[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\
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      \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.
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      \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.
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      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\
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      \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.
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      \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.
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      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.
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      \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.
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      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\
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      \33\ Sec. 6715(a).
      \34\ P.L. 105-206, sec. 3306.
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      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.
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      \35\ Secs. 6715(a) and 6631.
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      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\
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      \36\ Sec. 6103(b)(2)(A).
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            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
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      \37\ Sec. 6103(b)(2)(B).
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            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\
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      \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.
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      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.
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      \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.
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      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.
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      \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;
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      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\
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      \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\
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      \43\ Id. at 316.
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      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.
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      \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.
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      \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.
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      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\
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      \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.).
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            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.
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      \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).
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            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.
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      \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.
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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).
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      \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\
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      \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\
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      \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\
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      \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.

                                  
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