    [106th Congress Public Law 554]
    [From the U.S. Government Publishing Office]

    <DOC>
    [DOCID: f:publ554.106]

    [[Page 114 STAT. 2763]]

    Public Law 106-554
    106th Congress

                                     An Act

          Making <<NOTE: Dec. 21, 2000 -  [H.R. 4577]>>  consolidated
     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 <<NOTE: Consolidated Appropriations
    Act, 2001.>> assembled,

        Section 1. <<NOTE: Incorporation by reference.>> (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, except
            that the text of H.R. 5666, as so enacted, shall not include
            section 123 (relating to the enactment of H.R. 4904).
                (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) <<NOTE: Publication. 1 USC 112 note.>>  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.
    ---------------------------------------------------------------------------
        See Endnote on 114 Stat. 2764.
    ---------------------------------------------------------------------------

        (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

    [[Page 114 STAT. 2764]]

    and receipts legislation for fiscal year 2001 under section 252 of that
    Act to zero.
        (c) This Act may be cited as the ``Consolidated Appropriations Act,
    2001''.

        Approved December 21, 2000.

    LEGISLATIVE HISTORY--H.R. 4577 (S. 2553):
    ---------------------------------------------------------------------------

    HOUSE REPORTS: Nos. 106-645 (Comm. on Appropriations) and 106-1033
    (Comm. of Conference).
    SENATE REPORTS: No. 106-293 accompanying S. 2553 (Comm. on
    Appropriations).
    CONGRESSIONAL RECORD, Vol. 146 (2000):
                June 8, 12-14, considered and passed House.
                June 22, 23, 26-30, considered and passed Senate, amended.
                Dec. 15, House and Senate agreed to conference report.
    WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 36 (2000):
                Dec. 21, Presidential remarks and statement.
    ---------------------------------------------------------------------------

    __________
    ---------------------------------------------------------------------------

        ENDNOTE: The following appendixes were added pursuant to the
    provisions of section 1 of this Act (114 Stat. 2763).

                                      <all>

    [[Page 114 STAT. 2762A-1]]

                                TABLE OF CONTENTS

                      The table of contents is as follows:

                              APPENDIX A--H.R. 5656

                              APPENDIX B--H.R. 5657

                              APPENDIX C--H.R. 5658

                              APPENDIX D--H.R. 5666

                              APPENDIX D-1--S. 2273

                              APPENDIX D-2--S. 2885

                              APPENDIX E--H.R. 5660

                              APPENDIX F--H.R. 5661

                              APPENDIX G--H.R. 5662

                              APPENDIX H--H.R. 5663

                              APPENDIX I--H.R. 5667

    [[Page 114 STAT. 2763A-3]]

                              APPENDIX A--H.R. 5656

    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

    [[Page 114 STAT. 2763A-4]]

    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

    [[Page 114 STAT. 2763A-5]]

    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.

    [[Page 114 STAT. 2763A-6]]

                      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
    nonadministrative 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

    [[Page 114 STAT. 2763A-7]]

    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 the Treasury, for expenses of operation and
    administration of the Black Lung Benefits program as authorized

    [[Page 114 STAT. 2763A-8]]

    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;

    [[Page 114 STAT. 2763A-9]]

                (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 for obligation for the period July
    1, 2001 through June 30, 2002, for Occupational Employment Statistics.

    [[Page 114 STAT. 2763A-10]]

                             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

    [[Page 114 STAT. 2763A-11]]

    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)''.

    [[Page 114 STAT. 2763A-12]]

        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

    [[Page 114 STAT. 2763A-13]]

    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

    [[Page 114 STAT. 2763A-14]]

    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

    [[Page 114 STAT. 2763A-15]]

    $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.

    [[Page 114 STAT. 2763A-16]]

                 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.

    [[Page 114 STAT. 2763A-17]]

                    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

    [[Page 114 STAT. 2763A-18]]

    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 1 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.

    [[Page 114 STAT. 2763A-19]]

        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

    [[Page 114 STAT. 2763A-20]]

    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 Outcome 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,

    [[Page 114 STAT. 2763A-21]]

    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.

    [[Page 114 STAT. 2763A-22]]

                        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

    [[Page 114 STAT. 2763A-23]]

    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.

    [[Page 114 STAT. 2763A-24]]

                       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

    [[Page 114 STAT. 2763A-25]]

    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

    [[Page 114 STAT. 2763A-26]]

    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.

    [[Page 114 STAT. 2763A-27]]

        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.

    [[Page 114 STAT. 2763A-28]]

        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

    [[Page 114 STAT. 2763A-29]]

            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

    [[Page 114 STAT. 2763A-30]]

                (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

    [[Page 114 STAT. 2763A-31]]

    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

    [[Page 114 STAT. 2763A-32]]

    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

    [[Page 114 STAT. 2763A-33]]

    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

    [[Page 114 STAT. 2763A-34]]

    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

    [[Page 114 STAT. 2763A-35]]

    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

    [[Page 114 STAT. 2763A-36]]

    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 3 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

    [[Page 114 STAT. 2763A-37]]

    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,

    [[Page 114 STAT. 2763A-38]]

    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

    [[Page 114 STAT. 2763A-39]]

    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

    [[Page 114 STAT. 2763A-40]]

    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

    [[Page 114 STAT. 2763A-41]]

    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.

    [[Page 114 STAT. 2763A-42]]

        (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;

    [[Page 114 STAT. 2763A-43]]

                (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,

    [[Page 114 STAT. 2763A-44]]

    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:

    [[Page 114 STAT. 2763A-45]]

                ``(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 1 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

    [[Page 114 STAT. 2763A-46]]

                                    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,''; and
                (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

    [[Page 114 STAT. 2763A-47]]

    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''; and
                (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

    [[Page 114 STAT. 2763A-48]]

    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

    [[Page 114 STAT. 2763A-49]]

            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

    [[Page 114 STAT. 2763A-50]]

    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.

    [[Page 114 STAT. 2763A-51]]

                (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

    [[Page 114 STAT. 2763A-52]]

                                    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

    [[Page 114 STAT. 2763A-53]]

                          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

    [[Page 114 STAT. 2763A-54]]

                    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 in 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

    [[Page 114 STAT. 2763A-55]]

    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

    [[Page 114 STAT. 2763A-56]]

    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)).

    [[Page 114 STAT. 2763A-57]]

                (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 Education 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

    [[Page 114 STAT. 2763A-58]]

    three 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 three grants in accordance with subsections (a) through (c),
    such three-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.

    [[Page 114 STAT. 2763A-59]]

    ``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

    [[Page 114 STAT. 2763A-60]]

    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 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

    [[Page 114 STAT. 2763A-61]]

    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--

    [[Page 114 STAT. 2763A-62]]

                              ``(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.

    [[Page 114 STAT. 2763A-63]]

                   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

    [[Page 114 STAT. 2763A-64]]

    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,

    [[Page 114 STAT. 2763A-65]]

    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.

    [[Page 114 STAT. 2763A-66]]

                            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

    [[Page 114 STAT. 2763A-67]]

    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

    [[Page 114 STAT. 2763A-68]]

    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

    [[Page 114 STAT. 2763A-69]]

    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''.

    [[Page 114 STAT. 2763A-70]]

        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

    [[Page 114 STAT. 2763A-71]]

    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.

    [[Page 114 STAT. 2763A-72]]

        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. (a) Human Papillomavirus.--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 1 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 1 year after the effective date of this section,
            and shall develop a final report not later than 3 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;

    [[Page 114 STAT. 2763A-73]]

                        ``(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.''.

        (b) 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

    [[Page 114 STAT. 2763A-74]]

                        ``(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 Act (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. 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

    SEC. 601. SHORT TITLE.

        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''.

    [[Page 114 STAT. 2763A-75]]

     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''.

    [[Page 114 STAT. 2763A-76]]

        (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 one 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.

    [[Page 114 STAT. 2763A-77]]

    ``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 one in four 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.

    [[Page 114 STAT. 2763A-78]]

    ``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) home-schooled 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

    [[Page 114 STAT. 2763A-79]]

    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;

    [[Page 114 STAT. 2763A-80]]

                (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 two 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.

    [[Page 114 STAT. 2763A-81]]

    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;

    [[Page 114 STAT. 2763A-82]]

                        (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

    [[Page 114 STAT. 2763A-83]]

    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 three 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,

    [[Page 114 STAT. 2763A-84]]

            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--

    [[Page 114 STAT. 2763A-85]]

                (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
    two 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.

    [[Page 114 STAT. 2763A-86]]

                        (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;

    [[Page 114 STAT. 2763A-87]]

                (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.

    [[Page 114 STAT. 2763A-88]]

                (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

    [[Page 114 STAT. 2763A-89]]

            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.

    [[Page 114 STAT. 2763A-90]]

        ``(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

    [[Page 114 STAT. 2763A-91]]

            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

    [[Page 114 STAT. 2763A-92]]

            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''.

    [[Page 114 STAT. 2763A-93]]

                              APPENDIX B--H.R. 5657

    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.

    [[Page 114 STAT. 2763A-94]]

                  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.

    [[Page 114 STAT. 2763A-95]]

                         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:

    [[Page 114 STAT. 2763A-96]]

        ``(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'').

    [[Page 114 STAT. 2763A-97]]

        (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

    [[Page 114 STAT. 2763A-98]]

    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

    [[Page 114 STAT. 2763A-99]]

    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

    [[Page 114 STAT. 2763A-100]]

    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 multiyear 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.

    [[Page 114 STAT. 2763A-101]]

        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, 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.

    [[Page 114 STAT. 2763A-102]]

                            administrative provision

        Sec. 105. During fiscal year 2001 the Secretary of Defense shall
    provide protective services on a nonreimbursable 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

    [[Page 114 STAT. 2763A-103]]

    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

    [[Page 114 STAT. 2763A-104]]

            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.

    [[Page 114 STAT. 2763A-105]]

                (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;

    [[Page 114 STAT. 2763A-106]]

                        (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.

    [[Page 114 STAT. 2763A-107]]

        (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.

    [[Page 114 STAT. 2763A-108]]

                            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

    [[Page 114 STAT. 2763A-109]]

    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

    [[Page 114 STAT. 2763A-110]]

    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.

    [[Page 114 STAT. 2763A-111]]

                (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

    [[Page 114 STAT. 2763A-112]]

    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,

    [[Page 114 STAT. 2763A-113]]

    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

    [[Page 114 STAT. 2763A-114]]

    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

    [[Page 114 STAT. 2763A-115]]

                (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,

    [[Page 114 STAT. 2763A-116]]

    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

    [[Page 114 STAT. 2763A-117]]

    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

    [[Page 114 STAT. 2763A-118]]

    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.

    [[Page 114 STAT. 2763A-119]]

        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--

    [[Page 114 STAT. 2763A-120]]

                (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 two 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.--

    [[Page 114 STAT. 2763A-121]]

                (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 nine members as follows:
                        (A) Two members appointed by the Speaker of the
                    House of Representatives, one of whom shall be
                    designated by the Majority Leader of the House of
                    Representatives and one of whom shall be designated by
                    the Minority Leader of the House of Representatives.
                        (B) Two members appointed by the President pro
                    tempore of the Senate, one of whom shall be designated
                    by the Majority Leader of the Senate and one of whom
                    shall be designated by the Minority Leader of the
                    Senate.
                        (C) The Librarian of Congress.
                        (D) Four 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

    [[Page 114 STAT. 2763A-122]]

                              (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

    [[Page 114 STAT. 2763A-123]]

            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 four 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

    [[Page 114 STAT. 2763A-124]]

    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''.

    [[Page 114 STAT. 2763A-125]]

                              APPENDIX C--H.R. 5658

    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.

    [[Page 114 STAT. 2763A-126]]

                           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

    [[Page 114 STAT. 2763A-127]]

    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

    [[Page 114 STAT. 2763A-128]]

    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;

    [[Page 114 STAT. 2763A-129]]

    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

    [[Page 114 STAT. 2763A-130]]

    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.

    [[Page 114 STAT. 2763A-131]]

                            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

    [[Page 114 STAT. 2763A-132]]

    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

    [[Page 114 STAT. 2763A-133]]

    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.

    [[Page 114 STAT. 2763A-134]]

        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

    [[Page 114 STAT. 2763A-135]]

    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

    [[Page 114 STAT. 2763A-136]]

    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

    [[Page 114 STAT. 2763A-137]]

    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
    expended, 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.

    [[Page 114 STAT. 2763A-138]]

                               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 Advisers 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

    [[Page 114 STAT. 2763A-139]]

    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 counter-
    narcotics 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

    [[Page 114 STAT. 2763A-140]]

    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.

    [[Page 114 STAT. 2763A-141]]

                        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,
    United States Courthouse; District

    [[Page 114 STAT. 2763A-142]]

    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, United
    States Courthouse; Montana, Eureka/Roosville, Border Station; Virginia,
    Richmond, United States Courthouse; Washington, Seattle, United States
    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 United States Courthouse,
                    $18,434,000
                Pennsylvania:
                        Pittsburgh, United States 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

    [[Page 114 STAT. 2763A-143]]

                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, United States Courthouse Annex; Florida, Miami,
    United States Courthouse; Massachusetts, Springfield, United States
    Courthouse; New York, Buffalo, United States 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

    [[Page 114 STAT. 2763A-144]]

    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.

    [[Page 114 STAT. 2763A-145]]

                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
    Governmentwide benefits and savings, may be repaid to this Fund from any
    savings actually incurred by these projects or other funding, to the
    extent feasible.

    [[Page 114 STAT. 2763A-146]]

        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

    [[Page 114 STAT. 2763A-147]]

    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.

    [[Page 114 STAT. 2763A-148]]

        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.

    [[Page 114 STAT. 2763A-149]]

                         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.

    [[Page 114 STAT. 2763A-150]]

          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.

    [[Page 114 STAT. 2763A-151]]

        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.

    [[Page 114 STAT. 2763A-152]]

        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

    [[Page 114 STAT. 2763A-153]]

    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,

    [[Page 114 STAT. 2763A-154]]

    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 of 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,

    [[Page 114 STAT. 2763A-155]]

    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

    [[Page 114 STAT. 2763A-156]]

    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;

    [[Page 114 STAT. 2763A-157]]

    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

    [[Page 114 STAT. 2763A-158]]

                    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,

    [[Page 114 STAT. 2763A-159]]

    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).

    [[Page 114 STAT. 2763A-160]]

        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

    [[Page 114 STAT. 2763A-161]]

    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.

    [[Page 114 STAT. 2763A-162]]

        (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.

    [[Page 114 STAT. 2763A-163]]

        (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

    [[Page 114 STAT. 2763A-164]]

    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 (hereafter 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 (hereafter 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

    [[Page 114 STAT. 2763A-165]]

                        (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

    [[Page 114 STAT. 2763A-166]]

    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

    [[Page 114 STAT. 2763A-167]]

    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:

    [[Page 114 STAT. 2763A-168]]

      ``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 CONVICTED 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

    [[Page 114 STAT. 2763A-169]]

    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--

    [[Page 114 STAT. 2763A-170]]

                ``(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''.

    [[Page 114 STAT. 2763A-171]]

                              APPENDIX D--H.R. 5666

    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'';

    [[Page 114 STAT. 2763A-172]]

                (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:

    [[Page 114 STAT. 2763A-173]]

        ``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

    [[Page 114 STAT. 2763A-174]]

    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

    [[Page 114 STAT. 2763A-175]]

    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

    [[Page 114 STAT. 2763A-176]]

    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 25 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 fisheries 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

    [[Page 114 STAT. 2763A-177]]

                (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.

    [[Page 114 STAT. 2763A-178]]

                (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 10
            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

    [[Page 114 STAT. 2763A-179]]

    and Senate Appropriations Committee within 6 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''--

    [[Page 114 STAT. 2763A-180]]

                        (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

    [[Page 114 STAT. 2763A-181]]

    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,

    [[Page 114 STAT. 2763A-182]]

    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,

    [[Page 114 STAT. 2763A-183]]

    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;

    [[Page 114 STAT. 2763A-184]]

    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

    [[Page 114 STAT. 2763A-185]]

            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--

    [[Page 114 STAT. 2763A-186]]

                        (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 2 years
    after the date of the enactment of this Act.
        (g) Environmental Review.--Not later than 6 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

    [[Page 114 STAT. 2763A-187]]

    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), D.C. 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), D.C. Code), as amended by section 133 of the
    District of Columbia Appropriations Act, 1990, is amended--

    [[Page 114 STAT. 2763A-188]]

                (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.

    [[Page 114 STAT. 2763A-189]]

        (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. (a) 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), D.C. 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.

    [[Page 114 STAT. 2763A-190]]

                              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.

    [[Page 114 STAT. 2763A-191]]

                                     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 30 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.

    [[Page 114 STAT. 2763A-192]]

                              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

    [[Page 114 STAT. 2763A-193]]

    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.

    [[Page 114 STAT. 2763A-194]]

                                    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

    [[Page 114 STAT. 2763A-195]]

    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), respectively; 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 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

    [[Page 114 STAT. 2763A-196]]

            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 enactment of this
    paragraph, and who has on such date or thereafter acquired 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

    [[Page 114 STAT. 2763A-197]]

                    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 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

    [[Page 114 STAT. 2763A-198]]

                    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 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 103d
    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):

    [[Page 114 STAT. 2763A-199]]

                (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:

    [[Page 114 STAT. 2763A-200]]

                        (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

    [[Page 114 STAT. 2763A-201]]

    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;

    [[Page 114 STAT. 2763A-202]]

                              ``(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.

    [[Page 114 STAT. 2763A-203]]

        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

    [[Page 114 STAT. 2763A-204]]

                        (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 5-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 the 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.--

    [[Page 114 STAT. 2763A-205]]

                (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. 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

    [[Page 114 STAT. 2763A-206]]

    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

    [[Page 114 STAT. 2763A-207]]

            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. 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.

    [[Page 114 STAT. 2763A-208]]

        (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.

    [[Page 114 STAT. 2763A-209]]

        (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

    [[Page 114 STAT. 2763A-210]]

            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 one 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 20 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 title 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 chapter 53 of title 49, United
    States Code, during the 6 months prior to the effective date of this
    Act: Provided,

    [[Page 114 STAT. 2763A-211]]

    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.

    [[Page 114 STAT. 2763A-212]]

                           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.

    [[Page 114 STAT. 2763A-213]]

        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.

    [[Page 114 STAT. 2763A-214]]

                       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

    [[Page 114 STAT. 2763A-215]]

    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

    [[Page 114 STAT. 2763A-216]]

            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

    [[Page 114 STAT. 2763A-217]]

                              ``(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

    [[Page 114 STAT. 2763A-218]]

    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 24 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.).

    [[Page 114 STAT. 2763A-219]]

                (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.

    [[Page 114 STAT. 2763A-220]]

                ``(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.

    [[Page 114 STAT. 2763A-221]]

                ``(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, Genesee 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--

    [[Page 114 STAT. 2763A-222]]

                (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
            storm water 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'').

    [[Page 114 STAT. 2763A-223]]

                (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

    [[Page 114 STAT. 2763A-224]]

            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 Rivers 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

    [[Page 114 STAT. 2763A-225]]

            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

    [[Page 114 STAT. 2763A-226]]

                ``(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 nine 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;
                ``(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

    [[Page 114 STAT. 2763A-227]]

            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.

    [[Page 114 STAT. 2763A-228]]

        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.

    [[Page 114 STAT. 2763A-229]]

        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. 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 totaling 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

    [[Page 114 STAT. 2763A-230]]

    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

    [[Page 114 STAT. 2763A-231]]

    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 7 CFR
    3015, 3019, and 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'),

    [[Page 114 STAT. 2763A-232]]

                    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.''.

    [[Page 114 STAT. 2763A-233]]

        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 The maximum percentage allowable is:......
        in fiscal year:
            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

    [[Page 114 STAT. 2763A-234]]

                    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 The maximum percentage allowable is:......
        in fiscal year:
            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 The maximum percentage allowable is:......
        in fiscal year:
            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.

    [[Page 114 STAT. 2763A-235]]

        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.

    [[Page 114 STAT. 2763A-236]]

                        ``(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

    [[Page 114 STAT. 2763A-237]]

                        ``(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

    [[Page 114 STAT. 2763A-238]]

                                        ``(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 12 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--

    [[Page 114 STAT. 2763A-239]]

                (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.'';

    [[Page 114 STAT. 2763A-240]]

                (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;

    [[Page 114 STAT. 2763A-241]]

                (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 5-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--

    [[Page 114 STAT. 2763A-242]]

                        (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.

    [[Page 114 STAT. 2763A-243]]

                (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

    [[Page 114 STAT. 2763A-244]]

            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

    [[Page 114 STAT. 2763A-245]]

    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:

    [[Page 114 STAT. 2763A-246]]

        ``(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

    [[Page 114 STAT. 2763A-247]]

            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)(ii).

        (C) Effective on the date on which the Secretary of Commerce makes
    the certification described in subparagraph (b)(2), the following
    provisions are repealed:

    [[Page 114 STAT. 2763A-248]]

                (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

    [[Page 114 STAT. 2763A-249]]

    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 one
            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

    [[Page 114 STAT. 2763A-250]]

    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 six 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.

    [[Page 114 STAT. 2763A-251]]

        (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,

    [[Page 114 STAT. 2763A-252]]

            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

    [[Page 114 STAT. 2763A-253]]

    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.

    [[Page 114 STAT. 2763A-254]]

        (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

    SEC. 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:

    [[Page 114 STAT. 2763A-255]]

                (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 1 year, two shall serve for terms of 2 years, and two shall
    serve for terms of 3 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 6
    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

    [[Page 114 STAT. 2763A-256]]

                    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

    [[Page 114 STAT. 2763A-257]]

    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 six of the
    nine 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--

    [[Page 114 STAT. 2763A-258]]

                (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

    SEC. 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

    [[Page 114 STAT. 2763A-259]]

            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).

    [[Page 114 STAT. 2763A-260]]

        (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

    [[Page 114 STAT. 2763A-261]]

                              ``(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.--

    [[Page 114 STAT. 2763A-262]]

                        ``(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

    [[Page 114 STAT. 2763A-263]]

                    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--

    [[Page 114 STAT. 2763A-264]]

                ``(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 three-fourths
                          of the funds appropriated pursuant to this section
                          and consistent with the long-standing practice of
                          the Tribes

    [[Page 114 STAT. 2763A-265]]

                          and other local entities and communities to work
                          together to use their respective water rights and
                          resources for mutual benefit, at least three-
                          fourths 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 one-third of the funds referred to in clause
                          (i) for municipal or rural water development and
                          not less than two-thirds 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.

    [[Page 114 STAT. 2763A-266]]

    ``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

    SEC. 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

    [[Page 114 STAT. 2763A-267]]

                (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

    [[Page 114 STAT. 2763A-268]]

                    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

    [[Page 114 STAT. 2763A-269]]

                        (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

    [[Page 114 STAT. 2763A-270]]

                        ``(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 an 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 an 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;

    [[Page 114 STAT. 2763A-271]]

                ``(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 cochairperson
            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;
                ``(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;

    [[Page 114 STAT. 2763A-272]]

                        ``(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
            5, 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

    [[Page 114 STAT. 2763A-273]]

                    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;

    [[Page 114 STAT. 2763A-274]]

                        ``(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--

    [[Page 114 STAT. 2763A-275]]

                        ``(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

    [[Page 114 STAT. 2763A-276]]

                        ``(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

    [[Page 114 STAT. 2763A-277]]

                        ``(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.--

    [[Page 114 STAT. 2763A-278]]

                ``(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 one 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

    [[Page 114 STAT. 2763A-279]]

                        ``(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 one 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

    [[Page 114 STAT. 2763A-280]]

    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.

    [[Page 114 STAT. 2763A-281]]

        ``(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

    SEC. 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

    [[Page 114 STAT. 2763A-282]]

                (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 one 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.''.

    [[Page 114 STAT. 2763A-283]]

    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

    [[Page 114 STAT. 2763A-284]]

                        (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

    [[Page 114 STAT. 2763A-285]]

            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 selection, 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 Effect on Repayment Methodology.--In
    accordance with the last sentence of section 302(a)(3)

    [[Page 114 STAT. 2763A-286]]

    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.

    [[Page 114 STAT. 2763A-287]]

        ``(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

    [[Page 114 STAT. 2763A-288]]

            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

    [[Page 114 STAT. 2763A-289]]

    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 one 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

    [[Page 114 STAT. 2763A-290]]

    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.--

    [[Page 114 STAT. 2763A-291]]

                        ``(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
                              (iii) 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--

    [[Page 114 STAT. 2763A-292]]

                        ``(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

    [[Page 114 STAT. 2763A-293]]

                    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

    SEC. 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.

    [[Page 114 STAT. 2763A-294]]

    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

    [[Page 114 STAT. 2763A-295]]

                    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.--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;

    [[Page 114 STAT. 2763A-296]]

                (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, nonprofit 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 framework 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

    [[Page 114 STAT. 2763A-297]]

    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) Seven 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) Eleven 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) Two members based on a recommendation from each
                    United States Senator from New York State.
                        (C) Six 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, six shall be for a term of 1 year, six shall be
    for a term of 2 years, and seven shall be for a term of 3 years. Any
    member of the Commission appointed

    [[Page 114 STAT. 2763A-298]]

    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 Offices.--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.--Fourteen 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

    [[Page 114 STAT. 2763A-299]]

            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 section 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 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 section 805(b), include--
                (1) assisting in the appropriate preservation treatment of
            the remaining elements of the original Erie Canal;

    [[Page 114 STAT. 2763A-300]]

                (2) assisting State, 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;

    [[Page 114 STAT. 2763A-301]]

                (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 Park 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.

    [[Page 114 STAT. 2763A-302]]

    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, two 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

    [[Page 114 STAT. 2763A-303]]

                (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), D.C. 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

    [[Page 114 STAT. 2763A-304]]

    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

    [[Page 114 STAT. 2763A-305]]

    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), D.C. 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), D.C. 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),
    D.C. 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), D.C. 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 5-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), D.C. 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), D.C. Code) is amended--
                (1) in the matter preceding paragraph (1), by ``Each'' and
            inserting ``Except as provided in paragraph (5), each''; and

    [[Page 114 STAT. 2763A-306]]

                (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,
                    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, D.C. 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), D.C. 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
            first day of the 1st pay period beginning 6 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

    [[Page 114 STAT. 2763A-307]]

            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

    [[Page 114 STAT. 2763A-308]]

    of section 304 of the District of Columbia Police and Firemen's Salary
    Act of 1958 (sec. 4-413, D.C. 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 first day of the first pay period beginning
    6 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, D.C. Code), or section 301 of the
    District of Columbia Police and Firemen's Salary Act of 1953 (sec. 4-
    605, D.C. 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, D.C. 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'';
                (2) in subsection (c), by striking ``$595 per annum'' each
            place it appears and inserting the following: ``$595 per annum,
            except in the case of an officer or member of 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''; and
                (3) in subsection (e), by inserting after ``Whenever any
            officer or member'' the following: ``(other than an officer or
            member of the United States Secret Service Uniformed Division or
            the United States Park Police)''.

    [[Page 114 STAT. 2763A-309]]

        (b) Helicopter Pilot, Bomb Disposal, or Scuba Diving Duty.--Section
    202 of such Act (sec. 4-408, D.C. Code) is amended by striking ``$2,270
    per annum'' and inserting the following: ``$2,270 per annum, except in
    the case of an officer or member of the United States Park Police, who
    shall receive a per annum amount equal to 7 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.''.

    [[Page 114 STAT. 2763A-310]]

        (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 first day of the first
    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 5 and 50 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.

    [[Page 114 STAT. 2763A-311]]

        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 6 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 29 Navajo men to serve as Marine Corps Radio
            Operators;
                (4) the number of Navajo enlistees later increased to more
            than 350;
                (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;

    [[Page 114 STAT. 2763A-312]]

                (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 29 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 (1), the
    Secretary of the Treasury (in this section referred 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.

    [[Page 114 STAT. 2763A-313]]

                                    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 Solid Waste Disposal Act (42 U.S.C. 6901 et
                    seq.);
                        (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
    one or more aboveground storage tanks that--

    [[Page 114 STAT. 2763A-314]]

                (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 fiscal 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.

    [[Page 114 STAT. 2763A-315]]

                TITLE XIV--CERTAIN ALASKAN CRUISE SHIP OPERATIONS

    SEC. 1401. PURPOSE.

        The purpose of this title is to:
                (1) 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.
                (2) 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.
                (3) 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.
                (4) 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.

        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.

    [[Page 114 STAT. 2763A-316]]

        (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 <greek-m>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

    [[Page 114 STAT. 2763A-317]]

    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; and
                (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.--

    [[Page 114 STAT. 2763A-318]]

                (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 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

    [[Page 114 STAT. 2763A-319]]

                    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 the 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

    [[Page 114 STAT. 2763A-320]]

    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) In General.--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

    [[Page 114 STAT. 2763A-321]]

            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 30 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

    [[Page 114 STAT. 2763A-322]]

    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.

    [[Page 114 STAT. 2763A-323]]

                (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 three 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.

    [[Page 114 STAT. 2763A-324]]

                          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)

    [[Page 114 STAT. 2763A-325]]

            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 adjustment 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

    [[Page 114 STAT. 2763A-326]]

                (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 on 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

    [[Page 114 STAT. 2763A-327]]

                        ``(B) the Attorney General may grant the alien a
                    waiver on 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 Nationality 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,

    [[Page 114 STAT. 2763A-328]]

            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

    [[Page 114 STAT. 2763A-329]]

            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 multiyear 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

    [[Page 114 STAT. 2763A-330]]

            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 section
            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

    [[Page 114 STAT. 2763A-331]]

            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:

    [[Page 114 STAT. 2763A-332]]

                ``(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)--

    [[Page 114 STAT. 2763A-333]]

                              (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.''.

    [[Page 114 STAT. 2763A-334]]

        (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.

    [[Page 114 STAT. 2763A-335]]

                (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''.

    [[Page 114 STAT. 2763A-336]]

    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.

    [[Page 114 STAT. 2763A-337]]

        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.--

    [[Page 114 STAT. 2763A-338]]

                              ``(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

    [[Page 114 STAT. 2763A-339]]

                    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;

    [[Page 114 STAT. 2763A-340]]

                              ``(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

    [[Page 114 STAT. 2763A-341]]

                          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

    [[Page 114 STAT. 2763A-342]]

                          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

    [[Page 114 STAT. 2763A-343]]

                              ``(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 one
                          public hearing or meeting to address the proposed
                          Internet safety policy. In the case of an
                          elementary

    [[Page 114 STAT. 2763A-344]]

                          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.

    [[Page 114 STAT. 2763A-345]]

                              ``(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

    [[Page 114 STAT. 2763A-346]]

                                    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.

    [[Page 114 STAT. 2763A-347]]

                              ``(iii) Public notice; hearing.--A library
                          described in clause (i) shall provide reasonable
                          public notice and hold at least one 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)

    [[Page 114 STAT. 2763A-348]]

                                    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.--

    [[Page 114 STAT. 2763A-349]]

                              ``(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

    [[Page 114 STAT. 2763A-350]]

                    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--

    [[Page 114 STAT. 2763A-351]]

                              ``(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

    [[Page 114 STAT. 2763A-352]]

    court of three 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
    three 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''.

    __________
    ---------------------------------------------------------------------------

        ENDNOTE: Appendixes D-1 and D-2 were added pursuant to the
    provisions of sections 125 and 127 of this Appendix (114 Stat. 2763A-
    229).

    [[Page 114 STAT. 2763A-353]]

                              APPENDIX D-1--S. 2273

    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.

    [[Page 114 STAT. 2763A-354]]

                (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

    [[Page 114 STAT. 2763A-355]]

    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.

        Subject to valid existing rights, all Federal lands within the
    conservation area and all lands and interests therein which are

    [[Page 114 STAT. 2763A-356]]

    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.

    [[Page 114 STAT. 2763A-357]]

                (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.

    [[Page 114 STAT. 2763A-359]]

                              APPENDIX D-2--S. 2885

    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;

    [[Page 114 STAT. 2763A-360]]

                (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.

    [[Page 114 STAT. 2763A-361]]

                              (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.

    [[Page 114 STAT. 2763A-362]]

        (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

    [[Page 114 STAT. 2763A-363]]

                    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 nonreimbursable
                          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.

    [[Page 114 STAT. 2763A-365]]

                              APPENDIX E--H.R. 5660

    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.

    [[Page 114 STAT. 2763A-366]]

    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--

    [[Page 114 STAT. 2763A-367]]

                        ``(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--

    [[Page 114 STAT. 2763A-368]]

                        ``(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 CFR
                                            4.7(a));
                                                ``(bb) accredited investors,
                                            as defined in Regulation D of
                                            the Securities and Exchange
                                            Commission under the Securities
                                            Act of 1933 (17 CFR 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--

    [[Page 114 STAT. 2763A-369]]

                              ``(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;

    [[Page 114 STAT. 2763A-370]]

                                                ``(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

    [[Page 114 STAT. 2763A-371]]

                              ``(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 one 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.

    [[Page 114 STAT. 2763A-372]]

                ``(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 one or more payments indexed to the
            value, level, or rate of, or providing for the delivery of, one
            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 five 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

    [[Page 114 STAT. 2763A-373]]

                          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) one of 750 securities with
                                    the largest market capitalization; and
                                        ``(cc) one 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
                          the 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 the 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.

    [[Page 114 STAT. 2763A-374]]

                        ``(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

    [[Page 114 STAT. 2763A-375]]

            under section 3(a)(12) of the Securities Exchange Act of 1934 as
            in effect on the date of the 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 the 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

    [[Page 114 STAT. 2763A-376]]

                    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;

    [[Page 114 STAT. 2763A-377]]

                                        ``(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);

    [[Page 114 STAT. 2763A-378]]

                        ``(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

    [[Page 114 STAT. 2763A-379]]

                        ``(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 the 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.--

    [[Page 114 STAT. 2763A-380]]

                ``(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 one 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--

    [[Page 114 STAT. 2763A-381]]

                        ``(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

    [[Page 114 STAT. 2763A-382]]

                    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

    [[Page 114 STAT. 2763A-383]]

                        ``(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--

    [[Page 114 STAT. 2763A-384]]

                        ``(A)(i) 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

    [[Page 114 STAT. 2763A-385]]

            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--

    [[Page 114 STAT. 2763A-386]]

                        ``(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

    [[Page 114 STAT. 2763A-387]]

                        ``(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

    [[Page 114 STAT. 2763A-388]]

                    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;

    [[Page 114 STAT. 2763A-389]]

                              ``(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

    [[Page 114 STAT. 2763A-390]]

            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

    [[Page 114 STAT. 2763A-391]]

    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 the 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 two 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,

    [[Page 114 STAT. 2763A-392]]

                    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 one 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

    [[Page 114 STAT. 2763A-393]]

            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,

    [[Page 114 STAT. 2763A-394]]

                          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

    [[Page 114 STAT. 2763A-395]]

            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; and
                ``(5) transfer assets and liabilities to a bridge bank as
            provided in paragraphs (1), (3)(A), (5), and (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;''.

    [[Page 114 STAT. 2763A-396]]

                        (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--

    [[Page 114 STAT. 2763A-397]]

                ``(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.

    [[Page 114 STAT. 2763A-398]]

                        ``(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

    [[Page 114 STAT. 2763A-399]]

            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 the 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.

    [[Page 114 STAT. 2763A-400]]

        ``(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--

    [[Page 114 STAT. 2763A-401]]

                        ``(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 sections
    2(a)(1) and 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.

    [[Page 114 STAT. 2763A-402]]

        ``(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,

    [[Page 114 STAT. 2763A-403]]

                          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; and
                        ``(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.

    [[Page 114 STAT. 2763A-404]]

                ``(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 the enactment of this
    section, the Commission shall submit to the Committee on Agriculture of
    the House of Representatives and the Committee

    [[Page 114 STAT. 2763A-405]]

    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)--
                                        (I) by striking ``subparagraph (B)
                                    of this subparagraph'' and inserting
                                    ``subparagraphs (C) and (D) of this
                                    paragraph and subsections (c) through
                                    (i) of this section'';
                                        (II) 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'';
                                        (III) by striking clause (ii); and
                                        (IV) 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)--

    [[Page 114 STAT. 2763A-406]]

                                        (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

    [[Page 114 STAT. 2763A-407]]

                                        (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''.

    [[Page 114 STAT. 2763A-408]]

                (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--

    [[Page 114 STAT. 2763A-409]]

                                        (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'';

    [[Page 114 STAT. 2763A-410]]

                        (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'';

    [[Page 114 STAT. 2763A-411]]

                                        (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 the 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

    [[Page 114 STAT. 2763A-412]]

            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

    [[Page 114 STAT. 2763A-413]]

    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 the 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 the 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)

    [[Page 114 STAT. 2763A-414]]

            of the Commodity Exchange 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.
                ``(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 five 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 nine 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) one of 750 securities with the largest
                          market capitalization; and
                              ``(cc) one 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 the 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;

    [[Page 114 STAT. 2763A-415]]

                        ``(v) no more than 18 months have passed since the
                    date of the 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).''.

    [[Page 114 STAT. 2763A-416]]

    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

    [[Page 114 STAT. 2763A-417]]

            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 the 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

    [[Page 114 STAT. 2763A-418]]

                                        ``(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 the
                                    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

    [[Page 114 STAT. 2763A-419]]

                    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.

    [[Page 114 STAT. 2763A-420]]

                              ``(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

    [[Page 114 STAT. 2763A-421]]

                    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

    [[Page 114 STAT. 2763A-422]]

                          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

    [[Page 114 STAT. 2763A-423]]

            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);

    [[Page 114 STAT. 2763A-424]]

                        ``(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

    [[Page 114 STAT. 2763A-425]]

                    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'';

    [[Page 114 STAT. 2763A-426]]

                        (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 the 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

    [[Page 114 STAT. 2763A-427]]

            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;

    [[Page 114 STAT. 2763A-428]]

                        ``(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

    [[Page 114 STAT. 2763A-429]]

                        ``(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
            the 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

    [[Page 114 STAT. 2763A-430]]

                    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:

    [[Page 114 STAT. 2763A-431]]

        ``(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

    [[Page 114 STAT. 2763A-432]]

            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,

    [[Page 114 STAT. 2763A-433]]

    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 the 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.''.

    [[Page 114 STAT. 2763A-434]]

                (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--

    [[Page 114 STAT. 2763A-435]]

                        (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.''; and
                        (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,''.

    [[Page 114 STAT. 2763A-436]]

                (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)--

    [[Page 114 STAT. 2763A-437]]

                              (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''; and
                              (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:

    [[Page 114 STAT. 2763A-438]]

                ``(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

    [[Page 114 STAT. 2763A-439]]

            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

    [[Page 114 STAT. 2763A-440]]

            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

    [[Page 114 STAT. 2763A-441]]

    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

    [[Page 114 STAT. 2763A-442]]

            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;

    [[Page 114 STAT. 2763A-443]]

                        ``(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;

    [[Page 114 STAT. 2763A-444]]

                (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

    [[Page 114 STAT. 2763A-445]]

            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;

    [[Page 114 STAT. 2763A-446]]

                ``(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.''.

    [[Page 114 STAT. 2763A-447]]

        (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.

    [[Page 114 STAT. 2763A-448]]

                ``(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.''.

    [[Page 114 STAT. 2763A-449]]

    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
    the 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,

    [[Page 114 STAT. 2763A-450]]

            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 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

    [[Page 114 STAT. 2763A-451]]

                        ``(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

    [[Page 114 STAT. 2763A-452]]

            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).

    [[Page 114 STAT. 2763A-453]]

                ``(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

    [[Page 114 STAT. 2763A-454]]

    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 (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.''.
        (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

    [[Page 114 STAT. 2763A-455]]

    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

    [[Page 114 STAT. 2763A-456]]

    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)''.

    [[Page 114 STAT. 2763A-457]]

        (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 the enactment of the
            Commodity Futures Modernization Act of 2000).

    [[Page 114 STAT. 2763A-458]]

        (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 one or more payments indexed
    to the value, level, or rate of, or providing for the delivery of, one
    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 the 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
                    subparagraph (A), (B)(ii), or (C) of section 1a(12) of
                    the Commodity Exchange Act, as in effect on the date of
                    the 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.

    [[Page 114 STAT. 2763A-459]]

    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--

    [[Page 114 STAT. 2763A-460]]

                (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).

    [[Page 114 STAT. 2763A-461]]

                (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.

    [[Page 114 STAT. 2763A-463]]

                              APPENDIX F--H.R. 5661

    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.

    [[Page 114 STAT. 2763A-464]]

    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 two of the three 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. Five 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.

    [[Page 114 STAT. 2763A-465]]

                     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. One-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. One-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.

    [[Page 114 STAT. 2763A-466]]

    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. One-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.

    [[Page 114 STAT. 2763A-467]]

                               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. One-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''.

    [[Page 114 STAT. 2763A-468]]

        (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)--

    [[Page 114 STAT. 2763A-469]]

                        (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.''.

    [[Page 114 STAT. 2763A-470]]

        (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.

    [[Page 114 STAT. 2763A-471]]

                (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

    [[Page 114 STAT. 2763A-472]]

    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.''.

    [[Page 114 STAT. 2763A-473]]

                (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.

    [[Page 114 STAT. 2763A-474]]

        ``(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.--

    [[Page 114 STAT. 2763A-475]]

                (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

    [[Page 114 STAT. 2763A-476]]

                (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 nine demonstration projects, including the
            following:

    [[Page 114 STAT. 2763A-477]]

                        (A) Two projects for each of the four 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 two projects must target different ethnic
                    subpopulations.
                        (B) One project within the Pacific Islands.
                        (C) At least one 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.

    [[Page 114 STAT. 2763A-478]]

                        (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.

    [[Page 114 STAT. 2763A-479]]

        (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.

    [[Page 114 STAT. 2763A-480]]

                (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).

    [[Page 114 STAT. 2763A-481]]

                    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'';

    [[Page 114 STAT. 2763A-482]]

                (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

    [[Page 114 STAT. 2763A-483]]

                        ``(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'';

    [[Page 114 STAT. 2763A-484]]

                (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

    [[Page 114 STAT. 2763A-485]]

    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 TWO OF THE THREE 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 two of the three
    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'';

    [[Page 114 STAT. 2763A-486]]

                (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.

    [[Page 114 STAT. 2763A-487]]

                        (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-

    [[Page 114 STAT. 2763A-488]]

            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

    [[Page 114 STAT. 2763A-489]]

                                    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

    [[Page 114 STAT. 2763A-490]]

                        (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 ).

    [[Page 114 STAT. 2763A-491]]

                    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--

    [[Page 114 STAT. 2763A-492]]

                        (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.

    [[Page 114 STAT. 2763A-493]]

    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

    [[Page 114 STAT. 2763A-494]]

                (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-

    [[Page 114 STAT. 2763A-495]]

            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:

    [[Page 114 STAT. 2763A-496]]

                        ``(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

    [[Page 114 STAT. 2763A-497]]

            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

    [[Page 114 STAT. 2763A-498]]

                (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.

    [[Page 114 STAT. 2763A-499]]

    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

    [[Page 114 STAT. 2763A-500]]

            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. FIVE 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.

    [[Page 114 STAT. 2763A-501]]

        (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.

    [[Page 114 STAT. 2763A-502]]

                          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 one 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:

    [[Page 114 STAT. 2763A-503]]

                              ``(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

    [[Page 114 STAT. 2763A-504]]

                                    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

    [[Page 114 STAT. 2763A-505]]

                                        ``(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.

    [[Page 114 STAT. 2763A-506]]

        (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.

    [[Page 114 STAT. 2763A-507]]

        (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).

    [[Page 114 STAT. 2763A-508]]

    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).

    [[Page 114 STAT. 2763A-509]]

                (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.--

    [[Page 114 STAT. 2763A-510]]

                ``(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

    [[Page 114 STAT. 2763A-511]]

            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

    [[Page 114 STAT. 2763A-512]]

            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.

    [[Page 114 STAT. 2763A-513]]

                ``(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

    [[Page 114 STAT. 2763A-514]]

            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).

    [[Page 114 STAT. 2763A-515]]

                ``(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).

    [[Page 114 STAT. 2763A-516]]

                           Subtitle C--Other Services

    SEC. 421. ONE-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

    [[Page 114 STAT. 2763A-517]]

            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

    [[Page 114 STAT. 2763A-518]]

            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 one-
            fourth) 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 one-half and
            three-fourths,

    [[Page 114 STAT. 2763A-519]]

             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''.

    [[Page 114 STAT. 2763A-520]]

        (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

    [[Page 114 STAT. 2763A-521]]

                                    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.

    [[Page 114 STAT. 2763A-522]]

                (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

    [[Page 114 STAT. 2763A-523]]

                    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--

    [[Page 114 STAT. 2763A-524]]

                              (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.''.

    [[Page 114 STAT. 2763A-525]]

        (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.

    [[Page 114 STAT. 2763A-526]]

                ``(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));

    [[Page 114 STAT. 2763A-527]]

                (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

    [[Page 114 STAT. 2763A-528]]

            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.

    [[Page 114 STAT. 2763A-529]]

                  TITLE V--PROVISIONS RELATING TO PARTS A AND B

                        Subtitle A--Home Health Services

    SEC. 501. ONE-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

    [[Page 114 STAT. 2763A-530]]

                (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

    [[Page 114 STAT. 2763A-531]]

                (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).

    [[Page 114 STAT. 2763A-532]]

        (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

    [[Page 114 STAT. 2763A-533]]

            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.''.

    [[Page 114 STAT. 2763A-534]]

        (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

    [[Page 114 STAT. 2763A-535]]

                          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.

    [[Page 114 STAT. 2763A-536]]

                              ``(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

    [[Page 114 STAT. 2763A-537]]

                                    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

    [[Page 114 STAT. 2763A-538]]

                          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

    [[Page 114 STAT. 2763A-539]]

                                    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

    [[Page 114 STAT. 2763A-540]]

                    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)

    [[Page 114 STAT. 2763A-541]]

                          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

    [[Page 114 STAT. 2763A-542]]

                    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

    [[Page 114 STAT. 2763A-543]]

                    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.

    [[Page 114 STAT. 2763A-544]]

                        ``(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,

    [[Page 114 STAT. 2763A-545]]

            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.

    [[Page 114 STAT. 2763A-546]]

                ``(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.

    [[Page 114 STAT. 2763A-547]]

        ``(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

    [[Page 114 STAT. 2763A-548]]

    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

    [[Page 114 STAT. 2763A-549]]

            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)).

    [[Page 114 STAT. 2763A-550]]

                (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).

    [[Page 114 STAT. 2763A-551]]

                              (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.

    [[Page 114 STAT. 2763A-552]]

                (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;

    [[Page 114 STAT. 2763A-553]]

                (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).

    [[Page 114 STAT. 2763A-554]]

                (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--

    [[Page 114 STAT. 2763A-555]]

                (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).

    [[Page 114 STAT. 2763A-556]]

        (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

    [[Page 114 STAT. 2763A-557]]

    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

    [[Page 114 STAT. 2763A-558]]

    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)''.

    [[Page 114 STAT. 2763A-559]]

    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

    [[Page 114 STAT. 2763A-560]]

            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

    [[Page 114 STAT. 2763A-561]]

                (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:

    [[Page 114 STAT. 2763A-562]]

        ``(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 one 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

    [[Page 114 STAT. 2763A-563]]

            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

    [[Page 114 STAT. 2763A-564]]

                          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:

    [[Page 114 STAT. 2763A-565]]

                        ``(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).

    [[Page 114 STAT. 2763A-566]]

    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. ONE-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:

    [[Page 114 STAT. 2763A-567]]

                        ``(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.--

    [[Page 114 STAT. 2763A-568]]

                ``(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

    [[Page 114 STAT. 2763A-569]]

    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

    [[Page 114 STAT. 2763A-570]]

            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.

    [[Page 114 STAT. 2763A-571]]

                        (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

    [[Page 114 STAT. 2763A-572]]

                    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

    [[Page 114 STAT. 2763A-573]]

            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

    [[Page 114 STAT. 2763A-574]]

                    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

    [[Page 114 STAT. 2763A-575]]

            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

    [[Page 114 STAT. 2763A-576]]

    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).

    [[Page 114 STAT. 2763A-577]]

                (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. ONE-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)''.

    [[Page 114 STAT. 2763A-578]]

    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,

    [[Page 114 STAT. 2763A-579]]

                    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 one 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

    [[Page 114 STAT. 2763A-580]]

                          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

    [[Page 114 STAT. 2763A-581]]

                (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

    [[Page 114 STAT. 2763A-582]]

                    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.''.

    [[Page 114 STAT. 2763A-583]]

        (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.

    [[Page 114 STAT. 2763A-584]]

                ``(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''.

    [[Page 114 STAT. 2763A-585]]

        (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

    [[Page 114 STAT. 2763A-586]]

                    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.

    [[Page 114 STAT. 2763A-587]]

                              APPENDIX G--H.R. 5662

    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.--The table of contents for this Act is as
    follows:

    Sec. 1. Short title; amendment of 1986 Code.

                   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 nine additional empowerment zones.
    Sec. 112. Extension of empowerment zone treatment through 2009.
    Sec. 113. Twenty 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.

    [[Page 114 STAT. 2763A-588]]

    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--TWO-YEAR EXTENSION OF AVAILABILITY OF MEDICAL SAVINGS ACCOUNTS

    Sec. 201. Two-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.

    [[Page 114 STAT. 2763A-589]]

                   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

    [[Page 114 STAT. 2763A-590]]

                    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

    [[Page 114 STAT. 2763A-591]]

                              ``(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

    [[Page 114 STAT. 2763A-592]]

            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.

    [[Page 114 STAT. 2763A-593]]

                              ``(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--

    [[Page 114 STAT. 2763A-594]]

                ``(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,

    [[Page 114 STAT. 2763A-595]]

                        ``(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.

    [[Page 114 STAT. 2763A-596]]

    ``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

    [[Page 114 STAT. 2763A-597]]

                              ``(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

    [[Page 114 STAT. 2763A-598]]

                    (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,

    [[Page 114 STAT. 2763A-599]]

                ``(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

    [[Page 114 STAT. 2763A-600]]

    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.

    [[Page 114 STAT. 2763A-601]]

                ``(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

    [[Page 114 STAT. 2763A-602]]

                        ``(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

    [[Page 114 STAT. 2763A-603]]

                        ``(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''.

    [[Page 114 STAT. 2763A-604]]

                (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''.

    [[Page 114 STAT. 2763A-605]]

        (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

    [[Page 114 STAT. 2763A-606]]

            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

    [[Page 114 STAT. 2763A-607]]

                        ``(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

    [[Page 114 STAT. 2763A-608]]

                        ``(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.

    [[Page 114 STAT. 2763A-609]]

                ``(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:

    [[Page 114 STAT. 2763A-610]]

                ``(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--

    [[Page 114 STAT. 2763A-611]]

                                        ``(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.''.

    [[Page 114 STAT. 2763A-612]]

        (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

    [[Page 114 STAT. 2763A-613]]

                          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--

    [[Page 114 STAT. 2763A-614]]

                (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

    [[Page 114 STAT. 2763A-615]]

                              ``(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

    [[Page 114 STAT. 2763A-616]]

            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.

    [[Page 114 STAT. 2763A-617]]

                        ``(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.''.

    [[Page 114 STAT. 2763A-618]]

    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,'';

    [[Page 114 STAT. 2763A-619]]

                              (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).

    [[Page 114 STAT. 2763A-620]]

        ``(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

    [[Page 114 STAT. 2763A-621]]

            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.

    [[Page 114 STAT. 2763A-622]]

        ``(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'')

    [[Page 114 STAT. 2763A-623]]

    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

    [[Page 114 STAT. 2763A-624]]

    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
    fuctions 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.

    [[Page 114 STAT. 2763A-625]]

    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

    [[Page 114 STAT. 2763A-626]]

                (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

    [[Page 114 STAT. 2763A-627]]

                          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

    [[Page 114 STAT. 2763A-628]]

    (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--TWO-YEAR EXTENSION OF AVAILABILITY OF MEDICAL SAVINGS ACCOUNTS

    SEC. 201. TWO-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.

    [[Page 114 STAT. 2763A-629]]

                (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 msa''.
                (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 )).

    [[Page 114 STAT. 2763A-630]]

                (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.

    [[Page 114 STAT. 2763A-631]]

                        (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:

    [[Page 114 STAT. 2763A-632]]

                        (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

    [[Page 114 STAT. 2763A-633]]

    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.

    [[Page 114 STAT. 2763A-634]]

        ``(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--

    [[Page 114 STAT. 2763A-635]]

                              ``(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

    [[Page 114 STAT. 2763A-636]]

    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

    [[Page 114 STAT. 2763A-637]]

    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

    [[Page 114 STAT. 2763A-638]]

                (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.--

    [[Page 114 STAT. 2763A-639]]

                (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.--

    [[Page 114 STAT. 2763A-640]]

                (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).--

    [[Page 114 STAT. 2763A-641]]

                        (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

    [[Page 114 STAT. 2763A-642]]

                          ``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)''.

    [[Page 114 STAT. 2763A-643]]

        (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.--

    [[Page 114 STAT. 2763A-644]]

                (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:

    [[Page 114 STAT. 2763A-645]]

                                        ``(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.--

    [[Page 114 STAT. 2763A-646]]

                (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)''.

    [[Page 114 STAT. 2763A-647]]

                (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''.

    [[Page 114 STAT. 2763A-648]]

                (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--

    [[Page 114 STAT. 2763A-649]]

                (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

    [[Page 114 STAT. 2763A-650]]

                    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.''.

    [[Page 114 STAT. 2763A-651]]

        ( j) Effective Date.--The amendments made by this section shall take
    effect on the date of the enactment of this Act.

    [[Page 114 STAT. 2763A-653]]

                              APPENDIX H--H.R. 5663

    SECTION 1. 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--

    [[Page 114 STAT. 2763A-654]]

                              ``(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

    [[Page 114 STAT. 2763A-655]]

                        ``(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

    [[Page 114 STAT. 2763A-656]]

    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

    [[Page 114 STAT. 2763A-657]]

                    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--

    [[Page 114 STAT. 2763A-658]]

                              ``(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 be 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

    [[Page 114 STAT. 2763A-659]]

    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

    [[Page 114 STAT. 2763A-660]]

                              ``(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).

    [[Page 114 STAT. 2763A-661]]

                        ``(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
                    Market 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 a 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 REQUIREMENT.

        ``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.

    [[Page 114 STAT. 2763A-662]]

    ``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.

        ``(d) 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.

    [[Page 114 STAT. 2763A-663]]

    ``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,

    [[Page 114 STAT. 2763A-664]]

                    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

    [[Page 114 STAT. 2763A-665]]

                              ``(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.''.

    [[Page 114 STAT. 2763A-666]]

    SEC. 2. 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.''.

    [[Page 114 STAT. 2763A-667]]

                              APPENDIX I--H.R. 5667

    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.

    [[Page 114 STAT. 2763A-668]]

    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

    SEC. 101. 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;

    [[Page 114 STAT. 2763A-669]]

                (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

    [[Page 114 STAT. 2763A-670]]

    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 the 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 the 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--

    [[Page 114 STAT. 2763A-671]]

                              ``(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 the 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

    [[Page 114 STAT. 2763A-672]]

                    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,

    [[Page 114 STAT. 2763A-673]]

            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 the 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 the 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 the 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 the 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));

    [[Page 114 STAT. 2763A-674]]

                        ``(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.

    [[Page 114 STAT. 2763A-675]]

                ``(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;

    [[Page 114 STAT. 2763A-676]]

                              ``(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 one 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

    [[Page 114 STAT. 2763A-677]]

                ``(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.

    [[Page 114 STAT. 2763A-678]]

                ``(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 the 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

    [[Page 114 STAT. 2763A-679]]

            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 one 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

    [[Page 114 STAT. 2763A-680]]

            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--

    [[Page 114 STAT. 2763A-681]]

                ``(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),''.

    [[Page 114 STAT. 2763A-682]]

    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.

    [[Page 114 STAT. 2763A-683]]

                        ``(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.''.

    [[Page 114 STAT. 2763A-684]]

    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.''.

    [[Page 114 STAT. 2763A-685]]

    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--

    [[Page 114 STAT. 2763A-686]]

                              ``(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--

    [[Page 114 STAT. 2763A-687]]

                                        ``(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.--

    [[Page 114 STAT. 2763A-688]]

                              ``(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.--

    [[Page 114 STAT. 2763A-689]]

                ``(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
            the 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.

    [[Page 114 STAT. 2763A-690]]

       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 one 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''.

    [[Page 114 STAT. 2763A-691]]

        (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);

    [[Page 114 STAT. 2763A-692]]

                              ``(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).

    [[Page 114 STAT. 2763A-693]]

                        ``(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:

    [[Page 114 STAT. 2763A-694]]

                        ``(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

    [[Page 114 STAT. 2763A-695]]

                          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

    [[Page 114 STAT. 2763A-696]]

                              ``(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 one
                                    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''.

    [[Page 114 STAT. 2763A-697]]

                            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 one 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 one or more
                          Indian tribal governments, or by a corporation
                          that is wholly owned by one or more Indian tribal
                          governments; or
                              ``(ii) that is owned in part by one or more
                          Indian tribal governments, or by a corporation
                          that is wholly owned by one 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

    [[Page 114 STAT. 2763A-698]]

                                            by one 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 the enactment of this
                                    paragraph, unless that tribe is
                                    recognized after that date of the
                                    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 the 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 the 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

    [[Page 114 STAT. 2763A-699]]

                                    (as in effect on the date of the
                                    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

    [[Page 114 STAT. 2763A-700]]

                    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 one or more community
                          development corporations, if all other owners are
                          either United States citizens or small business
                          concerns.''; and

    [[Page 114 STAT. 2763A-701]]

                (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 one or more public or
    private entities.''.

    [[Page 114 STAT. 2763A-702]]

    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 the
    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--

    [[Page 114 STAT. 2763A-703]]

                (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

    [[Page 114 STAT. 2763A-704]]

                          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:

    [[Page 114 STAT. 2763A-705]]

                              ``(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

    [[Page 114 STAT. 2763A-706]]

                (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.--

    [[Page 114 STAT. 2763A-707]]

                ``(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

    [[Page 114 STAT. 2763A-708]]

                                            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 one 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 two 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);

    [[Page 114 STAT. 2763A-709]]

                        ``(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--

    [[Page 114 STAT. 2763A-710]]

                              ``(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.''.