    [House Report 106-1033]
    [From the U.S. Government Publishing Office]

    106th Congress
     2d Session             HOUSE OF REPRESENTATIVES                 Report
                                                                   106-1033
    _______________________________________________________________________

    MAKING OMNIBUS CONSOLIDATED AND EMERGENCY SUPPLEMENTAL APPROPRIATIONS
                             FOR FISCAL YEAR 2001

                                   __________

                               CONFERENCE REPORT

                                  To accompany

                                   H.R. 4577

                   December 15, 2000.--Ordered to be printed

                                   __________

                        U.S. GOVERNMENT PRINTING OFFICE
    67-191                     WASHINGTON : 2000

    106th Congress                                                   Report
                            HOUSE OF REPRESENTATIVES
     2d Session                                                    106-1033

    ======================================================================

     MAKING OMNIBUS CONSOLIDATED AND EMERGENCY SUPPLEMENTAL APPROPRIATIONS
                              FOR FISCAL YEAR 2001

                                    _______

                   December 15, 2000.--Ordered to be printed

                                    _______

     Mr. Young of Florida, from the committee of conference, submitted the
                                   following

                               CONFERENCE REPORT

                            [To accompany H.R. 4577]

          The committee of conference on the disagreeing votes of
    the two Houses on the amendment of the Senate to the bill (H.R.
    4577) ``making appropriations for the Departments of Labor,
    Health and Human Services, and Education, and related agencies
    for the fiscal year ending September 30, 2001, and for other
    purposes'', having met, after full and free conference, have
    agreed to recommend and do recommend to their respective Houses
    as follows:
          That the House recede from its disagreement to the
    amendment of the Senate, and agree to the same with amendments,
    as follows:
          In lieu of the matter stricken and inserted by said
    amendment, insert:
          Section 1. (a) The provisions of the following bills of
    the 106th Congress are hereby enacted into law:
                (1) H.R. 5656, as introduced on December 14, 2000.
                (2) H.R. 5657, as introduced on December 14, 2000.
                (3) H.R. 5658, as introduced on December 14, 2000.
                (4) H.R. 5666, as introduced on December 15, 2000.
                (5) H.R. 5660, as introduced on December 14, 2000.
                (6) H.R. 5661, as introduced on December 14, 2000.
                (7) H.R. 5662, as introduced on December 14, 2000.
                (8) H.R. 5663, as introduced on December 14, 2000.
                (9) H.R. 5667, as introduced on December 15, 2000.
          (b) In publishing this Act in slip form and in the United
    States Statutes at Large pursuant to section 112 of title 1,
    United States Code, the Archivist of the United States shall
    include after the date of approval at the end appendixes
    setting forth the texts of the bills referred to in subsection
    (a) of this section and the text of any other bill enacted into
    law by reference by reason of the enactment of this Act.
          Sec. 2. (a) Notwithstanding Rule 3 of the Budget
    Scorekeeping Guidelines set forth in the joint explanatory
    statement of the committee of conference accompanying
    Conference Report 105-217, legislation enacted in section 505
    of the Department of Transportation and Related Agencies
    Appropriations Act, 2001, section 312 of the Legislative Branch
    Appropriations Act, 2001, titles X and XI of H.R. 5548 (106th
    Congress) as enacted by H.R. 4942 (106th Congress), Division B
    of H.R. 5666 (106th Congress) as enacted by this Act, and
    sections 1(a)(5) through 1(a)(9) of this Act that would have
    been estimated by the Office of Management and Budget as
    changing direct spending or receipts under section 252 of the
    Balanced Budget and Emergency Deficit Control Act of 1985 were
    it included in an Act other than an appropriations Act shall be
    treated as direct spending or receipts legislation, as
    appropriate, under section 252 of the Balanced Budget and
    Emergency Deficit Control Act of 1985.
          (b) In preparing the final sequestration report required
    by section 254(f)(3) of the Balanced Budget and Emergency
    Deficit Control Act of 1985 for fiscal year 2001, in addition
    to the information required by that section, the Director of
    the Office of Management and Budget shall change any balance of
    direct spending and receipts legislation for fiscal year 2001
    under section 252 of that Act to zero.
          This Act may be cited as the ``Consolidated
    Appropriations Act, 2001''.
    Amend the title of the bill so as to read:
          ``An Act making consolidated appropriations for the
    fiscal year ending September 30, 2001, and for other
    purposes.''.
    And the Senate agree to the same.
                                       John Edward Porter,
                                       C.W. Bill Young,
                                       Henry Bonilla,
                                       Ernest J. Istook, Jr.,
                                       Dan Miller,
                                       Jay Dickey,
                                       Roger F. Wicker,
                                       Anne M. Northup,
                                       Randy ``Duke'' Cunningham,
                                       David R. Obey,
                                       Steny H. Hoyer,
                                       Nancy Pelosi,
                                       Nita M. Lowey,
                                       Rosa L. DeLauro,
                                       Jesse L. Jackson, Jr.
                                               (Except elimination of
                                                   LIHEAP and CCDBG
                                                   advanced funding;
                                                   immigration and
                                                   charitable choice
                                                   provisions.)
                                     Managers on the Part of the House.

                                       Arlen Specter,
                                       Thad Cochran,
                                       Slade Gorton,
                                       Judd Gregg,
                                       Kay Bailey Hutchison,
                                       Ted Stevens,
                                       Pete V. Domenici,
                                       Tom Harkin,
                                       Ernest F. Hollings,
                                       Daniel K. Inouye,
                                       Harry Reid,
                                       Herb Kohl,
                                       Patty Murray,
                                       Dianne Feinstein,
                                       Robert C. Byrd,
                                    Managers on the Part of the Senate.
           JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

          The managers on the part of the House and Senate at the
    conference on the disagreeing votes of the two Houses on the
    amendment of the Senate to the bill (H.R. 4577) making
    appropriations for the Departments of Labor, Health and Human
    Services, and Education, and Related Agencies, and for other
    purposes, submit the following joint statement of the House and
    Senate in explanation of the effect of the action agreed upon
    by the managers and recommended in the accompanying conference
    report.
          This conference agreement includes more than the
    Departments of Labor, Health and Human Services, and Education,
    and Related Agencies Appropriations Act, 2001. The conference
    agreement has been expanded to including the Legislative Branch
    Appropriations Act, 2001; the Treasury and General Government
    Appropriations Act, 2001; the Miscellaneous Appropriations Act,
    2001; the Commodity Futures Modernization Act of 2000; the
    Medicare, Medicaid, and SCHIP Benefits Improvement and
    Protection Act of 2000; the Community Renewal Tax Relief Act of
    2000; the New Markets Venture Capital Program Act of 2000; and
    the Small Business Reauthorization Act of 2000; as well as the
    Departments of Labor, Health and Human Services, and Education,
    and Related Agencies Appropriations Act, 2001. The provisions
    of all of these Acts have been enacted into law by reference in
    this conference report; however, a copy of the referenced
    legislation has been included in this statement for
    convenience.

      DEPARTMENTS OF LABOR, HEALTH AND HUMAN SERVICES, AND EDUCATION, AND
                        RELATED AGENCIES APPROPRIATIONS

          The conference agreement would enact the provisions of
    H.R. 5656 as introduced on December 14, 2000. The text of that
    bill follows:

     A BILL Making appropriations for the Departments of Labor, Health and
    Human Services, and Education, and related agencies for the fiscal year
               ending September 30, 2001, and for other purposes.

          Be it enacted by the Senate and House of Representatives
    of the United States of America in Congress assembled, That the
    following sums are appropriated, out of any money in the
    Treasury not otherwise appropriated, for the Departments of
    Labor, Health and Human Services, and Education, and related
    agencies for the fiscal year ending September 30, 2001, and for
    other purposes, namely:

                          TITLE I--DEPARTMENT OF LABOR

                     Employment and Training Administration

                        training and employment services

        For necessary expenses of the Workforce Investment Act,
    including the purchase and hire of passenger motor vehicles,
    the construction, alteration, and repair of buildings and other
    facilities, and the purchase of real property for training
    centers as authorized by the Workforce Investment Act; the
    Women in Apprenticeship and Nontraditional Occupations Act; and
    the National Skill Standards Act of 1994; $3,207,805,000 plus
    reimbursements, of which $1,808,465,000 is available for
    obligation for the period July 1, 2001 through June 30, 2002;
    of which $1,377,965,000 is available for obligation for the
    period April 1, 2001 through June 30, 2002, including
    $1,102,965,000 to carry out chapter 4 of the Workforce
    Investment Act and $275,000,000 to carry out section 169 of
    such Act; and of which $20,375,000 is available for the period
    July 1, 2001 through June 30, 2004 for necessary expenses of
    construction, rehabilitation, and acquisition of Job Corps
    centers: Provided, That $9,098,000 shall be for carrying out
    section 172 of the Workforce Investment Act, and $3,500,000
    shall be for carrying out the National Skills Standards Act of
    1994: Provided further, That no funds from any other
    appropriation shall be used to provide meal services at or for
    Job Corps centers: Provided further, That funds provided to
    carry out section 171(d) of such Act may be used for
    demonstration projects that provide assistance to new entrants
    in the workforce and incumbent workers: Provided further, That
    funding provided to carry out projects under section 171 of the
    Workforce Investment Act of 1998 that are identified in the
    Conference Agreement, shall not be subject to the requirements
    of section 171(b)(2)(B) of such Act, the requirements of
    section 171(c)(4)(D) of such Act, or the joint funding
    requirements of sections 171(b)(2)(A) and 171(c)(4)(A) of such
    Act: Provided further, That funding appropriated herein for
    Dislocated Worker Employment and Training Activities under
    section 132(a)(2)(A) of the Workforce Investment Act of 1998
    may be distributed for Dislocated Worker Projects under section
    171(d) of the Act without regard to the 10 percent limitation
    contained in section 171(d) of the Act: Provided further, That
    of the funds made available for Job Corps operating expenses in
    the Department of Labor Appropriations Act, 2000, as enacted by
    section 1000(a)(4) of Public Law 106-113, $586,487 shall be
    paid to the city of Vergennes, Vermont in settlement of the
    city's claim: Provided further, That $4,600,000 provided herein
    for dislocated worker employment and training activities shall
    be made available to the New Mexico Telecommunications Call
    Center Training Consortium for training in telecommunications-
    related occupations.
        For necessary expenses of the Workforce Investment Act,
    including the purchase and hire of passenger motor vehicles,
    the construction, alteration, and repair of buildings and other
    facilities, and the purchase of real property for training
    centers as authorized by the Workforce Investment Act;
    $2,463,000,000 plus reimbursements, of which $2,363,000,000 is
    available for obligation for the period October 1, 2001 through
    June 30, 2002, and of which $100,000,000 is available for the
    period October 1, 2001 through June 30, 2004, for necessary
    expenses of construction, rehabilitation, and acquisition of
    Job Corps centers.

                community service employment for older americans

        To carry out title V of the Older Americans Act of 1965, as
    amended, $440,200,000.

                  federal unemployment benefits and allowances

        For payments during the current fiscal year of trade
    adjustment benefit payments and allowances under part I; and
    for training, allowances for job search and relocation, and
    related State administrative expenses under part II,
    subchapters B and D, chapter 2, title II of the Trade Act of
    1974, as amended, $406,550,000, together with such amounts as
    may be necessary to be charged to the subsequent appropriation
    for payments for any period subsequent to September 15 of the
    current year.

         state unemployment insurance and employment service operations

        For authorized administrative expenses, $193,452,000,
    together with not to exceed $3,172,246,000 (including not to
    exceed $1,228,000 which may be used for amortization payments
    to States which had independent retirement plans in their State
    employment service agencies prior to 1980), which may be
    expended from the Employment Security Administration account in
    the Unemployment Trust Fund including the cost of administering
    section 51 of the Internal Revenue Code of 1986, as amended,
    section 7(d) of the Wagner-Peyser Act, as amended, the Trade
    Act of 1974, as amended, the Immigration Act of 1990, and the
    Immigration and Nationality Act, as amended, and of which the
    sums available in the allocation for activities authorized by
    title III of the Social Security Act, as amended (42 U.S.C.
    502-504), and the sums available in the allocation for
    necessary administrative expenses for carrying out 5 U.S.C.
    8501-8523, shall be available for obligation by the States
    through December 31, 2001, except that funds used for
    automation acquisitions shall be available for obligation by
    the States through September 30, 2003; and of which
    $193,452,000, together with not to exceed $773,283,000 of the
    amount which may be expended from said trust fund, shall be
    available for obligation for the period July 1, 2001 through
    June 30, 2002, to fund activities under the Act of June 6,
    1933, as amended, including the cost of penalty mail authorized
    under 39 U.S.C. 3202(a)(1)(E) made available to States in lieu
    of allotments for such purpose: Provided, That to the extent
    that the Average Weekly Insured Unemployment (AWIU) for fiscal
    year 2001 is projected by the Department of Labor to exceed
    2,396,000, an additional $28,600,000 shall be available for
    obligation for every 100,000 increase in the AWIU level
    (including a pro rata amount for any increment less than
    100,000) from the Employment Security Administration Account of
    the Unemployment Trust Fund: Provided further, That funds
    appropriated in this Act which are used to establish a national
    one-stop career center system, or which are used to support the
    national activities of the Federal-State unemployment insurance
    programs, may be obligated in contracts, grants or agreements
    with non-State entities: Provided further, That funds
    appropriated under this Act for activities authorized under the
    Wagner-Peyser Act, as amended, and title III of the Social
    Security Act, may be used by the States to fund integrated
    Employment Service and Unemployment Insurance automation
    efforts, notwithstanding cost allocation principles prescribed
    under Office of Management and Budget Circular A-87.

            advances to the unemployment trust fund and other funds

        For repayable advances to the Unemployment Trust Fund as
    authorized by sections 905(d) and 1203 of the Social Security
    Act, as amended, and to the Black Lung Disability Trust Fund as
    authorized by section 9501(c)(1) of the Internal Revenue Code
    of 1954, as amended; and for nonrepayable advances to the
    Unemployment Trust Fund as authorized by section 8509 of title
    5, United States Code, and to the ``Federal unemployment
    benefits and allowances'' account, to remain available until
    September 30, 2002, $435,000,000.
        In addition, for making repayable advances to the Black
    Lung Disability Trust Fund in the current fiscal year after
    September 15, 2001, for costs incurred by the Black Lung
    Disability Trust Fund in the current fiscal year, such sums as
    may be necessary.

                             program administration

        For expenses of administering employment and training
    programs, $110,651,000, including $6,431,000 to support up to
    75 full-time equivalent staff, the majority of which will be
    term Federal appointments lasting no more than 1 year, to
    administer welfare-to-work grants, together with not to exceed
    $48,507,000, which may be expended from the Employment Security
    Administration account in the Unemployment Trust Fund.

                  Pension and Welfare Benefits Administration

                             salaries and expenses

        For necessary expenses for the Pension and Welfare Benefits
    Administration, $107,832,000.

                      Pension Benefit Guaranty Corporation

                   pension benefit guaranty corporation fund

        The Pension Benefit Guaranty Corporation is authorized to
    make such expenditures, including financial assistance
    authorized by section 104 of Public Law 96-364, within limits
    of funds and borrowing authority available to such Corporation,
    and in accord with law, and to make such contracts and
    commitments without regard to fiscal year limitations as
    provided by section 104 of the Government Corporation Control
    Act, as amended (31 U.S.C. 9104), as may be necessary in
    carrying out the program through September 30, 2001, for such
    Corporation: Provided, That not to exceed $11,652,000 shall be
    available for administrative expenses of the Corporation:
    Provided further, That expenses of such Corporation in
    connection with the termination of pension plans, for the
    acquisition, protection or management, and investment of trust
    assets, and for benefits administration services shall be
    considered as non-administrative expenses for the purposes
    hereof, and excluded from the above limitation.

                      Employment Standards Administration

                             salaries and expenses

        For necessary expenses for the Employment Standards
    Administration, including reimbursement to State, Federal, and
    local agencies and their employees for inspection services
    rendered, $361,491,000, together with $1,985,000 which may be
    expended from the Special Fund in accordance with sections
    39(c), 44(d) and 44(j) of the Longshore and Harbor Workers'
    Compensation Act: Provided, That $2,000,000 shall be for the
    development of an alternative system for the electronic
    submission of reports required to be filed under the Labor-
    Management Reporting and Disclosure Act of 1959, as amended,
    and for a computer database of the information for each
    submission by whatever means, that is indexed and easily
    searchable by the public via the Internet: Provided further,
    That the Secretary of Labor is authorized to accept, retain,
    and spend, until expended, in the name of the Department of
    Labor, all sums of money ordered to be paid to the Secretary of
    Labor, in accordance with the terms of the Consent Judgment in
    Civil Action No. 91-0027 of the United States District Court
    for the District of the Northern Mariana Islands (May 21,
    1992): Provided further, That the Secretary of Labor is
    authorized to establish and, in accordance with 31 U.S.C. 3302,
    collect and deposit in the Treasury fees for processing
    applications and issuing certificates under sections 11(d) and
    14 of the Fair Labor Standards Act of 1938, as amended (29
    U.S.C. 211(d) and 214) and for processing applications and
    issuing registrations under title I of the Migrant and Seasonal
    Agricultural Worker Protection Act (29 U.S.C. 1801 et seq.).

                                special benefits

                         (including transfer of funds)

        For the payment of compensation, benefits, and expenses
    (except administrative expenses) accruing during the current or
    any prior fiscal year authorized by title 5, chapter 81 of the
    United States Code; continuation of benefits as provided for
    under the heading ``Civilian War Benefits'' in the Federal
    Security Agency Appropriation Act, 1947; the Employees'
    Compensation Commission Appropriation Act, 1944; sections 4(c)
    and 5(f) of the War Claims Act of 1948 (50 U.S.C. App. 2012);
    and 50 percent of the additional compensation and benefits
    required by section 10(h) of the Longshore and Harbor Workers'
    Compensation Act, as amended, $56,000,000 together with such
    amounts as may be necessary to be charged to the subsequent
    year appropriation for the payment of compensation and other
    benefits for any period subsequent to August 15 of the current
    year: Provided, That amounts appropriated may be used under
    section 8104 of title 5, United States Code, by the Secretary
    of Labor to reimburse an employer, who is not the employer at
    the time of injury, for portions of the salary of a reemployed,
    disabled beneficiary: Provided further, That balances of
    reimbursements unobligated on September 30, 2000, shall remain
    available until expended for the payment of compensation,
    benefits, and expenses: Provided further, That in addition
    there shall be transferred to this appropriation from the
    Postal Service and from any other corporation or
    instrumentality required under section 8147(c) of title 5,
    United States Code, to pay an amount for its fair share of the
    cost of administration, such sums as the Secretary determines
    to be the cost of administration for employees of such fair
    share entities through September 30, 2001: Provided further,
    That of those funds transferred to this account from the fair
    share entities to pay the cost of administration, $34,910,000
    shall be made available to the Secretary as follows: (1) for
    the operation of and enhancement to the automated data
    processing systems, including document imaging, medical bill
    review, and periodic roll management, in support of Federal
    Employees' Compensation Act administration, $23,371,000; (2)
    for conversion to a paperless office, $7,005,000; (3) for
    communications redesign, $1,750,000; (4) for information
    technology maintenance and support, $2,784,000; and (5) the
    remaining funds shall be paid into the Treasury as
    miscellaneous receipts: Provided further, That the Secretary
    may require that any person filing a notice of injury or a
    claim for benefits under chapter 81 of title 5, United States
    Code, or 33 U.S.C. 901 et seq., provide as part of such notice
    and claim, such identifying information (including Social
    Security account number) as such regulations may prescribe.

                        black lung disability trust fund

                         (including transfer of funds)

        For payments from the Black Lung Disability Trust Fund,
    $1,028,000,000, of which $975,343,000 shall be available until
    September 30, 2002, for payment of all benefits as authorized
    by section 9501(d)(1), (2), (4), and (7) of the Internal
    Revenue Code of 1954, as amended, and interest on advances as
    authorized by section 9501(c)(2) of that Act, and of which
    $30,393,000 shall be available for transfer to Employment
    Standards Administration, Salaries and Expenses, $21,590,000
    for transfer to Departmental Management, Salaries and Expenses,
    $318,000 for transfer to Departmental Management, Office of
    Inspector General, and $356,000 for payment into miscellaneous
    receipts for the expenses of the Department of Treasury, for
    expenses of operation and administration of the Black Lung
    Benefits program as authorized by section 9501(d)(5) of that
    Act: Provided, That, in addition, such amounts as may be
    necessary may be charged to the subsequent year appropriation
    for the payment of compensation, interest, or other benefits
    for any period subsequent to August 15 of the current year.

                 Occupational Safety and Health Administration

                             salaries and expenses

        For necessary expenses for the Occupational Safety and
    Health Administration, $425,983,000, including not to exceed
    $88,493,000 which shall be the maximum amount available for
    grants to States under section 23(g) of the Occupational Safety
    and Health Act, which grants shall be no less than 50 percent
    of the costs of State occupational safety and health programs
    required to be incurred under plans approved by the Secretary
    under section 18 of the Occupational Safety and Health Act of
    1970; and, in addition, notwithstanding 31 U.S.C. 3302, the
    Occupational Safety and Health Administration may retain up to
    $750,000 per fiscal year of training institute course tuition
    fees, otherwise authorized by law to be collected, and may
    utilize such sums for occupational safety and health training
    and education grants: Provided, That, notwithstanding 31 U.S.C.
    3302, the Secretary of Labor is authorized, during the fiscal
    year ending September 30, 2001, to collect and retain fees for
    services provided to Nationally Recognized Testing
    Laboratories, and may utilize such sums, in accordance with the
    provisions of 29 U.S.C. 9a, to administer national and
    international laboratory recognition programs that ensure the
    safety of equipment and products used by workers in the
    workplace: Provided further, That none of the funds
    appropriated under this paragraph shall be obligated or
    expended to prescribe, issue, administer, or enforce any
    standard, rule, regulation, or order under the Occupational
    Safety and Health Act of 1970 which is applicable to any person
    who is engaged in a farming operation which does not maintain a
    temporary labor camp and employs 10 or fewer employees:
    Provided further, That no funds appropriated under this
    paragraph shall be obligated or expended to administer or
    enforce any standard, rule, regulation, or order under the
    Occupational Safety and Health Act of 1970 with respect to any
    employer of 10 or fewer employees who is included within a
    category having an occupational injury lost workday case rate,
    at the most precise Standard Industrial Classification Code for
    which such data are published, less than the national average
    rate as such rates are most recently published by the
    Secretary, acting through the Bureau of Labor Statistics, in
    accordance with section 24 of that Act (29 U.S.C. 673),
    except--
                (1) to provide, as authorized by such Act,
            consultation, technical assistance, educational and
            training services, and to conduct surveys and studies;
                (2) to conduct an inspection or investigation in
            response to an employee complaint, to issue a citation
            for violations found during such inspection, and to
            assess a penalty for violations which are not corrected
            within a reasonable abatement period and for any
            willful violations found;
                (3) to take any action authorized by such Act with
            respect to imminent dangers;
                (4) to take any action authorized by such Act with
            respect to health hazards;
                (5) to take any action authorized by such Act with
            respect to a report of an employment accident which is
            fatal to one or more employees or which results in
            hospitalization of two or more employees, and to take
            any action pursuant to such investigation authorized by
            such Act; and
                (6) to take any action authorized by such Act with
            respect to complaints of discrimination against
            employees for exercising rights under such Act:
    Provided further, That the foregoing proviso shall not apply to
    any person who is engaged in a farming operation which does not
    maintain a temporary labor camp and employs 10 or fewer
    employees.

                     Mine Safety and Health Administration

                             salaries and expenses

        For necessary expenses for the Mine Safety and Health
    Administration, $246,747,000, including purchase and bestowal
    of certificates and trophies in connection with mine rescue and
    first-aid work, and the hire of passenger motor vehicles;
    including up to $1,000,000 for mine rescue and recovery
    activities, which shall be available only to the extent that
    fiscal year 2001 obligations for these activities exceed
    $1,000,000; in addition, not to exceed $750,000 may be
    collected by the National Mine Health and Safety Academy for
    room, board, tuition, and the sale of training materials,
    otherwise authorized by law to be collected, to be available
    for mine safety and health education and training activities,
    notwithstanding 31 U.S.C. 3302; and, in addition, the Mine
    Safety and Health Administration may retain up to $1,000,000
    from fees collected for the approval and certification of
    equipment, materials, and explosives for use in mines, and may
    utilize such sums for such activities; the Secretary is
    authorized to accept lands, buildings, equipment, and other
    contributions from public and private sources and to prosecute
    projects in cooperation with other agencies, Federal, State, or
    private; the Mine Safety and Health Administration is
    authorized to promote health and safety education and training
    in the mining community through cooperative programs with
    States, industry, and safety associations; and any funds
    available to the department may be used, with the approval of
    the Secretary, to provide for the costs of mine rescue and
    survival operations in the event of a major disaster.

                           Bureau of Labor Statistics

                             salaries and expenses

        For necessary expenses for the Bureau of Labor Statistics,
    including advances or reimbursements to State, Federal, and
    local agencies and their employees for services rendered,
    $374,327,000, together with not to exceed $67,257,000, which
    may be expended from the Employment Security Administration
    account in the Unemployment Trust Fund; and $10,000,000 which
    shall be available able for obligation for the period July 1,
    2001 through June 30, 2002, for Occupational Employment
    Statistics.

                            Departmental Management

                             salaries and expenses

        For necessary expenses for Departmental Management,
    including the hire of three sedans, and including the
    management or operation, through contracts, grants or other
    arrangements of Departmental bilateral and multilateral foreign
    technical assistance, of which the funds designated to carry
    out bilateral assistance under the international child labor
    initiative shall be available for obligation through September
    30, 2002, and $37,000,000 for the acquisition of Departmental
    information technology, architecture, infrastructure,
    equipment, software and related needs which will be allocated
    by the Department's Chief Information Officer in accordance
    with the Department's capital investment management process to
    assure a sound investment strategy; $380,529,000; together with
    not to exceed $310,000, which may be expended from the
    Employment Security Administration account in the Unemployment
    Trust Fund: Provided, That no funds made available by this Act
    may be used by the Solicitor of Labor to participate in a
    review in any United States court of appeals of any decision
    made by the Benefits Review Board under section 21 of the
    Longshore and Harbor Workers' Compensation Act (33 U.S.C. 921)
    where such participation is precluded by the decision of the
    United States Supreme Court in Director, Office of Workers'
    Compensation Programs v. Newport News Shipbuilding, 115 S. Ct.
    1278 (1995), notwithstanding any provisions to the contrary
    contained in Rule 15 of the Federal Rules of Appellate
    Procedure: Provided further, That no funds made available by
    this Act may be used by the Secretary of Labor to review a
    decision under the Longshore and Harbor Workers' Compensation
    Act (33 U.S.C. 901 et seq.) that has been appealed and that has
    been pending before the Benefits Review Board for more than 12
    months: Provided further, That any such decision pending a
    review by the Benefits Review Board for more than 1 year shall
    be considered affirmed by the Benefits Review Board on the 1-
    year anniversary of the filing of the appeal, and shall be
    considered the final order of the Board for purposes of
    obtaining a review in the United States courts of appeals:
    Provided further, That these provisions shall not be applicable
    to the review or appeal of any decision issued under the Black
    Lung Benefits Act (30 U.S.C. 901 et seq.): Provided further,
    That beginning in fiscal year 2001, there is established in the
    Department of Labor an office of disability employment policy
    which shall, under the overall direction of the Secretary,
    provide leadership, develop policy and initiatives, and award
    grants furthering the objective of eliminating barriers to the
    training and employment of people with disabilities. Such
    office shall be headed by an assistant secretary: Provided
    further, That of amounts provided under this head, not more
    than $23,002,000 is for this purpose.

                        veterans employment and training

        Not to exceed $186,913,000 may be derived from the
    Employment Security Administration account in the Unemployment
    Trust Fund to carry out the provisions of 38 U.S.C. 4100-4110A,
    4212, 4214, and 4321-4327, and Public Law 103-353, and which
    shall be available for obligation by the States through
    December 31, 2001. To carry out the Stewart B. McKinney
    Homeless Assistance Act and section 168 of the Workforce
    Investment Act of 1998, $24,800,000, of which $7,300,000 shall
    be available for obligation for the period July 1, 2001,
    through June 30, 2002.

                          office of inspector general

        For salaries and expenses of the Office of Inspector
    General in carrying out the provisions of the Inspector General
    Act of 1978, as amended, $50,015,000, together with not to
    exceed $4,770,000, which may be expended from the Employment
    Security Administration account in the Unemployment Trust Fund.

                               GENERAL PROVISIONS

        Sec. 101. None of the funds appropriated in this title for
    the Job Corps shall be used to pay the compensation of an
    individual, either as direct costs or any proration as an
    indirect cost, at a rate in excess of Executive Level II.

                              (transfer of funds)

        Sec. 102. Not to exceed 1 percent of any discretionary
    funds (pursuant to the Balanced Budget and Emergency Deficit
    Control Act of 1985, as amended) which are appropriated for the
    current fiscal year for the Department of Labor in this Act may
    be transferred between appropriations, but no such
    appropriation shall be increased by more than 3 percent by any
    such transfer: Provided, That the Appropriations Committees of
    both Houses of Congress are notified at least 15 days in
    advance of any transfer.
        Sec. 103. Section 403(a)(5)(C)(viii) of the Social Security
    Act (42 U.S.C. 603(a)(5)(C)(viii)) (as amended by section
    801(b)(1)(A) of the Departments of Labor, Health and Human
    Services, and Education, and Related Agencies Appropriations
    Act, 2000 (as enacted into law by section 1000(a)(4) of Public
    Law 106-113)) is amended by striking ``3 years'' and inserting
    ``5 years''.
        Sec. 104. No funds appropriated in this Act or any other
    Act making appropriations for fiscal year 2001 may be used to
    implement or enforce the proposed and final regulations
    appearing in 65 Fed. Reg. 43528-43583, regarding temporary
    alien labor certification applications and petitions for
    admission of nonimmigrant workers, or any similar or successor
    rule with an effective date prior to October 1, 2001: Provided,
    That nothing in this section shall prohibit the development or
    revision of such a rule, or the publication of any similar or
    successor proposed or final rule, or the provision of training
    or technical assistance, or other activities necessary and
    appropriate in preparing to implement such a rule with an
    effective date after September 30, 2001.
        Sec. 105. Section 218(c)(4) of the Immigration and
    Nationality Act (8 U.S.C. 1188(c)(4)) is amended by adding at
    the end the following new sentence: ``The determination as to
    whether the housing furnished by an employer for an H-2A worker
    meets the requirements imposed by this paragraph must be made
    prior to the date specified in paragraph (3)(A) by which the
    Secretary of Labor is required to make a certification
    described in subsection (a)(1) with respect to a petition for
    the importation of such worker.''.
        Sec. 106. Section 286(s)(6) of the Immigration and
    Naturalization Act (8 U.S.C. 1356(s)(6)) is amended by
    inserting, ``and section 212(a)(5)(A)'' after the second
    reference to ``section 212(n)(1)''.
        Sec. 107. (a) Section 403(a)(5) of the Social Security Act
    (as amended by section 806(b) of the Departments of Labor,
    Health and Human Services, and Education, and Related Agencies
    Appropriations Act, 2000 (as enacted into law by section
    1000(a)(4) of Public Law 106-113)) is amended by striking
    subparagraph (E) and redesignating subparagraphs (F) through
    (K) as subparagraphs (E) through (J), respectively.
        (b) The Social Security Act (as amended by section 806(b)
    of the Departments of Labor, Health and Human Services, and
    Education, and Related Agencies Appropriations Act, 2000 (as
    enacted into law by section 1000(a)(4) of Public Law 106-113))
    is further amended as follows:
                (1) Section 403(a)(5)(A)(i) (42 U.S.C.
            603(a)(5)(A)(i)) is amended by striking ``subparagraph
            (I)'' and inserting ``subparagraph (H)''.
                (2) Subclause (I) of each of subparagraphs (A)(iv)
            and (B)(v) of section 403(a)(5) (42 U.S.C.
            603(a)(5)(A)(iv)(I) and (B)(v)(I)) is amended--
                        (A) in item (aa)--
                                (i) by striking ``(I)'' and
                            inserting ``(H)''; and
                                (ii) by striking ``(G), and (H)''
                            and inserting ``and (G)''; and
                        (B) in item (bb), by striking ``(F)'' and
                    inserting ``(E)''.
                (3) Section 403(a)(5)(B)(v) (42 U.S.C.
            603(a)(5)(B)(v)) is amended in the matter preceding
            subclause (I) by striking ``(I)'' and inserting
            ``(H)''.
                (4) Subparagraphs (E), (F), and (G)(i) of section
            403(a)(5) (42 U.S.C. 603(a)(5)), as so redesignated by
            subsection (a) of this section, are each amended by
            striking ``(I)'' and inserting ``(H)''.
                (5) Section 412(a)(3)(A) (42 U.S.C. 612(a)(3)(A))
            is amended by striking ``403(a)(5)(I)'' and inserting
            ``403(a)(5)(H)''.
        (c) Section 403(a)(5)(H)(i)(II) of such Act (42 U.S.C.
    603(a)(5)(H)(i))(II) (as redesignated by subsection (a) of this
    section and as amended by section 806(b) of the Departments of
    Labor, Health and Human Services, and Education, and Related
    Agencies Appropriations Act, 2000 (as enacted into law by
    section 1000(a)(4) of Public Law 106-113)) is further amended
    by striking ``$1,450,000,000'' and inserting
    ``$1,400,000,000''.
        (d) The amendments made by subsections (a), (b), and (c) of
    this section shall take effect on October 1, 2000.
        This title may be cited as the ``Department of Labor
    Appropriations Act, 2001''.

               TITLE II--DEPARTMENT OF HEALTH AND HUMAN SERVICES

                  Health Resources and Services Administration

                         health resources and services

        For carrying out titles II, III, VII, VIII, X, XII, XIX,
    and XXVI of the Public Health Service Act, section 427(a) of
    the Federal Coal Mine Health and Safety Act, title V and
    section 1820 of the Social Security Act, the Health Care
    Quality Improvement Act of 1986, as amended, the Native
    Hawaiian Health Care Act of 1988, as amended, and the Poison
    Control Center Enhancement and Awareness Act, $5,525,476,000,
    of which $226,224,000 shall be available for the construction
    and renovation of health care and other facilities, and of
    which $25,000,000 from general revenues, notwithstanding
    section 1820(j) of the Social Security Act, shall be available
    for carrying out the Medicare rural hospital flexibility grants
    program under section 1820 of such Act: Provided, That the
    Division of Federal Occupational Health may utilize personal
    services contracting to employ professional management/
    administrative and occupational health professionals: Provided
    further, That of the funds made available under this heading,
    $250,000 shall be available until expended for facilities
    renovations at the Gillis W. Long Hansen's Disease Center:
    Provided further, That in addition to fees authorized by
    section 427(b) of the Health Care Quality Improvement Act of
    1986, fees shall be collected for the full disclosure of
    information under the Act sufficient to recover the full costs
    of operating the National Practitioner Data Bank, and shall
    remain available until expended to carry out that Act: Provided
    further, That fees collected for the full disclosure of
    information under the ``Health Care Fraud and Abuse Data
    Collection Program,'' authorized by section 1128E(d)(2) of the
    Social Security Act, shall be sufficient to recover the full
    costs of operating the program, and shall remain available
    until expended to carry out that Act: Provided further, That no
    more than $5,000,000 is available for carrying out the
    provisions of Public Law 104-73: Provided further, That of the
    funds made available under this heading, $253,932,000 shall be
    for the program under title X of the Public Health Service Act
    to provide for voluntary family planning projects: Provided
    further, That amounts provided to said projects under such
    title shall not be expended for abortions, that all pregnancy
    counseling shall be nondirective, and that such amounts shall
    not be expended for any activity (including the publication or
    distribution of literature) that in any way tends to promote
    public support or opposition to any legislative proposal or
    candidate for public office: Provided further, That
    $589,000,000 shall be for State AIDS Drug Assistance Programs
    authorized by section 2616 of the Public Health Service Act:
    Provided further, That of the amount provided under this
    heading, $700,000 shall be for the American Federation of Negro
    Affairs Education and Research Fund of Philadelphia, $900,000
    shall be for the Des Moines University Osteopathic Medical
    Center, $250,000 shall be for the University of Alaska,
    Anchorage, to train Alaska Natives as psychologists, $900,000
    shall be for Northeastern University in Boston, Massachusetts
    to train doctors to serve in low-income communities, $500,000
    shall be for the University of Alaska, Anchorage, to recruit
    and train nurses in rural areas, and $230,000 shall be for the
    Illinois Poison Center: Provided further, That, notwithstanding
    section 502(a)(1) of the Social Security Act, not to exceed
    $113,728,000 is available for carrying out special projects of
    regional and national significance pursuant to section
    501(a)(2) of such Act, of which $5,000,000 is for Columbia
    Hospital for Women Medical Center in Washington, D.C., to
    support community outreach programs for women, $5,000,000 is
    for continuation of the traumatic brain injury State
    demonstration projects, and $100,000 is for St. Joseph's Health
    Services of Rhode Island for the Providence Smiles dental
    program for low-income children.
        For special projects of regional and national significance
    under section 501(a)(2) of the Social Security Act,
    $30,000,000, which shall become available on October 1, 2001,
    and shall remain available until September 30, 2002: Provided,
    That such amount shall not be counted toward compliance with
    the allocation required in section 502(a)(1) of such Act:
    Provided further, That such amount shall be used only for
    making competitive grants to provide abstinence education (as
    defined in section 510(b)(2) of such Act) to adolescents and
    for evaluations (including longitudinal evaluations) of
    activities under the grants and for Federal costs of
    administering the grants: Provided further, That grants shall
    be made only to public and private entities which agree that,
    with respect to an adolescent to whom the entities provide
    abstinence education under such grant, the entities will not
    provide to that adolescent any other education regarding sexual
    conduct, except that, in the case of an entity expressly
    required by law to provide health information or services the
    adolescent shall not be precluded from seeking health
    information or services from the entity in a different setting
    than the setting in which the abstinence education was
    provided: Provided further, That the funds expended for such
    evaluations may not exceed 3.5 percent of such amount.

                   health education assistance loans program

        Such sums as may be necessary to carry out the purpose of
    the program, as authorized by title VII of the Public Health
    Service Act, as amended. For administrative expenses to carry
    out the guaranteed loan program, including section 709 of the
    Public Health Service Act, $3,679,000.

                 vaccine injury compensation program trust fund

        For payments from the Vaccine Injury Compensation Program
    Trust Fund, such sums as may be necessary for claims associated
    with vaccine-related injury or death with respect to vaccines
    administered after September 30, 1988, pursuant to subtitle 2
    of title XXI of the Public Health Service Act, to remain
    available until expended: Provided, That for necessary
    administrative expenses, not to exceed $2,992,000 shall be
    available from the Trust Fund to the Secretary of Health and
    Human Services.

                   Centers for Disease Control and Prevention

                    disease control, research, and training

        To carry out titles II, III, VII, XI, XV, XVII, XIX and
    XXVI of the Public Health Service Act, sections 101, 102, 103,
    201, 202, 203, 301, and 501 of the Federal Mine Safety and
    Health Act of 1977, sections 20, 21, and 22 of the Occupational
    Safety and Health Act, of 1970, title IV of the Immigration and
    Nationality Act and section 501 of the Refugee Education
    Assistance Act of 1980; including insurance of official motor
    vehicles in foreign countries; and hire, maintenance, and
    operation of aircraft, $3,868,027,000, of which $175,000,000
    shall remain available until expended for the facilities master
    plan for equipment and construction and renovation of
    facilities, and in addition, such sums as may be derived from
    authorized user fees, which shall be credited to this account,
    and of which $104,527,000 for international HIV/AIDS programs
    shall remain available until September 30, 2002: Provided, That
    in addition to amounts provided herein, up to $71,690,000 shall
    be available from amounts available under section 241 of the
    Public Health Service Act to carry out the National Center for
    Health Statistics Surveys: Provided further, That none of the
    funds made available for injury prevention and control at the
    Centers for Disease Control and Prevention may be used to
    advocate or promote gun control: Provided further, That the
    Director may redirect the total amount made available under
    authority of Public Law 101-502, section 3, dated November 3,
    1990, to activities the Director may so designate: Provided
    further, That the Congress is to be notified promptly of any
    such transfer: Provided further, That not to exceed $10,000,000
    may be available for making grants under section 1509 of the
    Public Health Service Act to not more than 15 States: Provided
    further, That notwithstanding any other provision of law, a
    single contract or related contracts for development and
    construction of facilities may be employed which collectively
    include the full scope of the project: Provided further, That
    the solicitation and contract shall contain the clause
    ``availability of funds'' found at 48 CFR 52.232-18: Provided
    further, That funds obligated for influenza vaccine stockpile
    in fiscal year 2000 and fiscal year 2001 shall be considered as
    appropriated under Section 3 of Public Law 101-502.

                         National Institutes of Health

                           national cancer institute

        For carrying out section 301 and title IV of the Public
    Health Service Act with respect to cancer, $3,757,242,000.

                   national heart, lung, and blood institute

        For carrying out section 301 and title IV of the Public
    Health Service Act with respect to cardiovascular, lung, and
    blood diseases, and blood and blood products, $2,299,866,000.

             national institute of dental and craniofacial research

        For carrying out section 301 and title IV of the Public
    Health Service Act with respect to dental disease,
    $306,448,000.

        national institute of diabetes and digestive and kidney diseases

        For carrying out section 301 and title IV of the Public
    Health Service Act with respect to diabetes and digestive and
    kidney disease, $1,303,385,000.

            national institute of neurological disorders and stroke

        For carrying out section 301 and title IV of the Public
    Health Service Act with respect to neurological disorders and
    stroke, $1,176,482,000.

             national institute of allergy and infectious diseases

        For carrying out section 301 and title IV of the Public
    Health Service Act with respect to allergy and infectious
    diseases, $2,043,208,000.

                 national institute of general medical sciences

        For carrying out section 301 and title IV of the Public
    Health Service Act with respect to general medical sciences,
    $1,535,823,000.

            national institute of child health and human development

        For carrying out section 301 and title IV of the Public
    Health Service Act with respect to child health and human
    development, $976,455,000.

                             national eye institute

        For carrying out section 301 and title IV of the Public
    Health Service Act with respect to eye diseases and visual
    disorders, $510,611,000.

              national institute of environmental health sciences

        For carrying out sections 301 and 311 and title IV of the
    Public Health Service Act with respect to environmental health
    sciences, $502,549,000.

                          national institute on aging

        For carrying out section 301 and title IV of the Public
    Health Service Act with respect to aging, $786,039,000.

     national institute of arthritis and musculoskeletal and skin diseases

        For carrying out section 301 and title IV of the Public
    Health Service Act with respect to arthritis and
    musculoskeletal and skin diseases, $396,687,000.

        national institute on deafness and other communication disorders

        For carrying out section 301 and title IV of the Public
    Health Service Act with respect to deafness and other
    communication disorders, $300,581,000.

                     national institute of nursing research

        For carrying out section 301 and title IV of the Public
    Health Service Act with respect to nursing research,
    $104,370,000.

               national institute on alcohol abuse and alcoholism

        For carrying out section 301 and title IV of the Public
    Health Service Act with respect to alcohol abuse and
    alcoholism, $340,678,000.

                        national institute on drug abuse

        For carrying out section 301 and title IV of the Public
    Health Service Act with respect to drug abuse, $781,327,000.

                      national institute of mental health

        For carrying out section 301 and title IV of the Public
    Health Service Act with respect to mental health,
    $1,107,028,000.

                    national human genome research institute

        For carrying out section 301 and title IV of the Public
    Health Service Act with respect to human genome research,
    $382,384,000.

                     national center for research resources

        For carrying out section 301 and title IV of the Public
    Health Service Act with respect to research resources and
    general research support grants, $817,475,000: Provided, That
    none of these funds shall be used to pay recipients of the
    general research support grants program any amount for indirect
    expenses in connection with such grants: Provided further, That
    $75,000,000 shall be for extramural facilities construction
    grants.

                      john e. fogarty international center

        For carrying out the activities at the John E. Fogarty
    International Center, $50,514,000.

                          national library of medicine

        For carrying out section 301 and title IV of the Public
    Health Service Act with respect to health information
    communications, $246,801,000, of which $4,000,000 shall be
    available until expended for improvement of information
    systems: Provided, That in fiscal year 2001, the Library may
    enter into personal services contracts for the provision of
    services in facilities owned, operated, or constructed under
    the jurisdiction of the National Institutes of Health.

           national center for complementary and alternative medicine

        For carrying out section 301 and title IV of the Public
    Health Service Act with respect to complementary and
    alternative medicine, $89,211,000.

           national center on minority health and health disparities

          For carrying out section 301 and title IV of the Public
    Health Service Act with respect to minority health and health
    disparities research, $130,200,000.

                             office of the director

                         (including transfer of funds)

        For carrying out the responsibilities of the Office of the
    Director, National Institutes of Health, $213,581,000, of which
    $48,271,000 shall be for the Office of AIDS Research: Provided,
    That funding shall be available for the purchase of not to
    exceed 20 passenger motor vehicles for replacement only:
    Provided further, That the Director may direct up to 1 percent
    of the total amount made available in this or any other Act to
    all National Institutes of Health appropriations to activities
    the Director may so designate: Provided further, That no such
    appropriation shall be decreased by more than 1 percent by any
    such transfers and that the Congress is promptly notified of
    the transfer: Provided further, That the National Institutes of
    Health is authorized to collect third party payments for the
    cost of clinical services that are incurred in National
    Institutes of Health research facilities and that such payments
    shall be credited to the National Institutes of Health
    Management Fund: Provided further, That all funds credited to
    the National Institutes of Health Management Fund shall remain
    available for one fiscal year after the fiscal year in which
    they are deposited: Provided further, That up to $500,000 shall
    be available to carry out section 499 of the Public Health
    Service Act: Provided further, That, notwithstanding section
    499(k)(10) of the Public Health Service Act, funds from the
    Foundation for the National Institutes of Health may be
    transferred to the National Institutes of Health.

                            buildings and facilities

        For the study of, construction of, and acquisition of
    equipment for, facilities of or used by the National Institutes
    of Health, including the acquisition of real property,
    $153,790,000, to remain available until expended, of which
    $47,300,000 shall be for the National Neuroscience Research
    Center: Provided, That notwithstanding any other provision of
    law, a single contract or related contracts for the development
    and construction of the first phase of the National
    Neuroscience Research Center may be employed which collectively
    include the full scope of the project: Provided further, That
    the solicitation and contract shall contain the clause
    ``availability of funds'' found at 48 CFR 52.232-18.

           Substance Abuse and Mental Health Services Administration

                   substance abuse and mental health services

        For carrying out titles V and XIX of the Public Health
    Service Act with respect to substance abuse and mental health
    services, the Protection and Advocacy for Mentally Ill
    Individuals Act of 1986, and section 301 of the Public Health
    Service Act with respect to program management, $2,958,001,000,
    of which $24,605,000 shall be available for the projects and in
    the amounts specified in the statement of the managers on the
    conference report accompanying this Act.

                   Agency for Healthcare Research and Quality

                        healthcare research and quality

        For carrying out titles III and IX of the Public Health
    Service Act, and part A of title XI of the Social Security Act,
    $104,963,000; in addition, amounts received from Freedom of
    Information Act fees, reimbursable and interagency agreements,
    and the sale of data shall be credited to this appropriation
    and shall remain available until expended: Provided, That the
    amount made available pursuant to section 926(b) of the Public
    Health Service Act shall not exceed $164,980,000.

                      Health Care Financing Administration

                         grants to states for medicaid

        For carrying out, except as otherwise provided, titles XI
    and XIX of the Social Security Act, $93,586,251,000, to remain
    available until expended.
        For making, after May 31, 2001, payments to States under
    title XIX of the Social Security Act for the last quarter of
    fiscal year 2001 for unanticipated costs, incurred for the
    current fiscal year, such sums as may be necessary.
        For making payments to States or in the case of section
    1928 on behalf of States under title XIX of the Social Security
    Act for the first quarter of fiscal year 2002, $36,207,551,000,
    to remain available until expended.
        Payment under title XIX may be made for any quarter with
    respect to a State plan or plan amendment in effect during such
    quarter, if submitted in or prior to such quarter and approved
    in that or any subsequent quarter.

                      payments to health care trust funds

        For payment to the Federal Hospital Insurance and the
    Federal Supplementary Medical Insurance Trust Funds, as
    provided under sections 217(g) and 1844 of the Social Security
    Act, sections 103(c) and 111(d) of the Social Security
    Amendments of 1965, section 278(d) of Public Law 97-248, and
    for administrative expenses incurred pursuant to section 201(g)
    of the Social Security Act, $70,381,600,000.

                               program management

        For carrying out, except as otherwise provided, titles XI,
    XVIII, XIX, and XXI of the Social Security Act, titles XIII and
    XXVII of the Public Health Service Act, and the Clinical
    Laboratory Improvement Amendments of 1988, not to exceed
    $2,246,326,000, to be transferred from the Federal Hospital
    Insurance and the Federal Supplementary Medical Insurance Trust
    Funds, as authorized by section 201(g) of the Social Security
    Act; together with all funds collected in accordance with
    section 353 of the Public Health Service Act and such sums as
    may be collected from authorized user fees and the sale of
    data, which shall remain available until expended, and together
    with administrative fees collected relative to Medicare
    overpayment recovery activities, which shall remain available
    until expended: Provided, That all funds derived in accordance
    with 31 U.S.C. 9701 from organizations established under title
    XIII of the Public Health Service Act shall be credited to and
    available for carrying out the purposes of this appropriation:
    Provided further, That $18,000,000 appropriated under this
    heading for the managed care system redesign shall remain
    available until expended: Provided further, That $20,000,000 of
    the amount available for research, demonstration, and
    evaluation activities shall be available to continue carrying
    out demonstration projects on Medicaid coverage of community-
    based attendant care services for people with disabilities
    which ensures maximum control by the consumer to select and
    manage their attendant care services: Provided further, That
    the Secretary of Health and Human Services is directed to enter
    into an agreement with the Mind-Body Institute of Boston,
    Massachusetts to conduct a demonstration of a lifestyle
    modification program: Provided further, That $2,800,000 of the
    amount available for research, demonstration, and evaluation
    activities shall be awarded for administration, evaluation,
    quality monitoring and peer review of this lifestyle
    modification demonstration: Provided further, That $2,800,000
    of the amount available for research, demonstration, and
    evaluation activities shall be awarded to a joint application
    from the University of Pittsburgh, Case Western Reserve in
    Cleveland, Ohio, and Mt. Sinai Hospital in Miami, Florida, to
    use integrated nursing services and technology to implement
    daily monitoring of congestive heart failure patients in
    underserved populations in accordance with established clinical
    guidelines: Provided further, That $500,000 of the amount
    available for research, demonstration, and evaluation
    activities shall be awarded to the University of Pittsburgh
    Medical Center and University of Pennsylvania for a study of
    the efficacy of surgical versus non-surgical management of
    abdominal aneurysms: Provided further, That $650,000 of the
    amount available for research, demonstration, and evaluation
    activities shall be awarded to the Vascular Surgery Outcomes
    Initiative at Dartmouth College: Provided further, That up to
    $300,000 of the amount available for research, demonstration,
    and evaluation activities shall be awarded to the United
    States-Mexico Border Counties Coalition for a study to
    determine the unreimbursed costs incurred to treat undocumented
    aliens for medical emergencies in southwest border States,
    their border counties, and hospitals within the jurisdiction of
    these States and counties: Provided further, That $1,700,000 of
    the amount available for research, demonstration, and
    evaluation activities shall be awarded to the AIDS Healthcare
    Foundation in Los Angeles for a demonstration of residential
    and outpatient treatment facilities: Provided further, That
    $350,000 of the amount available for research, demonstration,
    and evaluation activities shall be awarded to the Cook County,
    Illinois Bureau of Health for the Asthma Champion Initiative
    demonstration to reduce morbidity and mortality from asthma in
    high prevalence areas: Provided further, That $1,000,000 of the
    amount available for research, demonstration, and evaluation
    activities shall be awarded to the West Virginia University
    School of Medicine's Eye Center to test interventions and
    improve the quality of life for individuals with low vision,
    with a particular focus on the elderly: Provided further, That
    $1,000,000 of the amount available for research, demonstration,
    and evaluation activities shall be awarded to the Iowa
    Department of Public Health for the establishment and operation
    of a mercantile prescription drug purchasing cooperative or
    non-profit corporation demonstration: Provided further, That
    $691,000 of the amount available for research, demonstration,
    and evaluation activities shall be awarded to Ohio State
    University to determine the benefits of compliance packaging:
    Provided further, That $855,000 of the amount available for
    research, demonstration and evaluation activities shall be
    awarded to Children's Hospice International for a demonstration
    project to provide a continuum of care for children with life-
    threatening conditions and their families: Provided further,
    That $921,000 of the amount available for research,
    demonstration, and evaluation activities shall be awarded to
    Equip for Equality for a demonstration project to document the
    impact of an independent investigative unit that will examine
    deaths or other serious allegations of abuse and neglect of
    people with disabilities at facilities in Illinois: Provided
    further, That $1,000,000 of the amount available for research,
    demonstration, and evaluation activities shall be awarded to
    Duke University Medical Center to demonstrate the potential
    savings in the Medicare program of a reimbursement system based
    on preventative care: Provided further, That $1,843,000 of the
    amount available for research, demonstration, and evaluation
    activities shall be awarded to Bucks County, Pennsylvania, for
    a health improvement project: Provided further, That $255,000
    of the amount available for research, demonstration, and
    evaluation activities shall be awarded to the LA Care Health
    Plan in Los Angeles, California for a demonstration program to
    improve clinical data coordination among Medicaid providers:
    Provided further, That $646,000 of the amount available for
    research, demonstration, and evaluation activities shall be for
    the Shelby County Regional Medical Center to establish a Master
    Patient Index to determine patient Medicaid/TennCare
    eligibility: Provided further, That the Secretary of Health and
    Human Services is directed to collect fees in fiscal year 2001
    from Medicare+Choice organizations pursuant to section
    1857(e)(2) of the Social Security Act and from eligible
    organizations with risk-sharing contracts under section 1876 of
    that Act pursuant to section 1876(k)(4)(D) of that Act.

          health maintenance organization loan and loan guarantee fund

        For carrying out subsections (d) and (e) of section 1308 of
    the Public Health Service Act, any amounts received by the
    Secretary in connection with loans and loan guarantees under
    title XIII of the Public Health Service Act, to be available
    without fiscal year limitation for the payment of outstanding
    obligations. During fiscal year 2001, no commitments for direct
    loans or loan guarantees shall be made.

                    Administration for Children and Families

      payments to states for child support enforcement and family support
                                    programs

        For making payments to States or other non-Federal entities
    under titles I, IV-D, X, XI, XIV, and XVI of the Social
    Security Act and the Act of July 5, 1960 (24 U.S.C. ch. 9),
    $2,441,800,000, to remain available until expended; and for
    such purposes for the first quarter of fiscal year 2002,
    $1,000,000,000, to remain available until expended.
        For making payments to each State for carrying out the
    program of Aid to Families with Dependent Children under title
    IV-A of the Social Security Act before the effective date of
    the program of Temporary Assistance to Needy Families (TANF)
    with respect to such State, such sums as may be necessary:
    Provided, That the sum of the amounts available to a State with
    respect to expenditures under such title IV-A in fiscal year
    1997 under this appropriation and under such title IV-A as
    amended by the Personal Responsibility and Work Opportunity
    Reconciliation Act of 1996 shall not exceed the limitations
    under section 116(b) of such Act.
        For making, after May 31 of the current fiscal year,
    payments to States or other non-Federal entities under titles
    I, IV-D, X, XI, XIV, and XVI of the Social Security Act and the
    Act of July 5, 1960 (24 U.S.C. ch. 9), for the last 3 months of
    the current year for unanticipated costs, incurred for the
    current fiscal year, such sums as may be necessary.

                       low income home energy assistance

        For making payments under title XXVI of the Omnibus Budget
    Reconciliation Act of 1981, in addition to amounts already
    appropriated for fiscal year 2001, $300,000,000.
        For making payments under title XXVI of the Omnibus
    Reconciliation Act of 1981, $300,000,000: Provided, That these
    funds are hereby designated by the Congress to be emergency
    requirements pursuant to section 251(b)(2)(A) of the Balanced
    Budget and Emergency Deficit Control Act of 1985: Provided
    further, That these funds shall be made available only after
    submission to the Congress of a formal budget request by the
    President that includes designation of the entire amount of the
    request as an emergency requirement as defined in such Act.

                         refugee and entrant assistance

        For making payments for refugee and entrant assistance
    activities authorized by title IV of the Immigration and
    Nationality Act and section 501 of the Refugee Education
    Assistance Act of 1980 (Public Law 96-422), $423,109,000:
    Provided, That funds appropriated pursuant to section 414(a) of
    the Immigration and Nationality Act for fiscal year 2001 shall
    be available for the costs of assistance provided and other
    activities through September 30, 2003: Provided further, That
    up to $5,000,000 is available to carry out the Trafficking
    Victims Protection Act of 2000.
        For carrying out section 5 of the Torture Victims Relief
    Act of 1998 (Public Law 105-320), $10,000,000.

       payments to states for the child care and development block grant

        For carrying out sections 658A through 658R of the Omnibus
    Budget Reconciliation Act of 1981 (The Child Care and
    Development Block Grant Act of 1990), in addition to amounts
    already appropriated for fiscal year 2001, $817,328,000, such
    funds shall be used to supplement, not supplant state general
    revenue funds for child care assistance for low-income
    families: Provided, That of the funds appropriated for fiscal
    year 2001, $19,120,000 shall be available for child care
    resource and referral and school-aged child care activities, of
    which $1,000,000 shall be for the Child Care Aware toll free
    hotline: Provided further, That of the funds appropriated for
    fiscal year 2001, in addition to the amounts required to be
    reserved by the States under section 658G, $272,672,000 shall
    be reserved by the States for activities authorized under
    section 658G, of which $100,000,000 shall be for activities
    that improve the quality of infant and toddler child care:
    Provided further, That of the funds appropriated for fiscal
    year 2001, $10,000,000 shall be for use by the Secretary for
    child care research, demonstration, and evaluation activities.

                          social services block grant

        For making grants to States pursuant to section 2002 of the
    Social Security Act, $1,725,000,000: Provided, That
    notwithstanding section 2003(c) of such Act, as amended, the
    amount specified for allocation under such section for fiscal
    year 2001 shall be $1,725,000,000: Provided further, That,
    notwithstanding subparagraph (B) of section 404(d)(2) of such
    Act, the applicable percent specified under such subparagraph
    for a State to carry out State programs pursuant to title XX of
    such Act shall be 10 percent.

                    children and families services programs

                            (including rescissions)

        For carrying out, except as otherwise provided, the Runaway
    and Homeless Youth Act, the Developmental Disabilities
    Assistance and Bill of Rights Act, the Head Start Act, the
    Child Abuse Prevention and Treatment Act, the Native American
    Programs Act of 1974, title II of Public Law 95-266 (adoption
    opportunities), the Adoption and Safe Families Act of 1997
    (Public Law 105-89), the Abandoned Infants Assistance Act of
    1988, the Early Learning Opportunities Act, part B(1) of title
    IV and sections 413, 429A, 1110, and 1115 of the Social
    Security Act, and sections 40155, 40211, and 40241 of Public
    Law 103-322; for making payments under the Community Services
    Block Grant Act, section 473A of the Social Security Act, and
    title IV of Public Law 105-285, and for necessary
    administrative expenses to carry out said Acts and titles I,
    IV, X, XI, XIV, XVI, and XX of the Social Security Act, the Act
    of July 5, 1960 (24 U.S.C. ch. 9), the Omnibus Budget
    Reconciliation Act of 1981, title IV of the Immigration and
    Nationality Act, section 501 of the Refugee Education
    Assistance Act of 1980, section 5 of the Torture Victims Relief
    Act of 1998 (Public Law 105-320), sections 40155, 40211, and
    40241 of Public Law 103-322 and section 126 and titles IV and V
    of Public Law 100-485, $7,956,345,000, of which $43,000,000, to
    remain available until September 30, 2002, shall be for grants
    to States for adoption incentive payments, as authorized by
    section 473A of title IV of the Social Security Act (42 U.S.C.
    670-679) and may be made for adoptions completed in fiscal
    years 1999 and 2000; of which $682,876,000 shall be for making
    payments under the Community Services Block Grant Act; and of
    which $6,200,000,000 shall be for making payments under the
    Head Start Act, of which $1,400,000,000 shall become available
    October 1, 2001 and remain available through September 30,
    2002: Provided, That to the extent Community Services Block
    Grant funds are distributed as grant funds by a State to an
    eligible entity as provided under the Act, and have not been
    expended by such entity, they shall remain with such entity for
    carryover into the next fiscal year for expenditure by such
    entity consistent with program purposes: Provided further, That
    the Secretary shall establish procedures regarding the
    disposition of intangible property which permits grant funds,
    or intangible assets acquired with funds authorized under
    section 680 of the Community Services Block Grant Act, as
    amended, to become the sole property of such grantees after a
    period of not more than 12 years after the end of the grant for
    purposes and uses consistent with the original grant.
        Funds appropriated for fiscal year 2001 under section
    429A(e), part B of title IV of the Social Security Act shall be
    reduced by $6,000,000.
        Funds appropriated for fiscal year 2001 under section
    413(h)(1) of the Social Security Act shall be reduced by
    $15,000,000.

                       promoting safe and stable families

        For carrying out section 430 of the Social Security Act,
    $305,000,000.

           payments to states for foster care and adoption assistance

        For making payments to States or other non-Federal entities
    under title IV-E of the Social Security Act, $4,863,100,000.
        For making payments to States or other non-Federal entities
    under title IV-E of the Social Security Act, for the first
    quarter of fiscal year 2002, $1,735,900,000.

                            Administration on Aging

                            aging services programs

        For carrying out, to the extent not otherwise provided, the
    Older Americans Act of 1965, as amended, and section 398 of the
    Public Health Service Act, $1,103,135,000, of which $5,000,000
    shall be available for activities regarding medication
    management, screening, and education to prevent incorrect
    medication and adverse drug reactions: Provided,  That
    notwithstanding section 308(b)(1) of the Older Americans Act of
    1965, as amended, the amounts available to each State for
    administration of the State plan under title III of such Act
    shall be reduced not more than 5 percent below the amount that
    was available to such State for such purpose for fiscal year
    1995.

                            Office of the Secretary

                        general departmental management

        For necessary expenses, not otherwise provided, for general
    departmental management, including hire of six sedans, and for
    carrying out titles III, XVII, and XX of the Public Health
    Service Act, and the United States-Mexico Border Health
    Commission Act, $285,224,000, together with $5,851,000, to be
    transferred and expended as authorized by section 201(g)(1) of
    the Social Security Act from the Hospital Insurance Trust Fund
    and the Supplemental Medical Insurance Trust Fund: Provided
    further, That of the funds made available under this heading
    for carrying out title XX of the Public Health Service Act,
    $10,377,000 shall be for activities specified under section
    2003(b)(2), of which $10,157,000 shall be for prevention
    service demonstration grants under section 510(b)(2) of title V
    of the Social Security Act, as amended, without application of
    the limitation of section 2010(c) of said title XX: Provided
    further, That no funds shall be obligated for minority AIDS
    prevention and treatment activities until the Department of
    Health and Human Services submits an operating plan to the
    House and Senate Committees on Appropriations.

                          office of inspector general

        For expenses necessary for the Office of Inspector General
    in carrying out the provisions of the Inspector General Act of
    1978, as amended, $33,849,000: Provided, That of such amount,
    necessary sums are available for providing protective services
    to the Secretary and investigating non-payment of child support
    cases for which non-payment is a Federal offense under 18
    U.S.C. 228, each of which activities is hereby authorized in
    this and subsequent fiscal years.

                            office for civil rights

        For expenses necessary for the Office for Civil Rights,
    $24,742,000, together with not to exceed $3,314,000, to be
    transferred and expended as authorized by section 201(g)(1) of
    the Social Security Act from the Hospital Insurance Trust Fund
    and the Supplemental Medical Insurance Trust Fund.

                                policy research

        For carrying out, to the extent not otherwise provided,
    research studies under section 1110 of the Social Security Act,
    $16,738,000.

         retirement pay and medical benefits for commissioned officers

        For retirement pay and medical benefits of Public Health
    Service Commissioned Officers as authorized by law, for
    payments under the Retired Serviceman's Family Protection Plan
    and Survivor Benefit Plan, for medical care of dependents and
    retired personnel under the Dependents' Medical Care Act (10
    U.S.C. ch. 55), and for payments pursuant to section 229(b) of
    the Social Security Act (42 U.S.C. 429(b)), such amounts as may
    be required during the current fiscal year.

                public health and social services emergency fund

        For expenses necessary to support activities related to
    countering potential biological, disease and chemical threats
    to civilian populations, $241,231,000: Provided, That this
    amount is distributed as follows: Centers for Disease Control
    and Prevention, $181,131,000, of which $32,000,000 shall be for
    the Health Alert Network and $18,040,000 shall be for the
    continued study of the anthrax vaccine; and Office of Emergency
    Preparedness, $60,100,000.

                               GENERAL PROVISIONS

        Sec. 201. Funds appropriated in this title shall be
    available for not to exceed $37,000 for official reception and
    representation expenses when specifically approved by the
    Secretary.
        Sec. 202. The Secretary shall make available through
    assignment not more than 60 employees of the Public Health
    Service to assist in child survival activities and to work in
    AIDS programs through and with funds provided by the Agency for
    International Development, the United Nations International
    Children's Emergency Fund or the World Health Organization.
        Sec. 203. None of the funds appropriated under this Act may
    be used to implement section 399L(b) of the Public Health
    Service Act or section 1503 of the National Institutes of
    Health Revitalization Act of 1993, Public Law 103-43.
        Sec. 204. None of the funds appropriated in this Act for
    the National Institutes of Health and the Substance Abuse and
    Mental Health Services Administration shall be used to pay the
    salary of an individual, through a grant or other extramural
    mechanism, at a rate in excess of Executive Level I.
        Sec. 205. None of the funds appropriated in this Act may be
    expended pursuant to section 241 of the Public Health Service
    Act, except for funds specifically provided for in this Act, or
    for other taps and assessments made by any office located in
    the Department of Health and Human Services, prior to the
    Secretary's preparation and submission of a report to the
    Committee on Appropriations of the Senate and of the House
    detailing the planned uses of such funds.

                              (transfer of funds)

        Sec. 206. Not to exceed 1 percent of any discretionary
    funds (pursuant to the Balanced Budget and Emergency Deficit
    Control Act of 1985, as amended) which are appropriated for the
    current fiscal year for the Department of Health and Human
    Services in this Act may be transferred between appropriations,
    but no such appropriation shall be increased by more than 3
    percent by any such transfer: Provided, That the Appropriations
    Committees of both Houses of Congress are notified at least 15
    days in advance of any transfer.
        Sec. 207. The Director of the National Institutes of
    Health, jointly with the Director of the Office of AIDS
    Research, may transfer up to 3 percent among institutes,
    centers, and divisions from the total amounts identified by
    these two Directors as funding for research pertaining to the
    human immunodeficiency virus: Provided, That the Congress is
    promptly notified of the transfer.
        Sec. 208. Of the amounts made available in this Act for the
    National Institutes of Health, the amount for research related
    to the human immunodeficiency virus, as jointly determined by
    the Director of the National Institutes of Health and the
    Director of the Office of AIDS Research, shall be made
    available to the ``Office of AIDS Research'' account. The
    Director of the Office of AIDS Research shall transfer from
    such account amounts necessary to carry out section 2353(d)(3)
    of the Public Health Service Act.
        Sec. 209. None of the funds appropriated in this Act may be
    made available to any entity under title X of the Public Health
    Service Act unless the applicant for the award certifies to the
    Secretary that it encourages family participation in the
    decision of minors to seek family planning services and that it
    provides counseling to minors on how to resist attempts to
    coerce minors into engaging in sexual activities.
        Sec. 210. None of the funds appropriated by this Act
    (including funds appropriated to any trust fund) may be used to
    carry out the Medicare+Choice program if the Secretary denies
    participation in such program to an otherwise eligible entity
    (including a Provider Sponsored Organization) because the
    entity informs the Secretary that it will not provide, pay for,
    provide coverage of, or provide referrals for abortions:
    Provided, That the Secretary shall make appropriate prospective
    adjustments to the capitation payment to such an entity (based
    on an actuarially sound estimate of the expected costs of
    providing the service to such entity's enrollees): Provided
    further, That nothing in this section shall be construed to
    change the Medicare program's coverage for such services and a
    Medicare+Choice organization described in this section shall be
    responsible for informing enrollees where to obtain information
    about all Medicare covered services.
        Sec. 211. Notwithstanding any other provision of law, no
    provider of services under title X of the Public Health Service
    Act shall be exempt from any State law requiring notification
    or the reporting of child abuse, child molestation, sexual
    abuse, rape, or incest.
        Sec. 212. The Foreign Operations, Export Financing, and
    Related Programs Appropriations Act, 1990 (Public Law 101-167)
    is amended--
                (1) in section 599D (8 U.S.C. 1157 note)--
                        (A) in subsection (b)(3), by striking
                    ``1997, 1998, 1999, and 2000'' and inserting
                    ``1997, 1998, 1999, 2000 and 2001''; and
                        (B) in subsection (e), by striking
                    ``October 1, 2000'' each place it appears and
                    inserting ``October 1, 2001''; and
                (2) in section 599E (8 U.S.C. 1255 note) in
            subsection (b)(2), by striking ``September 30, 2000''
            and inserting ``September 30, 2001''.
        Sec. 213. None of the funds provided in this Act or in any
    other Act making appropriations for fiscal year 2001 may be
    used to administer or implement in Arizona or in the Kansas
    City, Missouri or in the Kansas City, Kansas area the Medicare
    Competitive Pricing Demonstration Project (operated by the
    Secretary of Health and Human Services).
        Sec. 214. (a) Except as provided by subsection (e) none of
    the funds appropriated by this Act may be used to withhold
    substance abuse funding from a State pursuant to section 1926
    of the Public Health Service Act (42 U.S.C. 300x-26) if such
    State certifies to the Secretary of Health and Human Services
    by March 1, 2001 that the State will commit additional State
    funds, in accordance with subsection (b), to ensure compliance
    with State laws prohibiting the sale of tobacco products to
    individuals under 18 years of age.
        (b) The amount of funds to be committed by a State under
    subsection (a) shall be equal to 1 percent of such State's
    substance abuse block grant allocation for each percentage
    point by which the State misses the retailer compliance rate
    goal established by the Secretary of Health and Human Services
    under section 1926 of such Act.
        (c) The State is to maintain State expenditures in fiscal
    year 2001 for tobacco prevention programs and for compliance
    activities at a level that is not less than the level of such
    expenditures maintained by the State for fiscal year 2000, and
    adding to that level the additional funds for tobacco
    compliance activities required under subsection (a). The State
    is to submit a report to the Secretary on all fiscal year 2000
    State expenditures and all fiscal year 2001 obligations for
    tobacco prevention and compliance activities by program
    activity by July 31, 2001.
        (d) The Secretary shall exercise discretion in enforcing
    the timing of the State obligation of the additional funds
    required by the certification described in subsection (a) as
    late as July 31, 2001.
        (e) None of the funds appropriated by this Act may be used
    to withhold substance abuse funding pursuant to section 1926
    from a territory that receives less than $1,000,000.
        Sec. 215. Section 448 of the Public Health Service Act (42
    U.S.C. 285g) is amended by inserting ``gynecologic health,''
    after ``with respect to''.
        Sec. 216. None of the funds appropriated under this Act
    shall be expended by the National Institutes of Health on a
    contract for the care of the 288 chimpanzees acquired by the
    National Institutes of Health from the Coulston Foundation,
    unless the contractor is accredited by the Association for the
    Assessment and Accreditation of Laboratory Animal Care
    International or has a Public Health Services assurance, and
    has not been charged multiple times with egregious violations
    of the Animal Welfare Act: Provided, That the requirements of
    section 481(A)(e)(1) shall not apply to funds awarded to
    nonhuman primate research facilities of special interest to
    NIH.
        Sec. 217. No grants may be awarded under the first
    paragraph under the heading ``Department of Health and Human
    Services, Health Resources and Services Administration, Health
    Resources and Services'' in chapter 4 of title II of the
    Emergency Supplemental Act, 2000 (Public Law 106-246, division
    B) until March 1, 2001.
        Sec. 218. (a) The second sentence of section 5948(d) of
    title 5, United States Code, is amended to read as follows:
    ``No agreement shall be entered into under this section later
    than September 30, 2005, nor shall any agreement cover a period
    of service extending beyond September 30, 2007.''.
        (b) Section 3 of the Federal Physicians Comparability
    Allowance Act of 1978 (5 U.S.C. 5948 note) is amended by
    striking ``September 30, 2002'' and inserting ``September 30,
    2007''.
        Sec. 219. (a) Congress makes the following findings:
                (1) Organ procurement organizations play an
            important role in the effort to increase organ donation
            in the United States.
                (2) The current process for the certification and
            recertification of organ procurement organizations
            conducted by the Department of Health and Human
            Services has created a level of uncertainty that is
            interfering with the effectiveness of organ procurement
            organizations in raising the level of organ donation.
                (3) The General Accounting Office, the Institute of
            Medicine, and the Harvard School of Public Health have
            identified substantial limitations in the organ
            procurement organization certification and
            recertification process and have recommended changes in
            that process.
                (4) The limitations in the recertification process
            include:
                        (A) An exclusive reliance on population-
                    based measures of performance that do not
                    account for the potential in the population for
                    organ donation and do not permit consideration
                    of other outcome and process standards that
                    would more accurately reflect the relative
                    capability and performance of each organ
                    procurement organization.
                        (B) A lack of due process to appeal to the
                    Secretary of Health and Human Services for
                    recertification on either substantive or
                    procedural grounds.
                (5) The Secretary of Health and Human Services has
            the authority under section 1138(b)(1)(A)(i) of the
            Social Security Act (42 U.S.C. 1320b-8(b)(1)(A)(i)) to
            extend the period for recertification of an organ
            procurement organization from 2 to 4 years on the basis
            of its past practices in order to avoid the
            inappropriate disruption of the nation's organ system.
                (6) The Secretary of Health and Human Services can
            use the extended period described in paragraph (5) for
            recertification of all organ procurement organizations
            to--
                        (A) develop improved performance measures
                    that would reflect organ donor potential and
                    interim outcomes, and to test these measures to
                    ensure that they accurately measure performance
                    differences among the organ procurement
                    organizations; and
                        (B) improve the overall certification
                    process by incorporating process as well as
                    outcome performance measures, and developing
                    equitable processes for appeals.
        (b) Section 371(b)(1) of the Public Health Service Act (42
    U.S.C. 273(b)(1)) is amended--
                (1) by redesignating subparagraphs (D) through (G)
            as subparagraphs (E) through (H), respectively;
                (2) by realigning the margin of subparagraph (F)
            (as so redesignated) so as to align with subparagraph
            (E) (as so redesignated); and
                (3) by inserting after subparagraph (C) the
            following:
                ``(D) notwithstanding any other provision of law,
            has met the other requirements of this section and has
            been certified or recertified by the Secretary within
            the previous 4-year period as meeting the performance
            standards to be a qualified organ procurement
            organization through a process that either--
                        ``(i) granted certification or
                    recertification within such 4-year period with
                    such certification or recertification in effect
                    as of January 1, 2000, and remaining in effect
                    through the earlier of--
                                ``(I) January 1, 2002; or
                                ``(II) the completion of
                            recertification under the requirements
                            of clause (ii); or
                        ``(ii) is defined through regulations that
                    are promulgated by the Secretary by not later
                    than January 1, 2002, that--
                                ``(I) require recertifications of
                            qualified organ procurement
                            organizations not more frequently than
                            once every 4 years;
                                ``(II) rely on outcome and process
                            performance measures that are based on
                            empirical evidence, obtained through
                            reasonable efforts, of organ donor
                            potential and other related factors in
                            each service area of qualified organ
                            procurement organizations;
                                ``(III) use multiple outcome
                            measures as part of the certification
                            process; and
                                ``(IV) provide for a qualified
                            organ procurement organization to
                            appeal a decertification to the
                            Secretary on substantive and procedural
                            grounds;''.
        Sec. 220. (a) In order for the Centers for Disease Control
    and Prevention to carry out international HIV/AIDS and other
    infectious disease, chronic and environmental disease, and
    other health activities abroad during fiscal year 2001, the
    Secretary of Health and Human Services is authorized to--
                (1) utilize the authorities contained in subsection
            2(c) of the State Department Basic Authorities Act of
            1956, as amended, subject to the limitations set forth
            in subsection (b), and
                (2) enter into reimbursable agreements with the
            Department of State using any funds appropriated to the
            Department of Health and Human Services, for the
            purposes for which the funds were appropriated in
            accordance with authority granted to the Secretary of
            Health and Human Services or under authority governing
            the activities of the Department of State.
        (b) In exercising the authority set forth in subsection
    (a)(1), the Secretary of Health and Human Services--
                (1) shall not award contracts for performance of an
            inherently governmental function; and
                (2) shall follow otherwise applicable Federal
            procurement laws and regulations to the maximum extent
            practicable.
        Sec. 221. Notwithstanding any other provision of law, the
    Director, National Institutes of Health, may enter into and
    administer a long-term lease for facilities for the purpose of
    providing laboratory, office and other space for biomedical and
    behavioral research at the Bayview Campus in Baltimore,
    Maryland: Provided, That the House and Senate Appropriations
    Committees will be notified of the terms and conditions of the
    lease upon its execution.
        Sec. 222. Of the funds appropriated in this Act for the
    National Institutes of Health, $5,800,000 shall be transferred
    to the Office of the Secretary, General Departmental Management
    to support the newly established Office for Human Research
    Protections.
        Sec. 223. Section 487E(a)(1) of the Public Health Service
    Act is amended by striking ``as employees of the National
    Institutes of Health''.
        Sec. 224. Notwithstanding any other provision of law
    relating to vacancies in offices for which appointments must be
    made by the President, including any time limitation on serving
    in an acting capacity, the Acting Director of the National
    Institutes of Health as of January 12, 2000, may serve in that
    position until a new Director of the National Institutes of
    Health is confirmed by the Senate.
        Sec. 225. The National Neuroscience Research Center to be
    constructed on the National Institutes of Health Bethesda
    campus is hereby named the John Edward Porter Neuroscience
    Research Center.
        This title may be cited as the ``Department of Health and
    Human Services Appropriations Act, 2001''.

                       TITLE III--DEPARTMENT OF EDUCATION

                                education reform

        For carrying out activities authorized by title IV of the
    Goals 2000: Educate America Act as in effect prior to September
    30, 2000, and sections 3122, 3132, 3136, and 3141, parts B, C,
    and D of title III, and section 10105 and part I of title X of
    the Elementary and Secondary Education Act of 1965,
    $1,880,710,000, of which $38,000,000 shall be for the Goals
    2000: Educate America Act, and of which $191,950,000 shall be
    for section 3122: Provided, That up to one-half of 1 percent of
    the amount available under section 3132 shall be set aside for
    the outlying areas, to be distributed on the basis of their
    relative need as determined by the Secretary in accordance with
    the purposes of the program: Provided further, That if any
    State educational agency does not apply for a grant under
    section 3132, that State's allotment under section 3131 shall
    be reserved by the Secretary for grants to local educational
    agencies in that State that apply directly to the Secretary
    according to the terms and conditions published by the
    Secretary in the Federal Register: Provided further, That with
    respect to all funds appropriated to carry out section 10901 et
    seq. in this Act, the Secretary shall strongly encourage
    applications for grants that are to be submitted jointly by a
    local educational agency (or a consortium of local educational
    agencies) and a community-based organization that has
    experience in providing before- and after-school services and
    all applications submitted to the Secretary shall contain
    evidence that the project contains elements that are designed
    to assist students in meeting or exceeding state and local
    standards in core academic subjects, as appropriate to the
    needs of participating children: Provided further, That
    $125,000,000, which shall become available on July 1, 2001, and
    remain available through September 30, 2002, shall be available
    to support activities under section 10105 of part A of title X
    of the Elementary and Secondary Education Act of 1965, of which
    up to 6 percent shall become available October 1, 2000, and be
    available for evaluation, technical assistance, school
    networking, peer review of applications, and program outreach
    activities: Provided further, That funds made available to
    local educational agencies under this section shall be used
    only for activities related to establishing smaller learning
    communities in high schools: Provided further, That $46,328,000
    of the funds available to carry out section 3136 of the
    Elementary and Secondary Education Act of 1965, $8,768,000 of
    the funds available to carry out part B of title III of that
    Act and $20,614,000 of the funds available to carry out part I
    of title X of that Act shall be available for the projects and
    in the amounts specified in the statement of the managers on
    the conference report accompanying this Act.

                        education for the disadvantaged

        For carrying out title I of the Elementary and Secondary
    Education Act of 1965, and section 418A of the Higher Education
    Act of 1965, $9,532,621,000, of which $2,731,921,000 shall
    become available on July 1, 2001, and shall remain available
    through September 30, 2002, and of which $6,758,300,000 shall
    become available on October 1, 2001 and shall remain available
    through September 30, 2002, for academic year 2001-2002:
    Provided, That $7,332,721,000 shall be available for basic
    grants under section 1124: Provided further, That $225,000,000
    of these funds shall be allocated among the States in the same
    proportion as funds are allocated among the States under
    section 1122, to carry out section 1116(c): Provided further,
    That 100 percent of these funds shall be allocated by states to
    local educational agencies for the purposes of carrying out
    section 1116(c): Provided further, That all local educational
    agencies receiving an allocation under the preceding proviso,
    and all other local educational agencies that are within a
    State that receives funds under part A of title I of the
    Elementary and Secondary Education Act of 1965 (other than a
    local educational agency within a State receiving a minimum
    grant under section 1124(d) or 1124A(a)(1)(B) of such Act),
    shall provide all students enrolled in a school identified
    under section 1116(c) with the option to transfer to another
    public school within the local educational agency, including a
    public charter school, that has not been identified for school
    improvement under section 1116(c), unless such option to
    transfer is prohibited by State law, or local law, which
    includes school board-approved local educational agency policy:
    Provided further, That if the local educational agency
    demonstrates to the satisfaction of the State educational
    agency that the local educational agency lacks the capacity to
    provide all students with the option to transfer to another
    public school, and after giving notice to the parents of
    children affected that it is not possible, consistent with
    State and local law, to accommodate the transfer request of
    every student, the local educational agency shall permit as
    many students as possible (who shall be selected by the local
    educational agency on an equitable basis) to transfer to a
    public school that has not been identified for school
    improvement under section 1116(c): Provided further, That up to
    $3,500,000 of these funds shall be available to the Secretary
    on October 1, 2000, to obtain updated local educational agency
    level census poverty data from the Bureau of the Census:
    Provided further, That $1,364,000,000 shall be available for
    concentration grants under section 1124A: Provided further,
    That grant awards under sections 1124 and 1124A of title I of
    the Elementary and Secondary Education Act of 1965 shall be not
    less than the greater of 100 percent of the amount each State
    and local educational agency received under this authority for
    fiscal year 2000 or the amount such State and local educational
    agency would receive if $6,883,503,000 for Basic Grants and
    $1,222,397,000 for Concentration Grants were allocated in
    accordance with section 1122(c)(3) of title I: Provided
    further, That notwithstanding any other provision of law, grant
    awards under section 1124A of title I of the Elementary and
    Secondary Education Act of 1965 shall be made to those local
    educational agencies that received a Concentration Grant under
    the Department of Education Appropriations Act, 2000, but are
    not eligible to receive such a grant for fiscal year 2001:
    Provided further, That the Secretary shall not take into
    account the hold harmless provisions in this section in
    determining State allocations under any other program
    administered by the Secretary in any fiscal year: Provided
    further, That $8,900,000 shall be available for evaluations
    under section 1501 and not more than $8,500,000 shall be
    reserved for section 1308, of which not more than $3,000,000
    shall be reserved for section 1308(d): Provided further, That
    $210,000,000 shall be available under section 1002(g)(2) to
    demonstrate effective approaches to comprehensive school reform
    to be allocated and expended in accordance with the
    instructions relating to this activity in the statement of the
    managers on the conference report accompanying Public Law 105-
    78 and in the statement of the managers on the conference
    report accompanying Public Law 105-277: Provided further, That
    in carrying out this initiative, the Secretary and the States
    shall support only approaches that show the most promise of
    enabling children served by title I to meet challenging State
    content standards and challenging State student performance
    standards based on reliable research and effective practices,
    and include an emphasis on basic academics and parental
    involvement.

                                   impact aid

        For carrying out programs of financial assistance to
    federally affected schools authorized by title VIII of the
    Elementary and Secondary Education Act of 1965, $993,302,000,
    of which $882,000,000 shall be for basic support payments under
    section 8003(b), $50,000,000 shall be for payments for children
    with disabilities under section 8003(d), $12,802,000 shall be
    for construction under section 8007, $40,500,000 shall be for
    Federal property payments under section 8002, and $8,000,000,
    to remain available until expended, shall be for facilities
    maintenance under section 8008: Provided, That $6,802,000 of
    the funds for section 8007 shall be available for the local
    educational agencies and in the amounts specified in the
    statement of the managers on the conference report accompanying
    this Act: Provided further, That from the amount appropriated
    for section 8002, the Secretary shall treat as timely filed,
    and shall process for payment, an application for a fiscal year
    1999 payment from Academy School District 20, Colorado, under
    that section if the Secretary has received that application not
    later than 30 days after the enactment of this Act: Provided
    further, That the Secretary of Education shall consider the
    local educational agency serving the Kadoka School District,
    35-1, in South Dakota, eligible for payments under section 8002
    for fiscal year 2001 and each succeeding fiscal year, with
    respect to land in Washabaugh and Jackson Counties, South
    Dakota, that is owned by the Department of Defense and used as
    a bombing range: Provided further, That from the amount
    appropriated for section 8002, the Secretary shall first
    increase the payment of any local educational agency that was
    denied funding or had its payment reduced under that section
    for fiscal year 1998 due to section 8002(b)(1)(C) to the amount
    that would have been made without the limitation of that
    section: Provided further, That from the amount appropriated
    for section 8002, $500,000 shall be for subsection 8002(j).

                          school improvement programs

        For carrying out school improvement activities authorized
    by titles II, IV, V-A and B, VI, IX, X, and XIII of the
    Elementary and Secondary Education Act of 1965 (``ESEA''); the
    McKinney-Vento Homeless Assistance Act; and the Civil Rights
    Act of 1964 and part B of title VIII of the Higher Education
    Amendments of 1998; $4,872,084,000, of which $2,403,750,000
    shall become available on July 1, 2001, and remain available
    through September 30, 2002, and of which $1,765,000,000 shall
    become available on October 1, 2001 and shall remain available
    through September 30, 2002 for academic year 2001-2002:
    Provided, That $485,000,000 shall be available for Eisenhower
    professional development State grants under part B of title II
    of the Elementary and Secondary Education Act of 1965: Provided
    further, That each local educational agency shall use funds in
    excess of the allocation it received under such part for the
    preceding fiscal year to improve teacher quality by reducing
    the percentage of teachers who do not have State certification
    or are certified through emergency or provisional means; are
    teaching out of field in some or all of the subject areas and
    grade levels in which they teach; or who lack sufficient
    content knowledge to teach effectively in the areas they teach
    to obtain that knowledge: Provided further, That the local
    educational agency may also use such excess funds for:
    activities authorized under section 2210 of the Elementary and
    Secondary Education Act of 1965; mentoring programs for new
    teachers; providing opportunities for teachers to attend multi-
    week institutes, such as those provided in the summer months,
    that provide intensive professional development in partnership
    with local educational agencies; and carrying out initiatives
    to promote the retention of highly qualified teachers who have
    a record of success in helping low-achieving students improve
    their academic success: Provided further, That each State
    educational agency may use such excess funds to carry out
    activities under section 2207 of the Elementary and Secondary
    Education Act of 1965: Provided further, That each State agency
    for higher education may use such excess funds to carry out
    activities under section 2211 of the Elementary and Secondary
    Education Act of 1965: Provided further, That both State
    educational agencies and State agencies for higher education
    may also use such excess funds for multi-week institutes, such
    as those provided in the summer months, that provide intensive
    professional development in partnership with local educational
    agencies; and grants to partnerships of such entities as local
    educational agencies, institutions of higher education, and
    private business, to recruit, and prepare, and provide
    professional development to, and help retain, school principals
    and superintendents, especially for such individuals who serve,
    or are preparing to serve, in high-poverty, low-performing
    schools and local educational agencies: Provided further, That
    such activities may be undertaken in consortium with other
    States: Provided further, That of the funds appropriated for
    part B of title II of the Elementary and Secondary Education
    Act of 1965, $45,000,000 shall be available to States and
    allocated in accordance with section 2202(b) of that Act
    (except that the requirements of section 2203 shall not apply):
    Provided further, That notwithstanding any other provision of
    law, each State shall use the amount made available under the
    preceding proviso to support efforts to meet the requirements
    for State eligibility for the Ed-Flex Partnership Act of 1999
    or the requirements under section 1111 of title I of the
    Elementary and Secondary Education Act of 1965: Provided
    further, That $44,000,000 shall be available for national
    activities under section 2102 of the Elementary and Secondary
    Education Act of 1965: Provided further, That of the amount
    available in the preceding proviso, $3,000,000 shall be made
    available to the Secretary for the Troops-to-Teachers Program
    for transfer to the Defense Activity for Non-Traditional
    Education Support of the Department of Defense: Provided
    further, That the funds transferred under the preceding proviso
    shall be used by the Secretary of Defense to administer the
    Troops-to-Teachers Program, including the selection of
    participants in the Program under the Troops-to-Teachers
    Program Act of 1999 (title XVII of Public Law 106-65; 20 U.S.C.
    9301 et seq.): Provided further, That for purposes of sections
    1702(b) and (c) of the Troops-to-Teachers Program Act of 1999,
    the Secretary of Education shall be the administering Secretary
    and may, at the Secretary's discretion, carry out the
    activities under section 1702(c) of that Act and retain a
    portion of the funds made available for the Troops-to-Teachers
    Program to carry out section 1702(b) and (c) of that Act:
    Provided further, That of the amount made available under this
    heading for national activities under section 2102 of the
    Elementary and Secondary Education Act of 1965, the Secretary
    is authorized to use a portion of such funds to carry out
    activities to improve the knowledge and skills of early
    childhood educators and caregivers who work in urban or rural
    communities with high concentrations of young children living
    in poverty: Provided further, That of the amount appropriated,
    $3,208,000,000 shall be for title VI of the Elementary and
    Secondary Education Act of 1965 and to carry out activities
    under part B of the Individuals with Disabilities Education Act
    (20 U.S.C. 1411 et seq.): Provided further, That of the amount
    made available for title VI, $1,623,000,000 shall be available,
    notwithstanding any other provision of law, in accordance with
    section 306 of this Act in order to reduce class size,
    particularly in the early grades, using highly qualified
    teachers to improve educational achievement for regular and
    special needs children: Provided further, That of the amount
    made available for title VI, $1,200,000,000 shall be available,
    notwithstanding any other provision of law, for grants for
    school repair and renovation, activities under part B of the
    Individuals with Disabilities Education Act (20 U.S.C. 1411 et
    seq.), and technology activities, in accordance with section
    321 of this Act: Provided further, That funds made available
    under this heading to carry out section 6301(b) of the
    Elementary and Secondary Education Act of 1965 shall be
    available for education reform projects that provide same
    gender schools and classrooms, consistent with applicable law:
    Provided further, That of the amount made available to carry
    out activities authorized under part C of title IX of the
    Elementary and Secondary Education Act of 1965, $1,000,000
    shall be for the Alaska Humanities Forum for operation of the
    Rose student exchange program and $1,000,000 shall be for the
    Alaska Native Heritage Center to support its program of
    cultural education activities: Provided further, That of the
    amount made available for subpart 2 of part A of title IV of
    the Elementary and Secondary Education Act of 1965,
    $10,000,000, to remain available until expended, shall be for
    Project School Emergency Response to Violence to provide
    education-related services to local educational agencies in
    which the learning environment has been disrupted due to a
    violent or traumatic crisis.

                               reading excellence

        For necessary expenses to carry out the Reading Excellence
    Act, $91,000,000, which shall become available on July 1, 2001
    and shall remain available through September 30, 2002 and
    $195,000,000 which shall become available on October 1, 2001
    and remain available through September 30, 2002.

                                indian education

        For expenses necessary to carry out, to the extent not
    otherwise provided, title IX, part A of the Elementary and
    Secondary Education Act of 1965, as amended, $115,500,000.

                       bilingual and immigrant education

        For carrying out, to the extent not otherwise provided,
    bilingual, foreign language and immigrant education activities
    authorized by parts A and C and section 7203 of title VII of
    the Elementary and Secondary Education Act of 1965,
    $460,000,000: Provided, That State educational agencies may use
    all, or any part of, their part C allocation for competitive
    grants to local educational agencies.

                               special education

        For carrying out the Individuals with Disabilities
    Education Act, $7,439,948,000, of which $2,090,452,000 shall
    become available for obligation on July 1, 2001, and shall
    remain available through September 30, 2002, and of which
    $5,072,000,000 shall become available on October 1, 2001 and
    shall remain available through September 30, 2002, for academic
    year 2001-2002: Provided, That $9,500,000 shall be for
    Recording for the Blind and Dyslexic to support the
    development, production, and circulation of recorded
    educational materials: Provided further, That $1,500,000 shall
    be for the recipient of funds provided by Public Law 105-78
    under section 687(b)(2)(G) of the Act to provide information on
    diagnosis, intervention, and teaching strategies for children
    with disabilities: Provided further, That $7,353,000 of the
    funds for section 672 of the Act shall be available for the
    projects and in the amounts specified in the statement of the
    managers on the conference report accompanying this Act.

                rehabilitation services and disability research

        For carrying out, to the extent not otherwise provided, the
    Rehabilitation Act of 1973, the Assistive Technology Act of
    1998, and the Helen Keller National Center Act, $2,805,339,000:
    Provided, That the funds provided for title I of the Assistive
    Technology Act of 1998 (``the AT Act'') shall be allocated
    notwithstanding section 105(b)(1) of the AT Act: Provided
    further, That each State shall be provided $50,000 for
    activities under section 102 of the AT Act: Provided further,
    That $15,000,000 shall be used to support grants for up to
    three years to States under title III of the AT Act, of which
    the Federal share shall not exceed 75 percent in the first
    year, 50 percent in the second year, and 25 percent in the
    third year, and that the requirements in section 301(c)(2) and
    section 302 of that Act shall not apply to such grants:
    Provided further, That $4,600,000 of the funds for section 303
    of the Rehabilitation Act of 1973 shall be available for the
    projects and in the amounts specified in the statement of the
    managers on the conference report accompanying this Act:
    Provided further, That $400,000 of the funds for title II of
    the Rehabilitation Act of 1973 shall be for the Cerebral Palsy
    Research Foundation in Wichita, Kansas for the establishment of
    a Rehabilitation Research and Training Center to study and
    recommend incentives for employers to hire persons with
    significant disabilities.

               Special Institutions for Persons With Disabilities

                     american printing house for the blind

        For carrying out the Act of March 3, 1879, as amended (20
    U.S.C. 101 et seq.), $12,000,000.

                   national technical institute for the deaf

        For the National Technical Institute for the Deaf under
    titles I and II of the Education of the Deaf Act of 1986 (20
    U.S.C. 4301 et seq.), $53,376,000, of which $5,376,000 shall be
    for construction and shall remain available until expended:
    Provided, That from the total amount available, the Institute
    may at its discretion use funds for the endowment program as
    authorized under section 207.

                              gallaudet university

        For the Kendall Demonstration Elementary School, the Model
    Secondary School for the Deaf, and the partial support of
    Gallaudet University under titles I and II of the Education of
    the Deaf Act of 1986 (20 U.S.C. 4301 et seq.), $89,400,000:
    Provided, That from the total amount available, the University
    may at its discretion use funds for the endowment program as
    authorized under section 207.

                         vocational and adult education

        For carrying out, to the extent not otherwise provided, the
    Carl D. Perkins Vocational and Technical Education Act, the
    Adult Education and Family Literacy Act, and title VIII-D of
    the Higher Education Act of 1965, as amended, and Public Law
    102-73, $1,825,600,000, of which $1,000,000 shall remain
    available until expended, and of which $1,028,000,000 shall
    become available on July 1, 2001 and shall remain available
    through September 30, 2002 and of which $791,000,000 shall
    become available on October 1, 2001 and shall remain available
    through September 30, 2002: Provided, That of the amounts made
    available for the Carl D. Perkins Vocational and Technical
    Education Act, $5,600,000 shall be for tribally controlled
    postsecondary vocational and technical institutions under
    section 117: Provided further, That $9,000,000 shall be for
    carrying out section 118 of such Act: Provided further, That of
    the amounts made available for the Carl D. Perkins Vocational
    and Technical Education Act, $5,000,000 shall be for
    demonstration activities authorized by section 207: Provided
    further, That of the amount provided for Adult Education State
    Grants, $70,000,000 shall be made available for integrated
    English literacy and civics education services to immigrants
    and other limited English proficient populations: Provided
    further, That of the amount reserved for integrated English
    literacy and civics education, notwithstanding section 211 of
    the Adult Education and Family Literacy Act, 65 percent shall
    be allocated to States based on a State's absolute need as
    determined by calculating each State's share of a 10-year
    average of the Immigration and Naturalization Service data for
    immigrants admitted for legal permanent residence for the 10
    most recent years, and 35 percent allocated to States that
    experienced growth as measured by the average of the 3 most
    recent years for which Immigration and Naturalization Service
    data for immigrants admitted for legal permanent residence are
    available, except that no State shall be allocated an amount
    less than $60,000: Provided further, That of the amounts made
    available for the Adult Education and Family Literacy Act,
    $14,000,000 shall be for national leadership activities under
    section 243 and $6,500,000 shall be for the National Institute
    for Literacy under section 242: Provided further, That
    $22,000,000 shall be for Youth Offender Grants, of which
    $5,000,000 shall be used in accordance with section 601 of
    Public Law 102-73 as that section was in effect prior to the
    enactment of Public Law 105-220.

                          student financial assistance

        For carrying out subparts 1, 3 and 4 of part A, section
    428K, part C and part E of title IV of the Higher Education Act
    of 1965, as amended, $10,674,000,000, which shall remain
    available through September 30, 2002.
        The maximum Pell Grant for which a student shall be
    eligible during award year 2001-2002 shall be $3,750: Provided,
    That notwithstanding section 401(g) of the Act, if the
    Secretary determines, prior to publication of the payment
    schedule for such award year, that the amount included within
    this appropriation for Pell Grant awards in such award year,
    and any funds available from the fiscal year 2000 appropriation
    for Pell Grant awards, are insufficient to satisfy fully all
    such awards for which students are eligible, as calculated
    under section 401(b) of the Act, the amount paid for each such
    award shall be reduced by either a fixed or variable
    percentage, or by a fixed dollar amount, as determined in
    accordance with a schedule of reductions established by the
    Secretary for this purpose.

                 federal family education loan program account

        For Federal administrative expenses to carry out guaranteed
    student loans authorized by title IV, part B, of the Higher
    Education Act of 1965, as amended, $48,000,000.

                                higher education

        For carrying out, to the extent not otherwise provided,
    section 121 and titles II, III, IV, V, VI, and VII of the
    Higher Education Act of 1965, as amended, section 1543 of the
    Higher Education Amendments of 1992 and title VIII of the
    Higher Education Amendments of 1998, and the Mutual Educational
    and Cultural Exchange Act of 1961, $1,911,710,000, of which
    $10,000,000 for interest subsidies authorized by section 121 of
    the Higher Education Act of 1965, shall remain available until
    expended: Provided, That $10,000,000, to remain available
    through September 30, 2002, shall be available to fund
    fellowships for academic year 2002-2003 under part A, subpart 1
    of title VII of said Act, under the terms and conditions of
    part A, subpart 1: Provided further, That $3,000,000 is for
    data collection and evaluation activities for programs under
    the Higher Education Act of 1965, including such activities
    needed to comply with the Government Performance and Results
    Act of 1993: Provided further, That $15,000,000 shall be
    available for tribally controlled colleges and universities
    under section 316 of the Higher Education Act of 1965, of which
    $5,000,000 shall be used for construction and renovation:
    Provided further, That $250,000 shall be for the Web-Based
    Education Commission to continue activities authorized under
    part J of title VIII of the Higher Education Amendments of
    1998: Provided further, That $115,487,000 of the funds for part
    B of title VII of the Higher Education Act of 1965 shall be
    available for the projects and in the amounts specified in the
    statement of the managers on the conference report accompanying
    this Act.

                               howard university

        For partial support of Howard University (20 U.S.C. 121 et
    seq.), $232,474,000, of which not less than $3,600,000 shall be
    for a matching endowment grant pursuant to the Howard
    University Endowment Act (Public Law 98-480) and shall remain
    available until expended.

             college housing and academic facilities loans program

        For Federal administrative expenses authorized under
    section 121 of the Higher Education Act of 1965, $762,000 to
    carry out activities related to existing facility loans entered
    into under the Higher Education Act of 1965.

      historically black college and university capital financing program
                                    account

        The total amount of bonds insured pursuant to section 344
    of title III, part D of the Higher Education Act of 1965 shall
    not exceed $357,000,000, and the cost, as defined in section
    502 of the Congressional Budget Act of 1974, of such bonds
    shall not exceed zero.
        For administrative expenses to carry out the Historically
    Black College and University Capital Financing Program entered
    into pursuant to title III, part D of the Higher Education Act
    of 1965, as amended, $208,000.

                education research, statistics, and improvement

        For carrying out activities authorized by the Educational
    Research, Development, Dissemination, and Improvement Act of
    1994, including part E; the National Education Statistics Act
    of 1994, including sections 411 and 412; section 2102 of title
    II, parts A, B, K and L and sections 10102 and 10601 of title
    X, and part C of title XIII of the Elementary and Secondary
    Education Act of 1965, as amended, and title VI of Public Law
    103-227, $732,721,000: Provided, That of the funds appropriated
    for part A of title X of the Elementary and Secondary Education
    Act of 1965, as amended, $5,000,000 shall be made available for
    a high school reform program of grants to State educational
    agencies to improve academic performance and provide technical
    skills training: Provided further, That of the funds
    appropriated for part A of title X of the Elementary and
    Secondary Education Act of 1965, as amended, $5,000,000 shall
    be made available to carry out part L of title X of the Act:
    Provided further, That of the amount available for part A of
    title X of the Elementary and Secondary Education Act of 1965,
    as amended, $5,000,000 shall be available for grants to State
    and local educational agencies, in collaboration with other
    agencies and organizations, for school dropout prevention
    programs designed to address the needs of populations or
    communities with the highest dropout rates: Provided further,
    That of the amount made available for part A of title X of the
    Elementary and Secondary Education Act of 1965, as amended,
    $50,000,000 shall be made available to enable the Secretary of
    Education to award grants to develop, implement, and strengthen
    programs to teach American history (not social studies) as a
    separate subject within school curricula: Provided further,
    That $53,000,000 of the amount available for the national
    education research institutes shall be allocated
    notwithstanding section 912(m)(1)(B-F) and subparagraphs (B)
    and (C) of section 931(c)(2) of Public Law 103-227 and
    $20,000,000 of that $53,000,000 shall be made available for the
    Interagency Education Research Initiative: Provided further,
    That of the funds appropriated for part A of title X of the
    Elementary and Secondary Education Act, as amended, $50,000,000
    shall be available to demonstrate effective approaches to
    comprehensive school reform, to be allocated and expended in
    accordance with the instructions relating to this activity in
    the statement of managers on the conference report accompanying
    Public Law 105-78 and in the statement of the managers on the
    conference report accompanying Public Law 105-277: Provided
    further, That the funds made available for comprehensive school
    reform shall become available on July 1, 2001, and remain
    available through September 30, 2002, and in carrying out this
    initiative, the Secretary and the States shall support only
    approaches that show the most promise of enabling children to
    meet challenging State content standards and challenging State
    student performance standards based on reliable research and
    effective practices, and include an emphasis on basic academics
    and parental involvement: Provided further, That $139,624,000
    of the funds for section 10101 of the Elementary and Secondary
    Education Act of 1965 shall be available for the projects and
    in the amounts specified in the statement of the managers on
    the conference report accompanying this Act: Provided further,
    That of the funds appropriated under section 10601 of title X
    of the Elementary and Secondary Education Act of 1965, as
    amended, $2,000,000 shall be used to conduct a violence
    prevention demonstration program: Provided further, That of the
    funds available for section 10601 of title X of the Elementary
    and Secondary Education Act of 1965, as amended, $150,000 shall
    be awarded to the Center for Educational Technologies to
    complete production and distribution of an effective CD-ROM
    product that would complement the ``We the People: The Citizen
    and the Constitution'' curriculum: Provided further, That, of
    the funds for title VI of Public Law 103-227 and
    notwithstanding the provisions of section 601(c)(1)(C) of that
    Act, $1,200,000 shall be available to the Center for Civic
    Education to conduct a civic education program with Northern
    Ireland and the Republic of Ireland and, consistent with the
    civics and Government activities authorized in section
    601(c)(3) of Public Law 103-227, to provide civic education
    assistance to democracies in developing countries. The term
    ``developing countries'' shall have the same meaning as the
    term ``developing country'' in the Education for the Deaf Act.

                            Departmental Management

                             program administration

        For carrying out, to the extent not otherwise provided, the
    Department of Education Organization Act, including rental of
    conference rooms in the District of Columbia and hire of two
    passenger motor vehicles, $413,184,000.

                            office for civil rights

        For expenses necessary for the Office for Civil Rights, as
    authorized by section 203 of the Department of Education
    Organization Act, $76,000,000.

                        office of the inspector general

        For expenses necessary for the Office of the Inspector
    General, as authorized by section 212 of the Department of
    Education Organization Act, $36,500,000.

                               GENERAL PROVISIONS

        Sec. 301. No funds appropriated in this Act may be used for
    the transportation of students or teachers (or for the purchase
    of equipment for such transportation) in order to overcome
    racial imbalance in any school or school system, or for the
    transportation of students or teachers (or for the purchase of
    equipment for such transportation) in order to carry out a plan
    of racial desegregation of any school or school system.
        Sec. 302. None of the funds contained in this Act shall be
    used to require, directly or indirectly, the transportation of
    any student to a school other than the school which is nearest
    the student's home, except for a student requiring special
    education, to the school offering such special education, in
    order to comply with title VI of the Civil Rights Act of 1964.
    For the purpose of this section an indirect requirement of
    transportation of students includes the transportation of
    students to carry out a plan involving the reorganization of
    the grade structure of schools, the pairing of schools, or the
    clustering of schools, or any combination of grade
    restructuring, pairing or clustering. The prohibition described
    in this section does not include the establishment of magnet
    schools.
        Sec. 303. No funds appropriated under this Act may be used
    to prevent the implementation of programs of voluntary prayer
    and meditation in the public schools.

                              (transfer of funds)

        Sec. 304. Not to exceed 1 percent of any discretionary
    funds (pursuant to the Balanced Budget and Emergency Deficit
    Control Act of 1985, as amended) which are appropriated for the
    Department of Education in this Act may be transferred between
    appropriations, but no such appropriation shall be increased by
    more than 3 percent by any such transfer: Provided, That the
    Appropriations Committees of both Houses of Congress are
    notified at least 15 days in advance of any transfer.
        Sec. 305. The Comptroller General of the United States
    shall evaluate the extent to which funds made available under
    part A of title I of the Elementary and Secondary Education Act
    of 1965 are allocated to schools and local educational agencies
    with the greatest concentrations of school-age children from
    low-income families, the extent to which allocations of such
    funds adjust to shifts in concentrations of pupils from low-
    income families in different regions, States, and substate
    areas, the extent to which the allocation of such funds
    encourages the targeting of State funds to areas with higher
    concentrations of children from low-income families, and the
    implications of current distribution methods for such funds,
    shall make formula and other policy recommendations to improve
    the targeting of such funds to more effectively serve low-
    income children in both rural and urban areas, and shall
    prepare interim and final reports based on the results of the
    study, to be submitted to Congress not later than February 1,
    2001, and April 1, 2001.
        Sec. 306. (a) From the amount appropriated for title VI of
    the Elementary and Secondary Education Act of 1965 in
    accordance with this section, the Secretary of Education--
                (1) shall make available a total of $6,000,000 to
            the Secretary of the Interior (on behalf of the Bureau
            of Indian Affairs) and the outlying areas for
            activities under this section; and
                (2) shall allocate the remainder by providing each
            State the same percentage of that remainder as it
            received of the funds allocated to States under section
            307(a)(2) of the Department of Education Appropriations
            Act, 1999.
        (b)(1) Each State that receives funds under this section
    shall distribute 100 percent of such funds to local educational
    agencies, of which--
                (A) 80 percent of such amount shall be allocated to
            such local educational agencies in proportion to the
            number of children, aged 5 to 17, who reside in the
            school district served by such local educational agency
            from families with incomes below the poverty line (as
            defined by the Office of Management and Budget and
            revised annually in accordance with section 673(2) of
            the Community Services Block Grant Act (42 U.S.C.
            9902(2))) applicable to a family of the size involved
            for the most recent fiscal year for which satisfactory
            data are available compared to the number of such
            individuals who reside in the school districts served
            by all the local educational agencies in the State for
            that fiscal year; and
                (B) 20 percent of such amount shall be allocated to
            such local educational agencies in accordance with the
            relative enrollments of children, aged 5 to 17, in
            public and private nonprofit elementary and secondary
            schools within the boundaries of such agencies.
        (2) Notwithstanding paragraph (1), if the award to a local
    educational agency under this section is less than the starting
    salary for a new fully qualified teacher in that agency, who is
    certified within the State (which may include certification
    through State or local alternative routes), has a baccalaureate
    degree, and demonstrates the general knowledge, teaching
    skills, and subject matter knowledge required to teach in his
    or her content areas, that agency may use funds under this
    section to (A) help pay the salary of a full- or part-time
    teacher hired to reduce class size, which may be in combination
    with other Federal, State, or local funds; or (B) pay for
    activities described in subsection (c)(2)(A)(iii) which may be
    related to teaching in smaller classes.
        (c)(1) The basic purpose and intent of this section is to
    reduce class size with fully qualified teachers. Each local
    educational agency that receives funds under this section shall
    use such funds to carry out effective approaches to reducing
    class size with fully qualified teachers who are certified
    within the State, including teachers certified through State or
    local alternative routes, and who demonstrate competency in the
    areas in which they teach, to improve educational achievement
    for both regular and special needs children, with particular
    consideration given to reducing class size in the early
    elementary grades for which some research has shown class size
    reduction is most effective.
        (2)(A) Each such local educational agency may use funds
    under this section for--
                (i) recruiting (including through the use of
            signing bonuses, and other financial incentives),
            hiring, and training fully qualified regular and
            special education teachers (which may include hiring
            special education teachers to team-teach with regular
            teachers in classrooms that contain both children with
            disabilities and non-disabled children) and teachers of
            special-needs children who are certified within the
            State, including teachers certified through State or
            local alternative routes, have a baccalaureate degree
            and demonstrate the general knowledge, teaching skills,
            and subject matter knowledge required to teach in their
            content areas;
                (ii) testing new teachers for academic content
            knowledge and to meet State certification requirements
            that are consistent with title II of the Higher
            Education Act of 1965; and
                (iii) providing professional development (which may
            include such activities as those described in section
            2210 of the Elementary and Secondary Education Act of
            1965, opportunities for teachers to attend multi-week
            institutes, such as those made available during the
            summer months that provide intensive professional
            development in partnership with local educational
            agencies and initiatives that promote retention and
            mentoring), to teachers, including special education
            teachers and teachers of special-needs children, in
            order to meet the goal of ensuring that all
            instructional staff have the subject matter knowledge,
            teaching knowledge, and teaching skills necessary to
            teach effectively in the content area or areas in which
            they provide instruction, consistent with title II of
            the Higher Education Act of 1965.
        (B)(i) Except as provided under clause (ii), a local
    educational agency may use not more than a total of 25 percent
    of the award received under this section for activities
    described in clauses (ii) and (iii) of subparagraph (A).
                (ii) A local educational agency in which 10 percent
            or more of teachers in elementary schools, as defined
            by section 14101(14) of the Elementary and Secondary
            Education Act of 1965, have not met applicable State
            and local certification requirements (including
            certification through State or local alternative
            routes), or if such requirements have been waived, may
            use more than 25 percent of the funds it receives under
            this section for activities described in subparagraph
            (A)(iii) to help teachers who are not certified by the
            State become certified, including through State or
            local alternative routes, or to help teachers affected
            by class size reduction who lack sufficient content
            knowledge to teach effectively in the areas they teach
            to obtain that knowledge, if the local educational
            agency notifies the State educational agency of the
            percentage of the funds that it will use for the
            purpose described in this clause.
        (C) A local educational agency that has already reduced
    class size in the early grades to 18 or less children (or has
    already reduced class size to a State or local class size
    reduction goal that was in effect on the day before the
    enactment of the Department of Education Appropriations Act,
    2000, if that State or local educational agency goal is 20 or
    fewer children) may use funds received under this section--
                (i) to make further class size reductions in grades
            kindergarten through 3;
                (ii) to reduce class size in other grades; or
                (iii) to carry out activities to improve teacher
            quality including professional development.
        (D) If a local educational agency has already reduced class
    size in the early grades to 18 or fewer children and intends to
    use funds provided under this section to carry out professional
    development activities, including activities to improve teacher
    quality, then the State shall make the award under subsection
    (b) to the local educational agency.
        (3) Each such agency shall use funds under this section
    only to supplement, and not to supplant, State and local funds
    that, in the absence of such funds, would otherwise be spent
    for activities under this section.
        (4) No funds made available under this section may be used
    to increase the salaries or provide benefits, other than
    participation in professional development and enrichment
    programs, to teachers who are not hired under this section.
    Funds under this section may be used to pay the salary of
    teachers hired under section 307 of the Department of Education
    Appropriations Act, 1999, or under section 310 of the
    Department of Education Appropriations Act, 2000.
        (d)(1) Each State receiving funds under this section shall
    report on activities in the State under this section,
    consistent with section 6202(a)(2) of the Elementary and
    Secondary Education Act of 1965.
        (2) Each State and local educational agency receiving funds
    under this section shall publicly report to parents on its
    progress in reducing class size, increasing the percentage of
    classes in core academic areas taught by fully qualified
    teachers who are certified within the State and demonstrate
    competency in the content areas in which they teach, and on the
    impact that hiring additional highly qualified teachers and
    reducing class size, has had, if any, on increasing student
    academic achievement.
        (3) Each school receiving funds under this section shall
    provide to parents, upon request, the professional
    qualifications of their child's teacher.
        (e) If a local educational agency uses funds made available
    under this section for professional development activities, the
    agency shall ensure for the equitable participation of private
    nonprofit elementary and secondary schools in such activities.
    Section 6402 of the Elementary and Secondary Education Act of
    1965 shall not apply to other activities under this section.
        (f) A local educational agency that receives funds under
    this section may use not more than 3 percent of such funds for
    local administrative costs.
        (g) Each local educational agency that desires to receive
    funds under this section shall include in the application
    required under section 6303 of the Elementary and Secondary
    Education Act of 1965 a description of the agency's program to
    reduce class size by hiring additional highly qualified
    teachers.
        (h) No funds under this section may be used to pay the
    salary of any teacher hired with funds under section 307 of the
    Department of Education Appropriations Act, 1999, unless, by
    the start of the 2001-2002 school year, the teacher is
    certified within the State (which may include certification
    through State or local alternative routes) and demonstrates
    competency in the subject areas in which he or she teaches.
        (i) Not later than 30 days after the date of the enactment
    of this Act, the Secretary shall provide specific notification
    to each local educational agency eligible to receive funds
    under this part regarding the flexibility provided under
    subsection (c)(2)(B)(ii) and the ability to use such funds to
    carry out activities described in subsection (c)(2)(A)(iii).
        Sec. 307. Section 412 of the National Education Statistics
    Act of 1994 (Public Law 103-382) is amended--
                (1) in subsection 412(c)(1), after ``period of''
            and before ``years,'', by striking ``3'' and inserting
            ``4''; and
                (2) after ``expiration of such term.'', by adding
            the following new subsection:
                ``(4) Conforming provision.--Members of the Board
            previously granted 3 year terms, whose terms are in
            effect on the date of enactment of the Department of
            Education Appropriations Act, 2001, shall have their
            terms extended by one year.''.
        Sec. 308. (a) Section 435(a)(2) of the Higher Education Act
    of 1965 (20 U.S.C. 1085(a)(2)) is amended by adding at the end
    thereof the following new subparagraph:
        ``(D) Notwithstanding the first sentence of subparagraph
    (A), the Secretary shall restore the eligibility to participate
    in a program under subpart 1 of part A, part B, or part D of an
    institution that did not appeal its loss of eligibility within
    30 days of receiving notification if the Secretary determines,
    on a case-by-case basis, that the institution's failure to
    appeal was substantially justified under the circumstances, and
    that--
                ``(i) the institution made a timely request that
            the appropriate guaranty agency correct errors in the
            draft data used to calculate the institution's cohort
            default rate;
                ``(ii) the guaranty agency did not correct the
            erroneous data in a timely fashion; and
                ``(iii) the institution would have been eligible if
            the erroneous data had been corrected by the guaranty
            agency.''.
        (b) The amendment made by subsection (a) of this section
    shall be effective for cohort default rate calculations for
    fiscal years 1997 and 1998.
        Sec. 309. Section 439(r)(2) of the Higher Education Act of
    1965 (20 U.S.C. 1087-2(r)(2)) is amended--
                (1) in clause (A)(i), by striking ``auditors and
            examiners'' and inserting ``and fix the compensation of
            such auditors and examiners as may be necessary''; and
                (2) by inserting at the end of subparagraph (E) the
            following new subparagraph:
                        ``(F) Compensation of auditors and
                    examiners.--
                                ``(i) Rates of pay.--Rates of basic
                            pay for all auditors and examiners
                            appointed pursuant to subparagraph (A)
                            may be set and adjusted by the
                            Secretary of the Treasury without
                            regard to the provisions of chapter 51
                            or subchapter III of chapter 53 of
                            title 5, United States Code.
                                ``(ii) Comparability.--
                                        ``(I) In general.--Subject
                                    to section 5373 of title 5,
                                    United States Code, the
                                    Secretary of the Treasury may
                                    provide additional compensation
                                    and benefits to auditors and
                                    examiners appointed pursuant to
                                    subparagraph (A) if the same
                                    type of compensation or
                                    benefits are then being
                                    provided by any agency referred
                                    to in section 1206 of the
                                    Financial Institutions Reform,
                                    Recovery, and Enforcement Act
                                    of 1989 (12 U.S.C. 1833b) or,
                                    if not then being provided,
                                    could be provided by such an
                                    agency under applicable
                                    provisions of law, rule, or
                                    regulation.
                                        ``(II) Consultation.--In
                                    setting and adjusting the total
                                    amount of compensation and
                                    benefits for auditors and
                                    examiners appointed pursuant to
                                    subparagraph (A), the Secretary
                                    of the Treasury shall consult
                                    with, and seek to maintain
                                    comparability with, the
                                    agencies referred to in section
                                    1206 of the Financial
                                    Institutions Reform, Recovery,
                                    and Enforcement Act of 1989 (12
                                    U.S.C. 1833b).''.
        Sec. 310. Section 117(i) of the Carl D. Perkins Vocational
    and Technical Education Act of 1998 (20 U.S.C. 2327(i)) is
    amended by inserting ``such sums as may be necessary for''
    before ``each of the 4 succeeding fiscal years.''.
        Sec. 311. Section 432(m)(1) of the Higher Education Act of
    1965 (20 U.S.C. 1082(m)(1)) is amended--
                (1) by striking clause (iv) of subparagraph (D);
            and
                (2) by adding at the end the following new
            subparagraph:
                        ``(E) Perfection of security interests in
                    student loans.--
                                ``(i) In general.--Notwithstanding
                            the provisions of any State law to the
                            contrary, including the Uniform
                            Commercial Code as in effect in any
                            State, a security interest in loans
                            made under this part, on behalf of any
                            eligible lender (as defined in section
                            435(d)) shall attach, be perfected, and
                            be assigned priority in the manner
                            provided by the applicable State's law
                            for perfection of security interests in
                            accounts, as such law may be amended
                            from time to time (including applicable
                            transition provisions). If any such
                            State's law provides for a statutory
                            lien to be created in such loans, such
                            statutory lien may be created by the
                            entity or entities governed by such
                            State law in accordance with the
                            applicable statutory provisions that
                            created such a statutory lien.
                                ``(ii) Collateral description.--In
                            addition to any other method for
                            describing collateral in a legally
                            sufficient manner permitted under the
                            laws of the State, the description of
                            collateral in any financing statement
                            filed pursuant to this subparagraph
                            shall be deemed legally sufficient if
                            it lists such loans, or refers to
                            records (identifying such loans)
                            retained by the secured party or any
                            designee of the secured party
                            identified in such financing statement,
                            including the debtor or any loan
                            servicer.
                                ``(iii) Sales.--Notwithstanding
                            clauses (i) and (ii) and any provisions
                            of any State law to the contrary, other
                            than any such State's law providing for
                            creation of a statutory lien, an
                            outright sale of loans made under this
                            part shall be effective and perfected
                            automatically upon attachment as
                            defined in the Uniform Commercial Code
                            of such State.''.
        Sec. 312. Section 435(a)(5) of the Higher Education Act of
    1965 (20 U.S.C. 1085(a)(5)) is amended--
                (1) in subparagraph (A)(i), by striking ``July 1,
            2002,'' and inserting ``July 1, 2004,'';
                (2) in subparagraph (B), by striking ``1999, 2000,
            and 2001'' and inserting ``1999 through 2003''.
        Sec. 313. From the amounts made available for the ``Fund
    for the Improvement of Education'' under the heading
    ``Education Research, Statistics, and Improvement'',
    $10,000,000, to remain available until expended, shall be
    available to the Secretary of Education to be transferred to
    the Secretary of the Interior for an award to the National
    Constitution Center for construction activities authorized
    under Public Law 100-433.
        Sec. 314. Section 4116(b)(4) of the Elementary and
    Secondary Education Act of 1965 is amended by striking
    subparagraph (D) and inserting in lieu thereof: ``(D) the
    development and implementation of character education and
    training programs that reflect the values of parents, teachers,
    and local communities, and incorporate elements of good
    character, including honesty, citizenship, courage, justice,
    respect, personal responsibility, and trustworthiness; and''.
        Sec. 315. The Secretary of Education shall review the
    nursing program operated by Graceland University in Lamoni,
    Iowa, and may exercise the waiver authority provided in section
    102(a)(3)(B) of the Higher Education Act of 1965, without
    regard to the provisions of 34 CFR 600.7(b)(3)(ii), if the
    Secretary determines that such a waiver is appropriate.
        Sec. 316. Section 415 of the Higher Education Act of 1965
    is amended--
                (1) in section 415A(a)(2), by striking ``section
            415F'' and inserting ``section 415E'';
                (2) in section 415E, by striking 415E(c) and
            inserting in lieu thereof the following:
        ``(c) Authorized Activities.--Each State receiving a grant
    under this section may use the grant funds for--
                ``(1) making awards that--
                        ``(A) supplement grants received under
                    section 415C(b)(2) by eligible students who
                    demonstrate financial need; or
                        ``(B) provide grants under section
                    415C(b)(2) to additional eligible students who
                    demonstrate financial need;
                ``(2) providing scholarships for eligible
            students--
                        ``(A) who demonstrate financial need; and
                        ``(B) who--
                                ``(i) desire to enter a program of
                            study leading to a career in--
                                        ``(I) information
                                    technology;
                                        ``(II) mathematics,
                                    computer science, or
                                    engineering;
                                        ``(III) teaching; or
                                        ``(IV) another field
                                    determined by the State to be
                                    critical to the State's
                                    workforce needs; or
                                ``(ii) demonstrate merit or
                            academic achievement; and
                ``(3) making awards that--
                        ``(A) supplement community service work-
                    study awards received under section 415C(b)(2)
                    by eligible students who demonstrate financial
                    need; or
                        ``(B) provide community service work-study
                    awards under section 415C(b)(2) to additional
                    eligible students who demonstrate financial
                    need.''.
                (3) in section 415E, adding at the end the
            following new subsections:
        ``(f) Special Rule.--Notwithstanding subsection (d), for
    purposes of determining a State's share of the cost of the
    authorized activities described in subsection (c), the State
    shall consider only those expenditures from non-Federal sources
    that exceed its total expenditures for need-based grants,
    scholarships, and work-study assistance for fiscal year 1999
    (including any such assistance provided under this subpart).
        ``(g) Use of Funds for Administrative Costs Prohibited.--A
    State receiving a grant under this section shall not use any of
    the grant funds to pay administrative costs associated with any
    of the authorized activities described in subsection (c).''.
        Sec. 317. (a) Section 402D of the Higher Education Act of
    1965 (20 U.S.C. 1070a-14) is amended--
                (1) by redesignating subsection (c) as subsection
            (d); and
                (2) by inserting after subsection (b) the following
            new subsection:
        ``(c) Special Rule.--
                ``(1) Use for student aid.--A recipient of a grant
            that undertakes any of the permissible services
            identified in subsection (b) may, in addition, use such
            funds to provide grant aid to students. A grant
            provided under this paragraph shall not exceed the
            maximum appropriated Pell Grant or, be less than the
            minimum appropriated Pell Grant, for the current
            academic year. In making grants to students under this
            subsection, an institution shall ensure that adequate
            consultation takes place between the student support
            service program office and the institution's financial
            aid office.
                ``(2) Eligible students.--For purposes of receiving
            grant aid under this subsection, eligible students
            shall be current participants in the student support
            services program offered by the institution and be--
                        ``(A) students who are in their first 2
                    years of postsecondary education and who are
                    receiving Federal Pell Grants under subpart 1;
                    or
                        ``(B) students who have completed their
                    first 2 years of postsecondary education and
                    who are receiving Federal Pell Grants under
                    subpart 1 if the institution demonstrates to
                    the satisfaction of the Secretary that--
                                ``(i) these students are at high
                            risk of dropping out; and
                                ``(ii) it will first meet the needs
                            of all its eligible first- and second-
                            year students for services under this
                            paragraph.
                ``(3) Determination of need.--A grant provided to a
            student under paragraph (1) shall not be considered in
            determining that student's need for grant or work
            assistance under this title, except that in no case
            shall the total amount of student financial assistance
            awarded to a student under this title exceed that
            student's cost of attendance, as defined in section
            472.
                ``(4) Matching required.--A recipient of a grant
            who uses such funds for the purpose described in
            paragraph (1) shall match the funds used for such
            purpose, in cash, from non-Federal funds, in an amount
            that is not less than 33 percent of the total amount of
            funds used for that purpose. This paragraph shall not
            apply to any grant recipient that is an institution of
            higher education eligible to receive funds under part A
            or B of title III or title V.
                ``(5) Reservation.--In no event may a recipient use
            more than 20 percent of the funds received under this
            section for grant aid.
                ``(6) Supplement, not supplant.--Funds received by
            a grant recipient that are used under this subsection
            shall be used to supplement, and not supplant, non-
            Federal funds expended for student support services
            programs.''.
        (b) The amendments made by subsection (a) shall apply with
    respect to student support services grants awarded on or after
    the date of enactment of this Act.
        Sec. 318. (a) Subparagraph (B) of section 427A(c)(4) of the
    Higher Education Act of 1965 (20 U.S.C. 1077a(c)(4)) is amended
    to read as follows:
                        ``(B)(i) For any 12-month period beginning
                    on July 1 and ending on or before June 30,
                    2001, the rate determined under this
                    subparagraph is determined on the preceding
                    June 1 and is equal to--
                                ``(I) the bond equivalent rate of
                            52-week Treasury bills auctioned at the
                            final auction held prior to such June
                            1; plus
                                ``(II) 3.25 percent.
                        ``(ii) For any 12-month period beginning on
                    July 1 of 2001 or any succeeding year, the rate
                    determined under this subparagraph is
                    determined on the preceding June 26 and is
                    equal to--
                                ``(I) the weekly average 1-year
                            constant maturity Treasury yield, as
                            published by the Board of Governors of
                            the Federal Reserve System, for the
                            last calendar week ending on or before
                            such June 26; plus
                                ``(II) 3.25 percent.''.
        (b) Subparagraph (A) of section 455(b)(4) of such Act (20
    U.S.C. 1087e(b)(4)) is amended to read as follows:
                        ``(A)(i) For Federal Direct PLUS Loans for
                    which the first disbursement is made on or
                    after July 1, 1994, the applicable rate of
                    interest shall, during any 12-month period
                    beginning on July 1 and ending on or before
                    June 30, 2001, be determined on the preceding
                    June 1 and be equal to--
                                ``(I) the bond equivalent rate of
                            52-week Treasury bills auctioned at
                            final auction held prior to such June
                            1; plus
                                ``(II) 3.1 percent,
                    except that such rate shall not exceed 9
                    percent.
                        ``(ii) For any 12-month period beginning on
                    July 1 of 2001 or any succeeding year, the
                    applicable rate of interest determined under
                    this subparagraph shall be determined on the
                    preceding June 26 and be equal to--
                                ``(I) the weekly average 1-year
                            constant maturity Treasury yield, as
                            published by the Board of Governors of
                            the Federal Reserve System, for the
                            last calendar week ending on or before
                            such June 26; plus
                                ``(II) 3.1 percent,
                    except that such rate shall not exceed 9
                    percent.''.
        Sec. 319. Section 1543 of the Higher Education Amendments
    of 1992 (20 U.S.C. 1070 note) is amended by adding at the end
    the following new subsection:
        ``(e) Designation.--Scholarships awarded under this section
    shall be known as `B. J. Stupak Olympic Scholarships'.''.
        Sec. 320. (a) Subject to subsection (c), the Secretary of
    Education shall release the reversionary interests that were
    retained by the United States, as part of the conveyance of
    certain real property situated in the County of Marin, State of
    California, in an April 3, 1978 Quitclaim Deed, which was filed
    for record on June 5, 1978, in Book 3384, at page 33, of the
    official Records of Marin County, California.
        (b) The Secretary shall execute the release of the
    reversionary interests under subsection (a) without
    consideration.
        (c) The Secretary shall execute and file in the appropriate
    office or offices a deed of release, amended deed, or other
    appropriate instruments effectuating the release of the
    reversionary interests under subsection (a). In all other
    respects the provisions of the April 3, 1978 Quitclaim Deed
    shall remain intact.
        Sec. 321. (a) Grants to Native American Schools and State
    Educational Agencies.--
                (1) Allocation of funds.--Of the amount made
            available under the heading ``School improvement
            programs'' for grants made in accordance with this
            section for school repair and renovation, activities
            under part B of the Individuals with Disabilities
            Education Act (20 U.S.C. 1411 et seq.), and technology
            activities, the Secretary of Education shall allocate--
                        (A) $75,000,000 for grants to impacted
                    local educational agencies (as defined in
                    paragraph (3)) for school repair, renovation,
                    and construction;
                        (B) $3,250,000 for grants to outlying areas
                    for school repair and renovation in high-need
                    schools and communities, allocated on such
                    basis, and subject to such terms and
                    conditions, as the Secretary determines
                    appropriate;
                        (C) $25,000,000 for grants to public
                    entities, private nonprofit entities, and
                    consortia of such entities, for use in
                    accordance with subpart 2 of part C of title X
                    of the Elementary and Secondary Education Act
                    of 1965; and
                        (D) the remainder to State educational
                    agencies in proportion to the amount each State
                    received under part A of title I of the
                    Elementary and Secondary Education Act of 1965
                    (20 U.S.C. 6311 et seq.) for fiscal year 2000,
                    except that no State shall receive less than
                    0.5 percent of the amount allocated under this
                    subparagraph.
                (2) Determination of grant amount.--
                        (A) Determination of weighted student
                    units.--For purposes of computing the grant
                    amounts under paragraph (1)(A) for fiscal year
                    2001, the Secretary shall determine the results
                    obtained by the computation made under section
                    8003 of the Elementary and Secondary Education
                    Act of 1965 (20 U.S.C. 7703) with respect to
                    children described in subsection (a)(1)(C) of
                    such section and computed under subsection
                    (a)(2)(B) of such section for such year--
                                (i) for each impacted local
                            educational agency that receives funds
                            under this section; and
                                (ii) for all such agencies
                            together.
                        (B) Computation of payment.--For fiscal
                    year 2001, the Secretary shall calculate the
                    amount of a grant to an impacted local
                    educational agency by--
                                (i) dividing the amount described
                            in paragraph (1)(A) by the results of
                            the computation described in
                            subparagraph (A)(ii); and
                                (ii) multiplying the number derived
                            under clause (i) by the results of the
                            computation described in subparagraph
                            (A)(i) for such agency.
                (3) Definition.--For purposes of this section, the
            term ``impacted local educational agency'' means, for
            fiscal year 2001--
                        (A) a local educational agency that
                    receives a basic support payment under section
                    8003(b) of the Elementary and Secondary
                    Education Act of 1965 (20 U.S.C. 7703(b)) for
                    such fiscal year; and
                        (B) with respect to which the number of
                    children determined under section 8003(a)(1)(C)
                    of such Act for the preceding school year
                    constitutes at least 50 percent of the total
                    student enrollment in the schools of the agency
                    during such school year.
        (b) Within-State Allocations.--
                (1) Administrative costs.--
                        (A) State educational agency
                    administration.--Except as provided in
                    subparagraph (B), each State educational agency
                    may reserve not more than 1 percent of its
                    allocation under subsection (a)(1)(D) for the
                    purpose of administering the distribution of
                    grants under this subsection.
                        (B) State entity administration.--If the
                    State educational agency transfers funds to a
                    State entity described in paragraph (2)(A), the
                    agency shall transfer to such entity 0.75 of
                    the amount reserved under this paragraph for
                    the purpose of administering the distribution
                    of grants under this subsection.
                (2) Reservation for competitive school repair and
            renovation grants to local educational agencies.--
                        (A) In general.--Subject to the reservation
                    under paragraph (1), of the funds allocated to
                    a State educational agency under subsection
                    (a)(1)(D), the State educational agency shall
                    distribute 75 percent of such funds to local
                    educational agencies or, if such State
                    educational agency is not responsible for the
                    financing of education facilities, the agency
                    shall transfer such funds to the State entity
                    responsible for the financing of education
                    facilities (referred to in this section as the
                    ``State entity'') for distribution by such
                    entity to local educational agencies in
                    accordance with this paragraph, to be used,
                    consistent with subsection (c), for school
                    repair and renovation.
                        (B) Competitive grants to local educational
                    agencies.--
                                (i) In general.--The State
                            educational agency or State entity
                            shall carry out a program of
                            competitive grants to local educational
                            agencies for the purpose described in
                            subparagraph (A). Of the total amount
                            available for distribution to such
                            agencies under this paragraph, the
                            State educational agency or State
                            entity, shall, in carrying out the
                            competition--
                                        (I) award to high poverty
                                    local educational agencies
                                    described in clause (ii), in
                                    the aggregate, at least an
                                    amount which bears the same
                                    relationship to such total
                                    amount as the aggregate amount
                                    such local educational agencies
                                    received under part A of title
                                    I of the Elementary and
                                    Secondary Education Act of 1965
                                    for fiscal year 2000 bears to
                                    the aggregate amount received
                                    for such fiscal year under such
                                    part by all local educational
                                    agencies in the State;
                                        (II) award to rural local
                                    educational agencies in the
                                    State, in the aggregate, at
                                    least an amount which bears the
                                    same relationship to such total
                                    amount as the aggregate amount
                                    such rural local educational
                                    agencies received under part A
                                    of title I of the Elementary
                                    and Secondary Education Act of
                                    1965 for fiscal year 2000 bears
                                    to the aggregate amount
                                    received for such fiscal year
                                    under such part by all local
                                    educational agencies in the
                                    State; and
                                        (III) award the remaining
                                    funds to local educational
                                    agencies not receiving an award
                                    under subclause (I) or (II),
                                    including high poverty and
                                    rural local educational
                                    agencies that did not receive
                                    such an award.
                                (ii) High poverty local educational
                            agencies.--A local educational agency
                            is described in this clause if--
                                        (I) the percentage
                                    described in subparagraph
                                    (C)(i) with respect to the
                                    agency is 30 percent or
                                    greater; or
                                        (II) the number of children
                                    described in such subparagraph
                                    with respect to the agency is
                                    at least 10,000.
                        (C) Criteria for awarding grants.--In
                    awarding competitive grants under this
                    paragraph, a State educational agency or State
                    entity shall take into account the following
                    criteria:
                                (i) The percentage of poor children
                            5 to 17 years of age, inclusive, in a
                            local educational agency.
                                (ii) The need of a local
                            educational agency for school repair
                            and renovation, as demonstrated by the
                            condition of its public school
                            facilities.
                                (iii) The fiscal capacity of a
                            local educational agency to meet its
                            needs for repair and renovation of
                            public school facilities without
                            assistance under this section,
                            including its ability to raise funds
                            through the use of local bonding
                            capacity and otherwise.
                                (iv) In the case of a local
                            educational agency that proposes to
                            fund a repair or renovation project for
                            a charter school or schools, the extent
                            to which the school or schools have
                            access to funding for the project
                            through the financing methods available
                            to other public schools or local
                            educational agencies in the State.
                                (v) The likelihood that the local
                            educational agency will maintain, in
                            good condition, any facility whose
                            repair or renovation is assisted under
                            this section.
                        (D) Possible matching requirement.--
                                (i) In general.--A State
                            educational agency or State entity may
                            require local educational agencies to
                            match funds awarded under this
                            subsection.
                                (ii) Match amount.--The amount of a
                            match described in clause (i) may be
                            established by using a sliding scale
                            that takes into account the relative
                            poverty of the population served by the
                            local educational agency.
                (3) Reservation for competitive idea or technology
            grants to local educational agencies.--
                        (A) In general.--Subject to the reservation
                    under paragraph (1), of the funds allocated to
                    a State educational agency under subsection
                    (a)(1)(D), the State educational agency shall
                    distribute 25 percent of such funds to local
                    educational agencies through competitive grant
                    processes, to be used for the following:
                                (i) To carry out activities under
                            part B of the Individuals with
                            Disabilities Education Act (20 U.S.C.
                            1411 et seq.).
                                (ii) For technology activities that
                            are carried out in connection with
                            school repair and renovation,
                            including--
                                        (I) wiring;
                                        (II) acquiring hardware and
                                    software;
                                        (III) acquiring
                                    connectivity linkages and
                                    resources; and
                                        (IV) acquiring microwave,
                                    fiber optics, cable, and
                                    satellite transmission
                                    equipment.
                        (B) Criteria for awarding idea grants.--In
                    awarding competitive grants under subparagraph
                    (A) to be used to carry out activities under
                    part B of the Individuals with Disabilities
                    Education Act (20 U.S.C. 1411 et seq.), a State
                    educational agency shall take into account the
                    following criteria:
                                (i) The need of a local educational
                            agency for additional funds for a
                            student whose individually allocable
                            cost for expenses related to the
                            Individuals with Disabilities Education
                            Act substantially exceeds the State's
                            average per-pupil expenditure (as
                            defined in section 14101(2) of the
                            Elementary and Secondary Education Act
                            of 1965 (20 U.S.C. 8801(2))).
                                (ii) The need of a local
                            educational agency for additional funds
                            for special education and related
                            services under part B of the
                            Individuals with Disabilities Education
                            Act (20 U.S.C. 1411 et seq.).
                                (iii) The need of a local
                            educational agency for additional funds
                            for assistive technology devices (as
                            defined in section 602 of the
                            Individuals with Disabilities Education
                            Act (20 U.S.C. 1401)) or assistive
                            technology services (as so defined) for
                            children being served under part B of
                            the Individuals with Disabilities
                            Education Act (20 U.S.C. 1411 et seq.).
                                (iv) The need of a local
                            educational agency for additional funds
                            for activities under part B of the
                            Individuals with Disabilities Education
                            Act (20 U.S.C. 1411 et seq.) in order
                            for children with disabilities to make
                            progress toward meeting the performance
                            goals and indicators established by the
                            State under section 612(a)(16) of such
                            Act (20 U.S.C. 1412).
                        (C) Criteria for awarding technology
                    grants.--In awarding competitive grants under
                    subparagraph (A) to be used for technology
                    activities that are carried out in connection
                    with school repair and renovation, a State
                    educational agency shall take into account the
                    need of a local educational agency for
                    additional funds for such activities, including
                    the need for the activities described in
                    subclauses (I) through (IV) of subparagraph
                    (A)(ii).
        (c) Rules Applicable to School Repair and Renovation.--With
    respect to funds made available under this section that are
    used for school repair and renovation, the following rules
    shall apply:
                (1) Permissible uses of funds.--School repair and
            renovation shall be limited to one or more of the
            following:
                        (A) Emergency repairs or renovations to
                    public school facilities only to ensure the
                    health and safety of students and staff,
                    including--
                                (i) repairing, replacing, or
                            installing roofs, electrical wiring,
                            plumbing systems, or sewage systems;
                                (ii) repairing, replacing, or
                            installing heating, ventilation, or air
                            conditioning systems (including
                            insulation); and
                                (iii) bringing public schools into
                            compliance with fire and safety codes.
                        (B) School facilities modifications
                    necessary to render public school facilities
                    accessible in order to comply with the
                    Americans with Disabilities Act of 1990 (42
                    U.S.C. 12101 et seq.).
                        (C) School facilities modifications
                    necessary to render public school facilities
                    accessible in order to comply with section 504
                    of the Rehabilitation Act of 1973 (29 U.S.C.
                    794).
                        (D) Asbestos abatement or removal from
                    public school facilities.
                        (E) Renovation, repair, and acquisition
                    needs related to the building infrastructure of
                    a charter school.
                (2) Impermissible uses of funds.--No funds received
            under this section may be used for--
                        (A) payment of maintenance costs in
                    connection with any projects constructed in
                    whole or part with Federal funds provided under
                    this section;
                        (B) the construction of new facilities,
                    except for facilities for an impacted local
                    educational agency (as defined in subsection
                    (a)(3)); or
                        (C) stadiums or other facilities primarily
                    used for athletic contests or exhibitions or
                    other events for which admission is charged to
                    the general public.
                (3) Charter schools.--A public charter school that
            constitutes a local educational agency under State law
            shall be eligible for assistance under the same terms
            and conditions as any other local educational agency
            (as defined in section 14101(18) of the Elementary and
            Secondary Education Act of 1965 (20 U.S.C. 8801(18))).
                (4) Supplement, not supplant.--Excluding the uses
            described in subparagraphs (B) and (C) of paragraph
            (1), a local educational agency shall use Federal funds
            subject to this subsection only to supplement the
            amount of funds that would, in the absence of such
            Federal funds, be made available from non-Federal
            sources for school repair and renovation.
        (d) Special Rule.--Each local educational agency that
    receives funds under this section shall ensure that, if it
    carries out repair or renovation through a contract, any such
    contract process ensures the maximum number of qualified
    bidders, including small, minority, and women-owned businesses,
    through full and open competition.
        (e) Public Comment.--Each local educational agency
    receiving funds under paragraph (2) or (3) of subsection (b)--
                (1) shall provide parents, educators, and all other
            interested members of the community the opportunity to
            consult on the use of funds received under such
            paragraph;
                (2) shall provide the public with adequate and
            efficient notice of the opportunity described in
            paragraph (1) in a widely read and distributed medium;
            and
                (3) shall provide the opportunity described in
            paragraph (1) in accordance with any applicable State
            and local law specifying how the comments may be
            received and how the comments may be reviewed by any
            member of the public.
        (f) Reporting.--
                (1) Local reporting.--Each local educational agency
            receiving funds under subsection (a)(1)(D) shall submit
            a report to the State educational agency, at such time
            as the State educational agency may require, describing
            the use of such funds for--
                        (A) school repair and renovation (and
                    construction, in the case of an impacted local
                    educational agency (as defined in subsection
                    (a)(3)));
                        (B) activities under part B of the
                    Individuals with Disabilities Education Act (20
                    U.S.C. 1411 et seq.); and
                        (C) technology activities that are carried
                    out in connection with school repair and
                    renovation, including the activities described
                    in subclauses (I) through (IV) of subsection
                    (b)(3)(A)(ii).
                (2) State reporting.--Each State educational agency
            shall submit to the Secretary of Education, not later
            than December 31, 2002, a report on the use of funds
            received under subsection (a)(1)(D) by local
            educational agencies for--
                        (A) school repair and renovation (and
                    construction, in the case of an impacted local
                    educational agency (as defined in subsection
                    (a)(3)));
                        (B) activities under part B of the
                    Individuals with Disabilities Education Act (20
                    U.S.C. 1411 et seq.); and
                        (C) technology activities that are carried
                    out in connection with school repair and
                    renovation, including the activities described
                    in subclauses (I) through (IV) of subsection
                    (b)(3)(A)(ii).
                (3) Additional reports.--Each entity receiving
            funds allocated under subsection (a)(1)(A) or (B) shall
            submit to the Secretary, not later than December 31,
            2002, a report on its uses of funds under this section,
            in such form and containing such information as the
            Secretary may require.
        (g) Applicability of Part B of IDEA.--If a local
    educational agency uses funds received under this section to
    carry out activities under part B of the Individuals with
    Disabilities Education Act (20 U.S.C. 1411 et seq.), such part
    (including provisions respecting the participation of private
    school children), and any other provision of law that applies
    to such part, shall apply to such use.
        (h) Reallocation.--If a State educational agency does not
    apply for an allocation of funds under subsection (a)(1)(D) for
    fiscal year 2001, or does not use its entire allocation for
    such fiscal year, the Secretary may reallocate the amount of
    the State educational agency's allocation (or the remainder
    thereof, as the case may be) to the remaining State educational
    agencies in accordance with subsection (a)(1)(D).
        (i) Participation of Private Schools.--
                (1) In general.--Section 6402 of the Elementary and
            Secondary Education Act of 1965 (20 U.S.C. 7372) shall
            apply to subsection (b)(2) in the same manner as it
            applies to activities under title VI of such Act,
            except that--
                        (A) such section shall not apply with
                    respect to the title to any real property
                    renovated or repaired with assistance provided
                    under this section;
                        (B) the term ``services'' as used in
                    section 6402 of such Act with respect to funds
                    under this section shall be provided only to
                    private, nonprofit elementary or secondary
                    schools with a rate of child poverty of at
                    least 40 percent and may include for purposes
                    of subsection (b)(2) only--
                                (i) modifications of school
                            facilities necessary to meet the
                            standards applicable to public schools
                            under the Americans with Disabilities
                            Act of 1990 (42 U.S.C. 12101 et seq.);
                                (ii) modifications of school
                            facilities necessary to meet the
                            standards applicable to public schools
                            under section 504 of the Rehabilitation
                            Act of 1973 (29 U.S.C. 794); and
                                (iii) asbestos abatement or removal
                            from school facilities; and
                        (C) notwithstanding the requirements of
                    section 6402(b) of the Elementary and Secondary
                    Education Act of 1965 (20 U.S.C. 7372(b)),
                    expenditures for services provided using funds
                    made available under subsection (b)(2) shall be
                    considered equal for purposes of such section
                    if the per-pupil expenditures for services
                    described in subparagraph (B) for students
                    enrolled in private nonprofit elementary and
                    secondary schools that have child poverty rates
                    of at least 40 percent are consistent with the
                    per-pupil expenditures under this section for
                    children enrolled in the public schools in the
                    school district of the local educational agency
                    receiving funds under this section.
                (2) Remaining funds.--If the expenditure for
            services described in paragraph (1)(B) is less than the
            amount calculated under paragraph (1)(C) because of
            insufficient need for such services, the remainder
            shall be available to the local educational agency for
            renovation and repair of public school facilities.
                (3) Application.--If any provision of this section,
            or the application thereof, to any person or
            circumstances is judicially determined to be invalid,
            the provisions of the remainder of the section and the
            application to other persons or circumstances shall not
            be affected thereby.
        (j) Definitions.--For purposes of this section:
                (1) Charter school.--The term ``charter school''
            has the meaning given such term in section 10310(1) of
            the Elementary and Secondary Education Act of 1965 (20
            U.S.C. 8066(1)).
                (2) Elementary school.--The term ``elementary
            school'' has the meaning given such term in section
            14101(14) of the Elementary and Secondary Education Act
            of 1965 (20 U.S.C. 8801(14)).
                (3) Local educational agency.--The term ``local
            educational agency'' has the meaning given such term in
            subparagraphs (A) and (B) of section 14101(18) of the
            Elementary and Secondary Education Act of 1965 (20
            U.S.C. 8801(18)).
                (4) Outlying area.--The term ``outlying area'' has
            the meaning given such term in section 14101(21) of the
            Elementary and Secondary Act of 1965 (20 U.S.C.
            8801(21)).
                (5) Poor children and child poverty.--The terms
            ``poor children'' and ``child poverty'' refer to
            children 5 to 17 years of age, inclusive, who are from
            families with incomes below the poverty line (as
            defined by the Office of Management and Budget and
            revised annually in accordance with section 673(2) of
            the Community Services Block Grant (42 U.S.C. 9902(2))
            applicable to a family of the size involved for the
            most recent fiscal year for which data satisfactory to
            the Secretary are available.
                (6) Rural local educational agency.--The term
            ``rural local educational agency'' means a local
            educational agency that the State determines is located
            in a rural area using objective data and a commonly
            employed definition of the term ``rural''.
                (7) Secondary school.--The term ``secondary
            school'' has the meaning given such term in section
            14101(25) of the Elementary and Secondary Education Act
            of 1965 (20 U.S.C. 8801(25)).
                (8) State.--The term ``State'' means each of the 50
            states, the District of Columbia, and the Commonwealth
            of Puerto Rico.
        Sec. 322. (a) Part C of title X of the Elementary and
    Secondary Education Act of 1965 (20 U.S.C. 8061 et seq.) is
    amended--
                (1) by inserting after the part heading the
            following:

               ``Subpart 1--Basic Charter School Grant Program'';

            and
                (2) by adding at the end the following:

     ``Subpart 2--Credit Enhancement Initiatives To Assist Charter School
               Facility Acquisition, Construction, and Renovation

    ``SEC. 10321. PURPOSE.

        ``The purpose of this subpart is to provide one-time grants
    to eligible entities to permit them to demonstrate innovative
    credit enhancement initiatives that assist charter schools to
    address the cost of acquiring, constructing, and renovating
    facilities.

    ``SEC. 10322. GRANTS TO ELIGIBLE ENTITIES.

        ``(a) In General.--The Secretary shall use 100 percent of
    the amount available to carry out this subpart to award not
    less than 3 grants to eligible entities having applications
    approved under this subpart to demonstrate innovative methods
    of assisting charter schools to address the cost of acquiring,
    constructing, and renovating facilities by enhancing the
    availability of loans or bond financing.
        ``(b) Grantee Selection.--The Secretary shall evaluate each
    application submitted, and shall make a determination of which
    are sufficient to merit approval and which are not. The
    Secretary shall award at least one grant to an eligible entity
    described in section 10330(2)(A), at least one grant to an
    eligible entity described in section 10330(2)(B), and at least
    one grant to an eligible entity described in section
    10330(2)(C), if applications are submitted that permit the
    Secretary to do so without approving an application that is not
    of sufficient quality to merit approval.
        ``(c) Grant Characteristics.--Grants under this subpart
    shall be of a sufficient size, scope, and quality so as to
    ensure an effective demonstration of an innovative means of
    enhancing credit for the financing of charter school
    acquisition, construction, or renovation.
        ``(d) Special Rule.--In the event the Secretary determines
    that the funds available are insufficient to permit the
    Secretary to award not less than 3 grants in accordance with
    subsections (a) through (c), such 3-grant minimum and the
    second sentence of subsection (b) shall not apply, and the
    Secretary may determine the appropriate number of grants to be
    awarded in accordance with subsection (c).

    ``SEC. 10323. APPLICATIONS.

        ``(a) In General.--To receive a grant under this subpart,
    an eligible entity shall submit to the Secretary an application
    in such form as the Secretary may reasonably require.
        ``(b) Contents.--An application under subsection (a) shall
    contain--
                ``(1) a statement identifying the activities
            proposed to be undertaken with funds received under
            this subpart, including how the applicant will
            determine which charter schools will receive
            assistance, and how much and what types of assistance
            charter schools will receive;
                ``(2) a description of the involvement of charter
            schools in the application's development and the design
            of the proposed activities;
                ``(3) a description of the applicant's expertise in
            capital market financing;
                ``(4) a description of how the proposed activities
            will leverage the maximum amount of private-sector
            financing capital relative to the amount of government
            funding used and otherwise enhance credit available to
            charter schools;
                ``(5) a description of how the applicant possesses
            sufficient expertise in education to evaluate the
            likelihood of success of a charter school program for
            which facilities financing is sought;
                ``(6) in the case of an application submitted by a
            State governmental entity, a description of the actions
            that the entity has taken, or will take, to ensure that
            charter schools within the State receive the funding
            they need to have adequate facilities; and
                ``(7) such other information as the Secretary may
            reasonably require.

    ``SEC. 10324. CHARTER SCHOOL OBJECTIVES.

        ``An eligible entity receiving a grant under this subpart
    shall use the funds deposited in the reserve account
    established under section 10325(a) to assist one or more
    charter schools to access private sector capital to accomplish
    one or both of the following objectives:
                ``(1) The acquisition (by purchase, lease,
            donation, or otherwise) of an interest (including an
            interest held by a third party for the benefit of a
            charter school) in improved or unimproved real property
            that is necessary to commence or continue the operation
            of a charter school.
                ``(2) The construction of new facilities, or the
            renovation, repair, or alteration of existing
            facilities, necessary to commence or continue the
            operation of a charter school.

    ``SEC. 10325. RESERVE ACCOUNT.

        ``(a) Use of Funds.--To assist charter schools to
    accomplish the objectives described in section 10324, an
    eligible entity receiving a grant under this subpart shall, in
    accordance with State and local law, directly or indirectly,
    alone or in collaboration with others, deposit the funds
    received under this subpart (other than funds used for
    administrative costs in accordance with section 10326) in a
    reserve account established and maintained by the entity for
    this purpose. Amounts deposited in such account shall be used
    by the entity for one or more of the following purposes:
                ``(1) Guaranteeing, insuring, and reinsuring bonds,
            notes, evidences of debt, loans, and interests therein,
            the proceeds of which are used for an objective
            described in section 10324.
                ``(2) Guaranteeing and insuring leases of personal
            and real property for an objective described in section
            10324.
                ``(3) Facilitating financing by identifying
            potential lending sources, encouraging private lending,
            and other similar activities that directly promote
            lending to, or for the benefit of, charter schools.
                ``(4) Facilitating the issuance of bonds by charter
            schools, or by other public entities for the benefit of
            charter schools, by providing technical,
            administrative, and other appropriate assistance
            (including the recruitment of bond counsel,
            underwriters, and potential investors and the
            consolidation of multiple charter school projects
            within a single bond issue).
        ``(b) Investment.--Funds received under this subpart and
    deposited in the reserve account shall be invested in
    obligations issued or guaranteed by the United States or a
    State, or in other similarly low-risk securities.
        ``(c) Reinvestment of Earnings.--Any earnings on funds
    received under this subpart shall be deposited in the reserve
    account established under subsection (a) and used in accordance
    with such subsection.

    ``SEC. 10326. LIMITATION ON ADMINISTRATIVE COSTS.

        ``An eligible entity may use not more than 0.25 percent of
    the funds received under this subpart for the administrative
    costs of carrying out its responsibilities under this subpart.

    ``SEC. 10327. AUDITS AND REPORTS.

        ``(a) Financial Record Maintenance and Audit.--The
    financial records of each eligible entity receiving a grant
    under this subpart shall be maintained in accordance with
    generally accepted accounting principles and shall be subject
    to an annual audit by an independent public accountant.
        ``(b) Reports.--
                ``(1) Grantee annual reports.--Each eligible entity
            receiving a grant under this subpart annually shall
            submit to the Secretary a report of its operations and
            activities under this subpart.
                ``(2) Contents.--Each such annual report shall
            include--
                        ``(A) a copy of the most recent financial
                    statements, and any accompanying opinion on
                    such statements, prepared by the independent
                    public accountant reviewing the financial
                    records of the eligible entity;
                        ``(B) a copy of any report made on an audit
                    of the financial records of the eligible entity
                    that was conducted under subsection (a) during
                    the reporting period;
                        ``(C) an evaluation by the eligible entity
                    of the effectiveness of its use of the Federal
                    funds provided under this subpart in leveraging
                    private funds;
                        ``(D) a listing and description of the
                    charter schools served during the reporting
                    period;
                        ``(E) a description of the activities
                    carried out by the eligible entity to assist
                    charter schools in meeting the objectives set
                    forth in section 10324; and
                        ``(F) a description of the characteristics
                    of lenders and other financial institutions
                    participating in the activities undertaken by
                    the eligible entity under this subpart during
                    the reporting period.
                ``(3) Secretarial report.--The Secretary shall
            review the reports submitted under paragraph (1) and
            shall provide a comprehensive annual report to the
            Congress on the activities conducted under this
            subpart.

    ``SEC. 10328. NO FULL FAITH AND CREDIT FOR GRANTEE OBLIGATIONS.

        ``No financial obligation of an eligible entity entered
    into pursuant to this subpart (such as an obligation under a
    guarantee, bond, note, evidence of debt, or loan) shall be an
    obligation of, or guaranteed in any respect by, the United
    States. The full faith and credit of the United States is not
    pledged to the payment of funds which may be required to be
    paid under any obligation made by an eligible entity pursuant
    to any provision of this subpart.

    ``SEC. 10329. RECOVERY OF FUNDS.

        ``(a) In General.--The Secretary, in accordance with
    chapter 37 of title 31, United States Code, shall collect--
                ``(1) all of the funds in a reserve account
            established by an eligible entity under section
            10325(a) if the Secretary determines, not earlier than
            2 years after the date on which the entity first
            received funds under this subpart, that the entity has
            failed to make substantial progress in carrying out the
            purposes described in section 10325(a); or
                ``(2) all or a portion of the funds in a reserve
            account established by an eligible entity under section
            10325(a) if the Secretary determines that the eligible
            entity has permanently ceased to use all or a portion
            of the funds in such account to accomplish any purpose
            described in section 10325(a).
        ``(b) Exercise of Authority.--The Secretary shall not
    exercise the authority provided in subsection (a) to collect
    from any eligible entity any funds that are being properly used
    to achieve one or more of the purposes described in section
    10325(a).
        ``(c) Procedures.--The provisions of sections 451, 452, and
    458 of the General Education Provisions Act (20 U.S.C. 1234 et
    seq.) shall apply to the recovery of funds under subsection
    (a).
        ``(d) Construction.--This section shall not be construed to
    impair or affect the authority of the Secretary to recover
    funds under part D of the General Education Provisions Act (20
    U.S.C. 1234 et seq.).

    ``SEC. 10330. DEFINITIONS.

        ``In this subpart:
                ``(1) The term `charter school' has the meaning
            given such term in section 10310.
                ``(2) The term `eligible entity' means--
                        ``(A) a public entity, such as a State or
                    local governmental entity;
                        ``(B) a private nonprofit entity; or
                        ``(C) a consortium of entities described in
                    subparagraphs (A) and (B).

    ``SEC. 10331. AUTHORIZATION OF APPROPRIATIONS.

        ``For the purpose of carrying out this subpart, there are
    authorized to be appropriated $100,000,000 for fiscal year
    2001.''.
        (b) Part C of title X of the Elementary and Secondary
    Education Act of 1965 (20 U.S.C. 8061 et seq.) is amended in
    each of the following provisions by striking ``part'' each
    place such term appears and inserting ``subpart'':
                (1) Sections 10301 through 10305.
                (2) Section 10307.
                (3) Sections 10309 through 10311.
          Sec. 323. (a) Section 8003(b)(2)(F) of the Elementary and
    Secondary Education Act of 1965 (20 U.S.C. 7703(b)(2)(F)) is
    amended--
                (1) by striking ``the Secretary shall use'' and
            inserting ``the Secretary--
                                ``(i) shall use'';
                (2) by striking the period at the end and inserting
            ``; and''; and
                (3) by adding at the end the following:
                                ``(ii) except as provided in
                            subparagraph (C)(i)(I), shall include
                            all of the children described in
                            subparagraphs (F) and (G) of subsection
                            (a)(1) enrolled in schools of the local
                            educational agency in determining (I)
                            the eligibility of the agency for
                            assistance under this paragraph, and
                            (II) the amount of such assistance if
                            the number of such children meet the
                            requirements of subsection (a)(3).''.
        (b) Section 8003(b)(2) of the Elementary and Secondary
    Education Act of 1965 (20 U.S.C. 7703(b)(2)) is amended by
    adding at the end the following:
                        ``(G) Determination of average tax rates
                    for general fund purposes.--For the purpose of
                    determining average tax rates for general fund
                    purposes for local educational agencies in a
                    State under this paragraph (except under
                    subparagraph (C)(i)(II)(bb)), the Secretary
                    shall use either--
                                ``(i) the average tax rate for
                            general fund purposes for comparable
                            local educational agencies, as
                            determined by the Secretary in
                            regulations; or
                                ``(ii) the average tax rate of all
                            the local educational agencies in the
                            State.''.
        This title may be cited as the ``Department of Education
    Appropriations Act, 2001''.

                           TITLE IV--RELATED AGENCIES

                          Armed Forces Retirement Home

        For expenses necessary for the Armed Forces Retirement Home
    to operate and maintain the United States Soldiers' and
    Airmen's Home and the United States Naval Home, to be paid from
    funds available in the Armed Forces Retirement Home Trust Fund,
    $69,832,000, of which $9,832,000 shall remain available until
    expended for construction and renovation of the physical plants
    at the United States Soldiers' and Airmen's Home and the United
    States Naval Home: Provided, That, notwithstanding any other
    provision of law, a single contract or related contracts for
    development and construction, to include construction of a
    long-term care facility at the United States Naval Home, may be
    employed which collectively include the full scope of the
    project: Provided further, That the solicitation and contract
    shall contain the clause ``availability of funds'' found at 48
    CFR 52.232-18 and 252.232-7007, Limitation of Government
    Obligations.

                 Corporation for National and Community Service

            domestic volunteer service programs, operating expenses

        For expenses necessary for the Corporation for National and
    Community Service to carry out the provisions of the Domestic
    Volunteer Service Act of 1973, as amended, $303,850,000:
    Provided, That none of the funds made available to the
    Corporation for National and Community Service in this Act for
    activities authorized by part E of title II of the Domestic
    Volunteer Service Act of 1973 shall be used to provide stipends
    or other monetary incentives to volunteers or volunteer leaders
    whose incomes exceed 125 percent of the national poverty level.

                      Corporation for Public Broadcasting

        For payment to the Corporation for Public Broadcasting, as
    authorized by the Communications Act of 1934, an amount which
    shall be available within limitations specified by that Act,
    for the fiscal year 2003, $365,000,000: Provided, That no funds
    made available to the Corporation for Public Broadcasting by
    this Act shall be used to pay for receptions, parties, or
    similar forms of entertainment for Government officials or
    employees: Provided further, That none of the funds contained
    in this paragraph shall be available or used to aid or support
    any program or activity from which any person is excluded, or
    is denied benefits, or is discriminated against, on the basis
    of race, color, national origin, religion, or sex: Provided
    further, That in addition to the amounts provided above,
    $20,000,000, to remain available until expended, shall be for
    digitalization, pending enactment of authorizing legislation.

                   Federal Mediation and Conciliation Service

                             salaries and expenses

        For expenses necessary for the Federal Mediation and
    Conciliation Service to carry out the functions vested in it by
    the Labor Management Relations Act, 1947 (29 U.S.C. 171-180,
    182-183), including hire of passenger motor vehicles; for
    expenses necessary for the Labor-Management Cooperation Act of
    1978 (29 U.S.C. 175a); and for expenses necessary for the
    Service to carry out the functions vested in it by the Civil
    Service Reform Act, Public Law 95-454 (5 U.S.C. ch. 71),
    $38,200,000, including $1,500,000, to remain available through
    September 30, 2002, for activities authorized by the Labor-
    Management Cooperation Act of 1978 (29 U.S.C. 175a): Provided,
    That notwithstanding 31 U.S.C. 3302, fees charged, up to full-
    cost recovery, for special training activities and other
    conflict resolution services and technical assistance,
    including those provided to foreign governments and
    international organizations, and for arbitration services shall
    be credited to and merged with this account, and shall remain
    available until expended: Provided further, That fees for
    arbitration services shall be available only for education,
    training, and professional development of the agency workforce:
    Provided further, That the Director of the Service is
    authorized to accept and use on behalf of the United States
    gifts of services and real, personal, or other property in the
    aid of any projects or functions within the Director's
    jurisdiction.

                Federal Mine Safety and Health Review Commission

                             salaries and expenses

        For expenses necessary for the Federal Mine Safety and
    Health Review Commission (30 U.S.C. 801 et seq.), $6,320,000.

                    Institute of Museum and Library Services

             office of library services: grants and administration

        For carrying out subtitle B of the Museum and Library
    Services Act, $207,219,000: Provided, That of the amount
    provided, $1,000,000 shall be awarded to the National Museum of
    Women in the Arts in Washington, D.C., $700,000 shall be
    awarded to the University of Idaho Institute for the Historic
    Study of Jazz, $2,600,000 shall be awarded to Southeast
    Missouri State University River Campus and Museum, $900,000
    shall be awarded to the Heritage Harbor Museum in Rhode Island,
    $500,000 shall be awarded to the Alaska Native Heritage Center,
    $576,000 shall be awarded to the Franklin Institute in
    Philadelphia, $925,000 shall be awarded to the Please Touch
    Museum, $250,000 shall be awarded to the Pittsburgh Children's
    Museum, $510,000 shall be awarded to the Temple University
    Library, $1,800,000 shall be awarded to Franklin Pierce College
    in New Hampshire, $500,000 shall be awarded to the Louisville
    Zoo in Kentucky, $150,000 shall be awarded to the Oregon
    Historical Society, $1,200,000 shall be awarded to the
    Mississippi River Museum and Discovery Center in Dubuque, Iowa,
    $650,000 shall be awarded to the Salisbury House Foundation in
    Des Moines, Iowa, $150,000 shall be awarded to the History
    Center for the Linn County Historical Museum in Iowa,
    $4,000,000 shall be awarded to the Newsline for the Blind, of
    which $100,000 shall be awarded to the Iowa Newsline for the
    Blind and $100,000 shall be awarded to the West Virginia
    Newsline for the Blind, $1,000,000 shall be awarded to the Clay
    Center for the Arts and Sciences, $650,000 shall be awarded to
    Bishops Museum in Hawaii, $500,000 shall be awarded to the
    Wisconsin Maritime Museum, $250,000 shall be awarded to the
    Natural History Museum of Los Angeles, $400,000 shall be
    awarded to the Perkins Geology Museum at the University of
    Vermont, $400,000 shall be awarded to the Walt Whitman Cultural
    Arts Center in Camden, New Jersey, $400,000 shall be awarded to
    the Plainfield Public Library in Plainfield, New Jersey,
    $150,000 shall be awarded to the Ducktown Arts District in
    Atlantic City, New Jersey, $400,000 shall be awarded to the
    Lake Champlain Science Center in Vermont, $250,000 shall be
    awarded to the Foundation for the Arts, Music, and
    Entertainment of Shreveport-Bossier, Inc., $100,000 shall be
    awarded to Bryant College in Rhode Island, $120,000 shall be
    awarded to the Fenton Historical Museum of Jamestown, New York,
    $921,000 shall be awarded to the Mariners' Museum in Newport
    News, Virginia, $461,000 shall be awarded to DuPage County
    Children's Museum in Naperville, Illinois, $369,000 shall be
    awarded to the National Baseball Hall of Fame Library in
    Cooperstown, New York, $92,000 shall be awarded to the City of
    Corona, Riverside, California, $6,000 shall be awarded to the
    City of Murrieta, California Public Library, $1,382,000 shall
    be awarded to the Sierra Madre, California Public Library,
    $23,000 shall be awarded to the Brooklyn Public Library in
    Brooklyn, New York, $46,000 shall be awarded to the New York
    Public Library Staten Island branch, $266,000 shall be awarded
    to the Edward H. Nabb Research Center at Salisbury State
    University in Salisbury, Maryland, $461,000 shall be awarded to
    Texas Tech University, $230,000 shall be awarded to the City of
    Ontario, California Public Library, $461,000 shall be awarded
    to the Southern Oregon University in Ashland, Oregon,
    $1,106,000 shall be awarded to Christopher Newport University
    in Newport News, Virginia, $128,000 shall be awarded to the
    Nassau County Museum of Art in Roslyn Harbor, New York,
    $850,000 shall be awarded to the Children's Museum of Los
    Angeles, $43,000 shall be awarded to Sumter County Library in
    Sumter, South Carolina, $298,000 shall be awarded to Columbia
    College Center for Black Music Research in Chicago, Illinois,
    $723,000 shall be awarded to Old Sturbridge Village in
    Sturbridge, Massachusetts, $723,000 shall be awarded to New
    Bedford Whaling Museum in Massachusetts, $298,000 shall be
    awarded to Mystic Seaport Museum of America and the Sea in
    Connecticut, $468,000 shall be awarded to the City of Houston
    Public Library, $128,000 shall be awarded to the Roberson
    Museum and Science Center in Binghampton, New York, $850,000
    shall be awarded to Berman Museum of Art at Ursinus College in
    Collegeville, Pennsylvania, $680,000 shall be awarded to
    AMISTAD Research Center at Tulane University, $2,125,000 shall
    be awarded to Silas Bronson Library in Waterbury, Connecticut,
    $213,000 shall be awarded to Fitchburg Art Museum in Fitchburg,
    Massachusetts, $128,000 shall be awarded to North Carolina
    Museum of Life and Science, $2,435,000 shall be awarded to New
    York Public Library, $85,000 shall be awarded to the New York
    Botanical Garden in Bronx, New York, $170,000 shall be awarded
    to George Eastman House in Rochester, New York, $425,000 shall
    be awarded to The National Aviary in Pittsburgh, Pennsylvania,
    $723,000 shall be awarded to the George C. Page Museum in Los
    Angeles, California, $461,000 shall be awarded to the Abraham
    Lincoln Bicentennial Commission, and $410,000 shall be awarded
    to the AE Seaman Mineral Museum in Houghton, Michigan.

                      Medicare Payment Advisory Commission

                             salaries and expenses

        For expenses necessary to carry out section 1805 of the
    Social Security Act, $8,000,000, to be transferred to this
    appropriation from the Federal Hospital Insurance and the
    Federal Supplementary Medical Insurance Trust Funds.

            National Commission on Libraries and Information Science

                             salaries and expenses

        For necessary expenses for the National Commission on
    Libraries and Information Science, established by the Act of
    July 20, 1970 (Public Law 91-345, as amended), $1,495,000.

                         National Council on Disability

                             salaries and expenses

        For expenses necessary for the National Council on
    Disability as authorized by title IV of the Rehabilitation Act
    of 1973, as amended, $2,615,000.

                         National Education Goals Panel

        For expenses necessary for the National Education Goals
    Panel, as authorized by title II, part A of the Goals 2000:
    Educate America Act, $1,500,000.

                         National Labor Relations Board

                             salaries and expenses

        For expenses necessary for the National Labor Relations
    Board to carry out the functions vested in it by the Labor-
    Management Relations Act, 1947, as amended (29 U.S.C. 141-167),
    and other laws, $216,438,000: Provided, That no part of this
    appropriation shall be available to organize or assist in
    organizing agricultural laborers or used in connection with
    investigations, hearings, directives, or orders concerning
    bargaining units composed of agricultural laborers as referred
    to in section 2(3) of the Act of July 5, 1935 (29 U.S.C. 152),
    and as amended by the Labor-Management Relations Act, 1947, as
    amended, and as defined in section 3(f) of the Act of June 25,
    1938 (29 U.S.C. 203), and including in said definition
    employees engaged in the maintenance and operation of ditches,
    canals, reservoirs, and waterways when maintained or operated
    on a mutual, nonprofit basis and at least 95 percent of the
    water stored or supplied thereby is used for farming purposes.

                            National Mediation Board

                             salaries and expenses

        For expenses necessary to carry out the provisions of the
    Railway Labor Act, as amended (45 U.S.C. 151-188), including
    emergency boards appointed by the President, $10,400,000.

                Occupational Safety and Health Review Commission

                             salaries and expenses

        For expenses necessary for the Occupational Safety and
    Health Review Commission (29 U.S.C. 661), $8,720,000.

                           Railroad Retirement Board

                         dual benefits payments account

        For payment to the Dual Benefits Payments Account,
    authorized under section 15(d) of the Railroad Retirement Act
    of 1974, $160,000,000, which shall include amounts becoming
    available in fiscal year 2001 pursuant to section 224(c)(1)(B)
    of Public Law 98-76; and in addition, an amount, not to exceed
    2 percent of the amount provided herein, shall be available
    proportional to the amount by which the product of recipients
    and the average benefit received exceeds $160,000,000:
    Provided, That the total amount provided herein shall be
    credited in 12 approximately equal amounts on the first day of
    each month in the fiscal year.

              federal payments to the railroad retirement accounts

        For payment to the accounts established in the Treasury for
    the payment of benefits under the Railroad Retirement Act for
    interest earned on unnegotiated checks, $150,000, to remain
    available through September 30, 2002, which shall be the
    maximum amount available for payment pursuant to section 417 of
    Public Law 98-76.

                          limitation on administration

        For necessary expenses for the Railroad Retirement Board
    for administration of the Railroad Retirement Act and the
    Railroad Unemployment Insurance Act, $95,000,000, to be derived
    in such amounts as determined by the Board from the railroad
    retirement accounts and from moneys credited to the railroad
    unemployment insurance administration fund.

                 limitation on the office of inspector general

        For expenses necessary for the Office of Inspector General
    for audit, investigatory and review activities, as authorized
    by the Inspector General Act of 1978, as amended, not more than
    $5,700,000, to be derived from the railroad retirement accounts
    and railroad unemployment insurance account: Provided, That
    none of the funds made available in any other paragraph of this
    Act may be transferred to the Office; used to carry out any
    such transfer; used to provide any office space, equipment,
    office supplies, communications facilities or services,
    maintenance services, or administrative services for the
    Office; used to pay any salary, benefit, or award for any
    personnel of the Office; used to pay any other operating
    expense of the Office; or used to reimburse the Office for any
    service provided, or expense incurred, by the Office.

                         Social Security Administration

                    payments to social security trust funds

        For payment to the Federal Old-Age and Survivors Insurance
    and the Federal Disability Insurance trust funds, as provided
    under sections 201(m), 228(g), and 1131(b)(2) of the Social
    Security Act, $20,400,000.

                   special benefits for disabled coal miners

        For carrying out title IV of the Federal Mine Safety and
    Health Act of 1977, $365,748,000, to remain available until
    expended.
        For making, after July 31 of the current fiscal year,
    benefit payments to individuals under title IV of the Federal
    Mine Safety and Health Act of 1977, for costs incurred in the
    current fiscal year, such amounts as may be necessary.
        For making benefit payments under title IV of the Federal
    Mine Safety and Health Act of 1977 for the first quarter of
    fiscal year 2002, $114,000,000, to remain available until
    expended.

                      supplemental security income program

        For carrying out titles XI and XVI of the Social Security
    Act, section 401 of Public Law 92-603, section 212 of Public
    Law 93-66, as amended, and section 405 of Public Law 95-216,
    including payment to the Social Security trust funds for
    administrative expenses incurred pursuant to section 201(g)(1)
    of the Social Security Act, $23,043,000,000, to remain
    available until expended: Provided, That any portion of the
    funds provided to a State in the current fiscal year and not
    obligated by the State during that year shall be returned to
    the Treasury.
        In addition, $210,000,000, to remain available until
    September 30, 2002, for payment to the Social Security trust
    funds for administrative expenses for continuing disability
    reviews as authorized by section 103 of Public Law 104-121 and
    section 10203 of Public Law 105-33. The term ``continuing
    disability reviews'' means reviews and redeterminations as
    defined under section 201(g)(1)(A) of the Social Security Act,
    as amended.
        For making, after June 15 of the current fiscal year,
    benefit payments to individuals under title XVI of the Social
    Security Act, for unanticipated costs incurred for the current
    fiscal year, such sums as may be necessary.
        For making benefit payments under title XVI of the Social
    Security Act for the first quarter of fiscal year 2002,
    $10,470,000,000, to remain available until expended.

                     limitation on administrative expenses

        For necessary expenses, including the hire of two passenger
    motor vehicles, and not to exceed $10,000 for official
    reception and representation expenses, not more than
    $6,583,000,000 may be expended, as authorized by section
    201(g)(1) of the Social Security Act, from any one or all of
    the trust funds referred to therein: Provided, That not less
    than $1,800,000 shall be for the Social Security Advisory
    Board: Provided further, That unobligated balances at the end
    of fiscal year 2001 not needed for fiscal year 2001 shall
    remain available until expended to invest in the Social
    Security Administration information technology and
    telecommunications hardware and software infrastructure,
    including related equipment and non-payroll administrative
    expenses associated solely with this information technology and
    telecommunications infrastructure: Provided further, That
    reimbursement to the trust funds under this heading for
    expenditures for official time for employees of the Social
    Security Administration pursuant to section 7131 of title 5,
    United States Code, and for facilities or support services for
    labor organizations pursuant to policies, regulations, or
    procedures referred to in section 7135(b) of such title shall
    be made by the Secretary of the Treasury, with interest, from
    amounts in the general fund not otherwise appropriated, as soon
    as possible after such expenditures are made.
        From funds provided under the previous paragraph,
    notwithstanding the provision under this heading in Public Law
    106-113 regarding unobligated balances at the end of fiscal
    year 2000 not needed for such fiscal year, an amount not to
    exceed $50,000,000 from such unobligated balances shall, in
    addition to funding already available under this heading for
    fiscal year 2001, be available for necessary expenses.
        From funds provided under the first paragraph, not less
    than $200,000,000 shall be available for conducting continuing
    disability reviews.
        In addition to funding already available under this
    heading, and subject to the same terms and conditions,
    $450,000,000, to remain available until September 30, 2002, for
    continuing disability reviews as authorized by section 103 of
    Public Law 104-121 and section 10203 of Public Law 105-33. The
    term ``continuing disability reviews'' means reviews and
    redeterminations as defined under section 201(g)(1)(A) of the
    Social Security Act, as amended.
        In addition, $91,000,000 to be derived from administration
    fees in excess of $5.00 per supplementary payment collected
    pursuant to section 1616(d) of the Social Security Act or
    section 212(b)(3) of Public Law 93-66, which shall remain
    available until expended. To the extent that the amounts
    collected pursuant to such section 1616(d) or 212(b)(3) in
    fiscal year 2001 exceed $91,000,000, the amounts shall be
    available in fiscal year 2002 only to the extent provided in
    advance in appropriations Acts.
        From funds previously appropriated for this purpose, any
    unobligated balances at the end of fiscal year 2000 shall be
    available to continue Federal-State partnerships which will
    evaluate means to promote Medicare buy-in programs targeted to
    elderly and disabled individuals under titles XVIII and XIX of
    the Social Security Act.
        From funds provided under the first paragraph, up to
    $6,000,000 shall be available for implementation, development,
    evaluation, and other costs associated with administration of
    section 302 of the Ticket to Work and Work Incentives
    Improvement Act.

                          office of inspector general

                         (including transfer of funds)

        For expenses necessary for the Office of Inspector General
    in carrying out the provisions of the Inspector General Act of
    1978, as amended, $16,944,000, together with not to exceed
    $52,500,000, to be transferred and expended as authorized by
    section 201(g)(1) of the Social Security Act from the Federal
    Old-Age and Survivors Insurance Trust Fund and the Federal
    Disability Insurance Trust Fund.
        In addition, an amount not to exceed 3 percent of the total
    provided in this appropriation may be transferred from the
    ``Limitation on Administrative Expenses'', Social Security
    Administration, to be merged with this account, to be available
    for the time and purposes for which this account is available:
    Provided, That notice of such transfers shall be transmitted
    promptly to the Committees on Appropriations of the House and
    Senate.

                        United States Institute of Peace

                               operating expenses

        For necessary expenses of the United States Institute of
    Peace as authorized in the United States Institute of Peace
    Act, $15,000,000.

                          TITLE V--GENERAL PROVISIONS

        Sec. 501. The Secretaries of Labor, Health and Human
    Services, and Education are authorized to transfer unexpended
    balances of prior appropriations to accounts corresponding to
    current appropriations provided in this Act: Provided, That
    such transferred balances are used for the same purpose, and
    for the same periods of time, for which they were originally
    appropriated.
        Sec. 502. No part of any appropriation contained in this
    Act shall remain available for obligation beyond the current
    fiscal year unless expressly so provided herein.
        Sec. 503. (a) No part of any appropriation contained in
    this Act shall be used, other than for normal and recognized
    executive-legislative relationships, for publicity or
    propaganda purposes, for the preparation, distribution, or use
    of any kit, pamphlet, booklet, publication, radio, television,
    or video presentation designed to support or defeat legislation
    pending before the Congress or any State legislature, except in
    presentation to the Congress or any State legislature itself.
        (b) No part of any appropriation contained in this Act
    shall be used to pay the salary or expenses of any grant or
    contract recipient, or agent acting for such recipient, related
    to any activity designed to influence legislation or
    appropriations pending before the Congress or any State
    legislature.
        Sec. 504. The Secretaries of Labor and Education are
    authorized to make available not to exceed $20,000 and $15,000,
    respectively, from funds available for salaries and expenses
    under titles I and III, respectively, for official reception
    and representation expenses; the Director of the Federal
    Mediation and Conciliation Service is authorized to make
    available for official reception and representation expenses
    not to exceed $2,500 from the funds available for ``Salaries
    and expenses, Federal Mediation and Conciliation Service''; and
    the Chairman of the National Mediation Board is authorized to
    make available for official reception and representation
    expenses not to exceed $2,500 from funds available for
    ``Salaries and expenses, National Mediation Board''.
        Sec. 505. Notwithstanding any other provision of this Act,
    no funds appropriated under this Act shall be used to carry out
    any program of distributing sterile needles or syringes for the
    hypodermic injection of any illegal drug.
        Sec. 506. (a) It is the sense of the Congress that, to the
    greatest extent practicable, all equipment and products
    purchased with funds made available in this Act should be
    American-made.
        (b) In providing financial assistance to, or entering into
    any contract with, any entity using funds made available in
    this Act, the head of each Federal agency, to the greatest
    extent practicable, shall provide to such entity a notice
    describing the statement made in subsection (a) by the
    Congress.
        (c) If it has been finally determined by a court or Federal
    agency that any person intentionally affixed a label bearing a
    ``Made in America'' inscription, or any inscription with the
    same meaning, to any product sold in or shipped to the United
    States that is not made in the United States, the person shall
    be ineligible to receive any contract or subcontract made with
    funds made available in this Act, pursuant to the debarment,
    suspension, and ineligibility procedures described in sections
    9.400 through 9.409 of title 48, Code of Federal Regulations.
        Sec. 507. When issuing statements, press releases, requests
    for proposals, bid solicitations and other documents describing
    projects or programs funded in whole or in part with Federal
    money, all grantees receiving Federal funds included in this
    Act, including but not limited to State and local governments
    and recipients of Federal research grants, shall clearly state:
    (1) the percentage of the total costs of the program or project
    which will be financed with Federal money; (2) the dollar
    amount of Federal funds for the project or program; and (3)
    percentage and dollar amount of the total costs of the project
    or program that will be financed by non-governmental sources.
        Sec. 508. (a) None of the funds appropriated under this
    Act, and none of the funds in any trust fund to which funds are
    appropriated under this Act, shall be expended for any
    abortion.
        (b) None of the funds appropriated under this Act, and none
    of the funds in any trust fund to which funds are appropriated
    under this Act, shall be expended for health benefits coverage
    that includes coverage of abortion.
        (c) The term ``health benefits coverage'' means the package
    of services covered by a managed care provider or organization
    pursuant to a contract or other arrangement.
        Sec. 509. (a) The limitations established in the preceding
    section shall not apply to an abortion--
                (1) if the pregnancy is the result of an act of
            rape or incest; or
                (2) in the case where a woman suffers from a
            physical disorder, physical injury, or physical
            illness, including a life-endangering physical
            condition caused by or arising from the pregnancy
            itself, that would, as certified by a physician, place
            the woman in danger of death unless an abortion is
            performed.
        (b) Nothing in the preceding section shall be construed as
    prohibiting the expenditure by a State, locality, entity, or
    private person of State, local, or private funds (other than a
    State's or locality's contribution of Medicaid matching funds).
        (c) Nothing in the preceding section shall be construed as
    restricting the ability of any managed care provider from
    offering abortion coverage or the ability of a State or
    locality to contract separately with such a provider for such
    coverage with State funds (other than a State's or locality's
    contribution of Medicaid matching funds).
        Sec. 510. (a) None of the funds made available in this Act
    may be used for--
                (1) the creation of a human embryo or embryos for
            research purposes; or
                (2) research in which a human embryo or embryos are
            destroyed, discarded, or knowingly subjected to risk of
            injury or death greater than that allowed for research
            on fetuses in utero under 45 CFR 46.208(a)(2) and
            section 498(b) of the Public Health Service Act (42
            U.S.C. 289g(b)).
        (b) For purposes of this section, the term ``human embryo
    or embryos'' includes any organism, not protected as a human
    subject under 45 CFR 46 as of the date of the enactment of this
    Act, that is derived by fertilization, parthenogenesis,
    cloning, or any other means from one or more human gametes or
    human diploid cells.
        Sec. 511. (a) None of the funds made available in this Act
    may be used for any activity that promotes the legalization of
    any drug or other substance included in schedule I of the
    schedules of controlled substances established by section 202
    of the Controlled Substances Act (21 U.S.C. 812).
        (b) The limitation in subsection (a) shall not apply when
    there is significant medical evidence of a therapeutic
    advantage to the use of such drug or other substance or that
    federally sponsored clinical trials are being conducted to
    determine therapeutic advantage.
        Sec. 512. None of the funds made available in this Act may
    be obligated or expended to enter into or renew a contract with
    an entity if--
                (1) such entity is otherwise a contractor with the
            United States and is subject to the requirement in
            section 4212(d) of title 38, United States Code,
            regarding submission of an annual report to the
            Secretary of Labor concerning employment of certain
            veterans; and
                (2) such entity has not submitted a report as
            required by that section for the most recent year for
            which such requirement was applicable to such entity.
        Sec. 513. (a) Section 403(a)(5)(H)(iii) of the Social
    Security Act (42 U.S.C. 603(a)(5)(H)(iii)) is amended by
    striking ``2001'' and inserting ``2005''.
        (b) Section 403(a)(5)(H) of such Act (42 U.S.C.
    603(a)(5)(G)) is amended by adding at the end the following:
                                ``(iv) Interim report.--Not later
                            than January 1, 2002, the Secretary
                            shall submit to the Congress an interim
                            report on the evaluations referred to
                            in clause (i).''.
        Sec. 514. None of the funds made available in this Act may
    be used to promulgate or adopt any final standard under section
    1173(b) of the Social Security Act (42 U.S.C. 1320d-2(b))
    providing for, or providing for the assignment of, a unique
    health identifier for an individual (except in an individual's
    capacity as an employer or a health care provider), until
    legislation is enacted specifically approving the standard.
        Sec. 515. Section 410(b) of The Ticket to Work and Work
    Incentives Improvement Act of 1999 (Public Law 106-170) is
    amended by striking ``2009'' both places it appears and
    inserting ``2001''.
        Sec. 516. Part B of title III of the Public Health Services
    Act (42 U.S.C. 243 et seq.) is amended by inserting before
    section 318 the following section:

                             ``human papillomavirus

        ``Sec. 317P. (a) Surveillance.--
                ``(1) In general.--The Secretary, acting through
            the Centers for Disease Control and Prevention, shall--
                        ``(A) enter into cooperative agreements
                    with States and other entities to conduct
                    sentinel surveillance or other special studies
                    that would determine the prevalence in various
                    age groups and populations of specific types of
                    human papillomavirus (referred to in this
                    section as `HPV') in different sites in various
                    regions of the United States, through
                    collection of special specimens for HPV using a
                    variety of laboratory-based testing and
                    diagnostic tools; and
                        ``(B) develop and analyze data from the HPV
                    sentinel surveillance system described in
                    subparagraph (A).
                ``(2) Report.--The Secretary shall make a progress
            report to the Congress with respect to paragraph (1) no
            later than one year after the effective date of this
            section.
        ``(b) Prevention Activities; Education Program.--
                ``(1) In general.--The Secretary, acting through
            the Centers for Disease Control and Prevention, shall
            conduct prevention research on HPV, including--
                        ``(A) behavioral and other research on the
                    impact of HPV-related diagnosis on individuals;
                        ``(B) formative research to assist with the
                    development of educational messages and
                    information for the public, for patients, and
                    for their partners about HPV;
                        ``(C) surveys of physician and public
                    knowledge, attitudes, and practices about
                    genital HPV infection; and
                        ``(D) upon the completion of and based on
                    the findings under subparagraphs (A) through
                    (C), develop and disseminate educational
                    materials for the public and health care
                    providers regarding HPV and its impact and
                    prevention.
                ``(2) Report; final proposal.--The Secretary shall
            make a progress report to the Congress with respect to
            paragraph (1) not later than one year after the
            effective date of this section, and shall develop a
            final report not later than three years after such
            effective date, including a detailed summary of the
            significant findings and problems and the best
            strategies to prevent future infections, based on
            available science.
        ``(c) HPV Education and Prevention.--
                ``(1) In general.--The Secretary shall prepare and
            distribute educational materials for health care
            providers and the public that include information on
            HPV. Such materials shall address--
                        ``(A) modes of transmission;
                        ``(B) consequences of infection, including
                    the link between HPV and cervical cancer;
                        ``(C) the available scientific evidence on
                    the effectiveness or lack of effectiveness of
                    condoms in preventing infection with HPV; and
                        ``(D) the importance of regular Pap smears,
                    and other diagnostics for early intervention
                    and prevention of cervical cancer purposes in
                    preventing cervical cancer.
                ``(2) Medically accurate information.--Educational
            material under paragraph (1), and all other relevant
            educational and prevention materials prepared and
            printed from this date forward for the public and
            health care providers by the Secretary (including
            materials prepared through the Food and Drug
            Administration, the Centers for Disease Control and
            Prevention, and the Health Resources and Services
            Administration), or by contractors, grantees, or
            subgrantees thereof, that are specifically designed to
            address STDs including HPV shall contain medically
            accurate information regarding the effectiveness or
            lack of effectiveness of condoms in preventing the STD
            the materials are designed to address. Such requirement
            only applies to materials mass produced for the public
            and health care providers, and not to routine
            communications.''.

    SEC. 4. LABELING OF CONDOMS.

          The Secretary of Health and Human Services shall
    reexamine existing condom labels that are authorized pursuant
    to the Federal Food, Drug, and Cosmetic Act to determine
    whether the labels are medically accurate regarding the overall
    effectiveness or lack of effectiveness of condoms in preventing
    sexually transmitted diseases, including HPV.
        Sec. 517. Section 403(o) of the Food, Drug, and Cosmetic
    Act (21 U.S.C. 343(o)) is repealed. Subsections (c) and (d) of
    section 4 of the Saccharin Study and Labeling Act are repealed.
        Sec. 518. (a) Title VIII of the Social Security Act is
    amended by inserting after section 810 (42 U.S.C. 1010) the
    following new section:

    ``SEC. 810A. OPTIONAL FEDERAL ADMINISTRATION OF STATE RECOGNITION
                        PAYMENTS.

        ``(a) In General.--The Commissioner of Social Security may
    enter into an agreement with any State (or political
    subdivision thereof) that provides cash payments on a regular
    basis to individuals entitled to benefits under this title
    under which the Commissioner of Social Security shall make such
    payments on behalf of such State (or subdivision).
        ``(b) Agreement Terms.--
                ``(1) In general.--Such agreement shall include
            such terms as the Commissioner of Social Security finds
            necessary to achieve efficient and effective
            administration of both this title and the State
            program.
                ``(2) Financial terms.--Such agreement shall
            provide for the State to pay the Commissioner of Social
            Security, at such times and in such installments as the
            parties may specify--
                        ``(A) an amount equal to the expenditures
                    made by the Commissioner of Social Security
                    pursuant to such agreement as payments to
                    individuals on behalf of such State; and
                        ``(B) an administration fee to reimburse
                    the administrative expenses incurred by the
                    Commissioner of Social Security in making
                    payments to individuals on behalf of the State.
        ``(c) Special Disposition of Administration Fees.--
    Administration fees, upon collection, shall be credited to a
    special fund established in the Treasury of the United States
    for State recognition payments for certain World War II
    veterans. The amounts so credited, to the extent and in the
    amounts provided in advance in appropriations Acts, shall be
    available to defray expenses incurred in carrying out this
    title.''.
        (b) Conforming Amendments.--
                (1) The Table of Contents of title VIII of the
            Social Security Act is amended by inserting after
            ``Sec. 810. Other administrative provisions.'' the
            following:

    ``Sec. 810A. Optional federal administration of State recognition
              payments.''.

                (2) Section 1129A(e) of the Social Security (42
            U.S.C. 1320a-8a(e)) is amended--
                        (A) by inserting ``VIII or'' after
                    ``benefits under'';
                        (B) by inserting ``810A or'' after
                    ``agreement under section'';
                        (C) by inserting ``1010A or'' before
                    ``1382(e)(a)''; and
                        (D) by inserting ``, as the case may be''
                    immediately before the period.
        Sec. 519. (a) In General.--Section 1612(a)(1) of the Social
    Security Act (42 U.S.C. 1382(a) is amended--
                (1) in subparagraph (A), by inserting ``but without
            the application of section 210(j)(3)'' immediately
            before the semicolon; and
                (2) in subparagraph (B), by--
                        (A) striking ``and the last'' and inserting
                    ``the last'', and
                        (B) inserting ``, and section 210(j)(3)''
                    after ``subsection (a)''.
        Sec. 520. Amounts made available under this Act for the
    administrative and related expenses for departmental management
    for the Department of Labor, the Department of Health and Human
    Services, and the Department of Education shall be reduced on a
    pro rata basis by $25,000,000: Provided, That this provision
    shall not apply to the Food and Drug Administration and the
    Indian Health Service.

                       TITLE VI--ASSETS FOR INDEPENDENCE

    SECTION 601. SHORT TITLE.

        That this title may be cited as the ``Assets for
    Independence Act Amendments of 2000''.

     SEC. 602. MATCHING CONTRIBUTIONS UNAVAILABLE FOR EMERGENCY
                        WITHDRAWALS.

        Section 404(5)(A)(v) of the Assets for Independence Act (42
    U.S.C. 604 note) is amended by striking ``, or enabling the
    eligible individual to make an emergency withdrawal''.

     SEC. 603. ADDITIONAL QUALIFIED ENTITIES.

        Section 404(7)(A) of the Assets for Independence Act (42
    U.S.C. 604 note) is amended--
                (1) in clause (i), by striking ``or'' at the end
            thereof;
                (2) in clause (ii), by striking the period at the
            end and inserting ``; or''; and
                (3) by adding at the end the following new clause:
                                ``(iii) an entity that--
                                        ``(I) is--
                                                ``(aa) a credit
                                            union designated as a
                                            low-income credit union
                                            by the National Credit
                                            Union Administration
                                            (NCUA); or
                                                ``(bb) an
                                            organization designated
                                            as a community
                                            development financial
                                            institution by the
                                            Secretary of the
                                            Treasury (or the
                                            Community Development
                                            Financial Institutions
                                            Fund); and
                                        ``(II) can demonstrate a
                                    collaborative relationship with
                                    a local community-based
                                    organization whose activities
                                    are designed to address poverty
                                    in the community and the needs
                                    of community members for
                                    economic independence and
                                    stability.''.

     SEC. 604. HOME PURCHASE COSTS.

        Section 404(8)(B)(i) of the Assets for Independence Act (42
    U.S.C. 604 note) is amended by striking ``100'' and inserting
    ``120''.

    SEC. 605. INCREASED SET-ASIDE FOR ECONOMIC LITERACY TRAINING AND
                        ADMINISTRATIVE COSTS.

        Section 407(c)(3) of the Assets for Independence Act (42
    U.S.C. 604 note) is amended--
                (1) by striking ``9.5'' and inserting ``15''; and
                (2) by inserting after the first sentence the
            following: ``Of the total amount specified in this
            paragraph, not more than 7.5 percent shall be used for
            administrative functions under paragraph (1)(C),
            including program management, reporting requirements,
            recruitment and enrollment of individuals, and
            monitoring. The remainder of the total amount specified
            in this paragraph (not including the amount specified
            for use for the purposes described in paragraph (1)(D))
            shall be used for nonadministrative functions described
            in paragraph (1)(A), including case management,
            budgeting, economic literacy, and credit counseling. If
            the cost of nonadministrative functions described in
            paragraph (1)(A) is less than 5.5 percent of the total
            amount specified in this paragraph, such excess funds
            may be used for administrative functions.''.

    SEC. 606. ALTERNATIVE ELIGIBILITY CRITERIA.

        Section 408(a)(1) of the Assets for Independence Act (42
    U.S.C. 604 note) is amended by striking ``does not exceed'' and
    inserting ``is equal to or less than 200 percent of the poverty
    line (as determined by the Office of Management and Budget)
    or''.

    SEC. 607. REVISED ANNUAL PROGRESS REPORT DEADLINE.

        (a) In General.--Section 412(c) of the Assets for
    Independence Act (42 U.S.C. 604 note) is amended by striking
    ``calendar'' and inserting ``project''.
        (b) Transitional Deadline.--Notwithstanding the amendment
    made by subsection (a), the submission of the initial report of
    a qualified entity under section 412(c) shall not be required
    prior to the date that is 90 days after the date of enactment
    of this title.

    SEC. 608. REVISED INTERIM EVALUATION REPORT DEADLINE.

        (a) In General.--Section 414(d)(1) of the Assets for
    Independence Act (42 U.S.C. 604 note) is amended by striking
    ``calendar'' and inserting ``project''.
        (b) Transitional Deadline.--Notwithstanding the amendment
    made by subsection (a), the submission of the initial interim
    report of the Secretary under section 412(c) shall not be
    required prior to the date that is 90 days after the date of
    enactment of this title.

    SEC. 609. INCREASED APPROPRIATIONS FOR EVALUATION EXPENSES.

        Subsection (e) of section 414 of the Assets for
    Independence Act (42 U.S.C. 604 note) is amended to read as
    follows:
        ``(e) Evaluation Expenses.--Of the amount appropriated
    under section 416 for a fiscal year, the Secretary may expend
    not more than $500,000 for such fiscal year to carry out the
    objectives of this section.''.

    SEC. 610. NO REDUCTION IN BENEFITS.

        Section 415 of the Assets for Independence Act (42 U.S.C.
    604 note) is amended to read as follows:

    ``SEC. 415. NO REDUCTION IN BENEFITS.

        ``Notwithstanding any other provision of Federal law (other
    than the Internal Revenue Code of 1986) that requires
    consideration of 1 or more financial circumstances of an
    individual, for the purpose of determining eligibility to
    receive, or the amount of, any assistance or benefit authorized
    by such law to be provided to or for the benefit of such
    individual, funds (including interest accruing) in an
    individual development account under this Act shall be
    disregarded for such purpose with respect to any period during
    which such individual maintains or makes contributions into
    such an account.''.

                 TITLE VII--PHYSICAL EDUCATION FOR PROGRESS ACT

        Sec. 701. Physical Education for Progress. Title X of the
    Elementary and Secondary Education Act of 1965 (20 U.S.C. 8001
    et seq.) is amended by adding at the end the following:

                   ``PART L--PHYSICAL EDUCATION FOR PROGRESS

    ``SEC. 10999A. SHORT TITLE.

        ``This part may be cited as the `Physical Education for
    Progress Act'.

    ``SEC. 10999B. PURPOSE.

        ``The purpose of this part is to award grants and contracts
    to local educational agencies to enable the local educational
    agencies to initiate, expand and improve physical education
    programs for all kindergarten through 12th grade students.

    ``SEC. 10999C. FINDINGS.

        ``Congress makes the following findings:
                ``(1) Physical education is essential to the
            development of growing children.
                ``(2) Physical education helps improve the overall
            health of children by improving their cardiovascular
            endurance, muscular strength and power, and
            flexibility, and by enhancing weight regulation, bone
            development, posture, skillful moving, active lifestyle
            habits, and constructive use of leisure time.
                ``(3) Physical education helps improve the self
            esteem, interpersonal relationships, responsible
            behavior, and independence of children.
                ``(4) Children who participate in high quality
            daily physical education programs tend to be more
            healthy and physically fit.
                ``(5) The percentage of young people who are
            overweight has more than doubled in the 30 years
            preceding 1999.
                ``(6) Low levels of activity contribute to the high
            prevalence of obesity among children in the United
            States.
                ``(7) Obesity related diseases cost the United
            States economy more than $100,000,000,000 every year.
                ``(8) Inactivity and poor diet cause at least
            300,000 deaths a year in the United States.
                ``(9) Physically fit adults have significantly
            reduced risk factors for heart attacks and stroke.
                ``(10) Children are not as active as they should be
            and fewer than 1 in 4 children get 20 minutes of
            vigorous activity every day of the week.
                ``(11) The Surgeon General's 1996 Report on
            Physical Activity and Health, and the Centers for
            Disease Control and Prevention, recommend daily
            physical education for all students in kindergarten
            through grade 12.
                ``(12) Twelve years after Congress passed House
            Concurrent Resolution 97, 100th Congress, agreed to
            December 11, 1987, encouraging State and local
            governments and local educational agencies to provide
            high quality daily physical education programs for all
            children in kindergarten through grade 12, little
            progress has been made.
                ``(13) Every student in our Nation's schools, from
            kindergarten through grade 12, should have the
            opportunity to participate in quality physical
            education. It is the unique role of quality physical
            education programs to develop the health-related
            fitness, physical competence, and cognitive
            understanding about physical activity for all students
            so that the students can adopt healthy and physically
            active lifestyles.

    ``SEC. 10999D. PROGRAM AUTHORIZED.

        ``The Secretary is authorized to award grants to, and enter
    into contracts with, local educational agencies to pay the
    Federal share of the costs of initiating, expanding, and
    improving physical education programs for kindergarten through
    grade 12 students by--
                ``(1) providing equipment and support to enable
            students to actively participate in physical education
            activities; and
                ``(2) providing funds for staff and teacher
            training and education.

    ``SEC. 10999E. APPLICATIONS; PROGRAM ELEMENTS.

        ``(a) Applications.--Each local educational agency desiring
    a grant or contract under this part shall submit to the
    Secretary an application that contains a plan to initiate,
    expand, or improve physical education programs in the schools
    served by the agency in order to make progress toward meeting
    State standards for physical education.
        ``(b) Program Elements.--A physical education program
    described in any application submitted under subsection (a) may
    provide--
                ``(1) fitness education and assessment to help
            children understand, improve, or maintain their
            physical well-being;
                ``(2) instruction in a variety of motor skills and
            physical activities designed to enhance the physical,
            mental, and social or emotional development of every
            child;
                ``(3) development of cognitive concepts about motor
            skill and physical fitness that support a lifelong
            healthy lifestyle;
                ``(4) opportunities to develop positive social and
            cooperative skills through physical activity
            participation;
                ``(5) instruction in healthy eating habits and good
            nutrition; and
                ``(6) teachers of physical education the
            opportunity for professional development to stay
            abreast of the latest research, issues, and trends in
            the field of physical education.
        ``(c) Special Rule.--For the purpose of this part,
    extracurricular activities such as team sports and Reserve
    Officers' Training Corps (ROTC) program activities shall not be
    considered as part of the curriculum of a physical education
    program assisted under this part.

    ``SEC. 10999F. PROPORTIONALITY.

        ``The Secretary shall ensure that grants awarded and
    contracts entered into under this part shall be equitably
    distributed between local educational agencies serving urban
    and rural areas, and between local educational agencies serving
    large and small numbers of students.

    ``SEC. 10999G. PRIVATE SCHOOL STUDENTS AND HOME-SCHOOLED STUDENTS.

        ``An application for funds under this part may provide for
    the participation, in the activities funded under this part,
    of--
                ``(1) homeschooled children, and their parents and
            teachers; or
                ``(2) children enrolled in private nonprofit
            elementary schools or secondary schools, and their
            parents and teachers.

    ``SEC. 10999H. REPORT REQUIRED FOR CONTINUED FUNDING.

        ``As a condition to continue to receive grant or contract
    funding after the first year of a multiyear grant or contract
    under this part, the administrator of the grant or contract for
    the local educational agency shall submit to the Secretary an
    annual report that describes the activities conducted during
    the preceding year and demonstrates that progress has been made
    toward meeting State standards for physical education.

    ``SEC. 10999I. REPORT TO CONGRESS.

        ``The Secretary shall submit a report to Congress not later
    than June 1, 2003, that describes the programs assisted under
    this part, documents the success of such programs in improving
    physical fitness, and makes such recommendations as the
    Secretary determines appropriate for the continuation and
    improvement of the programs assisted under this part.

    ``SEC. 10999J. ADMINISTRATIVE COSTS.

        ``Not more than 5 percent of the grant or contract funds
    made available to a local educational agency under this part
    for any fiscal year may be used for administrative costs.

    ``SEC. 10999K. FEDERAL SHARE; SUPPLEMENT NOT SUPPLANT.

        ``(a) Federal Share.--The Federal share under this part may
    not exceed--
                ``(1) 90 percent of the total cost of a project for
            the first year for which the project receives
            assistance under this part; and
                ``(2) 75 percent of such cost for the second and
            each subsequent such year.
        ``(b) Supplement not Supplant.--Funds made available under
    this part shall be used to supplement and not supplant other
    Federal, State and local funds available for physical education
    activities.

    ``SEC. 10999L. AUTHORIZATION OF APPROPRIATIONS.

        ``There are authorized to be appropriated $30,000,000 for
    fiscal year 2001, $70,000,000 for fiscal year 2002, and
    $100,000,000 for each of the fiscal years 2003 through 2005, to
    carry out this part. Such funds shall remain available until
    expended.''.

                    TITLE VIII--EARLY LEARNING OPPORTUNITIES

    SEC. 801. SHORT TITLE; FINDINGS.

        (a) Short Title.--This title may be cited as the ``Early
    Learning Opportunities Act''.
        (b) Findings.--Congress finds that--
                (1) medical research demonstrates that adequate
            stimulation of a young child's brain between birth and
            age 5 is critical to the physical development of the
            young child's brain;
                (2) parents are the most significant and effective
            teachers of their children, and they alone are
            responsible for choosing the best early learning
            opportunities for their child;
                (3) parent education and parent involvement are
            critical to the success of any early learning program
            or activity;
                (4) the more intensively parents are involved in
            their child's early learning, the greater the cognitive
            and noncognitive benefits to their children;
                (5) many parents have difficulty finding the
            information and support the parents seek to help their
            children grow to their full potential;
                (6) each day approximately 13,000,000 young
            children, including 6,000,000 infants or toddlers,
            spend some or all of their day being cared for by
            someone other than their parents;
                (7) quality early learning programs, including
            those designed to promote effective parenting, can
            increase the literacy rate, the secondary school
            graduation rate, the employment rate, and the college
            enrollment rate for children who have participated in
            voluntary early learning programs and activities;
                (8) early childhood interventions can yield
            substantial advantages to participants in terms of
            emotional and cognitive development, education,
            economic well-being, and health, with the latter 2
            advantages applying to the children's families as well;
                (9) participation in quality early learning
            programs, including those designed to promote effective
            parenting, can decrease the future incidence of teenage
            pregnancy, welfare dependency, at-risk behaviors, and
            juvenile delinquency for children;
                (10) several cost-benefit analysis studies indicate
            that for each $1 invested in quality early learning
            programs, the Federal Government can save over $5 by
            reducing the number of children and families who
            participate in Federal Government programs like special
            education and welfare;
                (11) for children placed in the care of others
            during the workday, the low salaries paid to the child
            care staff, the lack of career progression for the
            staff, and the lack of child development specialists
            involved in early learning and child care programs,
            make it difficult to attract and retain the quality of
            staff necessary for a positive early learning
            experience;
                (12) Federal Government support for early learning
            has primarily focused on out-of-home care programs like
            those established under the Head Start Act, the Child
            Care and Development Block Grant of 1990, and part C of
            the Individuals with Disabilities Education Act, and
            these programs--
                        (A) serve far fewer than half of all
                    eligible children;
                        (B) are not primarily designed to provide
                    support for parents who care for their young
                    children in the home; and
                        (C) lack a means of coordinating early
                    learning opportunities in each community; and
                (13) by helping communities increase, expand, and
            better coordinate early learning opportunities for
            children and their families, the productivity and
            creativity of future generations will be improved, and
            the Nation will be prepared for continued leadership in
            the 21st century.

    SEC. 802. PURPOSES.

        The purposes of this title are--
                (1) to increase the availability of voluntary
            programs, services, and activities that support early
            childhood development, increase parent effectiveness,
            and promote the learning readiness of young children so
            that young children enter school ready to learn;
                (2) to support parents, child care providers, and
            caregivers who want to incorporate early learning
            activities into the daily lives of young children;
                (3) to remove barriers to the provision of an
            accessible system of early childhood learning programs
            in communities throughout the United States;
                (4) to increase the availability and affordability
            of professional development activities and compensation
            for caregivers and child care providers; and
                (5) to facilitate the development of community-
            based systems of collaborative service delivery models
            characterized by resource sharing, linkages between
            appropriate supports, and local planning for services.

    SEC. 803. DEFINITIONS.

        In this title:
                (1) Caregiver.--The term ``caregiver'' means an
            individual, including a relative, neighbor, or family
            friend, who regularly or frequently provides care, with
            or without compensation, for a child for whom the
            individual is not the parent.
                (2) Child care provider.--The term ``child care
            provider'' means a provider of non-residential child
            care services (including center-based, family-based,
            and in-home child care services) for compensation who
            or that is legally operating under State law, and
            complies with applicable State and local requirements
            for the provision of child care services.
                (3) Early learning.--The term ``early learning'',
            used with respect to a program or activity, means
            learning designed to facilitate the development of
            cognitive, language, motor, and social-emotional skills
            for, and to promote learning readiness in, young
            children.
                (4) Early learning program.--The term ``early
            learning program'' means--
                        (A) a program of services or activities
                    that helps parents, caregivers, and child care
                    providers incorporate early learning into the
                    daily lives of young children; or
                        (B) a program that directly provides early
                    learning to young children.
                (5) Indian tribe.--The term ``Indian tribe'' has
            the meaning given the term in section 4 of the Indian
            Self-Determination and Education Assistance Act (25
            U.S.C. 450b).
                (6) Local council.--The term ``Local Council''
            means a Local Council established or designated under
            section 814(a) that serves one or more localities.
                (7) Locality.--The term ``locality'' means a city,
            county, borough, township, or area served by another
            general purpose unit of local government, an Indian
            tribe, a Regional Corporation, or a Native Hawaiian
            entity.
                (8) Parent.--The term ``parent'' means a biological
            parent, an adoptive parent, a stepparent, a foster
            parent, or a legal guardian of, or a person standing in
            loco parentis to, a child.
                (9) Poverty line.--The term ``poverty line'' means
            the poverty line (as defined by the Office of
            Management and Budget, and revised annually in
            accordance with section 673(2) of the Community
            Services Block Grant Act (42 U.S.C. 9902(2)))
            applicable to a family of the size involved.
                (10) Regional corporation.--The term ``Regional
            Corporation'' means an entity listed in section
            419(4)(B) of the Social Security Act (42 U.S.C.
            619(4)(B)).
                (11) Secretary.--The term ``Secretary'' means the
            Secretary of Health and Human Services.
                (12) State.--The term ``State'' means each of the
            several States of the United States, the District of
            Columbia, and the Commonwealth of Puerto Rico.
                (13) Training.--The term ``training'' means
            instruction in early learning that--
                        (A) is required for certification under
                    State and local laws, regulations, and
                    policies;
                        (B) is required to receive a nationally or
                    State recognized credential or its equivalent;
                        (C) is received in a postsecondary
                    education program focused on early learning or
                    early childhood development in which the
                    individual is enrolled; or
                        (D) is provided, certified, or sponsored by
                    an organization that is recognized for its
                    expertise in promoting early learning or early
                    childhood development.
                (14) Young child.--The term ``young child'' means
            any child from birth to the age of mandatory school
            attendance in the State where the child resides.

    SEC. 804. PROHIBITIONS.

        (a) Participation Not Required.--No person, including a
    parent, shall be required to participate in any program of
    early childhood education, early learning, parent education, or
    developmental screening pursuant to the provisions of this
    title.
        (b) Rights of Parents.--Nothing in this title shall be
    construed to affect the rights of parents otherwise established
    in Federal, State, or local law.
        (c) Particular Methods or Settings.--No entity that
    receives funds under this title shall be required to provide
    services under this title through a particular instructional
    method or in a particular instructional setting to comply with
    this title.
        (d) Nonduplication.--No funds provided under this title
    shall be used to carry out an activity funded under another
    provision of law providing for Federal child care or early
    learning programs, unless an expansion of such activity is
    identified in the local needs assessment and performance goals
    under this title.

    SEC. 805. AUTHORIZATION AND APPROPRIATION OF FUNDS.

        There are authorized to be appropriated to the Department
    of Health and Human Services to carry out this title--
                (1) $750,000,000 for fiscal year 2001;
                (2) $1,000,000,000 for fiscal year 2002;
                (3) $1,500,000,000 for fiscal year 2003; and
                (4) such sums as may be necessary for each of the
            fiscal years 2004 and 2005.

    SEC. 806. COORDINATION OF FEDERAL PROGRAMS.

        (a) Coordination.--The Secretary and the Secretary of
    Education shall develop mechanisms to resolve administrative
    and programmatic conflicts between Federal programs that would
    be a barrier to parents, caregivers, service providers, or
    children related to the coordination of services and funding
    for early learning programs.
        (b) Use of Equipment and Supplies.--In the case of a
    collaborative activity funded under this title and another
    provision of law providing for Federal child care or early
    learning programs, the use of equipment and nonconsumable
    supplies purchased with funds made available under this title
    or such provision shall not be restricted to children enrolled
    or otherwise participating in the program carried out under
    this title or such provision, during a period in which the
    activity is predominately funded under this title or such
    provision.

    SEC. 807. PROGRAM AUTHORIZED.

        (a) Grants.--From amounts appropriated under section 805
    the Secretary shall award grants to States to enable the States
    to award grants to Local Councils to pay the Federal share of
    the cost of carrying out early learning programs in the
    locality served by the Local Council.
        (b) Federal Share.--
                (1) In general.--The Federal share of the cost
            described in subsections (a) and (e) shall be 85
            percent for the first and second years of the grant, 80
            percent for the third and fourth years of the grant,
            and 75 percent for the fifth and subsequent years of
            the grant.
                (2) Non-federal share.--The non-Federal share of
            the cost described in subsections (a) and (e) may be
            contributed in cash or in kind, fairly evaluated,
            including facilities, equipment, or services, which may
            be provided from State or local public sources, or
            through donations from private entities. For the
            purposes of this paragraph the term ``facilities''
            includes the use of facilities, but the term
            ``equipment'' means donated equipment and not the use
            of equipment.
        (c) Maintenance of Effort.--The Secretary shall not award a
    grant under this title to any State unless the Secretary first
    determines that the total expenditures by the State and its
    political subdivisions to support early learning programs
    (other than funds used to pay the non-Federal share under
    subsection (b)(2)) for the fiscal year for which the
    determination is made is equal to or greater than such
    expenditures for the preceding fiscal year.
        (d) Supplement Not Supplant.--Amounts received under this
    title shall be used to supplement and not supplant other
    Federal, State, and local public funds expended to promote
    early learning.
        (e) Special Rule.--If funds appropriated to carry out this
    title are less than $150,000,000 for any fiscal year, the
    Secretary shall award grants for the fiscal year directly to
    Local Councils, on a competitive basis, to pay the Federal
    share of the cost of carrying out early learning programs in
    the locality served by the Local Council. In carrying out the
    preceding sentence--
                (1) subsection (c), subsections (b) and (c) of
            section 810, and paragraphs (1), (2), and (3) of
            section 811(a) shall not apply;
                (2) State responsibilities described in section
            811(d) shall be carried out by the Local Council with
            regard to the locality;
                (3) the Secretary shall provide such technical
            assistance and monitoring as necessary to ensure that
            the use of the funds by Local Councils and the
            distribution of the funds to Local Councils are
            consistent with this title; and
                (4) subject to paragraph (1), the Secretary shall
            assume the responsibilities of the Lead State Agency
            under this title, as appropriate.

    SEC. 808. USES OF FUNDS.

        (a) In General.--Subject to section 810, grant funds under
    this title shall be used to pay for developing, operating, or
    enhancing voluntary early learning programs that are likely to
    produce sustained gains in early learning.
        (b) Limited Uses.--Subject to section 810, Lead State
    Agencies and Local Councils shall ensure that funds made
    available under this title to the agencies and Local Councils
    are used for 3 or more of the following activities:
                (1) Helping parents, caregivers, child care
            providers, and educators increase their capacity to
            facilitate the development of cognitive, language
            comprehension, expressive language, social-emotional,
            and motor skills, and promote learning readiness.
                (2) Promoting effective parenting.
                (3) Enhancing early childhood literacy.
                (4) Developing linkages among early learning
            programs within a community and between early learning
            programs and health care services for young children.
                (5) Increasing access to early learning
            opportunities for young children with special needs,
            including developmental delays, by facilitating
            coordination with other programs serving such young
            children.
                (6) Increasing access to existing early learning
            programs by expanding the days or times that the young
            children are served, by expanding the number of young
            children served, or by improving the affordability of
            the programs for low-income families.
                (7) Improving the quality of early learning
            programs through professional development and training
            activities, increased compensation, and recruitment and
            retention incentives, for early learning providers.
                (8) Removing ancillary barriers to early learning,
            including transportation difficulties and absence of
            programs during nontraditional work times.
        (c) Requirements.--Each Lead State Agency designated under
    section 810(c) and Local Councils receiving a grant under this
    title shall ensure--
                (1) that Local Councils described in section 814
            work with local educational agencies to identify
            cognitive, social, emotional, and motor developmental
            abilities which are necessary to support children's
            readiness for school;
                (2) that the programs, services, and activities
            assisted under this title will represent
            developmentally appropriate steps toward the
            acquisition of those abilities; and
                (3) that the programs, services, and activities
            assisted under this title collectively provide benefits
            for children cared for in their own homes as well as
            children placed in the care of others.
        (d) Sliding Scale Payments.--States and Local Councils
    receiving assistance under this title shall ensure that
    programs, services, and activities assisted under this title
    which customarily require a payment for such programs,
    services, or activities, adjust the cost of such programs,
    services, and activities provided to the individual or the
    individual's child based on the individual's ability to pay.

    SEC. 809. RESERVATIONS AND ALLOTMENTS.

        (a) Reservation for Indian Tribes, Alaska Natives, and
    Native Hawaiians.--The Secretary shall reserve 1 percent of the
    total amount appropriated under section 805 for each fiscal
    year, to be allotted to Indian tribes, Regional Corporations,
    and Native Hawaiian entities, of which--
                (1) 0.5 percent shall be available to Indian
            tribes; and
                (2) 0.5 percent shall be available to Regional
            Corporations and Native Hawaiian entities.
        (b) Allotments.--From the funds appropriated under this
    title for each fiscal year that are not reserved under
    subsection (a), the Secretary shall allot to each State the sum
    of--
                (1) an amount that bears the same ratio to 50
            percent of such funds as the number of children 4 years
            of age and younger in the State bears to the number of
            such children in all States; and
                (2) an amount that bears the same ratio to 50
            percent of such funds as the number of children 4 years
            of age and younger living in families with incomes
            below the poverty line in the State bears to the number
            of such children in all States.
        (c) Minimum Allotment.--No State shall receive an allotment
    under subsection (b) for a fiscal year in an amount that is
    less than .40 percent of the total amount appropriated for the
    fiscal year under this title.
        (d) Availability of Funds.--Any portion of the allotment to
    a State that is not expended for activities under this title in
    the fiscal year for which the allotment is made shall remain
    available to the State for 2 additional years, after which any
    unexpended funds shall be returned to the Secretary. The
    Secretary shall use the returned funds to carry out a
    discretionary grant program for research-based early learning
    demonstration projects.
        (e) Data.--The Secretary shall make allotments under this
    title on the basis of the most recent data available to the
    Secretary.

    SEC. 810. GRANT ADMINISTRATION.

        (a) Federal Administrative Costs.--The Secretary may use
    not more than 3 percent of the amount appropriated under
    section 805 for a fiscal year to pay for the administrative
    costs of carrying out this title, including the monitoring and
    evaluation of State and local efforts.
        (b) State Administrative Costs.--A State that receives a
    grant under this title may use--
                (1) not more than 2 percent of the funds made
            available through the grant to carry out activities
            designed to coordinate early learning programs on the
            State level, including programs funded or operated by
            the State educational agency, health, children and
            family, and human service agencies, and any State-level
            collaboration or coordination council involving early
            learning and education, such as the entities funded
            under section 640(a)(5) of the Head Start Act (42
            U.S.C. 9835 (a)(5));
                (2) not more than 2 percent of the funds made
            available through the grant for the administrative
            costs of carrying out the grant program and the costs
            of reporting State and local efforts to the Secretary;
            and
                (3) not more than 3 percent of the funds made
            available through the grant for training, technical
            assistance, and wage incentives provided by the State
            to Local Councils.
        (c) Lead State Agency.--
                (1) In general.--To be eligible to receive an
            allotment under this title, the Governor of a State
            shall appoint, after consultation with the leadership
            of the State legislature, a Lead State Agency to carry
            out the functions described in paragraph (2).
                (2) Lead state agency.--
                        (A) Allocation of funds.--The Lead State
                    Agency described in paragraph (1) shall
                    allocate funds to Local Councils as described
                    in section 812.
                        (B) Functions of agency.--In addition to
                    allocating funds pursuant to subparagraph (A),
                    the Lead State Agency shall--
                                (i) advise and assist Local
                            Councils in the performance of their
                            duties under this title;
                                (ii) develop and submit the State
                            application;
                                (iii) evaluate and approve
                            applications submitted by Local
                            Councils under section 813;
                                (iv) ensure collaboration with
                            respect to assistance provided under
                            this title between the State agency
                            responsible for education and the State
                            agency responsible for children and
                            family services;
                                (v) prepare and submit to the
                            Secretary, an annual report on the
                            activities carried out in the State
                            under this title, which shall include a
                            statement describing how all funds
                            received under this title are expended
                            and documentation of the effects that
                            resources under this title have had
                            on--
                                        (I) parental capacity to
                                    improve learning readiness in
                                    their young children;
                                        (II) early childhood
                                    literacy;
                                        (III) linkages among early
                                    learning programs;
                                        (IV) linkages between early
                                    learning programs and health
                                    care services for young
                                    children;
                                        (V) access to early
                                    learning activities for young
                                    children with special needs;
                                        (VI) access to existing
                                    early learning programs through
                                    expansion of the days or times
                                    that children are served;
                                        (VII) access to existing
                                    early learning programs through
                                    expansion of the number of
                                    young children served;
                                        (VIII) access to and
                                    affordability of existing early
                                    learning programs for low-
                                    income families;
                                        (IX) the quality of early
                                    learning programs resulting
                                    from professional development,
                                    and recruitment and retention
                                    incentives for caregivers; and
                                        (X) removal of ancillary
                                    barriers to early learning,
                                    including transportation
                                    difficulties and absence of
                                    programs during nontraditional
                                    work times; and
                                (vi) ensure that training and
                            research is made available to Local
                            Councils and that such training and
                            research reflects the latest available
                            brain development and early childhood
                            development research related to early
                            learning.

    SEC. 811. STATE REQUIREMENTS.

        (a) Eligibility.--To be eligible for a grant under this
    title, a State shall--
                (1) ensure that funds received by the State under
            this title shall be subject to appropriation by the
            State legislature, consistent with the terms and
            conditions required under State law;
                (2) designate a Lead State Agency under section
            810(c) to administer and monitor the grant and ensure
            State-level coordination of early learning programs;
                (3) submit to the Secretary an application at such
            time, in such manner, and accompanied by such
            information as the Secretary may require;
                (4) ensure that funds made available under this
            title are distributed on a competitive basis throughout
            the State to Local Councils serving rural, urban, and
            suburban areas of the State; and
                (5) assist the Secretary in developing mechanisms
            to ensure that Local Councils receiving funds under
            this title comply with the requirements of this title.
        (b) State Preference.--In awarding grants to Local Councils
    under this title, the State, to the maximum extent possible,
    shall ensure that a broad variety of early learning programs
    that provide a continuity of services across the age spectrum
    assisted under this title are funded under this title, and
    shall give preference to supporting--
                (1) a Local Council that meets criteria, that are
            specified by the State and approved by the Secretary,
            for qualifying as serving an area of greatest need for
            early learning programs; and
                (2) a Local Council that demonstrates, in the
            application submitted under section 813, the Local
            Council's potential to increase collaboration as a
            means of maximizing use of resources provided under
            this title with other resources available for early
            learning programs.
        (c) Local Preference.--In awarding grants under this title,
    Local Councils shall give preference to supporting--
                (1) projects that demonstrate their potential to
            collaborate as a means of maximizing use of resources
            provided under this title with other resources
            available for early learning programs;
                (2) programs that provide a continuity of services
            for young children across the age spectrum,
            individually, or through community-based networks or
            cooperative agreements; and
                (3) programs that help parents and other caregivers
            promote early learning with their young children.
        (d) Performance Goals.--
                (1) Assessments.--Based on information and data
            received from Local Councils, and information and data
            available through State resources, the State shall
            biennially assess the needs and available resources
            related to the provision of early learning programs
            within the State.
                (2) Performance goals.--Based on the analysis of
            information described in paragraph (1), the State shall
            establish measurable performance goals to be achieved
            through activities assisted under this title.
                (3) Requirement.--The State shall award grants to
            Local Councils only for purposes that are consistent
            with the performance goals established under paragraph
            (2).
                (4) Report.--The State shall report to the
            Secretary annually regarding the State's progress
            toward achieving the performance goals established in
            paragraph (2) and any necessary modifications to those
            goals, including the rationale for the modifications.
                (5) Improvement plans.--If the Secretary
            determines, based on the State report submitted under
            paragraph (4), that the State is not making progress
            toward achieving the performance goals described in
            paragraph (2), then the State shall submit a
            performance improvement plan to the Secretary, and
            demonstrate reasonable progress in implementing such
            plan, in order to remain eligible for funding under
            this title.

    SEC. 812. LOCAL ALLOCATIONS.

        (a) In General.--The Lead State Agency shall allocate to
    Local Councils in the State not less than 93 percent of the
    funds provided to the State under this title for a fiscal year.
        (b) Limitation.--The Lead State Agency shall allocate funds
    provided under this title on the basis of the population of the
    locality served by the Local Council.

    SEC. 813. LOCAL APPLICATIONS.

        (a) In General.--To be eligible to receive assistance under
    this title, the Local Council shall submit an application to
    the Lead State Agency at such time, in such manner, and
    containing such information as the Lead State Agency may
    require.
        (b) Contents.--Each application submitted pursuant to
    subsection (a) shall include a statement ensuring that the
    local government entity, Indian tribe, Regional Corporation, or
    Native Hawaiian entity has established or designated a Local
    Council under section 814, and the Local Council has developed
    a local plan for carrying out early learning programs under
    this title that includes--
                (1) a needs and resources assessment concerning
            early learning services and a statement describing how
            early learning programs will be funded consistent with
            the assessment;
                (2) a statement of how the Local Council will
            ensure that early learning programs will meet the
            performance goals reported by the Lead State Agency
            under this title; and
                (3) a description of how the Local Council will
            form collaboratives among local youth, social service,
            and educational providers to maximize resources and
            concentrate efforts on areas of greatest need.

    SEC. 814. LOCAL ADMINISTRATION.

        (a) Local Council.--
                (1) In general.--To be eligible to receive funds
            under this title, a local government entity, Indian
            tribe, Regional Corporation, or Native Hawaiian entity,
            as appropriate, shall establish or designate a Local
            Council, which shall be composed of--
                        (A) representatives of local agencies
                    directly affected by early learning programs
                    assisted under this title;
                        (B) parents;
                        (C) other individuals concerned with early
                    learning issues in the locality, such as
                    representative entities providing elementary
                    education, child care resource and referral
                    services, early learning opportunities, child
                    care, and health services; and
                        (D) other key community leaders.
                (2) Designating existing entity.--If a local
            government entity, Indian tribe, Regional Corporation,
            or Native Hawaiian entity has, before the date of
            enactment of the Early Learning Opportunities Act, a
            Local Council or a regional entity that is comparable
            to the Local Council described in paragraph (1), the
            entity, tribe or corporation may designate the council
            or entity as a Local Council under this title, and
            shall be considered to have established a Local Council
            in compliance with this subsection.
                (3) Functions.--The Local Council shall be
            responsible for preparing and submitting the
            application described in section 813.
        (b) Administration.--
                (1) Administrative costs.--Not more than 3 percent
            of the funds received by a Local Council under this
            title shall be used to pay for the administrative costs
            of the Local Council in carrying out this title.
                (2) Fiscal agent.--A Local Council may designate
            any entity, with a demonstrated capacity for
            administering grants, that is affected by, or concerned
            with, early learning issues, including the State, to
            serve as fiscal agent for the administration of grant
            funds received by the Local Council under this title.

                 TITLE IX--RURAL EDUCATION ACHIEVEMENT PROGRAM

    SEC. 901. RURAL EDUCATION INITIATIVE.

        Subpart 2 of part J of title X of the Elementary and
    Secondary Education Act of 1965 (20 U.S.C. 8291 et seq.) is
    amended to read as follows:

                    ``Subpart 2--Rural Education Initiative

    ``SEC. 10971. SHORT TITLE.

        ``This subpart may be cited as the `Rural Education
    Achievement Program'.

    ``SEC. 10972. PURPOSE.

        ``It is the purpose of this subpart to address the unique
    needs of rural school districts that frequently--
                ``(1) lack the personnel and resources needed to
            compete for Federal competitive grants; and
                ``(2) receive formula allocations in amounts too
            small to be effective in meeting their intended
            purposes.

    ``SEC. 10973. AUTHORIZATION OF APPROPRIATIONS.

        ``There are authorized to be appropriated to carry out this
    subpart $62,500,000 for fiscal year 2001.

    ``SEC. 10974. FORMULA GRANT PROGRAM AUTHORIZED.

        ``(a) Alternative Uses.--
                ``(1) In general.--Notwithstanding any other
            provision of law, an eligible local educational agency
            may use the applicable funding, that the agency is
            eligible to receive from the State educational agency
            for a fiscal year, to carry out local activities
            authorized in part A of title I, section 2210(b),
            section 3134, or section 4116.
                ``(2) Notification.--An eligible local educational
            agency shall notify the State educational agency of the
            local educational agency's intention to use the
            applicable funding in accordance with paragraph (1) not
            later than a date that is established by the State
            educational agency for the notification.
        ``(b) Eligibility.--A local educational agency shall be
    eligible to use the applicable funding in accordance with
    subsection (a) if--
                ``(1) the total number of students in average daily
            attendance at all of the schools served by the local
            educational agency is less than 600; and
                ``(2) all of the schools served by the local
            educational agency are designated with a School Locale
            Code of 7 or 8, as determined by the Secretary of
            Education.
        ``(c) Applicable Funding.--In this section, the term
    `applicable funding' means funds provided under each of titles
    II, IV, and VI, except for funds made available under section
    321 of the Department of Education Appropriations Act, 2001.
        ``(d) Disbursal.--Each State educational agency that
    receives applicable funding for a fiscal year shall disburse
    the applicable funding to local educational agencies for
    alternative uses under this section for the fiscal year at the
    same time that the State educational agency disburses the
    applicable funding to local educational agencies that do not
    intend to use the applicable funding for such alternative uses
    for the fiscal year.
        ``(e) Supplement Not Supplant.--Funds made available under
    this section shall be used to supplement and not supplant any
    other State or local education funds.
        ``(f) Special Rule.--References in Federal law to funds for
    the provisions of law set forth in subsection (c) may be
    considered to be references to funds for this section.
        ``(g) Construction.--Nothing in this subpart shall be
    construed to prohibit a local educational agency that enters
    into cooperative arrangements with other local educational
    agencies for the provision of special, compensatory, or other
    education services pursuant to State law or a written agreement
    from entering into similar arrangements for the use or the
    coordination of the use of the funds made available under this
    subpart.

    ``SEC. 10975. COMPETITIVE GRANT PROGRAM AUTHORIZED.

        ``(a) In General.--The Secretary is authorized to award
    grants to eligible local educational agencies to enable the
    local educational agencies to carry out local activities
    authorized in part A of title I, section 2210(b), section 3134,
    or section 4116.
        ``(b) Eligibility.--A local educational agency shall be
    eligible to receive a grant under this section if--
                ``(1) the total number of students in average daily
            attendance at all of the schools served by the local
            educational agency is less than 600; and
                ``(2) all of the schools served by the local
            educational agency are designated with a School Locale
            Code of 7 or 8, as determined by the Secretary of
            Education.
        ``(c) Amount.--
                ``(1) In general.--The Secretary shall award a
            grant to a local educational agency under this section
            for a fiscal year in an amount equal to the amount
            determined under paragraph (2) for the fiscal year
            minus the total amount received under the provisions of
            law described under section 10974(c) for the fiscal
            year.
                ``(2) Determination.--The amount referred to in
            paragraph (1) is equal to $100 multiplied by the total
            number of students in excess of 50 students that are in
            average daily attendance at the schools served by the
            local educational agency, plus $20,000, except that the
            amount may not exceed $60,000.
                ``(3) Census determination.--
                        ``(A) In general.--Each local educational
                    agency desiring a grant under this section
                    shall determine for each year the number of
                    kindergarten through grade 12 students in
                    average daily attendance at the schools served
                    by the local educational agency during the
                    period beginning or the first day of classes
                    and ending on December 1.
                        ``(B) Submission.--Each local educational
                    agency shall submit the number described in
                    subparagraph (A) to the Secretary not later
                    than March 1 of each year.
                ``(4) Penalty.--If the Secretary determines that a
            local educational agency has knowingly submitted false
            information under paragraph (3) for the purpose of
            gaining additional funds under this section, then the
            local educational agency shall be fined an amount equal
            to twice the difference between the amount the local
            educational agency received under this section, and the
            correct amount the local educational agency would have
            received under this section if the agency had submitted
            accurate information under paragraph (3).
        ``(d) Disbursal.--The Secretary shall disburse the funds
    awarded to a local educational agency under this section for a
    fiscal year not later than July 1 of that year.
        ``(e) Supplement Not Supplant.--Funds made available under
    this section shall be used to supplement and not supplant any
    other State or local education funds.

    ``SEC. 10976. ACCOUNTABILITY.

        ``(a) Academic Achievement.--
                ``(1) In general.--Each local educational agency
            that uses or receives funds under section 10974 or
            10975 for a fiscal year shall--
                        ``(A) administer an assessment that is used
                    statewide and is consistent with the assessment
                    described in section 1111(b), to assess the
                    academic achievement of students in the schools
                    served by the local educational agency; or
                        ``(B) in the case of a local educational
                    agency for which there is no statewide
                    assessment described in subparagraph (A),
                    administer a test, that is selected by the
                    local educational agency, to assess the
                    academic achievement of students in the schools
                    served by the local educational agency.
                ``(2) Special rule.--Each local educational agency
            that uses or receives funds under section 10974 or
            10975 shall use the same assessment or test described
            in paragraph (1) for each year of participation in the
            program carried out under such section.
        ``(b) State Educational Agency Determination Regarding
    Continuing Participation.--Each State educational agency that
    receives funding under the provisions of law described in
    section 10974(c) shall--
                ``(1) after the third year that a local educational
            agency in the State participates in a program
            authorized under section 10974 or 10975 and on the
            basis of the results of the assessments or tests
            described in subsection (a), determine whether the
            students served by the local educational agency
            participating in the program performed better on the
            assessments or tests after the third year of the
            participation than the students performed on the
            assessments or tests after the first year of the
            participation;
                ``(2) permit only the local educational agencies
            that participated in the program and served students
            that performed better on the assessments or tests, as
            described in paragraph (1), to continue to participate
            in the program for an additional period of 3 years; and
                ``(3) prohibit the local educational agencies that
            participated in the program and served students that
            did not perform better on the assessments or tests, as
            described in paragraph (1), from participating in the
            program, for a period of 3 years from the date of the
            determination.

    ``SEC. 10977. RATABLE REDUCTIONS IN CASE OF INSUFFICIENT
                        APPROPRIATIONS.

        ``(a) In General.--If the amount appropriated for any
    fiscal year and made available for grants under this subpart is
    insufficient to pay the full amount for which all agencies are
    eligible under this subpart, the Secretary shall ratably reduce
    each such amount.
        ``(b) Additional Amounts.--If additional funds become
    available for making payments under paragraph (1) for such
    fiscal year, payments that were reduced under subsection (a)
    shall be increased on the same basis as such payments were
    reduced.

    ``SEC. 10978. APPLICABILITY.

        ``Sections 10951 and 10952 shall not apply to this
    subpart.''.
        This Act may be cited as the ``Departments of Labor, Health
    and Human Services, and Education, and Related Agencies
    Appropriations Act, 2001''.

      DEPARTMENTS OF LABOR, HEALTH AND HUMAN SERVICES, AND EDUCATION, AND
                        RELATED AGENCIES APPROPRIATIONS

          Following is explanatory language on H.R. 5656, as
    introduced on December 14, 2000.
          The conferees on H.R. 4577 agree with the matter included
    in H.R. 5656 and enacted in this conference report by reference
    and the following description. This bill was developed through
    negotiations by the conferees on the differences in H.R. 4577.
    References in the following description to the ``conference
    agreement'' mean the matter included in the introduced bill
    enacted by this conference report. References to the House bill
    mean the House passed H.R. 4577. References to the Senate bill
    or to the Senate amendment mean the Senate passed version of
    H.R. 4577.
          In implementing this agreement, the Departments and
    agencies should comply with the language and instructions set
    forth in House Report 106-645 and Senate Report 106-293.
          In the case where the language and instructions
    specifically address the allocation of funds, the Departments
    and agencies are to follow the funding levels specified in the
    Congressional budget justifications accompanying the fiscal
    year 2001 budget or the underlying authorizing statute and
    should give full consideration to all items, including items
    allocating specific funding included in the House and Senate
    reports. With respect to the provisions in the House and Senate
    reports that specifically allocate funds each has been reviewed
    and those that are jointly concurred in have been included in
    this joint statement.
          The conferees specifically endorse the provisions of the
    House Report 105-205 directing ``* * * the Departments of
    Labor, Health and Human Services, and Education and the Social
    Security Administration and the Railroad Retirement Board to
    submit operating plans with respect to discretionary
    appropriations to the House and Senate Committees on
    Appropriations. These plans, which are to be submitted within
    30 days of the final passage of the bill, must be signed by the
    respective Departmental Secretaries, the Social Security
    Commissioner and the Chairman of the Railroad Retirement
    Board.''
          The conferees expect the Departments and agencies covered
    by this directive to meet with the House and Senate Committees
    as soon as possible after enactment of the bill to develop a
    methodology to assure adequate and timely information on the
    allocation of funds within accounts within this conference
    report while minimizing the need for unnecessary and
    duplicative submissions.
          The Departments of Labor, Health and Human Services, and
    Education, and Related Agencies Appropriations Act, 2001, put
    in place by this bill, incorporates the following agreements of
    the managers:

                          TITLE I--DEPARTMENT OF LABOR

                     Employment and Training Administration

                        Training and Employment Services

          The conference agreement includes $5,670,805,000 for
    training and employment services instead of $5,015,495,000 as
    proposed by the House and $5,453,141,000 as proposed by the
    Senate. Of the amount appropriated, $2,463,000,000 is an
    advance appropriation for fiscal year 2002. The conference
    agreement includes $1,400,000,000, which is the House level for
    Job Corps, but eliminates the October 1, 2000 availability of
    funds for hiring Business and Community Liaisons. The
    conference agreement includes $15,000,000 for this purpose, but
    the funds are made available on July 1, 2001, the normal
    funding cycle for Job Corps operations.
          The conference agreement includes $586,487 made available
    for Job Corps operating expenses to be paid to the city of
    Vergennes, Vermont in settlement of the city's claim.
          The conference agreement includes $1,590,040,000 for the
    Dislocated Worker program, as a step toward providing all
    dislocated workers who want and need assistance the resources
    to train for or find new jobs.
          The conference agreement includes $1,102,965,000 for
    Youth Activities. This increase will allow local communities to
    address the reduction in the number of youth served in this
    year's summer jobs program resulting from a shift to
    comprehensive services, to establish new local youth councils,
    and to implement other reforms to youth training activities and
    services, all required under the Workforce Investment Act.
          At the time the conferees acted on this bill, an increase
    in the minimum wage had not yet been enacted by Congress. If
    Congress enacts an increase in the minimum wage prior to the
    beginning of program year 2001, which begins April 1, 2001 for
    the youth activities grants, the conferees expect the
    Administration to submit a supplemental request for the 2001
    youth program as part of its fiscal year 2002 budget request.
    The conferees intend that the number of program participants to
    be served will not be decreased as a result of any minimum wage
    increase.
          The conference agreement includes $275,000,000 to expand
    to more communities the Youth Opportunity Grants aimed at
    increasing the long-term employment of youth who live in
    empowerment zones, enterprise communities, and other high-
    poverty areas.
          The conference agreement includes $55,000,000 for the
    Responsible Reintegration for Young Offenders initiative to
    address youth offender issues. This new initiative involving
    DOL, HHS, and DOJ, will build on work begun earlier.
          The conference agreement includes language authorizing
    the use of funds under the dislocated workers program for
    projects that provide assistance to new entrants in the
    workforce and incumbent workers as proposed by the Senate. The
    conference agreement also includes language to waive a 10
    percent limitation in the Workforce Investment Act with respect
    to the use of discretionary funds to carry out demonstration
    and pilot projects, multi-service projects and multi-state
    projects with regard to dislocated workers and to waive certain
    other provisions in that Act. The language is similar to that
    in the Senate bill. The House bill contained no similar
    provisions.
          The conference agreement includes a citation to the Women
    in Apprenticeship and Nontraditional Occupations Act as
    proposed by the House. The Senate bill did not cite this Act.
          The conferees direct the Department, within the funds
    appropriated for fiscal year 2000 for National Emergency Grants
    within the Dislocated Worker program, to respond to an
    anticipated request by the State of Wisconsin for emergency
    funds to address layoffs in the community of Wisconsin Rapids.
          The conferees direct the Department, within the funds
    appropriated for FY 2000 for National Emergency Grants within
    the Dislocated Worker program, to provide in response to an
    anticipated request by the State of North Carolina for $175,000
    in emergency funds to address major layoffs in the community of
    Gaston County.
          With respect to the projects listed below for both the
    Dislocated Worker program and the Pilots and Demonstrations
    authority, the conferees acknowledge changes under the
    Workforce Investment Act to develop and implement techniques
    and approaches, and demonstrate the effectiveness of
    specialized methods of addressing the employment and training
    needs of individuals. The conferees encourage the Department to
    ensure that these projects are coordinated with local Workforce
    Investment Boards. The conferees also encourage the Department
    of Labor to ensure that project performance is adequately
    documented and evaluated. The conference agreement includes the
    following amounts for the following projects and activities:
    Dislocated workers
          --$600,000 to develop and implement technology training
    through the Resource Recovery Program--Campbellsville
    University, TN;
          --$500,000 for Workforce Development project to retrain
    older incumbent workers for Montana workforce--Montana State
    University, Billings;
          --$1,600,000 to the Montana Tech Foundation for the
    Northwest Regional Miner--Training and Research Facility--
    Butte, Montana;
          --$800,000 for the River Valley Machine Tool Technology
    program to retrain displaced workers--Central Maine Technical
    College;
          --$1,400,000 for Coastal Enterprises Inc.'s New
    Enterprise Initiative Fund (NEIF) to provide training for
    dislocated workers to transition into new jobs--Maine;
          --$650,000 for the Iowa Training Opportunities Program;
          --$927,000 for the JobLinks Program;
          --$50,000 for Clemson University to retrain tobacco
    farmers;
          --$185,000 for the Hawaii Department of Labor/Kauai
    Cooperative Extension;
          --$464,000 for High Tech Training--Maui, Hawaii;
          --$861,000 for the Clayton College and State University
    in Georgia for a virtual education and training project;
          --$184,000 for the Adult Computer Skills Training
    Initiative (ACSTI) through the Education and Research
    Consortium of Western North Carolina, Inc.;
          --$464,000 for the Bethel Native Corp.--Alaska; and
          --$500,000 for the University of Alaska/Ketchikan
    Shipyards training program for shipyard workers.
    Pilots and demonstrations
          --$1,275,000 for the Mott Community College Workforce
    Development Institute for Manufacturing Simulation--access to
    electronic library of technology, developed as part of DOL's
    America's Learning Exchange--Michigan;
          --$1,000,000 for Jobs for America's Graduates, School-to-
    Work projects for at-risk young people;
          --$500,000 to the University of Mississippi for Workforce
    training to support real time captioning initiatives for the
    hearing disabled--Oxford, Mississippi;
          --$750,000 for Technology Tool Kit to train at-risk young
    people in occupations related to the use of automated
    identification technology--Mississippi Valley State University;
          --$850,000 to train Northern Maine's workforce for
    employment in the metal trades--Northern Maine Technical
    College;
          --$691,000 to the San Diego State University Foundation
    to implement innovative high-tech training programs;
          --$900,000 for the South Dakota Intertribal Bison
    Cooperative;
          --$700,000 for the Greater Columbus Ohio Chamber of
    Commerce Career Academies program--project to design and test
    programs in partnership with workforce development system;
          --$250,000 for Job Corps of North Dakota for the
    Fellowship Executive Training Program;
          --$276,000 to the City of Monrovia, CA to train youth in
    information technologies;
          --$1,059,000 to the Californina State Polytechnic
    University in Pomona, CA to develop technology training
    programs;
          --$921,000 to Precision Manufacturing Institute in
    Meadville, PA for training in the latest technology in the
    tooling and machine trades;
          --$921,000 to Enterprise State Junior College in
    Enterprise, AL for technology training in the College's Center
    for Higher Technology;
          --$369,000 to Employment Solutions in Lexington, KY;
          --$855,000 to Florida Community College at Jacksonville
    for aircraft maintenance training at the Aviation/Aerospace
    Center of Excellence;
          --$92,000 to the Chesapeake Center for Youth Development
    in Baltimore, MD for serving at-risk youth;
          --$276,000 to Benedictine Programs and Services in
    Ridgely, MD for serving at-risk youth through the Industrial
    Training Center;
          --$92,000 to Green Thumb, Inc. to conduct a program for
    low-income elders to develop entrepreneurial skills that
    utilize e-commerce and IT in Wadena, MN;
          --$500,000 for Kirkwood Community College and ACT, Inc.
    for workforce skills development in Iowa;
          --$500,000 for SMART Partner programs high-tech skills
    training through establishment of the Virtual Advanced
    Manufacturing Training Center--Des Moines Area Community
    College, Iowa;
          --$1,036,000 to the National Institute for Metalworking
    Skills in Fairfax, VA to serve youth and adults in the area's
    metalworking industry;
          --$464,000 for the American Indian Science and
    Engineering Society--Rural Computer Utilizaton Training;
          --$464,000 for the Maui Economic Development Board--Rural
    Computer Training;
          --$2,900,000 for the Remote Rural Hawaii Job Training
    project for low income youth and adults;
          --$3,200,000 for Samoan/Asian Pacific Job Training--
    Hawaii;
          --$4,000,000 for Training and Education Opportunities--
    University of Hawaii at Maui;
          --$200,000 for the Vermont Information Technology Center
    model information technology training initiative--Champlain
    College, Burlington, VT;
          --$750,000 for the Vermont Department of Employment and
    Training one-stop career resource centers;
          --$1,900,000 for the North Country Career Center model
    education and training program--Newport, VT;
          --$92,000 for the Westchester-Putnam Counties Consortium
    for Worker Education and Training, Inc. for apprenticeship and
    training programs to serve the NY construction industry;
          --$485,000 for Waukesha, Wisconsin, workforce training
    for economically disadvantaged youth and adults at La Casa de
    Esperanza;
          --$550,000 for the Dream Center to provide job and
    training skills for new labor market entrants or reentrants--
    LA, CA;
          --$300,000 for VT Technical College--Technology Training
    Initiative;
          --$880,000 for Focus:HOPE in Detroit for an Information
    Technologies Center that provides education and training
    programs to women and minorities;
          --$691,000 to Campbellsville (KY) Industrial Authority
    for programs to upgrade the information technology skills in
    the KY community;
          --$230,000 to Career Visions, Inc. in Louisville, KY to
    pilot computer-based assistive technology training;
          --$276,000 for Career Resources, Inc. in Louisville, KY
    to develop a basic computer training program focusing on
    workplace applications;
          --$461,000 to the University of Northern Iowa for a
    program to integrate immigrants and refugees into the
    workforce;
          --$493,000 to the Greater Sacramento Urban League, CA for
    an Urban Achievement Program targeting training, employment and
    support for urban youth;
          --$921,000 to Jones County Junior College in Ellisville,
    MS for development and implementation of a technology training
    program;
          --$921,000 for Haymarket Center in Chicago, IL, to
    provide training services through the Family Enrichment Center;
          --$921,000 to National Student Partnerships in
    Washington, DC;
          --$92,000 to the International Agri-Center, in Tulare, CA
    for a E-Commerce training initiative;
          --$650,000 for the UNLV Center for Workforce Development
    and Occupational Research;
          --$100,000 for the Community Self-Empowerment &
    Employment Program (CSEEP) (PA)--comprehensive employment
    readiness, job development, job placement, and case management
    for area low-income residents--Pennsylvania;
          --$500,000 for Philadelphia Revitalization and Education
    Program (PREP) to train minorities for careers in the building
    trades through its Diversity Apprenticeship Project (DAP)--
    Pennsylvania;
          --$921,000 to Wrightco Technologies, Inc. for information
    technology training through a ``Fast Track to the Future''
    program;
          --$480,000 for hands-on manufacturing training at the
    Manufacturing and Applied Technology Training Center (MATC)--
    Central Oregon Community College;
          --$100,000 for BASE, Inc. to provide occupational skills
    through its Youth Competency Development Program and training
    in the construction trades for low-income/minority women
    through partnership with Thaddeus Stevens State College of
    Technology--Lancaster, PA;
          --$250,000 for Green Thumb, Inc.--conduct program for
    low-income elders to develop computer skills--Pennsylvania;
          --$500,000 for Allegheny County, Pennsylvania, training
    of information technology workers;
          --$300,000 for Lehigh University Job Training for hard to
    serve disadvantaged youth in manufacturing sector---PA;
          --$638,000 for the Collegiate Consortium for Workforce &
    Economic Development, Philadelphia Naval Business Center--PA;
          --$232,000 for the Yukon Kushokwim Health Corporation--
    Alaska;
          --$300,000 for Koahnic Broadcasting--Alaska;
          --$550,000 for Kawerak, Inc. Vocational Training for
    Alaska Natives--Nome, Alaska;
          --$800,000 for Ilisagvik College--Barrow, Alaska;
          --$927,000 for the Alaska Federation of Natives
    Foundation;
          --$900,000 for Tlingit-Haida project--job training to
    unemployed natives in southeast Alaska;
          --$2,300,000 for Alaska Works, Construction Job
    Training--Fairbanks, Alaska;
          --$2,500,000 for the University of Alaska Fairbanks in
    consultation with Western Alaska regional Native non-profit
    corporations to conduct job training programs;
          --$1,250,000 for the Alaska Native Heritage Center, and
    Bishop Museum in Hawaii;
          --$921,000 for Transylvania Vocational Services, Inc. in
    Brevard, NC for training people with developmental
    disabilities;
          --$184,000 for the More Opportunities for Viable
    Employment program through the Tulare (CA) County Office of
    Education, Services for Education and Employment Division;
          --$276,000 to the South Metro Regional Leadership Center
    in University Park, IL;
          --$2,037,000 to the Lawton & Rhea Chiles Center for
    Healthy Mothers and Babies in Tampa, FL for training
    paraprofessionals in the health-care field;
          --$170,000 for Community Technology and Education Center
    at the Los Angeles River Center and Gardens in California for a
    job training initiative;
          --$43,000 to Signature Academy Inc., to further develop
    the Exodus to Excellence Youth Program;
          --$850,000 for Sinclair Community College, Dayton, Ohio
    for an out-of-school youth training project;
          --$850,000 to Kingston-Newburgh Enterprise Community,
    Newburgh, New York, for a workforce development project;
          --$213,000 to the Sullivan-Warwarsing Rural Economic Area
    Partnership, in Ferndale, New York for the planning and
    development of a manufacturing technology training center;
          --$723,000 for Reading Berks Emergency Shelter, Reading,
    Pennsylvania to provide employment and training opportunities
    for disadvantaged individuals;
          --$213,000 to the Melwood Horticultural Training Center,
    Upper Marlboro, Maryland, for workforce training for the
    disabled;
          --$340,000 to the Safer Foundation, Chicago, Illinois for
    a workplace acclimation program for ex-offenders;
          --$170,000 for South Suburban College, South Holland,
    Illinois to expand a bus mechanic workforce development
    program;
          --$102,000 to the Dallas Urban League, Inc. in Dallas,
    Texas for the ACES program to provide literacy and job skills
    to disadvantaged youth and adults;
          --$765,000 to The West Side Industrial Retention and
    Expansion Network (WIRE-Net), Cleveland, Ohio;
          --$43,000 to Full Employment Council in partnership with
    the Greater Kansas City AFL-CIO in Missouri for Project
    Prepare;
          --$85,000 to Alderson-Broaddus College, College Hill,
    Philippi, West Virginia for a collaborative information
    technology training program;
          --$595,000 for the Hiram G. Andrews Rehabilitation Center
    in Johnstown, Pennsylvania to expand a job training program for
    people with disabilities;
          --$590,000 for the Northwest Concentrated Employment
    Program in Ashland, Wisconsin, for an online skill matching
    initiative tied to the O*Net database;
          --$510,000 to the Berkshire Applied Technology Council,
    Inc., Pittsfield, Massachusetts to expand training and develop
    distance learning;
          --$1,275,000 to the San Francisco Department of Human
    Services, California, for its Community Jobs Initiative;
          --$616,000 to the Charity Cultural Services Center, San
    Francisco, California, for job training;
          --$468,000 for the Rebirth of Englewood Community
    Development Corporation in Chicago, Illinois for a job training
    initiative in partnership with the ITT Research Institute;
          --$468,000 for the Northern Great Plains Initiative for
    Rural Development, Crookston, Minnesota, to provide education
    and training in technology support;
          --$298,000 to Kent State University in Ohio for the Ohio
    Employee Ownership Center, for workplace development; and
          --$425,000 to Rhode Island Department of Labor and
    Training, Providence, Rhode Island, for a job training program;
          There is a shortage of trained closed captioners to
    enable the deaf and hard of hearing community to get news and
    other vital information from live television. In order to meet
    the requirements set forth by the Telecommunications Act of
    1996, there is an urgent need for pilot programs to increase
    the availability of trained closed captioners. The conferees
    urge the Employment and Training Administration to invest in
    and support research and pilot programs, which would allow for
    an adequate number of captioners to be trained.
          The conferees believe that the Association of Farmworker
    Opportunity Programs provides valuable technical assistance and
    training to grantees and has distinguished itself as a
    tremendous resource. Its Children in the Fields Campaign
    provides information, education, and technical assistance
    related to child labor in agriculture. The Campaign also
    provides other assistance related to employment, training
    (including pesticide and other worker safety training for
    children and adults). The Department is encouraged to continue
    the services that the Association provides in these areas.
          The conferees urge the Employment & Training
    Administration to demonstrate programs that build upon
    identified best practices such as the Public/Private Venture's
    model workplace mentoring pilot program.
          The conferees are concerned with the lack of mentoring
    and other support services available to the youth of
    incarcerated parents or legal guardians. The conferees urge the
    Employment and Training Administration to fund demonstration
    programs to meet the special needs of these youth. These
    activities should build upon identified best practices such as
    the U.S. Dream Academy's model which helps youths with parents
    or guardians involved in life cycles of incarceration and
    release. Its aim is to help these youths become good and
    productive citizens.
          The fiscal year 2000 conference report (H. Rept. 106-479)
    included $1,000,000 for the Massachusetts Corporation for
    Business, Work and Learning for the International Shipbuilding
    Training Demonstration project. However, the reopening of the
    Fore River Shipyard in Quincy has been delayed. Workers
    dislocated from the closing of the shipyard still need job
    training; therefore, the Department is directed to use the
    $1,000,000 in the fiscal year 2000 appropriation to fund the
    Corporation for Business, Work and Learning for the Training of
    workers in the Quincy area for jobs within the Marine and
    Shipbuilding industries.

         State Unemployment Insurance and Employment Service Operations

          The conference agreement includes $3,365,698,000 for
    state unemployment insurance and employment service operations
    instead of $3,097,790,000 as proposed by the House and
    $3,249,430,000 as proposed by the Senate. The agreement
    includes $35,000,000 instead of the $25,000,000 proposed by the
    Senate for reemployment services grants to insure that
    unemployment insurance claimants will be able to get the
    customized re-employment services they need to speed their
    reentry to employment. The House provided no funding for this
    program.
          The conference agreement includes $26,100,000 for the
    foreign labor certification program as proposed by the House
    instead of $25,600,000 as proposed by the Senate. For one-stop
    centers/labor market information, the agreement includes
    $150,000,000 instead of the $110,000,000 proposed by the
    Senate. The House provided no funding for this program. These
    funds will be used to support infrastructure upgrades at the
    State level for one-stop career center system operations, labor
    market information, and integrated services to employers and
    job seeker customers.

                             Program Administration

          The conference agreement includes $159,158,000 for
    program administration instead of $146,000,000 as proposed by
    the House and $156,158,000 as proposed by the Senate. The
    detailed table at the end of this joint statement reflects the
    activity distribution agreed upon. The conference agreement
    also includes funding for management and oversight of pilot and
    demonstration projects and additional administrative funding
    for backlog reduction in the alien labor certification program
    as listed in the Senate report.

                  Pension and Welfare Benefits Administration

                             Salaries and Expenses

          The conference agreement includes $107,832,000 for the
    pension and welfare benefits administration, salaries and
    expenses instead of $98,934,000 as proposed by the House and
    $103,342,000 as proposed by the Senate. The increase will fully
    fund the request for expanded health and pension education and
    outreach efforts and enhanced pension enforcement.

                      Pension Benefit Guaranty Corporation

          The conference agreement includes $11,652,000 for the
    administrative expense limitation as proposed by the Senate
    instead of $11,148,000 as proposed by the House.

                      Employment Standards Administration

                             Salaries and Expenses

          The conference agreement includes $363,476,000 for the
    employment standards administration, salaries and expenses
    instead of $338,770,000 as proposed by the House and
    $352,764,000 as proposed by the Senate. This amount fully funds
    the request for ESA, including the Wage and Hour Division's
    request to expand its domestic child labor compliance and
    enforcement efforts; and the Office of Federal Contractor
    Compliance's activities to increase outreach, education, and
    technical assistance to federal contractors through industry
    partnerships on equal pay issues; and a customer communications
    initiative in the Office of Worker's Compensation.
          On contracts for the provision of debt collection
    services, the Department of Labor shall continue to recognize
    the payment of commissions in the determination of McNamara-
    O'Hara Service Contract Act (SCA) wage rates and shall continue
    to recognize such payments as an offset against an employer's
    SCA prevailing wage obligation. In addition, the Department is
    encouraged to consider the special circumstances for
    contingency fee-based debt collection contracts and the
    potential fluctuations in commissions, particularly for less
    experienced employees.

                                Special Benefits

          The conference agreement includes bill language to allow
    the Secretary to use fair share collections to fund capital
    investment projects and special investments to strengthen
    compensation fund control and oversight. The amounts cited in
    the House and Senate bills have been modified to reflect
    updated estimates of fair share collections from the non-
    appropriated agencies, such as the Postal Service, for fiscal
    year 2001.

                        Black Lung Disability Trust Fund

          The conference agreement includes a definite annual
    appropriation of $975,343,000 for black lung benefit payments
    and interest payments on advances made to the Trust Fund as
    proposed by the House instead of an indefinite permanent
    appropriation as proposed by the Senate.

                 Occupational Safety and Health Administration

                             Salaries and Expenses

          The conference agreement includes $425,983,000 for
    occupational safety and health administration, salaries and
    expenses as proposed by the Senate instead of $381,620,000 as
    proposed by the House. The conference agreement does not
    include language proposed by the Senate that would have
    earmarked $22,200,000 of the increase over the fiscal year 2000
    appropriation for education, training, and consultation
    activities. The House bill contained no similar provision. The
    detailed table at the end of this joint statement reflects the
    conferees' agreed upon activity distribution.

                     Mine Safety and Health Administration

                             Salaries and Expenses

          The conference agreement includes $246,747,000 for mine
    safety and health administration, salaries and expenses instead
    of $233,000,000 as proposed by the House and $244,747,000 as
    proposed by the Senate. The conference agreement includes
    $2,500,000 over the budget request for physical improvements at
    the National Mine Safety and Health Academy.
          The conference agreement includes language proposed by
    the Senate that allows MSHA to retain and spend up to
    $1,000,000 in fees collected for the approval and certification
    of mine equipment and materials. The conference agreement also
    includes language establishing a $1,000,000 contingency fund
    for mine rescue and recovery activities. The House bill
    contained no similar provisions.
          Concerns have been expressed about the possible
    ramifications of a rulemaking on the use of conveyor belts in
    underground coal mines, including concerns about the validity
    of the testing on which the rule is based. MSHA is urged to
    carefully examine the record and to conduct additional research
    that may be required to address any significant concerns that
    have been raised.
          The conferees are extremely concerned by a recent
    catastrophe in Eastern Kentucky. Millions of gallons of slurry
    coal waste broke free from an impoundment causing considerable
    damage to the environment and disrupting water supply for
    citizens along the Big Sandy and Ohio Rivers. The conferees
    believe this event warrants a thorough examination of current
    coal waste disposal methods and an exploration of future
    dumping alternatives. Therefore, the conference agreement
    includes $2,000,000 for a contract with the National Academy of
    Sciences to examine engineering standards for coal waste
    impoundments, provide recommendations for improving impoundment
    structure stabilization, and evaluate potential alternatives
    for future coal waste disposal, including the benefits of each
    alternative. The Academy shall seek the participation of
    representatives of relevant federal, state, and private
    entities, to include MSHA, OSM, EPA, Corps of Engineers, State
    mining authorities, and mining companies. Findings of this
    study shall be conveyed to the Committees on Appropriations no
    later than October 15, 2001.

                           Bureau of Labor Statistics

                             Salaries and Expenses

          The conference agreement includes $451,584,000 for Bureau
    of Labor Statistics, salaries and expenses instead of
    $440,000,000 as proposed by the House and $446,584,000 as
    proposed by the Senate. The conference agreement also includes
    the Senate provision making $10,000,000 available for
    obligation on a program year basis from July 1, 2001 to June
    30, 2002. The House bill contained no similar provision. This
    funding level provides increases for improvements to existing
    economic measures, improvements in labor market information
    mandated by WIA, and a new time use survey.

                            Departmental Management

                             Salaries and Expenses

          The conference agreement includes $380,839,000 for
    departmental management, salaries and expenses instead of
    $244,889,000 as proposed by the House and $337,964,000 as
    proposed by the Senate.
          The conference agreement includes $148,150,000 for the
    Bureau of International Labor Affairs instead of $70,000,000 as
    proposed by the House and $115,000,000 as proposed by the
    Senate. The conference agreement also includes language
    proposed by the Senate to authorize the expenditure of funds
    for the management or operation of Departmental bilateral and
    multilateral foreign technical assistance through grants and
    contracts. The funds for bilateral assistance are made
    available through September 30, 2002. The House bill contained
    no similar provision. In total, the conference agreement
    includes $82,000,000 to assist developing countries with the
    elimination of child labor. Of this amount, $45,000,000 is for
    expansion of ILO's International Programme for the Elimination
    of Child Labor. In addition, $37,000,000 is provided for
    bilateral assistance to improve access to basic education in
    international areas with a high rate of abusive and
    exploitative child labor. These new bilateral initiatives
    should be developed in consultation and coordination with USAID
    to ensure these programs fit with the overall foreign
    operations policy of the Administration and are in compliance
    with the Foreign Assistance Act. The conference agreement
    includes $45,000,000 as proposed by the Senate to augment the
    capacity of Ministries of Labor to enforce labor standards, to
    develop social safety net programs, and to develop information
    on enforcement of labor laws around the world. The conference
    agreement includes $10,000,000 for the Global HIV-AIDS
    Workplace Initiative, and these funds are provided in the
    Department of Labor appropriation instead of the HHS Public
    Health and Social Services Emergency Fund as proposed by the
    Senate.
          The conferees also include funding for the following
    activities:
                --$900,000 to the University of Iowa for research
            on the issue of abusive and exploitive child labor and
            other labor-related issues; and
                --$250,000 to the Association of Farmworker
            Opportunities Programs for public education on abusive
            child labor.
          The conferees note from the recent World AIDS Conference
    that many national economies continue to be profoundly and
    adversely affected by the HIV-AIDS pandemic. For example,
    employers in South Africa are now hiring two employees for
    every one skilled job. The gross domestic product in many
    countries in Africa and Asia is actually contracting because of
    a shrinking adult work force attributable to HIV-AIDS related
    deaths. At the same time, there is mounting evidence that
    workplace-based HIV-AIDS education and prevention programs can
    help prevent the spread of HIV, especially in high-risk
    occupations. Such programs can help stem employers' loss of
    skilled workers, reverse declining productivity, and provide
    mechanisms for caring for workers living with HIV and AIDS.
    Consequently, the conferees expect ILAB to assume a leading
    role in developing innovative business-trade union partnerships
    to improve HIV-AIDS prevention and to improve coordination
    among the Labor Department, Commerce Department, and USAID.
          The conference agreement includes $23,002,000 and
    language establishing the Office of Disability Employment
    Policy in the Department of Labor as proposed by the Senate.
    The House bill continued funding for the President's Committee
    on Employment of People with Disabilities, but this activity is
    subsumed in the new Office of Disability Employment Policy.
          The conference agreement includes $37,000,000 to
    establish a permanent, centralized information technology
    investment fund.

                        Veterans Employment and Training

          The conference agreement includes $211,713,000 for
    veterans employment and training instead of $201,277,000 as
    proposed by the House and $206,713,000 as proposed by the
    Senate. Included in this amount is $17,500,000 for the homeless
    veterans program.

                          Office of Inspector General

          The conference agreement includes $54,785,000 for the
    office of inspector general as proposed by the Senate instead
    of $51,925,000 as proposed by the House.

                               GENERAL PROVISIONS

                                   Ergonomics

          The conference agreement does not include a provision
    included in both the House and Senate bills relating to
    regulations issued by the Occupational Safety and Health
    Administration relating to ergonomic protection.

           Extended Deadline for Expenditure of Welfare to Work Funds

          The conference agreement includes a provision proposed by
    the Senate extending the availability of Welfare to Work
    funding from three to five years. The House bill contained no
    similar provision.

                                H2A Regulations

          The conference agreement includes a modified version of
    the Senate provision prohibiting the implementation or
    enforcement of the pending H2A regulations, but allows for all
    activities related to the development of revised regulations.
    The conferees support the efforts by the Secretary of Labor and
    the Attorney General designed to streamline the H2A application
    process. The conferees expect the Department and the
    Immigration and Naturalization Service to work closely with the
    stakeholders to expeditiously address concerns raised by the
    growers so that the streamlined application process produces a
    more efficient new system.

       Deadline for Determination on Housing Requirements for H2A Workers

          The conference agreement includes a provision regarding
    housing inspections for H2A temporary agricultural laborers.
    This provision ensures that the deadline for housing
    inspections for H2A workers corresponds with the Secretary's
    thirty day statutory deadline for making H2A temporary
    agricultural labor certification decisions. The thirty day
    deadline may have been effectively nullified in some cases by
    the current regulations requiring that inspections on employer
    provided housing need not be completed until twenty days before
    the date the employer needs H2A workers. The provision requires
    housing inspections to be completed in time for the Secretary
    to make her certification decision in accordance with the
    thirty day statutory deadline.

                           Alien Labor Certification

          The conference agreement includes a provision that
    authorizes the use of H1B fee revenue to process permanent
    labor certifications. This is needed because the recent
    legislation increasing the number of H1B visas authorized will
    result in a substantial increase in the volume of permanent
    labor certification applications. The Department of Labor has
    made significant progress over the past 18 months to reduce the
    backlog of applications for permanent labor certifications, and
    in expediting the labor condition application process for the
    H-1B program. In order to allow the Department to make further
    progress on timeliness of labor certifications without
    undermining the review process, the Department will be
    permitted to utilize a portion of fees generated by the H-1B
    program to support the administration of the permanent labor
    certification program.

               Elimination of Welfare to Work Performance Bonuses

          The conference agreement includes a provision proposed by
    the Senate to eliminate Welfare to Work performance bonuses.
    The House bill contained no similar provision.

               TITLE II--DEPARTMENT OF HEALTH AND HUMAN SERVICES

                  Health Resources and Services Administration

                         Health Resources and Services

          The conference agreement includes $5,525,476,000 for
    health resources and services instead of $4,784,232,000 as
    proposed by the House and $4,677,424,000 as proposed by the
    Senate.
          The conference agreement includes bill language
    identifying $226,224,000 for the construction and renovation of
    health care and other facilities instead of $10,000,000 as
    proposed by the Senate. The House bill contained no similar
    provision. These funds are to be used for the following
    projects: Northwestern University Life Sciences Building;
    ACCESS Community Health Network in Illinois; Northwestern
    Memorial Hospital; University of Chicago Core Genetics Research
    Facility; Condell Medical Center, Regional Center for Cardiac
    Health Services; Lake County Health Department; University
    Center of Lake County, Illinois; Finch University of Health
    Sciences/Chicago Medical School; Pennington Biomedical Research
    Center in Baton Rouge, Louisiana; Texas Institute for
    Rehabilitation and Research; Massey Cancer Center of Virginia
    Commonwealth University; Aurelia Osborn Fox Memorial Hospital
    in Oneonta, New York; Margaretville Memorial Hospital in
    Margaretville, New York; Martha's Village and Kitchen Medical
    Clinic in Indio, California; Hanson House at the Desert
    Regional Medical Center; Nutrition Center at Wake Forest
    University Baptist Medical Center; James Whitcomb Riley
    Hospital for Children in Indianapolis, Indiana; University of
    South Alabama Gulf Coast Cancer and Research Institute; North
    Baldwin Hospital Surgery Center in Bay Minette, Alabama; Monroe
    County Hospital in Monroesville, Alabama; Touro University
    College of Osteopathic Medicine in Vallejo, California; Medical
    Sciences Building at the University of Cincinnati Medical
    Center in Cincinnati, Ohio; Tinnitus Center for Tinnitus
    Retraining Therapy at the University of North Carolina at
    Greensboro; Alfred E. Mann Institute and Biomedical Engineering
    Center at the University of Southern California; Paradise
    Valley Hospital in National City, California; Children's
    Hospital and Health Center in San Diego, California; Dental
    Education in Care of Disabled Clinic at the University of
    Washington; Alexander Hughes Community Center in Claremont,
    California; Biomedical Marine Research Facility at Harbor
    Branch; Kessler Rehabilitation Research Institute in West
    Orange, New Jersey; Child Health Institute of New Jersey;
    University of Nevada Las Vegas Biotechnology/Bioengineering
    Research Facility; McCready Health Services Foundation in
    Crisfield, Maryland; Center for Health Sciences at Dominican
    College in Rockland County, New York; Pediatric Cardiac
    Intensive Care Unit at Cook Children's Medical Center in Fort
    Worth, Texas; Tricounty Health Center at Northern Illinois
    University; Aurora Primary Care Consortium; Turning Point
    Facility in Union County, North Carolina; Gila River Indian
    Community Diabetes Center in Arizona; Dalton Cardiovascular
    Research Center at the University of Missouri at Columbia;
    Scripps Memorial East County Hospital in El Cajon, California;
    Marklund Children's Home; Misericordia Hearts of Mercy in
    Chicago, Illinois; University of Connecticut Health Center;
    Nassau County Health Care Corporation; Women's Health Center at
    Proctor Hospital in Peoria, Illinois; Oklahoma Medical Research
    Foundation; Louisiana State University Health Sciences Center
    Feist-Weiller Cancer Center in Shreveport, Louisiana; Lewis
    County General Hospital in Lewis County, New York; Stetson
    University in Deland, Florida; National Center for Primary Care
    at Morehouse School of Medicine; Springdale Community Health
    Center in Springdale, Washington; Edgemoor Geriatric Hospital
    in San Diego County, California; Union Hospital Midwest Center
    for Rural Health in Terre Haute, Indiana; Bennett W. Smith
    Family Life Wellness Center in Buffalo, New York; Children's
    Hospital of Buffalo; Fresno Community Hospital and Medical
    Center Regional Ambulatory Care Facility in Fresno, California;
    Pediatric Oncology and the Batchelor Children's Research Center
    at the University of Miami/Jackson Memorial Medical Center;
    Valley Hospital Cancer and Ambulatory Care Center in Paramus,
    New Jersey; Functional Genomics Research Center at Florida
    Atlantic University in Boca Raton, Florida; Michael and Dianne
    Bienes Cancer Center at Holy Cross Hospital in Ft. Lauderdale,
    Florida; Outpatient Surgery Facility at Memorial Hospital in
    Towanda, Pennsylvania; University of Scranton Allied Health
    Laboratory; Southern Illinois Healthcare Foundation in East St.
    Louis, Illinois; University of St. Francis in Fort Wayne,
    Indiana; Maricopa Integrated Health Systems in Phoenix,
    Arizona; Albany Medical Center Breast Cancer Diagnostic and
    Treatment Center in Albany, New York; Adirondack Medical Center
    in Saranac Lake, New York; Mary McClellan Hospital in
    Cambridge, New York; North Central Texas Community Health Care
    Center in Wichita Falls, Texas; St. Joseph's Hospital New York
    Regional Hemodialysis and Cardiac Care Enhancement Center in
    Syracuse, New York; Stroud Regional Hospital in Stroud,
    Oklahoma; Will County Health Center in Illinois; Molecular
    Genetics Core for the Center for Excellence in Cardiovascular-
    Renal Research at the University of Mississippi Medical Center;
    Tallahatchie General Hospital and Extended Care Facility in
    Charleston, Mississippi; Operation PAR in Pinellas Park,
    Florida; Detroit Medical Center, Women's and Children's health
    facility; Detroit Medical Center, Rehabilitation Institute of
    Michigan; Big Springs Medical Association in Missouri;
    Southeast Missouri Health Network; People's Health Center in
    St. Louis, Missouri; Denver Children's Hospital; National
    Jewish Medical and Research Center in Denver; Breast Cancer
    Center at Our Lady of Fatima Hospital in North Providence,
    Rhode Island; Jackson Medical Mall, Mississippi Institute for
    Cancer Research; Conehatta Tribal Community Health Care Clinic;
    Sharkey/Issaquena Hospital, Rolling Fork, Mississippi; Jackson
    Laboratory Physiogenomics facility in Maine; St. Joseph's
    Hospital in Ohio; Huron Hospital in Cleveland, Ohio; Ohio
    Poison Control Collaborative; Boys Town National Research
    Hospital in Omaha, Nebraska; University of Utah's Huntsman
    Cancer Institute; University of North Carolina Genomics and
    Bioinformatics; Burlington Community Health Center, Burlington,
    Vermont; Red Logan Community Health Center; Vermont Cancer
    Center; Vermont Lung Association Asthma Clinic; University of
    Mississippi, Guyton Building Expansion; Haysi Medical Clinic in
    Virginia; Allegheny-Clarion Valley Community Health Center;
    University of Alabama-Birmingham, Interdisciplinary Biomedical
    Research Facility; Umatilla County Public Health Facility;
    Bioengineering Research Facility at Oregon Health Sciences
    University; Temple University Outpatient Facility; Philadelphia
    College of Osteopathic Medicine; Thomas Jefferson University
    Cancer Research Facility; State of Alaska Public Health
    Laboratory in Anchorage; ``Pathways Home'' inpatient facility
    for the Southcentral Foundation; Montezuma Creek Health Care
    Center; Sorenson Multicultural Health Center; Midvale/West
    Jordan and Glendale, Utah Health Centers; St. Vincent Hospital
    in Billings, Montana; Rocky Mountain Regional Trauma Center at
    Denver Health and Hospital Authority; Carriozo Health Clinic;
    Dan C. Trigg Memorial Hospital; El Pueblo Health Services; La
    Clinica de Familia in Chaparral, New Mexico; La Clinica de
    Familia in San Miguel, New Mexico; Las Clinical del Norte De
    Abiquiu; Logan Family Clinic in New Mexico; Montgomery Women's
    Health Services Clinic of Lea County; Mora Community Health
    Service; Ruidoso Sub-station Health Service; Sierra Vista
    Family Community Clinic; Tatum Health Clinic; Children's
    National Medical Center in Washington; Arkansas Children's
    Hospital; Biomedical Biotechnology Center at the University of
    Arkansas Medical School in Little Rock; University of Arkansas,
    Fayetteville, Center for Protein Structure and Function;
    University of Arkansas, Little Rock, Applied Biosciences
    Program; Kansas University Human Imaging Institute; North
    Philadelphia Health System; Children's Health Fund; Crozer-
    Keystone Health System in Delaware County; Family Care Health
    Center in St. Louis, Missouri; Cathedral Healthcare System;
    Chase Brexton Health Services, Inc.; Children's Hospital of
    Boston; Children's Hospital of Wisconsin Neonatal Intensive
    Care Unit; Daviess County Community Health Center; Family
    Health Centers, Inc. of Orangeburg, South Carolina; Community
    Health facilities in southeast Iowa; Hillside Hospital in Long
    Island, New York; La Rabida Children's Hospital, Chicago;
    Marquette University School of Dentistry; Medical University of
    South Carolina Oncology Center; Molokai General Hospital; New
    York University School of Medicine; Palmer College of
    Chiropractic in Davenport, Iowa; Pioneer Valley Life Sciences
    Joint Venture between the University of Massachusetts and
    Baystate Medical Center; Rio Arriba County Residential
    Treatment Facility; Rutland Regional Medical Center; Sea Island
    Comprehensive Health Care Corporation; St. Mary's Healthcare
    Promotion Center in Huntington, West Virginia; St. Mary's Women
    and Infants Center of Dorchester; the Neurosciences program at
    West Virginia University; Tufts University Center for Nutrition
    Research; University of South Carolina School of Public Health;
    University of Vermont College of Medicine and Fletcher Allen
    Health Care; University of Nevada, Las Vegas Cancer Center;
    University of Montana Center for Environmental Health Sciences;
    University of Florida Genetics Institute; Hackensack University
    Medical Center in Hackensack, New Jersey; Brandeis University
    National Center for the Study of Behavioral Genetics and
    Genomics; Marlborough Hospital in Marlborough, Massachusetts;
    West Virginia University Eastern Panhandle Clinical Campus in
    Martinsburg; St. Mary's Hospital for Children, Bayside, New
    York; Virginia Mason Medical Center, Seattle, Washington;
    Memorial Hospital of Lafayette County, Darlington, Wisconsin;
    Saginaw Cooperative Hospitals, Inc., Saginaw, Michigan; El
    Sereno Family Health Center, El Sereno, Los Angeles; Community
    College of Southern Nevada Medical Careers Center, North Las
    Vegas, Nevada; Columbia County Senior Services, Lake City,
    Florida; San Luis Obispo medical therapy unit, California;
    Greene County Health Care, Inc., Snow Hill, North Carolina; St.
    Clair County, Belleville, Illinois, senior center and wellness
    clinic; Sunshine House, New Haven, Connecticut; City of Culver
    City, California, senior health and social services center;
    Community Partners Healthnet Inc., Snow Hill, North Carolina;
    North Shore Long Island Jewish Health System, Hillside Hospital
    Campus, Glen Oaks, New York; Cooper Green Hospital, Birmingham,
    Alabama; Whitman-Walker Clinic, Inc., Washington, DC; Prince
    George's Hospital Center, Cheverly, Maryland; Roseland
    Community Hospital, Chicago, Illinois; Metropolitan Family
    Services, Chicago, Illinois, mental and public health facility;
    South Suburban Family Shelter Inc., Homewood, Illinois; Rush-
    Presbyterian-St. Luke's Medical Center, Chicago, Illinois; Lake
    Charles Memorial Hospital, Lake Charles, Louisiana; West End
    Medical Centers, Atlanta, Georgia; New York Structural Biology
    Center, New York, New York; Memorial Freeport-Roosevelt Health
    Center, Roosevelt, New York; University of North Carolina at
    Wilmington School of Nursing, Wilmington, North Carolina;
    Joseph P. Addabbo Family Health Center, Arverne, New York; Los
    Angeles Eye Institute, Los Angeles, California, Boston College,
    Chestnut Hill, Massachusetts; West Liberty State College Dental
    Hygiene Clinic, West Liberty, West Virginia; Grafton City
    Hospital, Grafton, West Virginia; New York University Downtown
    Hospital, New York City, New York; Saint Michael's Hospital,
    Stevens Point, Wisconsin; Holyoke Health Center, Holyoke,
    Massachusetts; Montefiore Medical Center, Bronx, New York;
    Christopher Rural Health Planning Corporation, Christopher,
    Illinois; Centro de Salud Familiar La Fe, El Paso, Texas;
    Englewood Hospital and Medical Center, Englewood, New Jersey;
    Plaza Community Center, Inc., Los Angeles, California,
    children's health and social services center; Fairview
    University Medical Center, Minneapolis, Minnesota; Asian Human
    Services community health center, Chicago, Illinois; Strong
    Memorial Hospital, Rochester, New York; University of Arkansas
    Medical Sciences, Little Rock, Arkansas; Trinity Health
    Systems, Detroit, Michigan; Henderson County Rural Health
    Center in Oquawka, Illinois; and City of Summersville, West
    Virginia, senior health and social services facility.
          The conferees are supportive of the efforts of the
    Academic Medicine Development Corporation to implement a
    strategic initiative for human genetics research in New York.
          The conference agreement includes bill language
    identifying $253,932,000 for family planning instead of
    $238,932,000 as proposed by the House and $253,932,000 as
    proposed by the Senate. The conferees concur with Senate report
    language regarding the distribution of funds appropriated for
    Title X.
          The conference agreement includes bill language to
    provide $30,000,000 for abstinence education in fiscal year
    2002 as proposed by the House. The Senate bill contained no
    similar provision.
          The conference agreement includes $1,168,700,000 for
    community health centers as proposed by the Senate instead of
    $1,100,000,000 as proposed by the House. Within the total
    provided, $6,250,000 is for native Hawaiian health programs.
          The conferees recognize the long-standing commitment and
    expertise of the University of Hawaii in addressing the unique
    health care needs of the Pacific Basin region.
          The conferees urge HRSA to give full and fair
    consideration to proposals to support expanded services to
    reach priority populations in under-served communities in Kane,
    Marion, Saline, and Will, Illinois counties on the southwest
    side of Chicago and in the AAPI community on the north side of
    Chicago.
          The conference agreement includes $41,523,000 for the
    national health service corps, field placements instead of
    $39,823,000 as proposed by the House and $38,116,000 as
    proposed by the Senate.
          The conference agreement includes $87,924,000 for
    national health service corps, recruitment instead of
    $81,524,000 as proposed by the House and $78,625,000 as
    proposed by the Senate. Within the total provided, $4,000,000
    is for State offices of rural health. The conferees recommend
    that national health service corps loan repayment awards
    continue to be made in areas of greatest need.
          The conference agreement includes $638,048,000 for health
    professions instead of $410,987,000 as proposed by the House
    and $230,714,000 as proposed by the Senate. Within the total
    provided, $235,000,000 is for children's graduate medical
    education. Also within the total provided for allied health
    special projects, $921,000 is for expansion of the Illinois
    Community College Board's program, in coordination with the
    Illinois Department of Human Services, to train and place
    welfare recipients in the allied health field using distance
    technology. The amount provided does not include funding to
    continue the demonstration project by the Utah area health
    education centers.
          The conferees concur with House and Senate report
    language regarding priority consideration for health careers
    opportunities program (H-COP) grants to minority health
    professions institutions.
          The conferees urge HRSA to give full and fair
    consideration to proposals to expand access to primary and
    dental care services for medically underserved populations
    located in the areas of St. Louis City, and the Missouri
    counties of Jefferson, Lafayette, Greene, and Douglas.
          The conference agreement includes $18,016,000 for
    Hansen's disease services instead of $17,016,000 as proposed by
    both the House and the Senate. Within the total provided,
    $900,000 is for the Diabetes Lower Extremity Amputation
    Prevention program at the University of South Alabama.
          The conference agreement includes $714,230,000 for the
    maternal and child health block grant instead of $709,130,000
    as proposed by both the House and the Senate. The conference
    agreement includes bill language designating $113,728,000 of
    the funds provided for the block grant for special projects of
    regional and national significance (SPRANS) as proposed by the
    House. It is intended that $5,000,000 of the SPRANS amount will
    be used for the continuation of the traumatic brain injury
    State demonstration projects as authorized by title XII of the
    Public Health Service Act. The Senate bill contained no similar
    provision, instead it provided $5,000,000 as a separate line
    item in the table for traumatic brain injury. It is also
    intended that $5,000,000 of the SPRANS amount will be used for
    Columbia Hospital for Women Medical Center in Washington, DC to
    support community outreach programs for women and $100,000 will
    be used for the St. Joseph's Health Services of Rhode Island
    for the Providence Smiles dental program for low-income
    children.
          The conferees are supportive of HRSA's efforts in
    preventing youth suicides. HRSA has made reducing the rate of
    youth suicide a priority for State MCH agencies, requiring
    States to address the crisis of suicide with their block grant
    funding.
          The conference agreement includes $90,000,000 for healthy
    start as proposed by both the House and Senate. It is intended
    that these projects will be evaluated and those activities that
    are proven successful and can be replicated will be
    incorporated into the mission of the maternal and child health
    block grant program.
          The conference agreement includes $8,000,000 for newborn
    and infant hearing screening as proposed by the House instead
    of $4,000,000 as proposed by the Senate.
          The conference agreement includes $15,000,000 for organ
    transplantation as proposed by the Senate instead of
    $10,000,000 as proposed by the House.
          The conference agreement includes $22,000,000 for the
    bone marrow program as proposed by the House instead of
    $17,959,000 as proposed by the Senate. The conferees continue
    to be aware of the life saving success of the National Marrow
    Donor Program, which now includes more than 4,000,000 potential
    volunteer donors. The conferees recognize the continuing need
    to increase minority representation in the national registry
    and support expansion of the National Marrow Donor Program's
    cord blood bank initiative, which provides another major source
    of donors for patients, particularly minority patients, in need
    of a marrow or blood stem cell transplant.
          The conference agreement includes $58,218,000 for rural
    health outreach grants instead of $30,867,000 as proposed by
    the House and $38,892,000 as proposed by the Senate. The
    conferees are supportive of HRSA providing heart defibrillators
    to rural areas.
          The conferees include the following amounts for the
    following projects and activities in fiscal year 2001:
          --$50,000 for the La Crosse Health Science Consortium for
    a demonstration to increase access to dental care in La Crosse
    county;
          --$85,000 for the Tillamook County Health Department,
    Oregon, to expand primary and dental health services for
    underserved populations;
          --$850,000 for AIDS Alliance for Children, Youth, and
    Families;
          --$115,000 for the Anderson Valley Health Center, Inc.,
    Boonville, California, to expand dental and health care
    services;
          --$128,000 for the Partnership for the Children in San
    Luis Obispo County, California, for a low income dental clinic;
          --$170,000 for Northern Counties Health Care, Inc., St.
    Johnsbury, Vermont for a rural outreach initiative;
          --$213,000 for the Mercer County Health Department in
    Aledo, Illinois, to extend dental care services to rural
    underserved populations;
          --$300,000 for Blackstone Valley Community Health Care,
    Inc.;
          --$359,000 for outreach activities of the Blue Ridge
    Community Health Service;
          --$400,000 for the Kentucky Emergency Medical Services
    Academy;
          --$450,000 for CAP Services in Stevens Point, Wisconsin
    to extend dental health services to underserved populations;
          --$500,000 for St. Luke's Free Clinic in Hopkinsville,
    Kentucky;
          --$500,000 for the Texas A&M HERO program;
          --$500,000 for State and University of Alaska to train
    emergency medical personnel in rural areas;
          --$500,000 for Inland Health Northwest;
          --$425,000 for Campbellton-Graceville Hospital in
    Graceville, Florida, to expand clinical and preventive health
    care services to low income, rural populations;
          --$550,000 for Langlade Memorial Hospital, Antigo,
    Wisconsin, for a four county dental health initiative;
          --$700,000 for the Western Kentucky University mobile
    health screening program;
          --$1,311,000 for outreach activities of the Lourdes
    Health Network in Pasco, Washington;
          --$900,000 for Iowa Department of Public Health to
    develop and demonstrate the use of technology for public health
    nurses working in rural areas;
          --$921,000 to continue and expand the development of the
    Center for Acadiana Genetics and Hereditary Health Care at
    Louisiana State University Medical Center;
          --$800,000 for the University of Southern Mississippi
    Center for Sustainable Health Outreach;
          --$1,106,000 for Carondelet Health Network of Arizona to
    improve the health status of multi-cultural and medically
    disenfranchised populations through increased community health
    access and comprehensive continuum of care;
          --$1,200,000 for Southern Illinois University;
          --$1,318,000 for Voorhees College in Denmark, South
    Carolina for a Center of Excellence for rural health;
          --$1,800,000 for the University of Colorado School of
    Dentistry to conduct an oral health prevention and treatment
    program in Shannon, Jackson, Bennett, and Todd counties in
    South Dakota;
          --$1,900,000 for the Yukon-Kuskokwim Health Corporation's
    health care delivery system; and
          --$2,300,000 for the Mississippi State University Rural
    Health Safety and Security Institute.
          The conference agreement includes $13,439,000 for rural
    health research instead of $11,713,000 as proposed by the House
    and $5,000,000 as proposed by the Senate.
          The conferees include the following amounts for the
    following projects and activities in fiscal year 2001:
          --$143,000 for the University of Pittsburgh Center for
    Rural Health Practice;
          --$170,000 for Madison Community Health Center, Madison,
    Wisconsin, for a model preventive health program for hard to
    reach and at-risk populations;
          --$250,000 for the multiple sclerosis disease state
    management program at the University of Mississippi Center for
    Pharmaceutical Marketing;
          --$306,000 for the Texas Tech University Health Sciences
    Center at El Paso and the University of Texas at El Paso for
    joint research on health problems of migrant workers;
          --$400,000 for the McLaughlin Research Institute cancer
    education program;
          --$500,000 for the University of Alaska to develop a
    research and evaluation agenda for health care delivery;
          --$840,000 for the Marshfield Clinic in Marshfield,
    Wisconsin, for scientific, ethical and citizen advisory groups
    and education programs in connection with the development of a
    personalized medicine program;
          --$921,000 for the Virginia Center for Sustainable Health
    Outreach at James Madison University;
          --$921,000 for Atlantic City Medical Center for
    prevention services and medical education activities;
          --$1,275,000 for the University of North Dakota School of
    Medicine, Grand Forks, North Dakota for a rural health program
    in preventive medicine and behavioral sciences; and
          --$1,612,000 for the Carolina's Community Health
    Initiative for its community health assessment plan.
          The conferees encourage the National Human Genome
    Research Institute and the Agency for Healthcare Research and
    Quality to provide any necessary technical assistance to HRSA
    in supporting the Marshfield Clinic project.
          The conference agreement includes $35,981,000 for
    telehealth instead of $25,000,000 as proposed by the Senate.
    The House provided funding for this program within rural health
    research.
          The conferees include the following amounts for the
    following projects and activities in fiscal year 2001:
          --$14,000 for networking capabilities of the Cullman
    Area, Alabama, Mental Health Authority;
          --$43,000 for Arrowhead Regional Medical Center, Colton,
    California, for a telemedicine regional network;
          --$85,000 for the New York Primary Care Health
    Foundation, Inc., Flushing, New York, for a telehealth
    initiative;
          --$111,000 for Staten Island University Hospital to
    support a teleconferencing initiative to improve and strengthen
    linkages within campuses;
          --$184,000 for the Union Hospital Telehealth
    Demonstration project in Terre Haute, Indiana;
          --$300,000 for the University of Michigan Emergency
    Telemedicine Network;
          --$350,000 for Molokai General Hospital to use the latest
    technology advances to provide health care in rural areas;
          --$340,000 for Massachusetts College of Pharmacy and
    Health Sciences, Worcester, Massachusetts for a telehealth
    initiative;
          --$361,000 for the Center for Telehealth and Distance
    Education at the University of Texas Medical Branch, Galveston,
    Texas for a telehealth initiative;
          --$430,000 for Daemen College in Amherst, New York to
    continue a project to provide distance learning/medical
    linkages to rural counties in Western New York State;
          --$500,000 for a telehealth project at Magee-Women's
    Hospital;
          --$500,000 for the Susquehanna Health Systems
    telemedicine project;
          --$468,000 for the Southern Illinois University School of
    Medicine telemedicine and rural health initiative project;
          --$489,000 for the La Crosse Medical Health Science
    Consortium, Inc., Wisconsin for a telehealth initiative;
          --$750,000 for a joint New Mexico-Hawaii Telehealth
    Outreach for Unified Community Health;
          --$638,000 for Children's Hospital and Regional Medical
    Center in Seattle, Washington;
          --$737,000 for the Community Hospital Telehealth
    Consortium in Louisiana for continued development of a regional
    telehealth network;
          --$783,000 for the Memorial Telehealth Network in
    Springfield, Illinois;
          --$723,000 for Childrens Hospital Los Angeles,
    California, for a telemedicine initiative;
          --$737,000 for the Rural Telehealth and Community
    Education Network at Central Michigan University;
          --$900,000 for the Southwest Alabama Rural Telehealth
    Network at the University of South Alabama;
          --$850,000 for New York Presbyterian Hospital for a
    telehealth initiative;
          --$850,000 for the University of Pittsburgh Medical
    Center Information Technology project;
          --$1,000,000 for the University of Florida Human Brain
    Functional Imaging Technology project;
          --$800,000 for the University of Nebraska telemedicine
    outreach program;
          --$850,000 for the Fairview Lakes Regional Medical Center
    in Wyoming, Minnesota telemedicine project;
          --$1,020,000 for the Northern California Telemedicine
    Network, Santa Rosa Memorial Hospital, Santa Rosa, California;
          --$1,290,000 for a telemedicine program for downstate
    Illinois through the Southern Illinois University Medical
    School in Springfield, Illinois;
          --$1,335,000 for the University of Nevada Las Vegas
    Telemedicine Network;
          --$1,770,000 for the Idaho Telehealth Integrated Care
    Center to establish a comprehensive telehealth clinic to
    support care in rural and frontier areas;
          --$1,843,000 for the Telehealth Deployment Research
    Testbed program;
          --$1,800,000 for a project to link Rocky Mountain College
    and Deaconess Billings Clinic with telemedicine capabilities;
          --$1,700,000 for the Saint Vincent Hospital in Billings,
    Montana for its Telemedicine Model;
          --$2,418,000 for the Northeast Ohio Outreach Network to
    expand health services to rural residents in northeastern Ohio;
    and
          --$3,400,000 for the Alaska Federal Health Care Access
    Network.
          The conference agreement includes $19,000,000 for
    emergency medical services for children as proposed by the
    House instead of $15,000,000 as proposed by the Senate.
          The conference agreement includes $20,000,000 for poison
    control instead of $6,600,000 as proposed by the House and
    $26,000,000 as proposed by the Senate. Funds are provided to
    support activities authorized in the Poison Control Center
    Enhancement and Awareness Act.
          The conference agreement includes $6,000,000 for black
    lung clinics as proposed by the Senate instead of $5,943,000 as
    proposed by the House.
          The conference agreement includes $3,000,000 for trauma
    care as proposed by the Senate. The House bill contained no
    similar provision.
          The conference agreement includes a total of
    $1,807,700,000 for Ryan White programs instead of
    $1,725,000,000 as proposed by the House and $1,650,000,000 as
    proposed by the Senate. Included in this amount is $604,200,000
    for emergency assistance, $911,000,000 for comprehensive care,
    $185,900,000 for early intervention, $65,000,000 for pediatric
    HIV/AIDS, $10,000,000 for dental services, and $31,600,000 for
    education and training centers.
          The conference agreement includes bill language
    identifying $589,000,000 for the Ryan White Title II State AIDS
    drug assistance programs instead of $554,000,000 as proposed by
    the House and $538,000,000 as proposed by the Senate. The
    conferees concur with Senate report language regarding the
    Institute of Medicine study to evaluate the effectiveness of
    the current role and structure of the Ryan White CARE Act and
    the efforts to create a national consumer and provider
    education center within pediatric HIV/AIDS.
          The conference agreement includes $109,200,000 for Ryan
    White AIDS activities that are targeted to address the trend of
    the HIV/AIDS epidemic in communities of color, based on the
    most recent estimated living AIDS cases, HIV infections and
    AIDS mortality among ethnic and racial minorities as reported
    by the Centers for Disease Control and Prevention. These funds
    are allocated as follows:
          Within Ryan White Title I, the agreement provides
    $34,000,000 to the competitive supplemental allocation targeted
    to minority community based organizations, as defined by the
    Centers for Disease Control and Prevention, and directs that
    these funds be allocated through the established planning
    council processes of eligible metropolitan areas. These funds
    are designed to reduce the HIV related health disparities and
    improve the health outcomes for HIV infected African Americans,
    Latinos, Native Americans, Asian Americans, Native Hawaiians
    and Pacific Islanders. These funds are expected to expand
    medical and supportive service capacity in communities of
    color, and expand peer treatment education that is both
    culturally and linguistically appropriate to individuals living
    with HIV/AIDS.
          Within Ryan White Title II, the agreement provides
    $7,000,000 for State HIV care grants to support educational and
    outreach grants to minority community-based organizations to
    increase the number of minorities participating in the AIDS
    Drug Assistance Program (ADAP). The continuing under
    representation of African Americans, Latinos, Native Americans,
    Asian Americans, Native Hawaiians and Pacific Islanders in
    state run ADAP contributes to their persistently poor health
    outcomes in comparison to other communities.
          Within Ryan White Title III, the agreement provides
    $44,400,000 for planning grants, early intervention service
    (EIS) grants to minority community-based health care and
    service providers with a history of service provision to
    communities of color. Funds should also be made available to
    national, regional and local organizations representing people
    of color to provide technical assistance collaborations, and
    linkages designed to strengthen HIV/AIDS systems of care. Funds
    are intended to support the implementation of the plans
    developed by minority community based and health care
    organizations. The conferees expect that fiscal year 2001
    increases to Title III should be directed primarily towards
    providing early intervention service grants to those
    organizations that received Title III planning grants in the
    previous fiscal year and enhancing the service capacity of
    existing minority EIS providers.
          Within Ryan White Title IV, the agreement provides
    $15,700,000 to fund traditional minority community-based
    providers of services to minority children, youth and families
    to develop and implement culturally competent and
    linguistically appropriate research-based interventions that
    provide additional HIV/AIDS care, services and linkages. Funds
    are also intended to directly fund minority community based
    organizations and providers to expand or implement programs
    specifically designed to provide youth, adolescent, and young
    adult-focused HIV/AIDS care and services.
          The agreement provides $7,700,000 to AIDS education and
    training centers. These funds are intended to increase training
    of community-based minority health care professionals in AIDS-
    related treatments, standards of care, guidelines for the use
    of antiretroviral and other effective clinical interventions,
    and treatment adherence for HIV/AIDS infected adults,
    adolescents and children, as developed by the U.S. Public
    Health Service. The training of minority providers is to be
    implemented through collaborations with Historically Black
    Colleges and Universities (HBCU) and Hispanic Serving
    Institutions, and Tribal Colleges. These efforts are designed
    to increase the treatment expertise and HIV knowledge of
    minority front-line providers serving individuals living with
    HIV/AIDS. Funds are also intended to support minority community
    based organizations to train minority providers to deliver
    culturally competent and language appropriate treatment
    education services.
          The conferees intend that at least ninety percent of
    total title IV funding be provided to grantees. The conferees
    expect the agency to use the funding increases for title IV,
    with the exception of any increases provided through the CBC/
    Minority AIDS Initiative, to provide, at a minimum, additional
    funds to existing grantees to reflect the increases in the
    costs of providing comprehensive care. The agency should use a
    significant portion of the remaining funds to expand
    comprehensive services for youth, both through existing and new
    grantees. The conferees believe that the agency should expand
    efforts to facilitate ongoing communication with grantees so
    that prospective changes in the administration of the program
    can be discussed.
          From within the increase provided to pediatric AIDS
    demonstrations, the conferees encourage HRSA to target funds
    towards approved but unfunded applications from the previous
    fiscal year.
          The conference agreement includes $140,000,000 for health
    care access for the uninsured instead of $25,000,000 as
    proposed by the Senate. The House bill did not contain funding
    for this unauthorized program. Of this amount, $125,000,000 is
    included to provide grants to public, private, and non-profit
    health entities to develop and expand integrated systems of
    care and address service gaps within such integrated systems
    with a focus on primary care, mental health services and
    substance abuse services. The program will supplement existing
    categorical safety net programs to assist communities in better
    harnessing their current capabilities and resources. The
    national health care safety net is under enormous strain and
    the demand for this initiative large.
          The remaining $15,000,000 is to continue the initiative
    that was begun in fiscal year 2000 to help states identify the
    characteristics of the uninsured within the state and
    approaches for providing all uninsured with health coverage
    through an expanded state, Federal and private partnership.
    States have shown great interest in committing to the
    initiative and a second year of funding will produce a more
    comprehensive set of designs for providing insurance coverage
    for the uninsured. Sufficient funds are included to support up
    to ten new state grants, provide technical assistance to
    grantees and, if necessary, provide limited supplemental
    funding to states funded in fiscal year 2000 to complete their
    work. The Secretary is requested to submit a final report on
    state findings no later than December 1, 2001. The report
    should provide state by state summaries on baseline
    information, the process by which the state developed
    recommendations, including a description of data collection and
    partnerships, characteristics of the uninsured within the
    state, the proposed approaches for providing all uninsured with
    health coverage, and the estimated public and private cost of
    providing coverage. The report should also highlight and
    summarize common findings, policy development efforts and
    approaches identified by the states.
          The conference agreement includes $9,900,000 for an
    adoption awareness program as authorized in the Child Health
    Act of 2000.
          The conference agreement includes $10,000,000 for
    authorized health-related activities of the Denali Commission.
          The conference agreement includes $139,246,000 for
    program management instead of $128,123,000 as proposed by the
    House and $135,766,000 as proposed by the Senate.
          The conferees include the following amounts for the
    following projects and activities in fiscal year 2001:
          --$230,000 for the Illinois Poison Center;
          --$250,000 for the University of Alaska to establish an
    INPSYCH Center to train Alaska natives as psychologists to
    practice in Alaska villages;
          --$500,000 for the University of Alaska, Anchorage to
    recruit and train nurses;
          --$700,000 to support the efforts of the American
    Federation for Negro Affairs Education and Research Fund of
    Philadelphia;
          --$900,000 for Northeastern University in Boston,
    Massachusetts to train doctors to serve low-income communities;
    and
          --$900,000 for Des Moines University Osteopathic Medical
    Center for development of a model program for training and
    education in the field of geriatrics.
          The Child Health Act of 2000 authorizes oral health
    activities intended to improve the oral health of children
    under six years of age who are eligible for services provided
    under a Federal health program. These activities should
    increase the utilization of dental services by such children
    and decrease the incidence of early childhood and baby bottle
    tooth decay. The conferees are supportive of these efforts.

                   Centers for Disease Control and Prevention

                    Disease Control, Research, and Training

          The conference agreement includes $3,868,027,000 for
    disease control, research, and training instead of
    $3,386,369,000 as proposed by the House and $3,251,996,000 as
    proposed by the Senate.
          The conference agreement includes $175,000,000 for
    equipment, construction, and renovation of facilities as
    proposed by the Senate instead of $145,000,000 as proposed by
    the House. The conference agreement includes bill language to
    allow CDC to enter into a single contract or related contracts
    for the full scope of development and construction of
    facilities as proposed by the Senate. The House bill provided
    this authority only for laboratory building 18.
          The conference agreement includes a total of $97,354,000
    for the National Center for Health Statistics instead of
    $86,759,000 as proposed by the House and $105,110,000 as
    proposed by the Senate. The conference agreement also includes
    bill language designating $71,690,000 of the total to be
    available to the Center under the Public Health Service Act one
    percent evaluation set-aside as proposed by the House instead
    of $91,129,000 as proposed by the Senate.
          The conference agreement includes bill language to allow
    funds recouped from fiscal years 2000 and 2001 obligations for
    the influenza vaccine stockpile to be used in fiscal year 2001
    for childhood vaccine purchase.
          The conference agreement does not include language
    proposed by the Senate to allow funds made available for
    section 317A of the Public Health Service Act to be used at
    Early Head Start program sites. The House bill contained no
    similar provision.
          The conference agreement consolidates the salaries and
    expenses of CDC into a single account. Salaries and expenses
    activities encompass all non-extramural activities with the
    exception of program support services, centrally managed
    services, and buildings and facilities. The agency may allocate
    administrative funds for extramural program activities
    according to its judgment. Funds should be apportioned and
    allocated consistent with the table, and any changes in funding
    are subject to the normal notification procedures.
          The conference agreement includes $175,969,000 for the
    prevention health services block grant instead of $175,964,000
    as proposed by the House and $175,124,000 as proposed by the
    Senate. Within the total provided, $44,225,000 is for rape
    prevention and education activities previously funded through
    the Crime Trust Fund.
          The conference agreement includes $23,012,000 for
    prevention centers instead of $23,000,000 as proposed by the
    House and $14,080,000 as proposed by the Senate.
          The conferees include $700,000 for the Roger Williams
    Medical Center Healthlink program in Providence, Rhode Island
    to develop and implement a comprehensive health promotion
    initiative for senior retirees.
          The conference agreement includes $529,461,000 for
    childhood immunization instead of $472,966,000 as proposed by
    the House and $499,005,000 as proposed by the Senate. Included
    in this amount is an increase of $42,487,000 for operation/
    infrastructure activities, $5,000,000 for global polio
    eradication activities, and $20,000,000 for vaccine purchase.
    The conferees intend that funds available for vaccine purchase
    are for all currently licensed and recommended vaccines. In
    addition, the Vaccines for Children (VFC) program funded
    through the Medicaid program is expected to provide
    $469,054,000 in vaccine purchases and distribution support in
    fiscal year 2001, for a total program level of $1,016,528,000.
          The conferees recommend that CDC discontinue immunization
    incentive grants and that CDC award the $33,000,000 previously
    committed for this program as part of the entire operations
    funding to support State grantees cumulative core budgets.
    Incorporating incentive grants into States' base operations
    award would allow more States to receive a greater proportion
    of their core budget and help improve their overall
    immunization coverage levels. The conferees recommend that CDC
    use grant funding made available due to the completion of
    Congressionally-directed demonstration projects to ensure that
    all States receive at least the same level of operational
    funding received in fiscal year 2000, thereby holding them
    harmless during this funding shift from a formula based
    approach.
          Funding for measles vaccine for supplemental measles
    immunization campaigns and epidemiological, laboratory, and
    programmatic/operational support to the World Health
    Organziation and its member countries is included in measles
    eradication funding not polio eradication funding as identified
    in the Senate report.
          The conference agreement includes $767,246,000 for HIV/
    AIDS instead of $673,367,000 as proposed by the House and
    $640,000,000 as proposed by the Senate. Included in this amount
    is an additional $3,000,000 to maintain the current hematologic
    and blood safety program commitments and to expand support for
    the treatment centers network in carrying out initiatives to
    address the complications of hemophilia, including HIV/AIDS,
    blood safety surveillance and monitoring, and the needs of
    women with bleeding disorders.
          The conferees recognize the devastating impact of the
    global AIDS epidemic upon individuals, families and communities
    in Africa and Asia and have included $104,527,000 for global
    HIV/AIDS activities at CDC, which shall be available until
    September 30, 2002. This amount is an increase of $69,527,000
    over the fiscal year 2000 appropriation. With funding received
    in fiscal year 2000, CDC, in collaboration with USAID and other
    federal agencies, has begun to combat the AIDS epidemic in 14
    of the hardest hit countries in Africa and in India. The
    conferees urge CDC to continue to work in collaboration with
    USAID and other departments such as the Department of Defense
    and the Department of Labor, and other DHHS agencies especially
    HRSA, as well as international agencies, non-governmental
    organizations and country governments to halt the spread of the
    epidemic and lessen its impact. In those countries where CDC
    already has a presence, CDC, in collaboration with USAID and
    HRSA, should assist in implementing country-wide care and
    prevention programs. This will include partnering with HRSA to
    develop health care services focused on mobilizing communities
    for the development of palliative care, basic treatment, and
    support services. In addition, CDC should begin to assist other
    areas at high risk for severe epidemics including other African
    countries, Southeast Asia, and the Caribbean/Latin American
    region. Finally, CDC should support targeted anti-retroviral
    treatment demonstration projects in countries where sufficient
    care and treatment infrastructures exist. Within the total for
    international HIV/AIDS activities, the conferees provide
    $3,000,000 through CDC to support HRSA activities aimed at
    improving professional education and training relating to this
    initiative. The conferees have also included language to extend
    certain authorities of the Department of State to the Secretary
    of HHS so that CDC may use State's administrative systems for
    personnel, contracting and procurement, and for limited
    renovation or construction of essential program facilities.
          As a preventive vaccine offers the world's best hope for
    turning the tide against the global AIDS pandemic, and since
    international collaborations are essential for this goal, the
    conferees encourage CDC to work collaboratively with the
    International AIDS Vaccine Initiative and other global
    organizations to accelerate the development and testing of
    promising vaccine candidates.
          The conferees have provided additional funds to respond
    to the unmet needs identified through the community planning
    process. These funds are to augment the cooperative agreements
    between CDC and State and local health departments.
          The conferees recommend that CDC allocate an increase to
    evaluate HIV prevention service delivery programs to improve
    funding decision-making and to implement more rapid effective
    transfer of technology to community based service delivery
    organizations and health departments. Approximately half of
    this amount should support evaluation activities to track
    service delivery by community based organizations, and utilize
    cost-effectiveness analysis in HIV prevention. The remaining
    funds would be used to expand technology transfer regarding HIV
    prevention through activities such as regional technical
    assistance, technology transfer, and training for the purpose
    of providing links between evidence-based HIV prevention
    science and public health departments, community planning
    groups, healthcare providers, and prevention science providers.
          The conference agreement includes $88,000,000 to fund CDC
    activities that are designed to address the trend of the HIV/
    AIDS epidemic in communities of color, based on the most recent
    estimated living AIDS cases, HIV infections and AIDS mortality
    among ethnic and racial minorities as reported by the CDC. The
    program initiative includes funds for the ''Know Your Status''
    campaign. The conferees have included funds for the Directly
    Funded Minority Community Based Organization program to fund
    grant applications from minority organizations with a history
    of providing services to communities of color to develop and
    expand HIV prevention interventions and services targeted to
    highly impacted minority men, women, youth and sub-populations.
    Funds are also included to create grants under the CDC
    Community Development Program to support needs assessments and
    enhance community planning processes to integrate HIV, STD, TB,
    substance abuse prevention and treatment, care and community
    development within communities of color. Funds are to be
    allocated for technical assistance programs for grantees under
    the Directly Funded Minority CBO program, for Faith-Based
    Initiative Programs including community based organizations
    interested in developing coalitions and partnerships with faith
    based institutions. Funds are also provided for CDC's HIV
    surveillance activities to better track the epidemic and target
    resources. These funds are to be allocated based on program
    priorities identified in the previous fiscal year as well as
    new priorities.
          The conference agreement includes $126,528,000 for
    tuberculosis (TB) instead of $120,364,000 as proposed by the
    House and $113,413,000 as proposed by the Senate. The conferees
    intend that the increase over the President's request be used
    to reduce the number of foreign born TB cases contributing to
    the U.S. caseload, strengthen domestic TB control programs, and
    provide preventive therapy to individuals who have latent TB
    infection and are high-risk for developing active, infectious
    TB.
          The conferees include $184,000 for Onondaga County, New
    York Health Department to establish a prospective tuberculosis
    control program for Central New York industries.
          The conference agreement includes $148,256,000 for
    sexually transmitted diseases instead of $136,743,000 as
    proposed by the House and $135,978,000 as proposed by the
    Senate. The conferees provide $6,000,000 over fiscal year 2000
    funding for chlamydia and $14,934,000 over fiscal year 2000
    funding for syphilis. Except for the administrative
    contribution required by CDC, all of this increase for
    chlamydia must be spent on appropriate services to patients to
    prevent chlamydia infections using the existing partnership
    between STD and family planning. The conferees recognize that
    given the problem of re-infection and other factors, some of
    these funds may be utilized to provide screening and treatment
    to males as deemed appropriate by CDC.
          The conference agreement includes $417,039,000 for
    chronic and environmental diseases instead of $317,374,000 as
    proposed by the House and $319,553,000 as proposed by the
    Senate. Programs within this account are funded (including
    salaries and expenses) at the following levels:

    Environmental Disease Prevention:
        Arctic populations..................................        $390,000
        Asthma..............................................      27,906,362
        Autism..............................................       6,734,000
        Birth defects.......................................      17,608,000
        Disabilities prevention.............................      15,276,000
        Environmental lab and health activities.............      46,593,117
        Fetal alcohol syndrome..............................       9,551,843
        Folic Acid..........................................       2,500,000
        Hanford Study.......................................       1,679,000
        Limb Loss...........................................       3,352,000
        Mild mental retardation.............................       4,396,000
        Newborn Hearing Screening...........................       6,315,576
        Pfisteria...........................................       9,081,000
        Radiation...........................................       1,949,000
        Spina bifida........................................       2,155,000
        Volcanic emissions..................................          97,000
                        --------------------------------------------------------
                        ____________________________________________________
          Subtotal, Environmental...........................     155,583,898
    Chronic Disease Prevention & Health Promotion:
        Arthritis and healthy aging.........................      11,889,000
        Behavior risk factor surveillance...................       1,918,000
        Cancer registries...................................      36,434,297
        Cardiovascular diseases.............................      35,038,825
        Chronic fatigue syndrome............................       7,000,000
        Colorectal cancer...................................       8,901,345
        Community health promotion..........................       7,164,000
        Comprehensive cancer control........................       3,096,000
        Diabetes............................................      58,344,038
        Epilepsy............................................       4,074,255
        Iron overload.......................................         495,000
        Nutrition/Physical activity.........................      16,222,438
        Oral health.........................................       8,460,000
        Prevention of teen pregnancies......................      13,258,000
        Prostate cancer.....................................      11,173,000
        School health program...............................       9,775,000
        Skin cancer.........................................       1,647,000
        Tobacco (smoking and health)........................     103,355,034
        Women's health......................................       1,500,000
        Ovarian cancer......................................       2,625,870
                        --------------------------------------------------------
                        ____________________________________________________
          Subtotal, Chronic.................................     342,371,102
        Consolidated program administration.................     -80,916,000
                        --------------------------------------------------------
                        ____________________________________________________
          Total, Chronic & Environmental....................     417,039,000

          Within the total provided for arthritis, the conferees
    urge CDC to continue research, surveillance, and health
    communication efforts, including the impact of lupus on women,
    within the framework of the National Arthritis Action Plan.
          Within the total provided for cardiovascular diseases,
    the conferees expect CDC to enhance professional and public
    awareness outreach activities on pulmonary hypertension.
          Within the total provided for nutrition/physical
    activity, the conferees expect CDC to address overweight,
    obesity, nutrition, and sedentary lifestyles by supporting
    state-based programs, by training health professionals to
    recognize the signs of obesity and recommend prevention
    activities, by educating the public concerning overweight or
    obesity through public education campaigns, and by developing
    strategies for use at worksites and in community health and
    other community settings.
          Native American populations have a diabetes rate of four
    times the national average with Hispanics following a close
    second. The conferees urge CDC to fund pilot projects to
    examine nutrition and prevention protocols for these
    populations.
          The conferees look forward to the completion of the
    evidence-based report being developed by CDC and the Agency for
    Healthcare Research and Quality that will assess the elements
    of epilepsy treatment as they relate to clinical outcomes. CDC
    is expected to disseminate the findings of this report to
    people with epilepsy, health care professionals, and the
    general public. The Director should be prepared to provide the
    next steps required to implement an early intervention strategy
    including diagnosis, treatment, and referral recommendations at
    the fiscal year 2002 appropriations hearing.
          The conferees are encouraged that CDC plans to convene a
    meeting to develop a national prostate cancer public health
    agenda. The conferees urge the agency to continue its work with
    voluntary public and professional organizations to develop and
    implement a national educational and outreach campaign with
    special attention to minority and under served populations. CDC
    should be prepared to report on its prostate cancer programs at
    the fiscal year 2002 appropriations hearing.
          The conferees urge CDC to give full and fair
    consideration to a proposal to develop a diversified screening
    demonstration project with the Dean and Betty Gallo Prostate
    Cancer Center at the Cancer Center of New Jersey and the Men's
    Health Network designed to determine effective methods for
    encouraging men in the underserved population to participate in
    colorectal screening and screening for other high risk
    diseases.
          The conferees urge CDC to provide additional support for
    Johns Hopkins University to develop the Center for Limb Loss
    Research.
          The conferees include the following amounts for the
    following projects and activities in fiscal year 2001.
          Within the total provided for asthma, $213,000 is for the
    Buffalo General Foundation, Buffalo, New York, for a study
    examining the impact of air pollution on asthma rates and
    respiratory illness and $921,000 is for Forum Health of
    Youngstown, Ohio for a pediatric/adolescent asthma school
    program.
          Within the total provided for autism, $313,000 is for the
    Marshall University autism center in Huntington, West Virginia;
    $921,000 is for the New Jersey Epidemiologic Surveillance and
    Integration Center for Children with Autism; and $3,000,000 is
    for the Center of Excellence in Autism.
          Within the total provided for birth defects, $147,000 is
    for the Birth Defects Monitoring and Prevention Center at the
    University of South Alabama and $461,000 is for the University
    of Louisville Craniofacial Birth Defects Research Center.
          Within the total provided for cardiovascular diseases,
    $46,000 is for the Sisters of Charity Health Care System and
    Staten Island University Hospital's Heart Center; $500,000 for
    the Michael DeBakey Institute for Comparative Cardiovascular
    Science; $929,000 is for the Kettering Medical Center Healthy
    Hearts 2001 Initiative; and $4,500,000 is for The Paul
    Coverdell National Acute Stroke Registry to track and improve
    the delivery of care to patients with acute stroke. The
    conferees direct CDC to consult with the National Institute for
    Neurological Disorders and Stroke at the National Institutes of
    Health, the Brain Attack Coalition, and other professional
    organizations experienced in the treatment of stroke, in
    developing specific data points for collection as well as
    appropriate benchmarks for analyzing care. The conferees
    further direct CDC to include hospitals, universities, state
    and local health departments, and other appropriate partners to
    design and pilot test prototypes, that will measure the
    delivery of care to patients with acute stroke in order to
    provide real-time data and analysis to reduce death and
    disability from stroke and improve the quality of life for
    acute stroke survivors.
          Within the total provided for colorectal cancer, $184,000
    is for the Sisters of Charity Health Care System to ensure that
    patients have access to early detection of gastro-intestinal
    cancers.
          Within the total provided for community health promotion,
    $553,000 is for the Baltimore City Health Department, Maryland,
    to establish a Center for Chronic Diseases and $900,000 is for
    the University of Texas, Dallas, for the Southwestern Medical
    Center, National Multiple Sclerosis Training Center.
          Within the total provided for comprehensive cancer
    control, $425,000 is for Miami-Dade County, Florida for the
    Health Choice Network to administer the Jesse Trice Cancer
    Prevention Project; $921,000 is for an Appalachian cancer
    demonstration project at the East Tennessee State University
    James H. Quillen College of Medicine to address cancer care in
    the rural Appalachian region; $900,000 is for the University of
    Rhode Island Cancer Prevention Research Center to provide
    interactive interventions of at-risk populations; and $850,000
    is for the University of Texas M.D. Anderson Cancer Center in
    Houston, Texas, for a comprehensive cancer control program to
    address minority and medically undeserved populations.
          Within the total provided for diabetes, $230,000 for the
    Fresno Community Hospital and Medical Center to support a
    minority-focused diabetes outreach program; $213,000 is for the
    Diabetes-Endocrinology Center of Western New York in Buffalo
    for community education and outreach efforts to improve the
    early detection, prevention and control of diabetes; $276,000
    is for a comprehensive diabetic research, education and
    treatment program at Louisiana State Health Sciences Center in
    Shreveport; $425,000 is for the University of Puerto Rico to
    support surveillance, prevention research and education
    programs at the center for diabetes in Puerto Rico; $1,000,000
    is for the National Diabetes Prevention Center in Gallup, New
    Mexico to continue the prevention center for American Indians;
    and $1,843,000 is for the Center for Diabetes and Prevention
    Control at Texas Tech University Health Sciences Center to
    provide a national model of diabetes outreach, education,
    prevention and care.
          Within the total provided for disabilities prevention,
    $3,000,000 is to establish a paralysis information and support
    center with the Christopher Reeve Paralysis Foundation and to
    enhance efforts on the prevention of secondary complications to
    improve outcomes and the quality of life for people living with
    paralysis.
          Within the total provided for environmental health
    activities, $213,000 is for the San Antonio Metropolitan Health
    District to expand an assessment of human exposure to
    environmental contaminants near Kelly Air Force Base, Texas;
    $400,000 is for the establishment of a National Mass Fatalities
    Training Response Center, at Kirkwood Community College in
    Cedar Rapids, Iowa; $500,000 is for the State of Alaska's
    Department of Health and Social Services to study environmental
    contaminants; $850,000 for a joint United States/Vietnamese
    study on the effects of agent orange; $850,000 for the
    University of North Carolina at Chapel Hill to support
    additional research on animal modeling of chronic human
    diseases such as cancer, fibrosis, hypertension, and other
    diseases; and $1,800,000 for the Center for Environmental
    Medicine and Toxicology at the University of Mississippi
    Medical Center in Jackson, Mississippi.
          Within the total provided for nutrition/physical
    activity, $250,000 is for the National Youth Fitness and
    Obesity Institute at the University of Northern Iowa; $298,000
    is for the University of North Carolina at Greensboro, North
    Carolina, Institute for Health, Science and Society for the
    Children's Healthy Life Skills Initiative; and $461,000 is for
    the Grenada Lake Medical Center in Grenada, Mississippi to
    conduct a demonstration on physical fitness in rural areas.
          Within the total provided for school health program,
    $140,000 is for Proviso East High School in Maywood, Illinois
    in collaboration with Loyola University of Chicago and the Cook
    County Board of Health to improve the delivery of on-site
    primary care, preventive care, and health outreach to low-
    income parents and students in the community.
          Within the total provided for tobacco, $900,000 is for
    the University of Rhode Island Tobacco Cessation Program to
    compare media and policy interventions on smoking cessation and
    adoption of no smoking policies in the home.
          The conference agreement includes $173,928,000 for breast
    and cervical cancer screening instead of $160,941,000 as
    proposed by the House and $167,016,000 as proposed by the
    Senate. The conference agreement includes bill language to
    allow the agency to expand the WISEWOMAN program to not more
    than 15 States as proposed by the Senate. The House bill
    allowed the agency to expand the program to not more than 10
    States.
          The conferees urge the CDC to give full and fair
    consideration to proposals from Access Community Health Network
    in Chicago for delivering breast and cervical cancer screening
    and follow-up services to minority women.
          The conferees include the following amounts for the
    following projects and activities in fiscal year 2001:
          --$92,000 to evaluate the high incidence of breast cancer
    in DuPage County, Illinois;
          --$213,000 for Marin County, California to evaluate the
    high incidence of breast cancer in the San Francisco Bay Area;
          --$1,671,000 for the Healthcare Association of New York
    State for a breast cancer demonstration project to develop an
    integrated model for the delivery of comprehensive breast
    cancer services in a coordinated setting.
          The conference agreement includes $181,701,000 for
    infectious diseases instead of $111,622,000 as proposed by the
    House and $112,000,000 as proposed by the Senate. Within the
    total provided, $25,000,000 is for the establishment of
    partnerships between CDC and academic institutions and State
    and local public health departments to carry out pilot programs
    for antimicrobial resistance detection, surveillance, education
    and prevention, and to conduct research on resistance
    mechanisms and new or more effective antimicrobial compounds.
          The conferees commend CDC for its initiative to work with
    hospitals in identifying and responding to the risk of
    hospital-acquired infections and the emergence of antimicrobial
    resistance in the pediatric population, including its
    successful development of the largest hospital-based infection
    control network in the country. The conferees encourage CDC to
    continue its effort to work with pediatric hospital networks to
    improve infection control efforts for children, particularly
    high-risk children.
          Within the total provided, $25,000,000 is to continue
    planned activities and to expand efforts to control the West
    Nile virus, an increase of $20,000,000 above the President's
    request. The conferees direct CDC to ensure an equitable
    distribution of these funds based on the impact of the West
    Nile virus in particular states and localities during calendar
    year 2000. The criteria should include: the date of first
    positive findings, intensity of wildlife transmission,
    occurrence of human illness, geographic extent of positive
    findings, laboratory testing/activities, and employment of
    control measures, including spraying.
          Also within the total provided is $34,577,000 for NEDSS/
    EID and an increase of $4,000,000 for malaria programs.
          The conferees urge CDC to give full and fair
    consideration to a proposal by Advance Paradigm to demonstrate
    the role of provider utilization of information technology to
    improve patient safety through management of polypharmacy
    outcomes.
          The conferees include the following amounts for the
    following projects and activities in fiscal year 2001:
          --$149,000 for Case Western Reserve University,
    Cleveland, Ohio for prion disease surveillance;
          --$250,000 for the Institute for Clinical Evaluation for
    the reduction of medical errors through the development and
    demonstration of virtual reality medical technology simulation
    for training health care workers in medical procedures;
          --$300,000 for the Fletcher Allen Health Care,
    Burlington, Vermont for a demonstration to reduce medical
    errors;
          --$500,000 for the Iowa Department of Public Health for a
    demonstration to identify and develop strategies to reduce
    adverse medical events;
          --$961,000 for the University of Texas Medical Branch,
    Galveston, Texas, Tyler Border Infectious Disease Monitoring
    Program;
          --$921,000 for the Emerging Infectious Diseases Center at
    the University of New Mexico in Albuquerque to develop a
    network-based surveillance system; and
          --$1,843,000 to develop a comprehensive, statewide
    electronic public health reporting system in the State of
    Delaware.
          The conference agreement includes $34,933,000 for lead
    poisoning prevention instead of $31,019,000 as proposed by the
    House and $30,978,000 as proposed by the Senate. CDC is
    encouraged to work with Early Head Start in developing a
    strategy identify and target resources for childhood lead
    poisoning prevention to high-risk populations.
          The conference agreement includes $77,332,000 for injury
    control instead of $66,298,000 as proposed by the House and
    $69,000,000 as proposed by the Senate.
          The conferees have provided an additional $3,000,000 for
    CDC to strengthen its focus on violence by supporting
    initiatives directed at the prevention of physical and
    emotional injuries associated with child abuse and neglect. The
    conferees note that CDC convened a group of experts on child
    maltreatment to identify future directions for prevention.
    Increased funds are provided to begin to improve information on
    child maltreatment through mechanisms such as state-based
    surveillance, the development of uniform definitions, and
    survey information from victims and perpetrators. The conferees
    also support the evaluation and dissemination of effective
    interventions and urge CDC to develop and distribute an
    evaluation primer, a resource guide for evaluated child
    maltreatment interventions, and educational materials on child
    maltreatment prevention.
          The conferees include $2,000,000 to support a joint
    effort by CDC and the Consumer Product Safety Commission to
    identify products that contribute to common injuries. The
    conferees understand that this effort includes collecting
    information from hospitals that currently offer 24-hour trauma
    service. The conferees agree that any research and/or study
    undertaken shall address all products contributing to injuries
    found in these areas and that all existing restrictions on CDC
    funding and the Consumer Product Safety Commission apply to all
    aspects of this effort.
          CDC is urged to conduct evaluation research on
    sleepiness, sleep deprivation, and injury prevention associated
    with fatigue.
          The conferees concur with Senate report language
    regarding the development of population-based injury reporting
    systems and recognize the efforts of the University of
    Maryland, College Park.
          The conferees include the following amounts for the
    following projects and activities in fiscal year 2001:
          --$92,000 for the Rebuild program at Inova Fairfax
    Hospital that will enable trauma system doctors and nurses to
    work effectively with the families of trauma victims;
          --$200,000 for the National Children's Center of Rural
    Agricultural Health;
          --$250,000 for the American Trauma Society for a trauma
    information and exchange program;
          --$425,000 for the National SAFE KIDS Campaign,
    Washington, DC to improve child health through parental
    training and technical assistance in public housing sites and
    communities;
          --$750,000 for an Alaska Injury Prevention Center of
    which $250,000 is for collaboration with the State of Alaska
    Department of Health and Social Services and $500,000 is to
    develop a statewide childhood injury prevention program;
          --$850,000 for the Kennedy Krieger National Center for
    Research on Behavior of Children and Youth, Baltimore, Maryland
    for a youth violence prevention project; and
          --$921,000 for the Save A Life Foundation to expand the
    training of its basic life supporting first aid program.
          The conference agreement includes $119,375,000 for the
    national occupational safety and health program instead of
    $86,346,000 as proposed by the House and $105,000,000 as
    proposed by the Senate.
          The conferees provide an increase over the request of
    $10,000,000 for the National Occupational Research Agenda,
    $9,000,000 for respirator research and personal protective
    technology, and $1,000,000 for Education and Resource Centers.
          The conferees urge NIOSH to be supportive of developing a
    Pacific basin focus at the University of Hawaii at Hilo.
          The conferees include $723,000 for Purdue University in
    West Lafayette, Indiana, to support the Construction Safety
    Alliance for a national program in construction safety and
    health.
          The conference agreement includes $174,851,000 for
    epidemic services instead of $155,338,000 as proposed by the
    House and $30,254,000 as proposed by the Senate. Within the
    total provided, $125,000,000 is for a National Campaign to
    Change Children's Health Behaviors as described in the House
    report, including promoting mental health. The campaign is
    designed to clearly communicate messages that will help kids
    develop habits that foster good health over a lifetime. The
    conferees expect the goals of the campaign will also address
    the growing problem of obesity in this country. By displacing
    the opportunity for young people to make bad choices during
    after-school and weekend hours (such as being physically
    inactive) with opportunities to engage in positive goal-
    directed activities (such as sports and other physical
    activity) the campaign will reduce the proportion of children
    and adolescents who are overweight and obese.
          The conferees commend CDC's leadership role in landmine
    victim assistance programs and have provided an additional
    $5,000,000 to support expansion of the landmine survivor
    program as well as the partnership with the Landmine Survivors
    Network to further develop peer support networks that address
    the rehabilitative and socioeconomic needs of landmine victims
    in mine affected countries.
          The agreement includes $14,000,000 for the safe
    motherhood initiative. The conferees urge CDC to further its
    efforts to prevent deaths and complications during pregnancy
    and reduce racial disparities, with special focus on
    complications related to a lack of access to prenatal care and
    community support.
          The conferees include the following amounts for the
    following projects and activities in fiscal year 2001:
          --$9,000 for the Cross Road Foundation for a pilot
    project to sponsor singles mother self-help groups to improve
    parenting skills;
          --$37,000 for Victory Memorial Hospital in Brooklyn, New
    York to expand its prenatal program for uninsured, pregnant
    women;
          --$100,000 for the Northern New Jersey Maternal Child
    Health Consortium;
          --$184,000 for the Children's Hospital of Buffalo for
    activities related to intestinal motility disorders in infants;
          --$500,000 for the University Medical Center of Southern
    Nevada for Maternal and Neonatal Intensive Care;
          --$900,000 for Sudden Infant Death Syndrome Resources,
    Inc., Missouri Bootheel Healthy Start project;
          --$1,000,000 for the Prince George's County Health
    Department for Infant Mortality Prevention;
          --$1,020,000 for Jackson State University, Office of
    Research and Development to establish an epidemiological
    research institute;
          --$1,704,000 is for the University of Arizona, College of
    Public Health to continue comprehensive research and evaluation
    of the unique public health risks along the U.S.-Mexico border;
    and
          --$3,001,000 for the Lawton and Rhea Chiles Center for
    Healthy Mothers and Babies Friendly Access program to improve
    the quality of perinatal health service delivery.
          The conference agreement includes $13,593,000 for
    prevention research as proposed by the House instead of
    $13,386,000 as proposed by the Senate.
          The conference agreement includes $35,009,000 for health
    disparities demonstrations instead of $32,184,000 as proposed
    by the House and $27,000,000 as proposed by the Senate.
          The conference agreement includes $669,130,000 for
    program administration instead of $648,774,000 as proposed by
    the House and $626,228,000 as proposed by the Senate.
          The conferees do not include language proposed by the
    Senate to reduce administrative expenses of the CDC. The House
    bill contained no similar provision.

                         National Institutes of Health

                           National Cancer Institute

          The conference agreement includes $3,757,242,000 for the
    National Cancer Institute instead of $3,793,587,000 as proposed
    by the House and $3,804,084,000 as proposed by the Senate.
          NCI is encouraged to take appropriate steps to take full
    advantage of scientific opportunities that may be available
    from using genealogical databases to understand, diagnose,
    treat and prevent cancer and other diseases.

                    National Heart, Lung and Blood Institute

          The conference agreement includes $2,299,866,000 for the
    National Heart, Lung and Blood Institute instead of
    $2,321,320,000 as proposed by the House and $2,328,102,000 as
    proposed by the Senate.
          The conferees support research on the interaction of
    tuberculosis and AIDS conducted through the Institute's AIDS
    research program and encourage enhanced research in this area.
    The conferees also urge NHLBI to continue research and
    development efforts in the area of polynitroxylated hemoglobin,
    a blood cell substitute being developed to provide oxygen
    carrying capacity and adequate blood flow to the critically
    injured.

             National Institute of Dental and Craniofacial Research

          The conference agreement includes $306,448,000 for the
    National Institute of Dental and Craniofacial Research instead
    of $309,007,000 as proposed by the House and $309,923,000 as
    proposed by the Senate.
          The conferees are concerned about the exceptionally high
    rate of severe dental caries suffered by American Indian
    children and encourage NIDCR to support long-term research of
    the etiology and pathogenesis of dental caries in these
    populations. The conferees also encourage NIDCR to conduct
    research on effective ways to control severe caries in American
    Indian children through all available mechanisms, as
    appropriate, including clinical trials.

        national institute of diabetes and digestive and kidney diseases

          The conference agreement includes $1,303,385,000 for the
    National Institute of Diabetes and Digestive and Kidney
    Diseases instead of $1,315,530,000 as proposed by the House and
    $1,318,106,000 as proposed by the Senate.
          The conferees are concerned that the urology research
    effort is not addressing the large public health impact of
    urological diseases and conditions. NIDDK is strongly urged to
    enhance its research initiatives in urology.
          The conferees encourage NIDDK to coordinate with the
    Office of Dietary Supplements on their findings from the
    chromium and diabetes nutrition conference held in November of
    1999. The Institute is encouraged to enhance basic research
    grants to examine cellular glucose metabolism and the factors
    that influence that metabolism, especially the influence of
    chromium-containing compounds on glucose receptors.
          The conferees encourage NIDDK to expand research efforts
    for treatments for mucopolysaccharidosis (MPS). The conferees
    recognize the recent progress in some areas of MPS research,
    however the persistent challenges in development of effective
    treatments remain. NIDDK is encouraged to work with other
    Institutes, especially NINDS and NICHD, to research effective
    therapies.
          The conferees are concerned regarding reports that
    funding for two of the four recently established
    Interdisciplinary Research Centers have been significantly
    reduced. The conferees urge NIDDK, consistent with the PKD
    Strategic Plan, to fully fund the four Interdisciplinary
    Research Centers.
          The conferees are pleased with the growth of the NIDDK
    research portfolio on inflammatory bowel disease (IBD) and the
    focus on IBD in several of the Institute's digestive diseases
    centers. Moreover, several new initiatives are planned,
    including efforts to create an IBD genetics consortium in
    followup to a meeting NIDDK held in March 2000 on the genetics
    of IBD. The conferees are hopeful that IBD will be one of the
    diseases to be studied in the soon-to-be-established NIDDK
    digestive diseases trial network. The conferees urge the
    Institute to foster research on genetic, environmental and
    other factors that offer promise of shedding light on the
    underlying causes of immunologic abnormalities and inflammatory
    mechanisms in IBD, and that may help point the way to more
    effective therapeutic and preventive strategies.

            national institute of neurological disorders and stroke

          The conference agreement includes $1,176,482,000 for the
    National Institute of Neurological Disorders and Stroke instead
    of $1,185,767,000 as proposed by the House and $1,189,425,000
    as proposed by the Senate.
          The conferees are aware of the efforts of NINDS to
    identify the gene that causes Mucolipidosis Type IV (ML-4), a
    debilitating genetic metabolic disorder that prevents normal
    development in children. The conferees encourage NINDS to
    consider conducting workshops and expand research efforts in
    this area.
          The conferees urge NINDS to enhance research activities
    on the development or adaptation of electrical stimulation
    devices to activate the reflexes of the paralyzed muscles that
    open the airway during breathing in cases of paralyzed vocal
    cords due to trauma or neurodegenerative disease.
          The conferees encourage NINDS to continue their
    collaborative efforts with advocacy groups to develop
    treatments for Friedreich's ataxia.
          Recent advances in Spinal Muscular Atrophy (SMA) research
    have found that activation of the SMN2 gene may benefit
    treatment of SMA. The conferees urge NINDS to develop a SMA
    basic and clinical research portfolio through all available
    mechanisms, as appropriate, including clinical trials of drug
    compounds capable of activating SMN2 expression. The conferees
    also encourage the Institute to explore areas of promising
    research identified in the 2000 Families of SMA International
    Workshop.
          Mitochondrial disorders comprise a panoply of
    progressive, neurodegenerative syndromes affecting multiple
    organ systems and causing mild to severe disabling neurological
    complications. At present there is no cure or therapies that
    are effective. It is recognized that adult onset disorders such
    as Parkinson's, Alzheimer's, and Huntington's diseases may have
    an associated mitochondrial defect. The conferees urge NINDS
    and other relevant Institutes to explore the potential
    applicability of promising new therapies for these diseases in
    treating patients with mitochondrial disorders.
          The conferees are pleased to note that progress continues
    to be made both with respect to the treatment and in our
    understanding of the cause of multiple sclerosis. Recent
    studies have provided the best evidence to date that the
    disease is caused by over-reactivity of a person's own immune
    response. Based on these advances, the conferees encourage
    NINDS to expand its efforts to test new, innovative therapies.
    Research strategies should include the use of MRI and other
    surrogate biomarkers to help determine the stage of the
    disease, to evaluate effective treatments, and to improve
    diagnosis.

             National Institute of Allergy and Infectious Diseases

          The conference agreement includes $2,043,208,000 for the
    National Institute of Allergy and Infectious Diseases instead
    of $2,062,126,000 as proposed by the House and $2,066,526,000
    as proposed by the Senate.

                 National Institute of General Medical Sciences

          The conference agreement includes $1,535,823,000 for the
    National Institute of General Medical Sciences instead of
    $1,548,313,000 as proposed by the House and $1,554,176,000 as
    proposed by the Senate.

            National Institute of Child Health and Human Development

          The conference agreement includes $976,455,000 for the
    National Institute of Child Health and Human Development as
    proposed by the Senate instead of $984,300,000 as proposed by
    the House.
          The conferees are supportive of plans to conduct a
    national longitudinal study of environmental influences on
    children's health. The Director of NICHD is urged to establish
    a consortium of representatives from appropriate Federal
    agencies, including CDC, EPA and other NIH Institutes to plan
    and initiate pilot studies that will provide the information
    necessary to develop and implement the full national
    longitudinal study. To this end, the conferees have provided
    funds to support this initiative and look forward to learning
    of the progress made during the fiscal year 2002 appropriations
    hearing.

                             National Eye Institute

          The conference agreement includes $510,611,000 for the
    National Eye Institute instead of $514,673,000 as proposed by
    the House and $516,605,000 as proposed by the Senate.
          Recent progress in genetics research has opened up the
    potential for gene-based approaches for the prevention and
    treatment of retinal and other blinding diseases. Gene-based
    therapies for several forms of retinal degeneration have been
    successfully demonstrated in laboratory animal studies, and
    preclinical work has satisfied patient safety and ethical
    issues. The conferees urge NEI to accelerate the development of
    these new gene-based approaches through all available
    mechanisms, as appropriate, including clinical trials.

              National Institute of Environmental Health Sciences

          The conference agreement includes $502,549,000 for the
    National Institute of Environmental Health Sciences instead of
    $506,730,000 as proposed by the House and $508,263,000 as
    proposed by the Senate.
          The causes of breast cancer are largely unknown. There is
    little agreement in the scientific community on how the
    environment impacts breast cancer. While studies have been
    conducted on the links between environmental factors like diet,
    pesticides, and electromagnetic fields, no conclusive evidence
    exists. The conferees encourage NIEHS to enhance research
    efforts to study the links between the environment and breast
    cancer through all available mechanisms, as appropriate,
    including establishing centers of excellence.

                          National Institute on Aging

          The conference agreement includes $786,039,000 for the
    National Institute on Aging instead of $790,299,000 as proposed
    by the House and $794,625,000 as proposed by the Senate.

     National Institute of Arthritis and Musculoskeletal and Skin Diseases

          The conference agreement includes $396,687,000 for the
    National Institute of Arthritis and Musculoskeletal and Skin
    Diseases instead of $400,025,000 as proposed by the House and
    $401,161,000 as proposed by the Senate.
          Osteogenesis Imperfecta (OI), more commonly known as
    Children's Brittle Bone Disease, is a rare genetic disorder for
    which there is presently no cure. The conferees strongly
    encourage NIH to expand its support for research into the
    causes, diagnosis, treatment, prevention, and eventual cure for
    OI and to coordinate public research efforts with those
    supported by the private sector. The Director of NIAMS should
    be prepared to testify on this issue at the fiscal year 2002
    appropriations hearing.
          Important strides have been made with the establishment
    of the Osteoporosis and Related Bone-Disease National Resource
    Center. The conferees urge NIAMS to expand support for the
    resource center's current activities, including developing and
    disseminating information based on current research findings
    that improve knowledge and understanding of the prevention,
    diagnosis, and treatment of osteoporosis and related bone
    diseases, implementing and evaluating model education programs
    to enhance bone health and reduce future risk of osteoporosis,
    and supporting public and private efforts to broaden the base
    of knowledge about osteoporosis and related bone diseases.
          The conferees commend NIAMS for its growing support of
    research on rheumatic diseases of childhood, including the
    recent opening of a new Pediatric Rheumatology Clinic on the
    NIH campus. However, the conferees are concerned about the
    cadre of pediatric rheumatologists who are trained to treat and
    study these diseases. NIAMS is therefore encouraged to work
    with the Secretary of HHS and other PHS components, as
    appropriate, to assist in evaluating the status of the
    pediatric rheumatology workforce. In particular, the Institute
    is encouraged to take advantage of opportunities to support
    loan repayment for researchers working in the area of childhood
    rheumatic diseases.

        National Institute on Deafness and Other Communication Disorders

          The conference agreement includes $300,581,000 for the
    National Institute on Deafness and Other Communication
    Disorders as proposed by the Senate instead of $301,787,000 as
    proposed by the House.
          The conferees urge NIDCD to continue research on inner
    ear hair cell regeneration with special emphasis on gene
    delivery and gene transfer technology with specific relevance
    to the inner ear and the development of improved hearing aids
    and cochlear implants using digital processes. The conferees
    also urge NIDCD to continue to recruit experts from the field
    of molecular and cellular biology and genetics.

                     National Institute of Nursing Research

          The conference agreement includes $104,370,000 for the
    National Institute of Nursing Research instead of $102,312,000
    as proposed by the House and $106,848,000 as proposed by the
    Senate.

               National Institute on Alcohol Abuse and Alcoholism

          The conference agreement includes $340,678,000 for the
    National Institute on Alcohol Abuse and Alcoholism instead of
    $349,216,000 as proposed by the House and $336,848,000 as
    proposed by the Senate.

                        National Institute on Drug Abuse

          The conference agreement includes $781,327,000 for the
    National Institute on Drug Abuse instead of $788,201,000 as
    proposed by the House and $790,038,000 as proposed by the
    Senate.

                      National Institute of Mental Health

          The conference agreement includes $1,107,028,000 for the
    National Institute of Mental Health as proposed by the Senate
    instead of $1,114,638,000 as proposed by the House.

                    National Human Genome Research Institute

          The conference agreement includes $382,384,000 for the
    National Human Genome Research Institute instead of
    $386,410,000 as proposed by the House and $385,888,000 as
    proposed by the Senate.

                     National Center for Research Resources

          The conference agreement includes $817,475,000 for the
    National Center for Research Resources instead of $832,027,000
    as proposed by the House and $775,212,000 as proposed by the
    Senate. The conferees include a provision to waive the matching
    requirement for the grant or contract to manage the 288
    chimpanzees acquired by the Coulston Foundation. The House and
    Senate bills contained no similar provision.
          Within the total provided, $100,000,000 is for the
    Institutional Development Awards (IDeA) program as proposed by
    the House instead of $60,000,000 as proposed by the Senate. In
    the implementation of these funds, the conferees concur with
    the language contained in the House report. In addition, the
    conferees believe that the General Clinical Research Centers
    (GCRCs) are essential to furthering biomedical research
    progress and have included funds for NCRR above the
    Administration's request to permit an increase for GCRCs
    commensurate with the overall NIH funding increase.
          The conferees urge NCRR to use a portion of the increase
    provided for a new competition of Science Education Program
    Awards grants. The conferees further urge that these funds be
    used consistent with language contained in last year's House
    and Senate reports.

                      John E. Fogarty International Center

          The conference agreement includes $50,514,000 for the
    John E. Fogarty International Center instead of $50,299,000 as
    proposed by the House and $61,260,000 as proposed by the
    Senate.

                          National Library of Medicine

          The conference agreement includes $246,801,000 for the
    National Library of Medicine instead of $256,281,000 as
    proposed by the House and $256,953,000 as proposed by the
    Senate.

           National Center for Complementary and Alternative Medicine

          The conference agreement includes $89,211,000 for the
    National Center for Complementary and Alternative Medicine
    instead of $78,880,000 as proposed by the House and
    $100,089,000 as proposed by the Senate.
          The conferees are aware of the health benefits of
    cranberries and cranberry juice products in maintaining urinary
    tract health as well as their positive antibacterial and
    antioxidant effects and believe that independent Federally-
    funded research to test and/or validate these findings could
    add to the arsenal of health-based and nutritional alternatives
    to wellness. The conferees encourage NCCAM to study the health
    benefits of cranberry products.

           National Center on Minority Health and Health Disparities

          While the overall health of the nation has improved over
    the last two decades, there continues to be striking
    disparities in the burden of illness and death experienced by
    African Americans, Hispanics, Native Americans, Alaska Natives,
    and Asian-Pacific Islanders. Moreover, the largest numbers of
    medically underserved are white individuals, and many of them
    have the same health and access problems as do members of
    minority groups. Overcoming such persistent and perplexing
    health disparities, and promoting health for all Americans,
    ranks as one of our Nation's foremost challenges.
          These disparities are believed to be the result of the
    complex interaction among socioeconomic and biological factors,
    the environment, and specific behaviors, as well as other
    factors. While some of the causes of inequitable health
    outcomes may be beyond the scope of biomedical research, the
    conferees recognize that NIH has made research into health
    disparities a high priority, and has already taken steps to
    expand the role of research into why some minority groups have
    disproportionately high rates of disease.
          Congress recently passed and the President has signed the
    Minority Health and Health Disparities Research and Education
    Act of 2000. The Act established the National Center on
    Minority Health and Health Disparities, which will enable NIH
    to move ahead more rapidly toward its goal of elucidating the
    factors that contribute to these disparities. The Center will
    conduct and support research through grants to support programs
    targeting diseases and conditions that disproportionately
    affect minority groups and other populations with health
    disparities. The Center will build on the work of the Office
    for Research on Minority Health and the success of the Minority
    Health Initiative, currently located in the NIH Office of the
    Director. This will complement the ongoing research of the NIH
    Research Institutes and Centers also aimed at reducing health
    disparities. To emphasize the visibility of this new Center and
    the importance of its research mission, the conferees have
    included bill language providing $130,200,000 for the Center.

                             Office of the Director

                         (Including Transfer of Funds)

          The conference agreement includes $213,581,000 for the
    Office of the Director instead of $342,307,000 as proposed by
    the House and $352,165,000 as proposed by the Senate. The
    agreement includes a designation in bill language of
    $48,271,000 for the operations of the Office of AIDS Research.
    The conferees understand that with the funds allocated to NIH,
    the NIH expects to provide $2,266,987,000 in AIDS research
    funding.
          The agreement includes funds within the Office of the
    Director to address the trend of the HIV/AIDS epidemic in
    communities of color. The Office is encouraged to expand and
    strengthen science-based HIV prevention research for African
    Americans, Latinos, Native Americans, Asian Americans, Native
    Hawaiians and Pacific Islanders and consideration should be
    given to the U.S. Virgin Islands and Puerto Rico. The Office is
    also encouraged to expand existing culturally competent
    behavioral research, conducted by minority principal
    investigators, that seeks to break the link between HIV
    infection and high risk behaviors and that seeks to decrease
    the rate of mortality in targeted minority populations.
          The conferees continue to be interested in matching the
    increased needs of researchers who rely upon human tissue and
    organs to study human diseases and to search for cures. The
    conferees are aware of a recent review by a panel of experts
    that found that there is a rapidly expanding and unmet demand
    for the use of human tissue samples for research purposes. The
    conferees encourage the Director of NIH to work with the
    relevant Institutes to consider expanding support in this area
    and request that the Director be prepared to report on its plan
    to meet the demand for human tissue at the fiscal year 2002
    appropriations hearing.
          The conferees encourage NIH to consider establishing a
    trans-NIH coordinating committee to focus on the lymphatic
    system, with particular emphasis on lymphedema and related
    lymphatic disorders.
          The conferees are aware of concerns raised regarding the
    progress of NIH research into fascioscapulohumeral muscular
    dystrophy and fascioscapulohumeral disease and encourage NIH to
    expand research in this area.
          The conferees concur with the language contained in the
    Senate report regarding microbicides research.
          The conferees encourage NIA, NICHD, and NINDS to work
    collaboratively to enhance research into Hutchison-Gilford
    Progeria Syndrome, an illness that strikes children in their
    first year causing them to age rapidly and prematurely and for
    which the average life expectancy is 13 years.
          The NIH has developed a five-year Parkinson's Disease
    Research Agenda. To carry out the plan, the professional
    judgement budget estimates call for increases over existing
    Parkinson's research of $71,400,000 in year one (fiscal year
    2001). The conferees strongly urge the Director to work toward
    implementation of the research agenda and oversee coordination
    of all relevant Institutes, including NINDS, NIEHS, NIA, and
    others conducting Parkinson's research. The Director is
    requested to report by March 1, 2001 on the progress towards
    implementation of the research agenda and to submit updated
    professional judgement funding projections for subsequent
    years.
          The conferees concur with the language in the Senate
    report regarding a study of the structure of NIH and expect to
    receive a report and recommendations one year from the date of
    confirmation of the new NIH Director.
          The conferees have been made aware of the public interest
    in securing an appropriate return on the NIH investment in
    basic research. The conferees are also aware of the mounting
    concern over the cost to patients of therapeutic drugs. By July
    2001, based on a list of such therapeutic drugs which are FDA
    approved, have reached $500,000,000 per year in sales in the
    United States, and have received NIH funding, NIH will prepare
    a plan to ensure that taxpayers' interests are protected.
          The Office of Dietary Supplements is urged to research
    the relationship between chromium deficiencies and diabetes in
    Native Americans through all available mechanisms, as
    appropriate, including clinical trials.
          The number of Americans taking dietary supplements
    containing ephedra has risen dramatically. The conferees
    encourage the Office of Dietary Supplements to enhance clinical
    research on the safety and efficacy of these products.
          The conferees urge NIH to minimize the use of non-human
    animals in nicotine or tobacco experiments, and is encouraged
    to explore any non-human research methods that are currently
    available or under development that may be used as an
    alternative to using non-human animals.
          The conferees are concerned about the transfer of HIV
    prevention interventions that have proven to be effective to
    service programs supported by other federal agencies, such as
    CDC and HRSA. The Office of AIDS Research (OAR) should work
    with the ICs to increase NIH efforts in this area through the
    establishment of programs for regional technical assistance,
    technology transfer, and training for the purpose of providing
    links between evidence-based HIV prevention science and public
    health departments, community planning groups, healthcare
    providers, and prevention service providers.
          The conferees strongly urge NIH to implement an
    intensified research effort regarding autism consistent with
    the Children's Health Act of 2000. The Director of NIH should
    also provide a report to the House and Senate Appropriations
    Committees by March 1, 2001 regarding a plan for establishing
    the Centers of Excellence on Autism Program authorized in the
    Children's Health Act of 2000.
          The conferees commend the Office of AIDS Research for
    convening an external review of the Centers for AIDS Research
    Program and for the five year plan to increase the number of
    Centers. However, the conferees urge the NIH to consider ways
    in which the five year plan can be modified to balance the need
    to expand the number of Centers with the need to adequately
    support the leading AIDS research institutions with the core
    center mechanisms that they need to efficiently pursue AIDS
    research.
          The conferees encourage NIH to pursue recommendations
    from the Diabetes Research Working Group to address the
    specific needs of minority populations.
          The conferees are aware of the National Institute of
    Child Health and Human Development's (NICHD) efforts to
    establish a Perinatology Research Branch (PRB) to conduct
    research programs on pregnancy and perinatology in the greater
    metropolitan region of the District of Columbia. After several
    attempts, the conferees understand that NICHD now intends to
    hold a nationwide competition for a site for the PRB. The
    Director is requested to submit a written report by March 1,
    2001, explaining why the efforts to establish the PRB in the
    greater metropolitan region of the District of Columbia have
    to-date been unsuccessful. The District of Columbia has the
    highest rate of infant mortality in the United States, the
    highest rate of infants born with low birthweights, and the
    lowest percentage of mothers receiving early prenatal care.
    Therefore, the report should include possible alternative
    methods for conducting research programs on pregnancy and
    perinatology in the greater metropolitan region of the District
    of Columbia.
          The conferees believe it appropriate for NIH to recognize
    Paul Rogers' numerous contributions to the public health and
    medical research. Therefore, the conferees urge the Director to
    designate the plaza in front of the James Shannon building on
    the NIH campus as the Paul G. Rogers Plaza and to commemorate
    it in his honor.
          The conferees appreciate the efforts of the Director to
    ensure that NLM's future physical needs are met and encourage
    that sufficient funds be made available from within NLM funding
    to meet these needs.

                            Buildings and Facilities

          The conference agreement includes $153,790,000 for
    buildings and facilities instead of $178,700,000 as proposed by
    the House and $148,900,000 as proposed by the Senate.

           Substance Abuse and Mental Health Services Administration

                   Substance Abuse and Mental Health Services

          The conference agreement includes $2,958,001,000 for
    substance abuse and mental health services instead of
    $2,727,626,000 as proposed by the House and $2,730,757,000 as
    proposed by the Senate. Within the funds provided, the
    conferees intend that $15,000,000 is to carry out the fetal
    alcohol syndrome prevention and services program.
    Center for Mental Health Services
          The conference agreement includes $420,000,000 for the
    mental health block grant instead of $416,000,000 as proposed
    by the House and $366,000,000 as proposed by the Senate.
          The conference agreement includes $91,763,000 for
    children's mental health instead of $86,763,000 as proposed by
    both the House and Senate.
          The conference agreement includes $36,883,000 for grants
    to states for the homeless (PATH) as proposed by the Senate
    instead of $30,883,000 as proposed by the House.
          The conference agreement includes $30,000,000 for
    protection and advocacy instead of $24,903,000 as proposed by
    the House and $25,903,000 as proposed by the Senate. The
    conferees continue to be concerned about deaths and serious
    injuries due to the inappropriate use of seclusion and
    restraints in facilities that treat individuals with mental
    illnesses and have provided additional resources so that these
    deaths can be investigated and future incidences can be
    prevented.
          The conference agreement includes $203,674,000 for
    programs of regional and national significance instead of
    $132,749,000 as proposed by the House and $146,875,000 as
    proposed by the Senate.
          Within the total provided, $90,000,000 provided under
    section 581 of the Public Health Service Act is for the support
    and delivery of school-based and school-related mental health
    services for school-age youth. It is intended that the
    Department will continue to collaborate its efforts with the
    Department of Education to develop a coordinated approach. The
    conferees recognize it may be necessary for the agency to
    allocate additional resources to the Safe Schools/Healthy
    Students Action Center to expand its technical assistance to
    serve new grantees.
          Within the total provided, $3,000,000 is for suicide
    prevention hotlines. The conferees direct SAMHSA to undertake
    an evaluation of the effectiveness of these hotlines in
    preventing suicides.
          The conferees believe that SAMHSA is uniquely qualified
    to support a clearinghouse for youth suicide prevention,
    including a database and related files of reference materials
    and organizations. SAMHSA, through this clearinghouse, could
    provide training and technical assistance to States to
    implement the Surgeon General's recommendations for suicide
    prevention.
          Within the total provided, $10,000,000 is provided under
    section 582 of the Public Health Service Act to support up to
    22 grants to local mental health providers for the purposes of
    developing knowledge of best practices and providing mental
    health services to children and youth suffering from post
    traumatic stress disorder as a result of having witnessed or
    experienced a traumatic event. Grantees can include psychiatric
    hospitals, general hospitals, outpatient mental health clinics,
    and community and university-based mental health programs. With
    respect to grants for knowledge development, preference should
    be given to applicants with experience in the field of trauma
    related mental disorders in children and youth.
          Within the total provided, $2,000,000 is to support
    professional training in restraints and seclusion in
    residential and day treatment centers for children and youth.
    This training initiative will support grants to non-profit and
    public entities for the purpose of developing and demonstrating
    the effectiveness of a best-practices training model to avoid
    the inappropriate use of restraints and seclusion.
          The conferees are supportive of efforts to develop a
    model training demonstration project to help eliminate deaths
    and injuries that occur in mental health facilities due to the
    inappropriate use of seclusion and restraints. Such a model
    training program should emphasize conflict resolution and de-
    escalation.
          Within the total provided, an increase of $2,000,000 is
    to provide additional support for minority fellowships in
    mental health.
          Within the total provided, $7,000,000 is for the
    treatment of mental health disorders related to HIV disease
    including: dementia, clinical depression and the chronic,
    progressive neurological disabilities that often accompany HIV
    disease. These direct services grants provided to minority
    community-based providers that operate in traditional and non-
    traditional settings are designed to strengthen their capacity
    to provide HIV related mental health services.
          Funds are included to provide grants to local communities
    to improve mental health screening and referrals in non-mental
    health settings and continue support for jail diversion
    programs for non-violent mentally ill offenders.
          It is intended that funds used to make grants to States
    for the purpose of developing data infrastructure will be used
    for mental health only.
          The conferees include the following amounts for the
    following projects and activities in fiscal year 2001:
          --$83,000 for the Hope Center in Lexington, Kentucky;
          --$85,000 for Steinway Child and Family Services, Inc. in
    Queens, New York for HIV/AIDS prevention;
          --$100,000 for the American Trauma Society to support its
    Second Trauma Program which helps train trauma system health
    care professionals to assist individuals facing the shock of an
    unexpected death or critical injury to their family members;
          --$200,000 for the Concord-Assabet Family Services Center
    for a model transitional living program for troubled youth;
          --$325,000 for Preschool Anger Management, Family
    Communications;
          --$500,000 for the Life Quest Community Mental Health
    Center in Wasilla, Alaska;
          --$680,000 for Pacific Clinics in Arcadia, California, to
    support a school-based mental health demonstration program for
    Latina adolescents in partnership with community groups, mental
    health agencies, local governments and school systems in
    Southeast Los Angeles county;
          --$803,000 for the Bert Nash Community Mental Health
    Center in Lawrence, Kansas, to provide mental health services
    in schools and other settings to prevent juvenile crime and
    substance abuse among high-risk youth;
          --$800,000 for the Alaska Federation of Natives for
    innovative homeless mental health services in Alaska;
          --$850,000 for the Iowa State University Extension to
    develop a program which would provide outreach, training, and
    counseling services in rural areas;
          --$921,000 for the United Power for Action and Justice
    demonstration project in Chicagoland area to end the cycle of
    homelessness;
          --$921,000 for a mentally ill offender crime reduction
    demonstration in Ventura County, California to create the
    building blocks for a continuum of care for mentally ill
    offenders who enter the jail system in the county;
          --$850,000 for the University of Connecticut for an urban
    health initiative to improve mental health services to
    underserved high-risk individuals living in urban public
    housing;
          --$1,007,000 for the University of Florida National Rural
    Behavioral Health Center to train extension agents in crisis
    intervention and stress management to better equip them to deal
    with emotional and stress related problems;
          --$1,500,000 for the Ch'eghutsen program in interior
    Alaska; and
          --$1,300,000 for the Alaska Federation of Natives to use
    integrated community care to treat native Alaska children with
    mental health disorders.
    Center for Substance Abuse Treatment
          The conference agreement includes $1,665,000,000 for the
    substance abuse block grant instead of $1,631,000,000 as
    proposed by both the House and the Senate.
          The conference agreement includes $256,315,000 for
    programs of regional and national significance instead of
    $213,716,000 as proposed by the House and $249,566,000 as
    proposed by the Senate. Within the total provided, $10,000,000
    is to initiate grants to local non-profit and public entities
    for the purpose of developing and expanding substance abuse
    services for homeless persons.
          The agreement includes $53,000,000 designed to provide
    targeted service expansion and capacity building to minority,
    community-based substance abuse treatment programs with a
    history of providing services to communities of color severely
    impacted by substance abuse and HIV/AIDS. The correlation
    between addiction and HIV/AIDS is well documented. Injection
    drug use alone still accounts for more than 20 percent of the
    primary HIV infection risk for African American and Latino
    adults. These funds are to be allocated based on program
    priorities identified in the previous fiscal year and new
    priorities. Funds are also included to enhance state and county
    efforts to plan and develop integrated substance abuse and HIV/
    AIDS treatment and prevention services to communities of color.
          The conferees are supportive of the efforts of the
    Sunshine Shelter for abused and neglected children in Natchez,
    Mississippi in treating chemically dependent women and their
    children and note that additional resources would allow the
    Shelter to expand its outreach efforts.
          The conferees include the following amounts for the
    following projects and activities in fiscal year 2001:
          --$100,000 for the Vermont Department of Health Office of
    Alcohol and Drug Abuse Prevention to examine adolescent
    residential treatment programs;
          --$106,000 for Center Point, Inc., in Marin County,
    California, to continue support for substance abuse and related
    services for minority, homeless and other at risk populations;
          --$200,000 for Green Door in Washington, D.C. to treat
    minority consumers with substance abuse problems and mental
    health issues;
          --$250,000 for the Allegheny County Drug and Alcohol
    Rehabilitation Program;
          --$500,000 for the Cook Inlet Council on Alcohol and Drug
    Abuse Treatment;
          --$500,000 for the House of Mercy in Des Moines, Iowa to
    support treatment programs for pregnant and post-partum women;
          --$500,000 for the State of Wyoming to carry out an
    innovative substance abuse prevention and treatment program;
          --$425,000 for Humboldt County, California, to support
    residential substance abuse and related services for women who
    have children;
          --$608,000 for the Hope Center in Lexington, Kentucky;
          --$645,000 for the Grove Counseling Center in Winter
    Springs, Florida for a demonstration project of effective youth
    substance abuse treatment methods;
          --$750,000 for the Fairbanks LifeGivers Pregnant and
    Parenting Teens program;
          --$900,000 for the Alaska Federation of Natives to
    identify best substance abuse treatment practices;
          --$1,105,000 for the City of San Francisco's model
    ``Treatment on Demand'' program for the homeless; and
          --$2,210,000 for the Baltimore City Health Department to
    use innovative methods to enhance drug treatment services.
    Center for Substance Abuse Prevention
          The conference agreement includes $175,145,000 for
    programs of regional and national significance instead of
    $132,742,000 as proposed by the House and $127,824,000 as
    proposed by the Senate. Within the total provided, it is
    intended that high-risk youth grants will at least be
    maintained at last year's level.
          The agreement includes $32,100,000 for grants to minority
    community based organizations to implement programs that
    strengthen substance abuse prevention capacity in communities
    of color disproportionately impacted by the HIV/AIDS epidemic,
    based on the most recent estimated living AIDS cases, HIV
    infections and AIDS mortality among ethnic and racial
    minorities as reported by the CDC.
          The conferees include the following amounts for the
    following projects and activities in fiscal year 2001:
          --$85,000 for the City of Alexandria, Virginia, substance
    abuse prevention demonstration program for high-risk Latino
    youth;
          --$213,000 for the Rock Island County Council on
    Addiction in East Moline, Illinois, for a youth substance abuse
    prevention program; and
          --$500,000 for the Drug-free Families Initiative at the
    University of Missouri, St. Louis.
          The conferees have included sufficient funds to continue
    the pregnant and post-partum substance abuse prevention
    evaluations for both the Community Prevention Parnership of
    Berks County, Inc. and the Family Planning Council of
    Pennsylvania
    Program Management
          The conference agreement includes $79,221,000 for program
    management instead of $58,870,000 as proposed by the House and
    $59,943,000 as proposed by the Senate. Within the total
    provided, $12,000,000 is for the National Household Drug
    Survey.
          The conferees include $3,278,000 in fiscal year 2001 to
    continue testing the effectiveness of Community Assessment and
    Intervention Centers in providing integrated mental health and
    substance abuse services to troubled and at-risk children and
    youth, and their families in four Florida communities. Building
    upon successful juvenile programs, this effort responds
    directly to nationwide concerns about youth violence, substance
    abuse, declining levels of service availability and the
    inability of certain communities to respond to the needs of
    their youth in a coordinated manner. The total provided
    includes, $2,000,000 for mental health special projects of
    regional and national significance; $1,000,000 for substance
    abuse treatment special projects of regional and national
    significance; $500,000 for substance abuse prevention special
    projects of regional and national significance; and $200,000
    for program management.
          The agreement includes a general provision proposed by
    the Senate regarding the withholding of substance abuse funds.
    The House bill contained no similar provision. The Synar
    amendment was included as part of the SAMHSA reorganization
    bill in 1992. The amendment and its implementing regulation
    required States to reduce sales of tobacco to minors within a
    negotiated period of time and if a State fails to meet its
    goals, reduced its substance abuse prevention and treatment
    block grant funding by 40 percent. The conferees are extremely
    concerned that several States, after at least four years, are
    not in compliance with the law and continue to seek an
    exemption to the penalty requirement. It is the conferees
    intention that this will be the last year exemption language
    will be carried in an appropriations bill. SAMHSA is directed
    to notify States of this intention and work with the affected
    States to help them come into compliance.

                   Agency for Healthcare Research and Quality

                        Healthcare Research and Quality

          The conference agreement includes $104,963,000 in
    appropriated funds instead of $123,669,000 as proposed by the
    House. The Senate bill did not provide a direct appropriation
    for the agency, instead it proposed to fund the agency through
    the evaluation set-aside.
          The conference agreement designates $164,980,000 to be
    available to the agency under the Public Health Service Act one
    percent evaluation set-aside as proposed by the House instead
    of $269,943,000 as proposed by the Senate.
          The conferees are troubled by the recent Institute of
    Medicine study which found that as many as 98,000 deaths are
    caused by medical errors each year. The conferees have provided
    an additional $50,000,000 to the agency to determine ways to
    reduce medical errors. The conferees are supportive of a study
    to determine the impact of extended work hours for registered
    nurses on patient safety.
          The agreement includes $10,000,000 for research that
    investigates the relationship between the health care workplace
    and its impact on medical errors and the quality of care
    provided to patients. Efforts to restructure the health care
    workplace, often in response to pressures to reduce costs,
    suggest that work environment and processes have had an impact
    on health and quality of workers' lives as well as the patients
    for whom they care. As we have learned from the experience of
    the aviation industry, reducing errors and promoting safety are
    a result of improving workforce systems. Likewise, it is
    important that workforce considerations be integrated into
    efforts to reduce medical errors and promote patient safety.
    The conferees believe that better understanding of these
    workforce considerations will lead to improved workplace
    practices and better outcomes for patients.
          The conferees support the efforts of the Agency for
    Healthcare Research and Quality, the National Institute for
    Occupational Safety and Health, the Department of Labor, and
    other agencies to work jointly and coordinate their work to
    improve healthcare quality, patient safety, and worker safety
    in health care facilities, through such activities as the
    October 2000 jointly sponsored conference on ``Enhancing
    Working Conditions and Patient Safety: Best Practices.'' The
    conferees urge that such coordinated efforts be continued.
          The conferees strongly urge the agency to enhance its
    investigator-initiated research funding through all available
    mechanisms, as appropriate.

                      Health Care Financing Administration

                               Program Management

          The conference agreement includes $2,246,326,000 for
    program management instead of $1,866,302,000 as proposed by the
    House and $2,018,500,000 as proposed by the Senate. The House
    bill assumed that the Administration's user fee proposal would
    be enacted prior to conference. An additional appropriation of
    $680,000,000 has been provided for the Medicare Integrity
    Program through the Health Insurance Portability and
    Accountability Act of 1996.
          The conferees repeat language included in last year's
    bill related to administrative fees collected relative to
    Medicare overpayment recovery activities.

                    Research, Demonstration, and Evaluation

          The conference agreement includes $139,311,000 for
    research, demonstration, and evaluation instead of $55,000,000
    as proposed by the House and $65,000,000 as proposed by the
    Senate.
          The agreement includes $50,000,000 for Real Choice
    Systems Change Grants to states to fund initiatives that
    establish specific action steps and timetables to achieve
    enduring system improvements and to provide long term services
    and supports, including community-based attendant care, to
    eligible individuals in the most integrated setting
    appropriate. Grant applications should be developed jointly by
    the State and the Consumer Task Force. The Task Force should be
    composed of individuals with disabilities from diverse
    backgrounds, representatives from organizations that provide
    services to individuals with disabilities, consumers of long-
    term services and supports, and those who advocate on behalf of
    such individuals. Grant-funded activities should focus on areas
    of need as determined by the State and the Task Force such as
    needs assessment and data gathering, strategies to modify
    policies that unnecessarily bias provision of long term care
    services to institutional settings or to health care
    professionals, and training and technical assistance.
          The agreement includes bill language for the following
    projects and activities for fiscal year 2001:
          --$300,000 for the United States-Mexico Border Counties
    Coalition for a study to determine the unreimbursed costs
    incurred to treat undocumented aliens for medical emergencies
    in southwest border States, their border counties, and
    hospitals within the jurisdiction of these States and counties;
          --$255,000 for the LA Care Health Plan in Los Angeles,
    California for a demonstration program to improve clinical data
    coordination among Medicaid providers;
          --$350,000 for the Cook County, Illinois Bureau of Health
    for the Asthma Champion Initiative demonstration to reduce
    morbidity and mortality from asthma in high prevalence areas;
          --$500,000 to the University of Pittsburgh Medical Center
    and University of Pennsylvania for a study of the efficacy of
    surgical versus non-surgical management of abdominal aneurysms;
          --$691,000 for a Medicare demonstration project at Ohio
    State University to determine the benefits of compliance
    packaging;
          --$650,000 for the Vascular Surgery Outcomes Initiative
    at Dartmouth College;
          --$646,000 for Shelby County Regional Medical Center to
    establish a Master Patient Index to determine patient Medicaid/
    TennCare eligibility;
          --$855,000 for the Children's Hospice International
    demonstration program to provide a continuum of care for
    children with life-threatening conditions and their families;
          --$921,000 for Equip for Equality for a demonstration
    project to document the impact of an independent investigative
    unit that will examine deaths or other serious allegations of
    abuse or neglect of people with disabilities at facilities in
    Illinois;
          --$1,000,000 for the West Virginia University School of
    Medicine's Eye Center to test interventions and improve the
    quality of life for individuals with low vision;
          --$1,000,000 for Duke University Medical Center to
    demonstrate the potential savings in the Medicare program of a
    reimbursement system based on preventative care.
          --$1,000,000 for the Iowa Department of Public Health for
    the establishment and operation of a mercantile prescription
    drug purchasing cooperative or non-profit corporation
    demonstration;
          --$1,843,000 for the Buck's County Health Improvement
    Project in Pennsylvania;
          --$1,700,000 for the AIDS Healthcare Foundation in Los
    Angeles for a demonstration of residential and outpatient
    treatment facilities;
          --$2,800,000 for the Mind-Body Institute of Boston,
    Massachusetts to conduct a demonstration of a lifestyle
    modification program;
          --$2,800,000 for a joint project between the University
    of Pittsburgh, Case Western Reserve in Cleveland, Ohio, and Mt.
    Sinai Hospital in Miami, Florida, to use integrated nursing
    services and technology to implement daily monitoring of
    congestive heart failure patients in underserved populations in
    accordance with established clinical guidelines; and
          --$20,000,000 to continue demonstration projects on
    Medicaid coverage of community-based attendant care services
    for people with disabilities.
          HCFA is urged to conduct a demonstration project
    addressing the extraordinary adverse health status of native
    Hawaiians at the Waimanalo health center exploring the use of
    preventive and indigenous health care expertise.
          HCFA is urged to work with the United States Renal Data
    System (USRDS) to test potential savings to the Federal
    government and to the Medicare program by comparing actual
    Medicare/Medicaid spending for end stage renal disease (ESRD)
    patients currently on daily hemodialysis with actual Medicare/
    Medicaid spending for ESRD patients on other treatment
    modalities, such as peritoneal dialysis and in-center
    hemodialysis whose demographic and other characteristics match
    those of the daily hemodialysis patients in 9 to 12 existing
    programs in the U.S. Such a study should compare spending
    related to patient dialysis and training, medications, vascular
    access, ambulance transportation, physician and outpatient
    medical expenses not related to dialysis, hospitalizations, and
    other medical services, such as skilled nursing facilities or
    home health care and any other spending for which data is
    available to the USRDS.
          HCFA is encouraged to utilize edit check software
    programs to scrub electronic data files prior to processing by
    the respective State agency and/or fiscal intermediary. The
    identification of errors and omissions prior to submission can
    provide dramatic improvement in the financial condition of many
    providers who are experiencing large losses of revenue.
          The conferees are concerned that HCFA has not instituted
    a demonstration project to test the potential savings to the
    Federal government and to the Medicare program by comparing
    different products used for diabetic wound care treatment as
    referenced in last year's conference agreement. Such a
    demonstration should compare the aggregate costs of wound care
    treatment using different applications regimens. The conferees
    urge HCFA to proceed with this demonstration project utilizing
    existing research funds.
          The conferees are aware that the Health Passport pilot
    program is helping thousands of low-income families in Nevada,
    Wyoming and North Dakota and urges HCFA to give full and fair
    consideration to a proposal to continue the program.
          The conferees have become increasingly concerned that
    many people with the most severe disabilities often experience
    a lack of quality in community residential and treatment
    services that can result in dangerous or unhealthful
    conditions. The conferees believe that such services should be
    monitored by an entity that has the expertise and legal
    authority necessary to ensure the safety and general well-being
    of this population. Accordingly, the conferees urge HCFA to
    support the protection and advocacy system to demonstrate the
    efficacy of such community monitoring.
    Medicare Contractors
          The conference agreement includes $1,357,000,000 for
    Medicare contractors instead of $1,165,287,000 as proposed by
    the House and $1,244,000,000 as proposed by the Senate. Of this
    amount, $1,305,000,000 is to support Medicare claims processing
    contracts and $52,000,000 is for Medicare+Choice information
    campaign.
    State Survey and Certification
          The conference agreement includes $244,147,000 for State
    survey and certification instead of $171,147,000 as proposed by
    the House and $219,674,000 as proposed by the Senate.
          The agreement includes an increase of $10,000,000 over
    the President's request for nursing home oversight and quality
    of care services.
    Federal Administration
          The conference agreement includes $505,868,000 for
    Federal administration instead of $474,868,000 as proposed by
    the House and $489,826,000 as proposed by the Senate.
          The conferees urge HCFA to give careful consideration to
    concerns that substance abuse (alcohol and drug) treatment
    facilities may not have been intended to be considered
    institutions for mental diseases exclusion under Medicaid since
    these facilities were not common when the exclusion policy was
    implemented. The conferees are aware that restricting Medicaid
    medical assistance to residential substance abuse treatment
    facilities with 16 or fewer adult treatment beds places an
    undue burden on the publicly funded substance abuse treatment
    and prevention infrastructure.
          The conferees concur with Senate report language urging
    HCFA to act more expeditiously to approve new medical
    technologies, including PET scans, for Medicare patients so
    that seniors will have access to the latest life-saving
    technologies and treatments.
          The conferees understand that HCFA regulations require
    States to provide documentation and justification before making
    changes in Medicaid reimbursements. The conferees are concerned
    that several State Medicaid agencies are currently paying or
    proposing to pay chain-operated pharmacies lower reimbursement
    rates than other pharmacies for providing the same prescription
    products and related services without providing the required
    justification. The conferees expect HCFA to enforce current
    regulations when reviewing and approving State submissions. The
    conferees also believe that the implementation of a different
    system for Medicaid reimbursements of pharmaceuticals should be
    addressed by the authorizing committees of jurisdiction. The
    Administrator should be prepared to testify on the status of
    this issue at the fiscal year 2002 appropriations hearing.
          HCFA has proposed guidelines regarding the administrative
    claims process for schools requesting reimbursement for
    Medicaid related services. The conferees are concerned that
    these guidelines are being developed without adequate input
    from interested parties and will significantly alter the
    administrative claiming program making it more difficult for
    schools to provide services to poor and disabled children. HCFA
    is expected to consult with school practitioners and other
    groups to draft guidance for Medicaid allowable costs under the
    administrative claiming section of the School Based Services
    program. HCFA is also urged to process pending State
    applications and to continue to review reimbursement procedures
    until new guidelines are published. The Administrator should be
    prepared to testify on this issue at the fiscal year 2002
    appropriations hearing.

                    Administration for Children and Families

      payments to states for child support enforcement and family support
                                    programs

          The conference agreement includes $2,441,800,000 for
    payments to states for child support enforcement and family
    support programs instead of $2,473,800,000 as proposed by the
    House and $2,473,880,000 as proposed by the Senate. The
    conferees provide extended availability of funds as proposed by
    the Senate. The House bill proposed no extended availability.

                       low income home energy assistance

          The conference agreement includes an additional
    $300,000,000 in fiscal year 2001 funding for the Low Income
    Home Energy Assistance program. When combined with the
    $1,100,000,000 already appropriated for fiscal year 2001 and
    the $300,000,000 in emergency funding, a total of
    $1,700,000,000 is available to support this program in fiscal
    year 2001. The agreement includes up to $27,500,000 for the
    leveraging incentive fund within these totals.
          The conferees are aware that average home heating fuel
    prices have doubled in the past year, and in some areas are up
    five-fold, while at the same time many states are expected to
    experience extremely cold winter. The conferees are deeply
    concerned that this will force steep reductions in the relative
    percentage of home heating cost that LIHEAP provides to low-
    income households. The conferees have provided a $300,000,000
    increase in the regular appropriation for fiscal year 2001 to
    reduce the adverse impact of these fuel price spikes.
          The conference agreement does not include advance funding
    for fiscal year 2002 for LIHEAP as proposed by the Senate. The
    House bill proposed $1,100,000,000 for fiscal year 2002. The
    conferees are aware that advance funding for LIHEAP was
    authorized by Congress in 1990 to respond to the States' need
    to budget and plan their LIHEAP programs in advance of the
    fall/winter heating season. States are required by statute to
    hold public hearings in the spring and summer on their proposed
    LIHEAP programs to determine eligibility levels, establish the
    size of household benefits, and establish parameters of crisis
    programs. Consequently, States must be able to reliably predict
    the LIHEAP appropriation that normally becomes available at the
    very beginning of the heating season, but which is often
    delayed due to late enactment of appropriations bills. As noted
    in the Senate Report 101-421 accompanying the Human Services
    Reauthorization Act of 1990, ``Forward funding will allow
    states to identify clients, provide assistance, and put them on
    responsible budget payment-plans in the summer or fall to avoid
    the development of life-threatening situations.'' Although
    advance funding is not included in this bill, the conferees
    fully intend to provide at least $1,400,000,000 in regular
    LIHEAP appropriations and $300,000,000 in emergency funds in
    fiscal year 2002.

                         refugee and entrant assistance

          The conference agreement includes $433,109,000 for
    refugee and entrant assistance as proposed by the House instead
    of $425,586,000 as proposed by the Senate. Within this amount,
    for the Torture Victims Relief Act funds, the conferees provide
    $10,000,000 as proposed by the House instead of $7,265,000 as
    proposed by the Senate. Within this amount, the conferees
    provide funding to implement the Trafficking Victims Protection
    Act of 2000, which will support efforts to certify eligibility
    for benefits and services for trafficking victims.
          The agreement includes $20,000,000 from carryover funds
    that are to be used under social services to increase
    educational support to schools with a significant proportion of
    refugee children and for the development of alternative cash
    assistance programs that involve case management approaches to
    improve resettlement outcomes. Such support should include
    intensive English language training and cultural assimilation
    programs.
          The agreement also includes $26,000,000 for increased
    support to communities with large concentrations of refugees
    whose cultural differences make assimilation especially
    difficult justifying a more intense level and longer duration
    of Federal assistance.

       payments to states for the child care and development block grant

          The conference agreement includes an additional
    $817,328,000 for child care services, together with the
    $1,182,672,000 provided as an advance appropriation in last
    year's bill, raising the funding level for this program to
    $2,000,000,000 for fiscal year 2001. The agreement does not
    provide for an advance appropriation for fiscal year 2002 as
    proposed by the Senate; however, the conferees intend that
    funding for the child care block grant be at least that level
    in fiscal year 2002. The House bill proposed advance funding of
    $2,000,000,000 for fiscal year 2002.
          The agreement also includes language specifying that
    funds under the Child Care and Development Block Grant are to
    be used to supplement, not to supplant, state and local child
    care funds.
          The agreement also sets aside an additional $272,672,000
    from fiscal year 2001 to be reserved by the States for
    activities authorized under section 658G, of which $100,000,000
    shall be for activities that improve the quality of infant and
    toddler child care. The House bill set aside $172,672,000 for
    additional quality purposes in fiscal year 2002. The Senate
    bill set aside $222,672,000 for additional quality activities,
    of which $100,000,000 was to be used for infant and toddler
    care, in fiscal year 2001. The agreement also sets aside
    $10,000,000 to be used for child care research, demonstration
    and evaluation activities. Neither the House nor the Senate
    contained this provision. Within the funds provided for child
    care resources and referrals, the agreement also includes
    $1,000,000 for the Child-Care Aware toll-free hotline.

                          social services block grant

          The conference agreement includes $1,725,000,000 for the
    social services block grant instead of $1,700,000,000 as
    proposed by the House and $600,000,000 as proposed by the
    Senate. The conference agreement includes a provision which
    maintains the percentage of funds that a state may transfer
    between the Social Services Block Grant and the Temporary
    Assistance to Needy Families Programs at 10 percent.

                    children and families services programs

                            (including rescissions)

          The conference agreement includes $7,956,345,000 for
    children and families services programs instead of
    $7,231,253,000 as proposed by the House and $7,895,723,000 as
    proposed by the Senate. In addition, the agreement rescinds
    $21,000,000 from permanent appropriations as proposed by both
    the House and the Senate.
    Head Start
          The conference agreement includes $6,200,000,000 for Head
    Start instead of $5,667,000,000 as proposed by the House and
    $6,267,000,000 as proposed by the Senate. The agreement
    includes an advance appropriation of $1,400,000,000 for Head
    Start for fiscal year 2002 as proposed by both the House and
    the Senate.
          The conferees are concerned that while fifty percent of
    children eligible for the regular Head Start program receive
    services, only about ten percent of children of farmworkers are
    served by Migrant Head Start. Therefore, the conferees
    encourage the Secretary to increase funding for Migrant and
    Seasonal Head Start in proportion to the overall funding
    increase for Head Start. The conferees also urge the agency to
    ensure that all children participating in the Early Head Start
    program receive a blood lead screening test.
          The conferees urge the agency to provide funds to the
    Alaska Federation of Natives to train Head Start teachers in
    remote Alaska villages. The conferees also encourage the agency
    to provide funds to the University of Alaska to provide
    distance training for Head Start teachers through Associate
    Degree programs.
    Runaway Youth
          The conference agreement includes $69,155,000 for runaway
    youth as proposed by the Senate instead of $64,155,000 as
    proposed by the House. The agreement allocates funds for the
    runaway and homeless youth programs following the structure of
    P.L. 106-71, the Missing, Exploited, and Runaway Children
    Protection Act, which consolidates the programs into a single
    funding stream.
    Adoption Incentive
          The conference agreement includes $43,000,000 for the
    adoption incentive program as proposed by the House instead of
    $55,928,000 as proposed by the Senate. The agreement also
    includes language that will allow funds under this program to
    be carried over for use in paying prior year bonuses.
    Social Services and Income Maintenance Research
          The conference agreement includes $37,666,000 for social
    services and income maintenance research instead of $27,491,000
    as proposed by both the House and the Senate. Of this total,
    the conferees intend that $5,000,000 be transferred to the
    Census Bureau for continued data collection on the Survey of
    Income and Program Participation. The conferees also provide
    sufficient funding for the following:
              --$500,000 for the National Fatherhood Initiative;
              --$500,000 for the Institute for Responsible
            Fatherhood;
              --$1,000,000 for the State Information Technology
            Consortium;
              --$175,000 for the Nation Center for Appropriate
            Technology's information technology clearinghouse.
          The conferees also include $500,000 within Social
    Services and Income Maintenance Research to support adding
    LIHEAP related questions to the Residential Energy Consumption
    Survey (RECS) conducted by the Department of Energy and to the
    Census Bureau's March current population survey to assure that
    the low-income household component is included in the surveys,
    and the conferees urge the expansion of the RECS sample size to
    target LIHEAP recipients. The conferees have also included
    $2,500,000 for grants to qualified private, non-profit
    intermediaries to demonstrate the provision of technical
    assistance to child care providers to improve the quality and
    supply of child care facilities in low income communities and
    to document the changes.
    Community Services Block Grant
          The conference agreement includes $600,000,000 for the
    community services block grant instead of $550,000,000 as
    proposed by the Senate and $527,700,000 as proposed by the
    House. The conferees expect that all local entities that are in
    good standing in the community services block grant program
    shall receive an increase in funding for the next program year
    that is proportionate to the overall increase in the
    appropriation provided for the block grant.
          The agreement includes language proposed by the Senate
    that requires the Department to establish certain procedures
    regarding the disposition of intangible property in the
    community economic development program under the Community
    Services Block Grant Act. The House bill contained no similar
    provision. The conferees also set aside $5,500,000 within the
    community economic development program for the job creation
    demonstration authorized under the Family Support Act.
          Within the funds provided for child abuse prevention
    programs, the agreement includes the following items:
                $737,000--University of North Carolina, Greensboro,
            NC for Violence Abuse Prevention and Education for Deaf
            and Hard of Hearing Children and their Caretakers;
                $1,382,000--Public Children Services Association of
            Ohio, Columbus, OH for child abuse prevention
            activities;
                $46,000--New Directions Housing Corp., Louisville,
            KY for the Homeless Youth Development Program;
                $230,000--Neighbor to Family, Des Plaines, IL for
            foster care training program;
                $524,000--Robert A. Pascal Youth and Family
            Services Inc., Severna Park, Maryland for the Healthy
            Families program;
                $1,773,000--Foster Parents Association, Spokane, WA
            for the Foster Family Support System;
                $230,000--Dave Thomas Center for Adoption Law at
            Capital University Law School, Columbus OH for
            development of an adoption law online database;
                $75,000--Operation Breakthrough in Kansas City;
                $400,000--Parent-to-Parent of Winooski, Vermont;
                $200,000--Family Friends for respite services for
            families with disabled children;
                $900,000--Alaska Native Health Board Child abuse
            prevention program;
                $2,500,000--early childhood services--Alaska Seed
            program;
                $2,500,000--to continue the Healthy Families Home
            Visiting Program in Alaska;
                $550,000--Early Childhood Development Center at
            Texas Tech University;
                $900,000--Celeste Foundation for a pilot program to
            bring in-home professional services via video and audio
            to disruptive at-risk children in foster home
            placements;
                $600,000--Farm Resource Center in West Virginia to
            provide a mechanism of early intervention for rural
            families in crisis;
                $100,000--Phoenix House Domestic Violence Center in
            Council Bluffs, Iowa;
                $1,562,000--Indian Oaks Academy in Manteno, IL for
            a demonstration project serving children and
            adolescents who are victims of child abuse;
                $500,000--Strengthen Our Sisters in West Milford,
            New Jersey to expand services.
          Within the funds provided for developmental disabilities,
    special projects $200,000 is included for the Allegheny County
    Respite Care Coalition to provide respite services for parents
    with disabled children.
          Within the funds provided for Native American programs,
    the agreement includes the following:
                --$700,000 for the Cook Inlet Tribal Council;
                --$300,000 for Kawerak, Inc.
                --$500,000 for the Alaska Federation of Natives to
            coordinate social service resources in native villages;
                --$100,000 for the South Dakota Native American
            Community Board to establish a Dakota language
            preservation program.
          The conferees support the idea that a national adoption
    website could include all youngsters available for adoption and
    will increase the likelihood that children will find loving,
    stable homes. The conferees recognize that the National
    Adoption Center has been at the forefront of developing
    technology-based resources to facilitate adoptions and is
    uniquely situated to create a single, national adoption
    website. The conferees have included sufficient funds for the
    National Adoption Center to continue to develop and sustain a
    national adoption photo listing service on the Internet.

           payments to states for foster care and adoption assistance

          The conference agreement includes $4,863,100,000 for
    payments to states for foster care and adoption assistance as
    proposed by the House instead of $4,868,100,000 as proposed by
    the Senate.

                            Administration on Aging

                            aging services programs

          The conference agreement includes $1,103,135,000 for
    aging services programs instead of $925,805,000 as proposed by
    the House and $954,619,000 as proposed by the Senate.
          The conferees include $125,000,000 to provide critically
    needed services for family caregivers under title III E and
    title VI C of the Older Americans Act as amended. The conferees
    intend that $5,000,000 of these funds be dedicated for Native
    American caregivers. According to the Administration on Aging,
    over seven million Americans are providing care for disabled
    seniors in households across the nation. Funds will be provided
    to states to use their aging networks to provide quality
    respite care and other support services such as information on
    available resources; assistance with locating services; and
    caregiver training, counseling and support. Such services
    improve the caregiver's ability to provide care, help preserve
    the family unit, prevent abuse and neglect, and minimize out-
    of-home placements. Caregiver support services also delay
    nursing home stays among care recipients.
          The conferees intend that $5,000,000 be made available
    from preventive health services for activities regarding
    medication management, screening, and education to prevent
    incorrect medication and adverse drug reactions.
          The agreement includes the following amounts under aging
    research and training:
                $961,000--Texas Tech University Health Sciences
            Center, Lubbock, TX for the Institute for Healthy
            Aging;
                $691,000--Florida International University, Miami,
            FL, National Policy and Research Center on Nutrition
            and Aging for ``Nutrition 2030'' program;
                $2,000--Bay Ridge Center for Older Adults,
            Brooklyn, NY for a demonstration program;
                $3,000--Staten Island Community Services Friendship
            Clubs, Inc., Staten Island, NY for a demonstration
            program in senior centers;
                $921,000--Mecklenburg County Department of Social
            Services, Services for Adults Division in Charlotte, NC
            for Nutrition 2000 program;
                $461,000--Metropolitan Family Services, Chicago, IL
            for a community based caregiver training program;
                $369,000--Ocean County New Jersey, Office of Senior
            Services for a demonstration program;
                $369,000--Burlington County New Jersey, Office on
            Aging for a demonstration program;
                $184,000--Camden County New Jersey, Division of
            Senior Services for a demonstration program;
                $427,000--Florida Atlantic University, Boca Raton,
            FL for Anne and Louis Green Alzheimer's Care and
            Research Center;
                $886,000--St. Petersburg Junior College in FL for
            Services for Caregivers of Seniors program;
                $250,000--Access Community Health Network's Senior
            Outreach Program;
                $1,400,000--Deaconess-Billings Northwest Area
            Center for Studies on Aging;
                $100,000--An elderly meals demonstration program at
            Progresso Latino in Central Falls, Rhode Island;
                $100,000--The Senior Fitness and Wellness Program
            in East Providence;
                $100,000--Southwest General Health Center
            Gatekeeper Program;
                $100,000--An additional $100,000 for the National
            Asian Pacific Center on Aging;
                $344,000--Northwest Parkinson's Foundation;
                $400,000--Champlain Valley Area Agency on Aging
            mental health project;
                $500,000--Albert Einstein Life Center in
            Germantown;
                $3,685,000--Social research into Alzheimer's
            disease care options, best practices and other
            Alzheimer's research priorities as specified in the
            House report;
                $100,000--Champlain Senior Center for adult day
            programming and a technology initiative;
                $200,000--Brandeis University Center on Women and
            Aging to conduct research on caregiving, health and
            financial security among seniors;
                $64,000--LIFESPAN of Greater Rochester, Inc., New
            York, to enhance a life course planning initiative to
            help older adults make informed choices to prepare for
            retirement;
                $85,000--San Luis Obispo Medical Society in
            California for volunteers in health to support a
            demonstration program to provide prescription drugs for
            low income, uninsured seniors;
                $120,000--Marathon County, Wisconsin to continue an
            initiative to provide respite care services;
                $170,000--Walk the Walk, Inc, in Long Island City,
            New York for Mary's House, an elder abuse center in
            Glendale, New York;
                $425,000--St. Louis County, Missouri for a seniors
            job training demonstration program;
                $468,000--National Association of Home Builders,
            National Center for Seniors' Housing Research, for a
            project to improve safety and access for senior
            housing;
                $510,000--The University of Akron College of
            Nursing, Akron, Ohio, to develop best practices in
            gerontological training, research and instruction;
                $723,000--Ivy Tech State College in Sellersburg,
            Indiana, for a seniors technology learning program;
                $935,000--Landmark Medical Center in Woonsocket,
            Rhode Island to support the Positive Aging Project to
            develop and implement model family-centered approaches
            to address the needs of the elderly;
                $1,000,000--West Virginia University Center on
            Aging to conduct follow-up work to the Year 2000
            Conference on Rural Aging;
                $425,000--City of Compton, California for an
            elderly assistance demonstration program to support and
            evaluate a community approach to providing services to
            low income seniors;
                $900,000--Donald Reynolds Aging Center at the
            University of Arkansas Medical School.
          Within the funds provided for state and local
    innovations/projects of national significance, the conferees
    intend that funds be used for ongoing projects scheduled for
    refunding in fiscal year 2001.

                            Office of the Secretary

                        general departmental management

          The conference agreement includes $291,075,000 for
    general departmental management instead of $262,631,000 as
    proposed by the House and $260,117,000 as proposed by the
    Senate.
          Within the total provided, $50,000,000 is for minority
    HIV/AIDS activities that strengthen the medical treatment and
    HIV prevention capacity within communities of color
    disproportionately impacted by the HIV/AIDS epidemic, based on
    rates of new HIV infection and mortality from AIDS. These funds
    are available to entities that target a specific minority group
    or multi-ethnic minority populations that are heavily impacted
    by HIV/AIDS, and are to complement existing and planned HIV/
    AIDS activities in communities of color. The agreement also
    includes bill language that requires the Secretary to submit an
    operating plan prior to the obligation of these funds.
          Within the total provided, $2,000,000 is for the United
    States-Mexico Border Health Commission. The conferees request
    the Secretary to provide the House and Senate Committees on
    Appropriations with a complete history of the activities and
    expenses of the Commission. Also within the total provided,
    $400,000 is to continue the Surgeon General's violence
    initiative and $400,000 is for a study on the feasibility of
    tribe compacting for the operation of Departmental programs.
          The agreement provides $24,327,000 for the adolescent
    family life program as proposed by the House instead of
    $19,327,000 as proposed by the Senate. The agreement includes
    bill language earmarking $10,377,000 under the adolescent
    family life program for activities specified under section
    2003(b)(2) of the Public Health Service Act, of which
    $10,157,000 shall be for prevention grants under section
    510(b)(2) of Title V of the Social Security Act, without
    application of the limitation of section 2010(c) of Title XX of
    the Public Health Service Act. The conferees intend that this
    set-aside is only for continuation costs of ongoing projects.
          The agreement provides $49,019,000 for minority health
    instead of $38,638,000 as proposed by the House and $37,638,000
    as proposed by the Senate. Within this total, $9,700,000 is to
    address the capacity and infrastructure deficiencies within
    minority community based organizations in rural and
    historically underserved urban communities, of which $6,600,000
    is for the Technical Assistance/Capacity Development Grant
    Program to fund existing grants in rural and historically
    underserved urban communities hardest hit by HIV/AIDS; $500,000
    is for continuation funding to the Bi-Cultural and Bilingual
    Demonstration Program; and $2,600,000 is to support existing
    grants through the Minority Health Coalition program, designed
    to promote early intervention HIV care in minority communities
    and to improve the health outcomes of people of color living
    with HIV disease. Also included is an increase of $1,000,000
    for the Office of Minority Health's Center for Linguistics and
    Cultural Competence in Health Care.
          The agreement provides $17,270,000 for the office of
    women's health instead of $16,495,000 as proposed by the House
    and $16,895,000 as proposed by the Senate. The conferees urge
    the office to provide funds to the National Osteoporosis
    Foundation to support its complementary adolescent bone health
    initiative.
          The agreement provides $11,668,000 for the office of
    emergency preparedness instead of $9,668,000 as proposed by
    both the House and Senate.
          The conferees include the following amounts for the
    following projects and activities in fiscal year 2001:
                --$50,000 for public service announcements
            regarding abstinence education for the County of Bucks'
            Department of Health in Doylestown, Pennsylvania;
                --$298,000 in the Office of Minority Health for the
            University of Maryland, Baltimore, in partnership with
            the Community Lead Education and Reduction Corps to
            prevent lead poisoning among low income and minority
            children;
                --$375,000 in the Office of Women's Health for
            Spelman College's African-American Women's Health and
            Wellness Project;
                --$383,000 in the Office of Minority Health for the
            Trinity Health Systems, Detroit, Michigan, to provide
            health care and preventive health services for
            underserved minority populations and low income
            individuals;
                --$500,000 to fund, through a contract with the
            National Academy of Sciences, an evaluation on
            children's health. This evaluation should assess the
            adequacy of currently available methods for assessing
            risks to children, identify scientific uncertainties
            associated with these methods, and develop a
            prioritized research agenda to reduce such
            uncertainties and improve risk assessment for
            children's health and safety;
                --$500,000 for the Thomas Jefferson University
            Hospital (TJUH) in Philadelphia, Pennsylvania, to
            continue development of its Center for Integrative
            Medicine, a program combining conventional medical
            science with promising alternative therapies;
                --$461,000 for the Glaucoma Caucus Foundation to
            provide glaucoma screening and outreach activities;
                --$650,000 in the Office of Minority Health for the
            University of Pennsylvania School of Dentistry to
            develop a Minority Oral Health Outreach program;
                --$638,000 for ARCH National Resource Center on
            Respite and Crisis Services in Chapel Hill, North
            Carolina, to expand training, technical assistance,
            evaluation and networking expertise in respite care;
                --$750,000 for the Community Transportation
            Association of America to provide technical assistance;
                --$680,000 in the Office of Minority Health for the
            Donald R. Watkins Memorial Foundation in Houston,
            Texas, to enhance care for African Americans and low
            income individuals with HIV/AIDS by coordinating
            services and expanding outreach efforts;
                --$765,000 in the Office of Minority Health for the
            Alameda County Medical Center in California for an
            initiative to reduce health disparities among
            uninsured, minority populations;
                --$850,000 in the Office of Minority Health for the
            Henry Ford Health System in Detroit, Michigan, to
            address the burden of chronic disease among African
            Americans through a network of partnerships with
            community organizations;
                --$850,000 in the Office of Minority Health for the
            CORE Center at Cook County Hospital in Chicago,
            Illinois, for a Community and Minority Education and
            Training Initiative for HIV/AIDS;
                --$935,000 in the Office of Minority Health for the
            Sumter Family Health Care Center, Sumter, South
            Carolina to support an innovative service delivery
            effort to provide health care to individuals with
            disadvantaged backgrounds, including minority
            populations;
                --$1,105,000 in the Office of Minority Health for
            the San Francisco Department of Public Health to
            provide HIV care and related services with an emphasis
            on providing care for women and minorities;
                --$1,165,000 in the Office of Minority Health for
            the Fresno Community Hospital and Medical Center in
            California for diabetes care and outreach for Hispanic
            Americans and low-income individuals; and
                --$1,700,000 in the Office of Minority Health for
            the National Council of La Raza for minority health
            research and outreach.
                --$150,000 for the Briarpatch Transitional Living
            Program in Madison, Wisconsin, to provide housing and
            support services to homeless teens.
          It is understood that the screening of blood and blood
    products could be improved through the use of nucleic acid
    testing (NAT) to better detect known infectious diseases such
    as Human Immunodeficiency Virus (HIV-1) and Hepatitis C virus
    (HCV). The National Heart, Lung and Blood Institute in the
    National Institutes of Health has contracted with private
    companies to develop fully automated NAT tests for HIV-1 and
    HCV. In view of the NIH's financial commitment to NAT and the
    approval of NAT in other countries, the Public Health Service
    Blood Safety Committee, chaired by the Surgeon General/
    Assistant Secretary of Health, is urged to encourage the
    adoption of these screening tools for individual donor testing
    of blood and plasma.
          The conferees request that the Chief Financial Officer
    report to the House and Senate Committees on Appropriations on
    the status of the HHS financial audit. The conferees also
    request that the Chief Information Officer report to the House
    and Senate Committees on Appropriations on the status of the
    HHS computer security and related infrastructure protection.
    Both reports are to be presented to the Committees no later
    than March 1, 2001.
          The conferees are concerned about the global AIDS
    pandemic and are supportive of the Department's international
    AIDS and infectious diseases efforts, especially those of CDC
    and NIH. The Department should continue to identify
    opportunities for strengthened international collaboration with
    those countries heavily impacted by HIV/AIDS and other new and
    emerging infectious diseases, as well as those nations that are
    vulnerable to a rapid acceleration of new cases. The Department
    should also coordinate its efforts with those of the U.S.
    Agency for International Development (USAID) to ensure that HHS
    activities are consistent with the USAID country strategic
    plan, and with those of multilateral organizations such as the
    World Health Organization and the Joint United Nations
    Programme on AIDS.
          The conferees urge the Secretary to establish a program
    to provide information and education on autism to health
    professionals and the general public as authorized in the
    Children's Health Act of 2000.
          The conferees direct the Secretary of Health and Human
    Services, in consultation with the Director of NIH, to conduct
    a review of the eligibility of the Bermuda Biological Station
    for Research (BBSR) to receive F&A recovery on NIH-supported
    research. The conferees are aware that the National Science
    Foundation, the National Oceanic and Atmospheric
    Administration, the National Aeronautics and Space
    Administration, and the Office of Naval Research provide BBSR
    with direct and indirect costs of research in peer-reviewed,
    competitive awards. The conferees request that the Secretary
    report to the House and Senate Appropriations Committees on the
    status of this review.
          The conferees expect the Office of Population Statistics
    to better coordinate with the Health Resources and Services
    Administration regarding family planning activities.
          The conferees support the HHS agreement to provide the
    Interdepartmental Task Force on AIDS with administrative
    support funding totalling $250,000 from within funds available
    to the Department.
          The conferees request the Secretary to provide a report
    to the House and Senate Appropriations Committees by May 1,
    2001 on the Department's review and action steps taken in
    response to the Institute of Medicine's report, ``No Time to
    Lose: Getting More from HIV Prevention.'' This should include a
    review of current investments in HIV prevention as they relate
    to the issues raised by the Institute of Medicine.
          The conferees are aware that the Secretary is working to
    establish the Advisory Committee on Minority Health to assist
    the Secretary in improving the health of racial and ethnic
    minority groups, and encourage the Secretary to proceed
    expeditiously so that the Department's goals and program
    activities better reflect the health care needs of Hispanic
    Americans and other racial and ethnic minorities.
          The conferees are concerned about the current situation
    regarding the availability and uneven distribution of influenza
    vaccine for the nation at a critical time for our most
    vulnerable populations, especially the elderly, sick and very
    young. The conferees understand the Department's role in
    developing influenza vaccine each year for distribution by
    private industry and commend the Department for its efforts to
    communicate with the American public as this unfortunate
    situation developed. The Secretary, through the National
    Vaccine Program Office, is directed to prepare a report to the
    Committees on Appropriations of the House and Senate by June
    30, 2001 regarding its assessment of this year's distribution
    problems along with any recommendations for changes in the
    vaccine development and distribution process.
          The conferees understand that the incidence of
    unreimbursed health care provided to foreign nationals in U.S.
    hospital emergency rooms is a problem costing taxpayers
    millions of dollars per year. The conferees direct the
    Secretary to conduct a study regarding the extent of the
    problem, including U.S. hospitals' experiences in obtaining
    reimbursement from foreign insurers, the identity of foreign
    insurance companies who do not cooperate with or reimburse U.S.
    health care providers, the amount of unreimbursed services
    provided to foreign nationals, along with recommended
    solutions. This study shall be submitted to the Committees on
    Appropriations of the House and Senate no later than December
    31, 2001.

                          Office of Inspector General

          The conference agreement includes $33,849,000 for the
    Office of Inspector General as proposed by the Senate instead
    of $31,394,000 as proposed by the House. The conferees do not
    include language proposed by the House to limit the amount of
    funds available to the Inspector General in fiscal year 2001
    under the Health Insurance Portability and Accountability Act
    of 1996 (HIPAA) to not more than $130,000,000. The Senate bill
    contained no similar provision.
          The agreement includes language not proposed by the House
    or the Senate to allow funds to be used to provide protective
    services to the Secretary and investigate non-payment of child
    support cases for which non-payment is a Federal offense under
    18 U.S.C. 228.

                            Office for Civil Rights

          The conference agreement includes $24,742,000 for the
    Office for Civil Rights instead of $18,774,000 as proposed by
    the House and $23,242,000 as proposed by the Senate.

                                policy research

          The conference agreement includes $16,738,000 for policy
    research as proposed by both the House and the Senate.
          The conferees include $7,125,000 to continue the study of
    the outcomes of welfare reform and to assess the impacts of
    policy changes on the low-income population. The conferees
    recommend that this effort include the collection and use of
    state-specific surveys and state and federal administration
    data, including data which are newly becoming available from
    state surveys. These studies should focus on assessing the
    well-being of the low-income population, developing and
    reporting reliable state-by-state measures of family hardship
    and well-being and of the utilization of other support
    programs, and improving the capabilities and comparability of
    data collection efforts. These studies should continue to
    measure outcomes for a broad population of welfare recipients,
    former recipients, potential recipients, and other special
    populations affected by state TANF policies. The conferees
    further expect a report on these topics to be submitted to the
    House and Senate Appropriations Committees by May 1, 2001.

                Public Health and Social Services Emergency Fund

          The conference agreement includes $241,231,000 for the
    Public Health and Social Services Emergency Fund instead of
    $254,640,000 as proposed by the House and $214,600,000 as
    proposed by the Senate.
          The amount provided includes $181,131,000 for the Centers
    for Disease Control and Prevention for the following
    bioterrorism and related activities:
                --$2,000,000 to continue to discover, develop, and
            transition anti-infective agents to combat emerging
            diseases;
                --$18,040,000 for the second year of a
            collaborative research program on the anthrax vaccine;
                --$32,000,000 for a national health alert network;
            and
                --$129,950,000 for all other activities, except
            tobacco litigation. The conferees do not provide
            funding for this activity.
          Regarding the anthrax study, the conferees understand
    that clinical studies will be greatly facilitated by the
    establishment of the Vaccine Healthcare Center Network, with
    the first site at Walter Reed Army Medical Center. This Network
    will facilitate data collection, standardization of the anthrax
    immunization, training and general data collection for this
    project.
          The conferees recommend that CDC continue and expand the
    public health preparedness center program.
          The remaining $60,100,000 is for the Office of Emergency
    Preparedness for bioterrorism-related activities.
          Within the total provided for CDC, the conferees include
    the following amounts for the following projects and activities
    in fiscal year 2001:
                --$500,000 for the National Bioterrorism Civilian
            Medical Response Center at Drexel University;
                --$750,000 for the National Rapid Response
            Bioterrorism Defense Center at the University of Texas
            Medical Branch, Galveston;
                --$941,000 for the University of Findlay National
            Center for Terrorism Preparedness to train and prepare
            underserved populations and facilities to react to
            bioterrorism and related incidents;
                --$900,000 for the St. Louis University Center for
            Research and Education on Bioterrorism;
                --$1,000,000 for the West Virginia University
            Virtual Medical Campus, to conduct an assessment for
            Disaster Medical Assistance Teams, National Guard
            Civilian Support Teams and hospital emergency and
            administrative personnel for medical preparedness and
            readiness for Weapons of Mass Destruction or similar
            events. These funds can only be used for this purpose.
            A report is due to the Congress by June 30, 2001 on
            this initiative;
                --$900,000 for the Rhode Island Hospital disaster
            preparedness initiative;
                --$1,400,000 for the Charlotte Mecklenburg Advanced
            Local Emergency Response Team (ALERT) project in
            Charlotte, North Carolina;
                --$1,900,000 for the Public Health Service Moble
            Training Center at Fort McClellan, Alabama for
            bioterrorism training; and
                --$2,200,000 for the Washington Hospital Center,
            the University of Pennsylvania Department of Emergency
            Medicine, and the University of Tennessee ER One
            initiative.

                               GENERAL PROVISIONS

                           nih and samhsa salary cap

          The conference agreement includes a provision proposed by
    the House limiting the use of the National Institutes of Health
    and the Substance Abuse and Mental Health Services
    Administration funds to pay the salary of an individual,
    through a grant or other extramural mechanism, at a rate in
    excess of Level I of the Executive Schedule instead of Level II
    as proposed by the Senate.

                           one-percent evaluation tap

          The conference agreement includes a provision proposed by
    the House to allow for a one percent evaluation tap pursuant to
    section 241 of the Public Health Service Act. The Senate bill
    contained a provision to allow for an evaluation tap of not
    more than 1.6 percent.

                               transfer authority

          The conference agreement includes language to provide
    general transfer authority for the Department of Health and
    Human Services. This authority was first provided in fiscal
    year 1996 with the understanding that the flexibility it
    provides can only be carried out when proper financial
    management controls and systems are in place. However, CDC has
    provided Congress with inaccurate spending data on a number of
    programs. While it is recognized that CDC is working to rectify
    problems that have been identified, for fiscal year 2001 the
    conferees are requiring a letter of reprogramming to the House
    and Senate Appropriations Committees and a written response
    from the Committees before any transfer of funds can be made to
    CDC.
          The conferees reiterate that it is not the purpose of the
    transfer authority to provide funding for new policy proposals
    that can, and should, be included in subsequent budget
    proposals. Absent the need to respond to emergencies or
    unforeseen circumstances, this authority cannot be used simply
    to increase funding for programs, projects or activities
    because of disagreements over the funding level or the
    difficulty or inconvenience with operating levels set by the
    Congress.

           substance abuse and mental block grant formula allocation

          The conference agreement does not include a provision
    proposed by either the House or the Senate regarding the
    distribution of substance abuse and mental health block grant
    funding.

                                nih obligations

          The conference agreement does not include a provision
    proposed by the House to limit NIH obligations to the
    President's budget request. The Senate bill contained no
    similar provision.

                  extension of certain adjudication provisions

          The conference agreement includes a provision proposed by
    the Senate to extend the refugee status for persecuted
    religious groups. The House bill contained no similar
    provision.

               medicare competitive pricing demonstration project

          The conference agreement includes a provision proposed by
    the Senate to prohibit funding to implement or administer the
    Medicare Prepaid Competitive Pricing Demonstration Project in
    Arizona or in Kansas City, Missouri or in the Kansas City,
    Kansas area. The House bill contained no similar provision.

                      withholding of substance abuse funds

          The conference agreement includes a provision proposed by
    the Senate to prohibit the Secretary from withholding a State's
    substance abuse block grant funds if that State is not in
    compliance with the requirements of the Synar Amendment. The
    provision also prohibits the Secretary from withholding
    substance abuse funding from a territory that receives less
    than $1,000,000. The House bill contained no similar
    provisions.

               state children's health insurance program (schip)

          The conference agreement does not include a provision
    proposed by the Senate to shift unspent fiscal year 1998 SCHIP
    funds to fiscal year 2003. The House bill contained no similar
    provision.

          sense of the senate regarding needlestick injury prevention

          The conferees delete without prejudice a Sense of the
    Senate provision regarding needlestick injury prevention. The
    House bill contained no similar provision.

                    clearinghouse on safe needle technology

          The conference agreement does not include a provision
    proposed by the Senate to provide additional funds to the
    Centers for Disease Control and Prevention to establish a
    clearinghouse on safe needle technology offset by an across-
    the-board reduction to travel, consulting, and printing
    services of the Departments of Labor, Health and Human
    Services, and Education. The House bill contained no similar
    provision.

      reasonable rate of return on both intramural and extramural research

          The conference agreement does not include a provision
    proposed by the Senate to withhold funding if the Director of
    NIH did not provide a proposal to require a reasonable rate of
    return on both intramural and extramural research by March 31,
    2001. The House bill contained no similar provision.

        study on unreimbursed health care provided to foreign nationals

          The conference agreement does not include a provision
    proposed by the Senate to require the Secretary to conduct a
    study on the unreimbursed health care provided to foreign
    nationals. The House bill contained no similar provision.

            national institute of child health and human development

          The conference agreement includes a provision proposed by
    the Senate to amend the Public Health Service Act to revise the
    purpose of the Institute relating to gynecologic health. The
    House bill contained no similar provision.

             immunization infrastructure and operations activities

          The conference agreement does not include a provision
    proposed by the Senate to provide additional funds to the
    Centers for Disease Control and Prevention for State and local
    immunization infrastructure and operations activities offset by
    an across-the-board reduction to administrative and related
    expenses of the Departments of Labor, Health and Human
    Services, and Education. The House bill contained no similar
    provision.

                       animal care contract requirements

          The conference agreement includes a provision proposed by
    the Senate to require that the contractor hired for the care of
    the 288 chimpanzees acquired by NIH from the Coulston
    Foundation be accredited by the Association for the Assessment
    and Accreditation of Laboratory Animal Care International or
    has PHS assurance. The House bill contained no similar
    provision.

                     Poison Prevention and Control Centers

          The conference agreement does not include a provision
    proposed by the Senate to provide additional funds to the
    Health Resources and Services Administration to provide
    assistance for poison prevention and control activities offset
    by an across-the-board reduction to administrative and related
    expenses of the Departments of Labor, Health and Human
    Services, and Education. The House bill contained no similar
    provision.

        Sense of the Senate Regarding the Delivery of Emergency Medical
                                    Services

          The conferees delete without prejudice a Sense of the
    Senate provision regarding the delivery of emergency medical
    services. The House bill contained no similar provision.

      Sense of the Senate Regarding Impacts of the Balanced Budget Act of
                                      1997

          The conferees delete without prejudice a Sense of the
    Senate provision regarding impacts of The Balanced Budget Act
    of 1997. The House bill contained no similar provision.

                                     ARKids

          The conference agreement does not include a provision
    proposed by the House to prohibit the Health Care Financing
    Administration from revoking a waiver to the State of Arkansas
    that implements its own children's health insurance plan. The
    Senate bill contained no similar provision.

                              Abstinence Education

          The conference agreement includes language to prohibit
    the awarding of abstinence education grants authorized in the
    Emergency Supplemental Act, 2000 until March 1, 2001. The House
    and Senate bills contained no similar provision.

                      Physicians Comparability Allowances

          The conference agreement includes a provision not
    proposed by either the House or the Senate to extend the
    authority of physicians comparability allowances for five
    years.

                        Organ Procurement Organizations

          The conference agreement includes language to prohibit
    the termination of the Lifelink of Puerto Rico Organ
    Procurement Organization, the Northeast Organ Procurement
    Organization and Tissue Bank, and the Arkansas Regional Organ
    Recovery Agency from participation in the Medicare and Medicaid
    programs for one year from the date of enactment of this Act.
    The agreement further requires that future certification be
    determined based upon performance information from these
    individual Organ Procurement Organizations beginning on January
    1, 2000. The House and Senate bills contained no similar
    provision.

                          CDC International Authority

          The conference agreement includes a provision not
    proposed by either the House or the Senate to provide authority
    to support CDC carrying out international HIV/AIDS and other
    infectious and chronic disease activities abroad.
          Subsection (a)(1) is intended to allow CDC to meet
    relatively short-term requirements for technical, management,
    and administrative personnel needs abroad through the award of
    personal services contracts in situations where other options,
    such as use of existing staff or hiring of new staff, or award
    of a service contract, other than one for personal services,
    are ineffective and impractical. During FY 2001, the conferees
    expect HHS to work with the Office of Management and Budget and
    other relevant agencies and Congressional committees as
    appropriate to consider effective longer-term solutions for
    addressing these types of needs.
          Section (a)(2) is intended to ensure that the Department
    of State can provide necessary support services (including
    Administrative Support services agreements) to support CDC's
    international health programs, including the purchase of
    necessary laboratory equipment and the lease, repair and
    renovation of laboratory and other facilities.

                                    Bayview

          The conference agreement includes language to allow the
    Director of the National Institutes of Health to enter into and
    administer a long-term lease agreement for facilities at the
    Bayview Campus in Baltimore, Maryland.

                 Office for Human Research Protections Transfer

          The conference agreement includes a provision to transfer
    $5,800,000 from the National Institutes of Health to the Office
    of the Secretary, General Departmental Management to support
    the newly established Office for Human Research Protections.
    This transfer of funds implements the Secretary's decision to
    move the Office to the Department from NIH and that in the
    future the Department will request funding for the Office
    within the Office of the Secretary. The House and Senate bills
    contained no similar provision.

                        Clinical Research Loan Repayment

          The conference agreement includes a provision to allow
    extramural clinical researchers to be included in the clinical
    research loan repayment program for individuals from
    disadvantaged backgrounds. The House and Senate bills contained
    no similar provision.

                             Acting Director of NIH

          The conference agreement includes a provision to allow
    the current Acting Director of NIH to remain in that position
    until a new Director is confirmed by the Senate. The House and
    Senate bills contained no similar provision.

                     national neuroscience research center

          The conference agreement includes a provision to name the
    National Neuroscience Research Center at the National
    Institutes of Health the John Edward Porter Neuroscience
    Research Center.

                               Title II Citation

          The conference agreement includes a provision proposed by
    the House to cite title II as the ``Department of Health and
    Human Services Appropriations Act, 2001''. The Senate bill
    contained no similar provision.

                       TITLE III--DEPARTMENT OF EDUCATION

                                Education Reform

          The conference agreement includes $1,880,710,000 for
    Education Reform instead of $1,505,000,000 as proposed by the
    House and $1,434,500,000 as proposed by the Senate.
    Parental Assistance
          The conference agreement includes $38,000,000 for
    parental assistance instead of $40,000,000 as proposed by the
    Senate. The House did not propose funding for this program.
    Education Technology
          For education technology, the conference agreement
    includes $872,096,000 instead of $905,000,000 as proposed by
    the House and $794,500,000 as proposed by the Senate.
    Technology Literacy Challenge Fund
          For the Technology Literacy Challenge Fund, the
    conference agreement includes $400,000,000 instead of
    $425,000,000 as proposed by the Senate and $517,000,000 as
    proposed by the House.
    Technology Innovation Challenge Grants
          For the Technology Innovation Challenge Grants, the
    conference agreement includes $136,328,000 instead of
    $197,500,000 as proposed by the House and $100,000,000 as
    proposed by the Senate. Within the amounts provided for
    Technology Innovation Challenge Grants, the conference
    agreement includes $46,328,000 for the following:
                $921,000--to be divided equally among the Blount,
            Cherokee, Cullman, DeKalb, Etowah, Fayette, Franklin,
            Lamar, Lawrence, Marion, Marshall, Pickens, Walker and
            Winston County Boards of Education in Alabama for
            technology enhancements for schools;
                $369,000--Harford County Magnet School, Aberdeen,
            MD for technology enhancements;
                $92,000--Community School District 31, Staten
            Island, NY for school computer lab enhancements;
                $147,000--Community School District 20, Brooklyn,
            NY for school computer lab enhancements;
                $921,000--Rockford Public Schools- District 205,
            Rockford, IL for Digital Community Classroom project;
                $207,000--Grant Joint Union High School District,
            Sacramento, CA for technology enhancements;
                $44,000--Bibb County Board of Education, AL for
            technology enhancements;
                $44,000--Calhoun County Board of Education, AL for
            technology enhancements;
                $44,000--Chambers County Board of Education, AL for
            technology enhancements;
                $44,000--Chilton County Board of Education, AL for
            technology enhancements;
                $44,000--Clay County Board of Education, AL for
            technology enhancements;
                $44,000--Cleburne County Board of Education, AL for
            technology enhancements;
                $44,000--Coosa County Board of Education, AL for
            technology enhancements;
                $44,000--Lee County Board of Education, AL for
            technology enhancements;
                $44,000--Macon County Board of Education, AL for
            technology enhancements;
                $44,000--St. Clair County Board of Education, AL
            for technology enhancements;
                $44,000--Talladega County Board of Education, AL
            for technology enhancements;
                $44,000--Tallapoosa County Board of Education, AL
            for technology enhancements;
                $44,000--Randolph County Board of Education, AL for
            technology enhancements;
                $44,000--Russell County Board of Education, AL for
            technology enhancements;
                $44,000--Jacksonville City Board of Education, AL
            for technology enhancements;
                $44,000--Oxford City Board of Education, AL for
            technology enhancements;
                $44,000--Sylacauga City Board of Education, AL for
            technology enhancements;
                $44,000--Phenix City Board of Education, AL for
            technology enhancements;
                $44,000--Auburn City Board of Education, AL for
            technology enhancements;
                $44,000--Opelika City Board of Education, AL for
            technology enhancements;
                $44,000--Piedmont City Board of Education, AL for
            technology enhancements;
                $921,000--Corbin Technology and Training Center,
            Corbin KY;
                $921,000--Regional Technology and Training Center
            in West Liberty, KY;
                $415,000--Cherokee County, Murphy NC for computers;
                $46,000--Meredith-Dunn School, Louisville, KY for
            technology enhancements;
                $184,000--Crawford County Public Schools in Roberta
            GA for technology development and equipment;
                $35,000--Thomas Jefferson High School for Science
            and Technology, Alexandria, VA for technology
            enhancements;
                $921,000--California Institute of the Arts,
            Community Arts Partnership, Santa Clarita, CA for the
            Digital Arts Network Project;
                $184,000--Travis Unified School District,
            Fairfield, CA for a technology plan;
                $9,000,000--I CAN LEARN;
                $1,800,000--Beaufort County School District in
            South Carolina to continue implementing the Learning
            with Laptops initiative;
                $900,000--Metropolitan Regional and Technical
            Center in Providence, Rhode Island to provide training
            and support in computer technology through Project
            Family Net;
                $1,500,000--Tupelo Public School District in
            Tupelo, Mississippi to Model successful, replicable
            technology application and utilization;
                $2,000,000--South Carolina Educational TV in
            Columbia, South Carolina for its public-private
            partnership established to develop model communication
            tools that support the use of technology in improving
            students' reading and writing;
                $1,275,000--Washington State Educational Agency in
            Olympia, Washington for the Linking Educational
            Technology and Educational Reform (LINKS) project to
            provide electronic student learning and teacher
            training;
                $500,000--Discovery Center in Springfield,
            Missouri, in partnership with area schools, to enhance
            student access to and use of technology-based learning;
                $100,000--Montgomery Public School system in
            Montgomery, Alabama for technology upgrades at the
            Brewbaker Technology Magnet High School;
                $850,000--New Mexico State Department of Education
            for an online advanced placement course demonstration
            program;
                $450,000--Western Kentucky University to improve
            teacher preparation programs that help incorporate
            technology into the school curriculum;
                $680,000--Houston Independent School District in
            Houston, Texas to provide advanced telecommunications
            systems for schools in the district;
                $500,000--McDermitt Combined School in Nevada to
            improve student access to and understanding of
            computers;
                $55,000--Northwood School District in Minong,
            Wisconsin for distance education programs;
                $100,000--New Mexico State Department of Education
            for a virtual school designed to increase educational
            access for students;
                $850,000--Washington State Office of Public
            Instruction for online advanced placement course
            development and delivery;
                $1,800,000--Iowa Department of Education for online
            advance placement course development and delivery;
                $2,500,000--Wheeling Jesuit University NASA Center
            for Educational Technologies in West Virginia for
            technology training of math and science teachers;
                $65,000--Reid Elementary School District in
            Searchlight, Nevada for educational technology
            enhancements;
                $100,000--City of Philadelphia, Pennsylvania for
            technology training and access to the internet and
            other high-technology tools;
                $925,000--Marymount University in Virginia for an
            instructional technology program for teachers;
                $3,100,000--Rutgers, the State University of New
            Jersey, for the RUNet 2000 project;
                $2,200,000--South Dakota Board of Regents to
            support distance learning technology;
                $1,421,000--Future of the Piedmont Foundation,
            Regional Education Center, Danville, VA for technology
            enhancements;
                $170,000--Santa Barbara Industry Education Council
            and Santa Barbara County Education Office, California
            for a computers for families program;
                $250,000--Nicolet Distance Education Network in
            Rhinelander, Wisconsin, for a distance learning
            initiative;
                $417,000--Gadsden School District in Quincy,
            Florida for technology upgrades and equipment for a
            distance education initiative;
                $451,000--Woodburn School District, Woodburn,
            Oregon for technology equipment for a distance learning
            center;
                $489,000--Southwest Virginia Education and Training
            Network, Abington, Virginia, for technology upgrades;
                $561,000--Adelphi University, New York, for the
            Information Commons distance education initiative;
                $638,000--Liberty Science Center, Jersey City, New
            Jersey, for technology upgrades for its partnership
            program with 28 school districts in New Jersey;
                $723,000--Maine School Administrative District
            Number 64, East Corinth, Maine, for the STAR technology
            teacher training project;
                $723,000--The Appalachian Center for Economic
            Networks, Athens, Ohio, to expand a computer
            entrepreneurship project;
                $808,000--Detroit Educational Television
            Foundation, Detroit, Michigan, to deliver expanded arts
            educational programs to schools through the Enrichment
            Channel;
                $1,169,000--Puget Sound Center for Teaching,
            Learning, and Technology, Seattle, Washington, for
            technology training, equipment and support; and
                $100,000--Rose Tree Media School District in
            Pennsylvania for integrating distance learning in the
            classroom through the HUBS project.
    National Activities
          The conference agreement includes $191,950,000 for
    education technology initiatives funded under National
    Activities. This includes $125,000,000 for teacher training in
    technology, the same amount as proposed by the Senate instead
    of $85,000,000 as proposed by the House. It also includes
    $64,950,000 to establish computer learning centers in low-
    income communities instead of $32,500,000 as proposed by the
    House and $65,000,000 as proposed by the Senate.
    Star Schools
          For Star Schools, the conference agreement includes
    $59,318,000 instead of $45,000,000 as proposed by the House and
    $43,000,000 as proposed by the Senate. Within the amounts
    provided for Star Schools, the conference agreement includes
    $8,768,000 for the following:
                $478,000--Winston-Salem/Forsyth County Schools,
            Winston-Salem, NC for Winston-Net program;
                $1,290,000--Galena School District, Galena Alaska
            for a distance education program;
                $4,000,000--Iowa Communications Network statewide
            fiber optic demonstration program; and
                $3,000,000--South Dakota Department of Education
            and Cultural Affairs to continue and expand the Digital
            Dakota Network which provides high speed Internet and
            local and wide area networking to all public K-12
            schools in South Dakota.
    Telecommunications demonstration project for mathematics
          The conference agreement includes $8,500,000 for
    telecommunications demonstration project for mathematics as
    proposed by the Senate. The House proposed no funds. The
    conferees recognize the positive work that the Public
    Broadcasting Service (PBS) has done in demonstrating and
    evaluating the use of different technologies to provide
    professional development opportunities in mathematics to
    elementary and secondary school teachers. While the Mathline
    program clearly has reached many teachers through various
    media, the conferees want to ensure that the greatest number of
    educators and students will benefit from this program. The
    conferees encourage PBS to continue to explore cost effective
    options for providing high quality professional development
    opportunities in core curricula to current and future teachers.
    In addition, the conferees encourage PBS to continue evaluating
    this program to measure the change in student academic
    achievement that results from teaching techniques learned
    through this program.
    21st Century Learning Centers
          The conference agreement includes $845,614,000 for the
    21st Century Learning Centers instead of $600,000,000 as
    proposed by both the House and the Senate. Within the amounts
    provided for 21st Century Learning Centers, the conference
    agreement includes $20,614,000 for the following:
                $9,000--Thirteenth Place Youth and Family Services
            in Gadsen Alabama for ``The After School Program'';
                $921,000--The Community House Inc. in Hinsdale, IL
            for youth programs and services;
                $230,000--Boys and Girls Club of Coachella Valley
            in Palm Desert, CA for after school programs;
                $553,000--Boys and Girls Club of Danville, Danville
            IL for youth programs;
                $461,000--Fayette and Clark Counties, Kentucky for
            after school programs;
                $69,000--Chrysalis House Inc. in Lexington, KY for
            equipment related to afterschool programs;
                $18,000--Goodhue Center, Staten Island, NY for an
            educational and technology enrichment project;
                $18,000--Central Family Life Center Inc. in Staten
            Island NY for after school family preservation program
            for tutoring and after school;
                $23,000--Jewish Community Center of Staten Island,
            NY for an after school program;
                $41,000--Catholic Youth Organization Inc., Staten
            Island NY for an after school program;
                $92,000--Boys and Girls Club of Rochester, MN for
            Project Learn;
                $23,000--Children's Museum of Elizabethtown, KY for
            after school programming;
                $921,000--Boys and Girls Clubs of Santa Clarita
            Valley, Santa Clarita, CA for youth development
            programs;
                $9,000--First Gethsemane Center for Family
            Development, Louisville, KY for tutoring program;
                $18,000--Summerbridge, Louisville, KY for tutoring
            program;
                $14,000--New Creations Development Programs, Inc.,
            Louisville, KY for tutoring/mentoring program;
                $18,000--New Zion Community Development Foundation,
            Louisville, KY for after school mentoring program;
                $18,000--Robbie Valentine Stars Club Education
            Program, Louisville, KY for mentoring programs;
                $14,000--Shiloh Community Renewal Center in
            Louisville, KY for after school and summer tutoring;
                $276,000--Tulare County Office of Education,
            Visalia, CA for a Summer Youth program;
                $691,000--West-End YMCA Association, Ontario, CA
            for after school programming;
                $250,000--Big Brothers/Big Sisters of America to
            expand its school-based mentoring program to the State
            of New Hampshire;
                $250,000--City of Portland, Oregon to increase
            student achievement and family involvement with
            children through its Schools Uniting Neighborhoods
            program;
                $350,000--Cranston Public School District in
            Cranston, Rhode Island, in collaboration with community
            partners, to improve parental participation in student
            learning and enhance the use of technology in after
            school programs;
                $200,000--Discovery Center in Springfield, Missouri
            for expansion of science education programs available
            to at risk youth;
                $375,000--Bibb County Board of Education in Macon,
            Georgia for after school programming;
                $200,000--John A. Logan College to develop a
            community learning center in rural Southern--Illinois;
                $100,000--Project 2000 for mentoring and other
            support services for low-income and inner-city students
            in the District of Columbia;
                $250,000--Holy Redeemer Health System in
            Philadelphia, Pennsylvania for after school programs
            for at risk children;
                $1,100,000--State of Alaska for extended learning
            opportunities for school children provided through the
            Right Start program;
                $400,000--National Ten-Point Leadership Foundation
            in Boston, MA to address the mentoring needs of at-risk
            inner-city youth;
                $425,000--Clark County School District, Las Vegas,
            Nevada for an after school community learning center;
                $293,000--Centennial School District, Circle Pines,
            Minnesota, for an after school program;
                $213,000--City School District of New Rochelle, New
            York, for an after school program;
                $370,000--Abbotsford School District, Abbotsford,
            Wisconsin, for an after school program;
                $213,000--Community School District 24, Glendale,
            New York for before- and after-school programs;
                $213,000--Community School District 28, Forest
            Hills, New York for an after school program;
                $213,000--Community School District 30, Jackson
            Heights, New York for an after school program;
                $60,000--Crosby Independent School District in
            Barrett Station, Texas, for an after school program;
                $85,000 Eastchester Union Free School District,
            Eastchester, New York for an after school program;
                $128,000--Fontana Unified School District, Fontana,
            California, for the educational component of a teen
            center for at-risk youth;
                $234,000--Sauk Prairie Schools, Sauk City,
            Wisconsin for an after school program;
                $468,000--Hastings Public Schools, Hastings,
            Minnesota, for an after school program;
                $750,000--Hayward Community School District,
            Hayward, Wisconsin for an after school;
                $191,000--Independence School District,
            Independence, Missouri, to expand before and after
            school programs;
                $510,000--Macomb County Intermediate School
            District, Michigan for the ``Kids Klub'' after school
            program;
                $1,275,000--Milwaukee Public Schools, Wisconsin,
            for after school programs;
                $170,000--New London Public Schools, New London,
            Connecticut, for an after school program;
                $298,000--New York Hall of Science in Queens, New
            York for an after school program;
                $629,000--Pojoaque Valley Schools in Pojoaque, New
            Mexico for the Para Los Ninos after school consortium;
                $213,000--Port Chester-Rye Union Free School
            District, Port Chester, New York for an after school
            program;
                $850,000--Rock Island County Regional Office of
            Education, Moline, Illinois for after school programs
            in the Moline-Coal Valley School District and the Rock
            Island-Milan School District;
                $361,000--South Washington County Schools, Cottage
            Grove, Minnesota, for an after school program;
                $340,000--St. Clair County Intermediate School
            District, Michigan for the ``Kids Klub'' after school
            program;
                $230,000--St. Francis School District, Milwaukee,
            Wisconsin for an after school program;
                $1,300,000--Wausau School District, Wausau,
            Wisconsin, for an after school program;
                $170,000--Windham Public Schools, Willimantic,
            Connecticut, for an after school program; and
                $2,500,000--Expansion of Gallery 37 after school
            programming in Chicago, Illinois.
          The conference agreement includes bill language stating
    that the Secretary shall strongly encourage applications for
    21st Century Community Learning Center grants to be submitted
    jointly by a local educational agency (or a consortium of local
    educational agencies) and a community-based organization,
    including public or private entities with demonstrated
    effectiveness in providing educational or related services to
    individuals in the community, such as child care providers,
    youth development organizations (such as YMCAs, the Boys and
    Girls Clubs, Big Brothers Big Sisters of America, Camp Fire
    Boys and Girls, and the Girl Scouts), museums, libraries, and
    Departments of Parks and Recreation. In including this
    language, the conferees intend that the Secretary shall
    strongly encourage joint applications in order to promote local
    collaboration and coordination of services. This is especially
    important where more than one application is received proposing
    to serve the same community. Additionally, the language
    requires all applications submitted to the Secretary to contain
    evidence that the project includes elements that are designed
    to assist students to meet or exceed State and local standards
    in core academic subjects, as appropriate to the needs of
    participating children. The Senate bill included language
    stating that a community-based organization that has experience
    in providing before- and after-school services shall be
    eligible to receive a grant on the same basis as a school or
    consortium, and stating that the Secretary shall give priority
    to any applications jointly submitted by a community-based
    organization and a school or consortium. The House bill
    contained no similar language.
    Small Schools
          The conference agreement includes $125,000,000 for the
    Small, Safe and Successful Schools initiative authorized under
    section 10105 of part X of the Elementary and Secondary
    Education Act. The House bill included funding for this
    initiative under the Fund for the Improvement of Education and
    the Senate bill proposed no funding.
          The conferees agree that these funds shall be used only
    for activities related to the redesign of large high schools
    enrolling 1,000 or more students, and that this initiative
    shall continue to be jointly managed by the Office of
    Elementary and Secondary Education and the Office of Vocational
    and Adult Education.

                        EDUCATION FOR THE DISADVANTAGED

          The conference agreement includes $9,532,621,000 for
    Education for the Disadvantaged instead of $8,986,800,000 as
    proposed by the Senate and $8,816,986,000 as proposed by the
    House. The agreement includes advance funding for this account
    of $6,758,300,000 instead of $6,204,763,000 as proposed by the
    House and $6,223,342,000 as proposed by the Senate.
          For Grants to Local Educational Agencies (LEAs) the
    agreement provides $8,601,721,000 instead of $8,335,800,000 as
    provided by the Senate and $7,941,397,000 as provided by the
    House. Of the funds made available for basic grants,
    $5,394,300,000 becomes available on October 1, 2001 for the
    academic year 2001-2002.
          The conference agreement includes $7,237,721,000 for
    basic grants and $1,364,000,000 for concentration grants. For
    fiscal year 2001, $1,158,397,000 was advance funded in the
    fiscal year 2000 Departments of Labor, Health and Human
    Services and Education and Related Agencies Act (P.L. 105-227).
    The funding of $1,364,000,000 for concentration grants is
    advanced for fiscal year 2002.
          The conferees have included $225,000,000 for school
    improvement activities under section 1116(c) of the Elementary
    and Secondary Education Act (ESEA) of 1965 to assist low
    performing schools under Title I of ESEA. School improvement
    activities are those measures designed to help turn around low
    performing schools. One hundred percent of the funds provided
    for these activities are to be allocated by states to school
    districts.
          The conferees have also included a requirement that all
    school districts receiving funds under Part A of Title I shall
    provide students in low performing Title I schools with the
    option to transfer to another public school or public charter
    school in the school district, unless prohibited by state or
    local law or policy. Local educational agencies located within
    States that qualify for the small state minimum under Title I
    Part A are not required to comply with this requirement, but
    may comply if they so choose.
          The conference agreement includes $6,000,000 for capital
    expenses for private school children as proposed by the Senate.
    The House bill contained no funding for this program.
          The conference agreement includes $250,000,000 for the
    Even Start program as proposed by the House instead of
    $185,000,000 as proposed by the Senate.
          The conference agreement includes $380,000,000 for the
    migrant education program as proposed by the Senate instead of
    $354,689,000 as proposed by the House. The agreement also
    includes $46,000,000 for neglected and delinquent youth instead
    of $50,000,000 as proposed by the Senate and $42,000,000 as
    proposed by the House.
          The conference agreement includes $8,900,000 for
    evaluation of title I programs as proposed by the House. The
    Senate bill did not propose funding for this activity.
          The conference agreement includes $210,000,000 for the
    comprehensive school reform demonstration program instead of
    $190,000,000 as proposed by the House. The Senate bill did not
    propose funding for this activity. The conferees direct the
    Department to follow the directives in the report accompanying
    the fiscal year 1998 bill (House Report 105-390) and in the
    conference report accompanying the fiscal year 1999 bill (House
    Report 105-825) in administering this program.
          For the education for the disadvantaged program, the
    agreement includes a provision not contained in either House or
    Senate bills which allows each state and local educational
    agency (LEA) to receive the greater of either the amount it
    would receive at specified levels under the 100% hold harmless
    contained in the Senate bill or what it would receive using the
    statutory formulas. This comparison is intended to be used for
    allocating funds in fiscal year 2001 for both basic and
    concentration grants. The conferees expect the Department to
    use updated demographic and financial expenditure data in
    determining allocations when such data becomes available. The
    Senate bill included a 100% hold harmless for States and LEAs
    for both basic and concentration grants. The House bill
    contained no similar provision.
          The conferees adopt language included in the Senate bill
    providing that the Department shall make 100% hold harmless
    awards to LEAs that were eligible for concentration grants in
    2000, but are not eligible to receive grants in fiscal year
    2001.
          The conferees also adopt language included in the Senate
    bill providing that the Secretary of Education shall not take
    into account the 100% hold harmless provision in determining
    State allocations under any other program. The House bill did
    not contain these hold harmless provisions.

                                   IMPACT AID

          The conference agreement includes $993,302,000 for the
    Impact Aid programs instead of $985,000,000 as proposed by the
    House and $1,075,000,000 as proposed by the Senate. For basic
    grants the agreement includes $882,000,000; for payments for
    children with disabilities the conferees include $50,000,000.
    The agreement also includes $8,000,000 for facilities
    maintenance, $12,802,000 for construction, and $40,500,000 for
    payments for federal property. The conferees note that funds
    for basic grants and payments for heavily impacted districts
    are combined pursuant to the provisions of the Impact Aid
    Reauthorization Act of 2000.
          Sufficient funding is provided within the account for
    construction for the following: $1,981,000 for the North
    Chicago Community Unit School District 187; $921,000 for the
    Wheatland School District, Wheatland, California; $400,000 for
    Brockton Elementary Public School District in Montana;
    $2,600,000 for Craig School District in Alaska; and $900,000
    for Cannon Ball Elementary School on Standing Rock Sioux
    Reservation in Cannon Ball, North Dakota.
          The conferees also include the following language
    provisions: timely filing of an application by the Academy
    School District 20 in Colorado; restoration of payments to
    school districts affected by a section 8002 cap in 1998; and
    deeming eligibility for Kadoka School District in South Dakota.
    Neither the House nor Senate bills contained similar
    provisions.

                          SCHOOL IMPROVEMENT PROGRAMS

          The conference agreement includes $4,872,084,000 for
    School Improvement Programs instead of $3,165,334,000 as
    proposed by the House and $4,672,534,000 as proposed by the
    Senate. The agreement provides $3,107,084,000 in fiscal year
    2001 and $1,765,000,000 in fiscal year 2002 funding for this
    account.
    Eisenhower professional development state and local activities
          For Eisenhower professional development state and local
    activities, the conferees provide $485,000,000. The House bill
    provided $1,750,000,000 for the Teacher Empowerment Act,
    subject to authorization, which included funds previously
    dedicated to the Eisenhower professional development programs.
    The Senate bill provided $435,000,000.
          The conference agreement includes bill language providing
    that a local educational agency shall use funds received in
    excess of the allocation received for the preceding fiscal year
    to improve teacher quality by reducing the percentage of
    teachers who are uncertified, teaching out of field, or who
    lack sufficient content knowledge to teach effectively in the
    areas they teach. These additional funds may be used for
    mentoring programs for new teachers, to provide opportunities
    for teachers to participate in multi-week institutes, such as
    those offered in the summer months that provide intensive
    professional development and to implement incentives to retain
    quality teachers who have a record of success in helping low-
    achieving students improve their academic success. State
    educational agencies and State agencies for higher education
    may also use additional funds provided in excess of the
    allocation received for the preceding fiscal year for multi-
    week institutes, such as those provided in the summer months,
    that provide intensive professional development in partnership
    with local educational agencies, and to provide grants to
    recruit, prepare, retain, and train school principals and
    superintendents, especially individuals serving or intending to
    serve in high-poverty, low-performing schools and districts.
          The conference agreement also includes $45,000,000 within
    the amount for Eisenhower state grants to be available to
    States to support efforts to meet the requirements under
    section 1111 of title I of the Elementary and Secondary
    Education Act of 1965 or the requirements for State eligibility
    for the Ed-Flex Partnership Act of 1999.
    Eisenhower professional development national activities
          The conference agreement provides $44,000,000 for
    Eisenhower professional development national activities under
    this account.
          Early Childhood Educators.--Within the funds available
    for Eisenhower professional development national activities,
    the conference agreement includes $10,000,000 for training
    early childhood educators and caregivers in high-poverty
    communities to focus on professional development activities to
    further children's language and literacy skills to help prevent
    them from encountering reading difficulties once they enter
    school.
          Teacher Recruitment Initiatives.--Within the funds
    available for Eisenhower professional development activities,
    the conference agreement also includes $34,000,000 for new
    teacher recruitment initiatives. The conferees believe that an
    expanded effort to get more talented individuals from non-
    traditional routes into classrooms is warranted and is an
    efficient means to get highly skilled people into schools at a
    time when the demand for these skills is the greatest. For
    example, the conferees acknowledge that the Troops to Teachers
    and Teach for America programs have been innovative models for
    recruiting qualified, nontraditional candidates into teaching
    and offer viable solutions to our nation's need to hire over
    2.2 million teachers over the next ten years to replace veteran
    retiring teachers and to accommodate additional student
    enrollment.
          Of the amount made available for teacher recruitment
    initiatives, $3,000,000 shall be available to the Secretary for
    transfer to the Defense Activity for Non-Traditional Education
    Support of the Department of Defense (Troops-to-Teachers). The
    remaining $31,000,000 available for teacher recruitment
    initiatives shall be available for grants as described in the
    prior paragraph for local educational agencies, State
    educational agencies, educational service agencies, or
    nonprofit agencies and organizations, including organizations
    with expertise in teacher recruitment, or partnerships
    comprised of these entities to recruit, prepare, place and
    support mid-career professionals from diverse fields who
    possess strong subject matter skills to become teachers,
    particularly in high-need fields such as mathematics, science,
    foreign languages, bilingual education, reading, and special
    education; and to attract, recruit, screen, select, train,
    place and provide financial incentives to recent college
    graduates with outstanding academic records and a baccalaureate
    in a field other than education to become fully qualified
    teachers through nontraditional routes.
    Innovative education program strategies
          For innovative education program strategies, title VI of
    the Elementary and Secondary Education Act of 1965, the
    conference agreement includes $385,000,000 instead of
    $3,100,000,000 as proposed by the Senate and $365,750,000 as
    proposed by the House.
          The conferees support the use of funds appropriated under
    section 6301(b) to provide single-sex school or classroom
    programs provided that the recipient ``complies with applicable
    law,'' a phrase intended to incorporate all relevant Supreme
    Court opinions, including U.S. v. Virginia, 116 S. Ct. 2264
    (1996), as proposed by the Senate. The House bill contained no
    similar provision. The conferees intend that this provision
    does not require local educational agencies to use title VI
    funds only for gender equity activities.
    Class size
          The conference agreement includes $1,623,000,000 to
    continue the initiative to reduce class size that was begun in
    fiscal year 1999. The House bill provided $1,750,000,000 for
    the Teacher Empowerment Act, subject to authorization. The
    Senate bill provided $3,100,000,000 for activities to improve
    teacher quality, reduce class size, and renovate school
    facilities and to carry out activities under title VI of the
    Elementary and Secondary Education Act of 1965.
          The conference agreement provides that the allocation of
    funds under section 306 to the States shall be based on the
    proportional share that each State received from the fiscal
    year 1999 appropriation for class size reduction. States will
    continue to allocate their grant funds among local educational
    agencies based on a formula that reflects both their relative
    numbers of children in low-income families and their school
    enrollments.
          Local educational agencies would use funds for
    recruiting, hiring and training fully qualified regular and
    special education teachers who are certified within the States,
    have a baccalaureate degree and demonstrate subject matter
    knowledge in their content areas. Twenty five percent of these
    funds may be used by local educational agencies to test new
    teachers for academic content knowledge, to meet State
    certification requirements, or to provide professional
    development for existing teachers. In addition, local
    educational agencies may use these funds for carrying out
    activities authorized under section 2210 of the Elementary and
    Secondary Education Act of 1965 (the Eisenhower Professional
    Development program); mentoring programs for new teachers;
    providing opportunities for teachers to attend multi-week
    institutes, such as those provided in the summer months, that
    provide intensive professional development in partnership with
    local educational agencies; and carrying out initiatives to
    promote the retention of highly qualified teachers who have a
    record of success in helping low-achieving students improve
    their academic success. Such activities shall have the goal of
    ensuring that all instructional staff are fully qualified.
          A local educational agency that has already reduced class
    size in the early grades may use its funds to make further
    reductions in grades kindergarten through 3 or other grades, or
    carry out activities to improve teacher quality. A local
    educational agency in which 10 percent or more of its
    elementary teachers have not met applicable State and local
    certification requirements (including certification through
    State or local alternative routes), or if such requirements
    have been waived, may use 100 percent of funds under this
    program for the purpose of helping those teachers become
    certified or to help teachers who lack sufficient content
    knowledge to teach effectively in the areas they teach to
    obtain that knowledge. A local educational agency must notify
    the State educational agency of the percentage of funds it will
    use for these purposes.
          A local educational agency that receives an award under
    this section that is less than the starting salary for a new
    teacher may use these funds to help pay the salary of a teacher
    or pay for professional development activities to ensure that
    all the instructional staff are fully qualified.
          To improve accountability, the conference agreement
    maintains language included as part of last year's
    appropriations law requiring that each State and local
    educational agency receiving funds publicly report to parents
    on their progress in reducing class size and in increasing the
    percentage of classes in core academic areas taught by fully
    qualified teachers, and on the impact that such activities have
    had on increasing student academic achievement. Parents, upon
    request, will also have the right to know the professional
    qualifications of their children's teachers.
          The conference agreement requires the Secretary of
    Education to inform local educational agencies of the
    additional flexibility provided to local educational agencies
    in which more than 10 percent of their teachers are not fully
    qualified to spend all of these funds on professional
    development activities. The conferees also intend that the
    Secretary notify local educational agencies of the flexibility
    provisions already incorporated into the class size reduction
    initiative, including the ability of local educational agencies
    to use up to 25 percent of local educational agency allocations
    on professional development activities; to spend funds on
    professional development for existing teachers if the local
    educational agency receives an award that is less than the
    starting salary for a new fully qualified teacher; and to spend
    funds to reduce class sizes in other grades or to improve
    teacher quality if the local educational agency has already
    reduced class sizes in the early grades to 18 or fewer
    children.
    School renovation
          The conference agreement includes $1,200,000,000 for
    grants to local educational agencies for emergency school
    renovation and repair activities; activities under part B of
    the Individuals with Disabilities Education Act (IDEA); and
    technology activities. The House bill provided no funding for
    this activity. The Senate bill provided $3,100,000,000 for
    activities to improve teacher quality, reduce class size,
    renovate school facilities and to carry out activities under
    title VI of the Elementary and Secondary Education Act of 1965.
          The conference agreement provides $75,000,000 of the
    $1,200,000,000 for formula grants to local educational agencies
    with at least 50 percent of their student population living on
    Native American or Native Alaskan lands. These funds may be
    used for school renovations and repairs, as well as new
    construction activities, which may include construction of new
    facilities for specialized programs such as vocational-
    technical education and the installation of plumbing, sewage
    and electrical systems. For some of the schools in these local
    educational agencies, new construction may represent a more
    prudent use of resources than the repair or renovation of
    existing structures.
          The conference agreement provides $3,250,000 of the
    $1,200,000,000 for grants to local educational agencies in
    outlying areas for the renovation and repair of high-need
    schools.
          The conference agreement provides $25,000,000 for a new
    Charter Schools Facilities Financing Demonstration Program
    authorized as subpart 2 of part C of title X of the Elementary
    and Secondary Education Act (ESEA). Charter schools are break-
    the-mold public schools that are free of bureaucratic red tape,
    and accountable for academic results. Many of these innovative
    schools receive no assistance from their states for capital
    financing expenses, or at best, only a modest amount of
    assistance for capital expenses. Furthermore, in most states,
    charter schools do not have bonding authority or a tax base for
    capital financing.
          The Charter School Facilities Financing Demonstration
    Program would establish a credit enhancement demonstration
    program for the acquisition, renovation, or construction of
    public charter schools. Non-profit private entities (including
    those that benefit Native Alaskans), public entities, or
    consortia of the two entities would compete for one-time grants
    to be used to establish reserve funds to leverage private
    capital. For example, the reserve funds could be used for
    activities such as guaranteeing bonds, notes, or leases;
    encouraging private lending; or facilitating the issuance of
    bonds. The conferees intend that the Secretary of Education
    widely disseminate information gleaned from these demonstration
    efforts with a view toward these demonstrations serving as
    models for replication in states with charter schools.
          The conference agreement provides that the remaining
    funds ($1,096,750,000) would be distributed to State
    educational agencies based on the title I, part A allocations
    under the Elementary and Secondary Education Act, with a small
    state minimum of one half of one percent. After allowing for
    not more than one percent set aside at the state level for
    administrative expenses, the State educational agency or other
    entity with jurisdiction over school facilities financing, as
    the case may be, would distribute 75 percent of the state's
    funds to local educational agencies through competitive grants
    for emergency school repair and renovation activities.
          The state educational agency or other responsible entity
    would ensure, through a competitive grant process, that high
    poverty local educational agencies receive, in the aggregate,
    shares of the state allocation of Federal emergency repair and
    renovation funds that are proportionate to their share of the
    state allocation of title I, part A funds. For the purposes of
    this program high poverty school districts are considered to be
    those with 30 percent or greater child poverty or 10,000 or
    greater poor children. The state educational agency or entity
    would also ensure that rural local educational agencies
    receive, in the aggregate, shares of the state allocation of
    Federal emergency repair and renovation funds that are
    proportionate to their share of title I, part A funds. Each
    state shall determine which local educational agencies within
    the state qualify as rural for the purposes of this program.
          Those local educational agencies eligible to compete for
    an emergency repair and renovation grant either because of
    their high poverty status or their rural status, but who do not
    actually receive a grant, may be considered for a grant from
    the remaining funds for repair and renovation activities.
    Additionally, local educational agencies not eligible to
    receive a grant because of their lack of high poverty or rural
    status may be considered for a grant from the remaining repair
    and renovation funds.
          These funds may be used by local educational agencies to
    meet the requirements of federal mandates such as the Americans
    with Disabilities Act, Section 504 of the Rehabilitation Act,
    and asbestos abatement requirements. Funds may also be used for
    the renovation, acquisition, and repair of charter schools and
    for emergency renovations or repairs to public school
    facilities to ensure the health and safety of students and
    staff (repairing, replacing, or installing roofs, electrical
    wiring, plumbing systems, or sewage systems; repairing,
    replacing, or installing heating, ventilation, or air
    conditioning systems, including insulation; and bringing
    schools into compliance with fire and safety codes).
          The conference agreement clarifies that public charter
    schools that are considered to be a local educational agency
    under state law are eligible to compete for renovation and
    repair funds from the state in the same manner as local
    educational agencies. In addition, public charter schools that
    are not considered to be a local educational agency are
    eligible to receive assistance, in the same manner as a public
    school, from a local educational agency that is awarded a grant
    under this section.
          The conference agreement provides for the equitable
    participation of non-profit, private elementary and secondary
    schools in repair and renovation activities. The eligible non-
    profit, private elementary and secondary schools would be
    limited to those schools with a child poverty rate of 40
    percent or greater. Private school participation, in general,
    would be controlled by section 6402 of the Elementary and
    Secondary Education Act (ESEA), which provides for the
    equitable participation of children enrolled in non-profit
    private elementary and secondary schools in the title VI block
    grant program of ESEA. This provision would allow these schools
    to receive the following services: (1) modifications of private
    school facilities in order to meet the standards under the
    Americans with Disabilities Act; (2) modifications of private
    school facilities to meet the standards under Section 504 of
    the Rehabilitation Act; and (3) asbestos abatement or removal
    from such school facilities.
          The conference agreement includes a prohibition on using
    federal emergency repair and renovation funds to supplant state
    and local funds available for repair and renovation. However,
    federal funds used for compliance with the Americans with
    Disabilities Act and Section 504 of the Rehabilitation Act
    would not be subject to a supplement, not supplant requirement.
    While schools are required to make facilities modifications to
    ensure accessibility and should have already made these
    modifications, it is most important that these modifications be
    made. Minimizing the restrictions placed upon federal funds for
    these purposes can help ensure that school buildings become
    accessible to disabled individuals.
          The conference agreement also provides for flexibility in
    the use of funds by local educational agencies. State
    educational agencies would distribute 25 percent of the funds
    they receive to local educational agencies through a
    competitive grant process for activities under part B of IDEA,
    technology activities, or both IDEA and technology activities.
    State educational agencies would base the grant awards for IDEA
    activities upon the need of a local educational agency for
    additional funds due to substantially high costs associated
    with serving a child with a disability; the costs of special
    education and related services, including transportation as
    needed to assist a child with a disability to benefit from
    special education; the costs of assistive technology devices
    and services, and the costs associated with helping children
    with disabilities progress toward state performance goals and
    indicators. State educational agencies would base the
    technology grant awards upon the need of a local educational
    agency for additional funds for technology activities carried
    out in connection with school repair and renovation, including
    wiring; acquiring hardware and software; acquiring connectivity
    linkages and resources; and acquiring microwave, fiber optics,
    cable, and satellite transmission equipment.
          Under the conference agreement, local educational
    agencies choose whether to apply for an IDEA grant, a
    technology grant, or both categories of grants. Local
    educational agencies that receive competitive grants for
    activities authorized under part B of IDEA would be required to
    use the grant funds in compliance with the provisions of that
    part. This requirement includes providing for the participation
    of private school children eligible for IDEA services.
    Technology activities would be for technology activities
    carried out in connection with school repair and renovation and
    include wiring; acquiring hardware and software; acquiring
    connectivity linkages and resources; and acquiring microwave,
    fiber optics, cable, and satellite transmission equipment.
    Safe and drug free schools
          The conference agreement includes $644,250,000 for the
    Safe and Drug Free Schools and Communities Act instead of the
    $599,250,000 as proposed by the House and $642,000,000 as
    proposed by the Senate.
          Included within this amount is $439,250,000 for state
    grants as proposed by the House and $447,000,000 as proposed by
    the Senate.
          The agreement also includes $155,000,000 for national
    programs instead of $145,000,000 as proposed by the Senate and
    $110,000,000 as proposed by the House. Within this amount, the
    conferees include $117,000,000 to support the Safe Schools/
    Healthy Students initiative. Within the funds for national
    programs, the agreement also provides $10,000,000 to remain
    available until expended for Project School Emergency Response
    to Violence to provide services to local educational agencies
    in which the learning environment has been disrupted due to a
    violent or traumatic crisis.
    Reading is fundamental
          For the Reading is Fundamental program, the conference
    agreement provides $23,000,000 as proposed by the Senate
    instead of $21,000,000 as proposed by the House.
    Arts in education
          For Arts in Education, the conference agreement includes
    $28,000,000 instead of $16,500,000 as proposed by the House and
    $18,000,000 as proposed by the Senate. The conferees provide
    that within this total, $6,500,000 is for VSA arts, $5,500,000
    is for the John F. Kennedy Center for the Performing Arts,
    $2,000,000 is to be used to continue a youth violence
    prevention initiative, and $10,000,000 is to be used for the
    Secretary to make grants to school districts, state educational
    agencies, institutions of higher education and/or state and
    local non-profit arts organizations for activities authorized
    under subpart 1 of the Arts in Education program, particularly
    for supporting model projects and programs that integrate arts
    education into the regular elementary and secondary school
    curriculum and that provide for the development of model
    preservice and inservice professional development programs for
    arts educators and other instructional staff. In addition,
    $2,000,000 is for model professional development programs for
    music educators and $2,000,000 is for activities authorized
    under subpart 2 of the Arts in Education program.
    Education for homeless children and youth
          The conference agreement includes $35,000,000 for
    Education for Homeless Children and Youth instead of
    $32,000,000 as proposed by the House and $31,700,000 as
    proposed by the Senate.
    Education of Native Hawaiians
          The conference agreement includes $28,000,000 for the
    Education of Native Hawaiians as proposed by the Senate instead
    of $23,000,000 as proposed by the House. When making awards for
    this program, the Department should provide: $6,500,000 for
    curricula development, teacher training, and recruitment
    programs, including native language revitalization (for which
    the conferees encourage priority to be given to the University
    of Hawaii at Hilo Native Language College), aquaculture,
    prisoner education initiatives, waste management, computer
    literacy, big island astronomy, and indigenous health programs;
    $1,600,000 for community-based learning centers; $3,200,000 for
    the native Hawaiian higher education program; $500,000 for the
    native Hawaiian education councils; and $10,900,000 for family
    based education centers, including early childhood education
    for native Hawaiian children. If the Department proposes to
    provide 10% less than the stated amounts for any activity
    within this program, it must notify the House and Senate
    Committees on Appropriations at least 90 days prior to the end
    of the fiscal year.
    Alaska Native educational equity
          The conference agreement includes $15,000,000 for the
    Alaska Native Educational Equity program as proposed by the
    Senate instead of $13,000,000 as proposed by the House. From
    the increase in funds provided over the fiscal year 2000 level,
    $1,000,000 shall be for the Alaska Humanities Forum for
    operation of the Rose student exchange program and $1,000,000
    shall be for the Alaska Native Heritage Center for support of
    its cultural education programs.
    Charter schools
          The conference agreement includes $190,000,000 for
    Charter Schools instead of $175,000,000 as proposed by the
    House and $210,000,000 as proposed by the Senate.

                               READING EXCELLENCE

          The conference agreement includes $286,000,000 for
    activities authorized under the Reading Excellence Act as
    proposed by the Senate instead of $260,000,000 as proposed by
    the House. The agreement provides $91,000,000 in fiscal year
    2001 and $195,000,000 in fiscal year 2002 funding for this
    account.

                                INDIAN EDUCATION

          The conference agreement includes $115,500,000 for Indian
    Education as proposed by the Senate instead of $107,765,000 as
    proposed by the House.

                       BILINGUAL AND IMMIGRANT EDUCATION

          The conference agreement includes $460,000,000 for
    Bilingual and Immigrant Education programs instead of
    $406,000,000 as proposed by the House and $443,000,000 as
    proposed by the Senate.
          For instructional services, the conference agreement
    includes $180,000,000 as proposed by the Senate instead of
    $162,500,000 as proposed by the House. For support services,
    the agreement provides $16,000,000 instead of $14,000,000 as
    proposed by both the House and the Senate. For professional
    development, the conference agreement includes $100,000,000
    instead of $85,000,000 as proposed by the Senate and
    $71,500,000 as proposed by the House. For immigrant education,
    the conference agreement includes $150,000,000 as proposed by
    both the House and the Senate. The agreement also provides
    $14,000,000 for foreign language assistance as proposed by the
    Senate instead of $8,000,000 as proposed by the House.

                               Special Education

          The conference agreement includes $7,439,948,000 for
    Special Education instead of $7,353,141,000 as proposed by the
    Senate and $6,550,161,000 as proposed by the House. The
    agreement provides $2,367,948,000 in fiscal year 2001 and
    $5,072,000,000 in fiscal year 2002 funding for this account.
          Included in these funds is $6,339,685,000 for Grants to
    States part B instead of $6,279,685,000 as proposed by the
    Senate and $5,489,685,000 as proposed by the House. This
    funding level provides an additional $1,350,000,000 to assist
    the States in meeting the additional per pupil costs of
    services to special education students.
          The conference agreement includes $383,567,000 for Grants
    for Infants and Families as proposed by the Senate instead of
    $375,000,000 as proposed by the House.
          The conference agreement includes $49,200,000 for state
    program improvement grants instead of $45,200,000 as proposed
    by the House and $35,200,000 as proposed by the Senate. The
    agreement includes $77,353,000 for research and innovation
    instead of $64,433,000 as proposed by the House and $74,433,000
    as proposed by the Senate. Within the amounts provided for
    Special Education Research and Innovation, the conference
    agreement includes $7,353,000 for the following:
                --$921,000 for the University of Louisville
            Research Foundation, Louisville, KY for research in
            pediatric sleep disorders and learning disabilities;
                --$461,000 for the University of Northern Iowa,
            Cedar Falls, IA, National Institute of Technology for
            Inclusive Education for expanded outreach efforts;
                --$1,421,000 for the Salt Lake City Organizing
            Committee or to a governmental agency or a not-for-
            profit organization designated by the Salt Lake City
            Organizing Committee for the 2002 Paralympic Games;
                --$1,600,000 to the National Easter Seals Society
            for providing training, technical support, services and
            equipment through the Early Childhood Development
            Project in the Mississippi Delta Region;
                --$1,000,000 for the University of Northern
            Colorado's National Center for Low Incidence
            Disabilities in Greeley, Colorado to demonstrate
            innovative and effective approaches to teaching special
            education students;
                --$500,000 for the Baird Center in Burlington,
            Vermont for a national demonstration to educate
            students with serious emotional and behavioral
            problems;
                --$750,000 for the Center for Literacy and
            Assessment at the University of Southern Mississippi to
            increase its research dissemination, teacher and parent
            training, development of replicable models for reading
            assessment and intervention;
                --$250,000 for the Hebrew Academy for Special
            Children in Parksville, New York to continue its
            demonstration program to enhance the academic and
            social outcomes of developmentally disabled children;
            and
                --$450,000 for Parents, Inc. in Alaska to train
            teachers and specialists in the use of technology to
            support service delivery to children with disabilities
            in rural Alaska.
          The conference agreement includes $53,481,000 for
    technical assistance and dissemination instead of $45,481,000
    proposed by both the House and the Senate. The agreement also
    includes $26,000,000 for parent information centers as proposed
    by the Senate instead of $22,000,000 as proposed by the House.
          Included in the agreement is $37,210,000 for technology
    and media services instead of $36,410,000 as proposed by the
    House and $35,323,000 as proposed by the Senate. The agreement
    includes $9,500,000 for Recordings for the Blind and Dyslexic
    for the purposes described in both the House and Senate
    reports.
          The agreement also includes $1,500,000 for Public
    Telecommunications Information and Training Dissemination as
    proposed by the Senate. The House bill did not contain funds
    for this activity.

                REHABILITATION SERVICES AND DISABILITY RESEARCH

          The conference agreement includes $2,805,339,000 for
    Rehabilitation Services and Disability Research instead of
    $2,776,803,000 as proposed by the House and $2,799,519,000 as
    proposed by the Senate.
          The conference agreement includes $11,647,000 for client
    assistance state grants instead of $10,928,000 as proposed by
    the House and $11,147,000 as proposed by the Senate. The
    agreement also includes $21,092,000 for demonstration and
    training programs instead of $16,492,000 as proposed by the
    House and $21,672,000 as proposed by the Senate.
          The conference agreement includes $2,350,000 for migrant
    and seasonal farmworkers as proposed by the House instead of
    $2,850,000 as proposed by the Senate. The agreement also
    includes $14,000,000 for Protection and Advocacy of Individual
    Rights as proposed by the House instead of $13,000,000 as
    proposed by the Senate.
          The conference agreement includes $20,000,000 for
    services for older blind individuals as proposed by the Senate
    instead of $18,000,000 as proposed by the House. The agreement
    also includes $8,717,000 for the Helen Keller Center for Deaf/
    Blind as proposed by the Senate instead of $8,550,000 as
    proposed by the House.
          The conference agreement includes $100,400,000 for the
    National Institute for Disability and Rehabilitation Research
    instead of $86,462,000 as proposed by the House and $95,000,000
    as proposed by the Senate. Within this amount, the conference
    agreement includes $400,000 for the Cerebral Palsy Foundation
    in Wichita, Kansas.
          The conference agreement includes $41,112,000 for
    Assistive Technology as proposed by the Senate instead of
    $34,000,000 as proposed by the House. The conference agreement
    includes language which overrides the authorizing statute to
    provide $22,069,000 for State Assistive Technology projects, a
    total of $2,680,000 for grants to protection and advocacy
    systems (a minimum grant of $50,000 each) and $1,363,000 for
    technical assistance activities to support States in sustaining
    and strengthening their capacity to address the assistive
    technology needs of individuals with disabilities. This
    language was not included in either the House or Senate bills.
          The agreement also retains language from the Senate bill
    which changes the matching requirements and funding provisions
    under title III of the Assistive Technology Act of 1998 in
    order to increase access to assistive technology for
    individuals with disabilities. The House bill contained no
    similar provision.
          Within the amounts provided for vocational rehabilitation
    demonstration and training programs, the conference agreement
    includes $4,600,000 for the following activities:
                $921,000--Krasnow Institute at George Mason
            University, Fairfax, VA for continuation of learning
            disability research;
                $921,000--Center for Discovery, International
            Family Institute, Sullivan County, NY for expansion of
            services to disabled persons;
                $230,000--Alabama Institute for Deaf and Blind in
            Talladega, AL for a demonstration grant for the
            National Community College for Students with Sensory
            Impairments;
                $500,000--Muhlenberg College in Pennsylvania for a
            national model program for teaching higher education
            students with disabilities;
                $200,000--Lewis and Clark Community College in
            Godfrey, Illinois to develop employment training
            services for persons with disabilities;
                $425,000--The Imaginarium in Vestal, New York for
            treating at risk, low income children with
            developmental disorders;
                $255,000--Eden Institute, Princeton, New Jersey for
            community-based services to children and adults with
            autism;
                $595,000--American Foundation for the Blind's
            National Literacy Center for the Visually Impaired,
            Atlanta, Georgia to provide state-of-the-art teacher
            training in the use of Braille, assistive and other
            technologies to improve literacy instruction of
            visually impaired children and adults;
                $553,000--Illinois State Board of Education for an
            Assistive Technology Exchange Program in Chicago,
            Illinois, to expand services to individuals with
            disabilities.

               Special Institutions for Persons With Disabilities

                     American Printing House for the Blind

          The conference agreement includes $12,000,000 for
    American Printing House for the Blind instead of $11,000,000 as
    proposed by the House and $12,500,000 as proposed by the
    Senate. This amount includes $800,000 for the American Printing
    House's commitment to provide accessible textbooks to students
    who are blind or visually impaired through its innovative
    Accessible Textbook Initiative and Collaboration Project.

                   National Technical Institute for the Deaf

          The conference agreement includes $53,376,000 for the
    National Technical Institute for the Deaf instead of
    $54,000,000 as proposed by the House and $54,366,000 as
    proposed by the Senate.
          The conferees direct the Department of Education to waive
    any contribution requirement for construction costs related to
    the dormitory renovation project.

                              Gallaudet University

          The conference agreement includes $89,400,000 for
    Gallaudet University as proposed by the House instead of
    $87,650,000 as proposed by the Senate.

                         Vocational and Adult Education

          The conference agreement includes $1,825,600,000 for
    Vocational and Adult Education instead of $1,718,600,000 as
    proposed by the House and $1,726,600,000 as proposed by the
    Senate. The agreement provides $1,034,600,000 in fiscal year
    2001 and $791,000,000 in fiscal year 2002 funding for this
    account.
          The conference agreement includes $1,100,000,000 for
    Vocational Education basic state grants as proposed by the
    House instead of $1,071,000,000 as proposed by the Senate.
          The conference agreement includes $5,600,000 for Tribally
    Controlled Postsecondary Vocational Institutions as proposed by
    the Senate instead of $4,600,000 as proposed by the House.
          The conference agreement includes $17,500,000 for
    vocational education national programs as proposed by the House
    and the Senate. The agreement also includes $9,000,000 to
    continue the occupational and employment information program as
    proposed by the Senate. The House bill did not include funding
    for this activity.
          The conference agreement includes $5,000,000 for the
    tech-prep education demonstration authorized under section 207
    of the Perkins Act. The agreement also includes $22,000,000 for
    State Grants for Incarcerated Youth as proposed by the Senate.
    The House did not provide funding for these activities.
          The conferees encourage the Department to give full and
    fair consideration to proposals from county probation
    departments collaborating with community-based organizations
    established to address the educational and employment needs of
    ex-offenders.
          The conference agreement includes $540,000,000 for adult
    education state grants instead of $470,000,000 proposed by both
    the House and the Senate. Within this amount, $70,000,000 is to
    be set aside for integrated English literacy and civics
    education services to new immigrants. Sixty-five percent of
    these funds will be allocated on the basis of a state's
    absolute need for services and thirty-five percent will be
    allocated on the basis of a state's recent growth in need for
    services. Each state is guaranteed a minimum grant of $60,000.
    For the purposes of allocating funds to States for these
    services, the conferees intend that the Department of Education
    use the most current data available from the Immigration and
    Naturalization Service of the Department of Justice to
    determine the number of immigrants admitted for legal permanent
    residence for each fiscal year. The House bill provided
    $25,500,000 for civics education services to new immigrants.
    The Senate bill contained no similar provision.

                          Student Financial Assistance

          The conference agreement includes $10,674,000,000 for
    Student Financial Assistance instead of $10,150,000,000 as
    proposed by the House and $10,639,000,000 as proposed by the
    Senate. The agreement sets the maximum Pell Grant at $3,750
    instead of $3,650 as proposed by the Senate and $3,500 as
    proposed by the House. The agreement provides $8,756,000,000
    for current law Pell Grants.
          The conference agreement includes $60,000,000 for Perkins
    Loan cancellations instead of $40,000,000 as proposed by the
    House and $75,000,000 as proposed by the Senate. The agreement
    also includes $55,000,000 for Leveraging Educational Assistance
    Partnerships (LEAP) as proposed by the Senate. The House bill
    did not provide funding for this program.
          The conference agreement also includes $1,000,000 for the
    loan forgiveness for child care providers program, instead of
    $10,000,000 provided in the Senate bill. The House bill did not
    include any funding for this program. The conferees are aware
    of the significant need for and benefits of high quality child
    care services, and for that reason, have included start up
    funding for this program. Limited funding has been provided in
    fiscal year 2001 solely due to the fact that few individuals
    will meet the eligibility requirements. The conferees expect
    the Secretary to be prepared to discuss the estimated number of
    eligible borrowers and amounts eligible to be forgiven at the
    fiscal year 2002 appropriations hearings to help make certain
    that sufficient funding is available for this program. In
    addition, the conferees direct the Department to ensure that
    information about the availability and benefits of this program
    is provided to all potentially eligible borrowers.
          The conferees encourage the Department of Education, on
    all existing and future web sites and publications where higher
    education financial aid information is provided, to fairly and
    accurately provide information with respect to the availability
    of loans through both the Federal Family Education Loan (FFEL)
    program and the Federal Direct Loan Program.
          The conferees support continuing funding for work
    colleges, authorized in section 448 of the Higher Education Act
    of 1965. These funds help support comprehensive work-service-
    learning programs around the Nation. Of the funds provided, the
    conference agreement includes $4,000,000 to continue and expand
    the work colleges program.
          The conferees are aware of concerns in the higher
    education community about the so-called ``12-hour rule'' and
    its unsuitability to address the needs of institutions of
    higher education throughout the nation that serve non-
    traditional students engaged in lifelong learning. The
    conferees are concerned about the potential for enormous
    paperwork burdens being placed on institutions of higher
    education in their attempts to comply with the 12-hour rule.
    The conferees understand that the Department of Education has
    agreed to meet with the higher education community about this
    issue. The conferees strongly encourage the Department to
    include all interested parties in this discussion, including
    those involved in efforts to assure the integrity of Federal
    student financial aid programs. The Department is requested to
    report the results of the discussions and any anticipated
    action on the part of the Department with respect to the 12-
    hour rule to the relevant Congressional committees by March 31,
    2001. By October 1, 2001, the Department is to make
    recommendations to the relevant congressional committees
    regarding the most appropriate means to maintain the integrity
    of Federal student assistance programs without creating
    unnecessary paperwork for institutions of higher education.

                                Higher Education

          The conference agreement includes $1,911,710,000 for
    Higher Education instead of $1,688,081,000 as proposed by the
    House and $1,704,520,000 as proposed by the Senate.
          The conference agreement includes $73,000,000 for
    strengthening institutions as proposed by the House instead of
    $65,000,000 as proposed by the Senate. The agreement also
    includes $68,500,000 for Hispanic Serving Institutions as
    proposed by the House instead of $62,500,000 as proposed by the
    Senate.
          The conference agreement includes $185,000,000 for
    Strengthening Historically Black Colleges and Universities as
    proposed by the House instead of $169,000,000 as proposed by
    the Senate.
          The conference agreement includes $45,000,000 for
    Historically Black Graduate Institutions as proposed by the
    House instead of $40,000,000 as proposed by the Senate.
          The conference agreement includes $6,000,000 for Alaska
    and Native Hawaiian Institutions as proposed by the Senate
    instead of $5,000,000 as proposed by the House.
          The conference agreement includes $15,000,000 for
    Strengthening Tribal Colleges as proposed by the Senate instead
    of $12,000,000 as proposed by the House. Of this amount,
    $5,000,000 shall be used for construction and renovation
    projects at tribally controlled colleges and universities.
          The conference agreement includes $146,687,000 for the
    Fund for the Improvement of Postsecondary Education instead of
    $31,200,000 as proposed by the House and $51,247,000 as
    proposed by the Senate. Within the amounts provided for the
    Fund for the Improvement of Postsecondary Education, the
    conference agreement includes $115,487,000 for the following:
                $277,000--Calhoun Community College, Decatur, AL
            for technology enhancements;
                $921,000--Jefferson State Community College,
            Birmingham, AL for technology enhancements and
            supporting infrastructure;
                $138,000--Wayne State College, Wayne, NE for
            development of a family business center;
                $2,721,000--University of Nebraska-Lincoln, in
            Lincoln, NE for the Nebraska Center for Information
            Technology Education;
                $691,000--Wayne State College, Wayne, NE for a
            computer initiative and improvement of technological
            infrastructure;
                $461,000--Laredo Community College, Laredo, TX for
            instructional equipment;
                $147,000--Spring Hill College, Mobile, AL for
            Regional Library Resource Center development;
                $2,482,000--Western Governor's University, Salt
            Lake City, UT for distance-learning programs;
                $369,000--Macon State College, Macon, GA for
            technology development;
                $369,000--Middle Georgia College, Cochran, GA for
            distance learning programs;
                $976,000--University of Virginia, Charlottesville,
            VA Center for Government Studies for the Youth
            Leadership Initiative;
                $737,000--City University, Bellevue, WA for
            distance learning;
                $921,000--Southeast Missouri State University, Cape
            Girardeau, MO for equipment and curriculum development
            associated with the University's Polytechnic Institute;
                $369,000--Millikin University, Decatur, IL for
            community outreach and experiential education programs;
                $921,000--Illinois State University at Normal, IL
            for the Center for Special Education Technology;
                $369,000--Mankato State University, Mankato, MN for
            a wireless campus initiative;
                $369,000--Winona State University, MN for
            technology enhancements;
                $461,000--Montana State University, Bozeman, MT for
            Educational Technology Leadership Institute;
                $461,000--Western Montana College of the University
            of Montana in Dillon, MT for the Rural Education
            Technology Center;
                $921,000--Wittenberg University, Springfield, OH
            for technology improvements;
                $921,000--California State University, Long Beach
            in Long Beach, CA for Technology-Enhanced Learning
            Project;
                $1,843,000--Elmira College, Elmira, NY for a
            Technology Enhancement Initiative;
                $921,000--University of Arkansas, Fayetteville, AR
            for the Social Work Research Center;
                $4,564,000--The Oklahoma Regents for Higher
            Education, Oklahoma City, OK for an educational
            telecommunications and information network utilizing
            facilities being made available in Ponca City, OK;
                $461,000--William Tyndale College, Farmington
            Hills, Michigan for Interactive learning center for the
            21st Century;
                $980,000--John Carroll University, University
            Heights, OH for operations and equipment related to the
            Center for Mathematics and Science Education, Teaching,
            and Technology;
                $1,713,000--San Bernardino Community College
            District to support the expansion of distance education
            telecourse broadcasting, including the purchase of
            equipment;
                $207,000--Office of Global Business &
            Entrepreneurship, Gordon Ford College of Business,
            Bowling Green, KY for technology;
                $461,000--Northwestern State University,
            Natchitoches, LA for Technological Infrastructure
            Improvements;
                $1,068,000--University of Colorado at Boulder,
            Boulder, CO for the ATLAS (Alliance for Technology,
            Learning and Society) Project for technology-enhanced
            learning;
                $921,000--Fort Hays State University, Center for
            Networked Learning, Hays, KS for information
            technology;
                $1,704,000--Ocean Institute, Dana Point, CA for the
            Ocean Education Center;
                $553,000--National Latino Research Center,
            California State University San Marcos, San Marcos, CA
            for training and research regarding Hispanic
            populations in the U.S.;
                $880,000--The Philadelphia University,
            Philadelphia, PA for the Center for Education
            Technology;
                $1,152,000--DePaul University, Chicago, IL for
            training and infrastructure improvement;
                $829,000--Barat College, Lake Forest, IL for the
            Center for Teacher Learning;
                $949,000--University of Arizona College of Medicine
            for the Integrative Medicine Distance Learning Program;
                $691,000--Kansas State University, Manhattan, KS
            for Great Plains Network Connectivity;
                $230,000--Kansas Technology Center, Pittsburg State
            University, Pittsburg, KS for manufacturing education;
                $461,000--Indiana Institute of Tech, Ft. Wayne, IN
            for technology enhancements;
                $921,000--Central Florida Community College, Ocala,
            FL for academic programming;
                $1,382,000--Southeastern Louisiana University,
            Hammond, LA for the Alternate Teacher Certification
            Technology Program;
                $921,000--University of Tennessee, Chattanooga
            Challenger Center, Chattanooga, TN for programmatic
            educational activities;
                $921,000--State Board of Career and Technology
            Education, Oklahoma Department of Career and Technology
            Education, Stillwater, OK for a Rural Education Virtual
            Tech Job Training System pilot program;
                $322,000--Center for International Trade
            Development at Oklahoma State University, Stillwater,
            OK for higher education international studies;
                $1,843,000--Delaware County Community College,
            Media, PA for technology infrastructure;
                $1,106,000--Shenandoah University, Winchester, VA
            for a technology education program;
                $2,499,000--University of Hawaii at Manoa for a
            joint project with the University of South Florida, the
            University of California at Los Angeles, CA and George
            Washington University for the Globalization Network
            program;
                $884,000--University of Idaho College of
            Engineering at Boise to enhance computing and modeling
            capabilities;
                $1,843,000--Heidelberg College, Tiffin, Ohio for
            science education and research, including laboratory
            and computer equipment;
                $4,146,000--Northern Illinois Center for
            Accelerator and Detector Development at Northern
            Illinois University, DeKalb, IL for equipment and
            operations;
                $921,000--University of Redlands, Redlands, CA for
            computer technology and networking;
                $276,000--New York Medical College for curriculum
            development;
                $1,705,000--Minnesota State Colleges and
            Universities, St. Paul, MN for development of an e-
            monitoring environment;
                $92,000--La Sierra University in Riverside, CA for
            educational equipment;
                $980,000--University of Alabama, Tuscaloosa, AL for
            the Child Development Research Center;
                $700,000--Center for the Advancement of Distance
            Education in Rural America (CADERA) in New Mexico;
                $400,000--Crime Victim Law Institute at the
            Northwestern School of Law, Lewis & Clark College in
            Portland, Oregon to continue the study and enhancement
            of the role of victims in the criminal justice system;
                $200,000--Urban Learning Center in Covington,
            Kentucky to expand education and student support
            programs that prepare economically disadvantaged
            individuals for post-secondary education;
                $500,000--Washington and Lee University in
            Lexington, Virginia for the Shepherd Program for the
            Study of Poverty;
                $900,000--University of Idaho in Moscow Interactive
            Learning Environments initiative designed to develop
            and improve Internet-based delivery of education
            programs;
                $1,000,000--Huntingdon College in Montgomery,
            Alabama to assist in the development of a program to
            enhance effective integration of computer technology in
            math and science instruction;
                $900,000--Eastern New Mexico University-Roswell to
            expand its aviation maintenance technology program;
                $1,300,000--University of Alabama in Tuscaloosa,
            Alabama to upgrade computer equipment and software in
            its Mathematics Learning Center for enhancement of
            undergraduate mathematics and science instruction and
            education;
                $1,020,000--Northwestern Michigan College in
            Traverse City, Michigan to enhance programmatic
            operations of the Great Lakes Water Research Center
            through teacher education, course development, and
            equipment acquisition;
                $250,000--Pittsburgh Digital Greenhouse in
            Pennsylvania for continuing education programs;
                $300,000--Oregon Graduate Institute in Portland,
            Oregon for the creation of Environmental Information
            Technology certificate and graduate degree programs;
                $750,000--University of Louisville in Kentucky for
            infrastructure needs to support access to postsecondary
            education for nontraditional students through its
            Metropolitan Scholars Program;
                $500,000--Northern Kentucky University to expand
            educational opportunities for nontraditional students
            through its Metropolitan Education and Training Service
            program;
                $625,000--College of Technology at Montana State
            University-Great Falls to establish a dental hygiene
            education program;
                $300,000--Cleveland State University in Ohio for
            equipment acquisition and technology enhancements that
            support innovative educational programming;
                $1,800,000--Galena School District in Alaska for a
            collaboration with the University of Southeast Alaska
            for occupation-based curriculum development and
            implementation;
                $300,000--Southern Oregon University in Ashland,
            Oregon to continue efforts to research and pilot a
            comprehensive program for preventing alcohol and drug
            abuse among college students;
                $1,000,000--Castleton State College in Castleton,
            Vermont to establish the Robert T. Stafford Center for
            the Support and Study of the Community and to establish
            an endowment for the Robert T. Stafford Center;
                $1,000,000--Southeast Pennsylvania Consortium for
            Higher Education for faculty development, teacher
            training and community outreach;
                $800,000--University of Alaska to continue the
            Alaska Distance Education Consortium;
                $900,000--College of William and Mary in
            Williamsburg, Virginia to collaborate with Colonial
            Williamsburg in the development of the Institute of
            American History and Democracy;
                $350,000--Lehigh University in Pennsylvania for the
            Integrated Product, Project, and Process Development
            initiative;
                $400,000--Lewis and Clark College in Portland,
            Oregon for the Life of the Mind education initiative
            designed to explore and celebrate the 200th
            anniversaries of the Louisiana Purchase and Lewis and
            Clark expedition;
                $750,000--Galena School District in Alaska to
            develop alternative education programs;
                $250,000--Pittsburgh Tissue Engineering Institute
            in Pennsylvania for educational programs;
                $200,000--Chippewa Valley Technical College for
            technology upgrades related to the training of health
            professionals;
                $1,275,000--Portland State University in Portland,
            Oregon for the creation of a national Tribal Government
            Institute to provide academic and professional
            development opportunities for elected tribal leaders
            and governments;
                $500,000--College of Rural Alaska-Interior
            Aleutians campus to collaborate with the Galena School
            District for an innovative technology transfer program;
                $300,000--Rutgers University in Newark, New Jersey
            for the Community Law program;
                $200,000--Minot State University for the Rural
            Communications Disability Program;
                $250,000--North Dakota State University for the
            Tech-Based Industry Traineeship program;
                $175,000--North Dakota State University to develop
            an academic program in electronic commerce;
                $800,000--Suomi College in Hancock, Michigan for
            educational operations;
                $6,000,000--University of Tennessee to establish
            the Howard Baker School of Government;
                $1,000,000--University of Charleston in West
            Virginia for collaborative efforts with the Clay Center
            for the Arts and Sciences;
                $800,000--Urban College of Boston in Massachusetts
            to support higher education programs serving low-income
            and minority students;
                $300,000--Western New Mexico University to improve
            educational access and opportunity through educational
            technology;
                $6,000,000--Pennsylvania State University to
            establish the William F. Goodling Institute for
            Research in Family Literacy and to establish an
            endowment fund for the William F. Goodling Institute
            for Research in Family Literacy;
                $1,000,000--Southern Illinois University Public
            Policy Institute in Carbondale, IL for the endowment
            for the Paul Simon Chair;
                $230,000--Florida Gulf Coast University in Ft.
            Myers, FL for curriculum development to support the
            Center for Environmental Research and Preservation and
            Campus Ecosystem Model;
                $900,000--Oklahoma State University for the
            Exercises in Hard Choices program;
                $850,000--Jackson State University in Jackson,
            Mississippi, to establish a Minority Center of
            Excellence for Math & Science Teacher Preparation;
                $300,000--Assumption College in Worcester, Mass.
            for technology infrastructure and planning for expanded
            science facilities;
                $300,000--Boston College to develop technology
            infrastructure to implement a science education
            program;
                $85,000--Loyola University, Illinois, for a program
            to provide summer research opportunities for minority
            students;
                $85,000--Pace University, White Plains, New York,
            to support a center for advanced technology;
                $90,000--Wausau Health Foundation in Wausau,
            Wisconsin to support the development and implementation
            of a cardiac nursing certification program;
                $85,000--Foothills Technical Institute, Security,
            Arkansas, to expand technical training and education
            programs for rural residents;
                $106,000--Gateway Community College in Connecticut
            for faculty technology training and technology
            equipment upgrades;
                $170,000--Florida State University in Tallahassee,
            Florida, for a distance learning program;
                $213,000--World Learning School of International
            Training, Brattleboro, Vermont, for educational
            technology programs;
                $213,000--Mercy College, Dobbs Ferry, New York, for
            multicultural, interdisciplinary curricula reform;
                $1,225,000--Association of Jesuit Colleges and
            Universities to establish the National Center for
            Competency-based Distance Learning;
                $255,000--East Los Angeles College, South Gate,
            California, for South Gate Education Center technology
            upgrades;
                $298,000--Canisius College in Buffalo, New York, to
            support education technology enhancements including the
            purchase of equipment;
                $298,000--D'Youville College, Buffalo, New York, to
            support education technology enhancements including the
            purchase of equipment;
                $298,000--Niagara University in Lewiston, New York,
            to support education technology enhancements including
            the purchase of equipment;
                $298,000--Gogebic Community College, Ironwood,
            Michigan to enhance teacher training in the use of
            technology in classroom instruction;
                $340,000--Dean College, Franklin, Massachusetts for
            the Institute for Students With Physical or Learning
            Impairments to improve instructional and support
            services for students with disabilities;
                $361,000--Lamar University in Beaumont, Texas to
            support the planning and creation of the Lamar
            Institute of Technology Center for Criminal Justice
            Education and Training;
                $383,000--Ivy Tech State College, Indianapolis,
            Indiana, for technology enhancements at the Lawrence
            Township/Ft. Harrison campus;
                $425,000--Salve Regina University in Newport, Rhode
            Island to support program and curriculum development
            associated with the Pell Center for International
            Relations and Public Policy, including the purchase of
            equipment;
                $425,000--University of San Francisco, San
            Francisco, California for equipment and program
            development at the Center for Economic Development;
                $425,000--Diablo Valley College, California, for a
            teacher mentoring program to recruit high school and
            community college students into teaching;
                $425,000--Kingsborough Community College, Brooklyn,
            New York for technology equipment and upgrades;
                $468,000--Paul Quinn College Center for Education
            and Technology to provide technology based services to
            students and the community;
                $544,000--University of North Carolina at Charlotte
            for a joint project with the Johnson C. Smith
            University, North Carolina, for the Strategies for
            Success Program to increase the number of minority
            students in graduate engineering programs;
                $595,000--Columbia University, New York, for a
            joint project with the Hostos Community College of the
            City University of New York, New York, for a distance
            learning initiative to train minority students in
            foreign policy disciplines;
                $638,000--University of Wisconsin in Milwaukee,
            Wisconsin for the Urban Educator Corps Partnership
            initiative;
                $680,000--Wisconsin Indianhead Technical College,
            New Richmond, Wisconsin, to provide technology training
            and for technology infrastructure;
                $680,000--Cambria County Area Community College,
            Johnstown, Pennsylvania, for a management information
            system;
                $723,000--Roxbury Community College, Roxbury,
            Massachusetts, for new technology equipment and
            systems;
                $723,000--Lehman College at the City University of
            New York in Bronx, New York, to support a professional
            development initiative, including the purchase of
            equipment to support these activities;
                $765,000--Carl Sandburg College Community
            Technology Center, Galesburg, Illinois to support
            expanded access to information technology and related
            services, including the purchase of equipment;
                $808,000--Alabama A & M University Research
            Institute, Huntsville, Alabama, for continuation of
            research activities and operations;
                $808,000--Tougaloo College, Tougaloo, Mississippi
            to expand science and math programs;
                $1,275,000--University of Kansas Center for
            Research, Inc. for a biodiversity information
            technology initiative;
                $1,700,000--George Meany Center for Labor Studies
            in Silver Spring, Maryland, to support program and
            curriculum development associated with a National
            Center for Training the High Skilled Workforce,
            including the purchase of equipment;
                $2,550,000--University of Arkansas in Fayetteville
            to establish academic and research programs for the
            Diane Blair Center for the Study of Southern Politics
            and Society;
                $100,000--Neumann College, in Aston, Pennsylvania,
            for curriculum design, teacher training and
            development, and technology enhancements.
        The conference agreement includes $67,000,000 for
    International Education domestic programs as proposed by the
    House instead of $62,000,000 as proposed by the Senate.
        The conference agreement includes $730,000,000 for TRIO
    instead of $760,000,000 as proposed by the House and
    $736,500,000 as proposed by the Senate.
        The conference agreement includes $295,000,000 for the
    Gaining Early Awareness and Readiness for Undergraduate
    Programs (GEAR UP) instead of $200,000,000 as proposed by the
    House and $225,000,000 as proposed by the Senate.
        The conference agreement includes $41,001,000 for Byrd
    Scholarships as proposed by the Senate instead of $39,859,000
    proposed by the House.
          The conference agreement includes $10,000,000 for the
    Javits Fellowship program in school year 2002-2003. The
    agreement also includes $31,000,000 for Graduate Assistance in
    Areas of National Need instead of $33,000,000 as proposed by
    the Senate. The agreement includes $30,000,000 for the Learning
    Anytime Anywhere Partnerships as proposed by the Senate instead
    of $10,000,000 as proposed by the House.
          The conference agreement includes $25,000,000 for Child
    Care Access Means Parents in School instead of $15,000,000 as
    proposed by the House and $10,000,000 as proposed by the
    Senate.
          The conference agreement includes $1,750,000 for the
    Underground Railroad Educational and Cultural Program as
    proposed by the Senate. The House bill did not fund this
    activity.
          The conference agreement also includes $4,000,000 for
    Thurgood Marshall Scholarships and $1,000,000 for Olympic
    Scholarships. Neither the House nor the Senate funded these
    activities.
          The conferees recognize efforts of the University of
    South Carolina's College of Education to develop and implement
    a teacher training/teacher exchange program with their
    counterparts in Brazil, Denmark, Hungary, and Thailand. The
    conferees encourage the Secretary to support such efforts that
    link postsecondary institutions on an international basis to
    promote and improve teacher training and development
    activities.

                               HOWARD UNIVERSITY

          The conference agreement includes $232,474,000 for Howard
    University instead of $226,474,000 as proposed by the House and
    $224,000,000 as proposed by the Senate.

             COLLEGE HOUSING AND ACADEMIC FACILITIES LOANS (CHAFL)

          The conference agreement includes $762,000 for the
    College Housing and Academic Facilities Loans administration
    instead of $737,000 as proposed by both the House and the
    Senate.

     HISTORICALLY BLACK COLLEGE AND UNIVERSITY CAPITAL FINANCING, PROGRAM
                                    ACCOUNT

          The conference agreement includes $208,000 for the
    Historically Black College and University Capital Financing
    Program Account as proposed by the Senate instead of $207,000
    as proposed by the House.

                 EDUCATION RESEARCH, STATISTICS AND IMPROVEMENT

          The conference agreement includes $732,721,000 for
    Education Research, Statistics and Improvement instead of the
    $494,367,000 as proposed by the House and $506,519,000 as
    proposed by the Senate.
          The conferees provide $120,567,000 for research instead
    of $103,567,000 as proposed by the House and $113,567,000 as
    proposed by the Senate. Within this total, $20,000,000 is
    included for continuation of the interagency research
    initiative and $7,000,000 is included to support a research
    initiative on improving schooling for language-minority
    students. This program would support an interagency effort
    between the Department of Education and the National Institute
    of Child Health and Human Development (NICHD) to identify
    critical factors in the development of English-language
    literacy among students whose primary language is Spanish.
          The conferees provide $80,000,000 for statistics instead
    of $68,000,000 as proposed by the House and the Senate. Within
    the increase provided, $2,000,000 is for a National Adult
    Literacy Survey; $6,400,000 is for the Birth Cohort of the
    Early Childhood Longitudinal Study to allow the Department to
    follow cognitive, physical, and social development of young
    children; $1,000,000 is for the Adult Literacy and Life Skills
    study, an international comparative study of American workforce
    literacy skills in the context of five other nations; and
    $2,600,000 is for the Faculty Salary and Staff Surveys which
    form part of the Institutional Postsecondary Educational Data
    System and are used by many organizations to conduct policy
    analysis on institutions of higher education.
          The conference agreement includes $65,000,000 for
    regional educational labs as proposed by both the House and the
    Senate. Consistent with House report 104-537, it is the intent
    of the conferees that funds provided to the regional
    educational laboratories shall not be conditioned on meeting
    performance standards that compromise the priorities of the
    regional governing boards of each of the individual
    laboratories. Further, the conferees intend that regional
    educational laboratory funds shall be obligated and distributed
    on the same basis as the fiscal year 2000 allocations not later
    than January 31, 2001.
    Fund for the Improvement of Education
          For the fund for the improvement of education (FIE), the
    conference agreement includes $349,354,000 instead of the
    $145,000,000 as proposed by the House and $142,152,000 as
    proposed by the Senate.
          The conference agreement includes $50,000,000 for
    comprehensive school reform grants to school districts.
          The conference agreement includes $30,000,000 to be used
    for the Elementary School Counseling Demonstration Program. The
    agreement also includes $5,000,000 to provide grants to enable
    schools to provide physical education and improve physical
    fitness and $3,000,000 for activities to promote consumer,
    economic, and personal finance education such as saving,
    investing and entrepreneurial education.
          The conference agreement includes $5,000,000 to make
    awards under section 10101 of the Elementary and Secondary
    Education Act for a dropout prevention demonstration project.
    These awards should be made to implement innovative model
    programs that undertake activities to provide support,
    enrichment and motivation to students at risk of dropping out
    or that undertake activities to raise standards and
    expectations for disadvantaged students traditionally
    underserved in schools in order to ensure school completion.
    The Secretary will make awards to States or local educational
    agencies, working in collaboration with institutions of higher
    education or other public and private agencies, organizations
    or institutions. Priority should be given to applicants serving
    the communities with the highest dropout rates.
          The conferees recognize the need to promote the study of
    American history in our nation's schools, and therefore, have
    also included $50,000,000 for a new demonstration program
    focusing on the instruction of American history in elementary
    and secondary education. Under this program, the Secretary of
    Education will award grants to local educational agencies
    (LEAs), and in turn, the LEAs will make awards to schools that
    are teaching American history as a separate subject within
    school curricula (not as a part of a social studies course).
    Grant awards are designed to augment the quality of American
    history instruction and to provide professional development
    activities and teacher education in the area of American
    history.
          The conference agreement includes $5,000,000 for high
    school reform state grants. Through this State grant program,
    the Secretary of Education shall award three year grants,
    through a peer review process, to State educational agencies.
    State educational agencies will make available not less than 90
    percent of the funds, on a competitive basis, to secondary
    schools or consortia thereof to support programs, activities,
    classes, and other services designed to assist secondary school
    students in attaining State-established challenging academic
    and technical skills proficiencies. Grants awarded to secondary
    schools or consortia shall be used to carry out the following
    activities: integration of academics with technical skills
    courses; establishment of learning and technical skills centers
    within secondary schools; and programs that support and
    implement innovative strategies such as independent study,
    school-based enterprises, and project-based learning.
          The conference agreement includes funding under this
    heading for an award to maintain and enhance the National
    Teacher Recruitment Clearinghouse and for associated outreach
    and technical assistance activities.
          The conferees are aware of a research-based program that
    assesses a student's cognitive strengths and perceptual
    abilities and designs an individualized plan of strengthening
    them which has promise to improve students' reading levels,
    grades, test scores and behavior, thereby reducing referrals to
    special education.
          Within the amounts provided for the Fund for the
    Improvement of Education, the conference agreement includes
    $139,624,000 for the following:
                $921,000--Virginia Living Museum, Newport News, VA
            for an educational program;
                $461,000--Giant Steps Illinois in Westmont, IL for
            educational services;
                $1,000,000--San Diego Unified School District in CA
            for ``The Blueprint for Student Success in a Standards-
            Based System'';
                $544,000--Utica City School District, Utica, New
            York for an English as a Second Language Program;
                $9,000--Jefferson Consolidated School District,
            Jefferson New York for a summer school program;
                $461,000--Texas A&M International University,
            Laredo, TX for the Reading Research Center;
                $184,000--Riverside Community College District,
            Riverside, CA for general planning for a Center for
            Primary Education;
                $547,000--Riverside Community College District,
            Riverside, CA for curriculum development and related
            costs for the School for the Arts;
                $343,000--Louisiana Tech University, Ruston, LA for
            ``Project Life'';
                $686,000--WestEd Eisenhower Regional Consortium for
            Science and Mathematics, San Francisco, CA for 24
            Challenge and Jumping Levels Math;
                $507,000--George Mason University, Fairfax VA for
            Center for Families and Schools programming;
                $275,000--Fairfax County Public Schools, Fairfax,
            VA for the Teacher Leadership 2000 project in Annandale
            Terrace Elementary School, Belvedere Elementary School,
            Glen Forest Elementary School, Graham Road Elementary
            School, and Parklawn Elementary School;
                $841,000--Institute for Student Achievement, New
            York, NY for establishment of programs at Holmes Middle
            School, Annandale High School and Falls Church High
            School in Virginia;
                $929,000--Yosemite National Institute, Sausalito,
            CA for science-based environmental education;
                $1,283,000--Indian River Community College, Fort
            Pierce, FL for the Living Science Interactive Learning
            Model;
                $23,000--United Activities Unlimited Inc., Staten
            Island, NY for tutoring and homework assistance;
                $28,000--Foundation for the Advancement of Autistic
            Persons in Staten Island, NY for Eden II teacher
            retention program;
                $69,000--Community School District 31, Staten
            Island, NY for textbook and library book purchases;
                $276,000--New Jersey Historical Society for
            ``Educating New Jersey's Children in the Past'';
                $691,000--Mote Marine Laboratory, Sarasota, FL for
            technology-based education programs;
                $921,000--Space Education Initiatives, Inc., Green
            Bay, WI for professional development and technology
            programming;
                $3,430,000--The Board of Education of the City of
            Chicago/Chicago Public Schools, National Teaching
            Training Academy, Chicago IL for the Consortium for the
            Advancement of Teaching;
                $230,000--Fox Valley Illinois YMCA for the Teen
            Agenda Program;
                $115,000--L.E.A.D.E.R.S. Program, Rochester Hills,
            MI for teen leadership, character development, and role
            modeling program;
                $806,000--Clark State Community College,
            Springfield OH and Cuyahoga Community College,
            Cleveland, OH for the Early Childhood Literacy Project;
                $369,000--Kids Voting USA, Tempe, AZ for
            educational programming;
                $921,000--Rockford Public Schools--District 205,
            Rockford, IL for strengthening of a magnet school
            program;
                $461,000--Carthage Central School District,
            Carthage, NY for an academic intervention plan;
                $1,799,000--Reading Together USA Program at the
            University of North Carolina at Greensboro for tutoring
            program expansion;
                $691,000--National Center for Family Literacy,
            Louisville, KY for family literacy practitioner
            training;
                $461,000--Center Unified School District, Antelope,
            CA for training for literacy professionals;
                $497,000--San Juan Unified School District,
            Carmichael, CA for a comprehensive literacy program;
                $921,000--San Joaquin Council of Governments,
            Stockton, CA for the San Joaquin County Reads Program;
                $880,000--George C. Marshall Foundation, Lexington,
            VA for character development through community service;
                $415,000--National Crime Prevention Council,
            Washington DC for continuation of the National Youth
            Safety Corps;
                $921,000--Adler Planetarium and Astronomy Museum,
            Chicago, IL for Cyber Space Technology Learning Center;
                $184,000--Northwestern University, Evanston, IL
            Institute for Policy Research for the School Youth
            Development Program;
                $921,000--North Central Regional Educational
            Laboratory for the North Central Alliance, Oak Brook,
            IL for Improving Professional Development;
                $276,000--Midwest Young Artists, Highwood, IL for
            music education programming;
                $230,000--Shimer College, Waukegan, IL for the
            Graduate Program in the Foundations of Science;
                $92,000--Aptakisic Tripp Community Consolidated
            School District #102 in IL for curriculum development;
                $1,843,000--Lake County Forest Preserve District in
            Libertyville, IL for educational center programming;
                $345,000--Greater Columbus Chamber of Commerce,
            Columbus OH for a Career Academy Program;
                $111,000--Mariposa County Unified School District,
            Mariposa California for a teacher initiative;
                $350,000--Center for Advanced Research and
            Technology, Clovis CA for educational programming;
                $921,000--Media Arts Center, Paintsville, KY for
            equipment and educational program support;
                $921,000--University of West Florida, Pensacola, FL
            for enhancing teacher performance in schools;
                $276,000--Southern Illinois University,
            Edwardsville, IL for an urban quality teacher
            initiative;
                $921,000--Wichita Public Schools, Wichita, KS for
            special education teaching reforms;
                $46,000--Beaver Local School District, Lisbon, OH
            for educational programming;
                $46,000--Belmont-Harrison Vocational School
            District, St. Clairsville, OH for educational
            programming;
                $46,000--Brooke High School, Wellsburg, WV for
            educational programming;
                $46,000--Bridgeport Exempted Village School
            District, Bridgeport, OH for educational programming;
                $46,000--Buckeye Local School District, Rayland, OH
            for educational programming;
                $46,000--Columbiana County Career Center, Lisbon,
            OH for educational programming;
                $46,000--East Liverpool School District, East
            Liverpool, OH for educational programming;
                $46,000--Edison Local School District,
            Hammondsville, OH for educational programming;
                $46,000--Hancock County Schools, New Cumberland, WV
            for educational programming;
                $46,000--John D. Rockefeller Vocational Technical
            Center, New Cumberland, WV for educational programming;
                $46,000--Indian Creek School District,
            Wintersville, OH for educational programming;
                $46,000--Jefferson County Joint Vocational School,
            Bloomingdale, OH for educational programming;
                $46,000--Martins Ferry School District, Martins
            Ferry, OH for educational programming;
                $46,000--Midland School District, Midland, PA for
            educational programming;
                $46,000--Southern Local School District,
            Salineville, OH for educational programming;
                $46,000--South Side School District, Hookstown, PA
            for educational programming;
                $46,000--Steubenville City Schools, Steubenville,
            OH for educational programming;
                $46,000--Toronto School District, Toronto, OH for
            educational programming;
                $46,000--Wellsville Local School District,
            Wellsville, OH for educational programming;
                $46,000--Wheeling Park High School, Wheeling, WV
            for educational programming;
                $921,000--Girard Community Committee Inc., for
            development of the Girard Multigenerational Center in
            Girard, Ohio;
                $369,000--St. Tammany Parish, Louisiana School
            Board, Covington, LA for teacher technology training;
                $92,000--Orleans Parish, LA District Attorney's
            Office, New Orleans, LA for school based drug awareness
            education and prevention program;
                $200,000--The ReadNet Foundation, New York, NY for
            innovative learning solutions for the mentally
            handicapped;
                $480,000--Technological Research and Development
            Authority, Titusville, FL for the Mathematics, Science
            & Technology Teacher Education Program;
                $46,000--Kentucky Sheriff's Boys and Girls Club in
            Gilbertsville KY for educational and outreach efforts
            for children;
                $18,000--Oscar Cross Boys and Girls Club in Paducah
            KY for technology improvements;
                $1,382,000--Paducah Community College for the
            Challenger Learning Center, Paducah, KY for hands-on
            science, mathematics and technology education;
                $461,000--Mississippi Writing/Thinking Institute,
            Mississippi State University, Starkville, MS for
            improving teaching and writing in K-12 schools
            throughout the state;
                $1,176,000--University of New Mexico, Albuquerque,
            NM for the Math and Science Teacher Academy;
                $871,000--Florida Department of Education for
            School Net;
                $553,000--Galena School District, Galena Alaska for
            a comprehensive vocational program;
                $230,000--California Drug Consultants, Moreno
            Valley CA for educational learning aids and equipment
            for disabled and ill children in the Riverside County
            region;
                $460,000--Daemen College in Amherst, NY for
            staffing costs, supplies, equipment and computer needs
            for the Center for Achievement in Science;
                $900,000--New Mexico Department of Education to
            continue to fund student performance plans at 12
            schools and for a model school drop-out prevention
            program;
                $500,000--Western Village Academy in Oklahoma City,
            Oklahoma in partnership with Integris Health, for
            literacy programs and other educational enrichment
            activities;
                $800,000--National Science Center Foundation in
            Augusta, Georgia to continue to develop computer based
            software Exit Exam Review Materials for ESOL students;
                $9,000,000--Project GRAD-USA Inc. in Houston, Texas
            to support expansion of the successful school reform
            program, Project GRAD;
                $800,000--State of Alaska to continue reading
            literacy programs for high school students;
                $300,000--Providence Public School District in
            Providence, Rhode Island for comprehensive literacy
            training to ensure that all students are reading at
            grade level;
                $2,000,000--Alaska Initiative for Community
            Engagement to improve academic achievement of students
            and involve them in their own communities;
                $500,000--Semos Unlimited, Inc., in New Mexico to
            complete a comprehensive initiative for providing
            bilingual educational and literacy programs;
                $850,000--Maine Center for Educational Services to
            implement the Schools & Technology for Assessment &
            Reflection program, a student performance data system
            for planning and instructional purposes;
                $500,000--American Village in Montevallo, Alabama
            for an innovative civics education initiative that
            provides students with a better understanding of the
            Constitution and foundation of American self-
            government;
                $500,000--Vermont Educational Leadership Alliance
            in Montpelier, Vermont to address the shortage of
            school leaders;
                $600,000--University of Northern Iowa to continue
            developing a model demonstration program for early
            childhood education of all students;
                $700,000--Utah State Office of Education to assist
            small and geographically isolated schools through the
            Necessarily Existent Small Schools Program;
                $2,500,000--State of Alaska to develop innovative
            teacher recruitment and retention programs;
                $400,000--Albuquerque Public School System in New
            Mexico for its Magnet High School for Math, Science and
            Technology;
                $400,000--University of Oklahoma's Institute for
            Practical Robotics in Oklahoma City, Oklahoma to
            provide hands on experiences in robotics by developing
            curricula and teacher training programs to integrate
            robotics and computer engineering with traditional math
            and science education;
                $300,000--Salt Lake Organizing Committee or to a
            governmental agency or not-for profit organization
            designated by the Salt Lake City Organizing Committee
            for a national arts and education model initiative for
            the Winter Olympic and Paralympic Games of 2002;
                $100,000--Museums & Universities Supporting
            Educational Enrichment in Philadelphia, Pennsylvania
            for teacher training and technology- and museum-based
            curriculum development;
                $105,000--Wilderness Technology Alliance in
            Bellevue, Washington for educational reform activities
            designed as part of its statewide demonstration
            program;
                $2,500,000--Sheldon-Jackson College Center for Life
            Long Learning for teacher training and to address the
            shortage of teachers in remote Alaskan villages;
                $1,000,000--Delta State University to improve
            access to and the quality of education in the
            Mississippi Delta area of the State of Mississippi;
                $250,000--Washington and Jefferson College Center
            for Excellence in Teaching and Learning in Pennsylvania
            for a comprehensive education initiative;
                $75,000--Northwest Missouri Regional Council of
            Government's Access 2000 program for educational
            support services including career planning, leadership
            development and personal skill evaluation and
            improvement;
                $1,800,000--University of Missouri-St. Louis for
            the Teacher Workforce Replenishment Program;
                $800,000--University of Rhode Island for the 2001
            World Scholar Athlete Games;
                $50,000--KidsPeace in Orefield, Pennsylvania for
            equipment acquisition and educational services to
            support the integration of health and educational
            programs developed for at risk youth;
                $250,000--Iowa State University Center for
            Excellence in Science and Mathematics Education to
            collaborate with local school districts and other
            partners to increase the quality of mathematics and
            science technology education for K-12 grade students;
                $400,000--Council of Chief State School Officers
            for professional development and recognition activities
            related to the Christa McAuliffe Foundation grant
            program;
                $375,000--Madison Station Elementary School in
            Madison, Mississippi to begin a replicable, school-
            wide, arts based curriculum;
                $250,000--Southeast Kansas Education Service Center
            in Girard, KS to expand and replicate state-wide a
            school-based mentoring effort that connects young
            people from grades K-12 with adult volunteers;
                $750,000--Keystone Central School District in
            Pennsylvania, in collaboration with Lock Haven
            University, to develop a model alternative school;
                $1,800,000--Vermont Department of Education to
            carry out section 1002(f) of the Elementary and
            Secondary Education Act of 1965;
                $100,000--Freedom Foundation at Valley Forge to
            develop programs integrating citizenship education,
            leadership development and literacy programs;
                $850,000--California School of Professional
            Psychology, in cooperation with school districts in the
            San Diego, Los Angeles, San Francisco and Fresno
            metropolitan areas for model teacher training programs;
                $200,000--Regional Performing Arts Center in
            Philadelphia, Pennsylvania for equipment acquisition in
            support of distance learning programs arranged with
            area schools;
                $250,000--CAPE/PETE Net in Bethlehem, Pennsylvania
            for distance learning technologies and educator
            training to improve educational outcomes;
                $400,000--National Aviation Hall of Fame in Dayton,
            Ohio for curriculum development, technology upgrades
            and programmatic improvements to educational programs
            offered to students;
                $290,000--Sunnyside School District in Washington
            for a reading literacy program;
                $250,000--California Institute of the Arts in
            Valencia, California for an urban distance learning
            program;
                $250,000--Philadelphia Pops educational outreach
            program, Jazz in the Schools;
                $500,000--University of Northern Iowa Center for
            Mathematics and Science Education to improve the
            teaching of mathematics and science;
                $850,000--Southwest Texas State University Center
            for School Improvement to develop innovative programs
            to address specific K-12 challenges facing teachers and
            students;
                $850,000--University of Montana in Missoula,
            Montana to facilitate a community-based statewide
            curriculum aimed at preventing violence in schools;
                $20,000--Education, Social and Public Services
            Association in Seattle, Washington to develop targeted
            communications related to Washington learning
            standards;
                $850,000--ARC of East Central Iowa for a
            comprehensive center in Cedar Rapids designed to meet
            the learning, medical and day care needs of children
            and adolescents with disabilities;
                $250,000--American Visionary Art Museum in
            Baltimore, Maryland for educational and outreach
            programs targeted to underserved communities;
                $250,000--Philadelphia Zoo in Philadelphia,
            Pennsylvania to create, develop and implement a high
            school science learning program;
                $2,500,000--Big Brothers/Big Sisters of America to
            strengthen and expand its school based mentoring
            program;
                $200,000--National Foundation for Teaching
            Entrepreneurship for expansion of basic academic skill
            development and entrepreneurship training programs for
            students in low income areas;
                $250,000--Opera Company of Philadelphia for an
            integrated arts education program;
                $9,000,000--Iowa Department of Education to
            continue a demonstration of public school facilities;
                $750,000--Des Moines Independent School District in
            Iowa to support the Smoother Sailing program;
                $1,000,000--Iowa Student Aid Commission for teacher
            training, recruitment and support;
                $500,000--Iowa Child Institute located in Des
            Moines, IA for planning and development of an
            innovative teacher education and training center;
                $100,000--Cobbs Creek Community Environmental
            Education Center in Philadelphia, Pennsylvania for
            teacher training, research and equipment acquisition in
            support of environmental education programs;
                $400,000--Southeastern Louisiana University to
            utilize distance learning for the improvement of
            teacher training;
                $150,000--Rock School of Pennsylvania Ballet for
            innovative arts education through after school and
            summer programs;
                $250,000--Flathead Valley Community College Montana
            TREK Center to provide rural educators with
            professional development opportunities through distance
            learning technologies;
                $500,000--Hofstra University for a demonstration
            school that integrates mathematics, science, technology
            and literacy studies with the arts and cultural
            studies;
                $250,000--CityVest, a non-profit development
            corporation in Pennsylvania, to collaborate with area
            school districts in providing alternative education
            programs;
                $300,000--YMCA of America to expand drop out
            prevention, mentoring and teen pregnancy prevention
            programs serving at-risk teens in Dallas, San Antonio
            and Houston;
                $250,000--American Film Institute for activities
            supporting a media literacy pilot project undertaken in
            coordination with the Los Angeles Unified School
            District;
                $2,000,000--Reach Out and Read program to expand
            literacy and health awareness for at-risk families;
                $850,000--South Carolina Association of School
            Administrators to facilitate and distribute the
            methodology and pedagogy utilized by Blue Ribbon
            Schools;
                $50,000--Stillman College, Zelpha Wells Cultural
            Education Center to continue to provide music education
            and music instruction to minority and disadvantaged
            youth;
                $650,000--Georgia Project, Inc. in Dalton, Georgia
            to assimilate Hispanic immigrant children into
            mainstream curriculum;
                $100,000--West Virginia University in Morgantown
            for school safety research;
                $1,000,000--Concord College in West Virginia for
            technical skills training of new teachers;
                $900,000--New York Historical Society to
            collaborate with area high schools in developing a
            technology-based program designed to enhance teaching
            and learning;
                $400,000--Child and Family Development Education
            Center in Albuquerque, New Mexico to better prepare
            students for school success;
                $25,000--Freedom Theatre in Philadelphia,
            Pennsylvania for performing arts training and mentoring
            programs for area youth;
                $401,000--The National Mentoring Partnership in
            Washington DC for establishing the National E-Mentoring
            Clearinghouse;
                $900,000--Florida Institute of Education in
            Tallahassee, Florida for community-based early learning
            and professional development hubs;
                $4,000,000--Carnegie Hall in New York, New York to
            integrate distance learning and educational technology
            with music education programs through the Isaac Stern
            Legacy project;
                $200,000--Hispanic Education and Media Group for a
            Latino-Chicano high school dropout prevention program
            in San Jose, CA;
                $276,000--The Academy of Natural Sciences in
            Philadelphia, PA for continuation of the Science
            Enrichment Expansion Curriculum program;
                $2,550,000--University of Notre Dame, Indiana, for
            the Institute for Educational Initiatives research
            center for the comparative analysis of best practices
            in public and private elementary and secondary schools;
                $1,700,000--Challenger Learning Center of Northwest
            Indiana, Inc., Hammond, Indiana, to expand science
            education and teacher training programs;
                $1,275,000--For demonstration and evaluation of
            ``one-to-one'' computing in high-need school districts
            in Bridgeport and New Haven, Connecticut; San Pablo,
            Fairfield, Bay Point, and East Menlo Park, California;
            and Searchlight and McDermitt, Nevada;
                $1,233,000--University of Maine, Orono, Maine, for
            the development of curriculum for math and science
            teacher education;
                $863,000--An Achievable Dream, Newport News,
            Virginia to improve academic performance of at-risk
            youth;
                $1,250,000--Helen Keller Worldwide to expand the
            ChildSight Vision Screening Program and provide
            eyeglasses to additional children whose educational
            performance may be hindered because of poor vision;
                $1,020,000--Sacramento City Unified School
            District, California to establish the California Home
            Visiting Center to train teachers and parents in order
            to improve student learning;
                $935,000--Thornton Township High School District
            205 to support the Thornton Township Teaching and
            Learning Partnership teacher training program;
                $850,000--Early Reading Success Institute in
            Connecticut to broaden the training of professionals in
            best practices in the delivery of reading instruction;
                $850,000--Olympic Park Institute in Olympic
            National Park, Washington, to expand science education
            programs.;
                $850,000--The GRAMMY Foundation, Santa Monica,
            California, for music education programs;
                $850,000--The Learning Collaborative Inc., Milford,
            Connecticut, for the ``Pebbles Project'' to demonstrate
            innovative technology to deliver educational services
            to children medically unable to attend school;
                $744,000--Yale University Child Study Center, New
            Haven, Connecticut, for a child-centered education
            pilot program;
                $723,000--Babyland Family Services, Newark, New
            Jersey for technology training and extended learning
            opportunities for students, parents and teachers;
                $723,000--Chicago Public School System, Illinois,
            for teacher professional development and university
            partnerships to support implementation of new magnet
            school programs;
                $723,000--DeKalb County School System in Georgia
            for a comprehensive school violence prevention
            initiative;
                $723,000--East Hartford Public Schools,
            Connecticut, to support program and professional
            development associated with the international
            baccalaureate program, including equipment;
                $723,000--Sam Houston University, Huntsville, Texas
            to establish a technical assistance center for after-
            school programs;
                $723,000--Texas A & M University, Corpus Christi,
            Texas for services to at-risk bilingual families and
            for a middle school math and science center at the
            Early Childhood Development Center;
                $723,000--University of Illinois, Chicago, Illinois
            for the Project Impact Hispanic education initiative;
                $638,000--Miami-Dade County Public Schools, Miami,
            Florida to establish career academies;
                $638,000--University of Missouri, St. Louis, School
            of Education, for the Urban Educator Corps Partnership
            initiative;
                $595,000--Rutgers University Law School to support
            a scholarship fund, public interest activities, and its
            work with the LEAP Academy Charter School, including
            the purchase of books and equipment to support these
            activities;
                $700,000--Wisconsin Educational Partnership
            Initiative in Chippewa Falls, Wisconsin for a
            professional development initiative;
                $690,000--Washburn Public Schools, Washburn,
            Wisconsin, for a pilot project designed to provide 6th
            grade students and school faculty with access to
            technology, including laptop computers, software, and
            home internet access, and to provide expert curriculum
            development assistance to school faculty members;
                $510,000--Dillard University, New Orleans,
            Louisiana, to expand the William L. Gilbert Academy
            pre-college program for high achieving low-income high
            school students;
                $510,000--Educational Performances Foundation CPI,
            Boston, Massachusetts, for the continued development of
            the music educational program called ``From the Top'';
                $510,000--West Windsor-Plainsboro Regional School
            District in Mercer County, New Jersey, for the
            ``E=mc2'' teacher training project;
                $489,000--University of Illinois at Chicago,
            Illinois, for a joint project with the University of
            New Orleans, Louisiana, for the Great Cities'
            University Coalition Urban Educators Corps teacher
            training partnership;
                $442,000--Maryland State Department of Education to
            support the Maryland Educational Opportunities Summer
            Program;
                $425,000--Alameda County Social Services Agency,
            Oakland, California, to support an education and
            training program for high school students;
                $425,000--Clark County School District, Las Vegas,
            Nevada for a comprehensive bilingual education program;
                $425,000--Cleveland Botanical Garden, Cleveland,
            Ohio, to expand educational curriculum, outreach and
            teacher training programs;
                $425,000--Detroit Area Pre-College Engineering
            Program, Inc., Detroit, Michigan, for engineering,
            science and math instructional, Saturday and summer
            programs, teacher training, and parental engagement
            activities;
                $425,000--The Milton Eisenhower Foundation,
            Washington, DC for a full-service community school
            demonstration project in up to four locations;
                $425,000--Virginia Marine Science Museum Science
            Camp in Virginia Beach, Virginia to expand educational
            programs and outreach to schools;
                $361,000--Oakland Unified School District,
            California, for a teacher professional development
            initiative to increase student achievement in literacy,
            math and science;
                $340,000--Council of Chief State School Officers to
            support the Arts Education Partnership to improve the
            awareness and quality of arts in education;
                $340,000--Indiana University, Bloomington, Indiana,
            for the Project TEAM minority recruitment program;
                $340,000--Smithsonian Institution for a jazz music
            education program in Washington, DC;
                $340,000--Wildlife Conservation Society, Bronx New
            York, to develop a distance learning education project
            for after school programs;
                $298,000--Chicago Public School System, Illinois,
            to provide vision screening, eye exams, and glasses for
            low-income students;
                $276,000--Chicago Public School System, Illinois,
            to expand the Chicago Math, Science and Technology
            Academies;
                $266,000--City of Houston Public Library, Houston,
            Texas for the ASPIRE after school program;
                $213,000--Future Leaders of America, Inc., Oxnard,
            California, to provide leadership training and
            educational experiences to talented youth;
                $213,000--Institute for Student Achievement,
            Manhasset, New York to improve student learning
            outcomes without social promotion;
                $191,000--Bremen Community High School District
            228, in Midlothian, Illinois, for a summer transition
            program for incoming freshmen students;
                $191,000--Center for Community Transformation in
            Chicago, Illinois to support student fellowships and
            ongoing secular educational activities in community
            leadership and transformation, including curriculum
            development;
                $170,000--``ScienceClass in a Box'' educational
            system, Hoboken, New Jersey, to enhance science and
            math education in disadvantaged school districts;
                $175,000--Merrill Area Public Schools in Merrill,
            Wisconsin, to support activities designed to improve
            educational outcomes for at-risk students;
                $149,000--Great Lakes Science Center, Cleveland,
            Ohio, to establish interactive biomedical exhibitions
            and educational programs to increase minority awareness
            of health careers;
                $128,000--Centro Latino de Educacion Popular in Los
            Angeles, California, program to provide literacy
            training for Hispanic children and adults;
                $128,000--City of Eugene, Oregon, for the
            development of educational materials for a Wetland
            Environmental Education Center;
                $94,000--Dallas Urban League, Inc., Dallas, Texas,
            to expand technology and literacy training for low-
            income youth;
                $85,000--Los Angeles Free Net, Encino, California,
            to provide free internet access to schools and
            libraries;
                $85,000--Pasadena Independent School District,
            Pasadena, Texas, to support an early learning program
            focused on reading, including to purchase equipment and
            supplies;
                $50,000--Stevens Point Area School District,
            Wisconsin for an initiative to improve achievement
            among high school students;
                $43,000--Santa Barbara County Education Office,
            California for school violence prevention resource
            kits;
                $43,000--St. Vincent's Family Service Center,
            Kansas City, Missouri, to implement a violence
            prevention curriculum initiative;
                $50,000--Merrill Area Public Schools in Merrill,
            Wisconsin, for an initiative to improve achievement
            among high school students;
                $50,000--Superior School District, Superior,
            Wisconsin for an initiative to improve achievement
            among high school students;
                $38,000--T.R. Hoover Community Development
            Corporation in Dallas, Texas, to provide technology
            training to children and their families in South
            Dallas;
                $400,000--Chester Upland School District, Chester,
            PA, for recruitment, preparation and retention of
            teachers and teacher candidates;
                $100,000--Family Communications, Inc., in
            Pittsburgh, PA, for the non-profit's Safe Havens
            Training Project which is designed to train school
            personnel in preventing and responding to acts of
            violence;
                $250,000--Northwest Regional Educational Laboratory
            in Portland, OR for a reading tutor training program;
            and
                $230,000--University of Pennsylvania Health System
            in Philadelphia, PA for development of a model high
            school curriculum on genetics and ethics.
          For International Education, the conference agreement
    includes $10,000,000 as proposed by the Senate, instead of
    $7,000,000 as proposed by the House. The conferees support
    strengthening and expanding international education exchange
    programs to more students and teachers, expanding the early
    elementary school program begun last year in Bosnia, and
    pairing more American states with countries in the former
    Soviet Union and Central and Eastern Europe. Within the total,
    $1,200,000 is included for the civic education program in
    Northern Ireland and the Republic of Ireland and efforts in
    emerging democracies in developing countries.
          The conferees recognize the efforts of Strategies to
    Accelerate Reading Success (STARS) in Las Vegas, NV where
    students in low performing schools have shown marked
    improvements in their reading and listening comprehension
    skills. The conferees are also aware of the Great Films Project
    Co., Inc. of New York and their ability to produce a
    documentary that will provide an objective assessment of the
    impact of Federal education programs on the education of our
    Nation's youth.
          The conferees encourage the Secretary to consider funding
    a study by the National Research Council of the National
    Academy of Sciences which provides a balanced evaluation of the
    consequences of high stakes testing, using data from a
    representative sample of states and local educational agencies.
    The evaluation may examine the consequences for students in
    general, minority students and students with limited English
    proficiency related to academic achievement, dropout and
    retention rates, quality of instruction, and the extent to
    which parents are informed about assessment results and
    consequences.

                            departmental management

          The conference agreement includes $525,684,000 for
    Departmental Management instead of $488,134,000 as proposed by
    the House and $504,551,000 as proposed by the Senate. Within
    this amount, the agreement provides $76,000,000 for the Office
    of Civil Rights instead of $71,200,000 as proposed by the House
    and $73,224,000 as proposed by the Senate. The agreement also
    includes $36,500,000 for the Office of Inspector General
    instead of $34,000,000 as proposed by the House and $35,456,000
    as proposed by the Senate. The agreement includes $510,000 to
    continue the Inspector General audit of the Department's
    Student Financial Assistance financial statements.
          The conferees are supportive of the HEATH Clearinghouse
    which provides technical assistance and support services to
    disabled students and institutions of higher education. In the
    last five years, the number of requests for information has
    increased from 30,000 per year to more than 75,000 per year.
    The conferees encourage the Secretary to continue to support
    the clearinghouse.

                               General Provisions

                               transfer authority

          The conference agreement includes language to provide
    general transfer authority for the Departments and agencies in
    this bill except for the Department of Education (ED). This
    authority was first provided in fiscal year 1996 with the
    understanding that the flexibility it provides can only be
    carried out when proper financial management controls and
    systems are in place. ED did not receive an unqualified opinion
    on its financial statements for either fiscal year 1998 or
    1999. The conferees recognize that ED is working to rectify
    problems that have been identified, but for fiscal year 2001
    the conferees require a letter of reprogramming to the House
    and Senate Appropriation Committees and a written response from
    the Committees before any transfer of funds can be made.
          The conferees reiterate that it is not the purpose of the
    transfer authority to provide funding for new policy proposals
    that can, and should, be included in subsequent budget
    proposals. Absent the need to respond to emergencies or
    unforeseen circumstances, this authority cannot be used simply
    to increase funding for programs, projects or activities
    because of disagreements over the funding level or the
    difficulty or inconvenience with operating levels set by the
    Congress.

                               TITLE I--TARGETING

          The conference agreement includes language proposed by
    the Senate directing the Comptroller General to evaluate
    targeting within the title I program. The House bill contained
    no similar provisions.

                National Assessment Governing Board Date Change

          The conference agreement includes a provision that makes
    the terms of service for National Assessment Governing Board
    members four years.

                      Recalculation of Cohort Default Rate

          The conference agreement includes language changing the
    process for appealing cohort default rate calculations so that
    a school that misses the appeal deadline may retain eligibility
    if a clear mistake was made in the data used to calculate the
    rate.

                 compensation parity for auditors and examiners

          The conference agreement includes an amendment to the
    Higher Education Act of 1965 relating to compensation parity
    for auditors and examiners.

                                tribal colleges

          The conference agreement includes an amendment to the
    Carl D. Perkins Vocational and Technical Education Act of 1998
    relating to tribally controlled postsecondary vocational and
    technical institutions.

                      security interests in student loans

          The conference agreement includes an amendment to the
    Higher Education Act of 1965 relating to perfection of security
    interests in student loans.

                  historically black colleges and universities

          The conference agreement includes an amendment to the
    Higher Education Act of 1965 relating to default rates.

                          national constitution center

          The conference agreement includes a provision which
    provides $10,000,000 to the Secretary of Education to be
    transferred to the Secretary of the Interior for an award to
    the National Constitution Center to continue activities
    authorized by P.L. 100-433.

                              character education

          The conference agreement includes a modification to the
    Safe and Drug-Free Schools Act for the development and
    implementation of character education programs.

                                 waiver review

          The conference agreement includes a provision that
    directs the Secretary to review the nursing program operated by
    Graceland University in Iowa and specifies that the Secretary
    may exercise waiver authority relating to this program.

                 leveraging educational assistance partnerships

          The conference agreement includes an amendment to the
    Higher Education Act of 1965 clarifying that funds provided
    under the Special Leveraging Educational Assistance Partnership
    Program may not be used for administrative purposes and that
    matching funds must come from new sources in order to leverage
    more state funding.

                            student support services

          The conference agreement includes an amendment to Part A
    of title IV of the Higher Education Act of 1965 which allows
    grantees receiving funding under the Student Support Services
    program within TRIO to use part of these funds for direct grant
    aid to needy students. A grant provided under this provision
    may not exceed the maximum appropriated Pell Grant, or be less
    than the minimum appropriated Pell Grant, for the current
    academic year. Grantees using funds for this purpose are
    required to match at least 33 percent of the funds used for
    grant aid in cash from non-federal sources and may not use more
    than 20 percent of their grant amount for direct grant aid
    purposes.

                          student loans interest rate

          The conference agreement includes a provision that
    replaces the interest rate formula for certain Parent Loans to
    Students and Supplemental Loans for Students which used the
    rates established by the auction of 52-week Treasury bills for
    setting new interest rates each July 1st. Interest rates for
    these loans will now be based on a new formula which uses the
    weekly average of the one year constant maturity Treasury
    yield, as published by the Board of Governors of the Federal
    Reserve System, for the last calendar week ending on or before
    June 26th preceding the July 1st effective date for interest
    rate changes.

                              olympic scholarships

          The conference agreement includes an amendment to the
    Higher Education Act of 1965 designating scholarships made
    under the Olympic Scholarships program as ``B.J. Stupak Olympic
    Scholarships.''

                               property transfer

          The conference agreement includes a provision that would
    release a reversionary interest at San Francisco State
    University.

                                   impact aid

          The conference agreement includes an amendment to the
    Elementary and Secondary Education Act of 1965, as amended,
    relating to certain school districts eligible for the Impact
    Aid program.

                           TITLE IV--RELATED AGENCIES

                          Armed Forces Retirement Home

          The conference agreement does not include an additional
    advance appropriation for the Armed Forces Retirement Home as
    proposed by the Senate. The House bill contained no similar
    provision.

                 corperation for national and community service

            domestic volunteer service programs, operating expenses

          The conference agreement includes $303,850,000 for the
    Domestic Volunteer Service programs instead of $294,527,000 as
    proposed by the House and $302,504,000 as proposed by the
    Senate.

    Volunteers in Service to America (VISTA)

          The conference agreement includes $83,074,000 for VISTA
    as proposed by the Senate instead of $80,574,000 as proposed by
    the House.

    National Senior Volunteer Corps

          The conference agreement includes $98,868,000 for the
    Foster Grandparent Program (FGP) instead of $95,988,000 as
    proposed by the House and $97,500,000 as proposed by the
    Senate. The agreement includes $40,395,000 for the Senior
    Companion Program (SCP) instead of $39,219,000 as proposed by
    the House and $40,219,000 as proposed by the Senate. The
    agreement also includes $48,884,000 for the Retired Senior
    Volunteer Program (RSVP) instead $46,117,000 as proposed by the
    House and $48,117,000 as proposed by the Senate.
          One-third of the increases provided for the FGP, SCP, and
    RSVP programs shall be used to fund Programs of National
    Significance expansion grants to allow existing FGP, RSVP and
    SCP programs to expand the number of volunteers serving in
    areas of critical need as identified by Congress in the
    Domestic Volunteer Service Act.
          Sufficient funding has been included to provide a 2
    percent increase for administrative costs realized by all
    current grantees in the FGP and SCP programs, and a 4 percent
    increase for administrative costs realized by all current
    grantees in the RSVP program. Funds remaining above these
    amounts should be used to begin new FGP, RSVP and SCP programs
    in geographic areas currently unserved. The conferees expect
    these projects to be awarded via a nationwide competition among
    potential community-based sponsors.
          The Corporation for National and Community Service shall
    comply with the directive that use of funding increases in the
    Foster Grandparent Program, Retired and Senior Volunteer
    Program and VISTA not be restricted to America Reads
    activities. The conferees further direct that the Corporation
    shall not stipulate a minimum or maximum amount for PNS grant
    augmentations.
          The conference agreement includes $400,000 for senior
    demonstration activities as proposed by the House instead of
    $1,494,000 as proposed by the Senate. These funds are to be
    used to carry out evaluations and to provide recruitment,
    training, and technical assistance to local projects as
    described in the budget request. No new demonstration projects
    may be begun with these funds. None of the increases provided
    for FGP, SCP, or RSVP in fiscal year 2001 may be used for
    demonstration activities. The conferees further expect that all
    future demonstration activities will be funded through
    allocations made through Part E of the Domestic Volunteer
    Service Act.
          Funds appropriated for fiscal year 2001 may not be used
    to implement or support service collaboration agreements or any
    other changes in the administration and/or governance of
    national service programs prior to passage of a bill by the
    authorizing committees of jurisdiction specifying such changes.

    Program Administration

          The conference agreement includes $32,229,000 for program
    administration of DVSA programs at the Corporation as proposed
    by the House instead of $32,100,000 as proposed by the Senate.
    Funding should be used for the new core financial management
    system and to make other technology enhancements that will
    improve customer service and field communications.

                      corporation for public broadcasting

          The conference agreement includes language proposed by
    the Senate providing an additional $20,000,000 for
    digitalization, if specifically authorized by subsequent
    legislation. The House bill contained no similar provision.

                   federal mediation and conciliation service

          The conference agreement includes $38,200,000 for the
    Federal Mediation and Conciliation Service as proposed by the
    Senate instead of $37,500,000 as proposed by the House.

                federal mine safety and health review commission

          The conference agreement includes $6,320,000 for the
    Federal Mine Safety and Health Review Commission as proposed by
    the Senate instead of $6,200,000 as proposed by the House.

                    institute of museum and library services

          The conference agreement includes $207,219,000 for the
    Institute of Museum and Library Services instead of
    $170,000,000 as proposed by the House and $168,000,000 as
    proposed by the Senate. Within the amounts provided, the
    conference agreement includes $39,219,000 for the following:
                $921,000--The Mariners' Museum, Newport News, VA
            for library archival and educational programming;
                $461,000--DuPage County Children's Museum in
            Naperville, IL for educational programming;
                $369,000--National Baseball Hall of Fame Library,
            Cooperstown New York for library improvements;
                $92,000--City of Corona, Riverside, CA for library
            technology improvements;
                $6,000--City of Murrieta Public Library, Murrieta,
            CA for technology improvements
                $1,382,000--Sierra Madre Public Library, Sierra
            Madre, CA for technology improvements;
                $23,000--Brooklyn Public Library, Brooklyn, NY for
            library materials;
                $46,000--NY Public Library Staten Island branch for
            book and archive enhancement;
                $266,000--Edward H. Nabb Research Center for
            Delmarva History and Culture at Salisbury State
            University, Salisbury, MD for a history laboratory
            project;
                $461,000--Texas Tech University, Lubbock TX for the
            Virtual Vietnam Archive Project;
                $230,000--City of Ontario Public Library, Ontario,
            CA for technology improvements;
                $461,000--Southern Oregon University, Ashland, OR
            for technology enhancements to the library's Government
            Documents Collection;
                $1,106,000--Christopher Newport University, Newport
            News, VA for upgrade of Information Technology Center;
                $2,600,000--Southeast Missouri State University
            River Campus and Museum to restore the historic former
            St. Vincent Seminary for museum programs;
                $900,000--Heritage Harbor Museum in Providence,
            Rhode Island for cataloging of materials and
            operations;
                $700,000--Institute for the Historic Study of Jazz
            at the University of Idaho for the cataloguing,
            digitalization, development of an on-line database, and
            preservation of archival materials which it owns;
                $1,800,000--Franklin Pierce College Life Center to
            serve as a library for the rural southwest region of
            New Hampshire;
                $500,000--Louisville Zoo for the Diane Fossey
            Mountain Gorilla program;
                $150,000--Oregon Historical Society Permanent
            Exhibition;
                $250,000--Pittsburgh Children's Museum;
                $510,000--Temple University Library for
            digitalization of resources from its Urban History ad
            African-American collections;
                $576,000--Franklin Institute for the Design of Life
            exhibition;
                $925,000--Please Touch Museum in Philadelphia,
            Pennsylvania;
                $500,000--Alaska Native Heritage Center portion of
            the New Trade Winds project;
                $1,000,000--National Museum of Women in the Arts in
            Washington D.C.;
                $1,200,000--Mississippi River Museum and Discovery
            Center in Dubuque, Iowa for exhibit and library
            enhancement;
                $650,000--Salisbury House Foundation in Des Moines,
            Iowa to improve security and preservation of its
            collection;
                $150,000--Linn County, Iowa Historical Museum
            History Center in support of the ``This Old Digital
            City'' project;
                $4,000,000--Newsline for the Blind to expand
            services for the blind to libraries across the country
            including $100,000 for the West Virginia Newsline for
            the Blind and $100,000 for the Iowa Newsline for the
            Blind;
                $1,000,000--Clay Center for the Arts and Sciences
            for a multimedia display screen, and the fabrication
            and design of a science exhibit;
                $650,000--Bishops Museum in Hawaii as part of the
            ``New Trade Winds'' project;
                $500,000--Wisconsin Maritime Museum for interactive
            exhibits;
                $250,000--Natural History Museum of Los Angeles to
            continue outreach and educational activities;
                $400,000--Perkins Geology Museum at the University
            of Vermont to digitalize its collection;
                $400,000--Walt Whitman Cultural Arts Center in
            Camden, New Jersey to expand cultural education
            programs;
                $400,000--Plainfield Public Library in Plainfield,
            New Jersey to upgrade and expand computer and internet
            services;
                $150,000--Ducktown Arts District in Atlantic City,
            New Jersey to expand access to cultural arts programs;
                $400,000--Lake Champlain Science Center for
            exhibits and programs;
                $250,000--Foundation for the Arts, Music, and
            Entertainment of Shreveport-Bossier, Inc.;
                $100,000--Bryant College in Rhode Island for a
            technology initiative linking libraries of institutions
            of higher education;
                $120,000--Fenton Historical Museum of Jamestown,
            New York;
                $461,000--Abraham Lincoln Bicentennial Commission;
                $43,000--Sumter County Library, Sumter, South
            Carolina for the acquisition of library materials;
                $85,000--New York Botanical Garden, Bronx, New
            York, to expand access to plant specimen database;
                $128,000--Nassau County Museum of Art in Roslyn
            Harbor, New York, to expand educational programs for
            elementary and secondary students;
                $128,000--Roberson Museum and Science Center in
            Binghampton, New York for an educational science and
            engineering pilot program;
                $128,000--North Carolina Museum of Life and Science
            for development of BioQuest exhibits;
                $170,000--George Eastman House in Rochester, New
            York, to digitally archive and catalog photographic
            collections;
                $213,000--Fitchburg Art Museum in Fitchburg,
            Massachusetts to expand public access through
            technology upgrades;
                $298,000--Columbia College, Chicago, Center for
            Black Music Research in Chicago, Illinois, for
            education and outreach activities;
                $298,000--Mystic Seaport, the Museum of America and
            the Sea, in Connecticut, to develop an informal
            learning laboratory;
                $468,000--City of Houston Public Library, Houston,
            Texas, for information technology development and
            equipment;
                $410,000--AE Seaman Mineral Museum in Houghton,
            Michigan;
                $680,000--AMISTAD Research Center at Tulane
            University in New Orleans, Louisiana to expand
            automation, electronic communications, educational
            outreach and community involvement activities;
                $723,000--New Bedford Whaling Museum in
            Massachusetts for exhibits, technology upgrades and to
            expand public access;
                $723,000--The George C. Page Museum, Los Angeles,
            California to expand education and outreach programs;
                $850,000--The Children's Museum of Los Angeles,
            California, for development of exhibits, educational
            programs and teacher training;
                $850,000--Berman Museum of Art of Ursinus College,
            Collegeville, Pennsylvania for expansion of an arts
            education program and community outreach activities;
                $2,125,000--Silas Bronson Library in Waterbury,
            Connecticut for information technology equipment and
            upgrades;
                $2,435,000--New York Public Library for the
            development of a digital archive at the Schomburg
            Center for Research in Black Culture to document
            African American migration;
                $425,000--National Aviary in Pittsburgh,
            Pennsylvania, in collaboration with Carnegie Mellon
            University, to develop and utilize interactive mobile
            robots in support of distance learning;
                $723,000--Old Sturbridge Village, Sturbridge,
            Massachusetts for the development of a distance
            learning project.

                      Medicare Payment Advisory Commission

          The conference agreement provides $8,000,000 for the
    Medicare Payment Advisory Commission (MedPAC), the same as both
    the House and the Senate. A documented national shortage of
    geriatricians, physicians who specialize in the management of
    care for frail, older persons, exists. The shortage has
    occurred, in part, because of inadequate Medicare reimbursement
    and physician training payment restrictions. For this reason,
    MedPAC should study the issue, reporting specifically on how
    the hospital specific cap on residents for purposes of Medicare
    graduate medical education payments impacts geriatric training
    programs and providing recommendations regarding how to alter
    the cap to resolve this problem.

            National Commission on Libraries and Information Science

          The conference agreement includes $1,495,000 for the
    National Commission on Libraries and Information Science as
    proposed by the Senate instead of $1,400,000 as proposed by the
    House.

                         National Council on Disability

          The conference agreement includes $2,615,000 for the
    National Council on Disability as proposed by the Senate
    instead of $2,450,000 as proposed by the House.

                         National Education Goals Panel

          The conference agreement includes $1,500,000 for the
    National Education Goals Panel instead of $2,350,000 as
    proposed by the Senate. The House bill did not propose funding
    for this agency.

                         National Labor Relations Board

          The conference agreement includes $216,438,000 for the
    National Labor Relations Board as proposed by the Senate
    instead of $205,717,000 as proposed by the House.

                            National Mediation Board

          The conference agreement includes $10,400,000 for the
    National Mediation Board as proposed by the Senate instead of
    $9,800,000 as proposed by the House.

                Occupational Safety and Health Review Commission

          The conference agreement includes $8,720,000 for the
    Occupational Safety and Health Review Commission as proposed by
    the Senate instead of $8,600,000 as proposed by the House.

                           Railroad Retirement Board

                          LIMITATION ON ADMINISTRATION

          The conference agreement includes a limitation on
    transfers from the railroad trust funds of $95,000,000 for
    administrative expenses as proposed by the House instead of
    $92,500,000 as proposed by the Senate.

                          OFFICE OF INSPECTOR GENERAL

          The conference agreement includes a limitation on
    transfers from the railroad trust funds of $5,700,000 for
    administrative expenses of the Office of Inspector General as
    proposed by the Senate instead of $5,380,000 as proposed by the
    House.

                         Social Security Administration

                      SUPPLEMENTAL SECURITY INCOME PROGRAM

          The conference agreement includes $23,344,000,000 for the
    Supplemental Security Income Program instead of $23,354,000,000
    as proposed by the Senate and $23,127,000,000 as proposed by
    the House.

                     LIMITATION ON ADMINISTRATIVE EXPENSES

          The conference agreement includes a limitation of
    $7,124,000,000 on transfers from the Social Security and
    Medicare trust funds and Supplemental Security Income program
    for administrative activities instead of $6,978,036,000 as
    proposed by the House and $7,010,800,000 as proposed by the
    Senate.
          The conference agreement includes language proposed by
    the House clarifying that the Social Security Administration
    may use unexpended funds for investment in information
    technology and telecommunications hardware and software
    infrastructure, including related equipment and non-payroll
    expenses associated solely with information technology and
    telecommunications technology. The agreement also includes
    language proposed by the House that requires the Secretary of
    the Treasury to reimburse the Trust Fund from the General Fund
    for the cost of official time for federal employees and
    facilities and support services for labor organizations. The
    Senate bill contained no similar provisions.

                          OFFICE OF INSPECTOR GENERAL

          The conference agreement includes $69,444,000 for the
    Office of Inspector General through a combination of general
    revenues and limitations on trust fund transfers as proposed by
    the Senate instead of $65,752,000 as proposed by the House.

                        United States Institute of Peace

          The conference agreement includes $15,000,000 for the
    United States Institute of Peace as proposed by the House
    instead of $12,951,000 as proposed by the Senate. The conferees
    direct the United States Institute of Peace to provide
    information in the fiscal year 2002 Congressional budget
    justification regarding the use of appropriated funds in the
    Endowment. Included in this information should be the total
    amount of appropriated funds transferred into the Endowment
    from the most recent fiscal year available, the total amount of
    interest earned in the fiscal year on those funds, a list of
    all dates in which draw downs occur and those amounts, and a
    beginning and end of year balance of the Endowment.

                          TITLE V--GENERAL PROVISIONS

                        Distribution of Sterile Needles

          The conference agreement includes a provision proposed by
    the House that prohibits the use of funds in this Act to carry
    out any program of distributing sterile needles or syringes for
    the hypodermic injection of any illegal drug. The Senate bill
    contained a similar provision except that it would have allowed
    for such a program if the Secretary of Health and Human
    Services determines that these programs are effective in
    preventing the spread of HIV and do not encourage the use of
    illegal drugs.

                           Fifth Quarter Obligations

          The conference agreement does not include a provision
    proposed by both the House and Senate to allow fiscal year 2000
    unobligated balances for salaries and expenses to remain
    available through the first quarter of fiscal year 2001.

              Restoring SSI Benefits Payments to Appropriate Year

          The conference agreement does not include a provision
    proposed by the House to restore benefit payments for
    Supplemental Security Income to the appropriate year. The
    Senate bill contained no similar provision.

                  Evaluation of Abstinence Education Programs

          The conference agreement includes a provision proposed by
    the House to extend the funding available for evaluations of
    abstinence education programs to 2005 and provides for an
    interim report not later than January 1, 2002. The Senate bill
    contained no similar provision.

                 Temporary Assistance to Needy Families (TANF)

          The conference agreement does not include a provision
    proposed by the Senate to reduce TANF supplemental grants in
    fiscal year 2001. The House bill contained no similar
    provision.

                 Discretionary Advance Appropriation Reduction

          The conference agreement does not include a provision
    proposed by the House to rescind funds from the Payments to
    States for the Child Care and Development Block Grant if the
    total level of discretionary advance appropriations for fiscal
    year 2002 exceeds $23,500,000,000. The Senate bill contained no
    similar provision.

                            Unique Health Identifier

          The conference agreement includes a provision proposed by
    the Senate to prohibit the promulgation or adoption of any
    final standard relating to a unique health identifier until
    legislation is enacted specifically approving the standard. The
    House bill contained a similar provision except it did not
    provide for legislative action.

                          State Supplementary Payments

          The conference agreement includes language proposed by
    the Senate that accelerates the effective date of current law
    requiring a State that has entered into an agreement with the
    Social Security Administration for Federal administration of
    State supplementary payments be required to remit payments and
    fees no later than the business day preceeding the SSI payment
    from September, 2000 to September, 2001.

                    Military Recruiting at Secondary Schools

          The conference agreement does not include a provision
    proposed by the House preventing secondary schools from
    prohibiting military recruitment. The Senate bill contained no
    similar provision.

                             NIH License Agreements

          The conferees do not include a provision proposed by the
    House regarding NIH license agreements. The Senate bill
    contained no similar provision.

         Across-the-Board Administrative and Related Expenses Reduction

          The conference agreement includes a provision to reduce
    administrative and related expenses of the Departments of
    Labor, Health and Human Services, and Education by $25,000,000.

          Emergency Contraception Distribution Through School Clinics

          The conference agreement does not include a provision
    proposed by the Senate to prohibit the distribution of or
    prescription for postcoital emergency contraception to an
    unemancipated minor on the premises or in the facilities of any
    elementary or secondary school. The House bill contained no
    similar provision.

                   Rights of Residents of Certain Facilities

          The conference agreement does not include a provision
    proposed by the Senate to amend the Public Health Service Act
    to add a new section titled ``Requirement Relating to the
    Rights of Residents of Certain Facilities''. The House bill
    contained no similar provision.

                    Sense of the Senate on Early Head Start

          The conference agreement deletes without prejudice a
    Sense of the Senate provision regarding blood lead screening
    tests on children enrolled in early head start programs. The
    House bill contained no similar provision.

           Sense of the Senate on a Study of Sexual Abuse in Schools

          The conference agreement deletes without prejudice a
    Sense of the Senate provision regarding a study on the issue of
    sexual abuse in schools. The House bill contained no similar
    provision.

                 GAO Study into Federal Fetal Tissue Practices

          The conference agreement does not include a provision
    proposed by the Senate requesting a GAO study into Federal
    fetal tissue practices. The House bill contained no similar
    provision.

     Genetic Information Nondiscrimination in Health Insurance Act of 1999

          The conference agreement does not include a provision
    proposed by the Senate regarding genetic information. The House
    bill contained no similar provision.

                Health Care Access and Protections for Consumers

          The conference agreement does not include the health care
    access and protections for consumers provision as proposed by
    the Senate. The House bill contained no similar provision.

                              Human Papillomavirus

          The conference agreement includes a provision related to
    human papillomavirus. The House and Senate bills contained no
    similar provision.

                               Saccharin Labeling

          The conference agreement includes a provision that
    repeals the mandated saccharin warning label. The House and
    Senate bills contained no similar provision.

               special benefits for certain world war ii veterans

          The conference agreement includes a provision which
    allows a State and the Commissioner of Social Security to enter
    into an agreement under which the Commissioner would make State
    payments, on behalf of the State, to supplement federal
    payments provided under Title VIII of the Social Security Act.

                              Statutory employees

          The Conferees note that, given the complexity of issues
    that were considered under prior law in correctly determining
    the amount of Supplemental Security Income payable to
    individuals who are classified as ``statutory employees'', or
    their dependents, that in the past cases may have been
    determined erroneously. The Conferees urge the Social Security
    Administration to act favorably on requests for waiver of
    overpayment that may have accrued in such cases.

                     TITLE VI--ASSETS FOR INDEPENDENCE ACT

          The conference agreement includes amendments to the
    Assets for Independence Act to make technical and conforming
    changes to ensure accurate research and measurement of the
    effectiveness of Individual Development Accounts.

               TITLE VII--PHYSICAL EDUCATION FOR PROGRESS PROGRAM

          The conference agreement includes the Physical Education
    for Progress program which will enable local educational
    agencies to initiate, expand, and improve physical education
    programs for all K-12 students.

                    TITLE VIII--EARLY LEARNING OPPORTUNITIES

          The conference agreement includes the Early Learning
    Opportunities Act, which is designed to help states increase
    the availability of voluntary programs, services, and
    activities that support early childhood education.

                           TITLE IX--RURAL EDUCATION

          The conference agreement includes the Rural Achievement
    Act, which amends Part J of Title X of the Elementary and
    Secondary Education Act (ESEA) of 1965 to better address the
    different needs of small, rural school districts. Under this
    provision, a local educational agency (LEA) would be able to
    combine funding under various ESEA programs to support
    compensatory education, teacher professional development,
    education technology, and school drug and violence prevention
    activities authorized under ESEA that are intended to improve
    the academic achievement of elementary and secondary school
    students.

                              Conference Agreement

          The following table displays the amounts agreed to for
    each program, project or activity with appropriate comparisons:

                       LEGISLATIVE BRANCH APPROPRIATIONS

          The conference agreement would enact the provisions of
    H.R. 5657 as introduced on December 14, 2000. The text of that
    bill follows:

    A BILL Making appropriations for the Legislative Branch for the fiscal
            year ending September 30, 2001, and for other purposes.

          Be it enacted by the Senate and House of Representatives
    of the United States of America in Congress assembled, That the
    following sums are appropriated, out of any money in the
    Treasury not otherwise appropriated, for the Legislative Branch
    for the fiscal year ending September 30, 2001, and for other
    purposes, namely:

                       TITLE I--CONGRESSIONAL OPERATIONS

                                     SENATE

          payment to widows and heirs of deceased members of congress

        For a payment to Nancy Nally Coverdell, widow of Paul D.
    Coverdell, late a Senator from Georgia, $141,300.

                               expense allowances

        For expense allowances of the Vice President, $10,000; the
    President Pro Tempore of the Senate, $10,000; Majority Leader
    of the Senate, $10,000; Minority Leader of the Senate, $10,000;
    Majority Whip of the Senate, $5,000; Minority Whip of the
    Senate, $5,000; and Chairmen of the Majority and Minority
    Conference Committees, $3,000 for each Chairman; and Chairmen
    of the Majority and Minority Policy Committees, $3,000 for each
    Chairman; in all, $62,000.

        representation allowances for the majority and minority leaders

        For representation allowances of the Majority and Minority
    Leaders of the Senate, $15,000 for each such Leader; in all,
    $30,000.

                        Salaries, Officers and Employees

        For compensation of officers, employees, and others as
    authorized by law, including agency contributions, $92,321,000,
    which shall be paid from this appropriation without regard to
    the below limitations, as follows:

                          office of the vice president

        For the Office of the Vice President, $1,785,000.

                      office of the president pro tempore

        For the Office of the President Pro Tempore, $453,000.

                  offices of the majority and minority leaders

        For Offices of the Majority and Minority Leaders,
    $2,742,000.

                   offices of the majority and minority whips

        For Offices of the Majority and Minority Whips, $1,722,000.

                          committee on appropriations

        For salaries of the Committee on Appropriations,
    $6,917,000.

                             conference committees

        For the Conference of the Majority and the Conference of
    the Minority, at rates of compensation to be fixed by the
    Chairman of each such committee, $1,152,000 for each such
    committee; in all, $2,304,000.

     offices of the secretaries of the conference of the majority and the
                           conference of the minority

        For Offices of the Secretaries of the Conference of the
    Majority and the Conference of the Minority, $590,000.

                               policy committees

        For salaries of the Majority Policy Committee and the
    Minority Policy Committee, $1,171,000 for each such committee;
    in all, $2,342,000.

                             office of the chaplain

        For Office of the Chaplain, $288,000.

                            office of the secretary

        For Office of the Secretary, $14,738,000.

                 office of the sergeant at arms and doorkeeper

        For Office of the Sergeant at Arms and Doorkeeper,
    $34,811,000.

            offices of the secretaries for the majority and minority

        For Offices of the Secretary for the Majority and the
    Secretary for the Minority, $1,292,000.

                   agency contributions and related expenses

        For agency contributions for employee benefits, as
    authorized by law, and related expenses, $22,337,000.

                Office of the Legislative Counsel of the Senate

        For salaries and expenses of the Office of the Legislative
    Counsel of the Senate, $4,046,000.

                         Office of Senate Legal Counsel

        For salaries and expenses of the Office of Senate Legal
    Counsel, $1,069,000.

    Expense Allowances of the Secretary of the Senate, Sergeant at Arms and
    Doorkeeper of the Senate, and Secretaries for the Majority and Minority
                                 of the Senate

        For expense allowances of the Secretary of the Senate,
    $3,000; Sergeant at Arms and Doorkeeper of the Senate, $3,000;
    Secretary for the Majority of the Senate, $3,000; Secretary for
    the Minority of the Senate, $3,000; in all, $12,000.

                       Contingent Expenses of the Senate

                          inquiries and investigations

        For expenses of inquiries and investigations ordered by the
    Senate, or conducted pursuant to section 134(a) of Public Law
    601, Seventy-ninth Congress, as amended, section 112 of Public
    Law 96-304 and Senate Resolution 281, agreed to March 11, 1980,
    $73,000,000.

    expenses of the united states senate caucus on international narcotics
                                    control

        For expenses of the United States Senate Caucus on
    International Narcotics Control, $370,000.

                            secretary of the senate

        For expenses of the Office of the Secretary of the Senate,
    $2,077,000.

                 sergeant at arms and doorkeeper of the senate

        For expenses of the Office of the Sergeant at Arms and
    Doorkeeper of the Senate, $71,511,000, of which $2,500,000
    shall remain available until September 30, 2003.

                              miscellaneous items

        For miscellaneous items, $8,655,000.

            senators' official personnel and office expense account

        For Senators' Official Personnel and Office Expense
    Account, $253,203,000.

                              official mail costs

        For expenses necessary for official mail costs of the
    Senate $300,000.

                           administrative provisions

        Section 1. Semiannual Report. (a) In General.--Section
    105(a) of the Legislative Branch Appropriations Act, 1965 (2
    U.S.C. 104a) is amended by adding at the end the following:
        ``(5)(A) Notwithstanding the requirements of paragraph (1)
    relating to the level of detail of statement and itemization,
    each report by the Secretary of the Senate required under such
    paragraph shall be compiled at a summary level for each office
    of the Senate authorized to obligate appropriated funds.
        ``(B) Subparagraph (A) shall not apply to the reporting of
    expenditures relating to personnel compensation, travel and
    transportation of persons, other contractual services, and
    acquisition of assets.
        ``(C) In carrying out this paragraph the Secretary of the
    Senate shall apply the Standard Federal Object Classification
    of Expenses as the Secretary determines appropriate.''.
        (b) Effective Date and Application.--
                (1) In general.--Subject to paragraph (2), the
            amendment made by this section shall take effect on the
            date of enactment of this Act.
                (2) First report after enactment.--The Secretary of
            the Senate may elect to compile and submit the report
            for the semiannual period during which the date of
            enactment of this section occurs, as if the amendment
            made by this section had not been enacted.
        Sec. 2. Senate Employee Pay Adjustments. Section 4 of the
    Federal Pay Comparability Act of 1970 (2 U.S.C. 60a-1) is
    amended--
                (1) in subsection (a)--
                        (A) by inserting ``(or section 5304 or
                    5304a of such title, as applied to employees
                    employed in the pay locality of the Washington,
                    D.C.-Baltimore, Maryland consolidated
                    metropolitan statistical area)'' after
                    ``employees under section 5303 of title 5,
                    United States Code,''; and
                        (B) by inserting ``(and, as the case may
                    be, section 5304 or 5304a of such title, as
                    applied to employees employed in the pay
                    locality of the Washington, D.C.-Baltimore,
                    Maryland consolidated metropolitan statistical
                    area)'' after ``the President under such
                    section 5303'';
                (2) by redesignating subsection (e) as subsection
            (f ); and
                (3) by inserting after subsection (d) the
            following:
        ``(e) Any percentage used in any statute specifically
    providing for an adjustment in rates of pay in lieu of an
    adjustment made under section 5303 of title 5, United States
    Code, and, as the case may be, section 5304 or 5304a of such
    title for any calendar year shall be treated as the percentage
    used in an adjustment made under such section 5303, 5304, or
    5304a, as applicable, for purposes of subsection (a).''.
        Sec. 3. (a) Section 6(c) of the Legislative Branch
    Appropriations Act, 1999 (2 U.S.C. 121b-1(c)) is amended--
                (1) by striking ``and agency contributions'' in
            paragraph (2)(A), and
                (2) by adding at the end the following:
                ``(3) Agency contributions for employees of Senate
            Hair Care Services shall be paid from the
            appropriations account for `Salaries, Officers and
            Employees'.''.
        (b) This section shall apply to pay periods beginning on or
    after October 1, 2000.
        Sec. 4. (a) There is established in the Treasury of the
    United States a revolving fund to be known as the Senate Health
    and Fitness Facility Revolving Fund (``the revolving fund'').
        (b) The Architect of the Capitol shall deposit in the
    revolving fund--
                (1) any amounts received as dues or other
            assessments for use of the Senate Health and Fitness
            Facility, and
                (2) any amounts received from the operation of the
            Senate waste recycling program.
        (c) Subject to the approval of the Committee on
    Appropriations of the Senate, amounts in the revolving fund
    shall be available to the Architect of the Capitol, without
    fiscal year limitation, for payment of costs of the Senate
    Health and Fitness Facility.
        (d) The Architect of the Capitol shall withdraw from the
    revolving fund and deposit in the Treasury of the United States
    as miscellaneous receipts all moneys in the revolving fund that
    the Architect determines are in excess of the current and
    reasonably foreseeable needs of the Senate Health and Fitness
    Facility.
        (e) Subject to the approval of the Committee on Rules and
    Administration of the Senate, the Architect of the Capitol may
    issue such regulations as may be necessary to carry out the
    provisions of this section.
        Sec. 5. For each fiscal year (commencing with the fiscal
    year ending September 30, 2001), there is authorized an expense
    allowance for the Chairmen of the Majority and Minority Policy
    Committees which shall not exceed $3,000 each fiscal year for
    each such Chairman; and amounts from such allowance shall be
    paid to either of such Chairmen only as reimbursement for
    actual expenses incurred by him and upon certification and
    documentation of such expenses, and amounts so paid shall not
    be reported as income and shall not be allowed as a deduction
    under the Internal Revenue Code of 1986.
        Sec. 6. (a) The head of the employing office of an employee
    of the Senate may, upon termination of employment of the
    employee, authorize payment of a lump sum for the accrued
    annual leave of that employee if--
                (1) the head of the employing office--
                        (A) has approved a written leave policy
                    authorizing employees to accrue leave and
                    establishing the conditions upon which accrued
                    leave may be paid; and
                        (B) submits written certification to the
                    Financial Clerk of the Senate of the number of
                    days of annual leave accrued by the employee
                    for which payment is to be made under the
                    written leave policy of the employing office;
                    and
                (2) there are sufficient funds to cover the lump
            sum payment.
        (b)(1) A lump sum payment under this section shall not
    exceed the lesser of--
                (A) twice the monthly rate of pay of the employee;
            or
                (B) the product of the daily rate of pay of the
            employee and the number of days of accrued annual leave
            of the employee.
        (2) The Secretary of the Senate shall determine the rates
    of pay of an employee under paragraph (1) (A) and (B) on the
    basis of the annual rate of pay of the employee in effect on
    the date of termination of employment.
        (c) Any payment under this section shall be paid from the
    appropriation account or fund used to pay the employee.
        (d) If an individual who received a lump sum payment under
    this section is reemployed as an employee of the Senate before
    the end of the period covered by the lump sum payment, the
    individual shall refund an amount equal to the applicable pay
    covering the period between the date of reemployment and the
    expiration of the lump sum period. Such amount shall be
    deposited to the appropriation account or fund used to pay the
    lump sum payment.
        (e) The Committee on Rules and Administration of the Senate
    may prescribe regulations to carry out this section.
        (f ) In this section, the term--
                (1) ``employee of the Senate'' means any employee
            whose pay is disbursed by the Secretary of the Senate,
            except that the term does not include a member of the
            Capitol Police or a civilian employee of the Capitol
            Police; and
                (2) ``head of the employing office'' means any
            person with the final authority to appoint, hire,
            discharge, and set the terms, conditions, or privileges
            of the employment of an individual whose pay is
            disbursed by the Secretary of the Senate.
        Sec. 7. (a) Agency contributions for employees whose
    salaries are disbursed by the Secretary of the Senate from the
    appropriations account ``Joint Economic Committee'' under the
    heading ``JOINT ITEMS'' shall be paid from the Senate
    appropriations account for ``Salaries, Officers and
    Employees''.
        (b) This section shall apply to pay periods beginning on or
    after October 1, 2000.
        Sec. 8. Section 316 of Public Law 101-302 (40 U.S.C. 188b-
    6) is amended--
                (1) in the first sentence of subsection (a) by
            striking ``items of art, fine art, and historical
            items'' and inserting ``works of art, historical
            objects, documents or material relating to historical
            matters for placement or exhibition'';
                (2) in the second sentence of subsection (a)--
                        (A) by striking ``such items'' each place
                    it appears and inserting ``such works, objects,
                    documents, or material'' in each such place;
                    and
                        (B) by striking ``an item'' and inserting
                    ``a work, object, document, or material''; and
                (3) in subsection (b)--
                        (A) by striking ``such items of art'' and
                    inserting ``such works, objects, documents, or
                    materials''; and
                        (B) by striking ``shall'' and inserting
                    ``may''.

                            HOUSE OF REPRESENTATIVES

                             Salaries and Expenses

        For salaries and expenses of the House of Representatives,
    $769,551,000, as follows:

                            house leadership offices

        For salaries and expenses, as authorized by law,
    $14,378,000, including: Office of the Speaker, $1,759,000,
    including $25,000 for official expenses of the Speaker; Office
    of the Majority Floor Leader, $1,726,000, including $10,000 for
    official expenses of the Majority Leader; Office of the
    Minority Floor Leader, $2,096,000, including $10,000 for
    official expenses of the Minority Leader; Office of the
    Majority Whip, including the Chief Deputy Majority Whip,
    $1,466,000, including $5,000 for official expenses of the
    Majority Whip; Office of the Minority Whip, including the Chief
    Deputy Minority Whip, $1,096,000, including $5,000 for official
    expenses of the Minority Whip; Speaker's Office for Legislative
    Floor Activities, $410,000; Republican Steering Committee,
    $765,000; Republican Conference, $1,255,000; Democratic
    Steering and Policy Committee, $1,352,000; Democratic Caucus,
    $668,000; nine minority employees, $1,229,000; training and
    program development--majority, $278,000; and training and
    program development--minority, $278,000.

                      Members' Representational Allowances

       Including Members' Clerk Hire, Official Expenses of Members, and
                                 Official Mail

        For Members' representational allowances, including
    Members' clerk hire, official expenses, and official mail,
    $410,182,000.

                              Committee Employees

                    Standing Committees, Special and Select

        For salaries and expenses of standing committees, special
    and select, authorized by House resolutions, $92,196,000:
    Provided, That such amount shall remain available for such
    salaries and expenses until December 31, 2002.

                          Committee on Appropriations

        For salaries and expenses of the Committee on
    Appropriations, $20,628,000, including studies and examinations
    of executive agencies and temporary personal services for such
    committee, to be expended in accordance with section 202(b) of
    the Legislative Reorganization Act of 1946 and to be available
    for reimbursement to agencies for services performed: Provided,
    That such amount shall remain available for such salaries and
    expenses until December 31, 2002.

                        salaries, officers and employees

        For compensation and expenses of officers and employees, as
    authorized by law, $90,403,000, including: for salaries and
    expenses of the Office of the Clerk, including not more than
    $3,500, of which not more than $2,500 is for the Family Room,
    for official representation and reception expenses,
    $14,590,000; for salaries and expenses of the Office of the
    Sergeant at Arms, including the position of Superintendent of
    Garages, and including not more than $750 for official
    representation and reception expenses, $3,692,000; for salaries
    and expenses of the Office of the Chief Administrative Officer,
    $58,550,000, of which $1,054,000 shall remain available until
    expended, including $26,605,000 for salaries, expenses and
    temporary personal services of House Information Resources, of
    which $26,020,000 is provided herein: Provided, That of the
    amount provided for House Information Resources, $6,497,000
    shall be for net expenses of telecommunications: Provided
    further, That House Information Resources is authorized to
    receive reimbursement from Members of the House of
    Representatives and other governmental entities for services
    provided and such reimbursement shall be deposited in the
    Treasury for credit to this account; for salaries and expenses
    of the Office of the Inspector General, $3,249,000; for
    salaries and expenses of the Office of General Counsel,
    $806,000; for the Office of the Chaplain, $140,000; for
    salaries and expenses of the Office of the Parliamentarian,
    including the Parliamentarian and $2,000 for preparing the
    Digest of Rules, $1,201,000; for salaries and expenses of the
    Office of the Law Revision Counsel of the House, $2,045,000;
    for salaries and expenses of the Office of the Legislative
    Counsel of the House, $5,085,000; for salaries and expenses of
    the Corrections Calendar Office, $832,000; and for other
    authorized employees, $213,000.

                            allowances and expenses

        For allowances and expenses as authorized by House
    resolution or law, $141,764,000, including: supplies,
    materials, administrative costs and Federal tort claims,
    $2,235,000; official mail for committees, leadership offices,
    and administrative offices of the House, $410,000; Government
    contributions for health, retirement, Social Security, and
    other applicable employee benefits, $138,726,000; and
    miscellaneous items including purchase, exchange, maintenance,
    repair and operation of House motor vehicles,
    interparliamentary receptions, and gratuities to heirs of
    deceased employees of the House, $393,000.

                               child care center

        For salaries and expenses of the House of Representatives
    Child Care Center, such amounts as are deposited in the account
    established by section 312(d)(1) of the Legislative Branch
    Appropriations Act, 1992 (40 U.S.C. 184g(d)(1)), subject to the
    level specified in the budget of the Center, as submitted to
    the Committee on Appropriations of the House of
    Representatives.

                           Administrative Provisions

        Sec. 101. During fiscal year 2001 and any succeeding fiscal
    year, the Chief Administrative Officer of the House of
    Representatives may--
                (1) enter into contracts for the acquisition of
            severable services for a period that begins in 1 fiscal
            year and ends in the next fiscal year to the same
            extent as the head of an executive agency under the
            authority of section 303L of the Federal Property and
            Administrative Services Act of 1949 (41 U.S.C. 253l);
            and
                (2) enter into multi-year contracts for the
            acquisitions of property and nonaudit-related services
            to the same extent as executive agencies under the
            authority of section 304B of the Federal Property and
            Administrative Services Act of 1949 (41 U.S.C. 254c).
        Sec. 102. (a) Permitting New House Employees To Be Placed
    Above Minimum Step of Compensation Level.--The House Employees
    Position Classification Act (2 U.S.C. 291 et seq.) is amended
    by striking section 10 (2 U.S.C. 299).
        (b) Effective Date.--The amendment made by subsection (a)
    shall apply with respect to employees appointed on or after
    October 1, 2000.
        Sec. 103. (a) Requiring Amounts Remaining in Members'
    Representational Allowances To Be Used for Deficit Reduction or
    To Reduce the Federal Debt.--Notwithstanding any other
    provision of law, any amounts appropriated under this Act for
    ``HOUSE OF REPRESENTATIVES--Salaries and Expenses--Members'
    Representational Allowances'' shall be available only for
    fiscal year 2001. Any amount remaining after all payments are
    made under such allowances for fiscal year 2001 shall be
    deposited in the Treasury and used for deficit reduction (or,
    if there is no Federal budget deficit after all such payments
    have been made, for reducing the Federal debt, in such manner
    as the Secretary of the Treasury considers appropriate).
        (b) Regulations.--The Committee on House Administration of
    the House of Representatives shall have authority to prescribe
    regulations to carry out this section.
        (c) Definition.--As used in this section, the term ``Member
    of the House of Representatives'' means a Representative in, or
    a Delegate or Resident Commissioner to, the Congress.
        Sec. 104. (a) There is hereby appropriated for payment to
    the Prince William County Public Schools $215,000, to be used
    to pay for educational services for the son of Mrs. Evelyn
    Gibson, the widow of Detective John Michael Gibson of the
    United States Capitol Police.
        (b) The payment under subsection (a) shall be made in
    accordance with terms and conditions established by the
    Committee on House Administration of the House of
    Representatives.
        (c) The funds used for the payment made under subsection
    (a) shall be derived from the applicable accounts of the House
    of Representatives.

                                  JOINT ITEMS

        For Joint Committees, as follows:

         Joint Congressional Committee on Inaugural Ceremonies of 2001

        For all construction expenses, salaries, and other expenses
    associated with conducting the inaugural ceremonies of the
    President and Vice President of the United States, January 20,
    2001, in accordance with such program as may be adopted by the
    joint committee authorized by Senate Concurrent Resolution 89,
    agreed to March 14, 2000 (One Hundred Sixth Congress), and
    Senate Concurrent Resolution 90, agreed to March 14, 2000 (One
    Hundred Sixth Congress), $1,000,000 to be disbursed by the
    Secretary of the Senate and to remain available until September
    30, 2001. Funds made available under this heading shall be
    available for payment, on a direct or reimbursable basis,
    whether incurred on, before, or after, October 1, 2000:
    Provided, That the compensation of any employee of the
    Committee on Rules and Administration of the Senate who has
    been designated to perform service for the Joint Congressional
    Committee on Inaugural Ceremonies shall continue to be paid by
    the Committee on Rules and Administration, but the account from
    which such staff member is paid may be reimbursed for the
    services of the staff member (including agency contributions
    when appropriate) out of funds made available under this
    heading.

                            administrative provision

        Sec. 105. During fiscal year 2001 the Secretary of Defense
    shall provide protective services on a non-reimbursable basis
    to the United States Capitol Police with respect to the
    following events:
                (1) Upon request of the Chair of the Joint
            Congressional Committee on Inaugural Ceremonies
            established under Senate Concurrent Resolution 89, One
            Hundred Sixth Congress, agreed to March 14, 2000, the
            proceedings and ceremonies conducted for the
            inauguration of the President-elect and Vice President-
            elect of the United States.
                (2) Upon request of the Speaker of the House of
            Representatives and the President Pro Tempore of the
            Senate, the joint session of Congress held to receive a
            message from the President of the United States on the
            State of the Union.

                            Joint Economic Committee

        For salaries and expenses of the Joint Economic Committee,
    $3,315,000, to be disbursed by the Secretary of the Senate.

                          Joint Committee on Taxation

        For salaries and expenses of the Joint Committee on
    Taxation, $6,430,000, to be disbursed by the Chief
    Administrative Officer of the House.
        For other joint items, as follows:

                       Office of the Attending Physician

        For medical supplies, equipment, and contingent expenses of
    the emergency rooms, and for the Attending Physician and his
    assistants, including: (1) an allowance of $1,500 per month to
    the Attending Physician; (2) an allowance of $500 per month
    each to three medical officers while on duty in the Office of
    the Attending Physician; (3) an allowance of $500 per month to
    one assistant and $400 per month each not to exceed 11
    assistants on the basis heretofore provided for such
    assistants; and (4) $1,159,904 for reimbursement to the
    Department of the Navy for expenses incurred for staff and
    equipment assigned to the Office of the Attending Physician,
    which shall be advanced and credited to the applicable
    appropriation or appropriations from which such salaries,
    allowances, and other expenses are payable and shall be
    available for all the purposes thereof, $1,835,000, to be
    disbursed by the Chief Administrative Officer of the House.

                              Capitol Police Board

                                 Capitol Police

                                    salaries

        For the Capitol Police Board for salaries of officers,
    members, and employees of the Capitol Police, including
    overtime, hazardous duty pay differential, clothing allowance
    of not more than $600 each for members required to wear
    civilian attire, and Government contributions for health,
    retirement, Social Security, and other applicable employee
    benefits, $97,142,000, of which $47,053,000 is provided to the
    Sergeant at Arms of the House of Representatives, to be
    disbursed by the Chief Administrative Officer of the House, and
    $50,089,000 is provided to the Sergeant at Arms and Doorkeeper
    of the Senate, to be disbursed by the Secretary of the Senate:
    Provided, That, of the amounts appropriated under this heading,
    such amounts as may be necessary may be transferred between the
    Sergeant at Arms of the House of Representatives and the
    Sergeant at Arms and Doorkeeper of the Senate, upon approval of
    the Committee on Appropriations of the House of Representatives
    and the Committee on Appropriations of the Senate.

                                general expenses

        For the Capitol Police Board for necessary expenses of the
    Capitol Police, including motor vehicles, communications and
    other equipment, security equipment and installation, uniforms,
    weapons, supplies, materials, training, medical services,
    forensic services, stenographic services, personal and
    professional services, the employee assistance program, not
    more than $2,000 for the awards program, postage, telephone
    service, travel advances, relocation of instructor and liaison
    personnel for the Federal Law Enforcement Training Center, and
    $85 per month for extra services performed for the Capitol
    Police Board by an employee of the Sergeant at Arms of the
    Senate or the House of Representatives designated by the
    Chairman of the Board, $6,772,000, to be disbursed by the
    Capitol Police Board or their delegee: Provided, That,
    notwithstanding any other provision of law, the cost of basic
    training for the Capitol Police at the Federal Law Enforcement
    Training Center for fiscal year 2001 shall be paid by the
    Secretary of the Treasury from funds available to the
    Department of the Treasury.

                           Administrative Provisions

        Sec. 106. Amounts appropriated for fiscal year 2001 for the
    Capitol Police Board for the Capitol Police may be transferred
    between the headings ``salaries'' and ``general expenses'' upon
    the approval of--
                (1) the Committee on Appropriations of the House of
            Representatives, in the case of amounts transferred
            from the appropriation provided to the Sergeant at Arms
            of the House of Representatives under the heading
            ``salaries'';
                (2) the Committee on Appropriations of the Senate,
            in the case of amounts transferred from the
            appropriation provided to the Sergeant at Arms and
            Doorkeeper of the Senate under the heading
            ``salaries''; and
                (3) the Committees on Appropriations of the Senate
            and the House of Representatives, in the case of other
            transfers.
        Sec. 107. (a) Appointment of Certifying Officers of the
    Capitol Police.--The Chief Administrative Officer of the United
    States Capitol Police, or when there is not a Chief
    Administrative Officer the Capitol Police Board, shall appoint
    certifying officers to certify all vouchers for payment from
    funds made available to the United States Capitol Police.
        (b) Responsibility and Accountability of Certifying
    Officers.--
                (1) In general.--Each officer or employee of the
            Capitol Police who has been duly authorized in writing
            by the Chief Administrative Officer, or the Capitol
            Police Board if there is not a Chief Administrative
            Officer, to certify vouchers pursuant to subsection (a)
            shall--
                        (A) be held responsible for the existence
                    and correctness of the facts recited in the
                    certificate or otherwise stated on the voucher
                    or its supporting papers and for the legality
                    of the proposed payment under the appropriation
                    or fund involved;
                        (B) be held responsible and accountable for
                    the correctness of the computations of
                    certified vouchers; and
                        (C) be held accountable for and required to
                    make good to the United States the amount of
                    any illegal, improper, or incorrect payment
                    resulting from any false, inaccurate, or
                    misleading certificate made by such officer or
                    employee, as well as for any payment prohibited
                    by law or which did not represent a legal
                    obligation under the appropriation or fund
                    involved.
                (2) Relief by comptroller general.--The Comptroller
            General may, at the Comptroller General's discretion,
            relieve such certifying officer or employee of
            liability for any payment otherwise proper if the
            Comptroller General finds--
                        (A) that the certification was based on
                    official records and that the certifying
                    officer or employee did not know, and by
                    reasonable diligence and inquiry could not have
                    ascertained, the actual facts; or
                        (B) that the obligation was incurred in
                    good faith, that the payment was not contrary
                    to any statutory provision specifically
                    prohibiting payments of the character involved,
                    and the United States has received value for
                    such payment.
        (c) Enforcement of Liability.--The liability of the
    certifying officers of the United States Capitol Police shall
    be enforced in the same manner and to the same extent as
    currently provided with respect to the enforcement of the
    liability of disbursing and other accountable officers, and
    such officers shall have the right to apply for and obtain a
    decision by the Comptroller General on any question of law
    involved in a payment on any vouchers presented to them for
    certification.
        Sec. 108. Chief Administrative Officer.--(a) There shall be
    within the Capitol Police an Office of Administration to be
    headed by a Chief Administrative Officer:
                (1) The Chief Administrative Officer shall be
            appointed by the Comptroller General after consultation
            with the Capitol Police Board, and shall report to and
            serve at the pleasure of the Comptroller General.
                (2) The Comptroller General shall appoint as Chief
            Administrative Officer an individual with the knowledge
            and skills necessary to carry out the responsibilities
            for budgeting, financial management, information
            technology, and human resource management described in
            this section.
                (3) The Chief Administrative Officer shall receive
            basic pay at a rate determined by the Comptroller
            General, but not to exceed the annual rate of basic pay
            payable for ES-2 of the Senior Executive Service Basic
            Rates Schedule established for members of the Senior
            Executive Service of the General Accounting Office
            under section 733 of title 31.
                (4) The Capitol Police shall reimburse from
            available appropriations any costs incurred by the
            General Accounting Office under this section.
        (b) The Chief Administrative Officer shall have the
    following areas of responsibility:
                (1) Budgeting.--The Chief Administrative Officer
            shall--
                        (A) after consulting with the Chief of
                    Police on the portion of the budget covering
                    uniformed police force personnel, prepare and
                    submit to the Capitol Police Board an annual
                    budget for the Capitol Police; and
                        (B) execute the budget and monitor through
                    periodic examinations the execution of the
                    Capitol Police budget in relation to actual
                    obligations and expenditures.
                (2) Financial management.--The Chief Administrative
            Officer shall--
                        (A) oversee all financial management
                    activities relating to the programs and
                    operations of the Capitol Police;
                        (B) develop and maintain an integrated
                    accounting and financial system for the Capitol
                    Police, including financial reporting and
                    internal controls, which--
                                (i) complies with applicable
                            accounting principles, standards, and
                            requirements, and internal control
                            standards;
                                (ii) complies with any other
                            requirements applicable to such
                            systems;
                                (iii) provides for--
                                        (I) complete, reliable,
                                    consistent, and timely
                                    information which is prepared
                                    on a uniform basis and which is
                                    responsive to financial
                                    information needs of the
                                    Capitol Police;
                                        (II) the development and
                                    reporting of cost information;
                                        (III) the integration of
                                    accounting and budgeting
                                    information; and
                                        (IV) the systematic
                                    measurement of performance;
                        (C) direct, manage, and provide policy
                    guidance and oversight of Capitol Police
                    financial management personnel, activities, and
                    operations, including--
                                (i) the recruitment, selection, and
                            training of personnel to carry out
                            Capitol Police financial management
                            functions; and
                                (ii) the implementation of Capitol
                            Police asset management systems,
                            including systems for cash management,
                            debt collection, and property and
                            inventory management and control; and
                        (D) the Chief Administrative Officer shall
                    prepare annual financial statements for the
                    Capitol Police and provide for an annual audit
                    of the financial statements by an independent
                    public accountant in accordance with generally
                    accepted government auditing standards.
                (3) Information technology.--The Chief
            Administrative Officer shall--
                        (A) direct, coordinate, and oversee the
                    acquisition, use, and management of information
                    technology by the Capitol Police;
                        (B) promote and oversee the use of
                    information technology to improve the
                    efficiency and effectiveness of programs of the
                    Capitol Police; and
                        (C) establish and enforce information
                    technology principles, guidelines, and
                    objectives, including developing and
                    maintaining an information technology
                    architecture for the Capitol Police.
                (4) Human resources.--The Chief Administrative
            Officer shall--
                        (A) direct, coordinate, and oversee human
                    resource management activities of the Capitol
                    Police, except that with respect to uniformed
                    police force personnel, the Chief
                    Administrative Officer shall perform these
                    activities in cooperation with the Chief of the
                    Capitol Police;
                        (B) develop and monitor payroll and time
                    and attendance systems and employee services;
                    and
                        (C) develop and monitor processes for
                    recruiting, selecting, appraising, and
                    promoting employees.
        (c) Administrative provisions with respect to the Office of
    Administration:
                (1) The Chief Administrative Officer is authorized
            to select, appoint, employ, and discharge such officers
            and employees as may be necessary to carry out the
            functions, powers, and duties of the Office of
            Administration but he shall not have the authority to
            hire or discharge uniformed police force personnel.
                (2) The Chief Administrative Officer may utilize
            resources of another agency on a reimbursable basis to
            be paid from available appropriations of the Capitol
            Police.
        (d) No later than 180 days after appointment, the Chief
    Administrative Officer shall prepare, after consultation with
    the Capitol Police Board and the Chief of the Capitol Police, a
    plan--
                (1) describing the policies, procedures, and
            actions the Chief Administrative Officer will take in
            carrying out the responsibilities assigned under this
            section;
                (2) identifying and defining responsibilities and
            roles of all offices, bureaus, and divisions of the
            Capitol Police for budgeting, financial management,
            information technology, and human resources management;
            and
                (3) detailing mechanisms for ensuring that the
            offices, bureaus, and divisions perform their
            responsibilities and roles in a coordinated and
            integrated manner.
        (e) No later than September 30, 2001, the Chief
    Administrative Officer shall prepare, after consultation with
    the Capitol Police Board and the Chief of the Capitol Police, a
    report on the Chief Administrative Officer's progress in
    implementing the plan described in subsection (d) and
    recommendations to improve the budgeting, financial,
    information technology, and human resources management of the
    Capitol Police, including organizational, accounting and
    administrative control, and personnel changes.
        (f) The Chief Administrative Officer shall submit the plan
    required in subsection (d) and the report required in
    subsection (e) to the Committees on Appropriations of the House
    of Representatives and of the Senate, the Committee on House
    Administration of the House of Representatives, and the
    Committee on Rules and Administration of the Senate.
        (g) As of October 1, 2002, unless otherwise determined by
    the Comptroller General, the Chief Administrative Officer
    established by section (a) will cease to be an employee of the
    General Accounting Office and will become an employee of the
    Capitol Police, and the Capitol Police Board shall assume all
    responsibilities of the Comptroller General under this section.
        Sec. 109. (a) Section 1(c) of Public Law 96-152 (40 U.S.C.
    206-1) is amended by striking ``the annual rate'' and all that
    follows and inserting the following: ``the rate of basic pay
    payable for level ES-4 of the Senior Executive Service, as
    established under subchapter VIII of chapter 53 of title 5,
    United States Code (taking into account any comparability
    payments made under section 5304(h) of such title).''.
        (b) The amendment made by subsection (a) shall apply with
    respect to pay periods beginning on or after the date of the
    enactment of this Act.

               Capitol Guide Service and Special Services Office

        For salaries and expenses of the Capitol Guide Service and
    Special Services Office, $2,371,000, to be disbursed by the
    Secretary of the Senate: Provided, That no part of such amount
    may be used to employ more than 43 individuals: Provided
    further, That the Capitol Guide Board is authorized, during
    emergencies, to employ not more than two additional individuals
    for not more than 120 days each, and not more than 10
    additional individuals for not more than 6 months each, for the
    Capitol Guide Service.

                          Statements of Appropriations

        For the preparation, under the direction of the Committees
    on Appropriations of the Senate and the House of
    Representatives, of the statements for the second session of
    the One Hundred Sixth Congress, showing appropriations made,
    indefinite appropriations, and contracts authorized, together
    with a chronological history of the regular appropriations
    bills as required by law, $30,000, to be paid to the persons
    designated by the chairmen of such committees to supervise the
    work.

                              OFFICE OF COMPLIANCE

                             Salaries and Expenses

        For salaries and expenses of the Office of Compliance, as
    authorized by section 305 of the Congressional Accountability
    Act of 1995 (2 U.S.C. 1385), $1,820,000.

                          CONGRESSIONAL BUDGET OFFICE

                             Salaries and Expenses

        For salaries and expenses necessary to carry out the
    provisions of the Congressional Budget Act of 1974 (Public Law
    93-344), including not more than $3,000 to be expended on the
    certification of the Director of the Congressional Budget
    Office in connection with official representation and reception
    expenses, $28,493,000: Provided, That no part of such amount
    may be used for the purchase or hire of a passenger motor
    vehicle.

                            Administrative Provision

        Sec. 110. Beginning on the date of enactment of this Act
    and hereafter, the Congressional Budget Office may use
    available funds to enter into contracts for the procurement of
    severable services for a period that begins in one fiscal year
    and ends in the next fiscal year and may enter into multi-year
    contracts for the acquisition of property and services, to the
    same extent as executive agencies under the authority of
    section 303L and 304B, respectively, of the Federal Property
    and Administrative Services Act (41 U.S.C. 253l and 254c).

                            ARCHITECT OF THE CAPITOL

                         Capitol Buildings and Grounds

                               capitol buildings

                             salaries and expenses

        For salaries for the Architect of the Capitol, the
    Assistant Architect of the Capitol, and other personal
    services, at rates of pay provided by law; for surveys and
    studies in connection with activities under the care of the
    Architect of the Capitol; for all necessary expenses for the
    maintenance, care and operation of the Capitol and electrical
    substations of the Senate and House office buildings under the
    jurisdiction of the Architect of the Capitol, including
    furnishings and office equipment, including not more than
    $1,000 for official reception and representation expenses, to
    be expended as the Architect of the Capitol may approve; for
    purchase or exchange, maintenance and operation of a passenger
    motor vehicle; and not to exceed $20,000 for attendance, when
    specifically authorized by the Architect of the Capitol, at
    meetings or conventions in connection with subjects related to
    work under the Architect of the Capitol, $43,689,000, of which
    $3,843,000 shall remain available until expended: Provided,
    That notwithstanding any other provision of law, such amount
    shall be available for the position of Project Manager for the
    Capitol Visitor Center, at a rate of compensation which does
    not exceed the rate of basic pay payable for level ES-2 of the
    Senior Executive Service, as established under subchapter VIII
    of chapter 53 of title 5, United States Code (taking into
    account any comparability payments made under section 5304(h)
    of such title): Provided further, That effective on the date of
    the enactment of this Act, any amount made available under this
    heading under the Legislative Branch Appropriations Act, 2000,
    shall be available for such position at such rate of
    compensation.

                                capitol grounds

        For all necessary expenses for care and improvement of
    grounds surrounding the Capitol, the Senate and House office
    buildings, and the Capitol Power Plant, $5,362,000, of which
    $125,000 shall remain available until expended.

                            senate office buildings

        For all necessary expenses for the maintenance, care and
    operation of Senate office buildings; and furniture and
    furnishings to be expended under the control and supervision of
    the Architect of the Capitol, $63,974,000, of which $21,669,000
    shall remain available until expended.

                             house office buildings

        For all necessary expenses for the maintenance, care and
    operation of the House office buildings, $32,750,000, of which
    $123,000 shall remain available until expended.

                              capitol power plant

        For all necessary expenses for the maintenance, care and
    operation of the Capitol Power Plant; lighting, heating, power
    (including the purchase of electrical energy) and water and
    sewer services for the Capitol, Senate and House office
    buildings, Library of Congress buildings, and the grounds about
    the same, Botanic Garden, Senate garage, and air conditioning
    refrigeration not supplied from plants in any of such
    buildings; heating the Government Printing Office and
    Washington City Post Office, and heating and chilled water for
    air conditioning for the Supreme Court Building, the Union
    Station complex, the Thurgood Marshall Federal Judiciary
    Building and the Folger Shakespeare Library, expenses for which
    shall be advanced or reimbursed upon request of the Architect
    of the Capitol and amounts so received shall be deposited into
    the Treasury to the credit of this appropriation, $39,415,000,
    of which $523,000 shall remain available until expended:
    Provided, That not more than $4,400,000 of the funds credited
    or to be reimbursed to this appropriation as herein provided
    shall be available for obligation during fiscal year 2001.

                              LIBRARY OF CONGRESS

                         Congressional Research Service

                             salaries and expenses

        For necessary expenses to carry out the provisions of
    section 203 of the Legislative Reorganization Act of 1946 (2
    U.S.C. 166) and to revise and extend the Annotated Constitution
    of the United States of America, $73,592,000: Provided, That no
    part of such amount may be used to pay any salary or expense in
    connection with any publication, or preparation of material
    therefor (except the Digest of Public General Bills), to be
    issued by the Library of Congress unless such publication has
    obtained prior approval of either the Committee on House
    Administration of the House of Representatives or the Committee
    on Rules and Administration of the Senate.

                           GOVERNMENT PRINTING OFFICE

                       Congressional Printing and Binding

                         (including transfer of funds)

        For authorized printing and binding for the Congress and
    the distribution of Congressional information in any format;
    printing and binding for the Architect of the Capitol; expenses
    necessary for preparing the semimonthly and session index to
    the Congressional Record, as authorized by law (44 U.S.C. 902);
    printing and binding of Government publications authorized by
    law to be distributed to Members of Congress; and printing,
    binding, and distribution of Government publications authorized
    by law to be distributed without charge to the recipient,
    $71,462,000: Provided, That this appropriation shall not be
    available for paper copies of the permanent edition of the
    Congressional Record for individual Representatives, Resident
    Commissioners or Delegates authorized under 44 U.S.C. 906:
    Provided further, That this appropriation shall be available
    for the payment of obligations incurred under the
    appropriations for similar purposes for preceding fiscal years:
    Provided further, That notwithstanding the 2-year limitation
    under section 718 of title 44, United States Code, none of the
    funds appropriated or made available under this Act or any
    other Act for printing and binding and related services
    provided to Congress under chapter 7 of title 44, United States
    Code, may be expended to print a document, report, or
    publication after the 27-month period beginning on the date
    that such document, report, or publication is authorized by
    Congress to be printed, unless Congress reauthorizes such
    printing in accordance with section 718 of title 44, United
    States Code: Provided further, That any unobligated or
    unexpended balances in this account or accounts for similar
    purposes for preceding fiscal years may be transferred to the
    Government Printing Office revolving fund for carrying out the
    purposes of this heading, subject to the approval of the
    Committees on Appropriations of the House of Representatives
    and Senate.

                            Administrative Provision

        Sec. 111. (a) Congressional Printing and Binding for the
    House Through Clerk of House.--
                (1) In general.--Notwithstanding any provision of
            title 44, United States Code, or any other law, there
            are authorized to be appropriated to the Clerk of the
            House of Representatives such sums as may be necessary
            for congressional printing and binding services for the
            House of Representatives.
                (2) Preparation of estimates.--Estimated
            expenditures and proposed appropriations for
            congressional printing and binding services shall be
            prepared and submitted by the Clerk of the House of
            Representatives in accordance with title 31, United
            States Code, in the same manner as estimates and
            requests are prepared for other legislative branch
            services under such title, except that such requests
            shall be based upon the results of the study conducted
            under subsection (b) (with respect to any fiscal year
            covered by such study).
                (3) Effective date.--This subsection shall apply
            with respect to fiscal year 2003 and each succeeding
            fiscal year.
        (b) Study.--
                (1) In general.--During fiscal year 2001, the Clerk
            of the House of Representatives shall conduct a
            comprehensive study of the needs of the House for
            congressional printing and binding services during
            fiscal year 2003 and succeeding fiscal years (including
            transitional issues during fiscal year 2002), and shall
            include in the study an analysis of the most cost-
            effective program or programs for providing printed or
            other media-based publications for House uses.
                (2) Submission to committees.--The Clerk shall
            submit the study conducted under paragraph (1) to the
            Committee on House Administration of the House of
            Representatives, who shall review the study and prepare
            such regulations or other materials (including
            proposals for legislation) as it considers appropriate
            to enable the Clerk to carry out congressional printing
            and binding services for the House in accordance with
            this section.
        (c) Definition.--In this section, the term ``congressional
    printing and binding services'' means the following services:
                (1) Authorized printing and binding for the
            Congress and the distribution of congressional
            information in any format.
                (2) Preparing the semimonthly and session index to
            the Congressional Record.
                (3) Printing and binding of Government publications
            authorized by law to be distributed to Members of
            Congress.
                (4) Printing, binding, and distribution of
            Government publications authorized by law to be
            distributed without charge to the recipient.
        This title may be cited as the ``Congressional Operations
    Appropriations Act, 2001''.

                            TITLE II--OTHER AGENCIES

                                 BOTANIC GARDEN

                             Salaries and Expenses

        For all necessary expenses for the maintenance, care and
    operation of the Botanic Garden and the nurseries, buildings,
    grounds, and collections; and purchase and exchange,
    maintenance, repair, and operation of a passenger motor
    vehicle; all under the direction of the Joint Committee on the
    Library, $3,328,000, of which $25,000 shall remain available
    until expended.

                              LIBRARY OF CONGRESS

                             Salaries and Expenses

        For necessary expenses of the Library of Congress not
    otherwise provided for, including development and maintenance
    of the Union Catalogs; custody and custodial care of the
    Library buildings; special clothing; cleaning, laundering and
    repair of uniforms; preservation of motion pictures in the
    custody of the Library; operation and maintenance of the
    American Folklife Center in the Library; preparation and
    distribution of catalog records and other publications of the
    Library; hire or purchase of one passenger motor vehicle; and
    expenses of the Library of Congress Trust Fund Board not
    properly chargeable to the income of any trust fund held by the
    Board, $282,838,000, of which not more than $6,500,000 shall be
    derived from collections credited to this appropriation during
    fiscal year 2001, and shall remain available until expended,
    under the Act of June 28, 1902 (chapter 1301; 32 Stat. 480; 2
    U.S.C. 150) and not more than $350,000 shall be derived from
    collections during fiscal year 2001 and shall remain available
    until expended for the development and maintenance of an
    international legal information database and activities related
    thereto: Provided, That the Library of Congress may not
    obligate or expend any funds derived from collections under the
    Act of June 28, 1902, in excess of the amount authorized for
    obligation or expenditure in appropriations Acts: Provided
    further, That the total amount available for obligation shall
    be reduced by the amount by which collections are less than the
    $6,850,000: Provided further, That of the total amount
    appropriated, $10,459,575 is to remain available until expended
    for acquisition of books, periodicals, newspapers, and all
    other materials including subscriptions for bibliographic
    services for the Library, including $40,000 to be available
    solely for the purchase, when specifically approved by the
    Librarian, of special and unique materials for additions to the
    collections: Provided further, That of the total amount
    appropriated, $2,506,000 is to remain available until expended
    for the acquisition and partial support for implementation of
    an Integrated Library System (ILS): Provided further, That of
    the total amount appropriated, $10,000,000 is to remain
    available until expended for salaries and expenses to carry out
    the Russian Leadership Program enacted on May 21, 1999 (113
    Stat. 93 et seq.): Provided further, That of the total amount
    appropriated, $5,957,800 is to remain available until expended
    for the purpose of teaching educators how to incorporate the
    Library's digital collections into school curricula, which
    amount shall be transferred to the educational consortium
    formed to conduct the ``Joining Hands Across America: Local
    Community Initiative'' project as approved by the Library:
    Provided further, That of the total amount appropriated,
    $404,000 is to remain available until expended for a
    collaborative digitization and telecommunications project with
    the United States Military Academy and any remaining balance is
    available for other Library purposes: Provided further, That of
    the total amount appropriated, $4,300,000 is to remain
    available until expended for the purpose of developing a high
    speed data transmission between the Library of Congress and
    educational facilities, libraries, or networks serving western
    North Carolina, and any remaining balance is available for
    support of the Library's Digital Futures initiative.

                                Copyright Office

                             salaries and expenses

        For necessary expenses of the Copyright Office,
    $38,523,000, of which not more than $23,500,000, to remain
    available until expended, shall be derived from collections
    credited to this appropriation during fiscal year 2001 under 17
    U.S.C. 708(d): Provided, That the Copyright Office may not
    obligate or expend any funds derived from collections under 17
    U.S.C. 708(d), in excess of the amount authorized for
    obligation or expenditure in appropriations Acts: Provided
    further, That not more than $5,783,000 shall be derived from
    collections during fiscal year 2001 under 17 U.S.C. 111(d)(2),
    119(b)(2), 802(h), and 1005: Provided further, That the total
    amount available for obligation shall be reduced by the amount
    by which collections are less than $29,283,000: Provided
    further, That not more than $100,000 of the amount appropriated
    is available for the maintenance of an ``International
    Copyright Institute'' in the Copyright Office of the Library of
    Congress for the purpose of training nationals of developing
    countries in intellectual property laws and policies: Provided
    further, That not more than $4,250 may be expended, on the
    certification of the Librarian of Congress, in connection with
    official representation and reception expenses for activities
    of the International Copyright Institute and for copyright
    delegations, visitors, and seminars.

                 Books for the Blind and Physically Handicapped

                             salaries and expenses

        For salaries and expenses to carry out the Act of March 3,
    1931 (chapter 400; 46 Stat. 1487; 2 U.S.C. 135a), $48,609,000,
    of which $14,154,000 shall remain available until expended.

                           Furniture and Furnishings

        For necessary expenses for the purchase, installation,
    maintenance, and repair of furniture, furnishings, office and
    library equipment, $4,892,000.

                           Administrative Provisions

        Sec. 201. Appropriations in this Act available to the
    Library of Congress shall be available, in an amount of not
    more than $199,630, of which $59,300 is for the Congressional
    Research Service, when specifically authorized by the Librarian
    of Congress, for attendance at meetings concerned with the
    function or activity for which the appropriation is made.
        Sec. 202. (a) No part of the funds appropriated in this Act
    shall be used by the Library of Congress to administer any
    flexible or compressed work schedule which--
                (1) applies to any manager or supervisor in a
            position the grade or level of which is equal to or
            higher than GS-15; and
                (2) grants such manager or supervisor the right to
            not be at work for all or a portion of a workday
            because of time worked by the manager or supervisor on
            another workday.
        (b) For purposes of this section, the term ``manager or
    supervisor'' means any management official or supervisor, as
    such terms are defined in section 7103(a)(10) and (11) of title
    5, United States Code.
        Sec. 203. Appropriated funds received by the Library of
    Congress from other Federal agencies to cover general and
    administrative overhead costs generated by performing
    reimbursable work for other agencies under the authority of
    sections 1535 and 1536 of title 31, United States Code, shall
    not be used to employ more than 65 employees and may be
    expended or obligated--
                (1) in the case of a reimbursement, only to such
            extent or in such amounts as are provided in
            appropriations Acts; or
                (2) in the case of an advance payment, only--
                        (A) to pay for such general or
                    administrative overhead costs as are
                    attributable to the work performed for such
                    agency; or
                        (B) to such extent or in such amounts as
                    are provided in appropriations Acts, with
                    respect to any purpose not allowable under
                    subparagraph (A).
        Sec. 204. Of the amounts appropriated to the Library of
    Congress in this Act, not more than $5,000 may be expended, on
    the certification of the Librarian of Congress, in connection
    with official representation and reception expenses for the
    incentive awards program.
        Sec. 205. Of the amount appropriated to the Library of
    Congress in this Act, not more than $12,000 may be expended, on
    the certification of the Librarian of Congress, in connection
    with official representation and reception expenses for the
    Overseas Field Offices.
        Sec. 206. (a) For fiscal year 2001, the obligational
    authority of the Library of Congress for the activities
    described in subsection (b) may not exceed $92,845,000.
        (b) The activities referred to in subsection (a) are
    reimbursable and revolving fund activities that are funded from
    sources other than appropriations to the Library in
    appropriations Acts for the legislative branch.
        Sec. 207. Section 1 of the Act entitled ``An Act to
    authorize acquisition of certain real property for the Library
    of Congress, and for other purposes'', approved December 15,
    1997 (2 U.S.C. 141 note) is amended by adding at the end the
    following new subsection:
        ``(c) Transfer Payment by Architect.--Notwithstanding the
    limitation on reimbursement or transfer of funds under
    subsection (a) of this section, the Architect of the Capitol
    may, not later than 90 days after acquisition of the property
    under this section, transfer funds to the entity from which the
    property was acquired by the Architect of the Capitol. Such
    transfers may not exceed a total of $16,500,000.''.
        Sec. 208. The Librarian of Congress may convert to
    permanent positions 84 indefinite, time-limited positions in
    the National Digital Library Program authorized in the
    Legislative Branch Appropriations Act, 1996 for the Library of
    Congress under the heading, ``Salaries and Expenses'' (Public
    Law 104-53). Notwithstanding any other provision of law
    regarding qualifications and methods of appointment of
    employees of the Library of Congress, the Librarian may fill
    these permanent positions through the non-competitive
    conversion of the incumbents in the ``indefinite-not-to-
    exceed'' positions to ``permanent'' positions.
        Sec. 209. (a) In addition to any other transfer authority
    provided by law, during fiscal year 2001 and fiscal years
    thereafter, the Librarian of Congress may transfer to and among
    available accounts of the Library of Congress amounts
    appropriated to the Librarian from funds for the purchase,
    installation, maintenance, and repair of furniture,
    furnishings, and office and library equipment.
        (b) Any amounts transferred pursuant to subsection (a)
    shall be merged with and be available for the same purpose and
    for the same period as the appropriation or account to which
    such amounts are transferred.
        (c) The Librarian may transfer amounts pursuant to
    subsection (a) only with the approval of the Committees on
    Appropriations of the House of Representatives and Senate.
        Sec. 210. (a)(1) This subsection shall apply to any
    individual who--
                (A) is employed by the Library of Congress Child
            Development Center (known as the ``Little Scholars
            Child Development Center'', in this section referred to
            as the ``Center'') established under section 205(g)(1)
            of the Legislative Branch Appropriations Act, 1991; and
                (B) makes an election to be covered by this
            subsection with the Librarian of Congress, not later
            than the later of--
                        (i) 60 days after the date of enactment of
                    this Act; or
                        (ii) 60 days after the date the individual
                    begins such employment.
        (2)(A) Any individual described under paragraph (1) may be
    credited, under section 8411 of title 5, United States Code,
    for service as an employee of the Center before the date of
    enactment of this Act, if such employee makes a payment of the
    deposit under section 8411(f )(2) of such title without
    application of section 8411(b)(3) of such title.
        (B) An individual described under paragraph (1) shall be
    credited under section 8411 of title 5, United States Code, for
    any service as an employee of the Center on or after the date
    of enactment of this Act, if such employee has such amounts
    deducted and withheld from his pay as determined by the Office
    of Personnel Management which would be deducted and withheld
    from the basic pay of an employee under section 8422 of title
    5, United States Code.
        (3) Notwithstanding any other provision of this subsection,
    any service performed by an individual described under
    paragraph (1) as an employee of the Center is deemed to be
    civilian service creditable under section 8411 of title 5,
    United States Code, for purposes of qualifying for survivor
    annuities and disability benefits under subchapters IV and V of
    chapter 84 of such title, if such individual makes payment of
    an amount, determined by the Office of Personnel Management,
    which would have been deducted and withheld from the basic pay
    of such individual if such individual had been an employee
    subject to section 8422 of title 5, United States Code, for
    such period so credited, together with interest thereon.
        (4) An individual described under paragraph (1) shall be
    deemed an employee for purposes of chapter 84 of title 5,
    United States Code, including subchapter III of such title, and
    may make contributions under section 8432 of such title
    effective for the first applicable pay period beginning on or
    after the date such individual elects coverage under this
    section.
        (5) The Office of Personnel Management shall accept the
    certification of the Librarian of Congress concerning
    creditable service for purposes of this subsection.
        (b) Any individual who is employed by the Center on or
    after the date of enactment of this Act shall be deemed an
    employee under section 8901(1) of title 5, United States Code,
    for purposes of health insurance coverage under chapter 89 of
    such title. An individual who is an employee of the Center on
    the date of enactment of this Act may elect coverage under this
    subsection before the 60th day after the date of enactment of
    this Act, and during such periods as determined by the Office
    of Personnel Management for employees of the Center employed
    after such date.
        (c) An individual who is employed by the Center shall be
    deemed an employee under section 8701(a) of title 5, United
    States Code, for purposes of life insurance coverage under
    chapter 87 of such title.
        (d) Government contributions for individuals receiving
    benefits under this section, as computed under sections 8423,
    8432, 8708, and 8906 shall be made by the Librarian of Congress
    from any appropriations available to the Library of Congress.
        (e) The Library of Congress, directly or by agreement with
    its designated representative, shall--
                (1) process payroll for Center employees, including
            making deductions and withholdings from the pay of
            employees in the amounts determined under sections
            8422, 8432, 8707, and 8905 of title 5, United States
            Code;
                (2) maintain appropriate personnel and payroll
            records for Center employees, and transmit appropriate
            information and records to the Office of Personnel
            Management; and
                (3) transmit funds for Government and employee
            contributions under this section to the Office of
            Personnel Management.
        (f ) The Center shall--
                (1) pay to the Library of Congress funds sufficient
            to cover the gross salary and the employer's share of
            taxes under section 3111 of the Internal Revenue Code
            of 1986 for Center employees, in amounts computed by
            the Library of Congress;
                (2) as required by the Library of Congress,
            reimburse the Library of Congress for reasonable
            administrative costs incurred under subsection (e)(1);
                (3) comply with regulations and procedures
            prescribed by the Librarian of Congress for
            administration of this section;
                (4) maintain appropriate records on all Center
            employees, as required by the Librarian of Congress;
            and
                (5) consult with the Librarian of Congress on the
            administration and implementation of this section.
        (g) The Librarian of Congress may prescribe regulations to
    carry out this section.

                            ARCHITECT OF THE CAPITOL

                         Library Buildings and Grounds

                         structural and mechanical care

        For all necessary expenses for the mechanical and
    structural maintenance, care and operation of the Library
    buildings and grounds, $15,970,000, of which $5,000,000 shall
    remain available until expended.

                           GOVERNMENT PRINTING OFFICE

                     Office of Superintendent of Documents

                             salaries and expenses

                         (including transfer of funds)

        For expenses of the Office of Superintendent of Documents
    necessary to provide for the cataloging and indexing of
    Government publications and their distribution to the public,
    Members of Congress, other Government agencies, and designated
    depository and international exchange libraries as authorized
    by law, $27,954,000: Provided, That travel expenses, including
    travel expenses of the Depository Library Council to the Public
    Printer, shall not exceed $175,000: Provided further, That
    amounts of not more than $2,000,000 from current year
    appropriations are authorized for producing and disseminating
    Congressional serial sets and other related publications for
    1999 and 2000 to depository and other designated libraries:
    Provided further, That any unobligated or unexpended balances
    in this account or accounts for similar purposes for preceding
    fiscal years may be transferred to the Government Printing
    Office revolving fund for carrying out the purposes of this
    heading, subject to the approval of the Committees on
    Appropriations of the House of Representatives and Senate.

                   Government Printing Office Revolving Fund

        The Government Printing Office is hereby authorized to make
    such expenditures, within the limits of funds available and in
    accord with the law, and to make such contracts and commitments
    without regard to fiscal year limitations as provided by
    section 9104 of title 31, United States Code, as may be
    necessary in carrying out the programs and purposes set forth
    in the budget for the current fiscal year for the Government
    Printing Office revolving fund: Provided, That not more than
    $2,500 may be expended on the certification of the Public
    Printer in connection with official representation and
    reception expenses: Provided further, That the revolving fund
    shall be available for the hire or purchase of not more than 12
    passenger motor vehicles: Provided further, That expenditures
    in connection with travel expenses of the advisory councils to
    the Public Printer shall be deemed necessary to carry out the
    provisions of title 44, United States Code: Provided further,
    That the revolving fund shall be available for temporary or
    intermittent services under section 3109(b) of title 5, United
    States Code, but at rates for individuals not more than the
    daily equivalent of the annual rate of basic pay for level V of
    the Executive Schedule under section 5316 of such title:
    Provided further, That the revolving fund and the funds
    provided under the headings ``Office of Superintendent of
    Documents'' and ``salaries and expenses'' together may not be
    available for the full-time equivalent employment of more than
    3,285 workyears (or such other number of workyears as the
    Public Printer may request, subject to the approval of the
    Committees on Appropriations of the Senate and the House of
    Representatives): Provided further, That activities financed
    through the revolving fund may provide information in any
    format: Provided further, That the revolving fund shall not be
    used to administer any flexible or compressed work schedule
    which applies to any manager or supervisor in a position the
    grade or level of which is equal to or higher than GS-15:
    Provided further, That expenses for attendance at meetings
    shall not exceed $75,000.

                           GENERAL ACCOUNTING OFFICE

                             Salaries and Expenses

        For necessary expenses of the General Accounting Office,
    including not more than $10,000 to be expended on the
    certification of the Comptroller General of the United States
    in connection with official representation and reception
    expenses; temporary or intermittent services under section
    3109(b) of title 5, United States Code, but at rates for
    individuals not more than the daily equivalent of the annual
    rate of basic pay for level IV of the Executive Schedule under
    section 5315 of such title; hire of one passenger motor
    vehicle; advance payments in foreign countries in accordance
    with section 3324 of title 31, United States Code; benefits
    comparable to those payable under sections 901(5), 901(6), and
    901(8) of the Foreign Service Act of 1980 (22 U.S.C. 4081(5),
    4081(6), and 4081(8)); and under regulations prescribed by the
    Comptroller General of the United States, rental of living
    quarters in foreign countries, $384,867,000: Provided, That not
    more than $1,900,000 of payments received under 31 U.S.C. 782
    shall be available for use in fiscal year 2001: Provided
    further, That not more than $1,100,000 of reimbursements
    received under 31 U.S.C. 9105 shall be available for use in
    fiscal year 2001: Provided further, That this appropriation and
    appropriations for administrative expenses of any other
    department or agency which is a member of the National
    Intergovernmental Audit Forum or a Regional Intergovernmental
    Audit Forum shall be available to finance an appropriate share
    of either Forum's costs as determined by the respective Forum,
    including necessary travel expenses of non-Federal
    participants. Payments hereunder to the Forum may be credited
    as reimbursements to any appropriation from which costs
    involved are initially financed: Provided further, That this
    appropriation and appropriations for administrative expenses of
    any other department or agency which is a member of the
    American Consortium on International Public Administration
    (ACIPA) shall be available to finance an appropriate share of
    ACIPA costs as determined by the ACIPA, including any expenses
    attributable to membership of ACIPA in the International
    Institute of Administrative Sciences.

                         TITLE III--GENERAL PROVISIONS

        Sec. 301. No part of the funds appropriated in this Act
    shall be used for the maintenance or care of private vehicles,
    except for emergency assistance and cleaning as may be provided
    under regulations relating to parking facilities for the House
    of Representatives issued by the Committee on House
    Administration and for the Senate issued by the Committee on
    Rules and Administration.
        Sec. 302. No part of the funds appropriated in this Act
    shall remain available for obligation beyond fiscal year 2001
    unless expressly so provided in this Act.
        Sec. 303. Whenever in this Act any office or position not
    specifically established by the Legislative Pay Act of 1929 is
    appropriated for or the rate of compensation or designation of
    any office or position appropriated for is different from that
    specifically established by such Act, the rate of compensation
    and the designation in this Act shall be the permanent law with
    respect thereto: Provided, That the provisions in this Act for
    the various items of official expenses of Members, officers,
    and committees of the Senate and House of Representatives, and
    clerk hire for Senators and Members of the House of
    Representatives shall be the permanent law with respect
    thereto.
        Sec. 304. The expenditure of any appropriation under this
    Act for any consulting service through procurement contract,
    pursuant to section 3109 of title 5, United States Code, shall
    be limited to those contracts where such expenditures are a
    matter of public record and available for public inspection,
    except where otherwise provided under existing law, or under
    existing Executive order issued pursuant to existing law.
        Sec. 305. (a) It is the sense of the Congress that, to the
    greatest extent practicable, all equipment and products
    purchased with funds made available in this Act should be
    American-made.
        (b) In providing financial assistance to, or entering into
    any contract with, any entity using funds made available in
    this Act, the head of each Federal agency, to the greatest
    extent practicable, shall provide to such entity a notice
    describing the statement made in subsection (a) by the
    Congress.
        (c) If it has been finally determined by a court or Federal
    agency that any person intentionally affixed a label bearing a
    ``Made in America'' inscription, or any inscription with the
    same meaning, to any product sold in or shipped to the United
    States that is not made in the United States, such person shall
    be ineligible to receive any contract or subcontract made with
    funds provided pursuant to this Act, pursuant to the debarment,
    suspension, and ineligibility procedures described in section
    9.400 through 9.409 of title 48, Code of Federal Regulations.
        Sec. 306. Such sums as may be necessary are appropriated to
    the account described in subsection (a) of section 415 of
    Public Law 104-1 to pay awards and settlements as authorized
    under such subsection.
        Sec. 307. Amounts available for administrative expenses of
    any legislative branch entity which participates in the
    Legislative Branch Financial Managers Council (LBFMC)
    established by charter on March 26, 1996, shall be available to
    finance an appropriate share of LBFMC costs as determined by
    the LBFMC, except that the total LBFMC costs to be shared among
    all participating legislative branch entities (in such
    allocations among the entities as the entities may determine)
    may not exceed $252,000.
        Sec. 308. No part of any appropriation contained in this
    Act under the heading ``Architect of the Capitol'' or ``Botanic
    Garden'' shall be obligated or expended for a construction
    contract in excess of $100,000, unless such contract includes a
    provision that requires liquidated damages for contractor
    caused delay in an amount commensurate with the daily net
    usable square foot cost of leasing similar space in a first
    class office building within two miles of the United States
    Capitol multiplied by the square footage to be constructed
    under the contract.
        Sec. 309. Section 316 of Public Law 101-302 is amended in
    the first sentence of subsection (a) by striking ``2000'' and
    inserting ``2001''.
        Sec. 310. Russian Leadership Program. Section 3011 of the
    1999 Emergency Supplemental Appropriations Act (Public Law 106-
    31; 113 Stat. 93) is amended--
                (1) by striking ``fiscal years 1999 and 2000'' in
            subsections (a)(1), (b)(4)(B), (d)(3), and (h)(1)(A)
            and inserting ``fiscal years 2000 and 2001''; and
                (2) by striking ``2001'' in subsection (a)(2),
            (e)(1), and (h)(1)(B) and inserting ``2002''.
        Sec. 311. (a)(1) Any State may request the Joint Committee
    on the Library of Congress to approve the replacement of a
    statue the State has provided for display in Statuary Hall in
    the Capitol of the United States under section 1814 of the
    Revised Statutes (40 U.S.C. 187).
        (2) A request shall be considered under paragraph (1) only
    if--
                (A) the request has been approved by a resolution
            adopted by the legislature of the State and the request
            has been approved by the Governor of the State, and
                (B) the statue to be replaced has been displayed in
            the Capitol of the United States for at least 10 years
            as of the time the request is made, except that the
            Joint Committee may waive this requirement for cause at
            the request of a State.
        (b) If the Joint Committee on the Library of Congress
    approves a request under subsection (a), the Architect of the
    Capitol shall enter into an agreement with the State to carry
    out the replacement in accordance with the request and any
    conditions the Joint Committee may require for its approval.
    Such agreement shall provide that--
                (1) the new statue shall be subject to the same
            conditions and restrictions as apply to any statue
            provided by a State under section 1814 of the Revised
            Statutes (40 U.S.C. 187), and
                (2) the State shall pay any costs related to the
            replacement, including costs in connection with the
            design, construction, transportation, and placement of
            the new statue, the removal and transportation of the
            statue being replaced, and any unveiling ceremony.
        (c) Nothing in this section shall be interpreted to permit
    a State to have more than 2 statues on display in the Capitol
    of the United States.
        (d)(1) Subject to the approval of the Joint Committee on
    the Library, ownership of any statue replaced under this
    section shall be transferred to the State.
        (2) If any statue is removed from the Capitol of the United
    States as part of a transfer of ownership under paragraph (1),
    then it may not be returned to the Capitol for display unless
    such display is specifically authorized by Federal law.
        (e) The Architect of the Capitol, upon the approval of the
    Joint Committee on the Library and with the advice of the
    Commission of Fine Arts as requested, is authorized and
    directed to relocate within the United States Capitol any of
    the statues received from the States under section 1814 of the
    Revised Statutes (40 U.S.C. 187) prior to the date of the
    enactment of this Act, and to provide for the reception,
    location, and relocation of the statues received hereafter from
    the States under such section.
        Sec. 312. (a) Section 201 of the Legislative Branch
    Appropriations Act, 1993 (40 U.S.C. 216c note) is amended by
    striking ``$10,000,000'' each place it appears and inserting
    ``$14,500,000''.
        (b) Section 201 of such Act is amended--
                (1) by inserting ``(a)'' before ``Pursuant'', and
                (2) by adding at the end the following:
        ``(b) The Architect of the Capitol is authorized to
    solicit, receive, accept, and hold amounts under section
    307E(a)(2) of the Legislative Branch Appropriations Act, 1989
    (40 U.S.C. 216c(a)(2)) in excess of the $14,500,000 authorized
    under subsection (a), but such amounts (and any interest
    thereon) shall not be expended by the Architect without
    approval in appropriation Acts as required under section
    307E(b)(3) of such Act (40 U.S.C. 216c(b)(3)).''.
        Sec. 313. Center for Russian Leadership Development. (a)
    Establishment.--
                (1) In general.--There is established in the
            legislative branch of the Government a center to be
            known as the ``Center for Russian Leadership
            Development'' (the ``Center'').
                (2) Board of trustees.--The Center shall be subject
            to the supervision and direction of a Board of Trustees
            which shall be composed of 9 members as follows:
                        (A) 2 members appointed by the Speaker of
                    the House of Representatives, 1 of whom shall
                    be designated by the Majority Leader of the
                    House of Representatives and 1 of whom shall be
                    designated by the Minority Leader of the House
                    of Representatives.
                        (B) 2 members appointed by the President
                    pro tempore of the Senate, 1 of whom shall be
                    designated by the Majority Leader of the Senate
                    and 1 of whom shall be designated by the
                    Minority Leader of the Senate.
                        (C) The Librarian of Congress.
                        (D) 4 private individuals with interests in
                    improving United States and Russian relations,
                    designated by the Librarian of Congress.
            Each member appointed under this paragraph shall serve
            for a term of 3 years. Any vacancy shall be filled in
            the same manner as the original appointment and the
            individual so appointed shall serve for the remainder
            of the term. Members of the Board shall serve without
            pay, but shall be entitled to reimbursement for travel,
            subsistence, and other necessary expenses incurred in
            the performance of their duties.
        (b) Purpose and Authority of the Center.--
                (1) Purpose.--The purpose of the Center is to
            establish, in accordance with the provisions of
            paragraph (2), a program to enable emerging political
            leaders of Russia at all levels of government to gain
            significant, firsthand exposure to the American free
            market economic system and the operation of American
            democratic institutions through visits to governments
            and communities at comparable levels in the United
            States.
                (2) Grant program.--Subject to the provisions of
            paragraphs (3) and (4), the Center shall establish a
            program under which the Center annually awards grants
            to government or community organizations in the United
            States that seek to establish programs under which
            those organizations will host Russian nationals who are
            emerging political leaders at any level of government.
                (3) Restrictions.--
                        (A) Duration.--The period of stay in the
                    United States for any individual supported with
                    grant funds under the program shall not exceed
                    30 days.
                        (B) Limitation.--The number of individuals
                    supported with grant funds under the program
                    shall not exceed 3,000 in any fiscal year.
                        (C) Use of funds.--Grant funds under the
                    program shall be used to pay--
                                (i) the costs and expenses incurred
                            by each program participant in
                            traveling between Russia and the United
                            States and in traveling within the
                            United States;
                                (ii) the costs of providing lodging
                            in the United States to each program
                            participant, whether in public
                            accommodations or in private homes; and
                                (iii) such additional
                            administrative expenses incurred by
                            organizations in carrying out the
                            program as the Center may prescribe.
                (4) Application.--
                        (A) In general.--Each organization in the
                    United States desiring a grant under this
                    section shall submit an application to the
                    Center at such time, in such manner, and
                    accompanied by such information as the Center
                    may reasonably require.
                        (B) Contents.--Each application submitted
                    pursuant to subparagraph (A) shall--
                                (i) describe the activities for
                            which assistance under this section is
                            sought;
                                (ii) include the number of program
                            participants to be supported;
                                (iii) describe the qualifications
                            of the individuals who will be
                            participating in the program; and
                                (iv) provide such additional
                            assurances as the Center determines to
                            be essential to ensure compliance with
                            the requirements of this section.
        (c) Establishment of Fund.--
                (1) In general.--There is established in the
            Treasury of the United States a trust fund to be known
            as the ``Russian Leadership Development Center Trust
            Fund'' (the ``Fund'') which shall consist of amounts
            which may be appropriated, credited, or transferred to
            it under this section.
                (2) Donations.--Any money or other property
            donated, bequeathed, or devised to the Center under the
            authority of this section shall be credited to the
            Fund.
                (3) Fund management.--
                        (A) In general.--The provisions of
                    subsections (b), (c), and (d) of section 116 of
                    the Legislative Branch Appropriations Act, 1989
                    (2 U.S.C. 1105 (b), (c), and (d)), and the
                    provisions of section 117(b) of such Act (2
                    U.S.C. 1106(b)), shall apply to the Fund.
                        (B) Expenditures.--The Secretary of the
                    Treasury is authorized to pay to the Center
                    from amounts in the Fund such sums as the Board
                    of Trustees of the Center determines are
                    necessary and appropriate to enable the Center
                    to carry out the provisions of this section.
        (d) Executive Director.--The Board shall appoint an
    Executive Director who shall be the chief executive officer of
    the Center and who shall carry out the functions of the Center
    subject to the supervision and direction of the Board of
    Trustees. The Executive Director of the Center shall be
    compensated at the annual rate specified by the Board, but in
    no event shall such rate exceed level III of the Executive
    Schedule under section 5314 of title 5, United States Code.
        (e) Administrative Provisions.--
                (1) In general.--The provisions of section 119 of
            the Legislative Branch Appropriations Act, 1989 (2
            U.S.C. 1108) shall apply to the Center.
                (2) Support provided by library of congress.--The
            Library of Congress may disburse funds appropriated to
            the Center, compute and disburse the basic pay for all
            personnel of the Center, provide administrative, legal,
            financial management, and other appropriate services to
            the Center, and collect from the Fund the full costs of
            providing services under this paragraph, as provided
            under an agreement for services ordered under sections
            1535 and 1536 of title 31, United States Code.
        (f ) Authorization of Appropriations.--There are authorized
    to be appropriated such sums as may be necessary to carry out
    this section.
        (g) Transfer of Funds.--Any amounts appropriated for use in
    the program established under section 3011 of the 1999
    Emergency Supplemental Appropriations Act (Public Law 106-31;
    113 Stat. 93) shall be transferred to the Fund and shall remain
    available without fiscal year limitation.
        (h) Effective Dates.--
                (1) In general.--This section shall take effect on
            the date of enactment of this Act.
                (2) Transfer.--Subsection (g) shall only apply to
            amounts which remain unexpended on and after the date
            the Board of Trustees of the Center certifies to the
            Librarian of Congress that grants are ready to be made
            under the program established under this section.
        Sec. 314. Review of Proposed Changes to Export Thresholds
    for Computers. Not more than 50 days after the date of the
    submission of the report referred to in subsection (d) of
    section 1211 of the National Defense Authorization Act for
    Fiscal Year 1998 (50 U.S.C. App. 2404 note), the Comptroller
    General of the United States shall submit an assessment to
    Congress which contains an analysis of the new computer
    performance levels being proposed by the President under such
    section.

        TITLE IV--EMERGENCY FISCAL YEAR 2000 SUPPLEMENTAL APPROPRIATIONS

        The following sums are appropriated out of any money in the
    Treasury not otherwise appropriated, to provide additional
    emergency supplemental appropriations for the Legislative
    Branch for the fiscal year ending September 30, 2000, and for
    other purposes, namely:

                              Capitol Police Board

                             security enhancements

        For an additional amount for the Capitol Police Board for
    costs associated with security enhancements, under the terms
    and conditions of chapter 5 of title II of division B of the
    Omnibus Consolidated and Emergency Supplemental Appropriations
    Act, 1999 (Public Law 105-277), $2,102,000, to remain available
    until expended, of which--
                (1) $228,000 shall be for the acquisition and
            installation of card readers for 4 additional access
            points which are not currently funded under the
            implementation of the security enhancement plan; and
                (2) $1,874,000 shall be for security enhancements
            to the buildings and grounds of the Library of
            Congress:
    Provided, That the entire amount is designated by Congress as
    an emergency requirement pursuant to section 251(b)(2)(A) of
    the Balanced Budget and Emergency Deficit Control Act of 1985,
    as amended: Provided further, That the entire amount shall be
    available only to the extent an official budget request for a
    specific dollar amount that includes designation of the entire
    amount of the request as an emergency requirement as defined in
    the Balanced Budget and Emergency Deficit Control Act of 1985,
    as amended, is transmitted by the President to the Congress.

                            ARCHITECT OF THE CAPITOL

                         Capitol Buildings and Grounds

                             house office buildings

        For an additional amount for necessary expenses for urgent
    repairs to the underground garage in the Cannon House Office
    Building, $9,000,000, to remain available until expended:
    Provided, That the entire amount is designated by the Congress
    as an emergency requirement pursuant to section 251(b)(2)(A) of
    the Balanced Budget and Emergency Deficit Control Act of 1985,
    as amended: Provided further, That the entire amount shall be
    available only to the extent an official budget request for a
    specific dollar amount that includes designation of the entire
    amount of the request as an emergency requirement as defined in
    the Balanced Budget and Emergency Deficit Control Act of 1985,
    as amended, is transmitted by the President to the Congress.

                  DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

                         Federal Housing Administration

                 fha--general and special risk program account

        For an additional amount for FHA--General and special risk
    program account for the cost of guaranteed loans, as authorized
    by sections 238 and 519 of the National Housing Act (12 U.S.C.
    1715z-3 and 1735c), including the cost of loan modifications
    (as that term is defined in section 502 of the Congressional
    Budget Act of 1974, as amended), $40,000,000, to remain
    available until expended: Provided, That the entire amount
    shall be available only to the extent an official budget
    request, that includes designation of the entire amount of the
    request as an emergency requirement as defined in the Balanced
    Budget and Emergency Deficit Control Act of 1985, as amended,
    is transmitted by the President to the Congress: Provided
    further, That the entire amount is designated by the Congress
    as an emergency requirement pursuant to section 251(b)(2)(A) of
    the Balanced Budget and Emergency Deficit Control Act: Provided
    further, That the funding under this heading shall only be made
    available upon the submission of a certification by the
    Secretary of Housing and Urban Development to the Committees on
    Appropriations that all funds committed, expended, or obligated
    under this heading in the Departments of Veterans Affairs and
    Housing and Urban Development, Independent Agencies
    Appropriations Act, 2000 were committed, expended or obligated
    in compliance with the Antideficiency Act (31 U.S.C. 1341).
        Sec. 401. Appropriations made by this title are available
    immediately upon enactment of this Act.
        This Act may be cited as the ``Legislative Branch
    Appropriations Act, 2001''.

                       LEGISLATIVE BRANCH APPROPRIATIONS

          Following is explanatory language on H.R. 5657, as
    introduced on December 14, 2000.
          The conferees on H.R. 4577 agree with the matter included
    in H.R. 5657 and enacted in this conference report by reference
    and the following description. This bill was developed through
    negotiations by conferees on the differences in H.R. 4516.
    References in the following description to the ``conference
    agreement'' mean the matter included in the introduced bill
    enacted by this conference report. References to the House bill
    mean the House passed version of H.R. 4516. References to the
    Senate bill or Senate amendment mean the Senate reported
    version of H.R. 4516.

                       legislative branch appropriations

          Many items in both House and Senate Legislative Branch
    Appropriations bills are identical and are included in the
    conference agreement without change. The conferees have
    endorsed statements or policy contained in the House and Senate
    reports accompanying the appropriations bills, unless amended
    or restated herein. The conferees have agreed to drop without
    prejudice the direction in the House report under the heading,
    Information Security, subsumed under ``LEGISLATIVE BRANCH WIDE
    MATTERS''. With respect to those items in the conference
    agreement that differ between House and Senate bills, the
    conferees have agreed to the following with the appropriate
    section numbers, punctuation, and other technical corrections:

                       TITLE I--CONGRESSIONAL OPERATIONS

                                     Senate

          Appropriates $506,797,300 for Senate operations, and
    includes, at the request of the managers on the part of the
    Senate, an amendment adding $250,000, an amendment containing
    the traditional death gratuity upon the death of a Senator, and
    an amendment to Section 8. Inasmuch as this item relates solely
    to the Senate, and in accord with long practice under which
    each body determines its own housekeeping requirements and the
    other concurs without intervention, the managers on the part of
    the House, at the request of the managers on the part of the
    Senate, have receded to the Senate.

                            House of Representatives

          At the request of the managers on the part of the House,
    an enrollment error in the House bill has been corrected and an
    administrative provision has been added to provide funds for a
    special education need. Inasmuch as this item relates solely to
    the House, and in accord with long practice under which each
    body determines its own housekeeping requirements and the other
    concurs without intervention, the managers on the part of the
    Senate, at the request of the managers on the part of the
    House, have receded to the House.

                                  Joint Items

                Joint Committee on Inaugural Ceremonies of 2001

                             salaries and expenses

          Appropriates $1,000,000 for the Joint Committee on
    Inaugural Ceremonies of 2001 as proposed by the Senate,
    amending two dates.

                            Administrative Provision

          The conferees have amended the administrative provision
    proposed by the House regarding assistance for the Capitol
    Police during the Inauguration in January 2001 and the 2001
    joint session of Congress to receive the State of the Union
    message.

                            Joint Economic Committee

          Appropriates $3,315,000 for the Joint Economic Committee
    as proposed by the Senate instead of $3,072,000 as proposed by
    the House.

                          Joint Committee on Taxation

          Appropriates $6,430,000 for the Joint Committee on
    Taxation instead of $6,174,000 as proposed by the House and
    $6,686,000 as proposed by the Senate. The conferees believe
    that this level of funding is sufficient for the Joint
    Committee on Taxation to complete its report on the overall
    state of the Federal tax system.

                              CAPITOL POLICE BOARD

                                 Capitol Police

                                    salaries

          Appropriates $97,142,000 for salaries of officers,
    members, and employees of the Capitol Police instead of
    $92,769,000 as proposed by the House and $102,700,000 as
    proposed by the Senate, of which $47,053,000 is provided to the
    Sergeant at Arms of the House of Representatives and
    $50,089,000 is provided to the Sergeant at Arms and Doorkeeper
    of the Senate. Of the amount provided, $4,660,000 is for
    overtime.
          The conferees have agreed this will fund 1,481 FTE's, the
    level proposed by the Senate. The Chief of Police is directed
    to secure the approval of the House and Senate Appropriations
    Committees before filling positions above the level of 1,402
    FTE's. The conferees intend that sufficient resources be
    allocated to implement the ``two officers per door'' policy.
    The Police are directed to study the posting requirements of
    all posts and report to the House and Senate Appropriations
    Committees. Until such a study is presented, the police are
    authorized an FTE level of 1402.

                                general expenses

          Appropriates $6,772,000 for general expenses of the
    Capitol Police instead of $6,549,000 as proposed by the House
    and $6,884,000 as proposed by the Senate. The funds provide
    $103,000 for motorcycle replacement, and the conferees direct
    that the Capitol Police continue the program begun in FY 2000
    to utilize American-made motorcycles, targeting the funds made
    available in this agreement towards smaller motorcycles. In
    addition, the conferees have not included reimbursement for
    telecommunications costs ($235,000) and direct that these
    savings be applied to other programs. Items for installation
    and maintenance of physical security and information security
    measures shall not be less than the FY 2000 funded level.

                           Administrative Provisions

          The conferees have included two administrative provisions
    proposed by the House relating to certifying officers and a
    chief administrative officer. The conferees have also added a
    provision adjusting the salary of the chief of the Capitol
    police.

               Capitol Guide Service and Special Services Office

          Appropriates $2,371,000 for the Capitol Guide Service and
    Special Services Office as proposed by the Senate instead of
    $2,201,000 as proposed by the House.

                          Statements of Appropriations

          Appropriates $30,000 for statements of appropriations as
    proposed by the Senate instead of $29,000 as proposed by the
    House and makes technical changes.

                              OFFICE OF COMPLIANCE

          Appropriates $1,820,000 for the Office of Compliance
    instead of $1,816,000 as proposed by the House and $2,066,000
    as proposed by the Senate. The conferees note that Office of
    Compliance telephones frequently are not answered during normal
    business hours. As an agency providing service to employees and
    agencies of the Legislative branch, the Executive Director
    should ensure that calls to the Office of Compliance are
    answered during normal business hours. In addition, the
    conferees believe the Executive Director should examine the use
    of contract couriers to make deliveries to Congressional
    offices and should reduce costs for such deliveries by use of
    other means when appropriate.

                          CONGRESSIONAL BUDGET OFFICE

                             Salaries and Expenses

          Establishes the limitation on funds for representation
    and reception expenses at $3,000 as proposed by the House
    instead of $2,500 as proposed by the Senate and appropriates
    $28,493,000 for salaries and expenses of the Congressional
    Budget Office instead of $27,403,000 as proposed by the House
    and $27,113,000 as proposed by the Senate.
          The conferees have included an administrative provision,
    as proposed by the Senate, authorizing the Congressional Budget
    Office to enter into multiple year contracts to the same extent
    as executive agencies.

                            ARCHITECT OF THE CAPITOL

                         Capitol Buildings and Grounds

                               capitol buildings

                             salaries and expenses

          Appropriates $43,689,000 for salaries and expenses,
    Capitol buildings, Architect of the Capitol, instead of
    $44,234,000 as proposed by the House and $44,191,000 as
    proposed by the Senate. Of this amount, $3,843,000 shall remain
    available until expended instead of $4,280,000 as proposed by
    the House and $4,255,000 as proposed by the Senate. With
    respect to object class and project differences between the
    House and Senate bills, the conferees have agreed to the
    following:

    Operating Budget:.......................................     $39,346,000
    Capitol Projects:
         1.  Update electrical system drawings on CAD.......          70,000
         2.  CAD Mechanical database........................          70,000
         3.  Conservation of wall paintings.................         200,000
         4.  Study, confined spaces, Capitol Complex........               0
         5.  Replacement on Minton tile.....................         100,000
         6.  Provide infrastructure for security
          installations.....................................         400,000
         7.  Computer, telecommunications and electrical
          support...........................................         300,000
         8.  Security project support for AOC...............               0
         9.  Roof fall protection...........................         555,000
        10.  Life safety support services...................               0
        11.  Safety and environmental program and SOP
          development.......................................               0
        12.  Wayfinding and ADA compliant signage...........          50,000
        13.   Computer aided facility management............         263,000

          The conference agreement includes a provision authorizing
    the Architect of the Capitol to hire a project manager for the
    construction of the Capitol Visitors Center and establishing a
    ceiling on the level of pay for this position. The conferees
    direct the Architect to fill this position from among persons
    recruited from outside the agency. The language authorizing the
    position and funding for same will require inclusion in annual
    appropriations bills and will be withdrawn upon completion of
    the project.
          The conferees have agreed to modify the Senate report
    language directing the Architect to create and fill a position
    for employee advocate. The conferees direct that the Architect
    fill the position of Employee Advocate on a one-year, temporary
    basis, using existing resources, at a level appropriate to the
    task. In the submission of the FY 2002 budget request, the
    Architect is directed to report on measures taken to fulfill
    directives in the Senate report in lieu of the quarterly
    reports outlined in the Senate report regarding this position.
    The House and Senate Committees on Appropriations will review
    the results of this temporary measure before considering a
    permanent solution.
          The conferees are aware that the Architect of the Capitol
    employs a significant number of temporary workers (excluding
    intermittent workers) who do not receive the usual benefits
    available to permanent federal workers. The Architect is
    directed to provide a report within 90 days to the Senate
    Committees on Appropriations and Rules and Administration, and
    to the House Committees on Appropriations, Transportation and
    Infrastructure, and House Administration, both majority and
    minority, detailing its use of temporary workers, the terms and
    conditions thereof, and the reasons therefor; the total number
    of such workers employed during each of the last five fiscal
    years; and a list and explanation of the benefits, if any, such
    workers receive by reason of their AOC employment. The report
    shall make recommendations for how to provide such workers
    access to federal benefits and a list of any alternatives that
    may exist to the use of temporary workers.
          The conferees are concerned about a class-action suit
    against the Architect (Harris et al. v. Architect of the
    Capitol). The Architect is urged to make every effort to settle
    this lawsuit as expeditiously as possible, and to report to the
    House and Senate Committees on Appropriations within 45 days on
    the status of the case.

                                capitol grounds

          Appropriates $5,362,000 to the Architect of the Capitol
    for care and improvement of grounds surrounding the Capitol,
    House and Senate office buildings, and the Capitol power plant
    instead of $5,217,000 as proposed by the House and $5,512,000
    as proposed by the Senate. Of this amount, $125,000 shall
    remain available until expended instead of $25,000 as proposed
    by the House and $225,000 as proposed by the Senate. With
    respect to object class and project differences between the
    House and Senate bills, the conferees have agreed to the
    following:

    Operating Budget........................................      $5,127,000
    Capitol Projects:
        1.  CAD database development--site utilities........         110,000
        2.  Wayfinding and ADA compliant signage............         100,000

                            senate office buildings

          Appropriates $63,974,000 to the Architect of the Capitol
    as proposed by the Senate, of which $21,669,000 shall remain
    available until expended, for the operations of the Senate
    office buildings. Inasmuch as this item relates solely to the
    Senate, and in accord with long practice under which each body
    determines its own housekeeping requirements and the other
    concurs without intervention, the managers on the part of the
    House, at the request of the managers on the part of the
    Senate, have receded to the Senate.

                             house office buildings

          Appropriates $32,750,000 to the Architect of the Capitol
    as proposed by the House, of which $123,000 shall remain
    available until expended, for the operations of the House
    office buildings. Inasmuch as this item relates solely to the
    House, and in accord with long practice under which each body
    determines its own housekeeping requirements and the other
    concurs without intervention, the managers on the part of the
    Senate, at the request of the managers on the part of the
    House, have receded to the House.

                              capitol power plant

          In addition to the $4,400,000 available from receipts,
    appropriates $39,415,000 to the Architect of the Capitol for
    Capitol power plant operations instead of $39,151,000 as
    proposed by the House and $39,569,000 as proposed by the
    Senate. Of this amount, $523,000 shall remain available until
    expended as proposed by the Senate instead of $200,000 as
    proposed by the House. With respect to object class and project
    differences between the House and Senate bills, the conferees
    have agreed to the following:

    Operating Budget:
        1.  Personnel compensation..........................       4,467,000
        2.  Other expenses..................................      34,110,000
    Capital Projects:
        1.  Study, heat balance/efficiency improvements.....               0
        2.  Update CAD drawings.............................          65,000
        3.  Roof fall protection............................         323,000

                              LIBRARY OF CONGRESS

                         Congressional Research Service

                             salaries and expenses

          Appropriates $73,592,000 for salaries and expenses,
    Congressional Research Service, Library of Congress instead of
    $73,810,000 as proposed by the House and $73,374,000 as
    proposed by the Senate. In keeping with both the complete
    research and maximum practicable administrative independence of
    the Congressional Research Service, it is the conferees' intent
    that the Director of the Congressional Research Service shall
    be obligated to bring to the attention of the appropriate House
    and Senate Committees issues which directly impact the
    Congressional Research Service and its ability to serve the
    needs of Congress. The budgetary needs of CRS that may not be
    adequately addressed in the annual budget submission should be
    raised with the Appropriations Committees.

                           GOVERNMENT PRINTING OFFICE

                       Congressional Printing and Binding

          Appropriates $71,462,000 for Congressional printing and
    binding instead of $69,626,000 as proposed by the House and
    $73,297,000 as proposed by the Senate. The conference agreement
    includes a heading and provision for transfer of balances for
    preceding fiscal years to the Government Printing Office
    revolving fund as proposed by the House and language proposed
    by the Senate to provide for printing and binding for the
    Architect of the Capitol and for preparing the semimonthly and
    session indexes for the Congressional Record.
          Rather than limiting funding for the Congressional Record
    Index and indexers to close out activities, as directed in the
    House report, the conferees agree that this activity should
    continue and that improvements in work processes should be
    pursued by taking advantage of the latest available technology.
    These activities and initiatives should be more closely
    integrated and coordinated with related GPO functions and
    should be pursued under the direction of the Public Printer or
    appropriate officials designated by the Public Printer.

                            Administrative Provision

          The conference agreement amends an administrative
    provision proposed by the House regarding a study of
    Congressional printing needs and authorization of
    appropriations beginning in fiscal year 2003 to limit its
    application to the Clerk of the House and the printing needs of
    the House of Representatives.

                            TITLE II--OTHER AGENCIES

                                 BOTANIC GARDEN

                             Salaries and Expenses

          Appropriates $3,328,000 for salaries and expenses,
    Botanic Garden instead of $3,216,000 as proposed by the House
    and $3,653,000 as proposed by the Senate of which $25,000 shall
    remain available until expended instead of $150,000 as proposed
    by the Senate. With respect to object class and project
    differences between the House and Senate bills, the conferees
    have agreed to the following:

    Operating Budget........................................      $3,303,000
    Capitol Projects:
        1.  Replace equipment at growing facilities.........               0
        2.  Wayfinding signage..............................          25,000

                              LIBRARY OF CONGRESS

                             Salaries and Expenses

          Provides $282,838,000 for salaries and expenses, Library
    of Congress instead of $269,864,000 as proposed by the House
    and $267,330,000 as proposed by the Senate. Of this amount,
    $6,850,000 is made available from receipts collected by the
    Library of Congress, and $10,459,575 is to remain available
    until expended for acquisition of library materials as proposed
    by the House instead of $10,398,600 as proposed by the Senate.
    With respect to differences between the House and Senate bills,
    the conferees have agreed to the following:

     1.  Mandatories........................................      $8,459,000
     2.  Price level........................................      -1,920,000
     3.  Russian Leadership Program.........................      10,000,000
     4.  Hands Across America...............................       5,957,800
     5.  Arrearage reduction................................         500,000
     6.  Mass deacidification...............................       1,216,000
     7.  National Film Preservation Board...................         250,000
     8.  Digitization pilot with West Point.................         404,000
     9.  Digitization non-personal costs $..................       7,590,000
    10.  Ft. Meade Storage: One-time costs..................        -406,000
    11.  Ft. Meade Storage: Open module one.................         618,000
    12.  Automation: National Digital Library servers and
        storage.............................................         300,000
    13.  Security Office....................................       2,342,000
    14.  High-speed transmission line.......................       4,300,000

          The conference agreement includes funds for four
    programs, to remain available until expended. One provision,
    for $5,957,800, is for teaching educators how to incorporate
    the Library's digital collection into school curricula. A
    second provision provides $404,000 for a digitization pilot
    project with the Military Academy at West Point. A third
    provision provides $10,000,000 to continue the Russian
    Leadership Program for FY2001. A fourth provision provides
    $4,300,000 to the Library of Congress to develop high speed
    data transmission between the Library of Congress and
    educational facilities, libraries, or networks serving the
    National Digital Library pilot program. The Library is directed
    to investigate the most cost effective method of providing this
    capability and take the necessary steps to develop the
    capability within the resources available. Any remaining
    balance not required for the development of the high speed data
    transmission is available for support of the Library's digital
    futures initiative.
          The conferees agree with language in the House report
    directing the Library to employ students at the Ft. Meade
    remote storage facility and with language in the Senate report
    directing the Library to devote all available resources to
    elimination of cataloging arrearage.
          The conferees are aware that a task force has been
    established at the Library of Congress to explore the
    feasibility and desirability of instituting a telecommuting
    program for the Library. The conferees encourage the Librarian
    to consider a telecommuting program for the Library (including
    the Congressional Research Service), and to include a
    description of the program with his next budget submission.

                                Copyright Office

                             salaries and expenses

          Provides $38,523,000, including $29,283,000 made
    available from receipts, for salaries and expenses, Copyright
    Office instead of $38,771,000, including $31,783,000 from
    receipts, as proposed by the House and $38,332,000, including
    $26,783,000 from receipts, as proposed by the Senate. With
    respect to differences between the House and Senate bills, the
    conferees have agreed to the following:

    Salaries................................................     $31,318,000
    Expenses................................................       7,205,000

                 Books for the Blind and Physically Handicapped

                             salaries and expenses

          Appropriates $48,609,000 for salaries and expenses, books
    for the blind and physically handicapped instead of $48,507,000
    as proposed by the House and $48,711,000 as proposed by the
    Senate. Of this amount, $14,154,000 shall remain available
    until expended as proposed by the Senate instead of $14,135,000
    as proposed by the House.

                           Furniture and Furnishings

          Appropriates $4,892,000 for furniture and furnishings at
    the Library of Congress as proposed by the Senate instead of
    $5,394,000 as proposed by the House.

                           Administrative Provisions

          Various technical corrections and section number changes
    have been made. In Section 201, the conferees have agreed to an
    overall limitation of $199,630 on funds available for
    attendance at meetings as proposed by the House and a
    limitation of $59,300 on CRS attendance at meetings as proposed
    by the House. The conference agreement includes Section 202 as
    proposed by the House. The conferees have modified the scope of
    accounts available for transfer authority to include transfers
    only from the furniture and furnishings account and not to it.
    The conference agreement does not include the separation
    incentives proposed by the House. The conferees have authorized
    use of appropriated funds to pay the employer share of benefit
    costs for employees of the Library of Congress child care
    center.

                            ARCHITECT OF THE CAPITOL

                         Library Buildings and Grounds

                         structural and mechanical care

          Appropriates $15,970,000 for structural and mechanical
    care, Library buildings and grounds, Architect of the Capitol
    instead of $15,837,000 as proposed by the House and $16,347,000
    as proposed by the Senate. With respect to object class and
    project differences between the House and Senate bills, the
    conferees have agreed to the following:

    Operating Budget:
        1.  Personnel compensation and benefits.............      $7,959,000
        2.  Annual expenses.................................       1,966,000
    Capitol Projects:
        3.  Preservations environmental monitoring..........               0
        4.  Replace HVAC variable speed drive motor.........          90,000
        5.  Room and partition modifications................         165,000
        6.  Replace partition supports......................         200,000
        7.  Lightning protection, Madison building..........         190,000

                           GOVERNMENT PRINTING OFFICE

                     Office of Superintendent of Documents

                             salaries and expenses

          Appropriates $27,954,000 for salaries and expenses,
    Office of the Superintendent of Documents instead of
    $25,652,000 as proposed by the House and $30,255,000 as
    proposed by the Senate. The conferees have retained the heading
    ``Transfer of Funds'' as proposed by the House and
    ``distribution'' to replace the wording, ``on-line access'',
    within the appropriating paragraph as proposed by the Senate.
    The conferees have included the Senate language for the
    appropriating provision on the availability of $2,000,000 from
    the appropriation and the appropriation provision authorizing
    transfer of funds as proposed by the House.
          The conferees recognize that the funding level provided
    may require adjustments in historically applicable program
    services and agree that no employee layoffs will be required.
    Emphasis should be on streamlining the distribution of
    traditional paper copies of publications which may include
    providing online access and less expensive electronic formats.
    The conferees agree to the transfer of unexpended funds
    proposed by the House, which provides additional flexibility in
    meeting program requirements.
          The conferees have agreed to modify the language in the
    House report directing the Congressional Research Service to
    conduct a study and direct that the General Accounting Office
    shall conduct a comprehensive study on the impact of providing
    documents to the public solely in electronic format. The study
    shall include: (1) a current inventory of publications and
    documents which are provided to the public, (2) the frequency
    with which each type of publication or document is requested
    for deposit at non-regional depository libraries, and (3) an
    assessment of the feasibility of transfer of the depository
    library program to the Library of Congress that: Identifies how
    such a transfer might be accomplished; Identifies when such a
    transfer might optimally occur; Examines the functions,
    services, and programs of the Superintendent of Documents;
    Examines and identifies administrative and infrastructure
    support that is provided to the Superintendent by the
    Government Printing Office, with a view to the implications for
    such a transfer; Examines and identifies the costs, for both
    the Government Printing Office and the Library of Congress, of
    such a transfer; Identifies measures that are necessary to
    ensure the success of such a transfer.
          The study shall be submitted to the Committee on House
    Administration and the Senate Committee on Rules and
    Administration by March 30, 2001.

                            Administrative Provision

          The conferees have not included a provision proposed by
    the Senate amending 44 U.S.C. 1708.

                           GENERAL ACCOUNTING OFFICE

                             Salaries and Expenses

          Appropriates $384,867,000 for salaries and expenses,
    General Accounting Office as proposed by the Senate instead of
    $368,896,000 as proposed by the House. Within the appropriating
    paragraph, the conferees have set the limitation on
    representation expenses at $10,000 as proposed by the House,
    instead of $7,000 as proposed by the Senate and made technical
    corrections to two other matters.
          The General Accounting Office shall undertake a study of
    the effects on air pollution caused by all polluting sources,
    including automobiles and the electric power generation
    emissions of the Tennessee Valley Authority on the Great Smoky
    Mountains National Park, the Blue Ridge Parkway and the Pisgah,
    Nantahla, and Cherokee National Forests. This study will also
    include the amount of carbon emissions avoided by the use of
    non-emitting electricity sources such as nuclear power within
    the same region. The GAO shall report to the Committees on
    Appropriations no later than January 31, 2001.

                           Administrative Provisions

          The conferees have not included several administrative
    provisions proposed by the Senate.

                         TITLE III--GENERAL PROVISIONS

          In Title III, General Provisions, section numbers have
    been changed to conform to the conference agreement and
    technical corrections have been made. The conferees have
    included a liquidated damages provision proposed by the House.
    The conferees have included provisions proposed by the Senate
    changing a date and extending the Russian Leadership Program.
    The conferees have not included a proposed merger of various
    law enforcement activities and have amended language in the
    Senate bill regarding the placement of statues in Statuary
    Hall. The conferees have adjusted the limitation on the
    National Garden and have agreed to establish a Center for
    Russian Leadership Development as proposed by the Senate. A
    Sense of the Senate provision and a limitation on the use of
    pesticides have not been included. There is a provision
    regarding an assessment by the General Accounting Office of a
    report referred to in the National Defense Authorization Act
    for Fiscal Year 1998.

               TITLE IV--FISCAL YEAR 2000 EMERGENCY SUPPLEMENTAL

          The conferees have included several Fiscal Year 2000
    supplemental appropriation items that require urgent attention
    and are considered emergency situations.

                               LEGISLATIVE BRANCH

                                  JOINT ITEMS

                              Capitol Police Board

                             security enhancements

          The conference agreement provides an additional
    $2,102,000 for Fiscal Year 2000 to the Capitol Police Board for
    security enhancements. Of this amount, $228,000 are for
    acquisition and installation of card readers for four
    additional Capitol buildings access points not currently funded
    in the security enhancements plan. In addition, $1,874,000 is
    provided for work at the Library of Congress to complete the
    closed circuit television ($1,390,000) and access control
    ($484,000) improvement tasks. These funds are designated as an
    emergency requirement.

                            ARCHITECT OF THE CAPITOL

                         Capitol Buildings And Grounds

                             house office buildings

          The conference agreement appropriates $9,000,000 for
    Fiscal Year 2000 to the Architect of the Capitol for urgent
    repairs to the underground garage in the Cannon House Office
    Building. These funds are designated as an emergency
    requirement.

                  DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

                         FEDERAL HOUSING ADMINISTRATION

                 FHA--General and Special Risk Program Account

          At the request of the House and Senate subcommittees on
    VA, HUD and Independent Agencies Appropriations, the conferees
    have agreed to include a provision for the Department of
    Housing and Urban Development (HUD) that provides, on an
    emergency basis, $40,000,000 in credit subsidy for the FHA
    General and Special Risk Program Account. Without these
    additional funds, the Title I home improvement program, the
    condominium loan program, the FHA reverse mortgage program for
    senior citizens, and various multifamily housing insurance
    programs would have to be suspended. The additional
    appropriation would have been unnecessary if HUD had adhered to
    assumptions made by the Office of Management and Budget (OMB)
    in determining credit subsidy rates when the President's budget
    was submitted to Congress, a violation of budget conventions.
    In the future, HUD should refrain from similar actions.

                       CONFERENCE TOTAL--WITH COMPARISONS

          The total new budget (obligational) authority for the
    fiscal year 2001 recommended by the Committee of Conference,
    with comparisons to the fiscal year 2000 amount, the 2001
    budget estimates, and the House and Senate bills for 2001
    follow:

                            [In thousands of dollars]

    New budget (obligational) authority, fiscal year 2000.........$2,475,080
    Budget estimates of new (obligational) authority, fiscal year
        2001...................................................... 2,725,604
    House bill, fiscal year 2001.................................. 1,913,691
    Senate bill, fiscal year 2001................................. 2,523,378
    Conference agreement, fiscal year 2001........................ 2,526,863
      Conference agreement compared with:
        New budget (obligational) authority, fiscal year 2000.....   +51,783
        Budget estimates of new (obligational) authority, fiscal
          year 2001...............................................  -198,741
        House bill, fiscal year 2001..............................  +613,172
        Senate bill, fiscal year 2001.............................    +3,485
    Title IV--FY 2000 Emergency Supplemental......................    51,102

     TREASURY DEPARTMENT, THE UNITED STATES POSTAL SERVICE, THE EXECUTIVE
           OFFICE OF THE PRESIDENT, AND CERTAIN INDEPENDENT AGENCIES
                                 APPROPRIATIONS

          The conference agreement would enact the provisions of
    H.R. 5658 as introduced on December 14, 2000. The text of that
    bill follows:

     A BILL Making appropriations for the Treasury Department, the United
       States Postal Service, the Executive Office of the President, and
     certain Independent Agencies for the fiscal year ending September 30,
                          2001, and for other purposes

          Be it enacted by the Senate and House of Representatives
    of the United States of America in Congress assembled, That the
    following sums are appropriated, out of any money in the
    Treasury not otherwise appropriated, for the Treasury
    Department, the United States Postal Service, the Executive
    Office of the President, and certain Independent Agencies for
    the fiscal year ending September 30, 2001, and for other
    purposes, namely:

                      TITLE I--DEPARTMENT OF THE TREASURY

                              Departmental Offices

                             salaries and expenses

        For necessary expenses of the Departmental Offices
    including operation and maintenance of the Treasury Building
    and Annex; hire of passenger motor vehicles; maintenance,
    repairs, and improvements of, and purchase of commercial
    insurance policies for, real properties leased or owned
    overseas, when necessary for the performance of official
    business; not to exceed $2,900,000 for official travel
    expenses; not to exceed $3,813,000, to remain available until
    expended for information technology modernization requirements;
    not to exceed $150,000 for official reception and
    representation expenses; not to exceed $258,000 for unforeseen
    emergencies of a confidential nature, to be allocated and
    expended under the direction of the Secretary of the Treasury
    and to be accounted for solely on his certificate,
    $156,315,000: Provided, That the Office of Foreign Assets
    Control shall be funded at no less than $11,439,000: Provided
    further, That of these amounts $2,900,000 is available for
    grants to State and local law enforcement groups to help fight
    money laundering.

            Department-Wide Systems and Capital Investments Programs

                         (including transfer of funds)

        For development and acquisition of automatic data
    processing equipment, software, and services for the Department
    of the Treasury, $47,287,000, to remain available until
    expended: Provided, That these funds shall be transferred to
    accounts and in amounts as necessary to satisfy the
    requirements of the Department's offices, bureaus, and other
    organizations: Provided further, That this transfer authority
    shall be in addition to any other transfer authority provided
    in this Act: Provided further, That none of the funds
    appropriated shall be used to support or supplement the
    Internal Revenue Service appropriations for Information
    Systems.

                          Office of Inspector General

                             salaries and expenses

        For necessary expenses of the Office of Inspector General
    in carrying out the provisions of the Inspector General Act of
    1978, as amended, not to exceed $2,000,000 for official travel
    expenses, including hire of passenger motor vehicles; and not
    to exceed $100,000 for unforeseen emergencies of a confidential
    nature, to be allocated and expended under the direction of the
    Inspector General of the Treasury, $32,899,000.

               Treasury Inspector General for Tax Administration

                             salaries and expenses

        For necessary expenses of the Treasury Inspector General
    for Tax Administration in carrying out the Inspector General
    Act of 1978, as amended, including purchase (not to exceed 150
    for replacement only for police-type use) and hire of passenger
    motor vehicles (31 U.S.C. 1343(b)); services authorized by 5
    U.S.C. 3109, at such rates as may be determined by the
    Inspector General for Tax Administration; not to exceed
    $6,000,000 for official travel expenses; and not to exceed
    $500,000 for unforeseen emergencies of a confidential nature,
    to be allocated and expended under the direction of the
    Inspector General for Tax Administration, $118,427,000.

               Treasury Building and Annex Repair and Restoration

        For the repair, alteration, and improvement of the Treasury
    Building and Annex, $31,000,000, to remain available until
    expended.

                     Expanded Access to Financial Services

                         (including transfer of funds)

        To develop and implement programs to expand access to
    financial services for low- and moderate-income individuals,
    $2,000,000, to remain available until expended: Provided, That
    of these funds, such sums as may be necessary may be
    transferred to accounts of the Department's offices, bureaus,
    and other organizations: Provided further, That this transfer
    authority shall be in addition to any other transfer authority
    provided in this Act.

                      Financial Crimes Enforcement Network

                             salaries and expenses

        For necessary expenses of the Financial Crimes Enforcement
    Network, including hire of passenger motor vehicles; travel
    expenses of non-Federal law enforcement personnel to attend
    meetings concerned with financial intelligence activities, law
    enforcement, and financial regulation; not to exceed $14,000
    for official reception and representation expenses; and for
    assistance to Federal law enforcement agencies, with or without
    reimbursement, $37,576,000, of which not to exceed $2,800,000
    shall remain available until September 30, 2003; and of which
    $2,275,000 shall remain available until September 30, 2002:
    Provided, That funds appropriated in this account may be used
    to procure personal services contracts.

                             Counterterrorism Fund

        For necessary expenses, as determined by the Secretary,
    $55,000,000, to remain available until expended, to reimburse
    any Department of the Treasury organization for the costs of
    providing support to counter, investigate, or prosecute
    terrorism, including payment of rewards in connection with
    these activities: Provided, That the entire amount is
    designated by the Congress as an emergency requirement pursuant
    to section 251(b)(2)(A) of the Balanced Budget and Emergency
    Deficit Control Act of 1985, as amended: Provided further, That
    the entire amount shall be available only to the extent that an
    official budget request for a specific dollar amount that
    includes designation of the entire amount of the request as an
    emergency requirement as defined in such Act is transmitted by
    the President to the Congress.

                    Federal Law Enforcement Training Center

                             salaries and expenses

        For necessary expenses of the Federal Law Enforcement
    Training Center, as a bureau of the Department of the Treasury,
    including materials and support costs of Federal law
    enforcement basic training; purchase (not to exceed 52 for
    police-type use, without regard to the general purchase price
    limitation) and hire of passenger motor vehicles; for expenses
    for student athletic and related activities; uniforms without
    regard to the general purchase price limitation for the current
    fiscal year; the conducting of and participating in firearms
    matches and presentation of awards; for public awareness and
    enhancing community support of law enforcement training; not to
    exceed $11,500 for official reception and representation
    expenses; room and board for student interns; and services as
    authorized by 5 U.S.C. 3109, $94,483,000, of which up to
    $17,043,000 for materials and support costs of Federal law
    enforcement basic training shall remain available until
    September 30, 2003: Provided, That the Center is authorized to
    accept and use gifts of property, both real and personal, and
    to accept services, for authorized purposes, including funding
    of a gift of intrinsic value which shall be awarded annually by
    the Director of the Center to the outstanding student who
    graduated from a basic training program at the Center during
    the previous fiscal year, which shall be funded only by gifts
    received through the Center's gift authority: Provided further,
    That notwithstanding any other provision of law, students
    attending training at any Federal Law Enforcement Training
    Center site shall reside in on-Center or Center-provided
    housing, insofar as available and in accordance with Center
    policy: Provided further, That funds appropriated in this
    account shall be available, at the discretion of the Director,
    for the following: training United States Postal Service law
    enforcement personnel and Postal police officers; State and
    local government law enforcement training on a space-available
    basis; training of foreign law enforcement officials on a
    space-available basis with reimbursement of actual costs to
    this appropriation, except that reimbursement may be waived by
    the Secretary for law enforcement training activities in
    foreign countries undertaken pursuant to section 801 of the
    Antiterrorism and Effective Death Penalty Act of 1996, Public
    Law 104-32; training of private sector security officials on a
    space-available basis with reimbursement of actual costs to
    this appropriation; and travel expenses of non-Federal
    personnel to attend course development meetings and training
    sponsored by the Center: Provided further, That the Center is
    authorized to obligate funds in anticipation of reimbursements
    from agencies receiving training sponsored by the Federal Law
    Enforcement Training Center, except that total obligations at
    the end of the fiscal year shall not exceed total budgetary
    resources available at the end of the fiscal year: Provided
    further, That the Federal Law Enforcement Training Center is
    authorized to provide training for the Gang Resistance
    Education and Training program to Federal and non-Federal
    personnel at any facility in partnership with the Bureau of
    Alcohol, Tobacco and Firearms: Provided further, That the
    Federal Law Enforcement Training Center is authorized to
    provide short-term medical services for students undergoing
    training at the Center.

         acquisition, construction, improvements, and related expenses

        For expansion of the Federal Law Enforcement Training
    Center, for acquisition of necessary additional real property
    and facilities, and for ongoing maintenance, facility
    improvements, and related expenses, $29,205,000, to remain
    available until expended.

                          Interagency Law Enforcement

                     interagency crime and drug enforcement

        For expenses necessary to conduct investigations and
    convict offenders involved in organized crime drug trafficking,
    including cooperative efforts with State and local law
    enforcement, as it relates to the Treasury Department law
    enforcement violations such as money laundering, violent crime,
    and smuggling, $103,476,000, of which $7,827,000 shall remain
    available until expended.

                          Financial Management Service

                             salaries and expenses

        For necessary expenses of the Financial Management Service,
    $206,851,000, of which not to exceed $10,635,000 shall remain
    available until September 30, 2003, for information systems
    modernization initiatives; and of which not to exceed $2,500
    shall be available for official reception and representation
    expenses.

                    Bureau of Alcohol, Tobacco and Firearms

                             salaries and expenses

        For necessary expenses of the Bureau of Alcohol, Tobacco
    and Firearms, including purchase of not to exceed 812 vehicles
    for police-type use, of which 650 shall be for replacement
    only, and hire of passenger motor vehicles; hire of aircraft;
    services of expert witnesses at such rates as may be determined
    by the Director; for payment of per diem and/or subsistence
    allowances to employees where a major investigative assignment
    requires an employee to work 16 hours or more per day or to
    remain overnight at his or her post of duty; not to exceed
    $20,000 for official reception and representation expenses; for
    training of State and local law enforcement agencies with or
    without reimbursement, including training in connection with
    the training and acquisition of canines for explosives and fire
    accelerants detection; not to exceed $50,000 for cooperative
    research and development programs for Laboratory Services and
    Fire Research Center activities; and provision of laboratory
    assistance to State and local agencies, with or without
    reimbursement, $768,695,000, of which not to exceed $1,000,000
    shall be available for the payment of attorneys' fees as
    provided by 18 U.S.C. 924(d)(2); of which up to $2,000,000
    shall be available for the equipping of any vessel, vehicle,
    equipment, or aircraft available for official use by a State or
    local law enforcement agency if the conveyance will be used in
    joint law enforcement operations with the Bureau of Alcohol,
    Tobacco and Firearms and for the payment of overtime salaries
    including Social Security and Medicare, travel, fuel, training,
    equipment, supplies, and other similar costs of State and local
    law enforcement personnel, including sworn officers and support
    personnel, that are incurred in joint operations with the
    Bureau of Alcohol, Tobacco and Firearms: Provided, That no
    funds made available by this or any other Act may be used to
    transfer the functions, missions, or activities of the Bureau
    of Alcohol, Tobacco and Firearms to other agencies or
    Departments in fiscal year 2001: Provided further, That no
    funds appropriated herein shall be available for salaries or
    administrative expenses in connection with consolidating or
    centralizing, within the Department of the Treasury, the
    records, or any portion thereof, of acquisition and disposition
    of firearms maintained by Federal firearms licensees: Provided
    further, That no funds appropriated herein shall be used to pay
    administrative expenses or the compensation of any officer or
    employee of the United States to implement an amendment or
    amendments to 27 CFR 178.118 or to change the definition of
    ``Curios or relics'' in 27 CFR 178.11 or remove any item from
    ATF Publication 5300.11 as it existed on January 1, 1994:
    Provided further, That none of the funds appropriated herein
    shall be available to investigate or act upon applications for
    relief from Federal firearms disabilities under 18 U.S.C.
    925(c): Provided further, That such funds shall be available to
    investigate and act upon applications filed by corporations for
    relief from Federal firearms disabilities under 18 U.S.C.
    925(c): Provided further, That no funds under this Act may be
    used to electronically retrieve information gathered pursuant
    to 18 U.S.C. 923(g)(4) by name or any personal identification
    code.

                         United States Customs Service

                             salaries and expenses

        For necessary expenses of the United States Customs
    Service, including purchase and lease of up to 1,050 motor
    vehicles of which 550 are for replacement only and of which
    1,030 are for police-type use and commercial operations; hire
    of motor vehicles; contracting with individuals for personal
    services abroad; not to exceed $40,000 for official reception
    and representation expenses; and awards of compensation to
    informers, as authorized by any Act enforced by the United
    States Customs Service, $1,863,765,000, of which such sums as
    become available in the Customs User Fee Account, except sums
    subject to section 13031(f)(3) of the Consolidated Omnibus
    Budget Reconciliation Act of 1985, as amended (19 U.S.C.
    58c(f)(3)), shall be derived from that Account; of the total,
    not to exceed $150,000 shall be available for payment for
    rental space in connection with preclearance operations; not to
    exceed $4,000,000 shall be available until expended for
    research; of which not less than $100,000 shall be available to
    promote public awareness of the child pornography tipline; of
    which not less than $200,000 shall be available for Project
    Alert; not to exceed $5,000,000 shall be available until
    expended for conducting special operations pursuant to 19
    U.S.C. 2081; not to exceed $8,000,000 shall be available until
    expended for the procurement of automation infrastructure
    items, including hardware, software, and installation; and not
    to exceed $5,000,000 shall be available until expended for
    repairs to Customs facilities: Provided, That uniforms may be
    purchased without regard to the general purchase price
    limitation for the current fiscal year: Provided further, That
    notwithstanding any other provision of law, the fiscal year
    aggregate overtime limitation prescribed in subsection 5(c)(1)
    of the Act of February 13, 1911 (19 U.S.C. 261 and 267) shall
    be $30,000.

                       harbor maintenance fee collection

                         (including transfer of funds)

        For administrative expenses related to the collection of
    the Harbor Maintenance Fee, pursuant to Public Law 103-182,
    $3,000,000, to be derived from the Harbor Maintenance Trust
    Fund and to be transferred to and merged with the Customs
    ``Salaries and Expenses'' account for such purposes.

      operation, maintenance and procurement, air and marine interdiction
                                    programs

        For expenses, not otherwise provided for, necessary for the
    operation and maintenance of marine vessels, aircraft, and
    other related equipment of the Air and Marine Programs,
    including operational training and mission-related travel, and
    rental payments for facilities occupied by the air or marine
    interdiction and demand reduction programs, the operations of
    which include the following: the interdiction of narcotics and
    other goods; the provision of support to Customs and other
    Federal, State, and local agencies in the enforcement or
    administration of laws enforced by the Customs Service; and, at
    the discretion of the Commissioner of Customs, the provision of
    assistance to Federal, State, and local agencies in other law
    enforcement and emergency humanitarian efforts, $133,228,000,
    which shall remain available until expended: Provided, That no
    aircraft or other related equipment, with the exception of
    aircraft which is one of a kind and has been identified as
    excess to Customs requirements and aircraft which has been
    damaged beyond repair, shall be transferred to any other
    Federal agency, department, or office outside of the Department
    of the Treasury, during fiscal year 2001 without the prior
    approval of the Committees on Appropriations.

                            automation modernization

        For expenses not otherwise provided for Customs automated
    systems, $258,400,000, to remain available until expended, of
    which $5,400,000 shall be for the International Trade Data
    System, and not less than $130,000,000 shall be for the
    development of the Automated Commercial Environment: Provided,
    That none of the funds appropriated under this heading may be
    obligated for the Automated Commercial Environment until the
    United States Customs Service prepares and submits to the
    Committees on Appropriations a final plan for expenditure that:
    (1) meets the capital planning and investment control review
    requirements established by the Office of Management and
    Budget, including OMB Circular A-11, part 3; (2) complies with
    the United States Customs Service's Enterprise Information
    Systems Architecture; (3) complies with the acquisition rules,
    requirements, guidelines, and systems acquisition management
    practices of the Federal Government; (4) is reviewed and
    approved by the Customs Investment Review Board, the Department
    of the Treasury, and the Office of Management and Budget; and
    (5) is reviewed by the General Accounting Office: Provided
    further, That none of the funds appropriated under this heading
    may be obligated for the Automated Commercial Environment until
    that final expenditure plan has been approved by the Committees
    on Appropriations.

                           Bureau of the Public Debt

                         administering the public debt

        For necessary expenses connected with any public-debt
    issues of the United States, $187,301,000, of which not to
    exceed $2,500 shall be available for official reception and
    representation expenses, and of which not to exceed $2,000,000
    shall remain available until expended for systems
    modernization: Provided, That the sum appropriated herein from
    the General Fund for fiscal year 2001 shall be reduced by not
    more than $4,400,000 as definitive security issue fees and
    Treasury Direct Investor Account Maintenance fees are
    collected, so as to result in a final fiscal year 2001
    appropriation from the General Fund estimated at $182,901,000.
    In addition, $23,600, to be derived from the Oil Spill
    Liability Trust Fund to reimburse the Bureau for administrative
    and personnel expenses for financial management of the Fund, as
    authorized by section 1012 of Public Law 101-380; and in
    addition, to be appropriated from the General Fund, such sums
    as may be necessary for administrative expenses in association
    with the South Dakota Trust Fund and the Cheyenne River Sioux
    Tribe Terrestrial Wildlife Restoration and Lower Brule Sioux
    Tribe Terrestrial Restoration Trust Fund, as authorized by
    sections 603(f) and 604(f) of Public Law 106-53.

                            Internal Revenue Service

                     processing, assistance, and management

        For necessary expenses of the Internal Revenue Service for
    tax returns processing; revenue accounting; tax law and account
    assistance to taxpayers by telephone and correspondence;
    providing an independent taxpayer advocate within the Service;
    programs to match information returns and tax returns;
    management services; rent and utilities; and services as
    authorized by 5 U.S.C. 3109, at such rates as may be determined
    by the Commissioner, $3,567,001,000, of which up to $3,950,000
    shall be for the Tax Counseling for the Elderly Program, and of
    which not to exceed $25,000 shall be for official reception and
    representation expenses.

                              tax law enforcement

        For necessary expenses of the Internal Revenue Service for
    determining and establishing tax liabilities; providing
    litigation support; issuing technical rulings; providing
    service to tax exempt customers, including employee plans, tax
    exempt organizations, and government entities; examining
    employee plans and exempt organizations; conducting criminal
    investigation and enforcement activities; securing unfiled tax
    returns; collecting unpaid accounts; compiling statistics of
    income and conducting compliance research; purchase (for
    police-type use, not to exceed 850) and hire of passenger motor
    vehicles (31 U.S.C. 1343(b)); and services as authorized by 5
    U.S.C. 3109, at such rates as may be determined by the
    Commissioner, $3,382,402,000, of which not to exceed $1,000,000
    shall remain available until September 30, 2003, for research.

                 earned income tax credit compliance initiative

        For funding essential earned income tax credit compliance
    and error reduction initiatives pursuant to section 5702 of the
    Balanced Budget Act of 1997 (Public Law 105-33), $145,000,000,
    of which not to exceed $10,000,000 may be used to reimburse the
    Social Security Administration for the costs of implementing
    section 1090 of the Taxpayer Relief Act of 1997.

                              information systems

        For necessary expenses of the Internal Revenue Service for
    information systems and telecommunications support, including
    developmental information systems and operational information
    systems; the hire of passenger motor vehicles (31 U.S.C.
    1343(b)); and services as authorized by 5 U.S.C. 3109, at such
    rates as may be determined by the Commissioner, $1,545,090,000
    which shall remain available until September 30, 2002.

              administrative provisions--internal revenue service

        Sec. 101. Not to exceed 5 percent of any appropriation made
    available in this Act to the Internal Revenue Service may be
    transferred to any other Internal Revenue Service appropriation
    upon the advance approval of the Committees on Appropriations.
        Sec. 102. The Internal Revenue Service shall maintain a
    training program to ensure that Internal Revenue Service
    employees are trained in taxpayers' rights, in dealing
    courteously with the taxpayers, and in cross-cultural
    relations.
        Sec. 103. The Internal Revenue Service shall institute and
    enforce policies and procedures that will safeguard the
    confidentiality of taxpayer information.
        Sec. 104. Funds made available by this or any other Act to
    the Internal Revenue Service shall be available for improved
    facilities and increased manpower to provide sufficient and
    effective 1-800 help line service for taxpayers. The
    Commissioner shall continue to make the improvement of the
    Internal Revenue Service 1-800 help line service a priority and
    allocate resources necessary to increase phone lines and staff
    to improve the Internal Revenue Service 1-800 help line
    service.

                          United States Secret Service

                             salaries and expenses

        For necessary expenses of the United States Secret Service,
    including purchase of not to exceed 844 vehicles for police-
    type use, of which 541 shall be for replacement only, and hire
    of passenger motor vehicles; purchase of American-made side-car
    compatible motorcycles; hire of aircraft; training and
    assistance requested by State and local governments, which may
    be provided without reimbursement; services of expert witnesses
    at such rates as may be determined by the Director; rental of
    buildings in the District of Columbia, and fencing, lighting,
    guard booths, and other facilities on private or other property
    not in Government ownership or control, as may be necessary to
    perform protective functions; for payment of per diem and/or
    subsistence allowances to employees where a protective
    assignment during the actual day or days of the visit of a
    protectee require an employee to work 16 hours per day or to
    remain overnight at his or her post of duty; the conducting of
    and participating in firearms matches; presentation of awards;
    for travel of Secret Service employees on protective missions
    without regard to the limitations on such expenditures in this
    or any other Act if approval is obtained in advance from the
    Committees on Appropriations; for research and development; for
    making grants to conduct behavioral research in support of
    protective research and operations; not to exceed $25,000 for
    official reception and representation expenses; not to exceed
    $100,000 to provide technical assistance and equipment to
    foreign law enforcement organizations in counterfeit
    investigations; for payment in advance for commercial
    accommodations as may be necessary to perform protective
    functions; and for uniforms without regard to the general
    purchase price limitation for the current fiscal year,
    $823,800,000, of which $3,633,000 shall be available as a grant
    for activities related to the investigations of exploited
    children and shall remain available until expended: Provided,
    That up to $18,000,000 provided for protective travel shall
    remain available until September 30, 2002.

         acquisition, construction, improvements, and related expenses

        For necessary expenses of construction, repair, alteration,
    and improvement of facilities, $8,941,000, to remain available
    until expended.

                 General Provisions--Department of the Treasury

        Sec. 110. Any obligation or expenditure by the Secretary of
    the Treasury in connection with law enforcement activities of a
    Federal agency or a Department of the Treasury law enforcement
    organization in accordance with 31 U.S.C. 9703(g)(4)(B) from
    unobligated balances remaining in the Fund on September 30,
    2001, shall be made in compliance with reprogramming
    guidelines.
        Sec. 111. Appropriations to the Department of the Treasury
    in this Act shall be available for uniforms or allowances
    therefor, as authorized by law (5 U.S.C. 5901), including
    maintenance, repairs, and cleaning; purchase of insurance for
    official motor vehicles operated in foreign countries; purchase
    of motor vehicles without regard to the general purchase price
    limitations for vehicles purchased and used overseas for the
    current fiscal year; entering into contracts with the
    Department of State for the furnishing of health and medical
    services to employees and their dependents serving in foreign
    countries; and services authorized by 5 U.S.C. 3109.
        Sec. 112. The funds provided to the Bureau of Alcohol,
    Tobacco and Firearms for fiscal year 2001 in this Act for the
    enforcement of the Federal Alcohol Administration Act shall be
    expended in a manner so as not to diminish enforcement efforts
    with respect to section 105 of the Federal Alcohol
    Administration Act.
        Sec. 113. Not to exceed 2 percent of any appropriations in
    this Act made available to the Federal Law Enforcement Training
    Center, Financial Crimes Enforcement Network, Bureau of
    Alcohol, Tobacco and Firearms, United States Customs Service,
    and United States Secret Service may be transferred between
    such appropriations upon the advance approval of the Committees
    on Appropriations. No transfer may increase or decrease any
    such appropriation by more than 2 percent.
        Sec. 114. Not to exceed 2 percent of any appropriations in
    this Act made available to the Departmental Offices, Office of
    Inspector General, Treasury Inspector General for Tax
    Administration, Financial Management Service, and Bureau of the
    Public Debt, may be transferred between such appropriations
    upon the advance approval of the Committees on Appropriations.
    No transfer may increase or decrease any such appropriation by
    more than 2 percent.
        Sec. 115. Not to exceed 2 percent of any appropriation made
    available in this Act to the Internal Revenue Service may be
    transferred to the Treasury Inspector General for Tax
    Administration's appropriation upon the advance approval of the
    Committees on Appropriations. No transfer may increase or
    decrease any such appropriation by more than 2 percent.
        Sec. 116. Of the funds available for the purchase of law
    enforcement vehicles, no funds may be obligated until the
    Secretary of the Treasury certifies that the purchase by the
    respective Treasury bureau is consistent with Departmental
    vehicle management principles: Provided, That the Secretary may
    delegate this authority to the Assistant Secretary for
    Management.
        Sec. 117. None of the funds appropriated in this Act or
    otherwise available to the Department of the Treasury or the
    Bureau of Engraving and Printing may be used to redesign the $1
    Federal Reserve note.
        Sec. 118. Hereafter, funds made available by this or any
    other Act may be used to pay premium pay for protective
    services authorized by section 3056(a) of title 18, United
    States Code, without regard to the limitation on the rate of
    pay payable during a pay period contained in section 5547(c)(2)
    of title 5, United States Code, except that such premium pay
    shall not be payable to an employee to the extent that the
    aggregate of the employee's basic and premium pay for the year
    would otherwise exceed the annual equivalent of that
    limitation. The term premium pay refers to the provisions of
    law cited in the first sentence of section 5547(a) of title 5,
    United States Code. Payment of additional premium pay payable
    under this section may be made in a lump sum on the last payday
    of the calendar year.
        Sec. 119. The Secretary of the Treasury may transfer funds
    from ``Salaries and Expenses'', Financial Management Service,
    to the Debt Services Account as necessary to cover the costs of
    debt collection: Provided, That such amounts shall be
    reimbursed to such Salaries and Expenses account from debt
    collections received in the Debt Services Account.
        Sec. 120. Under the heading of Treasury Franchise Fund in
    Public Law 104-208, delete the following: the phrases ``pilot,
    as authorized by section 403 of Public Law 103-356,''; and ``as
    provided in such section''; and the final proviso. After the
    phrase ``to be available'', insert ``without fiscal year
    limitation,''. After the phrase, ``established in the Treasury
    a franchise fund'', insert, ``until October 1, 2002''.
        Sec. 121. Notwithstanding any other provision of law, no
    reorganization of the field operations of the United States
    Customs Service Office of Field Operations shall result in a
    reduction in service to the area served by the Port of Racine,
    Wisconsin, below the level of service provided in fiscal year
    2000.
        Sec. 122. Notwithstanding any other provision of law, the
    Bureau of Alcohol, Tobacco and Firearms shall reimburse the
    subcontractor that provided services in 1993 and 1994 pursuant
    to Bureau of Alcohol, Tobacco and Firearms contract number TATF
    93-3 from amounts appropriated for fiscal year 2001 or
    unobligated balances from prior fiscal years, and such
    reimbursement shall cover the cost of all professional services
    rendered, plus interest calculated in accordance with the
    Contract Dispute Act of 1978 (41 U.S.C. 601 et seq.)
        This title may be cited as the ``Treasury Department
    Appropriations Act, 2001''.

                            TITLE II--POSTAL SERVICE

                       Payment to the Postal Service Fund

        For payment to the Postal Service Fund for revenue forgone
    on free and reduced rate mail, pursuant to subsections (c) and
    (d) of section 2401 of title 39, United States Code,
    $96,093,000, of which $67,093,000 shall not be available for
    obligation until October 1, 2001: Provided, That mail for
    overseas voting and mail for the blind shall continue to be
    free: Provided further, That 6-day delivery and rural delivery
    of mail shall continue at not less than the 1983 level:
    Provided further, That none of the funds made available to the
    Postal Service by this Act shall be used to implement any rule,
    regulation, or policy of charging any officer or employee of
    any State or local child support enforcement agency, or any
    individual participating in a State or local program of child
    support enforcement, a fee for information requested or
    provided concerning an address of a postal customer: Provided
    further, That none of the funds provided in this Act shall be
    used to consolidate or close small rural and other small post
    offices in fiscal year 2001.
        This title may be cited as the ``Postal Service
    Appropriations Act, 2001''.

    TITLE III--EXECUTIVE OFFICE OF THE PRESIDENT AND FUNDS APPROPRIATED TO
                                 THE PRESIDENT

            Compensation of the President and the White House Office

                         compensation of the president

        For compensation of the President, including an expense
    allowance at the rate of $50,000 per annum as authorized by 3
    U.S.C. 102, $390,000: Provided, That none of the funds made
    available for official expenses shall be expended for any other
    purpose and any unused amount shall revert to the Treasury
    pursuant to section 1552 of title 31, United States Code:
    Provided further, That none of the funds made available for
    official expenses shall be considered as taxable to the
    President.

                             salaries and expenses

        For necessary expenses for the White House as authorized by
    law, including not to exceed $3,850,000 for services as
    authorized by 5 U.S.C. 3109 and 3 U.S.C. 105; subsistence
    expenses as authorized by 3 U.S.C. 105, which shall be expended
    and accounted for as provided in that section; hire of
    passenger motor vehicles, newspapers, periodicals, teletype
    news service, and travel (not to exceed $100,000 to be expended
    and accounted for as provided by 3 U.S.C. 103); and not to
    exceed $19,000 for official entertainment expenses, to be
    available for allocation within the Executive Office of the
    President, $53,288,000: Provided, That $9,072,000 of the funds
    appropriated shall be available for reimbursements to the White
    House Communications Agency.

                     Executive Residence at the White House

                               operating expenses

        For the care, maintenance, repair and alteration,
    refurnishing, improvement, heating, and lighting, including
    electric power and fixtures, of the Executive Residence at the
    White House and official entertainment expenses of the
    President, $10,900,000, to be expended and accounted for as
    provided by 3 U.S.C. 105, 109, 110, and 112-114.

                             reimbursable expenses

        For the reimbursable expenses of the Executive Residence at
    the White House, such sums as may be necessary: Provided, That
    all reimbursable operating expenses of the Executive Residence
    shall be made in accordance with the provisions of this
    paragraph: Provided further, That, notwithstanding any other
    provision of law, such amount for reimbursable operating
    expenses shall be the exclusive authority of the Executive
    Residence to incur obligations and to receive offsetting
    collections, for such expenses: Provided further, That the
    Executive Residence shall require each person sponsoring a
    reimbursable political event to pay in advance an amount equal
    to the estimated cost of the event, and all such advance
    payments shall be credited to this account and remain available
    until expended: Provided further, That the Executive Residence
    shall require the national committee of the political party of
    the President to maintain on deposit $25,000, to be separately
    accounted for and available for expenses relating to
    reimbursable political events sponsored by such committee
    during such fiscal year: Provided further, That the Executive
    Residence shall ensure that a written notice of any amount owed
    for a reimbursable operating expense under this paragraph is
    submitted to the person owing such amount within 60 days after
    such expense is incurred, and that such amount is collected
    within 30 days after the submission of such notice: Provided
    further, That the Executive Residence shall charge interest and
    assess penalties and other charges on any such amount that is
    not reimbursed within such 30 days, in accordance with the
    interest and penalty provisions applicable to an outstanding
    debt on a United States Government claim under section 3717 of
    title 31, United States Code: Provided further, That each such
    amount that is reimbursed, and any accompanying interest and
    charges, shall be deposited in the Treasury as miscellaneous
    receipts: Provided further, That the Executive Residence shall
    prepare and submit to the Committees on Appropriations, by not
    later than 90 days after the end of the fiscal year covered by
    this Act, a report setting forth the reimbursable operating
    expenses of the Executive Residence during the preceding fiscal
    year, including the total amount of such expenses, the amount
    of such total that consists of reimbursable official and
    ceremonial events, the amount of such total that consists of
    reimbursable political events, and the portion of each such
    amount that has been reimbursed as of the date of the report:
    Provided further, That the Executive Residence shall maintain a
    system for the tracking of expenses related to reimbursable
    events within the Executive Residence that includes a standard
    for the classification of any such expense as political or
    nonpolitical: Provided further, That no provision of this
    paragraph may be construed to exempt the Executive Residence
    from any other applicable requirement of subchapter I or II of
    chapter 37 of title 31, United States Code.

                       white house repair and restoration

        For the repair, alteration, and improvement of the
    Executive Residence at the White House, $968,000, to remain
    available until expanded, for projects for required
    maintenance, safety and health issues, Presidential transition,
    telecommunications infrastructure repair, and continued
    preventive maintenance.

     Special Assistance to the President and the Official Residence of the
                                 Vice President

                             salaries and expenses

        For necessary expenses to enable the Vice President to
    provide assistance to the President in connection with
    specially assigned functions; services as authorized by 5
    U.S.C. 3109 and 3 U.S.C. 106, including subsistence expenses as
    authorized by 3 U.S.C. 106, which shall be expended and
    accounted for as provided in that section; and hire of
    passenger motor vehicles, $3,673,000.

                               operating expenses

                         (including transfer of funds)

        For the care, operation, refurnishing, improvement, heating
    and lighting, including electric power and fixtures, of the
    official residence of the Vice President; the hire of passenger
    motor vehicles; and not to exceed $90,000 for official
    entertainment expenses of the Vice President, to be accounted
    for solely on his certificate, $354,000: Provided, That
    advances or repayments or transfers from this appropriation may
    be made to any department or agency for expenses of carrying
    out such activities.

                          Council of Economic Advisers

                             salaries and expenses

        For necessary expenses of the Council of Economic Advisors
    in carrying out its functions under the Employment Act of 1946
    (15 U.S.C. 1021), $4,110,000.

                          Office of Policy Development

                             salaries and expenses

        For necessary expenses of the Office of Policy Development,
    including services as authorized by 5 U.S.C. 3109 and 3 U.S.C.
    107, $4,032,000.

                           National Security Council

                             salaries and expenses

        For necessary expenses of the National Security Council,
    including services as authorized by 5 U.S.C. 3109, $7,165,000.

                            Office of Administration

                             salaries and expenses

        For necessary expenses of the Office of Administration,
    including services as authorized by 5 U.S.C. 3109 and 3 U.S.C.
    107, and hire of passenger motor vehicles, $43,737,000, of
    which $9,905,000 shall be available until September 30, 2002
    for a capital investment plan which provides for the continued
    modernization of the information technology infrastructure.

                        Office of Management and Budget

                             salaries and expenses

        For necessary expenses of the Office of Management and
    Budget, including hire of passenger motor vehicles and services
    as authorized by 5 U.S.C. 3109, $68,786,000, of which not to
    exceed $5,000,000 shall be available to carry out the
    provisions of chapter 35 of title 44, United States Code:
    Provided, That, as provided in 31 U.S.C. 1301(a),
    appropriations shall be applied only to the objects for which
    appropriations were made except as otherwise provided by law:
    Provided further, That none of the funds appropriated in this
    Act for the Office of Management and Budget may be used for the
    purpose of reviewing any agricultural marketing orders or any
    activities or regulations under the provisions of the
    Agricultural Marketing Agreement Act of 1937 (7 U.S.C. 601 et
    seq.): Provided further, That none of the funds made available
    for the Office of Management and Budget by this Act may be
    expended for the altering of the transcript of actual testimony
    of witnesses, except for testimony of officials of the Office
    of Management and Budget, before the Committees on
    Appropriations or the Committees on Veterans' Affairs or their
    subcommittees: Provided further, That the preceding shall not
    apply to printed hearings released by the Committees on
    Appropriations or the Committees on Veterans' Affairs.

                     Office of National Drug Control Policy

                             salaries and expenses

                         (including transfer of funds)

        For necessary expenses of the Office of National Drug
    Control Policy; for research activities pursuant to the Office
    of National Drug Control Policy Reauthorization Act of 1998
    (title VII of division C of Public Law 105-277); not to exceed
    $8,000 for official reception and representation expenses; and
    for participation in joint projects or in the provision of
    services on matters of mutual interest with nonprofit,
    research, or public organizations or agencies, with or without
    reimbursement, $24,759,000, of which $2,100,000 shall remain
    available until expended, consisting of $1,100,000 for policy
    research and evaluation, and $1,000,000 for the National
    Alliance for Model State Drug Laws, and up to $600,000 for the
    evaluation of the Drug-Free Communities Act: Provided, That the
    Office is authorized to accept, hold, administer, and utilize
    gifts, both real and personal, public and private, without
    fiscal year limitation, for the purpose of aiding or
    facilitating the work of the Office.

                    counterdrug technology assessment center

                         (including transfer of funds)

        For necessary expenses for the Counterdrug Technology
    Assessment Center for research activities pursuant to the
    Office of National Drug Control Policy Reauthorization Act of
    1998 (title VII of Division C of Public Law 105-277),
    $29,053,000, which shall remain available until expended,
    consisting of $15,803,000 for counternarcotics research and
    development projects, and $13,250,000 for the continued
    operation of the technology transfer program: Provided, That
    the $15,803,000 for counternarcotics research and development
    projects shall be available for transfer to other Federal
    departments or agencies.

                         Federal Drug Control Programs

                 high intensity drug trafficking areas program

                         (including transfer of funds)

        For necessary expenses of the Office of National Drug
    Control Policy's High Intensity Drug Trafficking Areas Program,
    $206,500,000 for drug control activities consistent with the
    approved strategy for each of the designated High Intensity
    Drug Trafficking Areas, of which no less than 51 percent shall
    be transferred to State and local entities for drug control
    activities, which shall be obligated within 120 days of the
    date of the enactment of this Act: Provided, That up to 49
    percent, to remain available until September 30, 2002, may be
    transferred to Federal agencies and departments at a rate to be
    determined by the Director: Provided further, That, of this
    latter amount, $1,800,000 shall be used for auditing services:
    Provided further, That HIDTAs designated as of September 30,
    2000, shall be funded at fiscal year 2000 levels unless the
    Director submits to the Committees, and the Committees approve,
    justification for changes in those levels based on clearly
    articulated priorities for the HIDTA program, as well as
    published ONDCP performance measures of effectiveness.

                            special forfeiture fund

                         (including transfer of funds)

        For activities to support a national anti-drug campaign for
    youth, and other purposes, authorized by Public Law 105-277,
    $233,600,000, to remain available until expended: Provided,
    That such funds may be transferred to other Federal departments
    and agencies to carry out such activities: Provided further,
    That of the funds provided, $185,000,000 shall be to support a
    national media campaign, as authorized in the Drug-Free Media
    Campaign Act of 1998: Provided further, That of the funds
    provided, $3,300,000 shall be made available to the United
    States Olympic Committee's anti-doping program no later than 30
    days after the enactment of this Act: Provided further, That of
    the funds provided, $40,000,000 shall be to continue a program
    of matching grants to drug-free communities, as authorized in
    the Drug-Free Communities Act of 1997: Provided further, That
    of the funds provided, $1,000,000 shall be available to the
    National Drug Court Institute.
        This title may be cited as the ``Executive Office
    Appropriations Act, 2001''.

                         TITLE IV--INDEPENDENT AGENCIES

     Committee for Purchase From People Who are Blind or Severely Disabled

                             salaries and expenses

        For necessary expenses of the Committee for Purchase From
    People Who Are Blind or Severely Disabled established by the
    Act of June 23, 1971, Public Law 92-28, $4,158,000.

                          Federal Election Commission

                             salaries and expenses

        For necessary expenses to carry out the provisions of the
    Federal Election Campaign Act of 1971, as amended, $40,500,000,
    of which no less than $4,689,500 shall be available for
    internal automated data processing systems, and of which not to
    exceed $5,000 shall be available for reception and
    representation expenses.

                       Federal Labor Relations Authority

                             salaries and expenses

        For necessary expenses to carry out functions of the
    Federal Labor Relations Authority, pursuant to Reorganization
    Plan Numbered 2 of 1978, and the Civil Service Reform Act of
    1978, including services authorized by 5 U.S.C. 3109, including
    hire of experts and consultants, hire of passenger motor
    vehicles, and rental of conference rooms in the District of
    Columbia and elsewhere, $25,058,000: Provided, That public
    members of the Federal Service Impasses Panel may be paid
    travel expenses and per diem in lieu of subsistence as
    authorized by law (5 U.S.C. 5703) for persons employed
    intermittently in the Government service, and compensation as
    authorized by 5 U.S.C. 3109: Provided further, That
    notwithstanding 31 U.S.C. 3302, funds received from fees
    charged to non-Federal participants at labor-management
    relations conferences shall be credited to and merged with this
    account, to be available without further appropriation for the
    costs of carrying out these conferences.

                        General Services Administration

                            real property activities

                             federal buildings fund

                     limitations on availability of revenue

                         (including transfer of funds)

        For an additional amount to be deposited in, and to be used
    for the purposes of, the Fund established pursuant to section
    210(f) of the Federal Property and Administration Act of 1949,
    as amended (40 U.S.C. 490(f)), $464,154,000. The revenues and
    collections deposited into the Fund shall be available for
    necessary expenses of real property management and related
    activities not otherwise provided for, including operation,
    maintenance, and protection of federally owned and leased
    buildings; rental of buildings in the District of Columbia;
    restoration of leased premises; moving governmental agencies
    (including space adjustments and telecommunications relocation
    expenses) in connection with the assignment, allocation and
    transfer of space; contractual services incident to cleaning or
    servicing buildings, and moving; repair and alteration of
    federally owned buildings including grounds, approaches and
    appurtenances; care and safeguarding of sites; maintenance,
    preservation, demolition, and equipment; acquisition of
    buildings and sites by purchase, condemnation, or as otherwise
    authorized by law; acquisition of options to purchase buildings
    and sites; conversion and extension of federally owned
    buildings; preliminary planning and design of projects by
    contract or otherwise; construction of new buildings (including
    equipment for such buildings); and payment of principal,
    interest, and any other obligations for public buildings
    acquired by installment purchase and purchase contract; in the
    aggregate amount of $5,971,509,000 of which (1) $472,176,000
    shall remain available until expended for construction
    (including funds for sites and expenses and associated design
    and construction services) of additional projects at the
    following locations: California, Los Angeles, U.S. Courthouse;
    District of Columbia, Bureau of Alcohol, Tobacco and Firearms
    Headquarters; Florida, Saint Petersburg, Combined Law
    Enforcement Facility; Maryland, Montgomery County, Food and
    Drug Administration Consolidation; Michigan, Sault St. Marie,
    Border Station; Mississippi, Biloxi-Gulfport, U.S. Courthouse;
    Montana, Eureka/Roosville, Border Station; Virginia, Richmond,
    U.S. Courthouse; Washington, Seattle, U.S. Courthouse:
    Provided, That funding for any project identified above may be
    exceeded to the extent that savings are effected in other such
    projects, but not to exceed 10 percent of the amounts included
    in an approved prospectus, if required, unless advance approval
    is obtained from the Committees on Appropriations of a greater
    amount: Provided further, That all funds for direct
    construction projects shall expire on September 30, 2002, and
    remain in the Federal Buildings Fund except for funds for
    projects as to which funds for design or other funds have been
    obligated in whole or in part prior to such date; (2)
    $671,193,000 shall remain available until expended for repairs
    and alterations which includes associated design and
    construction services: Provided further, That funds in the
    Federal Buildings Fund for Repairs and Alterations shall, for
    prospectus projects, be limited to the amount by project, as
    follows, except each project may be increased by an amount not
    to exceed 10 percent unless advance approval is obtained from
    the Committees on Appropriations of a greater amount:
        Repairs and alterations:
                Arizona:
                        Phoenix, Federal Building Courthouse,
                    $26,962,000
                California:
                        Santa Ana, Federal Building, $27,864,000
                District of Columbia:
                        Internal Revenue Service Headquarters
                    (Phase 1), $31,780,000
                        Main State Building, (Phase 3), $28,775,000
                Maryland:
                        Woodlawn, SSA National Computer Center,
                    $4,285,000
                Michigan:
                        Detroit, McNamara Federal Building,
                    $26,999,000
                Missouri:
                        Kansas City, Richard Bolling Federal
                    Building, $25,882,000
                        Kansas City, Federal Building, 8930 Ward
                    Parkway, $8,964,000
                Nebraska:
                        Omaha, Zorinsky Federal Building,
                    $45,960,000
                New York:
                        New York City, 40 Foley Square, $5,037,000
                Ohio:
                        Cincinnati, Potter Stewart U.S. Courthouse,
                    $18,434,000
                Pennsylvania:
                        Pittsburgh, U.S. Post Office-Courthouse,
                    $54,144,000
                Utah:
                        Salt Lake City, Bennett Federal Building,
                    $21,199,000
                Virginia:
                        Reston, J.W. Powell Federal Building (Phase
                    2), $22,993,000
                Nationwide:
                        Design Program, $21,915,000
                        Energy Program, $5,000,000
                        Glass Fragment Retention Program,
                    $5,000,000
                        Basic Repairs and Alterations,
                    $290,000,000:
    Provided further, That additional projects for which
    prospectuses have been fully approved may be funded under this
    category only if advance notice is transmitted to the
    Committees on Appropriations: Provided further, That the
    amounts provided in this or any prior Act for ``Repairs and
    Alterations'' may be used to fund costs associated with
    implementing security improvements to buildings necessary to
    meet the minimum standards for security in accordance with
    current law and in compliance with the reprogramming guidelines
    of the appropriate Committees of the House and Senate: Provided
    further, That the difference between the funds appropriated and
    expended on any projects in this or any prior Act, under the
    heading ``Repairs and Alterations'', may be transferred to
    Basic Repairs and Alterations or used to fund authorized
    increases in prospectus projects: Provided further, That all
    funds for repairs and alterations prospectus projects shall
    expire on September 30, 2002, and remain in the Federal
    Buildings Fund except funds for projects as to which funds for
    design or other funds have been obligated in whole or in part
    prior to such date: Provided further, That the amount provided
    in this or any prior Act for Basic Repairs and Alterations may
    be used to pay claims against the Government arising from any
    projects under the heading ``Repairs and Alterations'' or used
    to fund authorized increases in prospectus projects; (3)
    $185,369,000 for installment acquisition payments including
    payments on purchase contracts which shall remain available
    until expended; (4) $2,944,905,000 for rental of space which
    shall remain available until expended; and (5) $1,624,771,000
    for building operations which shall remain available until
    expended: Provided further, That in addition to amounts made
    available herein, $276,400,000 shall be deposited to the Fund,
    to become available on October 1, 2001, and remain available
    until expended for the following construction projects
    (including funds for sites and expenses and associated design
    and construction services): District of Columbia, U.S.
    Courthouse Annex; Florida, Miami, U.S. Courthouse;
    Massachusetts, Springfield, U.S. Courthouse; New York, Buffalo,
    U.S. Courthouse: Provided further, That funding for any project
    identified above may be exceeded to the extent that savings are
    effected in other such projects, but not to exceed 10 percent
    of the amounts included in an approved prospectus, if required,
    unless advance approval is obtained from the Committees on
    Appropriations of a greater amount: Provided further, That
    funds available to the General Services Administration shall
    not be available for expenses of any construction, repair,
    alteration and acquisition project for which a prospectus, if
    required by the Public Buildings Act of 1959, as amended, has
    not been approved, except that necessary funds may be expended
    for each project for required expenses for the development of a
    proposed prospectus: Provided further, That funds available in
    the Federal Buildings Fund may be expended for emergency
    repairs when advance approval is obtained from the Committees
    on Appropriations: Provided further, That amounts necessary to
    provide reimbursable special services to other agencies under
    section 210(f)(6) of the Federal Property and Administrative
    Services Act of 1949, as amended (40 U.S.C. 490(f)(6)) and
    amounts to provide such reimbursable fencing, lighting, guard
    booths, and other facilities on private or other property not
    in Government ownership or control as may be appropriate to
    enable the United States Secret Service to perform its
    protective functions pursuant to 18 U.S.C. 3056, shall be
    available from such revenues and collections: Provided further,
    That revenues and collections and any other sums accruing to
    this Fund during fiscal year 2001, excluding reimbursements
    under section 210(f)(6) of the Federal Property and
    Administrative Services Act of 1949 (40 U.S.C. 490(f)(6)) in
    excess of $5,971,509,000 shall remain in the Fund and shall not
    be available for expenditure except as authorized in
    appropriations Acts.

                             policy and operations

        For expenses authorized by law, not otherwise provided for,
    for Government-wide policy and oversight activities associated
    with asset management activities; utilization and donation of
    surplus personal property; transportation; procurement and
    supply; Government-wide responsibilities relating to automated
    data management, telecommunications, information resources
    management, and related technology activities; utilization
    survey, deed compliance inspection, appraisal, environmental
    and cultural analysis, and land use planning functions
    pertaining to excess and surplus real property; agency-wide
    policy direction; Board of Contract Appeals; accounting,
    records management, and other support services incident to
    adjudication of Indian Tribal Claims by the United States Court
    of Federal Claims; services as authorized by 5 U.S.C. 3109; and
    not to exceed $5,000 for official reception and representation
    expenses, $123,920,000, of which $27,301,000 shall remain
    available until expended: Provided, That none of the funds
    appropriated from this Act shall be available to convert the
    Old Post Office at 1100 Pennsylvania Avenue in Northwest
    Washington, D.C., from office use to any other use until a
    comprehensive plan, which shall include street-level retail
    use, has been approved by the Senate Committee on
    Appropriations, the House Committee on Transportation and
    Infrastructure, and the Senate Committee on Environment and
    Public Works: Provided further, That no funds from this Act
    shall be available to acquire by purchase, condemnation, or
    otherwise the leasehold rights of the existing lease with
    private parties at the Old Post Office prior to the approval of
    the comprehensive plan by the Senate Committee on
    Appropriations, the House Committee on Transportation and
    Infrastructure, and the Senate Committee on Environment and
    Public Works.

                          office of inspector general

        For necessary expenses of the Office of Inspector General
    and services authorized by 5 U.S.C. 3109, $34,520,000:
    Provided, That not to exceed $15,000 shall be available for
    payment for information and detection of fraud against the
    Government, including payment for recovery of stolen Government
    property: Provided further, That not to exceed $2,500 shall be
    available for awards to employees of other Federal agencies and
    private citizens in recognition of efforts and initiatives
    resulting in enhanced Office of Inspector General
    effectiveness.

               allowances and office staff for former presidents

                         (including transfer of funds)

        For carrying out the provisions of the Act of August 25,
    1958, as amended (3 U.S.C. 102 note), and Public Law 95-138,
    $2,517,000: Provided, That the Administrator of General
    Services shall transfer to the Secretary of the Treasury such
    sums as may be necessary to carry out the provisions of such
    Acts.

                       expenses, presidential transition

        For expenses necessary to carry out the Presidential
    Transition Act of 1963, as amended, $7,100,000.

              General Services Administration--General Provisions

        Sec. 401. The appropriate appropriation or fund available
    to the General Services Administration shall be credited with
    the cost of operation, protection, maintenance, upkeep, repair,
    and improvement, included as part of rentals received from
    Government corporations pursuant to law (40 U.S.C. 129).
        Sec. 402. Funds available to the General Services
    Administration shall be available for the hire of passenger
    motor vehicles.
        Sec. 403. Funds in the Federal Buildings Fund made
    available for fiscal year 2001 for Federal Buildings Fund
    activities may be transferred between such activities only to
    the extent necessary to meet program requirements: Provided,
    That any proposed transfers shall be approved in advance by the
    Committees on Appropriations.
        Sec. 404. No funds made available by this Act shall be used
    to transmit a fiscal year 2002 request for United States
    Courthouse construction that: (1) does not meet the design
    guide standards for construction as established and approved by
    the General Services Administration, the Judicial Conference of
    the United States, and the Office of Management and Budget; and
    (2) does not reflect the priorities of the Judicial Conference
    of the United States as set out in its approved 5-year
    construction plan: Provided, That the fiscal year 2002 request
    must be accompanied by a standardized courtroom utilization
    study of each facility to be constructed, replaced, or
    expanded.
        Sec. 405. None of the funds provided in this Act may be
    used to increase the amount of occupiable square feet, provide
    cleaning services, security enhancements, or any other service
    usually provided through the Federal Buildings Fund, to any
    agency that does not pay the rate per square foot assessment
    for space and services as determined by the General Services
    Administration in compliance with the Public Buildings
    Amendments Act of 1972 (Public Law 92-313).
        Sec. 406. Funds provided to other Government agencies by
    the Information Technology Fund, General Services
    Administration, under 40 U.S.C. 757 and sections 5124(b) and
    5128 of Public Law 104-106, Information Technology Management
    Reform Act of 1996, for performance of pilot information
    technology projects which have potential for Government-wide
    benefits and savings, may be repaid to this Fund from any
    savings actually incurred by these projects or other funding,
    to the extent feasible.
        Sec. 407. From funds made available under the heading
    ``Federal Buildings Fund, Limitations on Availability of
    Revenue'', claims against the Government of less than $250,000
    arising from direct construction projects and acquisition of
    buildings may be liquidated from savings effected in other
    construction projects with prior notification to the Committees
    on Appropriations.
        Sec. 408. Section 411 of Public Law 106-58 is amended by
    striking ``April 30, 2001'' each place it appears and inserting
    ``April 30, 2002''.
        Sec. 409. Designation of Ronald N. Davies Federal Building
    and United States Courthouse. (a) The Federal building and
    courthouse located at 102 North 4th Street, Grand Forks, North
    Dakota, shall be known and designated as the ``Ronald N. Davies
    Federal Building and United States Courthouse''.
        (b) Any reference in a law, map, regulation, document,
    paper, or other record of the United States to the Federal
    building and courthouse referred to in section 1 shall be
    deemed to be a reference to the Ronald N. Davies Federal
    Building and United States Courthouse.
        Sec. 410. From the funds made available under the heading
    ``Federal Buildings Fund Limitations on Revenue'', in addition
    to amounts provided in budget activities above, up to
    $2,500,000 shall be available for the construction of a road
    and acquisition of the property necessary for construction of
    said road and associated port of entry facilities: Provided,
    That said property shall include a 125 foot wide right of way
    beginning approximately 700 feet east of Highway 11 at the
    northeast corner of the existing port facilities and going
    north approximately 4,750 feet and approximately 10.22 acres
    adjacent to the port of entry in Township 29 S. Range 8W.,
    Section 14: Provided further, That construction of the road
    shall occur only after this property is deeded and conveyed to
    the United States by and through the General Services
    Administration without reimbursement or cost to the United
    States at the election of its current landholder: Provided
    further, That notwithstanding any other provision of law, and
    subject to the foregoing conditions, the Administrator of
    General Services shall construct a road to the Columbus, New
    Mexico Port of Entry Station on the property, connecting the
    port with a road to be built by the County of Luna, New Mexico
    to connect to State Highway 11: Provided further, That
    notwithstanding any other provision of law, Luna County shall
    construct the roadway from State Highway 11 to the terminus of
    the northbound road to be constructed by the General Services
    Administration in time for completion of the road to be
    constructed by the General Services Administration in time for
    completion of the road to be constructed by the General
    Services Administration: Provided further, That upon completion
    of the construction of the road by the General Services
    Administration, and notwithstanding any other provision of law,
    the Administrator of General Services shall convey to the
    municipality of Luna County, New Mexico, without reimbursement,
    all right, title, and interest of the United States to that
    portion of the property constituting the improved road and
    standard county road right of way which is not required for the
    operation of the port of entry: Provided further, That the
    General Services Administration on behalf of the United States
    upon conveyance of the property to the municipality of Luna,
    New Mexico, shall retain the balance of the property located
    adjacent to the port, consisting of approximately 12 acres, to
    be owned or otherwise managed by the Administrator pursuant to
    the Federal Property and Administrative Services Act of 1949,
    as amended: Provided further, That the General Services
    Administration is authorized to acquire such additional real
    property and rights in real property as may be necessary to
    construct said road and provide a contiguous site for the port
    of entry: Provided further, That the United States shall incur
    no liability for any environmental laws or conditions existing
    at the property at the time of conveyance to the United States
    or in connection with the construction of the road: Provided
    further, That Luna County and the Village of Columbus shall be
    responsible for providing adequate access and egress to
    existing properties east of the port of entry: Provided
    further, That the Bureau of Land Management, the International
    Boundary and Water Commission, the Federal Inspection Agencies
    and the Department of State shall take all actions necessary to
    facilitate the construction of the road and expansion of the
    port facilities.
        Sec. 411. Designation of J. Bratton Davis United States
    Bankruptcy Courthouse. (a) The United States bankruptcy
    courthouse at 1100 Laurel Street in Columbia, South Carolina,
    shall be known and designated as the ``J. Bratton Davis United
    States Bankruptcy Courthouse''.
        (b) Any reference in a law, map, regulation, document,
    paper, or other record of the United States to the United
    States bankruptcy courthouse referred to in subsection (a)
    shall be deemed to be a reference to the ``J. Bratton Davis
    United States Bankruptcy Courthouse''.
        Sec. 412. (a) The United States Courthouse Annex located at
    901 19th Street in Denver, Colorado is hereby designated as the
    ``Alfred A. Arraj United States Courthouse Annex''.
        (b) Any reference in a law, map, regulation, document, or
    paper or other record of the United States to the Courthouse
    Annex herein referred to in subsection (a) shall be deemed to
    be a reference to the ``Alfred A. Arraj United States
    Courthouse Annex''.
        Sec. 413. Designation of the Paul Coverdell Dormitory. The
    dormitory building currently being constructed on the Core
    Campus of the Federal Law Enforcement Training Center in
    Glynco, Georgia, shall be known and designated as the ``Paul
    Coverdell Dormitory''.

                         Merit Systems Protection Board

                             salaries and expenses

                         (including transfer of funds)

        For necessary expenses to carry out functions of the Merit
    Systems Protection Board pursuant to Reorganization Plan
    Numbered 2 of 1978 and the Civil Service Reform Act of 1978,
    including services as authorized by 5 U.S.C. 3109, rental of
    conference rooms in the District of Columbia and elsewhere,
    hire of passenger motor vehicles, and direct procurement of
    survey printing, $29,437,000 together with not to exceed
    $2,430,000 for administrative expenses to adjudicate retirement
    appeals to be transferred from the Civil Service Retirement and
    Disability Fund in amounts determined by the Merit Systems
    Protection Board.

       Federal Payment to Morris K. Udall Scholarship and Excellence in
                    National Environmental Policy Foundation

        For payment to the Morris K. Udall Scholarship and
    Excellence in National Environmental Trust Fund, to be
    available for the purposes of Public Law 102-252, $2,000,000,
    to remain available until expended.

                     Environmental Dispute Resolution Fund

        For payment to the Environmental Dispute Resolution Fund to
    carry out activities authorized in the Environmental Policy and
    Conflict Resolution Act of 1998, $1,250,000, to remain
    available until expended.

                  National Archives and Records Administration

                               operating expenses

        For necessary expenses in connection with the
    administration of the National Archives (including the
    Information Security Oversight Office) and archived Federal
    records and related activities, as provided by law, and for
    expenses necessary for the review and declassification of
    documents, and for the hire of passenger motor vehicles,
    $209,393,000: Provided, That the Archivist of the United States
    is authorized to use any excess funds available from the amount
    borrowed for construction of the National Archives facility,
    for expenses necessary to provide adequate storage for
    holdings.

                            repairs and restoration

        For the repair, alteration, and improvement of archives
    facilities, and to provide adequate storage for holdings,
    $95,150,000, to remain available until expended of which
    $88,000,000 is to complete renovation of the National Archives
    Building.

            National Historical Publications and Records Commission

                                 grants program

                        (including rescission of funds)

        For necessary expenses for allocations and grants for
    historical publications and records as authorized by 44 U.S.C.
    2504, as amended, $6,450,000, to remain available until
    expended.

                          Office of Government Ethics

                             salaries and expenses

        For necessary expenses to carry out functions of the Office
    of Government Ethics pursuant to the Ethics in Government Act
    of 1978, as amended and the Ethics Reform Act of 1989,
    including services as authorized by 5 U.S.C. 3109, rental of
    conference rooms in the District of Columbia and elsewhere,
    hire of passenger motor vehicles, and not to exceed $1,500 for
    official reception and representation expenses, $9,684,000.

                         Office of Personnel Management

                             salaries and expenses

                      (including transfer of trust funds)

        For necessary expenses to carry out functions of the Office
    of Personnel Management pursuant to Reorganization Plan
    Numbered 2 of 1978 and the Civil Service Reform Act of 1978,
    including services as authorized by 5 U.S.C. 3109; medical
    examinations performed for veterans by private physicians on a
    fee basis; rental of conference rooms in the District of
    Columbia and elsewhere; hire of passenger motor vehicles; not
    to exceed $2,500 for official reception and representation
    expenses; advances for reimbursements to applicable funds of
    the Office of Personnel Management and the Federal Bureau of
    Investigation for expenses incurred under Executive Order No.
    10422 of January 9, 1953, as amended; and payment of per diem
    and/or subsistence allowances to employees where Voting Rights
    Act activities require an employee to remain overnight at his
    or her post of duty, $94,095,000; and in addition $101,986,000
    for administrative expenses, to be transferred from the
    appropriate trust funds of the Office of Personnel Management
    without regard to other statutes, including direct procurement
    of printed materials, for the retirement and insurance
    programs, of which $10,500,000 shall remain available until
    expended for the cost of automating the retirement
    recordkeeping systems: Provided, That the provisions of this
    appropriation shall not affect the authority to use applicable
    trust funds as provided by sections 8348(a)(1)(B) and 8909(g)
    of title 5, United States Code: Provided further, That no part
    of this appropriation shall be available for salaries and
    expenses of the Legal Examining Unit of the Office of Personnel
    Management established pursuant to Executive Order No. 9358 of
    July 1, 1943, or any successor unit of like purpose: Provided
    further, That the President's Commission on White House
    Fellows, established by Executive Order No. 11183 of October 3,
    1964, may, during fiscal year 2001, accept donations of money,
    property, and personal services in connection with the
    development of a publicity brochure to provide information
    about the White House Fellows, except that no such donations
    shall be accepted for travel or reimbursement of travel
    expenses, or for the salaries of employees of such Commission.

                          office of inspector general

                             salaries and expenses

                      (including transfer of trust funds)

        For necessary expenses of the Office of Inspector General
    in carrying out the provisions of the Inspector General Act, as
    amended, including services as authorized by 5 U.S.C. 3109,
    hire of passenger motor vehicles, $1,360,000; and in addition,
    not to exceed $9,745,000 for administrative expenses to audit,
    investigate, and provide other oversight of the Office of
    Personnel Management's retirement and insurance programs, to be
    transferred from the appropriate trust funds of the Office of
    Personnel Management, as determined by the Inspector General:
    Provided, That the Inspector General is authorized to rent
    conference rooms in the District of Columbia and elsewhere.

          government payment for annuitants, employees health benefits

        For payment of Government contributions with respect to
    retired employees, as authorized by chapter 89 of title 5,
    United States Code, and the Retired Federal Employees Health
    Benefits Act (74 Stat. 849), as amended, such sums as may be
    necessary.

           government payment for annuitants, employee life insurance

        For payment of Government contributions with respect to
    employees retiring after December 31, 1989, as required by
    chapter 87 of title 5, United States Code, such sums as may be
    necessary.

            payment to civil service retirement and disability fund

        For financing the unfunded liability of new and increased
    annuity benefits becoming effective on or after October 20,
    1969, as authorized by 5 U.S.C. 8348, and annuities under
    special Acts to be credited to the Civil Service Retirement and
    Disability Fund, such sums as may be necessary: Provided, That
    annuities authorized by the Act of May 29, 1944, as amended,
    and the Act of August 19, 1950, as amended (33 U.S.C. 771-775),
    may hereafter be paid out of the Civil Service Retirement and
    Disability Fund.

                           Office of Special Counsel

                             salaries and expenses

        For necessary expenses to carry out functions of the Office
    of Special Counsel pursuant to Reorganization Plan Numbered 2
    of 1978, the Civil Service Reform Act of 1978 (Public Law 95-
    454), the Whistleblower Protection Act of 1989 (Public Law 101-
    12), Public Law 103-424, and the Uniformed Services Employment
    and Reemployment Act of 1994 (Public Law 103-353), including
    services as authorized by 5 U.S.C. 3109, payment of fees and
    expenses for witnesses, rental of conference rooms in the
    District of Columbia and elsewhere, and hire of passenger motor
    vehicles, $11,147,000.

                            United States Tax Court

                             salaries and expenses

        For necessary expenses, including contract reporting and
    other services as authorized by 5 U.S.C. 3109, $37,305,000:
    Provided, That travel expenses of the judges shall be paid upon
    the written certificate of the judge.
        This title may be cited as the ``Independent Agencies
    Appropriations Act, 2001''.

                          TITLE V--GENERAL PROVISIONS

                                    This Act

        Sec. 501. No part of any appropriation contained in this
    Act shall remain available for obligation beyond the current
    fiscal year unless expressly so provided herein.
        Sec. 502. The expenditure of any appropriation under this
    Act for any consulting service through procurement contract,
    pursuant to 5 U.S.C. 3109, shall be limited to those contracts
    where such expenditures are a matter of public record and
    available for public inspection, except where otherwise
    provided under existing law, or under existing Executive order
    issued pursuant to existing law.
        Sec. 503. None of the funds made available by this Act
    shall be available for any activity or for paying the salary of
    any Government employee where funding an activity or paying a
    salary to a Government employee would result in a decision,
    determination, rule, regulation, or policy that would prohibit
    the enforcement of section 307 of the Tariff Act of 1930.
        Sec. 504. None of the funds made available by this Act
    shall be available in fiscal year 2001 for the purpose of
    transferring control over the Federal Law Enforcement Training
    Center located at Glynco, Georgia, and Artesia, New Mexico, out
    of the Department of the Treasury.
        Sec. 505. No part of any appropriation contained in this
    Act shall be available to pay the salary for any person filling
    a position, other than a temporary position, formerly held by
    an employee who has left to enter the Armed Forces of the
    United States and has satisfactorily completed his period of
    active military or naval service, and has within 90 days after
    his release from such service or from hospitalization
    continuing after discharge for a period of not more than 1
    year, made application for restoration to his former position
    and has been certified by the Office of Personnel Management as
    still qualified to perform the duties of his former position
    and has not been restored thereto.
        Sec. 506. No funds appropriated pursuant to this Act may be
    expended by an entity unless the entity agrees that in
    expending the assistance the entity will comply with sections 2
    through 4 of the Act of March 3, 1933 (41 U.S.C. 10a-10c,
    popularly known as the ``Buy American Act'').
        Sec. 507. (a) Purchase of American-Made Equipment and
    Products.--In the case of any equipment or products that may be
    authorized to be purchased with financial assistance provided
    under this Act, it is the sense of the Congress that entities
    receiving such assistance should, in expending the assistance,
    purchase only American-made equipment and products.
        (b) Notice to Recipients of Assistance.--In providing
    financial assistance under this Act, the Secretary of the
    Treasury shall provide to each recipient of the assistance a
    notice describing the statement made in subsection (a) by the
    Congress.
        Sec. 508. If it has been finally determined by a court or
    Federal agency that any person intentionally affixed a label
    bearing a ``Made in America'' inscription, or any inscription
    with the same meaning, to any product sold in or shipped to the
    United States that is not made in the United States, such
    person shall be ineligible to receive any contract or
    subcontract made with funds provided pursuant to this Act,
    pursuant to the debarment, suspension, and ineligibility
    procedures described in sections 9.400 through 9.409 of title
    48, Code of Federal Regulations.
        Sec. 509. No funds appropriated by this Act shall be
    available to pay for an abortion, or the administrative
    expenses in connection with any health plan under the Federal
    employees health benefit program which provides any benefits or
    coverage for abortions.
        Sec. 510. The provision of section 509 shall not apply
    where the life of the mother would be endangered if the fetus
    were carried to term, or the pregnancy is the result of an act
    of rape or incest.
        Sec. 511. Except as otherwise specifically provided by law,
    not to exceed 50 percent of unobligated balances remaining
    available at the end of fiscal year 2001 from appropriations
    made available for salaries and expenses for fiscal year 2001
    in this Act, shall remain available through September 30, 2002,
    for each such account for the purposes authorized: Provided,
    That a request shall be submitted to the Committees on
    Appropriations for approval prior to the expenditure of such
    funds: Provided further, That these requests shall be made in
    compliance with reprogramming guidelines.
        Sec. 512. None of the funds made available in this Act may
    be used by the Executive Office of the President to request
    from the Federal Bureau of Investigation any official
    background investigation report on any individual, except
    when--
                (1) such individual has given his or her express
            written consent for such request not more than 6 months
            prior to the date of such request and during the same
            presidential administration; or
                (2) such request is required due to extraordinary
            circumstances involving national security.
        Sec. 513. The cost accounting standards promulgated under
    section 26 of the Office of Federal Procurement Policy Act
    (Public Law 93-400; 41 U.S.C. 422) shall not apply with respect
    to a contract under the Federal Employees Health Benefits
    Program established under chapter 89 of title 5, United States
    Code.
        Sec. 514. (a) In General.--As soon as practicable after the
    date of the enactment of this Act, the Archivist of the United
    States shall transfer to the Gerald R. Ford Foundation, as
    trustee, all right, title, and interest of the United States in
    and to the approximately 2.3 acres of land located within Grand
    Rapids, Michigan, and further described in subsection (b), such
    grant to be in trust, with the beneficiary being the National
    Archives and Records Administration, for the purpose of
    supporting the facilities and programs of the Gerald R. Ford
    Museum in Grand Rapids, Michigan, and the Gerald R. Ford
    Library in Ann Arbor, Michigan, in accordance with a trust
    agreement to be agreed upon by the Archivist and the Gerald R.
    Ford Foundation.
        (b) Land Description.--The land to be transferred pursuant
    to subsection (a) is described as follows:
        The following premises in the City of Grand Rapids, County
    of Kent, State of Michigan, described as:
          That part of Block 2, Converse Plat, and that part of
    Block 2 of J.W. Converse Replatted Addition, and that part of
    Government Lot 1 of Section 25, T7N, R12W, City of Grand
    Rapids, Kent County, Michigan, described as: BEGINNING at the
    NE corner of Lot 1 of Block 2 of Converse Plat; thence East
    245.0 feet along the South line of Bridge Street; thence South
    230.0 feet along a line which is parallel with and 170 feet
    East from the East line of Front Avenue as originally platted;
    thence West 207.5 feet parallel with the South line of Bridge
    Street; thence South along the centerline of vacated Front
    Avenue 109 feet more or less to the extended centerline of
    vacated Douglas Street; thence West along the centerline of
    vacated Douglas Street 237.5 feet more or less to the East line
    of Scribner Avenue; thence North along the East line of
    Scribner Avenue 327 feet more or less to a point which is 7.0
    feet South from the NW corner of Lot 8 of Block 2 of Converse
    Plat; thence Easterly 200 feet more or less to the place of
    beginning, also described as:
          Parcel A--Lots 9 & 10, Block 2 of Converse Plat, being
    the subdivision of Government Lots 1 & 2, Section 25, T7N,
    R12W; also Lots 11-24, Block 2 of J.W. Converse Replatted
    Addition; also part of N \1/2\ of Section 25, T7N, R12W
    commencing at SE corner Lot 24, Block 2 of J.W. Converse
    Replatted Addition, thence N to NE corner of Lot 9 of Converse
    Plat, thence E 16 feet, thence S to SW corner of Lot 23 of J.W.
    Converse Replatted Addition, thence W 16 feet to beginning.
          Parcel B--Part of Section 25, T7N, R12W, commencing on S
    line of Bridge Street 50 feet E of E line of Front Avenue,
    thence S 107.85 feet, thence 77 feet, thence N to a point on S
    line of said street which is 80 feet E of beginning, thence W
    to beginning.
          Parcel C--Part of Section 25, T7N, R12W, commencing at SE
    corner Bridge Street & Front Avenue, thence E 50 feet, thence S
    107.85 feet to alley, thence W 50 feet to E line Front Avenue,
    thence N 106.81 feet to beginning.
          Parcel D--Part of Government Lot 1, Section 25, T7N,
    R12W, commencing at a point on S line of Bridge Street (66,
    wide) 170 feet E of E line of Front Avenue (75, wide), thence S
    230 feet parallel with Front Avenue, thence W 170 feet parallel
    with Bridge Street to E line of Front Avenue, thence N along
    said line to a point 106.81 feet S of intersection of said line
    with extension of N & S line of Bridge Street, thence E 127
    feet, thence northerly to a point on S line of Bridge Street
    130 feet E of E line of Front Avenue, thence E along S line of
    Bridge Street to beginning.
          Parcel E--Lots 1 through 8 of Block 2 of Converse Plat,
    being the subdivision of Government Lots 1 and 2, Section 25,
    T7N, R12W.
          Also part of N \1/2\ of Section 25, T7N, R12W, commencing
    at NW corner of Lot 9, Block 2 of J.W. Converse Replatted
    Addition; thence N 15 feet to SW corner of Lot 8; thence E 200
    feet to SE corner Lot 1; thence S 15 feet to NE corner of Lot
    10; thence W 200 feet to beginning.
          Together with any portion of vacated streets and alleys
    that have become part of the above property.
        (c) Terms and Conditions.--
                (1) Compensation.--The land transferred pursuant to
            subsection (a) shall be transferred without
            compensation to the United States.
                (2) Appointment of successor trustee.--In the event
            that the Gerald R. Ford Foundation for any reason is
            unable or unwilling to continue to serve as trustee,
            the Archivist of the United States is authorized to
            appoint a successor trustee.
                (3) Reversionary interest.--If the Archivist of the
            United States determines that the Gerald R. Ford
            Foundation (or a successor trustee appointed under
            paragraph (2)) has breached its fiduciary duty under
            the trust agreement entered into pursuant to this
            section, the land transferred pursuant to subsection
            (a) shall revert to the United States under the
            administrative jurisdiction of the Archivist.
        Sec. 515. (a) In General.--The Director of the Office of
    Management and Budget shall, by not later than September 30,
    2001, and with public and Federal agency involvement, issue
    guidelines under sections 3504(d)(1) and 3516 of title 44,
    United States Code, that provide policy and procedural guidance
    to Federal agencies for ensuring and maximizing the quality,
    objectivity, utility, and integrity of information (including
    statistical information) disseminated by Federal agencies in
    fulfillment of the purposes and provisions of chapter 35 of
    title 44, United States Code, commonly referred to as the
    Paperwork Reduction Act.
        (b) Content of Guidelines.--The guidelines under subsection
    (a) shall--
                (1) apply to the sharing by Federal agencies of,
            and access to, information disseminated by Federal
            agencies; and
                (2) require that each Federal agency to which the
            guidelines apply--
                        (A) issue guidelines ensuring and
                    maximizing the quality, objectivity, utility,
                    and integrity of information (including
                    statistical information) disseminated by the
                    agency, by not later than 1 year after the date
                    of issuance of the guidelines under subsection
                    (a);
                        (B) establish administrative mechanisms
                    allowing affected persons to seek and obtain
                    correction of information maintained and
                    disseminated by the agency that does not comply
                    with the guidelines issued under subsection
                    (a); and
                        (C) report periodically to the Director--
                                (i) the number and nature of
                            complaints received by the agency
                            regarding the accuracy of information
                            disseminated by the agency; and
                                (ii) how such complaints were
                            handled by the agency.
        Sec. 516. For the purpose of resolving litigation and
    implementing any settlement agreements regarding the nonforeign
    area cost-of-living allowance program, the Office of Personnel
    Management may accept and utilize (without regard to any
    restriction on unanticipated travel expenses imposed in an
    Appropriations Act) funds made available to the Office pursuant
    to court approval.
        Sec. 517. None of the funds appropriated by this Act shall
    be used to propose or issue rules, regulations, decrees, or
    orders for the purpose of implementation, or in preparation for
    implementation, of the Kyoto Protocol, which was adopted on
    December 11, 1997, in Kyoto, Japan, at the Third Conference of
    the Parties to the United Nations Framework Convention on
    Climate Change, which has not been submitted to the Senate for
    advice and consent to ratification pursuant to article II,
    section 2, clause 2, of the United States Constitution, and
    which has not entered into force pursuant to article 25 of the
    Protocol.
        Sec. 518. Not later than July 1, 2001, the Director of the
    Office of Management and Budget shall submit a report to the
    Committee on Appropriations and the Committee on Governmental
    Affairs in the Senate and the Committee on Appropriations and
    the Committee on Government Reform of the House of
    Representatives that (1) evaluates, for each agency, the extent
    to which implementation of chapter 35 of title 31, United
    States Code, as amended by the Paperwork Reduction Act of 1995
    (Public Law 104-13), has reduced burden imposed by rules issued
    by the agency, including the burden imposed by each major rule
    issued by the agency; (2) includes a determination, based on
    such evaluation, of the need for additional procedures to
    ensure achievement of the purposes of that chapter, as set
    forth in section 3501 of title 31, United States Code, and
    evaluates the burden imposed by each major rule that imposes
    more than 10,000,000 hours of burden, and identifies specific
    reductions expected to be achieved in each of fiscal years 2001
    and 2002 in the burden imposed by all rules issued by each
    agency that issued such a major rule.

                          TITLE VI--GENERAL PROVISIONS

                    Departments, Agencies, and Corporations

        Sec. 601. Funds appropriated in this or any other Act may
    be used to pay travel to the United States for the immediate
    family of employees serving abroad in cases of death or life
    threatening illness of said employee.
        Sec. 602. No department, agency, or instrumentality of the
    United States receiving appropriated funds under this or any
    other Act for fiscal year 2001 shall obligate or expend any
    such funds, unless such department, agency, or instrumentality
    has in place, and will continue to administer in good faith, a
    written policy designed to ensure that all of its workplaces
    are free from the illegal use, possession, or distribution of
    controlled substances (as defined in the Controlled Substances
    Act) by the officers and employees of such department, agency,
    or instrumentality.
        Sec. 603. Unless otherwise specifically provided, the
    maximum amount allowable during the current fiscal year in
    accordance with section 16 of the Act of August 2, 1946 (60
    Stat. 810), for the purchase of any passenger motor vehicle
    (exclusive of buses, ambulances, law enforcement, and
    undercover surveillance vehicles), is hereby fixed at $8,100
    except station wagons for which the maximum shall be $9,100:
    Provided, That these limits may be exceeded by not to exceed
    $3,700 for police-type vehicles, and by not to exceed $4,000
    for special heavy-duty vehicles: Provided further, That the
    limits set forth in this section may not be exceeded by more
    than 5 percent for electric or hybrid vehicles purchased for
    demonstration under the provisions of the Electric and Hybrid
    Vehicle Research, Development, and Demonstration Act of 1976:
    Provided further, That the limits set forth in this section may
    be exceeded by the incremental cost of clean alternative fuels
    vehicles acquired pursuant to Public Law 101-549 over the cost
    of comparable conventionally fueled vehicles.
        Sec. 604. Appropriations of the executive departments and
    independent establishments for the current fiscal year
    available for expenses of travel, or for the expenses of the
    activity concerned, are hereby made available for quarters
    allowances and cost-of-living allowances, in accordance with 5
    U.S.C. 5922-5924.
        Sec. 605. Unless otherwise specified during the current
    fiscal year, no part of any appropriation contained in this or
    any other Act shall be used to pay the compensation of any
    officer or employee of the Government of the United States
    (including any agency the majority of the stock of which is
    owned by the Government of the United States) whose post of
    duty is in the continental United States unless such person:
    (1) is a citizen of the United States; (2) is a person in the
    service of the United States on the date of the enactment of
    this Act who, being eligible for citizenship, has filed a
    declaration of intention to become a citizen of the United
    States prior to such date and is actually residing in the
    United States; (3) is a person who owes allegiance to the
    United States; (4) is an alien from Cuba, Poland, South
    Vietnam, the countries of the former Soviet Union, or the
    Baltic countries lawfully admitted to the United States for
    permanent residence; (5) is a South Vietnamese, Cambodian, or
    Laotian refugee paroled in the United States after January 1,
    1975; or (6) is a national of the People's Republic of China
    who qualifies for adjustment of status pursuant to the Chinese
    Student Protection Act of 1992: Provided, That for the purpose
    of this section, an affidavit signed by any such person shall
    be considered prima facie evidence that the requirements of
    this section with respect to his or her status have been
    complied with: Provided further, That any person making a false
    affidavit shall be guilty of a felony, and, upon conviction,
    shall be fined no more than $4,000 or imprisoned for not more
    than 1 year, or both: Provided further, That the above penal
    clause shall be in addition to, and not in substitution for,
    any other provisions of existing law: Provided further, That
    any payment made to any officer or employee contrary to the
    provisions of this section shall be recoverable in action by
    the Federal Government. This section shall not apply to
    citizens of Ireland, Israel, or the Republic of the
    Philippines, or to nationals of those countries allied with the
    United States in a current defense effort, or to international
    broadcasters employed by the United States Information Agency,
    or to temporary employment of translators, or to temporary
    employment in the field service (not to exceed 60 days) as a
    result of emergencies.
        Sec. 606. Appropriations available to any department or
    agency during the current fiscal year for necessary expenses,
    including maintenance or operating expenses, shall also be
    available for payment to the General Services Administration
    for charges for space and services and those expenses of
    renovation and alteration of buildings and facilities which
    constitute public improvements performed in accordance with the
    Public Buildings Act of 1959 (73 Stat. 749), the Public
    Buildings Amendments of 1972 (87 Stat. 216), or other
    applicable law.
        Sec. 607. In addition to funds provided in this or any
    other Act, all Federal agencies are authorized to receive and
    use funds resulting from the sale of materials, including
    Federal records disposed of pursuant to a records schedule
    recovered through recycling or waste prevention programs. Such
    funds shall be available until expended for the following
    purposes:
                (1) Acquisition, waste reduction and prevention,
            and recycling programs as described in Executive Order
            No. 13101 (September 14, 1998), including any such
            programs adopted prior to the effective date of the
            Executive order.
                (2) Other Federal agency environmental management
            programs, including, but not limited to, the
            development and implementation of hazardous waste
            management and pollution prevention programs.
                (3) Other employee programs as authorized by law or
            as deemed appropriate by the head of the Federal
            agency.
        Sec. 608. Funds made available by this or any other Act for
    administrative expenses in the current fiscal year of the
    corporations and agencies subject to chapter 91 of title 31,
    United States Code, shall be available, in addition to objects
    for which such funds are otherwise available, for rent in the
    District of Columbia; services in accordance with 5 U.S.C.
    3109; and the objects specified under this head, all the
    provisions of which shall be applicable to the expenditure of
    such funds unless otherwise specified in the Act by which they
    are made available: Provided, That in the event any functions
    budgeted as administrative expenses are subsequently
    transferred to or paid from other funds, the limitations on
    administrative expenses shall be correspondingly reduced.
        Sec. 609. No part of any appropriation for the current
    fiscal year contained in this or any other Act shall be paid to
    any person for the filling of any position for which he or she
    has been nominated after the Senate has voted not to approve
    the nomination of said person.
        Sec. 610. No part of any appropriation contained in this or
    any other Act shall be available for interagency financing of
    boards (except Federal Executive Boards), commissions,
    councils, committees, or similar groups (whether or not they
    are interagency entities) which do not have a prior and
    specific statutory approval to receive financial support from
    more than one agency or instrumentality.
        Sec. 611. Funds made available by this or any other Act to
    the Postal Service Fund (39 U.S.C. 2003) shall be available for
    employment of guards for all buildings and areas owned or
    occupied by the Postal Service and under the charge and control
    of the Postal Service, and such guards shall have, with respect
    to such property, the powers of special policemen provided by
    the first section of the Act of June 1, 1948, as amended (62
    Stat. 281; 40 U.S.C. 318), and, as to property owned or
    occupied by the Postal Service, the Postmaster General may take
    the same actions as the Administrator of General Services may
    take under the provisions of sections 2 and 3 of the Act of
    June 1, 1948, as amended (62 Stat. 281; 40 U.S.C. 318a and
    318b), attaching thereto penal consequences under the authority
    and within the limits provided in section 4 of the Act of June
    1, 1948, as amended (62 Stat. 281; 40 U.S.C. 318c).
        Sec. 612. None of the funds made available pursuant to the
    provisions of this Act shall be used to implement, administer,
    or enforce any regulation which has been disapproved pursuant
    to a resolution of disapproval duly adopted in accordance with
    the applicable law of the United States.
        Sec. 613. (a) Notwithstanding any other provision of law,
    and except as otherwise provided in this section, no part of
    any of the funds appropriated for fiscal year 2001, by this or
    any other Act, may be used to pay any prevailing rate employee
    described in section 5342(a)(2)(A) of title 5, United States
    Code--
                (1) during the period from the date of expiration
            of the limitation imposed by section 613 of the
            Treasury and General Government Appropriations Act,
            2000, until the normal effective date of the applicable
            wage survey adjustment that is to take effect in fiscal
            year 2001, in an amount that exceeds the rate payable
            for the applicable grade and step of the applicable
            wage schedule in accordance with such section 613; and
                (2) during the period consisting of the remainder
            of fiscal year 2001, in an amount that exceeds, as a
            result of a wage survey adjustment, the rate payable
            under paragraph (1) by more than the sum of--
                        (A) the percentage adjustment taking effect
                    in fiscal year 2001 under section 5303 of title
                    5, United States Code, in the rates of pay
                    under the General Schedule; and
                        (B) the difference between the overall
                    average percentage of the locality-based
                    comparability payments taking effect in fiscal
                    year 2001 under section 5304 of such title
                    (whether by adjustment or otherwise), and the
                    overall average percentage of such payments
                    which was effective in fiscal year 2000 under
                    such section.
        (b) Notwithstanding any other provision of law, no
    prevailing rate employee described in subparagraph (B) or (C)
    of section 5342(a)(2) of title 5, United States Code, and no
    employee covered by section 5348 of such title, may be paid
    during the periods for which subsection (a) is in effect at a
    rate that exceeds the rates that would be payable under
    subsection (a) were subsection (a) applicable to such employee.
        (c) For the purposes of this section, the rates payable to
    an employee who is covered by this section and who is paid from
    a schedule not in existence on September 30, 2000, shall be
    determined under regulations prescribed by the Office of
    Personnel Management.
        (d) Notwithstanding any other provision of law, rates of
    premium pay for employees subject to this section may not be
    changed from the rates in effect on September 30, 2000, except
    to the extent determined by the Office of Personnel Management
    to be consistent with the purpose of this section.
        (e) This section shall apply with respect to pay for
    service performed after September 30, 2000.
        (f) For the purpose of administering any provision of law
    (including any rule or regulation that provides premium pay,
    retirement, life insurance, or any other employee benefit) that
    requires any deduction or contribution, or that imposes any
    requirement or limitation on the basis of a rate of salary or
    basic pay, the rate of salary or basic pay payable after the
    application of this section shall be treated as the rate of
    salary or basic pay.
        (g) Nothing in this section shall be considered to permit
    or require the payment to any employee covered by this section
    at a rate in excess of the rate that would be payable were this
    section not in effect.
        (h) The Office of Personnel Management may provide for
    exceptions to the limitations imposed by this section if the
    Office determines that such exceptions are necessary to ensure
    the recruitment or retention of qualified employees.
        Sec. 614. During the period in which the head of any
    department or agency, or any other officer or civilian employee
    of the Government appointed by the President of the United
    States, holds office, no funds may be obligated or expended in
    excess of $5,000 to furnish or redecorate the office of such
    department head, agency head, officer, or employee, or to
    purchase furniture or make improvements for any such office,
    unless advance notice of such furnishing or redecoration is
    expressly approved by the Committees on Appropriations. For the
    purposes of this section, the word ``office'' shall include the
    entire suite of offices assigned to the individual, as well as
    any other space used primarily by the individual or the use of
    which is directly controlled by the individual.
        Sec. 615. Notwithstanding any other provision of law, no
    executive branch agency shall purchase, construct, and/or lease
    any additional facilities, except within or contiguous to
    existing locations, to be used for the purpose of conducting
    Federal law enforcement training without the advance approval
    of the Committees on Appropriations, except that the Federal
    Law Enforcement Training Center is authorized to obtain the
    temporary use of additional facilities by lease, contract, or
    other agreement for training which cannot be accommodated in
    existing Center facilities.
        Sec. 616. Notwithstanding section 1346 of title 31, United
    States Code, or section 610 of this Act, funds made available
    for fiscal year 2001 by this or any other Act shall be
    available for the interagency funding of national security and
    emergency preparedness telecommunications initiatives which
    benefit multiple Federal departments, agencies, or entities, as
    provided by Executive Order No. 12472 (April 3, 1984).
        Sec. 617. (a) None of the funds appropriated by this or any
    other Act may be obligated or expended by any Federal
    department, agency, or other instrumentality for the salaries
    or expenses of any employee appointed to a position of a
    confidential or policy-determining character excepted from the
    competitive service pursuant to section 3302 of title 5, United
    States Code, without a certification to the Office of Personnel
    Management from the head of the Federal department, agency, or
    other instrumentality employing the Schedule C appointee that
    the Schedule C position was not created solely or primarily in
    order to detail the employee to the White House.
        (b) The provisions of this section shall not apply to
    Federal employees or members of the armed services detailed to
    or from--
                (1) the Central Intelligence Agency;
                (2) the National Security Agency;
                (3) the Defense Intelligence Agency;
                (4) the offices within the Department of Defense
            for the collection of specialized national foreign
            intelligence through reconnaissance programs;
                (5) the Bureau of Intelligence and Research of the
            Department of State;
                (6) any agency, office, or unit of the Army, Navy,
            Air Force, and Marine Corps, the Federal Bureau of
            Investigation and the Drug Enforcement Administration
            of the Department of Justice, the Department of
            Transportation, the Department of the Treasury, and the
            Department of Energy performing intelligence functions;
            and
                (7) the Director of Central Intelligence.
        Sec. 618. No department, agency, or instrumentality of the
    United States receiving appropriated funds under this or any
    other Act for fiscal year 2001 shall obligate or expend any
    such funds, unless such department, agency, or instrumentality
    has in place, and will continue to administer in good faith, a
    written policy designed to ensure that all of its workplaces
    are free from discrimination and sexual harassment and that all
    of its workplaces are not in violation of title VII of the
    Civil Rights Act of 1964, as amended, the Age Discrimination in
    Employment Act of 1967, and the Rehabilitation Act of 1973.
        Sec. 619. None of the funds made available in this Act for
    the United States Customs Service may be used to allow the
    importation into the United States of any good, ware, article,
    or merchandise mined, produced, or manufactured by forced or
    indentured child labor, as determined pursuant to section 307
    of the Tariff Act of 1930 (19 U.S.C. 1307).
        Sec. 620. No part of any appropriation contained in this or
    any other Act shall be available for the payment of the salary
    of any officer or employee of the Federal Government, who--
                (1) prohibits or prevents, or attempts or threatens
            to prohibit or prevent, any other officer or employee
            of the Federal Government from having any direct oral
            or written communication or contact with any Member,
            committee, or subcommittee of the Congress in
            connection with any matter pertaining to the employment
            of such other officer or employee or pertaining to the
            department or agency of such other officer or employee
            in any way, irrespective of whether such communication
            or contact is at the initiative of such other officer
            or employee or in response to the request or inquiry of
            such Member, committee, or subcommittee; or
                (2) removes, suspends from duty without pay,
            demotes, reduces in rank, seniority, status, pay, or
            performance of efficiency rating, denies promotion to,
            relocates, reassigns, transfers, disciplines, or
            discriminates in regard to any employment right,
            entitlement, or benefit, or any term or condition of
            employment of, any other officer or employee of the
            Federal Government, or attempts or threatens to commit
            any of the foregoing actions with respect to such other
            officer or employee, by reason of any communication or
            contact of such other officer or employee with any
            Member, committee, or subcommittee of the Congress as
            described in paragraph (1).
        Sec. 621. (a) None of the funds made available in this or
    any other Act may be obligated or expended for any employee
    training that--
                (1) does not meet identified needs for knowledge,
            skills, and abilities bearing directly upon the
            performance of official duties;
                (2) contains elements likely to induce high levels
            of emotional response or psychological stress in some
            participants;
                (3) does not require prior employee notification of
            the content and methods to be used in the training and
            written end of course evaluation;
                (4) contains any methods or content associated with
            religious or quasi-religious belief systems or ``new
            age'' belief systems as defined in Equal Employment
            Opportunity Commission Notice N-915.022, dated
            September 2, 1988; or
                (5) is offensive to, or designed to change,
            participants' personal values or lifestyle outside the
            workplace.
        (b) Nothing in this section shall prohibit, restrict, or
    otherwise preclude an agency from conducting training bearing
    directly upon the performance of official duties.
        Sec. 622. No funds appropriated in this or any other Act
    may be used to implement or enforce the agreements in Standard
    Forms 312 and 4414 of the Government or any other nondisclosure
    policy, form, or agreement if such policy, form, or agreement
    does not contain the following provisions: ``These restrictions
    are consistent with and do not supersede, conflict with, or
    otherwise alter the employee obligations, rights, or
    liabilities created by Executive Order No. 12958; section 7211
    of title 5, U.S.C. (governing disclosures to Congress); section
    1034 of title 10, United States Code, as amended by the
    Military Whistleblower Protection Act (governing disclosure to
    Congress by members of the military); section 2302(b)(8) of
    title 5, United States Code, as amended by the Whistleblower
    Protection Act (governing disclosures of illegality, waste,
    fraud, abuse or public health or safety threats); the
    Intelligence Identities Protection Act of 1982 (50 U.S.C. 421
    et seq.) (governing disclosures that could expose confidential
    Government agents); and the statutes which protect against
    disclosure that may compromise the national security, including
    sections 641, 793, 794, 798, and 952 of title 18, United States
    Code, and section 4(b) of the Subversive Activities Act of 1950
    (50 U.S.C. 783(b)). The definitions, requirements, obligations,
    rights, sanctions, and liabilities created by said Executive
    order and listed statutes are incorporated into this agreement
    and are controlling.'': Provided, That notwithstanding the
    preceding paragraph, a nondisclosure policy form or agreement
    that is to be executed by a person connected with the conduct
    of an intelligence or intelligence-related activity, other than
    an employee or officer of the United States Government, may
    contain provisions appropriate to the particular activity for
    which such document is to be used. Such form or agreement
    shall, at a minimum, require that the person will not disclose
    any classified information received in the course of such
    activity unless specifically authorized to do so by the United
    States Government. Such nondisclosure forms shall also make it
    clear that they do not bar disclosures to Congress or to an
    authorized official of an executive agency or the Department of
    Justice that are essential to reporting a substantial violation
    of law.
        Sec. 623. No part of any funds appropriated in this or any
    other Act shall be used by an agency of the executive branch,
    other than for normal and recognized executive-legislative
    relationships, for publicity or propaganda purposes, and for
    the preparation, distribution or use of any kit, pamphlet,
    booklet, publication, radio, television or film presentation
    designed to support or defeat legislation pending before the
    Congress, except in presentation to the Congress itself.
        Sec. 624. (a) In General.--For calendar year 2002 and each
    year thereafter, the Director of the Office of Management and
    Budget shall prepare and submit to Congress, with the budget
    submitted under section 1105 of title 31, United States Code,
    an accounting statement and associated report containing--
                (1) an estimate of the total annual costs and
            benefits (including quantifiable and nonquantifiable
            effects) of Federal rules and paperwork, to the extent
            feasible--
                        (A) in the aggregate;
                        (B) by agency and agency program; and
                        (C) by major rule;
                (2) an analysis of impacts of Federal regulation on
            State, local, and tribal government, small business,
            wages, and economic growth; and
                (3) recommendations for reform.
        (b) Notice.--The Director of the Office of Management and
    Budget shall provide public notice and an opportunity to
    comment on the statement and report under subsection (a) before
    the statement and report are submitted to Congress.
        (c) Guidelines.--To implement this section, the Director of
    the Office of Management and Budget shall issue guidelines to
    agencies to standardize--
                (1) measures of costs and benefits; and
                (2) the format of accounting statements.
        (d) Peer Review.--The Director of the Office of Management
    and Budget shall provide for independent and external peer
    review of the guidelines and each accounting statement and
    associated report under this section. Such peer review shall
    not be subject to the Federal Advisory Committee Act (5 U.S.C.
    App.).
        Sec. 625. None of the funds appropriated by this or any
    other Act may be used by an agency to provide a Federal
    employee's home address to any labor organization except when
    the employee has authorized such disclosure or when such
    disclosure has been ordered by a court of competent
    jurisdiction.
        Sec. 626. Hereafter, the Secretary of the Treasury is
    authorized to establish scientific certification standards for
    explosives detection canines, and shall provide, on a
    reimbursable basis, for the certification of explosives
    detection canines employed by Federal agencies, or other
    agencies providing explosives detection services at airports in
    the United States.
        Sec. 627. None of the funds made available in this Act or
    any other Act may be used to provide any non-public information
    such as mailing or telephone lists to any person or any
    organization outside of the Federal Government without the
    approval of the Committees on Appropriations.
        Sec. 628. No part of any appropriation contained in this or
    any other Act shall be used for publicity or propaganda
    purposes within the United States not heretofore authorized by
    the Congress.
        Sec. 629. (a) In this section the term ``agency''--
                (1) means an Executive agency as defined under
            section 105 of title 5, United States Code;
                (2) includes a military department as defined under
            section 102 of such title, the Postal Service, and the
            Postal Rate Commission; and
                (3) shall not include the General Accounting
            Office.
        (b) Unless authorized in accordance with law or regulations
    to use such time for other purposes, an employee of an agency
    shall use official time in an honest effort to perform official
    duties. An employee not under a leave system, including a
    Presidential appointee exempted under section 6301(2) of title
    5, United States Code, has an obligation to expend an honest
    effort and a reasonable proportion of such employee's time in
    the performance of official duties.
        Sec. 630. (a) None of the funds appropriated by this Act
    may be used to enter into or renew a contract which includes a
    provision providing prescription drug coverage, except where
    the contract also includes a provision for contraceptive
    coverage.
        (b) Nothing in this section shall apply to a contract
    with--
                (1) any of the following religious plans:
                        (A) Personal Care's HMO;
                        (B) Care Choices;
                        (C) OSF Health Plans, Inc.; and
                (2) any existing or future plan, if the carrier for
            the plan objects to such coverage on the basis of
            religious beliefs.
        (c) In implementing this section, any plan that enters into
    or renews a contract under this section may not subject any
    individual to discrimination on the basis that the individual
    refuses to prescribe or otherwise provide for contraceptives
    because such activities would be contrary to the individual's
    religious beliefs or moral convictions.
        (d) Nothing in this section shall be construed to require
    coverage of abortion or abortion-related services.
        Sec. 631. Notwithstanding 31 U.S.C. 1346 and section 610 of
    this Act, funds made available for fiscal year 2001 by this or
    any other Act to any department or agency, which is a member of
    the Joint Financial Management Improvement Program (JFMIP),
    shall be available to finance an appropriate share of JFMIP
    administrative costs, as determined by the JFMIP, but not to
    exceed a total of $800,000 including the salary of the
    Executive Director and staff support.
        Sec. 632. Notwithstanding 31 U.S.C. 1346 and section 610 of
    this Act, the head of each Executive department and agency is
    hereby authorized to transfer to the ``Policy and Operations''
    account, General Services Administration, with the approval of
    the Director of the Office of Management and Budget, funds made
    available for fiscal year 2001 by this or any other Act,
    including rebates from charge card and other contracts. These
    funds shall be administered by the Administrator of General
    Services to support Government-wide financial, information
    technology, procurement, and other management innovations,
    initiatives, and activities, as approved by the Director of the
    Office of Management and Budget, in consultation with the
    appropriate interagency groups designated by the Director
    (including the Chief Financial Officers Council and the Joint
    Financial Management Improvement Program for financial
    management initiatives, the Chief Information Officers Council
    for information technology initiatives, and the Procurement
    Executives Council for procurement initiatives). The total
    funds transferred shall not exceed $17,000,000. Such transfers
    may only be made 15 days following notification of the
    Committees on Appropriations by the Director of the Office of
    Management and Budget.
        Sec. 633. (a) In General.--In accordance with regulations
    promulgated by the Office of Personnel Management, an Executive
    agency which provides or proposes to provide child care
    services for Federal employees may use appropriated funds
    (otherwise available to such agency for salaries and expenses)
    to provide child care, in a Federal or leased facility, or
    through contract, for civilian employees of such agency.
        (b) Affordability.--Amounts so provided with respect to any
    such facility or contractor shall be applied to improve the
    affordability of child care for lower income Federal employees
    using or seeking to use the child care services offered by such
    facility or contractor.
        (c) Definition.--For purposes of this section, the term
    ``Executive agency'' has the meaning given such term by section
    105 of title 5, United States Code, but does not include the
    General Accounting Office.
        (d) Notification.--None of the funds made available in this
    or any other Act may be used to implement the provisions of
    this section absent advance notification to the Committees on
    Appropriations.
        Sec. 634. Notwithstanding any other provision of law, a
    woman may breastfeed her child at any location in a Federal
    building or on Federal property, if the woman and her child are
    otherwise authorized to be present at the location.
        Sec. 635. Nothwithstanding section 1346 of title 31, United
    States Code, or section 610 of this Act, funds made available
    for fiscal year 2001 by this or any other Act shall be
    available for the interagency funding of specific projects,
    workshops, studies, and similar efforts to carry out the
    purposes of the National Science and Technology Council
    (authorized by Executive Order No. 12881), which benefit
    multiple Federal departments, agencies, or entities: Provided,
    That the Office of Management and Budget shall provide a report
    describing the budget of and resources connected with the
    National Science and Technology Council to the Committees on
    Appropriations, the House Committee on Science; and the Senate
    Committee on Commerce, Science, and Transportation 90 days
    after enactment of this Act.
        Sec. 636. Retirement Provisions Relating to Certain Members
    of the Police Force of the Metropolitan Washington Airports
    Authority.--(a) Qualified MWAA Police Officer Defined.--For
    purposes of this section, the term ``qualified MWAA police
    officer'' means any individual who, as of the date of the
    enactment of this Act--
                (1) is employed as a member of the police force of
            the Metropolitan Washington Airports Authority
            (hereinafter in this section referred to as an ``MWAA
            police officer''); and
                (2) is subject to the Civil Service Retirement
            System or the Federal Employees' Retirement System by
            virtue of section 49107(b) of title 49, United States
            Code.
        (b) Eligibility To Be Treated as a Law Enforcement Officer
    for Retirement Purposes.--
                (1) In general.--Any qualified MWAA police officer
            may, by written election submitted in accordance with
            applicable requirements under subsection (c), elect to
            be treated as a law enforcement officer (within the
            meaning of section 8331 or 8401 of title 5, United
            States Code, as applicable), and to have all prior
            service described in paragraph (2) similarly treated.
                (2) Prior service described.--The service described
            in this paragraph is all service which an individual
            performed, prior to the effective date of such
            individual's election under this section, as--
                        (A) an MWAA police officer; or
                        (B) a member of the police force of the
                    Federal Aviation Administration (hereinafter in
                    this section referred to as an ``FAA police
                    officer'').
        (c) Regulations.--The Office of Personnel Management shall
    prescribe any regulations necessary to carry out this section,
    including provisions relating to the time, form, and manner in
    which any election under this section shall be made. Such an
    election shall not be effective unless--
                (1) it is made before the employee separates from
            service with the Metropolitan Washington Airports
            Authority, but in no event later than 1 year after the
            regulations under this subsection take effect; and
                (2) it is accompanied by payment of an amount equal
            to, with respect to all prior service of such employee
            which is described in subsection (b)(2)--
                        (A) the employee deductions that would have
                    been required for such service under chapter 83
                    or 84 of title 5, U.S.C. (as the case may be)
                    if such election had then been in effect, minus
                        (B) the total employee deductions and
                    contributions under such chapter 83 and 84 (as
                    applicable) that were actually made for such
                    service,
            taking into account only amounts required to be
            credited to the Civil Service Retirement and Disability
            Fund. Any amount under paragraph (2) shall be computed
            with interest, in accordance with section 8334(e) of
            such title 5.
        (d) Government Contributions.--Whenever a payment under
    subsection (c)(2) is made by an individual with respect to such
    individual's prior service (as described in subsection (b)(2)),
    the Metropolitan Washington Airports Authority shall pay into
    the Civil Service Retirement and Disability Fund any additional
    contributions for which it would have been liable, with respect
    to such service, if such individual's election under this
    section had then been in effect (and, to the extent of any
    prior FAA police officer service, as if it had then been the
    employing agency). Any amount under this subsection shall be
    computed with interest, in accordance with section 8334(e) of
    title 5, United States Code.
        (e) Certifications.--The Office of Personnel Management
    shall accept, for the purpose of this section, the
    certification of--
                (1) the Metropolitan Washington Airports Authority
            (or its designee) concerning any service performed by
            an individual as an MWAA police officer; and
                (2) the Federal Aviation Administration (or its
            designee) concerning any service performed by an
            individual as an FAA police officer.
        (f) Reimbursement To Compensate for Unfunded Liability.--
                (1) In general.--The Metropolitan Washington
            Airports Authority shall pay into the Civil Service
            Retirement and Disability Fund an amount (as determined
            by the Director of the Office of Personnel Management)
            equal to the amount necessary to reimburse the Fund for
            any estimated increase in the unfunded liability of the
            Fund (to the extent the Civil Service Retirement System
            is involved), and for any estimated increase in the
            supplemental liability of the Fund (to the extent the
            Federal Employees' Retirement System is involved),
            resulting from the enactment of this section.
                (2) Payment method.--The Metropolitan Washington
            Airports Authority shall pay the amount so determined
            in five equal annual installments, with interest (which
            shall be computed at the rate used in the most recent
            valuation of the Federal Employees' Retirement System).
        Sec. 637. (a) For purposes of this section--
                (1) the term ``comparability payment'' refers to a
            locality-based comparability payment under section 5304
            of title 5, United States Code;
                (2) the term ``President's pay agent'' refers to
            the pay agent described in section 5302(4) of such
            title; and
                (3) the term ``pay locality'' has the meaning given
            such term by section 5302(5) of such title.
        (b) Notwithstanding any provision of section 5304 of title
    5, United States Code, for purposes of determining appropriate
    pay localities and making comparability payment
    recommendations, the President's pay agent may, in accordance
    with succeeding provisions of this section, make comparisons of
    General Schedule pay and non-Federal pay within any of the
    metropolitan statistical areas described in subsection (d)(3),
    using--
                (1) data from surveys of the Bureau of Labor
            Statistics;
                (2) salary data sets obtained under subsection (c);
            or
                (3) any combination thereof.
        (c) To the extent necessary in order to carry out this
    section, the President's pay agent may obtain any salary data
    sets (referred to in subsection (b)) from any organization or
    entity that regularly compiles similar data for businesses in
    the private sector.
        (d)(1)(A) This paragraph applies with respect to the five
    metropolitan statistical areas described in paragraph (3)
    which--
                (i) have the highest levels of nonfarm employment
            (as determined based on data made available by the
            Bureau of Labor Statistics); and
                (ii) as of the date of the enactment of this Act,
            have not previously been surveyed by the Bureau of
            Labor Statistics (as discrete pay localities) for
            purposes of section 5304 of title 5, United States
            Code.
        (B) The President's pay agent, based on such comparisons
    under subsection (b) as the pay agent considers appropriate,
    shall: (i) determine whether any of the five areas under
    subparagraph (A) warrants designation as a discrete pay
    locality; and (ii) if so, make recommendations as to what level
    of comparability payments would be appropriate during 2002 for
    each area so determined.
        (C)(i) Any recommendations under subparagraph (B)(ii) shall
    be included--
                (I) in the pay agent's report under section
            5304(d)(1) of title 5, United States Code, submitted
            for purposes of comparability payments scheduled to
            become payable in 2002; or
                (II) if compliance with subclause (I) is
            impracticable, in a supplementary report which the pay
            agent shall submit to the President and the Congress no
            later than March 1, 2001.
        (ii) In the event that the recommendations are completed in
    time to be included in the report described in clause (i)(I), a
    copy of those recommendations shall be transmitted by the pay
    agent to the Congress contemporaneous with their submission to
    the President.
        (D) Each of the five areas under subparagraph (A) that so
    warrants, as determined by the President's pay agent, shall be
    designated as a discrete pay locality under section 5304 of
    title 5, United States Code, in time for it to be treated as
    such for purposes of comparability payments becoming payable in
    2002.
        (2) The President's pay agent may, at any time after the
    180th day following the submission of the report under
    subsection (f), make any initial or further determinations or
    recommendations under this section, based on any pay
    comparisons under subsection (b), with respect to any area
    described in paragraph (3).
        (3) An area described in this paragraph is any metropolitan
    statistical area within the continental United States that (as
    determined based on data made available by the Bureau of Labor
    Statistics and the Office of Personnel Management,
    respectively) has a high level of nonfarm employment and at
    least 2,500 General Schedule employees whose post of duty is
    within such area.
        (e)(1) The authority under this section to make pay
    comparisons and to make any determinations or recommendations
    based on such comparisons shall be available to the President's
    pay agent only for purposes of comparability payments becoming
    payable on or after January 1, 2002, and before January 1,
    2007, and only with respect to areas described in subsection
    (d)(3).
        (2) Any comparisons and recommendations so made shall, if
    included in the pay agent's report under section 5304(d)(1) of
    title 5, United States Code, for any year (or the pay agent's
    supplementary report, in accordance with subsection
    (d)(1)(C)(i)(II)), be considered and acted on as the pay
    agent's comparisons and recommendations under such section
    5304(d)(1) for the area and the year involved.
        (f)(1) No later than March 1, 2001, the President's pay
    agent shall submit to the Committee on Government Reform of the
    House of Representatives, the Committee on Governmental Affairs
    of the Senate, and the Committees on Appropriations of the
    House of Representatives and of the Senate, a report on the use
    of pay comparison data, as described in subsection (b)(2) or
    (3) (as appropriate), for purposes of comparability payments.
        (2) The report shall include the cost of obtaining such
    data, the rationale underlying the decisions reached based on
    such data, and the relative advantages and disadvantages of
    using such data (including whether the effort involved in
    analyzing and integrating such data is commensurate with the
    benefits derived from their use). The report may include
    specific recommendations regarding the continued use of such
    data.
        (g)(1) No later than May 1, 2001, the President's pay agent
    shall prepare and submit to the committees specified in
    subsection (f)(1) a report relating to the ongoing efforts of
    the Office of Personnel Management, the Office of Management
    and Budget, and the Bureau of Labor Statistics to revise the
    methodology currently being used by the Bureau of Labor
    Statistics in performing its surveys under section 5304 of
    title 5, United States Code.
        (2) The report shall include a detailed accounting of any
    concerns the pay agent may have regarding the current
    methodology, the specific projects the pay agent has directed
    any of those agencies to undertake in order to address those
    concerns, and a time line for the anticipated completion of
    those projects and for implementation of the revised
    methodology.
        (3) The report shall also include recommendations as to how
    those ongoing efforts might be expedited, including any
    additional resources which, in the opinion of the pay agent,
    are needed in order to expedite completion of the activities
    described in the preceding provisions of this subsection, and
    the reasons why those additional resources are needed.
        Sec. 638. Federal Funds Identified. Any request for
    proposals, solicitation, grant application, form, notification,
    press release, or other publications involving the distribution
    of Federal funds shall indicate the agency providing the funds
    and the amount provided. This provision shall apply to direct
    payments, formula funds, and grants received by a State
    receiving Federal funds.

    SEC. 639. MANDATORY REMOVAL FROM EMPLOYMENT OF FEDERAL LAW ENFORCEMENT
                        OFFICERS CONVICTED OF FELONIES.

          (a) In General.--Chapter 73 of title 5, United States
    Code, is amended by adding after subchapter VI the following:

     ``SUBCHAPTER VII--MANDATORY REMOVAL FROM EMPLOYMENT OF CONVICTED LAW
                              ENFORCEMENT OFFICERS

    ``Sec. 7371. Mandatory removal from employment of law enforcement
                        officers convicted of felonies

        ``(a) In this section, the term--
                ``(1) `conviction notice date' means the date on
            which an agency that employs a law enforcement officer
            has notice that the officer has been convicted of a
            felony that is entered by a Federal or State court,
            regardless of whether that conviction is appealed or is
            subject to appeal; and
                ``(2) `law enforcement officer' has the meaning
            given that term under section 8331(20) or 8401(17).
        ``(b) Any law enforcement officer who is convicted of a
    felony shall be removed from employment as a law enforcement
    officer on the last day of the first applicable pay period
    following the conviction notice date.
          ``(c)(1) This section does not prohibit the removal of an
    individual from employment as a law enforcement officer before
    a conviction notice date if the removal is properly effected
    other than under this section.
          ``(2) This section does not prohibit the employment of
    any individual in any position other than that of a law
    enforcement officer.
          ``(d) If the conviction is overturned on appeal, the
    removal shall be set aside retroactively to the date on which
    the removal occurred, with back pay under section 5596 for the
    period during which the removal was in effect, unless the
    removal was properly effected other than under this section.
          ``(e)(1) If removal is required under this section, the
    agency shall deliver written notice to the employee as soon as
    practicable, and not later than 5 calendar days after the
    conviction notice date. The notice shall include a description
    of the specific reasons for the removal, the date of removal,
    and the procedures made applicable under paragraph (2).
          ``(2) The procedures under section 7513 (b) (2), (3), and
    (4), (c), (d), and (e) shall apply to any removal under this
    section. The employee may use the procedures to contest or
    appeal a removal, but only with respect to whether--
                ``(A) the employee is a law enforcement officer;
                ``(B) the employee was convicted of a felony; or
                ``(C) the conviction was overturned on appeal.
          ``(3) A removal required under this section shall occur
    on the date specified in subsection (b) regardless of whether
    the notice required under paragraph (1) of this subsection and
    the procedures made applicable under paragraph (2) of this
    subsection have been provided or completed by that date.''.
          (b) Technical and Conforming Amendment.--The table of
    sections for chapter 73 of title 5, United States Code, is
    amended by adding after the item relating to section 7363 the
    following:

     ``SUBCHAPTER VII--MANDATORY REMOVAL FROM EMPLOYMENT OF LAW ENFORCEMENT
                                    OFFICERS

    ``7371. Mandatory removal from employment of law enforcement officers
              convicted of felonies.''.

          (c) Effective Date.--The amendments made by this section
    shall take effect 30 days after the date of enactment of this
    Act and shall apply to any conviction of a felony entered by a
    Federal or State court on or after that date.
          Sec. 640. Section 504 of the Department of Transportation
    and Related Agencies Appropriations Act, 2001 (as enacted into
    law by Public Law 106-346) is repealed.
        Sec. 641. (a) Section 5545b(d) of title 5, United States
    Code, is amended by inserting at the end the following new
    paragraph:
                ``(4) Notwithstanding section 8114(e)(1), overtime
            pay for a firefighter subject to this section for hours
            in a regular tour of duty shall be included in any
            computation of pay under section 8114.''.
        (b) The amendment in subsection (a) shall be effective as
    if it had been enacted as part of the Federal Firefighters
    Overtime Pay Reform Act of 1998 (112 Stat. 2681-519).
        Sec. 642. Section 6323(a) of title 5, United States Code,
    is amended by adding at the end the following:
                ``(3) The minimum charge for leave under this
            subsection is one hour, and additional charges are in
            multiples thereof.''.
        Sec. 643. Section 616 of the Treasury, Postal Service and
    General Government Appropriations Act, 1988, as contained in
    the Act of December 22, 1987 (40 U.S.C. 490b), is amended by
    adding at the end the following:
        ``(e)(1) All existing and newly hired workers in any child
    care center located in an executive facility shall undergo a
    criminal history background check as defined in section 231 of
    the Crime Control Act of 1990 (42 U.S.C. 13041).
        ``(2) For purposes of this subsection, the term `executive
    facility' means a facility that is owned or leased by an office
    or entity within the executive branch of the Government
    (including one that is owned or leased by the General Services
    Administration on behalf of an office or entity within the
    judicial branch of the Government).
        ``(3) Nothing in this subsection shall be considered to
    apply with respect to a facility owned by or leased on behalf
    of an office or entity within the legislative branch of the
    Government.''.
          Sec. 644. Section 501 of the Department of Transportation
    and Related Agencies Appropriations Act, 2001 (as enacted into
    law by Public Law 106-346) is amended by striking subsection
    (c) and by redesignating subsection (d) as subsection (c).
        Sec. 645. (a)(1) Title 5, United States Code, is amended by
    inserting after section 5372a the following:

    ``Sec. 5372b. Administrative appeals judges

        ``(a) For the purpose of this section--
                ``(1) the term `administrative appeals judge
            position' means a position the duties of which
            primarily involve reviewing decisions of administrative
            law judges appointed under section 3105; and
                ``(2) the term `agency' means an Executive agency,
            as defined by section 105, but does not include the
            General Accounting Office.
        ``(b) Subject to such regulations as the Office of
    Personnel Management may prescribe, the head of the agency
    concerned shall fix the rate of basic pay for each
    administrative appeals judge position within such agency which
    is not classified above GS-15 pursuant to section 5108.
        ``(c) A rate of basic pay fixed under this section shall
    be--
                ``(1) not less than the minimum rate of basic pay
            for level AL-3 under section 5372; and
                ``(2) not greater than the maximum rate of basic
            pay for level AL-3 under section 5372.''.
        (2) Section 7323(b)(2)(B)(ii) of title 5, United States
    Code, is amended by striking ``or 5372a'' and inserting
    ``5372a, or 5372b''.
        (3) The table of sections for chapter 53 of title 5, United
    States Code, is amended by inserting after the item relating to
    section 5372a the following:

    ``5372b. Administrative appeals judges.''.

        (b) The amendment made by subsection (a)(1) shall apply
    with respect to pay for service performed on or after the first
    day of the first applicable pay period beginning on or after--
                (1) the 120th day after the date of the enactment
            of this Act; or
                (2) if earlier, the effective date of regulations
            prescribed by the Office of Personnel Management to
            carry out such amendment.
        Sec. 646. Not later than 60 days after the date of
    enactment of this Act, the Inspector General of each department
    or agency shall submit to Congress a report that discloses any
    activity of the applicable department or agency relating to--
                (1) the collection or review of singular data, or
            the creation of aggregate lists that include personally
            identifiable information, about individuals who access
            any Internet site of the department or agency; and
                (2) entering into agreements with third parties,
            including other government agencies, to collect,
            review, or obtain aggregate lists or singular data
            containing personally identifiable information relating
            to any individual's access or viewing habits for
            governmental and nongovernmental Internet sites.
        This Act may be cited as the ``Treasury and General
    Government Appropriations Act, 2001''.

     TREASURY DEPARTMENT, THE UNITED STATES POSTAL SERVICE, THE EXECUTIVE
           OFFICE OF THE PRESIDENT, AND CERTAIN INDEPENDENT AGENCIES
                                 APPROPRIATIONS

          Following is explanatory language on H.R. 5658, as
    introduced on December 14, 2000.
          The conferees on H.R. 4577 agree with the matter included
    in H.R. 5658 and enacted in this conference report by reference
    and the following description. This bill was developed through
    negotiations by subcommittee members of the Treasury, Postal
    Service, General Government Appropriations Subcommittees of the
    House and Senate on the differences in the House passed and
    Senate reported versions of H.R. 4871. References in the
    following description to the ``conference agreement'' mean the
    matter included in the introduced bill enacted by this
    conference report. References to the House bill mean the House
    passed version of H.R. 4871. References to the Senate reported
    bill or Senate reported amendment mean the Senate reported
    version of H.R. 4871.
          H.R. 4871, the House passed Treasury, Postal Service, and
    General Government Appropriation Bill, 2001, and S. 2900, the
    Senate reported Treasury and General Government Appropriation
    Bill, 2001, were the basis for development of the introduced
    bill. The following statement is an explanation of the action
    agreed upon in resolving the differences of those two bills and
    recommended in the accompanying conference report.
          The conference agreement on the Treasury and General
    Government Appropriations Act, 2001, incorporates some of the
    language and allocations set forth in House Report 106-756 and
    in the Senate Report to accompany S. 2900. The language in
    these reports should be complied with unless specifically
    addressed in the accompanying statement of managers. Throughout
    the accompanying explanatory statement, the managers refer to
    the Committee and the Committees on Appropriations. Unless
    otherwise noted, in both instances, the managers are referring
    to the House Subcommittee on Treasury, Postal Service, and
    General Government and the Senate Subcommittee on Treasury and
    General Government.

                 Reprogramming and Transfer of Funds Guidelines

          The conference agreement includes the following
    reprogramming guidelines which shall be complied with by all
    agencies funded by the Treasury and General Government
    Appropriations Act, 2001:
                1. Except under extraordinary and emergency
            situations, the Committees on Appropriations will not
            consider requests for a reprogramming or a transfer of
            funds, or use of unobligated balances, which are
            submitted after the close of the third quarter of the
            fiscal year, June 30;
                2. Clearly stated and detailed documentation
            presenting justification for the reprogramming,
            transfer, or use of unobligated balances shall
            accompany each request;
                3. For agencies, departments, or offices receiving
            appropriations in excess of $20,000,000, a
            reprogramming shall be submitted if the amount to be
            shifted to or from any object class, budget activity,
            program line item, or program activity involved is in
            excess of $500,000 or 10 percent, whichever is greater,
            of the object class, budget activity, program line
            item, or program activity;
                4. For agencies, departments, or offices receiving
            appropriations less than $20,000,000, a reprogramming
            shall be submitted if the amount to be shifted to or
            from any object class, budget activity, program line
            item, or program activity involved is in excess of
            $50,000, or 10 percent, whichever is greater, of the
            object class, budget activity, program line item, or
            program activity;
                5. For any action where the cumulative effect of
            below threshold reprogramming actions, or past
            reprogramming and/or transfer actions added to the
            request, would exceed the dollar threshold mentioned
            above, a reprogramming shall be submitted;
                6. For any action which would result in a major
            change to the program or item which is different than
            that presented to and approved by either of the
            Committees, or the Congress, a reprogramming shall be
            submitted;
                7. For any action where funds earmarked by either
            of the Committees for a specific activity are proposed
            to be used for a different activity, a reprogramming
            shall be submitted; and,
                8. For any action where funds earmarked by either
            of the Committees for a specific activity are in excess
            of the project or activity requirement, and are
            proposed to be used for a different activity, a
            reprogramming shall be submitted.
          Additionally, each request shall include a declaration
    that, as of the date of the request, none of the funds included
    in the request have been obligated, and none will be obligated,
    until the Committees on Appropriations have approved the
    request.

                      TITLE I--DEPARTMENT OF THE TREASURY

                              Departmental Offices

                             SALARIES AND EXPENSES

          The conferees agree to provide $156,315,000 instead of
    $149,437,000 as proposed by the House and $149,610,000 as
    proposed by the Senate. Included in this amount is $7,332,000
    to maintain current levels; $3,813,000 as a transfer from the
    Department-Wide Systems and Capital Investments Programs
    (SCIP); $3,027,000 to annualize the costs of the fiscal year
    2000 drug supplemental for the Office of Foreign Asset Control
    (OFAC); $854,000 to annualize the costs of filling 6 positions
    with the Office of International Affairs during fiscal year
    2000; $2,899,000 for OFAC program initiatives; $504,000 and no
    more than 3 positions for increased management and coordination
    by the Office of Enforcement of the Department's involvement in
    the National Money Laundering Strategy; $2,900,000 for grants
    to state and local law enforcement groups to help combat money
    laundering; $502,000 for reimbursements to Morris County, New
    Jersey, for law enforcement agencies; $150,000 for
    reimbursements to Arlington County, Virginia, law enforcement
    agencies; and not to exceed $300,000 to reimburse the State
    Police, the police departments of the towns of New Castle,
    North Castle, Mount Kisco, Bedford, and the Department of
    Public Safety of Westchester County of the State of New York.

                    RECEPTION AND REPRESENTATION ALLOWANCES

          The conferees are concerned to learn that, over the past
    several years, the Office of the Under Secretary of Enforcement
    has required the various Treasury law enforcement bureaus to
    transfer a portion of their reception and representation funds
    to the Office of the Under Secretary. Although there may be
    certain functions appropriate to the involvement of all the
    Treasury law enforcement bureaus, the conferees remind the
    Under Secretary that expenses for these events are accommodated
    within the amounts authorized for Departmental Offices
    reception and representation allowances. In the event that the
    Under Secretary believes that Departmental Offices
    representation allowances are insufficient to meet current
    needs, the Under Secretary should submit a justification for
    increases to this allowance to the Committees for its
    consideration. The conferees also direct the Under Secretary to
    submit for advance approval any requirement to use reception
    and representation allowance funds from any appropriation
    account other than Departmental Offices, Salaries and Expenses.

                               ALTERNATIVE FUELS

          The conferees urge the Treasury Department to use
    ethanol, biodiesel, and other alternative fuels to the maximum
    extent practicable in meeting the Department's fuel needs.

            Department-Wide Systems and Capital Investments Programs

          The conferees agree to provide $47,287,000 instead of
    $41,787,000 as proposed by the House and $37,279,000 as
    proposed by the Senate. Included in this amount is $14,779,000
    for communications infrastructure (including radios and related
    equipment) associated with Departmental law enforcement
    responsibilities for the Salt Lake City Winter Olympics;
    $2,000,000 for Critical Infrastructure Protection; and
    $3,500,000 for Public Key Infrastructure.

                          Office of Inspector General

                             SALARIES AND EXPENSES

          The conferees agree to provide $32,899,000 as proposed by
    the Senate instead of $31,940,000 as proposed by the House.

               Treasury Inspector General for Tax Administration

                             SALARIES AND EXPENSES

          The conferees agree to provide $118,427,000 as proposed
    by Senate instead of $115,477,000 as proposed by the House.

               Treasury Building and Annex Repair and Restoration

          The conferees agree to provide $31,000,000 as proposed by
    the House instead of $22,700,000 as proposed by the Senate.

                     Expanded Access to Financial Services

          The conferees agree to provide $2,000,000 as proposed by
    the House instead of $400,000 as proposed by the Senate. The
    conferees agree to $300,000 to assist one or more locally-owned
    Alaska banking institutions and community partners and $100,000
    to begin a pilot program with the Metropolitan Family Services'
    Family Economic Development program.

                      Financial Crimes Enforcement Network

                             SALARIES AND EXPENSES

          The conferees agree to provide $37,576,000 as proposed by
    the Senate instead of $34,694,000 as proposed by the House.

                             Counterterrorism Fund

          The conferees agree to provide $55,000,000 for the
    Counterterrorism Fund as proposed by the Senate instead of no
    appropriation as proposed by the House. Funds are provided as a
    contingent emergency.

                            Treasury Forfeiture Fund

          The conferees are aware that the $42,500,000 assumed to
    be available by the Administration in the Super Surplus to the
    Treasury Forfeiture Fund will not be available in fiscal year
    2001. Activities proposed for funding through this account have
    been included in either Salaries and Expenses or Construction
    related accounts, as appropriate, for the individual law
    enforcement bureaus.

                    Federal Law Enforcement Training Center

                             SALARIES AND EXPENSES

          The conferees agree to provide $94,483,000 instead of
    $93,483,000 as proposed by the House and $93,198,000 as
    proposed by the Senate. Included in this amount is $1,000,000
    for the rural law enforcement education project.

         ACQUISITION, CONSTRUCTION, IMPROVEMENTS, AND RELATED EXPENSES

          The conferees agree to provide $29,205,000 as proposed by
    the Senate instead of $17,331,000 as proposed by the House.

                          Interagency Law Enforcement

                     INTERAGENCY CRIME AND DRUG ENFORCEMENT

          The conferees agree to provide $103,476,000 as proposed
    by the House instead of $90,976,000 as proposed by the Senate.

                          Financial Management Service

                             SALARIES AND EXPENSES

          The conferees agree to provide $206,851,000 instead of
    $198,736,000 as proposed by the House and $202,851,000 as
    proposed by the Senate. The conferees fully fund the
    President's request. In addition, the conferees include
    $4,000,000 to partially fund a budget shortfall. The conferees
    fully concur with the language on this topic contained under
    Departmental Offices in the Senate Report accompanying S. 2900.

                    Bureau of Alcohol, Tobacco and Firearms

                             SALARIES AND EXPENSES

          The conferees agree to provide $768,695,000 instead of
    $731,325,000 as proposed by the House and $724,937,000 as
    proposed by the Senate. The conferees fully fund the
    President's request with the exception of $5,521,000 for
    tobacco compliance initiatives and $4,148,000 for the proposed
    Joint Terrorism Task Forces.

                 GANG RESISTANCE EDUCATION AND TRAINING GRANTS

          The conferees agree to provide $13,000,000 for grants to
    local law enforcement organizations as proposed by the Senate.

                         United States Customs Service

                             SALARIES AND EXPENSES

          The conferees agree to provide $1,863,765,000 instead of
    $1,822,365,000 as proposed by the House and $1,804,687,000 as
    proposed by the Senate. Included in this amount is $13,700,000
    for the second year of funding of the fiscal year 2000
    Southwest Border initiative; $10,000,000 for security
    enhancements along the northern border; $11,000,000 for vehicle
    replacement; $3,700,000 for money laundering; $9,500,000 for
    drug investigations; and an additional $5,000,000 to combat
    forced child labor. Additionally, the conferees include
    $500,000 for Customs' ongoing research on trade of agricultural
    commodities and products at a Northern Plains university with
    an agricultural economics program and support the use of
    $2,500,000 for the acquisition of Passive Radar Detection
    Technology.

                  TARGETED RESOURCES FOR THE SOUTHWEST BORDER

          The conferees provide $13,700,000 to be combined with the
    $11,300,000 in fiscal year 2000 Super Surplus of the Treasury
    Forfeiture Fund to hire new inspectors, agents, or acquire new
    detection technology for use along the Southwest border for a
    total of $25,000,000. The House conferees do not concur with
    the Senate Report language on Targeted Resources for the
    Southwest Border.

                                 PORTS OF ENTRY

          The conferees have received numerous requests to
    establish, expand, or preserve Customs presence at various
    ports, as well as, to designate new ports of entry. Customs has
    made a commitment to put in place a staffing resource
    allocation model to permit a more transparent and consistent
    basis for making such decisions, but the delay in doing so has
    caused concern about the ability of Customs to fulfill its
    responsibilities. The conferees therefore direct the Treasury
    Department and Customs to complete this model and to report to
    the Committees on Appropriations not later than November 1,
    2000 on its implementation. In relation to this, the conferees
    urge the Customs Service to give full consideration to the
    needs of the following areas for increases or improvements in
    Customs services: Fargo, North Dakota; Highgate Springs,
    Vermont; Charleston, South Carolina; Charleston, West Virginia;
    Honolulu, Hawaii; Great Falls, Sweetgrass-Coutts, and Missoula,
    Montana; Tri-Cities Regional Airport, Tennessee; Dulles
    International Airport, Virginia; Louisville International
    Airport, Kentucky; Miami International Airport, Florida;
    Pittsburg, New Hampshire; San Antonio, Texas; and multiple port
    areas in Arizona, New Mexico, and Florida.

      OPERATION, MAINTENANCE AND PROCUREMENT, AIR AND MARINE INTERDICTION
                                    PROGRAMS

          The conferees agree to provide $133,228,000 instead of
    $125,778,000 as proposed by the House and $128,228,000 as
    proposed by the Senate. Included in this amount is $5,000,000
    for source zone deployment of P-3's; $2,174,000 to maintain
    current levels; $7,450,000 for flight safety and enhancements;
    and $9,916,000 for costs associated with the delivery of new P-
    3's.

                            AUTOMATION MODERNIZATION

          The conferees agree to provide $258,400,000 instead of
    $233,400,000 as proposed by the House and $128,400,000 as
    proposed by the Senate. Included in this amount is $5,400,000
    for the International Trade Data System, as well as not less
    than $130,000,000 to begin work on the Automated Commercial
    Environment (ACE).

                           Bureau of the Public Debt

                         ADMINISTERING THE PUBLIC DEBT

          The conferees agree to provide $182,901,000 as proposed
    by the House and Senate. The conferees agree to include a
    provision as proposed by the Senate with respect to
    administrative costs associated with certain trust funds.

                            Internal Revenue Service

                     PROCESSING, ASSISTANCE, AND MANAGEMENT

          The conferees agree to provide $3,567,001,000 instead of
    $3,487,232,000 as proposed by the House and $3,506,939,000 as
    proposed by the Senate. The conferees fully fund the
    President's request with respect to adjustments required to
    maintain current levels of service, organizational
    modernization, and operational contract support. The funding
    level also reflects an increase of $60,000,000 above the fiscal
    year 2000 level as a result of an inter-appropriation transfer
    during fiscal year 2000. The conferees have not provided any
    funding for the Staffing Tax Administration for Balance and
    Equity (STABLE) initiative, a proposed fiscal year 2001 inter-
    appropriation transfer, or the electronic tax administration
    marketing initiative.

                         IRS DATA FOR ECONOMIC MODELING

          The conferees are aware of the critical importance and
    usefulness of IRS data to economic modeling, such as the
    modeling used to project the economic impact of proposed Social
    Security legislation. The conferees direct IRS to continue
    working closely with the Bureau of the Census to ensure the
    appropriate availability of these data in a timely manner to
    groups such as the Congressional Budget Office (CBO) to
    facilitate the operation of CBO's long-term models of Social
    Security and Medicare. CBO requires records from the IRS'
    Statistics Of Income that are matched with survey data from the
    Bureau of the Census (involving the Current Population Survey
    and the Survey of Income and Program Participation) and records
    of the Social Security Administration with all record
    identifiers removed.

                              TAX LAW ENFORCEMENT

          The conferees agree to provide $3,382,402,000 instead of
    $3,332,676,000 as proposed by the House and $3,378,040,000 as
    proposed by the Senate. The conferees fully fund the
    President's request with respect to adjustments required to
    maintain current levels of service and operational contract
    support. The funding level also reflects a decrease of
    $100,000,000 below the fiscal year 2000 level as a result of an
    inter-appropriation transfer during fiscal year 2000 and a
    decrease of $666,000 for a transfer to the Treasury Inspector
    General for Tax Administration, as requested. The conferees
    have not provided any funding for the Staffing Tax
    Administration for Balance and Equity (STABLE) initiative or
    for the Counterterrorism Initiative, nor have they agreed to a
    proposed transfer of $41,000,000 out of the account as an
    inter-appropriation transfer during fiscal year 2001.

                              INFORMATION SYSTEMS

          The conferees agree to provide $1,545,090,000 instead of
    $1,488,090,000 as proposed by the House and $1,505,090,000 as
    proposed by the Senate. The conferees fully fund the
    President's request with the exception of the Staffing Tax
    Administration for Balance and Equity (STABLE) initiative and
    $3,000,000 for an inter-appropriation transfer proposed for
    fiscal year 2001.

              ADMINISTRATIVE PROVISIONS--INTERNAL REVENUE SERVICE

          Section 101. The conferees agree to continue a provision
    which allows the transfer of 5 percent of any appropriation
    made available to the IRS to any other IRS appropriation
    subject to Congressional approval.
          Section 102. The conferees agree to continue a provision
    which requires the IRS to maintain a training program in
    taxpayers' rights, dealing courteously with taxpayers, and
    cross cultural relations.
          Section 103. The conferees agree to continue a provision
    which requires the IRS to institute and enforce policies and
    practices that will safeguard the confidentially of taxpayer
    information.
          Section 104. The conferees agree to continue a provision
    proposed by the Senate with respect to the IRS 1-800 help line
    service.

                          UNITED STATES SECRET SERVICE

                             SALARIES AND EXPENSES

          The conferees agree to provide $823,800,000 as proposed
    by the House instead of $778,279,000 as proposed by the Senate.

          ACQUISITION, CONSTRUCTION, IMPROVEMENT, AND RELATED EXPENSES

          The conferees agree to provide $8,941,000 instead of
    $5,021,000 as proposed by the House and $4,283,000 as proposed
    by the Senate. Included in this amount is $3,920,000 for
    security enhancements at the Vice President's residence.

                 GENERAL PROVISIONS--DEPARTMENT OF THE TREASURY

          Section 110. The conferees agree to continue a provision
    which requires the Secretary of the Treasury to comply with
    certain reprogramming guidelines when obligating or expending
    funds for law enforcement activities.
          Section 111. The conferees agree to continue a provision
    which allows the Department of the Treasury to purchase
    uniforms, insurance, and motor vehicles without regard to the
    general purchase price limitation, and enter into contracts
    with the Department of State for health and medical services
    for Treasury employees in overseas locations.
          Section 112. The conferees agree to continue a provision
    which requires the expenditure of funds so as not to diminish
    efforts under section 105 of the Federal Alcohol Administration
    Act.
          Section 113. The conferees agree to continue a provision
    which authorizes transfers, up to 2 percent, between law
    enforcement appropriations under certain circumstances.
          Section 114. The conferees agree to continue a provision
    which authorizes the transfer, up to 2 percent, between the
    Departmental Offices, Office of Inspector General, Treasury
    Inspector General for Tax Administration, Financial Management
    Service, and Bureau of Public Debt appropriations under certain
    circumstances.
          Section 115. The conferees agree to include a new
    provision proposed by the House that authorizes transfer, up to
    2 percent, between the Internal Revenue Service and the
    Treasury Inspector General for Tax Administration under certain
    circumstances.
          Section 116. The conferees agree to continue a provision
    regarding the purchase of law enforcement vehicles.
          Section 117. The conferees agree to continue a provision
    proposed by the House which prohibits the Department of the
    Treasury and the Bureau of Engraving and Printing from
    redesigning the $1 Federal Reserve Note.
          Section 118. The conferees agree to continue and make
    permanent a provision which authorizes Treasury law enforcement
    agencies to pay their protection officers premium pay in excess
    of the pay period limitation.
          Section 119. The conferees agree to include a new
    provision that provides for transfer from and reimbursements to
    the Salaries and Expenses appropriation of the Financial
    Management Service for the purposes of debt collection.
          Section 120. The conferees agree to include a new
    provision that extends the Treasury Franchise Fund through
    October 1, 2002.
          Section 121. The conferees agree to include a new
    provision that requires that no reorganization of the US
    Customs Service shall result in a reduction of service to the
    area served by the Port of Racine, Wisconsin, below the level
    of service provided in fiscal year 2000.
          Section 122. The conferees agree to include a new
    provision proposed by the House authorizing and directing the
    Bureau of Alcohol, Tobacco and Firearms to reimburse the
    subcontractor that provided services in 1993 and 1994 pursuant
    to Bureau of Alcohol, Tobacco and Firearms contract number TATF
    93-3 out of fiscal year 2001 appropriations or prior year
    unobligated balances.

                            TITLE II--POSTAL SERVICE

                       Payment to the Postal Service Fund

          The conferees agree to provide $96,093,000 as proposed by
    the House instead of $67,093,000 as proposed by the Senate. Of
    this amount, $67,093,000 is provided as an advance
    appropriation for free and reduced rate mail and $29,000,000 is
    provided for reimbursement to the Postal Service for prior year
    losses.

    TITLE III--EXECUTIVE OFFICE OF THE PRESIDENT AND FUNDS APPROPRIATED TO
                                 THE PRESIDENT

            Compensation of the President and the White House Office

                             SALARIES AND EXPENSES

          The conferees agree to provide $53,288,000 as proposed by
    the Senate instead of $52,135,000 as proposed by the House and
    include a proviso that $9,072,000 of the funds appropriated
    shall be available for reimbursements to the White House
    Communications Agency, as proposed by the House.

                     Executive Residence at the White House

                               OPERATING EXPENSES

          The conferees agree to provide $10,900,000 as proposed by
    the Senate instead of $10,286,470 as proposed by the House.

                       WHITE HOUSE REPAIR AND RESTORATION

          The conferees agree to provide $968,000 instead of
    $5,510,000 as proposed by the Senate and $658,000 as proposed
    by the House. The conferees provide $458,000 for the design and
    replacement of the existing concrete raceway containing voice
    and communication lines serving the East Wing and the Executive
    Residence instead of the full request of $5,000,000. The
    conferees direct the Executive Residence to submit a completed
    design to the Committees on Appropriations, including an
    estimate of total construction costs associated with this
    project.

    Special Assistance to the President and Official Residence of the Vice
                                   President

                             SALARIES AND EXPENSES

          The conferees agree to provide $3,673,000 as proposed by
    the Senate instead of $3,664,000 as proposed by the House.

                          Council of Economic Advisors

                             SALARIES AND EXPENSES

          The conferees agree to provide $4,110,000 as proposed by
    the Senate instead of $3,997,000 as proposed by the House.

                          Office of Policy Development

                             SALARIES AND EXPENSES

          The conferees agree to provide $4,032,000 as proposed by
    the Senate instead of $4,030,000 as proposed by the House.

                           National Security Council

                             SALARIES AND EXPENSES

          The conferees agree to provide $7,165,000 as proposed by
    the Senate instead of $7,148,000 as proposed by the House.

                            Office of Administration

                             SALARIES AND EXPENSES

          The conferees agree to provide $43,737,000 as proposed by
    the Senate instead of $41,185,000 as proposed by the House. The
    conferees agree to delete language proposed by the House to
    delay the effective date of section 638(h) of Public Law 106-
    58, regarding the establishment of a Chief Financial Officer
    within the Executive Office of the President.

                        Office of Management and Budget

                             SALARIES AND EXPENSES

          The conferees agree to provide $68,786,000 instead of
    $67,143,000 as proposed by the House and $67,935,000 as
    proposed by the Senate. The conferees fully fund the
    President's request.

            APPORTIONMENT FOR INTERNATIONAL FOOD ASSISTANCE PROGRAMS

          The conferees do not concur with the House report
    language regarding apportionment for International Food
    Assistance Programs.

                     Office of National Drug Control Policy

                             SALARIES AND EXPENSES

          The conferees agree to provide $24,759,000 as proposed by
    the House instead of $24,312,000 as proposed by the Senate.

                    Counterdrug Technology Assessment Center

          The conferees agree to provide $29,053,000 instead of
    $29,750,000 as proposed by the House and $29,052,000 as
    proposed by the Senate.

                         Federal Drug Control Programs

                 HIGH INTENSITY DRUG TRAFFICKING AREAS PROGRAM

          The conferees agree to provide $206,500,000 instead of
    $217,000,000 as proposed by the House and $196,000,000 as
    proposed by the Senate. The conferees fully fund the
    Administration's request, and include an additional $14,500,000
    to increase funding or expand existing HIDTAs, or to fund newly
    designated HIDTAs. The conferees provide that existing HIDTAs
    shall be funded at fiscal year 2000 levels unless the ONDCP
    Director submits to the Committees, and the Committees approve,
    justification for changes in those levels based on clearly
    articulated priorities for the HIDTA program, as well as
    published ONDCP performance measures of effectiveness (PMEs).
    Similarly, while the conferees provide additional funding that
    may be used for newly designated HIDTAs, they direct that no
    funds may be obligated for such purposes until similar
    justification is provided to the Committees for approval.
          The ability to evaluate effectiveness of individual
    HIDTAs, and to match funding needs against budgets, depends on
    reliable and consistent methodology for performance measurement
    and management. This is particularly important given the key
    role HIDTAs play in bringing together many divergent
    counterdrug agencies and crosscutting programs--which also
    exacerbates the problem of isolating the impact of HIDTAs. The
    conferees anticipate that the completion of work by the HIDTA
    Performance Management Working Group will improve performance
    measurement methodology and data collection covering the three
    main target areas identified in 1999. These are: increasing
    compliance with HIDTA developmental standards; dismantling or
    disabling at least 5 percent of targeted drug trafficking
    organizations; and reducing specific types of violent crime.
    The conferees support ONDCP plans to validate and verify the
    HIDTA management, including the use of on-site reviews and
    external financial evaluations.
          As ONDCP reviews candidates for new HIDTA funding, the
    conferees direct it to consider the following: Las Vegas,
    Nevada; Arkansas; Minnesota; North Carolina; and Northern
    Florida, which have requested designation; increases for
    Central Florida, Southwest Border (for New Mexico, South Texas,
    West Texas, and Arizona), New England, Gulf Coast, Oregon,
    Northwest (including southwest and eastern Washington), and
    Chicago HIDTAs; and full minimum funding for new HIDTAs in
    Central Valley, California, Hawaii, and Ohio. The conferees
    urge ONDCP to consider using funds provided above the budget
    request for designating new HIDTAs from areas which have
    already submitted requests.

                            SPECIAL FORFEITURE FUND

          The conferees agree to provide $233,600,000 instead of
    $219,000,000 as proposed by the House and $144,300,000 as
    proposed by the Senate. Of this amount, the conferees provide
    $185,000,000 for the National Youth Anti-Drug Media Campaign;
    $40,000,000 to carry out the Drug Free Communities Act;
    $3,000,000 for the costs of space and operations of the counter
    drug intelligence executive secretariat (CDX); $3,300,000 for
    anti-doping efforts of the United States Olympic Committee;
    $1,300,000 to the Metro Intelligence Support and Technical
    Investigative Center (MISTIC); and $1,000,000 for the National
    Drug Court Institute.

                    NATIONAL YOUTH ANTI-DRUG MEDIA CAMPAIGN

          The conferees negate neither the House nor Senate
    Committee Report language regarding the youth media campaign.
    The conferees are concerned with ONDCP's use of pro bono
    credits under the match program for programming content, and
    note with interest the Statement of Pro-Bono Match Program and
    Guidelines that ONDCP posted on its website in July 2000.
    Consistent with those guidelines, the conferees direct that
    ONDCP not issue credits for ad time and/or space if already
    purchased with funds appropriated for the campaign.
    Furthermore, the conferees direct that ONDCP not issue any
    credits for programming content once a program is in
    syndication unless it has previously reported to the Committees
    on Appropriations reasons why such credit is necessary.
    Finally, the conferees underscore the language on page 11 of
    the guidelines that reads ``ONDCP exercises its authority to
    review public service match materials for credit and valuation
    through its primary advertising contractor. No ONDCP contractor
    may make suggestions or requests about, or otherwise attempt to
    influence or modify the creative product of any media
    organization or representative for the purpose of qualifying
    for pro bono match credit.'' In keeping with this the conferees
    direct ONDCP to ensure that neither it nor its contractor will
    review programming content under consideration for pro bono
    credit under the match program until such programming is in its
    final form.

           Title IV--Independent Agencies Federal Election Commission

                             SALARIES AND EXPENSES

          The conferees agree to provide $40,500,000 instead of
    $40,240,000 as proposed by the House and $39,755,000 as
    proposed by the Senate.

                        General Services Administration

                             FEDERAL BUILDINGS FUND

                     LIMITATIONS ON AVAILABILITY OF REVENUE

          The conferees agree to provide $5,971,509,000 in new
    obligational authority instead of $5,272,370,000 as proposed by
    the House and $5,502,333,000 as proposed by the Senate. The
    conferees directly appropriate $464,154,000 into the Fund to
    cover a portion of the new obligational needs of the Fund.

                             AFRICAN BURIAL GROUND

          The conferees recognize the efforts of GSA to memorialize
    the 17th and 18th century African Americans whose remains were
    discovered during the excavation for a new Federal building at
    Foley Square in lower Manhattan. Since 1992, significant work
    has been conducted on the memorialization but additional work
    is required prior to and including the reinterment of the
    remains. The conferees expect GSA to complete the project using
    funds made available from the Federal Buildings Fund or from
    the borrowing authority remaining for the buildings project at
    Foley Square.

                          CONSTRUCTION AND ACQUISITION

          The conferees agree to provide $472,176,000 instead of no
    funding as proposed by the House and $3,000,000 as proposed by
    the Senate. These funds are provided for nine projects. The
    conferees direct GSA to provide a written report to the
    Committees on Appropriations with respect to how GSA plans to
    allocate these funds among the various projects prior to
    allocating the funds. Within the funds provided the conferees
    have included $3,500,000 for the design and site acquisition of
    a combined law enforcement facility in Saint Petersburg,
    Florida.
          The conferees also agree to provide $276,400,000 as an
    advance appropriation, not available until October 1, 2001, for
    four courthouse construction projects.

                            REPAIRS AND ALTERATIONS

          The conferees agree to provide $671,193,000 as proposed
    by the Senate instead of $490,592,000 as proposed by the House.
    This level fully funds the request with the following
    exceptions: no funds are provided for the chlorofluorocarbon
    program, the energy program is funded at $5,000,000, and the
    glass fragment retention program is funded at $5,000,000.

                              BUILDING OPERATIONS

          The conferees agree to provide $1,624,771,000 as proposed
    by the Senate instead of $1,580,909,000 as proposed by the
    House. Within this limitation level, the conferees have
    included $500,000 to conduct a site selection analysis for a
    replacement facility for the National Center for Environmental
    Prediction of the National Oceanic and Atmospheric
    Administration, currently located in Camp Springs, Maryland.
    The delineated area shall be in the Washington, D.C.
    Metropolitan area and include the consideration of appropriate
    educational institutions qualified to be project partners. A
    report on the findings of the study shall be provided to the
    conferees within 120 days of the enactment of this Act.

                             POLICY AND OPERATIONS

          The conferees agree to provide $123,920,000 instead of
    $123,420,000 as proposed by the Senate and $115,434,000 as
    proposed by the House. Increases above the enacted level
    include $3,285,000 for pay costs to maintain current levels,
    $2,075,000 for protection and maintenance at the Lorton complex
    in Virginia, and $8,000,000 for the critical infrastructure
    protection initiative. The conferees agree to provide up to
    $500,000 for virtual archive storage and agree to provide
    $190,000, from within available funds, for the Plains States
    Depopulation Symposium as proposed by the Senate. The conferees
    do not agree to the reduction of funding from the fiscal year
    2000 level for the digital learning technology effort and
    direct that $1,000,000 be used to continue a digital medical
    education project in connection with the Native American
    Digital Telehealth Project and Upper Great Plains Native
    American Telehealth Program and that $1,000,000 be used to
    continue activities that will be the basis for the 21st Century
    Distributed Learning Environment in Education.

                               ALTERNATIVE FUELS

          The conferees urge the General Services Administration to
    use ethanol, biodiesel, and other alternative fuels to the
    maximum extent practicable in meeting GSA's fuel needs.

                       EXPENSES, PRESIDENTIAL TRANSITION

          The conferees agree to provide $7,100,000, as proposed by
    the Senate instead of no appropriation as proposed by the
    House.

              GENERAL SERVICES ADMINISTRATION--GENERAL PROVISIONS

          Section 401. The conferees agree to continue a provision
    that provides that accounts available to GSA shall be credited
    with certain funds received from government corporations.
          Section 402. The conferees agree to continue a provision
    that provides that funds available to GSA shall be available
    for the hire of passenger motor vehicles.
          Section 403. The conferees agree to continue a provision
    that authorizes GSA to transfer funds within the Federal
    Buildings Fund to meet program requirements subject to approval
    by the Committees on Appropriations.
          Section 404. The conferees agree to continue a provision
    that prohibits the use of funds to submit a fiscal year 2001
    budget request for courthouse construction projects that do not
    meet design guide criteria, do not reflect the priorities of
    the Judicial Conference of the United States, and are not
    accompanied by a standardized courtroom utilization study.
          Section 405. The conferees agree to continue a provision
    that provides that no funds may be used to increase the amount
    of occupiable square feet or provide cleaning services,
    security enhancements, or any other service usually provided to
    any agency which does not pay the requested rental rates.
          Section 406. The conferees agree to continue a provision
    that provides that funds provided by the Information Technology
    Fund for pilot information technology projects may be repaid to
    the Fund.
          Section 407. The conferees agree to continue a provision
    that permits GSA to pay claims of up to $250,000 arising from
    construction projects and the acquisition of buildings.
          Section 408. The conferees agree to include a provision
    as proposed by the House to provide a one-year extension to the
    period for which voluntary separation incentive payments may be
    offered by the Administrator of General Services to qualified
    employees.
          Section 409. The conferees agree to include a new
    provision proposed by the Senate designating the Federal
    Building and United States Courthouse located at 102 North 4th
    Street in Grand Forks, North Dakota, as the ``Ronald N. Davies
    Federal Building and United States Courthouse''.
          Section 410. The conferees agree to include a new
    provision proposed by the Senate regarding the Columbus, New
    Mexico border station.
          Section 411. The conferees agree to include a new
    provision proposed by the Senate designating the United States
    Bankruptcy Courthouse located at 1100 Laurel Street in
    Columbia, South Carolina, as the ``J. Bratton Davis United
    States Bankruptcy Courthouse''.
          Section 412. The conferees agree to include a new
    provision proposed by the Senate designating the United States
    Courthouse Annex located at 901 19th Street in Denver,
    Colorado, as the ``Alfred A. Arraj United States Courthouse
    Annex''.
          Section 413. The conferees agree to include a new
    provision proposed by the Senate designating the dormitory
    building currently being constructed on the Core Campus of the
    Federal Law Enforcement Training Center in Glynco, Georgia, as
    the ``Paul Coverdell Dormitory''.

                         Merit Systems Protection Board

                             salaries and expenses

          The conferees agree to provide $29,437,000 as proposed by
    the Senate instead of $28,857,000 as proposed by the House.

     Federal Payment to the Morris K. Udall Scholarship and Excellence in
                    National Environmental Policy Foundation

          The conferees agree to provide $2,000,000 as proposed by
    the House instead of $1,000,000 as proposed by the Senate.

                     Environmental Dispute Resolution Fund

          The conferees agree to provide $1,250,000 as proposed by
    the House instead of $500,000 as proposed by the Senate.

                  National Archives and Records Administration

                               operating expenses

          The conferees agree to provide $209,393,000 as proposed
    by the Senate instead of $195,119,000 as proposed by the House,
    of which up to $5,000,000 may be used for the implementation of
    the Nazi War Crimes Disclosure Act (5 U.S.C. 552 note; Public
    Law 105-246), including preservation and restoration of
    declassified records, public access and dissemination
    activities, and necessary support services for the Nazi War
    Criminal Records Interagency Working Group.

                            repairs and restoration

          The conferees agree to provide $95,150,000 instead of
    $5,650,000 as proposed by the House and $4,950,000 as proposed
    by the Senate. This level of funding provides $4,950,000 for
    the base repairs and restoration program, $88,000,000 for the
    major repair and restoration project at the main Archives
    building, $1,500,000 for the construction of a new Southeast
    Regional Archives facility, and $700,000 for the design of a
    10,000-square-foot extension to the Gerald R. Ford Museum.

            National Historical Publications and Records Commission

                                 grants program

          The conferees agree to provide $6,450,000 as proposed by
    the Senate instead of $6,000,000 as proposed by the House.

                         Office of Personnel Management

                             salaries and expenses

          The conferees agree to provide $94,095,000 as proposed by
    the Senate instead of $93,471,000 as proposed by the House.

                                 parental leave

          The conferees direct the Office of Personnel Management
    to conduct a study to develop alternative means for providing
    Federal employees with at least 6 weeks of paid parental leave
    in connection with the birth or adoption of a child, and submit
    a report containing its findings and recommendations to the
    Committees on Appropriations by September 30, 2001. The report
    should include projected utilization rates and views as to
    whether this benefit can be expected to curtail the rate at
    which Federal employees are being lost to the private sector,
    help the Federal government recruit and retain employees,
    reduce turnover and replacement costs, and contribute to
    parental involvement during a child's formative years.

                     limitation on administrative expenses

          The conferees agree to provide $101,986,000 as proposed
    by the House instead of $99,624,000 as proposed by the Senate.

                          Office of Inspector General

                             salaries and expenses

          The conferees agree to provide $1,360,000 as proposed by
    the House instead of $1,356,000 as proposed by the Senate.

                           Office of Special Counsel

                             salaries and expenses

          The conferees agree to provide $11,147,000 instead of
    $10,319,000 as proposed by the House and $10,733,000 as
    proposed by the Senate. The conferees fully fund the
    President's request.

                            United States Tax Court

                             salaries and expenses

          The conferees agree to provide $37,305,000 as proposed by
    the House instead of $35,474,000 as proposed by the Senate.

                          Title V--General Provisions

                                    This Act

          Section 501. The conferees agree to continue the
    provision limiting the expenditure of funds to the current year
    unless expressly provided in this Act.
          Section 502. The conferees agree to continue the
    provision limiting the expenditure of funds for consulting
    services under certain conditions.
          Section 503. The conferees agree to continue the
    provision prohibiting the use of funds to engage in activities
    that would prohibit the enforcement of section 307 of the 1930
    Tariff Act.
          Section 504. The conferees agree to continue the
    provision prohibiting the transfer of control over the Federal
    Law Enforcement Training Center out of the Department of the
    Treasury.
          Section 505. The conferees agree to continue the
    provision concerning employment rights of Federal employees who
    return to their civilian jobs after assignment with the Armed
    Forces.
          Section 506. The conferees agree to continue the
    provision that requires compliance with the Buy American Act.
          Section 507. The conferees agree to continue the
    provision concerning prohibition of contracts that use certain
    goods not made in America.
          Section 508. The conferees agree to continue the
    provision prohibiting contract eligibility where fraudulent
    intent has been proven in affixing ``Made in America'' labels.
          Section 509. The conferees agree to continue the
    provision prohibiting the expenditure of funds for abortions
    under the FEHBP, as proposed by the House.
          Section 510. The conferees agree to continue the
    provision that would authorize the expenditure of funds for
    abortions under the FEHBP if the life of the mother is in
    danger or the pregnancy is a result of an act of rape or
    incest, as proposed by the House.
          Section 511. The conferees agree to continue the
    provision providing that fifty percent of unobligated balances
    may remain available for certain purposes.
          Section 512. The conferees agree to continue the
    provision restricting the use of funds for the White House to
    request official background reports without the written consent
    of the individual who is the subject of the report.
          Section 513. The conferees agree to continue the
    provision that cost accounting standards under the Federal
    Procurement Policy Act shall not apply to the FEHBP.
          Section 514. The conferees agree to include a new
    provision that transfers a parcel of land from the Gerald R.
    Ford Library and Museum to the Gerald R. Ford Foundation as
    trustee, with reversionary interest as proposed by the House.
          Section 515. The conferees include a new provision
    requiring OMB to develop guidelines for ensuring and maximizing
    the quality, objectivity, utility, and integrity of information
    disseminated by Federal agencies as proposed by the House.
          Section 516. The conferees agree to include a new
    provision permitting OPM to utilize certain funds to resolve
    litigation and implement settlement agreements regarding the
    non-foreign area cost-of-living allowance program as proposed
    by the Senate.
          Section 517. The conferees include and modify a provision
    prohibiting the use of funds for the purpose of implementation,
    or in preparation for implementation, of the Kyoto Protocol as
    proposed by the House.
          Section 518. The conferees agree to include a new
    provision requiring OMB to report to Congress on the
    effectiveness of the Paperwork Reduction Act of 1975 as
    proposed by the Senate.

                          Title VI--General Provisions

                     Departments, Agencies and Corporations

          Section 601. The conferees agree to continue the
    provision authorizing agencies to pay costs of travel to the
    United States for the immediate families of Federal employees
    assigned to foreign duty in the event of a death or a life
    threatening illness of the employee.
          Section 602. The conferees agree to continue the
    provision requiring agencies to administer a policy designed to
    ensure that all of its workplaces are free from the illegal use
    of controlled substances.
          Section 603. The conferees agree to continue the
    provision regarding price limitations on vehicles to be
    purchased by the Federal Government.
          Section 604. The conferees agree to continue the
    provision allowing funds made available to agencies for travel
    to also be used for quarters allowances and cost-of-living
    allowances.
          Section 605. The conferees agree to continue the
    provision prohibiting the Government, with certain specified
    exceptions, from employing non-U.S. citizens whose posts of
    duty would be in the continental U.S.
          Section 606. The conferees agree to continue the
    provision ensuring that agencies will have authority to pay GSA
    bills for space renovation and other services.
          Section 607. The conferees agree to continue the
    provision allowing agencies to finance the costs of recycling
    and waste prevention programs with proceeds from the sale of
    materials recovered through such programs.
          Section 608. The conferees agree to continue the
    provision providing that funds may be used by certain groups to
    pay rent and other service costs in the District of Columbia.
          Section 609. The conferees agree to continue the
    provision providing that no funds may be used to pay any person
    filling a nominated position that has been rejected by the
    Senate.
          Section 610. The conferees agree to continue the
    provision precluding the financing of groups by more than one
    Federal agency absent prior and specific statutory approval.
          Section 611. The conferees agree to continue the
    provision authorizing the Postal Service to employ guards and
    give them the same special police powers as GSA guards as
    proposed by the Senate.
          Section 612. The conferees agree to continue the
    provision prohibiting the use of funds for enforcing
    regulations disapproved in accordance with the applicable law
    of the U.S.
          Section 613. The conferees agree to continue the
    provision limiting the pay increases of certain prevailing rate
    employees.
          Section 614. The conferees agree to continue the
    provision limiting the amount of funds that can be used for
    redecoration of offices under certain circumstances.
          Section 615. The conferees agree to continue the
    provision prohibiting the expenditure of funds for the
    acquisition of additional law enforcement training facilities.
          Section 616. The conferees agree to continue the
    provision to allow for interagency funding of national security
    and emergency telecommunications initiatives.
          Section 617. The conferees agree to continue the
    provision requiring agencies to certify that a Schedule C
    appointment was not created solely or primarily to detail the
    employee to the White House.
          Section 618. The conferees agree to continue the
    provision requiring agencies to administer a policy designed to
    ensure that all of its workplaces are free from discrimination
    and sexual harassment.
          Section 619. The conferees agree to continue the
    provision prohibiting the importation of any goods manufactured
    by forced or indentured child labor.
          Section 620. The conferees agree to continue the
    provision prohibiting the payment of the salary of any employee
    who prohibits, threatens or prevents another employee from
    communicating with Congress.
          Section 621. The conferees agree to continue the
    provision prohibiting Federal training not directly related to
    the performance of official duties.
          Section 622. The conferees agree to continue and modify
    the provision prohibiting the expenditure of funds for
    implementation of agreements in nondisclosure policies unless
    certain provisions are included.
          Section 623. The conferees agree to continue the
    provision prohibiting use of appropriated funds for publicity
    or propaganda designed to support or defeat legislation pending
    in Congress.
          Section 624. The conferees agree to continue and make
    permanent the provision directing OMB to provide an accounting
    statement and report on the cumulative costs and benefits of
    Federal regulatory programs.
          Section 625. The conferees agree to continue the
    provision prohibiting any Federal agency from disclosing an
    employee's home address to any labor organization, absent
    employee authorization or court order.
          Section 626. The conferees agree to continue and make
    permanent the provision authorizing the Secretary of the
    Treasury to establish scientific canine explosive detection
    standards.
          Section 627. The conferees agree to continue the
    provision prohibiting funds to be used to provide non-public
    information such as mailing or telephone lists to any person or
    organization outside the Government without the approval of the
    Committees on Appropriations.
          Section 628. The conferees agree to continue the
    provision prohibiting the use of funds for propaganda and
    publicity purposes not authorized by Congress.
          Section 629. The conferees agree to continue the
    provision directing agency employees to use official time in an
    honest effort to perform official duties.
          Section 630. The conferees agree to continue, and include
    technical modifications to the provision addressing
    contraceptive coverage in health plans participating in the
    FEHBP, making it identical to current law as enacted by Section
    625 of the Departments of Commerce, Justice and State, the
    Judiciary, and Related Agencies Appropriations Act of 2000 and
    deleting the names of two plans that no longer participate in
    the program.
          Section 631. The conferees agree to continue the
    provision authorizing the use of fiscal year 2001 funds to
    finance an appropriate share of the Joint Financial Management
    Improvement Program.
          Section 632. The conferees agree to continue and modify
    the provision authorizing agencies to transfer funds to the
    Policy and Operations account of GSA to finance an appropriate
    share of the Joint Financial Management Improvement Program.
          Section 633. The conferees agree to continue and modify
    the provision authorizing agencies to provide child care in
    Federal facilities.
          Section 634. The conferees agree to continue and modify
    the provision authorizing breast feeding at any location in a
    Federal building or on Federal property.
          Section 635. The conferees agree to include a new
    provision that permits interagency funding of the National
    Science and Technology Council as proposed by the House.
          Section 636. The conferees agree to include a new
    provision concerning retirement provisions relating to certain
    members of the police force of the Metropolitan Washington
    Airports Authority as proposed by the House.
          Section 637. The conferees agree to include a new
    provision authorizing the President's Pay Agent to use
    appropriate data from sources other than the Bureau of Labor
    Statistics in making new locality pay designations as proposed
    by the House.
          Section 638. The conferees agree to continue the
    provision requiring identification of the Federal agencies
    providing Federal funds and the amount provided for all
    proposals, solicitations, grant applications, forms,
    notifications, press releases, or other publications related to
    the distribution of funding to a State.
          Section 639. The conferees agree to include a new
    provision requiring the mandatory removal from employment of
    any law enforcement officer convicted of a felony as proposed
    by the Senate.
          Section 640. The conferees agree to include a new
    provision repealing Section 504 of the Department of
    Transportation and Related Agencies Appropriations Act, 2001
    (as enacted into law by P.L. 106-346).
          Section 641. The conferees agree to include a new
    provision making a modification to the calculation of
    disability pay for Federal firefighters as proposed by the
    House.
          Section 642. The conferees agree to include a new
    provision that includes a technical modification to the basis
    for using inactive duty military leave as proposed by the
    House.
          Section 643. The conferees agree to include a new
    provision that requires criminal background checks for
    employees at federally provided day care facilities of the
    executive branch as proposed by the House.
          Section 644. The conferees include a new provision
    modifying Section 501 of the Department of Transportation and
    Related Agencies Appropriations Act, 2001 (as enacted into law
    by P.L. 106-346) related to Federal Internet sites.
          Section 645. The conferees agree to include a new
    provision that makes pay rates for Administrative Appeals
    Judges comparable to Administrative Law Judges as proposed by
    the House.
          Section 646. The conferees agree to include a new
    provision that requires the Inspector General of each
    department or agency to submit to Congress a report that
    discloses any activity relating to the collection of data about
    individuals who access any Internet site of the department or
    agency.

                          MISCELLANEOUS APPROPRIATIONS

          The conference agreement would enact the provisions of
    H.R. 5666 as introduced on December 15, 2000. The text of that
    bill follows:

     A BILL Making miscellaneous appropriations for the fiscal year ending
                  September 30, 2001, and for other purposes.

          Be it enacted by the Senate and House of Representatives
    of the United States of America in Congress assembled, That the
    following sums are appropriated, out of any money in the
    Treasury not otherwise appropriated, for the fiscal year ending
    September 30, 2001, and for other purposes namely:

                                   DIVISION A

                                   CHAPTER 1

                        GENERAL PROVISIONS--THIS CHAPTER

        Sec. 101. The Agriculture, Rural Development, Food and Drug
    Administration, and Related Agencies Appropriations Act, 2001,
    is amended--
                (1) In title III, under the heading ``Rural
            Utilities Service, Rural Electrification and
            Telecommunications Loans Program Account'', after ``per
            year'' insert ``: Provided further, That not more than
            $100,000 shall be available for guarantees of private
            sector loans''.
                (2) In title III, at the end of the first proviso
            under the ``Rural Housing Assistance Grants'' account,
            insert ``in Mississippi and Alaska''.
                (3) In section 724, by striking ``to Hispanic-
            serving institutions'' and all that follows through
            ``maintained by such institutions'' and inserting ``to
            eligible grantees specified in subsection (d)(3) of
            that section'';
                (4) In title VIII, under the heading ``Rural
            Community Advancement Program'', by striking ``January
            1, 2001'' and inserting ``January 1, 2000'';
                (5) In section 806, by inserting ``: Provided
            further, That of the funds made available by this
            section, the Secretary shall transfer $5,000,000 to the
            State of Alabama to be used in conjunction with the
            program administered by the Alabama Department of
            Agriculture and Industries: Provided further, That of
            the funds made available by this section, the Secretary
            shall transfer not more than $300,000 to the State of
            Montana for transportation needs associated with
            emergency haying and feeding: Provided further, That of
            the funds made available by this section, the Secretary
            shall use not more than $2,000,000 to carry out a
            program for income losses sustained before April 30,
            2001, by individuals who raise poultry owned by other
            individuals as a result of Poult Enteritis Mortality
            Syndrome control programs, as determined by the
            Secretary'' after ``American Indian Livestock Feed
            Program'';
                (6) In section 815(d)(3), by inserting ``affected''
            after ``all'';
                (7) In section 830, by striking ``Section 401'' and
            inserting ``Title IV''.
                (8) In section 843, by striking ``were unable to
            market the crops'' and all that follows through ``in
            this section:'' and inserting ``suffered a loss because
            of the insolvency of an agriculture cooperative in the
            State of California: Provided, That the amount of a
            payment made to a producer under this section shall not
            exceed 50 percent of the loss referred to in this
            section:'';
                (9) In section 844--
                        (A) in the section heading, by inserting
                    ``, FLUE-CURED, AND CIGAR BINDER TYPE 54-55''
                    after ``BURLEY''; and
                        (B) in subsection (a)--
                                (i) in paragraph (1)--
                                        (I) by inserting ``,
                                    without further cost to the
                                    association,'' after
                                    ``settle''; and
                                        (II) by inserting ``, Flue-
                                    cured, or Cigar Binder Type 54-
                                    55'' after ``Burley'' each
                                    place it appears;
                                (ii) in paragraph (2)(B), by
                            inserting ``, Flue-cured, Cigar Binder
                            Type 54-55,'' after ``Burley''; and
                                (iii) in paragraph (3), by striking
                            subparagraph (A) and inserting the
                            following:
                        ``(A) counted for the purpose of
                    determining the Burley, Flue-cured, or Cigar
                    Binder Type 54-55 tobacco quota or allotment
                    for any year under part I of subtitle B of
                    title III of the Agricultural Adjustment Act of
                    1938 (7 U.S.C. 1311 et seq.); or'';
                (10) Notwithstanding any other provision of law,
            section 204(b)(10)(B) of Public Law 106-224 shall not
            be effective until July 1, 2001; and
                (11) The effective date of this section is the date
            of enactment of the Agriculture, Rural Development,
            Food and Drug Administration, and Related Agencies
            Appropriations Act, 2001.
        Sec. 102. The second sentence of section 520 of the Housing
    Act of 1949 (42 U.S.C. 1490) is amended by striking ``1990
    decennial census'' and inserting ``1990 or 2000 decennial
    census'', and by striking ``year 2000'' and inserting ``year
    2010''.
        Sec. 103. The Secretary of Agriculture, in collaboration
    with the Secretaries of Energy and Interior, shall undertake a
    study of the feasibility of including ethanol, biodiesel, and
    other bio-based fuels as part of the Strategic Petroleum
    Reserve. This study shall include a review of legislative and
    regulatory changes needed to allow this inclusion, and those
    elements necessary to design and implement such a program,
    including cost. The Secretary shall provide this study to the
    House and Senate Appropriations Committees by February 15,
    2001.
        Sec. 104. Notwithstanding section 730 of the Agriculture,
    Rural Development, Food and Drug Administration, and Related
    Agencies Appropriations Act, 2000 (Public Law 106-78), the City
    of Wilson, North Carolina, shall be eligible in fiscal year
    2001 for the community facility loan guarantee program under
    section 306(a)(1) of the Consolidated Farm and Rural
    Development Act.
        Sec. 105. Title VIII of the Agriculture, Rural Development,
    Food and Drug Administration, and Related Agencies
    Appropriations Act, 2001, is amended by inserting at the end
    the following new section:
        ``Sec. 778. Notwithstanding section 723 of this Act or any
    other provision of law, there are hereby appropriated
    $26,000,000, to remain available until expended, for the
    program authorized under section 334 of the Federal Agriculture
    Improvement and Reform Act of 1996: Provided, That the entire
    amount shall be available only to the extent an official budget
    request for $26,000,000, that includes designation of the
    entire amount of the request as an emergency requirement as
    defined in the Balanced Budget and Emergency Deficit Control
    Act of 1985, as amended, is transmitted by the President to the
    Congress: Provided further, That the entire amount is
    designated by the Congress as an emergency requirement pursuant
    to section 251(b)(2)(A) of such Act.''.
        Sec. 106. In carrying out the bovine tuberculosis
    eradication program covered by the Secretary of Agriculture's
    emergency declaration effective as of October 11, 2000, the
    Secretary of Agriculture shall pay 100 percent of the amounts
    of approved claims for materials affected by or exposed to
    bovine tuberculosis, and of approved claims growing out of the
    destruction of animals: Provided, That in calculating the net
    present value of the future income portion of any claim, the
    Secretary shall use a discount rate of 7 percent: Provided
    further, That the entire amount necessary to carry out this
    section shall be available only to the extent that an official
    budget request for the entire amount, that includes designation
    of the entire amount of the request as an emergency requirement
    as defined in the Balanced Budget and Emergency Deficit Control
    Act of 1985, as amended, is transmitted by the President to the
    Congress: Provided further, That the entire amount is
    designated by the Congress as an emergency requirement pursuant
    to section 251(b)(2)(A) of such Act.
        Sec. 107. Section 820(b) of the Agriculture, Rural
    Development, Food and Drug Administration, and Related Agencies
    Appropriations Act, 2001, is amended by striking ``of 1996''
    and inserting the following: ``of 1996, and for the Farmland
    Protection Program established under section 388 of the Federal
    Agriculture Improvement and Reform Act of 1996''.
        Sec. 108. For an additional amount for the United States
    Department of Agriculture, Office of the General Counsel,
    $500,000: Provided, That the entire amount shall be available
    only to the extent an official budget request for $500,000,
    that includes designation of the entire amount of the request
    as an emergency requirement as defined in the Balanced Budget
    and Emergency Deficit Control Act of 1985, as amended, is
    transmitted by the President to the Congress: Provided further,
    That the entire amount is designated by the Congress as an
    emergency requirement pursuant to section 251(b)(2)(A) of such
    Act.
        Sec. 109. For an additional amount for Grain Inspection,
    Packers and Stockyards Administration, Salaries and Expenses,
    $200,000: Provided, That the entire amount shall be available
    only to the extent an official budget request for $200,000,
    that includes designation of the entire amount of the request
    as an emergency requirement as defined in the Balanced Budget
    and Emergency Deficit Control Act of 1985, as amended, is
    transmitted by the President to the Congress: Provided further,
    That the entire amount is designated by the Congress as an
    emergency requirement pursuant to section 251(b)(2)(A) of such
    Act.
        Sec. 110. Notwithstanding any other provision of law, the
    Natural Resources Conservation Service may provide financial
    and technical assistance to the Hamakua Ditch project in Hawaii
    from funds available for the Emergency Watershed Program, not
    to exceed $3,000,000.

                                   CHAPTER 2

                             DEPARTMENT OF JUSTICE

                             Federal Prison System

                             salaries and expenses

        For an additional amount for ``Salaries and Expenses'',
    $500,000, to remain available until expended: Provided, That
    these funds are to be expended by the National Institute of
    Corrections (NIC) for a comprehensive assessment of medical
    care and incidents of inmate mortality in the Wisconsin State
    Prison System.

                           Office of Justice Programs

                               justice assistance

        For an additional amount for ``Justice Assistance'',
    $300,000, to remain available until expended: Provided, That
    these funds are to be expended to expand the collection of data
    on prisoner deaths while in law enforcement custody.

                      community oriented policing services

        For an additional amount for ``Community Oriented Policing
    Services'', $3,080,000, to remain available until expended, of
    which $1,880,000 shall be for a grant to the Pasadena,
    California, Police Department for equipment; of which $200,000
    shall be for a grant to the City of Signal Hill, California,
    for equipment and technology for an emergency operations
    center; and of which $1,000,000 shall be for a grant to the
    State of Alabama Department of Forensic Sciences for equipment.

                           juvenile justice programs

        For an additional amount for ``Juvenile Justice Programs'',
    $1,000,000, to remain available until expended, for a grant to
    Mobile County, Alabama, for a juvenile court network program.

                               General Provisions

          Sec. 201. Chapter 2 of title II of division B of Public
    Law 106-246 (114 Stat. 542) is amended in the matter
    immediately under the first heading--
          (1) by inserting, ``(or the state, in the case of New
    Mexico)'' before ``only''; and
          (2) by inserting, ``detention costs,'' after ``court
    costs,''.
          Sec. 202. For an additional amount under the heading
    ``United States Attorneys, Salaries and Expenses'' in the
    Departments of Commerce, Justice, and State, the Judiciary, and
    Related Agencies Appropriations Act, 2001, $10,000,000 for the
    State of Texas and $2,000,000 for the State of Arizona, to
    reimburse county and municipal governments only for Federal
    costs associated with the handling and processing of illegal
    immigration and drug and alien smuggling cases, such
    reimbursements being limited to court costs, detention costs,
    courtroom technology, the building of holding spaces,
    administrative staff, and indigent defense costs.
          Sec. 203. In addition to amounts appropriated under the
    heading ``State and Local Law Enforcement Assistance, Office of
    Justice Programs'' in the Departments of Commerce, Justice, and
    State, the Judiciary, and Related Agencies Appropriations Act,
    2001, $9,000,000 is for an award to the Alliance of Boys &
    Girls of South Carolina for the establishment of the Strom
    Thurmond Boys & Girls Club National Training Center.
          Sec. 204. In addition to any amounts made available for
    ``State and Local Law Enforcement Assistance'' within the
    Department of Justice, $500,000 shall be made available only
    for the New Hampshire Department of Safety to investigate and
    support the prosecution of violations of federal trucking laws.
          Sec. 205. In addition to other amounts made available for
    the COPS technology program of the Department of Justice,
    $4,000,000 shall be available to the State of South Dakota to
    establish a regional radio system to facilitate communications
    between Federal, State, and local law enforcement agencies,
    firefighting agencies, and other emergency services agencies.

                             DEPARTMENT OF COMMERCE

                       Economic and Statistical Analysis

                             salaries and expenses

          For an additional amount for ``Salaries and Expenses'',
    $200,000, to remain available until expended, for the
    establishment of satellite accounts for the travel and tourism
    industry.

                National Oceanic and Atmospheric Administration

                      operations, research, and facilities

          For an additional amount for ``Operations, Research, and
    Facilities'', $750,000, to remain available until expended, for
    a study by the National Academy of Sciences pursuant to H.R.
    2090, as passed by the House of Representatives on September
    12, 2000.

                               General Provisions

        Sec. 206. The Departments of Commerce, Justice, and State,
    the Judiciary, and Related Agencies Appropriations Act, 2001,
    as enacted by section 1(a)(2) of the Act entitled ``An Act
    making appropriations for the government of the District of
    Columbia and other activities chargeable in whole or in part
    against revenues of said District for the fiscal year ending
    September 30, 2001, and for other purposes'' is amended by
    inserting before the period at the end of the paragraph under
    the heading ``National Oceanic and Atmospheric Administration,
    Operations, Research, and Facilities'' the following new
    proviso: ``: Provided further, That, of the amounts made
    available for the National Marine Fisheries Service under this
    heading, $10,000,000 shall be available only for research
    regarding litigation concerning the Alaska Steller sea lion and
    Bering Sea/Aleutian Islands and Gulf of Alaska groundfish
    fisheries, of which $6,000,000 shall be available only for the
    Office of Oceanic and Atmospheric Research to study the impact
    of ocean climate shifts on the North Pacific and Bering Sea
    fish and marine mammal species composition, of which $2,000,000
    shall be available only for the National Ocean Service to study
    predator/prey relationships as they relate to the decline of
    the western population of Steller sea lions, and of which
    $2,000,000 shall be available only for the North Pacific
    Fishery Management Council for an independent analysis of
    Steller sea lion science and other work related to such
    litigation''.
        Sec. 207. (a) In addition to amounts appropriated or
    otherwise made available under the heading ``Operations,
    Research, and Facilities, National Oceanic and Atmospheric
    Administration'' in the Departments of Commerce, Justice, and
    State, the Judiciary, and Related Agencies Appropriations Act,
    2001, $7,500,000 is appropriated for disaster assistance for
    communities affected by the 2000 western Alaska salmon disaster
    for which the Secretary of Commerce declared a fishery failure
    under section 312(a) of the Magnuson Stevens Fisheries
    Conservation and Management Act.
        (b) Funds appropriated by this section shall be made
    available as direct lump sum payments no later than 30 days
    after the date of enactment of this Act, as follows: $3,500,000
    to the Tanana Chiefs Conference, $3,500,000 to the Association
    of Village Council Presidents, and $500,000 to Kawerak.
        (c) Such funds shall be used to provide personal assistance
    with priority given to (1) food, (2) energy needs, (3) housing
    assistance, (4) transportation fuel including for subsistence
    activities, and (5) other urgent community needs.
        (d) Not more than 5 percent of such funds may be used for
    administrative expenses.
        (e) The President of the Tanana Chiefs Conference, the
    President of the Association of Village Council Presidents, and
    the President of Kawerak shall disburse all funds no later than
    May 1, 2000 and shall submit a report to the Secretary of
    Commerce detailing the expenditure of funds, including the
    number of persons and households served and the amount of
    administrative costs, by the end of the fiscal year.
        Sec. 208. In addition to amounts appropriated or otherwise
    made available by this or any other Act, $3,000,000 is
    appropriated to enable the Secretary of Commerce to provide
    economic assistance to fishermen and fishing communities
    affected by federal closures and fishing restrictions in the
    Hawaii long line fishery, to remain available until expended.
        Sec. 209. Implementation of Steller Sea Lion Protective
    Measures.--
          (a) Findings.--The Congress finds that--
                (1) the western population of Steller sea lions has
            substantially declined over the last twenty-five years.
                (2) scientists should closely research and analyze
            all possible factors relating to such decline,
            including the possible interactions between commercial
            fishing and Steller sea lions and the localized
            depletion hypothesis;
                (3) the authority to manage commercial fishing in
            federal waters lies with the regional councils and the
            Secretary of Commerce (hereafter in this section
            ``Secretary'') pursuant to the Magnuson-Stevens Fishery
            Conservation and Management Act (hereafter in this
            section ``Magnuson-Stevens Act''); and
                (4) the Secretary of Commerce shall comply with the
            Magnuson-Stevens Act when using fishery management
            plans and regulations to implement the decisions made
            pursuant to findings under the Endangered Species Act,
            and shall utilize the processes and procedures of the
            regional fishery management councils as required by the
            Magnuson-Stevens Act.
          (b) Independent Scientific Review.--The North Pacific
    Fishery Management Council (hereafter in this section ``North
    Pacific Council'') shall utilize the expertise of the National
    Academy of Sciences to conduct an independent scientific review
    of the November 30, 2000 Biological Opinion for the Bering Sea/
    Aleutian Islands and Gulf of Alaska groundfish fisheries
    (hereafter in this section ``Biological Opinion''), its
    underlying hypothesis, and the Reasonable and Prudent
    Alternatives (hereafter in this section ``Alternatives'')
    contained therein. The Secretary shall cooperate with the
    independent scientific review, and the National Academy of
    Sciences is requested to give its highest priority to this
    review.
          (c) Preparation of Fishery Management Plans and
    Regulations To Implement Protective Measures in the November
    30, 2000 Biological Opinion.--
                (1) The Secretary of Commerce shall submit to the
            North Pacific Council proposed conservation and
            management measures to implement the Alternatives
            contained in the November 30, 2000 Biological Opinion
            for the Bering Sea/Aleutian Islands and Gulf of Alaska
            groundfish fisheries. The North Pacific Council shall
            prepare and transmit to the Secretary a fishery
            management plan amendment or amendments to implement
            such Alternatives that are consistent with the
            Magnuson-Stevens Act (including requirements in such
            Act relating to best available science, bycatch
            reduction, impacting on fishing communities, the safety
            of life at sea, and public comment and hearings.)
                (2) The Bering Sea/Aleutian Islands and Gulf of
            Alaska groundfish fisheries shall be managed in a
            manner consistent with the Alternatives contained in
            the Biological Opinion, except as otherwise provided in
            this section. The Alternatives shall become fully
            effective no later than January 1, 2002, as revised if
            necessary and appropriate based on the independent
            scientific review referred to in subsection (b) and
            other new information, and shall be phased in in 2001
            as described in paragraph (3).
                (3) The 2001 Bering Sea/Aleutian Islands and Gulf
            of Alaska groundfish fisheries shall be managed in
            accordance with the fishery management plan and federal
            regulations in effect for such fisheries prior to July
            15, 2000, including--
                        (A) conservative total allowable catch
                    levels;
                        (B) no entry zones within three miles of
                    rookeries;
                        (C) restricted harvest levels near
                    rookeries and haul-outs;
                        (D) federally-trained observers;
                        (E) spatial and temporal harvest
                    restrictions;
                        (F) federally-mandated bycatch reduction
                    programs; and
                        (G) additional conservation benefits
                    provided through cooperative fishing
                    arrangements,
            and said regulations are hereby restored to full force
            and effect.
                (4) The Secretary shall amend these regulations by
            January 20, 2001, after consultation with the North
            Pacific Council and in a manner consistent with all
            law, including the Magnuson-Stevens Act, and consistent
            with the Alternatives to the maximum extent
            practicable, subject to the other provisions of this
            subsection.
                (5) The harvest reduction requirement (``Global
            Control Rule'') shall take effect immediately in any
            2001 groundfish fishery in which it applies, but shall
            not cause a reduction in the total allowable catch of
            any fishery of more than ten percent.
                (6) In enforcing regulations for the 2001
            fisheries, the Secretary, upon recommendation of the
            North Pacific Council, may open critical habitat where
            needed, adjust seasonal catch levels, and take other
            measures as needed to ensure that harvest levels are
            sufficient to provide income from these fisheries for
            small boats and Alaskan on-shore processors that is no
            less than in 1999.
                (7) The regulations that are promulgated pursuant
            to paragraph (4) shall not be modified in any way other
            than upon recommendation of the North Pacific Council,
            before March 15, 2001.
          (d) Sea Lion Protection Measures.--$20,000,000 is hereby
    appropriated to the Secretary of Commerce to remain available
    until expended to develop and implement a coordinated,
    comprehensive research and recovery program for the Steller sea
    lion, which shall be designed to study--
                (1) available prey species;
                (2) predator/prey relationships;
                (3) predation by other marine mammals;
                (4) interactions between fisheries and Steller sea
            lions, including the localized depletion theory;
                (5) regime shift, climate change, and other impacts
            associated with changing environmental conditions in
            the North Pacific and Bering Sea;
                (6) disease;
                (7) juvenile and pup survival rates;
                (8) population counts;
                (9) nutritional stress;
                (10) foreign commercial harvest of sealions outside
            the exclusive economic zone;
                (11) the residual impacts of former government-
            authorized Steller sea lion eradication bounty
            programs; and
                (12) the residual impacts of intentional lethal
            takes of Steller sea lions. Within available funds the
            Secretary shall implement on a pilot basis innovative
            non-lethal measures to protect Steller sea lions from
            marine mammal predators including killer whales,
          (e) Economic Disaster Relief.--$30,000,000 is hereby
    appropriated to the Secretary of Commerce to make available as
    a direct payment to the Southwest Alaska Municipal Conference
    to distribute to fishing communities, businesses, community
    development quota groups, individuals, and other entities to
    mitigate the economic losses caused by Steller sea lion
    protection measures heretofore incurred; provided that the
    President of such organization shall provide a written report
    to the Secretary and the House and Senate Appropriations
    Committee within six months of receipt of these funds.

                     DEPARTMENT OF STATE AND RELATED AGENCY

                               General Provisions

        Sec. 210. In addition to any amounts made available for
    ``Educational and Cultural Exchange Programs within the
    Department of State'', $500,000 shall be made available only
    for the Irish Institute.
        Sec. 211. In addition to amounts appropriated under the
    heading ``International Broadcasting Operations, Broadcasting
    Board of Governors'' in the Departments of Commerce, Justice,
    and State, the Judiciary, and Related Agencies Appropriations
    Act, 2001, $10,000,000 to remain available until expended, for
    increased broadcasting to Russia and surrounding areas, and to
    China, by Radio Free Europe/Radio Liberty, Radio Free Asia, and
    the Voice of America: Provided, That any amount of such funds
    may be transferred to the ``Broadcasting Capital Improvements''
    account to carry out such purposes.

                                RELATED AGENCIES

                     Commission on Online Child Protection

        For necessary expenses of the Commission on Online Child
    Protection, $750,000, to remain available until expended.

                         Small Business Administration

                             salaries and expenses

        For an additional amount for ``Salaries and Expenses'',
    $1,000,000 shall be available for a grant to the Electronic
    Commerce Resource Center in Scranton, Pennsylvania, to
    establish an electronic commerce technology distribution
    center.

                               General Provision

        Sec. 212. For an additional amount for ``Small Business
    Administration, Salaries and Expenses'' $1,000,000 shall be
    made available only for a grant to the National Museum of Jazz
    in New York, New York.

                        GENERAL PROVISION--THIS CHAPTER

        Sec. 213. (a) The provisions of H.R. 5548 (as enacted into
    law by H.R. 4942 of the 106th Congress) are amended as follows:
                (1) In title I, under the heading ``Salaries and
            Expenses, United States Marshals Service'', by striking
            ``3,947'' and inserting ``4,034''.
                (2) In title I, by redesignating sections 114
            through 119 as sections 113 through 118, respectively.
                (3) In title II, under the heading ``National
            Oceanic and Atmospheric Administration--Operations,
            Research, and Facilities'', by striking ``$31,439,000''
            and inserting ``$32,054,000''.
                (4) In title II, under the heading ``National
            Oceanic and Atmospheric Administration--Coastal and
            Ocean Activities''--
                        (A) by striking ``non-contiguous States
                    except Hawaii'' and inserting ``Alaska'';
                        (B) by striking ``Inc,'' and inserting
                    ``Inc.,'';
                        (C) by striking ``scrup;'' and inserting
                    ``scrub;''; and
                        (D) by striking ``watershed for lower Rouge
                    River restoration:'' and inserting
                    ``watershed:''.
                (5) In title IV, by striking section 406 and by
            redesignating sections 407 and 408 as sections 406 and
            407, respectively.
                (6) In title VI, by striking sections 635 and 636.
                (7) In title IX, in the first proviso of section
            901, by striking ``, territory or an Indian Tribe'' and
            inserting ``or territory''.
        (b) The amendments made by this section shall take effect
    as if included in H.R. 4942 of the 106th Congress on the date
    of its enactment.

                                   CHAPTER 3

                             DEPARTMENT OF DEFENSE

                        General Provisions--This Chapter

        Sec. 301. In the event that award of the full funding
    contract for low-rate initial production of the F-22 aircraft
    is delayed beyond December 31, 2000 because of inability to
    complete the requirements specified in section 8124 of the
    Department of Defense Appropriations Act, 2001 (Public Law 106-
    259), the Secretary of the Air Force may obligate up to
    $353,000,000 of the funds appropriated in Title III of Public
    Law 106-259 to continue F-22 Lot 1 (10 aircraft) advance
    procurement to protect the supplier base and preserve program
    costs and schedule.
        Sec. 302. (a) Consistent with Executive Order Number 1733,
    dated March 3, 1913, and notwithstanding section 303 of the
    Alaska National Interest Lands Conservation Act, Public Law 96-
    487, or any other law, the Department of the Air Force shall
    have primary jurisdiction, custody, and control over Shemya
    Island and its appurtenant waters (including submerged lands).
    In exercising such primary jurisdiction, custody, and control,
    the Secretary of the Air Force may utilize and apply such
    authorities as are generally applicable to a military
    installation, base, camp, post, or station. Shemya Island and
    its appurtenant waters (including submerged lands) shall
    continue to be included within the Alaska Maritime National
    Wildlife Refuge and the National Wildlife Refuge System and the
    Secretary of the Interior shall have jurisdiction secondary to
    that of the Department of the Air Force. Nothing in this
    section shall prohibit the transfer of jurisdiction, custody,
    and control over Shemya Island by the Department of the Air
    Force to another military department. In the event the military
    department exercising such primary jurisdiction, custody, and
    control no longer has a need to exercise such primary
    jurisdiction, custody, and control of Shemya Island and its
    appurtenant waters (including submerged lands), such
    jurisdiction, custody, and control shall terminate and the
    Secretary of the Interior shall then exercise sole
    jurisdiction, custody, and control over Shemya Island and its
    appurtenant waters (including submerged lands) as part of the
    Alaska Maritime National Wildlife Refuge.
        (b) Any environmental contamination of Shemya Island caused
    by a military department shall be the responsibility of that
    military department and not the responsibility of the
    Department of the Interior. Any money rentals received by a
    military department from outgrants on Shemya Island will be
    applied to the environmental restoration of the island in
    accordance with 10 U.S.C. 2667.
        (c) This section shall not be construed as altering any
    existing property rights of the State of Alaska or any private
    person.
        (d) The military department exercising primary
    jurisdiction, custody, and control over Shemya Island shall,
    consistent with the accomplishment of the military mission and
    subject to section 21 of the Internal Security Act of 1950,
    Public Law 81-831 (50 U.S.C. 797) (also known as the Subversive
    Activities Control Act of 1950)--
                (1) work with the United States Fish and Wildlife
            Service to protect and conserve the wildlife and
            habitat on the island; and
                (2) grant access to Shemya Island and its
            appurtenant waters to the United States Fish and
            Wildlife Service for the purpose of management of the
            Alaska Maritime National Wildlife Refuge.
        Sec. 303. Within the funds appropriated for the Patriot
    PAC-3 program under Title III of the Department of Defense
    Appropriations Act, 2001 (Public Law 106-259), the Ballistic
    Missile Defense Organization shall procure no less than 40 PAC-
    3 missiles.
        Sec. 304. Section 8133 of Public Law 106-259 (114 Stat.
    703) is amended by striking ``$300,000,000'' in the first
    proviso and inserting ``$550,000,000''.

                              (transfer of funds)

        Sec. 305. Of the total amount appropriated by title II of
    the Department of Defense Appropriations Act, 2001 (Public Law
    106-259) for operation and maintenance for the armed force or
    armed forces under the jurisdiction of the Secretary of a
    military department, the Secretary of that military department
    may transfer up to $2,000,000 to the central fund established
    by the Secretary under section 2493(d) of title 10, United
    States Code, for funding Fisher Houses and Fisher Suites.
    Amounts so transferred shall be merged with other amounts in
    the central fund to which transferred and shall be available
    without fiscal year limitation for the purposes for which
    amounts in that fund are available.
        Sec. 306. Funding for Certain Costs of Vessel Transfers.
    There is hereby appropriated into the Defense Vessels Transfer
    Program Account such sums as may be necessary for the costs (as
    defined in section 502 of the Congressional Budget Act of 1974
    (2 U.S.C. 661a)) of the lease-sale transfers authorized by the
    National Defense Authorization Act, 2001. Funds in that account
    are available only for the purpose of covering those costs.
        Sec. 307. Of the total amount appropriated by title IV of
    the Department of Defense Appropriations Act, 2001 (Public Law
    106-259) under the heading ``Research, Development, Test and
    Evaluation, Defense-Wide'', not less than $5,000,000 shall be
    made available only for support of a Gulf War illness research
    program at the University of Texas Southwestern Medical Center.

                         (including transfer of funds)

        Sec. 308. In addition to amounts appropriated for the
    Department of Defense in the Department of Defense
    Appropriations Act, 2001 (Public Law 106-259), $150,000,000 is
    hereby appropriated for ``Operation and Maintenance, Navy'' and
    shall remain available until expended, only for costs
    associated with the repair of the U.S.S. COLE: Provided, That
    the Secretary of Defense may transfer these funds to
    appropriations accounts for procurement: Provided further, That
    the funds transferred shall be merged with and shall be
    available for the same purposes and for the same time period,
    as the appropriation to which transferred: Provided further,
    That the transfer authority provided in this section is in
    addition to any other transfer authority available to the
    Department of Defense: Provided further, That the welfare of
    the crew, and of the families of the crew, of the U.S.S. COLE
    shall be considered in the Navy's selection of the process and
    location for the repair of the U.S.S. COLE: Provided further,
    That the entire amount made available in this section is
    designated by the Congress as an emergency requirement pursuant
    to section 251(b)(2)(A) of the Balanced Budget and Emergency
    Deficit Control Act of 1985, as amended.
        Sec. 309. Notwithstanding any other provision of law, the
    Administrator of the General Services Administration may
    utilize funds available to the National Science and Technology
    Council (authorized by Executive Order No. 12881), or any
    successor entity to the council, under section 635 of the
    Treasury and General Government Appropriations Act, 2001 for
    payment of any expenses of, and shall ensure that
    administrative services, facilities, staff and other support
    are provided for, the Commission on the Future of the United
    States Aerospace Industry pursuant to section 1092(e)(1) of the
    Floyd D. Spence National Defense Authorization Act for Fiscal
    Year 2001 (as enacted by section 1 of the Act to authorize
    appropriations for fiscal year 2001 for military activities of
    the Department of Defense, for military construction, and for
    defense activities of the Department of Energy, to prescribe
    personnel strengths for such fiscal year for the Armed Forces,
    and for other purposes).
        Sec. 310. In addition to funds provided elsewhere in this
    Act, or in the Department of Defense Appropriations Act, 2001
    (Public Law 106-259), $2,000,000 is hereby appropriated to
    ``Operation and Maintenance, Marine Corps'', only for planning
    and National Environmental Protection Act documentation for the
    proposed airfield and heliport at the Marine Corps Air Ground
    Task Force Training Command.

                              (transfer of funds)

        Sec. 311. Of the funds made available in the Department of
    Defense Appropriations Act, 2001 (Public Law 106-259), the
    Secretary of the Air Force shall transfer $5,000,000 of the
    funds provided for ``Operation and Maintenance, Air Force'' to
    the Secretary of the Interior for maintenance, protection, or
    preservation of the land and interests in land described in
    section 3 of the Minuteman Missile National Historic Site
    Establishment Act of 1999 (Public Law 106-115; 113 Stat. 1540):
    Provided, That the transfer authority provided in this section
    is in addition to any other transfer authority available to the
    Department of Defense for fiscal year 2001.
        Sec. 312. (a) The Secretary of the Air Force is authorized
    to convey to the Roosevelt General Hospital, Portales, New
    Mexico, without consideration, and without regard to title II
    of the Federal Property and Administrative Services Act of
    1949, all right, title, and interest of the United States in
    any personal property of the Air Force that the Secretary
    determines--
                (1) is appropriate for use by the Roosevelt General
            Hospital in the operation of that hospital; and
                (2) is excess to the needs of the Air Force.
        (b) The Secretary may require any additional terms and
    conditions in connection with any conveyance under subsection
    (a) that the Secretary considers appropriate to protect the
    interests of the United States.

                         (including transfer of funds)

        Sec. 313. In addition to amounts appropriated for the
    Department of Defense in the Department of Defense
    Appropriations Act, 2001 (Public Law 106-259), $100,000,000 is
    hereby appropriated for ``Overseas Contingency Operations
    Transfer Fund'' and shall remain available until expended:
    Provided, That the Secretary of Defense may transfer the funds
    provided herein only to appropriations for military personnel;
    operation and maintenance; procurement; research, development,
    test and evaluation; and working capital funds: Provided
    further, That the funds transferred shall be merged with and
    shall be available for the same purposes and for the same time
    period, as the appropriation to which transferred: Provided
    further, That upon a determination that all or part of the
    funds transferred from this appropriation are not necessary for
    the purposes provided herein, such amounts may be transferred
    back to this appropriation: Provided further, That the transfer
    authority provided in this section is in addition to any other
    transfer authority contained elsewhere in this Act: Provided
    further, That funds appropriated by this section, or made
    available by the transfer of funds in this section, for
    intelligence activities are deemed to be specifically
    authorized by the Congress for the purposes of section 504 of
    the National Security Act of 1947 (50 U.S.C. 414) during fiscal
    year 2001: Provided further, That the entire amount made
    available in this section is designated by the Congress as an
    emergency requirement pursuant to section 251(b)(2)(A) of the
    Balanced Budget and Emergency Deficit Control Act of 1985, as
    amended.
        Sec. 314. Of the total amount appropriated by title IV of
    the Department of Defense Appropriations Act, 2001 (Public Law
    106-259) under the heading ``Research, Development, Test and
    Evaluation, Navy'', up to $3,000,000 shall be made available to
    the Marine Corps to pursue research in Nanotechnology for
    Consequence Management.
        Sec. 315. Of the total amount appropriated by title IV of
    the Department of Defense Appropriations Act, 2001 (Public Law
    106-259) under the heading ``Research, Development, Test and
    Evaluation, Army'', not less than $1,500,000 shall be made
    available only for installation of the Medical Area Network for
    Virtual Technologies at Fort Detrick and Walter Reed Army
    Hospital, and not less than $1,000,000 shall be made available
    only to conduct a pilot study to determine the feasibility of
    establishing a Department of Defense Information Analysis
    Center for telemedicine.
        Sec. 316. The Secretary of the Navy shall acquire 50 acres
    of real property located on Reed Island, along the south shore
    of the St. John's River across from Blount Island Command,
    Jacksonville, Florida. The Secretary of the Navy shall pay not
    more than the fair market value of the property, to be
    determined pursuant to an appraisal acceptable to the Secretary
    of the Navy; but in no case shall the price exceed $4,200,000:
    Provided, That the exact acreage and legal description of the
    real property to be acquired pursuant to this section shall be
    determined by a survey satisfactory to the Secretary of the
    Navy: Provided further, That the Secretary of the Navy may
    require such additional terms and conditions in connection with
    the land acquisition pursuant to this section as the Secretary
    considers appropriate to protect the interests of the United
    States.
        Sec. 317. Of the total amount appropriated by title IV of
    the Department of Defense Appropriations Act, 2001 (Public Law
    106-259) under the heading ``Research, Development, Test, and
    Evaluation, Navy'' the Secretary of the Navy may establish
    Marine Fire Training Centers at the Marine and Environmental
    Research and Training Station and Barbers Point by grants or
    contracts.
        Sec. 318. Notwithstanding any other provision of law, and
    notwithstanding the provisions in section 7306 of title 10,
    United States Code, of the funds provided in the Department of
    Defense Appropriations Act, 2001 (Public Law 106-259) for
    ``Operation and Maintenance, Navy'', $750,000 shall be
    available only for repair of ex-Turner Joy.
        Sec. 319. In addition to amounts appropriated or otherwise
    made available for the Department of Defense elsewhere in this
    Act or in the Department of Defense Appropriations Act, 2001
    (Public Law 106-259), $2,000,000 is hereby appropriated under
    the heading ``Operation and Maintenance, Defense-Wide'', to
    remain available for obligation until September 30, 2001, only
    for the Defense Imagery and Mapping Agency Program.
        Sec. 320. None of the funds available in the Department of
    Defense Appropriations Act, 2001 (Public Law 106-259) shall be
    used to consolidate or incorporate Air Force radar operations
    maintenance and support programs or contracts into an Air Force
    SENSOR or a similar acquisition program.
        Sec. 321. In addition to amounts appropriated elsewhere in
    this Act, or in the Department of Defense Appropriations Act,
    2001 (Public Law 106-259), $1,000,000 is hereby appropriated to
    ``Research, Development, Test and Evaluation, Air Force'', only
    to develop rapid diagnostic and fingerprinting techniques along
    with molecular monitoring systems for the detection of
    nosocomial infections.
        Sec. 322. Of the total amount appropriated by title IV of
    the Department of Defense Appropriations Act, 2001 (Public Law
    106-259) under the heading ``Research, Development, Test and
    Evaluation, Navy'', $1,500,000 shall be made available by grant
    or contract only to the California Central Coast Research
    Partnership (C3RP).
        Sec. 323. Fort Irwin National Training Center Expansion.
    (a) Findings.--Congress makes the following findings:
                (1) The National Training Center at Fort Irwin,
            California, is the only instrumented training area in
            the world suitable for live fire training of heavy
            brigade-sized military forces and thus provides the
            Army with essential training opportunities necessary to
            maintain and improve military readiness and promote
            national security.
                (2) The National Training Center must be expanded
            to meet the critical need of the Army for additional
            training lands suitable for the maneuver of large
            numbers of military personnel and equipment, which is
            necessitated by advances in equipment, by doctrinal
            changes, and by Force XXI doctrinal experimentation
            requirements.
                (3) The lands being considered for expansion of the
            National Training Center are home to the desert
            tortoise and other species that are protected under the
            Endangered Species Act of 1973, and the Secretary of
            Defense and the Secretary of the Interior, in
            developing a plan for expansion of the National
            Training Center, must provide for such expansion in a
            manner that complies with the Endangered Species Act of
            1973, the National Environmental Policy Act of 1969,
            and other applicable laws.
                (4) In order for the expansion of the National
            Training Center to be implemented on an expedited
            basis, the Secretaries should proceed without delay to
            define with specificity the key elements of the
            expansion plan, including obtaining early input
            regarding national security requirements, Endangered
            Species Act of 1973 compliance and mitigation, and
            National Environmental Policy Act of 1969 compliance.
        (b) Purpose.--The purpose of this section is to expedite
    the expansion of the National Training Center at Fort Irwin,
    California, in a manner that is fully compliant with
    environmental laws.
        (c) Preparation of Proposed Expansion Plan.--
                (1) Preparation required.--The Secretary of the
            Army and the Secretary of the Interior (in this section
            referred to as the ``Secretaries'') shall jointly
            prepare a proposed plan for the expansion of the
            National Training Center at Fort Irwin, California.
                (2) Submission and availability.--The plan required
            by paragraph (1) (in this section referred to as the
            ``proposed expansion plan'') shall be completed not
            later than 120 days after the date of the enactment of
            this Act. When completed, the Secretaries shall make
            the proposed expansion plan available to the public and
            shall publish in the Federal Register a ``notice of
            availability'' concerning the proposed expansion plan.
        (d) Key Elements of Proposed Expansion Plan.--
                (1) Joint report.--Not later than 45 days after the
            date of the enactment of this Act, the Secretaries
            shall submit to Congress a joint report that identifies
            the key elements of the proposed expansion plan.
                (2) Lands withdrawal and reservation.--The proposed
            expansion plan shall include the withdrawal and
            reservation of an appropriate amount of public lands
            for--
                        (A) the conduct of combined arms military
                    training at the National Training Center;
                        (B) the development and testing of military
                    equipment at the National Training Center;
                        (C) other defense-related purposes; and
                        (D) conservation and research purposes.
                (3) Conservation measures.--The proposed expansion
            plan shall also include a general description of
            conservation measures, anticipated to cost
            approximately $75,000,000, that may be necessary and
            appropriate to protect and promote the conservation of
            the desert tortoise and other endangered or threatened
            species and their critical habitats in designated
            wildlife management areas in the West Mojave Desert.
            The conservation measures may include--
                        (A) the establishment of one or more
                    research natural areas, which may include lands
                    both within and outside the National Training
                    Center;
                        (B) the acquisition of private and State
                    lands within the wildlife management areas in
                    the West Mojave Desert;
                        (C) the construction of barriers, fences,
                    and other structures that would promote the
                    conservation of endangered or threatened
                    species and their critical habitats;
                        (D) the funding of research studies; and
                        (E) other conservation measures.
        (d) Preliminary Review of Expansion Plan.--
                (1) Review required.--Not later than 90 days after
            the date of the enactment of this Act, the Director of
            the United States Fish and Wildlife Service shall
            submit to the Secretaries a preliminary review of the
            proposed expansion plan (as developed as of that date).
            In the preliminary review, the Director shall identify,
            with as much specificity as possible, an approach for
            implementing the proposed expansion plan consistent
            with the Endangered Species Act of 1973 (16 U.S.C. 1531
            et seq.).
                (2) Relation to formal review.--The preliminary
            review under paragraph (1) shall not constitute a
            formal consultation under section 7 of the Endangered
            Species Act of 1973 (16 U.S.C. 1536), but shall be used
            to assist the Secretaries in more precisely defining
            the nature and scope of an expansion plan for the
            National Training Center that is likely to satisfy
            requirements of the Endangered Species Act of 1973 and
            to expedite the formal consultation process under
            section 7 of such Act.
                (3) Consideration of preliminary review.--In
            preparing the proposed expansion plan, the Secretaries
            shall take into account the content of the preliminary
            review by the Director of the United States Fish and
            Wildlife Service under paragraph (1).
        (e) Draft Legislation.--The Secretaries shall submit to
    Congress with the proposed expansion plan a draft of proposed
    legislation providing for the withdrawal and reservation of
    public lands for the expansion of the National Training Center.
    It is the sense of the Congress that the proposed legislation
    should contain a provision that, if enacted, would prohibit
    ground-disturbing military use of the land to be withdrawn and
    reserved by the legislation until the Secretaries have
    certified that there has been full compliance with the
    appropriate provisions of the legislation, the Endangered
    Species Act of 1973, the National Environmental Policy Act of
    1969, and other applicable laws.
        (f) Consultation Under Endangered Species Act of 1973.--The
    Secretaries shall initiate the formal consultation required
    under section 7 of the Endangered Species Act of 1973 (16
    U.S.C. 1536) with respect to expansion of the National Training
    Center as soon as practicable and shall complete such
    consultation not later than two years after the date of the
    enactment of this Act.
        (g) Environmental Review.--Not later than six months
    following completion of the formal consultation required under
    section 7 of the Endangered Species Act of 1973 with respect to
    expansion of the National Training Center, the Secretaries
    shall complete any analysis required under the National
    Environmental Policy Act of 1969 with respect to the proposed
    expansion of the National Training Center. The analysis shall
    be coordinated, to the extent practicable and appropriate, with
    the review of the West Mojave Coordinated Management Plan that,
    as of the date of the enactment of this Act, is being
    undertaken by the Bureau of Land Management.
        (h) Funding.--
                (1) Implementation of conservation measures.--There
            are authorized to be appropriated $75,000,000 to the
            Secretary of the Army for the implementation of
            conservation measures necessary for the final expansion
            plan for the National Training Center to comply with
            the Endangered Species Act of 1973.
                (2) Implementation of section.--The amounts of
            $2,500,000 for ``Operation and Maintenance, Army'' and
            $2,500,000 for ``Management of Lands and Resources,
            Bureau of Land Management'' are hereby appropriated to
            the Secretary of the Army and the Secretary of the
            Interior, respectively, only to undertake and complete
            on an expedited basis the activities specified in this
            section.

                                   CHAPTER 4

                       DISTRICT OF COLUMBIA FEDERAL FUNDS

               Federal Payment to the District of Columbia Courts

        For an additional amount for the District of Columbia
    courts for capital repairs necessitated by the recent fire
    damage to the courthouse facilities, $350,000, to remain
    available until September 30, 2002, and for an additional
    amount for such repairs for the Superior Court of the District
    of Columbia, $50,000: Provided, That after providing notice to
    the Committees on Appropriations of the Senate and House of
    Representatives, the District of Columbia courts may reallocate
    not more than $1,000,000 of the funds provided under this
    heading under the District of Columbia Appropriations Act,
    2001, among the items and entities funded under such heading
    for the costs of such repairs.

                        General Provisions--This Chapter

        Sec. 401. (a) Section 106(b) of the District of Columbia
    Public Works Act of 1954 (sec. 43-1552(b), DC Code), as amended
    by section 133 of the District of Columbia Appropriations Act,
    1990, is amended--
                (1) in the third sentence of paragraph (1), by
            striking ``United States Treasury and'' and all that
            follows through ``by the''; and
                (2) by adding at the end the following new
            paragraph:
        ``(5) Not later than the 15th day of the month following
    each quarter (beginning with the first quarter of fiscal year
    2001), the inspector general of each Federal department,
    establishment, or agency receiving water services from the
    District of Columbia shall submit a report to the Committees on
    Appropriations of the House of Representatives and Senate
    analyzing the promptness of payment with respect to the
    services furnished to such department, establishment, or
    agency.''.
        (b) Section 212(b) of the District of Columbia Public Works
    Act of 1954 (sec. 43-1612(b), DC Code), as amended by section
    133 of the District of Columbia Appropriations Act, 1990, is
    amended--
                (1) in the third sentence of paragraph (1), by
            striking ``United States Treasury and'' and all that
            follows through ``by the''; and
                (2) by adding at the end the following new
            paragraph:
        ``(5) Not later than the 15th day of the month following
    each quarter (beginning with the first quarter of fiscal year
    2001), the inspector general of each Federal department,
    establishment, or agency receiving sanitary sewer services from
    the District of Columbia shall submit a report to the
    Committees on Appropriations of the House of Representatives
    and Senate analyzing the promptness of payment with respect to
    the services furnished to such department, establishment, or
    agency.''.
        (c) The amendments made by this section shall take effect
    as if included in the enactment of section 133 of the District
    of Columbia Appropriations Act, 1990.
        Sec. 402. (a) The Act entitled ``An Act donating certain
    Lots in the City of Washington for Schools for Colored Children
    in the District of Columbia'', approved July 28, 1866 (14 Stat.
    343), is amended by striking the second sentence.
        (b) Section 319 of the Revised Statutes of the United
    States relating to the District of Columbia and Post Roads
    (sec. 31-206, D.C. Code) is repealed.
        Sec. 403. Restrictions on Use of Annual Unobligated Balance
    in D.C. Crime Victims Compensation Fund. (a) In General.--
    Section 16(d) of the Victims of Violent Crime Compensation Act
    of 1996 (sec. 3-435(d), D.C. Code), as added by section 160(d)
    of the District of Columbia Appropriations Act, 2000, is
    amended to read as follows:
        ``(d) Any unobligated balance existing in the Fund in
    excess of $250,000 as of the end of each fiscal year (beginning
    with fiscal year 2000) may be used only in accordance with a
    plan developed by the District of Columbia and approved by the
    Committees on Appropriations of the Senate and House of
    Representatives, the Committee on Government Reform of the
    House of Representatives, and the Committee on Governmental
    Affairs of the Senate, and not less than 80 percent of such
    balance shall be used for direct compensation payments to crime
    victims through the Fund under this section and in accordance
    with this Act.''.
        (b) Effective Date.--The amendment made by subsection (a)
    shall take effect September 30, 2000.
        Sec. 404. (a) Notwithstanding any provision of the District
    of Columbia Appropriations Act, 2001, the District of Columbia
    may fund the programs identified under the heading ``Reserve''
    in H.R. 4942, One Hundred Sixth Congress, as introduced,
    subject to the conditions described under such heading and upon
    certification by the District of Columbia Financial
    Responsibility and Management Assistance Authority to the
    Committees on Appropriations of the Senate and House of
    Representatives that the Chief Financial Officer of the
    District of Columbia, the Mayor of the District of Columbia,
    and the Council of the District of Columbia have identified and
    implemented such spending reductions as may be necessary to
    ensure that the District of Columbia will not have a budget
    deficit for fiscal year 2001.
        (b)(1) Notwithstanding any provision of the District of
    Columbia Appropriations Act, 2001, the use by the District of
    the funds described in paragraph (2) for Pay-As-You-Go Capital
    Funds shall be optional.
        (2) The funds described in this paragraph are funds set
    aside for the reserve established by section 202(j) of the
    District of Columbia Financial Responsibility and Management
    Assistance Act of 1995 (as amended by section 148 of the
    District of Columbia Appropriations Act, 2000) which are not
    used for purposes of any reserve funds established under the
    District of Columbia Appropriations Act, 2001, or any
    amendments made by such Act.
        (c)(1) The Mayor of the District of Columbia shall deposit
    the annual interest savings resulting from debt reductions
    using the proceeds of the tobacco securitization program into
    the emergency reserve fund established under section 450A of
    the District of Columbia Home Rule Act (as added by section 159
    of the District of Columbia Appropriations Act, 2001).
        (2) This subsection shall apply with respect to fiscal year
    2001 and each succeeding fiscal year until the requirements of
    section 450A of the District of Columbia Home Rule Act have
    been met.
        Sec. 405. Notwithstanding any provision of the District of
    Columbia Appropriations Act, 2001, quarterly disbursements
    shall be calculated and paid to District of Columbia public
    charter schools during fiscal year 2001 in accordance with
    section 107a(b) of the Uniform Per Student Funding Formula for
    Public Schools and Public Charter Schools and Tax Conformity
    Clarification Amendment Act of 1998 (sec. 31-2906.1(b), DC
    Code), as amended by the Enrollment Integrity Act.
        Sec. 406. (a) The provisions of H.R. 5547 (as enacted into
    law by H.R. 4942 of the 106th Congress) are repealed and shall
    be deemed for all purposes (including section 1(b) of H.R.
    4942) to have never been enacted.
          (b) The repeal made by this section shall take effect as
    if included in H.R. 4942 of the 106th Congress on the date of
    its enactment.

                                   CHAPTER 5

                          ENERGY AND WATER DEVELOPMENT

                          DEPARTMENT OF DEFENSE--CIVIL

                             DEPARTMENT OF THE ARMY

                           Corps of Engineers--Civil

                             general investigations

        For an additional amount for ``General Investigations'',
    $900,000, to remain available until expended: Provided, That
    $100,000 shall be available for a reconnaissance study of shore
    protection needs at North Topsail Beach, North Carolina;
    $100,000 shall be available for a reconnaissance study for the
    Passiac County, New Jersey, water infrastructure project;
    $100,000 shall be available for a reconnaissance study of
    flooding, drainage and other related problems in the Cayuga
    Creek Watershed, New York; and $600,000 shall be available for
    a cost-shared feasibility study of the restoration of the lower
    St. Anthony's Falls natural rapids in Minnesota.

                             construction, general

        For an additional amount for ``Construction, General'',
    $2,750,000, to remain available until expended: Provided, That
    $75,000 shall be available for planning and design of a project
    to provide for floodplain evacuation in the watershed of Pond
    Creek, Kentucky; $100,000 shall be available for design of
    recreation and access features at the Louisville Waterfront
    Park in Kentucky; $500,000 shall be available for a Limited
    Reevaluation Report for the Central Boca Raton segment of the
    Palm Beach County, Florida, shore protection project; and
    $75,000 shall be available to conduct research on the
    eradication of Eurasian water milfoil at Houghton Lake,
    Michigan: Provided further, That the Secretary of the Army,
    acting through the Chief of Engineers, is authorized and
    directed to use $2,000,000 of the funds appropriated herein to
    initiate design and construction of the Hawaii Water Management
    Project, including Waiahole Ditch on Oahu, Kau Ditch on Maui,
    Pioneer Mill Ditch on Hawaii, and the complex system on the
    west side of Kauai: Provided further, That the Secretary of the
    Army may use up to $5,000,000 of previously appropriated funds
    to carry out the Abandoned and Inactive Noncoal Mine
    Restoration program authorized by section 560 of Public Law
    106-53.

     flood control, mississippi river and tributaries, arkansas, illinois,
           kentucky, louisiana, mississippi, missouri, and tennessee

        For an additional amount for ``Flood Control, Mississippi
    River and Tributaries, Arkansas, Illinois, Kentucky, Louisiana,
    Mississippi, Missouri, and Tennessee'', $3,500,000, to remain
    available until expended, for prosecuting work of repair,
    restoration or maintenance of the Mississippi River levees, and
    for the correction of deficiencies in the mainline Mississippi
    River levees.

                           DEPARTMENT OF THE INTERIOR

                             Bureau of Reclamation

                          water and related resources

        For an additional amount for ``Water and Related
    Resources'', $2,000,000, to remain available until expended,
    for construction of the Mid-Dakota Rural Water System, in
    addition to amounts made available under the Energy and Water
    Appropriations Development Act, 2001.

                              DEPARTMENT OF ENERGY

                                ENERGY PROGRAMS

                                 Energy Supply

        For an additional amount for ``Energy Supply'', $800,000,
    to remain available until expended, for the Prime, LLC, of
    central South Dakota, for final engineering and project
    development of the integrated ethanol complex, including an
    ethanol unit, waste treatment system, and enclosed cattle feed
    lot.

                                    Science

        For an additional amount for ``Science'', $1,000,000, to
    remain available until expended, for high temperature
    superconducting research and development at Boston College.

                                   CHAPTER 6

                        General Provisions--This Chapter

        Sec. 601. Of the funds appropriated under the heading
    Department of State, International Narcotics Control and Law
    Enforcement, in the Foreign Operations, Export Financing, and
    Related Programs Appropriations Act, 2001, not less than
    $1,350,000 shall be available only for the Protection Project
    to continue its study of international trafficking,
    prostitution, slavery, debt bondage and other abuses of women
    and children.
        Sec. 602. Embassy Compensation Authority. Funds made
    available under the heading ``Other Bilateral Economic
    Assistance, Economic Support Fund'' included in the Foreign
    Operations, Export Financing, and Related Programs
    Appropriations Act, 2001 (Public Law 106-429) may be made
    available, notwithstanding any other provision of law, to
    provide payment to the government of the People's Republic of
    China for property loss and damage arising out of the May 7,
    1999 incident in Belgrade, Federal Republic of Yugoslavia.

                                   CHAPTER 7

                           DEPARTMENT OF THE INTERIOR

                           Bureau of Land Management

                                land acquisition

        For an additional amount for ``Land Acquisition'',
    $5,000,000, to be derived from the Land and Water Conservation
    Fund and to remain available until expended, to carry out the
    provisions of title VI of the Steens Mountain Cooperative
    Management and Protection Act (Public Law 106-399): Provided,
    That sums necessary to complete the individual land exchanges
    identified under title VI shall be provided within thirty days
    of each land exchange.

                    United States Fish and Wildlife Service

                              resource management

        For an additional amount for ``Resource Management'',
    $500,000 for a grant to the Center for Reproductive Biology at
    Washington State University.

                    multinational species conservation fund

        For an additional amount for the ``Multinational Species
    Conservation Fund'', $750,000, to remain available until
    expended, for Great Ape conservation activities authorized by
    law.

                             National Park Service

                     operation of the national park system

        For an additional amount for ``Operation of the National
    Park System'', $100,000 for completion of studies related to
    the Arlington Boathouse in Virginia.

                      national recreation and preservation

        For an additional amount for ``National Recreation and
    Preservation'', $1,600,000, to remain available until expended,
    of which $500,000 is for the National Constitution Center in
    Philadelphia, Pennsylvania and $1,100,000 is for a grant to the
    Historic New Bridge Landing Park Commission.

                           historic preservation fund

        For an additional amount for the ``Historic Preservation
    Fund'', $100,000 for a grant to the Massillon Heritage
    Foundation, Inc. in Massillon, Ohio.

                                  construction

        For an additional amount for ``Construction'', $3,500,000,
    to remain available until expended, of which $1,500,000 is for
    the Stones River National Battlefield and $2,000,000 is for the
    Millennium Cultural Cooperative Park.

                              DEPARTMENT OF ENERGY

                              Energy Conservation

        For an additional amount for ``Energy Conservation'',
    $300,000, to remain available until expended, for a grant to
    the Oak Ridge National Laboratory/Nevada Test Site Development
    Corporation for the development of (1) cooling, refrigeration,
    and thermal energy management equipment capable of using
    natural gas or hydrogen fuels; and (2) improvement of the
    reliability of heat-activated cooling, refrigeration, and
    thermal energy management equipment used in combined heating,
    cooling, and power applications.

                                 RELATED AGENCY

                Woodrow Wilson International Center for Scholars

                           payment to endowment fund

        For payment to the endowment fund of the Woodrow Wilson
    International Center for Scholars $5,000,000: Provided, That
    such funds may be invested in investments approved by the Board
    of Trustees of the Woodrow Wilson International Center for
    Scholars and the income from such investments may be used to
    support the programs of the Center that the Board of Trustees
    and the Director of the Center determine appropriate.

                        General Provision--This Chapter

        Sec. 701. In addition to amounts appropriated in Public Law
    106-291 to the Indian Health Service under the heading ``Indian
    Health Services'', $30,000,000, to remain available until
    expended, is appropriated as follows:
                (1) $15,000,000 shall be provided to the Alaska
            Federation of Natives as a direct lump sum payment
            within 30 days of enactment of this Act for its Alaska
            Native Sobriety and Alcohol Control Program: Provided,
            That the President of the Alaska Federation of Natives
            shall make grants to each Alaska Native regional non-
            profit corporation (as listed in section 103(a)(2) of
            Public Law 104-193 (110 Stat. 2159)) in which there are
            villages, including established villages and organized
            cities under state law, that have voted to ban the
            sale, importation, or possession of alcohol pursuant to
            local option state law: Provided further, That such
            grants shall be used to (1) employ Village Public
            Safety Officers (hereinafter referred to as ``VPSO's'')
            under such terms and conditions that encourage
            retention of such VPSO's and that are consistent with
            agreements with the State of Alaska for the provision
            of such VPSO services, (2) acquisition of law
            enforcement equipment or services, or (3) develop and
            implement restorative justice programs recognized under
            state sentencing law as a community based complement or
            alternative to incarceration or other penalty: Provided
            further, That funds may also be used for activities and
            programs to further the sobriety movement including
            education and treatment. The President of the Alaska
            Federation of Natives shall submit a report on its
            activities and those of its grantees including
            administrative costs and persons served by December 31,
            2001; and
                (2) $15,000,000 shall be provided to the Indian
            Health Service for drug and alcohol prevention and
            treatment services for non-Alaska tribes.

                                   CHAPTER 8

                        General Provisions--This Chapter

        Sec. 801. There are appropriated to the Health Resources
    and Services Administration in the Department of Health and
    Human Services, for the construction of the Biotechnology
    Science Center at the Marshall University in Huntington, West
    Virginia, $25,000,000, to remain available until expended.
          Sec. 802. There are appropriated to the Health Resources
    and Services Administration in the Department of Health and
    Human Services, for the construction of the Christian Nurses
    Hospice in Brentwood, New York, $400,000.
          Sec. 803. There are appropriated to the Institute of
    Museum and Library Services, for expansion of the marine
    biology program at the Long Island Maritime Museum, $250,000.

                                   CHAPTER 9

                               LEGISLATIVE BRANCH

                            CONGRESSIONAL OPERATIONS

                            HOUSE OF REPRESENTATIVES

         Payments to Widows and Heirs of Decreased Members of Congress

        For payment to Laura Y. Bateman, widow of Herbert H.
    Bateman, late a Representative from the State of Virginia,
    $141,300.
        For payment to Susan L. Vento, widow of Bruce F. Vento,
    late a Representative from the State of Minnesota, $141,300.
        For payment to Betty Lee Dixon, widow of Julian C. Dixon,
    late a Representative from the State of California, $141,300.

                            ARCHITECT OF THE CAPITOL

                         Capitol Buildings and Grounds

                               capitol buildings

                             salaries and expenses

        For an additional amount for ``Capitol Buildings and
    Grounds--capitol buildings--salaries and expenses'' for
    necessary expenses for construction of emergency egress from
    the fourth floor of the Capitol Building, $1,033,000, to remain
    available until expended: Provided, That the entire amount is
    designated by the Congress as an emergency requirement pursuant
    to section 251(b)(2)(A) of the Balanced Budget and Emergency
    Deficit Control Act of 1985, as amended.

                              LIBRARY OF CONGRESS

                             Salaries and Expenses

        For the Library of Congress, $25,000,000, to remain
    available until expended, for necessary salaries and expenses
    of the National Digital Information Infrastructure and
    Preservation Program; and an additional $75,000,000, to remain
    available until expended, for such purposes: Provided, That the
    portion of such additional $75,000,000, which may be expended
    shall not exceed an amount equal to the matching contributions
    (including contributions other than money) for such purposes
    that (1) are received by the Librarian of Congress for the
    program from non-Federal sources, and (2) are received before
    March 31, 2003: Provided further, That such program shall be
    carried out in accordance with a plan or plans approved by the
    Committee on House Administration of the House of
    Representatives, the Committee on Rules and Administration of
    the Senate, the Committee on Appropriations of the House of
    Representatives, and the Committee on Appropriations of the
    Senate: Provided further, That of the total amount
    appropriated, $5,000,000 may be expended before the approval of
    a plan to develop such a plan, and to collect or preserve
    essential digital information which otherwise would be
    uncollectible: Provided further, That the balance in excess of
    such $5,000,000 shall not be expended without approval in
    advance by the Committee on Appropriations of the House of
    Representatives and the Committee on Appropriations of the
    Senate: Provided further, That the plan under this heading
    shall be developed by the Librarian of Congress jointly with
    entities of the Federal government with expertise in
    telecommunications technology and electronic commerce policy
    (including the Secretary of Commerce and the Director of the
    White House Office of Science and Technology Policy) and the
    National Archives and Records Administration, and with the
    participation of representatives of other Federal, research,
    and private libraries and institutions with expertise in the
    collection and maintenance of archives of digital materials
    (including the National Library of Medicine, the National
    Agricultural Library, the National Institute of Standards and
    Technology, the Research Libraries Group, the Online Computer
    Library Center, and the Council on Library and Information
    Resources) and representatives of private business
    organizations which are involved in efforts to preserve,
    collect, and disseminate information in digital formats
    (including the Open e-Book Forum): Provided further, That
    notwithstanding any other provision of law, effective with the
    One Hundred Seventh Congress and each succeeding Congress the
    chair of the Subcommittee on the Legislative Branch of the
    Committee on Appropriations of the House of Representatives
    shall serve as a member of the Joint Committee on the Library
    with respect to the Library's financial management,
    organization, budget development and implementation, and
    program development and administration, as well as any other
    element of the mission of the Library of Congress which is
    subject to the requirements of Federal law.

                        General Provisions--This Chapter

        Sec. 901. Retirement Credit for Certain Legislative Branch
    Employees. (a) Former Employees of Congressional Campaign
    Committees.--
                (1) CSRS.--Section 8332(m) of title 5, United
            States Code, as amended by section 312 of the
            Legislative Branch Appropriations Act, 2000, is
            amended--
                        (A) by redesignating paragraphs (2) and (3)
                    as paragraphs (3) and (4); and
                        (B) by inserting after paragraph (1) the
                    following new paragraph:
        ``(2) Upon application to the Office of Personnel
    Management, any individual who was an employee on the date of
    the enactment of this paragraph, and who has on such date or
    thereafter acquires 5 years or more of creditable civilian
    service under this section (exclusive of service for which
    credit is allowed under this subsection) shall be allowed
    credit (as service as a Congressional employee) for service
    before December 31, 1990, while employed by the Democratic
    Senatorial Campaign Committee, the Republican Senatorial
    Campaign Committee, the Democratic National Congressional
    Committee, or the Republican National Congressional Committee,
    if--
                ``(A) such employee has at least 4 years and 6
            months of service on such committees as of December 31,
            1990; and
                ``(B) such employee makes a deposit to the Fund in
            an amount equal to the amount which would be required
            under section 8334(c) if such service were service as a
            Congressional employee.''.
                (2) FERS.--Section 8411 of title 5, United States
            Code, is amended by adding at the end the following new
            subsection:
        ``(i)(1) Upon application to the Office of Personnel
    Management, any individual who was an employee on the date of
    the enactment of this paragraph, and who has on such date or
    thereafter acquires 5 years or more of creditable civilian
    service under this section (exclusive of service for which
    credit is allowed under this subsection) shall be allowed
    credit (as service as a Congressional employee) for service
    before December 31, 1990, while employed by the Democratic
    Senatorial Campaign Committee, the Republican Senatorial
    Campaign Committee, the Democratic National Congressional
    Committee, or the Republican National Congressional Committee,
    if--
                ``(A) such employee has at least 4 years and 6
            months of service on such committees as of December 31,
            1990; and
                ``(B) such employee deposits to the Fund an amount
            equal to 1.3 percent of the base pay for such service,
            with interest.
        ``(2) The Office shall accept the certification of the
    President of the Senate (or the President's designee) or the
    Speaker of the House of Representatives (or the Speaker's
    designee), as the case may be, concerning the service of, and
    the amount of compensation received by, an employee with
    respect to whom credit is to be sought under this subsection.
        ``(3) An individual shall not be granted credit for such
    service under this subsection if eligible for credit under
    section 8332(m) for such service.''.
        (b) Former Employees of Legislative Service
    Organizations.--
                (1) Service of employees of legislative service
            organizations.--
                        (A) In general.--Subject to succeeding
                    provisions of this paragraph, upon application
                    to the Office of Personnel Management in such
                    form and manner as the Office shall prescribe,
                    any individual who performed service as an
                    employee of a legislative service organization
                    of the House of Representatives (as defined and
                    authorized in the One Hundred Third Congress)
                    and whose pay was paid in whole or in part by a
                    source other than the Clerk Hire account of a
                    Member of the House of Representatives (other
                    than an individual described in paragraph (6))
                    shall be entitled--
                                (i) to receive credit under the
                            provisions of subchapter III of chapter
                            83 or chapter 84 of title 5, United
                            States Code (whichever would be
                            appropriate), as Congressional employee
                            service, for all such service; and
                                (ii) to have all pay for such
                            service which was so paid by a source
                            other than the Clerk Hire account of a
                            Member included (in addition to any
                            amounts otherwise included in basic
                            pay) for purposes of computing an
                            annuity payable out of the Civil
                            Service Retirement and Disability Fund.
                        (B) Deposit requirement.--In order to be
                    eligible for the benefits described in
                    subparagraph (A), an individual shall be
                    required to pay into the Civil Service
                    Retirement and Disability Fund an amount equal
                    to the difference between--
                                (i) the employee contributions that
                            were actually made to such Fund under
                            applicable provisions of law with
                            respect to the service described in
                            subparagraph (A); and
                                (ii) the employee contributions
                            that would have been required with
                            respect to such service if the amounts
                            described in subparagraph (A)(ii) had
                            also been treated as basic pay.
                    The amount required under this subparagraph
                    shall include interest, which shall be computed
                    under section 8334(e) of title 5, United States
                    Code.
                        (C) Certain offsets required in order to
                    prevent double contributions and benefits.--In
                    the case of any period of service as an
                    employee of a legislative service organization
                    which constituted employment for purposes of
                    title II of the Social Security Act--
                                (i) any pay for such service (as
                            described in subparagraph (A)(ii)) with
                            respect to which the deposit under
                            subparagraph (B) would otherwise be
                            computed by applying the first sentence
                            of section 8334(a)(1) of title 5,
                            United States Code, shall instead be
                            computed in a manner based on section
                            8334(k) of such title; and
                                (ii) any retirement benefits under
                            subchapter III of chapter 83 of title
                            5, United States Code, shall be subject
                            to offset (to reflect that portion of
                            benefits under title II of the Social
                            Security Act attributable to pay
                            referred to in subparagraph (A))
                            similar to that provided for under
                            section 8349 of such title.
                (2) Survivor annuitants.--For purposes of survivor
            annuities, an application authorized by this section
            may, in the case of an individual under paragraph (1)
            who has died, be made by a survivor of such individual.
                (3) Recomputation of annuities.--Any annuity or
            survivor annuity payable as of when an individual makes
            the deposit required under paragraph (1) shall be
            recomputed to take into account the crediting of
            service under such paragraph for purposes of amounts
            accruing for any period beginning on or after the date
            on which the individual makes the deposit.
                (4) Certification of speaker.--The Office of
            Personnel Management shall accept the certification of
            the Speaker of the House of Representatives (or the
            Speaker's designee) concerning the service of, and the
            amount of compensation received by, an employee with
            respect to whom credit is to be sought under this
            subsection.
                (5) Notification and other duties of the office of
            personnel management.--
                        (A) Notice.--The Office of Personnel
                    Management shall take such action as may be
                    necessary and appropriate to inform individuals
                    of any rights they might have as a result of
                    the enactment of this subsection.
                        (B) Assistance.--The Office shall, on
                    request, assist any individual in obtaining
                    from any department, agency, or other
                    instrumentality of the United States any
                    information in the possession of such
                    instrumentality which may be necessary to
                    verify the entitlement of such individual to
                    have any service credited under this subsection
                    or to have an annuity recomputed under
                    paragraph (3).
                        (C) Information.--Any department, agency,
                    or other instrumentality of the United States
                    which possesses any information with respect to
                    an individual's performance of any service
                    described in paragraph (1) shall, at the
                    request of the office, furnish such information
                    to the Office.
                (6) Exclusion of certain employees.--An individual
            is not eligible for credit under this subsection if the
            individual served as an employee of the House of
            Representatives for an aggregate period of 5 years or
            longer after the individual's final period of service
            as an employee of a legislative service organization of
            the House of Representatives.
                (7) Member defined.--In this subsection, the term
            ``Member of the House of Representatives'' includes a
            Delegate or Resident Commissioner to the Congress.
        Sec. 902. (a) The Legislative Branch Appropriations Act,
    2001 is amended under the subheading ``miscellaneous items''
    under the heading ``SENATE'' under title I by striking
    ``$8,655,000'' and inserting ``$25,155,000''.
        (b) The amendment made by subsection (a) shall take effect
    as if included in the enactment of the Legislative Branch
    Appropriations Act, 2001.
        Sec. 903. Beginning on the first day of the 107th Congress,
    the Presiding Officer of the Senate shall apply all of the
    precedents of the Senate under Rule XXVIII in effect at the
    conclusion of the 103rd Congress. Further that there is now in
    effect a Standing order of the Senate that the reading of
    conference reports is no longer required, if the said
    conference report is available in the Senate.

                                   CHAPTER 10

                        General Provisions--This Chapter

        Sec. 1001. In addition to amounts appropriated or otherwise
    made available in the Military Construction Appropriations Act,
    2001, $43,500,000 is hereby appropriated to the Department of
    Defense, to remain available until September 30, 2005, as
    follows:
                ``Military Construction, Army'', $27,000,000;
                ``Military Construction, Air Force'', $12,000,000;
                ``Military Construction, Army National Guard'',
            $4,500,000:
    Provided, That notwithstanding any other provision of law, such
    funds may be obligated or expended to carry out planning and
    design, military construction, and family housing projects not
    otherwise authorized by law.
        Sec. 1002. Transfer of Jurisdiction, Melrose Air Force
    Range, New Mexico. (a) Transfer Required.--(1) The Secretary of
    the Interior shall transfer, without reimbursement, to the
    administrative jurisdiction of the Secretary of the Air Force
    the surface estate in the real property described in paragraph
    (2), which consists of 6,713.90 acres of public domain lands in
    Roosevelt County, New Mexico.
        (2) The transfer of administrative jurisdiction under
    paragraph (1) encompasses the following sections (or portions
    thereof):
                (A) In Township 1 North, Range 30 East, New Mexico
            Prime Meridian:
                        (i) Sec. 2 (S\1/2\).
                        (ii) Sec. 11. All.
                        (iii) Sec. 20 (S\1/2\SE\1/4\).
                        (iv) Sec. 28. All.
                (B) In Township 1 South, Range 30 East, New Mexico
            Prime Meridian:
                        (i) Sec. 2 (Lots 1-12, S\1/2\).
                        (ii) Sec. 3 (Lots 1-12, S\1/2\).
                        (iii) Sec. 4 (Lots 1-12, S\1/2\).
                        (iv) Sec. 6 (Lots 1 and 2).
                        (v) Sec. 9 (N\1/2\, N\1/2\S\1/2\).
                        (vi) Sec. 10 (N\1/2\, N\1/2\S\1/2\).
                        (vii) Sec. 11 (N\1/2\, N\1/2\S\1/2\).
                (C) In Township 2 North, Range 30 East, New Mexico
            Prime Meridian:
                        (i) Sec. 20 (E\1/2\S\1/4\).
                        (ii) Sec. 21 (SW\1/4\, W\1/2\SE\1/4\).
                        (iii) Sec. 28 (W\1/2\E\1/2\, W\1/2\).
                        (iv) Sec. 29 (E\1/2\E\1/2\).
                        (v) Sec. 32 (E\1/2\E\1/2\).
                        (vi) Sec. 33 (W\1/2\E\1/2\, NW\1/4\, S\1/
                    2\SW\1/4\).
        (b) Status of Surface Estate.--Upon transfer under
    subsection (a), the surface estate is deemed to be real
    property subject to the Federal Property and Administrative
    Services Act of 1949 (40 U.S.C. 471 et seq.).
        (c) Withdrawal of Mineral Estate.--Subject to valid
    existing rights, the mineral estate of the lands described in
    subsection (a) are withdrawn from all forms of appropriation
    under the public land laws, including the mining laws and the
    mineral and geothermal leasing laws, but not the Act of July
    31, 1947 (commonly known as the Materials Act of 1947; 30
    U.S.C. 601 et seq.).
        (d) Use of Mineral Materials.--Notwithstanding subsection
    (c) or the Act of July 31, 1947, the Secretary of the Air Force
    may use, without application to the Secretary of the Interior,
    the sand, gravel, or similar mineral material resources on the
    lands described in subsection (a), of the type subject to
    disposition under the Act of July 31, 1947, when the use of
    such resources is required for construction needs on the
    Melrose Air Force Range, New Mexico.
        Sec. 1003. Transfer of Jurisdiction, Yakima Training
    Center, Washington. (a) Transfer Required.--(1) The Secretary
    of the Interior shall transfer, without reimbursement, to the
    administrative jurisdiction of the Secretary of the Army the
    surface estate in the real property described in paragraph (2),
    which consists of 6,640.02 acres of public domain lands in
    Kittitas County, Washington.
        (2) The transfer of administrative jurisdiction under
    paragraph (1) encompasses the following sections (or portions
    thereof):
                (A) In Township 17 North, Range 20 East, Willamette
            Meridian:
                        (i) Sec. 22 (S\1/2\).
                        (ii) Sec. 24 (S\1/2\SW\1/4\ and that
                    portion of the E\1/2\ lying south of the
                    Interstate Highway 90 right-of-way).
                        (iii) Sec. 26. All.
                (B) In Township 16 North, Range 21 East, Willamette
            Meridian:
                        (i) Sec. 4 (SW\1/4\SW\1/4\).
                        (ii) Sec. 12 (SE\1/4\).
                        (iii) Sec. 18 (Lots 1, 2, 3, and 4, E\1/2\
                    and E\1/2\W\1/2\).
                (C) In Township 17 North, Range 21 East, Willamette
            Meridian:
                        (i) Sec. 30 (Lots 3 and 4).
                        (ii) Sec. 32 (NE\1/4\SE\1/4\).
                (D) In Township 16 North, Range 22 East, Willamette
            Meridian:
                        (i) Sec. 2 (Lots 1, 2, 3, and 4, S\1/2\N\1/
                    2\ and S\1/2\).
                        (ii) Sec. 4 (Lots 1, 2, 3, and 4, S\1/
                    2\N\1/2\ and S\1/2\).
                        (iii) Sec. 10. All.
                        (iv) Sec. 14. All.
                        (v) Sec. 20 (SE\1/4\SW\1/4\).
                        (vi) Sec. 22. All.
                        (vii) Sec. 26 (N\1/2\).
                        (viii) Sec. 28 (N\1/2\).
                (E) In Township 16 North, Range 23 East, Willamette
            Meridian:
                        (i) Sec. 18 (Lots 3 and 4, E\1/2\SW\1/4\,
                    W\1/2\SE\1/4\, and that portion of the E\1/
                    2\SE\1/4\ lying westerly of the westerly right-
                    of-way line of Huntzinger Road).
                        (ii) Sec. 20 (That portion of the SW\1/4\
                    lying westerly of the easterly right-of-way
                    line of the railroad).
                        (iii) Sec. 30 (Lots 1 and 2, NE\1/4\ and
                    E\1/2\NW\1/4\).
        (b) Status of Surface Estate.--Upon transfer under
    subsection (a), the surface estate is deemed to be real
    property subject to the Federal Property and Administrative
    Services Act of 1949 (40 U.S.C. 471 et seq.).
        (c) Withdrawal of Mineral Estate.--(1) Subject to valid
    existing rights, the mineral estate of the lands described in
    subsection (a), as well as the additional lands described in
    paragraph (2), are withdrawn from all forms of appropriation
    under the public land laws, including the mining laws and the
    geothermal leasing laws, but not the Act of July 31, 1947
    (commonly known as the Materials Act of 1947; 30 U.S.C. 601, et
    seq.) and the Mineral Leasing Act (30 U.S.C. 181 et seq.):
        (2) The additional lands referred to in paragraph (1)
    consist of 3,090.80 acres in the following sections (or
    portions thereof):
                (A) In Township 16 North, Range 20 East, Willamette
            Meridian:
                        (i) Sec. 12. All.
                        (ii) Sec. 18 (Lot 4 and SE\1/4\).
                        (iii) Sec. 20 (S\1/2\).
                (B) In Township 16 North, Range 21 East, Willamette
            Meridian:
                        (i) Sec. 4 (Lots 1, 2, 3, and 4, S\1/
                    2\NE\1/4\).
                        (ii) Sec. 8. All.
                (C) In Township 16 North, Range 22 East, Willamette
            Meridian:
                        (i) Sec. 12. All.
                (D) In Township 17 North, Range 21 East, Willamette
            Meridian:
                        (i) Sec. 32 (S\1/2\SE\1/4\).
                        (ii) Sec. 34 (W\1/2\).
        (d) Use of Mineral Materials.--Notwithstanding subsection
    (c) or the Act of July 31, 1947, the Secretary of the Army may
    use, without application to the Secretary of the Interior, the
    sand, gravel, or similar mineral material resources on the
    lands described in subsections (a) and (c), of the type subject
    to disposition under the Act of July 31, 1947, when the use of
    such resources is required for construction needs on the Yakima
    Training Center, Washington.

                                   CHAPTER 11

                          DEPARTMENT OF TRANSPORTATION

                        General Provisions--This Chapter

        Sec. 1101. Section 5309(g)(4)(D)(2) of title 49, United
    States Code, is amended by striking ``light''.
        Sec. 1102. Item number 630 of the table contained in
    section 1602 of the Transportation Act for the 21st Century
    (112 Stat. 280), relating to Buffalo, New York, is amended by
    striking ``Design and construct Outer Harbor Bridge in
    Buffalo'' and inserting ``Transportation infrastructure
    improvements, Inner Harbor/Redevelopment project, Buffalo''.
        Sec. 1103. If the State of Arkansas incorporates into the
    relocation of U.S. Route 71 through Fort Chaffee, Arkansas,
    land obtained by the State from the Federal Government as a
    result of the closure of a military installation, the Secretary
    of Transportation shall credit to the State share of the cost
    of the relocation the fair market value of such land .
        Sec. 1104. For an additional amount to enable the Secretary
    of Transportation to make a grant to the Huntsville
    International Airport, $2,500,000, to be derived from the
    airport and airway trust fund, to remain available until
    expended.
        Sec. 1105. Notwithstanding any other provision of law, for
    necessary expenses for the Southeast Light Rail Extension
    Project in Dallas, Texas, $1,000,000, to be derived from the
    Mass Transit Account of the Highway Trust Fund and to remain
    available until expended.
        Sec. 1106. Section 1105(c) of the Intermodal Surface
    Transportation Efficiency Act of 1991 (105 Stat. 2032-2033) is
    amended by striking paragraph (38) and replacing it with the
    following--
                ``(38) The Ports-to-Plains Corridor from Laredo,
            Texas, via I-27 to Denver, Colorado, shall include:
                        ``(A) In the State of Texas the Ports-to-
                    Plains Corridor shall generally follow--
                                ``(i) I-35 from Laredo to United
                            States Route 83 at Exit 18;
                                ``(ii) United States Route 83 from
                            Exit 18 to Carrizo Springs;
                                ``(iii) United States Route 277
                            from Carrizo Springs to San Angelo;
                                ``(iv) United States Route 87 from
                            San Angelo to Sterling City;
                                ``(v) From Sterling City to Lamesa,
                            the Corridor shall follow United States
                            Route 87 and, the corridor shall also
                            follow Texas Route 158 from Sterling
                            City to I-20, then via I-20 West to
                            Texas Route 349 and, Texas Route 349
                            from Midland to Lamesa;
                                ``(vi) United States Route 87 from
                            Lamesa to Lubbock;
                                ``(vii) I-27 from Lubbock to
                            Amarillo; and
                                ``(viii) United States Route 287
                            from Amarillo to Dumas.
                        ``(B) The corridor designation contained in
                    paragraph (A) shall take effect only if the
                    Texas Transportation Commission has not
                    designated the Ports-to-Plains Corridor in
                    Texas by June 30, 2001.''.
        Sec. 1107. For an additional amount to enable the Secretary
    of Transportation to make a grant for the Newark-Elizabeth rail
    link project, New Jersey, $3,000,000, to be derived from the
    Mass Transit Account of the Highway Trust Fund and to remain
    available until expended.
        Sec. 1108. Section 5309(m)(3)(C) of Title 49 United States
    Code shall not apply to the funds made available in the
    Department of Transportation and Related Agencies
    Appropriations Act, 2001: Provided, That notwithstanding any
    other provision of law, the 14th Street Bridge, Virginia;
    Chouteau Bridge, Jackson County, Missouri; Clement C. Clay
    Bridge replacement, Morgan/Madison counties, Alabama;
    Fairfield-Benton-Kennebec River Bridge, Maine; Florida Memorial
    Bridge, Florida; Historic Woodrow Wilson Bridge, Mississippi;
    Missisquoi Bay Bridge, Vermont; Oaklawn Bridge, South Pasadena,
    California; Pearl Harbor Memorial Bridge replacement,
    Connecticut; Powell County Bridge, Montana; Santa Clara Bridge,
    Oxnard, California; Star City Bridge, West Virginia; US 231
    Bridge over Tennessee River, Alabama; US 54/US 69 Bridge,
    Kansas; Waimalu Bridge replacement on I-1, Hawaii; Washington
    Bridge, Rhode Island are eligible in fiscal year 2001 under
    section 144(g)(2) of title 23, United States Code: Provided
    further, That section 378 of Public Law 106-346 is amended by
    inserting after ``US 101'' the following: ``and Interstate 5
    Trade Corridor''.
        Sec. 1109. Notwithstanding any other provision of law, in
    addition to funds otherwise appropriated in this or any other
    Act for fiscal year 2001, $4,000,000 is hereby appropriated
    from the Highway Trust Fund for Commercial Remote Sensing
    Products and Spatial Information Technologies under section
    5113 of Public Law 105-178, as amended: Provided, That such
    funds are used to study the creation of a new highway right of
    way south of I-10 along the Mississippi Gulf Coast by
    relocating the existing railroad right of way out of downtown
    areas.
        Sec. 1110. Amtrak is authorized to obtain services from the
    Administrator of General Services, and the Administrator is
    authorized to provide services to Amtrak, under sections 201(b)
    and 211(b) of the Federal Property and Administrative Services
    Act of 1949 (40 U.S.C. 481(b) and 491(b)) for fiscal year 2001
    and each fiscal year thereafter until the fiscal year that
    Amtrak operates without Federal operating grant funds
    appropriated for its benefit, as required by sections 24101(d)
    and 24104(a) of title 49, United States Code.
        Sec. 1111. Of the funds made available in the ``Alteration
    of bridges'' account of the Department of Transportation and
    Related Agencies Appropriations Act, 2001 for the Fox River
    Bridge, $575,000 shall be transferred by the Secretary of
    Transportation to the City of Oshkosh for removal of the bridge
    located at mile point 56.9 of the Fox River in Oshkosh,
    Wisconsin. The United States shall assume no responsibility for
    project management relating to removal of the bridge.
        Sec. 1112. Notwithstanding section 27 of the Merchant
    Marine Act, 1920 (46 App. U.S.C. 883), section 8 of the Act of
    June 19, 1886 (46 App. U.S.C. 289), and section 12106 of title
    46, United States Code, the Secretary of Transportation may
    issue a certificate of documentation with appropriate
    endorsement for employment in the coastwise trade for the
    following vessels:
                (1) M/V WELLS GRAY (State of Alaska registration
            number AK 9452 N; former Canadian registration number
            154661); and
                (2) ANNANDALE (United States official number
            519434).
        Sec. 1113. Conveyance of Coast Guard Property in
    Middletown, California. (a) Authority To Convey.--
                (1) In general.--The Administrator of General
            Services (in this section referred to as the
            ``Administrator'') may promptly convey to Lake County,
            California (in this section referred to as the
            ``County''), without consideration, all right, title,
            and interest of the United States (subject to
            subsection (c)) in and to the property described in
            subsection (b).
                (2) Identification of property.--The Administrator,
            in consultation with the Commandant of the Coast Guard,
            may identify, describe, and determine the property to
            be conveyed under this section.
        (b) Property Described.--
                (1) In general.--The property referred to in
            subsection (a) is such portion of the Coast Guard LORAN
            Station Middletown as has been reported to the General
            Services Administration to be excess property,
            consisting of approximately 733.43 acres, and is
            comprised of all or part of tracts A-101, A-102, A-104,
            A-105, A-106, A-107, A-108, and A-111.
                (2) Survey.--The exact acreage and legal
            description of the property conveyed under subsection
            (a), and any easements or rights-of-way reserved by the
            United States under subsection (c)(1), shall be
            determined by a survey satisfactory to the
            Administrator. The cost of the survey shall be borne by
            the County.
        (c) Conditions.--
                (1) In general.--In making the conveyance under
            subsection (a), the Administrator shall--
                        (A) reserve for the United States such
                    existing rights-of-way for access and such
                    easements as are necessary for continued
                    operation of the LORAN station;
                        (B) preserve other existing easements for
                    public roads and highways, public utilities,
                    irrigation ditches, railroads, and pipelines;
                    and
                        (C) impose such other restrictions on use
                    of the property conveyed as are necessary to
                    protect the safety, security, and continued
                    operation of the LORAN station.
                (2) Firebreaks and fence.--(A) The Administrator
            may not convey any property under this section unless
            the County and the Commandant of the Coast Guard enter
            into an agreement with the Administrator under which
            the County is required, in accordance with design
            specifications and maintenance standards established by
            the Commandant--
                        (i) to establish and construct within 6
                    months after the date of the conveyance, and
                    thereafter to maintain, firebreaks on the
                    property to be conveyed; and
                        (ii) construct within 6 months after the
                    date of conveyance, and thereafter maintain, a
                    fence approved by the Commandant along the
                    property line between the property conveyed and
                    adjoining Coast Guard property.
                (B) The agreement shall require that--
                        (i) the County shall pay all costs of
                    establishment, construction, and maintenance of
                    firebreaks under subparagraph (A)(i); and
                        (ii) the Commandant shall provide all
                    materials needed to construct a fence under
                    subparagraph (A)(ii), and the County shall pay
                    all other costs of construction and maintenance
                    of the fence.
                (3) Covenants appurtenant.--The Administrator shall
            take actions necessary to render the requirement to
            establish, construct, and maintain firebreaks and a
            fence under paragraph (2) and other requirements and
            conditions under paragraph (1), under the deed
            conveying the property to the County, covenants that
            run with the land for the benefit of land retained by
            the United States.
        (d) Reversionary Interest.--During the five-year period
    beginning on the date the Administrator makes the conveyance
    authorized by subsection (a), the real property conveyed
    pursuant to this section, at the option of the Administrator,
    shall revert to the United States and be placed under the
    administrative control of the Administrator, if--
                (1) the County sells, conveys, assigns, exchanges,
            or encumbers the property conveyed or any part thereof;
                (2) the County fails to maintain the property
            conveyed in a manner consistent with the terms and
            conditions in subsection (c);
                (3) the County conducts any commercial activities
            at the property conveyed, or any part thereof, without
            approval of the Secretary; or
                (4) at least 30 days before the reversion, the
            Administrator provides written notice to the owner that
            the property or any part thereof is needed for national
            security purposes.
        Sec. 1114. Conveyance of Coast Guard Property to Town of
    Nantucket, Massachusetts. (a) Authority to Convey.--
                (1) In general.--Notwithstanding any other law, the
            Administrator of the General Services Administration
            (Administrator) or the Commandant of the Coast Guard
            (Commandant), as appropriate, shall convey to the Town
            of Nantucket, Massachusetts (Town), without monetary
            consideration, all right, title, and interest of the
            United States of America (United States) in and to a
            certain parcel of land located in Nantucket,
            Massachusetts, and part of United States Coast Guard
            LORAN Station Nantucket, together with any improvements
            thereon in their then current condition.
                (2) Identification of property.--The Administrator
            or the Commandant, as appropriate, shall identify,
            describe, and determine the property to be conveyed
            under this section. The Town shall bear all monetary
            costs associated with any survey required to describe
            the property to be conveyed under this section and any
            easements reserved by the United States under
            subsection (b)(1).
        (b) Terms and Conditions of Conveyance.--
                (1) The conveyance of property under this section
            shall be made subject to any terms and conditions the
            Administrator or the Commandant, as appropriate,
            considers necessary, including the reservation of
            easements and other rights on behalf of the United
            States, to ensure that--
                        (A) there is reserved to the United States
                    the right to remove, relocate, or replace any
                    aid to navigation located upon, or install or
                    construct any aid to navigation upon, property
                    conveyed under this section as may be necessary
                    for navigational purposes;
                        (B) the United States shall have the right
                    to enter property conveyed under this section
                    at any time, without notice, for purposes of
                    operating, maintaining, and inspecting any aid
                    to navigation and for the purposes of
                    exercising any of the rights set forth in
                    paragraph (1)(A) of this subsection; and
                        (C) the Town shall not interfere or allow
                    interference, in any manner, with any aid to
                    navigation, whether located upon the property
                    conveyed under this section or upon any portion
                    of LORAN Station Nantucket retained by the
                    United States, nor hinder activities required
                    for the inspection, operation, and maintenance
                    of any such aid to navigation without the
                    Commandant's express written permission.
                (2) The Town shall not convey, assign, exchange, or
            in any way encumber the property conveyed under this
            section, unless approved by the Administrator.
                (3) The Town shall not conduct any commercial
            activities at or upon the property conveyed under this
            section, unless approved by the Administrator.
                (4) The Town shall not be required to maintain any
            active aid to navigation associated with the property
            conveyed under this section except for private aids to
            navigation permitted under 14 U.S.C. Sec.  83.
                (5) The United States shall not convey any property
            under this section, nor grant any real property license
            under subsection (d), until the Town enters into an
            agreement with the United States to relocate the Coast
            Guard receiving antenna and associated equipment, as
            identified by the Commandant, at the Town's sole cost
            and expense, and subject to the Commandant's design
            specifications, project schedule, and final project
            approval.
                (6) The United States shall not convey any property
            under this section, nor grant any real property license
            under subsection (d), until the Town enters into an
            agreement with the United States that provides that the
            Town will immediately cease construction or operation
            of the waste water treatment facility upon notification
            by the Commandant that the Town's construction or
            operation of the facility interferes with any Coast
            Guard aid to navigation. The agreement shall provide
            that construction or operation shall not be resumed
            until the conditions causing the interference are
            corrected, and the Commandant authorizes the
            construction or operation to resume.
                (7) All conditions placed with the deed of title
            shall be construed as covenants running with the land.
        (c) Reversionary Interest.--In addition to any term or
    condition established pursuant to this section, the conveyance
    of property under this section shall include a condition that
    the property conveyed, at the option of the Administrator,
    shall revert to the United States and be placed under the
    administrative control of the Administrator, if--
                (1) the Town conveys, assigns, exchanges, or in any
            manner encumbers the property conveyed for
            consideration, unless otherwise approved by the
            Administrator;
                (2) the Town conducts any commercial activities at
            or upon the property conveyed, unless otherwise
            approved by the Administrator;
                (3) the Town interferes or allows interference, in
            any manner, with any aid to navigation, whether located
            upon the property conveyed under this section or upon
            any portion of LORAN Station Nantucket retained by the
            United States, nor hinder activities required for the
            inspection, operation, and maintenance of any such aid
            to navigation without the Commandant's express written
            permission; or
                (4) at least 30 days before the reversion, the
            Administrator provides written notice to the grantee
            that property conveyed under this section, or any
            portion thereof, is needed for national security
            purposes.
        (d) Real Property License.--Prior to the conveyance of any
    property under this section, the Commandant may grant a real
    property license to the Town for the purpose of allowing the
    Town to enter upon LORAN Station Nantucket and commence
    construction of a waste water treatment facility and for other
    site preparation activities.
        (e) Definitions.--For purposes of this section:
                (1) Aid to navigation.--The term ``aid to
            navigation'' means equipment used for navigation
            purposes, including but not limited to, a light,
            antenna, sound signal, electronic and radio navigation
            equipment and signals, cameras, sensors, or other
            equipment operated or maintained by the United States.
                (2) Town.--The term ``Town'' includes the
            successors and assigns of the Town of Nantucket,
            Massachusetts.
        Sec. 1115. Conveyance of Plum Island Lighthouse,
    Newburyport, Massachusetts. (a) Authority to Convey.--
                (1) In general.--Notwithstanding any other law, the
            Administrator of the General Services Administration
            (Administrator) or the Commandant of the Coast Guard
            (Commandant), as appropriate, shall convey to the City
            of Newburyport, Massachusetts (City), without monetary
            consideration, all right, title, and interest of the
            United States of America (United States) in and to two
            certain parcels of land upon which the Plum Island Boat
            House and the Plum Island Lighthouse (also known as the
            Newburyport Harbor Light), are situated, respectively,
            located in Essex County, Massachusetts, together with
            any improvements thereon in their then current
            condition.
                (2) Identification of property.--The Administrator
            or the Commandant, as appropriate, shall identify,
            describe, and determine the property to be conveyed
            under this section, including the right to retain all
            right, title, and interest of the United States to any
            portion of either parcel described in paragraph (a)(1)
            of this section. The Administrator or Commandant, as
            appropriate, may retain all right, title, and interest
            of the United States in and to any historical artifact,
            including any lens or lantern, that is associated with
            and located at the property conveyed under this section
            at the time of conveyance. Artifacts associated with,
            but not located at, the property conveyed under this
            section at the time of conveyance, shall remain the
            personal property of the United States under the
            administrative control of the Commandant. No submerged
            lands shall be conveyed under this section.
        (b) Terms and Conditions of Conveyance.--
                (1) The conveyance of property under this section
            shall be made subject to any terms and conditions the
            Administrator or the Commandant, as appropriate,
            considers necessary, including but not limited to, the
            reservation of easements and other rights on behalf of
            the United States, to ensure that--
                        (A) the aids to navigation located at
                    property conveyed under this section shall
                    remain the personal property of the United
                    States and continue to be operated and
                    maintained by the United States for as long as
                    needed for navigational purposes;
                        (B) there is reserved to the United States
                    the right to remove, relocate, or replace any
                    aid to navigation located upon, or install or
                    construct any aid to navigation upon, property
                    conveyed under this section as may be necessary
                    for navigational purposes;
                        (C) the United States shall have the right
                    to enter property conveyed under this section
                    at any time, without notice, for purposes of
                    operating, maintaining, and inspecting any aid
                    to navigation, for the purposes of exercising
                    any of the rights set forth in paragraph (1)(B)
                    of this subsection, and for the purposes of
                    ingress and egress to any land retained by the
                    United States; and
                        (D) the City shall not, without the
                    Commandant's express written permission,
                    interfere or allow interference, in any manner,
                    with any aid to navigation, nor hinder
                    activities required
                                (i) for the inspection, operation,
                            and maintenance of any aid to
                            navigation; or
                                (ii) for the exercise of any of the
                            rights set forth in paragraph (1)(B) of
                            this subsection.
                (2) The City shall, at its own cost and expense,
            maintain the property conveyed under this section in a
            proper, substantial, and workmanlike manner.
                (3) The City shall ensure that the property
            conveyed is available and accessible to the public, on
            a reasonable basis for educational, park, recreational,
            cultural, historic preservation or similar purposes.
                (4) The City shall not be required to maintain any
            active aid to navigation associated with the property
            conveyed under this section except for private aids to
            navigation permitted under 14 U.S.C. Sec.  83.
                (5) All conditions placed with the deed of title
            for property conveyed under this section shall be
            construed as covenants running with the land.
                (6) The Administrator or the Commandant, as
            appropriate, may require such additional terms and
            conditions with respect to the conveyance of property
            under this section, as the Administrator or the
            Commandant considers appropriate to protect the
            interests of the United States.
        (c) Reversionary Interest.--In addition to any term or
    condition established pursuant to this section, any property
    conveyed under this section, at the option of the
    Administrator, shall revert to the United States and be placed
    under the administrative control of the Administrator, if--
                (1) the property conveyed under this section, or
            any part thereof, ceases to be maintained in a manner
            that ensures its present or future use as a site for an
            aid to navigation as determined by the Commandant;
                (2) the property conveyed under this section, or
            any part thereof, ceases to be available and accessible
            to the public, on a reasonable basis, for educational,
            park, recreational, cultural, historic preservation or
            similar purposes; or
                (3) at least 30 days before the reversion, the
            Administrator provides written notice to the grantee
            that property conveyed under this section, or any
            portion thereof, is needed for national security
            purposes.
        (d) Definitions.--For purposes of this section:
                (1) Aid to navigation.--The term ``aid to
            navigation'' means equipment used for navigation
            purposes, including but not limited to, a light,
            antenna, sound signal, electronic and radio navigation
            equipment and signals, cameras, sensors, or other
            equipment operated or maintained by the United States.
                (2) City.--The term ``City'' includes the
            successors and assigns of the City of Newburyport,
            Massachusetts.
        Sec. 1116. Transfer of Coast Guard Station Scituate to the
    National Oceanic and Atmospheric Administration. (a) Authority
    to Transfer.--
                (1) In general.--The Administrator of the General
            Services Administration, in consultation with the
            Commandant, United States Coast Guard, may transfer
            without consideration administrative jurisdiction,
            custody, and control over the Federal property known as
            Coast Guard Station Scituate to the National Oceanic
            and Atmospheric Administration (hereinafter referred to
            as ``NOAA'').
                (2) Identification of property.--The Administrator,
            in consultation with the Commandant, may identify,
            describe, and determine the property to be transferred
            under this section.
        (b) Terms of Transfer.--
                (1) The transfer of the property shall be made
            subject to any conditions and reservations the
            Commandant considers necessary to ensure that--
                        (A) the transfer of the property to NOAA is
                    contingent upon the relocation of Coast Guard
                    Station Scituate to a suitable site;
                        (B) there is reserved to the Coast Guard
                    the right to remove, relocate, or replace any
                    aid to navigation located upon, or install any
                    aid to navigation upon, the property
                    transferred under this section as may be
                    necessary for navigational purposes; and
                        (C) the Coast Guard shall have the right to
                    enter the property transferred under this
                    section at any time, without notice, for
                    purposes of operating, maintaining, and
                    inspecting any aid to navigation.
                (2) The transfer of the property shall be made
            subject to the review and acceptance of the property by
            NOAA.
        (c) Relocation of Station Scituate.--The Coast Guard may--
                (1) lease land, including unimproved or vacant
            land, for a term not to exceed 20 years, for the
            purpose of relocating Coast Guard Station Scituate; and
                (2) improve the land leased under this subsection.
        Sec. 1117. Extension of Interim Authority for Dry Bulk
    Cargo Residue Disposal. (a) Section 415(b)(2) of the Coast
    Guard Authorization Act of 1998 is amended by striking ``2002''
    and inserting ``2004''.
        (b) The Secretary shall conduct a study of the
    effectiveness of the United States 1997 Enforcement Policy for
    Cargo Residues on the Great Lakes (``Policy'') by September 30,
    2002.
        (c) The Secretary is authorized to promulgate regulations
    to implement and enforce a program to regulate incidental
    discharges from vessels of residues of non-hazardous and non-
    toxic dry bulk cargo into the waters of the Great Lakes, which
    takes into account the finding in the study required under
    subsection (b). This program shall be consistent with the
    Policy.
        Sec. 1118. Great Lakes Pilotage Advisory Committee. Section
    9307 of title 46, United States Code, is amended--
                (1) by amending subparagraph (A) of subsection
            (b)(2) to read as follows:
                        ``(A) The President of each of the 3 Great
                    Lakes pilotage districts, or the President's
                    representative;'';
                (2) by amending subparagraph (E) of subsection
            (b)(2) to read as follows:
                        ``(E) a member with a background in finance
                    or accounting, who--
                                ``(i) must have been recommended to
                            the Secretary by a unanimous vote of
                            the other members of the Committee, and
                                ``(ii) may be appointed without
                            regard to requirement in paragraph (1)
                            that each member have 5 years of
                            practical experience in maritime
                            operations.'';
                (3) in subsection (C)(2) by striking the second
            sentence;
                (4) by adding at the end of subsection (d) the
            following new paragraph:
                ``(3) Any recommendations to the Secretary under
            subsection (a)(2) must have been approved by at least
            all but one of the members then serving on the
            committee.''; and
                (5) in subsection (f)(1) by striking ``September
            30, 2003'' and inserting ``September 30, 2005''.
        Sec. 1119. Vessel Escort Operations and Towing Assistance.
    (a) In General.--Except in the case of a vessel in distress,
    only a vessel of the United States (as that term is defined in
    section 2101 of title 46, United States Code) may perform the
    following vessel escort operations and vessel towing assistance
    within the navigable waters of the United States:
                (1) Operations or assistance that commences or
            terminates at a port or place in the United States.
                (2) Operations or assistance required by United
            States law or regulation.
                (3) Operations provided in whole or in part for the
            purpose of escorting or assisting a vessel within or
            through navigation facilities owned, maintained, or
            operated by the United States Government or the
            approaches to such facilities, other than facilities
            operated by the St. Lawrence Seaway Development
            Corporation on the St. Lawrence River portion of the
            Seaway.
        (b) Definitions.--Unless otherwise defined by a provision
    of law or regulation requiring that towing assistance or escort
    be rendered to vessels transiting United States waters or
    navigation facilities, for purposes of this section--
                (1) the term ``towing assistance'' means operations
            by an assisting vessel in direct contact with an
            assisted vessel (including hull-to-hull, by towline,
            including if only pre-tethered, or made fast to that
            vessel by 1 or more lines) for purposes of exerting
            force on the assisted vessel to control or to assist in
            controlling the movement of the assisted vessel; and
                (2) the term ``escort operations'' means
            accompanying a vessel for the purpose of providing
            towing or towing assistance to the vessel.
        Sec. 1120. Notwithstanding any other provision of law, the
    Commandant of the United States Coast Guard is hereby
    authorized to utilize $100,000 of the amounts made available
    for fiscal year 2001 for environmental compliance and
    restoration of Coast Guard facilities to reimburse the owner of
    the former Coast Guard lighthouse facility at Cape May, New
    Jersey, for costs incurred for clean-up of lead contaminated
    soil at that facility.
        Sec. 1121. Notwithstanding any other provision of law,
    $2,400,000, to be derived from the Highway Trust Fund, shall be
    available for planning, development and construction of rural
    farm-to-market roads in Tulare County, California: Provided,
    That the non-federal share of such improvements shall be twenty
    percent.
        Sec. 1122. Notwithstanding any other provision of law, and
    subject to the availability of funds appropriated specifically
    for the project, the Coast Guard is authorized to transfer
    funds in an amount not to exceed $200,000 and project
    management authority to the Traverse City Area Public School
    District for the purposes of demolition and removal of the
    structure commonly known as ``Building 402'' at former Coast
    Guard property located in Traverse City, Michigan, and
    associated site work. No such funds shall be transferred until
    the Coast Guard receives a detailed, fixed price estimate from
    the School District describing the nature and cost of the work
    to be performed, and the Coast Guard shall transfer only that
    amount of funds it and the School District consider necessary
    to complete the project.
        Sec. 1123. Notwithstanding any other provision of law, for
    necessary expenses for Alabama A&M University buses and bus
    facilities, $500,000, to be derived from the Mass Transit
    Account of the Highway Trust Fund and to remain available until
    expended.
        Sec. 1124. Notwithstanding any other provision of law,
    prior to the fiscal year 2002 apportionment of ``Fixed Guideway
    Modernization'' funds authorized under section 5309(a)(1)(E) of
    Title 49, United States Code, $7,047,502 of funds made
    available in fiscal year 2002 by section 5338(b) of 49 United
    States Code for the ``Fixed Guideway Modernization'' program
    shall be distributed by the Federal Transit Administration to
    an urbanized area over 200,000 that did not receive amounts of
    fixed guideway modernization formula grants to which such area
    was lawfully entitled for fiscal years 1999-2001 in view of
    eligibility determinations made under 49 United States Code
    Chapter 53 during the six months prior to the effective date of
    this act: Provided, That such sums shall not reduce a grantee's
    fiscal year 2002 apportionment level of ``Fixed Guideway
    Modernization'' funds: Provided further, That such sum remain
    available until expended.
        Sec. 1125. Notwithstanding any other provision of law,
    Airport Improvement Program Formula Changes provided in Public
    Law 106-181 and defined in Section 104 of that Act shall be
    applied regardless of funding levels made available under
    Section 48103 of title 49, United States Code.
        Sec. 1126. Item number 473 contained in section 1602 of the
    Transportation Equity Act for the 21st Century (112 Stat. 274),
    relating to Minnesota, is amended by striking ``between I-35W
    and 24th Avenue to four lanes in Richfield'' and inserting
    ``reconstruction project from Penn Avenue to 24th Avenue,
    including the Penn Avenue Bridge over I-494''.
        Sec. 1127. The Secretary of Transportation shall not issue
    final regulations under section 20153 of title 49, United
    States Code, before July 1, 2001.
        Sec. 1128. Notwithstanding any other provision of law, in
    addition to amounts made available in this Act or any other
    Act, the following sums shall be made available from the
    Highway Trust Fund (other than the Mass Transit Account):
                $1,700,000 for transportation and community
            preservation projects along the Main Street Corridor in
            Houston, Texas;
                $5,000,000 for rehabilitation, repair, and
            restoration of the historic Stillwater Lift Bridge
            between Stillwater, Minnesota and Houlton, Wisconsin;
                $1,000,000 for improvements to McClung Road, Boston
            Street, Larson Street and Whirlpool Drive in the City
            of LaPorte, Indiana; and
                $1,000,000 for design, environmental mitigation,
            engineering, and construction of, and improvements to,
            the US 36/Wadsworth interchange (Broomfield
            interchange) in Broomfield County, Colorado:
    Provided, That the amounts appropriated in this section shall
    remain available until expended and shall not be subject to, or
    computed against, any obligation limitation or contract
    authority set forth in this or any other Act.

                                   CHAPTER 12

                        GENERAL SERVICES ADMINISTRATION

                            Real Property Activities

                             federal buildings fund

          For an additional amount to be deposited in, and to be
    used for the purposes of, the Federal Buildings Fund of the
    General Services Administration, $2,070,000: Provided, That
    this amount shall be available for the purpose of renovating
    and redeveloping portions of the historic Federal building
    located at 30 North Seventh Street in Terre Haute, Indiana, to
    accommodate the needs of Federal tenants: Provided further,
    That use of these funds is subject to authorization including
    the preparation and approval of a prospectus as required by the
    Public Buildings Act of 1959, as amended.

                           DEPARTMENT OF THE TREASURY

                         United States Customs Service

     operations, maintenance and procurement, air and marine interdiction
                                    programs

        For an additional amount of $7,000,000, to remain available
    until expended, for necessary expenses associated with
    procurement of two aircraft and related equipment expenses
    associated with aviation standardization and training at the
    Customs National Aviation Center in Oklahoma City, Oklahoma:
    Provided, That none of the funds provided shall be available
    for obligation until an expenditure plan is submitted for
    approval to the Committees on Appropriations.

                                   CHAPTER 13

                         DEPARTMENT OF VETERANS AFFAIRS

                          Departmental Administration

                          construction, minor projects

          For an additional amount for ``Construction, minor
    projects'', $8,840,000, to remain available until expended.

                  DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

                       Community Planning and Development

                    empowerment zones/enterprise communities

          For an additional amount for ``Empowerment zones and
    enterprise communities'', $110,000,000, to remain available
    until expended: Provided, That $185,000,000 shall be available
    for urban empowerment zones, as authorized by the Taxpayer
    Relief Act of 1997, including $12,333,333 for each empowerment
    zone.

                           community development fund

          For an additional amount for ``Community development
    fund'', $66,128,000 to remain available until September 30,
    2003.
          The referenced statement of the managers in the seventh
    undesignated paragraph under this heading in title II of the
    Departments of Veterans Affairs and Housing and Urban
    Development, and Independent Agencies Appropriations Act, 2001
    (Public Law 106-377) is deemed to be amended by striking ``West
    Dallas neighborhoods'' in reference to improvement efforts by
    the Pleasant Wood/Pleasant Grove Community Development
    Corporation, and inserting ``the Pleasant Grove area'' in lieu
    thereof.
          The unobligated amount appropriated in the third
    paragraph under the heading ``Community development block
    grants'' in Chapter 8 of title II of the Emergency Supplemental
    Act, 2000 (Public Law 106-246) for a grant to the City of
    Hamlet, North Carolina for demolition and removal of buildings
    and equipment destroyed by fire shall remain available until
    September 30, 2002 for a grant for such purpose to the County
    of Richmond, North Carolina.
          The seventh paragraph under this heading in title II of
    Public Law 106-377 is amended by striking ``$292,000,000'' and
    inserting in lieu thereof $358,128,000'': Provided, That such
    funds shall be available for grants for the Economic
    Development Initiative (EDI) to finance a variety of targeted
    economic investments in accordance with the terms and
    conditions specified in the statement of managers accompanying
    this conference report.

                           DEPARTMENT OF THE TREASURY

                  Community Development Financial Institutions

                  community development financial institutions

                              fund program account

          Under this heading in Public Law 106-377, strike
    ``$8,750,000 may be used for administrative expenses,'', and
    insert ``$9,750,000 may be used for administrative expenses,
    including administration of the New Markets Tax Credit and
    Individual Development Accounts,''.

                        Environmental Protection Agency

                             science and technology

          For an additional amount for ``Science and technology'',
    $1,000,000 for continuation of the South Bronx Air Pollution
    Study being conducted by New York University.

                     environmental programs and management

          The statement of the managers under this heading in title
    III of the Departments of Veterans Affairs and Housing and
    Urban Development, and Independent Agencies Appropriations Act,
    2001 (Public Law 106-377) is deemed to be amended by inserting
    the word ``Valley'' after the words ``San Bernardino'' in
    reference to a project identified as number 104 in such
    statement of the managers.

                       state and tribal assistance grants

          Grants appropriated under this heading in Public Law 106-
    74 and Public Law 106-377 for drinking water infrastructure
    needs in the New York City watershed shall be awarded under
    section 1443(d) of the Safe Drinking Water Act, as amended.
          The referenced statement of the managers under this
    heading in Public Law 106-377 is deemed to be amended by
    striking all after the words ``City of Liberty'' in reference
    to item number 78, and inserting the words ``Town of
    Versailles, Indiana for wastewater infrastructure
    improvements''.
          Under this heading in title III of Public Law 106-377,
    strike ``$335,740,000'' and insert ``$356,370,000'': Provided,
    That such funds shall be for making grants for the construction
    of wastewater and water treatment facilities and groundwater
    protection infrastructure in accordance with the terms and
    conditions specified for such grants in the statement of
    managers accompanying Public Law 106-377 and this conference
    report.

                      Federal Emergency Management Agency

                  emergency management planning and assistance

          For an additional amount for ``Emergency management
    planning and assistance'', $100,000,000, to remain available
    through September 30, 2001, for programs as authorized by
    section 33 of the Federal Fire Prevention and Control Act of
    1974 (15 U.S.C. 2201 et seq.), as amended.

                                   CHAPTER 14

                       General Provisions--This Division

          Sec. 1401. H. Con. Res. 234 of the 106th Congress, as
    adopted by the House of Representatives on November 18, 1999,
    shall be considered to have been adopted by the Senate.
          Sec. 1402. Section 3003(a)(1) of the Federal Reports
    Elimination and Sunset Act of 1995 (31 U.S.C. 1113 note) does
    not apply to any report required to be submitted under any of
    the following provisions of law:
                (1) Sections 1105(a), 1106(a) and (b), and 1109(a)
            of title 31, United States Code, and any other law
            relating to the budget of the United States Government.
                (2) The Balanced Budget and Emergency Deficit
            Control Act of 1985 (2 U.S.C. 900 et seq.).
                (3) Sections 202(e)(1) and (3) of the Congressional
            Budget Act of 1974 (2 U.S.C. 602(e)(1) and (3)).
                (4) Section 1014(e) of the Congressional Budget and
            Impoundment Control Act of 1974 (2 U.S.C. 685(e)).
        Sec. 1403. (a) Government-Wide Rescissions.--There is
    hereby rescinded an amount equal to 0.22 percent of the
    discretionary budget authority provided (or obligation limit
    imposed) for fiscal year 2001 in this or any other Act for each
    department, agency, instrumentality, or entity of the Federal
    Government, except for those programs, projects, and activities
    which are specifically exempted elsewhere in this provision:
    Provided, That this exact reduction percentage shall be applied
    on a pro rata basis only to each program, project, and activity
    subject to the rescission.
        (b) Restrictions.--This reduction shall not be applied to
    the amounts appropriated in Title I of Public Law 106-259:
    Provided, That this reduction shall not be applied to the
    amounts appropriated in Division B of Public Law 106-246:
    Provided further, That this reduction shall not be applied to
    the amounts appropriated under the Departments of Labor, Health
    and Human Services, and Education, and Related Agencies
    Appropriations Act, 2001, as contained in this Act, or in prior
    Acts.
        (c) Report.--The Director of the Office of Management and
    Budget shall include in the President's budget submitted for
    fiscal year 2002 a report specifying the reductions made to
    each account pursuant to this section.

                                   DIVISION B

                                    TITLE I

        Sec. 101. Eligibility of Private Organizations Under Child
    and Adult Care Food Program. (a) Section 17(a)(2)(B) of the
    Richard B. Russell National School Lunch Act (42 U.S.C.
    1766(a)(2)(B)) is amended by striking ``children for which
    the'' and inserting ``children, if--
                                ``(i) during the period beginning
                            on the date of enactment of this clause
                            and ending on September 30, 2001, at
                            least 25 percent of the children served
                            by the organization meet the income
                            eligibility criteria established under
                            section 9(b) for free or reduced price
                            meals; or
                                ``(ii) the''.
        (b) Emergency Requirement.--
                (1) In general.--The entire amount necessary to
            carry out this section shall be available only to the
            extent that an official budget request for the entire
            amount, that includes designation of the entire amount
            of the request as an emergency requirement as defined
            in the Balanced Budget and Emergency Deficit Control
            Act of 1985, as amended, is transmitted by the
            President to the Congress.
                (2) Designation.--The entire amount necessary to
            carry out this section is designated by the Congress as
            an emergency requirement pursuant to section
            251(b)(2)(A) of such Act.
        Sec. 102. Summer Food Pilot Projects. (a) Section 18 of the
    Richard B. Russell National School Lunch Act (42 U.S.C. 1769)
    is amended by adding at the end the following:
        ``(f) Summer Food Pilot Projects.--
                ``(1) Definition of eligible state.--In this
            subsection, the term `eligible State' means a State in
            which (based on data available in July 2000)--
                        ``(A) the percentage obtained by dividing--
                                ``(i) the sum of--
                                        ``(I) the average daily
                                    number of children attending
                                    the summer food service program
                                    in the State in July 1999; and
                                        ``(II) the average daily
                                    number of children receiving
                                    free or reduced price meals
                                    under the school lunch program
                                    in the State in July 1999; by
                                ``(ii) the average daily number of
                            children receiving free or reduced
                            price meals under the school lunch
                            program in the State in March 1999; is
                            less than 50 percent of
                        ``(B) the percentage obtained by dividing--
                                ``(i) the sum of--
                                        ``(I) the average daily
                                    number of children attending
                                    the summer food service program
                                    in all States in July 1999; and
                                        ``(II) the average daily
                                    number of children receiving
                                    free or reduced price meals
                                    under the school lunch program
                                    in all States in July 1999; by
                                ``(ii) the average daily number of
                            children receiving free or reduced
                            price meals under the school lunch
                            program in all States in March 1999.
                ``(2) Pilot projects.--During the period of fiscal
            years 2001 through 2003, the Secretary shall carry out
            a summer food pilot project in each eligible State to
            increase the number of children participating in the
            summer food service program in the State.
                ``(3) Support levels for service institutions.--
                        ``(A) Food service.--Under the pilot
                    project, a service institution (other than a
                    service institution described in section
                    13(a)(7)) in an eligible State shall receive
                    the maximum amounts for food service under
                    section 13(b)(1) without regard to the
                    requirement under section 13(b)(1)(A) that
                    payments shall equal the full cost of food
                    service operations.
                        ``(B) Administrative costs.--Under the
                    pilot project, a service institution (other
                    than a service institution described in section
                    13(a)(7)) in an eligible State shall receive
                    the maximum amounts for administrative costs
                    determined by the Secretary under section
                    13(b)(4) without regard to the requirement
                    under section 13(b)(3) that payments to service
                    institutions shall equal the full amount of
                    State-approved administrative costs incurred.
                        ``(C) Compliance.--A service institution
                    that receives assistance under this subsection
                    shall comply with all provisions of section 13
                    other than subsections (b)(1)(A) and (b)(3) of
                    section 13.
                ``(4) Maintenance of effort.--Expenditures of funds
            from State and local sources for maintenance of a
            summer food service program shall not be diminished as
            a result of assistance from the Secretary received
            under this subsection.
                ``(5) Evaluation of pilot projects.--
                        ``(A) In general.--The Secretary, acting
                    through the Administrator of the Food and
                    Nutrition Service, shall conduct an evaluation
                    of the pilot project.
                        ``(B) Content.--An evaluation under this
                    paragraph shall describe--
                                ``(i) any effect on participation
                            by children and service institutions in
                            the summer food service program in the
                            eligible State in which the pilot
                            project is carried out;
                                ``(ii) any effect of the pilot
                            project on the quality of the meals and
                            supplements served in the eligible
                            State in which the pilot project is
                            carried out; and
                                ``(iii) any effect of the pilot
                            project on program integrity.
                ``(6) Reports.--
                        ``(A) Interim report.--Not later than
                    December 1, 2002, the Secretary shall submit to
                    the Committee on Education and the Workforce of
                    the House of Representatives and the Committee
                    on Agriculture, Nutrition, and Forestry of the
                    Senate an interim report that describes the
                    status of, and any progress made by, each pilot
                    project being carried out under this subsection
                    as of the date of submission of the report.
                        ``(B) Final report.--Not later than April
                    30, 2004, the Secretary shall submit to the
                    Committee on Education and the Workforce of the
                    House of Representatives and the Committee on
                    Agriculture, Nutrition, and Forestry of the
                    Senate a final report that includes--
                                ``(i) the evaluations completed by
                            the Secretary under paragraph (5); and
                                ``(ii) any recommendations of the
                            Secretary concerning the pilot
                            projects.''.
        (b) Emergency Requirement.--
                (1) In general.--The entire amount necessary to
            carry out this section shall be available only to the
            extent that an official budget request for the entire
            amount, that includes designation of the entire amount
            of the request as an emergency requirement as defined
            in the Balanced Budget and Emergency Deficit Control
            Act of 1985, as amended, is transmitted by the
            President to the Congress.
                (2) Designation.--The entire amount necessary to
            carry out this section is designated by the Congress as
            an emergency requirement pursuant to section
            251(b)(2)(A) of such Act.
        Sec. 103. (a) In General.--The Secretary of the Interior
    shall conduct a feasibility study for a Sacramento River,
    California, diversion project that is consistent with the Water
    Forum Agreement among the members of the Sacramento,
    California, Water Forum dated April 24, 2000, and that
    considers--
                (1) consolidation of several of the Natomas Central
            Mutual Water Company's diversions;
                (2) upgrading fish screens at the consolidated
            diversion;
                (3) the diversion of 35,000 acre feet of water by
            the Placer County Water Agency;
                (4) the diversion of 29,000 acre feet of water for
            delivery to the Northridge Water District;
                (5) the potential to accommodate other diversions
            of water from the Sacramento River, subject to
            additional negotiations and agreement among Water Forum
            signatories and potentially affected parties upstream
            on the Sacramento River; and
                (6) an inter-tie between the diversions referred to
            in paragraphs (3), (4), and (5) with the Northridge
            Water District's pipeline that delivers water from the
            American River.
        (b) Required Components.--The feasibility study shall
    include--
                (1) the development of a range of reasonable
            options;
                (2) an environmental evaluation; and
                (3) consultation with Federal and State resource
            management agencies regarding potential impacts and
            mitigation measures.
        (c) Water Supply Impact Alternatives.--The study authorized
    by this section shall include a range of alternatives, all of
    which would investigate options that could reduce to
    insignificance any water supply impact on water users in the
    Sacramento River watershed, including Central Valley Project
    contractors, from any delivery of water out of the Sacramento
    River as referenced in subsection (a). In evaluating the
    alternatives, the study shall consider water supply
    alternatives that would increase water supply for, or in, the
    Sacramento River watershed. The study should be coordinated
    with the CALFED program and take advantage of information
    already developed within that program to investigate water
    supply increase alternatives. Where the alternatives evaluated
    are in addition to or different from the existing CALFED
    alternatives, such information should be clearly identified.
        (d) Habitat Management Planning Grants.--The Secretary of
    the Interior, subject to the availability of appropriations, is
    authorized and directed to provide grants to support local
    habitat management planning efforts undertaken as part of the
    consultation described in subsection (b)(3) in the form of
    matching funds up to $5,000,000.
        (e) Report.--The Secretary of the Interior shall provide a
    report to the Committee on Resources of the United States House
    of Representatives and to the Committee on Energy and Natural
    Resources of the United States Senate within twenty-four months
    from the date of enactment of this Act on the results of the
    study identified in subsection (a).
        (f) Authorization of Appropriations.--There is authorized
    to be appropriated to the Secretary of the Interior to carry
    out this section $10,000,000, which may remain available until
    expended, of which--
                (1) $5,000,000 shall be for the feasibility study
            under subsection (a); and
                (2) $5,000,000 shall be for the habitat management
            planning grants under subsection (d).
        (g) Limitation on Construction.--This section does not and
    shall not be interpreted to authorize construction of any
    facilities.
        Sec. 104. Ten- and Fifteen-Mile Bayous, Arkansas. The
    project for flood control, Saint Francis River Basin, Missouri
    and Arkansas, authorized by section 204 of the Flood Control
    Act of 1950 (64 Stat. 172), is modified to expand the
    boundaries of the project to include Ten- and Fifteen-Mile
    Bayous near West Memphis, Arkansas. Notwithstanding section
    103(f) of the Water Resources Development Act of 1986 (100
    Stat. 4086), the flood control work at Ten- and Fifteen-Mile
    Bayous shall not be considered separable elements of the
    project.
        Sec. 105. In accordance with section 102(l) of the Water
    Resources Development Act of 1990 (104 Stat. 4613), the
    Secretary of the Army, acting through the Chief of Engineers,
    is authorized and directed to enter into an agreement to permit
    the City of Alton, Illinois to construct the authorized
    recreational facilities and to reimburse the City of Alton,
    Illinois for the Federal share of these cost-shared recreation
    facilities as usable segments are completed.
        Sec. 106. Truckee Watershed Reclamation Project. (a)
    Authorization.--The Secretary of the Interior, in cooperation
    with Washoe County, Nevada, may participate in the design,
    planning, and construction of the Truckee watershed reclamation
    project, consisting of the North Valley reuse project and the
    Spanish Springs Valley septic conversion project, to reclaim
    and reuse wastewater (including degraded groundwater) within
    and without the service area of Washoe County, Nevada.
        (b) Cost Share.--The Federal share of the cost of the
    project described in subsection (a) shall not exceed 25 percent
    of the total cost of the project.
        (c) Limitation.--Funds provided by the Secretary shall not
    be used for the operation or maintenance of the project
    described in subsection (a).
        (d) Reclamation Wastewater and Groundwater Study and
    Facilities Act.--
                (1) Design, planning, and construction.--Design,
            planning, and construction of the project described in
            subsection (a) shall be in accordance with, and subject
            to the limitations contained in, the Reclamation
            Wastewater and Groundwater Study and Facilities Act (43
            U.S.C. 390h et seq.).
                (2) Funding.--Funds made available under section
            1631 of the Reclamation Wastewater and Groundwater
            Study and Facilities Act (43 U.S.C. 390h-13) may be
            used to pay the Federal share of the cost of the
            project.
        Sec. 107. The project for navigation, Tampa Harbor,
    Florida, authorized by section 4 of the Rivers and Harbors Act
    of September 22, 1922 (42 Stat. 1042), is modified to authorize
    the Secretary of the Army to deepen and widen the Alafia
    Channel in accordance with the plans described in the Draft
    Feasibility Report, Alafia River, Tampa Harbor, Florida, dated
    May 2000, at a total cost of $61,592,000, with an estimated
    Federal cost of $39,621,000 and an estimated non-Federal cost
    of $21,971,000.
        Sec. 108. Environmental Infrastructure. (a) Technical,
    Planning, and Design Assistance.--Section 219(c) of the Water
    Resources Development Act of 1992 (106 Stat. 4835) is amended
    by adding at the end the following:
                ``(19)  Marana, arizona.--Wastewater treatment and
            distribution infrastructure, Marana, Arizona.
                ``(20) Eastern arkansas enterprise community,
            arkansas.--Water-related infrastructure, Eastern
            Arkansas Enterprise Community, Cross, Lee, Monroe, and
            St. Francis Counties, Arkansas.
                ``(21) Chino hills, california.--Storm water and
            sewage collection infrastructure, Chino Hills,
            California.
                ``(22) Clear lake basin, california.--Water-related
            infrastructure and resource protection, Clear Lake
            Basin, California.
                ``(23) Desert hot springs, california.--Resource
            protection and wastewater infrastructure, Desert Hot
            Springs, California.
                ``(24) Eastern municipal water district,
            california.--Regional water-related infrastructure,
            Eastern Municipal Water District, California.
                ``(25) Huntington beach, california.--Water supply
            and wastewater infrastructure, Huntington Beach,
            California.
                ``(26) Inglewood, california.--Water
            infrastructure, Inglewood, California.
                ``(27) Los osos community service district,
            california.--Wastewater infrastructure, Los Osos
            Community Service District, California.
                ``(28) Norwalk, california.--Water-related
            infrastructure, Norwalk, California.
                ``(29) Key biscayne, florida.--Sanitary sewer
            infrastructure, Key Biscayne, Florida.
                ``(30) South tampa, florida.--Water supply and
            aquifer storage and recovery infrastructure, South
            Tampa, Florida.
                ``(31) Fort wayne, indiana.--Combined sewer
            overflow infrastructure and wetlands protection, Fort
            Wayne, Indiana.
                ``(32) Indianapolis, indiana.--Combined sewer
            overflow infrastructure, Indianapolis, Indiana.
                ``(33) St. charles, st. bernard, and plaquemines
            parishes, louisiana.--Water and wastewater
            infrastructure, St. Charles, St. Bernard, and
            Plaquemines Parishes, Louisiana.
                ``(34) St. john the baptist and st. james parishes,
            louisiana.--Water and sewer improvements, St. John the
            Baptist and St. James Parishes, Louisiana.
                ``(35) Union county, north carolina.--Water
            infrastructure, Union County, North Carolina.
                ``(36) Hood river, oregon.--Water transmission
            infrastructure, Hood River, Oregon.
                ``(37) Medford, oregon.--Sewer collection
            infrastructure, Medford, Oregon.
                ``(38) Portland, oregon.--Water infrastructure and
            resource protection, Portland, Oregon.
                ``(39) Coudersport, pennsylvania.--Sewer system
            extensions and improvements, Coudersport, Pennsylvania.
                ``(40) Park city, utah.--Water supply
            infrastructure, Park City, Utah.
        (b) Authorization of Appropriations for Technical,
    Planning, and Design Assistance.--Section 219(d) of the Water
    Resources Development Act of 1992 (106 Stat. 4836) is amended
    by striking ``$5,000,000'' and inserting ``$30,000,000''.
        (c) Modification of Authorizations for Environmental
    Projects.--Section 219 of the Water Resources Development Act
    of 1992 (106 Stat. 4835; 106 Stat. 3757; 113 Stat. 334) is
    amended--
                (1) in subsection (e)(6) by striking
            ``$20,000,000'' and inserting ``$30,000,000'';
                (2) in subsection (f)(4) by striking
            ``$15,000,000'' and inserting ``$35,000,000'';
                (3) in subsection (f)(21) by striking
            ``$10,000,000'' and inserting ``$20,000,000'';
                (4) in subsection (f)(25) by striking
            ``$5,000,000'' and inserting ``$15,000,000'';
                (5) in subsection (f)(30) by striking
            ``$10,000,000'' and inserting ``$20,000,000'';
                (6) in subsection (f)(43) by striking
            ``$15,000,000'' and inserting ``$35,000,000''.
        (d) Additional Assistance for Critical Resource Projects.--
    Section 219(f) of the Water Resources Development Act of 1992
    (106 Stat. 4835; 113 Stat. 335) is amended by adding at the end
    the following:
                ``(45) Washington, d.c., and maryland.--$15,000,000
            for the project described in subsection (c)(1),
            modified to include measures to eliminate or control
            combined sewer overflows in the Anacostia River
            watershed.
                ``(46) Duck river, cullman, alabama.--$5,000,000
            for water supply infrastructure, Duck River, Cullman,
            Alabama.
                ``(47) Union county, arkansas.--$52,000,000 for
            water supply infrastructure, including facilities for
            withdrawal, treatment, and distribution, Union County,
            Arkansas.
                ``(48) Cambria, california.--$10,300,000 for
            desalination infrastructure, Cambria, California.
                ``(49) Los angeles harbor/terminal island,
            california.--$6,500,000 for wastewater recycling
            infrastructure, Los Angeles Harbor/Terminal Island,
            California.
                ``(50) North valley region, lancaster,
            california.--$14,500,000 for water infrastructure,
            North Valley Region, Lancaster, California.
                ``(51) San diego county, california.--$10,000,000
            for water-related infrastructure, San Diego County,
            California.
                ``(52) South perris, california.--$25,000,000 for
            water supply desalination infrastructure, South Perris,
            California.
                ``(53) Aurora, illinois.--$8,000,000 for wastewater
            infrastructure to reduce or eliminate combined sewer
            overflows, Aurora, Illinois.
                ``(54) Cook county, illinois.--$35,000,000 for
            water-related infrastructure and resource protection
            and development, Cook County, Illinois.
                ``(55) Madison and st. clair counties, illinois.--
            $10,000,000 for water and wastewater assistance,
            Madison and St. Clair Counties, Illinois.
                ``(56) Iberia parish, louisiana.--$5,000,000 for
            water and wastewater infrastructure, Iberia Parish,
            Louisiana.
                ``(57) Kenner, louisiana.--$5,000,000 for
            wastewater infrastructure, Kenner, Louisiana.
                ``(58) Benton harbor, michigan.--$1,500,000 for
            water related infrastructure, City of Benton Harbor,
            Michigan.
                ``(59) Genesee county, michigan.--$6,700,000 for
            wastewater infrastructure assistance to reduce or
            eliminate sewer overflows, Genessee County, Michigan.
                ``(60) Negaunee, michigan.--$10,000,000 for
            wastewater infrastructure assistance, City of Negaunee,
            Michigan.
                ``(61) Garrison and kathio township, minnesota.--
            $11,000,000 for a wastewater infrastructure project for
            the city of Garrison and Kathio Township, Minnesota.
                ``(62) Newton, new jersey.--$7,000,000 for water
            filtration infrastructure, Newton, New Jersey.
                ``(63) Liverpool, new york.--$2,000,000 for water
            infrastructure, including a pump station, Liverpool,
            New York.
                ``(64) Stanly county, north carolina.--$8,900,000
            for wastewater infrastructure, Stanly County, North
            Carolina.
                ``(65) Yukon, oklahoma.--$5,500,000 for water-
            related infrastructure, including wells, booster
            stations, storage tanks, and transmission lines, Yukon,
            Oklahoma.
                ``(66) Allegheny county, pennsylvania.--$20,000,000
            for water-related environmental infrastructure,
            Allegheny County, Pennsylvania.
                ``(67) Mount joy township and conewago township,
            pennsylvania.--$8,300,000 for water and wastewater
            infrastructure, Mount Joy Township and Conewago
            Township, Pennsylvania.
                ``(68) Phoenixville borough, chester county,
            pennsylvania.--$2,400,000 for water and sewer
            infrastructure, Phoenixville Borough, Chester County,
            Pennsylvania.
                ``(69) Titusville, pennsylvania.--$7,300,000 for
            storm water separation and treatment plant upgrades,
            Titusville, Pennsylvania.
                ``(70) Washington, greene, westmoreland, and
            fayette counties, pennsylvania.--$8,000,000 for water
            and wastewater infrastructure, Washington, Greene,
            Westmoreland, and Fayette Counties, Pennsylvania.''.
        Sec. 109. Florida Keys Water Quality Improvements. (a) In
    General.--In coordination with the Florida Keys Aqueduct
    Authority, appropriate agencies of municipalities of Monroe
    County, Florida, and other appropriate public agencies of the
    State of Florida or Monroe County, the Secretary of the Army
    may provide technical and financial assistance to carry out
    projects for the planning, design, and construction of
    treatment works to improve water quality in the Florida Keys
    National Marine Sanctuary.
        (b) Criteria for Projects.--Before entering into a
    cooperation agreement to provide assistance with respect to a
    project under this section, the Secretary shall ensure that--
                (1) the non-Federal sponsor has completed adequate
            planning and design activities, as applicable;
                (2) the non-Federal sponsor has completed a
            financial plan identifying sources of non-Federal
            funding for the project;
                (3) the project complies with--
                        (A) applicable growth management ordinances
                    of Monroe County, Florida;
                        (B) applicable agreements between Monroe
                    County, Florida, and the State of Florida to
                    manage growth in Monroe County, Florida; and
                        (C) applicable water quality standards; and
                (4) the project is consistent with the master
            wastewater and stormwater plans for Monroe County,
            Florida.
        (c) Consideration.--In selecting projects under subsection
    (a), the Secretary shall consider whether a project will have
    substantial water quality benefits relative to other projects
    under consideration.
        (d) Consultation.--In carrying out this section, the
    Secretary shall consult with--
                (1) the Water Quality Steering Committee
            established under section 8(d)(2)(A) of the Florida
            Keys National Marine Sanctuary and Protection Act (106
            Stat. 5054);
                (2) the South Florida Ecosystem Restoration Task
            Force established by section 528(f) of the Water
            Resources Development Act of 1996 (110 Stat. 3771-
            3773);
                (3) the Commission on the Everglades established by
            executive order of the Governor of the State of
            Florida; and
                (4) other appropriate State and local government
            officials.
        (e) Non-Federal Share.--
                (1) In general.--The non-Federal share of the cost
            of a project carried out under this section shall be 35
            percent.
                (2) Credit.--
                        (A) In general.--The Secretary may provide
                    the non-Federal interest credit toward cash
                    contributions required--
                                (i) before and during the
                            construction of the project, for the
                            costs of planning, engineering, and
                            design, and for the construction
                            management work that is performed by
                            the non-Federal interest and that the
                            Secretary determines is necessary to
                            implement the project; and
                                (ii) during the construction of the
                            project, for the construction that the
                            non-Federal interest carries out on
                            behalf of the Secretary and that the
                            Secretary determines is necessary to
                            carry out the project.
                        (B) Treatment of credit between projects.--
                    Any credit provided under this paragraph may be
                    carried over between authorized projects.
        (f) Authorization of Appropriations.--There is authorized
    to be appropriated to carry out this section $100,000,000. Such
    sums shall remain available until expended.
        Sec. 110. San Gabriel Basin, California. (a) San Gabriel
    Basin Restoration.--
                (1) Establishment of fund.--There shall be
            established within the Treasury of the United States an
            interest bearing account to be known as the San Gabriel
            Basin Restoration Fund (in this section referred to as
            the ``Restoration Fund'').
                (2) Administration of fund.--The Restoration Fund
            shall be administered by the Secretary of the Army, in
            cooperation with the San Gabriel Basin Water Quality
            Authority or its successor agency.
                (3) Purposes of fund.--
                        (A) In general.--Subject to subparagraph
                    (B), the amounts in the Restoration Fund,
                    including interest accrued, shall be utilized
                    by the Secretary--
                                (i) to design and construct water
                            quality projects to be administered by
                            the San Gabriel Basin Water Quality
                            Authority and the Central Basin Water
                            Quality Project to be administered by
                            the Central Basin Municipal Water
                            District; and
                                (ii) to operate and maintain any
                            project constructed under this section
                            for such period as the Secretary
                            determines, but not to exceed 10 years,
                            following the initial date of operation
                            of the project.
                        (B) Cost-sharing limitation.--
                                (i) In general.--The Secretary may
                            not obligate any funds appropriated to
                            the Restoration Fund in a fiscal year
                            until the Secretary has deposited in
                            the Fund an amount provided by non-
                            Federal interests sufficient to ensure
                            that at least 35 percent of any funds
                            obligated by the Secretary are from
                            funds provided to the Secretary by the
                            non-Federal interests.
                                (ii) Non-federal responsibility.--
                            The San Gabriel Basin Water Quality
                            Authority shall be responsible for
                            providing the non-Federal amount
                            required by clause (i). The State of
                            California, local government agencies,
                            and private entities may provide all or
                            any portion of such amount.
        (b) Compliance With Applicable Law.--In carrying out the
    activities described in this section, the Secretary shall
    comply with any applicable Federal and State laws.
        (c) Relationship to Other Activities.--Nothing in this
    section shall be construed to affect other Federal or State
    authorities that are being used or may be used to facilitate
    the cleanup and protection of the San Gabriel and Central
    groundwater basins. In carrying out the activities described in
    this section, the Secretary shall integrate such activities
    with ongoing Federal and State projects and activities. None of
    the funds made available for such activities pursuant to this
    section shall be counted against any Federal authorization
    ceiling established for any previously authorized Federal
    projects or activities.
        (d) Authorization of Appropriations.--
                (1) In general.--There is authorized to be
            appropriated to the Restoration Fund established under
            subsection (a) $85,000,000. Such funds shall remain
            available until expended.
                (2) Set-aside.--Of the amounts appropriated under
            paragraph (1), no more than $10,000,000 shall be
            available to carry out the Central Basin Water Quality
            Project.
        (e) Adjustment.--Of the $25,000,000 made available for San
    Gabriel Basin Groundwater Restoration, California, under the
    heading ``Construction, General'' in title I of the Energy and
    Water Development Appropriations Act, 2001--
                (1) $2,000,000 shall be available only for studies
            and other investigative activities and planning and
            design of projects determined by the Secretary to offer
            a long-term solution to the problem of groundwater
            contamination caused by perchlorates at sites located
            in the city of Santa Clarita, California; and
                (2) $23,000,000 shall be deposited in the
            Restoration Fund, of which $4,000,000 shall be used for
            remediation in the Central Basin, California.
        Sec. 111. Perchlorate. (a) In General.--The Secretary of
    the Army, in cooperation with Federal, State, and local
    government agencies, may participate in studies and other
    investigative activities and in the planning and design of
    projects determined by the Secretary to offer a long-term
    solution to the problem of groundwater contamination caused by
    perchlorates.
        (b) Investigations and Projects.--
                (1) Bosque and leon rivers.--The Secretary, in
            coordination with other Federal agencies and the Brazos
            River Authority, shall participate under subsection (a)
            in investigations and projects in the Bosque and Leon
            River watersheds in Texas to assess the impact of the
            perchlorate associated with the former Naval ``Weapons
            Industrial Reserve Plant'' at McGregor, Texas.
                (2) Caddo lake.--The Secretary, in coordination
            with other Federal agencies and the Northeast Texas
            Municipal Water District, shall participate under
            subsection (a) in investigations and projects relating
            to perchlorate contamination in Caddo Lake, Texas.
                (3) Eastern santa clara basin.--The Secretary, in
            coordination with other Federal, State, and local
            government agencies, shall participate under subsection
            (a) in investigations and projects related to sites
            that are sources of perchlorates and that are located
            in the city of Santa Clarita, California.
        (c) Authorization of Appropriations.--For the purposes of
    carrying out this section, there is authorized to be
    appropriated to the Secretary $25,000,000, of which not to
    exceed $8,000,000 shall be available to carry out subsection
    (b)(1), not to exceed $3,000,000 shall be available to carry
    out subsection (b)(2), and not to exceed $7,000,000 shall be
    available to carry out subsection (b)(3).
        Sec. 112. Wet Weather Water Quality. (a) Combined Sewer
    Overflows.--Section 402 of the Federal Water Pollution Control
    Act (33 U.S.C. 1342) is amended by adding at the end the
    following:
        ``(q) Combined Sewer Overflows.--
                ``(1) Requirement for permits, orders, and
            decrees.--Each permit, order, or decree issued pursuant
            to this Act after the date of enactment of this
            subsection for a discharge from a municipal combined
            storm and sanitary sewer shall conform to the Combined
            Sewer Overflow Control Policy signed by the
            Administrator on April 11, 1994 (in this subsection
            referred to as the `CSO control policy').
                ``(2) Water quality and designated use review
            guidance.--Not later than July 31, 2001, and after
            providing notice and opportunity for public comment,
            the Administrator shall issue guidance to facilitate
            the conduct of water quality and designated use reviews
            for municipal combined sewer overflow receiving waters.
                ``(3) Report.--Not later than September 1, 2001,
            the Administrator shall transmit to Congress a report
            on the progress made by the Environmental Protection
            Agency, States, and municipalities in implementing and
            enforcing the CSO control policy.''.
        (b) Wet Weather Pilot Program.--Title I of the Federal
    Water Pollution Control Act (33 U.S.C. 1251 et seq.) is amended
    by adding at the end the following:

    ``SEC. 121. WET WEATHER WATERSHED PILOT PROJECTS.

        ``(a) In General.--The Administrator, in coordination with
    the States, may provide technical assistance and grants for
    treatment works to carry out pilot projects relating to the
    following areas of wet weather discharge control:
                ``(1) Watershed management of wet weather
            discharges.--The management of municipal combined sewer
            overflows, sanitary sewer overflows, and stormwater
            discharges, on an integrated watershed or subwatershed
            basis for the purpose of demonstrating the
            effectiveness of a unified wet weather approach.
                ``(2) Stormwater best management practices.--The
            control of pollutants from municipal separate storm
            sewer systems for the purpose of demonstrating and
            determining controls that are cost-effective and that
            use innovative technologies in reducing such pollutants
            from stormwater discharges.
        ``(b) Administration.--The Administrator, in coordination
    with the States, shall provide municipalities participating in
    a pilot project under this section the ability to engage in
    innovative practices, including the ability to unify separate
    wet weather control efforts under a single permit.
        ``(c) Funding.--
                ``(1) In general.--There is authorized to be
            appropriated to carry out this section $10,000,000 for
            fiscal year 2002, $15,000,000 for fiscal year 2003, and
            $20,000,000 for fiscal year 2004. Such funds shall
            remain available until expended.
                ``(2) Stormwater.--The Administrator shall make
            available not less than 20 percent of amounts
            appropriated for a fiscal year pursuant to this
            subsection to carry out the purposes of subsection
            (a)(2).
                ``(3) Administrative expenses.--The Administrator
            may retain not to exceed 4 percent of any amounts
            appropriated for a fiscal year pursuant to this
            subsection for the reasonable and necessary costs of
            administering this section.
        ``(d) Report to Congress.--Not later than 5 years after the
    date of enactment of this section, the Administrator shall
    transmit to Congress a report on the results of the pilot
    projects conducted under this section and their possible
    application nationwide.''.
        (c) Sewer Overflow Control Grants.--Title II of the Federal
    Water Pollution Control Act (33 U.S.C. 1342 et seq.) is amended
    by adding at the end the following:

    ``SEC. 221. SEWER OVERFLOW CONTROL GRANTS.

        ``(a) In General.--In any fiscal year in which the
    Administrator has available for obligation at least
    $1,350,000,000 for the purposes of section 601--
                ``(1) the Administrator may make grants to States
            for the purpose of providing grants to a municipality
            or municipal entity for planning, design, and
            construction of treatment works to intercept,
            transport, control, or treat municipal combined sewer
            overflows and sanitary sewer overflows; and
                ``(2) subject to subsection (g), the Administrator
            may make a direct grant to a municipality or municipal
            entity for the purposes described in paragraph (1).
        ``(b) Prioritization.--In selecting from among
    municipalities applying for grants under subsection (a), a
    State or the Administrator shall give priority to an applicant
    that--
                ``(1) is a municipality that is a financially
            distressed community under subsection (c);
                ``(2) has implemented or is complying with an
            implementation schedule for the 9 minimum controls
            specified in the CSO control policy referred to in
            section 402(q)(1) and has begun implementing a long-
            term municipal combined sewer overflow control plan or
            a separate sanitary sewer overflow control plan; or
                ``(3) is requesting a grant for a project that is
            on a State's intended use plan pursuant to section
            606(c); or
                ``(4) is an Alaska Native Village.
        ``(c) Financially Distressed Community.--
                ``(1) Definition.--In subsection (b), the term
            `financially distressed community' means a community
            that meets affordability criteria established by the
            State in which the community is located, if such
            criteria are developed after public review and comment.
                ``(2) Consideration of impact on water and sewer
            rates.--In determining if a community is a distressed
            community for the purposes of subsection (b), the State
            shall consider, among other factors, the extent to
            which the rate of growth of a community's tax base has
            been historically slow such that implementing a plan
            described in subsection (b)(2) would result in a
            significant increase in any water or sewer rate charged
            by the community's publicly owned wastewater treatment
            facility.
                ``(3) Information to assist states.--The
            Administrator may publish information to assist States
            in establishing affordability criteria under paragraph
            (1).
        ``(d) Cost Sharing.--The Federal share of the cost of
    activities carried out using amounts from a grant made under
    subsection (a) shall be not less than 55 percent of the cost.
    The non-Federal share of the cost may include, in any amount,
    public and private funds and in-kind services, and may include,
    notwithstanding section 603(h), financial assistance, including
    loans, from a State water pollution control revolving fund.
        ``(e) Administrative Reporting Requirements.--If a project
    receives grant assistance under subsection (a) and loan
    assistance from a State water pollution control revolving fund
    and the loan assistance is for 15 percent or more of the cost
    of the project, the project may be administered in accordance
    with State water pollution control revolving fund
    administrative reporting requirements for the purposes of
    streamlining such requirements.
        ``(f) Authorization of Appropriations.--There is authorized
    to be appropriated to carry out this section $750,000,000 for
    each of fiscal years 2002 and 2003. Such sums shall remain
    available until expended.
        ``(g) Allocation of Funds.--
                ``(1) Fiscal year 2002.--Subject to subsection (h),
            the Administrator shall use the amounts appropriated to
            carry out this section for fiscal year 2002 for making
            grants to municipalities and municipal entities under
            subsection (a)(2), in accordance with the criteria set
            forth in subsection (b).
                ``(2) Fiscal year 2003.--Subject to subsection (h),
            the Administrator shall use the amounts appropriated to
            carry out this section for fiscal year 2003 as follows:
                        ``(A) Not to exceed $250,000,000 for making
                    grants to municipalities and municipal entities
                    under subsection (a)(2), in accordance with the
                    criteria set forth in subsection (b).
                        ``(B) All remaining amounts for making
                    grants to States under subsection (a)(1), in
                    accordance with a formula to be established by
                    the Administrator, after providing notice and
                    an opportunity for public comment, that
                    allocates to each State a proportional share of
                    such amounts based on the total needs of the
                    State for municipal combined sewer overflow
                    controls and sanitary sewer overflow controls
                    identified in the most recent survey conducted
                    pursuant to section 516(b)(1).
        ``(h) Administrative Expenses.--Of the amounts appropriated
    to carry out this section for each fiscal year--
                ``(1) the Administrator may retain an amount not to
            exceed 1 percent for the reasonable and necessary costs
            of administering this section; and
                ``(2) the Administrator, or a State, may retain an
            amount not to exceed 4 percent of any grant made to a
            municipality or municipal entity under subsection (a),
            for the reasonable and necessary costs of administering
            the grant.
        ``(i) Reports.--Not later than December 31, 2003, and
    periodically thereafter, the Administrator shall transmit to
    Congress a report containing recommended funding levels for
    grants under this section. The recommended funding levels shall
    be sufficient to ensure the continued expeditious
    implementation of municipal combined sewer overflow and
    sanitary sewer overflow controls nationwide.''.
        (d) Information on CSOS and SSOS.--
                (1) Report to congress.--Not later than 3 years
            after the date of enactment of this Act, the
            Administrator of the Environmental Protection Agency
            shall transmit to Congress a report summarizing--
                        (A) the extent of the human health and
                    environmental impacts caused by municipal
                    combined sewer overflows and sanitary sewer
                    overflows, including the location of discharges
                    causing such impacts, the volume of pollutants
                    discharged, and the constituents discharged;
                        (B) the resources spent by municipalities
                    to address these impacts; and
                        (C) an evaluation of the technologies used
                    by municipalities to address these impacts.
                (2) Technology clearinghouse.--After transmitting a
            report under paragraph (1), the Administrator shall
            maintain a clearinghouse of cost-effective and
            efficient technologies for addressing human health and
            environmental impacts due to municipal combined sewer
            overflows and sanitary sewer overflows.
        Sec. 113. Fish Passage Devices at New Savannah Bluff Lock
    and Dam, South Carolina. Section 348(l)(2) of the Water
    Resources Development Act of 2000 is amended--
                (1) in subparagraph (A), by striking ``Dam, at
            Federal expense of an estimated $5,300,000'' and
            inserting ``Dam and construct appropriate fish passage
            devices at the Dam, at Federal expense''; and
                (2) in subparagraph (B), by striking ``after repair
            and rehabilitation,'' and inserting ``after carrying
            out subparagraph (A),''.
        Sec. 114. (a) Extinguishment of Reversionary Interests and
    Use Restrictions.--With respect to the lands described in the
    deed described in subsection (b)--
                (1) the reversionary interests and the use
            restrictions relating to port or industrial purposes
            are extinguished;
                (2) the human habitation or other building
            structure use restriction is extinguished in each area
            where the elevation is above the standard project flood
            elevation; and
                (3) the use of fill material to raise areas above
            the standard project flood elevation, without
            increasing the risk of flooding in or outside of the
            floodplain, is authorized, except in any area
            constituting wetland for which a permit under section
            404 of the Federal Water Pollution Control Act (33
            U.S.C. 1344) would be required.
        (b) Affected Deed.--The deed referred to is the deed
    recorded October 17, 1967, in book 291, page 148, Deed of
    Records of Umatilla County, Oregon, executed by the United
    States.
        Sec. 115. Murrieta Creek, California. Section 101(b)(6) of
    the Water Resources Development Act of 2000 is repealed.
        Sec. 116. Penn Mine, Calaveras County, California. (a) In
    General.--The Secretary of the Army shall reimburse East Bay
    Municipal Water District for the project for aquatic ecosystem
    restoration, Penn Mine, Calaveras County, California, carried
    out under section 206 of the Water Resources Development Act of
    1996 (33 U.S.C. 2330), $4,100,000 for the Federal share of
    costs incurred by East Bay Municipal Utility District for work
    carried out by East Bay Municipal Utility District for the
    project. Such amounts shall be made available within 90 days of
    enactment of this provision.
        (b) Source of Funding.--Reimbursement under subsection (a)
    shall be from amounts appropriated before the date of enactment
    of this Act for the project described in subsection (a).
        Sec. 117. The project for flood control, Greers Ferry Lake,
    Arkansas, authorized by the Rivers and Harbors Act of June 28,
    1938 (52 Stat. 1218), is modified to authorize the Secretary of
    the Army to construct intake facilities for the benefit of
    Lonoke and White Counties, Arkansas.
        Sec. 118. The project for flood control, Chehalis River and
    Tributaries, Washington, authorized by section 401(a) of the
    Water Resources Development Act of 1986 (100 Stat. 4126), is
    modified to authorize the Secretary of the Army to provide the
    non-Federal interest credit toward the non-Federal share of the
    cost of the project the cost of planning, design, and
    construction work carried out by the non-Federal interest
    before the date of execution of a cooperation agreement for the
    project if the Secretary determines that the work is integral
    to the project.
        Sec. 119. Within the funds appropriated to the National
    Park Service under the heading ``Operation of the National Park
    System'' in Public Law 106-291, the Secretary of the Interior
    shall provide a grant of $75,000 to the City of Ocean Beach,
    New York, for repair of facilities at the Ocean Beach Pavilion
    at Fire Island National Seashore.
          Sec. 120. The National Park Service is directed to work
    with Fort Sumter Tours, Inc., the concessionaire currently
    providing services at Fort Sumter National Monument in South
    Carolina, on an amicable solution of the current legal dispute
    between the two parties. The Director of the Service is
    directed to extend immediately the current contract through
    March 15, 2001, to facilitate further negotiations and for 180
    days if final settlement of all disputes is agreed to by both
    parties.
        Sec. 121. Title VIII--Land Conservation, Preservation and
    Infrastructure Improvement of Public Law 106-291 is amended as
    follows: after the first dollar amount insert: ``, to be
    derived from the Land and Water Conservation Fund''.
        Sec. 122. Gas to Liquids. Section 301(2) of the Energy
    Policy Act of 1992 (Public Law 102-486; 42 U.S.C. 13211(2)) is
    amended by inserting ``, including liquid fuels domestically
    produced from natural gas'' after ``natural gas''.
        Sec. 123. (a) The provisions of H.R. 4904 as passed in the
    House of Representatives on September 26, 2000 are hereby
    enacted into law.
        Sec. 124. Appalachian National Scenic Trail. (a)
    Acquisitions.--
                (1) In general.--The Secretary of the Interior
            shall--
                        (A) negotiate agreements with landowners
                    setting terms and conditions for the
                    acquisition of parcels of land and interests in
                    land totalling approximately 580 acres at
                    Saddleback Mountain near Rangeley, Maine, for
                    the benefit of the Appalachian National Scenic
                    Trail;
                        (B) complete the pending environmental
                    compliance process for the acquisitions; and
                        (C) acquire the parcels of land and
                    interests in land for consideration in the
                    amount of $4,000,000 plus closing costs
                    customarily paid by the United States.
                (2) Acceptance of donations.--The Secretary may
            accept as donations parcels of land and interests in
            land at Saddleback Mountain, in addition to those
            acquired by purchase under paragraph (1), for the
            benefit of the Appalachian National Scenic Trail.
        (b) Conveyance to the State.--The Secretary shall convey to
    the State of Maine a portion of the land and interests in land
    acquired under subsection (a) without consideration, subject to
    such terms and conditions as the Secretary and the State of
    Maine agree are necessary to ensure the protection of the
    Appalachian National Scenic Trail.
        Sec. 125. The provisions of S. 2273, as passed in the
    United States Senate on October 5, 2000 and engrossed, are
    hereby enacted into law.
        Sec. 126. Section 116(a)(1)(A) of the Illinois and Michigan
    Canal National Heritage Corridor Act of 1984 (98 Stat. 1467) is
    amended by striking ``$250,000'' and inserting ``$1,000,000''.
        Sec. 127. The provisions of S. 2885, as passed in the
    United States Senate on October 5, 2000 and engrossed, are
    hereby enacted into law.
        Sec. 128. None of the funds provided in this or any other
    Act may be used prior to July 31, 2001 to promulgate or enforce
    a final rule to reduce during the 2000-2001 or 2001-2002 winter
    seasons the use of snowmobiles below current use patterns at a
    unit in the National Park System: Provided, That nothing in
    this section shall be interpreted as amending any requirement
    of the Clean Air Act: Provided further, That nothing in this
    section shall preclude the Secretary from taking emergency
    actions related to snowmobile use in any National Park based on
    authorities which existed to permit such emergency actions as
    of the date of enactment of this Act.
        Sec. 129. The Secretary of the Interior shall extend until
    March 31, 2001 the ``Extension of Standstill Agreement,''
    entered into on November 22, 1999 by the United States of
    America and the holders of interests in seven campsite leases
    in Biscayne Bay, Miami-Dade County, Florida collectively known
    as ``Stiltsville''.
        Sec. 130. The Secretary of the Interior is authorized to
    make a grant of $1,300,000 to the State of Minnesota or its
    political subdivision from funds available to the National Park
    Service under the heading ``Land Acquisition and State
    Assistance'' in Public Law 106-291 to cover the cost of
    acquisition of land in Lower Phalen Creek near St. Paul,
    Minnesota in the Mississippi National River and Recreation
    Area.
        Sec. 131. Notwithstanding any provision of law or
    regulation, funds appropriated in Public Law 106-291 for a
    cooperative agreement for management of George Washington's
    Boyhood Home, Ferry Farm, shall be transferred to the George
    Washington's Fredericksburg Foundation, Inc. (formerly known as
    Kenmore Association, Inc.) immediately upon signing of the
    cooperative agreement.
        Sec. 132. During the period beginning on the date of the
    enactment of this Act and ending on June 1, 2001, funds made
    available to the Secretary of the Interior may not be used to
    pay salaries or expenses related to the issuance of a request
    for proposal related to a light rail system to service Grand
    Canyon National Park.
        Sec. 133. None of the funds in this or any other Act may be
    used by the Secretary of the Interior to remove the five foot
    tall white cross located within the boundary of the Mojave
    National Preserve in southern California first erected in 1934
    by the Veterans of Foreign Wars along Cima Road approximately
    11 miles south of Interstate 15.
        Sec. 134. Section 6(g) of the Chesapeake and Ohio Canal
    Development Act (16 U.S.C. 410y-4(g)) is amended by striking
    ``thirty'' and inserting ``40''.
        Sec. 135. Funds provided in Public Law 106-291 for federal
    land acquisition by the National Park Service in Fiscal Year
    2001 for Brandywine Battlefield, Ice Age National Scenic Trail,
    Mississippi National River and Recreation Area, Shenandoah
    National Heritage Area, Fallen Timbers Battlefield and Fort
    Miamis National Historic Site may be used for a grant to a
    state, local government, or to a land management entity for the
    acquisition of lands without regard to any restriction on the
    use of federal land acquisition funds provided through the Land
    and Water Conservation Act of 1965.
        Sec. 136. Notwithstanding any other provision of law, in
    accordance with Title IV--Wildland Fire Emergency
    Appropriations, Public Law 106-291, from the $35,000,000
    provided for community and private land fire assistance, the
    Secretary of Agriculture, may use up to $9,000,000 for advance,
    direct lump sum payments for assistance to eligible
    individuals, businesses, or other entities, to accomplish the
    purposes of providing assistance to non-federal entities most
    affected by fire. To expedite such financial assistance being
    provided to eligible recipients, the lump sum payments shall
    not be subject to CFR Title 7 Sec. 3015; Title 7 Sec. 3019;
    Title 7 Sec. 3052 related to the administration of Federal
    financial assistance.
        Sec. 137. (a) In General.--The first section of Public Law
    91-660 (16 U.S.C. 459h) is amended--
                (1) in the first sentence, by striking ``That, in''
            and inserting the following:

    ``SECTION 1. GULF ISLANDS NATIONAL SEASHORE.

        ``(a) Establishment.--In''; and
                (2) in the second sentence--
                        (A) by redesignating paragraphs (1) through
                    (6) as subparagraphs (A) through (F),
                    respectively, and indenting appropriately;
                        (B) by striking ``The seashore shall
                    comprise'' and inserting the following:
        ``(b) Composition.--
                ``(1) In general.--The seashore shall comprise the
            areas described in paragraphs (2) and (3).
                ``(2) Areas included in boundary plan numbered ns-
            gi-7100j.--The areas described in this paragraph are'':
            and
                        (C) by adding at the end the following:
                ``(3) Cat island.--Upon its acquisition by the
            Secretary, the area described in this paragraph is the
            parcel consisting of approximately 2,000 acres of land
            on Cat Island, Mississippi, as generally depicted on
            the map entitled `Boundary Map, Gulf Islands National
            Seashore, Cat Island, Mississippi', numbered 635/80085,
            and dated November 9, 1999 (referred to in this title
            as the `Cat Island Map').
                ``(4) Availability of map.--The Cat Island Map
            shall be on file and available for public inspection in
            the appropriate offices of the National Park
            Service.''.
        (b) Acquisition Authority.--Section 2 of Public Law 91-660
    (16 U.S.C. 459h-1) is amended--
                (1) in the first sentence of subsection (a), by
            striking ``lands,'' and inserting ``submerged land,
            land,''; and
                (2) by adding at the end the following:
        ``(e) Acquisition Authority.--
                ``(1) In general.--The Secretary may acquire, from
            a willing seller only--
                        ``(A) all land comprising the parcel
                    described in subsection (b)(3) that is above
                    the mean line of ordinary high tide, lying and
                    being situated in Harrison County, Mississippi;
                        ``(B) an easement over the approximately
                    150-acre parcel depicted as the `Boddie Family
                    Tract' on the Cat Island Map for the purpose of
                    implementing an agreement with the owners of
                    the parcel concerning the development and use
                    of the parcel; and
                        ``(C)(i) land and interests in land on Cat
                    Island outside the 2,000-acre area depicted on
                    the Cat Island Map; and
                        ``(ii) submerged land that lies within 1
                    mile seaward of Cat Island (referred to in this
                    title as the `buffer zone'), except that
                    submerged land owned by the State of
                    Mississippi (or a subdivision of the State) may
                    be acquired only by donation.
                ``(2) Administration.--
                        ``(A) In general.--Land and interests in
                    land acquired under this subsection shall be
                    administered by the Secretary, acting through
                    the Director of the National Park Service.
                        ``(B) Buffer zone.--Nothing in this title
                    or any other provision of law shall require the
                    State of Mississippi to convey to the Secretary
                    any right, title, or interest in or to the
                    buffer zone as a condition for the
                    establishment of the buffer zone.
                ``(3) Modification of boundary.--The boundary of
            the seashore shall be modified to reflect the
            acquisition of land under this subsection only after
            completion of the acquisition.''.
        (c) Regulation of Fishing.--Section 3 of Public Law 91-660
    (16 U.S.C. 459h-2) is amended--
                (1) by inserting ``(a) In General.--'' before ``The
            Secretary''; and
                (2) by adding at the end the following:
        ``(b) No Authority To Regulate Maritime Activities.--
    Nothing in this title or any other provision of law shall
    affect any right of the State of Mississippi, or give the
    Secretary any authority, to regulate maritime activities,
    including nonseashore fishing activities (including shrimping),
    in any area that, on the date of enactment of this subsection,
    is outside the designated boundary of the seashore (including
    the buffer zone).''.
        (d) Authorization of Management Agreements.--Section 5 of
    Public Law 91-660 (16 U.S.C. 459h-4) is amended--
                (1) by inserting ``(a) In General.--'' before
            ``Except''; and
                (2) by adding at the end the following:
        ``(b) Agreements.--
                ``(1) In general.--The Secretary may enter into
            agreements--
                        ``(A) with the State of Mississippi for the
                    purposes of managing resources and providing
                    law enforcement assistance, subject to
                    authorization by State law, and emergency
                    services on or within any land on Cat Island
                    and any water and submerged land within the
                    buffer zone; and
                        ``(B) with the owners of the approximately
                    150-acre parcel depicted as the `Boddie Family
                    Tract' on the Cat Island Map concerning the
                    development and use of the land.
                ``(2) No authority to enforce certain
            regulations.--Nothing in this subsection authorizes the
            Secretary to enforce Federal regulations outside the
            land area within the designated boundary of the
            seashore.''.
        (e) Authorization of Appropriations.--Section 11 of Public
    Law 91-660 (16 U.S.C. 459h-10) is amended--
                (1) by inserting ``(a) In General.--'' before
            ``There''; and
                (2) by adding at the end the following:
        ``(b) Authorization for Acquisition of Land.--In addition
    to the funds authorized by subsection (a), there are authorized
    to be appropriated such sums as are necessary to acquire land
    and submerged land on and adjacent to Cat Island,
    Mississippi.''.
        Sec. 138. Percentage Limitations on Federal Thrift Savings
    Plan Contributions. (a) Amendments Relating to FERS.--
                (1) In general.--Subsection (a) of section 8432 of
            title 5, United States Code, is amended--
                        (A) by striking ``(a)'' and inserting
                    ``(a)(1)'';
                        (B) by striking ``10 percent'' and all that
                    follows through ``period.'' and inserting ``the
                    maximum percentage of such employee's or
                    Member's basic pay for such pay period
                    allowable under paragraph (2).''; and
                        (C) by adding at the end the following:
        ``(2) The maximum percentage allowable under this paragraph
    shall be determined in accordance with the following table:

    ``In the case of a pay period beginnThe maximum percentage allowable is:
        2001..........................................................   11
        2002..........................................................   12
        2003..........................................................   13
        2004..........................................................   14
        2005..........................................................   15
        2006 or thereafter...........................................100.''.

                (2) Justices and judges.--Paragraph (2) of section
            8440a(b) of title 5, United States Code, is amended to
            read as follows:
        ``(2) The amount contributed by a justice or judge for any
    pay period shall not exceed the maximum percentage of such
    justice's or judge's basic pay for such pay period allowable
    under section 8440f.''.
                (3) Bankruptcy judges and magistrates.--Paragraph
            (2) of section 8440b(b) of title 5, United States Code,
            is amended by striking ``5 percent'' and all that
            follows through ``period.'' and inserting ``the maximum
            percentage of such bankruptcy judge's or magistrate's
            basic pay for such pay period allowable under section
            8440f.''.
                (4) Court of federal claims judges.--Paragraph (2)
            of section 8440c(b) of title 5, United States Code, is
            amended by striking ``5 percent'' and all that follows
            through ``period.'' and inserting ``the maximum
            percentage of such judge's basic pay for such pay
            period allowable under section 8440f.''.
                (5) Judges of the united states court of appeals
            for veterans claims.--The first sentence of section
            8440d(b)(2) of title 5, United States Code, is amended
            to read as follows: ``The amount contributed by a judge
            of the United States Court of Appeals for Veterans
            Claims for any pay period may not exceed the maximum
            percentage of such judge's basic pay for such pay
            period allowable under section 8440f.''.
                (6) Members of the uniformed services.--
                        (A) Basic pay.--Subparagraph (A) of section
                    8440e(d)(1) of title 5, United States Code, is
                    amended by striking ``5 percent'' and all that
                    follows through ``period.'' and inserting ``the
                    maximum percentage of such member's basic pay
                    for such pay period allowable under section
                    8440f.''.
                        (B) Compensation.--Subparagraph (B) of
                    section 8440e(d)(1) of title 5, United States
                    Code, is amended by striking ``5 percent'' and
                    all that follows through ``period.'' and
                    inserting ``the maximum percentage of such
                    member's compensation for such pay period
                    (received under such section 206) allowable
                    under section 8440f.''.
                (7) Maximum percentage allowable.--
                        (A) In general.--Title 5, United States
                    Code, is amended by inserting after section
                    8440e the following:

    ``Sec. 8440f. Maximum percentage allowable for certain participants

        ``The maximum percentage allowable under this section shall
    be determined in accordance with the following table:

    ``In the case of a pay period beginnThe maximum percentage allowable is:
        2001..........................................................    6
        2002..........................................................    7
        2003..........................................................    8
        2004..........................................................    9
        2005..........................................................   10
        2006 or thereafter...........................................100.''.

                        (B) Conforming amendment.--The table of
                    sections for chapter 84 of title 5, United
                    States Code, is amended by inserting after the
                    item relating to section 8440e the following:

    ``8440f. Maximum percentage allowable for certain participants.''.

        (b) Amendments Relating to CSRS.--Paragraph (2) of section
    8351(b) of title 5, United States Code, is amended--
                (1) by striking ``(2)'' and inserting ``(2)(A)'';
                (2) by striking ``5 percent'' and all that follows
            through ``period.'' and inserting ``the maximum
            percentage of such employee's or Member's basic pay for
            such pay period allowable under subparagraph (B).'';
            and
                (3) by adding at the end the following:
        ``(B) The maximum percentage allowable under this
    subparagraph shall be determined in accordance with the
    following table:

    ``In the case of a pay period beginnThe maximum percentage allowable is:
        2001..........................................................    6
        2002..........................................................    7
        2003..........................................................    8
        2004..........................................................    9
        2005..........................................................   10
        2006 or thereafter...........................................100.''.

        (c) Effective Date.--
                (1) In general.--The amendments made by this
            section shall take effect on the date of enactment of
            this Act.
                (2) Coordination with election periods.--The
            Executive Director shall by regulation determine the
            first election period in which elections may be made
            consistent with the amendments made by this section.
                (3) Definitions.--For purposes of this section--
                        (A) the term ``election period'' means a
                    period afforded under section 8432(b) of title
                    5, United States Code; and
                        (B) the term ``Executive Director'' has the
                    meaning given such term by section 8401(13) of
                    title 5, United States Code.
        Sec. 139. Exclusion of Elements of United States Secret
    Service From Certain Activities. Section 7103(a)(3) of title 5,
    United States Code, is amended--
                (1) in subparagraph (F), by striking ``or'' at the
            end;
                (2) in subparagraph (G), by striking the period and
            inserting ``; or''; and
                (3) by adding at the end the following new
            subparagraph:
                        ``(H) the United States Secret Service and
                    the United States Secret Service Uniformed
                    Division.''.
        Sec. 140. (a) The adjustment in rates of basic pay for the
    statutory pay systems that takes effect in fiscal year 2001
    under sections 5303 and 5304 of title 5, United States Code,
    shall be an increase of 3.7 percent.
        (b) Funds used to carry out this section shall be paid from
    appropriations which are made to each applicable department or
    agency for salaries and expenses for fiscal year 2001.
        Sec. 141. Repeal of Mandatory Separation Requirement. (a)
    In General.--Section 8335 of title 5, United States Code, is
    amended--
                (1) by striking subsection (c); and
                (2) by redesignating subsections (d) and (e) as
            subsections (c) and (d), respectively.
        (b) Technical and Conforming Amendment.--Section 8339(q) of
    title 5, United States Code, is amended by striking ``8335(d)''
    and inserting ``8335(c)''.
        Sec. 142. Section 223(a)(14) of the Juvenile Justice and
    Delinquency Prevention Act of 1974 (42 U.S.C. 5633(a)(14) as
    amended, is hereby amended by inserting after the phrase
    ``twenty-four hours'' the following new phrase: ``(except in
    the case of Alaska where such time limit may be forty-eight
    hours in fiscal years 2000 through 2002)''.
        Sec. 143. (a) Section 336 of the Communications Act of 1934
    (47 U.S.C. 336) is amended--
                (1) by redesignating subsection (h) as subsection
            (i); and
                (2) by inserting after subsection (g) the
            following:
        ``(h)(1) Within 60 days after receiving a request (made in
    such form and manner and containing such information as the
    Commission may require) under this subsection from a low-power
    television station to which this subsection applies, the
    Commission shall authorize the licensee or permittee of that
    station to provide digital data service subject to the
    requirements of this subsection as a pilot project to
    demonstrate the feasibility of using low-power television
    stations to provide high-speed wireless digital data service,
    including Internet access to unserved areas.
                ``(2) The low-power television stations to which
            this subsection applies are as follows:
                        ``(A) KHLM-LP, Houston, Texas.
                        ``(B) WTAM-LP, Tampa, Florida.
                        ``(C) WWRJ-LP, Jacksonville, Florida.
                        ``(D) WVBG-LP, Albany, New York.
                        ``(E) KHHI-LP, Honolulu, Hawaii.
                        ``(F) KPHE-LP (K19DD), Phoenix, Arizona.
                        ``(G) K34FI, Bozeman, Montana.
                        ``(H) K65GZ, Bozeman, Montana.
                        ``(I) WXOB-LP, Richmond, Virginia.
                        ``(J) WIIW-LP, Nashville, Tennessee.
                        ``(K) A station and repeaters to be
                    determined by the Federal Communications
                    Commission for the sole purpose of providing
                    service to communities in the Kenai Peninsula
                    Borough and Matanuska Susitna Borough.
                        ``(L) WSPY-LP, Plano, Illinois.
                        ``(M) W24AJ, Aurora, Illinois.
                ``(3) Notwithstanding any requirement of section
            553 of title 5, United States Code, the Commission
            shall promulgate regulations establishing the
            procedures, consistent with the requirements of
            paragraphs (4) and (5), governing the pilot projects
            for the provision of digital data services by certain
            low power television licensees within 120 days after
            the date of enactment of LPTV Digital Data Services
            Act. The regulations shall set forth--
                        ``(A) requirements as to the form, manner,
                    and information required for submitting
                    requests to the Commission to provide digital
                    data service as a pilot project;
                        ``(B) procedures for testing interference
                    to digital television receivers caused by any
                    pilot project station or remote transmitter;
                        ``(C) procedures for terminating any pilot
                    project station or remote transmitter or both
                    that causes interference to any analog or
                    digital full-power television stations, class A
                    television station, television translators or
                    any other users of the core television band;
                        ``(D) specifications for reports to be
                    filed quarterly by each low power television
                    licensee participating in a pilot project;
                        ``(E) procedures by which a low power
                    television licensee participating in a pilot
                    project shall notify television broadcast
                    stations in the same market upon commencement
                    of digital data services and for ongoing
                    coordination with local broadcasters during the
                    test period; and
                        ``(F) procedures for the receipt and review
                    of interference complaints on an expedited
                    basis consistent with paragraph (5)(D).
                ``(4) A low-power television station to which this
            subsection applies may not provide digital data service
            unless--
                        ``(A) the provision of that service,
                    including any remote return-path transmission
                    in the case of 2-way digital data service, does
                    not cause any interference in violation of the
                    Commission's existing rules, regarding
                    interference caused by low power television
                    stations to full-service analog or digital
                    television stations, class A television
                    stations, or television translator stations;
                    and
                        ``(B) the station complies with the
                    Commission's regulations governing safety,
                    environmental, and sound engineering practices,
                    and any other Commission regulation under
                    paragraph (3) governing pilot program
                    operations.
                ``(5)(A) The Commission may limit the provision of
            digital data service by a low-power television station
            to which this subsection applies if the Commission
            finds that--
                        ``(i) the provision of 2-way digital data
                    service by that station causes any interference
                    that cannot otherwise be remedied; or
                        ``(ii) the provision of 1-way digital data
                    service by that station causes any
                    interference.
                ``(B) The Commission shall grant any such station,
            upon application (made in such form and manner and
            containing such information as the Commission may
            require) by the licensee or permittee of that station,
            authority to move the station to another location, to
            modify its facilities to operate on a different
            channel, or to use booster or auxiliary transmitting
            locations, if the grant of authority will not cause
            interference to the allowable or protected service
            areas of full service digital television stations,
            National Television Standards Committee assignments, or
            television translator stations, and provided, however,
            no such authority shall be granted unless it is
            consistent with existing Commission regulations
            relating to the movement, modification, and use of non-
            class A low power television transmission facilities in
            order--
                        ``(i) to operate within television channels
                    2 through 51, inclusive; or
                        ``(ii) to demonstrate the utility of low-
                    power television stations to provide high-speed
                    2-way wireless digital data service.
                ``(C) The Commission shall require quarterly
            reports from each station authorized to provide digital
            data services under this subsection that include--
                        ``(i) information on the station's
                    experience with interference complaints and the
                    resolution thereof;
                        ``(ii) information on the station's market
                    success in providing digital data service; and
                        ``(iii) such other information as the
                    Commission may require in order to administer
                    this subsection.
                ``(D) The Commission shall resolve any complaints
            of interference with television reception caused by any
            station providing digital data service authorized under
            this subsection within 60 days after the complaint is
            received by the Commission.
                ``(6) The Commission shall assess and collect from
            any low-power television station authorized to provide
            digital data service under this subsection an annual
            fee or other schedule or method of payment comparable
            to any fee imposed under the authority of this Act on
            providers of similar services. Amounts received by the
            Commission under this paragraph may be retained by the
            Commission as an offsetting collection to the extent
            necessary to cover the costs of developing and
            implementing the pilot program authorized by this
            subsection, and regulating and supervising the
            provision of digital data service by low-power
            television stations under this subsection. Amounts
            received by the Commission under this paragraph in
            excess of any amount retained under the preceding
            sentence shall be deposited in the Treasury in
            accordance with chapter 33 of title 31, United States
            Code.
                ``(7) In this subsection, the term `digital data
            service' includes--
                        ``(A) digitally-based interactive broadcast
                    service; and
                        ``(B) wireless Internet access, without
                    regard to--
                                ``(i) whether such access is--
                                        ``(I) provided on a one-way
                                    or a two-way basis;
                                        ``(II) portable or fixed;
                                    or
                                        ``(III) connected to the
                                    Internet via a band allocated
                                    to Interactive Video and Data
                                    Service; and
                                ``(ii) the technology employed in
                            delivering such service, including the
                            delivery of such service via multiple
                            transmitters at multiple locations.
                ``(8) Nothing in this subsection limits the
            authority of the Commission under any other provision
            of law.''.
        (b) The Federal Communications Commission shall submit a
    report to the Congress on June 30, 2001, and June 30, 2002,
    evaluating the utility of using low-power television stations
    to provide high-speed digital data service. The reports shall
    be based on the pilot projects authorized by section 336(h) of
    the Communications Act of 1934 (47 U.S.C. 336(h)).
        Sec. 144. (a) The Magnuson-Stevens Fishery Conservation and
    Management Act (16 U.S.C. 1801 et. seq.) is amended--
                (1) in section 303(d)(1)(A) by striking ``October
            1, 2000,'' and inserting ``October 1, 2002,'';
                (2) in section 303(d)(5) by striking ``October 1,
            2000,'' and inserting ``October 1, 2002,'';
                (3) in section 407(b) by striking ``October 1,
            2000,'' and inserting ``October 1, 2002,''; and
                (4) in section 407(c)(1) by striking ``October 1,
            2000,'' and inserting ``October 1, 2002,''.
        (b) Notwithstanding sections 303(d)(1)(A) and 303(d)(1)(B)
    of the Magnuson-Stevens Fishery Conservation and Management
    Act, as amended by this section, the Pacific Fishery Management
    Council may recommend and the Secretary of Commerce may approve
    and implement any fishery management plan, plan amendment, or
    regulation, for fixed gear sablefish subject to the
    jurisdiction of such Council, that--
                (1) allows the use of more than one groundfish
            fishing permit by each fishing vessel; and/or
                (2) sets cumulative trip limit periods, up to
            twelve months in any calendar year, that allow fishing
            vessels a reasonable opportunity to harvest the full
            amount of the associated trip limits.
    Notwithstanding subsection (a), the Gulf of Mexico Fishery
    Management Council may develop a biological, economic, and
    social profile of any fishery under its jurisdiction that may
    be considered for management under a quota management system,
    including the benefits and consequences of the quota management
    systems considered. The North Pacific Fishery Management
    Council shall examine the fisheries under its jurisdiction,
    particularly the Gulf of Alaska groundfish and Bering Sea crab
    fisheries, to determine whether rationalization is needed. In
    particular, the North Pacific Council shall analyze individual
    fishing quotas, processor quotas, cooperatives, and quotas held
    by communities. The analysis should include an economic
    analysis of the impact of all options on communities and
    processors as well as the fishing fleets. The North Pacific
    Council shall present its analysis to the appropriations and
    authorizing committees of the Senate and House of
    Representatives in a timely manner.
        (c)(1) Public Law 101-380, as amended by section 2204 of
    chapter 2 of title II of Public Law 106-246, is amended
    further--
                (A) by striking the second sentence of section
            5008(c) and inserting in lieu thereof ``The Federal
            Advisory Committee Act (5 U.S.C. App. 2) shall not
            apply to the Institute.'';
                (B) by inserting the following sentence at the end
            of section 5008(e): ``The administrative funds of the
            Institute and the administrative funds of the North
            Pacific Research Board created under Public Law 105-83
            may be used to jointly administer such programs at the
            discretion of the North Pacific Research Board.''; and
                (C) in section 5006(c), as amended by this Act or
            any other Act making appropriations for fiscal year
            2001, by striking the colon immediately before the
            first proviso and inserting in lieu thereof, ``of which
            up to $3,000,000 may be used for the lease payment to
            the Alaska SeaLife Center under section 5008(b)(2):''.
        (2) Section 401(e) of Public Law 105-83 is amended--
                (A) in paragraph (2) by striking ``and recommended
            for Secretarial approval'';
                (B) in paragraph (3)(A) by striking ``, who shall
            be a co-chair of the Board'';
                (C) in paragraph (3)(F) by striking ``, who shall
            be a co-chair of the Board'';
                (D) in paragraph (4)(A) by striking ``and
            administer'';
                (E) in paragraph (4)(B) by striking the first
            sentence;
                (F) by adding at the end the following new
            paragraph:
                ``(5) All decisions of the Board, including grant
            recommendations, shall be by majority vote of the
            members listed in paragraphs (3)(A), (3)(F), (3)(G),
            (3)(J), and (3)(N), in consultation with the other
            members. The five voting members may act on behalf of
            the Board in all matters of administration, including
            the disposition of research funds not made available by
            this section, at any time on or after October 1,
            2000.''; and
                (G) in paragraph (3) by adding at the end the
            following:
                        ``(N) one member who shall represent
                    fishing interests and shall be nominated by the
                    Board and appointed by the Secretary.''.
        (3) Funds made available for the construction of the NOAA
    laboratory at Lena Point shall be considered incremental
    funding for the initial phase of construction at Lena Point for
    site work and related infrastructure and systems installation.
        (4) Notwithstanding any other provision of law, funds made
    available by this Act or any other Act for the Alaska SeaLife
    Center shall be considered direct payments for all purposes of
    applicable law.
        (5) Public Law 99-5 is amended--
                (A) by inserting after section 3(e) the following:
        ``(f) The United States shall be represented on the
    Transboundary Panel by seven panel members, of whom--
                ``(1) one shall be an official of the United States
            Government, with salmon fishery management
            responsibility and expertise;
                ``(2) one shall be an official of the State of
            Alaska, with salmon fishery management responsibility
            and expertise; and
                ``(3) five shall be individuals knowledgeable and
            experienced in the salmon fisheries for which the
            Transboundary Panel is responsible.'';
                (B) by renumbering the remaining subsections;
                (C) in section 3(g), as redesignated by this
            subsection, by striking ``The appointing authorities''
            and inserting in lieu thereof ``For the northern,
            southern, and Fraser River panels, the appointing
            authorities''; and
                (D) in section 3(h)(3), as redesignated by this
            subsection, by striking ``northern and southern'' and
            inserting in lieu thereof ``northern, southern, and
            transboundary''.
        (6) The fishery research vessel for which funds were
    appropriated in Public Law 106-113 shall be homeported in
    Kodiak, Alaska, and is hereby named ``OSCAR DYSON''.
        (d)(1) The Secretary of Commerce (hereinafter ``the
    Secretary'') shall, after notice and opportunity for public
    comment, adopt final regulations not later than May 1, 2001 to
    implement a fishing capacity reduction program for crab
    fisheries included in the Fishery Management Plan for
    Commercial King and Tanner Crab Fisheries in the Bering Sea and
    Aleutian Islands (hereinafter ``BSAI crab fisheries''). In
    implementing the program the Secretary shall--
                (A) reduce the fishing capacity in the BSAI crab
            fisheries by permanently reducing the number of license
            limitation program crab licenses;
                (B) permanently revoke all fishery licenses,
            fishery permits, area and species endorsements, and any
            other fishery privileges, for all fisheries subject to
            the jurisdiction of the United States, issued to a
            vessel or vessels (or to persons on the basis of their
            operation or ownership of that vessel or vessels) for
            which a BSAI crab fisheries reduction permit is
            surrendered and revoked under section 6011(b) of title
            50, Code of Federal Regulations;
                (C) ensure that the Secretary of Transportation is
            notified of each vessel for which a reduction permit is
            surrendered and revoked under the program, with a
            request that such Secretary permanently revoke the
            fishery endorsement of each such vessel and refuse
            permission to transfer any such vessel to a foreign
            flag under paragraph (5);
                (D) ensure that vessels removed from the BSAI crab
            fisheries under the program are made permanently
            ineligible to participate in any fishery worldwide, and
            that the owners of such vessels contractually agree
            that such vessels will operate only under the United
            States flag or be scrapped as a reduction vessel
            pursuant to section 600.1011(c) of title 50, Code of
            Federal Regulations;
                (E) ensure that vessels removed from the BSAI crab
            fisheries, the owners of such vessels, and the holders
            of fishery permits for such vessels forever relinquish
            any claim associated with such vessel, permits, and any
            catch history associated with such vessel or permits
            that could qualify such vessel, vessel owner, or permit
            holder for any present or future limited access system
            fishing permits in the United States fisheries based on
            such vessel, permits, or catch history;
                (F) not include the purchase of Norton Sound red
            king crab or Norton Sound blue king crab endorsements
            in the program, though any such endorsements associated
            with a reduction permit or vessel made ineligible or
            scrapped under the program shall also be surrendered
            and revoked as if surrendered and revoked pursuant to
            section 600.1011(b) of title 50, Code of Federal
            Regulations;
                (G) seek to obtain the maximum sustained reduction
            in fishing capacity at the least cost by establishing
            bidding procedures that--
                        (i) assign a bid score to each bid by
                    dividing the price bid for each reduction
                    permit by the total value of the crab landed in
                    the most recent five-year period in each crab
                    fishery from 1990 through 1999 under that
                    permit, with the value for each year determined
                    by multiplying the average price per pound
                    published by the State of Alaska in each year
                    for each crab fishery included in such
                    reduction permit by the total pounds landed in
                    each crab fishery under that permit in that
                    year; and
                        (ii) use a reverse auction in which the
                    lowest bid score ranks first, followed by each
                    bid with the next lowest bid score, until the
                    total bid amount of all bids equals a reduction
                    cost that the next lowest bid would cause to
                    exceed $100,000,000;
                (H) not waive or otherwise make inapplicable any
            requirements of the License Limitation Program
            applicable to such crab fisheries, in particular any
            requirements in sections 679.4(k) and (l) of title 50,
            Code of Federal Regulations;
                (I) not waive or otherwise make inapplicable any
            catcher vessel sideboards implemented under the
            American Fisheries Act (AFA), except that the North
            Pacific Fishery Management Council shall recommend to
            the Secretary and to the State of Alaska, not later
            than February 16, 2001, and the Secretary and the State
            of Alaska shall implement as appropriate, modifications
            to such sideboards to the extent necessary to permit
            AFA catcher vessels that remain in the crab fisheries
            to share proportionately in any increase in crab
            harvest opportunities that accrue to all remaining AFA
            and non-AFA catcher vessels if the fishing capacity
            reduction program required by this section is
            implemented;
                (J) establish sub-amounts and repayment fees for
            each BSAI crab fishery prosecuted under a separate
            endorsement for repayment of the reduction loan, such
            that--
                        (i) a reduction loan sub-amount is
                    established for each separate BSAI crab fishery
                    (other than Norton Sound red king crab or
                    Norton Sound blue king crab) by dividing the
                    total value of the crab landed in that fishery
                    under all reduction permits by the total value
                    of all crab landed under such permits in the
                    BSAI crab fisheries (determined using the same
                    average prices and years used under
                    subparagraph (G)(i) of this paragraph), and
                    multiplying the reduction loan amount by the
                    percentage expressed by such ratio; and
                        (ii) fish sellers who participate in the
                    crab fishery under each endorsement repay the
                    reduction loan sub-amount attributable to that
                    fishery; and
                (K) notwithstanding section 1111(b) of the Merchant
            Marine Act, 1936 (46 U.S.C. App. 1279f(b)(4)),
            establish a repayment period for the reduction loan of
            not less than 30 years.
                (2)(A) Only persons to whom a non-interim BSAI crab
            license and an area/species endorsement have been
            issued (other than persons to whom only a license and
            an area/species endorsement for Norton Sound red king
            crab or Norton Sound blue king crab have been issued)
            for vessels that--
                        (i) qualify under the License Limitation
                    Program criteria set forth in section 679.4 of
                    title 50, Code of Federal Regulations, and
                        (ii) have made at least one landing of BSAI
                    crab in either 1996, 1997, or prior to February
                    7 in 1998, may submit a bid in the fishing
                    capacity reduction program established by this
                    section.
                (B) After the date of enactment of this section--
                        (i) no vessel 60 feet or greater in length
                    overall may participate in any BSAI crab
                    fishery (other than for Norton Sound red king
                    crab or Norton Sound blue king crab) unless
                    such vessel meets the requirements set forth in
                    subparagraphs (A)(i) and (A)(ii) of this
                    paragraph; and
                        (ii) no vessel between 33 and 60 feet in
                    length overall may participate in any BSAI crab
                    fishery (other than for Norton Sound red king
                    crab or Norton Sound blue king crab) unless
                    such vessel meets the requirements set forth in
                    subparagraph (A)(i) of this paragraph. Nothing
                    in this paragraph shall be construed to affect
                    the requirements for participation in the
                    fisheries for Norton Sound red king crab or
                    Norton Sound blue king crab. The Secretary may,
                    on a case by case basis and after notice and
                    opportunity for public comment, waive the
                    application of subparagraph (A)(ii) of this
                    paragraph if the Secretary determines such
                    waiver is necessary to implement one of the
                    specific exemptions to the recent participation
                    requirement that were recommended by the North
                    Pacific Fishery Management Council in the
                    record of its October, 1998 meeting.
                (3) The fishing capacity reduction program required
            under this subsection shall be implemented under this
            subsection and sections 312(b)-(e) of the Magnuson-
            Stevens Fishery Conservation and Management Act (16
            U.S.C. 1861a(b)-(e)). Section 312 and the regulations
            found in Subpart L of Part 600 of title 50, Code of
            Federal Regulations, shall apply only to the extent
            such section or regulations are not inconsistent with
            or made inapplicable by the specific provisions of this
            subsection. Sections 600.1001, 600.1002, 600.1003,
            600.1005, 600.1010(b), 600.1010(d)(1), 600.1011(d), the
            last sentence of 600.1011(a), and the last sentence of
            600.1014(f) of such Subpart shall not apply to the
            program implemented under this subsection. The program
            shall be deemed accepted under section 600.1004, and
            any time period specified in Subpart L that would
            prevent the Secretary from complying with the May 1,
            2001 date required by this subsection shall be modified
            as appropriate to permit compliance with that date. The
            referendum required for the program under this
            subsection shall be a post-bidding referendum under
            section 600.1010 of title 50, Code of Federal
            Regulations.
                (4)(A) The fishing capacity reduction program
            required under this subsection is authorized to be
            financed in equal parts through a reduction loan of
            $50,000,000 under sections 1111 and 1112 of title XI of
            the Merchant Marine Act, 1936 (46 U.S.C. App. 1279f and
            1279g) and $50,000,000 which is authorized to be
            appropriated for the purposes of such program.
                (B) Of the $1,000,000 appropriated in section 120
            of Division A of Public Law 105-277 for the cost of a
            direct loan in the Bering Sea and Aleutian Islands crab
            fisheries--
                        (i) $500,000 shall be for the cost of
                    guaranteeing the reduction loan required under
                    subparagraph (A) of this paragraph in
                    accordance with the requirements of the Federal
                    Credit Reform Act; and
                        (ii) $500,000 shall be available to the
                    Secretary to pay for the cost of implementing
                    the fishing capacity reduction program required
                    by this subsection.
                (C) The funds described in this subsection shall
            remain available, without fiscal year limitation, until
            expended. Any funds not used for the fishing capacity
            reduction program required by this subsection, whether
            due to a rejection by referendum or otherwise, shall be
            available on or after October 15, 2002, without fiscal
            year limitation, for assistance to fishermen or fishing
            communities.
                (5)(A) The Secretary of Transportation shall, upon
            notification and request by the Secretary, for each
            vessel identified in such notification and request--
                        (i) permanently revoke any fishery
                    endorsement issued to such vessel under section
                    12108 of title 46, United States Code; and
                        (ii) refuse to grant the approval required
                    under section 9(c)(2) of the Shipping Act, 1916
                    (46 U.S.C. App. 808(c)(2)) for the placement of
                    such vessel under foreign registry or the
                    operation of such vessel under the authority of
                    a foreign country.
                (B) The Secretary shall, after notice and
            opportunity for public comment, adopt final regulations
            not later than May 1, 2001 to prohibit any vessel for
            which a reduction permit is surrendered and revoked
            under the fishing capacity reduction program required
            by this section from engaging in fishing activities on
            the high seas or under the jurisdiction of any foreign
            country while operating under the United States flag.
                (6) The purpose of this subsection is to implement
            a fishing capacity reduction program for the BSAI crab
            fisheries that results in final action to permanently
            remove harvesting capacity from such fisheries prior to
            December 31, 2001. In implementing this subsection the
            Secretary is directed to use, to the extent
            practicable, information collected and maintained by
            the State of Alaska. Any requirements of the Paperwork
            Reduction Act, the Regulatory Flexibility Act, or any
            Executive Order that would, in the opinion of the
            Secretary, prevent the Secretary from meeting the
            deadlines set forth in this subsection shall not apply
            to the fishing capacity reduction program or the
            promulgation of regulations to implement such program
            required by this subsection. Nothing in this subsection
            shall be construed to prohibit the North Pacific
            Fishery Management Council from recommending, or the
            Secretary from approving, changes to any Fishery
            Management Plan, License Limitation Program, or
            American Fisheries Act provisions affecting catcher
            vessel sideboards in accordance with applicable law:
            Provided, That except as specifically provided in this
            subsection, such Council may not recommend, and the
            Secretary may not approve, any action that would have
            the effect of increasing the number of vessels eligible
            to participate in the BSAI crab fisheries after March
            1, 2001.
        (e)(1) This subsection may be referred to as the ``Pribilof
    Islands Transition Act''.
        (2) The purpose of this subsection is to complete the
    orderly withdrawal of the National Oceanic and Atmospheric
    Administration from the civil administration of the Pribilof
    Islands, Alaska.
        (3) Public Law 89-702 (16 U.S.C. 1151 et seq.), popularly
    known and referred to in this subsection as the Fur Seal Act of
    1966, is amended by amending section 206 (16 U.S.C. 1166) to
    read as follows:
        ``Sec. 206. (a)(1) Subject to the availability of
    appropriations, the Secretary shall provide financial
    assistance to any city government, village corporation, or
    tribal council of St. George, Alaska, or St. Paul, Alaska.
        ``(2) Notwithstanding any other provision of law relating
    to matching funds, funds provided by the Secretary as
    assistance under this subsection may be used by the entity as
    non-Federal matching funds under any Federal program that
    requires such matching funds.
        ``(3) The Secretary may not use financial assistance
    authorized by this Act--
                ``(A) to settle any debt owed to the United States;
                ``(B) for administrative or overhead expenses; or
                ``(C) for contributions sought or required from any
            person for costs or fees to clean up any matter that
            was caused or contributed to by such person on or after
            March 15, 2000.
        ``(4) In providing assistance under this subsection the
    Secretary shall transfer any funds appropriated to carry out
    this section to the Secretary of the Interior, who shall
    obligate such funds through instruments and procedures that are
    equivalent to the instruments and procedures required to be
    used by the Bureau of Indian Affairs pursuant to title IV of
    the Indian Self-Determination and Education Assistance Act (25
    U.S.C. 450 et seq.).
        ``(5) In any fiscal year for which less than all of the
    funds authorized under subsection (c)(1) are appropriated, such
    funds shall be distributed under this subsection on a pro rata
    basis among the entities referred to in subsection (c)(1) in
    the same proportions in which amounts are authorized by that
    subsection for grants to those entities.
        ``(b)(1) Subject to the availability of appropriations, the
    Secretary shall provide assistance to the State of Alaska for
    designing, locating, constructing, redeveloping, permitting, or
    certifying solid waste management facilities on the Pribilof
    Islands to be operated under permits issued to the City of St.
    George and the City of St. Paul, Alaska, by the State of Alaska
    under section 46.03.100 of the Alaska Statutes.
        ``(2) The Secretary shall transfer any appropriations
    received under paragraph (1) to the State of Alaska for the
    benefit of rural and Native villages in Alaska for obligation
    under section 303 of Public Law 104-182, except that subsection
    (b) of that section shall not apply to those funds.
        ``(3) In order to be eligible to receive financial
    assistance under this subsection, not later than 180 days after
    the date of enactment of this paragraph, each of the Cities of
    St. Paul and St. George shall enter into a written agreement
    with the State of Alaska under which such City shall identify
    by its legal boundaries the tract or tracts of land that such
    City has selected as the site for its solid waste management
    facility and any supporting infrastructure.
        ``(c) There are authorized to be appropriated to the
    Secretary for fiscal years 2001, 2002, 2003, 2004, and 2005--
                ``(1) for assistance under subsection (a) a total
            not to exceed--
                        ``(A) $9,000,000, for grants to the City of
                    St. Paul;
                        ``(B) $6,300,000, for grants to the
                    Tanadgusix Corporation;
                        ``(C) $1,500,000, for grants to the St.
                    Paul Tribal Council;
                        ``(D) $6,000,000, for grants to the City of
                    St. George;
                        ``(E) $4,200,000, for grants to the St.
                    George Tanaq Corporation; and
                        ``(F) $1,000,000, for grants to the St.
                    George Tribal Council; and
                ``(2) for assistance under subsection (b), for
            fiscal years 2001, 2002, 2003, 2004, and 2005 a total
            not to exceed--
                        ``(A) $6,500,000 for the City of St. Paul;
                    and
                        ``(B) $3,500,000 for the City of St.
                    George.
        ``(d) None of the funds authorized by this section may be
    available for any activity a purpose of which is to influence
    legislation pending before the Congress, except that this
    subsection shall not prevent officers or employees of the
    United States or of its departments, agencies, or commissions
    from communicating to Members of Congress, through proper
    channels, requests for legislation or appropriations that they
    consider necessary for the efficient conduct of public
    business.
        ``(e) Neither the United States nor any of its agencies,
    officers, or employees shall have any liability under this Act
    or any other law associated with or resulting from the
    designing, locating, contracting for, redeveloping, permitting,
    certifying, operating, or maintaining any solid waste
    management facility on the Pribilof Islands as a consequence
    of--
                ``(1) having provided assistance to the State of
            Alaska under subsection (b); or
                ``(2) providing funds for, or planning,
            constructing, or operating, any interim solid waste
            management facilities that may be required by the State
            of Alaska before permanent solid waste management
            facilities constructed with assistance provided under
            subsection (b) are complete and operational.
        ``(f) Each entity which receives assistance authorized
    under subsection (c) shall submit an audited statement listing
    the expenditure of that assistance to the Committee on
    Appropriations and the Committee on Resources of the House of
    Representatives and the Committee on Appropriations and the
    Committee on Commerce, Science, and Transportation of the
    Senate, on the last day of fiscal years 2002, 2004, and 2006.
        ``(g) Amounts authorized under subsection (c) are intended
    by Congress to be provided in addition to the base funding
    appropriated to the National Oceanic and Atmospheric
    Administration in fiscal year 2000.''.
                (4) Section 205 of the Fur Seal Act of 1966 (16
            U.S.C. 1165) is amended--
                        (A) by amending subsection (c) to read as
                    follows:
        ``(c) Not later than 3 months after the date of the
    enactment of the Pribilof Islands Transition Act, the Secretary
    shall submit to the Committee on Commerce, Science, and
    Transportation of the Senate and the Committee on Resources of
    the House of Representatives a report that includes--
                ``(1) a description of all property specified in
            the document referred to in subsection (a) that has
            been conveyed under that subsection;
                ``(2) a description of all Federal property
            specified in the document referred to in subsection (a)
            that is going to be conveyed under that subsection; and
                ``(3) an identification of all Federal property on
            the Pribilof Islands that will be retained by the
            Federal Government to meet its responsibilities under
            this Act, the Convention, and any other applicable
            law.''; and
                        (B) by striking subsection (g).
                (5)(A)(i) The Secretary of Commerce shall not be
            considered to have any obligation to promote or
            otherwise provide for the development of any form of an
            economy not dependent on sealing on the Pribilof
            Islands, Alaska, including any obligation under section
            206 of the Fur Seal Act of 1966 (16 U.S.C. 1166) or
            section 3(c)(1)(A) of Public Law 104-91 (16 U.S.C. 1165
            note).
                (ii) This subparagraph shall not affect any cause
            of action under section 206 of the Fur Seal Act of 1966
            (16 U.S.C. 1166) or section 3(c)(1)(A) of Public Law
            104-91 (16 U.S.C. 1165 note)--
                        (I) that arose before the date of the
                    enactment of this title; and
                        (II) for which a judicial action is filed
                    before the expiration of the 5-year period
                    beginning on the date of the enactment of this
                    title.
                (iii) Nothing in this subsection shall be construed
            to imply that--
                        (I) any obligation to promote or otherwise
                    provide for the development in the Pribilof
                    Islands of any form of an economy not dependent
                    on sealing was or was not established by
                    section 206 of the Fur Seal Act of 1966 (16
                    U.S.C. 1166), section 3(c)(1)(A) of Public Law
                    104-91 (16 U.S.C. 1165 note), or any other
                    provision of law; or
                        (II) any cause of action could or could not
                    arise with respect to such an obligation.
                (iv) Section 3(c)(1) of Public Law 104-91 (16
            U.S.C. 1165 note) is amended by striking subparagraph
            (A) and redesignating subparagraphs (B) through (D) in
            order as subparagraphs (A) through (C).
                (B)(i) Subject to paragraph (5)(B)(ii), there are
            terminated all obligations of the Secretary of Commerce
            and the United States to--
                        (I) convey property under section 205 of
                    the Fur Seal Act of 1966 (16 U.S.C. 1165); and
                        (II) carry out cleanup activities,
                    including assessment, response, remediation,
                    and monitoring, except for postremedial
                    measures such as monitoring and operation and
                    maintenance activities related to National
                    Oceanic and Atmospheric Administration
                    administration of the Pribilof Islands, Alaska,
                    under section 3 of Public Law 104-91 (16 U.S.C.
                    1165 note) and the Pribilof Islands
                    Environmental Restoration Agreement between the
                    National Oceanic and Atmospheric Administration
                    and the State of Alaska, signed January 26,
                    1996.
                (ii) Paragraph (5)(B)(i) shall apply on and after
            the date on which the Secretary of Commerce certifies
            that--
                        (I) the State of Alaska has provided
                    written confirmation that no further corrective
                    action is required at the sites and operable
                    units covered by the Pribilof Islands
                    Environmental Restoration Agreement between the
                    National Oceanic and Atmospheric Administration
                    and the State of Alaska, signed January 26,
                    1996, with the exception of postremedial
                    measures, such as monitoring and operation and
                    maintenance activities;
                        (II) the cleanup required under section
                    3(a) of Public Law 104-91 (16 U.S.C. 1165 note)
                    is complete;
                        (III) the properties specified in the
                    document referred to in subsection (a) of
                    section 205 of the Fur Seal Act of 1966 (16
                    U.S.C. 1165(a)) can be unconditionally offered
                    for conveyance under that section; and
                        (IV) all amounts appropriated under section
                    206(c)(1) of the Fur Seal Act of 1966, as
                    amended by this title, have been obligated.
                (iii)(I) On and after the date on which section
            3(b)(5) of Public Law 104-91 (16 U.S.C. 1165 note) is
            repealed pursuant to subparagraph (C), the Secretary of
            Commerce may not seek or require financial contribution
            by or from any local governmental entity of the
            Pribilof Islands, any official of such an entity, or
            the owner of land on the Pribilof Islands, for cleanup
            costs incurred pursuant to section 3(a) of Public Law
            104-91 (as in effect before such repeal), except as
            provided in subparagraph (B)(iii)(II).
                (II) Subparagraph (B)(iii)(I) shall not limit the
            authority of the Secretary of Commerce to seek or
            require financial contribution from any person for
            costs or fees to clean up any matter that was caused or
            contributed to by such person on or after March 15,
            2000.
                (iv) For purposes of paragraph (2)(C), the
            following requirements shall not be considered to be
            conditions on conveyance of property:
                        (I) Any requirement that a potential
                    transferee must allow the National Oceanic and
                    Atmospheric Administration continued access to
                    the property to conduct environmental
                    monitoring following remediation activities.
                        (II) Any requirement that a potential
                    transferee must allow the National Oceanic and
                    Atmospheric Administration access to the
                    property to continue the operation, and
                    eventual closure, of treatment facilities.
                        (III) Any requirement that a potential
                    transferee must comply with institutional
                    controls to ensure that an environmental
                    cleanup remains protective of human health or
                    the environment that do not unreasonably affect
                    the use of the property.
                        (IV) Valid existing rights in the property,
                    including rights granted by contract, permit,
                    right-of-way, or easement.
                        (V) The terms of the documents described in
                    subparagraph (d)(2).
                (C) Effective on the date on which the Secretary of
            Commerce makes the certification described in
            subparagraph (b)(2), the following provisions are
            repealed:
                        (i) Section 205 of the Fur Seal Act of 1966
                    (16 U.S.C. 1165).
                        (ii) Section 3 of Public Law 104-91 (16
                    U.S.C. 1165 note).
                (D)(i) Nothing in this subsection shall affect any
            obligation of the Secretary of Commerce, or of any
            Federal department or agency, under or with respect to
            any document described in subparagraph (D)(ii) or with
            respect to any lands subject to such a document.
                (ii) The documents referred to in subparagraph
            (D)(i) are the following:
                        (I) The Transfer of Property on the
                    Pribilof Islands: Description, Terms, and
                    Conditions, dated February 10, 1984, between
                    the Secretary of Commerce and various Pribilof
                    Island entities.
                        (II) The Settlement Agreement between
                    Tanadgusix Corporation and the City of St.
                    Paul, dated January 11, 1988, and approved by
                    the Secretary of Commerce on February 23, 1988.
                        (III) The Memorandum of Understanding
                    between Tanadgusix Corporation, Tanaq
                    Corporation, and the Secretary of Commerce,
                    dated December 22, 1976.
                (E)(i) Except as provided in subparagraph (E)(ii),
            the definitions set forth in section 101 of the Fur
            Seal Act of 1966 (16 U.S.C. 1151) shall apply to this
            paragraph.
                (ii) For purposes of this paragraph, the term
            ``Natives of the Pribilof Islands'' includes the
            Tanadgusix Corporation, the St. George Tanaq
            Corporation, and the city governments and tribal
            councils of St. Paul and St. George, Alaska.
                (6)(A) Section 3 of Public Law 104-91 (16 U.S.C.
            1165 note) and the Fur Seal Act of 1966 (16 U.S.C. 1151
            et seq.) are amended by--
                        (i) striking ``(d)'' and all that follows
                    through the heading for subsection (d) of
                    section 3 of Public Law 104-91 and inserting
                    ``SEC. 212.''; and
                        (ii) moving and redesignating such
                    subsection so as to appear as section 212 of
                    the Fur Seal Act of 1966.
                (B) Section 201 of the Fur Seal Act of 1966 (16
            U.S.C. 1161) is amended by striking ``on such Islands''
            and insert ``on such property''.
                (C) The Fur Seal Act of 1966 (16 U.S.C. 1151 et
            seq.) is amended by inserting before title I the
            following:
        ``Section 1. This Act may be cited as the `Fur Seal Act of
    1966'.''.
                (7) Section 3 of Public Law 104-91 (16 U.S.C. 1165
            note) is amended--
                        (A) by striking subsection (f) and
                    inserting the following:
        ``(f)(1) There are authorized to be appropriated
    $10,000,000 for each of fiscal years 2001, 2002, 2003, 2004,
    and 2005 for the purposes of carrying out this section.
        ``(2) None of the funds authorized by this subsection may
    be expended for the purpose of cleaning up or remediating any
    landfills, wastes, dumps, debris, storage tanks, property,
    hazardous or unsafe conditions, or contaminants, including
    petroleum products and their derivatives, left by the
    Department of Defense or any of its components on lands on the
    Pribilof Islands, Alaska.''; and
                        (B) by adding at the end the following:
        ``(g)(1) Of amounts authorized under subsection (f) for
    each of fiscal years 2001, 2002, 2003, 2004, and 2005, the
    Secretary may provide to the State of Alaska up to $2,000,000
    per fiscal year to capitalize a revolving fund to be used by
    the State for loans under this subsection.
        ``(2) The Secretary shall require that any revolving fund
    established with amounts provided under this subsection shall
    be used only to provide low-interest loans to Natives of the
    Pribilof Islands to assess, respond to, remediate, and monitor
    contamination from lead paint, asbestos, and petroleum from
    underground storage tanks.
        ``(3) The definitions set forth in section 101 of the Fur
    Seal Act of 1966 (16 U.S.C. 1151) shall apply to this section,
    except that the term `Natives of the Pribilof Islands' includes
    the Tanadgusix and Tanaq Corporations.
        ``(4) Before the Secretary may provide any funds to the
    State of Alaska under this section, the State of Alaska and the
    Secretary must agree in writing that, on the last day of fiscal
    year 2011, and of each fiscal year thereafter until the full
    amount provided to the State of Alaska by the Secretary under
    this section has been repaid to the United States, the State of
    Alaska shall transfer to the Treasury of the United States
    monies remaining in the revolving fund, including principal and
    interest paid into the revolving fund as repayment of loans.''.
        (f)(1) The President, after consultation with the Governor
    of the State of Hawaii, may designate any Northwestern Hawaiian
    Islands coral reef or coral reef ecosystem as a coral reef
    reserve to be managed by the Secretary of Commerce.
        (2) Upon the designation of a reserve under paragraph (1)
    by the President, the Secretary shall--
                (A) take action to initiate the designation of the
            reserve as a National Marine Sanctuary under sections
            303 and 304 of the National Marine Sanctuaries Act (16
            U.S.C. 1433);
                (B) establish a Northwestern Hawaiian Islands
            Reserve Advisory Council under section 315 of that Act
            (16 U.S.C. 1445a), the membership of which shall
            include at least 1 representative from Native Hawaiian
            groups; and
                (C) until the reserve is designated as a National
            Marine Sanctuary, manage the reserve in a manner
            consistent with the purposes and policies of that Act.
        (3) Notwithstanding any other provision of law, no closure
    areas around the Northwestern Hawaiian Islands shall become
    permanent without adequate review and comment.
        (4) The Secretary shall work with other Federal agencies
    and the Director of the National Science Foundation, to develop
    a coordinated plan to make vessels and other resources
    available for conservation or research activities for the
    reserve.
        (5) If the Secretary has not designated a national marine
    sanctuary in the Northwestern Hawaiian Islands under sections
    303 and 304 of the National Marine Sanctuaries Act (16 U.S.C.
    1433, 1434) before October 1, 2005, the Secretary shall conduct
    a review of the management of the reserve under section 304(e)
    of that Act (16 U.S.C. 1434(e)).
        (6) No later than 6 months after the date of enactment of
    this Act, the Secretary shall submit a report to the Senate
    Committee on Commerce, Science, and Transportation and the
    House of Representatives Committee on Resources, describing
    actions taken to implement this subsection, including costs of
    monitoring, enforcing, and addressing marine debris, and the
    extent to which the fiscal or other resources necessary to
    carry out this subsection are reflected in the Budget of the
    United States Government submitted by the President under
    section 1104 of title 31, United States Code.
        (7) There are authorized to be appropriated to the
    Secretary of Commerce to carry out the provisions of this
    subsection such sums, not exceeding $4,000,000 for each of
    fiscal years 2001, 2002, 2003, 2004, and 2005, as are reported
    under paragraph (5) to be reflected in the Budget of the United
    States Government.
        (g) Section 111(b)(1) of the Sustainable Fisheries Act (16
    U.S.C. 1855 nt) is amended by striking the last sentence and
    inserting, ``There are authorized to be appropriated to carry
    out this subsection $500,000 for each fiscal year.''.
        Sec. 145. (a) Section 4(b)(1) of the Department of State
    Special Agents Retirement Act of 1998 (22 U.S.C. 4044 note;
    Public Law 105-382; 112 Stat. 3409) is amended by inserting
    ``or participant who was serving as of January 1, 1997'' after
    ``employed participant''.
        (b) The amendment made by this section shall take effect on
    January 1, 2001.
        Sec. 146. (a) Congress makes the following findings:
                (1) Total steel imports in 2000 will be over 2\1/2\
            times higher than in 1991, continuing the alarming
            trend of sharply increasing steel imports over the past
            decade.
                (2) Unprecedented levels of steel imports flooded
            the United States market in 1998 and 1999, causing a
            crisis in which thousands of steelworkers were laid off
            and 6 steel companies went bankrupt.
                (3) The domestic steel industry still has not had
            an opportunity to recover from the 1998-1999 steel
            import crisis, and steel imports are again causing
            serious injury to United States steel producers and
            workers.
                (4) Total steel imports through August 2000 are 17
            percent higher than over the same period in 1999 and
            greater even than imports over the same period in 1998,
            a record year.
                (5) Steel prices continue to be depressed, with
            hot-rolled steel prices 12 percent lower in August 2000
            than in the first quarter of 1998, and average import
            customs values for all steel products more than 15
            percent lower over the same period.
                (6) The United States Government must maintain and
            fully enforce all existing relief against foreign
            unfair trade.
                (7) The United States steel industry is a clean,
            highly efficient industry having modernized itself at
            great human and financial cost, shedding over 330,000
            jobs and investing more than $50,000,000,000 over the
            last 20 years.
                (8) Capacity utilization in the United States steel
            industry has fallen sharply since the beginning of the
            year and the market capitalization and debt ratings of
            the major United States steel firms are at precarious
            levels.
                (9) The Department of Commerce recently documented
            the underlying market-distorting practices and
            longstanding structural problems that plague the global
            steel trade with excess capacity and cause diversion of
            unfairly traded foreign steel to the United States.
                (10) The President recognized that unfair trade
            played a significant role in the devastating import
            surge of steel and recognized the need to vigorously
            enforce the trade laws.
        (b) Congress calls upon the President--
                (1) to take all appropriate action within his power
            to provide relief from injury caused by steel imports;
            and
                (2) to immediately request the United States
            International Trade Commission to commence an expedited
            investigation for positive adjustment under section 201
            of the Trade Act of 1974 of such steel imports.
        Sec. 147. Section 5(b)(1) of the Act of January 2, 1951 (15
    U.S.C. 1175(b)(1); popularly known as the ``Johnson Act'') is
    amended by inserting ``for a voyage or a segment of a voyage
    that begins and ends in the State of Hawaii, or'' after
    ``Except''.
        Sec. 148. (a) Section 312(a)(7) of the Communications Act
    of 1934 (47 U.S.C. 312(a)(7)) is amended by inserting ``, other
    than a non-commercial educational broadcast station,'' after
    ``use of a broadcasting station''.
        (b) The Federal Communications Commission shall take no
    action against any non-commercial educational broadcast station
    which declines to carry a political advertisement.
        Sec. 149. The Small Business Innovation Research program,
    otherwise expiring at the end of fiscal year 2000, is
    authorized to continue in effect during fiscal year 2001.
        Sec. 150. There is hereby appropriated for payment to the
    Ricky Ray Hemophilia Relief Fund, as provided by Public Law
    105-369, $105,000,000, of which notwithstanding any other
    provision of law $10,000,000 shall be for program management of
    the Health Resources and Services Administration, to remain
    available until expended.
        Sec. 151. (a) There is hereby appropriated to a separate
    account to be established in the Department of Labor for
    expenses of administering the Energy Employees Occupational
    Illness Compensation Act, $60,400,000, to remain available
    until expended: Provided, That the Secretary of Labor is
    authorized to transfer to any Executive agency with authority
    under the Energy Employees Occupational Illness Compensation
    Act, such sums as may be necessary in FY 2001 to carry out
    those authorities.
          (b) For purposes of the Balanced Budget and Emergency
    Deficit Control Act of 1985, amounts appropriated under
    subsection (a) shall be direct spending: Provided, That amounts
    appropriated annually thereafter for such administrative
    expenses shall be direct spending.
        Sec. 152. Treatment of Certain Cancer Hospitals. (a) In
    General.--Section 1886(d)(1)(B)(v) of the Social Security Act
    (42 U.S.C. 1395ww(d)(1)(B)(v)) is amended--
                (1) in subclause (I) by striking ``or'' at the end;
                (2) in subclause (II) by striking the semicolon at
            the end and inserting ``, or''; and
                (3) by adding at the end the following:
                ``(III) a hospital that was recognized as a
            clinical cancer research center by the National Cancer
            Institute of the National Institutes of Health as of
            February 18, 1998, that has never been reimbursed for
            inpatient hospital services pursuant to a reimbursement
            system under a demonstration project under section
            1814(b), that is a freestanding facility organized
            primarily for treatment of and research on cancer and
            is not a unit of another hospital, that as of the date
            of the enactment of this subclause, is licensed for 162
            acute care beds, and that demonstrates for the 4-year
            period ending on June 30, 1999, that at least 50
            percent of its total discharges have a principal
            finding of neoplastic disease, as defined in
            subparagraph (E);'' and
        (b) Conforming Amendment.--Section 1886(d)(1)(E) of the
    Social Security Act (42 U.S.C. 1395ww(d)(1)(E)) is amended by
    striking ``For purposes of subparagraph (B)(v)(II)'' and
    inserting ``For purposes of subclauses (II) and (III) of
    subparagraph (B)(v)''.
        (c) Payment.--
                (1) Application to cost reporting periods.--Any
            classification by reason of section
            1886(d)(1)(B)(v)(III) of the Social Security Act (as
            added by subsection (a)) shall apply to 12-month cost
            reporting periods beginning on or after July 1, 1999.
                (2) Base year.--Notwithstanding the provisions of
            section 1886(b)(3)(E) of such Act (42 U.S.C.
            1395ww(b)(3)(E)) or other provisions to the contrary,
            the base cost reporting period for purposes of
            determining the target amount for any hospital
            classified by reason of section 1886(d)(1)(B)(v)(III)
            of such Act (as added by subsection (a)) shall be the
            12-month cost reporting period beginning on July 1,
            1995.
                (3) Deadline for payments.--Any payments owed to a
            hospital by reason of this subsection shall be made
            expeditiously, but in no event later than 1 year after
            the date of the enactment of this Act.
        Sec. 153. (a) Section 4(2) of the Delta Development Act (42
    U.S.C. 3121 note; Public Law 100-460) is amended--
                (1) by inserting ``Alabama,'' before ``Arkansas'';
                (2) in paragraph (G), by striking ``and'' at the
            end;
                (3) in paragraph (H)--
                        (A) by striking ``and'' before ``such'';
                    and
                        (B) by inserting ``and'' after the
                    semicolon at the end; and
                (4) by adding at the end the following:
                        ``(I) the Alabama counties of Pickens,
                    Greene, Sumter, Choctaw, Clarke, Washington,
                    Marengo, Hale, Perry, Wilcox, Lowndes, Bullock,
                    Macon, Barbour, Russell, and Dallas;'';
        (b) At the end of section 382A of ``The Delta Regional
    Authority Act of 2000'' as incorporated in this Act, insert the
    following:
                ``(4) Notwithstanding any other provision of law,
            the State of Alabama shall be a full member of the
            Delta Regional Authority and shall be entitled to all
            rights and privileges that said membership affords to
            all other participating States in the Delta Regional
            Authority.''.

    SEC. 154. NORTHERN WISCONSIN.

        (a) Definition of Northern Wisconsin.--In this section, the
    term ``northern Wisconsin'' means the counties of Douglas,
    Ashland, Bayfield, and Iron, Wisconsin.
        (b) Establishment of Program.--The Secretary of the Army
    may establish a pilot program to provide environmental
    assistance to non-Federal interests in northern Wisconsin.
        (c) Form of Assistance.--Assistance under this section may
    be in the form of design and reconstruction assistance or
    water-related environmental infrastructure and resource
    protection and development projects in northern Wisconsin,
    including projects for wastewater treatment and related
    facilities, water supply and related facilities, environmental
    restoration, and surface water resource protection and
    development.
        (d) Public Ownership Requirement.--The Secretary may
    provide assistance for a project under this section only if the
    project is publicly owned.
        (e) Local Cooperation Agreement.--
                (1) In general.--Before providing assistance under
            this section, the Secretary shall enter into a local
            cooperation agreement with a non-Federal interest to
            provide for design and construction of the project to
            be carried out with the assistance.
                (2) Requirements.--Each local cooperation agreement
            entered into under this subsection shall provide for
            the following:
                        (A) Plan.--Development by the Secretary, in
                    consultation with appropriate Federal and State
                    officials, of a facilities or restructure
                    protection and development plan, including
                    appropriate engineering plans and
                    specifications.
                        (B) Legal and institutional structures.--
                    Establishment of such legal and institutional
                    structures as are necessary to ensure the
                    effective long-term operation of the project by
                    the non-Federal interest.
                (3) Cost sharing.--
                        (A) In general.--The Federal share of
                    project costs under each local cooperation
                    agreement entered into under this subsection
                    shall be 75 percent. The Federal share may be
                    in the form of grants or reimbursements of
                    project costs.
                        (B) Credit for design work.--The non-
                    Federal interest shall receive credit for the
                    reasonable costs of design work completed by
                    the non-Federal interest before entering into a
                    local cooperation agreement with the Secretary
                    for a project. The credit for the design work
                    shall not exceed 6 percent of the local
                    construction costs of the project.
                        (C) Credit for interest.--In case of a
                    delay in the funding of the non-Federal share
                    of the costs of a project that is the subject
                    of an agreement under this subsection, the non-
                    Federal interest shall receive credit for
                    reasonable interest incurred in providing the
                    non-Federal share of the project's costs.
                        (D) Land, easements, and rights-of-way
                    credit.--The non-Federal interest shall receive
                    credit for land, easements, rights-of-way, and
                    reductions toward the non-Federal share of
                    project costs (including all reasonable costs
                    associated with obtaining permits necessary for
                    the construction, operation, and maintenance of
                    the project on publicly owned or controlled
                    land), but not to exceed 25 percent of the
                    total project costs.
                        (E) Operation and maintenance.--The non-
                    Federal share of operation and maintenance
                    costs for projects constructed with assistance
                    provided under this section shall be 100
                    percent.
        (f) Applicability of Other Federal And State Laws.--Nothing
    in this section waives, limits, or otherwise affects the
    applicability of any provision of Federal or State law that
    would otherwise apply to a project to be carried out with
    assistance provided under this section.
        (g) Report.--Not later than December 31, 2001, the
    Secretary shall transmit to Congress a report on the results of
    the pilot program carried out under this section, including
    recommendations concerning whether the program should be
    implemented on a national basis.
        (h) Authorization of Appropriations.--There is authorized
    to be appropriated to carry out this section $40,000,000. Such
    sums shall remain available until expended.

               TITLE II--VIETNAM EDUCATION FOUNDATION ACT OF 2000

    SECTION 201. SHORT TITLE.

        This title may be cited as the ``Vietnam Education
    Foundation Act of 2000''.

    SEC. 202. PURPOSES.

        The purposes of this title are the following:
                (1) To establish an international fellowship
            program under which--
                        (A) Vietnamese nationals can undertake
                    graduate and post-graduate level studies in the
                    sciences (natural, physical, and
                    environmental), mathematics, medicine, and
                    technology (including information technology);
                    and
                        (B) United States citizens can teach in the
                    fields specified in subparagraph (A) in
                    appropriate Vietnamese institutions.
                (2) To further the process of reconciliation
            between the United States and Vietnam and the building
            of a bilateral relationship serving the interests of
            both countries.

    SEC. 203. DEFINITIONS.

        In this title:
                (1) Board.--The term ``Board'' means the Board of
            Directors of the Foundation.
                (2) Foundation.--The term ``Foundation'' means the
            Vietnam Education Foundation established in section
            204.
                (3) Institution of higher education.--The term
            ``institution of higher education'' has the meaning
            given the term in section 101(a) of the Higher
            Education Act of 1965 (20 U.S.C. 1001(a)).
                (4) United states-vietnam debt agreement.--The term
            ``United States-Vietnam debt agreement'' means the
            Agreement Between the Government of the United States
            of America and the Government of the Socialist Republic
            of Vietnam Regarding the Consolidation and Rescheduling
            of Certain Debts Owed to, Guaranteed by, or Insured by
            the United States Government and the Agency for
            International Development, dated April 7, 1997.

    SEC. 204. ESTABLISHMENT.

        There is established the Vietnam Education Foundation as an
    independent establishment of the executive branch under section
    104 of title 5, United States Code.

    SEC. 205. BOARD OF DIRECTORS.

        (a) In General.--The Foundation shall be subject to the
    supervision and direction of the Board of Directors, which
    shall consist of 13 members, as follows:
                (1) Two members of the House of Representatives
            appointed by the Speaker of the House of
            Representatives, one of whom shall be appointed upon
            the recommendation of the Majority Leader and one of
            whom shall be appointed upon the recommendation of the
            Minority Leader, and who shall serve as ex officio,
            nonvoting members.
                (2) Two members of the Senate, appointed by the
            President pro tempore, one of whom shall be appointed
            upon the recommendation of the Majority Leader and one
            of whom shall be appointed upon the recommendation of
            the Minority Leader, and who shall serve as ex officio,
            nonvoting members.
                (3) Secretary of State.
                (4) Secretary of Education.
                (5) Secretary of Treasury.
                (6) Six members to be appointed by the President
            from among individuals in the nongovernmental sector
            who have academic excellence or experience in the
            fields of concentration specified in section 202(1)(A)
            or a general knowledge of Vietnam, not less than three
            of whom shall be drawn from academic life.
        (b) Rotation of Membership.--(1) The term of office of each
    member appointed under subsection (a)(6) shall be 3 years,
    except that of the members initially appointed under that
    subsection, two shall serve for terms of one year, two shall
    serve for terms of two years, and two shall serve for terms of
    three years.
        (2) A member of Congress appointed under subsection (a)(1)
    or (2) shall not serve as a member of the Board for more than a
    total of six years.
        (c) Chair.--The Board shall elect one of the members
    appointed under subsection (a)(6) to serve as Chair.
        (d) Meetings.--The Board shall meet upon the call of the
    Chair but not less frequently than twice each year. A majority
    of the voting members of the Board shall constitute a quorum.
        (e) Duties.--The Board shall--
                (1) select the individuals who will be eligible to
            serve as Fellows; and
                (2) provide overall supervision and direction of
            the Foundation.
        (f) Compensation.--
                (1) In general.--Except as provided in paragraph
            (2), each member of the Board shall serve without
            compensation, and members who are officers or employees
            of the United States shall serve without compensation
            in addition to that received for their services as
            officers or employees of the United States.
                (2) Travel expenses.--The members of the Board
            shall be allowed travel expenses, including per diem in
            lieu of subsistence, at rates authorized for employees
            of agencies under subchapter I of chapter 57 of title
            5, United States Code, while away from their homes or
            regular places of business in the performance of
            service for the Board.

    SEC. 206. FELLOWSHIP PROGRAM.

        (a) Award of Fellowships.--
                (1) In general.--To carry out the purposes of this
            title, the Foundation shall award fellowships to--
                        (A) Vietnamese nationals to study at
                    institutions of higher education in the United
                    States at graduate and post-graduate levels in
                    the following fields: physical sciences,
                    natural sciences, mathematics, environmental
                    sciences, medicine, technology, and computer
                    sciences; and
                        (B) United States citizens to teach in
                    Vietnam in appropriate Vietnamese institutions
                    in the fields of study described in
                    subparagraph (A).
                (2) Special emphasis on scientific and technical
            vocabulary in english.--Fellowships awarded under
            paragraph (1) may include funding for the study of
            scientific and technical vocabulary in English.
        (b) Criteria for Selection.--Fellowships under this title
    shall be awarded to persons who meet the minimum criteria
    established by the Foundation, including the following:
                (1) Vietnamese nationals.--Vietnamese candidates
            for fellowships shall have basic English proficiency
            and must have the ability to meet the criteria for
            admission into graduate or post-graduate programs in
            United States institutions of higher learning.
                (2) United states citizen teachers.--American
            teaching candidates shall be highly competent in their
            fields and be experienced and proficient teachers.
        (c) Implementation.--The Foundation may provide, directly
    or by contract, for the conduct of nationwide competition for
    the purpose of selecting recipients of fellowships awarded
    under this section.
        (d) Authority To Award Fellowships on a Matching Basis.--
    The Foundation may require, as a condition of the availability
    of funds for the award of a fellowship under this title, that
    an institution of higher education make available funds for
    such fellowship on a matching basis.
        (e) Fellowship Conditions.--A person awarded a fellowship
    under this title may receive payments authorized under this
    title only during such periods as the Foundation finds that the
    person is maintaining satisfactory proficiency and devoting
    full time to study or teaching, as appropriate, and is not
    engaging in gainful employment other than employment approved
    by the Foundation pursuant to regulations of the Board.
        (f) Funding.--
                (1) Fiscal year 2001.--
                        (A) Authorization of appropriations.--There
                    are authorized to be appropriated to the
                    Foundation $5,000,000 for fiscal year 2001 to
                    carry out the activities of the Foundation.
                        (B) Availability of funds.--Amounts
                    appropriated pursuant to subparagraph (A) are
                    authorized to remain available until expended.
                (2) Fiscal year 2002 and subsequent fiscal years.--
            Effective October 1, 2001, the Foundation shall utilize
            funds transferred to the Foundation under section 207.

    SEC. 207. VIETNAM DEBT REPAYMENT FUND.

        (a) Establishment.--Notwithstanding any other provision of
    law, there is established in the Treasury a separate account
    which shall be known as the Vietnam Debt Repayment Fund (in
    this subsection referred to as the ``Fund'').
        (b) Deposits.--There shall be deposited as offsetting
    receipts into the Fund all payments (including interest
    payments) made by the Socialist Republic of Vietnam under the
    United States-Vietnam debt agreement.
        (c) Availability of the Funds.--
                (1) Fiscal year limitation.--Beginning with fiscal
            year 2002, and each subsequent fiscal year through
            fiscal year 2018, $5,000,000 of the amounts deposited
            into the Fund (or accrued interest) each fiscal year
            shall be available to the Foundation, without fiscal
            year limitation, under paragraph (2).
                (2) Disbursement of funds.--The Secretary of the
            Treasury, at least on a quarterly basis, shall transfer
            to the Foundation amounts allotted to the Foundation
            under paragraph (1) for the purpose of carrying out its
            activities.
                (3) Transfer of excess funds to miscellaneous
            receipts.--Beginning with fiscal year 2002, and each
            subsequent fiscal year through fiscal year 2018, the
            Secretary of the Treasury shall withdraw from the Fund
            and deposit in the Treasury of the United States as
            miscellaneous receipts all moneys in the Fund in excess
            of amounts made available to the Foundation under
            paragraph (1).
        (d) Annual Report.--The Board shall prepare and submit
    annually to Congress statements of financial condition of the
    Fund, including the beginning balance, receipts, refunds to
    appropriations, transfers to the general fund, and the ending
    balance.

    SEC. 208. FOUNDATION PERSONNEL MATTERS.

        (a) Appointment by Board.--There shall be an Executive
    Secretary of the Foundation who shall be appointed by the Board
    without regard to the provisions of title 5, United States
    Code, or any regulation thereunder, governing appointment in
    the competitive service. The Executive Director shall be the
    Chief Executive Officer of the Foundation and shall carry out
    the functions of the Foundation subject to the supervision and
    direction of the Board. The Executive Director shall carry out
    such other functions consistent with the provisions of this
    title as the Board shall prescribe. The decision to employ or
    terminate an Executive Director shall be made by an affirmative
    vote of at least 6 of the 9 voting members of the Board.
        (b) Professional Staff.--The Executive Director shall hire
    Foundation staff on the basis of professional and nonpartisan
    qualifications.
        (c) Experts and Consultants.--The Executive Director may
    procure temporary and intermittent services of experts and
    consultants as are necessary to the extent authorized by
    section 3109 of title 5, United States Code to carry out the
    purposes of the Foundation.
        (d) Compensation.--The Board may fix the compensation of
    the Executive Director and other personnel without regard to
    the provisions of chapter 51 and subchapter III of chapter 53
    of title V, United States Code, relating to classification of
    positions and General Schedule pay rates, except that the rate
    of pay for the Executive Director and other personnel may not
    exceed the rate payable for level V of the Executive Schedule
    under section 5316 of such title.

    SEC. 209. ADMINISTRATIVE PROVISIONS.

        (a) In General.--In order to carry out this title, the
    Foundation may--
                (1) prescribe such regulations as it considers
            necessary governing the manner in which its functions
            shall be carried out;
                (2) receive money and other property donated,
            bequeathed, or devised, without condition or
            restriction other than it be used for the purposes of
            the Foundation, and to use, sell, or otherwise dispose
            of such property for the purpose of carrying out its
            functions;
                (3) accept and use the services of voluntary and
            noncompensated personnel;
                (4) enter into contracts or other arrangements, or
            make grants, to carry out the provisions of this title,
            and enter into such contracts or other arrangements, or
            make such grants, with the concurrence of a majority of
            the members of the Board, without performance or other
            bonds and without regard to section 3709 of the Revised
            Statutes (41 U.S.C. 5);
                (5) rent office space in the District of Columbia;
            and
                (6) make other necessary expenditures.
        (b) Annual Report.--The Foundation shall submit to the
    President and to the Committee on Foreign Relations of the
    Senate and the Committee on International Relations of the
    House of Representatives an annual report of its operations
    under this title.

    SEC. 210. TERMINATION.

        (a) In General.--The Foundation may not award any new
    fellowship, or extend any existing fellowship, after September
    30, 2016.
        (b) Abolishment.--Effective 120 days after the expiration
    of the last fellowship in effect under this title, the
    Foundation is abolished.

           TITLE III--COLORADO UTE SETTLEMENT ACT AMENDMENTS OF 2000

    SECTION 301. SHORT TITLE; FINDINGS; DEFINITIONS.

        (a) Short Title.--This title may be cited as the ``Colorado
    Ute Settlement Act Amendments of 2000''.
        (b) Findings.--Congress makes the following findings:
                (1) In order to provide for a full and final
            settlement of the claims of the Colorado Ute Indian
            Tribes on the Animas and La Plata Rivers, the Tribes,
            the State of Colorado, and certain of the non-Indian
            parties to the Agreement have proposed certain
            modifications to the Colorado Ute Indian Water Rights
            Settlement Act of 1988 (Public Law 100-585; 102 Stat.
            2973).
                (2) The claims of the Colorado Ute Indian Tribes on
            all rivers in Colorado other than the Animas and La
            Plata Rivers have been settled in accordance with the
            provisions of the Colorado Ute Indian Water Rights
            Settlement Act of 1988 (Public Law 100-585; 102 Stat.
            2973).
                (3) The Indian and non-Indian communities of
            southwest Colorado and northwest New Mexico will be
            benefited by a settlement of the tribal claims on the
            Animas and La Plata Rivers that provides the Tribes
            with a firm water supply without taking water away from
            existing uses.
                (4) The Agreement contemplated a specific timetable
            for the delivery of irrigation and municipal and
            industrial water and other benefits to the Tribes from
            the Animas-La Plata Project, which timetable has not
            been met. The provision of irrigation water can not
            presently be satisfied under the current implementation
            of the Federal Water Pollution Control Act (33 U.S.C.
            1251 et seq.) and the Endangered Species Act of 1973
            (16 U.S.C. 1531 et seq.).
                (5) In order to meet the requirements of the
            Endangered Species Act of 1973 (16 U.S.C. 1531 et
            seq.), and in particular the various biological
            opinions issued by the Fish and Wildlife Service, the
            amendments made by this title are needed to provide for
            a significant reduction in the facilities and water
            supply contemplated under the Agreement.
                (6) The substitute benefits provided to the Tribes
            under the amendments made by this title, including the
            waiver of capital costs and the provisions of funds for
            natural resource enhancement, result in a settlement
            that provides the Tribes with benefits that are
            equivalent to those that the Tribes would have received
            under the Colorado Ute Indian Water Rights Settlement
            Act of 1988 (Public Law 100-585; 102 Stat. 2973).
                (7) The requirement that the Secretary of the
            Interior comply with the National Environmental Policy
            Act of 1969 (42 U.S.C. 4321 et seq.) and other national
            environmental laws before implementing the proposed
            settlement will ensure that the satisfaction of the
            tribal water rights is accomplished in an
            environmentally responsible fashion.
                (8) In considering the full range of alternatives
            for satisfying the water rights claims of the Southern
            Ute Indian Tribe and Ute Mountain Ute Indian Tribe,
            Congress has held numerous legislative hearings and
            deliberations, and reviewed the considerable record
            including the following documents:
                        (A) The Final EIS No. INT-FES-80-18, dated
                    July 1, 1980.
                        (B) The Draft Supplement to the FES No.
                    INT-DES-92-41, dated October 13, 1992.
                        (C) The Final Supplemental to the FES No.
                    96-23, dated April 26, 1996;
                        (D) The Draft Supplemental EIS, dated
                    January 14, 2000.
                        (E) The Final Supplemental EIS, dated July
                    2000.
                        (F) The Record of Decision for the
                    Settlement of the Colorado Ute Indian Waters,
                    September 25, 2000.
                (9) In the Record of Decision referred to in
            paragraph (8)(F), the Secretary determined that the
            preferred alternative could only proceed if Congress
            amended the Colorado Ute Indian Water Rights Settlement
            Act of 1988 (Public Law 100-585; 102 Stat. 2973) so as
            to satisfy the Tribal water rights claim through the
            construction of the features authorized by this title.
            The amendments to the Colorado Ute Indian Water Rights
            Settlement Act of 1988 set forth in this title will
            provide the Ute Tribes with substitute benefits
            equivalent to those that the Tribes would have received
            under the Colorado Ute Indian Water Rights Settlement
            Act of 1988, in a manner consistent with paragraph (8)
            and the Federal Government's trust obligation.
                (10) Based upon paragraph (8), it is the intent of
            Congress to enact legislation that implements the
            Record of Decision referred to in paragraph (8)(F).
        (c) Definitions.--In this title:
                (1) Agreement.--The term ``Agreement'' has the
            meaning given that term in section 3(1) of the Colorado
            Ute Indian Water Rights Settlement Act of 1988 (Public
            Law 100-585; 102 Stat. 2973).
                (2) Animas-la plata project.--The term ``Animas-La
            Plata Project'' has the meaning given that term in
            section 3(2) of the Colorado Ute Indian Water Rights
            Settlement Act of 1988 (Public Law 100-585; 102 Stat.
            2973).
                (3) Dolores project.--The term ``Dolores Project''
            has the meaning given that term in section 3(3) of the
            Colorado Ute Indian Water Rights Settlement Act of 1988
            (Public Law 100-585; 102 Stat. 2974).
                (4) Tribe; tribes.--The term ``Tribe'' or
            ``Tribes'' has the meaning given that term in section
            3(6) of the Colorado Ute Indian Water Rights Settlement
            Act of 1988 (Public Law 100-585; 102 Stat. 2974).

    SEC. 302. AMENDMENTS TO SECTION 6 OF THE COLORADO UTE INDIAN WATER
                        RIGHTS SETTLEMENT ACT OF 1988.

        Subsection (a) of section 6 of the Colorado Ute Indian
    Water Rights Settlement Act of 1988 (Public Law 100-585; 102
    Stat. 2975) is amended to read as follows:
        ``(a) Reservoir; Municipal and Industrial Water.--
                ``(1) Facilities.--
                        ``(A) In general.--After the date of
                    enactment of this subsection, but prior to
                    January 1, 2005, or the date established in the
                    Amended Final Decree described in section
                    18(c), the Secretary, in order to settle the
                    outstanding claims of the Tribes on the Animas
                    and La Plata Rivers, acting through the Bureau
                    of Reclamation, is specifically authorized to--
                                ``(i) complete construction of, and
                            operate and maintain, a reservoir, a
                            pumping plant, a reservoir inlet
                            conduit, and appurtenant facilities
                            with sufficient capacity to divert and
                            store water from the Animas River to
                            provide for an average annual depletion
                            of 57,100 acre-feet of water to be used
                            for a municipal and industrial water
                            supply, which facilities shall--
                                        ``(I) be designed and
                                    operated in accordance with the
                                    hydrologic regime necessary for
                                    the recovery of the endangered
                                    fish of the San Juan River as
                                    determined by the San Juan
                                    River Recovery Implementation
                                    Program;
                                        ``(II) be operated in
                                    accordance with the Animas-La
                                    Plata Project Compact as
                                    approved by Congress in Public
                                    Law 90-537;
                                        ``(III) include an inactive
                                    pool of an appropriate size to
                                    be determined by the Secretary
                                    following the completion of
                                    required environmental
                                    compliance activities; and
                                        ``(IV) include those
                                    recreation facilities
                                    determined to be appropriate by
                                    agreement between the State of
                                    Colorado and the Secretary that
                                    shall address the payment of
                                    any of the costs of such
                                    facilities by the State of
                                    Colorado in addition to the
                                    costs described in paragraph
                                    (3); and
                                ``(ii) deliver, through the use of
                            the project components referred to in
                            clause (i), municipal and industrial
                            water allocations--
                                        ``(I) with an average
                                    annual depletion not to exceed
                                    16,525 acre-feet of water, to
                                    the Southern Ute Indian Tribe
                                    for its present and future
                                    needs;
                                        ``(II) with an average
                                    annual depletion not to exceed
                                    16,525 acre-feet of water, to
                                    the Ute Mountain Ute Indian
                                    Tribe for its present and
                                    future needs;
                                        ``(III) with an average
                                    annual depletion not to exceed
                                    2,340 acre-feet of water, to
                                    the Navajo Nation for its
                                    present and future needs;
                                        ``(IV) with an average
                                    annual depletion not to exceed
                                    10,400 acre-feet of water, to
                                    the San Juan Water Commission
                                    for its present and future
                                    needs;
                                        ``(V) with an average
                                    annual depletion of an amount
                                    not to exceed 2,600 acre-feet
                                    of water, to the Animas-La
                                    Plata Conservancy District for
                                    its present and future needs;
                                        ``(VI) with an average
                                    annual depletion of an amount
                                    not to exceed 5,230 acre-feet
                                    of water, to the State of
                                    Colorado for its present and
                                    future needs; and
                                        ``(VII) with an average
                                    annual depletion of an amount
                                    not to exceed 780 acre-feet of
                                    water, to the La Plata
                                    Conservancy District of New
                                    Mexico for its present and
                                    future needs.
                        ``(B) Applicability of other federal law.--
                    The responsibilities of the Secretary described
                    in subparagraph (A) are subject to the
                    requirements of Federal laws related to the
                    protection of the environment and otherwise
                    applicable to the construction of the proposed
                    facilities, including the National
                    Environmental Policy Act of 1969 (42 U.S.C.
                    4321 et seq.), the Clean Water Act (42 U.S.C.
                    7401 et seq.), and the Endangered Species Act
                    of 1973 (16 U.S.C. 1531 et seq.). Nothing in
                    this Act shall be construed to predetermine or
                    otherwise affect the outcome of any analysis
                    conducted by the Secretary or any other Federal
                    official under applicable laws.
                        ``(C) Limitation.--
                                ``(i) In general.--If constructed,
                            the facilities described in
                            subparagraph (A) shall constitute the
                            Animas-La Plata Project. Construction
                            of any other project features
                            authorized by Public Law 90-537 shall
                            not be commenced without further
                            express authorization from Congress.
                                ``(ii) Contingency in
                            application.--If the facilities
                            described in subparagraph (A) are not
                            constructed and operated, clause (i)
                            shall not take effect.
                ``(2) Tribal construction costs.--Construction
            costs allocable to the facilities that are required to
            deliver the municipal and industrial water allocations
            described in subclauses (I), (II) and (III) of
            paragraph (1)(A)(ii) shall be nonreimbursable to the
            United States.
                ``(3) Nontribal water capital obligations.--
                        ``(A) In general.--Under the provisions of
                    section 9 of the Act of August 4, 1939 (43
                    U.S.C. 485h), the nontribal municipal and
                    industrial water capital repayment obligations
                    for the facilities described in paragraph
                    (1)(A)(i) may be satisfied upon the payment in
                    full of the nontribal water capital obligations
                    prior to the initiation of construction. The
                    amount of the obligations described in the
                    preceding sentence shall be determined by
                    agreement between the Secretary of the Interior
                    and the entity responsible for such repayment
                    as to the appropriate reimbursable share of the
                    construction costs allocated to that entity's
                    municipal water storage. Such repayment shall
                    be consistent with Federal reclamation law,
                    including the Colorado River Storage Project
                    Act of 1956 (43 U.S.C. 620 et seq.). Such
                    agreement shall take into account the fact that
                    the construction of certain project facilities,
                    including those facilities required to provide
                    irrigation water supplies from the Animas-La
                    Plata Project, is not authorized under
                    paragraph (1)(A)(i) and no costs associated
                    with the design or development of such
                    facilities, including costs associated with
                    environmental compliance, shall be allocable to
                    the municipal and industrial users of the
                    facilities authorized under such paragraph.
                        ``(B) Nontribal repayment obligation
                    subject to final cost allocation.--The
                    nontribal repayment obligation set forth in
                    subparagraph (A) shall be subject to a final
                    cost allocation by the Secretary upon project
                    completion. In the event that the final cost
                    allocation indicates that additional repayment
                    is warranted based on the applicable entity's
                    share of project water storage and
                    determination of overall reimbursable cost,
                    that entity may elect to enter into a new
                    agreement to make the additional payment
                    necessary to secure the full water supply
                    identified in paragraph (1)(A)(ii). If the
                    repayment entity elects not to enter into a new
                    agreement, the portion of project storage
                    relinquished by such election shall be
                    available to the Secretary for allocation to
                    other project purposes. Additional repayment
                    shall only be warranted for reasonable and
                    unforeseen costs associated with project
                    construction as determined by the Secretary in
                    consultation with the relevant repayment
                    entities.
                        ``(C) Report.--Not later than April 1,
                    2001, the Secretary shall report to Congress on
                    the status of the cost-share agreements
                    contemplated in subparagraph (A). In the event
                    that no agreement is reached with either the
                    Animas-La Plata Conservancy District or the
                    State of Colorado for the water allocations set
                    forth in subclauses (V) and (VI) of paragraph
                    (1)(A)(ii), those allocations shall be
                    reallocated equally to the Colorado Ute Tribes.
                ``(4) Tribal water allocations.--
                        ``(A) In general.--With respect to
                    municipal and industrial water allocated to a
                    Tribe from the Animas-La Plata Project or the
                    Dolores Project, until that water is first used
                    by a Tribe or used pursuant to a water use
                    contract with the Tribe, the Secretary shall
                    pay the annual operation, maintenance, and
                    replacement costs allocable to that municipal
                    and industrial water allocation of the Tribe.
                        ``(B) Treatment of costs.--A Tribe shall
                    not be required to reimburse the Secretary for
                    the payment of any cost referred to in
                    subparagraph (A).
                ``(5) Repayment of pro rata share.--Upon a Tribe's
            first use of an increment of a municipal and industrial
            water allocation described in paragraph (4), or the
            Tribe's first use of such water pursuant to the terms
            of a water use contract--
                        ``(A) repayment of that increment's pro
                    rata share of those allocable construction
                    costs for the Dolores Project shall be made by
                    the Tribe; and
                        ``(B) the Tribe shall bear a pro rata share
                    of the allocable annual operation, maintenance,
                    and replacement costs of the increment as
                    referred to in paragraph (4).''.

    SEC. 303. MISCELLANEOUS.

        The Colorado Ute Indian Water Rights Settlement Act of 1988
    (Public Law 100-585; 102 Stat. 2973) is amended by adding at
    the end the following:

    ``SEC. 15. NEW MEXICO AND NAVAJO NATION WATER
                        MATTERS.

        ``(a) Assignment of Water Permit.--Upon the request of the
    State Engineer of the State of New Mexico, the Secretary shall,
    as soon as practicable, in a manner consistent with applicable
    law, assign, without consideration, to the New Mexico Animas-La
    Plata Project beneficiaries or to the New Mexico Interstate
    Stream Commission in accordance with the request of the State
    Engineer, the Department of the Interior's interest in New
    Mexico State Engineer Permit Number 2883, dated May 1, 1956, in
    order to fulfill the New Mexico non-Navajo purposes of the
    Animas-La Plata Project, so long as the permit assignment does
    not affect the application of the Endangered Species Act of
    1973 (16 U.S.C. 1531 et seq.) to the use of the water involved.
        ``(b) Navajo Nation Municipal Pipeline.--The Secretary is
    specifically authorized to construct a water line to augment
    the existing system that conveys the municipal water supplies,
    in an amount not less than 4,680 acre-feet per year, to the
    Navajo Indian Reservation at or near Shiprock, New Mexico. The
    Secretary shall comply with all applicable environmental laws
    with respect to such water line. Construction costs allocated
    to the Navajo Nation for such water line shall be
    nonreimbursable to the United States.
        ``(c) Protection of Navajo Water Claims.--Nothing in this
    Act, including the permit assignment authorized by subsection
    (a), shall be construed to quantify or otherwise adversely
    affect the water rights and the claims of entitlement to water
    of the Navajo Nation.

    ``SEC. 16. RESOURCE FUNDS.

        ``(a) Authorization of Appropriations.--There is authorized
    to be appropriated to carry out this section, $8,000,000 for
    each of fiscal years 2002 through 2006. Not later than 60 days
    after amounts are appropriated and available to the Secretary
    for a fiscal year under this paragraph, the Secretary shall
    make a payment to each of the Tribal Resource Funds established
    under subsection (b). Each such payment shall be equal to 50
    percent of the amount appropriated for the fiscal year
    involved.
        ``(b) Funds.--The Secretary shall establish a--
                ``(1) Southern Ute Tribal Resource Fund; and
                ``(2) Ute Mountain Ute Tribal Resource Fund.
        ``(c) Tribal Development.--
                ``(1) Investment.--The Secretary shall, in the
            absence of an approved tribal investment plan provided
            for under paragraph (2), invest the amount in each
            Tribal Resource Fund established under subsection (b)
            in accordance with the Act entitled, `An Act to
            authorize the deposit and investment of Indian funds'
            approved June 24, 1938 (25 U.S.C. 162a). With the
            exception of the funds referred to in paragraph
            (3)(B)(i), the Secretary shall disburse, at the request
            of a Tribe, the principal and income in its Resource
            Fund, or any part thereof, in accordance with a
            resource acquisition and enhancement plan approved
            under paragraph (3).
                ``(2) Investment plan.--
                        ``(A) In general.--In lieu of the
                    investment provided for in paragraph (1), a
                    Tribe may submit a tribal investment plan
                    applicable to all or part of the Tribe's Tribal
                    Resource Fund, except with respect to the funds
                    referred to in paragraph (3)(B)(i).
                        ``(B) Approval.--Not later than 60 days
                    after the date on which an investment plan is
                    submitted under subparagraph (A), the Secretary
                    shall approve such investment plan if the
                    Secretary finds that the plan is reasonable and
                    sound. If the Secretary does not approve such
                    investment plan, the Secretary shall set forth
                    in writing and with particularity the reasons
                    for such disapproval. If such investment plan
                    is approved by the Secretary, the Tribal
                    Resource Fund involved shall be disbursed to
                    the Tribe to be invested by the Tribe in
                    accordance with the approved investment plan,
                    subject to subsection (d).
                        ``(C) Compliance.--The Secretary may take
                    such steps as the Secretary determines to be
                    necessary to monitor the compliance of a Tribe
                    with an investment plan approved under
                    subparagraph (B). The United States shall not
                    be responsible for the review, approval, or
                    audit of any individual investment under the
                    plan. The United States shall not be directly
                    or indirectly liable with respect to any such
                    investment, including any act or omission of
                    the Tribe in managing or investing such funds.
                        ``(D) Economic development plan.--The
                    principal and income derived from tribal
                    investments under an investment plan approved
                    under subparagraph (B) shall be subject to the
                    provisions of this section and shall be
                    expended only in accordance with an economic
                    development plan approved under paragraph
                    (3)(B).
                ``(3) Economic development plan.--
                        ``(A) In general.--Each Tribe shall submit
                    to the Secretary a resource acquisition and
                    enhancement plan for all or any portion of its
                    Tribal Resource Fund.
                        ``(B) Approval.--Not later than 60 days
                    after the date on which a plan is submitted
                    under subparagraph (A), the Secretary shall
                    approve such plan if it is consistent with the
                    following requirements:
                                ``(i) With respect to at least \3/
                            4\ of the funds appropriated pursuant
                            to this section and consistent with the
                            long-standing practice of the Tribes
                            and other local entities and
                            communities to work together to use
                            their respective water rights and
                            resources for mutual benefit, at least
                            \3/4\ of the funds appropriated
                            pursuant to this section shall be
                            utilized to enhance, restore, and
                            utilize the Tribes' natural resources
                            in partnership with adjacent non-Indian
                            communities or entities in the area.
                                ``(ii) The plan must be reasonably
                            related to the protection, acquisition,
                            enhancement, or development of natural
                            resources for the benefit of the Tribe
                            and its members.
                                ``(iii) Notwithstanding any other
                            provision of law and in order to ensure
                            that the Federal Government fulfills
                            the objectives of the Record of
                            Decision referred to in section
                            301(b)(8)(F) of the Colorado Ute
                            Settlement Act Amendments of 2000 by
                            requiring that the funds referred to in
                            clause (i) are expended directly by
                            employees of the Federal Government,
                            the Secretary acting through the Bureau
                            of Reclamation shall expend not less
                            than \1/3\ of the funds referred to in
                            clause (i) for municipal or rural water
                            development and not less than \2/3\ of
                            the funds referred to such clause for
                            resource acquisition and enhancement.
                        ``(C) Modification.--Subject to the
                    provisions of this Act and the approval of the
                    Secretary, each Tribe may modify a plan
                    approved under subparagraph (B).
                        ``(D) Liability.--The United States shall
                    not be directly or indirectly liable for any
                    claim or cause of action arising from the
                    approval of a plan under this paragraph, or
                    from the use and expenditure by the Tribe of
                    the principal or interest of the Funds.
        ``(d) Limitation on Per Capita Distributions.--No part of
    the principal contained in the Tribal Resource Fund, or of the
    income accruing to such funds, or the revenue from any water
    use contract, shall be distributed to any member of either
    Tribe on a per capita basis.
        ``(e) Limitation on Setting Aside Final Consent Decree.--
    Neither the Tribes nor the United States shall have the right
    to set aside the final consent decree solely because the
    requirements of subsection (c) are not complied with or
    implemented.
        ``(f) Limitation on Disbursement of Tribal Resource
    Funds.--Any funds appropriated under this section shall be
    placed into the Southern Ute Tribal Resource Fund and the Ute
    Mountain Ute Tribal Resource Fund in the Treasury of the United
    States but shall not be available for disbursement under this
    section until the final settlement of the tribal claims as
    provided in section 18. The Secretary of the Interior may, in
    the Secretary's sole discretion, authorize the disbursement of
    funds prior to the final settlement in the event that the
    Secretary determines that substantial portions of the
    settlement have been completed. In the event that the funds are
    not disbursed under the terms of this section by December 31,
    2012, such funds shall be deposited in the general fund of the
    Treasury.

    ``SEC. 17. COLORADO UTE SETTLEMENT FUND.

        ``(a) Establishment of Fund.--There is hereby established
    within the Treasury of the United States a fund to be known as
    the `Colorado Ute Settlement Fund'.
        ``(b) Authorization of Appropriations.--There is authorized
    to be appropriated to the Colorado Ute Settlement Fund such
    funds as are necessary to complete the construction of the
    facilities described in sections 6(a)(1)(A) and 15(b) within 7
    years of the date of enactment of this section. Such funds are
    authorized to be appropriated for each of the first 5 fiscal
    years beginning with the first full fiscal year following the
    date of enactment of this section.

    ``SEC. 18. FINAL SETTLEMENT.

        ``(a) In General.--The construction of the facilities
    described in section 6(a)(1)(A), the allocation of the water
    supply from those facilities to the Tribes as described in that
    section, and the provision of funds to the Tribes in accordance
    with section 16 and the issuance of an amended final consent
    decree as contemplated in subsection (c) shall constitute final
    settlement of the tribal claims to water rights on the Animas
    and La Plata Rivers in the State of Colorado.
        ``(b) Statutory Construction.--Nothing in this section
    shall be construed to affect the right of the Tribes to water
    rights on the streams and rivers described in the Agreement,
    other than the Animas and La Plata Rivers, to receive the
    amounts of water dedicated to tribal use under the Agreement,
    or to acquire water rights under the laws of the State of
    Colorado.
        ``(c) Action by the Attorney General.--The Attorney General
    shall file with the District Court, Water Division Number 7, of
    the State of Colorado, such instruments as may be necessary to
    request the court to amend the final consent decree to provide
    for the amendments made to this Act under the Colorado Ute
    Indian Water Rights Settlement Act Amendments of 2000. The
    amended final consent decree shall specify terms and conditions
    to provide for an extension of the current January 1, 2005,
    deadline for the Tribes to commence litigation of their
    reserved rights claims on the Animas and La Plata Rivers.

    ``SEC. 19. STATUTORY CONSTRUCTION; TREATMENT OF CERTAIN FUNDS.

        ``(a) In General.--Nothing in the amendments made by the
    Colorado Ute Settlement Act Amendments of 2000 shall be
    construed to affect the applicability of any provision of this
    Act.
        ``(b) Treatment of Uncommitted Portion of Cost-Sharing
    Obligation.--The uncommitted portion of the cost-sharing
    obligation of the State of Colorado referred to in section
    6(a)(3) shall be made available, upon the request of the State
    of Colorado, to the State of Colorado after the date on which
    payment is made of the amount specified in that section.''.

                                    TITLE IV

    SECTION 401. DESIGNATION OF AMERICAN MUSEUM OF SCIENCE AND ENERGY.

        (a) In General.--The Museum--
                (1) is designated as the ``American Museum of
            Science and Energy''; and
                (2) shall be the official museum of science and
            energy of the United States.
        (b) References.--Any reference in a law, map, regulation,
    document, paper, or other record of the United States to the
    Museum is deemed to be a reference to the ``American Museum of
    Science and Energy''.
        (c) Property of the United States.--
                (1) In general.--The name ``American Museum of
            Science and Energy'' is declared the property of the
            United States.
                (2) Use.--The Museum shall have the sole right
            throughout the United States and its possessions to
            have and use the name ``American Museum of Science and
            Energy''.
                (3) Effect on other rights.--This subsection shall
            not be construed to conflict or interfere with
            established or vested rights.

    SEC. 402. AUTHORITY.

        To carry out the activities of the Museum, the Secretary
    may--
                (1) accept and dispose of any gift, devise, or
            bequest of services or property, real or personal, that
            is--
                        (A) designated in a written document by the
                    person making the gift, devise, or bequest as
                    intended for the Museum; and
                        (B) determined by the Secretary to be
                    suitable and beneficial for use by the Museum;
                (2) operate a retail outlet on the premises of the
            Museum for the purpose of selling or distributing items
            (including mementos, food, educational materials,
            replicas, and literature) that are--
                        (A) relevant to the contents of the Museum;
                    and
                        (B) informative, educational, and tasteful;
                (3) collect reasonable fees where feasible and
            appropriate;
                (4) exhibit, perform, display, and publish
            materials and information of or relating to the Museum
            in any media or place;
                (5) consistent with guidelines approved by the
            Secretary, lease space on the premises of the Museum at
            reasonable rates and for uses consistent with such
            guidelines; and
                (6) use the proceeds of activities authorized under
            this section to pay the costs of the Museum.

    SEC. 403. MUSEUM VOLUNTEERS.

        (a) Authority To Use Volunteers.--The Secretary may
    recruit, train, and accept the services of individuals or
    entities as volunteers for services or activities related to
    the Museum.
        (b) Status of Volunteers.--
                (1) In general.--Except as provided in paragraph
            (2), service by a volunteer under subsection (a) shall
            not be considered Federal employment.
                (2) Exceptions.--
                        (A) Federal tort claims act.--For purposes
                    of chapter 171 of title 28, United States Code,
                    a volunteer under subsection (a) shall be
                    treated as an employee of the Government (as
                    defined in section 2671 of that title).
                        (B) Compensation for work injuries.--For
                    purposes of subchapter I of chapter 81 of title
                    5, United States Code, a volunteer described in
                    subsection (a) shall be treated as an employee
                    (as defined in section 8101 of title 5, United
                    States Code).
        (c) Compensation.--A volunteer under subsection (a) shall
    serve without pay, but may receive nominal awards and
    reimbursement for incidental expenses, including expenses for a
    uniform or transportation in furtherance of Museum activities.

    SEC. 404. DEFINITIONS.

        For purposes of this Act:
                (1) Museum.--The term ``Museum'' means the museum
            operated by the Secretary of Energy and located at 300
            South Tulane Avenue in Oak Ridge, Tennessee.
                (2) Secretary.--The term ``Secretary'' means the
            Secretary of Energy or a designated representative of
            the Secretary.

                    TITLE V--LOWER MISSISSIPPI RIVER REGION

    SEC. 501. SHORT TITLE.

        This title may be cited as the ``Delta Regional Authority
    Act of 2000''.

    SEC. 502. FINDINGS AND PURPOSES.

        (a) Findings.--Congress finds that--
                (1) the lower Mississippi River region (referred to
            in this title as the ``region''), though rich in
            natural and human resources, lags behind the rest of
            the United States in economic growth and prosperity;
                (2) the region suffers from a greater proportion of
            measurable poverty and unemployment than any other
            region of the United States;
                (3) the greatest hope for economic growth and
            revitalization in the region lies in the development of
            transportation infrastructure, creation of jobs,
            expansion of businesses, and development of
            entrepreneurial local economies;
                (4) the economic progress of the region requires an
            adequate transportation and physical infrastructure, a
            skilled and trained workforce, and greater
            opportunities for enterprise development and
            entrepreneurship;
                (5) a concerted and coordinated effort among
            Federal, State, and local agencies, the private sector,
            and nonprofit groups is needed if the region is to
            achieve its full potential for economic development;
                (6) economic development planning on a regional or
            multicounty basis offers the best prospect for
            achieving the maximum benefit from public and private
            investments; and
                (7) improving the economy of the region requires a
            special emphasis on areas of the region that are most
            economically distressed.
        (b) Purposes.--The purposes of this title are--
                (1) to promote and encourage the economic
            development of the region--
                        (A) to ensure that the communities and
                    people in the region have the opportunity for
                    economic development; and
                        (B) to ensure that the economy of the
                    region reaches economic parity with that of the
                    rest of the United States;
                (2) to establish a formal framework for joint
            Federal-State collaboration in meeting and focusing
            national attention on the economic development needs of
            the region;
                (3) to assist the region in obtaining the
            transportation and basic infrastructure, skills
            training, and opportunities for economic development
            that are essential for strong local economies;
                (4) to foster coordination among all levels of
            government, the private sector, and nonprofit groups in
            crafting common regional strategies that will lead to
            broader economic growth;
                (5) to strengthen efforts that emphasize regional
            approaches to economic development and planning;
                (6) to encourage the participation of interested
            citizens, public officials, agencies, and others in
            developing and implementing local and regional plans
            for broad-based economic and community development; and
                (7) to focus special attention on areas of the
            region that suffer from the greatest economic distress.

    SEC. 503. DELTA REGIONAL AUTHORITY.

        The Consolidated Farm and Rural Development Act (7 U.S.C.
    1921 et seq.) is amended by adding at the end the following:

                     ``Subtitle F--Delta Regional Authority

    ``SEC. 382A. DEFINITIONS.

        ``In this subtitle:
                ``(1) Authority.--The term `Authority' means the
            Delta Regional Authority established by section 382B.
                ``(2) Region.--The term `region' means the Lower
            Mississippi (as defined in section 4 of the Delta
            Development Act (42 U.S.C. 3121 note; Public Law 100-
            460)).
                ``(3) Federal grant program.--The term `Federal
            grant program' means a Federal grant program to provide
            assistance in--
                        ``(A) acquiring or developing land;
                        ``(B) constructing or equipping a highway,
                    road, bridge, or facility; or
                        ``(C) carrying out other economic
                    development activities.

    ``SEC. 382B. DELTA REGIONAL AUTHORITY.

        ``(a) Establishment.--
                ``(1) In general.--There is established the Delta
            Regional Authority.
                ``(2) Composition.--The Authority shall be composed
            of--
                        ``(A) a Federal member, to be appointed by
                    the President, with the advice and consent of
                    the Senate; and
                        ``(B) the Governor (or a designee of the
                    Governor) of each State in the region that
                    elects to participate in the Authority.
                ``(3) Cochairpersons.--The Authority shall be
            headed by--
                        ``(A) the Federal member, who shall serve--
                                ``(i) as the Federal cochairperson;
                            and
                                ``(ii) as a liaison between the
                            Federal Government and the Authority;
                            and
                        ``(B) a State cochairperson, who--
                                ``(i) shall be a Governor of a
                            participating State in the region; and
                                ``(ii) shall be elected by the
                            State members for a term of not less
                            than 1 year.
        ``(b) Alternate Members.--
                ``(1) State alternates.--The State member of a
            participating State may have a single alternate, who
            shall be--
                        ``(A) a resident of that State; and
                        ``(B) appointed by the Governor of the
                    State.
                ``(2) Alternate federal cochairperson.--The
            President shall appoint an alternate Federal
            cochairperson.
                ``(3) Quorum.--A State alternate shall not be
            counted toward the establishment of a quorum of the
            Authority in any instance in which a quorum of the
            State members is required to be present.
                ``(4) Delegation of power.--No power or
            responsibility of the Authority specified in paragraphs
            (2) and (3) of subsection (c), and no voting right of
            any Authority member, shall be delegated to any
            person--
                        ``(A) who is not a Authority member; or
                        ``(B) who is not entitled to vote in
                    Authority meetings.
        ``(c) Voting.--
                ``(1) In general.--A decision by the Authority
            shall require a majority vote of the Authority (not
            including any member representing a State that is
            delinquent under subsection (g)(2)(C)) to be effective.
                ``(2) Quorum.--A quorum of State members shall be
            required to be present for the Authority to make any
            policy decision, including--
                        ``(A) a modification or revision of a
                    Authority policy decision;
                        ``(B) approval of a State or regional
                    development plan; and
                        ``(C) any allocation of funds among the
                    States.
                ``(3) Project and grant proposals.--The approval of
            project and grant proposals shall be--
                        ``(A) a responsibility of the Authority;
                    and
                        ``(B) conducted in accordance with section
                    382I.
                ``(4) Voting by alternate members.--An alternate
            member shall vote in the case of the absence, death,
            disability, removal, or resignation of the Federal or
            State representative for which the alternate member is
            an alternate.
        ``(d) Duties.--The Authority shall--
                ``(1) develop, on a continuing basis, comprehensive
            and coordinated plans and programs to establish
            priorities and approve grants for the economic
            development of the region, giving due consideration to
            other Federal, State, and local planning and
            development activities in the region;
                ``(2) not later than 220 days after the date of
            enactment of this subtitle, establish priorities in a
            development plan for the region (including 5-year
            regional outcome targets);
                ``(3) assess the needs and assets of the region
            based on available research, demonstrations,
            investigations, assessments, and evaluations of the
            region prepared by Federal, State, and local agencies,
            universities, local development districts, and other
            nonprofit groups;
                ``(4) formulate and recommend to the Governors and
            legislatures of States that participate in the
            Authority forms of interstate cooperation;
                ``(5) work with State and local agencies in
            developing appropriate model legislation;
                ``(6)(A) enhance the capacity of, and provide
            support for, local development districts in the region;
            or
                ``(B) if no local development district exists in an
            area in a participating State in the region, foster the
            creation of a local development district;
                ``(7) encourage private investment in industrial,
            commercial, and other economic development projects in
            the region; and
                ``(8) cooperate with and assist State governments
            with economic development programs of participating
            States.
        ``(e) Administration.--In carrying out subsection (d), the
    Authority may--
                ``(1) hold such hearings, sit and act at such times
            and places, take such testimony, receive such evidence,
            and print or otherwise reproduce and distribute a
            description of the proceedings and reports on actions
            by the Authority as the Authority considers
            appropriate;
                ``(2) authorize, through the Federal or State co-
            chairperson or any other member of the Authority
            designated by the Authority, the administration of
            oaths if the Authority determines that testimony should
            be taken or evidence received under oath; and
                ``(3) request from any Federal, State, or local
            department or agency such information as may be
            available to or procurable by the department or agency
            that may be of use to the Authority in carrying out
            duties of the Authority;
                ``(4) adopt, amend, and repeal bylaws and rules
            governing the conduct of Authority business and the
            performance of Authority duties;
                ``(5) request the head of any Federal department or
            agency to detail to the Authority such personnel as the
            Authority requires to carry out duties of the
            Authority, each such detail to be without loss of
            seniority, pay, or other employee status;
                ``(6) request the head of any State department or
            agency or local government to detail to the Authority
            such personnel as the Authority requires to carry out
            duties of the Authority, each such detail to be without
            loss of seniority, pay, or other employee status;
                ``(7) provide for coverage of Authority employees
            in a suitable retirement and employee benefit system
            by--
                        ``(A) making arrangements or entering into
                    contracts with any participating State
                    government; or
                        ``(B) otherwise providing retirement and
                    other employee benefit coverage;
                ``(8) accept, use, and dispose of gifts or
            donations of services or real, personal, tangible, or
            intangible property;
                ``(9) enter into and perform such contracts,
            leases, cooperative agreements, or other transactions
            as are necessary to carry out Authority duties,
            including any contracts, leases, or cooperative
            agreements with--
                        ``(A) any department, agency, or
                    instrumentality of the United States;
                        ``(B) any State (including a political
                    subdivision, agency, or instrumentality of the
                    State); or
                        ``(C) any person, firm, association, or
                    corporation; and
                ``(10) establish and maintain a central office and
            field offices at such locations as the Authority may
            select.
        ``(f) Federal Agency Cooperation.--A Federal agency shall--
                ``(1) cooperate with the Authority; and
                ``(2) provide, on request of the Federal
            cochairperson, appropriate assistance in carrying out
            this subtitle, in accordance with applicable Federal
            laws (including regulations).
        ``(g) Administrative Expenses.--
                ``(1) In general.--Administrative expenses of the
            Authority (except for the expenses of the Federal
            cochairperson, including expenses of the alternate and
            staff of the Federal cochairperson, which shall be paid
            solely by the Federal Government) shall be paid--
                        ``(A) by the Federal Government, in an
                    amount equal to 50 percent of the
                    administrative expenses; and
                        ``(B) by the States in the region
                    participating in the Authority, in an amount
                    equal to 50 percent of the administrative
                    expenses.
                ``(2) State share.--
                        ``(A) In general.--The share of
                    administrative expenses of the Authority to be
                    paid by each State shall be determined by the
                    Authority.
                        ``(B) No federal participation.--The
                    Federal cochairperson shall not participate or
                    vote in any decision under subparagraph (A).
                        ``(C) Delinquent states.--If a State is
                    delinquent in payment of the State's share of
                    administrative expenses of the Authority under
                    this subsection--
                                ``(i) no assistance under this
                            subtitle shall be furnished to the
                            State (including assistance to a
                            political subdivision or a resident of
                            the State); and
                                ``(ii) no member of the Authority
                            from the State shall participate or
                            vote in any action by the Authority.
        ``(h) Compensation.--
                ``(1) Federal cochairperson.--The Federal
            cochairperson shall be compensated by the Federal
            Government at level III of the Executive Schedule in
            subchapter II of chapter 53 of title V, United States
            Code.
                ``(2) Alternate federal cochairperson.--The
            alternate Federal cochairperson--
                        ``(A) shall be compensated by the Federal
                    Government at level V of the Executive Schedule
                    described in paragraph (1); and
                        ``(B) when not actively serving as an
                    alternate for the Federal cochairperson, shall
                    perform such functions and duties as are
                    delegated by the Federal cochairperson.
                ``(3) State members and alternates.--
                        ``(A) In general.--A State shall compensate
                    each member and alternate representing the
                    State on the Authority at the rate established
                    by law of the State.
                        ``(B) No additional compensation.--No State
                    member or alternate member shall receive any
                    salary, or any contribution to or
                    supplementation of salary from any source other
                    than the State for services provided by the
                    member or alternate to the Authority.
                ``(4) Detailed employees.--
                        ``(A) In general.--No person detailed to
                    serve the Authority under subsection (e)(6)
                    shall receive any salary or any contribution to
                    or supplementation of salary for services
                    provided to the Authority from--
                                ``(i) any source other than the
                            State, local, or intergovernmental
                            department or agency from which the
                            person was detailed; or
                                ``(ii) the Authority.
                        ``(B) Violation.--Any person that violates
                    this paragraph shall be fined not more than
                    $5,000, imprisoned not more than 1 year, or
                    both.
                        ``(C) Applicable law.--The Federal
                    cochairperson, the alternate Federal
                    cochairperson, and any Federal officer or
                    employee detailed to duty on the Authority
                    under subsection (e)(5) shall not be subject to
                    subparagraph (A), but shall remain subject to
                    sections 202 through 209 of title 18, United
                    States Code.
                ``(5) Additional personnel.--
                        ``(A) Compensation.--
                                ``(i) In general.--The Authority
                            may appoint and fix the compensation of
                            an executive director and such other
                            personnel as are necessary to enable
                            the Authority to carry out the duties
                            of the Authority.
                                ``(ii) Exception.--Compensation
                            under clause (i) shall not exceed the
                            maximum rate for the Senior Executive
                            Service under section 5382 of title 5,
                            United States Code, including any
                            applicable locality-based comparability
                            payment that may be authorized under
                            section 5304(h)(2)(C) of that title.
                        ``(B) Executive director.--The executive
                    director shall be responsible for--
                                ``(i) the carrying out of the
                            administrative duties of the Authority;
                                ``(ii) direction of the Authority
                            staff; and
                                ``(iii) such other duties as the
                            Authority may assign.
                        ``(C) No federal employee status.--No
                    member, alternate, officer, or employee of the
                    Authority (except the Federal cochairperson of
                    the Authority, the alternate and staff for the
                    Federal cochairperson, and any Federal employee
                    detailed to the Authority under subsection
                    (e)(5)) shall be considered to be a Federal
                    employee for any purpose.
        ``(i) Conflicts of Interest.--
                ``(1) In general.--Except as provided under
            paragraph (2), no State member, alternate, officer, or
            employee of the Authority shall participate personally
            and substantially as a member, alternate, officer, or
            employee of the Authority, through decision, approval,
            disapproval, recommendation, the rendering of advice,
            investigation, or otherwise, in any proceeding,
            application, request for a ruling or other
            determination, contract, claim, controversy, or other
            matter in which, to knowledge of the member, alternate,
            officer, or employee--
                        ``(A) the member, alternate, officer, or
                    employee;
                        ``(B) the spouse, minor child, partner, or
                    organization (other than a State or political
                    subdivision of the State) of the member,
                    alternate, officer, or employee, in which the
                    member, alternate, officer, or employee is
                    serving as officer, director, trustee, partner,
                    or employee; or
                        ``(C) any person or organization with whom
                    the member, alternate, officer, or employee is
                    negotiating or has any arrangement concerning
                    prospective employment;
        has a financial interest.
                ``(2) Disclosure.--Paragraph (1) shall not apply if
            the State member, alternate, officer, or employee--
                        ``(A) immediately advises the Authority of
                    the nature and circumstances of the proceeding,
                    application, request for a ruling or other
                    determination, contract, claim, controversy, or
                    other particular matter presenting a potential
                    conflict of interest;
                        ``(B) makes full disclosure of the
                    financial interest; and
                        ``(C) before the proceeding concerning the
                    matter presenting the conflict of interest,
                    receives a written determination by the
                    Authority that the interest is not so
                    substantial as to be likely to affect the
                    integrity of the services that the Authority
                    may expect from the State member, alternate,
                    officer, or employee.
                ``(3) Violation.--Any person that violates this
            subsection shall be fined not more than $10,000,
            imprisoned not more than 2 years, or both.
        ``(j) Validity of Contracts, Loans, and Grants.--The
    Authority may declare void any contract, loan, or grant of or
    by the Authority in relation to which the Authority determines
    that there has been a violation of any provision under
    subsection (h)(4), subsection (i), or sections 202 through 209
    of title 18, United States Code.

    ``SEC. 382C. ECONOMIC AND COMMUNITY DEVELOPMENT GRANTS.

        ``(a) In General.--The Authority may approve grants to
    States and public and nonprofit entities for projects, approved
    in accordance with section 382I--
                ``(1) to develop the transportation infrastructure
            of the region for the purpose of facilitating economic
            development in the region (except that grants for this
            purpose may only be made to a State or local
            government);
                ``(2) to assist the region in obtaining the job
            training, employment-related education, and business
            development (with an emphasis on entrepreneurship) that
            are needed to build and maintain strong local
            economies;
                ``(3) to provide assistance to severely distressed
            and underdeveloped areas that lack financial resources
            for improving basic public services;
                ``(4) to provide assistance to severely distressed
            and underdeveloped areas that lack financial resources
            for equipping industrial parks and related facilities;
            and
                ``(5) to otherwise achieve the purposes of this
            subtitle.
        ``(b) Funding.--
                ``(1) In general.--Funds for grants under
            subsection (a) may be provided--
                        ``(A) entirely from appropriations to carry
                    out this section;
                        ``(B) in combination with funds available
                    under another Federal or Federal grant program;
                    or
                        ``(C) from any other source.
                ``(2) Priority of funding.--To best build the
            foundations for long-term economic development and to
            complement other Federal and State resources in the
            region, Federal funds available under this subtitle
            shall be focused on the activities in the following
            order or priority:
                        ``(A) Basic public infrastructure in
                    distressed counties and isolated areas of
                    distress.
                        ``(B) Transportation infrastructure for the
                    purpose of facilitating economic development in
                    the region.
                        ``(C) Business development, with emphasis
                    on entrepreneurship.
                        ``(D) Job training or employment-related
                    education, with emphasis on use of existing
                    public educational institutions located in the
                    region.
                ``(3) Federal share in grant programs.--
            Notwithstanding any provision of law limiting the
            Federal share in any grant program, funds appropriated
            to carry out this section may be used to increase a
            Federal share in a grant program, as the Authority
            determines appropriate.

    ``SEC. 382D. SUPPLEMENTS TO FEDERAL GRANT PROGRAMS.

        ``(a) Finding.--Congress finds that certain States and
    local communities of the region, including local development
    districts, may be unable to take maximum advantage of Federal
    grant programs for which the States and communities are
    eligible because--
                ``(1) they lack the economic resources to meet the
            required matching share; or
                ``(2) there are insufficient funds available under
            the applicable Federal grant law authorizing the
            program to meet pressing needs of the region.
        ``(b) Federal Grant Program Funding.--In accordance with
    subsection (c), the Federal cochairperson may use amounts made
    available to carry out this subtitle, without regard to any
    limitations on areas eligible for assistance or authorizations
    for appropriation under any other Act, to fund all or any
    portion of the basic Federal contribution to a project or
    activity under a Federal grant program in the region in an
    amount that is above the fixed maximum portion of the cost of
    the project otherwise authorized by applicable law, but not to
    exceed 90 percent of the costs of the project (except as
    provided in section 382F(b)).
        ``(c) Certification.--
                ``(1) In general.--In the case of any program or
            project for which all or any portion of the basic
            Federal contribution to the project under a Federal
            grant program is proposed to be made under this
            section, no Federal contribution shall be made until
            the Federal official administering the Federal law
            authorizing the contribution certifies that the program
            or project--
                        ``(A) meets the applicable requirements of
                    the applicable Federal grant law; and
                        ``(B) could be approved for Federal
                    contribution under the law if funds were
                    available under the law for the program or
                    project.
                ``(2) Certification by authority.--
                        ``(A) In general.--The certifications and
                    determinations required to be made by the
                    Authority for approval of projects under this
                    subtitle in accordance with section 382I--
                                ``(i) shall be controlling; and
                                ``(ii) shall be accepted by the
                            Federal agencies.
                        ``(B) Acceptance by federal
                    cochairperson.--Any finding, report,
                    certification, or documentation required to be
                    submitted to the head of the department,
                    agency, or instrumentality of the Federal
                    Government responsible for the administration
                    of any Federal grant program shall be accepted
                    by the Federal cochairperson with respect to a
                    supplemental grant for any project under the
                    program.

    ``SEC. 382E. LOCAL DEVELOPMENT DISTRICTS; CERTIFICATION AND
                        ADMINISTRATIVE EXPENSES.

        ``(a) Definition of Local Development District.--In this
    section, the term `local development district' means an entity
    that--
                ``(1) is--
                        ``(A) a planning district in existence on
                    the date of enactment of this subtitle that is
                    recognized by the Economic Development
                    Administration of the Department of Commerce;
                    or
                        ``(B) where an entity described in
                    subparagraph (A) does not exist--
                                ``(i) organized and operated in a
                            manner that ensures broad-based
                            community participation and an
                            effective opportunity for other
                            nonprofit groups to contribute to the
                            development and implementation of
                            programs in the region;
                                ``(ii) governed by a policy board
                            with at least a simple majority of
                            members consisting of elected officials
                            or employees of a general purpose unit
                            of local government who have been
                            appointed to represent the government;
                                ``(iii) certified to the Authority
                            as having a charter or authority that
                            includes the economic development of
                            counties or parts of counties or other
                            political subdivisions within the
                            region--
                                        ``(I) by the Governor of
                                    each State in which the entity
                                    is located; or
                                        ``(II) by the State officer
                                    designated by the appropriate
                                    State law to make the
                                    certification; and
                        ``(iv)(I) a nonprofit incorporated body
                    organized or chartered under the law of the
                    State in which the entity is located;
                        ``(II) a nonprofit agency or
                    instrumentality of a State or local government;
                        ``(III) a public organization established
                    before the date of enactment of this subtitle
                    under State law for creation of multi-
                    jurisdictional, area-wide planning
                    organizations; or
                        ``(IV) a nonprofit association or
                    combination of bodies, agencies, and
                    instrumentalities described in subclauses (I)
                    through (III); and
                ``(2) has not, as certified by the Federal
            cochairperson--
                        ``(A) inappropriately used Federal grant
                    funds from any Federal source; or
                        ``(B) appointed an officer who, during the
                    period in which another entity inappropriately
                    used Federal grant funds from any Federal
                    source, was an officer of the other entity.
        ``(b) Grants to Local Development Districts.--
                ``(1) In general.--The Authority may make grants
            for administrative expenses under this section.
                ``(2) Conditions for grants.--
                        ``(A) Maximum amount.--The amount of any
                    grant awarded under paragraph (1) shall not
                    exceed 80 percent of the administrative
                    expenses of the local development district
                    receiving the grant.
                        ``(B) Maximum period.--No grant described
                    in paragraph (1) shall be awarded to a State
                    agency certified as a local development
                    district for a period greater than 3 years.
                        ``(C) Local share.--The contributions of a
                    local development district for administrative
                    expenses may be in cash or in kind, fairly
                    evaluated, including space, equipment, and
                    services.
        ``(c) Duties of Local Development Districts.--A local
    development district shall--
                ``(1) operate as a lead organization serving
            multicounty areas in the region at the local level; and
                ``(2) serve as a liaison between State and local
            governments, nonprofit organizations (including
            community-based groups and educational institutions),
            the business community, and citizens that--
                        ``(A) are involved in multijurisdictional
                    planning;
                        ``(B) provide technical assistance to local
                    jurisdictions and potential grantees; and
                        ``(C) provide leadership and civic
                    development assistance.

    ``SEC. 382F. DISTRESSED COUNTIES AND AREAS AND NONDISTRESSED COUNTIES.

        ``(a) Designations.--Not later than 90 days after the date
    of enactment of this subtitle, and annually thereafter, the
    Authority, in accordance with such criteria as the Authority
    may establish, shall designate--
                ``(1) as distressed counties, counties in the
            region that are the most severely and persistently
            distressed and underdeveloped and have high rates of
            poverty or unemployment;
                ``(2) as nondistressed counties, counties in the
            region that are not designated as distressed counties
            under paragraph (1); and
                ``(3) as isolated areas of distress, areas located
            in nondistressed counties (as designated under
            paragraph (2)) that have high rates of poverty or
            unemployment.
        ``(b) Distressed Counties.--
                ``(1) In general.--The Authority shall allocate at
            least 75 percent of the appropriations made available
            under section 382M for programs and projects designed
            to serve the needs of distressed counties and isolated
            areas of distress in the region.
                ``(2) Funding limitations.--The funding limitations
            under section 382D(b) shall not apply to a project
            providing transportation or basic public services to
            residents of 1 or more distressed counties or isolated
            areas of distress in the region.
        ``(c) Nondistressed Counties.--
                ``(1) In general.--Except as provided in this
            subsection, no funds shall be provided under this
            subtitle for a project located in a county designated
            as a nondistressed county under subsection (a)(2).
                ``(2) Exceptions.--
                        ``(A) In general.--The funding prohibition
                    under paragraph (1) shall not apply to grants
                    to fund the administrative expenses of local
                    development districts under section 382E(b).
                        ``(B) Multicounty projects.--The Authority
                    may waive the application of the funding
                    prohibition under paragraph (1) to--
                                ``(i) a multicounty project that
                            includes participation by a
                            nondistressed county; or
                                ``(ii) any other type of project;
                    if the Authority determines that the project
                    could bring significant benefits to areas of
                    the region outside a nondistressed county.
                        ``(C) Isolated areas of distress.--For a
                    designation of an isolated area of distress for
                    assistance to be effective, the designation
                    shall be supported--
                                ``(i) by the most recent Federal
                            data available; or
                                ``(ii) if no recent Federal data
                            are available, by the most recent data
                            available through the government of the
                            State in which the isolated area of
                            distress is located.
        ``(d) Transportation and Basic Public Infrastructure.--The
    Authority shall allocate at least 50 percent of any funds made
    available under section 382M for transportation and basic
    public infrastructure projects authorized under paragraphs (1)
    and (3) of section 382C(a).

    ``SEC. 382G. DEVELOPMENT PLANNING PROCESS.

        ``(a) State Development Plan.--In accordance with policies
    established by the Authority, each State member shall submit a
    development plan for the area of the region represented by the
    State member.
        ``(b) Content of Plan.--A State development plan submitted
    under subsection (a) shall reflect the goals, objectives, and
    priorities identified in the regional development plan
    developed under section 382B(d)(2).
        ``(c) Consultation With Interested Local Parties.--In
    carrying out the development planning process (including the
    selection of programs and projects for assistance), a State
    may--
                ``(1) consult with--
                        ``(A) local development districts; and
                        ``(B) local units of government; and
                ``(2) take into consideration the goals,
            objectives, priorities, and recommendations of the
            entities described in paragraph (1).
        ``(d) Public Participation.--
                ``(1) In general.--The Authority and applicable
            State and local development districts shall encourage
            and assist, to the maximum extent practicable, public
            participation in the development, revision, and
            implementation of all plans and programs under this
            subtitle.
                ``(2) Regulations.--The Authority shall develop
            guidelines for providing public participation described
            in paragraph (1), including public hearings.

    ``SEC. 382H. PROGRAM DEVELOPMENT CRITERIA.

        ``(a) In General.--In considering programs and projects to
    be provided assistance under this subtitle, and in establishing
    a priority ranking of the requests for assistance provided by
    the Authority, the Authority shall follow procedures that
    ensure, to the maximum extent practicable, consideration of--
                ``(1) the relationship of the project or class of
            projects to overall regional development;
                ``(2) the per capita income and poverty and
            unemployment rates in an area;
                ``(3) the financial resources available to the
            applicants for assistance seeking to carry out the
            project, with emphasis on ensuring that projects are
            adequately financed to maximize the probability of
            successful economic development;
                ``(4) the importance of the project or class of
            projects in relation to other projects or classes of
            projects that may be in competition for the same funds;
                ``(5) the prospects that the project for which
            assistance is sought will improve, on a continuing
            rather than a temporary basis, the opportunities for
            employment, the average level of income, or the
            economic development of the area served by the project;
            and
                ``(6) the extent to which the project design
            provides for detailed outcome measurements by which
            grant expenditures and the results of the expenditures
            may be evaluated.
        ``(b) No Relocation Assistance.--No financial assistance
    authorized by this subtitle shall be used to assist a person or
    entity in relocating from 1 area to another, except that
    financial assistance may be used as otherwise authorized by
    this title to attract businesses from outside the region to the
    region.
        ``(c) Reduction of Funds.--Funds may be provided for a
    program or project in a State under this subtitle only if the
    Authority determines that the level of Federal or State
    financial assistance provided under a law other than this
    subtitle, for the same type of program or project in the same
    area of the State within the region, will not be reduced as a
    result of funds made available by this subtitle.

    ``SEC. 382I. APPROVAL OF DEVELOPMENT PLANS AND PROJECTS.

        ``(a) In General.--A State or regional development plan or
    any multistate subregional plan that is proposed for
    development under this subtitle shall be reviewed by the
    Authority.
        ``(b) Evaluation by State Member.--An application for a
    grant or any other assistance for a project under this subtitle
    shall be made through and evaluated for approval by the State
    member of the Authority representing the applicant.
        ``(c) Certification.--An application for a grant or other
    assistance for a project shall be approved only on
    certification by the State member that the application for the
    project--
                ``(1) describes ways in which the project complies
            with any applicable State development plan;
                ``(2) meets applicable criteria under section 382H;
                ``(3) provides adequate assurance that the proposed
            project will be properly administered, operated, and
            maintained; and
                ``(4) otherwise meets the requirements of this
            subtitle.
        ``(d) Votes for Decisions.--On certification by a State
    member of the Authority of an application for a grant or other
    assistance for a specific project under this section, an
    affirmative vote of the Authority under section 382B(c) shall
    be required for approval of the application.

    ``SEC. 382J. CONSENT OF STATES.

        ``Nothing in this subtitle requires any State to engage in
    or accept any program under this subtitle without the consent
    of the State.

    ``SEC. 382K. RECORDS.

        ``(a) Records of the Authority.--
                ``(1) In general.--The Authority shall maintain
            accurate and complete records of all transactions and
            activities of the Authority.
                ``(2) Availability.--All records of the Authority
            shall be available for audit and examination by the
            Comptroller General of the United States and the
            Inspector General of the Department of Agriculture
            (including authorized representatives of the
            Comptroller General and the Inspector General of the
            Department of Agriculture).
        ``(b) Records of Recipients of Federal Assistance.--
                ``(1) In general.--A recipient of Federal funds
            under this subtitle shall, as required by the
            Authority, maintain accurate and complete records of
            transactions and activities financed with Federal funds
            and report on the transactions and activities to the
            Authority.
                ``(2) Availability.--All records required under
            paragraph (1) shall be available for audit by the
            Comptroller General of the United States, the Inspector
            General of the Department of Agriculture, and the
            Authority (including authorized representatives of the
            Comptroller General, the Inspector General of the
            Department of Agriculture, and the Authority).
        ``(c) Annual Audit.--The Inspector General of the
    Department of Agriculture shall audit the activities,
    transactions, and records of the Authority on an annual basis.

    ``SEC. 382L. ANNUAL REPORT.

        ``Not later than 180 days after the end of each fiscal
    year, the Authority shall submit to the President and to
    Congress a report describing the activities carried out under
    this subtitle.

    ``SEC. 382M. AUTHORIZATION OF APPROPRIATIONS.

        ``(a) In General.--There is authorized to be appropriated
    to the Authority to carry out this subtitle $30,000,000 for
    each of fiscal years 2001 through 2002, to remain available
    until expended.
        ``(b) Administrative Expenses.--Not more than 5 percent of
    the amount appropriated under subsection (a) for a fiscal year
    shall be used for administrative expenses of the Authority.

    ``SEC. 382N. TERMINATION OF AUTHORITY.

        ``This subtitle and the authority provided under this
    subtitle expire on October 1, 2002.''.

    SEC. 504. AREA COVERED BY LOWER MISSISSIPPI DELTA DEVELOPMENT
                        COMMISSION.

        (a) In General.--Section 4(2)(D) of the Delta Development
    Act (42 U.S.C. 3121 note; 102 Stat. 2246) is amended by
    inserting ``Natchitoches,'' after ``Winn,''.
        (b) Conforming Amendment.--The matter under the heading
    ``salaries and expenses'' under the heading ``Farmers Home
    Administration'' in title II of Public Law 100-460 (102 Stat.
    2246) is amended in the fourth proviso by striking ``carry
    out'' and all that follows through ``bills are hereby'' and
    inserting ``carry out S. 2836, the Delta Development Act, as
    introduced in the Senate on September 27, 1988, and that bill
    is''.

                  TITLE VI--DAKOTA WATER RESOURCES ACT OF 2000

    SECTION 601. SHORT TITLE.

        This title may be cited as the ``Dakota Water Resources Act
    of 2000''.

    SEC. 602. PURPOSES AND AUTHORIZATION.

        Section 1 of Public Law 89-108 (79 Stat. 433; 100 Stat.
    418) is amended--
                (1) in subsection (a)--
                        (A) in paragraph (2), by striking ``of''
                    and inserting ``within'';
                        (B) in paragraph (5), by striking ``more
                    timely'' and inserting ``appropriate''; and
                        (C) in paragraph (7), by striking
                    ``federally-assisted water resource development
                    project providing irrigation for 130,940 acres
                    of land'' and inserting ``multipurpose
                    federally assisted water resource project
                    providing irrigation, municipal, rural, and
                    industrial water systems, fish, wildlife, and
                    other natural resource conservation and
                    development, recreation, flood control, ground
                    water recharge, and augmented stream flows'';
                (2) in subsection (b)--
                        (A) by inserting ``, jointly with the State
                    of North Dakota,'' after ``construct'';
                        (B) by striking ``the irrigation of 130,940
                    acres'' and inserting ``irrigation'';
                        (C) by striking ``fish and wildlife
                    conservation'' and inserting ``fish, wildlife,
                    and other natural resource conservation'';
                        (D) by inserting ``augmented stream flows,
                    ground water recharge,'' after ``flood
                    control,''; and
                        (E) by inserting ``(as modified by the
                    Dakota Water Resources Act of 2000)'' before
                    the period at the end;
                (3) in subsection (e), by striking ``terminated''
            and all that follows and inserting ``terminated.''; and
                (4) by striking subsections (f) and (g) and
            inserting the following:
        ``(f) Costs.--
                ``(1) Estimate.--The Secretary shall estimate--
                        ``(A) the actual construction costs of the
                    facilities (including mitigation facilities) in
                    existence as of the date of enactment of the
                    Dakota Water Resources Act of 2000; and
                        ``(B) the annual operation, maintenance,
                    and replacement costs associated with the used
                    and unused capacity of the features in
                    existence as of that date.
                ``(2) Repayment contract.--An appropriate repayment
            contract shall be negotiated that provides for the
            making of a payment for each payment period in an
            amount that is commensurate with the percentage of the
            total capacity of the project that is in actual use
            during the payment period.
                ``(3) Operation and maintenance costs.--Except as
            otherwise provided in this Act or Reclamation Law--
                        ``(A) The Secretary shall be responsible
                    for the costs of operation and maintenance of
                    the proportionate share of unit facilities in
                    existence on the date of enactment of the
                    Dakota Water Resources Act of 2000 attributable
                    to the capacity of the facilities (including
                    mitigation facilities) that remain unused;
                        ``(B) The State of North Dakota shall be
                    responsible for costs of operation and
                    maintenance of the proportionate share of
                    existing unit facilities that are used and
                    shall be responsible for the full costs of
                    operation and maintenance of any facility
                    constructed after the date of enactment of the
                    Dakota Water Resources Act of 2000; and
                        ``(C) The State of North Dakota shall be
                    responsible for the costs of providing energy
                    to authorized unit facilities.
        ``(g) Agreement Between the Secretary and the State.--The
    Secretary shall enter into 1 or more agreements with the State
    of North Dakota to carry out this Act, including operation and
    maintenance of the completed unit facilities and the design and
    construction of authorized new unit facilities by the State.
        ``(h) Boundary Waters Treaty of 1909.--
                ``(1) Delivery of water into the hudson bay
            basin.--Prior to construction of any water systems
            authorized under this Act to deliver Missouri River
            water into the Hudson Bay basin, the Secretary, in
            consultation with the Secretary of State and the
            Administrator of the Environmental Protection Agency,
            must determine that adequate treatment can be provided
            to meet the requirements of the Treaty between the
            United States and Great Britain relating to Boundary
            Waters Between the United States and Canada, signed at
            Washington, January 11, 1909 (26 Stat. 2448; TS 548)
            (commonly known as the Boundary Waters Treaty of 1909).
                ``(2) Costs.--All costs of construction, operation,
            maintenance, and replacement of water treatment and
            related facilities authorized by this Act and
            attributable to meeting the requirements of the treaty
            referred to in paragraph (1) shall be
            nonreimbursable.''.

    SEC. 603. FISH AND WILDLIFE.

        Section 2 of Public Law 89-108 (79 Stat. 433; 100 Stat.
    419) is amended--
                (1) by striking subsections (b), (c), and (d) and
            inserting the following:
        ``(b) Fish and Wildlife Costs.--All fish and wildlife
    enhancement costs incurred in connection with waterfowl
    refuges, waterfowl production areas, and wildlife conservation
    areas proposed for Federal or State administration shall be
    nonreimbursable.
        ``(c) Recreation Areas.--
                ``(1) Costs.--If non-Federal public bodies continue
            to agree to administer land and water areas approved
            for recreation and agree to bear not less than 50
            percent of the separable costs of the unit allocated to
            recreation and attributable to those areas and all the
            costs of operation, maintenance, and replacement
            incurred in connection therewith, the remainder of the
            separable capital costs so allocated and attributed
            shall be nonreimbursable.
                ``(2) Approval.--The recreation areas shall be
            approved by the Secretary in consultation and
            coordination with the State of North Dakota.
        ``(d) Non-Federal Share.--The non-Federal share of the
    separable capital costs of the unit allocated to recreation
    shall be borne by non-Federal interests, using the following
    methods, as the Secretary may determine to be appropriate:
                ``(1) Services in kind.
                ``(2) Payment, or provision of lands, interests
            therein, or facilities for the unit.
                ``(3) Repayment, with interest, within 50 years of
            first use of unit recreation facilities.'';
                (2) in subsection (e)--
                        (A) by redesignating paragraphs (1) and (2)
                    as paragraphs (2) and (3), respectively;
                        (B) by inserting ``(1)'' after ``(e)'';
                        (C) in paragraph (2) (as redesignated by
                    subparagraph (A))--
                                (i) in the first sentence--
                                        (I) by striking ``within
                                    ten years after initial unit
                                    operation to administer for
                                    recreation and fish and
                                    wildlife enhancement'' and
                                    inserting ``to administer for
                                    recreation''; and
                                        (II) by striking ``which
                                    are not included within Federal
                                    waterfowl refuges and waterfowl
                                    production areas''; and
                                (ii) in the second sentence, by
                            striking ``or fish and wildlife
                            enhancement''; and
                        (D) in the first sentence of paragraph (3)
                    (as redesignated by subparagraph (A))--
                                (i) by striking ``, within ten
                            years after initial operation of the
                            unit,''; and
                                (ii) by striking ``paragraph (1) of
                            this subsection'' and inserting
                            ``paragraph (2)'';
                (3) in subsection (f), by striking ``and fish and
            wildlife enhancement''; and
                (4) in subsection (j)--
                        (A) in paragraph (1), by striking ``prior
                    to the completion of construction of Lonetree
                    Dam and Reservoir''; and
                        (B) by adding at the end the following:
                ``(4) Taayer reservoir.--Taayer Reservoir is
            deauthorized as a project feature. The Secretary,
            acting through the Commissioner of Reclamation, shall
            acquire (including acquisition through donation or
            exchange) up to 5,000 acres in the Kraft and Pickell
            Slough areas and to manage the area as a component of
            the National Wildlife Refuge System giving
            consideration to the unique wildlife values of the
            area. In acquiring the lands which comprise the Kraft
            and Pickell Slough complex, the Secretary shall acquire
            wetlands in the immediate vicinity which may be
            hydrologically related and nearby uplands as may be
            necessary to provide for proper management of the
            complex. The Secretary shall provide for appropriate
            visitor access and control at the refuge.
                ``(5) Deauthorization of lonetree dam and
            reservoir.--The Lonetree Dam and Reservoir is
            deauthorized, and the Secretary shall designate the
            lands acquired for the former reservoir site as a
            wildlife conservation area. The Secretary shall enter
            into an agreement with the State of North Dakota
            providing for the operation and maintenance of the
            wildlife conservation area as an enhancement feature,
            the costs of which shall be paid by the Secretary.''.

    SEC. 604. INTEREST CALCULATION.

        Section 4 of Public Law 89-108 (100 Stat. 435) is amended
    by adding at the end the following: ``Interest during
    construction shall be calculated only until such date as the
    Secretary declares any particular feature to be substantially
    complete, regardless of whether the feature is placed into
    service.''.

    SEC. 605. IRRIGATION FACILITIES.

        Section 5 of Public Law 89-108 (100 Stat. 419) is amended--
                (1) by striking ``Sec. 5. (a)(1)'' and all that
            follows through subsection (c) and inserting the
            following:

    ``SEC. 5. IRRIGATION FACILITIES.

        ``(a) In General.--
                ``(1) Authorized development.--In addition to the
            5,000-acre Oakes Test Area in existence on the date of
            enactment of the Dakota Water Resources Act of 2000,
            the Secretary may develop irrigation in--
                        ``(A) the Turtle Lake service area (13,700
                    acres);
                        ``(B) the McClusky Canal service area
                    (10,000 acres); and
                        ``(C) if the investment costs are fully
                    reimbursed without aid to irrigation from the
                    Pick- Sloan Missouri Basin Program, the New
                    Rockford Canal service area (1,200 acres).
                ``(2) Development not authorized.--None of the
            irrigation authorized by this section may be developed
            in the Hudson Bay/Devils Lake Basin.
                ``(3) No excess development.--The Secretary shall
            not develop irrigation in the service areas described
            in paragraph (1) in excess of the acreage specified in
            that paragraph, except that the Secretary shall develop
            up to 28,000 acres of irrigation in other areas of
            North Dakota (such as the Elk/Charbonneau, Mon-Dak,
            Nesson Valley, Horsehead Flats, and Oliver-Mercer
            areas) that are not located in the Hudson Bay/Devils
            Lake drainage basin or James River drainage basin.
                ``(4) Pumping power.--Irrigation development
            authorized by this section shall be considered
            authorized units of the Pick-Sloan Missouri Basin
            Program and eligible to receive project pumping power.
                ``(5) Principal supply works.--The Secretary shall
            maintain the Snake Creek Pumping Plant, New Rockford
            Canal, and McClusky Canal features of the principal
            supply works. Subject to the provisions of section (8)
            of this Act, the Secretary shall select a preferred
            alternative to implement the Dakota Water Resources Act
            of 2000. In making this section, one of the
            alternatives the Secretary shall consider is whether to
            connect the principal supply works in existence on the
            date of enactment.'';
                (2) by redesignating subsections (d), (e), and (f)
            as subsections (b), (c), and (d), respectively;
                (3) in the first sentence of subsection (b) (as
            redesignated by paragraph (2)), by striking ``(a)(1)''
            and inserting ``(a)'';
                (4) in the first sentence of subsection (c) (as
            redesignated by paragraph (2)), by striking ``Lucky
            Mound (7,700 acres), Upper Six Mile Creek (7,500
            acres)'' and inserting ``Lucky Mound (7,700 acres) and
            Upper Six Mile Creek (7,500 acres), or such other lands
            at Fort Berthold of equal acreage as may be selected by
            the tribe and approved by the Secretary,''; and
                (5) by adding at the end the following:
        ``(e) Irrigation Report to Congress.--
                ``(1) In general.--The Secretary shall investigate
            and prepare a detailed report on the undesignated
            28,000 acres in subsection (a)(3) as to costs and
            benefits for any irrigation units to be developed under
            Reclamation law.
                ``(2) Finding.--The report shall include a finding
            on the economic, financial and engineering feasibility
            of the proposed irrigation unit, but shall be limited
            to the undesignated 28,000 acres.
                ``(3) Authorization.--If the Secretary finds that
            the proposed construction is feasible, such irrigation
            units are authorized without further Act of Congress.
                ``(4) Documentation.--No expenditure for the
            construction of facilities authorized under this
            section shall be made until after the Secretary, in
            cooperation with the State of North Dakota, has
            prepared the appropriate documentation in accordance
            with section 1 and pursuant to the National
            Environmental Policy Act of 1969 (42 U.S.C. 4321 et
            seq.) analyzing the direct and indirect impacts of
            implementing the report.''.

    SEC. 606. POWER.

        Section 6 of Public Law 89-108 (79 Stat. 435; 100 Stat.
    421) is amended--
                (1) in subsection (b)--
                        (A) by striking ``Notwithstanding the
                    provisions of'' and inserting ``Pursuant to the
                    provisions of''; and
                        (B) by striking ``revenues,'' and all that
                    follows and inserting ``revenues.''; and
                (2) by striking subsection (c) and inserting the
            following:
        ``(c) No Increase in Rates or Affect on Repayment
    Methodology.--In accordance with the last sentence of section
    302(a)(3) of the Department of Energy Organization Act (42
    U.S.C. 7152(a)(3)), section 1(e) shall not result in any
    reallocation of project costs and shall not result in increased
    rates to Pick-Sloan Missouri Basin Program customers. Nothing
    in the Dakota Water Resources Act of 2000 alters or affects in
    any way the repayment methodology in effect as of the date of
    enactment of that Act for other features of the Pick-Sloan
    Missouri Basin Program.''.

    SEC. 607. MUNICIPAL, RURAL, AND INDUSTRIAL WATER SERVICE.

        Section 7 of Public Law 89-108 (100 Stat. 422) is amended--
                (1) in subsection (a)(3)--
                        (A) in the second sentence--
                                (i) by striking ``The non-Federal
                            share'' and inserting ``Unless
                            otherwise provided in this Act, the
                            non-Federal share'';
                                (ii) by striking ``each water
                            system'' and inserting ``water
                            systems'';
                                (iii) by inserting after the second
                            sentence the following: ``The State may
                            use the Federal and non-Federal funds
                            to provide grants or loans for
                            municipal, rural, and industrial water
                            systems. The State shall use the
                            proceeds of repaid loans for municipal,
                            rural, and industrial water systems.
                            Proceeds from loan repayments and any
                            interest thereon shall be treated as
                            Federal funds.''; and
                                (iv) by striking the last sentence
                            and inserting the following: ``The
                            Southwest Pipeline Project, the
                            Northwest Area Water Supply Project,
                            the Red River Valley Water Supply
                            Project, and other municipal,
                            industrial, and rural water systems in
                            the State of North Dakota shall be
                            eligible for funding under the terms of
                            this section. Funding provided under
                            this section for the Red River Valley
                            Water Supply Project shall be in
                            addition to funding for that project
                            under section 10(a)(1)(B). The amount
                            of non-Federal contributions made after
                            May 12, 1986, that exceeds the 25
                            percent requirement shall be credited
                            to the State for future use in
                            municipal, rural, and industrial
                            projects under this section.''; and
                (2) by striking subsections (b), (c), and (d) and
            inserting the following:
        ``(b) Water Conservation Program.--The State of North
    Dakota may use funds provided under subsections (a) and
    (b)(1)(A) of section 10 to develop and implement a water
    conservation program. The Secretary and the State shall jointly
    establish water conservation goals to meet the purposes of the
    State program and to improve the availability of water supplies
    to meet the purposes of this Act. If the State achieves the
    established water conservation goals, the non-Federal cost
    share for future projects under subsection (a)(3) shall be
    reduced to 24.5 percent.
        ``(c) Nonreimbursability of Costs.--With respect to the
    Southwest Pipeline Project, the Northwest Area Water Supply
    Project, the Red River Valley Water Supply Project, and other
    municipal, industrial, and rural water systems in North Dakota,
    the costs of the features constructed on the Missouri River by
    the Secretary of the Army before the date of enactment of the
    Dakota Water Resources Act of 2000 shall be nonreimbursable.
        ``(d) Indian Municipal Rural and Industrial Water Supply.--
    The Secretary shall construct, operate, and maintain such
    municipal, rural, and industrial water systems as the Secretary
    determines to be necessary to meet the economic, public health,
    and environmental needs of the Fort Berthold, Standing Rock,
    Turtle Mountain (including the Trenton Indian Service Area),
    and Fort Totten Indian Reservations and adjacent areas.''.

    SEC. 608. SPECIFIC FEATURES.

        (a) Sykeston Canal.--Sykeston Canal is hereby deauthorized.
        (b) In General.--Public Law 89-108 (100 Stat. 423) is
    amended by striking section 8 and inserting the following:

    ``SEC. 8. SPECIFIC FEATURES.

        ``(a) Red River Valley Water Supply Project.--
                ``(1) In general.--Subject to the requirements of
            this section, the Secretary shall construct a feature
            or features to provide water to the Sheyenne River
            water supply and release facility or such other feature
            or features as are selected under subsection (d).
                ``(2) Design and construction.--The feature or
            features shall be designed and constructed to meet only
            the following water supply requirements as identified
            in the report prepared pursuant to subsection (b) of
            this section: Municipal, rural, and industrial water
            supply needs; ground water recharge; and streamflow
            augmentation.
                ``(3) Commencement of construction.--(A) If the
            Secretary selects a project feature under this section
            that would provide water from the Missouri River or its
            tributaries to the Sheyenne River water supply and
            release facility or from the Missouri River or its
            tributaries to such other conveyance facility as the
            Secretary selects under this section, no later than 90
            days after the completion of the final environmental
            impact statement, the Secretary shall transmit to
            Congress a comprehensive report which provides--
                        ``(i) a detailed description of the
                    proposed project feature;
                        ``(ii) a summary of major issues addressed
                    in the environmental impact statement;
                        ``(iii) likely effects, if any, on other
                    States bordering the Missouri River and on the
                    State of Minnesota; and
                        ``(iv) a description of how the project
                    feature complies with the requirements of
                    section 1(h)(1) of this Act (relating to the
                    Boundary Waters Treaty of 1909).
                ``(B) No project feature or features that would
            provide water from the Missouri River or its
            tributaries to the Sheyenne River water supply and
            release facility or from the Missouri River or its
            tributaries to such other conveyance facility as the
            Secretary selects under this section shall be
            constructed unless such feature is specifically
            authorized by an Act of Congress approved subsequent to
            the Secretary's transmittal of the report required in
            subparagraph (A). If, after complying with subsections
            (b) through (d) of this section, the Secretary selects
            a feature or features using only in-basin sources of
            water to meet the water needs of the Red River Valley
            identified in subsection (b), such features are
            authorized without further Act of Congress. The Act of
            Congress referred to in this subparagraph must be an
            authorization bill, and shall not be a bill making
            appropriations.
                ``(C) The Secretary may not commence construction
            on the feature until a master repayment contract or
            water service agreement consistent with this Act
            between the Secretary and the appropriate non-Federal
            entity has been executed.
        ``(b) Report on Red River Valley Water Needs and Options.--
                ``(1) In general.--The Secretary of the Interior
            shall conduct a comprehensive study of the water
            quality and quantity needs of the Red River Valley in
            North Dakota and possible options for meeting those
            needs.
                ``(2) Needs.--The needs addressed in the report
            shall include such needs as--
                        ``(A) municipal, rural, and industrial
                    water supplies;
                        ``(B) water quality;
                        ``(C) aquatic environment;
                        ``(D) recreation; and
                        ``(E) water conservation measures.
                ``(3) Process.--In conducting the study, the
            Secretary through an open and public process shall
            solicit input from gubernatorial designees from states
            that may be affected by possible options to meet such
            needs as well as designees from other federal agencies
            with relevant expertise. For any option that includes
            an out-of-basin solution, the Secretary shall consider
            the effect of the option on other states that may be
            affected by such option, as well as other appropriate
            considerations. Upon completion, a draft of the study
            shall be provided by the Secretary to such states and
            federal agencies. Such states and agencies shall be
            given not less than 120 days to review and comment on
            the study method, findings and conclusions leading to
            any alternative that may have an impact on such states
            or on resources subject to such federal agencies'
            jurisdiction. The Secretary shall receive and take into
            consideration any such comments and produce a final
            report and transmit the final report to Congress.
                ``(4) Limitation.--No design or construction of any
            feature or features that facilitate an out-of-basin
            transfer from the Missouri River drainage basin shall
            be authorized under the provisions of this subsection.
        ``(c) Environmental Impact Statement.--
                ``(1) In general.--Nothing in this section shall be
            construed to supersede any requirements under the
            National Environmental Policy Act or the Administrative
            Procedures Act.
                ``(2) Draft.--
                        ``(A) Deadline.--Pursuant to an agreement
                    between the Secretary and State of North Dakota
                    as authorized under section 1(g), not later
                    than 1 year after the date of enactment of the
                    Dakota Water Resources Act of 2000, the
                    Secretary and the State of North Dakota shall
                    jointly prepare and complete a draft
                    environmental impact statement concerning all
                    feasible options to meet the comprehensive
                    water quality and quantity needs of the Red
                    River Valley and the options for meeting those
                    needs, including the delivery of Missouri River
                    water to the Red River Valley.
                        ``(B) Report on status.--If the Secretary
                    and State of North Dakota cannot prepare and
                    complete the draft environmental impact
                    statement within 1 year after the date of
                    enactment of the Dakota Water Resources Act of
                    2000, the Secretary, in consultation and
                    coordination with the State of North Dakota,
                    shall report to Congress on the status of this
                    activity, including an estimate of the date of
                    completion.
                ``(3) Final.--
                        ``(A) Deadline.--Not later than 1 year
                    after filing the draft environmental impact
                    statement, a final environmental impact
                    statement shall be prepared and published.
                        ``(B) Report on status.--If the Secretary
                    and State of North Dakota cannot prepare and
                    complete a final environmental impact statement
                    within 1 year of the completion of the draft
                    environmental impact statement, the Secretary,
                    in consultation and coordination with the State
                    of North Dakota, shall report to Congress on
                    the status of this activity, including an
                    estimate of the date of completion.
        ``(d) Process for Selection.--
                ``(1) In general.--After reviewing the final report
            required by subsection (b)(1) and complying with
            subsection (c), the Secretary, in consultation and
            coordination with the State of North Dakota in
            coordination with affected local communities, shall
            select 1 or more project features described in
            subsection (a) that will meet the comprehensive water
            quality and quantity needs of the Red River Valley. The
            Secretary's selection of an alternative shall be
            subject to judicial review.
                ``(2) Agreements.--If the Secretary selects an
            option under paragraph (1) that uses only in-basin
            sources of water, not later than 180 days after the
            record of decision has been executed, the Secretary
            shall enter into a cooperative agreement with the State
            of North Dakota to construct the feature or features
            selected. If the Secretary selects an option under
            paragraph (1) that would require a further act of
            Congress under the provisions of subsection (a), not
            later than 180 days after the date of enactment of
            legislation required under subsection (a) the Secretary
            shall enter into a cooperative agreement with the State
            of North Dakota to construct the feature or features
            authorized by that legislation.
        ``(e) Sheyenne River Water Supply and Release or Alternate
    Features.--The Secretary shall construct, operate, and maintain
    a Sheyenne River water supply and release feature (including a
    water treatment plant) capable of delivering 100 cubic feet per
    second of water or any other amount determined in the reports
    under this section, for the cities of Fargo and Grand Forks and
    surrounding communities, or such other feature or features as
    may be selected under subsection (d).
        ``(f) Devils Lake.--No funds authorized under this Act may
    be used to carry out the portion of the feasibility study of
    the Devils Lake basin, North Dakota, authorized under the
    Energy and Water Development Appropriations Act of 1993 (Public
    Law 102-377), that addresses the needs of the area for
    stabilized lake levels through inlet controls, or to otherwise
    study any facility or carry out any activity that would permit
    the transfer of water from the Missouri River drainage basin
    into Devils Lake, North Dakota.''.

    SEC. 609. OAKES TEST AREA TITLE TRANSFER.

        Public Law 89-108 (100 Stat. 423) is amended by striking
    section 9 and inserting the following:

    ``SEC. 9. OAKES TEST AREA TITLE TRANSFER.

        ``(a) In General.--Not later than 2 years after execution
    of a record of decision under section 8(d) on whether to use
    the New Rockford Canal as a means of delivering water to the
    Red River Basin as described in section 8, the Secretary shall
    enter into an agreement with the State of North Dakota, or its
    designee, to convey title and all or any rights, interests, and
    obligations of the United States in and to the Oakes Test Area
    as constructed and operated under Public Law 99-294 (100 Stat.
    418) under such terms and conditions as the Secretary believes
    would fully protect the public interest.
        ``(b) Terms and Conditions.--The agreement shall define the
    terms and conditions of the transfer of the facilities, lands,
    mineral estate, easements, rights-of-way and water rights
    including the avoidance of costs that the Federal Government
    would otherwise incur in the case of a failure to agree under
    subsection (d).
        ``(c) Compliance.--The action of the Secretary under this
    section shall comply with all applicable requirements of
    Federal, State, and local law.
        ``(d) Failure To Agree.--If an agreement is not reached
    within the time limit specified in subsection (a), the
    Secretary shall dispose of the Oakes Test Area facilities under
    the Federal Property and Administrative Services Act of 1949
    (40 U.S.C. 471 et seq.).''.

    SEC. 610. AUTHORIZATION OF APPROPRIATIONS.

        Section 10 of Public Law 89-108 (100 Stat. 424; 106 Stat.
    4669, 4739) is amended--
                (1) in subsection (a)--
                        (A) by striking ``(a)(1) There are
                    authorized'' and inserting the following:
        ``(a) Water Distribution Features.--
                ``(1) In general.--
                        ``(A) Main stem supply works.--There is
                    authorized'';
                        (B) in paragraph (1)--
                                (i) in the first sentence, by
                            striking ``$270,395,000 for carrying
                            out the provisions of section 5(a)
                            through 5(c) and section 8(a)(1) of
                            this Act'' and inserting ``$164,000,000
                            to carry out section 5(a)'';
                                (ii) by inserting after
                            subparagraph (A) (as designated by
                            clause (i)) the following:
                        ``(B) Red river valley water supply
                    project.--There is authorized to be
                    appropriated to carry out section 8(a)(1)
                    $200,000,000.''; and
                                (iii) by striking ``Such sums'' and
                            inserting the following:
                        ``(C) Availability.--Such sums''; and
                        (C) in paragraph (2)--
                                (i) by striking ``(2) There is''
                            and inserting the following:
                ``(2) Indian irrigation.--
                        ``(A) In general.--There is'';
                                (ii) by striking ``for carrying out
                            section 5(e) of this Act'' and
                            inserting ``to carry out section
                            5(c)''; and
                                (iii) by striking ``Such sums'' and
                            inserting the following:
                        ``(B) Availability.--Such sums'';
                (2) in subsection (b)--
                        (A) by striking ``(b)(1) There is'' and
                    inserting the following:
        ``(b) Municipal, Rural, and Industrial Water Supply.--
                ``(1) Statewide.--
                        ``(A) Initial amount.--There is'';
                        (B) in paragraph (1)--
                                (i) by inserting before ``Such
                            sums'' the following:
                        ``(B) Additional amount.--In addition to
                    the amount under subparagraph (A), there is
                    authorized to be appropriated to carry out
                    section 7(a) $200,000,000.''; and
                                (ii) by striking ``Such sums'' and
                            inserting the following:
                        ``(C) Availability.--Such sums''; and
                        (C) in paragraph (2)--
                                (i) by striking ``(2) There are
                            authorized to be appropriated
                            $61,000,000'' and all that follows
                            through ``Act.'' and inserting the
                            following:
                ``(2) Indian municipal, rural, and industrial and
            other delivery features.--
                        ``(A) Initial amount.--There is authorized
                    to be appropriated--
                                ``(i) to carry out section 8(a)(1),
                            $40,500,000; and
                                ``(ii) to carry out section 7(d),
                            $20,500,000.'';
                                (ii) by inserting before ``Such
                            sums'' the following:
                        ``(B) Additional amount.--
                                ``(i) In general.--In addition to
                            the amount under subparagraph (A),
                            there is authorized to be appropriated
                            to carry out section 7(d) $200,000,000.
                                ``(ii) Allocation.--The amount
                            under clause (i) shall be allocated as
                            follows:
                                        ``(I) $30,000,000 to the
                                    Fort Totten Indian Reservation.
                                        ``(II) $70,000,000 to the
                                    Fort Berthold Indian
                                    Reservation.
                                        ``(IV) $80,000,000 to the
                                    Standing Rock Indian
                                    Reservation.
                                        ``(V) $20,000,000 to the
                                    Turtle Mountain Indian
                                    Reservation.''; and
                                (ii) by striking ``Such sums'' and
                            inserting the following:
                        ``(C) Availability.--Such sums'';
                (3) in subsection (c)--
                        (A) by striking ``(c) There is'' and
                    inserting the following:
        ``(c) Resources Trust and Other Provisions.--
                ``(1) Initial amount.--There is''; and
                        (B) by striking the second and third
                    sentences and inserting the following:
                ``(2) Additional amount.--In addition to amount
            under paragraph (1), there are authorized to be
            appropriated--
                        ``(A) $6,500,000 to carry out recreational
                    projects; and
                        ``(B) an additional $25,000,000 to carry
                    out section 11;
            to remain available until expended.
                ``(3) Recreational projects.--Of the funds
            authorized under paragraph (2) for recreational
            projects, up to $1,500,000 may be used to fund a
            wetland interpretive center in the State of North
            Dakota.
                ``(4) Operation and maintenance.--
                        ``(A) In general.-- There are authorized to
                    be appropriated such sums as are necessary for
                    operation and maintenance of the unit
                    (including the mitigation and enhancement
                    features).
                        ``(B) Authorization limits.--Expenditures
                    for operation and maintenance of features
                    substantially completed and features
                    constructed before the date of enactment of the
                    Dakota Water Resources Act of 2000, including
                    funds expended for such purposes since the date
                    of enactment of Public Law 99-294, shall not be
                    counted against the authorization limits in
                    this section.
                ``(5) Mitigation and enhancement land.--On or about
            the date on which the features authorized by section
            8(a) are operational, a separate account in the Natural
            Resources Trust authorized by section 11 shall be
            established for operation and maintenance of the
            mitigation and enhancement land associated with the
            unit.''; and
                (4) by striking subsection (e) and inserting the
            following:
        ``(e) Indexing.--The $200,000,000 amount under subsection
    (b)(1)(B), the $200,000,000 amount under subsection (a)(1)(B),
    and the funds authorized under subsection (b)(2) shall be
    indexed as necessary to allow for ordinary fluctuations of
    construction costs incurred after the date of enactment of the
    Dakota Water Resources Act of 2000 as indicated by engineering
    cost indices applicable for the type of construction involved.
    All other authorized cost ceilings shall remain unchanged.''.

    SEC. 611. NATURAL RESOURCES TRUST.

        Section 11 of Public Law 89-108 (100 Stat. 424) is
    amended--
                (1) by striking subsection (a) and inserting the
            following:
        ``(a) Contribution.--
                ``(1) Initial authorization.--
                        ``(A) In general.--From the sums
                    appropriated under section 10 for the Garrison
                    Diversion Unit, the Secretary shall make an
                    annual Federal contribution to a Natural
                    Resources Trust established by non-Federal
                    interests in accordance with subsection (b) and
                    operated in accordance with subsection (c).
                        ``(B) Amount.--The total amount of Federal
                    contributions under subparagraph (A) shall not
                    exceed $12,000,000.
                ``(2) Additional authorization.--
                        ``(A) In general.--In addition to the
                    amount authorized in paragraph (1), the
                    Secretary shall make annual Federal
                    contributions to the Natural Resources Trust
                    until the amount authorized by section
                    10(c)(2)(B) is reached, in the manner stated in
                    subparagraph (B).
                        ``(B) Annual amount.--The amount of the
                    contribution under subparagraph (A) for each
                    fiscal year shall be the amount that is equal
                    to 5 percent of the total amount that is
                    appropriated for the fiscal year under
                    subsections (a)(1)(B) and (b)(1)(B) of section
                    10.''.
                (2) in subsection (b), by striking ``Wetlands
            Trust'' and inserting ``Natural Resources Trust''; and
                (3) in subsection (c)--
                        (A) by striking ``Wetland Trust'' and
                    inserting ``Natural Resources Trust'';
                        (B) by striking ``are met'' and inserting
                    ``is met'';
                        (C) in paragraph (1), by inserting ``,
                    grassland conservation and riparian areas''
                    after ``habitat''; and
                        (D) in paragraph (2), by adding at the end
                    the following:
                        ``(C) The power to fund incentives for
                    conservation practices by landowners.''

                                   TITLE VII

    SECTION 701. FINDINGS.

        Congress finds that--
                (1) there is a continuing need for reconciliation
            between Indians and non-Indians;
                (2) the need may be met partially through the
            promotion of the understanding of the history and
            culture of Sioux Indian tribes;
                (3) the establishment of a Sioux Nation Tribal
            Supreme Court will promote economic development on
            reservations of the Sioux Nation and provide investors
            that contribute to that development a greater degree of
            certainty and confidence by--
                        (A) reconciling conflicting tribal laws;
                    and
                        (B) strengthening tribal court systems;
                (4) the reservations of the Sioux Nation--
                        (A) contain the poorest counties in the
                    United States; and
                        (B) lack adequate tools to promote economic
                    development and the creation of jobs;
                (5) the establishment of a Native American Economic
            Development Council will assist in promoting economic
            growth and reducing poverty on reservations of the
            Sioux Nation by--
                        (A) coordinating economic development
                    efforts;
                        (B) centralizing expertise concerning
                    Federal assistance; and
                        (C) facilitating the raising of funds from
                    private donations to meet matching requirements
                    under certain Federal assistance programs;
                (6) there is a need to enhance and strengthen the
            capacity of Indian tribal governments and tribal
            justice systems to address conflicts which impair
            relationships within Indian communities and between
            Indian and non-Indian communities and individuals; and
                (7) the establishment of the National Native
            American Mediation Training Center, with the technical
            assistance of tribal and Federal agencies, including
            the Community Relations Service of the Department of
            Justice, would enhance and strengthen the mediation
            skills that are useful in reducing tensions and
            resolving conflicts in Indian communities and between
            Indian and non-Indian communities and individuals.

    SEC. 702. DEFINITIONS.

        In this title:
                (1) Indian tribe.--The term ``Indian tribe'' has
            the meaning given that term in section 4(e) of the
            Indian Self-Determination and Education Assistance Act
            (25 U.S.C. 450b(e)).
                (2) Secretary.--The term ``Secretary'' means the
            Secretary of the Interior.
                (3) Sioux nation.--The term ``Sioux Nation'' means
            the Indian tribes comprising the Sioux Nation.

    SEC. 703. RECONCILIATION CENTER.

        (a) Establishment.--The Secretary of Housing and Urban
    Development, in cooperation with the Secretary, shall
    establish, in accordance with this section, a reconciliation
    center, to be known as ``Reconciliation Place''.
        (b) Location.--Notwithstanding any other provision of law,
    the Secretary shall take into trust for the benefit of the
    Sioux Nation the parcel of land in Stanley County, South
    Dakota, that is described as ``The Reconciliation Place
    Addition'' that is owned on the date of enactment of this Act
    by the Wakpa Sica Historical Society, Inc., for the purpose of
    establishing and operating The Reconciliation Place.
        (c) Purposes.--The purposes of Reconciliation Place shall
    be as follows:
                (1) To enhance the knowledge and understanding of
            the history of Native Americans by--
                        (A) displaying and interpreting the
                    history, art, and culture of Indian tribes for
                    Indians and non-Indians; and
                        (B) providing an accessible repository
                    for--
                                (i) the history of Indian tribes;
                            and
                                (ii) the family history of members
                            of Indian tribes.
                (2) To provide for the interpretation of the
            encounters between Lewis and Clark and the Sioux
            Nation.
                (3) To house the Sioux Nation Tribal Supreme Court.
                (4) To house the Native American Economic
            Development Council.
                (5) To house the National Native American Mediation
            Training Center to train tribal personnel in conflict
            resolution and alternative dispute resolution.
        (d) Grant.--
                (1) In general.--The Secretary of Housing and Urban
            Development shall offer to award a grant to the Wakpa
            Sica Historical Society of Fort Pierre, South Dakota,
            for the construction of Reconciliation Place.
                (2) Grant agreement.--
                        (A) In general.--As a condition to
                    receiving the grant under this subsection, the
                    appropriate official of the Wakpa Sica
                    Historical Society shall enter into a grant
                    agreement with the Secretary of Housing and
                    Urban Development.
                        (B) Consultation.--Before entering into a
                    grant agreement under this paragraph, the
                    Secretary of Housing and Urban Development
                    shall consult with the Secretary concerning the
                    contents of the agreement.
                        (C) Duties of the wakpa sica historical
                    society.--The grant agreement under this
                    paragraph shall specify the duties of the Wakpa
                    Sica Historical Society under this section and
                    arrangements for the maintenance of
                    Reconciliation Place.
                (3) Authorization of appropriations.--There are
            authorized to be appropriated to the Department of
            Housing and Urban Development $18,258,441, to be used
            for the grant under this section.

    SEC. 704. SIOUX NATION SUPREME COURT AND NATIONAL NATIVE AMERICAN
                        MEDIATION TRAINING CENTER.

        (a) In General.--To ensure the development and operation of
    the Sioux Nation Tribal Supreme Court and the National Native
    American Mediation Training Center, the Attorney General of the
    United States shall use available funds to provide technical
    and financial assistance to the Sioux Nation.
        (b) Authorization of Appropriations.--To carry out this
    section, there are authorized to be appropriated to the
    Department of Justice such sums as are necessary.

              TITLE VIII--ERIE CANALWAY NATIONAL HERITAGE CORRIDOR

    SEC. 801. SHORT TITLE; DEFINITIONS.

        (a) Short Title.--This title may be cited as the ``Erie
    Canalway National Heritage Corridor Act''.
        (b) Definitions.--For the Purposes of this title, the
    following definitions shall apply:
                (1) Erie canalway.--The Term ``Erie Canalway''
            means the 524 miles of navigable canal that comprise
            the New York State Canal System, including the Erie,
            Cayuga and Seneca, Oswego, and Champlain Canals and the
            historic alignments of these canals, including the
            cities of Albany and Buffalo.
                (2) Canalway plan.--The term ``Canalway Plan''
            means the comprehensive preservation and management
            plan for the Corridor required under section 806.
                (3) Commission.--The term ``Commission'' means the
            Erie Canalway National Heritage Corridor Commission
            established under section 804.
                (4) Corridor.--The term ``Corridor'' means the Erie
            Canalway National Heritage Corridor established under
            section 803.
                (5) Governor.--The term ``Governor'' means the
            Governor of the State of New York.
                (6) Secretary.--The term ``Secretary'' means the
            Secretary of the Interior.

    SEC. 802. FINDINGS AND PURPOSES.

        (a) Findings.--The Congress finds that--
                (1) the year 2000 marks the 175th Anniversary of
            New York State's creation and stewardship of the Erie
            Canalway for commerce, transportation and recreational
            purposes, establishing the network which made new York
            the ``Empire State'' and the Nation's premier
            commercial and financial center;
                (2) the canals and adjacent areas that comprise the
            Erie Canalway are a nationally significant resource of
            historic and recreational value, which merit Federal
            recognition and assistance;
                (3) the Erie Canalway was instrumental in the
            establishment of strong political and cultural ties
            between New England, upstate New York and the old
            Northwest and facilitated the movement of ideas and
            people ensuring that social reforms like the abolition
            of slavery and the women's rights movement spread
            across upstate New York to the rest of the country;
                (4) the construction of the Erie Canalway was
            considered a supreme engineering feat, and most
            American canals were modeled after New York State's
            canal;
                (5) at the time of construction, the Erie Canalway
            was the largest public works project ever undertaken by
            a state, resulting in the creation of critical
            transportation and commercial routes to transport
            passengers and goods;
                (6) the Erie Canalway played a key role in turning
            New York City into a major port and New York State into
            the preeminent center for commerce, industry, and
            finance in North America and provided a permanent
            commercial link between the Port of New York and the
            cities of eastern Canada, a cornerstone of the peaceful
            relationship between the two countries;
                (7) the Erie Canalway proved the depth and force of
            American ingenuity, solidified a national identity, and
            found an enduring place in American legend, song, and
            art;
                (8) there is national interest in the preservation
            and interpretation of the Erie Canalway's important
            historical, natural, cultural, and scenic resources;
            and
                (9) partnerships among Federal, State, and local
            governments and their regional entities, non-profit
            organizations, and the private sector offer the most
            effective opportunities for the preservation and
            interpretation of the Erie Canalway.
        (b) Purposes.--The purposes of this title are--
                (1) to designate the Erie Canalway National
            Heritage Corridor;
                (2) to provide for and assist in the
            identification, preservation, promotion, maintenance
            and interpretation of the historical, natural,
            cultural, scenic, and recreational resources of the
            Erie Canalway in ways that reflect its national
            significance for the benefit of current and future
            generations;
                (3) to promote and provide access to the Erie
            Canalway's historical, natural, cultural, scenic and
            recreational resources;
                (4) to provide a frame work to assist the State of
            New York, its units of local government, and the
            communities within the Erie Canalway in the development
            of integrated cultural, historical, recreational,
            economic, and community development programs in order
            to enhance and interpret the unique and nationally
            significant resources of the Erie Canalway; and
                (5) to authorize Federal financial and technical
            assistance to the Commission to serve these purposes
            for the benefit of the people of the State of New York
            and the nation.

    SEC. 803. THE ERIE CANALWAY NATIONAL HERITAGE CORRIDOR.

        (a) Establishment.--To carry out the purposes of this title
    there is established the Erie Canalway National Heritage
    Corridor in the State of New York.
        (b) Boundaries.--The boundaries of the Corridor shall
    include those lands generally depicted on a map entitled ``Erie
    Canalway National Heritage Area'' numbered ERIE/80,000 and
    dated October 2000. This map shall be on file and available for
    public inspection in the appropriate office of the National
    Park Service, the office of the Commission, and the office of
    the New York State Canal Corporation in Albany, New York.
        (c) Ownership and Operation of the New York State Canal
    System.--The New York State Canal System shall continue to be
    owned, operated, and managed by the State of New York.

    SEC. 804. THE ERIE CANALWAY NATIONAL HERITAGE CORRIDOR COMMISSION.

        (a) Establishment.--There is established the Erie Canalway
    National Heritage Corridor Commission. The purpose of the
    Commission shall be--
                (1) to work with Federal, State, and local
            authorities to develop and implement the Canalway Plan;
            and
                (2) to foster the integration of canal-related
            historical, cultural, recreational, scenic, economic
            and community development initiatives within the
            Corridor.
        (b) Membership.--The Commission shall be composed of 27
    members as follows:
                (1) The Secretary of the Interior, ex-officio or
            the Secretary's designee.
                (2) 7 members, appointed by the Secretary after
            consideration of recommendations submitted by the
            Governor and other appropriate officials, with
            knowledge and experience of the following agencies or
            those agencies' successors: The New York State
            Secretary of State, the New York State Department of
            Environment Conservation, the New York State Office of
            Parks, Recreation and Historic Preservation, the New
            York State Department of Agriculture and Markets, the
            New York State Department of Transportation, and the
            New York State Canal Corporation, and the Empire State
            Development Corporation.
                (3) The remaining 19 members who reside within the
            Corridor and are geographically dispersed throughout
            the Corridor shall be from local governments and the
            private sector with knowledge of tourism, economic and
            community development, regional planning, historic
            preservation, cultural or natural resource management,
            conservation, recreation, and education or museum
            services. These members will be appointed by the
            Secretary as follows--
                        (A) 11 members based on a recommendation
                    from each member of the United States House of
                    Representatives whose district shall encompass
                    the Corridor. Each shall be a resident of the
                    district from which they shall be recommended.
                        (B) 2 members based on a recommendation
                    from each United States Senator from New York
                    State.
                        (C) 6 members who shall be residents of any
                    county constituting the Corridor. One such
                    member shall have knowledge and experience of
                    the Canal Recreationway Commission.
        (c) Appointments and Vacancies.--Members of the Commission
    other than ex-officio members shall be appointed for terms of 3
    years. Of the original appointments, 6 shall be for a term of 1
    year, 6 shall be for a term of 2 years and 7 shall be for a
    term of 3 years. Any member of the Commission appointed for a
    definite term may serve after expiration of the term until the
    successor of the member is appointed. Any member appointed to
    fill a vacancy shall serve for the remainder of the term for
    which the predecessor was appointed. Any vacancy on the
    Commission shall be filled in the same manner in which the
    original appointment was made.
        (d) Compensation.--Members of the Commission shall receive
    no compensation for their service on the Commission. Members of
    the Commission, other than employees of the State and Canal
    Corporation, while away from their homes or regular places of
    business to perform services for the Commission, shall be
    allowed travel expenses, including per diem in lieu of
    subsistence, in the same manner as persons employed
    intermittently in Government service are allowed under section
    5703 of title 5, United States Code.
        (e) Election of Officers.--The Commission shall elect the
    chairperson and the vice chairperson on an annual basis. The
    vice chairperson shall serve as the chairperson in the absence
    of the chairperson.
        (f) Quorum and Voting.--14 members of the Commission shall
    constitute a quorum but a lesser number may hold hearings. Any
    member of the Commission may vote by means of a signed proxy
    exercised by another member of the Commission, however, any
    member voting by proxy shall not be considered present for
    purposes of establishing a quorum. For the transaction of any
    business or the exercise of any power of the Commission, the
    Commission shall have the power to act by a majority vote of
    the members present at any meeting at which a quorum is in
    attendance.
        (g) Meetings.--The Commission shall meet at least quarterly
    at the call of the chairperson or 14 of its members. Notice of
    Commission meetings and agendas for the meeting shall be
    published in local newspapers throughout the Corridor. Meetings
    of the Commission shall be subject to section 552b of title 5,
    United States Code (relating to open meetings).
        (h) Powers of the Commission.--To the extent that Federal
    funds are appropriated, the Commission is authorized--
                (1) to procure temporary and intermittent services
            and administrative facilities at rates determined to be
            reasonable by the Commission to carry out the
            responsibilities of the Commission;
                (2) to request and accept the services of personnel
            detailed from the State of New York or any political
            subdivision, and to reimburse the State or political
            subdivision for such services;
                (3) to request and accept the services of any
            Federal agency personnel, and to reimburse the Federal
            agency for such services;
                (4) to appoint and fix the compensation of staff to
            carry out its duties;
                (5) to enter into cooperative agreements with the
            State of New York, with any political subdivision of
            the State, or any person for the purposes of carrying
            out the duties of the Commission;
                (6) to make grants to assist in the preparation and
            implementation of the Canalway Plan;
                (7) to seek, accept, and dispose of gifts,
            bequests, grants, or donations of money, personal
            property, or services, received from any source. For
            purposes of section 170(c) of the Internal Revenue Code
            of 1986, any gift to the Commission shall be deemed to
            be a gift to the United States;
                (8) to assist others in developing educational,
            informational, and interpretive programs and
            facilities, and other such activities that may promote
            the implementation of the Canalway Plan;
                (9) to hold hearings, sit and act at such times and
            places, take such testimony, and receive such evidence,
            as the Commission may consider appropriate; the
            Commission may not issue subpoenas or exercise any
            subpoena authority;
                (10) to use the United States mails in the same
            manner as other departments or agencies of the United
            States;
                (11) to request and receive from the Administrator
            of General Services, on a reimbursable basis, such
            administrative support services as the Commission may
            request; and
                (12) to establish such advisory groups as the
            Commission deems necessary.
        (i) Acquisition of Property.--Except as provided for
    leasing administrative facilities under subsection 804(h)(1),
    the Commission may not acquire any real property or interest in
    real property.
        (j) Termination.--The Commission shall terminate on the day
    occurring 10 years after the date of the enactment of this
    title.

    SEC. 805. DUTIES OF THE COMMISSION.

        (a) Preparation of Canalway Plan.--Not later than 3 years
    after the Commission receives Federal funding for this purpose,
    the Commission shall prepare and submit a comprehensive
    preservation and management Canalway Plan for the Corridor to
    the Secretary and the Governor for review and approval. In
    addition to the requirements outlined for the Canalway Plan in
    section 806, the Canalway Plan shall incorporate and integrate
    existing federal, state, and local plans to the extent
    appropriate regarding historic preservation, conservation,
    education and interpretation, community development, and
    tourism-related economic development for the Corridor that are
    consistent with the purpose of this title. The Commission shall
    solicit public comment on the development of the Canalway Plan.
        (b) Implementation of Canalway Plan.--After the Commission
    receives Federal funding for this purpose, and after review and
    upon approval of the Canalway Plan by the Secretary and the
    Governor, the Commission shall--
                (1) undertake action to implement the Canalway Plan
            so as to assist the people of the State of New York in
            enhancing and interpreting the historical, cultural,
            educational, natural, scenic, and recreational
            potential of the Corridor identified in the Canalway
            Plan; and
                (2) support public and private efforts in
            conservation and preservation of the Canalway's
            cultural and natural resources and economic
            revitalization consistent with the goals of the
            Canalway Plan.
        (c) Priority Actions.--Priority actions which may be
    carried out by the Commission under subsection 805(b), include
    the following:
                (1) assisting in the appropriate preservation
            treatment of the remaining elements of the original
            Erie Canal;
                (2) assisting the State, and local governments, and
            nonprofit organizations in designing, establishing and
            maintaining visitor centers, museums, and other
            interpretive exhibits in the Corridor;
                (3) assisting in the public awareness and
            appreciation for the historic, cultural, natural,
            scenic, and recreational resources and sites in the
            Corridor;
                (4) assisting the State of New York, local
            governments, and nonprofit organizations in the
            preservation and restoration of any historic building,
            site, or district in the Corridor;
                (5) encouraging, by appropriate means, enhanced
            economic development in the Corridor consistent with
            the goals of the Canalway Plan and the purposes of this
            title; and
                (6) ensuring that clear, consistent signs
            identifying access points and sites of interest are put
            in place in the Corridor.
        (d) Annual Reports and Audits.--For any year in which
    Federal funds have been received under this title, the
    Commission shall submit an annual report and shall make
    available an audit of all relevant records to the Governor and
    the Secretary identifying its expenses and any income, the
    entities to which any grants or technical assistance were made
    during the year for which the report was made, and
    contributions by other parties toward achieving Corridor
    purposes.

    SEC. 806. CANALWAY PLAN.

        (a) Canalway Plan Requirements.--The Canalway Plan shall--
                (1) include a review of existing plans for the
            Corridor, including the Canal Recreationway Plan and
            Canal Revitalization Program, and incorporate them to
            the extent feasible to ensure consistence with local,
            regional and state planning efforts;
                (2) provide a thematic inventory, survey, and
            evaluation of historic properties that should be
            conserved, restored, developed, or maintained because
            of their natural, cultural, or historic significance
            within the Corridor in accordance with the regulations
            for the National Register of Historic Places;
                (3) identify public and private-sector preservation
            goals and strategies for the Corridor;
                (4) include a comprehensive interpretive plan that
            identifies, develops, supports, and enhances
            interpretation and education programs within the
            Corridor that may include--
                        (A) research related to the construction
                    and history of the canals and the cultural
                    heritage of the canal workers, their families,
                    those that traveled along the canals, the
                    associated farming activities, the landscape,
                    and the communities;
                        (B) documentation of and methods to support
                    the perpetuation of music, art, poetry,
                    literature and folkways associated with the
                    canals; and
                        (C) educational and interpretative programs
                    related to the Erie Canalway developed in
                    cooperation with State and local governments,
                    educational institutions, and nonprofit
                    institutions;
                (5) include a strategy to further the recreational
            development of the Corridor that will enable users to
            uniquely experience the canal system;
                (6) propose programs to protect, interpret and
            promote the Corridor's historical, cultural,
            recreational, educational, scenic and natural
            resources;
                (7) include an inventory of canal-related natural,
            cultural and historic sites and resources located in
            the Area;
                (8) recommend Federal, State, and local strategies
            and policies to support economic development,
            especially tourism-related development and recreation,
            consistent with the purposes of the Corridor;
                (9) develop criteria and priorities for financial
            preservation assistance;
                (10) identify and foster strong cooperative
            relationships between the National Parks Service, the
            New York State Canal Corporation, other Federal and
            State agencies, and nongovernmental organizations;
                (11) recommend specific areas for development of
            interpretive, educational, and technical assistance
            centers associated with the Corridor; and
                (12) contain a program for implementation of the
            Canalway Plan by all necessary parties.
        (b) Approval of the Canalway Plan.--The Secretary and the
    Governor shall approve or disapprove the Canalway Plan not
    later than 90 days after receiving the Canalway Plan.
        (c) Criteria.--The Secretary may not approve the plan
    unless the Secretary finds that the plan, if implemented, would
    adequately protect the significant historical, cultural,
    natural, and recreational resources of the Corridor and
    consistent with such protection provide adequate and
    appropriate outdoor recreational opportunities and economic
    activities within the Corridor. In determining whether or not
    to approve the Canalway Plan, the Secretary shall consider
    whether--
                (1) the Commission has afforded adequate
            opportunity, including public hearings, for public and
            governmental involvement in the preparation of the
            Canalway Plan; and
                (2) the Secretary has received adequate assurances
            from the Governor and appropriate state officials that
            the recommended implementation program identified in
            the plan will be initiated within a reasonable time
            after the date of approval of the Canalway Plan and
            such program will ensure effective implementation of
            State and local aspects of the Canalway Plan.
        (d) Disapproval of Canalway Plan.--If the Secretary or the
    Governor do not approve the Canalway Plan, the Secretary or the
    Governor shall advise the Commission in writing within 90 days
    the reasons therefore and shall indicate any recommendations
    for revisions. Following completion of any necessary revisions
    of the Canalway Plan, the Secretary and the Governor shall have
    90 days to either approve or disapprove of the revised Canalway
    Plan.
        (e) Amendments to Canalway Plan.--The Secretary and the
    Governor shall review substantial amendments to the Canalway
    Plan. Funds appropriated pursuant to this title may not be
    expended to implement the changes made by such amendments until
    the Secretary and the Governor approve the amendments.

    SEC. 807. DUTIES OF THE SECRETARY.

        (a) In General.--The Secretary is authorized to assist the
    Commission in the preparation of the Canalway Plan.
        (b) Technical Assistance.--Pursuant to an approved Canalway
    Plan, the Secretary is authorized to enter into cooperative
    agreements with, provide technical assistance to and award
    grants to the Commission to provide for the preservation and
    interpretation of the natural, cultural, historical,
    recreational, and scenic resources of the Corridor, if
    requested by the Commission.
        (c) Early Actions.--Prior to approval of the Canalway Plan,
    with the approval of the Commission, the Secretary may provide
    technical and planning assistance for early actions that are
    important to the purposes of this title and that protect and
    preserve resources.
        (d) Canalway Plan Implementation.--Upon approval of the
    Canalway Plan, the Secretary is authorized to implement those
    activities that the Canalway Plan has identified that are the
    responsibility of the Secretary or agent of the Secretary to
    undertake in the implementation of the Canalway Plan.
        (e) Detail.--Each fiscal year during the existence of the
    Commission and upon the request of the Commission, the
    Secretary shall detail to the Commission, on a nonreimbursable
    basis, 2 employees of the Department of the Interior to enable
    the Commission to carry out the Commission's duties with regard
    to the preparation and approval of the Canalway Plan. Such
    detail shall be without interruption or loss of civil service
    status, benefits, or privileges.

    SEC. 808. DUTIES OF OTHER FEDERAL ENTITIES.

        Any Federal entity conducting or supporting any activity
    directly affecting the Corridor, and any unit of government
    acting pursuant to a grant of Federal funds or a Federal permit
    or agreement conducting or supporting such activities may--
                (1) consult with the Secretary and the Commission
            with respect to such activities;
                (2) cooperate with the Secretary and the Commission
            in carrying out their duties under this title and
            coordinate such activities with the carrying out of
            such duties; and
                (3) conduct or support such activities in a manner
            consistent with the Canalway Plan unless the Federal
            entity, after consultation with the Secretary and the
            Commission, determines there is no practicable
            alternative.

    SEC. 809. SAVINGS PROVISIONS.

        (a) Authority of Governments.--Nothing in this title shall
    be construed to modify, enlarge, or diminish any authority of
    the Federal, State, or local governments to regulate any use of
    land as provided for by law or regulation.
        (b) Zoning or Land.--Nothing in this title shall be
    construed to grant powers of zoning or land use to the
    Commission.
        (c) Local Authority and Private Property.--Nothing in this
    title shall be construed to affect or to authorize the
    Commission to interfere with--
                (1) the rights of any person with respect to
            private property;
                (2) any local zoning ordinance or land use plan of
            the State of New York or political subdivision thereof;
            or
                (3) any State or local canal related development
            plans including but not limited to the Canal
            Recreationway Plan and the Canal Revitalization
            Program.
        (d) Fish and Wildlife.--The designation of the Corridor
    shall not be diminish the authority of the State of New York to
    manage fish and wildlife, including the regulation of fishing
    and hunting within the Corridor.

    SEC. 810. AUTHORIZATION OF APPROPRIATIONS.

        (a) In General.--
                (1) Corridor.--There is authorized to be
            appropriated for the Corridor not more than $1,000,000
            for any fiscal year. Not more than a total of
            $10,000,000 may be appropriated for the Corridor under
            this title.
                (2) Matching requirement.--Federal funding provided
            under this paragraph may not exceed 50 percent of the
            total cost of any activity carried out with such funds.
            The non-Federal share of such support may be in the
            form of cash, services, or in-kind contributions,
            fairly valued.
        (b) Other Funding.--In addition to the sums authorized in
    subsection (a), there are authorized to be appropriated to the
    Secretary of the Interior such sums as are necessary for the
    Secretary for planning and technical assistance.

                      TITLE IX--LAW ENFORCEMENT PAY EQUITY

    SEC. 901. SHORT TITLE

        This title may be cited as the ``Law Enforcement Pay Equity
    Act of 2000''.

    SEC. 902. ESTABLISHMENT OF UNIFORM SALARY SCHEDULE FOR UNITED STATES
                        SECRET SERVICE UNIFORMED DIVISION AND UNITED STATES
                        PARK POLICE.

        (a) In General.--Section 501(c)(1) of the District of
    Columbia Police and Firemen's Salary Act of 1958 (sec. 4-
    416(c)(1), DC Code) is amended to read as follows:
        ``(c)(1) The annual rates of basic compensation of officers
    and members of the United States Secret Service Uniformed
    Division and the United States Park Police, serving in classes
    corresponding or similar to those in the salary schedule in
    section 101, shall be fixed in accordance with the following
    schedule of rates:

    ----------------------------------------------------------------------------------------------------------------
          ``Salary class and title         Step 1     Step 2     Step 3     Step 4     Step 5     Step 6     Step 7
    ----------------------------------------------------------------------------------------------------------------
              Time between steps                     52 weeks
                                                          104 weeks
    ----------------------------------------------------------------------------------------------------------------
               Years in service                         1          2          3          5          7          9
    ----------------------------------------------------------------------------------------------------------------
    1: Private.........................     32,623     34,587     36,626     38,306     41,001     43,728     45,407
    3: Detective.......................                           42,378     44,502     46,620     48,746     50,837
    4: Sergeant........................                                      46,151     48,446     50,746     53,056
    5: Lieutenant \1\..................                                                 50,910     53,462     56,545
    7: Captain \1\.....................                                                            59,802     62,799
    8: Inspector/Major \1\.............                                                            69,163     72,760
    9: Deputy Chief \1\................                                                            79,768     85,158
    10: Assistant Chief \2\
    11: Chief, United States Secret
     Service Uniformed Division, United
     States Park Police \3\
    ----------------------------------------------------------------------------------------------------------------
    \1\ The rate of basic pay for positions in Salary Class 5, 7, 8, and 9 is limited to 95 percent of the rate of
      pay for level V of the Executive Schedule.
    \2\ The rate of basic pay for positions in Salary Class 10 will be equal to 95 percent of the rate of pay for
      level V of the Executive Schedule.
    \3\ The rate of basic pay for positions in Salary Class 11 will be equal to the rate of pay for level V of the
      Executive Schedule.

    ----------------------------------------------------------------------------------------------------------------
          ``Salary class and title         Step 8     Step 9    Step 10    Step 11    Step 12    Step 13    Step 14
    ----------------------------------------------------------------------------------------------------------------
              Time between steps               104 weeks       156 weeks                   208 weeks
    ----------------------------------------------------------------------------------------------------------------
               Years in service              11         13         15         18         22         26         30
    ----------------------------------------------------------------------------------------------------------------
    1: Private.........................     47,107     48,801     50,498     53,448     55,394     57,036     58,746
    3: Detective.......................     52,972     55,086     57,204     61,212     63,337     65,462     67,426
    4: Sergeant........................     55,372     57,691     59,999     63,558     65,867     68,176     70,221
    5: Lieutenant \1\..................     59,120     61,688     64,258     68,197     70,744     73,290     75,489
    7: Captain \1\.....................     65,797     68,757     71,747     76,292     79,309     82,325     84,796
    8: Inspector/Major \1\.............     76,542     80,524     83,983     87,645     91,827     95,464     99,075
    9: Deputy Chief \1\................     90,578     95,980     99,968    103,957    107,945    111,933    115,291
    10: Assistant Chief \2\
    11: Chief, United States Secret
     Service Uniformed Division, United
     States Park Police \3\
    ----------------------------------------------------------------------------------------------------------------
    \1\ The rate of basic pay for positions in Salary Class 5, 7, 8, and 9 is limited to 95 percent of the rate of
      pay for level V of the Executive Schedule.
    \2\ The rate of basic pay for positions in Salary Class 10 will be equal to 95 percent of the rate of pay for
      level V of the Executive Schedule.
    \3\ The rate of basic pay for positions in Salary Class 11 will be equal to the rate of pay for level V of the
      Executive Schedule.

        (b) Freeze of Current Rate for Locality-based Comparability
    Adjustments.--Notwithstanding any other provision of law,
    including this title or any provision of law amended by this
    title, no officer or member of the United States Secret Service
    Uniformed Division or the United States Park Police may be paid
    locality pay under section 5304 or section 5304a of title 5,
    United States Code, at a percentage rate for the applicable
    locality in excess of the rate in effect for pay periods during
    calendar year 2000.
        (c) Conforming Amendments.--
                (1) Application of provisions to park police.--
            Section 501(c) of such Act (sec. 4-416(c), DC Code) is
            amended--
                        (A) in paragraph (2), by striking
                    ``Treasury'' and inserting the following:
                    ``Treasury, and the annual rates of basic
                    compensation of officers and members of the
                    United States Park Police shall be adjusted by
                    the Secretary of the Interior,'';
                        (B) in paragraph (5), by inserting after
                    ``Uniformed Division'' the following: ``or
                    officers and members of the United States Park
                    Police'';
                        (C) in paragraph (6)(A), by inserting after
                    ``Uniformed Division'' the following: ``or the
                    United States Park Police''; and
                        (D) in paragraph (7)(A), by inserting after
                    ``Uniformed Division'' the following: ``or the
                    United States Park Police''.
                (2) Termination of current adjustment authority.--
            Section 501(b) of such Act (sec. 4-416(b), DC Code) is
            amended by adding at the end the following new
            paragraph:
        ``(4) This subsection shall not apply with respect to any
    pay period for which the salary schedule under subsection (c)
    applies to the United States Park Police.''.

    SEC. 903. REVISION OF CAPS ON MAXIMUM COMPENSATION.

        (a) Annual Salary Under Schedule.--Section 501(c)(2) of the
    District of Columbia Police and Firemen's Salary Act of 1958
    (sec. 4-416(c)(2), DC Code) is amended by striking the period
    at the end and inserting the following: ``, except that in no
    case may the annual rate of basic compensation for any such
    officer or member exceed the rate of basic pay payable for
    level IV of the Executive Schedule contained in subchapter II
    of chapter 53 of title 5, United States Code.''.
        (b) Repeal of Cap on Combined Basic Pay and Longevity
    Pay.--Section 501(c) of such Act (sec. 4-416(c), DC Code) is
    amended by striking paragraph (4).
        (c) Limitation on Pay Period Earnings for Comp Time.--
    Section 1(h) of the Act entitled ``An Act to provide a five-day
    week for officers and members of the Metropolitan Police force,
    the United States Park Police force, and the White House Police
    force, and for other purposes'', approved August 15, 1950 (sec.
    4-1104(h), DC Code), is amended--
                (1) in paragraphs (1) and (2), by striking
            ``Metropolitan Police force; or of the Fire Department
            of the District of Columbia; or of the United States
            Park Police'' each place it appears and inserting
            ``Metropolitan Police force or of the Fire Department
            of the District of Columbia''; and
                (2) in paragraph (3), by inserting after ``United
            States Secret Service Uniformed Division'' each place
            it appears the following: ``or of the United States
            Park Police''.

    SEC. 904. DETERMINATION OF SERVICE STEP ADJUSTMENTS.

        (a) Method for Determination of Adjustments.--Section
    303(a) of the District of Columbia Police and Firemen's Salary
    Act of 1958 (sec. 4-412(a), DC Code) is amended--
                (1) in the matter preceding paragraph (1), by
            ``Each'' and inserting ``Except as provided in
            paragraph (5), each''; and
                (2) by adding at the end the following new
            paragraph:
                ``(5) Each officer and member of the United States
            Secret Service Uniformed Division and the United States
            Park Police with a current performance rating of
            `satisfactory' or better, shall have a service step
            adjustment in the following manner:
                        ``(A) Each officer and member in service
                    step 1, 2, or 3 shall be advanced in
                    compensation successively to the next higher
                    service step at the beginning of the 1st pay
                    period immediately subsequent to the completion
                    of 52 calendar weeks of active service in the
                    officer's or member's service step.
                        ``(B) Each officer and member in service
                    step 4, 5, 6, 7, 8, or 9 shall be advanced in
                    compensation successively to the next higher
                    service step at the beginning of the 1st pay
                    period immediately subsequent to the completion
                    of 104 calendar weeks of active service in the
                    officer's or member's service step.
                        ``(C) Each officer and member in service
                    step 10 shall be advanced in compensation
                    successively to the next higher service step at
                    the beginning of the 1st pay period immediately
                    subsequent to the completion of 156 calendar
                    weeks of active service in the officer's or
                    member's service step.
                        ``(D) Each officer and member in service
                    steps 11 or 12, or 13 shall be advanced in
                    compensation successively to the next higher
                    service step at the beginning of the 1st pay
                    period immediately subsequent to the completion
                    of 208 calendar weeks of active service in the
                    officer's or member's service step.''.
        (b) Use of Total Creditable Service To Determine Step
    Placement.--Section 304 of such Act (sec. 4-413, DC Code) is
    amended--
                (1) in subsection (a), by striking ``(b)'' and
            inserting ``(b) or (c)''; and
                (2) by adding at the end the following new
            subsection:
        ``(c)(1) Each officer and member of the United States
    Secret Service Uniformed Division or the United States Park
    Police who is promoted or transferred to a higher salary shall
    receive basic compensation in accordance with the officer's or
    member's total creditable service.
        ``(2) For purposes of this subsection, an officer's or
    member's creditable service is any police service in pay status
    with the United States Secret Service Uniformed Division,
    United States Park Police, or Metropolitan Police
    Department.''.
        (c) Conforming Amendment.--Section 401(a) of such Act (sec.
    4-415(a), DC Code) is amended by adding at the end the
    following new paragraph:
        ``(4) This subsection shall not apply to officers and
    members of the United States Secret Service Uniformed Division
    or the United States Park Police.''.

    SEC. 905. CONVERSION TO NEW SALARY SCHEDULE.

        (a) In General.--
                (1) Determination of rates of basic pay.--Effective
            on the 1st day of the 1st pay period beginning six
            months after the date of enactment of this Act, the
            Secretary of the Treasury shall fix the rates of basic
            pay for officers and members of the United States
            Secret Service Uniformed Division, and the Secretary of
            the Interior shall fix the rates of basic pay for
            officers and members of the United States Park Police,
            in accordance with this subsection.
                (2) Placement on revised salary schedule.--
                        (A) In general.--Each officer and member
                    shall be placed in and receive basic
                    compensation at the corresponding scheduled
                    service step of the salary schedule under
                    section 501(c) of the District of Columbia
                    Police and Firemen's Salary Act of 1958 (as
                    amended by section 902(a)) in accordance with
                    the member's total years of creditable service,
                    receiving credit for all service step
                    adjustments. If the scheduled rate of pay for
                    the step to which the officer or member would
                    be assigned in accordance with this paragraph
                    is lower than the officer's or member's salary
                    immediately prior to the enactment of this
                    paragraph, the officer or member will be placed
                    in and receive compensation at the next higher
                    service step.
                        (B) Credit for increases during
                    transition.--Each member whose position is to
                    be converted to the salary schedule under
                    section 501(b) of the District of Columbia
                    Police and Firemen's Salary Act of 1958 (as
                    amended by subsection (a)) and who, prior to
                    the effective date of this section has earned,
                    but has not been credited with, an increase in
                    his or her rate of pay shall be afforded that
                    increase before such member is placed in the
                    corresponding service step in the salary
                    schedule under section 501(b).
                        (C) Creditable service described.--For
                    purposes of this paragraph, an officer's or
                    member's creditable service is any police
                    service in pay status with the United States
                    Secret Service Uniformed Division, United
                    States Park Police, or Metropolitan Police
                    Department.
        (b) Hold Harmless for Current Total Compensation.--
    Notwithstanding any other provision of law, if the total rate
    of compensation for an officer or employee for any pay period
    occurring after conversion to the salary schedule pursuant to
    subsection (a) (determined by taking into account any locality-
    based comparability adjustments, longevity pay, and other
    adjustments paid in addition to the rate of basic compensation)
    is less than the officer's or employee's total rate of
    compensation (as so determined) on the date of enactment, the
    rate of compensation for the officer or employee for the pay
    period shall be equal to--
                (1) the rate of compensation on the date of
            enactment (as so determined); increased by
                (2) a percentage equal to 50 percent of sum of the
            percentage adjustments made in the rate of basic
            compensation under section 501(c) of the District of
            Columbia Police and Firemen's Salary Act of 1958 (as
            amended by subsection (a)) for pay periods occurring
            after the date of enactment and prior to the pay period
            involved.
        (c) Conversion Not Treated as Transfer or Promotion.--The
    conversion of positions and individuals to appropriate classes
    of the salary schedule under section 501(c) of the District of
    Columbia Police and Firemen's Salary Act of 1958 (as amended by
    section 902(a)) and the initial adjustments of rates of basic
    pay of those positions and individuals in accordance with
    subsection (a) shall not be considered to be transfers or
    promotions within the meaning of section 304 of the District of
    Columbia Police and Firemen's Salary Act of 1958 (sec. 4-413,
    DC Code).
        (d) Transfer of Credit for Satisfactory Service.--Each
    individual whose position is converted to the salary schedule
    under section 501(c) of the District of Columbia Police and
    Firemen's Salary Act of 1958 (as amended by section 902(a)) in
    accordance with subsection (a) shall be granted credit for
    purposes of such individual's first service step adjustment
    under the salary schedule in such section 501(c) for all
    satisfactory service performed by the individual since the
    individual's last increase in basic pay prior to the adjustment
    under that section.
        (e) Adjustment To Take Into Account General Schedule
    Adjustments During Transition.--The rates provided under the
    salary schedule under section 501(c) of the District of
    Columbia Police and Firemen's Salary Act of 1958 (as amended by
    section 902(a)) shall be increased by the percentage of any
    annual adjustment applicable to the General Schedule authorized
    under section 5303 of title 5, United States Code, which takes
    effect during the period which begins on the date of the
    enactment of this Act and ends on the 1st day of the 1st pay
    period beginning six months after the date of enactment of this
    Act.
        (f) Conversion Not Treated as Salary Increase for Purposes
    of Certain Pensions and Allowances.--The conversion of
    positions and individuals to appropriate classes of the salary
    schedule under section 501(c) of the District of Columbia
    Police and Firemen's Salary Act of 1958 (as amended by section
    2(a)) and the initial adjustments of rates of basic pay of
    those positions and individuals in accordance with subsection
    (a) shall not be treated as an increase in salary for purposes
    of section 3 of the Act entitled ``An Act to provide increased
    pensions for widows and children of deceased members of the
    Police Department and the Fire Department of the District of
    Columbia'', approved August 4, 1949 (sec. 4-604, DC Code), or
    section 301 of the District of Columbia Police and Firemen's
    Salary Act of 1953 (sec. 4-605, DC Code).

    SEC. 906. PAY ADJUSTMENTS FOR CERTAIN POSITIONS.

        (a) Technician Duty.--Section 302 of the District of
    Columbia Police and Firemen's Salary Act of 1958 (sec. 4-411,
    DC Code) is amended--
                (1) in subsection (b), by striking ``$810 per
            annum'' and inserting the following: ``$810 per annum,
            except in the case of an officer or member of the
            United States Secret Service Uniformed Division or the
            United States Park Police, who shall receive a per
            annum amount equal to 6 percent of the sum of such
            officer's or member's rate of basic compensation plus
            locality pay adjustments'';

    SEC. 907. CONFORMING PROVISIONS RELATING TO FEDERAL LAW ENFORCEMENT PAY
                        REFORM ACT.

        (a) Termination of Existing Special Salary Rates and
    Adjustments.--Beginning on the effective date of this Act--
                (1) no existing special salary rates shall be
            authorized for members of the United States Park Police
            under section 5305 of title 5, United States Code (or
            any previous similar provision of law); and
                (2) no special rates of pay or special pay
            adjustments shall be applicable to members of the
            United States Park Police pursuant to section 405 of
            the Federal Law Enforcement Pay Reform Act of 1990.
        (b) Conforming Amendments.--(1) Section 405(b) of the
    Federal Law Enforcement Pay Reform Act of 1990 (5 U.S.C. 5303
    note) is amended to read as follows:
        ``(b) This subsection applies with respect to any--
                ``(1) special agent within the Diplomatic Security
            Service;
                ``(2) probation officer (referred to in section
            3672 of title 18, United States Code); or
                ``(3) pretrial services officer (referred to in
            section 3153 of title 18, United States Code).''.
        (2) Section 405(c) of such Act (5 U.S.C. 5303 note) is
    amended to read as follows:
        ``(c) For purposes of this section, the term `appropriate
    agency head' means--
                ``(1) with respect to any individual under
            subsection (b)(1), the Secretary of State; or
                ``(2) with respect to any individual under
            subsection (b)(2) or (b)(3), the Director of the
            Administrative Office of the United States Courts.''.

    SEC. 908. SERVICE LONGEVITY PAYMENTS FOR METROPOLITAN POLICE
                        DEPARTMENT.

        (a) Inclusion of Service Longevity Payments in Amount of
    Federal Benefit Payments Made to Metropolitan Police Department
    Officers and Members.--Section 11012 of the District of
    Columbia Retirement Protection Act of 1997 (Public Law 105-33;
    111 Stat. 718; D.C. Code, sec. 1-762.2) is amended by adding at
    the end the following new subsection:
        ``(e) Treatment of Increases in Certain Police Service
    Longevity Payments.--For purposes of subsection (a), in
    determining the amount of a Federal benefit payment made to an
    officer or member of the Metropolitan Police Department, the
    benefit payment to which the officer or member is entitled
    under the District Retirement Program shall include any amounts
    which would have been included in the benefit payment under
    such Program if the amendments made by the Police Recruiting
    and Retention Enhancement Amendment Act of 1999 had taken
    effect prior to the freeze date.''.
        (b) Conforming Amendment.--Section 11003(5) of such Act
    (Public Law 105-33; 111 Stat. 717; D.C. Code, sec. 1-761.2(5))
    is amended by inserting after ``except as'' the following:
    ``provided under section 11012(e) and as''.
        (c) Effective Date.--The amendments made by this section
    shall apply with respect to Federal benefit payments made after
    the date of the enactment of this Act.

    SEC. 909. EFFECTIVE DATE.

        Except as provided in section 908(c), this title and the
    amendments made by this title shall become effective on the 1st
    day of the 1st pay period beginning 6 months after the date of
    enactment.

              TITLE X--DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

                           Administrative Provisions

          Sec. 1001. Section 206(d) of the Departments of Veterans
    Affairs and Housing and Urban Development, and Independent
    Agencies Appropriations Act, 2000 (42 U.S.C. 12701 note) is
    amended--
                (1) in paragraph (1), by striking ``V'' and
            inserting ``III''; and
                (2) in paragraph (4), by striking ``reimbursable''
            and inserting ``non-reimbursable''.
          Sec. 1002. For purposes of Part 2, Subpart B of the
    Federal Housing Enterprises Financial Safety and Soundness Act
    of 1992 (Public Law 102-550), notwithstanding any other
    provision of law or regulation, for purposes of measuring the
    extent of compliance with the housing goals for the years 2001,
    2002, and 2003, the Secretary of Housing and Urban Development
    shall assign, in the case of the Federal Home Loan Mortgage
    Corporation, 1.35 units of credit toward achievement of each
    housing goal for each unit of multifamily housing (excepting
    units located in properties having between five and fifty
    units) qualifying as affordable under such housing goal.
          Sec. 1003. Notwithstanding any other provision of law,
    neither the City of Toledo, Ohio, nor the Secretary of Housing
    and Urban Development (HUD) is required to enforce any
    requirements associated with Housing Development Grant number
    00H006H6402 provided to the City of Toledo, Ohio, that prohibit
    or restrict the conversion of the rental units in the Beacon
    Place project to condominium ownership: Provided, that the City
    of Toledo and the Secretary of HUD are authorized to take any
    actions necessary to cause any such prohibition or restriction
    to be removed from the appropriate land records and otherwise
    terminated: Provided further, That converted units shall remain
    available as rental housing to those persons, including low-
    and very-low income persons who presently reside in the units:
    Provided further, That the conversion proposal for Beacon Place
    apartments shall not reduce the number of affordable housing
    units in Toledo: Provided further, That any and all proceeds
    from such conversion are used to retire debt associated with
    the Beacon Place project or to rehabilitate the properties
    known as the Cubbon Properties.
          Sec. 1004. The Comptroller General of the United States
    shall conduct a study on the following topics--
                (a)(1) The adequacy of the capital structure of the
            Federal Home Loan Bank (FHLB) System as it relates to
            the risks posed by: (A) the traditional advances
            business of the FHLB System; (B) the expanded
            collateral provisions and permissible uses of advances
            under the Gramm-Leach-Bliley Act of 1999; and (C) the
            MPF, and other programs providing for the direct
            acquisition of mortgages. The analysis should examine
            the credit risk, interest rate risk, and operations
            risk associated with each structure;
                (2) The risks associated with further growth in the
            direct acquisition of mortgages by the Federal Home
            Loan Bank System; and
                (3) A comparison of the risk-based capital standard
            proposed by the Federal Housing Finance Board for the
            Federal Home Loan Bank System to the standard proposed
            by the Office of Federal Housing Enterprise Oversight
            for the Federal National Mortgage Association and the
            Federal Home Loan Mortgage Corporation.
                (b) Not later than six months after the date of the
            enactment of this Act, the Comptroller General shall
            submit to the Committee on Banking, Housing, and Urban
            Affairs of the Senate and the Committee on Banking and
            Financial Services of the House of Representatives a
            report on the study required under subsection (a).

                      TITLE XI--DEPARTMENT OF THE TREASURY

                            Administrative Provision

    SEC. 1101. HONORING THE NAVAJO CODE TALKERS.

          (a) Congress finds that--
                (1) On December 7, 1941, the Japanese Empire
            attacked Pearl Harbor and war was declared by Congress
            the following day;
                (2) The military code, developed by the United
            States for transmitting messages, had been deciphered
            by the Japanese, and a search by United States
            Intelligence was made to develop new means to counter
            the enemy;
                (3) The United States government called upon the
            Navajo Nation to support the military effort by
            recruiting and enlisting twenty-nine Navajo men to
            serve as Marine Corps Radio Operators;
                (4) the number of Navajo enlistees later increased
            to more than three hundred and fifty;
                (5) at the time, the Navajos were often treated as
            second-class citizens, and they were a people who were
            discouraged from using their own native language;
                (6) the Navajo Marine Corps Radio Operators, who
            became known as the ``Navajo Code Talkers'', were used
            to develop a code using their native language to
            communicate military messages in the Pacific;
                (7) to the enemy's frustration, the code developed
            by these Native Americans proved to be unbreakable, and
            was used extensively throughout the Pacific theater;
                (8) the Navajo language, discouraged in the past,
            was instrumental in developing the most significant and
            successful military code of the time;
                (9) at Iwo Jima alone, the Navajo Code Talkers
            passed over 800 error-free messages in a 48-hour
            period;
                (10) Use of the Navajo Code was so successful,
            that--
                        (A) military commanders credited it in
                    saving the lives of countless American soldiers
                    and in the success of the engagements of the
                    United States in the battles of Guadalcanal,
                    Tarawa, Saipan, Iwo Jima, and Okinawa;
                        (B) some Code Talkers were guarded by
                    fellow marines, whose role was to kill them in
                    case of imminent capture by the enemy; and
                        (C) the Navajo code was kept secret for 23
                    years after the end of World War II;
                (11) following the conclusion of World War II, the
            Department of Defense maintained the secrecy of the
            Navajo code until it was declassified in 1968; and
                (12) only then did a realization of the sacrifice
            and valor of these brave Native Americans emerge from
            history.
          (b)(1) To express recognition by the United States and
    its citizens in honoring the Navajo Code Talkers, who
    distinguished themselves in performing a unique, highly
    successful communications operation that greatly assisted in
    saving countless lives and hastening the end of World War II in
    the Pacific, the President is authorized--
                (A) to award to each of the original twenty-nine
            Navajo Code Talkers, or a surviving family member, on
            behalf of the Congress, a gold medal of appropriate
            design, honoring the Navajo Code Talkers; and
                (B) to award to each person who qualified as a
            Navajo Code Talker (MOS 642), or a surviving family
            member, on behalf of the Congress, a silver medal of
            appropriate design, honoring the Navajo Code Talkers.
          (2) For purposes of the awards authorized by paragraph
    (l), the Secretary of the Treasury (in this section referrd to
    as the ``Secretary'') shall strike gold and silver medals with
    suitable emblems, devices, and inscriptions, to be determined
    by the Secretary.
          (c) The Secretary may strike and sell duplicates in
    bronze of the medals struck pursuant to this section, under
    such regulations as the Secretary may prescribe, and a price
    sufficient to cover the costs thereof, including labor,
    materials, dies, use of machinery, and overhead expenses, and
    the cost of the medals.
          (d) The medals struck pursuant to this section are
    national medals for purposes of chapter 51, of title 31, United
    States Code.
          (e)(1) There is authorized to be charged against the
    United States Mint Public Enterprise Fund, such sums as may be
    necessary to pay for the costs of the medals authorized by this
    section.
          (2) Amounts received from the sale of duplicate medals
    under this section shall be deposited in the United States Mint
    Public Enterprise Fund.

                   TITLE XII--ENVIRONMENTAL PROTECTION AGENCY

                            Administrative Provision

    SEC. 1201. ABOVEGROUND STORAGE TANK GRANT PROGRAM.

          (a) Definitions.--In this provision:
                (1) Aboveground storage tank.--The term
            ``aboveground storage tank'' means any tank or
            combination of tanks (including any connected pipe)--
                        (A) that is used to contain an accumulation
                    of regulated substances; and
                        (B) the volume of which (including the
                    volume of any connected pipe) is located wholly
                    above the surface of the ground.
                (2) Administrator.--The term ``Administrator''
            means the Administrator of the Environmental Protection
            Agency.
                (3) Denali commission.--The term ``Denali
            Commission'' means the commission established by
            section 303(a) of the Denali Commission Act of 1998 (42
            U.S.C. 3121 note).
                (4) Federal environmental law.--The term ``Federal
            environmental law'' means--
                        (A) the Oil Pollution Control Act of 1990
                    (33 U.S.C. 2701 et seq.);
                        (B) the Comprehensive Environmental
                    Response, Compensation, and Liability Act of
                    1980 (42 U.S.C. 9601 et seq.);
                        (C) the Soild Waste Disposal Act (42 U.S.C.
                    6901 et seq.); or
                        (D) the Federal Water Pollution Control Act
                    (33 U.S.C. 1251 et seq.); or
                        (E) any other Federal law that is
                    applicable to the release into the environment
                    of a regulated substance, as determined by the
                    Administrator.
                (5) Native village.--The term ``Native village''
            has the meaning given the term in section 11(b) in
            Public Law 92-203 (85 Stat. 688).
                (6) Program.--The term ``program'' means the
            Aboveground Storage Tank Grant Program established by
            subsection (b)(1).
                (7) Regulated substance.--The term ``regulated
            substance'' has the meaning given the term in section
            9001 of the Solid Waste Disposal Act (42 U.S.C. 6991).
                (8) State.--The term ``State'' means the State of
            Alaska.
          (b) Establishment.--
                (1) In general.--There is established a grant
            program to be known as the ``Aboveground Storage Tank
            Grant Program''.
                (2) Grants.--Under the program, the Administrator
            shall award a grant to--
                        (A) the State, on behalf of a Native
                    village; or
                        (B) the Denali Commission.
          (c) Use of Grants.--The State or the Denali Commission
    shall use the funds of a grant under subsection (b) to repair,
    upgrade, or replace 1 or more aboveground storage tanks that--
                (1) leaks or poses an imminent threat of leaking,
            as certified by the Administrator, the Commandant of
            the Coast Guard, or any other appropriate Federal or
            State agency (as determined by the Administrator); and
                (2) is located in a Native village--
                        (A) the median household income of which is
                    less than 80 percent of the median household
                    income in the State;
                        (B) that is located--
                                (i) within the boundaries of--
                                        (I) a unit of the National
                                    Park System;
                                        (II) a unit of the National
                                    Wildlife Refuge System; or
                                        (III) a National Forest; or
                                (ii) on public land under the
                            administrative jurisdiction of the
                            Bureau of Land Management; or
                        (C) that receives payments from the Federal
                    Government under chapter 69 of title 31, United
                    States Code (commonly known as ``payments in
                    lieu of taxes'').
          (d) Reports.--Not later than 1 year after the date on
    which the State or the Denali Commission receives a grant under
    subsection (c), and annually thereafter, the State or the
    Denali Commission, as the case may be, shall submit a report
    describing each project completed with grant funds and any
    projects planned for the following year, to--
                (1) the Administrator;
                (2) the Committee on Resources of the House of
            Representatives;
                (3) the Committee on Environment and Public Works
            of the Senate;
                (4) the Committee on Appropriations of the House of
            Representatives; and
                (5) the Committee on Appropriations of the Senate.
          (e) Authorization of Appropriations.--There are
    authorized to be appropriated to carry out this Act, to remain
    available until expended--
                (1) $20,000,000 for year 2001; and
                (2) such sums as are necessary for each fiscal year
            thereafter.

           TITLE XIII--NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

                            Administrative Provision

          Sec. 1301. Of the proceeds in any fiscal year from the
    sale of timber on Federal property at the John C. Stennis Space
    Center, or on additional real property within the restricted
    easement area adjacent to the Center, any funds that are in
    excess of the amount necessary for the expenses of commonly
    accepted forest management practices on such properties may be
    retained and used by the National Aeronautics and Space
    Administration for the acquisition from willing sellers of up
    to a total of 500 acres of real property to establish education
    and visitor programs and facilities that promote and preserve
    the regional and national history of the area, including the
    contributions of Stennis Space Center, and, as necessary, for
    wetlands mitigation.

               TITLE XIV--CERTAIN ALASKAN CRUISE SHIP OPERATIONS

    SECTION 1401. PURPOSE.

          The purpose of this Title is to--
          (a) Ensure that cruise vessels operating in the waters of
    the Alexander Archipelago and the navigable waters of the
    United States within the State of Alaska and within the
    Kachemak Bay National Estuarine Research Reserve comply with
    all applicable environmental laws, including, but not limited
    to, the Federal Water Pollution Control Act, as amended (33
    U.S.C. 1251 et seq.), the Act to Prevent Pollution from Ships,
    as amended (33 U.S.C. 1901 et seq.), and the protections
    contained within this Title.
          (b) Ensure that cruise vessels do not discharge untreated
    sewage within the waters of the Alexander Archipelago, the
    navigable waters of the United States in the State of Alaska,
    or within the Kachemak Bay National Estuarine Research Reserve.
          (c) Prevent the unregulated discharge of treated sewage
    and graywater while in ports in the State of Alaska or
    traveling near the shore in the Alexander Archipelago and the
    navigable waters of the United States in the State of Alaska or
    within the Kachemak Bay National Estuarine Research Reserve.
        (d) Ensure that discharges of sewage and graywater from
    cruise vessels operating in the Alexander Archipelago and the
    navigable waters of the United States in the State of Alaska or
    within the Kachemak Bay National Estuarine Research Reserve can
    be monitored for compliance with the requirements contained in
    this Title.

    SEC. 1402. APPLICABILITY.

        (a) This Title applies to all cruise vessels authorized to
    carry 500 or more passengers for hire.

    SEC. 1403. PROHIBITION ON DISCHARGE OF UNTREATED SEWAGE.

        No person shall discharge any untreated sewage from a
    cruise vessel into the waters of the Alexander Archipelago or
    the navigable waters of the United States within the State of
    Alaska or within the Kachemak Bay National Estuarine Research
    Reserve.

    SEC. 1404. LIMITATIONS ON DISCHARGE OF TREATED SEWAGE OR GRAYWATER.

        (a) No person shall discharge any treated sewage or
    graywater from a cruise vessel into the waters of the Alexander
    Archipelago or the navigable waters of the United States within
    the State of Alaska or within the Kachemak Bay National
    Estuarine Research Reserve unless--
                (1) the cruise vessel is underway and proceeding at
            a speed of not less than six knots;
                (2) the cruise vessel is not less than one nautical
            mile from the nearest shore, except in areas designated
            by the Secretary, in consultation with the State of
            Alaska;
                (3) the discharge complies with all applicable
            cruise vessel effluent standards established pursuant
            to this Title and any other applicable law; and
                (4) the cruise vessel is not in an area where the
            discharge of treated sewage or graywater is prohibited.
        (b) The Administrator, in consultation with the Secretary,
    may promulgate regulations allowing the discharge of treated
    sewage or graywater, otherwise prohibited under paragraphs
    (a)(1) and (a)(2) of this section, where the discharge meets
    effluent standards determined by the Administrator as
    appropriate for discharges into the marine environment. In
    promulgating such regulations, the Administrator shall take
    into account the best available scientific information on the
    environmental effects of the regulated discharges. The effluent
    discharge standards promulgated under this section shall, at a
    minimum, be consistent with all relevant State of Alaska water
    quality standards in force at the time of the enactment of this
    Title.
        (c) Until such time as the Administrator promulgates
    regulations under paragraph (b) of this section, treated sewage
    and graywater may be discharged from vessels subject to this
    Title in circumstances otherwise prohibited under paragraphs
    (a)(1) and (a)(2) of this section, provided that--
                (1) the discharge satisfies the minimum level of
            effluent quality specified in 40 CFR 133.102, as in
            effect on the date of enactment of this Section;
                (2) the geometric mean of the samples from the
            discharge during any 30-day period does not exceed 20
            fecal coliform/100 ml and not more than 10 percent of
            the samples exceed 40 fecal coliform/100 ml;
                (3) concentrations of total residual chlorine may
            not exceed 10.0 g/l; and,
                (4) prior to any such discharge occurring, the
            owner, operator or master, or other person in charge of
            a cruise vessel, can demonstrate test results from at
            least five samples taken from the vessel representative
            of the effluent to be discharged, on different days
            over a 30-day period, conducted in accordance with the
            guidelines promulgated by the Administrator in 40 CFR
            Part 136, which confirm that the water quality of the
            effluents proposed for discharge is in compliance with
            paragraphs (1), (2) and (3) of this subsection. To the
            extent not otherwise being done by the owner, operator,
            master or other person in charge of a cruise vessel
            pursuant to section 1406, the owner, operator, master
            or other person in charge of a cruise vessel shall
            demonstrate continued compliance through periodic
            sampling. Such sampling and test results shall be
            considered environmental compliance records that must
            be made available for inspection pursuant to section
            1406(d) of this Title.

    SEC. 1405. SAFETY EXCEPTION.

        Sections 1403 and 1404 of this Title shall not apply to
    discharges made for the purpose of securing the safety of the
    cruise vessel or saving life at sea, provided that all
    reasonable precautions have been taken for the purpose of
    preventing or minimizing the discharge.

    SEC. 1406. INSPECTION AND SAMPLING REGIME.

        (a) The Secretary shall incorporate into the commercial
    vessel examination program an inspection regime sufficient to
    verify that cruise vessels visiting ports in the State of
    Alaska or operating in the waters of the Alexander Archipelago
    or the navigable waters of the United States within the State
    of Alaska or within the Kachemak Bay National Estuarine
    Research Reserve are in full compliance with this Title, the
    Federal Water Pollution Control Act, as amended, and any
    regulations issued thereunder, other applicable Federal laws
    and regulations, and all applicable international treaty
    requirements.
        (b) The inspection regime shall, at a minimum, include--
                (1) examination of environmental compliance records
            and procedures;
                (2) inspection of the functionality and proper
            operation of installed equipment for abatement and
            control of any discharge;
        (c) The inspection regime may--
                (1) include unannounced inspections of any aspect
            of cruise vessel operations, equipment or discharges
            pertinent to the verification under subsection (a) of
            this section; and
                (2) require the owner, operator or master, or other
            person in charge of a cruise vessel subject to this
            Title to maintain and produce a logbook detailing the
            times, types, volumes or flow rates and locations of
            any discharges of sewage or graywater under this Title.
        (d) The inspection regime shall incorporate a plan for
    sampling and testing cruise vessel discharges to ensure that
    any discharges of sewage or graywater are in compliance with
    this Title, the Federal Water Pollution Control Act, as
    amended, and any other applicable laws and regulations, and may
    require the owner, operator or master, or other person in
    charge of a cruise vessel subject to this Title to conduct such
    samples or tests, and to produce any records of such sampling
    or testing at the request of the Secretary or Administrator.

    SEC. 1407. CRUISE VESSEL EFFLUENT STANDARDS.

        Pursuant to this Title and the authority of the Federal
    Water Pollution Control Act, as amended, the Administrator may
    promulgate effluent standards for treated sewage and graywater
    from cruise vessels operating in the waters of the Alexander
    Archipelago or the navigable waters of the United States within
    the State of Alaska or within the Kachemak Bay National
    Estuarine Research Reserve. Regulations implementing such
    standards shall take into account the best available scientific
    information on the environmental effects of the regulated
    discharges and the availability of new technologies for
    wastewater treatment. Until such time as the Administrator
    promulgates such effluent standards, treated sewage effluent
    discharges shall not have a fecal coliform bacterial count of
    greater than 200 per 100 milliliters nor suspended solids
    greater than 150 milligrams per liter.

    SEC. 1408. REPORTS.

        (a) Any owner, operator or master, or other person in
    charge of a cruise vessel who has knowledge of a discharge from
    the cruise vessel in violation of section 1403 or 1404 or
    pursuant to section 1405 of this Title, or any regulations
    promulgated thereunder, shall immediately report that discharge
    to the Secretary, who shall provide a copy to the Administrator
    upon request.
        (b) The Secretary may prescribe the form of reports
    required under this section.

    SEC. 1409. ENFORCEMENT.

        (a) Administrative Penalties.--
                (1) Violations.--Any person who violates section
            1403, 1404, 1408, or 1413 of this Title, or any
            regulations promulgated pursuant to this Title may be
            assessed a class I or class II civil penalty by the
            Secretary or the Administrator.
                (2) Classes of penalties.--
                        (A) Class i.--The amount of a class I civil
                    penalty under this section may not exceed
                    $10,000 per violation, except that the maximum
                    amount of any class I civil penalty under this
                    section shall not exceed $25,000. Before
                    assessing a civil penalty under this clause,
                    the Secretary or Administrator, as the case may
                    be, shall give to the person to be assessed
                    such penalty written notice of the Secretary's
                    or Administrator's proposal to assess the
                    penalty and the opportunity to request, within
                    30 days of the date the notice is received by
                    such person, a hearing on the proposed penalty.
                    Such hearing shall not be subject to section
                    554 or 556 of Title 5, but shall provide a
                    reasonable opportunity to be heard and to
                    present evidence.
                        (B) Class ii.--The amount of a class II
                    civil penalty under this section may not exceed
                    $10,000 per day for each day during which the
                    violation continues, except that the maximum
                    amount of any class II civil penalty under this
                    section shall not exceed $125,000. Except as
                    otherwise provided in this subsection, a class
                    II civil penalty shall be assessed and
                    collected in the same manner, and subject to
                    the same provisions as in the case of civil
                    penalties assessed and collected after notice
                    and an opportunity for a hearing on the record
                    in accordance with section 554 of Title 5,
                    United States Code. The Secretary and
                    Administrator may issue rules for discovery
                    procedures for hearings under this paragraph.
                (3) Rights of interested persons.--
                        (A) Public notice.--Before issuing an order
                    assessing a class II civil penalty under this
                    section, the Secretary or Administrator, as the
                    case may be, shall provide public notice of and
                    reasonable opportunity to comment on the
                    proposed issuance of each order.
                        (B) Presentation of evidence.--Any person
                    who comments on a proposed assessment of a
                    class II civil penalty under this section shall
                    be given notice of any hearing held under this
                    paragraph and of the order assessing such
                    penalty. In any hearing held under this
                    paragraph, such person shall have a reasonable
                    opportunity to be heard and present evidence.
                        (C) Rights of interested persons to a
                    hearing.--If no hearing is held under
                    subsection (2) before issuance of an order
                    assessing a class II civil penalty under this
                    section, any person who commented on the
                    proposed assessment may petition, within 30
                    days after the issuance of such order, the
                    Administrator or Secretary, as the case may be,
                    to set aside such order and to provide a
                    hearing on the penalty. If the evidence
                    presented by the petitioner in support of the
                    petition is material and was not considered in
                    the issuance of the order, the Administrator or
                    Secretary shall immediately set aside such
                    order and provide a hearing in accordance with
                    subsection (2)(B). If the Administrator or
                    Secretary denies a hearing under this clause,
                    the Administrator or Secretary shall provide to
                    the petitioner, and publish in the Federal
                    Register, notice of and the reasons for such
                    denial.
                (4) Finality of order.--An order assessing a class
            II civil penalty under this paragraph shall become
            final 30 days after its issuance unless a petition for
            judicial review is filed under subparagraph (6) or a
            hearing is requested under subsection (3)(C). If such a
            hearing is denied, such order shall become final 30
            days after such denial.
                (5) Effect of action on compliance.--No action by
            the Administrator or Secretary under this paragraph
            shall affect any person's obligation to comply with any
            section of this Title.
                (6) Judicial review.--Any person against whom a
            civil penalty is assessed under this paragraph or who
            commented on the proposed assessment of such penalty in
            accordance with subsection (3) may obtain review of
            such assessment--
                        (A) in the case of assessment of a class I
                    civil penalty, in the United States District
                    Court for the District of Columbia or in the
                    District of Alaska, or
                        (B) in the case of assessment of a class II
                    civil penalty, in United States Court of
                    Appeals for the District of Columbia Circuit or
                    for any other circuit in which such person
                    resides or transacts business, by filing a
                    notice of appeal in such court within the 30-
                    day period beginning on the date the civil
                    penalty order is issued and by simultaneously
                    sending a copy of such notice by certified mail
                    to the Administrator or Secretary, as the case
                    may be, and the Attorney General. The
                    Administrator or Secretary shall promptly file
                    in such court a certified copy of the record on
                    which the order was issued. Such court shall
                    not set aside or remand such order unless there
                    is not substantial evidence in the record,
                    taken as a whole, to support the finding of a
                    violation or unless the Administrator's or
                    Secretary's assessment of the penalty
                    constitutes an abuse of discretion and shall
                    not impose additional civil penalties for the
                    same violation unless the Administrator's or
                    Secretary's assessment of the penalty
                    constitutes an abuse of discretion.
                (7) Collection.--If any person fails to pay an
            assessment of a civil penalty--
                        (A) after the assessment has become final,
                    or
                        (B) after a court in an action brought
                    under subsection (6) has entered a final
                    judgment in favor of the Administrator or
                    Secretary, as the case may be, the
                    Administrator or Secretary shall request the
                    Attorney General to bring a civil action in an
                    appropriate district court to recover the
                    amount assessed (plus interest at currently
                    prevailing rates from the date of the final
                    order or the date of the final judgment, as the
                    case may be). In such an action, the validity,
                    amount, and appropriateness of such penalty
                    shall not be subject to review. Any person who
                    fails to pay on a timely basis the amount of an
                    assessment of a civil penalty as described in
                    the first sentence of this subparagraph shall
                    be required to pay, in addition to such amount
                    and interest, attorneys fees and costs for
                    collection proceedings and a quarterly
                    nonpayment penalty for each quarter during
                    which such failure to pay persists. Such
                    nonpayment penalty shall be in an amount equal
                    to 20 percent of the aggregate amount of such
                    person's penalties and nonpayment penalties
                    which are unpaid as of the beginning of such
                    quarter.
                (8) Subpoenas.--The Administrator or Secretary, as
            the case may be, may issue subpoenas for the attendance
            and testimony of witnesses and the production of
            relevant papers, books, or documents in connection with
            hearings under this section. In case of contumacy or
            refusal to obey a subpoena issued pursuant to this
            subsection and served upon any person, the district
            court of the United States for any district in which
            such person is found, resides, or transacts business,
            upon application by the United States and after notice
            to such person, shall have jurisdiction to issue an
            order requiring such person to appear and give
            testimony before the Administrator or Secretary or to
            appear and produce documents before the Administrator
            or Secretary, or both, and any failure to obey such
            order of the court may be punished by such court as a
            contempt thereof.
        (b) Civil Penalties.--
                (1) Generally.--Any person who violates section
            1403, 1404, 1408 or 1413 of this Title, or any
            regulations promulgated pursuant to this Title shall be
            subject to a civil penalty not to exceed $25,000 per
            day for each violation. Each day a violation continues
            constitutes a separate violation.
                (2) Jurisdiction.--An action to impose a civil
            penalty under this section may be brought in the
            district court of the United States for the district in
            which the defendant is located, resides, or transacts
            business, and such court shall have jurisdiction to
            assess such penalty.
                (3) Limitation.--A person is not liable for a civil
            judicial penalty under this paragraph for a violation
            if the person has been assessed a civil administrative
            penalty under paragraph (a) for the violation.
        (c) Determination of Amount.--In determining the amount of
    a civil penalty under paragraphs (a) or (b) of this section,
    the court, the Secretary or the Administrator, as the case may
    be, shall consider the seriousness of the violation or
    violations, the economic benefit (if any) resulting from the
    violation, any history of such violations, any good-faith
    efforts to comply with the applicable requirements, the
    economic impact of the penalty on the violator, and other such
    matters as justice may require.
        (d) Criminal Penalties.--
                (1) Negligent violations.--Any person who
            negligently violates section 1403, 1404, 1408 or 1413
            of this Title, or any regulations promulgated pursuant
            to this Title commits a Class A misdemeanor.
                (2) Knowing violations.--Any person who knowingly
            violates section 1403, 1404, 1408 or 1413 of this
            Title, or any regulations promulgated pursuant to this
            Title commits a Class D felony.
                (3) False statements.--Any person who knowingly
            makes any false statement, representation, or
            certification in any record, report or other document
            filed or required to be maintained under this Title or
            the regulations issued thereunder, or who falsifies,
            tampers with, or knowingly renders inaccurate any
            testing or monitoring device or method required to be
            maintained under this Title, or the regulations issued
            thereunder, commits a Class D felony.
        (e) Awards.--
                (1) The Secretary, the Administrator or the court,
            when assessing any fines or civil penalties, as the
            case may be, may pay from any fines or civil penalties
            collected under this section an amount not to exceed
            one-half of the penalty or fine collected, to any
            individual who furnishes information which leads to the
            payment of the penalty or fine. If several individuals
            provide such information, the amount shall be divided
            equitably among such individuals. No officer or
            employee of the United States, the State of Alaska or
            any Federally recognized Tribe who furnishes
            information or renders service in the performance of
            his or her official duties shall be eligible for
            payment under this subsection.
                (2) The Secretary, Administrator or the court, when
            assessing any fines or civil penalties, as the case may
            be, may pay, from any fines or civil penalties
            collected under this section, to the State of Alaska or
            to any Federally recognized Tribe providing information
            or investigative assistance which leads to payment of
            the penalty or fine, an amount which reflects the level
            of information or investigative assistance provided.
            Should the State of Alaska or a Federally recognized
            Tribe and an individual under paragraph (1) of this
            section be eligible for an award, the Secretary, the
            Administrator or the court, as the case may be, shall
            divide the amount equitably.
        (f) Liability in Rem.--A cruise vessel operated in
    violation of this Title or the regulations issued thereunder is
    liable in rem for any fine imposed under subsection (d) of this
    section or for any civil penalty imposed under subsections (a)
    or (b) of this section, and may be proceeded against in the
    United States district court of any district in which the
    cruise vessel may be found.
        (g) Compliance Orders.--
                (1) In general.--Whenever on the basis of any
            information available to him the Administrator finds
            that any person is in violation of section 1403, 1404,
            1408 or 1413 of this Title, or any regulations
            promulgated pursuant to this Title, the Administrator
            shall issue an order requiring such person to comply
            with such section or requirement, or shall bring a
            civil action in accordance with subsection (b).
                (2) Copies of orders, service.--A copy of any order
            issued under this subsection shall be sent immediately
            by the Administrator to the State of Alaska. In any
            case in which an order under this subsection is issued
            to a corporation, a copy of such order shall be served
            on any appropriate corporate officer. Any order issued
            under this subsection shall be by personal service,
            shall state with reasonable specificity the nature of
            the violation, and shall specify a time for compliance
            not to exceed thirty days in the case of a violation of
            an interim compliance schedule or operation and
            maintenance requirement and not to exceed a time the
            Administrator determines to be reasonable in the case
            of a violation of a final deadline, taking into account
            the seriousness of the violation and any good faith
            efforts to comply with applicable requirements.
        (h) Civil Actions.--The Administrator is authorized to
    commence a civil action for appropriate relief, including a
    permanent or temporary injunction, for any violation for which
    he is authorized to issue a compliance order under this
    subsection. Any action under subsection (h) may be brought in
    the district court of the United States for the district in
    which the defendant is located or resides or is doing business,
    and such court shall have jurisdiction to restrain such
    violation and to require compliance. Notice of the commencement
    of such action shall be given immediately to the State of
    Alaska.

    SEC. 1410. DESIGNATION OF CRUISE VESSEL NO-DISCHARGE ZONES.

        If the State of Alaska determines that the protection and
    enhancement of the quality of some or all of the waters of the
    Alexander Archipelago or the navigable waters of the United
    States within the State of Alaska or within the Kachemak Bay
    National Estuarine Research Reserve require greater
    environmental protection, the State of Alaska may petition the
    Administrator to prohibit the discharge of graywater and sewage
    from cruise vessels operating in such waters. The establishment
    of such a prohibition shall be achieved in the same manner as
    the petitioning process and prohibition of the discharge of
    sewage pursuant to Section 312(f) of the Federal Water
    Pollution Control Act, as amended, and the regulations
    promulgated thereunder.

    SEC. 1411. SAVINGS CLAUSE.

        (a) Nothing in this Title shall be construed as
    restricting, affecting or amending any other law or the
    authority of any department, instrumentality or agency of the
    United States.
        (b) Nothing in this Title shall in any way affect or
    restrict, or be construed to affect or restrict, the authority
    of the State of Alaska or any political subdivision thereof--
                (1) to impose additional liability or additional
            requirements; or
                (2) to impose, or determine the amount of a fine or
            penalty (whether criminal or civil in nature) for any
            violation of law; relating to the discharge of sewage
            (whether treated or untreated) or graywater in the
            waters of the Alexander Archipelago and the navigable
            waters of the United States within the State of Alaska
            or within the Kachemak Bay National Estuarine Research
            Reserve.

    SEC. 1412. REGULATIONS.

        The Secretary and the Administrator each may prescribe any
    regulations necessary to carry out the provisions of this
    Title.

    SEC. 1413. INFORMATION GATHERING AUTHORITY.

        The authority of Sections 308(a) and (b) of the Federal
    Water Pollution Control Act, as amended, shall be available to
    the Administrator to carry out the provisions of this Title.
    The Administrator and the Secretary shall minimize, to the
    extent practicable, duplication of or inconsistency with the
    inspection, sampling, testing, recordkeeping and reporting
    requirements established by the Secretary under section 1406 of
    this Title.

    SEC. 1414. DEFINITIONS.

        In this title:
                (1) Administrator.--The term ``Administrator''
            means the Administrator of the United States
            Environmental Protection Agency.
                (2) Cruise vessel.--The term ``cruise vessel''
            means a passenger vessel as defined in section 2101(22)
            of Title 46, United States Code. The term ``cruise
            vessel'' does not include a vessel of the United States
            operated by the Federal Government or a vessel owned
            and operated by the government of a State.
                (3) Discharge.--The term ``discharge'' means any
            release however caused from a cruise vessel, and
            includes any escape, disposal, spilling, leaking,
            pumping, emitting or emptying.
                (4) Graywater.--The term ``graywater'' means only
            galley, dishwasher, bath, and laundry waste water. The
            term does not include other wastes or waste streams.
                (5) Navigable waters.--The term ``navigable
            waters'' has the same meaning as in section 502 of the
            Federal Water Pollution Control Act, as amended.
                (6) Person.--The term ``person'' means an
            individual, corporation, partnership, limited liability
            company, association, State, municipality, commission
            or political subdivision of a State, or any Federally
            recognized Tribe.
                (7) Secretary.--The term ``Secretary'' means the
            Secretary of the department in which the United States
            Coast Guard is operating.
                (8) Sewage.--The term ``sewage'' means human body
            wastes and the wastes from toilets and other
            receptacles intended to receive or retain body waste.
                (9) Treated sewage.--The term ``treated sewage''
            means sewage meeting all applicable effluent limitation
            standards and processing requirements of the Federal
            Water Pollution Control Act, as amended and of this
            Title, and regulations promulgated under either.
                (10) Untreated sewage.--The term ``untreated
            sewage'' means sewage that is not treated sewage.
                (11) Waters of the alexander archipelago.--The term
            ``waters of the Alexander Archipelago'' means all
            waters under the sovereignty of the United States
            within or near Southeast Alaska, beginning at a point
            58+11,41,,N, 136+39,25,,W [near Cape Spencer Light],
            thence southeasterly along a line three nautical miles
            seaward of the baseline from which the breadth of the
            territorial sea is measured in the Pacific Ocean and
            the Dixon Entrance, except where this line intersects
            geodesics connecting the following five pairs of
            points:
                (1) 58+05,17,,N, 136+33,49,,W and 58+11,41,,N,
            136+39,25,,W [Cross Sound]
                (2) 56+09,40,,N, 134+40,00,,W and 55+49,15,,N,
            134+17,40,,W [Chatham Strait]
                (3) 55+49,15,,N, 134+17,40,,W and 55+50,30,,N,
            133+54,15,,W [Sumner Strait]
                (4) 54+41,30,,N, 132+01,00,,W and 54+51,,30,,N,
            131+20,45,,W [Clarence Strait]
                (5) 54+51,30,,N, 131+20,45,,W and 54+46,15,,N,
            130+52,00,,W [Revillagigedo Channel]
    The portion of each such geodesic situated beyond 3 nautical
    miles from the baseline from which the breadth of the
    territorial sea is measured forms the outer limit of the waters
    of the Alexander Archipelago in those five locations.

                         TITLE XV--LIFE ACT AMENDMENTS

    SEC. 1501. SHORT TITLE.

        This title may be cited as the ``LIFE Act Amendments of
    2000''.

    SEC. 1502. SUBSTITUTION OF ALTERNATIVE ADJUSTMENT PROVISION.

        (a) Extended Application of Section 245(i).--
                (1) In general.--Paragraph (1) of section 245(i) of
            the Immigration and Nationality Act (8 U.S.C. 1255(i))
            is amended--
                        (A) in subparagraph (A), by striking
                    ``and'' at the end;
                        (B) in subparagraph (B)(i), by striking
                    ``January 14, 1998'' and inserting ``April 30,
                    2001'';
                        (C) in subparagraph (B), by adding ``and''
                    at the end; and
                        (D) by inserting after subparagraph (B) the
                    following new subparagraph:
                ``(C) who, in the case of a beneficiary of a
            petition for classification, or an application for
            labor certification, described in subparagraph (B) that
            was filed after January 14, 1998, is physically present
            in the United States on the date of the enactment of
            the LIFE Act Amendments of 2000;''.
                (2) Modification in use of funds.--Paragraph (3)(B)
            of such section is amended by inserting before the
            period the following: ``, except that in the case of
            fees attributable to applications for a beneficiary
            with respect to whom a petition for classification, or
            an application for labor certification, described in
            paragraph (1)(B) was filed after January 14, 1998, one-
            half of such remaining portion shall be deposited by
            the Attorney General into the Immigration Examinations
            Fee Account established under section 286(m)''.
        (b) Conforming Amendments.--
                (1) Subsection (m) of section 245 of the
            Immigration and Nationality Act, as added by section
            1102(c) of the Legal Immigration Family Equity Act, is
            repealed.
                (2) Section 245 of the Immigration and Nationality
            Act, as amended by section 1102(d)(2) of the Legal
            Immigration Family Equity Act, is amended by striking
            ``or (m)'' each place it appears.

    SEC. 1503. MODIFICATION OF SECTION 1104 ADJUSTMENT PROVISIONS.

        (a) Inclusion of Additional Class.--Section 1104(b) of the
    Legal Immigration Family Equity Act is amended--
                (1) in paragraph (1), by striking ``or'' at the
            end;
                (2) in paragraph (2), by striking the period at the
            end and inserting ``; or''; and
                (3) by adding at the end the following new
            paragraph:
                ``(3) Zambrano v. INS, vacated sub nom. Immigration
            and Naturalization Service v. Zambrano, 509 U.S. 918
            (1993).''.
        (b) Conforming Application of Consent Provision.--Section
    1104(c) of the Legal Immigration Family Equity Act is amended
    by adding at the end the following new paragraph:
                ``(10) Conforming application of consent
            provision.--In addition to the waivers provided in
            subsection (d)(2) of such section 245A of the
            Immigration and Nationality Act, the Attorney General
            may grant the alien a waiver of the grounds of
            inadmissibility under subparagraphs (A) and (C) of
            section 212(a)(9) of such Act (8 U.S.C. 1182(a)(9)). In
            granting such waivers, the Attorney General shall use
            standards used in granting consent under subparagraphs
            (A)(iii) and (C)(ii) of such section.''.
        (c) Inapplicability of Removal Order Reinstatement.--
    Section 1104 of such Act is further amended--
                (1) by redesignating subsection (g) as subsection
            (h); and
                (2) by inserting after subsection (f) the following
            new subsection:
        ``(g) Inapplicability of Removal Order Reinstatement.--
    Section 241(a)(5) of the Immigration and Nationality Act shall
    not apply with respect to an alien who is applying for
    adjusmtent of status under this section.''.

    SEC. 1504. APPLICATION OF FAMILY UNITY PROVISIONS TO SPOUSES AND
                        UNMARRIED CHILDREN OF CERTAIN LIFE ACT
                        BENEFICIARIES.

        (a) Immigration Benefits.--Except as provided in subsection
    (d), in the case of an eligible spouse or child (as described
    in subsection (b)), the Attorney General--
                (1) shall not remove the alien on a ground
            specified in paragraph (1)(A), (1)(B), (1)(C), or
            (3)(A) of section 237(a) of the Immigration and
            Nationality Act (8 U.S.C. 1227(a)), other than so much
            of paragraph (1)(A) of such section as relates to a
            ground of inadmissibility described in paragraph (2) or
            (3) of section 212(a) of such Act (8 U.S.C. 1182(a));
            and
                (2) shall authorize the alien to engage in
            employment in the United States during the period of
            time in which protection is provided under paragraph
            (1) and shall provide the alien with an ``employment
            authorized'' endorsement or other appropriate document
            signifying authorization of employment.
        (b) Eligible Spouses and Children.--For purposes of this
    section, the term ``eligible spouse or child'' means an alien
    who is the spouse or unmarried child of an alien described in
    section 1104(b) of the Legal Immigration Family Equity Act if
    the spouse or child--
                (1) entered the United States before December 1,
            1988; and
                (2) resided in the United States on such date.
        (c) Process for Relief for Eligible Spouses and Children
    Outside the United States.--If an alien has obtained lawful
    permanent resident status under section 1104 of the Legal
    Immigration Family Equity Act and the alien has an eligible
    spouse or child who is no longer physically present in the
    United States, the Attorney General shall establish a process
    under which the eligible spouse or child may be paroled into
    the United States in order to obtain the benefits of subsection
    (a) unless the Attorney General finds that the spouse or child
    would be inadmissible or deportable on any ground, other than a
    ground for which the alien would not be subject to removal
    under subsection (a)(1). An alien so paroled shall not be
    treated as paroled into the United States for purposes of
    section 201(c)(4) of the Immigration and Nationality Act (8
    U.S.C. 1151(c)(4)).
        (d) Exception.--An alien is not eligible for the benefits
    of this section if the Attorney General finds that--
                (1) the alien has been convicted of a felony or
            three or more misdemeanors in the United States; or
                (2) the alien is described in section 241(b)(3)(B)
            of the Immigration and Nationality Act (8 U.S.C.
            1231(b)(3)(B)).
        (e) Application of Definitions.--Except as otherwise
    specifically provided in this section, the definitions
    contained in the Immigration and Nationality Act shall apply in
    the administration of this section.

    SEC. 1505. MISCELLANEOUS AMENDMENTS TO VARIOUS ADJUSTMENT AND RELIEF
                        ACTS.

        (a) Nicaraguan Adjustment and Central American Relief
    Act.--
                (1) In general.--Section 202(a) of the Nicaraguan
            Adjustment and Central American Relief Act is amended--
                        (A) by redesignating paragraph (2) as
                    paragraph (3); and
                        (B) by inserting after paragraph (1) the
                    following new paragraph:
                ``(2) Rules in applying certain provisions.--In the
            case of an alien described in subsection (b) or (d) who
            is applying for adjustment of status under this
            section--
                        ``(A) the provisions of section 241(a)(5)
                    of the Immigration and Nationality Act shall
                    not apply; and
                        ``(B) the Attorney General may grant the
                    alien a waiver of the grounds of
                    inadmissibility under subparagraphs (A) and (C)
                    of section 212(a)(9) of such Act.
            In granting waivers under subparagraph (B), the
            Attorney General shall use standards used in granting
            consent under subparagraphs (A)(iii) and (C)(ii) of
            such section 212(a)(9).''.
                (2) Permitting motion to reopen.--Notwithstanding
            any time and number limitations imposed by law on
            motions to reopen exclusion, removal, or deportation
            proceedings (except limitations premised on an alien's
            conviction of an aggravated felony (as defined by
            section 101(a) of the Immigration and Nationality
            Act)), a national of Cuba or Nicaragua who has become
            eligible for adjustment of status under the Nicaraguan
            Adjustment and Central American Relief Act as a result
            of the amendments made by paragraph (1), may file one
            motion to reopen exclusion, deportation, or removal
            proceedings to apply for such adjustment under that
            Act. The scope of any proceeding reopened on this basis
            shall be limited to a determination of the alien's
            eligibility for adjustment of status under that Act.
            All such motions shall be filed within 180 days of the
            date of the enactment of this Act.
        (b) Haitian Refugee Immigration Fairness Act of 1998.--
                (1) Inapplicability of certain provisions.--Section
            902(a) of the Haitian Refugee Immigration Fairness Act
            of 1998 is amended--
                        (A) by redesignating paragraph (2) as
                    paragraph (3); and
                        (B) by inserting after paragraph (1) the
                    following new paragraph:
                ``(2) Inapplicability of certain provisions.--In
            the case of an alien described in subsection (b) or (d)
            who is applying for adjustment of status under this
            section--
                        ``(A) the provisions of section 241(a)(5)
                    of the Immigration and Nationality Act shall
                    not apply; and
                        ``(B) the Attorney General may grant the
                    alien a waiver of the grounds of
                    inadmissibility under subparagraphs (A) and (C)
                    of section 212(a)(9) of such Act.
            In granting waivers under subparagraph (B), the
            Attorney General shall use standards used in granting
            consent under subparagraphs (A)(iii) and (C)(ii) of
            such section 212(a)(9).''.
                (2) Permitting motion to reopen.--Notwithstanding
            any time and number limitations imposed by law on
            motions to reopen exclusion, removal, or deportation
            proceedings (except limitations premised on an alien's
            conviction of an aggravated felony (as defined by
            section 101(a) of the Immigration and Nationality
            Act)), a national of Haiti who has become eligible for
            adjustment of status under the Haitian Refugee
            Immigration Fairness Act of 1998 as a result of the
            amendments made by paragraph (1), may file one motion
            to reopen exclusion, deportation, or removal
            proceedings to apply for such adjustment under that
            Act. The scope of any proceeding reopened on this basis
            shall be limited to a determination of the alien's
            eligibility for adjustment of status under that Act.
            All such motions shall be filed within 180 days of the
            date of the enactment of this Act.
        (c) Section 309 of IIRIRA.--Section 309 of the Illegal
    Immigration Reform and Immigrant Responsibility Act of 1996 is
    amended by adding at the end the following new subsection:
        ``(h) Relief and Motions To Reopen.--
                ``(1) Relief.--An alien described in subsection
            (c)(5)(C)(i) who is otherwise eligible for--
                        ``(A) suspension of deportation pursuant to
                    section 244(a) of the Immigration and
                    Nationality Act, as in effect before the title
                    III-A effective date; or
                        ``(B) cancellation of removal, pursuant to
                    section 240A(b) of the Immigration and
                    Nationality Act and subsection (f) of this
                    section;
            shall not be barred from applying for such relief by
            operation of section 241(a)(5) of the Immigration and
            National Act, as in effect after the title III-A
            effective date.
                ``(2) Additional motion to reopen permitted.--
            Notwithstanding any limitation imposed by law on
            motions to reopen removal or deportation proceedings
            (except limitations premised on an alien's conviction
            of an aggravated felony (as defined by section 101(a)
            of the Immigration and Nationality Act)), any alien who
            is described in subsection (c)(5)(C)(i) and who has
            become eligible for cancellation of removal or
            suspension of deportation as a result of the enactment
            of paragraph (1) may file one motion to reopen removal
            or deportation proceedings in order to apply for
            cancellation of removal or suspension of deportation.
            The scope of any proceeding reopened on this basis
            shall be limited to a determination of the alien's
            eligibility for cancellation of removal or suspension
            of deportation. The Attorney General shall designate a
            specific time period in which all such motions to
            reopen are required to be filed. The period shall begin
            not later than 60 days after the date of the enactment
            of this subsection and shall extend for a period not to
            exceed 240 days.
                ``(3) Construction.--Nothing in this subsection
            shall preclude an alien from filing a motion to reopen
            pursuant to section 240(b)(5)(C)(ii) of the Immigration
            and Nationality Act, or section 242B(c)(3)(B) of such
            Act (as in effect before the title III-A effective
            date).''.

    SEC. 1506. EFFECTIVE DATE.

        This title shall take effect as if included in the
    enactment of the Legal Immigration Family Equity Act.

         TITLE XVI--IMPROVING LITERACY THROUGH FAMILY LITERACY PROJECTS

    SEC. 1601. SHORT TITLE.

        This title may be cited as the ``Literacy Involves Families
    Together Act''.

    SEC. 1602. AUTHORIZATION OF APPROPRIATIONS.

        Section 1002(b) of the Elementary and Secondary Education
    Act of 1965 (20 U.S.C. 6302(b)) is amended by striking
    ``$118,000,000 for fiscal year 1995'' and inserting
    ``$250,000,000 for fiscal year 2001''.

    SEC. 1603. IMPROVING BASIC PROGRAMS OPERATED BY LOCAL EDUCATIONAL
                        AGENCIES.

        Section 1111(c) of the Elementary and Secondary Education
    Act of 1965 (20 U.S.C. 6311(c)) is amended--
                (1) in paragraph (5), by striking ``and'' at the
            end;
                (2) in paragraph (6), by striking the period at the
            end and inserting ``; and''; and
                (3) by adding at the end the following:
                ``(7) the State educational agency will encourage
            local educational agencies and individual schools
            participating in a program assisted under this part to
            offer family literacy services (using funds under this
            part), if the agency or school determines that a
            substantial number of students served under this part
            by the agency or school have parents who do not have a
            high school diploma or its recognized equivalent or who
            have low levels of literacy.''.

    SEC. 1604. EVEN START FAMILY LITERACY PROGRAMS.

        (a) Part Heading.--The part heading for part B of title I
    of the Elementary and Secondary Education Act of 1965 (20
    U.S.C. 6361 et seq.) is amended to read as follows:

      ``PART B--WILLIAM F. GOODLING EVEN START FAMILY LITERACY PROGRAMS''.

        (b) Statement of Purpose.--Section 1201 of the Elementary
    and Secondary Education Act of 1965 (20 U.S.C. 6361) is
    amended--
                (1) in paragraph (1), by inserting ``high quality''
            after ``build on''; and
                (2) by amending paragraph (2) to read as follows:
                ``(2) promote the academic achievement of children
            and adults;'';
                (3) by striking the period at the end of paragraph
            (3) and inserting ``; and''; and
                (4) by adding at the end the following:
                ``(4) use instructional programs based on
            scientifically based reading research (as defined in
            section 2252) and the prevention of reading
            difficulties for children and adults, to the extent
            such research is available.''.
        (c) Program Authorized.--
                (1) Reservation for migrant programs, outlying
            areas, and indian tribes.--Section 1202(a) of the
            Elementary and Secondary Education Act of 1965 (20
            U.S.C. 6362(a)) is amended--
                        (A) in paragraph (1), in the matter
                    preceding subparagraph (A), by inserting ``(or,
                    if such appropriated amount exceeds
                    $200,000,000, 6 percent of such amount)'' after
                    ``1002(b)'';
                        (B) in paragraph (2), by striking ``If the
                    amount of funds made available under this
                    subsection exceeds $4,600,000,'' and inserting
                    ``After the date of the enactment of the
                    Literacy Involves Families Together Act,''; and
                        (C) by adding at the end the following:
                ``(3) Coordination of programs for american
            indians.--The Secretary shall ensure that programs
            under paragraph (1)(C) are coordinated with family
            literacy programs operated by the Bureau of Indian
            Affairs in order to avoid duplication and to encourage
            the dissemination of information on high quality family
            literacy programs serving American Indians.''.
                (2) Reservation for federal activities.--Section
            1202(b) of the Elementary and Secondary Education Act
            of 1965 (20 U.S.C. 6362(b)) is amended to read as
            follows:
        ``(b) Reservation for Federal Activities.--
                ``(1) Evaluation, technical assistance, program
            improvement, and replication activities.--From amounts
            appropriated under section 1002(b), the Secretary may
            reserve not more than 3 percent of such amounts for
            purposes of--
                        ``(A) carrying out the evaluation required
                    by section 1209; and
                        ``(B) providing, through grants or
                    contracts with eligible organizations,
                    technical assistance, program improvement, and
                    replication activities.
                ``(2) Research.--In the case of fiscal years 2001
            through 2004, if the amount appropriated under section
            1002(b) for any of such years--
                        ``(A) is equal to or less than the amounts
                    appropriated for the preceding fiscal year, the
                    Secretary may reserve from such amount only the
                    amount necessary to continue multi-year
                    activities carried out pursuant to section
                    1211(b) that began during or prior to the
                    preceding fiscal year; or
                        ``(B) exceeds the amount appropriated for
                    the preceding fiscal year, the Secretary shall
                    reserve from such excess amount $2,000,000 or
                    50 percent, whichever is less, to carry out
                    section 1211(b).''.
        (d) Reservation for Grants.--Section 1202(c)(1) of the
    Elementary and Secondary Education Act of 1965 (20 U.S.C.
    6362(c)(1)) is amended--
                (1) by striking ``From funds reserved under section
            2260(b)(3), the Secretary shall award grants,'' and
            inserting ``For any fiscal year for which at least one
            State applies and submits an application that meets the
            requirements and goals of this subsection and for which
            the amount appropriated under section 1002(b) exceeds
            the amount appropriated under such section for the
            preceding fiscal year, the Secretary shall reserve,
            from the amount of such excess remaining after the
            application of subsection (b)(2), the amount of such
            remainder or $1,000,000, whichever is less, to award
            grants,''; and
                (2) by adding at the end ``No State may receive
            more than one grant under this subsection.''.
        (e) Allocations.--Section 1202(d)(2) of the Elementary and
    Secondary Education Act of 1965 (20 U.S.C. 6362(d)(2)) is
    amended by striking ``that section'' and inserting ``that
    part''.
        (f) State Level Activities.--Section 1203(a) of the
    Elementary and Secondary Education Act of 1965 (20 U.S.C.
    6363(a)) is amended--
                (1) by striking ``5 percent'' and inserting ``a
            total of 6 percent''; and
                (2) in paragraph (1), by inserting before the
            semicolon the following: ``, not to exceed half of such
            total''.
        (g) Subgrants for Local Programs.--Section 1203(b)(2) of
    the Elementary and Secondary Education Act of 1965 (20 U.S.C.
    6363(b)(2)) is amended to read as follows:
                ``(2) Minimum subgrant amounts.--
                        ``(A) In general.--Except as provided in
                    subparagraphs (B) and (C), no State shall award
                    a subgrant under paragraph (1) in an amount
                    less than $75,000.
                        ``(B) Subgrantees in ninth and succeeding
                    years.--No State shall award a subgrant under
                    paragraph (1) in an amount less than $52,500 to
                    an eligible entity for a fiscal year to carry
                    out an Even Start program that is receiving
                    assistance under this part or its predecessor
                    authority for the ninth (or any subsequent)
                    fiscal year.
                        ``(C) Exception for single subgrant.--A
                    State may award one subgrant in each fiscal
                    year of sufficient size, scope, and quality to
                    be effective in an amount less than $75,000 if,
                    after awarding subgrants under paragraph (1)
                    for such fiscal year in accordance with
                    subparagraphs (A) and (B), less than $75,000 is
                    available to the State to award such
                    subgrants.''.
        (h) Uses of Funds.--Section 1204 of the Elementary and
    Secondary Education Act of 1965 (20 U.S.C. 6364) is amended--
                (1) in subsection (a), by striking ``family-
            centered education programs'' and inserting ``family
            literacy services''; and
                (2) by adding at the end the following:
        ``(c) Use of Funds for Family Literacy Services.--
                ``(1) In general.--From funds reserved under
            1203(a), a State may use a portion of such funds to
            assist eligible entities receiving a subgrant under
            section 1203(b) in improving the quality of family
            literacy services provided under Even Start programs
            under this part, except that in no case may a State's
            use of funds for this purpose for a fiscal year result
            in a decrease from the level of activities and services
            provided to program participants in the preceding year.
                ``(2) Priority.--In carrying out paragraph (1), a
            State shall give priority to programs that were of low
            quality, as evaluated based on the indicators of
            program quality developed by the State under section
            1210.
                ``(3) Technical assistance to help local programs
            raise additional funds.--In carrying out paragraph (1),
            a State may use the funds referred to in such paragraph
            to provide technical assistance to help local programs
            of demonstrated effectiveness to access and leverage
            additional funds for the purpose of expanding services
            and reducing waiting lists, including requesting and
            applying for non-Federal resources.
                ``(4) Technical assistance and training.--
            Assistance under paragraph (1) shall be in the form of
            technical assistance and training, provided by a State
            through a grant, contract, or cooperative agreement
            with an entity that has experience in offering high
            quality training and technical assistance to family
            literacy providers.''.
        (i) Program Elements.--Section 1205 of the Elementary and
    Secondary Education Act of 1965 (20 U.S.C. 6365) is amended--
                (1) by redesignating paragraphs (9) and (10) as
            paragraphs (14) and (15), respectively;
                (2) by redesignating paragraphs (5) through (8) as
            paragraphs (6) through (9), respectively;
                (3) by inserting after paragraph (4) the following:
                ``(5) with respect to the qualifications of staff
            the cost of whose salaries are paid, in whole or in
            part, with Federal funds provided under this part,
            ensure that--
                        ``(A) not later than 4 years after the date
                    of the enactment of the Literacy Involves
                    Families Together Act--
                                ``(i) a majority of the individuals
                            providing academic instruction--
                                        ``(I) shall have obtained
                                    an associate's, bachelor's, or
                                    graduate degree in a field
                                    related to early childhood
                                    education, elementary or
                                    secondary school education, or
                                    adult education; and
                                        ``(II) if applicable, shall
                                    meet qualifications established
                                    by the State for early
                                    childhood education, elementary
                                    or secondary school education,
                                    or adult education provided as
                                    part of an Even Start program
                                    or another family literacy
                                    program;
                                ``(ii) the individual responsible
                            for administration of family literacy
                            services under this part has received
                            training in the operation of a family
                            literacy program; and
                                ``(iii) paraprofessionals who
                            provide support for academic
                            instruction have a high school diploma
                            or its recognized equivalent; and
                        ``(B) beginning on the date of the
                    enactment of the Literacy Involves Families
                    Together Act, all new personnel hired to
                    provide academic instruction--
                                ``(i) have obtained an associate's,
                            bachelor's, or graduate degree in a
                            field related to early childhood
                            education, elementary or secondary
                            school education, or adult education;
                            and
                                ``(ii) if applicable, meet
                            qualifications established by the State
                            for early childhood education,
                            elementary or secondary school
                            education, or adult education provided
                            as part of an Even Start program or
                            another family literacy program;'';
                (4) in paragraph (8) (as so redesignated by
            paragraph (2), by striking ``or enrichment'' and
            inserting ``and enrichment''.
                (5) by inserting after paragraph (9) (as so
            redesignated by paragraph (2)) the following:
                ``(10) use instructional programs based on
            scientifically based reading research (as defined in
            section 2252) for children and adults, to the extent
            such research is available;
                ``(11) encourage participating families to attend
            regularly and to remain in the program a sufficient
            time to meet their program goals;
                ``(12) include reading readiness activities for
            preschool children based on scientifically based
            reading research (as defined in section 2252), to the
            extent available, to ensure children enter school ready
            to learn to read;
                ``(13) if applicable, promote the continuity of
            family literacy to ensure that individuals retain and
            improve their educational outcomes''; and
                (5) in paragraph (14) (as so redesignated), by
            striking ``program.'' and inserting ``program to be
            used for program improvement.''.
        (j) Eligible Participants.--Section 1206 of the Elementary
    and Secondary Education Act of 1965 (20 U.S.C. 6366) is
    amended--
                (1) in subsection (a)(1)(B) by striking ``part;''
            and inserting ``part, or who are attending secondary
            school;''; and
                (2) in subsection (b), by adding at the end the
            following:
                ``(3) Children 8 years of age or older.--If an Even
            Start program assisted under this part collaborates
            with a program under part A, and funds received under
            such part A program contribute to paying the cost of
            providing programs under this part to children 8 years
            of age or older, the Even Start program,
            notwithstanding subsection (a)(2), may permit the
            participation of children 8 years of age or older if
            the focus of the program continues to remain on
            families with young children.''.
        (k) Plan.--Section 1207(c) of the Elementary and Secondary
    Education Act of 1965 (20 U.S.C. 6367(c)) is amended--
                (1) in paragraph (1)--
                        (A) in the matter preceding subparagraph
                    (A), by inserting ``and continuous
                    improvement'' after ``plan of operation'';
                        (B) in subparagraph (A), by striking
                    ``goals;'' and inserting ``objectives,
                    strategies to meet such objectives, and how
                    they are consistent with the program indicators
                    established by the State;'';
                        (C) in subparagraph (E), by striking
                    ``and'' at the end;
                        (D) in subparagraph (F)--
                                (i) by striking ``Act, the Goals
                            2000: Educate America Act,'' and
                            inserting ``Act''; and
                                (ii) by striking the period at the
                            end and inserting ``; and''; and
                        (E) by adding at the end the following:
                        ``(G) a description of how the plan
                    provides for rigorous and objective evaluation
                    of progress toward the program objectives
                    described in subparagraph (A) and for
                    continuing use of evaluation data for program
                    improvement.''; and
                (2) in paragraph (2), in the matter preceding
            subparagraph (A), by striking ``(1)(A)'' and inserting
            ``(1)''.
        (l) Award of Subgrants.--Section 1208 of the Elementary and
    Secondary Education Act of 1965 (20 U.S.C. 6368) is amended--
                (1) in subsection (a)--
                        (A) in paragraph (1)(B)--
                                (i) by striking ``including a
                            high'' and inserting ``such as a
                            high''; and
                                (ii) by striking ``part A;'' and
                            inserting ``part A, a high number or
                            percentage of parents who have been
                            victims of domestic violence, or a high
                            number or percentage of parents who are
                            receiving assistance under a State
                            program funded under part A of title IV
                            of the Social Security Act (42 U.S.C.
                            601 et seq.);'';
                        (B) in paragraph (1)(F), by striking
                    ``Federal'' and inserting ``non-Federal'';
                        (C) in paragraph (1)(H), by inserting
                    ``family literacy projects and other'' before
                    ``local educational agencies''; and
                        (D) in paragraph (3), in the matter
                    preceding subparagraph (A), by striking ``one
                    or more of the following individuals:'' and
                    inserting ``one individual with expertise in
                    family literacy programs, and may include other
                    individuals, such as one or more of the
                    following:''; and
                (2) in subsection (b)--
                        (A) by striking paragraph (3) and inserting
                    the following:
                ``(3) Continuing eligibility.--In awarding subgrant
            funds to continue a program under this part after the
            first year, the State educational agency shall review
            the progress of each eligible entity in meeting the
            objectives of the program referred to in section
            1207(c)(1)(A) and shall evaluate the program based on
            the indicators of program quality developed by the
            State under section 1210.''; and
                        (B) by amending paragraph (5)(B) to read as
                    follows:
                ``(B) The Federal share of any subgrant renewed
            under subparagraph (A) shall be limited in accordance
            with section 1204(b).''.
        (m) Research.--Section 1211 of the Elementary and Secondary
    Education Act of 1965 (20 U.S.C. 6369b) is amended--
                (1) in subsection (b), by striking ``subsection
            (a)'' and inserting ``subsections (a) and (b)'';
                (2) by redesignating subsection (b) as subsection
            (c); and
                (3) by inserting after subsection (a) the
            following:
        ``(b) Scientifically Based Research on Family Literacy.--
                ``(1) In general.--From amounts reserved under
            section 1202(b)(2), the National Institute for
            Literacy, in consultation with the Secretary, shall
            carry out research that--
                        ``(A) is scientifically based reading
                    research (as defined in section 2252); and
                        ``(B) determines--
                                ``(i) the most effective ways of
                            improving the literacy skills of adults
                            with reading difficulties; and
                                ``(ii) how family literacy services
                            can best provide parents with the
                            knowledge and skills they need to
                            support their children's literacy
                            development.
                ``(2) Use of expert entity.--The National Institute
            for Literacy, in consultation with the Secretary, shall
            carry out the research under paragraph (1) through an
            entity, including a Federal agency, that has expertise
            in carrying out longitudinal studies of the development
            of literacy skills in children and has developed
            effective interventions to help children with reading
            difficulties.''.
        (n) Indicators of Program Quality.--Not later than 30 days
    after the date of the enactment of this Act, the Secretary
    shall notify each State that receives funds under part B of
    title I of the Elementary and Secondary Education Act of 1965
    that to be eligible to receive fiscal year 2001 funds under
    part B, such State shall submit to the Secretary, not later
    than June 30, 2001, its indicators of program quality as
    described in section 1210 of the Elementary and Secondary
    Education Act of 1965. A State that fails to comply with this
    subsection shall be ineligible to receive funds under such part
    in subsequent years unless such State submits to the Secretary,
    not later than June 30 of the year in which funds are
    requested, its indicators of program quality as described in
    section 1210 of the Elementary and Secondary Education Act of
    1965.

    SEC. 1605. EDUCATION OF MIGRATORY CHILDREN.

        Section 1304(b) of the Elementary and Secondary Education
    Act of 1965 (20 U.S.C. 6394(b)) is amended--
                (1) in paragraph (5), by striking ``and'' at the
            end;
                (2) in paragraph (6), by striking the period at the
            end and inserting ``; and''; and
                (3) by adding at the end the following:
                ``(7) a description of how the State will encourage
            programs and projects assisted under this part to offer
            family literacy services if the program or project
            serves a substantial number of migratory children who
            have parents who do not have a high school diploma or
            its recognized equivalent or who have low levels of
            literacy.''.

    SEC. 1606. DEFINITIONS.

        (a) In General.--Section 14101 of the Elementary and
    Secondary Education Act of 1965 (20 U.S.C. 8801) is amended--
                (1) by redesignating paragraphs (15) through (29)
            as paragraphs (16) through (30), respectively; and
                (2) by inserting after paragraph (14) the
            following:
                ``(15) Family literacy services.--The term `family
            literacy services' means services provided to
            participants on a voluntary basis that are of
            sufficient intensity in terms of hours, and of
            sufficient duration, to make sustainable changes in a
            family, and that integrate all of the following
            activities:
                        ``(A) Interactive literacy activities
                    between parents and their children.
                        ``(B) Training for parents regarding how to
                    be the primary teacher for their children and
                    full partners in the education of their
                    children.
                        ``(C) Parent literacy training that leads
                    to economic self-sufficiency.
                        ``(D) An age-appropriate education to
                    prepare children for success in school and life
                    experiences.''.
        (b) Conforming Amendments.--
                (1) Even start family literacy programs.--Section
            1202(e) of the Elementary and Secondary Education Act
            of 1965 (20 U.S.C. 6362(e)) is amended--
                        (A) by striking paragraph (3); and
                        (B) by redesignating paragraphs (4) and (5)
                    as paragraphs (3) and (4), respectively.
                (2) Reading and literacy grants.--(A) Section 2252
            of the Elementary and Secondary Education Act of 1965
            (20 U.S.C. 6661a) is amended--
                        (i) by striking paragraph (2); and
                        (ii) by redesignating paragraphs (3)
                    through (5) as paragraphs (2) through (4),
                    respectively.
                (B) Section 2260 of the Elementary and Secondary
            Education Act of 1965 (20 U.S.C. 6661i) is amendmed--
                        (i) in subsection (a), by striking ``and
                    section 1202(c)'' each place it appears, and
                    (ii) in subsection (b)--
                                (I) in paragraph (1), by inserting
                            ``and'' after the semicolon;
                                (II) in paragraph (2), by striking
                            ``; and '' and inserting a period; and
                                (III) by striking paragraph (3).

    SEC. 1607. INDIAN EDUCATION.

        (a) Early Childhood Development Program.--Section 1143 of
    the Education Amendments of 1978 (25 U.S.C. 2023) is amended--
                (1) in subsection (b)(1), in the matter preceding
            subparagraph (A)--
                        (A) by striking ``(f)'' and inserting
                    ``(g)''; and
                        (B) by striking ``(e))'' and inserting
                    ``(f))'';
                (2) in subsection (d)(1)--
                        (A) by redesignating subparagraphs (D) and
                    (E) as subparagraphs (E) and (F), respectively;
                    and
                        (B) by inserting after subparagraph (C) the
                    following:
                        ``(D) family literacy services,'';
                (3) in subsection (e), by striking ``(f),'' and
            inserting ``(g),'';
                (4) by redesignating subsections (e) and (f) as
            subsections (f) and (g), respectively; and
                (5) by inserting after subsection (d) the
            following:
        ``(e) Family literacy programs operated under this section,
    and other family literacy programs operated by the Bureau of
    Indian Affairs, shall be coordinated with family literacy
    programs for American Indian children under part B of title I
    of the Elementary and Secondary Education Act of 1965 in order
    to avoid duplication and to encourage the dissemination of
    information on quality family literacy programs serving
    American Indians.''.
        (b) Definitions.--Section 1146 of the Education Amendments
    of 1978 (25 U.S.C. 2026) is amended--
                (1) by redesignating paragraphs (7) through (14) as
            paragraphs (8) through (15), respectively; and
                (2) by inserting after paragraph (6) the following:
                ``(7) the term `family literacy services' has the
            meaning given such term in section 14101 of the
            Elementary and Secondary Education Act of 1965 (20
            U.S.C. 8801);''.

                   TITLE XVII--CHILDREN'S INTERNET PROTECTION

    SEC. 1701. SHORT TITLE.

        This title may be cited as the ``Children's Internet
    Protection Act''.

    SEC. 1702. DISCLAIMERS.

        (a) Disclaimer Regarding Content.--Nothing in this title or
    the amendments made by this title shall be construed to
    prohibit a local educational agency, elementary or secondary
    school, or library from blocking access on the Internet on
    computers owned or operated by that agency, school, or library
    to any content other than content covered by this title or the
    amendments made by this title.
        (b) Disclaimer Regarding Privacy.--Nothing in this title or
    the amendments made by this title shall be construed to require
    the tracking of Internet use by any identifiable minor or adult
    user.

    SEC. 1703. STUDY OF TECHNOLOGY PROTECTION MEASURES.

        (a) In General.--Not later than 18 months after the date of
    the enactment of this Act, the National Telecommunications and
    Information Administration shall initiate a notice and comment
    proceeding for purposes of--
                (1) evaluating whether or not currently available
            technology protection measures, including commercial
            Internet blocking and filtering software, adequately
            addresses the needs of educational institutions;
                (2) making recommendations on how to foster the
            development of measures that meet such needs; and
                (3) evaluating the development and effectiveness of
            local Internet safety policies that are currently in
            operation after community input.
        (b) Definitions.--In this section:
                (1) Technology protection measure.--The term
            ``technology protection measure'' means a specific
            technology that blocks or filters Internet access to
            visual depictions that are--
                        (A) obscene, as that term is defined in
                    section 1460 of title 18, United States Code;
                        (B) child pornography, as that term is
                    defined in section 2256 of title 18, United
                    States Code; or
                        (C) harmful to minors.
                (2) Harmful to minors.--The term ``harmful to
            minors'' means any picture, image, graphic image file,
            or other visual depiction that--
                        (A) taken as a whole and with respect to
                    minors, appeals to a prurient interest in
                    nudity, sex, or excretion;
                        (B) depicts, describes, or represents, in a
                    patently offensive way with respect to what is
                    suitable for minors, an actual or simulated
                    sexual act or sexual contact, actual or
                    simulated normal or perverted sexual acts, or a
                    lewd exhibition of the genitals; and
                        (C) taken as a whole, lacks serious
                    literary, artistic, political, or scientific
                    value as to minors.
                (3) Sexual act; sexual contact.--The terms ``sexual
            act'' and ``sexual contact'' have the meanings given
            such terms in section 2246 of title 18, United States
            Code.

       Subtitle A--Federal Funding for Educational Institution Computers

    SEC. 1711. LIMITATION ON AVAILABILITY OF CERTAIN FUNDS FOR SCHOOLS.

        Title III of the Elementary and Secondary Education Act of
    1965 (20 U.S.C. 6801 et seq.) is amended by adding at the end
    the following:

       ``PART F--LIMITATION ON AVAILABILITY OF CERTAIN FUNDS FOR SCHOOLS

    ``SEC. 3601. LIMITATION ON AVAILABILITY OF CERTAIN FUNDS FOR SCHOOLS.

        ``(a) Internet Safety.--
                ``(1) In general.--No funds made available under
            this title to a local educational agency for an
            elementary or secondary school that does not receive
            services at discount rates under section 254(h)(5) of
            the Communications Act of 1934, as added by section
            1721 of Children's Internet Protection Act, may be used
            to purchase computers used to access the Internet, or
            to pay for direct costs associated with accessing the
            Internet, for such school unless the school, school
            board, local educational agency, or other authority
            with responsibility for administration of such school
            both--
                        ``(A)(i) has in place a policy of Internet
                    safety for minors that includes the operation
                    of a technology protection measure with respect
                    to any of its computers with Internet access
                    that protects against access through such
                    computers to visual depictions that are--
                                ``(I) obscene;
                                ``(II) child pornography; or
                                ``(III) harmful to minors; and
                        ``(ii) is enforcing the operation of such
                    technology protection measure during any use of
                    such computers by minors; and
                        ``(B)(i) has in place a policy of Internet
                    safety that includes the operation of a
                    technology protection measure with respect to
                    any of its computers with Internet access that
                    protects against access through such computers
                    to visual depictions that are--
                                ``(I) obscene; or
                                ``(II) child pornography; and
                        ``(ii) is enforcing the operation of such
                    technology protection measure during any use of
                    such computers.
                ``(2) Timing and applicability of implementation.--
                        ``(A) In general.--The local educational
                    agency with responsibility for a school covered
                    by paragraph (1) shall certify the compliance
                    of such school with the requirements of
                    paragraph (1) as part of the application
                    process for the next program funding year under
                    this Act following the effective date of this
                    section, and for each subsequent program
                    funding year thereafter.
                        ``(B) Process.--
                                ``(i) Schools with internet safety
                            policies and technology protection
                            measures in place.--A local educational
                            agency with responsibility for a school
                            covered by paragraph (1) that has in
                            place an Internet safety policy meeting
                            the requirements of paragraph (1) shall
                            certify its compliance with paragraph
                            (1) during each annual program
                            application cycle under this Act.
                                ``(ii) Schools without internet
                            safety policies and technology
                            protection measures in place.--A local
                            educational agency with responsibility
                            for a school covered by paragraph (1)
                            that does not have in place an Internet
                            safety policy meeting the requirements
                            of paragraph (1)--
                                        ``(I) for the first program
                                    year after the effective date
                                    of this section in which the
                                    local educational agency is
                                    applying for funds for such
                                    school under this Act, shall
                                    certify that it is undertaking
                                    such actions, including any
                                    necessary procurement
                                    procedures, to put in place an
                                    Internet safety policy that
                                    meets such requirements; and
                                        ``(II) for the second
                                    program year after the
                                    effective date of this section
                                    in which the local educational
                                    agency is applying for funds
                                    for such school under this Act,
                                    shall certify that such school
                                    is in compliance with such
                                    requirements.
                            Any school covered by paragraph (1) for
                            which the local educational agency
                            concerned is unable to certify
                            compliance with such requirements in
                            such second program year shall be
                            ineligible for all funding under this
                            title for such second program year and
                            all subsequent program years until such
                            time as such school comes into
                            compliance with such requirements.
                                ``(iii) Waivers.--Any school
                            subject to a certification under clause
                            (ii)(II) for which the local
                            educational agency concerned cannot
                            make the certification otherwise
                            required by that clause may seek a
                            waiver of that clause if State or local
                            procurement rules or regulations or
                            competitive bidding requirements
                            prevent the making of the certification
                            otherwise required by that clause. The
                            local educational agency concerned
                            shall notify the Secretary of the
                            applicability of that clause to the
                            school. Such notice shall certify that
                            the school will be brought into
                            compliance with the requirements in
                            paragraph (1) before the start of the
                            third program year after the effective
                            date of this section in which the
                            school is applying for funds under this
                            title.
                ``(3) Disabling during certain use.--An
            administrator, supervisor, or person authorized by the
            responsible authority under paragraph (1) may disable
            the technology protection measure concerned to enable
            access for bona fide research or other lawful purposes.
                ``(4) Noncompliance.--
                        ``(A) Use of general education provisions
                    act remedies.--Whenever the Secretary has
                    reason to believe that any recipient of funds
                    under this title is failing to comply
                    substantially with the requirements of this
                    subsection, the Secretary may--
                                ``(i) withhold further payments to
                            the recipient under this title,
                                ``(ii) issue a complaint to compel
                            compliance of the recipient through a
                            cease and desist order, or
                                ``(iii) enter into a compliance
                            agreement with a recipient to bring it
                            into compliance with such requirements,
                    in same manner as the Secretary is authorized
                    to take such actions under sections 455, 456,
                    and 457, respectively, of the General Education
                    Provisions Act (20 U.S.C. 1234d).
                        ``(B) Recovery of funds prohibited.--The
                    actions authorized by subparagraph (A) are the
                    exclusive remedies available with respect to
                    the failure of a school to comply substantially
                    with a provision of this subsection, and the
                    Secretary shall not seek a recovery of funds
                    from the recipient for such failure.
                        ``(C) Recommencement of payments.--Whenever
                    the Secretary determines (whether by
                    certification or other appropriate evidence)
                    that a recipient of funds who is subject to the
                    withholding of payments under subparagraph
                    (A)(i) has cured the failure providing the
                    basis for the withholding of payments, the
                    Secretary shall cease the withholding of
                    payments to the recipient under that
                    subparagraph.
                ``(5) Definitions.--In this section:
                        ``(A) Computer.--The term `computer'
                    includes any hardware, software, or other
                    technology attached or connected to, installed
                    in, or otherwise used in connection with a
                    computer.
                        ``(B) Access to internet.--A computer shall
                    be considered to have access to the Internet if
                    such computer is equipped with a modem or is
                    connected to a computer network which has
                    access to the Internet.
                        ``(C) Acquisition or operation.--A
                    elementary or secondary school shall be
                    considered to have received funds under this
                    title for the acquisition or operation of any
                    computer if such funds are used in any manner,
                    directly or indirectly--
                                ``(i) to purchase, lease, or
                            otherwise acquire or obtain the use of
                            such computer; or
                                ``(ii) to obtain services,
                            supplies, software, or other actions or
                            materials to support, or in connection
                            with, the operation of such computer.
                        ``(D) Minor.--The term `minor' means an
                    individual who has not attained the age of 17.
                        ``(E) Child pornography.--The term `child
                    pornography' has the meaning given such term in
                    section 2256 of title 18, United States Code.
                        ``(F) Harmful to minors.--The term `harmful
                    to minors' means any picture, image, graphic
                    image file, or other visual depiction that--
                                ``(i) taken as a whole and with
                            respect to minors, appeals to a
                            prurient interest in nudity, sex, or
                            excretion;
                                ``(ii) depicts, describes, or
                            represents, in a patently offensive way
                            with respect to what is suitable for
                            minors, an actual or simulated sexual
                            act or sexual contact, actual or
                            simulated normal or perverted sexual
                            acts, or a lewd exhibition of the
                            genitals; and
                                ``(iii) taken as a whole, lacks
                            serious literary, artistic, political,
                            or scientific value as to minors.
                        ``(G) Obscene.--The term `obscene' has the
                    meaning given such term in section 1460 of
                    title 18, United States Code.
                        ``(H) Sexual act; sexual contact.--The
                    terms `sexual act' and `sexual contact' have
                    the meanings given such terms in section 2246
                    of title 18, United States Code.
        ``(b) Effective Date.--This section shall take effect 120
    days after the date of the enactment of the Children's Internet
    Protection Act.
        ``(c) Separability.--If any provision of this section is
    held invalid, the remainder of this section shall not be
    affected thereby.''.

    SEC. 1712. LIMITATION ON AVAILABILITY OF CERTAIN FUNDS FOR LIBRARIES.

        (a) Amendment.--Section 224 of the Museum and Library
    Services Act (20 U.S.C. 9134(b)) is amended--
                (1) in subsection (b)--
                        (A) by redesignating paragraph (6) as
                    paragraph (7); and
                        (B) by inserting after paragraph (5) the
                    following new paragraph:
                ``(6) provide assurances that the State will comply
            with subsection (f); and''; and
                (2) by adding at the end the following new
            subsection:
        ``(f) Internet Safety.--
                ``(1) In general.--No funds made available under
            this Act for a library described in section 213(2)(A)
            or (B) that does not receive services at discount rates
            under section 254(h)(6) of the Communications Act of
            1934, as added by section 1721 of this Children's
            Internet Protection Act, may be used to purchase
            computers used to access the Internet, or to pay for
            direct costs associated with accessing the Internet,
            for such library unless--
                        ``(A) such library--
                                ``(i) has in place a policy of
                            Internet safety for minors that
                            includes the operation of a technology
                            protection measure with respect to any
                            of its computers with Internet access
                            that protects against access through
                            such computers to visual depictions
                            that are--
                                        ``(I) obscene;
                                        ``(II) child pornography;
                                    or
                                        ``(III) harmful to minors;
                                    and
                                ``(ii) is enforcing the operation
                            of such technology protection measure
                            during any use of such computers by
                            minors; and
                        ``(B) such library--
                                ``(i) has in place a policy of
                            Internet safety that includes the
                            operation of a technology protection
                            measure with respect to any of its
                            computers with Internet access that
                            protects against access through such
                            computers to visual depictions that
                            are--
                                        ``(I) obscene; or
                                        ``(II) child pornography;
                                    and
                                ``(ii) is enforcing the operation
                            of such technology protection measure
                            during any use of such computers.
                ``(2) Access to other materials.--Nothing in this
            subsection shall be construed to prohibit a library
            from limiting Internet access to or otherwise
            protecting against materials other than those referred
            to in subclauses (I), (II), and (III) of paragraph
            (1)(A)(i).
                ``(3) Disabling during certain use.--An
            administrator, supervisor, or other authority may
            disable a technology protection measure under paragraph
            (1) to enable access for bona fide research or other
            lawful purposes.
                ``(4) Timing and applicability of implementation.--
                        ``(A) In general.--A library covered by
                    paragraph (1) shall certify the compliance of
                    such library with the requirements of paragraph
                    (1) as part of the application process for the
                    next program funding year under this Act
                    following the effective date of this
                    subsection, and for each subsequent program
                    funding year thereafter.
                        ``(B) Process.--
                                ``(i) Libraries with internet
                            safety policies and technology
                            protection measures in place.--A
                            library covered by paragraph (1) that
                            has in place an Internet safety policy
                            meeting the requirements of paragraph
                            (1) shall certify its compliance with
                            paragraph (1) during each annual
                            program application cycle under this
                            Act.
                                ``(ii) Libraries without internet
                            safety policies and technology
                            protection measures in place.--A
                            library covered by paragraph (1) that
                            does not have in place an Internet
                            safety policy meeting the requirements
                            of paragraph (1)--
                                        ``(I) for the first program
                                    year after the effective date
                                    of this subsection in which the
                                    library applies for funds under
                                    this Act, shall certify that it
                                    is undertaking such actions,
                                    including any necessary
                                    procurement procedures, to put
                                    in place an Internet safety
                                    policy that meets such
                                    requirements; and
                                        ``(II) for the second
                                    program year after the
                                    effective date of this
                                    subsection in which the library
                                    applies for funds under this
                                    Act, shall certify that such
                                    library is in compliance with
                                    such requirements.
                            Any library covered by paragraph (1)
                            that is unable to certify compliance
                            with such requirements in such second
                            program year shall be ineligible for
                            all funding under this Act for such
                            second program year and all subsequent
                            program years until such time as such
                            library comes into compliance with such
                            requirements.
                                ``(iii) Waivers.--Any library
                            subject to a certification under clause
                            (ii)(II) that cannot make the
                            certification otherwise required by
                            that clause may seek a waiver of that
                            clause if State or local procurement
                            rules or regulations or competitive
                            bidding requirements prevent the making
                            of the certification otherwise required
                            by that clause. The library shall
                            notify the Director of the Institute of
                            Museum and Library Services of the
                            applicability of that clause to the
                            library. Such notice shall certify that
                            the library will comply with the
                            requirements in paragraph (1) before
                            the start of the third program year
                            after the effective date of this
                            subsection for which the library is
                            applying for funds under this Act.
                ``(5) Noncompliance.--
                        ``(A) Use of general education provisions
                    act remedies.--Whenever the Director of the
                    Institute of Museum and Library Services has
                    reason to believe that any recipient of funds
                    this Act is failing to comply substantially
                    with the requirements of this subsection, the
                    Director may--
                                ``(i) withhold further payments to
                            the recipient under this Act,
                                ``(ii) issue a complaint to compel
                            compliance of the recipient through a
                            cease and desist order, or
                                ``(iii) enter into a compliance
                            agreement with a recipient to bring it
                            into compliance with such requirements.
                        ``(B) Recovery of funds prohibited.--The
                    actions authorized by subparagraph (A) are the
                    exclusive remedies available with respect to
                    the failure of a library to comply
                    substantially with a provision of this
                    subsection, and the Director shall not seek a
                    recovery of funds from the recipient for such
                    failure.
                        ``(C) Recommencement of payments.--Whenever
                    the Director determines (whether by
                    certification or other appropriate evidence)
                    that a recipient of funds who is subject to the
                    withholding of payments under subparagraph
                    (A)(i) has cured the failure providing the
                    basis for the withholding of payments, the
                    Director shall cease the withholding of
                    payments to the recipient under that
                    subparagraph.
                ``(6) Separability.--If any provision of this
            subsection is held invalid, the remainder of this
            subsection shall not be affected thereby.
                ``(7) Definitions.--In this section:
                        ``(A) Child pornography.--The term `child
                    pornography' has the meaning given such term in
                    section 2256 of title 18, United States Code.
                        ``(B) Harmful to minors.--The term `harmful
                    to minors' means any picture, image, graphic
                    image file, or other visual depiction that--
                                ``(i) taken as a whole and with
                            respect to minors, appeals to a
                            prurient interest in nudity, sex, or
                            excretion;
                                ``(ii) depicts, describes, or
                            represents, in a patently offensive way
                            with respect to what is suitable for
                            minors, an actual or simulated sexual
                            act or sexual contact, actual or
                            simulated normal or perverted sexual
                            acts, or a lewd exhibition of the
                            genitals; and
                                ``(iii) taken as a whole, lacks
                            serious literary, artistic, political,
                            or scientific value as to minors.
                        ``(C) Minor.--The term `minor' means an
                    individual who has not attained the age of 17.
                        ``(D) Obscene.--The term `obscene' has the
                    meaning given such term in section 1460 of
                    title 18, United States Code.
                        ``(E) Sexual act; sexual contact.--The
                    terms `sexual act' and `sexual contact' have
                    the meanings given such terms in section 2246
                    of title 18, United States Code.''.
        (b) Effective Date.--The amendment made by this section
    shall take effect 120 days after the date of the enactment of
    this Act.

                    Subtitle B--Universal Service Discounts

    SEC. 1721. REQUIREMENT FOR SCHOOLS AND LIBRARIES TO ENFORCE INTERNET
                        SAFETY POLICIES WITH TECHNOLOGY PROTECTION MEASURES
                        FOR COMPUTERS WITH INTERNET ACCESS AS CONDITION OF
                        UNIVERSAL SERVICE DISCOUNTS.

        (a) Schools.--Section 254(h) of the Communications Act of
    1934 (47 U.S.C. 254(h)) is amended--
                (1) by redesignating paragraph (5) as paragraph
            (7); and
                (2) by inserting after paragraph (4) the following
            new paragraph (5):
                ``(5) Requirements for certain schools with
            computers having internet access.--
                        ``(A) Internet safety.--
                                ``(i) In general.--Except as
                            provided in clause (ii), an elementary
                            or secondary school having computers
                            with Internet access may not receive
                            services at discount rates under
                            paragraph (1)(B) unless the school,
                            school board, local educational agency,
                            or other authority with responsibility
                            for administration of the school--
                                        ``(I) submits to the
                                    Commission the certifications
                                    described in subparagraphs (B)
                                    and (C);
                                        ``(II) submits to the
                                    Commission a certification that
                                    an Internet safety policy has
                                    been adopted and implemented
                                    for the school under subsection
                                    (l); and
                                        ``(III) ensures the use of
                                    such computers in accordance
                                    with the certifications.
                                ``(ii) Applicability.--The
                            prohibition in clause (i) shall not
                            apply with respect to a school that
                            receives services at discount rates
                            under paragraph (1)(B) only for
                            purposes other than the provision of
                            Internet access, Internet service, or
                            internal connections.
                                ``(iii) Public notice; hearing.--An
                            elementary or secondary school
                            described in clause (i), or the school
                            board, local educational agency, or
                            other authority with responsibility for
                            administration of the school, shall
                            provide reasonable public notice and
                            hold at least 1 public hearing or
                            meeting to address the proposed
                            Internet safety policy. In the case of
                            an elementary or secondary school other
                            than an elementary or secondary school
                            as defined in section 14101 of the
                            Elementary and Secondary Education Act
                            of 1965 (20 U.S.C. 8801), the notice
                            and hearing required by this clause may
                            be limited to those members of the
                            public with a relationship to the
                            school.
                        ``(B) Certification with respect to
                    minors.--A certification under this
                    subparagraph is a certification that the
                    school, school board, local educational agency,
                    or other authority with responsibility for
                    administration of the school--
                                ``(i) is enforcing a policy of
                            Internet safety for minors that
                            includes monitoring the online
                            activities of minors and the operation
                            of a technology protection measure with
                            respect to any of its computers with
                            Internet access that protects against
                            access through such computers to visual
                            depictions that are--
                                        ``(I) obscene;
                                        ``(II) child pornography;
                                    or
                                        ``(III) harmful to minors;
                                    and
                                ``(ii) is enforcing the operation
                            of such technology protection measure
                            during any use of such computers by
                            minors.
                        ``(C) Certification with respect to
                    adults.--A certification under this paragraph
                    is a certification that the school, school
                    board, local educational agency, or other
                    authority with responsibility for
                    administration of the school--
                                ``(i) is enforcing a policy of
                            Internet safety that includes the
                            operation of a technology protection
                            measure with respect to any of its
                            computers with Internet access that
                            protects against access through such
                            computers to visual depictions that
                            are--
                                        ``(I) obscene; or
                                        ``(II) child pornography;
                                    and
                                ``(ii) is enforcing the operation
                            of such technology protection measure
                            during any use of such computers.
                        ``(D) Disabling during adult use.--An
                    administrator, supervisor, or other person
                    authorized by the certifying authority under
                    subparagraph (A)(i) may disable the technology
                    protection measure concerned, during use by an
                    adult, to enable access for bona fide research
                    or other lawful purpose.
                        ``(E) Timing of implementation.--
                                ``(i) In general.--Subject to
                            clause (ii) in the case of any school
                            covered by this paragraph as of the
                            effective date of this paragraph under
                            section 1721(h) of the Children's
                            Internet Protection Act, the
                            certification under subparagraphs (B)
                            and (C) shall be made--
                                        ``(I) with respect to the
                                    first program funding year
                                    under this subsection following
                                    such effective date, not later
                                    than 120 days after the
                                    beginning of such program
                                    funding year; and
                                        ``(II) with respect to any
                                    subsequent program funding
                                    year, as part of the
                                    application process for such
                                    program funding year.
                                ``(ii) Process.--
                                        ``(I) Schools with internet
                                    safety policy and technology
                                    protection measures in place.--
                                    A school covered by clause (i)
                                    that has in place an Internet
                                    safety policy and technology
                                    protection measures meeting the
                                    requirements necessary for
                                    certification under
                                    subparagraphs (B) and (C) shall
                                    certify its compliance with
                                    subparagraphs (B) and (C)
                                    during each annual program
                                    application cycle under this
                                    subsection, except that with
                                    respect to the first program
                                    funding year after the
                                    effective date of this
                                    paragraph under section 1721(h)
                                    of the Children's Internet
                                    Protection Act, the
                                    certifications shall be made
                                    not later than 120 days after
                                    the beginning of such first
                                    program funding year.
                                        ``(II) Schools without
                                    internet safety policy and
                                    technology protection measures
                                    in place.--A school covered by
                                    clause (i) that does not have
                                    in place an Internet safety
                                    policy and technology
                                    protection measures meeting the
                                    requirements necessary for
                                    certification under
                                    subparagraphs (B) and (C)--
                                                ``(aa) for the
                                            first program year
                                            after the effective
                                            date of this subsection
                                            in which it is applying
                                            for funds under this
                                            subsection, shall
                                            certify that it is
                                            undertaking such
                                            actions, including any
                                            necessary procurement
                                            procedures, to put in
                                            place an Internet
                                            safety policy and
                                            technology protection
                                            measures meeting the
                                            requirements necessary
                                            for certification under
                                            subparagraphs (B) and
                                            (C); and
                                                ``(bb) for the
                                            second program year
                                            after the effective
                                            date of this subsection
                                            in which it is applying
                                            for funds under this
                                            subsection, shall
                                            certify that it is in
                                            compliance with
                                            subparagraphs (B) and
                                            (C).
                                    Any school that is unable to
                                    certify compliance with such
                                    requirements in such second
                                    program year shall be
                                    ineligible for services at
                                    discount rates or funding in
                                    lieu of services at such rates
                                    under this subsection for such
                                    second year and all subsequent
                                    program years under this
                                    subsection, until such time as
                                    such school comes into
                                    compliance with this paragraph.
                                        ``(III) Waivers.--Any
                                    school subject to subclause
                                    (II) that cannot come into
                                    compliance with subparagraphs
                                    (B) and (C) in such second year
                                    program may seek a waiver of
                                    subclause (II)(bb) if State or
                                    local procurement rules or
                                    regulations or competitive
                                    bidding requirements prevent
                                    the making of the certification
                                    otherwise required by such
                                    subclause. A school, school
                                    board, local educational
                                    agency, or other authority with
                                    responsibility for
                                    administration of the school
                                    shall notify the Commission of
                                    the applicability of such
                                    subclause to the school. Such
                                    notice shall certify that the
                                    school in question will be
                                    brought into compliance before
                                    the start of the third program
                                    year after the effective date
                                    of this subsection in which the
                                    school is applying for funds
                                    under this subsection.
                        ``(F) Noncompliance.--
                                ``(i) Failure to submit
                            certification.--Any school that
                            knowingly fails to comply with the
                            application guidelines regarding the
                            annual submission of certification
                            required by this paragraph shall not be
                            eligible for services at discount rates
                            or funding in lieu of services at such
                            rates under this subsection.
                                ``(ii) Failure to comply with
                            certification.--Any school that
                            knowingly fails to ensure the use of
                            its computers in accordance with a
                            certification under subparagraphs (B)
                            and (C) shall reimburse any funds and
                            discounts received under this
                            subsection for the period covered by
                            such certification.
                                ``(iii) Remedy of noncompliance.--
                                        ``(I) Failure to submit.--A
                                    school that has failed to
                                    submit a certification under
                                    clause (i) may remedy the
                                    failure by submitting the
                                    certification to which the
                                    failure relates. Upon submittal
                                    of such certification, the
                                    school shall be eligible for
                                    services at discount rates
                                    under this subsection.
                                        ``(II) Failure to comply.--
                                    A school that has failed to
                                    comply with a certification as
                                    described in clause (ii) may
                                    remedy the failure by ensuring
                                    the use of its computers in
                                    accordance with such
                                    certification. Upon submittal
                                    to the Commission of a
                                    certification or other
                                    appropriate evidence of such
                                    remedy, the school shall be
                                    eligible for services at
                                    discount rates under this
                                    subsection.''.
        (b) Libraries.--Such section 254(h) is further amended by
    inserting after paragraph (5), as amended by subsection (a) of
    this section, the following new paragraph:
                ``(6) Requirements for certain libraries with
            computers having internet access.--
                        ``(A) Internet safety.--
                                ``(i) In general.--Except as
                            provided in clause (ii), a library
                            having one or more computers with
                            Internet access may not receive
                            services at discount rates under
                            paragraph (1)(B) unless the library--
                                        ``(I) submits to the
                                    Commission the certifications
                                    described in subparagraphs (B)
                                    and (C); and
                                        ``(II) submits to the
                                    Commission a certification that
                                    an Internet safety policy has
                                    been adopted and implemented
                                    for the library under
                                    subsection (l); and
                                        ``(III) ensures the use of
                                    such computers in accordance
                                    with the certifications.
                                ``(ii) Applicability.--The
                            prohibition in clause (i) shall not
                            apply with respect to a library that
                            receives services at discount rates
                            under paragraph (1)(B) only for
                            purposes other than the provision of
                            Internet access, Internet service, or
                            internal connections.
                                ``(iii) Public notice; hearing.--A
                            library described in clause (i) shall
                            provide reasonable public notice and
                            hold at least 1 public hearing or
                            meeting to address the proposed
                            Internet safety policy.
                        ``(B) Certification with respect to
                    minors.--A certification under this
                    subparagraph is a certification that the
                    library--
                                ``(i) is enforcing a policy of
                            Internet safety that includes the
                            operation of a technology protection
                            measure with respect to any of its
                            computers with Internet access that
                            protects against access through such
                            computers to visual depictions that
                            are--
                                        ``(I) obscene;
                                        ``(II) child pornography;
                                    or
                                        ``(III) harmful to minors;
                                    and
                                ``(ii) is enforcing the operation
                            of such technology protection measure
                            during any use of such computers by
                            minors.
                        ``(C) Certification with respect to
                    adults.--A certification under this paragraph
                    is a certification that the library--
                                ``(i) is enforcing a policy of
                            Internet safety that includes the
                            operation of a technology protection
                            measure with respect to any of its
                            computers with Internet access that
                            protects against access through such
                            computers to visual depictions that
                            are--
                                        ``(I) obscene; or
                                        ``(II) child pornography;
                                    and
                                ``(ii) is enforcing the operation
                            of such technology protection measure
                            during any use of such computers.
                        ``(D) Disabling during adult use.--An
                    administrator, supervisor, or other person
                    authorized by the certifying authority under
                    subparagraph (A)(i) may disable the technology
                    protection measure concerned, during use by an
                    adult, to enable access for bona fide research
                    or other lawful purpose.
                        ``(E) Timing of implementation.--
                                ``(i) In general.--Subject to
                            clause (ii) in the case of any library
                            covered by this paragraph as of the
                            effective date of this paragraph under
                            section 1721(h) of the Children's
                            Internet Protection Act, the
                            certification under subparagraphs (B)
                            and (C) shall be made--
                                        ``(I) with respect to the
                                    first program funding year
                                    under this subsection following
                                    such effective date, not later
                                    than 120 days after the
                                    beginning of such program
                                    funding year; and
                                        ``(II) with respect to any
                                    subsequent program funding
                                    year, as part of the
                                    application process for such
                                    program funding year.
                                ``(ii) Process.--
                                        ``(I) Libraries with
                                    internet safety policy and
                                    technology protection measures
                                    in place.--A library covered by
                                    clause (i) that has in place an
                                    Internet safety policy and
                                    technology protection measures
                                    meeting the requirements
                                    necessary for certification
                                    under subparagraphs (B) and (C)
                                    shall certify its compliance
                                    with subparagraphs (B) and (C)
                                    during each annual program
                                    application cycle under this
                                    subsection, except that with
                                    respect to the first program
                                    funding year after the
                                    effective date of this
                                    paragraph under section 1721(h)
                                    of the Children's Internet
                                    Protection Act, the
                                    certifications shall be made
                                    not later than 120 days after
                                    the beginning of such first
                                    program funding year.
                                        ``(II) Libraries without
                                    internet safety policy and
                                    technology protection measures
                                    in place.--A library covered by
                                    clause (i) that does not have
                                    in place an Internet safety
                                    policy and technology
                                    protection measures meeting the
                                    requirements necessary for
                                    certification under
                                    subparagraphs (B) and (C)--
                                                ``(aa) for the
                                            first program year
                                            after the effective
                                            date of this subsection
                                            in which it is applying
                                            for funds under this
                                            subsection, shall
                                            certify that it is
                                            undertaking such
                                            actions, including any
                                            necessary procurement
                                            procedures, to put in
                                            place an Internet
                                            safety policy and
                                            technology protection
                                            measures meeting the
                                            requirements necessary
                                            for certification under
                                            subparagraphs (B) and
                                            (C); and
                                                ``(bb) for the
                                            second program year
                                            after the effective
                                            date of this subsection
                                            in which it is applying
                                            for funds under this
                                            subsection, shall
                                            certify that it is in
                                            compliance with
                                            subparagraphs (B) and
                                            (C).
                                    Any library that is unable to
                                    certify compliance with such
                                    requirements in such second
                                    program year shall be
                                    ineligible for services at
                                    discount rates or funding in
                                    lieu of services at such rates
                                    under this subsection for such
                                    second year and all subsequent
                                    program years under this
                                    subsection, until such time as
                                    such library comes into
                                    compliance with this paragraph.
                                        ``(III) Waivers.--Any
                                    library subject to subclause
                                    (II) that cannot come into
                                    compliance with subparagraphs
                                    (B) and (C) in such second year
                                    may seek a waiver of subclause
                                    (II)(bb) if State or local
                                    procurement rules or
                                    regulations or competitive
                                    bidding requirements prevent
                                    the making of the certification
                                    otherwise required by such
                                    subclause. A library, library
                                    board, or other authority with
                                    responsibility for
                                    administration of the library
                                    shall notify the Commission of
                                    the applicability of such
                                    subclause to the library. Such
                                    notice shall certify that the
                                    library in question will be
                                    brought into compliance before
                                    the start of the third program
                                    year after the effective date
                                    of this subsection in which the
                                    library is applying for funds
                                    under this subsection.
                        ``(F) Noncompliance.--
                                ``(i) Failure to submit
                            certification.--Any library that
                            knowingly fails to comply with the
                            application guidelines regarding the
                            annual submission of certification
                            required by this paragraph shall not be
                            eligible for services at discount rates
                            or funding in lieu of services at such
                            rates under this subsection.
                                ``(ii) Failure to comply with
                            certification.--Any library that
                            knowingly fails to ensure the use of
                            its computers in accordance with a
                            certification under subparagraphs (B)
                            and (C) shall reimburse all funds and
                            discounts received under this
                            subsection for the period covered by
                            such certification.
                                ``(iii) Remedy of noncompliance.--
                                        ``(I) Failure to submit.--A
                                    library that has failed to
                                    submit a certification under
                                    clause (i) may remedy the
                                    failure by submitting the
                                    certification to which the
                                    failure relates. Upon submittal
                                    of such certification, the
                                    library shall be eligible for
                                    services at discount rates
                                    under this subsection.
                                        ``(II) Failure to comply.--
                                    A library that has failed to
                                    comply with a certification as
                                    described in clause (ii) may
                                    remedy the failure by ensuring
                                    the use of its computers in
                                    accordance with such
                                    certification. Upon submittal
                                    to the Commission of a
                                    certification or other
                                    appropriate evidence of such
                                    remedy, the library shall be
                                    eligible for services at
                                    discount rates under this
                                    subsection.''.
        (c) Definitions.--Paragraph (7) of such section, as
    redesignated by subsection (a)(1) of this section, is amended
    by adding at the end the following:
                        ``(D) Minor.--The term `minor' means any
                    individual who has not attained the age of 17
                    years.
                        ``(E) Obscene.--The term `obscene' has the
                    meaning given such term in section 1460 of
                    title 18, United States Code.
                        ``(F) Child pornography.--The term `child
                    pornography' has the meaning given such term in
                    section 2256 of title 18, United States Code.
                        ``(G) Harmful to minors.--The term `harmful
                    to minors' means any picture, image, graphic
                    image file, or other visual depiction that--
                                ``(i) taken as a whole and with
                            respect to minors, appeals to a
                            prurient interest in nudity, sex, or
                            excretion;
                                ``(ii) depicts, describes, or
                            represents, in a patently offensive way
                            with respect to what is suitable for
                            minors, an actual or simulated sexual
                            act or sexual contact, actual or
                            simulated normal or perverted sexual
                            acts, or a lewd exhibition of the
                            genitals; and
                                ``(iii) taken as a whole, lacks
                            serious literary, artistic, political,
                            or scientific value as to minors.
                        ``(H) Sexual act; sexual contact.--The
                    terms `sexual act' and `sexual contact' have
                    the meanings given such terms in section 2246
                    of title 18, United States Code.
                        ``(I) Technology protection measure.--The
                    term `technology protection measure' means a
                    specific technology that blocks or filters
                    Internet access to the material covered by a
                    certification under paragraph (5) or (6) to
                    which such certification relates.''.
        (d) Conforming Amendment.--Paragraph (4) of such section is
    amended by striking ``paragraph (5)(A)'' and inserting
    ``paragraph (7)(A)''.
        (e) Separability.--If any provision of paragraph (5) or (6)
    of section 254(h) of the Communications Act of 1934, as amended
    by this section, or the application thereof to any person or
    circumstance is held invalid, the remainder of such paragraph
    and the application of such paragraph to other persons or
    circumstances shall not be affected thereby.
        (f) Regulations.--
                (1) Requirement.--The Federal Communications
            Commission shall prescribe regulations for purposes of
            administering the provisions of paragraphs (5) and (6)
            of section 254(h) of the Communications Act of 1934, as
            amended by this section.
                (2) Deadline.--Notwithstanding any other provision
            of law, the Commission shall prescribe regulations
            under paragraph (1) so as to ensure that such
            regulations take effect 120 days after the date of the
            enactment of this Act.
        (g) Availability of Certain Funds for Acquisition of
    Technology Protection Measures.
                (1) In general.--Notwithstanding any other
            provision of law, funds available under section 3134 or
            part A of title VI of the Elementary and Secondary
            Education Act of 1965, or under section 231 of the
            Library Services and Technology Act, may be used for
            the purchase or acquisition of technology protection
            measures that are necessary to meet the requirements of
            this title and the amendments made by this title. No
            other sources of funds for the purchase or acquisition
            of such measures are authorized by this title, or the
            amendments made by this title.
                (2) Technology protection measure defined.--In this
            section, the term ``technology protection measure'' has
            the meaning given that term in section 1703.
        (h) Effective Date.--The amendments made by this section
    shall take effect 120 days after the date of the enactment of
    this Act.

            Subtitle C--Neighborhood Children's Internet Protection

    SEC. 1731. SHORT TITLE.

        This subtitle may be cited as the ``Neighborhood Children's
    Internet Protection Act''.

    SEC. 1732. INTERNET SAFETY POLICY REQUIRED.

        Section 254 of the Communications Act of 1934 (47 U.S.C.
    254) is amended by adding at the end the following:
        ``(l) Internet Safety Policy Requirement for Schools and
    Libraries.--
                ``(1) In general.--In carrying out its
            responsibilities under subsection (h), each school or
            library to which subsection (h) applies shall--
                        ``(A) adopt and implement an Internet
                    safety policy that addresses--
                                ``(i) access by minors to
                            inappropriate matter on the Internet
                            and World Wide Web;
                                ``(ii) the safety and security of
                            minors when using electronic mail, chat
                            rooms, and other forms of direct
                            electronic communications;
                                ``(iii) unauthorized access,
                            including so-called `hacking', and
                            other unlawful activities by minors
                            online;
                                ``(iv) unauthorized disclosure,
                            use, and dissemination of personal
                            identification information regarding
                            minors; and
                                ``(v) measures designed to restrict
                            minors' access to materials harmful to
                            minors; and
                        ``(B) provide reasonable public notice and
                    hold at least one public hearing or meeting to
                    address the proposed Internet safety policy.
                ``(2) Local determination of content.--A
            determination regarding what matter is inappropriate
            for minors shall be made by the school board, local
            educational agency, library, or other authority
            responsible for making the determination. No agency or
            instrumentality of the United States Government may--
                        ``(A) establish criteria for making such
                    determination;
                        ``(B) review the determination made by the
                    certifying school, school board, local
                    educational agency, library, or other
                    authority; or
                        ``(C) consider the criteria employed by the
                    certifying school, school board, local
                    educational agency, library, or other authority
                    in the administration of subsection (h)(1)(B).
                ``(3) Availability for review.--Each Internet
            safety policy adopted under this subsection shall be
            made available to the Commission, upon request of the
            Commission, by the school, school board, local
            educational agency, library, or other authority
            responsible for adopting such Internet safety policy
            for purposes of the review of such Internet safety
            policy by the Commission.
                ``(4) Effective date.--This subsection shall apply
            with respect to schools and libraries on or after the
            date that is 120 days after the date of the enactment
            of the Children's Internet Protection Act.''.

    SEC. 1733. IMPLEMENTING REGULATIONS.

        Not later than 120 days after the date of enactment of this
    Act, the Federal Communications Commission shall prescribe
    regulations for purposes of section 254(l) of the
    Communications Act of 1934, as added by section 1732 of this
    Act.

                          Subtitle D--Expedited Review

    SEC. 1741. EXPEDITED REVIEW.

        (a) Three-Judge District Court Hearing.--Notwithstanding
    any other provision of law, any civil action challenging the
    constitutionality, on its face, of this title or any amendment
    made by this title, or any provision thereof, shall be heard by
    a district court of 3 judges convened pursuant to the
    provisions of section 2284 of title 28, United States Code.
        (b) Appellate Review.--Notwithstanding any other provision
    of law, an interlocutory or final judgment, decree, or order of
    the court of 3 judges in an action under subsection (a) holding
    this title or an amendment made by this title, or any provision
    thereof, unconstitutional shall be reviewable as a matter of
    right by direct appeal to the Supreme Court. Any such appeal
    shall be filed not more than 20 days after entry of such
    judgment, decree, or order.
          This Act may be cited as the ``Miscellaneous
    Appropriations Act, 2001''.

                          MISCELLANEOUS APPROPRIATIONS

          Following is explanatory language on H.R. 5666, as
    introduced on December 15, 2000.
          The conferees on H.R. 4577 agree with the matter included
    in H.R. 5666 and enacted in this conference report by reference
    and the following description of it.

                                   DIVISION A

                                   CHAPTER 1

                        General Provisions--This Chapter

          The conference agreement includes language which:
    provides that not more than $100,000 shall be available for
    guarantees of private sector rural electrification and
    telecommunications loans; clarifies that a housing
    demonstration program is to be carried out in Mississippi and
    Alaska; clarifies that the Initiative for Future Agriculture
    and Food Systems shall be used to make grants only to colleges,
    universities, or research foundations maintained by a college
    or university; makes a technical correction to the Rural
    Community Advancement Program to specify that funds may be used
    in counties which have received an emergency designation after
    January 1, 2000; provides certain transfers under the livestock
    assistance program; clarifies eligibility for quality losses;
    clarifies that Emergency Conservation Program funds previously
    appropriated for the Cerro Grande fire can be made available
    for drought benefits; clarifies a provision regarding payments
    to producers that suffered losses because of the insolvency of
    an agriculture cooperative in the State of California; provides
    that Burley, Flue-cured, and Cigar Binder Type 54-55 tobacco
    will be treated identically for loan forfeiture purposes; and
    establishes an effective date for a provision of the
    Agricultural Risk Protection Act of 2000 regarding limitations
    on Burley tobacco quota adjustments. The effective date of
    these provisions is the date of enactment of the Agriculture,
    Rural Development, Food and Drug Administration, and Related
    Agencies Appropriations Act, 2001.
          The conference agreement includes a section maintaining
    the eligibility of certain rural areas for U.S. Department of
    Agriculture rural housing programs.
          The conference agreement includes a section that
    authorizes a study on the feasibility of including ethanol,
    biodiesel, and other bio-based fuels as part of the Strategic
    Petroleum Reserve.
          The conference agreement includes a section that makes
    the City of Wilson, NC, eligible for certain U.S. Department of
    Agriculture rural development programs.
          The conference agreement includes a section that provides
    $26,000,000 for the Environmental Quality Incentives Program.
          The conference agreement includes a section regarding the
    operation of the ongoing bovine tuberculosis eradication
    program. The intent of the conferees is that funding for this
    program, which is financed through the Commodity Credit
    Corporation, shall provide a total of not less than
    $60,259,000.
          The conferees expect that, in developing any consumer
    guidance regarding mercury exposure from seafood consumption,
    the Department of Health and Human Services will rely upon the
    results of more than one relevant study. The Secretary is
    directed to submit a report to the Committees on Appropriations
    by February 28, 2001, on any actions regarding a consumer
    advisory on this subject.
          The conferees urge USDA's Animal and Plant Health
    Inspection Service (APHIS) to uphold approved sanitary and
    phytosanitary measures in relation to shipping and cargo
    materials returning to the United States as a result of trade
    with Cuba. The conferees urge APHIS to exercise vigilance in
    the adoption of internal measures to insure that returning
    containers and shipping materials do not present sanitary or
    phytosanitary risks to American agriculture or the environment,
    and to explore the formation of a bilateral cooperative
    agreement with Cuba to provide for pre-departure inspections of
    containers leaving Cuba. The conferees also encourage APHIS to
    work in cooperation with the Departments of Agriculture of the
    states which will serve as the ports of reentry for these
    shipping materials and containers.
          The conference agreement includes a section that makes
    funding provided in Section 211(b) of the Agriculture Risk
    Protection Act of 2000 (P.L. 106-224) available for the
    Farmland Protection Program.
          The conference agreement provides an additional $500,000
    to hire additional attorneys for the Trade Practices Division
    of the Office of the General Counsel to enforce the Packers and
    Stockyards Act.
          The conference agreement provides an additional $200,000
    for the Grain Inspection, Packers and Stockyards Administration
    to establish a hog contract library.
          The conference agreement includes language making
    available funds of the Emergency Watershed Program to
    accelerate completion of the Hamakua Ditch project in Hawaii.

                                   CHAPTER 2

                             DEPARTMENT OF JUSTICE

                             Federal Prison System

                             Salaries and Expenses

          The conference agreement includes $500,000 for the
    National Institute of Corrections (NIC) for a comprehensive
    assessment of medical care and incidents of inmate mortality in
    the Wisconsin State Prison System.

                           Office of Justice Programs

                               Justice Assistance

          The conference agreement includes $300,000 to expand the
    collection of data on prisoner deaths while in law enforcement
    custody.

                      Community Oriented Policing Services

          The conference agreement includes $3,080,000 under this
    heading, of which $1,880,000 is for a grant to the Pasadena,
    California, Police Department for equipment; $200,000 is for a
    grant to the City of Signal Hill, California, for equipment and
    technology for an emergency operations center; and of which
    $1,000,000 is for a grant to the State of Alabama Department of
    Forensic Sciences for equipment.

                           Juvenile Justice Programs

          The conference agreement includes $1,000,000 for a grant
    to Mobile County, Alabama, for a juvenile court network
    program.

                               General Provisions

          Sec. 201. The conference agreement includes a provision
    making technical changes to Chapter 2 of title II of division B
    of Public Law 106-246.
          Sec. 202. The conference agreement includes a provision
    appropriating $10,000,000 to the State of Texas and $2,000,000
    to the State of Arizona to reimburse county and municipal
    governments only for Federal costs associated with the handling
    and processing of illegal immigration and drug and alien
    smuggling cases.
          Sec. 203. The conference agreement includes $9,000,000 to
    establishment of the Strom Thurmond Boys & Girls Club National
    Training Center.
          Sec. 204. The conference agreement includes $500,000 for
    the New Hampshire Department of Safety to investigate and
    support the prosecution of violations of federal trucking laws.
          Sec. 205. The conference agreement includes $4,000,000
    for the State of South Dakota to establish a regional radio
    system.

                             DEPARTMENT OF COMMERCE

                       Economic and Statistical Analysis

                             salaries and expenses

          The conference agreement includes $200,000 for the
    establishment of satellite accounts for the travel and tourism
    industry.

                National Oceanic and Atmospheric Administration

                      operations, research, and facilities

          The conference agreement includes $750,000 for a study by
    the National Academy of Sciences pursuant to H.R. 2090, as
    passed by the House of Representatives on September 12, 2000.
          In addition, the conferees encourage the National Oceanic
    and Atmospheric Administration (NOAA) and the Federal Maritime
    Administration (FMA) to work collaboratively with the Great
    Lakes Science Center in Cleveland, Ohio in support of its Great
    Lakes Tour simulator and related education programming.
          The conferees also direct the National Oceanic and
    Atmospheric Administration (NOAA) to develop a plan to
    establish a program for migrating the 8 mm NEXRAD Level II data
    archives onto a modern retrievable media, and to report back to
    the Committees on Appropriations by February 1, 2001.
          Sec. 206. The conference agreement includes a technical
    change to funding provided to the National Marine Fisheries
    Management Service regarding Stellar sea lion related funding.
          Sec. 207. The conference agreement includes $7,500,000
    for assistance to certain Alaska fisheries.
          Sec. 208. The conference agreement includes $3,000,000
    for assistance to certain Hawaii fisheries.
          Sec. 209. The conference agreement includes a provision
    regarding the Bering Sea/Aleutian Islands and Gulf of Alaska
    fisheries.
          Sec. 210. The conference agreement includes $500,000 for
    the Irish Institute.
          Sec. 211. The conference agreement includes $5,000,000 to
    increase coverage and hours of Radio Free Europe/Radio Liberty
    (RFE/RL) and Voice of America (VOA) broadcasts to Russia and
    surrounding areas affected by the recent restrictions on media
    instituted by the Putin regime. In addition, the conference
    agreement includes $5,000,000 for Radio Free Asia and the Voice
    of America to increase both the quantity and quality of their
    broadcasts to China, in accordance with authorization contained
    in the China PNTR enacting legislation, Section 701(b)(2) of
    H.R. 4444.
          Before using any of the transfer authority provided in
    this section and within sixty days of enactment of this act,
    the Broadcasting Board of Governors shall provide to the
    Committees on Appropriations a spending plan for the total
    amount provided. This plan should emphasize new RL and VOA
    Russian and related broadcasts in specific areas most impacted
    by the recent media restrictions. Also included in the spending
    plan should be a projection concerning shortwave and medium
    wave technology needs in this newly closed environment. Amounts
    proposed for transfer to the Broadcasting Capital Improvements
    account should be based solely on increased broadcasting to
    Russia and surrounding areas and to China.

                                RELATED AGENCIES

                     Commission on Online Child Protection

          The conference agreement includes $750,000 for the
    Commission on Online Child Protection.

                         Small Business Administration

                             salaries and expenses

          The conference agreement includes $1,000,000 for a grant
    to establish an electronic commerce technology distribution
    center in Scranton, Pennsylvania.
          Sec. 212. The conference agreement includes $1,000,000
    for the National Museum of Jazz.

                        General Provision--This Chapter

          Sec. 213. The conference agreement includes a provision
    striking sections 406, 635 and 636, and making technical
    changes to H.R. 5548.

                                   CHAPTER 3

                             DEPARTMENT OF DEFENSE

                          Indirect Airfreight Carriers

          The conferees urge the Air Mobility Command (AMC) to
    ensure that military air freight is moved in the most time
    efficient manner possible. In furtherance of that goal, the
    conferees believe that the Civil Reserve Air Fleet (CRAF)
    program should admit and encourage indirect airfreight carriers
    which have demonstrated ability to provide efficient, cost
    effective service.

                    Distributive Training Technology Program

          Public Law 106-259 provided $29,100,000 in ``Other
    Procurement, Army'' and $65,700,000 in ``Operation and
    Maintenance, Army National Guard'' for the National Guard
    Distance Learning Program. It is the conferees' intention that
    the funds appropriated for this program shall also be available
    for courseware development and commercial off-the-shelf (COTS)
    management system software and hardware.

                           Biological Warfare Defense

          The conferees direct that of the funds appropriated in
    the Department of Defense Appropriations Act, 2001 (Public Law
    106-259) for the Biological Warfare Defense program, under
    ``Research, Development, Test and Evaluation, Defense-Wide'',
    $2,000,000 shall be used only for sensor development in the
    Defense Advanced Research Projects Agency's Standoff/Bioagent
    Pathogen Detector System program.

                                Cancer Research

          The conferees direct that, using funds appropriated in
    the Department of Defense Appropriations Act, 2001 for medical
    research programs, the Assistant Secretary of Defense (Health
    Affairs) conduct a study on whether environmental factors, such
    as air pollutants and electromagnetic radiation, contribute to
    a higher than usual rate of incidence of breast cancer in large
    populations.

                     Ballistic Missile Defense Organization

          In the Department of Defense Appropriations Act, 2001
    (Public Law 106-259), the Congress provided additional funds
    for National Missile Defense risk reduction activities. The
    Defense Department is reviewing carefully potential
    enhancements to the NMD test program, including the addition of
    flight tests as well as the collection of data on various
    targets and countermeasures. To support these flight test
    program enhancements, the conferees direct that $3,000,000 of
    the NMD risk reduction increase be allocated to sensor
    enhancements and flight test activities outlined in the Arctic
    Missile Signature Measurement Program (AMSP).

                        General Provisions--This Chapter

          The conference agreement includes a general provision
    (section 301) allowing obligation of a portion of the fiscal
    year 2001 procurement funds for the F-22 aircraft, under
    specified circumstances.
          The conference agreement includes a general provision
    (section 302) which transfers primary jurisdiction over Shemya
    Island.
          The conference agreement includes a general provision
    (section 303) requiring the Ballistic Missile Defense
    Organization to purchase no less than 40 PAC-3 missiles, the
    budgeted quantity, with fiscal year 2001 appropriated funds.
          The conference agreement includes a general provision
    (section 304) which amends section 8133 of the Department of
    Defense Appropriations Act, 2001 (Public Law 106-259),
    regarding the amount of transfer authority available to the
    Secretary of the Navy for ship cost changes.
          The conference agreement includes a general provision
    (section 305) which provides the Secretary of a military
    department with authority to transfer funds in support of
    Fisher Houses and Fisher Suites.
          The conference agreement includes a general provision
    (section 306) providing such sums as required to the Defense
    Vessel Transfer Program Account for the costs of the lease-sale
    transfers authorized by the National Defense Authorization Act,
    2001.
          The conference agreement includes a general provision
    (section 307) clarifying congressional intent concerning a Gulf
    War illness research program.
          The conference agreement includes a general provision
    (section 308) providing $150,000,000 in emergency
    appropriations to the Department of Defense, for ``Operation
    and Maintenance, Navy'', for the repair of the U.S.S. Cole,
    which was severely damaged in a terrorist attack in the port of
    Aden, Yemen, on October 12, 2000. These funds are in addition
    to any amounts appropriated in the Department of Defense
    Appropriations Act, 2001 (Public Law 106-259), and are
    designated as an emergency requirement pursuant to section
    251(b)(2)(A) of the Balanced Budget and Emergency Deficit
    Control Act of 1985, as amended. In addition to the repair, the
    Navy may expend necessary amounts from these funds for the
    necessary stabilization of the vessel and its transportation to
    the United States.
          The conference agreement includes a general provision
    (section 309) making technical corrections to Section 1092 of
    the National Defense Authorization Act, 2001, regarding the
    establishment of an Aerospace Commission.
          The conference agreement includes a general provision
    (section 310) which provides $2,000,000 only for planning and
    National Environmental Protection Act documentation for the
    proposed airfield and heliport at the Marine Corps Air Ground
    Task Training Command.
          The conference agreement includes a general provision
    (section 311) which transfers $5,000,000 to carry out the
    provisions of the Minuteman Missile National Historic Site
    Establishment Act of 1999 (Public Law 106-115; 113 Stat. 1540).
          The conference agreement includes a general provision
    (section 312) providing the Secretary of the Air Force with
    authority to transfer certain excess property.
          The conference agreement includes a general provision
    (section 313) providing $100,000,000 in emergency
    appropriations for the Overseas Contingency Operations Transfer
    Fund, to meet classified requirements requested by the
    Administration. Further details are provided in a classified
    annex to the Statement of Managers.
          The conference agreement includes a general provision
    (section 314) providing for the use of up to $3,000,000 for
    Marine Corps research into nanotechnology for consequence
    management.
          The conference agreement includes a general provision
    (section 315) specifying the use of funds made available in the
    Department of Defense Appropriations Act, 2000, for certain
    defense medical initiatives.
          The conference agreement includes a general provision
    (section 316) providing for the acquisition of certain real
    property by the Secretary of the Navy.
          The conference agreement includes a general provision
    (section 317) regarding the establishment of Marine Fire
    Training Centers.
          The conference agreement includes a general provision
    (section 318) providing the Navy authority to use funds
    provided in the Department of Defense Appropriations Act, 2001,
    for the repair of the ex-Turner Joy.
          The conference agreement includes a general provision
    (section 319) providing funds to accelerate transition of the
    information technology and information services outsourcing
    activity within the National Imagery and Mapping Agency.
          The conference agreement includes a general provision
    (section 320) restricting the use of funds provided in the
    Department of Defense Appropriations Act, 2001 for Air Force
    radar operations maintenance and support programs or contracts.
          The conference agreement includes a general provision
    (section 321) providing $1,000,000 for ``Research, Development,
    Test and Evaluation, Air Force'', to develop rapid diagnostic
    and fingerprinting techniques along with molecular monitoring
    systems for the detection of nosocomial infections.
          The conference agreement includes a general provision
    (section 322), making technical adjustments associated with
    funding provided in the Department of Defense Appropriations
    Act, 2001 for the C3RP initiative.
          The conference agreement includes a general provision
    (section 323) which establishes procedures under which the
    Departments of Defense and Interior shall provide the Congress
    with a comprehensive plan and proposed legislation for
    expansion of the U.S. Army's National Training Center at Fort
    Irwin, California. These procedures, including specific
    timelines for developing and implementing a proposed expansion
    plan and meeting the requirements of the Endangered Species and
    National Environmental Policy Acts, are the joint
    recommendations of the Secretaries of Defense and Interior to
    the Congress.
          The Secretaries have informed the Congress that, given
    the urgency of the national security considerations involved
    and the significant amount of research and analysis which has
    already been conducted, their Departments can expedite the
    various substantive and procedural reviews required to
    implement this expansion. The conferees commend the Secretaries
    of Defense and Interior for the considerable progress made in
    recent months amongst the various executive branch agencies
    involved in this process, and for committing their Departments
    to meet the specific objectives contained in the general
    provision.

                                   CHAPTER 4

                       DISTRICT OF COLUMBIA FEDERAL FUNDS

               Federal Payment of the District of Columbia Courts

          The conference agreement appropriates $400,000 in Federal
    funds to the District of Columbia courts to cover the costs of
    a fire that broke out on November 22, 2000, in the H. Carl
    Moultrie I Courthouse. The appropriation includes $350,000 for
    capital repairs and $50,000 for miscellaneous operating
    expenses in connection with the fire damage. The conference
    agreement also includes language that allows the courts to
    reallocate not more than $1,000,000 of funds already
    appropriated for fiscal year 2001 in the event the $400,000 is
    not sufficient to cover the costs. The fire caused extensive
    damage to the Superior Court's Family Division Quality Control
    Office and less severe damage to six adjacent judges' chambers,
    electrical damage to the court's cell block area, and damage to
    electrical and communications wiring.

                        General Provisions--This Chapter

          Sec. 401. The conference agreement inserts a new section
    concerning water and sewer payments by Federal agencies to the
    District of Columbia and requires the inspector general of each
    Federal entity to submit quarterly reports to the House and
    Senate Committees on Appropriations on the promptness of
    payment by the agency for water and sewer services furnished by
    the District.
          Sec. 402. The conference agreement inserts a new section
    as requested by District officials that repeals a Federal
    statute enacted in 1866 to convey certain parcels of land to
    the District to be used solely for schools. The property is at
    12th and E Streets, N.E., in the North Lincoln Park
    neighborhood of Capitol Hill and is the site of the Lovejoy
    School which ceased being used as a school in 1984, 118 years
    after the land was conveyed. The DC public school system is
    under contract to sell the property and although the City
    Council has passed local legislation to repeal the 1866 law,
    Federal legislation in necessary because the District
    government does not have the authority to pass legislation
    affecting a Federal land interest.
          Sec. 403. The conference agreement inserts a new section
    that amends language in section 160 of the FY 2000 DC
    Appropriations Act concerning the Victims of Violent Crime
    Compensation Act of 1996 that would have required any
    unobligated balance in excess of $250,000 to be transferred to
    miscellaneous receipts of the U.S. Treasury. The new section
    allows the use of $250,000 at the discretion of District
    officials and requires that amounts in excess of $250,000 be
    used in accordance with a plan developed by the District and
    approved by the House and Senate Committees on Appropriations,
    the House Committee on Government Reform, and the Senate
    Committee on Governmental Affairs. The language also requires
    that not less than 80 percent of the amounts in excess of
    $250,000 be used for direct compensation payments to crime
    victims.
          Sec. 404. The conference agreement includes a new section
    concerning the Reserve Fund for the District of Columbia
    established pursuant to the District of Columbia Appropriations
    Act, 2001 (Public Law 106-522, approved November 22, 2000).
          Sec. 405. The conference agreement includes a new section
    that conforms the enrollment count of the District of Columbia
    charter schools with existing District of Columbia law.
          Sec. 406. The conference agreement amends H.R. 4942 by
    repealing the District of Columbia Appropriations Act, 2001, as
    contained therein. Since this appropriations Act has already
    been enacted in H.R. 5633 (Public Law 106-428) including it in
    H.R. 4942 is no longer necessary.

                                   CHAPTER 5

                          ENERGY AND WATER DEVELOPMENT

                          DEPARTMENT OF DEFENSE--CIVIL

                             DEPARTMENT OF THE ARMY

                           Corps of Engineers--Civil

                             General Investigations

          The conference agreement includes an additional $900,000
    for General Investigations. Of the funds provided, $100,000 is
    for a reconnaissance study of shore protection needs at North
    Topsail Beach, North Carolina; $100,000 is for a reconnaissance
    study for a water infrastructure project in Passaic County, New
    Jersey; $100,000 is for a reconnaissance study of flooding,
    drainage, and other related problems in the Cayuga Creek
    Watershed, New York; and $600,000 is for a cost-shared
    feasibility study of the restoration of the lower St. Anthony's
    Falls natural rapids in Minnesota.

                             Construction, General

          The conference agreement includes an additional
    $2,750,000 for Construction, General. Of the funds provided,
    $75,000 shall be available for planning and design of a project
    to provide for floodplain evacuation in the watershed of Pond
    Creek, Kentucky; $100,000 shall be available for the design of
    recreation and access features at the Louisville Waterfront
    Park in Kentucky; $75,000 shall be available for research on
    the eradication of Eurasian water milfoil in Houghton Lake,
    Michigan; and $500,000 shall be available for a Limited
    Reevaluation Report for the Central Boca Raton segment of the
    Palm Beach County, Florida, shore protection project. The
    conferees are concerned that the utter lack of sand on some
    stretches of beach in Boca Raton is negatively impacting the
    local economy that is dependent on tourism. Therefore, the
    conferees recommend that the Corps of Engineers proceed as
    expeditiously as possible to renourish the beach in Boca Raton.
          In addition, $2,000,000 of the funds provided shall be
    available to initiate design and construction of the Hawaii
    Water Management Project, including Waiahole Ditch on Oahu, Kau
    Ditch on Maui, Pioneer Mill Ditch on Hawaii, and the complex
    system on the west side of Kauai.
          In addition, language has been included which provides
    that the Secretary of the Army may use up to $5,000,000 of
    previously appropriated funds to carry out the Abandoned and
    Inactive Noncoal Mine Restoration program authorized by section
    560 of Public Law 106-53.

     Flood Control, Mississippi River and Tributaries, Arkansas, Illinois,
           Kentucky, Louisiana, Mississippi, Missouri, and Tennessee

          The conference agreement includes an additional
    $3,500,000 for Flood Control, Mississippi River and Tributaries
    to be used for the repair, restoration or maintenance of
    Mississippi River levees and for the correction of deficiencies
    in the mainline Mississippi River levees.

                           DEPARTMENT OF THE INTERIOR

                             Bureau of Reclamation

                          Water and Related Resources

          The conference agreement includes an additional
    $2,000,000 for Water and Related Resources for construction of
    the Mid-Dakota Rural Water System project in South Dakota.

                              DEPARTMENT OF ENERGY

                                Energy Programs

                                 Energy Supply

          The conference agreement includes an additional $800,000
    for Energy Supply for the Prime, LLC, of central South Dakota,
    for final engineering and project development of the integrated
    ethanol complex, including an ethanol unit, waste treatment
    system, and enclosed cattle feed lot.

                                    Science

          The conference agreement includes an additional
    $1,000,000 for Science for high temperature superconducting
    research and development at Boston College.

                                   CHAPTER 6

                        General Provisions--This Chapter

          Sec. 601. The conference agreement mandates that not less
    than $1,350,000 from funds appropriated under this heading in
    the Foreign Operations, Export Financing, and Related Programs
    Appropriations Act, 2001, shall be available only for the
    Protection Project to continue its study of international
    trafficking, prostitution, slavery, debt bondage and other
    abuses of women and children.
          Sec. 602. Embassy Compensation Authority.--The conference
    agreement contains language that authorizes the use of funds
    appropriated to the account ``Economic Support Fund'' in Public
    Law 106-429 for payment to the government of the People's
    Republic of China for property loss and damage arising out of
    the May 7, 1999 incident in Belgrade, Federal Republic of
    Yugoslavia. These funds may be made available notwithstanding
    any other provision of law.

                                   CHAPTER 7

                           DEPARTMENT OF THE INTERIOR

                           Bureau of Land Management

                                Land Acquisition

          The conference agreement provides $5,000,000 for land
    exchanges authorized by Title VI of the Steens Mountain
    Cooperative Management and Protection Act.

                    United States Fish and Wildlife Service

                              resource management

          The conference agreement provides $500,000 for a grant to
    the Center for Reproductive Biology at Washington State
    University for basic research on reproduction abnormalities
    that could be causing reductions in salmon in the Columbia/
    Snake River system due to presence of high estrogen levels in
    the water. The research may also be beneficial to human health
    conditions affected by the same water borne chemicals.

                    multinational species conservation fund

          The conference agreement provides $750,000 for recently
    authorized Great Ape conservation activities.

                             National Park Service

                     operation of the national park system

          The conference agreement provides $100,000 for the
    National Capital Region to complete a feasibility study and
    select a preferred alternative site for constructing a
    boathouse in Arlington County, Virginia.
          The Department of Justice, in cooperation with the City
    of Alexandria and the National Park Service, is encouraged to
    seek expeditious settlement with the remaining six landowners
    on the Alexandria, Virginia waterfront to achieve the urban
    land use and design objectives of the city and the National
    Park Service in bringing this longstanding lawsuit to
    resolution. In settling these claims, the Justice Department
    should use, to the extent authorized by law, the permanent
    judgment appropriation established pursuant to 31 U.S.C. 1304
    as the source of any compensation to the landowners that may be
    required.

                      national recreation and preservation

          The conference agreement provides $1,600,000 for National
    Recreation and Preservation. Within the statutory aid account,
    $500,000 is specifically for continued activities at the
    National Constitution Center in Philadelphia, Pennsylvania. The
    remaining $1,100,000 is for a grant to the Historic New Bridge
    Landing Park Commission for acquisition of land immediately
    adjacent to the Historic New Bridge Landing, which is a site
    listed on the National Register of Historic Places and is a
    site of historic significance in the revolutionary war.

                           historic preservation fund

          The conference agreement provides $100,000 to be provided
    to the Massillon Heritage Foundation, Inc. in Massillon, Ohio.
    The Secretary is directed to provide this grant as soon as
    possible for critical repair and replacement needs.

                                  construction

          The conference agreement provides $3,500,000 for
    construction. Within that amount $1,500,000 is for
    reconstruction and renovation at the Stones River National
    Battlefield and $2,000,000 is for the Millennium Cultural
    Cooperative Park in Ohio.

                              Department of Energy

                              energy conservation

          The conference agreement provides $300,000 for a grant to
    the Oak Ridge National Laboratory/Nevada Test Site Development
    Corporation. These funds will be used to develop cooling,
    refrigeration, and thermal energy management equipment capable
    of using natural gas or hydrogen fuels, and to improve the
    reliability of heat-activated cooling, refrigeration, and
    thermal energy management equipment used in combined heating,
    cooling, and power applications.

                                 RELATED AGENCY

                Woodrow Wilson International Center for Scholars

                           payment to endowment fund

          The conference agreement provides $5,000,000 for the
    endowment fund of the Woodrow Wilson International Center for
    Scholars.

                        General Provision--This Chapter

          Section 701 appropriates $30 million to the Indian Health
    Service, of which $15 million is for Alaska Native alcohol
    control and sobriety programs and $15 million is for drug and
    alcohol prevention and treatment for non-Alaska tribes.

                                   CHAPTER 8

                        General Provisions--This Chapter

          The conference agreement provides funding to the Health
    Resources and Services Administration in the Department of
    Health and Human Services, for the construction of the
    Christian Nurses Hospice in Brentwood, New York ($400,000).
          The conference agreement provides funding to the
    Institute of Museum and Library Services, for expansion of the
    marine biology program at the Long Island Maritime Museum
    ($250,000).

                                   CHAPTER 9

                               LEGISLATIVE BRANCH

                            CONGRESSIONAL OPERATIONS

                            House of Representatives

         payments to widows and heirs of decreased members of congress

          The conference agreement includes the traditional death
    gratuity for the widow of Herbert H. Bateman, late a
    Representative from the State of Virginia, the widow of Bruce
    F. Vento, late a Representative from the State of Minnesota,
    and the widow of Julian C. Dixon, late a Representative from
    the State of California.

                            Archtect of the Capitol

                         Capitol Buildings and Grounds

                             salaries and expenses

          An amount of $1,033,000 is provided to construct an
    emergency egress stair from the fourth floor of the Capitol.
    These funds are designated as an emergency requirement.

                              Library of Congress

                             salaries and expenses

          The agreement provides $100,000,000 to the Library of
    Congress to establish a national digital information
    infrastructure and preservation program. Of this amount,
    $25,000,000 is provided immediately and remains available until
    expended. An additional amount up to $75,000,000 is provided to
    match dollar-for-dollar any non-federal contributions to this
    program, including in-kind contributions, that are received
    before March 31, 2003. The information and technology industry
    that has created this new medium should be a contributing
    partner in addressing digital access and preservation issues
    inherent in the new digital information environment. This
    program is a major undertaking to develop standards and a
    nationwide collecting strategy to build a national repository
    of digital materials.
          The Library is directed to develop a phased
    implementation plan for this program jointly with Federal
    entities with expertise in telecommunications technology and
    electronic commerce policy and with participation of other
    Federal and non-Federal entities. After consultation with the
    Joint Committee on the Library, membership of which is changed
    to include the chair of the Legislative Subcommittee of the
    Committee on Appropriations of the House of Representatives,
    the Library shall seek approval of the program plan from the
    Committee on House Administration, the Committee on Rules and
    Administration of the Senate, and the Committees on
    Appropriations of the House of Representatives and the Senate.
    The Library of Congress is authorized to expend up to
    $5,000,000, before approval of the plan, for the development of
    the plan and for collecting or preserving digital information
    that may otherwise vanish during the plan development and
    approval cycle.
          The overall plan should set forth a strategy for the
    Library of Congress, in collaboration with other Federal and
    non-Federal entities, to identify a national network of
    libraries and other organizations with responsibilities for
    collecting digital materials that will provide access to and
    maintain those materials. In addition to developing this
    strategy, the plan shall set forth, in concert with the
    Copyright Office, the policies, protocols, and strategies for
    the long-term preservation of such materials, including the
    technological infrastructure required at the Library of
    Congress. In developing the plan, the Library should be mindful
    of the conclusions drawn in a recent National Academy of
    Sciences report concerning the Library's trend toward
    insularity and isolation from its clients and peers in the
    transition toward digital content.

                        General Provisions--This Chapter

          The conference agreement includes a section concerning
    the Civil Service Retirement System and the Federal Employees
    Retirement System. Under current law, certain service as an
    employee of a congressional campaign committee performed before
    December 12, 1980 is creditable under the Civil Service
    Retirement System (CSRS), provided that the applicant makes the
    required employee contributions to the Civil Service Retirement
    and Disability Fund. The conference report extends the date of
    eligible service to December 31, 1990 and allows service that
    began after 1983 to be creditable under the Federal Employees
    Retirement System (FERS). The provision also permits an
    employee of a legislative service organization of the House of
    Representatives to have such service credited under CSRS or
    FERS (as applicable), upon payment of the required employee
    contributions to the retirement fund.
          The conference agreement amends, at the request of the
    managers on the part of the Senate, the amount provided for
    Senate ``miscellaneous items'' in the 2001 Legislative Branch
    Appropriations Act by striking ``$8,655,000'' and inserting
    ``$25,155,000''. The managers on the part of the House have
    receded to the request of the Senate.
          The conferees have included a new provision relating to
    the application of Senate procedure to conference reports.

                                   CHAPTER 10

                  DEPARTMENT OF DEFENSE--MILITARY CONSTRUCTION

          The conferees provide a total of $43,500,000 to the
    Department of Defense for Planning and Design, Military
    Construction, and Family Housing. These amounts are provided as
    follows:
            Account/location/facility                                 Amount
    Military Construction, Army:
        Planning and Design for Efficient Basing in Europe..     $25,000,000
        Presidio of Monterey: Information Management
          Computer Center...................................       2,000,000
    Military Construction, Air Force: MacDill AFB, Florida:
        Runway Improvements.................................      12,000,000
    Military Construction, Army National Guard:
        Helena, Montana: Fixed Wing Parking Apron...........       3,000,000
        Fort Lewis, Washington: Planning and Design for 66th
          Aviation Brigade Readiness Center.................       1,500,000
                        --------------------------------------------------------
                        ____________________________________________________
          Total.............................................      43,500,000

                                 land transfers

          The conferees include two provisions, sections 1002 and
    1003 which direct the Department of Interior to transfer,
    without consideration, parcels of public domain land to the
    Department of the Army and the Department of the Air Force.
    Section 1003 transfers land surrounding the Yakima Training
    Center in Washington to the Department of the Army, and section
    transfers land located near Cannon AFB in New Mexico to the
    Department of the Air Force. Both transfers will facilitate
    military training exercises.

                                   CHAPTER 11

                          DEPARTMENT OF TRANSPORTATION

                        General Provisions--This Chapter

          The conference agreement includes a provision that
    clarifies that the Dulles corridor project shall include a rail
    extension from the West Falls Church, Virginia metrorail
    station to Tysons Corner, Virginia.
          The conference agreement includes a provision that amends
    item 630 of section 1602 of Public Law 105-178 regarding a
    highway project in Buffalo, New York.
          The conference agreement directs the Secretary of
    Transportation to credit the State of Arkansas with the fair
    market value of land in Fort Chaffee, Arkansas, incorporated as
    right of way on the U.S. 71 relocation project, for the state
    share of the relocation project.
          The conference agreement includes an appropriation of
    $2,500,000 from the airport and airway trust fund for various
    airport improvements at the Huntsville International Airport in
    Alabama.
          The conference agreement includes an appropriation of
    $1,000,000 from the mass transit account of the highway trust
    fund for the Southeast Corridor light rail project in Dallas,
    Texas.
          The conference agreement includes a provision that would
    designate the Ports-to-Plains corridor within the State of
    Texas if the Texas Transportation Commission does not designate
    that corridor within the State of Texas by June 30, 2001. The
    Federal Highway Administration is expected to submit to the
    House and Senate Committees on Appropriations, the Senate
    Environment and Public Works Committee, and the House
    Transportation and Infrastructure Committee a recommendation
    for the remaining elements of the Ports-to-Plains corridor by
    September 30, 2001 should the states of New Mexico, Colorado,
    Oklahoma and Texas not reach a unified consensus on the
    designation of the Ports-to-Plains corridor from Dumas, Texas
    to Denver, Colorado. The Federal Highway Administration's
    recommendation shall also include the basis for its
    recommendation.
          The conference agreement includes an appropriation of
    $3,000,000 from the mass transit account of the highway trust
    fund for the Newark-Elizabeth rail link project in New Jersey.
          The conference agreement includes a provision that waives
    the requirements of section 5309(m)(3)(C) of title 49, United
    States Code, for the capital investment grants made available
    in the Department of Transportation and Related Agencies
    Appropriations Act, 2001 (Public Law 106-346). The provision
    also makes eligible for highway bridge replacement and
    rehabilitation program funds in fiscal year 2001 those projects
    specified in House report 106-940, the conference report
    accompanying the Department of Transportation and Related
    Agencies Appropriations Act, 2001 (Public Law 106-346). The
    provision also amends section 378 of the Department of
    Transportation and Related Agencies Appropriations Act, 2001 by
    inserting after ``U.S. 101'' the following: ``and Interstate 5
    Trade Corridor''.
          The conference agreement includes an appropriation of
    $4,000,000 from the highway trust fund for commercial remote
    sensing products and spatial information technologies
    authorized in section 5113 of Public Law 105-178, as amended.
          The conference agreement includes a provision that
    permits Amtrak to continue leasing vehicles from the General
    Services Administration's interagency fleet management system
    in fiscal year 2001 and for each fiscal year thereafter that
    Amtrak continues to receive a federal operating grant.
          The conference agreement includes a provision which
    clarifies financial and project management authority for a
    project funded in the Department of Transportation and Related
    Agencies Appropriations Act, 2001. The agreement requires the
    Secretary of Transportation to transfer to the City of Oshkosh,
    Wisconsin the $575,000 previously appropriated for removal of
    the Fox River Bridge, and to assume no management
    responsibility for this project.
          The conference agreement includes a provision authorizing
    the Secretary of Transportation to issue a certificate of
    documentation with endorsement for employment in the coastwise
    trade for the M/V Wells Gray and the Annandale.
          The conference agreement includes a provision authorizing
    the Administrator of the General Services Administration to
    convey Coast Guard property in Middletown, California to Lake
    County, California.
          The conference agreement includes a provision authorizing
    the Administrator of the General Services Administration or the
    Commandant of the U.S. Coast Guard to convey to the Town of
    Nantucket, Massachusetts part of U.S. Coast Guard LORAN Station
    Nantucket and additional land located in Nantucket.
          The conference agreement includes a provision authorizing
    the Administrator of the General Services Administration or the
    Commandant of the U.S. Coast Guard to convey to the City of
    Newburyport, Massachusetts the Plum Island Boat House and the
    Plum Island Lighthouse, located in Essex County, Massachusetts.
          The conference agreement includes a provision authorizing
    the Administrator of General Services Administration to
    transfer to the National Oceanic and Atmospheric Administration
    the property known as Coast Guard Station Scituate in
    Massachusetts, contingent upon the relocation of Coast Guard
    Station Scituate to a suitable site.
          The conference agreement includes a provision which
    extends from 2002 to 2004 the Coast Guard's current practice
    relating to the disposal of dry bulk cargo residue on the Great
    Lakes; requires a study on the effectiveness of the current
    practice; and authorizes the promulgation of regulations to
    regulate incidental discharges of such cargo into the Great
    Lakes, taking into account the findings of the study required
    in this section.
          The conference agreement includes a provision that amends
    the appointment process and qualifications for individuals
    serving on the Great Lakes Pilotage Advisory Committee.
          The conference agreement includes a provision that
    requires only a vessel of the United States may perform certain
    specified escort operations and towing assistance, except for a
    vessel in distress.
          The conference agreement includes a provision authorizing
    the expenditure of $100,000 in fiscal year 2001 funding for
    Coast Guard environmental compliance and restoration to
    reimburse the owner of the former Coast Guard lighthouse
    facility in Cape May, New Jersey for costs incurred for cleanup
    of lead contaminated soil. The Department of Transportation and
    Related Agencies Appropriations Act, 2001 included $100,000 for
    this purpose.
          The conference agreement includes an appropriation of
    $2,400,000, to be derived from the Highway Trust Fund, for the
    planning, development and construction of rural farm-to-market
    roads in Tulare County, California. The non-federal share of
    such improvements shall be 20 percent.
          The Department of Transportation is instructed that the
    grantee for the Nashua, New Hampshire project identified in
    section 378 of Public Law 106-346 shall be the City of Nashua,
    New Hampshire.
          The conference agreement includes a provision authorizing
    the Coast Guard to transfer not to exceed $200,000 to the
    Traverse City Area Public School District for the demolition
    and removal of Building 402 at former Coast Guard property in
    Traverse City, Michigan. The provision makes the transfer
    contingent upon receipt by the Coast Guard of a detailed, fixed
    price estimate for this work. Funding in the amount of $200,000
    was appropriated for this purpose in the Department of
    Transportation and Related Agencies Appropriations Act, 2001.
          The conference agreement includes an appropriation of
    $500,000 from the mass transit account of the highway trust
    fund for buses and bus facilities at Alabama A&M University.
    These funds are to be available until expended.
          The conference agreement includes a provision which
    directs the Federal Transit Administration to distribute
    $7,047,502 to an urbanized area over 200,000 in population
    which did not receive fiscal year 1999, 2000 and 2001 fixed
    guideway modernization funds to which it was lawfully entitled,
    prior to the formula apportionment of ``Fixed guideway
    modernization'' funds in fiscal year 2002.
          The conference agreement includes a provision that
    requires that airport improvement program formula changes
    provided under Public Law 106-181 and defined in section 104 of
    that Act shall be applied without regard to the overall funding
    levels for the airport improvement program in fiscal year 2001.
          The conference agreement includes a provision that amends
    item number 473 contained in section 1602 of the Transportation
    Equity Act for the 21st Century relating to a high priority
    project in Minnesota.
          The conference agreement includes a provision that delays
    the issuance of the final train horn rule until July 1, 2001.
    This issue will not be addressed again in subsequent
    legislation.
          The conference agreement provides $8,700,000 for four
    transportation projects in Texas, Minnesota, Wisconsin, Indiana
    and Colorado.

                                   CHAPTER 12

                        GENERAL SERVICES ADMINISTRATION

                            Real Property Activities

                             federal buildings fund

          The conference agreement includes a new provision
    providing $2,070,000 for the renovation and redevelopment of
    portions of the historic Federal building in Terre Haute,
    Indiana. The conferees direct the General Services
    Administration to report to the Committees on Appropriations by
    March 15, 2001 on steps it will take to ensure long-term
    Federal occupancy of this building.

                           DEPARTMENT OF THE TREASURY

                         United States Customs Service

     operations, maintenance and procurement, air and marine interdiction
                                    programs

          The conference agreement includes $7,000,000 for
    necessary expenses related to the procurement of two aircraft
    and related equipment expenses at the Customs National Aviation
    Center in Oklahoma City, Oklahoma. The conference agreement
    provides that none of the funds shall be available for
    obligation until an expenditure plan is submitted for approval
    to the Committees on Appropriations.

                          UNITED STATES POSTAL SERVICE

                            tinton falls, new jersey

          The conferees are aware that the Postal Service has
    identified Tinton Falls, New Jersey as a town to receive a new
    postal facility, but are concerned that this need for a new
    postal facility is not being addressed in a timely manner. The
    conferees urge the Postal Service to give this project a high
    priority in its capital facility plan for the next fiscal year.

                                   CHAPTER 13

                         DEPARTMENT OF VETERANS AFFAIRS

                          Departmental Administration

                          construction, minor projects

          The conferees have included $8,840,000 for Construction,
    minor projects. Of this amount, $8,440,000 is recommended for
    projects related to the integration of facilities at the Boston
    VA Medical Center. These funds are to supplement amounts
    previously provided for minor construction projects in fiscal
    year 2001 in Veterans Integrated Service Network 1.
          In addition, the conferees recommend $400,000 to be used
    towards construction costs of a cover for the Riverside
    National Cemetery amphitheater.

                  DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

                       Community Planning and Development

                    empowerment zones/enterprise communities

          Provides an additional $110,000,000 for urban empowerment
    zones, as authorized by the Taxpayer Relief Act of 1997.

                           community development fund

          Language is included which makes a technical amendment to
    an economic development initiative grant provided in Public Law
    106-377.
          Language is included which transfers unobligated grant
    funds from a specific city to a county in order to carry out
    the purposes for which the grant was made.
          The conferees have amended Public Law 106-377 to provide
    an additional $66,128,000 for targeted Economic Development
    Initiative grants under the terms and conditions as provided in
    Public Law 106-377, as follows:
                --$425,000 for Project Home, Allied-Dunn's Marsh
            Neighborhood Center and Prairie Crossing low income
            housing rehabilitation project in Wisconsin;
                --$1,000,000 for F.E.A.T. for the establishment of
            the Merle Travis Park in Muhlenberg County, Kentucky;
                --$750,000 for the Washington County Commission for
            the World Wildlife Educational Museum addition to the
            Dixie Chapter in St. George, Utah;
                --$250,000 for the Henry Ford Museum--Greefield
            Village in Dearborn, Michigan for expenses related to
            the design, planning and construction of the ``Great
            American Road Exhibit'';
                --$6,000,000 for Shepherd College in Shepherdstown,
            West Virginia for construction, related activities, and
            programs at the Scarborough Library;
                --$633,000 for the State of Nevada to establish a
            state-wide computer database of utilities and
            infrastructure needs for rural communities and Indian
            reservations;
                --$850,000 for the University of South Carolina for
            the operation of an historical archive at the
            University of South Carolina, Department of Archives,
            South Carolina;
                --$500,000 for the Idaho City Parks and Recreation
            Commission for the Idaho City Mine Tailings Site
            Restoration Project and Park in Idaho City, Idaho;
                --$250,000 for the Swiss Center of North America,
            New Glarus, Wisconsin;
                --$750,000 for the City of Madison, Wisconsin for
            the Troy Housing and Gardens Development;
                --$750,000 for the City of New Loft, Wisconsin for
            acquisition and restoration of a teen facility;
                --$2,000,000 for the City of Pasadena, Texas for a
            Police Academy driver training track;
                --$1,300,000 for the City of Baytown, Texas for its
            Emergency Operations Center;
                --$750,000 for the City of Las Vegas, Nevada for
            downtown development initiatives;
                --$800,000 to support the Innovative Brownfields
            Site Assessment and Remediation Technology
            Demonstration at the Defense Fuel Support Point, in
            Lynn Haven, Florida;
                --$200,000 for the Tri-County Agricultural Complex
            in Calhoun, Gulf, and Liberty Counties, Florida
                --$100,000 for the CCTV Central Coast partnership
            (California) to promote environmentally friendly,
            sustainable agriculture practices;
                --$600,000 for the Central California Coast
            Research Partnership;
                --$500,000 for the Santa Barbara County, California
            Water Agency for costs associated with emergency
            sediment removal in the Twitchell Reservoir;
                --$500,000 for the City of Paso Robles, California
            for the Oak Parks Housing Project for modernization and
            rehabilitation projects;
                --$100,000 for the Cambridge, Massachusetts
            Redevelopment Authority public spaces initiative;
                --$1,000,000 for the Sidney R. Yates and Addie
            Yates Exhibition Center at the Field Museum in Chicago,
            Illinois;
                --$750,000 for the Greater Dwight Development
            Corporation in New Haven, Connecticut for its child
            care center and offices;
                --$500,000 for methamphetamine site clean-up
            activities of the Fresno, California Sheriff's
            Department;
                --$3,000,000 to the Cross Valley Rail Corridor
            Joint Powers Authority, California for rehabilitation
            of the San Joaquin Railroad;
                --$1,000,000 to the City of Monterrey, California
            to upgrade 911 emergency response services;
                --$2,035,000 for Eastern Connecticut University for
            upgrade of its technology systems;
                --$500,000 for the City of Vernon, Connecticut for
            brownfields remediation activities;
                --$1,000,000 for the Mystic Seaport Maritime
            Education and Research Center in Mystic, Connecticut;
                --$2,700,000 for the Southeastern Pennsylvania
            Consortium on Higher Education for a collaborative Math
            and Science Institute;
                --$900,000 for the Town of Towamencin, Pennsylvania
            for its urban park and recreation recovery project;
                --$1,400,000 for Temple University, Pennsylvania
            for its Center for a Sustainable Environment;
                --$600,000 for the Township of Plainsboro, New
            Jersey for its Nature and Education Center;
                --$300,000 for the Saint Mary's County, Maryland
            River Project;
                --$450,000 for the Truitt Laboratory of the
            Chesapeake Biological Laboratory for the Bayscapes
            Habitat Reconstruction Project, Maryland;
                --$800,000 for the Edmonds Community College
            Foundation, Washington for a Center on Families;
                --$400,000 for the Access Community Health Network
            in Chicago, Illinois;
                --$500,000 for the City of Seymour, Connecticut
            Police Department for upgrades of law enforcement
            technology;
                --$2,500,000 for the Town of Beacon Falls,
            Connecticut for the Pinebridge Industrial Park;
                --$150,000 for the City of Sacramento, California
            for the Emerging Technology Institute;
                --$200,000 for the Kansas City, Kansas forensics
            crime laboratory;
                --$700,000 for the Kansas City, Kansas Humane
            Society for expenses associated with relocation of its
            facilities;
                --$350,000 for the expansion of the Dunbar
            Community Center in Springfield, Massachusetts;
                --$500,000 to the West Virginia High Technology
            Consortium Foundation, Inc. for high priority economic
            development initiatives including land acquisition;
                --$1,000,000 for the Medford Area School District,
            Wisconsin for after-school programs;
                --$300,000 for the North Central Wisconsin
            Workforce Development Board for education, training,
            counseling, emergency assistance and related services
            for displaced workers and their families in central
            Wisconsin;
                --$250,000 for the Portage County, Wisconsin
            Business Council Foundation in Stevens Point for
            activities including construction and training related
            to a business education and training center and a
            regional training clearinghouse;
                --$200,000 for the Development Association of
            Superior/Douglas Counties, Wisconsin for a
            microenterprise loan and technical assistance fund;
                --$500,000 for the Chippewa County Economic
            Corporation in Wisconsin for construction of a
            workforce development center;
                --$365,000 for the City of Wausau, Wisconsin for
            brownfields remediation in Marathon County;
                --$1,000,000 for the Unity School District, Balsam
            Lake, Wisconsin for after-school activities;
                --$100,000 for the Marathon County, Wisconsin
            Sheriff's Department for Central Wisconsin drug
            prevention initiatives;
                --$500,000 for the Santa Ana, California Police
            Department crime analysis unit;
                --$1,300,000 for the City of Jackson, Mississippi
            for its brownfields clean-up activities;
                --$500,000 for Essex County, Massachusetts for its
            wastewater and combined sewer overflow program;
                --$500,000 for Pacific Union College, California
            for the Napa Valley Resource Center job training
            program;
                --$400,000 for the establishment of the Wolfe
            Center for teen substance abuse in Napa County,
            California;
                --$500,000 for Dyer, Indiana for a water diversion
            project;
                --$500,000 for the Community and Family Resource
            Center renovation project in Newberg, Oregon;
                --$2,000,000 for the George Meany Center for Labor
            Studies in Silver Spring, Maryland;
                --$1,000,000 for the Rhode Island State Police for
            technology upgrade initiatives;
                --$2,000,000 for the War Memorial Museum in
            Milwaukee, Wisconsin;
                --$500,000 for the Mott Community College Workforce
            Development Institute in Michigan;
                --$1,000,000 for Maricopa County Community College
            for the Achieving a College Education Initiative (ACE)
            in Arizona;
                --$1,000,000 to Coffee County, Tennessee for the
            Coffee County Industrial Park;
                --$1,500,000 to the Tennessee Fire Services and
            Codes Enforcement Academy in Bedford County, Tennessee;
                --$600,000 to the 21st Century Council of Lawrence
            for the Lawrence County Industrial Park in Tennessee;
                --$350,000 to the Fayetteville-Lincoln County
            Library Board in Tennessee for the Lincoln County
            Library;
                --$150,000 to the University of Tennessee Center
            for Business and Economic Research to study the
            economic impact of alternative management policies of
            TVA-managed lakes in rural East Tennessee;
                --$2,500,000 to Winston-Salem University in
            Winston-Salem, North Carolina for the reconstruction of
            St. Phillips Church ($2,000,000) and Atkins House
            ($500,000);
                --$1,575,000 to Escambia County in Florida for
            development costs for infrastructure of Central
            Commerce Park;
                --$1,000,000 to Ashland University in Ashland, Ohio
            for rehabilitation and expansion of the Kettering
            Science Center;
                --$640,000 to Waukegan, Illinois for renovation of
            the historic Genesee Theater;
                --$1,155,000 to the Tampa Housing Authority in
            Tampa, Florida for costs associated with the Tom Dyer
            Elderly Housing Redevelopment Project.

                           DEPARTMENT OF THE TREASURY

                  Community Development Financial Institutions

       community development financial institutions fund program account

          Increases the cap on administrative expenses by
    $1,000,000, in order to accommodate increased responsibilities
    assigned to the Fund by the New Markets Initiative. The
    conferees direct the CDFI Fund to submit a report to the
    Committees on Appropriations within 60 days of enactment
    describing plans for carrying out these responsibilities,
    including staffing and resource requirements. The conferees
    would consider supplemental appropriations for this purpose if
    CDFI demonstrates that additional funds are needed.

                        Environmental Protection Agency

                             science and technology

          Language is included which provides $1,000,000 in
    additional appropriations for the continuation of the South
    Bronx Air Pollution Study being conducted by New York
    University.

                     environmental programs and management

          Language is included which makes a technical correction
    to a grant provided to the San Bernardino Valley Municipal
    Water District in Public Law 106-377.

                       state and tribal assistance grants

          Language is included which clarifies that funds
    appropriated for infrastructure needs in the New York City
    watershed shall be awarded under section 1443(d) of the Safe
    Drinking Water Act, as amended.
          Language is included which makes funds appropriated in
    Public Law 106-377 for a specific project in Indiana available
    for an alternative project.
          The conferees have amended Public Law 106-377 to include
    an additional $20,630,000 to communities or other entities for
    construction of water and wastewater treatment facilities. Cost
    share requirements and all other terms and conditions provided
    in Public Law 106-377 for these grants shall also apply to
    these grants, distributed as follows:
          1. $1,000,000 for combined sewer overflow infrastructure
    improvements on the Connecticut River.
          2. $7,280,000 to Grand Rapids, Michigan for combined
    sewer overflow infrastructure improvements.
          3. $3,000,000 for water delivery system infrastructure
    improvements for the cities of Arcadia and Sierra Madre,
    California.
          4. $7,850,000 for wastewater facility, drinking water,
    and water system delivery infrastructure improvements in Milton
    Township ($5,000,000), the Village of McDonald ($350,000), and
    the Village of Wellsville ($2,500,000), Ohio.
          5. $1,000,000 for wastewater treatment infrastructure
    improvements in Carmel, Indiana.

                      Federal Emergency Management Agency

                  emergency management planning and assistance

          Language is included which provides $100,000,000 for new
    fire fighting programs as authorized by the Federal Fire
    Prevention and Control Act, as amended.

                                   CHAPTER 14

                        General Provisions--This Chapter

          The conference agreement includes the adoption of H. Con.
    Res. 234 by the Senate.
          The conference agreement includes a new provision
    relating to the application of the Federal Reports Elimination
    and Sunset Act of 1995 to certain reports.
          The conferees direct the Comptroller General of the
    United States to (1) ascertain the ownership of the West Campus
    Buildings of the Saint Elizabeth's Hospital complex in the
    District of Columbia; (2) review and comment on existing cost
    estimates for mothballing/stabilization, phase II environmental
    mediation, phase II archaeological study, environmental impact
    study, and land use study; (3) report on any existing historic
    designations and corresponding responsibilities; and (4)
    identify action required to facilitate transfer of the
    property. The conferees request that the report be completed
    and submitted to the House and Senate Committees on
    Appropriations within 45 days of the enactment of this Act.
          The conference agreement includes a new provision
    rescinding 0.22 percent of the discretionary budget authority
    provided (or obligation limit imposed) for fiscal year 2001,
    except for those programs, projects, and activities which are
    specifically exempted. The provision exempts from rescission
    the Military Personnel accounts of the Department of Defense
    Appropriations Act, 2001, and fiscal year 2001 amounts for
    activities funded in the Departments of Labor, Health and Human
    Services, and Education, and Related Agencies Appropriations
    Act.

                                   DIVISION B

                                    TITLE I

          The conference agreement includes a section that provides
    greater availability of food assistance in day care centers by
    modifying eligibility criteria in the Child and Adult Care Food
    Program.
          The conference agreement includes a section to authorize
    a pilot program through the Summer Food Service Program to
    examine whether reducing burdensome paperwork would increase
    the availability of food assistance for children during the
    summer who, during the school year, have access to meals
    through the School Lunch Program.
          The conference agreement includes language which
    authorizes the Secretary of the Interior to conduct a
    feasibility study for a Sacramento River, California, diversion
    project.
          The conference agreement includes language which modifies
    the authorization for the Saint Francis River Basin, Missouri
    and Arkansas, project to expand the boundaries of the project
    to include Ten- and Fifteen-Mile Bayous near West Memphis,
    Arkansas.
          The conference agreement includes language which
    authorizes the Secretary of the Army to enter into an agreement
    to permit the City of Alton, Illinois, to construct
    recreational facilities at the Melvin Price Lock and Dam.
          The conference agreement includes language which
    authorizes the Secretary of the Interior, in cooperation with
    Washoe County, Nevada, to participate in the planning, design,
    and construction of the Truckee Watershed Reclamation Project.
          The conference agreement includes language which
    authorizes the Secretary of the Army to widen and deepen the
    Alafia Channel in Tampa Harbor, Florida.
          The conference agreement includes language which
    authorizes a number of environmental infrastructure projects.
          The conference agreement includes language which
    authorizes the Secretary of the Army to provide technical and
    financial assistance to carry out projects to improve the water
    quality in the Florida Keys National Marine Sanctuary.
          The conference agreement includes language to provide for
    the restoration of the San Gabriel Basin in California.
          The conference agreement includes language which
    authorizes the Secretary of the Army to participate in studies
    and the planning and design of projects which offer a long-term
    solution to the problem of groundwater pollution caused by
    perchlorates.
          The conference agreement includes language which
    authorizes the construction of fish passage facilities at the
    New Savannah Bluff Lock and Dam in Georgia and South Carolina.
          The conference agreement includes language which provides
    for the extinguishment of reversionary interests and use
    restrictions at the Port of Umatilla, Oregon.
          The conference agreement includes language which repeals
    section 101(b)(6) of the Water Resources Development Act of
    2000.
          The conference agreement includes language which directs
    the Secretary of the Army to reimburse the East Bay Municipal
    Water District for the Federal share of costs incurred by the
    district for the Penn Mine, Calaveras County, California,
    aquatic ecosystem restoration project.
          The conference agreement includes language which
    authorizes the Secretary of the Army to construct intake
    facilities at Greers Ferry Lake, Arkansas, for the benefit of
    Lonoke and White Counties in Arkansas.
          The conference agreement includes language which
    authorizes the Secretary of the Army to provide the non-Federal
    sponsor of the Chehalis River and Tributaries, Washington,
    project credit toward the non-Federal share of the cost of the
    project for work carried out by the non-Federal sponsor before
    the date of enactment of a project cooperation agreement.
          Section 119 includes a technical correction to permit the
    National Park Service to issue a grant to the city of Ocean
    Beach, New York.
          Section 120 directs the National Park Service to work
    with Fort Sumter Tours, Inc., the concessionaire at Fort Sumter
    National Monument in South Carolina, on an amicable solution to
    the current legal dispute. In addition, the Director shall
    immediately extend the current contract through March 15, 2001,
    and for 180 days if the final settlement is agreed to by both
    parties.
          Section 121 amends title VIII of the Department of the
    Interior and Related Agencies Appropriations Act, 2001 to
    derive funding under that title from the Land and Water
    Conservation Fund. This reference was inadvertently omitted
    from the original legislation.
          Section 122 amends the Energy Policy Act of 1992 to
    include a reference to liquid fuels domestically produced from
    natural gas.
          Section 123 incorporates by reference the text of the
    bill H.R. 4904, as passed by the House of Representatives on
    September 26, 2000, expressing the policy of the United States
    regarding the U.S. relationship with Native Hawaiians. The text
    of H.R. 4904 is as follows:

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

    SECTION 1. FINDINGS.

        Congress makes the following findings:
                (1) The Constitution vests Congress with the
            authority to address the conditions of the indigenous,
            native people of the United States.
                (2) Native Hawaiians, the native people of the
            Hawaiian archipelago which is now part of the United
            States, are indigenous, native people of the United
            States.
                (3) The United States has a special trust
            relationship to promote the welfare of the native
            people of the United States, including Native
            Hawaiians.
                (4) Under the treaty making power of the United
            States, Congress exercised its constitutional authority
            to confirm a treaty between the United States and the
            government that represented the Hawaiian people, and
            from 1826 until 1893, the United States recognized the
            independence of the Kingdom of Hawaii, extended full
            diplomatic recognition to the Hawaiian government, and
            entered into treaties and conventions with the Hawaiian
            monarchs to govern commerce and navigation in 1826,
            1842, 1849, 1875, and 1887.
                (5) Pursuant to the provisions of the Hawaiian
            Homes Commission Act, 1920 (42 Stat. 108, chapter 42),
            the United States set aside 203,500 acres of land in
            the Federal territory that later became the State of
            Hawaii to address the conditions of Native Hawaiians.
                (6) By setting aside 203,500 acres of land for
            Native Hawaiian homesteads and farms, the Act assists
            the Native Hawaiian community in maintaining distinct
            native settlements throughout the State of Hawaii.
                (7) Approximately 6,800 Native Hawaiian lessees and
            their family members reside on Hawaiian Home Lands and
            approximately 18,000 Native Hawaiians who are eligible
            to reside on the Home Lands are on a waiting list to
            receive assignments of land.
                (8) In 1959, as part of the compact admitting
            Hawaii into the United States, Congress established the
            Ceded Lands Trust for five purposes, one of which is
            the betterment of the conditions of Native Hawaiians.
            Such trust consists of approximately 1,800,000 acres of
            land, submerged lands, and the revenues derived from
            such lands, the assets of which have never been
            completely inventoried or segregated.
                (9) Throughout the years, Native Hawaiians have
            repeatedly sought access to the Ceded Lands Trust and
            its resources and revenues in order to establish and
            maintain native settlements and distinct native
            communities throughout the State.
                (10) The Hawaiian Home Lands and the Ceded Lands
            provide an important foundation for the ability of the
            Native Hawaiian community to maintain the practice of
            Native Hawaiian culture, language, and traditions, and
            for the survival of the Native Hawaiian people.
                (11) Native Hawaiians have maintained other
            distinctly native areas in Hawaii.
                (12) On November 23, 1993, Public Law 103-150 (107
            Stat. 1510) (commonly known as the Apology Resolution)
            was enacted into law, extending an apology on behalf of
            the United States to the Native people of Hawaii for
            the United States role in the overthrow of the Kingdom
            of Hawaii.
                (13) The Apology Resolution acknowledges that the
            overthrow of the Kingdom of Hawaii occurred with the
            active participation of agents and citizens of the
            United States and further acknowledges that the Native
            Hawaiian people never directly relinquished their
            claims to their inherent sovereignty as a people over
            their national lands to the United States, either
            through their monarchy or through a plebiscite or
            referendum.
                (14) The Apology Resolution expresses the
            commitment of Congress and the President to acknowledge
            the ramifications of the overthrow of the Kingdom of
            Hawaii and to support reconciliation efforts between
            the United States and Native Hawaiians; and to have
            Congress and the President, through the President's
            designated officials, consult with Native Hawaiians on
            the reconciliation process as called for under the
            Apology Resolution.
                (15) Despite the overthrow of the Hawaiian
            government, Native Hawaiians have continued to maintain
            their separate identity as a distinct native community
            through the formation of cultural, social, and
            political institutions, and to give expression to their
            rights as native people to self-determination and self-
            governance as evidenced through their participation in
            the Office of Hawaiian Affairs.
                (16) Native Hawaiians also maintain a distinct
            Native Hawaiian community through the provision of
            governmental services to Native Hawaiians, including
            the provision of health care services, educational
            programs, employment and training programs, children's
            services, conservation programs, fish and wildlife
            protection, agricultural programs, native language
            immersion programs and native language immersion
            schools from kindergarten through high school, as well
            as college and master's degree programs in native
            language immersion instruction, and traditional justice
            programs, and by continuing their efforts to enhance
            Native Hawaiian self-determination and local control.
                (17) Native Hawaiians are actively engaged in
            Native Hawaiian cultural practices, traditional
            agricultural methods, fishing and subsistence
            practices, maintenance of cultural use areas and sacred
            sites, protection of burial sites, and the exercise of
            their traditional rights to gather medicinal plants and
            herbs, and food sources.
                (18) The Native Hawaiian people wish to preserve,
            develop, and transmit to future Native Hawaiian
            generations their ancestral lands and Native Hawaiian
            political and cultural identity in accordance with
            their traditions, beliefs, customs and practices,
            language, and social and political institutions, and to
            achieve greater self-determination over their own
            affairs.
                (19) This Act provides for a process within the
            framework of Federal law for the Native Hawaiian people
            to exercise their inherent rights as a distinct
            aboriginal, indigenous, native community to reorganize
            a Native Hawaiian government for the purpose of giving
            expression to their rights as native people to self-
            determination and self-governance.
                (20) The United States has declared that--
                        (A) the United States has a special
                    responsibility for the welfare of the native
                    peoples of the United States, including Native
                    Hawaiians;
                        (B) Congress has identified Native
                    Hawaiians as a distinct indigenous group within
                    the scope of its Indian affairs power, and has
                    enacted dozens of statutes on their behalf
                    pursuant to its recognized trust
                    responsibility; and
                        (C) Congress has also delegated broad
                    authority to administer a portion of the
                    Federal trust responsibility to the State of
                    Hawaii.
                (21) The United States has recognized and
            reaffirmed the special trust relationship with the
            Native Hawaiian people through--
                        (A) the enactment of the Act entitled ``An
                    Act to provide for the admission of the State
                    of Hawaii into the Union'', approved March 18,
                    1959 (Public Law 86-3; 73 Stat. 4) by--
                                (i) ceding to the State of Hawaii
                            title to the public lands formerly held
                            by the United States, and mandating
                            that those lands be held in public
                            trust for five purposes, one of which
                            is for the betterment of the conditions
                            of Native Hawaiians; and
                                (ii) transferring the United States
                            responsibility for the administration
                            of the Hawaiian Home Lands to the State
                            of Hawaii, but retaining the authority
                            to enforce the trust, including the
                            exclusive right of the United States to
                            consent to any actions affecting the
                            lands which comprise the corpus of the
                            trust and any amendments to the
                            Hawaiian Homes Commission Act, 1920 (42
                            Stat. 108, chapter 42) that are enacted
                            by the legislature of the State of
                            Hawaii affecting the beneficiaries
                            under the Act.
                (22) The United States continually has recognized
            and reaffirmed that--
                        (A) Native Hawaiians have a cultural,
                    historic, and land-based link to the
                    aboriginal, native people who exercised
                    sovereignty over the Hawaiian Islands;
                        (B) Native Hawaiians have never
                    relinquished their claims to sovereignty or
                    their sovereign lands;
                        (C) the United States extends services to
                    Native Hawaiians because of their unique status
                    as the aboriginal, native people of a once
                    sovereign nation with whom the United States
                    has a political and legal relationship; and
                        (D) the special trust relationship of
                    American Indians, Alaska Natives, and Native
                    Hawaiians to the United States arises out of
                    their status as aboriginal, indigenous, native
                    people of the United States.

    SEC. 2. DEFINITIONS.

        In this Act:
                (1) Aboriginal, indigenous, native people.--The
            term ``aboriginal, indigenous, native people'' means
            those people whom Congress has recognized as the
            original inhabitants of the lands and who exercised
            sovereignty prior to European contact in the areas that
            later became part of the United States.
                (2) Adult members.--The term ``adult members''
            means those Native Hawaiians who have attained the age
            of 18 at the time the Secretary publishes the final
            roll, as provided in section 7(a)(3) of this Act.
                (3) Apology resolution.--The term ``Apology
            Resolution'' means Public Law 103-150 (107 Stat. 1510),
            a joint resolution offering an apology to Native
            Hawaiians on behalf of the United States for the
            participation of agents of the United States in the
            January 17, 1893 overthrow of the Kingdom of Hawaii.
                (4) Ceded lands.--The term ``ceded lands'' means
            those lands which were ceded to the United States by
            the Republic of Hawaii under the Joint Resolution to
            provide for annexing the Hawaiian Islands to the United
            States of July 7, 1898 (30 Stat. 750), and which were
            later transferred to the State of Hawaii in the Act
            entitled ``An Act to provide for the admission of the
            State of Hawaii into the Union'' approved March 18,
            1959 (Public Law 86-3; 73 Stat. 4).
                (5) Commission.--The term ``Commission'' means the
            commission established in section 7 of this Act to
            certify that the adult members of the Native Hawaiian
            community contained on the roll developed under that
            section meet the definition of Native Hawaiian, as
            defined in paragraph (7)(A).
                (6) Indigenous, native people.--The term
            ``indigenous, native people'' means the lineal
            descendants of the aboriginal, indigenous, native
            people of the United States.
                (7) Native hawaiian.--
                        (A) Prior to the recognition by the United
                    States of a Native Hawaiian government under
                    the authority of section 7(d)(2) of this Act,
                    the term ``Native Hawaiian'' means the
                    indigenous, native people of Hawaii who are the
                    lineal descendants of the aboriginal,
                    indigenous, native people who resided in the
                    islands that now comprise the State of Hawaii
                    on or before January 1, 1893, and who occupied
                    and exercised sovereignty in the Hawaiian
                    archipelago, including the area that now
                    constitutes the State of Hawaii, and includes
                    all Native Hawaiians who were eligible in 1921
                    for the programs authorized by the Hawaiian
                    Homes Commission Act (42 Stat. 108, chapter 42)
                    and their lineal descendants.
                        (B) Following the recognition by the United
                    States of the Native Hawaiian government under
                    section 7(d)(2) of this Act, the term ``Native
                    Hawaiian'' shall have the meaning given to such
                    term in the organic governing documents of the
                    Native Hawaiian government.
                (8) Native hawaiian government.--The term ``Native
            Hawaiian government'' means the citizens of the
            government of the Native Hawaiian people that is
            recognized by the United States under the authority of
            section 7(d)(2) of this Act.
                (9) Native hawaiian interim governing council.--The
            term ``Native Hawaiian Interim Governing Council''
            means the interim governing council that is organized
            under section 7(c) of this Act.
                (10) Roll.--The term ``roll'' means the roll that
            is developed under the authority of section 7(a) of
            this Act.
                (11) Secretary.--The term ``Secretary'' means the
            Secretary of the Interior.
                (12) Task force.--The term ``Task Force'' means the
            Native Hawaiian Interagency Task Force established
            under the authority of section 6 of this Act.

    SEC. 3. UNITED STATES POLICY AND PURPOSE.

        (a) Policy.--The United States reaffirms that--
                (1) Native Hawaiians are a unique and distinct
            aboriginal, indigenous, native people, with whom the
            United States has a political and legal relationship;
                (2) the United States has a special trust
            relationship to promote the welfare of Native
            Hawaiians;
                (3) Congress possesses the authority under the
            Constitution to enact legislation to address the
            conditions of Native Hawaiians and has exercised this
            authority through the enactment of--
                        (A) the Hawaiian Homes Commission Act, 1920
                    (42 Stat. 108, chapter 42);
                        (B) the Act entitled ``An Act to provide
                    for the admission of the State of Hawaii into
                    the Union'', approved March 18, 1959 (Public
                    Law 86-3; 73 Stat. 4); and
                        (C) more than 150 other Federal laws
                    addressing the conditions of Native Hawaiians;
                (4) Native Hawaiians have--
                        (A) an inherent right to autonomy in their
                    internal affairs;
                        (B) an inherent right of self-determination
                    and self-governance;
                        (C) the right to reorganize a Native
                    Hawaiian government; and
                        (D) the right to become economically self-
                    sufficient; and
                (5) the United States shall continue to engage in a
            process of reconciliation and political relations with
            the Native Hawaiian people.
        (b) Purpose.--It is the intent of Congress that the purpose
    of this Act is to provide a process for the reorganization of a
    Native Hawaiian government and for the recognition by the
    United States of the Native Hawaiian government for purposes of
    continuing a government-to-government relationship.

    SEC. 4. ESTABLISHMENT OF THE UNITED STATES OFFICE FOR NATIVE HAWAIIAN
                        AFFAIRS.

        (a) In General.--There is established within the Office of
    the Secretary the United States Office for Native Hawaiian
    Affairs.
        (b) Duties of the Office.--The United States Office for
    Native Hawaiian Affairs shall--
                (1) effectuate and coordinate the special trust
            relationship between the Native Hawaiian people and the
            United States through the Secretary, and with all other
            Federal agencies;
                (2) upon the recognition of the Native Hawaiian
            government by the United States as provided for in
            section 7(d)(2) of this Act, effectuate and coordinate
            the special trust relationship between the Native
            Hawaiian government and the United States through the
            Secretary, and with all other Federal agencies;
                (3) fully integrate the principle and practice of
            meaningful, regular, and appropriate consultation with
            the Native Hawaiian people by providing timely notice
            to, and consulting with the Native Hawaiian people
            prior to taking any actions that may affect traditional
            or current Native Hawaiian practices and matters that
            may have the potential to significantly or uniquely
            affect Native Hawaiian resources, rights, or lands, and
            upon the recognition of the Native Hawaiian government
            as provided for in section 7(d)(2) of this Act, fully
            integrate the principle and practice of meaningful,
            regular, and appropriate consultation with the Native
            Hawaiian government by providing timely notice to, and
            consulting with the Native Hawaiian people and the
            Native Hawaiian government prior to taking any actions
            that may have the potential to significantly affect
            Native Hawaiian resources, rights, or lands;
                (4) consult with the Native Hawaiian Interagency
            Task Force, other Federal agencies, and with relevant
            agencies of the State of Hawaii on policies, practices,
            and proposed actions affecting Native Hawaiian
            resources, rights, or lands;
                (5) be responsible for the preparation and
            submittal to the Committee on Indian Affairs of the
            Senate, the Committee on Energy and Natural Resources
            of the Senate, and the Committee on Resources of the
            House of Representatives of an annual report detailing
            the activities of the Interagency Task Force
            established under section 6 of this Act that are
            undertaken with respect to the continuing process of
            reconciliation and to effect meaningful consultation
            with the Native Hawaiian people and the Native Hawaiian
            government and providing recommendations for any
            necessary changes to existing Federal statutes or
            regulations promulgated under the authority of Federal
            law;
                (6) be responsible for continuing the process of
            reconciliation with the Native Hawaiian people, and
            upon the recognition of the Native Hawaiian government
            by the United States as provided for in section 7(d)(2)
            of this Act, be responsible for continuing the process
            of reconciliation with the Native Hawaiian government;
            and
                (7) assist the Native Hawaiian people in
            facilitating a process for self-determination,
            including but not limited to the provision of technical
            assistance in the development of the roll under section
            7(a) of this Act, the organization of the Native
            Hawaiian Interim Governing Council as provided for in
            section 7(c) of this Act, and the recognition of the
            Native Hawaiian government as provided for in section
            7(d) of this Act.
        (c) Authority.--The United States Office for Native
    Hawaiian Affairs is authorized to enter into a contract with or
    make grants for the purposes of the activities authorized or
    addressed in section 7 of this Act for a period of 3 years from
    the date of the enactment of this Act.

    SEC. 5. DESIGNATION OF DEPARTMENT OF JUSTICE REPRESENTATIVE.

        The Attorney General shall designate an appropriate
    official within the Department of Justice to assist the United
    States Office for Native Hawaiian Affairs in the implementation
    and protection of the rights of Native Hawaiians and their
    political, legal, and trust relationship with the United
    States, and upon the recognition of the Native Hawaiian
    government as provided for in section 7(d)(2) of this Act, in
    the implementation and protection of the rights of the Native
    Hawaiian government and its political, legal, and trust
    relationship with the United States.

    SEC. 6. NATIVE HAWAIIAN INTERAGENCY TASK FORCE.

        (a) Establishment.--There is established an interagency
    task force to be known as the ``Native Hawaiian Interagency
    Task Force''.
        (b) Composition.--The Task Force shall be composed of
    officials, to be designated by the President, from--
                (1) each Federal agency that establishes or
            implements policies that affect Native Hawaiians or
            whose actions may significantly or uniquely impact on
            Native Hawaiian resources, rights, or lands;
                (2) the United States Office for Native Hawaiian
            Affairs established under section 4 of this Act; and
                (3) the Executive Office of the President.
        (c) Lead Agencies.--The Department of the Interior and the
    Department of Justice shall serve as the lead agencies of the
    Task Force, and meetings of the Task Force shall be convened at
    the request of either of the lead agencies.
        (d) Co-Chairs.--The Task Force representative of the United
    States Office for Native Hawaiian Affairs established under the
    authority of section 4 of this Act and the Attorney General's
    designee under the authority of section 5 of this Act shall
    serve as co-chairs of the Task Force.
        (e) Duties.--The responsibilities of the Task Force shall
    be--
                (1) the coordination of Federal policies that
            affect Native Hawaiians or actions by any agency or
            agencies of the Federal Government which may
            significantly or uniquely impact on Native Hawaiian
            resources, rights, or lands;
                (2) to assure that each Federal agency develops a
            policy on consultation with the Native Hawaiian people,
            and upon recognition of the Native Hawaiian government
            by the United States as provided in section 7(d)(2) of
            this Act, consultation with the Native Hawaiian
            government; and
                (3) to assure the participation of each Federal
            agency in the development of the report to Congress
            authorized in section 4(b)(5) of this Act.

    SEC. 7. PROCESS FOR THE DEVELOPMENT OF A ROLL FOR THE ORGANIZATION OF A
                        NATIVE HAWAIIAN INTERIM GOVERNING COUNCIL, FOR THE
                        ORGANIZATION OF A NATIVE HAWAIIAN INTERIM GOVERNING
                        COUNCIL AND A NATIVE HAWAIIAN GOVERNMENT, AND FOR
                        THE RECOGNITION OF THE NATIVE HAWAIIAN GOVERNMENT.

        (a) Roll.--
                (1) Preparation of roll.--The United States Office
            for Native Hawaiian Affairs shall assist the adult
            members of the Native Hawaiian community who wish to
            participate in the reorganization of a Native Hawaiian
            government in preparing a roll for the purpose of the
            organization of a Native Hawaiian Interim Governing
            Council. The roll shall include the names of the--
                        (A) adult members of the Native Hawaiian
                    community who wish to become citizens of a
                    Native Hawaiian government and who are--
                                (i) the lineal descendants of the
                            aboriginal, indigenous, native people
                            who resided in the islands that now
                            comprise the State of Hawaii on or
                            before January 1, 1893, and who
                            occupied and exercised sovereignty in
                            the Hawaiian archipelago; or
                                (ii) Native Hawaiians who were
                            eligible in 1921 for the programs
                            authorized by the Hawaiian Homes
                            Commission Act (42 Stat. 108, chapter
                            42) or their lineal descendants; and
                        (B) the children of the adult members
                    listed on the roll prepared under this
                    subsection.
                (2) Certification and submission.--
                        (A) Commission.--
                                (i) In general.--There is
                            authorized to be established a
                            Commission to be composed of nine
                            members for the purpose of certifying
                            that the adult members of the Native
                            Hawaiian community on the roll meet the
                            definition of Native Hawaiian, as
                            defined in section 2(7)(A) of this Act.
                                (ii) Membership.--
                                        (I) Appointment.--The
                                    Secretary shall appoint the
                                    members of the Commission in
                                    accordance with subclause (II).
                                    Any vacancy on the Commission
                                    shall not affect its powers and
                                    shall be filled in the same
                                    manner as the original
                                    appointment.
                                        (II) Requirements.--The
                                    members of the Commission shall
                                    be Native Hawaiian, as defined
                                    in section 2(7)(A) of this Act,
                                    and shall have expertise in the
                                    certification of Native
                                    Hawaiian ancestry.
                                        (III) Congressional
                                    submission of suggested
                                    candidates.--In appointing
                                    members of the Commission, the
                                    Secretary may choose such
                                    members from among--
                                                (aa) five suggested
                                            candidates submitted by
                                            the Majority Leader of
                                            the Senate and the
                                            Minority Leader of the
                                            Senate from a list of
                                            candidates provided to
                                            such leaders by the
                                            Chairman and Vice
                                            Chairman of the
                                            Committee on Indian
                                            Affairs of the Senate;
                                            and
                                                (bb) four suggested
                                            candidates submitted by
                                            the Speaker of the
                                            House of
                                            Representatives and the
                                            Minority Leader of the
                                            House of
                                            Representatives from a
                                            list provided to the
                                            Speaker and the
                                            Minority Leader by the
                                            Chairman and Ranking
                                            member of the Committee
                                            on Resources of the
                                            House of
                                            Representatives.
                                (iii) Expenses.--Each member of the
                            Commission shall be allowed travel
                            expenses, including per diem in lieu of
                            subsistence, at rates authorized for
                            employees of agencies under subchapter
                            I of chapter 57 of title 5, United
                            States Code, while away from their
                            homes or regular places of business in
                            the performance of services for the
                            Commission.
                        (B) Certification.--The Commission shall
                    certify that the individuals listed on the roll
                    developed under the authority of this
                    subsection are Native Hawaiians, as defined in
                    section 2(7)(A) of this Act.
                (3) Secretary.--
                        (A) Certification.--The Secretary shall
                    review the Commission's certification of the
                    membership roll and determine whether it is
                    consistent with applicable Federal law,
                    including the special trust relationship
                    between the United States and the indigenous,
                    native people of the United States.
                        (B) Publication.--Upon making the
                    determination authorized in subparagraph (A),
                    the Secretary shall publish a final roll.
                        (C) Appeal.--
                                (i) Establishment of mechanism.--
                            The Secretary is authorized to
                            establish a mechanism for an appeal of
                            the Commission's determination as it
                            concerns--
                                        (I) the exclusion of the
                                    name of a person who meets the
                                    definition of Native Hawaiian,
                                    as defined in section 2(7)(A)
                                    of this Act, from the roll; or
                                        (II) a challenge to the
                                    inclusion of the name of a
                                    person on the roll on the
                                    grounds that the person does
                                    not meet the definition of
                                    Native Hawaiian, as so defined.
                                (ii) Publication; update.--The
                            Secretary shall publish the final roll
                            while appeals are pending, and shall
                            update the final roll and the
                            publication of the final roll upon the
                            final disposition of any appeal.
                        (D) Failure to act.--If the Secretary fails
                    to make the certification authorized in
                    subparagraph (A) within 90 days of the date
                    that the Commission submits the membership roll
                    to the Secretary, the certification shall be
                    deemed to have been made, and the Commission
                    shall publish the final roll.
                (4) Effect of publication.--The publication of the
            final roll shall serve as the basis for the eligibility
            of adult members listed on the roll to participate in
            all referenda and elections associated with the
            organization of a Native Hawaiian Interim Governing
            Council and the Native Hawaiian government.
        (b) Recognition of Rights.--The right of the Native
    Hawaiian people to organize for their common welfare and to
    adopt appropriate organic governing documents is hereby
    recognized by the United States.
        (c) Organization of the Native Hawaiian Interim Governing
    Council.--
                (1) Organization.--The adult members listed on the
            roll developed under the authority of subsection (a)
            are authorized to--
                        (A) develop criteria for candidates to be
                    elected to serve on the Native Hawaiian Interim
                    Governing Council;
                        (B) determine the structure of the Native
                    Hawaiian Interim Governing Council; and
                        (C) elect members to the Native Hawaiian
                    Interim Governing Council.
                (2) Election.--Upon the request of the adult
            members listed on the roll developed under the
            authority of subsection (a), the United States Office
            for Native Hawaiian Affairs may assist the Native
            Hawaiian community in holding an election by secret
            ballot (absentee and mail balloting permitted), to
            elect the membership of the Native Hawaiian Interim
            Governing Council.
                (3) Powers.--
                        (A) In general.--The Native Hawaiian
                    Interim Governing Council is authorized to
                    represent those on the roll in the
                    implementation of this Act and shall have no
                    powers other than those given to it in
                    accordance with this Act.
                        (B) Funding.--The Native Hawaiian Interim
                    Governing Council is authorized to enter into a
                    contract or grant with any Federal agency,
                    including but not limited to, the United States
                    Office for Native Hawaiian Affairs within the
                    Department of the Interior and the
                    Administration for Native Americans within the
                    Department of Health and Human Services, to
                    carry out the activities set forth in
                    subparagraph (C).
                        (C) Activities.--
                                (i) In general.--The Native
                            Hawaiian Interim Governing Council is
                            authorized to conduct a referendum of
                            the adult members listed on the roll
                            developed under the authority of
                            subsection (a) for the purpose of
                            determining (but not limited to) the
                            following:
                                        (I) The proposed elements
                                    of the organic governing
                                    documents of a Native Hawaiian
                                    government.
                                        (II) The proposed powers
                                    and authorities to be exercised
                                    by a Native Hawaiian
                                    government, as well as the
                                    proposed privileges and
                                    immunities of a Native Hawaiian
                                    government.
                                        (III) The proposed civil
                                    rights and protection of such
                                    rights of the citizens of a
                                    Native Hawaiian government and
                                    all persons subject to the
                                    authority of a Native Hawaiian
                                    government.
                                (ii) Development of organic
                            governing documents.--Based upon the
                            referendum, the Native Hawaiian Interim
                            Governing Council is authorized to
                            develop proposed organic governing
                            documents for a Native Hawaiian
                            government.
                                (iii) Distribution.--The Native
                            Hawaiian Interim Governing Council is
                            authorized to distribute to all adult
                            members of those listed on the roll, a
                            copy of the proposed organic governing
                            documents, as drafted by the Native
                            Hawaiian Interim Governing Council,
                            along with a brief impartial
                            description of the proposed organic
                            governing documents.
                                (iv) Consultation.--The Native
                            Hawaiian Interim Governing Council is
                            authorized to freely consult with those
                            members listed on the roll concerning
                            the text and description of the
                            proposed organic governing documents.
                        (D) Elections.--
                                (i) In general.--The Native
                            Hawaiian Interim Governing Council is
                            authorized to hold elections for the
                            purpose of ratifying the proposed
                            organic governing documents, and upon
                            ratification of the organic governing
                            documents, to hold elections for the
                            officers of the Native Hawaiian
                            government.
                                (ii) Assistance.--Upon the request
                            of the Native Hawaiian Interim
                            Governing Council, the United States
                            Office of Native Hawaiian Affairs may
                            assist the Council in conducting such
                            elections.
                (4) Termination.--The Native Hawaiian Interim
            Governing Council shall have no power or authority
            under this Act after the time at which the duly elected
            officers of the Native Hawaiian government take office.
        (d) Recognition of the Native Hawaiian Government.--
                (1) Process for recognition.--
                        (A) Submittal of organic governing
                    documents.--The duly elected officers of the
                    Native Hawaiian government shall submit the
                    organic governing documents of the Native
                    Hawaiian government to the Secretary.
                        (B) Certifications.--Within 90 days of the
                    date that the duly elected officers of the
                    Native Hawaiian government submit the organic
                    governing documents to the Secretary, the
                    Secretary shall certify that the organic
                    governing documents--
                                (i) were adopted by a majority vote
                            of the adult members listed on the roll
                            prepared under the authority of
                            subsection (a);
                                (ii) are consistent with applicable
                            Federal law and the special trust
                            relationship between the United States
                            and the indigenous native people of the
                            United States;
                                (iii) provide for the exercise of
                            those governmental authorities that are
                            recognized by the United States as the
                            powers and authorities that are
                            exercised by other governments
                            representing the indigenous, native
                            people of the United States;
                                (iv) provide for the protection of
                            the civil rights of the citizens of the
                            Native Hawaiian government and all
                            persons subject to the authority of the
                            Native Hawaiian government, and to
                            assure that the Native Hawaiian
                            government exercises its authority
                            consistent with the requirements of
                            section 202 of the Act of April 11,
                            1968 (25 U.S.C. 1302);
                                (v) prevent the sale, disposition,
                            lease, or encumbrance of lands,
                            interests in lands, or other assets of
                            the Native Hawaiian government without
                            the consent of the Native Hawaiian
                            government;
                                (vi) establish the criteria for
                            citizenship in the Native Hawaiian
                            government; and
                                (vii) provide authority for the
                            Native Hawaiian government to negotiate
                            with Federal, State, and local
                            governments, and other entities.
                        (C) Failure to act.--If the Secretary fails
                    to act within 90 days of the date that the duly
                    elected officers of the Native Hawaiian
                    government submitted the organic governing
                    documents of the Native Hawaiian government to
                    the Secretary, the certifications authorized in
                    subparagraph (B) shall be deemed to have been
                    made.
                        (D) Resubmission in case of noncompliance
                    with federal law.--
                                (i) Resubmission by the
                            secretary.--If the Secretary determines
                            that the organic governing documents,
                            or any part thereof, are not consistent
                            with applicable Federal law, the
                            Secretary shall resubmit the organic
                            governing documents to the duly elected
                            officers of the Native Hawaiian
                            government along with a justification
                            for each of the Secretary's findings as
                            to why the provisions are not
                            consistent with such law.
                                (ii) Amendment and resubmission by
                            the native hawaiian government.--If the
                            organic governing documents are
                            resubmitted to the duly elected
                            officers of the Native Hawaiian
                            government by the Secretary under
                            clause (i), the duly elected officers
                            of the Native Hawaiian government
                            shall--
                                        (I) amend the organic
                                    governing documents to ensure
                                    that the documents comply with
                                    applicable Federal law; and
                                        (II) resubmit the amended
                                    organic governing documents to
                                    the Secretary for certification
                                    in accordance with
                                    subparagraphs (B) and (C).
                (2) Federal recognition.--
                        (A) Recognition.--Notwithstanding any other
                    provision of law, upon the election of the
                    officers of the Native Hawaiian government and
                    the certifications (or deemed certifications)
                    by the Secretary authorized in paragraph (1),
                    Federal recognition is hereby extended to the
                    Native Hawaiian government as the
                    representative governing body of the Native
                    Hawaiian people.
                        (B) No diminishment of rights or
                    privileges.--Nothing contained in this Act
                    shall diminish, alter, or amend any existing
                    rights or privileges enjoyed by the Native
                    Hawaiian people which are not inconsistent with
                    the provisions of this Act.

    SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

        There is authorized to be appropriated such sums as may be
    necessary to carry out the activities authorized in this Act.

    SEC. 9. REAFFIRMATION OF DELEGATION OF FEDERAL AUTHORITY; NEGOTIATIONS.

        (a) Reaffirmation.--The delegation by the United States of
    authority to the State of Hawaii to address the conditions of
    Native Hawaiians contained in the Act entitled ``An Act to
    provide for the admission of the State of Hawaii into the
    Union'' approved March 18, 1959 (Public Law 86-3; 73 Stat. 5)
    is hereby reaffirmed.
        (b) Negotiations.--Upon the Federal recognition of the
    Native Hawaiian government pursuant to section 7(d)(2) of this
    Act, the United States is authorized to negotiate and enter
    into an agreement with the State of Hawaii and the Native
    Hawaiian government regarding the transfer of lands, resources,
    and assets dedicated to Native Hawaiian use under existing law
    as in effect on the date of the enactment of this Act to the
    Native Hawaiian government.

    SEC. 10. DISCLAIMER.

        Nothing in this Act is intended to serve as a settlement of
    any claims against the United States, or to affect the rights
    of the Native Hawaiian people under international law.

    SEC. 11. REGULATIONS.

        The Secretary is authorized to make such rules and
    regulations and such delegations of authority as the Secretary
    deems necessary to carry out the provisions of this Act.

    SEC. 12. SEVERABILITY.

        In the event that any section or provision of this Act, or
    any amendment made by this Act is held invalid, it is the
    intent of Congress that the remaining sections or provisions of
    this Act, and the amendments made by this Act, shall continue
    in full force and effect.

          Section 124 includes a technical correction to allow the
    use of National Park Service funds for the acquisition of lands
    near Saddleback Mountain, Maine for inclusion in the
    Appalachian National Scenic Trail.
          Section 125 incorporates by reference the text of the
    bill S. 2273, the Black Rock Desert-High Rock Canyon Emigrant
    Trails National Conservation Area Act of 2000, as passed by the
    United States Senate on October 5, 2000. The text of S. 2273 is
    as follows:

      AN ACT To establish the Black Rock Desert-High Rock Canyon Emigrant
           Trails National Conservation Area, and for other purposes.

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

    SECTION 1. SHORT TITLE.

        This Act may be cited as the ``Black Rock Desert-High Rock
    Canyon Emigrant Trails National Conservation Area Act of
    2000''.

    SEC. 2. FINDINGS.

        The Congress finds the following:
                (1) The areas of northwestern Nevada known as the
            Black Rock Desert and High Rock Canyon contain and
            surround the last nationally significant, untouched
            segments of the historic California emigrant Trails,
            including wagon ruts, historic inscriptions, and a
            wilderness landscape largely unchanged since the days
            of the pioneers.
                (2) The relative absence of development in the
            Black Rock Desert and High Rock Canyon areas from
            emigrant times to the present day offers a unique
            opportunity to capture the terrain, sights, and
            conditions of the overland trails as they were
            experienced by the emigrants and to make available to
            both present and future generations of Americans the
            opportunity of experiencing emigrant conditions in an
            unaltered setting.
                (3) The Black Rock Desert and High Rock Canyon
            areas are unique segments of the Northern Great Basin
            and contain broad representation of the Great Basin's
            land forms and plant and animal species, including
            golden eagles and other birds of prey, sage grouse,
            mule deer, pronghorn antelope, bighorn sheep, free
            roaming horses and burros, threatened fish and
            sensitive plants.
                (4) The Black Rock-High Rock region contains a
            number of cultural and natural resources that have been
            declared eligible for National Historic Landmark and
            Natural Landmark status, including a portion of the
            1843-44 John Charles Fremont exploration route, the
            site of the death of Peter Lassen, early military
            facilities, and examples of early homesteading and
            mining.
                (5) The archeological, paleontological, and
            geographical resources of the Black Rock-High Rock
            region include numerous prehistoric and historic Native
            American sites, wooly mammoth sites, some of the
            largest natural potholes of North America, and a
            remnant dry Pleistocene lakebed (playa) where the
            curvature of the Earth may be observed.
                (6) The two large wilderness mosaics that frame the
            conservation area offer exceptional opportunities for
            solitude and serve to protect the integrity of the
            viewshed of the historic emigrant trails.
                (7) Public lands in the conservation area have been
            used for domestic livestock grazing for over a century,
            with resultant benefits to community stability and
            contributions to the local and State economies. It has
            not been demonstrated that continuation of this use
            would be incompatible with appropriate protection and
            sound management of the resource values of these lands;
            therefore, it is expected that such grazing will
            continue in accordance with the management plan for the
            conservation area and other applicable laws and
            regulations.
                (8) The Black Rock Desert playa is a unique natural
            resource that serves as the primary destination for the
            majority of visitors to the conservation area,
            including visitors associated with large-scale
            permitted events. It is expected that such permitted
            events will continue to be administered in accordance
            with the management plan for the conservation area and
            other applicable laws and regulations.

    SEC. 3. DEFINITIONS.

        As used in this Act:
                (1) The term ``Secretary'' means the Secretary of
            the Interior.
                (2) The term ``public lands'' has the meaning
            stated in section 103(e) of the Federal Land Policy and
            Management Act of 1976 (43 U.S.C. 1702(e)).
                (3) The term ``conservation area'' means the Black
            Rock Desert-High Rock Canyon Emigrant Trails National
            Conservation Area established pursuant to section 4 of
            this Act.

    SEC. 4. ESTABLISHMENT OF THE CONSERVATION AREA.

        (a) Establishment and Purposes.--In order to conserve,
    protect, and enhance for the benefit and enjoyment of present
    and future generations the unique and nationally important
    historical, cultural, paleontological, scenic, scientific,
    biological, educational, wildlife, riparian, wilderness,
    endangered species, and recreational values and resources
    associated with the Applegate-Lassen and Nobles Trails
    corridors and surrounding areas, there is hereby established
    the Black Rock Desert-High Rock Canyon Emigrant Trails National
    Conservation Area in the State of Nevada.
        (b) Areas Included.--The conservation area shall consist of
    approximately 797,100 acres of public lands as generally
    depicted on the map entitled ``Black Rock Desert Emigrant Trail
    National Conservation Area'' and dated July 19, 2000.
        (c) Maps and Legal Description.--As soon as practicable
    after the date of the enactment of this Act, the Secretary
    shall submit to Congress a map and legal description of the
    conservation area. The map and legal description shall have the
    same force and effect as if included in this Act, except the
    Secretary may correct clerical and typographical errors in such
    map and legal description. Copies of the map and legal
    description shall be on file and available for public
    inspection in the appropriate offices of the Bureau of Land
    Management.

    SEC. 5. MANAGEMENT.

        (a) Management.--The Secretary, acting through the Bureau
    of Land Management, shall manage the conservation area in a
    manner that conserves, protects and enhances its resources and
    values, including those resources and values specified in
    subsection 4(a), in accordance with this Act, the Federal Land
    Policy and Management Act of 1976 (43 U.S.C. 1701 et seq.), and
    other applicable provisions of law.
        (b) Access.--
                (1) In general.--The Secretary shall maintain
            adequate access for the reasonable use and enjoyment of
            the conservation area.
                (2) Private land.--The Secretary shall provide
            reasonable access to privately owned land or interests
            in land within the boundaries of the conservation area.
                (3) Existing public roads.--The Secretary is
            authorized to maintain existing public access within
            the boundaries of the conservation area in a manner
            consistent with the purposes for which the conservation
            area was established.
        (c) Uses.--
                (1) In general.--The Secretary shall only allow
            such uses of the conservation area as the Secretary
            finds will further the purposes for which the
            conservation area is established.
                (2) Off-highway vehicle use.--Except where needed
            for administrative purposes or to respond to an
            emergency, use of motorized vehicles in the
            conservation area shall be permitted only on roads and
            trails and in other areas designated for use of
            motorized vehicles as part of the management plan
            prepared pursuant to subsection (e).
                (3) Permitted events.--The Secretary may continue
            to permit large-scale events in defined, low impact
            areas of the Black Rock Desert playa in the
            conservation area in accordance with the management
            plan prepared pursuant to subsection (e).
        (d) Hunting, Trapping, and Fishing.--Nothing in this Act
    shall be deemed to diminish the jurisdiction of the State of
    Nevada with respect to fish and wildlife management, including
    regulation of hunting and fishing, on public lands within the
    conservation area.
        (e) Management Plan.--Within three years following the date
    of enactment of this Act, the Secretary shall develop a
    comprehensive resource management plan for the long-term
    protection and management of the conservation area. The plan
    shall be developed with full public participation and shall
    describe the appropriate uses and management of the
    conservation area consistent with the provisions of this Act.
    The plan may incorporate appropriate decisions contained in any
    current management or activity plan for the area and may use
    information developed in previous studies of the lands within
    or adjacent to the conservation area.
        (f) Grazing.--Where the Secretary of the Interior currently
    permits livestock grazing in the conservation area, such
    grazing shall be allowed to continue subject to all applicable
    laws, regulations, and executive orders.
        (g) Visitor Service Facilities.--The Secretary is
    authorized to establish, in cooperation with other public or
    private entities as the Secretary may deem appropriate, visitor
    service facilities for the purpose of providing information
    about the historical, cultural, ecological, recreational, and
    other resources of the conservation area.

    SEC. 6. WITHDRAWAL.

        (a) In General.--Subject to valid existing rights, all
    Federal lands within the conservation area and all lands and
    interests therein which are hereafter acquired by the United
    States are hereby withdrawn from all forms of entry,
    appropriation, or disposal under the public land laws, from
    location, entry, and patent under the mining laws, from
    operation of the mineral leasing and geothermal leasing laws
    and from the minerals materials laws and all amendments
    thereto.

    SEC. 7. NO BUFFER ZONES.

        The Congress does not intend for the establishment of the
    conservation area to lead to the creation of protective
    perimeters or buffer zones around the conservation area. The
    fact that there may be activities or uses on lands outside the
    conservation area that would not be permitted in the
    conservation area shall not preclude such activities or uses on
    such lands up to the boundary of the conservation area
    consistent with other applicable laws.

    SEC. 8. WILDERNESS.

        (a) Designation.--In furtherance of the purposes of the
    Wilderness Act of 1964 (16 U.S.C. 1131 et seq.), the following
    lands in the State of Nevada are designated as wilderness, and,
    therefore, as components of the National Wilderness
    Preservation System:
                (1) Certain lands in the Black Rock Desert
            Wilderness Study Area comprised of approximately
            315,700 acres, as generally depicted on a map entitled
            ``Black Rock Desert Wilderness--Proposed'' and dated
            July 19, 2000, and which shall be known as the Black
            Rock Desert Wilderness.
                (2) Certain lands in the Pahute Peak Wilderness
            Study Area comprised of approximately 57,400 acres, as
            generally depicted on a map entitled ``Pahute Peak
            Wilderness--Proposed'' and dated July 19, 2000, and
            which shall be known as the Pahute Peak Wilderness.
                (3) Certain lands in the North Black Rock Range
            Wilderness Study Area comprised of approximately 30,800
            acres, as generally depicted on a map entitled ``North
            Black Rock Range Wilderness--Proposed'' and dated July
            19, 2000, and which shall be known as the North Black
            Rock Range Wilderness.
                (4) Certain lands in the East Fork High Rock Canyon
            Wilderness Study Area comprised of approximately 52,800
            acres, as generally depicted on a map entitled ``East
            Fork High Rock Canyon Wilderness--Proposed'' and dated
            July 19, 2000, and which shall be known as the East
            Fork High Rock Canyon Wilderness.
                (5) Certain lands in the High Rock Lake Wilderness
            Study Area comprised of approximately 59,300 acres, as
            generally depicted on a map entitled ``High Rock Lake
            Wilderness--Proposed'' and dated July 19, 2000, and
            which shall be known as the High Rock Lake Wilderness.
                (6) Certain lands in the Little High Rock Canyon
            Wilderness Study Area comprised of approximately 48,700
            acres, as generally depicted on a map entitled ``Little
            High Rock Canyon Wilderness--Proposed'' and dated July
            19, 2000, and which shall be known as the Little High
            Rock Canyon Wilderness.
                (7) Certain lands in the High Rock Canyon
            Wilderness Study Area and Yellow Rock Canyon Wilderness
            Study Area comprised of approximately 46,600 acres, as
            generally depicted on a map entitled ``High Rock Canyon
            Wilderness--Proposed'' and dated July 19, 2000, and
            which shall be known as the High Rock Canyon
            Wilderness.
                (8) Certain lands in the Calico Mountains
            Wilderness Study Area comprised of approximately 65,400
            acres, as generally depicted on a map entitled ``Calico
            Mountains Wilderness--Proposed'' and dated July 19,
            2000, and which shall be known as the Calico Mountains
            Wilderness.
                (9) Certain lands in the South Jackson Mountains
            Wilderness Study Area comprised of approximately 56,800
            acres, as generally depicted on a map entitled ``South
            Jackson Mountains Wilderness--Proposed'' and dated July
            19, 2000, and which shall be known as the South Jackson
            Mountains Wilderness.
                (10) Certain lands in the North Jackson Mountains
            Wilderness Study Area comprised of approximately 24,000
            acres, as generally depicted on a map entitled ``North
            Jackson Mountains Wilderness--Proposed'' and dated July
            19, 2000, and which shall be known as the North Jackson
            Mountains Wilderness.
        (b) Administration of Wilderness Areas.--Subject to valid
    existing rights, each wilderness area designated by this Act
    shall be administered by the Secretary in accordance with the
    provisions of the Wilderness Act, except that any reference in
    such provisions to the effective date of the Wilderness Act
    shall be deemed to be a reference to the date of enactment of
    this Act and any reference to the Secretary of Agriculture
    shall be deemed to be a reference to the Secretary of the
    Interior.
        (c) Maps and Legal Description.--As soon as practicable
    after the date of the enactment of this Act, the Secretary
    shall submit to Congress a map and legal description of the
    wilderness areas designated under this Act. The map and legal
    description shall have the same force and effect as if included
    in this Act, except the Secretary may correct clerical and
    typographical errors in such map and legal description. Copies
    of the map and legal description shall be on file and available
    for public inspection in the appropriate offices of the Bureau
    of Land Management.
        (d) Grazing.--Within the wilderness areas designated under
    subsection (a), the grazing of livestock, where established
    prior to the date of enactment of this Act, shall be permitted
    to continue subject to such reasonable regulations, policies,
    and practices as the Secretary deems necessary, as long as such
    regulations, policies, and practices fully conform with and
    implement the intent of Congress regarding grazing in such
    areas as such intent is expressed in the Wilderness Act and
    section 101(f) of Public Law 101-628.

    SEC. 9. AUTHORIZATION OF APPROPRIATIONS.

        There is hereby authorized to be appropriated such sums as
    may be necessary to carry out the provisions of this Act.

          Section 126 increases the annual authorized funding level
    for the Illinois and Michigan Canal National Heritage Corridor
    Commission from $250,000 to $1,000,000.
          Section 127. The bill S. 2885, the Jamestown 400th
    Commemoration Commission Act of 2000, as passed in the United
    States Senate on October 5, 2000, is incorporated by reference.
    The text of S. 2885 is as follows:

     AN ACT TO establish the Jamestown 400th Commemoration Commission, and
                               for other purposes

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

    SECTION 1. SHORT TITLE.

        This Act may be cited as the ``Jamestown 400th
    Commemoration Commission Act of 2000''.

    SEC. 2. FINDINGS AND PURPOSE.

        (a) Findings.--Congress finds that--
                (1) the founding of the colony at Jamestown,
            Virginia in 1607, the first permanent English colony in
            the New World, and the capital of Virginia for 92
            years, has major significance in the history of the
            United States;
                (2) the settlement brought people from throughout
            the Atlantic Basin together to form a multicultural
            society, including English, other Europeans, Native
            Americans, and Africans;
                (3) the economic, political, religious, and social
            institutions that developed during the first 9 decades
            of the existence of Jamestown continue to have profound
            effects on the United States, particularly in English
            common law and language, cross cultural relationships,
            and economic structure and status;
                (4) the National Park Service, the Association for
            the Preservation of Virginia Antiquities, and the
            Jamestown-Yorktown Foundation of the Commonwealth of
            Virginia collectively own and operate significant
            resources related to the early history of Jamestown;
            and
                (5) in 1996--
                        (A) the Commonwealth of Virginia designated
                    the Jamestown-Yorktown Foundation as the State
                    agency responsible for planning and
                    implementing the Commonwealth's portion of the
                    commemoration of the 400th anniversary of the
                    founding of the Jamestown settlement;
                        (B) the Foundation created the Celebration
                    2007 Steering Committee, known as the Jamestown
                    2007 Steering Committee; and
                        (C) planning for the commemoration began.
        (b) Purpose.--The purpose of this Act is to establish the
    Jamestown 400th Commemoration Commission to--
                (1) ensure a suitable national observance of the
            Jamestown 2007 anniversary by complementing the
            programs and activities of the Commonwealth of
            Virginia;
                (2) cooperate with and assist the programs and
            activities of the State in observance of the Jamestown
            2007 anniversary;
                (3) assist in ensuring that Jamestown 2007
            observances provide an excellent visitor experience and
            beneficial interaction between visitors and the natural
            and cultural resources of the Jamestown sites;
                (4) assist in ensuring that the Jamestown 2007
            observances are inclusive and appropriately recognize
            the experiences of all people present in 17th century
            Jamestown;
                (5) provide assistance to the development of
            Jamestown-related programs and activities;
                (6) facilitate international involvement in the
            Jamestown 2007 observances;
                (7) support and facilitate marketing efforts for a
            commemorative coin, stamp, and related activities for
            the Jamestown 2007 observances; and
                (8) assist in the appropriate development of
            heritage tourism and economic benefits to the United
            States.

    SEC. 3. DEFINITIONS.

        In this Act:
                (1) Commemoration.--The term ``commemoration''
            means the commemoration of the 400th anniversary of the
            founding of the Jamestown settlement.
                (2) Commission.--The term ``Commission'' means the
            Jamestown 400th Commemoration Commission established by
            section 4(a).
                (3) Governor.--The term ``Governor'' means the
            Governor of Virginia.
                (4) Secretary.--The term ``Secretary'' means the
            Secretary of the Interior.
                (5) State.--The term ``State'' means the
            Commonwealth of Virginia, including agencies and
            entities of the Commonwealth.

    SEC. 4. JAMESTOWN 400TH COMMEMORATION COMMISSION.

        (a) In General.--There is established a commission to be
    known as the ``Jamestown 400th Commemoration Commission''.
        (b) Membership.--
                (1) In general.--The Commission shall be composed
            of 15 members, of whom--
                        (A) 4 members shall be appointed by the
                    Secretary, taking into consideration the
                    recommendations of the Chairperson of the
                    Jamestown 2007 Steering Committee;
                        (B) 4 members shall be appointed by the
                    Secretary, taking into consideration the
                    recommendations of the Governor;
                        (C) 2 members shall be employees of the
                    National Park Service, of which--
                                (i) 1 shall be the Director of the
                            National Park Service (or a designee);
                            and
                                (ii) 1 shall be an employee of the
                            National Park Service having experience
                            relevant to the commemoration, to be
                            appointed by the Secretary; and
                        (D) 5 members shall be individuals that
                    have an interest in, support for, and expertise
                    appropriate to, the commemoration, to be
                    appointed by the Secretary.
                (2) Term; vacancies.--
                        (A) Term.--A member of the Commission shall
                    be appointed for the life of the Commission.
                        (B) Vacancies.--
                                (i) In general.--A vacancy on the
                            Commission shall be filled in the same
                            manner in which the original
                            appointment was made.
                                (ii) Partial term.--A member
                            appointed to fill a vacancy on the
                            Commission shall serve for the
                            remainder of the term for which the
                            predecessor of the member was
                            appointed.
                (3) Meetings.--
                        (A) In general.--The Commission shall
                    meet--
                                (i) at least twice each year; or
                                (ii) at the call of the Chairperson
                            or the majority of the members of the
                            Commission.
                        (B) Initial meeting.--Not later than 30
                    days after the date on which all members of the
                    Commission have been appointed, the Commission
                    shall hold the initial meeting of the
                    Commission.
                (4) Voting.--
                        (A) In general.--The Commission shall act
                    only on an affirmative vote of a majority of
                    the members of the Commission.
                        (B) Quorum.--A majority of the Commission
                    shall constitute a quorum.
                (5) Chairperson.--The Secretary shall appoint a
            Chairperson of the Commission, taking into
            consideration any recommendations of the Governor.
        (c) Duties.--
                (1) In general.--The Commission shall--
                        (A) plan, develop, and execute programs and
                    activities appropriate to commemorate the 400th
                    anniversary of the founding of Jamestown;
                        (B) generally facilitate Jamestown-related
                    activities throughout the United States;
                        (C) encourage civic, patriotic, historical,
                    educational, religious, economic, and other
                    organizations throughout the United States to
                    organize and participate in anniversary
                    activities to expand the understanding and
                    appreciation of the significance of the
                    founding and early history of Jamestown;
                        (D) coordinate and facilitate for the
                    public scholarly research on, publication
                    about, and interpretation of, Jamestown; and
                        (E) ensure that the 400th anniversary of
                    Jamestown provides a lasting legacy and long-
                    term public benefit by assisting in the
                    development of appropriate programs and
                    facilities.
                (2) Plans; reports.--
                        (A) Strategic plan; annual performance
                    plans.--In accordance with the Government
                    Performance and Results Act of 1993 (Public Law
                    103-62; 107 Stat. 285), the Commission shall
                    prepare a strategic plan and annual performance
                    plans for the activities of the Commission
                    carried out under this Act.
                        (B) Final report.--Not later than September
                    30, 2008, the Commission shall complete a final
                    report that contains--
                                (i) a summary of the activities of
                            the Commission;
                                (ii) a final accounting of funds
                            received and expended by the
                            Commission; and
                                (iii) the findings and
                            recommendations of the Commission.
        (d) Powers of the Commission.--The Commission may--
                (1) accept donations and make dispersions of money,
            personal services, and real and personal property
            related to Jamestown and of the significance of
            Jamestown in the history of the United States;
                (2) appoint such advisory committees as the
            Commission determines to be necessary to carry out this
            Act;
                (3) authorize any member or employee of the
            Commission to take any action that the Commission is
            authorized to take by this Act;
                (4) procure supplies, services, and property, and
            make or enter into contracts, leases or other legal
            agreements, to carry out this Act (except that any
            contracts, leases or other legal agreements made or
            entered into by the Commission shall not extend beyond
            the date of termination of the Commission);
                (5) use the United States mails in the same manner
            and under the same conditions as other Federal
            agencies;
                (6) subject to approval by the Commission, make
            grants in amounts not to exceed $10,000 to communities
            and nonprofit organizations to develop programs to
            assist in the commemoration;
                (7) make grants to research and scholarly
            organizations to research, publish, or distribute
            information relating to the early history of Jamestown;
            and
                (8) provide technical assistance to States,
            localities, and nonprofit organizations to further the
            commemoration.
        (e) Commission Personnel Matters.--
                (1) Compensation of members of the commission.--
                        (A) In general.--Except as provided in
                    subparagraph (B), a member of the Commission
                    shall serve without compensation.
                        (B) Federal employees.--A member of the
                    Commission who is an officer or employee of the
                    Federal Government shall serve without
                    compensation in addition to the compensation
                    received for the services of the member as an
                    officer or employee of the Federal Government.
                        (C) Travel expenses.--A member of the
                    Commission shall be allowed travel expenses,
                    including per diem in lieu of subsistence, at
                    rates authorized for an employee of an agency
                    under subchapter I of chapter 57 of title 5,
                    United States Code, while away from the home or
                    regular place of business of the member in the
                    performance of the duties of the Commission.
                (2) Staff.--
                        (A) In general.--The Chairperson of the
                    Commission may, without regard to the civil
                    service laws (including regulations), appoint
                    and terminate an executive director and such
                    other additional personnel as are necessary to
                    enable the Commission to perform the duties of
                    the Commission.
                        (B) Confirmation of executive director.--
                    The employment of an executive director shall
                    be subject to confirmation by the Commission.
                (3) Compensation.--
                        (A) In general.--Except as provided in
                    subparagraph (B), the Chairperson of the
                    Commission may fix the compensation of the
                    executive director and other personnel without
                    regard to the provisions of chapter 51 and
                    subchapter III of chapter 53 of title 5, United
                    States Code, relating to classification of
                    positions and General Schedule pay rates.
                        (B) Maximum rate of pay.--The rate of pay
                    for the executive director and other personnel
                    shall not exceed the rate payable for level V
                    of the Executive Schedule under section 5316 of
                    title 5, United States Code.
                (4) Detail of government employees.--
                        (A) Federal employees.--
                                (i) In general.--On the request of
                            the Commission, the head of any Federal
                            agency may detail, on a reimbursable or
                            non-reimbursable basis, any of the
                            personnel of the agency to the
                            Commission to assist the Commission in
                            carrying out the duties of the
                            Commission under this Act.
                                (ii) Civil service status.--The
                            detail of an employee under clause (i)
                            shall be without interruption or loss
                            of civil service status or privilege.
                        (B) State employees.--The Commission may--
                                (i) accept the services of
                            personnel detailed from States
                            (including subdivisions of States); and
                                (ii) reimburse States for services
                            of detailed personnel.
                (5) Volunteer and uncompensated services.--
            Notwithstanding section 1342 of title 31, United States
            Code, the Commission may accept and use voluntary and
            uncompensated services as the Commission determines
            necessary.
                (6) Support services.--The Director of the National
            Park Service shall provide to the Commission, on a
            reimbursable basis, such administrative support
            services as the Commission may request.
        (f) Procurement of Temporary and Intermittent Services.--
    The Chairperson of the Commission may procure temporary and
    intermittent services in accordance with section 3109(b) of
    title 5, United States Code, at rates for individuals that do
    not exceed the daily equivalent of the annual rate of basic pay
    prescribed for level V of the Executive Schedule under section
    5316 of that title.
        (g) FACA Nonapplicability.--Section 14(b) of the Federal
    Advisory Committee Act (5 U.S.C. App.) shall not apply to the
    Commission.
        (h) No Effect on Authority.--Nothing in this section
    supersedes the authority of the State, the National Park
    Service, or the Association for the Preservation of Virginia
    Antiquities, concerning the commemoration.
        (i) Termination.--The Commission shall terminate on
    December 31, 2008.

    SEC. 5. AUTHORIZATION OF APPROPRIATIONS.

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

          Section 128 provides guidance to the National Park
    Service on restricting the use of snowmobiles in units of the
    National Park System.
          Section 129 extends an agreement, through March 31, 2001,
    dealing with seven campsite leases in the Biscayne Bay, Miami/
    Dade County area of Florida, collectively known as
    ``Stiltsville''.
          Section 130 authorizes a grant of $1.3 million for the
    National Park Service to acquire land in Lower Phalen Creek
    near St. Paul, Minnesota for the Mississippi National River and
    Recreation Area. The land is for a trail that is being named
    after the late Congressman Bruce Vento.
          Section 131 authorizes the transfer of funds to the
    George Washington's Fredericksburg Foundation, Inc. for a
    cooperative agreement to manage Ferry Farm, which was George
    Washington's boyhood home.
          Section 132 prohibits the Secretary of the Interior from
    using funds to pay the salaries or expenses related to the
    issuance of a request for proposal related to a light rail
    system at Grand Canyon National Park until June 1, 2001. In
    addition, the Secretary is directed to report directly to the
    Committee prior to any additional action regarding a request
    for proposal on alternative transportation options for the
    park. These options should include a phase-in period based on
    newly updated visitation numbers. The report should also
    address using a bus/transit option only during high peak
    visitation months. Alternatives to be analyzed and costed in
    the report include: (1) an alternative fueled bus alternative
    with parking outside the park; (2) a rapid transit alternative
    and (3) a combination bus/rapid transit alternative.
          Section 133 prohibits the Secretary of the Interior from
    removing a white cross erected in 1934 by the Veterans of
    Foreign Wars to honor the memory of fallen World War I
    veterans. The cross is located within the boundary of the
    Mojave National Preserve along Cima Road, approximately 11
    miles south of Interstate 15.
          Section 134 extends the term of the Chesapeake and Ohio
    Canal National Historical Park Commission.
          Section 135 allows funds provided in Public Law 106-291
    for land acquisition by the National Park Service in fiscal
    year 2001 for Brandywine Battlefield, Ice Age National Scenic
    Trail, Mississippi National River and Recreation Area,
    Shenandoah National Heritage Area, and Fallen Timbers
    Battlefield and Fort Miamis National Historic Site to be used
    for a grant to a state, local government, or to a land
    management entity.
          Section 137 extends the boundary of Gulf Islands National
    Seashore in Mississippi to include Cat Island.
          Section 138. The conference agreement includes a new
    provision regarding limitations on Federal Thrift Savings Plan
    contributions.
          Section 139. The conference agreement includes a new
    provision regarding the exclusion of elements of the United
    States Secret Service from certain activities.
          Section 140. The conference agreement includes a new
    provision providing for an average 3.7 percent salary
    adjustment for Federal employees in January, 2001, consistent
    with the alternative pay plan submitted by the Administration
    on November 30, 2000.
          Section 141. The conference agreement includes a new
    provision repealing mandatory retirement for the Alaska
    Railroad.
          Section 142. The conference agreement includes a
    provision amending the Juvenile Justice and Delinquency
    Prevention Act to allow a two year exception for the State of
    Alaska with respect to the holding of juveniles in adult
    facilities.
          Section 143. The conference agreement contains the ``LPTV
    Pilot Project Digital Data Services Act''.
          Section 144. The conference agreement includes a
    provision to amend the following: the Magnuson-Stevens Fishery
    Conservation and Management Act; P.L. 106-246; P.L. 105-83;
    P.L. 99-5; P.L. 106-113 regarding a fishery research vessel;
    the implementation of a fishing capacity reduction program for
    the Commercial King and Tanner Crab Fisheries in the Bering Sea
    and Aleutian Islands; P.L. 89-702 to be referred to as the Fur
    Seal Act of 1966; the National Marine Sanctuaries Act (16
    U.S.C. 1433, 1434); and the Sustainable Fisheries Act (16
    U.S.C. 1855 note).
          Section 145. The conference agreement includes language
    amending the Department of State Special Agents Retirment Act
    of 1998 to allow agents who retired between January 1, 1997,
    and the enactment of the Act on November 13, 1998, to also be
    eligible for the increased benefits provided by the Act.
          Section 146. The conference agreement includes a
    provision expressing the sense of Congress calling upon the
    President of the United States to take action to provide relief
    from injury caused by steel imports.
          Section 147. The conference agreement includes a
    provision amending the Johnson Act to prohibit gambling on
    peri-Hawaiian cruises.
          Section 148. The conference agreement includes language
    to ban political advertising by public broadcasters.
          Section 149. The conference agreement includes language
    extending a certain small business program, which would
    otherwise expire.
          Section 150. The conference agreement includes
    $105,000,000 in direct spending to the Department of Health and
    Human Services for the Ricky Ray Hemophilia Relief Fund, of
    which $10,000,000 is for program management.
          Section 151. The conference agreement includes
    $60,400,000 in direct spending to the Department of Labor for
    costs related to administering the Energy Employees
    Occupational Illness Compensation Program enacted as Title
    XXXVI of the Defense Authorization Act of 2000. This program
    was established to compensate individuals who have suffered
    disabling and potentially fatal illnesses as a result of their
    work in the Department of Energy's nuclear weapons complex. The
    Secretary of Labor is authorized to transfer these funds to
    other federal agencies to the extent necessary to implement the
    Energy Employees Occupational Illness Compensation Act.
          Section 152. The conference agreement includes a
    provision to make certain technical and conforming amendments
    to the Medicare/PPS law to allow the Moffit Cancer Research and
    Treatment Center to be treated under existing law the same as
    the other ten Medicare/PPS exempt institutions in the United
    States.
          The conference agreement includes language which provides
    that the Secretary of the Army may establish a pilot program to
    provide environmental assistance to non-Federal interests in
    northern Wisconsin.

               TITLE II--VIETNAM EDUCATION FOUNDATION ACT OF 2000

          This title enacts a bill to establish a Vietnam Education
    Foundation, to provide fellowships for Vietnamese to study in
    the United States at the graduate and post-graduate level in
    the sciences, math, and medicine. It would also support
    American professors to teach these subjects in appropriate
    Vietnamese institutions. The bill authorizes an appropriation
    of $5,000,000 in fiscal year 2001. Beginning in FY2002, the
    Secretary of the Treasury would transfer $5,000,000 annually to
    the Foundation from debt repayments that Vietnam has agreed to
    make to the United States in settlement of debt incurred prior
    to 1976 by the Republic of South Vietnam. The Foundation can
    also solicit and accept private funds.

           TITLE III--COLORADO UTE SETTLEMENT ACT AMENDMENTS OF 2000

          The conference agreement includes the text of S. 2508,
    the Colorado Ute Settlement Act Amendments of 2000.

         TITLE IV--DESIGNATION OF AMERICAN MUSEUM OF SCIENCE AND ENERGY

          The conference agreement includes language which will
    permit the American Museum of Science and Energy located in Oak
    Ridge, Tennessee, to accept and use donations, fees, and gifts
    to offset the cost of operating the facility.

                 TITLE V--DELTA REGIONAL AUTHORITY ACT OF 2000

          The conference agreement includes language which
    authorizes the Delta Regional Authority.

                  TITLE VI--DAKOTA WATER RESOURCES ACT OF 2000

          The conference agreement includes the text of S. 623, the
    Dakota Water Resources Act of 2000.

                                   TITLE VII

          The conference agreement includes an Act authorizing the
    construction of a Reconciliation Place in Fort Pierre, South
    Dakota.

                       TITLE VIII--ERIE CANALWAY NATIONAL

                               HERITAGE CORRIDOR

          The conference agreement includes an Act to designate the
    Erie Canalway a National Heritage Corridor.

                    TITLE IX--LAW ENFORCEMENT PAY EQUITY ACT

          The conference agreement includes a new provision
    regarding pay comparability for the United States Park Police,
    the Uniformed Division of the United States Secret Service, and
    the D.C. Metropolitan Police Department.

              TITLE X--DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

                           administrative provisions

          Language is included which makes technical changes to the
    fiscal year 2000 Appropriations Act regarding the Millennial
    Housing Commission.
          Language is included which codifies the multiplier the
    Federal Home Loan Mortgage Corporation can use for reaching the
    multi-family affordable housing goal.
          Language is included to allow the conversion of a HUD
    rental housing project in Toledo, Ohio to condominiums as long
    as the housing remains affordable, either as rental or
    homeownership housing, to low- and very-low income families
    that currently reside in the apartments.
          Language has been included which directs the General
    Accounting Office to study and report on financial standards
    related to the Federal Home Loan Bank System.

                      TITLE XI--DEPARTMENT OF THE TREASURY

                            administrative provision

          Language is included which honors the Navajo Code Talkers
    of World War II by authorizing the striking and presentation of
    a gold medal of appropriate design to each of the original 29
    Navajo Code Talkers or a surviving family member, striking and
    presentation of a silver medal to each man or surviving family
    member qualified as a Navajo Code Talker, and by further
    authorizing the striking of duplicate medals in bronze for sale
    to the general public.

                   TITLE XII--ENVIRONMENTAL PROTECTION AGENCY

                           administrative provisions

          Language is included authorizing the aboveground storage
    tank grant program.

           TITLE XIII--NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

                            administrative provision

          Language is included which permits NASA to use certain
    proceeds from the sale of timber on lands associated with the
    John C. Stennis Space Center for the purchase of additional
    property to establish education and visitor programs and
    facilities, and for wetlands mitigation.

               TITLE XIV--CERTAIN ALASKAN CRUISE SHIP OPERATIONS

          Language is included which regulates the discharge of
    sewage and wastewater from cruise ships in certain waters in
    and adjacent to the State of Alaska.

                         TITLE XV--LIFE ACT AMENDMENTS

          The conference agreement includes a new title, titled the
    LIFE Act Amendments of 2000.

         TITLE XVI--IMPROVING LITERACY THROUGH FAMILY LITERACY PROJECTS

          The conference agreement includes the Literacy Involves
    Families Together Act of 2000.

                   TITLE XVII--CHILDREN'S INTERNET PROTECTION

          The conference agreement includes the Children's Internet
    Protection Act of 2000.

                  COMMODITY FUTURES MODERNIZATION ACT OF 2000

          The conference agreement would enact the provisions of
    H.R. 5660, as introduced on December 14, 2000. The text of that
    bill follows:

     A BILL To reauthorize and amend the Commodity Exchange Act to promote
       legal certainty, enhance competition, and reduce systemic risk in
      markets for futures and over-the-counter derivatives, and for other
                                    purposes

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

    SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

        (a) Short Title.--This Act may be cited as the ``Commodity
    Futures Modernization Act of 2000''.
        (b) Table of Contents.--The table of contents of this Act
    is as follows:

    Sec. 1. Short title; table of contents.
    Sec. 2. Purposes.

                    TITLE I--COMMODITY FUTURES MODERNIZATION

    Sec. 101. Definitions.
    Sec. 102. Agreements, contracts, and transactions in foreign currency,
              government securities, and certain other commodities.
    Sec. 103. Legal certainty for excluded derivative transactions.
    Sec. 104. Excluded electronic trading facilities.
    Sec. 105. Hybrid instruments; swap transactions.
    Sec. 106. Transactions in exempt commodities.
    Sec. 107. Application of commodity futures laws.
    Sec. 108. Protection of the public interest.
    Sec. 109. Prohibited transactions.
    Sec. 110. Designation of boards of trade as contract markets.
    Sec. 111. Derivatives transaction execution facilities.
    Sec. 112. Derivatives clearing.
    Sec. 113. Common provisions applicable to registered entities.
    Sec. 114. Exempt boards of trade.
    Sec. 115. Suspension or revocation of designation as contract market.
    Sec. 116. Authorization of appropriations.
    Sec. 117. Preemption.
    Sec. 118. Predispute resolution agreements for institutional customers.
    Sec. 119. Consideration of costs and benefits and antitrust laws.
    Sec. 120. Contract enforcement between eligible counterparties.
    Sec. 121. Special procedures to encourage and facilitate bona fide
              hedging by agricultural producers.
    Sec. 122. Rule of construction.
    Sec. 123. Technical and conforming amendments.
    Sec. 124. Privacy.
    Sec. 125. Report to Congress.
    Sec. 126. International activities of the Commodity Futures Trading
              Commission.

          TITLE II--COORDINATED REGULATION OF SECURITY FUTURES PRODUCTS

                      Subtitle A--Securities Law Amendments

    Sec. 201. Definitions under the Securities Exchange Act of 1934.
    Sec. 202. Regulatory relief for markets trading security futures
              products.
    Sec. 203. Regulatory relief for intermediaries trading security futures
              products.
    Sec. 204. Special provisions for interagency cooperation.
    Sec. 205. Maintenance of market integrity for security futures products.
    Sec. 206. Special provisions for the trading of security futures
              products.
    Sec. 207. Clearance and settlement.
    Sec. 208. Amendments relating to registration and disclosure issues
              under the Securities Act of 1933 and the Securities Exchange
              Act of 1934.
    Sec. 209. Amendments to the Investment Company Act of 1940 and the
              Investment Advisers Act of 1940.
    Sec. 210. Preemption of State laws.

              Subtitle B--Amendments to the Commodity Exchange Act

    Sec. 251. Jurisdiction of Securities and Exchange Commission; other
              provisions.
    Sec. 252. Application of the Commodity Exchange Act to national
              securities exchanges and national securities associations that
              trade security futures.
    Sec. 253. Notification of investigations and enforcement actions.

                 TITLE III--LEGAL CERTAINTY FOR SWAP AGREEMENTS

    Sec. 301. Swap agreement.
    Sec. 302. Amendments to the Securities Act of 1933.
    Sec. 303. Amendments to the Securities Exchange Act of 1934.
    Sec. 304. Savings provision.

              TITLE IV--REGULATORY RESPONSIBILITY FOR BANK PRODUCTS

    Sec. 401. Short title.
    Sec. 402. Definitions.
    Sec. 403. Exclusion of identified banking products commonly offered on
              or before December 5, 2000.
    Sec. 404. Exclusion of certain identified banking products offered by
              banks after December 5, 2000.
    Sec. 405. Exclusion of certain other identified banking products.
    Sec. 406. Administration of the predominance test.
    Sec. 407. Exclusion of covered swap agreements.
    Sec. 408. Contract enforcement.

    SEC. 2. PURPOSES.

        The purposes of this Act are--
                (1) to reauthorize the appropriation for the
            Commodity Futures Trading Commission;
                (2) to streamline and eliminate unnecessary
            regulation for the commodity futures exchanges and
            other entities regulated under the Commodity Exchange
            Act;
                (3) to transform the role of the Commodity Futures
            Trading Commission to oversight of the futures markets;
                (4) to provide a statutory and regulatory framework
            for allowing the trading of futures on securities;
                (5) to clarify the jurisdiction of the Commodity
            Futures Trading Commission over certain retail foreign
            exchange transactions and bucket shops that may not be
            otherwise regulated;
                (6) to promote innovation for futures and
            derivatives and to reduce systemic risk by enhancing
            legal certainty in the markets for certain futures and
            derivatives transactions;
                (7) to reduce systemic risk and provide greater
            stability to markets during times of market disorder by
            allowing the clearing of transactions in over-the-
            counter derivatives through appropriately regulated
            clearing organizations; and
                (8) to enhance the competitive position of United
            States financial institutions and financial markets.

                    TITLE I--COMMODITY FUTURES MODERNIZATION

    SEC. 101. DEFINITIONS.

        Section 1a of the Commodity Exchange Act (7 U.S.C. 1a) is
    amended--
                (1) by redesignating paragraphs (1) through (7),
            (8) through (12), (13) through (15), and (16) as
            paragraphs (2) through (8), (16) through (20), (22)
            through (24), and (28), respectively;
                (2) by inserting before paragraph (2) (as
            redesignated by paragraph (1)) the following:
                ``(1) Alternative trading system.--The term
            `alternative trading system' means an organization,
            association, or group of persons that--
                        ``(A) is registered as a broker or dealer
                    pursuant to section 15(b) of the Securities
                    Exchange Act of 1934 (except paragraph (11)
                    thereof);
                        ``(B) performs the functions commonly
                    performed by an exchange (as defined in section
                    3(a)(1) of the Securities Exchange Act of
                    1934);
                        ``(C) does not--
                                ``(i) set rules governing the
                            conduct of subscribers other than the
                            conduct of such subscribers' trading on
                            the alternative trading system; or
                                ``(ii) discipline subscribers other
                            than by exclusion from trading; and
                        ``(D) is exempt from the definition of the
                    term `exchange' under such section 3(a)(1) by
                    rule or regulation of the Securities and
                    Exchange Commission on terms that require
                    compliance with regulations of its trading
                    functions.'';
                (3) by striking paragraph (2) (as redesignated by
            paragraph (1)) and inserting the following:
                ``(2) Board of trade.--The term `board of trade'
            means any organized exchange or other trading
            facility.'';
                (4) by inserting after paragraph (8) (as
            redesignated by paragraph (1)) the following:
                ``(9) Derivatives clearing organization.--
                        ``(A) In general.--The term `derivatives
                    clearing organization' means a clearinghouse,
                    clearing association, clearing corporation, or
                    similar entity, facility, system, or
                    organization that, with respect to an
                    agreement, contract, or transaction--
                                ``(i) enables each party to the
                            agreement, contract, or transaction to
                            substitute, through novation or
                            otherwise, the credit of the
                            derivatives clearing organization for
                            the credit of the parties;
                                ``(ii) arranges or provides, on a
                            multilateral basis, for the settlement
                            or netting of obligations resulting
                            from such agreements, contracts, or
                            transactions executed by participants
                            in the derivatives clearing
                            organization; or
                                ``(iii) otherwise provides clearing
                            services or arrangements that mutualize
                            or transfer among participants in the
                            derivatives clearing organization the
                            credit risk arising from such
                            agreements, contracts, or transactions
                            executed by the participants.
                        ``(B) Exclusions.--The term `derivatives
                    clearing organization' does not include an
                    entity, facility, system, or organization
                    solely because it arranges or provides for--
                                ``(i) settlement, netting, or
                            novation of obligations resulting from
                            agreements, contracts, or transactions,
                            on a bilateral basis and without a
                            central counterparty;
                                ``(ii) settlement or netting of
                            cash payments through an interbank
                            payment system; or
                                ``(iii) settlement, netting, or
                            novation of obligations resulting from
                            a sale of a commodity in a transaction
                            in the spot market for the commodity.
                ``(10) Electronic trading facility.--The term
            `electronic trading facility' means a trading facility
            that--
                        ``(A) operates by means of an electronic or
                    telecommunications network; and
                        ``(B) maintains an automated audit trail of
                    bids, offers, and the matching of orders or the
                    execution of transactions on the facility.
                ``(11) Eligible commercial entity.--The term
            `eligible commercial entity' means, with respect to an
            agreement, contract or transaction in a commodity--
                        ``(A) an eligible contract participant
                    described in clause (i), (ii), (v), (vii),
                    (viii), or (ix) of paragraph (12)(A) that, in
                    connection with its business--
                                ``(i) has a demonstrable ability,
                            directly or through separate
                            contractual arrangements, to make or
                            take delivery of the underlying
                            commodity;
                                ``(ii) incurs risks, in addition to
                            price risk, related to the commodity;
                            or
                                ``(iii) is a dealer that regularly
                            provides risk management or hedging
                            services to, or engages in market-
                            making activities with, the foregoing
                            entities involving transactions to
                            purchase or sell the commodity or
                            derivative agreements, contracts, or
                            transactions in the commodity;
                        ``(B) an eligible contract participant,
                    other than a natural person or an
                    instrumentality, department, or agency of a
                    State or local governmental entity, that--
                                ``(i) regularly enters into
                            transactions to purchase or sell the
                            commodity or derivative agreements,
                            contracts, or transactions in the
                            commodity; and
                                ``(ii) either--
                                        ``(I) in the case of a
                                    collective investment vehicle
                                    whose participants include
                                    persons other than--
                                                ``(aa) qualified
                                            eligible persons, as
                                            defined in Commission
                                            rule 4.7(a) (17 C.F.R.
                                            4.7(a));
                                                ``(bb) accredited
                                            investors, as defined
                                            in Regulation D of the
                                            Securities and Exchange
                                            Commission under the
                                            Securities Act of 1933
                                            (17 C.F.R. 230.501(a)),
                                            with total assets of
                                            $2,000,000; or
                                                ``(cc) qualified
                                            purchasers, as defined
                                            in section 2(a)(51)(A)
                                            of the Investment
                                            Company Act of 1940;
                                    in each case as in effect on
                                    the date of the enactment of
                                    the Commodity Futures
                                    Modernization Act of 2000, has,
                                    or is one of a group of
                                    vehicles under common control
                                    or management having in the
                                    aggregate, $1,000,000,000 in
                                    total assets; or
                                        ``(II) in the case of other
                                    persons, has, or is one of a
                                    group of persons under common
                                    control or management having in
                                    the aggregate, $100,000,000 in
                                    total assets; or
                        ``(C) such other persons as the Commission
                    shall determine appropriate and shall designate
                    by rule, regulation, or order.
                ``(12) Eligible contract participant.--The term
            `eligible contract participant' means--
                        ``(A) acting for its own account--
                                ``(i) a financial institution;
                                ``(ii) an insurance company that is
                            regulated by a State, or that is
                            regulated by a foreign government and
                            is subject to comparable regulation as
                            determined by the Commission, including
                            a regulated subsidiary or affiliate of
                            such an insurance company;
                                ``(iii) an investment company
                            subject to regulation under the
                            Investment Company Act of 1940 (15
                            U.S.C. 80a-1 et seq.) or a foreign
                            person performing a similar role or
                            function subject as such to foreign
                            regulation (regardless of whether each
                            investor in the investment company or
                            the foreign person is itself an
                            eligible contract participant);
                                ``(iv) a commodity pool that--
                                        ``(I) has total assets
                                    exceeding $5,000,000; and
                                        ``(II) is formed and
                                    operated by a person subject to
                                    regulation under this Act or a
                                    foreign person performing a
                                    similar role or function
                                    subject as such to foreign
                                    regulation (regardless of
                                    whether each investor in the
                                    commodity pool or the foreign
                                    person is itself an eligible
                                    contract participant);
                                ``(v) a corporation, partnership,
                            proprietorship, organization, trust, or
                            other entity--
                                        ``(I) that has total assets
                                    exceeding $10,000,000;
                                        ``(II) the obligations of
                                    which under an agreement,
                                    contract, or transaction are
                                    guaranteed or otherwise
                                    supported by a letter of credit
                                    or keepwell, support, or other
                                    agreement by an entity
                                    described in subclause (I), in
                                    clause (i), (ii), (iii), (iv),
                                    or (vii), or in subparagraph
                                    (C); or
                                        ``(III) that--
                                                ``(aa) has a net
                                            worth exceeding
                                            $1,000,000; and
                                                ``(bb) enters into
                                            an agreement, contract,
                                            or transaction in
                                            connection with the
                                            conduct of the entity's
                                            business or to manage
                                            the risk associated
                                            with an asset or
                                            liability owned or
                                            incurred or reasonably
                                            likely to be owned or
                                            incurred by the entity
                                            in the conduct of the
                                            entity's business;
                                ``(vi) an employee benefit plan
                            subject to the Employee Retirement
                            Income Security Act of 1974 (29 U.S.C.
                            1001 et seq.), a governmental employee
                            benefit plan, or a foreign person
                            performing a similar role or function
                            subject as such to foreign regulation--
                                        ``(I) that has total assets
                                    exceeding $5,000,000; or
                                        ``(II) the investment
                                    decisions of which are made
                                    by--
                                                ``(aa) an
                                            investment adviser or
                                            commodity trading
                                            advisor subject to
                                            regulation under the
                                            Investment Advisers Act
                                            of 1940 (15 U.S.C. 80b-
                                            1 et seq.) or this Act;
                                                ``(bb) a foreign
                                            person performing a
                                            similar role or
                                            function subject as
                                            such to foreign
                                            regulation;
                                                ``(cc) a financial
                                            institution; or
                                                ``(dd) an insurance
                                            company described in
                                            clause (ii), or a
                                            regulated subsidiary or
                                            affiliate of such an
                                            insurance company;
                                ``(vii)(I) a governmental entity
                            (including the United States, a State,
                            or a foreign government) or political
                            subdivision of a governmental entity;
                                ``(II) a multinational or
                            supranational government entity; or
                                ``(III) an instrumentality, agency,
                            or department of an entity described in
                            subclause (I) or (II);
                            except that such term does not include
                            an entity, instrumentality, agency, or
                            department referred to in subclause (I)
                            or (III) of this clause unless (aa) the
                            entity, instrumentality, agency, or
                            department is a person described in
                            clause (i), (ii), or (iii) of section
                            1a(11)(A); (bb) the entity,
                            instrumentality, agency, or department
                            owns and invests on a discretionary
                            basis $25,000,000 or more in
                            investments; or (cc) the agreement,
                            contract, or transaction is offered by,
                            and entered into with, an entity that
                            is listed in any of subclauses (I)
                            through (VI) of section 2(c)(2)(B)(ii);
                                ``(viii)(I) a broker or dealer
                            subject to regulation under the
                            Securities Exchange Act of 1934 (15
                            U.S.C. 78a et seq.) or a foreign person
                            performing a similar role or function
                            subject as such to foreign regulation,
                            except that, if the broker or dealer or
                            foreign person is a natural person or
                            proprietorship, the broker or dealer or
                            foreign person shall not be considered
                            to be an eligible contract participant
                            unless the broker or dealer or foreign
                            person also meets the requirements of
                            clause (v) or (xi);
                                ``(II) an associated person of a
                            registered broker or dealer concerning
                            the financial or securities activities
                            of which the registered person makes
                            and keeps records under section 15C(b)
                            or 17(h) of the Securities Exchange Act
                            of 1934 (15 U.S.C. 78o-5(b), 78q(h));
                                ``(III) an investment bank holding
                            company (as defined in section 17(i) of
                            the Securities Exchange Act of 1934 (15
                            U.S.C. 78q(i));
                                ``(ix) a futures commission
                            merchant subject to regulation under
                            this Act or a foreign person performing
                            a similar role or function subject as
                            such to foreign regulation, except
                            that, if the futures commission
                            merchant or foreign person is a natural
                            person or proprietorship, the futures
                            commission merchant or foreign person
                            shall not be considered to be an
                            eligible contract participant unless
                            the futures commission merchant or
                            foreign person also meets the
                            requirements of clause (v) or (xi);
                                ``(x) a floor broker or floor
                            trader subject to regulation under this
                            Act in connection with any transaction
                            that takes place on or through the
                            facilities of a registered entity or an
                            exempt board of trade, or any affiliate
                            thereof, on which such person regularly
                            trades; or
                                ``(xi) an individual who has total
                            assets in an amount in excess of--
                                        ``(I) $10,000,000; or
                                        ``(II) $5,000,000 and who
                                    enters into the agreement,
                                    contract, or transaction in
                                    order to manage the risk
                                    associated with an asset owned
                                    or liability incurred, or
                                    reasonably likely to be owned
                                    or incurred, by the individual;
                        ``(B)(i) a person described in clause (i),
                    (ii), (iv), (v), (viii), (ix), or (x) of
                    subparagraph (A) or in subparagraph (C), acting
                    as broker or performing an equivalent agency
                    function on behalf of another person described
                    in subparagraph (A) or (C); or
                        ``(ii) an investment adviser subject to
                    regulation under the Investment Advisers Act of
                    1940, a commodity trading advisor subject to
                    regulation under this Act, a foreign person
                    performing a similar role or function subject
                    as such to foreign regulation, or a person
                    described in clause (i), (ii), (iv), (v),
                    (viii), (ix), or (x) of subparagraph (A) or in
                    subparagraph (C), in any such case acting as
                    investment manager or fiduciary (but excluding
                    a person acting as broker or performing an
                    equivalent agency function) for another person
                    described in subparagraph (A) or (C) and who is
                    authorized by such person to commit such person
                    to the transaction; or
                        ``(C) any other person that the Commission
                    determines to be eligible in light of the
                    financial or other qualifications of the
                    person.
                ``(13) Excluded commodity.--The term `excluded
            commodity' means--
                                ``(i) an interest rate, exchange
                            rate, currency, security, security
                            index, credit risk or measure, debt or
                            equity instrument, index or measure of
                            inflation, or other macroeconomic index
                            or measure;
                                ``(ii) any other rate,
                            differential, index, or measure of
                            economic or commercial risk, return, or
                            value that is--
                                        ``(I) not based in
                                    substantial part on the value
                                    of a narrow group of
                                    commodities not described in
                                    clause (i); or
                                        ``(II) based solely on 1 or
                                    more commodities that have no
                                    cash market;
                                ``(iii) any economic or commercial
                            index based on prices, rates, values,
                            or levels that are not within the
                            control of any party to the relevant
                            contract, agreement, or transaction; or
                                ``(iv) an occurrence, extent of an
                            occurrence, or contingency (other than
                            a change in the price, rate, value, or
                            level of a commodity not described in
                            clause (i)) that is--
                                        ``(I) beyond the control of
                                    the parties to the relevant
                                    contract, agreement, or
                                    transaction; and
                                        ``(II) associated with a
                                    financial, commercial, or
                                    economic consequence.
                ``(14) Exempt commodity.--The term `exempt
            commodity' means a commodity that is not an excluded
            commodity or an agricultural commodity.
                ``(15) Financial institution.--The term `financial
            institution' means--
                        ``(A) a corporation operating under the
                    fifth undesignated paragraph of section 25 of
                    the Federal Reserve Act (12 U.S.C. 603),
                    commonly known as `an agreement corporation';
                        ``(B) a corporation organized under section
                    25A of the Federal Reserve Act (12 U.S.C. 611
                    et seq.), commonly known as an `Edge Act
                    corporation';
                        ``(C) an institution that is regulated by
                    the Farm Credit Administration;
                        ``(D) a Federal credit union or State
                    credit union (as defined in section 101 of the
                    Federal Credit Union Act (12 U.S.C. 1752));
                        ``(E) a depository institution (as defined
                    in section 3 of the Federal Deposit Insurance
                    Act (12 U.S.C. 1813));
                        ``(F) a foreign bank or a branch or agency
                    of a foreign bank (each as defined in section
                    1(b) of the International Banking Act of 1978
                    (12 U.S.C. 3101(b)));
                        ``(G) any financial holding company (as
                    defined in section 2 of the Bank Holding
                    Company Act of 1956);
                        ``(H) a trust company; or
                        ``(I) a similarly regulated subsidiary or
                    affiliate of an entity described in any of
                    subparagraphs (A) through (H).'';
                (5) by inserting after paragraph (20) (as
            redesignated by paragraph (1)) the following:
                ``(21) Hybrid instrument.--The term `hybrid
            instrument' means a security having 1 or more payments
            indexed to the value, level, or rate of, or providing
            for the delivery of, 1 or more commodities.'';
                (6) by striking paragraph (24) (as redesignated by
            paragraph (1)) and inserting the following:
                ``(24) Member of a contract market; member of a
            derivatives transaction execution facility.--The term
            `member' means, with respect to a contract market or
            derivatives transaction execution facility, an
            individual, association, partnership, corporation, or
            trust--
                        ``(A) owning or holding membership in, or
                    admitted to membership representation on, the
                    contract market or derivatives transaction
                    execution facility; or
                        ``(B) having trading privileges on the
                    contract market or derivatives transaction
                    execution facility.
                ``(25) Narrow-based security index.--
                        ``(A) The term `narrow-based security
                    index' means an index--
                                ``(i) that has 9 or fewer component
                            securities;
                                ``(ii) in which a component
                            security comprises more than 30 percent
                            of the index's weighting;
                                ``(iii) in which the 5 highest
                            weighted component securities in the
                            aggregate comprise more than 60 percent
                            of the index's weighting; or
                                ``(iv) in which the lowest weighted
                            component securities comprising, in the
                            aggregate, 25 percent of the index's
                            weighting have an aggregate dollar
                            value of average daily trading volume
                            of less than $50,000,000 (or in the
                            case of an index with 15 or more
                            component securities, $30,000,000),
                            except that if there are two or more
                            securities with equal weighting that
                            could be included in the calculation of
                            the lowest weighted component
                            securities comprising, in the
                            aggregate, 25 percent of the index's
                            weighting, such securities shall be
                            ranked from lowest to highest dollar
                            value of average daily trading volume
                            and shall be included in the
                            calculation based on their ranking
                            starting with the lowest ranked
                            security.
                        ``(B) Notwithstanding subparagraph (A), an
                    index is not a narrow-based security index if--
                                ``(i)(I) it has at least 9
                            component securities;
                                ``(II) no component security
                            comprises more than 30 percent of the
                            index's weighting; and
                                ``(III) each component security
                            is--
                                        ``(aa) registered pursuant
                                    to section 12 of the Securities
                                    Exchange Act of 1934;
                                        ``(bb) 1 of 750 securities
                                    with the largest market
                                    capitalization; and
                                        ``(cc) 1 of 675 securities
                                    with the largest dollar value
                                    of average daily trading
                                    volume;
                                ``(ii) a board of trade was
                            designated as a contract market by the
                            Commodity Futures Trading Commission
                            with respect to a contract of sale for
                            future delivery on the index, before
                            the date of enactment of the Commodity
                            Futures Modernization Act of 2000;
                                ``(iii)(I) a contract of sale for
                            future delivery on the index traded on
                            a designated contract market or
                            registered derivatives transaction
                            execution facility for at least 30 days
                            as a contract of sale for future
                            delivery on an index that was not a
                            narrow-based security index; and
                                ``(II) it has been a narrow-based
                            security index for no more than 45
                            business days over 3 consecutive
                            calendar months;
                                ``(iv) a contract of sale for
                            future delivery on the index is traded
                            on or subject to the rules of a foreign
                            board of trade and meets such
                            requirements as are jointly established
                            by rule or regulation by the Commission
                            and the Securities and Exchange
                            Commission;
                                ``(v) no more than 18 months have
                            passed since the date of enactment of
                            the Commodity Futures Modernization Act
                            of 2000 and--
                                        ``(I) it is traded on or
                                    subject to the rules of a
                                    foreign board of trade;
                                        ``(II) the offer and sale
                                    in the United States of a
                                    contract of sale for future
                                    delivery on the index was
                                    authorized before the date of
                                    the enactment of the Commodity
                                    Futures Modernization Act of
                                    2000; and
                                        ``(III) the conditions of
                                    such authorization continue to
                                    be met; or
                                ``(vi) a contract of sale for
                            future delivery on the index is traded
                            on or subject to the rules of a board
                            of trade and meets such requirements as
                            are jointly established by rule,
                            regulation, or order by the Commission
                            and the Securities and Exchange
                            Commission.
                        ``(C) Within 1 year after the date of the
                    enactment of the Commodity Futures
                    Modernization Act of 2000, the Commission and
                    the Securities and Exchange Commission jointly
                    shall adopt rules or regulations that set forth
                    the requirements under subparagraph (B)(iv).
                        ``(D) An index that is a narrow-based
                    security index solely because it was a narrow-
                    based security index for more than 45 business
                    days over 3 consecutive calendar months
                    pursuant to clause (iii) of subparagraph (B)
                    shall not be a narrow-based security index for
                    the 3 following calendar months.
                        ``(E) For purposes of subparagraphs (A) and
                    (B)--
                                ``(i) the dollar value of average
                            daily trading volume and the market
                            capitalization shall be calculated as
                            of the preceding 6 full calendar
                            months; and
                                ``(ii) the Commission and the
                            Securities and Exchange Commission
                            shall, by rule or regulation, jointly
                            specify the method to be used to
                            determine market capitalization and
                            dollar value of average daily trading
                            volume.
                ``(26) Option.--The term `option' means an
            agreement, contract, or transaction that is of the
            character of, or is commonly known to the trade as, an
            `option', `privilege', `indemnity', `bid', `offer',
            `put', `call', `advance guaranty', or `decline
            guaranty'.
                ``(27) Organized exchange.--The term `organized
            exchange' means a trading facility that--
                        ``(A) permits trading--
                                ``(i) by or on behalf of a person
                            that is not an eligible contract
                            participant; or
                                ``(ii) by persons other than on a
                            principal-to-principal basis; or
                        ``(B) has adopted (directly or through
                    another nongovernmental entity) rules that--
                                ``(i) govern the conduct of
                            participants, other than rules that
                            govern the submission of orders or
                            execution of transactions on the
                            trading facility; and
                                ``(ii) include disciplinary
                            sanctions other than the exclusion of
                            participants from trading.''; and
                (7) by adding at the end the following:
                ``(29) Registered entity.--The term `registered
            entity' means--
                        ``(A) a board of trade designated as a
                    contract market under section 5;
                        ``(B) a derivatives transaction execution
                    facility registered under section 5a;
                        ``(C) a derivatives clearing organization
                    registered under section 5b; and
                        ``(D) a board of trade designated as a
                    contract market under section 5f.
                ``(30) Security.--The term `security' means a
            security as defined in section 2(a)(1) of the
            Securities Act of 1933 (15 U.S.C. 77b(a)(1)) or section
            3(a)(10) of the Securities Exchange Act of 1934 (15
            U.S.C. 78c(a)(10)).
                ``(31) Security future.--The term `security future'
            means a contract of sale for future delivery of a
            single security or of a narrow-based security index,
            including any interest therein or based on the value
            thereof, except an exempted security under section
            3(a)(12) of the Securities Exchange Act of 1934 as in
            effect on the date of enactment of the Futures Trading
            Act of 1982 (other than any municipal security as
            defined in section 3(a)(29) of the Securities Exchange
            Act of 1934 as in effect on the date of enactment of
            the Futures Trading Act of 1982). The term `security
            future' does not include any agreement, contract, or
            transaction excluded from this Act under section 2(c),
            2(d), 2(f), or 2(g) of this Act (as in effect on the
            date of the enactment of the Commodity Futures
            Modernization Act of 2000) or title IV of the Commodity
            Futures Modernization Act of 2000.
                ``(32) Security futures product.--The term
            `security futures product' means a security future or
            any put, call, straddle, option, or privilege on any
            security future.
                ``(33) Trading facility.--
                        ``(A) In general.--The term `trading
                    facility' means a person or group of persons
                    that constitutes, maintains, or provides a
                    physical or electronic facility or system in
                    which multiple participants have the ability to
                    execute or trade agreements, contracts, or
                    transactions by accepting bids and offers made
                    by other participants that are open to multiple
                    participants in the facility or system.
                        ``(B) Exclusions.--The term `trading
                    facility' does not include--
                                ``(i) a person or group of persons
                            solely because the person or group of
                            persons constitutes, maintains, or
                            provides an electronic facility or
                            system that enables participants to
                            negotiate the terms of and enter into
                            bilateral transactions as a result of
                            communications exchanged by the parties
                            and not from interaction of multiple
                            bids and multiple offers within a
                            predetermined, nondiscretionary
                            automated trade matching and execution
                            algorithm;
                                ``(ii) a government securities
                            dealer or government securities broker,
                            to the extent that the dealer or broker
                            executes or trades agreements,
                            contracts, or transactions in
                            government securities, or assists
                            persons in communicating about,
                            negotiating, entering into, executing,
                            or trading an agreement, contract, or
                            transaction in government securities
                            (as the terms `government securities
                            dealer', `government securities
                            broker', and `government securities'
                            are defined in section 3(a) of the
                            Securities Exchange Act of 1934 (15
                            U.S.C. 78c(a))); or
                                ``(iii) facilities on which bids
                            and offers, and acceptances of bids and
                            offers effected on the facility, are
                            not binding.
                    Any person, group of persons, dealer, broker,
                    or facility described in clause (i) or (ii) is
                    excluded from the meaning of the term `trading
                    facility' for the purposes of this Act without
                    any prior specific approval, certification, or
                    other action by the Commission.
                        ``(C) Special rule.--A person or group of
                    persons that would not otherwise constitute a
                    trading facility shall not be considered to be
                    a trading facility solely as a result of the
                    submission to a derivatives clearing
                    organization of transactions executed on or
                    through the person or group of persons.''.

    SEC. 102. AGREEMENTS, CONTRACTS, AND TRANSACTIONS IN FOREIGN CURRENCY,
                        GOVERNMENT SECURITIES, AND CERTAIN OTHER
                        COMMODITIES.

        Section 2 of the Commodity Exchange Act (7 U.S.C. 2, 2a, 3,
    4, 4a) is amended by adding at the end the following:
        ``(c) Agreements, Contracts, and Transactions in Foreign
    Currency, Government Securities, and Certain Other
    Commodities.--
                ``(1) In general.--Except as provided in paragraph
            (2), nothing in this Act (other than section 5a (to the
            extent provided in section 5a(g)), 5b, 5d, or
            12(e)(2)(B)) governs or applies to an agreement,
            contract, or transaction in--
                        ``(A) foreign currency;
                        ``(B) government securities;
                        ``(C) security warrants;
                        ``(D) security rights;
                        ``(E) resales of installment loan
                    contracts;
                        ``(F) repurchase transactions in an
                    excluded commodity; or
                        ``(G) mortgages or mortgage purchase
                    commitments.
                ``(2) Commission jurisdiction.--
                        ``(A) Agreements, contracts, and
                    transactions traded on an organized exchange.--
                    This Act applies to, and the Commission shall
                    have jurisdiction over, an agreement, contract,
                    or transaction described in paragraph (1) that
                    is--
                                ``(i) a contract of sale of a
                            commodity for future delivery (or an
                            option on such a contract), or an
                            option on a commodity (other than
                            foreign currency or a security or a
                            group or index of securities), that is
                            executed or traded on an organized
                            exchange; or
                                ``(ii) an option on foreign
                            currency executed or traded on an
                            organized exchange that is not a
                            national securities exchange registered
                            pursuant to section 6(a) of the
                            Securities Exchange Act of 1934.
                        ``(B) Agreements, contracts, and
                    transactions in retail foreign currency.--This
                    Act applies to, and the Commission shall have
                    jurisdiction over, an agreement, contract, or
                    transaction in foreign currency that--
                                ``(i) is a contract of sale of a
                            commodity for future delivery (or an
                            option on such a contract) or an option
                            (other than an option executed or
                            traded on a national securities
                            exchange registered pursuant to section
                            6(a) of the Securities Exchange Act of
                            1934); and
                                ``(ii) is offered to, or entered
                            into with, a person that is not an
                            eligible contract participant, unless
                            the counterparty, or the person
                            offering to be the counterparty, of the
                            person is--
                                        ``(I) a financial
                                    institution;
                                        ``(II) a broker or dealer
                                    registered under section 15(b)
                                    or 15C of the Securities
                                    Exchange Act of 1934 (15 U.S.C.
                                    78o(b), 78o-5) or a futures
                                    commission merchant registered
                                    under this Act;
                                        ``(III) an associated
                                    person of a broker or dealer
                                    registered under section 15(b)
                                    or 15C of the Securities
                                    Exchange Act of 1934 (15 U.S.C.
                                    78o(b), 78o-5), or an
                                    affiliated person of a futures
                                    commission merchant registered
                                    under this Act, concerning the
                                    financial or securities
                                    activities of which the
                                    registered person makes and
                                    keeps records under section
                                    15C(b) or 17(h) of the
                                    Securities Exchange Act of 1934
                                    (15 U.S.C. 78o-5(b), 78q(h)) or
                                    section 4f(c)(2)(B) of this
                                    Act;
                                        ``(IV) an insurance company
                                    described in section
                                    1a(12)(A)(ii) of this Act, or a
                                    regulated subsidiary or
                                    affiliate of such an insurance
                                    company;
                                        ``(V) a financial holding
                                    company (as defined in section
                                    2 of the Bank Holding Company
                                    Act of 1956); or
                                        ``(VI) an investment bank
                                    holding company (as defined in
                                    section 17(i) of the Securities
                                    Exchange Act of 1934).
                        ``(C) Notwithstanding subclauses (II) and
                    (III) of subparagraph (B)(ii), agreements,
                    contracts, or transactions described in
                    subparagraph (B) shall be subject to sections
                    4b, 4c(b), 6(c) and 6(d) (to the extent that
                    sections 6(c) and 6(d) prohibit manipulation of
                    the market price of any commodity, in
                    interstate commerce, or for future delivery on
                    or subject to the rules of any market), 6c, 6d,
                    and 8(a) if they are entered into by a futures
                    commission merchant or an affiliate of a
                    futures commission merchant that is not also an
                    entity described in subparagraph (B)(ii) of
                    this paragraph.''.

    SEC. 103. LEGAL CERTAINTY FOR EXCLUDED DERIVATIVE TRANSACTIONS.

        Section 2 of the Commodity Exchange Act (7 U.S.C. 2, 2a, 3,
    4, 4a) is further amended by adding at the end the following:
        ``(d) Excluded Derivative Transactions.--
                ``(1) In general.--Nothing in this Act (other than
            section 5b or 12(e)(2)(B)) governs or applies to an
            agreement, contract, or transaction in an excluded
            commodity if--
                        ``(A) the agreement, contract, or
                    transaction is entered into only between
                    persons that are eligible contract participants
                    at the time at which the persons enter into the
                    agreement, contract, or transaction; and
                        ``(B) the agreement, contract, or
                    transaction is not executed or traded on a
                    trading facility.
                ``(2) Electronic trading facility exclusion.--
            Nothing in this Act (other than section 5a (to the
            extent provided in section 5a(g)), 5b, 5d, or
            12(e)(2)(B)) governs or applies to an agreement,
            contract, or transaction in an excluded commodity if--
                        ``(A) the agreement, contract, or
                    transaction is entered into on a principal-to-
                    principal basis between parties trading for
                    their own accounts or as described in section
                    1a(12)(B)(ii);
                        ``(B) the agreement, contract, or
                    transaction is entered into only between
                    persons that are eligible contract participants
                    described in subparagraph (A), (B)(ii), or (C)
                    of section 1a(12)) at the time at which the
                    persons enter into the agreement, contract, or
                    transaction; and
                        ``(C) the agreement, contract, or
                    transaction is executed or traded on an
                    electronic trading facility.''.

    SEC. 104. EXCLUDED ELECTRONIC TRADING FACILITIES.

        Section 2 of the Commodity Exchange Act (7 U.S.C. 2, 2a, 3,
    4, 4a) is further amended by adding at the end the following:
        ``(e) Excluded Electronic Trading Facilities.--
                ``(1) In general.--Nothing in this Act (other than
            section 12(e)(2)(B)) governs or is applicable to an
            electronic trading facility that limits transactions
            authorized to be conducted on its facilities to those
            satisfying the requirements of section 2(d)(2), 2(g),
            or 2(h)(3).
                ``(2) Effect on authority to establish and
            operate.--Nothing in this Act shall prohibit a board of
            trade designated by the Commission as a contract market
            or derivatives transaction execution facility, or
            operating as an exempt board of trade from establishing
            and operating an electronic trading facility excluded
            under this Act pursuant to paragraph (1).
                ``(3) Effect on transactions.--No failure by an
            electronic trading facility to limit transactions as
            required by paragraph (1) of this subsection or to
            comply with section 2(h)(5) shall in itself affect the
            legality, validity, or enforceability of an agreement,
            contract, or transaction entered into or traded on the
            electronic trading facility or cause a participant on
            the system to be in violation of this Act.
                ``(4) Special rule.--A person or group of persons
            that would not otherwise constitute a trading facility
            shall not be considered to be a trading facility solely
            as a result of the submission to a derivatives clearing
            organization of transactions executed on or through the
            person or group of persons.''.

    SEC. 105. HYBRID INSTRUMENTS; SWAP TRANSACTIONS.

        (a) Hybrid Instruments.--Section 2 of the Commodity
    Exchange Act (7 U.S.C. 2, 2a, 3, 4, 4a) is further amended by
    adding at the end the following:
        ``(f) Exclusion for Qualifying Hybrid Instruments.--
                ``(1) In general.--Nothing in this Act (other than
            section 12(e)(2)(B)) governs or is applicable to a
            hybrid instrument that is predominantly a security.
                ``(2) Predominance.--A hybrid instrument shall be
            considered to be predominantly a security if--
                        ``(A) the issuer of the hybrid instrument
                    receives payment in full of the purchase price
                    of the hybrid instrument, substantially
                    contemporaneously with delivery of the hybrid
                    instrument;
                        ``(B) the purchaser or holder of the hybrid
                    instrument is not required to make any payment
                    to the issuer in addition to the purchase price
                    paid under subparagraph (A), whether as margin,
                    settlement payment, or otherwise, during the
                    life of the hybrid instrument or at maturity;
                        ``(C) the issuer of the hybrid instrument
                    is not subject by the terms of the instrument
                    to mark-to-market margining requirements; and
                        ``(D) the hybrid instrument is not marketed
                    as a contract of sale of a commodity for future
                    delivery (or option on such a contract) subject
                    to this Act.
                ``(3) Mark-to-market margining requirements.--For
            the purposes of paragraph (2)(C), mark-to-market
            margining requirements do not include the obligation of
            an issuer of a secured debt instrument to increase the
            amount of collateral held in pledge for the benefit of
            the purchaser of the secured debt instrument to secure
            the repayment obligations of the issuer under the
            secured debt instrument.''.
        (b) Swap Transactions.--Section 2 of the Commodity Exchange
    Act (7 U.S.C. 2, 2a, 3, 4, 4a) is further amended by adding at
    the end the following:
        ``(g) Excluded Swap Transactions.--No provision of this Act
    (other than section 5a (to the extent provided in section
    5a(g)), 5b, 5d, or 12(e)(2)) shall apply to or govern any
    agreement, contract, or transaction in a commodity other than
    an agricultural commodity if the agreement, contract, or
    transaction is--
                ``(1) entered into only between persons that are
            eligible contract participants at the time they enter
            into the agreement, contract, or transaction;
                ``(2) subject to individual negotiation by the
            parties; and
                ``(3) not executed or traded on a trading
            facility.''.
        (c) Study Regarding Retail Swaps.--
                (1) In general.--The Board of Governors of the
            Federal Reserve System, the Secretary of the Treasury,
            the Commodity Futures Trading Commission, and the
            Securities and Exchange Commission shall conduct a
            study of issues involving the offering of swap
            agreements to persons other than eligible contract
            participants (as defined in section 1a of the Commodity
            Exchange Act).
                (2) Matters to be addressed.--The study shall
            address--
                        (A) the potential uses of swap agreements
                    by persons other than eligible contract
                    participants;
                        (B) the extent to which financial
                    institutions are willing to offer swap
                    agreements to persons other than eligible
                    contract participants;
                        (C) the appropriate regulatory structure to
                    address customer protection issues that may
                    arise in connection with the offer of swap
                    agreements to persons other than eligible
                    contract participants; and
                        (D) such other relevant matters deemed
                    necessary or appropriate to address.
                (3) Report.--Before the end of the 1-year period
            beginning on the date of enactment of this Act, a
            report on the findings and conclusions of the study
            required by paragraph (1) shall be submitted to
            Congress, together with such recommendations for
            legislative action as are deemed necessary and
            appropriate.

    SEC. 106. TRANSACTIONS IN EXEMPT COMMODITIES.

        Section 2 of the Commodity Exchange Act (7 U.S.C. 2, 2a, 3,
    4, 4a) is further amended by adding at the end the following.
        ``(h) Legal Certainty for Certain Transactions in Exempt
    Commodities.--
                ``(1) Except as provided in paragraph (2), nothing
            in this Act shall apply to a contract, agreement or
            transaction in an exempt commodity which--
                        ``(A) is entered into solely between
                    persons that are eligible contract participants
                    at the time the persons enter into the
                    agreement, contract, or transaction; and
                        ``(B) is not entered into on a trading
                    facility.
                ``(2) An agreement, contract, or transaction
            described in paragraph (1) of this subsection shall be
            subject to--
                        ``(A) sections 5b and 12(e)(2)(B);
                        ``(B) sections 4b, 4o, 6(c), 6(d), 6c, 6d,
                    and 8a, and the regulations of the Commission
                    pursuant to section 4c(b) proscribing fraud in
                    connection with commodity option transactions,
                    to the extent the agreement, contract, or
                    transaction is not between eligible commercial
                    entities (unless 1 of the entities is an
                    instrumentality, department, or agency of a
                    State or local governmental entity) and would
                    otherwise be subject to such sections and
                    regulations; and
                        ``(C) sections 6(c), 6(d), 6c, 6d, 8a, and
                    9(a)(2), to the extent such sections prohibit
                    manipulation of the market price of any
                    commodity in interstate commerce and the
                    agreement, contract, or transaction would
                    otherwise be subject to such sections.
                ``(3) Except as provided in paragraph (4), nothing
            in this Act shall apply to an agreement, contract, or
            transaction in an exempt commodity which is--
                        ``(A) entered into on a principal-to-
                    principal basis solely between persons that are
                    eligible commercial entities at the time the
                    persons enter into the agreement, contract, or
                    transaction; and
                        ``(B) executed or traded on an electronic
                    trading facility.
                ``(4) An agreement, contract, or transaction
            described in paragraph (3) of this subsection shall be
            subject to--
                        ``(A) sections 5a (to the extent provided
                    in section 5a(g)), 5b, 5d, and 12(e)(2)(B);
                        ``(B) sections 4b and 4o and the
                    regulations of the Commission pursuant to
                    section 4c(b) proscribing fraud in connection
                    with commodity option transactions to the
                    extent the agreement, contract, or transaction
                    would otherwise be subject to such sections and
                    regulations;
                        ``(C) sections 6(c) and 9(a)(2), to the
                    extent such sections prohibit manipulation of
                    the market price of any commodity in interstate
                    commerce and to the extent the agreement,
                    contract, or transaction would otherwise be
                    subject to such sections; and
                        ``(D) such rules and regulations as the
                    Commission may prescribe if necessary to ensure
                    timely dissemination by the electronic trading
                    facility of price, trading volume, and other
                    trading data to the extent appropriate, if the
                    Commission determines that the electronic
                    trading facility performs a significant price
                    discovery function for transactions in the cash
                    market for the commodity underlying any
                    agreement, contract, or transaction executed or
                    traded on the electronic trading facility.
                ``(5) An electronic trading facility relying on the
            exemption provided in paragraph (3) shall--
                        ``(A) notify the Commission of its
                    intention to operate an electronic trading
                    facility in reliance on the exemption set forth
                    in paragraph (3), which notice shall include--
                                ``(i) the name and address of the
                            facility and a person designated to
                            receive communications from the
                            Commission;
                                ``(ii) the commodity categories
                            that the facility intends to list or
                            otherwise make available for trading on
                            the facility in reliance on the
                            exemption set forth in paragraph (3);
                                ``(iii) certifications that--
                                        ``(I) no executive officer
                                    or member of the governing
                                    board of, or any holder of a 10
                                    percent or greater equity
                                    interest in, the facility is a
                                    person described in any of
                                    subparagraphs (A) through (H)
                                    of section 8a(2);
                                        ``(II) the facility will
                                    comply with the conditions for
                                    exemption under this paragraph;
                                    and
                                        ``(III) the facility will
                                    notify the Commission of any
                                    material change in the
                                    information previously provided
                                    by the facility to the
                                    Commission pursuant to this
                                    paragraph; and
                                ``(iv) the identity of any
                            derivatives clearing organization to
                            which the facility transmits or intends
                            to transmit transaction data for the
                            purpose of facilitating the clearance
                            and settlement of transactions
                            conducted on the facility in reliance
                            on the exemption set forth in paragraph
                            (3);
                        ``(B)(i)(I) provide the Commission with
                    access to the facility's trading protocols and
                    electronic access to the facility with respect
                    to transactions conducted in reliance on the
                    exemption set forth in paragraph (3); or
                        ``(II) provide such reports to the
                    Commission regarding transactions executed on
                    the facility in reliance on the exemption set
                    forth in paragraph (3) as the Commission may
                    from time to time request to enable the
                    Commission to satisfy its obligations under
                    this Act;
                        ``(ii) maintain for 5 years, and make
                    available for inspection by the Commission upon
                    request, records of activities related to its
                    business as an electronic trading facility
                    exempt under paragraph (3), including--
                                ``(I) information relating to data
                            entry and transaction details
                            sufficient to enable the Commission to
                            reconstruct trading activity on the
                            facility conducted in reliance on the
                            exemption set forth in paragraph (3);
                            and
                                ``(II) the name and address of each
                            participant on the facility authorized
                            to enter into transactions in reliance
                            on the exemption set forth in paragraph
                            (3); and
                        ``(iii) upon special call by the
                    Commission, provide to the Commission, in a
                    form and manner and within the period specified
                    in the special call, such information related
                    to its business as an electronic trading
                    facility exempt under paragraph (3), including
                    information relating to data entry and
                    transaction details in respect of transactions
                    entered into in reliance on the exemption set
                    forth in paragraph (3), as the Commission may
                    determine appropriate--
                                ``(I) to enforce the provisions
                            specified in subparagraphs (B) and (C)
                            of paragraph (4);
                                ``(II) to evaluate a systemic
                            market event; or
                                ``(III) to obtain information
                            requested by a Federal financial
                            regulatory authority in order to enable
                            the regulator to fulfill its regulatory
                            or supervisory responsibilities;
                        ``(C)(i) upon receipt of any subpoena
                    issued by or on behalf of the Commission to any
                    foreign person who the Commission believes is
                    conducting or has conducted transactions in
                    reliance on the exemption set forth in
                    paragraph (3) on or through the electronic
                    trading facility relating to the transactions,
                    promptly notify the foreign person of, and
                    transmit to the foreign person, the subpoena in
                    a manner reasonable under the circumstances, or
                    as specified by the Commission; and
                        ``(ii) if the Commission has reason to
                    believe that a person has not timely complied
                    with a subpoena issued by or on behalf of the
                    Commission pursuant to clause (i), and the
                    Commission in writing has directed that a
                    facility relying on the exemption set forth in
                    paragraph (3) deny or limit further
                    transactions by the person, the facility shall
                    deny that person further trading access to the
                    facility or, as applicable, limit that person's
                    access to the facility for liquidation trading
                    only;
                        ``(D) comply with the requirements of this
                    paragraph applicable to the facility and
                    require that each participant, as a condition
                    of trading on the facility in reliance on the
                    exemption set forth in paragraph (3), agree to
                    comply with all applicable law;
                        ``(E) have a reasonable basis for believing
                    that participants authorized to conduct
                    transactions on the facility in reliance on the
                    exemption set forth in paragraph (3) are
                    eligible commercial entities; and
                        ``(F) not represent to any person that the
                    facility is registered with, or designated,
                    recognized, licensed or approved by the
                    Commission.
                ``(6) A person named in a subpoena referred to in
            paragraph (5)(C) that believes the person is or may be
            adversely affected or aggrieved by action taken by the
            Commission under this section, shall have the
            opportunity for a prompt hearing after the Commission
            acts under procedures that the Commission shall
            establish by rule, regulation, or order.''.

    SEC. 107. APPLICATION OF COMMODITY FUTURES LAWS.

        Section 2 of the Commodity Exchange Act (7 U.S.C. 2, 2a, 3,
    4, 4a) is further amended by adding at the end the following:
        ``(i) Application of Commodity Futures Laws.--
                ``(1) No provision of this Act shall be construed
            as implying or creating any presumption that--
                        ``(A) any agreement, contract, or
                    transaction that is excluded from this Act
                    under section 2(c), 2(d), 2(e), 2(f), or 2(g)
                    of this Act or title IV of the Commodity
                    Futures Modernization Act of 2000, or exempted
                    under section 2(h) or 4(c) of this Act; or
                        ``(B) any agreement, contract, or
                    transaction, not otherwise subject to this Act,
                    that is not so excluded or exempted,
            is or would otherwise be subject to this Act.
                ``(2) No provision of, or amendment made by, the
            Commodity Futures Modernization Act of 2000 shall be
            construed as conferring jurisdiction on the Commission
            with respect to any such agreement, contract, or
            transaction, except as expressly provided in section 5a
            of this Act (to the extent provided in section 5a(g) of
            this Act), 5b of this Act, or 5d of this Act.''.

    SEC. 108. PROTECTION OF THE PUBLIC INTEREST.

        The Commodity Exchange Act is amended by striking section 3
    (7 U.S.C. 5) and inserting the following:

    ``SEC. 3. FINDINGS AND PURPOSE.

        ``(a) Findings.--The transactions subject to this Act are
    entered into regularly in interstate and international commerce
    and are affected with a national public interest by providing a
    means for managing and assuming price risks, discovering
    prices, or disseminating pricing information through trading in
    liquid, fair and financially secure trading facilities.
        ``(b) Purpose.--It is the purpose of this Act to serve the
    public interests described in subsection (a) through a system
    of effective self-regulation of trading facilities, clearing
    systems, market participants and market professionals under the
    oversight of the Commission. To foster these public interests,
    it is further the purpose of this Act to deter and prevent
    price manipulation or any other disruptions to market
    integrity; to ensure the financial integrity of all
    transactions subject to this Act and the avoidance of systemic
    risk; to protect all market participants from fraudulent or
    other abusive sales practices and misuses of customer assets;
    and to promote responsible innovation and fair competition
    among boards of trade, other markets and market
    participants.''.

    SEC. 109. PROHIBITED TRANSACTIONS.

        Section 4c of the Commodity Exchange Act (7 U.S.C. 6c) is
    amended by striking ``Sec. 4c.'' and all that follows through
    subsection (a) and inserting the following:

    ``SEC. 4C. PROHIBITED TRANSACTIONS.

        ``(a) In General.--
                ``(1) Prohibition.--It shall be unlawful for any
            person to offer to enter into, enter into, or confirm
            the execution of a transaction described in paragraph
            (2) involving the purchase or sale of any commodity for
            future delivery (or any option on such a transaction or
            option on a commodity) if the transaction is used or
            may be used to--
                        ``(A) hedge any transaction in interstate
                    commerce in the commodity or the product or
                    byproduct of the commodity;
                        ``(B) determine the price basis of any such
                    transaction in interstate commerce in the
                    commodity; or
                        ``(C) deliver any such commodity sold,
                    shipped, or received in interstate commerce for
                    the execution of the transaction.
                ``(2) Transaction.--A transaction referred to in
            paragraph (1) is a transaction that--
                        ``(A)(i) is, is of the character of, or is
                    commonly known to the trade as, a `wash sale'
                    or `accommodation trade'; or
                        ``(ii) is a fictitious sale; or
                        ``(B) is used to cause any price to be
                    reported, registered, or recorded that is not a
                    true and bona fide price.''.

    SEC. 110. DESIGNATION OF BOARDS OF TRADE AS CONTRACT MARKETS.

        The Commodity Exchange Act is amended--
                (1) by redesignating section 5b (7 U.S.C. 7b) as
            section 5e; and
                (2) by striking sections 5 and 5a (7 U.S.C. 7, 7a)
            and inserting the following:

    ``SEC. 5. DESIGNATION OF BOARDS OF TRADE AS CONTRACT MARKETS.

        ``(a) Applications.--A board of trade applying to the
    Commission for designation as a contract market shall submit an
    application to the Commission that includes any relevant
    materials and records the Commission may require consistent
    with this Act.
        ``(b) Criteria for Designation.--
                ``(1) In general.--To be designated as a contract
            market, the board of trade shall demonstrate to the
            Commission that the board of trade meets the criteria
            specified in this subsection.
                ``(2) Prevention of market manipulation.--The board
            of trade shall have the capacity to prevent market
            manipulation through market surveillance, compliance,
            and enforcement practices and procedures, including
            methods for conducting real-time monitoring of trading
            and comprehensive and accurate trade reconstructions.
                ``(3) Fair and equitable trading.--The board of
            trade shall establish and enforce trading rules to
            ensure fair and equitable trading through the
            facilities of the contract market, and the capacity to
            detect, investigate, and discipline any person that
            violates the rules. The rules may authorize--
                        ``(A) transfer trades or office trades;
                        ``(B) an exchange of--
                                ``(i) futures in connection with a
                            cash commodity transaction;
                                ``(ii) futures for cash
                            commodities; or
                                ``(iii) futures for swaps; or
                        ``(C) a futures commission merchant, acting
                    as principal or agent, to enter into or confirm
                    the execution of a contract for the purchase or
                    sale of a commodity for future delivery if the
                    contract is reported, recorded, or cleared in
                    accordance with the rules of the contract
                    market or a derivatives clearing organization.
                ``(4) Trade execution facility.--The board of trade
            shall--
                        ``(A) establish and enforce rules defining,
                    or specifications detailing, the manner of
                    operation of the trade execution facility
                    maintained by the board of trade, including
                    rules or specifications describing the
                    operation of any electronic matching platform;
                    and
                        ``(B) demonstrate that the trade execution
                    facility operates in accordance with the rules
                    or specifications.
                ``(5) Financial integrity of transactions.--The
            board of trade shall establish and enforce rules and
            procedures for ensuring the financial integrity of
            transactions entered into by or through the facilities
            of the contract market, including the clearance and
            settlement of the transactions with a derivatives
            clearing organization.
                ``(6) Disciplinary procedures.--The board of trade
            shall establish and enforce disciplinary procedures
            that authorize the board of trade to discipline,
            suspend, or expel members or market participants that
            violate the rules of the board of trade, or similar
            methods for performing the same functions, including
            delegation of the functions to third parties.
                ``(7) Public access.--The board of trade shall
            provide the public with access to the rules,
            regulations, and contract specifications of the board
            of trade.
                ``(8) Ability to obtain information.--The board of
            trade shall establish and enforce rules that will allow
            the board of trade to obtain any necessary information
            to perform any of the functions described in this
            subsection, including the capacity to carry out such
            international information-sharing agreements as the
            Commission may require.
        ``(c) Existing Contract Markets.--A board of trade that is
    designated as a contract market on the date of the enactment of
    the Commodity Futures Modernization Act of 2000 shall be
    considered to be a designated contract market under this
    section.
        ``(d) Core Principles for Contract Markets.--
                ``(1) In general.--To maintain the designation of a
            board of trade as a contract market, the board of trade
            shall comply with the core principles specified in this
            subsection. The board of trade shall have reasonable
            discretion in establishing the manner in which it
            complies with the core principles.
                ``(2) Compliance with rules.--The board of trade
            shall monitor and enforce compliance with the rules of
            the contract market, including the terms and conditions
            of any contracts to be traded and any limitations on
            access to the contract market.
                ``(3) Contracts not readily subject to
            manipulation.--The board of trade shall list on the
            contract market only contracts that are not readily
            susceptible to manipulation.
                ``(4) Monitoring of trading.--The board of trade
            shall monitor trading to prevent manipulation, price
            distortion, and disruptions of the delivery or cash-
            settlement process.
                ``(5) Position limitations or accountability.--To
            reduce the potential threat of market manipulation or
            congestion, especially during trading in the delivery
            month, the board of trade shall adopt position
            limitations or position accountability for speculators,
            where necessary and appropriate.
                ``(6) Emergency authority.--The board of trade
            shall adopt rules to provide for the exercise of
            emergency authority, in consultation or cooperation
            with the Commission, where necessary and appropriate,
            including the authority to--
                        ``(A) liquidate or transfer open positions
                    in any contract;
                        ``(B) suspend or curtail trading in any
                    contract; and
                        ``(C) require market participants in any
                    contract to meet special margin requirements.
                ``(7) Availability of general information.--The
            board of trade shall make available to market
            authorities, market participants, and the public
            information concerning--
                        ``(A) the terms and conditions of the
                    contracts of the contract market; and
                        ``(B) the mechanisms for executing
                    transactions on or through the facilities of
                    the contract market.
                ``(8) Daily publication of trading information.--
            The board of trade shall make public daily information
            on settlement prices, volume, open interest, and
            opening and closing ranges for actively traded
            contracts on the contract market.
                ``(9) Execution of transactions.--The board of
            trade shall provide a competitive, open, and efficient
            market and mechanism for executing transactions.
                ``(10) Trade information.--The board of trade shall
            maintain rules and procedures to provide for the
            recording and safe storage of all identifying trade
            information in a manner that enables the contract
            market to use the information for purposes of assisting
            in the prevention of customer and market abuses and
            providing evidence of any violations of the rules of
            the contract market.
                ``(11) Financial integrity of contracts.--The board
            of trade shall establish and enforce rules providing
            for the financial integrity of any contracts traded on
            the contract market (including the clearance and
            settlement of the transactions with a derivatives
            clearing organization), and rules to ensure the
            financial integrity of any futures commission merchants
            and introducing brokers and the protection of customer
            funds.
                ``(12) Protection of market participants.--The
            board of trade shall establish and enforce rules to
            protect market participants from abusive practices
            committed by any party acting as an agent for the
            participants.
                ``(13) Dispute resolution.--The board of trade
            shall establish and enforce rules regarding and provide
            facilities for alternative dispute resolution as
            appropriate for market participants and any market
            intermediaries.
                ``(14) Governance fitness standards.--The board of
            trade shall establish and enforce appropriate fitness
            standards for directors, members of any disciplinary
            committee, members of the contract market, and any
            other persons with direct access to the facility
            (including any parties affiliated with any of the
            persons described in this paragraph).
                ``(15) Conflicts of interest.--The board of trade
            shall establish and enforce rules to minimize conflicts
            of interest in the decisionmaking process of the
            contract market and establish a process for resolving
            such conflicts of interest.
                ``(16) Composition of boards of mutually owned
            contract markets.--In the case of a mutually owned
            contract market, the board of trade shall ensure that
            the composition of the governing board reflects market
            participants.
                ``(17) Recordkeeping.--The board of trade shall
            maintain records of all activities related to the
            business of the contract market in a form and manner
            acceptable to the Commission for a period of 5 years.
                ``(18) Antitrust considerations.--Unless necessary
            or appropriate to achieve the purposes of this Act, the
            board of trade shall endeavor to avoid--
                        ``(A) adopting any rules or taking any
                    actions that result in any unreasonable
                    restraints of trade; or
                        ``(B) imposing any material anticompetitive
                    burden on trading on the contract market.
        ``(e) Current Agricultural Commodities.--
                ``(1) Subject to paragraph (2) of this subsection,
            a contract for purchase or sale for future delivery of
            an agricultural commodity enumerated in section 1a(4)
            that is available for trade on a contract market, as of
            the date of the enactment of this subsection, may be
            traded only on a contract market designated under this
            section.
                ``(2) In order to promote responsible economic or
            financial innovation and fair competition, the
            Commission, on application by any person, after notice
            and public comment and opportunity for hearing, may
            prescribe rules and regulations to provide for the
            offer and sale of contracts for future delivery or
            options on such contracts to be conducted on a
            derivatives transaction execution facility.''.

    SEC. 111. DERIVATIVES TRANSACTION EXECUTION FACILITIES.

        The Commodity Exchange Act (7 U.S.C. 1 et seq.) is amended
    by inserting after section 5 (as amended by section 110(2)) the
    following:

    ``SEC. 5A. DERIVATIVES TRANSACTION EXECUTION FACILITIES.

        ``(a) In General.--In lieu of compliance with the contract
    market designation requirements of sections 4(a) and 5, a board
    of trade may elect to operate as a registered derivatives
    transaction execution facility if the facility is--
                ``(1) designated as a contract market and meets the
            requirements of this section; or
                ``(2) registered as a derivatives transaction
            execution facility under subsection (c) of this
            section.
        ``(b) Requirements for Trading.--
                ``(1) In general.--A registered derivatives
            transaction execution facility under subsection (a) may
            trade any contract of sale of a commodity for future
            delivery (or option on such a contract) on or through
            the facility only by satisfying the requirements of
            this section.
                ``(2) Requirements for underlying commodities.--A
            registered derivatives transaction execution facility
            may trade any contract of sale of a commodity for
            future delivery (or option on such a contract) only
            if--
                        ``(A) the underlying commodity has a nearly
                    inexhaustible deliverable supply;
                        ``(B) the underlying commodity has a
                    deliverable supply that is sufficiently large
                    that the contract is highly unlikely to be
                    susceptible to the threat of manipulation;
                        ``(C) the underlying commodity has no cash
                    market;
                        ``(D)(i) the contract is a security futures
                    product, and (ii) the registered derivatives
                    transaction execution facility is a national
                    securities exchange registered under the
                    Securities Exchange Act of 1934;
                        ``(E) the Commission determines, based on
                    the market characteristics, surveillance
                    history, self-regulatory record, and capacity
                    of the facility that trading in the contract
                    (or option) is highly unlikely to be
                    susceptible to the threat of manipulation; or
                        ``(F) except as provided in section
                    5(e)(2), the underlying commodity is a
                    commodity other than an agricultural commodity
                    enumerated in section 1a(4), and trading access
                    to the facility is limited to eligible
                    commercial entities trading for their own
                    account.
                ``(3) Eligible traders.--To trade on a registered
            derivatives transaction execution facility, a person
            shall--
                        ``(A) be an eligible contract participant;
                    or
                        ``(B) be a person trading through a futures
                    commission merchant that--
                                ``(i) is registered with the
                            Commission;
                                ``(ii) is a member of a futures
                            self-regulatory organization or, if the
                            person trades only security futures
                            products on the facility, a national
                            securities association registered under
                            section 15A(a) of the Securities
                            Exchange Act of 1934;
                                ``(iii) is a clearing member of a
                            derivatives clearing organization; and
                                ``(iv) has net capital of at least
                            $20,000,000.
                ``(4) Trading by contract markets.--A board of
            trade that is designated as a contract market shall, to
            the extent that the contract market also operates a
            registered derivatives transaction execution facility--
                        ``(A) provide a physical location for the
                    contract market trading of the board of trade
                    that is separate from trading on the
                    derivatives transaction execution facility of
                    the board of trade; or
                        ``(B) if the board of trade uses the same
                    electronic trading system for trading on the
                    contract market and derivatives transaction
                    execution facility of the board of trade,
                    identify whether the electronic trading is
                    taking place on the contract market or the
                    derivatives transaction execution facility.
        ``(c) Criteria for Registration.--
                ``(1) In general.--To be registered as a registered
            derivatives transaction execution facility, the board
            of trade shall be required to demonstrate to the
            Commission only that the board of trade meets the
            criteria specified in subsection (b) and this
            subsection.
                ``(2) Deterrence of abuses.--The board of trade
            shall establish and enforce trading and participation
            rules that will deter abuses and has the capacity to
            detect, investigate, and enforce those rules, including
            means to--
                        ``(A) obtain information necessary to
                    perform the functions required under this
                    section; or
                        ``(B) use technological means to--
                                ``(i) provide market participants
                            with impartial access to the market;
                            and
                                ``(ii) capture information that may
                            be used in establishing whether rule
                            violations have occurred.
                ``(3) Trading procedures.--The board of trade shall
            establish and enforce rules or terms and conditions
            defining, or specifications detailing, trading
            procedures to be used in entering and executing orders
            traded on the facilities of the board of trade. The
            rules may authorize--
                        ``(A) transfer trades or office trades;
                        ``(B) an exchange of--
                                ``(i) futures in connection with a
                            cash commodity transaction;
                                ``(ii) futures for cash
                            commodities; or
                                ``(iii) futures for swaps; or
                        ``(C) a futures commission merchant, acting
                    as principal or agent, to enter into or confirm
                    the execution of a contract for the purchase or
                    sale of a commodity for future delivery if the
                    contract is reported, recorded, or cleared in
                    accordance with the rules of the registered
                    derivatives transaction execution facility or a
                    derivatives clearing organization.
                ``(4) Financial integrity of transactions.--The
            board of trade shall establish and enforce rules or
            terms and conditions providing for the financial
            integrity of transactions entered on or through the
            facilities of the board of trade, and rules or terms
            and conditions to ensure the financial integrity of any
            futures commission merchants and introducing brokers
            and the protection of customer funds.
        ``(d) Core Principles for Registered Derivatives
    Transaction Execution Facilities.--
                ``(1) In general.--To maintain the registration of
            a board of trade as a derivatives transaction execution
            facility, a board of trade shall comply with the core
            principles specified in this subsection. The board of
            trade shall have reasonable discretion in establishing
            the manner in which the board of trade complies with
            the core principles.
                ``(2) Compliance with rules.--The board of trade
            shall monitor and enforce the rules of the facility,
            including any terms and conditions of any contracts
            traded on or through the facility and any limitations
            on access to the facility.
                ``(3) Monitoring of trading.--The board of trade
            shall monitor trading in the contracts of the facility
            to ensure orderly trading in the contract and to
            maintain an orderly market while providing any
            necessary trading information to the Commission to
            allow the Commission to discharge the responsibilities
            of the Commission under the Act.
                ``(4) Disclosure of general information.--The board
            of trade shall disclose publicly and to the Commission
            information concerning--
                        ``(A) contract terms and conditions;
                        ``(B) trading conventions, mechanisms, and
                    practices;
                        ``(C) financial integrity protections; and
                        ``(D) other information relevant to
                    participation in trading on the facility.
                ``(5) Daily publication of trading information.--
            The board of trade shall make public daily information
            on settlement prices, volume, open interest, and
            opening and closing ranges for contracts traded on the
            facility if the Commission determines that the
            contracts perform a significant price discovery
            function for transactions in the cash market for the
            commodity underlying the contracts.
                ``(6) Fitness standards.--The board of trade shall
            establish and enforce appropriate fitness standards for
            directors, members of any disciplinary committee,
            members, and any other persons with direct access to
            the facility, including any parties affiliated with any
            of the persons described in this paragraph.
                ``(7) Conflicts of interest.--The board of trade
            shall establish and enforce rules to minimize conflicts
            of interest in the decision making process of the
            derivatives transaction execution facility and
            establish a process for resolving such conflicts of
            interest.
                ``(8) Recordkeeping.--The board of trade shall
            maintain records of all activities related to the
            business of the derivatives transaction execution
            facility in a form and manner acceptable to the
            Commission for a period of 5 years.
                ``(9) Antitrust considerations.--Unless necessary
            or appropriate to achieve the purposes of this Act, the
            board of trade shall endeavor to avoid--
                        ``(A) adopting any rules or taking any
                    actions that result in any unreasonable
                    restraint of trade; or
                        ``(B) imposing any material anticompetitive
                    burden on trading on the derivatives
                    transaction execution facility.
        ``(e) Use of Broker-Dealers, Depository Institutions, and
    Farm Credit System Institutions as Intermediaries.--
                ``(1) In general.--With respect to transactions
            other than transactions in security futures products, a
            registered derivatives transaction execution facility
            may by rule allow a broker-dealer, depository
            institution, or institution of the Farm Credit System
            that meets the requirements of paragraph (2) to--
                        ``(A) act as an intermediary in
                    transactions executed on the facility on behalf
                    of customers of the broker-dealer, depository
                    institution, or institution of the Farm Credit
                    System; and
                        ``(B) receive funds of customers to serve
                    as margin or security for the transactions.
                ``(2) Requirements.--The requirements referred to
            in paragraph (1) are that--
                        ``(A) the broker-dealer be in good standing
                    with the Securities and Exchange Commission, or
                    the depository institution or institution of
                    the Farm Credit System be in good standing with
                    Federal bank regulatory agencies (including the
                    Farm Credit Administration), as applicable; and
                        ``(B) if the broker-dealer, depository
                    institution, or institution of the Farm Credit
                    System carries or holds customer accounts or
                    funds for transactions on the derivatives
                    transaction execution facility for more than 1
                    business day, the broker-dealer, depository
                    institution, or institution of the Farm Credit
                    System is registered as a futures commission
                    merchant and is a member of a registered
                    futures association.
                ``(3) Implementation.--The Commission shall
            cooperate and coordinate with the Securities and
            Exchange Commission, the Secretary of the Treasury, and
            Federal banking regulatory agencies (including the Farm
            Credit Administration) in adopting rules and taking any
            other appropriate action to facilitate the
            implementation of this subsection.
        ``(f) Segregation of Customer Funds.--Not later than 180
    days after the date of the enactment of the Commodity Futures
    Modernization Act of 2000, consistent with regulations adopted
    by the Commission, a registered derivatives transaction
    execution facility may authorize a futures commission merchant
    to offer any customer of the futures commission merchant that
    is an eligible contract participant the right to not segregate
    the customer funds of the customer that are carried with the
    futures commission merchant for purposes of trading on or
    through the facilities of the registered derivatives
    transaction execution facility.
        ``(g) Election To Trade Excluded and Exempt Commodities.--
                ``(1) In general.--Notwithstanding subsection
            (b)(2) of this section, a board of trade that is or
            elects to become a registered derivatives transaction
            execution facility may trade on the facility any
            agreements, contracts, or transactions involving
            excluded or exempt commodities other than securities,
            except contracts of sale for future delivery of exempt
            securities under section 3(a)(12) of the Securities
            Exchange Act of 1934 as in effect on the date of
            enactment of the Futures Trading Act of 1982, that are
            otherwise excluded from this Act under section 2(c),
            2(d), or 2(g) of this Act, or exempt under section 2(h)
            of this Act.
                ``(2) Exclusive jurisdiction of the commission.--
            The Commission shall have exclusive jurisdiction over
            agreements, contracts, or transactions described in
            paragraph (1) to the extent that the agreements,
            contracts, or transactions are traded on a derivatives
            transaction execution facility.''.

    SEC. 112. DERIVATIVES CLEARING.

        (a) In General.--Subtitle A of title IV of the Federal
    Deposit Insurance Corporation Improvement Act of 1991 is
    amended--
                (1) by inserting before the section heading for
            section 401, the following new heading:

          ``CHAPTER 1--BILATERAL AND CLEARING ORGANIZATION NETTING'';

                (2) in section 402, by striking ``this subtitle''
            and inserting ``this chapter''; and
                (3) by inserting after section 407, the following
            new chapter:

                ``CHAPTER 2--MULTILATERAL CLEARING ORGANIZATIONS

    ``SEC. 408. DEFINITIONS.

        For purposes of this chapter, the following definitions
    shall apply:
                ``(1) Multilateral clearing organization.--The term
            `multilateral clearing organization' means a system
            utilized by more than 2 participants in which the
            bilateral credit exposures of participants arising from
            the transactions cleared are effectively eliminated and
            replaced by a system of guarantees, insurance, or
            mutualized risk of loss.
                ``(2) Over-the-counter derivative instrument.--The
            term `over-the-counter derivative instrument'
            includes--
                        ``(A) any agreement, contract, or
                    transaction, including the terms and conditions
                    incorporated by reference in any such
                    agreement, contract, or transaction, which is
                    an interest rate swap, option, or forward
                    agreement, including a rate floor, rate cap,
                    rate collar, cross-currency rate swap, basis
                    swap, and forward rate agreement; a same day-
                    tomorrow, tomorrow-next, forward, or other
                    foreign exchange or precious metals agreement;
                    a currency swap, option, or forward agreement;
                    an equity index or equity swap, option, or
                    forward agreement; a debt index or debt swap,
                    option, or forward agreement; a credit spread
                    or credit swap, option, or forward agreement; a
                    commodity index or commodity swap, option, or
                    forward agreement; and a weather swap, weather
                    derivative, or weather option;
                        ``(B) any agreement, contract or
                    transaction similar to any other agreement,
                    contract, or transaction referred to in this
                    clause that is presently, or in the future
                    becomes, regularly entered into by parties that
                    participate in swap transactions (including
                    terms and conditions incorporated by reference
                    in the agreement) and that is a forward, swap,
                    or option on 1 or more occurrences of any
                    event, rates, currencies, commodities, equity
                    securities or other equity instruments, debt
                    securities or other debt instruments, economic
                    or other indices or measures of economic or
                    other risk or value;
                        ``(C) any agreement, contract, or
                    transaction excluded from the Commodity
                    Exchange Act under section 2(c), 2(d), 2(f), or
                    2(g) of such Act, or exempted under section
                    2(h) or 4(c) of such Act; and
                        ``(D) any option to enter into any, or any
                    combination of, agreements, contracts or
                    transactions referred to in this subparagraph.
                ``(3) Other definitions.--The terms `insured State
            nonmember bank', `State member bank', and `affiliate'
            have the same meanings as in section 3 of the Federal
            Deposit Insurance Act.

    ``SEC. 409. MULTILATERAL CLEARING ORGANIZATIONS.

        ``(a) In General.--Except with respect to clearing
    organizations described in subsection (b), no person may
    operate a multilateral clearing organization for over-the-
    counter derivative instruments, or otherwise engage in
    activities that constitute such a multilateral clearing
    organization unless the person is a national bank, a State
    member bank, an insured State nonmember bank, an affiliate of a
    national bank, a State member bank, or an insured State
    nonmember bank, or a corporation chartered under section 25A of
    the Federal Reserve Act.
        ``(b) Clearing Organizations.--Subsection (a) shall not
    apply to any clearing organization that--
                ``(1) is registered as a clearing agency under the
            Securities Exchange Act of 1934;
                ``(2) is registered as a derivatives clearing
            organization under the Commodity Exchange Act; or
                ``(3) is supervised by a foreign financial
            regulator that the Comptroller of the Currency, the
            Board of Governors of the Federal Reserve System, the
            Federal Deposit Insurance Corporation, the Securities
            and Exchange Commission, or the Commodity Futures
            Trading Commission, as applicable, has determined
            satisfies appropriate standards.''.
        (b) Resolution of Clearing Banks.--The Federal Reserve Act
    (12 U.S.C. 221 et seq.) is amended by inserting after section
    9A the following new section:

    ``SEC. 9B. RESOLUTION OF CLEARING BANKS.

        ``(a) Conservatorship or Receivership.--
                ``(1) Appointment.--The Board may appoint a
            conservator or receiver to take possession and control
            of any uninsured State member bank which operates, or
            operates as, a multilateral clearing organization
            pursuant to section 409 of the Federal Deposit
            Insurance Corporation Improvement Act of 1991 to the
            same extent and in the same manner as the Comptroller
            of the Currency may appoint a conservator or receiver
            for a national bank.
                ``(2) Powers.--The conservator or receiver for an
            uninsured State member bank referred to in paragraph
            (1) shall exercise the same powers, functions, and
            duties, subject to the same limitations, as a
            conservator or receiver for a national bank.
        ``(b) Board Authority.--The Board shall have the same
    authority with respect to any conservator or receiver appointed
    under subsection (a), and the uninsured State member bank for
    which the conservator or receiver has been appointed, as the
    Comptroller of the Currency has with respect to a conservator
    or receiver for a national bank and the national bank for which
    the conservator or receiver has been appointed.
        ``(c) Bankruptcy Proceedings.--The Board (in the case of an
    uninsured State member bank which operates, or operates as,
    such a multilateral clearing organization) may direct a
    conservator or receiver appointed for the bank to file a
    petition pursuant to title 11, United States Code, in which
    case, title 11, United States Code, shall apply to the bank in
    lieu of otherwise applicable Federal or State insolvency
    law.''.
        (c) Technical and Conforming Amendments to Title 11, United
    States Code.--
                (1) Bankruptcy code debtors.--Section 109(b)(2) of
            title 11, United States Code, is amended by striking
            ``; or'' and inserting the following: ``, except that
            an uninsured State member bank, or a corporation
            organized under section 25A of the Federal Reserve Act,
            which operates, or operates as, a multilateral clearing
            organization pursuant to section 409 of the Federal
            Deposit Insurance Corporation Improvement Act of 1991
            may be a debtor if a petition is filed at the direction
            of the Board of Governors of the Federal Reserve
            System; or''.
                (2) Chapter 7 debtors.--Section 109(d) of title 11,
            United States Code, is amended to read as follows:
        ``(d) Only a railroad, a person that may be a debtor under
    chapter 7 of this title (except a stockbroker or a commodity
    broker), and an uninsured State member bank, or a corporation
    organized under section 25A of the Federal Reserve Act, which
    operates, or operates as, a multilateral clearing organization
    pursuant to section 409 of the Federal Deposit Insurance
    Corporation Improvement Act of 1991 may be a debtor under
    chapter 11 of this title.''.
                (3) Definition of financial institution.--Section
            101(22) of title 11, United States Code, is amended to
            read as follows:
                ``(22) the term `financial institution'--
                        ``(A) means--
                                ``(i) a Federal reserve bank or an
                            entity (domestic or foreign) that is a
                            commercial or savings bank, industrial
                            savings bank, savings and loan
                            association, trust company, or receiver
                            or conservator for such entity and,
                            when any such Federal reserve bank,
                            receiver, conservator, or entity is
                            acting as agent or custodian for a
                            customer in connection with a
                            securities contract, as defined in
                            section 741 of this title, the
                            customer; or
                                ``(ii) in connection with a
                            securities contract, as defined in
                            section 741 of this title, an
                            investment company registered under the
                            Investment Company Act of 1940; and
                        ``(B) includes any person described in
                    subparagraph (A) which operates, or operates
                    as, a multilateral clearing organization
                    pursuant to section 409 of the Federal Deposit
                    Insurance Corporation Improvement Act of
                    1991;''.
                (4) Definition of uninsured state member bank.--
            Section 101 of title 11, United States Code, is amended
            by inserting after paragraph (54) the following new
            paragraph--
        ``(54A) the term `uninsured State member bank' means a
    State member bank (as defined in section 3 of the Federal
    Deposit Insurance Act) the deposits of which are not insured by
    the Federal Deposit Insurance Corporation; and''.
        (5) Subchapter v of chapter 7.--
                        (A) In general.--Section 103 of title 11,
                    United States Code, is amended--
                                (i) by redesignating subsections
                            (e) through (i) as subsections (f)
                            through (j), respectively; and
                                (ii) by inserting after subsection
                            (d) the following new subsection:
        ``(e) Scope of Application.--Subchapter V of chapter 7 of
    this title shall apply only in a case under such chapter
    concerning the liquidation of an uninsured State member bank,
    or a corporation organized under section 25A of the Federal
    Reserve Act, which operates, or operates as, a multilateral
    clearing organization pursuant to section 409 of the Federal
    Deposit Insurance Corporation Improvement Act of 1991.''.
                        (B) Clearing bank liquidation.--Chapter 7
                    of title 11, United States Code, is amended by
                    adding at the end the following new subchapter:

                   ``SUBCHAPTER V--CLEARING BANK LIQUIDATION

    ``Sec. 781. Definitions

        ``For purposes of this subchapter, the following
    definitions shall apply:
                ``(1) Board.--The term `Board' means the Board of
            Governors of the Federal Reserve System.
                ``(2) Depository institution.--The term `depository
            institution' has the same meaning as in section 3 of
            the Federal Deposit Insurance Act.
                ``(3) Clearing bank.--The term `clearing bank'
            means an uninsured State member bank, or a corporation
            organized under section 25A of the Federal Reserve Act,
            which operates, or operates as, a multilateral clearing
            organization pursuant to section 409 of the Federal
            Deposit Insurance Corporation Improvement Act of 1991.

    ``Sec. 782. Selection of trustee

        ``(a) In General.--
                ``(1) Appointment.--Notwithstanding any other
            provision of this title, the conservator or receiver
            who files the petition shall be the trustee under this
            chapter, unless the Board designates an alternative
            trustee.
                ``(2) Successor.--The Board may designate a
            successor trustee if required.
        ``(b) Authority of Trustee.--Whenever the Board appoints or
    designates a trustee, chapter 3 and sections 704 and 705 of
    this title shall apply to the Board in the same way and to the
    same extent that they apply to a United States trustee.

    ``Sec. 783. Additional powers of trustee

        ``(a) Distribution of Property Not of the Estate.--The
    trustee under this subchapter has power to distribute property
    not of the estate, including distributions to customers that
    are mandated by subchapters III and IV of this chapter.
        ``(b) Disposition of Institution.--The trustee under this
    subchapter may, after notice and a hearing--
                ``(1) sell the clearing bank to a depository
            institution or consortium of depository institutions
            (which consortium may agree on the allocation of the
            clearing bank among the consortium);
                ``(2) merge the clearing bank with a depository
            institution;
                ``(3) transfer contracts to the same extent as
            could a receiver for a depository institution under
            paragraphs (9) and (10) of section 11(e) of the Federal
            Deposit Insurance Act;
                ``(4) transfer assets or liabilities to a
            depository institution;
                ``(5) transfer assets and liabilities to a bridge
            bank as provided in paragraphs (1), (3)(A), (5), (6),
            of section 11(n) of the Federal Deposit Insurance Act,
            paragraphs (9) through (13) of such section, and
            subparagraphs (A) through (H) and subparagraph (K) of
            paragraph (4) of such section 11(n), except that--
                        ``(A) the bridge bank to which such assets
                    or liabilities are transferred shall be treated
                    as a clearing bank for the purpose of this
                    subsection; and
                        ``(B) any references in any such provision
                    of law to the Federal Deposit Insurance
                    Corporation shall be construed to be references
                    to the appointing agency and that references to
                    deposit insurance shall be omitted.
        ``(c) Certain Transfers Included.--Any reference in this
    section to transfers of liabilities includes a ratable transfer
    of liabilities within a priority class.

    ``Sec. 784. Right to be heard

        ``The Board or a Federal reserve bank (in the case of a
    clearing bank that is a member of that bank) may raise and may
    appear and be heard on any issue in a case under this
    subchapter.''.
                (6) Definitions of clearing organization, contract
            market, and related definitions.--
                        (A) Section 761(2) of title 11, United
                    States Code, is amended to read as follows:
                ``(2) `clearing organization' means a derivatives
            clearing organization registered under the Act;''.
                        (B) Section 761(7) of title 11, United
                    States Code, is amended to read as follows:
                ``(7) `contract market' means a registered
            entity;''.
                        (C) Section 761(8) of title 11, United
                    States Code, is amended to read as follows:
                ``(8) `contract of sale', `commodity', `derivatives
            clearing organization', `future delivery', `board of
            trade', `registered entity', and `futures commission
            merchant' have the meanings assigned to those terms in
            the Act;''.
        (d) Clerical Amendment.--The table of sections for chapter
    7 of title 11, United States Code, is amended by adding at the
    end the following new items:

                   ``SUBCHAPTER V--CLEARING BANK LIQUIDATION

      ``Sec.
    ``781. Definitions.
    ``782. Selection of trustee.
    ``783. Additional powers of trustee.
    ``784. Right to be heard.''.

        (e) Resolution of Edge Act Corporations.--The 16th
    undesignated paragraph of section 25A of the Federal Reserve
    Act (12 U.S.C. 624) is amended to read as follows:
                ``(16) Appointment of receiver or conservator.--
                        ``(A) In general.--The Board may appoint a
                    conservator or receiver for a corporation
                    organized under the provisions of this section
                    to the same extent and in the same manner as
                    the Comptroller of the Currency may appoint a
                    conservator or receiver for a national bank,
                    and the conservator or receiver for such
                    corporation shall exercise the same powers,
                    functions, and duties, subject to the same
                    limitations, as a conservator or receiver for a
                    national bank.
                        ``(B) Equivalent authority.--The Board
                    shall have the same authority with respect to
                    any conservator or receiver appointed for a
                    corporation organized under the provisions of
                    this section under this paragraph and any such
                    corporation as the Comptroller of the Currency
                    has with respect to a conservator or receiver
                    of a national bank and the national bank for
                    which a conservator or receiver has been
                    appointed.
                        ``(C) Title 11 petitions.--The Board may
                    direct the conservator or receiver of a
                    corporation organized under the provisions of
                    this section to file a petition pursuant to
                    title 11, United States Code, in which case,
                    title 11, United States Code, shall apply to
                    the corporation in lieu of otherwise applicable
                    Federal or State insolvency law.''.
        (f) Derivatives Clearing Organizations.--The Commodity
    Exchange Act (7 U.S.C. 1 et seq.) is amended by inserting after
    section 5a, as added by section 111 of this Act, the following:

    ``SEC. 5B. DERIVATIVES CLEARING ORGANIZATIONS.

        ``(a) Registration Requirement.--It shall be unlawful for a
    derivatives clearing organization, unless registered with the
    Commission, directly or indirectly to make use of the mails or
    any means or instrumentality of interstate commerce to perform
    the functions of a derivatives clearing organization described
    in section 1a(9) of this Act with respect to a contract of sale
    of a commodity for future delivery (or option on such a
    contract) or option on a commodity, in each case unless the
    contract or option--
                ``(1) is excluded from this Act by section
            2(a)(1)(C)(i), 2(c), 2(d), 2(f), or 2(g) of this Act or
            title IV of the Commodity Futures Modernization Act of
            2000, or exempted under section 2(h) or 4(c) of this
            Act; or
                ``(2) is a security futures product cleared by a
            clearing agency registered under the Securities
            Exchange Act of 1934.
        ``(b) Voluntary Registration.--A derivatives clearing
    organization that clears agreements, contracts, or transactions
    excluded from this Act by section 2(c), 2(d), 2(f) or 2(g) of
    this Act or title IV of the Commodity Futures Modernization Act
    of 2000, or exempted under section 2(h) or 4(c) of this Act, or
    other over-the-counter derivative instruments (as defined in
    the Federal Deposit Insurance Corporation Improvement Act of
    1991) may register with the Commission as a derivatives
    clearing organization.
        ``(c) Registration of Derivatives Clearing Organizations.--
                ``(1) Application.--A person desiring to register
            as a derivatives clearing organization shall submit to
            the Commission an application in such form and
            containing such information as the Commission may
            require for the purpose of making the determinations
            required for approval under paragraph (2).
                ``(2) Core principles.--
                        ``(A) In general.--To be registered and to
                    maintain registration as a derivatives clearing
                    organization, an applicant shall demonstrate to
                    the Commission that the applicant complies with
                    the core principles specified in this
                    paragraph. The applicant shall have reasonable
                    discretion in establishing the manner in which
                    it complies with the core principles.
                        ``(B) Financial resources.--The applicant
                    shall demonstrate that the applicant has
                    adequate financial, operational, and managerial
                    resources to discharge the responsibilities of
                    a derivatives clearing organization.
                        ``(C) Participant and product
                    eligibility.--The applicant shall establish--
                                ``(i) appropriate admission and
                            continuing eligibility standards
                            (including appropriate minimum
                            financial requirements) for members of
                            and participants in the organization;
                            and
                                ``(ii) appropriate standards for
                            determining eligibility of agreements,
                            contracts, or transactions submitted to
                            the applicant.
                        ``(D) Risk management.--The applicant shall
                    have the ability to manage the risks associated
                    with discharging the responsibilities of a
                    derivatives clearing organization through the
                    use of appropriate tools and procedures.
                        ``(E) Settlement procedures.--The applicant
                    shall have the ability to--
                                ``(i) complete settlements on a
                            timely basis under varying
                            circumstances;
                                ``(ii) maintain an adequate record
                            of the flow of funds associated with
                            each transaction that the applicant
                            clears; and
                                ``(iii) comply with the terms and
                            conditions of any permitted netting or
                            offset arrangements with other clearing
                            organizations.
                        ``(F) Treatment of funds.--The applicant
                    shall have standards and procedures designed to
                    protect and ensure the safety of member and
                    participant funds.
                        ``(G) Default rules and procedures.--The
                    applicant shall have rules and procedures
                    designed to allow for efficient, fair, and safe
                    management of events when members or
                    participants become insolvent or otherwise
                    default on their obligations to the derivatives
                    clearing organization.
                        ``(H) Rule enforcement.--The applicant
                    shall--
                                ``(i) maintain adequate
                            arrangements and resources for the
                            effective monitoring and enforcement of
                            compliance with rules of the applicant
                            and for resolution of disputes; and
                                ``(ii) have the authority and
                            ability to discipline, limit, suspend,
                            or terminate a member's or
                            participant's activities for violations
                            of rules of the applicant.
                        ``(I) System safeguards.--The applicant
                    shall demonstrate that the applicant--
                                ``(i) has established and will
                            maintain a program of oversight and
                            risk analysis to ensure that the
                            automated systems of the applicant
                            function properly and have adequate
                            capacity and security; and
                                ``(ii) has established and will
                            maintain emergency procedures and a
                            plan for disaster recovery, and will
                            periodically test backup facilities
                            sufficient to ensure daily processing,
                            clearing, and settlement of
                            transactions.
                        ``(J) Reporting.--The applicant shall
                    provide to the Commission all information
                    necessary for the Commission to conduct the
                    oversight function of the applicant with
                    respect to the activities of the derivatives
                    clearing organization.
                        ``(K) Recordkeeping.--The applicant shall
                    maintain records of all activities related to
                    the business of the applicant as a derivatives
                    clearing organization in a form and manner
                    acceptable to the Commission for a period of 5
                    years.
                        ``(L) Public information.--The applicant
                    shall make information concerning the rules and
                    operating procedures governing the clearing and
                    settlement systems (including default
                    procedures) available to market participants.
                        ``(M) Information sharing.--The applicant
                    shall--
                                ``(i) enter into and abide by the
                            terms of all appropriate and applicable
                            domestic and international information-
                            sharing agreements; and
                                ``(ii) use relevant information
                            obtained from the agreements in
                            carrying out the clearing
                            organization's risk management program.
                        ``(N) Antitrust considerations.--Unless
                    appropriate to achieve the purposes of this
                    Act, the derivatives clearing organization
                    shall avoid--
                                ``(i) adopting any rule or taking
                            any action that results in any
                            unreasonable restraint of trade; or
                                ``(ii) imposing any material
                            anticompetitive burden on trading on
                            the contract market.
                ``(3) Orders concerning competition.--A derivatives
            clearing organization may request the Commission to
            issue an order concerning whether a rule or practice of
            the applicant is the least anticompetitive means of
            achieving the objectives, purposes, and policies of
            this Act.
        ``(d) Existing Derivatives Clearing Organizations.--A
    derivatives clearing organization shall be deemed to be
    registered under this section to the extent that the
    derivatives clearing organization clears agreements, contracts,
    or transactions for a board of trade that has been designated
    by the Commission as a contract market for such agreements,
    contracts, or transactions before the date of enactment of this
    section.
        ``(e) Appointment of Trustee.--
                ``(1) In general.--If a proceeding under section 5e
            results in the suspension or revocation of the
            registration of a derivatives clearing organization, or
            if a derivatives clearing organization withdraws from
            registration, the Commission, on notice to the
            derivatives clearing organization, may apply to the
            appropriate United States district court where the
            derivatives clearing organization is located for the
            appointment of a trustee.
                ``(2) Assumption of jurisdiction.--If the
            Commission applies for appointment of a trustee under
            paragraph (1)--
                        ``(A) the court may take exclusive
                    jurisdiction over the derivatives clearing
                    organization and the records and assets of the
                    derivatives clearing organization, wherever
                    located; and
                        ``(B) if the court takes jurisdiction under
                    subparagraph (A), the court shall appoint the
                    Commission, or a person designated by the
                    Commission, as trustee with power to take
                    possession and continue to operate or terminate
                    the operations of the derivatives clearing
                    organization in an orderly manner for the
                    protection of participants, subject to such
                    terms and conditions as the court may
                    prescribe.
        ``(f) Linking of Regulated Clearing Facilities.--
                ``(1) In general.--The Commission shall facilitate
            the linking or coordination of derivatives clearing
            organizations registered under this Act with other
            regulated clearance facilities for the coordinated
            settlement of cleared transactions.
                ``(2) Coordination.--In carrying out paragraph (1),
            the Commission shall coordinate with the Federal
            banking agencies and the Securities and Exchange
            Commission.''.

    SEC. 113. COMMON PROVISIONS APPLICABLE TO REGISTERED ENTITIES.

        The Commodity Exchange Act (7 U.S.C. 1 et seq.) is amended
    by inserting after section 5b (as added by section 112(f)) the
    following:

    ``SEC. 5C. COMMON PROVISIONS APPLICABLE TO REGISTERED ENTITIES.

        ``(a) Acceptable Business Practices Under Core
    Principles.--
                ``(1) In general.--Consistent with the purposes of
            this Act, the Commission may issue interpretations, or
            approve interpretations submitted to the Commission, of
            sections 5(d), 5a(d), and 5b(d)(2) to describe what
            would constitute an acceptable business practice under
            such sections.
                ``(2) Effect of interpretation.--An interpretation
            issued under paragraph (1) shall not provide the
            exclusive means for complying with such sections.
        ``(b) Delegation of Functions Under Core Principles.--
                ``(1) In general.--A contract market or derivatives
            transaction execution facility may comply with any
            applicable core principle through delegation of any
            relevant function to a registered futures association
            or another registered entity.
                ``(2) Responsibility.--A contract market or
            derivatives transaction execution facility that
            delegates a function under paragraph (1) shall remain
            responsible for carrying out the function.
                ``(3) Noncompliance.--If a contract market or
            derivatives transaction execution facility that
            delegates a function under paragraph (1) becomes aware
            that a delegated function is not being performed as
            required under this Act, the contract market or
            derivatives transaction execution facility shall
            promptly take steps to address the noncompliance.
        ``(c) New Contracts, New Rules, and Rule Amendments.--
                ``(1) In general.--Subject to paragraph (2), a
            registered entity may elect to list for trading or
            accept for clearing any new contract or other
            instrument, or may elect to approve and implement any
            new rule or rule amendment, by providing to the
            Commission (and the Secretary of the Treasury, in the
            case of a contract of sale of a government security for
            future delivery (or option on such a contract) or a
            rule or rule amendment specifically related to such a
            contract) a written certification that the new contract
            or instrument or clearing of the new contract or
            instrument, new rule, or rule amendment complies with
            this Act (including regulations under this Act).
                ``(2) Prior approval.--
                        ``(A) In general.--A registered entity may
                    request that the Commission grant prior
                    approval to any new contract or other
                    instrument, new rule, or rule amendment.
                        ``(B) Prior approval required.--
                    Notwithstanding any other provision of this
                    section, a designated contract market shall
                    submit to the Commission for prior approval
                    each rule amendment that materially changes the
                    terms and conditions, as determined by the
                    Commission, in any contract of sale for future
                    delivery of a commodity specifically enumerated
                    in section 1a(4) (or any option thereon) traded
                    through its facilities if the rule amendment
                    applies to contracts and delivery months which
                    have already been listed for trading and have
                    open interest.
                        ``(C) Deadline.--If prior approval is
                    requested under subparagraph (A), the
                    Commission shall take final action on the
                    request not later than 90 days after submission
                    of the request, unless the person submitting
                    the request agrees to an extension of the time
                    limitation established under this subparagraph.
                ``(3) Approval.--The Commission shall approve any
            such new contract or instrument, new rule, or rule
            amendment unless the Commission finds that the new
            contract or instrument, new rule, or rule amendment
            would violate this Act.
        ``(d) Violation of Core Principles.--
                ``(1) In general.--If the Commission determines, on
            the basis of substantial evidence, that a registered
            entity is violating any applicable core principle
            specified in section 5(d), 5a(d), or 5b(d)(2), the
            Commission shall--
                        ``(A) notify the registered entity in
                    writing of the determination; and
                        ``(B) afford the registered entity an
                    opportunity to make appropriate changes to
                    bring the registered entity into compliance
                    with the core principles.
                ``(2) Failure to make changes.--If, not later than
            30 days after receiving a notification under paragraph
            (1), a registered entity fails to make changes that, in
            the opinion of the Commission, are necessary to comply
            with the core principles, the Commission may take
            further action in accordance with this Act.
        ``(e) Reservation of Emergency Authority.--Nothing in this
    section shall limit or in any way affect the emergency powers
    of the Commission provided in section 8a(9).''.

    SEC. 114. EXEMPT BOARDS OF TRADE.

        The Commodity Exchange Act (7 U.S.C. 1 et seq.) is amended
    by inserting after section 5c (as added by section 113) the
    following:

    ``SEC. 5D. EXEMPT BOARDS OF TRADE.

        ``(a) Election To Register With the Commission.--A board of
    trade that meets the requirements of subsection (b) of this
    section may operate as an exempt board of trade on receipt from
    the board of trade of a notice, provided in such manner as the
    Commission may by rule or regulation prescribe, that the board
    of trade elects to operate as an exempt board of trade. Except
    as otherwise provided in this section, no provision of this Act
    (other than subparagraphs (C) and (D) of section 2(a)(1) and
    section 12(e)(2)(B)) shall apply with respect to a contract of
    sale of a commodity for future delivery (or option on such a
    contract) traded on or through the facilities of an exempt
    board of trade.
        ``(b) Criteria for Exemption.--To qualify for an exemption
    under subsection (a), a board of trade shall limit trading on
    or through the facilities of the board of trade to contracts of
    sale of a commodity for future delivery (or options on such
    contracts or on a commodity)--
                ``(1) for which the underlying commodity has--
                        ``(A) a nearly inexhaustible deliverable
                    supply;
                        ``(B) a deliverable supply that is
                    sufficiently large, and a cash market
                    sufficiently liquid, to render any contract
                    traded on the commodity highly unlikely to be
                    susceptible to the threat of manipulation; or
                        ``(C) no cash market;
                ``(2) that are entered into only between persons
            that are eligible contract participants at the time at
            which the persons enter into the contract; and
                ``(3) that are not contracts of sale (or options on
            such a contract or on a commodity) for future delivery
            of any security, including any group or index of
            securities or any interest in, or based on the value
            of, any security or any group or index of securities.
        ``(c) Antimanipulation Requirements.--A party to a contract
    of sale of a commodity for future delivery (or option on such a
    contract or on a commodity) that is traded on an exempt board
    of trade shall be subject to sections 4b, 4c(b), 4o, 6(c), and
    9(a)(2), and the Commission shall enforce those provisions with
    respect to any such trading.
        ``(d) Price Discovery.--If the Commission finds that an
    exempt board of trade is a significant source of price
    discovery for transactions in the cash market for the commodity
    underlying any contract, agreement, or transaction traded on or
    through the facilities of the board of trade, the board of
    trade shall disseminate publicly on a daily basis trading
    volume, opening and closing price ranges, open interest, and
    other trading data as appropriate to the market.
        ``(e) Jurisdiction.--The Commission shall have exclusive
    jurisdiction over any account, agreement, contract, or
    transaction involving a contract of sale of a commodity for
    future delivery, or option on such a contract or on a
    commodity, to the extent that the account, agreement, contract,
    or transaction is traded on an exempt board of trade.
        ``(f) Subsidiaries.--A board of trade that is designated as
    a contract market or registered as a derivatives transaction
    execution facility may operate an exempt board of trade by
    establishing a separate subsidiary or other legal entity and
    otherwise satisfying the requirements of this section.
        ``(g) An exempt board of trade that meets the requirements
    of subsection (b) shall not represent to any person that the
    board of trade is registered with, or designated, recognized,
    licensed, or approved by the Commission.''.

    SEC. 115. SUSPENSION OR REVOCATION OF DESIGNATION AS CONTRACT MARKET.

        Section 5e of the Commodity Exchange Act (7 U.S.C. 7b) (as
    redesignated by section 20(1)) is amended to read as follows:

    ``SEC. 5E. SUSPENSION OR REVOCATION OF DESIGNATION AS REGISTERED
                        ENTITY.

        ``The failure of a registered entity to comply with any
    provision of this Act, or any regulation or order of the
    Commission under this Act, shall be cause for the suspension of
    the registered entity for a period not to exceed 180 days, or
    revocation of designation as a registered entity in accordance
    with the procedures and subject to the judicial review provided
    in section 6(b).''.

    SEC. 116. AUTHORIZATION OF APPROPRIATIONS.

        Section 12(d) of the Commodity Exchange Act (7 U.S.C.
    16(d)) is amended by striking ``2000'' and inserting ``2005''.

    SEC. 117. PREEMPTION.

        Section 12 of the Commodity Exchange Act (7 U.S.C. 16(e))
    is amended by striking subsection (e) and inserting the
    following:
        ``(e) Relation to Other Law, Departments, or Agencies.--
                ``(1) Nothing in this Act shall supersede or
            preempt--
                        ``(A) criminal prosecution under any
                    Federal criminal statute;
                        ``(B) the application of any Federal or
                    State statute (except as provided in paragraph
                    (2)), including any rule or regulation
                    thereunder, to any transaction in or involving
                    any commodity, product, right, service, or
                    interest--
                                ``(i) that is not conducted on or
                            subject to the rules of a registered
                            entity or exempt board of trade;
                                ``(ii) (except as otherwise
                            specified by the Commission by rule or
                            regulation) that is not conducted on or
                            subject to the rules of any board of
                            trade, exchange, or market located
                            outside the United States, its
                            territories or possessions; or
                                ``(iii) that is not subject to
                            regulation by the Commission under
                            section 4c or 19; or
                        ``(C) the application of any Federal or
                    State statute, including any rule or regulation
                    thereunder, to any person required to be
                    registered or designated under this Act who
                    shall fail or refuse to obtain such
                    registration or designation.
                ``(2) This Act shall supersede and preempt the
            application of any State or local law that prohibits or
            regulates gaming or the operation of bucket shops
            (other than antifraud provisions of general
            applicability) in the case of--
                        ``(A) an electronic trading facility
                    excluded under section 2(e) of this Act;
                        ``(B) an agreement, contract, or
                    transaction that is excluded from this Act
                    under section 2(c), 2(d), 2(f), or 2(g) of this
                    Act or title IV of the Commodity Futures
                    Modernization Act of 2000, or exempted under
                    section 2(h) or 4(c) of this Act (regardless of
                    whether any such agreement, contract, or
                    transaction is otherwise subject to this
                    Act).''.

    SEC. 118. PREDISPUTE RESOLUTION AGREEMENTS FOR INSTITUTIONAL CUSTOMERS.

        Section 14 of the Commodity Exchange Act (7 U.S.C. 18) is
    amended by striking subsection (g) and inserting the following:
        ``(g) Predispute Resolution Agreements for Institutional
    Customers.--Nothing in this section prohibits a registered
    futures commission merchant from requiring a customer that is
    an eligible contract participant, as a condition to the
    commission merchant's conducting a transaction for the
    customer, to enter into an agreement waiving the right to file
    a claim under this section.''.

    SEC. 119. CONSIDERATION OF COSTS AND BENEFITS AND ANTITRUST LAWS.

        Section 15 of the Commodity Exchange Act (7 U.S.C. 19) is
    amended by striking ``Sec. 15. The Commission'' and inserting
    the following:

    ``SEC. 15. CONSIDERATION OF COSTS AND BENEFITS AND ANTITRUST LAWS.

        ``(a) Costs and Benefits.--
                ``(1) In general.--Before promulgating a regulation
            under this Act or issuing an order (except as provided
            in paragraph (3)), the Commission shall consider the
            costs and benefits of the action of the Commission.
                ``(2) Considerations.--The costs and benefits of
            the proposed Commission action shall be evaluated in
            light of--
                        ``(A) considerations of protection of
                    market participants and the public;
                        ``(B) considerations of the efficiency,
                    competitiveness, and financial integrity of
                    futures markets;
                        ``(C) considerations of price discovery;
                        ``(D) considerations of sound risk
                    management practices; and
                        ``(E) other public interest considerations.
                ``(3) Applicability.--This subsection does not
            apply to the following actions of the Commission:
                        ``(A) An order that initiates, is part of,
                    or is the result of an adjudicatory or
                    investigative process of the Commission.
                        ``(B) An emergency action.
                        ``(C) A finding of fact regarding
                    compliance with a requirement of the
                    Commission.
        ``(b) Antitrust Laws.--The Commission''.

    SEC. 120. CONTRACT ENFORCEMENT BETWEEN ELIGIBLE COUNTERPARTIES.

        Section 22(a) of the Commodity Exchange Act (7 U.S.C.
    25(a)) is amended by adding at the end the following:
                ``(4) Contract enforcement between eligible
            counterparties.--No agreement, contract, or transaction
            between eligible contract participants or persons
            reasonably believed to be eligible contract
            participants, and no hybrid instrument sold to any
            investor, shall be void, voidable, or unenforceable,
            and no such party shall be entitled to rescind, or
            recover any payment made with respect to, such an
            agreement, contract, transaction, or instrument under
            this section or any other provision of Federal or State
            law, based solely on the failure of the agreement,
            contract, transaction, or instrument to comply with the
            terms or conditions of an exemption or exclusion from
            any provision of this Act or regulations of the
            Commission.''.

    SEC. 121. SPECIAL PROCEDURES TO ENCOURAGE AND FACILITATE BONA FIDE
                        HEDGING BY AGRICULTURAL PRODUCERS.

        The Commodity Exchange Act, as otherwise amended by this
    Act, is amended by inserting after section 4o the following:

    ``SEC. 4P. SPECIAL PROCEDURES TO ENCOURAGE AND FACILITATE BONA FIDE
                        HEDGING BY AGRICULTURAL PRODUCERS.

        ``(a) Authority.--The Commission shall consider issuing
    rules or orders which--
                ``(1) prescribe procedures under which each
            contract market is to provide for orderly delivery,
            including temporary storage costs, of any agricultural
            commodity enumerated in section 1a(4) which is the
            subject of a contract for purchase or sale for future
            delivery;
                ``(2) increase the ease with which domestic
            agricultural producers may participate in contract
            markets, including by addressing cost and margin
            requirements, so as to better enable the producers to
            hedge price risk associated with their production;
                ``(3) provide flexibility in the minimum quantities
            of such agricultural commodities that may be the
            subject of a contract for purchase or sale for future
            delivery that is traded on a contract market, to better
            allow domestic agricultural producers to hedge such
            price risk; and
                ``(4) encourage contract markets to provide
            information and otherwise facilitate the participation
            of domestic agricultural producers in contract markets.
        ``(b) Report.--Within 1 year after the date of enactment of
    this section, the Commission shall submit to the Committee on
    Agriculture of the House of Representatives and the Committee
    on Agriculture, Nutrition, and Forestry of the Senate a report
    on the steps it has taken to implement this section and on the
    activities of contract markets pursuant to this section.''.

    SEC. 122. RULE OF CONSTRUCTION.

        Except as expressly provided in this Act or an amendment
    made by this Act, nothing in this Act or an amendment made by
    this Act supersedes, affects, or otherwise limits or expands
    the scope and applicability of laws governing the Securities
    and Exchange Commission.

    SEC. 123. TECHNICAL AND CONFORMING AMENDMENTS.

        (a) Commodity Exchange Act.--
                (1) Section 1a of the Commodity Exchange Act (7
            U.S.C. 1a) (as amended by section 101) is amended--
                        (A) in paragraphs (5), (6), (16), (17),
                    (20), and (23), by inserting ``or derivatives
                    transaction execution facility'' after
                    ``contract market'' each place it appears; and
                        (B) in paragraph (24)--
                                (i) in the paragraph heading, by
                            striking ``contract market'' and
                            inserting ``registered entity'';
                                (ii) by striking ``contract
                            market'' each place it appears and
                            inserting ``registered entity''; and
                                (iii) by adding at the end the
                            following:
            ``A participant in an alternative trading system that
            is designated as a contract market pursuant to section
            5f is deemed a member of the contract market for
            purposes of transactions in security futures products
            through the contract market.''.
                (2) Section 2 of the Commodity Exchange Act (7
            U.S.C. 2, 2a, 4, 4a, 3) is amended--
                        (A) by striking ``Sec. 2. (a)(1)(A)(i)
                    The'' and inserting the following:

    ``SEC. 2. JURISDICTION OF COMMISSION; LIABILITY OF PRINCIPAL FOR ACT OF
                        AGENT; COMMODITY FUTURES TRADING COMMISSION;
                        TRANSACTION IN INTERSTATE COMMERCE.

        ``(a) Jurisdiction of Commission; Commodity Futures Trading
    Commission.--
                ``(1) Jurisdiction of commission.--
                        ``(A) In general.--The''; and
                        (B) in subsection (a)(1)--
                                (i) in subparagraph (A) (as amended
                            by subparagraph (A) of this
                            paragraph)--
                                        (II) by striking
                                    ``subparagraph (B) of this
                                    subparagraph'' and inserting
                                    ``subparagraphs (C) and (D) of
                                    this paragraph and subsections
                                    (c) through (i) of this
                                    section'';
                                        (III) by striking
                                    ``contract market designated
                                    pursuant to section 5 of this
                                    Act'' and inserting ``contract
                                    market designated or
                                    derivatives transaction
                                    execution facility registered
                                    pursuant to section 5 or 5a'';
                                        (IV) by striking clause
                                    (ii); and
                                        (V) in clause (iii), by
                                    striking ``(iii) The'' and
                                    inserting the following:
                        ``(B) Liability of principal for act of
                    agent.--The''; and
                                (ii) in subparagraph (B)--
                                        (I) by striking ``(B)'' and
                                    inserting ``(C)'';
                                        (II) in clause (v)--
                                                (aa) by striking
                                            ``section 3 of the
                                            Securities Act of
                                            1933''; and
                                                (bb) by inserting
                                            ``or subparagraph (D)''
                                            after ``subparagraph'';
                                            and
                                        (III) by moving clauses (i)
                                    through (v) 4 ems to the right;
                        (C) in subsection (a)(7), by striking
                    ``contract market'' and inserting ``registered
                    entity'';
                        (D) in subsection (a)(8)(B)(ii)--
                                (i) in the first sentence, by
                            striking ``designation as a contract
                            market'' and inserting ``designation or
                            registration as a contract market or
                            derivatives transaction execution
                            facility'';
                                (ii) in the second sentence, by
                            striking ``designate a board of trade
                            as a contract market'' and inserting
                            ``designate or register a board of
                            trade as a contract market or
                            derivatives transaction execution
                            facility''; and
                                (iii) in the fourth sentence, by
                            striking ``designating, or refusing,
                            suspending, or revoking the designation
                            of, a board of trade as a contract
                            market involving transactions for
                            future delivery referred to in this
                            clause or in considering possible
                            emergency action under section 8a(9) of
                            this Act'' and inserting ``designating,
                            registering, or refusing, suspending,
                            or revoking the designation or
                            registration of, a board of trade as a
                            contract market or derivatives
                            transaction execution facility
                            involving transactions for future
                            delivery referred to in this clause or
                            in considering any possible action
                            under this Act (including without
                            limitation emergency action under
                            section 8a(9))'', and by striking
                            ``designation, suspension, revocation,
                            or emergency action'' and inserting
                            ``designation, registration,
                            suspension, revocation, or action'';
                            and
                        (E) in subsection (a), by moving paragraphs
                    (2) through (9) 2 ems to the right.
                (3) Section 4 of the Commodity Exchange Act (7
            U.S.C. 6) is amended--
                        (A) in subsection (a)--
                                (i) in paragraph (1), by striking
                            ``designated by the Commission as a
                            `contract market' for'' and inserting
                            ``designated or registered by the
                            Commission as a contract market or
                            derivatives transaction execution
                            facility for'';
                                (ii) in paragraph (2), by striking
                            ``member of such''; and
                                (iii) in paragraph (3), by
                            inserting ``or derivatives transaction
                            execution facility'' after ``contract
                            market''; and
                        (B) in subsection (c)--
                                (i) in paragraph (1)--
                                        (I) by striking
                                    ``designated as a contract
                                    market'' and inserting
                                    ``designated or registered as a
                                    contract market or derivatives
                                    transaction execution
                                    facility''; and
                                        (II) by striking ``section
                                    2(a)(1)(B)'' and inserting
                                    ``subparagraphs (C)(ii) and (D)
                                    of section 2(a)(1), except that
                                    the Commission and the
                                    Securities and Exchange
                                    Commission may by rule,
                                    regulation, or order jointly
                                    exclude any agreement,
                                    contract, or transaction from
                                    section 2(a)(1)(D)''; and
                                (ii) in paragraph (2)(B)(ii), by
                            inserting ``or derivatives transaction
                            execution facility'' after ``contract
                            market''.
                (4) Section 4a of the Commodity Exchange Act (7
            U.S.C. 6a) is amended--
                        (A) in subsection (a)--
                                (i) in the first sentence, by
                            inserting ``or derivatives transaction
                            execution facilities'' after ``contract
                            markets''; and
                                (ii) in the second sentence, by
                            inserting ``or derivatives transaction
                            execution facility'' after ``contract
                            market'';
                        (B) in subsection (b)--
                                (i) in paragraph (1), by inserting
                            ``, or derivatives transaction
                            execution facility or facilities,''
                            after ``markets''; and
                                (ii) in paragraph (2), by inserting
                            ``or derivatives transaction execution
                            facility'' after ``contract market'';
                            and
                        (C) in subsection (e)--
                                (i) by striking ``contract market
                            or'' each place it appears and
                            inserting ``contract market,
                            derivatives transaction execution
                            facility, or'';
                                (ii) by striking ``licensed or
                            designated'' each place it appears and
                            inserting ``licensed, designated, or
                            registered''; and
                                (iii) by striking ``contract
                            market, or'' and inserting ``contract
                            market or derivatives transaction
                            execution facility, or''.
                (5) Section 4b(a) of the Commodity Exchange Act (7
            U.S.C. 6b(a)) is amended by striking ``contract
            market'' each place it appears and inserting
            ``registered entity''.
                (6) Sections 4c(g), 4d, 4e, and 4f of the Commodity
            Exchange Act (7 U.S.C. 6c(g), 6d, 6e, 6f) are amended
            by inserting ``or derivatives transaction execution
            facility'' after ``contract market'' each place it
            appears.
                (7) Section 4g of the Commodity Exchange Act (7
            U.S.C. 6g) is amended--
                        (A) in subsection (b), by striking
                    ``clearinghouse and contract market'' and
                    inserting ``registered entity''; and
                        (B) in subsection (f), by striking
                    ``clearinghouses, contract markets, and
                    exchanges'' and inserting ``registered
                    entities''.
                (8) Section 4h of the Commodity Exchange Act (7
            U.S.C. 6h) is amended by striking ``contract market''
            each place it appears and inserting ``registered
            entity''.
                (9) Section 4i of the Commodity Exchange Act (7
            U.S.C. 6i) is amended in the first sentence by
            inserting ``or derivatives transaction execution
            facility'' after ``contract market''.
                (10) Section 4l of the Commodity Exchange Act (7
            U.S.C. 6l) is amended by inserting ``or derivatives
            transaction execution facilities'' after ``contract
            markets'' each place it appears.
                (11) Section 4p of the Commodity Exchange Act (7
            U.S.C. 6p) is amended--
                        (A) in the third sentence of subsection
                    (a), by striking ``Act or contract markets''
                    and inserting ``Act, contract markets, or
                    derivatives transaction execution facilities'';
                    and
                        (B) in subsection (b), by inserting
                    ``derivatives transaction execution facility,''
                    after ``contract market,''.
                (12) Section 6 of the Commodity Exchange Act (7
            U.S.C. 8, 9, 9a, 9b, 13b, 15) is amended--
                        (A) in subsection (a)--
                                (i) in the first sentence--
                                        (I) by striking ``board of
                                    trade desiring to be designated
                                    a `contract market' shall make
                                    application to the Commission
                                    for such designation'' and
                                    inserting ``person desiring to
                                    be designated or registered as
                                    a contract market or
                                    derivatives transaction
                                    execution facility shall make
                                    application to the Commission
                                    for the designation or
                                    registration'';
                                        (II) by striking ``above
                                    conditions'' and inserting
                                    ``conditions set forth in this
                                    Act''; and
                                        (III) by striking ``above
                                    requirements'' and inserting
                                    ``the requirements of this
                                    Act'';
                                (ii) in the second sentence, by
                            striking ``designation as a contract
                            market within one year'' and inserting
                            ``designation or registration as a
                            contract market or derivatives
                            transaction execution facility within
                            180 days'';
                                (iii) in the third sentence--
                                        (I) by striking ``board of
                                    trade'' and inserting
                                    ``person''; and
                                        (II) by striking ``one-year
                                    period'' and inserting ``180-
                                    day period''; and
                                (iv) in the last sentence, by
                            striking ``designate as a `contract
                            market' any board of trade that has
                            made application therefor, such board
                            of trade'' and inserting ``designate or
                            register as a contract market or
                            derivatives transaction execution
                            facility any person that has made
                            application therefor, the person'';
                        (B) in subsection (b)--
                                (i) in the first sentence--
                                        (I) by striking
                                    ``designation of any board of
                                    trade as a `contract market'
                                    upon'' and inserting
                                    ``designation or registration
                                    of any contract market or
                                    derivatives transaction
                                    execution facility on'';
                                        (II) by striking ``board of
                                    trade'' each place it appears
                                    and inserting ``contract market
                                    or derivatives transaction
                                    execution facility''; and
                                        (III) by striking
                                    ``designation as set forth in
                                    section 5 of this Act'' and
                                    inserting ``designation or
                                    registration as set forth in
                                    sections 5 through 5b or
                                    section 5f'';
                                (ii) in the second sentence--
                                        (I) by striking ``board of
                                    trade'' the first place it
                                    appears and inserting
                                    ``contract market or
                                    derivatives transaction
                                    execution facility''; and
                                        (II) by striking ``board of
                                    trade'' the second and third
                                    places it appears and inserting
                                    ``person''; and
                                (iii) in the last sentence, by
                            striking ``board of trade'' each place
                            it appears and inserting ``person'';
                        (C) in subsection (c)--
                                (i) by striking ``contract market''
                            each place it appears and inserting
                            ``registered entity'';
                                (ii) by striking ``contract
                            markets'' each place it appears and
                            inserting ``registered entities''; and
                                (iii) by striking ``trading
                            privileges'' each place it appears and
                            inserting ``privileges'';
                        (D) in subsection (d), by striking
                    ``contract market'' each place it appears and
                    inserting ``registered entity''; and
                        (E) in subsection (e), by striking
                    ``trading on all contract markets'' each place
                    it appears and inserting ``the privileges of
                    all registered entities''.
                (13) Section 6a of the Commodity Exchange Act (7
            U.S.C. 10a) is amended--
                        (A) in the first sentence of subsection
                    (a), by striking ``designated as a `contract
                    market' shall'' and inserting ``designated or
                    registered as a contract market or a
                    derivatives transaction execution facility'';
                    and
                        (B) in subsection (b), by striking
                    ``designated as a contract market'' and
                    inserting ``designated or registered as a
                    contract market or a derivatives transaction
                    execution facility''.
                (14) Section 6b of the Commodity Exchange Act (7
            U.S.C. 13a) is amended--
                        (A) by striking ``contract market'' each
                    place it appears and inserting ``registered
                    entity'';
                        (B) in the first sentence, by striking
                    ``designation as set forth in section 5 of this
                    Act'' and inserting ``designation or
                    registration as set forth in sections 5 through
                    5c''; and
                        (C) in the last sentence, by striking ``the
                    contract market's ability'' and inserting ``the
                    ability of the registered entity''.
                (15) Section 6c(a) of the Commodity Exchange Act (7
            U.S.C. 13a-1(a)) by striking ``contract market'' and
            inserting ``registered entity''.
                (16) Section 6d(1) of the Commodity Exchange Act (7
            U.S.C. 13a-2(1)) is amended by inserting ``derivatives
            transaction execution facility,'' after ``contract
            market,''.
                (17) Section 7 of the Commodity Exchange Act (7
            U.S.C. 11) is amended--
                        (A) in the first sentence--
                                (i) by striking ``board of trade''
                            and inserting ``person'';
                                (ii) by inserting ``or registered''
                            after ``designated'';
                                (iii) by inserting ``or
                            registration'' after ``designation''
                            each place it appears; and
                                (iv) by striking ``contract
                            market'' each place it appears and
                            inserting ``registered entity'';
                        (B) in the second sentence--
                                (i) by striking ``designation of
                            such board of trade as a contract
                            market'' and inserting ``designation or
                            registration of the registered
                            entity''; and
                                (ii) by striking ``contract
                            markets'' and inserting ``registered
                            entities''; and
                        (C) in the last sentence--
                                (i) by striking ``board of trade''
                            and inserting ``person''; and
                                (ii) by striking ``designated again
                            a contract market'' and inserting
                            ``designated or registered again a
                            registered entity''.
                (18) Section 8(c) of the Commodity Exchange Act (7
            U.S.C. 12(c)) is amended in the first sentence by
            striking ``board of trade'' and inserting ``registered
            entity''.
                (19) Section 8a of the Commodity Exchange Act (7
            U.S.C. 12a) is amended--
                        (A) by striking ``contract market'' each
                    place it appears and inserting ``registered
                    entity''; and
                        (B) in paragraph (2)(F), by striking
                    ``trading privileges'' and inserting
                    ``privileges''.
                (20) Sections 8b and 8c(e) of the Commodity
            Exchange Act (7 U.S.C. 12b, 12c(e)) are amended by
            striking ``contract market'' each place it appears and
            inserting ``registered entity''.
                (21) Section 8e of the Commodity Exchange Act (7
            U.S.C. 12e) is repealed.
                (22) Section 9 of the Commodity Exchange Act (7
            U.S.C. 13) is amended by striking ``contract market''
            each place it appears and inserting ``registered
            entity''.
                (23) Section 14 of the Commodity Exchange Act (7
            U.S.C. 18) is amended--
                        (A) in subsection (a)(1)(B), by striking
                    ``contract market'' and inserting ``registered
                    entity''; and
                        (B) in subsection (f), by striking
                    ``contract markets'' and inserting ``registered
                    entities''.
                (24) Section 17 of the Commodity Exchange Act (7
            U.S.C. 21) is amended by striking ``contract market''
            each place it appears and inserting ``registered
            entity''.
                (25) Section 22 of the Commodity Exchange Act (7
            U.S.C. 25) is amended--
                        (A) in subsection (a)--
                                (i) in paragraph (1)--
                                        (I) by striking ``contract
                                    market, clearing organization
                                    of a contract market, licensed
                                    board of trade,'' and inserting
                                    ``registered entity''; and
                                        (II) in subparagraph
                                    (C)(i), by striking ``contract
                                    market'' and inserting
                                    ``registered entity'';
                                (ii) in paragraph (2), by striking
                            ``sections 5a(11),'' and inserting
                            ``sections 5(d)(13), 5b(b)(1)(E),'';
                            and
                                (iii) in paragraph (3), by striking
                            ``contract market'' and inserting
                            ``registered entity''; and
                        (B) in subsection (b)--
                                (i) in paragraph (1)--
                                        (I) by striking ``contract
                                    market or clearing organization
                                    of a contract market'' and
                                    inserting ``registered
                                    entity'';
                                        (II) by striking ``section
                                    5a(8) and section 5a(9) of this
                                    Act'' and inserting ``sections
                                    5 through 5c'';
                                        (III) by striking
                                    ``contract market, clearing
                                    organization of a contract
                                    market, or licensed board of
                                    trade'' and inserting
                                    ``registered entity''; and
                                        (IV) by striking ``contract
                                    market or licensed board of
                                    trade'' and inserting
                                    ``registered entity'';
                                (ii) in paragraph (3)--
                                        (I) by striking ``a
                                    contract market, clearing
                                    organization, licensed board of
                                    trade,'' and inserting
                                    ``registered entity''; and
                                        (II) by striking ``contract
                                    market, licensed board of
                                    trade'' and inserting
                                    ``registered entity'';
                                (iii) in paragraph (4), by striking
                            ``contract market, licensed board of
                            trade, clearing organization,'' and
                            inserting ``registered entity''; and
                                (iv) in paragraph (5), by striking
                            ``contract market, licensed board of
                            trade, clearing organization,'' and
                            inserting ``registered entity''.
        (b) Federal Deposit Insurance Corporation Improvement Act
    of 1991.--Section 402(2) of the Federal Deposit Insurance
    Corporation Improvement Act of 1991 (12 U.S.C. 4402(2)) is
    amended by striking subparagraph (B) and inserting the
    following:
                        ``(B) that is registered as a derivatives
                    clearing organization under section 5b of the
                    Commodity Exchange Act.''.

    SEC. 124. PRIVACY.

        The Commodity Exchange Act (7 U.S.C. 1 et seq.) is amended
    by inserting after section 5f (as added by section 252) the
    following:

    ``SEC. 5G. PRIVACY.

        ``(a) Treatment as Financial Institutions.--Notwithstanding
    section 509(3)(B) of the Gramm-Leach-Bliley Act, any futures
    commission merchant, commodity trading advisor, commodity pool
    operator, or introducing broker that is subject to the
    jurisdiction of the Commission under this Act with respect to
    any financial activity shall be treated as a financial
    institution for purposes of title V of such Act with respect to
    such financial activity.
        ``(b) Treatment of CFTC as Federal Functional Regulator.--
    For purposes of title V of such Act, the Commission shall be
    treated as a Federal functional regulator within the meaning of
    section 509(2) of such Act and shall prescribe regulations
    under such title within 6 months after the date of enactment of
    this section.''.

    SEC. 125. REPORT TO CONGRESS.

        (a) The Commodity Futures Trading Commission (in this
    section referred to as the ``Commission'') shall undertake and
    complete a study of the Commodity Exchange Act (in this section
    referred to as ``the Act'') and the Commission's rules,
    regulations and orders governing the conduct of persons
    required to be registered under the Act, not later than 1 year
    after the date of the enactment of this Act. The study shall
    identify--
                (1) the core principles and interpretations of
            acceptable business practices that the Commission has
            adopted or intends to adopt to replace the provisions
            of the Act and the Commission's rules and regulations
            thereunder;
                (2) the rules and regulations that the Commission
            has determined must be retained and the reasons
            therefor;
                (3) the extent to which the Commission believes it
            can effect the changes identified in paragraph (1) of
            this subsection through its exemptive authority under
            section 4(c) of the Act; and
                (4) the regulatory functions the Commission
            currently performs that can be delegated to a
            registered futures association (within the meaning of
            the Act) and the regulatory functions that the
            Commission has determined must be retained and the
            reasons therefor.
        (b) In conducting the study, the Commission shall solicit
    the views of the public as well as Commission registrants,
    registered entities, and registered futures associations (all
    within the meaning of the Act).
        (c) The Commission shall transmit to the Committee on
    Agriculture of the House of Representatives and the Committee
    on Agriculture, Nutrition, and Forestry of the Senate a report
    of the results of its study, which shall include an analysis of
    comments received.

    SEC. 126. INTERNATIONAL ACTIVITIES OF THE COMMODITY FUTURES TRADING
                        COMMISSION.

        (a) Findings.--The Congress finds that--
                (1) derivatives markets serving United States
            industry are increasingly global in scope;
                (2) developments in data processing and
            communications technologies enable users of risk
            management services to analyze and compare those
            services on a worldwide basis;
                (3) financial services regulatory policy must be
            flexible to account for rapidly changing derivatives
            industry business practices;
                (4) regulatory impediments to the operation of
            global business interests can compromise the
            competitiveness of United States businesses;
                (5) events that disrupt financial markets and
            economies are often global in scope, require rapid
            regulatory response, and coordinated regulatory effort
            across international jurisdictions;
                (6) through its membership in the International
            Organisation of Securities Commissions, the Commodity
            Futures Trading Commission has promoted beneficial
            communication among market regulators and international
            regulatory cooperation; and
                (7) the Commodity Futures Trading Commission and
            other United States financial regulators and self-
            regulatory organizations should continue to foster
            productive and cooperative working relationships with
            their counterparts in foreign jurisdictions.
        (b) Sense of the Congress.--It is the sense of the Congress
    that, consistent with its responsibilities under the Commodity
    Exchange Act, the Commodity Futures Trading Commission should,
    as part of its international activities, continue to coordinate
    with foreign regulatory authorities, to participate in
    international regulatory organizations and forums, and to
    provide technical assistance to foreign government authorities,
    in order to encourage--
                (1) the facilitation of cross-border transactions
            through the removal or lessening of any unnecessary
            legal or practical obstacles;
                (2) the development of internationally accepted
            regulatory standards of best practice;
                (3) the enhancement of international supervisory
            cooperation and emergency procedures;
                (4) the strengthening of international cooperation
            for customer and market protection; and
                (5) improvements in the quality and timeliness of
            international information sharing.

         TITLE II--COORDINATED REGULATION OF SECURITY FUTURES PRODUCTS

                     Subtitle A--Securities Law Amendments

    SEC. 201. DEFINITIONS UNDER THE SECURITIES EXCHANGE ACT OF 1934.

        Section 3(a) of the Securities Exchange Act of 1934 (15
    U.S.C. 78c(a)) is amended--
                (1) in paragraph (10), by inserting ``security
            future,'' after ``treasury stock,'';
                (2) by striking paragraph (11) and inserting the
            following:
                ``(11) The term `equity security' means any stock
            or similar security; or any security future on any such
            security; or any security convertible, with or without
            consideration, into such a security, or carrying any
            warrant or right to subscribe to or purchase such a
            security; or any such warrant or right; or any other
            security which the Commission shall deem to be of
            similar nature and consider necessary or appropriate,
            by such rules and regulations as it may prescribe in
            the public interest or for the protection of investors,
            to treat as an equity security.'';
                (3) in paragraph (13), by adding at the end the
            following: ``For security futures products, such term
            includes any contract, agreement, or transaction for
            future delivery.'';
                (4) in paragraph (14), by adding at the end the
            following: ``For security futures products, such term
            includes any contract, agreement, or transaction for
            future delivery.''; and
                (5) by adding at the end the following:
                ``(55)(A) The term `security future' means a
            contract of sale for future delivery of a single
            security or of a narrow-based security index, including
            any interest therein or based on the value thereof,
            except an exempted security under section 3(a)(12) of
            the Securities Exchange Act of 1934 as in effect on the
            date of enactment of the Futures Trading Act of 1982
            (other than any municipal security as defined in
            section 3(a)(29) as in effect on the date of enactment
            of the Futures Trading Act of 1982). The term `security
            future' does not include any agreement, contract, or
            transaction excluded from the Commodity Exchange Act
            under section 2(c), 2(d), 2(f) or 2(g) of the Commodity
            Exchange Act (as in effect on the date of enactment of
            the Commodity Futures Modernization Act of 2000) or
            title IV of the Commodity Futures Modernization Act of
            2000.
                ``(B) The term `narrow-based security index' means
            an index--
                        ``(i) that has 9 or fewer component
                    securities;
                        ``(ii) in which a component security
                    comprises more than 30 percent of the index's
                    weighting;
                        ``(iii) in which the 5 highest weighted
                    component securities in the aggregate comprise
                    more than 60 percent of the index's weighting;
                    or
                        ``(iv) in which the lowest weighted
                    component securities comprising, in the
                    aggregate, 25 percent of the index's weighting
                    have an aggregate dollar value of average daily
                    trading volume of less than $50,000,000 (or in
                    the case of an index with 15 or more component
                    securities, $30,000,000), except that if there
                    are two or more securities with equal weighting
                    that could be included in the calculation of
                    the lowest weighted component securities
                    comprising, in the aggregate, 25 percent of the
                    index's weighting, such securities shall be
                    ranked from lowest to highest dollar value of
                    average daily trading volume and shall be
                    included in the calculation based on their
                    ranking starting with the lowest ranked
                    security.
                ``(C) Notwithstanding subparagraph (B), an index is
            not a narrow-based security index if--
                                ``(i)(I) it has at least 9
                            component securities;
                                ``(II) no component security
                            comprises more than 30 percent of the
                            index's weighting; and
                                ``(III) each component security
                            is--
                                        ``(aa) registered pursuant
                                    to section 12 of the Securities
                                    Exchange Act of 1934;
                                        ``(bb) 1 of 750 securities
                                    with the largest market
                                    capitalization; and
                                        ``(cc) 1 of 675 securities
                                    with the largest dollar value
                                    of average daily trading
                                    volume;
                                ``(ii) a board of trade was
                            designated as a contract market by the
                            Commodity Futures Trading Commission
                            with respect to a contract of sale for
                            future delivery on the index, before
                            the date of enactment of the Commodity
                            Futures Modernization Act of 2000;
                                ``(iii)(I) a contract of sale for
                            future delivery on the index traded on
                            a designated contract market or
                            registered derivatives transaction
                            execution facility for at least 30 days
                            as a contract of sale for future
                            delivery on an index that was not a
                            narrow-based security index; and
                                ``(II) it has been a narrow-based
                            security index for no more than 45
                            business days over 3 consecutive
                            calendar months;
                                ``(iv) a contract of sale for
                            future delivery on the index is traded
                            on or subject to the rules of a foreign
                            board of trade and meets such
                            requirements as are jointly established
                            by rule or regulation by the Commission
                            and the Commodity Futures Trading
                            Commission;
                                ``(v) no more than 18 months have
                            passed since the date of enactment of
                            the Commodity Futures Modernization Act
                            of 2000 and--
                                        ``(I) it is traded on or
                                    subject to the rules of a
                                    foreign board of trade;
                                        ``(II) the offer and sale
                                    in the United States of a
                                    contract of sale for future
                                    delivery on the index was
                                    authorized before the date of
                                    the enactment of the Commodity
                                    Futures Modernization Act of
                                    2000; and
                                        ``(III) the conditions of
                                    such authorization continue to
                                    be met; or
                                ``(vi) a contract of sale for
                            future delivery on the index is traded
                            on or subject to the rules of a board
                            of trade and meets such requirements as
                            are jointly established by rule,
                            regulation, or order by the Commission
                            and the Commodity Futures Trading
                            Commission.
                ``(D) Within 1 year after the enactment of the
            Commodity Futures Modernization Act of 2000, the
            Commission and the Commodity Futures Trading Commission
            jointly shall adopt rules or regulations that set forth
            the requirements under clause (iv) of subparagraph (C).
                ``(E) An index that is a narrow-based security
            index solely because it was a narrow-based security
            index for more than 45 business days over 3 consecutive
            calendar months pursuant to clause (iii) of
            subparagraph (C) shall not be a narrow-based security
            index for the 3 following calendar months.
                ``(F) For purposes of subparagraphs (B) and (C) of
            this paragraph--
                        ``(i) the dollar value of average daily
                    trading volume and the market capitalization
                    shall be calculated as of the preceding 6 full
                    calendar months; and
                        ``(ii) the Commission and the Commodity
                    Futures Trading Commission shall, by rule or
                    regulation, jointly specify the method to be
                    used to determine market capitalization and
                    dollar value of average daily trading volume.
                ``(56) The term `security futures product' means a
            security future or any put, call, straddle, option, or
            privilege on any security future.
                ``(57)(A) The term `margin', when used with respect
            to a security futures product, means the amount, type,
            and form of collateral required to secure any extension
            or maintenance of credit, or the amount, type, and form
            of collateral required as a performance bond related to
            the purchase, sale, or carrying of a security futures
            product.
                ``(B) The terms `margin level' and `level of
            margin', when used with respect to a security futures
            product, mean the amount of margin required to secure
            any extension or maintenance of credit, or the amount
            of margin required as a performance bond related to the
            purchase, sale, or carrying of a security futures
            product.
                ``(C) The terms `higher margin level' and `higher
            level of margin', when used with respect to a security
            futures product, mean a margin level established by a
            national securities exchange registered pursuant to
            section 6(g) that is higher than the minimum amount
            established and in effect pursuant to section
            7(c)(2)(B).''.

    SEC. 202. REGULATORY RELIEF FOR MARKETS TRADING SECURITY FUTURES
                        PRODUCTS.

        (a) Expedited Registration and Exemption.--Section 6 of the
    Securities Exchange Act of 1934 (15 U.S.C. 78f) is amended by
    adding at the end the following:
        ``(g) Notice Registration of Security Futures Product
    Exchanges.--
                ``(1) Registration required.--An exchange that
            lists or trades security futures products may register
            as a national securities exchange solely for the
            purposes of trading security futures products if--
                        ``(A) the exchange is a board of trade, as
                    that term is defined by the Commodity Exchange
                    Act (7 U.S.C. 1a(2)), that--
                                ``(i) has been designated a
                            contract market by the Commodity
                            Futures Trading Commission and such
                            designation is not suspended by order
                            of the Commodity Futures Trading
                            Commission; or
                                ``(ii) is registered as a
                            derivative transaction execution
                            facility under section 5a of the
                            Commodity Exchange Act and such
                            registration is not suspended by the
                            Commodity Futures Trading Commission;
                            and
                        ``(B) such exchange does not serve as a
                    market place for transactions in securities
                    other than--
                                ``(i) security futures products; or
                                ``(ii) futures on exempted
                            securities or groups or indexes of
                            securities or options thereon that have
                            been authorized under section
                            2(a)(1)(C) of the Commodity Exchange
                            Act.
                ``(2) Registration by notice filing.--
                        ``(A) Form and content.--An exchange
                    required to register only because such exchange
                    lists or trades security futures products may
                    register for purposes of this section by filing
                    with the Commission a written notice in such
                    form as the Commission, by rule, may prescribe
                    containing the rules of the exchange and such
                    other information and documents concerning such
                    exchange, comparable to the information and
                    documents required for national securities
                    exchanges under section 6(a), as the
                    Commission, by rule, may prescribe as necessary
                    or appropriate in the public interest or for
                    the protection of investors. If such exchange
                    has filed documents with the Commodity Futures
                    Trading Commission, to the extent that such
                    documents contain information satisfying the
                    Commission's informational requirements, copies
                    of such documents may be filed with the
                    Commission in lieu of the required written
                    notice.
                        ``(B) Immediate effectiveness.--Such
                    registration shall be effective
                    contemporaneously with the submission of
                    notice, in written or electronic form, to the
                    Commission, except that such registration shall
                    not be effective if such registration would be
                    subject to suspension or revocation.
                        ``(C) Termination.--Such registration shall
                    be terminated immediately if any of the
                    conditions for registration set forth in this
                    subsection are no longer satisfied.
                ``(3) Public availability.--The Commission shall
            promptly publish in the Federal Register an
            acknowledgment of receipt of all notices the Commission
            receives under this subsection and shall make all such
            notices available to the public.
                ``(4) Exemption of exchanges from specified
            provisions.--
                        ``(A) Transaction exemptions.--An exchange
                    that is registered under paragraph (1) of this
                    subsection shall be exempt from, and shall not
                    be required to enforce compliance by its
                    members with, and its members shall not, solely
                    with respect to those transactions effected on
                    such exchange in security futures products, be
                    required to comply with, the following
                    provisions of this title and the rules
                    thereunder:
                                ``(i) Subsections (b)(2), (b)(3),
                            (b)(4), (b)(7), (b)(9), (c), (d), and
                            (e) of this section.
                                ``(ii) Section 8.
                                ``(iii) Section 11.
                                ``(iv) Subsections (d), (f), and
                            (k) of section 17.
                                ``(v) Subsections (a), (f), and (h)
                            of section 19.
                        ``(B) Rule change exemptions.--An exchange
                    that registered under paragraph (1) of this
                    subsection shall also be exempt from submitting
                    proposed rule changes pursuant to section 19(b)
                    of this title, except that--
                                ``(i) such exchange shall file
                            proposed rule changes related to higher
                            margin levels, fraud or manipulation,
                            recordkeeping, reporting, listing
                            standards, or decimal pricing for
                            security futures products, sales
                            practices for security futures products
                            for persons who effect transactions in
                            security futures products, or rules
                            effectuating such exchange's obligation
                            to enforce the securities laws pursuant
                            to section 19(b)(7);
                                ``(ii) such exchange shall file
                            pursuant to sections 19(b)(1) and
                            19(b)(2) proposed rule changes related
                            to margin, except for changes resulting
                            in higher margin levels; and
                                ``(iii) such exchange shall file
                            pursuant to section 19(b)(1) proposed
                            rule changes that have been abrogated
                            by the Commission pursuant to section
                            19(b)(7)(C).
                ``(5) Trading in security futures products.--
                        ``(A) In general.--Subject to subparagraph
                    (B), it shall be unlawful for any person to
                    execute or trade a security futures product
                    until the later of--
                                ``(i) 1 year after the date of
                            enactment of the Commodity Futures
                            Modernization Act of 2000; or
                                ``(ii) such date that a futures
                            association registered under section 17
                            of the Commodity Exchange Act has met
                            the requirements set forth in section
                            15A(k)(2) of this title.
                        ``(B) Principal-to-principal
                    transactions.--Notwithstanding subparagraph
                    (A), a person may execute or trade a security
                    futures product transaction if--
                                ``(i) the transaction is entered
                            into--
                                        ``(I) on a principal-to-
                                    principal basis between parties
                                    trading for their own accounts
                                    or as described in section
                                    1a(12)(B)(ii) of the Commodity
                                    Exchange Act; and
                                        ``(II) only between
                                    eligible contract participants
                                    (as defined in subparagraphs
                                    (A), (B)(ii), and (C) of such
                                    section 1a(12)) at the time at
                                    which the persons enter into
                                    the agreement, contract, or
                                    transaction; and
                                ``(ii) the transaction is entered
                            into on or after the later of--
                                        ``(I) 8 months after the
                                    date of enactment of the
                                    Commodity Futures Modernization
                                    Act of 2000; or
                                        ``(II) such date that a
                                    futures association registered
                                    under section 17 of the
                                    Commodity Exchange Act has met
                                    the requirements set forth in
                                    section 15A(k)(2) of this
                                    title.''.
        (b) Commission Review of Proposed Rule Changes.--
                (1) Expedited review.--Section 19(b) of the
            Securities Exchange Act of 1934 (15 U.S.C. 78s(b)) is
            amended by adding at the end the following:
                ``(7) Security futures product rule changes.--
                        ``(A) Filing required.--A self-regulatory
                    organization that is an exchange registered
                    with the Commission pursuant to section 6(g) of
                    this title or that is a national securities
                    association registered pursuant to section
                    15A(k) of this title shall file with the
                    Commission, in accordance with such rules as
                    the Commission may prescribe, copies of any
                    proposed rule change or any proposed change in,
                    addition to, or deletion from the rules of such
                    self-regulatory organization (hereinafter in
                    this paragraph collectively referred to as a
                    `proposed rule change') that relates to higher
                    margin levels, fraud or manipulation,
                    recordkeeping, reporting, listing standards, or
                    decimal pricing for security futures products,
                    sales practices for security futures products
                    for persons who effect transactions in security
                    futures products, or rules effectuating such
                    self-regulatory organization's obligation to
                    enforce the securities laws. Such proposed rule
                    change shall be accompanied by a concise
                    general statement of the basis and purpose of
                    such proposed rule change. The Commission
                    shall, upon the filing of any proposed rule
                    change, promptly publish notice thereof
                    together with the terms of substance of the
                    proposed rule change or a description of the
                    subjects and issues involved. The Commission
                    shall give interested persons an opportunity to
                    submit data, views, and arguments concerning
                    such proposed rule change.
                        ``(B) Filing with cftc.--A proposed rule
                    change filed with the Commission pursuant to
                    subparagraph (A) shall be filed concurrently
                    with the Commodity Futures Trading Commission.
                    Such proposed rule change may take effect upon
                    filing of a written certification with the
                    Commodity Futures Trading Commission under
                    section 5c(c) of the Commodity Exchange Act,
                    upon a determination by the Commodity Futures
                    Trading Commission that review of the proposed
                    rule change is not necessary, or upon approval
                    of the proposed rule change by the Commodity
                    Futures Trading Commission.
                        ``(C) Abrogation of rule changes.--Any
                    proposed rule change of a self-regulatory
                    organization that has taken effect pursuant to
                    subparagraph (B) may be enforced by such self-
                    regulatory organization to the extent such rule
                    is not inconsistent with the provisions of this
                    title, the rules and regulations thereunder,
                    and applicable Federal law. At any time within
                    60 days of the date of the filing of a written
                    certification with the Commodity Futures
                    Trading Commission under section 5c(c) of the
                    Commodity Exchange Act, the date the Commodity
                    Futures Trading Commission determines that
                    review of such proposed rule change is not
                    necessary, or the date the Commodity Futures
                    Trading Commission approves such proposed rule
                    change, the Commission, after consultation with
                    the Commodity Futures Trading Commission, may
                    summarily abrogate the proposed rule change and
                    require that the proposed rule change be
                    refiled in accordance with the provisions of
                    paragraph (1), if it appears to the Commission
                    that such proposed rule change unduly burdens
                    competition or efficiency, conflicts with the
                    securities laws, or is inconsistent with the
                    public interest and the protection of
                    investors. Commission action pursuant to the
                    preceding sentence shall not affect the
                    validity or force of the rule change during the
                    period it was in effect and shall not be
                    reviewable under section 25 of this title nor
                    deemed to be a final agency action for purposes
                    of section 704 of title 5, United States Code.
                        ``(D) Review of resubmitted abrogated
                    rules.--
                                ``(i) Proceedings.--Within 35 days
                            of the date of publication of notice of
                            the filing of a proposed rule change
                            that is abrogated in accordance with
                            subparagraph (C) and refiled in
                            accordance with paragraph (1), or
                            within such longer period as the
                            Commission may designate up to 90 days
                            after such date if the Commission finds
                            such longer period to be appropriate
                            and publishes its reasons for so
                            finding or as to which the self-
                            regulatory organization consents, the
                            Commission shall--
                                        ``(I) by order approve such
                                    proposed rule change; or
                                        ``(II) after consultation
                                    with the Commodity Futures
                                    Trading Commission, institute
                                    proceedings to determine
                                    whether the proposed rule
                                    change should be disapproved.
                                    Proceedings under subclause
                                    (II) shall include notice of
                                    the grounds for disapproval
                                    under consideration and
                                    opportunity for hearing and be
                                    concluded within 180 days after
                                    the date of publication of
                                    notice of the filing of the
                                    proposed rule change. At the
                                    conclusion of such proceedings,
                                    the Commission, by order, shall
                                    approve or disapprove such
                                    proposed rule change. The
                                    Commission may extend the time
                                    for conclusion of such
                                    proceedings for up to 60 days
                                    if the Commission finds good
                                    cause for such extension and
                                    publishes its reasons for so
                                    finding or for such longer
                                    period as to which the self-
                                    regulatory organization
                                    consents.
                                ``(ii) Grounds for approval.--The
                            Commission shall approve a proposed
                            rule change of a self-regulatory
                            organization under this subparagraph if
                            the Commission finds that such proposed
                            rule change does not unduly burden
                            competition or efficiency, does not
                            conflict with the securities laws, and
                            is not inconsistent with the public
                            interest or the protection of
                            investors. The Commission shall
                            disapprove such a proposed rule change
                            of a self-regulatory organization if it
                            does not make such finding. The
                            Commission shall not approve any
                            proposed rule change prior to the 30th
                            day after the date of publication of
                            notice of the filing thereof, unless
                            the Commission finds good cause for so
                            doing and publishes its reasons for so
                            finding.''.
                (2) Decimal pricing provisions.--Section 19(b) of
            the Securities Exchange Act of 1934 (15 U.S.C. 78s(b))
            is amended by inserting after paragraph (7), as added
            by paragraph (1), the following:
                ``(8) Decimal pricing.--Not later than 9 months
            after the date on which trading in any security futures
            product commences under this title, all self-regulatory
            organizations listing or trading security futures
            products shall file proposed rule changes necessary to
            implement decimal pricing of security futures products.
            The Commission may not require such rules to contain
            equal minimum increments in such decimal pricing.''.
                (3) Consultation provisions.--Section 19(b) of the
            Securities Exchange Act of 1934 (15 U.S.C. 78s(b)) is
            amended by inserting after paragraph (8), as added by
            paragraph (2), the following:
                ``(9) Consultation with cftc.--
                        ``(A) Consultation required.--The
                    Commission shall consult with and consider the
                    views of the Commodity Futures Trading
                    Commission prior to approving or disapproving a
                    proposed rule change filed by a national
                    securities association registered pursuant to
                    section 15A(a) or a national securities
                    exchange subject to the provisions of
                    subsection (a) that primarily concerns conduct
                    related to transactions in security futures
                    products, except where the Commission
                    determines that an emergency exists requiring
                    expeditious or summary action and publishes its
                    reasons therefor.
                        ``(B) Responses to cftc comments and
                    findings.--If the Commodity Futures Trading
                    Commission comments in writing to the
                    Commission on a proposed rule that has been
                    published for comment, the Commission shall
                    respond in writing to such written comment
                    before approving or disapproving the proposed
                    rule. If the Commodity Futures Trading
                    Commission determines, and notifies the
                    Commission, that such rule, if implemented or
                    as applied, would--
                                ``(i) adversely affect the
                            liquidity or efficiency of the market
                            for security futures products; or
                                ``(ii) impose any burden on
                            competition not necessary or
                            appropriate in furtherance of the
                            purposes of this section,
                    the Commission shall, prior to approving or
                    disapproving the proposed rule, find that such
                    rule is necessary and appropriate in
                    furtherance of the purposes of this section
                    notwithstanding the Commodity Futures Trading
                    Commission's determination.''.
        (c) Review of Disciplinary Proceedings.--Section 19(d) of
    the Securities Exchange Act of 1934 (15 U.S.C. 78s(d)) is
    amended by adding at the end the following:
        ``(3) The provisions of this subsection shall apply to an
    exchange registered pursuant to section 6(g) of this title or a
    national securities association registered pursuant to section
    15A(k) of this title only to the extent that such exchange or
    association imposes any final disciplinary sanction for--
                ``(A) a violation of the Federal securities laws or
            the rules and regulations thereunder; or
                ``(B) a violation of a rule of such exchange or
            association, as to which a proposed change would be
            required to be filed under section 19 of this title,
            except that, to the extent that the exchange or
            association rule violation relates to any account,
            agreement, contract, or transaction, this subsection
            shall apply only to the extent such violation involves
            a security futures product.''.

    SEC. 203. REGULATORY RELIEF FOR INTERMEDIARIES TRADING SECURITY FUTURES
                        PRODUCTS.

        (a) Expedited Registration and Exemptions.--
                (1) Amendment.--Section 15(b) of the Securities
            Exchange Act of 1934 (15 U.S.C. 78o(b)) is amended by
            adding at the end the following:
                ``(11) Broker/dealer registration with respect to
            transactions in security futures products.--
                        ``(A) Notice registration.--
                                ``(i) Contents of notice.--
                            Notwithstanding paragraphs (1) and (2),
                            a broker or dealer required to register
                            only because it effects transactions in
                            security futures products on an
                            exchange registered pursuant to section
                            6(g) may register for purposes of this
                            section by filing with the Commission a
                            written notice in such form and
                            containing such information concerning
                            such broker or dealer and any persons
                            associated with such broker or dealer
                            as the Commission, by rule, may
                            prescribe as necessary or appropriate
                            in the public interest or for the
                            protection of investors. A broker or
                            dealer may not register under this
                            paragraph unless that broker or dealer
                            is a member of a national securities
                            association registered under section
                            15A(k).
                                ``(ii) Immediate effectiveness.--
                            Such registration shall be effective
                            contemporaneously with the submission
                            of notice, in written or electronic
                            form, to the Commission, except that
                            such registration shall not be
                            effective if the registration would be
                            subject to suspension or revocation
                            under paragraph (4).
                                ``(iii) Suspension.--Such
                            registration shall be suspended
                            immediately if a national securities
                            association registered pursuant to
                            section 15A(k) of this title suspends
                            the membership of that broker or
                            dealer.
                                ``(iv) Termination.--Such
                            registration shall be terminated
                            immediately if any of the above stated
                            conditions for registration set forth
                            in this paragraph are no longer
                            satisfied.
                        ``(B) Exemptions for registered brokers and
                    dealers.--A broker or dealer registered
                    pursuant to the requirements of subparagraph
                    (A) shall be exempt from the following
                    provisions of this title and the rules
                    thereunder with respect to transactions in
                    security futures products:
                                ``(i) Section 8.
                                ``(ii) Section 11.
                                ``(iii) Subsections (c)(3) and
                            (c)(5) of this section.
                                ``(iv) Section 15B.
                                ``(v) Section 15C.
                                ``(vi) Subsections (d), (e), (f),
                            (g), (h), and (i) of section 17.''.
                (2) Conforming amendment.--Section 28(e) of the
            Securities Exchange Act of 1934 (15 U.S.C. 78bb(e)) is
            amended by adding at the end the following:
        ``(4) The provisions of this subsection shall not apply
    with regard to securities that are security futures
    products.''.
        (b) Floor Brokers and Floor Traders.--Section 15(b) of the
    Securities Exchange Act of 1934 (15 U.S.C. 78o(b)) is amended
    by inserting after paragraph (11), as added by subsection (a),
    the following:
                ``(12) Exemption for security futures product
            exchange members.--
                        ``(A) Registration exemption.--A natural
                    person shall be exempt from the registration
                    requirements of this section if such person--
                                ``(i) is a member of a designated
                            contract market registered with the
                            Commission as an exchange pursuant to
                            section 6(g);
                                ``(ii) effects transactions only in
                            securities on the exchange of which
                            such person is a member; and
                                ``(iii) does not directly accept or
                            solicit orders from public customers or
                            provide advice to public customers in
                            connection with the trading of security
                            futures products.
                        ``(B) Other exemptions.--A natural person
                    exempt from registration pursuant to
                    subparagraph (A) shall also be exempt from the
                    following provisions of this title and the
                    rules thereunder:
                                ``(i) Section 8.
                                ``(ii) Section 11.
                                ``(iii) Subsections (c)(3), (c)(5),
                            and (e) of this section.
                                ``(iv) Section 15B.
                                ``(v) Section 15C.
                                ``(vi) Subsections (d), (e), (f),
                            (g), (h), and (i) of section 17.''.
        (c) Limited Purpose National Securities Association.--
    Section 15A of the Securities Exchange Act of 1934 (15 U.S.C.
    78o-3) is amended by adding at the end the following:
        ``(k) Limited Purpose National Securities Association.--
                ``(1) Regulation of members with respect to
            security futures products.--A futures association
            registered under section 17 of the Commodity Exchange
            Act shall be a registered national securities
            association for the limited purpose of regulating the
            activities of members who are registered as brokers or
            dealers in security futures products pursuant to
            section 15(b)(11).
                ``(2) Requirements for registration.--Such a
            securities association shall--
                        ``(A) be so organized and have the capacity
                    to carry out the purposes of the securities
                    laws applicable to security futures products
                    and to comply, and (subject to any rule or
                    order of the Commission pursuant to section
                    19(g)(2)) to enforce compliance by its members
                    and persons associated with its members, with
                    the provisions of the securities laws
                    applicable to security futures products, the
                    rules and regulations thereunder, and its
                    rules;
                        ``(B) have rules that--
                                ``(i) are designed to prevent
                            fraudulent and manipulative acts and
                            practices, to promote just and
                            equitable principles of trade, and, in
                            general, to protect investors and the
                            public interest, including rules
                            governing sales practices and the
                            advertising of security futures
                            products reasonably comparable to those
                            of other national securities
                            associations registered pursuant to
                            subsection (a) that are applicable to
                            security futures products; and
                                ``(ii) are not designed to regulate
                            by virtue of any authority conferred by
                            this title matters not related to the
                            purposes of this title or the
                            administration of the association;
                        ``(C) have rules that provide that (subject
                    to any rule or order of the Commission pursuant
                    to section 19(g)(2)) its members and persons
                    associated with its members shall be
                    appropriately disciplined for violation of any
                    provision of the securities laws applicable to
                    security futures products, the rules or
                    regulations thereunder, or the rules of the
                    association, by expulsion, suspension,
                    limitation of activities, functions, and
                    operations, fine, censure, being suspended or
                    barred from being associated with a member, or
                    any other fitting sanction; and
                        ``(D) have rules that ensure that members
                    and natural persons associated with members
                    meet such standards of training, experience,
                    and competence necessary to effect transactions
                    in security futures products and are tested for
                    their knowledge of securities and security
                    futures products.
                ``(3) Exemption from rule change submission.--Such
            a securities association shall be exempt from
            submitting proposed rule changes pursuant to section
            19(b) of this title, except that--
                        ``(A) the association shall file proposed
                    rule changes related to higher margin levels,
                    fraud or manipulation, recordkeeping,
                    reporting, listing standards, or decimal
                    pricing for security futures products, sales
                    practices for, advertising of, or standards of
                    training, experience, competence, or other
                    qualifications for security futures products
                    for persons who effect transactions in security
                    futures products, or rules effectuating the
                    association's obligation to enforce the
                    securities laws pursuant to section 19(b)(7);
                        ``(B) the association shall file pursuant
                    to sections 19(b)(1) and 19(b)(2) proposed rule
                    changes related to margin, except for changes
                    resulting in higher margin levels; and
                        ``(C) the association shall file pursuant
                    to section 19(b)(1) proposed rule changes that
                    have been abrogated by the Commission pursuant
                    to section 19(b)(7)(C).
                ``(4) Other exemptions.--Such a securities
            association shall be exempt from and shall not be
            required to enforce compliance by its members, and its
            members shall not, solely with respect to their
            transactions effected in security futures products, be
            required to comply, with the following provisions of
            this title and the rules thereunder:
                        ``(A) Section 8.
                        ``(B) Subsections (b)(1), (b)(3), (b)(4),
                    (b)(5), (b)(8), (b)(10), (b)(11), (b)(12),
                    (b)(13), (c), (d), (e), (f), (g), (h), and (i)
                    of this section.
                        ``(C) Subsections (d), (f), and (k) of
                    section 17.
                        ``(D) Subsections (a), (f), and (h) of
                    section 19.''.
        (d) Exemption Under the Securities Investor Protection Act
    of 1970.--
                (1) Section 16(14) of the Securities Investor
            Protection Act of 1970 (15 U.S.C. 78lll(14)) is amended
            by inserting ``or any security future as that term is
            defined in section 3(a)(55)(A) of the Securities
            Exchange Act of 1934,'' after ``certificate of deposit
            for a security,''.
                (2) Section 3(a)(2)(A) of the Securities Investor
            Protection Act of 1970 (15 U.S.C. 78ccc(a)(2)(A)) is
            amended--
                        (A) in clause (i), by striking ``and''
                    after the semicolon;
                        (B) in clause (ii), by striking the period
                    and inserting ``; and''; and
                        (C) by adding at the end the following:
                                ``(iii) persons who are registered
                            as a broker or dealer pursuant to
                            section 15(b)(11)(A) of the Securities
                            Exchange Act of 1934.''.

    SEC. 204. SPECIAL PROVISIONS FOR INTERAGENCY COOPERATION.

        Section 17(b) of the Securities Exchange Act of 1934 (15
    U.S.C. 78q(b)) is amended--
                (1) by striking ``(b) All'' and inserting the
            following:
        ``(b) Records Subject to Examination.--
                ``(1) Procedures for cooperation with other
            agencies.--All'';
                (2) by striking ``prior to conducting any such
            examination of a registered clearing'' and inserting
            the following: ``prior to conducting any such
            examination of a--
                        ``(A) registered clearing'';
                (3) by redesignating the last sentence as paragraph
            (4)(C);
                (4) by striking the period at the end of the first
            sentence and inserting the following: ``; or
                        ``(B) broker or dealer registered pursuant
                    to section 15(b)(11), exchange registered
                    pursuant to section 6(g), or national
                    securities association registered pursuant to
                    section 15A(k) gives notice to the Commodity
                    Futures Trading Commission of such proposed
                    examination and consults with the Commodity
                    Futures Trading Commission concerning the
                    feasibility and desirability of coordinating
                    such examination with examinations conducted by
                    the Commodity Futures Trading Commission in
                    order to avoid unnecessary regulatory
                    duplication or undue regulatory burdens for
                    such broker or dealer or exchange.'';
                (5) by adding at the end the following new
            paragraphs:
                ``(2) Furnishing data and reports to cftc.--The
            Commission shall notify the Commodity Futures Trading
            Commission of any examination conducted of any broker
            or dealer registered pursuant to section 15(b)(11),
            exchange registered pursuant to section 6(g), or
            national securities association registered pursuant to
            section 15A(k) and, upon request, furnish to the
            Commodity Futures Trading Commission any examination
            report and data supplied to, or prepared by, the
            Commission in connection with such examination.
                ``(3) Use of cftc reports.--Prior to conducting an
            examination under paragraph (1), the Commission shall
            use the reports of examinations, if the information
            available therein is sufficient for the purposes of the
            examination, of--
                        ``(A) any broker or dealer registered
                    pursuant to section 15(b)(11);
                        ``(B) exchange registered pursuant to
                    section 6(g); or
                        ``(C) national securities association
                    registered pursuant to section 15A(k);
            that is made by the Commodity Futures Trading
            Commission, a national securities association
            registered pursuant to section 15A(k), or an exchange
            registered pursuant to section 6(g).
                ``(4) Rules of construction.--
                        ``(A) Notwithstanding any other provision
                    of this subsection, the records of a broker or
                    dealer registered pursuant to section
                    15(b)(11), an exchange registered pursuant to
                    section 6(g), or a national securities
                    association registered pursuant to section
                    15A(k) described in this subparagraph shall not
                    be subject to routine periodic examinations by
                    the Commission.
                        ``(B) Any recordkeeping rules adopted under
                    this subsection for a broker or dealer
                    registered pursuant to section 15(b)(11), an
                    exchange registered pursuant to section 6(g),
                    or a national securities association registered
                    pursuant to section 15A(k) shall be limited to
                    records with respect to persons, accounts,
                    agreements, contracts, and transactions
                    involving security futures products.''; and
                (6) in paragraph (4)(C) (as redesignated by
            paragraph (3) of this section), by striking ``Nothing
            in the proviso to the preceding sentence'' and
            inserting ``Nothing in the proviso in paragraph (1)''.

    SEC. 205. MAINTENANCE OF MARKET INTEGRITY FOR SECURITY FUTURES
                        PRODUCTS.

        (a) Addition of Security Futures Products to Option-
    Specific Enforcement Provisions.--
                (1) Prohibition against manipulation.--Section 9(b)
            of the Securities Exchange Act of 1934 (15 U.S.C.
            78i(b)) is amended--
                        (A) in paragraph (1)--
                                (i) by inserting ``(A)'' after
                            ``acquires''; and
                                (ii) by striking ``; or'' and
                            inserting ``; or (B) any security
                            futures product on the security; or'';
                        (B) in paragraph (2)--
                                (i) by inserting ``(A)'' after
                            ``interest in any''; and
                                (ii) by striking ``; or'' and
                            inserting ``; or (B) such security
                            futures product; or''; and
                        (C) in paragraph (3)--
                                (i) by inserting ``(A)'' after
                            ``interest in any''; and
                                (ii) by inserting ``; or (B) such
                            security futures product'' after
                            ``privilege''.
                (2) Manipulation in options and other derivative
            products.--Section 9(g) of the Securities Exchange Act
            of 1934 (15 U.S.C. 78i(g)) is amended--
                        (A) by inserting ``(1)'' after ``(g)'';
                        (B) by inserting ``other than a security
                    futures product'' after ``future delivery'';
                    and
                        (C) by adding at the end following:
        ``(2) Notwithstanding the Commodity Exchange Act, the
    Commission shall have the authority to regulate the trading of
    any security futures product to the extent provided in the
    securities laws.''.
                (3) Liability of controlling persons and persons
            who aid and abet violations.--Section 20(d) of the
            Securities Exchange Act of 1934 (15 U.S.C. 78t(d)) is
            amended by striking ``or privilege'' and inserting ``,
            privilege, or security futures product''.
                (4) Liability to contemporaneous traders for
            insider trading.--Section 21A(a)(1) of the Securities
            Exchange Act of 1934 (15 U.S.C. 78u-1(a)(1)) is amended
            by striking ``standardized options, the Commission--''
            and inserting ``standardized options or security
            futures products, the Commission--''.
                (5) Enforcement consultation.--Section 21 of the
            Securities Exchange Act of 1934 (15 U.S.C. 78u) is
            amended by adding at the end the following:
        ``(i) Information to CFTC.--The Commission shall provide
    the Commodity Futures Trading Commission with notice of the
    commencement of any proceeding and a copy of any order entered
    by the Commission against any broker or dealer registered
    pursuant to section 15(b)(11), any exchange registered pursuant
    to section 6(g), or any national securities association
    registered pursuant to section 15A(k).''.

    SEC. 206. SPECIAL PROVISIONS FOR THE TRADING OF SECURITY FUTURES
                        PRODUCTS.

        (a) Listing Standards and Conditions for Trading.--Section
    6 of the Securities Exchange Act of 1934 (15 U.S.C. 78f) is
    amended by inserting after subsection (g), as added by section
    202, the following:
        ``(h) Trading in Security Futures Products.--
                ``(1) Trading on exchange or association
            required.--It shall be unlawful for any person to
            effect transactions in security futures products that
            are not listed on a national securities exchange or a
            national securities association registered pursuant to
            section 15A(a).
                ``(2) Listing standards required.--Except as
            otherwise provided in paragraph (7), a national
            securities exchange or a national securities
            association registered pursuant to section 15A(a) may
            trade only security futures products that (A) conform
            with listing standards that such exchange or
            association files with the Commission under section
            19(b) and (B) meet the criteria specified in section
            2(a)(1)(D)(i) of the Commodity Exchange Act.
                ``(3) Requirements for listing standards and
            conditions for trading.--Such listing standards shall--
                        ``(A) except as otherwise provided in a
                    rule, regulation, or order issued pursuant to
                    paragraph (4), require that any security
                    underlying the security future, including each
                    component security of a narrow-based security
                    index, be registered pursuant to section 12 of
                    this title;
                        ``(B) require that if the security futures
                    product is not cash settled, the market on
                    which the security futures product is traded
                    have arrangements in place with a registered
                    clearing agency for the payment and delivery of
                    the securities underlying the security futures
                    product;
                        ``(C) be no less restrictive than
                    comparable listing standards for options traded
                    on a national securities exchange or national
                    securities association registered pursuant to
                    section 15A(a) of this title;
                        ``(D) except as otherwise provided in a
                    rule, regulation, or order issued pursuant to
                    paragraph (4), require that the security future
                    be based upon common stock and such other
                    equity securities as the Commission and the
                    Commodity Futures Trading Commission jointly
                    determine appropriate;
                        ``(E) require that the security futures
                    product is cleared by a clearing agency that
                    has in place provisions for linked and
                    coordinated clearing with other clearing
                    agencies that clear security futures products,
                    which permits the security futures product to
                    be purchased on one market and offset on
                    another market that trades such product;
                        ``(F) require that only a broker or dealer
                    subject to suitability rules comparable to
                    those of a national securities association
                    registered pursuant to section 15A(a) effect
                    transactions in the security futures product;
                        ``(G) require that the security futures
                    product be subject to the prohibition against
                    dual trading in section 4j of the Commodity
                    Exchange Act (7 U.S.C. 6j) and the rules and
                    regulations thereunder or the provisions of
                    section 11(a) of this title and the rules and
                    regulations thereunder, except to the extent
                    otherwise permitted under this title and the
                    rules and regulations thereunder;
                        ``(H) require that trading in the security
                    futures product not be readily susceptible to
                    manipulation of the price of such security
                    futures product, nor to causing or being used
                    in the manipulation of the price of any
                    underlying security, option on such security,
                    or option on a group or index including such
                    securities;
                        ``(I) require that procedures be in place
                    for coordinated surveillance among the market
                    on which the security futures product is
                    traded, any market on which any security
                    underlying the security futures product is
                    traded, and other markets on which any related
                    security is traded to detect manipulation and
                    insider trading;
                        ``(J) require that the market on which the
                    security futures product is traded has in place
                    audit trails necessary or appropriate to
                    facilitate the coordinated surveillance
                    required in subparagraph (I);
                        ``(K) require that the market on which the
                    security futures product is traded has in place
                    procedures to coordinate trading halts between
                    such market and any market on which any
                    security underlying the security futures
                    product is traded and other markets on which
                    any related security is traded; and
                        ``(L) require that the margin requirements
                    for a security futures product comply with the
                    regulations prescribed pursuant to section
                    7(c)(2)(B), except that nothing in this
                    subparagraph shall be construed to prevent a
                    national securities exchange or national
                    securities association from requiring higher
                    margin levels for a security futures product
                    when it deems such action to be necessary or
                    appropriate.
                ``(4) Authority to modify certain listing standard
            requirements.--
                        ``(A) Authority to modify.--The Commission
                    and the Commodity Futures Trading Commission,
                    by rule, regulation, or order, may jointly
                    modify the listing standard requirements
                    specified in subparagraph (A) or (D) of
                    paragraph (3) to the extent such modification
                    fosters the development of fair and orderly
                    markets in security futures products, is
                    necessary or appropriate in the public
                    interest, and is consistent with the protection
                    of investors.
                        ``(B) Authority to grant exemptions.--The
                    Commission and the Commodity Futures Trading
                    Commission, by order, may jointly exempt any
                    person from compliance with the listing
                    standard requirement specified in subparagraph
                    (E) of paragraph (3) to the extent such
                    exemption fosters the development of fair and
                    orderly markets in security futures products,
                    is necessary or appropriate in the public
                    interest, and is consistent with the protection
                    of investors.
                ``(5) Requirements for other persons trading
            security future products.--It shall be unlawful for any
            person (other than a national securities exchange or a
            national securities association registered pursuant to
            section 15A(a)) to constitute, maintain, or provide a
            marketplace or facilities for bringing together
            purchasers and sellers of security future products or
            to otherwise perform with respect to security future
            products the functions commonly performed by a stock
            exchange as that term is generally understood, unless a
            national securities association registered pursuant to
            section 15A(a) or a national securities exchange of
            which such person is a member--
                        ``(A) has in place procedures for
                    coordinated surveillance among such person, the
                    market trading the securities underlying the
                    security future products, and other markets
                    trading related securities to detect
                    manipulation and insider trading;
                        ``(B) has rules to require audit trails
                    necessary or appropriate to facilitate the
                    coordinated surveillance required in
                    subparagraph (A); and
                        ``(C) has rules to require such person to
                    coordinate trading halts with markets trading
                    the securities underlying the security future
                    products and other markets trading related
                    securities.
                ``(6) Deferral of options on security futures
            trading.--No person shall offer to enter into, enter
            into, or confirm the execution of any put, call,
            straddle, option, or privilege on a security future,
            except that, after 3 years after the date of enactment
            of this subsection, the Commission and the Commodity
            Futures Trading Commission may by order jointly
            determine to permit trading of puts, calls, straddles,
            options, or privileges on any security future
            authorized to be traded under the provisions of this
            Act and the Commodity Exchange Act.
                ``(7) Deferral of linked and coordinated
            clearing.--
                        ``(A) Notwithstanding paragraph (2), until
                    the compliance date, a national securities
                    exchange or national securities association
                    registered pursuant to section 15A(a) may trade
                    a security futures product that does not--
                                ``(i) conform with any listing
                            standard promulgated to meet the
                            requirement specified in subparagraph
                            (E) of paragraph (3); or
                                ``(ii) meet the criterion specified
                            in section 2(a)(1)(D)(i)(IV) of the
                            Commodity Exchange Act.
                        ``(B) The Commission and the Commodity
                    Futures Trading Commission shall jointly
                    publish in the Federal Register a notice of the
                    compliance date no later than 165 days before
                    the compliance date.
                        ``(C) For purposes of this paragraph, the
                    term `compliance date' means the later of--
                                ``(i) 180 days after the end of the
                            first full calendar month period in
                            which the average aggregate comparable
                            share volume for all security futures
                            products based on single equity
                            securities traded on all national
                            securities exchanges, any national
                            securities associations registered
                            pursuant to section 15A(a), and all
                            other persons equals or exceeds 10
                            percent of the average aggregate
                            comparable share volume of options on
                            single equity securities traded on all
                            national securities exchanges and any
                            national securities associations
                            registered pursuant to section 15A(a);
                            or
                                ``(ii) 2 years after the date on
                            which trading in any security futures
                            product commences under this title.''.
        (b) Margin.--Section 7 of the Securities Exchange Act of
    1934 (15 U.S.C. 78g) is amended--
                (1) in subsection (a), by inserting ``or a security
            futures product'' after ``exempted security'';
                (2) in subsection (c)(1)(A), by inserting ``except
            as provided in paragraph (2),'' after ``security),'';
                (3) by redesignating paragraph (2) of subsection
            (c) as paragraph (3) of such subsection; and
                (4) by inserting after paragraph (1) of such
            subsection the following:
                ``(2) Margin regulations.--
                        ``(A) Compliance with margin rules
                    required.--It shall be unlawful for any broker,
                    dealer, or member of a national securities
                    exchange to, directly or indirectly, extend or
                    maintain credit to or for, or collect margin
                    from any customer on, any security futures
                    product unless such activities comply with the
                    regulations--
                                ``(i) which the Board shall
                            prescribe pursuant to subparagraph (B);
                            or
                                ``(ii) if the Board determines to
                            delegate the authority to prescribe
                            such regulations, which the Commission
                            and the Commodity Futures Trading
                            Commission shall jointly prescribe
                            pursuant to subparagraph (B).
                    If the Board delegates the authority to
                    prescribe such regulations under clause (ii)
                    and the Commission and the Commodity Futures
                    Trading Commission have not jointly prescribed
                    such regulations within a reasonable period of
                    time after the date of such delegation, the
                    Board shall prescribe such regulations pursuant
                    to subparagraph (B).
                        ``(B) Criteria for issuance of rules.--The
                    Board shall prescribe, or, if the authority is
                    delegated pursuant to subparagraph (A)(ii), the
                    Commission and the Commodity Futures Trading
                    Commission shall jointly prescribe, such
                    regulations to establish margin requirements,
                    including the establishment of levels of margin
                    (initial and maintenance) for security futures
                    products under such terms, and at such levels,
                    as the Board deems appropriate, or as the
                    Commission and the Commodity Futures Trading
                    Commission jointly deem appropriate--
                                ``(i) to preserve the financial
                            integrity of markets trading security
                            futures products;
                                ``(ii) to prevent systemic risk;
                                ``(iii) to require that--
                                        ``(I) the margin
                                    requirements for a security
                                    future product be consistent
                                    with the margin requirements
                                    for comparable option contracts
                                    traded on any exchange
                                    registered pursuant to section
                                    6(a) of this title; and
                                        ``(II) initial and
                                    maintenance margin levels for a
                                    security future product not be
                                    lower than the lowest level of
                                    margin, exclusive of premium,
                                    required for any comparable
                                    option contract traded on any
                                    exchange registered pursuant to
                                    section 6(a) of this title,
                                    other than an option on a
                                    security future;
                            except that nothing in this
                            subparagraph shall be construed to
                            prevent a national securities exchange
                            or national securities association from
                            requiring higher margin levels for a
                            security future product when it deems
                            such action to be necessary or
                            appropriate; and
                                ``(iv) to ensure that the margin
                            requirements (other than levels of
                            margin), including the type, form, and
                            use of collateral for security futures
                            products, are and remain consistent
                            with the requirements established by
                            the Board, pursuant to subparagraphs
                            (A) and (B) of paragraph (1).''.
        (c) Incorporation of Security Futures Products Into the
    National Market System.--Section 11A of the Securities Exchange
    Act of 1934 (15 U.S.C. 78k-1) is amended by adding at the end
    the following:
        ``(e) National Markets System for Security Futures
    Products.--
                ``(1) Consultation and cooperation required.--With
            respect to security futures products, the Commission
            and the Commodity Futures Trading Commission shall
            consult and cooperate so that, to the maximum extent
            practicable, their respective regulatory
            responsibilities may be fulfilled and the rules and
            regulations applicable to security futures products may
            foster a national market system for security futures
            products if the Commission and the Commodity Futures
            Trading Commission jointly determine that such a system
            would be consistent with the congressional findings in
            subsection (a)(1). In accordance with this objective,
            the Commission shall, at least 15 days prior to the
            issuance for public comment of any proposed rule or
            regulation under this section concerning security
            futures products, consult and request the views of the
            Commodity Futures Trading Commission.
                ``(2) Application of rules by order of cftc.--No
            rule adopted pursuant to this section shall be applied
            to any person with respect to the trading of security
            futures products on an exchange that is registered
            under section 6(g) unless the Commodity Futures Trading
            Commission has issued an order directing that such rule
            is applicable to such persons.''.
        (d) Incorporation of Security Futures Products Into the
    National System for Clearance and Settlement.--Section 17A(b)
    of the Securities Exchange Act of 1934 (15 U.S.C. 78q-1(b)) is
    amended by adding at the end the following:
        ``(7)(A) A clearing agency that is regulated directly or
    indirectly by the Commodity Futures Trading Commission through
    its association with a designated contract market for security
    futures products that is a national securities exchange
    registered pursuant to section 6(g), and that would be required
    to register pursuant to paragraph (1) of this subsection only
    because it performs the functions of a clearing agency with
    respect to security futures products effected pursuant to the
    rules of the designated contract market with which such agency
    is associated, is exempted from the provisions of this section
    and the rules and regulations thereunder, except that if such a
    clearing agency performs the functions of a clearing agency
    with respect to a security futures product that is not cash
    settled, it must have arrangements in place with a registered
    clearing agency to effect the payment and delivery of the
    securities underlying the security futures product.
        ``(B) Any clearing agency that performs the functions of a
    clearing agency with respect to security futures products must
    coordinate with and develop fair and reasonable links with any
    and all other clearing agencies that perform the functions of a
    clearing agency with respect to security futures products, in
    order to permit, as of the compliance date (as defined in
    section 6(h)(6)(C)), security futures products to be purchased
    on one market and offset on another market that trades such
    products.''.
        (e) Market Emergency Powers and Circuit Breakers.--Section
    12(k) of the Securities Exchange Act of 1934 (15 U.S.C. 78l(k))
    is amended--
                (1) in paragraph (1), by adding at the end the
            following: ``If the actions described in subparagraph
            (A) or (B) involve a security futures product, the
            Commission shall consult with and consider the views of
            the Commodity Futures Trading Commission.''; and
                (2) in paragraph (2)(B), by inserting after the
            first sentence the following: ``If the actions
            described in subparagraph (A) involve a security
            futures product, the Commission shall consult with and
            consider the views of the Commodity Futures Trading
            Commission.''.
        (f) Transaction Fees.--Section 31 of the Securities
    Exchange Act of 1934 (15 U.S.C. 78ee) is amended--
                (1) in subsection (a), by inserting ``and
            assessments'' after ``fees'';
                (2) in subsections (b), (c), and (d)(1), by
            striking ``and other evidences of indebtedness'' and
            inserting ``other evidences of indebtedness, and
            security futures products'';
                (3) in subsection (f), by inserting ``or
            assessment'' after ``fee'';
                (4) in subsection (g), by inserting ``and
            assessment'' after ``fee'';
                (5) by redesignating subsections (e), (f), and (g)
            as subsections (f), (g), and (h), respectively; and
                (6) by inserting after subsection (d) the following
            new subsection:
        ``(e) Assessments on Security Futures Transactions.--Each
    national securities exchange and national securities
    association shall pay to the Commission an assessment equal to
    $0.02 for each round turn transaction (treated as including one
    purchase and one sale of a contract of sale for future
    delivery) on a security future traded on such national
    securities exchange or by or through any member of such
    association otherwise than on a national securities exchange,
    except that for fiscal year 2007 or any succeeding fiscal year
    such assessment shall be equal to $0.0075 for each such
    transaction. Assessments collected pursuant to this subsection
    shall be deposited and collected as general revenue of the
    Treasury.''.
        (g) Exemption From Short Sale Provisions.--Section 10(a) of
    the Securities Exchange Act of 1934 (15 U.S.C 78j(a)) is
    amended--
                (1) by inserting ``(1)'' after ``(a)''; and
                (2) by adding at the end the following:
        ``(2) Paragraph (1) of this subsection shall not apply to
    security futures products.''.
        (h) Rulemaking Authority To Address Duplicative Regulation
    of Dual Registrants.--Section 15(c)(3) of the Securities
    Exchange Act of 1934 (15 U.S.C. 78o(c)(3))is amended--
                (1) by inserting ``(A)'' after ``(3)''; and
                (2) by adding at the end the following:
        ``(B) Consistent with this title, the Commission, in
    consultation with the Commodity Futures Trading Commission,
    shall issue such rules, regulations, or orders as are necessary
    to avoid duplicative or conflicting regulations applicable to
    any broker or dealer registered with the Commission pursuant to
    section 15(b) (except paragraph (11) thereof), that is also
    registered with the Commodity Futures Trading Commission
    pursuant to section 4f(a) of the Commodity Exchange Act (except
    paragraph (2) thereof), with respect to the application of (i)
    the provisions of section 8, section 15(c)(3), and section 17
    of this title and the rules and regulations thereunder related
    to the treatment of customer funds, securities, or property,
    maintenance of books and records, financial reporting, or other
    financial responsibility rules, involving security futures
    products and (ii) similar provisions of the Commodity Exchange
    Act and rules and regulations thereunder involving security
    futures products.''.
        (i) Obligation To Address Duplicative Regulation of Dual
    Registrants.--Section 6 of the Securities Exchange Act of 1934
    (15 U.S.C 78f) is amended by inserting after subsection (h), as
    added by subsection (a) of this section, the following:
        ``(i) Consistent with this title, each national securities
    exchange registered pursuant to subsection (a) of this section
    shall issue such rules as are necessary to avoid duplicative or
    conflicting rules applicable to any broker or dealer registered
    with the Commission pursuant to section 15(b) (except paragraph
    (11) thereof), that is also registered with the Commodity
    Futures Trading Commission pursuant to section 4f(a) of the
    Commodity Exchange Act (except paragraph (2) thereof), with
    respect to the application of--
                (1) rules of such national securities exchange of
            the type specified in section 15(c)(3)(B) involving
            security futures products; and
                (2) similar rules of national securities exchanges
            registered pursuant to section 6(g) and national
            securities associations registered pursuant to section
            15A(k) involving security futures products.''.
        (j) Obligation To Address Duplicative Regulation of Dual
    Registrants.--Section 15A of the Securities Exchange Act of
    1934 (15 U.S.C 78o-3) is amended by inserting after subsection
    (k), as added by section 203, the following:
        ``(l) Consistent with this title, each national securities
    association registered pursuant to subsection (a) of this
    section shall issue such rules as are necessary to avoid
    duplicative or conflicting rules applicable to any broker or
    dealer registered with the Commission pursuant to section 15(b)
    (except paragraph (11) thereof), that is also registered with
    the Commodity Futures Trading Commission pursuant to section
    4f(a) of the Commodity Exchange Act (except paragraph (2)
    thereof), with respect to the application of--
                ``(1) rules of such national securities association
            of the type specified in section 15(c)(3)(B) involving
            security futures products; and
                ``(2) similar rules of national securities
            associations registered pursuant to subsection (k) of
            this section and national securities exchanges
            registered pursuant to section 6(g) involving security
            futures products.''.
        (k) Obligation To Put in Place Procedures and Adopt
    Rules.--
                (1) National securities associations.--Section 15A
            of the Securities Exchange Act of 1934 (15 U.S.C. 78o-
            3) is amended by inserting after subsection (l), as
            added by subsection (j) of this section, the following
            new subsection:
        ``(m) Procedures and Rules for Security Future Products.--A
    national securities association registered pursuant to
    subsection (a) shall, not later than 8 months after the date of
    enactment of the Commodity Futures Modernization Act of 2000,
    implement the procedures specified in section 6(h)(5)(A) of
    this title and adopt the rules specified in subparagraphs (B)
    and (C) of section 6(h)(5) of this title.''.
                (2) National securities exchanges.--Section 6 of
            the Securities Exchange Act of 1934 (15 U.S.C. 78f) is
            amended by inserting after subsection (i), as added by
            subsection (i) of this section, the following new
            subsection:
        ``(j) Procedures and Rules for Security Future Products.--A
    national securities exchange registered pursuant to subsection
    (a) shall implement the procedures specified in section
    6(h)(5)(A) of this title and adopt the rules specified in
    subparagraphs (B) and (C) of section 6(h)(5) of this title not
    later than 8 months after the date of receipt of a request from
    an alternative trading system for such implementation and
    rules.''.
        (l) Obligation To Address Security Futures Products Traded
    on Foreign Exchanges.--Section 6 of the Securities Exchange Act
    of 1934 (15 U.S.C. 78f) is amended by adding after subsection
    (j), as added by subsection (k) of this section, the
    following--
        ``(k)(1) To the extent necessary or appropriate in the
    public interest, to promote fair competition, and consistent
    with the promotion of market efficiency, innovation, and
    expansion of investment opportunities, the protection of
    investors, and the maintenance of fair and orderly markets, the
    Commission and the Commodity Futures Trading Commission shall
    jointly issue such rules, regulations, or orders as are
    necessary and appropriate to permit the offer and sale of a
    security futures product traded on or subject to the rules of a
    foreign board of trade to United States persons.
        ``(2) The rules, regulations, or orders adopted under
    paragraph (1) shall take into account, as appropriate, the
    nature and size of the markets that the securities underlying
    the security futures product reflect.''.

    SEC. 207. CLEARANCE AND SETTLEMENT.

        Section 17A(b) of the Securities Exchange Act of 1934 (15
    U.S.C. 78q-1(b)) is amended--
                (1) in paragraph (3)(A), by inserting ``and
            derivative agreements, contracts, and transactions''
            after ``prompt and accurate clearance and settlement of
            securities transactions'';
                (2) in paragraph (3)(F), by inserting ``and, to the
            extent applicable, derivative agreements, contracts,
            and transactions'' after ``designed to promote the
            prompt and accurate clearance and settlement of
            securities transactions''; and
                (3) by inserting after paragraph (7), as added by
            section 206(d), the following:
        ``(8) A registered clearing agency shall be permitted to
    provide facilities for the clearance and settlement of any
    derivative agreements, contracts, or transactions that are
    excluded from the Commodity Exchange Act, subject to the
    requirements of this section and to such rules and regulations
    as the Commission may prescribe as necessary or appropriate in
    the public interest, for the protection of investors, or
    otherwise in furtherance of the purposes of this title.''.

    SEC. 208. AMENDMENTS RELATING TO REGISTRATION AND DISCLOSURE ISSUES
                        UNDER THE SECURITIES ACT OF 1933 AND THE SECURITIES
                        EXCHANGE ACT OF 1934.

        (a) Amendments to the Securities Act of 1933.--
                (1) Treatment of security futures products.--
            Section 2(a) of the Securities Act of 1933 (15 U.S.C.
            77b(a)) is amended--
                        (A) in paragraph (1), by inserting
                    ``security future,'' after ``treasury stock,'';
                        (B) in paragraph (3), by adding at the end
                    the following: ``Any offer or sale of a
                    security futures product by or on behalf of the
                    issuer of the securities underlying the
                    security futures product, an affiliate of the
                    issuer, or an underwriter, shall constitute a
                    contract for sale of, sale of, offer for sale,
                    or offer to sell the underlying securities.'';
                        (C) by adding at the end the following:
                ``(16) The terms `security future', `narrow-based
            security index', and `security futures product' have
            the same meanings as provided in section 3(a)(55) of
            the Securities Exchange Act of 1934.''.
                (2) Exemption from registration.--Section 3(a) of
            the Securities Act of 1933 (15 U.S.C. 77c(a)) is
            amended by adding at the end the following:
                ``(14) Any security futures product that is--
                        ``(A) cleared by a clearing agency
                    registered under section 17A of the Securities
                    Exchange Act of 1934 or exempt from
                    registration under subsection (b)(7) of such
                    section 17A; and
                        ``(B) traded on a national securities
                    exchange or a national securities association
                    registered pursuant to section 15A(a) of the
                    Securities Exchange Act of 1934.''.
                (3) Conforming amendment.--Section 12(a)(2) of the
            Securities Act of 1933 (15 U.S.C. 77l(a)(2)) is amended
            by striking ``paragraph (2)'' and inserting
            ``paragraphs (2) and (14)''.
        (b) Amendments to the Securities Exchange Act of 1934.--
                (1) Exemption from registration.--Section 12(a) of
            the Securities Exchange Act of 1934 (15 U.S.C. 78l(a))
            is amended by adding at the end the following: ``The
            provisions of this subsection shall not apply in
            respect of a security futures product traded on a
            national securities exchange.''.
                (2) Exemptions from reporting requirement.--Section
            12(g)(5) of the Securities Exchange Act of 1934 (15
            U.S.C. 78l(g)(5)) is amended by adding at the end the
            following: ``For purposes of this subsection, a
            security futures product shall not be considered a
            class of equity security of the issuer of the
            securities underlying the security futures product.''.
                (3) Transactions by corporate insiders.--Section 16
            of the Securities Exchange Act of 1934 (15 U.S.C. 78p)
            is amended by adding at the end the following:
        ``(f) Treatment of Transactions in Security Futures
    Products.--The provisions of this section shall apply to
    ownership of and transactions in security futures products.''.

    SEC. 209. AMENDMENTS TO THE INVESTMENT COMPANY ACT OF 1940 AND THE
                        INVESTMENT ADVISERS ACT OF 1940.

        (a) Definitions Under the Investment Company Act of 1940
    and the Investment Advisers Act of 1940.--
                (1) Section 2(a)(36) of the Investment Company Act
            of 1940 (15 U.S.C. 80a-2(a)(36)) is amended by
            inserting ``security future,'' after ``treasury
            stock,''.
                (2) Section 202(a)(18) of the Investment Advisers
            Act of 1940 (15 U.S.C. 80b-2(a)(18)) is amended by
            inserting ``security future,'' after ``treasury
            stock,''.
                (3) Section 2(a) of the Investment Company Act of
            1940 (15 U.S.C. 80a-2(a)) is amended by adding at the
            end the following:
                ``(52) The terms `security future' and `narrow-
            based security index' have the same meanings as
            provided in section 3(a)(55) of the Securities Exchange
            Act of 1934.''.
                (4) Section 202(a) of the Investment Advisers Act
            of 1940 (15 U.S.C. 80b-2(a)) is amended by adding at
            the end the following:
                ``(27) The terms `security future' and `narrow-
            based security index' have the same meanings as
            provided in section 3(a)(55) of the Securities Exchange
            Act of 1934.''.
        (b) Other Provision.--Section 203(b) of the Investment
    Advisers Act of 1940 (15 U.S.C. 80b-3(b)) is amended--
                (1) by striking ``or'' at the end of paragraph (4);
                (2) by striking the period at the end of paragraph
            (5) and inserting ``; or''; and
                (3) by adding at the end the following:
                ``(6) any investment adviser that is registered
            with the Commodity Futures Trading Commission as a
            commodity trading advisor whose business does not
            consist primarily of acting as an investment adviser,
            as defined in section 202(a)(11) of this title, and
            that does not act as an investment adviser to--
                        ``(A) an investment company registered
                    under title I of this Act; or
                        ``(B) a company which has elected to be a
                    business development company pursuant to
                    section 54 of title I of this Act and has not
                    withdrawn its election.''.

    SEC. 210. PREEMPTION OF STATE LAWS.

        Section 28(a) of the Securities Exchange Act of 1934 (15
    U.S.C. 78bb(a)) is amended--
                (1) in the last sentence--
                        (A) by inserting ``subject to this title''
                    after ``privilege, or other security''; and
                        (B) by striking ``any such instrument, if
                    such instrument is traded pursuant to rules and
                    regulations of a self-regulatory organization
                    that are filed with the Commission pursuant to
                    section 19(b) of this Act'' and inserting ``any
                    such security''; and
                (2) by adding at the end the following new
            sentence: ``No provision of State law regarding the
            offer, sale, or distribution of securities shall apply
            to any transaction in a security futures product,
            except that this sentence shall not be construed as
            limiting any State antifraud law of general
            applicability.''.

              Subtitle B--Amendments to the Commodity Exchange Act

    SEC. 251. JURISDICTION OF SECURITIES AND EXCHANGE COMMISSION; OTHER
                        PROVISIONS.

        (a) Jurisdiction of Securities and Exchange Commission.--
                (1) Section 2(a)(1)(C) of the Commodity Exchange
            Act (7 U.S.C. 2a) (as redesignated by section
            34(a)(2)(C)) is amended--
                        (A) in clause (ii)--
                                (i) by inserting ``or register a
                            derivatives transaction execution
                            facility that trades or executes,''
                            after ``contract market in,'';
                                (ii) by inserting after
                            ``contracts) for future delivery'' the
                            following: ``, and no derivatives
                            transaction execution facility shall
                            trade or execute such contracts of sale
                            (or options on such contracts) for
                            future delivery,'';
                                (iii) by striking ``making such
                            application demonstrates and the
                            Commission expressly finds that the
                            specific contract (or option on such
                            contract) with respect to which the
                            application has been made meets'' and
                            inserting ``or the derivatives
                            transaction execution facility, and the
                            applicable contract, meet'';
                                (iv) by striking subclause (III) of
                            clause (ii) and inserting the
                            following:
                        ``(III) Such group or index of securities
                    shall not constitute a narrow-based security
                    index.'';
                        (B) by striking clause (iii);
                        (C) by striking clause (iv) and inserting
                    the following:
                ``(iii) If, in its discretion, the Commission
            determines that a stock index futures contract,
            notwithstanding its conformance with the requirements
            in clause (ii) of this subparagraph, can reasonably be
            used as a surrogate for trading a security (including a
            security futures product), it may, by order, require
            such contract and any option thereon be traded and
            regulated as security futures products as defined in
            section 3(a)(56) of the Securities Exchange Act of 1934
            and section 1a of this Act subject to all rules and
            regulations applicable to security futures products
            under this Act and the securities laws as defined in
            section 3(a)(47) of the Securities Exchange Act of
            1934.''; and
                        (D) by redesignating clause (v) as clause
                    (iv).
                (2) Section 2(a)(1) of the Commodity Exchange Act
            (7 U.S.C. 2, 2a, 4) is amended by adding at the end the
            following:
        ``(D)(i) Notwithstanding any other provision of this Act,
    the Securities and Exchange Commission shall have jurisdiction
    and authority over security futures as defined in section
    3(a)(55) of the Securities Exchange Act of 1934, section
    2(a)(16) of the Securities Act of 1933, section 2(a)(52) of the
    Investment Company Act of 1940, and section 202(a)(27) of the
    Investment Advisers Act of 1940, options on security futures,
    and persons effecting transactions in security futures and
    options thereon, and this Act shall apply to and the Commission
    shall have jurisdiction with respect to accounts, agreements
    (including any transaction which is of the character of, or is
    commonly known to the trade as, an `option', `privilege',
    `indemnity', `bid', `offer', `put', `call', `advance guaranty',
    or `decline guaranty'), contracts, and transactions involving,
    and may designate a board of trade as a contract market in, or
    register a derivatives transaction execution facility that
    trades or executes, a security futures product as defined in
    section 1a of this Act: Provided, however, That, except as
    provided in clause (vi) of this subparagraph, no board of trade
    shall be designated as a contract market with respect to, or
    registered as a derivatives transaction execution facility for,
    any such contracts of sale for future delivery unless the board
    of trade and the applicable contract meet the following
    criteria:
                ``(I) Except as otherwise provided in a rule,
            regulation, or order issued pursuant to clause (v) of
            this subparagraph, any security underlying the security
            future, including each component security of a narrow-
            based security index, is registered pursuant to section
            12 of the Securities Exchange Act of 1934.
                ``(II) If the security futures product is not cash
            settled, the board of trade on which the security
            futures product is traded has arrangements in place
            with a clearing agency registered pursuant to section
            17A of the Securities Exchange Act of 1934 for the
            payment and delivery of the securities underlying the
            security futures product.
                ``(III) Except as otherwise provided in a rule,
            regulation, or order issued pursuant to clause (v) of
            this subparagraph, the security future is based upon
            common stock and such other equity securities as the
            Commission and the Securities and Exchange Commission
            jointly determine appropriate.
                ``(IV) The security futures product is cleared by a
            clearing agency that has in place provisions for linked
            and coordinated clearing with other clearing agencies
            that clear security futures products, which permits the
            security futures product to be purchased on a
            designated contract market, registered derivatives
            transaction execution facility, national securities
            exchange registered under section 6(a) of the
            Securities Exchange Act of 1934, or national securities
            association registered pursuant to section 15A(a) of
            the Securities Exchange Act of 1934 and offset on
            another designated contract market, registered
            derivatives transaction execution facility, national
            securities exchange registered under section 6(a) of
            the Securities Exchange Act of 1934, or national
            securities association registered pursuant to section
            15A(a) of the Securities Exchange Act of 1934.
                ``(V) Only futures commission merchants,
            introducing brokers, commodity trading advisors,
            commodity pool operators or associated persons subject
            to suitability rules comparable to those of a national
            securities association registered pursuant to section
            15A(a) of the Securities Exchange Act of 1934 solicit,
            accept any order for, or otherwise deal in any
            transaction in or in connection with the security
            futures product.
                ``(VI) The security futures product is subject to a
            prohibition against dual trading in section 4j of this
            Act and the rules and regulations thereunder or the
            provisions of section 11(a) of the Securities Exchange
            Act of 1934 and the rules and regulations thereunder,
            except to the extent otherwise permitted under the
            Securities Exchange Act of 1934 and the rules and
            regulations thereunder.
                ``(VII) Trading in the security futures product is
            not readily susceptible to manipulation of the price of
            such security futures product, nor to causing or being
            used in the manipulation of the price of any underlying
            security, option on such security, or option on a group
            or index including such securities;
                ``(VIII) The board of trade on which the security
            futures product is traded has procedures in place for
            coordinated surveillance among such board of trade, any
            market on which any security underlying the security
            futures product is traded, and other markets on which
            any related security is traded to detect manipulation
            and insider trading, except that, if the board of trade
            is an alternative trading system, a national securities
            association registered pursuant to section 15A(a) of
            the Securities Exchange Act of 1934 or national
            securities exchange registered pursuant to section 6(a)
            of the Securities Exchange Act of 1934 of which such
            alternative trading system is a member has in place
            such procedures.
                ``(IX) The board of trade on which the security
            futures product is traded has in place audit trails
            necessary or appropriate to facilitate the coordinated
            surveillance required in subclause (VIII), except that,
            if the board of trade is an alternative trading system,
            a national securities association registered pursuant
            to section 15A(a) of the Securities Exchange Act of
            1934 or national securities exchange registered
            pursuant to section 6(a) of the Securities Exchange Act
            of 1934 of which such alternative trading system is a
            member has rules to require such audit trails.
                ``(X) The board of trade on which the security
            futures product is traded has in place procedures to
            coordinate trading halts between such board of trade
            and markets on which any security underlying the
            security futures product is traded and other markets on
            which any related security is traded, except that, if
            the board of trade is an alternative trading system, a
            national securities association registered pursuant to
            section 15A(a) of the Securities Exchange Act of 1934
            or national securities exchange registered pursuant to
            section 6(a) of the Securities Exchange Act of 1934 of
            which such alternative trading system is a member has
            rules to require such coordinated trading halts.
                ``(XI) The margin requirements for a security
            futures product comply with the regulations prescribed
            pursuant to section 7(c)(2)(B) of the Securities
            Exchange Act of 1934, except that nothing in this
            subclause shall be construed to prevent a board of
            trade from requiring higher margin levels for a
            security futures product when it deems such action to
            be necessary or appropriate.
        ``(ii) It shall be unlawful for any person to offer, to
    enter into, to execute, to confirm the execution of, or to
    conduct any office or business anywhere in the United States,
    its territories or possessions, for the purpose of soliciting,
    or accepting any order for, or otherwise dealing in, any
    transaction in, or in connection with, a security futures
    product unless--
                ``(I) the transaction is conducted on or subject to
            the rules of a board of trade that--
                        ``(aa) has been designated by the
                    Commission as a contract market in such
                    security futures product; or
                        ``(bb) is a registered derivatives
                    transaction execution facility for the security
                    futures product that has provided a
                    certification with respect to the security
                    futures product pursuant to clause (vii);
                ``(II) the contract is executed or consummated by,
            through, or with a member of the contract market or
            registered derivatives transaction execution facility;
            and
                ``(III) the security futures product is evidenced
            by a record in writing which shows the date, the
            parties to such security futures product and their
            addresses, the property covered, and its price, and
            each contract market member or registered derivatives
            transaction execution facility member shall keep the
            record for a period of 3 years from the date of the
            transaction, or for a longer period if the Commission
            so directs, which record shall at all times be open to
            the inspection of any duly authorized representative of
            the Commission.
        ``(iii)(I) Except as provided in subclause (II) but
    notwithstanding any other provision of this Act, no person
    shall offer to enter into, enter into, or confirm the execution
    of any option on a security future.
        ``(II) After 3 years after the date of the enactment of the
    Commodity Futures Modernization Act of 2000, the Commission and
    the Securities and Exchange Commission may by order jointly
    determine to permit trading of options on any security future
    authorized to be traded under the provisions of this Act and
    the Securities Exchange Act of 1934.
        ``(iv)(I) All relevant records of a futures commission
    merchant or introducing broker registered pursuant to section
    4f(a)(2), floor broker or floor trader exempt from registration
    pursuant to section 4f(a)(3), associated person exempt from
    registration pursuant to section 4k(6), or board of trade
    designated as a contract market in a security futures product
    pursuant to section 5f shall be subject to such reasonable
    periodic or special examinations by representatives of the
    Commission as the Commission deems necessary or appropriate in
    the public interest, for the protection of investors, or
    otherwise in furtherance of the purposes of this Act, and the
    Commission, before conducting any such examination, shall give
    notice to the Securities and Exchange Commission of the
    proposed examination and consult with the Securities and
    Exchange Commission concerning the feasibility and desirability
    of coordinating the examination with examinations conducted by
    the Securities and Exchange Commission in order to avoid
    unnecessary regulatory duplication or undue regulatory burdens
    for the registrant or board of trade.
        ``(II) The Commission shall notify the Securities and
    Exchange Commission of any examination conducted of any futures
    commission merchant or introducing broker registered pursuant
    to section 4f(a)(2), floor broker or floor trader exempt from
    registration pursuant to section 4f(a)(3), associated person
    exempt from registration pursuant to section 4k(6), or board of
    trade designated as a contract market in a security futures
    product pursuant to section 5f, and, upon request, furnish to
    the Securities and Exchange Commission any examination report
    and data supplied to or prepared by the Commission in
    connection with the examination.
        ``(III) Before conducting an examination under subclause
    (I), the Commission shall use the reports of examinations,
    unless the information sought is unavailable in the reports, of
    any futures commission merchant or introducing broker
    registered pursuant to section 4f(a)(2), floor broker or floor
    trader exempt from registration pursuant to section 4f(a)(3),
    associated person exempt from registration pursuant to section
    4k(6), or board of trade designated as a contract market in a
    security futures product pursuant to section 5f that is made by
    the Securities and Exchange Commission, a national securities
    association registered pursuant to section 15A(a) of the
    Securities Exchange Act of 1934 (15 U.S.C. 78o-3(a)), or a
    national securities exchange registered pursuant to section
    6(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78f(a)).
        ``(IV) Any records required under this subsection for a
    futures commission merchant or introducing broker registered
    pursuant to section 4f(a)(2), floor broker or floor trader
    exempt from registration pursuant to section 4f(a)(3),
    associated person exempt from registration pursuant to section
    4k(6), or board of trade designated as a contract market in a
    security futures product pursuant to section 5f, shall be
    limited to records with respect to accounts, agreements,
    contracts, and transactions involving security futures
    products.
        ``(v)(I) The Commission and the Securities and Exchange
    Commission, by rule, regulation, or order, may jointly modify
    the criteria specified in subclause (I) or (III) of clause (i),
    including the trading of security futures based on securities
    other than equity securities, to the extent such modification
    fosters the development of fair and orderly markets in security
    futures products, is necessary or appropriate in the public
    interest, and is consistent with the protection of investors.
        ``(II) The Commission and the Securities and Exchange
    Commission, by order, may jointly exempt any person from
    compliance with the criterion specified in clause (i)(IV) to
    the extent such exemption fosters the development of fair and
    orderly markets in security futures products, is necessary or
    appropriate in the public interest, and is consistent with the
    protection of investors.
        ``(vi)(I) Notwithstanding clauses (i) and (vii), until the
    compliance date, a board of trade shall not be required to meet
    the criterion specified in clause (i)(IV).
        ``(II) The Commission and the Securities and Exchange
    Commission shall jointly publish in the Federal Register a
    notice of the compliance date no later than 165 days before the
    compliance date.
        ``(III) For purposes of this clause, the term `compliance
    date' means the later of--
                ``(aa) 180 days after the end of the first full
            calendar month period in which the average aggregate
            comparable share volume for all security futures
            products based on single equity securities traded on
            all designated contract markets and registered
            derivatives transaction execution facilities equals or
            exceeds 10 percent of the average aggregate comparable
            share volume of options on single equity securities
            traded on all national securities exchanges registered
            pursuant to section 6(a) of the Securities Exchange Act
            of 1934 and any national securities associations
            registered pursuant to section 15A(a) of such Act; or
                ``(bb) 2 years after the date on which trading in
            any security futures product commences under this Act.
        ``(vii) It shall be unlawful for a board of trade to trade
    or execute a security futures product unless the board of trade
    has provided the Commission with a certification that the
    specific security futures product and the board of trade, as
    applicable, meet the criteria specified in subclauses (I)
    through (XI) of clause (i), except as otherwise provided in
    clause (vi).''.
        (b) Margin on Security Futures.--Section 2(a)(1)(C)(vi) of
    the Commodity Exchange Act (7 U.S.C. 2a(vi)) (as redesignated
    by section 34) is amended--
                (1) by redesignating subclause (V) as subclause
            (VI); and
                (2) by striking ``(vi)(I)'' and all that follows
            through subclause (IV) and inserting the following:
                ``(v)(I) Notwithstanding any other provision of
            this Act, any contract market in a stock index futures
            contract (or option thereon) other than a security
            futures product, or any derivatives transaction
            execution facility on which such contract or option is
            traded, shall file with the Board of Governors of the
            Federal Reserve System any rule establishing or
            changing the levels of margin (initial and maintenance)
            for such stock index futures contract (or option
            thereon) other than security futures products.
                ``(II) The Board may at any time request any
            contract market or derivatives transaction execution
            facility to set the margin for any stock index futures
            contract (or option thereon), other than for any
            security futures product, at such levels as the Board
            in its judgment determines are appropriate to preserve
            the financial integrity of the contract market or
            derivatives transaction execution facility, or its
            clearing system, or to prevent systemic risk. If the
            contract market or derivatives transaction execution
            facility fails to do so within the time specified by
            the Board in its request, the Board may direct the
            contract market or derivatives transaction execution
            facility to alter or supplement the rules of the
            contract market or derivatives transaction execution
            facility as specified in the request.
                ``(III) Subject to such conditions as the Board may
            determine, the Board may delegate any or all of its
            authority, relating to margin for any stock index
            futures contract (or option thereon), other than
            security futures products, under this clause to the
            Commission.
                ``(IV) It shall be unlawful for any futures
            commission merchant to, directly or indirectly, extend
            or maintain credit to or for, or collect margin from
            any customer on any security futures product unless
            such activities comply with the regulations prescribed
            pursuant to section 7(c)(2)(B) of the Securities
            Exchange Act of 1934.
                ``(V) Nothing in this clause shall supersede or
            limit the authority granted to the Commission in
            section 8a(9) to direct a contract market or registered
            derivatives transaction execution facility, on finding
            an emergency to exist, to raise temporary margin levels
            on any futures contract, or option on the contract
            covered by this clause, or on any security futures
            product.''.
        (c) Dual Trading.--Section 4j of the Commodity Exchange Act
    (7 U.S.C. 6j) is amended to read as follows:

    ``SEC. 4J. RESTRICTIONS ON DUAL TRADING IN SECURITY FUTURES PRODUCTS ON
                        DESIGNATED CONTRACT MARKETS AND REGISTERED
                        DERIVATIVES TRANSACTION EXECUTION FACILITIES.

        ``(a) The Commission shall issue regulations to prohibit
    the privilege of dual trading in security futures products on
    each contract market and registered derivatives transaction
    execution facility. The regulations issued by the Commission
    under this section--
                ``(1) shall provide that the prohibition of dual
            trading thereunder shall take effect upon issuance of
            the regulations; and
                ``(2) shall provide exceptions, as the Commission
            determines appropriate, to ensure fairness and orderly
            trading in security futures product markets,
            including--
                        ``(A) exceptions for spread transactions
                    and the correction of trading errors;
                        ``(B) allowance for a customer to designate
                    in writing not less than once annually a named
                    floor broker to execute orders for such
                    customer, notwithstanding the regulations to
                    prohibit the privilege of dual trading required
                    under this section; and
                        ``(C) other measures reasonably designed to
                    accommodate unique or special characteristics
                    of individual boards of trade or contract
                    markets, to address emergency or unusual market
                    conditions, or otherwise to further the public
                    interest consistent with the promotion of
                    market efficiency, innovation, and expansion of
                    investment opportunities, the protection of
                    investors, and with the purposes of this
                    section.
        ``(b) As used in this section, the term `dual trading'
    means the execution of customer orders by a floor broker during
    the same trading session in which the floor broker executes any
    trade in the same contract market or registered derivatives
    transaction execution facility for--
                ``(1) the account of such floor broker;
                ``(2) an account for which such floor broker has
            trading discretion; or
                ``(3) an account controlled by a person with whom
            such floor broker has a relationship through membership
            in a broker association.
        ``(c) As used in this section, the term `broker
    association' shall include two or more contract market members
    or registered derivatives transaction execution facility
    members with floor trading privileges of whom at least one is
    acting as a floor broker, who--
                ``(1) engage in floor brokerage activity on behalf
            of the same employer,
                ``(2) have an employer and employee relationship
            which relates to floor brokerage activity,
                ``(3) share profits and losses associated with
            their brokerage or trading activity, or
                ``(4) regularly share a deck of orders.''.
        (d) Exemption From Registration for Investment Advisers.--
    Section 4m of the Commodity Exchange Act (7 U.S.C. 6m) is
    amended by adding at the end the following:
        ``(3) Subsection (1) of this section shall not apply to any
    commodity trading advisor that is registered with the
    Securities and Exchange Commission as an investment adviser
    whose business does not consist primarily of acting as a
    commodity trading advisor, as defined in section 1a(6), and
    that does not act as a commodity trading advisor to any
    investment trust, syndicate, or similar form of enterprise that
    is engaged primarily in trading in any commodity for future
    delivery on or subject to the rules of any contract market or
    registered derivatives transaction execution facility.''.
        (e) Exemption From Investigations of Markets in Underlying
    Securities.--Section 16 of the Commodity Exchange Act (7 U.S.C.
    20) is amended by adding at the end the following:
        ``(e) This section shall not apply to investigations
    involving any security underlying a security futures
    product.''.
        (f) Rulemaking Authority To Address Duplicative Regulation
    of Dual Registrants.--Section 4d of the Commodity Exchange Act
    (7 U.S.C. 6d) is amended--
                (1) by inserting ``(a)'' before the first
            undesignated paragraph;
                (2) by inserting ``(b)'' before the second
            undesignated paragraph; and
                (3) by adding at the end the following:
        ``(c) Consistent with this Act, the Commission, in
    consultation with the Securities and Exchange Commission, shall
    issue such rules, regulations, or orders as are necessary to
    avoid duplicative or conflicting regulations applicable to any
    futures commission merchant registered with the Commission
    pursuant to section 4f(a) (except paragraph (2) thereof), that
    is also registered with the Securities and Exchange Commission
    pursuant to section 15(b) of the Securities Exchange Act
    (except paragraph (11) thereof), involving the application of--
                ``(1) section 8, section 15(c)(3), and section 17
            of the Securities Exchange Act of 1934 and the rules
            and regulations thereunder related to the treatment of
            customer funds, securities, or property, maintenance of
            books and records, financial reporting or other
            financial responsibility rules (as defined in section
            3(a)(40) of the Securities Exchange Act of 1934),
            involving security futures products; and
                ``(2) similar provisions of this Act and the rules
            and regulations thereunder involving security futures
            products.''.
        (g) Obligation To Address Duplicative Regulation of Dual
    Registrants.--Section 17 of the Commodity Exchange Act (7
    U.S.C. 21) is amended by adding at the end the following:
        ``(r) Consistent with this Act, each futures association
    registered under this section shall issue such rules as are
    necessary to avoid duplicative or conflicting rules applicable
    to any futures commission merchant registered with the
    Commission pursuant to section 4f(a) of this Act (except
    paragraph (2) thereof), that is also registered with the
    Securities and Exchange Commission pursuant to section 15(b) of
    the Securities and Exchange Act of 1934 (except paragraph (11)
    thereof), with respect to the application of--
                ``(1) rules of such futures association of the type
            specified in section 4d(3) of this Act involving
            security futures products; and
                ``(2) similar rules of national securities
            associations registered pursuant to section 15A(a) of
            the Securities and Exchange Act of 1934 involving
            security futures products.''.
        (h) Obligation to Address Duplicative Regulation of Dual
    Registrants.--Section 5c of the Commodity Exchange Act (as
    added by section 114) is amended by adding at the end the
    following:
        ``(f) Consistent with this Act, each designated contract
    market and registered derivatives transaction execution
    facility shall issue such rules as are necessary to avoid
    duplicative or conflicting rules applicable to any futures
    commission merchant registered with the Commission pursuant to
    section 4f(a) of this Act (except paragraph (2) thereof), that
    is also registered with the Securities and Exchange Commission
    pursuant to section 15(b) of the Securities Exchange Act of
    1934 (except paragraph (11) thereof) with respect to the
    application of--
                ``(1) rules of such designated contract market or
            registered derivatives transaction execution facility
            of the type specified in section 4d(3) of this Act
            involving security futures products; and
                ``(2) similar rules of national securities
            associations registered pursuant to section 15A(a) of
            the Securities Exchange Act of 1934 and national
            securities exchanges registered pursuant to section
            6(g) of such Act involving security futures
            products.''.
        (i) Obligation To Address Security Futures Products Traded
    on Foreign Exchanges.--Section 2(a)(1) of the Commodity
    Exchange Act (7 U.S.C. 2, 2a, and 4) is amended by adding at
    the end the following:
        ``(E)(i) To the extent necessary or appropriate in the
    public interest, to promote fair competition, and consistent
    with promotion of market efficiency, innovation, and expansion
    of investment opportunities, the protection of investors, and
    the maintenance of fair and orderly markets, the Commission and
    the Securities and Exchange Commission shall jointly issue such
    rules, regulations, or orders as are necessary and appropriate
    to permit the offer and sale of a security futures product
    traded on or subject to the rules of a foreign board of trade
    to United States persons.
        ``(ii) The rules, regulations, or orders adopted under
    clause (i) shall take into account, as appropriate, the nature
    and size of the markets that the securities underlying the
    security futures product reflects.''.
        (j) Security Futures Products Traded on Foreign Boards of
    Trade.--Section 2(a)(1) of the Commodity Exchange Act (7 U.S.C.
    2, 2a, and 4) is amended by adding at the end the following:
        ``(F)(i) Nothing in this Act is intended to prohibit a
    futures commission merchant from carrying security futures
    products traded on or subject to the rules of a foreign board
    of trade in the accounts of persons located outside of the
    United States.
        ``(ii) Nothing in this Act is intended to prohibit any
    eligible contract participant located in the United States from
    purchasing or carrying securities futures products traded on or
    subject to the rules of a foreign board of trade, exchange, or
    market to the same extent such person may be authorized to
    purchase or carry other securities traded on a foreign board of
    trade, exchange, or market so long as any underlying security
    for such security futures products is traded principally on,
    by, or through any exchange or market located outside the
    United States.''.

    SEC. 252. APPLICATION OF THE COMMODITY EXCHANGE ACT TO NATIONAL
                        SECURITIES EXCHANGES AND NATIONAL SECURITIES
                        ASSOCIATIONS THAT TRADE SECURITY FUTURES.

        (a) Notice Designation of National Securities Exchanges and
    National Securities Associations.--The Commodity Exchange Act
    is amended by inserting after section 5e (7 U.S.C. 7b), as
    redesignated by section 21(1), the following:

    ``SEC. 5F. DESIGNATION OF SECURITIES EXCHANGES AND ASSOCIATIONS AS
                        CONTRACT MARKETS.

        ``(a) Any board of trade that is registered with the
    Securities and Exchange Commission as a national securities
    exchange, is a national securities association registered
    pursuant to section 15A(a) of the Securities Exchange Act of
    1934, or is an alternative trading system shall be a designated
    contract market in security futures products if--
                ``(1) such national securities exchange, national
            securities association, or alternative trading system
            lists or trades no other contracts of sale for future
            delivery, except for security futures products;
                ``(2) such national securities exchange, national
            securities association, or alternative trading system
            files written notice with the Commission in such form
            as the Commission, by rule, may prescribe containing
            such information as the Commission, by rule, may
            prescribe as necessary or appropriate in the public
            interest or for the protection of customers; and
                ``(3) the registration of such national securities
            exchange, national securities association, or
            alternative trading system is not suspended pursuant to
            an order by the Securities and Exchange Commission.
    Such designation shall be effective contemporaneously with the
    submission of notice, in written or electronic form, to the
    Commission.
        ``(b)(1) A national securities exchange, national
    securities association, or alternative trading system that is
    designated as a contract market pursuant to section 5f shall be
    exempt from the following provisions of this Act and the rules
    thereunder:
                ``(A) Subsections (c), (e), and (g) of section 4c.
                ``(B) Section 4j.
                ``(C) Section 5.
                ``(D) Section 5c.
                ``(E) Section 6a.
                ``(F) Section 8(d).
                ``(G) Section 9(f).
                ``(H) Section 16.
        ``(2) An alternative trading system that is a designated
    contract market under this section shall be required to be a
    member of a futures association registered under section 17 and
    shall be exempt from any provision of this Act that would
    require such alternative trading system to--
                ``(A) set rules governing the conduct of
            subscribers other than the conduct of such subscribers'
            trading on such alternative trading system; or
                ``(B) discipline subscribers other than by
            exclusion from trading.
        ``(3) To the extent that an alternative trading system is
    exempt from any provision of this Act pursuant to paragraph (2)
    of this subsection, the futures association registered under
    section 17 of which the alternative trading system is a member
    shall set rules governing the conduct of subscribers to the
    alternative trading system and discipline the subscribers.
        ``(4)(A) Except as provided in subparagraph (B), but
    notwithstanding any other provision of this Act, the
    Commission, by rule, regulation, or order, may conditionally or
    unconditionally exempt any designated contract market in
    security futures subject to the designation requirement of this
    section from any provision of this Act or of any rule or
    regulation thereunder, to the extent such exemption is
    necessary or appropriate in the public interest and is
    consistent with the protection of investors.
        ``(B) The Commission shall, by rule or regulation,
    determine the procedures under which an exemptive order under
    this section is granted and may, in its sole discretion,
    decline to entertain any application for an order of exemption
    under this section.
        ``(C) An alternative trading system shall not be deemed to
    be an exchange for any purpose as a result of the designation
    of such alternative trading system as a contract market under
    this section.''.
        (b) Notice Registration of Certain Securities Broker-
    Dealers; Exemption From Registration for Certain Securities
    Broker-Dealers.--Section 4f(a) of the Commodity Exchange Act (7
    U.S.C. 6f(a)) is amended--
                (1) by inserting ``(1)'' after ``(a)''; and
                (2) by adding at the end the following:
        ``(2) Notwithstanding paragraph (1), and except as provided
    in paragraph (3), any broker or dealer that is registered with
    the Securities and Exchange Commission shall be registered as a
    futures commission merchant or introducing broker, as
    applicable, if--
                ``(A) the broker or dealer limits its solicitation
            of orders, acceptance of orders, or execution of
            orders, or placing of orders on behalf of others
            involving any contracts of sale of any commodity for
            future delivery, on or subject to the rules of any
            contract market or registered derivatives transaction
            execution facility to security futures products;
                ``(B) the broker or dealer files written notice
            with the Commission in such form as the Commission, by
            rule, may prescribe containing such information as the
            Commission, by rule, may prescribe as necessary or
            appropriate in the public interest or for the
            protection of investors;
                ``(C) the registration of the broker or dealer is
            not suspended pursuant to an order of the Securities
            and Exchange Commission; and
                ``(D) the broker or dealer is a member of a
            national securities association registered pursuant to
            section 15A(a) of the Securities Exchange Act of 1934.
    The registration shall be effective contemporaneously with the
    submission of notice, in written or electronic form, to the
    Commission.
        ``(3) A floor broker or floor trader shall be exempt from
    the registration requirements of section 4e and paragraph (1)
    of this subsection if--
                ``(A) the floor broker or floor trader is a broker
            or dealer registered with the Securities and Exchange
            Commission;
                ``(B) the floor broker or floor trader limits its
            solicitation of orders, acceptance of orders, or
            execution of orders, or placing of orders on behalf of
            others involving any contracts of sale of any commodity
            for future delivery, on or subject to the rules of any
            contract market to security futures products; and
                ``(C) the registration of the floor broker or floor
            trader is not suspended pursuant to an order of the
            Securities and Exchange Commission.''.
        (c) Exemption for Securities Broker-Dealers From Certain
    Provisions of the Commodity Exchange Act.--Section 4f(a) of the
    Commodity Exchange Act (7 U.S.C. 6f(a)) is amended by inserting
    after paragraph (3), as added by subsection (b) of this
    section, the following:
        ``(4)(A) A broker or dealer that is registered as a futures
    commission merchant or introducing broker pursuant to paragraph
    (2), or that is a floor broker or floor trader exempt from
    registration pursuant to paragraph (3), shall be exempt from
    the following provisions of this Act and the rules thereunder:
                ``(i) Subsections (b), (d), (e), and (g) of section
            4c.
                ``(ii) Sections 4d, 4e, and 4h.
                ``(iii) Subsections (b) and (c) of this section.
                ``(iv) Section 4j.
                ``(v) Section 4k(1).
                ``(vi) Section 4p.
                ``(vii) Section 6d.
                ``(viii) Subsections (d) and (g) of section 8.
                ``(ix) Section 16.
        ``(B)(i) Except as provided in clause (ii) of this
    subparagraph, but notwithstanding any other provision of this
    Act, the Commission, by rule, regulation, or order, may
    conditionally or unconditionally exempt any broker or dealer
    subject to the registration requirement of paragraph (2), or
    any broker or dealer exempt from registration pursuant to
    paragraph (3), from any provision of this Act or of any rule or
    regulation thereunder, to the extent the exemption is necessary
    or appropriate in the public interest and is consistent with
    the protection of investors.
        ``(ii) The Commission shall, by rule or regulation,
    determine the procedures under which an exemptive order under
    this section shall be granted and may, in its sole discretion,
    decline to entertain any application for an order of exemption
    under this section.
        ``(C)(i) A broker or dealer that is registered as a futures
    commission merchant or introducing broker pursuant to paragraph
    (2) or an associated person thereof, or that is a floor broker
    or floor trader exempt from registration pursuant to paragraph
    (3), shall not be required to become a member of any futures
    association registered under section 17.
        ``(ii) No futures association registered under section 17
    shall limit its members from carrying an account, accepting an
    order, or transacting business with a broker or dealer that is
    registered as a futures commission merchant or introducing
    broker pursuant to paragraph (2) or an associated person
    thereof, or that is a floor broker or floor trader exempt from
    registration pursuant to paragraph (3).''.
        (d) Exemptions for Associated Persons of Securities Broker-
    Dealers.--Section 4k of the Commodity Exchange Act (7 U.S.C.
    6k), is amended by inserting after paragraph (4), as added by
    subsection (c) of this section, the following:
        ``(5) Any associated person of a broker or dealer that is
    registered with the Securities and Exchange Commission, and who
    limits its solicitation of orders, acceptance of orders, or
    execution of orders, or placing of orders on behalf of others
    involving any contracts of sale of any commodity for future
    delivery or any option on such a contract, on or subject to the
    rules of any contract market or registered derivatives
    transaction execution facility to security futures products,
    shall be exempt from the following provisions of this Act and
    the rules thereunder:
                ``(A) Subsections (b), (d), (e), and (g) of section
            4c.
                ``(B) Sections 4d, 4e, and 4h.
                ``(C) Subsections (b) and (c) of section 4f.
                ``(D) Section 4j.
                ``(E) Paragraph (1) of this section.
                ``(F) Section 4p.
                ``(G) Section 6d.
                ``(H) Subsections (d) and (g) of section 8.
                ``(I) Section 16.''.

    SEC. 253. NOTIFICATION OF INVESTIGATIONS AND ENFORCEMENT ACTIONS.

        (a) Section 8(a) of the Commodity Exchange Act (7 U.S.C.
    12(a)) is amended by adding at the end the following:
        ``(3) The Commission shall provide the Securities and
    Exchange Commission with notice of the commencement of any
    proceeding and a copy of any order entered by the Commission
    against any futures commission merchant or introducing broker
    registered pursuant to section 4f(a)(2), any floor broker or
    floor trader exempt from registration pursuant to section
    4f(a)(3), any associated person exempt from registration
    pursuant to section 4k(6), or any board of trade designated as
    a contract market pursuant to section 5f.''.
        (b) Section 6 of the Commodity Exchange Act (7 U.S.C. 8, 9,
    9a, 9b, 13b, 15) is amended by adding at the end the following:
        ``(g) The Commission shall provide the Securities and
    Exchange Commission with notice of the commencement of any
    proceeding and a copy of any order entered by the Commission
    pursuant to subsections (c) and (d) of this section against any
    futures commission merchant or introducing broker registered
    pursuant to section 4f(a)(2), any floor broker or floor trader
    exempt from registration pursuant to section 4f(a)(3), any
    associated person exempt from registration pursuant to section
    4k(6), or any board of trade designated as a contract market
    pursuant to section 5f.''.
        (c) Section 6c of the Commodity Exchange Act (7 U.S.C. 13a-
    1) is amended by adding at the end the following:
        ``(h) The Commission shall provide the Securities and
    Exchange Commission with notice of the commencement of any
    proceeding and a copy of any order entered by the Commission
    against any futures commission merchant or introducing broker
    registered pursuant to section 4f(a)(2), any floor broker or
    floor trader exempt from registration pursuant to section
    4f(a)(3), any associated person exempt from registration
    pursuant to section 4k(6), or any board of trade designated as
    a contract market pursuant to section 5f.''.

                 TITLE III--LEGAL CERTAINTY FOR SWAP AGREEMENTS

    SEC. 301. SWAP AGREEMENT.

        (a) Amendment.--Title II of the Gramm-Leach-Bliley Act
    (Public Law 106-102) is amended by inserting after section 206
    the following new sections:

    ``SEC. 206A. SWAP AGREEMENT.

        ``(a) In General.--Except as provided in subsection (b), as
    used in this section, the term `swap agreement' means any
    agreement, contract, or transaction between eligible contract
    participants (as defined in section 1a(12) of the Commodity
    Exchange Act as in effect on the date of enactment of this
    section), other than a person that is an eligible contract
    participant under section 1a(12)(C) of the Commodity Exchange
    Act, the material terms of which (other than price and
    quantity) are subject to individual negotiation, and that--
                ``(1) is a put, call, cap, floor, collar, or
            similar option of any kind for the purchase or sale of,
            or based on the value of, one or more interest or other
            rates, currencies, commodities, indices, quantitative
            measures, or other financial or economic interests or
            property of any kind;
                ``(2) provides for any purchase, sale, payment or
            delivery (other than a dividend on an equity security)
            that is dependent on the occurrence, non-occurrence, or
            the extent of the occurrence of an event or contingency
            associated with a potential financial, economic, or
            commercial consequence;
                ``(3) provides on an executory basis for the
            exchange, on a fixed or contingent basis, of one or
            more payments based on the value or level of one or
            more interest or other rates, currencies, commodities,
            securities, instruments of indebtedness, indices,
            quantitative measures, or other financial or economic
            interests or property of any kind, or any interest
            therein or based on the value thereof, and that
            transfers, as between the parties to the transaction,
            in whole or in part, the financial risk associated with
            a future change in any such value or level without also
            conveying a current or future direct or indirect
            ownership interest in an asset (including any
            enterprise or investment pool) or liability that
            incorporates the financial risk so transferred,
            including any such agreement, contract, or transaction
            commonly known as an interest rate swap, including a
            rate floor, rate cap, rate collar, cross-currency rate
            swap, basis swap, currency swap, equity index swap,
            equity swap, debt index swap, debt swap, credit spread,
            credit default swap, credit swap, weather swap, or
            commodity swap;
                ``(4) provides for the purchase or sale, on a fixed
            or contingent basis, of any commodity, currency,
            instrument, interest, right, service, good, article, or
            property of any kind; or
                ``(5) is any combination or permutation of, or
            option on, any agreement, contract, or transaction
            described in any of paragraphs (1) through (4).
        ``(b) Exclusions.--The term `swap agreement' does not
    include--
                ``(1) any put, call, straddle, option, or privilege
            on any security, certificate of deposit, or group or
            index of securities, including any interest therein or
            based on the value thereof;
                ``(2) any put, call, straddle, option, or privilege
            entered into on a national securities exchange
            registered pursuant to section 6(a) of the Securities
            Exchange Act of 1934 relating to foreign currency;
                ``(3) any agreement, contract, or transaction
            providing for the purchase or sale of one or more
            securities on a fixed basis;
                ``(4) any agreement, contract, or transaction
            providing for the purchase or sale of one or more
            securities on a contingent basis, unless such
            agreement, contract, or transaction predicates such
            purchase or sale on the occurrence of a bona fide
            contingency that might reasonably be expected to affect
            or be affected by the creditworthiness of a party other
            than a party to the agreement, contract, or
            transaction;
                ``(5) any note, bond, or evidence of indebtedness
            that is a security as defined in section 2(a)(1) of the
            Securities Exchange Act of 1933 or section 3(a)(10) of
            the Securities Exchange Act of 1934; or
                ``(6) any agreement, contract, or transaction that
            is--
                        ``(A) based on a security; and
                        ``(B) entered into directly or through an
                    underwriter (as defined in section 2(a) of the
                    Securities Act of 1933) by the issuer of such
                    security for the purposes of raising capital,
                    unless such agreement, contract, or transaction
                    is entered into to manage a risk associated
                    with capital raising.
        ``(c) Rule of Construction Regarding Master Agreements.--As
    used in this section, the term `swap agreement' shall be
    construed to include a master agreement that provides for an
    agreement, contract, or transaction that is a swap agreement
    pursuant to subsections (a) and (b), together with all
    supplements to any such master agreement, without regard to
    whether the master agreement contains an agreement, contract,
    or transaction that is not a swap agreement pursuant to
    subsections (a) and (b), except that the master agreement shall
    be considered to be a swap agreement only with respect to each
    agreement, contract, or transaction under the master agreement
    that is a swap agreement pursuant to subsections (a) and (b).

    ``SEC. 206B. SECURITY-BASED SWAP AGREEMENT.

        ``As used in this section, the term `security-based swap
    agreement' means a swap agreement (as defined in section 206A)
    of which a material term is based on the price, yield, value,
    or volatility of any security or any group or index of
    securities, or any interest therein.

    ``SEC. 206C. NON-SECURITY-BASED SWAP AGREEMENT.

        ``As used in this section, the term `non-security-based
    swap agreement' means any swap agreement (as defined in section
    206A) that is not a security-based swap agreement (as defined
    in section 206B).''.
        (b) Security Definition.--As used in the amendment made by
    subsection (a), the term ``security'' has the same meaning as
    in section 2(a)(1) of the Securities Act of 1933 or section
    3(a)(10) of the Securities Exchange Act of 1934.

    SEC. 302. AMENDMENTS TO THE SECURITIES ACT OF 1933.

        (a) Enforcement Focus.--The Securities Act of 1933 is
    amended by inserting after section 2 (15 U.S.C. 77b) the
    following new section:

    ``SEC. 2A. SWAP AGREEMENTS.

        ``(a) Non-Security-Based Swap Agreements.--The definition
    of `security' in section 2(a)(1) of this title does not include
    any non-security-based swap agreement (as defined in section
    206C of the Gramm-Leach-Bliley Act).
        ``(b) Security-Based Swap Agreements.--
                ``(1) The definition of `security' in section
            2(a)(1) of this title does not include any security-
            based swap agreement (as defined in section 206B of the
            Gramm-Leach-Bliley Act).
                ``(2) The Commission is prohibited from
            registering, or requiring, recommending, or suggesting,
            the registration under this title of any security-based
            swap agreement (as defined in section 206B of the
            Gramm-Leach-Bliley Act). If the Commission becomes
            aware that a registrant has filed a registration
            statement with respect to such a swap agreement, the
            Commission shall promptly so notify the registrant. Any
            such registration statement with respect to such a swap
            agreement shall be void and of no force or effect.
                ``(3) The Commission is prohibited from--
                        ``(A) promulgating, interpreting, or
                    enforcing rules; or
                        ``(B) issuing orders of general
                    applicability;
            under this title in a manner that imposes or specifies
            reporting or recordkeeping requirements, procedures, or
            standards as prophylactic measures against fraud,
            manipulation, or insider trading with respect to any
            security-based swap agreement (as defined in section
            206B of the Gramm-Leach-Bliley Act).
                ``(4) References in this title to the `purchase' or
            `sale' of a security-based swap agreement shall be
            deemed to mean the execution, termination (prior to its
            scheduled maturity date), assignment, exchange, or
            similar transfer or conveyance of, or extinguishing of
            rights or obligations under, a security-based swap
            agreement (as defined in section 206B of the Gramm-
            Leach-Bliley Act), as the context may require.''.
        (b) Anti-Fraud and Anti-Manipulation Enforcement
    Authority.--Section 17(a) of the Securities Act of 1933 (15
    U.S.C. 77q(a)) is amended to read as follows:
        ``(a) It shall be unlawful for any person in the offer or
    sale of any securities or any security-based swap agreement (as
    defined in section 206B of the Gramm-Leach-Bliley Act) by the
    use of any means or instruments of transportation or
    communication in interstate commerce or by use of the mails,
    directly or indirectly--
                ``(1) to employ any device, scheme, or artifice to
            defraud, or
                ``(2) to obtain money or property by means of any
            untrue statement of a material fact or any omission to
            state a material fact necessary in order to make the
            statements made, in light of the circumstances under
            which they were made, not misleading; or
                ``(3) to engage in any transaction, practice, or
            course of business which operates or would operate as a
            fraud or deceit upon the purchaser.''.
        (c) Limitation.--Section 17 of the Securities Act of 1933
    is amended by adding at the end the following new subsection:
        ``(d) The authority of the Commission under this section
    with respect to security-based swap agreements (as defined in
    section 206B of the Gramm-Leach-Bliley Act) shall be subject to
    the restrictions and limitations of section 2A(b) of this
    title.''.

    SEC. 303. AMENDMENTS TO THE SECURITIES EXCHANGE ACT OF 1934.

        (a) Enforcement Focus.--The Securities Exchange Act of 1934
    is amended by inserting after section 3 (15 U.S.C. 78c) the
    following new section:

    ``SEC. 3A. SWAP AGREEMENTS.

        ``(a) Non-Security-Based Swap Agreements.--The definition
    of `security' in section 3(a)(10) of this title does not
    include any non-security-based swap agreement (as defined in
    section 206C of the Gramm-Leach-Bliley Act).
        ``(b) Security-Based Swap Agreements.--
                ``(1) The definition of `security' in section
            3(a)(10) of this title does not include any security-
            based swap agreement (as defined in section 206B of the
            Gramm-Leach-Bliley Act).
                ``(2) The Commission is prohibited from
            registering, or requiring, recommending, or suggesting,
            the registration under this title of any security-based
            swap agreement (as defined in section 206B of the
            Gramm-Leach-Bliley Act). If the Commission becomes
            aware that a registrant has filed a registration
            application with respect to such a swap agreement, the
            Commission shall promptly so notify the registrant. Any
            such registration with respect to such a swap agreement
            shall be void and of no force or effect.
                ``(3) Except as provided in section 16(a) with
            respect to reporting requirements, the Commission is
            prohibited from--
                        ``(A) promulgating, interpreting, or
                    enforcing rules; or
                        ``(B) issuing orders of general
                    applicability;
            under this title in a manner that imposes or specifies
            reporting or recordkeeping requirements, procedures, or
            standards as prophylactic measures against fraud,
            manipulation, or insider trading with respect to any
            security-based swap agreement (as defined in section
            206B of the Gramm-Leach-Bliley Act).
                ``(4) References in this title to the `purchase' or
            `sale' of a security-based swap agreement (as defined
            in section 206B of the Gramm-Leach-Bliley Act) shall be
            deemed to mean the execution, termination (prior to its
            scheduled maturity date), assignment, exchange, or
            similar transfer or conveyance of, or extinguishing of
            rights or obligations under, a security-based swap
            agreement, as the context may require.''.
        (b) Anti-Fraud, Anti-Manipulation Enforcement Authority.--
    Paragraphs (2) through (5) of section 9(a) of the Securities
    Exchange Act of 1934 (15 U.S.C. 78i(a)(2)-(5)) are amended to
    read as follows:
        ``(2) To effect, alone or with one or more other persons, a
    series of transactions in any security registered on a national
    securities exchange or in connection with any security-based
    swap agreement (as defined in section 206B of the Gramm-Leach-
    Bliley Act) with respect to such security creating actual or
    apparent active trading in such security, or raising or
    depressing the price of such security, for the purpose of
    inducing the purchase or sale of such security by others.
        ``(3) If a dealer or broker, or other person selling or
    offering for sale or purchasing or offering to purchase the
    security or a security-based swap agreement (as defined in
    section 206B of the Gramm-Leach-Bliley Act) with respect to
    such security, to induce the purchase or sale of any security
    registered on a national securities exchange or any security-
    based swap agreement (as defined in section 206B of the Gramm-
    Leach-Bliley Act) with respect to such security by the
    circulation or dissemination in the ordinary course of business
    of information to the effect that the price of any such
    security will or is likely to rise or fall because of market
    operations of any one or more persons conducted for the purpose
    of raising or depressing the price of such security.
        ``(4) If a dealer or broker, or the person selling or
    offering for sale or purchasing or offering to purchase the
    security or a security-based swap agreement (as defined in
    section 206B of the Gramm-Leach-Bliley Act) with respect to
    such security, to make, regarding any security registered on a
    national securities exchange or any security-based swap
    agreement (as defined in section 206B of the Gramm-Leach-Bliley
    Act) with respect to such security, for the purpose of inducing
    the purchase or sale of such security or such security-based
    swap agreement, any statement which was at the time and in the
    light of the circumstances under which it was made, false or
    misleading with respect to any material fact, and which he knew
    or had reasonable ground to believe was so false or misleading.
        ``(5) For a consideration, received directly or indirectly
    from a dealer or broker, or other person selling or offering
    for sale or purchasing or offering to purchase the security or
    a security-based swap agreement (as defined in section 206B of
    the Gramm-Leach-Bliley Act) with respect to such security, to
    induce the purchase of any security registered on a national
    securities exchange or any security-based swap agreement (as
    defined in section 206B of the Gramm-Leach-Bliley Act) with
    respect to such security by the circulation or dissemination of
    information to the effect that the price of any such security
    will or is likely to rise or fall because of the market
    operations of any one or more persons conducted for the purpose
    of raising or depressing the price of such security.''.
        (c) Limitation.--Section 9 of the Securities Exchange Act
    of 1934 is amended by adding at the end the following new
    subsection:
        ``(i) The authority of the Commission under this section
    with respect to security-based swap agreements shall be subject
    to the restrictions and limitations of section 3A(b) of this
    title.''.
        (d) Regulations on the Use of Manipulative and Deceptive
    Devices.--Section 10 of the Securities Exchange Act of 1934 (15
    U.S.C. 78j) is amended--
                (1) in subsection (b), by inserting ``or any
            securities-based swap agreement (as defined in section
            206B of the Gramm-Leach-Bliley Act),'' before ``any
            manipulative or deceptive device''; and
                (2) by adding at the end the following:
    ``Rules promulgated under subsection (b) that prohibit fraud,
    manipulation, or insider trading (but not rules imposing or
    specifying reporting or recordkeeping requirements, procedures,
    or standards as prophylactic measures against fraud,
    manipulation, or insider trading), and judicial precedents
    decided under subsection (b) and rules promulgated thereunder
    that prohibit fraud, manipulation, or insider trading, shall
    apply to security-based swap agreements (as defined in section
    206B of the Gramm-Leach-Bliley Act) to the same extent as they
    apply to securities. Judicial precedents decided under section
    17(a) of the Securities Act of 1933 and sections 9, 15, 16, 20,
    and 21A of this title, and judicial precedents decided under
    applicable rules promulgated under such sections, shall apply
    to security-based swap agreements (as defined in section 206B
    of the Gramm-Leach-Bliley Act) to the same extent as they apply
    to securities.''.
        (e) Broker, Dealer Anti-Fraud, Anti-Manipulation
    Enforcement Authority.--Section 15(c)(1) of the Securities
    Exchange Act of 1934 (15 U.S.C. 78o(c)(1)) is amended to read
    as follows:
        ``(c)(1)(A) No broker or dealer shall make use of the mails
    or any means or instrumentality of interstate commerce to
    effect any transaction in, or to induce or attempt to induce
    the purchase or sale of, any security (other than commercial
    paper, bankers' acceptances, or commercial bills) otherwise
    than on a national securities exchange of which it is a member,
    or any security-based swap agreement (as defined in section
    206B of the Gramm-Leach-Bliley Act), by means of any
    manipulative, deceptive, or other fraudulent device or
    contrivance.
        ``(B) No municipal securities dealer shall make use of the
    mails or any means or instrumentality of interstate commerce to
    effect any transaction in, or to induce or attempt to induce
    the purchase or sale of, any municipal security or any
    security-based swap agreement (as defined in section 206B of
    the Gramm-Leach-Bliley Act) involving a municipal security by
    means of any manipulative, deceptive, or other fraudulent
    device or contrivance.
        ``(C) No government securities broker or government
    securities dealer shall make use of the mails or any means or
    instrumentality of interstate commerce to effect any
    transaction in, or to induce or to attempt to induce the
    purchase or sale of, any government security or any security-
    based swap agreement (as defined in section 206B of the Gramm-
    Leach-Bliley Act) involving a government security by means of
    any manipulative, deceptive, or other fraudulent device or
    contrivance.''.
        (f) Limitation.--Section 15 of the Securities Exchange Act
    of 1934 (15 U.S.C. 78o) is amended by adding at the end the
    following new subsection:
        ``(i) The authority of the Commission under this section
    with respect to security-based swap agreements (as defined in
    section 206B of the Gramm-Leach-Bliley Act) shall be subject to
    the restrictions and limitations of section 3A(b) of this
    title.''.
        (g) Anti-Insider Trading Enforcement Authority.--
    Subsections (a) and (b) of section 16 (15 U.S.C. 78p(a), (b))
    of the Securities Exchange of 1934 are amended to read as
    follows:
        ``(a) Every person who is directly or indirectly the
    beneficial owner of more than 10 per centum of any class of any
    equity security (other than an exempted security) which is
    registered pursuant to section 12 of this title, or who is a
    director or an officer of the issuer of such security, shall
    file, at the time of the registration of such security on a
    national securities exchange or by the effective date of a
    registration statement filed pursuant to section 12 (g) of this
    title, or within ten days after he becomes such beneficial
    owner, director, or officer, a statement with the Commission
    (and, if such security is registered on a national securities
    exchange, also with the exchange) of the amount of all equity
    securities of such issuer of which he is the beneficial owner,
    and within ten days after the close of each calendar month
    thereafter, if there has been a change in such ownership or if
    such person shall have purchased or sold a security-based swap
    agreement (as defined in section 206B of the Gramm-Leach-Bliley
    Act) involving such equity security during such month, shall
    file with the Commission (and if such security is registered on
    a national securities exchange, shall also file with the
    exchange), a statement indicating his ownership at the close of
    the calendar month and such changes in his ownership and such
    purchases and sales of such security-based swap agreements as
    have occurred during such calendar month.
        ``(b) For the purpose of preventing the unfair use of
    information which may have been obtained by such beneficial
    owner, director, or officer by reason of his relationship to
    the issuer, any profit realized by him from any purchase and
    sale, or any sale and purchase, of any equity security of such
    issuer (other than an exempted security) or a security-based
    swap agreement (as defined in section 206B of the Gramm-Leach-
    Bliley Act) involving any such equity security within any
    period of less than six months, unless such security or
    security-based swap agreement was acquired in good faith in
    connection with a debt previously contracted, shall inure to
    and be recoverable by the issuer, irrespective of any intention
    on the part of such beneficial owner, director, or officer in
    entering into such transaction of holding the security or
    security-based swap agreement purchased or of not repurchasing
    the security or security-based swap agreement sold for a period
    exceeding six months. Suit to recover such profit may be
    instituted at law or in equity in any court of competent
    jurisdiction by the issuer, or by the owner of any security of
    the issuer in the name and in behalf of the issuer if the
    issuer shall fail or refuse to bring such suit within sixty
    days after request or shall fail diligently to prosecute the
    same thereafter; but no such suit shall be brought more than
    two years after the date such profit was realized. This
    subsection shall not be construed to cover any transaction
    where such beneficial owner was not such both at the time of
    the purchase and sale, or the sale and purchase, of the
    security or security-based swap agreement (as defined in
    section 206B of the Gramm-Leach-Bliley Act) involved, or any
    transaction or transactions which the Commission by rules and
    regulations may exempt as not comprehended within the purpose
    of this subsection.''.
        (h) Limitation.--Section 16 of the Securities Exchange Act
    of 1934 (15 U.S.C. 78p) is amended by adding at the end the
    following new subsection:
        ``(g) The authority of the Commission under this section
    with respect to security-based swap agreements (as defined in
    section 206B of the Gramm-Leach-Bliley Act) shall be subject to
    the restrictions and limitations of section 3A(b) of this
    title.''.
        (i) Material Nonpublic Information.--Section 20(d) of the
    Securities Exchange Act of 1934 (15 U.S.C. 78t(d)) is amended
    to read as follows:
        ``(d) Wherever communicating, or purchasing or selling a
    security while in possession of, material nonpublic information
    would violate, or result in liability to any purchaser or
    seller of the security under any provisions of this title, or
    any rule or regulation thereunder, such conduct in connection
    with a purchase or sale of a put, call, straddle, option,
    privilege or security-based swap agreement (as defined in
    section 206B of the Gramm-Leach-Bliley Act) with respect to
    such security or with respect to a group or index of securities
    including such security, shall also violate and result in
    comparable liability to any purchaser or seller of that
    security under such provision, rule, or regulation.''.
        (j) Limitation.--Section 20 of the Securities Exchange Act
    of 1934 (15 U.S.C. 78t) is amended by adding at the end the
    following new subsection:
        ``(f) The authority of the Commission under this section
    with respect to security-based swap agreements (as defined in
    section 206B of the Gramm-Leach-Bliley Act) shall be subject to
    the restrictions and limitations of section 3A(b) of this
    title.''.
        (k) Civil Penalties.--Section 21A(a)(1) of the Securities
    Exchange Act of 1934 (15 U.S.C. 78u-1)a)(1)) is amended by
    inserting after ``purchasing or selling a security'' the
    following: ``or security-based swap agreement (as defined in
    section 206B of the Gramm-Leach-Bliley Act)''.
        (l) Limitation.--Section 21A of the Securities Exchange Act
    of 1934 (15 U.S.C. 78u-1) is amended by adding at the end the
    following new subsection:
        ``(g) The authority of the Commission under this section
    with respect to security-based swap agreements (as defined in
    section 206B of the Gramm-Leach-Bliley Act) shall be subject to
    the restrictions and limitations of section 3A(b) of this
    title.''.

    SEC. 304. SAVINGS PROVISIONS.

        Nothing in this Act or the amendments made by this Act
    shall be construed as finding or implying that any swap
    agreement is or is not a security for any purpose under the
    securities laws. Nothing in this Act or the amendments made by
    this Act shall be construed as finding or implying that any
    swap agreement is or is not a futures contract or commodity
    option for any purpose under the Commodity Exchange Act.

             TITLE IV--REGULATORY RESPONSIBILITY FOR BANK PRODUCTS

    SEC. 401. SHORT TITLE.

        This title may be cited as the ``Legal Certainty for Bank
    Products Act of 2000''.

    SEC. 402. DEFINITIONS.

        (a) Bank.--In this title, the term ``bank'' means--
                (1) any depository institution (as defined in
            section 3(c) of the Federal Deposit Insurance Act);
                (2) any foreign bank or branch or agency of a
            foreign bank (each as defined in section 1(b) of the
            International Banking Act of 1978);
                (3) any Federal or State credit union (as defined
            in section 101 of the Federal Credit Union Act);
                (4) any corporation organized under section 25A of
            the Federal Reserve Act;
                (5) any corporation operating under section 25 of
            the Federal Reserve Act;
                (6) any trust company; or
                (7) any subsidiary of any entity described in
            paragraph (1) through (6) of this subsection, if the
            subsidiary is regulated as if the subsidiary were part
            of the entity and is not a broker or dealer (as such
            terms are defined in section 3 of the Securities
            Exchange Act of 1934) or a futures commission merchant
            (as defined in section 1a(20) of the Commodity Exchange
            Act).
        (b) Identified Banking Product.--In this title, the term
    ``identified banking product'' shall have the same meaning as
    in paragraphs (1) through (5) of section 206(a) of the Gramm-
    Leach-Bliley Act, except that in applying such section for
    purposes of this title--
                (1) the term ``bank'' shall have the meaning given
            in subsection (a) of this section; and
                (2) the term ``qualified investor'' means eligible
            contract participant (as defined in section 1a(12) of
            the Commodity Exchange Act, as in effect on the date of
            enactment of the Commodity Futures Modernization Act of
            2000).
        (c) Hybrid Instrument.--In this title, the term ``hybrid
    instrument'' means an identified banking product not excluded
    by section 403 of this Act, offered by a bank, having 1 or more
    payments indexed to the value, level, or rate of, or providing
    for the delivery of, 1 or more commodities (as defined in
    section 1a(4) of the Commodity Exchange Act).
        (d) Covered Swap Agreement.--In this title, the term
    ``covered swap agreement'' means a swap agreement (as defined
    in section 206(b) of the Gramm-Leach-Bliley Act), including a
    credit or equity swap, based on a commodity other than an
    agricultural commodity enumerated in section 1a(4) of the
    Commodity Exchange Act if--
                (1) the swap agreement--
                        (A) is entered into only between persons
                    that are eligible contract participants (as
                    defined in section 1a(12) of the Commodity
                    Exchange Act, as in effect on the date of
                    enactment of the Commodity Futures
                    Modernization Act of 2000) at the time the
                    persons enter into the swap agreement; and
                        (B) is not entered into or executed on a
                    trading facility (as defined in section 1a(33)
                    of the Commodity Exchange Act); or
                (2) the swap agreement--
                        (A) is entered into or executed on an
                    electronic trading facility (as defined in
                    section 1a(10) of the Commodity Exchange Act);
                        (B) is entered into on a principal-to-
                    principal basis between parties trading for
                    their own accounts or as described in section
                    1a(12)(B)(ii) of the Commodity Exchange Act;
                        (C) is entered into only between persons
                    that are eligible contract participants as
                    described in subparagraphs (A), (B)(ii), or (C)
                    of section 1a(12) of the Commodity Exchange
                    Act, as in effect on the date of enactment of
                    the Commodity Futures Modernization Act of
                    2000, at the time the persons enter into the
                    swap agreement; and
                        (D) is an agreement, contract or
                    transaction in an excluded commodity (as
                    defined in section 1a(13) of the Commodity
                    Exchange Act).

    SEC. 403. EXCLUSION OF IDENTIFIED BANKING PRODUCTS COMMONLY OFFERED ON
                        OR BEFORE DECEMBER 5, 2000.

        No provision of the Commodity Exchange Act shall apply to,
    and the Commodity Futures Trading Commission shall not exercise
    regulatory authority with respect to, an identified banking
    product if--
                (1) an appropriate banking agency certifies that
            the product has been commonly offered, entered into, or
            provided in the United States by any bank on or before
            December 5, 2000, under applicable banking law; and
                (2) the product was not prohibited by the Commodity
            Exchange Act and not regulated by the Commodity Futures
            Trading Commission as a contract of sale of a commodity
            for future delivery (or an option on such a contract)
            or an option on a commodity, on or before December 5,
            2000.

    SEC. 404. EXCLUSION OF CERTAIN IDENTIFIED BANKING PRODUCTS OFFERED BY
                        BANKS AFTER DECEMBER 5, 2000.

        No provision of the Commodity Exchange Act shall apply to,
    and the Commodity Futures Trading Commission shall not exercise
    regulatory authority with respect to, an identified banking
    product which had not been commonly offered, entered into, or
    provided in the United States by any bank on or before December
    5, 2000, under applicable banking law if--
                (1) the product has no payment indexed to the
            value, level, or rate of, and does not provide for the
            delivery of, any commodity (as defined in section 1a(4)
            of the Commodity Exchange Act); or
                (2) the product or commodity is otherwise excluded
            from the Commodity Exchange Act.

    SEC. 405. EXCLUSION OF CERTAIN OTHER IDENTIFIED BANKING PRODUCTS.

        (a) In General.--No provision of the Commodity Exchange Act
    shall apply to, and the Commodity Futures Trading Commission
    shall not exercise regulatory authority with respect to, a
    banking product if the product is a hybrid instrument that is
    predominantly a banking product under the predominance test set
    forth in subsection (b).
        (b) Predominance Test.--A hybrid instrument shall be
    considered to be predominantly a banking product for purposes
    of this section if--
                (1) the issuer of the hybrid instrument receives
            payment in full of the purchase price of the hybrid
            instrument substantially contemporaneously with
            delivery of the hybrid instrument;
                (2) the purchaser or holder of the hybrid
            instrument is not required to make under the terms of
            the instrument, or any arrangement referred to in the
            instrument, any payment to the issuer in addition to
            the purchase price referred to in paragraph (1),
            whether as margin, settlement payment, or otherwise
            during the life of the hybrid instrument or at
            maturity;
                (3) the issuer of the hybrid instrument is not
            subject by the terms of the instrument to mark-to-
            market margining requirements; and
                (4) the hybrid instrument is not marketed as a
            contract of sale of a commodity for future delivery (or
            option on such a contract) subject to the Commodity
            Exchange Act.
        (c) Mark-to-Market Margining Requirement.--For purposes of
    subsection (b)(3), mark-to-market margining requirements shall
    not include the obligation of an issuer of a secured debt
    instrument to increase the amount of collateral held in pledge
    for the benefit of the purchaser of the secured debt instrument
    to secure the repayment obligations of the issuer under the
    secured debt instrument.

    SEC. 406. ADMINISTRATION OF THE PREDOMINANCE TEST.

        (a) In General.--No provision of the Commodity Exchange Act
    shall apply to, and the Commodity Futures Trading Commission
    shall not regulate, a hybrid instrument, unless the Commission
    determines, by or under a rule issued in accordance with this
    section, that--
                (1) the action is necessary and appropriate in the
            public interest;
                (2) the action is consistent with the Commodity
            Exchange Act and the purposes of the Commodity Exchange
            Act; and
                (3) the hybrid instrument is not predominantly a
            banking product under the predominance test set forth
            in section 405(b) of this Act.
        (b) Consultation.--Before commencing a rulemaking or making
    a determination pursuant to a rule issued under this title, the
    Commodity Futures Trading Commission shall consult with and
    seek the concurrence of the Board of Governors of the Federal
    Reserve System concerning--
                (1) the nature of the hybrid instrument; and
                (2) the history, purpose, extent, and
            appropriateness of the regulation of the hybrid
            instrument under the Commodity Exchange Act and under
            appropriate banking laws.
        (c) Objection to Commission Regulation.--
                (1) Filing of petition for review.--The Board of
            Governors of the Federal Reserve System may obtain
            review of any rule or determination referred to in
            subsection (a) in the United States Court of Appeals
            for the District of Columbia Circuit by filing in the
            court, not later than 60 days after the date of
            publication of the rule or determination, a written
            petition requesting that the rule or determination be
            set aside. Any proceeding to challenge any such rule or
            determination shall be expedited by the court.
                (2) Transmittal of petition and record.--A copy of
            a petition described in paragraph (1) shall be
            transmitted as soon as possible by the Clerk of the
            court to an officer or employee of the Commodity
            Futures Trading Commission designated for that purpose.
            Upon receipt of the petition, the Commission shall file
            with the court the rule or determination under review
            and any documents referred to therein, and any other
            relevant materials prescribed by the court.
                (3) Exclusive jurisdiction.--On the date of the
            filing of a petition under paragraph (1), the court
            shall have jurisdiction, which shall become exclusive
            on the filing of the materials set forth in paragraph
            (2), to affirm and enforce or to set aside the rule or
            determination at issue.
                (4) Standard of review.--The court shall determine
            to affirm and enforce or set aside a rule or
            determination of the Commodity Futures Trading
            Commission under this section, based on the
            determination of the court as to whether--
                        (A) the subject product is predominantly a
                    banking product; and
                        (B) making the provision or provisions of
                    the Commodity Exchange Act at issue applicable
                    to the subject instrument is appropriate in
                    light of the history, purpose, and extent of
                    regulation under such Act, this title, and
                    under the appropriate banking laws, giving
                    deference neither to the views of the Commodity
                    Futures Trading Commission nor the Board of
                    Governors of the Federal Reserve System.
                (5) Judicial stay.--The filing of a petition by the
            Board pursuant to paragraph (1) shall operate as a
            judicial stay, until the date on which the
            determination of the court is final (including any
            appeal of the determination).
                (6) Other authority to challenge.--Any aggrieved
            party may seek judicial review pursuant to section 6(c)
            of the Commodity Exchange Act of a determination or
            rulemaking by the Commodity Futures Trading Commission
            under this section.

    SEC. 407. EXCLUSION OF COVERED SWAP AGREEMENTS.

        No provision of the Commodity Exchange Act (other than
    section 5b of such Act with respect to the clearing of covered
    swap agreements) shall apply to, and the Commodity Futures
    Trading Commission shall not exercise regulatory authority with
    respect to, a covered swap agreement offered, entered into, or
    provided by a bank.

    SEC. 408. CONTRACT ENFORCEMENT.

        (a) Hybrid Instruments.--No hybrid instrument shall be
    void, voidable, or unenforceable, and no party to a hybrid
    instrument shall be entitled to rescind, or recover any payment
    made with respect to, a hybrid instrument under any provision
    of Federal or State law, based solely on the failure of the
    hybrid instrument to satisfy the predominance test set forth in
    section 405(b) of this Act or to comply with the terms or
    conditions of an exemption or exclusion from any provision of
    the Commodity Exchange Act or any regulation of the Commodity
    Futures Trading Commission.
        (b) Covered Swap Agreements.--No covered swap agreement
    shall be void, voidable, or unenforceable, and no party to a
    covered swap agreement shall be entitled to rescind, or recover
    any payment made with respect to, a covered swap agreement
    under any provision of Federal or State law, based solely on
    the failure of the covered swap agreement to comply with the
    terms or conditions of an exemption or exclusion from any
    provision of the Commodity Exchange Act or any regulation of
    the Commodity Futures Trading Commission.
        (c) Preemption.--This title shall supersede and preempt the
    application of any State or local law that prohibits or
    regulates gaming or the operation of bucket shops (other than
    antifraud provisions of general applicability) in the case of--
                (1) a hybrid instrument that is predominantly a
            banking product; or
                (2) a covered swap agreement.

     MEDICARE, MEDICAID, AND SCHIP BENEFITS IMPROVEMENT AND PROTECTION ACT
                                    OF 2000

          The conference agreement would enact the provisions of
    H.R. 5661, as introduced on December 14, 2000. The text of that
    bill follows:

     A BILL To amend titles XVIII, XIX, and XXI of the Social Security Act
      to provide benefits improvements and beneficiary protections in the
      Medicare and Medicaid Programs and the State child health insurance
    program (SCHIP), as revised by the Balanced Budget Act of 1997 and the
     Medicare, Medicaid, and SCHIP Balanced Budget Refinement Act of 1999,
                            and for other purposes.

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

    SECTION 1. SHORT TITLE; AMENDMENTS TO SOCIAL SECURITY ACT; REFERENCES
                        TO OTHER ACTS; TABLE OF CONTENTS.

        (a) Short Title.--This Act may be cited as the ``Medicare,
    Medicaid, and SCHIP Benefits Improvement and Protection Act of
    2000''.
        (b) Amendments to Social Security Act.--Except as otherwise
    specifically provided, whenever in this Act an amendment 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 that section or other provision of the Social Security Act.
        (c) References to Other Acts.--In this Act:
                (1) Balanced budget act of 1997.--The term ``BBA''
            means the Balanced Budget Act of 1997 (Public Law 105-
            33; 111 Stat. 251).
                (2) Medicare, medicaid, and schip balanced budget
            refinement act of 1999.--The term ``BBRA'' means the
            Medicare, Medicaid, and SCHIP Balanced Budget
            Refinement Act of 1999 (Appendix F, 113 Stat. 1501A-
            321), as enacted into law by section 1000(a)(6) of
            Public Law 106-113.
        (d) Table of Contents.--The table of contents of this Act
    is as follows:

    Sec. 1. Short title; amendments to Social Security Act; references to
              other Acts; table of contents.

                   TITLE I--MEDICARE BENEFICIARY IMPROVEMENTS

                    Subtitle A--Improved Preventive Benefits

    Sec. 101. Coverage of biennial screening pap smear and pelvic exams.
    Sec. 102. Coverage of screening for glaucoma.
    Sec. 103. Coverage of screening colonoscopy for average risk
              individuals.
    Sec. 104. Modernization of screening mammography benefit.
    Sec. 105. Coverage of medical nutrition therapy services for
              beneficiaries with diabetes or a renal disease.

                   Subtitle B--Other Beneficiary Improvements

    Sec. 111. Acceleration of reduction of beneficiary copayment for
              hospital outpatient department services.
    Sec. 112. Preservation of coverage of drugs and biologicals under part B
              of the medicare program.
    Sec. 113. Elimination of time limitation on medicare benefits for
              immunosuppressive drugs.
    Sec. 114. Imposition of billing limits on drugs.
    Sec. 115. Waiver of 24-month waiting period for medicare coverage of
              individuals disabled with amyotrophic lateral sclerosis (ALS).

                 Subtitle C--Demonstration Projects and Studies

    Sec. 121. Demonstration project for disease management for severely
              chronically ill medicare beneficiaries.
    Sec. 122. Cancer prevention and treatment demonstration for ethnic and
              racial minorities.
    Sec. 123. Study on medicare coverage of routine thyroid screening.
    Sec. 124. MedPAC study on consumer coalitions.
    Sec. 125. Study on limitation on State payment for medicare cost-sharing
              affecting access to services for qualified medicare
              beneficiaries.
    Sec. 126. Studies on preventive interventions in primary care for older
              Americans.
    Sec. 127. MedPAC study and report on medicare coverage of cardiac and
              pulmonary rehabilitation therapy services.
    Sec. 128. Lifestyle modification program demonstration.

                    TITLE II--RURAL HEALTH CARE IMPROVEMENTS

                 Subtitle A--Critical Access Hospital Provisions

    Sec. 201. Clarification of no beneficiary cost-sharing for clinical
              diagnostic laboratory tests furnished by critical access
              hospitals.
    Sec. 202. Assistance with fee schedule payment for professional services
              under all-inclusive rate.
    Sec. 203. Exemption of critical access hospital swing beds from SNF PPS.
    Sec. 204. Payment in critical access hospitals for emergency room on-
              call physicians.
    Sec. 205. Treatment of ambulance services furnished by certain critical
              access hospitals.
    Sec. 206. GAO study on certain eligibility requirements for critical
              access hospitals.

                  Subtitle B--Other Rural Hospitals Provisions

    Sec. 211. Treatment of rural disproportionate share hospitals.
    Sec. 212. Option to base eligibility for medicare dependent, small rural
              hospital program on discharges during 2 of the 3 most recently
              audited cost reporting periods.
    Sec. 213. Extension of option to use rebased target amounts to all sole
              community hospitals.
    Sec. 214. MedPAC analysis of impact of volume on per unit cost of rural
              hospitals with psychiatric units.

                       Subtitle C--Other Rural Provisions

    Sec. 221. Assistance for providers of ambulance services in rural areas.
    Sec. 222. Payment for certain physician assistant services.
    Sec. 223. Revision of medicare reimbursement for telehealth services.
    Sec. 224. Expanding access to rural health clinics.
    Sec. 225. MedPAC study on low-volume, isolated rural health care
              providers.

                    TITLE III--PROVISIONS RELATING TO PART A

                     Subtitle A--Inpatient Hospital Services

    Sec. 301. Revision of acute care hospital payment update for 2001.
    Sec. 302. Additional modification in transition for indirect medical
              education (IME) percentage adjustment.
    Sec. 303. Decrease in reductions for disproportionate share hospital
              (DSH) payments.
    Sec. 304. Wage index improvements.
    Sec. 305. Payment for inpatient services of rehabilitation hospitals.
    Sec. 306. Payment for inpatient services of psychiatric hospitals.
    Sec. 307. Payment for inpatient services of long-term care hospitals.

     Subtitle B--Adjustments to PPS Payments for Skilled Nursing Facilities

    Sec. 311. Elimination of reduction in skilled nursing facility (SNF)
              market basket update in 2001.
    Sec. 312. Increase in nursing component of PPS Federal rate.
    Sec. 313. Application of SNF consolidated billing requirement limited to
              part A covered stays.
    Sec. 314. Adjustment of rehabilitation RUGs to correct anomaly in
              payment rates.
    Sec. 315. Establishment of process for geographic reclassification.

                            Subtitle C--Hospice Care

    Sec. 321. 5 percent increase in payment base.
    Sec. 322. Clarification of physician certification.
    Sec. 323. MedPAC report on access to, and use of, hospice benefit.

                          Subtitle D--Other Provisions

    Sec. 331. Relief from medicare part A late enrollment penalty for group
              buy-in for State and local retirees.

                     TITLE IV--PROVISIONS RELATING TO PART B

                    Subtitle A--Hospital Outpatient Services

    Sec. 401. Revision of hospital outpatient PPS payment update.
    Sec. 402. Clarifying process and standards for determining eligibility
              of devices for pass-through payments under hospital outpatient
              PPS.
    Sec. 403. Application of OPD PPS transitional corridor payments to
              certain hospitals that did not submit a 1996 cost report.
    Sec. 404. Application of rules for determining provider-based status for
              certain entities.
    Sec. 405. Treatment of children's hospitals under prospective payment
              system.
    Sec. 406. Inclusion of temperature monitored cryoablation in
              transitional pass-through for certain medical devices, drugs,
              and biologicals under OPD PPS.

             Subtitle B--Provisions Relating to Physicians' Services

    Sec. 411. GAO studies relating to physicians' services.
    Sec. 412. Physician group practice demonstration.
    Sec. 413. Study on enrollment procedures for groups that retain
              independent contractor physicians.

                           Subtitle C--Other Services

    Sec. 421. 1-year extension of moratorium on therapy caps; report on
              standards for supervision of physical therapy assistants.
    Sec. 422. Update in renal dialysis composite rate.
    Sec. 423. Payment for ambulance services.
    Sec. 424. Ambulatory surgical centers.
    Sec. 425. Full update for durable medical equipment.
    Sec. 426. Full update for orthotics and prosthetics.
    Sec. 427. Establishment of special payment provisions and requirements
              for prosthetics and certain custom-fabricated orthotic items.
    Sec. 428. Replacement of prosthetic devices and parts.
    Sec. 429. Revised part B payment for drugs and biologicals and related
              services.
    Sec. 430. Contrast enhanced diagnostic procedures under hospital
              prospective payment system.
    Sec. 431. Qualifications for community mental health centers.
    Sec. 432. Payment of physician and nonphysician services in certain
              Indian providers.
    Sec. 433. GAO study on coverage of surgical first assisting services of
              certified registered nurse first assistants.
    Sec. 434. MedPAC study and report on medicare reimbursement for services
              provided by certain providers.
    Sec. 435. MedPAC study and report on medicare coverage of services
              provided by certain nonphysician providers.
    Sec. 436. GAO study and report on the costs of emergency and medical
              transportation services.
    Sec. 437. GAO studies and reports on medicare payments.
    Sec. 438. MedPAC study on access to outpatient pain management services.

                  TITLE V--PROVISIONS RELATING TO PARTS A AND B

                        Subtitle A--Home Health Services

    Sec. 501. 1-year additional delay in application of 15 percent reduction
              on payment limits for home health services.
    Sec. 502. Restoration of full home health market basket update for home
              health services for fiscal year 2001.
    Sec. 503. Temporary two-month periodic interim payment.
    Sec. 504. Use of telehealth in delivery of home health services.
    Sec. 505. Study on costs to home health agencies of purchasing
              nonroutine medical supplies.
    Sec. 506. Treatment of branch offices; GAO study on supervision of home
              health care provided in isolated rural areas.
    Sec. 507. Clarification of the homebound definition under the medicare
              home health benefit.
    Sec. 508. Temporary increase for home health services furnished in a
              rural area.

                  Subtitle B--Direct Graduate Medical Education

    Sec. 511. Increase in floor for direct graduate medical education
              payments.
    Sec. 512. Change in distribution formula for Medicare+Choice-related
              nursing and allied health education costs.

          Subtitle C--Changes in Medicare Coverage and Appeals Process

    Sec. 521. Revisions to medicare appeals process.
    Sec. 522. Revisions to medicare coverage process.

                Subtitle D--Improving Access to New Technologies

    Sec. 531. Reimbursement improvements for new clinical laboratory tests
              and durable medical equipment.
    Sec. 532. Retention of HCPCS level III codes.
    Sec. 533. Recognition of new medical technologies under inpatient
              hospital PPS.

                          Subtitle E--Other Provisions

    Sec. 541. Increase in reimbursement for bad debt.
    Sec. 542. Treatment of certain physician pathology services under
              medicare.
    Sec. 543. Extension of advisory opinion authority.
    Sec. 544. Change in annual MedPAC reporting.
    Sec. 545. Development of patient assessment instruments.
    Sec. 546. GAO report on impact of the Emergency Medical Treatment and
              Active Labor Act (EMTALA) on hospital emergency departments.
    Sec. 547. Clarification of application of temporary payment increases
              for 2001.

     TITLE VI--PROVISIONS RELATING TO PART C (MEDICARE+CHOICE PROGRAM) AND
                     OTHER MEDICARE MANAGED CARE PROVISIONS

                   Subtitle A--Medicare+Choice Payment Reforms

    Sec. 601. Increase in minimum payment amount.
    Sec. 602. Increase in minimum percentage increase.
    Sec. 603. Phase-in of risk adjustment.
    Sec. 604. Transition to revised Medicare+Choice payment rates.
    Sec. 605. Revision of payment rates for ESRD patients enrolled in
              Medicare+Choice plans.
    Sec. 606. Permitting premium reductions as additional benefits under
              Medicare+Choice plans.
    Sec. 607. Full implementation of risk adjustment for congestive heart
              failure enrollees for 2001.
    Sec. 608. Expansion of application of Medicare+Choice new entry bonus.
    Sec. 609. Report on inclusion of certain costs of the Department of
              Veterans Affairs and military facility services in calculating
              Medicare+Choice payment rates.

                    Subtitle B--Other Medicare+Choice Reforms

    Sec. 611. Payment of additional amounts for new benefits covered during
              a contract term.
    Sec. 612. Restriction on implementation of significant new regulatory
              requirements midyear.
    Sec. 613. Timely approval of marketing material that follows model
              marketing language.
    Sec. 614. Avoiding duplicative regulation.
    Sec. 615. Election of uniform local coverage policy for Medicare+Choice
              plan covering multiple localities.
    Sec. 616. Eliminating health disparities in Medicare+Choice program.
    Sec. 617. Medicare+Choice program compatibility with employer or union
              group health plans.
    Sec. 618. Special medigap enrollment antidiscrimination provision for
              certain beneficiaries.
    Sec. 619. Restoring effective date of elections and changes of elections
              of Medicare+Choice plans.
    Sec. 620. Permitting ESRD beneficiaries to enroll in another
              Medicare+Choice plan if the plan in which they are enrolled is
              terminated.
    Sec. 621. Providing choice for skilled nursing facility services under
              the Medicare+Choice program.
    Sec. 622. Providing for accountability of Medicare+Choice plans.
    Sec. 623. Increased civil money penalty for Medicare+Choice
              organizations that terminate contracts mid-year.

                     Subtitle C--Other Managed Care Reforms

    Sec. 631. 1-year extension of social health maintenance organization
              (SHMO) demonstration project.
    Sec. 632. Revised terms and conditions for extension of medicare
              community nursing organization (CNO) demonstration project.
    Sec. 633. Extension of medicare municipal health services demonstration
              projects.
    Sec. 634. Service area expansion for medicare cost contracts during
              transition period.

                               TITLE VII--MEDICAID

    Sec. 701. DSH payments.
    Sec. 702. New prospective payment system for Federally-qualified health
              centers and rural health clinics.
    Sec. 703. Streamlined approval of continued State-wide section 1115
              medicaid waivers.
    Sec. 704. Medicaid county-organized health systems.
    Sec. 705. Deadline for issuance of final regulation relating to medicaid
              upper payment limits.
    Sec. 706. Alaska FMAP.
    Sec. 707. 1-year extension of welfare-to-work transition.
    Sec. 708. Additional entities qualified to determine medicaid
              presumptive eligibility for low-income children.
    Sec. 709. Development of uniform QMB/SLMB application form.
    Sec. 710. Technical corrections.

              TITLE VIII--STATE CHILDREN'S HEALTH INSURANCE PROGRAM

    Sec. 801. Special rule for redistribution and availability of unused
              fiscal year 1998 and 1999 SCHIP allotments.
    Sec. 802. Authority to pay medicaid expansion SCHIP costs from title XXI
              appropriation.
    Sec. 803. Application of medicaid child presumptive eligibility
              provisions.

                           TITLE IX--OTHER PROVISIONS

                            Subtitle A--PACE Program

    Sec. 901. Extension of transition for current waivers.
    Sec. 902. Continuing of certain operating arrangements permitted.
    Sec. 903. Flexibility in exercising waiver authority.

       Subtitle B--Outreach to Eligible Low-Income Medicare Beneficiaries

    Sec. 911. Outreach on availability of medicare cost-sharing assistance
              to eligible low-income medicare beneficiaries.

                Subtitle C--Maternal and Child Health Block Grant

    Sec. 921. Increase in authorization of appropriations for the maternal
              and child health services block grant.

                              Subtitle D--Diabetes

    Sec. 931. Increase in appropriations for special diabetes programs for
              type I diabetes and Indians.
    Sec. 932. Appropriations for Ricky Ray Hemophilia Relief Fund.

              Subtitle E--Information on Nursing Facility Staffing

    Sec. 941. Posting of information on nursing facility staffing.

        Subtitle F--Adjustment of Multiemployer Plan Benefits Guaranteed

    Sec. 951. Multiemployer plan benefits guaranteed.

                   TITLE I--MEDICARE BENEFICIARY IMPROVEMENTS

                    Subtitle A--Improved Preventive Benefits

    SEC. 101. COVERAGE OF BIENNIAL SCREENING PAP SMEAR AND PELVIC EXAMS.

        (a) In General.--
                (1) Biennial screening pap smear.--Section
            1861(nn)(1) (42 U.S.C. 1395x(nn)(1)) is amended by
            striking ``3 years'' and inserting ``2 years''.
                (2) Biennial screening pelvic exam.--Section
            1861(nn)(2) (42 U.S.C. 1395x(nn)(2)) is amended by
            striking ``3 years'' and inserting ``2 years''.
        (b) Effective Date.--The amendments made by subsection (a)
    shall apply to items and services furnished on or after July 1,
    2001.

    SEC. 102. COVERAGE OF SCREENING FOR GLAUCOMA.

        (a) Coverage.--Section 1861(s)(2) (42 U.S.C. 1395x(s)(2))
    is amended--
                (1) by striking ``and'' at the end of subparagraph
            (S);
                (2) by inserting ``and'' at the end of subparagraph
            (T); and
                (3) by adding at the end the following:
                ``(U) screening for glaucoma (as defined in
            subsection (uu)) for individuals determined to be at
            high risk for glaucoma, individuals with a family
            history of glaucoma and individuals with diabetes;''.
        (b) Services Described.--Section 1861 (42 U.S.C. 1395x) is
    amended by adding at the end the following new subsection:

                            ``Screening for Glaucoma

        ``(uu) The term `screening for glaucoma' means a dilated
    eye examination with an intraocular pressure measurement, and a
    direct ophthalmoscopy or a slit-lamp biomicroscopic examination
    for the early detection of glaucoma which is furnished by or
    under the direct supervision of an optometrist or
    ophthalmologist who is legally authorized to furnish such
    services under State law (or the State regulatory mechanism
    provided by State law) of the State in which the services are
    furnished, as would otherwise be covered if furnished by a
    physician or as an incident to a physician's professional
    service, if the individual involved has not had such an
    examination in the preceding year.''.
        (c) Conforming Amendment.--Section 1862(a)(1)(F) (42 U.S.C.
    1395y(a)(1)(F)) is amended--
                (1) by striking ``and,''; and
                (2) by adding at the end the following: ``and, in
            the case of screening for glaucoma, which is performed
            more frequently than is provided under section
            1861(uu),''.
        (d) Effective Date.--The amendments made by this section
    shall apply to services furnished on or after January 1, 2002.

    SEC. 103. COVERAGE OF SCREENING COLONOSCOPY FOR AVERAGE RISK
                        INDIVIDUALS.

        (a) In General.--Section 1861(pp) (42 U.S.C. 1395x(pp)) is
    amended--
                (1) in paragraph (1)(C), by striking ``In the case
            of an individual at high risk for colorectal cancer,
            screening colonoscopy'' and inserting ``Screening
            colonoscopy''; and
                (2) in paragraph (2), by striking ``In paragraph
            (1)(C), an'' and inserting ``An''.
        (b) Frequency Limits for Screening Colonoscopy.--Section
    1834(d) (42 U.S.C. 1395m(d)) is amended--
                (1) in paragraph (2)(E)(ii), by inserting before
            the period at the end the following: ``or, in the case
            of an individual who is not at high risk for colorectal
            cancer, if the procedure is performed within the 119
            months after a previous screening colonoscopy''; and
                (2) in paragraph (3)--
                        (A) in the heading by striking ``for
                    individuals at high risk for colorectal
                    cancer'';
                        (B) in subparagraph (A), by striking ``for
                    individuals at high risk for colorectal cancer
                    (as defined in section 1861(pp)(2))''; and
                        (C) in subparagraph (E), by inserting
                    before the period at the end the following:
                    ``or for other individuals if the procedure is
                    performed within the 119 months after a
                    previous screening colonoscopy or within 47
                    months after a previous screening flexible
                    sigmoidoscopy''.
        (c) Effective Date.--The amendments made by this section
    shall apply to colorectal cancer screening services provided on
    or after July 1, 2001.

    SEC. 104. MODERNIZATION OF SCREENING MAMMOGRAPHY BENEFIT.

        (a) Inclusion in Physician Fee Schedule.--Section
    1848(j)(3) (42 U.S.C. 1395w-4(j)(3)) is amended by inserting
    ``(13),'' after ``(4),''.
        (b) Conforming Amendment.--Section 1834(c) (42 U.S.C.
    1395m(c)) is amended to read as follows:
        ``(c) Payment and Standards for Screening Mammography.--
                ``(1) In general.--With respect to expenses
            incurred for screening mammography (as defined in
            section 1861(jj)), payment may be made only--
                        ``(A) for screening mammography conducted
                    consistent with the frequency permitted under
                    paragraph (2); and
                        ``(B) if the screening mammography is
                    conducted by a facility that has a certificate
                    (or provisional certificate) issued under
                    section 354 of the Public Health Service Act.
                ``(2) Frequency covered.--
                        ``(A) In general.--Subject to revision by
                    the Secretary under subparagraph (B)--
                                ``(i) no payment may be made under
                            this part for screening mammography
                            performed on a woman under 35 years of
                            age;
                                ``(ii) payment may be made under
                            this part for only one screening
                            mammography performed on a woman over
                            34 years of age, but under 40 years of
                            age; and
                                ``(iii) in the case of a woman over
                            39 years of age, payment may not be
                            made under this part for screening
                            mammography performed within 11 months
                            following the month in which a previous
                            screening mammography was performed.
                        ``(B) Revision of frequency.--
                                ``(i) Review.--The Secretary, in
                            consultation with the Director of the
                            National Cancer Institute, shall review
                            periodically the appropriate frequency
                            for performing screening mammography,
                            based on age and such other factors as
                            the Secretary believes to be pertinent.
                                ``(ii) Revision of frequency.--The
                            Secretary, taking into consideration
                            the review made under clause (i), may
                            revise from time to time the frequency
                            with which screening mammography may be
                            paid for under this subsection.''.
        (c) Effective Date.--The amendments made by subsections (a)
    and (b) shall apply with respect to screening mammographies
    furnished on or after January 1, 2002.
        (d) Payment for New Technologies.--
                (1) Tests furnished in 2001.--
                        (A) Screening.--For a screening mammography
                    (as defined in section 1861(jj) of the Social
                    Security Act (42 U.S.C. 1395x(jj))) furnished
                    during the period beginning on April 1, 2001,
                    and ending on December 31, 2001, that uses a
                    new technology, payment for such screening
                    mammography shall be made as follows:
                                (i) In the case of a technology
                            which directly takes a digital image
                            (without involving film), in an amount
                            equal to 150 percent of the amount of
                            payment under section 1848 of such Act
                            (42 U.S.C. 1395w-4) for a bilateral
                            diagnostic mammography (under HCPCS
                            code 76091) for such year.
                                (ii) In the case of a technology
                            which allows conversion of a standard
                            film mammogram into a digital image and
                            subsequently analyzes such resulting
                            image with software to identify
                            possible problem areas, in an amount
                            equal to the limit that would otherwise
                            be applied under section 1834(c)(3) of
                            such Act (42 U.S.C. 1395m(c)(3)) for
                            2001, increased by $15.
                        (B) Bilateral diagnostic mammography.--For
                    a bilateral diagnostic mammography furnished
                    during the period beginning on April 1, 2001,
                    and ending on December 31, 2001, that uses a
                    new technology described in subparagraph (A),
                    payment for such mammography shall be the
                    amount of payment provided for under such
                    subparagraph.
                        (C) Allocation of amounts.--The Secretary
                    shall provide for an appropriate allocation of
                    the amounts under subparagraphs (A) and (B)
                    between the professional and technical
                    components.
                        (D) Implementation of provision.--The
                    Secretary of Health and Human Services may
                    implement the provisions of this paragraph by
                    program memorandum or otherwise.
                (2) Consideration of new hcpcs code for new
            technologies after 2001.--The Secretary shall
            determine, for such mammographies performed after 2001,
            whether the assignment of a new HCPCS code is
            appropriate for mammography that uses a new technology.
            If the Secretary determines that a new code is
            appropriate for such mammography, the Secretary shall
            provide for such new code for such tests furnished
            after 2001.
                (3) New technology described.--For purposes of this
            subsection, a new technology with respect to a
            mammography is an advance in technology with respect to
            the test or equipment that results in the following:
                        (A) A significant increase or decrease in
                    the resources used in the test or in the
                    manufacture of the equipment.
                        (B) A significant improvement in the
                    performance of the test or equipment.
                        (C) A significant advance in medical
                    technology that is expected to significantly
                    improve the treatment of medicare
                    beneficiaries.
                (4) HCPCS code defined.--The term ``HCPCS code''
            means a code under the Health Care Financing
            Administration Common Procedure Coding System (HCPCS).

    SEC. 105. COVERAGE OF MEDICAL NUTRITION THERAPY SERVICES FOR
                        BENEFICIARIES WITH DIABETES OR A RENAL DISEASE.

        (a) Coverage.--Section 1861(s)(2) (42 U.S.C. 1395x(s)(2)),
    as amended by section 102(a), is amended--
                (1) in subparagraph (T), by striking ``and'' at the
            end;
                (2) in subparagraph (U), by inserting ``and'' at
            the end; and
                (3) by adding at the end the following new
            subparagraph:
                ``(V) medical nutrition therapy services (as
            defined in subsection (vv)(1)) in the case of a
            beneficiary with diabetes or a renal disease who--
                        ``(i) has not received diabetes outpatient
                    self-management training services within a time
                    period determined by the Secretary;
                        ``(ii) is not receiving maintenance
                    dialysis for which payment is made under
                    section 1881; and
                        ``(iii) meets such other criteria
                    determined by the Secretary after consideration
                    of protocols established by dietitian or
                    nutrition professional organizations;''.
        (b) Services Described.--Section 1861 (42 U.S.C. 1395x), as
    amended by section 102(b), is amended by adding at the end the
    following:

    ``Medical Nutrition Therapy Services; Registered Dietitian or Nutrition
                                  Professional

        ``(vv)(1) The term `medical nutrition therapy services'
    means nutritional diagnostic, therapy, and counseling services
    for the purpose of disease management which are furnished by a
    registered dietitian or nutrition professional (as defined in
    paragraph (2)) pursuant to a referral by a physician (as
    defined in subsection (r)(1)).
        ``(2) Subject to paragraph (3), the term `registered
    dietitian or nutrition professional' means an individual who--
                ``(A) holds a baccalaureate or higher degree
            granted by a regionally accredited college or
            university in the United States (or an equivalent
            foreign degree) with completion of the academic
            requirements of a program in nutrition or dietetics, as
            accredited by an appropriate national accreditation
            organization recognized by the Secretary for this
            purpose;
                ``(B) has completed at least 900 hours of
            supervised dietetics practice under the supervision of
            a registered dietitian or nutrition professional; and
                ``(C)(i) is licensed or certified as a dietitian or
            nutrition professional by the State in which the
            services are performed; or
                ``(ii) in the case of an individual in a State that
            does not provide for such licensure or certification,
            meets such other criteria as the Secretary establishes.
        ``(3) Subparagraphs (A) and (B) of paragraph (2) shall not
    apply in the case of an individual who, as of the date of the
    enactment of this subsection, is licensed or certified as a
    dietitian or nutrition professional by the State in which
    medical nutrition therapy services are performed.''.
        (c) Payment.--Section 1833(a)(1) (42 U.S.C. 1395l(a)(1)) is
    amended--
                (1) by striking ``and'' before ``(S)''; and
                (2) by inserting before the semicolon at the end
            the following: ``, and (T) with respect to medical
            nutrition therapy services (as defined in section
            1861(vv)), the amount paid shall be 80 percent of the
            lesser of the actual charge for the services or 85
            percent of the amount determined under the fee schedule
            established under section 1848(b) for the same services
            if furnished by a physician''.
        (d) Application of Limits on Billing.--Section
    1842(b)(18)(C) (42 U.S.C. 1395u(b)(18)(C)) is amended by adding
    at the end the following new clause:
                ``(vi) A registered dietitian or nutrition
            professional.''.
        (e) Effective Date.--The amendments made by this section
    shall apply to services furnished on or after January 1, 2002.
        (f) Study.--Not later than July 1, 2003, the Secretary of
    Health and Human Services shall submit to Congress a report
    that contains recommendations with respect to the expansion to
    other medicare beneficiary populations of the medical nutrition
    therapy services benefit (furnished under the amendments made
    by this section).

                   Subtitle B--Other Beneficiary Improvements

    SEC. 111. ACCELERATION OF REDUCTION OF BENEFICIARY COPAYMENT FOR
                        HOSPITAL OUTPATIENT DEPARTMENT SERVICES.

        (a) Reducing the Upper Limit on Beneficiary Copayment.--
                (1) In general.--Section 1833(t)(8)(C) (42 U.S.C.
            1395l(t)(8)(C)) is amended to read as follows:
                        ``(C) Limitation on copayment amount.--
                                ``(i) To inpatient hospital
                            deductible amount.--In no case shall
                            the copayment amount for a procedure
                            performed in a year exceed the amount
                            of the inpatient hospital deductible
                            established under section 1813(b) for
                            that year.
                                ``(ii) To specified percentage.--
                            The Secretary shall reduce the national
                            unadjusted copayment amount for a
                            covered OPD service (or group of such
                            services) furnished in a year in a
                            manner so that the effective copayment
                            rate (determined on a national
                            unadjusted basis) for that service in
                            the year does not exceed the following
                            percentage:
                                        ``(I) For procedures
                                    performed in 2001, on or after
                                    April 1, 2001, 57 percent.
                                        ``(II) For procedures
                                    performed in 2002 or 2003, 55
                                    percent.
                                        ``(III) For procedures
                                    performed in 2004, 50 percent.
                                        ``(IV) For procedures
                                    performed in 2005, 45 percent.
                                        ``(V) For procedures
                                    performed in 2006 and
                                    thereafter, 40 percent.''.
                (2) Effective date.--The amendment made by
            paragraph (1) shall apply with respect to services
            furnished on or after April 1, 2001.
        (b) Construction Regarding Limiting Increases in Cost-
    Sharing.--Nothing in this Act or the Social Security Act shall
    be construed as preventing a hospital from waiving the amount
    of any coinsurance for outpatient hospital services under the
    medicare program under title XVIII of the Social Security Act
    that may have been increased as a result of the implementation
    of the prospective payment system under section 1833(t) of the
    Social Security Act (42 U.S.C. 1395l(t)).
        (c) GAO Study of Reduction in Medigap Premium Levels
    Resulting From Reductions in Coinsurance.--The Comptroller
    General of the United States shall work, in concert with the
    National Association of Insurance Commissioners, to evaluate
    the extent to which the premium levels for medicare
    supplemental policies reflect the reductions in coinsurance
    resulting from the amendment made by subsection (a). Not later
    than April 1, 2004, the Comptroller General shall submit to
    Congress a report on such evaluation and the extent to which
    the reductions in beneficiary coinsurance effected by such
    amendment have resulted in actual savings to medicare
    beneficiaries.

    SEC. 112. PRESERVATION OF COVERAGE OF DRUGS AND BIOLOGICALS UNDER PART
                        B OF THE MEDICARE PROGRAM.

        (a) In General.--Section 1861(s)(2) (42 U.S.C. 1395x(s)(2))
    is amended, in each of subparagraphs (A) and (B), by striking
    ``(including drugs and biologicals which cannot, as determined
    in accordance with regulations, be self-administered)'' and
    inserting ``(including drugs and biologicals which are not
    usually self-administered by the patient)''.
        (b) Effective Date.--The amendment made by subsection (a)
    shall apply to drugs and biologicals administered on or after
    the date of the enactment of this Act.

    SEC. 113. ELIMINATION OF TIME LIMITATION ON MEDICARE BENEFITS FOR
                        IMMUNOSUPPRESSIVE DRUGS.

        (a) In General.--Section 1861(s)(2)(J) (42 U.S.C.
    1395x(s)(2)(J)) is amended by striking ``, but only'' and all
    that follows up to the semicolon at the end.
        (b) Conforming Amendments.--
                (1) Extended coverage.--Section 1832 (42 U.S.C.
            1395k) is amended--
                        (A) by striking subsection (b); and
                        (B) by redesignating subsection (c) as
                    subsection (b).
                (2) Pass-through; report.--Section 227 of BBRA is
            amended by striking subsection (d).
        (c) Effective Date.--The amendment made by subsection (a)
    shall apply to drugs furnished on or after the date of the
    enactment of this Act.

    SEC. 114. IMPOSITION OF BILLING LIMITS ON DRUGS.

        (a) In General.--Section 1842(o) (42 U.S.C. 1395u(o)) is
    amended by adding at the end the following new paragraph:
        ``(3)(A) Payment for a charge for any drug or biological
    for which payment may be made under this part may be made only
    on an assignment-related basis.
        ``(B) The provisions of subsection (b)(18)(B) shall apply
    to charges for such drugs or biologicals in the same manner as
    they apply to services furnished by a practitioner described in
    subsection (b)(18)(C).''.
        (b) Effective Date.--The amendment made by subsection (a)
    shall apply to items furnished on or after January 1, 2001.

    SEC. 115. WAIVER OF 24-MONTH WAITING PERIOD FOR MEDICARE COVERAGE OF
                        INDIVIDUALS DISABLED WITH AMYOTROPHIC LATERAL
                        SCLEROSIS (ALS).

        (a) In General.--Section 226 (42 U.S.C. 426) is amended--
                (1) by redesignating subsection (h) as subsection
            (j) and by moving such subsection to the end of the
            section; and
                (2) by inserting after subsection (g) the following
            new subsection:
        ``(h) For purposes of applying this section in the case of
    an individual medically determined to have amyotrophic lateral
    sclerosis (ALS), the following special rules apply:
                ``(1) Subsection (b) shall be applied as if there
            were no requirement for any entitlement to benefits, or
            status, for a period longer than 1 month.
                ``(2) The entitlement under such subsection shall
            begin with the first month (rather than twenty-fifth
            month) of entitlement or status.
                ``(3) Subsection (f) shall not be applied.''.
        (b) Conforming Amendment.--Section 1837 (42 U.S.C. 1395p)
    is amended by adding at the end the following new subsection:
        ``(j) In applying this section in the case of an individual
    who is entitled to benefits under part A pursuant to the
    operation of section 226(h), the following special rules apply:
                ``(1) The initial enrollment period under
            subsection (d) shall begin on the first day of the
            first month in which the individual satisfies the
            requirement of section 1836(1).
                ``(2) In applying subsection (g)(1), the initial
            enrollment period shall begin on the first day of the
            first month of entitlement to disability insurance
            benefits referred to in such subsection.''.
        (c) Effective Date.--The amendments made by this section
    shall apply to benefits for months beginning July 1, 2001.

                 Subtitle C--Demonstration Projects and Studies

    SEC. 121. DEMONSTRATION PROJECT FOR DISEASE MANAGEMENT FOR SEVERELY
                        CHRONICALLY ILL MEDICARE BENEFICIARIES.

        (a) In General.--The Secretary of Health and Human Services
    shall conduct a demonstration project under this section (in
    this section referred to as the ``project'') to demonstrate the
    impact on costs and health outcomes of applying disease
    management to medicare beneficiaries with diagnosed, advanced-
    stage congestive heart failure, diabetes, or coronary heart
    disease. In no case may the number of participants in the
    project exceed 30,000 at any time.
        (b) Voluntary Participation.--
                (1) Eligibility.--Medicare beneficiaries are
            eligible to participate in the project only if--
                        (A) they meet specific medical criteria
                    demonstrating the appropriate diagnosis and the
                    advanced nature of their disease;
                        (B) their physicians approve of
                    participation in the project; and
                        (C) they are not enrolled in a
                    Medicare+Choice plan.
                (2) Benefits.--A beneficiary who is enrolled in the
            project shall be eligible--
                        (A) for disease management services related
                    to their chronic health condition; and
                        (B) for payment for all costs for
                    prescription drugs without regard to whether or
                    not they relate to the chronic health
                    condition, except that the project may provide
                    for modest cost-sharing with respect to
                    prescription drug coverage.
        (c) Contracts With Disease Management Organizations.--
                (1) In general.--The Secretary of Health and Human
            Services shall carry out the project through contracts
            with up to three disease management organizations. The
            Secretary shall not enter into such a contract with an
            organization unless the organization demonstrates that
            it can produce improved health outcomes and reduce
            aggregate medicare expenditures consistent with
            paragraph (2).
                (2) Contract provisions.--Under such contracts--
                        (A) such an organization shall be required
                    to provide for prescription drug coverage
                    described in subsection (b)(2)(B);
                        (B) such an organization shall be paid a
                    fee negotiated and established by the Secretary
                    in a manner so that (taking into account
                    savings in expenditures under parts A and B of
                    the medicare program under title XVIII of the
                    Social Security Act) there will be a net
                    reduction in expenditures under the medicare
                    program as a result of the project; and
                        (C) such an organization shall guarantee,
                    through an appropriate arrangement with a
                    reinsurance company or otherwise, the net
                    reduction in expenditures described in
                    subparagraph (B).
                (3) Payments.--Payments to such organizations shall
            be made in appropriate proportion from the Trust Funds
            established under title XVIII of the Social Security
            Act.
        (d) Application of Medigap Protections to Demonstration
    Project Enrollees.--(1) Subject to paragraph (2), the
    provisions of section 1882(s)(3) (other than clauses (i)
    through (iv) of subparagraph (B)) and 1882(s)(4) of the Social
    Security Act shall apply to enrollment (and termination of
    enrollment) in the demonstration project under this section, in
    the same manner as they apply to enrollment (and termination of
    enrollment) with a Medicare+Choice organization in a
    Medicare+Choice plan.
        (2) In applying paragraph (1)--
                (A) any reference in clause (v) or (vi) of section
            1882(s)(3)(B) of such Act to 12 months is deemed a
            reference to the period of the demonstration project;
            and
                (B) the notification required under section
            1882(s)(3)(D) of such Act shall be provided in a manner
            specified by the Secretary of Health and Human
            Services.
        (e) Duration.--The project shall last for not longer than 3
    years.
        (f) Waiver.--The Secretary of Health and Human Services
    shall waive such provisions of title XVIII of the Social
    Security Act as may be necessary to provide for payment for
    services under the project in accordance with subsection
    (c)(3).
        (g) Report.--The Secretary of Health and Human Services
    shall submit to Congress an interim report on the project not
    later than 2 years after the date it is first implemented and a
    final report on the project not later than 6 months after the
    date of its completion. Such reports shall include information
    on the impact of the project on costs and health outcomes and
    recommendations on the cost-effectiveness of extending or
    expanding the project.

    SEC. 122. CANCER PREVENTION AND TREATMENT DEMONSTRATION FOR ETHNIC AND
                        RACIAL MINORITIES.

        (a) Demonstration.--
                (1) In general.--The Secretary of Health and Human
            Services (in this section referred to as the
            ``Secretary'') shall conduct demonstration projects (in
            this section referred to as ``demonstration projects'')
            for the purpose of developing models and evaluating
            methods that--
                        (A) improve the quality of items and
                    services provided to target individuals in
                    order to facilitate reduced disparities in
                    early detection and treatment of cancer;
                        (B) improve clinical outcomes,
                    satisfaction, quality of life, and appropriate
                    use of medicare-covered services and referral
                    patterns among those target individuals with
                    cancer;
                        (C) eliminate disparities in the rate of
                    preventive cancer screening measures, such as
                    pap smears and prostate cancer screenings,
                    among target individuals; and
                        (D) promote collaboration with community-
                    based organizations to ensure cultural
                    competency of health care professionals and
                    linguistic access for persons with limited
                    English proficiency.
                (2) Target individual defined.--In this section,
            the term ``target individual'' means an individual of a
            racial and ethnic minority group, as defined by section
            1707 of the Public Health Service Act, who is entitled
            to benefits under part A, and enrolled under part B, of
            title XVIII of the Social Security Act.
        (b) Program Design.--
                (1) Initial design.--Not later than 1 year after
            the date of the enactment of this Act, the Secretary
            shall evaluate best practices in the private sector,
            community programs, and academic research of methods
            that reduce disparities among individuals of racial and
            ethnic minority groups in the prevention and treatment
            of cancer and shall design the demonstration projects
            based on such evaluation.
                (2) Number and project areas.--Not later than 2
            years after the date of the enactment of this Act, the
            Secretary shall implement at least 9 demonstration
            projects, including the following:
                        (A) 2 projects for each of the 4 following
                    major racial and ethnic minority groups:
                                (i) American Indians, including
                            Alaska Natives, Eskimos, and Aleuts.
                                (ii) Asian Americans and Pacific
                            Islanders.
                                (iii) Blacks.
                                (iv) Hispanics.
                    The 2 projects must target different ethnic
                    subpopulations.
                        (B) 1 project within the Pacific Islands.
                        (C) At least 1 project each in a rural area
                    and inner-city area.
                (3) Expansion of projects; implementation of
            demonstration project results.--If the initial report
            under subsection (c) contains an evaluation that
            demonstration projects--
                        (A) reduce expenditures under the medicare
                    program under title XVIII of the Social
                    Security Act; or
                        (B) do not increase expenditures under the
                    medicare program and reduce racial and ethnic
                    health disparities in the quality of health
                    care services provided to target individuals
                    and increase satisfaction of beneficiaries and
                    health care providers;
            the Secretary shall continue the existing demonstration
            projects and may expand the number of demonstration
            projects.
        (c) Report to Congress.--
                (1) In general.--Not later than 2 years after the
            date the Secretary implements the initial demonstration
            projects, and biannually thereafter, the Secretary
            shall submit to Congress a report regarding the
            demonstration projects.
                (2) Contents of report.--Each report under
            paragraph (1) shall include the following:
                        (A) A description of the demonstration
                    projects.
                        (B) An evaluation of--
                                (i) the cost-effectiveness of the
                            demonstration projects;
                                (ii) the quality of the health care
                            services provided to target individuals
                            under the demonstration projects; and
                                (iii) beneficiary and health care
                            provider satisfaction under the
                            demonstration projects.
                        (C) Any other information regarding the
                    demonstration projects that the Secretary
                    determines to be appropriate.
        (d) Waiver Authority.--The Secretary shall waive compliance
    with the requirements of title XVIII of the Social Security Act
    to such extent and for such period as the Secretary determines
    is necessary to conduct demonstration projects.
        (e) Funding.--
                (1) Demonstration projects.--
                        (A) State projects.--Except as provided in
                    subparagraph (B), the Secretary shall provide
                    for the transfer from the Federal Hospital
                    Insurance Trust Fund and the Federal
                    Supplementary Insurance Trust Fund under title
                    XVIII of the Social Security Act, in such
                    proportions as the Secretary determines to be
                    appropriate, of such funds as are necessary for
                    the costs of carrying out the demonstration
                    projects.
                        (B) Territory projects.--In the case of a
                    demonstration project described in subsection
                    (b)(2)(B), amounts shall be available only as
                    provided in any Federal law making
                    appropriations for the territories.
                (2) Limitation.--In conducting demonstration
            projects, the Secretary shall ensure that the aggregate
            payments made by the Secretary do not exceed the sum of
            the amount which the Secretary would have paid under
            the program for the prevention and treatment of cancer
            if the demonstration projects were not implemented,
            plus $25,000,000.

    SEC. 123. STUDY ON MEDICARE COVERAGE OF ROUTINE THYROID SCREENING.

        (a) Study.--The Secretary of Health and Human Services
    shall request the National Academy of Sciences, and as
    appropriate in conjunction with the United States Preventive
    Services Task Force, to conduct a study on the addition of
    coverage of routine thyroid screening using a thyroid
    stimulating hormone test as a preventive benefit provided to
    medicare beneficiaries under title XVIII of the Social Security
    Act for some or all medicare beneficiaries. In conducting the
    study, the Academy shall consider the short-term and long-term
    benefits, and costs to the medicare program, of such addition.
        (b) Report.--Not later than 2 years after the date of the
    enactment of this Act, the Secretary of Health and Human
    Services shall submit a report on the findings of the study
    conducted under subsection (a) to the Committee on Ways and
    Means and the Committee on Commerce of the House of
    Representatives and the Committee on Finance of the Senate.

    SEC. 124. MEDPAC STUDY ON CONSUMER COALITIONS.

        (a) Study.--The Medicare Payment Advisory Commission shall
    conduct a study that examines the use of consumer coalitions in
    the marketing of Medicare+Choice plans under the medicare
    program under title XVIII of the Social Security Act. The study
    shall examine--
                (1) the potential for increased efficiency in the
            medicare program through greater beneficiary knowledge
            of their health care options, decreased marketing costs
            of Medicare+Choice organizations, and creation of a
            group market;
                (2) the implications of Medicare+Choice plans and
            medicare supplemental policies (under section 1882 of
            the Social Security Act (42 U.S.C. 1395ss)) offering
            medicare beneficiaries in the same geographic location
            different benefits and premiums based on their
            affiliation with a consumer coalition;
                (3) how coalitions should be governed, how they
            should be accountable to the Secretary of Health and
            Human Services, and how potential conflicts of interest
            in the activities of consumer coalitions should be
            avoided; and
                (4) how such coalitions should be funded.
        (b) Report.--Not later than 1 year after the date of the
    enactment of this Act, the Commission shall submit to Congress
    a report on the study conducted under subsection (a). The
    report shall include a recommendation on whether and how a
    demonstration project might be conducted for the operation of
    consumer coalitions under the medicare program.
        (c) Consumer Coalition Defined.--For purposes of this
    section, the term ``consumer coalition'' means a nonprofit,
    community-based group of organizations that--
                (1) provides information to medicare beneficiaries
            about their health care options under the medicare
            program; and
                (2) negotiates benefits and premiums for medicare
            beneficiaries who are members or otherwise affiliated
            with the group of organizations with Medicare+Choice
            organizations offering Medicare+Choice plans, issuers
            of medicare supplemental policies, issuers of long-term
            care coverage, and pharmacy benefit managers.

    SEC. 125. STUDY ON LIMITATION ON STATE PAYMENT FOR MEDICARE COST-
                        SHARING AFFECTING ACCESS TO SERVICES FOR QUALIFIED
                        MEDICARE BENEFICIARIES.

        (a) In General.--The Secretary of Health and Human Services
    shall conduct a study to determine if access to certain
    services (including mental health services) for qualified
    medicare beneficiaries has been affected by limitations on a
    State's payment for medicare cost-sharing for such
    beneficiaries under section 1902(n) of the Social Security Act
    (42 U.S.C. 1396a(n)). As part of such study, the Secretary
    shall analyze the effect of such payment limitation on
    providers who serve a disproportionate share of such
    beneficiaries.
        (b) Report.--Not later than 1 year after the date of the
    enactment of this Act, the Secretary shall submit to Congress a
    report on the study under subsection (a). The report shall
    include recommendations regarding any changes that should be
    made to the State payment limits under section 1902(n) for
    qualified medicare beneficiaries to ensure appropriate access
    to services.

    SEC. 126. STUDIES ON PREVENTIVE INTERVENTIONS IN PRIMARY CARE FOR OLDER
                        AMERICANS.

        (a) Studies.--The Secretary of Health and Human Services,
    acting through the United States Preventive Services Task
    Force, shall conduct a series of studies designed to identify
    preventive interventions that can be delivered in the primary
    care setting and that are most valuable to older Americans.
        (b) Mission Statement.--The mission statement of the United
    States Preventive Services Task Force is amended to include the
    evaluation of services that are of particular relevance to
    older Americans.
        (c) Report.--Not later than 1 year after the date of the
    enactment of this Act, and annually thereafter, the Secretary
    of Health and Human Services shall submit to Congress a report
    on the conclusions of the studies conducted under subsection
    (a), together with recommendations for such legislation and
    administrative actions as the Secretary considers appropriate.

    SEC. 127. MEDPAC STUDY AND REPORT ON MEDICARE COVERAGE OF CARDIAC AND
                        PULMONARY REHABILITATION THERAPY SERVICES.

        (a) Study.--
                (1) In general.--The Medicare Payment Advisory
            Commission shall conduct a study on coverage of cardiac
            and pulmonary rehabilitation therapy services under the
            medicare program under title XVIII of the Social
            Security Act.
                (2) Focus.--In conducting the study under paragraph
            (1), the Commission shall focus on the appropriate--
                        (A) qualifying diagnoses required for
                    coverage of cardiac and pulmonary
                    rehabilitation therapy services;
                        (B) level of physician direct involvement
                    and supervision in furnishing such services;
                    and
                        (C) level of reimbursement for such
                    services.
        (b) Report.--Not later than 18 months after the date of the
    enactment of this Act, the Commission shall submit to Congress
    a report on the study conducted under subsection (a) together
    with such recommendations for legislation and administrative
    action as the Commission determines appropriate.

    SEC. 128. LIFESTYLE MODIFICATION PROGRAM DEMONSTRATION.

        (a) In General.--The Secretary of Health and Human Services
    shall carry out the demonstration project known as the
    Lifestyle Modification Program Demonstration, as described in
    the Health Care Financing Administration Memorandum of
    Understanding entered into on November 13, 2000, and as
    subsequently modified, (in this section referred to as the
    ``project'') in accordance with the following requirements:
                (1) The project shall include no fewer than 1,800
            medicare beneficiaries who complete under the project
            the entire course of treatment under the Lifestyle
            Modification Program.
                (2) The project shall be conducted over a course of
            4 years.
        (b) Study on Cost-Effectiveness.--
                (1) Study.--The Secretary shall conduct a study on
            the cost-effectiveness of the Lifestyle Modification
            Program as conducted under the project. In determining
            whether such Program is cost-effective, the Secretary
            shall determine (using a control group under a matched
            paired experimental design) whether expenditures
            incurred for medicare beneficiaries enrolled under the
            project exceed expenditures for the control group of
            medicare beneficiaries with similar health conditions
            who are not enrolled under the project.
                (2) Reports.--
                        (A) Initial report.--Not later that 1 year
                    after the date on which 900 medicare
                    beneficiaries have completed the entire course
                    of treatment under the Lifestyle Modification
                    Program under the project, the Secretary shall
                    submit to Congress an initial report on the
                    study conducted under paragraph (1).
                        (B) Final report.--Not later that 1 year
                    after the date on which 1,800 medicare
                    beneficiaries have completed the entire course
                    of treatment under such Program under the
                    project, the Secretary shall submit to Congress
                    a final report on the study conducted under
                    paragraph (1).

                    TITLE II--RURAL HEALTH CARE IMPROVEMENTS

                Subtitle A--Critical Access Hospital Provisions

    SEC. 201. CLARIFICATION OF NO BENEFICIARY COST-SHARING FOR CLINICAL
                        DIAGNOSTIC LABORATORY TESTS FURNISHED BY CRITICAL
                        ACCESS HOSPITALS.

        (a) Payment Clarification.--Section 1834(g) (42 U.S.C.
    1395m(g)) is amended by adding at the end the following new
    paragraph:
                ``(4) No beneficiary cost-sharing for clinical
            diagnostic laboratory services.--No coinsurance,
            deductible, copayment, or other cost-sharing otherwise
            applicable under this part shall apply with respect to
            clinical diagnostic laboratory services furnished as an
            outpatient critical access hospital service. Nothing in
            this title shall be construed as providing for payment
            for clinical diagnostic laboratory services furnished
            as part of outpatient critical access hospital
            services, other than on the basis described in this
            subsection.''.
        (b) Technical and Conforming Amendments.--
                (1) Paragraphs (1)(D)(i) and (2)(D)(i) of section
            1833(a) (42 U.S.C. 1395l(a)) are each amended by
            striking ``or which are furnished on an outpatient
            basis by a critical access hospital''.
                (2) Section 403(d)(2) of BBRA (113 Stat. 1501A-371)
            is amended by striking ``The amendment made by
            subsection (a) shall apply'' and inserting ``Paragraphs
            (1) through (3) of section 1834(g) of the Social
            Security Act (as amended by paragraph (1)) apply''.
        (c) Effective Dates.--The amendment made--
                (1) by subsection (a) shall apply to services
            furnished on or after the date of the enactment of
            BBRA;
                (2) by subsection (b)(1) shall apply as if included
            in the enactment of section 403(e)(1) of BBRA (113
            Stat. 1501A-371); and
                (3) by subsection (b)(2) shall apply as if included
            in the enactment of section 403(d)(2) of BBRA (113
            Stat. 1501A-371).

    SEC. 202. ASSISTANCE WITH FEE SCHEDULE PAYMENT FOR PROFESSIONAL
                        SERVICES UNDER ALL-INCLUSIVE RATE.

        (a) In General.--Section 1834(g)(2)(B) (42 U.S.C.
    1395m(g)(2)(B)) is amended by inserting ``115 percent of''
    before ``such amounts''.
        (b) Effective Date.--The amendment made by subsection (a)
    shall apply with respect to items and services furnished on or
    after July 1, 2001.

    SEC. 203. EXEMPTION OF CRITICAL ACCESS HOSPITAL SWING BEDS FROM SNF
                        PPS.

        (a) In General.--Section 1888(e)(7) (42 U.S.C.
    1395yy(e)(7)) is amended--
                (1) in the heading, by striking ``Transition for''
            and inserting ``Treatment of'';
                (2) in subparagraph (A), by striking ``In
            general.--The'' and inserting ``Transition.--Subject to
            subparagraph (C), the'';
                (3) in subparagraph (A), by inserting ``(other than
            critical access hospitals)'' after ``facilities
            described in subparagraph (B)'';
                (4) in subparagraph (B), by striking ``, for which
            payment'' and all that follows before the period; and
                (5) by adding at the end the following new
            subparagraph:
                        ``(C) Exemption from pps of swing-bed
                    services furnished in critical access
                    hospitals.--The prospective payment system
                    established under this subsection shall not
                    apply to services furnished by a critical
                    access hospital pursuant to an agreement under
                    section 1883.''.
        (b) Payment on a Reasonable Cost Basis for Swing Bed
    Services Furnished by Critical Access Hospitals.--Section
    1883(a) (42 U.S.C. 1395tt(a)) is amended--
                (1) in paragraph (2)(A), by inserting ``(other than
            a critical access hospital)'' after ``any hospital'';
            and
                (2) by adding at the end the following new
            paragraph:
        ``(3) Notwithstanding any other provision of this title, a
    critical access hospital shall be paid for covered skilled
    nursing facility services furnished under an agreement entered
    into under this section on the basis of the reasonable costs of
    such services (as determined under section 1861(v)).''.
        (c) Effective Date.--The amendments made by this section
    shall apply to cost reporting periods beginning on or after the
    date of the enactment of this Act.

    SEC. 204. PAYMENT IN CRITICAL ACCESS HOSPITALS FOR EMERGENCY ROOM ON-
                        CALL PHYSICIANS.

        (a) In General.--Section 1834(g) (42 U.S.C. 1395m(g)), as
    amended by section 201(a), is further amended by adding at the
    end the following new paragraph:
                ``(5) Coverage of costs for emergency room on-call
            physicians.--In determining the reasonable costs of
            outpatient critical access hospital services under
            paragraphs (1) and (2)(A), the Secretary shall
            recognize as allowable costs, amounts (as defined by
            the Secretary) for reasonable compensation and related
            costs for emergency room physicians who are on-call (as
            defined by the Secretary) but who are not present on
            the premises of the critical access hospital involved,
            and are not otherwise furnishing physicians' services
            and are not on-call at any other provider or
            facility.''.
        (b) Effective Date.--The amendment made by subsection (a)
    shall apply to cost reporting periods beginning on or after
    October 1, 2001.

    SEC. 205. TREATMENT OF AMBULANCE SERVICES FURNISHED BY CERTAIN CRITICAL
                        ACCESS HOSPITALS.

        (a) In General.--Section 1834(l) (42 U.S.C. 1395m(l)) is
    amended by adding at the end the following new paragraph:
                ``(8) Services furnished by critical access
            hospitals.--Notwithstanding any other provision of this
            subsection, the Secretary shall pay the reasonable
            costs incurred in furnishing ambulance services if such
            services are furnished--
                        ``(A) by a critical access hospital (as
                    defined in section 1861(mm)(1)), or
                        ``(B) by an entity that is owned and
                    operated by a critical access hospital,
            but only if the critical access hospital or entity is
            the only provider or supplier of ambulance services
            that is located within a 35-mile drive of such critical
            access hospital.''.
        (b) Conforming Amendment.--Section 1833(a)(1)(R) (42 U.S.C.
    1395l(a)(1)(R)) is amended--
                (1) by striking ``ambulance service,'' and
            inserting ``ambulance services, (i)''; and
                (2) by inserting before the comma at the end the
            following: ``and (ii) with respect to ambulance
            services described in section 1834(l)(8), the amounts
            paid shall be the amounts determined under section
            1834(g) for outpatient critical access hospital
            services''.
        (c) Effective Date.--The amendments made by this section
    shall apply to services furnished on or after the date of the
    enactment of this Act.

    SEC. 206. GAO STUDY ON CERTAIN ELIGIBILITY REQUIREMENTS FOR CRITICAL
                        ACCESS HOSPITALS.

        (a) Study.--The Comptroller General of the United States
    shall conduct a study on the eligibility requirements for
    critical access hospitals under section 1820(c) of the Social
    Security Act (42 U.S.C. 1395i-4(c)) with respect to limitations
    on average length of stay and number of beds in such a
    hospital, including an analysis of--
                (1) the feasibility of having a distinct part unit
            as part of a critical access hospital for purposes of
            the medicare program under title XVIII of such Act; and
                (2) the effect of seasonal variations in patient
            admissions on critical access hospital eligibility
            requirements with respect to limitations on average
            annual length of stay and number of beds.
        (b) Report.--Not later than 1 year after the date of the
    enactment of this Act, the Comptroller General shall submit to
    Congress a report on the study conducted under subsection (a)
    together with recommendations regarding--
                (1) whether distinct part units should be permitted
            as part of a critical access hospital under the
            medicare program;
                (2) if so permitted, the payment methodologies that
            should apply with respect to services provided by such
            units;
                (3) whether, and to what extent, such units should
            be included in or excluded from the bed limits
            applicable to critical access hospitals under the
            medicare program; and
                (4) any adjustments to such eligibility
            requirements to account for seasonal variations in
            patient admissions.

                  Subtitle B--Other Rural Hospitals Provisions

    SEC. 211. TREATMENT OF RURAL DISPROPORTIONATE SHARE HOSPITALS.

        (a) Application of Uniform Threshold.--Section
    1886(d)(5)(F)(v) (42 U.S.C. 1395ww(d)(5)(F)(v)) is amended--
                (1) in subclause (II), by inserting ``(or 15
            percent, for discharges occurring on or after April 1,
            2001)'' after ``30 percent'';
                (2) in subclause (III), by inserting ``(or 15
            percent, for discharges occurring on or after April 1,
            2001)'' after ``40 percent''; and
                (3) in subclause (IV), by inserting ``(or 15
            percent, for discharges occurring on or after April 1,
            2001)'' after ``45 percent''.
        (b) Adjustment of Payment Formulas.--
                (1) Sole community hospitals.--Section
            1886(d)(5)(F) (42 U.S.C. 1395ww(d)(5)(F)) is amended--
                        (A) in clause (iv)(VI), by inserting after
                    ``10 percent'' the following: ``or, for
                    discharges occurring on or after April 1, 2001,
                    is equal to the percent determined in
                    accordance with clause (x)''; and
                        (B) by adding at the end the following new
                    clause:
        ``(x) For purposes of clause (iv)(VI) (relating to sole
    community hospitals), in the case of a hospital for a cost
    reporting period with a disproportionate patient percentage (as
    defined in clause (vi)) that--
                ``(I) is less than 19.3, the disproportionate share
            adjustment percentage is determined in accordance with
            the following formula: (P-15)(.65) + 2.5;
                ``(II) is equal to or exceeds 19.3, but is less
            than 30.0, such adjustment percentage is equal to 5.25
            percent; or
                ``(III) is equal to or exceeds 30, such adjustment
            percentage is equal to 10 percent,
    where `P' is the hospital's disproportionate patient percentage
    (as defined in clause (vi)).''.
                (2) Rural referral centers.--Such section is
            further amended--
                        (A) in clause (iv)(V), by inserting after
                    ``clause (viii)'' the following: ``or, for
                    discharges occurring on or after April 1, 2001,
                    is equal to the percent determined in
                    accordance with clause (xi)''; and
                        (B) by adding at the end the following new
                    clause:
        ``(xi) For purposes of clause (iv)(V) (relating to rural
    referral centers), in the case of a hospital for a cost
    reporting period with a disproportionate patient percentage (as
    defined in clause (vi)) that--
                ``(I) is less than 19.3, the disproportionate share
            adjustment percentage is determined in accordance with
            the following formula: (P-15)(.65) + 2.5;
                ``(II) is equal to or exceeds 19.3, but is less
            than 30.0, such adjustment percentage is equal to 5.25
            percent; or
                ``(III) is equal to or exceeds 30, such adjustment
            percentage is determined in accordance with the
            following formula: (P-30)(.6) + 5.25,
    where `P' is the hospital's disproportionate patient percentage
    (as defined in clause (vi)).''.
                (3) Small rural hospitals generally.--Such section
            is further amended--
                        (A) in clause (iv)(III), by inserting after
                    ``4 percent'' the following: ``or, for
                    discharges occurring on or after April 1, 2001,
                    is equal to the percent determined in
                    accordance with clause (xii)''; and
                        (B) by adding at the end the following new
                    clause:
        ``(xii) For purposes of clause (iv)(III) (relating to small
    rural hospitals generally), in the case of a hospital for a
    cost reporting period with a disproportionate patient
    percentage (as defined in clause (vi)) that--
                ``(I) is less than 19.3, the disproportionate share
            adjustment percentage is determined in accordance with
            the following formula: (P-15)(.65) + 2.5; or
                ``(II) is equal to or exceeds 19.3, such adjustment
            percentage is equal to 5.25 percent,
    where `P' is the hospital's disproportionate patient percentage
    (as defined in clause (vi)).''.
                (4) Hospitals that are both sole community
            hospitals and rural referral centers.--Such section is
            further amended, in clause (iv)(IV), by inserting after
            ``clause (viii)'' the following: ``or, for discharges
            occurring on or after April 1, 2001, the greater of the
            percentages determined under clause (x) or (xi)''.
                (5) Urban hospitals with less than 100 beds.--Such
            section is further amended--
                        (A) in clause (iv)(II), by inserting after
                    ``5 percent'' the following: ``or, for
                    discharges occurring on or after April 1, 2001,
                    is equal to the percent determined in
                    accordance with clause (xiii)''; and
                        (B) by adding at the end the following new
                    clause:
        ``(xiii) For purposes of clause (iv)(II) (relating to urban
    hospitals with less than 100 beds), in the case of a hospital
    for a cost reporting period with a disproportionate patient
    percentage (as defined in clause (vi)) that--
                ``(I) is less than 19.3, the disproportionate share
            adjustment percentage is determined in accordance with
            the following formula: (P-15)(.65) + 2.5; or
                ``(II) is equal to or exceeds 19.3, such adjustment
            percentage is equal to 5.25 percent,
    where `P' is the hospital's disproportionate patient percentage
    (as defined in clause (vi)).''.

    SEC. 212. OPTION TO BASE ELIGIBILITY FOR MEDICARE DEPENDENT, SMALL
                        RURAL HOSPITAL PROGRAM ON DISCHARGES DURING 2 OF
                        THE 3 MOST RECENTLY AUDITED COST REPORTING PERIODS.

        (a) In General.--Section 1886(d)(5)(G)(iv)(IV) (42 U.S.C.
    1395ww(d)(5)(G)(iv)(IV)) is amended by inserting ``, or 2 of
    the 3 most recently audited cost reporting periods for which
    the Secretary has a settled cost report,'' after ``1987''.
        (b) Effective Date.--The amendment made by this section
    shall apply with respect to cost reporting periods beginning on
    or after April 1, 2001.

    SEC. 213. EXTENSION OF OPTION TO USE REBASED TARGET AMOUNTS TO ALL SOLE
                        COMMUNITY HOSPITALS.

        (a) In General.--Section 1886(b)(3)(I)(i) (42 U.S.C.
    1395ww(b)(3)(I)(i)) is amended--
                (1) in the matter preceding subclause (I), by
            striking ``that for its cost reporting period beginning
            during 1999'' and all that follows through ``for such
            target amount'' and inserting ``there shall be
            substituted for the amount otherwise determined under
            subsection (d)(5)(D)(i), if such substitution results
            in a greater amount of payment under this section for
            the hospital'';
                (2) in subclause (I), by striking ``target amount
            otherwise applicable'' and all that follows through
            ``target amount')'' and inserting ``the amount
            otherwise applicable to the hospital under subsection
            (d)(5)(D)(i) (referred to in this clause as the
            `subsection (d)(5)(D)(i) amount')''; and
                (3) in each of subclauses (II) and (III), by
            striking ``subparagraph (C) target amount'' and
            inserting ``subsection (d)(5)(D)(i) amount''.
        (b) Effective Date.--The amendments made by this section
    shall take effect as if included in the enactment of section
    405 of BBRA (113 Stat. 1501A-372).

    SEC. 214. MEDPAC ANALYSIS OF IMPACT OF VOLUME ON PER UNIT COST OF RURAL
                        HOSPITALS WITH PSYCHIATRIC UNITS.

        The Medicare Payment Advisory Commission, in its study
    conducted pursuant to subsection (a) of section 411 of BBRA
    (113 Stat. 1501A-377), shall include--
                (1) in such study an analysis of the impact of
            volume on the per unit cost of rural hospitals with
            psychiatric units; and
                (2) in its report under subsection (b) of such
            section a recommendation on whether special treatment
            for such hospitals may be warranted.

                       Subtitle C--Other Rural Provisions

    SEC. 221. ASSISTANCE FOR PROVIDERS OF AMBULANCE SERVICES IN RURAL
                        AREAS.

        (a) Transitional Assistance in Certain Mileage Rates.--
    Section 1834(l) (42 U.S.C. 1395m(l)) is amended by adding at
    the end the following new paragraph:
                ``(8) Transitional assistance for rural
            providers.--In the case of ground ambulance services
            furnished on or after July 1, 2001, and before January
            1, 2004, for which the transportation originates in a
            rural area (as defined in section 1886(d)(2)(D)) or in
            a rural census tract of a metropolitan statistical area
            (as determined under the most recent modification of
            the Goldsmith Modification, originally published in the
            Federal Register on February 27, 1992 (57 Fed. Reg.
            6725)), the fee schedule established under this
            subsection shall provide that, with respect to the
            payment rate for mileage for a trip above 17 miles, and
            up to 50 miles, the rate otherwise established shall be
            increased by not less than \1/2\ of the additional
            payment per mile established for the first 17 miles of
            such a trip originating in a rural area.''.
        (b) GAO Studies on the Costs of Ambulance Services
    Furnished in Rural Areas.--
                (1) Study.--The Comptroller General of the United
            States shall conduct a study on each of the matters
            described in paragraph (2).
                (2) Matters described.--The matters referred to in
            paragraph (1) are the following:
                        (A) The cost of efficiently providing
                    ambulance services for trips originating in
                    rural areas, with special emphasis on
                    collection of cost data from rural providers.
                        (B) The means by which rural areas with low
                    population densities can be identified for the
                    purpose of designating areas in which the cost
                    of providing ambulance services would be
                    expected to be higher than similar services
                    provided in more heavily populated areas
                    because of low usage. Such study shall also
                    include an analysis of the additional costs of
                    providing ambulance services in areas
                    designated under the previous sentence.
                (3) Report.--Not later than June 30, 2002, the
            Comptroller General shall submit to Congress a report
            on the results of the studies conducted under paragraph
            (1) and shall include recommendations on steps that
            should be taken to assure access to ambulance services
            in rural areas.
        (c) Adjustment in Rural Rates.--In providing for
    adjustments under subparagraph (D) of section 1834(l)(2) of the
    Social Security Act (42 U.S.C. 1395m(l)(2)) for years beginning
    with 2004, the Secretary of Health and Human Services shall
    take into consideration the recommendations contained in the
    report under subsection (b)(2) and shall adjust the fee
    schedule payment rates under such section for ambulance
    services provided in low density rural areas based on the
    increased cost (if any) of providing such services in such
    areas.
        (d) Effective Date.--The amendment made by subsection (a)
    shall apply to services furnished on or after July 1, 2001. In
    applying such amendment to services furnished on or after such
    date and before January 1, 2002, the amount of the rate
    increase provided under such amendment shall be equal to $1.25
    per mile.

    SEC. 222. PAYMENT FOR CERTAIN PHYSICIAN ASSISTANT SERVICES.

        (a) Payment for Certain Physician Assistant Services.--
    Section 1842(b)(6)(C) (42 U.S.C. 1395u(b)(6)(C)) is amended--
                (1) by striking ``for such services provided before
            January 1, 2003,''; and
                (2) by striking the semicolon at the end and
            inserting a comma.
        (b) Effective Date.--The amendments made by subsection (a)
    shall take effect on the date of the enactment of this Act.

    SEC. 223. REVISION OF MEDICARE REIMBURSEMENT FOR TELEHEALTH SERVICES.

        (a) Time Limit for BBA Provision.--Section 4206(a) of BBA
    (42 U.S.C. 1395l note) is amended by striking ``Not later than
    January 1, 1999'' and inserting ``For services furnished on and
    after January 1, 1999, and before October 1, 2001''.
        (b) Expansion of Medicare Payment for Telehealth
    Services.--Section 1834 (42 U.S.C. 1395m) is amended by adding
    at the end the following new subsection:
        ``(m) Payment for Telehealth Services.--
                ``(1) In general.--The Secretary shall pay for
            telehealth services that are furnished via a
            telecommunications system by a physician (as defined in
            section 1861(r)) or a practitioner (described in
            section 1842(b)(18)(C)) to an eligible telehealth
            individual enrolled under this part notwithstanding
            that the individual physician or practitioner providing
            the telehealth service is not at the same location as
            the beneficiary. For purposes of the preceding
            sentence, in the case of any Federal telemedicine
            demonstration program conducted in Alaska or Hawaii,
            the term `telecommunications system' includes store-
            and-forward technologies that provide for the
            asynchronous transmission of health care information in
            single or multimedia formats.
                ``(2) Payment amount.--
                        ``(A) Distant site.--The Secretary shall
                    pay to a physician or practitioner located at a
                    distant site that furnishes a telehealth
                    service to an eligible telehealth individual an
                    amount equal to the amount that such physician
                    or practitioner would have been paid under this
                    title had such service been furnished without
                    the use of a telecommunications system.
                        ``(B) Facility fee for originating site.--
                    With respect to a telehealth service, subject
                    to section 1833(a)(1)(U), there shall be paid
                    to the originating site a facility fee equal
                    to--
                                ``(i) for the period beginning on
                            October 1, 2001, and ending on December
                            31, 2001, and for 2002, $20; and
                                ``(ii) for a subsequent year, the
                            facility fee specified in clause (i) or
                            this clause for the preceding year
                            increased by the percentage increase in
                            the MEI (as defined in section
                            1842(i)(3)) for such subsequent year.
                        ``(C) Telepresenter not required.--Nothing
                    in this subsection shall be construed as
                    requiring an eligible telehealth individual to
                    be presented by a physician or practitioner at
                    the originating site for the furnishing of a
                    service via a telecommunications system, unless
                    it is medically necessary (as determined by the
                    physician or practitioner at the distant site).
                ``(3) Limitation on beneficiary charges.--
                        ``(A) Physician and practitioner.--The
                    provisions of section 1848(g) and subparagraphs
                    (A) and (B) of section 1842(b)(18) shall apply
                    to a physician or practitioner receiving
                    payment under this subsection in the same
                    manner as they apply to physicians or
                    practitioners under such sections.
                        ``(B) Originating site.--The provisions of
                    section 1842(b)(18) shall apply to originating
                    sites receiving a facility fee in the same
                    manner as they apply to practitioners under
                    such section.
                ``(4) Definitions.--For purposes of this
            subsection:
                        ``(A) Distant site.--The term `distant
                    site' means the site at which the physician or
                    practitioner is located at the time the service
                    is provided via a telecommunications system.
                        ``(B) Eligible telehealth individual.--The
                    term `eligible telehealth individual' means an
                    individual enrolled under this part who
                    receives a telehealth service furnished at an
                    originating site.
                        ``(C) Originating site.--
                                ``(i) In general.--The term
                            `originating site' means only those
                            sites described in clause (ii) at which
                            the eligible telehealth individual is
                            located at the time the service is
                            furnished via a telecommunications
                            system and only if such site is
                            located--
                                        ``(I) in an area that is
                                    designated as a rural health
                                    professional shortage area
                                    under section 332(a)(1)(A) of
                                    the Public Health Service Act
                                    (42 U.S.C. 254e(a)(1)(A));
                                        ``(II) in a county that is
                                    not included in a Metropolitan
                                    Statistical Area; or
                                        ``(III) from an entity that
                                    participates in a Federal
                                    telemedicine demonstration
                                    project that has been approved
                                    by (or receives funding from)
                                    the Secretary of Health and
                                    Human Services as of December
                                    31, 2000.
                                ``(ii) Sites described.--The sites
                            referred to in clause (i) are the
                            following sites:
                                        ``(I) The office of a
                                    physician or practitioner.
                                        ``(II) A critical access
                                    hospital (as defined in section
                                    1861(mm)(1)).
                                        ``(III) A rural health
                                    clinic (as defined in section
                                    1861(aa)(s)).
                                        ``(IV) A Federally
                                    qualified health center (as
                                    defined in section
                                    1861(aa)(4)).
                                        ``(V) A hospital (as
                                    defined in section 1861(e)).
                        ``(D) Physician.--The term `physician' has
                    the meaning given that term in section 1861(r).
                        ``(E) Practitioner.--The term
                    `practitioner' has the meaning given that term
                    in section 1842(b)(18)(C).
                        ``(F) Telehealth service.--
                                ``(i) In general.--The term
                            `telehealth service' means professional
                            consultations, office visits, and
                            office psychiatry services (identified
                            as of July 1, 2000, by HCPCS codes
                            99241-99275, 99201-99215, 90804-90809,
                            and 90862 (and as subsequently modified
                            by the Secretary)), and any additional
                            service specified by the Secretary.
                                ``(ii) Yearly update.--The
                            Secretary shall establish a process
                            that provides, on an annual basis, for
                            the addition or deletion of services
                            (and HCPCS codes), as appropriate, to
                            those specified in clause (i) for
                            authorized payment under paragraph
                            (1).''.
        (c) Conforming Amendment.--Section 1833(a)(1) (42 U.S.C.
    1395l(1)), as amended by section 105(c), is further amended--
                (1) by striking ``and (T)'' and inserting ``(T)'';
            and
                (2) by inserting before the semicolon at the end
            the following: ``, and (U) with respect to facility
            fees described in section 1834(m)(2)(B), the amounts
            paid shall be 80 percent of the lesser of the actual
            charge or the amounts specified in such section''.
        (d) Study and Report on Additional Coverage.--
                (1) Study.--The Secretary of Health and Human
            Services shall conduct a study to identify--
                        (A) settings and sites for the provision of
                    telehealth services that are in addition to
                    those permitted under section 1834(m) of the
                    Social Security Act, as added by subsection
                    (b);
                        (B) practitioners that may be reimbursed
                    under such section for furnishing telehealth
                    services that are in addition to the
                    practitioners that may be reimbursed for such
                    services under such section; and
                        (C) geographic areas in which telehealth
                    services may be reimbursed that are in addition
                    to the geographic areas where such services may
                    be reimbursed under such section.
                (2) Report.--Not later than 2 years after the date
            of the enactment of this Act, the Secretary shall
            submit to Congress a report on the study conducted
            under paragraph (1) together with such recommendations
            for legislation that the Secretary determines are
            appropriate.
        (e) Effective Date.--The amendments made by subsections (b)
    and (c) shall be effective for services furnished on or after
    October 1, 2001.

    SEC. 224. EXPANDING ACCESS TO RURAL HEALTH CLINICS.

        (a) In General.--The matter in section 1833(f) (42 U.S.C.
    1395l(f)) preceding paragraph (1) is amended by striking
    ``rural hospitals'' and inserting ``hospitals''.
        (b) Effective Date.--The amendment made by subsection (a)
    shall apply to services furnished on or after July 1, 2001.

    SEC. 225. MEDPAC STUDY ON LOW-VOLUME, ISOLATED RURAL HEALTH CARE
                        PROVIDERS.

        (a) Study.--The Medicare Payment Advisory Commission shall
    conduct a study on the effect of low patient and procedure
    volume on the financial status of low-volume, isolated rural
    health care providers participating in the medicare program
    under title XVIII of the Social Security Act.
        (b) Report.--Not later than 18 months after the date of the
    enactment of this Act, the Commission shall submit to Congress
    a report on the study conducted under subsection (a)
    indicating--
                (1) whether low-volume, isolated rural health care
            providers are having, or may have, significantly
            decreased medicare margins or other financial
            difficulties resulting from any of the payment
            methodologies described in subsection (c);
                (2) whether the status as a low-volume, isolated
            rural health care provider should be designated under
            the medicare program and any criteria that should be
            used to qualify for such a status; and
                (3) any changes in the payment methodologies
            described in subsection (c) that are necessary to
            provide appropriate reimbursement under the medicare
            program to low-volume, isolated rural health care
            providers (as designated pursuant to paragraph (2)).
        (c) Payment Methodologies Described.--The payment
    methodologies described in this subsection are the following:
                (1) The prospective payment system for hospital
            outpatient department services under section 1833(t) of
            the Social Security Act (42 U.S.C. 1395l(t)).
                (2) The fee schedule for ambulance services under
            section 1834(l) of such Act (42 U.S.C. 1395m(l)).
                (3) The prospective payment system for inpatient
            hospital services under section 1886 of such Act (42
            U.S.C. 1395ww).
                (4) The prospective payment system for routine
            service costs of skilled nursing facilities under
            section 1888(e) of such Act (42 U.S.C. 1395yy(e)).
                (5) The prospective payment system for home health
            services under section 1895 of such Act (42 U.S.C.
            1395fff).

                    TITLE III--PROVISIONS RELATING TO PART A

                    Subtitle A--Inpatient Hospital Services

    SEC. 301. REVISION OF ACUTE CARE HOSPITAL PAYMENT UPDATE FOR 2001.

        (a) In General.--Section 1886(b)(3)(B)(i) (42 U.S.C.
    1395ww(b)(3)(B)(i)) is amended--
                (1) in subclause (XVI), by striking ``minus 1.1
            percentage points for hospitals (other than sole
            community hospitals) in all areas, and the market
            basket percentage increase for sole community
            hospitals,'' and inserting ``for hospitals in all
            areas,'';
                (2) in subclause (XVII)--
                        (A) by striking ``minus 1.1 percentage
                    points'' and inserting ``minus 0.55 percentage
                    points; and
                        (B) by striking ``and'' at the end;
                (3) by redesignating subclause (XVIII) as subclause
            (XIX);
                (4) in subclause (XIX), as so redesignated, by
            striking ``fiscal year 2003'' and inserting ``fiscal
            year 2004''; and
                (5) by inserting after subclause (XVII) the
            following new subclause:
                ``(XVIII) for fiscal year 2003, the market basket
            percentage increase minus 0.55 percentage points for
            hospitals in all areas, and''.
        (b) Special Rule for Payment for Fiscal Year 2001.--
    Notwithstanding the amendment made by subsection (a), for
    purposes of making payments for fiscal year 2001 for inpatient
    hospital services furnished by subsection (d) hospitals (as
    defined in section 1886(d)(1)(B) of the Social Security Act (42
    U.S.C. 1395ww(d)(1)(B)), the ``applicable percentage increase''
    referred to in section 1886(b)(3)(B)(i) of such Act (42 U.S.C.
    1395ww(b)(3)(B)(i))--
                (1) for discharges occurring on or after October 1,
            2000, and before April 1, 2001, shall be determined in
            accordance with subclause (XVI) of such section as in
            effect on the day before the date of the enactment of
            this Act; and
                (2) for discharges occurring on or after April 1,
            2001, and before October 1, 2001, shall be equal to--
                        (A) the market basket percentage increase
                    plus 1.1 percentage points for hospitals (other
                    than sole community hospitals) in all areas;
                    and
                        (B) the market basket percentage increase
                    for sole community hospitals.
        (c) Consideration of Price of Blood and Blood Products in
    Market Basket Index.--The Secretary of Health and Human
    Services shall, when next (after the date of the enactment of
    this Act) rebasing and revising the hospital market basket
    index (as defined in section 1886(b)(3)(B)(iii) of the Social
    Security Act (42 U.S.C. 1395ww(b)(3)(B)(iii))), consider the
    prices of blood and blood products purchased by hospitals and
    determine whether those prices are adequately reflected in such
    index.
        (d) MedPAC Study and Report Regarding Certain Hospital
    Costs.--
                (1) Study.--The Medicare Payment Advisory
            Commission shall conduct a study on--
                        (A) any increased costs incurred by
                    subsection (d) hospitals (as defined in
                    paragraph (1)(B) of section 1886(d) of the
                    Social Security Act (42 U.S.C. 1395ww(d))) in
                    providing inpatient hospital services to
                    medicare beneficiaries under title XVIII of
                    such Act during the period beginning on October
                    1, 1983, and ending on September 30, 1999, that
                    were attributable to--
                                (i) complying with new blood safety
                            measure requirements; and
                                (ii) providing such services using
                            new technologies;
                        (B) the extent to which the prospective
                    payment system for such services under such
                    section provides adequate and timely
                    recognition of such increased costs;
                        (C) the prospects for (and to the extent
                    practicable, the magnitude of) cost increases
                    that hospitals will incur in providing such
                    services that are attributable to complying
                    with new blood safety measure requirements and
                    providing such services using new technologies
                    during the 10 years after the date of the
                    enactment of this Act; and
                        (D) the feasibility and advisability of
                    establishing mechanisms under such payment
                    system to provide for more timely and accurate
                    recognition of such cost increases in the
                    future.
                (2) Consultation.--In conducting the study under
            this subsection, the Commission shall consult with
            representatives of the blood community, including--
                        (A) hospitals;
                        (B) organizations involved in the
                    collection, processing, and delivery of blood;
                    and
                        (C) organizations involved in the
                    development of new blood safety technologies.
                (3) Report.--Not later than 1 year after the date
            of the enactment of this Act, the Commission shall
            submit to Congress a report on the study conducted
            under paragraph (1) together with such recommendations
            for legislation and administrative action as the
            Commission determines appropriate.
        (e) Adjustment for Inpatient Case Mix Changes.--
                (1) In general.--Section 1886(d)(3)(A) (42 U.S.C.
            1395ww(d)(3)(A)) is amended by adding at the end the
            following new clause:
                ``(vi) Insofar as the Secretary determines that the
            adjustments under paragraph (4)(C)(i) for a previous
            fiscal year (or estimates that such adjustments for a
            future fiscal year) did (or are likely to) result in a
            change in aggregate payments under this subsection
            during the fiscal year that are a result of changes in
            the coding or classification of discharges that do not
            reflect real changes in case mix, the Secretary may
            adjust the average standardized amounts computed under
            this paragraph for subsequent fiscal years so as to
            eliminate the effect of such coding or classification
            changes.''.
                (2) Effective date.--The amendment made by
            paragraph (1) shall apply to discharges occurring on or
            after October 1, 2001.

    SEC. 302. ADDITIONAL MODIFICATION IN TRANSITION FOR INDIRECT MEDICAL
                        EDUCATION (IME) PERCENTAGE ADJUSTMENT.

        (a) In General.--Section 1886(d)(5)(B)(ii) (42 U.S.C.
    1395ww(d)(5)(B)(ii)) is amended--
                (1) in subclause (V) by striking ``and'' at the
            end;
                (2) by redesignating subclause (VI) as subclause
            (VII);
                (3) in subclause (VII) as so redesignated, by
            striking ``2001'' and inserting ``2002''; and
                (4) by inserting after subclause (V) the following
            new subclause:
                        ``(VI) during fiscal year 2002, `c' is
                    equal to 1.6; and''.
        (b) Special Rule for Payment for Fiscal Year 2001.--
    Notwithstanding paragraph (5)(B)(ii)(V) of section 1886(d) of
    the Social Security Act (42 U.S.C. 1395ww(d)(5)(B)(ii)(V)), for
    purposes of making payments for subsection (d) hospitals (as
    defined in paragraph (1)(B) of such section) with indirect
    costs of medical education, the indirect teaching adjustment
    factor referred to in paragraph (5)(B)(ii) of such section
    shall be determined, for discharges occurring on or after April
    1, 2001, and before October 1, 2001, as if ``c'' in paragraph
    (5)(B)(ii)(V) of such section equalled 1.66 rather than 1.54.
        (c) Conforming Amendment Relating to Determination of
    Standardized Amount.--Section 1886(d)(2)(C)(i) (42 U.S.C.
    1395ww(d)(2)(C)(i)) is amended by inserting ``or of section 302
    of the Medicare, Medicaid, and SCHIP Benefits Improvement and
    Protection Act of 2000'' after ``Balanced Budget Refinement Act
    of 1999''.
        (d) Clerical Amendments.--Section 1886(d)(5)(B) (42 U.S.C.
    1395ww(d)(5)(B)), as amended by subsection (a), is further
    amended by moving the indentation of each of the following 2
    ems to the left:
                (1) Clauses (ii), (v), and (vi).
                (2) Subclauses (I) (II), (III), (IV), (V), and
            (VII) of clause (ii).
                (3) Subclauses (I) and (II) of clause (vi) and the
            flush sentence at the end of such clause.

    SEC. 303. DECREASE IN REDUCTIONS FOR DISPROPORTIONATE SHARE HOSPITAL
                        (DSH) PAYMENTS.

        (a) In General.--Section 1886(d)(5)(F)(ix) (42 U.S.C.
    1395ww(d)(5)(F)(ix)) is amended--
                (1) in subclause (III), by striking ``each of'' and
            by inserting ``and 2 percent, respectively'' after ``3
            percent''; and
                (2) in subclause (IV), by striking ``4 percent''
            and inserting ``3 percent''.
        (b) Special Rule for Payment for Fiscal Year 2001.--
    Notwithstanding the amendment made by subsection (a)(1), for
    purposes of making disproportionate share payments for
    subsection (d) hospitals (as defined in section 1886(d)(1)(B)
    of the Social Security Act (42 U.S.C. 1395ww(d)(1)(B)) for
    fiscal year 2001, the additional payment amount otherwise
    determined under clause (ii) of section 1886(d)(5)(F) of the
    Social Security Act (42 U.S.C. 1395ww(d)(5)(F))--
                (1) for discharges occurring on or after October 1,
            2000, and before April 1, 2001, shall be adjusted as
            provided by clause (ix)(III) of such section as in
            effect on the day before the date of the enactment of
            this Act; and
                (2) for discharges occurring on or after April 1,
            2001, and before October 1, 2001, shall, instead of
            being reduced by 3 percent as provided by clause
            (ix)(III) of such section as in effect after the date
            of the enactment of this Act, be reduced by 1 percent.
        (c) Conforming Amendments Relating to Determination of
    Standardized Amount.--Section 1886(d)(2)(C)(iv) (42 U.S.C.
    1395ww(d)(2)(C)(iv)), is amended--
                (1) by striking ``1989 or'' and inserting
            ``1989,''; and
                (2) by inserting ``, or the enactment of section
            303 of the Medicare, Medicaid, and SCHIP Benefits
            Improvement and Protection Act of 2000'' after
            ``Omnibus Budget Reconciliation Act of 1990''.
        (d) Technical Amendment.--
                (1) In general.--Section 1886(d)(5)(F)(i) (42
            U.S.C. 1395ww(d)(5)(F)(i)) is amended by striking ``and
            before October 1, 1997,''.
                (2) Effective date.--The amendment made by
            paragraph (1) is effective as if included in the
            enactment of BBA.
        (e) Reference to Changes in DSH for Rural Hospitals.--For
    additional changes in the DSH program for rural hospitals, see
    section 211.

    SEC. 304. WAGE INDEX IMPROVEMENTS.

        (a) Duration of Wage Index Reclassification; Use of 3-Year
    Wage Data.--Section 1886(d)(10)(D) (42 U.S.C. 1395ww(d)(10)(D))
    is amended by adding at the end the following new clauses:
        ``(v) Any decision of the Board to reclassify a subsection
    (d) hospital for purposes of the adjustment factor described in
    subparagraph (C)(i)(II) for fiscal year 2001 or any fiscal year
    thereafter shall be effective for a period of 3 fiscal years,
    except that the Secretary shall establish procedures under
    which a subsection (d) hospital may elect to terminate such
    reclassification before the end of such period.
        ``(vi) Such guidelines shall provide that, in making
    decisions on applications for reclassification for the purposes
    described in clause (v) for fiscal year 2003 and any succeeding
    fiscal year, the Board shall base any comparison of the average
    hourly wage for the hospital with the average hourly wage for
    hospitals in an area on--
                ``(I) an average of the average hourly wage amount
            for the hospital from the most recently published
            hospital wage survey data of the Secretary (as of the
            date on which the hospital applies for
            reclassification) and such amount from each of the two
            immediately preceding surveys; and
                ``(II) an average of the average hourly wage amount
            for hospitals in such area from the most recently
            published hospital wage survey data of the Secretary
            (as of the date on which the hospital applies for
            reclassification) and such amount from each of the two
            immediately preceding surveys.''.
        (b) Process To Permit Statewide Wage Index Calculation and
    Application.--
                (1) In general.--The Secretary of Health and Human
            Services shall establish a process (based on the
            voluntary process utilized by the Secretary of Health
            and Human Services under section 1848 of the Social
            Security Act (42 U.S.C. 1395w-4) for purposes of
            computing and applying a statewide geographic
            adjustment factor) under which an appropriate statewide
            entity may apply to have all the geographic areas in a
            State treated as a single geographic area for purposes
            of computing and applying the area wage index under
            section 1886(d)(3)(E) of such Act (42 U.S.C.
            1395ww(d)(3)(E)). Such process shall be established by
            October 1, 2001, for reclassifications beginning in
            fiscal year 2003.
                (2) Prohibition on individual hospital
            reclassification.--Notwithstanding any other provision
            of law, if the Secretary applies a statewide geographic
            wage index under paragraph (1) with respect to a State,
            any application submitted by a hospital in that State
            under section 1886(d)(10) of the Social Security Act
            (42 U.S.C. 1395ww(d)(10)) for geographic
            reclassification shall not be considered.
        (c) Collection of Information on Occupational Mix.--
                (1) In general.--The Secretary of Health and Human
            Services shall provide for the collection of data every
            3 years on occupational mix for employees of each
            subsection (d) hospital (as defined in section
            1886(d)(1)(D) of the Social Security Act (42 U.S.C.
            1395ww(d)(1)(D))) in the provision of inpatient
            hospital services, in order to construct an
            occupational mix adjustment in the hospital area wage
            index applied under section 1886(d)(3)(E) of such Act
            (42 U.S.C. 1395ww(d)(3)(E)).
                (2) Application.--The third sentence of section
            1886(d)(3)(E) (42 U.S.C. 1395ww(d)(3)(E)) is amended by
            striking ``To the extent determined feasible by the
            Secretary, such survey shall measure'' and inserting
            ``Not less often than once every 3 years the Secretary
            (through such survey or otherwise) shall measure''.
                (3) Effective date.--By not later than September
            30, 2003, for application beginning October 1, 2004,
            the Secretary shall first complete--
                        (A) the collection of data under paragraph
                    (1); and
                        (B) the measurement under the third
                    sentence of section 1886(d)(3)(E), as amended
                    by paragraph (2).

    SEC. 305. PAYMENT FOR INPATIENT SERVICES OF REHABILITATION HOSPITALS.

        (a) Assistance With Administrative Costs Associated With
    Completion of Patient Assessment.--Section 1886(j)(3)(B) (42
    U.S.C. 1395ww(j)(3)(B)) is amended by striking ``98 percent''
    and inserting ``98 percent for fiscal year 2001 and 100 percent
    for fiscal year 2002''.
        (b) Election To Apply Full Prospective Payment Rate Without
    Phase-in.--
                (1) In general.--Paragraph (1) of section 1886(j)
            (42 U.S.C. 1395ww(j)) is amended--
                        (A) in subparagraph (A), by inserting
                    ``other than a facility making an election
                    under subparagraph (F)'' before ``in a cost
                    reporting period'';
                        (B) in subparagraph (B), by inserting ``or,
                    in the case of a facility making an election
                    under subparagraph (F), for any cost reporting
                    period described in such subparagraph,'' after
                    ``2002,''; and
                        (C) by adding at the end the following new
                    subparagraph:
                        ``(F) Election to apply full prospective
                    payment system.--A rehabilitation facility may
                    elect, not later than 30 days before its first
                    cost reporting period for which the payment
                    methodology under this subsection applies to
                    the facility, to have payment made to the
                    facility under this subsection under the
                    provisions of subparagraph (B) (rather than
                    subparagraph (A)) for each cost reporting
                    period to which such payment methodology
                    applies.''.
                (2) Clarification.--Paragraph (3)(B) of such
            section is amended by inserting ``but not taking into
            account any payment adjustment resulting from an
            election permitted under paragraph (1)(F)'' after
            ``paragraphs (4) and (6)''.
        (c) Effective Date.--The amendments made by this section
    take effect as if included in the enactment of BBA.

    SEC. 306. PAYMENT FOR INPATIENT SERVICES OF PSYCHIATRIC HOSPITALS.

        With respect to hospitals described in clause (i) of
    section 1886(d)(1)(B) of the Social Security Act (42 U.S.C.
    1395ww(d)(1)(B)) and psychiatric units described in the matter
    following clause (v) of such section, in making incentive
    payments to such hospitals under section 1886(b)(1)(A) of such
    Act (42 U.S.C. 1395ww(b)(1)(A)) for cost reporting periods
    beginning on or after October 1, 2000, and before October 1,
    2001, the Secretary of Health and Human Services, in clause
    (ii) of such section, shall substitute ``3 percent'' for ``2
    percent''.

    SEC. 307. PAYMENT FOR INPATIENT SERVICES OF LONG-TERM CARE HOSPITALS.

        (a) Increased Target Amounts and Caps for Long-Term Care
    Hospitals Before Implementation of the Prospective Payment
    System.--
                (1) In general.--Section 1886(b)(3) (42 U.S.C.
            1395ww(b)(3)) is amended--
                        (A) in subparagraph (H)(ii)(III), by
                    inserting ``subject to subparagraph (J),''
                    after ``2002,''; and
                        (B) by adding at the end the following new
                    subparagraph:
        ``(J) For cost reporting periods beginning during fiscal
    year 2001, for a hospital described in subsection
    (d)(1)(B)(iv)--
                ``(i) the limiting or cap amount otherwise
            determined under subparagraph (H) shall be increased by
            2 percent; and
                ``(ii) the target amount otherwise determined under
            subparagraph (A) shall be increased by 25 percent
            (subject to the limiting or cap amount determined under
            subparagraph (H), as increased by clause (i)).''.
                (2) Application.--The amendments made by subsection
            (a) and by section 122 of BBRA (113 Stat. 1501A-331)
            shall not be taken into account in the development and
            implementation of the prospective payment system under
            section 123 of BBRA (113 Stat. 1501A-331).
        (b) Implementation of Prospective Payment System for Long-
    Term Care Hospitals.--
                (1) Modification of requirement.--In developing the
            prospective payment system for payment for inpatient
            hospital services provided in long-term care hospitals
            described in section 1886(d)(1)(B)(iv) of the Social
            Security Act (42 U.S.C. 1395ww(d)(1)(B)(iv)) under the
            medicare program under title XVIII of such Act required
            under section 123 of BBRA, the Secretary of Health and
            Human Services shall examine the feasibility and the
            impact of basing payment under such a system on the use
            of existing (or refined) hospital diagnosis-related
            groups (DRGs) that have been modified to account for
            different resource use of long-term care hospital
            patients as well as the use of the most recently
            available hospital discharge data. The Secretary shall
            examine and may provide for appropriate adjustments to
            the long-term hospital payment system, including
            adjustments to DRG weights, area wage adjustments,
            geographic reclassification, outliers, updates, and a
            disproportionate share adjustment consistent with
            section 1886(d)(5)(F) of the Social Security Act (42
            U.S.C. 1395ww(d)(5)(F)).
                (2) Default implementation of system based on
            existing drg methodology.--If the Secretary is unable
            to implement the prospective payment system under
            section 123 of the BBRA by October 1, 2002, the
            Secretary shall implement a prospective payment system
            for such hospitals that bases payment under such a
            system using existing hospital diagnosis-related groups
            (DRGs), modified where feasible to account for resource
            use of long-term care hospital patients using the most
            recently available hospital discharge data for such
            services furnished on or after that date.

     Subtitle B--Adjustments to PPS Payments for Skilled Nursing Facilities

    SEC. 311. ELIMINATION OF REDUCTION IN SKILLED NURSING FACILITY (SNF)
                        MARKET BASKET UPDATE IN 2001.

        (a) In General.--Section 1888(e)(4)(E)(ii) (42 U.S.C.
    1395yy(e)(4)(E)(ii)) is amended--
                (1) by redesignating subclauses (II) and (III) as
            subclauses (III) and (IV), respectively;
                (2) in subclause (III), as so redesignated--
                        (A) by striking ``each of fiscal years 2001
                    and 2002'' and inserting ``each of fiscal years
                    2002 and 2003''; and
                        (B) by striking ``minus 1 percentage
                    point'' and inserting ``minus 0.5 percentage
                    points''; and
                (3) by inserting after subclause (I) the following
            new subclause:
                                        ``(II) for fiscal year
                                    2001, the rate computed for the
                                    previous fiscal year increased
                                    by the skilled nursing facility
                                    market basket percentage change
                                    for the fiscal year;''.
        (b) Special Rule for Payment for Fiscal Year 2001.--
    Notwithstanding the amendments made by subsection (a), for
    purposes of making payments for covered skilled nursing
    facility services under section 1888(e) of the Social Security
    Act (42 U.S.C. 1395yy(e)) for fiscal year 2001, the Federal per
    diem rate referred to in paragraph (4)(E)(ii) of such section--
                (1) for the period beginning on October 1, 2000,
            and ending on March 31, 2001, shall be the rate
            determined in accordance with the law as in effect on
            the day before the date of the enactment of this Act;
            and
                (2) for the period beginning on April 1, 2001, and
            ending on September 30, 2001, shall be the rate that
            would have been determined under such section if ``plus
            1 percentage point'' had been substituted for ``minus 1
            percentage point'' under subclause (II) of such
            paragraph (as in effect on the day before the date of
            the enactment of this Act).
        (c) Relation to Temporary Increase in BBRA.--The increases
    provided under section 101 of BBRA (113 Stat. 1501A-325) shall
    be in addition to any increase resulting from the amendments
    made by subsection (a).
        (d) GAO Report on Adequacy of SNF Payment Rates.--Not later
    than July 1, 2002, the Comptroller General of the United States
    shall submit to Congress a report on the adequacy of medicare
    payment rates to skilled nursing facilities and the extent to
    which medicare contributes to the financial viability of such
    facilities. Such report shall take into account the role of
    private payors, medicaid, and case mix on the financial
    performance of these facilities, and shall include an analysis
    (by specific RUG classification) of the number and
    characteristics of such facilities.
        (e) HCFA Study of Classification Systems for SNF
    Residents.--
                (1) Study.--The Secretary of Health and Human
            Services shall conduct a study of the different systems
            for categorizing patients in medicare skilled nursing
            facilities in a manner that accounts for the relative
            resource utilization of different patient types.
                (2) Report.--Not later than January 1, 2005, the
            Secretary shall submit to Congress a report on the
            study conducted under subsection (a). Such report shall
            include such recommendations regarding changes in law
            as may be appropriate.

    SEC. 312. INCREASE IN NURSING COMPONENT OF PPS FEDERAL RATE.

        (a) In General.--The Secretary of Health and Human Services
    shall increase by 16.66 percent the nursing component of the
    case-mix adjusted Federal prospective payment rate specified in
    Tables 3 and 4 of the final rule published in the Federal
    Register by the Health Care Financing Administration on July
    31, 2000 (65 Fed. Reg. 46770) and as subsequently updated,
    effective for services furnished on or after April 1, 2001, and
    before October 1, 2002.
        (b) GAO Audit of Nursing Staff Ratios.--
                (1) Audit.--The Comptroller General of the United
            States shall conduct an audit of nursing staffing
            ratios in a representative sample of medicare skilled
            nursing facilities. Such sample shall cover selected
            States and shall include broad representation with
            respect to size, ownership, location, and medicare
            volume. Such audit shall include an examination of
            payroll records and medicaid cost reports of individual
            facilities.
                (2) Report.--Not later than August 1, 2002, the
            Comptroller General shall submit to Congress a report
            on the audits conducted under paragraph (1). Such
            report shall include an assessment of the impact of the
            increased payments under this subtitle on increased
            nursing staff ratios and shall make recommendations as
            to whether increased payments under subsection (a)
            should be continued.

    SEC. 313. APPLICATION OF SNF CONSOLIDATED BILLING REQUIREMENT LIMITED
                        TO PART A COVERED STAYS.

        (a) In General.--Section 1862(a)(18) (42 U.S.C.
    1395y(a)(18)) is amended by striking ``or of a part of a
    facility that includes a skilled nursing facility (as
    determined under regulations),'' and inserting ``during a
    period in which the resident is provided covered post-hospital
    extended care services (or, for services described in section
    1861(s)(2)(D), which are furnished to such an individual
    without regard to such period),''.
        (b) Conforming Amendments.--(1) Section 1842(b)(6)(E) (42
    U.S.C. 1395u(b)(6)(E)) is amended--
                (A) by inserting ``by, or under arrangements made
            by, a skilled nursing facility'' after ``furnished'';
                (B) by striking ``or of a part of a facility that
            includes a skilled nursing facility (as determined
            under regulations)''; and
                (C) by striking ``(without regard to whether or not
            the item or service was furnished by the facility, by
            others under arrangement with them made by the
            facility, under any other contracting or consulting
            arrangement, or otherwise)''.
        (2) Section 1842(t) (42 U.S.C. 1395u(t)) is amended by
    striking ``by a physician'' and ``or of a part of a facility
    that includes a skilled nursing facility (as determined under
    regulations),''.
        (3) Section 1866(a)(1)(H)(ii)(I) (42 U.S.C.
    1395cc(a)(1)(H)(ii)(I)) is amended by inserting after ``who is
    a resident of the skilled nursing facility'' the following:
    ``during a period in which the resident is provided covered
    post-hospital extended care services (or, for services
    described in section 1861(s)(2)(D), that are furnished to such
    an individual without regard to such period)''.
        (c) Effective Date.--The amendments made by subsections (a)
    and (b) shall apply to services furnished on or after January
    1, 2001.
        (d) Oversight.--The Secretary of Health and Human Services,
    through the Office of the Inspector General in the Department
    of Health and Human Services or otherwise, shall monitor
    payments made under part B of the title XVIII of the Social
    Security Act for items and services furnished to residents of
    skilled nursing facilities during a time in which the residents
    are not being provided medicare covered post-hospital extended
    care services to ensure that there is not duplicate billing for
    services or excessive services provided.

    SEC. 314. ADJUSTMENT OF REHABILITATION RUGS TO CORRECT ANOMALY IN
                        PAYMENT RATES.

        (a) Adjustment for Rehabilitation RUGs.--
                (1) In general.--For purposes of computing payments
            for covered skilled nursing facility services under
            paragraph (1) of section 1888(e) of the Social Security
            Act (42 U.S.C. 1395yy(e)) for such services furnished
            on or after April 1, 2001, and before the date
            described in section 101(c)(2) of BBRA (113 Stat.
            1501A-324), the Secretary of Health and Human Services
            shall increase by 6.7 percent the adjusted Federal per
            diem rate otherwise determined under paragraph (4) of
            such section (but for this section) for covered skilled
            nursing facility services for RUG-III rehabilitation
            groups described in paragraph (2) furnished to an
            individual during the period in which such individual
            is classified in such a RUG-III category.
                (2) Rehabilitation groups described.--The RUG-III
            rehabilitation groups for which the adjustment
            described in paragraph (1) applies are RUC, RUB, RUA,
            RVC, RVB, RVA, RHC, RHB, RHA, RMC, RMB, RMA, RLB, and
            RLA, as specified in Tables 3 and 4 of the final rule
            published in the Federal Register by the Health Care
            Financing Administration on July 31, 2000 (65 Fed. Reg.
            46770).
        (b) Correction With Respect to Rehabilitation RUGs.--
                (1) In general.--Section 101(b) of BBRA (113 Stat.
            1501A-324) is amended by striking ``CA1, RHC, RMC, and
            RMB'' and inserting ``and CA1''.
                (2) Effective date.--The amendment made by
            paragraph (1) shall apply to services furnished on or
            after April 1, 2001.
        (c) Review by Office of Inspector General.--The Inspector
    General of the Department of Health and Human Services shall
    review the medicare payment structure for services classified
    within rehabilitation resource utilization groups (RUGs) (as in
    effect after the date of the enactment of the BBRA) to assess
    whether payment incentives exist for the delivery of inadequate
    care. Not later than October 1, 2001, the Inspector General
    shall submit to Congress a report on such review.

    SEC. 315. ESTABLISHMENT OF PROCESS FOR GEOGRAPHIC RECLASSIFICATION.

        (a) In General.--The Secretary of Health and Human Services
    may establish a procedure for the geographic reclassification
    of a skilled nursing facility for purposes of payment for
    covered skilled nursing facility services under the prospective
    payment system established under section 1888(e) of the Social
    Security Act (42 U.S.C. 1395yy(e)). Such procedure may be based
    upon the method for geographic reclassifications for inpatient
    hospitals established under section 1886(d)(10) of the Social
    Security Act (42 U.S.C. 1395ww(d)(10)).
        (b) Requirement for Skilled Nursing Facility Wage Data.--In
    no case may the Secretary implement the procedure under
    subsection (a) before such time as the Secretary has collected
    data necessary to establish an area wage index for skilled
    nursing facilities based on wage data from such facilities.

                            Subtitle C--Hospice Care

    SEC. 321. 5 PERCENT INCREASE IN PAYMENT BASE.

        (a) In General.--Section 1814(i)(1)(C)(ii)(VI) (42 U.S.C.
    1395f(i)(1)(C)(ii)(VI)) is amended by inserting ``, plus, in
    the case of fiscal year 2001, 5.0 percentage points'' before
    the semicolon at the end.
        (b) Effective Date.--The amendment made by subsection (a)
    shall apply to hospice care furnished on or after April 1,
    2001. In applying clause (ii) of section 1814(i)(1)(C) of the
    Social Security Act (42 U.S.C. 1395f(i)(1)(C)) beginning with
    fiscal year 2002, the payment rates in effect under such
    section during the period beginning on April 1, 2001, and
    ending on September 30, shall be treated as the payment rates
    in effect during fiscal year 2001.
        (c) No Effect on BBRA Temporary Increase.--The provisions
    of this section shall have no effect on the application of
    section 131 of BBRA.
        (d) Application of Wage Index.--Notwithstanding section
    1814(i) of the Social Security Act (42 U.S.C. 1395f(i)), the
    Secretary of Health and Human Services shall use 1.0043 as the
    hospice wage index value for the Wichita, Kansas Metropolitan
    Statistical Area in calculating payments under such section for
    a hospice program providing hospice care in such area during
    fiscal year 2000. The Secretary may provide for an appropriate
    timely lump sum payment to reflect the application of the
    previous sentence.
        (e) Technical Amendment.--Section 1814(a)(7)(A)(ii) (42
    U.S.C. 1395f(a)(7)(A)(ii)) is amended by striking the period at
    the end and inserting a semicolon.

    SEC. 322. CLARIFICATION OF PHYSICIAN CERTIFICATION.

        (a) Certification Based on Normal Course of Illness.--
                (1) In general.--Section 1814(a) (42 U.S.C.
            1395f(a)) is amended by adding at the end the following
            new sentence: ``The certification regarding terminal
            illness of an individual under paragraph (7) shall be
            based on the physician's or medical director's clinical
            judgment regarding the normal course of the
            individual's illness.''.
                (2) Effective date.--The amendment made by
            paragraph (1) shall apply to certifications made on or
            after the date of the enactment of this Act.
        (b) Study and Report on Physician Certification Requirement
    for Hospice Benefits.--
                (1) Study.--The Secretary of Health and Human
            Services shall conduct a study to examine the
            appropriateness of the certification regarding terminal
            illness of an individual under section 1814(a)(7) of
            the Social Security Act (42 U.S.C. 1395f(a)(7)) that is
            required in order for such individual to receive
            hospice benefits under the medicare program under title
            XVIII of such Act. In conducting such study, the
            Secretary shall take into account the effect of the
            amendment made by subsection (a).
                (2) Report.--Not later than 2 years after the date
            of the enactment of this Act, the Secretary of Health
            and Human Services shall submit to Congress a report on
            the study conducted under paragraph (1), together with
            any recommendations for legislation that the Secretary
            deems appropriate.

    SEC. 323. MEDPAC REPORT ON ACCESS TO, AND USE OF, HOSPICE BENEFIT.

        (a) In General.--The Medicare Payment Advisory Commission
    shall conduct a study to examine the factors affecting the use
    of hospice benefits under the medicare program under title
    XVIII of the Social Security Act, including a delay in the time
    (relative to death) of entry into a hospice program, and
    differences in such use between urban and rural hospice
    programs and based upon the presenting condition of the
    patient.
        (b) Report.--Not later than 18 months after the date of the
    enactment of this Act, the Commission shall submit to Congress
    a report on the study conducted under subsection (a), together
    with any recommendations for legislation that the Commission
    deems appropriate.

                          Subtitle D--Other Provisions

    SEC. 331. RELIEF FROM MEDICARE PART A LATE ENROLLMENT PENALTY FOR GROUP
                        BUY-IN FOR STATE AND LOCAL RETIREES.

        (a) In General.--Section 1818 (42 U.S.C. 1395i-2) is
    amended--
                (1) in subsection (c)(6), by inserting before the
            semicolon at the end the following: ``and shall be
            subject to reduction in accordance with subsection
            (d)(6)''; and
                (2) by adding at the end of subsection (d) the
            following new paragraph:
        ``(6)(A) In the case where a State, a political subdivision
    of a State, or an agency or instrumentality of a State or
    political subdivision thereof determines to pay, for the life
    of each individual, the monthly premiums due under paragraph
    (1) on behalf of each of the individuals in a qualified State
    or local government retiree group who meets the conditions of
    subsection (a), the amount of any increase otherwise applicable
    under section 1839(b) (as applied and modified by subsection
    (c)(6) of this section) with respect to the monthly premium for
    benefits under this part for an individual who is a member of
    such group shall be reduced by the total amount of taxes paid
    under section 3101(b) of the Internal Revenue Code of 1986 by
    such individual and under section 3111(b) by the employers of
    such individual on behalf of such individual with respect to
    employment (as defined in section 3121(b) of such Code).
        ``(B) For purposes of this paragraph, the term `qualified
    State or local government retiree group' means all of the
    individuals who retire prior to a specified date that is before
    January 1, 2002, from employment in 1 or more occupations or
    other broad classes of employees of--
                ``(i) the State;
                ``(ii) a political subdivision of the State; or
                ``(iii) an agency or instrumentality of the State
            or political subdivision of the State.''.
        (b) Effective Date.--The amendments made by subsection (a)
    shall apply to premiums for months beginning with January 1,
    2002.

                    TITLE IV--PROVISIONS RELATING TO PART B

                    Subtitle A--Hospital Outpatient Services

    SEC. 401. REVISION OF HOSPITAL OUTPATIENT PPS PAYMENT UPDATE.

        (a) In General.--Section 1833(t)(3)(C)(iii) (42 U.S.C.
    1395l(t)(3)(C)(iii)) is amended by striking ``in each of 2000,
    2001, and 2002'' and inserting ``in each of 2000 and 2002''.
        (b) Adjustment for Case Mix Changes.--
                (1) In general.--Section 1833(t)(3)(C) (42 U.S.C.
            1395l(t)(3)(C)) is amended--
                        (A) by redesignating clause (iii) as clause
                    (iv); and
                        (B) by inserting after clause (ii) the
                    following new clause:
                                ``(iii) Adjustment for service mix
                            changes.--Insofar as the Secretary
                            determines that the adjustments for
                            service mix under paragraph (2) for a
                            previous year (or estimates that such
                            adjustments for a future year) did (or
                            are likely to) result in a change in
                            aggregate payments under this
                            subsection during the year that are a
                            result of changes in the coding or
                            classification of covered OPD services
                            that do not reflect real changes in
                            service mix, the Secretary may adjust
                            the conversion factor computed under
                            this subparagraph for subsequent years
                            so as to eliminate the effect of such
                            coding or classification changes.''.
                (2) Effective date.--The amendments made by
            paragraph (1) shall take effect as if included in the
            enactment of BBA.
        (c) Special Rule for Payment for 2001.--Notwithstanding the
    amendment made by subsection (a), for purposes of making
    payments under section 1833(t) of the Social Security Act (42
    U.S.C. 1395l(t)) for covered OPD services furnished during
    2001, the medicare OPD fee schedule amount under such section--
                (1) for services furnished on or after January 1,
            2001, and before April 1, 2001, shall be the medicare
            OPD fee schedule amount for 2001 as determined under
            the provisions of law in effect on the day before the
            date of the enactment of this Act; and
                (2) for services furnished on or after April 1,
            2001, and before January 1, 2002, shall be the fee
            schedule amount (as determined taking into account the
            amendment made by subsection (a)), increased by a
            transitional percentage allowance equal to 0.32 percent
            (to account for the timing of implementation of the
            full market basket update).

    SEC. 402. CLARIFYING PROCESS AND STANDARDS FOR DETERMINING ELIGIBILITY
                        OF DEVICES FOR PASS-THROUGH PAYMENTS UNDER HOSPITAL
                        OUTPATIENT PPS.

        (a) In General.--Section 1833(t)(6) (42 U.S.C. 1395l(t)(6))
    is amended--
                (1) by redesignating subparagraphs (C) and (D) as
            subparagraphs (D) and (E), respectively; and
                (2) by striking subparagraph (B) and inserting the
            following new subparagraphs:
                        ``(B) Use of categories in determining
                    eligibility of a device for pass-through
                    payments.--The following provisions apply for
                    purposes of determining whether a medical
                    device qualifies for additional payments under
                    clause (ii) or (iv) of subparagraph (A):
                                ``(i) Establishment of initial
                            categories.--
                                        ``(I) In general.--The
                                    Secretary shall initially
                                    establish under this clause
                                    categories of medical devices
                                    based on type of device by
                                    April 1, 2001. Such categories
                                    shall be established in a
                                    manner such that each medical
                                    device that meets the
                                    requirements of clause (ii) or
                                    (iv) of subparagraph (A) as of
                                    January 1, 2001, is included in
                                    such a category and no such
                                    device is included in more than
                                    one category. For purposes of
                                    the preceding sentence, whether
                                    a medical device meets such
                                    requirements as of such date
                                    shall be determined on the
                                    basis of the program memoranda
                                    issued before such date.
                                        ``(II) Authorization of
                                    implementation other than
                                    through regulations.--The
                                    categories may be established
                                    under this clause by program
                                    memorandum or otherwise, after
                                    consultation with groups
                                    representing hospitals,
                                    manufacturers of medical
                                    devices, and other affected
                                    parties.
                                ``(ii) Establishing criteria for
                            additional categories.--
                                        ``(I) In general.--The
                                    Secretary shall establish
                                    criteria that will be used for
                                    creation of additional
                                    categories (other than those
                                    established under clause (i))
                                    through rulemaking (which may
                                    include use of an interim final
                                    rule with comment period).
                                        ``(II) Standard.--Such
                                    categories shall be established
                                    under this clause in a manner
                                    such that no medical device is
                                    described by more than one
                                    category. Such criteria shall
                                    include a test of whether the
                                    average cost of devices that
                                    would be included in a category
                                    and are in use at the time the
                                    category is established is not
                                    insignificant, as described in
                                    subparagraph (A)(iv)(II).
                                        ``(III) Deadline.--Criteria
                                    shall first be established
                                    under this clause by July 1,
                                    2001. The Secretary may
                                    establish in compelling
                                    circumstances categories under
                                    this clause before the date
                                    such criteria are established.
                                        ``(IV) Adding categories.--
                                    The Secretary shall promptly
                                    establish a new category of
                                    medical devices under this
                                    clause for any medical device
                                    that meets the requirements of
                                    subparagraph (A)(iv) and for
                                    which none of the categories in
                                    effect (or that were previously
                                    in effect) is appropriate.
                                ``(iii) Period for which category
                            is in effect.--A category of medical
                            devices established under clause (i) or
                            (ii) shall be in effect for a period of
                            at least 2 years, but not more than 3
                            years, that begins--
                                        ``(I) in the case of a
                                    category established under
                                    clause (i), on the first date
                                    on which payment was made under
                                    this paragraph for any device
                                    described by such category
                                    (including payments made during
                                    the period before April 1,
                                    2001); and
                                        ``(II) in the case of any
                                    other category, on the first
                                    date on which payment is made
                                    under this paragraph for any
                                    medical device that is
                                    described by such category.
                                ``(iv) Requirements treated as
                            met.--A medical device shall be treated
                            as meeting the requirements of
                            subparagraph (A)(iv), regardless of
                            whether the device meets the
                            requirement of subclause (I) of such
                            subparagraph, if--
                                        ``(I) the device is
                                    described by a category
                                    established and in effect under
                                    clause (i); or
                                        ``(II) the device is
                                    described by a category
                                    established and in effect under
                                    clause (ii) and an application
                                    under section 515 of the
                                    Federal Food, Drug, and
                                    Cosmetic Act has been approved
                                    with respect to the device, or
                                    the device has been cleared for
                                    market under section 510(k) of
                                    such Act, or the device is
                                    exempt from the requirements of
                                    section 510(k) of such Act
                                    pursuant to subsection (l) or
                                    (m) of section 510 of such Act
                                    or section 520(g) of such Act.
                            Nothing in this clause shall be
                            construed as requiring an application
                            or prior approval (other than that
                            described in subclause (II)) in order
                            for a covered device described by a
                            category to qualify for payment under
                            this paragraph.
                        ``(C) Limited period of payment.--
                                ``(i) Drugs and biologicals.--The
                            payment under this paragraph with
                            respect to a drug or biological shall
                            only apply during a period of at least
                            2 years, but not more than 3 years,
                            that begins--
                                        ``(I) on the first date
                                    this subsection is implemented
                                    in the case of a drug or
                                    biological described in clause
                                    (i), (ii), or (iii) of
                                    subparagraph (A) and in the
                                    case of a drug or biological
                                    described in subparagraph
                                    (A)(iv) and for which payment
                                    under this part is made as an
                                    outpatient hospital service
                                    before such first date; or
                                        ``(II) in the case of a
                                    drug or biological described in
                                    subparagraph (A)(iv) not
                                    described in subclause (I), on
                                    the first date on which payment
                                    is made under this part for the
                                    drug or biological as an
                                    outpatient hospital service.
                                ``(ii) Medical devices.--Payment
                            shall be made under this paragraph with
                            respect to a medical device only if
                            such device--
                                        ``(I) is described by a
                                    category of medical devices
                                    established and in effect under
                                    subparagraph (B); and
                                        ``(II) is provided as part
                                    of a service (or group of
                                    services) paid for under this
                                    subsection and provided during
                                    the period for which such
                                    category is in effect under
                                    such subparagraph.''.
        (b) Conforming Amendments.--Section 1833(t) (42 U.S.C.
    1395l(t)) is further amended--
                (1) in paragraph (6)(A)(iv)(II), by striking ``the
            cost of the device, drug, or biological'' and inserting
            ``the cost of the drug or biological or the average
            cost of the category of devices'';
                (2) in paragraph (6)(D) (as redesignated by
            subsection (a)(1)), by striking ``subparagraph
            (D)(iii)'' in the matter preceding clause (i) and
            inserting ``subparagraph (E)(iii)''; and
                (3) in paragraph (12)(E), by striking ``additional
            payments (consistent with paragraph (6)(B))'' and
            inserting ``additional payments, the determination and
            deletion of initial and new categories (consistent with
            subparagraphs (B) and (C) of paragraph (6))''.
        (c) Effective Date.--The amendments made by this section
    take effect on the date of the enactment of this Act.
        (d) Transition.--
                (1) In general.--In the case of a medical device
            provided as part of a service (or group of services)
            furnished during the period before initial categories
            are implemented under subparagraph (B)(i) of section
            1833(t)(6) of the Social Security Act (as amended by
            subsection (a)), payment shall be made for such device
            under such section in accordance with the provisions in
            effect before the date of the enactment of this Act. In
            addition, beginning on the date that is 30 days after
            the date of the enactment of this Act, payment shall be
            made for such a device that is not included in a
            program memorandum described in such subparagraph if
            the Secretary of Health and Human Services determines
            that the device (including a device that would have
            been included in such program memoranda but for the
            requirement of subparagraph (A)(iv)(I) of that section)
            is likely to be described by such an initial category.
                (2) Application of current process.--
            Notwithstanding any other provision of law, the
            Secretary shall continue to accept applications with
            respect to medical devices under the process
            established pursuant to paragraph (6) of section
            1833(t) of the Social Security Act (as in effect on the
            day before the date of the enactment of this Act)
            through December 1, 2000, and any device--
                        (A) with respect to which an application
                    was submitted (pursuant to such process) on or
                    before such date; and
                        (B) that meets the requirements of clause
                    (ii) or (iv) of subparagraph (A) of such
                    paragraph (as determined pursuant to such
                    process),
            shall be treated as a device with respect to which an
            initial category is required to be established under
            subparagraph (B)(i) of such paragraph (as amended by
            subsection (a)(2)).

    SEC. 403. APPLICATION OF OPD PPS TRANSITIONAL CORRIDOR PAYMENTS TO
                        CERTAIN HOSPITALS THAT DID NOT SUBMIT A 1996 COST
                        REPORT.

        (a) In General.--Section 1833(t)(7)(F)(ii)(I) (42 U.S.C.
    1395l(t)(7)(F)(ii)(I)) is amended by inserting ``(or in the
    case of a hospital that did not submit a cost report for such
    period, during the first subsequent cost reporting period
    ending before 2001 for which the hospital submitted a cost
    report)'' after ``1996''.
        (b) Effective Date.--The amendment made by subsection (a)
    shall take effect as if included in the enactment of BBRA.

    SEC. 404. APPLICATION OF RULES FOR DETERMINING PROVIDER-BASED STATUS
                        FOR CERTAIN ENTITIES.

        (a) Grandfather.--Notwithstanding any other provision of
    law, effective October 1, 2000, for purposes of provider-based
    status under title XVIII of the Social Security Act--
                (1) any facility or organization that is treated as
            provider-based in relation to a hospital or critical
            access hospital under such title as of such date shall
            continue to be treated as provider-based in relation to
            such hospital or critical access hospital under such
            title until October 1, 2002; and
                (2) the requirements, limitations, and exclusions
            specified in subsections (d), (e), (f), and (h) of
            section 413.65 of title 42, Code of Federal
            Regulations, shall not apply to such facility or
            organization in relation to such hospital or critical
            access hospital until October 1, 2002.
        (b) Continuing Criteria for Meeting Geographic Location
    Requirement.--Except as provided in subsection (a), in making
    determinations of provider-based status on or after October 1,
    2000, the following rules shall apply:
                (1) The facility or organization shall be treated
            as satisfying any requirements and standards for
            geographic location in relation to a hospital or a
            critical access hospital if the facility or
            organization--
                        (A) satisfies the requirements of section
                    413.65(d)(7) of title 42, Code of Federal
                    Regulations; or
                        (B) is located not more than 35 miles from
                    the main campus of the hospital or critical
                    access hospital.
                (2) The facility or organization shall be treated
            as satisfying any of the requirements and standards for
            geographic location in relation to a hospital or a
            critical access hospital if the facility or
            organization is owned and operated by a hospital or
            critical access hospital that--
                        (A) is owned or operated by a unit of State
                    or local government, is a public or private
                    nonprofit corporation that is formally granted
                    governmental powers by a unit of State or local
                    government, or is a private hospital that has a
                    contract with a State or local government that
                    includes the operation of clinics located off
                    the main campus of the hospital to assure
                    access in a well-defined service area to health
                    care services for low-income individuals who
                    are not entitled to benefits under title XVIII
                    (or medical assistance under a State plan under
                    title XIX) of the Social Security Act; and
                        (B) has a disproportionate share adjustment
                    percentage (as determined under section
                    1886(d)(5)(F) of such Act (42 U.S.C.
                    1395ww(d)(5)(F))) greater than 11.75 percent or
                    is described in clause (i)(II) of such section.
        (c) Temporary Criteria.--For purposes of title XVIII of the
    Social Security Act, a facility or organization for which a
    determination of provider-based status in relation to a
    hospital or critical access hospital is requested on or after
    October 1, 2000, and before October 1, 2002, shall be treated
    as having provider-based status in relation to such a hospital
    or a critical access hospital for any period before a
    determination is made with respect to such status pursuant to
    such request.
        (d) Definitions.--For purposes of this section, the terms
    ``hospital'' and ``critical access hospital'' have the meanings
    given such terms in subsections (e) and (mm)(1), respectively,
    of section 1861 of the Social Security Act (42 U.S.C. 1395x).

    SEC. 405. TREATMENT OF CHILDREN'S HOSPITALS UNDER PROSPECTIVE PAYMENT
                        SYSTEM.

        (a) In General.--Section 1833(t) (42 U.S.C. 1395l(t)) is
    amended--
                (1) in the heading of paragraph (7)(D)(ii), by
            inserting ``and children's hospitals'' after ``cancer
            hospitals''; and
                (2) in paragraphs (7)(D)(ii) and (11), by striking
            ``section 1886(d)(1)(B)(v)'' and inserting ``clause
            (iii) or (v) of section 1886(d)(1)(B)''.
        (b) Effective Date.--The amendments made by subsection (a)
    shall apply as if included in the enactment of section 202 of
    BBRA (113 Stat. 1501A-342).

    SEC. 406. INCLUSION OF TEMPERATURE MONITORED CRYOABLATION IN
                        TRANSITIONAL PASS-THROUGH FOR CERTAIN MEDICAL
                        DEVICES, DRUGS, AND BIOLOGICALS UNDER OPD PPS.

        (a) In General.--Section 1833(t)(6)(A)(ii) (42 U.S.C.
    1395l(t)(6)(A)(ii)) is amended by inserting ``or temperature
    monitored cryoablation'' after ``device of brachytherapy''.
        (b) Effective Date.--The amendment made by subsection (a)
    shall apply to devices furnished on or after April 1, 2001.

            Subtitle B--Provisions Relating to Physicians' Services

    SEC. 411. GAO STUDIES RELATING TO PHYSICIANS' SERVICES.

        (a) Study of Specialist Physicians' Services Furnished in
    Physicians' Offices and Hospital Outpatient Department
    Services.--
                (1) Study.--The Comptroller General of the United
            States shall conduct a study to examine the
            appropriateness of furnishing in physicians' offices
            specialist physicians' services (such as
            gastrointestinal endoscopic physicians' services) which
            are ordinarily furnished in hospital outpatient
            departments. In conducting this study, the Comptroller
            General shall--
                        (A) review available scientific and
                    clinical evidence about the safety of
                    performing procedures in physicians' offices
                    and hospital outpatient departments;
                        (B) assess whether resource-based practice
                    expense relative values established by the
                    Secretary of Health and Human Services under
                    the medicare physician fee schedule under
                    section 1848 of the Social Security Act (42
                    U.S.C. 1395w-4) for such specialist physicians'
                    services furnished in physicians' offices and
                    hospital outpatient departments create an
                    incentive to furnish such services in
                    physicians' offices instead of hospital
                    outpatient departments; and
                        (C) assess the implications for access to
                    care for medicare beneficiaries if the medicare
                    program were not to cover such services in
                    physicians' offices.
                (2) Report.--Not later than July 1, 2001, the
            Comptroller General shall submit to Congress a report
            on such study and include such recommendations as the
            Comptroller General determines to be appropriate.
        (b) Study of the Resource-Based Practice Expense System.--
                (1) Study.--The Comptroller General of the United
            States shall conduct a study on the refinements to the
            practice expense relative value units during the
            transition to a resource-based practice expense system
            for physician payments under the medicare program under
            title XVIII of the Social Security Act. Such study
            shall examine how the Secretary of Health and Human
            Services has accepted and used the practice expense
            data submitted under section 212 of BBRA (113 Stat.
            1501A-350).
                (2) Report.--Not later than July 1, 2001, the
            Comptroller General shall submit to Congress a report
            on the study conducted under paragraph (1) together
            with recommendations regarding--
                        (A) improvements in the process for
                    acceptance and use of practice expense data
                    under section 212 of BBRA;
                        (B) any change or adjustment that is
                    appropriate to ensure full access to a spectrum
                    of care for beneficiaries under the medicare
                    program; and
                        (C) the appropriateness of payments to
                    physicians.

    SEC. 412. PHYSICIAN GROUP PRACTICE DEMONSTRATION.

        (a) In General.--Title XVIII is amended by inserting after
    section 1866 the following new sections:

     ``demonstration of application of physician volume increases to group
                                   practices

        ``Sec. 1866A. (a) Demonstration Program Authorized.--
                ``(1) In general.--The Secretary shall conduct
            demonstration projects to test and, if proven
            effective, expand the use of incentives to health care
            groups participating in the program under this title
            that--
                        ``(A) encourage coordination of the care
                    furnished to individuals under the programs
                    under parts A and B by institutional and other
                    providers, practitioners, and suppliers of
                    health care items and services;
                        ``(B) encourage investment in
                    administrative structures and processes to
                    ensure efficient service delivery; and
                        ``(C) reward physicians for improving
                    health outcomes.

            Such projects shall focus on the efficiencies of
            furnishing health care in a group-practice setting as
            compared to the efficiencies of furnishing health care
            in other health care delivery systems.
                ``(2) Administration by contract.--Except as
            otherwise specifically provided, the Secretary may
            administer the program under this section in accordance
            with section 1866B.
                ``(3) Definitions.--For purposes of this section,
            terms have the following meanings:
                        ``(A) Physician.--Except as the Secretary
                    may otherwise provide, the term `physician'
                    means any individual who furnishes services
                    which may be paid for as physicians' services
                    under this title.
                        ``(B) Health care group.--The term `health
                    care group' means a group of physicians (as
                    defined in subparagraph (A)) organized at least
                    in part for the purpose of providing
                    physicians' services under this title. As the
                    Secretary finds appropriate, a health care
                    group may include a hospital and any other
                    individual or entity furnishing items or
                    services for which payment may be made under
                    this title that is affiliated with the health
                    care group under an arrangement structured so
                    that such individual or entity participates in
                    a demonstration under this section and will
                    share in any bonus earned under subsection (d).
        ``(b) Eligibility Criteria.--
                ``(1) In general.--The Secretary is authorized to
            establish criteria for health care groups eligible to
            participate in a demonstration under this section,
            including criteria relating to numbers of health care
            professionals in, and of patients served by, the group,
            scope of services provided, and quality of care.
                ``(2) Payment method.--A health care group
            participating in the demonstration under this section
            shall agree with respect to services furnished to
            beneficiaries within the scope of the demonstration (as
            determined under subsection (c))--
                        ``(A) to be paid on a fee-for-service
                    basis; and
                        ``(B) that payment with respect to all such
                    services furnished by members of the health
                    care group to such beneficiaries shall (where
                    determined appropriate by the Secretary) be
                    made to a single entity.
                ``(3) Data reporting.--A health care group
            participating in a demonstration under this section
            shall report to the Secretary such data, at such times
            and in such format as the Secretary requires, for
            purposes of monitoring and evaluation of the
            demonstration under this section.
        ``(c) Patients Within Scope of Demonstration.--
                ``(1) In general.--The Secretary shall specify, in
            accordance with this subsection, the criteria for
            identifying those patients of a health care group who
            shall be considered within the scope of the
            demonstration under this section for purposes of
            application of subsection (d) and for assessment of the
            effectiveness of the group in achieving the objectives
            of this section.
                ``(2) Other criteria.--The Secretary may establish
            additional criteria for inclusion of beneficiaries
            within a demonstration under this section, which may
            include frequency of contact with physicians in the
            group or other factors or criteria that the Secretary
            finds to be appropriate.
                ``(3) Notice requirements.--In the case of each
            beneficiary determined to be within the scope of a
            demonstration under this section with respect to a
            specific health care group, the Secretary shall ensure
            that such beneficiary is notified of the incentives,
            and of any waivers of coverage or payment rules,
            applicable to such group under such demonstration.
        ``(d) Incentives.--
                ``(1) Performance target.--The Secretary shall
            establish for each health care group participating in a
            demonstration under this section--
                        ``(A) a base expenditure amount, equal to
                    the average total payments under parts A and B
                    for patients served by the health care group on
                    a fee-for-service basis in a base period
                    determined by the Secretary; and
                        ``(B) an annual per capita expenditure
                    target for patients determined to be within the
                    scope of the demonstration, reflecting the base
                    expenditure amount adjusted for risk and
                    expected growth rates.
                ``(2) Incentive bonus.--The Secretary shall pay to
            each participating health care group (subject to
            paragraph (4)) a bonus for each year under the
            demonstration equal to a portion of the medicare
            savings realized for such year relative to the
            performance target.
                ``(3) Additional bonus for process and outcome
            improvements.--At such time as the Secretary has
            established appropriate criteria based on evidence the
            Secretary determines to be sufficient, the Secretary
            shall also pay to a participating health care group
            (subject to paragraph (4)) an additional bonus for a
            year, equal to such portion as the Secretary may
            designate of the saving to the program under this title
            resulting from process improvements made by and patient
            outcome improvements attributable to activities of the
            group.
                ``(4) Limitation.--The Secretary shall limit bonus
            payments under this section as necessary to ensure that
            the aggregate expenditures under this title (inclusive
            of bonus payments) with respect to patients within the
            scope of the demonstration do not exceed the amount
            which the Secretary estimates would be expended if the
            demonstration projects under this section were not
            implemented.

            ``provisions for administration of demonstration program

        ``Sec. 1866B. (a) General Administrative Authority.--
                ``(1) Beneficiary eligibility.--Except as otherwise
            provided by the Secretary, an individual shall only be
            eligible to receive benefits under the program under
            section 1866A (in this section referred to as the
            `demonstration program') if such individual--
                        ``(A) is enrolled under the program under
                    part B and entitled to benefits under part A;
                    and
                        ``(B) is not enrolled in a Medicare+Choice
                    plan under part C, an eligible organization
                    under a contract under section 1876 (or a
                    similar organization operating under a
                    demonstration project authority), an
                    organization with an agreement under section
                    1833(a)(1)(A), or a PACE program under section
                    1894.
                ``(2) Secretary's discretion as to scope of
            program.--The Secretary may limit the implementation of
            the demonstration program to--
                        ``(A) a geographic area (or areas) that the
                    Secretary designates for purposes of the
                    program, based upon such criteria as the
                    Secretary finds appropriate;
                        ``(B) a subgroup (or subgroups) of
                    beneficiaries or individuals and entities
                    furnishing items or services (otherwise
                    eligible to participate in the program),
                    selected on the basis of the number of such
                    participants that the Secretary finds
                    consistent with the effective and efficient
                    implementation of the program;
                        ``(C) an element (or elements) of the
                    program that the Secretary determines to be
                    suitable for implementation; or
                        ``(D) any combination of any of the limits
                    described in subparagraphs (A) through (C).
                ``(3) Voluntary receipt of items and services.--
            Items and services shall be furnished to an individual
            under the demonstration program only at the
            individual's election.
                ``(4) Agreements.--The Secretary is authorized to
            enter into agreements with individuals and entities to
            furnish health care items and services to beneficiaries
            under the demonstration program.
                ``(5) Program standards and criteria.--The
            Secretary shall establish performance standards for the
            demonstration program including, as applicable,
            standards for quality of health care items and
            services, cost-effectiveness, beneficiary satisfaction,
            and such other factors as the Secretary finds
            appropriate. The eligibility of individuals or entities
            for the initial award, continuation, and renewal of
            agreements to provide health care items and services
            under the program shall be conditioned, at a minimum,
            on performance that meets or exceeds such standards.
                ``(6) Administrative review of decisions affecting
            individuals and entities furnishing services.--An
            individual or entity furnishing services under the
            demonstration program shall be entitled to a review by
            the program administrator (or, if the Secretary has not
            contracted with a program administrator, by the
            Secretary) of a decision not to enter into, or to
            terminate, or not to renew, an agreement with the
            entity to provide health care items or services under
            the program.
                ``(7) Secretary's review of marketing materials.--
            An agreement with an individual or entity furnishing
            services under the demonstration program shall require
            the individual or entity to guarantee that it will not
            distribute materials that market items or services
            under the program without the Secretary's prior review
            and approval.
                ``(8) Payment in full.--
                        ``(A) In general.--Except as provided in
                    subparagraph (B), an individual or entity
                    receiving payment from the Secretary under a
                    contract or agreement under the demonstration
                    program shall agree to accept such payment as
                    payment in full, and such payment shall be in
                    lieu of any payments to which the individual or
                    entity would otherwise be entitled under this
                    title.
                        ``(B) Collection of deductibles and
                    coinsurance.--Such individual or entity may
                    collect any applicable deductible or
                    coinsurance amount from a beneficiary.
        ``(b) Contracts for Program Administration.--
                ``(1) In general.--The Secretary may administer the
            demonstration program through a contract with a program
            administrator in accordance with the provisions of this
            subsection.
                ``(2) Scope of program administrator contracts.--
            The Secretary may enter into such contracts for a
            limited geographic area, or on a regional or national
            basis.
                ``(3) Eligible contractors.--The Secretary may
            contract for the administration of the program with--
                        ``(A) an entity that, under a contract
                    under section 1816 or 1842, determines the
                    amount of and makes payments for health care
                    items and services furnished under this title;
                    or
                        ``(B) any other entity with substantial
                    experience in managing the type of program
                    concerned.
                ``(4) Contract award, duration, and renewal.--
                        ``(A)  In general.--A contract under this
                    subsection shall be for an initial term of up
                    to three years, renewable for additional terms
                    of up to three years.
                        ``(B) Noncompetitive award and renewal for
                    entities administering part a or part b
                    payments.--The Secretary may enter or renew a
                    contract under this subsection with an entity
                    described in paragraph (3)(A) without regard to
                    the requirements of section 5 of title 41,
                    United States Code.
                ``(5) Applicability of federal acquisition
            regulation.--The Federal Acquisition Regulation shall
            apply to program administration contracts under this
            subsection.
                ``(6) Performance standards.--The Secretary shall
            establish performance standards for the program
            administrator including, as applicable, standards for
            the quality and cost-effectiveness of the program
            administered, and such other factors as the Secretary
            finds appropriate. The eligibility of entities for the
            initial award, continuation, and renewal of program
            administration contracts shall be conditioned, at a
            minimum, on performance that meets or exceeds such
            standards.
                ``(7) Functions of program administrator.--A
            program administrator shall perform any or all of the
            following functions, as specified by the Secretary:
                        ``(A) Agreements with entities furnishing
                    health care items and services.--Determine the
                    qualifications of entities seeking to enter or
                    renew agreements to provide services under the
                    demonstration program, and as appropriate enter
                    or renew (or refuse to enter or renew) such
                    agreements on behalf of the Secretary.
                        ``(B) Establishment of payment rates.--
                    Negotiate or otherwise establish, subject to
                    the Secretary's approval, payment rates for
                    covered health care items and services.
                        ``(C) Payment of claims or fees.--
                    Administer payments for health care items or
                    services furnished under the program.
                        ``(D) Payment of bonuses.--Using such
                    guidelines as the Secretary shall establish,
                    and subject to the approval of the Secretary,
                    make bonus payments as described in subsection
                    (c)(2)(A)(ii) to entities furnishing items or
                    services for which payment may be made under
                    the program.
                        ``(E) Oversight.--Monitor the compliance of
                    individuals and entities with agreements under
                    the program with the conditions of
                    participation.
                        ``(F) Administrative review.--Conduct
                    reviews of adverse determinations specified in
                    subsection (a)(6).
                        ``(G) Review of marketing materials.--
                    Conduct a review of marketing materials
                    proposed by an entity furnishing services under
                    the program.
                        ``(H) Additional functions.--Perform such
                    other functions as the Secretary may specify.
                ``(8) Limitation of liability.--The provisions of
            section 1157(b) shall apply with respect to activities
            of contractors and their officers, employees, and
            agents under a contract under this subsection.
                ``(9) Information sharing.--Notwithstanding section
            1106 and section 552a of title 5, United States Code,
            the Secretary is authorized to disclose to an entity
            with a program administration contract under this
            subsection such information (including medical
            information) on individuals receiving health care items
            and services under the program as the entity may
            require to carry out its responsibilities under the
            contract.
        ``(c) Rules Applicable to Both Program Agreements and
    Program Administration Contracts.--
                ``(1) Records, reports, and audits.--The Secretary
            is authorized to require entities with agreements to
            provide health care items or services under the
            demonstration program, and entities with program
            administration contracts under subsection (b), to
            maintain adequate records, to afford the Secretary
            access to such records (including for audit purposes),
            and to furnish such reports and other materials
            (including audited financial statements and performance
            data) as the Secretary may require for purposes of
            implementation, oversight, and evaluation of the
            program and of individuals' and entities' effectiveness
            in performance of such agreements or contracts.
                ``(2) Bonuses.--Notwithstanding any other provision
            of law, but subject to subparagraph (B)(ii), the
            Secretary may make bonus payments under the
            demonstration program from the Federal Health Insurance
            Trust Fund and the Federal Supplementary Medical
            Insurance Trust Fund in amounts that do not exceed the
            amounts authorized under the program in accordance with
            the following:
                        ``(A) Payments to program administrators.--
                    The Secretary may make bonus payments under the
                    program to program administrators.
                        ``(B) Payments to entities furnishing
                    services.--
                                ``(i) In general.--Subject to
                            clause (ii), the Secretary may make
                            bonus payments to individuals or
                            entities furnishing items or services
                            for which payment may be made under the
                            demonstration program, or may authorize
                            the program administrator to make such
                            bonus payments in accordance with such
                            guidelines as the Secretary shall
                            establish and subject to the
                            Secretary's approval.
                                ``(ii) Limitations.--The Secretary
                            may condition such payments on the
                            achievement of such standards related
                            to efficiency, improvement in processes
                            or outcomes of care, or such other
                            factors as the Secretary determines to
                            be appropriate.
                ``(3) Antidiscrimination limitation.--The Secretary
            shall not enter into an agreement with an entity to
            provide health care items or services under the
            demonstration program, or with an entity to administer
            the program, unless such entity guarantees that it will
            not deny, limit, or condition the coverage or provision
            of benefits under the program, for individuals eligible
            to be enrolled under such program, based on any health
            status-related factor described in section 2702(a)(1)
            of the Public Health Service Act.
        ``(d) Limitations on Judicial Review.--The following
    actions and determinations with respect to the demonstration
    program shall not be subject to review by a judicial or
    administrative tribunal:
                ``(1) Limiting the implementation of the program
            under subsection (a)(2).
                ``(2) Establishment of program participation
            standards under subsection (a)(5) or the denial or
            termination of, or refusal to renew, an agreement with
            an entity to provide health care items and services
            under the program.
                ``(3) Establishment of program administration
            contract performance standards under subsection (b)(6),
            the refusal to renew a program administration contract,
            or the noncompetitive award or renewal of a program
            administration contract under subsection (b)(4)(B).
                ``(4) Establishment of payment rates, through
            negotiation or otherwise, under a program agreement or
            a program administration contract.
                ``(5) A determination with respect to the program
            (where specifically authorized by the program authority
            or by subsection (c)(2))--
                        ``(A) as to whether cost savings have been
                    achieved, and the amount of savings; or
                        ``(B) as to whether, to whom, and in what
                    amounts bonuses will be paid.
        ``(e) Application Limited to Parts A and B.--None of the
    provisions of this section or of the demonstration program
    shall apply to the programs under part C.
        ``(f) Reports to Congress.--Not later than two years after
    the date of the enactment of this section, and biennially
    thereafter for six years, the Secretary shall report to
    Congress on the use of authorities under the demonstration
    program. Each report shall address the impact of the use of
    those authorities on expenditures, access, and quality under
    the programs under this title.''.
        (b) GAO Report.--Not later than 2 years after the date on
    which the demonstration project under section 1866A of the
    Social Security Act, as added by subsection (a), is
    implemented, the Comptroller General of the United States shall
    submit to Congress a report on such demonstration project. The
    report shall include such recommendations with respect to
    changes to the demonstration project that the Comptroller
    General determines appropriate.

    SEC. 413. STUDY ON ENROLLMENT PROCEDURES FOR GROUPS THAT RETAIN
                        INDEPENDENT CONTRACTOR PHYSICIANS.

        (a) In General.--The Comptroller General of the United
    States shall conduct a study of the current medicare enrollment
    process for groups that retain independent contractor
    physicians with particular emphasis on hospital-based
    physicians, such as emergency department staffing groups. In
    conducting the evaluation, the Comptroller General shall
    consult with groups that retain independent contractor
    physicians and shall--
                (1) review the issuance of individual medicare
            provider numbers and the possible medicare program
            integrity vulnerabilities of the current process;
                (2) review direct and indirect costs associated
            with the current process incurred by the medicare
            program and groups that retain independent contractor
            physicians;
                (3) assess the effect on program integrity by the
            enrollment of groups that retain independent contractor
            hospital-based physicians; and
                (4) develop suggested procedures for the enrollment
            of these groups.
        (b) Report.--Not later than 1 year after the date of the
    enactment of this Act, the Comptroller General shall submit to
    Congress a report on the study conducted under subsection (a).

                           Subtitle C--Other Services

    SEC. 421. 1-YEAR EXTENSION OF MORATORIUM ON THERAPY CAPS; REPORT ON
                        STANDARDS FOR SUPERVISION OF PHYSICAL THERAPY
                        ASSISTANTS.

        (a) In General.--Section 1833(g)(4) (42 U.S.C. 1395l(g)(4))
    is amended by striking ``2000 and 2001.'' and inserting ``2000,
    2001, and 2002.''.
        (b) Conforming Amendment To Continue Focused Medical
    Reviews of Claims During Moratorium Period.--Section 221(a)(2)
    of BBRA (113 Stat. 1501A-351) is amended by striking ``(under
    the amendment made by paragraph (1)(B))''.
        (c) Study on Standards for Supervision of Physical
    Therapist Assistants.--
                (1) Study.--The Secretary of Health and Human
            Services shall conduct a study of the implications--
                        (A) of eliminating the ``in the room''
                    supervision requirement for medicare payment
                    for services of physical therapy assistants who
                    are supervised by physical therapists; and
                        (B) of such requirement on the cap imposed
                    under section 1833(g) of the Social Security
                    Act (42 U.S.C. 1395l(g)) on physical therapy
                    services.
                (2) Report.--Not later than 18 months after the
            date of the enactment of this Act, the Secretary shall
            submit to Congress a report on the study conducted
            under paragraph (1).

    SEC. 422. UPDATE IN RENAL DIALYSIS COMPOSITE RATE.

        (a) Update.--
                (1) In general.--The last sentence of section
            1881(b)(7) (42 U.S.C. 1395rr(b)(7)) is amended by
            striking ``for such services furnished on or after
            January 1, 2001, by 1.2 percent'' and inserting ``for
            such services furnished on or after January 1, 2001, by
            2.4 percent''.
                (2) Prohibition on exceptions.--
                        (A) In general.--Subject to subparagraphs
                    (B) and (C), the Secretary of Health and Human
                    Services may not provide for an exception under
                    section 1881(b)(7) of the Social Security Act
                    (42 U.S.C. 1395rr(b)(7)) on or after December
                    31, 2000.
                        (B) Deadline for new applications.--In the
                    case of a facility that during 2000 did not
                    file for an exception rate under such section,
                    the facility may submit an application for an
                    exception rate by not later than July 1, 2001.
                        (C) Protection of approved exception
                    rates.--Any exception rate under such section
                    in effect on December 31, 2000 (or, in the case
                    of an application under subparagraph (B), as
                    approved under such application) shall continue
                    in effect so long as such rate is greater than
                    the composite rate as updated by the amendment
                    made by paragraph (1).
        (b) Development of ESRD Market Basket.--
                (1) Development.--The Secretary of Health and Human
            Services shall collect data and develop an ESRD market
            basket whereby the Secretary can estimate, before the
            beginning of a year, the percentage by which the costs
            for the year of the mix of labor and nonlabor goods and
            services included in the ESRD composite rate under
            section 1881(b)(7) of the Social Security Act (42
            U.S.C. 1395rr(b)(7)) will exceed the costs of such mix
            of goods and services for the preceding year. In
            developing such index, the Secretary may take into
            account measures of changes in--
                        (A) technology used in furnishing dialysis
                    services;
                        (B) the manner or method of furnishing
                    dialysis services; and
                        (C) the amounts by which the payments under
                    such section for all services billed by a
                    facility for a year exceed the aggregate
                    allowable audited costs of such services for
                    such facility for such year.
                (2) Report.--The Secretary of Health and Human
            Services shall submit to Congress a report on the index
            developed under paragraph (1) no later than July 1,
            2002, and shall include in the report recommendations
            on the appropriateness of an annual or periodic update
            mechanism for renal dialysis services under the
            medicare program under title XVIII of the Social
            Security Act based on such index.
        (c) Inclusion of Additional Services in Composite Rate.--
                (1) Development.--The Secretary of Health and Human
            Services shall develop a system which includes, to the
            maximum extent feasible, in the composite rate used for
            payment under section 1881(b)(7) of the Social Security
            Act (42 U.S.C. 1395rr(b)(7)), payment for clinical
            diagnostic laboratory tests and drugs (including drugs
            paid under section 1881(b)(11)(B) of such Act (42
            U.S.C. 1395rr(b)(11)(B)) that are routinely used in
            furnishing dialysis services to medicare beneficiaries
            but which are currently separately billable by renal
            dialysis facilities.
                (2) Report.--The Secretary shall include, as part
            of the report submitted under subsection (b)(2), a
            report on the system developed under paragraph (1) and
            recommendations on the appropriateness of incorporating
            the system into medicare payment for renal dialysis
            services.
        (d) GAO Study on Access to Services.--
                (1) Study.--The Comptroller General of the United
            States shall study access of medicare beneficiaries to
            renal dialysis services. Such study shall include
            whether there is a sufficient supply of facilities to
            furnish needed renal dialysis services, whether
            medicare payment levels are appropriate, taking into
            account audited costs of facilities for all services
            furnished, to ensure continued access to such services,
            and improvements in access (and quality of care) that
            may result in the increased use of long nightly and
            short daily hemodialysis modalities.
                (2) Report.--Not later than January 1, 2003, the
            Comptroller General shall submit to Congress a report
            on the study conducted under paragraph (1).
        (e) Special Rule for Payment for 2001.--Notwithstanding the
    amendment made by subsection (a)(1), for purposes of making
    payments under section 1881(b) of the Social Security Act (42
    U.S.C. 1395rr(b)) for dialysis services furnished during 2001,
    the composite rate payment under paragraph (7) of such
    section--
                (1) for services furnished on or after January 1,
            2001, and before April 1, 2001, shall be the composite
            rate payment determined under the provisions of law in
            effect on the day before the date of the enactment of
            this Act; and
                (2) for services furnished on or after April 1,
            2001, and before January 1, 2002, shall be the
            composite rate payment (as determined taking into
            account the amendment made by subsection (a)(1))
            increased by a transitional percentage allowance equal
            to 0.39 percent (to account for the timing of
            implementation of the CPI update).

    SEC. 423. PAYMENT FOR AMBULANCE SERVICES.

        (a) Restoration of Full CPI Increase for 2001.--
                (1) In general.--Section 1834(l)(3) (42 U.S.C.
            1395m(l)(3)) is amended by striking ``reduced in the
            case of 2001 and 2002'' each place it appears and
            inserting ``reduced in the case of 2002''.
                (2) Special rule for payment for 2001.--
            Notwithstanding the amendment made by paragraph (1),
            for purposes of making payments for ambulance services
            under part B of title XVIII of the Social Security Act,
            for services furnished during 2001, the ``percentage
            increase in the consumer price index'' specified in
            section 1834(l)(3)(B) of such Act (42 U.S.C.
            1395m(l)(3)(B))--
                        (A) for services furnished on or after
                    January 1, 2001, and before July 1, 2001, shall
                    be the percentage increase for 2001 as
                    determined under the provisions of law in
                    effect on the day before the date of the
                    enactment of this Act; and
                        (B) for services furnished on or after July
                    1, 2001, and before January 1, 2002, shall be
                    equal to 4.7 percent.
        (b) Mileage Payments.--
                (1) In general.--Section 1834(l)(2)(E) (42 U.S.C.
            1395m(l)(2)(E)) is amended by inserting before the
            period at the end the following: ``, except that such
            phase-in shall provide for full payment of any national
            mileage rate for ambulance services provided by
            suppliers that are paid by carriers in any of the 50
            States where payment by a carrier for such services for
            all such suppliers in such State did not, prior to the
            implementation of the fee schedule, include a separate
            amount for all mileage within the county from which the
            beneficiary is transported''.
                (2) Effective date.--The amendment made by
            paragraph (1) shall apply to services furnished on or
            after July 1, 2001.

    SEC. 424. AMBULATORY SURGICAL CENTERS.

        (a) Delay in Implementation of Prospective Payment
    System.--The Secretary of Health and Human Services may not
    implement a revised prospective payment system for services of
    ambulatory surgical facilities under section 1833(i) of the
    Social Security Act (42 U.S.C. 1395l(i)) before January 1,
    2002.
        (b) Extending Phase-in to 4 Years.--Section 226 of the BBRA
    (113 Stat. 1501A-354) is amended by striking paragraphs (1) and
    (2) and inserting the following:
                ``(1) in the first year of its implementation, only
            a proportion (specified by the Secretary and not to
            exceed \1/4\) of the payment for such services shall be
            made in accordance with such system and the remainder
            shall be made in accordance with current regulations;
            and
                ``(2) in each of the following 2 years a proportion
            (specified by the Secretary and not to exceed \1/2\,
            and \3/4\, respectively) of the payment for such
            services shall be made under such system and the
            remainder shall be made in accordance with current
            regulations.''.
        (c) Deadline for Use of 1999 or Later Cost Surveys.--
    Section 226 of BBRA (113 Stat. 1501A-354) is amended by adding
    at the end the following:
    ``By not later than January 1, 2003, the Secretary shall
    incorporate data from a 1999 medicare cost survey or a
    subsequent cost survey for purposes of implementing or revising
    such system.''.

    SEC. 425. FULL UPDATE FOR DURABLE MEDICAL EQUIPMENT.

        (a) In General.--Section 1834(a)(14) (42 U.S.C.
    1395m(a)(14)) is amended--
                (1) by redesignating subparagraph (D) as
            subparagraph (F);
                (2) in subparagraph (C)--
                        (A) by striking ``through 2002'' and
                    inserting ``through 2000''; and
                        (B) by striking ``and'' at the end; and
                (3) by inserting after subparagraph (C) the
            following new subparagraphs:
                        ``(D) for 2001, the percentage increase in
                    the consumer price index for all urban
                    consumers (U.S. city average) for the 12-month
                    period ending with June 2000;
                        ``(E) for 2002, 0 percentage points; and''.
        (b) Special Rule for Payment for 2001.--Notwithstanding the
    amendments made by subsection (a), for purposes of making
    payments for durable medical equipment under section 1834(a) of
    the Social Security Act (42 U.S.C. 1395m(a)), other than for
    oxygen and oxygen equipment specified in paragraph (9) of such
    section, the payment basis recognized for 2001 under such
    section--
                (1) for items furnished on or after January 1,
            2001, and before July 1, 2001, shall be the payment
            basis for 2001 as determined under the provisions of
            law in effect on the day before the date of the
            enactment of this Act (including the application of
            section 228(a)(1) of BBRA); and
                (2) for items furnished on or after July 1, 2001,
            and before January 1, 2002, shall be the payment basis
            that is determined under such section 1834(a) if such
            section 228(a)(1) did not apply and taking into account
            the amendment made by subsection (a), increased by a
            transitional percentage allowance equal to 3.28 percent
            (to account for the timing of implementation of the CPI
            update).

    SEC. 426. FULL UPDATE FOR ORTHOTICS AND PROSTHETICS.

        (a) In General.--Section 1834(h)(4)(A) (42 U.S.C.
    1395m(h)(4)(A)) is amended--
                (1) by redesignating clause (vi) as clause (viii);
                (2) in clause (v)--
                        (A) by striking ``through 2002'' and
                    inserting ``through 2000''; and
                        (B) by striking ``and'' at the end; and
                (3) by inserting after clause (v) the following new
            clause:
                                ``(vi) for 2001, the percentage
                            increase in the consumer price index
                            for all urban consumers (U.S. city
                            average) for the 12-month period ending
                            with June 2000;
                                ``(vii) for 2002, 1 percent; and''.
        (b) Special Rule for Payment for 2001.--Notwithstanding the
    amendments made by subsection (a), for purposes of making
    payments for prosthetic devices and orthotics and prosthetics
    (as defined in subparagraphs (B) and (C) of paragraph (4) of
    section 1834(h) of the Social Security Act (42 U.S.C. 1395m(h))
    under such section, the payment basis recognized for 2001 under
    paragraph (2) of such section--
                (1) for items furnished on or after January 1,
            2001, and before July 1, 2001, shall be the payment
            basis for 2001 as determined under the provisions of
            law in effect on the day before the date of the
            enactment of this Act; and
                (2) for items furnished on or after July 1, 2001,
            and before January 1, 2002, shall be the payment basis
            that is determined under such section taking into
            account the amendments made by subsection (a),
            increased by a transitional percentage allowance equal
            to 2.6 percent (to account for the timing of
            implementation of the CPI update).

    SEC. 427. ESTABLISHMENT OF SPECIAL PAYMENT PROVISIONS AND REQUIREMENTS
                        FOR PROSTHETICS AND CERTAIN CUSTOM-FABRICATED
                        ORTHOTIC ITEMS.

        (a) In General.--Section 1834(h)(1) (42 U.S.C. 1395m(h)(1))
    is amended by adding at the end the following:
                        ``(F) Special payment rules for certain
                    prosthetics and custom-fabricated orthotics.--
                                ``(i) In general.--No payment shall
                            be made under this subsection for an
                            item of custom-fabricated orthotics
                            described in clause (ii) or for an item
                            of prosthetics unless such item is--
                                        ``(I) furnished by a
                                    qualified practitioner; and
                                        ``(II) fabricated by a
                                    qualified practitioner or a
                                    qualified supplier at a
                                    facility that meets such
                                    criteria as the Secretary
                                    determines appropriate.
                                ``(ii) Description of custom-
                            fabricated item.--
                                        ``(I) In general.--An item
                                    described in this clause is an
                                    item of custom-fabricated
                                    orthotics that requires
                                    education, training, and
                                    experience to custom-fabricate
                                    and that is included in a list
                                    established by the Secretary in
                                    subclause (II). Such an item
                                    does not include shoes and shoe
                                    inserts.
                                        ``(II) List of items.--The
                                    Secretary, in consultation with
                                    appropriate experts in
                                    orthotics (including national
                                    organizations representing
                                    manufacturers of orthotics),
                                    shall establish and update as
                                    appropriate a list of items to
                                    which this subparagraph
                                    applies. No item may be
                                    included in such list unless
                                    the item is individually
                                    fabricated for the patient over
                                    a positive model of the
                                    patient.
                                ``(iii) Qualified practitioner
                            defined.--In this subparagraph, the
                            term `qualified practitioner' means a
                            physician or other individual who--
                                        ``(I) is a qualified
                                    physical therapist or a
                                    qualified occupational
                                    therapist;
                                        ``(II) in the case of a
                                    State that provides for the
                                    licensing of orthotics and
                                    prosthetics, is licensed in
                                    orthotics or prosthetics by the
                                    State in which the item is
                                    supplied; or
                                        ``(III) in the case of a
                                    State that does not provide for
                                    the licensing of orthotics and
                                    prosthetics, is specifically
                                    trained and educated to provide
                                    or manage the provision of
                                    prosthetics and custom-designed
                                    or -fabricated orthotics, and
                                    is certified by the American
                                    Board for Certification in
                                    Orthotics and Prosthetics, Inc.
                                    or by the Board for Orthotist/
                                    Prosthetist Certification, or
                                    is credentialed and approved by
                                    a program that the Secretary
                                    determines, in consultation
                                    with appropriate experts in
                                    orthotics and prosthetics, has
                                    training and education
                                    standards that are necessary to
                                    provide such prosthetics and
                                    orthotics.
                                ``(iv) Qualified supplier
                            defined.--In this subparagraph, the
                            term `qualified supplier' means any
                            entity that is accredited by the
                            American Board for Certification in
                            Orthotics and Prosthetics, Inc. or by
                            the Board for Orthotist/Prosthetist
                            Certification, or accredited and
                            approved by a program that the
                            Secretary determines has accreditation
                            and approval standards that are
                            essentially equivalent to those of such
                            Board.''.
        (b) Effective Date.--Not later than 1 year after the date
    of the enactment of this Act, the Secretary of Health and Human
    Services shall promulgate revised regulations to carry out the
    amendment made by subsection (a) using a negotiated rulemaking
    process under subchapter III of chapter 5 of title 5, United
    States Code.
        (c) GAO Study and Report.--
                (1) Study.--The Comptroller General of the United
            States shall conduct a study on HCFA Ruling 96-1,
            issued on September 1, 1996, with respect to
            distinguishing orthotics from durable medical equipment
            under the medicare program under title XVIII of the
            Social Security Act. The study shall assess the
            following matters:
                        (A) The compliance of the Secretary of
                    Health and Human Services with the
                    Administrative Procedures Act (under chapter 5
                    of title 5, United States Code) in making such
                    ruling.
                        (B) The potential impact of such ruling on
                    the health care furnished to medicare
                    beneficiaries under the medicare program,
                    especially those beneficiaries with
                    degenerative musculoskeletal conditions.
                        (C) The potential for fraud and abuse under
                    the medicare program if payment were provided
                    for orthotics used as a component of durable
                    medical equipment only when made under the
                    special payment provision for certain
                    prosthetics and custom-fabricated orthotics
                    under section 1834(h)(1)(F) of the Social
                    Security Act, as added by subsection (a) and
                    furnished by qualified practitioners under that
                    section.
                        (D) The impact on payments under titles
                    XVIII and XIX of the Social Security Act if
                    such ruling were overturned.
                (2) Report.--Not later than 6 months after the date
            of the enactment of this Act, the Comptroller General
            shall submit to Congress a report on the study
            conducted under paragraph (1).

    SEC. 428. REPLACEMENT OF PROSTHETIC DEVICES AND PARTS.

        (a) In General.--Section 1834(h)(1) (42 U.S.C.
    1395m(h)(1)), as amended by section 427(a), is further amended
    by adding at the end the following new subparagraph:
                        ``(G) Replacement of prosthetic devices and
                    parts.--
                                ``(i) In general.--Payment shall be
                            made for the replacement of prosthetic
                            devices which are artificial limbs, or
                            for the replacement of any part of such
                            devices, without regard to continuous
                            use or useful lifetime restrictions if
                            an ordering physician determines that
                            the provision of a replacement device,
                            or a replacement part of such a device,
                            is necessary because of any of the
                            following:
                                        ``(I) A change in the
                                    physiological condition of the
                                    patient.
                                        ``(II) An irreparable
                                    change in the condition of the
                                    device, or in a part of the
                                    device.
                                        ``(III) The condition of
                                    the device, or the part of the
                                    device, requires repairs and
                                    the cost of such repairs would
                                    be more than 60 percent of the
                                    cost of a replacement device,
                                    or, as the case may be, of the
                                    part being replaced.
                                ``(ii) Confirmation may be required
                            if device or part being replaced is
                            less than 3 years old.--If a physician
                            determines that a replacement device,
                            or a replacement part, is necessary
                            pursuant to clause (i)--
                                        ``(I) such determination
                                    shall be controlling; and
                                        ``(II) such replacement
                                    device or part shall be deemed
                                    to be reasonable and necessary
                                    for purposes of section
                                    1862(a)(1)(A);
                            except that if the device, or part,
                            being replaced is less than 3 years old
                            (calculated from the date on which the
                            beneficiary began to use the device or
                            part), the Secretary may also require
                            confirmation of necessity of the
                            replacement device or replacement part,
                            as the case may be.''.
        (b) Preemption of Rule.--The provisions of section
    1834(h)(1)(G) as added by subsection (a) shall supersede any
    rule that as of the date of the enactment of this Act may have
    applied a 5-year replacement rule with regard to prosthetic
    devices.
        (c) Effective Date.--The amendment made by subsection (a)
    shall apply to items replaced on or after April 1, 2001.

    SEC. 429. REVISED PART B PAYMENT FOR DRUGS AND BIOLOGICALS AND RELATED
                        SERVICES.

        (a) Recommendations for Revised Payment Methodology for
    Drugs and Biologicals.--
                (1) Study.--
                        (A) In general.--The Comptroller General of
                    the United States shall conduct a study on the
                    reimbursement for drugs and biologicals under
                    the current medicare payment methodology
                    (provided under section 1842(o) of the Social
                    Security Act (42 U.S.C. 1395u(o))) and for
                    related services under part B of title XVIII of
                    such Act. In the study, the Comptroller General
                    shall--
                                (i) identify the average prices at
                            which such drugs and biologicals are
                            acquired by physicians and other
                            suppliers;
                                (ii) quantify the difference
                            between such average prices and the
                            reimbursement amount under such
                            section; and
                                (iii) determine the extent to which
                            (if any) payment under such part is
                            adequate to compensate physicians,
                            providers of services, or other
                            suppliers of such drugs and biologicals
                            for costs incurred in the
                            administration, handling, or storage of
                            such drugs or biologicals.
                        (B) Consultation.--In conducting the study
                    under subparagraph (A), the Comptroller General
                    shall consult with physicians, providers of
                    services, and suppliers of drugs and
                    biologicals under the medicare program under
                    title XVIII of such Act, as well as other
                    organizations involved in the distribution of
                    such drugs and biologicals to such physicians,
                    providers of services, and suppliers.
                (2) Report.--Not later than 9 months after the date
            of the enactment of this Act, the Comptroller General
            shall submit to Congress and to the Secretary of Health
            and Human Services a report on the study conducted
            under this subsection, and shall include in such report
            recommendations for revised payment methodologies
            described in paragraph (3).
                (3) Recommendations for revised payment
            methodologies.--
                        (A) In general.--The Comptroller General
                    shall provide specific recommendations for
                    revised payment methodologies for reimbursement
                    for drugs and biologicals and for related
                    services under the medicare program. The
                    Comptroller General may include in the
                    recommendations--
                                (i) proposals to make adjustments
                            under subsection (c) of section 1848 of
                            the Social Security Act (42 U.S.C.
                            1395w-4) for the practice expense
                            component of the physician fee schedule
                            under such section for the costs
                            incurred in the administration,
                            handling, or storage of certain
                            categories of such drugs and
                            biologicals, if appropriate; and
                                (ii) proposals for new payments to
                            providers of services or suppliers for
                            such costs, if appropriate.
                        (B) Ensuring patient access to care.--In
                    making recommendations under this paragraph,
                    the Comptroller General shall ensure that any
                    proposed revised payment methodology is
                    designed to ensure that medicare beneficiaries
                    continue to have appropriate access to health
                    care services under the medicare program.
                        (C) Matters considered.--In making
                    recommendations under this paragraph, the
                    Comptroller General shall consider--
                                (i) the method and amount of
                            reimbursement for similar drugs and
                            biologicals made by large group health
                            plans;
                                (ii) as a result of any revised
                            payment methodology, the potential for
                            patients to receive inpatient or
                            outpatient hospital services in lieu of
                            services in a physician's office; and
                                (iii) the effect of any revised
                            payment methodology on the delivery of
                            drug therapies by hospital outpatient
                            departments.
                        (D) Coordination with bbra study.--In
                    making recommendations under this paragraph,
                    the Comptroller General shall conclude and take
                    into account the results of the study provided
                    for under section 213(a) of BBRA (113 Stat.
                    1501A-350).
        (b) Implementation of New Payment Methodology.--
                (1) In general.--Notwithstanding any other
            provision of law, based on the recommendations
            contained in the report under subsection (a), the
            Secretary of Health and Human Services, subject to
            paragraph (2), shall revise the payment methodology
            under section 1842(o) of the Social Security Act (42
            U.S.C. 1395u(o)) for drugs and biologicals furnished
            under part B of the medicare program. To the extent the
            Secretary determines appropriate, the Secretary may
            provide for the adjustments to payments amounts
            referred to in subsection (a)(3)(A)(i) or additional
            payments referred to in subsection (a)(2)(A)(ii).
                (2) Limitation.--In revising the payment
            methodology under paragraph (1), in no case may the
            estimated aggregate payments for drugs and biologicals
            under the revised system (including additional payments
            referred to in subsection (a)(3)(A)(ii)) exceed the
            aggregate amount of payment for such drugs and
            biologicals, as projected by the Secretary, that would
            have been made under the payment methodology in effect
            under such section 1842(o).
        (c) Moratorium on Decreases in Payment Rates.--
    Notwithstanding any other provision of law, effective for drugs
    and biologicals furnished on or after January 1, 2001, the
    Secretary may not directly or indirectly decrease the rates of
    reimbursement (in effect as of such date) for drugs and
    biologicals under the current medicare payment methodology
    (provided under section 1842(o) of the Social Security Act (42
    U.S.C. 1395u(o))) until such time as the Secretary has reviewed
    the report submitted under subsection (a)(2).

    SEC. 430. CONTRAST ENHANCED DIAGNOSTIC PROCEDURES UNDER HOSPITAL
                        PROSPECTIVE PAYMENT SYSTEM.

        (a) Separate Classification.--Section 1833(t)(2) (42 U.S.C.
    1395l(t)(2)) is amended--
                (1) by striking ``and'' at the end of subparagraph
            (E);
                (2) by striking the period at the end of
            subparagraph (F) and inserting ``; and''; and
                (3) by inserting after subparagraph (F) the
            following new subparagraph:
                        ``(G) the Secretary shall create additional
                    groups of covered OPD services that classify
                    separately those procedures that utilize
                    contrast agents from those that do not.''.
        (b) Conforming Amendment.--Section 1861(t)(1) (42 U.S.C.
    1395x(t)(1)) is amended by inserting ``(including contrast
    agents)'' after ``only such drugs''.
        (c) Effective Date.--The amendments made by this section
    apply to items and services furnished on or after July 1, 2001.

    SEC. 431. QUALIFICATIONS FOR COMMUNITY MENTAL HEALTH CENTERS.

        (a) Medicare Program.--Section 1861(ff)(3)(B) (42 U.S.C.
    1395x(ff)(3)(B)) is amended by striking ``entity'' and all that
    follows and inserting the following: ``entity that--
                ``(i)(I) provides the mental health services
            described in section 1913(c)(1) of the Public Health
            Service Act; or
                ``(II) in the case of an entity operating in a
            State that by law precludes the entity from providing
            itself the service described in subparagraph (E) of
            such section, provides for such service by contract
            with an approved organization or entity (as determined
            by the Secretary);
                ``(ii) meets applicable licensing or certification
            requirements for community mental health centers in the
            State in which it is located; and
                ``(iii) meets such additional conditions as the
            Secretary shall specify to ensure (I) the health and
            safety of individuals being furnished such services,
            (II) the effective and efficient furnishing of such
            services, and (III) the compliance of such entity with
            the criteria described in section 1931(c)(1) of the
            Public Health Service Act.''.
        (b) Effective Date.--The amendment made by subsection (a)
    shall apply with respect to community mental health centers
    with respect to services furnished on or after the first day of
    the third month beginning after the date of the enactment of
    this Act.

    SEC. 432. PAYMENT OF PHYSICIAN AND NONPHYSICIAN SERVICES IN CERTAIN
                        INDIAN PROVIDERS.

        (a) In General.--Section 1880 (42 U.S.C. 1395qq) is
    amended--
                (1) by redesignating subsection (e), as added by
            section 3(b)(1) of the Alaska Native and American
            Indian Direct Reimbursement Act of 2000 (Public Law
            106-417), as subsection (f); and
                (2) by inserting after subsection (d) the following
            new subsection:
        ``(e)(1)(A) Notwithstanding section 1835(d), subject to
    subparagraph (B), the Secretary shall make payment under part B
    to a hospital or an ambulatory care clinic (whether provider-
    based or freestanding) that is operated by the Indian Health
    Service or by an Indian tribe or tribal organization (as
    defined for purposes of subsection (a)) for services described
    in paragraph (2) furnished in or at the direction of the
    hospital or clinic under the same situations, terms, and
    conditions as would apply if the services were furnished in or
    at the direction of such a hospital or clinic that was not
    operated by such Service, tribe, or organization.
        ``(B) Payment shall not be made for services under
    subparagraph (A) to the extent that payment is otherwise made
    for such services under this title.
        ``(2) The services described in this paragraph are the
    following:
                ``(A) Services for which payment is made under
            section 1848.
                ``(B) Services furnished by a practitioner
            described in section 1842(b)(18)(C) for which payment
            under part B is made under a fee schedule.
                ``(C) Services furnished by a physical therapist or
            occupational therapist as described in section 1861(p)
            for which payment under part B is made under a fee
            schedule.
        ``(3) Subsection (c) shall not apply to payments made under
    this subsection.''.
        (b) Conforming Amendments.--
                (1) Coverage amendment.--Section 1862(a)(3) (42
            U.S.C. 1395y(a)(3)) is amended--
                        (A) by striking the second comma after
                    ``1861(aa)(1)''; and
                        (B) by inserting ``in the case of services
                    for which payment may be made under section
                    1880(e),'' after ``as defined in section
                    1861(aa)(3),''.
                (2) Direct payment amendment.--The first sentence
            of section 1842(b)(6) (42 U.S.C. 1395u(b)(6)) is
            amended--
                        (A) by striking ``and (F)'' and inserting
                    ``(F)''; and
                        (B) by inserting before the period the
                    following: ``, and (G) in the case of services
                    in a hospital or clinic to which section
                    1880(e) applies, payment shall be made to such
                    hospital or clinic''.
        (c) Effective Date.--The amendments made by this section
    shall apply to services furnished on or after July 1, 2001.

    SEC. 433. GAO STUDY ON COVERAGE OF SURGICAL FIRST ASSISTING SERVICES OF
                        CERTIFIED REGISTERED NURSE FIRST ASSISTANTS.

        (a) Study.--The Comptroller General of the United States
    shall conduct a study on the effect on the medicare program
    under title XVIII of the Social Security Act and on medicare
    beneficiaries of coverage under the program of surgical first
    assisting services of certified registered nurse first
    assistants. The Comptroller General shall consider the
    following when conducting the study:
                (1) Any impact on the quality of care furnished to
            medicare beneficiaries by reason of such coverage.
                (2) Appropriate education and training requirements
            for certified registered nurse first assistants who
            furnish such first assisting services.
                (3) Appropriate rates of payment under the program
            to such certified registered nurse first assistants for
            furnishing such services, taking into account the costs
            of compensation, overhead, and supervision attributable
            to certified registered nurse first assistants.
        (b) Report.--Not later than 1 year after the date of the
    enactment of this Act, the Comptroller General shall submit to
    Congress a report on the study conducted under subsection (a).

    SEC. 434. MEDPAC STUDY AND REPORT ON MEDICARE REIMBURSEMENT FOR
                        SERVICES PROVIDED BY CERTAIN PROVIDERS.

        (a) Study.--The Medicare Payment Advisory Commission shall
    conduct a study on the appropriateness of the current payment
    rates under the medicare program under title XVIII of the
    Social Security Act for services provided by a--
                (1) certified nurse-midwife (as defined in
            subsection (gg)(2) of section 1861 of such Act (42
            U.S.C. 1395x));
                (2) physician assistant (as defined in subsection
            (aa)(5)(A) of such section);
                (3) nurse practitioner (as defined in such
            subsection); and
                (4) clinical nurse specialist (as defined in
            subsection (aa)(5)(B) of such section).
    The study shall separately examine the appropriateness of such
    payment rates for orthopedic physician assistants, taking into
    consideration the requirements for accreditation, training, and
    education.
        (b) Report.--Not later than 18 months after the date of the
    enactment of this Act, the Commission shall submit to Congress
    a report on the study conducted under subsection (a), together
    with any recommendations for legislation that the Commission
    determines to be appropriate as a result of such study.

    SEC. 435. MEDPAC STUDY AND REPORT ON MEDICARE COVERAGE OF SERVICES
                        PROVIDED BY CERTAIN NONPHYSICIAN PROVIDERS.

        (a) Study.--
                (1) In general.--The Medicare Payment Advisory
            Commission shall conduct a study to determine the
            appropriateness of providing coverage under the
            medicare program under title XVIII of the Social
            Security Act for services provided by a--
                        (A) surgical technologist;
                        (B) marriage counselor;
                        (C) marriage and family therapist;
                        (D) pastoral care counselor; and
                        (E) licensed professional counselor of
                    mental health.
                (2) Costs to program.--The study shall consider the
            short-term and long-term benefits, and costs to the
            medicare program, of providing the coverage described
            in paragraph (1).
        (b) Report.--Not later than 18 months after the date of the
    enactment of this Act, the Commission shall submit to Congress
    a report on the study conducted under subsection (a), together
    with any recommendations for legislation that the Commission
    determines to be appropriate as a result of such study.

    SEC. 436. GAO STUDY AND REPORT ON THE COSTS OF EMERGENCY AND MEDICAL
                        TRANSPORTATION SERVICES.

        (a) Study.--The Comptroller General of the United States
    shall conduct a study on the costs of providing emergency and
    medical transportation services across the range of acuity
    levels of conditions for which such transportation services are
    provided.
        (b) Report.--Not later than 18 months after the date of the
    enactment of this Act, the Comptroller General shall submit to
    Congress a report on the study conducted under subsection (a),
    together with recommendations for any changes in methodology or
    payment level necessary to fairly compensate suppliers of
    emergency and medical transportation services and to ensure the
    access of beneficiaries under the medicare program under title
    XVIII of the Social Security Act.

    SEC. 437. GAO STUDIES AND REPORTS ON MEDICARE PAYMENTS.

        (a) GAO Study on HCFA Post-Payment Audit Process.--
                (1) Study.--The Comptroller General of the United
            States shall conduct a study on the post-payment audit
            process under the medicare program under title XVIII of
            the Social Security Act as such process applies to
            physicians, including the proper level of resources
            that the Health Care Financing Administration should
            devote to educating physicians regarding--
                        (A) coding and billing;
                        (B) documentation requirements; and
                        (C) the calculation of overpayments.
                (2) Report.--Not later than 18 months after the
            date of the enactment of this Act, the Comptroller
            General shall submit to Congress a report on the study
            conducted under paragraph (1) together with specific
            recommendations for changes or improvements in the
            post-payment audit process described in such paragraph.
        (b) GAO Study on Administration and Oversight.--
                (1) Study.--The Comptroller General of the United
            States shall conduct a study on the aggregate effects
            of regulatory, audit, oversight, and paperwork burdens
            on physicians and other health care providers
            participating in the medicare program under title XVIII
            of the Social Security Act.
                (2) Report.--Not later than 18 months after the
            date of the enactment of this Act, the Comptroller
            General shall submit to Congress a report on the study
            conducted under paragraph (1) together with
            recommendations regarding any area in which--
                        (A) a reduction in paperwork, an ease of
                    administration, or an appropriate change in
                    oversight and review may be accomplished; or
                        (B) additional payments or education are
                    needed to assist physicians and other health
                    care providers in understanding and complying
                    with any legal or regulatory requirements.

    SEC. 438. MEDPAC STUDY ON ACCESS TO OUTPATIENT PAIN MANAGEMENT
                        SERVICES.

        (a) Study.--The Medicare Payment Advisory Commission shall
    conduct a study on the barriers to coverage and payment for
    outpatient interventional pain medicine procedures under the
    medicare program under title XVIII of the Social Security Act.
    Such study shall examine--
                (1) the specific barriers imposed under the
            medicare program on the provision of pain management
            procedures in hospital outpatient departments,
            ambulatory surgery centers, and physicians' offices;
            and
                (2) the consistency of medicare payment policies
            for pain management procedures in those different
            settings.
        (b) Report.--Not later than 1 year after the date of the
    enactment of this Act, the Commission shall submit to Congress
    a report on the study.

                 TITLE V--PROVISIONS RELATING TO PARTS A AND B

                        Subtitle A--Home Health Services

    SEC. 501. 1-YEAR ADDITIONAL DELAY IN APPLICATION OF 15 PERCENT
                        REDUCTION ON PAYMENT LIMITS FOR HOME HEALTH
                        SERVICES.

        (a) In General.--Section 1895(b)(3)(A)(i) (42 U.S.C.
    1395fff(b)(3)(A)(i)) is amended--
                (1) by redesignating subclause (II) as subclause
            (III);
                (2) in subclause (III), as redesignated, by
            striking ``described in subclause (I)'' and inserting
            ``described in subclause (II)''; and
                (3) by inserting after subclause (I) the following
            new subclause:
                                        ``(II) For the 12-month
                                    period beginning after the
                                    period described in subclause
                                    (I), such amount (or amounts)
                                    shall be equal to the amount
                                    (or amounts) determined under
                                    subclause (I), updated under
                                    subparagraph (B).''.
        (b) Change in Report.--Section 302(c) of BBRA (113 Stat.
    1501A-360) is amended--
                (1) by striking ``Not later than'' and all that
            follows through ``(42 U.S.C. 1395fff)'' and inserting
            ``Not later than April 1, 2002''; and
                (2) by striking ``Secretary'' and inserting
            ``Comptroller General of the United States''.
        (c) Case Mix Adjustment Corrections.--
                (1) In general.--Section 1895(b)(3)(B) (42 U.S.C.
            1395fff(b)(3)(B)) is amended by adding at the end the
            following new clause:
                                ``(iv) Adjustment for case mix
                            changes.--Insofar as the Secretary
                            determines that the adjustments under
                            paragraph (4)(A)(i) for a previous
                            fiscal year (or estimates that such
                            adjustments for a future fiscal year)
                            did (or are likely to) result in a
                            change in aggregate payments under this
                            subsection during the fiscal year that
                            are a result of changes in the coding
                            or classification of different units of
                            services that do not reflect real
                            changes in case mix, the Secretary may
                            adjust the standard prospective payment
                            amount (or amounts) under paragraph (3)
                            for subsequent fiscal years so as to
                            eliminate the effect of such coding or
                            classification changes.''.
                (2) Effective date.--The amendment made by
            paragraph (1) shall apply to episodes concluding on or
            after October 1, 2001.

    SEC. 502. RESTORATION OF FULL HOME HEALTH MARKET BASKET UPDATE FOR HOME
                        HEALTH SERVICES FOR FISCAL YEAR 2001.

        (a) In General.--Section 1861(v)(1)(L)(x) (42 U.S.C.
    1395x(v)(1)(L)(x)) is amended--
                (1) by striking ``2001,''; and
                (2) by adding at the end the following: ``With
            respect to cost reporting periods beginning during
            fiscal year 2001, the update to any limit under this
            subparagraph shall be the home health market basket
            index.''.
        (b) Special Rule for Payment for Fiscal Year 2001 Based on
    Adjusted Prospective Payment Amounts.--
                (1) In general.--Notwithstanding the amendments
            made by subsection (a), for purposes of making payments
            under section 1895(b) of the Social Security Act (42
            U.S.C. 1395fff(b)) for home health services furnished
            during fiscal year 2001, the Secretary of Health and
            Human Services shall--
                        (A) with respect to episodes and visits
                    ending on or after October 1, 2000, and before
                    April 1, 2001, use the final standardized and
                    budget neutral prospective payment amounts for
                    60-day episodes and standardized average per
                    visit amounts for fiscal year 2001 as published
                    by the Secretary in the Federal Register on
                    July 3, 2000 (65 Fed. Reg. 41128-41214); and
                        (B) with respect to episodes and visits
                    ending on or after April 1, 2001, and before
                    October 1, 2001, use such amounts increased by
                    2.2 percent.
                (2) No effect on other payments or
            determinations.--The Secretary shall not take the
            provisions of paragraph (1) into account for purposes
            of payments, determinations, or budget neutrality
            adjustments under section 1895 of the Social Security
            Act.

    SEC. 503. TEMPORARY TWO-MONTH PERIODIC INTERIM PAYMENT.

        (a) In General.--Notwithstanding the amendments made by
    section 4603(b) of BBA (42 U.S.C. 1395fff note), in the case of
    a home health agency that was receiving periodic interim
    payments under section 1815(e)(2) of the Social Security Act
    (42 U.S.C. 1395g(e)(2)) as of September 30, 2000, and that is
    not described in subsection (b), the Secretary of Health and
    Human Services shall, as soon as practicable, make a single
    periodic interim payment to such agency in an amount equal to
    four times the last full fortnightly periodic interim payment
    made to such agency under the payment system in effect prior to
    the implementation of the prospective payment system under
    section 1895(b) of such Act (42 U.S.C. 1395fff(b)). Such amount
    of such periodic interim payment shall be included in the
    tentative settlement of the last cost report for the home
    health agency under the payment system in effect prior to the
    implementation of such prospective payment system, regardless
    of the ending date of such cost report.
        (b) Exceptions.--The Secretary shall not make an additional
    periodic interim payment under subsection (a) in the case of a
    home health agency (determined as of the day that such payment
    would otherwise be made) that--
                (1) notifies the Secretary that such agency does
            not want to receive such payment;
                (2) is not receiving payments pursuant to section
            405.371 of title 42, Code of Federal Regulations;
                (3) is excluded from the medicare program under
            title XI of the Social Security Act;
                (4) no longer has a provider agreement under
            section 1866 of such Act (42 U.S.C. 1395cc);
                (5) is no longer in business; or
                (6) is subject to a court order providing for the
            withholding of medicare payments under title XVIII of
            such Act.

    SEC. 504. USE OF TELEHEALTH IN DELIVERY OF HOME HEALTH SERVICES.

        Section 1895 (42 U.S.C. 1395fff) is amended by adding at
    the end the following new subsection:
        ``(e) Construction Related to Home Health Services.--
                ``(1) Telecommunications.--Nothing in this section
            shall be construed as preventing a home health agency
            furnishing a home health unit of service for which
            payment is made under the prospective payment system
            established by this section for such units of service
            from furnishing services via a telecommunication system
            if such services--
                        ``(A) do not substitute for in-person home
                    health services ordered as part of a plan of
                    care certified by a physician pursuant to
                    section 1814(a)(2)(C) or 1835(a)(2)(A); and
                        ``(B) are not considered a home health
                    visit for purposes of eligibility or payment
                    under this title.
                ``(2) Physician certification.--Nothing in this
            section shall be construed as waiving the requirement
            for a physician certification under section
            1814(a)(2)(C) or 1835(a)(2)(A) of such Act (42 U.S.C.
            1395f(a)(2)(C), 1395n(a)(2)(A)) for the payment for
            home health services, whether or not furnished via a
            telecommunications system.''.

    SEC. 505. STUDY ON COSTS TO HOME HEALTH AGENCIES OF PURCHASING
                        NONROUTINE MEDICAL SUPPLIES.

        (a) Study.--The Comptroller General of the United States
    shall conduct a study on variations in prices paid by home
    health agencies furnishing home health services under the
    medicare program under title XVIII of the Social Security Act
    in purchasing nonroutine medical supplies, including ostomy
    supplies, and volumes of such supplies used, shall determine
    the effect (if any) of variations on prices and volumes in the
    provision of such services.
        (b) Report.--Not later than August 15, 2001, the
    Comptroller General shall submit to Congress a report on the
    study conducted under subsection (a), and shall include in the
    report recommendations respecting whether payment for
    nonroutine medical supplies furnished in connection with home
    health services should be made separately from the prospective
    payment system for such services.

    SEC. 506. TREATMENT OF BRANCH OFFICES; GAO STUDY ON SUPERVISION OF HOME
                        HEALTH CARE PROVIDED IN ISOLATED RURAL AREAS.

        (a) Treatment of Branch Offices.--
                (1) In general.--Notwithstanding any other
            provision of law, in determining for purposes of title
            XVIII of the Social Security Act whether an office of a
            home health agency constitutes a branch office or a
            separate home health agency, neither the time nor
            distance between a parent office of the home health
            agency and a branch office shall be the sole
            determinant of a home health agency's branch office
            status.
                (2) Consideration of forms of technology in
            definition of supervision.--The Secretary of Health and
            Human Services may include forms of technology in
            determining what constitutes ``supervision'' for
            purposes of determining a home heath agency's branch
            office status under paragraph (1).
        (b) GAO Study.--
                (1) Study.--The Comptroller General of the United
            States shall conduct a study of the provision of
            adequate supervision to maintain quality of home health
            services delivered under the medicare program under
            title XVIII of the Social Security Act in isolated
            rural areas. The study shall evaluate the methods that
            home health agency branches and subunits use to
            maintain adequate supervision in the delivery of
            services to clients residing in those areas, how these
            methods of supervision compare to requirements that
            subunits independently meet medicare conditions of
            participation, and the resources utilized by subunits
            to meet such conditions.
                (2) Report.--Not later than January 1, 2002, the
            Comptroller General shall submit to Congress a report
            on the study conducted under paragraph (1). The report
            shall include recommendations on whether exceptions are
            needed for subunits and branches of home health
            agencies under the medicare program to maintain access
            to the home health benefit or whether alternative
            policies should be developed to assure adequate
            supervision and access and recommendations on whether a
            national standard for supervision is appropriate.

    SEC. 507. CLARIFICATION OF THE HOMEBOUND DEFINITION UNDER THE MEDICARE
                        HOME HEALTH BENEFIT.

        (a) Clarification.--
                (1) In general.--Sections 1814(a) and 1835(a) (42
            U.S.C. 1395f(a) and 1395n(a)) are each amended--
                        (A) in the last sentence, by striking ``,
                    and that absences of the individual from home
                    are infrequent or of relatively short duration,
                    or are attributable to the need to receive
                    medical treatment''; and
                        (B) by adding at the end the following new
                    sentences: ``Any absence of an individual from
                    the home attributable to the need to receive
                    health care treatment, including regular
                    absences for the purpose of participating in
                    therapeutic, psychosocial, or medical treatment
                    in an adult day-care program that is licensed
                    or certified by a State, or accredited, to
                    furnish adult day-care services in the State
                    shall not disqualify an individual from being
                    considered to be `confined to his home'. Any
                    other absence of an individual from the home
                    shall not so disqualify an individual if the
                    absence is of infrequent or of relatively short
                    duration. For purposes of the preceding
                    sentence, any absence for the purpose of
                    attending a religious service shall be deemed
                    to be an absence of infrequent or short
                    duration.''.
                (2) Effective date.--The amendments made by
            paragraph (1) shall apply to home health services
            furnished on or after the date of the enactment of this
            Act.
        (b) Study.--
                (1) In general.--The Comptroller General of the
            United States shall conduct an evaluation of the effect
            of the amendment on the cost of and access to home
            health services under the medicare program under title
            XVIII of the Social Security Act.
                (2) Report.--Not later than 1 year after the date
            of the enactment of this Act, the Comptroller General
            shall submit to Congress a report on the study
            conducted under paragraph (1).

    SEC. 508. TEMPORARY INCREASE FOR HOME HEALTH SERVICES FURNISHED IN A
                        RURAL AREA.

        (a) 24-Month Increase Beginning April 1, 2001.--In the case
    of home health services furnished in a rural area (as defined
    in section 1886(d)(2)(D) of the Social Security Act (42 U.S.C.
    1395ww(d)(2)(D))) on or after April 1, 2001, and before April
    1, 2003, the Secretary of Health and Human Services shall
    increase the payment amount otherwise made under section 1895
    of such Act (42 U.S.C. 1395fff) for such services by 10
    percent.
        (b) Waiving Budget Neutrality.--The Secretary shall not
    reduce the standard prospective payment amount (or amounts)
    under section 1895 of the Social Security Act (42 U.S.C.
    1395fff) applicable to home health services furnished during a
    period to offset the increase in payments resulting from the
    application of subsection (a).

                 Subtitle B--Direct Graduate Medical Education

    SEC. 511. INCREASE IN FLOOR FOR DIRECT GRADUATE MEDICAL EDUCATION
                        PAYMENTS.

        Section 1886(h)(2)(D)(iii) (42 U.S.C. 1395ww(h)(2)(D)(iii))
    is amended--
                (1) in the heading, by striking ``in fiscal year
            2001 at 70 percent of'' and inserting ``for''; and
                (2) by inserting after ``70 percent'' the
            following: ``, and for the cost reporting period
            beginning during fiscal year 2002 shall not be less
            than 85 percent,''.

    SEC. 512. CHANGE IN DISTRIBUTION FORMULA FOR MEDICARE+CHOICE-RELATED
                        NURSING AND ALLIED HEALTH EDUCATION COSTS.

        (a) In General.--Section 1886(l)(2)(C) (42 U.S.C.
    1395ww(l)(2)(C)) is amended by striking all that follows
    ``multiplied by'' and inserting the following: ``the ratio of--
                                ``(i) the product of (I) the
                            Secretary's estimate of the ratio of
                            the amount of payments made under
                            section 1861(v) to the hospital for
                            nursing and allied health education
                            activities for the hospital's cost
                            reporting period ending in the second
                            preceding fiscal year, to the
                            hospital's total inpatient days for
                            such period, and (II) the total number
                            of inpatient days (as established by
                            the Secretary) for such period which
                            are attributable to services furnished
                            to individuals who are enrolled under a
                            risk sharing contract with an eligible
                            organization under section 1876 and who
                            are entitled to benefits under part A
                            or who are enrolled with a
                            Medicare+Choice organization under part
                            C; to
                                ``(ii) the sum of the products
                            determined under clause (i) for such
                            cost reporting periods.''.
        (b) Effective Date.--The amendment made by subsection (a)
    shall apply to portions of cost reporting periods occurring on
    or after January 1, 2001.

          Subtitle C--Changes in Medicare Coverage and Appeals Process

    SEC. 521. REVISIONS TO MEDICARE APPEALS PROCESS.

        (a) Conduct of Reconsiderations of Determinations by
    Independent Contractors.--Section 1869 (42 U.S.C. 1395ff) is
    amended to read as follows:

                           ``determinations; appeals

        ``Sec. 1869. (a) Initial Determinations.--
                ``(1) Promulgations of regulations.--The Secretary
            shall promulgate regulations and make initial
            determinations with respect to benefits under part A or
            part B in accordance with those regulations for the
            following:
                        ``(A) The initial determination of whether
                    an individual is entitled to benefits under
                    such parts.
                        ``(B) The initial determination of the
                    amount of benefits available to the individual
                    under such parts.
                        ``(C) Any other initial determination with
                    respect to a claim for benefits under such
                    parts, including an initial determination by
                    the Secretary that payment may not be made, or
                    may no longer be made, for an item or service
                    under such parts, an initial determination made
                    by a utilization and quality control peer
                    review organization under section 1154(a)(2),
                    and an initial determination made by an entity
                    pursuant to a contract (other than a contract
                    under section 1852) with the Secretary to
                    administer provisions of this title or title
                    XI.
                ``(2) Deadlines for making initial
            determinations.--
                        ``(A) In general.--Subject to subparagraph
                    (B), in promulgating regulations under
                    paragraph (1), initial determinations shall be
                    concluded by not later than the 45-day period
                    beginning on the date the fiscal intermediary
                    or the carrier, as the case may be, receives a
                    claim for benefits from an individual as
                    described in paragraph (1). Notice of such
                    determination shall be mailed to the individual
                    filing the claim before the conclusion of such
                    45-day period.
                        ``(B) Clean claims.--Subparagraph (A) shall
                    not apply with respect to any claim that is
                    subject to the requirements of section
                    1816(c)(2) or 1842(c)(2).
                ``(3) Redeterminations.--
                        ``(A) In general.--In promulgating
                    regulations under paragraph (1) with respect to
                    initial determinations, such regulations shall
                    provide for a fiscal intermediary or a carrier
                    to make a redetermination with respect to a
                    claim for benefits that is denied in whole or
                    in part.
                        ``(B) Limitations.--
                                ``(i) Appeal rights.--No initial
                            determination may be reconsidered or
                            appealed under subsection (b) unless
                            the fiscal intermediary or carrier has
                            made a redetermination of that initial
                            determination under this paragraph.
                                ``(ii) Decisionmaker.--No
                            redetermination may be made by any
                            individual involved in the initial
                            determination.
                        ``(C) Deadlines.--
                                ``(i) Filing for redetermination.--
                            A redetermination under subparagraph
                            (A) shall be available only if notice
                            is filed with the Secretary to request
                            the redetermination by not later than
                            the end of the 120-day period beginning
                            on the date the individual receives
                            notice of the initial determination
                            under paragraph (2).
                                ``(ii) Concluding
                            redeterminations.--Redeterminations
                            shall be concluded by not later than
                            the 30-day period beginning on the date
                            the fiscal intermediary or the carrier,
                            as the case may be, receives a request
                            for a redetermination. Notice of such
                            determination shall be mailed to the
                            individual filing the claim before the
                            conclusion of such 30-day period.
                        ``(D) Construction.--For purposes of the
                    succeeding provisions of this section a
                    redetermination under this paragraph shall be
                    considered to be part of the initial
                    determination.
        ``(b) Appeal Rights.--
                ``(1) In general.--
                        ``(A) Reconsideration of initial
                    determination.--Subject to subparagraph (D),
                    any individual dissatisfied with any initial
                    determination under subsection (a)(1) shall be
                    entitled to reconsideration of the
                    determination, and, subject to subparagraphs
                    (D) and (E), a hearing thereon by the Secretary
                    to the same extent as is provided in section
                    205(b) and to judicial review of the
                    Secretary's final decision after such hearing
                    as is provided in section 205(g). For purposes
                    of the preceding sentence, any reference to the
                    `Commissioner of Social Security' or the
                    `Social Security Administration' in subsection
                    (g) or (l) of section 205 shall be considered a
                    reference to the `Secretary' or the `Department
                    of Health and Human Services', respectively.
                        ``(B) Representation by provider or
                    supplier.--
                                ``(i) In general.--Sections 206(a),
                            1102, and 1871 shall not be construed
                            as authorizing the Secretary to
                            prohibit an individual from being
                            represented under this section by a
                            person that furnishes or supplies the
                            individual, directly or indirectly,
                            with services or items, solely on the
                            basis that the person furnishes or
                            supplies the individual with such a
                            service or item.
                                ``(ii) Mandatory waiver of right to
                            payment from beneficiary.--Any person
                            that furnishes services or items to an
                            individual may not represent an
                            individual under this section with
                            respect to the issue described in
                            section 1879(a)(2) unless the person
                            has waived any rights for payment from
                            the beneficiary with respect to the
                            services or items involved in the
                            appeal.
                                ``(iii) Prohibition on payment for
                            representation.--If a person furnishes
                            services or items to an individual and
                            represents the individual under this
                            section, the person may not impose any
                            financial liability on such individual
                            in connection with such representation.
                                ``(iv) Requirements for
                            representatives of a beneficiary.--The
                            provisions of section 205(j) and of
                            section 206 (other than subsection
                            (a)(4) of such section) regarding
                            representation of claimants shall apply
                            to representation of an individual with
                            respect to appeals under this section
                            in the same manner as they apply to
                            representation of an individual under
                            those sections.
                        ``(C) Succession of rights in cases of
                    assignment.--The right of an individual to an
                    appeal under this section with respect to an
                    item or service may be assigned to the provider
                    of services or supplier of the item or service
                    upon the written consent of such individual
                    using a standard form established by the
                    Secretary for such an assignment.
                        ``(D) Time limits for filing appeals.--
                                ``(i) Reconsiderations.--
                            Reconsideration under subparagraph (A)
                            shall be available only if the
                            individual described in subparagraph
                            (A) files notice with the Secretary to
                            request reconsideration by not later
                            than the end of the 180-day period
                            beginning on the date the individual
                            receives notice of the redetermination
                            under subsection (a)(3), or within such
                            additional time as the Secretary may
                            allow.
                                ``(ii) Hearings conducted by the
                            secretary.--The Secretary shall
                            establish in regulations time limits
                            for the filing of a request for a
                            hearing by the Secretary in accordance
                            with provisions in sections 205 and
                            206.
                        ``(E) Amounts in controversy.--
                                ``(i) In general.--A hearing (by
                            the Secretary) shall not be available
                            to an individual under this section if
                            the amount in controversy is less than
                            $100, and judicial review shall not be
                            available to the individual if the
                            amount in controversy is less than
                            $1,000.
                                ``(ii) Aggregation of claims.--In
                            determining the amount in controversy,
                            the Secretary, under regulations, shall
                            allow two or more appeals to be
                            aggregated if the appeals involve--
                                        ``(I) the delivery of
                                    similar or related services to
                                    the same individual by one or
                                    more providers of services or
                                    suppliers, or
                                        ``(II) common issues of law
                                    and fact arising from services
                                    furnished to two or more
                                    individuals by one or more
                                    providers of services or
                                    suppliers.
                        ``(F) Expedited proceedings.--
                                ``(i) Expedited determination.--In
                            the case of an individual who has
                            received notice from a provider of
                            services that such provider plans--
                                        ``(I) to terminate services
                                    provided to an individual and a
                                    physician certifies that
                                    failure to continue the
                                    provision of such services is
                                    likely to place the
                                    individual's health at
                                    significant risk, or
                                        ``(II) to discharge the
                                    individual from the provider of
                                    services,
                            the individual may request, in writing
                            or orally, an expedited determination
                            or an expedited reconsideration of an
                            initial determination made under
                            subsection (a)(1), as the case may be,
                            and the Secretary shall provide such
                            expedited determination or expedited
                            reconsideration.
                                ``(ii) Expedited hearing.--In a
                            hearing by the Secretary under this
                            section, in which the moving party
                            alleges that no material issues of fact
                            are in dispute, the Secretary shall
                            make an expedited determination as to
                            whether any such facts are in dispute
                            and, if not, shall render a decision
                            expeditiously.
                        ``(G) Reopening and revision of
                    determinations.--The Secretary may reopen or
                    revise any initial determination or
                    reconsidered determination described in this
                    subsection under guidelines established by the
                    Secretary in regulations.
        ``(c) Conduct of Reconsiderations by Independent
    Contractors.--
                ``(1) In general.--The Secretary shall enter into
            contracts with qualified independent contractors to
            conduct reconsiderations of initial determinations made
            under subparagraphs (B) and (C) of subsection (a)(1).
            Contracts shall be for an initial term of three years
            and shall be renewable on a triennial basis thereafter.
                ``(2) Qualified independent contractor.--For
            purposes of this subsection, the term `qualified
            independent contractor' means an entity or organization
            that is independent of any organization under contract
            with the Secretary that makes initial determinations
            under subsection (a)(1), and that meets the
            requirements established by the Secretary consistent
            with paragraph (3).
                ``(3) Requirements.--Any qualified independent
            contractor entering into a contract with the Secretary
            under this subsection shall meet all of the following
            requirements:
                        ``(A) In general.--The qualified
                    independent contractor shall perform such
                    duties and functions and assume such
                    responsibilities as may be required by the
                    Secretary to carry out the provisions of this
                    subsection, and shall have sufficient training
                    and expertise in medical science and legal
                    matters to make reconsiderations under this
                    subsection.
                        ``(B) Reconsiderations.--
                                ``(i) In general.--The qualified
                            independent contractor shall review
                            initial determinations. Where an
                            initial determination is made with
                            respect to whether an item or service
                            is reasonable and necessary for the
                            diagnosis or treatment of illness or
                            injury (under section 1862(a)(1)(A)),
                            such review shall include consideration
                            of the facts and circumstances of the
                            initial determination by a panel of
                            physicians or other appropriate health
                            care professionals and any decisions
                            with respect to the reconsideration
                            shall be based on applicable
                            information, including clinical
                            experience and medical, technical, and
                            scientific evidence.
                                ``(ii) Effect of national and local
                            coverage determinations.--
                                        ``(I) National coverage
                                    determinations.--If the
                                    Secretary has made a national
                                    coverage determination pursuant
                                    to the requirements established
                                    under the third sentence of
                                    section 1862(a), such
                                    determination shall be binding
                                    on the qualified independent
                                    contractor in making a decision
                                    with respect to a
                                    reconsideration under this
                                    section.
                                        ``(II) Local coverage
                                    determinations.--If the
                                    Secretary has made a local
                                    coverage determination, such
                                    determination shall not be
                                    binding on the qualified
                                    independent contractor in
                                    making a decision with respect
                                    to a reconsideration under this
                                    section. Notwithstanding the
                                    previous sentence, the
                                    qualified independent
                                    contractor shall consider the
                                    local coverage determination in
                                    making such decision.
                                        ``(III) Absence of national
                                    or local coverage
                                    determination.--In the absence
                                    of such a national coverage
                                    determination or local coverage
                                    determination, the qualified
                                    independent contractor shall
                                    make a decision with respect to
                                    the reconsideration based on
                                    applicable information,
                                    including clinical experience
                                    and medical, technical, and
                                    scientific evidence.
                        ``(C) Deadlines for decisions.--
                                ``(i) Reconsiderations.--Except as
                            provided in clauses (iii) and (iv), the
                            qualified independent contractor shall
                            conduct and conclude a reconsideration
                            under subparagraph (B), and mail the
                            notice of the decision with respect to
                            the reconsideration by not later than
                            the end of the 30-day period beginning
                            on the date a request for
                            reconsideration has been timely filed.
                                ``(ii) Consequences of failure to
                            meet deadline.--In the case of a
                            failure by the qualified independent
                            contractor to mail the notice of the
                            decision by the end of the period
                            described in clause (i) or to provide
                            notice by the end of the period
                            described in clause (iii), as the case
                            may be, the party requesting the
                            reconsideration or appeal may request a
                            hearing before the Secretary,
                            notwithstanding any requirements for a
                            reconsidered determination for purposes
                            of the party's right to such hearing.
                                ``(iii) Expedited
                            reconsiderations.--The qualified
                            independent contractor shall perform an
                            expedited reconsideration under
                            subsection (b)(1)(F) as follows:
                                        ``(I) Deadline for
                                    decision.--Notwithstanding
                                    section 216(j) and subject to
                                    clause (iv), not later than the
                                    end of the 72-hour period
                                    beginning on the date the
                                    qualified independent
                                    contractor has received a
                                    request for such
                                    reconsideration and has
                                    received such medical or other
                                    records needed for such
                                    reconsideration, the qualified
                                    independent contractor shall
                                    provide notice (by telephone
                                    and in writing) to the
                                    individual and the provider of
                                    services and attending
                                    physician of the individual of
                                    the results of the
                                    reconsideration. Such
                                    reconsideration shall be
                                    conducted regardless of whether
                                    the provider of services or
                                    supplier will charge the
                                    individual for continued
                                    services or whether the
                                    individual will be liable for
                                    payment for such continued
                                    services.
                                        ``(II) Consultation with
                                    beneficiary.--In such
                                    reconsideration, the qualified
                                    independent contractor shall
                                    solicit the views of the
                                    individual involved.
                                        ``(III) Special rule for
                                    hospital discharges.--A
                                    reconsideration of a discharge
                                    from a hospital shall be
                                    conducted under this clause in
                                    accordance with the provisions
                                    of paragraphs (2), (3), and (4)
                                    of section 1154(e) as in effect
                                    on the date that precedes the
                                    date of the enactment of this
                                    subparagraph.
                                ``(iv) Extension.--An individual
                            requesting a reconsideration under this
                            subparagraph may be granted such
                            additional time as the individual
                            specifies (not to exceed 14 days) for
                            the qualified independent contractor to
                            conclude the reconsideration. The
                            individual may request such additional
                            time orally or in writing.
                        ``(D) Limitation on individual reviewing
                    determinations.--
                                ``(i) Physicians and health care
                            professional.--No physician or health
                            care professional under the employ of a
                            qualified independent contractor may
                            review--
                                        ``(I) determinations
                                    regarding health care services
                                    furnished to a patient if the
                                    physician or health care
                                    professional was directly
                                    responsible for furnishing such
                                    services; or
                                        ``(II) determinations
                                    regarding health care services
                                    provided in or by an
                                    institution, organization, or
                                    agency, if the physician or any
                                    member of the family of the
                                    physician or health care
                                    professional has, directly or
                                    indirectly, a significant
                                    financial interest in such
                                    institution, organization, or
                                    agency.
                                ``(ii) Family described.--For
                            purposes of this paragraph, the family
                            of a physician or health care
                            professional includes the spouse (other
                            than a spouse who is legally separated
                            from the physician or health care
                            professional under a decree of divorce
                            or separate maintenance), children
                            (including stepchildren and legally
                            adopted children), grandchildren,
                            parents, and grandparents of the
                            physician or health care professional.
                        ``(E) Explanation of decision.--Any
                    decision with respect to a reconsideration of a
                    qualified independent contractor shall be in
                    writing, and shall include a detailed
                    explanation of the decision as well as a
                    discussion of the pertinent facts and
                    applicable regulations applied in making such
                    decision, and in the case of a determination of
                    whether an item or service is reasonable and
                    necessary for the diagnosis or treatment of
                    illness or injury (under section 1862(a)(1)(A))
                    an explanation of the medical and scientific
                    rationale for the decision.
                        ``(F) Notice requirements.--Whenever a
                    qualified independent contractor makes a
                    decision with respect to a reconsideration
                    under this subsection, the qualified
                    independent contractor shall promptly notify
                    the entity responsible for the payment of
                    claims under part A or part B of such decision.
                        ``(G) Dissemination of decisions on
                    reconsiderations.--Each qualified independent
                    contractor shall make available all decisions
                    with respect to reconsiderations of such
                    qualified independent contractors to fiscal
                    intermediaries (under section 1816), carriers
                    (under section 1842), peer review organizations
                    (under part B of title XI), Medicare+Choice
                    organizations offering Medicare+Choice plans
                    under part C, other entities under contract
                    with the Secretary to make initial
                    determinations under part A or part B or title
                    XI, and to the public. The Secretary shall
                    establish a methodology under which qualified
                    independent contractors shall carry out this
                    subparagraph.
                        ``(H) Ensuring consistency in decisions.--
                    Each qualified independent contractor shall
                    monitor its decisions with respect to
                    reconsiderations to ensure the consistency of
                    such decisions with respect to requests for
                    reconsideration of similar or related matters.
                        ``(I) Data collection.--
                                ``(i) In general.--Consistent with
                            the requirements of clause (ii), a
                            qualified independent contractor shall
                            collect such information relevant to
                            its functions, and keep and maintain
                            such records in such form and manner as
                            the Secretary may require to carry out
                            the purposes of this section and shall
                            permit access to and use of any such
                            information and records as the
                            Secretary may require for such
                            purposes.
                                ``(ii) Type of data collected.--
                            Each qualified independent contractor
                            shall keep accurate records of each
                            decision made, consistent with
                            standards established by the Secretary
                            for such purpose. Such records shall be
                            maintained in an electronic database in
                            a manner that provides for
                            identification of the following:
                                        ``(I) Specific claims that
                                    give rise to appeals.
                                        ``(II) Situations
                                    suggesting the need for
                                    increased education for
                                    providers of services,
                                    physicians, or suppliers.
                                        ``(III) Situations
                                    suggesting the need for changes
                                    in national or local coverage
                                    policy.
                                        ``(IV) Situations
                                    suggesting the need for changes
                                    in local medical review
                                    policies.
                                ``(iii) Annual reporting.--Each
                            qualified independent contractor shall
                            submit annually to the Secretary (or
                            otherwise as the Secretary may request)
                            records maintained under this paragraph
                            for the previous year.
                        ``(J) Hearings by the secretary.--The
                    qualified independent contractor shall (i)
                    prepare such information as is required for an
                    appeal of a decision of the contractor with
                    respect to a reconsideration to the Secretary
                    for a hearing, including as necessary,
                    explanations of issues involved in the decision
                    and relevant policies, and (ii) participate in
                    such hearings as required by the Secretary.
                ``(4) Number of qualified independent
            contractors.--The Secretary shall enter into contracts
            with not fewer than 12 qualified independent
            contractors under this subsection.
                ``(5) Limitation on qualified independent
            contractor liability.--No qualified independent
            contractor having a contract with the Secretary under
            this subsection and no person who is employed by, or
            who has a fiduciary relationship with, any such
            qualified independent contractor or who furnishes
            professional services to such qualified independent
            contractor, shall be held by reason of the performance
            of any duty, function, or activity required or
            authorized pursuant to this subsection or to a valid
            contract entered into under this subsection, to have
            violated any criminal law, or to be civilly liable
            under any law of the United States or of any State (or
            political subdivision thereof) provided due care was
            exercised in the performance of such duty, function, or
            activity.
        ``(d) Deadlines for Hearings by the Secretary.--
                ``(1) Hearing by administrative law judge.--
                        ``(A) In general.--Except as provided in
                    subparagraph (B), an administrative law judge
                    shall conduct and conclude a hearing on a
                    decision of a qualified independent contractor
                    under subsection (c) and render a decision on
                    such hearing by not later than the end of the
                    90-day period beginning on the date a request
                    for hearing has been timely filed.
                        ``(B) Waiver of deadline by party seeking
                    hearing.--The 90-day period under subparagraph
                    (A) shall not apply in the case of a motion or
                    stipulation by the party requesting the hearing
                    to waive such period.
                ``(2) Departmental appeals board review.--
                        ``(A) In general.--The Departmental Appeals
                    Board of the Department of Health and Human
                    Services shall conduct and conclude a review of
                    the decision on a hearing described in
                    paragraph (1) and make a decision or remand the
                    case to the administrative law judge for
                    reconsideration by not later than the end of
                    the 90-day period beginning on the date a
                    request for review has been timely filed.
                        ``(B) DAB hearing procedure.--In reviewing
                    a decision on a hearing under this paragraph,
                    the Departmental Appeals Board shall review the
                    case de novo.
                ``(3) Consequences of failure to meet deadlines.--
                        ``(A) Hearing by administrative law
                    judge.--In the case of a failure by an
                    administrative law judge to render a decision
                    by the end of the period described in paragraph
                    (1), the party requesting the hearing may
                    request a review by the Departmental Appeals
                    Board of the Department of Health and Human
                    Services, notwithstanding any requirements for
                    a hearing for purposes of the party's right to
                    such a review.
                        ``(B) Departmental appeals board review.--
                    In the case of a failure by the Departmental
                    Appeals Board to render a decision by the end
                    of the period described in paragraph (2), the
                    party requesting the hearing may seek judicial
                    review, notwithstanding any requirements for a
                    hearing for purposes of the party's right to
                    such judicial review.
        ``(e) Administrative Provisions.--
                ``(1) Limitation on review of certain
            regulations.--A regulation or instruction that relates
            to a method for determining the amount of payment under
            part B and that was initially issued before January 1,
            1981, shall not be subject to judicial review.
                ``(2) Outreach.--The Secretary shall perform such
            outreach activities as are necessary to inform
            individuals entitled to benefits under this title and
            providers of services and suppliers with respect to
            their rights of, and the process for, appeals made
            under this section. The Secretary shall use the toll-
            free telephone number maintained by the Secretary under
            section 1804(b) to provide information regarding appeal
            rights and respond to inquiries regarding the status of
            appeals.
                ``(3) Continuing education requirement for
            qualified independent contractors and administrative
            law judges.--The Secretary shall provide to each
            qualified independent contractor, and, in consultation
            with the Commissioner of Social Security, to
            administrative law judges that decide appeals of
            reconsiderations of initial determinations or other
            decisions or determinations under this section, such
            continuing education with respect to coverage of items
            and services under this title or policies of the
            Secretary with respect to part B of title XI as is
            necessary for such qualified independent contractors
            and administrative law judges to make informed
            decisions with respect to appeals.
                ``(4) Reports.--
                        ``(A) Annual report to congress.--The
                    Secretary shall submit to Congress an annual
                    report describing the number of appeals for the
                    previous year, identifying issues that require
                    administrative or legislative actions, and
                    including any recommendations of the Secretary
                    with respect to such actions. The Secretary
                    shall include in such report an analysis of
                    determinations by qualified independent
                    contractors with respect to inconsistent
                    decisions and an analysis of the causes of any
                    such inconsistencies.
                        ``(B) Survey.--Not less frequently than
                    every 5 years, the Secretary shall conduct a
                    survey of a valid sample of individuals
                    entitled to benefits under this title who have
                    filed appeals of determinations under this
                    section, providers of services, and suppliers
                    to determine the satisfaction of such
                    individuals or entities with the process for
                    appeals of determinations provided for under
                    this section and education and training
                    provided by the Secretary with respect to that
                    process. The Secretary shall submit to Congress
                    a report describing the results of the survey,
                    and shall include any recommendations for
                    administrative or legislative actions that the
                    Secretary determines appropriate.''.
        (b) Applicability of Requirements and Limitations on
    Liability of Qualified Independent Contractors to
    Medicare+Choice Independent Appeals Contractors.--Section
    1852(g)(4) (42 U.S.C. 1395w-22(g)(4)) is amended by adding at
    the end the following: ``The provisions of section 1869(c)(5)
    shall apply to independent outside entities under contract with
    the Secretary under this paragraph.''.
        (c) Conforming Amendment.--Section 1154(e) (42 U.S.C.
    1320c-3(e)) is amended by striking paragraphs (2), (3), and
    (4).
        (d) Effective Date.--The amendments made by this section
    shall apply with respect to initial determinations made on or
    after October 1, 2002.

    SEC. 522. REVISIONS TO MEDICARE COVERAGE PROCESS.

        (a) Review of Determinations.--Section 1869 (42 U.S.C.
    1395ff), as amended by section 521, is further amended by
    adding at the end the following new subsection:
        ``(f) Review of Coverage Determinations.--
                ``(1) National coverage determinations.--
                        ``(A) In general.--Review of any national
                    coverage determination shall be subject to the
                    following limitations:
                                ``(i) Such a determination shall
                            not be reviewed by any administrative
                            law judge.
                                ``(ii) Such a determination shall
                            not be held unlawful or set aside on
                            the ground that a requirement of
                            section 553 of title 5, United States
                            Code, or section 1871(b) of this title,
                            relating to publication in the Federal
                            Register or opportunity for public
                            comment, was not satisfied.
                                ``(iii) Upon the filing of a
                            complaint by an aggrieved party, such a
                            determination shall be reviewed by the
                            Departmental Appeals Board of the
                            Department of Health and Human
                            Services. In conducting such a review,
                            the Departmental Appeals Board--
                                        ``(I) shall review the
                                    record and shall permit
                                    discovery and the taking of
                                    evidence to evaluate the
                                    reasonableness of the
                                    determination, if the Board
                                    determines that the record is
                                    incomplete or lacks adequate
                                    information to support the
                                    validity of the determination;
                                        ``(II) may, as appropriate,
                                    consult with appropriate
                                    scientific and clinical
                                    experts; and
                                        ``(III) shall defer only to
                                    the reasonable findings of
                                    fact, reasonable
                                    interpretations of law, and
                                    reasonable applications of fact
                                    to law by the Secretary.
                                ``(iv) The Secretary shall
                            implement a decision of the
                            Departmental Appeals Board within 30
                            days of receipt of such decision.
                                ``(v) A decision of the
                            Departmental Appeals Board constitutes
                            a final agency action and is subject to
                            judicial review.
                        ``(B) Definition of national coverage
                    determination.--For purposes of this section,
                    the term `national coverage determination'
                    means a determination by the Secretary with
                    respect to whether or not a particular item or
                    service is covered nationally under this title,
                    but does not include a determination of what
                    code, if any, is assigned to a particular item
                    or service covered under this title or a
                    determination with respect to the amount of
                    payment made for a particular item or service
                    so covered.
                ``(2) Local coverage determination.--
                        ``(A) In general.--Review of any local
                    coverage determination shall be subject to the
                    following limitations:
                                ``(i) Upon the filing of a
                            complaint by an aggrieved party, such a
                            determination shall be reviewed by an
                            administrative law judge of the Social
                            Security Administration. The
                            administrative law judge--
                                        ``(I) shall review the
                                    record and shall permit
                                    discovery and the taking of
                                    evidence to evaluate the
                                    reasonableness of the
                                    determination, if the
                                    administrative law judge
                                    determines that the record is
                                    incomplete or lacks adequate
                                    information to support the
                                    validity of the determination;
                                        ``(II) may, as appropriate,
                                    consult with appropriate
                                    scientific and clinical
                                    experts; and
                                        ``(III) shall defer only to
                                    the reasonable findings of
                                    fact, reasonable
                                    interpretations of law, and
                                    reasonable applications of fact
                                    to law by the Secretary.
                                ``(ii) Upon the filing of a
                            complaint by an aggrieved party, a
                            decision of an administrative law judge
                            under clause (i) shall be reviewed by
                            the Departmental Appeals Board of the
                            Department of Health and Human
                            Services.
                                ``(iii) The Secretary shall
                            implement a decision of the
                            administrative law judge or the
                            Departmental Appeals Board within 30
                            days of receipt of such decision.
                                ``(iv) A decision of the
                            Departmental Appeals Board constitutes
                            a final agency action and is subject to
                            judicial review.
                        ``(B) Definition of local coverage
                    determination.--For purposes of this section,
                    the term `local coverage determination' means a
                    determination by a fiscal intermediary or a
                    carrier under part A or part B, as applicable,
                    respecting whether or not a particular item or
                    service is covered on an intermediary- or
                    carrier-wide basis under such parts, in
                    accordance with section 1862(a)(1)(A).
                ``(3) No material issues of fact in dispute.--In
            the case of a determination that may otherwise be
            subject to review under paragraph (1)(A)(iii) or
            paragraph (2)(A)(i), where the moving party alleges
            that--
                        ``(A) there are no material issues of fact
                    in dispute, and
                        ``(B) the only issue of law is the
                    constitutionality of a provision of this title,
                    or that a regulation, determination, or ruling
                    by the Secretary is invalid,
            the moving party may seek review by a court of
            competent jurisdiction without filing a complaint under
            such paragraph and without otherwise exhausting other
            administrative remedies.
                ``(4) Pending national coverage determinations.--
                        ``(A) In general.--In the event the
                    Secretary has not issued a national coverage or
                    noncoverage determination with respect to a
                    particular type or class of items or services,
                    an aggrieved person (as described in paragraph
                    (5)) may submit to the Secretary a request to
                    make such a determination with respect to such
                    items or services. By not later than the end of
                    the 90-day period beginning on the date the
                    Secretary receives such a request
                    (notwithstanding the receipt by the Secretary
                    of new evidence (if any) during such 90-day
                    period), the Secretary shall take one of the
                    following actions:
                                ``(i) Issue a national coverage
                            determination, with or without
                            limitations.
                                ``(ii) Issue a national noncoverage
                            determination.
                                ``(iii) Issue a determination that
                            no national coverage or noncoverage
                            determination is appropriate as of the
                            end of such 90-day period with respect
                            to national coverage of such items or
                            services.
                                ``(iv) Issue a notice that states
                            that the Secretary has not completed a
                            review of the request for a national
                            coverage determination and that
                            includes an identification of the
                            remaining steps in the Secretary's
                            review process and a deadline by which
                            the Secretary will complete the review
                            and take an action described in
                            subclause (I), (II), or (III).
                        ``(B) Deemed action by the secretary.--In
                    the case of an action described in clause
                    (i)(IV), if the Secretary fails to take an
                    action referred to in such clause by the
                    deadline specified by the Secretary under such
                    clause, then the Secretary is deemed to have
                    taken an action described in clause (i)(III) as
                    of the deadline.
                        ``(C) Explanation of determination.--When
                    issuing a determination under clause (i), the
                    Secretary shall include an explanation of the
                    basis for the determination. An action taken
                    under clause (i) (other than subclause (IV)) is
                    deemed to be a national coverage determination
                    for purposes of review under subparagraph (A).
                ``(5) Standing.--An action under this subsection
            seeking review of a national coverage determination or
            local coverage determination may be initiated only by
            individuals entitled to benefits under part A, or
            enrolled under part B, or both, who are in need of the
            items or services that are the subject of the coverage
            determination.
                ``(6) Publication on the internet of decisions of
            hearings of the secretary.--Each decision of a hearing
            by the Secretary with respect to a national coverage
            determination shall be made public, and the Secretary
            shall publish each decision on the Medicare Internet
            site of the Department of Health and Human Services.
            The Secretary shall remove from such decision any
            information that would identify any individual,
            provider of services, or supplier.
                ``(7) Annual report on national coverage
            determinations.--
                        ``(A) In general.--Not later than December
                    1 of each year, beginning in 2001, the
                    Secretary shall submit to Congress a report
                    that sets forth a detailed compilation of the
                    actual time periods that were necessary to
                    complete and fully implement national coverage
                    determinations that were made in the previous
                    fiscal year for items, services, or medical
                    devices not previously covered as a benefit
                    under this title, including, with respect to
                    each new item, service, or medical device, a
                    statement of the time taken by the Secretary to
                    make and implement the necessary coverage,
                    coding, and payment determinations, including
                    the time taken to complete each significant
                    step in the process of making and implementing
                    such determinations.
                        ``(B) Publication of reports on the
                    internet.--The Secretary shall publish each
                    report submitted under clause (i) on the
                    medicare Internet site of the Department of
                    Health and Human Services.
                ``(8) Construction.--Nothing in this subsection
            shall be construed as permitting administrative or
            judicial review pursuant to this section insofar as
            such review is explicitly prohibited or restricted
            under another provision of law.''.
        (b) Establishment of a Process for Coverage
    Determinations.--Section 1862(a) (42 U.S.C. 1395y(a)) is
    amended by adding at the end the following new sentence: ``In
    making a national coverage determination (as defined in
    paragraph (1)(B) of section 1869(f)) the Secretary shall ensure
    that the public is afforded notice and opportunity to comment
    prior to implementation by the Secretary of the determination;
    meetings of advisory committees established under section
    1114(f) with respect to the determination are made on the
    record; in making the determination, the Secretary has
    considered applicable information (including clinical
    experience and medical, technical, and scientific evidence)
    with respect to the subject matter of the determination; and in
    the determination, provide a clear statement of the basis for
    the determination (including responses to comments received
    from the public), the assumptions underlying that basis, and
    make available to the public the data (other than proprietary
    data) considered in making the determination.''.
        (c) Improvements to the Medicare Advisory Committee
    Process.--Section 1114 (42 U.S.C. 1314) is amended by adding at
    the end the following new subsection:
        ``(i)(1) Any advisory committee appointed under subsection
    (f) to advise the Secretary on matters relating to the
    interpretation, application, or implementation of section
    1862(a)(1) shall assure the full participation of a nonvoting
    member in the deliberations of the advisory committee, and
    shall provide such nonvoting member access to all information
    and data made available to voting members of the advisory
    committee, other than information that--
                ``(A) is exempt from disclosure pursuant to
            subsection (a) of section 552 of title 5, United States
            Code, by reason of subsection (b)(4) of such section
            (relating to trade secrets); or
                ``(B) the Secretary determines would present a
            conflict of interest relating to such nonvoting member.
        ``(2) If an advisory committee described in paragraph (1)
    organizes into panels of experts according to types of items or
    services considered by the advisory committee, any such panel
    of experts may report any recommendation with respect to such
    items or services directly to the Secretary without the prior
    approval of the advisory committee or an executive committee
    thereof.''.
        (d) Effective Date.--The amendments made by this section
    shall apply with respect to--
                (1) a review of any national or local coverage
            determination filed,
                (2) a request to make such a determination made,
            and
                (3) a national coverage determination made,
    on or after October 1, 2001.

                Subtitle D--Improving Access to New Technologies

    SEC. 531. REIMBURSEMENT IMPROVEMENTS FOR NEW CLINICAL LABORATORY TESTS
                        AND DURABLE MEDICAL EQUIPMENT.

        (a) Payment Rule for New Laboratory Tests.--Section
    1833(h)(4)(B)(viii) (42 U.S.C. 1395l(h)(4)(B)(viii)) is amended
    by inserting before the period at the end the following: ``(or
    100 percent of such median in the case of a clinical diagnostic
    laboratory test performed on or after January 1, 2001, that the
    Secretary determines is a new test for which no limitation
    amount has previously been established under this
    subparagraph)''.
        (b) Establishment of Coding and Payment Procedures for New
    Clinical Diagnostic Laboratory Tests and Other Items on a Fee
    Schedule.--Not later than 1 year after the date of the
    enactment of this Act, the Secretary of Health and Human
    Services shall establish procedures for coding and payment
    determinations for the categories of new clinical diagnostic
    laboratory tests and new durable medical equipment under part B
    of title XVIII of the Social Security Act that permit public
    consultation in a manner consistent with the procedures
    established for implementing coding modifications for ICD-9-CM.
        (c) Report on Procedures Used for Advanced, Improved
    Technologies.--Not later than 1 year after the date of the
    enactment of this Act, the Secretary of Health and Human
    Services shall submit to Congress a report that identifies the
    specific procedures used by the Secretary under part B of title
    XVIII of the Social Security Act to adjust payments for
    clinical diagnostic laboratory tests and durable medical
    equipment which are classified to existing codes where, because
    of an advance in technology with respect to the test or
    equipment, there has been a significant increase or decrease in
    the resources used in the test or in the manufacture of the
    equipment, and there has been a significant improvement in the
    performance of the test or equipment. The report shall include
    such recommendations for changes in law as may be necessary to
    assure fair and appropriate payment levels under such part for
    such improved tests and equipment as reflects increased costs
    necessary to produce improved results.

    SEC. 532. RETENTION OF HCPCS LEVEL III CODES.

        (a) In General.--The Secretary of Health and Human Services
    shall maintain and continue the use of level III codes of the
    HCPCS coding system (as such system was in effect on August 16,
    2000) through December 31, 2003, and shall make such codes
    available to the public.
        (b) Definition.--For purposes of this section, the term
    ``HCPCS Level III codes'' means the alphanumeric codes for
    local use under the Health Care Financing Administration Common
    Procedure Coding System (HCPCS).

    SEC. 533. RECOGNITION OF NEW MEDICAL TECHNOLOGIES UNDER INPATIENT
                        HOSPITAL PPS.

        (a) Expediting Recognition of New Technologies Into
    Inpatient PPS Coding System.--
                (1) Report.--Not later than April 1, 2001, the
            Secretary of Health and Human Services shall submit to
            Congress a report on methods of expeditiously
            incorporating new medical services and technologies
            into the clinical coding system used with respect to
            payment for inpatient hospital services furnished under
            the medicare program under title XVIII of the Social
            Security Act, together with a detailed description of
            the Secretary's preferred methods to achieve this
            purpose.
                (2) Implementation.--Not later than October 1,
            2001, the Secretary shall implement the preferred
            methods described in the report transmitted pursuant to
            paragraph (1).
        (b) Ensuring Appropriate Payments for Hospitals
    Incorporating New Medical Services and Technologies.--
                (1) Establishment of mechanism.--Section 1886(d)(5)
            (42 U.S.C. 1395ww(d)(5)) is amended by adding at the
            end the following new subparagraphs:
        ``(K)(i) Effective for discharges beginning on or after
    October 1, 2001, the Secretary shall establish a mechanism to
    recognize the costs of new medical services and technologies
    under the payment system established under this subsection.
    Such mechanism shall be established after notice and
    opportunity for public comment (in the publications required by
    subsection (e)(5) for a fiscal year or otherwise).
        ``(ii) The mechanism established pursuant to clause (i)
    shall--
                ``(I) apply to a new medical service or technology
            if, based on the estimated costs incurred with respect
            to discharges involving such service or technology, the
            DRG prospective payment rate otherwise applicable to
            such discharges under this subsection is inadequate;
                ``(II) provide for the collection of data with
            respect to the costs of a new medical service or
            technology described in subclause (I) for a period of
            not less than two years and not more than three years
            beginning on the date on which an inpatient hospital
            code is issued with respect to the service or
            technology;
                ``(III) subject to paragraph (4)(C)(iii), provide
            for additional payment to be made under this subsection
            with respect to discharges involving a new medical
            service or technology described in subclause (I) that
            occur during the period described in subclause (II) in
            an amount that adequately reflects the estimated
            average cost of such service or technology; and
                ``(IV) provide that discharges involving such a
            service or technology that occur after the close of the
            period described in subclause (II) will be classified
            within a new or existing diagnosis-related group with a
            weighting factor under paragraph (4)(B) that is derived
            from cost data collected with respect to discharges
            occurring during such period.
        ``(iii) For purposes of clause (ii)(II), the term
    `inpatient hospital code' means any code that is used with
    respect to inpatient hospital services for which payment may be
    made under this subsection and includes an alphanumeric code
    issued under the International Classification of Diseases, 9th
    Revision, Clinical Modification (`ICD-9-CM') and its subsequent
    revisions.
        ``(iv) For purposes of clause (ii)(III), the term
    `additional payment' means, with respect to a discharge for a
    new medical service or technology described in clause (ii)(I),
    an amount that exceeds the prospective payment rate otherwise
    applicable under this subsection to discharges involving such
    service or technology that would be made but for this
    subparagraph.
        ``(v) The requirement under clause (ii)(III) for an
    additional payment may be satisfied by means of a new-
    technology group (described in subparagraph (L)), an add-on
    payment, a payment adjustment, or any other similar mechanism
    for increasing the amount otherwise payable with respect to a
    discharge under this subsection. The Secretary may not
    establish a separate fee schedule for such additional payment
    for such services and technologies, by utilizing a methodology
    established under subsection (a) or (h) of section 1834 to
    determine the amount of such additional payment, or by other
    similar mechanisms or methodologies.
        ``(vi) For purposes of this subparagraph and subparagraph
    (L), a medical service or technology will be considered a `new
    medical service or technology' if the service or technology
    meets criteria established by the Secretary after notice and an
    opportunity for public comment.
        ``(L)(i) In establishing the mechanism under subparagraph
    (K), the Secretary may establish new-technology groups into
    which a new medical service or technology will be classified
    if, based on the estimated average costs incurred with respect
    to discharges involving such service or technology, the DRG
    prospective payment rate otherwise applicable to such
    discharges under this subsection is inadequate.
        ``(ii) Such groups--
                ``(I) shall not be based on the costs associated
            with a specific new medical service or technology; but
                ``(II) shall, in combination with the applicable
            standardized amounts and the weighting factors assigned
            to such groups under paragraph (4)(B), reflect such
            cost cohorts as the Secretary determines are
            appropriate for all new medical services and
            technologies that are likely to be provided as
            inpatient hospital services in a fiscal year.
        ``(iii) The methodology for classifying specific hospital
    discharges within a diagnosis-related group under paragraph
    (4)(A) or a new-technology group shall provide that a specific
    hospital discharge may not be classified within both a
    diagnosis-related group and a new-technology group.''.
                (2) Prior consultation.--The Secretary of Health
            and Human Services shall consult with groups
            representing hospitals, physicians, and manufacturers
            of new medical technologies before publishing the
            notice of proposed rulemaking required by section
            1886(d)(5)(K)(i) of the Social Security Act (as added
            by paragraph (1)).
                (3) Conforming amendment.--Section 1886(d)(4)(C)(i)
            (42 U.S.C. 1395ww(d)(4)(C)(i)) is amended by striking
            ``technology,'' and inserting ``technology (including a
            new medical service or technology under paragraph
            (5)(K)),''.

                          Subtitle E--Other Provisions

    SEC. 541. INCREASE IN REIMBURSEMENT FOR BAD DEBT.

        Section 1861(v)(1)(T) (42 U.S.C. 1395x(v)(1)(T)) is
    amended--
                (1) in clause (ii), by striking ``and'' at the end;
                (2) in clause (iii)--
                        (A) by striking ``during a subsequent
                    fiscal year'' and inserting ``during fiscal
                    year 2000''; and
                        (B) by striking the period at the end and
                    inserting ``, and''; and
                (3) by adding at the end the following new clause:
                ``(iv) for cost reporting periods beginning during
            a subsequent fiscal year, by 30 percent of such amount
            otherwise allowable.''.

    SEC. 542. TREATMENT OF CERTAIN PHYSICIAN PATHOLOGY SERVICES UNDER
                        MEDICARE.

        (a) In General.--When an independent laboratory furnishes
    the technical component of a physician pathology service to a
    fee-for-service medicare beneficiary who is an inpatient or
    outpatient of a covered hospital, the Secretary of Health and
    Human Services shall treat such component as a service for
    which payment shall be made to the laboratory under section
    1848 of the Social Security Act (42 U.S.C. 1395w-4) and not as
    an inpatient hospital service for which payment is made to the
    hospital under section 1886(d) of such Act (42 U.S.C.
    1395ww(d)) or as an outpatient hospital service for which
    payment is made to the hospital under section 1833(t) of such
    Act (42 U.S.C. 1395l(t)).
        (b) Definitions.--For purposes of this section:
                (1) Covered hospital.--The term ``covered
            hospital'' means, with respect to an inpatient or an
            outpatient, a hospital that had an arrangement with an
            independent laboratory that was in effect as of July
            22, 1999, under which a laboratory furnished the
            technical component of physician pathology services to
            fee-for-service medicare beneficiaries who were
            hospital inpatients or outpatients, respectively, and
            submitted claims for payment for such component to a
            medicare carrier (that has a contract with the
            Secretary under section 1842 of the Social Security
            Act, 42 U.S.C. 1395u) and not to such hospital.
                (2) Fee-for-service medicare beneficiary.--The term
            ``fee-for-service medicare beneficiary'' means an
            individual who--
                        (A) is entitled to benefits under part A,
                    or enrolled under part B, or both, of such
                    title; and
                        (B) is not enrolled in any of the
                    following:
                                (i) A Medicare+Choice plan under
                            part C of such title.
                                (ii) A plan offered by an eligible
                            organization under section 1876 of such
                            Act (42 U.S.C. 1395mm).
                                (iii) A program of all-inclusive
                            care for the elderly (PACE) under
                            section 1894 of such Act (42 U.S.C.
                            1395eee).
                                (iv) A social health maintenance
                            organization (SHMO) demonstration
                            project established under section
                            4018(b) of the Omnibus Budget
                            Reconciliation Act of 1987 (Public Law
                            100-203).
        (c) Effective Date.--This section shall apply to services
    furnished during the 2-year period beginning on January 1,
    2001.
        (d) GAO Report.--
                (1) Study.--The Comptroller General of the United
            States shall conduct a study of the effects of the
            previous provisions of this section on hospitals and
            laboratories and access of fee-for-service medicare
            beneficiaries to the technical component of physician
            pathology services.
                (2) Report.--Not later than April 1, 2002, the
            Comptroller General shall submit to Congress a report
            on such study. The report shall include recommendations
            about whether such provisions should be extended after
            the end of the period specified in subsection (c) for
            either or both inpatient and outpatient hospital
            services, and whether the provisions should be extended
            to other hospitals.

    SEC. 543. EXTENSION OF ADVISORY OPINION AUTHORITY.

        Section 1128D(b)(6) (42 U.S.C. 1320a-7d(b)(6)) is amended
    by striking ``and before the date which is 4 years after such
    date of enactment''.

    SEC. 544. CHANGE IN ANNUAL MEDPAC REPORTING.

        (a) Revision of Deadlines for Submission of Reports.--
                (1) In general.--Section 1805(b)(1)(D) (42 U.S.C.
            1395b-6(b)(1)(D)) is amended by striking ``June 1 of
            each year (beginning with 1998),'' and inserting ``June
            15 of each year,''.
                (2) Effective date.--The amendment made by
            paragraph (1) shall apply beginning with 2001.
        (b) Requirement for on the Record Votes on
    Recommendations.--Section 1805(b) (42 U.S.C. 1395b-6(b)) is
    amended by adding at the end the following new paragraph:
                ``(7) Voting and reporting requirements.--With
            respect to each recommendation contained in a report
            submitted under paragraph (1), each member of the
            Commission shall vote on the recommendation, and the
            Commission shall include, by member, the results of
            that vote in the report containing the
            recommendation.''.

    SEC. 545. DEVELOPMENT OF PATIENT ASSESSMENT INSTRUMENTS.

        (a) Development.--
                (1) In general.--Not later than January 1, 2005,
            the Secretary of Health and Human Services shall submit
            to the Committee on Ways and Means and the Committee on
            Commerce of the House of Representatives and the
            Committee on Finance of the Senate a report on the
            development of standard instruments for the assessment
            of the health and functional status of patients, for
            whom items and services described in subsection (b) are
            furnished, and include in the report a recommendation
            on the use of such standard instruments for payment
            purposes.
                (2) Design for comparison of common elements.--The
            Secretary shall design such standard instruments in a
            manner such that--
                        (A) elements that are common to the items
                    and services described in subsection (b) may be
                    readily comparable and are statistically
                    compatible;
                        (B) only elements necessary to meet program
                    objectives are collected; and
                        (C) the standard instruments supersede any
                    other assessment instrument used before that
                    date.
                (3) Consultation.--In developing an assessment
            instrument under paragraph (1), the Secretary shall
            consult with the Medicare Payment Advisory Commission,
            the Agency for Healthcare Research and Quality, and
            qualified organizations representing providers of
            services and suppliers under title XVIII.
        (b) Description of Services.--For purposes of subsection
    (a), items and services described in this subsection are those
    items and services furnished to individuals entitled to
    benefits under part A, or enrolled under part B, or both of
    title XVIII of the Social Security Act for which payment is
    made under such title, and include the following:
                (1) Inpatient and outpatient hospital services.
                (2) Inpatient and outpatient rehabilitation
            services.
                (3) Covered skilled nursing facility services.
                (4) Home health services.
                (5) Physical or occupational therapy or speech-
            language pathology services.
                (6) Items and services furnished to such
            individuals determined to have end stage renal disease.
                (7) Partial hospitalization services and other
            mental health services.
                (8) Any other service for which payment is made
            under such title as the Secretary determines to be
            appropriate.

    SEC. 546. GAO REPORT ON IMPACT OF THE EMERGENCY MEDICAL TREATMENT AND
                        ACTIVE LABOR ACT (EMTALA) ON HOSPITAL EMERGENCY
                        DEPARTMENTS.

        (a) Report.--The Comptroller General of the United States
    shall submit a report to the Committee on Commerce and the
    Committee on Ways and Means of the House of Representatives and
    the Committee on Finance of the Senate by May 1, 2001, on the
    effect of the Emergency Medical Treatment and Active Labor Act
    on hospitals, emergency physicians, and physicians covering
    emergency department call throughout the United States.
        (b) Report Requirements.--The report should evaluate--
                (1) the extent to which hospitals, emergency
            physicians, and physicians covering emergency
            department call provide uncompensated services in
            relation to the requirements of EMTALA;
                (2) the extent to which the regulatory requirements
            and enforcement of EMTALA have expanded beyond the
            legislation's original intent;
                (3) estimates for the total dollar amount of
            EMTALA-related care uncompensated costs to emergency
            physicians, physicians covering emergency department
            call, hospital emergency departments, and other
            hospital services;
                (4) the extent to which different portions of the
            United States may be experiencing different levels of
            uncompensated EMTALA-related care;
                (5) the extent to which EMTALA would be classified
            as an unfunded mandate if it were enacted today;
                (6) the extent to which States have programs to
            provide financial support for such uncompensated care;
                (7) possible sources of funds, including medicare
            hospital bad debt accounts, that are available to
            hospitals to assist with the cost of such uncompensated
            care; and
                (8) the financial strain that illegal immigration
            populations, the uninsured, and the underinsured place
            on hospital emergency departments, other hospital
            services, emergency physicians, and physicians covering
            emergency department call.
        (c) Definition.--In this section, the terms ``Emergency
    Medical Treatment and Active Labor Act'' and ``EMTALA'' mean
    section 1867 of the Social Security Act (42 U.S.C. 1395dd).

    SEC. 547. CLARIFICATION OF APPLICATION OF TEMPORARY PAYMENT INCREASES
                        FOR 2001.

        (a) Inpatient Hospital Services.--The payment increase
    provided under the following sections shall not apply to
    discharges occurring after fiscal year 2001 and shall not be
    taken into account in calculating the payment amounts
    applicable for discharges occurring after such fiscal year:
                (1) Section 301(b)(2)(A) (relating to acute care
            hospital payment update).
                (2) Section 302(b) (relating to IME percentage
            adjustment).
                (3) Section 303(b)(2) (relating to DSH payments).
        (b) Skilled Nursing Facility Services.--The payment
    increase provided under section 311(b)(2) (relating to covered
    skilled nursing facility services) shall not apply to services
    furnished after fiscal year 2001 and shall not be taken into
    account in calculating the payment amounts applicable for
    services furnished after such fiscal year.
        (c) Home Health Services.--
                (1) Transitional allowance for full marketbasket
            increase.--The payment increase provided under section
            502(b)(1)(B) shall not apply to episodes and visits
            ending after fiscal year 2001 and shall not be taken
            into account in calculating the payment amounts
            applicable for subsequent episodes and visits.
                (2) Temporary increase for rural home health
            services.--The payment increase provided under section
            508(a) for the period beginning on April 1, 2001, and
            ending on September 30, 2002, shall not apply to
            episodes and visits ending after such period, and shall
            not be taken into account in calculating the payment
            amounts applicable for episodes and visits occurring
            after such period.
        (d) Calendar Year 2001 Provisions.--The payment increase
    provided under the following sections shall not apply after
    calendar year 2001 and shall not be taken into account in
    calculating the payment amounts applicable for items and
    services furnished after such year:
                (1) Section 401(c)(2) (relating to covered OPD
            services).
                (2) Section 422(e)(2) (relating to renal dialysis
            services paid for on a composite rate basis).
                (3) Section 423(a)(2)(B) (relating to ambulance
            services).
                (4) Section 425(b)(2) (relating to durable medical
            equipment).
                (5) Section 426(b)(2) (relating to prosthetic
            devices and orthotics and prosthetics).

     TITLE VI--PROVISIONS RELATING TO PART C (MEDICARE+CHOICE PROGRAM) AND
                     OTHER MEDICARE MANAGED CARE PROVISIONS

                  Subtitle A--Medicare+Choice Payment Reforms

    SEC. 601. INCREASE IN MINIMUM PAYMENT AMOUNT.

        (a) In General.--Section 1853(c)(1)(B) (42 U.S.C. 1395w-
    23(c)(1)(B)) is amended--
                (1) by redesignating clause (ii) as clause (iv);
                (2) by inserting after clause (i) the following new
            clauses:
                                ``(ii) For 1999 and 2000, the
                            minimum amount determined under clause
                            (i) or this clause, respectively, for
                            the preceding year, increased by the
                            national per capita Medicare+Choice
                            growth percentage described in
                            paragraph (6)(A) applicable to 1999 or
                            2000, respectively.
                                ``(iii)(I) Subject to subclause
                            (II), for 2001, for any area in a
                            Metropolitan Statistical Area with a
                            population of more than 250,000, $525,
                            and for any other area $475.
                                ``(II) In the case of an area
                            outside the 50 States and the District
                            of Columbia, the amount specified in
                            this clause shall not exceed 120
                            percent of the amount determined under
                            clause (ii) for such area for 2000.'';
                            and
                (3) in clause (iv), as so redesignated--
                        (A) by striking ``a succeeding year'' and
                    inserting ``2002 and each succeeding year'';
                    and
                        (B) by striking ``clause (i)'' and
                    inserting ``clause (iii)''.
        (b) Special Rule for January and February of 2001.--
                (1) In general.--Notwithstanding the amendments
            made by subsection (a), for purposes of making payments
            under section 1853 of the Social Security Act (42
            U.S.C. 1395w-23) for January and February 2001, the
            annual Medicare+Choice capitation rate for a
            Medicare+Choice payment area shall be calculated, and
            the excess amount under section 1854(f)(1)(B) of such
            Act (42 U.S.C. 1395w-24(f)(1)(B)) shall be determined,
            as if such amendments had not been enacted.
                (2) Construction.--Paragraph (1) shall not be taken
            into account in computing such capitation rate for 2002
            and subsequent years.

    SEC. 602. INCREASE IN MINIMUM PERCENTAGE INCREASE.

        (a) In General.--Section 1853(c)(1)(C) (42 U.S.C. 1395w-
    23(c)(1)(C)) is amended--
                (1) by redesignating clause (ii) as clause (iv);
                (2) by inserting after clause (i) the following new
            clauses:
                                ``(ii) For 1999 and 2000, 102
                            percent of the annual Medicare+Choice
                            capitation rate under this paragraph
                            for the area for the previous year.
                                ``(iii) For 2001, 103 percent of
                            the annual Medicare+Choice capitation
                            rate under this paragraph for the area
                            for 2000.''; and
                (3) in clause (iv), as so redesignated, by striking
            ``a subsequent year'' and inserting ``2002 and each
            succeeding year''.
        (b) Application of Special Rule for January and February of
    2001.--The provisions of section 601(b) shall apply with
    respect to the amendments made by subsection (a) in the same
    manner as they apply to the amendments made by section 601(a).

    SEC. 603. PHASE-IN OF RISK ADJUSTMENT.

        Section 1853(a)(3)(C) (42 U.S.C. 1395w-23(a)(3)(C)) is
    amended--
                (1) in clause (ii)--
                        (A) in subclause (I), by striking ``and
                    2001'' and inserting ``and each succeeding year
                    through 2003'' and by striking ``and'' at the
                    end; and
                        (B) by striking subclause (II) and
                    inserting the following new subclauses:
                                        ``(II) 30 percent of such
                                    capitation rate in 2004;
                                        ``(III) 50 percent of such
                                    capitation rate in 2005;
                                        ``(IV) 75 percent of such
                                    capitation rate in 2006; and
                                        ``(V) 100 percent of such
                                    capitation rate in 2007 and
                                    succeeding years.''; and
                (2) by adding at the end the following new clause:
                                ``(iii) Data for risk adjustment
                            methodology.--Such risk adjustment
                            methodology for 2004 and each
                            succeeding year, shall be based on data
                            from inpatient hospital and ambulatory
                            settings.''.

    SEC. 604. TRANSITION TO REVISED MEDICARE+CHOICE PAYMENT RATES.

        (a) Announcement of Revised Medicare+Choice Payment
    Rates.--Within 2 weeks after the date of the enactment of this
    Act, the Secretary of Health and Human Services shall
    determine, and shall announce (in a manner intended to provide
    notice to interested parties) Medicare+Choice capitation rates
    under section 1853 of the Social Security Act (42 U.S.C. 1395w-
    23) for 2001, revised in accordance with the provisions of this
    Act.
        (b) Reentry Into Program Permitted for Medicare+Choice
    Programs.--A Medicare+Choice organization that provided notice
    to the Secretary of Health and Human Services before the date
    of the enactment of this Act that it was terminating its
    contract under part C of title XVIII of the Social Security Act
    or was reducing the service area of a Medicare+Choice plan
    offered under such part shall be permitted to continue
    participation under such part, or to maintain the service area
    of such plan, for 2001 if it submits the Secretary with the
    information described in section 1854(a)(1) of the Social
    Security Act (42 U.S.C. 1395w-24(a)(1)) within 2 weeks after
    the date revised rates are announced by the Secretary under
    subsection (a).
        (c) Revised Submission of Proposed Premiums and Related
    Information.--If--
                (1) a Medicare+Choice organization provided notice
            to the Secretary of Health and Human Services as of
            July 3, 2000, that it was renewing its contract under
            part C of title XVIII of the Social Security Act for
            all or part of the service area or areas served under
            its current contract, and
                (2) any part of the service area or areas addressed
            in such notice includes a payment area for which the
            Medicare+Choice capitation rate under section 1853(c)
            of such Act (42 U.S.C. 1395w-23(c)) for 2001, as
            determined under subsection (a), is higher than the
            rate previously determined for such year,
    such organization shall revise its submission of the
    information described in section 1854(a)(1) of the Social
    Security Act (42 U.S.C. 1395w-24(a)(1)), and shall submit such
    revised information to the Secretary, within 2 weeks after the
    date revised rates are announced by the Secretary under
    subsection (a). In making such submission, the organization may
    only reduce beneficiary premiums, reduce beneficiary cost-
    sharing, enhance benefits, utilize the stabilization fund
    described in section 1854(f)(2) of such Act (42 U.S.C. 1395w-
    24(f)(2)), or stabilize or enhance beneficiary access to
    providers (so long as such stabilization or enhancement does
    not result in increased beneficiary premiums, increased
    beneficiary cost-sharing, or reduced benefits).
        (d) Waiver of Limits on Stabilization Fund.--Any regulatory
    provision that limits the proportion of the excess amount that
    can be withheld in such stabilization fund for a contract
    period shall not apply with respect to submissions described in
    subsections (b) and (c).
        (e) Disregard of New Rate Announcement in Applying Pass-
    Through for New National Coverage Determinations.--For purposes
    of applying section 1852(a)(5) of the Social Security Act (42
    U.S.C. 1395w-22(a)(5)), the announcement of revised rates under
    subsection (a) shall not be treated as an announcement under
    section 1853(b) of such Act (42 U.S.C. 1395w-23(b)).

    SEC. 605. REVISION OF PAYMENT RATES FOR ESRD PATIENTS ENROLLED IN
                        MEDICARE+CHOICE PLANS.

        (a) In General.--Section 1853(a)(1)(B) (42 U.S.C. 1395w-
    23(a)(1)(B)) is amended by adding at the end the following:
    ``In establishing such rates, the Secretary shall provide for
    appropriate adjustments to increase each rate to reflect the
    demonstration rate (including the risk adjustment methodology
    associated with such rate) of the social health maintenance
    organization end-stage renal disease capitation demonstrations
    (established by section 2355 of the Deficit Reduction Act of
    1984, as amended by section 13567(b) of the Omnibus Budget
    Reconciliation Act of 1993), and shall compute such rates by
    taking into account such factors as renal treatment modality,
    age, and the underlying cause of the end-stage renal
    disease.''.
        (b) Effective Date.--The amendment made by subsection (a)
    shall apply to payments for months beginning with January 2002.
        (c) Publication.--Not later than 6 months after the date of
    the enactment of this Act, the Secretary of Health and Human
    Services shall publish for public comment a description of the
    appropriate adjustments described in the last sentence of
    section 1853(a)(1)(B) of the Social Security Act (42 U.S.C.
    1395w-23(a)(1)(B)), as added by subsection (a). The Secretary
    shall publish such adjustments in final form by not later than
    July 1, 2001, so that the amendment made by subsection (a) is
    implemented on a timely basis consistent with subsection (b).

    SEC. 606. PERMITTING PREMIUM REDUCTIONS AS ADDITIONAL BENEFITS UNDER
                        MEDICARE+CHOICE PLANS.

        (a) In General.--
                (1) Authorization of part b premium reductions.--
            Section 1854(f)(1) (42 U.S.C. 1395w-24(f)(1)) is
            amended--
                        (A) by redesignating subparagraph (E) as
                    subparagraph (F); and
                        (B) by inserting after subparagraph (D) the
                    following new subparagraph:
                        ``(E) Premium reductions.--
                                ``(i) In general.--Subject to
                            clause (ii), as part of providing any
                            additional benefits required under
                            subparagraph (A), a Medicare+Choice
                            organization may elect a reduction in
                            its payments under section
                            1853(a)(1)(A) with respect to a
                            Medicare+Choice plan and the Secretary
                            shall apply such reduction to reduce
                            the premium under section 1839 of each
                            enrollee in such plan as provided in
                            section 1840(i).
                                ``(ii) Amount of reduction.--The
                            amount of the reduction under clause
                            (i) with respect to any enrollee in a
                            Medicare+Choice plan--
                                        ``(I) may not exceed 125
                                    percent of the premium
                                    described under section
                                    1839(a)(3); and
                                        ``(II) shall apply
                                    uniformly to each enrollee of
                                    the Medicare+Choice plan to
                                    which such reduction
                                    applies.''.
                (2) Conforming amendments.--
                        (A) Adjustment of payments to
                    medicare+choice organizations.--Section
                    1853(a)(1)(A) (42 U.S.C. 1395w-23(a)(1)(A)) is
                    amended by inserting ``reduced by the amount of
                    any reduction elected under section
                    1854(f)(1)(E) and'' after ``for that area,''.
                        (B) Adjustment and payment of part b
                    premiums.--
                                (i) Adjustment of premiums.--
                            Section 1839(a)(2) (42 U.S.C.
                            1395r(a)(2)) is amended by striking
                            ``shall'' and all that follows and
                            inserting the following: ``shall be the
                            amount determined under paragraph (3),
                            adjusted as required in accordance with
                            subsections (b), (c), and (f), and to
                            reflect 80 percent of any reduction
                            elected under section 1854(f)(1)(E).''.
                                (ii) Payment of premiums.--Section
                            1840 (42 U.S.C. 1395s) is amended by
                            adding at the end the following new
                            subsection:
        ``(i) In the case of an individual enrolled in a
    Medicare+Choice plan, the Secretary shall provide for necessary
    adjustments of the monthly beneficiary premium to reflect 80
    percent of any reduction elected under section 1854(f)(1)(E).
    To the extent to which the Secretary determines that such an
    adjustment is appropriate, with the concurrence of any agency
    responsible for the administration of such benefits, such
    premium adjustment may be provided directly, as an adjustment
    to any social security, railroad retirement, or civil service
    retirement benefits, or, in the case of an individual who
    receives medical assistance under title XIX for medicare costs
    described in section 1905(p)(3)(A)(ii), as an adjustment to the
    amount otherwise owed by the State for such medical
    assistance.''.
                        (C) Information comparing plan premiums
                    under part c.--Section 1851(d)(4)(B) (42 U.S.C.
                    1395w-21(d)(4)(B)) is amended--
                                (i) by striking ``Premiums.--The''
                            and inserting ``Premiums.--
                                ``(i) In general.--The''; and
                                (ii) by adding at the end the
                            following new clause:
                                ``(ii) Reductions.--The reduction
                            in part B premiums, if any.''.
                        (D) Treatment of reduction for purposes of
                    determining government contribution under part
                    b.--Section 1844 (42 U.S.C. 1395w) is amended
                    by adding at the end the following new
                    subsection:
        ``(c) The Secretary shall determine the Government
    contribution under subparagraphs (A) and (B) of subsection
    (a)(1) without regard to any premium reduction resulting from
    an election under section 1854(f)(1)(E).''.
        (b) Effective Date.--The amendments made by subsection (a)
    shall apply to years beginning with 2003.

    SEC. 607. FULL IMPLEMENTATION OF RISK ADJUSTMENT FOR CONGESTIVE HEART
                        FAILURE ENROLLEES FOR 2001.

        (a) In General.--Section 1853(a)(3)(C) (42 U.S.C. 1395w-
    23(a)(3)(C)) is amended--
                (1) in clause (ii), by striking ``Such risk
            adjustment'' and inserting ``Except as provided in
            clause (iii), such risk adjustment''; and
                (2) by adding at the end the following new clause:
                                ``(iii) Full implementation of risk
                            adjustment for congestive heart failure
                            enrollees for 2001.--
                                        ``(I) Exemption from phase-
                                    in.--Subject to subclause (II),
                                    the Secretary shall fully
                                    implement the risk adjustment
                                    methodology described in clause
                                    (i) with respect to each
                                    individual who has had a
                                    qualifying congestive heart
                                    failure inpatient diagnosis (as
                                    determined by the Secretary
                                    under such risk adjustment
                                    methodology) during the period
                                    beginning on July 1, 1999, and
                                    ending on June 30, 2000, and
                                    who is enrolled in a
                                    coordinated care plan that is
                                    the only coordinated care plan
                                    offered on January 1, 2001, in
                                    the service area of the
                                    individual.
                                        ``(II) Period of
                                    application.--Subclause (I)
                                    shall only apply during the 1-
                                    year period beginning on
                                    January 1, 2001.''.
        (b) Exclusion From Determination of the Budget Neutrality
    Factor.--Section 1853(c)(5) (42 U.S.C. 1395w-23(c)(5)) is
    amended by striking ``subsection (i)'' and inserting
    ``subsections (a)(3)(C)(iii) and (i)''.

    SEC. 608. EXPANSION OF APPLICATION OF MEDICARE+CHOICE NEW ENTRY BONUS.

        (a) In General.--Section 1853(i)(1) (42 U.S.C. 1395w-
    23(i)(1)) is amended in the matter preceding subparagraph (A)
    by inserting ``, or filed notice with the Secretary as of
    October 3, 2000, that they will not be offering such a plan as
    of January 1, 2001'' after ``January 1, 2000''.
        (b) Effective Date.--The amendment made by subsection (a)
    shall apply as if included in the enactment of BBRA.

    SEC. 609. REPORT ON INCLUSION OF CERTAIN COSTS OF THE DEPARTMENT OF
                        VETERANS AFFAIRS AND MILITARY FACILITY SERVICES IN
                        CALCULATING MEDICARE+CHOICE PAYMENT RATES.

        The Secretary of Health and Human Services shall report to
    Congress by not later than January 1, 2003, on a method to
    phase-in the costs of military facility services furnished by
    the Department of Veterans Affairs, and the costs of military
    facility services furnished by the Department of Defense, to
    medicare-eligible beneficiaries in the calculation of an area's
    Medicare+Choice capitation payment. Such report shall include
    on a county-by-county basis--
                (1) the actual or estimated cost of such services
            to medicare-eligible beneficiaries;
                (2) the change in Medicare+Choice capitation
            payment rates if such costs are included in the
            calculation of payment rates;
                (3) one or more proposals for the implementation of
            payment adjustments to Medicare+Choice plans in
            counties where the payment rate has been affected due
            to the failure to calculate the cost of such services
            to medicare-eligible beneficiaries; and
                (4) a system to ensure that when a Medicare+Choice
            enrollee receives covered services through a facility
            of the Department of Veterans Affairs or the Department
            of Defense there is an appropriate payment recovery to
            the medicare program under title XVIII of the Social
            Security Act.

                   Subtitle B--Other Medicare+Choice Reforms

    SEC. 611. PAYMENT OF ADDITIONAL AMOUNTS FOR NEW BENEFITS COVERED DURING
                        A CONTRACT TERM.

        (a) In General.--Section 1853(c)(7) (42 U.S.C. 1395w-
    23(c)(7)) is amended to read as follows:
                ``(7) Adjustment for national coverage
            determinations and legislative changes in benefits.--If
            the Secretary makes a determination with respect to
            coverage under this title or there is a change in
            benefits required to be provided under this part that
            the Secretary projects will result in a significant
            increase in the costs to Medicare+Choice of providing
            benefits under contracts under this part (for periods
            after any period described in section 1852(a)(5)), the
            Secretary shall adjust appropriately the payments to
            such organizations under this part. Such projection and
            adjustment shall be based on an analysis by the Chief
            Actuary of the Health Care Financing Administration of
            the actuarial costs associated with the new
            benefits.''.
        (b) Conforming Amendment.--Section 1852(a)(5) (42 U.S.C.
    1395w-22(a)(5)) is amended--
                (1) in the heading, by inserting ``and legislative
            changes in benefits'' after ``National coverage
            determinations'';
                (2) by inserting ``or legislative change in
            benefits required to be provided under this part''
            after ``national coverage determination'';
                (3) in subparagraph (A), by inserting ``or
            legislative change in benefits'' after ``such
            determination'';
                (4) in subparagraph (B), by inserting ``or
            legislative change'' after ``if such coverage
            determination''; and
                (5) by adding at the end the following:
            ``The projection under the previous sentence shall be
            based on an analysis by the Chief Actuary of the Health
            Care Financing Administration of the actuarial costs
            associated with the coverage determination or
            legislative change in benefits.''.
        (c) Effective Date.--The amendments made by this section
    are effective on the date of the enactment of this Act and
    shall apply to national coverage determinations and legislative
    changes in benefits occurring on or after such date.

    SEC. 612. RESTRICTION ON IMPLEMENTATION OF SIGNIFICANT NEW REGULATORY
                        REQUIREMENTS MIDYEAR.

        (a) In General.--Section 1856(b) (42 U.S.C. 1395w-26(b)) is
    amended by adding at the end the following new paragraph:
                ``(4) Prohibition of midyear implementation of
            significant new regulatory requirements.--The Secretary
            may not implement, other than at the beginning of a
            calendar year, regulations under this section that
            impose new, significant regulatory requirements on a
            Medicare+Choice organization or plan.''.
        (b) Effective Date.--The amendment made by subsection (a)
    takes effect on the date of the enactment of this Act.

    SEC. 613. TIMELY APPROVAL OF MARKETING MATERIAL THAT FOLLOWS MODEL
                        MARKETING LANGUAGE.

        (a) In General.--Section 1851(h) (42 U.S.C. 1395w-21(h)) is
    amended--
                (1) in paragraph (1)(A), by inserting ``(or 10 days
            in the case described in paragraph (5))'' after ``45
            days''; and
                (2) by adding at the end the following new
            paragraph:
                ``(5) Special treatment of marketing material
            following model marketing language.--In the case of
            marketing material of an organization that uses,
            without modification, proposed model language specified
            by the Secretary, the period specified in paragraph
            (1)(A) shall be reduced from 45 days to 10 days.''.
        (b) Effective Date.--The amendments made by subsection (a)
    shall apply to marketing material submitted on or after January
    1, 2001.

    SEC. 614. AVOIDING DUPLICATIVE REGULATION.

        (a) In General.--Section 1856(b)(3)(B) (42 U.S.C. 1395w-
    26(b)(3)(B)) is amended--
                (1) in clause (i), by inserting ``(including cost-
            sharing requirements)'' after ``Benefit requirements'';
            and
                (2) by adding at the end the following new clause:
                                ``(iv) Requirements relating to
                            marketing materials and summaries and
                            schedules of benefits regarding a
                            Medicare+Choice plan.''.
        (b) Effective Date.--The amendments made by subsection (a)
    take effect on the date of the enactment of this Act.

    SEC. 615. ELECTION OF UNIFORM LOCAL COVERAGE POLICY FOR MEDICARE+CHOICE
                        PLAN COVERING MULTIPLE LOCALITIES.

        Section 1852(a)(2) (42 U.S.C. 1395w-22(a)(2)) is amended by
    adding at the end the following new subparagraph:
                        ``(C) Election of uniform coverage
                    policy.--In the case of a Medicare+Choice
                    organization that offers a Medicare+Choice plan
                    in an area in which more than one local
                    coverage policy is applied with respect to
                    different parts of the area, the organization
                    may elect to have the local coverage policy for
                    the part of the area that is most beneficial to
                    Medicare+Choice enrollees (as identified by the
                    Secretary) apply with respect to all
                    Medicare+Choice enrollees enrolled in the
                    plan.''.

    SEC. 616. ELIMINATING HEALTH DISPARITIES IN MEDICARE+CHOICE PROGRAM.

        (a) Quality Assurance Program Focus on Racial and Ethnic
    Minorities.--Subparagraphs (A) and (B) of section 1852(e)(2)
    (42 U.S.C. 1395w-22(e)(2)) are each amended by adding at the
    end the following:
                    ``Such program shall include a separate focus
                    (with respect to all the elements described in
                    this subparagraph) on racial and ethnic
                    minorities.''.
        (b) Report.--Section 1852(e) (42 U.S.C. 1395w-22(e)) is
    amended by adding at the end the following new paragraph:
                ``(5) Report to congress.--
                        ``(A) In general.--Not later than 2 years
                    after the date of the enactment of this
                    paragraph, and biennially thereafter, the
                    Secretary shall submit to Congress a report
                    regarding how quality assurance programs
                    conducted under this subsection focus on racial
                    and ethnic minorities.
                        ``(B) Contents of report.--Each such report
                    shall include the following:
                                ``(i) A description of the means by
                            which such programs focus on such
                            racial and ethnic minorities.
                                ``(ii) An evaluation of the impact
                            of such programs on eliminating health
                            disparities and on improving health
                            outcomes, continuity and coordination
                            of care, management of chronic
                            conditions, and consumer satisfaction.
                                ``(iii) Recommendations on ways to
                            reduce clinical outcome disparities
                            among racial and ethnic minorities.''.

    SEC. 617. MEDICARE+CHOICE PROGRAM COMPATIBILITY WITH EMPLOYER OR UNION
                        GROUP HEALTH PLANS.

        (a) In General.--Section 1857 (42 U.S.C. 1395w-27) is
    amended by adding at the end the following new subsection:
        ``(i) Medicare+Choice Program Compatibility With Employer
    or Union Group Health Plans.--To facilitate the offering of
    Medicare+Choice plans under contracts between Medicare+Choice
    organizations and employers, labor organizations, or the
    trustees of a fund established by 1 or more employers or labor
    organizations (or combination thereof) to furnish benefits to
    the entity's employees, former employees (or combination
    thereof) or members or former members (or combination thereof)
    of the labor organizations, the Secretary may waive or modify
    requirements that hinder the design of, the offering of, or the
    enrollment in such Medicare+Choice plans.''.
        (b) Effective Date.--The amendment made by subsection (a)
    shall apply with respect to years beginning with 2001.

    SEC. 618. SPECIAL MEDIGAP ENROLLMENT ANTIDISCRIMINATION PROVISION FOR
                        CERTAIN BENEFICIARIES.

        (a) Disenrollment Window in Accordance With Beneficiary's
    Circumstance.--Section 1882(s)(3) (42 U.S.C. 1395ss(s)(3)) is
    amended--
                (1) in subparagraph (A), in the matter following
            clause (iii), by striking ``, subject to subparagraph
            (E), seeks to enroll under the policy not later than 63
            days after the date of the termination of enrollment
            described in such subparagraph'' and inserting ``seeks
            to enroll under the policy during the period specified
            in subparagraph (E)''; and
                (2) by striking subparagraph (E) and inserting the
            following new subparagraph:
        ``(E) For purposes of subparagraph (A), the time period
    specified in this subparagraph is--
                ``(i) in the case of an individual described in
            subparagraph (B)(i), the period beginning on the date
            the individual receives a notice of termination or
            cessation of all supplemental health benefits (or, if
            no such notice is received, notice that a claim has
            been denied because of such a termination or cessation)
            and ending on the date that is 63 days after the
            applicable notice;
                ``(ii) in the case of an individual described in
            clause (ii), (iii), (v), or (vi) of subparagraph (B)
            whose enrollment is terminated involuntarily, the
            period beginning on the date that the individual
            receives a notice of termination and ending on the date
            that is 63 days after the date the applicable coverage
            is terminated;
                ``(iii) in the case of an individual described in
            subparagraph (B)(iv)(I), the period beginning on the
            earlier of (I) the date that the individual receives a
            notice of termination, a notice of the issuer's
            bankruptcy or insolvency, or other such similar notice,
            if any, and (II) the date that the applicable coverage
            is terminated, and ending on the date that is 63 days
            after the date the coverage is terminated;
                ``(iv) in the case of an individual described in
            clause (ii), (iii), (iv)(II), (iv)(III), (v), or (vi)
            of subparagraph (B) who disenrolls voluntarily, the
            period beginning on the date that is 60 days before the
            effective date of the disenrollment and ending on the
            date that is 63 days after such effective date; and
                ``(v) in the case of an individual described in
            subparagraph (B) but not described in the preceding
            provisions of this subparagraph, the period beginning
            on the effective date of the disenrollment and ending
            on the date that is 63 days after such effective
            date.''.
        (b) Extended Medigap Access for Interrupted Trial
    Periods.--Section 1882(s)(3) (42 U.S.C. 1395ss(s)(3)), as
    amended by subsection (a), is further amended by adding at the
    end the following new subparagraph:
        ``(F)(i) Subject to clause (ii), for purposes of this
    paragraph--
                ``(I) in the case of an individual described in
            subparagraph (B)(v) (or deemed to be so described,
            pursuant to this subparagraph) whose enrollment with an
            organization or provider described in subclause (II) of
            such subparagraph is involuntarily terminated within
            the first 12 months of such enrollment, and who,
            without an intervening enrollment, enrolls with another
            such organization or provider, such subsequent
            enrollment shall be deemed to be an initial enrollment
            described in such subparagraph; and
                ``(II) in the case of an individual described in
            clause (vi) of subparagraph (B) (or deemed to be so
            described, pursuant to this subparagraph) whose
            enrollment with a plan or in a program described in
            such clause is involuntarily terminated within the
            first 12 months of such enrollment, and who, without an
            intervening enrollment, enrolls in another such plan or
            program, such subsequent enrollment shall be deemed to
            be an initial enrollment described in such clause.
        ``(ii) For purposes of clauses (v) and (vi) of subparagraph
    (B), no enrollment of an individual with an organization or
    provider described in clause (v)(II), or with a plan or in a
    program described in clause (vi), may be deemed to be an
    initial enrollment under this clause after the 2-year period
    beginning on the date on which the individual first enrolled
    with such an organization, provider, plan, or program.''.

    SEC. 619. RESTORING EFFECTIVE DATE OF ELECTIONS AND CHANGES OF
                        ELECTIONS OF MEDICARE+CHOICE PLANS.

        (a) Open Enrollment.--Section 1851(f)(2) (42 U.S.C. 1395w-
    21(f)(2)) is amended by striking ``, except that if such
    election or change is made after the 10th day of any calendar
    month, then the election or change shall not take effect until
    the first day of the second calendar month following the date
    on which the election or change is made''.
        (b) Effective Date.--The amendment made by this section
    shall apply to elections and changes of coverage made on or
    after June 1, 2001.

    SEC. 620. PERMITTING ESRD BENEFICIARIES TO ENROLL IN ANOTHER
                        MEDICARE+CHOICE PLAN IF THE PLAN IN WHICH THEY ARE
                        ENROLLED IS TERMINATED.

        (a) In General.--Section 1851(a)(3)(B) (42 U.S.C. 1395w-
    21(a)(3)(B)) is amended by striking ``except that'' and all
    that follows and inserting the following: ``except that--
                                ``(i) an individual who develops
                            end-stage renal disease while enrolled
                            in a Medicare+Choice plan may continue
                            to be enrolled in that plan; and
                                ``(ii) in the case of such an
                            individual who is enrolled in a
                            Medicare+Choice plan under clause (i)
                            (or subsequently under this clause), if
                            the enrollment is discontinued under
                            circumstances described in section
                            1851(e)(4)(A), then the individual will
                            be treated as a `Medicare+Choice
                            eligible individual' for purposes of
                            electing to continue enrollment in
                            another Medicare+Choice plan.''.
        (b) Effective Date.--
                (1) In general.--The amendment made by subsection
            (a) shall apply to terminations and discontinuations
            occurring on or after the date of the enactment of this
            Act.
                (2) Application to prior plan terminations.--Clause
            (ii) of section 1851(a)(3)(B) of the Social Security
            Act (as inserted by subsection (a)) shall also apply to
            individuals whose enrollment in a Medicare+Choice plan
            was terminated or discontinued after December 31, 1998,
            and before the date of the enactment of this Act. In
            applying this paragraph, such an individual shall be
            treated, for purposes of part C of title XVIII of the
            Social Security Act, as having discontinued enrollment
            in such a plan as of the date of the enactment of this
            Act.

    SEC. 621. PROVIDING CHOICE FOR SKILLED NURSING FACILITY SERVICES UNDER
                        THE MEDICARE+CHOICE PROGRAM.

        (a) In General.--Section 1852 (42 U.S.C. 1395w-22) is
    amended by adding at the end the following new subsection:
        ``(l) Return to Home Skilled Nursing Facilities for Covered
    Post-Hospital Extended Care Services.--
                ``(1) Ensuring return to home snf.--
                        ``(A) In general.--In providing coverage of
                    post-hospital extended care services, a
                    Medicare+Choice plan shall provide for such
                    coverage through a home skilled nursing
                    facility if the following conditions are met:
                                ``(i) Enrollee election.--The
                            enrollee elects to receive such
                            coverage through such facility.
                                ``(ii) SNF agreement.--The facility
                            has a contract with the Medicare+Choice
                            organization for the provision of such
                            services, or the facility agrees to
                            accept substantially similar payment
                            under the same terms and conditions
                            that apply to similarly situated
                            skilled nursing facilities that are
                            under contract with the Medicare+Choice
                            organization for the provision of such
                            services and through which the enrollee
                            would otherwise receive such services.
                        ``(B) Manner of payment to home snf.--The
                    organization shall provide payment to the home
                    skilled nursing facility consistent with the
                    contract or the agreement described in
                    subparagraph (A)(ii), as the case may be.
                ``(2) No less favorable coverage.--The coverage
            provided under paragraph (1) (including scope of
            services, cost-sharing, and other criteria of coverage)
            shall be no less favorable to the enrollee than the
            coverage that would be provided to the enrollee with
            respect to a skilled nursing facility the post-hospital
            extended care services of which are otherwise covered
            under the Medicare+Choice plan.
                ``(3) Rule of construction.--Nothing in this
            subsection shall be construed to do the following:
                        ``(A) To require coverage through a skilled
                    nursing facility that is not otherwise
                    qualified to provide benefits under part A for
                    medicare beneficiaries not enrolled in a
                    Medicare+Choice plan.
                        ``(B) To prevent a skilled nursing facility
                    from refusing to accept, or imposing conditions
                    upon the acceptance of, an enrollee for the
                    receipt of post-hospital extended care
                    services.
                ``(4) Definitions.--In this subsection:
                        ``(A) Home skilled nursing facility.--The
                    term `home skilled nursing facility' means,
                    with respect to an enrollee who is entitled to
                    receive post-hospital extended care services
                    under a Medicare+Choice plan, any of the
                    following skilled nursing facilities:
                                ``(i) SNF residence at time of
                            admission.--The skilled nursing
                            facility in which the enrollee resided
                            at the time of admission to the
                            hospital preceding the receipt of such
                            post-hospital extended care services.
                                ``(ii) SNF in continuing care
                            retirement community.--A skilled
                            nursing facility that is providing such
                            services through a continuing care
                            retirement community (as defined in
                            subparagraph (B)) which provided
                            residence to the enrollee at the time
                            of such admission.
                                ``(iii) SNF residence of spouse at
                            time of discharge.--The skilled nursing
                            facility in which the spouse of the
                            enrollee is residing at the time of
                            discharge from such hospital.
                        ``(B) Continuing care retirement
                    community.--The term `continuing care
                    retirement community' means, with respect to an
                    enrollee in a Medicare+Choice plan, an
                    arrangement under which housing and health-
                    related services are provided (or arranged)
                    through an organization for the enrollee under
                    an agreement that is effective for the life of
                    the enrollee or for a specified period.''.
        (b) Effective Date.--The amendment made by subsection (a)
    shall apply with respect to contracts entered into or renewed
    on or after the date of the enactment of this Act.
        (c) MedPAC Study.--
                (1) Study.--The Medicare Payment Advisory
            Commission shall conduct a study analyzing the effects
            of the amendment made by subsection (a) on
            Medicare+Choice organizations. In conducting such
            study, the Commission shall examine the effects (if
            any) such amendment has had--
                        (A) on the scope of additional benefits
                    provided under the Medicare+Choice program;
                        (B) on the administrative and other costs
                    incurred by Medicare+Choice organizations; and
                        (C) on the contractual relationships
                    between such organizations and skilled nursing
                    facilities.
                (2) Report.--Not later than 2 years after the date
            of the enactment of this Act, the Commission shall
            submit to Congress a report on the study conducted
            under paragraph (1).

    SEC. 622. PROVIDING FOR ACCOUNTABILITY OF MEDICARE+CHOICE PLANS.

        (a) Mandatory Review of ACR Submissions by the Chief
    Actuary of the Health Care Financing Administration.--Section
    1854(a)(5)(A) (42 U.S.C. 1395w-24(a)(5)(A)) is amended--
                (1) by striking ``value'' and inserting ``values'';
            and
                (2) by adding at the end the following: ``The Chief
            Actuary of the Health Care Financing Administration
            shall review the actuarial assumptions and data used by
            the Medicare+Choice organization with respect to such
            rates, amounts, and values so submitted to determine
            the appropriateness of such assumptions and data.''.
        (b) Effective Date.--The amendments made by subsection (a)
    shall apply to submissions made on or after May 1, 2001.

    SEC. 623. INCREASED CIVIL MONEY PENALTY FOR MEDICARE+CHOICE
                        ORGANIZATIONS THAT TERMINATE CONTRACTS MID-YEAR.

        (a) In General.--Section 1857(g)(3) (42 U.S.C. 1395w-
    27(g)(3)) is amended by adding at the end the following new
    subparagraph:
                        ``(D) Civil monetary penalties of not more
                    than $100,000, or such higher amount as the
                    Secretary may establish by regulation, where
                    the finding under subsection (c)(2)(A) is based
                    on the organization's termination of its
                    contract under this section other than at a
                    time and in a manner provided for under
                    subsection (a).''.
        (b) Effective Date.--The amendment made by subsection (a)
    shall apply to terminations occurring after the date of the
    enactment of this Act.

                     Subtitle C--Other Managed Care Reforms

    SEC. 631. 1-YEAR EXTENSION OF SOCIAL HEALTH MAINTENANCE ORGANIZATION
                        (SHMO) DEMONSTRATION PROJECT.

        Section 4018(b)(1) of the Omnibus Budget Reconciliation Act
    of 1987, as amended by section 531(a)(1) of BBRA (113 Stat.
    1501A-388), is amended by striking ``18 months'' and inserting
    ``30 months''.

    SEC. 632. REVISED TERMS AND CONDITIONS FOR EXTENSION OF MEDICARE
                        COMMUNITY NURSING ORGANIZATION (CNO) DEMONSTRATION
                        PROJECT.

        (a) In General.--Section 532 of BBRA (113 Stat. 1501A-388)
    is amended--
                (1) in subsection (a), by striking the second
            sentence; and
                (2) by striking subsection (b) and inserting the
            following new subsection:
        ``(b) Terms and Conditions.--
                ``(1) January through september 2000.--For the 9-
            month period beginning with January 2000, any such
            demonstration project shall be conducted under the same
            terms and conditions as applied to such demonstration
            during 1999.
                ``(2) October 2000 through december 2001.--For the
            15-month period beginning with October 2000, any such
            demonstration project shall be conducted under the same
            terms and conditions as applied to such demonstration
            during 1999, except that the following modifications
            shall apply:
                        ``(A) Basic capitation rate.--The basic
                    capitation rate paid for services covered under
                    the project (other than case management
                    services) per enrollee per month and furnished
                    during--
                                ``(i) the period beginning with
                            October 1, 2000, and ending with
                            December 31, 2000, shall be determined
                            by actuarially adjusting the actual
                            capitation rate paid for such services
                            in 1999 for inflation, utilization, and
                            other changes to the CNO service
                            package, and by reducing such adjusted
                            capitation rate by 10 percent in the
                            case of the demonstration sites located
                            in Arizona, Minnesota, and Illinois,
                            and 15 percent for the demonstration
                            site located in New York; and
                                ``(ii) 2001 shall be determined by
                            actuarially adjusting the capitation
                            rate determined under clause (i) for
                            inflation, utilization, and other
                            changes to the CNO service package.
                        ``(B) Targeted case management fee.--
                    Effective October 1, 2000--
                                ``(i) the case management fee per
                            enrollee per month for--
                                        ``(I) the period described
                                    in subparagraph (A)(i) shall be
                                    determined by actuarially
                                    adjusting the case management
                                    fee for 1999 for inflation; and
                                        ``(II) 2001 shall be
                                    determined by actuarially
                                    adjusting the amount determined
                                    under subclause (I) for
                                    inflation; and
                                ``(ii) such case management fee
                            shall be paid only for enrollees who
                            are classified as moderately frail or
                            frail pursuant to criteria established
                            by the Secretary.
                        ``(C) Greater uniformity in clinical
                    features among sites.--Each project shall
                    implement for each site--
                                ``(i) protocols for periodic
                            telephonic contact with enrollees based
                            on--
                                        ``(I) the results of such
                                    standardized written health
                                    assessment; and
                                        ``(II) the application of
                                    appropriate care planning
                                    approaches;
                                ``(ii) disease management programs
                            for targeted diseases (such as
                            congestive heart failure, arthritis,
                            diabetes, and hypertension) that are
                            highly prevalent in the enrolled
                            populations;
                                ``(iii) systems and protocols to
                            track enrollees through
                            hospitalizations, including pre-
                            admission planning, concurrent
                            management during inpatient hospital
                            stays, and post-discharge assessment,
                            planning, and follow-up; and
                                ``(iv) standardized patient
                            educational materials for specified
                            diseases and health conditions.
                        ``(D) Quality improvement.--Each project
                    shall implement at each site once during the
                    15-month period--
                                ``(i) enrollee satisfaction
                            surveys; and
                                ``(ii) reporting on specified
                            quality indicators for the enrolled
                            population.
        ``(c) Evaluation.--
                ``(1) Preliminary report.--Not later than July 1,
            2001, the Secretary of Health and Human Services shall
            submit to the Committees on Ways and Means and Commerce
            of the House of Representatives and the Committee on
            Finance of the Senate a preliminary report that--
                        ``(A) evaluates such demonstration projects
                    for the period beginning July 1, 1997, and
                    ending December 31, 1999, on a site-specific
                    basis with respect to the impact on per
                    beneficiary spending, specific health
                    utilization measures, and enrollee
                    satisfaction; and
                        ``(B) includes a similar evaluation of such
                    projects for the portion of the extension
                    period that occurs after September 30, 2000.
                ``(2) Final report.--The Secretary shall submit a
            final report to such Committees on such demonstration
            projects not later than July 1, 2002. Such report shall
            include the same elements as the preliminary report
            required by paragraph (1), but for the period after
            December 31, 1999.
                ``(3) Methodology for spending comparisons.--Any
            evaluation of the impact of the demonstration projects
            on per beneficiary spending included in such reports
            shall include a comparison of--
                        ``(A) data for all individuals who--
                                ``(i) were enrolled in such
                            demonstration projects as of the first
                            day of the period under evaluation; and
                                ``(ii) were enrolled for a minimum
                            of 6 months thereafter; with
                        ``(B) data for a matched sample of
                    individuals who are enrolled under part B of
                    title XVIII of the Social Security Act and are
                    not enrolled in such a project, or in a
                    Medicare+Choice plan under part C of such
                    title, a plan offered by an eligible
                    organization under section 1876 of such Act, or
                    a health care prepayment plan under section
                    1833(a)(1)(A) of such Act.''.
        (b) Effective Date.--The amendments made by subsection (a)
    shall be effective as if included in the enactment of section
    532 of BBRA (113 Stat. 1501A-388).

    SEC. 633. EXTENSION OF MEDICARE MUNICIPAL HEALTH SERVICES DEMONSTRATION
                        PROJECTS.

        Section 9215(a) of the Consolidated Omnibus Budget
    Reconciliation Act of 1985 (42 U.S.C. 1395b-1 note), as amended
    by section 6135 of the Omnibus Budget Reconciliation Act of
    1989, section 13557 of the Omnibus Budget Reconciliation Act of
    1993, section 4017 of BBA, and section 534 of BBRA (113 Stat.
    1501A-390), is amended by striking ``December 31, 2002'' and
    inserting ``December 31, 2004''.

    SEC. 634. SERVICE AREA EXPANSION FOR MEDICARE COST CONTRACTS DURING
                        TRANSITION PERIOD.

        Section 1876(h)(5) (42 U.S.C. 1395mm(h)(5)) is amended--
                (1) by redesignating subparagraph (B) as
            subparagraph (C); and
                (2) by inserting after subparagraph (A), the
            following new subparagraph:
        ``(B) Subject to subparagraph (C), the Secretary shall
    approve an application for a modification to a reasonable cost
    contract under this section in order to expand the service area
    of such contract if--
                ``(i) such application is submitted to the
            Secretary on or before September 1, 2003; and
                ``(ii) the Secretary determines that the
            organization with the contract continues to meet the
            requirements applicable to such organizations and
            contracts under this section.''.

                              TITLE VII--MEDICAID

    SEC. 701. DSH PAYMENTS.

        (a) Modifications to DSH Allotments.--
                (1) Increased allotments for fiscal years 2001 and
            2002.--
                        (A) In general.--Section 1923(f) (42 U.S.C.
                    1396r-4(f)) is amended--
                                (i) in paragraph (2), by striking
                            ``The DSH allotment'' and inserting
                            ``Subject to paragraph (4), the DSH
                            allotment'';
                                (ii) by redesignating paragraph (4)
                            as paragraph (6); and
                                (iii) by inserting after paragraph
                            (3) the following new paragraph:
                ``(4) Special rule for fiscal years 2001 and
            2002.--
                        ``(A) In general.--Notwithstanding
                    paragraph (2), the DSH allotment for any State
                    for--
                                ``(i) fiscal year 2001, shall be
                            the DSH allotment determined under
                            paragraph (2) for fiscal year 2000
                            increased, subject to subparagraph (B)
                            and paragraph (5), by the percentage
                            change in the consumer price index for
                            all urban consumers (all items; U.S.
                            city average) for fiscal year 2000; and
                                ``(ii) fiscal year 2002, shall be
                            the DSH allotment determined under
                            clause (i) increased, subject to
                            subparagraph (B) and paragraph (5), by
                            the percentage change in the consumer
                            price index for all urban consumers
                            (all items; U.S. city average) for
                            fiscal year 2001.
                        ``(B) Limitation.--Subparagraph (B) of
                    paragraph (3) shall apply to subparagraph (A)
                    of this paragraph in the same manner as that
                    subparagraph (B) applies to paragraph (3)(A).
                        ``(C) No application to allotments after
                    fiscal year 2002.--The DSH allotment for any
                    State for fiscal year 2003 or any succeeding
                    fiscal year shall be determined under paragraph
                    (3) without regard to the DSH allotments
                    determined under subparagraph (A) of this
                    paragraph.''.
                (2) Special rule for medicaid dsh allotment for
            extremely low dsh states.--
                        (A) In general.--Section 1923(f) (42 U.S.C.
                    1396r-4(f)), as amended by paragraph (1), is
                    amended by inserting after paragraph (4) the
                    following new paragraph:
                ``(5) Special rule for extremely low dsh states.--
            In the case of a State in which the total expenditures
            under the State plan (including Federal and State
            shares) for disproportionate share hospital adjustments
            under this section for fiscal year 1999, as reported to
            the Administrator of the Health Care Financing
            Administration as of August 31, 2000, is greater than 0
            but less than 1 percent of the State's total amount of
            expenditures under the State plan for medical
            assistance during the fiscal year, the DSH allotment
            for fiscal year 2001 shall be increased to 1 percent of
            the State's total amount of expenditures under such
            plan for such assistance during such fiscal year. In
            subsequent fiscal years, such increased allotment is
            subject to an increase for inflation as provided in
            paragraph (3)(A).''.
                        (B) Conforming amendment.--Section
                    1923(f)(3)(A) (42 U.S.C. 1396r-4(f)(3)(A)) is
                    amended by inserting ``and paragraph (5)''
                    after ``subparagraph (B)''.
                (3) Effective date.--The amendments made by
            paragraphs (1) and (2) take effect on the date the
            final regulation required under section 705(a)
            (relating to the application of an aggregate upper
            payment limit test for State medicaid spending for
            inpatient hospital services, outpatient hospital
            services, nursing facility services, intermediate care
            facility services for the mentally retarded, and clinic
            services provided by government facilities that are not
            State-owned or operated facilities) is published in the
            Federal Register.
        (b) Assuring Identification of Medicaid Managed Care
    Patients.--
                (1) In general.--Section 1932 (42 U.S.C. 1396u-2)
            is amended by adding at the end the following new
            subsection:
        ``(g) Identification of Patients for Purposes of Making DSH
    Payments.--Each contract with a managed care entity under
    section 1903(m) or under section 1905(t)(3) shall require the
    entity either--
                ``(1) to report to the State information necessary
            to determine the hospital services provided under the
            contract (and the identity of hospitals providing such
            services) for purposes of applying sections
            1886(d)(5)(F) and 1923; or
                ``(2) to include a sponsorship code in the
            identification card issued to individuals covered under
            this title in order that a hospital may identify a
            patient as being entitled to benefits under this
            title.''.
                (2) Clarification of counting managed care medicaid
            patients.--Section 1923 (42 U.S.C. 1396r-4) is
            amended--
                        (A) in subsection (a)(2)(D), by inserting
                    after ``the proportion of low-income and
                    medicaid patients'' the following: ``(including
                    such patients who receive benefits through a
                    managed care entity)'';
                        (B) in subsection (b)(2), by inserting
                    after ``a State plan approved under this title
                    in a period'' the following: ``(regardless of
                    whether such patients receive medical
                    assistance on a fee-for-service basis or
                    through a managed care entity)''; and
                        (C) in subsection (b)(3)(A)(i), by
                    inserting after ``under a State plan under this
                    title'' the following: ``(regardless of whether
                    the services were furnished on a fee-for-
                    service basis or through a managed care
                    entity)''.
                (3) Effective dates.--
                        (A) The amendment made by paragraph (1)
                    shall apply to contracts as of January 1, 2001.
                        (B) The amendments made by paragraph (2)
                    shall apply to payments made on or after
                    January 1, 2001.
        (c) Application of Medicaid DSH Transition Rule to Public
    Hospitals in All States.--
                (1) In general.--During the period described in
            paragraph (3), with respect to a State, section 4721(e)
            of the Balanced Budget Act of 1997 (Public Law 105-33;
            111 Stat. 514), as amended by section 607 of BBRA (113
            Stat. 1501A-396), shall be applied as though--
                        (A) ``September 30, 2002'' were substituted
                    for ``July 1, 1997'' each place it appears;
                        (B) ``hospitals owned or operated by a
                    State (as defined for purposes of title XIX of
                    such Act), or by an instrumentality or a unit
                    of government within a State (as so defined)''
                    were substituted for ``the State of
                    California'';
                        (C) paragraph (3) were redesignated as
                    paragraph (4);
                        (D) ``and'' were omitted from the end of
                    paragraph (2); and
                        (E) the following new paragraph were
                    inserted after paragraph (2):
                ``(3) `(as defined in subparagraph (B) but without
            regard to clause (ii) of that subparagraph and subject
            to subsection (d))' were substituted for `(as defined
            in subparagraph (B))' in subparagraph (A) of such
            section; and''.
                (2) Special rule.--With respect to California,
            section 4721(e) of the Balanced Budget Act of 1997
            (Public Law 105-33; 111 Stat. 514), as so amended,
            shall be applied without regard to paragraph (1).
                (3) Period described.--The period described in this
            paragraph is the period that begins, with respect to a
            State, on the first day of the first State fiscal year
            that begins after September 30, 2002, and ends on the
            last day of the succeeding State fiscal year.
                (4) Application to waivers.--With respect to a
            State operating under a waiver of the requirements of
            title XIX of the Social Security Act (42 U.S.C. 1396 et
            seq.) under section 1115 of such Act (42 U.S.C. 1315),
            the amount by which any payment adjustment made by the
            State under title XIX of such Act (42 U.S.C. 1396 et
            seq.), after the application of section 4721(e) of the
            Balanced Budget Act of 1997 under paragraph (1) to such
            State, exceeds the costs of furnishing hospital
            services provided by hospitals described in such
            section shall be fully reflected as an increase in the
            baseline expenditure limit for such waiver.
        (d) Assistance for Certain Public Hospitals.--
                (1) In general.--Beginning with fiscal year 2002,
            notwithstanding section 1923(f) of the Social Security
            Act (42 U.S.C. 1396r-4(f)) and subject to paragraph
            (3), with respect to a State, payment adjustments made
            under title XIX of the Social Security Act (42 U.S.C.
            1396 et seq.) to a hospital described in paragraph (2)
            shall be made without regard to the DSH allotment
            limitation for the State determined under section
            1923(f) of that Act (42 U.S.C. 1396r-4(f)).
                (2) Hospital described.--A hospital is described in
            this paragraph if the hospital--
                        (A) is owned or operated by a State (as
                    defined for purposes of title XIX of the Social
                    Security Act), or by an instrumentality or a
                    unit of government within a State (as so
                    defined);
                        (B) as of October 1, 2000--
                                (i) is in existence and operating
                            as a hospital described in subparagraph
                            (A); and
                                (ii) is not receiving
                            disproportionate share hospital
                            payments from the State in which it is
                            located under title XIX of such Act;
                            and
                        (C) has a low-income utilization rate (as
                    defined in section 1923(b)(3) of the Social
                    Security Act (42 U.S.C. 1396r-4(b)(3))) in
                    excess of 65 percent.
                (3) Limitation on expenditures.--
                        (A) In general.--With respect to any fiscal
                    year, the aggregate amount of Federal financial
                    participation that may be provided for payment
                    adjustments described in paragraph (1) for that
                    fiscal year for all States may not exceed the
                    amount described in subparagraph (B) for the
                    fiscal year.
                        (B) Amount described.--The amount described
                    in this subparagraph for a fiscal year is as
                    follows:
                                (i) For fiscal year 2002,
                            $15,000,000.
                                (ii) For fiscal year 2003,
                            $176,000,000.
                                (iii) For fiscal year 2004,
                            $269,000,000.
                                (iv) For fiscal year 2005,
                            $330,000,000.
                                (v) For fiscal year 2006 and each
                            fiscal year thereafter, $375,000,000.
        (e) DSH Payment Accountability Standards.--Not later than
    September 30, 2002, the Secretary of Health and Human Services
    shall implement accountability standards to ensure that Federal
    funds provided with respect to disproportionate share hospital
    adjustments made under section 1923 of the Social Security Act
    (42 U.S.C. 1396r-4) are used to reimburse States and hospitals
    eligible for such payment adjustments for providing
    uncompensated health care to low-income patients and are
    otherwise made in accordance with the requirements of section
    1923 of that Act.

    SEC. 702. NEW PROSPECTIVE PAYMENT SYSTEM FOR FEDERALLY-QUALIFIED HEALTH
                        CENTERS AND RURAL HEALTH CLINICS.

        (a) In General.--Section 1902(a) (42 U.S.C. 1396a(a)) is
    amended--
                (1) in paragraph (13)--
                        (A) in subparagraph (A), by adding ``and''
                    at the end;
                        (B) in subparagraph (B), by striking
                    ``and'' at the end; and
                        (C) by striking subparagraph (C); and
                (2) by inserting after paragraph (14) the following
            new paragraph:
                ``(15) provide for payment for services described
            in clause (B) or (C) of section 1905(a)(2) under the
            plan in accordance with subsection (aa);''.
        (b) New Prospective Payment System.--Section 1902 (42
    U.S.C. 1396a) is amended by adding at the end the following:
        ``(aa) Payment for Services Provided by Federally-Qualified
    Health Centers and Rural Health Clinics.--
                ``(1) In general.--Beginning with fiscal year 2001
            with respect to services furnished on or after January
            1, 2001, and each succeeding fiscal year, the State
            plan shall provide for payment for services described
            in section 1905(a)(2)(C) furnished by a Federally-
            qualified health center and services described in
            section 1905(a)(2)(B) furnished by a rural health
            clinic in accordance with the provisions of this
            subsection.
                ``(2) Fiscal year 2001.--Subject to paragraph (4),
            for services furnished on and after January 1, 2001,
            during fiscal year 2001, the State plan shall provide
            for payment for such services in an amount (calculated
            on a per visit basis) that is equal to 100 percent of
            the average of the costs of the center or clinic of
            furnishing such services during fiscal years 1999 and
            2000 which are reasonable and related to the cost of
            furnishing such services, or based on such other tests
            of reasonableness as the Secretary prescribes in
            regulations under section 1833(a)(3), or, in the case
            of services to which such regulations do not apply, the
            same methodology used under section 1833(a)(3),
            adjusted to take into account any increase or decrease
            in the scope of such services furnished by the center
            or clinic during fiscal year 2001.
                ``(3) Fiscal year 2002 and succeeding fiscal
            years.--Subject to paragraph (4), for services
            furnished during fiscal year 2002 or a succeeding
            fiscal year, the State plan shall provide for payment
            for such services in an amount (calculated on a per
            visit basis) that is equal to the amount calculated for
            such services under this subsection for the preceding
            fiscal year--
                        ``(A) increased by the percentage increase
                    in the MEI (as defined in section 1842(i)(3))
                    applicable to primary care services (as defined
                    in section 1842(i)(4)) for that fiscal year;
                    and
                        ``(B) adjusted to take into account any
                    increase or decrease in the scope of such
                    services furnished by the center or clinic
                    during that fiscal year.
                ``(4) Establishment of initial year payment amount
            for new centers or clinics.--In any case in which an
            entity first qualifies as a Federally-qualified health
            center or rural health clinic after fiscal year 2000,
            the State plan shall provide for payment for services
            described in section 1905(a)(2)(C) furnished by the
            center or services described in section 1905(a)(2)(B)
            furnished by the clinic in the first fiscal year in
            which the center or clinic so qualifies in an amount
            (calculated on a per visit basis) that is equal to 100
            percent of the costs of furnishing such services during
            such fiscal year based on the rates established under
            this subsection for the fiscal year for other such
            centers or clinics located in the same or adjacent area
            with a similar case load or, in the absence of such a
            center or clinic, in accordance with the regulations
            and methodology referred to in paragraph (2) or based
            on such other tests of reasonableness as the Secretary
            may specify. For each fiscal year following the fiscal
            year in which the entity first qualifies as a
            Federally-qualified health center or rural health
            clinic, the State plan shall provide for the payment
            amount to be calculated in accordance with paragraph
            (3).
                ``(5) Administration in the case of managed care.--
                        ``(A) In general.--In the case of services
                    furnished by a Federally-qualified health
                    center or rural health clinic pursuant to a
                    contract between the center or clinic and a
                    managed care entity (as defined in section
                    1932(a)(1)(B)), the State plan shall provide
                    for payment to the center or clinic by the
                    State of a supplemental payment equal to the
                    amount (if any) by which the amount determined
                    under paragraphs (2), (3), and (4) of this
                    subsection exceeds the amount of the payments
                    provided under the contract.
                        ``(B) Payment schedule.--The supplemental
                    payment required under subparagraph (A) shall
                    be made pursuant to a payment schedule agreed
                    to by the State and the Federally-qualified
                    health center or rural health clinic, but in no
                    case less frequently than every 4 months.
                ``(6) Alternative payment methodologies.--
            Notwithstanding any other provision of this section,
            the State plan may provide for payment in any fiscal
            year to a Federally-qualified health center for
            services described in section 1905(a)(2)(C) or to a
            rural health clinic for services described in section
            1905(a)(2)(B) in an amount which is determined under an
            alternative payment methodology that--
                        ``(A) is agreed to by the State and the
                    center or clinic; and
                        ``(B) results in payment to the center or
                    clinic of an amount which is at least equal to
                    the amount otherwise required to be paid to the
                    center or clinic under this section.''.
        (c) Conforming Amendments.--
                (1) Section 4712 of the BBA (Public Law 105-33; 111
            Stat. 508) is amended by striking subsection (c).
                (2) Section 1915(b) (42 U.S.C. 1396n(b)) is amended
            by striking ``1902(a)(13)(C)'' and inserting
            ``1902(a)(15), 1902(aa),''.
        (d) GAO Study of Future Rebasing.--The Comptroller General
    of the United States shall provide for a study on the need for,
    and how to, rebase or refine costs for making payment under the
    medicaid program for services provided by Federally-qualified
    health centers and rural health clinics (as provided under the
    amendments made by this section). The Comptroller General shall
    provide for submittal of a report on such study to Congress by
    not later than 4 years after the date of the enactment of this
    Act.
        (e) Effective Date.--The amendments made by this section
    take effect on January 1, 2001, and shall apply to services
    furnished on or after such date.

    SEC. 703. STREAMLINED APPROVAL OF CONTINUED STATE-WIDE SECTION 1115
                        MEDICAID WAIVERS.

        (a) In General.--Section 1115 (42 U.S.C. 1315) is amended
    by adding at the end the following new subsection:
        ``(f) An application by the chief executive officer of a
    State for an extension of a waiver project the State is
    operating under an extension under subsection (e) (in this
    subsection referred to as the `waiver project') shall be
    submitted and approved or disapproved in accordance with the
    following:
                ``(1) The application for an extension of the
            waiver project shall be submitted to the Secretary at
            least 120 days prior to the expiration of the current
            period of the waiver project.
                ``(2) Not later than 45 days after the date such
            application is received by the Secretary, the Secretary
            shall notify the State if the Secretary intends to
            review the terms and conditions of the waiver project.
            A failure to provide such notification shall be deemed
            to be an approval of the application.
                ``(3) Not later than 45 days after the date a
            notification is made in accordance with paragraph (2),
            the Secretary shall inform the State of proposed
            changes in the terms and conditions of the waiver
            project. A failure to provide such information shall be
            deemed to be an approval of the application.
                ``(4) During the 30-day period that begins on the
            date information described in paragraph (3) is provided
            to a State, the Secretary shall negotiate revised terms
            and conditions of the waiver project with the State.
                ``(5)(A) Not later than 120 days after the date an
            application for an extension of the waiver project is
            submitted to the Secretary (or such later date agreed
            to by the chief executive officer of the State), the
            Secretary shall--
                        ``(i) approve the application subject to
                    such modifications in the terms and
                    conditions--
                                ``(I) as have been agreed to by the
                            Secretary and the State; or
                                ``(II) in the absence of such
                            agreement, as are determined by the
                            Secretary to be reasonable, consistent
                            with the overall objectives of the
                            waiver project, and not in violation of
                            applicable law; or
                        ``(ii) disapprove the application.
                ``(B) A failure by the Secretary to approve or
            disapprove an application submitted under this
            subsection in accordance with the requirements of
            subparagraph (A) shall be deemed to be an approval of
            the application subject to such modifications in the
            terms and conditions as have been agreed to (if any) by
            the Secretary and the State.
                ``(6) An approval of an application for an
            extension of a waiver project under this subsection
            shall be for a period not to exceed 3 years.
                ``(7) An extension of a waiver project under this
            subsection shall be subject to the final reporting and
            evaluation requirements of paragraphs (4) and (5) of
            subsection (e) (taking into account the extension under
            this subsection with respect to any timing requirements
            imposed under those paragraphs).''.
        (b) Effective Date.--The amendment made by subsection (a)
    shall apply to requests for extensions of demonstration
    projects pending or submitted on or after the date of the
    enactment of this Act.

    SEC. 704. MEDICAID COUNTY-ORGANIZED HEALTH SYSTEMS.

        (a) In General.--Section 9517(c)(3)(C) of the Comprehensive
    Omnibus Budget Reconciliation Act of 1985 is amended by
    striking ``10 percent'' and inserting ``14 percent''.
        (b) Effective Date.--The amendment made by subsection (a)
    takes effect on the date of the enactment of this Act.

    SEC. 705. DEADLINE FOR ISSUANCE OF FINAL REGULATION RELATING TO
                        MEDICAID UPPER PAYMENT LIMITS.

        (a) In General.--Not later than December 31, 2000, the
    Secretary of Health and Human Services (in this section
    referred to as the ``Secretary''), notwithstanding any
    requirement of the Administrative Procedures Act under chapter
    5 of title 5, United States Code, or any other provision of
    law, shall issue under sections 447.272, 447.304, and 447.321
    of title 42, Code of Federal Regulations (and any other section
    of part 447 of title 42, Code of Federal Regulations that the
    Secretary determines is appropriate), a final regulation based
    on the proposed rule announced on October 5, 2000, that--
                (1) modifies the upper payment limit test applied
            to State medicaid spending for inpatient hospital
            services, outpatient hospital services, nursing
            facility services, intermediate care facility services
            for the mentally retarded, and clinic services by
            applying an aggregate upper payment limit to payments
            made to government facilities that are not State-owned
            or operated facilities; and
                (2) provides for a transition period in accordance
            with subsection (b).
        (b) Transition Period.--
                (1) In general.--The final regulation required
            under subsection (a) shall provide that, with respect
            to a State described in paragraph (3), the State shall
            be considered to be in compliance with the final
            regulation required under subsection (a) so long as,
            for each State fiscal year during the period described
            in paragraph (4), the State reduces payments under a
            State medicaid plan payment provision or methodology
            described in paragraph (3) (including a payment
            provision or methodology described in that paragraph
            that was approved under a waiver of such plan), or
            reduces the actual dollar payment levels described in
            paragraph (3)(B), so that the amount of the payments
            that would otherwise have been made under such
            provision, methodology, or payment levels by the State
            for any State fiscal year during such period is reduced
            by 15 percent in the first such State fiscal year, and
            by an additional 15 percent in each of the next 5 State
            fiscal years.
                (2) Requirement.--Notwithstanding paragraph (1),
            the final regulation required under subsection (a)
            shall provide that, for any period (or portion of a
            period) that occurs on or after October 1, 2008,
            medicaid payments made by a State described in
            paragraph (3) shall comply with such final regulation.
                (3) State described.--A State described in this
            paragraph is a State with a State medicaid plan payment
            provision or methodology (including a payment provision
            or methodology approved under a waiver of such plan)
            which--
                        (A) was approved, deemed to have been
                    approved, or was in effect on or before October
                    1, 1992 (including any subsequent amendments or
                    successor provisions or methodologies and
                    whether or not a State plan amendment was made
                    to carry out such provision or methodology
                    after such date) or under which claims for
                    Federal financial participation were filed and
                    paid on or before such date; and
                        (B) provides for payments that are in
                    excess of the upper payment limit test
                    established under the final regulation required
                    under subsection (a) (or which would be
                    noncompliant with such final regulation if the
                    actual dollar payment levels made under the
                    payment provision or methodology in the State
                    fiscal year which begins during 1999 were
                    continued).
                (4) Period described.--The period described in this
            paragraph is the period that begins on the first State
            fiscal year that begins after September 30, 2002, and
            ends on September 30, 2008.

    SEC. 706. ALASKA FMAP.

        Notwithstanding the first sentence of section 1905(b) of
    the Social Security Act (42 U.S.C. 1396d(b)), only with respect
    to each of fiscal years 2001 through 2005, for purposes of
    titles XIX and XXI of the Social Security Act, the State
    percentage used to determine the Federal medical assistance
    percentage for Alaska shall be that percentage which bears the
    same ratio to 45 percent as the square of the adjusted per
    capita income of Alaska (determined by dividing the State's 3-
    year average per capita income by 1.05) bears to the square of
    the per capita income of the 50 States.

    SEC. 707. 1-YEAR EXTENSION OF WELFARE-TO-WORK TRANSITION.

        (a) In General.--Section 1925(f) (42 U.S.C. 1396r-6(f)) is
    amended by striking ``2001'' and inserting ``2002''.
        (b) Conforming Amendment.--Section 1902(e)(1)(B) (42 U.S.C.
    1396a(e)(1)(B)) is amended by striking ``2001'' and inserting
    ``2002''.

    SEC. 708. ADDITIONAL ENTITIES QUALIFIED TO DETERMINE MEDICAID
                        PRESUMPTIVE ELIGIBILITY FOR LOW-INCOME CHILDREN.

        (a) In General.--Section 1920A(b)(3)(A)(i) (42 U.S.C.
    1396r-1a(b)(3)(A)(i)) is amended--
                (1) by striking ``or (II)'' and inserting ``,
            (II)''; and
                (2) by inserting ``eligibility of a child for
            medical assistance under the State plan under this
            title, or eligibility of a child for child health
            assistance under the program funded under title XXI,
            (III) is an elementary school or secondary school, as
            such terms are defined in section 14101 of the
            Elementary and Secondary Education Act of 1965 (20
            U.S.C. 8801), an elementary or secondary school
            operated or supported by the Bureau of Indian Affairs,
            a State or tribal child support enforcement agency, an
            organization that is providing emergency food and
            shelter under a grant under the Stewart B. McKinney
            Homeless Assistance Act, or a State or tribal office or
            entity involved in enrollment in the program under this
            title, under part A of title IV, under title XXI, or
            that determines eligibility for any assistance or
            benefits provided under any program of public or
            assisted housing that receives Federal funds, including
            the program under section 8 or any other section of the
            United States Housing Act of 1937 (42 U.S.C. 1437 et
            seq.) or under the Native American Housing Assistance
            and Self-Determination Act of 1996 (25 U.S.C. 4101 et
            seq.), or (IV) any other entity the State so deems, as
            approved by the Secretary'' before the semicolon.
        (b) Technical Amendments.--Section 1920A (42 U.S.C. 1396r-
    1a) is amended--
                (1) in subsection (b)(3)(A)(i), by striking ``42
            U.S.C. 9821'' and inserting ``42 U.S.C. 9831'';
                (2) in subsection (b)(3)(A)(ii), by striking
            ``paragraph (1)(A)'' and inserting ``paragraph (2)'';
            and
                (3) in subsection (c)(2), in the matter preceding
            subparagraph (A), by striking ``subsection (b)(1)(A)''
            and inserting ``subsection (b)(2)''.

    SEC. 709. DEVELOPMENT OF UNIFORM QMB/SLMB APPLICATION FORM.

        (a) In General.--Section 1905(p) (42 U.S.C. 1396d(p)) is
    amended by adding at the end the following new paragraph:
        ``(5)(A) The Secretary shall develop and distribute to
    States a simplified application form for use by individuals
    (including both qualified medicare beneficiaries and specified
    low-income medicare beneficiaries) in applying for medical
    assistance for medicare cost-sharing under this title in the
    States which elect to use such form. Such form shall be easily
    readable by applicants and uniform nationally.
        ``(B) In developing such form, the Secretary shall consult
    with beneficiary groups and the States.''.
        (b) Effective Date.--The amendment made by subsection (a)
    shall take effect 1 year after the date of the enactment of
    this Act, regardless of whether regulations have been
    promulgated to carry out such amendment by such date. The
    Secretary of Health and Human Services shall develop the
    uniform application form under such amendment by not later than
    9 months after the date of the enactment of this Act.

    SEC. 710. TECHNICAL CORRECTIONS.

        (a) In General.--Section 1903(f)(4) (42 U.S.C. 1396b(f)(4))
    is amended--
                (1) by inserting ``1902(a)(10)(A)(ii)(XVII),''
            after ``1902(a)(10)(A)(ii)(XVI),''; and
                (2) by inserting ``1902(a)(10)(A)(ii)(XVIII),''
            after ``1902(a)(10)(A)(ii)(XVII),''.
        (b) Effective Dates.--(1) The amendment made by subsection
    (a)(1) shall be effective as if included in the enactment of
    section 121 of the Foster Care Independence Act of 1999 (Public
    Law 106-169).
        (2) The amendment made by subsection (a)(2) shall be
    effective as if included in the enactment of the Breast and
    Cervical Cancer Prevention and Treatment Act of 2000 (Public
    Law 106-354).

             TITLE VIII--STATE CHILDREN'S HEALTH INSURANCE PROGRAM

    SEC. 801. SPECIAL RULE FOR REDISTRIBUTION AND AVAILABILITY OF UNUSED
                        FISCAL YEAR 1998 AND 1999 SCHIP ALLOTMENTS.

        (a) Change in Rules for Redistribution and Retention of
    Unused SCHIP Allotments for Fiscal Years 1998 and 1999.--
    Section 2104 (42 U.S.C. 1397dd) is amended by adding at the end
    the following new subsection:
        ``(g) Rule for Redistribution and Extended Availability of
    Fiscal Years 1998 and 1999  Allotments.--
                ``(1) Amount redistributed.--
                        ``(A) In general.--In the case of a State
                    that expends all of its allotment under
                    subsection (b) or (c) for fiscal year 1998 by
                    the end of fiscal year 2000, or for fiscal year
                    1999 by the end of fiscal year 2001, the
                    Secretary shall redistribute to the State under
                    subsection (f) (from the fiscal year 1998 or
                    1999 allotments of other States, respectively,
                    as determined by the application of paragraphs
                    (2) and (3) with respect to the respective
                    fiscal year) the following amount:
                                ``(i) State.--In the case of 1 of
                            the 50 States or the District of
                            Columbia, with respect to--
                                        ``(I) the fiscal year 1998
                                    allotment, the amount by which
                                    the State's expenditures under
                                    this title in fiscal years
                                    1998, 1999, and 2000 exceed the
                                    State's allotment for fiscal
                                    year 1998 under subsection (b);
                                    or
                                        ``(II) the fiscal year 1999
                                    allotment, the amount by which
                                    the State's expenditures under
                                    this title in fiscal years
                                    1999, 2000, and 2001 exceed the
                                    State's allotment for fiscal
                                    year 1999 under subsection (b).
                                ``(ii) Territory.--In the case of a
                            commonwealth or territory described in
                            subsection (c)(3), an amount that bears
                            the same ratio to 1.05 percent of the
                            total amount described in paragraph
                            (2)(B)(i)(I) as the ratio of the
                            commonwealth's or territory's fiscal
                            year 1998 or 1999 allotment under
                            subsection (c) (as the case may be)
                            bears to the total of all such
                            allotments for such fiscal year under
                            such subsection.
                        ``(B) Expenditure rules.--An amount
                    redistributed to a State under this paragraph
                    with respect to fiscal year 1998 or 1999--
                                ``(i) shall not be included in the
                            determination of the State's allotment
                            for any fiscal year under this section;
                                ``(ii) notwithstanding subsection
                            (e), shall remain available for
                            expenditure by the State through the
                            end of fiscal year 2002; and
                                ``(iii) shall be counted as being
                            expended with respect to a fiscal year
                            allotment in accordance with applicable
                            regulations of the Secretary.
                ``(2) Extension of availability of portion of
            unexpended fiscal years 1998 and 1999 allotments.--
                        ``(A) In general.--Notwithstanding
                    subsection (e):
                                ``(i) Fiscal year 1998 allotment.--
                            Of the amounts allotted to a State
                            pursuant to this section for fiscal
                            year 1998 that were not expended by the
                            State by the end of fiscal year 2000,
                            the amount specified in subparagraph
                            (B) for fiscal year 1998 for such State
                            shall remain available for expenditure
                            by the State through the end of fiscal
                            year 2002.
                                ``(ii) Fiscal year 1999
                            allotment.--Of the amounts allotted to
                            a State pursuant to this subsection for
                            fiscal year 1999 that were not expended
                            by the State by the end of fiscal year
                            2001, the amount specified in
                            subparagraph (B) for fiscal year 1999
                            for such State shall remain available
                            for expenditure by the State through
                            the end of fiscal year 2002.
                        ``(B) Amount remaining available for
                    expenditure.--The amount specified in this
                    subparagraph for a State for a fiscal year is
                    equal to--
                                ``(i) the amount by which (I) the
                            total amount available for
                            redistribution under subsection (f)
                            from the allotments for that fiscal
                            year, exceeds (II) the total amounts
                            redistributed under paragraph (1) for
                            that fiscal year; multiplied by
                                ``(ii) the ratio of the amount of
                            such State's unexpended allotment for
                            that fiscal year to the total amount
                            described in clause (i)(I) for that
                            fiscal year.
                        ``(C) Use of up to 10 percent of retained
                    1998 allotments for outreach activities.--
                    Notwithstanding section 2105(c)(2)(A), with
                    respect to any State described in subparagraph
                    (A)(i), the State may use up to 10 percent of
                    the amount specified in subparagraph (B) for
                    fiscal year 1998 for expenditures for outreach
                    activities approved by the Secretary.
                ``(3) Determination of amounts.--For purposes of
            calculating the amounts described in paragraphs (1) and
            (2) relating to the allotment for fiscal year 1998 or
            fiscal year 1999, the Secretary shall use the amounts
            reported by the States not later than December 15,
            2000, or November 30, 2001, respectively, on HCFA Form
            64 or HCFA Form 21, as approved by the Secretary.''.
        (b) Effective Date.--The amendments made by this section
    shall take effect as if included in the enactment of section
    4901 of BBA (111 Stat. 552).

    SEC. 802. AUTHORITY TO PAY MEDICAID EXPANSION SCHIP COSTS FROM TITLE
                        XXI APPROPRIATION.

        (a) Authority To Pay Medicaid Expansion SCHIP Costs From
    Title XXI Appropriation.--Section 2105(a) (42 U.S.C. 1397ee(a))
    is amended--
                (1) by redesignating subparagraphs (A) through (D)
            of paragraph (2) as clauses (i) through (iv),
            respectively, and indenting appropriately;
                (2) by redesignating paragraph (1) as subparagraph
            (C), and indenting appropriately;
                (3) by redesignating paragraph (2) as subparagraph
            (D), and indenting appropriately;
                (4) by striking ``(a) In General.--'' and the
            remainder of the text that precedes subparagraph (C),
            as so redesignated, and inserting the following:
        ``(a) Payments.--
                ``(1) In general.--Subject to the succeeding
            provisions of this section, the Secretary shall pay to
            each State with a plan approved under this title, from
            its allotment under section 2104, an amount for each
            quarter equal to the enhanced FMAP (or, in the case of
            expenditures described in subparagraph (B), the Federal
            medical assistance percentage (as defined in the first
            sentence of section 1905(b))) of expenditures in the
            quarter--
                        ``(A) for child health assistance under the
                    plan for targeted low-income children in the
                    form of providing medical assistance for which
                    payment is made on the basis of an enhanced
                    FMAP under the fourth sentence of section
                    1905(b);
                        ``(B) for the provision of medical
                    assistance on behalf of a child during a
                    presumptive eligibility period under section
                    1920A;''; and
                (5) by adding after subparagraph (D), as so
            redesignated, the following new paragraph:
                ``(2) Order of payments.--Payments under paragraph
            (1) from a State's allotment shall be made in the
            following order:
                        ``(A) First, for expenditures for items
                    described in paragraph (1)(A).
                        ``(B) Second, for expenditures for items
                    described in paragraph (1)(B).
                        ``(C) Third, for expenditures for items
                    described in paragraph (1)(C).
                        ``(D) Fourth, for expenditures for items
                    described in paragraph (1)(D).''.
        (b) Elimination of Requirement To Reduce Title XXI
    Allotment by Medicaid Expansion SCHIP Costs.--Section 2104 (42
    U.S.C. 1397dd) is amended by striking subsection (d).
        (c) Authority To Transfer Title XXI Appropriations to Title
    XIX Appropriation Account as Reimbursement for Medicaid
    Expenditures for Medicaid Expansion SCHIP Services.--
    Notwithstanding any other provision of law, all amounts
    appropriated under title XXI and allotted to a State pursuant
    to subsection (b) or (c) of section 2104 of the Social Security
    Act (42 U.S.C. 1397dd) for fiscal years 1998 through 2000
    (including any amounts that, but for this provision, would be
    considered to have expired) and not expended in providing child
    health assistance or related services for which payment may be
    made pursuant to subparagraph (C) or (D) of section 2105(a)(1)
    of such Act (42 U.S.C. 1397ee(a)(1)) (as amended by subsection
    (a)), shall be available to reimburse the Grants to States for
    Medicaid account in an amount equal to the total payments made
    to such State under section 1903(a) of such Act (42 U.S.C.
    1396b(a)) for expenditures in such years for medical assistance
    described in subparagraphs (A) and (B) of section 2105(a)(1) of
    such Act (42 U.S.C. 1397ee(a)(1)) (as so amended).
        (d) Conforming Amendments.--
                (1) Section 1905(b) (42 U.S.C. 1396d(b)) is amended
            in the fourth sentence by striking ``the State's
            allotment under section 2104 (not taking into account
            reductions under section 2104(d)(2)) for the fiscal
            year reduced by the amount of any payments made under
            section 2105 to the State from such allotment for such
            fiscal year'' and inserting ``the State's available
            allotment under section 2104''.
                (2) Section 1905(u)(1)(B) (42 U.S.C.
            1396d(u)(1)(B)) is amended by striking ``and section
            2104(d)''.
                (3) Section 2104 (42 U.S.C. 1397dd), as amended by
            subsection (b), is further amended--
                        (A) in subsection (b)(1), by striking ``and
                    subsection (d)''; and
                        (B) in subsection (c)(1), by striking
                    ``subject to subsection (d),''.
                (4) Section 2105(c) (42 U.S.C. 1397ee(c)) is
            amended--
                        (A) in paragraph (2)(A), by striking all
                    that follows ``Except as provided in this
                    paragraph,'' and inserting ``the amount of
                    payment that may be made under subsection (a)
                    for a fiscal year for expenditures for items
                    described in paragraph (1)(D) of such
                    subsection shall not exceed 10 percent of the
                    total amount of expenditures for which payment
                    is made under subparagraphs (A), (C), and (D)
                    of paragraph (1) of such subsection.'';
                        (B) in paragraph (2)(B), by striking
                    ``described in subsection (a)(2)'' and
                    inserting ``described in subsection
                    (a)(1)(D)''; and
                        (C) in paragraph (6)(B), by striking
                    ``Except as otherwise provided by law,'' and
                    inserting ``Except as provided in subparagraph
                    (A) or (B) of subsection (a)(1) or any other
                    provision of law,''.
                (5) Section 2110(a) (42 U.S.C. 1397jj(a)) is
            amended by striking ``section 2105(a)(2)(A)'' and
            inserting ``section 2105(a)(1)(D)(i)''.
        (e) Technical Amendment.--Section 2105(d)(2)(B)(ii) (42
    U.S.C. 1397ee(d)(2)(B)(ii)) is amended by striking ``enhanced
    FMAP under section 1905(u)'' and inserting ``enhanced FMAP
    under the fourth sentence of section 1905(b)''.
        (f) Effective Date.--The amendments made by this section
    shall be effective as if included in the enactment of section
    4901 of the BBA (111 Stat. 552).

    SEC. 803. APPLICATION OF MEDICAID CHILD PRESUMPTIVE ELIGIBILITY
                        PROVISIONS.

        Section 2107(e)(1) (42 U.S.C. 1397gg(e)(1)) is amended by
    adding at the end the following new subparagraph:
                        ``(D) Section 1920A (relating to
                    presumptive eligibility for children).''.

                           TITLE IX--OTHER PROVISIONS

                            Subtitle A--PACE Program

    SEC. 901. EXTENSION OF TRANSITION FOR CURRENT WAIVERS.

        Section 4803(d)(2) of BBA is amended--
                (1) in subparagraph (A), by striking ``24 months''
            and inserting ``36 months'';
                (2) in subparagraph (A), by striking ``the initial
            effective date of regulations described in subsection
            (a)'' and inserting ``July 1, 2000''; and
                (3) in subparagraph (B), by striking ``3 years''
            and inserting ``4 years''.

    SEC. 902. CONTINUING OF CERTAIN OPERATING ARRANGEMENTS PERMITTED.

        (a) In General.--Section 1894(f)(2) (42 U.S.C.
    1395eee(f)(2)) is amended by adding at the end the following
    new subparagraph:
                        ``(C) Continuation of modifications or
                    waivers of operational requirements under
                    demonstration status.--If a PACE program
                    operating under demonstration authority has
                    contractual or other operating arrangements
                    which are not otherwise recognized in
                    regulation and which were in effect on July 1,
                    2000, the Secretary (in close consultation
                    with, and with the concurrence of, the State
                    administering agency) shall permit any such
                    program to continue such arrangements so long
                    as such arrangements are found by the Secretary
                    and the State to be reasonably consistent with
                    the objectives of the PACE program.''.
        (b) Conforming Amendment.--Section 1934(f)(2) (42 U.S.C.
    1396u-4(f)(2)) is amended by adding at the end the following
    new subparagraph:
                        ``(C) Continuation of modifications or
                    waivers of operational requirements under
                    demonstration status.--If a PACE program
                    operating under demonstration authority has
                    contractual or other operating arrangements
                    which are not otherwise recognized in
                    regulation and which were in effect on July 1,
                    2000, the Secretary (in close consultation
                    with, and with the concurrence of, the State
                    administering agency) shall permit any such
                    program to continue such arrangements so long
                    as such arrangements are found by the Secretary
                    and the State to be reasonably consistent with
                    the objectives of the PACE program.''.
        (c) Effective Date.--The amendments made by this section
    shall be effective as included in the enactment of BBA.

    SEC. 903. FLEXIBILITY IN EXERCISING WAIVER AUTHORITY.

        In applying sections 1894(f)(2)(B) and 1934(f)(2)(B) of the
    Social Security Act (42 U.S.C. 1395eee(f)(2)(B), 1396u-
    4(f)(2)(B)), the Secretary of Health and Human Services--
                (1) shall approve or deny a request for a
            modification or a waiver of provisions of the PACE
            protocol not later than 90 days after the date the
            Secretary receives the request; and
                (2) may exercise authority to modify or waive such
            provisions in a manner that responds promptly to the
            needs of PACE programs relating to areas of employment
            and the use of community-based primary care physicians.

       Subtitle B--Outreach to Eligible Low-Income Medicare Beneficiaries

    SEC. 911. OUTREACH ON AVAILABILITY OF MEDICARE COST-SHARING ASSISTANCE
                        TO ELIGIBLE LOW-INCOME MEDICARE BENEFICIARIES.

        (a) Outreach.--
                (1) In general.--Title XI (42 U.S.C. 1301 et seq.)
            is amended by inserting after section 1143 the
            following new section:

        ``outreach efforts to increase awareness of the availability of
                             medicare cost-sharing

        ``Sec. 1144. (a) Outreach.--
                ``(1) In general.--The Commissioner of Social
            Security (in this section referred to as the
            `Commissioner') shall conduct outreach efforts to--
                        ``(A) identify individuals entitled to
                    benefits under the medicare program under title
                    XVIII who may be eligible for medical
                    assistance for payment of the cost of medicare
                    cost-sharing under the medicaid program
                    pursuant to sections 1902(a)(10)(E) and 1933;
                    and
                        ``(B) notify such individuals of the
                    availability of such medical assistance under
                    such sections.
                ``(2) Content of notice.--Any notice furnished
            under paragraph (1) shall state that eligibility for
            medicare cost-sharing assistance under such sections is
            conditioned upon--
                        ``(A) the individual providing to the State
                    information about income and resources (in the
                    case of an individual residing in a State that
                    imposes an assets test for such eligibility);
                    and
                        ``(B) meeting the applicable eligibility
                    criteria.
        ``(b) Coordination With States.--
                ``(1) In general.--In conducting the outreach
            efforts under this section, the Commissioner shall--
                        ``(A) furnish the agency of each State
                    responsible for the administration of the
                    medicaid program and any other appropriate
                    State agency with information consisting of the
                    name and address of individuals residing in the
                    State that the Commissioner determines may be
                    eligible for medical assistance for payment of
                    the cost of medicare cost-sharing under the
                    medicaid program pursuant to sections
                    1902(a)(10)(E) and 1933; and
                        ``(B) update any such information not less
                    frequently than once per year.
                ``(2) Information in periodic updates.--The
            periodic updates described in paragraph (1)(B) shall
            include information on individuals who are or may be
            eligible for the medical assistance described in
            paragraph (1)(A) because such individuals have
            experienced reductions in benefits under title II.''.
                (2) Amendment to title xix.--Section 1905(p) (42
            U.S.C. 1396d(p)), as amended by section 710(a), is
            amended by adding at the end the following new
            paragraph:
        ``(6) For provisions relating to outreach efforts to
    increase awareness of the availability of medicare cost-
    sharing, see section 1144.''.
        (b) GAO Report.--The Comptroller General of the United
    States shall conduct a study of the impact of section 1144 of
    the Social Security Act (as added by subsection (a)(1)) on the
    enrollment of individuals for medicare cost-sharing under the
    medicaid program. Not later than 18 months after the date that
    the Commissioner of Social Security first conducts outreach
    under section 1144 of such Act, the Comptroller General shall
    submit to Congress a report on such study. The report shall
    include such recommendations for legislative changes as the
    Comptroller General deems appropriate.
        (c) Effective Date.--The amendments made by subsection (a)
    shall take effect one year after the date of the enactment of
    this Act.

               Subtitle C--Maternal and Child Health Block Grant

    SEC. 921. INCREASE IN AUTHORIZATION OF APPROPRIATIONS FOR THE MATERNAL
                        AND CHILD HEALTH SERVICES BLOCK GRANT.

        (a) In General.--Section 501(a) (42 U.S.C. 701(a)) is
    amended in the matter preceding paragraph (1) by striking
    ``$705,000,000 for fiscal year 1994'' and inserting
    ``$850,000,000 for fiscal year 2001''.
        (b) Effective Date.--The amendment made by subsection (a)
    takes effect on October 1, 2000.

                              Subtitle D--Diabetes

    SEC. 931. INCREASE IN APPROPRIATIONS FOR SPECIAL DIABETES PROGRAMS FOR
                        TYPE I DIABETES AND INDIANS.

        (a) Special Diabetes Programs for Type I Diabetes.--Section
    330B(b) of the Public Health Service Act (42 U.S.C. 254c-2(b))
    is amended--
                (1) by striking ``Notwithstanding'' and inserting
            the following:
                ``(1) Transferred funds.--Notwithstanding''; and
                (2) by adding at the end the following:
                ``(2) Appropriations.--For the purpose of making
            grants under this section, there is appropriated, out
            of any funds in the Treasury not otherwise
            appropriated--
                        ``(A) $70,000,000 for each of fiscal years
                    2001 and 2002 (which shall be combined with
                    amounts transferred under paragraph (1) for
                    each such fiscal years); and
                        ``(B) $100,000,000 for fiscal year 2003.''.
        (b) Special Diabetes Programs for Indians.--Section 330C(c)
    of such Act (42 U.S.C. 254c-3(c)) is amended--
                (1) by striking ``Notwithstanding'' and inserting
            the following:
                ``(1) Transferred funds.--Notwithstanding''; and
                (2) by adding at the end the following:
                ``(2) Appropriations.--For the purpose of making
            grants under this section, there is appropriated, out
            of any money in the Treasury not otherwise
            appropriated--
                        ``(A) $70,000,000 for each of fiscal years
                    2001 and 2002 (which shall be combined with
                    amounts transferred under paragraph (1) for
                    each such fiscal years); and
                        ``(B) $100,000,000 for fiscal year 2003.''.
        (c) Extension of Final Report on Grant Programs.--Section
    4923(b)(2) of BBA is amended by striking ``2002'' and inserting
    ``2003''.

    SEC. 932. APPROPRIATIONS FOR RICKY RAY HEMOPHILIA RELIEF FUND.

        Section 101(e) of the Ricky Ray Hemophilia Relief Fund Act
    of 1998 (42 U.S.C. 300c-22 note) is amended by adding at the
    end the following: ``There is appropriated to the Fund
    $475,000,000 for fiscal year 2001, to remain available until
    expended.''.

                   Subtitle E--Information on Nurse Staffing

    SEC. 941. POSTING OF INFORMATION ON NURSING FACILITY STAFFING.

        (a) Medicare.--Section 1819(b) (42 U.S.C. 1395i-3(b)) is
    amended by adding at the end the following new paragraph:
                ``(8) Information on nurse staffing.--
                        ``(A) In general.--A skilled nursing
                    facility shall post daily for each shift the
                    current number of licensed and unlicensed
                    nursing staff directly responsible for resident
                    care in the facility. The information shall be
                    displayed in a uniform manner (as specified by
                    the Secretary) and in a clearly visible place.
                        ``(B) Publication of data.--A skilled
                    nursing facility shall, upon request, make
                    available to the public the nursing staff data
                    described in subparagraph (A).''.
        (b) Medicaid.--Section 1919(b) (42 U.S.C. 1395r(b)) is
    amended by adding at the end the following new paragraph:
                ``(8) Information on nurse staffing.--
                        ``(A) In general.--A nursing facility shall
                    post daily for each shift the current number of
                    licensed and unlicensed nursing staff directly
                    responsible for resident care in the facility.
                    The information shall be displayed in a uniform
                    manner (as specified by the Secretary) and in a
                    clearly visible place.
                        ``(B) Publication of data.--A nursing
                    facility shall, upon request, make available to
                    the public the nursing staff data described in
                    subparagraph (A).''.
        (c) Effective Date.--The amendments made by this section
    shall take effect on January 1, 2003.

        Subtitle F--Adjustment of Multiemployer Plan Benefits Guaranteed

    SEC. 951. MULTIEMPLOYER PLAN BENEFITS GUARANTEED.

        (a) In General.--Section 4022A(c) of the Employee
    Retirement Income Security Act of 1974 (29 U.S.C. 1322a(c)) is
    amended--
                (1) by striking ``$5'' each place it appears in
            paragraph (1) and inserting ``$11'';
                (2) by striking ``$15'' in paragraph (1)(A)(i) and
            inserting ``$33''; and
                (3) by striking paragraphs (2), (5), and (6) and by
            redesignating paragraphs (3) and (4) as paragraphs (2)
            and (3), respectively.
        (b) Effective Date.--The amendments made by this section
    shall apply to any multiemployer plan that has not received
    financial assistance (within the meaning of section 4261 of the
    Employee Retirement Income Security Act of 1974) within the 1-
    year period ending on the date of the enactment of this Act.

     MEDICARE, MEDICAID, AND SCHIP BENEFITS IMPROVEMENT AND PROTECTION ACT
                                    OF 2000

          Following is explanatory language on H.R. 5661, as
    introduced on December 14, 2000. The conferees on H.R. 4577
    agree with the matter included in H.R. 5661 and enacted in this
    conference report by reference and the following description of
    it.

                   TITLE I--MEDICARE BENEFICIARY IMPROVEMENTS

                    SUBTITLE A--IMPROVED PREVENTIVE BENEFITS

    Section 101. Coverage of biennial screening pap smear and pelvic exams
          The provision modifies current law to provide Medicare
    coverage for biennial screening pap smears and pelvic exams,
    effective July 1, 2001.
    Section 102. Coverage of screening for glaucoma
          The provision would add Medicare coverage for annual
    glaucoma screenings, beginning January 1, 2002, for persons
    determined to be at high risk for glaucoma, individuals with a
    family history of glaucoma, and individuals with diabetes. The
    service would have to be furnished by or under the supervision
    of an optometrist or ophthalmologist who is legally authorized
    to perform such services in the state where the services are
    furnished.
    Section 103. Coverage of screening colonoscopy for average risk
            individuals
          The provision would authorize coverage for screening
    colonoscopies, beginning July 1, 2001, for all individuals, not
    just those at high risk. For persons not at high risk, payments
    could not be made for such procedures if performed within 10
    years of a previous screening colonoscopy or within 4 years of
    a screening flexible sigmoidoscopy.
    Section 104. Modernization of screening mammography benefit
          Beginning in 2002, the provision would eliminate the
    statutorily prescribed payment rate for screening mammography
    payments and specify that the services are to be paid under the
    physician fee schedule. The provision would specify two new
    payment rates for mammographies that utilize advanced new
    technology for the period April 1, 2001, to December 31, 2001.
    Payment for technologies that directly take digital images
    would equal 150% of what would otherwise be paid for a
    bilateral diagnostic mammography. For technologies that convert
    standard film images to digital form, an additional payment of
    fifteen dollars would be authorized. The Secretary would be
    required to determine whether a new code is required for tests
    furnished after 2001.
    Section 105. Coverage of medical nutrition therapy services for
            beneficiaries within diabetes or a renal disease
          The provision would establish, effective January 1, 2002,
    Medicare coverage for medical nutrition therapy services for
    beneficiaries who have diabetes or a renal disease. Medical
    nutrition therapy services would be defined as nutritional
    diagnostic, therapy and counseling services for the purpose of
    disease management which are furnished by a registered
    dietician or nutrition professional, pursuant to a referral by
    a physician. The provision would specify that the amount paid
    for medical nutrition therapy services would equal the lesser
    of the actual charge for the service or 85% of the amount that
    would be paid under the physician fee schedule if such services
    were provided by a physician. Assignment would be required for
    all claims. The Secretary would be required to submit a report
    to Congress that contains an evaluation of the effectiveness of
    services furnished under this provision.

                   subtitle b--other beneficiary improvements

    Section 111. Acceleration of reduction of beneficiary copayment for
            hospital outpatient department services
          Effective April 1, 2001, the provision would modify
    current law by limiting the amount of a beneficiary's copayment
    for a procedure in a hospital outpatient department to the
    hospital inpatient deductible applicable in that year.
          In addition, starting in April, 2001, the provision would
    require the Secretary of HHS to reduce the effective copayment
    rate for outpatient services to a maximum rate of 57% for the
    remainder of 2001, 55% in 2002 and 2003, 50% in 2004, 45% in
    2005, and 40% in 2006 and subsequent years. As stated in BBA
    97, hospitals may waive any increase in coinsurance that may
    have arisen from the implementation of the outpatient
    prospective payment system (PPS).
          The Comptroller General would be required to work with
    the National Association of Insurance Commissioners (NAIC) to
    evaluate the extent to which premiums for supplemental policies
    reflect the acceleration of the reduction in beneficiary
    coinsurance of hospital outpatient services and result in
    savings to beneficiaries and to report to the Congress by April
    1, 2004.
    Section 112. Preservation of coverage of drugs and biologicals under
            part B of the Medicare Program
          The provision would clarify policy with regard to
    coverage of drugs, provided incident to physicians services,
    that cannot be self-administered. The provision would specify
    that such drugs are covered when they are not usually self-
    administered by the patient.
    Section 113. Elimination of time limitation on Medicare benefits for
            immunosuppressive drugs
          The provision would eliminate the current time
    limitations on the coverage of immunosuppressive drugs for
    beneficiaries would have received a covered organ transplant.
    The provision would apply to drugs furnished, on or after the
    date enactment.
    Section 114. Imposition of billings limits on drugs
          The provision would specify that payment for drugs under
    Part B must be made on the basis of assignment.
    Section 115. Waiver of 24-month waiting period for Medicare coverage of
            individuals disabled with amyotrophic lateral sclerosis (ALS)
          The provision would waive the 24-month waiting period
    (otherwise required for an individual to establish Medicare
    eligibility on the basis of a disability) for persons medically
    determined to have amyotrophic lateral sclerosis (ALS). The
    provision would be effective July 1, 2001.

                 subtitle C--demonstration projects and studies

    Section 121. Demonstration project for disease management for severely
            chronically ill Medicare beneficiaries
          The Secretary would be required to conduct a
    demonstration project to illustrate the impact on costs and
    health outcomes of applying disease management to Medicare
    beneficiaries with diagnosed, advanced-stage congestive heart
    failure, diabetes, or coronary heart disease. Up to 30,000
    beneficiaries would be able to enroll, on a voluntary basis,
    for disease management services related to their chronic health
    condition. In addition, contractors providing disease
    management services would be responsible for providing
    beneficiaries enrolled in the project with prescription drugs.
    Section 122. Cancer prevention and treatment demonstration for ethnic
            and racial minorities
          The provision would require the Secretary to conduct
    demonstration projects for the purpose of developing models and
    evaluating methods that improve the quality of cancer
    prevention services, improve clinical outcomes, eliminates
    disparities in the rate of preventive screening measures, with
    promote collaboration with community-based organizations for
    ethnic and racial minorities.
    Section 123. Study on Medicare coverage of routine thyroid screening
          The provision would require the Secretary to request the
    National Academy of Sciences, and as appropriate in conjunction
    with the United States Preventive Services Task Force, to
    analyze the addition of routine thyroid screening under
    Medicare. The analysis would consider the short term and long
    term benefits, and cost to Medicare, of adding such coverage
    for some or all beneficiaries.
    Section 124. MedPAC study on consumer coalitions
          The provision would require MedPAC to conduct a study
    that examines the use of consumer coalitions in the marketing
    of Medicare+Choice plans. A consumer coalition would be defined
    as a non-profit community-based organization that provides
    information to beneficiaries about their health options under
    Medicare and negotiates with Medicare+Choice plans on benefits
    and premiums for beneficiaries who are members of the coalition
    or otherwise affiliated with it.
    Section 125. Study on limitation on State payment for Medicare cost-
            sharing affecting access to services for qualified Medicare
            beneficiaries
          The provision would require the Secretary of HHS to
    conduct a study to determine if access to certain services
    (including mental health services) has been affected by a
    specific provision in law. The provision specifies that states
    are not required to pay Medicare cost-sharing charges for QMBs
    to the extent these payments would result in a total payment in
    excess of the Medicaid level.
    Section 126. Studies on preventive interventions in primary care for
            older Americans
          The provision would require the Secretary, acting through
    the United States Preventive Services Task Force, to conduct a
    series of studies designed to identify preventive interventions
    in primary care for older Americans.
    Section 127. MedPAC study and report on Medicare coverage of cardiac
            and pulmonary rehabilitation and therapy services
          The provision would require MedPAC to conduct a study on
    coverage of cardiac and pulmonary rehabilitation therapy
    services under Medicare.
    Section 128. Lifestyle modification program demonstration
          The provision modifies the current medicare demonstration
    project, known as the Lifestyle Modification Program. It would
    extend the project to 4 years and to assure 1,800 beneficiaries
    complete the Program in order to provide a statistically valid
    sample. The provision requires a study of its cost-
    effectiveness and provides for an initial report after 900
    beneficiaries complete the Program and a final report after
    1,800 beneficiaries complete the Program.

                    TITLE II--RURAL HEALTH CARE IMPROVEMENTS

                subtitle A--critical access hospital provisions

    Section 201. Clarification of no beneficiary cost-sharing for clinical
            diagnostic laboratory tests furnished by critical access
            hospitals
          Effective for services furnished on or after the
    enactment of BBRA99, Medicare beneficiaries would not be liable
    for any coinsurance, deductible, copayment, or other cost
    sharing amount with respect to clinical diagnostic laboratory
    services furnished as an outpatient critical access hospital
    (CAH) service. Conforming changes that clarify that CAHs are
    reimbursed on a reasonable cost basis for outpatient clinical
    diagnostic laboratory services are also included.
    Section 202. Assistance with fee schedule payment for professional
            services under all-inclusive rate
          Effective for items and services furnished on or after
    July 1, 2001, Medicare would pay a CAH for outpatient services
    based on reasonable costs or, at the election of an entity,
    would pay the CAH a facility fee based on reasonable costs plus
    an amount based on 115% of Medicare's fee schedule for
    professional services.
    Section 203. Exemption of critical access hospital swing beds from SNF
            PPS
          Swing beds in critical access hospitals (CAHs) would be
    exempt from the SNF prospective payment system. CAHs would be
    paid for covered SNF services on a reasonable cost basis.
    Section 204. Payment in critical access hospitals for emergency room
            on-call physicians
          When determining the allowable, reasonable cost of
    outpatient CAH services, the Secretary would recognize amounts
    for the compensation and related costs for on-call emergency
    room physicians who are not present on the premises, are not
    otherwise furnishing services, and are not on-call at any other
    provider or facility. The Secretary would define the reasonable
    payment amounts and the meaning of the term ``on-call.'' The
    provision would be effective for cost reporting periods
    beginning on or after October 1, 2001.
    Section 205. Treatment of ambulance services furnished by certain
            critical access hospitals
          Ambulance services provided by a critical access hospital
    (CAH) or provided by an entity that is owned or operated by a
    CAH would be paid on a reasonable cost basis if the CAH or
    entity is the only provider or supplier of ambulance services
    that is located within a 35-mile drive of the CAH. The
    provision would be effective for services furnished on or after
    enactment.
    Section 206. GAO study on certain eligibility requirements for critical
            access hospitals
          Within one year of enactment, GAO would be required to
    conduct a study on the eligibility requirements for critical
    access hospitals (CAHs) with respect to limitations on average
    length of stay and number of beds, including an analysis of the
    feasibility of having a distinct part unit as part of a CAH and
    the effect of seasonal variations in CAH eligibility
    requirements. GAO also would be required to analyze the effect
    of seasonal variations in patient admissions on critical access
    hospital eligibility requirements with respect to limits on
    average annual length of stay and number of beds.

                  subtitle b--other rural hospitals provisions

    Section 211. Treatment of rural disproportionate share hospitals
          For discharges occurring on or after April 1, 2001, all
    hospitals would be eligible to receive DSH payments when their
    DSH percentage (threshold amount) exceeds 15%. The DSH payment
    formulas for sole community hospitals (SCHs), rural referral
    centers (RRCs), rural hospitals that are both SCHs and RRCs,
    small rural hospitals and urban hospitals with less than 100
    beds would be modified.
    Section 212. Option to base eligibility for Medicare dependent, small
            rural hospital program on discharges during 2 of the 3 most
            recent audited cost reporting periods
          An otherwise qualifying small rural hospital would be
    able to be classified as an MDH if at least 60% of its days or
    discharges were attributable to Medicare Part A beneficiaries
    in at least two of the three most recent audited cost reporting
    periods for which the Secretary has a settled cost report.
    Section 213. Extension of option to use rebased target amounts to all
            sole community hospitals
          Any SCH would be able to elect payment based on hospital
    specific, updated FY1996 costs if this target amount resulted
    in higher Medicare payments. There would be a transition period
    with Medicare payment based completely on updated FY1996
    hospital specific costs for discharges occurring after FY2003.
    Section 214. MedPAC analysis of impact of volume on per unit cost of
            rural hospitals with psychiatric units
          MedPAC would be required to report on the impact of
    volume on the per unit cost of rural hospitals with psychiatric
    units and include in its report a recommendation on whether
    special treatment is warranted.

                       subtitle c--other rural provisions

    Section 221. Assistance for providers of ambulance services in rural
            areas
          The provision would make additional payments to providers
    of ground ambulance services for trips, originating in rural
    areas, that are greater than 17 miles and up to 50 miles. The
    payments would be made for services furnished on or after July
    1, 2001 and before January 1, 2004. The provision would require
    the Comptroller General to conduct a study to examine both the
    costs of efficiently providing ambulance services for trips
    originating in rural areas and the means by which rural areas
    with low population densities can be identified for the purpose
    of designating areas in which the costs of ambulance services
    would be expected to be higher. The Comptroller General would
    submit a report to Congress by June 30, 2002 on the results of
    the study, together with recommendations on steps that should
    be taken to assure access to ambulance services for trips
    originating in rural areas. The Secretary would be required to
    take these findings into account when establishing the fee
    schedule, beginning with 2004.
    Section 222. Payment for certain physician assistant services
          This provision would give permanent authority to
    physician assistants who owned rural health clinics that lost
    their designation as such to bill Medicare directly.
    Section 223. Expansion of Medicare payment for telehealth services
          The provision would establish revised payment provisions,
    effective no later than October 1, 2001, for services that are
    provided via a telecommunications system by a physician or
    practitioner to an eligible beneficiary in a rural area. The
    Secretary would be required to make payments for telehealth
    services to the physician or practitioner at the distant site
    in an amount equal to the amount that would have been paid to
    such physician or practitioner if the service had been
    furnished to the beneficiary without the use of a
    telecommunications system. A facility fee would be paid to the
    originating site. Originating sites would include a physician
    or practitioner office, a critical access hospital, a rural
    health clinic, a Federally qualified health center or a
    hospital. The Secretary would be required to conduct a study,
    and submit recommendations to Congress, that identify
    additional settings, sites, practitioners and geographic areas
    that would be appropriate for telehealth services. Entities
    participating in Federal demonstration projects approved by, or
    receiving funding from, the Secretary as of December 31, 2000
    would be qualified sites.
    Section 224. Expanding access to rural health clinics
          All hospitals of less than 50 beds that own rural health
    clinics would be exempt from the per visit limit.
    Section 225. MedPAC study on low-volume, isolated rural health
            providers
          MedPAC would be required to study the effect of low
    patient and procedure volume on the financial status and
    Medicare payment methods for hospital outpatient services,
    ambulance services, hospital inpatient services, skilled
    nursing facility services, and home health services in isolated
    rural health care providers.

                    TITLE III--PROVISIONS RELATING TO PART A

                    SUBTITLE A--INPATIENT HOSPITAL SERVICES

    Section 301. Revision of acute care hospital payment update for 2001
          All hospitals would receive the full market basket index
    (MBI) as an update for FY2001. In order to implement this
    increase for hospitals other than sole community hospitals
    (SCH), those hospitals would receive the MBI minus 1.1
    percentage points (the current statutory provision) for
    discharges occurring on or after October 1, 2000 and before
    April 1, 2001; these non-SCH hospitals would receive the MBI
    plus 1.1 percentage points for discharges occurring on or after
    April 1, 2001 and before October 1, 2001. As indicated by
    section 547(a), this payment increase would not apply to
    discharges occurring after FY2001. For FY2002 and FY2003,
    hospitals would receive the MBI minus .55 percentage points.
    For FY2004 and subsequently, hospitals would receive the MBI.
          The Secretary is directed to consider the prices of blood
    and blood products purchased by hospitals in the next rebasing
    and revision of the hospital market basket to determine whether
    those prices are adequately reflected in the market basket
    index. MedPAC is directed to conduct a study on increased
    hospital costs attributable to complying with new blood safety
    measures and providing such services using new technologies
    among other issues.
          For discharges occurring on or after October 1, 2001, the
    Secretary would be able to adjust the standardized amount in
    future fiscal years to correct for changes in the aggregate
    Medicare payments caused by adjustments to the DRG weighting
    factors in a previous fiscal year (or estimates that such
    adjustments for a future fiscal year) that did not take into
    account coding improvements or changes in discharge
    classifications and did not accurately represent increases in
    the resource intensity of patients treated by PPS hospitals.
    Section 302. Additional modification in transition for indirect medical
            education (IME) percentage adjustment
          Teaching hospitals would receive 6.25% IME payment
    adjustment (for each 10% increase in teaching intensity) for
    discharges occurring on or after October 1, 2000 and before
    April 1, 2001. The IME adjustment would increase to 6.75% for
    discharges on or after April 1, 2001 and before October 1,
    2001. As indicated in Section 547(a), the payment increase
    would not apply to discharges after FY2001. The IME adjustment
    would be 6.5% in FY2002 and 5.5% in FY2003 and in subsequent
    years.
    Section 303. Decrease in reductions for disproportionate share hospital
            (DSH) payments
          Reductions in the DSH payment formula amounts would be 2%
    in FY2001, 3% in FY2002, and 0% in FY2003 and subsequently. To
    implement the FY2001 provision, DSH amounts for discharges
    occurring on or after October 1, 2000 and before April 1, 2001,
    would be reduced by 3% which was the reduction in effect prior
    to enactment of this provision. DSH amounts for discharges
    occurring on or after April 1, 2001 and before October 1, 2001
    would be reduced by only 1 percentage point. As indicated by
    Section 547(a), this payment adjustment would not apply to
    discharges after FY2001.
    Section 304. Wage index improvements
          For FY2001 or any fiscal year thereafter, a Medicare
    Geographic Classification Review Board (MGCRB) decision to
    reclassify a prospective payment system hospital for use of a
    different area's wage index would be effective for 3 fiscal
    years. The Secretary would establish procedures whereby a
    hospital could elect to terminate this reclassification
    decision before the end of such period. For FY2003 and
    subsequently, MGCRB would base any comparison of the average
    hourly wage of the hospital with the average hourly wage for
    hospitals in the area using data from each of the two
    immediately preceding surveys as well as data from the most
    recently published hospital wage survey.
          The Secretary would establish a process which would first
    be available for discharges occurring on or after October 1,
    2001 where a single wage index would be computed for all
    geographic areas in the state. If the Secretary applies a
    statewide geographic index, an application by an individual
    hospital would not be considered. The Secretary would also
    collect occupational data every three years in order to
    construct an occupational mix adjustment for the hospital area
    wage index. The first complete data collection effort would
    occur no later than September 30, 2003 for application
    beginning October 1, 2004.
    Section 305. Payment for inpatient services in rehabilitation hospitals
          Total payments for rehabilitation hospitals in FY2002
    would equal the amounts of payments that would have been made
    if the rehabilitation prospective payment system (PPS) had not
    been enacted. A rehabilitation facility would be able to make a
    one-time election before the start of the PPS to be paid based
    on a fully phased-in PPS rate.
    Section 306. Payment for inpatient services of psychiatric hospitals
          The provision would increase the incentive payments for
    psychiatric hospitals and distinct part units of 3% for cost
    reporting periods beginning on or after October 1, 2000.
    Section 307. Payment for inpatient services of long-term care hospitals
          For cost reporting periods beginning during FY2001, long
    term hospitals would have the national cap increased by 2% and
    the target amount increased by 25%. Neither these payments nor
    the increased bonus payments provided by BBRA 99 would be
    factored into the development of the prospective payment system
    (PPS) for long term hospitals. When developing the PPS for
    inpatient long term hospitals, the Secretary would be required
    to examine the feasibility and impact of basing payment on the
    existing (or refined) acute hospital DRGs and using the most
    recently available hospital discharge data. If the Secretary is
    unable to implement a long term hospital PPS by October 1,
    2002, the Secretary would be required to implement a PPS for
    these hospitals using the existing acute hospital DRGs that
    have been modified where feasible.

     subtitle b--adjustments to pps payments for skilled nursing facilities

    Section 311. Elimination of reduction in skilled nursing facility (SNF)
            market basket update in 2001
          The provision would modify the schedule and rates
    according to which federal per diem payments are updated. In
    FY2002 and FY2003 the updates would be the market basket index
    increase minus 0.5 percentage point. The update rate for the
    period October 1, 2000, through March 31, 2001, would be the
    market basket index increase minus 1 percentage point; the
    update rate for the period April 1, 2001, through September 30,
    2001, would be the market basket index increase plus one
    percentage point (this increase would not be included when
    determining payment rates for the subsequent period). Temporary
    increases in the federal per diem rates provided by BBRA 99
    would be in addition to the increases in this provision. By
    July 1, 2002, the Comptroller General would be required to
    submit a report to Congress on the adequacy of Medicare
    payments to SNFs, taking into account the role of private
    payers, medicaid, and case mix on the financial performance of
    SNFs and including an analysis, by RUG classification, of the
    number and characteristics of such facilities. By January 1,
    2005, the Secretary would be required to submit a report to
    Congress on alternatives for classification of SNF patients.
    Section 312. Increase in nursing component of PPS Federal rate
          The provision would increase the nursing component of
    each RUG by 16.66 percent over current law for SNF care
    furnished after April 1, 2001, and before October 1, 2002.
          The Comptroller General would be required to conduct an
    audit of nurse staffing ratios in a sample of SNFs and to
    report to Congress by August 1, 2002, on the results of the
    audit of nurse staffing ratios and recommend whether the
    additional 16.66 percent payment should be continued.
    Section 313. Application of SNF consolidated billing requirement
            limited to part A covered stays
          Effective January 1, 2001, the provision would limit the
    current law consolidated billing requirement to services and
    items furnished to SNF residents in a Medicare part A covered
    stay and to therapy services furnished in part A and part B
    covered stay.
          The Inspector General of HHS would be required to monitor
    part B payments to SNFs on behalf of residents who are not in a
    part A covered stay.
    Section 314. Adjustment of rehabilitation RUGS to correct anomaly in
            payment rates
          Effective for skilled nursing facility (SNF) services
    furnished on or after April 1, 2002, the provision would
    increase by 6.7 percent certain federal per diem payments to
    ensure that Medicare payments for SNF residents with ``ultra
    high'' and ``high'' rehabilitation therapy needs are
    appropriate in relation to payments for residents needing
    ``medium'' or ``low'' levels of therapy. The 20 percent
    additional payment that was provided in BBRA 99 for certain
    RUGS is removed to make this provision budget neutral.
          The Inspector General of HHS would be required to review
    and report to Congress by October 1, 2001, regarding whether
    the RUG payment structure as in effect under the BBRA 99
    includes incentives for the delivery of inadequate care.
    Section 315. Establishment of process for geographic reclassification
          The provision would permit the Secretary to establish a
    process for geographic reclassification of skilled nursing
    facilities based upon the method used for inpatient hospitals.
    The Secretary may implement the process upon completion of the
    data collection necessary to calculate an area wage index for
    workers in skilled nursing facilities.

                            subtitle c--hospice care

    Section 321. 5 Percent increase in payment base
          The provision would increase, effective April 1, 2001,
    the base Medicare daily payment rates for hospice care for
    fiscal year 2001 by 5 percentage points over the rates
    otherwise in effect. This increase would continue to apply
    after fiscal year 2001. The temporary increase in payment rates
    provided in BBRA 99 for FY2001 and FY2002 (.5 percent and .75
    percent, respectively) would not be affected. In addition, the
    hospice wage index for one Metropolitan Statistical Area for
    fiscal year 2000 would be adjusted.
    Section 322. Clarification of physician certification
          Effective for certifications of terminal illness made on
    or after the date of enactment, the provision would modify
    current law to specify that the physician's or hospice medical
    director's certification of terminal illness would be based on
    his/her clinical judgment regarding the normal course of the
    individual's illness. The Secretary would be required to study
    and report to Congress within 2 years of enactment on the
    appropriateness of certification of terminally ill individuals
    and the effect of this provision on such certification.
    Section 323. MedPAC report on access to, and use of, hospice benefit
          The provision would require MedPAC to examine the factors
    affecting the use of Medicare hospice benefits, including delay
    of entry into the hospice program and urban and rural
    differences in utilization rates. The provision would require a
    report on the study to be submitted to Congress 18 months after
    enactment.

                          subtitle d--other provisions

    Section 331. Relief from Medicare Part A late enrollment penalty for
            group buy-in for state and local retirees
          The provision would exempt certain state and local
    retirees, retiring prior to January 1, 2002, from the Part A
    delayed enrollment penalties. These would be groups of persons
    for whom the state or local government elected to pay the
    delayed Part A enrollment penalty for life. The amount of the
    delayed enrollment penalty which would otherwise be assessed
    would be reduced by an amount equal to the total amount of
    Medicare payroll taxes paid by the employee and the employer on
    behalf of the employee. The provision would apply to premiums
    for months beginning with January 1, 2002.

                    TITLE IV--PROVISIONS RELATING TO PART B

                    subtitle a--hospital outpatient services

    Section 401. Revision of hospital outpatient PPS payment update
          The provision would modify the current law update rates
    applicable to the hospital outpatient PPS by providing in
    FY2001 an update equal to the full rate of increase in the
    market basket index. As under current law, the increase in
    FY2002 would be the market basket index increase minus one
    percentage point.
          A special rule applies to the OPD PPS rates in 2001: For
    the period January 2, 2001 through March 31, 2001, the PPS
    amounts shall be those in effect on the day before
    implementation of the new law. For the periods April 1, 2001,
    through December 31, 2001, the PPS amounts in effect during the
    prior period shall be increased by 0.32%.
          Effective as if enacted with BBA 97, if the Secretary
    determines that updates to the adjustment factor used to
    convert the relative utilization weights under the PPS into
    payment amounts have, or are likely to, result in hospitals'
    changing their coding or classification of covered services,
    thereby changing aggregate payments, the Secretary would be
    authorized to adjust the conversion factor in later years to
    eliminate the effect of coding or classification changes.
    Section 402. Clarifying process and standards for determining
            eligibility of devices for pass-through payments under hospital
            outpatient PPS
          The provision would modify the procedures and standards
    by which certain medical devices are categorized and determined
    eligible for pass-through payments under the PPS. Through
    public rule-making procedures, the Secretary would be required
    to establish criteria for defining special payment categories
    under the PPS for new medical devices. The Secretary would be
    required to promulgate, through the use of a program
    memorandum, initial categories that would encompass each of the
    individual devices that the Secretary had designated as
    qualifying for the pass-through payments to date. In addition,
    similar devices not so designated because they were payable
    under Medicare prior to December 31, 1996, would also be
    included in initial categories. The Secretary would be required
    to create additional new categories in the future to
    accommodate new technologies meeting the ``not insignificant
    cost'' test established in BBRA 99.
          Once the categories were established, pass-through
    payments currently authorized under section 1833(t)(b) of the
    Social Security Act would proceed on a category-specific,
    rather than device-specific basis. These payments would be
    designated as ``category-based pass-through payments.'' These
    payments would be continued to be made for the 2 to 3 years
    payment period originally specified in BBRA 99, and, for each
    given category, would begin when the first such payment is made
    for any device included in a specified category. At the
    conclusion of this transitional payment period, categories
    would sunset and payment for the device would be included in
    the underlying PPS payment for the related service.
    Section 403. Application of OPD PPS transitional corridor payments to
            certain hospitals that did not submit a 1996 cost report
          Effective as if enacted with BBRA 99, the provision would
    modify current law as enacted in BBA 99 to enable all
    hospitals, not just those hospitals filing 1996 cost reports,
    to be eligible for transitional payments under the PPS.
    Section 404. Application of rules for determining provider-based status
            for certain entities
          The provision would grandfather existing arrangements
    whereby certain entities (such as outpatient clinics, skilled
    nursing facilities, etc.) are considered ``provider-based''
    entities, meaning they are affiliated financially and
    clinically with a main hospital. Existing provider-based status
    designations would continue for two years beginning October 1,
    2000. If a facility or organization requests approval for
    provider-based status during the period October 1, 2000,
    through September 31, 2002, it could not be treated as if it
    did not have such status during the period of time the
    determination is pending. In making such a status determination
    on or after October 1, 2000, HCFA would treat the applicant as
    satisfying any requirements or standards for geographic
    location if it satisfied geographic location requirements in
    regulations or is located not more than 35 miles from the main
    campus of the hospital.
          An applicant facility or organization would be treated as
    satisfying all requirements for provider-based status if it is
    owned or operated by a unit of State or local government or is
    a public or private nonprofit corporation that is formally
    granted governmental powers by a unit of State or local
    government, or is a private hospital that, under contract,
    serves certain low income households or has a certain
    disproportionate share adjustment.
          These provisions are in effect during a two-year period
    beginning on October 1, 2000.
    Section 405. Treatment of children's hospitals under prospective
            payment system
          The BBRA 99 provides special ``hold harmless'' payments
    to ensure that cancer hospitals would receive no less under the
    hospital outpatient PPS than they would have received, in
    aggregate, under the ``pre-BBA'' system, that is, the pre-PPS
    payment system. Effective as if included in the BBRA 99, the
    provision would extend this hold harmless protection to
    children's hospitals.
    Section 406. Inclusion of temperature monitored cryoablation
          The provision would include temperature monitored
    cryoablation as part of the transitional pass-through for
    certain medical devices, drugs, and biologicals under the
    hospital outpatient prospective payment system, effective April
    1, 2001.

             subtitle b--provisions relating to physicians services

    Section 411. GAO studied relating to physicians' services
          The provision would require the GAO to conduct a study on
    the appropriateness of furnishing in physicians offices
    specialist services (such as gastrointestinal endoscopic
    physicians services) which are ordinarily furnished in hospital
    outpatient departments. The GAO would not be required to study
    the refinements to the practice expense relative value made
    during the transition to the resource-based system.
    Section 412. Physician group practice demonstration
          The provision would require the Secretary to conduct
    demonstration projects to test, and if proven effective, expand
    the use of incentives to health care groups participating under
    Medicare. Such incentives would be designed to encourage
    coordination of care furnished under Medicare Parts A and B by
    institutional and other providers and practitioners; to
    encourage investment in administrative structures and processes
    to encourage efficient service delivery; and to reward
    physicians for improving health outcomes. The Secretary would
    establish for each group participating in a demonstration, a
    base expenditure amount and an expenditure target (reflecting
    base expenditures adjusted for risk and expected growth rates).
    The Secretary would pay each group a bonus for each year equal
    to a portion of the savings for the year relative to the
    target. In addition, at such time as the Secretary had
    developed appropriate criteria, the Secretary would pay an
    additional bonus related to process and outcome improvements.
    Total payments under demonstrations could not exceed what the
    Secretary estimates would be paid in the absence of the
    demonstration program.
    Section 413. Study on enrollment procedures for groups that retain
            independent contractor physicians
          The provision would require the Comptroller General to
    conduct a study of the current Medicare enrollment process for
    groups that retain independent contractor physicians;
    particular emphasis would be placed on hospital-based
    physicians, such as emergency department staffing groups.

                           subtitle c--other services

    Section 421. One-year extension of moratorium on therapy caps; report
            on standards for supervision of physical therapy assistants
          The provision would extend the moratorium on the physical
    therapy and occupational therapy caps for 1 year through 2002;
    it would also extend the requirement for focused reviews of
    therapy claims for the same period. The Secretary would be
    required to conduct a study on the implications of eliminating
    the ``in the room'' supervision requirements for Medicare
    payment for physical therapy assistants who are supervised by
    physical therapists and the implications of this requirement on
    the physical therapy cap.
    Section 422. Update in renal dialysis composite rate
          The provision would specify that the composite rate
    payment for renal dialysis service would be increased by 2.4%
    for 2001. The provision would require the Secretary to collect
    data and develop an end-stage renal disease (ESRD) market
    basket whereby the Secretary could estimate before the
    beginning of a year the percentage increase in costs for the
    mix of labor and non-labor goods and services included in the
    composite rate. The Secretary would report to Congress on the
    index together with recommendations on the appropriateness of
    an annual or periodic update mechanism for dialysis services.
    The Comptroller General would be required to study the access
    of beneficiaries to dialysis services. There is a hold harmless
    provision for facilities who received exceptions for their 2000
    rates. In addition, facilities which did not apply for an
    exception in 2000 would have the opportunity to apply during
    the first 6 months of 2001. Exceptions granted under the hold
    harmless or granted during the extension period, would continue
    to apply so long as they provide for higher payment rates. The
    provision would specify that for the period January 1, 2001-
    March 31, 2001, the applicable composite rate is the rate in
    effect before enactment of this provision. The rate in effect
    for the period April 1, 2001-December 31, 2001 is the rate
    established under this section increased by a transitional
    percentage allowance equal to 0.39 percent.
    Section 423. Payment for ambulance services
          The provision would provide for the full inflation update
    in ambulance payments for 2001. It would also specify that any
    phase-in of the ambulance fee schedule would provide for full
    payment of national mileage rates in states where separate
    mileage payments were not made prior to implementation of the
    fee schedule. The provision would specify that for the period
    January 1, 2001-June 30, 2001, the inflation update would be
    that determined prior to enactment of this provision. For
    services furnished from July 1, 2001-December 31, 2001, the
    update would be 4.7%. The provision relating to mileage
    payments would be effective July 1, 2001.
    Section 424. Ambulatory surgical centers
          The provision would delay implementation of proposed
    regulatory changes to the ambulatory payment classification
    system, which are based on 1994 cost data, until January 1,
    2002. At that time, such changes would be phased in over 4
    years: in the first year the payment amounts would be 25
    percent of the revised rates and 75 percent of the prior system
    rates; in the second year payments would be 50 percent of the
    revised rates and 50 percent of the prior system rates, etc.
    The provision also requires that the revised system, based on
    1999 (or later) cost data, be implemented January 1, 2003. (The
    phase-in of the revised system and 1994 data would end when the
    system with 1999 or later data was implemented.)
    Section 425. Full update for durable medical equipment
          The provision would modify updates to payments for
    durable medical equipment. For 2001, the payments for covered
    DME would be increased by the full increase in the consumer
    price index for urban consumers (CPI-U) during the 12-month
    period ending June 2000. In general, in 2002 and thereafter,
    the annual update would equal the full increase in the CPI-U
    for the 12 months ending the previous June. The provision
    specify that for the period January 1, 2001, through June 30,
    2000, the applicable amounts paid for DME are the amounts in
    effect before enactment of the provision. The amounts in effect
    for the period July 1, 2001, through December 31, 2001, would
    be the amounts established under this section increased by a
    transitional allowance of 3.28%.
    Section 426. Full update for orthotics and prosthetics
          The provision would modify updates to payments for
    orthotics and prosthetics. In 2000, the rates would be
    increased by one percent. In 2001, the increase would be equal
    to the percentage increase in the CPI-U during the 12-month
    period ending with June, 2000. For 2002, payments would be
    increased by one percent over the prior year's amounts. The
    provision would specify that for the period January 1, 2001,
    through June 30, 2001, the applicable amounts paid for these
    items would be the amounts in effect before enactment of this
    provision. The amounts in effect for the period July 1, 2001,
    through December 31, 2001, would be the amounts established
    under this section increased by a transitional allowance of
    2.6%.
    Section 427. Establishment of special payment provisions and
            requirements for prosthetics and certain custom fabricated
            orthotic items
          Under the provision, certain prosthetics or custom
    fabricated orthotics would be covered by Medicare if furnished
    by a qualified practitioner and fabricated by a qualified
    practitioner or qualified supplier. The Secretary would be
    required to establish a list of such items in consultation with
    experts. Within one year of enactment, the Secretary would be
    required to promulgate regulations to provide these items,
    using negotiated rulemaking procedures.
          Not later than 6 months from enactment, the Comptroller
    General would be required to submit to Congress a report on the
    Secretary's compliance with the Administrative Procedures Act
    with regard to HCFA Ruling 96-1; certain impacts of that
    ruling; the potential for fraud and abuse in provision of
    prosthetics and orthotics under special payment rules and for
    custom fabricated items; and the effect on Medicare and
    Medicaid payments if that ruling were overturned.
    Section 428. Replacement of prosthetic devices and parts
          The provision would authorize Medicare coverage for
    replacement of artificial limbs, or replacement parts for such
    devices, if ordered by a physician for specified reasons.
    Effective for items furnished on or after enactment, coverage
    would apply to prosthetic items 3 or more years old, and would
    supersede any 5-year age rules for such item under current law.
    Section 429. Revised part B payment for drugs and bioliogicals and
            related services
          The provision would require the Comptroller General to
    study and submit a report to Congress and the Secretary on the
    reimbursement for drugs and biologicals and for related
    services under Medicare; the report would include specific
    recommendations for revised payment methodologies. The
    Secretary would revise the current payment methodologies for
    covered drugs and biologicals and related services based on
    these recommendations; however, total payments under the
    revised methodologies could not exceed the aggregate payments
    the Secretary estimates would have been made under the current
    law. The provision would establish a moratorium on reductions
    in payment rates, in effect on January 1, 2001, until the
    Secretary reviewed the GAO report.
    Section 430. Contrast enhanced diagnostic procedures under hospital
            prospective payment system
          The provision would require the Secretary to create under
    the hospital outpatient PPS additional and separate groups of
    covered services which include procedures that utilize contrast
    agents and would include contrast agents within the definition
    of ``drugs'' for purposes of the medicare title. The provision
    would apply to items and services furnished on or after July 1,
    2001.
    Section 431. Qualifications for community mental health centers
          The provision would clarify the qualifications for
    community mental health centers providing partial
    hospitalization services under Medicare.
    Section 432. Modification of Medicare billing requirements for certain
            Indian providers
          The provision would authorize hospitals and free-standing
    ambulatory care clinics of the Indian Health Service or
    operated by a tribe or tribal organization to bill Medicare
    Part B for certain services furnished at the direction of the
    hospital or clinic. Services covered under the provision are
    those furnished under the physician fee schedule, and services
    furnished by a practitioner or therapist under a fee schedule.
    The provision would be effective July 1, 2001.
    Section 433. GAO study on coverage of surgical first assisting services
            of certified registered nurse first assistants
          The provision would require the Comptroller General to
    conduct a study on the effect on both the program and
    beneficiaries of covering surgical first assisting services of
    certified registered nurse first assistants.
    Section 434. MedPAC study and report on Medicare reimbursement for
            services provided by certain providers
          The provision would require MedPAC to conduct a study on
    the appropriateness of current payment rates for services
    provided by a certified nurse midwife, physician assistant,
    nurse practitioner, and clinical nurse specialist, including
    specifically for orthopedic physician assistants.
    Section 435. MedPAC study and report on Medicare coverage of services
            provided by certain non-physician providers
          The provision would require MedPAC to conduct a study to
    determine the appropriateness of Medicare coverage of the
    services provided by a surgical technologist, marriage
    counselor, pastoral care counselor, and licensed professional
    counselor of mental health.
    Section 436. GAO study and report on the costs of emergency and medical
            transportation services
          The provision would require the Comptroller General to
    conduct a study of the costs of providing emergency and medical
    transportation services across the range of acuity levels of
    conditions for which such transportation services are provided.
    Section 437. GAO studies and reports on Medicare payments
          The provision would require the Comptroller General to
    conduct a study on the post-payment audit process for
    physicians services. The study would include the proper level
    of resources HCFA should devote to educating physicians
    regarding coding and billing, documentation requirements, and
    calculation of overpayments. The Comptroller General would also
    be required to conduct a study of the aggregate effects of
    regulatory, audit, oversight and paperwork burdens on
    physicians and other health care providers participating in
    Medicare.
    Section 438. MedPAC study on access to outpatient plan management
            services
          The provision would require MedPAC to conduct a study on
    the barriers to coverage and payment for outpatient
    interventional pain medicine procedures under Medicare.

                  TITLE V--PROVISION RELATING TO PARTS A AND B

                        subtitle a--home health services

    Section 501. 1-Year additional delay in application of 15 percent
            reduction on payment limits of home health services
          The provision would require that the aggregate amount of
    Medicare payments to home health agencies in the second year of
    the PPS (FY 2002) shall be the aggregate payments in the first
    year of the PPS, updated by the market basket index (MBI)
    increase minus 1.1 percentage points. The 15 percent reduction
    to aggregate PPS amounts, which, under current law, would go
    into effect October 1, 2001, would be delayed until October 1,
    2002.
          The Comptroller General (rather than the Secretary) would
    be required to submit, by April 1, 2002, a report analyzing the
    need for the 15 percent or other reduction.
          If the Secretary determines that updates to the PPS
    system for a previous fiscal year (or estimates of such
    adjustments for a future fiscal year) did (or are likely to)
    result in a change in aggregate payments due to changes in
    coding or classification of beneficiaries' service needs that
    do not reflect real changes in case mix, effective for home
    health episodes concluding on or after October 1, 2001, the
    Secretary may adjust PPS amounts to eliminate the effect of
    such coding or classification changes.
    Section 502. Restoration of full home health market basket update for
            home health services for fiscal year 2001
          The provision would modify the home health PPS updates.
    During the period October 1, 2000, through March 31, 2001, the
    rates promulgated in the home health PPS regulations on July 3,
    2000, would apply for 60-day episodes of care (or visits)
    ending in that period. For the period April 1, 2001, through
    September 31, 2001, those rates would be increased by 2.2
    percent for 60-day episodes (or visits) ending in that time
    period. This increase would be included in determining
    subsequent payment amounts.
    Section 503. Temporary two-month periodic interim payment
          The provision would provide for a one-time payment for
    certain home health agencies that were receiving periodic
    interim payments under current law. Home health agencies that
    were receiving such payments as of September 30, 2000, receive
    a one-time payment equal to four times the last 2-week payment
    the agency received before implementation of the home health
    PPS on October 1, 2000. The amounts would be included in the
    agency's last settled cost report before implementation of the
    PPS.
    Section 504. Use of telehealth in delivery of home health services
          The provision would clarify that the telecommunications
    provisions should not be construed as preventing a home health
    agency from providing a service, for which payment is made
    under the prospective payment system, via a telecommunications
    system, provided that the services do not substitute for ``in-
    person'' home health services ordered by a physician as part of
    a plan of care or are not considered a home health visit for
    purposes of eligibility or payment.
    Section 505. Study on costs to home health agencies of purchasing
            nonroutine medical supplies
          The provision would require that, not later than August
    15, 2001, the Comptroller General shall submit to Congress a
    report regarding the variation in prices home health agencies
    pay for nonroutine supplies, the volume of supplies used, and
    what effect the variations have on the provision of services.
    The Secretary would be required to make recommendations on
    whether Medicare payment for those supplies should be made
    separately from the home health PPS.
    Section 506. Treatment of branch offices; GAO study on supervision of
            home health care provided in isolated rural areas
          The provision would clarify that neither time nor
    distance between a home health agency parent office and a
    branch office shall be the sole determinant of a home health
    agency's branch office status. The Secretary would be
    authorized to include forms of technology in determining
    ``supervision'' for purposes of determining a home health
    agency's branch office status.
          Not later than January 1, 2002, the Comptroller General
    would be required to submit to Congress a report regarding the
    adequacy of supervision and quality of home health services
    provided by home health agency branch offices and subunits in
    isolated rural areas and to make recommendations on whether
    national standards for supervision would be appropriate in
    assuring quality.
    Section 507. Clarification of the homebound benefit
          The provision clarifies that the need for adult day care
    for a patient's plan of treatment does not preclude appropriate
    coverage for home health care for other medical conditions. The
    provision also clarifies the ability of homebound beneficiaries
    to attend religious services without being disqualified from
    receiving home health benefits.
    Section 508. Temporary increase for home health services furnished in a
            rural area
          For home health services furnished in certain rural areas
    during the 2-year period beginning April 1, 2001, Medicare
    payments are increased by 10%, without regard to budget
    neutrality for the overall home health prospective payment
    system. This temporary increase would not be included in
    determining subsequent payments.

                 subtitle b--direct graduate medical education

    Section 511. Increase in floor for direct graduate medical education
            payments
          A hospital's approved per resident amount for cost
    reporting periods beginning during FY 2002 would not be less
    than 85% of the locality adjusted national average per resident
    amount.
    Section 512. Change in distribution formula for Medicare+Choice related
            nursing and allied health education costs
          A hospital would receive nursing and allied health
    payments for Medicare managed care enrollees based on its per
    day cost of allied and nursing health programs and number of
    days attributed to Medicare enrollees in comparison to that in
    all other hospitals. The provision would be effective for
    portions of cost reporting periods occurring on or after
    January 1, 2001.

          subtitle c--changes in medicare coverage and appeals process

    Section 521. Revisions to Medicare appeals process
          The provision would modify the Medicare appeals process.
    Generally, initial determinations by the Secretary would be
    concluded no later than 45 days from the date the Secretary
    received a claim for benefits. Any individual dissatisfied with
    the initial determination would be entitled to a
    redetermination by the carrier or fiscal intermediary would
    made the initial determination. Such redetermination would be
    required to be completed within 30 days of a beneficiary's
    request. Beneficiaries could appeal the outcome of a
    redetermination by seeking a reconsideration. Generally, a
    request for a reconsideration must be initiated no later than
    180 days after the date the individual receives the notice of
    an adverse redetermination. In addition, if contested amounts
    are greater than $100, an individual would be able to appeal an
    adverse reconsideration decision by requesting a hearing by the
    Secretary (first for a hearing by an administrative law judge,
    then in certain circumstances, for a hearing before the
    Department of Appeals Board). If the dispute is not
    satisfactorily resolved through this administrative process,
    and if contested amounts are greater than $1,000, the
    individual would be able to request judicial review of the
    Secretary's final decision. Aggregation of claims to meet these
    thresholds would be permitted.
          An expedited determination would be available for a
    beneficiary who receive notice: (1) that a provider plans to
    terminate services and a physician certifies that failure to
    continue the provisions of the services is likely to place the
    beneficiary's health at risk; or (2) that the provider plans to
    discharge the beneficiary.
          The Secretary would enter into 3-year contracts with at
    least 12 qualified independent contractors (QICs) to conduct
    reconsiderations. A QIC would promptly notify beneficiaries and
    Medicare claims processing contractors of its determinations. A
    beneficiary could appeal the decision of a QIC to an ALJ. In
    cases where the ALJ decision is not rendered within the 90-day
    deadline, the appealing party would be able to request a DAB
    hearing.
          The Secretary would perform outreach activities to inform
    beneficiaries, providers, and suppliers of their appeal rights
    and procedures. The Secretary would submit to Congress an
    annual report including information on the number of appeals
    for the previous year, identifying issues that require
    administrative or legislative actions, and including
    recommendations for change as necessary. The report would also
    contain an analysis of the consistency of the QIC
    determinations as well as the cause for any identified
    inconsistencies.
    Section 522. Revisions to Medicare coverage process
          The provision would clarify when and under what
    circumstances Medicare coverage policy could be challenged. An
    aggrieved party could file a complaint concerning a national
    coverage decision. Such complaint would be reviewed by the
    Department Appeals Board (DAB) of HHS. The provision would also
    permit an aggrieved party to file a complaint concerning a
    local coverage determination. In this case, the determination
    would be reviewed by an administrative law judge. If
    unsatisfied, complainants could subsequently seek review of
    such a local policy by the DAB. In both cases, a DAB decision
    would constitute final HHS action, and would be subject to
    judicial review. The Secretary would be required to implement
    DAB decisions and ALJ decisions (in the case of a local
    coverage policy) within 30 days. The provision would also
    permit an affected party to submit a request to the Secretary
    to issue a national coverage or noncoverage determination if
    one has not been issued. The Secretary would have 90 days to
    respond. HHS would be required to prepare an annual report on
    national coverage determinations.

                subtitle d--improving access to new technologies

    Section 531. Reimbursement improvements for new clinical laboratory
            tests and durable medical equipment
          The provision would specify that the national limitation
    amount for a new clinical laboratory test would equal 100% of
    the national median for such test. The Secretary would be
    required to establish procedures that permit public
    consultation for coding and payment determinations for new
    clinical diagnostic laboratory tests and new durable medical
    equipment. The Secretary would be required to report to
    Congress on specific procedures used to adjust payments for
    advanced technologies; the report would include recommendations
    for legislative changes needed to assure fair and appropriate
    payments.
    Section 532. Retention of HCPCS level III codes
          The provision would extend the time for the use of local
    codes (known as HCPCS level III codes) through December 21,
    2003; the Secretary would be required to make the codes
    available to the public.
    Section 533. Recognition of new medical technologies under Medicare
            inpatient hospital PPS
          The Secretary would be required to submit a report to
    Congress no later than April 1, 2001, on potential methods for
    more rapidly incorporating new medical services and
    technologies used in the inpatient setting in the clinical
    coding system used with respect to payment for inpatient
    services. The Secretary would be required to identify the
    preferred methods for expediting these coding modifications in
    her report, and to implement such method by October 1, 2001.
    Additional hospital payments could be made by means of a new
    technology group (DRG), an add-on payment, payment adjustment
    or other mechanism. However, separate fee schedules for
    additional new technology payments would not be permitted. The
    Secretary would implement the new mechanism on a budget neutral
    basis. The total amount of projected additional payments under
    the mechanism would be limited to an amount not greater than
    the Secretary's annual estimation of the costs attributable to
    the introduction of new technology in the hospital sector as a
    whole (as estimated for purposes of the annual hospital update
    calculation).

                          subtitle e--other provisions

    Section 541. Increase in reimbursement for bad debt
          Effective beginning with cost reports starting in FY2001,
    the provision would increase the percentage of the reasonable
    costs associated with beneficiaries' bad debt in hospitals that
    Medicare would reimburse to 70%.
    Section 542. Treatment of certain physician pathology services under
            Medicare
          The provision would permit independent laboratories,
    under a grandfather arrangement to continue, for a 2-year
    period (2001-2002), direct billing for the technical component
    of pathology services provided to hospital inpatients and
    hospital outpatients. The Comptroller General would be required
    to conduct a study of the effect of these provisions on
    hospitals and laboratories and access of fee-for-service
    beneficiaries to the technical component of physician pathology
    services. The report would include recommendations on whether
    the provisions should continue after the 2-year period for
    either (or both) inpatient and outpatient hospital services and
    whether the provision should be extended to other hospitals.
    Section 543. Extension of advisory opinion authority
          The Office of the Inspector General's authority to issue
    advisory opinions to outside parties who request guidance on
    the applicability of the anti-kickback statute, safe harbor
    provisions and other OIG health care fraud and abuse sanctions
    would be made permanent.
    Section 544. Change in annual MedPAC reporting
          The provision would delay the reporting date for the
    MedPAC report on issues affecting the Medicare program by 15
    days to June 15. The provision would also require record votes
    on recommendations contained both in this report and the March
    report on payment policies.
    Section 545. Development of patient assessment instruments
          The provision would require the Secretary to report to
    the Congress on the development of standard instruments for the
    assessment of the health and functional status of patients and
    make recommendations on the use of such standard instruments
    for payment purposes.
    Section 546. GAO report on impact of the Emergency Medical Treatment
            and Active Labor Act (EMTALA) on hospital emergency departments
          GAO would be required to evaluate the impact of the
    Emergency Medical Treatment and Active Labor Act on hospitals,
    emergency physicians, and on-call physicians covering emergency
    departments and to submit a report to Congress by May 1, 2001.
    Section 547. Clarification of application of temporary payment
            increases for 2001
          The special increases and adjustments of the acute
    hospital payment update, the indirect medical education
    adjustment, and the disproportionate share hospital adjustment
    that are in effect between April and October 2001 do not apply
    to discharges after FY 2001 and are not included in determining
    subsequent payments.
          Special update payments under the skilled nursing
    facility prospective payment system between April and October
    2001 would not apply to SNF services furnished after that
    period and would not be included when determining payments for
    the subsequent period.
          Special market basket update payments under the home
    health prospective payment system between April and October
    2001 would not be included in determining subsequent payments.
    Also, temporary payments to certain rural home health agencies
    from April 1, 2001, through September 30, 2002, would not be
    included in determining subsequent payments.

     TITLE VI--PROVISIONS RELATING TO PART C (MEDICARE+CHOICE PROGRAM) AND
                     OTHER MEDICARE MANAGED CARE PROVISIONS

                  subtitle a--medicare+choice payment reforms

    Section 601. Increase in minimum payment amount
          The provision would set the minimum payment amount for
    aged enrollees within the 50 states and the District of
    Columbia in a Metropolitan Statistical Area with a population
    of more than 250,000 at $525 in 2001. For all other areas
    within the 50 States and the District of Columbia, the minimum
    would be $475. For any area outside the 50 States and the
    District of Columbia, the $525 and $475 minimum amounts would
    also be applied, except that the 2001 minimum payment amount
    could not exceed 120% of the 2000 minimum payment amount. This
    increase would go into effect March 1, 2001.
    Section 602. Increase in minimum percentage increase
          This provision would apply a 3% minimum update in 2001
    and return to the current law minimum update of 2% thereafter.
    This increase would go into effect March 1, 2001.
    Section 603. Phase in of risk adjustment
          The current risk adjustment methodology (in which 10% of
    payments would be based on risk-adjusted inpatient data built
    on the 15 principal inpatient diagnostic cost groups (PIP-DCGs)
    and 90% would be adjusted solely using the older demographic
    method) would continue through 2003. Beginning in 2004, the
    risk adjustment would be based on data from inpatient hospital
    and ambulatory settings and the risk adjustment would be phased
    in at 30% for 2004, 50% for 2005, 75% for 2006, and 100% for
    2007 and subsequent years.
    Section 604. Transition to revised Medicare+Choice payment rates
          Within 2 weeks after the date of enactment of the Act,
    the Secretary must announce revised M+C capitation rates for
    2001, due to changes from this Act. Plans that previously
    provided notice of their intention to terminate contracts or
    reduce their service area for 2001 would have 2 weeks after
    announcement of the revised rates to rescind their notice and
    submit ACR information. Further, any M+C organization that
    would receive higher capitation payments as a result of this
    Act must submit revised ACR information within 2 weeks after
    announcement of the revised rates. Plans may only reduce
    premiums, reduce cost sharing, enhance benefits, or utilize
    stabilization funds. Any regulations that limit stabilization
    fund amounts would be waived, with respect to ACR submissions
    under this section of the bill. Notwithstanding the issuance of
    revised rates, M+C organizations would continue to be paid on a
    fee-for-service basis for costs associated with new national
    coverage determinations that are made mid-year.
    Section 605. Revision of payment rates for ESRD patients enrolled in
            Medicare+Choice plans
          This provision would require that the Secretary increase
    the M+C payment rates for enrollees with ESRD. The revised
    rates would reflect the demonstration rate (including the risk-
    adjustment methodology) of social health maintenance
    organizations' ESRD capitation demonstrations. The revised
    rates would include adjustments for factors such as renal
    treatment modality, age, and underlying cause of the disease.
    These revised rates would be effective beginning in January
    2002, and the Secretary of HHS would be required to publish the
    adjustments in final form by July 1, 2001.
    Section 606. Permitting premium reductions as additional benefits under
            Medicare+Choice plans
          This provision would permit M+C plans to offer reduced
    Medicare Part B premiums to their enrollees as part of
    providing any required additional benefits or reduced cost-
    sharing. An M+C organization could elect a reduction in its M+C
    payment up to 125% of the annual Part B premium. However, only
    80% of this amount could be used to reduce an enrollee's actual
    Part B premium. This would have the effect of returning up to
    100% of the beneficiary's Part B premium. The reduction would
    apply uniformly to each enrollee of the M+C plan. Plans would
    include information about Part B premium reductions as part of
    the required information that is provided to enrollees for
    comparing plan options. This provision would be effective
    beginning in 2003.
    Section 607. Full implementation of risk adjustment for congestive
            heart failure enrollees for 2001
          This provision would fully implement risk adjustment
    based on inpatient hospital diagnoses for an individual who had
    a qualifying congestive heart failure inpatient diagnosis
    between July 1, 1999 and June 30, 2000, if that individual was
    enrolled in a coordinated care plan offered on January 1, 2001.
    This would apply for only 1 year, beginning on January 1, 2001.
    This payment amount would be excluded from the determination of
    the budget neutrality factor.
    Section 608. Expansion of application of Medicare+Choice new entry
            bonus
          This provision would expand the application of the new
    entry bonus for M+C plans to include areas for which
    notification had been provided, as of October 3, 2000, that no
    plans would be available January 1, 2001.
    Section 609. Report on inclusion of certain costs of the Department of
            Veterans Affairs and Military Facility Services in calculating
            Medicare+Choice payment rates
          The Secretary shall report to Congress by January 1,
    2003, on a method to phase-in the costs of military facility
    services furnished by the Department of Veterans Affairs or the
    Department of Defense to Medicare-eligible beneficiaries in the
    calculation of an area's M+C capitation payment. This report
    would include, on a county-by-county basis: the actual or
    estimated costs of such services to Medicare-eligible
    beneficiaries; the change in M+C capitation payment rates if
    such costs were included in the calculation of payment rates;
    one or more proposals for the implementation of payment
    adjustments to M+C plans in counties where the payment rate has
    been affected due to failure to account for the cost of such
    services; and a system to ensure that when a M+C enrollee
    receives covered services through a facility of these
    Departments, there is an appropriate payment recovery to the
    Medicare program.

                   Subtitle B--Other Medicare+Choice Reforms

    Section 611. Payments of additional amounts for new benefits covered
            during a contract term
          The provision would require payment adjustments to M+C
    plans if a legislative change resulted in significant increased
    costs, similar to the current law requirements for adjusting
    payments due to significant increased costs resulting from
    National Coverage Determination (NCDs). In addition, this
    provision would require that cost projections and payment
    adjustments be based on actuarial estimates provided by the
    Chief Actuary of the Health Care Financing Administration.
    Section 612. Restriction on implementation of significant new
            regulatory requirements mid-year
          The provision would preclude the Secretary from
    implementing, other than at the beginning of a calendar year,
    regulations that impose new, significant regulatory
    requirements on M+C organizations.
    Section 613. Timely approval of marketing material that follows model
            marketing language
          The provision would require the Secretary to make
    decisions, within 10 days, approving or modifying marketing
    material used by M+C organizations, provided that the
    organization uses model language specified by the Secretary.
    This provision would apply to marketing material submitted on
    or after January 1, 2001.
    Section 614. Avoiding duplicative regulation
          This provision would further stipulate when Medicare law
    preempts State law or regulation from applying to M+C plans, by
    specifying that the term benefit requirements includes cost-
    sharing requirements. Second, the provision would stipulate
    that State laws and regulations affecting marketing materials,
    and summaries and schedules of benefits regarding an M+C plan,
    would also be preempted by Medicare law.
    Section 615. Election of uniform local coverage policy for
            Medicare+Choice plan covering multiple localities
          An M+C organization offering a plan in an area with more
    than one local coverage policy would be able to elect to have
    the local coverage policy for the part of the area that is most
    beneficial to M+C enrollees (as identified by the Secretary)
    apply to all M+C enrollees enrolled in the plan.
    Section 616. Eliminating health disparities in Medicare+Choice Program
          This provision would expand the M+C quality assurance
    programs for M+C plans to include a separate focus on racial
    and ethnic minorities. The Secretary would also be required to
    report to Congress how the quality assurance programs focus on
    racial and ethnic minorities, within 2 years after enactment
    and biennially thereafter.
    Section 617. Medicare+Choice Program compatibility with employer or
            union group health plans
          In order to make the M+C program compatible with employer
    or union group health plans, this provision would allow the
    Secretary to waive or modify requirements that hinder the
    design of, offering of, or enrollment in certain M+C plans.
    Plans included in the category are M+C plans under contract
    between M+C organizations and employers, labor organizations,
    or trustees of a fund established by employers and/or labor
    organizations.
    Section 618. Special Medigap enrollment anti-discrimination provision
            for certain beneficiaries
          This provision would extend the period for Medigap
    enrollment for certain M+C enrollees affected by termination of
    coverage. For individuals enrolled in an M+C plan during a 12-
    month trial period, their trial period would begin again if
    they re-enrolled in another M+C plan because of an involuntary
    termination. During this new trial period, they would retain
    their rights to enroll in a Medigap policy; however, the total
    time for a trial period could not exceed 2 years from the time
    they first enrolled in an M+C plan.
    Section 619. Restoring effective date of elections and changes of
            elections of Medicare+Choice plans
          This provision would allow individuals who enroll in an
    M+C plan after the 10th day of the month to receive coverage
    beginning on the first day of the next calendar month,
    effective June 1, 2001.
    Section 620. Permitting ESRD beneficiaries to enroll in another
            Medicare+Choice plan if the plan in which they are enrolled is
            terminated
          This provision would permit ESRD beneficiaries to enroll
    in another M+C plan if they lost coverage when their plan
    terminated its contract or reduced its service area. This
    provision would also be retroactive, to include individuals
    whose enrollment in an M+C plan was terminated involuntarily on
    or after December 31, 1998.
    Section 621. Providing Choice for skilled nursing facility services
            under the Medicare+Choice Program
          Effective for M+C contracts entered into or renewed on or
    after the date of enactment, the provision would require an M+C
    plan to cover post-hospitalization skilled nursing care through
    an enrollee's ``home skilled nursing facility'' if the plan has
    a contract with the facility or if the home facility agrees to
    accept substantially similar payment under the same terms and
    conditions that apply to similarly situated SNFs that are under
    contract with the plan. A ``home skilled nursing facility'' is
    defined as (a) one in which the enrollee resided at the time of
    the hospital admission that triggered eligibility for SNF care
    upon discharge, or (b) is the facility that is providing such
    services through the continuing care retirement community in
    which the enrollee resided at the time of hospital admission,
    or (c) is the facility in which the spouse of the enrollee is
    residing at the time of the enrollee's hospital discharge. The
    beneficiary would be required to receive coverage for SNF care
    at the home facility that is no less favorable than he or she
    would receive otherwise in another SNF that has a contract with
    the plan.
          Home skilled nursing facilities are permitted to refuse
    to accept Medicare+Choice enrollees or to impose conditions on
    their acceptance of such an enrollee.
          The provision would require the Medicare Payment Advisory
    Commission (MedPAC) to analyze and, within 2 years of
    enactment, report to Congress on the effects of this provision
    on the scope of benefits, administrative and other costs
    incurred by M+C organizations, and the contractual
    relationships between those plans and SNFs.
    Section 622. Providing for accountability of Medicare+Choice plans
          The provision would mandate review of ACR submissions by
    the HCFA Chief Actuary with respect to submissions for ACRs
    filed on or after May 1, 2001.
    Section 623. Increased civil money penalties for Medicare+Choice
            organizations that terminate contracts mid-year
          The provision would increase to $100,000 (or such higher
    level as the Secretary of Health and Human Services) the
    maximum civil money penalty that could be imposed for a
    Medicare+Choice organization that terminates its
    Medicare+Choice contract, other than at an appropriate time
    after providing appropriate notice.

                     SUBTITLE C--OTHER MANAGED CARE REFORMS

    Section 631. 1-Year extension of social health maintenance organization
            (SHMO) demonstration project
          The provision would extend SHMO waivers until 30 months
    after the Secretary submits a report with a plan for
    integration and transition of SHMOs into an option under the
    M+C program. This 30-month extension would supersede the 18-
    month extension in BBRA 99.
    Section 632. Revised terms and conditions for extension of Medicare
            community nursing organization (CNO) demonstration project
          Effective as if enacted with BBRA99, the provision would
    eliminate the requirement that CNO capitated payments be
    reduced to ensure budget neutrality. Through December 2001, the
    projects would operate under the same terms and conditions
    applicable during 1999, but with modification to the capitation
    rates. From October 1, 2000, through December 31, 2000, the
    capitation rates would be adjusted for inflation since 1999 and
    for changes in service packages, but reduced by 10 percent for
    in projects in Arizona, Minnesota, and Illinois and by 15
    percent in New York. In 2001, the rates would be determined by
    actuarially adjusting the rates in the prior period for
    inflation, utilization, and changes to the service package.
    Adjustments would be made to case management fees for certain
    frail enrollees, and requirements would be imposed to create
    greater uniformity in clinical features among participating
    sites and to improve quality and enrollee satisfaction.
          By July 1, 2001, the Secretary would be required to
    submit to the House Committees on Ways and Means and Commerce
    and the Senate Committee on Finance a report evaluating the
    projects for the period July 1997 through December 1999 and for
    the extension period after September 30, 2000. A final report
    would be required by July 1, 2002. The provision would require
    certain methods to be used to compare spending per beneficiary
    under the projects.
    Section 633. Extension of Medicare municipal health services
            demonstration projects
          The provision would extend the Medicare municipal health
    services demonstration projects for 2 additional years, through
    December 31, 2004.
    Section 634. Service area expansion for Medicare cost contracts during
            transition period
          This provision would allow service area expansion for
    Medicare cost contracts, if the request was submitted to the
    Secretary before September 1, 2003.

                              TITLE VII--MEDICAID

    Section 701. DSH payments
                (a) Modifications to DSH allotments
          For FY2001, the provision would set each state's DSH
    allotment equal to its allotment for FY2000 increased by the
    percentage change in the consumer price index for that year,
    subject to a ceiling that would be equal to 12% of that state's
    total medical assistance payments in that year.
          For FY2002, the provision would set each state's DSH
    allotment equal to its allotment for 2001 as determined above,
    increased by the percentage change in the consumer price index
    for FY2001, subject to a ceiling equal to 12% of that state's
    total medical assistance payments in that year.
          For extremely low DSH states, states whose FY1999 federal
    and state DSH expenditures (as reported to HCFA on August 31,
    2000) are greater than zero but less than one percent of the
    state's total medical assistance expenditures during that
    fiscal year, the DSH allotments for FY2001 would be equal to 1
    percent of the state's total amount of expenditures under their
    plan for such assistance during that fiscal year. For
    subsequent fiscal years, the allotments for extremely low DSH
    states would be equal to their allotment for the previous year,
    increased by the percentage change in the consumer price index
    for the previous year, subject to a ceiling of 12% of that
    state's total medical assistance payments in that year.
          Effective on the date that the final regulation for
    Medicaid upper payment limits is published in the Federal
    Register.
                (b) Assuring identification of Medicaid managed care
                        patients
          Effective for Medicaid managed care contracts in effect
    on January 1, 2000, the provision would clarify that Medicaid
    enrollees of managed care organizations and primary care case
    management organizations are to be included for the purposes of
    calculating the Medicaid impatient utilization rate and the
    low-income utilization rate. Also effective January 1, 2001,
    states must include in their MCO contracts information that
    allows the state to determine which hospital services are
    provided to Medicaid beneficiaries through managed care, and
    would also require states to include a sponsorship code for the
    managed care entity on the Medicaid beneficiary's
    identification card.
                (c) Application of Medicaid DSH transition rule to public
                        hospitals in all states
          The provision would revise BBA97, as modified by BBRA 99,
    so that the 175% hospital-specific DSH limit would apply to
    qualifying public hospitals in all states. (The limit currently
    applies only to certain public hospitals in California.) The
    limit, allowing DSH payments of up to 175% of each hospital's
    cost of unreimbursed care, would apply for two state fiscal
    years beginning on the first day of the state fiscal year that
    begins after September 30, 2002, and ends on the last day of
    the succeeding state fiscal year. Hospitals that would qualify
    for the higher hospital-specific limit would be those owned or
    operated by a state and meet the minimum federal requirements
    for disproportionate share hospitals. The permanent ceiling for
    California would not be affected.
          For states operating under waivers approved under section
    1115 of the Social Security Act, increase payments for public
    hospitals under this provision would be included in the
    baseline expenditure limit for the purposes of determining
    budget neutrality.
                (d) Assistance for certain public hospitals
          The provision would provide additional funds for certain
    public hospitals that are: owned or operated by a state (or by
    an instrumentality or unit of government within a state); are
    not receiving DSH payments as of October 1, 2000; and have a
    lot-income utilization rate in excess of 65% as of the same
    date. Funds provided under this section to states with eligible
    hospitals are in addition to DSH allotments. The total
    assistance under this section for all states cannot exceed the
    following amounts: $15 million for FY2002; $176 million for
    2003; $269 million for 2004; $330 million for 2005 and for FY
    2006 and each fiscal year thereunder, $375 million.
                (e) DSH payment accountability standards
          The provision would require the Secretary to implement
    accountability standards to ensure that DSH payments are used
    to reimburse States and hospitals that are eligible for such
    payments and are otherwise in accordance with Medicaid
    statutory requirements.

    Section 702. New prospective payment system for Federally-qualified
            health centers and rural health clinics

          The provision would create a new Medicaid prospective
    payment system for federally qualified health centers (FQHCs)
    and rural health centers (RHCs) beginning in January of FY2001.
    Existing FQHCs and RHCs would be paid per visit payments equal
    to 100% of the average costs incurred during 1999 and 2000
    adjusted to take into account any increase or decrease in the
    scope of services furnished. For entities first qualifying as
    FQHCs or RHCs after 2000, the year visit payments would begin
    in the first year that the center or clinic attains
    qualification and would be based on 100% of the costs incurred
    during that year based on the rates established for similar
    centers or clinics with similar caseloads in the same or
    adjacent geographic area. In the absence of such similar
    centers or clinics, the methodology would be based on that used
    for developing rates for established FQHCs or RHCs or such
    methodology or reasonable specifications as established by the
    Secretary. For each fiscal year thereafter, per visit payments
    for all FQHCs and RHCs would be equal to amounts for the
    preceding fiscal year increased by the percentage increase in
    the Medicare Economic Index applicable to primary care services
    for that fiscal year, and adjusted for any increase or decrease
    in the scope of Services furnished during the fiscal year. In
    managed care contracts, States must make supplemental payments
    to the center or clinic that would be equal to the difference
    between contracted amounts and the cost-based amounts. Those
    payments would be paid on a schedule mutually agreed to by the
    State and the FQHC or RHC. Alternative payment methods would be
    permitted only when payments are at least equal to amounts
    otherwise provided.
          The provision would also direct the Comptroller General
    to provide for a study on how to rebase or refine cost payment
    methods for the services of FQHCs and RHCs. The report would be
    due to Congress no later than 4 years after the date of
    enactment.

    Section 703. Streamlined approval of continued state-wide 1115 Medicaid
            waivers

          The provision would define the process for submitting
    requests for and receiving extensions of Medicaid demonstration
    waivers authorized under Section 1115 of the Social Security
    Act that have already received initial 3-year extensions. It
    would require each state requesting such an extension to submit
    an application at least 120 days prior to the expiration date
    of the existing extension to submit an application at least 120
    days prior to the expiration date of the existing waiver. No
    later than 45 days after the Secretary receives such
    application, the Secretary would be required to notify the
    State if she intends to review the existing terms and
    conditions of the project and would inform the State of
    proposed changes in the terms and conditions of the waiver. If
    the Secretary fails to provide such notification, the request
    would be deemed approved. During the 30-day period beginning
    after the Secretary provides the proposed terms and conditions
    to the state, those terms and conditions would be negotiated.
    No later than 120 days after the date that the request for
    extension was submitted (or such later date as agreed to by the
    chief executive officer of the State) the Secretary would be
    required to approve the application subject to the agreed upon
    terms and conditions or, in the absence of an agreement, such
    terms and conditions that are determined by the Secretary to be
    reasonably consistent with the overall objective of the waiver,
    or disapprove the application. If the waiver is not approved or
    disapproved during this period, the request would be deemed
    approved in the terms and conditions as have been agreed to (if
    any) by the Secretary and the State. Approvals would be for
    periods not to exceed 3 year and would be subject to the final
    reporting and evaluation requirements in current law.

    Section 704. Medicaid county-organized health systems

          The provision would allow the current exemption for
    certain Health Insuring Organizations (HIOs) from certain
    Medicaid HMO contracting requirements to apply as long as no
    more than 14% of all Medicaid beneficiaries in the state are
    enrolled in those HIOs. This provision would be effective as if
    included in the enactment of the Consolidated Omnibus Budget
    Reconciliation Act of 1985.

    Section 705. Deadline for issuance of final regulation relating to
            Medicaid upper payment limits

          The provision would require the Secretary to issue final
    regulations governing upper payment limits (UPLs) for inpatient
    and outpatient services provided by certain types of facilities
    no later than December 31, 2000. It would also require that the
    final regulation establish a separate UPL for non-state-owned
    or operated government facilities based on a proposed rule
    announced in October, 2000.
          The proposed rule would specify two transition periods
    for states with payment arrangements that are noncompliant, one
    for states with such arrangements effective on or after October
    1, 1999 and the other for those states with arrangements that
    were effective before that date. The starting point of the
    phase-out of existing payment arrangements, the percentage
    reduction in payments each year, and the overall length of time
    permitted for full phase-out would vary for the two transition
    periods.
          The provision also requires the final regulation to
    stipulate a third set of rules governing the transition period
    for certain states. This additional set of rules would apply to
    states with payment arrangements approved or in effect on or
    before October 1, 1992, or under which claims for federal
    matching were paid on or before that date, and for which such
    payments exceed the UPLs established under the final
    regulation. For these states, a 6-year transition period would
    apply, beginning with the period that begins on the first state
    fiscal year that starts after September 30, 2002 and ends on
    September 30, 2008. For each year during the transition period,
    applicable states must reduce excess payments by 15%. Full
    compliance with final regulations is required by October 1,
    2008.

    Section 706. Alaska FMAP

          The provision would change the formula for calculating
    the state percentage and thus the federal matching percentage
    for Alaska for fiscal years 2001 through 2005. The state
    percentage for Alaska would be calculated by using an adjusted
    per capita income calculation instead of the state-wide average
    per capita income calculation generally used. The adjusted per
    capita income for Alaska would be calculated as the three year
    average per capita income for the state divided by 1.05.

    Section 707. 1-Year extension of welfare-to-work transition

          This provision extends by 1 year the sunset on
    transitional medical assistance for families no longer eligible
    for welfare from September 30, 2001 to September 30, 2002.

    Section 708. Additional entities qualified to determine Medicaid
            presumptive eligibility for low-income children

          Under Medicaid presumptive eligibility rules, States are
    allowed to temporarily enroll children whose family income
    appears to be below Medicaid income standards, until a final
    formal determination of eligibility is made.
          The provision adds several entities to the list of those
    qualified to make Medicaid presumptive eligibility
    determinations for children. These new entities include
    agencies that determine eligibility for Medicaid or the State
    Children's Health Insurance program; or certain elementary and
    secondary schools, including those operated or supported by the
    Bureau of Indian Affairs.

    Section 709. Development of uniform QMB/SLMB application form

          This provision requires the secretary of Health and Human
    Services to develop a simplified national application form for
    States, at their option, to use for individuals who apply for
    medical assistance for medicare cost-sharing under the medicaid
    program.

    Section 710. Technical corrections

          This provision makes technical medicaid amendments that
    exempt from certain upper income limitations individuals made
    eligible for medical assistance, at a State's option, under the
    Foster Care Independence Act of 1999 and under the Breast and
    Cervical Cancer Prevention and Treatment Act of 2000.

             TITLE VIII--STATE CHILDREN'S HEALTH INSURANCE PROGRAM

    Section 801. Special rule for redistribution and availability of unused
            fiscal year 1998 and 1999 SCHIP allotments
          The provision would establish a new method for
    distributing unspent FY1998 and FY1999 allotments. States that
    use all their SCHIP allotments (for each of those years) would
    receive an amount equal to estimated spending in excess of
    their original exhausted allotment. Each territory that spends
    its original allotment would receive an amount that bears the
    same ratio to 1.05% of the total amount available for
    redistribution as the ratio of its original allotment to the
    total allotment for all territories.
          States that do not use all their SCHIP allotment would
    receive an amount equal to the total amount of unspent funds,
    less amounts distributed to states that fully exhausted their
    original allotments, multiplied by the ratio of a state's
    unspent original allotment to the total amount of unspent
    funds. States may use up to 10% of the retained FY1998 funds
    for outreach activities.
          To calculate the amounts available for redistribution in
    each formula described above, the Secretary would use amounts
    reported by states not later than December 15, 2000 for the
    FY1998 redistribution and November 30, 2001 for the FY1999
    redistribution as reported on HCFA Form 64 or HCFA Form 21, as
    approved by the Secretary. Redistributed funds would be
    available through the end of FY2002.
    Section 802. Authority to pay Medicaid expansion SCHIP costs from title
            XXI appropriation
          This provision provides a technical accounting
    clarification requested by the Health Care Financing
    Administration. It would authorize the payment of the costs of
    SCHIP Medicaid expansions and costs of benefits provided during
    periods of presumptive eligibility from the SCHIP appropriation
    rather than from the Medicaid appropriation, with a subsequent
    offset. In addition, the provision would codify proposed rules
    regarding the order of payments for benefits and administrative
    costs from state-specific SCHIP allotments.
    Section 803. Application of Medicaid child presumptive eligibility
            provisions
          Under Medicaid presumptive eligibility rules, states are
    allowed to temporarily enroll children whose family income
    appears to be below Medicaid income standards, until a final
    formal determination of eligibility is made. There is no
    express provision for presumptive eligibility under separate
    (non-Medicaid) SCHIP programs. However, the Secretary of HHS
    permits states to develop, for separate (non-Medicaid) SCHIP
    programs, procedures that are similar to those permitted under
    Medicaid.
          The provision clarifies states' authority to conduct
    presumptive eligibility determinations, as defined in Medicaid
    law, under separate (non-Medicaid) SCHIP programs.

                           TITLE IX--OTHER PROVISIONS

                            SUBTITLE A--PACE PROGRAM

    Section 901. Extension of transition for current waivers
          The provision would permit the Secretary to continue to
    operate the Program of All-Inclusive Care for the Elderly
    (PACE) under waivers for a period of 36 months (rather than 24
    months), and States may do so for 4 years (rather than 3
    years). OBRA 86 required the Secretary to grant waivers of
    certain Medicare and Medicaid requirements to not more than 10
    public or non-profit private community-based organizations to
    provide health and long-term care services on a capitated basis
    to frail elderly persons at risk of institutionalization. BBA
    97 established PACE as a permanent provider under Medicare and
    as a special benefit under Medicaid.
    Section 902. Continuing of certain operating arrangements permitted
          If prior to becoming a permanent component of Medicare, a
    PACE demonstration project had contractual or other operating
    arrangements that are not recognized under permanent program
    regulations, the provision would require the Secretary, in
    consultation with the state agency, to permit it to continue
    under such arrangements as long as it is consistent with the
    objectives of the PACE program.
    Section 903. Flexibility in exercising waiver authority
          The provision would enable the Secretary to exercise
    authority to modify or waive Medicare or Medicaid requirements
    to respond to the needs of PACE programs related to employment
    and the use of community care physicians. The Secretary must
    approve requests for such waivers within 90 days of the date
    the request for waiver is received.

       subtitle b--outreach to eligible low-income medicare beneficiaries

    Section 911. Outreach on availability of Medicare cost-sharing
            assistance to eligible low-income Medicare beneficiaries
          The provision would require the Commissioner of the
    Social Security Administration to conduct outreach efforts to
    identify individuals who may be eligible for Medicaid payment
    of Medicare cost sharing and to notify these persons of the
    availability of such assistance. The Commissioner would also be
    required to furnish, at least annually, a list of such
    individuals who reside in each state to that state's agency
    responsible for administering the Medicaid program as well as
    to any other appropriate state agency. The list should include
    the name and address, and whether such individuals have
    experienced reductions in Social Security benefits. The
    provision would also require the General Accounting Office to
    conduct a study of the impact of the outreach activities of the
    Commissioner to submit to Congress no later than 18 months
    after such outreach begins. The provision would be effective
    one year after date of enactment.

               subtitle C--maternal and child health block grant

    Section 921. Increase in authorization of appropriations for the
            maternal and child health services block grant
          The provision would increase the authorization of
    appropriations for the Maternal and Child Health Services Block
    Grant under Title V from $705,000,000 to $850,000,000 for
    fiscal year 2001 and each fiscal year thereafter.

                              subtitle d--diabetes

    Section 931. Increase in appropriations for special diabetes programs
            for type I diabetes and Indians
          The provision would extend for 1 year, to FY2003, the
    authority for grants to be made for both the Special Diabetes
    Program for Type I Diabetes and for the Special Diabetes
    Programs for Indians under the Public Health Service Act. The
    provision would also expand funding available for these
    programs. For each grant program, the provision would increase
    total funding to $100 million each for FY2001, FY2002 and
    FY2003. For FY2001 and FY2002, $30 million of the $100 million
    for each program would be transferred from SCHIP as set forth
    in the Balanced Budget Act of 1997; the remaining $70 million
    would be drawn from the Treasury out of funds not otherwise
    appropriated. In FY2003, the entire $100 million would be drawn
    from the Treasury out of funds not otherwise appropriated. In
    addition, the provision would extend the due date on final
    evaluation reports for these two grant programs from January 1,
    2002 to January 1, 2003.
    Section 932. Appropriations for Ricky Ray Hemophilia Relief Fund
          This provision provides for a direct appropriation of
    $475 million for FY2001. Funds would be available until
    expended.

              subtitle E--information on nursing facility staffing

    Section 941. Posting of information on nursing facility staffing
          The provision would require medicare skilled nursing
    facilities and medicaid nursing facilities to post nurse
    staffing information daily for each shift in the facility,
    effective January 1, 2003.

        subtitle F--adjustment of multiemployer plan benefits guaranteed

    Section 951. Adjustment of multiemployer plan benefits guaranteed
          The provision adjusts the level of multiemployer pension
    plan benefits guaranteed under title IV of ERISA.

                    COMMUNITY RENEWAL TAX RELIEF ACT OF 2000

          The conference agreement would enact the provisions of
    H.R. 5662, as introduced on December 14, 2000. The text of that
    bill follows:

       A BILL To amend the Internal Revenue Code of 1986 to provide for
       community revitalization and a 2-year extension of medical saving
                       accounts, and for other purposes.

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

    SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE.

        (a) Short Title.--This Act may be cited as the ``Community
    Renewal Tax Relief Act of 2000''.
        (b) Amendment of 1986 Code.--Except as otherwise expressly
    provided, whenever in this Act an amendment or repeal is
    expressed in terms of an amendment to, or repeal of, a section
    or other provision, the reference shall be considered to be
    made to a section or other provision of the Internal Revenue
    Code of 1986.
        (c) Table of Contents.--

                   TITLE I--COMMUNITY RENEWAL AND NEW MARKETS

               Subtitle A--Tax Incentives for Renewal Communities

    Sec. 101. Designation of and tax incentives for renewal communities.
    Sec. 102. Work opportunity credit for hiring youth residing in renewal
              communities.

       Subtitle B--Extension and Expansion of Empowerment Zone Incentives

    Sec. 111. Authority to designate 9 additional empowerment zones.
    Sec. 112. Extension of empowerment zone treatment through 2009.
    Sec. 113. 20 percent employment credit for all empowerment zones.
    Sec. 114. Increased expensing under section 179.
    Sec. 115. Higher limits on tax-exempt empowerment zone facility bonds.
    Sec. 116. Nonrecognition of gain on rollover of empowerment zone
              investments.
    Sec. 117. Increased exclusion of gain on sale of empowerment zone stock.

                       Subtitle C--New Markets Tax Credit

    Sec. 121. New markets tax credit.

              Subtitle D--Improvements in Low-Income Housing Credit

    Sec. 131. Modification of State ceiling on low-income housing credit.
    Sec. 132. Modification of criteria for allocating housing credits among
              projects.
    Sec. 133. Additional responsibilities of housing credit agencies.
    Sec. 134. Modifications to rules relating to basis of building which is
              eligible for credit.
    Sec. 135. Other modifications.
    Sec. 136. Carryforward rules.
    Sec. 137. Effective date.

         Subtitle E--Other Community Renewal and New Markets Assistance

     Part I--Provisions relating to housing and substance abuse prevention
                                  and treatment

    Sec. 141. Transfer of unoccupied and substandard HUD-held housing to
              local governments and community development corporations.
    Sec. 142. Transfer of HUD assets in revitalization areas.
    Sec. 143. Risk-sharing demonstration.
    Sec. 144. Prevention and treatment of substance abuse; services provided
              through religious organizations.

                 Part II--Advisory Council on Community Renewal

    Sec. 151. Short title.
    Sec. 152. Establishment.
    Sec. 153. Duties of Advisory Council.
    Sec. 154. Membership.
    Sec. 155. Powers of Advisory Council.
    Sec. 156. Reports.
    Sec. 157. Termination.
    Sec. 158. Applicability of Federal Advisory Committee Act.
    Sec. 159. Resources.
    Sec. 160. Effective date.

                          Subtitle F--Other Provisions

    Sec. 161. Acceleration of phase-in of increase in volume cap on private
              activity bonds.
    Sec. 162. Modifications to expensing of environmental remediation costs.
    Sec. 163. Extension of DC homebuyer tax credit.
    Sec. 164. Extension of DC Zone through 2003.
    Sec. 165. Extension of enhanced deduction for corporate donations of
              computer technology.
    Sec. 166. Treatment of Indian tribal governments under Federal
              Unemployment Tax Act.

     TITLE II--2-YEAR EXTENSION OF AVAILABILITY OF MEDICAL SAVINGS ACCOUNTS

    Sec. 201. 2-year extension of availability of medical savings accounts.
    Sec. 202. Medical savings accounts renamed as Archer MSAs.

               TITLE III--ADMINISTRATIVE AND TECHNICAL PROVISIONS

                      Subtitle A--Administrative Provisions

    Sec. 301. Exemption of certain reporting requirements.
    Sec. 302. Extension of deadlines for IRS compliance with certain notice
              requirements.
    Sec. 303. Extension of authority for undercover operations.
    Sec. 304. Confidentiality of certain documents relating to closing and
              similar agreements and to agreements with foreign governments.
    Sec. 305. Increase in threshold for Joint Committee reports on refunds
              and credits.
    Sec. 306. Treatment of missing children with respect to certain tax
              benefits.
    Sec. 307. Amendments to statutes referencing yield on 52-week Treasury
              bills.
    Sec. 308. Adjustments for Consumer Price Index error.
    Sec. 309. Prevention of duplication of loss through assumption of
              liabilities giving rise to a deduction.
    Sec. 310. Disclosure of certain information to Congressional Budget
              Office.

                        Subtitle B--Technical Corrections

    Sec. 311. Amendments related to Ticket to Work and Work Incentives
              Improvement Act of 1999.
    Sec. 312. Amendments related to Tax and Trade Relief Extension Act of
              1998.
    Sec. 313. Amendments related to Internal Revenue Service Restructuring
              and Reform Act of 1998.
    Sec. 314. Amendments related to Taxpayer Relief Act of 1997.
    Sec. 315. Amendments related to Balanced Budget Act of 1997.
    Sec. 316. Amendments related to Small Business Job Protection Act of
              1996.
    Sec. 317. Amendment related to Revenue Reconciliation Act of 1990.
    Sec. 318. Other technical corrections.
    Sec. 319. Clerical changes.

             TITLE IV--TAX TREATMENT OF SECURITIES FUTURES CONTRACTS

    Sec. 401. Tax treatment of securities futures contracts.

                   TITLE I--COMMUNITY RENEWAL AND NEW MARKETS

               Subtitle A--Tax Incentives for Renewal Communities

    SEC. 101. DESIGNATION OF AND TAX INCENTIVES FOR RENEWAL COMMUNITIES.

        (a) In General.--Chapter 1 is amended by adding at the end
    the following new subchapter:

                      ``Subchapter X--Renewal Communities

            ``Part   I. Designation.
            ``Part  II. Renewal community capital gain; renewal community
                      business.
            ``Part  III. Additional incentives.

                             ``PART I--DESIGNATION

            ``Sec. 1400E. Designation of renewal communities.

    ``SEC. 1400E. DESIGNATION OF RENEWAL COMMUNITIES.

        ``(a) Designation.--
                ``(1) Definitions.--For purposes of this title, the
            term `renewal community' means any area--
                        ``(A) which is nominated by 1 or more local
                    governments and the State or States in which it
                    is located for designation as a renewal
                    community (hereafter in this section referred
                    to as a `nominated area'), and
                        ``(B) which the Secretary of Housing and
                    Urban Development designates as a renewal
                    community, after consultation with--
                                ``(i) the Secretaries of
                            Agriculture, Commerce, Labor, and the
                            Treasury; the Director of the Office of
                            Management and Budget, and the
                            Administrator of the Small Business
                            Administration, and
                                ``(ii) in the case of an area on an
                            Indian reservation, the Secretary of
                            the Interior.
                ``(2) Number of designations.--
                        ``(A) In general.--Not more than 40
                    nominated areas may be designated as renewal
                    communities.
                        ``(B) Minimum designation in rural areas.--
                    Of the areas designated under paragraph (1), at
                    least 12 must be areas--
                                ``(i) which are within a local
                            government jurisdiction or
                            jurisdictions with a population of less
                            than 50,000,
                                ``(ii) which are outside of a
                            metropolitan statistical area (within
                            the meaning of section 143(k)(2)(B)),
                            or
                                ``(iii) which are determined by the
                            Secretary of Housing and Urban
                            Development, after consultation with
                            the Secretary of Commerce, to be rural
                            areas.
                ``(3) Areas designated based on degree of poverty,
            etc.--
                        ``(A) In general.--Except as otherwise
                    provided in this section, the nominated areas
                    designated as renewal communities under this
                    subsection shall be those nominated areas with
                    the highest average ranking with respect to the
                    criteria described in subparagraphs (B), (C),
                    and (D) of subsection (c)(3). For purposes of
                    the preceding sentence, an area shall be ranked
                    within each such criterion on the basis of the
                    amount by which the area exceeds such
                    criterion, with the area which exceeds such
                    criterion by the greatest amount given the
                    highest ranking.
                        ``(B) Exception where inadequate course of
                    action, etc.--An area shall not be designated
                    under subparagraph (A) if the Secretary of
                    Housing and Urban Development determines that
                    the course of action described in subsection
                    (d)(2) with respect to such area is inadequate.
                        ``(C) Preference for enterprise communities
                    and empowerment zones.--With respect to the
                    first 20 designations made under this section,
                    a preference shall be provided to those
                    nominated areas which are enterprise
                    communities or empowerment zones (and are
                    otherwise eligible for designation under this
                    section).
                ``(4) Limitation on designations.--
                        ``(A) Publication of regulations.--The
                    Secretary of Housing and Urban Development
                    shall prescribe by regulation no later than 4
                    months after the date of the enactment of this
                    section, after consultation with the officials
                    described in paragraph (1)(B)--
                                ``(i) the procedures for nominating
                            an area under paragraph (1)(A),
                                ``(ii) the parameters relating to
                            the size and population characteristics
                            of a renewal community, and
                                ``(iii) the manner in which
                            nominated areas will be evaluated based
                            on the criteria specified in subsection
                            (d).
                        ``(B) Time limitations.--The Secretary of
                    Housing and Urban Development may designate
                    nominated areas as renewal communities only
                    during the period beginning on the first day of
                    the first month following the month in which
                    the regulations described in subparagraph (A)
                    are prescribed and ending on December 31, 2001.
                        ``(C) Procedural rules.--The Secretary of
                    Housing and Urban Development shall not make
                    any designation of a nominated area as a
                    renewal community under paragraph (2) unless--
                                ``(i) the local governments and the
                            States in which the nominated area is
                            located have the authority--
                                        ``(I) to nominate such area
                                    for designation as a renewal
                                    community,
                                        ``(II) to make the State
                                    and local commitments described
                                    in subsection (d), and
                                        ``(III) to provide
                                    assurances satisfactory to the
                                    Secretary of Housing and Urban
                                    Development that such
                                    commitments will be fulfilled,
                                ``(ii) a nomination regarding such
                            area is submitted in such a manner and
                            in such form, and contains such
                            information, as the Secretary of
                            Housing and Urban Development shall by
                            regulation prescribe, and
                                ``(iii) the Secretary of Housing
                            and Urban Development determines that
                            any information furnished is reasonably
                            accurate.
                ``(5) Nomination process for indian reservations.--
            For purposes of this subchapter, in the case of a
            nominated area on an Indian reservation, the
            reservation governing body (as determined by the
            Secretary of the Interior) shall be treated as being
            both the State and local governments with respect to
            such area.
        ``(b) Period for Which Designation Is in Effect.--
                ``(1) In general.--Any designation of an area as a
            renewal community shall remain in effect during the
            period beginning on January 1, 2002, and ending on the
            earliest of--
                        ``(A) December 31, 2009,
                        ``(B) the termination date designated by
                    the State and local governments in their
                    nomination, or
                        ``(C) the date the Secretary of Housing and
                    Urban Development revokes such designation.
                ``(2) Revocation of designation.--The Secretary of
            Housing and Urban Development may revoke the
            designation under this section of an area if such
            Secretary determines that the local government or the
            State in which the area is located--
                        ``(A) has modified the boundaries of the
                    area, or
                        ``(B) is not complying substantially with,
                    or fails to make progress in achieving, the
                    State or local commitments, respectively,
                    described in subsection (d).
                ``(3) Earlier termination of certain benefits if
            earlier termination of designation.--If the designation
            of an area as a renewal community terminates before
            December 31, 2009, the day after the date of such
            termination shall be substituted for `January 1, 2010'
            each place it appears in sections 1400F and 1400J with
            respect to such area.
        ``(c) Area and Eligibility Requirements.--
                ``(1) In general.--The Secretary of Housing and
            Urban Development may designate a nominated area as a
            renewal community under subsection (a) only if the area
            meets the requirements of paragraphs (2) and (3) of
            this subsection.
                ``(2) Area requirements.--A nominated area meets
            the requirements of this paragraph if--
                        ``(A) the area is within the jurisdiction
                    of one or more local governments,
                        ``(B) the boundary of the area is
                    continuous, and
                        ``(C) the area--
                                ``(i) has a population of not more
                            than 200,000 and at least--
                                        ``(I) 4,000 if any portion
                                    of such area (other than a
                                    rural area described in
                                    subsection (a)(2)(B)(i)) is
                                    located within a metropolitan
                                    statistical area (within the
                                    meaning of section
                                    143(k)(2)(B)) which has a
                                    population of 50,000 or
                                    greater, or
                                        ``(II) 1,000 in any other
                                    case, or
                                ``(ii) is entirely within an Indian
                            reservation (as determined by the
                            Secretary of the Interior).
                ``(3) Eligibility requirements.--A nominated area
            meets the requirements of this paragraph if the State
            and the local governments in which it is located
            certify in writing (and the Secretary of Housing and
            Urban Development, after such review of supporting data
            as he deems appropriate, accepts such certification)
            that--
                        ``(A) the area is one of pervasive poverty,
                    unemployment, and general distress,
                        ``(B) the unemployment rate in the area, as
                    determined by the most recent available data,
                    was at least 1\1/2\ times the national
                    unemployment rate for the period to which such
                    data relate,
                        ``(C) the poverty rate for each population
                    census tract within the nominated area is at
                    least 20 percent, and
                        ``(D) in the case of an urban area, at
                    least 70 percent of the households living in
                    the area have incomes below 80 percent of the
                    median income of households within the
                    jurisdiction of the local government
                    (determined in the same manner as under section
                    119(b)(2) of the Housing and Community
                    Development Act of 1974).
                ``(4) Consideration of other factors.--The
            Secretary of Housing and Urban Development, in
            selecting any nominated area for designation as a
            renewal community under this section--
                        ``(A) shall take into account--
                                ``(i) the extent to which such area
                            has a high incidence of crime, or
                                ``(ii) if such area has census
                            tracts identified in the May 12, 1998,
                            report of the General Accounting Office
                            regarding the identification of
                            economically distressed areas, and
                        ``(B) with respect to 1 of the areas to be
                    designated under subsection (a)(2)(B), may, in
                    lieu of any criteria described in paragraph
                    (3), take into account the existence of
                    outmigration from the area.
        ``(d) Required State and Local Commitments.--
                ``(1) In general.--The Secretary of Housing and
            Urban Development may designate any nominated area as a
            renewal community under subsection (a) only if--
                        ``(A) the local government and the State in
                    which the area is located agree in writing
                    that, during any period during which the area
                    is a renewal community, such governments will
                    follow a specified course of action which meets
                    the requirements of paragraph (2) and is
                    designed to reduce the various burdens borne by
                    employers or employees in such area, and
                        ``(B) the economic growth promotion
                    requirements of paragraph (3) are met.
                ``(2) Course of action.--
                        ``(A) In general.--A course of action meets
                    the requirements of this paragraph if such
                    course of action is a written document, signed
                    by a State (or local government) and
                    neighborhood organizations, which evidences a
                    partnership between such State or government
                    and community-based organizations and which
                    commits each signatory to specific and
                    measurable goals, actions, and timetables. Such
                    course of action shall include at least 4 of
                    the following:
                                ``(i) A reduction of tax rates or
                            fees applying within the renewal
                            community.
                                ``(ii) An increase in the level of
                            efficiency of local services within the
                            renewal community.
                                ``(iii) Crime reduction strategies,
                            such as crime prevention (including the
                            provision of crime prevention services
                            by nongovernmental entities).
                                ``(iv) Actions to reduce, remove,
                            simplify, or streamline governmental
                            requirements applying within the
                            renewal community.
                                ``(v) Involvement in the program by
                            private entities, organizations,
                            neighborhood organizations, and
                            community groups, particularly those in
                            the renewal community, including a
                            commitment from such private entities
                            to provide jobs and job training for,
                            and technical, financial, or other
                            assistance to, employers, employees,
                            and residents from the renewal
                            community.
                                ``(vi) The gift (or sale at below
                            fair market value) of surplus real
                            property (such as land, homes, and
                            commercial or industrial structures) in
                            the renewal community to neighborhood
                            organizations, community development
                            corporations, or private companies.
                        ``(B) Recognition of past efforts.--For
                    purposes of this section, in evaluating the
                    course of action agreed to by any State or
                    local government, the Secretary of Housing and
                    Urban Development shall take into account the
                    past efforts of such State or local government
                    in reducing the various burdens borne by
                    employers and employees in the area involved.
                ``(3) Economic growth promotion requirements.--The
            economic growth promotion requirements of this
            paragraph are met with respect to a nominated area if
            the local government and the State in which such area
            is located certify in writing that such government and
            State (respectively) have repealed or reduced, will not
            enforce, or will reduce within the nominated area at
            least 4 of the following:
                        ``(A) Licensing requirements for
                    occupations that do not ordinarily require a
                    professional degree.
                        ``(B) Zoning restrictions on home-based
                    businesses which do not create a public
                    nuisance.
                        ``(C) Permit requirements for street
                    vendors who do not create a public nuisance.
                        ``(D) Zoning or other restrictions that
                    impede the formation of schools or child care
                    centers.
                        ``(E) Franchises or other restrictions on
                    competition for businesses providing public
                    services, including taxicabs, jitneys, cable
                    television, or trash hauling.
            This paragraph shall not apply to the extent that such
            regulation of businesses and occupations is necessary
            for and well-tailored to the protection of health and
            safety.
        ``(e) Coordination With Treatment of Empowerment Zones and
    Enterprise Communities.--For purposes of this title, the
    designation under section 1391 of any area as an empowerment
    zone or enterprise community shall cease to be in effect as of
    the date that the designation of any portion of such area as a
    renewal community takes effect.
        ``(f) Definitions and Special Rules.--For purposes of this
    subchapter--
                ``(1) Governments.--If more than one government
            seeks to nominate an area as a renewal community, any
            reference to, or requirement of, this section shall
            apply to all such governments.
                ``(2) Local government.--The term `local
            government' means--
                        ``(A) any county, city, town, township,
                    parish, village, or other general purpose
                    political subdivision of a State, and
                        ``(B) any combination of political
                    subdivisions described in subparagraph (A)
                    recognized by the Secretary of Housing and
                    Urban Development.
                ``(3) Application of rules relating to census
            tracts.--The rules of section 1392(b)(4) shall apply.
                ``(4) Census data.--Population and poverty rate
            shall be determined by using 1990 census data.

     ``PART II--RENEWAL COMMUNITY CAPITAL GAIN; RENEWAL COMMUNITY BUSINESS

            ``Sec. 1400F. Renewal community capital gain.
            ``Sec. 1400G. Renewal community business defined.

    ``SEC. 1400F. RENEWAL COMMUNITY CAPITAL GAIN.

        ``(a) General Rule.--Gross income does not include any
    qualified capital gain from the sale or exchange of a qualified
    community asset held for more than 5 years.
        ``(b) Qualified Community Asset.--For purposes of this
    section--
                ``(1) In general.--The term `qualified community
            asset' means--
                        ``(A) any qualified community stock,
                        ``(B) any qualified community partnership
                    interest, and
                        ``(C) any qualified community business
                    property.
                ``(2) Qualified community stock.--
                        ``(A) In general.--Except as provided in
                    subparagraph (B), the term `qualified community
                    stock' means any stock in a domestic
                    corporation if--
                                ``(i) such stock is acquired by the
                            taxpayer after December 31, 2001, and
                            before January 1, 2010, at its original
                            issue (directly or through an
                            underwriter) from the corporation
                            solely in exchange for cash,
                                ``(ii) as of the time such stock
                            was issued, such corporation was a
                            renewal community business (or, in the
                            case of a new corporation, such
                            corporation was being organized for
                            purposes of being a renewal community
                            business), and
                                ``(iii) during substantially all of
                            the taxpayer's holding period for such
                            stock, such corporation qualified as a
                            renewal community business.
                        ``(B) Redemptions.--A rule similar to the
                    rule of section 1202(c)(3) shall apply for
                    purposes of this paragraph.
                ``(3) Qualified community partnership interest.--
            The term `qualified community partnership interest'
            means any capital or profits interest in a domestic
            partnership if--
                        ``(A) such interest is acquired by the
                    taxpayer after December 31, 2001, and before
                    January 1, 2010, from the partnership solely in
                    exchange for cash,
                        ``(B) as of the time such interest was
                    acquired, such partnership was a renewal
                    community business (or, in the case of a new
                    partnership, such partnership was being
                    organized for purposes of being a renewal
                    community business), and
                        ``(C) during substantially all of the
                    taxpayer's holding period for such interest,
                    such partnership qualified as a renewal
                    community business.
            A rule similar to the rule of paragraph (2)(B) shall
            apply for purposes of this paragraph.
                ``(4) Qualified community business property.--
                        ``(A) In general.--The term `qualified
                    community business property' means tangible
                    property if--
                                ``(i) such property was acquired by
                            the taxpayer by purchase (as defined in
                            section 179(d)(2)) after December 31,
                            2001, and before January 1, 2010,
                                ``(ii) the original use of such
                            property in the renewal community
                            commences with the taxpayer, and
                                ``(iii) during substantially all of
                            the taxpayer's holding period for such
                            property, substantially all of the use
                            of such property was in a renewal
                            community business of the taxpayer.
                        ``(B) Special rule for substantial
                    improvements.--The requirements of clauses (i)
                    and (ii) of subparagraph (A) shall be treated
                    as satisfied with respect to--
                                ``(i) property which is
                            substantially improved by the taxpayer
                            before January 1, 2010, and
                                ``(ii) any land on which such
                            property is located.
                    The determination of whether a property is
                    substantially improved shall be made under
                    clause (ii) of section 1400B(b)(4)(B), except
                    that `December 31, 2001' shall be substituted
                    for `December 31, 1997' in such clause.
        ``(c) Qualified Capital Gain.--For purposes of this
    section--
                ``(1) In general.--Except as otherwise provided in
            this subsection, the term `qualified capital gain'
            means any gain recognized on the sale or exchange of--
                        ``(A) a capital asset, or
                        ``(B) property used in the trade or
                    business (as defined in section 1231(b)).
                ``(2) Gain before 2002 or after 2014 not
            qualified.--The term `qualified capital gain' shall not
            include any gain attributable to periods before January
            1, 2002, or after December 31, 2014.
                ``(3) Certain rules to apply.--Rules similar to the
            rules of paragraphs (3), (4), and (5) of section
            1400B(e) shall apply for purposes of this subsection.
        ``(d) Certain Rules To Apply.--For purposes of this
    section, rules similar to the rules of paragraphs (5), (6), and
    (7) of subsection (b), and subsections (f) and (g), of section
    1400B shall apply; except that for such purposes section
    1400B(g)(2) shall be applied by substituting `January 1, 2002'
    for `January 1, 1998' and `December 31, 2014' for `December 31,
    2008'.
        ``(e) Regulations.--The Secretary shall prescribe such
    regulations as may be appropriate to carry out the purposes of
    this section, including regulations to prevent the abuse of the
    purposes of this section.

    ``SEC. 1400G. RENEWAL COMMUNITY BUSINESS DEFINED.

        ``For purposes of this subchapter, the term `renewal
    community business' means any entity or proprietorship which
    would be a qualified business entity or qualified
    proprietorship under section 1397C if references to renewal
    communities were substituted for references to empowerment
    zones in such section.

                       ``PART III--ADDITIONAL INCENTIVES

            ``Sec. 1400H. Renewal community employment credit.
            ``Sec. 1400I. Commercial revitalization deduction.
            ``Sec. 1400J. Increase in expensing under section 179.

    ``SEC. 1400H. RENEWAL COMMUNITY EMPLOYMENT CREDIT.

        ``(a) In General.--Subject to the modification in
    subsection (b), a renewal community shall be treated as an
    empowerment zone for purposes of section 1396 with respect to
    wages paid or incurred after December 31, 2001.
        ``(b) Modification.--In applying section 1396 with respect
    to renewal communities--
                ``(1) the applicable percentage shall be 15
            percent, and
                ``(2) subsection (c) thereof shall be applied by
            substituting `$10,000' for `$15,000' each place it
            appears.

    ``SEC. 1400I. COMMERCIAL REVITALIZATION DEDUCTION.

        ``(a) General Rule.--At the election of the taxpayer,
    either--
                ``(1) one-half of any qualified revitalization
            expenditures chargeable to capital account with respect
            to any qualified revitalization building shall be
            allowable as a deduction for the taxable year in which
            the building is placed in service, or
                ``(2) a deduction for all such expenditures shall
            be allowable ratably over the 120-month period
            beginning with the month in which the building is
            placed in service.
        ``(b) Qualified Revitalization Buildings and
    Expenditures.--For purposes of this section--
                ``(1) Qualified revitalization building.--The term
            `qualified revitalization building' means any building
            (and its structural components) if--
                        ``(A) the building is placed in service by
                    the taxpayer in a renewal community and the
                    original use of the building begins with the
                    taxpayer, or
                        ``(B) in the case of such building not
                    described in subparagraph (A), such building--
                                ``(i) is substantially
                            rehabilitated (within the meaning of
                            section 47(c)(1)(C)) by the taxpayer,
                            and
                                ``(ii) is placed in service by the
                            taxpayer after the rehabilitation in a
                            renewal community.
                ``(2) Qualified revitalization expenditure.--
                        ``(A) In general.--The term `qualified
                    revitalization expenditure' means any amount
                    properly chargeable to capital account for
                    property for which depreciation is allowable
                    under section 168 (without regard to this
                    section) and which is--
                                ``(i) nonresidential real property
                            (as defined in section 168(e)), or
                                ``(ii) section 1250 property (as
                            defined in section 1250(c)) which is
                            functionally related and subordinate to
                            property described in clause (i).
                        ``(B) Certain expenditures not included.--
                                ``(i) Acquisition cost.--In the
                            case of a building described in
                            paragraph (1)(B), the cost of acquiring
                            the building or interest therein shall
                            be treated as a qualified
                            revitalization expenditure only to the
                            extent that such cost does not exceed
                            30 percent of the aggregate qualified
                            revitalization expenditures (determined
                            without regard to such cost) with
                            respect to such building.
                                ``(ii) Credits.--The term
                            `qualified revitalization expenditure'
                            does not include any expenditure which
                            the taxpayer may take into account in
                            computing any credit allowable under
                            this title unless the taxpayer elects
                            to take the expenditure into account
                            only for purposes of this section.
        ``(c) Dollar Limitation.--The aggregate amount which may be
    treated as qualified revitalization expenditures with respect
    to any qualified revitalization building shall not exceed the
    lesser of--
                ``(1) $10,000,000, or
                ``(2) the commercial revitalization expenditure
            amount allocated to such building under this section by
            the commercial revitalization agency for the State in
            which the building is located.
        ``(d) Commercial Revitalization Expenditure Amount.--
                ``(1) In general.--The aggregate commercial
            revitalization expenditure amount which a commercial
            revitalization agency may allocate for any calendar
            year is the amount of the State commercial
            revitalization expenditure ceiling determined under
            this paragraph for such calendar year for such agency.
                ``(2) State commercial revitalization expenditure
            ceiling.--The State commercial revitalization
            expenditure ceiling applicable to any State--
                        ``(A) for each calendar year after 2001 and
                    before 2010 is $12,000,000 for each renewal
                    community in the State, and
                        ``(B) for each calendar year thereafter is
                    zero.
                ``(3) Commercial revitalization agency.--For
            purposes of this section, the term `commercial
            revitalization agency' means any agency authorized by a
            State to carry out this section.
                ``(4) Time and manner of allocations.--Allocations
            under this section shall be made at the same time and
            in the same manner as under paragraphs (1) and (7) of
            section 42(h).
        ``(e) Responsibilities of Commercial Revitalization
    Agencies.--
                ``(1) Plans for allocation.--Notwithstanding any
            other provision of this section, the commercial
            revitalization expenditure amount with respect to any
            building shall be zero unless--
                        ``(A) such amount was allocated pursuant to
                    a qualified allocation plan of the commercial
                    revitalization agency which is approved (in
                    accordance with rules similar to the rules of
                    section 147(f )(2) (other than subparagraph
                    (B)(ii) thereof)) by the governmental unit of
                    which such agency is a part, and
                        ``(B) such agency notifies the chief
                    executive officer (or its equivalent) of the
                    local jurisdiction within which the building is
                    located of such allocation and provides such
                    individual a reasonable opportunity to comment
                    on the allocation.
                ``(2) Qualified allocation plan.--For purposes of
            this subsection, the term `qualified allocation plan'
            means any plan--
                        ``(A) which sets forth selection criteria
                    to be used to determine priorities of the
                    commercial revitalization agency which are
                    appropriate to local conditions,
                        ``(B) which considers--
                                ``(i) the degree to which a project
                            contributes to the implementation of a
                            strategic plan that is devised for a
                            renewal community through a citizen
                            participation process,
                                ``(ii) the amount of any increase
                            in permanent, full-time employment by
                            reason of any project, and
                                ``(iii) the active involvement of
                            residents and nonprofit groups within
                            the renewal community, and
                        ``(C) which provides a procedure that the
                    agency (or its agent) will follow in monitoring
                    compliance with this section.
        ``(f) Special Rules.--
                ``(1) Deduction in lieu of depreciation.--The
            deduction provided by this section for qualified
            revitalization expenditures shall--
                        ``(A) with respect to the deduction
                    determined under subsection (a)(1), be in lieu
                    of any depreciation deduction otherwise
                    allowable on account of one-half of such
                    expenditures, and
                        ``(B) with respect to the deduction
                    determined under subsection (a)(2), be in lieu
                    of any depreciation deduction otherwise
                    allowable on account of all of such
                    expenditures.
                ``(2) Basis adjustment, etc.--For purposes of
            sections 1016 and 1250, the deduction under this
            section shall be treated in the same manner as a
            depreciation deduction. For purposes of section
            1250(b)(5), the straight line method of adjustment
            shall be determined without regard to this section.
                ``(3) Substantial rehabilitations treated as
            separate buildings.--A substantial rehabilitation
            (within the meaning of section 47(c)(1)(C)) of a
            building shall be treated as a separate building for
            purposes of subsection (a).
                ``(4) Clarification of allowance of deduction under
            minimum tax.--Notwithstanding section 56(a)(1), the
            deduction under this section shall be allowed in
            determining alternative minimum taxable income under
            section 55.
        ``(g) Termination.--This section shall not apply to any
    building placed in service after December 31, 2009.

    ``SEC. 1400J. INCREASE IN EXPENSING UNDER SECTION 179.

        ``(a) In General.--For purposes of section 1397A--
                ``(1) a renewal community shall be treated as an
            empowerment zone,
                ``(2) a renewal community business shall be treated
            as an enterprise zone business, and
                ``(3) qualified renewal property shall be treated
            as qualified zone property.
        ``(b) Qualified Renewal Property.--For purposes of this
    section--
                ``(1) In general.--The term `qualified renewal
            property' means any property to which section 168
            applies (or would apply but for section 179) if--
                        ``(A) such property was acquired by the
                    taxpayer by purchase (as defined in section
                    179(d)(2)) after December 31, 2001, and before
                    January 1, 2010, and
                        ``(B) such property would be qualified zone
                    property (as defined in section 1397D) if
                    references to renewal communities were
                    substituted for references to empowerment zones
                    in section 1397D.
                ``(2) Certain rules to apply.--The rules of
            subsections (a)(2) and (b) of section 1397D shall apply
            for purposes of this section.''.
        (b) Exception for Commercial Revitalization Deduction From
    Passive Loss Rules.--
                (1) Paragraph (3) of section 469(i) is amended by
            redesignating subparagraphs (C), (D), and (E) as
            subparagraphs (D), (E), and (F), respectively, and by
            inserting after subparagraph (B) the following new
            subparagraph:
                        ``(C) Exception for commercial
                    revitalization deduction.--Subparagraph (A)
                    shall not apply to any portion of the passive
                    activity loss for any taxable year which is
                    attributable to the commercial revitalization
                    deduction under section 1400I.''.
                (2) Subparagraph (E) of section 469(i)(3), as
            redesignated by subparagraph (A), is amended to read as
            follows:
                        ``(E) Ordering rules to reflect exceptions
                    and separate phase-outs.--If subparagraph (B),
                    (C), or (D) applies for a taxable year,
                    paragraph (1) shall be applied--
                                ``(i) first to the portion of the
                            passive activity loss to which
                            subparagraph (C) does not apply,
                                ``(ii) second to the portion of the
                            passive activity credit to which
                            subparagraph (B) or (D) does not apply,
                                ``(iii) third to the portion of
                            such credit to which subparagraph (B)
                            applies,
                                ``(iv) fourth to the portion of
                            such loss to which subparagraph (C)
                            applies, and
                                ``(v) then to the portion of such
                            credit to which subparagraph (D)
                            applies.''.
                (3)(A) Subparagraph (B) of section 469(i)(6) is
            amended by striking ``or'' at the end of clause (i), by
            striking the period at the end of clause (ii) and
            inserting ``, or'', and by adding at the end the
            following new clause:
                                ``(iii) any deduction under section
                            1400I (relating to commercial
                            revitalization deduction).''.
                (B) The heading for such subparagraph (B) is
            amended by striking ``or rehabilitation credit'' and
            inserting ``, rehabilitation credit, or commercial
            revitalization deduction''.
        (c) Audit and Report.--Not later than January 31 of 2004,
    2007, and 2010, the Comptroller General of the United States
    shall, pursuant to an audit of the renewal community program
    established under section 1400E of the Internal Revenue Code of
    1986 (as added by subsection (a)) and the empowerment zone and
    enterprise community program under subchapter U of chapter 1 of
    such Code, report to Congress on such program and its effect on
    poverty, unemployment, and economic growth within the
    designated renewal communities, empowerment zones, and
    enterprise communities.
        (d) Clerical Amendment.--The table of subchapters for
    chapter 1 is amended by adding at the end the following new
    item:

            ``Subchapter X. Renewal Communities.''.

    SEC. 102. WORK OPPORTUNITY CREDIT FOR HIRING YOUTH RESIDING IN RENEWAL
                        COMMUNITIES.

        (a) High-Risk Youth.--Subparagraphs (A)(ii) and (B) of
    section 51(d)(5) are each amended by striking ``empowerment
    zone or enterprise community'' and inserting ``empowerment
    zone, enterprise community, or renewal community''.
        (b) Qualified Summer Youth Employee.--Clause (iv) of
    section 51(d)(7)(A) is amended by striking ``empowerment zone
    or enterprise community'' and inserting ``empowerment zone,
    enterprise community, or renewal community''.
        (c) Headings.--Paragraphs (5)(B) and (7)(C) of section
    51(d) are each amended by inserting ``or community'' in the
    heading after ``zone''.
        (d) Effective Date.--The amendments made by this section
    shall apply to individuals who begin work for the employer
    after December 31, 2001.

       Subtitle B--Extension and Expansion of Empowerment Zone Incentives

    SEC. 111. AUTHORITY TO DESIGNATE 9 ADDITIONAL EMPOWERMENT ZONES.

        Section 1391 is amended by adding at the end the following
    new subsection:
        ``(h) Additional Designations Permitted.--
                ``(1) In general.--In addition to the areas
            designated under subsections (a) and (g), the
            appropriate Secretaries may designate in the aggregate
            an additional 9 nominated areas as empowerment zones
            under this section, subject to the availability of
            eligible nominated areas. Of that number, not more than
            seven may be designated in urban areas and not more
            than 2 may be designated in rural areas.
                ``(2) Period designations may be made and take
            effect.--A designation may be made under this
            subsection after the date of the enactment of this
            subsection and before January 1, 2002. Subject to
            subparagraphs (B) and (C) of subsection (d)(1), such
            designations shall remain in effect during the period
            beginning on January 1, 2002, and ending on December
            31, 2009.
                ``(3) Modifications to eligibility criteria, etc.--
            The rules of subsection (g)(3) shall apply to
            designations under this subsection.
                ``(4) Empowerment zones which become renewal
            communities.--The number of areas which may be
            designated as empowerment zones under this subsection
            shall be increased by 1 for each area which ceases to
            be an empowerment zone by reason of section 1400E(e).
            Each additional area designated by reason of the
            preceding sentence shall have the same urban or rural
            character as the area it is replacing.''

    SEC. 112. EXTENSION OF EMPOWERMENT ZONE TREATMENT THROUGH 2009.

        Subparagraph (A) of section 1391(d)(1) (relating to period
    for which designation is in effect) is amended to read as
    follows:
                        ``(A)(i) in the case of an empowerment
                    zone, December 31, 2009, or
                        ``(ii) in the case of an enterprise
                    community, the close of the 10th calendar year
                    beginning on or after such date of
                    designation,''.

    SEC. 113. 20 PERCENT EMPLOYMENT CREDIT FOR ALL EMPOWERMENT ZONES.

        (a) 20 Percent Credit.--Subsection (b) of section 1396
    (relating to empowerment zone employment credit) is amended to
    read as follows:
        ``(b) Applicable Percentage.--For purposes of this section,
    the applicable percentage is 20 percent.''.
        (b) All Empowerment Zones Eligible for Credit.--Section
    1396 is amended by striking subsection (e).
        (c) Conforming Amendment.--Subsection (d) of section 1400
    is amended to read as follows:
        ``(d) Special Rule for Application of Employment Credit.--
    With respect to the DC Zone, section 1396(d)(1)(B) (relating to
    empowerment zone employment credit) shall be applied by
    substituting `the District of Columbia' for `such empowerment
    zone'.''.
        (d) Effective Date.--The amendments made by this section
    shall apply to wages paid or incurred after December 31, 2001.

    SEC. 114. INCREASED EXPENSING UNDER SECTION 179.

        (a) In General.--Subparagraph (A) of section 1397A(a)(1) is
    amended by striking ``$20,000'' and inserting ``$35,000''.
        (b) Expensing for Property Used in Developable Sites.--
    Section 1397A is amended by striking subsection (c).
        (c) Effective Date.--The amendments made by this section
    shall apply to taxable years beginning after December 31, 2001.

    SEC. 115. HIGHER LIMITS ON TAX-EXEMPT EMPOWERMENT ZONE FACILITY BONDS.

        (a) In General.--Paragraph (3) of section 1394(f) (relating
    to bonds for empowerment zones designated under section
    1391(g)) is amended to read as follows:
                ``(3) Empowerment zone facility bond.--For purposes
            of this subsection, the term `empowerment zone facility
            bond' means any bond which would be described in
            subsection (a) if--
                        ``(A) in the case of obligations issued
                    before January 1, 2002, only empowerment zones
                    designated under section 1391(g) were taken
                    into account under sections 1397C and 1397D,
                    and
                        ``(B) in the case of obligations issued
                    after December 31, 2001, all empowerment zones
                    (other than the District of Columbia Enterprise
                    Zone) were taken into account under sections
                    1397C and 1397D.''.
        (b) Effective Date.--The amendments made by this section
    shall apply to obligations issued after December 31, 2001.

    SEC. 116. NONRECOGNITION OF GAIN ON ROLLOVER OF EMPOWERMENT ZONE
                        INVESTMENTS.

        (a) In General.--Part III of subchapter U of chapter 1 is
    amended--
                (1) by redesignating subpart C as subpart D,
                (2) by redesignating sections 1397B and 1397C as
            sections 1397C and 1397D, respectively, and
                (3) by inserting after subpart B the following new
            subpart:

      ``Subpart C--Nonrecognition of Gain on Rollover of Empowerment Zone
                                  Investments

            ``Sec. 1397B. Nonrecognition of gain on rollover of empowerment
                      zone investments.

    ``SEC. 1397B. NONRECOGNITION OF GAIN ON ROLLOVER OF EMPOWERMENT ZONE
                        INVESTMENTS.

        ``(a) Nonrecognition of Gain.--In the case of any sale of a
    qualified empowerment zone asset held by the taxpayer for more
    than 1 year and with respect to which such taxpayer elects the
    application of this section, gain from such sale shall be
    recognized only to the extent that the amount realized on such
    sale exceeds--
                ``(1) the cost of any qualified empowerment zone
            asset (with respect to the same zone as the asset sold)
            purchased by the taxpayer during the 60-day period
            beginning on the date of such sale, reduced by
                ``(2) any portion of such cost previously taken
            into account under this section.
        ``(b) Definitions and Special Rules.--For purposes of this
    section--
                ``(1) Qualified empowerment zone asset.--
                        ``(A) In general.--The term `qualified
                    empowerment zone asset' means any property
                    which would be a qualified community asset (as
                    defined in section 1400F) if in section 1400F--
                                ``(i) references to empowerment
                            zones were substituted for references
                            to renewal communities,
                                ``(ii) references to enterprise
                            zone businesses (as defined in section
                            1397C) were substituted for references
                            to renewal community businesses, and
                                ``(iii) the date of the enactment
                            of this paragraph were substituted for
                            `December 31, 2001' each place it
                            appears.
                        ``(B) Treatment of dc zone.--The District
                    of Columbia Enterprise Zone shall not be
                    treated as an empowerment zone for purposes of
                    this section.
                ``(2) Certain gain not eligible for rollover.--This
            section shall not apply to--
                        ``(A) any gain which is treated as ordinary
                    income for purposes of this subtitle, and
                        ``(B) any gain which is attributable to
                    real property, or an intangible asset, which is
                    not an integral part of an enterprise zone
                    business.
                ``(3) Purchase.--A taxpayer shall be treated as
            having purchased any property if, but for paragraph
            (4), the unadjusted basis of such property in the hands
            of the taxpayer would be its cost (within the meaning
            of section 1012).
                ``(4) Basis adjustments.--If gain from any sale is
            not recognized by reason of subsection (a), such gain
            shall be applied to reduce (in the order acquired) the
            basis for determining gain or loss of any qualified
            empowerment zone asset which is purchased by the
            taxpayer during the 60-day period described in
            subsection (a). This paragraph shall not apply for
            purposes of section 1202.
                ``(5) Holding period.--For purposes of determining
            whether the nonrecognition of gain under subsection (a)
            applies to any qualified empowerment zone asset which
            is sold--
                        ``(A) the taxpayer's holding period for
                    such asset and the asset referred to in
                    subsection (a)(1) shall be determined without
                    regard to section 1223, and
                        ``(B) only the first year of the taxpayer's
                    holding period for the asset referred to in
                    subsection (a)(1) shall be taken into account
                    for purposes of paragraphs (2)(A)(iii), (3)(C),
                    and (4)(A)(iii) of section 1400F(b).''.
        (b) Conforming Amendments.--
                (1) Paragraph (23) of section 1016(a) is amended--
                        (A) by striking ``or 1045'' and inserting
                    ``1045, or 1397B'', and
                        (B) by striking ``or 1045(b)(4)'' and
                    inserting ``1045(b)(4), or 1397B(b)(4)''.
                (2) Paragraph (15) of section 1223 is amended to
            read as follows:
                ``(15) Except for purposes of sections 1202(a)(2),
            1202(c)(2)(A), 1400B(b), and 1400F(b), in determining
            the period for which the taxpayer has held property the
            acquisition of which resulted under section 1045 or
            1397B in the nonrecognition of any part of the gain
            realized on the sale of other property, there shall be
            included the period for which such other property has
            been held as of the date of such sale.''.
                (3) Paragraph (2) of section 1394(b) is amended--
                        (A) by striking ``section 1397C'' and
                    inserting ``section 1397D'', and
                        (B) by striking ``section 1397C(a)(2)'' and
                    inserting ``section 1397D(a)(2)''.
                (4) Paragraph (3) of section 1394(b) is amended--
                        (A) by striking ``section 1397B'' each
                    place it appears and inserting ``section
                    1397C'', and
                        (B) by striking ``section 1397B(d)'' and
                    inserting ``section 1397C(d)''.
                (5) Sections 1400(e) and 1400B(c) are each amended
            by striking ``section 1397B'' each place it appears and
            inserting ``section 1397C''.
                (6) The table of subparts for part III of
            subchapter U of chapter 1 is amended by striking the
            last item and inserting the following new items:

            ``Subpart C. Nonrecognition of gain on rollover of empowerment
                      zone investments.
            ``Subpart D. General provisions.''.

                (7) The table of sections for subpart D of such
            part III is amended to read as follows:

            ``Sec. 1397C. Enterprise zone business defined.
            ``Sec. 1397D. Qualified zone property defined.''.

        (c) Effective Date.--The amendments made by this section
    shall apply to qualified empowerment zone assets acquired after
    the date of the enactment of this Act.

    SEC. 117. INCREASED EXCLUSION OF GAIN ON SALE OF EMPOWERMENT ZONE
                        STOCK.

        (a) In General.--Subsection (a) of section 1202 is amended
    to read as follows:
        ``(a) Exclusion.--
                ``(1) In general.--In the case of a taxpayer other
            than a corporation, gross income shall not include 50
            percent of any gain from the sale or exchange of
            qualified small business stock held for more than 5
            years.
                ``(2) Empowerment zone businesses.--
                        ``(A) In general.--In the case of qualified
                    small business stock acquired after the date of
                    the enactment of this paragraph in a
                    corporation which is a qualified business
                    entity (as defined in section 1397C(b)) during
                    substantially all of the taxpayer's holding
                    period for such stock, paragraph (1) shall be
                    applied by substituting `60 percent' for `50
                    percent'.
                        ``(B) Certain rules to apply.--Rules
                    similar to the rules of paragraphs (5) and (7)
                    of section 1400B(b) shall apply for purposes of
                    this paragraph.
                        ``(C) Gain after 2014 not qualified.--
                    Subparagraph (A) shall not apply to gain
                    attributable to periods after December 31,
                    2014.
                        ``(D) Treatment of dc zone.--The District
                    of Columbia Enterprise Zone shall not be
                    treated as an empowerment zone for purposes of
                    this paragraph.''.
        (b) Conforming Amendments.--
                (1) Paragraph (8) of section 1(h) is amended by
            striking ``means'' and all that follows and inserting
            ``means the excess of--
                        ``(A) the gain which would be excluded from
                    gross income under section 1202 but for the
                    percentage limitation in section 1202(a), over
                        ``(B) the gain excluded from gross income
                    under section 1202.''.
                (2) The section heading for section 1202 is amended
            by striking ``50-percent'' and inserting ``partial''.
                (3) The table of sections for part I of subchapter
            P of chapter 1 is amended by striking ``50-percent''
            and inserting ``Partial''.
        (c) Effective Date.--The amendments made by this section
    shall apply to stock acquired after the date of the enactment
    of this Act.

                       Subtitle C--New Markets Tax Credit

    SEC. 121. NEW MARKETS 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. 45D. NEW MARKETS TAX CREDIT.

        ``(a) Allowance of Credit.--
                ``(1) In general.--For purposes of section 38, in
            the case of a taxpayer who holds a qualified equity
            investment on a credit allowance date of such
            investment which occurs during the taxable year, the
            new markets tax credit determined under this section
            for such taxable year is an amount equal to the
            applicable percentage of the amount paid to the
            qualified community development entity for such
            investment at its original issue.
                ``(2) Applicable percentage.--For purposes of
            paragraph (1), the applicable percentage is--
                        ``(A) 5 percent with respect to the first 3
                    credit allowance dates, and
                        ``(B) 6 percent with respect to the
                    remainder of the credit allowance dates.
                ``(3) Credit allowance date.--For purposes of
            paragraph (1), the term `credit allowance date' means,
            with respect to any qualified equity investment--
                        ``(A) the date on which such investment is
                    initially made, and
                        ``(B) each of the 6 anniversary dates of
                    such date thereafter.
        ``(b) Qualified Equity Investment.--For purposes of this
    section--
                ``(1) In general.--The term `qualified equity
            investment' means any equity investment in a qualified
            community development entity if--
                        ``(A) such investment is acquired by the
                    taxpayer at its original issue (directly or
                    through an underwriter) solely in exchange for
                    cash,
                        ``(B) substantially all of such cash is
                    used by the qualified community development
                    entity to make qualified low-income community
                    investments, and
                        ``(C) such investment is designated for
                    purposes of this section by the qualified
                    community development entity.
            Such term shall not include any equity investment
            issued by a qualified community development entity more
            than 5 years after the date that such entity receives
            an allocation under subsection (f). Any allocation not
            used within such 5-year period may be reallocated by
            the Secretary under subsection (f).
                ``(2) Limitation.--The maximum amount of equity
            investments issued by a qualified community development
            entity which may be designated under paragraph (1)(C)
            by such entity shall not exceed the portion of the
            limitation amount allocated under subsection (f) to
            such entity.
                ``(3) Safe harbor for determining use of cash.--The
            requirement of paragraph (1)(B) shall be treated as met
            if at least 85 percent of the aggregate gross assets of
            the qualified community development entity are invested
            in qualified low-income community investments.
                ``(4) Treatment of subsequent purchasers.--The term
            `qualified equity investment' includes any equity
            investment which would (but for paragraph (1)(A)) be a
            qualified equity investment in the hands of the
            taxpayer if such investment was a qualified equity
            investment in the hands of a prior holder.
                ``(5) Redemptions.--A rule similar to the rule of
            section 1202(c)(3) shall apply for purposes of this
            subsection.
                ``(6) Equity investment.--The term `equity
            investment' means--
                        ``(A) any stock (other than nonqualified
                    preferred stock as defined in section
                    351(g)(2)) in an entity which is a corporation,
                    and
                        ``(B) any capital interest in an entity
                    which is a partnership.
        ``(c) Qualified Community Development Entity.--For purposes
    of this section--
                ``(1) In general.--The term `qualified community
            development entity' means any domestic corporation or
            partnership if--
                        ``(A) the primary mission of the entity is
                    serving, or providing investment capital for,
                    low-income communities or low-income persons,
                        ``(B) the entity maintains accountability
                    to residents of low-income communities through
                    their representation on any governing board of
                    the entity or on any advisory board to the
                    entity, and
                        ``(C) the entity is certified by the
                    Secretary for purposes of this section as being
                    a qualified community development entity.
                ``(2) Special rules for certain organizations.--The
            requirements of paragraph (1) shall be treated as met
            by--
                        ``(A) any specialized small business
                    investment company (as defined in section
                    1044(c)(3)), and
                        ``(B) any community development financial
                    institution (as defined in section 103 of the
                    Community Development Banking and Financial
                    Institutions Act of 1994 (12 U.S.C. 4702)).
        ``(d) Qualified Low-Income Community Investments.--For
    purposes of this section--
                ``(1) In general.--The term `qualified low-income
            community investment' means--
                        ``(A) any capital or equity investment in,
                    or loan to, any qualified active low-income
                    community business,
                        ``(B) the purchase from another qualified
                    community development entity of any loan made
                    by such entity which is a qualified low-income
                    community investment,
                        ``(C) financial counseling and other
                    services specified in regulations prescribed by
                    the Secretary to businesses located in, and
                    residents of, low-income communities, and
                        ``(D) any equity investment in, or loan to,
                    any qualified community development entity.
                ``(2) Qualified active low-income community
            business.--
                        ``(A) In general.--For purposes of
                    paragraph (1), the term `qualified active low-
                    income community business' means, with respect
                    to any taxable year, any corporation (including
                    a nonprofit corporation) or partnership if for
                    such year--
                                ``(i) at least 50 percent of the
                            total gross income of such entity is
                            derived from the active conduct of a
                            qualified business within any low-
                            income community,
                                ``(ii) a substantial portion of the
                            use of the tangible property of such
                            entity (whether owned or leased) is
                            within any low-income community,
                                ``(iii) a substantial portion of
                            the services performed for such entity
                            by its employees are performed in any
                            low-income community,
                                ``(iv) less than 5 percent of the
                            average of the aggregate unadjusted
                            bases of the property of such entity is
                            attributable to collectibles (as
                            defined in section 408(m)(2)) other
                            than collectibles that are held
                            primarily for sale to customers in the
                            ordinary course of such business, and
                                ``(v) less than 5 percent of the
                            average of the aggregate unadjusted
                            bases of the property of such entity is
                            attributable to nonqualified financial
                            property (as defined in section
                            1397C(e)).
                        ``(B) Proprietorship.--Such term shall
                    include any business carried on by an
                    individual as a proprietor if such business
                    would meet the requirements of subparagraph (A)
                    were it incorporated.
                        ``(C) Portions of business may be qualified
                    active low-income community business.--The term
                    `qualified active low-income community
                    business' includes any trades or businesses
                    which would qualify as a qualified active low-
                    income community business if such trades or
                    businesses were separately incorporated.
                ``(3) Qualified business.--For purposes of this
            subsection, the term `qualified business' has the
            meaning given to such term by section 1397C(d); except
            that--
                        ``(A) in lieu of applying paragraph (2)(B)
                    thereof, the rental to others of real property
                    located in any low-income community shall be
                    treated as a qualified business if there are
                    substantial improvements located on such
                    property, and
                        ``(B) paragraph (3) thereof shall not
                    apply.
        ``(e) Low-Income Community.--For purposes of this section--
                ``(1) In general.--The term `low-income community'
            means any population census tract if--
                        ``(A) the poverty rate for such tract is at
                    least 20 percent, or
                        ``(B)(i) in the case of a tract not located
                    within a metropolitan area, the median family
                    income for such tract does not exceed 80
                    percent of statewide median family income, or
                        ``(ii) in the case of a tract located
                    within a metropolitan area, the median family
                    income for such tract does not exceed 80
                    percent of the greater of statewide median
                    family income or the metropolitan area median
                    family income.
            Subparagraph (B) shall be applied using possessionwide
            median family income in the case of census tracts
            located within a possession of the United States.
                ``(2) Targeted areas.--The Secretary may designate
            any area within any census tract as a low-income
            community if--
                        ``(A) the boundary of such area is
                    continuous,
                        ``(B) the area would satisfy the
                    requirements of paragraph (1) if it were a
                    census tract, and
                        ``(C) an inadequate access to investment
                    capital exists in such area.
                ``(3) Areas not within census tracts.--In the case
            of an area which is not tracted for population census
            tracts, the equivalent county divisions (as defined by
            the Bureau of the Census for purposes of defining
            poverty areas) shall be used for purposes of
            determining poverty rates and median family income.
        ``(f) National Limitation on Amount of Investments
    Designated.--
                ``(1) In general.--There is a new markets tax
            credit limitation for each calendar year. Such
            limitation is--
                        ``(A) $1,000,000,000 for 2001,
                        ``(B) $1,500,000,000 for 2002 and 2003,
                        ``(C) $2,000,000,000 for 2004 and 2005, and
                        ``(D) $3,500,000,000 for 2006 and 2007.
                ``(2) Allocation of limitation.--The limitation
            under paragraph (1) shall be allocated by the Secretary
            among qualified community development entities selected
            by the Secretary. In making allocations under the
            preceding sentence, the Secretary shall give priority
            to any entity--
                        ``(A) with a record of having successfully
                    provided capital or technical assistance to
                    disadvantaged businesses or communities, or
                        ``(B) which intends to satisfy the
                    requirement under subsection (b)(1)(B) by
                    making qualified low-income community
                    investments in 1 or more businesses in which
                    persons unrelated to such entity (within the
                    meaning of section 267(b) or 707(b)(1)) hold
                    the majority equity interest.
                ``(3) Carryover of unused limitation.--If the new
            markets tax credit limitation for any calendar year
            exceeds the aggregate amount allocated under paragraph
            (2) for such year, such limitation for the succeeding
            calendar year shall be increased by the amount of such
            excess. No amount may be carried under the preceding
            sentence to any calendar year after 2014.
        ``(g) Recapture of Credit In Certain Cases.--
                ``(1) In general.--If, at any time during the 7-
            year period beginning on the date of the original issue
            of a qualified equity investment in a qualified
            community development entity, there is a recapture
            event with respect to such investment, then the tax
            imposed by this chapter for the taxable year in which
            such event occurs shall be increased by the credit
            recapture amount.
                ``(2) Credit recapture amount.--For purposes of
            paragraph (1), the credit recapture amount is an amount
            equal to the sum of--
                        ``(A) the aggregate decrease in the credits
                    allowed to the taxpayer under section 38 for
                    all prior taxable years which would have
                    resulted if no credit had been determined under
                    this section with respect to such investment,
                    plus
                        ``(B) interest at the underpayment rate
                    established under section 6621 on the amount
                    determined under subparagraph (A) for each
                    prior taxable year for the period beginning on
                    the due date for filing the return for the
                    prior taxable year involved.
            No deduction shall be allowed under this chapter for
            interest described in subparagraph (B).
                ``(3) Recapture event.--For purposes of paragraph
            (1), there is a recapture event with respect to an
            equity investment in a qualified community development
            entity if--
                        ``(A) such entity ceases to be a qualified
                    community development entity,
                        ``(B) the proceeds of the investment cease
                    to be used as required of subsection (b)(1)(B),
                    or
                        ``(C) such investment is redeemed by such
                    entity.
                ``(4) Special rules.--
                        ``(A) Tax benefit rule.--The tax for the
                    taxable year shall be increased under paragraph
                    (1) only with respect to credits allowed by
                    reason of this section which were used to
                    reduce tax liability. In the case of credits
                    not so used to reduce tax liability, the
                    carryforwards and carrybacks under section 39
                    shall be appropriately adjusted.
                        ``(B) No credits against tax.--Any increase
                    in tax under this subsection shall not be
                    treated as a tax imposed by this chapter for
                    purposes of determining the amount of any
                    credit under this chapter or for purposes of
                    section 55.
        ``(h) Basis Reduction.--The basis of any qualified equity
    investment shall be reduced by the amount of any credit
    determined under this section with respect to such investment.
    This subsection shall not apply for purposes of sections 1202,
    1400B, and 1400F.
        ``(i) Regulations.--The Secretary shall prescribe such
    regulations as may be appropriate to carry out this section,
    including regulations--
                ``(1) which limit the credit for investments which
            are directly or indirectly subsidized by other Federal
            tax benefits (including the credit under section 42 and
            the exclusion from gross income under section 103),
                ``(2) which prevent the abuse of the purposes of
            this section,
                ``(3) which provide rules for determining whether
            the requirement of subsection (b)(1)(B) is treated as
            met,
                ``(4) which impose appropriate reporting
            requirements, and
                ``(5) which apply the provisions of this section to
            newly formed entities.''.
        (b) Credit Made Part of General Business Credit.--
                (1) In general.--Subsection (b) of section 38 is
            amended by striking ``plus'' at the end of paragraph
            (11), by striking the period at the end of paragraph
            (12) and inserting ``, plus'', and by adding at the end
            the following new paragraph:
                ``(13) the new markets tax credit determined under
            section 45D(a).''.
                (2) Limitation on carryback.--Subsection (d) of
            section 39 is amended by adding at the end the
            following new paragraph:
                ``(9) No carryback of new markets tax credit before
            january 1, 2001.--No portion of the unused business
            credit for any taxable year which is attributable to
            the credit under section 45D may be carried back to a
            taxable year ending before January 1, 2001.''.
        (c) Deduction for Unused Credit.--Subsection (c) of section
    196 is amended by striking ``and'' at the end of paragraph (7),
    by striking the period at the end of paragraph (8) and
    inserting ``, and'', and by adding at the end the following new
    paragraph:
                ``(9) the new markets tax credit determined under
            section 45D(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. 45D. New markets tax credit.''.

        (e) Effective Date.--The amendments made by this section
    shall apply to investments made after December 31, 2000.
        (f) Guidance on Allocation of National Limitation.--Not
    later than 120 days after the date of the enactment of this
    Act, the Secretary of the Treasury or the Secretary's delegate
    shall issue guidance which specifies--
                (1) how entities shall apply for an allocation
            under section 45D(f)(2) of the Internal Revenue Code of
            1986, as added by this section;
                (2) the competitive procedure through which such
            allocations are made; and
                (3) the actions that such Secretary or delegate
            shall take to ensure that such allocations are properly
            made to appropriate entities.
        (g) Audit and Report.--Not later than January 31 of 2004,
    2007, and 2010, the Comptroller General of the United States
    shall, pursuant to an audit of the new markets tax credit
    program established under section 45D of the Internal Revenue
    Code of 1986 (as added by subsection (a)), report to Congress
    on such program, including all qualified community development
    entities that receive an allocation under the new markets
    credit under such section.

             Subtitle D--Improvements in Low-Income Housing Credit

    SEC. 131. MODIFICATION OF STATE CEILING ON LOW-INCOME HOUSING CREDIT.

        (a) In General.--Clauses (i) and (ii) of section
    42(h)(3)(C) (relating to State housing credit ceiling) are
    amended to read as follows:
                                ``(i) the unused State housing
                            credit ceiling (if any) of such State
                            for the preceding calendar year,
                                ``(ii) the greater of--
                                        ``(I) $1.75 ($1.50 for
                                    2001) multiplied by the State
                                    population, or
                                        ``(II) $2,000,000,''.
        (b) Adjustment of State Ceiling for Increases in Cost-of-
    Living.--Paragraph (3) of section 42(h) (relating to housing
    credit dollar amount for agencies) is amended by adding at the
    end the following new subparagraph:
                        ``(H) Cost-of-living adjustment.--
                                ``(i) In general.--In the case of a
                            calendar year after 2002, the
                            $2,000,000 and $1.75 amounts in
                            subparagraph (C) shall each be
                            increased by an amount equal to--
                                        ``(I) such dollar amount,
                                    multiplied by
                                        ``(II) the cost-of-living
                                    adjustment determined under
                                    section 1(f)(3) for such
                                    calendar year by substituting
                                    `calendar year 2001' for
                                    `calendar year 1992' in
                                    subparagraph (B) thereof.
                                ``(ii) Rounding.--
                                        ``(I) In the case of the
                                    $2,000,000 amount, any increase
                                    under clause (i) which is not a
                                    multiple of $5,000 shall be
                                    rounded to the next lowest
                                    multiple of $5,000.
                                        ``(II) In the case of the
                                    $1.75 amount, any increase
                                    under clause (i) which is not a
                                    multiple of 5 cents shall be
                                    rounded to the next lowest
                                    multiple of 5 cents.''.
        (c) Conforming Amendments.--
                (1) Section 42(h)(3)(C), as amended by subsection
            (a), is amended--
                        (A) by striking ``clause (ii)'' in the
                    matter following clause (iv) and inserting
                    ``clause (i)''; and
                        (B) by striking ``clauses (i)'' in the
                    matter following clause (iv) and inserting
                    ``clauses (ii)''.
                (2) Section 42(h)(3)(D)(ii) is amended--
                        (A) by striking ``subparagraph (C)(ii)''
                    and inserting ``subparagraph (C)(i)''; and
                        (B) by striking ``clauses (i)'' in
                    subclause (II) and inserting ``clauses (ii)''.
        (d) Effective Date.--The amendments made by this section
    shall apply to calendar years after 2000.

    SEC. 132. MODIFICATION OF CRITERIA FOR ALLOCATING HOUSING CREDITS AMONG
                        PROJECTS.

        (a) Selection Criteria.--Subparagraph (C) of section
    42(m)(1) (relating to certain selection criteria must be used)
    is amended--
                (1) by inserting ``, including whether the project
            includes the use of existing housing as part of a
            community revitalization plan'' before the comma at the
            end of clause (iii); and
                (2) by striking clauses (v), (vi), and (vii) and
            inserting the following new clauses:
                                ``(v) tenant populations with
                            special housing needs,
                                ``(vi) public housing waiting
                            lists,
                                ``(vii) tenant populations of
                            individuals with children, and
                                ``(viii) projects intended for
                            eventual tenant ownership.''.
        (b) Preference for Community Revitalization Projects
    Located in Qualified Census Tracts.--Clause (ii) of section
    42(m)(1)(B) is amended by striking ``and'' at the end of
    subclause (I), by adding ``and'' at the end of subclause (II),
    and by inserting after subclause (II) the following new
    subclause:
                                        ``(III) projects which are
                                    located in qualified census
                                    tracts (as defined in
                                    subsection (d)(5)(C)) and the
                                    development of which
                                    contributes to a concerted
                                    community revitalization
                                    plan,''.

    SEC. 133. ADDITIONAL RESPONSIBILITIES OF HOUSING CREDIT AGENCIES.

        (a) Market Study; Public Disclosure of Rationale for Not
    Following Credit Allocation Priorities.--Subparagraph (A) of
    section 42(m)(1) (relating to responsibilities of housing
    credit agencies) is amended by striking ``and'' at the end of
    clause (i), by striking the period at the end of clause (ii)
    and inserting a comma, and by adding at the end the following
    new clauses:
                                ``(iii) a comprehensive market
                            study of the housing needs of low-
                            income individuals in the area to be
                            served by the project is conducted
                            before the credit allocation is made
                            and at the developer's expense by a
                            disinterested party who is approved by
                            such agency, and
                                ``(iv) a written explanation is
                            available to the general public for any
                            allocation of a housing credit dollar
                            amount which is not made in accordance
                            with established priorities and
                            selection criteria of the housing
                            credit agency.''.
        (b) Site Visits.--Clause (iii) of section 42(m)(1)(B)
    (relating to qualified allocation plan) is amended by inserting
    before the period ``and in monitoring for noncompliance with
    habitability standards through regular site visits''.

    SEC. 134. MODIFICATIONS TO RULES RELATING TO BASIS OF BUILDING WHICH IS
                        ELIGIBLE FOR CREDIT.

        (a) Adjusted Basis To Include Portion of Certain Buildings
    Used by Low-Income Individuals Who Are Not Tenants and by
    Project Employees.--Paragraph (4) of section 42(d) (relating to
    special rules relating to determination of adjusted basis) is
    amended--
                (1) by striking ``subparagraph (B)'' in
            subparagraph (A) and inserting ``subparagraphs (B) and
            (C)'';
                (2) by redesignating subparagraph (C) as
            subparagraph (D); and
                (3) by inserting after subparagraph (B) the
            following new subparagraph:
                        ``(C) Inclusion of basis of property used
                    to provide services for certain nontenants.--
                                ``(i) In general.--The adjusted
                            basis of any building located in a
                            qualified census tract (as defined in
                            paragraph (5)(C)) shall be determined
                            by taking into account the adjusted
                            basis of property (of a character
                            subject to the allowance for
                            depreciation and not otherwise taken
                            into account) used throughout the
                            taxable year in providing any community
                            service facility.
                                ``(ii) Limitation.--The increase in
                            the adjusted basis of any building
                            which is taken into account by reason
                            of clause (i) shall not exceed 10
                            percent of the eligible basis of the
                            qualified low-income housing project of
                            which it is a part. For purposes of the
                            preceding sentence, all community
                            service facilities which are part of
                            the same qualified low-income housing
                            project shall be treated as one
                            facility.
                                ``(iii) Community service
                            facility.--For purposes of this
                            subparagraph, the term `community
                            service facility' means any facility
                            designed to serve primarily individuals
                            whose income is 60 percent or less of
                            area median income (within the meaning
                            of subsection (g)(1)(B)).''.
        (b) Certain Native American Housing Assistance Disregarded
    in Determining Whether Building Is Federally Subsidized for
    Purposes of the Low-Income Housing Credit.--Subparagraph (E) of
    section 42(i)(2) (relating to determination of whether building
    is federally subsidized) is amended--
                (1) in clause (i), by inserting ``or the Native
            American Housing Assistance and Self-Determination Act
            of 1996 (25 U.S.C. 4101 et seq.) (as in effect on
            October 1, 1997)'' after ``this subparagraph)''; and
                (2) in the subparagraph heading, by inserting ``or
            native american housing assistance'' after ``home
            assistance''.

    SEC. 135. OTHER MODIFICATIONS.

        (a) Allocation of Credit Limit to Certain Buildings.--
                (1) The first sentence of section 42(h)(1)(E)(ii)
            is amended by striking ``(as of'' the first place it
            appears and inserting ``(as of the later of the date
            which is 6 months after the date that the allocation
            was made or''.
                (2) The last sentence of section 42(h)(3)(C) is
            amended by striking ``project which'' and inserting
            ``project which fails to meet the 10 percent test under
            paragraph (1)(E)(ii) on a date after the close of the
            calendar year in which the allocation was made or
            which''.
        (b) Determination of Whether Buildings Are Located in High
    Cost Areas.--The first sentence of section 42(d)(5)(C)(ii)(I)
    is amended--
                (1) by inserting ``either'' before ``in which 50
            percent''; and
                (2) by inserting before the period ``or which has a
            poverty rate of at least 25 percent''.

    SEC. 136. CARRYFORWARD RULES.

        (a) In General.--Clause (ii) of section 42(h)(3)(D)
    (relating to unused housing credit carryovers allocated among
    certain States) is amended by striking ``the excess'' and all
    that follows and inserting ``the excess (if any) of--
                                        ``(I) the unused State
                                    housing credit ceiling for the
                                    year preceding such year, over
                                        ``(II) the aggregate
                                    housing credit dollar amount
                                    allocated for such year.''.
        (b) Conforming Amendment.--The second sentence of section
    42(h)(3)(C) (relating to State housing credit ceiling) is
    amended by striking ``clauses (i) and (iii)'' and inserting
    ``clauses (i) through (iv)''.

    SEC. 137. EFFECTIVE DATE.

        Except as otherwise provided in this subtitle, the
    amendments made by this subtitle shall apply to--
                (1) housing credit dollar amounts allocated after
            December 31, 2000; and
                (2) buildings placed in service after such date to
            the extent paragraph (1) of section 42(h) of the
            Internal Revenue Code of 1986 does not apply to any
            building by reason of paragraph (4) thereof, but only
            with respect to bonds issued after such date.

         Subtitle E--Other Community Renewal and New Markets Assistance

     PART I--PROVISIONS RELATING TO HOUSING AND SUBSTANCE ABUSE PREVENTION
                                 AND TREATMENT

    SEC. 141. TRANSFER OF UNOCCUPIED AND SUBSTANDARD HUD-HELD HOUSING TO
                        LOCAL GOVERNMENTS AND COMMUNITY DEVELOPMENT
                        CORPORATIONS.

        Section 204 of the Departments of Veterans Affairs and
    Housing and Urban Development, and Independent Agencies
    Appropriations Act, 1997 (12 U.S.C. 1715z-11a) is amended--
                (1) by striking ``Flexible Authority.--'' and
            inserting ``Disposition of HUD-Owned Properties. (a)
            Flexible Authority for Multifamily Projects.--''; and
                (2) by adding at the end the following new
            subsection:
        ``(b) Transfer of Unoccupied and Substandard Housing to
    Local Governments and Community Development Corporations.--
                ``(1) Transfer authority.--Notwithstanding the
            authority under subsection (a) and the last sentence of
            section 204(g) of the National Housing Act (12 U.S.C.
            1710(g)), the Secretary of Housing and Urban
            Development shall transfer ownership of any qualified
            HUD property, subject to the requirements of this
            section, to a unit of general local government having
            jurisdiction for the area in which the property is
            located or to a community development corporation which
            operates within such a unit of general local government
            in accordance with this subsection, but only to the
            extent that units of general local government and
            community development corporations consent to transfer
            and the Secretary determines that such transfer is
            practicable.
                ``(2) Qualified hud properties.--For purposes of
            this subsection, the term `qualified HUD property'
            means any property for which, as of the date that
            notification of the property is first made under
            paragraph (3)(B), not less than 6 months have elapsed
            since the later of the date that the property was
            acquired by the Secretary or the date that the property
            was determined to be unoccupied or substandard, that is
            owned by the Secretary and is--
                        ``(A) an unoccupied multifamily housing
                    project;
                        ``(B) a substandard multifamily housing
                    project; or
                        ``(C) an unoccupied single family property
                    that--
                                ``(i) has been determined by the
                            Secretary not to be an eligible asset
                            under section 204(h) of the National
                            Housing Act (12 U.S.C. 1710(h)); or
                                ``(ii) is an eligible asset under
                            such section 204(h), but--
                                        ``(I) is not subject to a
                                    specific sale agreement under
                                    such section; and
                                        ``(II) has been determined
                                    by the Secretary to be
                                    inappropriate for continued
                                    inclusion in the program under
                                    such section 204(h) pursuant to
                                    paragraph (10) of such section.
                ``(3) Timing.--The Secretary shall establish
            procedures that provide for--
                        ``(A) time deadlines for transfers under
                    this subsection;
                        ``(B) notification to units of general
                    local government and community development
                    corporations of qualified HUD properties in
                    their jurisdictions;
                        ``(C) such units and corporations to
                    express interest in the transfer under this
                    subsection of such properties;
                        ``(D) a right of first refusal for transfer
                    of qualified HUD properties to units of general
                    local government and community development
                    corporations, under which--
                                ``(i) the Secretary shall establish
                            a period during which the Secretary may
                            not transfer such properties except to
                            such units and corporations;
                                ``(ii) the Secretary shall offer
                            qualified HUD properties that are
                            single family properties for purchase
                            by units of general local government at
                            a cost of $1 for each property, but
                            only to the extent that the costs to
                            the Federal Government of disposal at
                            such price do not exceed the costs to
                            the Federal Government of disposing of
                            property subject to the procedures for
                            single family property established by
                            the Secretary pursuant to the authority
                            under the last sentence of section
                            204(g) of the National Housing Act (12
                            U.S.C. 1710(g));
                                ``(iii) the Secretary may accept an
                            offer to purchase a property made by a
                            community development corporation only
                            if the offer provides for purchase on a
                            cost recovery basis; and
                                ``(iv) the Secretary shall accept
                            an offer to purchase such a property
                            that is made during such period by such
                            a unit or corporation and that complies
                            with the requirements of this
                            paragraph; and
                        ``(E) a written explanation, to any unit of
                    general local government or community
                    development corporation making an offer to
                    purchase a qualified HUD property under this
                    subsection that is not accepted, of the reason
                    that such offer was not acceptable.
                ``(4) Other disposition.--With respect to any
            qualified HUD property, if the Secretary does not
            receive an acceptable offer to purchase the property
            pursuant to the procedure established under paragraph
            (3), the Secretary shall dispose of the property to the
            unit of general local government in which property is
            located or to community development corporations
            located in such unit of general local government on a
            negotiated, competitive bid, or other basis, on such
            terms as the Secretary deems appropriate.
                ``(5) Satisfaction of indebtedness.--Before
            transferring ownership of any qualified HUD property
            pursuant to this subsection, the Secretary shall
            satisfy any indebtedness incurred in connection with
            the property to be transferred, by canceling the
            indebtedness.
                ``(6) Determination of status of properties.--To
            ensure compliance with the requirements of this
            subsection, the Secretary shall take the following
            actions:
                        ``(A) Upon enactment.--Upon the enactment
                    of this subsection, the Secretary shall
                    promptly assess each residential property owned
                    by the Secretary to determine whether such
                    property is a qualified HUD property.
                        ``(B) Upon acquisition.--Upon acquiring any
                    residential property, the Secretary shall
                    promptly determine whether the property is a
                    qualified HUD property.
                        ``(C) Updates.--The Secretary shall
                    periodically reassess the residential
                    properties owned by the Secretary to determine
                    whether any such properties have become
                    qualified HUD properties.
                ``(7) Tenant leases.--This subsection shall not
            affect the terms or the enforceability of any contract
            or lease entered into with respect to any residential
            property before the date that such property becomes a
            qualified HUD property.
                ``(8) Use of property.--Property transferred under
            this subsection shall be used only for appropriate
            neighborhood revitalization efforts, including
            homeownership, rental units, commercial space, and
            parks, consistent with local zoning regulations, local
            building codes, and subdivision regulations and
            restrictions of record.
                ``(9) Inapplicability to properties made available
            for homeless.--Notwithstanding any other provision of
            this subsection, this subsection shall not apply to any
            properties that the Secretary determines are to be made
            available for use by the homeless pursuant to subpart E
            of part 291 of title 24, Code of Federal Regulations,
            during the period that the properties are so available.
                ``(10) Protection of existing contracts.--This
            subsection may not be construed to alter, affect, or
            annul any legally binding obligations entered into with
            respect to a qualified HUD property before the property
            becomes a qualified HUD property.
                ``(11) Definitions.--For purposes of this
            subsection, the following definitions shall apply:
                        ``(A) Community development corporation.--
                    The term `community development corporation'
                    means a nonprofit organization whose primary
                    purpose is to promote community development by
                    providing housing opportunities for low-income
                    families.
                        ``(B) Cost recovery basis.--The term `cost
                    recovery basis' means, with respect to any sale
                    of a residential property by the Secretary,
                    that the purchase price paid by the purchaser
                    is equal to or greater than the sum of: (i) the
                    appraised value of the property, as determined
                    in accordance with such requirements as the
                    Secretary shall establish; and (ii) the costs
                    incurred by the Secretary in connection with
                    such property during the period beginning on
                    the date on which the Secretary acquires title
                    to the property and ending on the date on which
                    the sale is consummated.
                        ``(C) Multifamily housing project.--The
                    term `multifamily housing project' has the
                    meaning given the term in section 203 of the
                    Housing and Community Development Amendments of
                    1978.
                        ``(D) Residential property.--The term
                    `residential property' means a property that is
                    a multifamily housing project or a single
                    family property.
                        ``(E) Secretary.--The term `Secretary'
                    means the Secretary of Housing and Urban
                    Development.
                        ``(F) Severe physical problems.--The term
                    `severe physical problems' means, with respect
                    to a dwelling unit, that the unit--
                                ``(i) lacks hot or cold piped
                            water, a flush toilet, or both a
                            bathtub and a shower in the unit, for
                            the exclusive use of that unit;
                                ``(ii) on not less than three
                            separate occasions during the preceding
                            winter months, was uncomfortably cold
                            for a period of more than 6 consecutive
                            hours due to a malfunction of the
                            heating system for the unit;
                                ``(iii) has no functioning
                            electrical service, exposed wiring, any
                            room in which there is not a
                            functioning electrical outlet, or has
                            experienced three or more blown fuses
                            or tripped circuit breakers during the
                            preceding 90-day period;
                                ``(iv) is accessible through a
                            public hallway in which there are no
                            working light fixtures, loose or
                            missing steps or railings, and no
                            elevator; or
                                ``(v) has severe maintenance
                            problems, including water leaks
                            involving the roof, windows, doors,
                            basement, or pipes or plumbing
                            fixtures, holes or open cracks in walls
                            or ceilings, severe paint peeling or
                            broken plaster, and signs of rodent
                            infestation.
                        ``(G) Single family property.--The term
                    `single family property' means a 1- to 4-family
                    residence.
                        ``(H) Substandard.--The term `substandard'
                    means, with respect to a multifamily housing
                    project, that 25 percent or more of the
                    dwelling units in the project have severe
                    physical problems.
                        ``(I) Unit of general local government.--
                    The term `unit of general local government' has
                    the meaning given such term in section 102(a)
                    of the Housing and Community Development Act of
                    1974.
                        ``(J) Unoccupied.--The term `unoccupied'
                    means, with respect to a residential property,
                    that the unit of general local government
                    having jurisdiction over the area in which the
                    project is located has certified in writing
                    that the property is not inhabited.
                ``(12) Regulations.--
                        ``(A) Interim.--Not later than 30 days
                    after the date of the enactment of this
                    subsection, the Secretary shall issue such
                    interim regulations as are necessary to carry
                    out this subsection.
                        ``(B) Final.--Not later than 60 days after
                    the date of the enactment of this subsection,
                    the Secretary shall issue such final
                    regulations as are necessary to carry out this
                    subsection.''.

    SEC. 142. TRANSFER OF HUD ASSETS IN REVITALIZATION AREAS.

        In carrying out the program under section 204(h) of the
    National Housing Act (12 U.S.C. 1710(h)), upon the request of
    the chief executive officer of a county or the government of
    appropriate jurisdiction and not later than 60 days after such
    request is made, the Secretary of Housing and Urban Development
    shall designate as a revitalization area all portions of such
    county that meet the criteria for such designation under
    paragraph (3) of such section.

    SEC. 143. RISK-SHARING DEMONSTRATION.

        Section 249 of the National Housing Act (12 U.S.C. 1715z-
    14) is amended--
                (1) by striking the section heading and inserting
            the following:

                        ``risk-sharing demonstration'';

                (2) by striking ``reinsurance'' each place such
            term appears and insert ``risk-sharing'';
                (3) in subsection (a)--
                        (A) in the first sentence, by inserting
                    ``and with insured community development
                    financial institutions'' after ``private
                    mortgage insurers'';
                        (B) in the second sentence--
                                (i) by striking ``two'' and
                            inserting ``four''; and
                                (ii) by striking ``March 15, 1988''
                            and inserting ``the expiration of the
                            5-year period beginning on the date of
                            the enactment of the Community Renewal
                            Tax Relief Act of 2000''; and
                        (C) in the third sentence--
                                (i) by striking ``insured'' and
                            inserting ``for which risk of
                            nonpayment is shared''; and
                                (ii) by striking ``10 percent'' and
                            inserting ``20 percent'';
                (4) in subsection (b)--
                        (A) in the first sentence--
                                (i) by striking ``to provide'' and
                            inserting ``, in providing'';
                                (ii) by striking ``through'' and
                            inserting ``, to enter into''; and
                                (iii) by inserting ``and with
                            insured community development financial
                            institutions'' before the period at the
                            end;
                        (B) in the second sentence, by inserting
                    ``and insured community development financial
                    institutions'' after ``private mortgage
                    insurance companies'';
                        (C) by striking paragraph (1) and inserting
                    the following new paragraph:
                ``(1) assume a secondary percentage of loss on any
            mortgage insured pursuant to section 203(b), 234, or
            245 covering a one- to four-family dwelling, which
            percentage of loss shall be set forth in the risk-
            sharing contract, with the first percentage of loss to
            be borne by the Secretary;''; and
                        (D) in paragraph (2)--
                                (i) by striking ``carry out (under
                            appropriate delegation) such'' and
                            inserting ``perform or delegate
                            underwriting,'';
                                (ii) by striking ``function as the
                            Secretary pursuant to regulations,''
                            and inserting ``functions as the
                            Secretary''; and
                                (iii) by inserting before the
                            period at the end the following: ``and
                            shall set forth in the risk-sharing
                            contract'';
                (5) in subsection (c)--
                        (A) in the first sentence--
                                (i) by striking ``of'' the first
                            place it appears and inserting ``for'';
                                (ii) by inserting ``received by the
                            Secretary with a private mortgage
                            insurer or insured community
                            development financial institution''
                            after ``sharing of premiums'';
                                (iii) by striking ``insurance
                            reserves'' and inserting ``loss
                            reserves'';
                                (iv) by striking ``such insurance''
                            and inserting ``such risk-sharing
                            contract''; and
                                (v) by striking ``right'' and
                            inserting ``rights''; and
                        (B) in the second sentence--
                                (i) by inserting ``or insured
                            community development financial
                            institution'' after ``private mortgage
                            insurance company''; and
                                (ii) by striking ``for insurance''
                            and inserting ``for risk-sharing'';
                (6) in subsection (d), by inserting ``or insured
            community development financial institution'' after
            ``private mortgage insurance company''; and
                (7) by adding at the end the following new
            subsection:
        ``(e) Insured Community Development Financial
    Institution.--For purposes of this section, the term `insured
    community development financial institution' means a community
    development financial institution, as such term is defined in
    section 103 of Reigle Community Development and Regulatory
    Improvement Act of 1994 (12 U.S.C. 4702) that is an insured
    depository institution (as such term is defined in section 3 of
    the Federal Deposit Insurance Act (12 U.S.C. 1813)) or an
    insured credit union (as such term is defined in section 101 of
    the Federal Credit Union Act (12 U.S.C. 1752)).''.

    SEC. 144. PREVENTION AND TREATMENT OF SUBSTANCE ABUSE; SERVICES
                        PROVIDED THROUGH RELIGIOUS ORGANIZATIONS.

        Title V of the Public Health Service Act (42 U.S.C. 290aa
    et seq.) is amended by adding at the end the following part:

          ``Part G--Services Provided Through Religious Organizations

    ``SEC. 581. APPLICABILITY TO DESIGNATED PROGRAMS.

        ``(a) Designated Programs.--Subject to subsection (b), this
    part applies to discretionary and formula grant programs
    administered by the Substance Abuse and Mental Health Services
    Administration that make awards of financial assistance to
    public or private entities for the purpose of carrying out
    activities to prevent or treat substance abuse (in this part
    referred to as a `designated program'). Designated programs
    include the program under subpart II of part B of title XIX
    (relating to formula grants to the States).
        ``(b) Limitation.--This part does not apply to any award of
    financial assistance under a designated program for a purpose
    other than the purpose specified in subsection (a).
        ``(c) Definitions.--For purposes of this part (and subject
    to subsection (b)):
                ``(1) The term `designated program' has the meaning
            given such term in subsection (a).
                ``(2) The term `financial assistance' means a
            grant, cooperative agreement, or contract.
                ``(3) The term `program beneficiary' means an
            individual who receives program services.
                ``(4) The term `program participant' means a public
            or private entity that has received financial
            assistance under a designated program.
                ``(5) The term `program services' means treatment
            for substance abuse, or preventive services regarding
            such abuse, provided pursuant to an award of financial
            assistance under a designated program.
                ``(6) The term `religious organization' means a
            nonprofit religious organization.

    ``SEC. 582. RELIGIOUS ORGANIZATIONS AS PROGRAM PARTICIPANTS.

        ``(a) In General.--Notwithstanding any other provision of
    law, a religious organization, on the same basis as any other
    nonprofit private provider--
                ``(1) may receive financial assistance under a
            designated program; and
                ``(2) may be a provider of services under a
            designated program.
        ``(b) Religious Organizations.--The purpose of this section
    is to allow religious organizations to be program participants
    on the same basis as any other nonprofit private provider
    without impairing the religious character of such
    organizations, and without diminishing the religious freedom of
    program beneficiaries.
        ``(c) Nondiscrimination Against Religious Organizations.--
                ``(1) Eligibility as program participants.--
            Religious organizations are eligible to be program
            participants on the same basis as any other nonprofit
            private organization as long as the programs are
            implemented consistent with the Establishment Clause
            and Free Exercise Clause of the First Amendment to the
            United States Constitution. Nothing in this Act shall
            be construed to restrict the ability of the Federal
            Government, or a State or local government receiving
            funds under such programs, to apply to religious
            organizations the same eligibility conditions in
            designated programs as are applied to any other
            nonprofit private organization.
                ``(2) Nondiscrimination.--Neither the Federal
            Government nor a State or local government receiving
            funds under designated programs shall discriminate
            against an organization that is or applies to be a
            program participant on the basis that the organization
            has a religious character.
        ``(d) Religious Character and Freedom.--
                ``(1) Religious organizations.--Except as provided
            in this section, any religious organization that is a
            program participant shall retain its independence from
            Federal, State, and local government, including such
            organization's control over the definition,
            development, practice, and expression of its religious
            beliefs.
                ``(2) Additional safeguards.--Neither the Federal
            Government nor a State shall require a religious
            organization to--
                        ``(A) alter its form of internal
                    governance; or
                        ``(B) remove religious art, icons,
                    scripture, or other symbols,
            in order to be a program participant.
        ``(e) Employment Practices.--Nothing in this section shall
    be construed to modify or affect the provisions of any other
    Federal or State law or regulation that relates to
    discrimination in employment. A religious organization's
    exemption provided under section 702 of the Civil Rights Act of
    1964 regarding employment practices shall not be affected by
    its participation in, or receipt of funds from, a designated
    program.
        ``(f) Rights of Program Beneficiaries.--
                ``(1) In general.--If an individual who is a
            program beneficiary or a prospective program
            beneficiary objects to the religious character of a
            program participant, within a reasonable period of time
            after the date of such objection such program
            participant shall refer such individual to, and the
            appropriate Federal, State, or local government that
            administers a designated program or is a program
            participant shall provide to such individual (if
            otherwise eligible for such services), program services
            that--
                        ``(A) are from an alternative provider that
                    is accessible to, and has the capacity to
                    provide such services to, such individual; and
                        ``(B) have a value that is not less than
                    the value of the services that the individual
                    would have received from the program
                    participant to which the individual had such
                    objection.
            Upon referring a program beneficiary to an alternative
            provider, the program participant shall notify the
            appropriate Federal, State, or local government agency
            that administers the program of such referral.
                ``(2) Notices.--Program participants, public
            agencies that refer individuals to designated programs,
            and the appropriate Federal, State, or local
            governments that administer designated programs or are
            program participants shall ensure that notice is
            provided to program beneficiaries or prospective
            program beneficiaries of their rights under this
            section.
                ``(3) Additional requirements.--A program
            participant making a referral pursuant to paragraph (1)
            shall--
                        ``(A) prior to making such referral,
                    consider any list that the State or local
                    government makes available of entities in the
                    geographic area that provide program services;
                    and
                        ``(B) ensure that the individual makes
                    contact with the alternative provider to which
                    the individual is referred.
                ``(4) Nondiscrimination.--A religious organization
            that is a program participant shall not in providing
            program services or engaging in outreach activities
            under designated programs discriminate against a
            program beneficiary or prospective program beneficiary
            on the basis of religion or religious belief.
        ``(g) Fiscal Accountability.--
                ``(1) In general.--Except as provided in paragraph
            (2), any religious organization that is a program
            participant shall be subject to the same regulations as
            other recipients of awards of Federal financial
            assistance to account, in accordance with generally
            accepted auditing principles, for the use of the funds
            provided under such awards.
                ``(2) Limited audit.--With respect to the award
            involved, a religious organization that is a program
            participant shall segregate Federal amounts provided
            under award into a separate account from non-Federal
            funds. Only the award funds shall be subject to audit
            by the government.
        ``(h) Compliance.--With respect to compliance with this
    section by an agency, a religious organization may obtain
    judicial review of agency action in accordance with chapter 7
    of title 5, United States Code.

    ``SEC. 583. LIMITATIONS ON USE OF FUNDS FOR CERTAIN PURPOSES.

        ``No funds provided under a designated program shall be
    expended for sectarian worship, instruction, or
    proselytization.

    ``SEC. 584. EDUCATIONAL REQUIREMENTS FOR PERSONNEL IN DRUG TREATMENT
                        PROGRAMS.

        ``(a) Findings.--The Congress finds that--
                ``(1) establishing unduly rigid or uniform
            educational qualification for counselors and other
            personnel in drug treatment programs may undermine the
            effectiveness of such programs; and
                ``(2) such educational requirements for counselors
            and other personnel may hinder or prevent the provision
            of needed drug treatment services.
        ``(b) Nondiscrimination.--In determining whether personnel
    of a program participant that has a record of successful drug
    treatment for the preceding three years have satisfied State or
    local requirements for education and training, a State or local
    government shall not discriminate against education and
    training provided to such personnel by a religious
    organization, so long as such education and training includes
    basic content substantially equivalent to the content provided
    by nonreligious organizations that the State or local
    government would credit for purposes of determining whether the
    relevant requirements have been satisfied.''.

                 PART II--ADVISORY COUNCIL ON COMMUNITY RENEWAL

    SEC. 151. SHORT TITLE.

        This part may be cited as the ``Advisory Council on
    Community Renewal Act''.

    SEC. 152. ESTABLISHMENT.

        There is established an advisory council to be known as the
    ``Advisory Council on Community Renewal'' (in this part
    referred to as the ``Advisory Council'').

    SEC. 153. DUTIES OF ADVISORY COUNCIL.

        The Advisory Council shall advise the Secretary of Housing
    and Urban Development (in this part referred to as the
    ``Secretary'') on the designation of renewal communities
    pursuant to the amendment made by section 101 and on the
    exercise of any other authority granted to the Secretary
    pursuant to the amendments made by this title.

    SEC. 154. MEMBERSHIP.

        (a) Number and Appointment.--The Advisory Council shall be
    composed of 7 members appointed by the Secretary.
        (b) Chairperson.--The Chairperson of the Advisory Council
    (in this part referred to as the ``Chairperson'') shall be
    designated by the Secretary at the time of the appointment.
        (c) Terms.--Each member shall be appointed for the life of
    the Advisory Council.
        (d) Basic Pay.--
                (1) Chairperson.--The Chairperson shall be paid at
            a rate equal to the daily rate of basic pay for level
            III of the Executive Schedule for each day (including
            travel time) during which the Chairperson is engaged in
            the actual performance of duties vested in the Advisory
            Council.
                (2) Other members.--Members other than the
            Chairperson shall each be paid at a rate equal to the
            daily rate of basic pay for level IV of the Executive
            Schedule for each day (including travel time) during
            which they are engaged in the actual performance of
            duties vested in the Advisory Council.
        (e) Travel Expenses.--Each member shall receive travel
    expenses, including per diem in lieu of subsistence, in
    accordance with applicable provisions under subchapter I of
    chapter 57 of title 5, United States Code.
        (f) Quorum.--Four members of the Advisory Council shall
    constitute a quorum but a lesser number may hold hearings.
        (g) Meetings.--The Advisory Council shall meet at the call
    of the Secretary or the Chairperson.

    SEC. 155. POWERS OF ADVISORY COUNCIL.

        (a) Hearings and Sessions.--The Advisory Council may, for
    the purpose of carrying out this part, hold hearings, sit and
    act at times and places, take testimony, and receive evidence
    as the Advisory Council considers appropriate. The Advisory
    Council may administer oaths or affirmations to witnesses
    appearing before it.
        (b) Powers of Members and Agents.--Any member or agent of
    the Advisory Council may, if authorized by the Advisory
    Council, take any action which the Advisory Council is
    authorized to take by this section.
        (c) Obtaining Official Data.--The Advisory Council may
    secure directly from any department or agency of the United
    States information necessary to enable it to carry out this
    part. Upon request of the Chairperson of the Advisory Council,
    the head of that department or agency shall furnish that
    information to the Advisory Council.

    SEC. 156. REPORTS.

        (a) Annual Reports.--The Advisory Council shall submit to
    the Secretary an annual report for each fiscal year.
        (b) Interim Reports.--The Advisory Council may submit to
    the Secretary such interim reports as the Advisory Council
    considers appropriate.
        (c) Final Report.--The Advisory Council shall transmit a
    final report to the Secretary not later September 30, 2003. The
    final report shall contain a detailed statement of the findings
    and conclusions of the Advisory Council, together with any
    recommendations for legislative or administrative action that
    the Advisory Council considers appropriate.

    SEC. 157. TERMINATION.

        (a) In General.--The Advisory Council shall terminate 30
    days after submitting its final report under section 156(c).
        (b) Extension.--Notwithstanding subsection (a), the
    Secretary may postpone the termination of the Advisory Council
    for a period not to exceed 3 years after the Advisory Council
    submits its final report under section 156(c).

    SEC. 158. APPLICABILITY OF FEDERAL ADVISORY COMMITTEE ACT.

        The Federal Advisory Committee Act (5 U.S.C. App.) shall
    not apply to the Advisory Council.

    SEC. 159. RESOURCES.

        The Secretary shall provide to the Advisory Council
    appropriate resources so that the Advisory Council may carry
    out its duties and functions under this part.

    SEC. 160. EFFECTIVE DATE.

        This part shall be effective 30 days after the date of its
    enactment.

                          Subtitle F--Other Provisions

    SEC. 161. ACCELERATION OF PHASE-IN OF INCREASE IN VOLUME CAP ON PRIVATE
                        ACTIVITY BONDS.

        (a) In General.--Paragraphs (1) and (2) of section 146(d)
    (relating to State ceiling) are amended to read as follows:
                ``(1) In general.--The State ceiling applicable to
            any State for any calendar year shall be the greater
            of--
                        ``(A) an amount equal to $75 ($62.50 in the
                    case of calendar year 2001) multiplied by the
                    State population, or
                        ``(B) $225,000,000 ($187,500,000 in the
                    case of calendar year 2001).
                ``(2) Cost-of-living adjustment.--In the case of a
            calendar year after 2002, each of the dollar amounts
            contained in paragraph (1) shall be increased by an
            amount equal to--
                        ``(A) such dollar amount, multiplied by
                        ``(B) the cost-of-living adjustment
                    determined under section 1(f)(3) for such
                    calendar year by substituting `calendar year
                    2001' for `calendar year 1992' in subparagraph
                    (B) thereof.
            If any increase determined under the preceding sentence
            is not a multiple of $5 ($5,000 in the case of the
            dollar amount in paragraph (1)(B)), such increase shall
            be rounded to the nearest multiple thereof.''.
        (b) Effective Date.--The amendment made by this section
    shall apply to calendar years after 2000.

    SEC. 162. MODIFICATIONS TO EXPENSING OF ENVIRONMENTAL REMEDIATION
                        COSTS.

        (a) Expensing Not Limited to Sites in Targeted Areas.--
    Subsection (c) of section 198 is amended to read as follows:
        ``(c) Qualified Contaminated Site.--For purposes of this
    section--
                ``(1) In general.--The term `qualified contaminated
            site' means any area--
                        ``(A) which is held by the taxpayer for use
                    in a trade or business or for the production of
                    income, or which is property described in
                    section 1221(a)(1) in the hands of the
                    taxpayer, and
                        ``(B) at or on which there has been a
                    release (or threat of release) or disposal of
                    any hazardous substance.
                ``(2) National priorities listed sites not
            included.--Such term shall not include any site which
            is on, or proposed for, the national priorities list
            under section 105(a)(8)(B) of the Comprehensive
            Environmental Response, Compensation, and Liability Act
            of 1980 (as in effect on the date of the enactment of
            this section).
                ``(3) Taxpayer must receive statement from state
            environmental agency.--An area shall be treated as a
            qualified contaminated site with respect to
            expenditures paid or incurred during any taxable year
            only if the taxpayer receives a statement from the
            appropriate agency of the State in which such area is
            located that such area meets the requirement of
            paragraph (1)(B).
                ``(4) Appropriate state agency.--For purposes of
            paragraph (3), the chief executive officer of each
            State may, in consultation with the Administrator of
            the Environmental Protection Agency, designate the
            appropriate State environmental agency within 60 days
            of the date of the enactment of this section. If the
            chief executive officer of a State has not designated
            an appropriate environmental agency within such 60-day
            period, the appropriate environmental agency for such
            State shall be designated by the Administrator of the
            Environmental Protection Agency.''.
        (b) Extension of Termination Date.--Subsection (h) of
    section 198 is amended by striking ``2001'' and inserting
    ``2003''.
        (c) Effective Date.--The amendments made by this section
    shall apply to expenditures paid or incurred after the date of
    the enactment of this Act.

    SEC. 163. EXTENSION OF DC HOMEBUYER TAX CREDIT.

        Section 1400C(i) (relating to application of section) is
    amended by striking ``2002'' and inserting ``2004''.

    SEC. 164. EXTENSION OF DC ZONE THROUGH 2003.

        (a) In General.--The following provisions are amended by
    striking ``2002'' each place it appears and inserting ``2003'':
                (1) Section 1400(f).
                (2) Section 1400A(b).
        (b) Zero Capital Gains Rate.--Section 1400B (relating to
    zero percent capital gains rate) is amended--
                (1) by striking ``2003'' each place it appears and
            inserting ``2004'', and
                (2) by striking ``2007'' each place it appears and
            inserting ``2008''.

    SEC. 165. EXTENSION OF ENHANCED DEDUCTION FOR CORPORATE DONATIONS OF
                        COMPUTER TECHNOLOGY.

        (a) Expansion of Computer Technology Donations to Public
    Libraries.--
                (1) In general.--Paragraph (6) of section 170(e)
            (relating to special rule for contributions of computer
            technology and equipment for elementary or secondary
            school purposes) is amended by striking ``qualified
            elementary or secondary educational contribution'' each
            place it occurs in the headings and text and inserting
            ``qualified computer contribution''.
                (2) Expansion of eligible donees.--Clause (i) of
            section 170(e)(6)(B) (relating to qualified elementary
            or secondary educational contribution) is amended by
            striking ``or'' at the end of subclause (I), by adding
            ``or'' at the end of subclause (II), and by inserting
            after subclause (II) the following new subclause:
                                        ``(III) a public library
                                    (within the meaning of section
                                    213(2)(A) of the Library
                                    Services and Technology Act (20
                                    U.S.C. 9122(2)(A)), as in
                                    effect on the date of the
                                    enactment of the Community
                                    Renewal Tax Relief Act of 2000,
                                    established and maintained by
                                    an entity described in
                                    subsection (c)(1),''.
                (3) Extension of donation period.--Clause (ii) of
            section 170(e)(6)(B) is amended by striking ``2 years''
            and inserting ``3 years''.
        (b) Conforming Amendments.--
                (1) Section 170(e)(6)(B)(iv) is amended by striking
            ``in any grades of the K-12''.
                (2) The heading of paragraph (6) of section 170(e)
            is amended by striking ``elementary or secondary school
            purposes'' and inserting ``educational purposes''.
        (c) Extension of Deduction.--Section 170(e)(6)(F) (relating
    to termination) is amended by striking ``December 31, 2000''
    and inserting ``December 31, 2003''.
        (d) Standards as to Functionality and Suitability.--
    Subparagraph (B) of section 170(e)(6) is amended by striking
    ``and'' at the end of clause (vi), by striking the period at
    the end of clause (vii) and inserting ``, and'', and by adding
    at the end the following new clause:
                                ``(viii) the property meets such
                            standards, if any, as the Secretary may
                            prescribe by regulation to assure that
                            the property meets minimum
                            functionality and suitability standards
                            for educational purposes.''
        (e) Donations of Computers Reacquired by Manufacturer.--
    Paragraph (6) of section 170(e) is further amended by
    redesignating subparagraphs (D), (E), and (F) as subparagraphs
    (E), (F), and (G), respectively, and by inserting after
    subparagraph (C) the following new subparagraph:
                        ``(D) Donations of property reacquired by
                    manufacturer.--In the case of property which is
                    reacquired by the person who constructed the
                    property--
                                ``(i) subparagraph (B)(ii) shall be
                            applied to a contribution of such
                            property by such person by taking into
                            account the date that the original
                            construction of the property was
                            substantially completed, and
                                ``(ii) subparagraph (B)(iii) shall
                            not apply to such contribution.''
        (f) Effective Date.--The amendments made by this section
    shall apply to contributions made after December 31, 2000.

    SEC. 166. TREATMENT OF INDIAN TRIBAL GOVERNMENTS UNDER FEDERAL
                        UNEMPLOYMENT TAX ACT.

        (a) In General.--Section 3306(c)(7) (defining employment)
    is amended--
                (1) by inserting ``or in the employ of an Indian
            tribe,'' after ``service performed in the employ of a
            State, or any political subdivision thereof,''; and
                (2) by inserting ``or Indian tribes'' after
            ``wholly owned by one or more States or political
            subdivisions''.
        (b) Payments in Lieu of Contributions.--Section 3309
    (relating to State law coverage of services performed for
    nonprofit organizations or governmental entities) is amended--
                (1) in subsection (a)(2) by inserting ``, including
            an Indian tribe,'' after ``the State law shall provide
            that a governmental entity'';
                (2) in subsection (b)(3)(B) by inserting ``, or of
            an Indian tribe'' after ``of a State or political
            subdivision thereof'';
                (3) in subsection (b)(3)(E) by inserting ``or
            tribal'' after ``the State''; and
                (4) in subsection (b)(5) by inserting ``or of an
            Indian tribe'' after ``an agency of a State or
            political subdivision thereof''.
        (c) State Law Coverage.--Section 3309 (relating to State
    law coverage of services performed for nonprofit organizations
    or governmental entities) is amended by adding at the end the
    following new subsection:
        ``(d) Election by Indian Tribe.--The State law shall
    provide that an Indian tribe may make contributions for
    employment as if the employment is within the meaning of
    section 3306 or make payments in lieu of contributions under
    this section, and shall provide that an Indian tribe may make
    separate elections for itself and each subdivision, subsidiary,
    or business enterprise wholly owned by such Indian tribe. State
    law may require a tribe to post a payment bond or take other
    reasonable measures to assure the making of payments in lieu of
    contributions under this section. Notwithstanding the
    requirements of section 3306(a)(6), if, within 90 days of
    having received a notice of delinquency, a tribe fails to make
    contributions, payments in lieu of contributions, or payment of
    penalties or interest (at amounts or rates comparable to those
    applied to all other employers covered under the State law)
    assessed with respect to such failure, or if the tribe fails to
    post a required payment bond, then service for the tribe shall
    not be excepted from employment under section 3306(c)(7) until
    any such failure is corrected. This subsection shall apply to
    an Indian tribe within the meaning of section 4(e) of the
    Indian Self-Determination and Education Assistance Act (25
    U.S.C. 450b(e)).''.
        (d) Definitions.--Section 3306 (relating to definitions) is
    amended by adding at the end the following new subsection:
        ``(u) Indian Tribe.--For purposes of this chapter, the term
    `Indian tribe' has the meaning given to such term by section
    4(e) of the Indian Self-Determination and Education Assistance
    Act (25 U.S.C. 450b(e)), and includes any subdivision,
    subsidiary, or business enterprise wholly owned by such an
    Indian tribe.''.
        (e) Effective Date; Transition Rule.--
                (1) Effective date.--The amendments made by this
            section shall apply to service performed on or after
            the date of the enactment of this Act.
                (2) Transition rule.--For purposes of the Federal
            Unemployment Tax Act, service performed in the employ
            of an Indian tribe (as defined in section 3306(u) of
            the Internal Revenue Code of 1986 (as added by this
            section)) shall not be treated as employment (within
            the meaning of section 3306 of such Code) if--
                        (A) it is service which is performed before
                    the date of the enactment of this Act and with
                    respect to which the tax imposed under the
                    Federal Unemployment Tax Act has not been paid,
                    and
                        (B) such Indian tribe reimburses a State
                    unemployment fund for unemployment benefits
                    paid for service attributable to such tribe for
                    such period.

     TITLE II--2-YEAR EXTENSION OF AVAILABILITY OF MEDICAL SAVINGS ACCOUNTS

    SEC. 201. 2-YEAR EXTENSION OF AVAILABILITY OF MEDICAL SAVINGS ACCOUNTS.

        (a) In General.--Paragraphs (2) and (3)(B) of section
    220(i) (defining cut-off year) are each amended by striking
    ``2000'' each place it appears and inserting ``2002''.
        (b) Conforming Amendments.--
                (1) Paragraph (2) of section 220(j) is amended--
                        (A) by striking ``1998 or 1999'' each place
                    it appears and inserting ``1998, 1999, or
                    2001'',
                        (B) by striking ``600,000 (750,000 in the
                    case of 1999)'' and inserting ``750,000
                    (600,000 in the case of 1998)'', and
                        (C) by inserting after subparagraph (B) the
                    following new subparagraph:
                        ``(C) No limitation for 2000.--The
                    numerical limitation shall not apply for
                    2000.''
                (2) Subparagraph (A) of section 220(j)(4) is
            amended by striking ``and 1999'' and inserting ``1999,
            and 2001''.
        (c) Effective Date.--The amendments made by this section
    shall take effect on the date of the enactment of this Act.

    SEC. 202. MEDICAL SAVINGS ACCOUNTS RENAMED AS ARCHER MSAS.

        (a) In General.--The following provisions are amended by
    striking ``medical savings account'' each place it appears in
    the text and inserting ``Archer MSA'':
                (1) Section 26(b)(2)(Q).
                (2) Section 106(b).
                (3) Section 138(b).
                (4) Section 220.
                (5) Section 848(e)(1)(B)(iv).
                (6) Subsections (a)(2) and (d) of section 4973.
                (7) Subsections (c)(4) and (e)(1)(D) of section
            4975.
                (8) Subsections (a) and (d)(2)(B) of section 4980E.
                (9) Section 6051(a)(11).
        (b) Other Amendments.--
                (1) Paragraph (16) of section 62(a) is amended to
            read as follows:
                ``(16) Archer msas.--The deduction allowed by
            section 220.''
                (2) The following provisions are each amended by
            striking ``medical savings accounts'' each place it
            appears in the text and inserting ``Archer MSAs'':
                        (A) Paragraphs (4) and (7) of section
                    106(b).
                        (B) Subsections (c)(1)(D), (e)(2),
                    (f)(3)(A), (i)(4)(B), and (j) of section 220.
                        (C) Section 4973(d).
                        (D) Subsections (b) and (d)(1) of section
                    4980E.
                        (E) Section 6693(a)(2)(B).
                (3) Paragraph (1) of section 220(d) is amended by
            inserting ``as a medical savings account'' after
            ``United States''.
                (4) The heading for section 220(d) is amended by
            striking ``Medical Savings Account'' and inserting
            ``Archer MSA''.
                (5) The headings for sections 220(d)(1) and
            3231(e)(10) are each amended by striking ``Medical
            savings account'' and inserting ``Archer msas''.
                (6) The headings for sections 106(b), 138(f),
            220(i), and 4973(d) are each amended by striking
            ``Medical Savings Accounts'' and inserting ``Archer
            MSAs''.
                (7) The headings for section 220(c)(1)(C) and
            4975(c)(4) are each amended by striking ``medical
            savings accounts'' and inserting ``archer msas''.
                (8) The section heading for section 220 is amended
            to read as follows:

    ``SEC. 220. ARCHER MSAS.''

                (9) The item relating to section 220 in the table
            of sections for part VII of subchapter B of chapter 1
            is amended to read as follows:

            ``Sec. 220. Archer MSAs.''
                (10) The provisions amended by the preceding
            provisions of this section are further amended by
            striking ``a Archer'' each place it appears and
            inserting ``an Archer''.
                (11) Section 220(e)(1) is further amended by
            striking ``A Archer'' and inserting ``An Archer''.

               TITLE III--ADMINISTRATIVE AND TECHNICAL PROVISIONS

                     Subtitle A--Administrative Provisions

    SEC. 301. EXEMPTION OF CERTAIN REPORTING REQUIREMENTS.

        Section 3003(a)(1) of the Federal Reports Elimination and
    Sunset Act of 1995 (31 U.S.C. 1113 note) shall not apply to any
    report required to be submitted under any of the following
    provisions of law:
                (1) Section 13031(f) of the Consolidated Omnibus
            Budget Reconciliation Act of 1985 (19 U.S.C. 58c(f)).
                (2) Section 16(c) of the Foreign Trade Zones Act
            (19 U.S.C. 81p(c)).
                (3) The following provisions of the Tariff Act of
            1930:
                        (A) Section 330(c)(1) (19 U.S.C.
                    1330(c)(1)).
                        (B) Section 607(c) (19 U.S.C. 1607(c)).
                (4) Section 5 of the International Coffee Agreement
            Act of 1980 (19 U.S.C. 1356n).
                (5) Section 351(a)(2) of the Trade Expansion Act of
            1962 (19 U.S.C. 1981(a)(2)).
                (6) Section 502 of the Automotive Products Trade
            Act of 1965 (19 U.S.C. 2032).
                (7) Section 3131 of the Customs Enforcement Act of
            1986 (19 U.S.C. 2081).
                (8) The following provisions of the Trade Act of
            1974 (19 U.S.C. 2101 et seq.):
                        (A) Section 102(b)(4)(A)(ii)(I) (19 U.S.C.
                    2112(b)(4)(A)(ii)(I)).
                        (B) Section 102(e)(1) (19 U.S.C.
                    2112(e)(1)).
                        (C) Section 102(e)(2) (19 U.S.C.
                    2112(e)(2)).
                        (D) Section 104(d) (19 U.S.C. 2114(d)).
                        (E) Section 125(e) (19 U.S.C. 2135(e)).
                        (F) Section 135(e)(1) (19 U.S.C.
                    2155(e)(1)).
                        (G) Section 141(c) (19 U.S.C. 2171(c)).
                        (H) Section 162 (19 U.S.C. 2212).
                        (I) Section 163(b) (19 U.S.C. 2213(b)).
                        (J) Section 163(c) (19 U.S.C. 2213(c)).
                        (K) Section 203(b) (19 U.S.C. 2253(b)).
                        (L) Section 302(b)(2)(C) (19 U.S.C.
                    2412(b)(2)(C)).
                        (M) Section 303 (19 U.S.C. 2413).
                        (N) Section 309 (19 U.S.C. 2419).
                        (O) Section 407(a) (19 U.S.C. 2437(a)).
                        (P) Section 502(f) (19 U.S.C. 2462(f)).
                        (Q) Section 504 (19 U.S.C. 2464).
                (9) The following provisions of the Trade
            Agreements Act of 1979 (19 U.S.C. 2501 et seq.):
                        (A) Section 2(b) (19 U.S.C. 2503(b)).
                        (B) Section 3(c) (19 U.S.C. 2504(c)).
                        (C) Section 305(c) (19 U.S.C. 2515(c)).
                (10) Section 303(g)(1) of the Convention on
            Cultural Property Implementation Act (19 U.S.C.
            2602(g)(1)).
                (11) The following provisions of the Caribbean
            Basin Economic Recovery Act (19 U.S.C. 2701 et seq.):
                        (A) Section 212(a)(1)(A) (19 U.S.C.
                    2702(a)(1)(A)).
                        (B) Section 212(a)(2) (19 U.S.C.
                    2702(a)(2)).
                (12) The following provisions of the Omnibus Trade
            and Competitiveness Act of 1988 (19 U.S.C. 2901 et
            seq.):
                        (A) Section 1102 (19 U.S.C. 2902).
                        (B) Section 1103 (19 U.S.C. 2903).
                        (C) Section 1206(b) (19 U.S.C. 3006(b)).
                (13) Section 123(a) of the Customs and Trade Act of
            1990 (Public Law 101-382) (19 U.S.C. 2083).
                (14) Section 243(b)(2) of the Caribbean Basin
            Economic Recovery Expansion Act of 1990 (Public Law
            101-382).
                (15) The following provisions of the Internal
            Revenue Code of 1986:
                        (A) Section 6103(p)(5).
                        (B) Section 7608.
                        (C) Section 7802(f)(3).
                        (D) Section 8022(3).
                        (E) Section 9602(a).
                (16) The following provisions relating to the
            revenue laws of the United States:
                        (A) Section 1552(c) of the Tax Reform Act
                    of 1986 (100 Stat. 2753).
                        (B) Section 231 of the Deficit Reduction
                    Act of 1984 (26 U.S.C. 801 note).
                        (C) Section 208 of the Tax Treatment
                    Extension Act of 1977 (26 U.S.C. 911 note).
                        (D) Section 7105 of the Technical and
                    Miscellaneous Revenue Act of 1988 (45 U.S.C.
                    369).
                (17) Section 4008 of the Employee Retirement Income
            Security Act of 1974 (29 U.S.C. 1308).
                (18) Section 426 of the Black Lung Benefits Act (30
            U.S.C. 936(b)).
                (19) Section 7502(g) of title 31, United States
            Code.
                (20) The following provisions of the Social
            Security Act:
                        (A) Section 215(i)(2)(C)(i) (42 U.S.C.
                    415(i)(2)(C)(i)).
                        (B) Section 221(i)(2) (42 U.S.C.
                    421(i)(2)).
                        (C) Section 221(i)(3) (42 U.S.C.
                    421(i)(3)).
                        (D) Section 233(e)(1) (42 U.S.C.
                    433(e)(1)).
                        (E) Section 452(a)(10) (42 U.S.C.
                    652(a)(10)).
                        (F) Section 452(g)(3)(B) (42 U.S.C.
                    652(g)(3)(B)).
                        (G) Section 506(a)(1) (42 U.S.C. 706(a)).
                        (H) Section 908 (42 U.S.C. 1108).
                        (I) Section 1114(f) (42 U.S.C. 1314(f)).
                        (J) Section 1120 (42 U.S.C. 1320).
                        (K) Section 1161 (42 U.S.C. 1320c-10).
                        (L) Section 1875(b) (42 U.S.C. 1395ll(b)).
                        (M) Section 1881 (42 U.S.C. 1395rr).
                        (N) Section 1882 (42 U.S.C. 1395ss(f)(2)).
                (21) Section 104(b) of the Social Security
            Independence and Program Improvements Act of 1994 (42
            USC 904 note).
                (22) Section 10 of the Railroad Retirement Act of
            1937 (45 U.S.C. 231f).
                (23) The following provisions of the Railroad
            Retirement Act of 1974:
                        (A) Section 22(a)(1) (45 U.S.C.
                    231u(a)(1)).
                        (B) Section 22(b)(1) (45 U.S.C.
                    231u(b)(1)).
                (24) Section 502 of the Railroad Retirement
            Solvency Act of 1983 (45 U.S.C. 231f-1).
                (25) Section 47121(c) of title 49, United States
            Code.
                (26) The following provisions of the Omnibus Budget
            Reconciliation Act of 1987 (Public Law 100-203; 101
            Stat. 1330-182):
                        (A) Section 4007(c)(4) (42 U.S.C. 1395ww
                    note).
                        (B) Section 4079 (42 U.S.C. 1395mm note).
                        (C) Section 4205 (42 U.S.C. 1395i-3 note).
                        (D) Section 4215 (42 U.S.C. 1396r note).
                (27) The following provisions of the Inspector
            General Act of 1978 (Public Law 95-452):
                        (A) Section 5(b).
                        (B) Section 5(d).
                (28) The following provisions of the Public Health
            Service Act:
                        (A) In section 308(a) (42 U.S.C. 242m(a)),
                    subparagraphs (A), (B), (C), and (D) of
                    paragraph (1).
                        (B) Section 403 (42 U.S.C. 283).
                (29) Section 404 of the Health Services and Centers
            Amendments of 1978 (42 U.S.C. 242p) (Public Law 95-
            626).
                (30) The following provisions of the Older
            Americans Act of 1965:
                        (A) Section 206(d) (42 U.S.C. 3017(d)).
                        (B) Section 207 (42 U.S.C. 3018).
                (31) Section 308 of the Age Discrimination Act of
            1975 (42 U.S.C. 6106a(b)).
                (32) Section 509(c)(3) of the Americans with
            Disabilities Act 0f 1990 (42 U.S.C. 12209(c)(3)).
                (33) Section 4207(f) of the Omnibus Budget
            Reconciliation Act of 1990 (42 U.S.C. 1395b-1 note).

    SEC. 302. EXTENSION OF DEADLINES FOR IRS COMPLIANCE WITH CERTAIN NOTICE
                        REQUIREMENTS.

        (a) Annual Installment Agreement Notice.--Section 3506 of
    the Internal Revenue Service Restructuring and Reform Act of
    1998 is amended by striking ``July 1, 2000'' and inserting
    ``September 1, 2001''.
        (b) Notice Requirements Relating to Computation of
    Penalty.--Subsection (c) of section 3306 of the Internal
    Revenue Service Restructuring and Reform Act of 1998 is
    amended--
                (1) by striking ``December 31, 2000'' and inserting
            ``June 30, 2001'', and
                (2) by adding at the end the following: ``In the
            case of any notice of penalty issued after June 30,
            2001, and before July 1, 2003, the requirements of
            section 6751(a) of the Internal Revenue Code of 1986
            shall be treated as met if such notice contains a
            telephone number at which the taxpayer can request a
            copy of the taxpayer's assessment and payment history
            with respect to such penalty.''.
        (c) Notice Requirements Relating to Interest Imposed.--
    Subsection (c) of section 3308 of the Internal Revenue Service
    Restructuring and Reform Act of 1998 is amended--
                (1) by striking ``December 31, 2000'' and inserting
            ``June 30, 2001'', and
                (2) by adding at the end the following: ``In the
            case of any notice issued after June 30, 2001, and
            before July 1, 2003, to which section 6631 of the
            Internal Revenue Code of 1986 applies, the requirements
            of section 6631 of such Code shall be treated as met if
            such notice contains a telephone number at which the
            taxpayer can request a copy of the taxpayer's payment
            history relating to interest amounts included in such
            notice.''.

    SEC. 303. EXTENSION OF AUTHORITY FOR UNDERCOVER OPERATIONS.

        Paragraph (6), and the last sentence, of section 7608(c)
    are each amended by striking ``January 1, 2001'' and inserting
    ``January 1, 2006''.

    SEC. 304. CONFIDENTIALITY OF CERTAIN DOCUMENTS RELATING TO CLOSING AND
                        SIMILAR AGREEMENTS AND TO AGREEMENTS WITH FOREIGN
                        GOVERNMENTS.

        (a) Closing and Similar Agreements Treated As Return
    Information.--Paragraph (2) of section 6103(b) (defining return
    information) is amended by striking ``and'' at the end of
    subparagraph (B), by inserting ``and'' at the end of
    subparagraph (C), and by inserting after subparagraph (C) the
    following new subparagraph:
                        ``(D) any agreement under section 7121, and
                    any similar agreement, and any background
                    information related to such an agreement or
                    request for such an agreement,''.
        (b) Agreements With Foreign Governments.--
                (1) In general.--Subchapter B of chapter 61
            (relating to miscellaneous provisions) is amended by
            inserting after section 6104 the following new section:

    ``SEC. 6105. CONFIDENTIALITY OF INFORMATION ARISING UNDER TREATY
                        OBLIGATIONS.

        ``(a) In General.--Tax convention information shall not be
    disclosed.
        ``(b) Exceptions.--Subsection (a) shall not apply--
                ``(1) to the disclosure of tax convention
            information to persons or authorities (including courts
            and administrative bodies) which are entitled to such
            disclosure pursuant to a tax convention,
                ``(2) to any generally applicable procedural rules
            regarding applications for relief under a tax
            convention, or
                ``(3) in any case not described in paragraphs (1)
            or (2), to the disclosure of any tax convention
            information not relating to a particular taxpayer if
            the Secretary determines, after consultation with each
            other party to the tax convention, that such disclosure
            would not impair tax administration.
        ``(c) Definitions.--For purposes of this section--
                ``(1) Tax convention information.--The term `tax
            convention information' means any--
                        ``(A) agreement entered into with the
                    competent authority of one or more foreign
                    governments pursuant to a tax convention,
                        ``(B) application for relief under a tax
                    convention,
                        ``(C) any background information related to
                    such agreement or application,
                        ``(D) document implementing such agreement,
                    and
                        ``(E) any other information exchanged
                    pursuant to a tax convention which is treated
                    as confidential or secret under the tax
                    convention.
                ``(2) Tax convention.--The term `tax convention'
            means--
                        ``(A) any income tax or gift and estate tax
                    convention, or
                        ``(B) any other convention or bilateral
                    agreement (including multilateral conventions
                    and agreements and any agreement with a
                    possession of the United States) providing for
                    the avoidance of double taxation, the
                    prevention of fiscal evasion, nondiscrimination
                    with respect to taxes, the exchange of tax
                    relevant information with the United States, or
                    mutual assistance in tax matters.
        ``(d) Cross References.--

              ``For penalties for the unauthorized disclosure of tax
            convention information which is return or return information,
            see sections 7213, 7213A, and 7431.''.

                (2) Clerical amendment.--The table of sections for
            subchapter B of chapter 61 is amended by inserting
            after the item relating to section 6104 the following
            new item:

            ``Sec. 6105. Confidentiality of information arising under treaty
                      obligations.''.

        (c) Exception From Public Inspection as Written
    Determination.--
                (1) Closing and similar agreements.--Paragraph (1)
            of section 6110(b) is amended to read as follows:
                ``(1) Written determination.--
                        ``(A) In general.--The term `written
                    determination' means a ruling, determination
                    letter, technical advice memorandum, or Chief
                    Counsel advice.
                        ``(B) Exceptions.--Such term shall not
                    include any matter referred to in subparagraph
                    (C) or (D) of section 6103(b)(2).''.
                (2) Agreements with foreign governments.--Paragraph
            (1) of section 6110(l) is amended by inserting ``or
            6105'' after ``6104''.
        (d) Effective Date.--The amendments made by this section
    shall take effect on the date of the enactment of this Act.

    SEC. 305. INCREASE IN THRESHOLD FOR JOINT COMMITTEE REPORTS ON REFUNDS
                        AND CREDITS.

        (a) General Rule.--Subsections (a) and (b) of section 6405
    are each amended by striking ``$1,000,000'' and inserting
    ``$2,000,000''.
        (b) Effective Date.--The amendment made by subsection (a)
    shall take effect on the date of the enactment of this Act,
    except that such amendment shall not apply with respect to any
    refund or credit with respect to a report that has been made
    before such date of the enactment under section 6405 of the
    Internal Revenue Code of 1986.

    SEC. 306. TREATMENT OF MISSING CHILDREN WITH RESPECT TO CERTAIN TAX
                        BENEFITS.

        (a) In General.--Subsection (c) of section 151 (relating to
    additional exemption for dependents) is amended by adding at
    the end the following new paragraph:
                ``(6) Treatment of missing children.--
                        ``(A) In general.--Solely for the purposes
                    referred to in subparagraph (B), a child of the
                    taxpayer--
                                ``(i) who is presumed by law
                            enforcement authorities to have been
                            kidnapped by someone who is not a
                            member of the family of such child or
                            the taxpayer, and
                                ``(ii) who was (without regard to
                            this paragraph) the dependent of the
                            taxpayer for the portion of the taxable
                            year before the date of the kidnapping,
                    shall be treated as a dependent of the taxpayer
                    for all taxable years ending during the period
                    that the child is kidnapped.
                        ``(B) Purposes.--Subparagraph (A) shall
                    apply solely for purposes of determining--
                                ``(i) the deduction under this
                            section,
                                ``(ii) the credit under section 24
                            (relating to child tax credit), and
                                ``(iii) whether an individual is a
                            surviving spouse or a head of a
                            household (such terms are defined in
                            section 2).
                        ``(C) Comparable treatment for earned
                    income credit.--For purposes of section 32, an
                    individual--
                                ``(i) who is presumed by law
                            enforcement authorities to have been
                            kidnapped by someone who is not a
                            member of the family of such individual
                            or the taxpayer, and
                                ``(ii) who had, for the taxable
                            year in which the kidnapping occurred,
                            the same principal place of abode as
                            the taxpayer for more than one-half of
                            the portion of such year before the
                            date of the kidnapping, shall be
                            treated as meeting the requirement of
                            section 32(c)(3)(A)(ii) with respect to
                            a taxpayer for all taxable years ending
                            during the period that the individual
                            is kidnapped.
                        ``(D) Termination of treatment.--
                    Subparagraphs (A) and (C) shall cease to apply
                    as of the first taxable year of the taxpayer
                    beginning after the calendar year in which
                    there is a determination that the child is dead
                    (or, if earlier, in which the child would have
                    attained age 18).''
        (b) Effective Date.--The amendment made by this section
    shall apply to taxable years ending after the date of the
    enactment of this Act.

    SEC. 307. AMENDMENTS TO STATUTES REFERENCING YIELD ON 52-WEEK TREASURY
                        BILLS.

        (a) Amendment to the Act of February 26, 1931.--Section 6
    of the Act of February 26, 1931 (40 U.S.C. 258e-1) (relating to
    the interest rate on compensation owed for takings of property)
    is amended--
                (1) in paragraph (1), by striking ``the coupon
            issue yield equivalent (as determined by the Secretary
            of the Treasury) of the average accepted auction price
            for the last auction of 52 week United States Treasury
            bills settled immediately before'' and inserting ``the
            weekly average 1-year constant maturity Treasury yield,
            as published by the Board of Governors of the Federal
            Reserve System, for the calendar week preceding''; and
                (2) in paragraph (2), by striking ``the coupon
            issue yield equivalent (as determined by the Secretary
            of the Treasury) of the average accepted auction price
            for the last auction of 52 week United States Treasury
            bills settled immediately before'' and inserting ``the
            weekly average 1-year constant maturity Treasury yield,
            as published by the Board of Governors of the Federal
            Reserve System, for the calendar week preceding''.
        (b) Amendment to Title 18, United States Code.--Section
    3612(f)(2)(B) of title 18, United States Code (relating to the
    interest rate on unpaid criminal fines and penalties of more
    than $2,500) is amended by striking ``the coupon issue yield
    equivalent (as determined by the Secretary of the Treasury) of
    the average accepted auction price for the last auction of
    fifty-two week United States Treasury bills settled before''
    and inserting `the weekly average 1-year constant maturity
    Treasury yield, as published by the Board of Governors of the
    Federal Reserve System, for the calendar week preceding.''.
        (c) Amendment to the Internal Revenue Code.--Section
    995(f)(4) (relating to the interest rate on tax-deferred
    liability of shareholders of domestic international sales
    corporations) is amended by striking ``the average investment
    yield of United States Treasury bills with maturities of 52
    weeks which were auctioned during the 1-year period'' and
    inserting ``the average of the 1-year constant maturity
    Treasury yields, as published by the Board of Governors of the
    Federal Reserve System, for the 1-year period''.
        (d) Amendments to Title 28, United States Code.--
                (1) Amendment to section 1961.--Section 1961(a) of
            title 28, United States Code (relating to the interest
            rate on money judgments in civil cases recovered in
            Federal district court) is amended by striking ``the
            coupon issue yield equivalent (as determined by the
            Secretary of the Treasury) of the average accepted
            auction price for the last auction of fifty-two week
            United States Treasury bills settled immediately prior
            to'' and inserting ``the weekly average 1-year constant
            maturity Treasury yield, as published by the Board of
            Governors of the Federal Reserve System, for the
            calendar week preceding.''.
                (2) Amendment to section 2516.--Section 2516(b) of
            title 28, United States Code (relating to the interest
            rate on a judgment against the United States affirmed
            by the Supreme Court after review on petition of the
            United States) is amended by striking ``the coupon
            issue yield equivalent (as determined by the Secretary
            of the Treasury) of the average accepted auction price
            for the last auction of fifty-two week United States
            Treasury bills settled immediately before'' and
            inserting ``the weekly average 1-year constant maturity
            Treasury yield, as published by the Board of Governors
            of the Federal Reserve System, for the calendar week
            preceding''.

    SEC. 308. ADJUSTMENTS FOR CONSUMER PRICE INDEX ERROR.

        (a) Determinations by OMB.--As soon as practicable after
    the date of the enactment of this Act, the Director of the
    Office of Management and Budget shall determine with respect to
    each applicable Federal benefit program whether the CPI
    computation error for 1999 has or will result in a shortfall in
    payments to beneficiaries under such program (as compared to
    payments that would have been made if the error had not
    occurred). As soon as practicable after the date of the
    enactment of this Act, but not later than 60 days after such
    date, the Director shall direct the head of the Federal agency
    which administers such program to make a payment or payments
    that, insofar as the Director finds practicable and feasible--
                (1) are targeted to the amount of the shortfall
            experienced by individual beneficiaries, and
                (2) compensate for the shortfall.
        (b) Coordination With Federal Agencies.--As soon as
    practicable after the date of the enactment of this Act, each
    Federal agency that administers an applicable Federal benefit
    program shall, in accordance with such guidelines as are issued
    by the Director pursuant to this section, make an initial
    determination of whether, and the extent to which, the CPI
    computation error for 1999 has or will result in a shortfall in
    payments to beneficiaries of an applicable Federal benefit
    program administered by such agency. Not later than 30 days
    after such date, the head of such agency shall submit a report
    to the Director and to each House of the Congress of such
    determination, together with a complete description of the
    nature of the shortfall.
        (c) Implementation Pursuant to Agency Reports.--Upon
    receipt of the report submitted by a Federal agency pursuant to
    subsection (b), the Director shall review the initial
    determination of the agency, the agency's description of the
    nature of the shortfall, and the compensation payments proposed
    by the agency. Prior to directing payment of such payments
    pursuant to subsection (a), the Director shall make appropriate
    adjustments (if any) in the compensation payments proposed by
    the agency that the Director determines are necessary to comply
    with the requirements of subsection (a) and transmit to the
    agency a summary report of the review, indicating any
    adjustments made by the Director. The agency shall make the
    compensation payments as directed by the Director pursuant to
    subsection (a) in accordance with the Director's summary
    report.
        (d) Income Disregard Under Federal Means-Tested Benefit
    Programs.--A payment made under this section to compensate for
    a shortfall in benefits shall, in accordance with guidelines
    issued by the Director pursuant to this section, be disregarded
    in determining income under title VIII of the Social Security
    Act or any applicable Federal benefit program that is means-
    tested.
        (e) Funding.--Funds otherwise available under each
    applicable Federal benefit program for making benefit payments
    under such program are hereby made available for making
    compensation payments under this section in connection with
    such program.
        (f) No Judicial Review.--No action taken pursuant to this
    section shall be subject to judicial review.
        (g) Director's Report.--Not later than April 1, 2001, the
    Director shall submit to each House of the Congress a report on
    the activities performed by the Director pursuant to this
    section.
        (h) Definitions.--For purposes of this section:
                (1) Applicable federal benefit program.--The term
            ``applicable Federal benefit program'' means any
            program of the Government of the United States
            providing for regular or periodic payments or cash
            assistance paid directly to individual beneficiaries,
            as determined by the Director of the Office of
            Management and Budget.
                (2) Federal agency.--The term ``Federal agency''
            means a department, agency, or instrumentality of the
            Government of the United States.
                (3) CPI computation error for 1999.--The term ``CPI
            computation error for 1999'' means the error in the
            computation of the Consumer Price Index announced by
            the Bureau of Labor Statistics on September 28, 2000.
        (i) Tax Provisions.--In the case of taxable years (and
    other periods) beginning after December 31, 2000, if any
    Consumer Price Index (as defined in section 1(f)(5) of the
    Internal Revenue Code of 1986) reflects the CPI computation
    error for 1999--
                (1) the correct amount of such Index shall (in such
            manner and to such extent as the Secretary of the
            Treasury determines to be appropriate) be taken into
            account for purposes of such Code, and
                (2) tables prescribed under section 1(f) of such
            Code to reflect such correct amount shall apply in lieu
            of any tables that were prescribed based on the
            erroneous amount.

    SEC. 309. PREVENTION OF DUPLICATION OF LOSS THROUGH ASSUMPTION OF
                        LIABILITIES GIVING RISE TO A DEDUCTION.

        (a) In General.--Section 358 (relating to basis to
    distributees) is amended by adding at the end the following new
    subsection:
        ``(h) Special Rules for Assumption of Liabilities To Which
    Subsection (d) Does Not Apply.--
                ``(1) In general.--If, after application of the
            other provisions of this section to an exchange or
            series of exchanges, the basis of property to which
            subsection (a)(1) applies exceeds the fair market value
            of such property, then such basis shall be reduced (but
            not below such fair market value) by the amount
            (determined as of the date of the exchange) of any
            liability--
                        ``(A) which is assumed in exchange for such
                    property, and
                        ``(B) with respect to which subsection
                    (d)(1) does not apply to the assumption.
                ``(2) Exceptions.--Except as provided by the
            Secretary, paragraph (1) shall not apply to any
            liability if--
                        ``(A) the trade or business with which the
                    liability is associated is transferred to the
                    person assuming the liability as part of the
                    exchange, or
                        ``(B) substantially all of the assets with
                    which the liability is associated are
                    transferred to the person assuming the
                    liability as part of the exchange.
                ``(3) Liability.--For purposes of this subsection,
            the term `liability' shall include any fixed or
            contingent obligation to make payment, without regard
            to whether the obligation is otherwise taken into
            account for purposes of this title.''
        (b) Determination of Amount of Liability Assumed.--Section
    357(d)(1) is amended by inserting ``section 358(h),'' after
    ``section 358(d),''.
        (c) Application of Comparable Rules to Partnerships and S
    Corporations.--The Secretary of the Treasury or his delegate--
                (1) shall prescribe rules which provide appropriate
            adjustments under subchapter K of chapter 1 of the
            Internal Revenue Code of 1986 to prevent the
            acceleration or duplication of losses through the
            assumption of (or transfer of assets subject to)
            liabilities described in section 358(h)(3) of such Code
            (as added by subsection (a)) in transactions involving
            partnerships, and
                (2) may prescribe rules which provide appropriate
            adjustments under subchapter S of chapter 1 of such
            Code in transactions described in paragraph (1)
            involving S corporations rather than partnerships.
        (d) Effective Dates.--
                (1) In general.--The amendments made by this
            section shall apply to assumptions of liability after
            October 18, 1999.
                (2) Rules.--The rules prescribed under subsection
            (c) shall apply to assumptions of liability after
            October 18, 1999, or such later date as may be
            prescribed in such rules.

    SEC. 310. DISCLOSURE OF CERTAIN INFORMATION TO CONGRESSIONAL BUDGET
                        OFFICE.

        (a) Disclosure of Certain Tax Information.--
                (1) In general.--Subsection (j) of section 6103
            (relating to statistical use) is amended by adding at
            the end the following new paragraph:
                ``(6) Congressional budget office.--Upon written
            request by the Director of the Congressional Budget
            Office, the Secretary shall furnish to officers and
            employees of the Congressional Budget Office return
            information for the purpose of, but only to the extent
            necessary for, long-term models of the social security
            and medicare programs.''
                (2) Recordkeeping safeguards.--Section 6103(p) is
            amended--
                        (A) in paragraph (4)--
                                (i) in the matter preceding
                            subparagraph (A), by inserting ``the
                            Congressional Budget Office,'' after
                            ``General Accounting Office,'',
                                (ii) in subparagraph (E), by
                            striking ``commission or the General
                            Accounting Office'' and inserting
                            ``commission, the General Accounting
                            Office, or the Congressional Budget
                            Office'',
                                (iii) in subparagraph (F)(ii), by
                            striking ``or the General Accounting
                            Office,'' and inserting ``the General
                            Accounting Office, or the Congressional
                            Budget Office,'', and
                                (iv) in the matter following
                            subparagraph (F), by inserting ``or the
                            Congressional Budget Office'' after
                            ``General Accounting Office'' both
                            places it appears,
                        (B) in paragraph (5), by striking
                    ``commissions and the General Accounting
                    Office'' and inserting ``commissions, the
                    General Accounting Office, and the
                    Congressional Budget Office'', and
                        (C) in paragraph (6)(A), by inserting ``and
                    the Congressional Budget Office'' after
                    ``commissions''.
        (b) Confidentiality of Records.--
                (1) In general.--Section 203 of the Congressional
            Budget Act of 1974 (2 U.S.C. 603) is amended by adding
            at the end the following:
        ``(e) Level of Confidentiality.--With respect to
    information, data, estimates, and statistics obtained under
    sections 201(d) and 201(e), the Director shall maintain the
    same level of confidentiality as is required by law of the
    department, agency, establishment, or regulatory agency or
    commission from which it is obtained. Officers and employees of
    the Congressional Budget Office shall be subject to the same
    statutory penalties for unauthorized disclosure or use as
    officers or employees of the department, agency, establishment,
    or regulatory agency or commission from which it is
    obtained.''.
                (2) Conforming amendment.--Subsection (a) of
            section 203 of such Act is amended by striking
            ``subsections (c) and (d)'' and inserting ``subsections
            (c), (d), and (e)''.

                       Subtitle B--Technical Corrections

    SEC. 311. AMENDMENTS RELATED TO TICKET TO WORK AND WORK INCENTIVES
                        IMPROVEMENT ACT OF 1999.

        (a) Amendments Related to Section 502 of the Act.--
                (1) Section 280C(c)(1) is amended by striking ``or
            credit'' after ``deduction'' each place it appears.
                (2) Section 30A is amended by redesignating
            subsections (f) and (g) as subsections (g) and (h),
            respectively, and by inserting after subsection (e) the
            following new subsection:
        ``(f) Denial of Double Benefit.--Any wages or other
    expenses taken into account in determining the credit under
    this section may not be taken into account in determining the
    credit under section 41.''
          (b) Amendment Related to Section 545 of the Act.--Clause
    (ii) of section 857(b)(7)(B) is amended to read as follows:
          ``(ii) Exception for certain amounts.--Clause (i) shall
    not apply to amounts received directly or indirectly by a real
    estate investment trust--
          ``(I) for services furnished or rendered by a taxable
    REIT subsidiary that are described in paragraph (1)(B) of
    section 856(d), or
          ``(II) from a taxable REIT subsidiary that are described
    in paragraph (7)(C)(ii) of such section.''
          (c) Clarification Related to Section 538 of the Act.--The
    reference to section 332(b)(1) of the Internal Revenue Code of
    1986 in Treasury Regulation section 1.1502-34 shall be deemed
    to include a reference to section 732(f) of such Code.
          (d) Effective Date.--Subsection (c) and the amendments
    made by this section shall take effect as if included in the
    provisions of the Ticket to Work and Work Incentives
    Improvement Act of 1999 to which they relate.

    SEC. 312. AMENDMENTS RELATED TO TAX AND TRADE RELIEF EXTENSION ACT OF
                        1998.

        (a) Amendment Related to Section 1004(b) of the Act.--
    Subsection (d) of section 6104 is amended by adding at the end
    the following new paragraph:
                ``(6) Application to nonexempt charitable trusts
            and nonexempt private foundations.--The organizations
            referred to in paragraphs (1) and (2) of section
            6033(d) shall comply with the requirements of this
            subsection relating to annual returns filed under
            section 6033 in the same manner as the organizations
            referred to in paragraph (1).''.
        (b) Amendment Related to Section 4003 of the Act.--
    Subsection (b) of section 4003 of the Tax and Trade Relief
    Extension Act of 1998 is amended by inserting
    ``(7)(A)(i)(II),'' after ``(5)(A)(ii)(I),''.
        (c) Effective Date.--The amendments made by this section
    shall take effect as if included in the provisions of the Tax
    and Trade Relief Extension Act of 1998 to which they relate.

    SEC. 313. AMENDMENTS RELATED TO INTERNAL REVENUE SERVICE RESTRUCTURING
                        AND REFORM ACT OF 1998.

        (a) Amendments Related to Innocent Spouse Relief.--
                (1) Election may be made any time after deficiency
            asserted.--Subparagraph (B) of section 6015(c)(3) is
            amended by striking ``shall be made'' and inserting
            ``may be made at any time after a deficiency for such
            year is asserted but''.
                (2) Clarification regarding disallowance of refunds
            and credits under section 6015(c).--
                        (A) In general.--Section 6015 is amended by
                    redesignating subsection (g) as subsection (h)
                    and by inserting after subsection (f) the
                    following new subsection:
        ``(g) Credits and Refunds.--
                ``(1) In general.--Except as provided in paragraphs
            (2) and (3), notwithstanding any other law or rule of
            law (other than section 6511, 6512(b), 7121, or 7122),
            credit or refund shall be allowed or made to the extent
            attributable to the application of this section.
                ``(2) Res judicata.--In the case of any election
            under subsection (b) or (c), if a decision of a court
            in any prior proceeding for the same taxable year has
            become final, such decision shall be conclusive except
            with respect to the qualification of the individual for
            relief which was not an issue in such proceeding. The
            exception contained in the preceding sentence shall not
            apply if the court determines that the individual
            participated meaningfully in such prior proceeding.
                ``(3) Credit and refund not allowed under
            subsection (c).--No credit or refund shall be allowed
            as a result of an election under subsection (c).''.
                        (B) Conforming amendment.--Paragraph (3) of
                    section 6015(e) is amended to read as follows:
                ``(3) Limitation on tax court jurisdiction.--If a
            suit for refund is begun by either individual filing
            the joint return pursuant to section 6532--
                        ``(A) the Tax Court shall lose jurisdiction
                    of the individual's action under this section
                    to whatever extent jurisdiction is acquired by
                    the district court or the United States Court
                    of Federal Claims over the taxable years that
                    are the subject of the suit for refund, and
                        ``(B) the court acquiring jurisdiction
                    shall have jurisdiction over the petition filed
                    under this subsection.''.
                (3) Clarifications regarding review by tax court.--
                        (A) Paragraph (1) of section 6015(e) is
                    amended in the matter preceding subparagraph
                    (A) by inserting after ``individual'' the
                    following: ``against whom a deficiency has been
                    asserted and''.
                        (B) Subparagraph (A) of section 6015(e)(1)
                    is amended to read as follows:
                        ``(A) In general.--In addition to any other
                    remedy provided by law, the individual may
                    petition the Tax Court (and the Tax Court shall
                    have jurisdiction) to determine the appropriate
                    relief available to the individual under this
                    section if such petition is filed--
                                ``(i) at any time after the earlier
                            of--
                                        ``(I) the date the
                                    Secretary mails, by certified
                                    or registered mail to the
                                    taxpayer's last known address,
                                    notice of the Secretary's final
                                    determination of relief
                                    available to the individual, or
                                        ``(II) the date which is 6
                                    months after the date such
                                    election is filed with the
                                    Secretary, and
                                ``(ii) not later than the close of
                            the 90th day after the date described
                            in clause (i)(I).''.
                        (C) Subparagraph (B)(i) of section
                    6015(e)(1) is amended--
                                (i) by striking ``until the
                            expiration of the 90-day period
                            described in subparagraph (A)'' and
                            inserting ``until the close of the 90th
                            day referred to in subparagraph
                            (A)(ii)'', and
                                (ii) by inserting ``under
                            subparagraph (A)'' after ``filed with
                            the Tax Court''.
                        (D)(i) Subsection (e) of section 6015 is
                    amended by adding at the end the following new
                    paragraph:
                ``(5) Waiver.--An individual who elects the
            application of subsection (b) or (c) (and who agrees
            with the Secretary's determination of relief) may waive
            in writing at any time the restrictions in paragraph
            (1)(B) with respect to collection of the outstanding
            assessment (whether or not a notice of the Secretary's
            final determination of relief has been mailed).''.
                        (ii) Paragraph (2) of section 6015(e) is
                    amended to read as follows:
                ``(2) Suspension of running of period of
            limitations.--The running of the period of limitations
            in section 6502 on the collection of the assessment to
            which the petition under paragraph (1)(A) relates shall
            be suspended--
                        ``(A) for the period during which the
                    Secretary is prohibited by paragraph (1)(B)
                    from collecting by levy or a proceeding in
                    court and for 60 days thereafter, and
                        ``(B) if a waiver under paragraph (5) is
                    made, from the date the claim for relief was
                    filed until 60 days after the waiver is filed
                    with the Secretary.''.
        (b) Amendments Related to Procedure and Administration.--
                (1) Disputes involving $50,000 or less.--Section
            7463 is amended by adding at the end the following new
            subsection:
        ``(f) Additional Cases in Which Proceedings May Be
    Conducted Under This Section.--At the option of the taxpayer
    concurred in by the Tax Court or a division thereof before the
    hearing of the case, proceedings may be conducted under this
    section (in the same manner as a case described in subsection
    (a)) in the case of--
                ``(1) a petition to the Tax Court under section
            6015(e) in which the amount of relief sought does not
            exceed $50,000, and
                ``(2) an appeal under section 6330(d)(1)(A) to the
            Tax Court of a determination in which the unpaid tax
            does not exceed $50,000.''.
                (2) Authority to enjoin collection actions.--
                        (A) Section 6330(e)(1) is amended by adding
                    at the end the following: ``Notwithstanding the
                    provisions of section 7421(a), the beginning of
                    a levy or proceeding during the time the
                    suspension under this paragraph is in force may
                    be enjoined by a proceeding in the proper
                    court, including the Tax Court. The Tax Court
                    shall have no jurisdiction under this paragraph
                    to enjoin any action or proceeding unless a
                    timely appeal has been filed under subsection
                    (d)(1) and then only in respect of the unpaid
                    tax or proposed levy to which the determination
                    being appealed relates.''.
                        (B) Section 7421(a) is amended by inserting
                    ``6330(e)(1),'' after ``6246(b),''.
                (3) Clarification.--Paragraph (3) of section
            6331(k) is amended by striking ``(3), (4), and (5)''
            and inserting ``(3) and (4)''.
        (c) Amendment Related to Section 1103 of the Act.--
    Paragraph (6) of section 6103(k) is amended--
                (1) by inserting ``and an officer or employee of
            the Office of Treasury Inspector General for Tax
            Administration'' after ``internal revenue officer or
            employee'', and
                (2) by striking ``internal revenue'' in the heading
            and inserting ``certain''.
        (d) Amendment Related to Section 3401 of the Act.--Section
    6330(d)(1)(A) is amended by striking ``to hear'' and inserting
    ``with respect to''.
        (e) Amendment Related to Section 3509 of the Act.--
    Subparagraph (A) of section 6110(g)(5) is amended by inserting
    ``, any Chief Counsel advice,'' after ``technical advice
    memorandum''.
        (f) Effective Dates.--The amendments made by subsections
    (a) and (b) shall take effect on the date of the enactment of
    this Act. The amendments made by subsections (c), (d), and (e)
    shall take effect as if included in the provisions of the
    Internal Revenue Service Restructuring and Reform Act of 1998
    to which they relate.

    SEC. 314. AMENDMENTS RELATED TO TAXPAYER RELIEF ACT OF 1997.

        (a) Amendment Related to Section 101 of the Act.--Paragraph
    (4) of section 6211(b) is amended by striking ``sections 32 and
    34'' and inserting ``sections 24(d), 32, and 34''.
        (b) Amendment Related to Section 302 of the Act.--The last
    sentence of section 3405(e)(1)(B) is amended by inserting
    ``(other than a Roth IRA)'' after ``individual retirement
    plan''.
        (c) Amendment to Section 311 of the Act.--Paragraph (3) of
    section 311(e) of the Taxpayer Relief Act of 1997 (relating to
    election to recognize gain on assets held on January 1, 2001)
    is amended by adding at the end the following new sentence:
    ``Such an election shall not apply to any asset which is
    disposed of (in a transaction in which gain or loss is
    recognized in whole or in part) before the close of the 1-year
    period beginning on the date that the asset would have been
    treated as sold under such election.''
        (d) Amendment Related to Section 402 of the Act.--The flush
    sentence at the end of clause (ii) of section 56(a)(1)(A) is
    amended by inserting before ``or to any other property'' the
    following: ``(and the straight line method shall be used for
    such 1250 property)''.
        (e) Amendments Related to Section  1072 of the Act.--
                (1) Clause (ii) of section 415(c)(3)(D) and
            subparagraph (B) of section 403(b)(3) are each amended
            by striking ``section 125 or'' and inserting ``section
            125, 132(f)(4), or''.
                (2) Paragraph (2) of section 414(s) is amended by
            striking ``section 125, 402(e)(3)'' and inserting
            ``section 125, 132(f)(4), 402(e)(3)''.
        (f) Amendment Related to Section  1454 of the Act.--
    Subsection (a) of section 7436 is amended by inserting before
    the period at the end of the first sentence ``and the proper
    amount of employment tax under such determination''.
        (g) Effective Date.--The amendments made by this section
    shall take effect as if included in the provisions of the
    Taxpayer Relief of 1997 to which they relate.

    SEC. 315. AMENDMENTS RELATED TO BALANCED BUDGET ACT OF 1997.

        (a) Amendments Related to Section  9302 of the Act.--
                (1) Paragraph (1) of section 9302(j) of the
            Balanced Budget Act of 1997 is amended by striking
            ``tobacco products and cigarette papers and tubes'' and
            inserting ``cigarettes''.
                (2)(A) Subsection (h) of section 5702 is amended to
            read as follows:
        ``(h) Manufacturer of Cigarette Papers and Tubes.--
    `Manufacturer of cigarette papers and tubes' means any person
    who manufactures cigarette paper, or makes up cigarette paper
    into tubes, except for his own personal use or consumption.''
                (B) Section 5702, as amended by subparagraph (A),
            is amended by striking subsection (f) and by
            redesignating subsections (g) through (p) as
            subsections (f) through (o), respectively.
                (3) Subsection (c) of section 5761 is amended by
            adding at the end the following: ``This subsection 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 this subsection. No
            quantity of tobacco products other than the quantity
            referred to in the preceding sentence may be relanded
            or received as a personal use quantity.''.
        (b) Effective Date.--The amendments made by this section
    shall take effect as if included in section 9302 of the
    Balanced Budget Act of 1997.

    SEC. 316. AMENDMENTS RELATED TO SMALL BUSINESS JOB PROTECTION ACT OF
                        1996.

        (a) Amendment Related to Section 1201 of the Act.--
    Subparagraph (B) of section 51(d)(2) is amended--
                (1) by striking ``plan approved'' and inserting
            ``program funded'', and
                (2) by striking ``(relating to assistance for needy
            families with minor children)''.
        (b) Amendment Related to Section 1302 of the Act.--Clause
    (i) of section 1361(e)(1)(A) is amended by striking ``or''
    before ``(III)'' and by adding at the end the following: ``or
    (IV) an organization described in section 170(c)(1) which holds
    a contingent interest in such trust and is not a potential
    current beneficiary,''.
        (c) Amendment Related to Section 1401 of the Act.--Clause
    (ii) of section 401(k)(10)(B) is amended by adding at the end
    the following new sentence: ``Such term includes a distribution
    of an annuity contract from--
                                        ``(I) a trust which forms a
                                    part of a plan described in
                                    section 401(a) and which is
                                    exempt from tax under section
                                    501(a), or
                                        ``(II) an annuity plan
                                    described in section 403(a).''.
        (d) Amendment Related to Section 1427 of the Act.--Clause
    (ii) of section 219(c)(1)(B) is amended by striking ``and'' at
    the end of subclause (I), by redesignating subclause (II) as
    subclause (III), and by inserting after subclause (I) the
    following new subclause:
                                        ``(II) the amount of any
                                    designated nondeductible
                                    contribution (as defined in
                                    section 408(o)) on behalf of
                                    such spouse for such taxable
                                    year, and''.
        (e) Effective Date.--The amendments made by this section
    shall take effect as if included in the provisions of the Small
    Business Job Protection Act of 1996 to which they relate.

    SEC. 317. AMENDMENT RELATED TO REVENUE RECONCILIATION ACT OF 1990.

        (a) Amendment Related to Section 11511 of the Act.--
    Subparagraph (C) of section 43(c)(1) is amended--
                (1) by inserting ``(as defined in section 193(b))''
            after ``expenses'', and
                (2) by striking ``under section 193''.
        (b) Effective Date.--The amendment made by this section
    shall take effect as if included in section 11511 of the
    Revenue Reconciliation Act of 1990.

    SEC. 318. OTHER TECHNICAL CORRECTIONS.

        (a) Modified Endowment Contracts.--
                (1) Paragraph (2) of section 7702A(a) is amended by
            inserting ``or this paragraph'' before the period.
                (2) Clause (ii) of section 7702A(c)(3)(A) is
            amended by striking ``under the contract'' and
            inserting ``under the old contract''.
                (3) The amendments made by this subsection shall
            take effect as if included in the amendments made by
            section 5012 of the Technical and Miscellaneous Revenue
            Act of 1988.
        (b) Affiliated Corporations in Context of Worthless
    Securities.--
                (1) Subparagraph (A) of section 165(g)(3) is
            amended to read as follows:
                        ``(A) the taxpayer owns directly stock in
                    such corporation meeting the requirements of
                    section 1504(a)(2), and''.
                (2) Paragraph (3) of section 165(g) is amended by
            striking the last sentence.
                (3) The amendments made by this subsection shall
            apply to taxable years beginning after December 31,
            1984.
        (c) Certain Annuities Issued by Tax-Exempt Organizations
    Not Treated as Debt Instruments under Original Issue Discount
    Rules.--
                (1) Clause (ii) of section 1275(a)(1)(B) is amended
            by striking ``subchapter L'' and inserting ``subchapter
            L (or by an entity described in section 501(c) and
            exempt from tax under section 501(a) which would be
            subject to tax under subchapter L were it not so
            exempt)''.
                (2) The amendment made by this subsection shall
            take effect as if included in the amendments made by
            section 41 of the Tax Reform Act of 1984.
        (d) Tentative Carryback Adjustments of Losses From Section
    1256 Contracts.--
                (1) Subsection (a) of section 6411 is amended by
            striking ``section 1212(a)(1)'' and inserting
            ``subsection (a)(1) or (c) of section 1212''.
                (2) The amendment made by paragraph (1) shall take
            effect as if included in the amendments made by section
            504 of the Economic Recovery Tax Act of 1981.
        (e) Correction of Calculation of Amounts to be Deposited in
    Highway Trust Fund.--
                (1) Subsection (b) of section 9503 is amended by
            striking paragraph (5) and redesignating paragraph (6)
            as paragraph (5).
                (2) The amendment made by paragraph (1) shall apply
            with respect to taxes received in the Treasury after
            the date of the enactment of this Act.
        (f) Expenditures From Vaccine Injury Compensation Trust
    Fund.--Section 9510(c)(1)(A) is amended by striking ``December
    31, 1999'' and inserting ``October 18, 2000''.

    SEC. 319. CLERICAL CHANGES.

                (1) Clause (i) of section 45(d)(7)(A) is amended by
            striking ``paragraph (3)(A)'' and inserting
            ``subsection (c)(3)(A)''.
                (2) Subsection (f) of section 67 is amended by
            striking ``the last sentence'' and inserting ``the
            second sentence''.
                (3) The heading for paragraph (5) of section 408(d)
            is amended to read as follows:
                ``(5) Distributions of excess contributions after
            due date for taxable year and certain excess rollover
            contributions.--''.
                (4) Paragraph (3) of section 475(g) is amended by
            striking ``267(b) of'' and inserting ``267(b) or''.
                (5) The heading for subparagraph (B) of section
            529(e)(3) is amended by striking ``under guaranteed
            plans''.
                (6) Clause (iii) of section 530(d)(4)(B) is amended
            by striking ``; or'' at the end and inserting ``, or''.
                (7) Paragraphs (1)(C) and (2)(C) of section 664(d)
            are each amended by striking the period after
            ``subsection (g))''.
                (8)(A) Subsection (e) of section 678 is amended by
            striking ``an electing small business corporation'' and
            inserting ``an S corporation''.
                (B) Clause (v) of section 6103(e)(1)(D) is amended
            to read as follows:
                                ``(v) if the corporation was an S
                            corporation, any person who was a
                            shareholder during any part of the
                            period covered by such return during
                            which an election under section 1362(a)
                            was in effect, or''.
                (9) Paragraph (7) of section 856(c) is amended by
            striking ``paragraph (4)(B)(ii)(III)'' and inserting
            ``paragraph (4)(B)(iii)(III)''.
                (10) Subparagraph (A) of section 856(l)(4) is
            amended by striking ``paragraph (9)(D)(ii)'' and
            inserting ``subsection (d)(9)(D)(ii)''.
                (11) Subparagraph (B) of section 871(f)(2) is
            amended by striking ``19 U.S.C.'' and inserting ``(19
            U.S.C.''.
                (12) Subparagraph (B) of section 995(b)(3) is
            amended by striking ``the Military Security Act of 1954
            (22 U.S.C. 1934)'' and inserting ``section 38 of the
            International Security Assistance and Arms Export
            Control Act of 1976 (22 U.S.C. 2778)''.
                (13) Section 1391(g)(3)(C) is amended by striking
            ``paragraph (1)(B)'' and inserting ``paragraph (1)''.
                (14)(A) Paragraph (2) of section 2035(c) is amended
            by striking ``paragraph (1)'' and inserting
            ``subsection (a)''.
                (B) Subsection (d) of section 2035 is amended by
            inserting ``and paragraph (1) of subsection (c)'' after
            ``Subsection (a)''.
                (15) Paragraph (5) of section 3121(a) is amended by
            striking the semicolon at the end of subparagraph (G)
            and inserting a comma.
                (16) Subparagraph (B) of section 4946(c)(3) is
            amended by striking ``the lowest rate of compensation
            prescribed for GS-16 of the General Schedule under
            section 5332'' and inserting ``the lowest rate of basic
            pay for the Senior Executive Service under section
            5382''.
                (17) Subsection (p) of section 6103 is amended--
                        (A) in paragraph (4), in the matter
                    preceding subparagraph (A)--
                                (i) by striking the second comma
                            after ``(13)'', and
                                (ii) by striking ``(7)'' and all
                            that follows through ``shall, as a
                            condition'' and inserting ``(7), (8),
                            (9), (12), (15), or (16) or any other
                            person described in subsection (l)(16)
                            shall, as a condition'', and
                        (B) in paragraph (4)(F)(ii), by striking
                    the second comma after ``(14)''.
                (18) Paragraph (5) of section 6166(k) is amended by
            striking ``2035(d)(4)'' and inserting ``2035(c)(2)''.
                (19) Subsection (a) of section 6512 is amended by
            striking ``; and'' at the end of paragraphs (1), (2),
            and (5) and inserting ``, and''.
                (20) Paragraph (1) of section 6611(g) is amended by
            striking the comma after ``(b)(3)''.
                (21) Subparagraphs (A) and (B) of section
            6655(e)(5) are amended by striking ``subsections (d)(5)
            and (l)(3)(B)'' and inserting ``subsection (d)(5)''.
                (22) The subchapter heading for subchapter D of
            chapter 67 is amended by capitalizing the first letter
            of the second word.
                (23)(A) Section 6724(d)(1)(B) is amended by
            striking clauses (xiv) through (xvii) and inserting the
            following:
                                ``(xiv) subparagraph (A) or (C) of
                            subsection (c)(4) of section 4093
                            (relating to information reporting with
                            respect to tax on diesel and aviation
                            fuels),
                                ``(xv) section 4101(d) (relating to
                            information reporting with respect to
                            fuels taxes),
                                ``(xvi) subparagraph (C) of section
                            338(h)(10) (relating to information
                            required to be furnished to the
                            Secretary in case of elective
                            recognition of gain or loss), or
                                ``(xvii) section 264(f)(5)(A)(iv)
                            (relating to reporting with respect to
                            certain life insurance and annuity
                            contracts), and''.
                (B) Section 6010(o)(4)(C) of the Internal Revenue
            Service Restructuring and Reform Act of 1998 is amended
            by striking ``inserting `or', and by adding at the
            end'' and inserting ``inserting `, or', and by adding
            after subparagraph (Z)''.
                (24) Subsection (a) of section 7421 is amended by
            striking ``6672(b)'' and inserting ``6672(c)''.
                (25) Paragraph (3) of section 7430(c) is amended--
                        (A) in the paragraph heading, by striking
                    ``Attorneys'' and inserting ``Attorneys' '',
                    and
                        (B) in subparagraph (B), by striking
                    ``attorneys fees'' each place it appears and
                    inserting ``attorneys' fees''.
                (26) Paragraph (2) of section 7603(b) is amended by
            striking the semicolon at the end of subparagraphs (A),
            (B), (C), (D), (E), (F), and (G) and inserting a comma.
                (27) Clause (ii) of section 7802(b)(2)(B) is
            amended by striking ``; and'' at the end and inserting
            ``, and''.
                (28) Paragraph (3) of section 7811(a) is amended by
            striking ``taxpayer assistance order'' and inserting
            ``Taxpayer Assistance Order''.
                (29) Paragraph (1) of section 7811(d) is amended by
            striking ``Ombudsman's'' and inserting ``National
            Taxpayer Advocate's''.
                (30) Paragraph (3) of section 7872(f) is amended by
            striking ``foregoing'' and inserting ``forgoing''.

            TITLE IV--TAX TREATMENT OF SECURITIES FUTURES CONTRACTS

    SEC. 401. TAX TREATMENT OF SECURITIES FUTURES CONTRACTS.

        (a) In General.--Subpart IV of subchapter P of chapter 1
    (relating to special rules for determining gains and losses) is
    amended by inserting after section 1234A the following new
    section:

    ``SEC. 1234B. GAINS OR LOSSES FROM SECURITIES FUTURES CONTRACTS.

        ``(a) Treatment of Gain or Loss.--
                ``(1) In general.--Gain or loss attributable to the
            sale or exchange of a securities futures contract shall
            be considered gain or loss from the sale or exchange of
            property which has the same character as the property
            to which the contract relates has in the hands of the
            taxpayer (or would have in the hands of the taxpayer if
            acquired by the taxpayer).
                ``(2) Nonapplication of subsection.--This
            subsection shall not apply to--
                        ``(A) a contract which constitutes property
                    described in paragraph (1) or (7) of section
                    1221(a), and
                        ``(B) any income derived in connection with
                    a contract which, without regard to this
                    subsection, is treated as other than gain from
                    the sale or exchange of a capital asset.
        ``(b) Short-Term Gains and Losses.--Except as provided in
    the regulations under section 1092(b) or this section, if gain
    or loss on the sale or exchange of a securities futures
    contract to sell property is considered as gain or loss from
    the sale or exchange of a capital asset, such gain or loss
    shall be treated as short-term capital gain or loss.
        ``(c) Securities Futures Contract.--For purposes of this
    section, the term `securities futures contract' means any
    security future (as defined in section 3(a)(55)(A) of the
    Securities Exchange Act of 1934, as in effect on the date of
    the enactment of this section).
        ``(d) Contracts Not Treated as Commodity Futures
    Contracts.--For purposes of this title, a securities futures
    contract shall not be treated as a commodity futures contract.
        ``(e) Regulations.--The Secretary shall prescribe such
    regulations as may be appropriate to provide for the proper
    treatment of securities futures contracts under this title.''
        (b) Terminations, Etc.--Section 1234A is amended--
                (1) by inserting ``(other than a securities futures
            contract, as defined in section 1234B)'' after ``right
            or obligation'' in paragraph (1),
                (2) by striking ``or'' at the end of paragraph (1),
                (3) by adding ``or'' at the end of paragraph (2),
            and
                (4) by inserting after paragraph (2) the following
            new paragraph:
                ``(3) a securities futures contract (as so defined)
            which is a capital asset in the hands of the
            taxpayer,''.
        (c) Nonrecognition Under Section 1032.--The second sentence
    of section 1032(a) is amended by inserting ``, or with respect
    to a securities futures contract (as defined in section
    1234B),'' after ``an option''.
        (d) Treatment Under Wash Sales Rules.--Section 1091 is
    amended by adding at the end the following new subsection:
        ``(f) Cash Settlement.--This section shall not fail to
    apply to a contract or option to acquire or sell stock or
    securities solely by reason of the fact that the contract or
    option settles in (or could be settled in) cash or property
    other than such stock or securities.''
        (e) Treatment Under Straddle Rules.--Clause (i) of section
    1092(d)(3)(B) is amended by striking ``or'' at the end of
    subclause (I), by redesignating subclause (II) as subclause
    (III), and by inserting after subclause (I) the following new
    subclause:
                                        ``(II) a securities futures
                                    contract (as defined in section
                                    1234B) with respect to such
                                    stock or substantially
                                    identical stock or securities,
                                    or''.
        (f) Treatment Under Short Sales Rules.--Paragraph (2) of
    section 1233(e) is amended by striking ``and'' at the end of
    subparagraph (B), by striking the period at the end of
    subparagraph (C) and inserting ``; and'', and by adding at the
    end the following:
                        ``(D) a securities futures contract (as
                    defined in section 1234B) to acquire
                    substantially identical property shall be
                    treated as substantially identical property.''
        (g) Treatment Under Section 1256.--
                (1)(A) Subsection (b) of section 1256 is amended by
            striking ``and'' at the end of paragraph (3), by
            striking the period at the end of paragraph (4) and
            inserting ``, and'', and by adding at the end the
            following:
                ``(5) any dealer securities futures contract.
    The term `section 1256 contract' shall not include any
    securities futures contract or option on such a contract unless
    such contract or option is a dealer securities futures
    contract.''
                (B) Subsection (g) of section 1256 is amended by
            adding at the end the following new paragraph:
                ``(9) Dealer securities futures contract.--
                        ``(A) In general.--The term `dealer
                    securities futures contract' means, with
                    respect to any dealer, any securities futures
                    contract, and any option on such a contract,
                    which--
                                ``(i) is entered into by such
                            dealer (or, in the case of an option,
                            is purchased or granted by such dealer)
                            in the normal course of his activity of
                            dealing in such contracts or options,
                            as the case may be, and
                                ``(ii) is traded on a qualified
                            board or exchange.
                        ``(B) Dealer.--For purposes of subparagraph
                    (A), a person shall be treated as a dealer in
                    securities futures contracts or options on such
                    contracts if the Secretary determines that such
                    person performs, with respect to such contracts
                    or options, as the case may be, functions
                    similar to the functions performed by persons
                    described in paragraph (8)(A). Such
                    determination shall be made to the extent
                    appropriate to carry out the purposes of this
                    section.
                        ``(C) Securities futures contract.--The
                    term `securities futures contract' has the
                    meaning given to such term by section 1234B.''
                (2) Paragraph (4) of section 1256(f) is amended--
                        (A) by inserting ``, or dealer securities
                    futures contracts,'' after ``dealer equity
                    options'' in the text, and
                        (B) by inserting ``and dealer securities
                    futures contracts'' after ``dealer equity
                    options'' in the heading.
                (3) Paragraph (6) of section 1256(g) is amended to
            read as follows:
                ``(6) Equity option.--The term `equity option'
            means any option--
                        ``(A) to buy or sell stock, or
                        ``(B) the value of which is determined
                    directly or indirectly by reference to any
                    stock or any narrow-based security index (as
                    defined in section 3(a)(55) of the Securities
                    Exchange Act of 1934, as in effect on the date
                    of the enactment of this paragraph).
            The term `equity option' includes such an option on a
            group of stocks only if such group meets the
            requirements for a narrow-based security index (as so
            defined).''
                (4) The Secretary of the Treasury or his delegate
            shall make the determinations under section
            1256(g)(9)(B) of the Internal Revenue Code of 1986, as
            added by this Act, not later than July 1, 2001.
        (h) Conforming Amendments.--
                (1) Section 1223 is amended by redesignating
            paragraph (16) as paragraph (17) and by inserting after
            paragraph (15) the following new paragraph:
                ``(16) If the security to which a securities
            futures contract (as defined in section 1234B) relates
            (other than a contract to which section 1256 applies)
            is acquired in satisfaction of such contract, in
            determining the period for which the taxpayer has held
            such security, there shall be included the period for
            which the taxpayer held such contract if such contract
            was a capital asset in the hands of the taxpayer.''.
                (2) The table of sections for subpart IV of
            subchapter P of chapter 1 is amended by inserting after
            the item relating to section 1234A the following new
            item:

            ``Sec. 1234B. Securities futures contracts.''

        (i) Designation of Contract Markets.--Section 7701 is
    amended by redesignating subsection (m) as subsection (n) and
    by inserting after subsection (l) the following new subsection:
        ``(m) Designation of Contract Markets.--Any designation by
    the Commodity Futures Trading Commission of a contract market
    which could not have been made under the law in effect on the
    day before the date of the enactment of the Commodity Futures
    Modernization Act of 2000 shall apply for purposes of this
    title except to the extent provided in regulations prescribed
    by the Secretary.''
        (j) Effective Date.--The amendments made by this section
    shall take effect on the date of the enactment of this Act.

                    COMMUNITY RENEWAL TAX RELIEF ACT OF 2000

          Following is explanatory language on H.R. 5662, as
    introduced on December 14, 2000.
          The conferees on H.R. 4577 agree with the matter included
    in H.R. 5662 and enacted in this conference report by reference
    and the following description of it.

                     TITLE I.--COMMUNITY RENEWAL PROVISIONS

     A. Renewal Community Provisions (secs. 101-102 of the bill and secs.
                  51, 469, and new secs. 1400E-J of the Code)

                                  Present Law

          In recent years, provisions have been added to the
    Internal Revenue Code that target specific geographic areas for
    special Federal income tax treatment. For example, empowerment
    zones and enterprise communities generally provide tax
    incentives for businesses that locate within certain geographic
    areas designated by the Secretaries of Housing and Urban
    Development (`HUD'') and Agriculture.

                                   House Bill

          No provision. However, H.R. 5542 \1\ authorizes the
    designation of 40 ``renewal communities'' within which special
    tax incentives would be available. The following is a
    description of the designation process and the tax incentives
    that would be available within the renewal communities.
    ---------------------------------------------------------------------------
          \1\ H.R. 5542 was incorporated by reference into the conference
    agreement that accompanied H.R. 2614 (H. Rpt. 106-1004), which was
    passed by the House of Representatives on October 26, 2000.
    ---------------------------------------------------------------------------
    Designation process
          Designation of 40 renewal communities.--The Secretary of
    HUD,\2\ is authorized to designate up to 40 ``renewal
    communities'' from areas nominated by States and local
    governments. At least 12 of the designated communities must be
    in rural areas. Of the 12 rural renewal communities, one shall
    be an area within Mississippi, designated by the State of
    Mississippi, that includes at least one census tract within
    Madison County, Mississippi.
    ---------------------------------------------------------------------------
          \2\ In making the designations, the Secretary of HUD must consult
    with the Secretaries of Agriculture, Commerce, Labor, Treasury, the
    Director of the Office of Management and Budget; and the Administrator
    of the Small Business Administration (and the Secretary of the Interior
    in the case of an area within an Indian reservation).
    ---------------------------------------------------------------------------
          The Secretary of HUD is required to publish (within four
    months after enactment) regulations describing the nomination
    and selection process. Designations of renewal communities are
    to be made during the period beginning on the first day of the
    first month after the regulations are published and ending on
    December 31, 2001. The designation of an area as a renewal
    community generally will be effective on January 1, 2002, and
    will terminate after December 31, 2009.\3\
    ---------------------------------------------------------------------------
          \3\ The designation would terminate earlier than December 31,
    2009, if (1) an earlier termination date is designated by the State or
    local government in their designation, or (2) the Secretary of HUD
    revokes the designation as of an earlier date.
    ---------------------------------------------------------------------------
          Eligibility criteria.--To be designated as a renewal
    community, a nominated area must meet the following criteria:
    (1) each census tract must have a poverty rate of at least 20
    percent; \4\ (2) in the case of an urban area, at least 70
    percent of the households have incomes below 80 percent of the
    median income of households within the local government
    jurisdiction; (3) the unemployment rate is at least 1.5 times
    the national unemployment rate; and (4) the area is one of
    pervasive poverty, unemployment, and general distress. Those
    areas with the highest average ranking of eligibility factors
    (1), (2), and (3) above would be designated as renewal
    communities. One nominated area within the District of Columbia
    becomes a renewal community (without regard to its ranking of
    eligibility factors) provided that it satisfies the area and
    eligibility requirements and the required State and local
    commitments described below.\5\ The Secretary of HUD shall take
    into account in selecting areas for designation the extent to
    which such areas have a high incidence of crime, as well as
    whether the area has census tracts identified in the May 12,
    1998, report of the General Accounting Office regarding the
    identification of economically distressed areas. In lieu of the
    poverty, income, and unemployment criteria, outmigration may be
    taken into account in the designation of one rural renewal
    community.
    ---------------------------------------------------------------------------
          \4\ Determined using 1990 census data.
          \5\ The designation of a nominated area within the District of
    Columbia as a renewal community becomes effective on January 1, 2003
    (upon the expiration of the designation of the District of Columbia
    Enterprise Zone).
    ---------------------------------------------------------------------------
          There are no geographic size limitations placed on
    renewal communities. Instead, the boundary of a renewal
    community must be continuous. In addition, the renewal
    community must have a minimum population of 4,000 if the
    community is located within a metropolitan statistical area (at
    least 1,000 in all other cases), and a maximum population of
    not more than 200,000. The population limitations do not apply
    to any renewal community that is entirely within an Indian
    reservation.
          Required State and local commitments.--In order for an
    area to be designated as a renewal community, State and local
    governments are required to submit a written course of action
    in which the State and local governments promise to take at
    least four of the following governmental actions within the
    nominated area: (1) a reduction of tax rates or fees; (2) an
    increase in the level of efficiency of local services; (3)
    crime reduction strategies; (4) actions to remove or streamline
    governmental requirements; (5) involvement by private entities
    and community groups, such as to provide jobs and job training
    and financial assistance; and (6) the gift (or sale at below
    fair market value) of surplus realty by the State or local
    government to community organizations or private companies.
          In addition, the nominating State and local governments
    must promise to promote economic growth in the nominated area
    by repealing or not enforcing four of the following: (1)
    licensing requirements for occupations that do not ordinarily
    require a professional degree; (2) zoning restrictions on home-
    based businesses that do not create a public nuisance; (3)
    permit requirements for street vendors who do not create a
    public nuisance; (4) zoning or other restrictions that impede
    the formation of schools or child care centers; and (5)
    franchises or other restrictions on competition for businesses
    providing public services, including but not limited to
    taxicabs, jitneys, cable television, or trash hauling, unless
    such regulations are necessary for and well-tailored to the
    protection of health and safety.
          Empowerment zones and enterprise communities seeking
    designation as renewal communities.--With respect to the first
    20 designations of nominated areas as renewal communities,
    preference will be given to nominated areas that are enterprise
    communities and empowerment zones under present law that
    otherwise meet the requirements for designation as a renewal
    community. An empowerment zone or enterprise community can
    apply for designation as a renewal community. If a renewal
    community designation is granted, then an area's designation as
    an empowerment zone enterprise community ceases as of the date
    the area's designation as a renewal community takes effect.
    Tax incentives for renewal communities
          The following tax incentives generally are available
    during the period beginning January 1, 2002, and ending
    December 31, 2009.\6\
    ---------------------------------------------------------------------------
          \6\ If a renewal community designation is terminated prior to
    December 31, 2009, the tax incentives would cease to be available as of
    the termination date.
    ---------------------------------------------------------------------------
          Zero-percent capital gain rate.--A zero-percent capital
    gains rate applies with respect to gain from the sale of a
    qualified community asset acquired after December 31, 2001, and
    before January 1, 2010, and held for more than five years. A
    ``qualified community asset'' includes: (1) qualified community
    stock (meaning original-issue stock purchased for cash in a
    renewal community business); (2) a qualified community
    partnership interest (meaning a partnership interest acquired
    for cash in a renewal community business); (3) qualified
    community business property (meaning tangible property
    originally used in a renewal community business by the
    taxpayer) that is purchased or substantially improved after
    December 31, 2001.
          A ``renewal community business'' is similar to the
    present-law definition of an enterprise zone business.\7\
    Property will continue to be a qualified community asset if
    sold (or otherwise transferred) to a subsequent purchaser,
    provided that the property continues to represent an interest
    in (or tangible property used in) a renewal community business.
    The termination of an area's status as a renewal community will
    not affect whether property is a qualified community asset, but
    any gain attributable to the period before January 1, 2002, or
    after December 31, 2014, will not be eligible for the zero-
    percent rate.
    ---------------------------------------------------------------------------
          \7\ An ``enterprise zone business'' is defined in section 1397B.
    ---------------------------------------------------------------------------
          Renewal community employment credit.--A 15-percent wage
    credit is available to employers for the first $10,000 of
    qualified wages paid to each employee who (1) is a resident of
    the renewal community, and (2) performs substantially all
    employment services within the renewal community in a trade or
    business for the employer.
          The wage credit rate applies to qualifying wages paid
    after December 31, 2001, and before January 1, 2010. Wages that
    qualify for the credit are wages that are considered
    ``qualified zone wages'' for purposes of the empowerment zone
    wage credit (including coordination with the Work Opportunity
    Tax Credit). In general, any taxable business carrying out
    activities in the renewal community may claim the wage credit.
          Commercial revitalization deduction.--Each State is
    permitted to allocate up to $12 million of ``commercial
    revitalization expenditures'' to each renewal community located
    within the State for each calendar year after 2001 and before
    2010. The appropriate State agency will make the allocations
    pursuant to a qualified allocation plan.
          A ``commercial revitalization expenditure'' means the
    cost of a new building or the cost of substantially
    rehabilitating an existing building. The building must be used
    for commercial purposes and be located in a renewal community.
    In the case of the rehabilitation of an existing building, the
    cost of acquiring the building will be treated as qualifying
    expenditures only to the extent that such costs do not exceed
    30 percent of the other rehabilitation expenditures. The
    qualifying expenditures for any building cannot exceed $10
    million.
          A taxpayer can elect either to (a) deduct one-half of the
    commercial revitalization expenditures for the taxable year the
    building is placed in service or (b) amortize all the
    expenditures ratably over the 120-month period beginning with
    the month the building is placed in service. No depreciation is
    allowed for amounts deducted under this provision. The adjusted
    basis is reduced by the amount of the commercial revitalization
    deduction, and the deduction is treated as a depreciation
    deduction in applying the depreciation recapture rules (e.g.,
    sec. 1250). The commercial revitalization deduction is treated
    in the same manner as the low-income housing credit in applying
    the passive loss rules (sec. 469). Thus, up to $25,000 of
    deductions (together with the other deductions and credits not
    subject to the passive loss limitation by reason of section
    469(i)) are allowed to an individual taxpayer regardless of the
    taxpayer's adjusted gross income. The commercial revitalization
    deduction is allowed in computing a taxpayer's alternative
    minimum taxable income.
          Additional section 179 expensing.--A renewal community
    business is allowed an additional $35,000 of section 179
    expensing for qualified renewal property placed in service
    after December 31, 2001, and before January 1, 2010. The
    section 179 expensing allowed to a taxpayer is phased out by
    the amount by which 50 percent of the cost of qualified renewal
    property placed in service during the year by the taxpayer
    exceeds $200,000. The term ``qualified renewal property'' is
    similar to the definition of ``qualified zone property'' used
    in connection with empowerment zones.
          Extension of work opportunity tax credit (``WOTC'').--The
    bill expands the high-risk youth and qualified summer youth
    categories in the WOTC to include qualified individuals who
    live in a renewal community.
    GAO report
          The General Accounting Office will audit and report to
    Congress on January 31, 2004, and again in 2007 and 2010, on
    the renewal community program and its effect on poverty,
    unemployment, and economic growth within the designated renewal
    communities.
    Effective date
          Renewal communities must be designated during the period
    beginning on the first day of the first month after the
    publication of regulations by HUD and ending on December 31,
    2001, The tax benefits available in renewal communities are
    effective for the period beginning January 1, 2002, and ending
    December 31, 2009.

                                Senate Amendment

          No provision. However, S. 3152 \8\ authorizes the
    Secretaries of HUD and Agriculture to designate up to 30
    renewal zones from areas nominated by States and local
    governments. At least six of the designated renewal zones must
    be in rural areas. The Secretary of HUD is required to publish
    (within four months after enactment) regulations describing the
    nomination and selection process. Designations of renewal zones
    must be made before January 1, 2002, and the designations are
    effective for the period beginning on January 1, 2002, through
    December 31, 2009.
    ---------------------------------------------------------------------------
          \8\ S. 3152 was introduced by Senator Roth and others on October
    3, 2000.
    ---------------------------------------------------------------------------
          The eligibility criteria (as well as the population and
    geographic limitations) are similar to those for renewal
    communities in the House bill, except that S. 3152 provides
    that any State without any empowerment zone would be given
    priority in the designation process. Also, the designations of
    renewal zones must result in (after taking into account
    existing empowerment zones) each State having at least one zone
    designation (empowerment or renewal zone). In addition, S. 3152
    provides that, in lieu of the poverty, income, and unemployment
    criteria, outmigration may be taken into account in the
    designation of one rural renewal zone. Under a separate
    provision in S. 3152, the designation of the District of
    Columbia Enterprise Zone is entended through December 31, 2006.
          In order for an area to be designated as a renewal zone,
    State and local governments are required to submit a written
    course of action in which the State and local governments
    promise to take at least four of the governmental actions
    described in the House bill with respect to renewal
    communities. However, S. 3152 does not contain any of the
    economic growth provision requirements described in the House
    bill.
          Tax incentives for renewal zones.--Under S. 3152,
    businesses in renewal zones would be eligible for the following
    tax incentives during the period beginning January 1, 2002 and
    ending December 31, 2009: (1) a zero-percent capital gains rate
    for qualifying assets limited to an aggregate amount not to
    exceed $25 million of gain per taxpayer; \9\ (2) a 15-percent
    wage credit for the first $15,000 of qualifying wages; (3)
    $35,000 in additional 179 expensing for qualifying property;
    (4) and the enhanced tax-exempt bond rules that currently apply
    to businesses in the Round II empowerment zones.
    ---------------------------------------------------------------------------
          \9\ Any gain attributable to the period before January 1, 2002,
    or after December 31, 2014, would not be eligible for the zero-percent
    capital gains rate.
    ---------------------------------------------------------------------------
          GAO report.--The General Accounting Office will audit and
    report to Congress every three years (beginning on January 31,
    2004) on the renewal zone program and its effect on poverty,
    unemployment, and economic growth within the designated renewal
    zones.
          Effective date.--The 30 renewal zones must be designated
    by January 1, 2002, and the tax benefits are available for the
    period beginning January 1, 2002, and ending December 31, 2009.

                              Conference Agreement

          The conference agreement follows H.R. 5542 with the
    following modifications. The conference agreement does not
    include the rural renewal community designation with respect to
    an area within the State of Mississippi. The conference
    agreement does not include the special rule that provides that
    one nominated area within the District of Columbia becomes a
    renewal community (without regard to its ranking of eligibility
    factors).

                       B. Empowerment Zone Tax Incentives

    1. Extension and expansion of empowerment zones (secs. 111-115 of the
            bill and secs. 1391, 1394, 1396, and 1397A of the Code)

                                  PRESENT LAW

    Round I empowerment zones
          The Omnibus Budget Reconciliation Act of 1993 (``OBRA
    1993'') authorized the designation of nine empowerment zones
    (``Round I empowerment zones'') to provide tax incentives for
    businesses to locate within targeted areas designated by the
    Secretaries of HUD and Agriculture. The Taxpayer Relief Act of
    1997 (``1997 Act'') authorized the designation of two
    additional Round I urban empowerment zones.
          Businesses in the 11 Round I empowerment zones qualify
    for the following tax incentives: (1) a 20-percent wage credit
    for the first $15,000 of wages paid to a zone resident who
    works in the empowerment zone,\10\ (2) an additional $20,000 of
    section 179 expensing for qualifying zone property, and (3)
    tax-exempt financing for certain qualifying zone facilities.
    The tax incentives with respect to the empowerment zones
    designated by OBRA 1993 generally are available during the 10-
    year period of 1995 through 2004. The tax incentives with
    respect to the two additional Round I empowerment zones
    generally are available during the 10-year period of 2000
    through 2009.\11\
    ---------------------------------------------------------------------------
          \10\ For wages paid in calendar years during the period 1994
    through 2001, the credit rate is 20 percent. The credit rate is reduced
    to 15 percent for calendar year 2002, 10 percent for calendar year
    2003, and 5 percent for calendar year 2004. No wage credit is available
    after 2004 in the original nine empowerment zones.
          \11\ Except for the wage credit, which is reduced to 15 percent
    for calendar year 2005, and then reduced by five percentage points in
    each year in 2006 and 2007, with no wage credit available after 2007.
    ---------------------------------------------------------------------------
    Round II empowerment zones
          The 1997 Act also authorized the designation of 20
    additional empowerment zones (``Round II empowerment zones''),
    of which 15 are located in urban areas and five are located in
    rural areas. Businesses in the Round II empowerment zones are
    not eligible for the wage credit, but are eligible to receive
    up to $20,000 of additional section 179 expensing. Businesses
    in the Round II empowerment zones also are eligible for more
    generous tax-exempt financing benefits than those available in
    the Round I empowerment zones. Specifically, the tax-exempt
    financing benefits for the Round II empowerment zones are not
    subject to the State private activity bond volume caps (but are
    subject to separate per-zone volume limitations), and the per-
    business size limitations that apply to the Round I empowerment
    zones and enterprise communities (i.e., $3 million for each
    qualified enterprise zone business with a maximum of $20
    million for each principal user for all zones and communities)
    do not apply to qualifying bonds issued for Round II
    empowerment zones. The tax incentives with respect to the Round
    II empowerment zones generally are available during the 10-year
    period of 1999 through 2008.

                                   HOUSE BILL

          No provision. However, H.R. 5542 conforms and enhances
    the tax incentives for the Round I and Round II empowerment
    zones and extends their designations through December 31, 2009.
    The bill also authorizes the designation of nine new
    empowerment zones (``Round III empowerment zones'').
    Extension of tax incentives for Round I and Round II empowerment zones
          The designation of empowerment zone status for Round I
    and II empowerment zones (other than the District of Columbia
    Enterprise Zone) is extended through December 31, 2009. In
    addition, the 20-percent wage credit is made available in all
    Round I and II empowerment zones for qualifying wages paid or
    incurred after December 31, 2001. The credit rate remains at 20
    percent (rather than being phased down) through December 31,
    2009, in Round I and Round II empowerment zones.
          In addition, $35,000 (rather than $20,000) of additional
    section 179 expensing is available for qualified zone property
    placed in service in taxable years beginning after December 31,
    2001, by a qualified business in any of the empowerment
    zones.\12\ Businesses in the D.C. Enterprise Zone are entitled
    to the additional section 179 expensing until the termination
    of the D.C. Enterprise zone designation.
    ---------------------------------------------------------------------------
          \12\ The additional $35,000 of section 179 expensing is available
    throughout all areas that are part of a designated empowerment zone,
    including the non-contiguous ``developable sites'' that were allowed to
    be part of the designated Round II empowerment zones under the 1997
    Act.
    ---------------------------------------------------------------------------
          Businesses located in Round I empowerment zones (other
    than the D.C. Enterprise Zone) \13\ also are eligible for the
    more generous tax-exempt bond rules that apply under present
    law to businesses in the Round II empowerment zones (sec.
    1394(f)). The bill applies to tax-exempt bonds issued after
    December 31, 2001. Bonds that have been issued by businesses in
    Round I zones before January 1, 2002, are not taken into
    account in applying the limitations on the amount of new
    empowerment zone facility bonds that can be issued under the
    bill.
    ---------------------------------------------------------------------------
          \13\ The present-law rules of sections 1394 and 1400A continue to
    apply with respect to the D.C. Enterprise Zone.
    ---------------------------------------------------------------------------
    Nine new empowerment zones
          The Secretaries of HUD and Agriculture are authorized to
    designate nine additional empowerment zones (``Round III
    empowerment zones''). Seven of the Round III empowerment zones
    will be located in urban areas, and two will be located in
    rural areas.
          The eligibility and selection criteria for the Round III
    empowerment zones are the same as the criteria that applied to
    the Round II empowerment zones. The Round III empowerment zones
    must be designated by January 1, 2002, and the tax incentives
    with respect to the Round III empowerment zones generally are
    available during the period beginning on January 1, 2002, and
    ending on December 31, 2009.
          Busineses in the Round III empowerment zones are eligible
    for the same tax incentives that, under the bill, are available
    to Round I and Round II empowerment zones (i.e., a 20-percent
    wage credit, an additional $35,000 of section 179 expensing,
    and the enhanced tax-exempt financing benefits presently
    available to Round II empowerment zones).
    GAO report
          The bill provides that the GAO will audit and report to
    Congress on January 31, 2004, and again in 2007 and 2010, on
    the empowerment zone and enterprise community program and its
    effect on poverty, unemployment, and economic growth within the
    designated areas.
    Effective date
          The extension of the existing empowerment zone
    designations is effective after the date of enactment. The
    extension of the tax benefits to existing empowerment zones
    (i.e., the expanded wage credit, the additional section 179
    expensing, and the more generous tax-exempt bond rules)
    generally is effective after December 31, 2001. The new Round
    III empowerment zones must be designated by January 1, 2002,
    and the tax incentives with respect to the Round III
    empowerment zones generally are available during the period
    beginning on January 1, 2002, and ending on December 31, 2009.

                                Senate Amendment

          No provision. However, S. 3152 contains a provision that
    conforms and enhances incentives of existing empowerment zones.
    Specifically, the provision extends the designation of
    empowerment zone status for Round I and II empowerment zones
    through December 31, 2009. In addition, a 15-percent wage
    credit is made available in all Round I and II empowerment
    zones, effective in 2002 (except in the case of the two
    additional Round I empowerment zones added by the 1997 Act, for
    which the 15-percent wage credit takes effect in 2005 as
    scheduled under present law). For all the empowerment zones,
    the 15-percent wage credit expires on December 31, 2009.
          As in the House bill, $35,000 (rather than $20,000) in
    additional section 179 expensing is made available for
    qualified zone property placed in service in taxable years
    beginning after December 31, 2001, by a qualified business in
    any of the empowerment zones. Similarly, S. 3152 extends to
    businesses located in Round I empowerment zones the more
    generous tax-exempt bond rules that apply under present law to
    businesses in the Round II empowerment zones (sec. 1394(f)) for
    bonds issued after December 31, 2001.
          Businesses located in any empowerment zone also qualify
    for a zero-percent capital gains rate for gain from the sale of
    a qualifying zone assets acquired after date of enactment and
    before January 1, 2010, and held for more than five years.
    Assets that qualify for this incentive are similar to the types
    of assets that qualify for the present-law zero percent capital
    gains rate for qualifying D.C. Zone assets. The zero-percent
    capital gains rate is limited to an aggregate amount not to
    exceed $25 million of gain per taxpayer. Gain attributable to
    the period before the date of enactment or after December 31,
    2014, is not eligible for the zero-percent rate.
          Effective date.--The extension of the existing
    empowerment zone designations is effective after the date of
    enactment. The additional section 179 expensing and the more
    generous tax-exempt bond rules for the existing empowerment
    zones is effective after December 31, 2001. The zero-percent
    capital gains rate applies to qualifying property purchased
    after the date of enactment. The 15-percent wage credit
    generally is effective for qualifying wages paid after December
    31, 2001 (December 31, 2004 for the two additional Round I
    empowerment zones).

                              Conference Agreement

          The conference agreement follows H.R. 5542. The
    conference agreement also provides that the Secretaries of HUD
    and Agriculture are authorized to designate a replacement
    empowerment zone for each empowerment zone that becomes a
    renewal community. The replacement empowerment zone will have
    the same urban or rural character as the empowerment zone that
    it is replacing.
    2. Rollover of gain from the sale of qualified empowerment zone
            investments (sec. 116 of the bill and new sec. 1397B of the
            Code)

                                  Present Law

          In general, gain or loss is recognized on any sale,
    exchange, or other disposition of property. A taxpayer (other
    than a corporation) may elect to roll over without payment of
    tax any capital gain realized upon the sale of qualified small
    business stock held for more than six months where the taxpayer
    uses the proceeds to purchase other qualified small business
    stock within 60 days of the sale of the original stock.

                                   House Bill

          No provision. However, H.R. 5542 provides that a taxpayer
    can elect to roll over capital gain from the sale or exchange
    of any qualified empowerment zone asset purchased after the
    date of enactment and held for more than one year (``original
    zone asset'') where the taxpayer uses the proceeds to purchase
    other qualifying empowerment zone assets in the same zone
    (``replacement zone asset'') within 60 days of the sale of the
    original zone asset. The holding period of the replacement zone
    asset includes the holding period of the original zone asset,
    except that the replacement asset must actually be held for
    more than one year to qualify for another tax-free rollover.
    The basis of the replacement zone asset is reduced by the gain
    not recognized on the rollover. However, if the replacement
    zone asset is qualified small business stock (as defined in
    sec. 1202), the exclusion under section 1202 would not apply to
    gain accrued on the original zone asset.\14\ A ``qualified
    empowerment zone asset'' means an asset that would be a
    qualified community asset if the empowerment zone were a
    renewal community (and the asset is acquired after the date of
    enactment of the bill). Assets in the D.C. Enterprise Zone are
    not eligible for the tax-free rollover treatment.\15\
    ---------------------------------------------------------------------------
          \14\ See section 1045 for rollover of qualified small business
    stock to other small business stock.
          \15\ However, a qualifying D.C. Zone asset held for more than
    five years is eligible for a 100-percent capital gains exclusion (sec.
    1400B).
    ---------------------------------------------------------------------------
          Effective date.--The provision is effective for
    qualifying assets purchased after the date of enactment.

                                senate amendment

          No provision.

                              conference agreement

          The conference agreement follows H.R. 5542.
    3. Increased exclusion of gain from the sale of qualifying empowerment
            zone stock (sec. 117 of the bill and sec. 1202 of the Code)

                                  Present Law

          Under present law, an individual, subject to limitations,
    may exclude 50 percent of the gain \16\ from the sale of
    qualifying small business stock held more than five years (sec.
    1202).
    ---------------------------------------------------------------------------
          \16\ The portion of the capital gain included in income is
    subject to a maximum regular tax rate of 28 percent, and 42 percent of
    the excluded gain is a minimum tax preference.
    ---------------------------------------------------------------------------

                                   House Bill

          No provision. However, H.R. 5542 increases the exclusion
    for small business stock to 60 percent for stock purchased
    after the date of enactment in a corporation that is a
    qualified business entity and that is held for more than five
    years. A ``qualified business entity'' means a corporation that
    satisfies the requirements of a qualifying business under the
    empowerment zone rules during substantially all the taxpayer's
    holding period.
          Effective date.--The provision is effective for qualified
    stock purchased after the date of enactment.

                                Senate Amendment

          No provision.

                              Conference Agreement

          The conference agreement follows H.R. 5542.

    C. New Markets Tax Credit (sec. 121 of the bill and new sec. 45D of the
                                     Code)

                                  present law

          Tax incentives are available to taxpayers making
    investments and loans in low-income communities. For example,
    tax incentives are available to taxpayers that invest in
    specialized small business investment companies licensed by the
    SBA to make loans to, or equity investments in, small
    businesses owned by persons who are socially or economically
    disadvantaged.

                                   house bill

          No provision. However, H.R. 5542 includes a provision
    that creates a new tax credit for qualified equity investments
    made to acquire stock in a selected community development
    entity (``CDE''). The maximum annual amount of qualifying
    equity investments is capped as follows:

    ------------------------------------------------------------------------
                                                Maximum qualifying equity
                 Calendar year                         investment
    ------------------------------------------------------------------------
    2001..................................  $1.0 billion
    2002-2003.............................  $1.5 billion per year
    2004-2005.............................  $2.0 billion per year
    2006-2007.............................  $3.5 billion per year
    ------------------------------------------------------------------------

          The amount of the new tax credit to the investor (either
    the original purchaser or a subsequent holder) is (1) a five-
    percent credit for the year in which the equity interest is
    purchased from the CDE and the first two anniversary dates
    after the interest is purchased from the CDE, and (2) a six
    percent credit on each anniversary date thereafter for the
    following four years.\17\ The taxpayer's basis in the
    investment is reduced by the amount of the credit (other than
    for purposes of calculating the capital gain exclusion under
    sections 1202, 1400B, and 1400F). The credit is subject to the
    general business credit rules.
    ---------------------------------------------------------------------------
          \17\ Thus, a credit would be available on the date on which the
    investment is made and for each of the six anniversary dates
    thereafter.
    ---------------------------------------------------------------------------
          A CDE is any domestic corporation or partnership (1)
    whose primary mission is serving or providing investment
    capital for low-income communities or low-income persons, (2)
    that maintains accountability to residents of low-income
    communities by their representation on any governing board or
    on any advisory board of the CDE, and (3) is certified by the
    Treasury Department as an eligible CDE.\18\ No later than 120
    days after enactment, the Treasury Department shall issue
    regulations that specify objective criteria to be used by the
    Treasury to allocate the credits among eligible CDEs. In
    allocating the credits, the Treasury Department will give
    priority to entities with records of having successfully
    provided capital or technical assistance to disadvantaged
    businesses or communities,\19\ as well as to entities that
    intend to invest substantially all of the proceeds from their
    investors in businesses in which persons unrelated to the CDE
    hold the majority of the equity interest.
    ---------------------------------------------------------------------------
          \18\ A specialized small business investment company and a
    community development financial institution are treated as satisfying
    the requirements for a CDE.
          \19\ A record of having successfully provided capital or
    technical assistance to disadvantaged businesses or communities could
    be demonstrated by the past actions of the CDE itself or an affiliate
    (e.g., in the case where a new CDE is established by a nonprofit
    organization with a history of providing assistance to disadvantaged
    communities).
    ---------------------------------------------------------------------------
          If a CDE fails to sell equity interests to investors up
    to the amount authorized within five years of the
    authorization, then the remaining authorization is canceled.
    The Treasury Department can authorize another CDE to issue
    equity interests for the unused portion. No authorization can
    be made after 2014.
          A ``qualified equity investment'' is defined as stock or
    a similar equity interest acquired directly from a CDE in
    exchange for cash. Substantially all of the investment proceeds
    must be used by the CDE to make ``qualified low-income
    community investments.'' Qualified low-income community
    investments include: (1) capital or equity investments in, or
    loans to, qualified active businesses located in low-income
    communities,\20\ (2) certain financial counseling and other
    services specified in regulations to businesses and residents
    in low-income communities, (3) the purchase from another CDE of
    any loan made by such entity that is a qualified low income
    community investment, or (4) an equity investment in, or loans
    to, another CDE.\21\ Treasury Department regulations will
    provide guidance with respect to the ``substantially all''
    standard.
    ---------------------------------------------------------------------------
          \20\ Thus, a qualified low-income community investment may
    include an investment in a qualifying business in which the CDE (or a
    related party) holds a significant interest. However, as previously
    mentioned, in allocating the credits among eligible CDEs, the Treasury
    Department will give priority to CDEs that intend to invest
    substantially all of the proceeds from their investors in businesses in
    which persons unrelated to the CDE hold the majority of the equity
    interest. Persons are related to each other if they are described in
    sections 267(b) or 707(b)(1).
          \21\ If at least 85 percent of the aggregate gross assets of the
    CDE are invested (directly or indirectly) in equity interests in, or
    loans to, qualified active businesses located in low-income
    communities, then there would be no need to trace the use of the
    proceeds from the particular stock (or other equity ownership) issuance
    with respect to which the credit is claimed.
    ---------------------------------------------------------------------------
          The stock or equity interest cannot be redeemed (or
    otherwise cashed out) by the CDE for at least seven years. If
    an entity fails to be a CDE during the seven-year period
    following the taxpayer's investment, or if the equity interest
    is redeemed by the issuing CDE during that seven-year period,
    then any credits claimed with respect to the equity interest
    are recaptured (with interest) and no further credits are
    allowed.
          A ``low-income community'' is defined as census tracts
    with either (1) poverty rates of at least 20 percent (based on
    the most recent census data), or (2) median family income which
    does not exceed 80 percent of the greater of metropolitan area
    income or statewide median family income (for a non-
    metropolitan census tract, 80 percent of non-metropolitan
    statewide median family income). In addition, the Secretary may
    designate any area within any census tract as a ``low income
    community'' provided that (1) the boundary of the area is
    continuous,\22\ (2) the area (if it were a census tract) would
    satisfy the poverty rate or median income requirements within
    the targeted area, and (3) an inadequate access to investment
    capital exists in the area.
    ---------------------------------------------------------------------------
          \22\ It is intended that the continuous boundary that delineates
    the portion of the census tract as a ``low-income community'' should be
    a pre-existing boundary (such as an established neighborhood,
    political, or geographic boundary).
    ---------------------------------------------------------------------------
          A ``qualified active business'' is defined as a business
    which satisfies the following requirements: (1) at least 50
    percent of the total gross income of the business is derived
    from the active conduct of trade or business activities in low-
    income communities; (2) a substantial portion of the use of the
    tangible property of such business is used in low-income
    communities; (3) a substantial portion of the services
    performed for such business by its employees is performed in
    low-income communities; and (4) less than 5 percent of the
    average aggregate of unadjusted bases of the property of such
    business is attributable to certain financial property or to
    collectibles (other than collectibles held for sale to
    customers). There is no requirement that employees of the
    business be residents of the low-income community.
          Rental of improved commercial real estate located in a
    low-income community is a qualified active business, regardless
    of the characteristics of the commercial tenants of the
    property. The purchase and holding of unimproved real estate is
    not a qualified active business. In addition, a qualified
    active business does not include (a) any business consisting
    predominantly of the development or holding of intangibles for
    sale or license; or (b) operation of any facility described in
    sec. 144(c)(6)(B). A qualified active business can include an
    organization that is organized on a non-profit basis.
          The GAO will audit and report to Congress by January 31,
    2004, and again in 2007 and 2010, on the new markets tax credit
    program, including on all qualified community development
    entities that receive an allocation under the new markets tax
    credit program.
          Effective date.--The provision is effective for qualified
    investments made after December 31, 2000.

                                senate amendment

          No provision. However, S. 3152 includes a provision that
    creates a new markets tax credit that is similar to the
    provision in H.R. 5542. However, under S. 3152, the maximum
    annual amount of qualifying equity investments is capped as
    follows:

    ------------------------------------------------------------------------
                                                Maximum qualifying equity
                 Calendar year                         investment
    ------------------------------------------------------------------------
    2002..................................  $1.0 billion
    2003-2006.............................  $1.5 billion per year
    ------------------------------------------------------------------------

          Under S. 3152, if a CDE fails to sell equity interests to
    investors up to the amount authorized within five years of the
    authorization, then the remaining authorization is canceled.
    The Treasury Department can authorize another CDE to issue
    equity interests for the unused portion. No authorization can
    be made after 2013.
          Effective date.--The provision is effective for qualified
    investments made after December 31, 2001.

                              conference Agreement

          The conference agreement follows H.R. 5542. The
    conference agreement also clarifies that a low-income community
    can include a possession of the United States \23\ (and thus
    investments in a U.S. possession may qualify for the new
    markets tax credit).
    ---------------------------------------------------------------------------
          \23\ For this purpose, a U.S. possession means Puerto Rico, the
    Virgin Islands, Guam, the Northern Mariana Islands, and American Samoa.
    ---------------------------------------------------------------------------

       D. Increase the Low-Income Housing Tax Credit Cap and Make Other
       Modifications (secs. 131-137 of the bill and sec. 42 of the Code)

                                  Present Law

    In general
          The low-income housing tax credit may be claimed over a
    10-year period for the cost of rental housing occupied by
    tenants having incomes below specified levels. The credit
    percentage for newly constructed or substantially rehabilitated
    housing that is not Federally subsidized is adjusted monthly by
    the Internal Revenue Service so that the 10 annual installments
    have a present value of 70 percent of the total qualified
    expenditures. The credit percentage for new substantially
    rehabilitated housing that is Federally subsidized and for
    existing housing that is substantially rehabilitated is
    calculated to have a present value of 30 percent qualified
    expenditures.
    Credit cap
          The aggregate credit authority provided annually to each
    State is $1.25 per resident, except in the case of projects
    that also receive financing with proceeds of tax-exempt bonds
    issued subject to the private activity bond volume limit and
    certain carry-over amounts.
    Expenditure test
          Generally, the building must be placed in service in the
    year in which it receives an allocation to qualify for the
    credit. An exception is provided in the case where the taxpayer
    has expended an amount equal to 10-percent or more of the
    taxpayer's reasonably expected basis in the building by the end
    of the calendar year in which the allocation is received and
    certain other requirements are met.
    Basis of building eligible for the credit
          Buildings receiving assistance under the HOME investment
    partnerships act (``HOME'') are not eligible for the enhanced
    credit for buildings located in high cost areas (i.e.,
    qualified census tracts and difficult development areas). Under
    the enhanced credit, the 70-percent and 30-percent credit are
    increased to a 91-percent and 39-percent credit, respectfully.
          Eligible basis is generally limited to the portion of the
    building used by qualified low-income tenants for residential
    living and some common areas.
    State allocation plans
          Each State must develop a plan for allocating credits and
    such plan must include certain allocation criteria including:
    (1) project location; (2) housing needs characteristics; (3)
    project characteristics; (4) sponsor characteristics; (5)
    participation of local tax-exempts; (6) tenant populations with
    special needs; and (7) public housing waiting lists. The State
    allocation plan must also give preference to housing projects:
    (1) that serve the lowest income tenants; and (2) that are
    obligated to serve qualified tenants for the longest periods.
    Credit administration
          There are no explicit requirements that housing credit
    agencies perform a comprehensive market study of the housing
    needs of the low-income individuals in the area to be served by
    the project, nor that such agency conduct site visits to
    monitor for compliance with habitability standards.
    Stacking rule
          Authority to allocate credits remains at the State (as
    opposed to local) government level unless State law provides
    otherwise.\24\ Generally, credits may be allocated only from
    volume authority arising during the calendar year in which the
    building is placed in service, except in the case of: (1)
    credits claimed on additions to qualified basis; (2) credits
    allocated in a later year pursuant to an earlier binding
    commitment made no later than the year in which the building is
    placed in service; and (3) carryover allocations.
    ---------------------------------------------------------------------------
          \24\ For example, constitutional home rule cities in Illinois are
    guaranteed their proportionate share of the $1.25 amount, based on
    their population relative to that of the State as a whole.
    ---------------------------------------------------------------------------
          Each State annually receives low-income housing credit
    authority equal to $1.25 per State resident for allocation to
    qualified low-income projects.\25\ In addition to this $1.25
    per resident amount, each State's ``housing credit ceiling''
    includes the following amounts: (1) the unused State housing
    credit ceiling (if any) of such State for the preceding
    calendar year; \26\ (2) the amount of the State housing credit
    ceiling (if any) returned in the calendar year; \27\ and (3)
    the amount of the national pool (if any) allocated to such
    State by the Treasury Department.
    ---------------------------------------------------------------------------
          \25\ A State's population, for these purposes, is the most recent
    estimate of the State's population released by the Bureau of the Census
    before the beginning of the year to which the limitation applies. Also,
    for these purposes, the District of Columbia and the U.S. possessions
    (i.e., Puerto Rico, the Virgin Islands, Guam, the Northern Marianas and
    American Samoa) are treated as States.
          \26\ The unused State housing credit ceiling is the amount (if
    positive) of the previous year's annual credit limitation plus credit
    returns less the credit actually allocated in that year.
          \27\ Credit returns are the sum of any amounts allocated to
    projects within a State which fail to become a qualified low-income
    housing project within the allowable time period plus any amounts
    allocated to a project within a State under an allocation which is
    canceled by mutual consent of the housing credit agency and the
    allocation recipient.
    ---------------------------------------------------------------------------
          The national pool consists of States' unused housing
    credit carryovers. For each State, the unused housing credit
    carryover for a calendar year consists of the excess (if any)
    of the unused State housing credit ceiling for such year over
    the excess (if any) of the aggregate housing credit dollar
    amount allocated for such year over the sum of $1.25 per
    resident and the credit returns for such year. The amounts in
    the national pool are allocated only to a State which allocated
    its entire housing credit ceiling for the preceding calendar
    year, and requested a share in the national pool not later than
    May 1 of the calendar year. The national pool allocation to
    qualified States is made on a pro rata basis equivalent to the
    fraction that a State's population enjoys relative to the total
    population of all qualified States for that year.
          The present-law stacking rule provides that a State is
    treated as using its annual allocation of credit authority
    ($1.25 per State resident) and any returns during the calendar
    year followed by any unused credits carried forward from the
    preceding year's credit ceiling and finally any applicable
    allocations from the National pool.

                                   house bill

          No provision. However, H.R. 5542 makes the following
    changes in the low-income housing credit.
    Credit cap
          The bill increases the per-capita low-income housing
    credit cap from $1.25 per capita to $1.50 per capita in
    calendar year 2001 and to $1.75 per capita in calendar year
    2002. Beginning in calendar year 2003, the per-capita portion
    of the credit cap will be adjusted annually for inflation. For
    small States, a minimum annual cap of $2 million is provided
    for calendar years 2001 and 2002. Beginning in calendar year
    2003, the small State minimum is adjusted for inflation.
    Expenditure test
          The bill allows a building which receives an allocation
    in the second half of a calendar to qualify under the 10-
    percent test if the taxpayer expends an amount equal to 10-
    percent or more of the taxpayer's reasonably expected basis in
    the building within six months of receiving the allocation
    regardless of whether the 10-percent test is met by the end of
    the calendar year.
    Basis of building eligible for the credit
          The bill makes three changes to the basis rules of the
    credit. First, the definition of qualified census tracts for
    purposes of the enhanced credit is expanded to include any
    census tracts with a poverty rate of 25 percent or more.
    Second, the bill extends the credit to a portion of the
    building used as a community service facility not in excess of
    10 percent of the total eligible basis in the building. A
    community service facility is defined as any facility designed
    to serve primarily individuals whose income is 60 percent or
    less of area median income. Third, the bill provides that
    assistance received under the Native American Housing
    Assistance and Self-Determination Act of 1996 is not taken into
    account in determining whether a building is Federally
    subsidized for purposes of the credit. This allows such
    buildings to qualify for something other than the 30-percent
    credit generally applicable to Federally subsidized buildings.
    State allocation plans
          The bill strikes the plan criteria relating to
    participation of local tax-exempts, replacing it with two other
    criteria: tenant populations of individuals with children and
    projects intended for eventual tenant ownership. It also
    provides that the present-law criteria relating to sponsor
    characteristics include whether the project involves the use of
    existing housing as part of a community revitalization plan.
    The bill adds a third category of housing projects to the
    preferential list, for projects located in qualified census
    tracts which contribute to a concerted community revitalization
    plan.
    Credit administration
          The bill requires a comprehensive market study of the
    housing needs of the low-income individuals in the area to be
    served by the project and a written explanation available to
    the general public for any allocation not made in accordance
    with the established priorities and selection criteria of the
    housing credit agency. They also require site inspections by
    the housing credit agency to monitor compliance with
    habitability standards applicable to the project.
    Stacking rule
          The bill modifies the stacking rule so that each State is
    treated as using its allocation of the unused State housing
    credit ceiling (if any) from the preceding calendar before the
    current year's allocation of credit (including any credits
    returned to the State) and then finally any National pool
    allocations.
    Effective date
          The provision is generally effective for calendar years
    beginning after December 31, 2000, and buildings placed-in-
    service after such date in the case of projects that also
    receive financing with proceeds of tax-exempt bonds subject to
    the private activity bond volume limit which are issued after
    such date.

                                Senate Amendment

    Credit cap
          No provision. However, S. 3152 increases the annual State
    credit caps from $1.25 to $1.75 per resident beginning in 2001.
    Also, beginning in 2001 the per capita cap for each State is
    modified so that small population States are given a minimum of
    $2 million of annual credit cap. The $1.75 per capita cap and
    the $2 million amount are indexed for inflation beginning in
    calendar 2002.
    Expenditure test
          No provision.
    Basis of building eligible for the credit
          The provision in S. 3152 relating to the treatment of
    buildings receiving assistance under the Native American
    Housing Assistance and Self-Determination Act of 1996 is the
    same as one of the provisions in H.R. 5542.
    State allocation plans
          No provision.
    Credit administration
          No provision.
    Stacking rule
          Same as H.R. 5542.
    Effective date
          The provisions are effective for calendar years beginning
    after December 31, 2000 and buildings placed-in-service after
    such date in the case of projects that also receive financing
    with proceeds of tax-exempt bonds which are issued after such
    date subject to the private activity bond volume limit.

                              Conference Agreement

          The conference agreement follows H.R. 5542.

     E. Accelerate Scheduled Increase in State Volume Limits on Tax-Exempt
     Private Activity Bonds (sec. 151 of the bill and sec. 146 of the Code)

                                  Present Law

          Interest on bonds issued by States and local governments
    is excluded from income if the proceeds of the bonds are used
    to finance activities conducted and paid for by the
    governmental units (sec. 103). Interest on bonds issued by
    these governmental units to finance activities carried out and
    paid for by private persons (``private activity bonds'') is
    taxable unless the activities are specified in the Internal
    Revenue Code. Private activity bonds on which interest may be
    tax-exempt include bonds for privately operated transportation
    facilities (airports, docks and wharves, mass transit, and high
    speed rail facilities), privately owned and/or provided
    municipal services (water, sewer, solid waste disposal, and
    certain electric and heating facilities), economic development
    (small manufacturing facilities and redevelopment in
    economically depressed areas), and certain social programs
    (low-income rental housing, qualified mortgage bonds, student
    loan bonds, and exempt activities of charitable organizations
    described in sec. 501(c)(3)).
          The volume of tax-exempt private activity bonds that
    States and local governments may issue for most of these
    purposes in each calendar year is limited by State-wide volume
    limits. The current annual volume limits are $50 per resident
    of the State or $150 million if greater. The volume limits do
    not apply to private activity bonds to finance airports, docks
    and wharves, certain governmentally owned, but privately
    operated solid waste disposal facilities, certain high speed
    rail facilities, and to certain types of private activity tax-
    exempt bonds that are subject to other limits on their volume
    (qualified veterans' mortgage bonds and certain ``new''
    empowerment zone and enterprise community bonds).
          The current annual volume limits that apply to private
    activity tax-exempt bonds increase to $75 per resident of each
    State or $225 million, if greater, beginning in calendar year
    2007. The increase is, ratably phased in, beginning with $55
    per capita or $165 million, if greater, in calendar year 2003.

                                   House Bill

          No provision. However, H.R. 5542 increases the State
    volume limits from the greater of $50 per resident or $150
    million to the greater of $62.50 per resident or $187.5 million
    in calendar year 2001. The volume limit will increase further,
    to the greater of $75 per resident or $225 million in calendar
    year 2002. Beginning in calendar year 2003, the volume limit
    will be adjusted annually for inflation.
          Effective date.--The provision is effective beginning in
    calendar year 2001.

                                Senate Amendment

          No provision. However, S. 3152 increases the present-law
    annual State private activity bond volume limits to $75 per
    resident of each State or $225 million (if greater) beginning
    in calendar year 2001. In addition, the $75 per resident and
    the $225 million State limit will be indexed for inflation
    beginning in calendar year 2002.
          Effective date.--The provisions are effective beginning
    in calendar year 2001.

                              Conference Agreement

          The conference agreement follows H.R. 5542.

    F. Extension and Modification to Expensing of Environmental Remediation
             Costs (sec. 152 of the bill and sec. 198 of the Code)

                                  present law

          Taxpayers can elect to treat certain environmental
    remediation expenditures that would otherwise be chargeable to
    capital account as deductible in the year paid or incurred
    (sec. 198). The deduction applies for both regular and
    alternative minimum tax purposes. The expenditure must be
    incurred in connection with the abatement or control of
    hazardous substances at a qualified contaminated site.
          A ``qualified contaminated site'' generally is any
    property that: (1) is held for use in a trade or business, for
    the production of income, or as inventory; (2) is certified by
    the appropriate State environmental agency to be located within
    a targeted area; and (3) contains (or potentially contains) a
    hazardous substance (so-called ``brownfields''). Targeted areas
    are defined as: (1) empowerment zones and enterprise
    communities as designated under present law; (2) sites
    announced before February 1997, as being subject to one of the
    76 Environmental Protection Agency (``EPA'') Brownfields
    Pilots; (3) any population census tract with a poverty rate of
    20 percent or more; and (4) certain industrial and commercial
    areas that are adjacent to tracts described in (3) above.
    However, sites that are identified on the national priorities
    list under the Comprehensive Environmental Response,
    Compensation, and Liability Act of 1980 cannot qualify as
    targeted areas.
          Eligible expenditures are those paid or incurred before
    January 1, 2002.

                                   house bill

          No provision. However, H.R. 5542 extends the expiration
    date for eligible expenditures to include those paid or
    incurred before January 1, 2004.
          In addition, the bill eliminates the targeted area
    requirement, thereby, expanding eligible sites to include any
    site containing (or potentially containing) a hazardous
    substance that is certified by the appropriate State
    environmental agency. However, expenditures undertaken at sites
    that are identified on the national priorities list under the
    Comprehensive Environmental Response, Compensation, and
    Liability Act of 1980 would continue to not qualify as eligible
    expenditures.
          By extending and expanding section 198, the bill is not
    intended to displace the general tax law principle regarding
    expensing versus capitalization of expenditures which continues
    to apply to environmental remediation efforts not specifically
    covered under section 198.
          Effective date.--The provision to extend the expiration
    date if effective upon the date of enactment. The provision to
    expand the class of eligible sites is effective for
    expenditures paid or incurred after the date of enactment.

                                senate amendment

          No provision. However, S. 3152 includes a provision
    identical to that of the House bill provision.

                              conference agreement

          The conference agreement follows H.R. 5542.

    G. Expansion of District of Columbia Homebuyer Tax Credit (sec. 153 of
                      the bill and sec. 1400C of the Code)

                                  present law

          First-time homebuyers of a principal residence in the
    District of Columbia are eligible for a nonrefundable tax
    credit of up to $5,000 of the amount of the purchase price. The
    $5,000 maximum credit applies both to individuals and married
    couples. Married individuals filing separately can claim a
    maximum credit of $2,500 each. The credit phases out for
    individual taxpayers with adjusted gross income between $70,000
    and $90,000 ($110,000-$130,000 for joint filers). For purposes
    of eligibility, ``first-time homebuyer'' means any individual
    if such individual did not have a present ownership interest in
    a principal residence in the District of Columbia in the one
    year period ending on the date of the purchase of the residence
    to which the credit applies. The credit is scheduled to expire
    for residences purchased after December 31, 2001.

                                   house bill

          No provision. However, H.R. 5542 extends the first-time
    homebuyer credit for two years (through December 31, 2003).
          Effective date.--The provision is effective on the date
    of enactment.

                                senate amendment

          No provision. However, S. 3152 includes a provision that
    extends the first-time homebuyer credit for two years, through
    December 31, 2003. The provision also extends the phase-out
    range for married individuals filing a joint return so that it
    is twice that of individuals. Thus, under the provision, the
    District of Columbia homebuyer credit is phased out for joint
    filers with adjusted gross income between $140,000 and
    $180,000.
          Effective date.--The provision is effective for taxable
    years beginning after December 31, 2000.

                              conference agreement

          The conference agreement follows H.R. 5542.

     H. Extension of D.C. Enterprise Zone (sec. 154 of the bill and secs.
                       1400, 1400A and 1400B of the Code)

                                  present law

          The Taxpayer Relief Act of 1997 designated certain
    economically depressed census tracts within the District of
    Columbia as the District of Columbia Enterprise Zone (the
    ``D.C. Zone''), within which businesses and individual
    residents are eligible for special tax incentives. The D.C.
    Zone designation remains in effect for the period from January
    1, 1998, through December 31, 2002. In addition to the tax
    incentives available with respect to a Round I empowerment zone
    (including a 20-percent wage credit), the D.C. Zone also has a
    zero-percent capital gains rate that applies to gain from the
    sale of certain qualified D.C. Zones assets acquired after
    December 31, 1997 and held for more than five years.
          With respect to the tax-exempt financing incentives, the
    D.C. Zone generally is treated like a Round I empowerment zone;
    therefore, the issuance of such bonds is subject to the
    District of Columbia's annual private activity bond volume
    limitation. However, the aggregate face amount of all
    outstanding qualified enterprise zone facility bonds per
    qualified D.C. Zone business may not exceed $15 million (rather
    than $3 million, as is the case for Round I empowerment
    zones).\28\
    ---------------------------------------------------------------------------
          \28\ Section 1400A(a).
    ---------------------------------------------------------------------------

                                   house bill

          No provision.

                                senate amendment

          No provision. However, S. 3152 includes a provision that
    extends the D.C. Zone designation through December 31, 2006.

                              conference agreement

          The conference agreement follows S. 3152, except that the
    D.C. Zone designation is extended for one year (through
    December 31, 2003).

       I. Extension and Modification of Enhanced Deduction for Corporate
        Donations of Computer Technology (sec. 155 of the bill and sec.
                             170(e)(6) of the Code)

                                  present law

          The maximum charitable contribution deduction that may be
    claimed by a corporation for any one taxable year is limited to
    10 percent of the corporation's taxable income for that year
    (disregarding charitable contributions and with certain other
    modifications) (sec. 170(b)(2)). Corporations also are subject
    to certain limitations based on the type of property
    contributed. In the case of a charitable contribution of short-
    term gain property, inventory, or other ordinary income
    property, the amount of the deduction generally is limited to
    the taxpayer's basis (generally, cost) in the property.
    However, special rules in the Code provide an augmented
    deduction for certain corporate contributions. Under these
    special rules, the amount of the augmented deduction is equal
    to the lesser of (1) the basis of the donated property plus
    one-half of the amount of ordinary income that would have been
    realized if the property had been sold, or (2) twice the basis
    of the donated property.
          Section 170(e)(6) allows corporate taxpayers an augmented
    deduction for qualified contributions of computer technology
    and equipment (i.e., computer software, computer or peripheral
    equipment, and fiber optic cable related to computer use) to be
    used within the United States for educational purposes in
    grades K-12. Eligible donees are: (1) any educational
    organization that normally maintains a regular faculty and
    curriculum and has a regularly enrolled body of pupils in
    attendance at the place where its educational activities are
    regularly carried on; and (2) tax-exempt charitable
    organizations that are organized primarily for purposes of
    supporting elementary and secondary education. A private
    foundation also is an eligible donee, provided that, within 30
    days after receipt of the contribution, the private foundation
    contributes the property to an eligible donee described above.
          Qualified contributions are limited to gifts made no
    later than two years after the date the taxpayer acquired or
    substantially completed the construction of the donated
    property. In addition, the original use of the donated property
    must commence with the donor or the donee. Accordingly,
    qualified contributions generally are limited to property that
    is no more than two years old. Such donated property could be
    computer technology or equipment that is inventory or
    depreciable trade or business property in the hands of the
    donor.
          Donee organizations are not permitted to transfer the
    donated property for money or services (e.g., a donee
    organization cannot sell the computers). However, a donee
    organization may transfer the donated property in furtherance
    of its exempt purposes and be reimbursed for shipping,
    installation, and transfer costs. For example, if a corporation
    contributes computers to a charity that subsequently
    distributes the computers to several elementary schools in a
    given area, the charity could be reimbursed by the elementary
    schools for shipping, transfer, and installation costs.
          The special treatment applies only to donations made by C
    corporations. S corporations, personal holding companies, and
    service organizations are not eligible donors.
          The provision is scheduled to expire for contributions
    made in taxable years beginning after December 31, 2000.

                                   house bill

          No provision. However, H.R. 5542 includes a provision
    that extends the current enhanced deduction for donations of
    computer technology and equipment through December 31, 2003,
    and expands the enhanced deduction to include donations to
    public libraries. H.R. 5542 provides that qualified
    contributions include gifts made no later than three years
    after the date the taxpayer acquired or substantially completed
    the construction of the donated property.
          Effective date.--The provision is effective for
    contributions made after December 31, 2000.

                                senate amendment

          No provision. However, S. 3152 includes a provision that
    extends the current enhanced deduction for donations of
    computer technology and equipment through December 31, 2003. In
    addition, S. 3152 expands the enhanced deduction to include
    donations to public libraries.
          Effective date.--The provision is effective upon the date
    of enactment.

                              conference agreement

          The conference agreement follows H.R. 5542 with a
    modification that contributions may be made by a person that
    has reacquired the property (i.e., if a computer manufacturer
    reacquires the computer from the original user and then
    contributes it). Such reacquired property must be contributed
    within 3 years of the date the original construction of the
    property was substantially completed. The conferees anticipate
    that for purposes of computing the enhanced deduction for a
    reacquirer, the Secretary will provide guidance in determining
    the retail value of donated computers (or other computer
    technology) in situations in which the number of actual retail
    sales of used computers similar to those donated is small in
    relation to the number of such computers that are donated.
          In addition, the conference agreement provides that the
    Secretary may prescribe by regulation standards to ensure that
    the donations meet minimum functionality and suitability
    standards for educational purposes.

    J. Treatment of Indian Tribes as Non-Profit Organizations and State or
        Local Governments For Purposes of the Federal Unemployment Tax
          (``FUTA'') (sec. 156 of the bill and sec. 3306 of the Code)

                                  present law

          Present law imposes a net tax on employers equal to 0.8
    percent of the first $7,000 paid annually to each employee. The
    current gross FUTA tax is 6.2 percent, but employers in States
    meeting certain requirements and having no delinquent loans are
    eligible for a 5.4 percent credit making the net Federal tax
    rate 0.8 percent. Both non-profit organizations and State and
    local governments are not required to pay FUTA taxes. Instead
    they may elect to reimburse the unemployment compensation
    system for unemployment compensation benefits actually paid to
    their former employees. Generally, Indian tribes are not
    eligible for the reimbursement treatment allowable to non-
    profit organizations and State and local governments.

                                   house bill

          No provision. However, H.R. 5542 provides that an Indian
    tribe (in including any subdivision, subsidiary, or business
    enterprise chartered and wholly owned by an Indian tribe) is
    treated like a non-profit organization or State or local
    government for FUTA purposes (i.e., given an election to choose
    the reimbursement treatment).
          Effective date.--The provision generally is effective
    with respect to service performed beginning on or after the
    date of enactment. Under a transition rule, service performed
    in the employ of an Indian tribe is not treated as employment
    for FUTA purposes if: (1) it is service which is performed
    before the date of enactment and with respect to which FUTA tax
    has not been paid; and (2) such Indian tribe reimburses a State
    unemployment fund for unemployment benefits paid for service
    attributable to such tribe for such period.

                                senate amendment

          No provision. However, S. 3152 is the same as H.R. 5542.

                              conference agreement

          The conference agreement follows H.R. 5542 and S. 3152.

                 TITLE II.--MEDICAL SAVINGS ACCOUNTS (``MSAs'')

                (sec. 201 of the bill and sec. 220 of the Code)

                                  Present Law

          Within limits, contributions to a medical savings account
    (``MSA'') \29\ are deductible in determining adjusted gross
    income (``AGI'') if made by an eligible individual and are
    excludable from gross income and wages for employment tax
    purposes if made by the employer of an eligible individual.
    Earnings on amounts in an MSA are not currently taxable.
    Distributions from an MSA for medical expenses are not taxable.
    Distributions not used for medical expenses are taxable. In
    addition, distributions not used for medical expenses are
    subject to an additional 15-percent tax unless the distribution
    is made after age 65, death, or disability.
    ---------------------------------------------------------------------------
          \29\ In general, an MSA is a trust or custodial account created
    exclusively for the benefit of the account holder and is subject to
    rules similar to those applicable to individual retirement
    arrangements. The trustee of an MSA can be a bank, insurance company,
    or other person who demonstrates to the satisfaction of the Secretary
    that the manner in which such person will administer the trust will be
    consistent with applicable requirements.
    ---------------------------------------------------------------------------
          MSAs are available to self-employed individuals \30\ and
    to employees covered under an employer-sponsored high
    deductible plan of a small employer. An employer is a small
    employer if it employed, on average, no more than 50 employees
    on business days during either the preceding or the second
    preceding year.
    ---------------------------------------------------------------------------
          \30\ Self-employed individuals include more than 2-percent
    shareholders of S corporations who are treated as partners for purposes
    of fringe benefit rules pursuant to section 1372. Self-employed
    individuals are eligible for an MSA regardless of the size of the
    entity for which the individual performs services.
    ---------------------------------------------------------------------------
          In order for an employee of a small employer to be
    eligible to make MSA contributions (or to have employer
    contributions made on his or her behalf), the employee must be
    covered under an employer-sponsored high deductible health plan
    (see the definition below) and must not be covered under any
    other health plan (other than a plan that provides certain
    permitted coverage).
          Similarly, in order to be eligible to make contributions
    to an MSA, a self-employed individual must be covered under a
    high deductible health plan and no other health plan (other
    than a plan that provides certain permitted coverage). A self-
    employed individual is not an eligible individual (by reason of
    being self-employed) if the high deductible plan under which
    the individual is covered is established or maintained by an
    employer of the individual (or the individual's spouse).
          The maximum annual contribution that can be made to an
    MSA for a year is 65 percent of the deductible under the high
    deductible plan in the case of individual coverage and 75
    percent of the deductible in the case of family coverage.
          A high deductible plan is a health plan with an annual
    deductible of at least $1,550 and no more than $2,350 in the
    case of individual coverage and at least $3,100 and no more
    than $4,650 in the case of family coverage. In addition, the
    maximum out-of-pocket expenses with respect to allowed costs
    (including the deductible) must be no more than $3,100 in the
    case of individual coverage and no more than $5,700 in the case
    of family coverage.\31\ A plan does not fail to qualify as a
    high deductible plan merely because it does not have a
    deductible for preventive care as required by State law. A plan
    does not qualify as a high deductible health plan if
    substantially all of the coverage under the plan is for
    permitted coverage. In the case of a self-insured plan, the
    plan must in fact be insurance (e.g., there must be appropriate
    risk shifting) and not merely a reimbursement arrangement.
    ---------------------------------------------------------------------------
          \31\ These dollar amounts are for 2000. These amounts are indexed
    for inflation in $50 increments.
    ---------------------------------------------------------------------------
          The number of taxpayers benefiting annually from an MSA
    contribution is limited to a threshold level (generally 750,000
    taxpayers). If it is determined in a year that the threshold
    level has been exceeded (called a ``cut-off'' year) then, in
    general, for succeeding years during the 4-year pilot period
    1997-2000, only those individuals who (1) made an MSA
    contribution or had an employer MSA contribution for the year
    or a preceding year (i.e., are active MSA participants) or (2)
    are employed by a participating employer, is eligible for an
    MSA contribution. In determining whether the threshold for any
    year has been exceeded, MSAs of individuals who were not
    covered under a health insurance plan for the six month period
    ending on the date on which coverage under a high deductible
    plan commences would not be taken into account.\32\ However, if
    the threshold level is exceeded in a year, previously uninsured
    individuals are subject to the same restriction on
    contributions in succeeding years as other individuals. That
    is, they would not be eligible for an MSA contribution for a
    year following a cut-off year unless they are an active MSA
    participant (i.e., had an MSA contribution for the year or a
    preceding year) or are employed by a participating employer.
    ---------------------------------------------------------------------------
          \32\ permitted coverage does not constitute coverage under a
    health insurance plan for this purpose.
    ---------------------------------------------------------------------------
          The number of MSAs established has not exceeded the
    threshold level.
          After December 31, 2000, no new contributions may be made
    to MSAs except by or on behalf of individuals who previously
    had MSA contributions and employees who are employed by a
    participating employer. An employer is a participating employer
    if (1) the employer made any MSA contributions for any year to
    an MSA on behalf of employees or (2) at least 20 percent of the
    employees covered under a high deductible plan made MSA
    contributions of at least $100 in the year 2000.
          Self-employed individuals who made contributions to an
    MSA during the period 1997-2000 also may continue to make
    contributions after 2000.

                                   House Bill

          No provision. However, H.R. 5542 extends the MSA program
    through 2002. The same rules that apply to the limit on MSAs
    for 1999 apply to 2000 and 2001. Thus, for example, the
    threshold level in those years is 750,000 taxpayers.
          Effective date.--The provision is effective on the date
    of enactment.

                                Senate Amendment

          No provision.

                              Conference Agreement

          The conference report follows H.R. 5542, except that MSAs
    are renamed as Archer MSAs. The conference agreement clarifies
    that, as under present law, the cap and reporting requirements
    do not apply for 2000.

        TITLE III.--ADMINISTRATIVE AND TECHNICAL CORRECTIONS PROVISIONS

                     Subtitle A.--Administration Provisions

     A. Exempt Certain Reports From Elimination Under the Federal Reports
           Elimination and Sunset Act of 1995 (sec. 301 of the bill)

                                  present law

          Section 303 of the Federal Reports Elimination and Sunset
    Act of 1995 eliminates many periodic Federal reporting
    requirements, effective May 15, 2000.

                                   house bill

          No provision. However, H.R. 5542 exempts certain reports
    from elimination and sunset pursuant to the Federal Reports
    Elimination and Sunset Act of 1995.

                                senate amendment

          No provision.

                              conference agreement

          The conference agreement follows H.R. 5542.

       B. Extension of Deadlines for IRS Compliance with Certain Notice
     Requirements (sec. 302 of the bill and secs. 6631 and 6751(a) of the
                                     Code)

                                  present law

          The Internal Revenue Service Restructuring and Reform Act
    of 1998 (``IRS Restructing Act of 1998'') imposed several
    notice requirements relating to penalties, interest and
    installment agreements. Section 6715 of the Code, added by
    section 3306 of the IRS Restructing Act of 1998, requires that
    each notice imposing a penalty include the name of the penalty,
    the Code section under which the penalty is imposed, and a
    computation of the penalty.\33\ This requirement applies to
    notices issued, and penalties assessed, after December 31,
    2000.\34\
    ---------------------------------------------------------------------------
          \33\ Sec. 6715(a).
          \34\ P.L. 105-206, sec. 3306.
    ---------------------------------------------------------------------------
          Section 6631 of the Code, added by section 3308 of the
    IRS Restructuring Act of 1998, requires that every IRS notice
    sent to an individual taxpayer that includes an amount of
    interest required to be paid by the taxpayer also include a
    detailed computation of the interest charged and a citation to
    the Code section under which such interest is imposed. The
    provision is effective for notices issued after December 31,
    2000.
          Section 3506 of the IRS Restructuring Act of 1998
    requires the IRS to send every taxpayer in an installment
    agreement an annual statement of the initial balance owed, the
    payments made during the year, and the remaining balance. The
    provision became effective on July 1, 2000.

                                   house bill

          No provision. However, H.R. 5542 extend the deadlines for
    complying with the penalty, interest, and installment agreement
    notice requirements. Specifically, the annual installment
    agreement notice requirement is extended from July 1, 2000, to
    September 1, 2001. The deadlines for complying with the notice
    requirements relating to the computation of penalties and
    interest \35\ are both extended to June 30, 2001. In addition,
    for penalty notices issued after June 30, 2001, and before July
    1, 2003, the notice requirements will be treated as met if the
    notice contains a telephone number at which the taxpayer can
    request a copy of the taxpayer's assessment and payment history
    with respect to such penalty. Similarly, for interest notices
    issued after June 30, 2001, and before July 1, 2003, the notice
    requirements will be treated as met if such notice contains a
    telephone number at which the taxpayer can request a copy of
    the taxpayer's payment history relating to interest amounts
    included in such notice.
    ---------------------------------------------------------------------------
          \35\ Secs. 6715(a) and 6631.
    ---------------------------------------------------------------------------
          Effective date.--The provision is effective on the date
    of enactment.

                                Senate amendment

          No provision.

                              Conference agreement

          The conference agreement follows H.R. 5542.

     C. Extension of Authority for Undercover Operations (sec. 303 of the
                        bill and sec. 7608 of the Code)

                                  present law

          The Anti-Drug Abuse Act of 1988 exempted IRS undercover
    operations from the otherwise applicable statutory restrictions
    controlling the use of Government funds (which generally
    provide that all receipts must be deposited in the general fund
    of the Treasury and all expenses be paid out of appropriated
    funds). In general, the exemption permits the IRS to ``churn''
    the income earned by an undercover operation to pay additional
    expenses incurred in the undercover operation. The IRS is
    required to conduct a detailed financial audit of large
    undercover operations in which the IRS is churning funds and to
    provide an annual audit report to the Congress on all such
    large undercover operations. The exemption originally expired
    on December 31, 1989, and was extended by the Comprehensive
    Crime Control Act of 1990 to December 31, 1991. In the Taxpayer
    Bill of Rights II (Public Law 104-168), the authority to churn
    funds from undercover operations was extended for five years,
    through 2000.

                                   house bill

          No provision. However, H.R. 5542 extends the authority of
    the IRS to ``churn'' the income earned from undercover
    operations for an additional five years, through 2005.
          Effective date.--The provision is effective on the date
    of enactment.

                                Senate amendment

          No provision.

                              conference agreement

          The conference agreement follows H.R. 5542.

    D. Competent Authority and Pre-Filing Agreements (sec. 304 of the bill
              and secs. 6103, 6110, and new sec. 6105 of the Code)

                                  present law

    Section 6103
          Section 6103 of the Code sets forth the general rule that
    returns and return information are confidential. A return is
    any tax return, information return, declaration of estimated
    tax, or claim for refund filed under the Code on behalf of or
    with respect to any person. The term return also includes any
    amendment or supplement, including supporting schedules or
    attachments or lists, which are supplemental to or are part of
    a filed return. Return information is defined broadly. It
    includes the following information:
                A taxpayer's identity, the nature, source or amount
            of income, payments, receipts, deductions, exemptions,
            credits, assets, liabilities, net worth, tax liability,
            tax withheld, deficiencies, over assessments, or tax
            payments;
                Whether the taxpayer's return was, is being, or
            will be examined or subject to other investigations or
            processing;
                Any other data, received by, recorded by, prepared
            by, furnished to, or collected by the Secretary with
            respect to a return or with respect to the
            determination of the existence, or possible existence,
            of liability (or the amount thereof) of any person
            under this title for any tax, penalty, interest, fine,
            forfeiture, or other imposition, or offense;\36\
    ---------------------------------------------------------------------------
          \36\ Sec. 6103(b)(2)(A).
    ---------------------------------------------------------------------------
                Any part of any written determination or any
            background file document relating to such written
            determination which is not open to the public
            inspection under section 6110,\37\ and
    ---------------------------------------------------------------------------
          \37\ Sec. 6103(b)(2)(B).
    ---------------------------------------------------------------------------
                Any advance pricing agreement entered into by a
            taxpayer and the Secretary and any background
            information related to the agreement or any application
            for an advance pricing agreement.
          The term ``return information'' does not include data in
    a form that cannot be associated with or otherwise identify,
    directly or indirectly, a particular taxpayer.
    Secrecy of information exchanged under tax treaties
          U.S. tax treaties typically contain articles governing
    the exchange of information. These articles generally provide
    for the exchange of information between the tax authorities of
    the two countries when such information is necessary for
    carrying out provisions of the treaty or of the countries'
    domestic tax laws. Individuals referred to as ``competent
    authorities'' are designated by each country to make written
    requests for information and to receive information.\38\
    ---------------------------------------------------------------------------
          \38\ The U.S. competent authority is the Secretary of the
    Treasury or his delegate. The U.S. competent authority function has
    been delegated to the Commissioner of Internal Revenue, who has
    redelegated the authority to the Director, International. On
    interpretive issues, the latter acts with the concurrence of the
    Associate Chief Counsel (International) of the IRS.
    ---------------------------------------------------------------------------
          The exchange of information articles typically cover
    information relating to taxes to which the treaty applies, but
    can also apply to other taxes (e.g., excise taxes) not covered
    by the treaty. Many of the treaties permit the exchange of
    information even if the taxpayer involved is not a resident of
    one of the treaty countries. The exchange of information
    articles may be similar to, or represent a variation on,
    Article 26 of the 1996 U.S. model income tax treaty.
          Information that is received under the exchange of
    information articles is subject to secrecy clauses contained in
    the treaties. In this regard, the country requesting
    information under the treaties typically is required to treat
    any information received as secret in the same manner as
    information obtained under its domestic laws. In general,
    disclosure is not permitted other than to persons or
    authorities involved in the administration, assessment,
    collection or enforcement of taxes to which the treaty applies.
    For example, disclosure generally can be made to legislative
    bodies, such as the tax-writing committees of the Congress, and
    the General Accounting Office for purposes of overseeing the
    administration of U.S. tax laws.
          In addition to the exchange of information articles in
    U.S. tax treaties, exchange of information provisions are
    contained in tax information exchange agreements entered into
    between the United States and another country.\39\ In addition,
    information may be exchanged pursuant to the Convention on
    Mutual Administrative Assistance in Tax Matters developed by
    the Council of Europe and the Organization for Economic
    Cooperation and Development (the ``Multilateral Mutual
    Assistance Convention''), which limits the use of exchanged
    information and permits disclosure of such information only
    with the prior authorization of the competent authority of the
    country providing the information.\40\ The United States has
    also entered into a number of implementation and coordination
    agreements with possessions that provide for the exchange of
    tax information. Moreover, the United States has entered into
    various mutual legal assistance treaties with other countries,
    some of which can be used to obtain tax information in criminal
    investigations.
    ---------------------------------------------------------------------------
          \39\ Sections 274(h)(6)(C) and 927(e)(3) specifically provide the
    Secretary of the Treasury the authority to enter into tax information
    exchange agreements. This eliminates the need for Senate ratification,
    which is required for a tax treaty. In addition, all tax information
    exchange agreements are required to include specific non-disclosure
    provisions which provide that ``information received by either country
    will be disclosed only to persons or authorities (including courts and
    administrative bodies) involved in the administration or oversight of,
    or in the determination of appeals in respect of, taxes of the United
    States, or the beneficiary country and will be used by such persons or
    authorities only for such purposes.'' Sec. 274(h)(6)C)(i).
          \40\ The U.S. Senate ratified the Multilateral Mutual Assistance
    Convention, subject to certain reservations, in September 1990. The
    Multilateral Mutual Assistance Convention entered into force on April
    1, 1995, and has been signed by the following countries: Denmark,
    Finland, Iceland, the Netherlands, Norway, Sweden, and the United
    States.
    ---------------------------------------------------------------------------
          Both the confidentiality provisions of section 6103, as
    well as treaty secrecy provisions can cover return information.

    Section 6110 and section 7121

          Section 6110 of the Code provides for disclosure of
    written determinations. With certain exceptions, section 6110
    makes the text of any written determination the Internal
    Revenue Service (``IRS'') issues available for pubic
    inspection. A written determination is any ruling,
    determination letter, technical advice memorandum, or Chief
    Counsel advice. The IRS is required to redact certain material
    before making these documents publicly available.\41\ Among the
    information to be redacted is information specifically exempted
    from disclosure by any statute (other than Title 26) that is
    applicable to the IRS. Once the IRS makes the written
    determination publicly available, the background file documents
    associated with such written determination are available for
    public inspection upon written request. Section 6110 defines
    ``background file documents'' as any written material submitted
    by the taxpayer or other requester in support of the request.
    Background file documents also include any communications
    between the IRS and persons outside the IRS concerning such
    written determination that occur before the IRS issues the
    determination.
    ---------------------------------------------------------------------------
          \41\ For rulings, determination letters and technical advice
    memorandum, section 6110(c) provides the following exemptions from
    disclosure:
          (1) The names, addresses, and other identifying details of the
    person to whom the written determination pertains and of any other
    person, other than a person with respect to whom a notation is made
    under subsection (d)(1) (relating to third party contacts), identified
    in the written determination or any background file document;
          (2) Information specifically authorized under criteria
    established by an Executive order to be kept secret in the interest of
    national defense or foreign policy, and which is in fact properly
    classified pursuant to such Executive order;
          (3) Information specifically exempted from disclosure by any
    statute (other than [Title 26] which is applicable to the Internal
    Revenue Service;
          (4) Trade secrets and commercial or financial information
    obtained from a person and privileges or confidential;
          (5) Information the disclosure of which would constitute a
    clearly unwarranted invasion of personal privacy;
    ---------------------------------------------------------------------------
          Section 6110 was added to the Code in 1976. The
    legislative history provided that a written determination would
    not be considered a ruling, technical advice memorandum, or
    determination letter, unless the document satisfies three
    criteria:
                (1) The document recites the relevant facts;
                (2) The document explains the applicable provisions
            of law; and
                (3) The document shows the application of law to
            the facts.\42\
    ---------------------------------------------------------------------------
          \42\ H.R. Rep. 94-658, at 315 (1976).
    ---------------------------------------------------------------------------
          The legislative history further provided that section
    6110 ``does not require public disclosure of a closing
    agreement entered into between the IRS and a taxpayer which
    finally determines the taxpayer's tax liability with respect to
    a taxable year. . . . Your committee understands that a closing
    agreement is generally the result of a negotiated settlement
    and, as such, does not necessarily represent the IRS view of
    the law. Your committee intends, however, that the closing
    agreement exception is not to be used as a means of avoiding
    public disclosure of determinations which, under present
    practice, would be issued in a form which would be open to
    public inspection [under the bill].'' \43\
    ---------------------------------------------------------------------------
          \43\ Id. at 316.
    ---------------------------------------------------------------------------
          Closing agreements are entered into under the authority
    of section 7121. Closing agreements finally and conclusively
    settle a tax issue between the IRS and a taxpayer. Closing
    agreements may: (1) determine a taxpayer's entire tax liability
    for a previous tax period; or (2) fix the tax treatment of one
    or more specific items affecting tax liability for any tax
    period. Thus, closing agreements may settle the treatment of a
    specific item for periods ending after the execution of the
    agreement. A single closing agreement may cover both the
    determination of a taxpayer's entire tax liability for a
    previous tax period and fix the tax treatment of specific items
    for any tax period.

    Freedom of Information Act

          The Freedom of Information Act (``FOIA''), enacted in
    1966, established a statutory right to access government
    information. While the purpose of section 6103 is to restrict
    access to returns and return information, the basic purpose of
    the FOIA is to ensure that the public has access to government
    documents. In general, the FOIA provides that any person has a
    right of access to Federal agency records, except to the extent
    that such records (or portions thereof) are protected from
    disclosure by one of nine exemptions or by one of three special
    law enforcement record exclusions. Exemption 3 of the FOIA
    allows the withholding of information prohibited from
    disclosure by another statute if certain requirements are
    met.\44\ The right of access is enforceable in court.
    ---------------------------------------------------------------------------
          \44\ 5 U.S.C. sec. 552(b)(3).
    ---------------------------------------------------------------------------

    Pending FOIA requests and litigation involving IRS records

                Records covered by treaty secrecy clauses
          A publisher of tax related material and commentary has
    made a FOIA request for the disclosure of competent authority
    agreements. The request has been pending since March 14,
    2000.\45\ The IRS has not denied the request, nor has it
    produced any documents responsive to the request. At this time,
    no suit has been filed to compel disclosure of these documents,
    although such a suit may be brought in the future.
    ---------------------------------------------------------------------------
          \45\ The initial FOIA request of March 14, 2000, covered all
    competent authority agreements executed for the United States from
    January 1, 1990, to date. In response to a request from the Department
    of Treasury, by letter dated April 17, 2000, the FOIA request was
    narrowed to cover competent authority agreements executed between 1997
    and 1999. The right to pursue the 1990 through 1996 agreements,
    however, was reserved.
    ---------------------------------------------------------------------------
          In connection with a separate request, the IRS was sued
    under the FOIA to compel disclosure of Field Service Advice
    memoranda (``FSAs'').\46\ FSAs are prepared by attorneys in the
    IRS National Office of the Office of Chief Counsel. They are
    prepared in response to requests from IRS field personnel for
    legal guidance, usually with respect to issues relating to a
    particular taxpayer. FSAs usually contain a statement of
    issues, facts, legal analysis and conclusions. The primary
    purpose of FSAs is to ensure that IRS field personnel apply the
    law correctly and uniformly. The D.C. Circuit determined that
    FSAs are subject to disclosure. However, the court remanded the
    case to district court to address assertions of privilege,
    including those based on treaty secrecy. A decision on this
    issue by the district court is still pending.\47\
    ---------------------------------------------------------------------------
          \46\ Tax Analysts v. IRS, 117 F.3d 607 (D.C. Cir. 1997).
          \47\ Tax Analysts v. IRS, No. 94-CV-923 (GK) (D.D.C.).
    ---------------------------------------------------------------------------
                Pre-filing agreements
          On February 11, 2000, the IRS issued Notice 2000-12, in
    which the IRS established a pilot program for ``Pre-filing
    Agreements.'' Under this program, large businesses may request
    a review and resolution of specific issues relating to tax
    returns they expect to file between September and December of
    2000. The purpose of the program is to enable taxpayers and the
    IRS to resolve issues that are likely to be disputed in post-
    filing audits. Examples of such issues include: (1) asset
    valuation and the allocation of a business's purchase or sale
    price among the assets acquired or sold; (2) the identification
    and documentation of hedging transactions; and (3) the
    determination of ``market'' for taxpayers using the lower of
    cost or market method of inventory valuation in situations
    involving inactive markets. The program is intended to address
    issues for which the law is settled.
          In Notice 2000-12, the IRS stated that pre-filing
    agreements are closing agreements entered into pursuant to
    section 7121. As such, the notice provides that the information
    generated or received by the IRS during the pre-filing
    agreement process constitutes return information. The notice
    further provides that pre-filing agreements are not written
    determinations as defined in section 6110, nor are they subject
    to disclosure under the FOIA.
        Several pre-filing agreements have been completed. A FOTA
    request for these agreements has not been made.

                                   House Bill

          No provision. However, H.R. 5542 affirms that closing and
    similar agreements, and information exchanged and agreements
    reached pursuant to a tax treaty, are confidential. Further,
    the provision clarifies that such protected documents are not
    to be disclosed under the FOIA or section 6110.

    Clarification that return information includes closing agreements and
            similar dispute resolution agreements

                Protection for closing agreements, pre-filing agreements
                        and similar agreements not containing an exposition
                        of the tax law
          The bill provides that agreements entered into under
    section 7121 or similar agreements are confidential return
    information. Similar agreements are intended to include
    negotiated agreements that (1) are the result of an alternative
    dispute resolution or dispute avoidance process relating to
    liability of any person under the Code for any tax, penalty,
    interest, fine or forfeiture or other imposition or offense and
    (2) do not establish, set forth, or resolve the government's
    interpretation of the relevant tax law. This is not meant to
    preclude citation, or repetition of, the Code, Treasury
    regulations, or other published rules.
          It is intended that pre-filing agreements be covered by
    this provision. It is the understanding of the conferees that
    pre-filing agreements do not explain the applicable provisions
    of law or otherwise contain any exposition of the tax law or
    the position of the IRS. In addition, it is not intended that
    the closing and similar agreement exception be used as a means
    of avoiding public disclosure of determinations that, under
    present law, would be issued in a form that would be open to
    public inspection. Thus, technical advice memoranda, chief
    counsel advice or other material clearly available to the
    public under present law section 6110, would not be exempt from
    disclosure by virtue of the fact that such material is
    contained in a background file for a closing agreement. For
    example, if a revenue agent seeks technical advice in
    connection with a pre-filing agreement, such technical advice
    would remain subject to the requirements of section 6110. Since
    the pre-filing agreement program involves only settled issues
    of law, it is the understanding of the conferees that documents
    of this nature generally would not be generated in the pre-
    filing agreement process.
          The provision is not intended to foreclose the disclosure
    of tax-exempt organization closing agreements to the extent
    such disclosure is authorized under section 6104.\48\ Since
    section 6103 permits the disclosure of return information as
    authorized by Title 26, a disclosure authorized by section 6104
    is permissible, notwithstanding the fact that a closing
    agreement is return information.
    ---------------------------------------------------------------------------
          \48\ The D.C. Circuit recently remanded to the district court for
    factual development the issue of whether the closing agreement in that
    case was submitted in support of an exemption application, and
    therefore, subject to disclosure under section 6104. Tax Analysts v.
    IRS, 214 F.3d 179 (D.C. Cir 2000), vacating and remanding 99-2 U.S.T.C.
    (CCH) 794 (D.D.C. 1999).
    ---------------------------------------------------------------------------
                Report on pre-filing agreement program
          It is intended that the Secretary make publicly available
    an annual report relating to the pre-filing agreement program
    operations for the preceding calendar year. The annual
    reporting requirement is for five years, or the duration of the
    program, whichever is shorter. The report is to include (1) the
    number of pre-filing agreements completed, (2) the number of
    applications received, (3) the number of applications
    withdrawn, (4) the types of issues which are resolved by
    completed agreements, (5) whether the program is being utilized
    by taxpayers who were previously subject to audit by the IRS,
    (6) the average length of time required to complete an
    agreement, (7) the number, if any, and subject of technical
    advice and chief counsel advice memoranda issued to address
    issues arising in connection with any pre-filing agreement, (8)
    any model agreements,\49\ and (9) any other information the
    Secretary deems appropriate. The first report, covering the
    calendar year 2000, is to be issued no later than March 30,
    2001. The information required for the annual report is subject
    to the restrictions of section 6103. Therefore, the Secretary
    will disclose information only in a form that cannot be
    associated with or otherwise identify, directly or indirectly,
    a particular taxpayer. The Joint Committee on Taxation
    periodically may review pre-filing agreements to determine
    whether they contain legal interpretations that should be
    disclosed to the public.
    ---------------------------------------------------------------------------
          \49\ See e.g., Appendix A of Rev. Proc. 2000-38 which is a model
    ``Closing Agreement on Final Determination Covering Specific Matters''
    regarding method of accounting for distributor commissions. Rev. Proc.
    2000-38, 2000-40 I.R.B. 314-315 (October 2, 2000). That model agreement
    does not identify any particular taxpayer but sets forth the substance
    of the agreement.
    ---------------------------------------------------------------------------
    Clarification that information protected by treaty is confidential
                Protection for agreements and information exchanged
                        pursuant to tax treaty
          The provision adds a new Code section 6105, which
    provides that tax convention information, with limited
    exceptions, cannot be disclosed. Thus, the provision confirms
    that agreements concluded under, and information received
    pursuant to, a tax convention are confidential and can only be
    disclosed as provided in such tax convention.
          Under the provision, a tax convention is defined to
    include any income tax or gift and estate tax convention, or
    any other convention or bilateral agreement (including
    multilateral conventions and agreements and any agreement with
    a possession of the United States) providing for the avoidance
    of double taxation, the prevention of fiscal evasion,
    nondiscrimination with respect to taxes, the exchange of tax
    relevant information with the United States, or mutual
    assistance in tax matters.
          It is the understanding of the conferees that competent
    authority agreements (also referred to as mutual agreements)
    generally do not contain an explanation of the law or
    application of law to facts. Instead, such agreements are
    negotiated arrangements to resolve issues of double taxation.
    Thus, the term tax convention information for purposes of the
    provision includes: (1) any agreement entered into with the
    competent authority of one or more foreign governments pursuant
    to a tax convention; (2) an application for relief under a tax
    convention (sought by either a taxpayer or another competent
    authority); (3) any background information related to such
    agreement or application; (4) documents implementing such
    agreement; and (5) any other information exchanged pursuant to
    a tax convention that is treated as confidential or secret
    under such tax convention. The conferees intend that tax
    convention information would include documents and any other
    information that reflects tax convention information, including
    the association of a particular treaty partner with a specific
    issue or matter.
          The general rule that tax convention information cannot
    be disclosed does not apply to the disclosure of tax convention
    information to persons or authorities (including courts and
    administrative bodies) that are entitled to disclosure under
    the tax convention. It also does not apply to any generally
    applicable procedural rules regarding applications for relief
    under a tax convention. This exception is intended to ensure
    that there is no restriction on the release by the Secretary of
    publicly available procedural rules concerning matters such as
    how or when to make a request for competent authority
    assistance. Thus, certain material generated by IRS, i.e., its
    Competent Authority procedures (primarily reflected in Rev.
    Proc. 96-13), or similar material produced by a treaty partner
    (for example, an Information Circular produced and published by
    the Canadian tax authority) may be made available to the
    public. The general rule does not apply to the disclosure of
    information not relating to a particular taxpayer if, after
    consultation with the parties to a tax convention, the
    Secretary determines that such disclosure would not impair tax
    administration. This is consistent with current practice. An
    example of a general agreement that could be disclosed under
    this provision is the agreement between the competent
    authorities of Mexico and the United States regarding the
    maquiladora industry. That agreement, which was not taxpayer
    specific, was publicized by press release IR-INT-1999-13. The
    conferees intend that the ``impairment of tax administration''
    for purposes of this provision include, but not be limited to,
    the release of documents that would adversely affect the
    working relationship of the treaty partners. Under the
    provision, except as otherwise provided, taxpayer-specific tax
    convention information could not be publicly disclosed, even if
    it would not impair tax administration.
          A taxpayer-specific competent authority agreement that
    relates to the existence or possible existence of liability (or
    amount thereof) of any person for any tax, penalty, interest,
    fine, forfeiture, or other imposition or offense under the Code
    is return information under section 6103. It is also an
    agreement pursuant to a tax convention under section 6105.
    Return information, including taxpayer-specific competent
    authority agreements, remains subject to the confidentiality
    provisions of section 6103. Thus, civil and criminal penalties
    for the unauthorized disclosure of returns and return
    information continue to apply to return information that is
    also covered by section 6105. However, tax convention
    information that is return information may only be disclosed to
    the extent provided in, and subject to the terms and conditions
    of, the relevant tax convention.
    Interaction with FOIA and section 6110
          Under the provision, closing agreements and similar
    agreements would not be considered written determinations for
    purposes of section 6110 and, thus, would not be subject to
    public disclosure. Such agreements would be defined as return
    information under section 6103 and, therefore, such documents
    would be protected from disclosure pursuant to Exemption 3 of
    the FOIA in conjunction with section 6103.
          In addition, under the provision, section 6110 would not
    apply to material covered by section 6105. In the litigation
    over FSAs, there has been some dispute as to whether treaties
    qualify as statutes for purposes of withholding information
    pursuant to Exemption 3 of the FOIA. The conferees believe that
    treaties are the equivalent of statutes for purposes of
    Exemption 3 of the FOIA. Section 6105 satisfies Exemption 3 of
    the FOIA. Taxpayer-specific tax convention information
    concerning a taxpayer's tax liability, such as taxpayer-
    specific competent authority agreements, would be exempt from
    the FOIA as both return information under section 6103 and
    information protected from disclosure by tax convention under
    section 6105. Agreements not relating to a particular taxpayer,
    and other tax convention information related to such
    agreements, could be disclosed under FOIA if it is determined
    that the disclosure would not impair tax administration.
    Effective date
          The provision applies to disclosures on, or after, the
    date of enactment, and thus, applies to all documents in
    existence on, or created after, the date of enactment.

                                senate amendment

          No provision.

                              conference agreement

          The conference agreement follows H.R. 5542.

     E. Increase Joint Committee on Taxation Refund Review Threshold to $2
            Million (sec. 305 of the bill and sec. 6405 of the Code)

                                  Present Law

          No refund or credit in excess of $1,000,000 of any income
    tax, estate or gift tax, or certain other specified taxes, may
    be made until 30 days after the date a report on the refund is
    provided to the Joint Committee on Taxation (sec. 6405). A
    report is also required in the case of certain tentative
    refunds. Additionally, the staff of the Joint Committee on
    Taxation conducts post-audit reviews of large deficiency cases
    and other select issues.

                                   House Bill

          No provision. However, H.R. 5542 increases the threshold
    above which refunds must be submitted to the Joint Committee on
    Taxation for review from $1,000,000 to $2,000,000. The staff of
    the Joint Committee on Taxation would continue to exercise its
    existing statutory authority to conduct a program of expanded
    post-audit reviews of large deficiency cases and other select
    issues, and the IRS is expected to cooperate fully in this
    expanded program.
          Effective date.--The provision is effective on the date
    of enactment, except that the higher threshold does not apply
    to a refund or credit with respect to which a report was made
    before the date of enactment.

                                Senate Amendment

          No provision.

                              Conference Agreement

          The conference agreement follows H.R. 5542.

      F. Clarifying the Allowance of Certain Tax Benefits With Respect to
     Kidnapped Children (sec. 306 of the bill and secs. 2, 24, 32, and 151
                                  of the Code)

                                  Present Law

          The Code generally requires that a taxpayer provide over
    one-half of the support for each individual claimed as that
    taxpayer's dependent. Similarly, the child credit, the
    surviving spouse filing status, and the head of household
    filing status require that a taxpayer satisfy certain
    requirements with regard to individuals that qualify as the
    taxpayer's dependent(s). Finally, the earned income credit for
    taxpayers with qualifying children generally is available only
    if the taxpayer has the same principal place of abode for more
    than one-half the taxable year with an otherwise qualifying
    child.
          Recently published IRS guidance first denied a dependency
    exemption to certain taxpayers with kidnapped children (TAM
    200034029), then allowed such tax benefits to such taxpayers
    (TAM 200038059).

                                   House Bill

          No provision. However, H.R. 5542 clarifies that the
    dependency exemption, the child credit, the surviving spouse
    filing status, the head of household filing status, and the
    earned income credit are available to an otherwise qualifying
    taxpayer with respect to a child who is presumed by law
    enforcement authorities to have been kidnapped by someone who
    is not a member of the family of such child or the taxpayer.
    Generally, this treatment continues for all taxable years
    ending during the period that the child is kidnapped. However,
    this treatment ends for the taxable year ending after the
    calendar year in which it is determined that the child is dead
    (or, if earlier, in which the child would have attained age
    18).
          Effective date.--The provision is effective for taxable
    years ending after the date of enactment.

                                Senate Amendment

          No provision.

                              Conference Agreement

          The conference agreement follows H.R. 5542.

       G. Conforming Changes To Accommodate Reduced Issuances of Certain
      Treasury Securities (sec. 307 of the bill and sec. 995(f)(4) of the
                                     Code)

                                  Present Law

          Code section 995(f)(4) dealing with the interest charge
    on the deferred tax liability of the shareholders of a domestic
    international sales corporation provides that the interest rate
    be determined by reference to the average investment yield on
    United States Treasury bills with maturities of 52 weeks. In
    addition, provisions of Federal law relating to interest on
    monetary judgments in civil cases recovered in Federal district
    court and on a judgment against the United States affirmed by
    the Supreme Court (Title 28), interest on certain unpaid
    criminal fines and penalties (Title 18), and interest on
    compensation for certain takings of property (Title 40)
    determine the applicable interest rate by reference to 52-week
    Treasury bills.
          As a result of prior Congressional efforts at budgetary
    control, current and projected Federal budget surpluses are
    reducing the need of the Treasury Department to issue certain
    securities. The Treasury Department has informed the Congress
    that on grounds of efficient debt management, and
    predictability and liquidity for the financial markets, the
    Treasury Department has announced it is likely to cease issuing
    52-week Treasury bills.

                                   House Bill

          No provision. However, H.R. 5542 modifies the Code (sec.
    995(f)(4)) and certain other parts of Federal law relating to
    interest on monetary judgments in civil cases recovered in
    Federal district court and on a judgment against the United
    States affirmed by the Supreme Court (Title 28), interest on
    certain unpaid criminal fines and penalties (Title 18), and
    interest on compensation for certain takings of property (Title
    40) that make specific reference to yields on 52-week Treasury
    bills. H.R. 5542 generally replaces the reference to 52-week
    Treasury bills with a reference to the weekly average one-year
    constant maturity Treasury yield, as published by the Board of
    Governors of the Federal Reserve System.
          Effective date.--The provision is effective upon the date
    of enactment.

                                Senate Amendment

          No provision.

                              Conference Agreement

          The conference agreement follows H.R. 5542.

      H. Authorization of Agencies to Use Corrected Consumer Price Index
                             (sec. 308 of the bill)

                                  present law

          Code section 1(f) provides for adjustments in the tax
    tables so that inflation will not result in tax increases.
    Numerous other provisions of the Code are indexed as well.
    Section 1(f) provides that inflation is measured by changes in
    the consumer price index (``CPI'') for the preceding year as
    published by the Department of Labor compared to the CPI for
    the calendar year 1992. Section 1(f) directs the Secretary to
    publish tables with applicable tax rates based upon calculated
    inflation adjustments by December 15 of the year before the
    year to which the tables are to apply.
          In addition, payments made under Social Security, certain
    Federal employee retirement programs, and certain payments to
    individuals under various welfare and income support programs
    are adjusted annually by changes in the CPI.
          On September 28, 2000, the Bureau of Labor Statistics
    (``BLS'') announced that the agency had discovered a
    computational error in quality adjustments of air conditioning
    as a part of the cost of housing resulting in errors in the
    reported CPI between January 1999 and August 2000. The BLS
    reported that the CPI levels starting in January 1999 have been
    either 0.0, 0.1, or 0.2 index points lower than the levels that
    would have been published without the error. Consistent with
    agency guidelines and past practice, the BLS announced that it
    is revising the reported CPI back to January 2000 to the fully
    correct levels. The BLS will make no change to reported levels
    for January through December 1999. However, the BLS will make
    the corrected levels of the CPI for 1999 available upon
    request.

                                   house bill

          No provision. However, H.R. 5542 authorizes the Secretary
    of the Treasury to use the corrected levels of the CPI for 1999
    and 2000 for all purposes of the Code to which they might
    apply. H.R. 5542 directs the Secretary to prescribe new tables
    reflecting the correct levels of the 1999 CPI for the 2000 tax
    year.
          In addition, H.R. 5542 provides that the Director of the
    Office of Management and Budget (``OMB'') shall assess Federal
    benefit programs to ascertain the extent to which the CPI error
    has or will result in a shortfall in program payments to
    individuals for 2000 and future years. The Director is directed
    to issue guidelines to agency administrators to determine the
    extent, if any, of such shortfalls in payments to individuals.
    The agency administrators are to report their findings to the
    Director and to Congress within 30 days. H.R. 5542 provides
    that, within 60 days of the date of enactment, the Director
    instruct the head of any Federal agency which administers an
    affected program to make a payment or payments to compensate
    for the shortfall and that such payments are targeted to the
    amount of the shortfall experienced by individual
    beneficiaries. Applicable Federal benefit programs include the
    old-age and survivors insurance program, the disability
    insurance program and the supplemental security income program
    under the Social Security Act and other programs as determined
    by the Director. H.R. 5542 directs the Director to report to
    the Congress on the activities performed pursuant to this
    provision by April 1, 2001.
          Effective date.--The provision is effective on the date
    of enactment.

                                  senate bill

          No provision.

                              conference agreement

          The conference agreement follows H.R. 5542, except that
    the conference agreement directs the Secretary to prescribe new
    tables reflecting the correct levels of the CPI for the 2001
    tax year.
          The conferees note that error in the CPI was
    computational in nature. The conferees support the BLS's policy
    to incorporate methodological changes only on a prospective
    basis. The conferees also understand that BLS policy provides
    that published indices generally not be revised except for
    those found to be in error for the year in which the error was
    discovered or within the past twelve months. The conferees
    recognize that the errors in the CPI date to as long as 20
    months prior to the announcement of the error. The conferees
    recognize that the BLS's policy of not publishing corrected
    index numbers, beyond those provided as described above, has
    been applied in those rare cases where an error has been
    discovered in the past. However, the conferees understand that
    in the past 25 years the few errors that have been discovered
    have involved sub-indices and have not affected the level of
    the CPI itself. The last time the U.S. City Average All Items
    CPI was revised was in December 1974, when the values for the
    months of April through October 1974 were recalculated and
    released with issuance of the November CPI. Therefore, past
    precedent does not strictly apply to the present situation.
          The conferees believe that integrity of official
    government data is vital to policymakers and private
    individuals and businesses throughout the country. The
    conferees emphasize that the CPI plays an important role in
    economic planning. For this reason the conferees are concerned
    that, while the BLS has published corrected CPI numbers for
    2000, the BLS does not intend to publish correct CPI numbers
    for 1999 as part of the official CPI series. To its credit, the
    BLS announced the error publicly. The national press reported
    the error.\50\ In the absence of a correction to the official
    CPI series, the Federal government will be left in the position
    of maintaining, as an official data series, index numbers that
    the Federal government has admitted are incorrect. The
    conferees believe that the public's trust in the integrity of
    official government data is a paramount goal and the conferees
    strongly encourage the Commissioner of the Bureau of Labor
    Statistics to review carefully the agency's current policy with
    respect to publishing as part of an official series corrections
    to data found to be in error for reasons of computational
    error. The conferees believe such a review should be made both
    with respect to the error announced on September 28, 2000, and
    as a matter for the future for those rare circumstances when
    such a similar computational error might once again arise.
    ---------------------------------------------------------------------------
          \50\ For example, John M. Berry, ``Inflation Higher Than
    Reported,'' The Washington Post, September 27, 2000, p. E-1, John M.
    Berry, ``Rent Error Leads to Revision Of the CPI,'' The Washington
    Post, September 29, 2000, p. E-3, Nicholas Kulish, ``Major Price Index
    Is Revised Upward As Result of Error,'' The Wall Street Journal,
    September 28, 2000, p. A2, and Nicholas Kulish, ``Second-Period GDP
    Rose at 5.6% Annual Rate,'' The Wall Street Journal, September 29,
    2000, p. A2. The conferees observe that these press reports highlight
    the potential confusion for the public regarding these data. The
    Washington Post reported that ``the CPI figures for 1999 were not
    revised'' (September 29, 2000 story) while The Wall Street Journal
    reported that ``[t]he BLS said a complete revision of all the data sets
    would be released'' (September 28, 2000 story) and ``it [BLS] announced
    that it would revise the index'' (September 29, 2000 story).
    ---------------------------------------------------------------------------

     I. Prevent Duplication or Acceleration of Loss Through Assumption of
      Certain Liabilities (sec. 309 of the bill and sec. 358 of the Code)

                                  present law

          Generally, no gain or loss is recognized when one or more
    persons transfer property to a corporation in exchange for
    stock and immediately after the exchange such person or persons
    control the corporation. However, a transferor recognizes gain
    to the extent it receives money or other property (``boot'') as
    part of the exchange (sec. 351).
          The assumption of liabilities by the controlled
    corporation generally is not treated as boot received by the
    transferor,\51\ except that the transferor recognizes gain to
    the extent that the liabilities assumed exceed the total of the
    adjusted basis of the property transferred to the controlled
    corporation pursuant to the exchange (sec. 357(c)).
    ---------------------------------------------------------------------------
          \51\ The assumption of liabilities is treated as boot if it can
    be shown that ``the principal purpose'' of the assumption is tax
    avoidance on the exchange, or is a non-bona fide business purpose (sec.
    357(b)).
    ---------------------------------------------------------------------------
          The assumption of liabilities by the controlled
    corporation generally reduces the transferor's basis in the
    stock of the controlled corporation that assumed the
    liabilities. The transferor's basis in the stock of the
    controlled corporation is the same as the basis of the property
    contributed to the controlled corporation, increased by the
    amount of any gain (or dividend) recognized by the transferor
    on the exchange, and reduced by the amount of any money or
    property received, and by the amount of any loss recognized by
    the transferor (sec. 358). For this purpose, the assumption of
    a liability is treated as money received by the transferor.
          An exception to the general treatment of assumption of
    liabilities applies to assumptions of liabilities that would
    give rise to a deduction, provided the incurrence of such
    liabilities did not result in the creation or increase of basis
    of any property. The assumption of such liabilities is not
    treated as money received by the transferor in determining
    whether the transferor has gain on the exchange. Similarly, the
    transferor's basis in the stock of the controlled corporation
    is not reduced by the assumption of such liabilities. The
    Internal Revenue Service has ruled that the assumption by an
    accrual basis corporation of certain contingent liabilities for
    soil and groundwater remediation would be covered by this
    exception.\52\
    ---------------------------------------------------------------------------
          \52\ Rev. Rul. 95-74, 1995-2 C.B. 36. The ruling addressed a
    parent corporation's transfer to a subsidiary of substantially all the
    assets of a manufacturing business, in exchange for stock and the
    assumption of liabilities associated with the business, including
    certain contingent environmental remediation liabilities. These
    liabilities arose due to contamination of land during the parent
    corporation's operation of the manufacturing business. The transferor
    had no plan or intention to dispose of (or to have the subsidiary
    issue) any subsidiary stock. The IRS ruled that the contingent
    liabilities would not reduce the transferor's basis in the stock of the
    subsidiary because the liabilities had not been taken into account by
    the transferor prior to the transferor and had not given rise to
    deductions or basis for the transferor.
    ---------------------------------------------------------------------------

                                   House Bill

          No provision. However, H.R. 5542 contains a provisions to
    limit the acceleration or duplication of losses through
    assumptions of liabilities.
          Under H.R. 5542, if the basis of stock (determined
    without regard to this provision) received by a transferor as
    part of a tax-free exchange with a controlled corporation
    exceeds the fair market value of the stock, then the basis of
    the stock received is reduced (but not below the fair market
    value) by the amount (determined as of the date of the
    exchange) of any liability that (1) is assumed in exchange for
    such stock, and (2) did not otherwise reduce the transferor's
    basis of the stock by reason on the assumption. Except as
    provided by the Secretary of the Treasury, this provision does
    not apply where the trade or business with which the liability
    is associated is transferred to the corporation as part of the
    exchange, or where substantially all the assets which the
    liability is associated are transferred to the corporation as
    part of the exchange.
          The exception for transfers of a trade or business, or of
    substantially all the assets, with which a liability is
    associated, are intended to obviate the need for valuation or
    basis reduction in such cases. The exceptions are not intended
    to apply to situation involving the selective transfer of
    assets that may bear some relationship to the liability, but
    that do not represent the full scope of the trade or business,
    (or substantially all the assets) with which the liability is
    associated.
          For purposes of the provision, the term ``liability''
    includes fixed or contingent obligation to make payment,
    without regard to whether such obligation or potential
    obligation is otherwise taken into account under the Code. The
    determination whether a liability (as more broadly defined for
    purposes of this provision) has been assumed is made in
    accordance with the provisions of section 357(d)(1) of the
    Code. Under the standard of 357(d)(1), a recourse liability is
    treated as assumed if, based on all the facts and
    circumstances, the transferee has agreed to and is expected to
    satisfy such liability (or portion thereof), whether or not the
    transferor has been relieved of the liability. For example, if
    a transferee corporation does not formally assume a recourse
    obligation or potential obligation of the transferor, but
    instead agrees and is expected to indemnify the transferor with
    respect to all or a portion of such an obligation, then the
    amount that is agreed to be indemnified is treated as assumed
    for purposes of the provision, whether or not the transferor
    has been relieved of such liability. Similarly, a nonrecourse
    liability is treated as assumed by the transferee of any asset
    subject to such liability.\53\
    ---------------------------------------------------------------------------
          \53\ Section 357(d)(2) contains a limitation in the case of
    certain nonrecourse liabilities. Also, under section 357, regulations,
    if issued, may provide for different results.
    ---------------------------------------------------------------------------
          The application of the provision is illustrated in the
    following example: Assume a taxpayer transfers assets with an
    adjusted basis and fair market value of $100 to its wholly-
    owned corporation and the corporation assumes $40 of
    liabilities (the payment of which would give rise to a
    deduction). Thus, the value of the stock received by the
    transferor is $60. Under present law, the basis of the stock
    would be $100. The provision requires that the basis of the
    stock be reduced to $60 (i.e., a reduction of $40). Except as
    provided by the Secretary, no basis reduction is required if
    the transferred assets consisted of the trade or business, or
    substantially all the assets, with which the liability is
    associated.
          The provision does not change the tax treatment with
    respect to the transferee corporation.
          The Secretary of the Treasury is directed to prescribe
    rules providing appropriate adjustments to prevent the
    acceleration or duplication of losses through the assumption of
    liabilities (as defined in the provision) in transactions
    involving partnerships. The Secretary may also provide
    appropriate adjustments in the case of transactions involving S
    corporations. In the case of S corporations, such rules may be
    applied instead of the otherwise applicable basis reduction
    rules.
          Effective Date.--The provision is effective for
    assumptions of liabilities on or after October 19, 1999. Except
    as provided by the Secretary, the rule addressing transactions
    involving partnerships are effective with the same effective
    date. Any rules addressing transactions involving S
    corporations may likewise be effective for assumptions of
    liabilities on or after October 19, 1999, or such later date as
    may be prescribed in such rules.

                                senate amendment

          No provision. On April 4, 2000, Senators Roth and
    Moynihan introduced a bill (S. 2354) that is the same as the
    provision in H.R. 5542.

                              conference agreement

          The conference agreement follows H.R. 5542.

    J. Disclosure of Return Information to the Congressional Budget Office
           (sec. 310 of the bill and new sec. 6103(j)(6) of the Code)

                                  present law

          Federal tax returns and return information are
    confidential and cannot be disclosed unless authorized by the
    Code. Section 6103 authorizes certain agencies to receive tax
    returns and return information for statistical use and for
    other specified purposes.\54\ Section 6103 also permits the
    Secretary of the Treasury (``the Secretary'') to provide return
    information to any person authorized to receive it by any mode
    or means that the Secretary determines necessary or
    appropriate.\55\ Persons making unauthorized disclosures or
    inspections of tax returns and return information are subject
    to criminal and civil penalties.\56\
    ---------------------------------------------------------------------------
          \54\ E.g., sec. 6103(j), and 6103(l)(1) and (5).
          \55\ Sec. 6103(p)(2)(B).
          \56\ Sec. secs. 7431, 7213, and 7213A.
    ---------------------------------------------------------------------------

                                   House Bill

          No provision.

                                Senate Amendment

          No provision.

                              Conference Agreement

    Disclosure of return information
          The Congressional Budget Office (``CBO'') is in the
    process of developing the capability to make projections of the
    Social Security and Medicare programs over long periods of
    time. To facilitate the development and operation of long-term
    models of Social Security and Medicare, CBO needs continuing
    access to records from the IRS. Specifically, CBO seeks two SSA
    files that contain return information--the Social Security
    Earnings Record and the Master Beneficiary Record. These files
    contain individual earnings data compiled from tax returns
    (Forms W-2), which are protected from disclosure by section
    6103. In addition, CBO may request other records, including
    those matched with survey data.
          The conference agreement amends section 6103 to permit
    the Secretary to furnish to CBO return information to the
    extent such information is necessary for purposes of CBO's
    long-term models of Social Security and Medicare. This
    authority extends to the development, operation, and
    maintenance by CBO of its long-term models of Social Security
    and Medicare. It is the intent of Congress that all requests
    for information made by CBO under this provision be made to the
    Secretary and that the Secretary use his authority under
    section 6103(p)(2) such that the SSA or other agency can
    furnish directly to CBO, for purposes of CBO's long-term models
    of Social Security and Medicare, the files they possess that
    incorporate return information. It is also the intent of
    Congress that the Secretary furnish such other return
    information under this provision as is necessary for purposes
    of CBO's Social Security and Medicare long-term models.
          Under the provision, CBO is subject to the present-law
    safeguard requirements for tax returns and return
    information.\57\ Further, CBO is prohibited from disclosing any
    tax returns and return information received under this
    provision except in a form that cannot be associated with, or
    otherwise identify, directly or indirectly a particular
    taxpayer. Present-law civil and criminal penalties apply to the
    unauthorized disclosure or inspection of tax returns or return
    information.\58\
    ---------------------------------------------------------------------------
          \57\ Sec. 6103(p)(4).
          \58\ See secs. 7431, 7213, and 7213A.
    ---------------------------------------------------------------------------
    Addition of general CBO confidentiality provisions
          The conference agreement adds to the Congressional Budget
    Act of 1974 \59\ additional confidentiality provisions which
    would require CBO to provide the same level of confidentiality
    to data it obtains from other agencies as that to which the
    agencies themselves are subject. Officials and employees of CBO
    would be subject to the same statutory penalties for
    unauthorized disclosure as the employees of the agencies from
    which CBO obtain the data.
    ---------------------------------------------------------------------------
          \59\ 2 U.S.C. sec. 601(d).
    ---------------------------------------------------------------------------

       Subtitle B.--Tax Technical Corrections (secs. 311-319 of the bill)

                                   house bill

          No provision. However, H.R. 5542 includes tax technical
    corrections.\60\ Except as otherwise provided, the technical
    corrections contained in the bill generally are effective as if
    included in the originally enacted related legislation. The
    provisions under the IRS Restructuring Act of 1998 relating to
    innocent spouse and to procedural and administrative issues
    (other than the provision relating to clarification of Tax
    Court authority to issue appealable decisions) are effective
    upon the date of enactment of the bill.
    ---------------------------------------------------------------------------
          \60\ In addition to other tax technical corrections, the bill
    contains the technical corrections contained in H.R. 2488, the
    Financial Freedom Act of 1999 (106th Cong. 1st Sess., reported by the
    House Committee on Ways and Means, H. Rept. 106-238, July 16, 1999,
    393-397), as passed by the House, and S. 1429, the Taxpayer Refund Act
    of 1999 (reported by the Senate Committee on Finance, S. Rept. 106-120,
    July 23, 1999, 221-225), as passed by the Senate. (The technical
    corrections were not included in the conference agreement to H.R. 2488,
    the Taxpayer Refund and Relief Act of 1999 (106th Cong., 1st Sess., H.
    Rept. 106-289, Aug. 4, 1999, 542-543). The Taxpayer Refund and Relief
    Act of 1999 was vetoed by President Clinton.) However, the bill does
    not include the following provisions enacted in other legislation:
    sections 1601(b)(2) and (c) of H.R. 2488 (and section 504(c) of S.
    1429), relating to the Vaccine Trust Fund, which were enacted in the
    ``Ticket to Work and Work Incentives Improvement Act of 1999'' (P.L.
    106-170, sec. 523(b)).
    ---------------------------------------------------------------------------

         Amendments relating to the Ticket to Work and Work Incentives
                            Improvement Act of 1999

          Research credit.--The provision clarifies the anti-double
    dip rule coordinating the research credit (sec. 41) and the
    Puerto Rico economic activity credit (sec. 30A). It is arguable
    that the present-law provisions could be construed so that the
    amount of wages on which a taxpayer could claim the section 30A
    credit is reduced only by the amount of credit claimed under
    section 41, rather than by the amount of wages upon which the
    section 41 credit is based. This result is inconsistent with
    the legislative history of the original provisions. The
    provision deletes the words ``or credit'' after ``deduction''
    in section 280C(c)(1), and adds a new subsection in section 30A
    specifying that wages or other expenses taken into account for
    section 30A may not be taken into account for section 41.
          Taxable REIT subsidiaries.--The provision clarifies that
    a REIT's redetermined rents (described in sec. 857(b)(7)(B))
    that are subject to tax under section 857(b)(7)(A) do not
    include amounts received from a taxable REIT subsidiary that
    would be excluded from unrelated business taxable income (under
    sec. 512(b)(3), relating to certain rents, if received by
    certain types of organizations described in sec. 511(a)(2)).
          Partnership basis adjustments.--The provision provides
    that the rule in the consolidated return regulations (Treas.
    Reg. sec. 1.1502-34) aggregating stock ownership for purposes
    of section 332 (relating to complete liquidation of a
    subsidiary that is a controlled corporation) also applies for
    purposes of section 732(f) (relating to basis adjustments to
    assets of a controlled corporation received in a partnership
    distribution).
    Amendments related to the Tax and Trade Relief Extension Act of 1998
          Exempt organizations.--The provision clarifies that
    nonexempt charitable trusts and nonexempt private foundations
    are subject to the public disclosure requirements of section
    6104(d).
          Capital gains.--The provision clarifies that if (1) a
    charitable remainder trust sold section 1250 property after
    July 28, 1997, and before January 1, 1998, (2) the property was
    held more than one year but not more than 18 months, and (3)
    the capital gain is distributed after December 31, 1997, then
    any capital gain attributable to depreciation will be taxed at
    25 percent (rather than 28 percent). Treasury has published a
    notice (Notice 99-17, 1999-14 I.R.B., April 5, 1999) providing
    that the gain is taxed at 25 percent.
    Amendments related to the Internal Revenue Service Restructuring and
            Reform Act of 1998
                Innocent spouse
          Timing of request for relief.--Confusion currently exists
    as to the appropriate point at which a request for innocent
    spouse relief should be made by the taxpayer and considered by
    the IRS. Some have read the statute to prohibit consideration
    by the IRS of requests for relief until after an assessment has
    been made, i.e., after the examination has been concluded, and
    if challenged, judicially determined. Others have read the
    statute to permit claims for relief from deficiencies to be
    made upon the filing of the return before any preliminary
    determination as to whether a deficiency exists or whether the
    return will be examined. The consideration of innocent spouse
    relief requires that the IRS focus on the particular items
    causing a deficiency; until such items are identified, the IRS
    cannot consider these claims. Congress did not intend that
    taxpayers be prohibited from seeking innocent spouse relief
    until after an assessment has been made; Congress intended the
    proper time to raise and have the IRS consider a claim to be at
    the same point where a deficiency is being considered and
    asserted by the IRS. This is the least disruptive for both the
    taxpayer and the IRS since it allows both to focus on the
    innocent spouse issue while also focusing on the items that
    might cause a deficiency. It also permits every issue,
    including the innocent spouse issue, to be resolved in single
    administrative and judicial process. The bill clarifies the
    intended time by permitting the election under (b) and (c) to
    be made at any point after a deficiency has been asserted by
    the IRS. A deficiency is considered to have been asserted by
    the IRS at the time the IRS states that additional taxes may be
    owed. Most commonly, this occurs during the Examination
    process. It does not require an assessment to have been made,
    nor does it require the exhaustion of administrative remedies
    in order for a taxpayer to be permitted to request innocent
    spouse relief.
          Allowance of refunds.--The current placement in the
    statute of the provision for allowance of refunds may
    inappropriately suggest that the provision applies only to the
    United States Tax Court, whereas it was intended to apply
    administratively and in all courts. The bill clarifies this by
    moving the provision to its own subsection.
          Non-exclusivity of judicial remedy.--Some have suggested
    that the IRS Restructuring Act administrative and judicial
    process for innocent spouse relief was intended to be the
    exclusive avenue by which relief could be sought. The bill
    clarifies Congressional intent that the procedures of section
    6015(e) were intended to be additional, non-exclusive avenues
    by which innocent spouse relief could be considered.
          Time for filing a petition with the Tax Court.--As
    enacted, the time period for seeking a redetermination in the
    Tax Court of innocent spouse relief begins on the date of the
    determination as opposed to the day after the determination.
    This period is one day shorter than that generally applicable
    to petition the Tax Court with respect to a deficiency notice
    (sec. 6213) and the period during which collection activities
    are prohibited and the limitations period is suspended. The
    bill clarifies the computation of this period and conforms it
    to the generally applicable 90-day period for petitioning the
    Tax Court. Conforming amendments are made as to the period for
    which collection activities are prohibited and collection
    limitations suspended.
          Waiver of final determination upon agreement as to
    relief.--Congress intended in enacting section 6015 to provide
    a simple and efficient procedure by which the IRS could
    consider relief, and if relief was denied (in whole or in part)
    and the spouse requesting such relief did not agree with such
    denial, such issue could be considered by the Tax Court.
    Congress did not intend to require a rigid formal process when
    the IRS and the spouse requesting relief agreed on the extent
    of relief to be granted. However, the provisions of section
    6015(e) have been interpreted as requiring the issuance in all
    circumstances of a formal ``Notice of Determination,'' which
    contains a statement of the time period within which a petition
    may be filed with the Tax Court and which delays final
    resolution of the request for relief until the expiration of
    the period for filing a petition with the Tax Court. The
    issuance of the Notice of Determination is confusing to the
    taxpayer when the requested relief was fully granted or when
    the IRS and the taxpayer otherwise agreed on the application of
    the innocent spouse provisions to the taxpayer's case. It also
    may cause unnecessary filings with the Tax Court and delay the
    closing of the case until the time for filing with the Tax
    Court expires.
          Congress has addressed the analogous situation in the
    deficiency context in section 6213(d). In such situations, upon
    written agreement, the IRS may adjust the taxpayer's liability
    as agreed, and no additional formal notice is necessary. The
    bill reflects that an analogous waiver was intended to apply in
    the innocent spouse context. The bill consequently permits
    taxpayers and the IRS to enter into a similar written agreement
    in innocent spouse cases, which allows for the taxpayer's
    liability to be immediately adjusted as agreed, and makes
    unnecessary a formal Notice of Determination or Tax Court
    review. This written agreement is to specify the details of the
    agreement between the IRS and the taxpayer as to the nature and
    extent of innocent spouse relief that will be provided.
    Conforming amendments are made as to the period for which
    collection activities are prohibited and collection limitations
    suspended.
                Procedural and administrative issues
          Disputes involving $50,000 or less.--The provision
    clarifies that the small case procedures of the Tax Court are
    available with respect to innocent spouse disputes and disputes
    continuing from the pre-levy administrative due process
    hearing. The small case procedures provide an accessible forum
    for taxpayers who have small claims with less formal rules of
    evidence and procedure. Use of the procedure is optional to the
    taxpayer, with the concurrence of the Tax Court. In view of the
    recent enactment of the innocent spouse and pre-levy
    administrative due process hearing provisions, it is
    anticipated that the Tax Court will give careful consideration
    to (1) a motion by the Commissioner of Internal Revenue to
    remove the small case designation (as authorized by Rules 172
    and 173 of the Tax Court Rules) when the orderly conduct of the
    work of the Court or the administration of the tax laws would
    be better served by a regular trial of the case, as well as (2)
    the financial impact upon the taxpayer, including additional
    legal fees and costs, of not utilizing small case treatment.
    For example, removing the small case designation may be
    appropriate when a decision in the case will provide a
    precedent for the disposition of a substantial number of other
    cases. It is anticipated that motions by the Commissioner to
    remove the small case designation will be made infrequently.
          Authority to enjoin collection actions.--While a dispute
    is pending under the pre-levy administrative due process
    hearing procedures, levy action is statutorily suspended for
    that period. The Tax Court and district courts are expressly
    granted authority to enjoin improper levy action in general,
    but that authority does not explicitly extend to improper levy
    action that occurs during the period when levy action is
    statutorily suspended under the administrative due process
    provisions. The provision clarifies the ability of the courts
    (including the Tax Court) to enjoin levy during the period that
    levy is required to be suspended with respect to a dispute
    under the pre-levy administrative due process hearing
    procedures.
          Clarification of permissible extension of limitations
    period for installment agreements.--Uncertainty exists as to
    whether the permissible extension of the period of limitations
    in the context of installment agreements is governed by
    reference to an agreement of the parties pursuant to section
    6502 or by reference to the period of time during which the
    installment agreement is in effect pursuant to sections
    6331(k)(3) and (i)(5). The provision clarifies that the
    permissible extension of the period of limitations in the
    context of installment agreements is governed by the pertinent
    provisions of section 6502.
          Clarification of Tax Court authority to issue appealable
    decisions.--The statutory provision for judicial review of a
    dispute concerning the pre-levy administrative due process
    hearing may be unclear as to whether a determination of the Tax
    Court is an appealable decision. The provision clarifies that
    the determination of the Tax Court (other than under the small
    case procedures) in a dispute concerning the pre-levy
    administrative due process hearing is a decision of the Tax
    Court and would be reviewable as such.
                Other issues
          IRS restructuring.--When the Office of the Chief
    Inspector was replaced by the Treasury Inspector General for
    Tax Administration (TIGTA) under the IRS Restructuring and
    Reform Act of 1998, Inspection's responsibilities were assigned
    to the TIGTA. TIGTA personnel are Treasury, rather than IRS,
    personnel. TIGTA personnel still need to make investigative
    disclosures to carry out the duties they took over from
    Inspection and their additional tax administration
    responsibilities. However, section 6103(k)(6) refers only to
    ``internal revenue'' personnel. The provision clarifies that
    section 6103(k)(6) permits TIGTA personnel to make
    investigative disclosures.
          Compliance.--Section 3509 of the IRS Restructuring and
    Reform Act of 1998 expanded the disclosure rules of section
    6110 to also cover Chief Counsel advice (sec. 6110(i)). This is
    a conforming change related to ongoing investigations. The
    provision adds to section 6110(g)(5)(A), after the words
    technical advice memorandum, ``or Chief Counsel advice.''
    Amendments related to the Taxpayer Relief Act of 1997
          Deficiency created by overstatement of refundable child
    credit.--The provision treats the refundable portion of the
    child credit under section 24(d) as part of a ``deficiency.''
    Thus, the usual assessment procedures applicable to income
    taxes will apply to both the nonrefundable and the refundable
    portions of the child credit. (This will reverse the conclusion
    reached by Internal Revenue Service Chief Counsel Memorandum
    199948027 interpreting present law.)
          Roth IRAs.--Code section 3405 provides for withholding
    with respect to designated distributions from certain tax-
    favored arrangements, including IRAs. In general, section
    3405(e)(1)(B)(ii) excludes from the definition of a designated
    distribution the portion of any distribution which it is
    reasonable to believe is excludable from gross income. However,
    all distributions from IRAs are treated as includible in
    income. The exception was consistent with prior law when all
    IRA distributions were taxable, but does not account for the
    tax-free nature of certain Roth IRA distributions. The
    provision extends the exception to Roth IRAs.
          Capital gain election.--The provision provides that an
    election to recognize gain or loss made pursuant to section
    311(e) of the Taxpayer Relief Act of 1997 does not apply to
    assets disposed of in a recognition transaction within one year
    of the date the election would otherwise have been effective.
    Thus, for example, if an asset is sold in 2001, no election may
    be made with respect to that asset. In addition, it is
    clarified that the deemed sale and repurchase by reason of the
    election is not taken into account in applying the wash sales
    rules of section 1091.
          Straight-line depreciation under AMT.--The provision
    clarifies that the Taxpayer Relief Act of 1997 did not change
    the requirement that the straight-line method of depreciation
    be used in computing the alternative minimum tax (``AMT'')
    depreciation allowance for section 1250 property. It is
    arguable that the changes made by that Act could be read as
    inadvertently allowing accelerated depreciation under the AMT
    for section 1250 property which is allowed accelerated
    depreciation under the regular tax.
          Transportation benefits.--Under present law, salary
    reduction amounts are generally treated as compensation for
    purposes of the limits on contributions and benefits under
    qualified plans. In addition, an employer can elect whether or
    not to include such amounts for nondiscrimination testing
    purposes. The IRS Reform Act permitted employers to offer a
    cash option in lieu of qualified transportation benefits. The
    provision treats salary reduction amounts used for qualified
    transportation benefits the same as other salary reduction
    amounts for purposes of defining compensation under the
    qualified plan rules.
          Tax Court jurisdiction.--The Tax Court recently held that
    its jurisdiction pursuant to section 7436 extends only to
    employment status, not to the amount of employment tax in
    dispute (Henry Randolph Consulting v. Comm'r, 112 T.C. #1, Jan.
    6, 1999). The provision provides that the Tax Court also has
    jurisdiction over the amount.
    Amendments related to the Balanced Budget Act of 1997
          Tobacco floor stocks tax.--The provision clarifies that
    the floor stocks taxes imposed on January 1, 2000, and January
    1, 2002, apply only to cigarettes rather than to all tobacco
    products. As enacted, the law could be construed as ambiguous,
    referring to imposition on all tobacco products but imposing
    liability only with respect to cigarettes.
          Tobacco excise tax.--Conforming amendments are provided
    to two provisions to reflect the fact that the tax on cigarette
    papers is not imposed on ``books'' or papers since January 1,
    2000.
          Coordination of trade rules and tobacco excise tax.--
    Clarification is provided that the penalty on reimporting
    cigarettes other than for return to a manufacturer (effective
    January 1, 2000) does not apply to cigarettes re-imported by
    individuals to the extent those cigarettes can be entered into
    the U.S. without duty or tax under the Harmonized Tariff
    Schedule.
    Amendment related to the Small Business Job Protection Act of 1996
          Work opportunity tax credit.--Section 51(d)(2) refers to
    eligibility for the work opportunity tax credit with respect to
    certain welfare recipients without taking into account the
    enactment of the temporary assistance for needy families
    (``TANF'') program. The provisions conform references in the
    work opportunity tax credit to the operation of TANF.
          Electing small business trusts holding S corporation
    stock.--The provision allows an electing small business trust
    (sec. 1361(e)) to have an organization described in section
    170(c)(1) (relating to State and local governments) as a
    beneficiary if the organization holds a contingent interest and
    is not a potential current beneficiary.
          Definition of lump-sum distribution.--Section 1401(b) of
    the Small Business Job Protection Act of 1996 Act repealed 5-
    year averaging for lump-sum distributions. The definition of
    lump-sum distribution was preserved for other provisions,
    primarily those relating to NUA in employer securities. The
    definition was moved from section 402(d)(4)(A) to section
    402(e)(4)(D)(i). This definition included the following
    sentence: ``A distribution of an annuity contract from a trust
    or annuity plan referred to in the first sentence of this
    subparagraph shall be treated as a lump sum distribution.'' The
    provision adds this language back into the definition of lump-
    sum distribution. The sentence is relevant to section
    401(k)(1)(B), which permits certain distributions if made as a
    ``lump-sum distribution.''
          IRAs for nonworking spouses.--Section 1427 of the Small
    Business Job Protection Act of 1996 expanded the IRA deduction
    for nonworking spouses. The maximum permitted IRA contributions
    is generally limited by the individual's earned income.
    However, under present law, it is possible for a nonworking (or
    lesser earning) spouse to make IRA contributions in excess of
    the couple's combined earned income. The following example
    illustrates present law.
          Example: Suppose H and W retire in the middle of January,
    1999. In that year, H earns $1,000 and W earns $500. Both are
    active participants in an employer-sponsored retirement plan.
    Their modified AGI is $60,000. They make no Roth IRA
    contributions. Before application of the income phase-out
    rules, the maximum deductible IRA contribution that H can make
    is $1,000 (sec. 219(b)(1)). After application of the income
    phase-out rule in section 219(g), H's maximum contribution is
    $200, and H contributes that amount to an IRA. Under
    408(o)(2)(B), H can make nondeductible contributions of $800
    ($1,000-$200).
          W's maximum permitted deductible contribution under
    section 219(c)(1)(B), before the income phase-out, is $1,300
    (the sum of H and W's earned income ($1,500), less H's
    deductible IRA contribution ($200)). Under the income phase-
    out, W's deductible contribution is limited to $200, and she
    can make a nondeductible contribution of $1,000 ($1,300-$200).
          The total permitted contributions for H and W are $2,300
    ($1,000 for H plus $1,300 for W). The combined contribution
    should be limited to $1,500, their combined earned income.
          The provision provides that the contributions for the
    spouse with the lesser income cannot exceed the combined earned
    income of the spouses.
    Amendment related to the Revenue Reconciliation Act of 1990
          Qualified tertiary injectant expenses.--The provision
    clarifies that the enhanced oil recovery credit (sec. 43)
    applies with respect to qualified tertiary injectant expenses
    described in section 193(b) that are paid or incurred in
    connection with a qualified enhanced oil recovery project, and
    that are deductible for the taxable year (regardless of the
    provision allowing the deduction). Purchased and self-produced
    injectants are treated the same for purposes of the section 43
    credit.
    Amendments to other Acts (sec. 318 of the bill)
          Insurance.--The legislative history of section 7702A(a)
    (enacted in the Technical and Miscellaneous Revenue Act of
    1988) indicated that if a life insurance contract became a
    modified endowment contract (``MEC''), then the MEC status
    could not be eliminated by exchanging the MEC for another
    contract. Section 7702A(a)(2), however, arguably might be read
    to allow a policyholder to exchange a MEC for a contract that
    does not fail the 7-pay test of section 7702A(b), then exchange
    the second contract for a third contract, which would not
    literally have been received in exchange for a contract that
    failed to meet the 7-pay test. The provision clarifies section
    7702A(a)(2) to correspond to the legislative history, effective
    as if enacted with the Technical and Miscellaneous Revenue Act
    of 1988 (generally, for contracts entered into on or after June
    21, 1988).
          Insurance.--Under section 7702A, if a life insurance
    contract that is not a modified endowment contract is actually
    or deemed exchanged for a new life insurance contract, then the
    7-pay limit under the new contract is first be computed without
    reference to the premium paid using the cash surrender value of
    the old contract, and then would be reduced by \1/7\ of the
    premium paid taking into account the cash surrender value of
    the old contract. For example, if the old contract had a cash
    surrender value of $14,000 and the 7-pay premium on the new
    contract would equal $10,000 per year but for the fact that
    there was an exchange, the 7-pay premium on the new contract
    would equal $8,000 ($10,000-$14,000/7). However, section
    7702A(c)(3)(A) arguably might be read to suggest that if the
    cash surrender value on the new contract was $0 in the first
    two years (due to surrender charges), then the 7-pay premium
    might be $10,000 in this example, unintentionally permitting
    policyholders to engage in a series of ``material changes'' to
    circumvent the premium limitations in section 7702A. The
    provision clarifies section 7702A(c)(3)(A) to refer to the cash
    surrender value of the old contract, effective as if enacted
    with the Technical and Miscellaneous Revenue Act of 1988
    (generally, for contracts entered into on or after June 21,
    1988).
          Worthless securities.--Section 165(g)(3) provides a
    special rule for worthless securities of an affiliated
    corporation. The test for affiliation in section 165(g)(3)(A)
    is the 80-percent vote test for affiliated groups under section
    1504(a) that was in effect prior to 1984. When section 1504(a)
    was amended in the Deficit Reduction Act of 1984 to adopt the
    vote and value test of present law, no corresponding change was
    made to section 165(g)(3)(A), even though the tests had been
    identical until then. The provision conforms the affiliation
    test of section 165(g)(3)(A) to the test in section 1504(a)(2),
    effective for taxable years beginning after December 31, 1984.
          Exception for certain annuities under OID rules.--The
    Deficit Reduction Act of 1984 expanded the prior-law rules for
    inclusion in income of original issue discount (``OID'') on
    debt instruments. That Act provided an exception from the
    definition of a debt instrument for certain annuity contracts,
    including any annuity contract to which section 72 applies and
    that is issued by an insurance company subject to tax under
    subchapter L of the Code (and meets certain other requirements)
    (sec. 1275(a)(1)(B)(ii)). The provision clarifies that an
    annuity contract otherwise meeting the applicable requirements
    also comes within the exception of section 1275(a)(1)(B)(ii) if
    it is issued by an entity described in section 501(c) and
    exempt from tax under section 501(a), that would be subject to
    tax as an insurance company under subchapter L if it were not
    exempt under section 501(a). For example, the provision
    clarifies that an annuity contract otherwise meeting the
    requirements that is issued by a fraternal beneficiary society
    which is exempt from Federal income tax under section 501(a),
    and which is described in section 501(c)(8), comes within the
    exception under section 1275(a)(1)(B)(ii). It is understood
    that charitable gift annuities (as defined in sec. 501(m))
    depend (in whole or in substantial part) on the life expectancy
    of one or more individuals, and thus come within the exception
    under section 1275(a)(1)(B)(i). The provision is effective as
    if included with section 41 of the Deficit Reduction Act of
    1984 (i.e., for taxable years ending after July 18, 1984).
          Losses from section 1256 contracts.--Section 6411 allows
    tentative refunds for NOL carry-backs, business credit
    carrybacks and, for corporations only, capital loss carrybacks.
    Individuals normally cannot carry back a capital loss. However,
    section 1212(c) does allow a carryback of section 1256 losses,
    if elected by the taxpayer. The provision amends section
    6411(a) by including a reference to section 1212(c), effective
    as if included with section 504 of the Economic Recovery Tax
    Act of 1981.
          Highway Trust Fund.--The provision modifies
    administrative procedures of the Highway Trust Fund to conform
    to the 1993 repeal of the special tax rate applicable to
    ethanol prior to 1994. The provision is effective for taxes
    received after the date of enactment. This ensures that
    retroactive adjustments, if any, are not made to the Highway
    Trust Fund.
          Conforming amendment for expenditures from Vaccine Injury
    Compensation Trust Fund.--The provision makes a conforming
    amendment to the expenditure purposes of the Vaccine Injury
    Compensation Trust Fund to enable certain payments to be made
    from the Trust Fund.
    Clerical changes
          The bill makes a number of clerical and typographical
    amendments to the Code.

                                senate amendment

          No provision.

                              Conference Agreement

          The conference agreement follows H.R. 5542.

            TITLE IV.--TAX TREATMENT OF SECURITIES FUTURES CONTRACTS

          (sec. 401 of the bill and secs. 1234B and 1256 of the Code)

                                  present law

    In general
          Generally, gain or loss from the sale of property,
    including stock, is recognized at the time of sale or other
    disposition of the property, unless there is a specific
    statutory provision of nonrecognition (sec. 1001).
          Gains and losses from the sale or exchange of capital
    assets are subject to special rules. In the case of
    individuals, net capital gain is generally subject to a maximum
    tax rate of 20 percent (sec. 1(h)). Net capital gain is the
    excess of net long-term capital gains over net short-term
    capital losses. Also, capital losses are allowed only to the
    extent of capital gains plus, in the case of individuals,
    $3,000 (sec. 1211). Capital losses of individuals may be
    carried forward indefinitely and capital losses of corporations
    may be carried back three years and forward five years (sec.
    1212).
          Generally, in order for gains or losses on a sale or
    exchange of a capital asset to be long-term capital gains or
    losses, the asset must be held for more than one year (sec.
    1222).\61\ A capital asset generally includes all property held
    by the taxpayer except certain enumerated types of property
    such as inventory (sec. 1221).
    ---------------------------------------------------------------------------
          \61\ The holding period for futures transactions in a commodity
    is 6 months. The 6-month holding period does not apply to futures which
    are subject to the mark-to-market rules of section 1256, discussed
    below.
    ---------------------------------------------------------------------------
    Section 1256 contracts
          Special rules apply to ``section 1256 contracts,'' which
    include regulated futures contracts, certain foreign currency
    contracts, nonequity options, and dealer equity options. Each
    section 1256 contract is treated as if it were sold (and
    repurchased) for its fair market value on the last business day
    of the year (i.e., ``marked to market''). Any gain or loss with
    respect to a section 1256 contract which is subject to the
    mark-to-market rule is treated as if 40 percent of the gain or
    loss were short-term capital gain or loss and 60 percent were
    long-term capital gain or loss. This results in a maximum rate
    of 27.84 percent on any gain for taxpayers other than
    corporations. The mark-to-market rule (and the special 60/40
    capital treatment) is inapplicable to hedging transactions.
          A ``regulated futures contract'' is a contract (1) which
    is traded on or subject to the rules of a national securities
    exchange registered with the Securities Exchange Commission, a
    domestic board of trade designated a contract market by the
    Commodities Futures Trading Commission, or similar exchange,
    board of trade, or market, and (2) with respect to which the
    amount required to be deposited and which may be withdrawn
    depends on a system of marking to market.
          A ``dealer equity option'' means, with respect to an
    options dealer, an equity option purchased in the normal course
    of the activity of dealing in options and listed on the
    qualified board or exchange on which the options dealer is
    registered. An equity option is an option to buy or sell stock
    or an option the value of which is determined by reference to
    any stock, group or stocks, or stock index, other than an
    option on certain broad-based groups of stock or stock
    index.\62\ An options dealer is any person who is registered
    with an appropriate national securities exchange as a market
    maker or specialist in listed options, or who the Secretary of
    the Treasury determines performs functions similar to market
    makers and specialists.\63\
    ---------------------------------------------------------------------------
          \62\ Rev. Rul. 94-63, 1994-2 C.B. 188, provides that the
    determination made by the Securities and Exchange Commission will
    determine whether or not an option is ``broad based''.
          \63\ A special rule provides that any gain or loss with respect
    to dealer equity options which are allocable to limited partners or
    limited entrepreneurs are treated as short-term capital gain or loss
    and do not qualify for the 60 percent long-term, 40 percent short-term
    capital gain or loss treatment of section 1256(a)(3).
    ---------------------------------------------------------------------------
    Mark to market accounting for dealers in securities
          Under present law, a dealer in securities must compute
    its income from dealer in securities pursuant to mark-to-market
    of accounting (sec. 475). Gains and losses are treated as
    ordinary income and loss. Traders in securities, and dealers
    and traders in commodities may elect to use this method of
    accounting, including the ordinary income treatment. Section
    1256 contracts are not treated as securities for purposes of
    section 475.\64\
    ---------------------------------------------------------------------------
          \64\ As discussed above, dealers in equity options are subject to
    mark-to-market accounting and the special capital gain rules of section
    1256.
    ---------------------------------------------------------------------------
    Short sales
          In the case of a ``short sale'' (i.e., where the taxpayer
    sells borrowed property and later closes the sale by repaying
    the lender with substantially identical property), any gain or
    loss on the closing transaction is considered gain or loss from
    the sale or exchange of a capital asset if the property used to
    close the short sale is a capital asset in the hands of the
    taxpayer, but the gain is ordinarily treated as short-term gain
    (sec. 1233(a)).
          The Internal Revenue Code (the ``Code'') also contains
    several rules intended to prevent the transformation of short-
    term capital gain into long-term capital gain or long-term
    capital loss into short-term loss by simultaneously holding
    property and selling short substantially identical property
    (sec. 1233(b) and (d)). Under these rules, if taxpayer holds
    property for less than the long-term holding period and sells
    short substantially identical property, any gain or loss upon
    the closing of the short sale is considered short-term capital
    gain, and the holding period of the substantially identical
    property is generally considered to begin on the date of the
    closing of the short sale. Also, if a taxpayer has held
    property for more than the long-term holding period and sells
    short substantially identical property, any loss on the closing
    of the short sale is considered a long-term capital loss.
          For purposes of these short sale rules, property includes
    stock, securities, and commodity futures, but commodity futures
    are not considered substantially identical if they call for
    delivery in different months.
          For purposes of the short-sale rules relating to short-
    term gains, the acquisition of an option to sell at a fixed
    price is treated as a short sale, and the exercise or failure
    to exercise the option is considered a closing of the short
    sale. \65\
    ---------------------------------------------------------------------------
          \65\ An exception applies to an option to sell acquired on the
    same day as the property identified as intended to be used (and is so
    used) in exercising the option is acquired (sec. 1233(c)).
    ---------------------------------------------------------------------------
          The Code also treats a taxpayer as recognizing gain where
    the taxpayer holds appreciated property and enters into a short
    sale of the same or substantially identical property, or enters
    into a contract to sell that same or substantially identical
    property (sec. 1259).
    Wash sales
          The wash-sale rule (sec. 1091) disallows certain losses
    from the disposition of stock or securities if substantially
    identical stock or securities (or an option or contract to
    acquire such property) are acquired by the taxpayer during the
    period beginning 30 days before the date of sale and ending 30
    days after such date of sale. Commodity futures are not treated
    as stock or securities for purposes of this rule. The basis of
    the substantially identical stock or securities is adjusted to
    include the disallowed loss.
          Similar rules apply to disallow any loss realized on the
    closing of a short sale of stock or securities where
    substantially identical stock or securities are sold (or a
    short sale, option or contract to sell is entered into) during
    the applicable period before and after the closing of the short
    sale.
    Straddle rules
          If a taxpayer realizes a loss with respect to a position
    in a straddle, the taxpayer may recognize that loss for the
    taxable year only to the extent that the loss exceeds the
    unrecognized gain (if any) with respect to offsetting positions
    in the straddle (sec. 1092). Disallowed losses are carried
    forward to the succeeding taxable year and are subject to the
    same limitation in that taxable year.
          A ``straddle'' generally refers to offsetting positions
    with respect to actively traded personal property. Positions
    are offsetting if there is a substantial diminution of risk of
    loss from holding one position by reason of holding one or more
    other positions in personal property. A ``position'' in
    personal property is an interest (including a futures or
    forward contract or option) in personal property.
          The straddle rules provide that the Secretary of the
    Treasury may issue regulations applying the short sale holding
    period rules to positions in a straddle. Temporary regulations
    have been issued setting forth the holding period rules
    applicable to positions in a straddle. \66\ To the extent these
    rules apply to a position, the rules in section 1233(b) and (d)
    do not apply.
    ---------------------------------------------------------------------------
          \66\ Reg. sec. 1.1092(b)-2T.
    ---------------------------------------------------------------------------
          The straddle rules generally do not apply to positions in
    stock. However the straddle rules apply if one of the positions
    is stock and at least one of the offsetting positions is either
    (1) an option with respect to stock or (2) a position with
    respect to substantially similar or related property (other
    than stock) as defined in Treasury regulations. Under property
    Treasury regulations, a position with respect to substantially
    similar or related property does not include stock or a short
    sale of stock, but includes any other position with respect to
    substantially similar or related property. \67\
    ---------------------------------------------------------------------------
          \67\ Prop. Reg. sec. 1.1092(d)-2(c).
    ---------------------------------------------------------------------------
          If a straddle consists of both positions that are section
    1256 contracts and positions that are not such contracts, the
    taxpayer may designate the positions as a mixed straddle.
    Positions in a mixed straddle are not subject to the mark-to-
    market rule of section 1256, but instead are subject to rules
    written under regulations to prevent the deferral of tax or the
    conversion of short-term capital gain to long-term capital gain
    or long-term capital loss into short-term capital loss.
    Transactions by a corporation in its own stock
          A corporation does not recognize gain or loss on the
    receipt of money or other property in exchange for its own
    stock. Likewise, a corporation does not recognize gain or loss
    when it redeems its stock with cash, for less or more than it
    received when the stock was issued. In addition, a corporation
    does not recognize gain or loss on any lapse or acquisition or
    an option to buy or sell its stock (sec. 1032).

                                   House Bill

          No provision. However, section 124(c) and (d) of H.R.
    4541 \68\ contained the following provisions:
    ---------------------------------------------------------------------------
          \68\ H.R. 4541 passed the House of Representatives on October 19,
    2000.
    ---------------------------------------------------------------------------
    In general
          Except in the case of dealer securities futures contracts
    described below, securities futures contracts are not treated
    as section 1256 contracts. Thus, holders of these contracts are
    not subject to the mark-to-market rules of section 1256 and are
    not eligible for 60-percent long-term capital gain treatment
    under section 1256. Instead, gain or loss on these contracts
    will be recognized under the general rules relating to the
    disposition of property. \69\
    ---------------------------------------------------------------------------
          \69\ Any securities futures contract which is not a section 1256
    contract will be treated as a ``security'' for purposes of section 475.
    Thus, for example, traders in securities futures contracts
    ---------------------------------------------------------------------------
          A securities futures contract is defined in section
    3(a)(55)(A) of the Securities Exchange Act of 1934, as added by
    the bill. In general, that definition provides that a
    securities futures contract means a contract of sale for future
    delivery of a single security or a narrow-based security index.
    A securities futures contract will not be treated as a
    commodities futures contract for purposes of the Code.
    Treatment of gains and losses
          The bill provides that any gain or loss from the sale or
    exchange of a securities futures contract (other than a dealer
    securities futures contract) will be considered as gain or loss
    from the sale or exchange of property which has the same
    character as the property to which the contract relates has (or
    would have) in the hands of the taxpayer. Thus, if the
    underlying security would be a capital asset in the taxpayer's
    hands, then gain or loss from the sale or exchange of the
    securities futures contract would be capital gain or loss. The
    bill also provides that the termination of a securities futures
    contract which is a capital asset will be treated as a sale or
    exchange of the contract.
          Capital gain treatment will not apply to contracts which
    themselves are not capital assets because of the exceptions to
    the definition of a capital asset relating to inventory (sec.
    1221(a)(1)) or hedging (sec. 1221(a)(7)), or to any income
    derived in connection with a contract which would otherwise be
    treated as ordinary income.
          Except as otherwise provided in regulations under section
    1092(b) (which treats certain losses from a straddle as long-
    term capital losses) and section 1234B, as added by the bill,
    any capital gain or loss from the sale or exchange of a
    securities futures contract to sell property (i.e., the short
    side of a securities futures contract) will be short-term
    capital gain or loss. In other words, a securities futures
    contract to sell property is treated as equivalent to a short
    sale of the underlying property.
    Wash sale rules
          The bill clarifies that, under the ash sale rules, a
    contract or option to acquire or sell stock or securities shall
    include options and contracts that are (or may be) settled in
    cash or property other than the stock or securities to which
    the contract relates. Thus, for example, the acquisition,
    within the period set forth in section 1091, of a securities
    futures contract to acquire stock of a corporation could cause
    the taxpayer's loss on the sale of stock in that corporation to
    be disallowed, notwithstanding that the contract may be settled
    in cash.
    Short sale rules
          In applying the short sale rules, a securities futures
    contract to acquire property will be treated in manner similar
    to the property itself. Thus, for example, the holding of a
    securities futures contract to acquire property and the short
    sale of property which is substantially identical to the
    property under the contract will result in the application of
    the rules of section 1233(b).\70\ In addition, as stated above,
    a securities futures contract to sell is treated in a manner
    similar to a short sale of the property.
    ---------------------------------------------------------------------------
          \70\ Because securities futures contracts are not treated as
    futures contracts with respect to commodities, the rule providing that
    commodity futures are not substantially identical if they call for
    delivery in different months does not apply.
    ---------------------------------------------------------------------------
    Straddle rules
          Stock which is part of a straddle at least one of the
    offsetting positions of which is a securities futures contract
    with respect to the stock or substantially identical stock will
    be subject to the straddle rules of section 1092. Treasury
    regulations under section 1092 applying the principles of the
    section 1233(b) and (d) short sale rules to positions in a
    straddle will also apply.
          For example, assume a taxpayer holds a long-term position
    in actively traded stock (which is a capital asset in the
    taxpayer's hands) and enters into a securities futures contract
    to sell substantially identical stock (at a time when the
    position in the stock has not appreciated in value so that the
    constructive sale rules of section 1259 do not apply). The
    taxpayer has a straddle. Treasury regulations prescribed under
    section 1092(b) applying the principles of section 1233(d) will
    apply, so that any loss on closing the securities futures
    contract will be a long-term capital loss.
    Section 1032
          A corporation will not recognize gain or loss on
    transactions in securities futures contracts with respect to
    its own stock.
    Holding period
          If property is delivered in satisfaction of a securities
    futures contract to acquire property (other than a contract to
    which section 1256 applies), the holding period for the
    property will include the period the taxpayer held the
    contract, provided that the contract was a capital asset in the
    hands of the taxpayer.
    Regulations
          The Secretary of the Treasury or his delegate has the
    authority to prescribe regulations to provide for the proper
    treatment of securities futures contracts under provisions of
    the Internal Revenue Code.
    Dealers in securities futures contracts
          In general, the bill provides that securities futures
    contracts and options on such contracts are not section 1256
    contracts. The bill provides, however, that ``dealer securities
    futures contracts'' will be treated as section 1256 contracts.
          The term `'dealer securities futures contract'' means a
    securities futures contract which is entered into by a dealer
    in the normal course of his or her trade or business activity
    of dealing in such contracts, and is traded on a qualified
    board of trade or exchange. The term also includes any option
    to enter into securities futures contracts purchased or granted
    by a dealer in the normal course of his or her trade or
    business activity of dealing in such options. The determination
    of who is to be treated as a dealer in securities futures
    contracts is to be made by the Secretary of the Treasury or his
    delegate not later than July 1, 2001. Accordingly, the bill
    authorizes the Secretary to treat a person as a dealer in
    securities futures contracts or options on such contracts if
    the Secretary determines that the person performs, with respect
    to such contracts or options, functions similar to an equity
    options dealer, as defined under present law.
          The determination of who is a dealer in securities
    futures contracts is to be made in a manner that is appropriate
    to carry out the purposes of the provision, which generally is
    to provide comparable tax treatment between dealers in
    securities futures contracts, on the one hand, and dealers in
    equity options, on the other. Although traders in securities
    futures contracts (and options on such contracts) may not have
    the same market-making obligations as market makers or
    specialists in equity options, many traders are expected to
    perform analogous functions to such market makers or
    specialists by providing market liquidity for securities
    futures contracts (and options) even in the absence of a legal
    obligation to do so. Accordingly, the absence of market-making
    obligations is not inconsistent with a determination that a
    class of traders are dealers in securities futures contracts
    (and options), if the relevant factors, including providing
    market liquidity for such contracts (and options), indicate
    that the market functions of the traders is comparable to that
    of equity options dealers.
          As in the case of dealer equity options, gains and losses
    allocated to any limited partner or limited entrepreneur with
    respect to a dealer securities futures contract will be treated
    as short-term capital gain or loss.
    Treatment of options under section 1256
          The bill modifies the definition of ``equity option'' for
    purposes of section 1256 to take into account changes made by
    the non-tax provisions of the bill. Only options dealers are
    eligible for section 1256 with respect to equity options. The
    term ``equity option'' is modified to include an option to buy
    or sell stock, or an option the value of which is determined,
    directly or indirectly, by reference to any stock, or any
    ``narrow-based security index,'' as defined in section 3(a)(55)
    of the Securities Exchange Act of 1934 (as modified by the
    bill). An equity option includes an option with respect to a
    group of stocks only if the group meets the requirements for a
    narrow-based security index.
          As under present law, listed options that are not
    ``equity options'' are considered ``nonequity options'' to
    which section 1256 applies for all taxpayers. For example,
    options relating to broad-based groups of stocks and broad
    based stock indexes will continue to be treated as nonequity
    options under section 1256.
    Definition of contract markets
          The non-tax provisions of the bill designate certain new
    contract markets. The new contract markets will be contract
    markets for purposes of the Code, except to the extent provided
    in Treasury regulations.
    Effective Date
          These provisions will take effect on the date of
    enactment of the bill.

                                Senate Amendment

          No provision.

                              Conference Agreement

          The conference agreement follows the tax provisions
    contained in H.R. 4541.

                            TAX COMPLEXITY ANALYSIS

          Section 4022(b) of the Internal Revenue Service Reform
    and Restructuring Act of 1998 (the ``IRS Reform Act'') requires
    the Joint Committee on Taxation (in consultation with the
    Internal Revenue Service and the Department of the Treasury) to
    provide a tax complexity analysis. The complexity analysis is
    required for all legislation reported by the House Committee on
    Ways and Means, the Senate Committee on Finance, or any
    committee of conference if the legislation includes a provision
    that directly or indirectly amends the Internal Revenue Code
    and has widespread applicability to individuals or small
    businesses.
          The staff of the Joint Committee on Taxation has
    determined that a complexity analysis is not required under
    section 4022(b) of the IRS Reform Act because the bill contains
    no provisions that amend the Internal Revenue Code and that
    have ``widespread applicability'' to individuals or small
    businesses.

                NEW MARKETS VENTURE CAPITAL PROGRAM ACT OF 2000

          The conference agreement would enact the provisions of
    H.R. 5663, as introduced on December 14, 2000. The text of that
    bill follows:

      A BILL to provide for community renewal and new markets initiatives

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

    SEC. 101. NEW MARKETS VENTURE CAPITAL PROGRAM.

          (a) Short Title.--This section may be cited as the ``New
    Markets Venture Capital Program Act of 2000''.
          (b) New Markets Venture Capital Program.--Title III of
    the Small Business Investment Act of 1958 (15 U.S.C. 681 et
    seq.) is amended--
                (1) in the heading for the title, by striking
            ``SMALL BUSINESS INVESTMENT COMPANIES'' and inserting
            ``INVESTMENT DIVISION PROGRAMS'';
                (2) by inserting before the heading for section 301
            the following:

                ``PART A--SMALL BUSINESS INVESTMENT COMPANIES'';

            and
                (3) by adding at the end the following:

                 ``PART B--NEW MARKETS VENTURE CAPITAL PROGRAM

    ``SEC. 351. DEFINITIONS.

          ``In this part, the following definitions apply:
                ``(1) Developmental venture capital.--The term
            `developmental venture capital' means capital in the
            form of equity capital investments in businesses made
            with a primary objective of fostering economic
            development in low-income geographic areas. For the
            purposes of this paragraph, the term `equity capital'
            has the same meaning given such term in section
            303(g)(4).
                ``(2) Low-income individual.--The term `low-income
            individual' means an individual whose income (adjusted
            for family size) does not exceed--
                        ``(A) for metropolitan areas, 80 percent of
                    the area median income; and
                        ``(B) for nonmetropolitan areas, the
                    greater of--
                                ``(i) 80 percent of the area median
                            income; or
                                ``(ii) 80 percent of the statewide
                            nonmetropolitan area median income.
                ``(3) Low-income geographic area--the term `low-
            income geographic area' means--
                        ``(A) any population census tract (or in
                    the case of an area that is not tracted for
                    population census tracts, the equivalent county
                    division, as defined by the Bureau of the
                    Census of the Department of Commerce for
                    purposes of defining poverty areas), if--
                                ``(i) the poverty rate for that
                            census tract is not less than 20
                            percent;
                                ``(ii) in the case of a tract--
                                        ``(I) that is located
                                    within a metropolitan area, 50
                                    percent or more of the
                                    households in that census tract
                                    have an income equal to less
                                    than 60 percent of the area
                                    median gross income; or
                                        ``(II) that is not located
                                    within a metropolitan area, the
                                    median household income for
                                    such tract does not exceed 80
                                    percent of the statewide median
                                    household income; or
                                ``(iii) as determined by the
                            Administrator based on objective
                            criteria, a substantial population of
                            low-income individuals reside, an
                            inadequate access to investment capital
                            exists, or other indications of
                            economic distress exist in that census
                            tract; or
                        ``(B) any area located within--
                                ``(i) a HUBZone (as defined in
                            section 3(p) of the Small Business Act
                            and the implementing regulations issued
                            under that section);
                                ``(ii) an urban empowerment zone or
                            urban enterprise community (as
                            designated by the Secretary of Housing
                            and Urban Development); or
                                ``(iii) a rural empowerment zone or
                            rural enterprise community (as
                            designated by the Secretary of
                            Agriculture).
                ``(4) New markets venture capital company.--The
            term `New Markets Venture Capital company' means a
            company that--
                        ``(A) has been granted final approval by
                    the Administrator under section 354(e); and
                        ``(B) has entered into a participation
                    agreement with the Administrator.
                ``(5) Operational assistance.--The term
            `operational assistance' means management, marketing,
            and other technical assistance that assists a small
            business concern with business development.
                ``(6) Participation agreement.--The term
            `participation agreement' means an agreement, between
            the Administrator and a company granted final approval
            under section 354(e), that--
                        ``(A) details the company's operating plan
                    and investment criteria; and
                        ``(B) requires the company to make
                    investments in smaller enterprises at least 80
                    percent of which are located in low-income
                    geographic areas.
                ``(7) Specialized small business investment
            company.--The term `specialized small business
            investment company' means any small business investment
            company that--
                        ``(A) invests solely in small business
                    concerns that contribute to a well-balanced
                    national economy by facilitating ownership in
                    such concerns by persons whose participation in
                    the free enterprise system is hampered because
                    of social or economic disadvantages;
                        ``(B) is organized or chartered under State
                    business or nonprofit corporations statutes, or
                    formed as a limited partnership; and
                        ``(C) was licensed under section 301(d), as
                    in effect before September 30, 1996.
                ``(8) State.--The term `State' means such of the
            several States, the District of Columbia, the
            Commonwealth of Puerto Rico, the Virgin Islands, Guam,
            American Samoa, the Commonwealth of the Northern
            Mariana Islands, and any other commonwealth, territory,
            or possession of the United States;

    ``SEC. 352. PURPOSES.

          ``The purposes of the New Markets Venture Capital Program
    established under this part are--
                ``(1) to promote economic development and the
            creation of wealth and job opportunities in low-income
            geographic areas and among individuals living in such
            areas by encouraging developmental venture capital
            investments in smaller enterprises primarily located in
            such areas; and
                ``(2) to establish a developmental venture capital
            program, with the mission of addressing the unmet
            equity investment needs of small enterprises located in
            low-income geographic areas, to be administered by the
            Administrator--
                        ``(A) to enter into participation
                    agreements with New Markets Venture Capital
                    companies;
                        ``(B) to guarantee debentures of New
                    Markets Venture Capital companies to enable
                    each such company to make developmental venture
                    capital investments in smaller enterprises in
                    low-income geographic areas; and
                        ``(C) to make grants to New Markets Venture
                    Capital companies, and to other entities, for
                    the purpose of providing operational assistance
                    to smaller enterprises financed, or expected to
                    be financed, by such companies.

    ``SEC. 353. ESTABLISHMENT.

          ``In accordance with this part, the Administrator shall
    establish a New Markets Venture Capital Program, under which
    the Administrator may--
                ``(1) enter into participation agreements with
            companies granted final approval under section 354(e)
            for the purposes set forth in section 352;
                ``(2) guarantee the debentures issued by New
            Markets Venture Capital companies as provided in
            section 355; and
                ``(3) make grants to New Markets Venture Capital
            companies, and to other entities, under section 358.

    ``SEC. 354. SELECTION OF NEW MARKETS VENTURE CAPITAL COMPANIES.

          ``(a) Eligibility.--A company shall be eligible to apply
    to participate, as a New Markets Venture Capital company, in
    the program established under this part if--
                ``(1) the company is a newly formed for-profit
            entity or a newly formed for-profit subsidiary of an
            existing entity;
                ``(2) the company has a management team with
            experience in community development financing or
            relevant venture capital financing; and
                ``(3) the company has a primary objective of
            economic development of low-income geographic areas.
          ``(b) Application.--To participate, as a New Markets
    Venture Capital company, in the program established under this
    part a company meeting the eligibility requirements set forth
    in subsection (a) shall submit an application to the
    Administrator that includes--
                ``(1) a business plan describing how the company
            intends to make successful developmental venture
            capital investments in identified low-income geographic
            areas;
                ``(2) information regarding the community
            development finance or relevant venture capital
            qualifications and general reputation of the company's
            management;
                ``(3) a description of how the company intends to
            work with community organizations and to seek to
            address the unmet capital needs of the communities
            served;
                ``(4) a proposal describing how the company intends
            to use the grant funds provided under this part to
            provide operational assistance to smaller enterprises
            financed by the company, including information
            regarding whether the company intends to use licensed
            professionals, when necessary, on the company's staff
            or from an outside entity;
                ``(5) with respect to binding commitments to be
            made to the company under this part, an estimate of the
            ratio of cash to in-kind contributions;
                ``(6) a description of the criteria to be used to
            evaluate whether and to what extent the company meets
            the objectives of the program established under this
            part;
                ``(7) information regarding the management and
            financial strength of any parent firm, affiliated firm,
            or any other firm essential to the success of the
            company's business plan; and
                ``(8) such other information as the Administrator
            may require.
          ``(c) Conditional Approval.--
                ``(1) In general.--From among companies submitting
            applications under subsection (b), the Administrator
            shall, in accordance with this subsection,
            conditionally approval companies to participate in the
            New Markets Venture Capital Program.
                ``(2) Selection criteria.--In selecting companies
            under paragraph (1), the Administrator shall consider
            the following:
                        ``(A) The likelihood that the company will
                    meet the goal of its business plan.
                        ``(B) The experience and background of the
                    company's management team.
                        ``(C) The need for developmental venture
                    capital investments in the geographic areas in
                    which the company intends to invest.
                        ``(D) The extent to which the company will
                    concentrate its activities on serving the
                    geographic areas in which it intends to invest.
                        ``(E) The likelihood that the company will
                    be able to satisfy the conditions under
                    subsection (d).
                        ``(F) The extent to which the activities
                    proposed by the company will expand economic
                    opportunities in the geographic areas in which
                    the company intends to invest.
                        ``(G) The strength of the company's
                    proposal to provide operational assistance
                    under this part as the proposal relates to the
                    ability of the applicant to meet applicable
                    cash requirements and properly utilize in-kind
                    contributions, including the use of resources
                    for the services of licensed professionals,
                    when necessary, whether provided by persons on
                    the company's staff or by persons outside of
                    the company.
                        ``(H) Any other factors deemed appropriate
                    by the Administrator.
                ``(3) Nationwide distribution.--The Administrator
            shall select companies under paragraph (1) in such a
            way that promotes investment nationwide.
          ``(d) Requirements To Be Met for Final Approval.--The
    Administrator shall grant each conditionally approved company a
    period of time, not to exceed 2 years, to satisfy the following
    requirements:
                ``(1) Capital requirement.--Each conditionally
            approved company shall raise not less than $5,000,000
            of private capital or binding capital commitments from
            one or more investors (other than agencies or
            departments of the Federal Government) who met criteria
            established by the Administrator.
                ``(2) Nonadministration resources for operational
            assistance.--
                        ``(A) In general.--In order to provide
                    operational assistance to smaller enterprises
                    expected to be financed by the company, each
                    conditionally approved company--
                                ``(i) shall have binding
                            commitments (for contribution in cash
                            or in kind)--
                                        ``(I) from any sources
                                    other than the Small Business
                                    Administration that meet
                                    criteria established by the
                                    Administrator;
                                        ``(II) payable or available
                                    over a multiyear period
                                    acceptable to the Administrator
                                    (not to exceed 10 years); and
                                        ``(III) in an amount not
                                    less than 30 percent of the
                                    total amount of capital and
                                    commitments raised under
                                    paragraph (1);
                                ``(ii) shall have purchased an
                            annuity--
                                        ``(I) from an insurance
                                    company acceptable to the
                                    Administrator;
                                        ``(II) using funds (other
                                    than the funds raised under
                                    paragraph (1)), from any source
                                    other than the Administrator;
                                    and
                                        ``(III) that yields cash
                                    payments over a multiyear
                                    period acceptable to the
                                    Administrator (not to exceed 10
                                    years) in an amount not less
                                    than 30 percent of the total
                                    amount of capital and
                                    commitments raised under
                                    paragraph (1); or
                                ``(iii) shall have binding
                            commitments (for contributions in cash
                            or in kind) of the type described in
                            clause (i) and shall have purchased an
                            annuity of the type described in clause
                            (ii), which in the aggregate make
                            available, over a multiyear period
                            acceptable to the Administrator (not to
                            exceed 10 years), an amount not less
                            than 30 percent of the total amount of
                            capital and commitments raised under
                            paragraph (1).
                        ``(B) Exception.--The Administrator may, in
                    the discretion of the Administrator and based
                    upon a showing of special circumstances and
                    good cause, consider an applicant to have
                    satisfied the requirements of subparagraph (A)
                    if the applicant has--
                                ``(i) a viable plan that reasonably
                            projects the capacity of the applicant
                            to raise the amount (in cash or in-
                            kind) required under subparagraph (A);
                            and
                                ``(ii) binding commitments in an
                            amount equal to not less than 20
                            percent of the total amount required
                            under paragraph (A).
                        ``(C) Limitation.--In order to comply with
                    the requirements of subparagraphs (A) and (B),
                    the total amount of a company's in-kind
                    contributions may not exceed 50 percent of the
                    company's total contributions.
          ``(e) Final Approval; Designation.--The Administrator
    shall, with respect to each applicant conditionally approved to
    operate as a New Markets Venture Capital company under
    subsection (c), either--
                ``(1) grant final approval to the applicant to
            operate as a New Markets Venture Capital company under
            this part and designate the applicant as such a
            company, if the applicant--
                        ``(A) satisfies the requirements of
                    subsection (d) on or before the expiration of
                    the time period described in that subsection;
                    and
                        ``(B) enters into a participation agreement
                    with the Administrator; or
                ``(2) if the applicant fails to satisfy the
            requirements of subsection (d) on or before the
            expiration of the time period described in that
            subsection, revoke the conditional approval granted
            under that subsection.

    ``SEC. 355. DEBENTURES.

          ``(a) In General.--The Administrator may guarantee the
    timely payment of principal and interest, as scheduled, on
    debentures issued by any New Markets Venture Capital company.
          ``(b) Terms and Conditions.--The Administrator may make
    guarantees under this section on such terms and conditions as
    it deems appropriate, except that the term of any debenture
    guaranteed under this section shall not exceed 15 years.
          ``(c) Full Faith and Credit of the United States.--The
    full faith and credit of the United States is pledged to pay
    all amounts that may be required to be paid under any guarantee
    under this part.
          ``(d) Maximum Guarantee.--
                ``(1) In general.--Under this section, the
            Administrator may guarantee the debentures issued by a
            New Markets Venture Capital company only to the extent
            that the total face amount of outstanding guaranteed
            debentures of such company does not exceed 150 percent
            of the private capital of the company, as determined by
            the Administrator.
                ``(2) Treatment of certain federal funds.--For the
            purposes of paragraph (1), private capital shall
            include capital that is considered to be Federal funds,
            if such capital is contributed by an investor other
            than an agency or department of the Federal Government.

    ``SEC. 356. ISSUANCE AND GUARANTEE OF TRUST CERTIFICATES.

          ``(a) Issuance.--The Administrator may issue trust
    certificates representing ownership of all or a fractional part
    of debentures issued by a New Markets Venture Capital company
    and guaranteed by the Administrator under this part, if such
    certificates are based on and backed by a trust or pool
    approved by the Administrator and composed solely of guaranteed
    debentures.
          ``(b) Guarantee.--
                ``(1) In general.--The Administrator may, under
            such terms and conditions as it deems appropriate,
            guarantee the timely payment of the principal of and
            interest on trust certificates issued by the
            Administrator or its agents for purposes of this
            section.
                ``(2) Limitation.--Each guarantee under this
            subsection shall be limited to the extent of principal
            and interest on the guaranteed debentures that compose
            the trust or pool.
                ``(3) Prepayment or default.--In the event that a
            debenture in a trust or pool is prepaid, or in the
            event of default of such a debenture, the guarantee of
            timely payment of principal and interest on the trust
            certificates shall be reduced in proportion to the
            amount of principal and interest such prepaid debenture
            represents in the trust or pool. Interest on prepaid or
            defaulted debentures shall accrue and be guaranteed by
            the Administrator only through the date of payment of
            the guarantee. At any time during its term, a trust
            certificate may be called for redemption due to
            prepayment or default of all debentures.
          ``(c) Full Faith and Credit of the United States.--The
    full faith and credit of the United States is pledged to pay
    all amounts that may be required to be paid under any guarantee
    of a trust certificate issued by the Administrator or its
    agents under this section.
          ``(d) Fees.--The Administrator shall not collect a fee
    for any guarantee of a trust certificate under this section,
    but any agent of the Administrator may collect a fee approved
    by the Administrator for the functions described in subsection
    (f)(2).
          ``(e) Subrogation and Ownership Rights.--
                ``(1) Subrogation.--In the event the Administrator
            pays a claim under a guarantee issued under this
            section, it shall be subrogated fully to the rights
            satisfied by such payment.
                ``(2) Ownership rights.--No Federal, State, or
            local law shall preclude or limit the exercise by the
            Administrator of its ownership rights in the debentures
            residing in a trust or pool against which trust
            certificates are issued under this section.
          ``(f) Management and Administration.--
                ``(1) Registration.--The Administrator may provide
            for a central registration of all trust certificates
            issued under this section.
                ``(2) Contracting of functions.--
                        ``(A) In general.--The Administrator may
                    contract with an agent or agents to carry out
                    on behalf of the Administrator the pooling and
                    the central registration functions provided for
                    in this section including, notwithstanding any
                    other provision of law--
                                ``(i) maintenance, on behalf of and
                            under the direction of the
                            Administrator, of such commercial bank
                            accounts or investments in obligations
                            of the United States as may be
                            necessary to facilitate the creation of
                            trusts or pools backed by debentures
                            guaranteed under this part; and
                                ``(ii) the issuance of trust
                            certificates to facilitate the creation
                            of such trusts or pools.
                        ``(B) Fidelity bond or insurance
                    requirement.--Any agent performing functions on
                    behalf of the Administrator under this
                    paragraph shall provide a fidelity bond or
                    insurance in such amounts as the Administrator
                    determines to be necessary to fully protect the
                    interests of the United States.
                ``(3) Regulation of brokers and dealers.--The
            Administrator may regulate brokers and dealers in trust
            certificates issued under this section.
                ``(4) Electronic registration.--Nothing in this
            subsection may be construed to prohibit the use of a
            book-entry or other electronic form of registration for
            trust certificates issued under this section.

    ``SEC. 357. FEES.

          ``Except as provided in section 356(d), the Administrator
    may charge such fees as it deems appropriate with respect to
    any guarantee or grant issued under this part.

    ``SEC. 358. OPERATIONAL ASSISTANCE GRANTS.

            ``(a) In General.--
                ``(1) Authority.--In accordance with this section,
            the Administrator may make grants to New Markets
            Venture Capital companies and to other entities, as
            authorized by this part, to provide operational
            assistance to smaller enterprises financed, or expected
            to be financed, by such companies or other entities.
                ``(2) Terms.--Grants made under this subsection
            shall be made over a multiyear period not to exceed 10
            years, under such other terms as the Administrator may
            require.
                ``(3) Grants to specialized small business
            investment companies.--
                        ``(A) Authority.--In accordance with this
                    section, the Administrator may make grants to
                    specialized small business investment companies
                    to provide operational assistance to smaller
                    enterprises financed, or expected to be
                    financed, by such companies after the effective
                    date of the New Markets Venture Capital Program
                    Act of 2000.
                        ``(B) Use of funds.--The proceeds of a
                    grant made under this paragraph may be used by
                    the company receiving such grant only to
                    provide operational assistance in connection
                    with an equity investment (made with capital
                    raised after the effective date of the New
                    Markets Venture Capital Program Act of 2000) in
                    a business located in a low-income geographic
                    area.
                        ``(C) Submission of plans.--A specialized
                    small business investment company shall be
                    eligible for a grant under this section only if
                    the company submits to the Administrator, in
                    such form and manner as the Administrator may
                    require, a plan for use of the grant.
                ``(4) Grant amount.--
                        ``(A) New markets venture capital
                    companies.--The amount of a grant made under
                    this subsection to a New Markets Venture
                    Capital company shall be equal to the resources
                    (in cash or in kind) raised by the company
                    under section 354(d)(2).
                        ``(B) Other entities.--The amount of a
                    grant made under this subsection to any entity
                    other than a New Markets Venture Capital
                    company shall be equal to the resources (in
                    cash or in kind) raised by the entity in
                    accordance with the requirements applicable to
                    New Markets Venture Capital companies set forth
                    in section 354(d)(2).
                ``(5) Pro rata reductions.--If the amount made
            available to carry out this section is insufficient for
            the Administrator to provide grants in the amounts
            provided for in paragraph (4), the Administrator shall
            make pro rata reductions in the amounts otherwise
            payable to each company and entity under such
            paragraph.
          ``(b) Supplemental Grants.--
                ``(1) In general.--The Administrator may make
            supplemental grants to New Markets Venture Capital
            companies and to other entities, as authorized by this
            part under such terms as the Administrator may require,
            to provide additional operational assistance to smaller
            enterprises financed, or expected to be financed, by
            the companies.
                ``(2) Matching requirement.--The Administrator may
            require, as a condition of any supplemental grant made
            under this subsection, that the company or entity
            receiving the grant provide from resources (in cash or
            in kind), other then those provided by the
            Administrator, a matching contribution equal to the
            amount of the supplemental grant.
        ``(c) Limitation.--None of the assistance made available
    under this section may be used for any overhead or general and
    administrative expense of a New Markets Venture Capital company
    or a specialized small business investment company.

    ``SEC. 359. BANK PARTICIPATION.

          ``(a) In General.--Except as provided in subsection (b),
    any national bank, any member bank of the Federal Reserve
    System, and (to the extent permitted under applicable State
    law) any insured bank that is not a member of such system, may
    invest in any New Markets Venture Capital company, or in any
    entity established to invest solely in New Markets Venture
    Capital companies.
          ``(b) Limitation.--No bank described in subsection (a)
    may make investments described in such subsection that are
    greater than 5 percent of the capital and surplus of the bank.

    ``SEC. 360. FEDERAL FINANCING BANK.

          ``Section 318 shall not apply to any debenture issued by
    a New Markets Venture Capital company under this part.

    ``SEC. 361. REPORTING REQUIREMENTS.

          ``Each New Markets Venture Capital company that
    participates in the program established under this part shall
    provide to the Administrator such information as the
    Administrator may require, including--
                ``(1) information related to the measurement
            criteria that the company proposed in its program
            application; and
                ``(2) in each case in which the company under this
            part makes an investment in, or a loan or grant to, a
            business that is not located in a low-income geographic
            area, a report on the number and percentage of
            employees of the business who reside in such areas.

    ``SEC. 362. EXAMINATIONS.

          ``(a) In General.--Each New Markets Venture Capital
    company that participates in the program established under this
    part shall be subject to examinations made at the direction of
    the Investment Division of the Small Business Administration in
    accordance with this section.
          ``(b) Assistance of Private Sector Entities.--
    Examinations under this section may be conducted with the
    assistance of a private sector entity that has both the
    qualifications and the expertise necessary to conduct such
    examinations.
          ``(c) Costs.--
                ``(1) Assessment.--
                        ``(A) In general.--The Administrator may
                    assess the cost of examinations under this
                    section, including compensation of the
                    examiners, against the company examined.
                        ``(B) Payment.--Any company against which
                    the Administrator assesses costs under this
                    paragraph shall pay such costs.
                ``(2)Deposit of funds.--Funds collected under this
            section shall be deposited in the account for salaries
            and expenses of the Small Business Administration.

    ``SEC. 363. INJUNCTIONS AND OTHER ORDERS.

          ``(a) In General.--Whenever, in the judgment of the
    Administrator, a New Markets Venture Capital company or any
    other person has engaged or is about to engage in any acts or
    practices which constitute or will constitute a violation of
    any provision of this Act, or of any rule or regulation under
    this Act, or of any order issued under this Act, the
    Administrator may make application to the proper district court
    of the United States or a United States court of any place
    subject to the jurisdiction of the United States for an order
    enjoining such acts or practices, or for an order enforcing
    compliance with such provision, rule, regulation, or order, and
    such courts shall have jurisdiction of such actions and, upon a
    showing by the Administrator that such New Markets Venture
    Capital company or other person has engaged or is about to
    engage in any such acts or practices, a permanent or temporary
    injunction, restraining order, or other order, shall be granted
    without bond.
          ``(b) Jurisdiction.--In any proceeding under subsection
    (a), the court as a court of equity may, to such extent as it
    deems necessary, take exclusive jurisdiction of the New Market
    Venture Capital company and the assets thereof, wherever
    located, and the court shall have jurisdiction in any such
    proceeding to appoint a trustee or receiver to hold or
    administer under the direction of the court the assets so
    possessed.
          ``(c) Administrator as Trustee or Receiver.--
                ``(1) Authority.--The Administrator may act as
            trustee or receiver of a New Markets Venture Capital
            company.
                ``(2) Appointment.--Upon request of the
            Administrator, the court may appoint the Administrator
            to act as a trustee or receiver of a New Markets
            Venture Capital company unless the court deems such
            appointment inequitable or otherwise inappropriate by
            reason of the special circumstances involved.

    ``SEC. 364. ADDITIONAL PENALTIES FOR NONCOMPLIANCE.

          ``(a) In General.--With respect to any New Markets
    Venture Capital company that violates or fails to comply with
    any of the provisions of this Act, of any regulation issued
    under this Act, or of any participation agreement entered into
    under this Act, the Administrator may in accordance with this
    section--
                ``(1) void the participation agreement between the
            Administrator and the company; and
                ``(2) cause the company to forfeit all of the
            rights and privileges derived by the company from this
            Act.
          ``(b) Adjudication of Noncompliance.--
                ``(1) In general.--Before the Administrator may
            cause a New Markets Venture Capital company to forfeit
            rights or privileges under subsection (a), a court of
            the United States of competent jurisdiction must find
            that the company committed a violation, or failed to
            comply, in a cause of action brought for that purpose
            in the district, territory, or other place subject to
            the jurisdiction of the United States, in which the
            principal office of the company is located.
                ``(2) Parties authorized to file causes of
            action.--Each cause of action brought by the United
            States under this subsection shall be brought by the
            Administrator or by the Attorney General.

    ``SEC. 365. UNLAWFUL ACTS AND OMISSIONS; BREACH OF FIDUCIARY DUTY.

          ``(a) Parties Deemed To Commit a Violation.--Whenever any
    New Markets Venture Capital company violates any provision of
    this Act, of a regulation issued under this Act, or of a
    participation agreement entered into under this Act, by reason
    of its failure to comply with its terms or by reason of its
    engaging in any act or practice that constitutes or will
    constitute a violation thereof, such violation shall also be
    deemed to be a violation and an unlawful act committed by any
    person who, directly or indirectly, authorizes, orders,
    participates in, causes, brings about, counsels, aids, or abets
    in the commission of any acts, practices, or transactions that
    constitute or will constitute, in whole or in part, such
    violation.
          ``(b) Fiduciary Duties.--It shall be unlawful for any
    officer, director, employee, agent, or other participant in the
    management or conduct of the affairs of a New Markets Venture
    Capital company to engage in any act or practice, or to omit
    any act or practice, in breach of the person's fiduciary duty
    as such officer, director, employee, agent, or participant if,
    as a result thereof, the company suffers or is in imminent
    danger of suffering financial loss or other damage.
          ``(c) Unlawful Acts.--Except with the written consent of
    the Administrator, it shall be unlawful--
                ``(1) for any person to take office as an officer,
            director, or employee of any New Markets Venture
            Capital company, or to become an agent or participant
            in the conduct of the affairs or management of such a
            company, if the person--
                        ``(A) has been convicted of a felony, or
                    any other criminal offense involving dishonesty
                    or breach of trust, or
                        ``(B) has been found civilly liable in
                    damages, or has been permanently or temporarily
                    enjoined by an order, judgment, or decree of a
                    court of competent jurisdiction, by reason of
                    any act or practice involving fraud, or breach
                    of trust; and
                ``(2) for any person continue to serve in any of
            the capacities described in paragraph (1), if--
                        ``(A) the person is convicted of a felony,
                    or any other criminal offense involving
                    dishonesty or breach of trust, or
                        ``(B) the person is found civilly liable in
                    damages, or is permanently or temporarily
                    enjoined by an order, judgment, or decree of a
                    court of competent jurisdiction, by reason of
                    any act or practice involving fraud or breach
                    of trust.

    ``SEC. 366. REMOVAL OR SUSPENSION OF DIRECTORS OR OFFICERS.

          ``Using the procedures for removing or suspending a
    director or an officer of a licensee set forth in section 313
    (to the extent such procedures are not inconsistent with the
    requirements of this part), the Administrator may remove or
    suspend any director or officer of any New Markets Venture
    Capital company.

    ``SEC. 367. REGULATIONS.

          ``The Administrator may issue such regulations as it
    deems necessary to carry out the provisions of this part in
    accordance with its purposes.

    ``SEC. 368. AUTHORIZATIONS OF APPROPRIATIONS.

          ``(a) In General.--There are authorized to be
    appropriated for fiscal years 2001 through 2006, to remain
    available until expended, the following sums:
                ``(1) Such subsidy budget authority as may be
            necessary to guarantee $150,000,000 of debentures under
            this part.
                ``(2) $30,000,000 to make grants under this part.
        ``(b) Funds Collected for Examinations.--Funds deposited
    under section 362(c)(2) are authorized to be appropriated only
    for the costs of examinations under section 362 and for the
    costs of other oversight activities with respect to the program
    established under this part.''
        (c) Conforming Amendment.--Section 20(e)(1)(C) of the Small
    Business Act (15 U.S.C. 631 note) is amended by inserting
    ``part A of'' before ``title III''.
          (d) Calculation of Maximum Amount of SBIC Leverage.--
                (1) Maximum leverage.--Section 303(b)(2) of the
            Small Business Investment Act of 1958 (15 U.S.C.
            683(b)(2)) is amended to read as follows:
                ``(2) Maximum leverage.--
                        ``(A) In general.--After March 31, 1993,
                    the maximum amount of outstanding leverage made
                    available to a company licensed under section
                    301(c) of this Act shall be determined by the
                    amount of such company's private capital--
                                ``(i) if the company has private
                            capital of not more than $15,000,000,
                            the total amount of leverage shall not
                            exceed 300 percent of private capital;
                                ``(ii) if the company has private
                            capital of more than $15,000,000 but
                            not more than $30,000,000, the total
                            amount of leverage shall not exceed
                            $45,000,000 plus 200 percent of the
                            amount of private capital over
                            $15,000,000; and
                                ``(iii) if the company has private
                            capital of more than $30,000,000, the
                            total amount of leverage shall not
                            exceed $75,000,000 plus 100 percent of
                            the amount of private capital over
                            $30,000,000 but not to exceed an
                            additional $15,000,000.
                        ``(B) Adjustments.--
                                ``(i) In general.--The dollar
                            amounts in clauses (i), (ii), and (iii)
                            of subparagraph (A) shall be adjusted
                            annually to reflect increases in the
                            Consumer Price Index established by the
                            Bureau of Labor Statistics of the
                            Department of Labor.
                                ``(ii) Initial adjustments.--The
                            initial adjustments made under this
                            subparagraph after the date of the
                            enactment of the Small Business
                            Reauthorization Act of 1937 shall
                            reflect only increases from March 31,
                            1993.
                        ``(C) Investments in low-income geographic
                    areas.--In calculating the outstanding leverage
                    of a company for the purposes of subparagraph
                    (A), the Administrator shall not include the
                    amount of the cost basis of any equity
                    investment made by the company in a smaller
                    enterprise located in a low-income geographic
                    area (as defined in section 351), to the extent
                    that the total of such amounts does not exceed
                    50 percent of the company's private capital.''.
                 (2) Maximum aggregate leverage.--Section 303(b)(4)
            of the Small Business Investment Act of 1958 (15 U.S.C.
            683(b)(4)) is amended by adding at the end the
            following new subparagraph:
                        ``(D) Investments in low-income geographic
                    areas.--In calculating the aggregate
                    outstanding leverage of a company for the
                    purposes of subparagraph (A), the Administrator
                    shall not include the amount of the cost basis
                    of any equity investment made by the company in
                    a smaller enterprise located in a low-income
                    geographic area (as defined in section 351), to
                    the extent that the total of such amounts does
                    not exceed 50 percent of the company's private
                    capital.''
          (e) Bankruptcy Exemption for New Markets Venture Capital
    Companies.--Section 109(b)(2) of title 11, United States Code,
    is amended by inserting ``a New Markets Venture Capital company
    as defined in section 351 of the Small Business Investment Act
    of 1958,'' after ``homestead association,''.
          (f) Federal Savings Associations.--Section 5(c)(4) of the
    Home Owners' Loan Act (12 U.S.C. 1464(c)(4)) is amended by
    adding at the end the following:
                        ``(F) New markets venture capital
                    companies.--A Federal savings association may
                    invest in stock, obligations, or other
                    securities of any New Markets Venture Capital
                    company as defined in section 351 of the Small
                    Business Investment Act of 1958, except that a
                    Federal savings association may not make any
                    investment under this subparagraph if its
                    aggregate outstanding investment under this
                    subparagraph would exceed 5 percent of the
                    capital and surplus of such savings
                    association.''.

    SEC. 102. BUSINESSLINC GRANTS AND COOPERATIVE AGREEMENTS.

          Section 8 of the Small Business Act (15 U.S.C. 637) is
    amended by adding at the end the following:
          ``(n) Business Grants and Cooperative Agreements.--
                ``(1) In general.--In accordance with this
            subsection, the Administrator may make grants to and
            enter into cooperative agreements with any coalition of
            private entities, public entities, or any combination
            of private and public entities--
                        ``(A) to expand business-to-business
                    relationships between large and small
                    businesses; and
                        ``(B) to provide businesses, directly or
                    indirectly, with online information and a
                    database of companies that are interested in
                    mentor-protege programs or community-based,
                    statewide, or local business development
                    programs.
                ``(2) Matching requirement.--Subject to
            subparagraph (B), the Administrator may make a grant to
            a coalition under paragraph (1) only if the coalition
            provides for activities described in paragraph (1)(A)
            or (1)(B) an amount, either in kind or in cash, equal
            to the grant amount.
                ``(3) Authorization of appropriations.--There is
            authorized to be appropriated to carry out this
            subsection $6,600,000, to remain available until
            expended, for each of fiscal years 2001 through
            2006.''.

                   Small Business Reauthorization Act of 2000

          The conference agreement would enact the provisions of
    H.R. 5667, as introduced on December 15, 2000. The text of that
    bill follows:

    A Bill To provide for reauthorization of small business loan and other
                        programs, and for other purposes

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

    SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

        (a) Short Title.--This Act may be cited as the ``Small
    Business Reauthorization Act of 2000''.
        (b) Table of Contents.--The table of contents for this Act
    is as follows:

    Sec. 1. Short title; table of contents.

               TITLE I--SMALL BUSINESS INNOVATION RESEARCH PROGRAM

    Sec. 101. Short title.
    Sec. 102. Findings.
    Sec. 103. Extension of SBIR program.
    Sec. 104. Annual report.
    Sec. 105. Third phase assistance.
    Sec. 106. Report on programs for annual performance plan.
    Sec. 107. Output and outcome data.
    Sec. 108. National Research Council reports.
    Sec. 109. Federal agency expenditures for the SBIR program.
    Sec. 110. Policy directive modifications.
    Sec. 111. Federal and State technology partnership program.
    Sec. 112. Mentoring networks.
    Sec. 113. Simplified reporting requirements.
    Sec. 114. Rural outreach program extension.

                        TITLE II--BUSINESS LOAN PROGRAMS

    Sec. 201. Short title.
    Sec. 202. Levels of participation.
    Sec. 203. Loan amounts.
    Sec. 204. Interest on defaulted loans.
    Sec. 205. Prepayment of loans.
    Sec. 206. Guarantee fees.
    Sec. 207. Lease terms.
    Sec. 208. Appraisals for loans secured by real property.
    Sec. 209. Sale of guaranteed loans made for export purposes.
    Sec. 210. Microloan program.

                TITLE III--CERTIFIED DEVELOPMENT COMPANY PROGRAM

    Sec. 301. Short title.
    Sec. 302. Women-owned businesses.
    Sec. 303. Maximum debenture size.
    Sec. 304. Fees.
    Sec. 305. Premier certified lenders program.
    Sec. 306. Sale of certain defaulted loans.
    Sec. 307. Loan liquidation.

       TITLE IV--CORRECTIONS TO THE SMALL BUSINESS INVESTMENT ACT OF 1958

    Sec. 401. Short title.
    Sec. 402. Definitions.
    Sec. 403. Investment in small business investment companies.
    Sec. 404. Subsidy fees.
    Sec. 405. Distributions.
    Sec. 406. Conforming amendment.

               TITLE V--REAUTHORIZATION OF SMALL BUSINESS PROGRAMS

    Sec. 501. Short title.
    Sec. 502. Reauthorization of small business programs.
    Sec. 503. Additional reauthorizations.
    Sec. 504. Cosponsorship.

                            TITLE VI--HUBZONE PROGRAM

                     Subtitle A--HUBZones in Native America

    Sec. 601. Short title.
    Sec. 602. HUBZone small business concern.
    Sec. 603. Qualified HUBZone small business concern.
    Sec. 604. Other definitions.

                      Subtitle B--Other HUBZone Provisions

    Sec. 611. Definitions.
    Sec. 612. Eligible contracts.
    Sec. 613. HUBZone redesignated areas.
    Sec. 614. Community development.
    Sec. 615. Reference corrections.

          TITLE VII--NATIONAL WOMEN'S BUSINESS COUNCIL REAUTHORIZATION

    Sec. 701. Short title.
    Sec. 702. Membership of the Council.
    Sec. 703. Repeal of procurement project.
    Sec. 704. Studies and other research.
    Sec. 705. Authorization of appropriations.

                      TITLE VIII--MISCELLANEOUS PROVISIONS

    Sec. 801. Loan application processing.
    Sec. 802. Application of ownership requirements.
    Sec. 803. Subcontracting preference for veterans.
    Sec. 804. Small Business Development Center Program funding.
    Sec. 805. Surety bonds.
    Sec. 806. Size standards.
    Sec. 807. Native Hawaiian organizations under section 8(a).
    Sec. 808. National Veterans Business Development Corporation correction.
    Sec. 809. Private sector resources for SCORE.
    Sec. 810. Contract data collection.
    Sec. 811. Procurement program for women-owned small business concerns.

              TITLE I--SMALL BUSINESS INNOVATION RESEARCH PROGRAM

    SECTION 101. SHORT TITLE.

        (a) Short Title.--This title may be cited as the ``Small
    Business Innovation Research Program Reauthorization Act of
    2000''.

    SEC. 102. FINDINGS.

        Congress finds that--
                (1) the small business innovation research program
            established under the Small Business Innovation
            Development Act of 1982, and reauthorized by the Small
            Business Research and Development Enhancement Act of
            1992 (in this title referred to as the ``SBIR
            program'') is highly successful in involving small
            businesses in federally funded research and
            development;
                (2) the SBIR program made the cost-effective and
            unique research and development capabilities possessed
            by the small businesses of the Nation available to
            Federal agencies and departments;
                (3) the innovative goods and services developed by
            small businesses that participated in the SBIR program
            have produced innovations of critical importance in a
            wide variety of high-technology fields, including
            biology, medicine, education, and defense;
                (4) the SBIR program is a catalyst in the promotion
            of research and development, the commercialization of
            innovative technology, the development of new products
            and services, and the continued excellence of this
            Nation's high-technology industries; and
                (5) the continuation of the SBIR program will
            provide expanded opportunities for one of the Nation's
            vital resources, its small businesses, will foster
            invention, research, and technology, will create jobs,
            and will increase this Nation's competitiveness in
            international markets.

    SEC. 103. EXTENSION OF SBIR PROGRAM.

        Section 9(m) of the Small Business Act (15 U.S.C. 638(m))
    is amended to read as follows:
        ``(m) Termination.--The authorization to carry out the
    Small Business Innovation Research Program established under
    this section shall terminate on September 30, 2008.''.

    SEC. 104. ANNUAL REPORT.

        Section 9(b)(7) of the Small Business Act (15 U.S.C.
    638(b)(7)) is amended by striking ``and the Committee on Small
    Business of the House of Representatives'' and inserting ``,
    and to the Committee on Science and the Committee on Small
    Business of the House of Representatives,''.

    SEC. 105. THIRD PHASE ASSISTANCE.

        Section 9(e)(4)(C)(i) of the Small Business Act (15 U.S.C.
    638(e)(4)(C)(i)) is amended by striking ``; and'' and inserting
    ``; or''.

    SEC. 106. REPORT ON PROGRAMS FOR ANNUAL PERFORMANCE PLAN.

        Section 9(g) of the Small Business Act (15 U.S.C. 638(g))
    is amended--
                (1) in paragraph (7), by striking ``and'' at the
            end;
                (2) in paragraph (8), by striking the period at the
            end and inserting a semicolon; and
                (3) by adding at the end the following:
                ``(9) include, as part of its annual performance
            plan as required by subsections (a) and (b) of section
            1115 of title 31, United States Code, a section on its
            SBIR program, and shall submit such section to the
            Committee on Small Business of the Senate, and the
            Committee on Science and the Committee on Small
            Business of the House of Representatives; and''.

    SEC. 107. OUTPUT AND OUTCOME DATA.

        (a) Collection.--Section 9(g) of the Small Business Act (15
    U.S.C. 638(g)), as amended by section 106 of this Act, is
    further amended by adding at the end the following:
                ``(10) collect, and maintain in a common format in
            accordance with subsection (v), such information from
            awardees as is necessary to assess the SBIR program,
            including information necessary to maintain the
            database described in subsection (k).''.
        (b) Report to Congress.--Section 9(b)(7) of the Small
    Business Act (15 U.S.C. 638(b)(7)), as amended by section 104
    of this Act, is further amended by inserting before the period
    at the end ``, including the data on output and outcomes
    collected pursuant to subsections (g)(10) and (o)(9), and a
    description of the extent to which Federal agencies are
    providing in a timely manner information needed to maintain the
    database described in subsection (k)''.
        (c) Database.--Section 9(k) of the Small Business Act (15
    U.S.C. 638(k)) is amended to read as follows:
        ``(k) Database.--
                ``(1) Public database.--Not later than 180 days
            after the date of enactment of the Small Business
            Innovation Research Program Reauthorization Act of
            2000, the Administrator shall develop, maintain, and
            make available to the public a searchable, up-to-date,
            electronic database that includes--
                        ``(A) the name, size, location, and an
                    identifying number assigned by the
                    Administrator, of each small business concern
                    that has received a first phase or second phase
                    SBIR award from a Federal agency;
                        ``(B) a description of each first phase or
                    second phase SBIR award received by that small
                    business concern, including--
                                ``(i) an abstract of the project
                            funded by the award, excluding any
                            proprietary information so identified
                            by the small business concern;
                                ``(ii) the Federal agency making
                            the award; and
                                ``(iii) the date and amount of the
                            award;
                        ``(C) an identification of any business
                    concern or subsidiary established for the
                    commercial application of a product or service
                    for which an SBIR award is made; and
                        ``(D) information regarding mentors and
                    Mentoring Networks, as required by section
                    35(d).
                ``(2) Government database.--Not later than 180 days
            after the date of enactment of the Small Business
            Innovation Research Program Reauthorization Act of
            2000, the Administrator, in consultation with Federal
            agencies required to have an SBIR program pursuant to
            subsection (f)(1), shall develop and maintain a
            database to be used solely for SBIR program evaluation
            that--
                        ``(A) contains for each second phase award
                    made by a Federal agency--
                                ``(i) information collected in
                            accordance with paragraph (3) on
                            revenue from the sale of new products
                            or services resulting from the research
                            conducted under the award;
                                ``(ii) information collected in
                            accordance with paragraph (3) on
                            additional investment from any source,
                            other than first phase or second phase
                            SBIR or STTR awards, to further the
                            research and development conducted
                            under the award; and
                                ``(iii) any other information
                            received in connection with the award
                            that the Administrator, in conjunction
                            with the SBIR program managers of
                            Federal agencies, considers relevant
                            and appropriate;
                        ``(B) includes any narrative information
                    that a small business concern receiving a
                    second phase award voluntarily submits to
                    further describe the outputs and outcomes of
                    its awards;
                        ``(C) includes for each applicant for a
                    first phase or second phase award that does not
                    receive such an award--
                                ``(i) the name, size, and location,
                            and an identifying number assigned by
                            the Administration;
                                ``(ii) an abstract of the project;
                            and
                                ``(iii) the Federal agency to which
                            the application was made;
                        ``(D) includes any other data collected by
                    or available to any Federal agency that such
                    agency considers may be useful for SBIR program
                    evaluation; and
                        ``(E) is available for use solely for
                    program evaluation purposes by the Federal
                    Government or, in accordance with policy
                    directives issued by the Administration, by
                    other authorized persons who are subject to a
                    use and nondisclosure agreement with the
                    Federal Government covering the use of the
                    database.
                ``(3) Updating information for database.--
                        ``(A) In general.--A small business concern
                    applying for a second phase award under this
                    section shall be required to update information
                    in the database established under this
                    subsection for any prior second phase award
                    received by that small business concern. In
                    complying with this paragraph, a small business
                    concern may apportion sales or additional
                    investment information relating to more than
                    one second phase award among those awards, if
                    it notes the apportionment for each award.
                        ``(B) Annual updates upon termination.--A
                    small business concern receiving a second phase
                    award under this section shall--
                                ``(i) update information in the
                            database concerning that award at the
                            termination of the award period; and
                                ``(ii) be requested to voluntarily
                            update such information annually
                            thereafter for a period of 5 years.
                ``(4) Protection of information.--Information
            provided under paragraph (2) shall be considered
            privileged and confidential and not subject to
            disclosure pursuant to section 552 of title 5, United
            States Code.
                ``(5) Rule of construction.--Inclusion of
            information in the database under this subsection shall
            not be considered to be publication for purposes of
            subsection (a) or (b) of section 102 of title 35,
            United States Code.''.

    SEC. 108. NATIONAL RESEARCH COUNCIL REPORTS.

        (a) Study and Recommendations.--The head of each agency
    with a budget of more than $50,000,000 for its SBIR program for
    fiscal year 1999, in consultation with the Small Business
    Administration, shall, not later than 6 months after the date
    of enactment of this Act, cooperatively enter into an agreement
    with the National Academy of Sciences for the National Research
    Council to--
                (1) conduct a comprehensive study of how the SBIR
            program has stimulated technological innovation and
            used small businesses to meet Federal research and
            development needs, including--
                        (A) a review of the value to the Federal
                    research agencies of the research projects
                    being conducted under the SBIR program, and of
                    the quality of research being conducted by
                    small businesses participating under the
                    program, including a comparison of the value of
                    projects conducted under the SBIR program to
                    those funded by other Federal research and
                    development expenditures;
                        (B) to the extent practicable, an
                    evaluation of the economic benefits achieved by
                    the SBIR program, including the economic rate
                    of return, and a comparison of the economic
                    benefits, including the economic rate of
                    return, achieved by the SBIR program with the
                    economic benefits, including the economic rate
                    of return, of other Federal research and
                    development expenditures;
                        (C) an evaluation of the noneconomic
                    benefits achieved by the SBIR program over the
                    life of the program;
                        (D) a comparison of the allocation for
                    fiscal year 2000 of Federal research and
                    development funds to small businesses with such
                    allocation for fiscal year 1983, and an
                    analysis of the factors that have contributed
                    to such allocation; and
                        (E) an analysis of whether Federal
                    agencies, in fulfilling their procurement
                    needs, are making sufficient effort to use
                    small businesses that have completed a second
                    phase award under the SBIR program; and
                (2) make recommendations with respect to--
                        (A) measures of outcomes for strategic
                    plans submitted under section 306 of title 5,
                    United States Code, and performance plans
                    submitted under section 1115 of title 31,
                    United States Code, of each Federal agency
                    participating in the SBIR program;
                        (B) whether companies who can demonstrate
                    project feasibility, but who have not received
                    a first phase award, should be eligible for
                    second phase awards, and the potential impact
                    of such awards on the competitive selection
                    process of the program;
                        (C) whether the Federal Government should
                    be permitted to recoup some or all of its
                    expenses if a controlling interest in a company
                    receiving an SBIR award is sold to a foreign
                    company or to a company that is not a small
                    business concern;
                        (D) how to increase the use by the Federal
                    Government in its programs and procurements of
                    technology-oriented small businesses; and
                        (E) improvements to the SBIR program, if
                    any are considered appropriate.
        (b) Participation by Small Business.--
                (1) In general.--In a manner consistent with law
            and with National Research Council study guidelines and
            procedures, knowledgeable individuals from the small
            business community with experience in the SBIR program
            shall be included--
                        (A) in any panel established by the
                    National Research Council for the purpose of
                    performing the study conducted under this
                    section; and
                        (B) among those who are asked by the
                    National Research Council to peer review the
                    study.
                (2) Consultation.--To ensure that the concerns of
            small business are appropriately considered under this
            subsection, the National Research Council shall consult
            with and consider the views of the Office of Technology
            and the Office of Advocacy of the Small Business
            Administration and other interested parties, including
            entities, organizations, and individuals actively
            engaged in enhancing or developing the technological
            capabilities of small business concerns.
        (c) Progress Reports.--The National Research Council shall
    provide semiannual progress reports on the study conducted
    under this section to the Committee on Science and the
    Committee on Small Business of the House of Representatives,
    and to the Committee on Small Business of the Senate.
        (d) Report.--The National Research Council shall transmit
    to the heads of agencies entering into an agreement under this
    section and to the Committee on Science and the Committee on
    Small Business of the House of Representatives, and to the
    Committee on Small Business of the Senate--
                (1) not later than 3 years after the date of
            enactment of this Act, a report including the results
            of the study conducted under subsection (a)(1) and
            recommendations made under subsection (a)(2); and
                (2) not later than 6 years after that date of
            enactment, an update of such report.

    SEC. 109. FEDERAL AGENCY EXPENDITURES FOR THE SBIR PROGRAM.

        Section 9(i) of the Small Business Act (15 U.S.C. 638(i))
    is amended--
                (1) by striking ``(i) Each Federal'' and inserting
            the following:
        ``(i) Annual Reporting.--
                ``(1) In general.--Each Federal''; and
                (2) by adding at the end the following:
                ``(2) Calculation of extramural budget.--
                        ``(A) Methodology.--Not later than 4 months
                    after the date of enactment of each
                    appropriations Act for a Federal agency
                    required by this section to have an SBIR
                    program, the Federal agency shall submit to the
                    Administrator a report, which shall include a
                    description of the methodology used for
                    calculating the amount of the extramural budget
                    of that Federal agency.
                        ``(B) Administrator's analysis.--The
                    Administrator shall include an analysis of the
                    methodology received from each Federal agency
                    referred to in subparagraph (A) in the report
                    required by subsection (b)(7).''.

    SEC. 110. POLICY DIRECTIVE MODIFICATIONS.

        Section 9(j) of the Small Business Act (15 U.S.C. 638(j))
    is amended by adding at the end the following:
                ``(3) Additional modifications.--Not later than 120
            days after the date of enactment of the Small Business
            Innovation Research Program Reauthorization Act of
            2000, the Administrator shall modify the policy
            directives issued pursuant to this subsection--
                        ``(A) to clarify that the rights provided
                    for under paragraph (2)(A) apply to all Federal
                    funding awards under this section, including
                    the first phase (as described in subsection
                    (e)(4)(A)), the second phase (as described in
                    subsection (e)(4)(B)), and the third phase (as
                    described in subsection (e)(4)(C));
                        ``(B) to provide for the requirement of a
                    succinct commercialization plan with each
                    application for a second phase award that is
                    moving toward commercialization;
                        ``(C) to require agencies to report to the
                    Administration, not less frequently than
                    annually, all instances in which an agency
                    pursued research, development, or production of
                    a technology developed by a small business
                    concern using an award made under the SBIR
                    program of that agency, and determined that it
                    was not practicable to enter into a follow-on
                    non-SBIR program funding agreement with the
                    small business concern, which report shall
                    include, at a minimum--
                                ``(i) the reasons why the follow-on
                            funding agreement with the small
                            business concern was not practicable;
                                ``(ii) the identity of the entity
                            with which the agency contracted to
                            perform the research, development, or
                            production; and
                                ``(iii) a description of the type
                            of funding agreement under which the
                            research, development, or production
                            was obtained; and
                        ``(D) to implement subsection (v),
                    including establishing standardized procedures
                    for the provision of information pursuant to
                    subsection (k)(3).''.

    SEC. 111. FEDERAL AND STATE TECHNOLOGY PARTNERSHIP PROGRAM.

        (a) Findings.--Congress finds that--
                (1) programs to foster economic development among
            small high-technology firms vary widely among the
            States;
                (2) States that do not aggressively support the
            development of small high-technology firms, including
            participation by small business concerns in the SBIR
            program, are at a competitive disadvantage in
            establishing a business climate that is conducive to
            technology development; and
                (3) building stronger national, State, and local
            support for science and technology research in these
            disadvantaged States will expand economic opportunities
            in the United States, create jobs, and increase the
            competitiveness of the United States in the world
            market.
        (b) Federal and State Technology Partnership Program.--The
    Small Business Act (15 U.S.C. 631 et seq.) is amended--
                (1) by redesignating section 34 as section 36; and
                (2) by inserting after section 33 the following:

    ``SEC. 34. FEDERAL AND STATE TECHNOLOGY PARTNERSHIP PROGRAM.

        ``(a) Definitions.--In this section and section 35, the
    following definitions apply:
                ``(1) Applicant.--The term `applicant' means an
            entity, organization, or individual that submits a
            proposal for an award or a cooperative agreement under
            this section.
                ``(2) Business advice and counseling.--The term
            `business advice and counseling' means providing advice
            and assistance on matters described in section
            35(c)(2)(B) to small business concerns to guide them
            through the SBIR and STTR program process, from
            application to award and successful completion of each
            phase of the program.
                ``(3) FAST program.--The term `FAST program' means
            the Federal and State Technology Partnership Program
            established under this section.
                ``(4) Mentor.--The term `mentor' means an
            individual described in section 35(c)(2).
                ``(5) Mentoring network.--The term `Mentoring
            Network' means an association, organization, coalition,
            or other entity (including an individual) that meets
            the requirements of section 35(c).
                ``(6) Recipient.--The term `recipient' means a
            person that receives an award or becomes party to a
            cooperative agreement under this section.
                ``(7) SBIR program.--The term `SBIR program' has
            the same meaning as in section 9(e)(4).
                ``(8) State.--The term `State' means each of the
            several States, the District of Columbia, the
            Commonwealth of Puerto Rico, the Virgin Islands, Guam,
            and American Samoa.
                ``(9) STTR program.--The term `STTR program' has
            the same meaning as in section 9(e)(6).
        ``(b) Establishment of Program.--The Administrator shall
    establish a program to be known as the Federal and State
    Technology Partnership Program, the purpose of which shall be
    to strengthen the technological competitiveness of small
    business concerns in the States.
        ``(c) Grants and Cooperative Agreements.--
                ``(1) Joint review.--In carrying out the FAST
            program under this section, the Administrator and the
            SBIR program managers at the National Science
            Foundation and the Department of Defense shall jointly
            review proposals submitted by applicants and may make
            awards or enter into cooperative agreements under this
            section based on the factors for consideration set
            forth in paragraph (2), in order to enhance or develop
            in a State--
                        ``(A) technology research and development
                    by small business concerns;
                        ``(B) technology transfer from university
                    research to technology-based small business
                    concerns;
                        ``(C) technology deployment and diffusion
                    benefiting small business concerns;
                        ``(D) the technological capabilities of
                    small business concerns through the
                    establishment or operation of consortia
                    comprised of entities, organizations, or
                    individuals, including--
                                ``(i) State and local development
                            agencies and entities;
                                ``(ii) representatives of
                            technology-based small business
                            concerns;
                                ``(iii) industries and emerging
                            companies;
                                ``(iv) universities; and
                                ``(v) small business development
                            centers; and
                        ``(E) outreach, financial support, and
                    technical assistance to technology-based small
                    business concerns participating in or
                    interested in participating in an SBIR program,
                    including initiatives--
                                ``(i) to make grants or loans to
                            companies to pay a portion or all of
                            the cost of developing SBIR proposals;
                                ``(ii) to establish or operate a
                            Mentoring Network within the FAST
                            program to provide business advice and
                            counseling that will assist small
                            business concerns that have been
                            identified by FAST program
                            participants, program managers of
                            participating SBIR agencies, the
                            Administration, or other entities that
                            are knowledgeable about the SBIR and
                            STTR programs as good candidates for
                            the SBIR and STTR programs, and that
                            would benefit from mentoring, in
                            accordance with section 35;
                                ``(iii) to create or participate in
                            a training program for individuals
                            providing SBIR outreach and assistance
                            at the State and local levels; and
                                ``(iv) to encourage the
                            commercialization of technology
                            developed through SBIR program funding.
                ``(2) Selection considerations.--In making awards
            or entering into cooperative agreements under this
            section, the Administrator and the SBIR program
            managers referred to in paragraph (1)--
                        ``(A) may only consider proposals by
                    applicants that intend to use a portion of the
                    Federal assistance provided under this section
                    to provide outreach, financial support, or
                    technical assistance to technology-based small
                    business concerns participating in or
                    interested in participating in the SBIR
                    program; and
                        ``(B) shall consider, at a minimum--
                                ``(i) whether the applicant has
                            demonstrated that the assistance to be
                            provided would address unmet needs of
                            small business concerns in the
                            community, and whether it is important
                            to use Federal funding for the proposed
                            activities;
                                ``(ii) whether the applicant has
                            demonstrated that a need exists to
                            increase the number or success of small
                            high-technology businesses in the
                            State, as measured by the number of
                            first phase and second phase SBIR
                            awards that have historically been
                            received by small business concerns in
                            the State;
                                ``(iii) whether the projected costs
                            of the proposed activities are
                            reasonable;
                                ``(iv) whether the proposal
                            integrates and coordinates the proposed
                            activities with other State and local
                            programs assisting small high-
                            technology firms in the State; and
                                ``(v) the manner in which the
                            applicant will measure the results of
                            the activities to be conducted.
                ``(3) Proposal limit.--Not more than 1 proposal may
            be submitted for inclusion in the FAST program under
            this section to provide services in any one State in
            any 1 fiscal year.
                ``(4) Process.--Proposals and applications for
            assistance under this section shall be in such form and
            subject to such procedures as the Administrator shall
            establish.
        ``(d) Cooperation and Coordination.--In carrying out the
    FAST program under this section, the Administrator shall
    cooperate and coordinate with--
                ``(1) Federal agencies required by section 9 to
            have an SBIR program; and
                ``(2) entities, organizations, and individuals
            actively engaged in enhancing or developing the
            technological capabilities of small business concerns,
            including--
                        ``(A) State and local development agencies
                    and entities;
                        ``(B) State committees established under
                    the Experimental Program to Stimulate
                    Competitive Research of the National Science
                    Foundation (as established under section 113 of
                    the National Science Foundation Authorization
                    Act of 1988 (42 U.S.C. 1862g));
                        ``(C) State science and technology
                    councils; and
                        ``(D) representatives of technology-based
                    small business concerns.
        ``(e) Administrative Requirements.--
                ``(1) Competitive basis.--Awards and cooperative
            agreements under this section shall be made or entered
            into, as applicable, on a competitive basis.
                ``(2) Matching requirements.--
                        ``(A) In general.--The non-Federal share of
                    the cost of an activity (other than a planning
                    activity) carried out using an award or under a
                    cooperative agreement under this section shall
                    be--
                                ``(i) 50 cents for each Federal
                            dollar, in the case of a recipient that
                            will serve small business concerns
                            located in one of the 18 States
                            receiving the fewest SBIR first phase
                            awards (as described in section
                            9(e)(4)(A));
                                ``(ii) except as provided in
                            subparagraph (B), 1 dollar for each
                            Federal dollar, in the case of a
                            recipient that will serve small
                            business concerns located in one of the
                            16 States receiving the greatest number
                            of such SBIR first phase awards; and
                                ``(iii) except as provided in
                            subparagraph (B), 75 cents for each
                            Federal dollar, in the case of a
                            recipient that will serve small
                            business concerns located in a State
                            that is not described in clause (i) or
                            (ii) that is receiving such SBIR first
                            phase awards.
                        ``(B) Low-income areas.--The non-Federal
                    share of the cost of the activity carried out
                    using an award or under a cooperative agreement
                    under this section shall be 50 cents for each
                    Federal dollar that will be directly allocated
                    by a recipient described in subparagraph (A) to
                    serve small business concerns located in a
                    qualified census tract, as that term is defined
                    in section 42(d)(5)(C)(ii) of the Internal
                    Revenue Code of 1986. Federal dollars not so
                    allocated by that recipient shall be subject to
                    the matching requirements of subparagraph (A).
                        ``(C) Types of funding.--The non-Federal
                    share of the cost of an activity carried out by
                    a recipient shall be comprised of not less than
                    50 percent cash and not more than 50 percent of
                    indirect costs and in-kind contributions,
                    except that no such costs or contributions may
                    be derived from funds from any other Federal
                    program.
                        ``(D) Rankings.--For purposes of
                    subparagraph (A), the Administrator shall
                    reevaluate the ranking of a State once every 2
                    fiscal years, beginning with fiscal year 2001,
                    based on the most recent statistics compiled by
                    the Administrator.
                ``(3) Duration.--Awards may be made or cooperative
            agreements entered into under this section for multiple
            years, not to exceed 5 years in total.
        ``(f) Reports.--
                ``(1) Initial report.--Not later than 120 days
            after the date of enactment of the Small Business
            Innovation Research Program Reauthorization Act of
            2000, the Administrator shall prepare and submit to the
            Committee on Small Business of the Senate and the
            Committee on Science and the Committee on Small
            Business of the House of Representatives a report,
            which shall include, with respect to the FAST program,
            including Mentoring Networks--
                        ``(A) a description of the structure and
                    procedures of the program;
                        ``(B) a management plan for the program;
                    and
                        ``(C) a description of the merit-based
                    review process to be used in the program.
                ``(2) Annual reports.--The Administrator shall
            submit an annual report to the Committee on Small
            Business of the Senate and the Committee on Science and
            the Committee on Small Business of the House of
            Representatives regarding--
                        ``(A) the number and amount of awards
                    provided and cooperative agreements entered
                    into under the FAST program during the
                    preceding year;
                        ``(B) a list of recipients under this
                    section, including their location and the
                    activities being performed with the awards made
                    or under the cooperative agreements entered
                    into; and
                        ``(C) the Mentoring Networks and the
                    mentoring database, as provided for under
                    section 35, including--
                                ``(i) the status of the inclusion
                            of mentoring information in the
                            database required by section 9(k); and
                                ``(ii) the status of the
                            implementation and description of the
                            usage of the Mentoring Networks.
        ``(g) Reviews by Inspector General.--
                ``(1) In general.--The Inspector General of the
            Administration shall conduct a review of--
                        ``(A) the extent to which recipients under
                    the FAST program are measuring the performance
                    of the activities being conducted and the
                    results of such measurements; and
                        ``(B) the overall management and
                    effectiveness of the FAST program.
                ``(2) Report.--During the first quarter of fiscal
            year 2004, the Inspector General of the Administration
            shall submit a report to the Committee on Small
            Business of the Senate and the Committee on Science and
            the Committee on Small Business of the House of
            Representatives on the review conducted under paragraph
            (1).
        ``(h) Program Levels.--
                ``(1) In general.--There is authorized to be
            appropriated to carry out the FAST program, including
            Mentoring Networks, under this section and section 35,
            $10,000,000 for each of fiscal years 2001 through 2005.
                ``(2) Mentoring database.--Of the total amount made
            available under paragraph (1) for fiscal years 2001
            through 2005, a reasonable amount, not to exceed a
            total of $500,000, may be used by the Administration to
            carry out section 35(d).
        ``(i) Termination.--The authority to carry out the FAST
    program under this section shall terminate on September 30,
    2005.''.
        (c) Coordination of Technology Development Programs.--
    Section 9 of the Small Business Act (15 U.S.C. 638) is amended
    by adding at the end the following:
        ``(u) Coordination of Technology Development Programs.--
                ``(1) Definition of technology development
            program.--In this subsection, the term `technology
            development program' means--
                        ``(A) the Experimental Program to Stimulate
                    Competitive Research of the National Science
                    Foundation, as established under section 113 of
                    the National Science Foundation Authorization
                    Act of 1988 (42 U.S.C. 1862g);
                        ``(B) the Defense Experimental Program to
                    Stimulate Competitive Research of the
                    Department of Defense;
                        ``(C) the Experimental Program to Stimulate
                    Competitive Research of the Department of
                    Energy;
                        ``(D) the Experimental Program to Stimulate
                    Competitive Research of the Environmental
                    Protection Agency;
                        ``(E) the Experimental Program to Stimulate
                    Competitive Research of the National
                    Aeronautics and Space Administration;
                        ``(F) the Institutional Development Award
                    Program of the National Institutes of Health;
                    and
                        ``(G) the National Research Initiative
                    Competitive Grants Program of the Department of
                    Agriculture.
                ``(2) Coordination requirements.--Each Federal
            agency that is subject to subsection (f) and that has
            established a technology development program may, in
            each fiscal year, review for funding under that
            technology development program--
                        ``(A) any proposal to provide outreach and
                    assistance to 1 or more small business concerns
                    interested in participating in the SBIR
                    program, including any proposal to make a grant
                    or loan to a company to pay a portion or all of
                    the cost of developing an SBIR proposal, from
                    an entity, organization, or individual located
                    in--
                                ``(i) a State that is eligible to
                            participate in that program; or
                                ``(ii) a State described in
                            paragraph (3); or
                        ``(B) any proposal for the first phase of
                    the SBIR program, if the proposal, though
                    meritorious, is not funded through the SBIR
                    program for that fiscal year due to funding
                    restraints, from a small business concern
                    located in--
                                ``(i) a State that is eligible to
                            participate in a technology development
                            program; or
                                ``(ii) a State described in
                            paragraph (3).
                ``(3) Additionally eligible state.--A State
            referred to in subparagraph (A)(ii) or (B)(ii) of
            paragraph (2) is a State in which the total value of
            contracts awarded to small business concerns under all
            SBIR programs is less than the total value of contracts
            awarded to small business concerns in a majority of
            other States, as determined by the Administrator in
            biennial fiscal years, beginning with fiscal year 2000,
            based on the most recent statistics compiled by the
            Administrator.''.

    SEC. 112. MENTORING NETWORKS.

        The Small Business Act (15 U.S.C. 631 et seq.) is amended
    by inserting after section 34, as added by section 111(b)(2) of
    this Act, the following:

    ``SEC. 35. MENTORING NETWORKS.

        ``(a) Findings.--Congress finds that--
                ``(1) the SBIR and STTR programs create jobs,
            increase capacity for technological innovation, and
            boost international competitiveness;
                ``(2) increasing the quantity of applications from
            all States to the SBIR and STTR programs would enhance
            competition for such awards and the quality of the
            completed projects; and
                ``(3) mentoring is a natural complement to the FAST
            program of reaching out to new companies regarding the
            SBIR and STTR programs as an effective and low-cost way
            to improve the likelihood that such companies will
            succeed in such programs in developing and
            commercializing their research.
        ``(b) Authorization for Mentoring Networks.--The recipient
    of an award or participant in a cooperative agreement under
    section 34 may use a reasonable amount of such assistance for
    the establishment of a Mentoring Network under this section.
        ``(c) Criteria for Mentoring Networks.--A Mentoring Network
    established using assistance under section 34 shall--
                ``(1) provide business advice and counseling to
            high technology small business concerns located in the
            State or region served by the Mentoring Network and
            identified under section 34(c)(1)(E)(ii) as potential
            candidates for the SBIR or STTR programs;
                ``(2) identify volunteer mentors who--
                        ``(A) are persons associated with a small
                    business concern that has successfully
                    completed one or more SBIR or STTR funding
                    agreements; and
                        ``(B) have agreed to guide small business
                    concerns through all stages of the SBIR or STTR
                    program process, including providing assistance
                    relating to--
                                ``(i) proposal writing;
                                ``(ii) marketing;
                                ``(iii) Government accounting;
                                ``(iv) Government audits;
                                ``(v) project facilities and
                            equipment;
                                ``(vi) human resources;
                                ``(vii) third phase partners;
                                ``(viii) commercialization;
                                ``(ix) venture capital networking;
                            and
                                ``(x) other matters relevant to the
                            SBIR and STTR programs;
                ``(3) have experience working with small business
            concerns participating in the SBIR and STTR programs;
                ``(4) contribute information to the national
            database referred to in subsection (d); and
                ``(5) agree to reimburse volunteer mentors for out-
            of-pocket expenses related to service as a mentor under
            this section.
        ``(d) Mentoring Database.--The Administrator shall--
                ``(1) include in the database required by section
            9(k)(1), in cooperation with the SBIR, STTR, and FAST
            programs, information on Mentoring Networks and mentors
            participating under this section, including a
            description of their areas of expertise;
                ``(2) work cooperatively with Mentoring Networks to
            maintain and update the database;
                ``(3) take such action as may be necessary to
            aggressively promote Mentoring Networks under this
            section; and
                ``(4) fulfill the requirements of this subsection
            either directly or by contract.''.

    SEC. 113. SIMPLIFIED REPORTING REQUIREMENTS.

        Section 9 of the Small Business Act (15 U.S.C. 638), as
    amended by this Act, is further amended by adding at the end
    the following:
        ``(v) Simplified Reporting Requirements.--The Administrator
    shall work with the Federal agencies required by this section
    to have an SBIR program to standardize reporting requirements
    for the collection of data from SBIR applicants and awardees,
    including data for inclusion in the database under subsection
    (k), taking into consideration the unique needs of each agency,
    and to the extent possible, permitting the updating of
    previously reported information by electronic means. Such
    requirements shall be designed to minimize the burden on small
    businesses.''.

    SEC. 114. RURAL OUTREACH PROGRAM EXTENSION.

        (a) Extension of Termination Date.--Section 501(b)(2) of
    the Small Business Reauthorization Act of 1997 (15 U.S.C. 638
    note; 111 Stat. 2622) is amended by striking ``2001'' and
    inserting ``2005''.
        (b) Extension of Authorization of Appropriations.--Section
    9(s)(2) of the Small Business Act (15 U.S.C. 638(s)(2)) is
    amended by striking ``for fiscal year 1998, 1999, 2000, or
    2001'' and inserting ``for each of the fiscal years 2000
    through 2005,''.

                        TITLE II--BUSINESS LOAN PROGRAMS

    SEC. 201. SHORT TITLE.

        This title may be cited as the ``Small Business Loan
    Improvement Act of 2000''.

    SEC. 202. LEVELS OF PARTICIPATION.

        Section 7(a)(2)(A) of the Small Business Act (15 U.S.C.
    636(a)(2)(A)) is amended--
                (1) in paragraph (i) by striking ``$100,000'' and
            inserting ``$150,000''; and
                (2) in paragraph (ii)--
                        (A) by striking ``80 percent'' and
                    inserting ``85 percent''; and
                        (B) by striking ``$100,000'' and inserting
                    ``$150,000''.

    SEC. 203. LOAN AMOUNTS.

        Section 7(a)(3)(A) of the Small Business Act (15 U.S.C.
    636(a)(3)(A)) is amended by striking ``$750,000,'' and
    inserting, ``$1,000,000 (or if the gross loan amount would
    exceed $2,000,000),''.

    SEC. 204. INTEREST ON DEFAULTED LOANS.

        Section 7(a)(4)(B) of the Small Business Act (15 U.S.C.
    636(a)(4)(B)) is amended by adding at the end the following:
                                ``(iii) Applicability.--Clauses (i)
                            and (ii) shall not apply to loans made
                            on or after October 1, 2000.''.

    SEC. 205. PREPAYMENT OF LOANS.

        Section 7(a)(4) of the Small Business Act (15 U.S.C.
    636(a)(4)) is further amended--
                (1) by striking ``(4) Interest rates and fees.--''
            and inserting ``(4) Interest rates and prepayment
            charges.--''; and
                (2) by adding at the end the following:
                        ``(C) Prepayment charges.--
                                ``(i) In general.--A borrower who
                            prepays any loan guaranteed under this
                            subsection shall remit to the
                            Administration a subsidy recoupment fee
                            calculated in accordance with clause
                            (ii) if--
                                        ``(I) the loan is for a
                                    term of not less than 15 years;
                                        ``(II) the prepayment is
                                    voluntary;
                                        ``(III) the amount of
                                    prepayment in any calendar year
                                    is more than 25 percent of the
                                    outstanding balance of the
                                    loan; and
                                        ``(IV) the prepayment is
                                    made within the first 3 years
                                    after disbursement of the loan
                                    proceeds.
                                ``(ii) Subsidy recoupment fee.--The
                            subsidy recoupment fee charged under
                            clause (i) shall be--
                                        ``(I) 5 percent of the
                                    amount of prepayment, if the
                                    borrower prepays during the
                                    first year after disbursement;
                                        ``(II) 3 percent of the
                                    amount of prepayment, if the
                                    borrower prepays during the
                                    second year after disbursement;
                                    and
                                        ``(III) 1 percent of the
                                    amount of prepayment, if the
                                    borrower prepays during the
                                    third year after
                                    disbursement.''.

    SEC. 206. GUARANTEE FEES.

        Section 7(a)(18) of the Small Business Act (15 U.S.C.
    636(a)(18)) is amended to read as follows:
                ``(18) Guarantee fees.--
                        ``(A) In general.--With respect to each
                    loan guaranteed under this subsection (other
                    than a loan that is repayable in 1 year or
                    less), the Administration shall collect a
                    guarantee fee, which shall be payable by the
                    participating lender, and may be charged to the
                    borrower, as follows:
                                ``(i) A guarantee fee equal to 2
                            percent of the deferred participation
                            share of a total loan amount that is
                            not more than $150,000.
                                ``(ii) A guarantee fee equal to 3
                            percent of the deferred participation
                            share of a total loan amount that is
                            more than $150,000, but not more than
                            $700,000.
                                ``(iii) A guarantee fee equal to
                            3.5 percent of the deferred
                            participation share of a total loan
                            amount that is more than $700,000.
                        ``(B) Retention of certain fees.--Lenders
                    participating in the programs established under
                    this subsection may retain not more than 25
                    percent of a fee collected under subparagraph
                    (A)(i).''.

    SEC. 207. LEASE TERMS.

        Section 7(a) of the Small Business Act (15 U.S.C. 636(a))
    is further amended by adding at the end the following:
                ``(28) Leasing.--In addition to such other lease
            arrangements as may be authorized by the
            Administration, a borrower may permanently lease to one
            or more tenants not more than 20 percent of any
            property constructed with the proceeds of a loan
            guaranteed under this subsection, if the borrower
            permanently occupies and uses not less than 60 percent
            of the total business space in the property.''.

    SEC. 208. APPRAISALS FOR LOANS SECURED BY REAL PROPERTY.

        (a) Small Business Act.--Section 7(a) of the Small Business
    Act (15 U.S.C. 636(a)) is amended by adding at the end the
    following:
                ``(29) Real estate appraisals.--With respect to a
            loan under this subsection that is secured by
            commercial real property, an appraisal of such property
            by a State licensed or certified appraiser--
                        ``(A) shall be required by the
                    Administration in connection with any such loan
                    for more than $250,000; or
                        ``(B) may be required by the Administration
                    or the lender in connection with any such loan
                    for $250,000 or less, if such appraisal is
                    necessary for appropriate evaluation of
                    creditworthiness.''.
        (b) Small Business Investment Act of 1958.--Section
    502(3)(E) of the Small Business Investment Act of 1958 (15
    U.S.C. 696(3)(E)) is amended--
                (1) by striking ``The collateral'' and inserting
            the following:
                                ``(i) In general.--The
                            collateral''; and
                (2) by adding at the end the following:
                                ``(ii) Appraisals.--With respect to
                            commercial real property provided by
                            the small business concern as
                            collateral, an appraisal of the
                            property by a State licensed or
                            certified appraiser--
                                        ``(I) shall be required by
                                    the Administration before
                                    disbursement of the loan if the
                                    estimated value of that
                                    property is more than $250,000;
                                    or
                                        ``(II) may be required by
                                    the Administration or the
                                    lender before disbursement of
                                    the loan if the estimated value
                                    of that property is $250,000 or
                                    less, and such appraisal is
                                    necessary for appropriate
                                    evaluation of
                                    creditworthiness.''.

    SEC. 209. SALE OF GUARANTEED LOANS MADE FOR EXPORT PURPOSES.

        Section 5(f)(1)(C) of the Small Business Act (15 U.S.C.
    634(f)(1)(C)) is amended to read as follows:
                ``(C) each loan, except each loan made under
            section 7(a)(14), shall have been fully disbursed to
            the borrower prior to any sale.''.

    SEC. 210. MICROLOAN PROGRAM.

        (a) In General.--Section 7(m) of the Small Business Act (15
    U.S.C. 636(m)) is amended--
                (1) in paragraphs (1)(B)(iii) and (3)(E), by
            striking ``$25,000'' each place it appears and
            inserting ``$35,000'';
                (2) in paragraphs (1)(A)(iii)(I), (3)(A)(ii), and
            (4)(C)(i)(II), by striking ``$7,500'' each place it
            appears and inserting ``$10,000'';
                (3) in paragraph (3)(E), by striking ``$15,000''
            and inserting ``$20,000'';
                (4) in paragraph (5)(A)--
                        (A) by striking ``25 grants'' and inserting
                    ``55 grants''; and
                        (B) by striking ``$125,000'' and inserting
                    ``$200,000'';
                (5) in paragraph (6)(B), by striking ``$10,000''
            and inserting ``$15,000''; and
                (6) in paragraph (7), by striking subparagraph (A)
            and inserting the following:
                        ``(A) Number of participants.--Under the
                    program authorized by this subsection, the
                    Administration may fund, on a competitive
                    basis, not more than 300 intermediaries.''.
        (b) Conforming Amendments.--Section 7(m)(11)(B) of the
    Small Business Act (15 U.S.C. 636(m)(11)(B)) is amended by
    striking ``$25,000'' and inserting ``$35,000''.

                TITLE III--CERTIFIED DEVELOPMENT COMPANY PROGRAM

    SEC. 301. SHORT TITLE.

        This title may be cited as the ``Certified Development
    Company Program Improvements Act of 2000''.

    SEC. 302. WOMEN-OWNED BUSINESSES.

        Section 501(d)(3)(C) of the Small Business Investment Act
    of 1958 (15 U.S.C. 695(d)(3)(C)) is amended by inserting before
    the comma ``or women-owned business development''.

    SEC. 303. MAXIMUM DEBENTURE SIZE.

        Section 502(2) of the Small Business Investment Act of 1958
    (15 U.S.C. 696(2)) is amended to read as follows:
                ``(2) Loans made by the Administration under this
            section shall be limited to $1,000,000 for each such
            identifiable small business concern, except loans
            meeting the criteria specified in section 501(d)(3),
            which shall be limited to $1,300,000 for each such
            identifiable small business concern.''.

    SEC. 304. FEES.

        Section 503(f) of the Small Business Investment Act of 1958
    (15 U.S.C. 697(f)) is amended to read as follows:
        ``(f) Effective Date.--The fees authorized by subsections
    (b) and (d) shall apply to financings approved by the
    Administration on or after October 1, 1996, but shall not apply
    to financings approved by the Administration on or after
    October 1, 2003.''.

    SEC. 305. PREMIER CERTIFIED LENDERS PROGRAM.

        Section 217(b) of the Small Business Administration
    Reauthorization and Amendments Act of 1994 (Public Law 103-403,
    15 U.S.C. 697 note) (relating to section 508 of the Small
    Business Investment Act of 1958) is repealed.

    SEC. 306. SALE OF CERTAIN DEFAULTED LOANS.

        Section 508 of the Small Business Investment Act of 1958
    (15 U.S.C. 697e) is amended--
                (1) in subsection (a), by striking ``On a pilot
            program basis, the'' and inserting ``The'';
                (2) by redesignating subsections (d) through (i) as
            subsections (e) through (j), respectively;
                (3) in subsection (f) (as redesignated by paragraph
            (2)), by striking ``subsection (f)'' and inserting
            ``subsection (g)'';
                (4) in subsection (h) (as redesignated by paragraph
            (2)), by striking ``subsection (f)'' and inserting
            ``subsection (g)''; and
                (5) by inserting after subsection (c) the
            following:
        ``(d) Sale of Certain Defaulted Loans.--
                ``(1) Notice.--If, upon default in repayment, the
            Administration acquires a loan guaranteed under this
            section and identifies such loan for inclusion in a
            bulk asset sale of defaulted or repurchased loans or
            other financings, it shall give prior notice thereof to
            any certified development company which has a
            contingent liability under this section. The notice
            shall be given to the company as soon as possible after
            the financing is identified, but not less than 90 days
            before the date the Administration first makes any
            records on such financing available for examination by
            prospective purchasers prior to its offering in a
            package of loans for bulk sale.
                ``(2) Limitations.--The Administration shall not
            offer any loan described in paragraph (1) as part of a
            bulk sale unless it--
                        ``(A) provides prospective purchasers with
                    the opportunity to examine the Administration's
                    records with respect to such loan; and
                        ``(B) provides the notice required by
                    paragraph (1).''.

    SEC. 307. LOAN LIQUIDATION.

        (a) Liquidation and Foreclosure.--Title V of the Small
    Business Investment Act of 1958 (15 U.S.C. 695 et seq.) is
    amended by adding at the end the following:

    ``SEC. 510. FORECLOSURE AND LIQUIDATION OF LOANS.

        ``(a) Delegation of Authority.--In accordance with this
    section, the Administration shall delegate to any qualified
    State or local development company (as defined in section
    503(e)) that meets the eligibility requirements of subsection
    (b)(1) the authority to foreclose and liquidate, or to
    otherwise treat in accordance with this section, defaulted
    loans in its portfolio that are funded with the proceeds of
    debentures guaranteed by the Administration under section 503.
        ``(b) Eligibility for Delegation.--
                ``(1) Requirements.--A qualified State or local
            development company shall be eligible for a delegation
            of authority under subsection (a) if--
                        ``(A) the company--
                                ``(i) has participated in the loan
                            liquidation pilot program established
                            by the Small Business Programs
                            Improvement Act of 1996 (15 U.S.C. 695
                            note), as in effect on the day before
                            promulgation of final regulations by
                            the Administration implementing this
                            section;
                                ``(ii) is participating in the
                            Premier Certified Lenders Program under
                            section 508; or
                                ``(iii) during the 3 fiscal years
                            immediately prior to seeking such a
                            delegation, has made an average of not
                            less than 10 loans per year that are
                            funded with the proceeds of debentures
                            guaranteed under section 503; and
                        ``(B) the company--
                                ``(i) has one or more employees--
                                        ``(I) with not less than 2
                                    years of substantive, decision-
                                    making experience in
                                    administering the liquidation
                                    and workout of problem loans
                                    secured in a manner
                                    substantially similar to loans
                                    funded with the proceeds of
                                    debentures guaranteed under
                                    section 503; and
                                        ``(II) who have completed a
                                    training program on loan
                                    liquidation developed by the
                                    Administration in conjunction
                                    with qualified State and local
                                    development companies that meet
                                    the requirements of this
                                    paragraph; or
                                ``(ii) submits to the
                            Administration documentation
                            demonstrating that the company has
                            contracted with a qualified third-party
                            to perform any liquidation activities
                            and secures the approval of the
                            contract by the Administration with
                            respect to the qualifications of the
                            contractor and the terms and conditions
                            of liquidation activities.
                ``(2) Confirmation.--On request the Administration
            shall examine the qualifications of any company
            described in subsection (a) to determine if such
            company is eligible for the delegation of authority
            under this section. If the Administration determines
            that a company is not eligible, the Administration
            shall provide the company with the reasons for such
            ineligibility.
        ``(c) Scope of Delegated Authority.--
                ``(1) In general.--Each qualified State or local
            development company to which the Administration
            delegates authority under section (a) may with respect
            to any loan described in subsection (a)--
                        ``(A) perform all liquidation and
                    foreclosure functions, including the purchase
                    in accordance with this subsection of any other
                    indebtedness secured by the property securing
                    the loan, in a reasonable and sound manner
                    according to commercially accepted practices,
                    pursuant to a liquidation plan approved in
                    advance by the Administration under paragraph
                    (2)(A);
                        ``(B) litigate any matter relating to the
                    performance of the functions described in
                    subparagraph (A), except that the
                    Administration may--
                                ``(i) defend or bring any claim
                            if--
                                        ``(I) the outcome of the
                                    litigation may adversely affect
                                    the Administration's management
                                    of the loan program established
                                    under section 502; or
                                        ``(II) the Administration
                                    is entitled to legal remedies
                                    not available to a qualified
                                    State or local development
                                    company and such remedies will
                                    benefit either the
                                    Administration or the qualified
                                    State or local development
                                    company; or
                                ``(ii) oversee the conduct of any
                            such litigation; and
                        ``(C) take other appropriate actions to
                    mitigate loan losses in lieu of total
                    liquidation or foreclosures, including the
                    restructuring of a loan in accordance with
                    prudent loan servicing practices and pursuant
                    to a workout plan approved in advance by the
                    Administration under paragraph (2)(C).
                ``(2) Administration approval.--
                        ``(A) Liquidation plan.--
                                ``(i) In general.--Before carrying
                            out functions described in paragraph
                            (1)(A), a qualified State or local
                            development company shall submit to the
                            Administration a proposed liquidation
                            plan.
                                ``(ii) Administration action on
                            plan.--
                                        ``(I) Timing.--Not later
                                    than 15 business days after a
                                    liquidation plan is received by
                                    the Administration under clause
                                    (i), the Administration shall
                                    approve or reject the plan.
                                        ``(II) Notice of no
                                    decision.--With respect to any
                                    plan that cannot be approved or
                                    denied within the 15-day period
                                    required by subclause (I), the
                                    Administration shall within
                                    such period provide in
                                    accordance with subparagraph
                                    (E) notice to the company that
                                    submitted the plan.
                                ``(iii) Routine actions.--In
                            carrying out functions described in
                            paragraph (1)(A), a qualified State or
                            local development company may undertake
                            routine actions not addressed in a
                            liquidation plan without obtaining
                            additional approval from the
                            Administration.
                        ``(B) Purchase of indebtedness.--
                                ``(i) In general.--In carrying out
                            functions described in paragraph
                            (1)(A), a qualified State or local
                            development company shall submit to the
                            Administration a request for written
                            approval before committing the
                            Administration to the purchase of any
                            other indebtedness secured by the
                            property securing a defaulted loan.
                                ``(ii) Administration action on
                            request.--
                                        ``(I) Timing.--Not later
                                    than 15 business days after
                                    receiving a request under
                                    clause (i), the Administration
                                    shall approve or deny the
                                    request.
                                        ``(II) Notice of no
                                    decision.--With respect to any
                                    request that cannot be approved
                                    or denied within the 15-day
                                    period required by subclause
                                    (I), the Administration shall
                                    within such period provide in
                                    accordance with subparagraph
                                    (E) notice to the company that
                                    submitted the request.
                        ``(C) Workout plan.--
                                ``(i) In general.--In carrying out
                            functions described in paragraph
                            (1)(C), a qualified State or local
                            development company shall submit to the
                            Administration a proposed workout plan.
                                ``(ii) Administration action on
                            plan.--
                                        ``(I) Timing.--Not later
                                    than 15 business days after a
                                    workout plan is received by the
                                    Administration under clause
                                    (i), the Administration shall
                                    approve or reject the plan.
                                        ``(II) Notice of no
                                    decision.--With respect to any
                                    workout plan that cannot be
                                    approved or denied within the
                                    15-day period required by
                                    subclause (I), the
                                    Administration shall within
                                    such period provide in
                                    accordance with subparagraph
                                    (E) notice to the company that
                                    submitted the plan.
                        ``(D) Compromise of indebtedness.--In
                    carrying out functions described in paragraph
                    (1)(A), a qualified State or local development
                    company may--
                                ``(i) consider an offer made by an
                            obligor to compromise the debt for less
                            than the full amount owing; and
                                ``(ii) pursuant to such an offer,
                            release any obligor or other party
                            contingently liable, if the company
                            secures the written approval of the
                            Administration.
                        ``(E) Contents of notice of no decision.--
                    Any notice provided by the Administration under
                    subparagraph (A)(ii)(II), (B)(ii)(II), or
                    (C)(ii)(II)--
                                ``(i) shall be in writing;
                                ``(ii) shall state the specific
                            reason for the Administration's
                            inability to act on a plan or request;
                                ``(iii) shall include an estimate
                            of the additional time required by the
                            Administration to act on the plan or
                            request; and
                                ``(iv) if the Administration cannot
                            act because insufficient information or
                            documentation was provided by the
                            company submitting the plan or request,
                            shall specify the nature of such
                            additional information or
                            documentation.
                ``(3) Conflict of interest.--In carrying out
            functions described in paragraph (1), a qualified State
            or local development company shall take no action that
            would result in an actual or apparent conflict of
            interest between the company (or any employee of the
            company) and any third party lender, associate of a
            third party lender, or any other person participating
            in a liquidation, foreclosure, or loss mitigation
            action.
        ``(d) Suspension or Revocation of Authority.--The
    Administration may revoke or suspend a delegation of authority
    under this section to any qualified State or local development
    company, if the Administration determines that the company--
                ``(1) does not meet the requirements of subsection
            (b)(1);
                ``(2) has violated any applicable rule or
            regulation of the Administration or any other
            applicable law; or
                ``(3) fails to comply with any reporting
            requirement that may be established by the
            Administration relating to carrying out of functions
            described in paragraph (1).
        ``(e) Report.--
                ``(1) In general.--Based on information provided by
            qualified State and local development companies and the
            Administration, the Administration shall annually
            submit to the Committees on Small Business of the House
            of Representatives and of the Senate a report on the
            results of delegation of authority under this section.
                ``(2) Contents.--Each report submitted under
            paragraph (1) shall include the following information:
                        ``(A) With respect to each loan foreclosed
                    or liquidated by a qualified State or local
                    development company under this section, or for
                    which losses were otherwise mitigated by the
                    company pursuant to a workout plan under this
                    section--
                                ``(i) the total cost of the project
                            financed with the loan;
                                ``(ii) the total original dollar
                            amount guaranteed by the
                            Administration;
                                ``(iii) the total dollar amount of
                            the loan at the time of liquidation,
                            foreclosure, or mitigation of loss;
                                ``(iv) the total dollar losses
                            resulting from the liquidation,
                            foreclosure, or mitigation of loss; and
                                ``(v) the total recoveries
                            resulting from the liquidation,
                            foreclosure, or mitigation of loss,
                            both as a percentage of the amount
                            guaranteed and the total cost of the
                            project financed.
                        ``(B) With respect to each qualified State
                    or local development company to which authority
                    is delegated under this section, the totals of
                    each of the amounts described in clauses (i)
                    through (v) of subparagraph (A).
                        ``(C) With respect to all loans subject to
                    foreclosure, liquidation, or mitigation under
                    this section, the totals of each of the amounts
                    described in clauses (i) through (v) of
                    subparagraph (A).
                        ``(D) A comparison between--
                                ``(i) the information provided
                            under subparagraph (C) with respect to
                            the 12-month period preceding the date
                            on which the report is submitted; and
                                ``(ii) the same information with
                            respect to loans foreclosed and
                            liquidated, or otherwise treated, by
                            the Administration during the same
                            period.
                        ``(E) The number of times that the
                    Administration has failed to approve or reject
                    a liquidation plan in accordance with
                    subparagraph (A)(i), a workout plan in
                    accordance with subparagraph (C)(i), or to
                    approve or deny a request for purchase of
                    indebtedness under subparagraph (B)(i),
                    including specific information regarding the
                    reasons for the Administration's failure and
                    any delays that resulted.''.
        (b) Regulations.--
                (1) In general.--Not later than 150 days after the
            date of enactment of this Act, the Administrator shall
            issue such regulations as may be necessary to carry out
            section 510 of the Small Business Investment Act of
            1958, as added by subsection (a) of this section.
                (2) Termination of pilot program.--Beginning on the
            date on which final regulations are issued under
            paragraph (1), section 204 of the Small Business
            Programs Improvement Act of 1996 (15 U.S.C. 695 note)
            shall cease to have effect.

       TITLE IV--CORRECTIONS TO THE SMALL BUSINESS INVESTMENT ACT OF 1958

    SEC. 401. SHORT TITLE.

        This title may be cited as the ``Small Business Investment
    Corrections Act of 2000''.

    SEC. 402. DEFINITIONS.

        (a) Small Business Concern.--Section 103(5)(A)(i) of the
    Small Business Investment Act of 1958 (15 U.S.C. 662(5)(A)(i))
    is amended by inserting before the semicolon at the end the
    following: ``regardless of the allocation of control during the
    investment period under any investment agreement between the
    business concern and the entity making the investment''.
        (b) Long Term.--Section 103 of the Small Business
    Investment Act of 1958 (15 U.S.C. 662) is amended--
                (1) in paragraph (15), by striking ``and'' at the
            end;
                (2) in paragraph (16), by striking the period at
            the end and inserting ``; and''; and
                (3) by adding at the end the following:
                ``(17) the term `long term', when used in
            connection with equity capital or loan funds invested
            in any small business concern or smaller enterprise,
            means any period of time not less than 1 year.''.

    SEC. 403. INVESTMENT IN SMALL BUSINESS INVESTMENT COMPANIES.

        Section 302(b) of the Small Business Investment Act of 1958
    (15 U.S.C. 682(b)) is amended--
                (1) by striking ``(b) Notwithstanding'' and
            inserting the following:
        ``(b) Financial Institution Investments.--
                ``(1) Certain banks.--Notwithstanding''; and
                (2) by adding at the end the following:
                ``(2) Certain savings associations.--
            Notwithstanding any other provision of law, any Federal
            savings association may invest in any 1 or more small
            business investment companies, or in any entity
            established to invest solely in small business
            investment companies, except that in no event may the
            total amount of such investments by any such Federal
            savings association exceed 5 percent of the capital and
            surplus of the Federal savings association.''.

    SEC. 404. SUBSIDY FEES.

        (a) Debentures.--Section 303(b) of the Small Business
    Investment Act of 1958 (15 U.S.C. 683(b)) is amended by
    striking ``plus an additional charge of 1 percent per annum
    which shall be paid to and retained by the Administration'' and
    inserting ``plus, for debentures obligated after September 30,
    2000, an additional charge, in an amount established annually
    by the Administration, of not more than 1 percent per year as
    necessary to reduce to zero the cost (as defined in section 502
    of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a)) to
    the Administration of purchasing and guaranteeing debentures
    under this Act, which shall be paid to and retained by the
    Administration''.
        (b) Participating Securities.--Section 303(g)(2) of the
    Small Business Investment Act of 1958 (15 U.S.C. 683(g)(2)) is
    amended by striking ``plus an additional charge of 1 percent
    per annum which shall be paid to and retained by the
    Administration'' and inserting ``plus, for participating
    securities obligated after September 30, 2000, an additional
    charge, in an amount established annually by the
    Administration, of not more than 1 percent per year as
    necessary to reduce to zero the cost (as defined in section 502
    of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a)) to
    the Administration of purchasing and guaranteeing participating
    securities under this Act, which shall be paid to and retained
    by the Administration''.

    SEC. 405. DISTRIBUTIONS.

        Section 303(g)(8) of the Small Business Investment Act of
    1958 (15 U.S.C. 683(g)(8)) is amended--
                (1) by striking ``subchapter s corporation'' and
            inserting ``subchapter S corporation'';
                (2) by striking ``the end of any calendar quarter
            based on a quarterly'' and inserting ``any time during
            any calendar quarter based on an''; and
                (3) by striking ``quarterly distributions for a
            calendar year,'' and inserting ``interim distributions
            for a calendar year,''.

    SEC. 406. CONFORMING AMENDMENT.

        Section 310(c)(4) of the Small Business Investment Act of
    1958 (15 U.S.C. 687b(c)(4)) is amended by striking ``five
    years'' and inserting ``1 year''.

              TITLE V--REAUTHORIZATION OF SMALL BUSINESS PROGRAMS

    SEC. 501. SHORT TITLE.

        This title may be cited as the ``Small Business Programs
    Reauthorization Act of 2000''.

    SEC. 502. REAUTHORIZATION OF SMALL BUSINESS PROGRAMS.

        Section 20 of the Small Business Act (15 U.S.C. 631 note)
    is amended by adding at the end the following:
        ``(g) Fiscal Year 2001.--
                ``(1) Program levels.--The following program levels
            are authorized for fiscal year 2001:
                        ``(A) For the programs authorized by this
                    Act, the Administration is authorized to make--
                                ``(i) $45,000,000 in technical
                            assistance grants as provided in
                            section 7(m); and
                                ``(ii) $60,000,000 in direct loans,
                            as provided in 7(m).
                        ``(B) For the programs authorized by this
                    Act, the Administration is authorized to make
                    $19,050,000,000 in deferred participation loans
                    and other financings. Of such sum, the
                    Administration is authorized to make--
                                ``(i) $14,500,000,000 in general
                            business loans as provided in section
                            7(a);
                                ``(ii) $4,000,000,000 in financings
                            as provided in section 7(a)(13) of this
                            Act and section 504 of the Small
                            Business Investment Act of 1958;
                                ``(iii) $500,000,000 in loans as
                            provided in section 7(a)(21); and
                                ``(iv) $50,000,000 in loans as
                            provided in section 7(m).
                        ``(C) For the programs authorized by title
                    III of the Small Business Investment Act of
                    1958, the Administration is authorized to
                    make--
                                ``(i) $2,500,000,000 in purchases
                            of participating securities; and
                                ``(ii) $1,500,000,000 in guarantees
                            of debentures.
                        ``(D) For the programs authorized by part B
                    of title IV of the Small Business Investment
                    Act of 1958, the Administration is authorized
                    to enter into guarantees not to exceed
                    $4,000,000,000 of which not more than 50
                    percent may be in bonds approved pursuant to
                    section 411(a)(3) of that Act.
                        ``(E) The Administration is authorized to
                    make grants or enter cooperative agreements for
                    a total amount of $5,000,000 for the Service
                    Corps of Retired Executives program authorized
                    by section 8(b)(1).
                ``(2) Additional authorizations.--
                        ``(A) There are authorized to be
                    appropriated to the Administration for fiscal
                    year 2001 such sums as may be necessary to
                    carry out the provisions of this Act not
                    elsewhere provided for, including
                    administrative expenses and necessary loan
                    capital for disaster loans pursuant to section
                    7(b), and to carry out title IV of the Small
                    Business Investment Act of 1958, including
                    salaries and expenses of the Administration.
                        ``(B) Notwithstanding any other provision
                    of this paragraph, for fiscal year 2001--
                                ``(i) no funds are authorized to be
                            used as loan capital for the loan
                            program authorized by section 7(a)(21)
                            except by transfer from another Federal
                            department or agency to the
                            Administration, unless the program
                            level authorized for general business
                            loans under paragraph (1)(B)(i) is
                            fully funded; and
                                ``(ii) the Administration may not
                            approve loans on its own behalf or on
                            behalf of any other Federal department
                            or agency, by contract or otherwise,
                            under terms and conditions other than
                            those specifically authorized under
                            this Act or the Small Business
                            Investment Act of 1958, except that it
                            may approve loans under section
                            7(a)(21) of this Act in gross amounts
                            of not more than $1,250,000.
        ``(h) Fiscal Year 2002.--
                ``(1) Program levels.--The following program levels
            are authorized for fiscal year 2002:
                        ``(A) For the programs authorized by this
                    Act, the Administration is authorized to make--
                                ``(i) $60,000,000 in technical
                            assistance grants as provided in
                            section 7(m); and
                                ``(ii) $80,000,000 in direct loans,
                            as provided in 7(m).
                        ``(B) For the programs authorized by this
                    Act, the Administration is authorized to make
                    $20,050,000,000 in deferred participation loans
                    and other financings. Of such sum, the
                    Administration is authorized to make--
                                ``(i) $15,000,000,000 in general
                            business loans as provided in section
                            7(a);
                                ``(ii) $4,500,000,000 in financings
                            as provided in section 7(a)(13) of this
                            Act and section 504 of the Small
                            Business Investment Act of 1958;
                                ``(iii) $500,000,000 in loans as
                            provided in section 7(a)(21); and
                                ``(iv) $50,000,000 in loans as
                            provided in section 7(m).
                        ``(C) For the programs authorized by title
                    III of the Small Business Investment Act of
                    1958, the Administration is authorized to
                    make--
                                ``(i) $3,500,000,000 in purchases
                            of participating securities; and
                                ``(ii) $2,500,000,000 in guarantees
                            of debentures.
                        ``(D) For the programs authorized by part B
                    of title IV of the Small Business Investment
                    Act of 1958, the Administration is authorized
                    to enter into guarantees not to exceed
                    $5,000,000,000 of which not more than 50
                    percent may be in bonds approved pursuant to
                    section 411(a)(3) of that Act.
                        ``(E) The Administration is authorized to
                    make grants or enter cooperative agreements for
                    a total amount of $6,000,000 for the Service
                    Corps of Retired Executives program authorized
                    by section 8(b)(1).
                ``(2) Additional authorizations.--
                        ``(A) There are authorized to be
                    appropriated to the Administration for fiscal
                    year 2002 such sums as may be necessary to
                    carry out the provisions of this Act not
                    elsewhere provided for, including
                    administrative expenses and necessary loan
                    capital for disaster loans pursuant to section
                    7(b), and to carry out title IV of the Small
                    Business Investment Act of 1958, including
                    salaries and expenses of the Administration.
                        ``(B) Notwithstanding any other provision
                    of this paragraph, for fiscal year 2002--
                                ``(i) no funds are authorized to be
                            used as loan capital for the loan
                            program authorized by section 7(a)(21)
                            except by transfer from another Federal
                            department or agency to the
                            Administration, unless the program
                            level authorized for general business
                            loans under paragraph (1)(B)(i) is
                            fully funded; and
                                ``(ii) the Administration may not
                            approve loans on its own behalf or on
                            behalf of any other Federal department
                            or agency, by contract or otherwise,
                            under terms and conditions other than
                            those specifically authorized under
                            this Act or the Small Business
                            Investment Act of 1958, except that it
                            may approve loans under section
                            7(a)(21) of this Act in gross amounts
                            of not more than $1,250,000.
        ``(i) Fiscal Year 2003.--
                ``(1) Program levels.--The following program levels
            are authorized for fiscal year 2003:
                        ``(A) For the programs authorized by this
                    Act, the Administration is authorized to make--
                                ``(i) $70,000,000 in technical
                            assistance grants as provided in
                            section 7(m); and
                                ``(ii) $100,000,000 in direct
                            loans, as provided in 7(m).
                        ``(B) For the programs authorized by this
                    Act, the Administration is authorized to make
                    $21,550,000,000 in deferred participation loans
                    and other financings. Of such sum, the
                    Administration is authorized to make--
                                ``(i) $16,000,000,000 in general
                            business loans as provided in section
                            7(a);
                                ``(ii) $5,000,000,000 in financings
                            as provided in section 7(a)(13) of this
                            Act and section 504 of the Small
                            Business Investment Act of 1958;
                                ``(iii) $500,000,000 in loans as
                            provided in section 7(a)(21); and
                                ``(iv) $50,000,000 in loans as
                            provided in section 7(m).
                        ``(C) For the programs authorized by title
                    III of the Small Business Investment Act of
                    1958, the Administration is authorized to
                    make--
                                ``(i) $4,000,000,000 in purchases
                            of participating securities; and
                                ``(ii) $3,000,000,000 in guarantees
                            of debentures.
                        ``(D) For the programs authorized by part B
                    of title IV of the Small Business Investment
                    Act of 1958, the Administration is authorized
                    to enter into guarantees not to exceed
                    $6,000,000,000 of which not more than 50
                    percent may be in bonds approved pursuant to
                    section 411(a)(3) of that Act.
                        ``(E) The Administration is authorized to
                    make grants or enter into cooperative
                    agreements for a total amount of $7,000,000 for
                    the Service Corps of Retired Executives program
                    authorized by section 8(b)(1).
                ``(2) Additional authorizations.--
                        ``(A) There are authorized to be
                    appropriated to the Administration for fiscal
                    year 2003 such sums as may be necessary to
                    carry out the provisions of this Act not
                    elsewhere provided for, including
                    administrative expenses and necessary loan
                    capital for disaster loans pursuant to section
                    7(b), and to carry out title IV of the Small
                    Business Investment Act of 1958, including
                    salaries and expenses of the Administration.
                        ``(B) Notwithstanding any other provision
                    of this paragraph, for fiscal year 2003--
                                ``(i) no funds are authorized to be
                            used as loan capital for the loan
                            program authorized by section 7(a)(21)
                            except by transfer from another Federal
                            department or agency to the
                            Administration, unless the program
                            level authorized for general business
                            loans under paragraph (1)(B)(i) is
                            fully funded; and
                                ``(ii) the Administration may not
                            approve loans on its own behalf or on
                            behalf of any other Federal department
                            or agency, by contract or otherwise,
                            under terms and conditions other than
                            those specifically authorized under
                            this Act or the Small Business
                            Investment Act of 1958, except that it
                            may approve loans under section
                            7(a)(21) of this Act in gross amounts
                            of not more than $1,250,000.''.

    SEC. 503. ADDITIONAL REAUTHORIZATIONS.

        (a) Drug-Free Workplace Program.--Section 27 of the Small
    Business Act (15 U.S.C. 654) is amended--
                (1) in the section heading, by striking ``DRUG-FREE
            WORKPLACE DEMONSTRATION PROGRAM'' and inserting ``PAUL
            D. COVERDELL DRUG-FREE WORKPLACE PROGRAM''; and
                (2) in subsection (g)(1), by striking ``$10,000,000
            for fiscal years 1999 and 2000'' and inserting
            ``$5,000,000 for each of fiscal years 2001 through
            2003''.
        (b) HUBZone Program.--Section 31 of the Small Business Act
    (15 U.S.C. 657a) is amended by adding at the end the following:
        ``(d) Authorization of Appropriations.--There is authorized
    to be appropriated to carry out the program established by this
    section $10,000,000 for each of fiscal years 2001 through
    2003.''.
        (c) Very Small Business Concerns Program.--Section 304(i)
    of the Small Business Administration Reauthorization and
    Amendments Act of 1994 (Public Law 103-403; 15 U.S.C. 644 note)
    is amended by striking ``September 30, 2000'' and inserting
    ``September 30, 2003''.
        (d) Socially and Economically Disadvantaged Businesses
    Program.--Section 7102(c) of the Federal Acquisition
    Streamlining Act of 1994 (Public Law 103-355; 15 U.S.C. 644
    note) is amended by striking ``September 30, 2000'' and
    inserting ``September 30, 2003''.
        (e) SBDC Services.--Section 21(c)(3)(T) of the Small
    Business Act (15 U.S.C. 648(c)(3)(T)) is amended by striking
    ``2000'' and inserting ``2003''.

    SEC. 504. COSPONSORSHIP.

        (a) In General.--Section 8(b)(1)(A) of the Small Business
    Act (15 U.S.C. 637(b)(1)(A)) is amended to read as follows:
                ``(1)(A) to provide--
                        ``(i) technical, managerial, and
                    informational aids to small business concerns--
                                ``(I) by advising and counseling on
                            matters in connection with Government
                            procurement and policies, principles,
                            and practices of good management;
                                ``(II) by cooperating and advising
                            with--
                                        ``(aa) voluntary business,
                                    professional, educational, and
                                    other nonprofit organizations,
                                    associations, and institutions
                                    (except that the Administration
                                    shall take such actions as it
                                    determines necessary to ensure
                                    that such cooperation does not
                                    constitute or imply an
                                    endorsement by the
                                    Administration of the
                                    organization or its products or
                                    services, and shall ensure that
                                    it receives appropriate
                                    recognition in all printed
                                    materials); and
                                        ``(bb) other Federal and
                                    State agencies;
                                ``(III) by maintaining a
                            clearinghouse for information on
                            managing, financing, and operating
                            small business enterprises; and
                                ``(IV) by disseminating such
                            information, including through
                            recognition events, and by other
                            activities that the Administration
                            determines to be appropriate; and
                        ``(ii) through cooperation with a profit-
                    making concern (referred to in this paragraph
                    as a `cosponsor'), training, information, and
                    education to small business concerns, except
                    that the Administration shall--
                                ``(I) take such actions as it
                            determines to be appropriate to ensure
                            that--
                                        ``(aa) the Administration
                                    receives appropriate
                                    recognition and publicity;
                                        ``(bb) the cooperation does
                                    not constitute or imply an
                                    endorsement by the
                                    Administration of any product
                                    or service of the cosponsor;
                                        ``(cc) unnecessary
                                    promotion of the products or
                                    services of the cosponsor is
                                    avoided; and
                                        ``(dd) utilization of any 1
                                    cosponsor in a marketing area
                                    is minimized; and
                                ``(II) develop an agreement,
                            executed on behalf of the
                            Administration by an employee of the
                            Administration in Washington, the
                            District of Columbia, that provides, at
                            a minimum, that--
                                        ``(aa) any printed material
                                    to announce the cosponsorship
                                    or to be distributed at the
                                    cosponsored activity, shall be
                                    approved in advance by the
                                    Administration;
                                        ``(bb) the terms and
                                    conditions of the cooperation
                                    shall be specified;
                                        ``(cc) only minimal charges
                                    may be imposed on any small
                                    business concern to cover the
                                    direct costs of providing the
                                    assistance;
                                        ``(dd) the Administration
                                    may provide to the
                                    cosponsorship mailing labels,
                                    but not lists of names and
                                    addresses of small business
                                    concerns compiled by the
                                    Administration;
                                        ``(ee) all printed
                                    materials containing the names
                                    of both the Administration and
                                    the cosponsor shall include a
                                    prominent disclaimer that the
                                    cooperation does not constitute
                                    or imply an endorsement by the
                                    Administration of any product
                                    or service of the cosponsor;
                                    and
                                        ``(ff) the Administration
                                    shall ensure that it receives
                                    appropriate recognition in all
                                    cosponsorship printed
                                    materials.''.
        (b) Extension of Cosponsorship Authority.--Section
    401(a)(2) of the Small Business Administration Reauthorization
    and Amendments Act of 1994 (15 U.S.C. 637 note) is amended by
    striking ``September 30, 2000'' and inserting ``September 30,
    2003''.

                           TITLE VI--HUBZONE PROGRAM

                     Subtitle A--HUBZones in Native America

    SEC. 601. SHORT TITLE.

        This subtitle may be cited as the ``HUBZones in Native
    America Act of 2000''.

    SEC. 602. HUBZONE SMALL BUSINESS CONCERN.

        Section 3(p)(3) of the Small Business Act (15 U.S.C.
    632(p)(3)) is amended to read as follows:
                ``(3) Hubzone small business concern.--The term
            `HUBZone small business concern' means--
                        ``(A) a small business concern that is
                    owned and controlled by 1 or more persons, each
                    of whom is a United States citizen;
                        ``(B) a small business concern that is--
                                ``(i) an Alaska Native Corporation
                            owned and controlled by Natives (as
                            determined pursuant to section 29(e)(1)
                            of the Alaska Native Claims Settlement
                            Act (43 U.S.C. 1626(e)(1))); or
                                ``(ii) a direct or indirect
                            subsidiary corporation, joint venture,
                            or partnership of an Alaska Native
                            Corporation qualifying pursuant to
                            section 29(e)(1) of the Alaska Native
                            Claims Settlement Act (43 U.S.C.
                            1626(e)(1)), if that subsidiary, joint
                            venture, or partnership is owned and
                            controlled by Natives (as determined
                            pursuant to section 29(e)(2)) of the
                            Alaska Native Claims Settlement Act (43
                            U.S.C. 1626(e)(2))); or
                        ``(C) a small business concern--
                                ``(i) that is wholly owned by 1 or
                            more Indian tribal governments, or by a
                            corporation that is wholly owned by 1
                            or more Indian tribal governments; or
                                ``(ii) that is owned in part by 1
                            or more Indian tribal governments, or
                            by a corporation that is wholly owned
                            by 1 or more Indian tribal governments,
                            if all other owners are either United
                            States citizens or small business
                            concerns.''.

    SEC. 603. QUALIFIED HUBZONE SMALL BUSINESS CONCERN.

        (a) In General.--Section 3(p)(5)(A)(i) of the Small
    Business Act (15 U.S.C. 632(p)(5)(A)(i)) is amended by striking
    subclauses (I) and (II) and inserting the following:
                                        ``(I) it is a HUBZone small
                                    business concern--
                                                ``(aa) pursuant to
                                            subparagraph (A) or (B)
                                            of paragraph (3), and
                                            that its principal
                                            office is located in a
                                            HUBZone and not fewer
                                            than 35 percent of its
                                            employees reside in a
                                            HUBZone; or
                                                ``(bb) pursuant to
                                            paragraph (3)(C), and
                                            not fewer than 35
                                            percent of its
                                            employees engaged in
                                            performing a contract
                                            awarded to the small
                                            business concern on the
                                            basis of a preference
                                            provided under section
                                            31(b) reside within any
                                            Indian reservation
                                            governed by 1 or more
                                            of the tribal
                                            government owners, or
                                            reside within any
                                            HUBZone adjoining any
                                            such Indian
                                            reservation;
                                        ``(II) the small business
                                    concern will attempt to
                                    maintain the applicable
                                    employment percentage under
                                    subclause (I) during the
                                    performance of any contract
                                    awarded to the small business
                                    concern on the basis of a
                                    preference provided under
                                    section 31(b); and''.
        (b) Clarifying Amendment.--Section 3(p)(5)(D)(i) of the
    Small Business Act (15 U.S.C. 632(p)(5)(D)(i)) is amended by
    inserting ``once the Administrator has made the certification
    required by subparagraph (A)(i) regarding a qualified HUBZone
    small business concern and has determined that subparagraph
    (A)(ii) does not apply to that concern,'' before ``include''.

    SEC. 604. OTHER DEFINITIONS.

        Section 3(p) of the Small Business Act (15 U.S.C. 632(p))
    is amended by adding at the end the following:
                ``(6) Native american small business concerns.--
                        ``(A) Alaska native corporation.--The term
                    `Alaska Native Corporation' has the same
                    meaning as the term `Native Corporation' in
                    section 3 of the Alaska Native Claims
                    Settlement Act (43 U.S.C. 1602).
                        ``(B) Alaska native village.--The term
                    `Alaska Native Village' has the same meaning as
                    the term `Native village' in section 3 of the
                    Alaska Native Claims Settlement Act (43 U.S.C.
                    1602).
                        ``(C) Indian reservation.--The term `Indian
                    reservation'--
                                ``(i) has the same meaning as the
                            term `Indian country' in section 1151
                            of title 18, United States Code, except
                            that such term does not include--
                                        ``(I) any lands that are
                                    located within a State in which
                                    a tribe did not exercise
                                    governmental jurisdiction on
                                    the date of enactment of this
                                    paragraph, unless that tribe is
                                    recognized after that date of
                                    enactment by either an Act of
                                    Congress or pursuant to
                                    regulations of the Secretary of
                                    the Interior for the
                                    administrative recognition that
                                    an Indian group exists as an
                                    Indian tribe (part 83 of title
                                    25, Code of Federal
                                    Regulations); and
                                        ``(II) lands taken into
                                    trust or acquired by an Indian
                                    tribe after the date of
                                    enactment of this paragraph if
                                    such lands are not located
                                    within the external boundaries
                                    of an Indian reservation or
                                    former reservation or are not
                                    contiguous to the lands held in
                                    trust or restricted status on
                                    that date of enactment; and
                                ``(ii) in the State of Oklahoma,
                            means lands that--
                                        ``(I) are within the
                                    jurisdictional areas of an
                                    Oklahoma Indian tribe (as
                                    determined by the Secretary of
                                    the Interior); and
                                        ``(II) are recognized by
                                    the Secretary of the Interior
                                    as eligible for trust land
                                    status under part 151 of title
                                    25, Code of Federal Regulations
                                    (as in effect on the date of
                                    enactment of this
                                    paragraph).''.

                      Subtitle B--Other HUBZone Provisions

    SEC. 611. DEFINITIONS.

        (a) Qualified Census Tract.--Section 3(p)(4)(A) of the
    Small Business Act (15 U.S.C. 632(p)(4)(A)) is amended by
    striking ``(I)''.
        (b) Qualified Nonmetropolitan County.--Section 3(p)(4) of
    the Small Business Act (15 U.S.C. 632(p)(4)) is amended by
    striking subparagraph (B) and inserting the following:
                        ``(B) Qualified nonmetropolitan county.--
                    The term `qualified nonmetropolitan county'
                    means any county--
                                ``(i) that was not located in a
                            metropolitan statistical area (as
                            defined in section 143(k)(2)(B) of the
                            Internal Revenue Code of 1986) at the
                            time of the most recent census taken
                            for purposes of selecting qualified
                            census tracts under section
                            42(d)(5)(C)(ii) of the Internal Revenue
                            Code of 1986; and
                                ``(ii) in which--
                                        ``(I) the median household
                                    income is less than 80 percent
                                    of the nonmetropolitan State
                                    median household income, based
                                    on the most recent data
                                    available from the Bureau of
                                    the Census of the Department of
                                    Commerce; or
                                        ``(II) the unemployment
                                    rate is not less than 140
                                    percent of the Statewide
                                    average unemployment rate for
                                    the State in which the county
                                    is located, based on the most
                                    recent data available from the
                                    Secretary of Labor.''.

    SEC. 612. ELIGIBLE CONTRACTS.

        (a) Commodities Contracts.--Section 31(b)(3) of the Small
    Business Act (15 U.S.C. 657a(b)(3)) is amended--
                (1) by striking ``In any'' and inserting the
            following:
                        ``(A) In general.--Subject to subparagraph
                    (B), in any''; and
                (2) by adding at the end the following:
                        ``(B) Procurement of commodities.--For
                    purchases by the Secretary of Agriculture of
                    agricultural commodities, the price evaluation
                    preference shall be--
                                ``(i) 10 percent, for the portion
                            of a contract to be awarded that is not
                            greater than 25 percent of the total
                            volume being procured for each
                            commodity in a single invitation;
                                ``(ii) 5 percent, for the portion
                            of a contract to be awarded that is
                            greater than 25 percent, but not
                            greater than 40 percent, of the total
                            volume being procured for each
                            commodity in a single invitation; and
                                ``(iii) zero, for the portion of a
                            contract to be awarded that is greater
                            than 40 percent of the total volume
                            being procured for each commodity in a
                            single invitation.
                        ``(C) Treatment of preference.--A contract
                    awarded to a HUBZone small business concern
                    under a preference described in subparagraph
                    (B) shall not be counted toward the fulfillment
                    of any requirement partially set aside for
                    competition restricted to small business
                    concerns.''.
        (b) Definitions.--Section 3(p) of the Small Business Act
    (15 U.S.C. 632(p)), as amended by this Act, is amended--
                (1) in paragraph (5)(A)(i)(III)--
                        (A) in item (aa), by striking ``and'' at
                    the end; and
                        (B) by adding at the end the following:
                                                ``(cc) in the case
                                            of a contract for the
                                            procurement by the
                                            Secretary of
                                            Agriculture of
                                            agricultural
                                            commodities, none of
                                            the commodity being
                                            procured will be
                                            obtained by the prime
                                            contractor through a
                                            subcontract for the
                                            purchase of the
                                            commodity in
                                            substantially the final
                                            form in which it is to
                                            be supplied to the
                                            Government; and''; and
                (2) by adding at the end the following:
                ``(7) Agricultural commodity.--The term
            `agricultural commodity' has the same meaning as in
            section 102 of the Agricultural Trade Act of 1978 (7
            U.S.C. 5602).''.

    SEC. 613. HUBZONE REDESIGNATED AREAS.

        Section 3(p) of the Small Business Act (15 U.S.C. 632(p))
    is amended--
                (1) in paragraph (1)--
                        (A) in subparagraph (B), by striking ``or''
                    at the end;
                        (B) in subparagraph (C), by striking the
                    period at the end and inserting ``; or''; and
                        (C) by adding at the end the following:
                        ``(D) redesignated areas.''; and
                (2) in paragraph (4), by adding at the end the
            following:
                        ``(C) Redesignated area.--The term
                    `redesignated area' means any census tract that
                    ceases to be qualified under subparagraph (A)
                    and any nonmetropolitan county that ceases to
                    be qualified under subparagraph (B), except
                    that a census tract or a nonmetropolitan county
                    may be a `redesignated area' only for the 3-
                    year period following the date on which the
                    census tract or nonmetropolitan county ceased
                    to be so qualified.''.

    SEC. 614. COMMUNITY DEVELOPMENT.

        Section 3(p) of the Small Business Act (15 U.S.C. 632(p)),
    as amended by this Act, is amended--
                (1) in paragraph (3)--
                        (A) in subparagraph (B), by striking ``or''
                    at the end;
                        (B) in subparagraph (C), by striking the
                    period at the end and inserting ``; or''; and
                        (C) by adding at the end the following:
                        ``(D) a small business concern that is--
                                ``(i) wholly owned by a community
                            development corporation that has
                            received financial assistance under
                            Part 1 of Subchapter A of the Community
                            Economic Development Act of 1981 (42
                            U.S.C. 9805 et seq.); or
                                ``(ii) owned in part by 1 or more
                            community development corporations, if
                            all other owners are either United
                            States citizens or small business
                            concerns.''; and
                (2) in paragraph (5)(A)(i)(I)(aa), by striking
            ``subparagraph (A) or (B)'' and inserting
            ``subparagraph (A), (B), or (D)''.

    SEC. 615. REFERENCE CORRECTIONS.

        (a) Section 3.--Section 3(p)(5)(C) of the Small Business
    Act (15 U.S.C. 632(p)(5)(C)) is amended by striking ``subclause
    (IV) and (V) of subparagraph (A)(i)'' and inserting ``items
    (aa) and (bb) of subparagraph (A)(i)(III)''.
        (b) Section 8.--Section 8(d)(4)(D) of the Small Business
    Act (15 U.S.C. 637(d)(4)(D)) is amended by inserting
    ``qualified HUBZone small business concerns,'' after ``small
    business concerns,''.

          TITLE VII--NATIONAL WOMEN'S BUSINESS COUNCIL REAUTHORIZATION

    SEC. 701. SHORT TITLE.

        This title may be cited as the ``National Women's Business
    Council Reauthorization Act of 2000''.

    SEC. 702. MEMBERSHIP OF THE COUNCIL.

        Section 407 of the Women's Business Ownership Act of 1988
    (15 U.S.C. 631 note) is amended--
                (1) in subsection (a), by striking ``Not later''
            and all that follows through ``the President'' and
            inserting ``The President'';
                (2) in subsection (b)--
                        (A) by striking ``Not later'' and all that
                    follows through ``the Administrator'' and
                    inserting ``The Administrator''; and
                        (B) by striking ``the Assistant
                    Administrator of the Office of Women's Business
                    Ownership and'';
                (3) in subsection (d), by striking ``, except
            that'' and all that follows through the end of the
            subsection and inserting a period; and
                (4) in subsection (h), by striking ``Not later''
            and all that follows through ``the Administrator'' and
            inserting ``The Administrator''.

    SEC. 703. REPEAL OF PROCUREMENT PROJECT.

        Section 409 of the Women's Business Ownership Act of 1988
    (15 U.S.C. 631 note) is repealed.

    SEC. 704. STUDIES AND OTHER RESEARCH.

        Section 410 of the Women's Business Ownership Act of 1988
    (15 U.S.C. 631 note) is amended to read as follows:

    ``SEC. 409. STUDIES AND OTHER RESEARCH.

        ``(a) In General.--The Council may conduct such studies and
    other research relating to the award of Federal prime contracts
    and subcontracts to women-owned businesses, to access to credit
    and investment capital by women entrepreneurs, or to other
    issues relating to women-owned businesses, as the Council
    determines to be appropriate.
        ``(b) Contract Authority.--In conducting any study or other
    research under this section, the Council may contract with 1 or
    more public or private entities.''.

    SEC. 705. AUTHORIZATION OF APPROPRIATIONS.

        Section 411 of the Women's Business Ownership Act of 1988
    (15 U.S.C. 631 note) is amended to read as follows:

    ``SEC. 410. AUTHORIZATION OF APPROPRIATIONS.

        ``(a) In General.--There is authorized to be appropriated
    to carry out this title $1,000,000, for each of fiscal years
    2001 through 2003, of which $550,000 shall be available in each
    such fiscal year to carry out section 409.
        ``(b) Budget Review.--No amount made available under this
    section for any fiscal year may be obligated or expended by the
    Council before the date on which the Council reviews and
    approves the operating budget of the Council to carry out the
    responsibilities of the Council for that fiscal year.''.

                      TITLE VIII--MISCELLANEOUS PROVISIONS

    SEC. 801. LOAN APPLICATION PROCESSING.

        (a) Study.--The Administrator of the Small Business
    Administration shall conduct a study to determine the average
    time that the Administration requires to process an application
    for each type of loan or loan guarantee made under the Small
    Business Act (15 U.S.C. 631 et seq.).
        (b) Transmittal.--Not later than 1 year after the date of
    enactment of this Act, the Administrator shall transmit to
    Congress the results of the study conducted under subsection
    (a).

    SEC. 802. APPLICATION OF OWNERSHIP REQUIREMENTS.

        (a) Small Business Act.--Section 7(a) of the Small Business
    Act (15 U.S.C. 636(a)) is amended by adding at the end the
    following:
                ``(30) Ownership requirements.--Ownership
            requirements to determine the eligibility of a small
            business concern that applies for assistance under any
            credit program under this Act shall be determined
            without regard to any ownership interest of a spouse
            arising solely from the application of the community
            property laws of a State for purposes of determining
            marital interests.''.
        (b) Small Business Investment Act of 1958.--Section 502 of
    the Small Business Investment Act of 1958 (15 U.S.C. 696) is
    amended by adding at the end the following:
                ``(6) Ownership requirements.--Ownership
            requirements to determine the eligibility of a small
            business concern that applies for assistance under any
            credit program under this title shall be determined
            without regard to any ownership interest of a spouse
            arising solely from the application of the community
            property laws of a State for purposes of determining
            marital interests.''.

    SEC. 803. SUBCONTRACTING PREFERENCE FOR VETERANS.

        Section 8(d) of the Small Business Act (15 U.S.C. 637(d))
    is amended--
                (1) in paragraph (1), by inserting ``small business
            concerns owned and controlled by veterans,'' after
            ``small business concerns,'' the first place that term
            appears in each of the first and second sentences;
                (2) in paragraph (3)--
                        (A) in subparagraph (A), by inserting
                    ``small business concerns owned and controlled
                    by service-disabled veterans,'' after ``small
                    business concerns owned and controlled by
                    veterans,'' in each of the first and second
                    sentences; and
                        (B) in subparagraph (F), by inserting
                    ``small business concern owned and controlled
                    by service-disabled veterans,'' after ``small
                    business concern owned and controlled by
                    veterans,''; and
                (3) in each of paragraphs (4)(D), (4)(E), (6)(A),
            (6)(C), (6)(F), and (10)(B), by inserting ``small
            business concerns owned and controlled by service-
            disabled veterans,'' after ``small business concerns
            owned and controlled by veterans,''.

    SEC. 804. SMALL BUSINESS DEVELOPMENT CENTER PROGRAM FUNDING.

        (a) Authorization.--
                (1) In general.--Section 20(a)(1) of the Small
            Business Act (15 U.S.C. 631 note) is amended by
            striking ``For fiscal year 1985'' and all that follows
            through ``expended.'' and inserting the following:
            ``For fiscal year 2000 and each fiscal year thereafter,
            there are authorized to be appropriated such sums as
            may be necessary and appropriate, to remain available
            until expended, and to be available solely--
                ``(A) to carry out the Small Business Development
            Center Program under section 21, but not to exceed the
            annual funding level, as specified in section 21(a);
                ``(B) to pay the expenses of the National Small
            Business Development Center Advisory Board, as provided
            in section 21(i);
                ``(C) to pay the expenses of the information
            sharing system, as provided in section 21(c)(8);
                ``(D) to pay the expenses of the association
            referred to in section 21(a)(3)(A) for conducting the
            certification program, as provided in section 21(k)(2);
            and
                ``(E) to pay the expenses of the Administration,
            including salaries of examiners, for conducting
            examinations as part of the certification program
            conducted by the association referred to in section
            21(a)(3)(A).''.
                (2) Technical amendment.--Section 20(a) of the
            Small Business Act (15 U.S.C. 631 note) is amended by
            moving the margins of paragraphs (3) and (4), including
            subparagraphs (A) and (B) of paragraph (4), 2 ems to
            the left.
        (b) Funding Formula.--Section 21(a)(4)(C) of the Small
    Business Act (15 U.S.C. 648(a)(4)(C)) is amended to read as
    follows:
                ``(C) Funding formula.--
                        ``(i) In general.--Subject to clause (iii),
                    the amount of a formula grant received by a
                    State under this subparagraph shall be equal to
                    an amount determined in accordance with the
                    following formula:
                                ``(I) The annual amount made
                            available under section 20(a) for the
                            Small Business Development Center
                            Program, less any reductions made for
                            expenses authorized by clause (v) of
                            this subparagraph, shall be divided on
                            a pro rata basis, based on the
                            percentage of the population of each
                            State, as compared to the population of
                            the United States.
                                ``(II) If the pro rata amount
                            calculated under subclause (I) for any
                            State is less than the minimum funding
                            level under clause (iii), the
                            Administration shall determine the
                            aggregate amount necessary to achieve
                            that minimum funding level for each
                            such State.
                                ``(III) The aggregate amount
                            calculated under subclause (II) shall
                            be deducted from the amount calculated
                            under subclause (I) for States eligible
                            to receive more than the minimum
                            funding level. The deductions shall be
                            made on a pro rata basis, based on the
                            population of each such State, as
                            compared to the total population of all
                            such States.
                                ``(IV) The aggregate amount
                            deducted under subclause (III) shall be
                            added to the grants of those States
                            that are not eligible to receive more
                            than the minimum funding level in order
                            to achieve the minimum funding level
                            for each such State, except that the
                            eligible amount of a grant to any State
                            shall not be reduced to an amount below
                            the minimum funding level.
                        ``(ii) Grant determination.--The amount of
                    a grant that a State is eligible to apply for
                    under this subparagraph shall be the amount
                    determined under clause (i), subject to any
                    modifications required under clause (iii), and
                    shall be based on the amount available for the
                    fiscal year in which performance of the grant
                    commences, but not including amounts
                    distributed in accordance with clause (iv). The
                    amount of a grant received by a State under any
                    provision of this subparagraph shall not exceed
                    the amount of matching funds from sources other
                    than the Federal Government, as required under
                    subparagraph (A).
                        ``(iii) Minimum funding level.--The amount
                    of the minimum funding level for each State
                    shall be determined for each fiscal year based
                    on the amount made available for that fiscal
                    year to carry out this section, as follows:
                                ``(I) If the amount made available
                            is not less than $81,500,000 and not
                            more than $90,000,000, the minimum
                            funding level shall be $500,000.
                                ``(II) If the amount made available
                            is less than $81,500,000, the minimum
                            funding level shall be the remainder of
                            $500,000 minus a percentage of $500,000
                            equal to the percentage amount by which
                            the amount made available is less than
                            $81,500,000.
                                ``(III) If the amount made
                            available is more than $90,000,000, the
                            minimum funding level shall be the sum
                            of $500,000 plus a percentage of
                            $500,000 equal to the percentage amount
                            by which the amount made available
                            exceeds $90,000,000.
                        ``(iv) Distributions.--Subject to clause
                    (iii), if any State does not apply for, or use,
                    its full funding eligibility for a fiscal year,
                    the Administration shall distribute the
                    remaining funds as follows:
                                ``(I) If the grant to any State is
                            less than the amount received by that
                            State in fiscal year 2000, the
                            Administration shall distribute such
                            remaining funds, on a pro rata basis,
                            based on the percentage of shortage of
                            each such State, as compared to the
                            total amount of such remaining funds
                            available, to the extent necessary in
                            order to increase the amount of the
                            grant to the amount received by that
                            State in fiscal year 2000, or until
                            such funds are exhausted, whichever
                            first occurs.
                                ``(II) If any funds remain after
                            the application of subclause (I), the
                            remaining amount may be distributed as
                            supplemental grants to any State, as
                            the Administration determines, in its
                            discretion, to be appropriate, after
                            consultation with the association
                            referred to in subsection (a)(3)(A).
                        ``(v) Use of amounts.--
                                ``(I) In general.--Of the amounts
                            made available in any fiscal year to
                            carry out this section--
                                        ``(aa) not more than
                                    $500,000 may be used by the
                                    Administration to pay expenses
                                    enumerated in subparagraphs (B)
                                    through (D) of section
                                    20(a)(1); and
                                        ``(bb) not more than
                                    $500,000 may be used by the
                                    Administration to pay the
                                    examination expenses enumerated
                                    in section 20(a)(1)(E).
                                ``(II) Limitation.--No funds
                            described in subclause (I) may be used
                            for examination expenses under section
                            20(a)(1)(E) if the usage would reduce
                            the amount of grants made available
                            under clause (i)(I) of this
                            subparagraph to less than $85,000,000
                            (after excluding any amounts provided
                            in appropriations Acts for specific
                            institutions or for purposes other than
                            the general small business development
                            center program) or would further reduce
                            the amount of such grants below such
                            amount.
                        ``(vi) Exclusions.--Grants provided to a
                    State by the Administration or another Federal
                    agency to carry out subsection (a)(6) or
                    (c)(3)(G), or for supplemental grants set forth
                    in clause (iv)(II) of this subparagraph, shall
                    not be included in the calculation of maximum
                    funding for a State under clause (ii) of this
                    subparagraph.
                        ``(vii) Authorization of appropriations.--
                    There is authorized to be appropriated to carry
                    out this subparagraph $125,000,000 for each of
                    fiscal years 2001, 2002, and 2003.
                        ``(viii) State defined.--In this
                    subparagraph, the term `State' means each of
                    the several States, the District of Columbia,
                    the Commonwealth of Puerto Rico, the Virgin
                    Islands, Guam, and American Samoa.''.

    SEC. 805. SURETY BONDS.

        (a) Contract Amounts.--Section 411 of the Small Business
    Investment Act of 1958 (15 U.S.C. 694b) is amended--
                (1) in subsection (a)(1), by striking
            ``$1,250,000'' and inserting ``$2,000,000''; and
                (2) in subsection (e)(2), by striking
            ``$1,250,000'' and inserting ``$2,000,000''.
        (b) Extension of Certain Authority.--Section 207 of the
    Small Business Administration Reauthorization and Amendment Act
    of 1988 (15 U.S.C. 694b note) is amended by striking ``2000''
    and inserting ``2003''.

    SEC. 806. SIZE STANDARDS.

        (a) Industry Classifications.--Section 15(a) of the Small
    Business Act (15 U.S.C. 644(a)) is amended in the eighth
    sentence, by striking ``four-digit standard'' and all that
    follows through ``published'' and inserting ``definition of a
    `United States industry' under the North American Industry
    Classification System, as established''.
        (b) Annual Receipts.--Section 3(a)(1) of the Small Business
    Act (15 U.S.C. 632(a)(1)) is amended by striking ``$500,000''
    and inserting ``$750,000''.

    SEC. 807. NATIVE HAWAIIAN ORGANIZATIONS UNDER SECTION 8(A).

        Section 8(a)(15)(A) of the Small Business Act (15 U.S.C.
    637(a)(15)(A)) is amended to read as follows:
                ``(A) is a nonprofit corporation that has filed
            articles of incorporation with the director (or the
            designee thereof) of the Hawaii Department of Commerce
            and Consumer Affairs, or any successor agency,''.

    SEC. 808. NATIONAL VETERANS BUSINESS DEVELOPMENT CORPORATION
                        CORRECTION.

        Section 33(k) of the Small Business Act (15 U.S.C. 657c(k))
    is amended--
                (1) by striking paragraph (1) and inserting the
            following:
                ``(1) In general.--Subject to paragraph (2), there
            are authorized to be appropriated to the Corporation to
            carry out this section--
                        ``(A) $4,000,000 for fiscal year 2001;
                        ``(B) $4,000,000 for fiscal year 2002;
                        ``(C) $2,000,000 for fiscal year 2003; and
                        ``(D) $2,000,000 for fiscal year 2004.'';
                (2) in paragraph (2)(A), by striking ``2001'' each
            place it appears and inserting ``2002''; and
                (3) in paragraph (2)(B), by striking ``2002 or
            2003'' and inserting ``2003 or 2004''.

    SEC. 809. PRIVATE SECTOR RESOURCES FOR SCORE.

        Section 8(b)(1)(B) of the Small Business Act (15 U.S.C.
    637(b)(1)(B)) is amended by adding at the end the following:
    ``Notwithstanding any other provision of law, SCORE may solicit
    cash and in-kind contributions from the private sector to be
    used to carry out its functions under this Act, and may use
    payments made by the Administration pursuant to this
    subparagraph for such solicitation.''.

    SEC. 810. CONTRACT DATA COLLECTION.

        Section 15 of the Small Business Act (15 U.S.C. 644) is
    amended by adding at the end the following new subsection:
        ``(p) Database, Analysis, and Annual Report With Respect to
    Bundled Contracts.--
                ``(1) Bundled contract defined.--In this
            subsection, the term `bundled contract' has the meaning
            given such term in section 3(o)(1).
                ``(2) Database.--
                        ``(A) In general.--Not later than 180 days
                    after the date of the enactment of this
                    subsection, the Administrator of the Small
                    Business Administration shall develop and shall
                    thereafter maintain a database containing data
                    and information regarding--
                                ``(i) each bundled contract awarded
                            by a Federal agency; and
                                ``(ii) each small business concern
                            that has been displaced as a prime
                            contractor as a result of the award of
                            such a contract.
                ``(3) Analysis.--For each bundled contract that is
            to be recompeted as a bundled contract, the
            Administrator shall determine--
                        ``(A) the amount of savings and benefits
                    (in accordance with subsection (e)) achieved
                    under the bundling of contract requirements;
                    and
                        ``(B) whether such savings and benefits
                    will continue to be realized if the contract
                    remains bundled, and whether such savings and
                    benefits would be greater if the procurement
                    requirements were divided into separate
                    solicitations suitable for award to small
                    business concerns.
                ``(4) Annual report on contract bundling.--
                        ``(A) In general.--Not later than 1 year
                    after the date of the enactment of this
                    paragraph, and annually in March thereafter,
                    the Administration shall transmit a report on
                    contract bundling to the Committees on Small
                    Business of the House of Representatives and
                    the Senate.
                        ``(B) Contents.--Each report transmitted
                    under subparagraph (A) shall include--
                                ``(i) data on the number, arranged
                            by industrial classification, of small
                            business concerns displaced as prime
                            contractors as a result of the award of
                            bundled contracts by Federal agencies;
                            and
                                ``(ii) a description of the
                            activities with respect to previously
                            bundled contracts of each Federal
                            agency during the preceding year,
                            including--
                                        ``(I) data on the number
                                    and total dollar amount of all
                                    contract requirements that were
                                    bundled; and
                                        ``(II) with respect to each
                                    bundled contract, data or
                                    information on--
                                                ``(aa) the
                                            justification for the
                                            bundling of contract
                                            requirements;
                                                ``(bb) the cost
                                            savings realized by
                                            bundling the contract
                                            requirements over the
                                            life of the contract;
                                                ``(cc) the extent
                                            to which maintaining
                                            the bundled status of
                                            contract requirements
                                            is projected to result
                                            in continued cost
                                            savings;
                                                ``(dd) the extent
                                            to which the bundling
                                            of contract
                                            requirements complied
                                            with the contracting
                                            agency's small business
                                            subcontracting plan,
                                            including the total
                                            dollar value awarded to
                                            small business concerns
                                            as subcontractors and
                                            the total dollar value
                                            previously awarded to
                                            small business concerns
                                            as prime contractors;
                                            and
                                                ``(ee) the impact
                                            of the bundling of
                                            contract requirements
                                            on small business
                                            concerns unable to
                                            compete as prime
                                            contractors for the
                                            consolidated
                                            requirements and on the
                                            industries of such
                                            small business
                                            concerns, including a
                                            description of any
                                            changes to the
                                            proportion of any such
                                            industry that is
                                            composed of small
                                            business concerns.
                ``(5) Access to data.--
                        ``(A) Federal procurement data system.--To
                    assist in the implementation of this section,
                    the Administration shall have access to
                    information collected through the Federal
                    Procurement Data System.
                        ``(B) Agency procurement data sources.--To
                    assist in the implementation of this section,
                    the head of each contracting agency shall
                    provide, upon request of the Administration,
                    procurement information collected through
                    existing agency data collection sources.''.

    SEC. 811. PROCUREMENT PROGRAM FOR WOMEN-OWNED SMALL BUSINESS CONCERNS.

        Section 8 of the Small Business Act (15 U.S.C. 637) is
    amended by adding at the end the following:
        ``(m) Procurement Program for Women-Owned Small Business
    Concerns.--
                ``(1) Definitions.--In this subsection, the
            following definitions apply:
                        ``(A) Contracting officer.--The term
                    `contracting officer' has the meaning given
                    such term in section 27(f)(5) of the Office of
                    Federal Procurement Policy Act (41 U.S.C.
                    423(f)(5)).
                        ``(B) Small business concern owned and
                    controlled by women.--The term `small business
                    concern owned and controlled by women' has the
                    meaning given such term in section 3(n), except
                    that ownership shall be determined without
                    regard to any community property law.
                ``(2) Authority to restrict competition.--In
            accordance with this subsection, a contracting officer
            may restrict competition for any contract for the
            procurement of goods or services by the Federal
            Government to small business concerns owned and
            controlled by women, if--
                        ``(A) each of the concerns is not less than
                    51 percent owned by 1 or more women who are
                    economically disadvantaged (and such ownership
                    is determined without regard to any community
                    property law);
                        ``(B) the contracting officer has a
                    reasonable expectation that 2 or more small
                    business concerns owned and controlled by women
                    will submit offers for the contract;
                        ``(C) the contract is for the procurement
                    of goods or services with respect to an
                    industry identified by the Administrator
                    pursuant to paragraph (3);
                        ``(D) the anticipated award price of the
                    contract (including options) does not exceed--
                                ``(i) $5,000,000, in the case of a
                            contract assigned an industrial
                            classification code for manufacturing;
                            or
                                ``(ii) $3,000,000, in the case of
                            all other contracts;
                        ``(E) in the estimation of the contracting
                    officer, the contract award can be made at a
                    fair and reasonable price; and
                        ``(F) each of the concerns--
                                ``(i) is certified by a Federal
                            agency, a State government, or a
                            national certifying entity approved by
                            the Administrator, as a small business
                            concern owned and controlled by women;
                            or
                                ``(ii) certifies to the contracting
                            officer that it is a small business
                            concern owned and controlled by women
                            and provides adequate documentation, in
                            accordance with standards established
                            by the Administration, to support such
                            certification.
                ``(3) Waiver.--With respect to a small business
            concern owned and controlled by women, the
            Administrator may waive subparagraph (2)(A) if the
            Administrator determines that the concern is in an
            industry in which small business concerns owned and
            controlled by women are substantially underrepresented.
                ``(4) Identification of industries.--The
            Administrator shall conduct a study to identify
            industries in which small business concerns owned and
            controlled by women are underrepresented with respect
            to Federal procurement contracting.
                ``(5) Enforcement; penalties.--
                        ``(A) Verification of eligibility.--In
                    carrying out this subsection, the Administrator
                    shall establish procedures relating to--
                                ``(i) the filing, investigation,
                            and disposition by the Administration
                            of any challenge to the eligibility of
                            a small business concern to receive
                            assistance under this subsection
                            (including a challenge, filed by an
                            interested party, relating to the
                            veracity of a certification made or
                            information provided to the
                            Administration by a small business
                            concern under paragraph (2)(F)); and
                                ``(ii) verification by the
                            Administrator of the accuracy of any
                            certification made or information
                            provided to the Administration by a
                            small business concern under paragraph
                            (2)(F).
                        ``(B) Examinations.--The procedures
                    established under subparagraph (A) may provide
                    for program examinations (including random
                    program examinations) by the Administrator of
                    any small business concern making a
                    certification or providing information to the
                    Administrator under paragraph (2)(F).
                        ``(C) Penalties.--In addition to the
                    penalties described in section 16(d), any small
                    business concern that is determined by the
                    Administrator to have misrepresented the status
                    of that concern as a small business concern
                    owned and controlled by women for purposes of
                    this subsection, shall be subject to--
                                ``(i) section 1001 of title 18,
                            United States Code; and
                                ``(ii) sections 3729 through 3733
                            of title 31, United States Code.
                ``(6) Provision of data.--Upon the request of the
            Administrator, the head of any Federal department or
            agency shall promptly provide to the Administrator such
            information as the Administrator determines to be
            necessary to carry out this subsection.''.
                                       John Edward Porter,
                                       C.W. Bill Young,
                                       Henry Bonilla,
                                       Ernest J. Istook, Jr.,
                                       Dan Miller,
                                       Jay Dickey,
                                       Roger F. Wicker,
                                       Anne M. Northup,
                                       Randy ``Duke'' Cunningham,
                                       David R. Obey,
                                       Steny H. Hoyer,
                                       Nancy Pelosi,
                                       Nita M. Lowey,
                                       Rosa L. DeLauro,
                                       Jesse L. Jackson, Jr.,
                                               (Except elimination of
                                                   LIHEAP and CCDBG
                                                   advanced funding;
                                                   immigration and
                                                   charitable choice
                                                   provisions),
                                     Managers on the Part of the House.

                                       Arlen Specter,
                                       Thad Cochran,
                                       Slade Gorton,
                                       Judd Gregg,
                                       Kay Bailey Hutchison,
                                       Ted Stevens,
                                       Pete V. Domenici,
                                       Tom Harkin,
                                       Ernest F. Hollings,
                                       Daniel K. Inouye,
                                       Harry Reid,
                                       Herb Kohl,
                                       Patty Murray,
                                       Dianne Feinstein,
                                       Robert C. Byrd,
                                    Managers on the Part of the Senate.