" ! HOUSE OF REPRESENTATIVES 106TH CONGRESS

2d Session

REPORT

106–1033

MAKING OMNIBUS CONSOLIDATED AND

EMERGENCY SUPPLEMENTAL APPROPRIATIONS FOR FISCAL YEAR 2001

CONFERENCE REPORT

TO ACCOMPANY

H.R. 4577

DECEMBER 15, 2000.—Ordered to be printed

MNIBUS CONSOLIDATED AND EMERGENCY SUPPLEMENTAL

APPROPRIATIONS FOR FISCAL YEAR 2001

U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

1

67–191

" ! HOUSE OF REPRESENTATIVES 106TH CONGRESS

2d Session

REPORT

2000

106–1033

MAKING OMNIBUS CONSOLIDATED AND

EMERGENCY SUPPLEMENTAL APPROPRIATIONS FOR FISCAL YEAR 2001

CONFERENCE REPORT

TO ACCOMPANY

H.R. 4577

DECEMBER 15, 2000.—Ordered to be printed

106TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 106–1033

MAKING OMNIBUS CONSOLIDATED AND EMERGENCY

SUPPLEMENTAL APPROPRIATIONS FOR FISCAL YEAR 2001

DECEMBER 15, 2000.—Ordered to be printed

Mr. YOUNG of Florida, from the committee of conference,

submitted the following

CONFERENCE REPORT

[To accompany H.R. 4577]

The committee of conference on the disagreeing votes of the

two Houses on the amendment of the Senate to the bill (H.R. 4577)

‘‘making appropriations for the Departments of Labor, Health and

Human Services, and Education, and related agencies for the fiscal

year ending September 30, 2001, and for other purposes’’, having

met, after full and free conference, have agreed to recommend and

do recommend to their respective Houses as follows:

That the House recede from its disagreement to the amendment of the Senate, and agree to the same with amendments, as

follows:

In lieu of the matter stricken and inserted by said amendment,

insert:

SECTION 1. (a) The provisions of the following bills of the 106th

Congress are hereby enacted into law:

(1) H.R. 5656, as introduced on December 14, 2000.

(2) H.R. 5657, as introduced on December 14, 2000.

(3) H.R. 5658, as introduced on December 14, 2000.

(4) H.R. 5666, as introduced on December 15, 2000.

(5) H.R. 5660, as introduced on December 14, 2000.

(6) H.R. 5661, as introduced on December 14, 2000.

(7) H.R. 5662, as introduced on December 14, 2000.

(8) H.R. 5663, as introduced on December 14, 2000.

(9) H.R. 5667, as introduced on December 15, 2000.

(b) In publishing this Act in slip form and in the United States

Statutes at Large pursuant to section 112 of title 1, United States

Code, the Archivist of the United States shall include after the date

of approval at the end appendixes setting forth the texts of the bills

referred to in subsection (a) of this section and the text of any other

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bill enacted into law by reference by reason of the enactment of this

Act.

SEC. 2. (a) Notwithstanding Rule 3 of the Budget Scorekeeping

Guidelines set forth in the joint explanatory statement of the committee of conference accompanying Conference Report 105–217, legislation enacted in section 505 of the Department of Transportation

and Related Agencies Appropriations Act, 2001, section 312 of the

Legislative Branch Appropriations Act, 2001, titles X and XI of H.R.

5548 (106th Congress) as enacted by H.R. 4942 (106th Congress),

Division B of H.R. 5666 (106th Congress) as enacted by this Act,

and sections 1(a)(5) through 1(a)(9) of this Act that would have been

estimated by the Office of Management and Budget as changing direct spending or receipts under section 252 of the Balanced Budget

and Emergency Deficit Control Act of 1985 were it included in an

Act other than an appropriations Act shall be treated as direct

spending or receipts legislation, as appropriate, under section 252

of the Balanced Budget and Emergency Deficit Control Act of 1985.

(b) In preparing the final sequestration report required by section 254(f)(3) of the Balanced Budget and Emergency Deficit Control

Act of 1985 for fiscal year 2001, in addition to the information required by that section, the Director of the Office of Management and

Budget shall change any balance of direct spending and receipts

legislation for fiscal year 2001 under section 252 of that Act to zero.

This Act may be cited as the ‘‘Consolidated Appropriations Act,

2001’’.

Amend the title of the bill so as to read:

‘‘An Act making consolidated appropriations for the fiscal year

ending September 30, 2001, and for other purposes.’’.

And the Senate agree to the same.

JOHN EDWARD PORTER,

C.W. BILL YOUNG,

HENRY BONILLA,

ERNEST J. ISTOOK, Jr.,

DAN MILLER,

JAY DICKEY,

ROGER F. WICKER,

ANNE M. NORTHUP,

RANDY ‘‘DUKE’’ CUNNINGHAM,

DAVID R. OBEY,

STENY H. HOYER,

NANCY PELOSI,

NITA M. LOWEY,

ROSA L. DELAURO,

JESSE L. JACKSON, Jr.

(Except elimination of

LIHEAP and CCDBG advanced funding; immigration and charitable choice

provisions.)

Managers on the Part of the House.

ARLEN SPECTER,

THAD COCHRAN,

SLADE GORTON,

JUDD GREGG,

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KAY BAILEY HUTCHISON, TED STEVENS, PETE V. DOMENICI, TOM HARKIN, ERNEST F. HOLLINGS, DANIEL K. INOUYE, HARRY REID, HERB KOHL, PATTY MURRAY, DIANNE FEINSTEIN, ROBERT C. BYRD, Managers on the Part of the Senate.

(5)

JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF

CONFERENCE

The managers on the part of the House and Senate at the conference on the disagreeing votes of the two Houses on the amendment of the Senate to the bill (H.R. 4577) making appropriations

for the Departments of Labor, Health and Human Services, and

Education, and Related Agencies, and for other purposes, submit

the following joint statement of the House and Senate in explanation of the effect of the action agreed upon by the managers and

recommended in the accompanying conference report.

This conference agreement includes more than the Departments of Labor, Health and Human Services, and Education, and

Related Agencies Appropriations Act, 2001. The conference agreement has been expanded to including the Legislative Branch Appropriations Act, 2001; the Treasury and General Government Appropriations Act, 2001; the Miscellaneous Appropriations Act, 2001;

the Commodity Futures Modernization Act of 2000; the Medicare,

Medicaid, and SCHIP Benefits Improvement and Protection Act of

2000; the Community Renewal Tax Relief Act of 2000; the New

Markets Venture Capital Program Act of 2000; and the Small Business Reauthorization Act of 2000; as well as the Departments of

Labor, Health and Human Services, and Education, and Related

Agencies Appropriations Act, 2001. The provisions of all of these

Acts have been enacted into law by reference in this conference report; however, a copy of the referenced legislation has been included in this statement for convenience.

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

The conference agreement would enact the provisions of H.R.

5656 as introduced on December 14, 2000. The text of that bill follows:

A BILL Making appropriations for the Departments of Labor, Health and Human

Services, and Education, and related agencies for the fiscal year ending September 30, 2001, and for other purposes.

Be it enacted by the Senate and House of Representatives of the

United States of America in Congress assembled, That the following

sums are appropriated, out of any money in the Treasury not otherwise appropriated, for the Departments of Labor, Health and

Human Services, and Education, and related agencies for the fiscal

year ending September 30, 2001, and for other purposes, namely:

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TITLE I—DEPARTMENT OF LABOR

EMPLOYMENT AND TRAINING ADMINISTRATION

TRAINING AND EMPLOYMENT SERVICES

For necessary expenses of the Workforce Investment Act, including the purchase and hire of passenger motor vehicles, the construction, alteration, and repair of buildings and other facilities, and the

purchase of real property for training centers as authorized by the

Workforce Investment Act; the Women in Apprenticeship and Nontraditional Occupations Act; and the National Skill Standards Act

of 1994; $3,207,805,000 plus reimbursements, of which

$1,808,465,000 is available for obligation for the period July 1,

2001 through June 30, 2002; of which $1,377,965,000 is available

for obligation for the period April 1, 2001 through June 30, 2002,

including $1,102,965,000 to carry out chapter 4 of the Workforce Investment Act and $275,000,000 to carry out section 169 of such Act;

and of which $20,375,000 is available for the period July 1, 2001

through June 30, 2004 for necessary expenses of construction, rehabilitation, and acquisition of Job Corps centers: Provided, That

$9,098,000 shall be for carrying out section 172 of the Workforce Investment Act, and $3,500,000 shall be for carrying out the National

Skills Standards Act of 1994: Provided further, That no funds from

any other appropriation shall be used to provide meal services at or

for Job Corps centers: Provided further, That funds provided to

carry out section 171(d) of such Act may be used for demonstration

projects that provide assistance to new entrants in the workforce

and incumbent workers: Provided further, That funding provided to

carry out projects under section 171 of the Workforce Investment Act

of 1998 that are identified in the Conference Agreement, shall not

be subject to the requirements of section 171(b)(2)(B) of such Act, the

requirements of section 171(c)(4)(D) of such Act, or the joint funding

requirements of sections 171(b)(2)(A) and 171(c)(4)(A) of such Act:

Provided further, That funding appropriated herein for Dislocated

Worker Employment and Training Activities under section

132(a)(2)(A) of the Workforce Investment Act of 1998 may be distributed for Dislocated Worker Projects under section 171(d) of the Act

without regard to the 10 percent limitation contained in section

171(d) of the Act: Provided further, That of the funds made available for Job Corps operating expenses in the Department of Labor

Appropriations Act, 2000, as enacted by section 1000(a)(4) of Public

Law 106–113, $586,487 shall be paid to the city of Vergennes,

Vermont in settlement of the city’s claim: Provided further, That

$4,600,000 provided herein for dislocated worker employment and

training activities shall be made available to the New Mexico Telecommunications Call Center Training Consortium for training in

telecommunications-related occupations.

For necessary expenses of the Workforce Investment Act, including the purchase and hire of passenger motor vehicles, the construction, alteration, and repair of buildings and other facilities, and the

purchase of real property for training centers as authorized by the

Workforce Investment Act; $2,463,000,000 plus reimbursements, of

which $2,363,000,000 is available for obligation for the period October 1, 2001 through June 30, 2002, and of which $100,000,000 is

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available for the period October 1, 2001 through June 30, 2004, for

necessary expenses of construction, rehabilitation, and acquisition of

Job Corps centers.

COMMUNITY SERVICE EMPLOYMENT FOR OLDER AMERICANS

To carry out title V of the Older Americans Act of 1965, as

amended, $440,200,000.

FEDERAL UNEMPLOYMENT BENEFITS AND ALLOWANCES

For payments during the current fiscal year of trade adjustment

benefit payments and allowances under part I; and for training, allowances for job search and relocation, and related State administrative expenses under part II, subchapters B and D, chapter 2, title

II of the Trade Act of 1974, as amended, $406,550,000, together

with such amounts as may be necessary to be charged to the subsequent appropriation for payments for any period subsequent to September 15 of the current year.

STATE UNEMPLOYMENT INSURANCE AND EMPLOYMENT SERVICE

OPERATIONS

For authorized administrative expenses, $193,452,000, together

with not to exceed $3,172,246,000 (including not to exceed

$1,228,000 which may be used for amortization payments to States

which had independent retirement plans in their State employment

service agencies prior to 1980), which may be expended from the

Employment Security Administration account in the Unemployment

Trust Fund including the cost of administering section 51 of the Internal Revenue Code of 1986, as amended, section 7(d) of the Wagner-Peyser Act, as amended, the Trade Act of 1974, as amended, the

Immigration Act of 1990, and the Immigration and Nationality Act,

as amended, and of which the sums available in the allocation for

activities authorized by title III of the Social Security Act, as

amended (42 U.S.C. 502–504), and the sums available in the allocation for necessary administrative expenses for carrying out 5 U.S.C.

8501–8523, shall be available for obligation by the States through

December 31, 2001, except that funds used for automation acquisitions shall be available for obligation by the States through September 30, 2003; and of which $193,452,000, together with not to

exceed $773,283,000 of the amount which may be expended from

said trust fund, shall be available for obligation for the period July

1, 2001 through June 30, 2002, to fund activities under the Act of

June 6, 1933, as amended, including the cost of penalty mail authorized under 39 U.S.C. 3202(a)(1)(E) made available to States in

lieu of allotments for such purpose: Provided, That to the extent that

the Average Weekly Insured Unemployment (AWIU) for fiscal year

2001 is projected by the Department of Labor to exceed 2,396,000,

an additional $28,600,000 shall be available for obligation for every

100,000 increase in the AWIU level (including a pro rata amount

for any increment less than 100,000) from the Employment Security

Administration Account of the Unemployment Trust Fund: Provided

further, That funds appropriated in this Act which are used to establish a national one-stop career center system, or which are used

to support the national activities of the Federal-State unemployment

8

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 WagnerPeyser 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 pro- grams, $110,651,000, including $6,431,000 to support up to 75 fulltime equivalent staff, the majority of which will be term Federal appointments lasting no more than 1 year, to administer welfare-towork 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 Ad- ministration, $107,832,000.

PENSION BENEFIT GUARANTY CORPORATION

PENSION BENEFIT GUARANTY CORPORATION FUND

The Pension Benefit Guaranty Corporation is authorized to

make such expenditures, including financial assistance authorized

by section 104 of Public Law 96–364, within limits of funds and

borrowing authority available to such Corporation, and in accord

with law, and to make such contracts and commitments without regard to fiscal year limitations as provided by section 104 of the Government Corporation Control Act, as amended (31 U.S.C. 9104), as

may be necessary in carrying out the program through September

30, 2001, for such Corporation: Provided, That not to exceed

$11,652,000 shall be available for administrative expenses of the

Corporation: Provided further, That expenses of such Corporation in

connection with the termination of pension plans, for the acquisiVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00012 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.000 pfrm03 PsN: HR1033
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tion, protection or management, and investment of trust assets, and

for benefits administration services shall be considered as non-administrative expenses for the purposes hereof, and excluded from the

above limitation.

EMPLOYMENT STANDARDS ADMINISTRATION

SALARIES AND EXPENSES

For necessary expenses for the Employment Standards Administration, including reimbursement to State, Federal, and local

agencies and their employees for inspection services rendered,

$361,491,000, together with $1,985,000 which may be expended

from the Special Fund in accordance with sections 39(c), 44(d) and

44(j) of the Longshore and Harbor Workers’ Compensation Act: Provided, That $2,000,000 shall be for the development of an alternative system for the electronic submission of reports required to be

filed under the Labor-Management Reporting and Disclosure Act of

1959, as amended, and for a computer database of the information

for each submission by whatever means, that is indexed and easily

searchable by the public via the Internet: Provided further, That the

Secretary of Labor is authorized to accept, retain, and spend, until

expended, in the name of the Department of Labor, all sums of

money ordered to be paid to the Secretary of Labor, in accordance

with the terms of the Consent Judgment in Civil Action No. 91–

0027 of the United States District Court for the District of the

Northern Mariana Islands (May 21, 1992): Provided further, That

the Secretary of Labor is authorized to establish and, in accordance

with 31 U.S.C. 3302, collect and deposit in the Treasury fees for

processing applications and issuing certificates under sections 11(d)

and 14 of the Fair Labor Standards Act of 1938, as amended (29

U.S.C. 211(d) and 214) and for processing applications and issuing

registrations under title I of the Migrant and Seasonal Agricultural

Worker Protection Act (29 U.S.C. 1801 et seq.).

SPECIAL BENEFITS

(INCLUDING TRANSFER OF FUNDS)

For the payment of compensation, benefits, and expenses (except

administrative expenses) accruing during the current or any prior

fiscal year authorized by title 5, chapter 81 of the United States

Code; continuation of benefits as provided for under the heading

‘‘Civilian War Benefits’’ in the Federal Security Agency Appropriation Act, 1947; the Employees’ Compensation Commission Appropriation Act, 1944; sections 4(c) and 5(f) of the War Claims Act of

1948 (50 U.S.C. App. 2012); and 50 percent of the additional compensation and benefits required by section 10(h) of the Longshore

and Harbor Workers’ Compensation Act, as amended, $56,000,000

together with such amounts as may be necessary to be charged to

the subsequent year appropriation for the payment of compensation

and other benefits for any period subsequent to August 15 of the

current year: Provided, That amounts appropriated may be used

under section 8104 of title 5, United States Code, by the Secretary

of Labor to reimburse an employer, who is not the employer at the

time of injury, for portions of the salary of a reemployed, disabled

10

beneficiary: Provided further, That balances of reimbursements unobligated on September 30, 2000, shall remain available until expended for the payment of compensation, benefits, and expenses:

Provided further, That in addition there shall be transferred to this

appropriation from the Postal Service and from any other corporation or instrumentality required under section 8147(c) of title 5,

United States Code, to pay an amount for its fair share of the cost

of administration, such sums as the Secretary determines to be the

cost of administration for employees of such fair share entities

through September 30, 2001: Provided further, That of those funds

transferred to this account from the fair share entities to pay the

cost of administration, $34,910,000 shall be made available to the

Secretary as follows: (1) for the operation of and enhancement to the

automated data processing systems, including document imaging,

medical bill review, and periodic roll management, in support of

Federal Employees’ Compensation Act administration, $23,371,000;

(2) for conversion to a paperless office, $7,005,000; (3) for communications redesign, $1,750,000; (4) for information technology maintenance and support, $2,784,000; and (5) the remaining funds shall

be paid into the Treasury as miscellaneous receipts: Provided further, That the Secretary may require that any person filing a notice

of injury or a claim for benefits under chapter 81 of title 5, United

States Code, or 33 U.S.C. 901 et seq., provide as part of such notice

and claim, such identifying information (including Social Security

account number) as such regulations may prescribe.

BLACK LUNG DISABILITY TRUST FUND

(INCLUDING TRANSFER OF FUNDS)

For payments from the Black Lung Disability Trust Fund, $1,028,000,000, of which $975,343,000 shall be available until September 30, 2002, for payment of all benefits as authorized by section

9501(d)(1), (2), (4), and (7) of the Internal Revenue Code of 1954,

as amended, and interest on advances as authorized by section

9501(c)(2) of that Act, and of which $30,393,000 shall be available

for transfer to Employment Standards Administration, Salaries and

Expenses, $21,590,000 for transfer to Departmental Management,

Salaries and Expenses, $318,000 for transfer to Departmental Management, Office of Inspector General, and $356,000 for payment into

miscellaneous receipts for the expenses of the Department of Treasury, for expenses of operation and administration of the Black Lung

Benefits program as authorized by section 9501(d)(5) of that Act:

Provided, That, in addition, such amounts as may be necessary may

be charged to the subsequent year appropriation for the payment of

compensation, interest, or other benefits for any period subsequent

to August 15 of the current year.

OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION

SALARIES AND EXPENSES

For necessary expenses for the Occupational Safety and Health

Administration, $425,983,000, including not to exceed $88,493,000

which shall be the maximum amount available for grants to States

under section 23(g) of the Occupational Safety and Health Act,

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which grants shall be no less than 50 percent of the costs of State

occupational safety and health programs required to be incurred

under plans approved by the Secretary under section 18 of the Occupational Safety and Health Act of 1970; and, in addition, notwithstanding 31 U.S.C. 3302, the Occupational Safety and Health Administration may retain up to $750,000 per fiscal year of training

institute course tuition fees, otherwise authorized by law to be collected, and may utilize such sums for occupational safety and

health training and education grants: Provided, That, notwithstanding 31 U.S.C. 3302, the Secretary of Labor is authorized, during the fiscal year ending September 30, 2001, to collect and retain

fees for services provided to Nationally Recognized Testing Laboratories, and may utilize such sums, in accordance with the provisions

of 29 U.S.C. 9a, to administer national and international laboratory

recognition programs that ensure the safety of equipment and products used by workers in the workplace: Provided further, That none

of the funds appropriated under this paragraph shall be obligated

or expended to prescribe, issue, administer, or enforce any standard,

rule, regulation, or order under the Occupational Safety and Health

Act of 1970 which is applicable to any person who is engaged in a

farming operation which does not maintain a temporary labor camp

and employs 10 or fewer employees: Provided further, That no funds

appropriated under this paragraph shall be obligated or expended

to administer or enforce any standard, rule, regulation, or order

under the Occupational Safety and Health Act of 1970 with respect

to any employer of 10 or fewer employees who is included within a

category having an occupational injury lost workday case rate, at

the most precise Standard Industrial Classification Code for which

such data are published, less than the national average rate as such

rates are most recently published by the Secretary, acting through

the Bureau of Labor Statistics, in accordance with section 24 of that

Act (29 U.S.C. 673), except—

(1) to provide, as authorized by such Act, consultation, technical assistance, educational and training services, and to conduct surveys and studies;

(2) to conduct an inspection or investigation in response to

an employee complaint, to issue a citation for violations found

during such inspection, and to assess a penalty for violations

which are not corrected within a reasonable abatement period

and for any willful violations found;

(3) to take any action authorized by such Act with respect

to imminent dangers;

(4) to take any action authorized by such Act with respect

to health hazards;

(5) to take any action authorized by such Act with respect

to a report of an employment accident which is fatal to one or

more employees or which results in hospitalization of two or

more employees, and to take any action pursuant to such investigation authorized by such Act; and

(6) to take any action authorized by such Act with respect

to complaints of discrimination against employees for exercising

rights under such Act:

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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 Admin- istration, $246,747,000, including purchase and bestowal of certificates and trophies in connection with mine rescue and first-aid

work, and the hire of passenger motor vehicles; including up to

$1,000,000 for mine rescue and recovery activities, which shall be

available only to the extent that fiscal year 2001 obligations for

these activities exceed $1,000,000; in addition, not to exceed

$750,000 may be collected by the National Mine Health and Safety

Academy for room, board, tuition, and the sale of training materials, otherwise authorized by law to be collected, to be available for

mine safety and health education and training activities, notwithstanding 31 U.S.C. 3302; and, in addition, the Mine Safety and

Health Administration may retain up to $1,000,000 from fees collected for the approval and certification of equipment, materials,

and explosives for use in mines, and may utilize such sums for such

activities; the Secretary is authorized to accept lands, buildings,

equipment, and other contributions from public and private sources

and to prosecute projects in cooperation with other agencies, Federal, State, or private; the Mine Safety and Health Administration

is authorized to promote health and safety education and training

in the mining community through cooperative programs with

States, industry, and safety associations; and any funds available

to the department may be used, with the approval of the Secretary,

to provide for the costs of mine rescue and survival operations in

the event of a major disaster.

BUREAU OF LABOR STATISTICS

SALARIES AND EXPENSES

For necessary expenses for the Bureau of Labor Statistics, including advances or reimbursements to State, Federal, and local

agencies and their employees for services rendered, $374,327,000, together with not to exceed $67,257,000, which may be expended from

the Employment Security Administration account in the Unemployment Trust Fund; and $10,000,000 which shall be available able for

obligation for the period July 1, 2001 through June 30, 2002, for

Occupational Employment Statistics.

DEPARTMENTAL MANAGEMENT

SALARIES AND EXPENSES

For necessary expenses for Departmental Management, including the hire of three sedans, and including the management or operation, through contracts, grants or other arrangements of Departmental bilateral and multilateral foreign technical assistance, of

which the funds designated to carry out bilateral assistance under

the international child labor initiative shall be available for obligaVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00016 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.000 pfrm03 PsN: HR1033
13

tion through September 30, 2002, and $37,000,000 for the acquisition of Departmental information technology, architecture, infrastructure, equipment, software and related needs which will be allocated by the Department’s Chief Information Officer in accordance

with the Department’s capital investment management process to

assure a sound investment strategy; $380,529,000; together with not

to exceed $310,000, which may be expended from the Employment

Security Administration account in the Unemployment Trust Fund:

Provided, That no funds made available by this Act may be used

by the Solicitor of Labor to participate in a review in any United

States court of appeals of any decision made by the Benefits Review

Board under section 21 of the Longshore and Harbor Workers’ Compensation Act (33 U.S.C. 921) where such participation is precluded

by the decision of the United States Supreme Court in Director, Office of Workers’ Compensation Programs v. Newport News Shipbuilding, 115 S. Ct. 1278 (1995), notwithstanding any provisions to

the contrary contained in Rule 15 of the Federal Rules of Appellate

Procedure: Provided further, That no funds made available by this

Act may be used by the Secretary of Labor to review a decision

under the Longshore and Harbor Workers’ Compensation Act (33

U.S.C. 901 et seq.) that has been appealed and that has been pending before the Benefits Review Board for more than 12 months: Provided further, That any such decision pending a review by the Benefits Review Board for more than 1 year shall be considered affirmed

by the Benefits Review Board on the 1-year anniversary of the filing

of the appeal, and shall be considered the final order of the Board

for purposes of obtaining a review in the United States courts of appeals: Provided further, That these provisions shall not be applicable to the review or appeal of any decision issued under the Black

Lung Benefits Act (30 U.S.C. 901 et seq.): Provided further, That beginning in fiscal year 2001, there is established in the Department

of Labor an office of disability employment policy which shall,

under the overall direction of the Secretary, provide leadership, develop policy and initiatives, and award grants furthering the objective of eliminating barriers to the training and employment of people with disabilities. Such office shall be headed by an assistant secretary: Provided further, That of amounts provided under this head,

not more than $23,002,000 is for this purpose.

VETERANS EMPLOYMENT AND TRAINING

Not to exceed $186,913,000 may be derived from the Employment Security Administration account in the Unemployment Trust

Fund to carry out the provisions of 38 U.S.C. 4100–4110A, 4212,

4214, and 4321–4327, and Public Law 103–353, and which shall be

available for obligation by the States through December 31, 2001.

To carry out the Stewart B. McKinney Homeless Assistance Act and

section 168 of the Workforce Investment Act of 1998, $24,800,000,

of which $7,300,000 shall be available for obligation for the period

July 1, 2001, through June 30, 2002.

OFFICE OF INSPECTOR GENERAL

For salaries and expenses of the Office of Inspector General in

carrying out the provisions of the Inspector General Act of 1978, as

amended, $50,015,000, together with not to exceed $4,770,000,

14

which may be expended from the Employment Security Administration account in the Unemployment Trust Fund.

GENERAL PROVISIONS

SEC. 101. None of the funds appropriated in this title for the

Job Corps shall be used to pay the compensation of an individual,

either as direct costs or any proration as an indirect cost, at a rate

in excess of Executive Level II.

(TRANSFER OF FUNDS)

SEC. 102. Not to exceed 1 percent of any discretionary funds

(pursuant to the Balanced Budget and Emergency Deficit Control

Act of 1985, as amended) which are appropriated for the current fiscal year for the Department of Labor in this Act may be transferred

between appropriations, but no such appropriation shall be increased by more than 3 percent by any such transfer: Provided, That

the Appropriations Committees of both Houses of Congress are notified at least 15 days in advance of any transfer.

SEC. 103. Section 403(a)(5)(C)(viii) of the Social Security Act

(42 U.S.C. 603(a)(5)(C)(viii)) (as amended by section 801(b)(1)(A) of

the Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 2000 (as enacted

into law by section 1000(a)(4) of Public Law 106–113)) is amended

by striking ‘‘3 years’’ and inserting ‘‘5 years’’.

SEC. 104. No funds appropriated in this Act or any other Act

making appropriations for fiscal year 2001 may be used to implement or enforce the proposed and final regulations appearing in 65

Fed. Reg. 43528–43583, regarding temporary alien labor certification applications and petitions for admission of nonimmigrant

workers, or any similar or successor rule with an effective date prior

to October 1, 2001: Provided, That nothing in this section shall prohibit the development or revision of such a rule, or the publication

of any similar or successor proposed or final rule, or the provision

of training or technical assistance, or other activities necessary and

appropriate in preparing to implement such a rule with an effective

date after September 30, 2001.

SEC. 105. Section 218(c)(4) of the Immigration and Nationality

Act (8 U.S.C. 1188(c)(4)) is amended by adding at the end the following new sentence: ‘‘The determination as to whether the housing

furnished by an employer for an H–2A worker meets the requirements imposed by this paragraph must be made prior to the date

specified in paragraph (3)(A) by which the Secretary of Labor is required to make a certification described in subsection (a)(1) with respect to a petition for the importation of such worker.’’.

SEC. 106. Section 286(s)(6) of the Immigration and Naturalization Act (8 U.S.C. 1356(s)(6)) is amended by inserting, ‘‘and section

212(a)(5)(A)’’ after the second reference to ‘‘section 212(n)(1)’’.

SEC. 107. (a) Section 403(a)(5) of the Social Security Act (as

amended by section 806(b) of the Departments of Labor, Health and

Human Services, and Education, and Related Agencies Appropriations Act, 2000 (as enacted into law by section 1000(a)(4) of Public

Law 106–113)) is amended by striking subparagraph (E) and redesVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00018 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.000 pfrm03 PsN: HR1033
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ignating subparagraphs (F) through (K) as subparagraphs (E)

through (J), respectively.

(b) The Social Security Act (as amended by section 806(b) of the

Departments of Labor, Health and Human Services, and Education,

and Related Agencies Appropriations Act, 2000 (as enacted into law

by section 1000(a)(4) of Public Law 106–113)) is further amended

as follows:

(1) Section 403(a)(5)(A)(i) (42 U.S.C. 603(a)(5)(A)(i)) is

amended by striking ‘‘subparagraph (I)’’ and inserting ‘‘subparagraph (H)’’.

(2) Subclause (I) of each of subparagraphs (A)(iv) and

(B)(v) of section 403(a)(5) (42 U.S.C. 603(a)(5)(A)(iv)(I) and

(B)(v)(I)) is amended—

(A) in item (aa)—

(i) by striking ‘‘(I)’’ and inserting ‘‘(H)’’; and

(ii) by striking ‘‘(G), and (H)’’ and inserting ‘‘and

(G)’’; and

(B) in item (bb), by striking ‘‘(F)’’ and inserting ‘‘(E)’’.

(3) Section 403(a)(5)(B)(v) (42 U.S.C. 603(a)(5)(B)(v)) is

amended in the matter preceding subclause (I) by striking ‘‘(I)’’

and inserting ‘‘(H)’’.

(4) Subparagraphs (E), (F), and (G)(i) of section 403(a)(5)

(42 U.S.C. 603(a)(5)), as so redesignated by subsection (a) of

this section, are each amended by striking ‘‘(I)’’ and inserting

‘‘(H)’’.

(5) Section 412(a)(3)(A) (42 U.S.C. 612(a)(3)(A)) is amended

by striking ‘‘403(a)(5)(I)’’ and inserting ‘‘403(a)(5)(H)’’.

(c) Section 403(a)(5)(H)(i)(II) of such Act (42 U.S.C.

603(a)(5)(H)(i))(II) (as redesignated by subsection (a) of this section

and as amended by section 806(b) of the Departments of Labor,

Health and Human Services, and Education, and Related Agencies

Appropriations Act, 2000 (as enacted into law by section 1000(a)(4)

of Public Law 106–113)) is further amended by striking

‘‘$1,450,000,000’’ and inserting ‘‘$1,400,000,000’’.

(d) The amendments made by subsections (a), (b), and (c) of this

section shall take effect on October 1, 2000.

This title may be cited as the ‘‘Department of Labor Appropriations Act, 2001’’.

TITLE II—DEPARTMENT OF HEALTH AND HUMAN

SERVICES

HEALTH RESOURCES AND SERVICES ADMINISTRATION

HEALTH RESOURCES AND SERVICES

For carrying out titles II, III, VII, VIII, X, XII, XIX, and XXVI

of the Public Health Service Act, section 427(a) of the Federal Coal

Mine Health and Safety Act, title V and section 1820 of the Social

Security Act, the Health Care Quality Improvement Act of 1986, as

amended, the Native Hawaiian Health Care Act of 1988, as amended, and the Poison Control Center Enhancement and Awareness

Act, $5,525,476,000, of which $226,224,000 shall be available for

the construction and renovation of health care and other facilities,

and of which $25,000,000 from general revenues, notwithstanding

16

section 1820(j) of the Social Security Act, shall be available for carrying out the Medicare rural hospital flexibility grants program

under section 1820 of such Act: Provided, That the Division of Federal Occupational Health may utilize personal services contracting

to employ professional management/administrative and occupational health professionals: Provided further, That of the funds

made available under this heading, $250,000 shall be available

until expended for facilities renovations at the Gillis W. Long Hansen’s Disease Center: Provided further, That in addition to fees authorized by section 427(b) of the Health Care Quality Improvement

Act of 1986, fees shall be collected for the full disclosure of information under the Act sufficient to recover the full costs of operating the

National Practitioner Data Bank, and shall remain available until

expended to carry out that Act: Provided further, That fees collected

for the full disclosure of information under the ‘‘Health Care Fraud

and Abuse Data Collection Program,’’ authorized by section

1128E(d)(2) of the Social Security Act, shall be sufficient to recover

the full costs of operating the program, and shall remain available

until expended to carry out that Act: Provided further, That no more

than $5,000,000 is available for carrying out the provisions of Public Law 104–73: Provided further, That of the funds made available

under this heading, $253,932,000 shall be for the program under

title X of the Public Health Service Act to provide for voluntary family planning projects: Provided further, That amounts provided to

said projects under such title shall not be expended for abortions,

that all pregnancy counseling shall be nondirective, and that such

amounts shall not be expended for any activity (including the publication or distribution of literature) that in any way tends to promote

public support or opposition to any legislative proposal or candidate

for public office: Provided further, That $589,000,000 shall be for

State AIDS Drug Assistance Programs authorized by section 2616

of the Public Health Service Act: Provided further, That of the

amount provided under this heading, $700,000 shall be for the

American Federation of Negro Affairs Education and Research

Fund of Philadelphia, $900,000 shall be for the Des Moines University Osteopathic Medical Center, $250,000 shall be for the University of Alaska, Anchorage, to train Alaska Natives as psychologists,

$900,000 shall be for Northeastern University in Boston, Massachusetts to train doctors to serve in low-income communities, $500,000

shall be for the University of Alaska, Anchorage, to recruit and

train nurses in rural areas, and $230,000 shall be for the Illinois

Poison Center: Provided further, That, notwithstanding section

502(a)(1) of the Social Security Act, not to exceed $113,728,000 is

available for carrying out special projects of regional and national

significance pursuant to section 501(a)(2) of such Act, of which

$5,000,000 is for Columbia Hospital for Women Medical Center in

Washington, D.C., to support community outreach programs for

women, $5,000,000 is for continuation of the traumatic brain injury

State demonstration projects, and $100,000 is for St. Joseph’s

Health Services of Rhode Island for the Providence Smiles dental

program for low-income children.

For special projects of regional and national significance under

section 501(a)(2) of the Social Security Act, $30,000,000, which shall

become available on October 1, 2001, and shall remain available

17

until September 30, 2002: Provided, That such amount shall not be

counted toward compliance with the allocation required in section

502(a)(1) of such Act: Provided further, That such amount shall be

used only for making competitive grants to provide abstinence education (as defined in section 510(b)(2) of such Act) to adolescents

and for evaluations (including longitudinal evaluations) of activities

under the grants and for Federal costs of administering the grants:

Provided further, That grants shall be made only to public and private entities which agree that, with respect to an adolescent to

whom the entities provide abstinence education under such grant,

the entities will not provide to that adolescent any other education

regarding sexual conduct, except that, in the case of an entity expressly required by law to provide health information or services the

adolescent shall not be precluded from seeking health information

or services from the entity in a different setting than the setting in

which the abstinence education was provided: Provided further,

That the funds expended for such evaluations may not exceed 3.5

percent of such amount.

HEALTH EDUCATION ASSISTANCE LOANS PROGRAM

Such sums as may be necessary to carry out the purpose of the

program, as authorized by title VII of the Public Health Service Act,

as amended. For administrative expenses to carry out the guaranteed loan program, including section 709 of the Public Health Service Act, $3,679,000.

VACCINE INJURY COMPENSATION PROGRAM TRUST FUND

For payments from the Vaccine Injury Compensation Program

Trust Fund, such sums as may be necessary for claims associated

with vaccine-related injury or death with respect to vaccines administered after September 30, 1988, pursuant to subtitle 2 of title XXI

of the Public Health Service Act, to remain available until expended: Provided, That for necessary administrative expenses, not to

exceed $2,992,000 shall be available from the Trust Fund to the

Secretary of Health and Human Services.

CENTERS FOR DISEASE CONTROL AND PREVENTION

DISEASE CONTROL, RESEARCH, AND TRAINING

To carry out titles II, III, VII, XI, XV, XVII, XIX and XXVI of

the Public Health Service Act, sections 101, 102, 103, 201, 202, 203,

301, and 501 of the Federal Mine Safety and Health Act of 1977,

sections 20, 21, and 22 of the Occupational Safety and Health Act,

of 1970, title IV of the Immigration and Nationality Act and section

501 of the Refugee Education Assistance Act of 1980; including insurance of official motor vehicles in foreign countries; and hire,

maintenance, and operation of aircraft, $3,868,027,000, of which

$175,000,000 shall remain available until expended for the facilities

master plan for equipment and construction and renovation of facilities, and in addition, such sums as may be derived from authorized user fees, which shall be credited to this account, and of which

$104,527,000 for international HIV/AIDS programs shall remain

available until September 30, 2002: Provided, That in addition to

amounts provided herein, up to $71,690,000 shall be available from

18

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.

19

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.

20

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 Inter- national Center, $50,514,000.

NATIONAL LIBRARY OF MEDICINE

For carrying out section 301 and title IV of the Public Health

Service Act with respect to health information communications,

$246,801,000, of which $4,000,000 shall be available until expended

for improvement of information systems: Provided, That in fiscal

year 2001, the Library may enter into personal services contracts for

the provision of services in facilities owned, operated, or constructed

under the jurisdiction of the National Institutes of Health.

NATIONAL CENTER FOR COMPLEMENTARY AND ALTERNATIVE

MEDICINE

For carrying out section 301 and title IV of the Public Health

Service Act with respect to complementary and alternative medicine,

$89,211,000.

NATIONAL CENTER ON MINORITY HEALTH AND HEALTH DISPARITIES

For carrying out section 301 and title IV of the Public Health

Service Act with respect to minority health and health disparities

research, $130,200,000.

OFFICE OF THE DIRECTOR

(INCLUDING TRANSFER OF FUNDS)

For carrying out the responsibilities of the Office of the Director, National Institutes of Health, $213,581,000, of which $48,271,000

shall be for the Office of AIDS Research: Provided, That funding

shall be available for the purchase of not to exceed 20 passenger

motor vehicles for replacement only: Provided further, That the Director may direct up to 1 percent of the total amount made available

in this or any other Act to all National Institutes of Health appropriations to activities the Director may so designate: Provided further, That no such appropriation shall be decreased by more than

1 percent by any such transfers and that the Congress is promptly

notified of the transfer: Provided further, That the National Institutes of Health is authorized to collect third party payments for the

cost of clinical services that are incurred in National Institutes of

21

Health research facilities and that such payments shall be credited

to the National Institutes of Health Management Fund: Provided

further, That all funds credited to the National Institutes of Health

Management Fund shall remain available for one fiscal year after

the fiscal year in which they are deposited: Provided further, That

up to $500,000 shall be available to carry out section 499 of the

Public Health Service Act: Provided further, That, notwithstanding

section 499(k)(10) of the Public Health Service Act, funds from the

Foundation for the National Institutes of Health may be transferred

to the National Institutes of Health.

BUILDINGS AND FACILITIES

For the study of, construction of, and acquisition of equipment

for, facilities of or used by the National Institutes of Health, including the acquisition of real property, $153,790,000, to remain available until expended, of which $47,300,000 shall be for the National

Neuroscience Research Center: Provided, That notwithstanding any

other provision of law, a single contract or related contracts for the

development and construction of the first phase of the National Neuroscience Research Center may be employed which collectively include the full scope of the project: Provided further, That the solicitation and contract shall contain the clause ‘‘availability of funds’’

found at 48 CFR 52.232–18.

SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES

ADMINISTRATION

SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES

For carrying out titles V and XIX of the Public Health Service

Act with respect to substance abuse and mental health services, the

Protection and Advocacy for Mentally Ill Individuals Act of 1986,

and section 301 of the Public Health Service Act with respect to program management, $2,958,001,000, of which $24,605,000 shall be

available for the projects and in the amounts specified in the statement of the managers on the conference report accompanying this

Act.

AGENCY FOR HEALTHCARE RESEARCH AND QUALITY

HEALTHCARE RESEARCH AND QUALITY

For carrying out titles III and IX of the Public Health Service

Act, and part A of title XI of the Social Security Act, $104,963,000;

in addition, amounts received from Freedom of Information Act fees,

reimbursable and interagency agreements, and the sale of data

shall be credited to this appropriation and shall remain available

until expended: Provided, That the amount made available pursuant to section 926(b) of the Public Health Service Act shall not exceed $164,980,000.

22

HEALTH CARE FINANCING ADMINISTRATION

GRANTS TO STATES FOR MEDICAID

For carrying out, except as otherwise provided, titles XI and

XIX of the Social Security Act, $93,586,251,000, to remain available

until expended.

For making, after May 31, 2001, payments to States under title

XIX of the Social Security Act for the last quarter of fiscal year 2001

for unanticipated costs, incurred for the current fiscal year, such

sums as may be necessary.

For making payments to States or in the case of section 1928

on behalf of States under title XIX of the Social Security Act for the

first quarter of fiscal year 2002, $36,207,551,000, to remain available until expended.

Payment under title XIX may be made for any quarter with respect to a State plan or plan amendment in effect during such quarter, if submitted in or prior to such quarter and approved in that

or any subsequent quarter.

PAYMENTS TO HEALTH CARE TRUST FUNDS

For payment to the Federal Hospital Insurance and the Federal

Supplementary Medical Insurance Trust Funds, as provided under

sections 217(g) and 1844 of the Social Security Act, sections 103(c)

and 111(d) of the Social Security Amendments of 1965, section

278(d) of Public Law 97–248, and for administrative expenses incurred pursuant to section 201(g) of the Social Security Act,

$70,381,600,000.

PROGRAM MANAGEMENT

For carrying out, except as otherwise provided, titles XI, XVIII,

XIX, and XXI of the Social Security Act, titles XIII and XXVII of

the Public Health Service Act, and the Clinical Laboratory Improvement Amendments of 1988, not to exceed $2,246,326,000, to be

transferred from the Federal Hospital Insurance and the Federal

Supplementary Medical Insurance Trust Funds, as authorized by

section 201(g) of the Social Security Act; together with all funds collected in accordance with section 353 of the Public Health Service

Act and such sums as may be collected from authorized user fees

and the sale of data, which shall remain available until expended,

and together with administrative fees collected relative to Medicare

overpayment recovery activities, which shall remain available until

expended: Provided, That all funds derived in accordance with 31

U.S.C. 9701 from organizations established under title XIII of the

Public Health Service Act shall be credited to and available for carrying out the purposes of this appropriation: Provided further, That

$18,000,000 appropriated under this heading for the managed care

system redesign shall remain available until expended: Provided

further, That $20,000,000 of the amount available for research,

demonstration, and evaluation activities shall be available to continue carrying out demonstration projects on Medicaid coverage of

community-based attendant care services for people with disabilities

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retary of Health and Human Services is directed to enter into an

agreement with the Mind-Body Institute of Boston, Massachusetts to

conduct a demonstration of a lifestyle modification program: Provided further, That $2,800,000 of the amount available for research,

demonstration, and evaluation activities shall be awarded for administration, evaluation, quality monitoring and peer review of this

lifestyle modification demonstration: Provided further, That

$2,800,000 of the amount available for research, demonstration, and

evaluation activities shall be awarded to a joint application from

the University of Pittsburgh, Case Western Reserve in Cleveland,

Ohio, and Mt. Sinai Hospital in Miami, Florida, to use integrated

nursing services and technology to implement daily monitoring of

congestive heart failure patients in underserved populations in accordance with established clinical guidelines: Provided further,

That $500,000 of the amount available for research, demonstration,

and evaluation activities shall be awarded to the University of Pittsburgh Medical Center and University of Pennsylvania for a study

of the efficacy of surgical versus non-surgical management of abdominal aneurysms: Provided further, That $650,000 of the amount

available for research, demonstration, and evaluation activities

shall be awarded to the Vascular Surgery Outcomes Initiative at

Dartmouth College: Provided further, That up to $300,000 of the

amount available for research, demonstration, and evaluation activities shall be awarded to the United States-Mexico Border Counties Coalition for a study to determine the unreimbursed costs incurred to treat undocumented aliens for medical emergencies in

southwest border States, their border counties, and hospitals within

the jurisdiction of these States and counties: Provided further, That

$1,700,000 of the amount available for research, demonstration, and

evaluation activities shall be awarded to the AIDS Healthcare

Foundation in Los Angeles for a demonstration of residential and

outpatient treatment facilities: Provided further, That $350,000 of

the amount available for research, demonstration, and evaluation

activities shall be awarded to the Cook County, Illinois Bureau of

Health for the Asthma Champion Initiative demonstration to reduce

morbidity and mortality from asthma in high prevalence areas: Provided further, That $1,000,000 of the amount available for research,

demonstration, and evaluation activities shall be awarded to the

West Virginia University School of Medicine’s Eye Center to test

interventions and improve the quality of life for individuals with

low vision, with a particular focus on the elderly: Provided further,

That $1,000,000 of the amount available for research, demonstration, and evaluation activities shall be awarded to the Iowa Department of Public Health for the establishment and operation of a mercantile prescription drug purchasing cooperative or non-profit corporation demonstration: Provided further, That $691,000 of the

amount available for research, demonstration, and evaluation activities shall be awarded to Ohio State University to determine the

benefits of compliance packaging: Provided further, That $855,000

of the amount available for research, demonstration and evaluation

activities shall be awarded to Children’s Hospice International for

a demonstration project to provide a continuum of care for children

with life-threatening conditions and their families: Provided further,

That $921,000 of the amount available for research, demonstration,

24

and evaluation activities shall be awarded to Equip for Equality for

a demonstration project to document the impact of an independent

investigative unit that will examine deaths or other serious allegations of abuse and neglect of people with disabilities at facilities in

Illinois: Provided further, That $1,000,000 of the amount available

for research, demonstration, and evaluation activities shall be

awarded to Duke University Medical Center to demonstrate the potential savings in the Medicare program of a reimbursement system

based on preventative care: Provided further, That $1,843,000 of the

amount available for research, demonstration, and evaluation activities shall be awarded to Bucks County, Pennsylvania, for a

health improvement project: Provided further, That $255,000 of the

amount available for research, demonstration, and evaluation activities shall be awarded to the LA Care Health Plan in Los Angeles, California for a demonstration program to improve clinical data

coordination among Medicaid providers: Provided further, That

$646,000 of the amount available for research, demonstration, and

evaluation activities shall be for the Shelby County Regional Medical Center to establish a Master Patient Index to determine patient

Medicaid/TennCare eligibility: Provided further, That the Secretary

of Health and Human Services is directed to collect fees in fiscal

year 2001 from Medicare∂Choice organizations pursuant to section

1857(e)(2) of the Social Security Act and from eligible organizations

with risk-sharing contracts under section 1876 of that Act pursuant

to section 1876(k)(4)(D) of that Act.

HEALTH MAINTENANCE ORGANIZATION LOAN AND LOAN GUARANTEE

FUND

For carrying out subsections (d) and (e) of section 1308 of the

Public Health Service Act, any amounts received by the Secretary in

connection with loans and loan guarantees under title XIII of the

Public Health Service Act, to be available without fiscal year limitation for the payment of outstanding obligations. During fiscal year

2001, no commitments for direct loans or loan guarantees shall be

made.

ADMINISTRATION FOR CHILDREN AND FAMILIES

PAYMENTS TO STATES FOR CHILD SUPPORT ENFORCEMENT AND

FAMILY SUPPORT PROGRAMS

For making payments to States or other non-Federal entities

under titles I, IV–D, X, XI, XIV, and XVI of the Social Security Act

and the Act of July 5, 1960 (24 U.S.C. ch. 9), $2,441,800,000, to remain available until expended; and for such purposes for the first

quarter of fiscal year 2002, $1,000,000,000, to remain available

until expended.

For making payments to each State for carrying out the program of Aid to Families with Dependent Children under title IV–

A of the Social Security Act before the effective date of the program

of Temporary Assistance to Needy Families (TANF) with respect to

such State, such sums as may be necessary: Provided, That the sum

of the amounts available to a State with respect to expenditures

under such title IV–A in fiscal year 1997 under this appropriation

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bility and Work Opportunity Reconciliation Act of 1996 shall not exceed the limitations under section 116(b) of such Act.

For making, after May 31 of the current fiscal year, payments

to States or other non-Federal entities under titles I, IV–D, X, XI,

XIV, and XVI of the Social Security Act and the Act of July 5, 1960

(24 U.S.C. ch. 9), for the last 3 months of the current year for unanticipated costs, incurred for the current fiscal year, such sums as

may be necessary.

LOW INCOME HOME ENERGY ASSISTANCE

For making payments under title XXVI of the Omnibus Budget

Reconciliation Act of 1981, in addition to amounts already appropriated for fiscal year 2001, $300,000,000.

For making payments under title XXVI of the Omnibus Reconciliation Act of 1981, $300,000,000: Provided, That these funds

are hereby designated by the Congress to be emergency requirements

pursuant to section 251(b)(2)(A) of the Balanced Budget and Emergency Deficit Control Act of 1985: Provided further, That these

funds shall be made available only after submission to the Congress

of a formal budget request by the President that includes designation of the entire amount of the request as an emergency requirement as defined in such Act.

REFUGEE AND ENTRANT ASSISTANCE

For making payments for refugee and entrant assistance activities authorized by title IV of the Immigration and Nationality Act

and section 501 of the Refugee Education Assistance Act of 1980

(Public Law 96–422), $423,109,000: Provided, That funds appropriated pursuant to section 414(a) of the Immigration and Nationality Act for fiscal year 2001 shall be available for the costs of assistance provided and other activities through September 30, 2003:

Provided further, That up to $5,000,000 is available to carry out the

Trafficking Victims Protection Act of 2000.

For carrying out section 5 of the Torture Victims Relief Act of

1998 (Public Law 105–320), $10,000,000.

PAYMENTS TO STATES FOR THE CHILD CARE AND DEVELOPMENT

BLOCK GRANT

For carrying out sections 658A through 658R of the Omnibus

Budget Reconciliation Act of 1981 (The Child Care and Development Block Grant Act of 1990), in addition to amounts already appropriated for fiscal year 2001, $817,328,000, such funds shall be

used to supplement, not supplant state general revenue funds for

child care assistance for low-income families: Provided, That of the

funds appropriated for fiscal year 2001, $19,120,000 shall be available for child care resource and referral and school-aged child care

activities, of which $1,000,000 shall be for the Child Care Aware

toll free hotline: Provided further, That of the funds appropriated

for fiscal year 2001, in addition to the amounts required to be reserved by the States under section 658G, $272,672,000 shall be reserved by the States for activities authorized under section 658G, of

which $100,000,000 shall be for activities that improve the quality

of infant and toddler child care: Provided further, That of the funds

26

appropriated for fiscal year 2001, $10,000,000 shall be for use by

the Secretary for child care research, demonstration, and evaluation

activities.

SOCIAL SERVICES BLOCK GRANT

For making grants to States pursuant to section 2002 of the Social Security Act, $1,725,000,000: Provided, That notwithstanding

section 2003(c) of such Act, as amended, the amount specified for allocation under such section for fiscal year 2001 shall be

$1,725,000,000: Provided further, That, notwithstanding subparagraph (B) of section 404(d)(2) of such Act, the applicable percent

specified under such subparagraph for a State to carry out State

programs pursuant to title XX of such Act shall be 10 percent.

CHILDREN AND FAMILIES SERVICES PROGRAMS

(INCLUDING RESCISSIONS)

For carrying out, except as otherwise provided, the Runaway

and Homeless Youth Act, the Developmental Disabilities Assistance

and Bill of Rights Act, the Head Start Act, the Child Abuse Prevention and Treatment Act, the Native American Programs Act of 1974,

title II of Public Law 95–266 (adoption opportunities), the Adoption

and Safe Families Act of 1997 (Public Law 105–89), the Abandoned

Infants Assistance Act of 1988, the Early Learning Opportunities

Act, part B(1) of title IV and sections 413, 429A, 1110, and 1115

of the Social Security Act, and sections 40155, 40211, and 40241 of

Public Law 103–322; for making payments under the Community

Services Block Grant Act, section 473A of the Social Security Act,

and title IV of Public Law 105–285, and for necessary administrative expenses to carry out said Acts and titles I, IV, X, XI, XIV, XVI,

and XX of the Social Security Act, the Act of July 5, 1960 (24

U.S.C. ch. 9), the Omnibus Budget Reconciliation Act of 1981, title

IV of the Immigration and Nationality Act, section 501 of the Refugee Education Assistance Act of 1980, section 5 of the Torture Victims Relief Act of 1998 (Public Law 105–320), sections 40155,

40211, and 40241 of Public Law 103–322 and section 126 and titles

IV and V of Public Law 100–485, $7,956,345,000, of which

$43,000,000, to remain available until September 30, 2002, shall be

for grants to States for adoption incentive payments, as authorized

by section 473A of title IV of the Social Security Act (42 U.S.C. 670–

679) and may be made for adoptions completed in fiscal years 1999

and 2000; of which $682,876,000 shall be for making payments

under the Community Services Block Grant Act; and of which

$6,200,000,000 shall be for making payments under the Head Start

Act, of which $1,400,000,000 shall become available October 1, 2001

and remain available through September 30, 2002: Provided, That

to the extent Community Services Block Grant funds are distributed

as grant funds by a State to an eligible entity as provided under

the Act, and have not been expended by such entity, they shall remain with such entity for carryover into the next fiscal year for expenditure by such entity consistent with program purposes: Provided further, That the Secretary shall establish procedures regarding the disposition of intangible property which permits grant

funds, or intangible assets acquired with funds authorized under

27

section 680 of the Community Services Block Grant Act, as amended, to become the sole property of such grantees after a period of not

more than 12 years after the end of the grant for purposes and uses

consistent with the original grant.

Funds appropriated for fiscal year 2001 under section 429A(e),

part B of title IV of the Social Security Act shall be reduced by

$6,000,000.

Funds appropriated for fiscal year 2001 under section 413(h)(1) of the Social Security Act shall be reduced by $15,000,000.

PROMOTING SAFE AND STABLE FAMILIES

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

PAYMENTS TO STATES FOR FOSTER CARE AND ADOPTION ASSISTANCE

For making payments to States or other non-Federal entities under title IV–E of the Social Security Act, $4,863,100,000.

For making payments to States or other non-Federal entities

under title IV–E of the Social Security Act, for the first quarter of

fiscal year 2002, $1,735,900,000.

ADMINISTRATION ON AGING

AGING SERVICES PROGRAMS

For carrying out, to the extent not otherwise provided, the Older

Americans Act of 1965, as amended, and section 398 of the Public

Health Service Act, $1,103,135,000, of which $5,000,000 shall be

available for activities regarding medication management, screening, and education to prevent incorrect medication and adverse

drug reactions: Provided, That notwithstanding section 308(b)(1) of

the Older Americans Act of 1965, as amended, the amounts available to each State for administration of the State plan under title

III of such Act shall be reduced not more than 5 percent below the

amount that was available to such State for such purpose for fiscal

year 1995.

OFFICE OF THE SECRETARY

GENERAL DEPARTMENTAL MANAGEMENT

For necessary expenses, not otherwise provided, for general departmental management, including hire of six sedans, and for carrying out titles III, XVII, and XX of the Public Health Service Act,

and the United States-Mexico Border Health Commission Act,

$285,224,000, together with $5,851,000, to be transferred and expended as authorized by section 201(g)(1) of the Social Security Act

from the Hospital Insurance Trust Fund and the Supplemental

Medical Insurance Trust Fund: Provided further, That of the funds

made available under this heading for carrying out title XX of the

Public Health Service Act, $10,377,000 shall be for activities specified under section 2003(b)(2), of which $10,157,000 shall be for prevention service demonstration grants under section 510(b)(2) of title

V of the Social Security Act, as amended, without application of the

limitation of section 2010(c) of said title XX: Provided further, That

no funds shall be obligated for minority AIDS prevention and treatVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00031 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.000 pfrm03 PsN: HR1033
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ment activities until the Department of Health and Human Services

submits an operating plan to the House and Senate Committees on

Appropriations.

OFFICE OF INSPECTOR GENERAL

For expenses necessary for the Office of Inspector General in

carrying out the provisions of the Inspector General Act of 1978, as

amended, $33,849,000: Provided, That of such amount, necessary

sums are available for providing protective services to the Secretary

and investigating non-payment of child support cases for which

non-payment is a Federal offense under 18 U.S.C. 228, each of

which activities is hereby authorized in this and subsequent fiscal

years.

OFFICE FOR CIVIL RIGHTS

For expenses necessary for the Office for Civil Rights, $24,742,000, together with not to exceed $3,314,000, to be transferred and expended as authorized by section 201(g)(1) of the Social

Security Act from the Hospital Insurance Trust Fund and the Supplemental Medical Insurance Trust Fund.

POLICY RESEARCH

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

RETIREMENT PAY AND MEDICAL BENEFITS FOR COMMISSIONED

OFFICERS

For retirement pay and medical benefits of Public Health Service Commissioned Officers as authorized by law, for payments

under the Retired Serviceman’s Family Protection Plan and Survivor Benefit Plan, for medical care of dependents and retired personnel under the Dependents’ Medical Care Act (10 U.S.C. ch. 55),

and for payments pursuant to section 229(b) of the Social Security

Act (42 U.S.C. 429(b)), such amounts as may be required during the

current fiscal year.

PUBLIC HEALTH AND SOCIAL SERVICES EMERGENCY FUND

For expenses necessary to support activities related to countering potential biological, disease and chemical threats to civilian

populations, $241,231,000: Provided, That this amount is distributed as follows: Centers for Disease Control and Prevention,

$181,131,000, of which $32,000,000 shall be for the Health Alert

Network and $18,040,000 shall be for the continued study of the anthrax vaccine; and Office of Emergency Preparedness, $60,100,000.

GENERAL PROVISIONS

SEC. 201. Funds appropriated in this title shall be available for

not to exceed $37,000 for official reception and representation expenses when specifically approved by the Secretary.

SEC. 202. The Secretary shall make available through assignment not more than 60 employees of the Public Health Service to assist in child survival activities and to work in AIDS programs

through and with funds provided by the Agency for International

29

Development, the United Nations International Children’s Emergency Fund or the World Health Organization.

SEC. 203. None of the funds appropriated under this Act may

be used to implement section 399L(b) of the Public Health Service

Act or section 1503 of the National Institutes of Health Revitalization Act of 1993, Public Law 103–43.

SEC. 204. None of the funds appropriated in this Act for the

National Institutes of Health and the Substance Abuse and Mental

Health Services Administration shall be used to pay the salary of

an individual, through a grant or other extramural mechanism, at

a rate in excess of Executive Level I.

SEC. 205. None of the funds appropriated in this Act may be

expended pursuant to section 241 of the Public Health Service Act,

except for funds specifically provided for in this Act, or for other

taps and assessments made by any office located in the Department

of Health and Human Services, prior to the Secretary’s preparation

and submission of a report to the Committee on Appropriations of

the Senate and of the House detailing the planned uses of such

funds.

(TRANSFER OF FUNDS)

SEC. 206. Not to exceed 1 percent of any discretionary funds

(pursuant to the Balanced Budget and Emergency Deficit Control

Act of 1985, as amended) which are appropriated for the current fiscal year for the Department of Health and Human Services in this

Act may be transferred between appropriations, but no such appropriation shall be increased by more than 3 percent by any such

transfer: Provided, That the Appropriations Committees of both

Houses of Congress are notified at least 15 days in advance of any

transfer.

SEC. 207. The Director of the National Institutes of Health,

jointly with the Director of the Office of AIDS Research, may transfer up to 3 percent among institutes, centers, and divisions from the

total amounts identified by these two Directors as funding for research pertaining to the human immunodeficiency virus: Provided,

That the Congress is promptly notified of the transfer.

SEC. 208. Of the amounts made available in this Act for the

National Institutes of Health, the amount for research related to the

human immunodeficiency virus, as jointly determined by the Director of the National Institutes of Health and the Director of the Office

of AIDS Research, shall be made available to the ‘‘Office of AIDS

Research’’ account. The Director of the Office of AIDS Research

shall transfer from such account amounts necessary to carry out section 2353(d)(3) of the Public Health Service Act.

SEC. 209. None of the funds appropriated in this Act may be

made available to any entity under title X of the Public Health

Service Act unless the applicant for the award certifies to the Secretary that it encourages family participation in the decision of minors to seek family planning services and that it provides counseling to minors on how to resist attempts to coerce minors into engaging in sexual activities.

SEC. 210. None of the funds appropriated by this Act (including

funds appropriated to any trust fund) may be used to carry out the

Medicare+Choice program if the Secretary denies participation in

30

such program to an otherwise eligible entity (including a Provider

Sponsored Organization) because the entity informs the Secretary

that it will not provide, pay for, provide coverage of, or provide referrals for abortions: Provided, That the Secretary shall make appropriate prospective adjustments to the capitation payment to such

an entity (based on an actuarially sound estimate of the expected

costs of providing the service to such entity’s enrollees): Provided

further, That nothing in this section shall be construed to change

the Medicare program’s coverage for such services and a

Medicare+Choice organization described in this section shall be responsible for informing enrollees where to obtain information about

all Medicare covered services.

SEC. 211. Notwithstanding any other provision of law, no provider of services under title X of the Public Health Service Act shall

be exempt from any State law requiring notification or the reporting

of child abuse, child molestation, sexual abuse, rape, or incest.

SEC. 212. The Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1990 (Public Law 101–167) is

amended—

(1) in section 599D (8 U.S.C. 1157 note)—

(A) in subsection (b)(3), by striking ‘‘1997, 1998, 1999,

and 2000’’ and inserting ‘‘1997, 1998, 1999, 2000 and

2001’’; and

(B) in subsection (e), by striking ‘‘October 1, 2000’’ each

place it appears and inserting ‘‘October 1, 2001’’; and

(2) in section 599E (8 U.S.C. 1255 note) in subsection (b)(2),

by striking ‘‘September 30, 2000’’ and inserting ‘‘September 30,

2001’’.

SEC. 213. None of the funds provided in this Act or in any other

Act making appropriations for fiscal year 2001 may be used to administer or implement in Arizona or in the Kansas City, Missouri

or in the Kansas City, Kansas area the Medicare Competitive Pricing Demonstration Project (operated by the Secretary of Health and

Human Services).

SEC. 214. (a) Except as provided by subsection (e) none of the

funds appropriated by this Act may be used to withhold substance

abuse funding from a State pursuant to section 1926 of the Public

Health Service Act (42 U.S.C. 300x–26) if such State certifies to the

Secretary of Health and Human Services by March 1, 2001 that the

State will commit additional State funds, in accordance with subsection (b), to ensure compliance with State laws prohibiting the

sale of tobacco products to individuals under 18 years of age.

(b) The amount of funds to be committed by a State under subsection (a) shall be equal to 1 percent of such State’s substance

abuse block grant allocation for each percentage point by which the

State misses the retailer compliance rate goal established by the

Secretary of Health and Human Services under section 1926 of such

Act.

(c) The State is to maintain State expenditures in fiscal year

2001 for tobacco prevention programs and for compliance activities

at a level that is not less than the level of such expenditures maintained by the State for fiscal year 2000, and adding to that level the

additional funds for tobacco compliance activities required under

subsection (a). The State is to submit a report to the Secretary on

31

all fiscal year 2000 State expenditures and all fiscal year 2001 obligations for tobacco prevention and compliance activities by program

activity by July 31, 2001.

(d) The Secretary shall exercise discretion in enforcing the timing of the State obligation of the additional funds required by the

certification described in subsection (a) as late as July 31, 2001.

(e) None of the funds appropriated by this Act may be used to

withhold substance abuse funding pursuant to section 1926 from a

territory that receives less than $1,000,000.

SEC. 215. Section 448 of the Public Health Service Act (42

U.S.C. 285g) is amended by inserting ‘‘gynecologic health,’’ after

‘‘with respect to’’.

SEC. 216. None of the funds appropriated under this Act shall

be expended by the National Institutes of Health on a contract for

the care of the 288 chimpanzees acquired by the National Institutes

of Health from the Coulston Foundation, unless the contractor is accredited by the Association for the Assessment and Accreditation of

Laboratory Animal Care International or has a Public Health Services assurance, and has not been charged multiple times with egregious violations of the Animal Welfare Act: Provided, That the requirements of section 481(A)(e)(1) shall not apply to funds awarded

to nonhuman primate research facilities of special interest to NIH.

SEC. 217. No grants may be awarded under the first paragraph

under the heading ‘‘Department of Health and Human Services,

Health Resources and Services Administration, Health Resources

and Services’’ in chapter 4 of title II of the Emergency Supplemental

Act, 2000 (Public Law 106–246, division B) until March 1, 2001.

SEC. 218. (a) The second sentence of section 5948(d) of title 5,

United States Code, is amended to read as follows: ‘‘No agreement

shall be entered into under this section later than September 30,

2005, nor shall any agreement cover a period of service extending

beyond September 30, 2007.’’.

(b) Section 3 of the Federal Physicians Comparability Allowance Act of 1978 (5 U.S.C. 5948 note) is amended by striking ‘‘September 30, 2002’’ and inserting ‘‘September 30, 2007’’.

SEC. 219. (a) Congress makes the following findings:

(1) Organ procurement organizations play an important

role in the effort to increase organ donation in the United

States.

(2) The current process for the certification and recertification of organ procurement organizations conducted by the Department of Health and Human Services has created a level of

uncertainty that is interfering with the effectiveness of organ

procurement organizations in raising the level of organ donation.

(3) The General Accounting Office, the Institute of Medicine, and the Harvard School of Public Health have identified

substantial limitations in the organ procurement organization

certification and recertification process and have recommended

changes in that process.

(4) The limitations in the recertification process include:

(A) An exclusive reliance on population-based measures

of performance that do not account for the potential in the

population for organ donation and do not permit considerVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00035 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.000 pfrm03 PsN: HR1033
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ation of other outcome and process standards that would

more accurately reflect the relative capability and performance of each organ procurement organization.

(B) A lack of due process to appeal to the Secretary of

Health and Human Services for recertification on either

substantive or procedural grounds.

(5) The Secretary of Health and Human Services has the

authority under section 1138(b)(1)(A)(i) of the Social Security

Act (42 U.S.C. 1320b–8(b)(1)(A)(i)) to extend the period for recertification of an organ procurement organization from 2 to 4

years on the basis of its past practices in order to avoid the inappropriate disruption of the nation’s organ system.

(6) The Secretary of Health and Human Services can use

the extended period described in paragraph (5) for recertification of all organ procurement organizations to—

(A) develop improved performance measures that

would reflect organ donor potential and interim outcomes,

and to test these measures to ensure that they accurately

measure performance differences among the organ procurement organizations; and

(B) improve the overall certification process by incorporating process as well as outcome performance measures,

and developing equitable processes for appeals.

(b) Section 371(b)(1) of the Public Health Service Act (42 U.S.C.

273(b)(1)) is amended—

(1) by redesignating subparagraphs (D) through (G) as subparagraphs (E) through (H), respectively;

(2) by realigning the margin of subparagraph (F) (as so redesignated) so as to align with subparagraph (E) (as so redesignated); and

(3) by inserting after subparagraph (C) the following:

‘‘(D) notwithstanding any other provision of law, has met

the other requirements of this section and has been certified or

recertified by the Secretary within the previous 4-year period as

meeting the performance standards to be a qualified organ procurement organization through a process that either—

‘‘(i) granted certification or recertification within such

4-year period with such certification or recertification in effect as of January 1, 2000, and remaining in effect through

the earlier of—

‘‘(I) January 1, 2002; or

‘‘(II) the completion of recertification under the requirements of clause (ii); or

‘‘(ii) is defined through regulations that are promulgated by the Secretary by not later than January 1, 2002,

that—

‘‘(I) require recertifications of qualified organ procurement organizations not more frequently than once

every 4 years;

‘‘(II) rely on outcome and process performance

measures that are based on empirical evidence, obtained through reasonable efforts, of organ donor potential and other related factors in each service area of

qualified organ procurement organizations;

33

‘‘(III) use multiple outcome measures as part of the

certification process; and

‘‘(IV) provide for a qualified organ procurement organization to appeal a decertification to the Secretary

on substantive and procedural grounds;’’.

SEC. 220. (a) In order for the Centers for Disease Control and

Prevention to carry out international HIV/AIDS and other infectious disease, chronic and environmental disease, and other health

activities abroad during fiscal year 2001, the Secretary of Health

and Human Services is authorized to—

(1) utilize the authorities contained in subsection 2(c) of the

State Department Basic Authorities Act of 1956, as amended,

subject to the limitations set forth in subsection (b), and

(2) enter into reimbursable agreements with the Department of State using any funds appropriated to the Department

of Health and Human Services, for the purposes for which the

funds were appropriated in accordance with authority granted

to the Secretary of Health and Human Services or under authority governing the activities of the Department of State.

(b) In exercising the authority set forth in subsection (a)(1), the

Secretary of Health and Human Services—

(1) shall not award contracts for performance of an inherently governmental function; and

(2) shall follow otherwise applicable Federal procurement

laws and regulations to the maximum extent practicable.

SEC. 221. Notwithstanding any other provision of law, the Director, National Institutes of Health, may enter into and administer

a long-term lease for facilities for the purpose of providing laboratory, office and other space for biomedical and behavioral research

at the Bayview Campus in Baltimore, Maryland: Provided, That the

House and Senate Appropriations Committees will be notified of the

terms and conditions of the lease upon its execution.

SEC. 222. Of the funds appropriated in this Act for the National

Institutes of Health, $5,800,000 shall be transferred to the Office of

the Secretary, General Departmental Management to support the

newly established Office for Human Research Protections.

SEC. 223. Section 487E(a)(1) of the Public Health Service Act

is amended by striking ‘‘as employees of the National Institutes of

Health’’.

SEC. 224. Notwithstanding any other provision of law relating

to vacancies in offices for which appointments must be made by the

President, including any time limitation on serving in an acting capacity, the Acting Director of the National Institutes of Health as of

January 12, 2000, may serve in that position until a new Director

of the National Institutes of Health is confirmed by the Senate.

SEC. 225. The National Neuroscience Research Center to be constructed on the National Institutes of Health Bethesda campus is

hereby named the John Edward Porter Neuroscience Research Center.

This title may be cited as the ‘‘Department of Health and

Human Services Appropriations Act, 2001’’.

34

TITLE III—DEPARTMENT OF EDUCATION

EDUCATION REFORM

For carrying out activities authorized by title IV of the Goals

2000: Educate America Act as in effect prior to September 30, 2000,

and sections 3122, 3132, 3136, and 3141, parts B, C, and D of title

III, and section 10105 and part I of title X of the Elementary and

Secondary Education Act of 1965, $1,880,710,000, of which

$38,000,000 shall be for the Goals 2000: Educate America Act, and

of which $191,950,000 shall be for section 3122: Provided, That up

to one-half of 1 percent of the amount available under section 3132

shall be set aside for the outlying areas, to be distributed on the

basis of their relative need as determined by the Secretary in accordance with the purposes of the program: Provided further, That

if any State educational agency does not apply for a grant under

section 3132, that State’s allotment under section 3131 shall be reserved by the Secretary for grants to local educational agencies in

that State that apply directly to the Secretary according to the terms

and conditions published by the Secretary in the Federal Register:

Provided further, That with respect to all funds appropriated to

carry out section 10901 et seq. in this Act, the Secretary shall

strongly encourage applications for grants that are to be submitted

jointly by a local educational agency (or a consortium of local educational agencies) and a community-based organization that has experience in providing before- and after-school services and all applications submitted to the Secretary shall contain evidence that the

project contains elements that are designed to assist students in

meeting or exceeding state and local standards in core academic

subjects, as appropriate to the needs of participating children: Provided further, That $125,000,000, which shall become available on

July 1, 2001, and remain available through September 30, 2002,

shall be available to support activities under section 10105 of part

A of title X of the Elementary and Secondary Education Act of 1965,

of which up to 6 percent shall become available October 1, 2000,

and be available for evaluation, technical assistance, school networking, peer review of applications, and program outreach activities: Provided further, That funds made available to local educational agencies under this section shall be used only for activities

related to establishing smaller learning communities in high

schools: Provided further, That $46,328,000 of the funds available

to carry out section 3136 of the Elementary and Secondary Education Act of 1965, $8,768,000 of the funds available to carry out

part B of title III of that Act and $20,614,000 of the funds available

to carry out part I of title X of that Act shall be available for the

projects and in the amounts specified in the statement of the managers on the conference report accompanying this Act.

EDUCATION FOR THE DISADVANTAGED

For carrying out title I of the Elementary and Secondary Education Act of 1965, and section 418A of the Higher Education Act

of 1965, $9,532,621,000, of which $2,731,921,000 shall become

available on July 1, 2001, and shall remain available through September 30, 2002, and of which $6,758,300,000 shall become available on October 1, 2001 and shall remain available through SepVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00038 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.000 pfrm03 PsN: HR1033
35

tember 30, 2002, for academic year 2001–2002: Provided, That

$7,332,721,000 shall be available for basic grants under section

1124: Provided further, That $225,000,000 of these funds shall be

allocated among the States in the same proportion as funds are allocated among the States under section 1122, to carry out section

1116(c): Provided further, That 100 percent of these funds shall be

allocated by states to local educational agencies for the purposes of

carrying out section 1116(c): Provided further, That all local educational agencies receiving an allocation under the preceding proviso, and all other local educational agencies that are within a

State that receives funds under part A of title I of the Elementary

and Secondary Education Act of 1965 (other than a local educational agency within a State receiving a minimum grant under

section 1124(d) or 1124A(a)(1)(B) of such Act), shall provide all students enrolled in a school identified under section 1116(c) with the

option to transfer to another public school within the local educational agency, including a public charter school, that has not been

identified for school improvement under section 1116(c), unless such

option to transfer is prohibited by State law, or local law, which includes school board-approved local educational agency policy: Provided further, That if the local educational agency demonstrates to

the satisfaction of the State educational agency that the local educational agency lacks the capacity to provide all students with the

option to transfer to another public school, and after giving notice

to the parents of children affected that it is not possible, consistent

with State and local law, to accommodate the transfer request of

every student, the local educational agency shall permit as many

students as possible (who shall be selected by the local educational

agency on an equitable basis) to transfer to a public school that has

not been identified for school improvement under section 1116(c):

Provided further, That up to $3,500,000 of these funds shall be

available to the Secretary on October 1, 2000, to obtain updated

local educational agency level census poverty data from the Bureau

of the Census: Provided further, That $1,364,000,000 shall be available for concentration grants under section 1124A: Provided further,

That grant awards under sections 1124 and 1124A of title I of the

Elementary and Secondary Education Act of 1965 shall be not less

than the greater of 100 percent of the amount each State and local

educational agency received under this authority for fiscal year

2000 or the amount such State and local educational agency would

receive if $6,883,503,000 for Basic Grants and $1,222,397,000 for

Concentration Grants were allocated in accordance with section

1122(c)(3) of title I: Provided further, That notwithstanding any

other provision of law, grant awards under section 1124A of title I

of the Elementary and Secondary Education Act of 1965 shall be

made to those local educational agencies that received a Concentration Grant under the Department of Education Appropriations Act,

2000, but are not eligible to receive such a grant for fiscal year

2001: Provided further, That the Secretary shall not take into account the hold harmless provisions in this section in determining

State allocations under any other program administered by the Secretary in any fiscal year: Provided further, That $8,900,000 shall be

available for evaluations under section 1501 and not more than

$8,500,000 shall be reserved for section 1308, of which not more

36

than $3,000,000 shall be reserved for section 1308(d): Provided further, That $210,000,000 shall be available under section 1002(g)(2)

to demonstrate effective approaches to comprehensive school reform

to be allocated and expended in accordance with the instructions relating to this activity in the statement of the managers on the conference report accompanying Public Law 105–78 and in the statement of the managers on the conference report accompanying Public

Law 105–277: Provided further, That in carrying out this initiative,

the Secretary and the States shall support only approaches that

show the most promise of enabling children served by title I to meet

challenging State content standards and challenging State student

performance standards based on reliable research and effective

practices, and include an emphasis on basic academics and parental involvement.

IMPACT AID

For carrying out programs of financial assistance to federally

affected schools authorized by title VIII of the Elementary and Secondary Education Act of 1965, $993,302,000, of which $882,000,000

shall be for basic support payments under section 8003(b),

$50,000,000 shall be for payments for children with disabilities

under section 8003(d), $12,802,000 shall be for construction under

section 8007, $40,500,000 shall be for Federal property payments

under section 8002, and $8,000,000, to remain available until expended, shall be for facilities maintenance under section 8008: Provided, That $6,802,000 of the funds for section 8007 shall be available for the local educational agencies and in the amounts specified

in the statement of the managers on the conference report accompanying this Act: Provided further, That from the amount appropriated for section 8002, the Secretary shall treat as timely filed,

and shall process for payment, an application for a fiscal year 1999

payment from Academy School District 20, Colorado, under that

section if the Secretary has received that application not later than

30 days after the enactment of this Act: Provided further, That the

Secretary of Education shall consider the local educational agency

serving the Kadoka School District, 35–1, in South Dakota, eligible

for payments under section 8002 for fiscal year 2001 and each succeeding fiscal year, with respect to land in Washabaugh and Jackson Counties, South Dakota, that is owned by the Department of Defense and used as a bombing range: Provided further, That from the

amount appropriated for section 8002, the Secretary shall first increase the payment of any local educational agency that was denied

funding or had its payment reduced under that section for fiscal

year 1998 due to section 8002(b)(1)(C) to the amount that would

have been made without the limitation of that section: Provided further, That from the amount appropriated for section 8002, $500,000

shall be for subsection 8002(j).

SCHOOL IMPROVEMENT PROGRAMS

For carrying out school improvement activities authorized by titles II, IV, V–A and B, VI, IX, X, and XIII of the Elementary and

Secondary Education Act of 1965 (‘‘ESEA’’); the McKinney-Vento

Homeless Assistance Act; and the Civil Rights Act of 1964 and part

B of title VIII of the Higher Education Amendments of 1998;

37

$4,872,084,000, of which $2,403,750,000 shall become available on

July 1, 2001, and remain available through September 30, 2002,

and of which $1,765,000,000 shall become available on October 1,

2001 and shall remain available through September 30, 2002 for

academic year 2001–2002: Provided, That $485,000,000 shall be

available for Eisenhower professional development State grants

under part B of title II of the Elementary and Secondary Education

Act of 1965: Provided further, That each local educational agency

shall use funds in excess of the allocation it received under such

part for the preceding fiscal year to improve teacher quality by reducing the percentage of teachers who do not have State certification

or are certified through emergency or provisional means; are teaching out of field in some or all of the subject areas and grade levels

in which they teach; or who lack sufficient content knowledge to

teach effectively in the areas they teach to obtain that knowledge:

Provided further, That the local educational agency may also use

such excess funds for: activities authorized under section 2210 of the

Elementary and Secondary Education Act of 1965; mentoring programs for new teachers; providing opportunities for teachers to attend multi-week institutes, such as those provided in the summer

months, that provide intensive professional development in partnership with local educational agencies; and carrying out initiatives to

promote the retention of highly qualified teachers who have a record

of success in helping low-achieving students improve their academic

success: Provided further, That each State educational agency may

use such excess funds to carry out activities under section 2207 of

the Elementary and Secondary Education Act of 1965: Provided further, That each State agency for higher education may use such excess funds to carry out activities under section 2211 of the Elementary and Secondary Education Act of 1965: Provided further, That

both State educational agencies and State agencies for higher education may also use such excess funds for multi-week institutes,

such as those provided in the summer months, that provide intensive professional development in partnership with local educational

agencies; and grants to partnerships of such entities as local educational agencies, institutions of higher education, and private business, to recruit, and prepare, and provide professional development

to, and help retain, school principals and superintendents, especially for such individuals who serve, or are preparing to serve, in

high-poverty, low-performing schools and local educational agencies: Provided further, That such activities may be undertaken in

consortium with other States: Provided further, That of the funds

appropriated for part B of title II of the Elementary and Secondary

Education Act of 1965, $45,000,000 shall be available to States and

allocated in accordance with section 2202(b) of that Act (except that

the requirements of section 2203 shall not apply): Provided further,

That notwithstanding any other provision of law, each State shall

use the amount made available under the preceding proviso to support efforts to meet the requirements for State eligibility for the EdFlex 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

38

in the preceding proviso, $3,000,000 shall be made available to the

Secretary for the Troops-to-Teachers Program for transfer to the Defense Activity for Non-Traditional Education Support of the Department of Defense: Provided further, That the funds transferred under

the preceding proviso shall be used by the Secretary of Defense to

administer the Troops-to-Teachers Program, including the selection

of participants in the Program under the Troops-to-Teachers Program Act of 1999 (title XVII of Public Law 106–65; 20 U.S.C. 9301

et seq.): Provided further, That for purposes of sections 1702(b) and

(c) of the Troops-to-Teachers Program Act of 1999, the Secretary of

Education shall be the administering Secretary and may, at the

Secretary’s discretion, carry out the activities under section 1702(c)

of that Act and retain a portion of the funds made available for the

Troops-to-Teachers Program to carry out section 1702(b) and (c) of

that Act: Provided further, That of the amount made available

under this heading for national activities under section 2102 of the

Elementary and Secondary Education Act of 1965, the Secretary is

authorized to use a portion of such funds to carry out activities to

improve the knowledge and skills of early childhood educators and

caregivers who work in urban or rural communities with high concentrations of young children living in poverty: Provided further,

That of the amount appropriated, $3,208,000,000 shall be for title

VI of the Elementary and Secondary Education Act of 1965 and to

carry out activities under part B of the Individuals with Disabilities

Education Act (20 U.S.C. 1411 et seq.): Provided further, That of

the amount made available for title VI, $1,623,000,000 shall be

available, notwithstanding any other provision of law, in accordance with section 306 of this Act in order to reduce class size, particularly in the early grades, using highly qualified teachers to improve educational achievement for regular and special needs children: Provided further, That of the amount made available for title

VI, $1,200,000,000 shall be available, notwithstanding any other

provision of law, for grants for school repair and renovation, activities under part B of the Individuals with Disabilities Education Act

(20 U.S.C. 1411 et seq.), and technology activities, in accordance

with section 321 of this Act: Provided further, That funds made

available under this heading to carry out section 6301(b) of the Elementary and Secondary Education Act of 1965 shall be available

for education reform projects that provide same gender schools and

classrooms, consistent with applicable law: Provided further, That

of the amount made available to carry out activities authorized

under part C of title IX of the Elementary and Secondary Education

Act of 1965, $1,000,000 shall be for the Alaska Humanities Forum

for operation of the Rose student exchange program and $1,000,000

shall be for the Alaska Native Heritage Center to support its program of cultural education activities: Provided further, That of the

amount made available for subpart 2 of part A of title IV of the Elementary and Secondary Education Act of 1965, $10,000,000, to remain available until expended, shall be for Project School Emergency Response to Violence to provide education-related services to

local educational agencies in which the learning environment has

been disrupted due to a violent or traumatic crisis.

39

READING EXCELLENCE

For necessary expenses to carry out the Reading Excellence Act, $91,000,000, which shall become available on July 1, 2001 and

shall remain available through September 30, 2002 and

$195,000,000 which shall become available on October 1, 2001 and

remain available through September 30, 2002.

INDIAN EDUCATION

For expenses necessary to carry out, to the extent not otherwise

provided, title IX, part A of the Elementary and Secondary Education Act of 1965, as amended, $115,500,000.

BILINGUAL AND IMMIGRANT EDUCATION

For carrying out, to the extent not otherwise provided, bilingual,

foreign language and immigrant education activities authorized by

parts A and C and section 7203 of title VII of the Elementary and

Secondary Education Act of 1965, $460,000,000: Provided, That

State educational agencies may use all, or any part of, their part

C allocation for competitive grants to local educational agencies.

SPECIAL EDUCATION

For carrying out the Individuals with Disabilities Education Act, $7,439,948,000, of which $2,090,452,000 shall become available

for obligation on July 1, 2001, and shall remain available through

September 30, 2002, and of which $5,072,000,000 shall become

available on October 1, 2001 and shall remain available through

September 30, 2002, for academic year 2001–2002: Provided, That

$9,500,000 shall be for Recording for the Blind and Dyslexic to support the development, production, and circulation of recorded educational materials: Provided further, That $1,500,000 shall be for

the recipient of funds provided by Public Law 105–78 under section

687(b)(2)(G) of the Act to provide information on diagnosis, intervention, and teaching strategies for children with disabilities: Provided further, That $7,353,000 of the funds for section 672 of the

Act shall be available for the projects and in the amounts specified

in the statement of the managers on the conference report accompanying this Act.

REHABILITATION SERVICES AND DISABILITY RESEARCH

For carrying out, to the extent not otherwise provided, the Rehabilitation Act of 1973, the Assistive Technology Act of 1998, and the

Helen Keller National Center Act, $2,805,339,000: Provided, That

the funds provided for title I of the Assistive Technology Act of 1998

(‘‘the AT Act’’) shall be allocated notwithstanding section 105(b)(1)

of the AT Act: Provided further, That each State shall be provided

$50,000 for activities under section 102 of the AT Act: Provided further, That $15,000,000 shall be used to support grants for up to

three years to States under title III of the AT Act, of which the Federal share shall not exceed 75 percent in the first year, 50 percent

in the second year, and 25 percent in the third year, and that the

requirements in section 301(c)(2) and section 302 of that Act shall

not apply to such grants: Provided further, That $4,600,000 of the

funds for section 303 of the Rehabilitation Act of 1973 shall be

40

available for the projects and in the amounts specified in the statement of the managers on the conference report accompanying this

Act: Provided further, That $400,000 of the funds for title II of the

Rehabilitation Act of 1973 shall be for the Cerebral Palsy Research

Foundation in Wichita, Kansas for the establishment of a Rehabilitation Research and Training Center to study and recommend incentives for employers to hire persons with significant disabilities.

SPECIAL INSTITUTIONS FOR PERSONS WITH DISABILITIES

AMERICAN PRINTING HOUSE FOR THE BLIND

For carrying out the Act of March 3, 1879, as amended (20

U.S.C. 101 et seq.), $12,000,000.

NATIONAL TECHNICAL INSTITUTE FOR THE DEAF

For the National Technical Institute for the Deaf under titles I

and II of the Education of the Deaf Act of 1986 (20 U.S.C. 4301 et

seq.), $53,376,000, of which $5,376,000 shall be for construction and

shall remain available until expended: Provided, That from the

total amount available, the Institute may at its discretion use funds

for the endowment program as authorized under section 207.

GALLAUDET UNIVERSITY

For the Kendall Demonstration Elementary School, the Model

Secondary School for the Deaf, and the partial support of Gallaudet

University under titles I and II of the Education of the Deaf Act of

1986 (20 U.S.C. 4301 et seq.), $89,400,000: Provided, That from the

total amount available, the University may at its discretion use

funds for the endowment program as authorized under section 207.

VOCATIONAL AND ADULT EDUCATION

For carrying out, to the extent not otherwise provided, the Carl

D. Perkins Vocational and Technical Education Act, the Adult Education and Family Literacy Act, and title VIII–D of the Higher Education Act of 1965, as amended, and Public Law 102–73,

$1,825,600,000, of which $1,000,000 shall remain available until

expended, and of which $1,028,000,000 shall become available on

July 1, 2001 and shall remain available through September 30,

2002 and of which $791,000,000 shall become available on October

1, 2001 and shall remain available through September 30, 2002:

Provided, That of the amounts made available for the Carl D. Perkins Vocational and Technical Education Act, $5,600,000 shall be

for tribally controlled postsecondary vocational and technical institutions under section 117: Provided further, That $9,000,000 shall

be for carrying out section 118 of such Act: Provided further, That

of the amounts made available for the Carl D. Perkins Vocational

and Technical Education Act, $5,000,000 shall be for demonstration

activities authorized by section 207: Provided further, That of the

amount provided for Adult Education State Grants, $70,000,000

shall be made available for integrated English literacy and civics

education services to immigrants and other limited English proficient populations: Provided further, That of the amount reserved

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standing section 211 of the Adult Education and Family Literacy

Act, 65 percent shall be allocated to States based on a State’s absolute need as determined by calculating each State’s share of a 10-

year average of the Immigration and Naturalization Service data

for immigrants admitted for legal permanent residence for the 10

most recent years, and 35 percent allocated to States that experienced growth as measured by the average of the 3 most recent years

for which Immigration and Naturalization Service data for immigrants admitted for legal permanent residence are available, except

that no State shall be allocated an amount less than $60,000: Provided further, That of the amounts made available for the Adult

Education and Family Literacy Act, $14,000,000 shall be for national leadership activities under section 243 and $6,500,000 shall

be for the National Institute for Literacy under section 242: Provided further, That $22,000,000 shall be for Youth Offender Grants,

of which $5,000,000 shall be used in accordance with section 601

of Public Law 102–73 as that section was in effect prior to the enactment of Public Law 105–220.

STUDENT FINANCIAL ASSISTANCE

For carrying out subparts 1, 3 and 4 of part A, section 428K,

part C and part E of title IV of the Higher Education Act of 1965,

as amended, $10,674,000,000, which shall remain available

through September 30, 2002.

The maximum Pell Grant for which a student shall be eligible

during award year 2001–2002 shall be $3,750: Provided, That notwithstanding section 401(g) of the Act, if the Secretary determines,

prior to publication of the payment schedule for such award year,

that the amount included within this appropriation for Pell Grant

awards in such award year, and any funds available from the fiscal

year 2000 appropriation for Pell Grant awards, are insufficient to

satisfy fully all such awards for which students are eligible, as calculated under section 401(b) of the Act, the amount paid for each

such award shall be reduced by either a fixed or variable percentage, or by a fixed dollar amount, as determined in accordance with

a schedule of reductions established by the Secretary for this purpose.

FEDERAL FAMILY EDUCATION LOAN PROGRAM ACCOUNT

For Federal administrative expenses to carry out guaranteed

student loans authorized by title IV, part B, of the Higher Education Act of 1965, as amended, $48,000,000.

HIGHER EDUCATION

For carrying out, to the extent not otherwise provided, section

121 and titles II, III, IV, V, VI, and VII of the Higher Education

Act of 1965, as amended, section 1543 of the Higher Education

Amendments of 1992 and title VIII of the Higher Education Amendments of 1998, and the Mutual Educational and Cultural Exchange

Act of 1961, $1,911,710,000, of which $10,000,000 for interest subsidies authorized by section 121 of the Higher Education Act of

1965, shall remain available until expended: Provided, That

$10,000,000, to remain available through September 30, 2002, shall

42

be available to fund fellowships for academic year 2002–2003 under

part A, subpart 1 of title VII of said Act, under the terms and conditions of part A, subpart 1: Provided further, That $3,000,000 is for

data collection and evaluation activities for programs under the

Higher Education Act of 1965, including such activities needed to

comply with the Government Performance and Results Act of 1993:

Provided further, That $15,000,000 shall be available for tribally

controlled colleges and universities under section 316 of the Higher

Education Act of 1965, of which $5,000,000 shall be used for construction and renovation: Provided further, That $250,000 shall be

for the Web-Based Education Commission to continue activities authorized under part J of title VIII of the Higher Education Amendments of 1998: Provided further, That $115,487,000 of the funds for

part B of title VII of the Higher Education Act of 1965 shall be

available for the projects and in the amounts specified in the statement of the managers on the conference report accompanying this

Act.

HOWARD UNIVERSITY

For partial support of Howard University (20 U.S.C. 121 et

seq.), $232,474,000, of which not less than $3,600,000 shall be for

a matching endowment grant pursuant to the Howard University

Endowment Act (Public Law 98–480) and shall remain available

until expended.

COLLEGE HOUSING AND ACADEMIC FACILITIES LOANS PROGRAM

For Federal administrative expenses authorized under section

121 of the Higher Education Act of 1965, $762,000 to carry out activities related to existing facility loans entered into under the Higher Education Act of 1965.

HISTORICALLY BLACK COLLEGE AND UNIVERSITY CAPITAL FINANCING

PROGRAM ACCOUNT

The total amount of bonds insured pursuant to section 344 of

title III, part D of the Higher Education Act of 1965 shall not exceed

$357,000,000, and the cost, as defined in section 502 of the Congressional Budget Act of 1974, of such bonds shall not exceed zero.

For administrative expenses to carry out the Historically Black

College and University Capital Financing Program entered into

pursuant to title III, part D of the Higher Education Act of 1965,

as amended, $208,000.

EDUCATION RESEARCH, STATISTICS, AND IMPROVEMENT

For carrying out activities authorized by the Educational Research, Development, Dissemination, and Improvement Act of 1994,

including part E; the National Education Statistics Act of 1994, including sections 411 and 412; section 2102 of title II, parts A, B,

K and L and sections 10102 and 10601 of title X, and part C of title

XIII of the Elementary and Secondary Education Act of 1965, as

amended, and title VI of Public Law 103–227, $732,721,000: Provided, That of the funds appropriated for part A of title X of the Elementary and Secondary Education Act of 1965, as amended,

$5,000,000 shall be made available for a high school reform proVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00046 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.000 pfrm03 PsN: HR1033
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gram of grants to State educational agencies to improve academic

performance and provide technical skills training: Provided further,

That of the funds appropriated for part A of title X of the Elementary and Secondary Education Act of 1965, as amended, $5,000,000

shall be made available to carry out part L of title X of the Act: Provided further, That of the amount available for part A of title X of

the Elementary and Secondary Education Act of 1965, as amended,

$5,000,000 shall be available for grants to State and local educational agencies, in collaboration with other agencies and organizations, for school dropout prevention programs designed to address

the needs of populations or communities with the highest dropout

rates: Provided further, That of the amount made available for part

A of title X of the Elementary and Secondary Education Act of 1965,

as amended, $50,000,000 shall be made available to enable the Secretary of Education to award grants to develop, implement, and

strengthen programs to teach American history (not social studies)

as a separate subject within school curricula: Provided further,

That $53,000,000 of the amount available for the national education research institutes shall be allocated notwithstanding section

912(m)(1)(B–F) and subparagraphs (B) and (C) of section 931(c)(2)

of Public Law 103–227 and $20,000,000 of that $53,000,000 shall

be made available for the Interagency Education Research Initiative: Provided further, That of the funds appropriated for part A of

title X of the Elementary and Secondary Education Act, as amended, $50,000,000 shall be available to demonstrate effective approaches to comprehensive school reform, to be allocated and expended in accordance with the instructions relating to this activity

in the statement of managers on the conference report accompanying

Public Law 105–78 and in the statement of the managers on the

conference report accompanying Public Law 105–277: Provided further, That the funds made available for comprehensive school reform shall become available on July 1, 2001, and remain available

through September 30, 2002, and in carrying out this initiative, the

Secretary and the States shall support only approaches that show

the most promise of enabling children to meet challenging State

content standards and challenging State student performance

standards based on reliable research and effective practices, and include an emphasis on basic academics and parental involvement:

Provided further, That $139,624,000 of the funds for section 10101

of the Elementary and Secondary Education Act of 1965 shall be

available for the projects and in the amounts specified in the statement of the managers on the conference report accompanying this

Act: Provided further, That of the funds appropriated under section

10601 of title X of the Elementary and Secondary Education Act of

1965, as amended, $2,000,000 shall be used to conduct a violence

prevention demonstration program: Provided further, That of the

funds available for section 10601 of title X of the Elementary and

Secondary Education Act of 1965, as amended, $150,000 shall be

awarded to the Center for Educational Technologies to complete production and distribution of an effective CD–ROM product that

would complement the ‘‘We the People: The Citizen and the Constitution’’ curriculum: Provided further, That, of the funds for title

VI of Public Law 103–227 and notwithstanding the provisions of

section 601(c)(1)(C) of that Act, $1,200,000 shall be available to the

44

Center for Civic Education to conduct a civic education program

with Northern Ireland and the Republic of Ireland and, consistent

with the civics and Government activities authorized in section

601(c)(3) of Public Law 103–227, to provide civic education assistance to democracies in developing countries. The term ‘‘developing

countries’’ shall have the same meaning as the term ‘‘developing

country’’ in the Education for the Deaf Act.

DEPARTMENTAL MANAGEMENT

PROGRAM ADMINISTRATION

For carrying out, to the extent not otherwise provided, the Department of Education Organization Act, including rental of conference rooms in the District of Columbia and hire of two passenger

motor vehicles, $413,184,000.

OFFICE FOR CIVIL RIGHTS

For expenses necessary for the Office for Civil Rights, as authorized by section 203 of the Department of Education Organization

Act, $76,000,000.

OFFICE OF THE INSPECTOR GENERAL

For expenses necessary for the Office of the Inspector General,

as authorized by section 212 of the Department of Education Organization Act, $36,500,000.

GENERAL PROVISIONS

SEC. 301. No funds appropriated in this Act may be used for

the transportation of students or teachers (or for the purchase of

equipment for such transportation) in order to overcome racial imbalance in any school or school system, or for the transportation of

students or teachers (or for the purchase of equipment for such

transportation) in order to carry out a plan of racial desegregation

of any school or school system.

SEC. 302. None of the funds contained in this Act shall be used

to require, directly or indirectly, the transportation of any student

to a school other than the school which is nearest the student’s

home, except for a student requiring special education, to the school

offering such special education, in order to comply with title VI of

the Civil Rights Act of 1964. For the purpose of this section an indirect requirement of transportation of students includes the transportation of students to carry out a plan involving the reorganization

of the grade structure of schools, the pairing of schools, or the clustering of schools, or any combination of grade restructuring, pairing

or clustering. The prohibition described in this section does not include the establishment of magnet schools.

SEC. 303. No funds appropriated under this Act may be used

to prevent the implementation of programs of voluntary prayer and

meditation in the public schools.

(TRANSFER OF FUNDS)

SEC. 304. Not to exceed 1 percent of any discretionary funds

(pursuant to the Balanced Budget and Emergency Deficit Control

45

Act of 1985, as amended) which are appropriated for the Department of Education in this Act may be transferred between appropriations, but no such appropriation shall be increased by more

than 3 percent by any such transfer: Provided, That the Appropriations Committees of both Houses of Congress are notified at least 15

days in advance of any transfer.

SEC. 305. The Comptroller General of the United States shall

evaluate the extent to which funds made available under part A of

title I of the Elementary and Secondary Education Act of 1965 are

allocated to schools and local educational agencies with the greatest

concentrations of school-age children from low-income families, the

extent to which allocations of such funds adjust to shifts in concentrations of pupils from low-income families in different regions,

States, and substate areas, the extent to which the allocation of such

funds encourages the targeting of State funds to areas with higher

concentrations of children from low-income families, and the implications of current distribution methods for such funds, shall make

formula and other policy recommendations to improve the targeting

of such funds to more effectively serve low-income children in both

rural and urban areas, and shall prepare interim and final reports

based on the results of the study, to be submitted to Congress not

later than February 1, 2001, and April 1, 2001.

SEC. 306. (a) From the amount appropriated for title VI of the

Elementary and Secondary Education Act of 1965 in accordance

with this section, the Secretary of Education— (1) shall make available a total of $6,000,000 to the Secretary of the Interior (on behalf of the Bureau of Indian Affairs)

and the outlying areas for activities under this section; and

(2) shall allocate the remainder by providing each State the

same percentage of that remainder as it received of the funds

allocated to States under section 307(a)(2) of the Department of

Education Appropriations Act, 1999.

(b)(1) Each State that receives funds under this section shall

distribute 100 percent of such funds to local educational agencies,

of which—

(A) 80 percent of such amount shall be allocated to such

local educational agencies in proportion to the number of children, aged 5 to 17, who reside in the school district served by

such local educational agency from families with incomes below

the poverty line (as defined by the Office of Management and

Budget and revised annually in accordance with section 673(2)

of the Community Services Block Grant Act (42 U.S.C. 9902(2)))

applicable to a family of the size involved for the most recent

fiscal year for which satisfactory data are available compared

to the number of such individuals who reside in the school districts served by all the local educational agencies in the State

for that fiscal year; and

(B) 20 percent of such amount shall be allocated to such

local educational agencies in accordance with the relative enrollments of children, aged 5 to 17, in public and private nonprofit elementary and secondary schools within the boundaries

of such agencies.

(2) Notwithstanding paragraph (1), if the award to a local educational agency under this section is less than the starting salary

46

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 fullor part-time teacher hired to reduce class size, which may be in

combination with other Federal, State, or local funds; or (B) pay for

activities described in subsection (c)(2)(A)(iii) which may be related

to teaching in smaller classes.

(c)(1) The basic purpose and intent of this section is to reduce

class size with fully qualified teachers. Each local educational agency that receives funds under this section shall use such funds to

carry out effective approaches to reducing class size with fully qualified teachers who are certified within the State, including teachers

certified through State or local alternative routes, and who demonstrate competency in the areas in which they teach, to improve

educational achievement for both regular and special needs children, with particular consideration given to reducing class size in

the early elementary grades for which some research has shown

class size reduction is most effective.

(2)(A) Each such local educational agency may use funds under

this section for—

(i) recruiting (including through the use of signing bonuses,

and other financial incentives), hiring, and training fully qualified regular and special education teachers (which may include

hiring special education teachers to team-teach with regular

teachers in classrooms that contain both children with disabilities and non-disabled children) and teachers of special-needs

children who are certified within the State, including teachers

certified through State or local alternative routes, have a baccalaureate degree and demonstrate the general knowledge, teaching skills, and subject matter knowledge required to teach in

their content areas;

(ii) testing new teachers for academic content knowledge

and to meet State certification requirements that are consistent

with title II of the Higher Education Act of 1965; and

(iii) providing professional development (which may include such activities as those described in section 2210 of the

Elementary and Secondary Education Act of 1965, opportunities for teachers to attend multi-week institutes, such as those

made available during the summer months that provide intensive professional development in partnership with local educational agencies and initiatives that promote retention and

mentoring), to teachers, including special education teachers

and teachers of special-needs children, in order to meet the goal

of ensuring that all instructional staff have the subject matter

knowledge, teaching knowledge, and teaching skills necessary to

teach effectively in the content area or areas in which they provide instruction, consistent with title II of the Higher Education

Act of 1965.

(B)(i) Except as provided under clause (ii), a local educational

agency may use not more than a total of 25 percent of the award

47

received under this section for activities described in clauses (ii) and

(iii) of subparagraph (A).

(ii) A local educational agency in which 10 percent or more

of teachers in elementary schools, as defined by section

14101(14) of the Elementary and Secondary Education Act of

1965, have not met applicable State and local certification requirements (including certification through State or local alternative routes), or if such requirements have been waived, may

use more than 25 percent of the funds it receives under this section for activities described in subparagraph (A)(iii) to help

teachers who are not certified by the State become certified, including through State or local alternative routes, or to help

teachers affected by class size reduction who lack sufficient content knowledge to teach effectively in the areas they teach to obtain that knowledge, if the local educational agency notifies the

State educational agency of the percentage of the funds that it

will use for the purpose described in this clause.

(C) A local educational agency that has already reduced class

size in the early grades to 18 or less children (or has already reduced class size to a State or local class size reduction goal that was

in effect on the day before the enactment of the Department of Education Appropriations Act, 2000, if that State or local educational

agency goal is 20 or fewer children) may use funds received under

this section—

(i) to make further class size reductions in grades kindergarten through 3;

(ii) to reduce class size in other grades; or

(iii) to carry out activities to improve teacher quality including professional development.

(D) If a local educational agency has already reduced class size

in the early grades to 18 or fewer children and intends to use funds

provided under this section to carry out professional development

activities, including activities to improve teacher quality, then the

State shall make the award under subsection (b) to the local educational agency.

(3) Each such agency shall use funds under this section only to

supplement, and not to supplant, State and local funds that, in the

absence of such funds, would otherwise be spent for activities under

this section.

(4) No funds made available under this section may be used to

increase the salaries or provide benefits, other than participation in

professional development and enrichment programs, to teachers who

are not hired under this section. Funds under this section may be

used to pay the salary of teachers hired under section 307 of the Department of Education Appropriations Act, 1999, or under section

310 of the Department of Education Appropriations Act, 2000.

(d)(1) Each State receiving funds under this section shall report

on activities in the State under this section, consistent with section

6202(a)(2) of the Elementary and Secondary Education Act of 1965.

(2) Each State and local educational agency receiving funds

under this section shall publicly report to parents on its progress in

reducing class size, increasing the percentage of classes in core academic areas taught by fully qualified teachers who are certified

within the State and demonstrate competency in the content areas

48

in which they teach, and on the impact that hiring additional highly qualified teachers and reducing class size, has had, if any, on increasing student academic achievement.

(3) Each school receiving funds under this section shall provide

to parents, upon request, the professional qualifications of their

child’s teacher.

(e) If a local educational agency uses funds made available

under this section for professional development activities, the agency

shall ensure for the equitable participation of private nonprofit elementary and secondary schools in such activities. Section 6402 of

the Elementary and Secondary Education Act of 1965 shall not

apply to other activities under this section.

(f) A local educational agency that receives funds under this

section may use not more than 3 percent of such funds for local administrative costs.

(g) Each local educational agency that desires to receive funds

under this section shall include in the application required under

section 6303 of the Elementary and Secondary Education Act of

1965 a description of the agency’s program to reduce class size by

hiring additional highly qualified teachers.

(h) No funds under this section may be used to pay the salary

of any teacher hired with funds under section 307 of the Department

of Education Appropriations Act, 1999, unless, by the start of the

2001–2002 school year, the teacher is certified within the State

(which may include certification through State or local alternative

routes) and demonstrates competency in the subject areas in which

he or she teaches.

(i) Not later than 30 days after the date of the enactment of this

Act, the Secretary shall provide specific notification to each local

educational agency eligible to receive funds under this part regarding the flexibility provided under subsection (c)(2)(B)(ii) and the

ability to use such funds to carry out activities described in subsection (c)(2)(A)(iii).

SEC. 307. Section 412 of the National Education Statistics Act

of 1994 (Public Law 103–382) is amended—

(1) in subsection 412(c)(1), after ‘‘period of’’ and before

‘‘years,’’, by striking ‘‘3’’ and inserting ‘‘4’’; and

(2) after ‘‘expiration of such term.’’, by adding the following

new subsection:

‘‘(4) CONFORMING PROVISION.—Members of the Board previously granted 3 year terms, whose terms are in effect on the

date of enactment of the Department of Education Appropriations Act, 2001, shall have their terms extended by one year.’’.

SEC. 308. (a) Section 435(a)(2) of the Higher Education Act of

1965 (20 U.S.C. 1085(a)(2)) is amended by adding at the end thereof

the following new subparagraph:

‘‘(D) Notwithstanding the first sentence of subparagraph (A),

the Secretary shall restore the eligibility to participate in a program

under subpart 1 of part A, part B, or part D of an institution that

did not appeal its loss of eligibility within 30 days of receiving notification if the Secretary determines, on a case-by-case basis, that the

institution’s failure to appeal was substantially justified under the

circumstances, and that—

49

‘‘(i) the institution made a timely request that the appropriate guaranty agency correct errors in the draft data used to

calculate the institution’s cohort default rate;

‘‘(ii) the guaranty agency did not correct the erroneous data

in a timely fashion; and

‘‘(iii) the institution would have been eligible if the erroneous data had been corrected by the guaranty agency.’’.

(b) The amendment made by subsection (a) of this section shall

be effective for cohort default rate calculations for fiscal years 1997

and 1998.

SEC. 309. Section 439(r)(2) of the Higher Education Act of 1965

(20 U.S.C. 1087–2(r)(2)) is amended—

(1) in clause (A)(i), by striking ‘‘auditors and examiners’’

and inserting ‘‘and fix the compensation of such auditors and

examiners as may be necessary’’; and

(2) by inserting at the end of subparagraph (E) the following new subparagraph:

‘‘(F) COMPENSATION OF AUDITORS AND EXAMINERS.— ‘‘(i) RATES OF PAY.—Rates of basic pay for all auditors and examiners appointed pursuant to subparagraph (A) may be set and adjusted by the Secretary of

the Treasury without regard to the provisions of chapter 51 or subchapter III of chapter 53 of title 5, United

States Code.

‘‘(ii) COMPARABILITY.— ‘‘(I) IN GENERAL.—Subject to section 5373 of

title 5, United States Code, the Secretary of the

Treasury may provide additional compensation

and benefits to auditors and examiners appointed

pursuant to subparagraph (A) if the same type of

compensation or benefits are then being provided

by any agency referred to in section 1206 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1833b) or, if not

then being provided, could be provided by such an

agency under applicable provisions of law, rule, or

regulation.

‘‘(II) CONSULTATION.—In setting and adjusting

the total amount of compensation and benefits for

auditors and examiners appointed pursuant to

subparagraph (A), the Secretary of the Treasury

shall consult with, and seek to maintain comparability with, the agencies referred to in section

1206 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C.

1833b).’’.

SEC. 310. Section 117(i) of the Carl D. Perkins Vocational and

Technical Education Act of 1998 (20 U.S.C. 2327(i)) is amended by

inserting ‘‘such sums as may be necessary for’’ before ‘‘each of the

4 succeeding fiscal years.’’.

SEC. 311. Section 432(m)(1) of the Higher Education Act of

1965 (20 U.S.C. 1082(m)(1)) is amended—

(1) by striking clause (iv) of subparagraph (D); and

(2) by adding at the end the following new subparagraph:

50

‘‘(E) PERFECTION OF SECURITY INTERESTS IN STUDENT

LOANS.—‘‘(i) IN GENERAL.—Notwithstanding the provisions

of any State law to the contrary, including the Uniform

Commercial Code as in effect in any State, a security

interest in loans made under this part, on behalf of

any eligible lender (as defined in section 435(d)) shall

attach, be perfected, and be assigned priority in the

manner provided by the applicable State’s law for perfection of security interests in accounts, as such law

may be amended from time to time (including applicable transition provisions). If any such State’s law provides for a statutory lien to be created in such loans,

such statutory lien may be created by the entity or entities governed by such State law in accordance with the

applicable statutory provisions that created such a

statutory lien.

‘‘(ii) COLLATERAL DESCRIPTION.—In addition to

any other method for describing collateral in a legally

sufficient manner permitted under the laws of the

State, the description of collateral in any financing

statement filed pursuant to this subparagraph shall be

deemed legally sufficient if it lists such loans, or refers

to records (identifying such loans) retained by the secured party or any designee of the secured party identified in such financing statement, including the debtor

or any loan servicer.

‘‘(iii) SALES.—Notwithstanding clauses (i) and (ii)

and any provisions of any State law to the contrary,

other than any such State’s law providing for creation

of a statutory lien, an outright sale of loans made

under this part shall be effective and perfected automatically upon attachment as defined in the Uniform

Commercial Code of such State.’’.

SEC. 312. Section 435(a)(5) of the Higher Education Act of 1965

(20 U.S.C. 1085(a)(5)) is amended—

(1) in subparagraph (A)(i), by striking ‘‘July 1, 2002,’’ and

inserting ‘‘July 1, 2004,’’;

(2) in subparagraph (B), by striking ‘‘1999, 2000, and

2001’’ and inserting ‘‘1999 through 2003’’.

SEC. 313. From the amounts made available for the ‘‘Fund for

the Improvement of Education’’ under the heading ‘‘Education Research, Statistics, and Improvement’’, $10,000,000, to remain available until expended, shall be available to the Secretary of Education

to be transferred to the Secretary of the Interior for an award to the

National Constitution Center for construction activities authorized

under Public Law 100–433.

SEC. 314. Section 4116(b)(4) of the Elementary and Secondary

Education Act of 1965 is amended by striking subparagraph (D)

and inserting in lieu thereof: ‘‘(D) the development and implementation of character education and training programs that reflect the

values of parents, teachers, and local communities, and incorporate

elements of good character, including honesty, citizenship, courage,

justice, respect, personal responsibility, and trustworthiness; and’’.

51

SEC. 315. The Secretary of Education shall review the nursing

program operated by Graceland University in Lamoni, Iowa, and

may exercise the waiver authority provided in section 102(a)(3)(B)

of the Higher Education Act of 1965, without regard to the provisions of 34 CFR 600.7(b)(3)(ii), if the Secretary determines that such

a waiver is appropriate.

SEC. 316. Section 415 of the Higher Education Act of 1965 is

amended—

(1) in section 415A(a)(2), by striking ‘‘section 415F’’ and inserting ‘‘section 415E’’;

(2) in section 415E, by striking 415E(c) and inserting in

lieu thereof the following:

‘‘(c) AUTHORIZED ACTIVITIES.—Each State receiving a grant

under this section may use the grant funds for—

‘‘(1) making awards that—

‘‘(A) supplement grants received under section

415C(b)(2) by eligible students who demonstrate financial

need; or

‘‘(B) provide grants under section 415C(b)(2) to additional eligible students who demonstrate financial need;

‘‘(2) providing scholarships for eligible students—

‘‘(A) who demonstrate financial need; and

‘‘(B) who—

‘‘(i) desire to enter a program of study leading to

a career in—

‘‘(I) information technology;

‘‘(II) mathematics, computer science, or engineering;

‘‘(III) teaching; or

‘‘(IV) another field determined by the State to

be critical to the State’s workforce needs; or

‘‘(ii) demonstrate merit or academic achievement;

and

‘‘(3) making awards that—

‘‘(A) supplement community service work-study awards

received under section 415C(b)(2) by eligible students who

demonstrate financial need; or

‘‘(B) provide community service work-study awards

under section 415C(b)(2) to additional eligible students who

demonstrate financial need.’’.

(3) in section 415E, adding at the end the following new

subsections:

‘‘(f) SPECIAL RULE.—Notwithstanding subsection (d), for purposes of determining a State’s share of the cost of the authorized activities described in subsection (c), the State shall consider only

those expenditures from non-Federal sources that exceed its total expenditures for need-based grants, scholarships, and work-study assistance for fiscal year 1999 (including any such assistance provided

under this subpart).

‘‘(g) USE OF FUNDS FOR ADMINISTRATIVE COSTS PROHIBITED.—

A State receiving a grant under this section shall not use any of the

grant funds to pay administrative costs associated with any of the

authorized activities described in subsection (c).’’.

52

SEC. 317. (a) Section 402D of the Higher Education Act of 1965

(20 U.S.C. 1070a–14) is amended—

(1) by redesignating subsection (c) as subsection (d); and

(2) by inserting after subsection (b) the following new subsection:

‘‘(c) SPECIAL RULE.— ‘‘(1) USE FOR STUDENT AID.—A recipient of a grant that undertakes any of the permissible services identified in subsection

(b) may, in addition, use such funds to provide grant aid to students. A grant provided under this paragraph shall not exceed

the maximum appropriated Pell Grant or, be less than the minimum appropriated Pell Grant, for the current academic year.

In making grants to students under this subsection, an institution shall ensure that adequate consultation takes place between the student support service program office and the institution’s financial aid office.

‘‘(2) ELIGIBLE STUDENTS.—For purposes of receiving grant

aid under this subsection, eligible students shall be current participants in the student support services program offered by the

institution and be—

‘‘(A) students who are in their first 2 years of postsecondary education and who are receiving Federal Pell

Grants under subpart 1; or

‘‘(B) students who have completed their first 2 years of

postsecondary education and who are receiving Federal Pell

Grants under subpart 1 if the institution demonstrates to

the satisfaction of the Secretary that—

‘‘(i) these students are at high risk of dropping out;

and

‘‘(ii) it will first meet the needs of all its eligible

first- and second-year students for services under this

paragraph.

‘‘(3) DETERMINATION OF NEED.—A grant provided to a student under paragraph (1) shall not be considered in determining that student’s need for grant or work assistance under

this title, except that in no case shall the total amount of student financial assistance awarded to a student under this title

exceed that student’s cost of attendance, as defined in section

472.

‘‘(4) MATCHING REQUIRED.—A recipient of a grant who uses

such funds for the purpose described in paragraph (1) shall

match the funds used for such purpose, in cash, from non-Federal funds, in an amount that is not less than 33 percent of the

total amount of funds used for that purpose. This paragraph

shall not apply to any grant recipient that is an institution of

higher education eligible to receive funds under part A or B of

title III or title V.

‘‘(5) RESERVATION.—In no event may a recipient use more

than 20 percent of the funds received under this section for

grant aid.

‘‘(6) SUPPLEMENT, NOT SUPPLANT.—Funds received by a

grant recipient that are used under this subsection shall be

used to supplement, and not supplant, non-Federal funds expended for student support services programs.’’.

53

(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

54

situated in the County of Marin, State of California, in an April 3,

1978 Quitclaim Deed, which was filed for record on June 5, 1978,

in Book 3384, at page 33, of the official Records of Marin County,

California.

(b) The Secretary shall execute the release of the reversionary

interests under subsection (a) without consideration.

(c) The Secretary shall execute and file in the appropriate office

or offices a deed of release, amended deed, or other appropriate instruments effectuating the release of the reversionary interests under

subsection (a). In all other respects the provisions of the April 3,

1978 Quitclaim Deed shall remain intact.

SEC. 321. (a) GRANTS TO NATIVE AMERICAN SCHOOLS AND

STATE EDUCATIONAL AGENCIES.— (1) ALLOCATION OF FUNDS.—Of the amount made available

under the heading ‘‘School improvement programs’’ for grants

made in accordance with this section for school repair and renovation, activities under part B of the Individuals with Disabilities Education Act (20 U.S.C. 1411 et seq.), and technology activities, the Secretary of Education shall allocate— (A) $75,000,000 for grants to impacted local educational agencies (as defined in paragraph (3)) for school

repair, renovation, and construction; (B) $3,250,000 for grants to outlying areas for school

repair and renovation in high-need schools and communities, allocated on such basis, and subject to such terms

and conditions, as the Secretary determines appropriate; (C) $25,000,000 for grants to public entities, private

nonprofit entities, and consortia of such entities, for use in

accordance with subpart 2 of part C of title X of the Elementary and Secondary Education Act of 1965; and

(D) the remainder to State educational agencies in proportion to the amount each State received under part A of

title I of the Elementary and Secondary Education Act of

1965 (20 U.S.C. 6311 et seq.) for fiscal year 2000, except

that no State shall receive less than 0.5 percent of the

amount allocated under this subparagraph.

(2) DETERMINATION OF GRANT AMOUNT.—

(A) DETERMINATION OF WEIGHTED STUDENT UNITS.—

For purposes of computing the grant amounts under paragraph (1)(A) for fiscal year 2001, the Secretary shall determine the results obtained by the computation made under

section 8003 of the Elementary and Secondary Education

Act of 1965 (20 U.S.C. 7703) with respect to children described in subsection (a)(1)(C) of such section and computed

under subsection (a)(2)(B) of such section for such year—

(i) for each impacted local educational agency that

receives funds under this section; and

(ii) for all such agencies together.

(B) COMPUTATION OF PAYMENT.—For fiscal year 2001,

the Secretary shall calculate the amount of a grant to an

impacted local educational agency by—

(i) dividing the amount described in paragraph

(1)(A) by the results of the computation described in

subparagraph (A)(ii); and

55

(ii) multiplying the number derived under clause

(i) by the results of the computation described in subparagraph (A)(i) for such agency.

(3) DEFINITION.—For purposes of this section, the term ‘‘impacted local educational agency’’ means, for fiscal year 2001—

(A) a local educational agency that receives a basic

support payment under section 8003(b) of the Elementary

and Secondary Education Act of 1965 (20 U.S.C. 7703(b))

for such fiscal year; and

(B) with respect to which the number of children determined under section 8003(a)(1)(C) of such Act for the preceding school year constitutes at least 50 percent of the

total student enrollment in the schools of the agency during

such school year.

(b) WITHIN-STATE ALLOCATIONS.— (1) ADMINISTRATIVE COSTS.— (A) STATE EDUCATIONAL AGENCY ADMINISTRATION.— Except as provided in subparagraph (B), each State educational agency may reserve not more than 1 percent of its

allocation under subsection (a)(1)(D) for the purpose of administering the distribution of grants under this subsection.

(B) STATE ENTITY ADMINISTRATION.—If the State educational agency transfers funds to a State entity described

in paragraph (2)(A), the agency shall transfer to such entity

0.75 of the amount reserved under this paragraph for the

purpose of administering the distribution of grants under

this subsection.

(2) RESERVATION FOR COMPETITIVE SCHOOL REPAIR AND

RENOVATION GRANTS TO LOCAL EDUCATIONAL AGENCIES.— (A) IN GENERAL.—Subject to the reservation under

paragraph (1), of the funds allocated to a State educational

agency under subsection (a)(1)(D), the State educational

agency shall distribute 75 percent of such funds to local

educational agencies or, if such State educational agency is

not responsible for the financing of education facilities, the

agency shall transfer such funds to the State entity responsible for the financing of education facilities (referred to in

this section as the ‘‘State entity’’) for distribution by such

entity to local educational agencies in accordance with this

paragraph, to be used, consistent with subsection (c), for

school repair and renovation.

(B) COMPETITIVE GRANTS TO LOCAL EDUCATIONAL

AGENCIES.—

(i) IN GENERAL.—The State educational agency or

State entity shall carry out a program of competitive

grants to local educational agencies for the purpose described in subparagraph (A). Of the total amount

available for distribution to such agencies under this

paragraph, the State educational agency or State entity, shall, in carrying out the competition—

(I) award to high poverty local educational

agencies described in clause (ii), in the aggregate,

at least an amount which bears the same relationship to such total amount as the aggregate amount

56

such local educational agencies received under

part A of title I of the Elementary and Secondary

Education Act of 1965 for fiscal year 2000 bears to

the aggregate amount received for such fiscal year

under such part by all local educational agencies

in the State;

(II) award to rural local educational agencies

in the State, in the aggregate, at least an amount

which bears the same relationship to such total

amount as the aggregate amount such rural local

educational agencies received under part A of title

I of the Elementary and Secondary Education Act

of 1965 for fiscal year 2000 bears to the aggregate

amount received for such fiscal year under such

part by all local educational agencies in the State;

and

(III) award the remaining funds to local educational agencies not receiving an award under

subclause (I) or (II), including high poverty and

rural local educational agencies that did not receive such an award.

(ii) HIGH POVERTY LOCAL EDUCATIONAL AGEN- CIES.—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.—

57

(i) IN GENERAL.—A State educational agency or

State entity may require local educational agencies to

match funds awarded under this subsection.

(ii) MATCH AMOUNT.—The amount of a match described in clause (i) may be established by using a sliding scale that takes into account the relative poverty of

the population served by the local educational agency.

(3) RESERVATION FOR COMPETITIVE IDEA OR TECHNOLOGY

GRANTS TO LOCAL EDUCATIONAL AGENCIES.— (A) IN GENERAL.—Subject to the reservation under

paragraph (1), of the funds allocated to a State educational

agency under subsection (a)(1)(D), the State educational

agency shall distribute 25 percent of such funds to local

educational agencies through competitive grant processes,

to be used for the following:

(i) To carry out activities under part B of the Individuals with Disabilities Education Act (20 U.S.C.

1411 et seq.).

(ii) For technology activities that are carried out in

connection with school repair and renovation,

including—

(I) wiring;

(II) acquiring hardware and software;

(III) acquiring connectivity linkages and resources; and

(IV) acquiring microwave, fiber optics, cable,

and satellite transmission equipment.

(B) CRITERIA FOR AWARDING IDEA GRANTS.—In awarding competitive grants under subparagraph (A) to be used

to carry out activities under part B of the Individuals with

Disabilities Education Act (20 U.S.C. 1411 et seq.), a State

educational agency shall take into account the following

criteria:

(i) The need of a local educational agency for additional funds for a student whose individually allocable

cost for expenses related to the Individuals with Disabilities Education Act substantially exceeds the State’s

average per-pupil expenditure (as defined in section

14101(2) of the Elementary and Secondary Education

Act of 1965 (20 U.S.C. 8801(2))).

(ii) The need of a local educational agency for additional funds for special education and related services under part B of the Individuals with Disabilities

Education Act (20 U.S.C. 1411 et seq.).

(iii) The need of a local educational agency for additional funds for assistive technology devices (as defined in section 602 of the Individuals with Disabilities

Education Act (20 U.S.C. 1401)) or assistive technology

services (as so defined) for children being served under

part B of the Individuals with Disabilities Education

Act (20 U.S.C. 1411 et seq.).

(iv) The need of a local educational agency for additional funds for activities under part B of the Individuals with Disabilities Education Act (20 U.S.C.

58

1411 et seq.) in order for children with disabilities to

make progress toward meeting the performance goals

and indicators established by the State under section

612(a)(16) of such Act (20 U.S.C. 1412).

(C) CRITERIA FOR AWARDING TECHNOLOGY GRANTS.—In

awarding competitive grants under subparagraph (A) to be

used for technology activities that are carried out in connection with school repair and renovation, a State educational

agency shall take into account the need of a local educational agency for additional funds for such activities, including the need for the activities described in subclauses

(I) through (IV) of subparagraph (A)(ii).

(c) RULES APPLICABLE TO SCHOOL REPAIR AND RENOVATION.— With respect to funds made available under this section that are

used for school repair and renovation, the following rules shall

apply:

(1) PERMISSIBLE USES OF FUNDS.—School repair and renovation shall be limited to one or more of the following:

(A) Emergency repairs or renovations to public school

facilities only to ensure the health and safety of students

and staff, including—

(i) repairing, replacing, or installing roofs, electrical wiring, plumbing systems, or sewage systems;

(ii) repairing, replacing, or installing heating, ventilation, or air conditioning systems (including insulation); and

(iii) bringing public schools into compliance with

fire and safety codes.

(B) School facilities modifications necessary to render

public school facilities accessible in order to comply with

the Americans with Disabilities Act of 1990 (42 U.S.C.

12101 et seq.).

(C) School facilities modifications necessary to render

public school facilities accessible in order to comply with

section 504 of the Rehabilitation Act of 1973 (29 U.S.C.

794).

(D) Asbestos abatement or removal from public school

facilities.

(E) Renovation, repair, and acquisition needs related to

the building infrastructure of a charter school.

(2) IMPERMISSIBLE USES OF FUNDS.—No funds received

under this section may be used for—

(A) payment of maintenance costs in connection with

any projects constructed in whole or part with Federal

funds provided under this section;

(B) the construction of new facilities, except for facilities for an impacted local educational agency (as defined in

subsection (a)(3)); or

(C) stadiums or other facilities primarily used for athletic contests or exhibitions or other events for which admission is charged to the general public.

(3) CHARTER SCHOOLS.—A public charter school that constitutes a local educational agency under State law shall be eligible for assistance under the same terms and conditions as any

59

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 nonFederal sources for school repair and renovation.

(d) SPECIAL RULE.—Each local educational agency that receives

funds under this section shall ensure that, if it carries out repair

or renovation through a contract, any such contract process ensures

the maximum number of qualified bidders, including small, minority, and women-owned businesses, through full and open competition.

(e) PUBLIC COMMENT.—Each local educational agency receiving

funds under paragraph (2) or (3) of subsection (b)—

(1) shall provide parents, educators, and all other interested members of the community the opportunity to consult on

the use of funds received under such paragraph;

(2) shall provide the public with adequate and efficient notice of the opportunity described in paragraph (1) in a widely

read and distributed medium; and

(3) shall provide the opportunity described in paragraph (1)

in accordance with any applicable State and local law specifying how the comments may be received and how the comments

may be reviewed by any member of the public.

(f) REPORTING.—

(1) LOCAL REPORTING.—Each local educational agency receiving funds under subsection (a)(1)(D) shall submit a report

to the State educational agency, at such time as the State educational agency may require, describing the use of such funds

for—

(A) school repair and renovation (and construction, in

the case of an impacted local educational agency (as defined in subsection (a)(3)));

(B) activities under part B of the Individuals with Disabilities Education Act (20 U.S.C. 1411 et seq.); and

(C) technology activities that are carried out in connection with school repair and renovation, including the activities described in subclauses (I) through (IV) of subsection (b)(3)(A)(ii).

(2) STATE REPORTING.—Each State educational agency

shall submit to the Secretary of Education, not later than December 31, 2002, a report on the use of funds received under

subsection (a)(1)(D) by local educational agencies for—

(A) school repair and renovation (and construction, in

the case of an impacted local educational agency (as defined in subsection (a)(3)));

(B) activities under part B of the Individuals with Disabilities Education Act (20 U.S.C. 1411 et seq.); and

(C) technology activities that are carried out in connection with school repair and renovation, including the acVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00063 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.000 pfrm03 PsN: HR1033
60

tivities described in subclauses (I) through (IV) of subsection (b)(3)(A)(ii).

(3) ADDITIONAL REPORTS.—Each entity receiving funds allocated under subsection (a)(1)(A) or (B) shall submit to the Secretary, not later than December 31, 2002, a report on its uses

of funds under this section, in such form and containing such

information as the Secretary may require.

(g) APPLICABILITY OF PART B OF IDEA.—If a local educational

agency uses funds received under this section to carry out activities

under part B of the Individuals with Disabilities Education Act (20

U.S.C. 1411 et seq.), such part (including provisions respecting the

participation of private school children), and any other provision of

law that applies to such part, shall apply to such use.

(h) REALLOCATION.—If a State educational agency does not

apply for an allocation of funds under subsection (a)(1)(D) for fiscal

year 2001, or does not use its entire allocation for such fiscal year,

the Secretary may reallocate the amount of the State educational

agency’s allocation (or the remainder thereof, as the case may be) to

the remaining State educational agencies in accordance with subsection (a)(1)(D).

(i) PARTICIPATION OF PRIVATE SCHOOLS.—

(1) IN GENERAL.—Section 6402 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7372) shall apply to

subsection (b)(2) in the same manner as it applies to activities

under title VI of such Act, except that—

(A) such section shall not apply with respect to the title

to any real property renovated or repaired with assistance

provided under this section;

(B) the term ‘‘services’’ as used in section 6402 of such

Act with respect to funds under this section shall be provided only to private, nonprofit elementary or secondary

schools with a rate of child poverty of at least 40 percent

and may include for purposes of subsection (b)(2) only—

(i) modifications of school facilities necessary to

meet the standards applicable to public schools under

the Americans with Disabilities Act of 1990 (42 U.S.C.

12101 et seq.);

(ii) modifications of school facilities necessary to

meet the standards applicable to public schools under

section 504 of the Rehabilitation Act of 1973 (29 U.S.C.

794); and

(iii) asbestos abatement or removal from school facilities; and

(C) notwithstanding the requirements of section

6402(b) of the Elementary and Secondary Education Act of

1965 (20 U.S.C. 7372(b)), expenditures for services provided

using funds made available under subsection (b)(2) shall be

considered equal for purposes of such section if the perpupil 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

61

schools in the school district of the local educational agency

receiving funds under this section.

(2) REMAINING FUNDS.—If the expenditure for services described in paragraph (1)(B) is less than the amount calculated

under paragraph (1)(C) because of insufficient need for such

services, the remainder shall be available to the local educational agency for renovation and repair of public school facilities.

(3) APPLICATION.—If any provision of this section, or the

application thereof, to any person or circumstances is judicially

determined to be invalid, the provisions of the remainder of the

section and the application to other persons or circumstances

shall not be affected thereby.

(j) DEFINITIONS.—For purposes of this section:

(1) CHARTER SCHOOL.—The term ‘‘charter school’’ has the

meaning given such term in section 10310(1) of the Elementary

and Secondary Education Act of 1965 (20 U.S.C. 8066(1)).

(2) ELEMENTARY SCHOOL.—The term ‘‘elementary school’’

has the meaning given such term in section 14101(14) of the Elementary and Secondary Education Act of 1965 (20 U.S.C.

8801(14)).

(3) LOCAL EDUCATIONAL AGENCY.—The term ‘‘local educational agency’’ has the meaning given such term in subparagraphs (A) and (B) of section 14101(18) of the Elementary and

Secondary Education Act of 1965 (20 U.S.C. 8801(18)).

(4) OUTLYING AREA.—The term ‘‘outlying area’’ has the

meaning given such term in section 14101(21) of the Elementary and Secondary Act of 1965 (20 U.S.C. 8801(21)).

(5) POOR CHILDREN AND CHILD POVERTY.—The terms ‘‘poor

children’’ and ‘‘child poverty’’ refer to children 5 to 17 years of

age, inclusive, who are from families with incomes below the

poverty line (as defined by the Office of Management and Budget and revised annually in accordance with section 673(2) of the

Community Services Block Grant (42 U.S.C. 9902(2)) applicable

to a family of the size involved for the most recent fiscal year

for which data satisfactory to the Secretary are available.

(6) RURAL LOCAL EDUCATIONAL AGENCY.—The term ‘‘rural

local educational agency’’ means a local educational agency

that the State determines is located in a rural area using objective data and a commonly employed definition of the term

‘‘rural’’.

(7) SECONDARY SCHOOL.—The term ‘‘secondary school’’ has

the meaning given such term in section 14101(25) of the Elementary and Secondary Education Act of 1965 (20 U.S.C.

8801(25)).

(8) STATE.—The term ‘‘State’’ means each of the 50 states,

the District of Columbia, and the Commonwealth of Puerto

Rico.

SEC. 322. (a) Part C of title X of the Elementary and Secondary

Education Act of 1965 (20 U.S.C. 8061 et seq.) is amended—

(1) by inserting after the part heading the following:

62

‘‘Subpart 1—Basic Charter School Grant

Program’’;

and

(2) by adding at the end the following:

‘‘Subpart 2—Credit Enhancement Initiatives To Assist Charter School Facility Acquisition, Construction, and Renovation

‘‘SEC. 10321. PURPOSE.

‘‘The purpose of this subpart is to provide one-time grants to eligible entities to permit them to demonstrate innovative credit enhancement initiatives that assist charter schools to address the cost

of acquiring, constructing, and renovating facilities.

‘‘SEC. 10322. GRANTS TO ELIGIBLE ENTITIES.

‘‘(a) IN GENERAL.—The Secretary shall use 100 percent of the

amount available to carry out this subpart to award not less than

3 grants to eligible entities having applications approved under this

subpart to demonstrate innovative methods of assisting charter

schools to address the cost of acquiring, constructing, and renovating facilities by enhancing the availability of loans or bond financing.

‘‘(b) GRANTEE SELECTION.—The Secretary shall evaluate each

application submitted, and shall make a determination of which are

sufficient to merit approval and which are not. The Secretary shall

award at least one grant to an eligible entity described in section

10330(2)(A), at least one grant to an eligible entity described in section 10330(2)(B), and at least one grant to an eligible entity described in section 10330(2)(C), if applications are submitted that

permit the Secretary to do so without approving an application that

is not of sufficient quality to merit approval.

‘‘(c) GRANT CHARACTERISTICS.—Grants under this subpart shall

be of a sufficient size, scope, and quality so as to ensure an effective

demonstration of an innovative means of enhancing credit for the

financing of charter school acquisition, construction, or renovation.

‘‘(d) SPECIAL RULE.—In the event the Secretary determines that

the funds available are insufficient to permit the Secretary to award

not less than 3 grants in accordance with subsections (a) through

(c), such 3-grant minimum and the second sentence of subsection (b)

shall not apply, and the Secretary may determine the appropriate

number of grants to be awarded in accordance with subsection (c).

‘‘SEC. 10323. APPLICATIONS.

‘‘(a) IN GENERAL.—To receive a grant under this subpart, an eligible entity shall submit to the Secretary an application in such

form as the Secretary may reasonably require.

‘‘(b) CONTENTS.—An application under subsection (a) shall

contain—

‘‘(1) a statement identifying the activities proposed to be undertaken with funds received under this subpart, including how

the applicant will determine which charter schools will receive

63

assistance, and how much and what types of assistance charter

schools will receive;

‘‘(2) a description of the involvement of charter schools in

the application’s development and the design of the proposed

activities;

‘‘(3) a description of the applicant’s expertise in capital

market financing;

‘‘(4) a description of how the proposed activities will leverage the maximum amount of private-sector financing capital

relative to the amount of government funding used and otherwise enhance credit available to charter schools;

‘‘(5) a description of how the applicant possesses sufficient

expertise in education to evaluate the likelihood of success of a

charter school program for which facilities financing is sought;

‘‘(6) in the case of an application submitted by a State governmental entity, a description of the actions that the entity has

taken, or will take, to ensure that charter schools within the

State receive the funding they need to have adequate facilities;

and

‘‘(7) such other information as the Secretary may reasonably require.

‘‘SEC. 10324. CHARTER SCHOOL OBJECTIVES.

‘‘An eligible entity receiving a grant under this subpart shall

use the funds deposited in the reserve account established under section 10325(a) to assist one or more charter schools to access private

sector capital to accomplish one or both of the following objectives:

‘‘(1) The acquisition (by purchase, lease, donation, or otherwise) of an interest (including an interest held by a third party

for the benefit of a charter school) in improved or unimproved

real property that is necessary to commence or continue the operation of a charter school.

‘‘(2) The construction of new facilities, or the renovation, repair, or alteration of existing facilities, necessary to commence

or continue the operation of a charter school.

‘‘SEC. 10325. RESERVE ACCOUNT.

‘‘(a) USE OF FUNDS.—To assist charter schools to accomplish

the objectives described in section 10324, an eligible entity receiving

a grant under this subpart shall, in accordance with State and local

law, directly or indirectly, alone or in collaboration with others, deposit the funds received under this subpart (other than funds used

for administrative costs in accordance with section 10326) in a reserve account established and maintained by the entity for this purpose. Amounts deposited in such account shall be used by the entity

for one or more of the following purposes:

‘‘(1) Guaranteeing, insuring, and reinsuring bonds, notes,

evidences of debt, loans, and interests therein, the proceeds of

which are used for an objective described in section 10324.

‘‘(2) Guaranteeing and insuring leases of personal and real

property for an objective described in section 10324.

‘‘(3) Facilitating financing by identifying potential lending

sources, encouraging private lending, and other similar activities that directly promote lending to, or for the benefit of, charter schools.

64

‘‘(4) Facilitating the issuance of bonds by charter schools,

or by other public entities for the benefit of charter schools, by

providing technical, administrative, and other appropriate assistance (including the recruitment of bond counsel, underwriters, and potential investors and the consolidation of multiple charter school projects within a single bond issue).

‘‘(b) INVESTMENT.—Funds received under this subpart and deposited in the reserve account shall be invested in obligations issued

or guaranteed by the United States or a State, or in other similarly

low-risk securities.

‘‘(c) REINVESTMENT OF EARNINGS.—Any earnings on funds received under this subpart shall be deposited in the reserve account

established under subsection (a) and used in accordance with such

subsection.

‘‘SEC. 10326. LIMITATION ON ADMINISTRATIVE COSTS.

‘‘An eligible entity may use not more than 0.25 percent of the

funds received under this subpart for the administrative costs of

carrying out its responsibilities under this subpart.

‘‘SEC. 10327. AUDITS AND REPORTS.

‘‘(a) FINANCIAL RECORD MAINTENANCE AND AUDIT.—The financial records of each eligible entity receiving a grant under this subpart shall be maintained in accordance with generally accepted accounting principles and shall be subject to an annual audit by an

independent public accountant.

‘‘(b) REPORTS.— ‘‘(1) GRANTEE ANNUAL REPORTS.—Each eligible entity receiving a grant under this subpart annually shall submit to the

Secretary a report of its operations and activities under this

subpart.

‘‘(2) CONTENTS.—Each such annual report shall include—

‘‘(A) a copy of the most recent financial statements, and

any accompanying opinion on such statements, prepared by

the independent public accountant reviewing the financial

records of the eligible entity;

‘‘(B) a copy of any report made on an audit of the financial records of the eligible entity that was conducted

under subsection (a) during the reporting period;

‘‘(C) an evaluation by the eligible entity of the effectiveness of its use of the Federal funds provided under this

subpart in leveraging private funds;

‘‘(D) a listing and description of the charter schools

served during the reporting period;

‘‘(E) a description of the activities carried out by the eligible entity to assist charter schools in meeting the objectives set forth in section 10324; and

‘‘(F) a description of the characteristics of lenders and

other financial institutions participating in the activities

undertaken by the eligible entity under this subpart during

the reporting period.

‘‘(3) SECRETARIAL REPORT.—The Secretary shall review the

reports submitted under paragraph (1) and shall provide a

comprehensive annual report to the Congress on the activities

conducted under this subpart.

65

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

‘‘No financial obligation of an eligible entity entered into pursuant to this subpart (such as an obligation under a guarantee, bond,

note, evidence of debt, or loan) shall be an obligation of, or guaranteed in any respect by, the United States. The full faith and credit

of the United States is not pledged to the payment of funds which

may be required to be paid under any obligation made by an eligible entity pursuant to any provision of this subpart.

‘‘SEC. 10329. RECOVERY OF FUNDS.

‘‘(a) IN GENERAL.—The Secretary, in accordance with chapter

37 of title 31, United States Code, shall collect—

‘‘(1) all of the funds in a reserve account established by an

eligible entity under section 10325(a) if the Secretary determines, not earlier than 2 years after the date on which the entity first received funds under this subpart, that the entity has

failed to make substantial progress in carrying out the purposes

described in section 10325(a); or

‘‘(2) all or a portion of the funds in a reserve account established by an eligible entity under section 10325(a) if the Secretary determines that the eligible entity has permanently

ceased to use all or a portion of the funds in such account to

accomplish any purpose described in section 10325(a).

‘‘(b) EXERCISE OF AUTHORITY.—The Secretary shall not exercise

the authority provided in subsection (a) to collect from any eligible

entity any funds that are being properly used to achieve one or more

of the purposes described in section 10325(a).

‘‘(c) PROCEDURES.—The provisions of sections 451, 452, and 458

of the General Education Provisions Act (20 U.S.C. 1234 et seq.)

shall apply to the recovery of funds under subsection (a).

‘‘(d) CONSTRUCTION.—This section shall not be construed to impair or affect the authority of the Secretary to recover funds under

part D of the General Education Provisions Act (20 U.S.C. 1234 et

seq.).

‘‘SEC. 10330. DEFINITIONS.

‘‘In this subpart:

‘‘(1) The term ‘charter school’ has the meaning given such

term in section 10310.

‘‘(2) The term ‘eligible entity’ means—

‘‘(A) a public entity, such as a State or local governmental entity;

‘‘(B) a private nonprofit entity; or

‘‘(C) a consortium of entities described in subparagraphs (A) and (B).

‘‘SEC. 10331. AUTHORIZATION OF APPROPRIATIONS.

‘‘For the purpose of carrying out this subpart, there are authorized to be appropriated $100,000,000 for fiscal year 2001.’’.

(b) Part C of title X of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 8061 et seq.) is amended in each of

the following provisions by striking ‘‘part’’ each place such term appears and inserting ‘‘subpart’’:

(1) Sections 10301 through 10305.

(2) Section 10307.

66

(3) Sections 10309 through 10311.

SEC. 323. (a) Section 8003(b)(2)(F) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7703(b)(2)(F)) is

amended—

(1) by striking ‘‘the Secretary shall use’’ and inserting ‘‘the

Secretary—

‘‘(i) shall use’’;

(2) by striking the period at the end and inserting ‘‘; and’’;

and

(3) by adding at the end the following:

‘‘(ii) except as provided in subparagraph (C)(i)(I),

shall include all of the children described in subparagraphs (F) and (G) of subsection (a)(1) enrolled in

schools of the local educational agency in determining

(I) the eligibility of the agency for assistance under this

paragraph, and (II) the amount of such assistance if

the number of such children meet the requirements of

subsection (a)(3).’’.

(b) Section 8003(b)(2) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7703(b)(2)) is amended by adding at

the end the following:

‘‘(G) DETERMINATION OF AVERAGE TAX RATES FOR GENERAL FUND PURPOSES.—For the purpose of determining average tax rates for general fund purposes for local educational agencies in a State under this paragraph (except

under subparagraph (C)(i)(II)(bb)), the Secretary shall use

either—

‘‘(i) the average tax rate for general fund purposes

for comparable local educational agencies, as determined by the Secretary in regulations; or

‘‘(ii) the average tax rate of all the local educational agencies in the State.’’.

This title may be cited as the ‘‘Department of Education Appropriations Act, 2001’’.

TITLE IV—RELATED AGENCIES

ARMED FORCES RETIREMENT HOME

For expenses necessary for the Armed Forces Retirement Home

to operate and maintain the United States Soldiers’ and Airmen’s

Home and the United States Naval Home, to be paid from funds

available in the Armed Forces Retirement Home Trust Fund,

$69,832,000, of which $9,832,000 shall remain available until expended for construction and renovation of the physical plants at the

United States Soldiers’ and Airmen’s Home and the United States

Naval Home: Provided, That, notwithstanding any other provision

of law, a single contract or related contracts for development and

construction, to include construction of a long-term care facility at

the United States Naval Home, may be employed which collectively

include the full scope of the project: Provided further, That the solicitation and contract shall contain the clause ‘‘availability of funds’’

found at 48 CFR 52.232–18 and 252.232–7007, Limitation of Government Obligations.

67

CORPORATION FOR NATIONAL AND COMMUNITY SERVICE

DOMESTIC VOLUNTEER SERVICE PROGRAMS, OPERATING EXPENSES

For expenses necessary for the Corporation for National and

Community Service to carry out the provisions of the Domestic Volunteer Service Act of 1973, as amended, $303,850,000: Provided,

That none of the funds made available to the Corporation for National and Community Service in this Act for activities authorized

by part E of title II of the Domestic Volunteer Service Act of 1973

shall be used to provide stipends or other monetary incentives to volunteers or volunteer leaders whose incomes exceed 125 percent of the

national poverty level.

CORPORATION FOR PUBLIC BROADCASTING

For payment to the Corporation for Public Broadcasting, as authorized by the Communications Act of 1934, an amount which

shall be available within limitations specified by that Act, for the

fiscal year 2003, $365,000,000: Provided, That no funds made

available to the Corporation for Public Broadcasting by this Act

shall be used to pay for receptions, parties, or similar forms of entertainment for Government officials or employees: Provided further,

That none of the funds contained in this paragraph shall be available or used to aid or support any program or activity from which

any person is excluded, or is denied benefits, or is discriminated

against, on the basis of race, color, national origin, religion, or sex:

Provided further, That in addition to the amounts provided above,

$20,000,000, to remain available until expended, shall be for digitalization, pending enactment of authorizing legislation.

FEDERAL MEDIATION AND CONCILIATION SERVICE

SALARIES AND EXPENSES

For expenses necessary for the Federal Mediation and Conciliation Service to carry out the functions vested in it by the Labor

Management Relations Act, 1947 (29 U.S.C. 171–180, 182–183), including hire of passenger motor vehicles; for expenses necessary for

the Labor-Management Cooperation Act of 1978 (29 U.S.C. 175a);

and for expenses necessary for the Service to carry out the functions

vested in it by the Civil Service Reform Act, Public Law 95–454 (5

U.S.C. ch. 71), $38,200,000, including $1,500,000, to remain available through September 30, 2002, for activities authorized by the

Labor-Management Cooperation Act of 1978 (29 U.S.C. 175a): Provided, That notwithstanding 31 U.S.C. 3302, fees charged, up to

full-cost recovery, for special training activities and other conflict

resolution services and technical assistance, including those provided to foreign governments and international organizations, and

for arbitration services shall be credited to and merged with this account, and shall remain available until expended: Provided further,

That fees for arbitration services shall be available only for education, training, and professional development of the agency workforce: Provided further, That the Director of the Service is authorized to accept and use on behalf of the United States gifts of services

68

and real, personal, or other property in the aid of any projects or

functions within the Director’s jurisdiction.

FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION

SALARIES AND EXPENSES

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

INSTITUTE OF MUSEUM AND LIBRARY SERVICES

OFFICE OF LIBRARY SERVICES: GRANTS AND ADMINISTRATION

For carrying out subtitle B of the Museum and Library Services Act, $207,219,000: Provided, That of the amount provided,

$1,000,000 shall be awarded to the National Museum of Women in

the Arts in Washington, D.C., $700,000 shall be awarded to the

University of Idaho Institute for the Historic Study of Jazz,

$2,600,000 shall be awarded to Southeast Missouri State University

River Campus and Museum, $900,000 shall be awarded to the Heritage Harbor Museum in Rhode Island, $500,000 shall be awarded

to the Alaska Native Heritage Center, $576,000 shall be awarded to

the Franklin Institute in Philadelphia, $925,000 shall be awarded

to the Please Touch Museum, $250,000 shall be awarded to the

Pittsburgh Children’s Museum, $510,000 shall be awarded to the

Temple University Library, $1,800,000 shall be awarded to Franklin Pierce College in New Hampshire, $500,000 shall be awarded to

the Louisville Zoo in Kentucky, $150,000 shall be awarded to the

Oregon Historical Society, $1,200,000 shall be awarded to the Mississippi River Museum and Discovery Center in Dubuque, Iowa,

$650,000 shall be awarded to the Salisbury House Foundation in

Des Moines, Iowa, $150,000 shall be awarded to the History Center

for the Linn County Historical Museum in Iowa, $4,000,000 shall

be awarded to the Newsline for the Blind, of which $100,000 shall

be awarded to the Iowa Newsline for the Blind and $100,000 shall

be awarded to the West Virginia Newsline for the Blind, $1,000,000

shall be awarded to the Clay Center for the Arts and Sciences,

$650,000 shall be awarded to Bishops Museum in Hawaii, $500,000

shall be awarded to the Wisconsin Maritime Museum, $250,000

shall be awarded to the Natural History Museum of Los Angeles,

$400,000 shall be awarded to the Perkins Geology Museum at the

University of Vermont, $400,000 shall be awarded to the Walt Whitman Cultural Arts Center in Camden, New Jersey, $400,000 shall

be awarded to the Plainfield Public Library in Plainfield, New Jersey, $150,000 shall be awarded to the Ducktown Arts District in Atlantic City, New Jersey, $400,000 shall be awarded to the Lake

Champlain Science Center in Vermont, $250,000 shall be awarded

to the Foundation for the Arts, Music, and Entertainment of Shreveport-Bossier, Inc., $100,000 shall be awarded to Bryant College in

Rhode Island, $120,000 shall be awarded to the Fenton Historical

Museum of Jamestown, New York, $921,000 shall be awarded to

the Mariners’ Museum in Newport News, Virginia, $461,000 shall

be awarded to DuPage County Children’s Museum in Naperville, Illinois, $369,000 shall be awarded to the National Baseball Hall of

Fame Library in Cooperstown, New York, $92,000 shall be awarded

69

to the City of Corona, Riverside, California, $6,000 shall be awarded to the City of Murrieta, California Public Library, $1,382,000

shall be awarded to the Sierra Madre, California Public Library,

$23,000 shall be awarded to the Brooklyn Public Library in Brooklyn, New York, $46,000 shall be awarded to the New York Public

Library Staten Island branch, $266,000 shall be awarded to the Edward H. Nabb Research Center at Salisbury State University in

Salisbury, Maryland, $461,000 shall be awarded to Texas Tech

University, $230,000 shall be awarded to the City of Ontario, California Public Library, $461,000 shall be awarded to the Southern

Oregon University in Ashland, Oregon, $1,106,000 shall be awarded

to Christopher Newport University in Newport News, Virginia,

$128,000 shall be awarded to the Nassau County Museum of Art in

Roslyn Harbor, New York, $850,000 shall be awarded to the Children’s Museum of Los Angeles, $43,000 shall be awarded to Sumter

County Library in Sumter, South Carolina, $298,000 shall be

awarded to Columbia College Center for Black Music Research in

Chicago, Illinois, $723,000 shall be awarded to Old Sturbridge Village in Sturbridge, Massachusetts, $723,000 shall be awarded to

New Bedford Whaling Museum in Massachusetts, $298,000 shall be

awarded to Mystic Seaport Museum of America and the Sea in Connecticut, $468,000 shall be awarded to the City of Houston Public

Library, $128,000 shall be awarded to the Roberson Museum and

Science Center in Binghampton, New York, $850,000 shall be

awarded to Berman Museum of Art at Ursinus College in

Collegeville, Pennsylvania, $680,000 shall be awarded to AMISTAD

Research Center at Tulane University, $2,125,000 shall be awarded

to Silas Bronson Library in Waterbury, Connecticut, $213,000 shall

be awarded to Fitchburg Art Museum in Fitchburg, Massachusetts,

$128,000 shall be awarded to North Carolina Museum of Life and

Science, $2,435,000 shall be awarded to New York Public Library,

$85,000 shall be awarded to the New York Botanical Garden in

Bronx, New York, $170,000 shall be awarded to George Eastman

House in Rochester, New York, $425,000 shall be awarded to The

National Aviary in Pittsburgh, Pennsylvania, $723,000 shall be

awarded to the George C. Page Museum in Los Angeles, California,

$461,000 shall be awarded to the Abraham Lincoln Bicentennial

Commission, and $410,000 shall be awarded to the AE Seaman

Mineral Museum in Houghton, Michigan.

MEDICARE PAYMENT ADVISORY COMMISSION

SALARIES AND EXPENSES

For expenses necessary to carry out section 1805 of the Social

Security Act, $8,000,000, to be transferred to this appropriation

from the Federal Hospital Insurance and the Federal Supplementary Medical Insurance Trust Funds.

NATIONAL COMMISSION ON LIBRARIES AND INFORMATION SCIENCE

SALARIES AND EXPENSES

For necessary expenses for the National Commission on Libraries and Information Science, established by the Act of July 20, 1970

(Public Law 91–345, as amended), $1,495,000.

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NATIONAL COUNCIL ON DISABILITY

SALARIES AND EXPENSES

For expenses necessary for the National Council on Disability

as authorized by title IV of the Rehabilitation Act of 1973, as

amended, $2,615,000.

NATIONAL EDUCATION GOALS PANEL

For expenses necessary for the National Education Goals Panel,

as authorized by title II, part A of the Goals 2000: Educate America

Act, $1,500,000.

NATIONAL LABOR RELATIONS BOARD

SALARIES AND EXPENSES

For expenses necessary for the National Labor Relations Board

to carry out the functions vested in it by the Labor-Management Relations Act, 1947, as amended (29 U.S.C. 141–167), and other laws,

$216,438,000: Provided, That no part of this appropriation shall be

available to organize or assist in organizing agricultural laborers or

used in connection with investigations, hearings, directives, or orders concerning bargaining units composed of agricultural laborers

as referred to in section 2(3) of the Act of July 5, 1935 (29 U.S.C.

152), and as amended by the Labor-Management Relations Act,

1947, as amended, and as defined in section 3(f) of the Act of June

25, 1938 (29 U.S.C. 203), and including in said definition employees engaged in the maintenance and operation of ditches, canals,

reservoirs, and waterways when maintained or operated on a mutual, nonprofit basis and at least 95 percent of the water stored or

supplied thereby is used for farming purposes.

NATIONAL MEDIATION BOARD

SALARIES AND EXPENSES

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

OCCUPATIONAL SAFETY AND HEALTH REVIEW COMMISSION

SALARIES AND EXPENSES

For expenses necessary for the Occupational Safety and Health

Review Commission (29 U.S.C. 661), $8,720,000.

RAILROAD RETIREMENT BOARD

DUAL BENEFITS PAYMENTS ACCOUNT

For payment to the Dual Benefits Payments Account, authorized

under section 15(d) of the Railroad Retirement Act of 1974,

$160,000,000, which shall include amounts becoming available in

fiscal year 2001 pursuant to section 224(c)(1)(B) of Public Law 98–

76; and in addition, an amount, not to exceed 2 percent of the

amount provided herein, shall be available proportional to the

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amount by which the product of recipients and the average benefit

received exceeds $160,000,000: Provided, That the total amount provided herein shall be credited in 12 approximately equal amounts

on the first day of each month in the fiscal year.

FEDERAL PAYMENTS TO THE RAILROAD RETIREMENT ACCOUNTS

For payment to the accounts established in the Treasury for the

payment of benefits under the Railroad Retirement Act for interest

earned on unnegotiated checks, $150,000, to remain available

through September 30, 2002, which shall be the maximum amount

available for payment pursuant to section 417 of Public Law 98–76.

LIMITATION ON ADMINISTRATION

For necessary expenses for the Railroad Retirement Board for

administration of the Railroad Retirement Act and the Railroad

Unemployment Insurance Act, $95,000,000, to be derived in such

amounts as determined by the Board from the railroad retirement

accounts and from moneys credited to the railroad unemployment

insurance administration fund.

LIMITATION ON THE OFFICE OF INSPECTOR GENERAL

For expenses necessary for the Office of Inspector General for

audit, investigatory and review activities, as authorized by the Inspector General Act of 1978, as amended, not more than $5,700,000,

to be derived from the railroad retirement accounts and railroad

unemployment insurance account: Provided, That none of the funds

made available in any other paragraph of this Act may be transferred to the Office; used to carry out any such transfer; used to provide any office space, equipment, office supplies, communications facilities or services, maintenance services, or administrative services

for the Office; used to pay any salary, benefit, or award for any personnel of the Office; used to pay any other operating expense of the

Office; or used to reimburse the Office for any service provided, or

expense incurred, by the Office.

SOCIAL SECURITY ADMINISTRATION

PAYMENTS TO SOCIAL SECURITY TRUST FUNDS

For payment to the Federal Old-Age and Survivors Insurance

and the Federal Disability Insurance trust funds, as provided under

sections 201(m), 228(g), and 1131(b)(2) of the Social Security Act,

$20,400,000.

SPECIAL BENEFITS FOR DISABLED COAL MINERS

For carrying out title IV of the Federal Mine Safety and Health

Act of 1977, $365,748,000, to remain available until expended.

For making, after July 31 of the current fiscal year, benefit payments to individuals under title IV of the Federal Mine Safety and

Health Act of 1977, for costs incurred in the current fiscal year,

such amounts as may be necessary.

For making benefit payments under title IV of the Federal Mine

Safety and Health Act of 1977 for the first quarter of fiscal year

2002, $114,000,000, to remain available until expended.

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SUPPLEMENTAL SECURITY INCOME PROGRAM

For carrying out titles XI and XVI of the Social Security Act,

section 401 of Public Law 92–603, section 212 of Public Law 93–66,

as amended, and section 405 of Public Law 95–216, including payment to the Social Security trust funds for administrative expenses

incurred pursuant to section 201(g)(1) of the Social Security Act,

$23,043,000,000, to remain available until expended: Provided,

That any portion of the funds provided to a State in the current fiscal year and not obligated by the State during that year shall be

returned to the Treasury.

In addition, $210,000,000, to remain available until September

30, 2002, for payment to the Social Security trust funds for administrative expenses for continuing disability reviews as authorized by

section 103 of Public Law 104–121 and section 10203 of Public Law

105–33. The term ‘‘continuing disability reviews’’ means reviews and

redeterminations as defined under section 201(g)(1)(A) of the Social

Security Act, as amended.

For making, after June 15 of the current fiscal year, benefit

payments to individuals under title XVI of the Social Security Act,

for unanticipated costs incurred for the current fiscal year, such

sums as may be necessary.

For making benefit payments under title XVI of the Social Security Act for the first quarter of fiscal year 2002, $10,470,000,000,

to remain available until expended.

LIMITATION ON ADMINISTRATIVE EXPENSES

For necessary expenses, including the hire of two passenger

motor vehicles, and not to exceed $10,000 for official reception and

representation expenses, not more than $6,583,000,000 may be expended, as authorized by section 201(g)(1) of the Social Security Act,

from any one or all of the trust funds referred to therein: Provided,

That not less than $1,800,000 shall be for the Social Security Advisory Board: Provided further, That unobligated balances at the end

of fiscal year 2001 not needed for fiscal year 2001 shall remain

available until expended to invest in the Social Security Administration information technology and telecommunications hardware

and software infrastructure, including related equipment and nonpayroll 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 alVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00076 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.000 pfrm03 PsN: HR1033
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ready available under this heading for fiscal year 2001, be available

for necessary expenses.

From funds provided under the first paragraph, not less than

$200,000,000 shall be available for conducting continuing disability

reviews.

In addition to funding already available under this heading,

and subject to the same terms and conditions, $450,000,000, to remain available until September 30, 2002, for continuing disability

reviews as authorized by section 103 of Public Law 104–121 and

section 10203 of Public Law 105–33. The term ‘‘continuing disability reviews’’ means reviews and redeterminations as defined

under section 201(g)(1)(A) of the Social Security Act, as amended.

In addition, $91,000,000 to be derived from administration fees

in excess of $5.00 per supplementary payment collected pursuant to

section 1616(d) of the Social Security Act or section 212(b)(3) of

Public Law 93–66, which shall remain available until expended. To

the extent that the amounts collected pursuant to such section

1616(d) or 212(b)(3) in fiscal year 2001 exceed $91,000,000, the

amounts shall be available in fiscal year 2002 only to the extent

provided in advance in appropriations Acts.

From funds previously appropriated for this purpose, any unobligated balances at the end of fiscal year 2000 shall be available to

continue Federal-State partnerships which will evaluate means to

promote Medicare buy-in programs targeted to elderly and disabled

individuals under titles XVIII and XIX of the Social Security Act.

From funds provided under the first paragraph, up to

$6,000,000 shall be available for implementation, development,

evaluation, and other costs associated with administration of section 302 of the Ticket to Work and Work Incentives Improvement

Act.

OFFICE OF INSPECTOR GENERAL

(INCLUDING TRANSFER OF FUNDS)

For expenses necessary for the Office of Inspector General in

carrying out the provisions of the Inspector General Act of 1978, as

amended, $16,944,000, together with not to exceed $52,500,000, to

be transferred and expended as authorized by section 201(g)(1) of

the Social Security Act from the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust

Fund.

In addition, an amount not to exceed 3 percent of the total provided in this appropriation may be transferred from the ‘‘Limitation

on Administrative Expenses’’, Social Security Administration, to be

merged with this account, to be available for the time and purposes

for which this account is available: Provided, That notice of such

transfers shall be transmitted promptly to the Committees on Appropriations of the House and Senate.

74

UNITED STATES INSTITUTE OF PEACE

OPERATING EXPENSES

For necessary expenses of the United States Institute of Peace

as authorized in the United States Institute of Peace Act,

$15,000,000.

TITLE V—GENERAL PROVISIONS

SEC. 501. The Secretaries of Labor, Health and Human Services, and Education are authorized to transfer unexpended balances

of prior appropriations to accounts corresponding to current appropriations provided in this Act: Provided, That such transferred balances are used for the same purpose, and for the same periods of

time, for which they were originally appropriated.

SEC. 502. No part of any appropriation contained in this Act

shall remain available for obligation beyond the current fiscal year

unless expressly so provided herein.

SEC. 503. (a) No part of any appropriation contained in this Act

shall be used, other than for normal and recognized executive-legislative relationships, for publicity or propaganda purposes, for the

preparation, distribution, or use of any kit, pamphlet, booklet, publication, radio, television, or video presentation designed to support or

defeat legislation pending before the Congress or any State legislature, except in presentation to the Congress or any State legislature

itself.

(b) No part of any appropriation contained in this Act shall be

used to pay the salary or expenses of any grant or contract recipient,

or agent acting for such recipient, related to any activity designed

to influence legislation or appropriations pending before the Congress or any State legislature.

SEC. 504. The Secretaries of Labor and Education are authorized to make available not to exceed $20,000 and $15,000, respectively, from funds available for salaries and expenses under titles I

and III, respectively, for official reception and representation expenses; the Director of the Federal Mediation and Conciliation Service is authorized to make available for official reception and representation expenses not to exceed $2,500 from the funds available

for ‘‘Salaries and expenses, Federal Mediation and Conciliation

Service’’; and the Chairman of the National Mediation Board is authorized to make available for official reception and representation

expenses not to exceed $2,500 from funds available for ‘‘Salaries and

expenses, National Mediation Board’’.

SEC. 505. Notwithstanding any other provision of this Act, no

funds appropriated under this Act shall be used to carry out any

program of distributing sterile needles or syringes for the hypodermic injection of any illegal drug.

SEC. 506. (a) It is the sense of the Congress that, to the greatest

extent practicable, all equipment and products purchased with

funds made available in this Act should be American-made.

(b) In providing financial assistance to, or entering into any

contract with, any entity using funds made available in this Act, the

head of each Federal agency, to the greatest extent practicable, shall

75

provide to such entity a notice describing the statement made in

subsection (a) by the Congress.

(c) If it has been finally determined by a court or Federal agency that any person intentionally affixed a label bearing a ‘‘Made in

America’’ inscription, or any inscription with the same meaning, to

any product sold in or shipped to the United States that is not made

in the United States, the person shall be ineligible to receive any

contract or subcontract made with funds made available in this Act,

pursuant to the debarment, suspension, and ineligibility procedures

described in sections 9.400 through 9.409 of title 48, Code of Federal Regulations.

SEC. 507. When issuing statements, press releases, requests for

proposals, bid solicitations and other documents describing projects

or programs funded in whole or in part with Federal money, all

grantees receiving Federal funds included in this Act, including but

not limited to State and local governments and recipients of Federal

research grants, shall clearly state: (1) the percentage of the total

costs of the program or project which will be financed with Federal

money; (2) the dollar amount of Federal funds for the project or program; and (3) percentage and dollar amount of the total costs of the

project or program that will be financed by non-governmental

sources.

SEC. 508. (a) None of the funds appropriated under this Act,

and none of the funds in any trust fund to which funds are appropriated under this Act, shall be expended for any abortion.

(b) None of the funds appropriated under this Act, and none of

the funds in any trust fund to which funds are appropriated under

this Act, shall be expended for health benefits coverage that includes

coverage of abortion.

(c) The term ‘‘health benefits coverage’’ means the package of

services covered by a managed care provider or organization pursuant to a contract or other arrangement.

SEC. 509. (a) The limitations established in the preceding section shall not apply to an abortion—

(1) if the pregnancy is the result of an act of rape or incest;

or

(2) in the case where a woman suffers from a physical disorder, physical injury, or physical illness, including a life-endangering physical condition caused by or arising from the

pregnancy itself, that would, as certified by a physician, place

the woman in danger of death unless an abortion is performed.

(b) Nothing in the preceding section shall be construed as prohibiting the expenditure by a State, locality, entity, or private person

of State, local, or private funds (other than a State’s or locality’s

contribution of Medicaid matching funds).

(c) Nothing in the preceding section shall be construed as restricting the ability of any managed care provider from offering

abortion coverage or the ability of a State or locality to contract separately with such a provider for such coverage with State funds

(other than a State’s or locality’s contribution of Medicaid matching

funds).

SEC. 510. (a) None of the funds made available in this Act may

be used for—

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(1) the creation of a human embryo or embryos for research

purposes; or

(2) research in which a human embryo or embryos are destroyed, discarded, or knowingly subjected to risk of injury or

death greater than that allowed for research on fetuses in utero

under 45 CFR 46.208(a)(2) and section 498(b) of the Public

Health Service Act (42 U.S.C. 289g(b)).

(b) For purposes of this section, the term ‘‘human embryo or embryos’’ includes any organism, not protected as a human subject

under 45 CFR 46 as of the date of the enactment of this Act, that

is derived by fertilization, parthenogenesis, cloning, or any other

means from one or more human gametes or human diploid cells.

SEC. 511. (a) None of the funds made available in this Act may

be used for any activity that promotes the legalization of any drug

or other substance included in schedule I of the schedules of controlled substances established by section 202 of the Controlled Substances Act (21 U.S.C. 812).

(b) The limitation in subsection (a) shall not apply when there

is significant medical evidence of a therapeutic advantage to the use

of such drug or other substance or that federally sponsored clinical

trials are being conducted to determine therapeutic advantage.

SEC. 512. None of the funds made available in this Act may be

obligated or expended to enter into or renew a contract with an entity if—

(1) such entity is otherwise a contractor with the United

States and is subject to the requirement in section 4212(d) of

title 38, United States Code, regarding submission of an annual

report to the Secretary of Labor concerning employment of certain veterans; and

(2) such entity has not submitted a report as required by

that section for the most recent year for which such requirement

was applicable to such entity.

SEC. 513. (a) Section 403(a)(5)(H)(iii) of the Social Security Act

(42 U.S.C. 603(a)(5)(H)(iii)) is amended by striking ‘‘2001’’ and inserting ‘‘2005’’.

(b) Section 403(a)(5)(H) of such Act (42 U.S.C. 603(a)(5)(G)) is

amended by adding at the end the following:

‘‘(iv) INTERIM REPORT.—Not later than January 1,

2002, the Secretary shall submit to the Congress an interim report on the evaluations referred to in clause

(i).’’.

SEC. 514. None of the funds made available in this Act may be

used to promulgate or adopt any final standard under section

1173(b) of the Social Security Act (42 U.S.C. 1320d–2(b)) providing

for, or providing for the assignment of, a unique health identifier

for an individual (except in an individual’s capacity as an employer

or a health care provider), until legislation is enacted specifically

approving the standard.

SEC. 515. Section 410(b) of The Ticket to Work and Work Incentives Improvement Act of 1999 (Public Law 106–170) is amended by

striking ‘‘2009’’ both places it appears and inserting ‘‘2001’’.

SEC. 516. Part B of title III of the Public Health Services Act

(42 U.S.C. 243 et seq.) is amended by inserting before section 318

the following section:

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‘‘HUMAN PAPILLOMAVIRUS

‘‘SEC. 317P. (a) SURVEILLANCE.—

‘‘(1) IN GENERAL.—The Secretary, acting through the Centers for Disease Control and Prevention, shall—

‘‘(A) enter into cooperative agreements with States and

other entities to conduct sentinel surveillance or other special studies that would determine the prevalence in various

age groups and populations of specific types of human

papillomavirus (referred to in this section as ‘HPV’) in different sites in various regions of the United States, through

collection of special specimens for HPV using a variety of

laboratory-based testing and diagnostic tools; and

‘‘(B) develop and analyze data from the HPV sentinel

surveillance system described in subparagraph (A).

‘‘(2) REPORT.—The Secretary shall make a progress report

to the Congress with respect to paragraph (1) no later than one

year after the effective date of this section.

‘‘(b) PREVENTION ACTIVITIES; EDUCATION PROGRAM.—

‘‘(1) IN GENERAL.—The Secretary, acting through the Centers for Disease Control and Prevention, shall conduct prevention research on HPV, including—

‘‘(A) behavioral and other research on the impact of

HPV-related diagnosis on individuals;

‘‘(B) formative research to assist with the development

of educational messages and information for the public, for

patients, and for their partners about HPV;

‘‘(C) surveys of physician and public knowledge, attitudes, and practices about genital HPV infection; and

‘‘(D) upon the completion of and based on the findings

under subparagraphs (A) through (C), develop and disseminate educational materials for the public and health care

providers regarding HPV and its impact and prevention.

‘‘(2) REPORT; FINAL PROPOSAL.—The Secretary shall make a

progress report to the Congress with respect to paragraph (1)

not later than one year after the effective date of this section,

and shall develop a final report not later than three years after

such effective date, including a detailed summary of the significant findings and problems and the best strategies to prevent

future infections, based on available science.

‘‘(c) HPV EDUCATION AND PREVENTION.—

‘‘(1) IN GENERAL.—The Secretary shall prepare and distribute educational materials for health care providers and the

public that include information on HPV. Such materials shall

address—

‘‘(A) modes of transmission;

‘‘(B) consequences of infection, including the link between HPV and cervical cancer;

‘‘(C) the available scientific evidence on the effectiveness

or lack of effectiveness of condoms in preventing infection

with HPV; and

‘‘(D) the importance of regular Pap smears, and other

diagnostics for early intervention and prevention of cervical

cancer purposes in preventing cervical cancer.

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‘‘(2) MEDICALLY ACCURATE INFORMATION.—Educational material under paragraph (1), and all other relevant educational

and prevention materials prepared and printed from this date

forward for the public and health care providers by the Secretary (including materials prepared through the Food and

Drug Administration, the Centers for Disease Control and Prevention, and the Health Resources and Services Administration), or by contractors, grantees, or subgrantees thereof, that

are specifically designed to address STDs including HPV shall

contain medically accurate information regarding the effectiveness or lack of effectiveness of condoms in preventing the STD

the materials are designed to address. Such requirement only

applies to materials mass produced for the public and health

care providers, and not to routine communications.’’.

SEC. 4. LABELING OF CONDOMS.

The Secretary of Health and Human Services shall reexamine

existing condom labels that are authorized pursuant to the Federal

Food, Drug, and Cosmetic Act to determine whether the labels are

medically accurate regarding the overall effectiveness or lack of effectiveness of condoms in preventing sexually transmitted diseases,

including HPV.

SEC. 517. Section 403(o) of the Food, Drug, and Cosmetic Act

(21 U.S.C. 343(o)) is repealed. Subsections (c) and (d) of section 4

of the Saccharin Study and Labeling Act are repealed.

SEC. 518. (a) Title VIII of the Social Security Act is amended

by inserting after section 810 (42 U.S.C. 1010) the following new

section:

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

‘‘(a) IN GENERAL.—The Commissioner of Social Security may

enter into an agreement with any State (or political subdivision

thereof) that provides cash payments on a regular basis to individuals entitled to benefits under this title under which the Commissioner of Social Security shall make such payments on behalf of

such State (or subdivision).

‘‘(b) AGREEMENT TERMS.—

‘‘(1) IN GENERAL.—Such agreement shall include such

terms as the Commissioner of Social Security finds necessary to

achieve efficient and effective administration of both this title

and the State program.

‘‘(2) FINANCIAL TERMS.—Such agreement shall provide for

the State to pay the Commissioner of Social Security, at such

times and in such installments as the parties may specify—

‘‘(A) an amount equal to the expenditures made by the

Commissioner of Social Security pursuant to such agreement as payments to individuals on behalf of such State;

and

‘‘(B) an administration fee to reimburse the administrative expenses incurred by the Commissioner of Social Security in making payments to individuals on behalf of the

State.

‘‘(c) SPECIAL DISPOSITION OF ADMINISTRATION FEES.—Administration fees, upon collection, shall be credited to a special fund esVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00082 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.000 pfrm03 PsN: HR1033
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tablished in the Treasury of the United States for State recognition

payments for certain World War II veterans. The amounts so credited, to the extent and in the amounts provided in advance in appropriations Acts, shall be available to defray expenses incurred in carrying out this title.’’.

(b) CONFORMING AMENDMENTS.— (1) The Table of Contents of title VIII of the Social Security

Act is amended by inserting after ‘‘Sec. 810. Other administrative provisions.’’ the following:

‘‘Sec. 810A. Optional federal administration of State recognition payments.’’.

(2) Section 1129A(e) of the Social Security (42 U.S.C.

1320a–8a(e)) is amended—

(A) by inserting ‘‘VIII or’’ after ‘‘benefits under’’;

(B) by inserting ‘‘810A or’’ after ‘‘agreement under section’’;

(C) by inserting ‘‘1010A or’’ before ‘‘1382(e)(a)’’; and

(D) by inserting ‘‘, as the case may be’’ immediately before the period.

SEC. 519. (a) IN GENERAL.—Section 1612(a)(1) of the Social Security Act (42 U.S.C. 1382(a) is amended—

(1) in subparagraph (A), by inserting ‘‘but without the application of section 210(j)(3)’’ immediately before the semicolon;

and

(2) in subparagraph (B), by—

(A) striking ‘‘and the last’’ and inserting ‘‘the last’’, and

(B) inserting ‘‘, and section 210(j)(3)’’ after ‘‘subsection

(a)’’.

SEC. 520. Amounts made available under this Act for the administrative and related expenses for departmental management for

the Department of Labor, the Department of Health and Human

Services, and the Department of Education shall be reduced on a

pro rata basis by $25,000,000: Provided, That this provision shall

not apply to the Food and Drug Administration and the Indian

Health Service.

TITLE VI—ASSETS FOR INDEPENDENCE

SECTION 601. SHORT TITLE.

That this title may be cited as the ‘‘Assets for Independence Act

Amendments of 2000’’.

SEC. 602. MATCHING CONTRIBUTIONS UNAVAILABLE FOR EMERGENCY

WITHDRAWALS.

Section 404(5)(A)(v) of the Assets for Independence Act (42

U.S.C. 604 note) is amended by striking ‘‘, or enabling the eligible

individual to make an emergency withdrawal’’.

SEC. 603. ADDITIONAL QUALIFIED ENTITIES.

Section 404(7)(A) of the Assets for Independence Act (42 U.S.C.

604 note) is amended—

(1) in clause (i), by striking ‘‘or’’ at the end thereof;

(2) in clause (ii), by striking the period at the end and inserting ‘‘; or’’; and

(3) by adding at the end the following new clause:

‘‘(iii) an entity that—

‘‘(I) is—

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‘‘(aa) a credit union designated as a lowincome credit union by the National Credit

Union Administration (NCUA); or

‘‘(bb) an organization designated as a

community development financial institution

by the Secretary of the Treasury (or the Community Development Financial Institutions

Fund); and

‘‘(II) can demonstrate a collaborative relationship with a local community-based organization

whose activities are designed to address poverty in

the community and the needs of community members for economic independence and stability.’’.

SEC. 604. HOME PURCHASE COSTS.

Section 404(8)(B)(i) of the Assets for Independence Act (42

U.S.C. 604 note) is amended by striking ‘‘100’’ and inserting ‘‘120’’.

SEC. 605. INCREASED SET-ASIDE FOR ECONOMIC LITERACY TRAINING

AND ADMINISTRATIVE COSTS.

Section 407(c)(3) of the Assets for Independence Act (42 U.S.C.

604 note) is amended—

(1) by striking ‘‘9.5’’ and inserting ‘‘15’’; and

(2) by inserting after the first sentence the following: ‘‘Of

the total amount specified in this paragraph, not more than 7.5

percent shall be used for administrative functions under paragraph (1)(C), including program management, reporting requirements, recruitment and enrollment of individuals, and

monitoring. The remainder of the total amount specified in this

paragraph (not including the amount specified for use for the

purposes described in paragraph (1)(D)) shall be used for nonadministrative functions described in paragraph (1)(A), including case management, budgeting, economic literacy, and credit

counseling. If the cost of nonadministrative functions described

in paragraph (1)(A) is less than 5.5 percent of the total amount

specified in this paragraph, such excess funds may be used for

administrative functions.’’.

SEC. 606. ALTERNATIVE ELIGIBILITY CRITERIA.

Section 408(a)(1) of the Assets for Independence Act (42 U.S.C.

604 note) is amended by striking ‘‘does not exceed’’ and inserting ‘‘is

equal to or less than 200 percent of the poverty line (as determined

by the Office of Management and Budget) or’’.

SEC. 607. REVISED ANNUAL PROGRESS REPORT DEADLINE.

(a) IN GENERAL.—Section 412(c) of the Assets for Independence

Act (42 U.S.C. 604 note) is amended by striking ‘‘calendar’’ and inserting ‘‘project’’.

(b) TRANSITIONAL DEADLINE.—Notwithstanding the amendment

made by subsection (a), the submission of the initial report of a

qualified entity under section 412(c) shall not be required prior to

the date that is 90 days after the date of enactment of this title.

SEC. 608. REVISED INTERIM EVALUATION REPORT DEADLINE.

(a) IN GENERAL.—Section 414(d)(1) of the Assets for Independence Act (42 U.S.C. 604 note) is amended by striking ‘‘calendar’’ and

inserting ‘‘project’’.

81

(b) TRANSITIONAL DEADLINE.—Notwithstanding the amendment

made by subsection (a), the submission of the initial interim report

of the Secretary under section 412(c) shall not be required prior to

the date that is 90 days after the date of enactment of this title.

SEC. 609. INCREASED APPROPRIATIONS FOR EVALUATION EXPENSES.

Subsection (e) of section 414 of the Assets for Independence Act

(42 U.S.C. 604 note) is amended to read as follows:

‘‘(e) EVALUATION EXPENSES.—Of the amount appropriated

under section 416 for a fiscal year, the Secretary may expend not

more than $500,000 for such fiscal year to carry out the objectives

of this section.’’.

SEC. 610. NO REDUCTION IN BENEFITS.

Section 415 of the Assets for Independence Act (42 U.S.C. 604

note) is amended to read as follows:

‘‘SEC. 415. NO REDUCTION IN BENEFITS.

‘‘Notwithstanding any other provision of Federal law (other

than the Internal Revenue Code of 1986) that requires consideration

of 1 or more financial circumstances of an individual, for the purpose of determining eligibility to receive, or the amount of, any assistance or benefit authorized by such law to be provided to or for

the benefit of such individual, funds (including interest accruing) in

an individual development account under this Act shall be disregarded for such purpose with respect to any period during which

such individual maintains or makes contributions into such an account.’’.

TITLE VII—PHYSICAL EDUCATION FOR PROGRESS ACT

SEC. 701. PHYSICAL EDUCATION FOR PROGRESS. Title X of the

Elementary and Secondary Education Act of 1965 (20 U.S.C. 8001

et seq.) is amended by adding at the end the following:

‘‘PART L—PHYSICAL EDUCATION FOR

PROGRESS

‘‘SEC. 10999A. SHORT TITLE.

‘‘This part may be cited as the ‘Physical Education for Progress

Act’.

‘‘SEC. 10999B. PURPOSE.

‘‘The purpose of this part is to award grants and contracts to

local educational agencies to enable the local educational agencies

to initiate, expand and improve physical education programs for all

kindergarten through 12th grade students.

‘‘SEC. 10999C. FINDINGS.

‘‘Congress makes the following findings:

‘‘(1) Physical education is essential to the development of

growing children.

‘‘(2) Physical education helps improve the overall health of

children by improving their cardiovascular endurance, muscular strength and power, and flexibility, and by enhancing

weight regulation, bone development, posture, skillful moving,

active lifestyle habits, and constructive use of leisure time.

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‘‘(3) Physical education helps improve the self esteem, interpersonal relationships, responsible behavior, and independence

of children.

‘‘(4) Children who participate in high quality daily physical

education programs tend to be more healthy and physically fit.

‘‘(5) The percentage of young people who are overweight has

more than doubled in the 30 years preceding 1999.

‘‘(6) Low levels of activity contribute to the high prevalence

of obesity among children in the United States.

‘‘(7) Obesity related diseases cost the United States economy

more than $100,000,000,000 every year.

‘‘(8) Inactivity and poor diet cause at least 300,000 deaths

a year in the United States.

‘‘(9) Physically fit adults have significantly reduced risk

factors for heart attacks and stroke.

‘‘(10) Children are not as active as they should be and

fewer than 1 in 4 children get 20 minutes of vigorous activity

every day of the week.

‘‘(11) The Surgeon General’s 1996 Report on Physical Activity and Health, and the Centers for Disease Control and Prevention, recommend daily physical education for all students in

kindergarten through grade 12.

‘‘(12) Twelve years after Congress passed House Concurrent

Resolution 97, 100th Congress, agreed to December 11, 1987,

encouraging State and local governments and local educational

agencies to provide high quality daily physical education programs for all children in kindergarten through grade 12, little

progress has been made.

‘‘(13) Every student in our Nation’s schools, from kindergarten through grade 12, should have the opportunity to participate in quality physical education. It is the unique role of

quality physical education programs to develop the health-related fitness, physical competence, and cognitive understanding

about physical activity for all students so that the students can

adopt healthy and physically active lifestyles.

‘‘SEC. 10999D. PROGRAM AUTHORIZED.

‘‘The Secretary is authorized to award grants to, and enter into

contracts with, local educational agencies to pay the Federal share

of the costs of initiating, expanding, and improving physical education programs for kindergarten through grade 12 students by—

‘‘(1) providing equipment and support to enable students to

actively participate in physical education activities; and

‘‘(2) providing funds for staff and teacher training and education.

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

‘‘(a) APPLICATIONS.—Each local educational agency desiring a

grant or contract under this part shall submit to the Secretary an

application that contains a plan to initiate, expand, or improve

physical education programs in the schools served by the agency in

order to make progress toward meeting State standards for physical

education.

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‘‘(b) PROGRAM ELEMENTS.—A physical education program described in any application submitted under subsection (a) may

provide—

‘‘(1) fitness education and assessment to help children understand, improve, or maintain their physical well-being;

‘‘(2) instruction in a variety of motor skills and physical activities designed to enhance the physical, mental, and social or

emotional development of every child;

‘‘(3) development of cognitive concepts about motor skill and

physical fitness that support a lifelong healthy lifestyle;

‘‘(4) opportunities to develop positive social and cooperative

skills through physical activity participation;

‘‘(5) instruction in healthy eating habits and good nutrition;

and

‘‘(6) teachers of physical education the opportunity for professional development to stay abreast of the latest research,

issues, and trends in the field of physical education.

‘‘(c) SPECIAL RULE.—For the purpose of this part, extracurricular activities such as team sports and Reserve Officers’

Training Corps (ROTC) program activities shall not be considered

as part of the curriculum of a physical education program assisted

under this part.

‘‘SEC. 10999F. PROPORTIONALITY.

‘‘The Secretary shall ensure that grants awarded and contracts

entered into under this part shall be equitably distributed between

local educational agencies serving urban and rural areas, and between local educational agencies serving large and small numbers

of students.

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

STUDENTS.

‘‘An application for funds under this part may provide for the

participation, in the activities funded under this part, of—

‘‘(1) homeschooled children, and their parents and teachers;

or

‘‘(2) children enrolled in private nonprofit elementary

schools or secondary schools, and their parents and teachers.

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

‘‘As a condition to continue to receive grant or contract funding

after the first year of a multiyear grant or contract under this part,

the administrator of the grant or contract for the local educational

agency shall submit to the Secretary an annual report that describes

the activities conducted during the preceding year and demonstrates

that progress has been made toward meeting State standards for

physical education.

‘‘SEC. 10999I. REPORT TO CONGRESS.

‘‘The Secretary shall submit a report to Congress not later than

June 1, 2003, that describes the programs assisted under this part,

documents the success of such programs in improving physical fitness, and makes such recommendations as the Secretary determines

appropriate for the continuation and improvement of the programs

assisted under this part.

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‘‘SEC. 10999J. ADMINISTRATIVE COSTS.

‘‘Not more than 5 percent of the grant or contract funds made

available to a local educational agency under this part for any fiscal

year may be used for administrative costs.

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

‘‘(a) FEDERAL SHARE.—The Federal share under this part may

not exceed—

‘‘(1) 90 percent of the total cost of a project for the first year

for which the project receives assistance under this part; and

‘‘(2) 75 percent of such cost for the second and each subsequent such year.

‘‘(b) SUPPLEMENT NOT SUPPLANT.—Funds made available

under this part shall be used to supplement and not supplant other

Federal, State and local funds available for physical education activities.

‘‘SEC. 10999L. AUTHORIZATION OF APPROPRIATIONS.

‘‘There are authorized to be appropriated $30,000,000 for fiscal

year 2001, $70,000,000 for fiscal year 2002, and $100,000,000 for

each of the fiscal years 2003 through 2005, to carry out this part.

Such funds shall remain available until expended.’’.

TITLE VIII—EARLY LEARNING OPPORTUNITIES

SEC. 801. SHORT TITLE; FINDINGS.

(a) SHORT TITLE.—This title may be cited as the ‘‘Early Learning Opportunities Act’’.

(b) FINDINGS.—Congress finds that—

(1) medical research demonstrates that adequate stimulation of a young child’s brain between birth and age 5 is critical

to the physical development of the young child’s brain;

(2) parents are the most significant and effective teachers of

their children, and they alone are responsible for choosing the

best early learning opportunities for their child;

(3) parent education and parent involvement are critical to

the success of any early learning program or activity;

(4) the more intensively parents are involved in their child’s

early learning, the greater the cognitive and noncognitive benefits to their children;

(5) many parents have difficulty finding the information

and support the parents seek to help their children grow to their

full potential;

(6) each day approximately 13,000,000 young children, including 6,000,000 infants or toddlers, spend some or all of their

day being cared for by someone other than their parents;

(7) quality early learning programs, including those designed to promote effective parenting, can increase the literacy

rate, the secondary school graduation rate, the employment

rate, and the college enrollment rate for children who have participated in voluntary early learning programs and activities;

(8) early childhood interventions can yield substantial advantages to participants in terms of emotional and cognitive development, education, economic well-being, and health, with the

latter 2 advantages applying to the children’s families as well;

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(9) participation in quality early learning programs, including those designed to promote effective parenting, can decrease the future incidence of teenage pregnancy, welfare dependency, at-risk behaviors, and juvenile delinquency for children;

(10) several cost-benefit analysis studies indicate that for

each $1 invested in quality early learning programs, the Federal Government can save over $5 by reducing the number of

children and families who participate in Federal Government

programs like special education and welfare;

(11) for children placed in the care of others during the

workday, the low salaries paid to the child care staff, the lack

of career progression for the staff, and the lack of child development specialists involved in early learning and child care programs, make it difficult to attract and retain the quality of staff

necessary for a positive early learning experience;

(12) Federal Government support for early learning has primarily focused on out-of-home care programs like those established under the Head Start Act, the Child Care and Development Block Grant of 1990, and part C of the Individuals with

Disabilities Education Act, and these programs—

(A) serve far fewer than half of all eligible children;

(B) are not primarily designed to provide support for

parents who care for their young children in the home; and

(C) lack a means of coordinating early learning opportunities in each community; and

(13) by helping communities increase, expand, and better

coordinate early learning opportunities for children and their

families, the productivity and creativity of future generations

will be improved, and the Nation will be prepared for continued

leadership in the 21st century.

SEC. 802. PURPOSES.

The purposes of this title are—

(1) to increase the availability of voluntary programs, services, and activities that support early childhood development,

increase parent effectiveness, and promote the learning readiness of young children so that young children enter school ready

to learn;

(2) to support parents, child care providers, and caregivers

who want to incorporate early learning activities into the daily

lives of young children;

(3) to remove barriers to the provision of an accessible system of early childhood learning programs in communities

throughout the United States;

(4) to increase the availability and affordability of professional development activities and compensation for caregivers

and child care providers; and

(5) to facilitate the development of community-based systems of collaborative service delivery models characterized by

resource sharing, linkages between appropriate supports, and

local planning for services.

SEC. 803. DEFINITIONS.

In this title:

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(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;

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(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.

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SEC. 807. PROGRAM AUTHORIZED.

(a) GRANTS.—From amounts appropriated under section 805

the Secretary shall award grants to States to enable the States to

award grants to Local Councils to pay the Federal share of the cost

of carrying out early learning programs in the locality served by the

Local Council.

(b) FEDERAL SHARE.— (1) IN GENERAL.—The Federal share of the cost described in

subsections (a) and (e) shall be 85 percent for the first and second years of the grant, 80 percent for the third and fourth years

of the grant, and 75 percent for the fifth and subsequent years

of the grant.

(2) NON-FEDERAL SHARE.—The non-Federal share of the

cost described in subsections (a) and (e) may be contributed in

cash or in kind, fairly evaluated, including facilities, equipment, or services, which may be provided from State or local

public sources, or through donations from private entities. For

the purposes of this paragraph the term ‘‘facilities’’ includes the

use of facilities, but the term ‘‘equipment’’ means donated equipment and not the use of equipment.

(c) MAINTENANCE OF EFFORT.—The Secretary shall not award

a grant under this title to any State unless the Secretary first determines that the total expenditures by the State and its political subdivisions to support early learning programs (other than funds used

to pay the non-Federal share under subsection (b)(2)) for the fiscal

year for which the determination is made is equal to or greater than

such expenditures for the preceding fiscal year.

(d) SUPPLEMENT NOT SUPPLANT.—Amounts received under this

title shall be used to supplement and not supplant other Federal,

State, and local public funds expended to promote early learning.

(e) SPECIAL RULE.—If funds appropriated to carry out this title

are less than $150,000,000 for any fiscal year, the Secretary shall

award grants for the fiscal year directly to Local Councils, on a

competitive basis, to pay the Federal share of the cost of carrying

out early learning programs in the locality served by the Local

Council. In carrying out the preceding sentence—

(1) subsection (c), subsections (b) and (c) of section 810, and

paragraphs (1), (2), and (3) of section 811(a) shall not apply;

(2) State responsibilities described in section 811(d) shall

be carried out by the Local Council with regard to the locality;

(3) the Secretary shall provide such technical assistance

and monitoring as necessary to ensure that the use of the funds

by Local Councils and the distribution of the funds to Local

Councils are consistent with this title; and

(4) subject to paragraph (1), the Secretary shall assume the

responsibilities of the Lead State Agency under this title, as appropriate.

SEC. 808. USES OF FUNDS.

(a) IN GENERAL.—Subject to section 810, grant funds under this

title shall be used to pay for developing, operating, or enhancing

voluntary early learning programs that are likely to produce sustained gains in early learning.

(b) LIMITED USES.—Subject to section 810, Lead State Agencies

and Local Councils shall ensure that funds made available under

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this title to the agencies and Local Councils are used for 3 or more

of the following activities:

(1) Helping parents, caregivers, child care providers, and

educators increase their capacity to facilitate the development of

cognitive, language comprehension, expressive language, socialemotional, 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—

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(1) 0.5 percent shall be available to Indian tribes; and

(2) 0.5 percent shall be available to Regional Corporations

and Native Hawaiian entities.

(b) ALLOTMENTS.—From the funds appropriated under this title

for each fiscal year that are not reserved under subsection (a), the

Secretary shall allot to each State the sum of—

(1) an amount that bears the same ratio to 50 percent of

such funds as the number of children 4 years of age and younger in the State bears to the number of such children in all

States; and

(2) an amount that bears the same ratio to 50 percent of

such funds as the number of children 4 years of age and younger living in families with incomes below the poverty line in the

State bears to the number of such children in all States.

(c) MINIMUM ALLOTMENT.—No State shall receive an allotment

under subsection (b) for a fiscal year in an amount that is less than

.40 percent of the total amount appropriated for the fiscal year

under this title.

(d) AVAILABILITY OF FUNDS.—Any portion of the allotment to a

State that is not expended for activities under this title in the fiscal

year for which the allotment is made shall remain available to the

State for 2 additional years, after which any unexpended funds

shall be returned to the Secretary. The Secretary shall use the returned funds to carry out a discretionary grant program for research-based early learning demonstration projects.

(e) DATA.—The Secretary shall make allotments under this title

on the basis of the most recent data available to the Secretary.

SEC. 810. GRANT ADMINISTRATION.

(a) FEDERAL ADMINISTRATIVE COSTS.—The Secretary may use

not more than 3 percent of the amount appropriated under section

805 for a fiscal year to pay for the administrative costs of carrying

out this title, including the monitoring and evaluation of State and

local efforts.

(b) STATE ADMINISTRATIVE COSTS.—A State that receives a

grant under this title may use—

(1) not more than 2 percent of the funds made available

through the grant to carry out activities designed to coordinate

early learning programs on the State level, including programs

funded or operated by the State educational agency, health,

children and family, and human service agencies, and any

State-level collaboration or coordination council involving early

learning and education, such as the entities funded under section 640(a)(5) of the Head Start Act (42 U.S.C. 9835 (a)(5));

(2) not more than 2 percent of the funds made available

through the grant for the administrative costs of carrying out

the grant program and the costs of reporting State and local efforts to the Secretary; and

(3) not more than 3 percent of the funds made available

through the grant for training, technical assistance, and wage

incentives provided by the State to Local Councils.

(c) LEAD STATE AGENCY.—

(1) IN GENERAL.—To be eligible to receive an allotment

under this title, the Governor of a State shall appoint, after consultation with the leadership of the State legislature, a Lead

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State Agency to carry out the functions described in paragraph

(2).

(2) LEAD STATE AGENCY.—

(A) ALLOCATION OF FUNDS.—The Lead State Agency

described in paragraph (1) shall allocate funds to Local

Councils as described in section 812.

(B) FUNCTIONS OF AGENCY.—In addition to allocating

funds pursuant to subparagraph (A), the Lead State Agency shall—

(i) advise and assist Local Councils in the performance of their duties under this title;

(ii) develop and submit the State application;

(iii) evaluate and approve applications submitted

by Local Councils under section 813;

(iv) ensure collaboration with respect to assistance

provided under this title between the State agency responsible for education and the State agency responsible for children and family services;

(v) prepare and submit to the Secretary, an annual

report on the activities carried out in the State under

this title, which shall include a statement describing

how all funds received under this title are expended

and documentation of the effects that resources under

this title have had on—

(I) parental capacity to improve learning readiness in their young children;

(II) early childhood literacy;

(III) linkages among early learning programs;

(IV) linkages between early learning programs

and health care services for young children;

(V) access to early learning activities for young

children with special needs;

(VI) access to existing early learning programs

through expansion of the days or times that children are served;

(VII) access to existing early learning programs through expansion of the number of young

children served;

(VIII) access to and affordability of existing

early learning programs for low-income families;

(IX) the quality of early learning programs resulting from professional development, and recruitment and retention incentives for caregivers; and

(X) removal of ancillary barriers to early

learning, including transportation difficulties and

absence of programs during nontraditional work

times; and

(vi) ensure that training and research is made

available to Local Councils and that such training and

research reflects the latest available brain development

and early childhood development research related to

early learning.

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SEC. 811. STATE REQUIREMENTS.

(a) ELIGIBILITY.—To be eligible for a grant under this title, a

State shall—

(1) ensure that funds received by the State under this title

shall be subject to appropriation by the State legislature, consistent with the terms and conditions required under State law;

(2) designate a Lead State Agency under section 810(c) to

administer and monitor the grant and ensure State-level coordination of early learning programs;

(3) submit to the Secretary an application at such time, in

such manner, and accompanied by such information as the Secretary may require;

(4) ensure that funds made available under this title are

distributed on a competitive basis throughout the State to Local

Councils serving rural, urban, and suburban areas of the State;

and

(5) assist the Secretary in developing mechanisms to ensure

that Local Councils receiving funds under this title comply with

the requirements of this title.

(b) STATE PREFERENCE.—In awarding grants to Local Councils

under this title, the State, to the maximum extent possible, shall ensure that a broad variety of early learning programs that provide

a continuity of services across the age spectrum assisted under this

title are funded under this title, and shall give preference to

supporting—

(1) a Local Council that meets criteria, that are specified by

the State and approved by the Secretary, for qualifying as serving an area of greatest need for early learning programs; and

(2) a Local Council that demonstrates, in the application

submitted under section 813, the Local Council’s potential to increase collaboration as a means of maximizing use of resources

provided under this title with other resources available for early

learning programs.

(c) LOCAL PREFERENCE.—In awarding grants under this title,

Local Councils shall give preference to supporting—

(1) projects that demonstrate their potential to collaborate

as a means of maximizing use of resources provided under this

title with other resources available for early learning programs;

(2) programs that provide a continuity of services for young

children across the age spectrum, individually, or through community-based networks or cooperative agreements; and

(3) programs that help parents and other caregivers promote early learning with their young children.

(d) PERFORMANCE GOALS.—

(1) ASSESSMENTS.—Based on information and data received from Local Councils, and information and data available through State resources, the State shall biennially assess

the needs and available resources related to the provision of

early learning programs within the State.

(2) PERFORMANCE GOALS.—Based on the analysis of information described in paragraph (1), the State shall establish

measurable performance goals to be achieved through activities

assisted under this title.

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(3) REQUIREMENT.—The State shall award grants to Local

Councils only for purposes that are consistent with the performance goals established under paragraph (2).

(4) REPORT.—The State shall report to the Secretary annually regarding the State’s progress toward achieving the performance goals established in paragraph (2) and any necessary

modifications to those goals, including the rationale for the

modifications.

(5) IMPROVEMENT PLANS.—If the Secretary determines,

based on the State report submitted under paragraph (4), that

the State is not making progress toward achieving the performance goals described in paragraph (2), then the State shall submit a performance improvement plan to the Secretary, and

demonstrate reasonable progress in implementing such plan, in

order to remain eligible for funding under this title.

SEC. 812. LOCAL ALLOCATIONS.

(a) IN GENERAL.—The Lead State Agency shall allocate to Local

Councils in the State not less than 93 percent of the funds provided

to the State under this title for a fiscal year.

(b) LIMITATION.—The Lead State Agency shall allocate funds

provided under this title on the basis of the population of the locality served by the Local Council.

SEC. 813. LOCAL APPLICATIONS.

(a) IN GENERAL.—To be eligible to receive assistance under this

title, the Local Council shall submit an application to the Lead

State Agency at such time, in such manner, and containing such information as the Lead State Agency may require.

(b) CONTENTS.—Each application submitted pursuant to subsection (a) shall include a statement ensuring that the local government entity, Indian tribe, Regional Corporation, or Native Hawaiian entity has established or designated a Local Council under section 814, and the Local Council has developed a local plan for carrying out early learning programs under this title that includes—

(1) a needs and resources assessment concerning early

learning services and a statement describing how early learning

programs will be funded consistent with the assessment;

(2) a statement of how the Local Council will ensure that

early learning programs will meet the performance goals reported by the Lead State Agency under this title; and

(3) a description of how the Local Council will form

collaboratives among local youth, social service, and educational providers to maximize resources and concentrate efforts

on areas of greatest need.

SEC. 814. LOCAL ADMINISTRATION.

(a) LOCAL COUNCIL.—

(1) IN GENERAL.—To be eligible to receive funds under this

title, a local government entity, Indian tribe, Regional Corporation, or Native Hawaiian entity, as appropriate, shall establish

or designate a Local Council, which shall be composed of—

(A) representatives of local agencies directly affected by

early learning programs assisted under this title;

(B) parents;

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(C) other individuals concerned with early learning

issues in the locality, such as representative entities providing elementary education, child care resource and referral services, early learning opportunities, child care, and

health services; and

(D) other key community leaders.

(2) DESIGNATING EXISTING ENTITY.—If a local government

entity, Indian tribe, Regional Corporation, or Native Hawaiian

entity has, before the date of enactment of the Early Learning

Opportunities Act, a Local Council or a regional entity that is

comparable to the Local Council described in paragraph (1), the

entity, tribe or corporation may designate the council or entity

as a Local Council under this title, and shall be considered to

have established a Local Council in compliance with this subsection.

(3) FUNCTIONS.—The Local Council shall be responsible for

preparing and submitting the application described in section

813.

(b) ADMINISTRATION.— (1) ADMINISTRATIVE COSTS.—Not more than 3 percent of the

funds received by a Local Council under this title shall be used

to pay for the administrative costs of the Local Council in carrying out this title.

(2) FISCAL AGENT.—A Local Council may designate any entity, with a demonstrated capacity for administering grants,

that is affected by, or concerned with, early learning issues, including the State, to serve as fiscal agent for the administration

of grant funds received by the Local Council under this title.

TITLE IX—RURAL EDUCATION ACHIEVEMENT PROGRAM

SEC. 901. RURAL EDUCATION INITIATIVE.

Subpart 2 of part J of title X of the Elementary and Secondary

Education Act of 1965 (20 U.S.C. 8291 et seq.) is amended to read

as follows:

‘‘Subpart 2—Rural Education Initiative

‘‘SEC. 10971. SHORT TITLE.

‘‘This subpart may be cited as the ‘Rural Education Achievement Program’.

‘‘SEC. 10972. PURPOSE.

‘‘It is the purpose of this subpart to address the unique needs

of rural school districts that frequently—

‘‘(1) lack the personnel and resources needed to compete for

Federal competitive grants; and

‘‘(2) receive formula allocations in amounts too small to be

effective in meeting their intended purposes.

‘‘SEC. 10973. AUTHORIZATION OF APPROPRIATIONS.

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

‘‘SEC. 10974. FORMULA GRANT PROGRAM AUTHORIZED.

‘‘(a) ALTERNATIVE USES.—

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‘‘(1) IN GENERAL.—Notwithstanding any other provision of

law, an eligible local educational agency may use the applicable

funding, that the agency is eligible to receive from the State

educational agency for a fiscal year, to carry out local activities

authorized in part A of title I, section 2210(b), section 3134, or

section 4116.

‘‘(2) NOTIFICATION.—An eligible local educational agency

shall notify the State educational agency of the local educational agency’s intention to use the applicable funding in accordance with paragraph (1) not later than a date that is established by the State educational agency for the notification.

‘‘(b) ELIGIBILITY.—A local educational agency shall be eligible to

use the applicable funding in accordance with subsection (a) if—

‘‘(1) the total number of students in average daily attendance at all of the schools served by the local educational agency

is less than 600; and

‘‘(2) all of the schools served by the local educational agency

are designated with a School Locale Code of 7 or 8, as determined by the Secretary of Education.

‘‘(c) APPLICABLE FUNDING.—In this section, the term ‘applicable

funding’ means funds provided under each of titles II, IV, and VI,

except for funds made available under section 321 of the Department of Education Appropriations Act, 2001.

‘‘(d) DISBURSAL.—Each State educational agency that receives

applicable funding for a fiscal year shall disburse the applicable

funding to local educational agencies for alternative uses under this

section for the fiscal year at the same time that the State educational agency disburses the applicable funding to local educational agencies that do not intend to use the applicable funding

for such alternative uses for the fiscal year.

‘‘(e) SUPPLEMENT NOT SUPPLANT.—Funds made available

under this section shall be used to supplement and not supplant any

other State or local education funds.

‘‘(f) SPECIAL RULE.—References in Federal law to funds for the

provisions of law set forth in subsection (c) may be considered to be

references to funds for this section.

‘‘(g) CONSTRUCTION.—Nothing in this subpart shall be construed to prohibit a local educational agency that enters into cooperative arrangements with other local educational agencies for the

provision of special, compensatory, or other education services pursuant to State law or a written agreement from entering into similar arrangements for the use or the coordination of the use of the

funds made available under this subpart.

‘‘SEC. 10975. COMPETITIVE GRANT PROGRAM AUTHORIZED.

‘‘(a) IN GENERAL.—The Secretary is authorized to award grants

to eligible local educational agencies to enable the local educational

agencies to carry out local activities authorized in part A of title I,

section 2210(b), section 3134, or section 4116.

‘‘(b) ELIGIBILITY.—A local educational agency shall be eligible to

receive a grant under this section if—

‘‘(1) the total number of students in average daily attendance at all of the schools served by the local educational agency

is less than 600; and

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‘‘(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 para- graph (1) is equal to $100 multiplied by the total number of students in excess of 50 students that are in average daily attendance at the schools served by the local educational agency, plus

$20,000, except that the amount may not exceed $60,000.

‘‘(3) CENSUS DETERMINATION.— ‘‘(A) IN GENERAL.—Each local educational agency desiring a grant under this section shall determine for each

year the number of kindergarten through grade 12 students

in average daily attendance at the schools served by the

local educational agency during the period beginning or the

first day of classes and ending on December 1.

‘‘(B) SUBMISSION.—Each local educational agency shall

submit the number described in subparagraph (A) to the

Secretary not later than March 1 of each year.

‘‘(4) PENALTY.—If the Secretary determines that a local educational agency has knowingly submitted false information

under paragraph (3) for the purpose of gaining additional

funds under this section, then the local educational agency

shall be fined an amount equal to twice the difference between

the amount the local educational agency received under this

section, and the correct amount the local educational agency

would have received under this section if the agency had submitted accurate information under paragraph (3).

‘‘(d) DISBURSAL.—The Secretary shall disburse the funds

awarded to a local educational agency under this section for a fiscal

year not later than July 1 of that year.

‘‘(e) SUPPLEMENT NOT SUPPLANT.—Funds made available

under this section shall be used to supplement and not supplant any

other State or local education funds.

‘‘SEC. 10976. ACCOUNTABILITY.

‘‘(a) ACADEMIC ACHIEVEMENT.—

‘‘(1) IN GENERAL.—Each local educational agency that uses

or receives funds under section 10974 or 10975 for a fiscal year

shall—

‘‘(A) administer an assessment that is used statewide

and is consistent with the assessment described in section

1111(b), to assess the academic achievement of students in

the schools served by the local educational agency; or

‘‘(B) in the case of a local educational agency for which

there is no statewide assessment described in subparagraph

(A), administer a test, that is selected by the local educational agency, to assess the academic achievement of students in the schools served by the local educational agency.

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‘‘(2) SPECIAL RULE.—Each local educational agency that

uses or receives funds under section 10974 or 10975 shall use

the same assessment or test described in paragraph (1) for each

year of participation in the program carried out under such section.

‘‘(b) STATE EDUCATIONAL AGENCY DETERMINATION REGARDING

CONTINUING PARTICIPATION.—Each State educational agency that

receives funding under the provisions of law described in section

10974(c) shall—

‘‘(1) after the third year that a local educational agency in

the State participates in a program authorized under section

10974 or 10975 and on the basis of the results of the assessments or tests described in subsection (a), determine whether

the students served by the local educational agency participating in the program performed better on the assessments or

tests after the third year of the participation than the students

performed on the assessments or tests after the first year of the

participation;

‘‘(2) permit only the local educational agencies that participated in the program and served students that performed better

on the assessments or tests, as described in paragraph (1), to

continue to participate in the program for an additional period

of 3 years; and

‘‘(3) prohibit the local educational agencies that participated in the program and served students that did not perform

better on the assessments or tests, as described in paragraph

(1), from participating in the program, for a period of 3 years

from the date of the determination.

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

‘‘(a) IN GENERAL.—If the amount appropriated for any fiscal

year and made available for grants under this subpart is insufficient to pay the full amount for which all agencies are eligible

under this subpart, the Secretary shall ratably reduce each such

amount.

‘‘(b) ADDITIONAL AMOUNTS.—If additional funds become available for making payments under paragraph (1) for such fiscal year,

payments that were reduced under subsection (a) shall be increased

on the same basis as such payments were reduced.

‘‘SEC. 10978. APPLICABILITY.

‘‘Sections 10951 and 10952 shall not apply to this subpart.’’.

This Act may be cited as the ‘‘Departments of Labor, Health

and Human Services, and Education, and Related Agencies Appropriations Act, 2001’’.

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

Following is explanatory language on H.R. 5656, as introduced

on December 14, 2000.

The conferees on H.R. 4577 agree with the matter included in

H.R. 5656 and enacted in this conference report by reference and

the following description. This bill was developed through negotiaVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00101 Fmt 6601 Sfmt 6601 E:\HR\OC\HR1033.000 pfrm03 PsN: HR1033
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tions by the conferees on the differences in H.R. 4577. References

in the following description to the ‘‘conference agreement’’ mean the

matter included in the introduced bill enacted by this conference

report. References to the House bill mean the House passed H.R.

4577. References to the Senate bill or to the Senate amendment

mean the Senate passed version of H.R. 4577.

In implementing this agreement, the Departments and agencies should comply with the language and instructions set forth in

House Report 106–645 and Senate Report 106–293.

In the case where the language and instructions specifically

address the allocation of funds, the Departments and agencies are

to follow the funding levels specified in the Congressional budget

justifications accompanying the fiscal year 2001 budget or the underlying authorizing statute and should give full consideration to

all items, including items allocating specific funding included in the

House and Senate reports. With respect to the provisions in the

House and Senate reports that specifically allocate funds each has

been reviewed and those that are jointly concurred in have been included in this joint statement.

The conferees specifically endorse the provisions of the House

Report 105–205 directing ‘‘* * * the Departments of Labor, Health

and Human Services, and Education and the Social Security Administration and the Railroad Retirement Board to submit operating plans with respect to discretionary appropriations to the

House and Senate Committees on Appropriations. These plans,

which are to be submitted within 30 days of the final passage of

the bill, must be signed by the respective Departmental Secretaries, the Social Security Commissioner and the Chairman of the

Railroad Retirement Board.’’

The conferees expect the Departments and agencies covered by

this directive to meet with the House and Senate Committees as

soon as possible after enactment of the bill to develop a methodology to assure adequate and timely information on the allocation

of funds within accounts within this conference report while minimizing the need for unnecessary and duplicative submissions.

The Departments of Labor, Health and Human Services, and

Education, and Related Agencies Appropriations Act, 2001, put in

place by this bill, incorporates the following agreements of the

managers:

TITLE I—DEPARTMENT OF LABOR

EMPLOYMENT AND TRAINING ADMINISTRATION

TRAINING AND EMPLOYMENT SERVICES

The conference agreement includes $5,670,805,000 for training

and employment services instead of $5,015,495,000 as proposed by

the House and $5,453,141,000 as proposed by the Senate. Of the

amount appropriated, $2,463,000,000 is an advance appropriation

for fiscal year 2002. The conference agreement includes

$1,400,000,000, which is the House level for Job Corps, but eliminates the October 1, 2000 availability of funds for hiring Business

and Community Liaisons. The conference agreement includes

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$15,000,000 for this purpose, but the funds are made available on

July 1, 2001, the normal funding cycle for Job Corps operations. The conference agreement includes $586,487 made available

for Job Corps operating expenses to be paid to the city of

Vergennes, Vermont in settlement of the city’s claim. The conference agreement includes $1,590,040,000 for the Dislocated Worker program, as a step toward providing all dislocated

workers who want and need assistance the resources to train for

or find new jobs. The conference agreement includes $1,102,965,000 for Youth

Activities. This increase will allow local communities to address the

reduction in the number of youth served in this year’s summer jobs

program resulting from a shift to comprehensive services, to establish new local youth councils, and to implement other reforms to

youth training activities and services, all required under the Workforce Investment Act.

At the time the conferees acted on this bill, an increase in the

minimum wage had not yet been enacted by Congress. If Congress

enacts an increase in the minimum wage prior to the beginning of

program year 2001, which begins April 1, 2001 for the youth activities grants, the conferees expect the Administration to submit a

supplemental request for the 2001 youth program as part of its fiscal year 2002 budget request. The conferees intend that the number of program participants to be served will not be decreased as

a result of any minimum wage increase. The conference agreement includes $275,000,000 to expand to

more communities the Youth Opportunity Grants aimed at increasing the long-term employment of youth who live in empowerment

zones, enterprise communities, and other high-poverty areas. The conference agreement includes $55,000,000 for the Responsible Reintegration for Young Offenders initiative to address youth

offender issues. This new initiative involving DOL, HHS, and DOJ,

will build on work begun earlier.

The conference agreement includes language authorizing the

use of funds under the dislocated workers program for projects that

provide assistance to new entrants in the workforce and incumbent

workers as proposed by the Senate. The conference agreement also

includes language to waive a 10 percent limitation in the Workforce Investment Act with respect to the use of discretionary funds

to carry out demonstration and pilot projects, multi-service projects

and multi-state projects with regard to dislocated workers and to

waive certain other provisions in that Act. The language is similar

to that in the Senate bill. The House bill contained no similar provisions.

The conference agreement includes a citation to the Women in

Apprenticeship and Nontraditional Occupations Act as proposed by

the House. The Senate bill did not cite this Act.

The conferees direct the Department, within the funds appropriated for fiscal year 2000 for National Emergency Grants within

the Dislocated Worker program, to respond to an anticipated request by the State of Wisconsin for emergency funds to address layoffs in the community of Wisconsin Rapids.

The conferees direct the Department, within the funds appropriated for FY 2000 for National Emergency Grants within the DisVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00103 Fmt 6601 Sfmt 6601 E:\HR\OC\HR1033.000 pfrm03 PsN: HR1033
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located Worker program, to provide in response to an anticipated

request by the State of North Carolina for $175,000 in emergency

funds to address major layoffs in the community of Gaston County.

With respect to the projects listed below for both the Dislocated

Worker program and the Pilots and Demonstrations authority, the

conferees acknowledge changes under the Workforce Investment

Act to develop and implement techniques and approaches, and

demonstrate the effectiveness of specialized methods of addressing

the employment and training needs of individuals. The conferees

encourage the Department to ensure that these projects are coordinated with local Workforce Investment Boards. The conferees also

encourage the Department of Labor to ensure that project performance is adequately documented and evaluated. The conference

agreement includes the following amounts for the following projects

and activities:

Dislocated workers

—$600,000 to develop and implement technology training

through the Resource Recovery Program—Campbellsville University, TN; —$500,000 for Workforce Development project to retrain older

incumbent workers for Montana workforce—Montana State University, Billings; —$1,600,000 to the Montana Tech Foundation for the Northwest Regional Miner—Training and Research Facility—Butte,

Montana;

—$800,000 for the River Valley Machine Tool Technology program to retrain displaced workers—Central Maine Technical College;—$1,400,000 for Coastal Enterprises Inc.’s New Enterprise Initiative Fund (NEIF) to provide training for dislocated workers to

transition into new jobs—Maine; —$650,000 for the Iowa Training Opportunities Program;

—$927,000 for the JobLinks Program;

—$50,000 for Clemson University to retrain tobacco farmers;

—$185,000 for the Hawaii Department of Labor/Kauai Cooperative Extension;

—$464,000 for High Tech Training—Maui, Hawaii;

—$861,000 for the Clayton College and State University in

Georgia for a virtual education and training project;

—$184,000 for the Adult Computer Skills Training Initiative

(ACSTI) through the Education and Research Consortium of Western North Carolina, Inc.;

—$464,000 for the Bethel Native Corp.—Alaska; and

—$500,000 for the University of Alaska/Ketchikan Shipyards

training program for shipyard workers.

Pilots and demonstrations

—$1,275,000 for the Mott Community College Workforce Development Institute for Manufacturing Simulation—access to electronic library of technology, developed as part of DOL’s America’s

Learning Exchange—Michigan;

—$1,000,000 for Jobs for America’s Graduates, School-to-Work

projects for at-risk young people;

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—$500,000 to the University of Mississippi for Workforce

training to support real time captioning initiatives for the hearing

disabled—Oxford, Mississippi; —$750,000 for Technology Tool Kit to train at-risk young people in occupations related to the use of automated identification

technology—Mississippi Valley State University; —$850,000 to train Northern Maine’s workforce for employment in the metal trades—Northern Maine Technical College; —$691,000 to the San Diego State University Foundation to

implement innovative high-tech training programs; —$900,000 for the South Dakota Intertribal Bison Cooperative;

—$700,000 for the Greater Columbus Ohio Chamber of Commerce Career Academies program—project to design and test programs in partnership with workforce development system; —$250,000 for Job Corps of North Dakota for the Fellowship

Executive Training Program; —$276,000 to the City of Monrovia, CA to train youth in information technologies; —$1,059,000 to the Californina State Polytechnic University in

Pomona, CA to develop technology training programs; —$921,000 to Precision Manufacturing Institute in Meadville,

PA for training in the latest technology in the tooling and machine

trades;

—$921,000 to Enterprise State Junior College in Enterprise,

AL for technology training in the College’s Center for Higher Technology; —$369,000 to Employment Solutions in Lexington, KY;

—$855,000 to Florida Community College at Jacksonville for

aircraft maintenance training at the Aviation/Aerospace Center of

Excellence;

—$92,000 to the Chesapeake Center for Youth Development in

Baltimore, MD for serving at-risk youth; —$276,000 to Benedictine Programs and Services in Ridgely,

MD for serving at-risk youth through the Industrial Training Center;

—$92,000 to Green Thumb, Inc. to conduct a program for lowincome elders to develop entrepreneurial skills that utilize e-commerce and IT in Wadena, MN;

—$500,000 for Kirkwood Community College and ACT, Inc. for

workforce skills development in Iowa;

—$500,000 for SMART Partner programs high-tech skills

training through establishment of the Virtual Advanced Manufacturing Training Center—Des Moines Area Community College,

Iowa;

—$1,036,000 to the National Institute for Metalworking Skills

in Fairfax, VA to serve youth and adults in the area’s metalworking industry;

—$464,000 for the American Indian Science and Engineering

Society—Rural Computer Utilizaton Training;

—$464,000 for the Maui Economic Development Board—Rural

Computer Training;

—$2,900,000 for the Remote Rural Hawaii Job Training project

for low income youth and adults;

—$3,200,000 for Samoan/Asian Pacific Job Training—Hawaii;

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—$4,000,000 for Training and Education Opportunities—University of Hawaii at Maui; —$200,000 for the Vermont Information Technology Center

model information technology training initiative—Champlain College, Burlington, VT; —$750,000 for the Vermont Department of Employment and

Training one-stop career resource centers; —$1,900,000 for the North Country Career Center model education and training program—Newport, VT; —$92,000 for the Westchester-Putnam Counties Consortium

for Worker Education and Training, Inc. for apprenticeship and

training programs to serve the NY construction industry; —$485,000 for Waukesha, Wisconsin, workforce training for

economically disadvantaged youth and adults at La Casa de

Esperanza; —$550,000 for the Dream Center to provide job and training

skills for new labor market entrants or reentrants—LA, CA;

—$300,000 for VT Technical College—Technology Training Initiative;

—$880,000 for Focus:HOPE in Detroit for an Information

Technologies Center that provides education and training programs

to women and minorities;

—$691,000 to Campbellsville (KY) Industrial Authority for programs to upgrade the information technology skills in the KY community; —$230,000 to Career Visions, Inc. in Louisville, KY to pilot

computer-based assistive technology training; —$276,000 for Career Resources, Inc. in Louisville, KY to develop a basic computer training program focusing on workplace applications; —$461,000 to the University of Northern Iowa for a program

to integrate immigrants and refugees into the workforce; —$493,000 to the Greater Sacramento Urban League, CA for

an Urban Achievement Program targeting training, employment

and support for urban youth;

—$921,000 to Jones County Junior College in Ellisville, MS for

development and implementation of a technology training program;

—$921,000 for Haymarket Center in Chicago, IL, to provide

training services through the Family Enrichment Center;

—$921,000 to National Student Partnerships in Washington,

DC;

—$92,000 to the International Agri-Center, in Tulare, CA for

a E-Commerce training initiative;

—$650,000 for the UNLV Center for Workforce Development

and Occupational Research;

—$100,000 for the Community Self-Empowerment & Employment Program (CSEEP) (PA)—comprehensive employment readiness, job development, job placement, and case management for

area low-income residents—Pennsylvania;

—$500,000 for Philadelphia Revitalization and Education Program (PREP) to train minorities for careers in the building trades

through its Diversity Apprenticeship Project (DAP)—Pennsylvania;

—$921,000 to Wrightco Technologies, Inc. for information technology training through a ‘‘Fast Track to the Future’’ program;

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—$480,000 for hands-on manufacturing training at the Manufacturing and Applied Technology Training Center (MATC)—Central Oregon Community College; —$100,000 for BASE, Inc. to provide occupational skills

through its Youth Competency Development Program and training

in the construction trades for low-income/minority women through

partnership with Thaddeus Stevens State College of Technology—

Lancaster, PA;

—$250,000 for Green Thumb, Inc.—conduct program for lowincome elders to develop computer skills—Pennsylvania; —$500,000 for Allegheny County, Pennsylvania, training of information technology workers; —$300,000 for Lehigh University Job Training for hard to

serve disadvantaged youth in manufacturing sector—-PA; —$638,000 for the Collegiate Consortium for Workforce & Economic Development, Philadelphia Naval Business Center—PA; —$232,000 for the Yukon Kushokwim Health Corporation—

Alaska;

—$300,000 for Koahnic Broadcasting—Alaska;

—$550,000 for Kawerak, Inc. Vocational Training for Alaska

Natives—Nome, Alaska;

—$800,000 for Ilisagvik College—Barrow, Alaska;

—$927,000 for the Alaska Federation of Natives Foundation;

—$900,000 for Tlingit-Haida project—job training to unemployed natives in southeast Alaska; —$2,300,000 for Alaska Works, Construction Job Training—

Fairbanks, Alaska;

—$2,500,000 for the University of Alaska Fairbanks in consultation with Western Alaska regional Native non-profit corporations to conduct job training programs; —$1,250,000 for the Alaska Native Heritage Center, and

Bishop Museum in Hawaii; —$921,000 for Transylvania Vocational Services, Inc. in

Brevard, NC for training people with developmental disabilities;

—$184,000 for the More Opportunities for Viable Employment

program through the Tulare (CA) County Office of Education, Services for Education and Employment Division;

—$276,000 to the South Metro Regional Leadership Center in

University Park, IL;

—$2,037,000 to the Lawton & Rhea Chiles Center for Healthy

Mothers and Babies in Tampa, FL for training paraprofessionals in

the health-care field;

—$170,000 for Community Technology and Education Center

at the Los Angeles River Center and Gardens in California for a

job training initiative;

—$43,000 to Signature Academy Inc., to further develop the

Exodus to Excellence Youth Program;

—$850,000 for Sinclair Community College, Dayton, Ohio for

an out-of-school youth training project;

—$850,000 to Kingston-Newburgh Enterprise Community,

Newburgh, New York, for a workforce development project;

—$213,000 to the Sullivan-Warwarsing Rural Economic Area

Partnership, in Ferndale, New York for the planning and development of a manufacturing technology training center;

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—$723,000 for Reading Berks Emergency Shelter, Reading,

Pennsylvania to provide employment and training opportunities for

disadvantaged individuals; —$213,000 to the Melwood Horticultural Training Center,

Upper Marlboro, Maryland, for workforce training for the disabled; —$340,000 to the Safer Foundation, Chicago, Illinois for a

workplace acclimation program for ex-offenders; —$170,000 for South Suburban College, South Holland, Illinois

to expand a bus mechanic workforce development program; —$102,000 to the Dallas Urban League, Inc. in Dallas, Texas

for the ACES program to provide literacy and job skills to disadvantaged youth and adults; —$765,000 to The West Side Industrial Retention and Expansion Network (WIRE–Net), Cleveland, Ohio;

—$43,000 to Full Employment Council in partnership with the

Greater Kansas City AFL-CIO in Missouri for Project Prepare; —$85,000 to Alderson-Broaddus College, College Hill, Philippi,

West Virginia for a collaborative information technology training

program; —$595,000 for the Hiram G. Andrews Rehabilitation Center in

Johnstown, Pennsylvania to expand a job training program for people with disabilities; —$590,000 for the Northwest Concentrated Employment Program in Ashland, Wisconsin, for an online skill matching initiative

tied to the O*Net database;

—$510,000 to the Berkshire Applied Technology Council, Inc.,

Pittsfield, Massachusetts to expand training and develop distance

learning; —$1,275,000 to the San Francisco Department of Human Services, California, for its Community Jobs Initiative; —$616,000 to the Charity Cultural Services Center, San Francisco, California, for job training; —$468,000 for the Rebirth of Englewood Community Development Corporation in Chicago, Illinois for a job training initiative in

partnership with the ITT Research Institute;

—$468,000 for the Northern Great Plains Initiative for Rural

Development, Crookston, Minnesota, to provide education and

training in technology support;

—$298,000 to Kent State University in Ohio for the Ohio Employee Ownership Center, for workplace development; and

—$425,000 to Rhode Island Department of Labor and Training,

Providence, Rhode Island, for a job training program;

There is a shortage of trained closed captioners to enable the

deaf and hard of hearing community to get news and other vital

information from live television. In order to meet the requirements

set forth by the Telecommunications Act of 1996, there is an urgent

need for pilot programs to increase the availability of trained closed

captioners. The conferees urge the Employment and Training Administration to invest in and support research and pilot programs,

which would allow for an adequate number of captioners to be

trained.

The conferees believe that the Association of Farmworker Opportunity Programs provides valuable technical assistance and

training to grantees and has distinguished itself as a tremendous

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resource. Its Children in the Fields Campaign provides information, education, and technical assistance related to child labor in

agriculture. The Campaign also provides other assistance related to

employment, training (including pesticide and other worker safety

training for children and adults). The Department is encouraged to

continue the services that the Association provides in these areas.

The conferees urge the Employment & Training Administration to demonstrate programs that build upon identified best practices such as the Public/Private Venture’s model workplace mentoring pilot program.

The conferees are concerned with the lack of mentoring and

other support services available to the youth of incarcerated parents or legal guardians. The conferees urge the Employment and

Training Administration to fund demonstration programs to meet

the special needs of these youth. These activities should build upon

identified best practices such as the U.S. Dream Academy’s model

which helps youths with parents or guardians involved in life cycles of incarceration and release. Its aim is to help these youths become good and productive citizens.

The fiscal year 2000 conference report (H. Rept. 106–479) included $1,000,000 for the Massachusetts Corporation for Business,

Work and Learning for the International Shipbuilding Training

Demonstration project. However, the reopening of the Fore River

Shipyard in Quincy has been delayed. Workers dislocated from the

closing of the shipyard still need job training; therefore, the Department is directed to use the $1,000,000 in the fiscal year 2000

appropriation to fund the Corporation for Business, Work and

Learning for the Training of workers in the Quincy area for jobs

within the Marine and Shipbuilding industries.

STATE UNEMPLOYMENT INSURANCE AND EMPLOYMENT SERVICE

OPERATIONS

The conference agreement includes $3,365,698,000 for state

unemployment insurance and employment service operations instead of $3,097,790,000 as proposed by the House and

$3,249,430,000 as proposed by the Senate. The agreement includes

$35,000,000 instead of the $25,000,000 proposed by the Senate for

reemployment services grants to insure that unemployment insurance claimants will be able to get the customized re-employment

services they need to speed their reentry to employment. The

House provided no funding for this program.

The conference agreement includes $26,100,000 for the foreign

labor certification program as proposed by the House instead of

$25,600,000 as proposed by the Senate. For one-stop centers/labor

market information, the agreement includes $150,000,000 instead

of the $110,000,000 proposed by the Senate. The House provided no

funding for this program. These funds will be used to support infrastructure upgrades at the State level for one-stop career center system operations, labor market information, and integrated services

to employers and job seeker customers.

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PROGRAM ADMINISTRATION

The conference agreement includes $159,158,000 for program administration instead of $146,000,000 as proposed by the House

and $156,158,000 as proposed by the Senate. The detailed table at

the end of this joint statement reflects the activity distribution

agreed upon. The conference agreement also includes funding for

management and oversight of pilot and demonstration projects and

additional administrative funding for backlog reduction in the alien

labor certification program as listed in the Senate report.

PENSION AND WELFARE BENEFITS ADMINISTRATION

SALARIES AND EXPENSES

The conference agreement includes $107,832,000 for the pension and welfare benefits administration, salaries and expenses instead of $98,934,000 as proposed by the House and $103,342,000

as proposed by the Senate. The increase will fully fund the request

for expanded health and pension education and outreach efforts

and enhanced pension enforcement.

PENSION BENEFIT GUARANTY CORPORATION

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

$11,148,000 as proposed by the House.

EMPLOYMENT STANDARDS ADMINISTRATION

SALARIES AND EXPENSES

The conference agreement includes $363,476,000 for the employment standards administration, salaries and expenses instead

of $338,770,000 as proposed by the House and $352,764,000 as proposed by the Senate. This amount fully funds the request for ESA,

including the Wage and Hour Division’s request to expand its domestic child labor compliance and enforcement efforts; and the Office of Federal Contractor Compliance’s activities to increase outreach, education, and technical assistance to federal contractors

through industry partnerships on equal pay issues; and a customer

communications initiative in the Office of Worker’s Compensation.

On contracts for the provision of debt collection services, the

Department of Labor shall continue to recognize the payment of

commissions in the determination of McNamara-O’Hara Service

Contract Act (SCA) wage rates and shall continue to recognize such

payments as an offset against an employer’s SCA prevailing wage

obligation. In addition, the Department is encouraged to consider

the special circumstances for contingency fee-based debt collection

contracts and the potential fluctuations in commissions, particularly for less experienced employees.

SPECIAL BENEFITS

The conference agreement includes bill language to allow the

Secretary to use fair share collections to fund capital investment

projects and special investments to strengthen compensation fund

control and oversight. The amounts cited in the House and Senate

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bills have been modified to reflect updated estimates of fair share

collections from the non-appropriated agencies, such as the Postal

Service, for fiscal year 2001.

BLACK LUNG DISABILITY TRUST FUND

The conference agreement includes a definite annual appro- priation of $975,343,000 for black lung benefit payments and interest payments on advances made to the Trust Fund as proposed by

the House instead of an indefinite permanent appropriation as proposed by the Senate.

OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION

SALARIES AND EXPENSES

The conference agreement includes $425,983,000 for occupational safety and health administration, salaries and expenses as

proposed by the Senate instead of $381,620,000 as proposed by the

House. The conference agreement does not include language proposed by the Senate that would have earmarked $22,200,000 of the

increase over the fiscal year 2000 appropriation for education,

training, and consultation activities. The House bill contained no

similar provision. The detailed table at the end of this joint statement reflects the conferees’ agreed upon activity distribution.

MINE SAFETY AND HEALTH ADMINISTRATION

SALARIES AND EXPENSES

The conference agreement includes $246,747,000 for mine safety and health administration, salaries and expenses instead of

$233,000,000 as proposed by the House and $244,747,000 as proposed by the Senate. The conference agreement includes $2,500,000

over the budget request for physical improvements at the National

Mine Safety and Health Academy.

The conference agreement includes language proposed by the

Senate that allows MSHA to retain and spend up to $1,000,000 in

fees collected for the approval and certification of mine equipment

and materials. The conference agreement also includes language

establishing a $1,000,000 contingency fund for mine rescue and recovery activities. The House bill contained no similar provisions.

Concerns have been expressed about the possible ramifications

of a rulemaking on the use of conveyor belts in underground coal

mines, including concerns about the validity of the testing on which

the rule is based. MSHA is urged to carefully examine the record

and to conduct additional research that may be required to address

any significant concerns that have been raised.

The conferees are extremely concerned by a recent catastrophe

in Eastern Kentucky. Millions of gallons of slurry coal waste broke

free from an impoundment causing considerable damage to the environment and disrupting water supply for citizens along the Big

Sandy and Ohio Rivers. The conferees believe this event warrants

a thorough examination of current coal waste disposal methods and

an exploration of future dumping alternatives. Therefore, the conference agreement includes $2,000,000 for a contract with the National Academy of Sciences to examine engineering standards for

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coal waste impoundments, provide recommendations for improving

impoundment structure stabilization, and evaluate potential alternatives for future coal waste disposal, including the benefits of

each alternative. The Academy shall seek the participation of representatives of relevant federal, state, and private entities, to include MSHA, OSM, EPA, Corps of Engineers, State mining authorities, and mining companies. Findings of this study shall be

conveyed to the Committees on Appropriations no later than October 15, 2001.

BUREAU OF LABOR STATISTICS

SALARIES AND EXPENSES

The conference agreement includes $451,584,000 for Bureau of Labor Statistics, salaries and expenses instead of $440,000,000 as

proposed by the House and $446,584,000 as proposed by the Senate. The conference agreement also includes the Senate provision

making $10,000,000 available for obligation on a program year

basis from July 1, 2001 to June 30, 2002. The House bill contained

no similar provision. This funding level provides increases for improvements to existing economic measures, improvements in labor

market information mandated by WIA, and a new time use survey.

DEPARTMENTAL MANAGEMENT

SALARIES AND EXPENSES

The conference agreement includes $380,839,000 for depart- mental management, salaries and expenses instead of $244,889,000

as proposed by the House and $337,964,000 as proposed by the

Senate.

The conference agreement includes $148,150,000 for the Bu- reau of International Labor Affairs instead of $70,000,000 as proposed by the House and $115,000,000 as proposed by the Senate.

The conference agreement also includes language proposed by the

Senate to authorize the expenditure of funds for the management

or operation of Departmental bilateral and multilateral foreign

technical assistance through grants and contracts. The funds for bilateral assistance are made available through September 30, 2002.

The House bill contained no similar provision. In total, the conference agreement includes $82,000,000 to assist developing countries with the elimination of child labor. Of this amount,

$45,000,000 is for expansion of ILO’s International Programme for

the Elimination of Child Labor. In addition, $37,000,000 is provided for bilateral assistance to improve access to basic education

in international areas with a high rate of abusive and exploitative

child labor. These new bilateral initiatives should be developed in

consultation and coordination with USAID to ensure these programs fit with the overall foreign operations policy of the Administration and are in compliance with the Foreign Assistance Act. The

conference agreement includes $45,000,000 as proposed by the Senate to augment the capacity of Ministries of Labor to enforce labor

standards, to develop social safety net programs, and to develop information on enforcement of labor laws around the world. The conference agreement includes $10,000,000 for the Global HIV–AIDS

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Workplace Initiative, and these funds are provided in the Department of Labor appropriation instead of the HHS Public Health and

Social Services Emergency Fund as proposed by the Senate.

The conferees also include funding for the following activities:

—$900,000 to the University of Iowa for research on the

issue of abusive and exploitive child labor and other labor-related issues; and

—$250,000 to the Association of Farmworker Opportunities Programs for public education on abusive child labor.

The conferees note from the recent World AIDS Conference

that many national economies continue to be profoundly and adversely affected by the HIV–AIDS pandemic. For example, employers in South Africa are now hiring two employees for every one

skilled job. The gross domestic product in many countries in Africa

and Asia is actually contracting because of a shrinking adult work

force attributable to HIV–AIDS related deaths. At the same time,

there is mounting evidence that workplace-based HIV–AIDS education and prevention programs can help prevent the spread of

HIV, especially in high-risk occupations. Such programs can help

stem employers’ loss of skilled workers, reverse declining productivity, and provide mechanisms for caring for workers living with

HIV and AIDS. Consequently, the conferees expect ILAB to assume

a leading role in developing innovative business-trade union partnerships to improve HIV–AIDS prevention and to improve coordination among the Labor Department, Commerce Department, and

USAID.

The conference agreement includes $23,002,000 and language

establishing the Office of Disability Employment Policy in the Department of Labor as proposed by the Senate. The House bill continued funding for the President’s Committee on Employment of

People with Disabilities, but this activity is subsumed in the new

Office of Disability Employment Policy.

The conference agreement includes $37,000,000 to establish a

permanent, centralized information technology investment fund.

VETERANS EMPLOYMENT AND TRAINING

The conference agreement includes $211,713,000 for veterans

employment and training instead of $201,277,000 as proposed by

the House and $206,713,000 as proposed by the Senate. Included

in this amount is $17,500,000 for the homeless veterans program.

OFFICE OF INSPECTOR GENERAL

The conference agreement includes $54,785,000 for the office of

inspector general as proposed by the Senate instead of $51,925,000

as proposed by the House.

GENERAL PROVISIONS

ERGONOMICS

The conference agreement does not include a provision included in both the House and Senate bills relating to regulations

issued by the Occupational Safety and Health Administration relating to ergonomic protection.

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EXTENDED DEADLINE FOR EXPENDITURE OF WELFARE TO WORK

FUNDS

The conference agreement includes a provision proposed by the

Senate extending the availability of Welfare to Work funding from

three to five years. The House bill contained no similar provision.

H2A REGULATIONS

The conference agreement includes a modified version of the

Senate provision prohibiting the implementation or enforcement of

the pending H2A regulations, but allows for all activities related to

the development of revised regulations. The conferees support the

efforts by the Secretary of Labor and the Attorney General designed to streamline the H2A application process. The conferees expect the Department and the Immigration and Naturalization

Service to work closely with the stakeholders to expeditiously address concerns raised by the growers so that the streamlined application process produces a more efficient new system.

DEADLINE FOR DETERMINATION ON HOUSING REQUIREMENTS FOR H2A

WORKERS

The conference agreement includes a provision regarding housing inspections for H2A temporary agricultural laborers. This provision ensures that the deadline for housing inspections for H2A

workers corresponds with the Secretary’s thirty day statutory deadline for making H2A temporary agricultural labor certification decisions. The thirty day deadline may have been effectively nullified

in some cases by the current regulations requiring that inspections

on employer provided housing need not be completed until twenty

days before the date the employer needs H2A workers. The provision requires housing inspections to be completed in time for the

Secretary to make her certification decision in accordance with the

thirty day statutory deadline.

ALIEN LABOR CERTIFICATION

The conference agreement includes a provision that authorizes

the use of H1B fee revenue to process permanent labor certifications. This is needed because the recent legislation increasing the

number of H1B visas authorized will result in a substantial increase in the volume of permanent labor certification applications.

The Department of Labor has made significant progress over the

past 18 months to reduce the backlog of applications for permanent

labor certifications, and in expediting the labor condition application process for the H–1B program. In order to allow the Department to make further progress on timeliness of labor certifications

without undermining the review process, the Department will be

permitted to utilize a portion of fees generated by the H–1B program to support the administration of the permanent labor certification program.

ELIMINATION OF WELFARE TO WORK PERFORMANCE BONUSES

The conference agreement includes a provision proposed by the

Senate to eliminate Welfare to Work performance bonuses. The

House bill contained no similar provision.

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TITLE II—DEPARTMENT OF HEALTH AND HUMAN

SERVICES

HEALTH RESOURCES AND SERVICES ADMINISTRATION

HEALTH RESOURCES AND SERVICES

The conference agreement includes $5,525,476,000 for health resources and services instead of $4,784,232,000 as proposed by the

House and $4,677,424,000 as proposed by the Senate.

The conference agreement includes bill language identifying $226,224,000 for the construction and renovation of health care and

other facilities instead of $10,000,000 as proposed by the Senate.

The House bill contained no similar provision. These funds are to

be used for the following projects: Northwestern University Life

Sciences Building; ACCESS Community Health Network in Illinois;

Northwestern Memorial Hospital; University of Chicago Core Genetics Research Facility; Condell Medical Center, Regional Center

for Cardiac Health Services; Lake County Health Department; University Center of Lake County, Illinois; Finch University of Health

Sciences/Chicago Medical School; Pennington Biomedical Research

Center in Baton Rouge, Louisiana; Texas Institute for Rehabilitation and Research; Massey Cancer Center of Virginia Commonwealth University; Aurelia Osborn Fox Memorial Hospital in

Oneonta, New York; Margaretville Memorial Hospital in

Margaretville, New York; Martha’s Village and Kitchen Medical

Clinic in Indio, California; Hanson House at the Desert Regional

Medical Center; Nutrition Center at Wake Forest University Baptist Medical Center; James Whitcomb Riley Hospital for Children

in Indianapolis, Indiana; University of South Alabama Gulf Coast

Cancer and Research Institute; North Baldwin Hospital Surgery

Center in Bay Minette, Alabama; Monroe County Hospital in

Monroesville, Alabama; Touro University College of Osteopathic

Medicine in Vallejo, California; Medical Sciences Building at the

University of Cincinnati Medical Center in Cincinnati, Ohio;

Tinnitus Center for Tinnitus Retraining Therapy at the University

of North Carolina at Greensboro; Alfred E. Mann Institute and Biomedical Engineering Center at the University of Southern California; Paradise Valley Hospital in National City, California; Children’s Hospital and Health Center in San Diego, California; Dental

Education in Care of Disabled Clinic at the University of Washington; Alexander Hughes Community Center in Claremont, California; Biomedical Marine Research Facility at Harbor Branch;

Kessler Rehabilitation Research Institute in West Orange, New

Jersey; Child Health Institute of New Jersey; University of Nevada

Las Vegas Biotechnology/Bioengineering Research Facility;

McCready Health Services Foundation in Crisfield, Maryland; Center for Health Sciences at Dominican College in Rockland County,

New York; Pediatric Cardiac Intensive Care Unit at Cook Children’s Medical Center in Fort Worth, Texas; Tricounty Health Center at Northern Illinois University; Aurora Primary Care Consortium; Turning Point Facility in Union County, North Carolina; Gila

River Indian Community Diabetes Center in Arizona; Dalton Cardiovascular Research Center at the University of Missouri at Columbia; Scripps Memorial East County Hospital in El Cajon, CaliVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00115 Fmt 6601 Sfmt 6601 E:\HR\OC\HR1033.001 pfrm03 PsN: HR1033
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fornia; Marklund Children’s Home; Misericordia Hearts of Mercy in

Chicago, Illinois; University of Connecticut Health Center; Nassau

County Health Care Corporation; Women’s Health Center at Proctor Hospital in Peoria, Illinois; Oklahoma Medical Research Foundation; Louisiana State University Health Sciences Center FeistWeiller Cancer Center in Shreveport, Louisiana; Lewis County

General Hospital in Lewis County, New York; Stetson University

in Deland, Florida; National Center for Primary Care at Morehouse

School of Medicine; Springdale Community Health Center in

Springdale, Washington; Edgemoor Geriatric Hospital in San Diego

County, California; Union Hospital Midwest Center for Rural

Health in Terre Haute, Indiana; Bennett W. Smith Family Life

Wellness Center in Buffalo, New York; Children’s Hospital of Buffalo; Fresno Community Hospital and Medical Center Regional Ambulatory Care Facility in Fresno, California; Pediatric Oncology

and the Batchelor Children’s Research Center at the University of

Miami/Jackson Memorial Medical Center; Valley Hospital Cancer

and Ambulatory Care Center in Paramus, New Jersey; Functional

Genomics Research Center at Florida Atlantic University in Boca

Raton, Florida; Michael and Dianne Bienes Cancer Center at Holy

Cross Hospital in Ft. Lauderdale, Florida; Outpatient Surgery Facility at Memorial Hospital in Towanda, Pennsylvania; University

of Scranton Allied Health Laboratory; Southern Illinois Healthcare

Foundation in East St. Louis, Illinois; University of St. Francis in

Fort Wayne, Indiana; Maricopa Integrated Health Systems in

Phoenix, Arizona; Albany Medical Center Breast Cancer Diagnostic

and Treatment Center in Albany, New York; Adirondack Medical

Center in Saranac Lake, New York; Mary McClellan Hospital in

Cambridge, New York; North Central Texas Community Health

Care Center in Wichita Falls, Texas; St. Joseph’s Hospital New

York Regional Hemodialysis and Cardiac Care Enhancement Center in Syracuse, New York; Stroud Regional Hospital in Stroud,

Oklahoma; Will County Health Center in Illinois; Molecular Genetics Core for the Center for Excellence in Cardiovascular-Renal Research at the University of Mississippi Medical Center;

Tallahatchie General Hospital and Extended Care Facility in

Charleston, Mississippi; Operation PAR in Pinellas Park, Florida;

Detroit Medical Center, Women’s and Children’s health facility; Detroit Medical Center, Rehabilitation Institute of Michigan; Big

Springs Medical Association in Missouri; Southeast Missouri

Health Network; People’s Health Center in St. Louis, Missouri;

Denver Children’s Hospital; National Jewish Medical and Research

Center in Denver; Breast Cancer Center at Our Lady of Fatima

Hospital in North Providence, Rhode Island; Jackson Medical Mall,

Mississippi Institute for Cancer Research; Conehatta Tribal Community Health Care Clinic; Sharkey/Issaquena Hospital, Rolling

Fork, Mississippi; Jackson Laboratory Physiogenomics facility in

Maine; St. Joseph’s Hospital in Ohio; Huron Hospital in Cleveland,

Ohio; Ohio Poison Control Collaborative; Boys Town National Research Hospital in Omaha, Nebraska; University of Utah’s Huntsman Cancer Institute; University of North Carolina Genomics and

Bioinformatics; Burlington Community Health Center, Burlington,

Vermont; Red Logan Community Health Center; Vermont Cancer

Center; Vermont Lung Association Asthma Clinic; University of

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Mississippi, Guyton Building Expansion; Haysi Medical Clinic in

Virginia; Allegheny-Clarion Valley Community Health Center; University of Alabama-Birmingham, Interdisciplinary Biomedical Research Facility; Umatilla County Public Health Facility; Bioengineering Research Facility at Oregon Health Sciences University; Temple University Outpatient Facility; Philadelphia College of

Osteopathic Medicine; Thomas Jefferson University Cancer Research Facility; State of Alaska Public Health Laboratory in Anchorage; ‘‘Pathways Home’’ inpatient facility for the Southcentral

Foundation; Montezuma Creek Health Care Center; Sorenson

Multicultural Health Center; Midvale/West Jordan and Glendale,

Utah Health Centers; St. Vincent Hospital in Billings, Montana;

Rocky Mountain Regional Trauma Center at Denver Health and

Hospital Authority; Carriozo Health Clinic; Dan C. Trigg Memorial

Hospital; El Pueblo Health Services; La Clinica de Familia in

Chaparral, New Mexico; La Clinica de Familia in San Miguel, New

Mexico; Las Clinical del Norte De Abiquiu; Logan Family Clinic in

New Mexico; Montgomery Women’s Health Services Clinic of Lea

County; Mora Community Health Service; Ruidoso Sub-station

Health Service; Sierra Vista Family Community Clinic; Tatum

Health Clinic; Children’s National Medical Center in Washington;

Arkansas Children’s Hospital; Biomedical Biotechnology Center at

the University of Arkansas Medical School in Little Rock; University of Arkansas, Fayetteville, Center for Protein Structure and

Function; University of Arkansas, Little Rock, Applied Biosciences

Program; Kansas University Human Imaging Institute; North

Philadelphia Health System; Children’s Health Fund; Crozer-Keystone Health System in Delaware County; Family Care Health

Center in St. Louis, Missouri; Cathedral Healthcare System; Chase

Brexton Health Services, Inc.; Children’s Hospital of Boston; Children’s Hospital of Wisconsin Neonatal Intensive Care Unit; Daviess

County Community Health Center; Family Health Centers, Inc. of

Orangeburg, South Carolina; Community Health facilities in southeast Iowa; Hillside Hospital in Long Island, New York; La Rabida

Children’s Hospital, Chicago; Marquette University School of Dentistry; Medical University of South Carolina Oncology Center;

Molokai General Hospital; New York University School of Medicine; Palmer College of Chiropractic in Davenport, Iowa; Pioneer

Valley Life Sciences Joint Venture between the University of Massachusetts and Baystate Medical Center; Rio Arriba County Residential Treatment Facility; Rutland Regional Medical Center; Sea

Island Comprehensive Health Care Corporation; St. Mary’s

Healthcare Promotion Center in Huntington, West Virginia; St.

Mary’s Women and Infants Center of Dorchester; the Neurosciences program at West Virginia University; Tufts University

Center for Nutrition Research; University of South Carolina School

of Public Health; University of Vermont College of Medicine and

Fletcher Allen Health Care; University of Nevada, Las Vegas Cancer Center; University of Montana Center for Environmental

Health Sciences; University of Florida Genetics Institute; Hackensack University Medical Center in Hackensack, New Jersey; Brandeis University National Center for the Study of Behavioral Genetics and Genomics; Marlborough Hospital in Marlborough, Massachusetts; West Virginia University Eastern Panhandle Clinical

114

Campus in Martinsburg; St. Mary’s Hospital for Children, Bayside,

New York; Virginia Mason Medical Center, Seattle, Washington;

Memorial Hospital of Lafayette County, Darlington, Wisconsin;

Saginaw Cooperative Hospitals, Inc., Saginaw, Michigan; El Sereno

Family Health Center, El Sereno, Los Angeles; Community College

of Southern Nevada Medical Careers Center, North Las Vegas, Nevada; Columbia County Senior Services, Lake City, Florida; San

Luis Obispo medical therapy unit, California; Greene County

Health Care, Inc., Snow Hill, North Carolina; St. Clair County,

Belleville, Illinois, senior center and wellness clinic; Sunshine

House, New Haven, Connecticut; City of Culver City, California,

senior health and social services center; Community Partners

Healthnet Inc., Snow Hill, North Carolina; North Shore Long Island Jewish Health System, Hillside Hospital Campus, Glen Oaks,

New York; Cooper Green Hospital, Birmingham, Alabama; Whitman-Walker Clinic, Inc., Washington, DC; Prince George’s Hospital

Center, Cheverly, Maryland; Roseland Community Hospital, Chicago, Illinois; Metropolitan Family Services, Chicago, Illinois, mental and public health facility; South Suburban Family Shelter Inc.,

Homewood, Illinois; Rush-Presbyterian-St. Luke’s Medical Center,

Chicago, Illinois; Lake Charles Memorial Hospital, Lake Charles,

Louisiana; West End Medical Centers, Atlanta, Georgia; New York

Structural Biology Center, New York, New York; Memorial Freeport-Roosevelt Health Center, Roosevelt, New York; University of

North Carolina at Wilmington School of Nursing, Wilmington,

North Carolina; Joseph P. Addabbo Family Health Center,

Arverne, New York; Los Angeles Eye Institute, Los Angeles, California, Boston College, Chestnut Hill, Massachusetts; West Liberty

State College Dental Hygiene Clinic, West Liberty, West Virginia;

Grafton City Hospital, Grafton, West Virginia; New York University Downtown Hospital, New York City, New York; Saint Michael’s Hospital, Stevens Point, Wisconsin; Holyoke Health Center,

Holyoke, Massachusetts; Montefiore Medical Center, Bronx, New

York; Christopher Rural Health Planning Corporation, Christopher, Illinois; Centro de Salud Familiar La Fe, El Paso, Texas;

Englewood Hospital and Medical Center, Englewood, New Jersey;

Plaza Community Center, Inc., Los Angeles, California, children’s

health and social services center; Fairview University Medical Center, Minneapolis, Minnesota; Asian Human Services community

health center, Chicago, Illinois; Strong Memorial Hospital, Rochester, New York; University of Arkansas Medical Sciences, Little

Rock, Arkansas; Trinity Health Systems, Detroit, Michigan; Henderson County Rural Health Center in Oquawka, Illinois; and City

of Summersville, West Virginia, senior health and social services

facility.

The conferees are supportive of the efforts of the Academic

Medicine Development Corporation to implement a strategic initiative for human genetics research in New York.

The conference agreement includes bill language identifying

$253,932,000 for family planning instead of $238,932,000 as proposed by the House and $253,932,000 as proposed by the Senate.

The conferees concur with Senate report language regarding the

distribution of funds appropriated for Title X.

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The conference agreement includes bill language to provide $30,000,000 for abstinence education in fiscal year 2002 as proposed by the House. The Senate bill contained no similar provision. The conference agreement includes $1,168,700,000 for community health centers as proposed by the Senate instead of

$1,100,000,000 as proposed by the House. Within the total provided, $6,250,000 is for native Hawaiian health programs.

The conferees recognize the long-standing commitment and expertise of the University of Hawaii in addressing the unique health

care needs of the Pacific Basin region.

The conferees urge HRSA to give full and fair consideration to

proposals to support expanded services to reach priority populations in under-served communities in Kane, Marion, Saline, and

Will, Illinois counties on the southwest side of Chicago and in the

AAPI community on the north side of Chicago. The conference agreement includes $41,523,000 for the na- tional health service corps, field placements instead of $39,823,000

as proposed by the House and $38,116,000 as proposed by the Senate.

The conference agreement includes $87,924,000 for national health service corps, recruitment instead of $81,524,000 as proposed by the House and $78,625,000 as proposed by the Senate.

Within the total provided, $4,000,000 is for State offices of rural

health. The conferees recommend that national health service corps

loan repayment awards continue to be made in areas of greatest

need.

The conference agreement includes $638,048,000 for health professions instead of $410,987,000 as proposed by the House and

$230,714,000 as proposed by the Senate. Within the total provided,

$235,000,000 is for children’s graduate medical education. Also

within the total provided for allied health special projects, $921,000

is for expansion of the Illinois Community College Board’s program,

in coordination with the Illinois Department of Human Services, to

train and place welfare recipients in the allied health field using

distance technology. The amount provided does not include funding

to continue the demonstration project by the Utah area health education centers.

The conferees concur with House and Senate report language

regarding priority consideration for health careers opportunities

program (H–COP) grants to minority health professions institutions.

The conferees urge HRSA to give full and fair consideration to

proposals to expand access to primary and dental care services for

medically underserved populations located in the areas of St. Louis

City, and the Missouri counties of Jefferson, Lafayette, Greene, and

Douglas.

The conference agreement includes $18,016,000 for Hansen’s

disease services instead of $17,016,000 as proposed by both the

House and the Senate. Within the total provided, $900,000 is for

the Diabetes Lower Extremity Amputation Prevention program at

the University of South Alabama.

The conference agreement includes $714,230,000 for the maternal and child health block grant instead of $709,130,000 as proposed by both the House and the Senate. The conference agreement

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includes bill language designating $113,728,000 of the funds provided for the block grant for special projects of regional and national significance (SPRANS) as proposed by the House. It is intended that $5,000,000 of the SPRANS amount will be used for the

continuation of the traumatic brain injury State demonstration

projects as authorized by title XII of the Public Health Service Act.

The Senate bill contained no similar provision, instead it provided

$5,000,000 as a separate line item in the table for traumatic brain

injury. It is also intended that $5,000,000 of the SPRANS amount

will be used for Columbia Hospital for Women Medical Center in

Washington, DC to support community outreach programs for

women and $100,000 will be used for the St. Joseph’s Health Services of Rhode Island for the Providence Smiles dental program for

low-income children.

The conferees are supportive of HRSA’s efforts in preventing

youth suicides. HRSA has made reducing the rate of youth suicide

a priority for State MCH agencies, requiring States to address the

crisis of suicide with their block grant funding.

The conference agreement includes $90,000,000 for healthy

start as proposed by both the House and Senate. It is intended that

these projects will be evaluated and those activities that are proven

successful and can be replicated will be incorporated into the mission of the maternal and child health block grant program.

The conference agreement includes $8,000,000 for newborn and

infant hearing screening as proposed by the House instead of

$4,000,000 as proposed by the Senate.

The conference agreement includes $15,000,000 for organ

transplantation as proposed by the Senate instead of $10,000,000

as proposed by the House.

The conference agreement includes $22,000,000 for the bone

marrow program as proposed by the House instead of $17,959,000

as proposed by the Senate. The conferees continue to be aware of

the life saving success of the National Marrow Donor Program,

which now includes more than 4,000,000 potential volunteer donors. The conferees recognize the continuing need to increase minority representation in the national registry and support expansion of the National Marrow Donor Program’s cord blood bank initiative, which provides another major source of donors for patients,

particularly minority patients, in need of a marrow or blood stem

cell transplant.

The conference agreement includes $58,218,000 for rural

health outreach grants instead of $30,867,000 as proposed by the

House and $38,892,000 as proposed by the Senate. The conferees

are supportive of HRSA providing heart defibrillators to rural

areas.

The conferees include the following amounts for the following

projects and activities in fiscal year 2001:

—$50,000 for the La Crosse Health Science Consortium for a

demonstration to increase access to dental care in La Crosse county;

—$85,000 for the Tillamook County Health Department, Oregon, to expand primary and dental health services for underserved

populations;

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—$850,000 for AIDS Alliance for Children, Youth, and Families;

—$115,000 for the Anderson Valley Health Center, Inc.,

Boonville, California, to expand dental and health care services; —$128,000 for the Partnership for the Children in San Luis

Obispo County, California, for a low income dental clinic; —$170,000 for Northern Counties Health Care, Inc., St.

Johnsbury, Vermont for a rural outreach initiative; —$213,000 for the Mercer County Health Department in

Aledo, Illinois, to extend dental care services to rural underserved

populations; —$300,000 for Blackstone Valley Community Health Care,

Inc.;

—$359,000 for outreach activities of the Blue Ridge Community Health Service; —$400,000 for the Kentucky Emergency Medical Services

Academy; —$450,000 for CAP Services in Stevens Point, Wisconsin to extend dental health services to underserved populations; —$500,000 for St. Luke’s Free Clinic in Hopkinsville, Kentucky; —$500,000 for the Texas A&M HERO program;

—$500,000 for State and University of Alaska to train emergency medical personnel in rural areas; —$500,000 for Inland Health Northwest;

—$425,000 for Campbellton-Graceville Hospital in Graceville,

Florida, to expand clinical and preventive health care services to

low income, rural populations; —$550,000 for Langlade Memorial Hospital, Antigo, Wisconsin,

for a four county dental health initiative; —$700,000 for the Western Kentucky University mobile health

screening program; —$1,311,000 for outreach activities of the Lourdes Health Network in Pasco, Washington;

—$900,000 for Iowa Department of Public Health to develop

and demonstrate the use of technology for public health nurses

working in rural areas;

—$921,000 to continue and expand the development of the

Center for Acadiana Genetics and Hereditary Health Care at Louisiana State University Medical Center;

—$800,000 for the University of Southern Mississippi Center

for Sustainable Health Outreach;

—$1,106,000 for Carondelet Health Network of Arizona to improve the health status of multi-cultural and medically

disenfranchised populations through increased community health

access and comprehensive continuum of care;

—$1,200,000 for Southern Illinois University;

—$1,318,000 for Voorhees College in Denmark, South Carolina

for a Center of Excellence for rural health;

—$1,800,000 for the University of Colorado School of Dentistry

to conduct an oral health prevention and treatment program in

Shannon, Jackson, Bennett, and Todd counties in South Dakota;

—$1,900,000 for the Yukon-Kuskokwim Health Corporation’s

health care delivery system; and

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—$2,300,000 for the Mississippi State University Rural Health

Safety and Security Institute.

The conference agreement includes $13,439,000 for rural

health research instead of $11,713,000 as proposed by the House

and $5,000,000 as proposed by the Senate.

The conferees include the following amounts for the following

projects and activities in fiscal year 2001:

—$143,000 for the University of Pittsburgh Center for Rural

Health Practice;

—$170,000 for Madison Community Health Center, Madison,

Wisconsin, for a model preventive health program for hard to reach

and at-risk populations;

—$250,000 for the multiple sclerosis disease state management

program at the University of Mississippi Center for Pharmaceutical

Marketing;

—$306,000 for the Texas Tech University Health Sciences Center at El Paso and the University of Texas at El Paso for joint research on health problems of migrant workers;

—$400,000 for the McLaughlin Research Institute cancer education program;

—$500,000 for the University of Alaska to develop a research

and evaluation agenda for health care delivery;

—$840,000 for the Marshfield Clinic in Marshfield, Wisconsin,

for scientific, ethical and citizen advisory groups and education programs in connection with the development of a personalized medicine program;

—$921,000 for the Virginia Center for Sustainable Health Outreach at James Madison University;

—$921,000 for Atlantic City Medical Center for prevention

services and medical education activities;

—$1,275,000 for the University of North Dakota School of

Medicine, Grand Forks, North Dakota for a rural health program

in preventive medicine and behavioral sciences; and

—$1,612,000 for the Carolina’s Community Health Initiative

for its community health assessment plan.

The conferees encourage the National Human Genome Research Institute and the Agency for Healthcare Research and Quality to provide any necessary technical assistance to HRSA in supporting the Marshfield Clinic project.

The conference agreement includes $35,981,000 for telehealth

instead of $25,000,000 as proposed by the Senate. The House provided funding for this program within rural health research.

The conferees include the following amounts for the following

projects and activities in fiscal year 2001:

—$14,000 for networking capabilities of the Cullman Area,

Alabama, Mental Health Authority;

—$43,000 for Arrowhead Regional Medical Center, Colton,

California, for a telemedicine regional network;

—$85,000 for the New York Primary Care Health Foundation,

Inc., Flushing, New York, for a telehealth initiative;

—$111,000 for Staten Island University Hospital to support a

teleconferencing initiative to improve and strengthen linkages

within campuses;

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—$184,000 for the Union Hospital Telehealth Demonstration

project in Terre Haute, Indiana; —$300,000 for the University of Michigan Emergency Telemedicine Network;

—$350,000 for Molokai General Hospital to use the latest technology advances to provide health care in rural areas; —$340,000 for Massachusetts College of Pharmacy and Health

Sciences, Worcester, Massachusetts for a telehealth initiative;

—$361,000 for the Center for Telehealth and Distance Education at the University of Texas Medical Branch, Galveston, Texas

for a telehealth initiative;

—$430,000 for Daemen College in Amherst, New York to continue a project to provide distance learning/medical linkages to

rural counties in Western New York State;

—$500,000 for a telehealth project at Magee-Women’s Hospital;—$500,000 for the Susquehanna Health Systems telemedicine

project; —$468,000 for the Southern Illinois University School of Medicine telemedicine and rural health initiative project; —$489,000 for the La Crosse Medical Health Science Consortium, Inc., Wisconsin for a telehealth initiative;

—$750,000 for a joint New Mexico-Hawaii Telehealth Outreach

for Unified Community Health; —$638,000 for Children’s Hospital and Regional Medical Center in Seattle, Washington; —$737,000 for the Community Hospital Telehealth Consortium

in Louisiana for continued development of a regional telehealth

network;

—$783,000 for the Memorial Telehealth Network in Springfield, Illinois;

—$723,000 for Childrens Hospital Los Angeles, California, for

a telemedicine initiative;

—$737,000 for the Rural Telehealth and Community Education

Network at Central Michigan University;

—$900,000 for the Southwest Alabama Rural Telehealth Network at the University of South Alabama;

—$850,000 for New York Presbyterian Hospital for a telehealth initiative;

—$850,000 for the University of Pittsburgh Medical Center Information Technology project;

—$1,000,000 for the University of Florida Human Brain Functional Imaging Technology project;

—$800,000 for the University of Nebraska telemedicine outreach program;

—$850,000 for the Fairview Lakes Regional Medical Center in

Wyoming, Minnesota telemedicine project;

—$1,020,000 for the Northern California Telemedicine Network, Santa Rosa Memorial Hospital, Santa Rosa, California;

—$1,290,000 for a telemedicine program for downstate Illinois

through the Southern Illinois University Medical School in Springfield, Illinois;

—$1,335,000 for the University of Nevada Las Vegas Telemedicine Network;

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—$1,770,000 for the Idaho Telehealth Integrated Care Center

to establish a comprehensive telehealth clinic to support care in

rural and frontier areas;

—$1,843,000 for the Telehealth Deployment Research Testbed

program; —$1,800,000 for a project to link Rocky Mountain College and

Deaconess Billings Clinic with telemedicine capabilities; —$1,700,000 for the Saint Vincent Hospital in Billings, Montana for its Telemedicine Model;

—$2,418,000 for the Northeast Ohio Outreach Network to expand health services to rural residents in northeastern Ohio; and —$3,400,000 for the Alaska Federal Health Care Access Network.

The conference agreement includes $19,000,000 for emergency

medical services for children as proposed by the House instead of

$15,000,000 as proposed by the Senate. The conference agreement includes $20,000,000 for poison con- trol instead of $6,600,000 as proposed by the House and

$26,000,000 as proposed by the Senate. Funds are provided to support activities authorized in the Poison Control Center Enhancement and Awareness Act.

The conference agreement includes $6,000,000 for black lung clinics as proposed by the Senate instead of $5,943,000 as proposed

by the House. The conference agreement includes $3,000,000 for trauma care

as proposed by the Senate. The House bill contained no similar provision.

The conference agreement includes a total of $1,807,700,000 for Ryan White programs instead of $1,725,000,000 as proposed by

the House and $1,650,000,000 as proposed by the Senate. Included

in this amount is $604,200,000 for emergency assistance,

$911,000,000 for comprehensive care, $185,900,000 for early intervention, $65,000,000 for pediatric HIV/AIDS, $10,000,000 for dental services, and $31,600,000 for education and training centers.

The conference agreement includes bill language identifying

$589,000,000 for the Ryan White Title II State AIDS drug assistance programs instead of $554,000,000 as proposed by the House

and $538,000,000 as proposed by the Senate. The conferees concur

with Senate report language regarding the Institute of Medicine

study to evaluate the effectiveness of the current role and structure

of the Ryan White CARE Act and the efforts to create a national

consumer and provider education center within pediatric HIV/

AIDS.

The conference agreement includes $109,200,000 for Ryan

White AIDS activities that are targeted to address the trend of the

HIV/AIDS epidemic in communities of color, based on the most recent estimated living AIDS cases, HIV infections and AIDS mortality among ethnic and racial minorities as reported by the Centers for Disease Control and Prevention. These funds are allocated

as follows:

Within Ryan White Title I, the agreement provides

$34,000,000 to the competitive supplemental allocation targeted to

minority community based organizations, as defined by the Centers

for Disease Control and Prevention, and directs that these funds be

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allocated through the established planning council processes of eligible metropolitan areas. These funds are designed to reduce the

HIV related health disparities and improve the health outcomes for

HIV infected African Americans, Latinos, Native Americans, Asian

Americans, Native Hawaiians and Pacific Islanders. These funds

are expected to expand medical and supportive service capacity in

communities of color, and expand peer treatment education that is

both culturally and linguistically appropriate to individuals living

with HIV/AIDS.

Within Ryan White Title II, the agreement provides $7,000,000

for State HIV care grants to support educational and outreach

grants to minority community-based organizations to increase the

number of minorities participating in the AIDS Drug Assistance

Program (ADAP). The continuing under representation of African

Americans, Latinos, Native Americans, Asian Americans, Native

Hawaiians and Pacific Islanders in state run ADAP contributes to

their persistently poor health outcomes in comparison to other communities.

Within Ryan White Title III, the agreement provides $44,400,000 for planning grants, early intervention service (EIS)

grants to minority community-based health care and service providers with a history of service provision to communities of color.

Funds should also be made available to national, regional and local

organizations representing people of color to provide technical assistance collaborations, and linkages designed to strengthen HIV/

AIDS systems of care. Funds are intended to support the implementation of the plans developed by minority community based

and health care organizations. The conferees expect that fiscal year

2001 increases to Title III should be directed primarily towards

providing early intervention service grants to those organizations

that received Title III planning grants in the previous fiscal year

and enhancing the service capacity of existing minority EIS providers.

Within Ryan White Title IV, the agreement provides

$15,700,000 to fund traditional minority community-based providers of services to minority children, youth and families to develop and implement culturally competent and linguistically appropriate research-based interventions that provide additional HIV/

AIDS care, services and linkages. Funds are also intended to directly fund minority community based organizations and providers

to expand or implement programs specifically designed to provide

youth, adolescent, and young adult-focused HIV/AIDS care and

services.

The agreement provides $7,700,000 to AIDS education and

training centers. These funds are intended to increase training of

community-based minority health care professionals in AIDS-related treatments, standards of care, guidelines for the use of

antiretroviral and other effective clinical interventions, and treatment adherence for HIV/AIDS infected adults, adolescents and children, as developed by the U.S. Public Health Service. The training

of minority providers is to be implemented through collaborations

with Historically Black Colleges and Universities (HBCU) and Hispanic Serving Institutions, and Tribal Colleges. These efforts are

designed to increase the treatment expertise and HIV knowledge of

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minority front-line providers serving individuals living with HIV/

AIDS. Funds are also intended to support minority community

based organizations to train minority providers to deliver culturally

competent and language appropriate treatment education services.

The conferees intend that at least ninety percent of total title

IV funding be provided to grantees. The conferees expect the agency to use the funding increases for title IV, with the exception of

any increases provided through the CBC/Minority AIDS Initiative,

to provide, at a minimum, additional funds to existing grantees to

reflect the increases in the costs of providing comprehensive care.

The agency should use a significant portion of the remaining funds

to expand comprehensive services for youth, both through existing

and new grantees. The conferees believe that the agency should expand efforts to facilitate ongoing communication with grantees so

that prospective changes in the administration of the program can

be discussed.

From within the increase provided to pediatric AIDS demonstrations, the conferees encourage HRSA to target funds towards

approved but unfunded applications from the previous fiscal year. The conference agreement includes $140,000,000 for health care access for the uninsured instead of $25,000,000 as proposed by

the Senate. The House bill did not contain funding for this unauthorized program. Of this amount, $125,000,000 is included to provide grants to public, private, and non-profit health entities to develop and expand integrated systems of care and address service

gaps within such integrated systems with a focus on primary care,

mental health services and substance abuse services. The program

will supplement existing categorical safety net programs to assist

communities in better harnessing their current capabilities and resources. The national health care safety net is under enormous

strain and the demand for this initiative large. The remaining $15,000,000 is to continue the initiative that

was begun in fiscal year 2000 to help states identify the characteristics of the uninsured within the state and approaches for providing all uninsured with health coverage through an expanded

state, Federal and private partnership. States have shown great interest in committing to the initiative and a second year of funding

will produce a more comprehensive set of designs for providing insurance coverage for the uninsured. Sufficient funds are included

to support up to ten new state grants, provide technical assistance

to grantees and, if necessary, provide limited supplemental funding

to states funded in fiscal year 2000 to complete their work. The

Secretary is requested to submit a final report on state findings no

later than December 1, 2001. The report should provide state by

state summaries on baseline information, the process by which the

state developed recommendations, including a description of data

collection and partnerships, characteristics of the uninsured within

the state, the proposed approaches for providing all uninsured with

health coverage, and the estimated public and private cost of providing coverage. The report should also highlight and summarize

common findings, policy development efforts and approaches identified by the states.

The conference agreement includes $9,900,000 for an adoption

awareness program as authorized in the Child Health Act of 2000.

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The conference agreement includes $10,000,000 for authorized

health-related activities of the Denali Commission.

The conference agreement includes $139,246,000 for program management instead of $128,123,000 as proposed by the House and

$135,766,000 as proposed by the Senate.

The conferees include the following amounts for the following

projects and activities in fiscal year 2001: —$230,000 for the Illinois Poison Center;

—$250,000 for the University of Alaska to establish an

INPSYCH Center to train Alaska natives as psychologists to practice in Alaska villages; —$500,000 for the University of Alaska, Anchorage to recruit

and train nurses;

—$700,000 to support the efforts of the American Federation

for Negro Affairs Education and Research Fund of Philadelphia; —$900,000 for Northeastern University in Boston, Massachusetts to train doctors to serve low-income communities; and

—$900,000 for Des Moines University Osteopathic Medical

Center for development of a model program for training and education in the field of geriatrics.

The Child Health Act of 2000 authorizes oral health activities

intended to improve the oral health of children under six years of

age who are eligible for services provided under a Federal health

program. These activities should increase the utilization of dental

services by such children and decrease the incidence of early childhood and baby bottle tooth decay. The conferees are supportive of

these efforts.

CENTERS FOR DISEASE CONTROL AND PREVENTION

DISEASE CONTROL, RESEARCH, AND TRAINING

The conference agreement includes $3,868,027,000 for disease control, research, and training instead of $3,386,369,000 as proposed by the House and $3,251,996,000 as proposed by the Senate.

The conference agreement includes $175,000,000 for equipment, construction, and renovation of facilities as proposed by the

Senate instead of $145,000,000 as proposed by the House. The conference agreement includes bill language to allow CDC to enter

into a single contract or related contracts for the full scope of development and construction of facilities as proposed by the Senate.

The House bill provided this authority only for laboratory building

18.

The conference agreement includes a total of $97,354,000 for

the National Center for Health Statistics instead of $86,759,000 as

proposed by the House and $105,110,000 as proposed by the Senate. The conference agreement also includes bill language designating $71,690,000 of the total to be available to the Center under

the Public Health Service Act one percent evaluation set-aside as

proposed by the House instead of $91,129,000 as proposed by the

Senate.

The conference agreement includes bill language to allow funds

recouped from fiscal years 2000 and 2001 obligations for the influenza vaccine stockpile to be used in fiscal year 2001 for childhood

vaccine purchase.

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The conference agreement does not include language proposed

by the Senate to allow funds made available for section 317A of the

Public Health Service Act to be used at Early Head Start program

sites. The House bill contained no similar provision.

The conference agreement consolidates the salaries and expenses of CDC into a single account. Salaries and expenses activities encompass all non-extramural activities with the exception of

program support services, centrally managed services, and buildings and facilities. The agency may allocate administrative funds

for extramural program activities according to its judgment. Funds

should be apportioned and allocated consistent with the table, and

any changes in funding are subject to the normal notification procedures.

The conference agreement includes $175,969,000 for the prevention health services block grant instead of $175,964,000 as proposed by the House and $175,124,000 as proposed by the Senate.

Within the total provided, $44,225,000 is for rape prevention and

education activities previously funded through the Crime Trust

Fund.

The conference agreement includes $23,012,000 for prevention

centers instead of $23,000,000 as proposed by the House and

$14,080,000 as proposed by the Senate.

The conferees include $700,000 for the Roger Williams Medical

Center Healthlink program in Providence, Rhode Island to develop

and implement a comprehensive health promotion initiative for

senior retirees.

The conference agreement includes $529,461,000 for childhood

immunization instead of $472,966,000 as proposed by the House

and $499,005,000 as proposed by the Senate. Included in this

amount is an increase of $42,487,000 for operation/infrastructure

activities, $5,000,000 for global polio eradication activities, and

$20,000,000 for vaccine purchase. The conferees intend that funds

available for vaccine purchase are for all currently licensed and

recommended vaccines. In addition, the Vaccines for Children

(VFC) program funded through the Medicaid program is expected

to provide $469,054,000 in vaccine purchases and distribution support in fiscal year 2001, for a total program level of $1,016,528,000.

The conferees recommend that CDC discontinue immunization

incentive grants and that CDC award the $33,000,000 previously

committed for this program as part of the entire operations funding

to support State grantees cumulative core budgets. Incorporating

incentive grants into States’ base operations award would allow

more States to receive a greater proportion of their core budget and

help improve their overall immunization coverage levels. The conferees recommend that CDC use grant funding made available due

to the completion of Congressionally-directed demonstration

projects to ensure that all States receive at least the same level of

operational funding received in fiscal year 2000, thereby holding

them harmless during this funding shift from a formula based approach.

Funding for measles vaccine for supplemental measles immunization campaigns and epidemiological, laboratory, and programmatic/operational support to the World Health Organziation

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and its member countries is included in measles eradication funding not polio eradication funding as identified in the Senate report. The conference agreement includes $767,246,000 for HIV/AIDS instead of $673,367,000 as proposed by the House and

$640,000,000 as proposed by the Senate. Included in this amount

is an additional $3,000,000 to maintain the current hematologic

and blood safety program commitments and to expand support for

the treatment centers network in carrying out initiatives to address

the complications of hemophilia, including HIV/AIDS, blood safety

surveillance and monitoring, and the needs of women with bleeding

disorders.

The conferees recognize the devastating impact of the global

AIDS epidemic upon individuals, families and communities in Africa and Asia and have included $104,527,000 for global HIV/AIDS

activities at CDC, which shall be available until September 30,

2002. This amount is an increase of $69,527,000 over the fiscal

year 2000 appropriation. With funding received in fiscal year 2000,

CDC, in collaboration with USAID and other federal agencies, has

begun to combat the AIDS epidemic in 14 of the hardest hit countries in Africa and in India. The conferees urge CDC to continue

to work in collaboration with USAID and other departments such

as the Department of Defense and the Department of Labor, and

other DHHS agencies especially HRSA, as well as international

agencies, non-governmental organizations and country governments to halt the spread of the epidemic and lessen its impact. In

those countries where CDC already has a presence, CDC, in collaboration with USAID and HRSA, should assist in implementing

country-wide care and prevention programs. This will include

partnering with HRSA to develop health care services focused on

mobilizing communities for the development of palliative care,

basic treatment, and support services. In addition, CDC should

begin to assist other areas at high risk for severe epidemics including other African countries, Southeast Asia, and the Caribbean/

Latin American region. Finally, CDC should support targeted antiretroviral treatment demonstration projects in countries where sufficient care and treatment infrastructures exist. Within the total

for international HIV/AIDS activities, the conferees provide

$3,000,000 through CDC to support HRSA activities aimed at improving professional education and training relating to this initiative. The conferees have also included language to extend certain

authorities of the Department of State to the Secretary of HHS so

that CDC may use State’s administrative systems for personnel,

contracting and procurement, and for limited renovation or construction of essential program facilities.

As a preventive vaccine offers the world’s best hope for turning

the tide against the global AIDS pandemic, and since international

collaborations are essential for this goal, the conferees encourage

CDC to work collaboratively with the International AIDS Vaccine

Initiative and other global organizations to accelerate the development and testing of promising vaccine candidates.

The conferees have provided additional funds to respond to the

unmet needs identified through the community planning process.

These funds are to augment the cooperative agreements between

CDC and State and local health departments.

126

The conferees recommend that CDC allocate an increase to

evaluate HIV prevention service delivery programs to improve

funding decision-making and to implement more rapid effective

transfer of technology to community based service delivery organizations and health departments. Approximately half of this amount

should support evaluation activities to track service delivery by

community based organizations, and utilize cost-effectiveness analysis in HIV prevention. The remaining funds would be used to expand technology transfer regarding HIV prevention through activities such as regional technical assistance, technology transfer, and

training for the purpose of providing links between evidence-based

HIV prevention science and public health departments, community

planning groups, healthcare providers, and prevention science providers.

The conference agreement includes $88,000,000 to fund CDC

activities that are designed to address the trend of the HIV/AIDS

epidemic in communities of color, based on the most recent estimated living AIDS cases, HIV infections and AIDS mortality

among ethnic and racial minorities as reported by the CDC. The

program initiative includes funds for the ’’Know Your Status’’ campaign. The conferees have included funds for the Directly Funded

Minority Community Based Organization program to fund grant

applications from minority organizations with a history of providing services to communities of color to develop and expand HIV

prevention interventions and services targeted to highly impacted

minority men, women, youth and sub-populations. Funds are also

included to create grants under the CDC Community Development

Program to support needs assessments and enhance community

planning processes to integrate HIV, STD, TB, substance abuse

prevention and treatment, care and community development within

communities of color. Funds are to be allocated for technical assistance programs for grantees under the Directly Funded Minority

CBO program, for Faith-Based Initiative Programs including community based organizations interested in developing coalitions and

partnerships with faith based institutions. Funds are also provided

for CDC’s HIV surveillance activities to better track the epidemic

and target resources. These funds are to be allocated based on program priorities identified in the previous fiscal year as well as new

priorities.

The conference agreement includes $126,528,000 for tuberculosis (TB) instead of $120,364,000 as proposed by the House and

$113,413,000 as proposed by the Senate. The conferees intend that

the increase over the President’s request be used to reduce the

number of foreign born TB cases contributing to the U.S. caseload,

strengthen domestic TB control programs, and provide preventive

therapy to individuals who have latent TB infection and are highrisk for developing active, infectious TB.

The conferees include $184,000 for Onondaga County, New

York Health Department to establish a prospective tuberculosis

control program for Central New York industries.

The conference agreement includes $148,256,000 for sexually

transmitted diseases instead of $136,743,000 as proposed by the

House and $135,978,000 as proposed by the Senate. The conferees

provide $6,000,000 over fiscal year 2000 funding for chlamydia and

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$14,934,000 over fiscal year 2000 funding for syphilis. Except for

the administrative contribution required by CDC, all of this increase for chlamydia must be spent on appropriate services to patients to prevent chlamydia infections using the existing partnership between STD and family planning. The conferees recognize

that given the problem of re-infection and other factors, some of

these funds may be utilized to provide screening and treatment to

males as deemed appropriate by CDC. The conference agreement includes $417,039,000 for chronic and environmental diseases instead of $317,374,000 as proposed by

the House and $319,553,000 as proposed by the Senate. Programs

within this account are funded (including salaries and expenses) at

the following levels:

Environmental Disease Prevention:

Arctic populations ........................................................................... $390,000

Asthma ............................................................................................ 27,906,362

Autism ............................................................................................. 6,734,000

Birth defects .................................................................................... 17,608,000

Disabilities prevention ................................................................... 15,276,000

Environmental lab and health activities ...................................... 46,593,117

Fetal alcohol syndrome .................................................................. 9,551,843

Folic Acid ......................................................................................... 2,500,000

Hanford Study ................................................................................ 1,679,000

Limb Loss ........................................................................................ 3,352,000

Mild mental retardation ................................................................. 4,396,000

Newborn Hearing Screening .......................................................... 6,315,576

Pfisteria ........................................................................................... 9,081,000

Radiation ......................................................................................... 1,949,000

Spina bifida ..................................................................................... 2,155,000

Volcanic emissions .......................................................................... 97,000

Subtotal, Environmental ............................................................ 155,583,898

Chronic Disease Prevention & Health Promotion:

Arthritis and healthy aging ........................................................... 11,889,000

Behavior risk factor surveillance .................................................. 1,918,000

Cancer registries ............................................................................. 36,434,297

Cardiovascular diseases ................................................................. 35,038,825

Chronic fatigue syndrome .............................................................. 7,000,000

Colorectal cancer ............................................................................ 8,901,345

Community health promotion ........................................................ 7,164,000

Comprehensive cancer control ....................................................... 3,096,000

Diabetes ........................................................................................... 58,344,038

Epilepsy ........................................................................................... 4,074,255

Iron overload ................................................................................... 495,000

Nutrition/Physical activity ............................................................. 16,222,438

Oral health ...................................................................................... 8,460,000

Prevention of teen pregnancies ..................................................... 13,258,000

Prostate cancer ............................................................................... 11,173,000

School health program ................................................................... 9,775,000

Skin cancer ...................................................................................... 1,647,000

Tobacco (smoking and health) ....................................................... 103,355,034

Women’s health .............................................................................. 1,500,000

Ovarian cancer ................................................................................ 2,625,870

Subtotal, Chronic ........................................................................ 342,371,102

Consolidated program administration .......................................... ¥80,916,000

Total, Chronic & Environmental ............................................... 417,039,000

Within the total provided for arthritis, the conferees urge CDC

to continue research, surveillance, and health communication efforts, including the impact of lupus on women, within the framework of the National Arthritis Action Plan.

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Within the total provided for cardiovascular diseases, the conferees expect CDC to enhance professional and public awareness

outreach activities on pulmonary hypertension.

Within the total provided for nutrition/physical activity, the

conferees expect CDC to address overweight, obesity, nutrition, and

sedentary lifestyles by supporting state-based programs, by training health professionals to recognize the signs of obesity and recommend prevention activities, by educating the public concerning

overweight or obesity through public education campaigns, and by

developing strategies for use at worksites and in community health

and other community settings.

Native American populations have a diabetes rate of four times

the national average with Hispanics following a close second. The

conferees urge CDC to fund pilot projects to examine nutrition and

prevention protocols for these populations.

The conferees look forward to the completion of the evidencebased report being developed by CDC and the Agency for

Healthcare Research and Quality that will assess the elements of

epilepsy treatment as they relate to clinical outcomes. CDC is expected to disseminate the findings of this report to people with epilepsy, health care professionals, and the general public. The Director should be prepared to provide the next steps required to implement an early intervention strategy including diagnosis, treatment,

and referral recommendations at the fiscal year 2002 appropriations hearing.

The conferees are encouraged that CDC plans to convene a

meeting to develop a national prostate cancer public health agenda.

The conferees urge the agency to continue its work with voluntary

public and professional organizations to develop and implement a

national educational and outreach campaign with special attention

to minority and under served populations. CDC should be prepared

to report on its prostate cancer programs at the fiscal year 2002 appropriations hearing.

The conferees urge CDC to give full and fair consideration to

a proposal to develop a diversified screening demonstration project

with the Dean and Betty Gallo Prostate Cancer Center at the Cancer Center of New Jersey and the Men’s Health Network designed

to determine effective methods for encouraging men in the underserved population to participate in colorectal screening and screening for other high risk diseases.

The conferees urge CDC to provide additional support for

Johns Hopkins University to develop the Center for Limb Loss Research.

The conferees include the following amounts for the following

projects and activities in fiscal year 2001.

Within the total provided for asthma, $213,000 is for the Buffalo General Foundation, Buffalo, New York, for a study examining

the impact of air pollution on asthma rates and respiratory illness

and $921,000 is for Forum Health of Youngstown, Ohio for a pediatric/adolescent asthma school program.

Within the total provided for autism, $313,000 is for the Marshall University autism center in Huntington, West Virginia;

$921,000 is for the New Jersey Epidemiologic Surveillance and InVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00132 Fmt 6601 Sfmt 6601 E:\HR\OC\HR1033.001 pfrm03 PsN: HR1033
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tegration Center for Children with Autism; and $3,000,000 is for

the Center of Excellence in Autism.

Within the total provided for birth defects, $147,000 is for the

Birth Defects Monitoring and Prevention Center at the University

of South Alabama and $461,000 is for the University of Louisville

Craniofacial Birth Defects Research Center.

Within the total provided for cardiovascular diseases, $46,000

is for the Sisters of Charity Health Care System and Staten Island

University Hospital’s Heart Center; $500,000 for the Michael

DeBakey Institute for Comparative Cardiovascular Science;

$929,000 is for the Kettering Medical Center Healthy Hearts 2001

Initiative; and $4,500,000 is for The Paul Coverdell National Acute

Stroke Registry to track and improve the delivery of care to patients with acute stroke. The conferees direct CDC to consult with

the National Institute for Neurological Disorders and Stroke at the

National Institutes of Health, the Brain Attack Coalition, and other

professional organizations experienced in the treatment of stroke,

in developing specific data points for collection as well as appropriate benchmarks for analyzing care. The conferees further direct

CDC to include hospitals, universities, state and local health departments, and other appropriate partners to design and pilot test

prototypes, that will measure the delivery of care to patients with

acute stroke in order to provide real-time data and analysis to reduce death and disability from stroke and improve the quality of

life for acute stroke survivors.

Within the total provided for colorectal cancer, $184,000 is for

the Sisters of Charity Health Care System to ensure that patients

have access to early detection of gastro-intestinal cancers.

Within the total provided for community health promotion, $553,000 is for the Baltimore City Health Department, Maryland,

to establish a Center for Chronic Diseases and $900,000 is for the

University of Texas, Dallas, for the Southwestern Medical Center,

National Multiple Sclerosis Training Center.

Within the total provided for comprehensive cancer control,

$425,000 is for Miami-Dade County, Florida for the Health Choice

Network to administer the Jesse Trice Cancer Prevention Project;

$921,000 is for an Appalachian cancer demonstration project at the

East Tennessee State University James H. Quillen College of Medicine to address cancer care in the rural Appalachian region;

$900,000 is for the University of Rhode Island Cancer Prevention

Research Center to provide interactive interventions of at-risk populations; and $850,000 is for the University of Texas M.D. Anderson Cancer Center in Houston, Texas, for a comprehensive cancer

control program to address minority and medically undeserved populations.

Within the total provided for diabetes, $230,000 for the Fresno

Community Hospital and Medical Center to support a minority-focused diabetes outreach program; $213,000 is for the Diabetes-Endocrinology Center of Western New York in Buffalo for community

education and outreach efforts to improve the early detection, prevention and control of diabetes; $276,000 is for a comprehensive diabetic research, education and treatment program at Louisiana

State Health Sciences Center in Shreveport; $425,000 is for the

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search and education programs at the center for diabetes in Puerto

Rico; $1,000,000 is for the National Diabetes Prevention Center in

Gallup, New Mexico to continue the prevention center for American

Indians; and $1,843,000 is for the Center for Diabetes and Prevention Control at Texas Tech University Health Sciences Center to

provide a national model of diabetes outreach, education, prevention and care.

Within the total provided for disabilities prevention,

$3,000,000 is to establish a paralysis information and support center with the Christopher Reeve Paralysis Foundation and to enhance efforts on the prevention of secondary complications to improve outcomes and the quality of life for people living with paralysis.

Within the total provided for environmental health activities,

$213,000 is for the San Antonio Metropolitan Health District to expand an assessment of human exposure to environmental contaminants near Kelly Air Force Base, Texas; $400,000 is for the establishment of a National Mass Fatalities Training Response Center,

at Kirkwood Community College in Cedar Rapids, Iowa; $500,000

is for the State of Alaska’s Department of Health and Social Services to study environmental contaminants; $850,000 for a joint

United States/Vietnamese study on the effects of agent orange;

$850,000 for the University of North Carolina at Chapel Hill to

support additional research on animal modeling of chronic human

diseases such as cancer, fibrosis, hypertension, and other diseases;

and $1,800,000 for the Center for Environmental Medicine and

Toxicology at the University of Mississippi Medical Center in Jackson, Mississippi.

Within the total provided for nutrition/physical activity,

$250,000 is for the National Youth Fitness and Obesity Institute

at the University of Northern Iowa; $298,000 is for the University

of North Carolina at Greensboro, North Carolina, Institute for

Health, Science and Society for the Children’s Healthy Life Skills

Initiative; and $461,000 is for the Grenada Lake Medical Center in

Grenada, Mississippi to conduct a demonstration on physical fitness in rural areas.

Within the total provided for school health program, $140,000

is for Proviso East High School in Maywood, Illinois in collaboration with Loyola University of Chicago and the Cook County Board

of Health to improve the delivery of on-site primary care, preventive care, and health outreach to low-income parents and students

in the community.

Within the total provided for tobacco, $900,000 is for the University of Rhode Island Tobacco Cessation Program to compare

media and policy interventions on smoking cessation and adoption

of no smoking policies in the home.

The conference agreement includes $173,928,000 for breast and

cervical cancer screening instead of $160,941,000 as proposed by

the House and $167,016,000 as proposed by the Senate. The conference agreement includes bill language to allow the agency to expand the WISEWOMAN program to not more than 15 States as

proposed by the Senate. The House bill allowed the agency to expand the program to not more than 10 States.

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The conferees urge the CDC to give full and fair consideration

to proposals from Access Community Health Network in Chicago

for delivering breast and cervical cancer screening and follow-up

services to minority women.

The conferees include the following amounts for the following

projects and activities in fiscal year 2001:

—$92,000 to evaluate the high incidence of breast cancer in

DuPage County, Illinois;

—$213,000 for Marin County, California to evaluate the high

incidence of breast cancer in the San Francisco Bay Area;

—$1,671,000 for the Healthcare Association of New York State

for a breast cancer demonstration project to develop an integrated

model for the delivery of comprehensive breast cancer services in

a coordinated setting.

The conference agreement includes $181,701,000 for infectious

diseases instead of $111,622,000 as proposed by the House and

$112,000,000 as proposed by the Senate. Within the total provided,

$25,000,000 is for the establishment of partnerships between CDC

and academic institutions and State and local public health departments to carry out pilot programs for antimicrobial resistance detection, surveillance, education and prevention, and to conduct research on resistance mechanisms and new or more effective antimicrobial compounds.

The conferees commend CDC for its initiative to work with

hospitals in identifying and responding to the risk of hospital-acquired infections and the emergence of antimicrobial resistance in

the pediatric population, including its successful development of

the largest hospital-based infection control network in the country.

The conferees encourage CDC to continue its effort to work with

pediatric hospital networks to improve infection control efforts for

children, particularly high-risk children.

Within the total provided, $25,000,000 is to continue planned

activities and to expand efforts to control the West Nile virus, an

increase of $20,000,000 above the President’s request. The conferees direct CDC to ensure an equitable distribution of these funds

based on the impact of the West Nile virus in particular states and

localities during calendar year 2000. The criteria should include:

the date of first positive findings, intensity of wildlife transmission,

occurrence of human illness, geographic extent of positive findings,

laboratory testing/activities, and employment of control measures,

including spraying.

Also within the total provided is $34,577,000 for NEDSS/EID

and an increase of $4,000,000 for malaria programs.

The conferees urge CDC to give full and fair consideration to

a proposal by Advance Paradigm to demonstrate the role of provider utilization of information technology to improve patient safety through management of polypharmacy outcomes.

The conferees include the following amounts for the following

projects and activities in fiscal year 2001:

—$149,000 for Case Western Reserve University, Cleveland,

Ohio for prion disease surveillance;

—$250,000 for the Institute for Clinical Evaluation for the reduction of medical errors through the development and demonstraVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00135 Fmt 6601 Sfmt 6601 E:\HR\OC\HR1033.001 pfrm03 PsN: HR1033
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tion of virtual reality medical technology simulation for training

health care workers in medical procedures; —$300,000 for the Fletcher Allen Health Care, Burlington,

Vermont for a demonstration to reduce medical errors;

—$500,000 for the Iowa Department of Public Health for a

demonstration to identify and develop strategies to reduce adverse

medical events;

—$961,000 for the University of Texas Medical Branch, Galveston, Texas, Tyler Border Infectious Disease Monitoring Program;—$921,000 for the Emerging Infectious Diseases Center at the

University of New Mexico in Albuquerque to develop a networkbased surveillance system; and —$1,843,000 to develop a comprehensive, statewide electronic

public health reporting system in the State of Delaware. The conference agreement includes $34,933,000 for lead poi- soning prevention instead of $31,019,000 as proposed by the House

and $30,978,000 as proposed by the Senate. CDC is encouraged to

work with Early Head Start in developing a strategy identify and

target resources for childhood lead poisoning prevention to highrisk populations. The conference agreement includes $77,332,000 for injury con- trol instead of $66,298,000 as proposed by the House and

$69,000,000 as proposed by the Senate. The conferees have provided an additional $3,000,000 for CDC

to strengthen its focus on violence by supporting initiatives directed at the prevention of physical and emotional injuries associated with child abuse and neglect. The conferees note that CDC

convened a group of experts on child maltreatment to identify future directions for prevention. Increased funds are provided to

begin to improve information on child maltreatment through mechanisms such as state-based surveillance, the development of uniform definitions, and survey information from victims and perpetrators. The conferees also support the evaluation and dissemination of effective interventions and urge CDC to develop and distribute an evaluation primer, a resource guide for evaluated child

maltreatment interventions, and educational materials on child

maltreatment prevention.

The conferees include $2,000,000 to support a joint effort by

CDC and the Consumer Product Safety Commission to identify

products that contribute to common injuries. The conferees understand that this effort includes collecting information from hospitals

that currently offer 24-hour trauma service. The conferees agree

that any research and/or study undertaken shall address all products contributing to injuries found in these areas and that all existing restrictions on CDC funding and the Consumer Product Safety

Commission apply to all aspects of this effort.

CDC is urged to conduct evaluation research on sleepiness,

sleep deprivation, and injury prevention associated with fatigue.

The conferees concur with Senate report language regarding

the development of population-based injury reporting systems and

recognize the efforts of the University of Maryland, College Park.

The conferees include the following amounts for the following

projects and activities in fiscal year 2001:

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—$92,000 for the Rebuild program at Inova Fairfax Hospital

that will enable trauma system doctors and nurses to work effectively with the families of trauma victims; —$200,000 for the National Children’s Center of Rural Agricultural Health;

—$250,000 for the American Trauma Society for a trauma information and exchange program; —$425,000 for the National SAFE KIDS Campaign, Washington, DC to improve child health through parental training and

technical assistance in public housing sites and communities; —$750,000 for an Alaska Injury Prevention Center of which $250,000 is for collaboration with the State of Alaska Department

of Health and Social Services and $500,000 is to develop a statewide childhood injury prevention program; —$850,000 for the Kennedy Krieger National Center for Research on Behavior of Children and Youth, Baltimore, Maryland for

a youth violence prevention project; and —$921,000 for the Save A Life Foundation to expand the training of its basic life supporting first aid program. The conference agreement includes $119,375,000 for the national occupational safety and health program instead of

$86,346,000 as proposed by the House and $105,000,000 as proposed by the Senate.

The conferees provide an increase over the request of $10,000,000 for the National Occupational Research Agenda,

$9,000,000 for respirator research and personal protective technology, and $1,000,000 for Education and Resource Centers.

The conferees urge NIOSH to be supportive of developing a Pacific basin focus at the University of Hawaii at Hilo. The conferees include $723,000 for Purdue University in West

Lafayette, Indiana, to support the Construction Safety Alliance for

a national program in construction safety and health. The conference agreement includes $174,851,000 for epidemic services instead of $155,338,000 as proposed by the House and

$30,254,000 as proposed by the Senate. Within the total provided,

$125,000,000 is for a National Campaign to Change Children’s

Health Behaviors as described in the House report, including promoting mental health. The campaign is designed to clearly communicate messages that will help kids develop habits that foster good

health over a lifetime. The conferees expect the goals of the campaign will also address the growing problem of obesity in this country. By displacing the opportunity for young people to make bad

choices during after-school and weekend hours (such as being physically inactive) with opportunities to engage in positive goal-directed activities (such as sports and other physical activity) the

campaign will reduce the proportion of children and adolescents

who are overweight and obese.

The conferees commend CDC’s leadership role in landmine victim assistance programs and have provided an additional

$5,000,000 to support expansion of the landmine survivor program

as well as the partnership with the Landmine Survivors Network

to further develop peer support networks that address the rehabilitative and socioeconomic needs of landmine victims in mine affected countries.

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The agreement includes $14,000,000 for the safe motherhood

initiative. The conferees urge CDC to further its efforts to prevent

deaths and complications during pregnancy and reduce racial disparities, with special focus on complications related to a lack of access to prenatal care and community support.

The conferees include the following amounts for the following

projects and activities in fiscal year 2001:

—$9,000 for the Cross Road Foundation for a pilot project to

sponsor singles mother self-help groups to improve parenting skills;

—$37,000 for Victory Memorial Hospital in Brooklyn, New

York to expand its prenatal program for uninsured, pregnant

women;

—$100,000 for the Northern New Jersey Maternal Child

Health Consortium;

—$184,000 for the Children’s Hospital of Buffalo for activities

related to intestinal motility disorders in infants;

—$500,000 for the University Medical Center of Southern Nevada for Maternal and Neonatal Intensive Care;

—$900,000 for Sudden Infant Death Syndrome Resources, Inc.,

Missouri Bootheel Healthy Start project;

—$1,000,000 for the Prince George’s County Health Department for Infant Mortality Prevention;

—$1,020,000 for Jackson State University, Office of Research

and Development to establish an epidemiological research institute;

—$1,704,000 is for the University of Arizona, College of Public

Health to continue comprehensive research and evaluation of the

unique public health risks along the U.S.-Mexico border; and

—$3,001,000 for the Lawton and Rhea Chiles Center for

Healthy Mothers and Babies Friendly Access program to improve

the quality of perinatal health service delivery.

The conference agreement includes $13,593,000 for prevention

research as proposed by the House instead of $13,386,000 as proposed by the Senate.

The conference agreement includes $35,009,000 for health disparities demonstrations instead of $32,184,000 as proposed by the

House and $27,000,000 as proposed by the Senate.

The conference agreement includes $669,130,000 for program

administration instead of $648,774,000 as proposed by the House

and $626,228,000 as proposed by the Senate.

The conferees do not include language proposed by the Senate

to reduce administrative expenses of the CDC. The House bill contained no similar provision.

NATIONAL INSTITUTES OF HEALTH

NATIONAL CANCER INSTITUTE

The conference agreement includes $3,757,242,000 for the National Cancer Institute instead of $3,793,587,000 as proposed by

the House and $3,804,084,000 as proposed by the Senate.

NCI is encouraged to take appropriate steps to take full advantage of scientific opportunities that may be available from using

genealogical databases to understand, diagnose, treat and prevent

cancer and other diseases.

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NATIONAL HEART, LUNG AND BLOOD INSTITUTE

The conference agreement includes $2,299,866,000 for the National Heart, Lung and Blood Institute instead of $2,321,320,000 as

proposed by the House and $2,328,102,000 as proposed by the Senate.

The conferees support research on the interaction of tuberculosis and AIDS conducted through the Institute’s AIDS research

program and encourage enhanced research in this area. The conferees also urge NHLBI to continue research and development efforts in the area of polynitroxylated hemoglobin, a blood cell substitute being developed to provide oxygen carrying capacity and

adequate blood flow to the critically injured.

NATIONAL INSTITUTE OF DENTAL AND CRANIOFACIAL RESEARCH

The conference agreement includes $306,448,000 for the National Institute of Dental and Craniofacial Research instead of

$309,007,000 as proposed by the House and $309,923,000 as proposed by the Senate.

The conferees are concerned about the exceptionally high rate

of severe dental caries suffered by American Indian children and

encourage NIDCR to support long-term research of the etiology and

pathogenesis of dental caries in these populations. The conferees

also encourage NIDCR to conduct research on effective ways to control severe caries in American Indian children through all available

mechanisms, as appropriate, including clinical trials.

NATIONAL INSTITUTE OF DIABETES AND DIGESTIVE AND KIDNEY

DISEASES

The conference agreement includes $1,303,385,000 for the National Institute of Diabetes and Digestive and Kidney Diseases instead of $1,315,530,000 as proposed by the House and

$1,318,106,000 as proposed by the Senate.

The conferees are concerned that the urology research effort is

not addressing the large public health impact of urological diseases

and conditions. NIDDK is strongly urged to enhance its research

initiatives in urology.

The conferees encourage NIDDK to coordinate with the Office

of Dietary Supplements on their findings from the chromium and

diabetes nutrition conference held in November of 1999. The Institute is encouraged to enhance basic research grants to examine cellular glucose metabolism and the factors that influence that metabolism, especially the influence of chromium-containing compounds

on glucose receptors.

The conferees encourage NIDDK to expand research efforts for

treatments for mucopolysaccharidosis (MPS). The conferees recognize the recent progress in some areas of MPS research, however

the persistent challenges in development of effective treatments remain. NIDDK is encouraged to work with other Institutes, especially NINDS and NICHD, to research effective therapies.

The conferees are concerned regarding reports that funding for

two of the four recently established Interdisciplinary Research Centers have been significantly reduced. The conferees urge NIDDK,

136

consistent with the PKD Strategic Plan, to fully fund the four

Interdisciplinary Research Centers.

The conferees are pleased with the growth of the NIDDK research portfolio on inflammatory bowel disease (IBD) and the focus

on IBD in several of the Institute’s digestive diseases centers.

Moreover, several new initiatives are planned, including efforts to

create an IBD genetics consortium in followup to a meeting NIDDK

held in March 2000 on the genetics of IBD. The conferees are hopeful that IBD will be one of the diseases to be studied in the soonto-be-established NIDDK digestive diseases trial network. The conferees urge the Institute to foster research on genetic, environmental and other factors that offer promise of shedding light on the

underlying causes of immunologic abnormalities and inflammatory

mechanisms in IBD, and that may help point the way to more effective therapeutic and preventive strategies.

NATIONAL INSTITUTE OF NEUROLOGICAL DISORDERS AND STROKE

The conference agreement includes $1,176,482,000 for the National Institute of Neurological Disorders and Stroke instead of

$1,185,767,000 as proposed by the House and $1,189,425,000 as

proposed by the Senate.

The conferees are aware of the efforts of NINDS to identify the

gene that causes Mucolipidosis Type IV (ML–4), a debilitating genetic metabolic disorder that prevents normal development in children. The conferees encourage NINDS to consider conducting workshops and expand research efforts in this area.

The conferees urge NINDS to enhance research activities on

the development or adaptation of electrical stimulation devices to

activate the reflexes of the paralyzed muscles that open the airway

during breathing in cases of paralyzed vocal cords due to trauma

or neurodegenerative disease.

The conferees encourage NINDS to continue their collaborative

efforts with advocacy groups to develop treatments for Friedreich’s

ataxia.

Recent advances in Spinal Muscular Atrophy (SMA) research

have found that activation of the SMN2 gene may benefit treatment of SMA. The conferees urge NINDS to develop a SMA basic

and clinical research portfolio through all available mechanisms, as

appropriate, including clinical trials of drug compounds capable of

activating SMN2 expression. The conferees also encourage the Institute to explore areas of promising research identified in the 2000

Families of SMA International Workshop.

Mitochondrial disorders comprise a panoply of progressive,

neurodegenerative syndromes affecting multiple organ systems and

causing mild to severe disabling neurological complications. At

present there is no cure or therapies that are effective. It is recognized that adult onset disorders such as Parkinson’s, Alzheimer’s,

and Huntington’s diseases may have an associated mitochondrial

defect. The conferees urge NINDS and other relevant Institutes to

explore the potential applicability of promising new therapies for

these diseases in treating patients with mitochondrial disorders.

The conferees are pleased to note that progress continues to be

made both with respect to the treatment and in our understanding

of the cause of multiple sclerosis. Recent studies have provided the

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best evidence to date that the disease is caused by over-reactivity

of a person’s own immune response. Based on these advances, the

conferees encourage NINDS to expand its efforts to test new, innovative therapies. Research strategies should include the use of MRI

and other surrogate biomarkers to help determine the stage of the

disease, to evaluate effective treatments, and to improve diagnosis.

NATIONAL INSTITUTE OF ALLERGY AND INFECTIOUS DISEASES

The conference agreement includes $2,043,208,000 for the National Institute of Allergy and Infectious Diseases instead of

$2,062,126,000 as proposed by the House and $2,066,526,000 as

proposed by the Senate.

NATIONAL INSTITUTE OF GENERAL MEDICAL SCIENCES

The conference agreement includes $1,535,823,000 for the National Institute of General Medical Sciences instead of

$1,548,313,000 as proposed by the House and $1,554,176,000 as

proposed by the Senate.

NATIONAL INSTITUTE OF CHILD HEALTH AND HUMAN DEVELOPMENT

The conference agreement includes $976,455,000 for the National Institute of Child Health and Human Development as proposed by the Senate instead of $984,300,000 as proposed by the

House.

The conferees are supportive of plans to conduct a national longitudinal study of environmental influences on children’s health.

The Director of NICHD is urged to establish a consortium of representatives from appropriate Federal agencies, including CDC,

EPA and other NIH Institutes to plan and initiate pilot studies

that will provide the information necessary to develop and implement the full national longitudinal study. To this end, the conferees have provided funds to support this initiative and look forward to learning of the progress made during the fiscal year 2002

appropriations hearing.

NATIONAL EYE INSTITUTE

The conference agreement includes $510,611,000 for the National Eye Institute instead of $514,673,000 as proposed by the

House and $516,605,000 as proposed by the Senate.

Recent progress in genetics research has opened up the potential for gene-based approaches for the prevention and treatment of

retinal and other blinding diseases. Gene-based therapies for several forms of retinal degeneration have been successfully demonstrated in laboratory animal studies, and preclinical work has

satisfied patient safety and ethical issues. The conferees urge NEI

to accelerate the development of these new gene-based approaches

through all available mechanisms, as appropriate, including clinical

trials.

NATIONAL INSTITUTE OF ENVIRONMENTAL HEALTH SCIENCES

The conference agreement includes $502,549,000 for the National Institute of Environmental Health Sciences instead of

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$506,730,000 as proposed by the House and $508,263,000 as proposed by the Senate.

The causes of breast cancer are largely unknown. There is little agreement in the scientific community on how the environment

impacts breast cancer. While studies have been conducted on the

links between environmental factors like diet, pesticides, and electromagnetic fields, no conclusive evidence exists. The conferees encourage NIEHS to enhance research efforts to study the links between the environment and breast cancer through all available

mechanisms, as appropriate, including establishing centers of excellence.

NATIONAL INSTITUTE ON AGING

The conference agreement includes $786,039,000 for the National Institute on Aging instead of $790,299,000 as proposed by

the House and $794,625,000 as proposed by the Senate.

NATIONAL INSTITUTE OF ARTHRITIS AND MUSCULOSKELETAL AND SKIN

DISEASES

The conference agreement includes $396,687,000 for the National Institute of Arthritis and Musculoskeletal and Skin Diseases

instead of $400,025,000 as proposed by the House and

$401,161,000 as proposed by the Senate.

Osteogenesis Imperfecta (OI), more commonly known as Children’s Brittle Bone Disease, is a rare genetic disorder for which

there is presently no cure. The conferees strongly encourage NIH

to expand its support for research into the causes, diagnosis, treatment, prevention, and eventual cure for OI and to coordinate public

research efforts with those supported by the private sector. The Director of NIAMS should be prepared to testify on this issue at the

fiscal year 2002 appropriations hearing.

Important strides have been made with the establishment of

the Osteoporosis and Related Bone-Disease National Resource Center. The conferees urge NIAMS to expand support for the resource

center’s current activities, including developing and disseminating

information based on current research findings that improve

knowledge and understanding of the prevention, diagnosis, and

treatment of osteoporosis and related bone diseases, implementing

and evaluating model education programs to enhance bone health

and reduce future risk of osteoporosis, and supporting public and

private efforts to broaden the base of knowledge about osteoporosis

and related bone diseases.

The conferees commend NIAMS for its growing support of research on rheumatic diseases of childhood, including the recent

opening of a new Pediatric Rheumatology Clinic on the NIH campus. However, the conferees are concerned about the cadre of pediatric rheumatologists who are trained to treat and study these diseases. NIAMS is therefore encouraged to work with the Secretary

of HHS and other PHS components, as appropriate, to assist in

evaluating the status of the pediatric rheumatology workforce. In

particular, the Institute is encouraged to take advantage of opportunities to support loan repayment for researchers working in the

area of childhood rheumatic diseases.

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NATIONAL INSTITUTE ON DEAFNESS AND OTHER COMMUNICATION

DISORDERS

The conference agreement includes $300,581,000 for the National Institute on Deafness and Other Communication Disorders

as proposed by the Senate instead of $301,787,000 as proposed by

the House.

The conferees urge NIDCD to continue research on inner ear

hair cell regeneration with special emphasis on gene delivery and

gene transfer technology with specific relevance to the inner ear

and the development of improved hearing aids and cochlear implants using digital processes. The conferees also urge NIDCD to

continue to recruit experts from the field of molecular and cellular

biology and genetics.

NATIONAL INSTITUTE OF NURSING RESEARCH

The conference agreement includes $104,370,000 for the National Institute of Nursing Research instead of $102,312,000 as

proposed by the House and $106,848,000 as proposed by the Senate.

NATIONAL INSTITUTE ON ALCOHOL ABUSE AND ALCOHOLISM

The conference agreement includes $340,678,000 for the National Institute on Alcohol Abuse and Alcoholism instead of

$349,216,000 as proposed by the House and $336,848,000 as proposed by the Senate.

NATIONAL INSTITUTE ON DRUG ABUSE

The conference agreement includes $781,327,000 for the National Institute on Drug Abuse instead of $788,201,000 as proposed

by the House and $790,038,000 as proposed by the Senate.

NATIONAL INSTITUTE OF MENTAL HEALTH

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

of $1,114,638,000 as proposed by the House.

NATIONAL HUMAN GENOME RESEARCH INSTITUTE

The conference agreement includes $382,384,000 for the Na- tional Human Genome Research Institute instead of $386,410,000

as proposed by the House and $385,888,000 as proposed by the

Senate.

NATIONAL CENTER FOR RESEARCH RESOURCES

The conference agreement includes $817,475,000 for the National Center for Research Resources instead of $832,027,000 as

proposed by the House and $775,212,000 as proposed by the Senate. The conferees include a provision to waive the matching requirement for the grant or contract to manage the 288 chimpanzees

acquired by the Coulston Foundation. The House and Senate bills

contained no similar provision.

Within the total provided, $100,000,000 is for the Institutional

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stead of $60,000,000 as proposed by the Senate. In the implementation of these funds, the conferees concur with the language contained in the House report. In addition, the conferees believe that

the General Clinical Research Centers (GCRCs) are essential to

furthering biomedical research progress and have included funds

for NCRR above the Administration’s request to permit an increase

for GCRCs commensurate with the overall NIH funding increase.

The conferees urge NCRR to use a portion of the increase provided for a new competition of Science Education Program Awards

grants. The conferees further urge that these funds be used consistent with language contained in last year’s House and Senate reports.

JOHN E. FOGARTY INTERNATIONAL CENTER

The conference agreement includes $50,514,000 for the John E.

Fogarty International Center instead of $50,299,000 as proposed by

the House and $61,260,000 as proposed by the Senate.

NATIONAL LIBRARY OF MEDICINE

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

the House and $256,953,000 as proposed by the Senate.

NATIONAL CENTER FOR COMPLEMENTARY AND ALTERNATIVE

MEDICINE

The conference agreement includes $89,211,000 for the National Center for Complementary and Alternative Medicine instead

of $78,880,000 as proposed by the House and $100,089,000 as proposed by the Senate.

The conferees are aware of the health benefits of cranberries

and cranberry juice products in maintaining urinary tract health as

well as their positive antibacterial and antioxidant effects and believe that independent Federally-funded research to test and/or

validate these findings could add to the arsenal of health-based and

nutritional alternatives to wellness. The conferees encourage

NCCAM to study the health benefits of cranberry products.

NATIONAL CENTER ON MINORITY HEALTH AND HEALTH DISPARITIES

While the overall health of the nation has improved over the

last two decades, there continues to be striking disparities in the

burden of illness and death experienced by African Americans, Hispanics, Native Americans, Alaska Natives, and Asian-Pacific Islanders. Moreover, the largest numbers of medically underserved

are white individuals, and many of them have the same health and

access problems as do members of minority groups. Overcoming

such persistent and perplexing health disparities, and promoting

health for all Americans, ranks as one of our Nation’s foremost

challenges.

These disparities are believed to be the result of the complex

interaction among socioeconomic and biological factors, the environment, and specific behaviors, as well as other factors. While some

of the causes of inequitable health outcomes may be beyond the

scope of biomedical research, the conferees recognize that NIH has

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made research into health disparities a high priority, and has already taken steps to expand the role of research into why some minority groups have disproportionately high rates of disease.

Congress recently passed and the President has signed the Minority Health and Health Disparities Research and Education Act

of 2000. The Act established the National Center on Minority

Health and Health Disparities, which will enable NIH to move

ahead more rapidly toward its goal of elucidating the factors that

contribute to these disparities. The Center will conduct and support

research through grants to support programs targeting diseases

and conditions that disproportionately affect minority groups and

other populations with health disparities. The Center will build on

the work of the Office for Research on Minority Health and the success of the Minority Health Initiative, currently located in the NIH

Office of the Director. This will complement the ongoing research

of the NIH Research Institutes and Centers also aimed at reducing

health disparities. To emphasize the visibility of this new Center

and the importance of its research mission, the conferees have included bill language providing $130,200,000 for the Center.

OFFICE OF THE DIRECTOR

(INCLUDING TRANSFER OF FUNDS)

The conference agreement includes $213,581,000 for the Office

of the Director instead of $342,307,000 as proposed by the House

and $352,165,000 as proposed by the Senate. The agreement includes a designation in bill language of $48,271,000 for the operations of the Office of AIDS Research. The conferees understand

that with the funds allocated to NIH, the NIH expects to provide

$2,266,987,000 in AIDS research funding.

The agreement includes funds within the Office of the Director

to address the trend of the HIV/AIDS epidemic in communities of

color. The Office is encouraged to expand and strengthen sciencebased HIV prevention research for African Americans, Latinos, Native Americans, Asian Americans, Native Hawaiians and Pacific Islanders and consideration should be given to the U.S. Virgin Islands and Puerto Rico. The Office is also encouraged to expand existing culturally competent behavioral research, conducted by minority principal investigators, that seeks to break the link between

HIV infection and high risk behaviors and that seeks to decrease

the rate of mortality in targeted minority populations.

The conferees continue to be interested in matching the increased needs of researchers who rely upon human tissue and organs to study human diseases and to search for cures. The conferees are aware of a recent review by a panel of experts that found

that there is a rapidly expanding and unmet demand for the use

of human tissue samples for research purposes. The conferees encourage the Director of NIH to work with the relevant Institutes

to consider expanding support in this area and request that the Director be prepared to report on its plan to meet the demand for

human tissue at the fiscal year 2002 appropriations hearing.

The conferees encourage NIH to consider establishing a transNIH coordinating committee to focus on the lymphatic system, with

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particular emphasis on lymphedema and related lymphatic disorders.

The conferees are aware of concerns raised regarding the

progress of NIH research into fascioscapulohumeral muscular dystrophy and fascioscapulohumeral disease and encourage NIH to expand research in this area.

The conferees concur with the language contained in the Senate report regarding microbicides research.

The conferees encourage NIA, NICHD, and NINDS to work collaboratively to enhance research into Hutchison-Gilford Progeria

Syndrome, an illness that strikes children in their first year causing them to age rapidly and prematurely and for which the average

life expectancy is 13 years.

The NIH has developed a five-year Parkinson’s Disease Research Agenda. To carry out the plan, the professional judgement

budget estimates call for increases over existing Parkinson’s research of $71,400,000 in year one (fiscal year 2001). The conferees

strongly urge the Director to work toward implementation of the

research agenda and oversee coordination of all relevant Institutes,

including NINDS, NIEHS, NIA, and others conducting Parkinson’s

research. The Director is requested to report by March 1, 2001 on

the progress towards implementation of the research agenda and

to submit updated professional judgement funding projections for

subsequent years.

The conferees concur with the language in the Senate report

regarding a study of the structure of NIH and expect to receive a

report and recommendations one year from the date of confirmation of the new NIH Director.

The conferees have been made aware of the public interest in

securing an appropriate return on the NIH investment in basic research. The conferees are also aware of the mounting concern over

the cost to patients of therapeutic drugs. By July 2001, based on

a list of such therapeutic drugs which are FDA approved, have

reached $500,000,000 per year in sales in the United States, and

have received NIH funding, NIH will prepare a plan to ensure that

taxpayers’ interests are protected.

The Office of Dietary Supplements is urged to research the relationship between chromium deficiencies and diabetes in Native

Americans through all available mechanisms, as appropriate, including clinical trials.

The number of Americans taking dietary supplements containing ephedra has risen dramatically. The conferees encourage

the Office of Dietary Supplements to enhance clinical research on

the safety and efficacy of these products.

The conferees urge NIH to minimize the use of non-human animals in nicotine or tobacco experiments, and is encouraged to explore any non-human research methods that are currently available or under development that may be used as an alternative to

using non-human animals.

The conferees are concerned about the transfer of HIV prevention interventions that have proven to be effective to service programs supported by other federal agencies, such as CDC and

HRSA. The Office of AIDS Research (OAR) should work with the

ICs to increase NIH efforts in this area through the establishment

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of programs for regional technical assistance, technology transfer,

and training for the purpose of providing links between evidencebased HIV prevention science and public health departments, community planning groups, healthcare providers, and prevention service providers.

The conferees strongly urge NIH to implement an intensified

research effort regarding autism consistent with the Children’s

Health Act of 2000. The Director of NIH should also provide a report to the House and Senate Appropriations Committees by March

1, 2001 regarding a plan for establishing the Centers of Excellence

on Autism Program authorized in the Children’s Health Act of

2000.

The conferees commend the Office of AIDS Research for convening an external review of the Centers for AIDS Research Program and for the five year plan to increase the number of Centers.

However, the conferees urge the NIH to consider ways in which the

five year plan can be modified to balance the need to expand the

number of Centers with the need to adequately support the leading

AIDS research institutions with the core center mechanisms that

they need to efficiently pursue AIDS research.

The conferees encourage NIH to pursue recommendations from

the Diabetes Research Working Group to address the specific needs

of minority populations.

The conferees are aware of the National Institute of Child

Health and Human Development’s (NICHD) efforts to establish a

Perinatology Research Branch (PRB) to conduct research programs

on pregnancy and perinatology in the greater metropolitan region

of the District of Columbia. After several attempts, the conferees

understand that NICHD now intends to hold a nationwide competition for a site for the PRB. The Director is requested to submit a

written report by March 1, 2001, explaining why the efforts to establish the PRB in the greater metropolitan region of the District

of Columbia have to-date been unsuccessful. The District of Columbia has the highest rate of infant mortality in the United States,

the highest rate of infants born with low birthweights, and the lowest percentage of mothers receiving early prenatal care. Therefore,

the report should include possible alternative methods for conducting research programs on pregnancy and perinatology in the

greater metropolitan region of the District of Columbia.

The conferees believe it appropriate for NIH to recognize Paul

Rogers’ numerous contributions to the public health and medical

research. Therefore, the conferees urge the Director to designate

the plaza in front of the James Shannon building on the NIH campus as the Paul G. Rogers Plaza and to commemorate it in his

honor.

The conferees appreciate the efforts of the Director to ensure

that NLM’s future physical needs are met and encourage that sufficient funds be made available from within NLM funding to meet

these needs.

BUILDINGS AND FACILITIES

The conference agreement includes $153,790,000 for buildings

and facilities instead of $178,700,000 as proposed by the House and

$148,900,000 as proposed by the Senate.

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SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES ADMINISTRATION

SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES

The conference agreement includes $2,958,001,000 for sub- stance abuse and mental health services instead of $2,727,626,000

as proposed by the House and $2,730,757,000 as proposed by the

Senate. Within the funds provided, the conferees intend that

$15,000,000 is to carry out the fetal alcohol syndrome prevention

and services program.

Center for Mental Health Services

The conference agreement includes $420,000,000 for the men- tal health block grant instead of $416,000,000 as proposed by the

House and $366,000,000 as proposed by the Senate. The conference agreement includes $91,763,000 for children’s mental health instead of $86,763,000 as proposed by both the

House and Senate.

The conference agreement includes $36,883,000 for grants to

states for the homeless (PATH) as proposed by the Senate instead

of $30,883,000 as proposed by the House. The conference agreement includes $30,000,000 for protection and advocacy instead of $24,903,000 as proposed by the House and

$25,903,000 as proposed by the Senate. The conferees continue to

be concerned about deaths and serious injuries due to the inappropriate use of seclusion and restraints in facilities that treat individuals with mental illnesses and have provided additional resources

so that these deaths can be investigated and future incidences can

be prevented.

The conference agreement includes $203,674,000 for programs

of regional and national significance instead of $132,749,000 as

proposed by the House and $146,875,000 as proposed by the Senate.

Within the total provided, $90,000,000 provided under section

581 of the Public Health Service Act is for the support and delivery

of school-based and school-related mental health services for

school-age youth. It is intended that the Department will continue

to collaborate its efforts with the Department of Education to develop a coordinated approach. The conferees recognize it may be

necessary for the agency to allocate additional resources to the Safe

Schools/Healthy Students Action Center to expand its technical assistance to serve new grantees.

Within the total provided, $3,000,000 is for suicide prevention

hotlines. The conferees direct SAMHSA to undertake an evaluation

of the effectiveness of these hotlines in preventing suicides.

The conferees believe that SAMHSA is uniquely qualified to

support a clearinghouse for youth suicide prevention, including a

database and related files of reference materials and organizations.

SAMHSA, through this clearinghouse, could provide training and

technical assistance to States to implement the Surgeon General’s

recommendations for suicide prevention.

Within the total provided, $10,000,000 is provided under section 582 of the Public Health Service Act to support up to 22 grants

to local mental health providers for the purposes of developing

knowledge of best practices and providing mental health services to

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children and youth suffering from post traumatic stress disorder as

a result of having witnessed or experienced a traumatic event.

Grantees can include psychiatric hospitals, general hospitals, outpatient mental health clinics, and community and university-based

mental health programs. With respect to grants for knowledge development, preference should be given to applicants with experience in the field of trauma related mental disorders in children and

youth. Within the total provided, $2,000,000 is to support professional

training in restraints and seclusion in residential and day treatment centers for children and youth. This training initiative will

support grants to non-profit and public entities for the purpose of

developing and demonstrating the effectiveness of a best-practices

training model to avoid the inappropriate use of restraints and seclusion.

The conferees are supportive of efforts to develop a model

training demonstration project to help eliminate deaths and injuries that occur in mental health facilities due to the inappropriate

use of seclusion and restraints. Such a model training program

should emphasize conflict resolution and de-escalation. Within the total provided, an increase of $2,000,000 is to provide additional support for minority fellowships in mental health. Within the total provided, $7,000,000 is for the treatment of

mental health disorders related to HIV disease including: dementia, clinical depression and the chronic, progressive neurological

disabilities that often accompany HIV disease. These direct services

grants provided to minority community-based providers that operate in traditional and non-traditional settings are designed to

strengthen their capacity to provide HIV related mental health

services.

Funds are included to provide grants to local communities to

improve mental health screening and referrals in non-mental

health settings and continue support for jail diversion programs for

non-violent mentally ill offenders.

It is intended that funds used to make grants to States for the

purpose of developing data infrastructure will be used for mental

health only.

The conferees include the following amounts for the following

projects and activities in fiscal year 2001:

—$83,000 for the Hope Center in Lexington, Kentucky;

—$85,000 for Steinway Child and Family Services, Inc. in

Queens, New York for HIV/AIDS prevention;

—$100,000 for the American Trauma Society to support its

Second Trauma Program which helps train trauma system health

care professionals to assist individuals facing the shock of an unexpected death or critical injury to their family members;

—$200,000 for the Concord-Assabet Family Services Center for

a model transitional living program for troubled youth;

—$325,000 for Preschool Anger Management, Family Communications;

—$500,000 for the Life Quest Community Mental Health Center in Wasilla, Alaska;

—$680,000 for Pacific Clinics in Arcadia, California, to support

a school-based mental health demonstration program for Latina

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adolescents in partnership with community groups, mental health

agencies, local governments and school systems in Southeast Los

Angeles county;

—$803,000 for the Bert Nash Community Mental Health Center in Lawrence, Kansas, to provide mental health services in

schools and other settings to prevent juvenile crime and substance

abuse among high-risk youth;

—$800,000 for the Alaska Federation of Natives for innovative

homeless mental health services in Alaska;

—$850,000 for the Iowa State University Extension to develop

a program which would provide outreach, training, and counseling

services in rural areas;

—$921,000 for the United Power for Action and Justice demonstration project in Chicagoland area to end the cycle of homelessness;

—$921,000 for a mentally ill offender crime reduction demonstration in Ventura County, California to create the building

blocks for a continuum of care for mentally ill offenders who enter

the jail system in the county;

—$850,000 for the University of Connecticut for an urban

health initiative to improve mental health services to underserved

high-risk individuals living in urban public housing;

—$1,007,000 for the University of Florida National Rural Behavioral Health Center to train extension agents in crisis intervention and stress management to better equip them to deal with emotional and stress related problems;

—$1,500,000 for the Ch’eghutsen program in interior Alaska;

and

—$1,300,000 for the Alaska Federation of Natives to use integrated community care to treat native Alaska children with mental

health disorders.

Center for Substance Abuse Treatment

The conference agreement includes $1,665,000,000 for the substance abuse block grant instead of $1,631,000,000 as proposed by

both the House and the Senate.

The conference agreement includes $256,315,000 for programs

of regional and national significance instead of $213,716,000 as

proposed by the House and $249,566,000 as proposed by the Senate. Within the total provided, $10,000,000 is to initiate grants to

local non-profit and public entities for the purpose of developing

and expanding substance abuse services for homeless persons.

The agreement includes $53,000,000 designed to provide targeted service expansion and capacity building to minority, community-based substance abuse treatment programs with a history of

providing services to communities of color severely impacted by

substance abuse and HIV/AIDS. The correlation between addiction

and HIV/AIDS is well documented. Injection drug use alone still accounts for more than 20 percent of the primary HIV infection risk

for African American and Latino adults. These funds are to be allocated based on program priorities identified in the previous fiscal

year and new priorities. Funds are also included to enhance state

and county efforts to plan and develop integrated substance abuse

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and HIV/AIDS treatment and prevention services to communities

of color.

The conferees are supportive of the efforts of the Sunshine

Shelter for abused and neglected children in Natchez, Mississippi

in treating chemically dependent women and their children and

note that additional resources would allow the Shelter to expand

its outreach efforts.

The conferees include the following amounts for the following

projects and activities in fiscal year 2001:

—$100,000 for the Vermont Department of Health Office of Alcohol and Drug Abuse Prevention to examine adolescent residential

treatment programs;

—$106,000 for Center Point, Inc., in Marin County, California,

to continue support for substance abuse and related services for minority, homeless and other at risk populations;

—$200,000 for Green Door in Washington, D.C. to treat minority consumers with substance abuse problems and mental health

issues;

—$250,000 for the Allegheny County Drug and Alcohol Rehabilitation Program;

—$500,000 for the Cook Inlet Council on Alcohol and Drug

Abuse Treatment;

—$500,000 for the House of Mercy in Des Moines, Iowa to support treatment programs for pregnant and post-partum women;

—$500,000 for the State of Wyoming to carry out an innovative

substance abuse prevention and treatment program;

—$425,000 for Humboldt County, California, to support residential substance abuse and related services for women who have

children;

—$608,000 for the Hope Center in Lexington, Kentucky;

—$645,000 for the Grove Counseling Center in Winter Springs,

Florida for a demonstration project of effective youth substance

abuse treatment methods;

—$750,000 for the Fairbanks LifeGivers Pregnant and Parenting Teens program;

—$900,000 for the Alaska Federation of Natives to identify

best substance abuse treatment practices;

—$1,105,000 for the City of San Francisco’s model ‘‘Treatment

on Demand’’ program for the homeless; and

—$2,210,000 for the Baltimore City Health Department to use

innovative methods to enhance drug treatment services.

Center for Substance Abuse Prevention

The conference agreement includes $175,145,000 for programs

of regional and national significance instead of $132,742,000 as

proposed by the House and $127,824,000 as proposed by the Senate. Within the total provided, it is intended that high-risk youth

grants will at least be maintained at last year’s level.

The agreement includes $32,100,000 for grants to minority

community based organizations to implement programs that

strengthen substance abuse prevention capacity in communities of

color disproportionately impacted by the HIV/AIDS epidemic, based

on the most recent estimated living AIDS cases, HIV infections and

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AIDS mortality among ethnic and racial minorities as reported by

the CDC.

The conferees include the following amounts for the following

projects and activities in fiscal year 2001:

—$85,000 for the City of Alexandria, Virginia, substance abuse

prevention demonstration program for high-risk Latino youth;

—$213,000 for the Rock Island County Council on Addiction in

East Moline, Illinois, for a youth substance abuse prevention program; and

—$500,000 for the Drug-free Families Initiative at the University of Missouri, St. Louis.

The conferees have included sufficient funds to continue the

pregnant and post-partum substance abuse prevention evaluations

for both the Community Prevention Parnership of Berks County,

Inc. and the Family Planning Council of Pennsylvania

Program Management

The conference agreement includes $79,221,000 for program

management instead of $58,870,000 as proposed by the House and

$59,943,000 as proposed by the Senate. Within the total provided,

$12,000,000 is for the National Household Drug Survey.

The conferees include $3,278,000 in fiscal year 2001 to continue testing the effectiveness of Community Assessment and

Intervention Centers in providing integrated mental health and

substance abuse services to troubled and at-risk children and

youth, and their families in four Florida communities. Building

upon successful juvenile programs, this effort responds directly to

nationwide concerns about youth violence, substance abuse, declining levels of service availability and the inability of certain communities to respond to the needs of their youth in a coordinated manner. The total provided includes, $2,000,000 for mental health special projects of regional and national significance; $1,000,000 for

substance abuse treatment special projects of regional and national

significance; $500,000 for substance abuse prevention special

projects of regional and national significance; and $200,000 for program management.

The agreement includes a general provision proposed by the

Senate regarding the withholding of substance abuse funds. The

House bill contained no similar provision. The Synar amendment

was included as part of the SAMHSA reorganization bill in 1992.

The amendment and its implementing regulation required States

to reduce sales of tobacco to minors within a negotiated period of

time and if a State fails to meet its goals, reduced its substance

abuse prevention and treatment block grant funding by 40 percent.

The conferees are extremely concerned that several States, after at

least four years, are not in compliance with the law and continue

to seek an exemption to the penalty requirement. It is the conferees intention that this will be the last year exemption language

will be carried in an appropriations bill. SAMHSA is directed to notify States of this intention and work with the affected States to

help them come into compliance.

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AGENCY FOR HEALTHCARE RESEARCH AND QUALITY

HEALTHCARE RESEARCH AND QUALITY

The conference agreement includes $104,963,000 in appro- priated funds instead of $123,669,000 as proposed by the House.

The Senate bill did not provide a direct appropriation for the agency, instead it proposed to fund the agency through the evaluation

set-aside.

The conference agreement designates $164,980,000 to be available to the agency under the Public Health Service Act one percent

evaluation set-aside as proposed by the House instead of

$269,943,000 as proposed by the Senate.

The conferees are troubled by the recent Institute of Medicine

study which found that as many as 98,000 deaths are caused by

medical errors each year. The conferees have provided an additional $50,000,000 to the agency to determine ways to reduce medical errors. The conferees are supportive of a study to determine

the impact of extended work hours for registered nurses on patient

safety. The agreement includes $10,000,000 for research that investigates the relationship between the health care workplace and its

impact on medical errors and the quality of care provided to patients. Efforts to restructure the health care workplace, often in response to pressures to reduce costs, suggest that work environment

and processes have had an impact on health and quality of workers’ lives as well as the patients for whom they care. As we have

learned from the experience of the aviation industry, reducing errors and promoting safety are a result of improving workforce systems. Likewise, it is important that workforce considerations be integrated into efforts to reduce medical errors and promote patient

safety. The conferees believe that better understanding of these

workforce considerations will lead to improved workplace practices

and better outcomes for patients.

The conferees support the efforts of the Agency for Healthcare

Research and Quality, the National Institute for Occupational Safety and Health, the Department of Labor, and other agencies to

work jointly and coordinate their work to improve healthcare quality, patient safety, and worker safety in health care facilities,

through such activities as the October 2000 jointly sponsored conference on ‘‘Enhancing Working Conditions and Patient Safety:

Best Practices.’’ The conferees urge that such coordinated efforts be

continued.

The conferees strongly urge the agency to enhance its investigator-initiated research funding through all available mechanisms,

as appropriate.

HEALTH CARE FINANCING ADMINISTRATION

PROGRAM MANAGEMENT

The conference agreement includes $2,246,326,000 for program

management instead of $1,866,302,000 as proposed by the House

and $2,018,500,000 as proposed by the Senate. The House bill assumed that the Administration’s user fee proposal would be enacted prior to conference. An additional appropriation of

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$680,000,000 has been provided for the Medicare Integrity Program

through the Health Insurance Portability and Accountability Act of

1996.

The conferees repeat language included in last year’s bill related to administrative fees collected relative to Medicare overpayment recovery activities.

RESEARCH, DEMONSTRATION, AND EVALUATION

The conference agreement includes $139,311,000 for research, demonstration, and evaluation instead of $55,000,000 as proposed

by the House and $65,000,000 as proposed by the Senate. The agreement includes $50,000,000 for Real Choice Systems

Change Grants to states to fund initiatives that establish specific

action steps and timetables to achieve enduring system improvements and to provide long term services and supports, including

community-based attendant care, to eligible individuals in the most

integrated setting appropriate. Grant applications should be developed jointly by the State and the Consumer Task Force. The Task

Force should be composed of individuals with disabilities from diverse backgrounds, representatives from organizations that provide

services to individuals with disabilities, consumers of long-term

services and supports, and those who advocate on behalf of such individuals. Grant-funded activities should focus on areas of need as

determined by the State and the Task Force such as needs assessment and data gathering, strategies to modify policies that unnecessarily bias provision of long term care services to institutional

settings or to health care professionals, and training and technical

assistance.

The agreement includes bill language for the following projects

and activities for fiscal year 2001: —$300,000 for the United States-Mexico Border Counties Coalition for a study to determine the unreimbursed costs incurred to

treat undocumented aliens for medical emergencies in southwest

border States, their border counties, and hospitals within the jurisdiction of these States and counties; —$255,000 for the LA Care Health Plan in Los Angeles, California for a demonstration program to improve clinical data coordination among Medicaid providers; —$350,000 for the Cook County, Illinois Bureau of Health for

the Asthma Champion Initiative demonstration to reduce morbidity

and mortality from asthma in high prevalence areas; —$500,000 to the University of Pittsburgh Medical Center and

University of Pennsylvania for a study of the efficacy of surgical

versus non-surgical management of abdominal aneurysms; —$691,000 for a Medicare demonstration project at Ohio State

University to determine the benefits of compliance packaging;

—$650,000 for the Vascular Surgery Outcomes Initiative at

Dartmouth College;

—$646,000 for Shelby County Regional Medical Center to establish a Master Patient Index to determine patient Medicaid/

TennCare eligibility;

—$855,000 for the Children’s Hospice International demonstration program to provide a continuum of care for children with lifethreatening conditions and their families;

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—$921,000 for Equip for Equality for a demonstration project

to document the impact of an independent investigative unit that

will examine deaths or other serious allegations of abuse or neglect

of people with disabilities at facilities in Illinois;

—$1,000,000 for the West Virginia University School of Medicine’s Eye Center to test interventions and improve the quality of

life for individuals with low vision;

—$1,000,000 for Duke University Medical Center to demonstrate the potential savings in the Medicare program of a reimbursement system based on preventative care.

—$1,000,000 for the Iowa Department of Public Health for the

establishment and operation of a mercantile prescription drug purchasing cooperative or non-profit corporation demonstration;

—$1,843,000 for the Buck’s County Health Improvement

Project in Pennsylvania;

—$1,700,000 for the AIDS Healthcare Foundation in Los Angeles for a demonstration of residential and outpatient treatment facilities;

—$2,800,000 for the Mind-Body Institute of Boston, Massachusetts to conduct a demonstration of a lifestyle modification program;

—$2,800,000 for a joint project between the University of Pittsburgh, Case Western Reserve in Cleveland, Ohio, and Mt. Sinai

Hospital in Miami, Florida, to use integrated nursing services and

technology to implement daily monitoring of congestive heart failure patients in underserved populations in accordance with established clinical guidelines; and

—$20,000,000 to continue demonstration projects on Medicaid

coverage of community-based attendant care services for people

with disabilities.

HCFA is urged to conduct a demonstration project addressing

the extraordinary adverse health status of native Hawaiians at the

Waimanalo health center exploring the use of preventive and indigenous health care expertise.

HCFA is urged to work with the United States Renal Data

System (USRDS) to test potential savings to the Federal government and to the Medicare program by comparing actual Medicare/

Medicaid spending for end stage renal disease (ESRD) patients currently on daily hemodialysis with actual Medicare/Medicaid spending for ESRD patients on other treatment modalities, such as peritoneal dialysis and in-center hemodialysis whose demographic and

other characteristics match those of the daily hemodialysis patients

in 9 to 12 existing programs in the U.S. Such a study should compare spending related to patient dialysis and training, medications,

vascular access, ambulance transportation, physician and outpatient medical expenses not related to dialysis, hospitalizations,

and other medical services, such as skilled nursing facilities or

home health care and any other spending for which data is available to the USRDS.

HCFA is encouraged to utilize edit check software programs to

scrub electronic data files prior to processing by the respective

State agency and/or fiscal intermediary. The identification of errors

and omissions prior to submission can provide dramatic improveVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00155 Fmt 6601 Sfmt 6601 E:\HR\OC\HR1033.001 pfrm03 PsN: HR1033
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ment in the financial condition of many providers who are experiencing large losses of revenue.

The conferees are concerned that HCFA has not instituted a

demonstration project to test the potential savings to the Federal

government and to the Medicare program by comparing different

products used for diabetic wound care treatment as referenced in

last year’s conference agreement. Such a demonstration should

compare the aggregate costs of wound care treatment using different applications regimens. The conferees urge HCFA to proceed

with this demonstration project utilizing existing research funds.

The conferees are aware that the Health Passport pilot program is helping thousands of low-income families in Nevada, Wyoming and North Dakota and urges HCFA to give full and fair consideration to a proposal to continue the program.

The conferees have become increasingly concerned that many

people with the most severe disabilities often experience a lack of

quality in community residential and treatment services that can

result in dangerous or unhealthful conditions. The conferees believe

that such services should be monitored by an entity that has the

expertise and legal authority necessary to ensure the safety and

general well-being of this population. Accordingly, the conferees

urge HCFA to support the protection and advocacy system to demonstrate the efficacy of such community monitoring.

Medicare Contractors

The conference agreement includes $1,357,000,000 for Medicare contractors instead of $1,165,287,000 as proposed by the

House and $1,244,000,000 as proposed by the Senate. Of this

amount, $1,305,000,000 is to support Medicare claims processing

contracts and $52,000,000 is for Medicare+Choice information campaign.

State Survey and Certification

The conference agreement includes $244,147,000 for State survey and certification instead of $171,147,000 as proposed by the

House and $219,674,000 as proposed by the Senate.

The agreement includes an increase of $10,000,000 over the

President’s request for nursing home oversight and quality of care

services.

Federal Administration

The conference agreement includes $505,868,000 for Federal

administration instead of $474,868,000 as proposed by the House

and $489,826,000 as proposed by the Senate.

The conferees urge HCFA to give careful consideration to concerns that substance abuse (alcohol and drug) treatment facilities

may not have been intended to be considered institutions for mental diseases exclusion under Medicaid since these facilities were not

common when the exclusion policy was implemented. The conferees

are aware that restricting Medicaid medical assistance to residential substance abuse treatment facilities with 16 or fewer adult

treatment beds places an undue burden on the publicly funded substance abuse treatment and prevention infrastructure.

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The conferees concur with Senate report language urging

HCFA to act more expeditiously to approve new medical technologies, including PET scans, for Medicare patients so that seniors

will have access to the latest life-saving technologies and treatments.

The conferees understand that HCFA regulations require

States to provide documentation and justification before making

changes in Medicaid reimbursements. The conferees are concerned

that several State Medicaid agencies are currently paying or proposing to pay chain-operated pharmacies lower reimbursement

rates than other pharmacies for providing the same prescription

products and related services without providing the required justification. The conferees expect HCFA to enforce current regulations when reviewing and approving State submissions. The conferees also believe that the implementation of a different system for

Medicaid reimbursements of pharmaceuticals should be addressed

by the authorizing committees of jurisdiction. The Administrator

should be prepared to testify on the status of this issue at the fiscal

year 2002 appropriations hearing.

HCFA has proposed guidelines regarding the administrative

claims process for schools requesting reimbursement for Medicaid

related services. The conferees are concerned that these guidelines

are being developed without adequate input from interested parties

and will significantly alter the administrative claiming program

making it more difficult for schools to provide services to poor and

disabled children. HCFA is expected to consult with school practitioners and other groups to draft guidance for Medicaid allowable

costs under the administrative claiming section of the School Based

Services program. HCFA is also urged to process pending State applications and to continue to review reimbursement procedures

until new guidelines are published. The Administrator should be

prepared to testify on this issue at the fiscal year 2002 appropriations hearing.

ADMINISTRATION FOR CHILDREN AND FAMILIES

PAYMENTS TO STATES FOR CHILD SUPPORT ENFORCEMENT AND

FAMILY SUPPORT PROGRAMS

The conference agreement includes $2,441,800,000 for payments to states for child support enforcement and family support

programs instead of $2,473,800,000 as proposed by the House and

$2,473,880,000 as proposed by the Senate. The conferees provide

extended availability of funds as proposed by the Senate. The

House bill proposed no extended availability.

LOW INCOME HOME ENERGY ASSISTANCE

The conference agreement includes an additional $300,000,000

in fiscal year 2001 funding for the Low Income Home Energy Assistance program. When combined with the $1,100,000,000 already

appropriated for fiscal year 2001 and the $300,000,000 in emergency funding, a total of $1,700,000,000 is available to support this

program in fiscal year 2001. The agreement includes up to

$27,500,000 for the leveraging incentive fund within these totals.

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The conferees are aware that average home heating fuel prices

have doubled in the past year, and in some areas are up five-fold,

while at the same time many states are expected to experience extremely cold winter. The conferees are deeply concerned that this

will force steep reductions in the relative percentage of home heating cost that LIHEAP provides to low-income households. The conferees have provided a $300,000,000 increase in the regular appropriation for fiscal year 2001 to reduce the adverse impact of these

fuel price spikes.

The conference agreement does not include advance funding for

fiscal year 2002 for LIHEAP as proposed by the Senate. The House

bill proposed $1,100,000,000 for fiscal year 2002. The conferees are

aware that advance funding for LIHEAP was authorized by Congress in 1990 to respond to the States’ need to budget and plan

their LIHEAP programs in advance of the fall/winter heating season. States are required by statute to hold public hearings in the

spring and summer on their proposed LIHEAP programs to determine eligibility levels, establish the size of household benefits, and

establish parameters of crisis programs. Consequently, States must

be able to reliably predict the LIHEAP appropriation that normally

becomes available at the very beginning of the heating season, but

which is often delayed due to late enactment of appropriations

bills. As noted in the Senate Report 101–421 accompanying the

Human Services Reauthorization Act of 1990, ‘‘Forward funding

will allow states to identify clients, provide assistance, and put

them on responsible budget payment-plans in the summer or fall

to avoid the development of life-threatening situations.’’ Although

advance funding is not included in this bill, the conferees fully intend to provide at least $1,400,000,000 in regular LIHEAP appropriations and $300,000,000 in emergency funds in fiscal year 2002.

REFUGEE AND ENTRANT ASSISTANCE

The conference agreement includes $433,109,000 for refugee

and entrant assistance as proposed by the House instead of

$425,586,000 as proposed by the Senate. Within this amount, for

the Torture Victims Relief Act funds, the conferees provide

$10,000,000 as proposed by the House instead of $7,265,000 as proposed by the Senate. Within this amount, the conferees provide

funding to implement the Trafficking Victims Protection Act of

2000, which will support efforts to certify eligibility for benefits and

services for trafficking victims.

The agreement includes $20,000,000 from carryover funds that

are to be used under social services to increase educational support

to schools with a significant proportion of refugee children and for

the development of alternative cash assistance programs that involve case management approaches to improve resettlement outcomes. Such support should include intensive English language

training and cultural assimilation programs.

The agreement also includes $26,000,000 for increased support

to communities with large concentrations of refugees whose cultural differences make assimilation especially difficult justifying a

more intense level and longer duration of Federal assistance.

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PAYMENTS TO STATES FOR THE CHILD CARE AND DEVELOPMENT

BLOCK GRANT

The conference agreement includes an additional $817,328,000

for child care services, together with the $1,182,672,000 provided

as an advance appropriation in last year’s bill, raising the funding

level for this program to $2,000,000,000 for fiscal year 2001. The

agreement does not provide for an advance appropriation for fiscal

year 2002 as proposed by the Senate; however, the conferees intend

that funding for the child care block grant be at least that level in

fiscal year 2002. The House bill proposed advance funding of

$2,000,000,000 for fiscal year 2002.

The agreement also includes language specifying that funds

under the Child Care and Development Block Grant are to be used

to supplement, not to supplant, state and local child care funds.

The agreement also sets aside an additional $272,672,000 from

fiscal year 2001 to be reserved by the States for activities authorized under section 658G, of which $100,000,000 shall be for activities that improve the quality of infant and toddler child care. The

House bill set aside $172,672,000 for additional quality purposes in

fiscal year 2002. The Senate bill set aside $222,672,000 for additional quality activities, of which $100,000,000 was to be used for

infant and toddler care, in fiscal year 2001. The agreement also

sets aside $10,000,000 to be used for child care research, demonstration and evaluation activities. Neither the House nor the

Senate contained this provision. Within the funds provided for

child care resources and referrals, the agreement also includes

$1,000,000 for the Child-Care Aware toll-free hotline.

SOCIAL SERVICES BLOCK GRANT

The conference agreement includes $1,725,000,000 for the social services block grant instead of $1,700,000,000 as proposed by

the House and $600,000,000 as proposed by the Senate. The conference agreement includes a provision which maintains the percentage of funds that a state may transfer between the Social Services Block Grant and the Temporary Assistance to Needy Families

Programs at 10 percent.

CHILDREN AND FAMILIES SERVICES PROGRAMS

(INCLUDING RESCISSIONS)

The conference agreement includes $7,956,345,000 for children

and families services programs instead of $7,231,253,000 as proposed by the House and $7,895,723,000 as proposed by the Senate.

In addition, the agreement rescinds $21,000,000 from permanent

appropriations as proposed by both the House and the Senate.

Head Start

The conference agreement includes $6,200,000,000 for Head

Start instead of $5,667,000,000 as proposed by the House and

$6,267,000,000 as proposed by the Senate. The agreement includes

an advance appropriation of $1,400,000,000 for Head Start for fiscal year 2002 as proposed by both the House and the Senate.

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The conferees are concerned that while fifty percent of children

eligible for the regular Head Start program receive services, only

about ten percent of children of farmworkers are served by Migrant

Head Start. Therefore, the conferees encourage the Secretary to increase funding for Migrant and Seasonal Head Start in proportion

to the overall funding increase for Head Start. The conferees also

urge the agency to ensure that all children participating in the

Early Head Start program receive a blood lead screening test.

The conferees urge the agency to provide funds to the Alaska

Federation of Natives to train Head Start teachers in remote Alaska villages. The conferees also encourage the agency to provide

funds to the University of Alaska to provide distance training for

Head Start teachers through Associate Degree programs.

Runaway Youth

The conference agreement includes $69,155,000 for runaway

youth as proposed by the Senate instead of $64,155,000 as proposed by the House. The agreement allocates funds for the runaway and homeless youth programs following the structure of P.L.

106–71, the Missing, Exploited, and Runaway Children Protection

Act, which consolidates the programs into a single funding stream.

Adoption Incentive

The conference agreement includes $43,000,000 for the adoption incentive program as proposed by the House instead of

$55,928,000 as proposed by the Senate. The agreement also includes language that will allow funds under this program to be carried over for use in paying prior year bonuses.

Social Services and Income Maintenance Research

The conference agreement includes $37,666,000 for social services and income maintenance research instead of $27,491,000 as

proposed by both the House and the Senate. Of this total, the conferees intend that $5,000,000 be transferred to the Census Bureau

for continued data collection on the Survey of Income and Program

Participation. The conferees also provide sufficient funding for the

following:

—$500,000 for the National Fatherhood Initiative;

—$500,000 for the Institute for Responsible Fatherhood;

—$1,000,000 for the State Information Technology Consortium;

—$175,000 for the Nation Center for Appropriate Technology’s information technology clearinghouse.

The conferees also include $500,000 within Social Services and

Income Maintenance Research to support adding LIHEAP related

questions to the Residential Energy Consumption Survey (RECS)

conducted by the Department of Energy and to the Census Bureau’s March current population survey to assure that the low-income household component is included in the surveys, and the conferees urge the expansion of the RECS sample size to target

LIHEAP recipients. The conferees have also included $2,500,000

for grants to qualified private, non-profit intermediaries to demonstrate the provision of technical assistance to child care providers

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to improve the quality and supply of child care facilities in low income communities and to document the changes.

Community Services Block Grant

The conference agreement includes $600,000,000 for the community services block grant instead of $550,000,000 as proposed by

the Senate and $527,700,000 as proposed by the House. The conferees expect that all local entities that are in good standing in the

community services block grant program shall receive an increase

in funding for the next program year that is proportionate to the

overall increase in the appropriation provided for the block grant.

The agreement includes language proposed by the Senate that

requires the Department to establish certain procedures regarding

the disposition of intangible property in the community economic

development program under the Community Services Block Grant

Act. The House bill contained no similar provision. The conferees

also set aside $5,500,000 within the community economic development program for the job creation demonstration authorized under

the Family Support Act.

Within the funds provided for child abuse prevention programs, the agreement includes the following items:

$737,000—University of North Carolina, Greensboro, NC

for Violence Abuse Prevention and Education for Deaf and

Hard of Hearing Children and their Caretakers;

$1,382,000—Public Children Services Association of Ohio,

Columbus, OH for child abuse prevention activities;

$46,000—New Directions Housing Corp., Louisville, KY for

the Homeless Youth Development Program;

$230,000—Neighbor to Family, Des Plaines, IL for foster

care training program;

$524,000—Robert A. Pascal Youth and Family Services

Inc., Severna Park, Maryland for the Healthy Families program;

$1,773,000—Foster Parents Association, Spokane, WA for

the Foster Family Support System;

$230,000—Dave Thomas Center for Adoption Law at Capital University Law School, Columbus OH for development of

an adoption law online database;

$75,000—Operation Breakthrough in Kansas City;

$400,000—Parent-to-Parent of Winooski, Vermont;

$200,000—Family Friends for respite services for families

with disabled children;

$900,000—Alaska Native Health Board Child abuse prevention program;

$2,500,000—early childhood services—Alaska Seed program;

$2,500,000—to continue the Healthy Families Home Visiting Program in Alaska;

$550,000—Early Childhood Development Center at Texas

Tech University;

$900,000—Celeste Foundation for a pilot program to bring

in-home professional services via video and audio to disruptive

at-risk children in foster home placements;

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$600,000—Farm Resource Center in West Virginia to provide a mechanism of early intervention for rural families in crisis; $100,000—Phoenix House Domestic Violence Center in

Council Bluffs, Iowa; $1,562,000—Indian Oaks Academy in Manteno, IL for a

demonstration project serving children and adolescents who

are victims of child abuse; $500,000—Strengthen Our Sisters in West Milford, New

Jersey to expand services.

Within the funds provided for developmental disabilities, spe- cial projects $200,000 is included for the Allegheny County Respite

Care Coalition to provide respite services for parents with disabled

children.

Within the funds provided for Native American programs, the

agreement includes the following: —$700,000 for the Cook Inlet Tribal Council;

—$300,000 for Kawerak, Inc.

—$500,000 for the Alaska Federation of Natives to coordinate social service resources in native villages; —$100,000 for the South Dakota Native American Community Board to establish a Dakota language preservation program.

The conferees support the idea that a national adoption

website could include all youngsters available for adoption and will

increase the likelihood that children will find loving, stable homes.

The conferees recognize that the National Adoption Center has

been at the forefront of developing technology-based resources to

facilitate adoptions and is uniquely situated to create a single, national adoption website. The conferees have included sufficient

funds for the National Adoption Center to continue to develop and

sustain a national adoption photo listing service on the Internet.

PAYMENTS TO STATES FOR FOSTER CARE AND ADOPTION ASSISTANCE

The conference agreement includes $4,863,100,000 for payments to states for foster care and adoption assistance as proposed

by the House instead of $4,868,100,000 as proposed by the Senate.

ADMINISTRATION ON AGING

AGING SERVICES PROGRAMS

The conference agreement includes $1,103,135,000 for aging

services programs instead of $925,805,000 as proposed by the

House and $954,619,000 as proposed by the Senate.

The conferees include $125,000,000 to provide critically needed

services for family caregivers under title III E and title VI C of the

Older Americans Act as amended. The conferees intend that

$5,000,000 of these funds be dedicated for Native American caregivers. According to the Administration on Aging, over seven million Americans are providing care for disabled seniors in households across the nation. Funds will be provided to states to use

their aging networks to provide quality respite care and other support services such as information on available resources; assistance

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port. Such services improve the caregiver’s ability to provide care,

help preserve the family unit, prevent abuse and neglect, and minimize out-of-home placements. Caregiver support services also delay

nursing home stays among care recipients. The conferees intend that $5,000,000 be made available from

preventive health services for activities regarding medication management, screening, and education to prevent incorrect medication

and adverse drug reactions.

The agreement includes the following amounts under aging research and training: $961,000—Texas Tech University Health Sciences Center,

Lubbock, TX for the Institute for Healthy Aging; $691,000—Florida International University, Miami, FL,

National Policy and Research Center on Nutrition and Aging

for ‘‘Nutrition 2030’’ program; $2,000—Bay Ridge Center for Older Adults, Brooklyn, NY

for a demonstration program; $3,000—Staten Island Community Services Friendship

Clubs, Inc., Staten Island, NY for a demonstration program in

senior centers;

$921,000—Mecklenburg County Department of Social

Services, Services for Adults Division in Charlotte, NC for Nutrition 2000 program; $461,000—Metropolitan Family Services, Chicago, IL for a

community based caregiver training program; $369,000—Ocean County New Jersey, Office of Senior

Services for a demonstration program; $369,000—Burlington County New Jersey, Office on Aging

for a demonstration program; $184,000—Camden County New Jersey, Division of Senior

Services for a demonstration program; $427,000—Florida Atlantic University, Boca Raton, FL for

Anne and Louis Green Alzheimer’s Care and Research Center;

$886,000—St. Petersburg Junior College in FL for Services

for Caregivers of Seniors program;

$250,000—Access Community Health Network’s Senior

Outreach Program;

$1,400,000—Deaconess-Billings Northwest Area Center for

Studies on Aging;

$100,000—An elderly meals demonstration program at

Progresso Latino in Central Falls, Rhode Island;

$100,000—The Senior Fitness and Wellness Program in

East Providence;

$100,000—Southwest General Health Center Gatekeeper

Program;

$100,000—An additional $100,000 for the National Asian

Pacific Center on Aging;

$344,000—Northwest Parkinson’s Foundation;

$400,000—Champlain Valley Area Agency on Aging mental health project;

$500,000—Albert Einstein Life Center in Germantown;

$3,685,000—Social research into Alzheimer’s disease care

options, best practices and other Alzheimer’s research priorities as specified in the House report;

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$100,000—Champlain Senior Center for adult day programming and a technology initiative; $200,000—Brandeis University Center on Women and

Aging to conduct research on caregiving, health and financial

security among seniors; $64,000—LIFESPAN of Greater Rochester, Inc., New

York, to enhance a life course planning initiative to help older

adults make informed choices to prepare for retirement; $85,000—San Luis Obispo Medical Society in California for

volunteers in health to support a demonstration program to

provide prescription drugs for low income, uninsured seniors; $120,000—Marathon County, Wisconsin to continue an initiative to provide respite care services; $170,000—Walk the Walk, Inc, in Long Island City, New

York for Mary’s House, an elder abuse center in Glendale, New

York;

$425,000—St. Louis County, Missouri for a seniors job

training demonstration program; $468,000—National Association of Home Builders, National Center for Seniors’ Housing Research, for a project to

improve safety and access for senior housing; $510,000—The University of Akron College of Nursing,

Akron, Ohio, to develop best practices in gerontological training, research and instruction; $723,000—Ivy Tech State College in Sellersburg, Indiana,

for a seniors technology learning program; $935,000—Landmark Medical Center in Woonsocket,

Rhode Island to support the Positive Aging Project to develop

and implement model family-centered approaches to address

the needs of the elderly; $1,000,000—West Virginia University Center on Aging to

conduct follow-up work to the Year 2000 Conference on Rural

Aging; $425,000—City of Compton, California for an elderly assistance demonstration program to support and evaluate a

community approach to providing services to low income seniors;

$900,000—Donald Reynolds Aging Center at the University of Arkansas Medical School.

Within the funds provided for state and local innovations/

projects of national significance, the conferees intend that funds be

used for ongoing projects scheduled for refunding in fiscal year

2001.

OFFICE OF THE SECRETARY

GENERAL DEPARTMENTAL MANAGEMENT

The conference agreement includes $291,075,000 for general

departmental management instead of $262,631,000 as proposed by

the House and $260,117,000 as proposed by the Senate.

Within the total provided, $50,000,000 is for minority HIV/

AIDS activities that strengthen the medical treatment and HIV

prevention capacity within communities of color disproportionately

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fection and mortality from AIDS. These funds are available to entities that target a specific minority group or multi-ethnic minority

populations that are heavily impacted by HIV/AIDS, and are to

complement existing and planned HIV/AIDS activities in communities of color. The agreement also includes bill language that requires the Secretary to submit an operating plan prior to the obligation of these funds. Within the total provided, $2,000,000 is for the United StatesMexico Border Health Commission. The conferees request the Secretary to provide the House and Senate Committees on Appropriations with a complete history of the activities and expenses of the

Commission. Also within the total provided, $400,000 is to continue

the Surgeon General’s violence initiative and $400,000 is for a

study on the feasibility of tribe compacting for the operation of Departmental programs. The agreement provides $24,327,000 for the adolescent family life program as proposed by the House instead of $19,327,000 as

proposed by the Senate. The agreement includes bill language earmarking $10,377,000 under the adolescent family life program for

activities specified under section 2003(b)(2) of the Public Health

Service Act, of which $10,157,000 shall be for prevention grants

under section 510(b)(2) of Title V of the Social Security Act, without application of the limitation of section 2010(c) of Title XX of the

Public Health Service Act. The conferees intend that this set-aside

is only for continuation costs of ongoing projects. The agreement provides $49,019,000 for minority health in- stead of $38,638,000 as proposed by the House and $37,638,000 as

proposed by the Senate. Within this total, $9,700,000 is to address

the capacity and infrastructure deficiencies within minority community based organizations in rural and historically underserved

urban communities, of which $6,600,000 is for the Technical Assistance/Capacity Development Grant Program to fund existing grants

in rural and historically underserved urban communities hardest

hit by HIV/AIDS; $500,000 is for continuation funding to the BiCultural and Bilingual Demonstration Program; and $2,600,000 is

to support existing grants through the Minority Health Coalition

program, designed to promote early intervention HIV care in minority communities and to improve the health outcomes of people

of color living with HIV disease. Also included is an increase of

$1,000,000 for the Office of Minority Health’s Center for Linguistics

and Cultural Competence in Health Care.

The agreement provides $17,270,000 for the office of women’s

health instead of $16,495,000 as proposed by the House and

$16,895,000 as proposed by the Senate. The conferees urge the office to provide funds to the National Osteoporosis Foundation to

support its complementary adolescent bone health initiative.

The agreement provides $11,668,000 for the office of emergency preparedness instead of $9,668,000 as proposed by both the

House and Senate.

The conferees include the following amounts for the following

projects and activities in fiscal year 2001:

—$50,000 for public service announcements regarding abstinence education for the County of Bucks’ Department of

Health in Doylestown, Pennsylvania;

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—$298,000 in the Office of Minority Health for the University of Maryland, Baltimore, in partnership with the Community Lead Education and Reduction Corps to prevent lead poisoning among low income and minority children; —$375,000 in the Office of Women’s Health for Spelman

College’s African-American Women’s Health and Wellness

Project; —$383,000 in the Office of Minority Health for the Trinity

Health Systems, Detroit, Michigan, to provide health care and

preventive health services for underserved minority populations and low income individuals;

—$500,000 to fund, through a contract with the National

Academy of Sciences, an evaluation on children’s health. This

evaluation should assess the adequacy of currently available

methods for assessing risks to children, identify scientific uncertainties associated with these methods, and develop a

prioritized research agenda to reduce such uncertainties and

improve risk assessment for children’s health and safety; —$500,000 for the Thomas Jefferson University Hospital

(TJUH) in Philadelphia, Pennsylvania, to continue development of its Center for Integrative Medicine, a program combining conventional medical science with promising alternative

therapies; —$461,000 for the Glaucoma Caucus Foundation to provide glaucoma screening and outreach activities; —$650,000 in the Office of Minority Health for the University of Pennsylvania School of Dentistry to develop a Minority

Oral Health Outreach program; —$638,000 for ARCH National Resource Center on Respite

and Crisis Services in Chapel Hill, North Carolina, to expand

training, technical assistance, evaluation and networking expertise in respite care; —$750,000 for the Community Transportation Association

of America to provide technical assistance;

—$680,000 in the Office of Minority Health for the Donald

R. Watkins Memorial Foundation in Houston, Texas, to enhance care for African Americans and low income individuals

with HIV/AIDS by coordinating services and expanding outreach efforts;

—$765,000 in the Office of Minority Health for the Alameda County Medical Center in California for an initiative to

reduce health disparities among uninsured, minority populations;

—$850,000 in the Office of Minority Health for the Henry

Ford Health System in Detroit, Michigan, to address the burden of chronic disease among African Americans through a network of partnerships with community organizations;

—$850,000 in the Office of Minority Health for the CORE

Center at Cook County Hospital in Chicago, Illinois, for a Community and Minority Education and Training Initiative for

HIV/AIDS;

—$935,000 in the Office of Minority Health for the Sumter

Family Health Care Center, Sumter, South Carolina to support

an innovative service delivery effort to provide health care to

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individuals with disadvantaged backgrounds, including minority populations; —$1,105,000 in the Office of Minority Health for the San

Francisco Department of Public Health to provide HIV care

and related services with an emphasis on providing care for

women and minorities;

—$1,165,000 in the Office of Minority Health for the Fresno Community Hospital and Medical Center in California for

diabetes care and outreach for Hispanic Americans and low-income individuals; and

—$1,700,000 in the Office of Minority Health for the National Council of La Raza for minority health research and outreach.

—$150,000 for the Briarpatch Transitional Living Program

in Madison, Wisconsin, to provide housing and support services

to homeless teens.

It is understood that the screening of blood and blood products

could be improved through the use of nucleic acid testing (NAT) to

better detect known infectious diseases such as Human Immunodeficiency Virus (HIV–1) and Hepatitis C virus (HCV). The National Heart, Lung and Blood Institute in the National Institutes

of Health has contracted with private companies to develop fully

automated NAT tests for HIV–1 and HCV. In view of the NIH’s financial commitment to NAT and the approval of NAT in other

countries, the Public Health Service Blood Safety Committee,

chaired by the Surgeon General/Assistant Secretary of Health, is

urged to encourage the adoption of these screening tools for individual donor testing of blood and plasma.

The conferees request that the Chief Financial Officer report to

the House and Senate Committees on Appropriations on the status

of the HHS financial audit. The conferees also request that the

Chief Information Officer report to the House and Senate Committees on Appropriations on the status of the HHS computer security

and related infrastructure protection. Both reports are to be presented to the Committees no later than March 1, 2001.

The conferees are concerned about the global AIDS pandemic

and are supportive of the Department’s international AIDS and infectious diseases efforts, especially those of CDC and NIH. The Department should continue to identify opportunities for strengthened

international collaboration with those countries heavily impacted

by HIV/AIDS and other new and emerging infectious diseases, as

well as those nations that are vulnerable to a rapid acceleration of

new cases. The Department should also coordinate its efforts with

those of the U.S. Agency for International Development (USAID) to

ensure that HHS activities are consistent with the USAID country

strategic plan, and with those of multilateral organizations such as

the World Health Organization and the Joint United Nations Programme on AIDS.

The conferees urge the Secretary to establish a program to provide information and education on autism to health professionals

and the general public as authorized in the Children’s Health Act

of 2000.

The conferees direct the Secretary of Health and Human Services, in consultation with the Director of NIH, to conduct a review

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of the eligibility of the Bermuda Biological Station for Research

(BBSR) to receive F&A recovery on NIH-supported research. The

conferees are aware that the National Science Foundation, the National Oceanic and Atmospheric Administration, the National Aeronautics and Space Administration, and the Office of Naval Research provide BBSR with direct and indirect costs of research in

peer-reviewed, competitive awards. The conferees request that the

Secretary report to the House and Senate Appropriations Committees on the status of this review.

The conferees expect the Office of Population Statistics to better coordinate with the Health Resources and Services Administration regarding family planning activities.

The conferees support the HHS agreement to provide the

Interdepartmental Task Force on AIDS with administrative support funding totalling $250,000 from within funds available to the

Department.

The conferees request the Secretary to provide a report to the

House and Senate Appropriations Committees by May 1, 2001 on

the Department’s review and action steps taken in response to the

Institute of Medicine’s report, ‘‘No Time to Lose: Getting More from

HIV Prevention.’’ This should include a review of current investments in HIV prevention as they relate to the issues raised by the

Institute of Medicine.

The conferees are aware that the Secretary is working to establish the Advisory Committee on Minority Health to assist the

Secretary in improving the health of racial and ethnic minority

groups, and encourage the Secretary to proceed expeditiously so

that the Department’s goals and program activities better reflect

the health care needs of Hispanic Americans and other racial and

ethnic minorities.

The conferees are concerned about the current situation regarding the availability and uneven distribution of influenza vaccine for the nation at a critical time for our most vulnerable populations, especially the elderly, sick and very young. The conferees

understand the Department’s role in developing influenza vaccine

each year for distribution by private industry and commend the

Department for its efforts to communicate with the American public as this unfortunate situation developed. The Secretary, through

the National Vaccine Program Office, is directed to prepare a report to the Committees on Appropriations of the House and Senate

by June 30, 2001 regarding its assessment of this year’s distribution problems along with any recommendations for changes in the

vaccine development and distribution process.

The conferees understand that the incidence of unreimbursed

health care provided to foreign nationals in U.S. hospital emergency rooms is a problem costing taxpayers millions of dollars per

year. The conferees direct the Secretary to conduct a study regarding the extent of the problem, including U.S. hospitals’ experiences

in obtaining reimbursement from foreign insurers, the identity of

foreign insurance companies who do not cooperate with or reimburse U.S. health care providers, the amount of unreimbursed services provided to foreign nationals, along with recommended solutions. This study shall be submitted to the Committees on ApproVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00168 Fmt 6601 Sfmt 6601 E:\HR\OC\HR1033.001 pfrm03 PsN: HR1033
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priations of the House and Senate no later than December 31,

2001.

OFFICE OF INSPECTOR GENERAL

The conference agreement includes $33,849,000 for the Office

of Inspector General as proposed by the Senate instead of

$31,394,000 as proposed by the House. The conferees do not include

language proposed by the House to limit the amount of funds available to the Inspector General in fiscal year 2001 under the Health

Insurance Portability and Accountability Act of 1996 (HIPAA) to

not more than $130,000,000. The Senate bill contained no similar

provision.

The agreement includes language not proposed by the House

or the Senate to allow funds to be used to provide protective services to the Secretary and investigate non-payment of child support

cases for which non-payment is a Federal offense under 18 U.S.C.

228.

OFFICE FOR CIVIL RIGHTS

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

and $23,242,000 as proposed by the Senate.

POLICY RESEARCH

The conference agreement includes $16,738,000 for policy research as proposed by both the House and the Senate. The conferees include $7,125,000 to continue the study of the

outcomes of welfare reform and to assess the impacts of policy

changes on the low-income population. The conferees recommend

that this effort include the collection and use of state-specific surveys and state and federal administration data, including data

which are newly becoming available from state surveys. These

studies should focus on assessing the well-being of the low-income

population, developing and reporting reliable state-by-state measures of family hardship and well-being and of the utilization of

other support programs, and improving the capabilities and comparability of data collection efforts. These studies should continue

to measure outcomes for a broad population of welfare recipients,

former recipients, potential recipients, and other special populations affected by state TANF policies. The conferees further expect a report on these topics to be submitted to the House and Senate Appropriations Committees by May 1, 2001.

PUBLIC HEALTH AND SOCIAL SERVICES EMERGENCY FUND

The conference agreement includes $241,231,000 for the Public

Health and Social Services Emergency Fund instead of

$254,640,000 as proposed by the House and $214,600,000 as proposed by the Senate.

The amount provided includes $181,131,000 for the Centers for

Disease Control and Prevention for the following bioterrorism and

related activities:

—$2,000,000 to continue to discover, develop, and transition anti-infective agents to combat emerging diseases;

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—$18,040,000 for the second year of a collaborative research program on the anthrax vaccine; —$32,000,000 for a national health alert network; and

—$129,950,000 for all other activities, except tobacco litigation. The conferees do not provide funding for this activity.

Regarding the anthrax study, the conferees understand that

clinical studies will be greatly facilitated by the establishment of

the Vaccine Healthcare Center Network, with the first site at Walter Reed Army Medical Center. This Network will facilitate data

collection, standardization of the anthrax immunization, training

and general data collection for this project.

The conferees recommend that CDC continue and expand the

public health preparedness center program. The remaining $60,100,000 is for the Office of Emergency Preparedness for bioterrorism-related activities.

Within the total provided for CDC, the conferees include the

following amounts for the following projects and activities in fiscal

year 2001: —$500,000 for the National Bioterrorism Civilian Medical

Response Center at Drexel University; —$750,000 for the National Rapid Response Bioterrorism

Defense Center at the University of Texas Medical Branch,

Galveston;

—$941,000 for the University of Findlay National Center

for Terrorism Preparedness to train and prepare underserved

populations and facilities to react to bioterrorism and related

incidents;

—$900,000 for the St. Louis University Center for Research and Education on Bioterrorism;

—$1,000,000 for the West Virginia University Virtual

Medical Campus, to conduct an assessment for Disaster Medical Assistance Teams, National Guard Civilian Support Teams

and hospital emergency and administrative personnel for medical preparedness and readiness for Weapons of Mass Destruction or similar events. These funds can only be used for this

purpose. A report is due to the Congress by June 30, 2001 on

this initiative;

—$900,000 for the Rhode Island Hospital disaster preparedness initiative;

—$1,400,000 for the Charlotte Mecklenburg Advanced

Local Emergency Response Team (ALERT) project in Charlotte, North Carolina;

—$1,900,000 for the Public Health Service Moble Training

Center at Fort McClellan, Alabama for bioterrorism training;

and

—$2,200,000 for the Washington Hospital Center, the University of Pennsylvania Department of Emergency Medicine,

and the University of Tennessee ER One initiative.

GENERAL PROVISIONS

NIH AND SAMHSA SALARY CAP

The conference agreement includes a provision proposed by the

House limiting the use of the National Institutes of Health and the

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Substance Abuse and Mental Health Services Administration funds

to pay the salary of an individual, through a grant or other extramural mechanism, at a rate in excess of Level I of the Executive

Schedule instead of Level II as proposed by the Senate.

ONE-PERCENT EVALUATION TAP

The conference agreement includes a provision proposed by the

House to allow for a one percent evaluation tap pursuant to section

241 of the Public Health Service Act. The Senate bill contained a

provision to allow for an evaluation tap of not more than 1.6 percent.

TRANSFER AUTHORITY

The conference agreement includes language to provide general

transfer authority for the Department of Health and Human Services. This authority was first provided in fiscal year 1996 with the

understanding that the flexibility it provides can only be carried

out when proper financial management controls and systems are in

place. However, CDC has provided Congress with inaccurate

spending data on a number of programs. While it is recognized that

CDC is working to rectify problems that have been identified, for

fiscal year 2001 the conferees are requiring a letter of reprogramming to the House and Senate Appropriations Committees and a

written response from the Committees before any transfer of funds

can be made to CDC.

The conferees reiterate that it is not the purpose of the transfer authority to provide funding for new policy proposals that can,

and should, be included in subsequent budget proposals. Absent

the need to respond to emergencies or unforeseen circumstances,

this authority cannot be used simply to increase funding for programs, projects or activities because of disagreements over the

funding level or the difficulty or inconvenience with operating levels set by the Congress.

SUBSTANCE ABUSE AND MENTAL BLOCK GRANT FORMULA ALLOCATION

The conference agreement does not include a provision proposed by either the House or the Senate regarding the distribution

of substance abuse and mental health block grant funding.

NIH OBLIGATIONS

The conference agreement does not include a provision proposed by the House to limit NIH obligations to the President’s

budget request. The Senate bill contained no similar provision.

EXTENSION OF CERTAIN ADJUDICATION PROVISIONS

The conference agreement includes a provision proposed by the

Senate to extend the refugee status for persecuted religious groups.

The House bill contained no similar provision.

MEDICARE COMPETITIVE PRICING DEMONSTRATION PROJECT

The conference agreement includes a provision proposed by the

Senate to prohibit funding to implement or administer the Medicare Prepaid Competitive Pricing Demonstration Project in Arizona

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or in Kansas City, Missouri or in the Kansas City, Kansas area.

The House bill contained no similar provision.

WITHHOLDING OF SUBSTANCE ABUSE FUNDS

The conference agreement includes a provision proposed by the

Senate to prohibit the Secretary from withholding a State’s substance abuse block grant funds if that State is not in compliance

with the requirements of the Synar Amendment. The provision also

prohibits the Secretary from withholding substance abuse funding

from a territory that receives less than $1,000,000. The House bill

contained no similar provisions.

STATE CHILDREN’S HEALTH INSURANCE PROGRAM (SCHIP)

The conference agreement does not include a provision proposed by the Senate to shift unspent fiscal year 1998 SCHIP funds

to fiscal year 2003. The House bill contained no similar provision.

SENSE OF THE SENATE REGARDING NEEDLESTICK INJURY PREVENTION

The conferees delete without prejudice a Sense of the Senate

provision regarding needlestick injury prevention. The House bill

contained no similar provision.

CLEARINGHOUSE ON SAFE NEEDLE TECHNOLOGY

The conference agreement does not include a provision proposed by the Senate to provide additional funds to the Centers for

Disease Control and Prevention to establish a clearinghouse on

safe needle technology offset by an across-the-board reduction to

travel, consulting, and printing services of the Departments of

Labor, Health and Human Services, and Education. The House bill

contained no similar provision.

REASONABLE RATE OF RETURN ON BOTH INTRAMURAL AND

EXTRAMURAL RESEARCH

The conference agreement does not include a provision proposed by the Senate to withhold funding if the Director of NIH did

not provide a proposal to require a reasonable rate of return on

both intramural and extramural research by March 31, 2001. The

House bill contained no similar provision.

STUDY ON UNREIMBURSED HEALTH CARE PROVIDED TO FOREIGN

NATIONALS

The conference agreement does not include a provision proposed by the Senate to require the Secretary to conduct a study on

the unreimbursed health care provided to foreign nationals. The

House bill contained no similar provision.

NATIONAL INSTITUTE OF CHILD HEALTH AND HUMAN DEVELOPMENT

The conference agreement includes a provision proposed by the

Senate to amend the Public Health Service Act to revise the purpose of the Institute relating to gynecologic health. The House bill

contained no similar provision.

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IMMUNIZATION INFRASTRUCTURE AND OPERATIONS ACTIVITIES

The conference agreement does not include a provision proposed by the Senate to provide additional funds to the Centers for

Disease Control and Prevention for State and local immunization

infrastructure and operations activities offset by an across-theboard reduction to administrative and related expenses of the Departments of Labor, Health and Human Services, and Education.

The House bill contained no similar provision.

ANIMAL CARE CONTRACT REQUIREMENTS

The conference agreement includes a provision proposed by the

Senate to require that the contractor hired for the care of the 288

chimpanzees acquired by NIH from the Coulston Foundation be accredited by the Association for the Assessment and Accreditation of

Laboratory Animal Care International or has PHS assurance. The

House bill contained no similar provision.

POISON PREVENTION AND CONTROL CENTERS

The conference agreement does not include a provision proposed by the Senate to provide additional funds to the Health Resources and Services Administration to provide assistance for poison prevention and control activities offset by an across-the-board

reduction to administrative and related expenses of the Departments of Labor, Health and Human Services, and Education. The

House bill contained no similar provision.

SENSE OF THE SENATE REGARDING THE DELIVERY OF EMERGENCY

MEDICAL SERVICES

The conferees delete without prejudice a Sense of the Senate

provision regarding the delivery of emergency medical services. The

House bill contained no similar provision.

SENSE OF THE SENATE REGARDING IMPACTS OF THE BALANCED

BUDGET ACT OF 1997

The conferees delete without prejudice a Sense of the Senate

provision regarding impacts of The Balanced Budget Act of 1997.

The House bill contained no similar provision.

ARKIDS

The conference agreement does not include a provision proposed by the House to prohibit the Health Care Financing Administration from revoking a waiver to the State of Arkansas that implements its own children’s health insurance plan. The Senate bill

contained no similar provision.

ABSTINENCE EDUCATION

The conference agreement includes language to prohibit the

awarding of abstinence education grants authorized in the Emergency Supplemental Act, 2000 until March 1, 2001. The House and

Senate bills contained no similar provision.

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PHYSICIANS COMPARABILITY ALLOWANCES

The conference agreement includes a provision not proposed by

either the House or the Senate to extend the authority of physicians comparability allowances for five years.

ORGAN PROCUREMENT ORGANIZATIONS

The conference agreement includes language to prohibit the

termination of the Lifelink of Puerto Rico Organ Procurement Organization, the Northeast Organ Procurement Organization and

Tissue Bank, and the Arkansas Regional Organ Recovery Agency

from participation in the Medicare and Medicaid programs for one

year from the date of enactment of this Act. The agreement further

requires that future certification be determined based upon performance information from these individual Organ Procurement

Organizations beginning on January 1, 2000. The House and Senate bills contained no similar provision.

CDC INTERNATIONAL AUTHORITY

The conference agreement includes a provision not proposed by

either the House or the Senate to provide authority to support CDC

carrying out international HIV/AIDS and other infectious and

chronic disease activities abroad.

Subsection (a)(1) is intended to allow CDC to meet relatively

short-term requirements for technical, management, and administrative personnel needs abroad through the award of personal services contracts in situations where other options, such as use of existing staff or hiring of new staff, or award of a service contract,

other than one for personal services, are ineffective and impractical. During FY 2001, the conferees expect HHS to work with the

Office of Management and Budget and other relevant agencies and

Congressional committees as appropriate to consider effective

longer-term solutions for addressing these types of needs.

Section (a)(2) is intended to ensure that the Department of

State can provide necessary support services (including Administrative Support services agreements) to support CDC’s international health programs, including the purchase of necessary laboratory equipment and the lease, repair and renovation of laboratory and other facilities.

BAYVIEW

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

Campus in Baltimore, Maryland.

OFFICE FOR HUMAN RESEARCH PROTECTIONS TRANSFER

The conference agreement includes a provision to transfer

$5,800,000 from the National Institutes of Health to the Office of

the Secretary, General Departmental Management to support the

newly established Office for Human Research Protections. This

transfer of funds implements the Secretary’s decision to move the

Office to the Department from NIH and that in the future the Department will request funding for the Office within the Office of the

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Secretary. The House and Senate bills contained no similar provision.

CLINICAL RESEARCH LOAN REPAYMENT

The conference agreement includes a provision to allow extramural clinical researchers to be included in the clinical research

loan repayment program for individuals from disadvantaged backgrounds. The House and Senate bills contained no similar provision.

ACTING DIRECTOR OF NIH

The conference agreement includes a provision to allow the

current Acting Director of NIH to remain in that position until a

new Director is confirmed by the Senate. The House and Senate

bills contained no similar provision.

NATIONAL NEUROSCIENCE RESEARCH CENTER

The conference agreement includes a provision to name the

National Neuroscience Research Center at the National Institutes

of Health the John Edward Porter Neuroscience Research Center.

TITLE II CITATION

The conference agreement includes a provision proposed by the

House to cite title II as the ‘‘Department of Health and Human

Services Appropriations Act, 2001’’. The Senate bill contained no

similar provision.

TITLE III—DEPARTMENT OF EDUCATION

EDUCATION REFORM

The conference agreement includes $1,880,710,000 for Edu- cation Reform instead of $1,505,000,000 as proposed by the House

and $1,434,500,000 as proposed by the Senate.

Parental Assistance

The conference agreement includes $38,000,000 for parental

assistance instead of $40,000,000 as proposed by the Senate. The

House did not propose funding for this program.

Education Technology

For education technology, the conference agreement includes

$872,096,000 instead of $905,000,000 as proposed by the House

and $794,500,000 as proposed by the Senate.

Technology Literacy Challenge Fund

For the Technology Literacy Challenge Fund, the conference

agreement includes $400,000,000 instead of $425,000,000 as proposed by the Senate and $517,000,000 as proposed by the House.

Technology Innovation Challenge Grants

For the Technology Innovation Challenge Grants, the conference agreement includes $136,328,000 instead of $197,500,000

as proposed by the House and $100,000,000 as proposed by the

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Senate. Within the amounts provided for Technology Innovation

Challenge Grants, the conference agreement includes $46,328,000

for the following: $921,000—to be divided equally among the Blount, Cherokee, Cullman, DeKalb, Etowah, Fayette, Franklin, Lamar,

Lawrence, Marion, Marshall, Pickens, Walker and Winston

County Boards of Education in Alabama for technology enhancements for schools;

$369,000—Harford County Magnet School, Aberdeen, MD

for technology enhancements; $92,000—Community School District 31, Staten Island, NY

for school computer lab enhancements; $147,000—Community School District 20, Brooklyn, NY

for school computer lab enhancements; $921,000—Rockford Public Schools- District 205, Rockford,

IL for Digital Community Classroom project; $207,000—Grant Joint Union High School District, Sacramento, CA for technology enhancements; $44,000—Bibb County Board of Education, AL for technology enhancements; $44,000—Calhoun County Board of Education, AL for technology enhancements; $44,000—Chambers County Board of Education, AL for

technology enhancements; $44,000—Chilton County Board of Education, AL for technology enhancements; $44,000—Clay County Board of Education, AL for technology enhancements; $44,000—Cleburne County Board of Education, AL for

technology enhancements; $44,000—Coosa County Board of Education, AL for technology enhancements; $44,000—Lee County Board of Education, AL for technology enhancements;

$44,000—Macon County Board of Education, AL for technology enhancements;

$44,000—St. Clair County Board of Education, AL for

technology enhancements;

$44,000—Talladega County Board of Education, AL for

technology enhancements;

$44,000—Tallapoosa County Board of Education, AL for

technology enhancements;

$44,000—Randolph County Board of Education, AL for

technology enhancements;

$44,000—Russell County Board of Education, AL for technology enhancements;

$44,000—Jacksonville City Board of Education, AL for

technology enhancements;

$44,000—Oxford City Board of Education, AL for technology enhancements;

$44,000—Sylacauga City Board of Education, AL for technology enhancements;

$44,000—Phenix City Board of Education, AL for technology enhancements;

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$44,000—Auburn City Board of Education, AL for technology enhancements; $44,000—Opelika City Board of Education, AL for technology enhancements; $44,000—Piedmont City Board of Education, AL for technology enhancements; $921,000—Corbin Technology and Training Center, Corbin

KY;

$921,000—Regional Technology and Training Center in

West Liberty, KY; $415,000—Cherokee County, Murphy NC for computers;

$46,000—Meredith-Dunn School, Louisville, KY for technology enhancements; $184,000—Crawford County Public Schools in Roberta GA

for technology development and equipment; $35,000—Thomas Jefferson High School for Science and

Technology, Alexandria, VA for technology enhancements; $921,000—California Institute of the Arts, Community

Arts Partnership, Santa Clarita, CA for the Digital Arts Network Project; $184,000—Travis Unified School District, Fairfield, CA for

a technology plan; $9,000,000—I CAN LEARN;

$1,800,000—Beaufort County School District in South

Carolina to continue implementing the Learning with Laptops

initiative;

$900,000—Metropolitan Regional and Technical Center in

Providence, Rhode Island to provide training and support in

computer technology through Project Family Net; $1,500,000—Tupelo Public School District in Tupelo, Mississippi to Model successful, replicable technology application

and utilization;

$2,000,000—South Carolina Educational TV in Columbia,

South Carolina for its public-private partnership established to

develop model communication tools that support the use of

technology in improving students’ reading and writing;

$1,275,000—Washington State Educational Agency in

Olympia, Washington for the Linking Educational Technology

and Educational Reform (LINKS) project to provide electronic

student learning and teacher training;

$500,000—Discovery Center in Springfield, Missouri, in

partnership with area schools, to enhance student access to

and use of technology-based learning;

$100,000—Montgomery Public School system in Montgomery, Alabama for technology upgrades at the Brewbaker

Technology Magnet High School;

$850,000—New Mexico State Department of Education for

an online advanced placement course demonstration program;

$450,000—Western Kentucky University to improve teacher preparation programs that help incorporate technology into

the school curriculum;

$680,000—Houston Independent School District in Houston, Texas to provide advanced telecommunications systems for

schools in the district;

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$500,000—McDermitt Combined School in Nevada to improve student access to and understanding of computers; $55,000—Northwood School District in Minong, Wisconsin

for distance education programs; $100,000—New Mexico State Department of Education for

a virtual school designed to increase educational access for students;

$850,000—Washington State Office of Public Instruction

for online advanced placement course development and delivery; $1,800,000—Iowa Department of Education for online advance placement course development and delivery; $2,500,000—Wheeling Jesuit University NASA Center for

Educational Technologies in West Virginia for technology

training of math and science teachers; $65,000—Reid Elementary School District in Searchlight,

Nevada for educational technology enhancements; $100,000—City of Philadelphia, Pennsylvania for technology training and access to the internet and other high-technology tools; $925,000—Marymount University in Virginia for an instructional technology program for teachers; $3,100,000—Rutgers, the State University of New Jersey,

for the RUNet 2000 project; $2,200,000—South Dakota Board of Regents to support

distance learning technology; $1,421,000—Future of the Piedmont Foundation, Regional

Education Center, Danville, VA for technology enhancements; $170,000—Santa Barbara Industry Education Council and

Santa Barbara County Education Office, California for a computers for families program; $250,000—Nicolet Distance Education Network in

Rhinelander, Wisconsin, for a distance learning initiative; $417,000—Gadsden School District in Quincy, Florida for

technology upgrades and equipment for a distance education

initiative;

$451,000—Woodburn School District, Woodburn, Oregon

for technology equipment for a distance learning center;

$489,000—Southwest Virginia Education and Training

Network, Abington, Virginia, for technology upgrades;

$561,000—Adelphi University, New York, for the Information Commons distance education initiative;

$638,000—Liberty Science Center, Jersey City, New Jersey, for technology upgrades for its partnership program with

28 school districts in New Jersey;

$723,000—Maine School Administrative District Number

64, East Corinth, Maine, for the STAR technology teacher

training project;

$723,000—The Appalachian Center for Economic Networks, Athens, Ohio, to expand a computer entrepreneurship

project;

$808,000—Detroit Educational Television Foundation, Detroit, Michigan, to deliver expanded arts educational programs

to schools through the Enrichment Channel;

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$1,169,000—Puget Sound Center for Teaching, Learning,

and Technology, Seattle, Washington, for technology training,

equipment and support; and

$100,000—Rose Tree Media School District in Pennsylvania for integrating distance learning in the classroom

through the HUBS project.

National Activities

The conference agreement includes $191,950,000 for education

technology initiatives funded under National Activities. This includes $125,000,000 for teacher training in technology, the same

amount as proposed by the Senate instead of $85,000,000 as proposed by the House. It also includes $64,950,000 to establish computer learning centers in low-income communities instead of

$32,500,000 as proposed by the House and $65,000,000 as proposed

by the Senate.

Star Schools

For Star Schools, the conference agreement includes

$59,318,000 instead of $45,000,000 as proposed by the House and

$43,000,000 as proposed by the Senate. Within the amounts provided for Star Schools, the conference agreement includes

$8,768,000 for the following:

$478,000—Winston-Salem/Forsyth County Schools, Winston-Salem, NC for Winston-Net program;

$1,290,000—Galena School District, Galena Alaska for a

distance education program;

$4,000,000—Iowa Communications Network statewide

fiber optic demonstration program; and

$3,000,000—South Dakota Department of Education and

Cultural Affairs to continue and expand the Digital Dakota

Network which provides high speed Internet and local and

wide area networking to all public K–12 schools in South Dakota.

Telecommunications demonstration project for mathematics

The conference agreement includes $8,500,000 for telecommunications demonstration project for mathematics as proposed by the Senate. The House proposed no funds. The conferees

recognize the positive work that the Public Broadcasting Service

(PBS) has done in demonstrating and evaluating the use of different technologies to provide professional development opportunities in mathematics to elementary and secondary school teachers.

While the Mathline program clearly has reached many teachers

through various media, the conferees want to ensure that the

greatest number of educators and students will benefit from this

program. The conferees encourage PBS to continue to explore cost

effective options for providing high quality professional development opportunities in core curricula to current and future teachers.

In addition, the conferees encourage PBS to continue evaluating

this program to measure the change in student academic achievement that results from teaching techniques learned through this

program.

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21st Century Learning Centers

The conference agreement includes $845,614,000 for the 21st

Century Learning Centers instead of $600,000,000 as proposed by

both the House and the Senate. Within the amounts provided for

21st Century Learning Centers, the conference agreement includes

$20,614,000 for the following:

$9,000—Thirteenth Place Youth and Family Services in

Gadsen Alabama for ‘‘The After School Program’’;

$921,000—The Community House Inc. in Hinsdale, IL for

youth programs and services;

$230,000—Boys and Girls Club of Coachella Valley in

Palm Desert, CA for after school programs;

$553,000—Boys and Girls Club of Danville, Danville IL for

youth programs;

$461,000—Fayette and Clark Counties, Kentucky for after

school programs;

$69,000—Chrysalis House Inc. in Lexington, KY for equipment related to afterschool programs;

$18,000—Goodhue Center, Staten Island, NY for an educational and technology enrichment project;

$18,000—Central Family Life Center Inc. in Staten Island

NY for after school family preservation program for tutoring

and after school;

$23,000—Jewish Community Center of Staten Island, NY

for an after school program;

$41,000—Catholic Youth Organization Inc., Staten Island

NY for an after school program;

$92,000—Boys and Girls Club of Rochester, MN for Project

Learn;

$23,000—Children’s Museum of Elizabethtown, KY for

after school programming;

$921,000—Boys and Girls Clubs of Santa Clarita Valley,

Santa Clarita, CA for youth development programs;

$9,000—First Gethsemane Center for Family Development, Louisville, KY for tutoring program;

$18,000—Summerbridge, Louisville, KY for tutoring program;

$14,000—New Creations Development Programs, Inc.,

Louisville, KY for tutoring/mentoring program;

$18,000—New Zion Community Development Foundation,

Louisville, KY for after school mentoring program;

$18,000—Robbie Valentine Stars Club Education Program,

Louisville, KY for mentoring programs;

$14,000—Shiloh Community Renewal Center in Louisville,

KY for after school and summer tutoring;

$276,000—Tulare County Office of Education, Visalia, CA

for a Summer Youth program;

$691,000—West-End YMCA Association, Ontario, CA for

after school programming;

$250,000—Big Brothers/Big Sisters of America to expand

its school-based mentoring program to the State of New Hampshire;

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$250,000—City of Portland, Oregon to increase student

achievement and family involvement with children through its

Schools Uniting Neighborhoods program; $350,000—Cranston Public School District in Cranston,

Rhode Island, in collaboration with community partners, to improve parental participation in student learning and enhance

the use of technology in after school programs; $200,000—Discovery Center in Springfield, Missouri for

expansion of science education programs available to at risk

youth; $375,000—Bibb County Board of Education in Macon,

Georgia for after school programming; $200,000—John A. Logan College to develop a community

learning center in rural Southern—Illinois; $100,000—Project 2000 for mentoring and other support

services for low-income and inner-city students in the District

of Columbia;

$250,000—Holy Redeemer Health System in Philadelphia,

Pennsylvania for after school programs for at risk children; $1,100,000—State of Alaska for extended learning opportunities for school children provided through the Right Start program; $400,000—National Ten-Point Leadership Foundation in

Boston, MA to address the mentoring needs of at-risk innercity youth; $425,000—Clark County School District, Las Vegas, Nevada for an after school community learning center; $293,000—Centennial School District, Circle Pines, Minnesota, for an after school program; $213,000—City School District of New Rochelle, New York,

for an after school program; $370,000—Abbotsford School District, Abbotsford, Wisconsin, for an after school program; $213,000—Community School District 24, Glendale, New

York for before- and after-school programs;

$213,000—Community School District 28, Forest Hills,

New York for an after school program;

$213,000—Community School District 30, Jackson

Heights, New York for an after school program;

$60,000—Crosby Independent School District in Barrett

Station, Texas, for an after school program;

$85,000 Eastchester Union Free School District,

Eastchester, New York for an after school program;

$128,000—Fontana Unified School District, Fontana, California, for the educational component of a teen center for atrisk youth;

$234,000—Sauk Prairie Schools, Sauk City, Wisconsin for

an after school program;

$468,000—Hastings Public Schools, Hastings, Minnesota,

for an after school program;

$750,000—Hayward Community School District, Hayward,

Wisconsin for an after school;

$191,000—Independence School District, Independence,

Missouri, to expand before and after school programs;

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$510,000—Macomb County Intermediate School District,

Michigan for the ‘‘Kids Klub’’ after school program;

$1,275,000—Milwaukee Public Schools, Wisconsin, for

after school programs;

$170,000—New London Public Schools, New London, Connecticut, for an after school program;

$298,000—New York Hall of Science in Queens, New York

for an after school program;

$629,000—Pojoaque Valley Schools in Pojoaque, New Mexico for the Para Los Ninos after school consortium;

$213,000—Port Chester-Rye Union Free School District,

Port Chester, New York for an after school program;

$850,000—Rock Island County Regional Office of Education, Moline, Illinois for after school programs in the MolineCoal Valley School District and the Rock Island-Milan School

District;

$361,000—South Washington County Schools, Cottage

Grove, Minnesota, for an after school program;

$340,000—St. Clair County Intermediate School District,

Michigan for the ‘‘Kids Klub’’ after school program;

$230,000—St. Francis School District, Milwaukee, Wisconsin for an after school program;

$1,300,000—Wausau School District, Wausau, Wisconsin,

for an after school program;

$170,000—Windham Public Schools, Willimantic, Connecticut, for an after school program; and

$2,500,000—Expansion of Gallery 37 after school programming in Chicago, Illinois.

The conference agreement includes bill language stating that

the Secretary shall strongly encourage applications for 21st Century Community Learning Center grants to be submitted jointly by

a local educational agency (or a consortium of local educational

agencies) and a community-based organization, including public or

private entities with demonstrated effectiveness in providing educational or related services to individuals in the community, such

as child care providers, youth development organizations (such as

YMCAs, the Boys and Girls Clubs, Big Brothers Big Sisters of

America, Camp Fire Boys and Girls, and the Girl Scouts), museums, libraries, and Departments of Parks and Recreation. In including this language, the conferees intend that the Secretary shall

strongly encourage joint applications in order to promote local collaboration and coordination of services. This is especially important

where more than one application is received proposing to serve the

same community. Additionally, the language requires all applications submitted to the Secretary to contain evidence that the

project includes elements that are designed to assist students to

meet or exceed State and local standards in core academic subjects,

as appropriate to the needs of participating children. The Senate

bill included language stating that a community-based organization

that has experience in providing before- and after-school services

shall be eligible to receive a grant on the same basis as a school

or consortium, and stating that the Secretary shall give priority to

any applications jointly submitted by a community-based organizaVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00182 Fmt 6601 Sfmt 6601 E:\HR\OC\HR1033.001 pfrm03 PsN: HR1033
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tion and a school or consortium. The House bill contained no similar language.

Small Schools

The conference agreement includes $125,000,000 for the Small,

Safe and Successful Schools initiative authorized under section

10105 of part X of the Elementary and Secondary Education Act.

The House bill included funding for this initiative under the Fund

for the Improvement of Education and the Senate bill proposed no

funding.

The conferees agree that these funds shall be used only for activities related to the redesign of large high schools enrolling 1,000

or more students, and that this initiative shall continue to be jointly managed by the Office of Elementary and Secondary Education

and the Office of Vocational and Adult Education.

EDUCATION FOR THE DISADVANTAGED

The conference agreement includes $9,532,621,000 for Education for the Disadvantaged instead of $8,986,800,000 as proposed

by the Senate and $8,816,986,000 as proposed by the House. The

agreement includes advance funding for this account of

$6,758,300,000 instead of $6,204,763,000 as proposed by the House

and $6,223,342,000 as proposed by the Senate.

For Grants to Local Educational Agencies (LEAs) the agreement provides $8,601,721,000 instead of $8,335,800,000 as provided

by the Senate and $7,941,397,000 as provided by the House. Of the

funds made available for basic grants, $5,394,300,000 becomes

available on October 1, 2001 for the academic year 2001–2002.

The conference agreement includes $7,237,721,000 for basic

grants and $1,364,000,000 for concentration grants. For fiscal year

2001, $1,158,397,000 was advance funded in the fiscal year 2000

Departments of Labor, Health and Human Services and Education

and Related Agencies Act (P.L. 105–227). The funding of

$1,364,000,000 for concentration grants is advanced for fiscal year

2002.

The conferees have included $225,000,000 for school improvement activities under section 1116(c) of the Elementary and Secondary Education Act (ESEA) of 1965 to assist low performing

schools under Title I of ESEA. School improvement activities are

those measures designed to help turn around low performing

schools. One hundred percent of the funds provided for these activities are to be allocated by states to school districts.

The conferees have also included a requirement that all school

districts receiving funds under Part A of Title I shall provide students in low performing Title I schools with the option to transfer

to another public school or public charter school in the school district, unless prohibited by state or local law or policy. Local educational agencies located within States that qualify for the small

state minimum under Title I Part A are not required to comply

with this requirement, but may comply if they so choose.

The conference agreement includes $6,000,000 for capital expenses for private school children as proposed by the Senate. The

House bill contained no funding for this program.

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The conference agreement includes $250,000,000 for the Even Start program as proposed by the House instead of $185,000,000 as

proposed by the Senate. The conference agreement includes $380,000,000 for the migrant education program as proposed by the Senate instead of

$354,689,000 as proposed by the House. The agreement also includes $46,000,000 for neglected and delinquent youth instead of

$50,000,000 as proposed by the Senate and $42,000,000 as proposed by the House. The conference agreement includes $8,900,000 for evaluation of

title I programs as proposed by the House. The Senate bill did not

propose funding for this activity. The conference agreement includes $210,000,000 for the comprehensive school reform demonstration program instead of

$190,000,000 as proposed by the House. The Senate bill did not

propose funding for this activity. The conferees direct the Department to follow the directives in the report accompanying the fiscal

year 1998 bill (House Report 105–390) and in the conference report

accompanying the fiscal year 1999 bill (House Report 105–825) in

administering this program.

For the education for the disadvantaged program, the agreement includes a provision not contained in either House or Senate

bills which allows each state and local educational agency (LEA) to

receive the greater of either the amount it would receive at specified levels under the 100% hold harmless contained in the Senate

bill or what it would receive using the statutory formulas. This

comparison is intended to be used for allocating funds in fiscal year

2001 for both basic and concentration grants. The conferees expect

the Department to use updated demographic and financial expenditure data in determining allocations when such data becomes available. The Senate bill included a 100% hold harmless for States and

LEAs for both basic and concentration grants. The House bill contained no similar provision.

The conferees adopt language included in the Senate bill providing that the Department shall make 100% hold harmless

awards to LEAs that were eligible for concentration grants in 2000,

but are not eligible to receive grants in fiscal year 2001.

The conferees also adopt language included in the Senate bill

providing that the Secretary of Education shall not take into account the 100% hold harmless provision in determining State allocations under any other program. The House bill did not contain

these hold harmless provisions.

IMPACT AID

The conference agreement includes $993,302,000 for the Impact Aid programs instead of $985,000,000 as proposed by the

House and $1,075,000,000 as proposed by the Senate. For basic

grants the agreement includes $882,000,000; for payments for children with disabilities the conferees include $50,000,000. The agreement also includes $8,000,000 for facilities maintenance,

$12,802,000 for construction, and $40,500,000 for payments for federal property. The conferees note that funds for basic grants and

payments for heavily impacted districts are combined pursuant to

the provisions of the Impact Aid Reauthorization Act of 2000.

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Sufficient funding is provided within the account for construc- tion for the following: $1,981,000 for the North Chicago Community

Unit School District 187; $921,000 for the Wheatland School District, Wheatland, California; $400,000 for Brockton Elementary

Public School District in Montana; $2,600,000 for Craig School District in Alaska; and $900,000 for Cannon Ball Elementary School

on Standing Rock Sioux Reservation in Cannon Ball, North Dakota.

The conferees also include the following language provisions:

timely filing of an application by the Academy School District 20

in Colorado; restoration of payments to school districts affected by

a section 8002 cap in 1998; and deeming eligibility for Kadoka

School District in South Dakota. Neither the House nor Senate

bills contained similar provisions.

SCHOOL IMPROVEMENT PROGRAMS

The conference agreement includes $4,872,084,000 for School Improvement Programs instead of $3,165,334,000 as proposed by

the House and $4,672,534,000 as proposed by the Senate. The

agreement provides $3,107,084,000 in fiscal year 2001 and

$1,765,000,000 in fiscal year 2002 funding for this account.

Eisenhower professional development state and local activities

For Eisenhower professional development state and local ac- tivities, the conferees provide $485,000,000. The House bill provided $1,750,000,000 for the Teacher Empowerment Act, subject to

authorization, which included funds previously dedicated to the Eisenhower professional development programs. The Senate bill provided $435,000,000.

The conference agreement includes bill language providing

that a local educational agency shall use funds received in excess

of the allocation received for the preceding fiscal year to improve

teacher quality by reducing the percentage of teachers who are

uncertified, teaching out of field, or who lack sufficient content

knowledge to teach effectively in the areas they teach. These additional funds may be used for mentoring programs for new teachers,

to provide opportunities for teachers to participate in multi-week

institutes, such as those offered in the summer months that provide intensive professional development and to implement incentives to retain quality teachers who have a record of success in

helping low-achieving students improve their academic success.

State educational agencies and State agencies for higher education

may also use additional funds provided in excess of the allocation

received for the preceding fiscal year for multi-week institutes,

such as those provided in the summer months, that provide intensive professional development in partnership with local educational

agencies, and to provide grants to recruit, prepare, retain, and

train school principals and superintendents, especially individuals

serving or intending to serve in high-poverty, low-performing

schools and districts.

The conference agreement also includes $45,000,000 within the

amount for Eisenhower state grants to be available to States to

support efforts to meet the requirements under section 1111 of title

I of the Elementary and Secondary Education Act of 1965 or the

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requirements for State eligibility for the Ed-Flex Partnership Act

of 1999.

Eisenhower professional development national activities

The conference agreement provides $44,000,000 for Eisenhower

professional development national activities under this account.

Early Childhood Educators.—Within the funds available for

Eisenhower professional development national activities, the conference agreement includes $10,000,000 for training early childhood educators and caregivers in high-poverty communities to focus

on professional development activities to further children’s language and literacy skills to help prevent them from encountering

reading difficulties once they enter school.

Teacher Recruitment Initiatives.—Within the funds available

for Eisenhower professional development activities, the conference

agreement also includes $34,000,000 for new teacher recruitment

initiatives. The conferees believe that an expanded effort to get

more talented individuals from non-traditional routes into classrooms is warranted and is an efficient means to get highly skilled

people into schools at a time when the demand for these skills is

the greatest. For example, the conferees acknowledge that the

Troops to Teachers and Teach for America programs have been innovative models for recruiting qualified, nontraditional candidates

into teaching and offer viable solutions to our nation’s need to hire

over 2.2 million teachers over the next ten years to replace veteran

retiring teachers and to accommodate additional student enrollment.

Of the amount made available for teacher recruitment initiatives, $3,000,000 shall be available to the Secretary for transfer to

the Defense Activity for Non-Traditional Education Support of the

Department of Defense (Troops-to-Teachers). The remaining

$31,000,000 available for teacher recruitment initiatives shall be

available for grants as described in the prior paragraph for local

educational agencies, State educational agencies, educational service agencies, or nonprofit agencies and organizations, including organizations with expertise in teacher recruitment, or partnerships

comprised of these entities to recruit, prepare, place and support

mid-career professionals from diverse fields who possess strong

subject matter skills to become teachers, particularly in high-need

fields such as mathematics, science, foreign languages, bilingual

education, reading, and special education; and to attract, recruit,

screen, select, train, place and provide financial incentives to recent

college graduates with outstanding academic records and a baccalaureate in a field other than education to become fully qualified

teachers through nontraditional routes.

Innovative education program strategies

For innovative education program strategies, title VI of the Elementary and Secondary Education Act of 1965, the conference

agreement includes $385,000,000 instead of $3,100,000,000 as proposed by the Senate and $365,750,000 as proposed by the House.

The conferees support the use of funds appropriated under section 6301(b) to provide single-sex school or classroom programs provided that the recipient ‘‘complies with applicable law,’’ a phrase

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intended to incorporate all relevant Supreme Court opinions, including U.S. v. Virginia, 116 S. Ct. 2264 (1996), as proposed by the

Senate. The House bill contained no similar provision. The conferees intend that this provision does not require local educational

agencies to use title VI funds only for gender equity activities.

Class size

The conference agreement includes $1,623,000,000 to continue

the initiative to reduce class size that was begun in fiscal year

1999. The House bill provided $1,750,000,000 for the Teacher Empowerment Act, subject to authorization. The Senate bill provided

$3,100,000,000 for activities to improve teacher quality, reduce

class size, and renovate school facilities and to carry out activities

under title VI of the Elementary and Secondary Education Act of

1965.

The conference agreement provides that the allocation of funds

under section 306 to the States shall be based on the proportional

share that each State received from the fiscal year 1999 appropriation for class size reduction. States will continue to allocate their

grant funds among local educational agencies based on a formula

that reflects both their relative numbers of children in low-income

families and their school enrollments.

Local educational agencies would use funds for recruiting, hiring and training fully qualified regular and special education teachers who are certified within the States, have a baccalaureate degree and demonstrate subject matter knowledge in their content

areas. Twenty five percent of these funds may be used by local educational agencies to test new teachers for academic content knowledge, to meet State certification requirements, or to provide professional development for existing teachers. In addition, local educational agencies may use these funds for carrying out activities

authorized under section 2210 of the Elementary and Secondary

Education Act of 1965 (the Eisenhower Professional Development

program); mentoring programs for new teachers; providing opportunities for teachers to attend multi-week institutes, such as those

provided in the summer months, that provide intensive professional development in partnership with local educational agencies;

and carrying out initiatives to promote the retention of highly

qualified teachers who have a record of success in helping lowachieving students improve their academic success. Such activities

shall have the goal of ensuring that all instructional staff are fully

qualified.

A local educational agency that has already reduced class size

in the early grades may use its funds to make further reductions

in grades kindergarten through 3 or other grades, or carry out activities to improve teacher quality. A local educational agency in

which 10 percent or more of its elementary teachers have not met

applicable State and local certification requirements (including certification through State or local alternative routes), or if such requirements have been waived, may use 100 percent of funds under

this program for the purpose of helping those teachers become certified or to help teachers who lack sufficient content knowledge to

teach effectively in the areas they teach to obtain that knowledge.

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A local educational agency must notify the State educational agency of the percentage of funds it will use for these purposes.

A local educational agency that receives an award under this

section that is less than the starting salary for a new teacher may

use these funds to help pay the salary of a teacher or pay for professional development activities to ensure that all the instructional

staff are fully qualified.

To improve accountability, the conference agreement maintains

language included as part of last year’s appropriations law requiring that each State and local educational agency receiving funds

publicly report to parents on their progress in reducing class size

and in increasing the percentage of classes in core academic areas

taught by fully qualified teachers, and on the impact that such activities have had on increasing student academic achievement. Parents, upon request, will also have the right to know the professional qualifications of their children’s teachers.

The conference agreement requires the Secretary of Education

to inform local educational agencies of the additional flexibility provided to local educational agencies in which more than 10 percent

of their teachers are not fully qualified to spend all of these funds

on professional development activities. The conferees also intend

that the Secretary notify local educational agencies of the flexibility

provisions already incorporated into the class size reduction initiative, including the ability of local educational agencies to use up to

25 percent of local educational agency allocations on professional

development activities; to spend funds on professional development

for existing teachers if the local educational agency receives an

award that is less than the starting salary for a new fully qualified

teacher; and to spend funds to reduce class sizes in other grades

or to improve teacher quality if the local educational agency has already reduced class sizes in the early grades to 18 or fewer children.

School renovation

The conference agreement includes $1,200,000,000 for grants

to local educational agencies for emergency school renovation and

repair activities; activities under part B of the Individuals with

Disabilities Education Act (IDEA); and technology activities. The

House bill provided no funding for this activity. The Senate bill

provided $3,100,000,000 for activities to improve teacher quality,

reduce class size, renovate school facilities and to carry out activities under title VI of the Elementary and Secondary Education Act

of 1965.

The conference agreement provides $75,000,000 of the

$1,200,000,000 for formula grants to local educational agencies

with at least 50 percent of their student population living on Native American or Native Alaskan lands. These funds may be used

for school renovations and repairs, as well as new construction activities, which may include construction of new facilities for specialized programs such as vocational-technical education and the installation of plumbing, sewage and electrical systems. For some of

the schools in these local educational agencies, new construction

may represent a more prudent use of resources than the repair or

renovation of existing structures.

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The conference agreement provides $3,250,000 of the $1,200,000,000 for grants to local educational agencies in outlying

areas for the renovation and repair of high-need schools. The conference agreement provides $25,000,000 for a new

Charter Schools Facilities Financing Demonstration Program authorized as subpart 2 of part C of title X of the Elementary and

Secondary Education Act (ESEA). Charter schools are break-themold public schools that are free of bureaucratic red tape, and accountable for academic results. Many of these innovative schools

receive no assistance from their states for capital financing expenses, or at best, only a modest amount of assistance for capital

expenses. Furthermore, in most states, charter schools do not have

bonding authority or a tax base for capital financing.

The Charter School Facilities Financing Demonstration Program would establish a credit enhancement demonstration program for the acquisition, renovation, or construction of public charter schools. Non-profit private entities (including those that benefit

Native Alaskans), public entities, or consortia of the two entities

would compete for one-time grants to be used to establish reserve

funds to leverage private capital. For example, the reserve funds

could be used for activities such as guaranteeing bonds, notes, or

leases; encouraging private lending; or facilitating the issuance of

bonds. The conferees intend that the Secretary of Education widely

disseminate information gleaned from these demonstration efforts

with a view toward these demonstrations serving as models for replication in states with charter schools.

The conference agreement provides that the remaining funds ($1,096,750,000) would be distributed to State educational agencies

based on the title I, part A allocations under the Elementary and

Secondary Education Act, with a small state minimum of one half

of one percent. After allowing for not more than one percent set

aside at the state level for administrative expenses, the State educational agency or other entity with jurisdiction over school facilities financing, as the case may be, would distribute 75 percent of

the state’s funds to local educational agencies through competitive

grants for emergency school repair and renovation activities.

The state educational agency or other responsible entity would

ensure, through a competitive grant process, that high poverty

local educational agencies receive, in the aggregate, shares of the

state allocation of Federal emergency repair and renovation funds

that are proportionate to their share of the state allocation of title

I, part A funds. For the purposes of this program high poverty

school districts are considered to be those with 30 percent or greater child poverty or 10,000 or greater poor children. The state educational agency or entity would also ensure that rural local educational agencies receive, in the aggregate, shares of the state allocation of Federal emergency repair and renovation funds that are

proportionate to their share of title I, part A funds. Each state

shall determine which local educational agencies within the state

qualify as rural for the purposes of this program.

Those local educational agencies eligible to compete for an

emergency repair and renovation grant either because of their high

poverty status or their rural status, but who do not actually receive

a grant, may be considered for a grant from the remaining funds

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for repair and renovation activities. Additionally, local educational

agencies not eligible to receive a grant because of their lack of high

poverty or rural status may be considered for a grant from the remaining repair and renovation funds.

These funds may be used by local educational agencies to meet

the requirements of federal mandates such as the Americans with

Disabilities Act, Section 504 of the Rehabilitation Act, and asbestos

abatement requirements. Funds may also be used for the renovation, acquisition, and repair of charter schools and for emergency

renovations or repairs to public school facilities to ensure the

health and safety of students and staff (repairing, replacing, or installing roofs, electrical wiring, plumbing systems, or sewage systems; repairing, replacing, or installing heating, ventilation, or air

conditioning systems, including insulation; and bringing schools

into compliance with fire and safety codes).

The conference agreement clarifies that public charter schools

that are considered to be a local educational agency under state

law are eligible to compete for renovation and repair funds from

the state in the same manner as local educational agencies. In addition, public charter schools that are not considered to be a local

educational agency are eligible to receive assistance, in the same

manner as a public school, from a local educational agency that is

awarded a grant under this section.

The conference agreement provides for the equitable participation of non-profit, private elementary and secondary schools in repair and renovation activities. The eligible non-profit, private elementary and secondary schools would be limited to those schools

with a child poverty rate of 40 percent or greater. Private school

participation, in general, would be controlled by section 6402 of the

Elementary and Secondary Education Act (ESEA), which provides

for the equitable participation of children enrolled in non-profit private elementary and secondary schools in the title VI block grant

program of ESEA. This provision would allow these schools to receive the following services: (1) modifications of private school facilities in order to meet the standards under the Americans with

Disabilities Act; (2) modifications of private school facilities to meet

the standards under Section 504 of the Rehabilitation Act; and (3)

asbestos abatement or removal from such school facilities.

The conference agreement includes a prohibition on using federal emergency repair and renovation funds to supplant state and

local funds available for repair and renovation. However, federal

funds used for compliance with the Americans with Disabilities Act

and Section 504 of the Rehabilitation Act would not be subject to

a supplement, not supplant requirement. While schools are required to make facilities modifications to ensure accessibility and

should have already made these modifications, it is most important

that these modifications be made. Minimizing the restrictions

placed upon federal funds for these purposes can help ensure that

school buildings become accessible to disabled individuals.

The conference agreement also provides for flexibility in the

use of funds by local educational agencies. State educational agencies would distribute 25 percent of the funds they receive to local

educational agencies through a competitive grant process for activities under part B of IDEA, technology activities, or both IDEA and

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technology activities. State educational agencies would base the

grant awards for IDEA activities upon the need of a local educational agency for additional funds due to substantially high costs

associated with serving a child with a disability; the costs of special

education and related services, including transportation as needed

to assist a child with a disability to benefit from special education;

the costs of assistive technology devices and services, and the costs

associated with helping children with disabilities progress toward

state performance goals and indicators. State educational agencies

would base the technology grant awards upon the need of a local

educational agency for additional funds for technology activities

carried out in connection with school repair and renovation, including wiring; acquiring hardware and software; acquiring

connectivity linkages and resources; and acquiring microwave, fiber

optics, cable, and satellite transmission equipment.

Under the conference agreement, local educational agencies

choose whether to apply for an IDEA grant, a technology grant, or

both categories of grants. Local educational agencies that receive

competitive grants for activities authorized under part B of IDEA

would be required to use the grant funds in compliance with the

provisions of that part. This requirement includes providing for the

participation of private school children eligible for IDEA services.

Technology activities would be for technology activities carried out

in connection with school repair and renovation and include wiring;

acquiring hardware and software; acquiring connectivity linkages

and resources; and acquiring microwave, fiber optics, cable, and

satellite transmission equipment.

Safe and drug free schools

The conference agreement includes $644,250,000 for the Safe

and Drug Free Schools and Communities Act instead of the

$599,250,000 as proposed by the House and $642,000,000 as proposed by the Senate. Included within this amount is $439,250,000 for state grants

as proposed by the House and $447,000,000 as proposed by the

Senate.

The agreement also includes $155,000,000 for national programs instead of $145,000,000 as proposed by the Senate and

$110,000,000 as proposed by the House. Within this amount, the

conferees include $117,000,000 to support the Safe Schools/Healthy

Students initiative. Within the funds for national programs, the

agreement also provides $10,000,000 to remain available until expended for Project School Emergency Response to Violence to provide services to local educational agencies in which the learning environment has been disrupted due to a violent or traumatic crisis.

Reading is fundamental

For the Reading is Fundamental program, the conference

agreement provides $23,000,000 as proposed by the Senate instead

of $21,000,000 as proposed by the House.

Arts in education

For Arts in Education, the conference agreement includes

$28,000,000 instead of $16,500,000 as proposed by the House and

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$18,000,000 as proposed by the Senate. The conferees provide that

within this total, $6,500,000 is for VSA arts, $5,500,000 is for the

John F. Kennedy Center for the Performing Arts, $2,000,000 is to

be used to continue a youth violence prevention initiative, and

$10,000,000 is to be used for the Secretary to make grants to school

districts, state educational agencies, institutions of higher education and/or state and local non-profit arts organizations for activities authorized under subpart 1 of the Arts in Education program, particularly for supporting model projects and programs that

integrate arts education into the regular elementary and secondary

school curriculum and that provide for the development of model

preservice and inservice professional development programs for

arts educators and other instructional staff. In addition, $2,000,000

is for model professional development programs for music educators and $2,000,000 is for activities authorized under subpart 2

of the Arts in Education program.

Education for homeless children and youth

The conference agreement includes $35,000,000 for Education

for Homeless Children and Youth instead of $32,000,000 as proposed by the House and $31,700,000 as proposed by the Senate.

Education of Native Hawaiians

The conference agreement includes $28,000,000 for the Education of Native Hawaiians as proposed by the Senate instead of

$23,000,000 as proposed by the House. When making awards for

this program, the Department should provide: $6,500,000 for curricula development, teacher training, and recruitment programs,

including native language revitalization (for which the conferees

encourage priority to be given to the University of Hawaii at Hilo

Native Language College), aquaculture, prisoner education initiatives, waste management, computer literacy, big island astronomy,

and indigenous health programs; $1,600,000 for community-based

learning centers; $3,200,000 for the native Hawaiian higher education program; $500,000 for the native Hawaiian education councils; and $10,900,000 for family based education centers, including

early childhood education for native Hawaiian children. If the Department proposes to provide 10% less than the stated amounts for

any activity within this program, it must notify the House and Senate Committees on Appropriations at least 90 days prior to the end

of the fiscal year.

Alaska Native educational equity

The conference agreement includes $15,000,000 for the Alaska

Native Educational Equity program as proposed by the Senate instead of $13,000,000 as proposed by the House. From the increase

in funds provided over the fiscal year 2000 level, $1,000,000 shall

be for the Alaska Humanities Forum for operation of the Rose student exchange program and $1,000,000 shall be for the Alaska Native Heritage Center for support of its cultural education programs.

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Charter schools

The conference agreement includes $190,000,000 for Charter Schools instead of $175,000,000 as proposed by the House and

$210,000,000 as proposed by the Senate.

READING EXCELLENCE

The conference agreement includes $286,000,000 for activities

authorized under the Reading Excellence Act as proposed by the

Senate instead of $260,000,000 as proposed by the House. The

agreement provides $91,000,000 in fiscal year 2001 and

$195,000,000 in fiscal year 2002 funding for this account.

INDIAN EDUCATION

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

proposed by the House.

BILINGUAL AND IMMIGRANT EDUCATION

The conference agreement includes $460,000,000 for Bilingual and Immigrant Education programs instead of $406,000,000 as proposed by the House and $443,000,000 as proposed by the Senate.

For instructional services, the conference agreement includes $180,000,000 as proposed by the Senate instead of $162,500,000 as

proposed by the House. For support services, the agreement provides $16,000,000 instead of $14,000,000 as proposed by both the

House and the Senate. For professional development, the conference agreement includes $100,000,000 instead of $85,000,000 as

proposed by the Senate and $71,500,000 as proposed by the House.

For immigrant education, the conference agreement includes

$150,000,000 as proposed by both the House and the Senate. The

agreement also provides $14,000,000 for foreign language assistance as proposed by the Senate instead of $8,000,000 as proposed

by the House.

SPECIAL EDUCATION

The conference agreement includes $7,439,948,000 for Special Education instead of $7,353,141,000 as proposed by the Senate and

$6,550,161,000 as proposed by the House. The agreement provides

$2,367,948,000 in fiscal year 2001 and $5,072,000,000 in fiscal year

2002 funding for this account. Included in these funds is $6,339,685,000 for Grants to States

part B instead of $6,279,685,000 as proposed by the Senate and

$5,489,685,000 as proposed by the House. This funding level provides an additional $1,350,000,000 to assist the States in meeting

the additional per pupil costs of services to special education students.

The conference agreement includes $383,567,000 for Grants for

Infants and Families as proposed by the Senate instead of

$375,000,000 as proposed by the House.

The conference agreement includes $49,200,000 for state program improvement grants instead of $45,200,000 as proposed by

the House and $35,200,000 as proposed by the Senate. The agreement includes $77,353,000 for research and innovation instead of

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$64,433,000 as proposed by the House and $74,433,000 as proposed

by the Senate. Within the amounts provided for Special Education

Research and Innovation, the conference agreement includes

$7,353,000 for the following: —$921,000 for the University of Louisville Research Foundation, Louisville, KY for research in pediatric sleep disorders

and learning disabilities; —$461,000 for the University of Northern Iowa, Cedar

Falls, IA, National Institute of Technology for Inclusive Education for expanded outreach efforts; —$1,421,000 for the Salt Lake City Organizing Committee

or to a governmental agency or a not-for-profit organization

designated by the Salt Lake City Organizing Committee for the

2002 Paralympic Games; —$1,600,000 to the National Easter Seals Society for providing training, technical support, services and equipment

through the Early Childhood Development Project in the Mississippi Delta Region; —$1,000,000 for the University of Northern Colorado’s National Center for Low Incidence Disabilities in Greeley, Colorado to demonstrate innovative and effective approaches to

teaching special education students;

—$500,000 for the Baird Center in Burlington, Vermont

for a national demonstration to educate students with serious

emotional and behavioral problems;

—$750,000 for the Center for Literacy and Assessment at

the University of Southern Mississippi to increase its research

dissemination, teacher and parent training, development of

replicable models for reading assessment and intervention;

—$250,000 for the Hebrew Academy for Special Children

in Parksville, New York to continue its demonstration program

to enhance the academic and social outcomes of developmentally disabled children; and —$450,000 for Parents, Inc. in Alaska to train teachers

and specialists in the use of technology to support service delivery to children with disabilities in rural Alaska.

The conference agreement includes $53,481,000 for technical assistance and dissemination instead of $45,481,000 proposed by

both the House and the Senate. The agreement also includes

$26,000,000 for parent information centers as proposed by the Senate instead of $22,000,000 as proposed by the House. Included in the agreement is $37,210,000 for technology and media services instead of $36,410,000 as proposed by the House

and $35,323,000 as proposed by the Senate. The agreement includes $9,500,000 for Recordings for the Blind and Dyslexic for the

purposes described in both the House and Senate reports.

The agreement also includes $1,500,000 for Public Telecommunications Information and Training Dissemination as proposed by the Senate. The House bill did not contain funds for this

activity.

REHABILITATION SERVICES AND DISABILITY RESEARCH

The conference agreement includes $2,805,339,000 for Rehabilitation Services and Disability Research instead of

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$2,776,803,000 as proposed by the House and $2,799,519,000 as

proposed by the Senate.

The conference agreement includes $11,647,000 for client assistance state grants instead of $10,928,000 as proposed by the

House and $11,147,000 as proposed by the Senate. The agreement

also includes $21,092,000 for demonstration and training programs

instead of $16,492,000 as proposed by the House and $21,672,000

as proposed by the Senate.

The conference agreement includes $2,350,000 for migrant and

seasonal farmworkers as proposed by the House instead of

$2,850,000 as proposed by the Senate. The agreement also includes

$14,000,000 for Protection and Advocacy of Individual Rights as

proposed by the House instead of $13,000,000 as proposed by the

Senate.

The conference agreement includes $20,000,000 for services for

older blind individuals as proposed by the Senate instead of

$18,000,000 as proposed by the House. The agreement also includes $8,717,000 for the Helen Keller Center for Deaf/Blind as

proposed by the Senate instead of $8,550,000 as proposed by the

House.

The conference agreement includes $100,400,000 for the National Institute for Disability and Rehabilitation Research instead

of $86,462,000 as proposed by the House and $95,000,000 as proposed by the Senate. Within this amount, the conference agreement

includes $400,000 for the Cerebral Palsy Foundation in Wichita,

Kansas.

The conference agreement includes $41,112,000 for Assistive

Technology as proposed by the Senate instead of $34,000,000 as

proposed by the House. The conference agreement includes language which overrides the authorizing statute to provide

$22,069,000 for State Assistive Technology projects, a total of

$2,680,000 for grants to protection and advocacy systems (a minimum grant of $50,000 each) and $1,363,000 for technical assistance activities to support States in sustaining and strengthening

their capacity to address the assistive technology needs of individuals with disabilities. This language was not included in either the

House or Senate bills.

The agreement also retains language from the Senate bill

which changes the matching requirements and funding provisions

under title III of the Assistive Technology Act of 1998 in order to

increase access to assistive technology for individuals with disabilities. The House bill contained no similar provision.

Within the amounts provided for vocational rehabilitation demonstration and training programs, the conference agreement includes $4,600,000 for the following activities:

$921,000—Krasnow Institute at George Mason University,

Fairfax, VA for continuation of learning disability research;

$921,000—Center for Discovery, International Family Institute, Sullivan County, NY for expansion of services to disabled persons;

$230,000—Alabama Institute for Deaf and Blind in

Talladega, AL for a demonstration grant for the National Community College for Students with Sensory Impairments;

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$500,000—Muhlenberg College in Pennsylvania for a national model program for teaching higher education students

with disabilities;

$200,000—Lewis and Clark Community College in Godfrey, Illinois to develop employment training services for persons with disabilities;

$425,000—The Imaginarium in Vestal, New York for treating at risk, low income children with developmental disorders;

$255,000—Eden Institute, Princeton, New Jersey for community-based services to children and adults with autism;

$595,000—American Foundation for the Blind’s National

Literacy Center for the Visually Impaired, Atlanta, Georgia to

provide state-of-the-art teacher training in the use of Braille,

assistive and other technologies to improve literacy instruction

of visually impaired children and adults;

$553,000—Illinois State Board of Education for an Assistive Technology Exchange Program in Chicago, Illinois, to expand services to individuals with disabilities.

SPECIAL INSTITUTIONS FOR PERSONS WITH DISABILITIES

AMERICAN PRINTING HOUSE FOR THE BLIND

The conference agreement includes $12,000,000 for American

Printing House for the Blind instead of $11,000,000 as proposed by

the House and $12,500,000 as proposed by the Senate. This

amount includes $800,000 for the American Printing House’s commitment to provide accessible textbooks to students who are blind

or visually impaired through its innovative Accessible Textbook Initiative and Collaboration Project.

NATIONAL TECHNICAL INSTITUTE FOR THE DEAF

The conference agreement includes $53,376,000 for the National Technical Institute for the Deaf instead of $54,000,000 as

proposed by the House and $54,366,000 as proposed by the Senate.

The conferees direct the Department of Education to waive any

contribution requirement for construction costs related to the dormitory renovation project.

GALLAUDET UNIVERSITY

The conference agreement includes $89,400,000 for Gallaudet

University as proposed by the House instead of $87,650,000 as proposed by the Senate.

VOCATIONAL AND ADULT EDUCATION

The conference agreement includes $1,825,600,000 for Vocational and Adult Education instead of $1,718,600,000 as proposed

by the House and $1,726,600,000 as proposed by the Senate. The

agreement provides $1,034,600,000 in fiscal year 2001 and

$791,000,000 in fiscal year 2002 funding for this account.

The conference agreement includes $1,100,000,000 for Vocational Education basic state grants as proposed by the House instead of $1,071,000,000 as proposed by the Senate.

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The conference agreement includes $5,600,000 for Tribally

Controlled Postsecondary Vocational Institutions as proposed by

the Senate instead of $4,600,000 as proposed by the House. The conference agreement includes $17,500,000 for vocational

education national programs as proposed by the House and the

Senate. The agreement also includes $9,000,000 to continue the occupational and employment information program as proposed by

the Senate. The House bill did not include funding for this activity. The conference agreement includes $5,000,000 for the techprep education demonstration authorized under section 207 of the

Perkins Act. The agreement also includes $22,000,000 for State

Grants for Incarcerated Youth as proposed by the Senate. The

House did not provide funding for these activities.

The conferees encourage the Department to give full and fair

consideration to proposals from county probation departments collaborating with community-based organizations established to address the educational and employment needs of ex-offenders. The conference agreement includes $540,000,000 for adult edu- cation state grants instead of $470,000,000 proposed by both the

House and the Senate. Within this amount, $70,000,000 is to be set

aside for integrated English literacy and civics education services

to new immigrants. Sixty-five percent of these funds will be allocated on the basis of a state’s absolute need for services and thirtyfive percent will be allocated on the basis of a state’s recent growth

in need for services. Each state is guaranteed a minimum grant of

$60,000. For the purposes of allocating funds to States for these

services, the conferees intend that the Department of Education

use the most current data available from the Immigration and Naturalization Service of the Department of Justice to determine the

number of immigrants admitted for legal permanent residence for

each fiscal year. The House bill provided $25,500,000 for civics education services to new immigrants. The Senate bill contained no

similar provision.

STUDENT FINANCIAL ASSISTANCE

The conference agreement includes $10,674,000,000 for Stu- dent Financial Assistance instead of $10,150,000,000 as proposed

by the House and $10,639,000,000 as proposed by the Senate. The

agreement sets the maximum Pell Grant at $3,750 instead of

$3,650 as proposed by the Senate and $3,500 as proposed by the

House. The agreement provides $8,756,000,000 for current law Pell

Grants.

The conference agreement includes $60,000,000 for Perkins

Loan cancellations instead of $40,000,000 as proposed by the House

and $75,000,000 as proposed by the Senate. The agreement also includes $55,000,000 for Leveraging Educational Assistance Partnerships (LEAP) as proposed by the Senate. The House bill did not

provide funding for this program.

The conference agreement also includes $1,000,000 for the loan

forgiveness for child care providers program, instead of $10,000,000

provided in the Senate bill. The House bill did not include any

funding for this program. The conferees are aware of the significant

need for and benefits of high quality child care services, and for

that reason, have included start up funding for this program. LimVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00197 Fmt 6601 Sfmt 6601 E:\HR\OC\HR1033.001 pfrm03 PsN: HR1033
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ited funding has been provided in fiscal year 2001 solely due to the

fact that few individuals will meet the eligibility requirements. The

conferees expect the Secretary to be prepared to discuss the estimated number of eligible borrowers and amounts eligible to be forgiven at the fiscal year 2002 appropriations hearings to help make

certain that sufficient funding is available for this program. In addition, the conferees direct the Department to ensure that information about the availability and benefits of this program is provided

to all potentially eligible borrowers.

The conferees encourage the Department of Education, on all

existing and future web sites and publications where higher education financial aid information is provided, to fairly and accurately

provide information with respect to the availability of loans

through both the Federal Family Education Loan (FFEL) program

and the Federal Direct Loan Program.

The conferees support continuing funding for work colleges, authorized in section 448 of the Higher Education Act of 1965. These

funds help support comprehensive work-service-learning programs

around the Nation. Of the funds provided, the conference agreement includes $4,000,000 to continue and expand the work colleges

program.

The conferees are aware of concerns in the higher education

community about the so-called ‘‘12–hour rule’’ and its unsuitability

to address the needs of institutions of higher education throughout

the nation that serve non-traditional students engaged in lifelong

learning. The conferees are concerned about the potential for enormous paperwork burdens being placed on institutions of higher

education in their attempts to comply with the 12–hour rule. The

conferees understand that the Department of Education has agreed

to meet with the higher education community about this issue. The

conferees strongly encourage the Department to include all interested parties in this discussion, including those involved in efforts

to assure the integrity of Federal student financial aid programs.

The Department is requested to report the results of the discussions and any anticipated action on the part of the Department

with respect to the 12-hour rule to the relevant Congressional committees by March 31, 2001. By October 1, 2001, the Department is

to make recommendations to the relevant congressional committees

regarding the most appropriate means to maintain the integrity of

Federal student assistance programs without creating unnecessary

paperwork for institutions of higher education.

HIGHER EDUCATION

The conference agreement includes $1,911,710,000 for Higher

Education instead of $1,688,081,000 as proposed by the House and

$1,704,520,000 as proposed by the Senate.

The conference agreement includes $73,000,000 for strengthening institutions as proposed by the House instead of $65,000,000

as proposed by the Senate. The agreement also includes

$68,500,000 for Hispanic Serving Institutions as proposed by the

House instead of $62,500,000 as proposed by the Senate.

The conference agreement includes $185,000,000 for Strengthening Historically Black Colleges and Universities as proposed by

the House instead of $169,000,000 as proposed by the Senate.

195

The conference agreement includes $45,000,000 for Historically

Black Graduate Institutions as proposed by the House instead of

$40,000,000 as proposed by the Senate. The conference agreement includes $6,000,000 for Alaska and

Native Hawaiian Institutions as proposed by the Senate instead of

$5,000,000 as proposed by the House. The conference agreement includes $15,000,000 for Strengthening Tribal Colleges as proposed by the Senate instead of

$12,000,000 as proposed by the House. Of this amount, $5,000,000

shall be used for construction and renovation projects at tribally

controlled colleges and universities. The conference agreement includes $146,687,000 for the Fund

for the Improvement of Postsecondary Education instead of

$31,200,000 as proposed by the House and $51,247,000 as proposed

by the Senate. Within the amounts provided for the Fund for the

Improvement of Postsecondary Education, the conference agreement includes $115,487,000 for the following: $277,000—Calhoun Community College, Decatur, AL for

technology enhancements; $921,000—Jefferson State Community College, Birmingham, AL for technology enhancements and supporting infrastructure;

$138,000—Wayne State College, Wayne, NE for development of a family business center; $2,721,000—University of Nebraska-Lincoln, in Lincoln,

NE for the Nebraska Center for Information Technology Education;

$691,000—Wayne State College, Wayne, NE for a computer initiative and improvement of technological infrastructure;

$461,000—Laredo Community College, Laredo, TX for instructional equipment; $147,000—Spring Hill College, Mobile, AL for Regional Library Resource Center development;

$2,482,000—Western Governor’s University, Salt Lake

City, UT for distance-learning programs;

$369,000—Macon State College, Macon, GA for technology

development;

$369,000—Middle Georgia College, Cochran, GA for distance learning programs;

$976,000—University of Virginia, Charlottesville, VA Center for Government Studies for the Youth Leadership Initiative;

$737,000—City University, Bellevue, WA for distance

learning;

$921,000—Southeast Missouri State University, Cape

Girardeau, MO for equipment and curriculum development associated with the University’s Polytechnic Institute;

$369,000—Millikin University, Decatur, IL for community

outreach and experiential education programs;

$921,000—Illinois State University at Normal, IL for the

Center for Special Education Technology;

$369,000—Mankato State University, Mankato, MN for a

wireless campus initiative;

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$369,000—Winona State University, MN for technology

enhancements;

$461,000—Montana State University, Bozeman, MT for

Educational Technology Leadership Institute;

$461,000—Western Montana College of the University of

Montana in Dillon, MT for the Rural Education Technology

Center;

$921,000—Wittenberg University, Springfield, OH for

technology improvements;

$921,000—California State University, Long Beach in

Long Beach, CA for Technology-Enhanced Learning Project;

$1,843,000—Elmira College, Elmira, NY for a Technology

Enhancement Initiative;

$921,000—University of Arkansas, Fayetteville, AR for the

Social Work Research Center;

$4,564,000—The Oklahoma Regents for Higher Education,

Oklahoma City, OK for an educational telecommunications and

information network utilizing facilities being made available in

Ponca City, OK;

$461,000—William Tyndale College, Farmington Hills,

Michigan for Interactive learning center for the 21st Century;

$980,000—John Carroll University, University Heights,

OH for operations and equipment related to the Center for

Mathematics and Science Education, Teaching, and Technology;

$1,713,000—San Bernardino Community College District

to support the expansion of distance education telecourse

broadcasting, including the purchase of equipment;

$207,000—Office of Global Business & Entrepreneurship,

Gordon Ford College of Business, Bowling Green, KY for technology;

$461,000—Northwestern State University, Natchitoches,

LA for Technological Infrastructure Improvements;

$1,068,000—University of Colorado at Boulder, Boulder,

CO for the ATLAS (Alliance for Technology, Learning and Society) Project for technology-enhanced learning;

$921,000—Fort Hays State University, Center for

Networked Learning, Hays, KS for information technology;

$1,704,000—Ocean Institute, Dana Point, CA for the

Ocean Education Center;

$553,000—National Latino Research Center, California

State University San Marcos, San Marcos, CA for training and

research regarding Hispanic populations in the U.S.;

$880,000—The Philadelphia University, Philadelphia, PA

for the Center for Education Technology;

$1,152,000—DePaul University, Chicago, IL for training

and infrastructure improvement;

$829,000—Barat College, Lake Forest, IL for the Center

for Teacher Learning;

$949,000—University of Arizona College of Medicine for

the Integrative Medicine Distance Learning Program;

$691,000—Kansas State University, Manhattan, KS for

Great Plains Network Connectivity;

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$230,000—Kansas Technology Center, Pittsburg State

University, Pittsburg, KS for manufacturing education;

$461,000—Indiana Institute of Tech, Ft. Wayne, IN for

technology enhancements;

$921,000—Central Florida Community College, Ocala, FL

for academic programming;

$1,382,000—Southeastern Louisiana University, Hammond, LA for the Alternate Teacher Certification Technology

Program;

$921,000—University of Tennessee, Chattanooga Challenger Center, Chattanooga, TN for programmatic educational

activities;

$921,000—State Board of Career and Technology Education, Oklahoma Department of Career and Technology Education, Stillwater, OK for a Rural Education Virtual Tech Job

Training System pilot program;

$322,000—Center for International Trade Development at

Oklahoma State University, Stillwater, OK for higher education international studies;

$1,843,000—Delaware County Community College, Media,

PA for technology infrastructure;

$1,106,000—Shenandoah University, Winchester, VA for a

technology education program;

$2,499,000—University of Hawaii at Manoa for a joint

project with the University of South Florida, the University of

California at Los Angeles, CA and George Washington University for the Globalization Network program;

$884,000—University of Idaho College of Engineering at

Boise to enhance computing and modeling capabilities;

$1,843,000—Heidelberg College, Tiffin, Ohio for science

education and research, including laboratory and computer

equipment;

$4,146,000—Northern Illinois Center for Accelerator and

Detector Development at Northern Illinois University, DeKalb,

IL for equipment and operations;

$921,000—University of Redlands, Redlands, CA for computer technology and networking;

$276,000—New York Medical College for curriculum development;

$1,705,000—Minnesota State Colleges and Universities,

St. Paul, MN for development of an e-monitoring environment;

$92,000—La Sierra University in Riverside, CA for educational equipment;

$980,000—University of Alabama, Tuscaloosa, AL for the

Child Development Research Center;

$700,000—Center for the Advancement of Distance Education in Rural America (CADERA) in New Mexico;

$400,000—Crime Victim Law Institute at the Northwestern School of Law, Lewis & Clark College in Portland, Oregon to continue the study and enhancement of the role of victims in the criminal justice system;

$200,000—Urban Learning Center in Covington, Kentucky

to expand education and student support programs that preVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00201 Fmt 6601 Sfmt 6601 E:\HR\OC\HR1033.001 pfrm03 PsN: HR1033
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pare economically disadvantaged individuals for post-secondary

education;

$500,000—Washington and Lee University in Lexington,

Virginia for the Shepherd Program for the Study of Poverty;

$900,000—University of Idaho in Moscow Interactive

Learning Environments initiative designed to develop and improve Internet-based delivery of education programs;

$1,000,000—Huntingdon College in Montgomery, Alabama

to assist in the development of a program to enhance effective

integration of computer technology in math and science instruction;

$900,000—Eastern New Mexico University-Roswell to expand its aviation maintenance technology program;

$1,300,000—University of Alabama in Tuscaloosa, Alabama to upgrade computer equipment and software in its

Mathematics Learning Center for enhancement of undergraduate mathematics and science instruction and education;

$1,020,000—Northwestern Michigan College in Traverse

City, Michigan to enhance programmatic operations of the

Great Lakes Water Research Center through teacher education, course development, and equipment acquisition;

$250,000—Pittsburgh Digital Greenhouse in Pennsylvania

for continuing education programs;

$300,000—Oregon Graduate Institute in Portland, Oregon

for the creation of Environmental Information Technology certificate and graduate degree programs;

$750,000—University of Louisville in Kentucky for infrastructure needs to support access to postsecondary education

for nontraditional students through its Metropolitan Scholars

Program;

$500,000—Northern Kentucky University to expand educational opportunities for nontraditional students through its

Metropolitan Education and Training Service program;

$625,000—College of Technology at Montana State University-Great Falls to establish a dental hygiene education program;

$300,000—Cleveland State University in Ohio for equipment acquisition and technology enhancements that support

innovative educational programming;

$1,800,000—Galena School District in Alaska for a collaboration with the University of Southeast Alaska for occupationbased curriculum development and implementation;

$300,000—Southern Oregon University in Ashland, Oregon to continue efforts to research and pilot a comprehensive

program for preventing alcohol and drug abuse among college

students;

$1,000,000—Castleton State College in Castleton, Vermont

to establish the Robert T. Stafford Center for the Support and

Study of the Community and to establish an endowment for

the Robert T. Stafford Center;

$1,000,000—Southeast Pennsylvania Consortium for Higher Education for faculty development, teacher training and

community outreach;

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$800,000—University of Alaska to continue the Alaska

Distance Education Consortium;

$900,000—College of William and Mary in Williamsburg,

Virginia to collaborate with Colonial Williamsburg in the development of the Institute of American History and Democracy; $350,000—Lehigh University in Pennsylvania for the Integrated Product, Project, and Process Development initiative; $400,000—Lewis and Clark College in Portland, Oregon

for the Life of the Mind education initiative designed to explore

and celebrate the 200th anniversaries of the Louisiana Purchase and Lewis and Clark expedition; $750,000—Galena School District in Alaska to develop alternative education programs; $250,000—Pittsburgh Tissue Engineering Institute in

Pennsylvania for educational programs; $200,000—Chippewa Valley Technical College for technology upgrades related to the training of health professionals; $1,275,000—Portland State University in Portland, Oregon

for the creation of a national Tribal Government Institute to

provide academic and professional development opportunities

for elected tribal leaders and governments; $500,000—College of Rural Alaska-Interior Aleutians campus to collaborate with the Galena School District for an innovative technology transfer program; $300,000—Rutgers University in Newark, New Jersey for

the Community Law program; $200,000—Minot State University for the Rural Communications Disability Program; $250,000—North Dakota State University for the TechBased Industry Traineeship program; $175,000—North Dakota State University to develop an

academic program in electronic commerce; $800,000—Suomi College in Hancock, Michigan for educational operations;

$6,000,000—University of Tennessee to establish the Howard Baker School of Government;

$1,000,000—University of Charleston in West Virginia for

collaborative efforts with the Clay Center for the Arts and

Sciences;

$800,000—Urban College of Boston in Massachusetts to

support higher education programs serving low-income and minority students;

$300,000—Western New Mexico University to improve

educational access and opportunity through educational technology;

$6,000,000—Pennsylvania State University to establish

the William F. Goodling Institute for Research in Family Literacy and to establish an endowment fund for the William F.

Goodling Institute for Research in Family Literacy;

$1,000,000—Southern Illinois University Public Policy Institute in Carbondale, IL for the endowment for the Paul

Simon Chair;

$230,000—Florida Gulf Coast University in Ft. Myers, FL

for curriculum development to support the Center for EnvironVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00203 Fmt 6601 Sfmt 6601 E:\HR\OC\HR1033.001 pfrm03 PsN: HR1033
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mental Research and Preservation and Campus Ecosystem

Model;

$900,000—Oklahoma State University for the Exercises in

Hard Choices program;

$850,000—Jackson State University in Jackson, Mississippi, to establish a Minority Center of Excellence for Math

& Science Teacher Preparation;

$300,000—Assumption College in Worcester, Mass. for

technology infrastructure and planning for expanded science

facilities;

$300,000—Boston College to develop technology infrastructure to implement a science education program;

$85,000—Loyola University, Illinois, for a program to provide summer research opportunities for minority students;

$85,000—Pace University, White Plains, New York, to support a center for advanced technology;

$90,000—Wausau Health Foundation in Wausau, Wisconsin to support the development and implementation of a

cardiac nursing certification program;

$85,000—Foothills Technical Institute, Security, Arkansas,

to expand technical training and education programs for rural

residents;

$106,000—Gateway Community College in Connecticut for

faculty technology training and technology equipment upgrades;

$170,000—Florida State University in Tallahassee, Florida, for a distance learning program;

$213,000—World Learning School of International Training, Brattleboro, Vermont, for educational technology programs;

$213,000—Mercy College, Dobbs Ferry, New York, for

multicultural, interdisciplinary curricula reform;

$1,225,000—Association of Jesuit Colleges and Universities to establish the National Center for Competency-based

Distance Learning;

$255,000—East Los Angeles College, South Gate, California, for South Gate Education Center technology upgrades;

$298,000—Canisius College in Buffalo, New York, to support education technology enhancements including the purchase of equipment;

$298,000—D’Youville College, Buffalo, New York, to support education technology enhancements including the purchase of equipment;

$298,000—Niagara University in Lewiston, New York, to

support education technology enhancements including the purchase of equipment;

$298,000—Gogebic Community College, Ironwood, Michigan to enhance teacher training in the use of technology in

classroom instruction;

$340,000—Dean College, Franklin, Massachusetts for the

Institute for Students With Physical or Learning Impairments

to improve instructional and support services for students with

disabilities;

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$361,000—Lamar University in Beaumont, Texas to support the planning and creation of the Lamar Institute of Technology Center for Criminal Justice Education and Training;

$383,000—Ivy Tech State College, Indianapolis, Indiana,

for technology enhancements at the Lawrence Township/Ft.

Harrison campus;

$425,000—Salve Regina University in Newport, Rhode Island to support program and curriculum development associated with the Pell Center for International Relations and Public Policy, including the purchase of equipment;

$425,000—University of San Francisco, San Francisco,

California for equipment and program development at the Center for Economic Development;

$425,000—Diablo Valley College, California, for a teacher

mentoring program to recruit high school and community college students into teaching;

$425,000—Kingsborough Community College, Brooklyn,

New York for technology equipment and upgrades;

$468,000—Paul Quinn College Center for Education and

Technology to provide technology based services to students

and the community;

$544,000—University of North Carolina at Charlotte for a

joint project with the Johnson C. Smith University, North

Carolina, for the Strategies for Success Program to increase

the number of minority students in graduate engineering programs;

$595,000—Columbia University, New York, for a joint

project with the Hostos Community College of the City University of New York, New York, for a distance learning initiative

to train minority students in foreign policy disciplines;

$638,000—University of Wisconsin in Milwaukee, Wisconsin for the Urban Educator Corps Partnership initiative;

$680,000—Wisconsin Indianhead Technical College, New

Richmond, Wisconsin, to provide technology training and for

technology infrastructure;

$680,000—Cambria County Area Community College,

Johnstown, Pennsylvania, for a management information system;

$723,000—Roxbury Community College, Roxbury, Massachusetts, for new technology equipment and systems;

$723,000—Lehman College at the City University of New

York in Bronx, New York, to support a professional development initiative, including the purchase of equipment to support

these activities;

$765,000—Carl Sandburg College Community Technology

Center, Galesburg, Illinois to support expanded access to information technology and related services, including the purchase

of equipment;

$808,000—Alabama A & M University Research Institute,

Huntsville, Alabama, for continuation of research activities and

operations;

$808,000—Tougaloo College, Tougaloo, Mississippi to expand science and math programs;

202

$1,275,000—University of Kansas Center for Research,

Inc. for a biodiversity information technology initiative; $1,700,000—George Meany Center for Labor Studies in

Silver Spring, Maryland, to support program and curriculum

development associated with a National Center for Training

the High Skilled Workforce, including the purchase of equipment;$2,550,000—University of Arkansas in Fayetteville to establish academic and research programs for the Diane Blair

Center for the Study of Southern Politics and Society; $100,000—Neumann College, in Aston, Pennsylvania, for

curriculum design, teacher training and development, and

technology enhancements. The conference agreement includes $67,000,000 for International

Education domestic programs as proposed by the House instead of

$62,000,000 as proposed by the Senate. The conference agreement includes $730,000,000 for TRIO in- stead of $760,000,000 as proposed by the House and $736,500,000

as proposed by the Senate. The conference agreement includes $295,000,000 for the Gaining

Early Awareness and Readiness for Undergraduate Programs

(GEAR UP) instead of $200,000,000 as proposed by the House and

$225,000,000 as proposed by the Senate.

The conference agreement includes $41,001,000 for Byrd Scholarships as proposed by the Senate instead of $39,859,000 proposed by

the House.

The conference agreement includes $10,000,000 for the Javits

Fellowship program in school year 2002–2003. The agreement also

includes $31,000,000 for Graduate Assistance in Areas of National

Need instead of $33,000,000 as proposed by the Senate. The agreement includes $30,000,000 for the Learning Anytime Anywhere

Partnerships as proposed by the Senate instead of $10,000,000 as

proposed by the House. The conference agreement includes $25,000,000 for Child Care Access Means Parents in School instead of $15,000,000 as proposed

by the House and $10,000,000 as proposed by the Senate. The conference agreement includes $1,750,000 for the Underground Railroad Educational and Cultural Program as proposed by

the Senate. The House bill did not fund this activity. The conference agreement also includes $4,000,000 for Thurgood Marshall Scholarships and $1,000,000 for Olympic Scholarships. Neither the House nor the Senate funded these activities.

The conferees recognize efforts of the University of South Carolina’s College of Education to develop and implement a teacher

training/teacher exchange program with their counterparts in

Brazil, Denmark, Hungary, and Thailand. The conferees encourage

the Secretary to support such efforts that link postsecondary institutions on an international basis to promote and improve teacher

training and development activities.

HOWARD UNIVERSITY

The conference agreement includes $232,474,000 for Howard

University instead of $226,474,000 as proposed by the House and

$224,000,000 as proposed by the Senate.

203

COLLEGE HOUSING AND ACADEMIC FACILITIES LOANS (CHAFL)

The conference agreement includes $762,000 for the College

Housing and Academic Facilities Loans administration instead of

$737,000 as proposed by both the House and the Senate.

HISTORICALLY BLACK COLLEGE AND UNIVERSITY CAPITAL FINANCING,

PROGRAM ACCOUNT

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

by the House.

EDUCATION RESEARCH, STATISTICS AND IMPROVEMENT

The conference agreement includes $732,721,000 for Education

Research, Statistics and Improvement instead of the $494,367,000

as proposed by the House and $506,519,000 as proposed by the

Senate.

The conferees provide $120,567,000 for research instead of

$103,567,000 as proposed by the House and $113,567,000 as proposed by the Senate. Within this total, $20,000,000 is included for

continuation of the interagency research initiative and $7,000,000

is included to support a research initiative on improving schooling

for language-minority students. This program would support an

interagency effort between the Department of Education and the

National Institute of Child Health and Human Development

(NICHD) to identify critical factors in the development of Englishlanguage literacy among students whose primary language is Spanish.

The conferees provide $80,000,000 for statistics instead of

$68,000,000 as proposed by the House and the Senate. Within the

increase provided, $2,000,000 is for a National Adult Literacy Survey; $6,400,000 is for the Birth Cohort of the Early Childhood Longitudinal Study to allow the Department to follow cognitive, physical, and social development of young children; $1,000,000 is for the

Adult Literacy and Life Skills study, an international comparative

study of American workforce literacy skills in the context of five

other nations; and $2,600,000 is for the Faculty Salary and Staff

Surveys which form part of the Institutional Postsecondary Educational Data System and are used by many organizations to conduct policy analysis on institutions of higher education.

The conference agreement includes $65,000,000 for regional

educational labs as proposed by both the House and the Senate.

Consistent with House report 104–537, it is the intent of the conferees that funds provided to the regional educational laboratories

shall not be conditioned on meeting performance standards that

compromise the priorities of the regional governing boards of each

of the individual laboratories. Further, the conferees intend that regional educational laboratory funds shall be obligated and distributed on the same basis as the fiscal year 2000 allocations not later

than January 31, 2001.

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Fund for the Improvement of Education

For the fund for the improvement of education (FIE), the con- ference agreement includes $349,354,000 instead of the

$145,000,000 as proposed by the House and $142,152,000 as proposed by the Senate. The conference agreement includes $50,000,000 for comprehensive school reform grants to school districts. The conference agreement includes $30,000,000 to be used for

the Elementary School Counseling Demonstration Program. The

agreement also includes $5,000,000 to provide grants to enable

schools to provide physical education and improve physical fitness

and $3,000,000 for activities to promote consumer, economic, and

personal finance education such as saving, investing and entrepreneurial education.

The conference agreement includes $5,000,000 to make awards

under section 10101 of the Elementary and Secondary Education

Act for a dropout prevention demonstration project. These awards

should be made to implement innovative model programs that undertake activities to provide support, enrichment and motivation to

students at risk of dropping out or that undertake activities to

raise standards and expectations for disadvantaged students traditionally underserved in schools in order to ensure school completion. The Secretary will make awards to States or local educational

agencies, working in collaboration with institutions of higher education or other public and private agencies, organizations or institutions. Priority should be given to applicants serving the communities with the highest dropout rates.

The conferees recognize the need to promote the study of

American history in our nation’s schools, and therefore, have also

included $50,000,000 for a new demonstration program focusing on

the instruction of American history in elementary and secondary

education. Under this program, the Secretary of Education will

award grants to local educational agencies (LEAs), and in turn, the

LEAs will make awards to schools that are teaching American history as a separate subject within school curricula (not as a part of

a social studies course). Grant awards are designed to augment the

quality of American history instruction and to provide professional

development activities and teacher education in the area of American history. The conference agreement includes $5,000,000 for high school

reform state grants. Through this State grant program, the Secretary of Education shall award three year grants, through a peer

review process, to State educational agencies. State educational

agencies will make available not less than 90 percent of the funds,

on a competitive basis, to secondary schools or consortia thereof to

support programs, activities, classes, and other services designed to

assist secondary school students in attaining State-established

challenging academic and technical skills proficiencies. Grants

awarded to secondary schools or consortia shall be used to carry

out the following activities: integration of academics with technical

skills courses; establishment of learning and technical skills centers within secondary schools; and programs that support and implement innovative strategies such as independent study, schoolbased enterprises, and project-based learning.

205

The conference agreement includes funding under this heading

for an award to maintain and enhance the National Teacher Recruitment Clearinghouse and for associated outreach and technical

assistance activities.

The conferees are aware of a research-based program that assesses a student’s cognitive strengths and perceptual abilities and

designs an individualized plan of strengthening them which has

promise to improve students’ reading levels, grades, test scores and

behavior, thereby reducing referrals to special education.

Within the amounts provided for the Fund for the Improvement of Education, the conference agreement includes $139,624,000

for the following:

$921,000—Virginia Living Museum, Newport News, VA for

an educational program;

$461,000—Giant Steps Illinois in Westmont, IL for educational services;

$1,000,000—San Diego Unified School District in CA for

‘‘The Blueprint for Student Success in a Standards-Based System’’;

$544,000—Utica City School District, Utica, New York for

an English as a Second Language Program;

$9,000—Jefferson Consolidated School District, Jefferson

New York for a summer school program;

$461,000—Texas A&M International University, Laredo,

TX for the Reading Research Center;

$184,000—Riverside Community College District, Riverside, CA for general planning for a Center for Primary Education;

$547,000—Riverside Community College District, Riverside, CA for curriculum development and related costs for the

School for the Arts;

$343,000—Louisiana Tech University, Ruston, LA for

‘‘Project Life’’;

$686,000—WestEd Eisenhower Regional Consortium for

Science and Mathematics, San Francisco, CA for 24 Challenge

and Jumping Levels Math;

$507,000—George Mason University, Fairfax VA for Center for Families and Schools programming;

$275,000—Fairfax County Public Schools, Fairfax, VA for

the Teacher Leadership 2000 project in Annandale Terrace Elementary School, Belvedere Elementary School, Glen Forest

Elementary School, Graham Road Elementary School, and

Parklawn Elementary School;

$841,000—Institute for Student Achievement, New York,

NY for establishment of programs at Holmes Middle School,

Annandale High School and Falls Church High School in Virginia;

$929,000—Yosemite National Institute, Sausalito, CA for

science-based environmental education;

$1,283,000—Indian River Community College, Fort Pierce,

FL for the Living Science Interactive Learning Model;

$23,000—United Activities Unlimited Inc., Staten Island,

NY for tutoring and homework assistance;

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$28,000—Foundation for the Advancement of Autistic Persons in Staten Island, NY for Eden II teacher retention program; $69,000—Community School District 31, Staten Island, NY

for textbook and library book purchases; $276,000—New Jersey Historical Society for ‘‘Educating

New Jersey’s Children in the Past’’; $691,000—Mote Marine Laboratory, Sarasota, FL for technology-based education programs; $921,000—Space Education Initiatives, Inc., Green Bay,

WI for professional development and technology programming; $3,430,000—The Board of Education of the City of Chicago/Chicago Public Schools, National Teaching Training Academy, Chicago IL for the Consortium for the Advancement of

Teaching; $230,000—Fox Valley Illinois YMCA for the Teen Agenda

Program; $115,000—L.E.A.D.E.R.S. Program, Rochester Hills, MI for

teen leadership, character development, and role modeling program; $806,000—Clark State Community College, Springfield OH

and Cuyahoga Community College, Cleveland, OH for the

Early Childhood Literacy Project; $369,000—Kids Voting USA, Tempe, AZ for educational

programming; $921,000—Rockford Public Schools—District 205, Rockford, IL for strengthening of a magnet school program; $461,000—Carthage Central School District, Carthage, NY

for an academic intervention plan; $1,799,000—Reading Together USA Program at the University of North Carolina at Greensboro for tutoring program

expansion; $691,000—National Center for Family Literacy, Louisville,

KY for family literacy practitioner training;

$461,000—Center Unified School District, Antelope, CA for

training for literacy professionals;

$497,000—San Juan Unified School District, Carmichael,

CA for a comprehensive literacy program;

$921,000—San Joaquin Council of Governments, Stockton,

CA for the San Joaquin County Reads Program;

$880,000—George C. Marshall Foundation, Lexington, VA

for character development through community service;

$415,000—National Crime Prevention Council, Washington DC for continuation of the National Youth Safety Corps;

$921,000—Adler Planetarium and Astronomy Museum,

Chicago, IL for Cyber Space Technology Learning Center;

$184,000—Northwestern University, Evanston, IL Institute for Policy Research for the School Youth Development Program;

$921,000—North Central Regional Educational Laboratory

for the North Central Alliance, Oak Brook, IL for Improving

Professional Development;

$276,000—Midwest Young Artists, Highwood, IL for music

education programming;

207

$230,000—Shimer College, Waukegan, IL for the Graduate

Program in the Foundations of Science; $92,000—Aptakisic Tripp Community Consolidated School

District #102 in IL for curriculum development; $1,843,000—Lake County Forest Preserve District in

Libertyville, IL for educational center programming; $345,000—Greater Columbus Chamber of Commerce, Columbus OH for a Career Academy Program; $111,000—Mariposa County Unified School District,

Mariposa California for a teacher initiative; $350,000—Center for Advanced Research and Technology,

Clovis CA for educational programming; $921,000—Media Arts Center, Paintsville, KY for equipment and educational program support; $921,000—University of West Florida, Pensacola, FL for

enhancing teacher performance in schools; $276,000—Southern Illinois University, Edwardsville, IL

for an urban quality teacher initiative; $921,000—Wichita Public Schools, Wichita, KS for special

education teaching reforms; $46,000—Beaver Local School District, Lisbon, OH for educational programming; $46,000—Belmont-Harrison Vocational School District, St.

Clairsville, OH for educational programming; $46,000—Brooke High School, Wellsburg, WV for educational programming; $46,000—Bridgeport Exempted Village School District,

Bridgeport, OH for educational programming; $46,000—Buckeye Local School District, Rayland, OH for

educational programming; $46,000—Columbiana County Career Center, Lisbon, OH

for educational programming; $46,000—East Liverpool School District, East Liverpool,

OH for educational programming;

$46,000—Edison Local School District, Hammondsville,

OH for educational programming;

$46,000—Hancock County Schools, New Cumberland, WV

for educational programming;

$46,000—John D. Rockefeller Vocational Technical Center,

New Cumberland, WV for educational programming;

$46,000—Indian Creek School District, Wintersville, OH

for educational programming;

$46,000—Jefferson County Joint Vocational School,

Bloomingdale, OH for educational programming;

$46,000—Martins Ferry School District, Martins Ferry,

OH for educational programming;

$46,000—Midland School District, Midland, PA for educational programming;

$46,000—Southern Local School District, Salineville, OH

for educational programming;

$46,000—South Side School District, Hookstown, PA for

educational programming;

$46,000—Steubenville City Schools, Steubenville, OH for

educational programming;

208

$46,000—Toronto School District, Toronto, OH for educational programming; $46,000—Wellsville Local School District, Wellsville, OH

for educational programming; $46,000—Wheeling Park High School, Wheeling, WV for

educational programming; $921,000—Girard Community Committee Inc., for development of the Girard Multigenerational Center in Girard, Ohio; $369,000—St. Tammany Parish, Louisiana School Board,

Covington, LA for teacher technology training; $92,000—Orleans Parish, LA District Attorney’s Office,

New Orleans, LA for school based drug awareness education

and prevention program; $200,000—The ReadNet Foundation, New York, NY for innovative learning solutions for the mentally handicapped; $480,000—Technological Research and Development Authority, Titusville, FL for the Mathematics, Science & Technology Teacher Education Program; $46,000—Kentucky Sheriff’s Boys and Girls Club in Gilbertsville KY for educational and outreach efforts for children;

$18,000—Oscar Cross Boys and Girls Club in Paducah KY

for technology improvements; $1,382,000—Paducah Community College for the Challenger Learning Center, Paducah, KY for hands-on science,

mathematics and technology education; $461,000—Mississippi Writing/Thinking Institute, Mississippi State University, Starkville, MS for improving teaching and writing in K–12 schools throughout the state; $1,176,000—University of New Mexico, Albuquerque, NM

for the Math and Science Teacher Academy; $871,000—Florida Department of Education for School

Net;

$553,000—Galena School District, Galena Alaska for a

comprehensive vocational program;

$230,000—California Drug Consultants, Moreno Valley CA

for educational learning aids and equipment for disabled and

ill children in the Riverside County region;

$460,000—Daemen College in Amherst, NY for staffing

costs, supplies, equipment and computer needs for the Center

for Achievement in Science;

$900,000—New Mexico Department of Education to continue to fund student performance plans at 12 schools and for

a model school drop-out prevention program;

$500,000—Western Village Academy in Oklahoma City,

Oklahoma in partnership with Integris Health, for literacy programs and other educational enrichment activities;

$800,000—National Science Center Foundation in Augusta, Georgia to continue to develop computer based software

Exit Exam Review Materials for ESOL students;

$9,000,000—Project GRAD-USA Inc. in Houston, Texas to

support expansion of the successful school reform program,

Project GRAD;

$800,000—State of Alaska to continue reading literacy programs for high school students;

209

$300,000—Providence Public School District in Providence,

Rhode Island for comprehensive literacy training to ensure

that all students are reading at grade level;

$2,000,000—Alaska Initiative for Community Engagement

to improve academic achievement of students and involve them

in their own communities;

$500,000—Semos Unlimited, Inc., in New Mexico to complete a comprehensive initiative for providing bilingual educational and literacy programs;

$850,000—Maine Center for Educational Services to implement the Schools & Technology for Assessment & Reflection

program, a student performance data system for planning and

instructional purposes;

$500,000—American Village in Montevallo, Alabama for

an innovative civics education initiative that provides students

with a better understanding of the Constitution and foundation

of American self-government;

$500,000—Vermont Educational Leadership Alliance in

Montpelier, Vermont to address the shortage of school leaders;

$600,000—University of Northern Iowa to continue developing a model demonstration program for early childhood education of all students;

$700,000—Utah State Office of Education to assist small

and geographically isolated schools through the Necessarily

Existent Small Schools Program;

$2,500,000—State of Alaska to develop innovative teacher

recruitment and retention programs;

$400,000—Albuquerque Public School System in New Mexico for its Magnet High School for Math, Science and Technology;

$400,000—University of Oklahoma’s Institute for Practical

Robotics in Oklahoma City, Oklahoma to provide hands on experiences in robotics by developing curricula and teacher training programs to integrate robotics and computer engineering

with traditional math and science education;

$300,000—Salt Lake Organizing Committee or to a governmental agency or not-for profit organization designated by

the Salt Lake City Organizing Committee for a national arts

and education model initiative for the Winter Olympic and

Paralympic Games of 2002;

$100,000—Museums & Universities Supporting Educational Enrichment in Philadelphia, Pennsylvania for teacher

training and technology- and museum-based curriculum development;

$105,000—Wilderness Technology Alliance in Bellevue,

Washington for educational reform activities designed as part

of its statewide demonstration program;

$2,500,000—Sheldon-Jackson College Center for Life Long

Learning for teacher training and to address the shortage of

teachers in remote Alaskan villages;

$1,000,000—Delta State University to improve access to

and the quality of education in the Mississippi Delta area of

the State of Mississippi;

210

$250,000—Washington and Jefferson College Center for

Excellence in Teaching and Learning in Pennsylvania for a

comprehensive education initiative;

$75,000—Northwest Missouri Regional Council of Government’s Access 2000 program for educational support services

including career planning, leadership development and personal skill evaluation and improvement;

$1,800,000—University of Missouri-St. Louis for the

Teacher Workforce Replenishment Program;

$800,000—University of Rhode Island for the 2001 World

Scholar Athlete Games;

$50,000—KidsPeace in Orefield, Pennsylvania for equipment acquisition and educational services to support the integration of health and educational programs developed for at

risk youth;

$250,000—Iowa State University Center for Excellence in

Science and Mathematics Education to collaborate with local

school districts and other partners to increase the quality of

mathematics and science technology education for K–12 grade

students;

$400,000—Council of Chief State School Officers for professional development and recognition activities related to the

Christa McAuliffe Foundation grant program;

$375,000—Madison Station Elementary School in Madison,

Mississippi to begin a replicable, school-wide, arts based curriculum;

$250,000—Southeast Kansas Education Service Center in

Girard, KS to expand and replicate state-wide a school-based

mentoring effort that connects young people from grades K–12

with adult volunteers;

$750,000—Keystone Central School District in Pennsylvania, in collaboration with Lock Haven University, to develop

a model alternative school;

$1,800,000—Vermont Department of Education to carry

out section 1002(f) of the Elementary and Secondary Education

Act of 1965;

$100,000—Freedom Foundation at Valley Forge to develop

programs integrating citizenship education, leadership development and literacy programs;

$850,000—California School of Professional Psychology, in

cooperation with school districts in the San Diego, Los Angeles,

San Francisco and Fresno metropolitan areas for model teacher training programs;

$200,000—Regional Performing Arts Center in Philadelphia, Pennsylvania for equipment acquisition in support of distance learning programs arranged with area schools;

$250,000—CAPE/PETE Net in Bethlehem, Pennsylvania

for distance learning technologies and educator training to improve educational outcomes;

$400,000—National Aviation Hall of Fame in Dayton, Ohio

for curriculum development, technology upgrades and programmatic improvements to educational programs offered to

students;

211

$290,000—Sunnyside School District in Washington for a

reading literacy program;

$250,000—California Institute of the Arts in Valencia,

California for an urban distance learning program;

$250,000—Philadelphia Pops educational outreach program, Jazz in the Schools;

$500,000—University of Northern Iowa Center for Mathematics and Science Education to improve the teaching of mathematics and science;

$850,000—Southwest Texas State University Center for

School Improvement to develop innovative programs to address

specific K–12 challenges facing teachers and students;

$850,000—University of Montana in Missoula, Montana to

facilitate a community-based statewide curriculum aimed at

preventing violence in schools;

$20,000—Education, Social and Public Services Association

in Seattle, Washington to develop targeted communications related to Washington learning standards;

$850,000—ARC of East Central Iowa for a comprehensive

center in Cedar Rapids designed to meet the learning, medical

and day care needs of children and adolescents with disabilities;

$250,000—American Visionary Art Museum in Baltimore,

Maryland for educational and outreach programs targeted to

underserved communities;

$250,000—Philadelphia Zoo in Philadelphia, Pennsylvania

to create, develop and implement a high school science learning program;

$2,500,000—Big Brothers/Big Sisters of America to

strengthen and expand its school based mentoring program;

$200,000—National Foundation for Teaching Entrepreneurship for expansion of basic academic skill development and

entrepreneurship training programs for students in low income

areas;

$250,000—Opera Company of Philadelphia for an integrated arts education program;

$9,000,000—Iowa Department of Education to continue a

demonstration of public school facilities;

$750,000—Des Moines Independent School District in Iowa

to support the Smoother Sailing program;

$1,000,000—Iowa Student Aid Commission for teacher

training, recruitment and support;

$500,000—Iowa Child Institute located in Des Moines, IA

for planning and development of an innovative teacher education and training center;

$100,000—Cobbs Creek Community Environmental Education Center in Philadelphia, Pennsylvania for teacher training, research and equipment acquisition in support of environmental education programs;

$400,000—Southeastern Louisiana University to utilize

distance learning for the improvement of teacher training;

$150,000—Rock School of Pennsylvania Ballet for innovative arts education through after school and summer programs;

212

$250,000—Flathead Valley Community College Montana

TREK Center to provide rural educators with professional development opportunities through distance learning technologies;

$500,000—Hofstra University for a demonstration school

that integrates mathematics, science, technology and literacy

studies with the arts and cultural studies;

$250,000—CityVest, a non-profit development corporation

in Pennsylvania, to collaborate with area school districts in

providing alternative education programs;

$300,000—YMCA of America to expand drop out prevention, mentoring and teen pregnancy prevention programs serving at-risk teens in Dallas, San Antonio and Houston;

$250,000—American Film Institute for activities supporting a media literacy pilot project undertaken in coordination with the Los Angeles Unified School District;

$2,000,000—Reach Out and Read program to expand literacy and health awareness for at-risk families;

$850,000—South Carolina Association of School Administrators to facilitate and distribute the methodology and pedagogy utilized by Blue Ribbon Schools;

$50,000—Stillman College, Zelpha Wells Cultural Education Center to continue to provide music education and

music instruction to minority and disadvantaged youth;

$650,000—Georgia Project, Inc. in Dalton, Georgia to assimilate Hispanic immigrant children into mainstream curriculum;

$100,000—West Virginia University in Morgantown for

school safety research;

$1,000,000—Concord College in West Virginia for technical

skills training of new teachers;

$900,000—New York Historical Society to collaborate with

area high schools in developing a technology-based program designed to enhance teaching and learning;

$400,000—Child and Family Development Education Center in Albuquerque, New Mexico to better prepare students for

school success;

$25,000—Freedom Theatre in Philadelphia, Pennsylvania

for performing arts training and mentoring programs for area

youth;

$401,000—The National Mentoring Partnership in Washington DC for establishing the National E-Mentoring Clearinghouse;

$900,000—Florida Institute of Education in Tallahassee,

Florida for community-based early learning and professional

development hubs;

$4,000,000—Carnegie Hall in New York, New York to integrate distance learning and educational technology with music

education programs through the Isaac Stern Legacy project;

$200,000—Hispanic Education and Media Group for a

Latino-Chicano high school dropout prevention program in San

Jose, CA;

213

$276,000—The Academy of Natural Sciences in Philadelphia, PA for continuation of the Science Enrichment Expansion

Curriculum program;

$2,550,000—University of Notre Dame, Indiana, for the Institute for Educational Initiatives research center for the comparative analysis of best practices in public and private elementary and secondary schools;

$1,700,000—Challenger Learning Center of Northwest Indiana, Inc., Hammond, Indiana, to expand science education

and teacher training programs;

$1,275,000—For demonstration and evaluation of ‘‘one-toone’’ computing in high-need school districts in Bridgeport and

New Haven, Connecticut; San Pablo, Fairfield, Bay Point, and

East Menlo Park, California; and Searchlight and McDermitt,

Nevada;

$1,233,000—University of Maine, Orono, Maine, for the development of curriculum for math and science teacher education;

$863,000—An Achievable Dream, Newport News, Virginia

to improve academic performance of at-risk youth;

$1,250,000—Helen Keller Worldwide to expand the

ChildSight Vision Screening Program and provide eyeglasses to

additional children whose educational performance may be hindered because of poor vision;

$1,020,000—Sacramento City Unified School District, California to establish the California Home Visiting Center to train

teachers and parents in order to improve student learning;

$935,000—Thornton Township High School District 205 to

support the Thornton Township Teaching and Learning Partnership teacher training program;

$850,000—Early Reading Success Institute in Connecticut

to broaden the training of professionals in best practices in the

delivery of reading instruction;

$850,000—Olympic Park Institute in Olympic National

Park, Washington, to expand science education programs.;

$850,000—The GRAMMY Foundation, Santa Monica, California, for music education programs;

$850,000—The Learning Collaborative Inc., Milford, Connecticut, for the ‘‘Pebbles Project’’ to demonstrate innovative

technology to deliver educational services to children medically

unable to attend school;

$744,000—Yale University Child Study Center, New

Haven, Connecticut, for a child-centered education pilot program;

$723,000—Babyland Family Services, Newark, New Jersey

for technology training and extended learning opportunities for

students, parents and teachers;

$723,000—Chicago Public School System, Illinois, for

teacher professional development and university partnerships

to support implementation of new magnet school programs;

$723,000—DeKalb County School System in Georgia for a

comprehensive school violence prevention initiative;

214

$723,000—East Hartford Public Schools, Connecticut, to

support program and professional development associated with

the international baccalaureate program, including equipment;

$723,000—Sam Houston University, Huntsville, Texas to

establish a technical assistance center for after-school programs;

$723,000—Texas A & M University, Corpus Christi, Texas

for services to at-risk bilingual families and for a middle school

math and science center at the Early Childhood Development

Center;

$723,000—University of Illinois, Chicago, Illinois for the

Project Impact Hispanic education initiative;

$638,000—Miami-Dade County Public Schools, Miami,

Florida to establish career academies;

$638,000—University of Missouri, St. Louis, School of Education, for the Urban Educator Corps Partnership initiative;

$595,000—Rutgers University Law School to support a

scholarship fund, public interest activities, and its work with

the LEAP Academy Charter School, including the purchase of

books and equipment to support these activities;

$700,000—Wisconsin Educational Partnership Initiative in

Chippewa Falls, Wisconsin for a professional development initiative;

$690,000—Washburn Public Schools, Washburn, Wisconsin, for a pilot project designed to provide 6th grade students and school faculty with access to technology, including

laptop computers, software, and home internet access, and to

provide expert curriculum development assistance to school

faculty members;

$510,000—Dillard University, New Orleans, Louisiana, to

expand the William L. Gilbert Academy pre-college program

for high achieving low-income high school students;

$510,000—Educational Performances Foundation CPI,

Boston, Massachusetts, for the continued development of the

music educational program called ‘‘From the Top’’;

$510,000—West Windsor-Plainsboro Regional School District in Mercer County, New Jersey, for the ‘‘E=mc2’’ teacher

training project;

$489,000—University of Illinois at Chicago, Illinois, for a

joint project with the University of New Orleans, Louisiana, for

the Great Cities’ University Coalition Urban Educators Corps

teacher training partnership;

$442,000—Maryland State Department of Education to

support the Maryland Educational Opportunities Summer Program;

$425,000—Alameda County Social Services Agency, Oakland, California, to support an education and training program

for high school students;

$425,000—Clark County School District, Las Vegas, Nevada for a comprehensive bilingual education program;

$425,000—Cleveland Botanical Garden, Cleveland, Ohio,

to expand educational curriculum, outreach and teacher training programs;

215

$425,000—Detroit Area Pre-College Engineering Program,

Inc., Detroit, Michigan, for engineering, science and math instructional, Saturday and summer programs, teacher training,

and parental engagement activities;

$425,000—The Milton Eisenhower Foundation, Washington, DC for a full-service community school demonstration

project in up to four locations;

$425,000—Virginia Marine Science Museum Science Camp

in Virginia Beach, Virginia to expand educational programs

and outreach to schools;

$361,000—Oakland Unified School District, California, for

a teacher professional development initiative to increase student achievement in literacy, math and science;

$340,000—Council of Chief State School Officers to support the Arts Education Partnership to improve the awareness

and quality of arts in education;

$340,000—Indiana University, Bloomington, Indiana, for

the Project TEAM minority recruitment program;

$340,000—Smithsonian Institution for a jazz music education program in Washington, DC;

$340,000—Wildlife Conservation Society, Bronx New York,

to develop a distance learning education project for after school

programs;

$298,000—Chicago Public School System, Illinois, to provide vision screening, eye exams, and glasses for low-income

students;

$276,000—Chicago Public School System, Illinois, to expand the Chicago Math, Science and Technology Academies;

$266,000—City of Houston Public Library, Houston, Texas

for the ASPIRE after school program;

$213,000—Future Leaders of America, Inc., Oxnard, California, to provide leadership training and educational experiences to talented youth;

$213,000—Institute for Student Achievement, Manhasset,

New York to improve student learning outcomes without social

promotion;

$191,000—Bremen Community High School District 228,

in Midlothian, Illinois, for a summer transition program for incoming freshmen students;

$191,000—Center for Community Transformation in Chicago, Illinois to support student fellowships and ongoing secular educational activities in community leadership and transformation, including curriculum development;

$170,000—‘‘ScienceClass in a Box’’ educational system, Hoboken, New Jersey, to enhance science and math education in

disadvantaged school districts;

$175,000—Merrill Area Public Schools in Merrill, Wisconsin, to support activities designed to improve educational

outcomes for at-risk students;

$149,000—Great Lakes Science Center, Cleveland, Ohio, to

establish interactive biomedical exhibitions and educational

programs to increase minority awareness of health careers;

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$128,000—Centro Latino de Educacion Popular in Los Angeles, California, program to provide literacy training for Hispanic children and adults;

$128,000—City of Eugene, Oregon, for the development of

educational materials for a Wetland Environmental Education

Center;

$94,000—Dallas Urban League, Inc., Dallas, Texas, to expand technology and literacy training for low-income youth;

$85,000—Los Angeles Free Net, Encino, California, to provide free internet access to schools and libraries;

$85,000—Pasadena Independent School District, Pasadena, Texas, to support an early learning program focused on

reading, including to purchase equipment and supplies;

$50,000—Stevens Point Area School District, Wisconsin for

an initiative to improve achievement among high school students;

$43,000—Santa Barbara County Education Office, California for school violence prevention resource kits;

$43,000—St. Vincent’s Family Service Center, Kansas

City, Missouri, to implement a violence prevention curriculum

initiative;

$50,000—Merrill Area Public Schools in Merrill, Wisconsin, for an initiative to improve achievement among high

school students;

$50,000—Superior School District, Superior, Wisconsin for

an initiative to improve achievement among high school students;

$38,000—T.R. Hoover Community Development Corporation in Dallas, Texas, to provide technology training to children

and their families in South Dallas;

$400,000—Chester Upland School District, Chester, PA,

for recruitment, preparation and retention of teachers and

teacher candidates;

$100,000—Family Communications, Inc., in Pittsburgh,

PA, for the non-profit’s Safe Havens Training Project which is

designed to train school personnel in preventing and responding to acts of violence;

$250,000—Northwest Regional Educational Laboratory in

Portland, OR for a reading tutor training program; and

$230,000—University of Pennsylvania Health System in

Philadelphia, PA for development of a model high school curriculum on genetics and ethics.

For International Education, the conference agreement includes $10,000,000 as proposed by the Senate, instead of

$7,000,000 as proposed by the House. The conferees support

strengthening and expanding international education exchange

programs to more students and teachers, expanding the early elementary school program begun last year in Bosnia, and pairing

more American states with countries in the former Soviet Union

and Central and Eastern Europe. Within the total, $1,200,000 is

included for the civic education program in Northern Ireland and

the Republic of Ireland and efforts in emerging democracies in developing countries.

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The conferees recognize the efforts of Strategies to Accelerate

Reading Success (STARS) in Las Vegas, NV where students in low

performing schools have shown marked improvements in their

reading and listening comprehension skills. The conferees are also

aware of the Great Films Project Co., Inc. of New York and their

ability to produce a documentary that will provide an objective assessment of the impact of Federal education programs on the education of our Nation’s youth.

The conferees encourage the Secretary to consider funding a

study by the National Research Council of the National Academy

of Sciences which provides a balanced evaluation of the consequences of high stakes testing, using data from a representative

sample of states and local educational agencies. The evaluation

may examine the consequences for students in general, minority

students and students with limited English proficiency related to

academic achievement, dropout and retention rates, quality of instruction, and the extent to which parents are informed about assessment results and consequences.

DEPARTMENTAL MANAGEMENT

The conference agreement includes $525,684,000 for Departmental Management instead of $488,134,000 as proposed by the

House and $504,551,000 as proposed by the Senate. Within this

amount, the agreement provides $76,000,000 for the Office of Civil

Rights instead of $71,200,000 as proposed by the House and

$73,224,000 as proposed by the Senate. The agreement also includes $36,500,000 for the Office of Inspector General instead of

$34,000,000 as proposed by the House and $35,456,000 as proposed

by the Senate. The agreement includes $510,000 to continue the Inspector General audit of the Department’s Student Financial Assistance financial statements.

The conferees are supportive of the HEATH Clearinghouse

which provides technical assistance and support services to disabled students and institutions of higher education. In the last five

years, the number of requests for information has increased from

30,000 per year to more than 75,000 per year. The conferees encourage the Secretary to continue to support the clearinghouse.

GENERAL PROVISIONS

TRANSFER AUTHORITY

The conference agreement includes language to provide general

transfer authority for the Departments and agencies in this bill except for the Department of Education (ED). This authority was first

provided in fiscal year 1996 with the understanding that the flexibility it provides can only be carried out when proper financial

management controls and systems are in place. ED did not receive

an unqualified opinion on its financial statements for either fiscal

year 1998 or 1999. The conferees recognize that ED is working to

rectify problems that have been identified, but for fiscal year 2001

the conferees require a letter of reprogramming to the House and

Senate Appropriation Committees and a written response from the

Committees before any transfer of funds can be made.

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The conferees reiterate that it is not the purpose of the transfer authority to provide funding for new policy proposals that can,

and should, be included in subsequent budget proposals. Absent

the need to respond to emergencies or unforeseen circumstances,

this authority cannot be used simply to increase funding for programs, projects or activities because of disagreements over the

funding level or the difficulty or inconvenience with operating levels set by the Congress.

TITLE I—TARGETING

The conference agreement includes language proposed by the

Senate directing the Comptroller General to evaluate targeting

within the title I program. The House bill contained no similar provisions.

NATIONAL ASSESSMENT GOVERNING BOARD DATE CHANGE

The conference agreement includes a provision that makes the

terms of service for National Assessment Governing Board members four years.

RECALCULATION OF COHORT DEFAULT RATE

The conference agreement includes language changing the

process for appealing cohort default rate calculations so that a

school that misses the appeal deadline may retain eligibility if a

clear mistake was made in the data used to calculate the rate.

COMPENSATION PARITY FOR AUDITORS AND EXAMINERS

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

TRIBAL COLLEGES

The conference agreement includes an amendment to the Carl

D. Perkins Vocational and Technical Education Act of 1998 relating

to tribally controlled postsecondary vocational and technical institutions.

SECURITY INTERESTS IN STUDENT LOANS

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

in student loans.

HISTORICALLY BLACK COLLEGES AND UNIVERSITIES

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

NATIONAL CONSTITUTION CENTER

The conference agreement includes a provision which provides

$10,000,000 to the Secretary of Education to be transferred to the

Secretary of the Interior for an award to the National Constitution

Center to continue activities authorized by P.L. 100–433.

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CHARACTER EDUCATION

The conference agreement includes a modification to the Safe

and Drug-Free Schools Act for the development and implementation of character education programs.

WAIVER REVIEW

The conference agreement includes a provision that directs the

Secretary to review the nursing program operated by Graceland

University in Iowa and specifies that the Secretary may exercise

waiver authority relating to this program.

LEVERAGING EDUCATIONAL ASSISTANCE PARTNERSHIPS

The conference agreement includes an amendment to the Higher Education Act of 1965 clarifying that funds provided under the

Special Leveraging Educational Assistance Partnership Program

may not be used for administrative purposes and that matching

funds must come from new sources in order to leverage more state

funding.

STUDENT SUPPORT SERVICES

The conference agreement includes an amendment to Part A of

title IV of the Higher Education Act of 1965 which allows grantees

receiving funding under the Student Support Services program

within TRIO to use part of these funds for direct grant aid to needy

students. A grant provided under this provision may not exceed the

maximum appropriated Pell Grant, or be less than the minimum

appropriated Pell Grant, for the current academic year. Grantees

using funds for this purpose are required to match at least 33 percent of the funds used for grant aid in cash from non-federal

sources and may not use more than 20 percent of their grant

amount for direct grant aid purposes.

STUDENT LOANS INTEREST RATE

The conference agreement includes a provision that replaces

the interest rate formula for certain Parent Loans to Students and

Supplemental Loans for Students which used the rates established

by the auction of 52–week Treasury bills for setting new interest

rates each July 1st. Interest rates for these loans will now be based

on a new formula which uses the weekly average of the one year

constant maturity Treasury yield, as published by the Board of

Governors of the Federal Reserve System, for the last calendar

week ending on or before June 26th preceding the July 1st effective

date for interest rate changes.

OLYMPIC SCHOLARSHIPS

The conference agreement includes an amendment to the Higher Education Act of 1965 designating scholarships made under the

Olympic Scholarships program as ‘‘B.J. Stupak Olympic Scholarships.’’

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PROPERTY TRANSFER

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

IMPACT AID

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

TITLE IV—RELATED AGENCIES

ARMED FORCES RETIREMENT HOME

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

CORPERATION FOR NATIONAL AND COMMUNITY SERVICE

DOMESTIC VOLUNTEER SERVICE PROGRAMS, OPERATING EXPENSES

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

Volunteers in Service to America (VISTA)

The conference agreement includes $83,074,000 for VISTA as

proposed by the Senate instead of $80,574,000 as proposed by the

House.

National Senior Volunteer Corps

The conference agreement includes $98,868,000 for the Foster Grandparent Program (FGP) instead of $95,988,000 as proposed by

the House and $97,500,000 as proposed by the Senate. The agreement includes $40,395,000 for the Senior Companion Program

(SCP) instead of $39,219,000 as proposed by the House and

$40,219,000 as proposed by the Senate. The agreement also includes $48,884,000 for the Retired Senior Volunteer Program

(RSVP) instead $46,117,000 as proposed by the House and

$48,117,000 as proposed by the Senate.

One-third of the increases provided for the FGP, SCP, and

RSVP programs shall be used to fund Programs of National Significance expansion grants to allow existing FGP, RSVP and SCP programs to expand the number of volunteers serving in areas of critical need as identified by Congress in the Domestic Volunteer Service Act.

Sufficient funding has been included to provide a 2 percent increase for administrative costs realized by all current grantees in

the FGP and SCP programs, and a 4 percent increase for administrative costs realized by all current grantees in the RSVP program.

Funds remaining above these amounts should be used to begin new

FGP, RSVP and SCP programs in geographic areas currently

unserved. The conferees expect these projects to be awarded via a

nationwide competition among potential community-based sponsors.

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The Corporation for National and Community Service shall

comply with the directive that use of funding increases in the Foster Grandparent Program, Retired and Senior Volunteer Program

and VISTA not be restricted to America Reads activities. The conferees further direct that the Corporation shall not stipulate a minimum or maximum amount for PNS grant augmentations.

The conference agreement includes $400,000 for senior demonstration activities as proposed by the House instead of

$1,494,000 as proposed by the Senate. These funds are to be used

to carry out evaluations and to provide recruitment, training, and

technical assistance to local projects as described in the budget request. No new demonstration projects may be begun with these

funds. None of the increases provided for FGP, SCP, or RSVP in

fiscal year 2001 may be used for demonstration activities. The conferees further expect that all future demonstration activities will be

funded through allocations made through Part E of the Domestic

Volunteer Service Act.

Funds appropriated for fiscal year 2001 may not be used to implement or support service collaboration agreements or any other

changes in the administration and/or governance of national service programs prior to passage of a bill by the authorizing committees of jurisdiction specifying such changes.

Program Administration

The conference agreement includes $32,229,000 for program

administration of DVSA programs at the Corporation as proposed

by the House instead of $32,100,000 as proposed by the Senate.

Funding should be used for the new core financial management

system and to make other technology enhancements that will improve customer service and field communications.

CORPORATION FOR PUBLIC BROADCASTING

The conference agreement includes language proposed by the

Senate providing an additional $20,000,000 for digitalization, if

specifically authorized by subsequent legislation. The House bill

contained no similar provision.

FEDERAL MEDIATION AND CONCILIATION SERVICE

The conference agreement includes $38,200,000 for the Federal

Mediation and Conciliation Service as proposed by the Senate instead of $37,500,000 as proposed by the House.

FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION

The conference agreement includes $6,320,000 for the Federal

Mine Safety and Health Review Commission as proposed by the

Senate instead of $6,200,000 as proposed by the House.

INSTITUTE OF MUSEUM AND LIBRARY SERVICES

The conference agreement includes $207,219,000 for the Institute of Museum and Library Services instead of $170,000,000 as

proposed by the House and $168,000,000 as proposed by the Senate. Within the amounts provided, the conference agreement includes $39,219,000 for the following:

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$921,000—The Mariners’ Museum, Newport News, VA for

library archival and educational programming;

$461,000—DuPage County Children’s Museum in

Naperville, IL for educational programming;

$369,000—National Baseball Hall of Fame Library, Cooperstown New York for library improvements;

$92,000—City of Corona, Riverside, CA for library technology improvements;

$6,000—City of Murrieta Public Library, Murrieta, CA for

technology improvements

$1,382,000—Sierra Madre Public Library, Sierra Madre,

CA for technology improvements;

$23,000—Brooklyn Public Library, Brooklyn, NY for library materials;

$46,000—NY Public Library Staten Island branch for book

and archive enhancement;

$266,000—Edward H. Nabb Research Center for Delmarva

History and Culture at Salisbury State University, Salisbury,

MD for a history laboratory project;

$461,000—Texas Tech University, Lubbock TX for the Virtual Vietnam Archive Project;

$230,000—City of Ontario Public Library, Ontario, CA for

technology improvements;

$461,000—Southern Oregon University, Ashland, OR for

technology enhancements to the library’s Government Documents Collection;

$1,106,000—Christopher Newport University, Newport

News, VA for upgrade of Information Technology Center;

$2,600,000—Southeast Missouri State University River

Campus and Museum to restore the historic former St. Vincent

Seminary for museum programs;

$900,000—Heritage Harbor Museum in Providence, Rhode

Island for cataloging of materials and operations;

$700,000—Institute for the Historic Study of Jazz at the

University of Idaho for the cataloguing, digitalization, development of an on-line database, and preservation of archival materials which it owns;

$1,800,000—Franklin Pierce College Life Center to serve

as a library for the rural southwest region of New Hampshire;

$500,000—Louisville Zoo for the Diane Fossey Mountain

Gorilla program;

$150,000—Oregon Historical Society Permanent Exhibition;

$250,000—Pittsburgh Children’s Museum;

$510,000—Temple University Library for digitalization of

resources from its Urban History ad African-American collections;

$576,000—Franklin Institute for the Design of Life exhibition;

$925,000—Please Touch Museum in Philadelphia, Pennsylvania;

$500,000—Alaska Native Heritage Center portion of the

New Trade Winds project;

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$1,000,000—National Museum of Women in the Arts in

Washington D.C.; $1,200,000—Mississippi River Museum and Discovery

Center in Dubuque, Iowa for exhibit and library enhancement; $650,000—Salisbury House Foundation in Des Moines,

Iowa to improve security and preservation of its collection; $150,000—Linn County, Iowa Historical Museum History

Center in support of the ‘‘This Old Digital City’’ project; $4,000,000—Newsline for the Blind to expand services for the blind to libraries across the country including $100,000 for

the West Virginia Newsline for the Blind and $100,000 for the

Iowa Newsline for the Blind;

$1,000,000—Clay Center for the Arts and Sciences for a

multimedia display screen, and the fabrication and design of a

science exhibit;

$650,000—Bishops Museum in Hawaii as part of the ‘‘New

Trade Winds’’ project; $500,000—Wisconsin Maritime Museum for interactive exhibits;

$250,000—Natural History Museum of Los Angeles to continue outreach and educational activities;

$400,000—Perkins Geology Museum at the University of

Vermont to digitalize its collection; $400,000—Walt Whitman Cultural Arts Center in Camden, New Jersey to expand cultural education programs; $400,000—Plainfield Public Library in Plainfield, New Jersey to upgrade and expand computer and internet services; $150,000—Ducktown Arts District in Atlantic City, New

Jersey to expand access to cultural arts programs; $400,000—Lake Champlain Science Center for exhibits

and programs; $250,000—Foundation for the Arts, Music, and Entertainment of Shreveport-Bossier, Inc.; $100,000—Bryant College in Rhode Island for a technology

initiative linking libraries of institutions of higher education;

$120,000—Fenton Historical Museum of Jamestown, New

York;

$461,000—Abraham Lincoln Bicentennial Commission;

$43,000—Sumter County Library, Sumter, South Carolina

for the acquisition of library materials;

$85,000—New York Botanical Garden, Bronx, New York,

to expand access to plant specimen database;

$128,000—Nassau County Museum of Art in Roslyn Harbor, New York, to expand educational programs for elementary

and secondary students;

$128,000—Roberson Museum and Science Center in

Binghampton, New York for an educational science and engineering pilot program;

$128,000—North Carolina Museum of Life and Science for

development of BioQuest exhibits;

$170,000—George Eastman House in Rochester, New

York, to digitally archive and catalog photographic collections;

$213,000—Fitchburg Art Museum in Fitchburg, Massachusetts to expand public access through technology upgrades;

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$298,000—Columbia College, Chicago, Center for Black

Music Research in Chicago, Illinois, for education and outreach

activities;

$298,000—Mystic Seaport, the Museum of America and

the Sea, in Connecticut, to develop an informal learning laboratory;

$468,000—City of Houston Public Library, Houston, Texas,

for information technology development and equipment;

$410,000—AE Seaman Mineral Museum in Houghton,

Michigan;

$680,000—AMISTAD Research Center at Tulane University in New Orleans, Louisiana to expand automation, electronic communications, educational outreach and community

involvement activities;

$723,000—New Bedford Whaling Museum in Massachusetts for exhibits, technology upgrades and to expand public access;

$723,000—The George C. Page Museum, Los Angeles,

California to expand education and outreach programs;

$850,000—The Children’s Museum of Los Angeles, California, for development of exhibits, educational programs and

teacher training;

$850,000—Berman Museum of Art of Ursinus College,

Collegeville, Pennsylvania for expansion of an arts education

program and community outreach activities;

$2,125,000—Silas Bronson Library in Waterbury, Connecticut for information technology equipment and upgrades;

$2,435,000—New York Public Library for the development

of a digital archive at the Schomburg Center for Research in

Black Culture to document African American migration;

$425,000—National Aviary in Pittsburgh, Pennsylvania, in

collaboration with Carnegie Mellon University, to develop and

utilize interactive mobile robots in support of distance learning;

$723,000—Old Sturbridge Village, Sturbridge, Massachusetts for the development of a distance learning project.

MEDICARE PAYMENT ADVISORY COMMISSION

The conference agreement provides $8,000,000 for the Medicare Payment Advisory Commission (MedPAC), the same as both

the House and the Senate. A documented national shortage of geriatricians, physicians who specialize in the management of care for

frail, older persons, exists. The shortage has occurred, in part, because of inadequate Medicare reimbursement and physician training payment restrictions. For this reason, MedPAC should study

the issue, reporting specifically on how the hospital specific cap on

residents for purposes of Medicare graduate medical education payments impacts geriatric training programs and providing recommendations regarding how to alter the cap to resolve this problem.

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NATIONAL COMMISSION ON LIBRARIES AND INFORMATION SCIENCE

The conference agreement includes $1,495,000 for the National

Commission on Libraries and Information Science as proposed by

the Senate instead of $1,400,000 as proposed by the House.

NATIONAL COUNCIL ON DISABILITY

The conference agreement includes $2,615,000 for the National

Council on Disability as proposed by the Senate instead of

$2,450,000 as proposed by the House.

NATIONAL EDUCATION GOALS PANEL

The conference agreement includes $1,500,000 for the National

Education Goals Panel instead of $2,350,000 as proposed by the

Senate. The House bill did not propose funding for this agency.

NATIONAL LABOR RELATIONS BOARD

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

$205,717,000 as proposed by the House.

NATIONAL MEDIATION BOARD

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

$9,800,000 as proposed by the House.

OCCUPATIONAL SAFETY AND HEALTH REVIEW COMMISSION

The conference agreement includes $8,720,000 for the Occupational Safety and Health Review Commission as proposed by the

Senate instead of $8,600,000 as proposed by the House.

RAILROAD RETIREMENT BOARD

LIMITATION ON ADMINISTRATION

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

OFFICE OF INSPECTOR GENERAL

The conference agreement includes a limitation on transfers

from the railroad trust funds of $5,700,000 for administrative expenses of the Office of Inspector General as proposed by the Senate

instead of $5,380,000 as proposed by the House.

SOCIAL SECURITY ADMINISTRATION

SUPPLEMENTAL SECURITY INCOME PROGRAM

The conference agreement includes $23,344,000,000 for the

Supplemental Security Income Program instead of $23,354,000,000

as proposed by the Senate and $23,127,000,000 as proposed by the

House.

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LIMITATION ON ADMINISTRATIVE EXPENSES

The conference agreement includes a limitation of

$7,124,000,000 on transfers from the Social Security and Medicare

trust funds and Supplemental Security Income program for administrative activities instead of $6,978,036,000 as proposed by the

House and $7,010,800,000 as proposed by the Senate.

The conference agreement includes language proposed by the

House clarifying that the Social Security Administration may use

unexpended funds for investment in information technology and

telecommunications hardware and software infrastructure, including related equipment and non-payroll expenses associated solely

with information technology and telecommunications technology.

The agreement also includes language proposed by the House that

requires the Secretary of the Treasury to reimburse the Trust Fund

from the General Fund for the cost of official time for federal employees and facilities and support services for labor organizations.

The Senate bill contained no similar provisions.

OFFICE OF INSPECTOR GENERAL

The conference agreement includes $69,444,000 for the Office

of Inspector General through a combination of general revenues

and limitations on trust fund transfers as proposed by the Senate

instead of $65,752,000 as proposed by the House.

UNITED STATES INSTITUTE OF PEACE

The conference agreement includes $15,000,000 for the United

States Institute of Peace as proposed by the House instead of

$12,951,000 as proposed by the Senate. The conferees direct the

United States Institute of Peace to provide information in the fiscal

year 2002 Congressional budget justification regarding the use of

appropriated funds in the Endowment. Included in this information

should be the total amount of appropriated funds transferred into

the Endowment from the most recent fiscal year available, the total

amount of interest earned in the fiscal year on those funds, a list

of all dates in which draw downs occur and those amounts, and a

beginning and end of year balance of the Endowment.

TITLE V—GENERAL PROVISIONS

DISTRIBUTION OF STERILE NEEDLES

The conference agreement includes a provision proposed by the

House that prohibits the use of funds in this Act to carry out any

program of distributing sterile needles or syringes for the hypodermic injection of any illegal drug. The Senate bill contained a

similar provision except that it would have allowed for such a program if the Secretary of Health and Human Services determines

that these programs are effective in preventing the spread of HIV

and do not encourage the use of illegal drugs.

FIFTH QUARTER OBLIGATIONS

The conference agreement does not include a provision proposed by both the House and Senate to allow fiscal year 2000 unobVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00230 Fmt 6601 Sfmt 6601 E:\HR\OC\HR1033.002 pfrm03 PsN: HR1033
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ligated balances for salaries and expenses to remain available

through the first quarter of fiscal year 2001.

RESTORING SSI BENEFITS PAYMENTS TO APPROPRIATE YEAR

The conference agreement does not include a provision proposed by the House to restore benefit payments for Supplemental

Security Income to the appropriate year. The Senate bill contained

no similar provision.

EVALUATION OF ABSTINENCE EDUCATION PROGRAMS

The conference agreement includes a provision proposed by the

House to extend the funding available for evaluations of abstinence

education programs to 2005 and provides for an interim report not

later than January 1, 2002. The Senate bill contained no similar

provision.

TEMPORARY ASSISTANCE TO NEEDY FAMILIES (TANF)

The conference agreement does not include a provision proposed by the Senate to reduce TANF supplemental grants in fiscal

year 2001. The House bill contained no similar provision.

DISCRETIONARY ADVANCE APPROPRIATION REDUCTION

The conference agreement does not include a provision proposed by the House to rescind funds from the Payments to States

for the Child Care and Development Block Grant if the total level

of discretionary advance appropriations for fiscal year 2002 exceeds

$23,500,000,000. The Senate bill contained no similar provision.

UNIQUE HEALTH IDENTIFIER

The conference agreement includes a provision proposed by the

Senate to prohibit the promulgation or adoption of any final standard relating to a unique health identifier until legislation is enacted specifically approving the standard. The House bill contained

a similar provision except it did not provide for legislative action.

STATE SUPPLEMENTARY PAYMENTS

The conference agreement includes language proposed by the

Senate that accelerates the effective date of current law requiring

a State that has entered into an agreement with the Social Security Administration for Federal administration of State supplementary payments be required to remit payments and fees no later

than the business day preceeding the SSI payment from September, 2000 to September, 2001.

MILITARY RECRUITING AT SECONDARY SCHOOLS

The conference agreement does not include a provision proposed by the House preventing secondary schools from prohibiting

military recruitment. The Senate bill contained no similar provision.

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NIH LICENSE AGREEMENTS

The conferees do not include a provision proposed by the House

regarding NIH license agreements. The Senate bill contained no

similar provision.

ACROSS-THE-BOARD ADMINISTRATIVE AND RELATED EXPENSES

REDUCTION

The conference agreement includes a provision to reduce administrative and related expenses of the Departments of Labor,

Health and Human Services, and Education by $25,000,000.

EMERGENCY CONTRACEPTION DISTRIBUTION THROUGH SCHOOL

CLINICS

The conference agreement does not include a provision proposed by the Senate to prohibit the distribution of or prescription

for postcoital emergency contraception to an unemancipated minor

on the premises or in the facilities of any elementary or secondary

school. The House bill contained no similar provision.

RIGHTS OF RESIDENTS OF CERTAIN FACILITIES

The conference agreement does not include a provision proposed by the Senate to amend the Public Health Service Act to add

a new section titled ‘‘Requirement Relating to the Rights of Residents of Certain Facilities’’. The House bill contained no similar

provision.

SENSE OF THE SENATE ON EARLY HEAD START

The conference agreement deletes without prejudice a Sense of

the Senate provision regarding blood lead screening tests on children enrolled in early head start programs. The House bill contained no similar provision.

SENSE OF THE SENATE ON A STUDY OF SEXUAL ABUSE IN SCHOOLS

The conference agreement deletes without prejudice a Sense of

the Senate provision regarding a study on the issue of sexual abuse

in schools. The House bill contained no similar provision.

GAO STUDY INTO FEDERAL FETAL TISSUE PRACTICES

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

GENETIC INFORMATION NONDISCRIMINATION IN HEALTH INSURANCE

ACT OF 1999

The conference agreement does not include a provision proposed by the Senate regarding genetic information. The House bill

contained no similar provision.

HEALTH CARE ACCESS AND PROTECTIONS FOR CONSUMERS

The conference agreement does not include the health care access and protections for consumers provision as proposed by the

Senate. The House bill contained no similar provision.

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HUMAN PAPILLOMAVIRUS

The conference agreement includes a provision related to

human papillomavirus. The House and Senate bills contained no

similar provision.

SACCHARIN LABELING

The conference agreement includes a provision that repeals the

mandated saccharin warning label. The House and Senate bills

contained no similar provision.

SPECIAL BENEFITS FOR CERTAIN WORLD WAR II VETERANS

The conference agreement includes a provision which allows a

State and the Commissioner of Social Security to enter into an

agreement under which the Commissioner would make State payments, on behalf of the State, to supplement federal payments provided under Title VIII of the Social Security Act.

STATUTORY EMPLOYEES

The Conferees note that, given the complexity of issues that

were considered under prior law in correctly determining the

amount of Supplemental Security Income payable to individuals

who are classified as ‘‘statutory employees’’, or their dependents,

that in the past cases may have been determined erroneously. The

Conferees urge the Social Security Administration to act favorably

on requests for waiver of overpayment that may have accrued in

such cases.

TITLE VI—ASSETS FOR INDEPENDENCE ACT

The conference agreement includes amendments to the Assets

for Independence Act to make technical and conforming changes to

ensure accurate research and measurement of the effectiveness of

Individual Development Accounts.

TITLE VII—PHYSICAL EDUCATION FOR PROGRESS

PROGRAM

The conference agreement includes the Physical Education for

Progress program which will enable local educational agencies to

initiate, expand, and improve physical education programs for all

K–12 students.

TITLE VIII—EARLY LEARNING OPPORTUNITIES

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

early childhood education.

TITLE IX—RURAL EDUCATION

The conference agreement includes the Rural Achievement Act,

which amends Part J of Title X of the Elementary and Secondary

Education Act (ESEA) of 1965 to better address the different needs

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cational agency (LEA) would be able to combine funding under various ESEA programs to support compensatory education, teacher

professional development, education technology, and school drug

and violence prevention activities authorized under ESEA that are

intended to improve the academic achievement of elementary and

secondary school students.

CONFERENCE AGREEMENT

The following table displays the amounts agreed to for each

program, project or activity with appropriate comparisons:

231

232

233

234

235

236

237

238

239

240

241

242

243

244

245

246

247

248

249

250

251

252

253

254

255

256

257

258

259

260

261

262

263

264

265

266

267

268

269

270

271

272

273

274

275

276

277

278

279

280

281

282

283

284

285

286

287

288

LEGISLATIVE BRANCH APPROPRIATIONS

The conference agreement would enact the provisions of H.R.

5657 as introduced on December 14, 2000. The text of that bill follows:

A BILL Making appropriations for the Legislative Branch for the fiscal year ending

September 30, 2001, and for other purposes.

Be it enacted by the Senate and House of Representatives of the

United States of America in Congress assembled, That the following

sums are appropriated, out of any money in the Treasury not otherwise appropriated, for the Legislative Branch for the fiscal year ending September 30, 2001, and for other purposes, namely:

TITLE I—CONGRESSIONAL OPERATIONS

SENATE

PAYMENT TO WIDOWS AND HEIRS OF DECEASED MEMBERS OF

CONGRESS

For a payment to Nancy Nally Coverdell, widow of Paul D.

Coverdell, late a Senator from Georgia, $141,300.

EXPENSE ALLOWANCES

For expense allowances of the Vice President, $10,000; the

President Pro Tempore of the Senate, $10,000; Majority Leader of

the Senate, $10,000; Minority Leader of the Senate, $10,000; Majority Whip of the Senate, $5,000; Minority Whip of the Senate, $5,000;

and Chairmen of the Majority and Minority Conference Committees,

$3,000 for each Chairman; and Chairmen of the Majority and Minority Policy Committees, $3,000 for each Chairman; in all,

$62,000.

REPRESENTATION ALLOWANCES FOR THE MAJORITY AND MINORITY

LEADERS

For representation allowances of the Majority and Minority

Leaders of the Senate, $15,000 for each such Leader; in all, $30,000.

SALARIES, OFFICERS AND EMPLOYEES

For compensation of officers, employees, and others as authorized by law, including agency contributions, $92,321,000, which

shall be paid from this appropriation without regard to the below

limitations, as follows:

OFFICE OF THE VICE PRESIDENT

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

OFFICE OF THE PRESIDENT PRO TEMPORE

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

OFFICES OF THE MAJORITY AND MINORITY LEADERS

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

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OFFICES OF THE MAJORITY AND MINORITY WHIPS

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

COMMITTEE ON APPROPRIATIONS

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

CONFERENCE COMMITTEES

For the Conference of the Majority and the Conference of the

Minority, at rates of compensation to be fixed by the Chairman of

each such committee, $1,152,000 for each such committee; in all,

$2,304,000.

OFFICES OF THE SECRETARIES OF THE CONFERENCE OF THE

MAJORITY AND THE CONFERENCE OF THE MINORITY

For Offices of the Secretaries of the Conference of the Majority

and the Conference of the Minority, $590,000.

POLICY COMMITTEES

For salaries of the Majority Policy Committee and the Minority

Policy Committee, $1,171,000 for each such committee; in all,

$2,342,000.

OFFICE OF THE CHAPLAIN

For Office of the Chaplain, $288,000.

OFFICE OF THE SECRETARY

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

OFFICE OF THE SERGEANT AT ARMS AND DOORKEEPER

For Office of the Sergeant at Arms and Doorkeeper,

$34,811,000.

OFFICES OF THE SECRETARIES FOR THE MAJORITY AND MINORITY

For Offices of the Secretary for the Majority and the Secretary

for the Minority, $1,292,000.

AGENCY CONTRIBUTIONS AND RELATED EXPENSES

For agency contributions for employee benefits, as authorized by

law, and related expenses, $22,337,000.

OFFICE OF THE LEGISLATIVE COUNSEL OF THE SENATE

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

OFFICE OF SENATE LEGAL COUNSEL

For salaries and expenses of the Office of Senate Legal Counsel,

$1,069,000.

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EXPENSE ALLOWANCES OF THE SECRETARY OF THE SENATE, SERGEANT AT ARMS AND DOORKEEPER OF THE SENATE, AND SECRETARIES FOR THE MAJORITY AND MINORITY OF THE SENATE

For expense allowances of the Secretary of the Senate, $3,000;

Sergeant at Arms and Doorkeeper of the Senate, $3,000; Secretary

for the Majority of the Senate, $3,000; Secretary for the Minority of

the Senate, $3,000; in all, $12,000.

CONTINGENT EXPENSES OF THE SENATE

INQUIRIES AND INVESTIGATIONS

For expenses of inquiries and investigations ordered by the Senate, or conducted pursuant to section 134(a) of Public Law 601, Seventy-ninth Congress, as amended, section 112 of Public Law 96–304

and Senate Resolution 281, agreed to March 11, 1980, $73,000,000.

EXPENSES OF THE UNITED STATES SENATE CAUCUS ON

INTERNATIONAL NARCOTICS CONTROL

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

SECRETARY OF THE SENATE

For expenses of the Office of the Secretary of the Senate,

$2,077,000.

SERGEANT AT ARMS AND DOORKEEPER OF THE SENATE

For expenses of the Office of the Sergeant at Arms and Doorkeeper of the Senate, $71,511,000, of which $2,500,000 shall remain

available until September 30, 2003.

MISCELLANEOUS ITEMS

For miscellaneous items, $8,655,000.

SENATORS’ OFFICIAL PERSONNEL AND OFFICE EXPENSE ACCOUNT

For Senators’ Official Personnel and Office Expense Account,

$253,203,000.

OFFICIAL MAIL COSTS

For expenses necessary for official mail costs of the Senate

$300,000.

ADMINISTRATIVE PROVISIONS

SECTION 1. SEMIANNUAL REPORT. (a) IN GENERAL.—Section

105(a) of the Legislative Branch Appropriations Act, 1965 (2 U.S.C.

104a) is amended by adding at the end the following:

‘‘(5)(A) Notwithstanding the requirements of paragraph (1) relating to the level of detail of statement and itemization, each report

by the Secretary of the Senate required under such paragraph shall

be compiled at a summary level for each office of the Senate authorized to obligate appropriated funds.

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‘‘(B) Subparagraph (A) shall not apply to the reporting of expenditures relating to personnel compensation, travel and transportation of persons, other contractual services, and acquisition of assets.

‘‘(C) In carrying out this paragraph the Secretary of the Senate

shall apply the Standard Federal Object Classification of Expenses

as the Secretary determines appropriate.’’.

(b) EFFECTIVE DATE AND APPLICATION.— (1) IN GENERAL.—Subject to paragraph (2), the amendment

made by this section shall take effect on the date of enactment

of this Act.

(2) FIRST REPORT AFTER ENACTMENT.—The Secretary of the

Senate may elect to compile and submit the report for the semiannual period during which the date of enactment of this section occurs, as if the amendment made by this section had not

been enacted.

SEC. 2. SENATE EMPLOYEE PAY ADJUSTMENTS. Section 4 of the

Federal Pay Comparability Act of 1970 (2 U.S.C. 60a–1) is

amended—

(1) in subsection (a)—

(A) by inserting ‘‘(or section 5304 or 5304a of such title,

as applied to employees employed in the pay locality of the

Washington, D.C.-Baltimore, Maryland consolidated metropolitan statistical area)’’ after ‘‘employees under section

5303 of title 5, United States Code,’’; and

(B) by inserting ‘‘(and, as the case may be, section 5304

or 5304a of such title, as applied to employees employed in

the pay locality of the Washington, D.C.-Baltimore, Maryland consolidated metropolitan statistical area)’’ after ‘‘the

President under such section 5303’’;

(2) by redesignating subsection (e) as subsection (f ); and

(3) by inserting after subsection (d) the following:

‘‘(e) Any percentage used in any statute specifically providing

for an adjustment in rates of pay in lieu of an adjustment made

under section 5303 of title 5, United States Code, and, as the case

may be, section 5304 or 5304a of such title for any calendar year

shall be treated as the percentage used in an adjustment made

under such section 5303, 5304, or 5304a, as applicable, for purposes

of subsection (a).’’.

SEC. 3. (a) Section 6(c) of the Legislative Branch Appropriations

Act, 1999 (2 U.S.C. 121b–1(c)) is amended—

(1) by striking ‘‘and agency contributions’’ in paragraph

(2)(A), and

(2) by adding at the end the following:

‘‘(3) Agency contributions for employees of Senate Hair Care

Services shall be paid from the appropriations account for ‘SALARIES, OFFICERS AND EMPLOYEES’.’’.

(b) This section shall apply to pay periods beginning on or after

October 1, 2000.

SEC. 4. (a) There is established in the Treasury of the United

States a revolving fund to be known as the Senate Health and Fitness Facility Revolving Fund (‘‘the revolving fund’’).

(b) The Architect of the Capitol shall deposit in the revolving

fund—

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(1) any amounts received as dues or other assessments for

use of the Senate Health and Fitness Facility, and

(2) any amounts received from the operation of the Senate

waste recycling program.

(c) Subject to the approval of the Committee on Appropriations

of the Senate, amounts in the revolving fund shall be available to

the Architect of the Capitol, without fiscal year limitation, for payment of costs of the Senate Health and Fitness Facility.

(d) The Architect of the Capitol shall withdraw from the revolving fund and deposit in the Treasury of the United States as miscellaneous receipts all moneys in the revolving fund that the Architect determines are in excess of the current and reasonably foreseeable needs of the Senate Health and Fitness Facility.

(e) Subject to the approval of the Committee on Rules and Administration of the Senate, the Architect of the Capitol may issue

such regulations as may be necessary to carry out the provisions of

this section.

SEC. 5. For each fiscal year (commencing with the fiscal year

ending September 30, 2001), there is authorized an expense allowance for the Chairmen of the Majority and Minority Policy Committees which shall not exceed $3,000 each fiscal year for each such

Chairman; and amounts from such allowance shall be paid to either of such Chairmen only as reimbursement for actual expenses

incurred by him and upon certification and documentation of such

expenses, and amounts so paid shall not be reported as income and

shall not be allowed as a deduction under the Internal Revenue

Code of 1986.

SEC. 6. (a) The head of the employing office of an employee of

the Senate may, upon termination of employment of the employee,

authorize payment of a lump sum for the accrued annual leave of

that employee if—

(1) the head of the employing office—

(A) has approved a written leave policy authorizing employees to accrue leave and establishing the conditions

upon which accrued leave may be paid; and

(B) submits written certification to the Financial Clerk

of the Senate of the number of days of annual leave accrued

by the employee for which payment is to be made under the

written leave policy of the employing office; and

(2) there are sufficient funds to cover the lump sum payment.

(b)(1) A lump sum payment under this section shall not exceed

the lesser of—

(A) twice the monthly rate of pay of the employee; or

(B) the product of the daily rate of pay of the employee and

the number of days of accrued annual leave of the employee.

(2) The Secretary of the Senate shall determine the rates of pay

of an employee under paragraph (1) (A) and (B) on the basis of the

annual rate of pay of the employee in effect on the date of termination of employment.

(c) Any payment under this section shall be paid from the appropriation account or fund used to pay the employee.

(d) If an individual who received a lump sum payment under

this section is reemployed as an employee of the Senate before the

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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

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Majority Whip, including the Chief Deputy Majority Whip,

$1,466,000, including $5,000 for official expenses of the Majority

Whip; Office of the Minority Whip, including the Chief Deputy Minority Whip, $1,096,000, including $5,000 for official expenses of the

Minority Whip; Speaker’s Office for Legislative Floor Activities,

$410,000; Republican Steering Committee, $765,000; Republican

Conference, $1,255,000; Democratic Steering and Policy Committee,

$1,352,000; Democratic Caucus, $668,000; nine minority employees,

$1,229,000; training and program development—majority,

$278,000; and training and program development—minority,

$278,000.

MEMBERS’ REPRESENTATIONAL ALLOWANCES

INCLUDING MEMBERS’ CLERK HIRE, OFFICIAL EXPENSES OF

MEMBERS, AND OFFICIAL MAIL

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

COMMITTEE EMPLOYEES

STANDING COMMITTEES, SPECIAL AND SELECT

For salaries and expenses of standing committees, special and select, authorized by House resolutions, $92,196,000: Provided, That

such amount shall remain available for such salaries and expenses

until December 31, 2002.

COMMITTEE ON APPROPRIATIONS

For salaries and expenses of the Committee on Appropriations,

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

2002.

SALARIES, OFFICERS AND EMPLOYEES

For compensation and expenses of officers and employees, as

authorized by law, $90,403,000, including: for salaries and expenses

of the Office of the Clerk, including not more than $3,500, of which

not more than $2,500 is for the Family Room, for official representation and reception expenses, $14,590,000; for salaries and expenses

of the Office of the Sergeant at Arms, including the position of Superintendent of Garages, and including not more than $750 for official representation and reception expenses, $3,692,000; for salaries

and expenses of the Office of the Chief Administrative Officer,

$58,550,000, of which $1,054,000 shall remain available until expended, including $26,605,000 for salaries, expenses and temporary

personal services of House Information Resources, of which

$26,020,000 is provided herein: Provided, That of the amount provided for House Information Resources, $6,497,000 shall be for net

expenses of telecommunications: Provided further, That House InforVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00298 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.002 pfrm03 PsN: HR1033
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mation Resources is authorized to receive reimbursement from Members of the House of Representatives and other governmental entities

for services provided and such reimbursement shall be deposited in

the Treasury for credit to this account; for salaries and expenses of

the Office of the Inspector General, $3,249,000; for salaries and expenses of the Office of General Counsel, $806,000; for the Office of

the Chaplain, $140,000; for salaries and expenses of the Office of the

Parliamentarian, including the Parliamentarian and $2,000 for

preparing the Digest of Rules, $1,201,000; for salaries and expenses

of the Office of the Law Revision Counsel of the House, $2,045,000;

for salaries and expenses of the Office of the Legislative Counsel of

the House, $5,085,000; for salaries and expenses of the Corrections

Calendar Office, $832,000; and for other authorized employees,

$213,000.

ALLOWANCES AND EXPENSES

For allowances and expenses as authorized by House resolution

or law, $141,764,000, including: supplies, materials, administrative

costs and Federal tort claims, $2,235,000; official mail for committees, leadership offices, and administrative offices of the House,

$410,000; Government contributions for health, retirement, Social

Security, and other applicable employee benefits, $138,726,000; and

miscellaneous items including purchase, exchange, maintenance, repair and operation of House motor vehicles, interparliamentary receptions, and gratuities to heirs of deceased employees of the House,

$393,000.

CHILD CARE CENTER

For salaries and expenses of the House of Representatives Child

Care Center, such amounts as are deposited in the account established by section 312(d)(1) of the Legislative Branch Appropriations

Act, 1992 (40 U.S.C. 184g(d)(1)), subject to the level specified in the

budget of the Center, as submitted to the Committee on Appropriations of the House of Representatives.

ADMINISTRATIVE PROVISIONS

SEC. 101. During fiscal year 2001 and any succeeding fiscal

year, the Chief Administrative Officer of the House of Representatives may—

(1) enter into contracts for the acquisition of severable services for a period that begins in 1 fiscal year and ends in the

next fiscal year to the same extent as the head of an executive

agency under the authority of section 303L of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 253l);

and

(2) enter into multi-year contracts for the acquisitions of

property and nonaudit-related services to the same extent as executive agencies under the authority of section 304B of the Federal Property and Administrative Services Act of 1949 (41

U.S.C. 254c).

SEC. 102. (a) PERMITTING NEW HOUSE EMPLOYEES TO BE

PLACED ABOVE MINIMUM STEP OF COMPENSATION LEVEL.—The

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House Employees Position Classification Act (2 U.S.C. 291 et seq.)

is amended by striking section 10 (2 U.S.C. 299).

(b) EFFECTIVE DATE.—The amendment made by subsection (a)

shall apply with respect to employees appointed on or after October

1, 2000.

SEC. 103. (a) REQUIRING AMOUNTS REMAINING IN MEMBERS’

REPRESENTATIONAL ALLOWANCES TO BE USED FOR DEFICIT REDUCTION OR TO REDUCE THE FEDERAL DEBT.—Notwithstanding any

other provision of law, any amounts appropriated under this Act for

‘‘HOUSE OF REPRESENTATIVES—SALARIES AND EXPENSES—

MEMBERS’ REPRESENTATIONAL ALLOWANCES’’ shall be available

only for fiscal year 2001. Any amount remaining after all payments

are made under such allowances for fiscal year 2001 shall be deposited in the Treasury and used for deficit reduction (or, if there is

no Federal budget deficit after all such payments have been made,

for reducing the Federal debt, in such manner as the Secretary of

the Treasury considers appropriate).

(b) REGULATIONS.—The Committee on House Administration of

the House of Representatives shall have authority to prescribe regulations to carry out this section.

(c) DEFINITION.—As used in this section, the term ‘‘Member of

the House of Representatives’’ means a Representative in, or a Delegate or Resident Commissioner to, the Congress.

SEC. 104. (a) There is hereby appropriated for payment to the

Prince William County Public Schools $215,000, to be used to pay

for educational services for the son of Mrs. Evelyn Gibson, the

widow of Detective John Michael Gibson of the United States Capitol Police.

(b) The payment under subsection (a) shall be made in accordance with terms and conditions established by the Committee on

House Administration of the House of Representatives.

(c) The funds used for the payment made under subsection (a)

shall be derived from the applicable accounts of the House of Representatives.

JOINT ITEMS

For Joint Committees, as follows:

JOINT CONGRESSIONAL COMMITTEE ON INAUGURAL CEREMONIES OF

2001

For all construction expenses, salaries, and other expenses associated with conducting the inaugural ceremonies of the President

and Vice President of the United States, January 20, 2001, in accordance with such program as may be adopted by the joint committee authorized by Senate Concurrent Resolution 89, agreed to

March 14, 2000 (One Hundred Sixth Congress), and Senate Concurrent Resolution 90, agreed to March 14, 2000 (One Hundred Sixth

Congress), $1,000,000 to be disbursed by the Secretary of the Senate

and to remain available until September 30, 2001. Funds made

available under this heading shall be available for payment, on a

direct or reimbursable basis, whether incurred on, before, or after,

October 1, 2000: Provided, That the compensation of any employee

of the Committee on Rules and Administration of the Senate who

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has been designated to perform service for the Joint Congressional

Committee on Inaugural Ceremonies shall continue to be paid by

the Committee on Rules and Administration, but the account from

which such staff member is paid may be reimbursed for the services

of the staff member (including agency contributions when appropriate) out of funds made available under this heading.

ADMINISTRATIVE PROVISION

SEC. 105. During fiscal year 2001 the Secretary of Defense shall

provide protective services on a non-reimbursable basis to the

United States Capitol Police with respect to the following events:

(1) Upon request of the Chair of the Joint Congressional

Committee on Inaugural Ceremonies established under Senate

Concurrent Resolution 89, One Hundred Sixth Congress, agreed

to March 14, 2000, the proceedings and ceremonies conducted

for the inauguration of the President-elect and Vice Presidentelect 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.

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CAPITOL POLICE BOARD

CAPITOL POLICE

SALARIES

For the Capitol Police Board for salaries of officers, members,

and employees of the Capitol Police, including overtime, hazardous

duty pay differential, clothing allowance of not more than $600 each

for members required to wear civilian attire, and Government contributions for health, retirement, Social Security, and other applicable employee benefits, $97,142,000, of which $47,053,000 is provided

to the Sergeant at Arms of the House of Representatives, to be disbursed by the Chief Administrative Officer of the House, and

$50,089,000 is provided to the Sergeant at Arms and Doorkeeper of

the Senate, to be disbursed by the Secretary of the Senate: Provided,

That, of the amounts appropriated under this heading, such

amounts as may be necessary may be transferred between the Sergeant at Arms of the House of Representatives and the Sergeant at

Arms and Doorkeeper of the Senate, upon approval of the Committee on Appropriations of the House of Representatives and the

Committee on Appropriations of the Senate.

GENERAL EXPENSES

For the Capitol Police Board for necessary expenses of the Capitol Police, including motor vehicles, communications and other

equipment, security equipment and installation, uniforms, weapons,

supplies, materials, training, medical services, forensic services,

stenographic services, personal and professional services, the employee assistance program, not more than $2,000 for the awards

program, postage, telephone service, travel advances, relocation of

instructor and liaison personnel for the Federal Law Enforcement

Training Center, and $85 per month for extra services performed for

the Capitol Police Board by an employee of the Sergeant at Arms

of the Senate or the House of Representatives designated by the

Chairman of the Board, $6,772,000, to be disbursed by the Capitol

Police Board or their delegee: Provided, That, notwithstanding any

other provision of law, the cost of basic training for the Capitol Police at the Federal Law Enforcement Training Center for fiscal year

2001 shall be paid by the Secretary of the Treasury from funds

available to the Department of the Treasury.

ADMINISTRATIVE PROVISIONS

SEC. 106. Amounts appropriated for fiscal year 2001 for the

Capitol Police Board for the Capitol Police may be transferred between the headings ‘‘SALARIES’’ and ‘‘GENERAL EXPENSES’’ upon the

approval of—

(1) the Committee on Appropriations of the House of Representatives, in the case of amounts transferred from the appropriation provided to the Sergeant at Arms of the House of Representatives under the heading ‘‘SALARIES’’;

(2) the Committee on Appropriations of the Senate, in the

case of amounts transferred from the appropriation provided to

299

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 OFFI- CERS.— (1) IN GENERAL.—Each officer or employee of the Capitol

Police who has been duly authorized in writing by the Chief Administrative Officer, or the Capitol Police Board if there is not

a Chief Administrative Officer, to certify vouchers pursuant to

subsection (a) shall—

(A) be held responsible for the existence and correctness

of the facts recited in the certificate or otherwise stated on

the voucher or its supporting papers and for the legality of

the proposed payment under the appropriation or fund involved;

(B) be held responsible and accountable for the correctness of the computations of certified vouchers; and

(C) be held accountable for and required to make good

to the United States the amount of any illegal, improper,

or incorrect payment resulting from any false, inaccurate,

or misleading certificate made by such officer or employee,

as well as for any payment prohibited by law or which did

not represent a legal obligation under the appropriation or

fund involved.

(2) RELIEF BY COMPTROLLER GENERAL.—The Comptroller

General may, at the Comptroller General’s discretion, relieve

such certifying officer or employee of liability for any payment

otherwise proper if the Comptroller General finds—

(A) that the certification was based on official records

and that the certifying officer or employee did not know,

and by reasonable diligence and inquiry could not have

ascertained, the actual facts; or

(B) that the obligation was incurred in good faith, that

the payment was not contrary to any statutory provision

specifically prohibiting payments of the character involved,

and the United States has received value for such payment.

(c) ENFORCEMENT OF LIABILITY.—The liability of the certifying

officers of the United States Capitol Police shall be enforced in the

same manner and to the same extent as currently provided with respect to the enforcement of the liability of disbursing and other accountable officers, and such officers shall have the right to apply for

and obtain a decision by the Comptroller General on any question

of law involved in a payment on any vouchers presented to them for

certification.

SEC. 108. CHIEF ADMINISTRATIVE OFFICER.—(a) There shall be

within the Capitol Police an Office of Administration to be headed

by a Chief Administrative Officer:

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(1) The Chief Administrative Officer shall be appointed by

the Comptroller General after consultation with the Capitol Police Board, and shall report to and serve at the pleasure of the

Comptroller General.

(2) The Comptroller General shall appoint as Chief Administrative Officer an individual with the knowledge and skills

necessary to carry out the responsibilities for budgeting, financial management, information technology, and human resource

management described in this section.

(3) The Chief Administrative Officer shall receive basic pay

at a rate determined by the Comptroller General, but not to exceed the annual rate of basic pay payable for ES–2 of the Senior

Executive Service Basic Rates Schedule established for members

of the Senior Executive Service of the General Accounting Office

under section 733 of title 31.

(4) The Capitol Police shall reimburse from available appropriations any costs incurred by the General Accounting Office under this section.

(b) The Chief Administrative Officer shall have the following

areas of responsibility:

(1) BUDGETING.—The Chief Administrative Officer shall—

(A) after consulting with the Chief of Police on the portion of the budget covering uniformed police force personnel, prepare and submit to the Capitol Police Board an

annual budget for the Capitol Police; and

(B) execute the budget and monitor through periodic

examinations the execution of the Capitol Police budget in

relation to actual obligations and expenditures.

(2) FINANCIAL MANAGEMENT.—The Chief Administrative

Officer shall—

(A) oversee all financial management activities relating

to the programs and operations of the Capitol Police;

(B) develop and maintain an integrated accounting

and financial system for the Capitol Police, including financial reporting and internal controls, which—

(i) complies with applicable accounting principles,

standards, and requirements, and internal control

standards;

(ii) complies with any other requirements applicable to such systems;

(iii) provides for—

(I) complete, reliable, consistent, and timely information which is prepared on a uniform basis

and which is responsive to financial information

needs of the Capitol Police;

(II) the development and reporting of cost information;

(III) the integration of accounting and budgeting information; and

(IV) the systematic measurement of performance;

(C) direct, manage, and provide policy guidance and

oversight of Capitol Police financial management personnel, activities, and operations, including—

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(i) the recruitment, selection, and training of personnel to carry out Capitol Police financial management functions; and

(ii) the implementation of Capitol Police asset

management systems, including systems for cash management, debt collection, and property and inventory

management and control; and

(D) the Chief Administrative Officer shall prepare annual financial statements for the Capitol Police and provide for an annual audit of the financial statements by an

independent public accountant in accordance with generally accepted government auditing standards.

(3) INFORMATION TECHNOLOGY.—The Chief Administrative

Officer shall—

(A) direct, coordinate, and oversee the acquisition, use,

and management of information technology by the Capitol

Police;

(B) promote and oversee the use of information technology to improve the efficiency and effectiveness of programs of the Capitol Police; and

(C) establish and enforce information technology principles, guidelines, and objectives, including developing and

maintaining an information technology architecture for the

Capitol Police.

(4) HUMAN RESOURCES.—The Chief Administrative Officer

shall—

(A) direct, coordinate, and oversee human resource

management activities of the Capitol Police, except that

with respect to uniformed police force personnel, the Chief

Administrative Officer shall perform these activities in cooperation with the Chief of the Capitol Police;

(B) develop and monitor payroll and time and attendance systems and employee services; and

(C) develop and monitor processes for recruiting, selecting, appraising, and promoting employees.

(c) Administrative provisions with respect to the Office of Administration:

(1) The Chief Administrative Officer is authorized to select,

appoint, employ, and discharge such officers and employees as

may be necessary to carry out the functions, powers, and duties

of the Office of Administration but he shall not have the authority to hire or discharge uniformed police force personnel.

(2) The Chief Administrative Officer may utilize resources

of another agency on a reimbursable basis to be paid from

available appropriations of the Capitol Police.

(d) No later than 180 days after appointment, the Chief Administrative Officer shall prepare, after consultation with the Capitol

Police Board and the Chief of the Capitol Police, a plan—

(1) describing the policies, procedures, and actions the

Chief Administrative Officer will take in carrying out the responsibilities assigned under this section;

(2) identifying and defining responsibilities and roles of all

offices, bureaus, and divisions of the Capitol Police for budgVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00305 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.002 pfrm03 PsN: HR1033
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eting, financial management, information technology, and

human resources management; and

(3) detailing mechanisms for ensuring that the offices, bureaus, and divisions perform their responsibilities and roles in

a coordinated and integrated manner.

(e) No later than September 30, 2001, the Chief Administrative

Officer shall prepare, after consultation with the Capitol Police

Board and the Chief of the Capitol Police, a report on the Chief Administrative Officer’s progress in implementing the plan described

in subsection (d) and recommendations to improve the budgeting, financial, information technology, and human resources management

of the Capitol Police, including organizational, accounting and administrative control, and personnel changes.

(f) The Chief Administrative Officer shall submit the plan required in subsection (d) and the report required in subsection (e) to

the Committees on Appropriations of the House of Representatives

and of the Senate, the Committee on House Administration of the

House of Representatives, and the Committee on Rules and Administration of the Senate.

(g) As of October 1, 2002, unless otherwise determined by the

Comptroller General, the Chief Administrative Officer established

by section (a) will cease to be an employee of the General Accounting

Office and will become an employee of the Capitol Police, and the

Capitol Police Board shall assume all responsibilities of the Comptroller General under this section.

SEC. 109. (a) Section 1(c) of Public Law 96–152 (40 U.S.C. 206–

1) is amended by striking ‘‘the annual rate’’ and all that follows and

inserting the following: ‘‘the rate of basic pay payable for level ES–

4 of the Senior Executive Service, as established under subchapter

VIII of chapter 53 of title 5, United States Code (taking into account

any comparability payments made under section 5304(h) of such

title).’’.

(b) The amendment made by subsection (a) shall apply with respect to pay periods beginning on or after the date of the enactment

of this Act.

CAPITOL GUIDE SERVICE AND SPECIAL SERVICES OFFICE

For salaries and expenses of the Capitol Guide Service and Special Services Office, $2,371,000, to be disbursed by the Secretary of

the Senate: Provided, That no part of such amount may be used to

employ more than 43 individuals: Provided further, That the Capitol Guide Board is authorized, during emergencies, to employ not

more than two additional individuals for not more than 120 days

each, and not more than 10 additional individuals for not more

than 6 months each, for the Capitol Guide Service.

STATEMENTS OF APPROPRIATIONS

For the preparation, under the direction of the Committees on

Appropriations of the Senate and the House of Representatives, of

the statements for the second session of the One Hundred Sixth Congress, showing appropriations made, indefinite appropriations, and

contracts authorized, together with a chronological history of the

regular appropriations bills as required by law, $30,000, to be paid

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to the persons designated by the chairmen of such committees to supervise the work.

OFFICE OF COMPLIANCE

SALARIES AND EXPENSES

For salaries and expenses of the Office of Compliance, as authorized by section 305 of the Congressional Accountability Act of

1995 (2 U.S.C. 1385), $1,820,000.

CONGRESSIONAL BUDGET OFFICE

SALARIES AND EXPENSES

For salaries and expenses necessary to carry out the provisions

of the Congressional Budget Act of 1974 (Public Law 93–344), including not more than $3,000 to be expended on the certification of

the Director of the Congressional Budget Office in connection with

official representation and reception expenses, $28,493,000: Provided, That no part of such amount may be used for the purchase

or hire of a passenger motor vehicle.

ADMINISTRATIVE PROVISION

SEC. 110. Beginning on the date of enactment of this Act and

hereafter, the Congressional Budget Office may use available funds

to enter into contracts for the procurement of severable services for

a period that begins in one fiscal year and ends in the next fiscal

year and may enter into multi-year contracts for the acquisition of

property and services, to the same extent as executive agencies under

the authority of section 303L and 304B, respectively, of the Federal

Property and Administrative Services Act (41 U.S.C. 253l and

254c).

ARCHITECT OF THE CAPITOL

CAPITOL BUILDINGS AND GROUNDS

CAPITOL BUILDINGS

SALARIES AND EXPENSES

For salaries for the Architect of the Capitol, the Assistant Architect of the Capitol, and other personal services, at rates of pay provided by law; for surveys and studies in connection with activities

under the care of the Architect of the Capitol; for all necessary expenses for the maintenance, care and operation of the Capitol and

electrical substations of the Senate and House office buildings under

the jurisdiction of the Architect of the Capitol, including furnishings

and office equipment, including not more than $1,000 for official reception and representation expenses, to be expended as the Architect

of the Capitol may approve; for purchase or exchange, maintenance

and operation of a passenger motor vehicle; and not to exceed

$20,000 for attendance, when specifically authorized by the Architect of the Capitol, at meetings or conventions in connection with

subjects related to work under the Architect of the Capitol,

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$43,689,000, of which $3,843,000 shall remain available until expended: Provided, That notwithstanding any other provision of law,

such amount shall be available for the position of Project Manager

for the Capitol Visitor Center, at a rate of compensation which does

not exceed the rate of basic pay payable for level ES–2 of the Senior

Executive Service, as established under subchapter VIII of chapter

53 of title 5, United States Code (taking into account any comparability payments made under section 5304(h) of such title): Provided further, That effective on the date of the enactment of this Act,

any amount made available under this heading under the Legislative Branch Appropriations Act, 2000, shall be available for such

position at such rate of compensation.

CAPITOL GROUNDS

For all necessary expenses for care and improvement of grounds

surrounding the Capitol, the Senate and House office buildings, and

the Capitol Power Plant, $5,362,000, of which $125,000 shall remain available until expended.

SENATE OFFICE BUILDINGS

For all necessary expenses for the maintenance, care and operation of Senate office buildings; and furniture and furnishings to be

expended under the control and supervision of the Architect of the

Capitol, $63,974,000, of which $21,669,000 shall remain available

until expended.

HOUSE OFFICE BUILDINGS

For all necessary expenses for the maintenance, care and operation of the House office buildings, $32,750,000, of which $123,000

shall remain available until expended.

CAPITOL POWER PLANT

For all necessary expenses for the maintenance, care and operation of the Capitol Power Plant; lighting, heating, power (including

the purchase of electrical energy) and water and sewer services for

the Capitol, Senate and House office buildings, Library of Congress

buildings, and the grounds about the same, Botanic Garden, Senate

garage, and air conditioning refrigeration not supplied from plants

in any of such buildings; heating the Government Printing Office

and Washington City Post Office, and heating and chilled water for

air conditioning for the Supreme Court Building, the Union Station

complex, the Thurgood Marshall Federal Judiciary Building and

the Folger Shakespeare Library, expenses for which shall be advanced or reimbursed upon request of the Architect of the Capitol

and amounts so received shall be deposited into the Treasury to the

credit of this appropriation, $39,415,000, of which $523,000 shall

remain available until expended: Provided, That not more than

$4,400,000 of the funds credited or to be reimbursed to this appropriation as herein provided shall be available for obligation during

fiscal year 2001.

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LIBRARY OF CONGRESS

CONGRESSIONAL RESEARCH SERVICE

SALARIES AND EXPENSES

For necessary expenses to carry out the provisions of section 203

of the Legislative Reorganization Act of 1946 (2 U.S.C. 166) and to

revise and extend the Annotated Constitution of the United States

of America, $73,592,000: Provided, That no part of such amount

may be used to pay any salary or expense in connection with any

publication, or preparation of material therefor (except the Digest of

Public General Bills), to be issued by the Library of Congress unless

such publication has obtained prior approval of either the Committee on House Administration of the House of Representatives or

the Committee on Rules and Administration of the Senate.

GOVERNMENT PRINTING OFFICE

CONGRESSIONAL PRINTING AND BINDING

(INCLUDING TRANSFER OF FUNDS)

For authorized printing and binding for the Congress and the

distribution of Congressional information in any format; printing

and binding for the Architect of the Capitol; expenses necessary for

preparing the semimonthly and session index to the Congressional

Record, as authorized by law (44 U.S.C. 902); printing and binding

of Government publications authorized by law to be distributed to

Members of Congress; and printing, binding, and distribution of

Government publications authorized by law to be distributed without charge to the recipient, $71,462,000: Provided, That this appropriation shall not be available for paper copies of the permanent

edition of the Congressional Record for individual Representatives,

Resident Commissioners or Delegates authorized under 44 U.S.C.

906: Provided further, That this appropriation shall be available for

the payment of obligations incurred under the appropriations for

similar purposes for preceding fiscal years: Provided further, That

notwithstanding the 2-year limitation under section 718 of title 44,

United States Code, none of the funds appropriated or made available under this Act or any other Act for printing and binding and

related services provided to Congress under chapter 7 of title 44,

United States Code, may be expended to print a document, report,

or publication after the 27-month period beginning on the date that

such document, report, or publication is authorized by Congress to

be printed, unless Congress reauthorizes such printing in accordance with section 718 of title 44, United States Code: Provided further, That any unobligated or unexpended balances in this account

or accounts for similar purposes for preceding fiscal years may be

transferred to the Government Printing Office revolving fund for

carrying out the purposes of this heading, subject to the approval

of the Committees on Appropriations of the House of Representatives

and Senate.

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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 mediabased publications for House uses.

(2) SUBMISSION TO COMMITTEES.—The Clerk shall submit

the study conducted under paragraph (1) to the Committee on

House Administration of the House of Representatives, who

shall review the study and prepare such regulations or other

materials (including proposals for legislation) as it considers

appropriate to enable the Clerk to carry out congressional printing and binding services for the House in accordance with this

section.

(c) DEFINITION.—In this section, the term ‘‘congressional printing and binding services’’ means the following services:

(1) Authorized printing and binding for the Congress and

the distribution of congressional information in any format.

(2) Preparing the semimonthly and session index to the

Congressional Record.

(3) Printing and binding of Government publications authorized by law to be distributed to Members of Congress.

(4) Printing, binding, and distribution of Government publications authorized by law to be distributed without charge to

the recipient.

This title may be cited as the ‘‘Congressional Operations Appropriations Act, 2001’’.

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TITLE II—OTHER AGENCIES

BOTANIC GARDEN

SALARIES AND EXPENSES

For all necessary expenses for the maintenance, care and operation of the Botanic Garden and the nurseries, buildings, grounds,

and collections; and purchase and exchange, maintenance, repair,

and operation of a passenger motor vehicle; all under the direction

of the Joint Committee on the Library, $3,328,000, of which $25,000

shall remain available until expended.

LIBRARY OF CONGRESS

SALARIES AND EXPENSES

For necessary expenses of the Library of Congress not otherwise

provided for, including development and maintenance of the Union

Catalogs; custody and custodial care of the Library buildings; special clothing; cleaning, laundering and repair of uniforms; preservation of motion pictures in the custody of the Library; operation and

maintenance of the American Folklife Center in the Library; preparation and distribution of catalog records and other publications of

the Library; hire or purchase of one passenger motor vehicle; and

expenses of the Library of Congress Trust Fund Board not properly

chargeable to the income of any trust fund held by the Board,

$282,838,000, of which not more than $6,500,000 shall be derived

from collections credited to this appropriation during fiscal year

2001, and shall remain available until expended, under the Act of

June 28, 1902 (chapter 1301; 32 Stat. 480; 2 U.S.C. 150) and not

more than $350,000 shall be derived from collections during fiscal

year 2001 and shall remain available until expended for the development and maintenance of an international legal information

database and activities related thereto: Provided, That the Library

of Congress may not obligate or expend any funds derived from collections under the Act of June 28, 1902, in excess of the amount authorized for obligation or expenditure in appropriations Acts: Provided further, That the total amount available for obligation shall

be reduced by the amount by which collections are less than the

$6,850,000: Provided further, That of the total amount appropriated, $10,459,575 is to remain available until expended for acquisition of books, periodicals, newspapers, and all other materials

including subscriptions for bibliographic services for the Library,

including $40,000 to be available solely for the purchase, when specifically approved by the Librarian, of special and unique materials

for additions to the collections: Provided further, That of the total

amount appropriated, $2,506,000 is to remain available until expended for the acquisition and partial support for implementation

of an Integrated Library System (ILS): Provided further, That of the

total amount appropriated, $10,000,000 is to remain available until

expended for salaries and expenses to carry out the Russian Leadership Program enacted on May 21, 1999 (113 Stat. 93 et seq.): Provided further, That of the total amount appropriated, $5,957,800 is

to remain available until expended for the purpose of teaching educators how to incorporate the Library’s digital collections into school

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curricula, which amount shall be transferred to the educational consortium formed to conduct the ‘‘Joining Hands Across America:

Local Community Initiative’’ project as approved by the Library:

Provided further, That of the total amount appropriated, $404,000

is to remain available until expended for a collaborative digitization

and telecommunications project with the United States Military

Academy and any remaining balance is available for other Library

purposes: Provided further, That of the total amount appropriated,

$4,300,000 is to remain available until expended for the purpose of

developing a high speed data transmission between the Library of

Congress and educational facilities, libraries, or networks serving

western North Carolina, and any remaining balance is available for

support of the Library’s Digital Futures initiative.

COPYRIGHT OFFICE

SALARIES AND EXPENSES

For necessary expenses of the Copyright Office, $38,523,000, of

which not more than $23,500,000, to remain available until expended, shall be derived from collections credited to this appropriation during fiscal year 2001 under 17 U.S.C. 708(d): Provided, That

the Copyright Office may not obligate or expend any funds derived

from collections under 17 U.S.C. 708(d), in excess of the amount authorized for obligation or expenditure in appropriations Acts: Provided further, That not more than $5,783,000 shall be derived from

collections during fiscal year 2001 under 17 U.S.C. 111(d)(2),

119(b)(2), 802(h), and 1005: Provided further, That the total amount

available for obligation shall be reduced by the amount by which

collections are less than $29,283,000: Provided further, That not

more than $100,000 of the amount appropriated is available for the

maintenance of an ‘‘International Copyright Institute’’ in the Copyright Office of the Library of Congress for the purpose of training

nationals of developing countries in intellectual property laws and

policies: Provided further, That not more than $4,250 may be expended, on the certification of the Librarian of Congress, in connection with official representation and reception expenses for activities

of the International Copyright Institute and for copyright delegations, visitors, and seminars.

BOOKS FOR THE BLIND AND PHYSICALLY HANDICAPPED

SALARIES AND EXPENSES

For salaries and expenses to carry out the Act of March 3, 1931

(chapter 400; 46 Stat. 1487; 2 U.S.C. 135a), $48,609,000, of which

$14,154,000 shall remain available until expended.

FURNITURE AND FURNISHINGS

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

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ADMINISTRATIVE PROVISIONS

SEC. 201. Appropriations in this Act available to the Library of

Congress shall be available, in an amount of not more than

$199,630, of which $59,300 is for the Congressional Research Service, when specifically authorized by the Librarian of Congress, for

attendance at meetings concerned with the function or activity for

which the appropriation is made.

SEC. 202. (a) No part of the funds appropriated in this Act

shall be used by the Library of Congress to administer any flexible

or compressed work schedule which—

(1) applies to any manager or supervisor in a position the

grade or level of which is equal to or higher than GS–15; and

(2) grants such manager or supervisor the right to not be

at work for all or a portion of a workday because of time

worked by the manager or supervisor on another workday.

(b) For purposes of this section, the term ‘‘manager or supervisor’’ means any management official or supervisor, as such terms

are defined in section 7103(a)(10) and (11) of title 5, United States

Code.

SEC. 203. Appropriated funds received by the Library of Congress from other Federal agencies to cover general and administrative overhead costs generated by performing reimbursable work for

other agencies under the authority of sections 1535 and 1536 of title

31, United States Code, shall not be used to employ more than 65

employees and may be expended or obligated—

(1) in the case of a reimbursement, only to such extent or

in such amounts as are provided in appropriations Acts; or

(2) in the case of an advance payment, only—

(A) to pay for such general or administrative overhead

costs as are attributable to the work performed for such

agency; or

(B) to such extent or in such amounts as are provided

in appropriations Acts, with respect to any purpose not allowable under subparagraph (A).

SEC. 204. Of the amounts appropriated to the Library of Congress in this Act, not more than $5,000 may be expended, on the certification of the Librarian of Congress, in connection with official

representation and reception expenses for the incentive awards program.

SEC. 205. Of the amount appropriated to the Library of Congress in this Act, not more than $12,000 may be expended, on the

certification of the Librarian of Congress, in connection with official

representation and reception expenses for the Overseas Field Offices.

SEC. 206. (a) For fiscal year 2001, the obligational authority of

the Library of Congress for the activities described in subsection (b)

may not exceed $92,845,000.

(b) The activities referred to in subsection (a) are reimbursable

and revolving fund activities that are funded from sources other

than appropriations to the Library in appropriations Acts for the

legislative branch.

SEC. 207. Section 1 of the Act entitled ‘‘An Act to authorize acquisition of certain real property for the Library of Congress, and

310

for other purposes’’, approved December 15, 1997 (2 U.S.C. 141 note)

is amended by adding at the end the following new subsection:

‘‘(c) TRANSFER PAYMENT BY ARCHITECT.—Notwithstanding the

limitation on reimbursement or transfer of funds under subsection

(a) of this section, the Architect of the Capitol may, not later than

90 days after acquisition of the property under this section, transfer

funds to the entity from which the property was acquired by the Architect of the Capitol. Such transfers may not exceed a total of

$16,500,000.’’.

SEC. 208. The Librarian of Congress may convert to permanent

positions 84 indefinite, time-limited positions in the National Digital Library Program authorized in the Legislative Branch Appropriations Act, 1996 for the Library of Congress under the heading,

‘‘Salaries and Expenses’’ (Public Law 104–53). Notwithstanding any

other provision of law regarding qualifications and methods of appointment of employees of the Library of Congress, the Librarian

may fill these permanent positions through the non-competitive conversion of the incumbents in the ‘‘indefinite-not-to-exceed’’ positions

to ‘‘permanent’’ positions.

SEC. 209. (a) In addition to any other transfer authority provided by law, during fiscal year 2001 and fiscal years thereafter, the

Librarian of Congress may transfer to and among available accounts of the Library of Congress amounts appropriated to the Librarian from funds for the purchase, installation, maintenance, and

repair of furniture, furnishings, and office and library equipment.

(b) Any amounts transferred pursuant to subsection (a) shall be

merged with and be available for the same purpose and for the

same period as the appropriation or account to which such amounts

are transferred.

(c) The Librarian may transfer amounts pursuant to subsection

(a) only with the approval of the Committees on Appropriations of

the House of Representatives and Senate.

SEC. 210. (a)(1) This subsection shall apply to any individual

who—

(A) is employed by the Library of Congress Child Development Center (known as the ‘‘Little Scholars Child Development

Center’’, in this section referred to as the ‘‘Center’’) established

under section 205(g)(1) of the Legislative Branch Appropriations Act, 1991; and

(B) makes an election to be covered by this subsection with

the Librarian of Congress, not later than the later of—

(i) 60 days after the date of enactment of this Act; or

(ii) 60 days after the date the individual begins such

employment.

(2)(A) Any individual described under paragraph (1) may be

credited, under section 8411 of title 5, United States Code, for service as an employee of the Center before the date of enactment of this

Act, if such employee makes a payment of the deposit under section

8411(f )(2) of such title without application of section 8411(b)(3) of

such title.

(B) An individual described under paragraph (1) shall be credited under section 8411 of title 5, United States Code, for any service as an employee of the Center on or after the date of enactment

of this Act, if such employee has such amounts deducted and withVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00314 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.002 pfrm03 PsN: HR1033
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held from his pay as determined by the Office of Personnel Management which would be deducted and withheld from the basic pay of

an employee under section 8422 of title 5, United States Code.

(3) Notwithstanding any other provision of this subsection, any

service performed by an individual described under paragraph (1)

as an employee of the Center is deemed to be civilian service creditable under section 8411 of title 5, United States Code, for purposes

of qualifying for survivor annuities and disability benefits under

subchapters IV and V of chapter 84 of such title, if such individual

makes payment of an amount, determined by the Office of Personnel

Management, which would have been deducted and withheld from

the basic pay of such individual if such individual had been an employee subject to section 8422 of title 5, United States Code, for such

period so credited, together with interest thereon.

(4) An individual described under paragraph (1) shall be

deemed an employee for purposes of chapter 84 of title 5, United

States Code, including subchapter III of such title, and may make

contributions under section 8432 of such title effective for the first

applicable pay period beginning on or after the date such individual

elects coverage under this section.

(5) The Office of Personnel Management shall accept the certification of the Librarian of Congress concerning creditable service for

purposes of this subsection.

(b) Any individual who is employed by the Center on or after

the date of enactment of this Act shall be deemed an employee under

section 8901(1) of title 5, United States Code, for purposes of health

insurance coverage under chapter 89 of such title. An individual

who is an employee of the Center on the date of enactment of this

Act may elect coverage under this subsection before the 60th day

after the date of enactment of this Act, and during such periods as

determined by the Office of Personnel Management for employees of

the Center employed after such date.

(c) An individual who is employed by the Center shall be

deemed an employee under section 8701(a) of title 5, United States

Code, for purposes of life insurance coverage under chapter 87 of

such title.

(d) Government contributions for individuals receiving benefits

under this section, as computed under sections 8423, 8432, 8708,

and 8906 shall be made by the Librarian of Congress from any appropriations available to the Library of Congress.

(e) The Library of Congress, directly or by agreement with its

designated representative, shall—

(1) process payroll for Center employees, including making

deductions and withholdings from the pay of employees in the

amounts determined under sections 8422, 8432, 8707, and 8905

of title 5, United States Code;

(2) maintain appropriate personnel and payroll records for

Center employees, and transmit appropriate information and

records to the Office of Personnel Management; and

(3) transmit funds for Government and employee contributions under this section to the Office of Personnel Management.

(f ) The Center shall—

(1) pay to the Library of Congress funds sufficient to cover

the gross salary and the employer’s share of taxes under section

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3111 of the Internal Revenue Code of 1986 for Center employees, in amounts computed by the Library of Congress;

(2) as required by the Library of Congress, reimburse the

Library of Congress for reasonable administrative costs incurred under subsection (e)(1);

(3) comply with regulations and procedures prescribed by

the Librarian of Congress for administration of this section;

(4) maintain appropriate records on all Center employees,

as required by the Librarian of Congress; and

(5) consult with the Librarian of Congress on the administration and implementation of this section.

(g) The Librarian of Congress may prescribe regulations to

carry out this section.

ARCHITECT OF THE CAPITOL

LIBRARY BUILDINGS AND GROUNDS

STRUCTURAL AND MECHANICAL CARE

For all necessary expenses for the mechanical and structural

maintenance, care and operation of the Library buildings and

grounds, $15,970,000, of which $5,000,000 shall remain available

until expended.

GOVERNMENT PRINTING OFFICE

OFFICE OF SUPERINTENDENT OF DOCUMENTS

SALARIES AND EXPENSES

(INCLUDING TRANSFER OF FUNDS)

For expenses of the Office of Superintendent of Documents necessary to provide for the cataloging and indexing of Government

publications and their distribution to the public, Members of Congress, other Government agencies, and designated depository and

international exchange libraries as authorized by law, $27,954,000:

Provided, That travel expenses, including travel expenses of the Depository Library Council to the Public Printer, shall not exceed

$175,000: Provided further, That amounts of not more than

$2,000,000 from current year appropriations are authorized for producing and disseminating Congressional serial sets and other related publications for 1999 and 2000 to depository and other designated libraries: Provided further, That any unobligated or unexpended balances in this account or accounts for similar purposes for

preceding fiscal years may be transferred to the Government Printing Office revolving fund for carrying out the purposes of this heading, subject to the approval of the Committees on Appropriations of

the House of Representatives and Senate.

GOVERNMENT PRINTING OFFICE REVOLVING FUND

The Government Printing Office is hereby authorized to make

such expenditures, within the limits of funds available and in accord with the law, and to make such contracts and commitments

without regard to fiscal year limitations as provided by section 9104

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of title 31, United States Code, as may be necessary in carrying out

the programs and purposes set forth in the budget for the current

fiscal year for the Government Printing Office revolving fund: Provided, That not more than $2,500 may be expended on the certification of the Public Printer in connection with official representation and reception expenses: Provided further, That the revolving

fund shall be available for the hire or purchase of not more than

12 passenger motor vehicles: Provided further, That expenditures in

connection with travel expenses of the advisory councils to the Public Printer shall be deemed necessary to carry out the provisions of

title 44, United States Code: Provided further, That the revolving

fund shall be available for temporary or intermittent services under

section 3109(b) of title 5, United States Code, but at rates for individuals not more than the daily equivalent of the annual rate of

basic pay for level V of the Executive Schedule under section 5316

of such title: Provided further, That the revolving fund and the

funds provided under the headings ‘‘OFFICE OF SUPERINTENDENT

OF DOCUMENTS’’ and ‘‘SALARIES AND EXPENSES’’ together may not be

available for the full-time equivalent employment of more than

3,285 workyears (or such other number of workyears as the Public

Printer may request, subject to the approval of the Committees on

Appropriations of the Senate and the House of Representatives):

Provided further, That activities financed through the revolving

fund may provide information in any format: Provided further,

That the revolving fund shall not be used to administer any flexible

or compressed work schedule which applies to any manager or supervisor in a position the grade or level of which is equal to or higher than GS–15: Provided further, That expenses for attendance at

meetings shall not exceed $75,000.

GENERAL ACCOUNTING OFFICE

SALARIES AND EXPENSES

For necessary expenses of the General Accounting Office, including not more than $10,000 to be expended on the certification of the

Comptroller General of the United States in connection with official

representation and reception expenses; temporary or intermittent

services under section 3109(b) of title 5, United States Code, but at

rates for individuals not more than the daily equivalent of the annual rate of basic pay for level IV of the Executive Schedule under

section 5315 of such title; hire of one passenger motor vehicle; advance payments in foreign countries in accordance with section 3324

of title 31, United States Code; benefits comparable to those payable

under sections 901(5), 901(6), and 901(8) of the Foreign Service Act

of 1980 (22 U.S.C. 4081(5), 4081(6), and 4081(8)); and under regulations prescribed by the Comptroller General of the United States,

rental of living quarters in foreign countries, $384,867,000: Provided, That not more than $1,900,000 of payments received under

31 U.S.C. 782 shall be available for use in fiscal year 2001: Provided further, That not more than $1,100,000 of reimbursements received under 31 U.S.C. 9105 shall be available for use in fiscal year

2001: Provided further, That this appropriation and appropriations

for administrative expenses of any other department or agency

which is a member of the National Intergovernmental Audit Forum

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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 nonFederal participants. Payments hereunder to the Forum may be

credited as reimbursements to any appropriation from which costs

involved are initially financed: Provided further, That this appropriation and appropriations for administrative expenses of any

other department or agency which is a member of the American

Consortium on International Public Administration (ACIPA) shall

be available to finance an appropriate share of ACIPA costs as determined by the ACIPA, including any expenses attributable to

membership of ACIPA in the International Institute of Administrative Sciences.

TITLE III—GENERAL PROVISIONS

SEC. 301. No part of the funds appropriated in this Act shall

be used for the maintenance or care of private vehicles, except for

emergency assistance and cleaning as may be provided under regulations relating to parking facilities for the House of Representatives

issued by the Committee on House Administration and for the Senate issued by the Committee on Rules and Administration.

SEC. 302. No part of the funds appropriated in this Act shall

remain available for obligation beyond fiscal year 2001 unless expressly so provided in this Act.

SEC. 303. Whenever in this Act any office or position not specifically established by the Legislative Pay Act of 1929 is appropriated

for or the rate of compensation or designation of any office or position appropriated for is different from that specifically established

by such Act, the rate of compensation and the designation in this

Act shall be the permanent law with respect thereto: Provided, That

the provisions in this Act for the various items of official expenses

of Members, officers, and committees of the Senate and House of

Representatives, and clerk hire for Senators and Members of the

House of Representatives shall be the permanent law with respect

thereto.

SEC. 304. The expenditure of any appropriation under this Act

for any consulting service through procurement contract, pursuant

to section 3109 of title 5, United States Code, shall be limited to

those contracts where such expenditures are a matter of public

record and available for public inspection, except where otherwise

provided under existing law, or under existing Executive order

issued pursuant to existing law.

SEC. 305. (a) It is the sense of the Congress that, to the greatest

extent practicable, all equipment and products purchased with

funds made available in this Act should be American-made.

(b) In providing financial assistance to, or entering into any

contract with, any entity using funds made available in this Act, the

head of each Federal agency, to the greatest extent practicable, shall

provide to such entity a notice describing the statement made in

subsection (a) by the Congress.

(c) If it has been finally determined by a court or Federal agency that any person intentionally affixed a label bearing a ‘‘Made in

America’’ inscription, or any inscription with the same meaning, to

any product sold in or shipped to the United States that is not made

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in the United States, such person shall be ineligible to receive any

contract or subcontract made with funds provided pursuant to this

Act, pursuant to the debarment, suspension, and ineligibility procedures described in section 9.400 through 9.409 of title 48, Code of

Federal Regulations.

SEC. 306. Such sums as may be necessary are appropriated to

the account described in subsection (a) of section 415 of Public Law

104–1 to pay awards and settlements as authorized under such subsection.

SEC. 307. Amounts available for administrative expenses of any

legislative branch entity which participates in the Legislative

Branch Financial Managers Council (LBFMC) established by charter on March 26, 1996, shall be available to finance an appropriate

share of LBFMC costs as determined by the LBFMC, except that the

total LBFMC costs to be shared among all participating legislative

branch entities (in such allocations among the entities as the entities

may determine) may not exceed $252,000.

SEC. 308. No part of any appropriation contained in this Act

under the heading ‘‘Architect of the Capitol’’ or ‘‘Botanic Garden’’

shall be obligated or expended for a construction contract in excess

of $100,000, unless such contract includes a provision that requires

liquidated damages for contractor caused delay in an amount commensurate with the daily net usable square foot cost of leasing similar space in a first class office building within two miles of the

United States Capitol multiplied by the square footage to be constructed under the contract.

SEC. 309. Section 316 of Public Law 101–302 is amended in the

first sentence of subsection (a) by striking ‘‘2000’’ and inserting

‘‘2001’’.

SEC. 310. RUSSIAN LEADERSHIP PROGRAM. Section 3011 of the

1999 Emergency Supplemental Appropriations Act (Public Law

106–31; 113 Stat. 93) is amended—

(1) by striking ‘‘fiscal years 1999 and 2000’’ in subsections

(a)(1), (b)(4)(B), (d)(3), and (h)(1)(A) and inserting ‘‘fiscal years

2000 and 2001’’; and

(2) by striking ‘‘2001’’ in subsection (a)(2), (e)(1), and

(h)(1)(B) and inserting ‘‘2002’’.

SEC. 311. (a)(1) Any State may request the Joint Committee on

the Library of Congress to approve the replacement of a statue the

State has provided for display in Statuary Hall in the Capitol of the

United States under section 1814 of the Revised Statutes (40 U.S.C.

187).

(2) A request shall be considered under paragraph (1) only if—

(A) the request has been approved by a resolution adopted

by the legislature of the State and the request has been approved by the Governor of the State, and

(B) the statue to be replaced has been displayed in the Capitol of the United States for at least 10 years as of the time the

request is made, except that the Joint Committee may waive

this requirement for cause at the request of a State.

(b) If the Joint Committee on the Library of Congress approves

a request under subsection (a), the Architect of the Capitol shall

enter into an agreement with the State to carry out the replacement

in accordance with the request and any conditions the Joint ComVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00319 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.002 pfrm03 PsN: HR1033
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mittee may require for its approval. Such agreement shall provide

that—

(1) the new statue shall be subject to the same conditions

and restrictions as apply to any statue provided by a State

under section 1814 of the Revised Statutes (40 U.S.C. 187), and

(2) the State shall pay any costs related to the replacement,

including costs in connection with the design, construction,

transportation, and placement of the new statue, the removal

and transportation of the statue being replaced, and any unveiling ceremony.

(c) Nothing in this section shall be interpreted to permit a State

to have more than 2 statues on display in the Capitol of the United

States.

(d)(1) Subject to the approval of the Joint Committee on the Library, ownership of any statue replaced under this section shall be

transferred to the State.

(2) If any statue is removed from the Capitol of the United

States as part of a transfer of ownership under paragraph (1), then

it may not be returned to the Capitol for display unless such display

is specifically authorized by Federal law.

(e) The Architect of the Capitol, upon the approval of the Joint

Committee on the Library and with the advice of the Commission

of Fine Arts as requested, is authorized and directed to relocate

within the United States Capitol any of the statues received from

the States under section 1814 of the Revised Statutes (40 U.S.C.

187) prior to the date of the enactment of this Act, and to provide

for the reception, location, and relocation of the statues received

hereafter from the States under such section.

SEC. 312. (a) Section 201 of the Legislative Branch Appropriations Act, 1993 (40 U.S.C. 216c note) is amended by striking

‘‘$10,000,000’’ each place it appears and inserting ‘‘$14,500,000’’.

(b) Section 201 of such Act is amended—

(1) by inserting ‘‘(a)’’ before ‘‘Pursuant’’, and

(2) by adding at the end the following:

‘‘(b) The Architect of the Capitol is authorized to solicit, receive,

accept, and hold amounts under section 307E(a)(2) of the Legislative Branch Appropriations Act, 1989 (40 U.S.C. 216c(a)(2)) in excess of the $14,500,000 authorized under subsection (a), but such

amounts (and any interest thereon) shall not be expended by the Architect without approval in appropriation Acts as required under

section 307E(b)(3) of such Act (40 U.S.C. 216c(b)(3)).’’.

SEC. 313. CENTER FOR RUSSIAN LEADERSHIP DEVELOPMENT. (a)

ESTABLISHMENT.—

(1) IN GENERAL.—There is established in the legislative

branch of the Government a center to be known as the ‘‘Center

for Russian Leadership Development’’ (the ‘‘Center’’).

(2) BOARD OF TRUSTEES.—The Center shall be subject to the

supervision and direction of a Board of Trustees which shall be

composed of 9 members as follows:

(A) 2 members appointed by the Speaker of the House

of Representatives, 1 of whom shall be designated by the

Majority Leader of the House of Representatives and 1 of

whom shall be designated by the Minority Leader of the

House of Representatives.

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(B) 2 members appointed by the President pro tempore

of the Senate, 1 of whom shall be designated by the Majority Leader of the Senate and 1 of whom shall be designated

by the Minority Leader of the Senate.

(C) The Librarian of Congress.

(D) 4 private individuals with interests in improving

United States and Russian relations, designated by the Librarian of Congress.

Each member appointed under this paragraph shall serve for a

term of 3 years. Any vacancy shall be filled in the same manner

as the original appointment and the individual so appointed

shall serve for the remainder of the term. Members of the Board

shall serve without pay, but shall be entitled to reimbursement

for travel, subsistence, and other necessary expenses incurred in

the performance of their duties.

(b) PURPOSE AND AUTHORITY OF THE CENTER.—

(1) PURPOSE.—The purpose of the Center is to establish, in

accordance with the provisions of paragraph (2), a program to

enable emerging political leaders of Russia at all levels of government to gain significant, firsthand exposure to the American

free market economic system and the operation of American

democratic institutions through visits to governments and communities at comparable levels in the United States.

(2) GRANT PROGRAM.—Subject to the provisions of paragraphs (3) and (4), the Center shall establish a program under

which the Center annually awards grants to government or

community organizations in the United States that seek to establish programs under which those organizations will host

Russian nationals who are emerging political leaders at any

level of government.

(3) RESTRICTIONS.—

(A) DURATION.—The period of stay in the United States

for any individual supported with grant funds under the

program shall not exceed 30 days.

(B) LIMITATION.—The number of individuals supported

with grant funds under the program shall not exceed 3,000

in any fiscal year.

(C) USE OF FUNDS.—Grant funds under the program

shall be used to pay—

(i) the costs and expenses incurred by each program participant in traveling between Russia and the

United States and in traveling within the United

States;

(ii) the costs of providing lodging in the United

States to each program participant, whether in public

accommodations or in private homes; and

(iii) such additional administrative expenses incurred by organizations in carrying out the program as

the Center may prescribe.

(4) APPLICATION.—

(A) IN GENERAL.—Each organization in the United

States desiring a grant under this section shall submit an

application to the Center at such time, in such manner,

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and accompanied by such information as the Center may

reasonably require.

(B) CONTENTS.—Each application submitted pursuant

to subparagraph (A) shall—

(i) describe the activities for which assistance

under this section is sought;

(ii) include the number of program participants to

be supported;

(iii) describe the qualifications of the individuals

who will be participating in the program; and

(iv) provide such additional assurances as the Center determines to be essential to ensure compliance with

the requirements of this section.

(c) ESTABLISHMENT OF FUND.—

(1) IN GENERAL.—There is established in the Treasury of

the United States a trust fund to be known as the ‘‘Russian

Leadership Development Center Trust Fund’’ (the ‘‘Fund’’)

which shall consist of amounts which may be appropriated,

credited, or transferred to it under this section.

(2) DONATIONS.—Any money or other property donated, bequeathed, or devised to the Center under the authority of this

section shall be credited to the Fund.

(3) FUND MANAGEMENT.—

(A) IN GENERAL.—The provisions of subsections (b), (c),

and (d) of section 116 of the Legislative Branch Appropriations Act, 1989 (2 U.S.C. 1105 (b), (c), and (d)), and the

provisions of section 117(b) of such Act (2 U.S.C. 1106(b)),

shall apply to the Fund.

(B) EXPENDITURES.—The Secretary of the Treasury is

authorized to pay to the Center from amounts in the Fund

such sums as the Board of Trustees of the Center determines are necessary and appropriate to enable the Center

to carry out the provisions of this section.

(d) EXECUTIVE DIRECTOR.—The Board shall appoint an Executive Director who shall be the chief executive officer of the Center

and who shall carry out the functions of the Center subject to the

supervision and direction of the Board of Trustees. The Executive

Director of the Center shall be compensated at the annual rate specified by the Board, but in no event shall such rate exceed level III

of the Executive Schedule under section 5314 of title 5, United

States Code.

(e) ADMINISTRATIVE PROVISIONS.—

(1) IN GENERAL.—The provisions of section 119 of the Legislative Branch Appropriations Act, 1989 (2 U.S.C. 1108) shall

apply to the Center.

(2) SUPPORT PROVIDED BY LIBRARY OF CONGRESS.—The Library of Congress may disburse funds appropriated to the Center, compute and disburse the basic pay for all personnel of the

Center, provide administrative, legal, financial management,

and other appropriate services to the Center, and collect from

the Fund the full costs of providing services under this paragraph, as provided under an agreement for services ordered

under sections 1535 and 1536 of title 31, United States Code.

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(f ) AUTHORIZATION OF APPROPRIATIONS.—There are authorized

to be appropriated such sums as may be necessary to carry out this

section.

(g) TRANSFER OF FUNDS.—Any amounts appropriated for use in

the program established under section 3011 of the 1999 Emergency

Supplemental Appropriations Act (Public Law 106–31; 113 Stat. 93)

shall be transferred to the Fund and shall remain available without

fiscal year limitation.

(h) EFFECTIVE DATES.—

(1) IN GENERAL.—This section shall take effect on the date

of enactment of this Act.

(2) TRANSFER.—Subsection (g) shall only apply to amounts

which remain unexpended on and after the date the Board of

Trustees of the Center certifies to the Librarian of Congress that

grants are ready to be made under the program established

under this section.

SEC. 314. REVIEW OF PROPOSED CHANGES TO EXPORT THRESHOLDS FOR COMPUTERS. Not more than 50 days after the date of the

submission of the report referred to in subsection (d) of section 1211

of the National Defense Authorization Act for Fiscal Year 1998 (50

U.S.C. App. 2404 note), the Comptroller General of the United

States shall submit an assessment to Congress which contains an

analysis of the new computer performance levels being proposed by

the President under such section.

TITLE IV—EMERGENCY FISCAL YEAR 2000 SUPPLEMENTAL

APPROPRIATIONS

The following sums are appropriated out of any money in the

Treasury not otherwise appropriated, to provide additional emergency supplemental appropriations for the Legislative Branch for

the fiscal year ending September 30, 2000, and for other purposes,

namely:

CAPITOL POLICE BOARD

SECURITY ENHANCEMENTS

For an additional amount for the Capitol Police Board for costs

associated with security enhancements, under the terms and conditions of chapter 5 of title II of division B of the Omnibus Consolidated and Emergency Supplemental Appropriations Act, 1999 (Public Law 105–277), $2,102,000, to remain available until expended,

of which—

(1) $228,000 shall be for the acquisition and installation of

card readers for 4 additional access points which are not currently funded under the implementation of the security enhancement plan; and

(2) $1,874,000 shall be for security enhancements to the

buildings and grounds of the Library of Congress:

Provided, That the entire amount is designated by Congress as an

emergency requirement pursuant to section 251(b)(2)(A) of the Balanced Budget and Emergency Deficit Control Act of 1985, as

amended: Provided further, That the entire amount shall be available only to the extent an official budget request for a specific dollar

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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’’.

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LEGISLATIVE BRANCH APPROPRIATIONS

Following is explanatory language on H.R. 5657, as introduced

on December 14, 2000.

The conferees on H.R. 4577 agree with the matter included in

H.R. 5657 and enacted in this conference report by reference and

the following description. This bill was developed through negotiations by conferees on the differences in H.R. 4516. References in

the following description to the ‘‘conference agreement’’ mean the

matter included in the introduced bill enacted by this conference

report. References to the House bill mean the House passed version

of H.R. 4516. References to the Senate bill or Senate amendment

mean the Senate reported version of H.R. 4516.

LEGISLATIVE BRANCH APPROPRIATIONS

Many items in both House and Senate Legislative Branch Appropriations bills are identical and are included in the conference

agreement without change. The conferees have endorsed statements or policy contained in the House and Senate reports accompanying the appropriations bills, unless amended or restated herein. The conferees have agreed to drop without prejudice the direction in the House report under the heading, Information Security,

subsumed under ‘‘LEGISLATIVE BRANCH WIDE MATTERS’’.

With respect to those items in the conference agreement that differ

between House and Senate bills, the conferees have agreed to the

following with the appropriate section numbers, punctuation, and

other technical corrections:

TITLE I—CONGRESSIONAL OPERATIONS

SENATE

Appropriates $506,797,300 for Senate operations, and includes,

at the request of the managers on the part of the Senate, an

amendment adding $250,000, an amendment containing the traditional death gratuity upon the death of a Senator, and an amendment to Section 8. Inasmuch as this item relates solely to the Senate, and in accord with long practice under which each body determines its own housekeeping requirements and the other concurs

without intervention, the managers on the part of the House, at

the request of the managers on the part of the Senate, have receded to the Senate.

HOUSE OF REPRESENTATIVES

At the request of the managers on the part of the House, an

enrollment error in the House bill has been corrected and an administrative provision has been added to provide funds for a special

education need. Inasmuch as this item relates solely to the House,

and in accord with long practice under which each body determines

its own housekeeping requirements and the other concurs without

intervention, the managers on the part of the Senate, at the request of the managers on the part of the House, have receded to

the House.

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JOINT ITEMS

JOINT COMMITTEE ON INAUGURAL CEREMONIES OF 2001

SALARIES AND EXPENSES

Appropriates $1,000,000 for the Joint Committee on Inaugural

Ceremonies of 2001 as proposed by the Senate, amending two

dates.

ADMINISTRATIVE PROVISION

The conferees have amended the administrative provision proposed by the House regarding assistance for the Capitol Police during the Inauguration in January 2001 and the 2001 joint session

of Congress to receive the State of the Union message.

JOINT ECONOMIC COMMITTEE

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

House.

JOINT COMMITTEE ON TAXATION

Appropriates $6,430,000 for the Joint Committee on Taxation instead of $6,174,000 as proposed by the House and $6,686,000 as

proposed by the Senate. The conferees believe that this level of

funding is sufficient for the Joint Committee on Taxation to complete its report on the overall state of the Federal tax system.

CAPITOL POLICE BOARD

CAPITOL POLICE

SALARIES

Appropriates $97,142,000 for salaries of officers, members, and employees of the Capitol Police instead of $92,769,000 as proposed

by the House and $102,700,000 as proposed by the Senate, of which

$47,053,000 is provided to the Sergeant at Arms of the House of

Representatives and $50,089,000 is provided to the Sergeant at

Arms and Doorkeeper of the Senate. Of the amount provided,

$4,660,000 is for overtime.

The conferees have agreed this will fund 1,481 FTE’s, the level

proposed by the Senate. The Chief of Police is directed to secure

the approval of the House and Senate Appropriations Committees

before filling positions above the level of 1,402 FTE’s. The conferees

intend that sufficient resources be allocated to implement the ‘‘two

officers per door’’ policy. The Police are directed to study the posting requirements of all posts and report to the House and Senate

Appropriations Committees. Until such a study is presented, the

police are authorized an FTE level of 1402.

GENERAL EXPENSES

Appropriates $6,772,000 for general expenses of the Capitol Police instead of $6,549,000 as proposed by the House and $6,884,000

as proposed by the Senate. The funds provide $103,000 for motorcycle replacement, and the conferees direct that the Capitol Police

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continue the program begun in FY 2000 to utilize American-made

motorcycles, targeting the funds made available in this agreement

towards smaller motorcycles. In addition, the conferees have not included reimbursement for telecommunications costs ($235,000) and

direct that these savings be applied to other programs. Items for

installation and maintenance of physical security and information

security measures shall not be less than the FY 2000 funded level.

ADMINISTRATIVE PROVISIONS

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

CAPITOL GUIDE SERVICE AND SPECIAL SERVICES OFFICE

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

as proposed by the House.

STATEMENTS OF APPROPRIATIONS

Appropriates $30,000 for statements of appropriations as proposed by the Senate instead of $29,000 as proposed by the House

and makes technical changes.

OFFICE OF COMPLIANCE

Appropriates $1,820,000 for the Office of Compliance instead of

$1,816,000 as proposed by the House and $2,066,000 as proposed

by the Senate. The conferees note that Office of Compliance telephones frequently are not answered during normal business hours.

As an agency providing service to employees and agencies of the

Legislative branch, the Executive Director should ensure that calls

to the Office of Compliance are answered during normal business

hours. In addition, the conferees believe the Executive Director

should examine the use of contract couriers to make deliveries to

Congressional offices and should reduce costs for such deliveries by

use of other means when appropriate.

CONGRESSIONAL BUDGET OFFICE

SALARIES AND EXPENSES

Establishes the limitation on funds for representation and reception expenses at $3,000 as proposed by the House instead of

$2,500 as proposed by the Senate and appropriates $28,493,000 for

salaries and expenses of the Congressional Budget Office instead of

$27,403,000 as proposed by the House and $27,113,000 as proposed

by the Senate.

The conferees have included an administrative provision, as

proposed by the Senate, authorizing the Congressional Budget Office to enter into multiple year contracts to the same extent as executive agencies.

324

ARCHITECT OF THE CAPITOL

CAPITOL BUILDINGS AND GROUNDS

CAPITOL BUILDINGS

SALARIES AND EXPENSES

Appropriates $43,689,000 for salaries and expenses, Capitol buildings, Architect of the Capitol, instead of $44,234,000 as proposed by the House and $44,191,000 as proposed by the Senate. Of

this amount, $3,843,000 shall remain available until expended instead of $4,280,000 as proposed by the House and $4,255,000 as

proposed by the Senate. With respect to object class and project differences between the House and Senate bills, the conferees have

agreed to the following:

Operating Budget: ................................................................................. $39,346,000

Capitol Projects:

1. Update electrical system drawings on CAD ........................ 70,000

2. CAD Mechanical database .................................................... 70,000

3. Conservation of wall paintings ............................................. 200,000

4. Study, confined spaces, Capitol Complex ............................. 0

5. Replacement on Minton tile .................................................. 100,000

6. Provide infrastructure for security installations ................. 400,000

7. Computer, telecommunications and electrical support ....... 300,000

8. Security project support for AOC ......................................... 0

9. Roof fall protection ................................................................. 555,000

10. Life safety support services ................................................... 0

11. Safety and environmental program and SOP development 0

12. Wayfinding and ADA compliant signage ............................. 50,000

13. Computer aided facility management .................................. 263,000

The conference agreement includes a provision authorizing the

Architect of the Capitol to hire a project manager for the construction of the Capitol Visitors Center and establishing a ceiling on the

level of pay for this position. The conferees direct the Architect to

fill this position from among persons recruited from outside the

agency. The language authorizing the position and funding for

same will require inclusion in annual appropriations bills and will

be withdrawn upon completion of the project.

The conferees have agreed to modify the Senate report language directing the Architect to create and fill a position for employee advocate. The conferees direct that the Architect fill the position of Employee Advocate on a one-year, temporary basis, using

existing resources, at a level appropriate to the task. In the submission of the FY 2002 budget request, the Architect is directed to

report on measures taken to fulfill directives in the Senate report

in lieu of the quarterly reports outlined in the Senate report regarding this position. The House and Senate Committees on Appropriations will review the results of this temporary measure before

considering a permanent solution.

The conferees are aware that the Architect of the Capitol employs a significant number of temporary workers (excluding intermittent workers) who do not receive the usual benefits available to

permanent federal workers. The Architect is directed to provide a

report within 90 days to the Senate Committees on Appropriations

and Rules and Administration, and to the House Committees on

Appropriations, Transportation and Infrastructure, and House Administration, both majority and minority, detailing its use of temVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00328 Fmt 6601 Sfmt 6601 E:\HR\OC\HR1033.002 pfrm03 PsN: HR1033
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porary workers, the terms and conditions thereof, and the reasons

therefor; the total number of such workers employed during each

of the last five fiscal years; and a list and explanation of the benefits, if any, such workers receive by reason of their AOC employment. The report shall make recommendations for how to provide

such workers access to federal benefits and a list of any alternatives that may exist to the use of temporary workers.

The conferees are concerned about a class-action suit against

the Architect (Harris et al. v. Architect of the Capitol). The Architect is urged to make every effort to settle this lawsuit as expeditiously as possible, and to report to the House and Senate Committees on Appropriations within 45 days on the status of the case.

CAPITOL GROUNDS

Appropriates $5,362,000 to the Architect of the Capitol for care

and improvement of grounds surrounding the Capitol, House and

Senate office buildings, and the Capitol power plant instead of

$5,217,000 as proposed by the House and $5,512,000 as proposed

by the Senate. Of this amount, $125,000 shall remain available

until expended instead of $25,000 as proposed by the House and

$225,000 as proposed by the Senate. With respect to object class

and project differences between the House and Senate bills, the

conferees have agreed to the following:

Operating Budget .................................................................................. $5,127,000

Capitol Projects:

1. CAD database development—site utilities ............................ 110,000

2. Wayfinding and ADA compliant signage ............................... 100,000

SENATE OFFICE BUILDINGS

Appropriates $63,974,000 to the Architect of the Capitol as pro- posed by the Senate, of which $21,669,000 shall remain available

until expended, for the operations of the Senate office buildings. Inasmuch as this item relates solely to the Senate, and in accord with

long practice under which each body determines its own housekeeping requirements and the other concurs without intervention,

the managers on the part of the House, at the request of the managers on the part of the Senate, have receded to the Senate.

HOUSE OFFICE BUILDINGS

Appropriates $32,750,000 to the Architect of the Capitol as pro- posed by the House, of which $123,000 shall remain available until

expended, for the operations of the House office buildings. Inasmuch as this item relates solely to the House, and in accord with

long practice under which each body determines its own housekeeping requirements and the other concurs without intervention,

the managers on the part of the Senate, at the request of the managers on the part of the House, have receded to the House.

CAPITOL POWER PLANT

In addition to the $4,400,000 available from receipts, appropriates $39,415,000 to the Architect of the Capitol for Capitol

power plant operations instead of $39,151,000 as proposed by the

House and $39,569,000 as proposed by the Senate. Of this amount,

$523,000 shall remain available until expended as proposed by the

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Senate instead of $200,000 as proposed by the House. With respect

to object class and project differences between the House and Senate bills, the conferees have agreed to the following:

Operating Budget:

1. Personnel compensation .......................................................... 4,467,000

2. Other expenses ......................................................................... 34,110,000

Capital Projects:

1. Study, heat balance/efficiency improvements ........................ 0

2. Update CAD drawings ............................................................. 65,000

3. Roof fall protection ................................................................... 323,000

LIBRARY OF CONGRESS

CONGRESSIONAL RESEARCH SERVICE

SALARIES AND EXPENSES

Appropriates $73,592,000 for salaries and expenses, Congres- sional Research Service, Library of Congress instead of $73,810,000

as proposed by the House and $73,374,000 as proposed by the Senate. In keeping with both the complete research and maximum

practicable administrative independence of the Congressional Research Service, it is the conferees’ intent that the Director of the

Congressional Research Service shall be obligated to bring to the

attention of the appropriate House and Senate Committees issues

which directly impact the Congressional Research Service and its

ability to serve the needs of Congress. The budgetary needs of CRS

that may not be adequately addressed in the annual budget submission should be raised with the Appropriations Committees.

GOVERNMENT PRINTING OFFICE

CONGRESSIONAL PRINTING AND BINDING

Appropriates $71,462,000 for Congressional printing and bind- ing instead of $69,626,000 as proposed by the House and

$73,297,000 as proposed by the Senate. The conference agreement

includes a heading and provision for transfer of balances for preceding fiscal years to the Government Printing Office revolving

fund as proposed by the House and language proposed by the Senate to provide for printing and binding for the Architect of the Capitol and for preparing the semimonthly and session indexes for the

Congressional Record.

Rather than limiting funding for the Congressional Record

Index and indexers to close out activities, as directed in the House

report, the conferees agree that this activity should continue and

that improvements in work processes should be pursued by taking

advantage of the latest available technology. These activities and

initiatives should be more closely integrated and coordinated with

related GPO functions and should be pursued under the direction

of the Public Printer or appropriate officials designated by the Public Printer.

ADMINISTRATIVE PROVISION

The conference agreement amends an administrative provision

proposed by the House regarding a study of Congressional printing

needs and authorization of appropriations beginning in fiscal year

327

2003 to limit its application to the Clerk of the House and the

printing needs of the House of Representatives.

TITLE II—OTHER AGENCIES

BOTANIC GARDEN

SALARIES AND EXPENSES

Appropriates $3,328,000 for salaries and expenses, Botanic Garden instead of $3,216,000 as proposed by the House and

$3,653,000 as proposed by the Senate of which $25,000 shall remain available until expended instead of $150,000 as proposed by

the Senate. With respect to object class and project differences between the House and Senate bills, the conferees have agreed to the

following:

Operating Budget .................................................................................. $3,303,000

Capitol Projects:

1. Replace equipment at growing facilities ................................ 0

2. Wayfinding signage .................................................................. 25,000

LIBRARY OF CONGRESS

SALARIES AND EXPENSES

Provides $282,838,000 for salaries and expenses, Library of Congress instead of $269,864,000 as proposed by the House and

$267,330,000 as proposed by the Senate. Of this amount,

$6,850,000 is made available from receipts collected by the Library

of Congress, and $10,459,575 is to remain available until expended

for acquisition of library materials as proposed by the House instead of $10,398,600 as proposed by the Senate. With respect to differences between the House and Senate bills, the conferees have

agreed to the following:

1. Mandatories ................................................................................... $8,459,000

2. Price level ...................................................................................... ¥1,920,000

3. Russian Leadership Program ....................................................... 10,000,000

4. Hands Across America .................................................................. 5,957,800

5. Arrearage reduction ...................................................................... 500,000

6. Mass deacidification ...................................................................... 1,216,000

7. National Film Preservation Board ............................................... 250,000

8. Digitization pilot with West Point ............................................... 404,000

9. Digitization non-personal costs $ ................................................. 7,590,000

10. Ft. Meade Storage: One-time costs .............................................. ¥406,000

11. Ft. Meade Storage: Open module one ......................................... 618,000

12. Automation: National Digital Library servers and storage ....... 300,000

13. Security Office ............................................................................... 2,342,000

14. High-speed transmission line ....................................................... 4,300,000

The conference agreement includes funds for four programs, to

remain available until expended. One provision, for $5,957,800, is

for teaching educators how to incorporate the Library’s digital collection into school curricula. A second provision provides $404,000

for a digitization pilot project with the Military Academy at West

Point. A third provision provides $10,000,000 to continue the Russian Leadership Program for FY2001. A fourth provision provides

$4,300,000 to the Library of Congress to develop high speed data

transmission between the Library of Congress and educational facilities, libraries, or networks serving the National Digital Library

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pilot program. The Library is directed to investigate the most cost

effective method of providing this capability and take the necessary

steps to develop the capability within the resources available. Any

remaining balance not required for the development of the high

speed data transmission is available for support of the Library’s

digital futures initiative.

The conferees agree with language in the House report directing the Library to employ students at the Ft. Meade remote storage

facility and with language in the Senate report directing the Library to devote all available resources to elimination of cataloging

arrearage.

The conferees are aware that a task force has been established

at the Library of Congress to explore the feasibility and desirability

of instituting a telecommuting program for the Library. The conferees encourage the Librarian to consider a telecommuting program for the Library (including the Congressional Research Service), and to include a description of the program with his next

budget submission.

COPYRIGHT OFFICE

SALARIES AND EXPENSES

Provides $38,523,000, including $29,283,000 made available

from receipts, for salaries and expenses, Copyright Office instead

of $38,771,000, including $31,783,000 from receipts, as proposed by

the House and $38,332,000, including $26,783,000 from receipts, as

proposed by the Senate. With respect to differences between the

House and Senate bills, the conferees have agreed to the following:

Salaries ................................................................................................... $31,318,000

Expenses ................................................................................................. 7,205,000

BOOKS FOR THE BLIND AND PHYSICALLY HANDICAPPED

SALARIES AND EXPENSES

Appropriates $48,609,000 for salaries and expenses, books for

the blind and physically handicapped instead of $48,507,000 as

proposed by the House and $48,711,000 as proposed by the Senate.

Of this amount, $14,154,000 shall remain available until expended

as proposed by the Senate instead of $14,135,000 as proposed by

the House.

FURNITURE AND FURNISHINGS

Appropriates $4,892,000 for furniture and furnishings at the

Library of Congress as proposed by the Senate instead of

$5,394,000 as proposed by the House.

ADMINISTRATIVE PROVISIONS

Various technical corrections and section number changes have

been made. In Section 201, the conferees have agreed to an overall

limitation of $199,630 on funds available for attendance at meetings as proposed by the House and a limitation of $59,300 on CRS

attendance at meetings as proposed by the House. The conference

agreement includes Section 202 as proposed by the House. The conVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00332 Fmt 6601 Sfmt 6601 E:\HR\OC\HR1033.002 pfrm03 PsN: HR1033
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ferees have modified the scope of accounts available for transfer authority to include transfers only from the furniture and furnishings

account and not to it. The conference agreement does not include

the separation incentives proposed by the House. The conferees

have authorized use of appropriated funds to pay the employer

share of benefit costs for employees of the Library of Congress child

care center.

ARCHITECT OF THE CAPITOL

LIBRARY BUILDINGS AND GROUNDS

STRUCTURAL AND MECHANICAL CARE

Appropriates $15,970,000 for structural and mechanical care,

Library buildings and grounds, Architect of the Capitol instead of

$15,837,000 as proposed by the House and $16,347,000 as proposed

by the Senate. With respect to object class and project differences

between the House and Senate bills, the conferees have agreed to

the following:

Operating Budget: 1. Personnel compensation and benefits .................................... $7,959,000

2. Annual expenses ...................................................................... 1,966,000

Capitol Projects:

3. Preservations environmental monitoring ............................... 0

4. Replace HVAC variable speed drive motor ............................ 90,000

5. Room and partition modifications .......................................... 165,000

6. Replace partition supports ...................................................... 200,000

7. Lightning protection, Madison building ................................. 190,000

GOVERNMENT PRINTING OFFICE

OFFICE OF SUPERINTENDENT OF DOCUMENTS

SALARIES AND EXPENSES

Appropriates $27,954,000 for salaries and expenses, Office of the Superintendent of Documents instead of $25,652,000 as proposed by the House and $30,255,000 as proposed by the Senate.

The conferees have retained the heading ‘‘Transfer of Funds’’ as

proposed by the House and ‘‘distribution’’ to replace the wording,

‘‘on-line access’’, within the appropriating paragraph as proposed by

the Senate. The conferees have included the Senate language for

the appropriating provision on the availability of $2,000,000 from

the appropriation and the appropriation provision authorizing

transfer of funds as proposed by the House.

The conferees recognize that the funding level provided may

require adjustments in historically applicable program services and

agree that no employee layoffs will be required. Emphasis should

be on streamlining the distribution of traditional paper copies of

publications which may include providing online access and less expensive electronic formats. The conferees agree to the transfer of

unexpended funds proposed by the House, which provides additional flexibility in meeting program requirements.

The conferees have agreed to modify the language in the House

report directing the Congressional Research Service to conduct a

study and direct that the General Accounting Office shall conduct

a comprehensive study on the impact of providing documents to the

330

public solely in electronic format. The study shall include: (1) a current inventory of publications and documents which are provided

to the public, (2) the frequency with which each type of publication

or document is requested for deposit at non-regional depository libraries, and (3) an assessment of the feasibility of transfer of the

depository library program to the Library of Congress that: Identifies how such a transfer might be accomplished; Identifies when

such a transfer might optimally occur; Examines the functions,

services, and programs of the Superintendent of Documents; Examines and identifies administrative and infrastructure support that

is provided to the Superintendent by the Government Printing Office, with a view to the implications for such a transfer; Examines

and identifies the costs, for both the Government Printing Office

and the Library of Congress, of such a transfer; Identifies measures

that are necessary to ensure the success of such a transfer.

The study shall be submitted to the Committee on House Administration and the Senate Committee on Rules and Administration by March 30, 2001.

ADMINISTRATIVE PROVISION

The conferees have not included a provision proposed by the

Senate amending 44 U.S.C. 1708.

GENERAL ACCOUNTING OFFICE

SALARIES AND EXPENSES

Appropriates $384,867,000 for salaries and expenses, General

Accounting Office as proposed by the Senate instead of

$368,896,000 as proposed by the House. Within the appropriating

paragraph, the conferees have set the limitation on representation

expenses at $10,000 as proposed by the House, instead of $7,000

as proposed by the Senate and made technical corrections to two

other matters.

The General Accounting Office shall undertake a study of the

effects on air pollution caused by all polluting sources, including

automobiles and the electric power generation emissions of the

Tennessee Valley Authority on the Great Smoky Mountains National Park, the Blue Ridge Parkway and the Pisgah, Nantahla,

and Cherokee National Forests. This study will also include the

amount of carbon emissions avoided by the use of non-emitting

electricity sources such as nuclear power within the same region.

The GAO shall report to the Committees on Appropriations no

later than January 31, 2001.

ADMINISTRATIVE PROVISIONS

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

TITLE III—GENERAL PROVISIONS

In Title III, General Provisions, section numbers have been

changed to conform to the conference agreement and technical corrections have been made. The conferees have included a liquidated

damages provision proposed by the House. The conferees have inVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00334 Fmt 6601 Sfmt 6601 E:\HR\OC\HR1033.002 pfrm03 PsN: HR1033
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cluded provisions proposed by the Senate changing a date and extending the Russian Leadership Program. The conferees have not

included a proposed merger of various law enforcement activities

and have amended language in the Senate bill regarding the placement of statues in Statuary Hall. The conferees have adjusted the

limitation on the National Garden and have agreed to establish a

Center for Russian Leadership Development as proposed by the

Senate. A Sense of the Senate provision and a limitation on the use

of pesticides have not been included. There is a provision regarding

an assessment by the General Accounting Office of a report referred to in the National Defense Authorization Act for Fiscal Year

1998.

TITLE IV—FISCAL YEAR 2000 EMERGENCY SUPPLEMENTAL

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

considered emergency situations.

LEGISLATIVE BRANCH

JOINT ITEMS

CAPITOL POLICE BOARD

SECURITY ENHANCEMENTS

The conference agreement provides an additional $2,102,000

for Fiscal Year 2000 to the Capitol Police Board for security enhancements. Of this amount, $228,000 are for acquisition and installation of card readers for four additional Capitol buildings access points not currently funded in the security enhancements

plan. In addition, $1,874,000 is provided for work at the Library of

Congress to complete the closed circuit television ($1,390,000) and

access control ($484,000) improvement tasks. These funds are designated as an emergency requirement.

ARCHITECT OF THE CAPITOL

CAPITOL BUILDINGS AND GROUNDS

HOUSE OFFICE BUILDINGS

The conference agreement appropriates $9,000,000 for Fiscal

Year 2000 to the Architect of the Capitol for urgent repairs to the

underground garage in the Cannon House Office Building. These

funds are designated as an emergency requirement.

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

FEDERAL HOUSING ADMINISTRATION

FHA—GENERAL AND SPECIAL RISK PROGRAM ACCOUNT

At the request of the House and Senate subcommittees on VA,

HUD and Independent Agencies Appropriations, the conferees have

agreed to include a provision for the Department of Housing and

Urban Development (HUD) that provides, on an emergency basis,

332

$40,000,000 in credit subsidy for the FHA General and Special

Risk Program Account. Without these additional funds, the Title I

home improvement program, the condominium loan program, the

FHA reverse mortgage program for senior citizens, and various

multifamily housing insurance programs would have to be suspended. The additional appropriation would have been unnecessary

if HUD had adhered to assumptions made by the Office of Management and Budget (OMB) in determining credit subsidy rates when

the President’s budget was submitted to Congress, a violation of

budget conventions. In the future, HUD should refrain from similar

actions.

CONFERENCE TOTAL—WITH COMPARISONS

The total new budget (obligational) authority for the fiscal year

2001 recommended by the Committee of Conference, with comparisons to the fiscal year 2000 amount, the 2001 budget estimates,

and the House and Senate bills for 2001 follow:

[In thousands of dollars]

New budget (obligational) authority, fiscal year 2000 .................................. $2,475,080

Budget estimates of new (obligational) authority, fiscal year 2001 ............ 2,725,604

House bill, fiscal year 2001 ............................................................................. 1,913,691

Senate bill, fiscal year 2001 ............................................................................ 2,523,378

Conference agreement, fiscal year 2001 ........................................................ 2,526,863

Conference agreement compared with:

New budget (obligational) authority, fiscal year 2000 .......................... +51,783

Budget estimates of new (obligational) authority, fiscal year 2001 ..... ¥198,741

House bill, fiscal year 2001 ...................................................................... +613,172

Senate bill, fiscal year 2001 ..................................................................... +3,485

Title IV—FY 2000 Emergency Supplemental ............................................... 51,102

TREASURY DEPARTMENT, THE UNITED STATES POSTAL

SERVICE, THE EXECUTIVE OFFICE OF THE PRESIDENT,

AND CERTAIN INDEPENDENT AGENCIES APPROPRIATIONS

The conference agreement would enact the provisions of H.R.

5658 as introduced on December 14, 2000. The text of that bill follows:

A BILL Making appropriations for the Treasury Department, the United States

Postal Service, the Executive Office of the President, and certain Independent

Agencies for the fiscal year ending September 30, 2001, and for other purposes

Be it enacted by the Senate and House of Representatives of the

United States of America in Congress assembled, That the following

sums are appropriated, out of any money in the Treasury not otherwise appropriated, for the Treasury Department, the United States

Postal Service, the Executive Office of the President, and certain

Independent Agencies for the fiscal year ending September 30, 2001,

and for other purposes, namely:

TITLE I—DEPARTMENT OF THE TREASURY

DEPARTMENTAL OFFICES

SALARIES AND EXPENSES

For necessary expenses of the Departmental Offices including

operation and maintenance of the Treasury Building and Annex;

333

hire of passenger motor vehicles; maintenance, repairs, and improvements of, and purchase of commercial insurance policies for,

real properties leased or owned overseas, when necessary for the

performance of official business; not to exceed $2,900,000 for official

travel expenses; not to exceed $3,813,000, to remain available until

expended for information technology modernization requirements;

not to exceed $150,000 for official reception and representation expenses; not to exceed $258,000 for unforeseen emergencies of a confidential nature, to be allocated and expended under the direction

of the Secretary of the Treasury and to be accounted for solely on

his certificate, $156,315,000: Provided, That the Office of Foreign Assets Control shall be funded at no less than $11,439,000: Provided further, That of these amounts $2,900,000 is available for

grants to State and local law enforcement groups to help fight

money laundering.

DEPARTMENT-WIDE SYSTEMS AND CAPITAL INVESTMENTS PROGRAMS

(INCLUDING TRANSFER OF FUNDS)

For development and acquisition of automatic data processing

equipment, software, and services for the Department of the Treasury, $47,287,000, to remain available until expended: Provided,

That these funds shall be transferred to accounts and in amounts

as necessary to satisfy the requirements of the Department’s offices,

bureaus, and other organizations: Provided further, That this transfer authority shall be in addition to any other transfer authority

provided in this Act: Provided further, That none of the funds appropriated shall be used to support or supplement the Internal Revenue Service appropriations for Information Systems.

OFFICE OF INSPECTOR GENERAL

SALARIES AND EXPENSES

For necessary expenses of the Office of Inspector General in carrying out the provisions of the Inspector General Act of 1978, as

amended, not to exceed $2,000,000 for official travel expenses, including hire of passenger motor vehicles; and not to exceed $100,000

for unforeseen emergencies of a confidential nature, to be allocated

and expended under the direction of the Inspector General of the

Treasury, $32,899,000.

TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION

SALARIES AND EXPENSES

For necessary expenses of the Treasury Inspector General for

Tax Administration in carrying out the Inspector General Act of

1978, as amended, including purchase (not to exceed 150 for replacement only for police-type use) and hire of passenger motor vehicles (31 U.S.C. 1343(b)); services authorized by 5 U.S.C. 3109, at

such rates as may be determined by the Inspector General for Tax

Administration; not to exceed $6,000,000 for official travel expenses;

and not to exceed $500,000 for unforeseen emergencies of a confidential nature, to be allocated and expended under the direction of the

Inspector General for Tax Administration, $118,427,000.

334

TREASURY BUILDING AND ANNEX REPAIR AND RESTORATION

For the repair, alteration, and improvement of the Treasury

Building and Annex, $31,000,000, to remain available until expended.

EXPANDED ACCESS TO FINANCIAL SERVICES

(INCLUDING TRANSFER OF FUNDS)

To develop and implement programs to expand access to financial services for low- and moderate-income individuals, $2,000,000,

to remain available until expended: Provided, That of these funds,

such sums as may be necessary may be transferred to accounts of

the Department’s offices, bureaus, and other organizations: Provided

further, That this transfer authority shall be in addition to any

other transfer authority provided in this Act.

FINANCIAL CRIMES ENFORCEMENT NETWORK

SALARIES AND EXPENSES

For necessary expenses of the Financial Crimes Enforcement

Network, including hire of passenger motor vehicles; travel expenses

of non-Federal law enforcement personnel to attend meetings concerned with financial intelligence activities, law enforcement, and financial regulation; not to exceed $14,000 for official reception and

representation expenses; and for assistance to Federal law enforcement agencies, with or without reimbursement, $37,576,000, of

which not to exceed $2,800,000 shall remain available until September 30, 2003; and of which $2,275,000 shall remain available

until September 30, 2002: Provided, That funds appropriated in

this account may be used to procure personal services contracts.

COUNTERTERRORISM FUND

For necessary expenses, as determined by the Secretary,

$55,000,000, to remain available until expended, to reimburse any

Department of the Treasury organization for the costs of providing

support to counter, investigate, or prosecute terrorism, including

payment of rewards in connection with these activities: Provided,

That the entire amount is designated by the Congress as an emergency requirement pursuant to section 251(b)(2)(A) of the Balanced

Budget and Emergency Deficit Control Act of 1985, as amended:

Provided further, That the entire amount shall be available only to

the extent that an official budget request for a specific dollar

amount that includes designation of the entire amount of the request as an emergency requirement as defined in such Act is transmitted by the President to the Congress.

FEDERAL LAW ENFORCEMENT TRAINING CENTER

SALARIES AND EXPENSES

For necessary expenses of the Federal Law Enforcement Training Center, as a bureau of the Department of the Treasury, including materials and support costs of Federal law enforcement basic

training; purchase (not to exceed 52 for police-type use, without reVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00338 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.003 pfrm03 PsN: HR1033
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gard to the general purchase price limitation) and hire of passenger

motor vehicles; for expenses for student athletic and related activities; uniforms without regard to the general purchase price limitation for the current fiscal year; the conducting of and participating

in firearms matches and presentation of awards; for public awareness and enhancing community support of law enforcement training; not to exceed $11,500 for official reception and representation

expenses; room and board for student interns; and services as authorized by 5 U.S.C. 3109, $94,483,000, of which up to $17,043,000

for materials and support costs of Federal law enforcement basic

training shall remain available until September 30, 2003: Provided,

That the Center is authorized to accept and use gifts of property,

both real and personal, and to accept services, for authorized purposes, including funding of a gift of intrinsic value which shall be

awarded annually by the Director of the Center to the outstanding

student who graduated from a basic training program at the Center

during the previous fiscal year, which shall be funded only by gifts

received through the Center’s gift authority: Provided further, That

notwithstanding any other provision of law, students attending

training at any Federal Law Enforcement Training Center site shall

reside in on-Center or Center-provided housing, insofar as available

and in accordance with Center policy: Provided further, That funds

appropriated in this account shall be available, at the discretion of

the Director, for the following: training United States Postal Service

law enforcement personnel and Postal police officers; State and local

government law enforcement training on a space-available basis;

training of foreign law enforcement officials on a space-available

basis with reimbursement of actual costs to this appropriation, except that reimbursement may be waived by the Secretary for law enforcement training activities in foreign countries undertaken pursuant to section 801 of the Antiterrorism and Effective Death Penalty

Act of 1996, Public Law 104–32; training of private sector security

officials on a space-available basis with reimbursement of actual

costs to this appropriation; and travel expenses of non-Federal personnel to attend course development meetings and training sponsored by the Center: Provided further, That the Center is authorized

to obligate funds in anticipation of reimbursements from agencies

receiving training sponsored by the Federal Law Enforcement

Training Center, except that total obligations at the end of the fiscal

year shall not exceed total budgetary resources available at the end

of the fiscal year: Provided further, That the Federal Law Enforcement Training Center is authorized to provide training for the Gang

Resistance Education and Training program to Federal and nonFederal 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 shortterm 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 faciliVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00339 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.003 pfrm03 PsN: HR1033
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ties, and for ongoing maintenance, facility improvements, and related expenses, $29,205,000, to remain available until expended.

INTERAGENCY LAW ENFORCEMENT

INTERAGENCY CRIME AND DRUG ENFORCEMENT

For expenses necessary to conduct investigations and convict offenders involved in organized crime drug trafficking, including cooperative efforts with State and local law enforcement, as it relates

to the Treasury Department law enforcement violations such as

money laundering, violent crime, and smuggling, $103,476,000, of

which $7,827,000 shall remain available until expended.

FINANCIAL MANAGEMENT SERVICE

SALARIES AND EXPENSES

For necessary expenses of the Financial Management Service, $206,851,000, of which not to exceed $10,635,000 shall remain

available until September 30, 2003, for information systems modernization initiatives; and of which not to exceed $2,500 shall be

available for official reception and representation expenses.

BUREAU OF ALCOHOL, TOBACCO AND FIREARMS

SALARIES AND EXPENSES

For necessary expenses of the Bureau of Alcohol, Tobacco and

Firearms, including purchase of not to exceed 812 vehicles for police-type use, of which 650 shall be for replacement only, and hire

of passenger motor vehicles; hire of aircraft; services of expert witnesses at such rates as may be determined by the Director; for payment of per diem and/or subsistence allowances to employees where

a major investigative assignment requires an employee to work 16

hours or more per day or to remain overnight at his or her post of

duty; not to exceed $20,000 for official reception and representation

expenses; for training of State and local law enforcement agencies

with or without reimbursement, including training in connection

with the training and acquisition of canines for explosives and fire

accelerants detection; not to exceed $50,000 for cooperative research

and development programs for Laboratory Services and Fire Research Center activities; and provision of laboratory assistance to

State and local agencies, with or without reimbursement,

$768,695,000, of which not to exceed $1,000,000 shall be available

for the payment of attorneys’ fees as provided by 18 U.S.C.

924(d)(2); of which up to $2,000,000 shall be available for the equipping of any vessel, vehicle, equipment, or aircraft available for official use by a State or local law enforcement agency if the conveyance

will be used in joint law enforcement operations with the Bureau of

Alcohol, Tobacco and Firearms and for the payment of overtime salaries including Social Security and Medicare, travel, fuel, training,

equipment, supplies, and other similar costs of State and local law

enforcement personnel, including sworn officers and support personnel, that are incurred in joint operations with the Bureau of Alcohol, Tobacco and Firearms: Provided, That no funds made available by this or any other Act may be used to transfer the functions,

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missions, or activities of the Bureau of Alcohol, Tobacco and Firearms to other agencies or Departments in fiscal year 2001: Provided

further, That no funds appropriated herein shall be available for

salaries or administrative expenses in connection with consolidating

or centralizing, within the Department of the Treasury, the records,

or any portion thereof, of acquisition and disposition of firearms

maintained by Federal firearms licensees: Provided further, That no

funds appropriated herein shall be used to pay administrative expenses or the compensation of any officer or employee of the United

States to implement an amendment or amendments to 27 CFR

178.118 or to change the definition of ‘‘Curios or relics’’ in 27 CFR

178.11 or remove any item from ATF Publication 5300.11 as it existed on January 1, 1994: Provided further, That none of the funds

appropriated herein shall be available to investigate or act upon applications for relief from Federal firearms disabilities under 18

U.S.C. 925(c): Provided further, That such funds shall be available

to investigate and act upon applications filed by corporations for relief from Federal firearms disabilities under 18 U.S.C. 925(c): Provided further, That no funds under this Act may be used to electronically retrieve information gathered pursuant to 18 U.S.C.

923(g)(4) by name or any personal identification code.

UNITED STATES CUSTOMS SERVICE

SALARIES AND EXPENSES

For necessary expenses of the United States Customs Service,

including purchase and lease of up to 1,050 motor vehicles of which

550 are for replacement only and of which 1,030 are for police-type

use and commercial operations; hire of motor vehicles; contracting

with individuals for personal services abroad; not to exceed $40,000

for official reception and representation expenses; and awards of

compensation to informers, as authorized by any Act enforced by the

United States Customs Service, $1,863,765,000, of which such sums

as become available in the Customs User Fee Account, except sums

subject to section 13031(f)(3) of the Consolidated Omnibus Budget

Reconciliation Act of 1985, as amended (19 U.S.C. 58c(f)(3)), shall

be derived from that Account; of the total, not to exceed $150,000

shall be available for payment for rental space in connection with

preclearance operations; not to exceed $4,000,000 shall be available

until expended for research; of which not less than $100,000 shall

be available to promote public awareness of the child pornography

tipline; of which not less than $200,000 shall be available for

Project Alert; not to exceed $5,000,000 shall be available until expended for conducting special operations pursuant to 19 U.S.C.

2081; not to exceed $8,000,000 shall be available until expended for

the procurement of automation infrastructure items, including hardware, software, and installation; and not to exceed $5,000,000 shall

be available until expended for repairs to Customs facilities: Provided, That uniforms may be purchased without regard to the general purchase price limitation for the current fiscal year: Provided

further, That notwithstanding any other provision of law, the fiscal

year aggregate overtime limitation prescribed in subsection 5(c)(1) of

the Act of February 13, 1911 (19 U.S.C. 261 and 267) shall be

$30,000.

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HARBOR MAINTENANCE FEE COLLECTION

(INCLUDING TRANSFER OF FUNDS)

For administrative expenses related to the collection of the Harbor Maintenance Fee, pursuant to Public Law 103–182, $3,000,000,

to be derived from the Harbor Maintenance Trust Fund and to be

transferred to and merged with the Customs ‘‘Salaries and Expenses’’ account for such purposes.

OPERATION, MAINTENANCE AND PROCUREMENT, AIR AND MARINE

INTERDICTION PROGRAMS

For expenses, not otherwise provided for, necessary for the operation and maintenance of marine vessels, aircraft, and other related

equipment of the Air and Marine Programs, including operational

training and mission-related travel, and rental payments for facilities occupied by the air or marine interdiction and demand reduction programs, the operations of which include the following: the

interdiction of narcotics and other goods; the provision of support

to Customs and other Federal, State, and local agencies in the enforcement or administration of laws enforced by the Customs Service; and, at the discretion of the Commissioner of Customs, the provision of assistance to Federal, State, and local agencies in other

law enforcement and emergency humanitarian efforts, $133,228,000,

which shall remain available until expended: Provided, That no aircraft or other related equipment, with the exception of aircraft

which is one of a kind and has been identified as excess to Customs

requirements and aircraft which has been damaged beyond repair,

shall be transferred to any other Federal agency, department, or office outside of the Department of the Treasury, during fiscal year

2001 without the prior approval of the Committees on Appropriations.

AUTOMATION MODERNIZATION

For expenses not otherwise provided for Customs automated

systems, $258,400,000, to remain available until expended, of which

$5,400,000 shall be for the International Trade Data System, and

not less than $130,000,000 shall be for the development of the Automated Commercial Environment: Provided, That none of the funds

appropriated under this heading may be obligated for the Automated Commercial Environment until the United States Customs

Service prepares and submits to the Committees on Appropriations

a final plan for expenditure that: (1) meets the capital planning and

investment control review requirements established by the Office of

Management and Budget, including OMB Circular A–11, part 3; (2)

complies with the United States Customs Service’s Enterprise Information Systems Architecture; (3) complies with the acquisition

rules, requirements, guidelines, and systems acquisition management practices of the Federal Government; (4) is reviewed and approved by the Customs Investment Review Board, the Department of

the Treasury, and the Office of Management and Budget; and (5)

is reviewed by the General Accounting Office: Provided further,

That none of the funds appropriated under this heading may be obligated for the Automated Commercial Environment until that final

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expenditure plan has been approved by the Committees on Appropriations.

BUREAU OF THE PUBLIC DEBT

ADMINISTERING THE PUBLIC DEBT

For necessary expenses connected with any public-debt issues of the United States, $187,301,000, of which not to exceed $2,500 shall

be available for official reception and representation expenses, and

of which not to exceed $2,000,000 shall remain available until expended for systems modernization: Provided, That the sum appropriated herein from the General Fund for fiscal year 2001 shall be

reduced by not more than $4,400,000 as definitive security issue fees

and Treasury Direct Investor Account Maintenance fees are collected, so as to result in a final fiscal year 2001 appropriation from

the General Fund estimated at $182,901,000. In addition, $23,600,

to be derived from the Oil Spill Liability Trust Fund to reimburse

the Bureau for administrative and personnel expenses for financial

management of the Fund, as authorized by section 1012 of Public

Law 101–380; and in addition, to be appropriated from the General

Fund, such sums as may be necessary for administrative expenses

in association with the South Dakota Trust Fund and the Cheyenne

River Sioux Tribe Terrestrial Wildlife Restoration and Lower Brule

Sioux Tribe Terrestrial Restoration Trust Fund, as authorized by

sections 603(f) and 604(f) of Public Law 106–53.

INTERNAL REVENUE SERVICE

PROCESSING, ASSISTANCE, AND MANAGEMENT

For necessary expenses of the Internal Revenue Service for tax

returns processing; revenue accounting; tax law and account assistance to taxpayers by telephone and correspondence; providing an

independent taxpayer advocate within the Service; programs to

match information returns and tax returns; management services;

rent and utilities; and services as authorized by 5 U.S.C. 3109, at

such rates as may be determined by the Commissioner,

$3,567,001,000, of which up to $3,950,000 shall be for the Tax

Counseling for the Elderly Program, and of which not to exceed

$25,000 shall be for official reception and representation expenses.

TAX LAW ENFORCEMENT

For necessary expenses of the Internal Revenue Service for determining and establishing tax liabilities; providing litigation support; issuing technical rulings; providing service to tax exempt customers, including employee plans, tax exempt organizations, and

government entities; examining employee plans and exempt organizations; conducting criminal investigation and enforcement activities; securing unfiled tax returns; collecting unpaid accounts; compiling statistics of income and conducting compliance research; purchase (for police-type use, not to exceed 850) and hire of passenger

motor vehicles (31 U.S.C. 1343(b)); and services as authorized by 5

U.S.C. 3109, at such rates as may be determined by the Commissioner, $3,382,402,000, of which not to exceed $1,000,000 shall remain available until September 30, 2003, for research.

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EARNED INCOME TAX CREDIT COMPLIANCE INITIATIVE

For funding essential earned income tax credit compliance and

error reduction initiatives pursuant to section 5702 of the Balanced

Budget Act of 1997 (Public Law 105–33), $145,000,000, of which not

to exceed $10,000,000 may be used to reimburse the Social Security

Administration for the costs of implementing section 1090 of the

Taxpayer Relief Act of 1997.

INFORMATION SYSTEMS

For necessary expenses of the Internal Revenue Service for information systems and telecommunications support, including developmental information systems and operational information systems;

the hire of passenger motor vehicles (31 U.S.C. 1343(b)); and services as authorized by 5 U.S.C. 3109, at such rates as may be determined by the Commissioner, $1,545,090,000 which shall remain

available until September 30, 2002.

ADMINISTRATIVE PROVISIONS—INTERNAL REVENUE SERVICE

SEC. 101. Not to exceed 5 percent of any appropriation made

available in this Act to the Internal Revenue Service may be transferred to any other Internal Revenue Service appropriation upon the

advance approval of the Committees on Appropriations.

SEC. 102. The Internal Revenue Service shall maintain a training program to ensure that Internal Revenue Service employees are

trained in taxpayers’ rights, in dealing courteously with the taxpayers, and in cross-cultural relations.

SEC. 103. The Internal Revenue Service shall institute and enforce policies and procedures that will safeguard the confidentiality

of taxpayer information.

SEC. 104. Funds made available by this or any other Act to the

Internal Revenue Service shall be available for improved facilities

and increased manpower to provide sufficient and effective 1–800

help line service for taxpayers. The Commissioner shall continue to

make the improvement of the Internal Revenue Service 1–800 help

line service a priority and allocate resources necessary to increase

phone lines and staff to improve the Internal Revenue Service 1–800

help line service.

UNITED STATES SECRET SERVICE

SALARIES AND EXPENSES

For necessary expenses of the United States Secret Service, including purchase of not to exceed 844 vehicles for police-type use, of

which 541 shall be for replacement only, and hire of passenger

motor vehicles; purchase of American-made side-car compatible motorcycles; hire of aircraft; training and assistance requested by State

and local governments, which may be provided without reimbursement; services of expert witnesses at such rates as may be determined by the Director; rental of buildings in the District of Columbia, and fencing, lighting, guard booths, and other facilities on private or other property not in Government ownership or control, as

may be necessary to perform protective functions; for payment of per

diem and/or subsistence allowances to employees where a protective

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assignment during the actual day or days of the visit of a protectee

require an employee to work 16 hours per day or to remain overnight at his or her post of duty; the conducting of and participating

in firearms matches; presentation of awards; for travel of Secret

Service employees on protective missions without regard to the limitations on such expenditures in this or any other Act if approval is

obtained in advance from the Committees on Appropriations; for research and development; for making grants to conduct behavioral

research in support of protective research and operations; not to exceed $25,000 for official reception and representation expenses; not

to exceed $100,000 to provide technical assistance and equipment to

foreign law enforcement organizations in counterfeit investigations;

for payment in advance for commercial accommodations as may be

necessary to perform protective functions; and for uniforms without

regard to the general purchase price limitation for the current fiscal

year, $823,800,000, of which $3,633,000 shall be available as a

grant for activities related to the investigations of exploited children

and shall remain available until expended: Provided, That up to

$18,000,000 provided for protective travel shall remain available

until September 30, 2002.

ACQUISITION, CONSTRUCTION, IMPROVEMENTS, AND RELATED

EXPENSES

For necessary expenses of construction, repair, alteration, and

improvement of facilities, $8,941,000, to remain available until expended.

GENERAL PROVISIONS—DEPARTMENT OF THE TREASURY

SEC. 110. Any obligation or expenditure by the Secretary of the

Treasury in connection with law enforcement activities of a Federal

agency or a Department of the Treasury law enforcement organization in accordance with 31 U.S.C. 9703(g)(4)(B) from unobligated

balances remaining in the Fund on September 30, 2001, shall be

made in compliance with reprogramming guidelines.

SEC. 111. Appropriations to the Department of the Treasury in

this Act shall be available for uniforms or allowances therefor, as

authorized by law (5 U.S.C. 5901), including maintenance, repairs,

and cleaning; purchase of insurance for official motor vehicles operated in foreign countries; purchase of motor vehicles without regard

to the general purchase price limitations for vehicles purchased and

used overseas for the current fiscal year; entering into contracts with

the Department of State for the furnishing of health and medical

services to employees and their dependents serving in foreign countries; and services authorized by 5 U.S.C. 3109.

SEC. 112. The funds provided to the Bureau of Alcohol, Tobacco

and Firearms for fiscal year 2001 in this Act for the enforcement of

the Federal Alcohol Administration Act shall be expended in a manner so as not to diminish enforcement efforts with respect to section

105 of the Federal Alcohol Administration Act.

SEC. 113. Not to exceed 2 percent of any appropriations in this

Act made available to the Federal Law Enforcement Training Center, Financial Crimes Enforcement Network, Bureau of Alcohol, Tobacco and Firearms, United States Customs Service, and United

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States Secret Service may be transferred between such appropriations upon the advance approval of the Committees on Appropriations. No transfer may increase or decrease any such appropriation

by more than 2 percent.

SEC. 114. Not to exceed 2 percent of any appropriations in this

Act made available to the Departmental Offices, Office of Inspector

General, Treasury Inspector General for Tax Administration, Financial Management Service, and Bureau of the Public Debt, may be

transferred between such appropriations upon the advance approval

of the Committees on Appropriations. No transfer may increase or

decrease any such appropriation by more than 2 percent.

SEC. 115. Not to exceed 2 percent of any appropriation made

available in this Act to the Internal Revenue Service may be transferred to the Treasury Inspector General for Tax Administration’s

appropriation upon the advance approval of the Committees on Appropriations. No transfer may increase or decrease any such appropriation by more than 2 percent.

SEC. 116. Of the funds available for the purchase of law enforcement vehicles, no funds may be obligated until the Secretary of

the Treasury certifies that the purchase by the respective Treasury

bureau is consistent with Departmental vehicle management principles: Provided, That the Secretary may delegate this authority to

the Assistant Secretary for Management.

SEC. 117. None of the funds appropriated in this Act or otherwise available to the Department of the Treasury or the Bureau of

Engraving and Printing may be used to redesign the $1 Federal Reserve note.

SEC. 118. Hereafter, funds made available by this or any other

Act may be used to pay premium pay for protective services authorized by section 3056(a) of title 18, United States Code, without regard to the limitation on the rate of pay payable during a pay period contained in section 5547(c)(2) of title 5, United States Code,

except that such premium pay shall not be payable to an employee

to the extent that the aggregate of the employee’s basic and premium

pay for the year would otherwise exceed the annual equivalent of

that limitation. The term premium pay refers to the provisions of

law cited in the first sentence of section 5547(a) of title 5, United

States Code. Payment of additional premium pay payable under

this section may be made in a lump sum on the last payday of the

calendar year.

SEC. 119. The Secretary of the Treasury may transfer funds

from ‘‘Salaries and Expenses’’, Financial Management Service, to

the Debt Services Account as necessary to cover the costs of debt collection: Provided, That such amounts shall be reimbursed to such

Salaries and Expenses account from debt collections received in the

Debt Services Account.

SEC. 120. Under the heading of Treasury Franchise Fund in

Public Law 104–208, delete the following: the phrases ‘‘pilot, as authorized by section 403 of Public Law 103–356,’’; and ‘‘as provided

in such section’’; and the final proviso. After the phrase ‘‘to be available’’, insert ‘‘without fiscal year limitation,’’. After the phrase, ‘‘established in the Treasury a franchise fund’’, insert, ‘‘until October

1, 2002’’.

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SEC. 121. Notwithstanding any other provision of law, no reorganization of the field operations of the United States Customs

Service Office of Field Operations shall result in a reduction in service to the area served by the Port of Racine, Wisconsin, below the

level of service provided in fiscal year 2000.

SEC. 122. Notwithstanding any other provision of law, the Bureau of Alcohol, Tobacco and Firearms shall reimburse the subcontractor that provided services in 1993 and 1994 pursuant to Bureau

of Alcohol, Tobacco and Firearms contract number TATF 93–3 from

amounts appropriated for fiscal year 2001 or unobligated balances

from prior fiscal years, and such reimbursement shall cover the cost

of all professional services rendered, plus interest calculated in accordance with the Contract Dispute Act of 1978 (41 U.S.C. 601 et

seq.)

This title may be cited as the ‘‘Treasury Department Appropriations Act, 2001’’.

TITLE II—POSTAL SERVICE

PAYMENT TO THE POSTAL SERVICE FUND

For payment to the Postal Service Fund for revenue forgone on

free and reduced rate mail, pursuant to subsections (c) and (d) of

section 2401 of title 39, United States Code, $96,093,000, of which

$67,093,000 shall not be available for obligation until October 1,

2001: Provided, That mail for overseas voting and mail for the

blind shall continue to be free: Provided further, That 6-day delivery and rural delivery of mail shall continue at not less than the

1983 level: Provided further, That none of the funds made available

to the Postal Service by this Act shall be used to implement any

rule, regulation, or policy of charging any officer or employee of any

State or local child support enforcement agency, or any individual

participating in a State or local program of child support enforcement, a fee for information requested or provided concerning an address of a postal customer: Provided further, That none of the funds

provided in this Act shall be used to consolidate or close small rural

and other small post offices in fiscal year 2001.

This title may be cited as the ‘‘Postal Service Appropriations

Act, 2001’’.

TITLE III—EXECUTIVE OFFICE OF THE PRESIDENT AND

FUNDS APPROPRIATED TO THE PRESIDENT

COMPENSATION OF THE PRESIDENT AND THE WHITE HOUSE OFFICE

COMPENSATION OF THE PRESIDENT

For compensation of the President, including an expense allowance at the rate of $50,000 per annum as authorized by 3 U.S.C.

102, $390,000: Provided, That none of the funds made available for

official expenses shall be expended for any other purpose and any

unused amount shall revert to the Treasury pursuant to section

1552 of title 31, United States Code: Provided further, That none of

the funds made available for official expenses shall be considered as

taxable to the President.

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SALARIES AND EXPENSES

For necessary expenses for the White House as authorized by

law, including not to exceed $3,850,000 for services as authorized by

5 U.S.C. 3109 and 3 U.S.C. 105; subsistence expenses as authorized

by 3 U.S.C. 105, which shall be expended and accounted for as provided in that section; hire of passenger motor vehicles, newspapers,

periodicals, teletype news service, and travel (not to exceed $100,000

to be expended and accounted for as provided by 3 U.S.C. 103); and

not to exceed $19,000 for official entertainment expenses, to be available for allocation within the Executive Office of the President,

$53,288,000: Provided, That $9,072,000 of the funds appropriated

shall be available for reimbursements to the White House Communications Agency.

EXECUTIVE RESIDENCE AT THE WHITE HOUSE

OPERATING EXPENSES

For the care, maintenance, repair and alteration, refurnishing,

improvement, heating, and lighting, including electric power and

fixtures, of the Executive Residence at the White House and official

entertainment expenses of the President, $10,900,000, to be expended

and accounted for as provided by 3 U.S.C. 105, 109, 110, and 112–

114.

REIMBURSABLE EXPENSES

For the reimbursable expenses of the Executive Residence at the

White House, such sums as may be necessary: Provided, That all reimbursable operating expenses of the Executive Residence shall be

made in accordance with the provisions of this paragraph: Provided

further, That, notwithstanding any other provision of law, such

amount for reimbursable operating expenses shall be the exclusive

authority of the Executive Residence to incur obligations and to receive offsetting collections, for such expenses: Provided further, That

the Executive Residence shall require each person sponsoring a reimbursable political event to pay in advance an amount equal to the

estimated cost of the event, and all such advance payments shall be

credited to this account and remain available until expended: Provided further, That the Executive Residence shall require the national committee of the political party of the President to maintain

on deposit $25,000, to be separately accounted for and available for

expenses relating to reimbursable political events sponsored by such

committee during such fiscal year: Provided further, That the Executive Residence shall ensure that a written notice of any amount

owed for a reimbursable operating expense under this paragraph is

submitted to the person owing such amount within 60 days after

such expense is incurred, and that such amount is collected within

30 days after the submission of such notice: Provided further, That

the Executive Residence shall charge interest and assess penalties

and other charges on any such amount that is not reimbursed within such 30 days, in accordance with the interest and penalty provisions applicable to an outstanding debt on a United States Government claim under section 3717 of title 31, United States Code: Provided further, That each such amount that is reimbursed, and any

345

accompanying interest and charges, shall be deposited in the Treasury as miscellaneous receipts: Provided further, That the Executive

Residence shall prepare and submit to the Committees on Appropriations, by not later than 90 days after the end of the fiscal year

covered by this Act, a report setting forth the reimbursable operating

expenses of the Executive Residence during the preceding fiscal year,

including the total amount of such expenses, the amount of such

total that consists of reimbursable official and ceremonial events,

the amount of such total that consists of reimbursable political

events, and the portion of each such amount that has been reimbursed as of the date of the report: Provided further, That the Executive Residence shall maintain a system for the tracking of expenses

related to reimbursable events within the Executive Residence that

includes a standard for the classification of any such expense as political or nonpolitical: Provided further, That no provision of this

paragraph may be construed to exempt the Executive Residence

from any other applicable requirement of subchapter I or II of chapter 37 of title 31, United States Code.

WHITE HOUSE REPAIR AND RESTORATION

For the repair, alteration, and improvement of the Executive

Residence at the White House, $968,000, to remain available until

expanded, for projects for required maintenance, safety and health

issues, Presidential transition, telecommunications infrastructure

repair, and continued preventive maintenance.

SPECIAL ASSISTANCE TO THE PRESIDENT AND THE OFFICIAL

RESIDENCE OF THE VICE PRESIDENT

SALARIES AND EXPENSES

For necessary expenses to enable the Vice President to provide

assistance to the President in connection with specially assigned

functions; services as authorized by 5 U.S.C. 3109 and 3 U.S.C.

106, including subsistence expenses as authorized by 3 U.S.C. 106,

which shall be expended and accounted for as provided in that section; and hire of passenger motor vehicles, $3,673,000.

OPERATING EXPENSES

(INCLUDING TRANSFER OF FUNDS)

For the care, operation, refurnishing, improvement, heating and

lighting, including electric power and fixtures, of the official residence of the Vice President; the hire of passenger motor vehicles;

and not to exceed $90,000 for official entertainment expenses of the

Vice President, to be accounted for solely on his certificate,

$354,000: Provided, That advances or repayments or transfers from

this appropriation may be made to any department or agency for expenses of carrying out such activities.

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COUNCIL OF ECONOMIC ADVISERS

SALARIES AND EXPENSES

For necessary expenses of the Council of Economic Advisors in

carrying out its functions under the Employment Act of 1946 (15

U.S.C. 1021), $4,110,000.

OFFICE OF POLICY DEVELOPMENT

SALARIES AND EXPENSES

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

$4,032,000.

NATIONAL SECURITY COUNCIL

SALARIES AND EXPENSES

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

OFFICE OF ADMINISTRATION

SALARIES AND EXPENSES

For necessary expenses of the Office of Administration, including services as authorized by 5 U.S.C. 3109 and 3 U.S.C. 107, and

hire of passenger motor vehicles, $43,737,000, of which $9,905,000

shall be available until September 30, 2002 for a capital investment

plan which provides for the continued modernization of the information technology infrastructure.

OFFICE OF MANAGEMENT AND BUDGET

SALARIES AND EXPENSES

For necessary expenses of the Office of Management and Budget, including hire of passenger motor vehicles and services as authorized by 5 U.S.C. 3109, $68,786,000, of which not to exceed

$5,000,000 shall be available to carry out the provisions of chapter

35 of title 44, United States Code: Provided, That, as provided in

31 U.S.C. 1301(a), appropriations shall be applied only to the objects for which appropriations were made except as otherwise provided by law: Provided further, That none of the funds appropriated

in this Act for the Office of Management and Budget may be used

for the purpose of reviewing any agricultural marketing orders or

any activities or regulations under the provisions of the Agricultural

Marketing Agreement Act of 1937 (7 U.S.C. 601 et seq.): Provided

further, That none of the funds made available for the Office of

Management and Budget by this Act may be expended for the altering of the transcript of actual testimony of witnesses, except for testimony of officials of the Office of Management and Budget, before the

Committees on Appropriations or the Committees on Veterans’ Affairs or their subcommittees: Provided further, That the preceding

shall not apply to printed hearings released by the Committees on

Appropriations or the Committees on Veterans’ Affairs.

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OFFICE OF NATIONAL DRUG CONTROL POLICY

SALARIES AND EXPENSES

(INCLUDING TRANSFER OF FUNDS)

For necessary expenses of the Office of National Drug Control

Policy; for research activities pursuant to the Office of National

Drug Control Policy Reauthorization Act of 1998 (title VII of division C of Public Law 105–277); not to exceed $8,000 for official reception and representation expenses; and for participation in joint

projects or in the provision of services on matters of mutual interest

with nonprofit, research, or public organizations or agencies, with

or without reimbursement, $24,759,000, of which $2,100,000 shall

remain available until expended, consisting of $1,100,000 for policy

research and evaluation, and $1,000,000 for the National Alliance

for Model State Drug Laws, and up to $600,000 for the evaluation

of the Drug-Free Communities Act: Provided, That the Office is authorized to accept, hold, administer, and utilize gifts, both real and

personal, public and private, without fiscal year limitation, for the

purpose of aiding or facilitating the work of the Office.

COUNTERDRUG TECHNOLOGY ASSESSMENT CENTER

(INCLUDING TRANSFER OF FUNDS)

For necessary expenses for the Counterdrug Technology Assessment Center for research activities pursuant to the Office of National Drug Control Policy Reauthorization Act of 1998 (title VII of

Division C of Public Law 105–277), $29,053,000, which shall remain available until expended, consisting of $15,803,000 for counternarcotics research and development projects, and $13,250,000 for

the continued operation of the technology transfer program: Provided, That the $15,803,000 for counternarcotics research and development projects shall be available for transfer to other Federal departments or agencies.

FEDERAL DRUG CONTROL PROGRAMS

HIGH INTENSITY DRUG TRAFFICKING AREAS PROGRAM

(INCLUDING TRANSFER OF FUNDS)

For necessary expenses of the Office of National Drug Control

Policy’s High Intensity Drug Trafficking Areas Program,

$206,500,000 for drug control activities consistent with the approved

strategy for each of the designated High Intensity Drug Trafficking

Areas, of which no less than 51 percent shall be transferred to State

and local entities for drug control activities, which shall be obligated within 120 days of the date of the enactment of this Act: Provided, That up to 49 percent, to remain available until September

30, 2002, may be transferred to Federal agencies and departments

at a rate to be determined by the Director: Provided further, That,

of this latter amount, $1,800,000 shall be used for auditing services:

Provided further, That HIDTAs designated as of September 30,

2000, shall be funded at fiscal year 2000 levels unless the Director

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ities 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 antidoping program no later than 30 days after the enactment of this

Act: Provided further, That of the funds provided, $40,000,000 shall

be to continue a program of matching grants to drug-free communities, as authorized in the Drug-Free Communities Act of 1997:

Provided further, That of the funds provided, $1,000,000 shall be

available to the National Drug Court Institute.

This title may be cited as the ‘‘Executive Office Appropriations

Act, 2001’’.

TITLE IV—INDEPENDENT AGENCIES

COMMITTEE FOR PURCHASE FROM PEOPLE WHO ARE BLIND OR

SEVERELY DISABLED

SALARIES AND EXPENSES

For necessary expenses of the Committee for Purchase From

People Who Are Blind or Severely Disabled established by the Act

of June 23, 1971, Public Law 92–28, $4,158,000.

FEDERAL ELECTION COMMISSION

SALARIES AND EXPENSES

For necessary expenses to carry out the provisions of the Federal

Election Campaign Act of 1971, as amended, $40,500,000, of which

no less than $4,689,500 shall be available for internal automated

data processing systems, and of which not to exceed $5,000 shall be

available for reception and representation expenses.

FEDERAL LABOR RELATIONS AUTHORITY

SALARIES AND EXPENSES

For necessary expenses to carry out functions of the Federal

Labor Relations Authority, pursuant to Reorganization Plan Numbered 2 of 1978, and the Civil Service Reform Act of 1978, including

services authorized by 5 U.S.C. 3109, including hire of experts and

consultants, hire of passenger motor vehicles, and rental of conference rooms in the District of Columbia and elsewhere,

$25,058,000: Provided, That public members of the Federal Service

Impasses Panel may be paid travel expenses and per diem in lieu

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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 nonFederal participants at labor-management relations conferences

shall be credited to and merged with this account, to be available

without further appropriation for the costs of carrying out these conferences.

GENERAL SERVICES ADMINISTRATION

REAL PROPERTY ACTIVITIES

FEDERAL BUILDINGS FUND

LIMITATIONS ON AVAILABILITY OF REVENUE

(INCLUDING TRANSFER OF FUNDS)

For an additional amount to be deposited in, and to be used for

the purposes of, the Fund established pursuant to section 210(f) of

the Federal Property and Administration Act of 1949, as amended

(40 U.S.C. 490(f)), $464,154,000. The revenues and collections deposited into the Fund shall be available for necessary expenses of

real property management and related activities not otherwise provided for, including operation, maintenance, and protection of federally owned and leased buildings; rental of buildings in the District

of Columbia; restoration of leased premises; moving governmental

agencies (including space adjustments and telecommunications relocation expenses) in connection with the assignment, allocation and

transfer of space; contractual services incident to cleaning or servicing buildings, and moving; repair and alteration of federally

owned buildings including grounds, approaches and appurtenances;

care and safeguarding of sites; maintenance, preservation, demolition, and equipment; acquisition of buildings and sites by purchase,

condemnation, or as otherwise authorized by law; acquisition of options to purchase buildings and sites; conversion and extension of

federally owned buildings; preliminary planning and design of

projects by contract or otherwise; construction of new buildings (including equipment for such buildings); and payment of principal,

interest, and any other obligations for public buildings acquired by

installment purchase and purchase contract; in the aggregate

amount of $5,971,509,000 of which (1) $472,176,000 shall remain

available until expended for construction (including funds for sites

and expenses and associated design and construction services) of

additional projects at the following locations: California, Los Angeles, U.S. Courthouse; District of Columbia, Bureau of Alcohol, Tobacco and Firearms Headquarters; Florida, Saint Petersburg, Combined Law Enforcement Facility; Maryland, Montgomery County,

Food and Drug Administration Consolidation; Michigan, Sault St.

Marie, Border Station; Mississippi, Biloxi-Gulfport, U.S. Courthouse; Montana, Eureka/Roosville, Border Station; Virginia, Richmond, U.S. Courthouse; Washington, Seattle, U.S. Courthouse: Provided, That funding for any project identified above may be exceeded to the extent that savings are effected in other such projects, but

not to exceed 10 percent of the amounts included in an approved

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prospectus, if required, unless advance approval is obtained from

the Committees on Appropriations of a greater amount: Provided

further, That all funds for direct construction projects shall expire

on September 30, 2002, and remain in the Federal Buildings Fund

except for funds for projects as to which funds for design or other

funds have been obligated in whole or in part prior to such date;

(2) $671,193,000 shall remain available until expended for repairs

and alterations which includes associated design and construction

services: Provided further, That funds in the Federal Buildings

Fund for Repairs and Alterations shall, for prospectus projects, be

limited to the amount by project, as follows, except each project may

be increased by an amount not to exceed 10 percent unless advance

approval is obtained from the Committees on Appropriations of a

greater amount:

Repairs and alterations:

Arizona:

Phoenix, Federal Building Courthouse, $26,962,000

California: Santa Ana, Federal Building, $27,864,000

District of Columbia:

Internal Revenue Service Headquarters (Phase 1), $31,780,000

Main State Building, (Phase 3), $28,775,000

Maryland: Woodlawn, SSA National Computer Center, $4,285,000

Michigan: Detroit, McNamara Federal Building, $26,999,000

Missouri:

Kansas City, Richard Bolling Federal Building, $25,882,000

Kansas City, Federal Building, 8930 Ward Parkway, $8,964,000

Nebraska:

Omaha, Zorinsky Federal Building, $45,960,000

New York:

New York City, 40 Foley Square, $5,037,000

Ohio:

Cincinnati, Potter Stewart U.S. Courthouse,

$18,434,000

Pennsylvania:

Pittsburgh, U.S. Post Office-Courthouse, $54,144,000

Utah:

Salt Lake City, Bennett Federal Building, $21,199,000

Virginia:

Reston, J.W. Powell Federal Building (Phase 2),

$22,993,000

Nationwide:

Design Program, $21,915,000

Energy Program, $5,000,000

Glass Fragment Retention Program, $5,000,000

Basic Repairs and Alterations, $290,000,000:

Provided further, That additional projects for which prospectuses

have been fully approved may be funded under this category only

if advance notice is transmitted to the Committees on AppropriaVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00354 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.003 pfrm03 PsN: HR1033
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tions: Provided further, That the amounts provided in this or any

prior Act for ‘‘Repairs and Alterations’’ may be used to fund costs

associated with implementing security improvements to buildings

necessary to meet the minimum standards for security in accordance with current law and in compliance with the reprogramming

guidelines of the appropriate Committees of the House and Senate:

Provided further, That the difference between the funds appropriated and expended on any projects in this or any prior Act, under

the heading ‘‘Repairs and Alterations’’, may be transferred to Basic

Repairs and Alterations or used to fund authorized increases in prospectus projects: Provided further, That all funds for repairs and alterations prospectus projects shall expire on September 30, 2002,

and remain in the Federal Buildings Fund except funds for projects

as to which funds for design or other funds have been obligated in

whole or in part prior to such date: Provided further, That the

amount provided in this or any prior Act for Basic Repairs and Alterations may be used to pay claims against the Government arising

from any projects under the heading ‘‘Repairs and Alterations’’ or

used to fund authorized increases in prospectus projects; (3)

$185,369,000 for installment acquisition payments including payments on purchase contracts which shall remain available until expended; (4) $2,944,905,000 for rental of space which shall remain

available until expended; and (5) $1,624,771,000 for building operations which shall remain available until expended: Provided further, That in addition to amounts made available herein,

$276,400,000 shall be deposited to the Fund, to become available on

October 1, 2001, and remain available until expended for the following construction projects (including funds for sites and expenses

and associated design and construction services): District of Columbia, U.S. Courthouse Annex; Florida, Miami, U.S. Courthouse; Massachusetts, Springfield, U.S. Courthouse; New York, Buffalo, U.S.

Courthouse: Provided further, That funding for any project identified above may be exceeded to the extent that savings are effected

in other such projects, but not to exceed 10 percent of the amounts

included in an approved prospectus, if required, unless advance approval is obtained from the Committees on Appropriations of a

greater amount: Provided further, That funds available to the General Services Administration shall not be available for expenses of

any construction, repair, alteration and acquisition project for

which a prospectus, if required by the Public Buildings Act of 1959,

as amended, has not been approved, except that necessary funds

may be expended for each project for required expenses for the development of a proposed prospectus: Provided further, That funds

available in the Federal Buildings Fund may be expended for emergency repairs when advance approval is obtained from the Committees on Appropriations: Provided further, That amounts necessary to

provide reimbursable special services to other agencies under section

210(f)(6) of the Federal Property and Administrative Services Act of

1949, as amended (40 U.S.C. 490(f)(6)) and amounts to provide

such reimbursable fencing, lighting, guard booths, and other facilities on private or other property not in Government ownership or

control as may be appropriate to enable the United States Secret

Service to perform its protective functions pursuant to 18 U.S.C.

3056, shall be available from such revenues and collections: ProVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00355 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.003 pfrm03 PsN: HR1033
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vided further, That revenues and collections and any other sums accruing to this Fund during fiscal year 2001, excluding reimbursements under section 210(f)(6) of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 490(f)(6)) in excess of

$5,971,509,000 shall remain in the Fund and shall not be available

for expenditure except as authorized in appropriations Acts.

POLICY AND OPERATIONS

For expenses authorized by law, not otherwise provided for, for

Government-wide policy and oversight activities associated with

asset management activities; utilization and donation of surplus

personal property; transportation; procurement and supply; Government-wide responsibilities relating to automated data management,

telecommunications, information resources management, and related technology activities; utilization survey, deed compliance inspection, appraisal, environmental and cultural analysis, and land

use planning functions pertaining to excess and surplus real property; agency-wide policy direction; Board of Contract Appeals; accounting, records management, and other support services incident

to adjudication of Indian Tribal Claims by the United States Court

of Federal Claims; services as authorized by 5 U.S.C. 3109; and not

to exceed $5,000 for official reception and representation expenses,

$123,920,000, of which $27,301,000 shall remain available until expended: Provided, That none of the funds appropriated from this

Act shall be available to convert the Old Post Office at 1100 Pennsylvania Avenue in Northwest Washington, D.C., from office use to

any other use until a comprehensive plan, which shall include

street-level retail use, has been approved by the Senate Committee

on Appropriations, the House Committee on Transportation and Infrastructure, and the Senate Committee on Environment and Public

Works: Provided further, That no funds from this Act shall be available to acquire by purchase, condemnation, or otherwise the leasehold rights of the existing lease with private parties at the Old Post

Office prior to the approval of the comprehensive plan by the Senate

Committee on Appropriations, the House Committee on Transportation and Infrastructure, and the Senate Committee on Environment and Public Works.

OFFICE OF INSPECTOR GENERAL

For necessary expenses of the Office of Inspector General and

services authorized by 5 U.S.C. 3109, $34,520,000: Provided, That

not to exceed $15,000 shall be available for payment for information

and detection of fraud against the Government, including payment

for recovery of stolen Government property: Provided further, That

not to exceed $2,500 shall be available for awards to employees of

other Federal agencies and private citizens in recognition of efforts

and initiatives resulting in enhanced Office of Inspector General effectiveness.

ALLOWANCES AND OFFICE STAFF FOR FORMER PRESIDENTS

(INCLUDING TRANSFER OF FUNDS)

For carrying out the provisions of the Act of August 25, 1958,

as amended (3 U.S.C. 102 note), and Public Law 95–138,

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$2,517,000: Provided, That the Administrator of General Services

shall transfer to the Secretary of the Treasury such sums as may

be necessary to carry out the provisions of such Acts.

EXPENSES, PRESIDENTIAL TRANSITION

For expenses necessary to carry out the Presidential Transition

Act of 1963, as amended, $7,100,000.

GENERAL SERVICES ADMINISTRATION—GENERAL PROVISIONS

SEC. 401. The appropriate appropriation or fund available to

the General Services Administration shall be credited with the cost

of operation, protection, maintenance, upkeep, repair, and improvement, included as part of rentals received from Government corporations pursuant to law (40 U.S.C. 129).

SEC. 402. Funds available to the General Services Administration shall be available for the hire of passenger motor vehicles.

SEC. 403. Funds in the Federal Buildings Fund made available

for fiscal year 2001 for Federal Buildings Fund activities may be

transferred between such activities only to the extent necessary to

meet program requirements: Provided, That any proposed transfers

shall be approved in advance by the Committees on Appropriations.

SEC. 404. No funds made available by this Act shall be used

to transmit a fiscal year 2002 request for United States Courthouse

construction that: (1) does not meet the design guide standards for

construction as established and approved by the General Services

Administration, the Judicial Conference of the United States, and

the Office of Management and Budget; and (2) does not reflect the

priorities of the Judicial Conference of the United States as set out

in its approved 5–year construction plan: Provided, That the fiscal

year 2002 request must be accompanied by a standardized courtroom utilization study of each facility to be constructed, replaced, or

expanded.

SEC. 405. None of the funds provided in this Act may be used

to increase the amount of occupiable square feet, provide cleaning

services, security enhancements, or any other service usually provided through the Federal Buildings Fund, to any agency that does

not pay the rate per square foot assessment for space and services

as determined by the General Services Administration in compliance with the Public Buildings Amendments Act of 1972 (Public

Law 92–313).

SEC. 406. Funds provided to other Government agencies by the

Information Technology Fund, General Services Administration,

under 40 U.S.C. 757 and sections 5124(b) and 5128 of Public Law

104–106, Information Technology Management Reform Act of 1996,

for performance of pilot information technology projects which have

potential for Government-wide benefits and savings, may be repaid

to this Fund from any savings actually incurred by these projects

or other funding, to the extent feasible.

SEC. 407. From funds made available under the heading ‘‘Federal Buildings Fund, Limitations on Availability of Revenue’’,

claims against the Government of less than $250,000 arising from

direct construction projects and acquisition of buildings may be liqVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00357 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.003 pfrm03 PsN: HR1033
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uidated 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 BUILD- ING AND UNITED STATES COURTHOUSE. (a) The Federal building

and courthouse located at 102 North 4th Street, Grand Forks, North

Dakota, shall be known and designated as the ‘‘Ronald N. Davies

Federal Building and United States Courthouse’’.

(b) Any reference in a law, map, regulation, document, paper,

or other record of the United States to the Federal building and

courthouse referred to in section 1 shall be deemed to be a reference

to the Ronald N. Davies Federal Building and United States Courthouse.

SEC. 410. From the funds made available under the heading

‘‘Federal Buildings Fund Limitations on Revenue’’, in addition to

amounts provided in budget activities above, up to $2,500,000 shall

be available for the construction of a road and acquisition of the

property necessary for construction of said road and associated port

of entry facilities: Provided, That said property shall include a 125

foot wide right of way beginning approximately 700 feet east of

Highway 11 at the northeast corner of the existing port facilities

and going north approximately 4,750 feet and approximately 10.22

acres adjacent to the port of entry in Township 29 S. Range 8W.,

Section 14: Provided further, That construction of the road shall

occur only after this property is deeded and conveyed to the United

States by and through the General Services Administration without

reimbursement or cost to the United States at the election of its current landholder: Provided further, That notwithstanding any other

provision of law, and subject to the foregoing conditions, the Administrator of General Services shall construct a road to the Columbus,

New Mexico Port of Entry Station on the property, connecting the

port with a road to be built by the County of Luna, New Mexico to

connect to State Highway 11: Provided further, That notwithstanding any other provision of law, Luna County shall construct

the roadway from State Highway 11 to the terminus of the northbound road to be constructed by the General Services Administration in time for completion of the road to be constructed by the General Services Administration in time for completion of the road to

be constructed by the General Services Administration: Provided

further, That upon completion of the construction of the road by the

General Services Administration, and notwithstanding any other

provision of law, the Administrator of General Services shall convey

to the municipality of Luna County, New Mexico, without reimbursement, all right, title, and interest of the United States to that

portion of the property constituting the improved road and standard

county road right of way which is not required for the operation of

the port of entry: Provided further, That the General Services Administration on behalf of the United States upon conveyance of the

property to the municipality of Luna, New Mexico, shall retain the

balance of the property located adjacent to the port, consisting of approximately 12 acres, to be owned or otherwise managed by the Administrator pursuant to the Federal Property and Administrative

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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.

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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.

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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 GenVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00361 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.003 pfrm03 PsN: HR1033
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eral is authorized to rent conference rooms in the District of Columbia and elsewhere.

GOVERNMENT PAYMENT FOR ANNUITANTS, EMPLOYEES HEALTH

BENEFITS

For payment of Government contributions with respect to retired employees, as authorized by chapter 89 of title 5, United States

Code, and the Retired Federal Employees Health Benefits Act (74

Stat. 849), as amended, such sums as may be necessary.

GOVERNMENT PAYMENT FOR ANNUITANTS, EMPLOYEE LIFE

INSURANCE

For payment of Government contributions with respect to employees retiring after December 31, 1989, as required by chapter 87

of title 5, United States Code, such sums as may be necessary.

PAYMENT TO CIVIL SERVICE RETIREMENT AND DISABILITY FUND

For financing the unfunded liability of new and increased annuity benefits becoming effective on or after October 20, 1969, as authorized by 5 U.S.C. 8348, and annuities under special Acts to be

credited to the Civil Service Retirement and Disability Fund, such

sums as may be necessary: Provided, That annuities authorized by

the Act of May 29, 1944, as amended, and the Act of August 19,

1950, as amended (33 U.S.C. 771–775), may hereafter be paid out

of the Civil Service Retirement and Disability Fund.

OFFICE OF SPECIAL COUNSEL

SALARIES AND EXPENSES

For necessary expenses to carry out functions of the Office of

Special Counsel pursuant to Reorganization Plan Numbered 2 of

1978, the Civil Service Reform Act of 1978 (Public Law 95–454), the

Whistleblower Protection Act of 1989 (Public Law 101–12), Public

Law 103–424, and the Uniformed Services Employment and Reemployment Act of 1994 (Public Law 103–353), including services as

authorized by 5 U.S.C. 3109, payment of fees and expenses for witnesses, rental of conference rooms in the District of Columbia and

elsewhere, and hire of passenger motor vehicles, $11,147,000.

UNITED STATES TAX COURT

SALARIES AND EXPENSES

For necessary expenses, including contract reporting and other

services as authorized by 5 U.S.C. 3109, $37,305,000: Provided,

That travel expenses of the judges shall be paid upon the written

certificate of the judge.

This title may be cited as the ‘‘Independent Agencies Appropriations Act, 2001’’.

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TITLE V—GENERAL PROVISIONS

THIS ACT

SEC. 501. No part of any appropriation contained in this Act

shall remain available for obligation beyond the current fiscal year

unless expressly so provided herein.

SEC. 502. The expenditure of any appropriation under this Act

for any consulting service through procurement contract, pursuant

to 5 U.S.C. 3109, shall be limited to those contracts where such expenditures are a matter of public record and available for public inspection, except where otherwise provided under existing law, or

under existing Executive order issued pursuant to existing law.

SEC. 503. None of the funds made available by this Act shall

be available for any activity or for paying the salary of any Government employee where funding an activity or paying a salary to a

Government employee would result in a decision, determination,

rule, regulation, or policy that would prohibit the enforcement of

section 307 of the Tariff Act of 1930.

SEC. 504. None of the funds made available by this Act shall

be available in fiscal year 2001 for the purpose of transferring control over the Federal Law Enforcement Training Center located at

Glynco, Georgia, and Artesia, New Mexico, out of the Department of

the Treasury.

SEC. 505. No part of any appropriation contained in this Act

shall be available to pay the salary for any person filling a position,

other than a temporary position, formerly held by an employee who

has left to enter the Armed Forces of the United States and has satisfactorily completed his period of active military or naval service,

and has within 90 days after his release from such service or from

hospitalization continuing after discharge for a period of not more

than 1 year, made application for restoration to his former position

and has been certified by the Office of Personnel Management as

still qualified to perform the duties of his former position and has

not been restored thereto.

SEC. 506. No funds appropriated pursuant to this Act may be

expended by an entity unless the entity agrees that in expending the

assistance the entity will comply with sections 2 through 4 of the Act

of March 3, 1933 (41 U.S.C. 10a–10c, popularly known as the ‘‘Buy

American Act’’).

SEC. 507. (a) PURCHASE OF AMERICAN-MADE EQUIPMENT AND

PRODUCTS.—In the case of any equipment or products that may be

authorized to be purchased with financial assistance provided

under this Act, it is the sense of the Congress that entities receiving

such assistance should, in expending the assistance, purchase only

American-made equipment and products.

(b) NOTICE TO RECIPIENTS OF ASSISTANCE.—In providing financial assistance under this Act, the Secretary of the Treasury

shall provide to each recipient of the assistance a notice describing

the statement made in subsection (a) by the Congress.

SEC. 508. If it has been finally determined by a court or Federal

agency that any person intentionally affixed a label bearing a

‘‘Made in America’’ inscription, or any inscription with the same

meaning, to any product sold in or shipped to the United States

that is not made in the United States, such person shall be ineliVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00363 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.003 pfrm03 PsN: HR1033
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gible to receive any contract or subcontract made with funds provided pursuant to this Act, pursuant to the debarment, suspension,

and ineligibility procedures described in sections 9.400 through

9.409 of title 48, Code of Federal Regulations.

SEC. 509. No funds appropriated by this Act shall be available

to pay for an abortion, or the administrative expenses in connection

with any health plan under the Federal employees health benefit

program which provides any benefits or coverage for abortions.

SEC. 510. The provision of section 509 shall not apply where the

life of the mother would be endangered if the fetus were carried to

term, or the pregnancy is the result of an act of rape or incest.

SEC. 511. Except as otherwise specifically provided by law, not

to exceed 50 percent of unobligated balances remaining available at

the end of fiscal year 2001 from appropriations made available for

salaries and expenses for fiscal year 2001 in this Act, shall remain

available through September 30, 2002, for each such account for the

purposes authorized: Provided, That a request shall be submitted to

the Committees on Appropriations for approval prior to the expenditure of such funds: Provided further, That these requests shall be

made in compliance with reprogramming guidelines.

SEC. 512. None of the funds made available in this Act may be

used by the Executive Office of the President to request from the

Federal Bureau of Investigation any official background investigation report on any individual, except when—

(1) such individual has given his or her express written

consent for such request not more than 6 months prior to the

date of such request and during the same presidential administration; or

(2) such request is required due to extraordinary circumstances involving national security.

SEC. 513. The cost accounting standards promulgated under

section 26 of the Office of Federal Procurement Policy Act (Public

Law 93–400; 41 U.S.C. 422) shall not apply with respect to a contract under the Federal Employees Health Benefits Program established under chapter 89 of title 5, United States Code.

SEC. 514. (a) IN GENERAL.—As soon as practicable after the

date of the enactment of this Act, the Archivist of the United States

shall transfer to the Gerald R. Ford Foundation, as trustee, all

right, title, and interest of the United States in and to the approximately 2.3 acres of land located within Grand Rapids, Michigan,

and further described in subsection (b), such grant to be in trust,

with the beneficiary being the National Archives and Records Administration, for the purpose of supporting the facilities and programs of the Gerald R. Ford Museum in Grand Rapids, Michigan,

and the Gerald R. Ford Library in Ann Arbor, Michigan, in accordance with a trust agreement to be agreed upon by the Archivist and

the Gerald R. Ford Foundation.

(b) LAND DESCRIPTION.—The land to be transferred pursuant to

subsection (a) is described as follows:

The following premises in the City of Grand Rapids, County of

Kent, State of Michigan, described as:

That part of Block 2, Converse Plat, and that part of Block 2

of J.W. Converse Replatted Addition, and that part of Government

Lot 1 of Section 25, T7N, R12W, City of Grand Rapids, Kent CounVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00364 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.003 pfrm03 PsN: HR1033
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ty, Michigan, described as: BEGINNING at the NE corner of Lot 1

of Block 2 of Converse Plat; thence East 245.0 feet along the South

line of Bridge Street; thence South 230.0 feet along a line which is

parallel with and 170 feet East from the East line of Front Avenue

as originally platted; thence West 207.5 feet parallel with the South

line of Bridge Street; thence South along the centerline of vacated

Front Avenue 109 feet more or less to the extended centerline of vacated Douglas Street; thence West along the centerline of vacated

Douglas Street 237.5 feet more or less to the East line of Scribner

Avenue; thence North along the East line of Scribner Avenue 327

feet more or less to a point which is 7.0 feet South from the NW corner of Lot 8 of Block 2 of Converse Plat; thence Easterly 200 feet

more or less to the place of beginning, also described as:

Parcel A—Lots 9 & 10, Block 2 of Converse Plat, being the subdivision of Government Lots 1 & 2, Section 25, T7N, R12W; also

Lots 11–24, Block 2 of J.W. Converse Replatted Addition; also part

of N 1⁄2 of Section 25, T7N, R12W commencing at SE corner Lot 24,

Block 2 of J.W. Converse Replatted Addition, thence N to NE corner

of Lot 9 of Converse Plat, thence E 16 feet, thence S to SW corner

of Lot 23 of J.W. Converse Replatted Addition, thence W 16 feet to

beginning.

Parcel B—Part of Section 25, T7N, R12W, commencing on S

line of Bridge Street 50 feet E of E line of Front Avenue, thence S

107.85 feet, thence 77 feet, thence N to a point on S line of said

street which is 80 feet E of beginning, thence W to beginning.

Parcel C—Part of Section 25, T7N, R12W, commencing at SE

corner Bridge Street & Front Avenue, thence E 50 feet, thence S

107.85 feet to alley, thence W 50 feet to E line Front Avenue, thence

N 106.81 feet to beginning.

Parcel D—Part of Government Lot 1, Section 25, T7N, R12W,

commencing at a point on S line of Bridge Street (66′ wide) 170 feet

E of E line of Front Avenue (75′ wide), thence S 230 feet parallel

with Front Avenue, thence W 170 feet parallel with Bridge Street to

E line of Front Avenue, thence N along said line to a point 106.81

feet S of intersection of said line with extension of N & S line of

Bridge Street, thence E 127 feet, thence northerly to a point on S

line of Bridge Street 130 feet E of E line of Front Avenue, thence

E along S line of Bridge Street to beginning.

Parcel E—Lots 1 through 8 of Block 2 of Converse Plat, being

the subdivision of Government Lots 1 and 2, Section 25, T7N,

R12W.

Also part of N 1⁄2 of Section 25, T7N, R12W, commencing at

NW corner of Lot 9, Block 2 of J.W. Converse Replatted Addition;

thence N 15 feet to SW corner of Lot 8; thence E 200 feet to SE corner Lot 1; thence S 15 feet to NE corner of Lot 10; thence W 200

feet to beginning.

Together with any portion of vacated streets and alleys that

have become part of the above property.

(c) TERMS AND CONDITIONS.—

(1) COMPENSATION.—The land transferred pursuant to subsection (a) shall be transferred without compensation to the

United States.

(2) APPOINTMENT OF SUCCESSOR TRUSTEE.—In the event

that the Gerald R. Ford Foundation for any reason is unable

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or unwilling to continue to serve as trustee, the Archivist of the

United States is authorized to appoint a successor trustee.

(3) REVERSIONARY INTEREST.—If the Archivist of the United

States determines that the Gerald R. Ford Foundation (or a

successor trustee appointed under paragraph (2)) has breached

its fiduciary duty under the trust agreement entered into pursuant to this section, the land transferred pursuant to subsection

(a) shall revert to the United States under the administrative

jurisdiction of the Archivist.

SEC. 515. (a) IN GENERAL.—The Director of the Office of Management and Budget shall, by not later than September 30, 2001,

and with public and Federal agency involvement, issue guidelines

under sections 3504(d)(1) and 3516 of title 44, United States Code,

that provide policy and procedural guidance to Federal agencies for

ensuring and maximizing the quality, objectivity, utility, and integrity of information (including statistical information) disseminated

by Federal agencies in fulfillment of the purposes and provisions of

chapter 35 of title 44, United States Code, commonly referred to as

the Paperwork Reduction Act.

(b) CONTENT OF GUIDELINES.—The guidelines under subsection

(a) shall—

(1) apply to the sharing by Federal agencies of, and access

to, information disseminated by Federal agencies; and

(2) require that each Federal agency to which the guidelines

apply—

(A) issue guidelines ensuring and maximizing the quality, objectivity, utility, and integrity of information (including statistical information) disseminated by the agency, by

not later than 1 year after the date of issuance of the guidelines under subsection (a);

(B) establish administrative mechanisms allowing affected persons to seek and obtain correction of information

maintained and disseminated by the agency that does not

comply with the guidelines issued under subsection (a); and

(C) report periodically to the Director—

(i) the number and nature of complaints received

by the agency regarding the accuracy of information

disseminated by the agency; and

(ii) how such complaints were handled by the

agency.

SEC. 516. For the purpose of resolving litigation and implementing any settlement agreements regarding the nonforeign area

cost-of-living allowance program, the Office of Personnel Management may accept and utilize (without regard to any restriction on

unanticipated travel expenses imposed in an Appropriations Act)

funds made available to the Office pursuant to court approval.

SEC. 517. None of the funds appropriated by this Act shall be

used to propose or issue rules, regulations, decrees, or orders for the

purpose of implementation, or in preparation for implementation, of

the Kyoto Protocol, which was adopted on December 11, 1997, in

Kyoto, Japan, at the Third Conference of the Parties to the United

Nations Framework Convention on Climate Change, which has not

been submitted to the Senate for advice and consent to ratification

pursuant to article II, section 2, clause 2, of the United States ConVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00366 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.003 pfrm03 PsN: HR1033
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stitution, and which has not entered into force pursuant to article

25 of the Protocol.

SEC. 518. Not later than July 1, 2001, the Director of the Office

of Management and Budget shall submit a report to the Committee

on Appropriations and the Committee on Governmental Affairs in

the Senate and the Committee on Appropriations and the Committee

on Government Reform of the House of Representatives that (1) evaluates, for each agency, the extent to which implementation of chapter 35 of title 31, United States Code, as amended by the Paperwork

Reduction Act of 1995 (Public Law 104–13), has reduced burden imposed by rules issued by the agency, including the burden imposed

by each major rule issued by the agency; (2) includes a determination, based on such evaluation, of the need for additional procedures

to ensure achievement of the purposes of that chapter, as set forth

in section 3501 of title 31, United States Code, and evaluates the

burden imposed by each major rule that imposes more than

10,000,000 hours of burden, and identifies specific reductions expected to be achieved in each of fiscal years 2001 and 2002 in the

burden imposed by all rules issued by each agency that issued such

a major rule.

TITLE VI—GENERAL PROVISIONS

DEPARTMENTS, AGENCIES, AND CORPORATIONS

SEC. 601. Funds appropriated in this or any other Act may be

used to pay travel to the United States for the immediate family of

employees serving abroad in cases of death or life threatening illness of said employee.

SEC. 602. No department, agency, or instrumentality of the

United States receiving appropriated funds under this or any other

Act for fiscal year 2001 shall obligate or expend any such funds, unless such department, agency, or instrumentality has in place, and

will continue to administer in good faith, a written policy designed

to ensure that all of its workplaces are free from the illegal use, possession, or distribution of controlled substances (as defined in the

Controlled Substances Act) by the officers and employees of such department, agency, or instrumentality.

SEC. 603. Unless otherwise specifically provided, the maximum

amount allowable during the current fiscal year in accordance with

section 16 of the Act of August 2, 1946 (60 Stat. 810), for the purchase of any passenger motor vehicle (exclusive of buses, ambulances, law enforcement, and undercover surveillance vehicles), is

hereby fixed at $8,100 except station wagons for which the maximum shall be $9,100: Provided, That these limits may be exceeded

by not to exceed $3,700 for police-type vehicles, and by not to exceed

$4,000 for special heavy-duty vehicles: Provided further, That the

limits set forth in this section may not be exceeded by more than 5

percent for electric or hybrid vehicles purchased for demonstration

under the provisions of the Electric and Hybrid Vehicle Research,

Development, and Demonstration Act of 1976: Provided further,

That the limits set forth in this section may be exceeded by the incremental cost of clean alternative fuels vehicles acquired pursuant

to Public Law 101–549 over the cost of comparable conventionally

fueled vehicles.

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SEC. 604. Appropriations of the executive departments and

independent establishments for the current fiscal year available for

expenses of travel, or for the expenses of the activity concerned, are

hereby made available for quarters allowances and cost-of-living allowances, in accordance with 5 U.S.C. 5922–5924.

SEC. 605. Unless otherwise specified during the current fiscal

year, no part of any appropriation contained in this or any other Act

shall be used to pay the compensation of any officer or employee of

the Government of the United States (including any agency the majority of the stock of which is owned by the Government of the

United States) whose post of duty is in the continental United

States unless such person: (1) is a citizen of the United States; (2)

is a person in the service of the United States on the date of the enactment of this Act who, being eligible for citizenship, has filed a

declaration of intention to become a citizen of the United States

prior to such date and is actually residing in the United States; (3)

is a person who owes allegiance to the United States; (4) is an alien

from Cuba, Poland, South Vietnam, the countries of the former Soviet Union, or the Baltic countries lawfully admitted to the United

States for permanent residence; (5) is a South Vietnamese, Cambodian, or Laotian refugee paroled in the United States after January 1, 1975; or (6) is a national of the People’s Republic of China

who qualifies for adjustment of status pursuant to the Chinese Student Protection Act of 1992: Provided, That for the purpose of this

section, an affidavit signed by any such person shall be considered

prima facie evidence that the requirements of this section with respect to his or her status have been complied with: Provided further,

That any person making a false affidavit shall be guilty of a felony,

and, upon conviction, shall be fined no more than $4,000 or imprisoned for not more than 1 year, or both: Provided further, That the

above penal clause shall be in addition to, and not in substitution

for, any other provisions of existing law: Provided further, That any

payment made to any officer or employee contrary to the provisions

of this section shall be recoverable in action by the Federal Government. This section shall not apply to citizens of Ireland, Israel, or

the Republic of the Philippines, or to nationals of those countries allied with the United States in a current defense effort, or to international broadcasters employed by the United States Information

Agency, or to temporary employment of translators, or to temporary

employment in the field service (not to exceed 60 days) as a result

of emergencies.

SEC. 606. Appropriations available to any department or agency

during the current fiscal year for necessary expenses, including

maintenance or operating expenses, shall also be available for payment to the General Services Administration for charges for space

and services and those expenses of renovation and alteration of

buildings and facilities which constitute public improvements performed in accordance with the Public Buildings Act of 1959 (73

Stat. 749), the Public Buildings Amendments of 1972 (87 Stat. 216),

or other applicable law.

SEC. 607. In addition to funds provided in this or any other

Act, all Federal agencies are authorized to receive and use funds resulting from the sale of materials, including Federal records disposed of pursuant to a records schedule recovered through recycling

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or waste prevention programs. Such funds shall be available until

expended for the following purposes:

(1) Acquisition, waste reduction and prevention, and recycling programs as described in Executive Order No. 13101 (September 14, 1998), including any such programs adopted prior

to the effective date of the Executive order.

(2) Other Federal agency environmental management programs, including, but not limited to, the development and implementation of hazardous waste management and pollution

prevention programs.

(3) Other employee programs as authorized by law or as

deemed appropriate by the head of the Federal agency.

SEC. 608. Funds made available by this or any other Act for administrative expenses in the current fiscal year of the corporations

and agencies subject to chapter 91 of title 31, United States Code,

shall be available, in addition to objects for which such funds are

otherwise available, for rent in the District of Columbia; services in

accordance with 5 U.S.C. 3109; and the objects specified under this

head, all the provisions of which shall be applicable to the expenditure of such funds unless otherwise specified in the Act by which

they are made available: Provided, That in the event any functions

budgeted as administrative expenses are subsequently transferred to

or paid from other funds, the limitations on administrative expenses

shall be correspondingly reduced.

SEC. 609. No part of any appropriation for the current fiscal

year contained in this or any other Act shall be paid to any person

for the filling of any position for which he or she has been nominated after the Senate has voted not to approve the nomination of

said person.

SEC. 610. No part of any appropriation contained in this or any

other Act shall be available for interagency financing of boards (except Federal Executive Boards), commissions, councils, committees,

or similar groups (whether or not they are interagency entities)

which do not have a prior and specific statutory approval to receive

financial support from more than one agency or instrumentality.

SEC. 611. Funds made available by this or any other Act to the

Postal Service Fund (39 U.S.C. 2003) shall be available for employment of guards for all buildings and areas owned or occupied by

the Postal Service and under the charge and control of the Postal

Service, and such guards shall have, with respect to such property,

the powers of special policemen provided by the first section of the

Act of June 1, 1948, as amended (62 Stat. 281; 40 U.S.C. 318), and,

as to property owned or occupied by the Postal Service, the Postmaster General may take the same actions as the Administrator of

General Services may take under the provisions of sections 2 and 3

of the Act of June 1, 1948, as amended (62 Stat. 281; 40 U.S.C.

318a and 318b), attaching thereto penal consequences under the authority and within the limits provided in section 4 of the Act of June

1, 1948, as amended (62 Stat. 281; 40 U.S.C. 318c).

SEC. 612. None of the funds made available pursuant to the

provisions of this Act shall be used to implement, administer, or enforce any regulation which has been disapproved pursuant to a resolution of disapproval duly adopted in accordance with the applicable law of the United States.

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SEC. 613. (a) Notwithstanding any other provision of law, and

except as otherwise provided in this section, no part of any of the

funds appropriated for fiscal year 2001, by this or any other Act,

may be used to pay any prevailing rate employee described in section 5342(a)(2)(A) of title 5, United States Code—

(1) during the period from the date of expiration of the limitation imposed by section 613 of the Treasury and General

Government Appropriations Act, 2000, until the normal effective

date of the applicable wage survey adjustment that is to take

effect in fiscal year 2001, in an amount that exceeds the rate

payable for the applicable grade and step of the applicable

wage schedule in accordance with such section 613; and

(2) during the period consisting of the remainder of fiscal

year 2001, in an amount that exceeds, as a result of a wage survey adjustment, the rate payable under paragraph (1) by more

than the sum of—

(A) the percentage adjustment taking effect in fiscal

year 2001 under section 5303 of title 5, United States Code,

in the rates of pay under the General Schedule; and

(B) the difference between the overall average percentage of the locality-based comparability payments taking effect in fiscal year 2001 under section 5304 of such title

(whether by adjustment or otherwise), and the overall average percentage of such payments which was effective in fiscal year 2000 under such section.

(b) Notwithstanding any other provision of law, no prevailing

rate employee described in subparagraph (B) or (C) of section

5342(a)(2) of title 5, United States Code, and no employee covered

by section 5348 of such title, may be paid during the periods for

which subsection (a) is in effect at a rate that exceeds the rates that

would be payable under subsection (a) were subsection (a) applicable to such employee.

(c) For the purposes of this section, the rates payable to an employee who is covered by this section and who is paid from a schedule not in existence on September 30, 2000, shall be determined

under regulations prescribed by the Office of Personnel Management.

(d) Notwithstanding any other provision of law, rates of premium pay for employees subject to this section may not be changed

from the rates in effect on September 30, 2000, except to the extent

determined by the Office of Personnel Management to be consistent

with the purpose of this section.

(e) This section shall apply with respect to pay for service performed after September 30, 2000.

(f) For the purpose of administering any provision of law (including any rule or regulation that provides premium pay, retirement, life insurance, or any other employee benefit) that requires

any deduction or contribution, or that imposes any requirement or

limitation on the basis of a rate of salary or basic pay, the rate of

salary or basic pay payable after the application of this section shall

be treated as the rate of salary or basic pay.

(g) Nothing in this section shall be considered to permit or require the payment to any employee covered by this section at a rate

367

in excess of the rate that would be payable were this section not in

effect.

(h) The Office of Personnel Management may provide for exceptions to the limitations imposed by this section if the Office determines that such exceptions are necessary to ensure the recruitment

or retention of qualified employees.

SEC. 614. During the period in which the head of any department or agency, or any other officer or civilian employee of the Government appointed by the President of the United States, holds office, no funds may be obligated or expended in excess of $5,000 to

furnish or redecorate the office of such department head, agency

head, officer, or employee, or to purchase furniture or make improvements for any such office, unless advance notice of such furnishing or redecoration is expressly approved by the Committees on

Appropriations. For the purposes of this section, the word ‘‘office’’

shall include the entire suite of offices assigned to the individual,

as well as any other space used primarily by the individual or the

use of which is directly controlled by the individual.

SEC. 615. Notwithstanding any other provision of law, no executive branch agency shall purchase, construct, and/or lease any additional facilities, except within or contiguous to existing locations,

to be used for the purpose of conducting Federal law enforcement

training without the advance approval of the Committees on Appropriations, except that the Federal Law Enforcement Training Center

is authorized to obtain the temporary use of additional facilities by

lease, contract, or other agreement for training which cannot be accommodated in existing Center facilities.

SEC. 616. Notwithstanding section 1346 of title 31, United

States Code, or section 610 of this Act, funds made available for fiscal year 2001 by this or any other Act shall be available for the

interagency funding of national security and emergency preparedness telecommunications initiatives which benefit multiple Federal

departments, agencies, or entities, as provided by Executive Order

No. 12472 (April 3, 1984).

SEC. 617. (a) None of the funds appropriated by this or any

other Act may be obligated or expended by any Federal department,

agency, or other instrumentality for the salaries or expenses of any

employee appointed to a position of a confidential or policy-determining character excepted from the competitive service pursuant to

section 3302 of title 5, United States Code, without a certification

to the Office of Personnel Management from the head of the Federal

department, agency, or other instrumentality employing the Schedule C appointee that the Schedule C position was not created solely

or primarily in order to detail the employee to the White House.

(b) The provisions of this section shall not apply to Federal employees or members of the armed services detailed to or from—

(1) the Central Intelligence Agency;

(2) the National Security Agency;

(3) the Defense Intelligence Agency;

(4) the offices within the Department of Defense for the collection of specialized national foreign intelligence through reconnaissance programs;

(5) the Bureau of Intelligence and Research of the Department of State;

368

(6) any agency, office, or unit of the Army, Navy, Air Force,

and Marine Corps, the Federal Bureau of Investigation and the

Drug Enforcement Administration of the Department of Justice,

the Department of Transportation, the Department of the Treasury, and the Department of Energy performing intelligence

functions; and

(7) the Director of Central Intelligence.

SEC. 618. No department, agency, or instrumentality of the

United States receiving appropriated funds under this or any other

Act for fiscal year 2001 shall obligate or expend any such funds, unless such department, agency, or instrumentality has in place, and

will continue to administer in good faith, a written policy designed

to ensure that all of its workplaces are free from discrimination and

sexual harassment and that all of its workplaces are not in violation of title VII of the Civil Rights Act of 1964, as amended, the Age

Discrimination in Employment Act of 1967, and the Rehabilitation

Act of 1973.

SEC. 619. None of the funds made available in this Act for the

United States Customs Service may be used to allow the importation into the United States of any good, ware, article, or merchandise mined, produced, or manufactured by forced or indentured

child labor, as determined pursuant to section 307 of the Tariff Act

of 1930 (19 U.S.C. 1307).

SEC. 620. No part of any appropriation contained in this or any

other Act shall be available for the payment of the salary of any officer or employee of the Federal Government, who—

(1) prohibits or prevents, or attempts or threatens to prohibit or prevent, any other officer or employee of the Federal

Government from having any direct oral or written communication or contact with any Member, committee, or subcommittee

of the Congress in connection with any matter pertaining to the

employment of such other officer or employee or pertaining to

the department or agency of such other officer or employee in

any way, irrespective of whether such communication or contact

is at the initiative of such other officer or employee or in response to the request or inquiry of such Member, committee, or

subcommittee; or

(2) removes, suspends from duty without pay, demotes, reduces in rank, seniority, status, pay, or performance of efficiency rating, denies promotion to, relocates, reassigns, transfers, disciplines, or discriminates in regard to any employment

right, entitlement, or benefit, or any term or condition of employment of, any other officer or employee of the Federal Government, or attempts or threatens to commit any of the foregoing actions with respect to such other officer or employee, by

reason of any communication or contact of such other officer or

employee with any Member, committee, or subcommittee of the

Congress as described in paragraph (1).

SEC. 621. (a) None of the funds made available in this or any

other Act may be obligated or expended for any employee training

that—

(1) does not meet identified needs for knowledge, skills, and

abilities bearing directly upon the performance of official duties;

369

(2) contains elements likely to induce high levels of emotional response or psychological stress in some participants;

(3) does not require prior employee notification of the content and methods to be used in the training and written end of

course evaluation;

(4) contains any methods or content associated with religious or quasi-religious belief systems or ‘‘new age’’ belief systems as defined in Equal Employment Opportunity Commission

Notice N–915.022, dated September 2, 1988; or

(5) is offensive to, or designed to change, participants’ personal values or lifestyle outside the workplace.

(b) Nothing in this section shall prohibit, restrict, or otherwise

preclude an agency from conducting training bearing directly upon

the performance of official duties.

SEC. 622. No funds appropriated in this or any other Act may

be used to implement or enforce the agreements in Standard Forms

312 and 4414 of the Government or any other nondisclosure policy,

form, or agreement if such policy, form, or agreement does not contain the following provisions: ‘‘These restrictions are consistent with

and do not supersede, conflict with, or otherwise alter the employee

obligations, rights, or liabilities created by Executive Order No.

12958; section 7211 of title 5, U.S.C. (governing disclosures to Congress); section 1034 of title 10, United States Code, as amended by

the Military Whistleblower Protection Act (governing disclosure to

Congress by members of the military); section 2302(b)(8) of title 5,

United States Code, as amended by the Whistleblower Protection

Act (governing disclosures of illegality, waste, fraud, abuse or public

health or safety threats); the Intelligence Identities Protection Act of

1982 (50 U.S.C. 421 et seq.) (governing disclosures that could expose

confidential Government agents); and the statutes which protect

against disclosure that may compromise the national security, including sections 641, 793, 794, 798, and 952 of title 18, United

States Code, and section 4(b) of the Subversive Activities Act of 1950

(50 U.S.C. 783(b)). The definitions, requirements, obligations,

rights, sanctions, and liabilities created by said Executive order and

listed statutes are incorporated into this agreement and are controlling.’’: Provided, That notwithstanding the preceding paragraph, a

nondisclosure policy form or agreement that is to be executed by a

person connected with the conduct of an intelligence or intelligencerelated 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, telVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00373 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.003 pfrm03 PsN: HR1033
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evision or film presentation designed to support or defeat legislation

pending before the Congress, except in presentation to the Congress

itself.

SEC. 624. (a) IN GENERAL.—For calendar year 2002 and each

year thereafter, the Director of the Office of Management and Budget shall prepare and submit to Congress, with the budget submitted

under section 1105 of title 31, United States Code, an accounting

statement and associated report containing—

(1) an estimate of the total annual costs and benefits (including quantifiable and nonquantifiable effects) of Federal

rules and paperwork, to the extent feasible—

(A) in the aggregate;

(B) by agency and agency program; and

(C) by major rule;

(2) an analysis of impacts of Federal regulation on State,

local, and tribal government, small business, wages, and economic growth; and

(3) recommendations for reform.

(b) NOTICE.—The Director of the Office of Management and

Budget shall provide public notice and an opportunity to comment

on the statement and report under subsection (a) before the statement and report are submitted to Congress.

(c) GUIDELINES.—To implement this section, the Director of the

Office of Management and Budget shall issue guidelines to agencies

to standardize—

(1) measures of costs and benefits; and

(2) the format of accounting statements.

(d) PEER REVIEW.—The Director of the Office of Management

and Budget shall provide for independent and external peer review

of the guidelines and each accounting statement and associated report under this section. Such peer review shall not be subject to the

Federal Advisory Committee Act (5 U.S.C. App.).

SEC. 625. None of the funds appropriated by this or any other

Act may be used by an agency to provide a Federal employee’s home

address to any labor organization except when the employee has authorized such disclosure or when such disclosure has been ordered

by a court of competent jurisdiction.

SEC. 626. Hereafter, the Secretary of the Treasury is authorized

to establish scientific certification standards for explosives detection

canines, and shall provide, on a reimbursable basis, for the certification of explosives detection canines employed by Federal agencies,

or other agencies providing explosives detection services at airports

in the United States.

SEC. 627. None of the funds made available in this Act or any

other Act may be used to provide any non-public information such

as mailing or telephone lists to any person or any organization outside of the Federal Government without the approval of the Committees on Appropriations.

SEC. 628. No part of any appropriation contained in this or any

other Act shall be used for publicity or propaganda purposes within

the United States not heretofore authorized by the Congress.

SEC. 629. (a) In this section the term ‘‘agency’’—

(1) means an Executive agency as defined under section 105

of title 5, United States Code;

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(2) includes a military department as defined under section

102 of such title, the Postal Service, and the Postal Rate Commission; and

(3) shall not include the General Accounting Office.

(b) Unless authorized in accordance with law or regulations to

use such time for other purposes, an employee of an agency shall use

official time in an honest effort to perform official duties. An employee not under a leave system, including a Presidential appointee

exempted under section 6301(2) of title 5, United States Code, has

an obligation to expend an honest effort and a reasonable proportion of such employee’s time in the performance of official duties.

SEC. 630. (a) None of the funds appropriated by this Act may

be used to enter into or renew a contract which includes a provision

providing prescription drug coverage, except where the contract also

includes a provision for contraceptive coverage.

(b) Nothing in this section shall apply to a contract with—

(1) any of the following religious plans:

(A) Personal Care’s HMO;

(B) Care Choices;

(C) OSF Health Plans, Inc.; and

(2) any existing or future plan, if the carrier for the plan

objects to such coverage on the basis of religious beliefs.

(c) In implementing this section, any plan that enters into or renews a contract under this section may not subject any individual

to discrimination on the basis that the individual refuses to prescribe or otherwise provide for contraceptives because such activities

would be contrary to the individual’s religious beliefs or moral convictions.

(d) Nothing in this section shall be construed to require coverage of abortion or abortion-related services.

SEC. 631. Notwithstanding 31 U.S.C. 1346 and section 610 of

this Act, funds made available for fiscal year 2001 by this or any

other Act to any department or agency, which is a member of the

Joint Financial Management Improvement Program (JFMIP), shall

be available to finance an appropriate share of JFMIP administrative costs, as determined by the JFMIP, but not to exceed a total of

$800,000 including the salary of the Executive Director and staff

support.

SEC. 632. Notwithstanding 31 U.S.C. 1346 and section 610 of

this Act, the head of each Executive department and agency is hereby authorized to transfer to the ‘‘Policy and Operations’’ account,

General Services Administration, with the approval of the Director

of the Office of Management and Budget, funds made available for

fiscal year 2001 by this or any other Act, including rebates from

charge card and other contracts. These funds shall be administered

by the Administrator of General Services to support Governmentwide 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

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Council for procurement initiatives). The total funds transferred

shall not exceed $17,000,000. Such transfers may only be made 15

days following notification of the Committees on Appropriations by

the Director of the Office of Management and Budget.

SEC. 633. (a) IN GENERAL.—In accordance with regulations promulgated by the Office of Personnel Management, an Executive

agency which provides or proposes to provide child care services for

Federal employees may use appropriated funds (otherwise available

to such agency for salaries and expenses) to provide child care, in

a Federal or leased facility, or through contract, for civilian employees of such agency.

(b) AFFORDABILITY.—Amounts so provided with respect to any

such facility or contractor shall be applied to improve the affordability of child care for lower income Federal employees using or

seeking to use the child care services offered by such facility or contractor.

(c) DEFINITION.—For purposes of this section, the term ‘‘Executive agency’’ has the meaning given such term by section 105 of title

5, United States Code, but does not include the General Accounting

Office.

(d) NOTIFICATION.—None of the funds made available in this or

any other Act may be used to implement the provisions of this section absent advance notification to the Committees on Appropriations.

SEC. 634. Notwithstanding any other provision of law, a

woman may breastfeed her child at any location in a Federal building or on Federal property, if the woman and her child are otherwise authorized to be present at the location.

SEC. 635. Nothwithstanding section 1346 of title 31, United

States Code, or section 610 of this Act, funds made available for fiscal year 2001 by this or any other Act shall be available for the

interagency funding of specific projects, workshops, studies, and

similar efforts to carry out the purposes of the National Science and

Technology Council (authorized by Executive Order No. 12881),

which benefit multiple Federal departments, agencies, or entities:

Provided, That the Office of Management and Budget shall provide

a report describing the budget of and resources connected with the

National Science and Technology Council to the Committees on Appropriations, the House Committee on Science; and the Senate Committee on Commerce, Science, and Transportation 90 days after enactment of this Act.

SEC. 636. RETIREMENT PROVISIONS RELATING TO CERTAIN

MEMBERS OF THE POLICE FORCE OF THE METROPOLITAN WASHINGTON AIRPORTS AUTHORITY.—(a) QUALIFIED MWAA POLICE OFFICER DEFINED.—For purposes of this section, the term ‘‘qualified

MWAA police officer’’ means any individual who, as of the date of

the enactment of this Act—

(1) is employed as a member of the police force of the Metropolitan Washington Airports Authority (hereinafter in this section referred to as an ‘‘MWAA police officer’’); and

(2) is subject to the Civil Service Retirement System or the

Federal Employees’ Retirement System by virtue of section

49107(b) of title 49, United States Code.

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(b) ELIGIBILITY TO BE TREATED AS A LAW ENFORCEMENT OFFICER FOR RETIREMENT PURPOSES.—

(1) IN GENERAL.—Any qualified MWAA police officer may,

by written election submitted in accordance with applicable requirements under subsection (c), elect to be treated as a law enforcement officer (within the meaning of section 8331 or 8401

of title 5, United States Code, as applicable), and to have all

prior service described in paragraph (2) similarly treated.

(2) PRIOR SERVICE DESCRIBED.—The service described in

this paragraph is all service which an individual performed,

prior to the effective date of such individual’s election under

this section, as—

(A) an MWAA police officer; or

(B) a member of the police force of the Federal Aviation

Administration (hereinafter in this section referred to as an

‘‘FAA police officer’’).

(c) REGULATIONS.—The Office of Personnel Management shall

prescribe any regulations necessary to carry out this section, including provisions relating to the time, form, and manner in which any

election under this section shall be made. Such an election shall not

be effective unless—

(1) it is made before the employee separates from service

with the Metropolitan Washington Airports Authority, but in no

event later than 1 year after the regulations under this subsection take effect; and

(2) it is accompanied by payment of an amount equal to,

with respect to all prior service of such employee which is described in subsection (b)(2)—

(A) the employee deductions that would have been required for such service under chapter 83 or 84 of title 5,

U.S.C. (as the case may be) if such election had then been

in effect, minus

(B) the total employee deductions and contributions

under such chapter 83 and 84 (as applicable) that were actually made for such service,

taking into account only amounts required to be credited to the

Civil Service Retirement and Disability Fund. Any amount

under paragraph (2) shall be computed with interest, in accordance with section 8334(e) of such title 5.

(d) GOVERNMENT CONTRIBUTIONS.—Whenever a payment under

subsection (c)(2) is made by an individual with respect to such individual’s prior service (as described in subsection (b)(2)), the Metropolitan Washington Airports Authority shall pay into the Civil Service Retirement and Disability Fund any additional contributions for

which it would have been liable, with respect to such service, if such

individual’s election under this section had then been in effect (and,

to the extent of any prior FAA police officer service, as if it had then

been the employing agency). Any amount under this subsection shall

be computed with interest, in accordance with section 8334(e) of title

5, United States Code.

(e) CERTIFICATIONS.—The Office of Personnel Management

shall accept, for the purpose of this section, the certification of—

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(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 LIABIL- ITY.— (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 localitybased 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 nonFederal 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.

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(B) The President’s pay agent, based on such comparisons

under subsection (b) as the pay agent considers appropriate, shall:

(i) determine whether any of the five areas under subparagraph (A)

warrants designation as a discrete pay locality; and (ii) if so, make

recommendations as to what level of comparability payments would

be appropriate during 2002 for each area so determined.

(C)(i) Any recommendations under subparagraph (B)(ii) shall

be included—

(I) in the pay agent’s report under section 5304(d)(1) of title

5, United States Code, submitted for purposes of comparability

payments scheduled to become payable in 2002; or

(II) if compliance with subclause (I) is impracticable, in a

supplementary report which the pay agent shall submit to the

President and the Congress no later than March 1, 2001.

(ii) In the event that the recommendations are completed in

time to be included in the report described in clause (i)(I), a copy

of those recommendations shall be transmitted by the pay agent to

the Congress contemporaneous with their submission to the President.

(D) Each of the five areas under subparagraph (A) that so warrants, as determined by the President’s pay agent, shall be designated as a discrete pay locality under section 5304 of title 5,

United States Code, in time for it to be treated as such for purposes

of comparability payments becoming payable in 2002.

(2) The President’s pay agent may, at any time after the 180th

day following the submission of the report under subsection (f),

make any initial or further determinations or recommendations

under this section, based on any pay comparisons under subsection

(b), with respect to any area described in paragraph (3).

(3) An area described in this paragraph is any metropolitan

statistical area within the continental United States that (as determined based on data made available by the Bureau of Labor Statistics and the Office of Personnel Management, respectively) has a

high level of nonfarm employment and at least 2,500 General

Schedule employees whose post of duty is within such area.

(e)(1) The authority under this section to make pay comparisons

and to make any determinations or recommendations based on such

comparisons shall be available to the President’s pay agent only for

purposes of comparability payments becoming payable on or after

January 1, 2002, and before January 1, 2007, and only with respect

to areas described in subsection (d)(3).

(2) Any comparisons and recommendations so made shall, if included in the pay agent’s report under section 5304(d)(1) of title 5,

United States Code, for any year (or the pay agent’s supplementary

report, in accordance with subsection (d)(1)(C)(i)(II)), be considered

and acted on as the pay agent’s comparisons and recommendations

under such section 5304(d)(1) for the area and the year involved.

(f)(1) No later than March 1, 2001, the President’s pay agent

shall submit to the Committee on Government Reform of the House

of Representatives, the Committee on Governmental Affairs of the

Senate, and the Committees on Appropriations of the House of Representatives and of the Senate, a report on the use of pay comparison data, as described in subsection (b)(2) or (3) (as appropriate),

for purposes of comparability payments.

376

(2) The report shall include the cost of obtaining such data, the

rationale underlying the decisions reached based on such data, and

the relative advantages and disadvantages of using such data (including whether the effort involved in analyzing and integrating

such data is commensurate with the benefits derived from their

use). The report may include specific recommendations regarding

the continued use of such data.

(g)(1) No later than May 1, 2001, the President’s pay agent

shall prepare and submit to the committees specified in subsection

(f)(1) a report relating to the ongoing efforts of the Office of Personnel Management, the Office of Management and Budget, and the

Bureau of Labor Statistics to revise the methodology currently being

used by the Bureau of Labor Statistics in performing its surveys

under section 5304 of title 5, United States Code.

(2) The report shall include a detailed accounting of any concerns the pay agent may have regarding the current methodology,

the specific projects the pay agent has directed any of those agencies

to undertake in order to address those concerns, and a time line for

the anticipated completion of those projects and for implementation

of the revised methodology.

(3) The report shall also include recommendations as to how

those ongoing efforts might be expedited, including any additional

resources which, in the opinion of the pay agent, are needed in order

to expedite completion of the activities described in the preceding

provisions of this subsection, and the reasons why those additional

resources are needed.

SEC. 638. FEDERAL FUNDS IDENTIFIED. Any request for proposals, solicitation, grant application, form, notification, press release, or other publications involving the distribution of Federal

funds shall indicate the agency providing the funds and the amount

provided. This provision shall apply to direct payments, formula

funds, and grants received by a State receiving Federal funds.

SEC. 639. MANDATORY REMOVAL FROM EMPLOYMENT OF FEDERAL

LAW ENFORCEMENT OFFICERS CONVICTED OF FELONIES.

(a) IN GENERAL.—Chapter 73 of title 5, United States Code, is

amended by adding after subchapter VI the following:

‘‘SUBCHAPTER VII—MANDATORY REMOVAL FROM EMPLOYMENT OF CONVICTED LAW ENFORCEMENT OFFICERS

‘‘§ 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.

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‘‘(c)(1) This section does not prohibit the removal of an individual from employment as a law enforcement officer before a conviction notice date if the removal is properly effected other than

under this section.

‘‘(2) This section does not prohibit the employment of any individual in any position other than that of a law enforcement officer.

‘‘(d) If the conviction is overturned on appeal, the removal shall

be set aside retroactively to the date on which the removal occurred,

with back pay under section 5596 for the period during which the

removal was in effect, unless the removal was properly effected other

than under this section.

‘‘(e)(1) If removal is required under this section, the agency

shall deliver written notice to the employee as soon as practicable,

and not later than 5 calendar days after the conviction notice date.

The notice shall include a description of the specific reasons for the

removal, the date of removal, and the procedures made applicable

under paragraph (2).

‘‘(2) The procedures under section 7513 (b) (2), (3), and (4), (c),

(d), and (e) shall apply to any removal under this section. The employee may use the procedures to contest or appeal a removal, but

only with respect to whether—

‘‘(A) the employee is a law enforcement officer;

‘‘(B) the employee was convicted of a felony; or

‘‘(C) the conviction was overturned on appeal.

‘‘(3) A removal required under this section shall occur on the

date specified in subsection (b) regardless of whether the notice required under paragraph (1) of this subsection and the procedures

made applicable under paragraph (2) of this subsection have been

provided or completed by that date.’’.

(b) TECHNICAL AND CONFORMING AMENDMENT.—The table of

sections for chapter 73 of title 5, United States Code, is amended

by adding after the item relating to section 7363 the following:

‘‘SUBCHAPTER VII—MANDATORY REMOVAL FROM EMPLOYMENT OF LAW

ENFORCEMENT OFFICERS

‘‘7371. Mandatory removal from employment of law enforcement officers convicted of

felonies.’’.

(c) EFFECTIVE DATE.—The amendments made by this section

shall take effect 30 days after the date of enactment of this Act and

shall apply to any conviction of a felony entered by a Federal or

State court on or after that date.

SEC. 640. Section 504 of the Department of Transportation and

Related Agencies Appropriations Act, 2001 (as enacted into law by

Public Law 106–346) is repealed.

SEC. 641. (a) Section 5545b(d) of title 5, United States Code, is

amended by inserting at the end the following new paragraph:

‘‘(4) Notwithstanding section 8114(e)(1), overtime pay for a

firefighter subject to this section for hours in a regular tour of

duty shall be included in any computation of pay under section

8114.’’.

(b) The amendment in subsection (a) shall be effective as if it

had been enacted as part of the Federal Firefighters Overtime Pay

Reform Act of 1998 (112 Stat. 2681–519).

SEC. 642. Section 6323(a) of title 5, United States Code, is

amended by adding at the end the following:

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‘‘(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:

‘‘§ 5372b. Administrative appeals judges

‘‘(a) For the purpose of this section—

‘‘(1) the term ‘administrative appeals judge position’ means

a position the duties of which primarily involve reviewing decisions of administrative law judges appointed under section

3105; and

‘‘(2) the term ‘agency’ means an Executive agency, as defined by section 105, but does not include the General Accounting Office.

‘‘(b) Subject to such regulations as the Office of Personnel Management may prescribe, the head of the agency concerned shall fix

the rate of basic pay for each administrative appeals judge position

within such agency which is not classified above GS–15 pursuant

to section 5108.

‘‘(c) A rate of basic pay fixed under this section shall be—

‘‘(1) not less than the minimum rate of basic pay for level

AL–3 under section 5372; and

‘‘(2) not greater than the maximum rate of basic pay for

level AL–3 under section 5372.’’.

(2) Section 7323(b)(2)(B)(ii) of title 5, United States Code, is

amended by striking ‘‘or 5372a’’ and inserting ‘‘5372a, or 5372b’’.

(3) The table of sections for chapter 53 of title 5, United States

Code, is amended by inserting after the item relating to section

5372a the following:

‘‘5372b. Administrative appeals judges.’’.

(b) The amendment made by subsection (a)(1) shall apply with

respect to pay for service performed on or after the first day of the

first applicable pay period beginning on or after—

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(1) the 120th day after the date of the enactment of this Act;

or

(2) if earlier, the effective date of regulations prescribed by

the Office of Personnel Management to carry out such amendment.

SEC. 646. Not later than 60 days after the date of enactment of

this Act, the Inspector General of each department or agency shall

submit to Congress a report that discloses any activity of the applicable department or agency relating to—

(1) the collection or review of singular data, or the creation

of aggregate lists that include personally identifiable information, about individuals who access any Internet site of the department or agency; and

(2) entering into agreements with third parties, including

other government agencies, to collect, review, or obtain aggregate lists or singular data containing personally identifiable information relating to any individual’s access or viewing habits

for governmental and nongovernmental Internet sites.

This Act may be cited as the ‘‘Treasury and General Government Appropriations Act, 2001’’.

TREASURY DEPARTMENT, THE UNITED STATES POSTAL

SERVICE, THE EXECUTIVE OFFICE OF THE PRESIDENT,

AND CERTAIN INDEPENDENT AGENCIES APPROPRIATIONS

Following is explanatory language on H.R. 5658, as introduced

on December 14, 2000.

The conferees on H.R. 4577 agree with the matter included in

H.R. 5658 and enacted in this conference report by reference and

the following description. This bill was developed through negotiations by subcommittee members of the Treasury, Postal Service,

General Government Appropriations Subcommittees of the House

and Senate on the differences in the House passed and Senate reported versions of H.R. 4871. References in the following description to the ‘‘conference agreement’’ mean the matter included in the

introduced bill enacted by this conference report. References to the

House bill mean the House passed version of H.R. 4871. References

to the Senate reported bill or Senate reported amendment mean

the Senate reported version of H.R. 4871.

H.R. 4871, the House passed Treasury, Postal Service, and

General Government Appropriation Bill, 2001, and S. 2900, the

Senate reported Treasury and General Government Appropriation

Bill, 2001, were the basis for development of the introduced bill.

The following statement is an explanation of the action agreed

upon in resolving the differences of those two bills and recommended in the accompanying conference report.

The conference agreement on the Treasury and General Government Appropriations Act, 2001, incorporates some of the language and allocations set forth in House Report 106–756 and in the

Senate Report to accompany S. 2900. The language in these reports

should be complied with unless specifically addressed in the accompanying statement of managers. Throughout the accompanying explanatory statement, the managers refer to the Committee and the

Committees on Appropriations. Unless otherwise noted, in both inVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00383 Fmt 6601 Sfmt 6601 E:\HR\OC\HR1033.003 pfrm03 PsN: HR1033
380

stances, the managers are referring to the House Subcommittee on

Treasury, Postal Service, and General Government and the Senate

Subcommittee on Treasury and General Government.

REPROGRAMMING AND TRANSFER OF FUNDS GUIDELINES

The conference agreement includes the following reprogramming guidelines which shall be complied with by all agencies funded by the Treasury and General Government Appropriations Act,

2001:

1. Except under extraordinary and emergency situations,

the Committees on Appropriations will not consider requests

for a reprogramming or a transfer of funds, or use of unobligated balances, which are submitted after the close of the third

quarter of the fiscal year, June 30;

2. Clearly stated and detailed documentation presenting

justification for the reprogramming, transfer, or use of unobligated balances shall accompany each request;

3. For agencies, departments, or offices receiving appropriations in excess of $20,000,000, a reprogramming shall be

submitted if the amount to be shifted to or from any object

class, budget activity, program line item, or program activity

involved is in excess of $500,000 or 10 percent, whichever is

greater, of the object class, budget activity, program line item,

or program activity;

4. For agencies, departments, or offices receiving appropriations less than $20,000,000, a reprogramming shall be submitted if the amount to be shifted to or from any object class,

budget activity, program line item, or program activity involved is in excess of $50,000, or 10 percent, whichever is

greater, of the object class, budget activity, program line item,

or program activity;

5. For any action where the cumulative effect of below

threshold reprogramming actions, or past reprogramming and/

or transfer actions added to the request, would exceed the dollar threshold mentioned above, a reprogramming shall be submitted;

6. For any action which would result in a major change to

the program or item which is different than that presented to

and approved by either of the Committees, or the Congress, a

reprogramming shall be submitted;

7. For any action where funds earmarked by either of the

Committees for a specific activity are proposed to be used for

a different activity, a reprogramming shall be submitted; and,

8. For any action where funds earmarked by either of the

Committees for a specific activity are in excess of the project

or activity requirement, and are proposed to be used for a different activity, a reprogramming shall be submitted.

Additionally, each request shall include a declaration that, as

of the date of the request, none of the funds included in the request

have been obligated, and none will be obligated, until the Committees on Appropriations have approved the request.

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TITLE I—DEPARTMENT OF THE TREASURY

DEPARTMENTAL OFFICES

SALARIES AND EXPENSES

The conferees agree to provide $156,315,000 instead of

$149,437,000 as proposed by the House and $149,610,000 as proposed by the Senate. Included in this amount is $7,332,000 to

maintain current levels; $3,813,000 as a transfer from the Department-Wide Systems and Capital Investments Programs (SCIP);

$3,027,000 to annualize the costs of the fiscal year 2000 drug supplemental for the Office of Foreign Asset Control (OFAC); $854,000

to annualize the costs of filling 6 positions with the Office of International Affairs during fiscal year 2000; $2,899,000 for OFAC program initiatives; $504,000 and no more than 3 positions for increased management and coordination by the Office of Enforcement

of the Department’s involvement in the National Money Laundering Strategy; $2,900,000 for grants to state and local law enforcement groups to help combat money laundering; $502,000 for

reimbursements to Morris County, New Jersey, for law enforcement agencies; $150,000 for reimbursements to Arlington County,

Virginia, law enforcement agencies; and not to exceed $300,000 to

reimburse the State Police, the police departments of the towns of

New Castle, North Castle, Mount Kisco, Bedford, and the Department of Public Safety of Westchester County of the State of New

York.

RECEPTION AND REPRESENTATION ALLOWANCES

The conferees are concerned to learn that, over the past several years, the Office of the Under Secretary of Enforcement has

required the various Treasury law enforcement bureaus to transfer

a portion of their reception and representation funds to the Office

of the Under Secretary. Although there may be certain functions

appropriate to the involvement of all the Treasury law enforcement

bureaus, the conferees remind the Under Secretary that expenses

for these events are accommodated within the amounts authorized

for Departmental Offices reception and representation allowances.

In the event that the Under Secretary believes that Departmental

Offices representation allowances are insufficient to meet current

needs, the Under Secretary should submit a justification for increases to this allowance to the Committees for its consideration.

The conferees also direct the Under Secretary to submit for advance approval any requirement to use reception and representation allowance funds from any appropriation account other than

Departmental Offices, Salaries and Expenses.

ALTERNATIVE FUELS

The conferees urge the Treasury Department to use ethanol,

biodiesel, and other alternative fuels to the maximum extent practicable in meeting the Department’s fuel needs.

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DEPARTMENT-WIDE SYSTEMS AND CAPITAL INVESTMENTS PROGRAMS

The conferees agree to provide $47,287,000 instead of $41,787,000 as proposed by the House and $37,279,000 as proposed

by the Senate. Included in this amount is $14,779,000 for communications infrastructure (including radios and related equipment)

associated with Departmental law enforcement responsibilities for

the Salt Lake City Winter Olympics; $2,000,000 for Critical Infrastructure Protection; and $3,500,000 for Public Key Infrastructure.

OFFICE OF INSPECTOR GENERAL

SALARIES AND EXPENSES

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

TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION

SALARIES AND EXPENSES

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

TREASURY BUILDING AND ANNEX REPAIR AND RESTORATION

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

EXPANDED ACCESS TO FINANCIAL SERVICES

The conferees agree to provide $2,000,000 as proposed by the

House instead of $400,000 as proposed by the Senate. The conferees agree to $300,000 to assist one or more locally-owned Alaska

banking institutions and community partners and $100,000 to

begin a pilot program with the Metropolitan Family Services’ Family Economic Development program.

FINANCIAL CRIMES ENFORCEMENT NETWORK

SALARIES AND EXPENSES

The conferees agree to provide $37,576,000 as proposed by the

Senate instead of $34,694,000 as proposed by the House.

COUNTERTERRORISM FUND

The conferees agree to provide $55,000,000 for the

Counterterrorism Fund as proposed by the Senate instead of no appropriation as proposed by the House. Funds are provided as a contingent emergency.

TREASURY FORFEITURE FUND

The conferees are aware that the $42,500,000 assumed to be

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

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FEDERAL LAW ENFORCEMENT TRAINING CENTER

SALARIES AND EXPENSES

The conferees agree to provide $94,483,000 instead of

$93,483,000 as proposed by the House and $93,198,000 as proposed

by the Senate. Included in this amount is $1,000,000 for the rural

law enforcement education project.

ACQUISITION, CONSTRUCTION, IMPROVEMENTS, AND RELATED

EXPENSES

The conferees agree to provide $29,205,000 as proposed by the

Senate instead of $17,331,000 as proposed by the House.

INTERAGENCY LAW ENFORCEMENT

INTERAGENCY CRIME AND DRUG ENFORCEMENT

The conferees agree to provide $103,476,000 as proposed by the

House instead of $90,976,000 as proposed by the Senate.

FINANCIAL MANAGEMENT SERVICE

SALARIES AND EXPENSES

The conferees agree to provide $206,851,000 instead of

$198,736,000 as proposed by the House and $202,851,000 as proposed by the Senate. The conferees fully fund the President’s request. In addition, the conferees include $4,000,000 to partially

fund a budget shortfall. The conferees fully concur with the language on this topic contained under Departmental Offices in the

Senate Report accompanying S. 2900.

BUREAU OF ALCOHOL, TOBACCO AND FIREARMS

SALARIES AND EXPENSES

The conferees agree to provide $768,695,000 instead of

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

Forces.

GANG RESISTANCE EDUCATION AND TRAINING GRANTS

The conferees agree to provide $13,000,000 for grants to local

law enforcement organizations as proposed by the Senate.

UNITED STATES CUSTOMS SERVICE

SALARIES AND EXPENSES

The conferees agree to provide $1,863,765,000 instead of

$1,822,365,000 as proposed by the House and $1,804,687,000 as

proposed by the Senate. Included in this amount is $13,700,000 for

the second year of funding of the fiscal year 2000 Southwest Border

initiative; $10,000,000 for security enhancements along the northern border; $11,000,000 for vehicle replacement; $3,700,000 for

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money laundering; $9,500,000 for drug investigations; and an additional $5,000,000 to combat forced child labor. Additionally, the

conferees include $500,000 for Customs’ ongoing research on trade

of agricultural commodities and products at a Northern Plains university with an agricultural economics program and support the

use of $2,500,000 for the acquisition of Passive Radar Detection

Technology.

TARGETED RESOURCES FOR THE SOUTHWEST BORDER

The conferees provide $13,700,000 to be combined with the

$11,300,000 in fiscal year 2000 Super Surplus of the Treasury Forfeiture Fund to hire new inspectors, agents, or acquire new detection technology for use along the Southwest border for a total of

$25,000,000. The House conferees do not concur with the Senate

Report language on Targeted Resources for the Southwest Border.

PORTS OF ENTRY

The conferees have received numerous requests to establish,

expand, or preserve Customs presence at various ports, as well as,

to designate new ports of entry. Customs has made a commitment

to put in place a staffing resource allocation model to permit a

more transparent and consistent basis for making such decisions,

but the delay in doing so has caused concern about the ability of

Customs to fulfill its responsibilities. The conferees therefore direct

the Treasury Department and Customs to complete this model and

to report to the Committees on Appropriations not later than November 1, 2000 on its implementation. In relation to this, the conferees urge the Customs Service to give full consideration to the

needs of the following areas for increases or improvements in Customs services: Fargo, North Dakota; Highgate Springs, Vermont;

Charleston, South Carolina; Charleston, West Virginia; Honolulu,

Hawaii; Great Falls, Sweetgrass-Coutts, and Missoula, Montana;

Tri-Cities Regional Airport, Tennessee; Dulles International Airport, Virginia; Louisville International Airport, Kentucky; Miami

International Airport, Florida; Pittsburg, New Hampshire; San Antonio, Texas; and multiple port areas in Arizona, New Mexico, and

Florida.

OPERATION, MAINTENANCE AND PROCUREMENT, AIR AND MARINE

INTERDICTION PROGRAMS

The conferees agree to provide $133,228,000 instead of

$125,778,000 as proposed by the House and $128,228,000 as proposed by the Senate. Included in this amount is $5,000,000 for

source zone deployment of P–3’s; $2,174,000 to maintain current

levels; $7,450,000 for flight safety and enhancements; and

$9,916,000 for costs associated with the delivery of new P–3’s.

AUTOMATION MODERNIZATION

The conferees agree to provide $258,400,000 instead of

$233,400,000 as proposed by the House and $128,400,000 as proposed by the Senate. Included in this amount is $5,400,000 for the

International Trade Data System, as well as not less than

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$130,000,000 to begin work on the Automated Commercial Environment (ACE).

BUREAU OF THE PUBLIC DEBT

ADMINISTERING THE PUBLIC DEBT

The conferees agree to provide $182,901,000 as proposed by the

House and Senate. The conferees agree to include a provision as

proposed by the Senate with respect to administrative costs associated with certain trust funds.

INTERNAL REVENUE SERVICE

PROCESSING, ASSISTANCE, AND MANAGEMENT

The conferees agree to provide $3,567,001,000 instead of $3,487,232,000 as proposed by the House and $3,506,939,000 as

proposed by the Senate. The conferees fully fund the President’s request with respect to adjustments required to maintain current levels of service, organizational modernization, and operational contract support. The funding level also reflects an increase of

$60,000,000 above the fiscal year 2000 level as a result of an interappropriation transfer during fiscal year 2000. The conferees have

not provided any funding for the Staffing Tax Administration for

Balance and Equity (STABLE) initiative, a proposed fiscal year

2001 inter-appropriation transfer, or the electronic tax administration marketing initiative.

IRS DATA FOR ECONOMIC MODELING

The conferees are aware of the critical importance and usefulness of IRS data to economic modeling, such as the modeling used

to project the economic impact of proposed Social Security legislation. The conferees direct IRS to continue working closely with the

Bureau of the Census to ensure the appropriate availability of

these data in a timely manner to groups such as the Congressional

Budget Office (CBO) to facilitate the operation of CBO’s long-term

models of Social Security and Medicare. CBO requires records from

the IRS’ Statistics Of Income that are matched with survey data

from the Bureau of the Census (involving the Current Population

Survey and the Survey of Income and Program Participation) and

records of the Social Security Administration with all record identifiers removed.

TAX LAW ENFORCEMENT

The conferees agree to provide $3,382,402,000 instead of $3,332,676,000 as proposed by the House and $3,378,040,000 as

proposed by the Senate. The conferees fully fund the President’s request with respect to adjustments required to maintain current levels of service and operational contract support. The funding level

also reflects a decrease of $100,000,000 below the fiscal year 2000

level as a result of an inter-appropriation transfer during fiscal

year 2000 and a decrease of $666,000 for a transfer to the Treasury

Inspector General for Tax Administration, as requested. The conferees have not provided any funding for the Staffing Tax Administration for Balance and Equity (STABLE) initiative or for the

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Counterterrorism Initiative, nor have they agreed to a proposed

transfer of $41,000,000 out of the account as an inter-appropriation

transfer during fiscal year 2001.

INFORMATION SYSTEMS

The conferees agree to provide $1,545,090,000 instead of

$1,488,090,000 as proposed by the House and $1,505,090,000 as

proposed by the Senate. The conferees fully fund the President’s request with the exception of the Staffing Tax Administration for

Balance and Equity (STABLE) initiative and $3,000,000 for an

inter-appropriation transfer proposed for fiscal year 2001.

ADMINISTRATIVE PROVISIONS—INTERNAL REVENUE SERVICE

Section 101. The conferees agree to continue a provision which

allows the transfer of 5 percent of any appropriation made available to the IRS to any other IRS appropriation subject to Congressional approval.

Section 102. The conferees agree to continue a provision which

requires the IRS to maintain a training program in taxpayers’

rights, dealing courteously with taxpayers, and cross cultural relations.

Section 103. The conferees agree to continue a provision which

requires the IRS to institute and enforce policies and practices that

will safeguard the confidentially of taxpayer information.

Section 104. The conferees agree to continue a provision proposed by the Senate with respect to the IRS 1–800 help line service.

UNITED STATES SECRET SERVICE

SALARIES AND EXPENSES

The conferees agree to provide $823,800,000 as proposed by the

House instead of $778,279,000 as proposed by the Senate.

ACQUISITION, CONSTRUCTION, IMPROVEMENT, AND RELATED

EXPENSES

The conferees agree to provide $8,941,000 instead of

$5,021,000 as proposed by the House and $4,283,000 as proposed

by the Senate. Included in this amount is $3,920,000 for security

enhancements at the Vice President’s residence.

GENERAL PROVISIONS—DEPARTMENT OF THE TREASURY

Section 110. The conferees agree to continue a provision which

requires the Secretary of the Treasury to comply with certain reprogramming guidelines when obligating or expending funds for

law enforcement activities.

Section 111. The conferees agree to continue a provision which

allows the Department of the Treasury to purchase uniforms, insurance, and motor vehicles without regard to the general purchase

price limitation, and enter into contracts with the Department of

State for health and medical services for Treasury employees in

overseas locations.

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Section 112. The conferees agree to continue a provision which

requires the expenditure of funds so as not to diminish efforts

under section 105 of the Federal Alcohol Administration Act.

Section 113. The conferees agree to continue a provision which

authorizes transfers, up to 2 percent, between law enforcement appropriations under certain circumstances.

Section 114. The conferees agree to continue a provision which

authorizes the transfer, up to 2 percent, between the Departmental

Offices, Office of Inspector General, Treasury Inspector General for

Tax Administration, Financial Management Service, and Bureau of

Public Debt appropriations under certain circumstances.

Section 115. The conferees agree to include a new provision

proposed by the House that authorizes transfer, up to 2 percent,

between the Internal Revenue Service and the Treasury Inspector

General for Tax Administration under certain circumstances.

Section 116. The conferees agree to continue a provision regarding the purchase of law enforcement vehicles.

Section 117. The conferees agree to continue a provision proposed by the House which prohibits the Department of the Treasury and the Bureau of Engraving and Printing from redesigning

the $1 Federal Reserve Note.

Section 118. The conferees agree to continue and make permanent a provision which authorizes Treasury law enforcement agencies to pay their protection officers premium pay in excess of the

pay period limitation.

Section 119. The conferees agree to include a new provision

that provides for transfer from and reimbursements to the Salaries

and Expenses appropriation of the Financial Management Service

for the purposes of debt collection.

Section 120. The conferees agree to include a new provision

that extends the Treasury Franchise Fund through October 1,

2002.

Section 121. The conferees agree to include a new provision

that requires that no reorganization of the US Customs Service

shall result in a reduction of service to the area served by the Port

of Racine, Wisconsin, below the level of service provided in fiscal

year 2000.

Section 122. The conferees agree to include a new provision

proposed by the House authorizing and directing the Bureau of Alcohol, Tobacco and Firearms to reimburse the subcontractor that

provided services in 1993 and 1994 pursuant to Bureau of Alcohol,

Tobacco and Firearms contract number TATF 93–3 out of fiscal

year 2001 appropriations or prior year unobligated balances.

TITLE II—POSTAL SERVICE

PAYMENT TO THE POSTAL SERVICE FUND

The conferees agree to provide $96,093,000 as proposed by the

House instead of $67,093,000 as proposed by the Senate. Of this

amount, $67,093,000 is provided as an advance appropriation for

free and reduced rate mail and $29,000,000 is provided for reimbursement to the Postal Service for prior year losses.

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TITLE III—EXECUTIVE OFFICE OF THE PRESIDENT AND

FUNDS APPROPRIATED TO THE PRESIDENT

COMPENSATION OF THE PRESIDENT AND THE WHITE HOUSE OFFICE

SALARIES AND EXPENSES

The conferees agree to provide $53,288,000 as proposed by the

Senate instead of $52,135,000 as proposed by the House and include a proviso that $9,072,000 of the funds appropriated shall be

available for reimbursements to the White House Communications

Agency, as proposed by the House.

EXECUTIVE RESIDENCE AT THE WHITE HOUSE

OPERATING EXPENSES

The conferees agree to provide $10,900,000 as proposed by the

Senate instead of $10,286,470 as proposed by the House.

WHITE HOUSE REPAIR AND RESTORATION

The conferees agree to provide $968,000 instead of $5,510,000

as proposed by the Senate and $658,000 as proposed by the House.

The conferees provide $458,000 for the design and replacement of

the existing concrete raceway containing voice and communication

lines serving the East Wing and the Executive Residence instead

of the full request of $5,000,000. The conferees direct the Executive

Residence to submit a completed design to the Committees on Appropriations, including an estimate of total construction costs associated with this project.

SPECIAL ASSISTANCE TO THE PRESIDENT AND OFFICIAL RESIDENCE

OF THE VICE PRESIDENT

SALARIES AND EXPENSES

The conferees agree to provide $3,673,000 as proposed by the

Senate instead of $3,664,000 as proposed by the House.

COUNCIL OF ECONOMIC ADVISORS

SALARIES AND EXPENSES

The conferees agree to provide $4,110,000 as proposed by the

Senate instead of $3,997,000 as proposed by the House.

OFFICE OF POLICY DEVELOPMENT

SALARIES AND EXPENSES

The conferees agree to provide $4,032,000 as proposed by the

Senate instead of $4,030,000 as proposed by the House.

NATIONAL SECURITY COUNCIL

SALARIES AND EXPENSES

The conferees agree to provide $7,165,000 as proposed by the

Senate instead of $7,148,000 as proposed by the House.

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OFFICE OF ADMINISTRATION

SALARIES AND EXPENSES

The conferees agree to provide $43,737,000 as proposed by the

Senate instead of $41,185,000 as proposed by the House. The conferees agree to delete language proposed by the House to delay the

effective date of section 638(h) of Public Law 106–58, regarding the

establishment of a Chief Financial Officer within the Executive Office of the President.

OFFICE OF MANAGEMENT AND BUDGET

SALARIES AND EXPENSES

The conferees agree to provide $68,786,000 instead of

$67,143,000 as proposed by the House and $67,935,000 as proposed

by the Senate. The conferees fully fund the President’s request.

APPORTIONMENT FOR INTERNATIONAL FOOD ASSISTANCE PROGRAMS

The conferees do not concur with the House report language

regarding apportionment for International Food Assistance Programs.

OFFICE OF NATIONAL DRUG CONTROL POLICY

SALARIES AND EXPENSES

The conferees agree to provide $24,759,000 as proposed by the

House instead of $24,312,000 as proposed by the Senate.

COUNTERDRUG TECHNOLOGY ASSESSMENT CENTER

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

by the Senate.

FEDERAL DRUG CONTROL PROGRAMS

HIGH INTENSITY DRUG TRAFFICKING AREAS PROGRAM

The conferees agree to provide $206,500,000 instead of

$217,000,000 as proposed by the House and $196,000,000 as proposed by the Senate. The conferees fully fund the Administration’s

request, and include an additional $14,500,000 to increase funding

or expand existing HIDTAs, or to fund newly designated HIDTAs.

The conferees provide that existing HIDTAs shall be funded at fiscal year 2000 levels unless the ONDCP Director submits to the

Committees, and the Committees approve, justification for changes

in those levels based on clearly articulated priorities for the HIDTA

program, as well as published ONDCP performance measures of effectiveness (PMEs). Similarly, while the conferees provide additional funding that may be used for newly designated HIDTAs,

they direct that no funds may be obligated for such purposes until

similar justification is provided to the Committees for approval.

The ability to evaluate effectiveness of individual HIDTAs, and

to match funding needs against budgets, depends on reliable and

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ment. This is particularly important given the key role HIDTAs

play in bringing together many divergent counterdrug agencies and

crosscutting programs—which also exacerbates the problem of isolating the impact of HIDTAs. The conferees anticipate that the

completion of work by the HIDTA Performance Management Working Group will improve performance measurement methodology

and data collection covering the three main target areas identified

in 1999. These are: increasing compliance with HIDTA developmental standards; dismantling or disabling at least 5 percent of

targeted drug trafficking organizations; and reducing specific types

of violent crime. The conferees support ONDCP plans to validate

and verify the HIDTA management, including the use of on-site reviews and external financial evaluations.

As ONDCP reviews candidates for new HIDTA funding, the

conferees direct it to consider the following: Las Vegas, Nevada; Arkansas; Minnesota; North Carolina; and Northern Florida, which

have requested designation; increases for Central Florida, Southwest Border (for New Mexico, South Texas, West Texas, and Arizona), New England, Gulf Coast, Oregon, Northwest (including

southwest and eastern Washington), and Chicago HIDTAs; and full

minimum funding for new HIDTAs in Central Valley, California,

Hawaii, and Ohio. The conferees urge ONDCP to consider using

funds provided above the budget request for designating new

HIDTAs from areas which have already submitted requests.

SPECIAL FORFEITURE FUND

The conferees agree to provide $233,600,000 instead of $219,000,000 as proposed by the House and $144,300,000 as proposed by the Senate. Of this amount, the conferees provide

$185,000,000 for the National Youth Anti-Drug Media Campaign;

$40,000,000 to carry out the Drug Free Communities Act;

$3,000,000 for the costs of space and operations of the counter drug

intelligence executive secretariat (CDX); $3,300,000 for anti-doping

efforts of the United States Olympic Committee; $1,300,000 to the

Metro Intelligence Support and Technical Investigative Center

(MISTIC); and $1,000,000 for the National Drug Court Institute.

NATIONAL YOUTH ANTI-DRUG MEDIA CAMPAIGN

The conferees negate neither the House nor Senate Committee

Report language regarding the youth media campaign. The conferees are concerned with ONDCP’s use of pro bono credits under

the match program for programming content, and note with interest the Statement of Pro-Bono Match Program and Guidelines that

ONDCP posted on its website in July 2000. Consistent with those

guidelines, the conferees direct that ONDCP not issue credits for

ad time and/or space if already purchased with funds appropriated

for the campaign. Furthermore, the conferees direct that ONDCP

not issue any credits for programming content once a program is

in syndication unless it has previously reported to the Committees

on Appropriations reasons why such credit is necessary. Finally,

the conferees underscore the language on page 11 of the guidelines

that reads ‘‘ONDCP exercises its authority to review public service

match materials for credit and valuation through its primary advertising contractor. No ONDCP contractor may make suggestions

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or requests about, or otherwise attempt to influence or modify the

creative product of any media organization or representative for

the purpose of qualifying for pro bono match credit.’’ In keeping

with this the conferees direct ONDCP to ensure that neither it nor

its contractor will review programming content under consideration

for pro bono credit under the match program until such programming is in its final form.

TITLE IV—INDEPENDENT AGENCIES FEDERAL ELECTION

COMMISSION

SALARIES AND EXPENSES

The conferees agree to provide $40,500,000 instead of

$40,240,000 as proposed by the House and $39,755,000 as proposed

by the Senate.

GENERAL SERVICES ADMINISTRATION

FEDERAL BUILDINGS FUND

LIMITATIONS ON AVAILABILITY OF REVENUE

The conferees agree to provide $5,971,509,000 in new

obligational authority instead of $5,272,370,000 as proposed by the

House and $5,502,333,000 as proposed by the Senate. The conferees directly appropriate $464,154,000 into the Fund to cover a

portion of the new obligational needs of the Fund.

AFRICAN BURIAL GROUND

The conferees recognize the efforts of GSA to memorialize the

17th and 18th century African Americans whose remains were discovered during the excavation for a new Federal building at Foley

Square in lower Manhattan. Since 1992, significant work has been

conducted on the memorialization but additional work is required

prior to and including the reinterment of the remains. The conferees expect GSA to complete the project using funds made available from the Federal Buildings Fund or from the borrowing authority remaining for the buildings project at Foley Square.

CONSTRUCTION AND ACQUISITION

The conferees agree to provide $472,176,000 instead of no

funding as proposed by the House and $3,000,000 as proposed by

the Senate. These funds are provided for nine projects. The conferees direct GSA to provide a written report to the Committees on

Appropriations with respect to how GSA plans to allocate these

funds among the various projects prior to allocating the funds.

Within the funds provided the conferees have included $3,500,000

for the design and site acquisition of a combined law enforcement

facility in Saint Petersburg, Florida.

The conferees also agree to provide $276,400,000 as an advance appropriation, not available until October 1, 2001, for four

courthouse construction projects.

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REPAIRS AND ALTERATIONS

The conferees agree to provide $671,193,000 as proposed by the

Senate instead of $490,592,000 as proposed by the House. This

level fully funds the request with the following exceptions: no funds

are provided for the chlorofluorocarbon program, the energy program is funded at $5,000,000, and the glass fragment retention

program is funded at $5,000,000.

BUILDING OPERATIONS

The conferees agree to provide $1,624,771,000 as proposed by

the Senate instead of $1,580,909,000 as proposed by the House.

Within this limitation level, the conferees have included $500,000

to conduct a site selection analysis for a replacement facility for the

National Center for Environmental Prediction of the National Oceanic and Atmospheric Administration, currently located in Camp

Springs, Maryland. The delineated area shall be in the Washington, D.C. Metropolitan area and include the consideration of appropriate educational institutions qualified to be project partners.

A report on the findings of the study shall be provided to the conferees within 120 days of the enactment of this Act.

POLICY AND OPERATIONS

The conferees agree to provide $123,920,000 instead of

$123,420,000 as proposed by the Senate and $115,434,000 as proposed by the House. Increases above the enacted level include

$3,285,000 for pay costs to maintain current levels, $2,075,000 for

protection and maintenance at the Lorton complex in Virginia, and

$8,000,000 for the critical infrastructure protection initiative. The

conferees agree to provide up to $500,000 for virtual archive storage and agree to provide $190,000, from within available funds, for

the Plains States Depopulation Symposium as proposed by the Senate. The conferees do not agree to the reduction of funding from the

fiscal year 2000 level for the digital learning technology effort and

direct that $1,000,000 be used to continue a digital medical education project in connection with the Native American Digital Telehealth Project and Upper Great Plains Native American Telehealth

Program and that $1,000,000 be used to continue activities that

will be the basis for the 21st Century Distributed Learning Environment in Education.

ALTERNATIVE FUELS

The conferees urge the General Services Administration to use

ethanol, biodiesel, and other alternative fuels to the maximum extent practicable in meeting GSA’s fuel needs.

EXPENSES, PRESIDENTIAL TRANSITION

The conferees agree to provide $7,100,000, as proposed by the

Senate instead of no appropriation as proposed by the House.

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GENERAL SERVICES ADMINISTRATION—GENERAL

PROVISIONS

Section 401. The conferees agree to continue a provision that

provides that accounts available to GSA shall be credited with certain funds received from government corporations.

Section 402. The conferees agree to continue a provision that

provides that funds available to GSA shall be available for the hire

of passenger motor vehicles.

Section 403. The conferees agree to continue a provision that

authorizes GSA to transfer funds within the Federal Buildings

Fund to meet program requirements subject to approval by the

Committees on Appropriations.

Section 404. The conferees agree to continue a provision that

prohibits the use of funds to submit a fiscal year 2001 budget request for courthouse construction projects that do not meet design

guide criteria, do not reflect the priorities of the Judicial Conference of the United States, and are not accompanied by a standardized courtroom utilization study.

Section 405. The conferees agree to continue a provision that

provides that no funds may be used to increase the amount of occupiable square feet or provide cleaning services, security enhancements, or any other service usually provided to any agency which

does not pay the requested rental rates.

Section 406. The conferees agree to continue a provision that

provides that funds provided by the Information Technology Fund

for pilot information technology projects may be repaid to the

Fund.

Section 407. The conferees agree to continue a provision that

permits GSA to pay claims of up to $250,000 arising from construction projects and the acquisition of buildings.

Section 408. The conferees agree to include a provision as proposed by the House to provide a one-year extension to the period

for which voluntary separation incentive payments may be offered

by the Administrator of General Services to qualified employees.

Section 409. The conferees agree to include a new provision

proposed by the Senate designating the Federal Building and

United States Courthouse located at 102 North 4th Street in Grand

Forks, North Dakota, as the ‘‘Ronald N. Davies Federal Building

and United States Courthouse’’.

Section 410. The conferees agree to include a new provision

proposed by the Senate regarding the Columbus, New Mexico border station.

Section 411. The conferees agree to include a new provision

proposed by the Senate designating the United States Bankruptcy

Courthouse located at 1100 Laurel Street in Columbia, South Carolina, as the ‘‘J. Bratton Davis United States Bankruptcy Courthouse’’.

Section 412. The conferees agree to include a new provision

proposed by the Senate designating the United States Courthouse

Annex located at 901 19th Street in Denver, Colorado, as the ‘‘Alfred A. Arraj United States Courthouse Annex’’.

Section 413. The conferees agree to include a new provision

proposed by the Senate designating the dormitory building curVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00397 Fmt 6601 Sfmt 6601 E:\HR\OC\HR1033.003 pfrm03 PsN: HR1033
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rently being constructed on the Core Campus of the Federal Law

Enforcement Training Center in Glynco, Georgia, as the ‘‘Paul

Coverdell Dormitory’’.

MERIT SYSTEMS PROTECTION BOARD

SALARIES AND EXPENSES

The conferees agree to provide $29,437,000 as proposed by the

Senate instead of $28,857,000 as proposed by the House.

FEDERAL PAYMENT TO THE MORRIS K. UDALL SCHOLARSHIP AND

EXCELLENCE IN NATIONAL ENVIRONMENTAL POLICY FOUNDATION

The conferees agree to provide $2,000,000 as proposed by the

House instead of $1,000,000 as proposed by the Senate.

ENVIRONMENTAL DISPUTE RESOLUTION FUND

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

NATIONAL ARCHIVES AND RECORDS ADMINISTRATION

OPERATING EXPENSES

The conferees agree to provide $209,393,000 as proposed by the

Senate instead of $195,119,000 as proposed by the House, of which

up to $5,000,000 may be used for the implementation of the Nazi

War Crimes Disclosure Act (5 U.S.C. 552 note; Public Law 105–

246), including preservation and restoration of declassified records,

public access and dissemination activities, and necessary support

services for the Nazi War Criminal Records Interagency Working

Group.

REPAIRS AND RESTORATION

The conferees agree to provide $95,150,000 instead of

$5,650,000 as proposed by the House and $4,950,000 as proposed

by the Senate. This level of funding provides $4,950,000 for the

base repairs and restoration program, $88,000,000 for the major repair and restoration project at the main Archives building,

$1,500,000 for the construction of a new Southeast Regional Archives facility, and $700,000 for the design of a 10,000-square-foot

extension to the Gerald R. Ford Museum.

NATIONAL HISTORICAL PUBLICATIONS AND RECORDS COMMISSION

GRANTS PROGRAM

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

OFFICE OF PERSONNEL MANAGEMENT

SALARIES AND EXPENSES

The conferees agree to provide $94,095,000 as proposed by the

Senate instead of $93,471,000 as proposed by the House.

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PARENTAL LEAVE

The conferees direct the Office of Personnel Management to

conduct a study to develop alternative means for providing Federal

employees with at least 6 weeks of paid parental leave in connection with the birth or adoption of a child, and submit a report containing its findings and recommendations to the Committees on

Appropriations by September 30, 2001. The report should include

projected utilization rates and views as to whether this benefit can

be expected to curtail the rate at which Federal employees are

being lost to the private sector, help the Federal government recruit and retain employees, reduce turnover and replacement costs,

and contribute to parental involvement during a child’s formative

years.

LIMITATION ON ADMINISTRATIVE EXPENSES

The conferees agree to provide $101,986,000 as proposed by the

House instead of $99,624,000 as proposed by the Senate.

OFFICE OF INSPECTOR GENERAL

SALARIES AND EXPENSES

The conferees agree to provide $1,360,000 as proposed by the

House instead of $1,356,000 as proposed by the Senate.

OFFICE OF SPECIAL COUNSEL

SALARIES AND EXPENSES

The conferees agree to provide $11,147,000 instead of

$10,319,000 as proposed by the House and $10,733,000 as proposed

by the Senate. The conferees fully fund the President’s request.

UNITED STATES TAX COURT

SALARIES AND EXPENSES

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

TITLE V—GENERAL PROVISIONS

THIS ACT

Section 501. The conferees agree to continue the provision limiting the expenditure of funds to the current year unless expressly

provided in this Act.

Section 502. The conferees agree to continue the provision limiting the expenditure of funds for consulting services under certain

conditions.

Section 503. The conferees agree to continue the provision prohibiting the use of funds to engage in activities that would prohibit

the enforcement of section 307 of the 1930 Tariff Act.

Section 504. The conferees agree to continue the provision prohibiting the transfer of control over the Federal Law Enforcement

Training Center out of the Department of the Treasury.

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Section 505. The conferees agree to continue the provision concerning employment rights of Federal employees who return to

their civilian jobs after assignment with the Armed Forces.

Section 506. The conferees agree to continue the provision that

requires compliance with the Buy American Act.

Section 507. The conferees agree to continue the provision concerning prohibition of contracts that use certain goods not made in

America.

Section 508. The conferees agree to continue the provision prohibiting contract eligibility where fraudulent intent has been proven in affixing ‘‘Made in America’’ labels.

Section 509. The conferees agree to continue the provision prohibiting the expenditure of funds for abortions under the FEHBP,

as proposed by the House.

Section 510. The conferees agree to continue the provision that

would authorize the expenditure of funds for abortions under the

FEHBP if the life of the mother is in danger or the pregnancy is

a result of an act of rape or incest, as proposed by the House.

Section 511. The conferees agree to continue the provision providing that fifty percent of unobligated balances may remain available for certain purposes.

Section 512. The conferees agree to continue the provision restricting the use of funds for the White House to request official

background reports without the written consent of the individual

who is the subject of the report.

Section 513. The conferees agree to continue the provision that

cost accounting standards under the Federal Procurement Policy

Act shall not apply to the FEHBP.

Section 514. The conferees agree to include a new provision

that transfers a parcel of land from the Gerald R. Ford Library and

Museum to the Gerald R. Ford Foundation as trustee, with reversionary interest as proposed by the House.

Section 515. The conferees include a new provision requiring

OMB to develop guidelines for ensuring and maximizing the quality, objectivity, utility, and integrity of information disseminated by

Federal agencies as proposed by the House.

Section 516. The conferees agree to include a new provision

permitting OPM to utilize certain funds to resolve litigation and

implement settlement agreements regarding the non-foreign area

cost-of-living allowance program as proposed by the Senate.

Section 517. The conferees include and modify a provision prohibiting the use of funds for the purpose of implementation, or in

preparation for implementation, of the Kyoto Protocol as proposed

by the House.

Section 518. The conferees agree to include a new provision requiring OMB to report to Congress on the effectiveness of the Paperwork Reduction Act of 1975 as proposed by the Senate.

TITLE VI—GENERAL PROVISIONS

DEPARTMENTS, AGENCIES AND CORPORATIONS

Section 601. The conferees agree to continue the provision authorizing agencies to pay costs of travel to the United States for the

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immediate families of Federal employees assigned to foreign duty

in the event of a death or a life threatening illness of the employee.

Section 602. The conferees agree to continue the provision requiring agencies to administer a policy designed to ensure that all

of its workplaces are free from the illegal use of controlled substances.

Section 603. The conferees agree to continue the provision regarding price limitations on vehicles to be purchased by the Federal Government.

Section 604. The conferees agree to continue the provision allowing funds made available to agencies for travel to also be used

for quarters allowances and cost-of-living allowances.

Section 605. The conferees agree to continue the provision prohibiting the Government, with certain specified exceptions, from

employing non-U.S. citizens whose posts of duty would be in the

continental U.S.

Section 606. The conferees agree to continue the provision ensuring that agencies will have authority to pay GSA bills for space

renovation and other services.

Section 607. The conferees agree to continue the provision allowing agencies to finance the costs of recycling and waste prevention programs with proceeds from the sale of materials recovered

through such programs.

Section 608. The conferees agree to continue the provision providing that funds may be used by certain groups to pay rent and

other service costs in the District of Columbia.

Section 609. The conferees agree to continue the provision providing that no funds may be used to pay any person filling a nominated position that has been rejected by the Senate.

Section 610. The conferees agree to continue the provision precluding the financing of groups by more than one Federal agency

absent prior and specific statutory approval.

Section 611. The conferees agree to continue the provision authorizing the Postal Service to employ guards and give them the

same special police powers as GSA guards as proposed by the Senate.

Section 612. The conferees agree to continue the provision prohibiting the use of funds for enforcing regulations disapproved in

accordance with the applicable law of the U.S.

Section 613. The conferees agree to continue the provision limiting the pay increases of certain prevailing rate employees.

Section 614. The conferees agree to continue the provision limiting the amount of funds that can be used for redecoration of offices under certain circumstances.

Section 615. The conferees agree to continue the provision prohibiting the expenditure of funds for the acquisition of additional

law enforcement training facilities.

Section 616. The conferees agree to continue the provision to

allow for interagency funding of national security and emergency

telecommunications initiatives.

Section 617. The conferees agree to continue the provision requiring agencies to certify that a Schedule C appointment was not

created solely or primarily to detail the employee to the White

House.

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Section 618. The conferees agree to continue the provision requiring agencies to administer a policy designed to ensure that all

of its workplaces are free from discrimination and sexual harassment.

Section 619. The conferees agree to continue the provision prohibiting the importation of any goods manufactured by forced or indentured child labor.

Section 620. The conferees agree to continue the provision prohibiting the payment of the salary of any employee who prohibits,

threatens or prevents another employee from communicating with

Congress.

Section 621. The conferees agree to continue the provision prohibiting Federal training not directly related to the performance of

official duties.

Section 622. The conferees agree to continue and modify the

provision prohibiting the expenditure of funds for implementation

of agreements in nondisclosure policies unless certain provisions

are included.

Section 623. The conferees agree to continue the provision prohibiting use of appropriated funds for publicity or propaganda designed to support or defeat legislation pending in Congress.

Section 624. The conferees agree to continue and make permanent the provision directing OMB to provide an accounting statement and report on the cumulative costs and benefits of Federal

regulatory programs.

Section 625. The conferees agree to continue the provision prohibiting any Federal agency from disclosing an employee’s home

address to any labor organization, absent employee authorization

or court order.

Section 626. The conferees agree to continue and make permanent the provision authorizing the Secretary of the Treasury to establish scientific canine explosive detection standards.

Section 627. The conferees agree to continue the provision prohibiting funds to be used to provide non-public information such as

mailing or telephone lists to any person or organization outside the

Government without the approval of the Committees on Appropriations.

Section 628. The conferees agree to continue the provision prohibiting the use of funds for propaganda and publicity purposes not

authorized by Congress.

Section 629. The conferees agree to continue the provision directing agency employees to use official time in an honest effort to

perform official duties.

Section 630. The conferees agree to continue, and include technical modifications to the provision addressing contraceptive coverage in health plans participating in the FEHBP, making it identical to current law as enacted by Section 625 of the Departments

of Commerce, Justice and State, the Judiciary, and Related Agencies Appropriations Act of 2000 and deleting the names of two

plans that no longer participate in the program.

Section 631. The conferees agree to continue the provision authorizing the use of fiscal year 2001 funds to finance an appropriate share of the Joint Financial Management Improvement Program.

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Section 632. The conferees agree to continue and modify the

provision authorizing agencies to transfer funds to the Policy and

Operations account of GSA to finance an appropriate share of the

Joint Financial Management Improvement Program.

Section 633. The conferees agree to continue and modify the

provision authorizing agencies to provide child care in Federal facilities.

Section 634. The conferees agree to continue and modify the

provision authorizing breast feeding at any location in a Federal

building or on Federal property.

Section 635. The conferees agree to include a new provision

that permits interagency funding of the National Science and Technology Council as proposed by the House.

Section 636. The conferees agree to include a new provision

concerning retirement provisions relating to certain members of the

police force of the Metropolitan Washington Airports Authority as

proposed by the House.

Section 637. The conferees agree to include a new provision authorizing the President’s Pay Agent to use appropriate data from

sources other than the Bureau of Labor Statistics in making new

locality pay designations as proposed by the House.

Section 638. The conferees agree to continue the provision requiring identification of the Federal agencies providing Federal

funds and the amount provided for all proposals, solicitations,

grant applications, forms, notifications, press releases, or other

publications related to the distribution of funding to a State.

Section 639. The conferees agree to include a new provision requiring the mandatory removal from employment of any law enforcement officer convicted of a felony as proposed by the Senate.

Section 640. The conferees agree to include a new provision repealing Section 504 of the Department of Transportation and Related Agencies Appropriations Act, 2001 (as enacted into law by

P.L. 106–346).

Section 641. The conferees agree to include a new provision

making a modification to the calculation of disability pay for Federal firefighters as proposed by the House.

Section 642. The conferees agree to include a new provision

that includes a technical modification to the basis for using inactive

duty military leave as proposed by the House.

Section 643. The conferees agree to include a new provision

that requires criminal background checks for employees at federally provided day care facilities of the executive branch as proposed

by the House.

Section 644. The conferees include a new provision modifying

Section 501 of the Department of Transportation and Related

Agencies Appropriations Act, 2001 (as enacted into law by P.L.

106–346) related to Federal Internet sites.

Section 645. The conferees agree to include a new provision

that makes pay rates for Administrative Appeals Judges comparable to Administrative Law Judges as proposed by the House.

Section 646. The conferees agree to include a new provision

that requires the Inspector General of each department or agency

to submit to Congress a report that discloses any activity relating

400

to the collection of data about individuals who access any Internet

site of the department or agency.

401

402

403

404

405

406

407

408

409

410

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MISCELLANEOUS APPROPRIATIONS

The conference agreement would enact the provisions of H.R.

5666 as introduced on December 15, 2000. The text of that bill follows:

A BILL Making miscellaneous appropriations for the fiscal year ending September

30, 2001, and for other purposes.

Be it enacted by the Senate and House of Representatives of the

United States of America in Congress assembled, That the following

sums are appropriated, out of any money in the Treasury not otherwise appropriated, for the fiscal year ending September 30, 2001,

and for other purposes namely:

DIVISION A

CHAPTER 1

GENERAL PROVISIONS—THIS CHAPTER

SEC. 101. The Agriculture, Rural Development, Food and Drug

Administration, and Related Agencies Appropriations Act, 2001, is

amended—

(1) In title III, under the heading ‘‘Rural Utilities Service,

Rural Electrification and Telecommunications Loans Program

Account’’, after ‘‘per year’’ insert ‘‘: Provided further, That not

more than $100,000 shall be available for guarantees of private

sector loans’’.

(2) In title III, at the end of the first proviso under the

‘‘Rural Housing Assistance Grants’’ account, insert ‘‘in Mississippi and Alaska’’.

(3) In section 724, by striking ‘‘to Hispanic-serving institutions’’ and all that follows through ‘‘maintained by such institutions’’ and inserting ‘‘to eligible grantees specified in subsection

(d)(3) of that section’’;

(4) In title VIII, under the heading ‘‘Rural Community Advancement Program’’, by striking ‘‘January 1, 2001’’ and inserting ‘‘January 1, 2000’’;

(5) In section 806, by inserting ‘‘: Provided further, That of

the funds made available by this section, the Secretary shall

transfer $5,000,000 to the State of Alabama to be used in conjunction with the program administered by the Alabama Department of Agriculture and Industries: Provided further, That

of the funds made available by this section, the Secretary shall

transfer not more than $300,000 to the State of Montana for

transportation needs associated with emergency haying and

feeding: Provided further, That of the funds made available by

this section, the Secretary shall use not more than $2,000,000

to carry out a program for income losses sustained before April

30, 2001, by individuals who raise poultry owned by other individuals as a result of Poult Enteritis Mortality Syndrome control programs, as determined by the Secretary’’ after ‘‘American

Indian Livestock Feed Program’’;

(6) In section 815(d)(3), by inserting ‘‘affected’’ after ‘‘all’’;

(7) In section 830, by striking ‘‘Section 401’’ and inserting

‘‘Title IV’’.

412

(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 ‘‘, FLUECURED, 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,

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tions Act, 2001, is amended by inserting at the end the following

new section:

‘‘SEC. 778. Notwithstanding section 723 of this Act or any other provision of law, there are hereby appropriated $26,000,000, to remain available until expended, for the program authorized under

section 334 of the Federal Agriculture Improvement and Reform Act

of 1996: Provided, That the entire amount shall be available only

to the extent an official budget request for $26,000,000, that includes designation of the entire amount of the request as an emergency requirement as defined in the Balanced Budget and Emergency Deficit Control Act of 1985, as amended, is transmitted by the

President to the Congress: Provided further, That the entire amount

is designated by the Congress as an emergency requirement pursuant to section 251(b)(2)(A) of such Act.’’.

SEC. 106. In carrying out the bovine tuberculosis eradication

program covered by the Secretary of Agriculture’s emergency declaration effective as of October 11, 2000, the Secretary of Agriculture

shall pay 100 percent of the amounts of approved claims for materials affected by or exposed to bovine tuberculosis, and of approved

claims growing out of the destruction of animals: Provided, That in

calculating the net present value of the future income portion of any

claim, the Secretary shall use a discount rate of 7 percent: Provided

further, That the entire amount necessary to carry out this section

shall be available only to the extent that an official budget request

for the entire amount, that includes designation of the entire

amount of the request as an emergency requirement as defined in

the Balanced Budget and Emergency Deficit Control Act of 1985, as

amended, is transmitted by the President to the Congress: Provided

further, That the entire amount is designated by the Congress as an

emergency requirement pursuant to section 251(b)(2)(A) of such Act.

SEC. 107. Section 820(b) of the Agriculture, Rural Development,

Food and Drug Administration, and Related Agencies Appropriations Act, 2001, is amended by striking ‘‘of 1996’’ and inserting the

following: ‘‘of 1996, and for the Farmland Protection Program established under section 388 of the Federal Agriculture Improvement

and Reform Act of 1996’’.

SEC. 108. For an additional amount for the United States Department of Agriculture, Office of the General Counsel, $500,000:

Provided, That the entire amount shall be available only to the extent an official budget request for $500,000, that includes designation of the entire amount of the request as an emergency requirement as defined in the Balanced Budget and Emergency Deficit

Control Act of 1985, as amended, is transmitted by the President to

the Congress: Provided further, That the entire amount is designated by the Congress as an emergency requirement pursuant to

section 251(b)(2)(A) of such Act.

SEC. 109. For an additional amount for Grain Inspection, Packers and Stockyards Administration, Salaries and Expenses,

$200,000: Provided, That the entire amount shall be available only

to the extent an official budget request for $200,000, that includes

designation of the entire amount of the request as an emergency requirement as defined in the Balanced Budget and Emergency Deficit Control Act of 1985, as amended, is transmitted by the President to the Congress: Provided further, That the entire amount is

414

designated by the Congress as an emergency requirement pursuant

to section 251(b)(2)(A) of such Act.

SEC. 110. Notwithstanding any other provision of law, the Natural Resources Conservation Service may provide financial and

technical assistance to the Hamakua Ditch project in Hawaii from

funds available for the Emergency Watershed Program, not to exceed $3,000,000.

CHAPTER 2

DEPARTMENT OF JUSTICE

FEDERAL PRISON SYSTEM

SALARIES AND EXPENSES

For an additional amount for ‘‘Salaries and Expenses’’, $500,000, to remain available until expended: Provided, That these

funds are to be expended by the National Institute of Corrections

(NIC) for a comprehensive assessment of medical care and incidents

of inmate mortality in the Wisconsin State Prison System.

OFFICE OF JUSTICE PROGRAMS

JUSTICE ASSISTANCE

For an additional amount for ‘‘Justice Assistance’’, $300,000, to

remain available until expended: Provided, That these funds are to

be expended to expand the collection of data on prisoner deaths

while in law enforcement custody.

COMMUNITY ORIENTED POLICING SERVICES

For an additional amount for ‘‘Community Oriented Policing Services’’, $3,080,000, to remain available until expended, of which

$1,880,000 shall be for a grant to the Pasadena, California, Police

Department for equipment; of which $200,000 shall be for a grant

to the City of Signal Hill, California, for equipment and technology

for an emergency operations center; and of which $1,000,000 shall

be for a grant to the State of Alabama Department of Forensic

Sciences for equipment.

JUVENILE JUSTICE PROGRAMS

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

GENERAL PROVISIONS

SEC. 201. Chapter 2 of title II of division B of Public Law 106–

246 (114 Stat. 542) is amended in the matter immediately under the

first heading—

(1) by inserting, ‘‘(or the state, in the case of New Mexico)’’ before ‘‘only’’; and

(2) by inserting, ‘‘detention costs,’’ after ‘‘court costs,’’.

SEC. 202. For an additional amount under the heading ‘‘United

States Attorneys, Salaries and Expenses’’ in the Departments of

Commerce, Justice, and State, the Judiciary, and Related Agencies

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Appropriations Act, 2001, $10,000,000 for the State of Texas and

$2,000,000 for the State of Arizona, to reimburse county and municipal governments only for Federal costs associated with the handling and processing of illegal immigration and drug and alien

smuggling cases, such reimbursements being limited to court costs,

detention costs, courtroom technology, the building of holding

spaces, administrative staff, and indigent defense costs.

SEC. 203. In addition to amounts appropriated under the heading ‘‘State and Local Law Enforcement Assistance, Office of Justice

Programs’’ in the Departments of Commerce, Justice, and State, the

Judiciary, and Related Agencies Appropriations Act, 2001,

$9,000,000 is for an award to the Alliance of Boys & Girls of South

Carolina for the establishment of the Strom Thurmond Boys &

Girls Club National Training Center.

SEC. 204. In addition to any amounts made available for ‘‘State

and Local Law Enforcement Assistance’’ within the Department of

Justice, $500,000 shall be made available only for the New Hampshire Department of Safety to investigate and support the prosecution of violations of federal trucking laws.

SEC. 205. In addition to other amounts made available for the COPS technology program of the Department of Justice, $4,000,000

shall be available to the State of South Dakota to establish a regional radio system to facilitate communications between Federal,

State, and local law enforcement agencies, firefighting agencies, and

other emergency services agencies.

DEPARTMENT OF COMMERCE

ECONOMIC AND STATISTICAL ANALYSIS

SALARIES AND EXPENSES

For an additional amount for ‘‘Salaries and Expenses’’,

$200,000, to remain available until expended, for the establishment

of satellite accounts for the travel and tourism industry.

NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION

OPERATIONS, RESEARCH, AND FACILITIES

For an additional amount for ‘‘Operations, Research, and Facilities’’, $750,000, to remain available until expended, for a study

by the National Academy of Sciences pursuant to H.R. 2090, as

passed by the House of Representatives on September 12, 2000.

GENERAL PROVISIONS

SEC. 206. The Departments of Commerce, Justice, and State,

the Judiciary, and Related Agencies Appropriations Act, 2001, as

enacted by section 1(a)(2) of the Act entitled ‘‘An Act making appropriations for the government of the District of Columbia and other

activities chargeable in whole or in part against revenues of said

District for the fiscal year ending September 30, 2001, and for other

purposes’’ is amended by inserting before the period at the end of

the paragraph under the heading ‘‘National Oceanic and Atmospheric Administration, Operations, Research, and Facilities’’ the following new proviso: ‘‘: Provided further, That, of the amounts made

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available for the National Marine Fisheries Service under this

heading, $10,000,000 shall be available only for research regarding

litigation concerning the Alaska Steller sea lion and Bering Sea/

Aleutian Islands and Gulf of Alaska groundfish fisheries, of which

$6,000,000 shall be available only for the Office of Oceanic and Atmospheric Research to study the impact of ocean climate shifts on

the North Pacific and Bering Sea fish and marine mammal species

composition, of which $2,000,000 shall be available only for the National Ocean Service to study predator/prey relationships as they

relate to the decline of the western population of Steller sea lions,

and of which $2,000,000 shall be available only for the North Pacific Fishery Management Council for an independent analysis of

Steller sea lion science and other work related to such litigation’’.

SEC. 207. (a) In addition to amounts appropriated or otherwise

made available under the heading ‘‘Operations, Research, and Facilities, National Oceanic and Atmospheric Administration’’ in the

Departments of Commerce, Justice, and State, the Judiciary, and

Related Agencies Appropriations Act, 2001, $7,500,000 is appropriated for disaster assistance for communities affected by the 2000

western Alaska salmon disaster for which the Secretary of Commerce declared a fishery failure under section 312(a) of the Magnuson Stevens Fisheries Conservation and Management Act.

(b) Funds appropriated by this section shall be made available

as direct lump sum payments no later than 30 days after the date

of enactment of this Act, as follows: $3,500,000 to the Tanana

Chiefs Conference, $3,500,000 to the Association of Village Council

Presidents, and $500,000 to Kawerak.

(c) Such funds shall be used to provide personal assistance with

priority given to (1) food, (2) energy needs, (3) housing assistance,

(4) transportation fuel including for subsistence activities, and (5)

other urgent community needs.

(d) Not more than 5 percent of such funds may be used for administrative expenses.

(e) The President of the Tanana Chiefs Conference, the President of the Association of Village Council Presidents, and the President of Kawerak shall disburse all funds no later than May 1, 2000

and shall submit a report to the Secretary of Commerce detailing

the expenditure of funds, including the number of persons and

households served and the amount of administrative costs, by the

end of the fiscal year.

SEC. 208. In addition to amounts appropriated or otherwise

made available by this or any other Act, $3,000,000 is appropriated

to enable the Secretary of Commerce to provide economic assistance

to fishermen and fishing communities affected by federal closures

and fishing restrictions in the Hawaii long line fishery, to remain

available until expended.

SEC. 209. IMPLEMENTATION OF STELLER SEA LION PROTECTIVE

MEASURES.—

(a) FINDINGS.—The Congress finds that—

(1) the western population of Steller sea lions has substantially declined over the last twenty-five years.

(2) scientists should closely research and analyze all possible factors relating to such decline, including the possible

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interactions between commercial fishing and Steller sea lions

and the localized depletion hypothesis;

(3) the authority to manage commercial fishing in federal

waters lies with the regional councils and the Secretary of Commerce (hereafter in this section ‘‘Secretary’’) pursuant to the

Magnuson-Stevens Fishery Conservation and Management Act

(hereafter in this section ‘‘Magnuson-Stevens Act’’); and

(4) the Secretary of Commerce shall comply with the Magnuson-Stevens Act when using fishery management plans and

regulations to implement the decisions made pursuant to findings under the Endangered Species Act, and shall utilize the

processes and procedures of the regional fishery management

councils as required by the Magnuson-Stevens Act.

(b) INDEPENDENT SCIENTIFIC REVIEW.—The North Pacific Fishery Management Council (hereafter in this section ‘‘North Pacific

Council’’) shall utilize the expertise of the National Academy of

Sciences to conduct an independent scientific review of the November 30, 2000 Biological Opinion for the Bering Sea/Aleutian Islands and Gulf of Alaska groundfish fisheries (hereafter in this section ‘‘Biological Opinion’’), its underlying hypothesis, and the Reasonable and Prudent Alternatives (hereafter in this section ‘‘Alternatives’’) contained therein. The Secretary shall cooperate with the

independent scientific review, and the National Academy of Sciences

is requested to give its highest priority to this review.

(c) PREPARATION OF FISHERY MANAGEMENT PLANS AND REGU- LATIONS 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;

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(C) restricted harvest levels near rookeries and haulouts;

(D) federally-trained observers;

(E) spatial and temporal harvest restrictions;

(F) federally-mandated bycatch reduction programs;

and

(G) additional conservation benefits provided through

cooperative fishing arrangements,

and said regulations are hereby restored to full force and effect.

(4) The Secretary shall amend these regulations by January

20, 2001, after consultation with the North Pacific Council and

in a manner consistent with all law, including the MagnusonStevens Act, and consistent with the Alternatives to the maximum extent practicable, subject to the other provisions of this

subsection.

(5) The harvest reduction requirement (‘‘Global Control

Rule’’) shall take effect immediately in any 2001 groundfish

fishery in which it applies, but shall not cause a reduction in

the total allowable catch of any fishery of more than ten percent.

(6) In enforcing regulations for the 2001 fisheries, the Secretary, upon recommendation of the North Pacific Council, may

open critical habitat where needed, adjust seasonal catch levels,

and take other measures as needed to ensure that harvest levels

are sufficient to provide income from these fisheries for small

boats and Alaskan on-shore processors that is no less than in

1999.

(7) The regulations that are promulgated pursuant to paragraph (4) shall not be modified in any way other than upon recommendation of the North Pacific Council, before March 15,

2001.

(d) SEA LION PROTECTION MEASURES.—$20,000,000 is hereby

appropriated to the Secretary of Commerce to remain available until

expended to develop and implement a coordinated, comprehensive

research and recovery program for the Steller sea lion, which shall

be designed to study—

(1) available prey species;

(2) predator/prey relationships;

(3) predation by other marine mammals;

(4) interactions between fisheries and Steller sea lions, including the localized depletion theory;

(5) regime shift, climate change, and other impacts associated with changing environmental conditions in the North Pacific and Bering Sea;

(6) disease;

(7) juvenile and pup survival rates;

(8) population counts;

(9) nutritional stress;

(10) foreign commercial harvest of sealions outside the exclusive economic zone;

(11) the residual impacts of former government-authorized

Steller sea lion eradication bounty programs; and

(12) the residual impacts of intentional lethal takes of

Steller sea lions. Within available funds the Secretary shall imVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00422 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.003 pfrm03 PsN: HR1033
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plement on a pilot basis innovative non-lethal measures to protect Steller sea lions from marine mammal predators including

killer whales,

(e) ECONOMIC DISASTER RELIEF.—$30,000,000 is hereby appropriated to the Secretary of Commerce to make available as a direct

payment to the Southwest Alaska Municipal Conference to distribute to fishing communities, businesses, community development

quota groups, individuals, and other entities to mitigate the economic losses caused by Steller sea lion protection measures heretofore incurred; provided that the President of such organization

shall provide a written report to the Secretary and the House and

Senate Appropriations Committee within six months of receipt of

these funds.

DEPARTMENT OF STATE AND RELATED AGENCY

GENERAL PROVISIONS

SEC. 210. In addition to any amounts made available for ‘‘Educational and Cultural Exchange Programs within the Department of

State’’, $500,000 shall be made available only for the Irish Institute.

SEC. 211. In addition to amounts appropriated under the heading ‘‘International Broadcasting Operations, Broadcasting Board of

Governors’’ in the Departments of Commerce, Justice, and State, the

Judiciary, and Related Agencies Appropriations Act, 2001,

$10,000,000 to remain available until expended, for increased

broadcasting to Russia and surrounding areas, and to China, by

Radio Free Europe/Radio Liberty, Radio Free Asia, and the Voice

of America: Provided, That any amount of such funds may be transferred to the ‘‘Broadcasting Capital Improvements’’ account to carry

out such purposes.

RELATED AGENCIES

COMMISSION ON ONLINE CHILD PROTECTION

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

SMALL BUSINESS ADMINISTRATION

SALARIES AND EXPENSES

For an additional amount for ‘‘Salaries and Expenses’’,

$1,000,000 shall be available for a grant to the Electronic Commerce Resource Center in Scranton, Pennsylvania, to establish an

electronic commerce technology distribution center.

GENERAL PROVISION

SEC. 212. For an additional amount for ‘‘Small Business Administration, Salaries and Expenses’’ $1,000,000 shall be made

available only for a grant to the National Museum of Jazz in New

York, New York.

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GENERAL PROVISION—THIS CHAPTER

SEC. 213. (a) The provisions of H.R. 5548 (as enacted into law

by H.R. 4942 of the 106th Congress) are amended as follows:

(1) In title I, under the heading ‘‘Salaries and Expenses,

United States Marshals Service’’, by striking ‘‘3,947’’ and inserting ‘‘4,034’’.

(2) In title I, by redesignating sections 114 through 119 as

sections 113 through 118, respectively.

(3) In title II, under the heading ‘‘National Oceanic and Atmospheric Administration—Operations, Research, and Facilities’’, by striking ‘‘$31,439,000’’ and inserting ‘‘$32,054,000’’.

(4) In title II, under the heading ‘‘National Oceanic and Atmospheric Administration—Coastal and Ocean Activities’’—

(A) by striking ‘‘non-contiguous States except Hawaii’’

and inserting ‘‘Alaska’’;

(B) by striking ‘‘Inc,’’ and inserting ‘‘Inc.,’’;

(C) by striking ‘‘scrup;’’ and inserting ‘‘scrub;’’; and

(D) by striking ‘‘watershed for lower Rouge River restoration:’’ and inserting ‘‘watershed:’’.

(5) In title IV, by striking section 406 and by redesignating

sections 407 and 408 as sections 406 and 407, respectively.

(6) In title VI, by striking sections 635 and 636.

(7) In title IX, in the first proviso of section 901, by striking

‘‘, territory or an Indian Tribe’’ and inserting ‘‘or territory’’.

(b) The amendments made by this section shall take effect as

if included in H.R. 4942 of the 106th Congress on the date of its

enactment.

CHAPTER 3

DEPARTMENT OF DEFENSE

GENERAL PROVISIONS—THIS CHAPTER

SEC. 301. In the event that award of the full funding contract

for low-rate initial production of the F–22 aircraft is delayed beyond

December 31, 2000 because of inability to complete the requirements

specified in section 8124 of the Department of Defense Appropriations Act, 2001 (Public Law 106–259), the Secretary of the Air Force

may obligate up to $353,000,000 of the funds appropriated in Title

III of Public Law 106–259 to continue F–22 Lot 1 (10 aircraft) advance procurement to protect the supplier base and preserve program costs and schedule.

SEC. 302. (a) Consistent with Executive Order Number 1733,

dated March 3, 1913, and notwithstanding section 303 of the Alaska National Interest Lands Conservation Act, Public Law 96–487,

or any other law, the Department of the Air Force shall have primary jurisdiction, custody, and control over Shemya Island and its

appurtenant waters (including submerged lands). In exercising such

primary jurisdiction, custody, and control, the Secretary of the Air

Force may utilize and apply such authorities as are generally applicable to a military installation, base, camp, post, or station. Shemya

Island and its appurtenant waters (including submerged lands)

shall continue to be included within the Alaska Maritime National

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Wildlife Refuge and the National Wildlife Refuge System and the

Secretary of the Interior shall have jurisdiction secondary to that of

the Department of the Air Force. Nothing in this section shall prohibit the transfer of jurisdiction, custody, and control over Shemya

Island by the Department of the Air Force to another military department. In the event the military department exercising such primary jurisdiction, custody, and control no longer has a need to exercise such primary jurisdiction, custody, and control of Shemya Island and its appurtenant waters (including submerged lands), such

jurisdiction, custody, and control shall terminate and the Secretary

of the Interior shall then exercise sole jurisdiction, custody, and control over Shemya Island and its appurtenant waters (including submerged lands) as part of the Alaska Maritime National Wildlife

Refuge.

(b) Any environmental contamination of Shemya Island caused

by a military department shall be the responsibility of that military

department and not the responsibility of the Department of the Interior. Any money rentals received by a military department from

outgrants on Shemya Island will be applied to the environmental

restoration of the island in accordance with 10 U.S.C. 2667.

(c) This section shall not be construed as altering any existing

property rights of the State of Alaska or any private person.

(d) The military department exercising primary jurisdiction,

custody, and control over Shemya Island shall, consistent with the

accomplishment of the military mission and subject to section 21 of

the Internal Security Act of 1950, Public Law 81–831 (50 U.S.C.

797) (also known as the Subversive Activities Control Act of 1950)—

(1) work with the United States Fish and Wildlife Service

to protect and conserve the wildlife and habitat on the island;

and

(2) grant access to Shemya Island and its appurtenant waters to the United States Fish and Wildlife Service for the purpose of management of the Alaska Maritime National Wildlife

Refuge.

SEC. 303. Within the funds appropriated for the Patriot PAC–

3 program under Title III of the Department of Defense Appropriations Act, 2001 (Public Law 106–259), the Ballistic Missile Defense

Organization shall procure no less than 40 PAC–3 missiles.

SEC. 304. Section 8133 of Public Law 106–259 (114 Stat. 703) is amended by striking ‘‘$300,000,000’’ in the first proviso and inserting ‘‘$550,000,000’’.

(TRANSFER OF FUNDS)

SEC. 305. Of the total amount appropriated by title II of the Department of Defense Appropriations Act, 2001 (Public Law 106–259)

for operation and maintenance for the armed force or armed forces

under the jurisdiction of the Secretary of a military department, the

Secretary of that military department may transfer up to $2,000,000

to the central fund established by the Secretary under section

2493(d) of title 10, United States Code, for funding Fisher Houses

and Fisher Suites. Amounts so transferred shall be merged with

other amounts in the central fund to which transferred and shall

be available without fiscal year limitation for the purposes for

which amounts in that fund are available.

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SEC. 306. FUNDING FOR CERTAIN COSTS OF VESSEL TRANSFERS. There is hereby appropriated into the Defense Vessels Transfer Program Account such sums as may be necessary for the costs (as defined in section 502 of the Congressional Budget Act of 1974 (2

U.S.C. 661a)) of the lease-sale transfers authorized by the National

Defense Authorization Act, 2001. Funds in that account are available only for the purpose of covering those costs.

SEC. 307. Of the total amount appropriated by title IV of the

Department of Defense Appropriations Act, 2001 (Public Law 106–

259) under the heading ‘‘Research, Development, Test and Evaluation, Defense-Wide’’, not less than $5,000,000 shall be made available only for support of a Gulf War illness research program at the

University of Texas Southwestern Medical Center.

(INCLUDING TRANSFER OF FUNDS)

SEC. 308. In addition to amounts appropriated for the Department of Defense in the Department of Defense Appropriations Act,

2001 (Public Law 106–259), $150,000,000 is hereby appropriated for

‘‘Operation and Maintenance, Navy’’ and shall remain available

until expended, only for costs associated with the repair of the

U.S.S. COLE: Provided, That the Secretary of Defense may transfer

these funds to appropriations accounts for procurement: Provided

further, That the funds transferred shall be merged with and shall

be available for the same purposes and for the same time period, as

the appropriation to which transferred: Provided further, That the

transfer authority provided in this section is in addition to any

other transfer authority available to the Department of Defense: Provided further, That the welfare of the crew, and of the families of

the crew, of the U.S.S. COLE shall be considered in the Navy’s selection of the process and location for the repair of the U.S.S.

COLE: Provided further, That the entire amount made available in

this section is designated by the Congress as an emergency requirement pursuant to section 251(b)(2)(A) of the Balanced Budget and

Emergency Deficit Control Act of 1985, as amended.

SEC. 309. Notwithstanding any other provision of law, the Administrator of the General Services Administration may utilize

funds available to the National Science and Technology Council

(authorized by Executive Order No. 12881), or any successor entity

to the council, under section 635 of the Treasury and General Government Appropriations Act, 2001 for payment of any expenses of,

and shall ensure that administrative services, facilities, staff and

other support are provided for, the Commission on the Future of the

United States Aerospace Industry pursuant to section 1092(e)(1) of

the Floyd D. Spence National Defense Authorization Act for Fiscal

Year 2001 (as enacted by section 1 of the Act to authorize appropriations for fiscal year 2001 for military activities of the Department

of Defense, for military construction, and for defense activities of the

Department of Energy, to prescribe personnel strengths for such fiscal year for the Armed Forces, and for other purposes).

SEC. 310. In addition to funds provided elsewhere in this Act,

or in the Department of Defense Appropriations Act, 2001 (Public

Law 106–259), $2,000,000 is hereby appropriated to ‘‘Operation and

Maintenance, Marine Corps’’, only for planning and National Environmental Protection Act documentation for the proposed airfield

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and heliport at the Marine Corps Air Ground Task Force Training

Command.

(TRANSFER OF FUNDS)

SEC. 311. Of the funds made available in the Department of Defense Appropriations Act, 2001 (Public Law 106–259), the Secretary

of the Air Force shall transfer $5,000,000 of the funds provided for

‘‘Operation and Maintenance, Air Force’’ to the Secretary of the Interior for maintenance, protection, or preservation of the land and interests in land described in section 3 of the Minuteman Missile National Historic Site Establishment Act of 1999 (Public Law 106–115;

113 Stat. 1540): Provided, That the transfer authority provided in

this section is in addition to any other transfer authority available

to the Department of Defense for fiscal year 2001.

SEC. 312. (a) The Secretary of the Air Force is authorized to

convey to the Roosevelt General Hospital, Portales, New Mexico,

without consideration, and without regard to title II of the Federal

Property and Administrative Services Act of 1949, all right, title,

and interest of the United States in any personal property of the Air

Force that the Secretary determines—

(1) is appropriate for use by the Roosevelt General Hospital

in the operation of that hospital; and

(2) is excess to the needs of the Air Force.

(b) The Secretary may require any additional terms and conditions in connection with any conveyance under subsection (a) that

the Secretary considers appropriate to protect the interests of the

United States.

(INCLUDING TRANSFER OF FUNDS)

SEC. 313. In addition to amounts appropriated for the Department of Defense in the Department of Defense Appropriations Act,

2001 (Public Law 106–259), $100,000,000 is hereby appropriated for

‘‘Overseas Contingency Operations Transfer Fund’’ and shall remain

available until expended: Provided, That the Secretary of Defense

may transfer the funds provided herein only to appropriations for

military personnel; operation and maintenance; procurement; research, development, test and evaluation; and working capital

funds: Provided further, That the funds transferred shall be merged

with and shall be available for the same purposes and for the same

time period, as the appropriation to which transferred: Provided

further, That upon a determination that all or part of the funds

transferred from this appropriation are not necessary for the purposes provided herein, such amounts may be transferred back to

this appropriation: Provided further, That the transfer authority

provided in this section is in addition to any other transfer authority contained elsewhere in this Act: Provided further, That funds appropriated by this section, or made available by the transfer of

funds in this section, for intelligence activities are deemed to be specifically authorized by the Congress for the purposes of section 504

of the National Security Act of 1947 (50 U.S.C. 414) during fiscal

year 2001: Provided further, That the entire amount made available

in this section is designated by the Congress as an emergency requirement pursuant to section 251(b)(2)(A) of the Balanced Budget

and Emergency Deficit Control Act of 1985, as amended.

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SEC. 314. Of the total amount appropriated by title IV of the

Department of Defense Appropriations Act, 2001 (Public Law 106–

259) under the heading ‘‘Research, Development, Test and Evaluation, Navy’’, up to $3,000,000 shall be made available to the Marine

Corps to pursue research in Nanotechnology for Consequence Management.

SEC. 315. Of the total amount appropriated by title IV of the

Department of Defense Appropriations Act, 2001 (Public Law 106–

259) under the heading ‘‘Research, Development, Test and Evaluation, Army’’, not less than $1,500,000 shall be made available only

for installation of the Medical Area Network for Virtual Technologies at Fort Detrick and Walter Reed Army Hospital, and not

less than $1,000,000 shall be made available only to conduct a pilot

study to determine the feasibility of establishing a Department of

Defense Information Analysis Center for telemedicine.

SEC. 316. The Secretary of the Navy shall acquire 50 acres of

real property located on Reed Island, along the south shore of the

St. John’s River across from Blount Island Command, Jacksonville,

Florida. The Secretary of the Navy shall pay not more than the fair

market value of the property, to be determined pursuant to an appraisal acceptable to the Secretary of the Navy; but in no case shall

the price exceed $4,200,000: Provided, That the exact acreage and

legal description of the real property to be acquired pursuant to this

section shall be determined by a survey satisfactory to the Secretary

of the Navy: Provided further, That the Secretary of the Navy may

require such additional terms and conditions in connection with the

land acquisition pursuant to this section as the Secretary considers

appropriate to protect the interests of the United States.

SEC. 317. Of the total amount appropriated by title IV of the

Department of Defense Appropriations Act, 2001 (Public Law 106–

259) under the heading ‘‘Research, Development, Test, and Evaluation, Navy’’ the Secretary of the Navy may establish Marine Fire

Training Centers at the Marine and Environmental Research and

Training Station and Barbers Point by grants or contracts.

SEC. 318. Notwithstanding any other provision of law, and notwithstanding the provisions in section 7306 of title 10, United

States Code, of the funds provided in the Department of Defense Appropriations Act, 2001 (Public Law 106–259) for ‘‘Operation and

Maintenance, Navy’’, $750,000 shall be available only for repair of

ex-Turner Joy.

SEC. 319. In addition to amounts appropriated or otherwise

made available for the Department of Defense elsewhere in this Act

or in the Department of Defense Appropriations Act, 2001 (Public

Law 106–259), $2,000,000 is hereby appropriated under the heading

‘‘Operation and Maintenance, Defense-Wide’’, to remain available

for obligation until September 30, 2001, only for the Defense Imagery and Mapping Agency Program.

SEC. 320. None of the funds available in the Department of Defense Appropriations Act, 2001 (Public Law 106–259) shall be used

to consolidate or incorporate Air Force radar operations maintenance and support programs or contracts into an Air Force SENSOR or a similar acquisition program.

SEC. 321. In addition to amounts appropriated elsewhere in

this Act, or in the Department of Defense Appropriations Act, 2001

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(Public Law 106–259), $1,000,000 is hereby appropriated to ‘‘Research, Development, Test and Evaluation, Air Force’’, only to develop rapid diagnostic and fingerprinting techniques along with molecular monitoring systems for the detection of nosocomial infections.

SEC. 322. Of the total amount appropriated by title IV of the

Department of Defense Appropriations Act, 2001 (Public Law 106–

259) under the heading ‘‘Research, Development, Test and Evaluation, Navy’’, $1,500,000 shall be made available by grant or contract

only to the California Central Coast Research Partnership (C3RP).

SEC. 323. FORT IRWIN NATIONAL TRAINING CENTER EXPANSION.

(a) FINDINGS.—Congress makes the following findings:

(1) The National Training Center at Fort Irwin, California,

is the only instrumented training area in the world suitable for

live fire training of heavy brigade-sized military forces and thus

provides the Army with essential training opportunities necessary to maintain and improve military readiness and promote

national security.

(2) The National Training Center must be expanded to

meet the critical need of the Army for additional training lands

suitable for the maneuver of large numbers of military personnel and equipment, which is necessitated by advances in

equipment, by doctrinal changes, and by Force XXI doctrinal

experimentation requirements.

(3) The lands being considered for expansion of the National Training Center are home to the desert tortoise and other

species that are protected under the Endangered Species Act of

1973, and the Secretary of Defense and the Secretary of the Interior, in developing a plan for expansion of the National Training Center, must provide for such expansion in a manner that

complies with the Endangered Species Act of 1973, the National

Environmental Policy Act of 1969, and other applicable laws.

(4) In order for the expansion of the National Training

Center to be implemented on an expedited basis, the Secretaries

should proceed without delay to define with specificity the key

elements of the expansion plan, including obtaining early input

regarding national security requirements, Endangered Species

Act of 1973 compliance and mitigation, and National Environmental Policy Act of 1969 compliance.

(b) PURPOSE.—The purpose of this section is to expedite the expansion of the National Training Center at Fort Irwin, California,

in a manner that is fully compliant with environmental laws.

(c) PREPARATION OF PROPOSED EXPANSION PLAN.—

(1) PREPARATION REQUIRED.—The Secretary of the Army

and the Secretary of the Interior (in this section referred to as

the ‘‘Secretaries’’) shall jointly prepare a proposed plan for the

expansion of the National Training Center at Fort Irwin, California.

(2) SUBMISSION AND AVAILABILITY.—The plan required by

paragraph (1) (in this section referred to as the ‘‘proposed expansion plan’’) shall be completed not later than 120 days after

the date of the enactment of this Act. When completed, the Secretaries shall make the proposed expansion plan available to

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the public and shall publish in the Federal Register a ‘‘notice

of availability’’ concerning the proposed expansion plan.

(d) KEY ELEMENTS OF PROPOSED EXPANSION PLAN.— (1) JOINT REPORT.—Not later than 45 days after the date

of the enactment of this Act, the Secretaries shall submit to

Congress a joint report that identifies the key elements of the

proposed expansion plan.

(2) LANDS WITHDRAWAL AND RESERVATION.—The proposed

expansion plan shall include the withdrawal and reservation of

an appropriate amount of public lands for—

(A) the conduct of combined arms military training at

the National Training Center;

(B) the development and testing of military equipment

at the National Training Center;

(C) other defense-related purposes; and

(D) conservation and research purposes.

(3) CONSERVATION MEASURES.—The proposed expansion

plan shall also include a general description of conservation

measures, anticipated to cost approximately $75,000,000, that

may be necessary and appropriate to protect and promote the

conservation of the desert tortoise and other endangered or

threatened species and their critical habitats in designated

wildlife management areas in the West Mojave Desert. The conservation measures may include—

(A) the establishment of one or more research natural

areas, which may include lands both within and outside

the National Training Center;

(B) the acquisition of private and State lands within

the wildlife management areas in the West Mojave Desert;

(C) the construction of barriers, fences, and other structures that would promote the conservation of endangered or

threatened species and their critical habitats;

(D) the funding of research studies; and

(E) other conservation measures.

(d) PRELIMINARY REVIEW OF EXPANSION PLAN.—

(1) REVIEW REQUIRED.—Not later than 90 days after the

date of the enactment of this Act, the Director of the United

States Fish and Wildlife Service shall submit to the Secretaries

a preliminary review of the proposed expansion plan (as developed as of that date). In the preliminary review, the Director

shall identify, with as much specificity as possible, an approach

for implementing the proposed expansion plan consistent with

the Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.).

(2) RELATION TO FORMAL REVIEW.—The preliminary review

under paragraph (1) shall not constitute a formal consultation

under section 7 of the Endangered Species Act of 1973 (16

U.S.C. 1536), but shall be used to assist the Secretaries in more

precisely defining the nature and scope of an expansion plan for

the National Training Center that is likely to satisfy requirements of the Endangered Species Act of 1973 and to expedite

the formal consultation process under section 7 of such Act.

(3) CONSIDERATION OF PRELIMINARY REVIEW.—In preparing

the proposed expansion plan, the Secretaries shall take into account the content of the preliminary review by the Director of

427

the United States Fish and Wildlife Service under paragraph

(1).

(e) DRAFT LEGISLATION.—The Secretaries shall submit to Congress with the proposed expansion plan a draft of proposed legislation providing for the withdrawal and reservation of public lands

for the expansion of the National Training Center. It is the sense of

the Congress that the proposed legislation should contain a provision that, if enacted, would prohibit ground-disturbing military use

of the land to be withdrawn and reserved by the legislation until

the Secretaries have certified that there has been full compliance

with the appropriate provisions of the legislation, the Endangered

Species Act of 1973, the National Environmental Policy Act of 1969,

and other applicable laws.

(f) CONSULTATION UNDER ENDANGERED SPECIES ACT OF

1973.—The Secretaries shall initiate the formal consultation required under section 7 of the Endangered Species Act of 1973 (16

U.S.C. 1536) with respect to expansion of the National Training

Center as soon as practicable and shall complete such consultation

not later than two years after the date of the enactment of this Act.

(g) ENVIRONMENTAL REVIEW.—Not later than six months following completion of the formal consultation required under section

7 of the Endangered Species Act of 1973 with respect to expansion

of the National Training Center, the Secretaries shall complete any

analysis required under the National Environmental Policy Act of

1969 with respect to the proposed expansion of the National Training Center. The analysis shall be coordinated, to the extent practicable and appropriate, with the review of the West Mojave Coordinated Management Plan that, as of the date of the enactment of this

Act, is being undertaken by the Bureau of Land Management.

(h) FUNDING.— (1) IMPLEMENTATION OF CONSERVATION MEASURES.—There

are authorized to be appropriated $75,000,000 to the Secretary

of the Army for the implementation of conservation measures

necessary for the final expansion plan for the National Training

Center to comply with the Endangered Species Act of 1973.

(2) IMPLEMENTATION OF SECTION.—The amounts of

$2,500,000 for ‘‘Operation and Maintenance, Army’’ and

$2,500,000 for ‘‘Management of Lands and Resources, Bureau

of Land Management’’ are hereby appropriated to the Secretary

of the Army and the Secretary of the Interior, respectively, only

to undertake and complete on an expedited basis the activities

specified in this section.

CHAPTER 4

DISTRICT OF COLUMBIA FEDERAL FUNDS

FEDERAL PAYMENT TO THE DISTRICT OF COLUMBIA COURTS

For an additional amount for the District of Columbia courts

for capital repairs necessitated by the recent fire damage to the

courthouse facilities, $350,000, to remain available until September

30, 2002, and for an additional amount for such repairs for the Superior Court of the District of Columbia, $50,000: Provided, That

after providing notice to the Committees on Appropriations of the

428

Senate and House of Representatives, the District of Columbia

courts may reallocate not more than $1,000,000 of the funds provided under this heading under the District of Columbia Appropriations Act, 2001, among the items and entities funded under such

heading for the costs of such repairs.

GENERAL PROVISIONS—THIS CHAPTER

SEC. 401. (a) Section 106(b) of the District of Columbia Public

Works Act of 1954 (sec. 43–1552(b), DC Code), as amended by section 133 of the District of Columbia Appropriations Act, 1990, is

amended—

(1) in the third sentence of paragraph (1), by striking

‘‘United States Treasury and’’ and all that follows through ‘‘by

the’’; and

(2) by adding at the end the following new paragraph:

‘‘(5) Not later than the 15th day of the month following each

quarter (beginning with the first quarter of fiscal year 2001), the inspector general of each Federal department, establishment, or agency receiving water services from the District of Columbia shall submit a report to the Committees on Appropriations of the House of

Representatives and Senate analyzing the promptness of payment

with respect to the services furnished to such department, establishment, or agency.’’.

(b) Section 212(b) of the District of Columbia Public Works Act

of 1954 (sec. 43–1612(b), DC Code), as amended by section 133 of

the District of Columbia Appropriations Act, 1990, is amended—

(1) in the third sentence of paragraph (1), by striking

‘‘United States Treasury and’’ and all that follows through ‘‘by

the’’; and

(2) by adding at the end the following new paragraph:

‘‘(5) Not later than the 15th day of the month following each

quarter (beginning with the first quarter of fiscal year 2001), the inspector general of each Federal department, establishment, or agency receiving sanitary sewer services from the District of Columbia

shall submit a report to the Committees on Appropriations of the

House of Representatives and Senate analyzing the promptness of

payment with respect to the services furnished to such department,

establishment, or agency.’’.

(c) The amendments made by this section shall take effect as if

included in the enactment of section 133 of the District of Columbia

Appropriations Act, 1990.

SEC. 402. (a) The Act entitled ‘‘An Act donating certain Lots in

the City of Washington for Schools for Colored Children in the District of Columbia’’, approved July 28, 1866 (14 Stat. 343), is amended by striking the second sentence.

(b) Section 319 of the Revised Statutes of the United States relating to the District of Columbia and Post Roads (sec. 31–206, D.C.

Code) is repealed.

SEC. 403. RESTRICTIONS ON USE OF ANNUAL UNOBLIGATED

BALANCE IN D.C. CRIME VICTIMS COMPENSATION FUND. (a) IN GENERAL.—Section 16(d) of the Victims of Violent Crime Compensation

Act of 1996 (sec. 3–435(d), D.C. Code), as added by section 160(d)

of the District of Columbia Appropriations Act, 2000, is amended to

read as follows:

429

‘‘(d) Any unobligated balance existing in the Fund in excess of

$250,000 as of the end of each fiscal year (beginning with fiscal year

2000) may be used only in accordance with a plan developed by the

District of Columbia and approved by the Committees on Appropriations of the Senate and House of Representatives, the Committee

on Government Reform of the House of Representatives, and the

Committee on Governmental Affairs of the Senate, and not less than

80 percent of such balance shall be used for direct compensation

payments to crime victims through the Fund under this section and

in accordance with this Act.’’.

(b) EFFECTIVE DATE.—The amendment made by subsection (a)

shall take effect September 30, 2000.

SEC. 404. (a) Notwithstanding any provision of the District of

Columbia Appropriations Act, 2001, the District of Columbia may

fund the programs identified under the heading ‘‘Reserve’’ in H.R.

4942, One Hundred Sixth Congress, as introduced, subject to the

conditions described under such heading and upon certification by

the District of Columbia Financial Responsibility and Management

Assistance Authority to the Committees on Appropriations of the

Senate and House of Representatives that the Chief Financial Officer of the District of Columbia, the Mayor of the District of Columbia, and the Council of the District of Columbia have identified and

implemented such spending reductions as may be necessary to ensure that the District of Columbia will not have a budget deficit for

fiscal year 2001.

(b)(1) Notwithstanding any provision of the District of Columbia Appropriations Act, 2001, the use by the District of the funds

described in paragraph (2) for Pay-As-You-Go Capital Funds shall

be optional.

(2) The funds described in this paragraph are funds set aside

for the reserve established by section 202(j) of the District of Columbia Financial Responsibility and Management Assistance Act of

1995 (as amended by section 148 of the District of Columbia Appropriations Act, 2000) which are not used for purposes of any reserve

funds established under the District of Columbia Appropriations

Act, 2001, or any amendments made by such Act.

(c)(1) The Mayor of the District of Columbia shall deposit the

annual interest savings resulting from debt reductions using the

proceeds of the tobacco securitization program into the emergency

reserve fund established under section 450A of the District of Columbia Home Rule Act (as added by section 159 of the District of

Columbia Appropriations Act, 2001).

(2) This subsection shall apply with respect to fiscal year 2001

and each succeeding fiscal year until the requirements of section

450A of the District of Columbia Home Rule Act have been met.

SEC. 405. Notwithstanding any provision of the District of Columbia Appropriations Act, 2001, quarterly disbursements shall be

calculated and paid to District of Columbia public charter schools

during fiscal year 2001 in accordance with section 107a(b) of the

Uniform Per Student Funding Formula for Public Schools and Public Charter Schools and Tax Conformity Clarification Amendment

Act of 1998 (sec. 31–2906.1(b), DC Code), as amended by the Enrollment Integrity Act.

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SEC. 406. (a) The provisions of H.R. 5547 (as enacted into law

by H.R. 4942 of the 106th Congress) are repealed and shall be

deemed for all purposes (including section 1(b) of H.R. 4942) to

have never been enacted.

(b) The repeal made by this section shall take effect as if included in H.R. 4942 of the 106th Congress on the date of its enactment.

CHAPTER 5

ENERGY AND WATER DEVELOPMENT

DEPARTMENT OF DEFENSE—CIVIL

DEPARTMENT OF THE ARMY

CORPS OF ENGINEERS—CIVIL

GENERAL INVESTIGATIONS

For an additional amount for ‘‘General Investigations’’,

$900,000, to remain available until expended: Provided, That

$100,000 shall be available for a reconnaissance study of shore protection needs at North Topsail Beach, North Carolina; $100,000

shall be available for a reconnaissance study for the Passiac County, New Jersey, water infrastructure project; $100,000 shall be

available for a reconnaissance study of flooding, drainage and other

related problems in the Cayuga Creek Watershed, New York; and

$600,000 shall be available for a cost-shared feasibility study of the

restoration of the lower St. Anthony’s Falls natural rapids in Minnesota.

CONSTRUCTION, GENERAL

For an additional amount for ‘‘Construction, General’’,

$2,750,000, to remain available until expended: Provided, That

$75,000 shall be available for planning and design of a project to

provide for floodplain evacuation in the watershed of Pond Creek,

Kentucky; $100,000 shall be available for design of recreation and

access features at the Louisville Waterfront Park in Kentucky;

$500,000 shall be available for a Limited Reevaluation Report for

the Central Boca Raton segment of the Palm Beach County, Florida,

shore protection project; and $75,000 shall be available to conduct

research on the eradication of Eurasian water milfoil at Houghton

Lake, Michigan: Provided further, That the Secretary of the Army,

acting through the Chief of Engineers, is authorized and directed to

use $2,000,000 of the funds appropriated herein to initiate design

and construction of the Hawaii Water Management Project, including Waiahole Ditch on Oahu, Kau Ditch on Maui, Pioneer Mill

Ditch on Hawaii, and the complex system on the west side of Kauai:

Provided further, That the Secretary of the Army may use up to

$5,000,000 of previously appropriated funds to carry out the Abandoned and Inactive Noncoal Mine Restoration program authorized

by section 560 of Public Law 106–53.

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FLOOD CONTROL, MISSISSIPPI RIVER AND TRIBUTARIES, ARKANSAS, IL- LINOIS, KENTUCKY, LOUISIANA, MISSISSIPPI, MISSOURI, AND TEN- NESSEE

For an additional amount for ‘‘Flood Control, Mississippi River

and Tributaries, Arkansas, Illinois, Kentucky, Louisiana, Mississippi, Missouri, and Tennessee’’, $3,500,000, to remain available

until expended, for prosecuting work of repair, restoration or maintenance of the Mississippi River levees, and for the correction of deficiencies in the mainline Mississippi River levees.

DEPARTMENT OF THE INTERIOR

BUREAU OF RECLAMATION

WATER AND RELATED RESOURCES

For an additional amount for ‘‘Water and Related Resources’’,

$2,000,000, to remain available until expended, for construction of

the Mid-Dakota Rural Water System, in addition to amounts made

available under the Energy and Water Appropriations Development

Act, 2001.

DEPARTMENT OF ENERGY

ENERGY PROGRAMS

ENERGY SUPPLY

For an additional amount for ‘‘Energy Supply’’, $800,000, to remain available until expended, for the Prime, LLC, of central South

Dakota, for final engineering and project development of the integrated ethanol complex, including an ethanol unit, waste treatment

system, and enclosed cattle feed lot.

SCIENCE

For an additional amount for ‘‘Science’’, $1,000,000, to remain

available until expended, for high temperature superconducting research and development at Boston College.

CHAPTER 6

GENERAL PROVISIONS—THIS CHAPTER

SEC. 601. Of the funds appropriated under the heading Department of State, International Narcotics Control and Law Enforcement, in the Foreign Operations, Export Financing, and Related

Programs Appropriations Act, 2001, not less than $1,350,000 shall

be available only for the Protection Project to continue its study of

international trafficking, prostitution, slavery, debt bondage and

other abuses of women and children.

SEC. 602. EMBASSY COMPENSATION AUTHORITY. Funds made

available under the heading ‘‘Other Bilateral Economic Assistance,

Economic Support Fund’’ included in the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 2001

(Public Law 106–429) may be made available, notwithstanding any

other provision of law, to provide payment to the government of the

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People’s Republic of China for property loss and damage arising out

of the May 7, 1999 incident in Belgrade, Federal Republic of Yugoslavia.

CHAPTER 7

DEPARTMENT OF THE INTERIOR

BUREAU OF LAND MANAGEMENT

LAND ACQUISITION

For an additional amount for ‘‘Land Acquisition’’, $5,000,000,

to be derived from the Land and Water Conservation Fund and to

remain available until expended, to carry out the provisions of title

VI of the Steens Mountain Cooperative Management and Protection

Act (Public Law 106–399): Provided, That sums necessary to complete the individual land exchanges identified under title VI shall

be provided within thirty days of each land exchange.

UNITED STATES FISH AND WILDLIFE SERVICE

RESOURCE MANAGEMENT

For an additional amount for ‘‘Resource Management’’,

$500,000 for a grant to the Center for Reproductive Biology at

Washington State University.

MULTINATIONAL SPECIES CONSERVATION FUND

For an additional amount for the ‘‘Multinational Species Conservation Fund’’, $750,000, to remain available until expended, for

Great Ape conservation activities authorized by law.

NATIONAL PARK SERVICE

OPERATION OF THE NATIONAL PARK SYSTEM

For an additional amount for ‘‘Operation of the National Park

System’’, $100,000 for completion of studies related to the Arlington

Boathouse in Virginia.

NATIONAL RECREATION AND PRESERVATION

For an additional amount for ‘‘National Recreation and Preservation’’, $1,600,000, to remain available until expended, of which

$500,000 is for the National Constitution Center in Philadelphia,

Pennsylvania and $1,100,000 is for a grant to the Historic New

Bridge Landing Park Commission.

HISTORIC PRESERVATION FUND

For an additional amount for the ‘‘Historic Preservation Fund’’,

$100,000 for a grant to the Massillon Heritage Foundation, Inc. in

Massillon, Ohio.

CONSTRUCTION

For an additional amount for ‘‘Construction’’, $3,500,000, to remain available until expended, of which $1,500,000 is for the Stones

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River National Battlefield and $2,000,000 is for the Millennium

Cultural Cooperative Park.

DEPARTMENT OF ENERGY

ENERGY CONSERVATION

For an additional amount for ‘‘Energy Conservation’’, $300,000,

to remain available until expended, for a grant to the Oak Ridge

National Laboratory/Nevada Test Site Development Corporation for

the development of (1) cooling, refrigeration, and thermal energy

management equipment capable of using natural gas or hydrogen

fuels; and (2) improvement of the reliability of heat-activated cooling, refrigeration, and thermal energy management equipment used

in combined heating, cooling, and power applications.

RELATED AGENCY

WOODROW WILSON INTERNATIONAL CENTER FOR SCHOLARS

PAYMENT TO ENDOWMENT FUND

For payment to the endowment fund of the Woodrow Wilson International Center for Scholars $5,000,000: Provided, That such

funds may be invested in investments approved by the Board of

Trustees of the Woodrow Wilson International Center for Scholars

and the income from such investments may be used to support the

programs of the Center that the Board of Trustees and the Director

of the Center determine appropriate.

GENERAL PROVISION—THIS CHAPTER

SEC. 701. In addition to amounts appropriated in Public Law

106–291 to the Indian Health Service under the heading ‘‘Indian

Health Services’’, $30,000,000, to remain available until expended,

is appropriated as follows: (1) $15,000,000 shall be provided to the Alaska Federation

of Natives as a direct lump sum payment within 30 days of enactment of this Act for its Alaska Native Sobriety and Alcohol

Control Program: Provided, That the President of the Alaska

Federation of Natives shall make grants to each Alaska Native

regional non-profit corporation (as listed in section 103(a)(2) of

Public Law 104–193 (110 Stat. 2159)) in which there are villages, including established villages and organized cities under

state law, that have voted to ban the sale, importation, or possession of alcohol pursuant to local option state law: Provided

further, That such grants shall be used to (1) employ Village

Public Safety Officers (hereinafter referred to as ‘‘VPSO’s’’)

under such terms and conditions that encourage retention of

such VPSO’s and that are consistent with agreements with the

State of Alaska for the provision of such VPSO services, (2) acquisition of law enforcement equipment or services, or (3) develop and implement restorative justice programs recognized

under state sentencing law as a community based complement

or alternative to incarceration or other penalty: Provided further, That funds may also be used for activities and programs

to further the sobriety movement including education and treatVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00437 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.003 pfrm03 PsN: HR1033
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ment. The President of the Alaska Federation of Natives shall

submit a report on its activities and those of its grantees including administrative costs and persons served by December 31,

2001; and

(2) $15,000,000 shall be provided to the Indian Health

Service for drug and alcohol prevention and treatment services

for non-Alaska tribes.

CHAPTER 8

GENERAL PROVISIONS—THIS CHAPTER

SEC. 801. There are appropriated to the Health Resources and

Services Administration in the Department of Health and Human

Services, for the construction of the Biotechnology Science Center at

the Marshall University in Huntington, West Virginia, $25,000,000,

to remain available until expended.

SEC. 802. There are appropriated to the Health Resources and

Services Administration in the Department of Health and Human

Services, for the construction of the Christian Nurses Hospice in

Brentwood, New York, $400,000.

SEC. 803. There are appropriated to the Institute of Museum

and Library Services, for expansion of the marine biology program

at the Long Island Maritime Museum, $250,000.

CHAPTER 9

LEGISLATIVE BRANCH

CONGRESSIONAL OPERATIONS

HOUSE OF REPRESENTATIVES

PAYMENTS TO WIDOWS AND HEIRS OF DECREASED MEMBERS OF

CONGRESS

For payment to Laura Y. Bateman, widow of Herbert H. Bateman, late a Representative from the State of Virginia, $141,300.

For payment to Susan L. Vento, widow of Bruce F. Vento, late

a Representative from the State of Minnesota, $141,300.

For payment to Betty Lee Dixon, widow of Julian C. Dixon, late

a Representative from the State of California, $141,300.

ARCHITECT OF THE CAPITOL

CAPITOL BUILDINGS AND GROUNDS

CAPITOL BUILDINGS

SALARIES AND EXPENSES

For an additional amount for ‘‘CAPITOL BUILDINGS AND

GROUNDS—CAPITOL BUILDINGS—SALARIES AND EXPENSES’’ for necessary expenses for construction of emergency egress from the fourth

floor of the Capitol Building, $1,033,000, to remain available until

expended: Provided, That the entire amount is designated by the

Congress as an emergency requirement pursuant to section

435

251(b)(2)(A) of the Balanced Budget and Emergency Deficit Control

Act of 1985, as amended.

LIBRARY OF CONGRESS

SALARIES AND EXPENSES

For the Library of Congress, $25,000,000, to remain available

until expended, for necessary salaries and expenses of the National

Digital Information Infrastructure and Preservation Program; and

an additional $75,000,000, to remain available until expended, for

such purposes: Provided, That the portion of such additional

$75,000,000, which may be expended shall not exceed an amount

equal to the matching contributions (including contributions other

than money) for such purposes that (1) are received by the Librarian

of Congress for the program from non-Federal sources, and (2) are

received before March 31, 2003: Provided further, That such program shall be carried out in accordance with a plan or plans approved by the Committee on House Administration of the House of

Representatives, the Committee on Rules and Administration of the

Senate, the Committee on Appropriations of the House of Representatives, and the Committee on Appropriations of the Senate: Provided further, That of the total amount appropriated, $5,000,000

may be expended before the approval of a plan to develop such a

plan, and to collect or preserve essential digital information which

otherwise would be uncollectible: Provided further, That the balance

in excess of such $5,000,000 shall not be expended without approval

in advance by the Committee on Appropriations of the House of Representatives and the Committee on Appropriations of the Senate:

Provided further, That the plan under this heading shall be developed by the Librarian of Congress jointly with entities of the Federal government with expertise in telecommunications technology

and electronic commerce policy (including the Secretary of Commerce and the Director of the White House Office of Science and

Technology Policy) and the National Archives and Records Administration, and with the participation of representatives of other Federal, research, and private libraries and institutions with expertise

in the collection and maintenance of archives of digital materials

(including the National Library of Medicine, the National Agricultural Library, the National Institute of Standards and Technology,

the Research Libraries Group, the Online Computer Library Center,

and the Council on Library and Information Resources) and representatives of private business organizations which are involved in

efforts to preserve, collect, and disseminate information in digital

formats (including the Open e-Book Forum): Provided further, That

notwithstanding any other provision of law, effective with the One

Hundred Seventh Congress and each succeeding Congress the chair

of the Subcommittee on the Legislative Branch of the Committee on

Appropriations of the House of Representatives shall serve as a

member of the Joint Committee on the Library with respect to the

Library’s financial management, organization, budget development

and implementation, and program development and administration, as well as any other element of the mission of the Library of

Congress which is subject to the requirements of Federal law.

436

GENERAL PROVISIONS—THIS CHAPTER

SEC. 901. RETIREMENT CREDIT FOR CERTAIN LEGISLATIVE

BRANCH EMPLOYEES. (a) FORMER EMPLOYEES OF CONGRESSIONAL

CAMPAIGN COMMITTEES.—

(1) CSRS.—Section 8332(m) of title 5, United States Code,

as amended by section 312 of the Legislative Branch Appropriations Act, 2000, is amended—

(A) by redesignating paragraphs (2) and (3) as paragraphs (3) and (4); and

(B) by inserting after paragraph (1) the following new

paragraph:

‘‘(2) Upon application to the Office of Personnel Management,

any individual who was an employee on the date of the enactment

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

5 years or more of creditable civilian service under this section (exclusive of service for which credit is allowed under this subsection)

shall be allowed credit (as service as a Congressional employee) for

service before December 31, 1990, while employed by the Democratic

Senatorial Campaign Committee, the Republican Senatorial Campaign Committee, the Democratic National Congressional Committee, or the Republican National Congressional Committee, if—

‘‘(A) such employee has at least 4 years and 6 months of

service on such committees as of December 31, 1990; and

‘‘(B) such employee makes a deposit to the Fund in an

amount equal to the amount which would be required under

section 8334(c) if such service were service as a Congressional

employee.’’.

(2) FERS.—Section 8411 of title 5, United States Code, is

amended by adding at the end the following new subsection:

‘‘(i)(1) Upon application to the Office of Personnel Management,

any individual who was an employee on the date of the enactment

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

5 years or more of creditable civilian service under this section (exclusive of service for which credit is allowed under this subsection)

shall be allowed credit (as service as a Congressional employee) for

service before December 31, 1990, while employed by the Democratic

Senatorial Campaign Committee, the Republican Senatorial Campaign Committee, the Democratic National Congressional Committee, or the Republican National Congressional Committee, if—

‘‘(A) such employee has at least 4 years and 6 months of

service on such committees as of December 31, 1990; and

‘‘(B) such employee deposits to the Fund an amount equal

to 1.3 percent of the base pay for such service, with interest.

‘‘(2) The Office shall accept the certification of the President of

the Senate (or the President’s designee) or the Speaker of the House

of Representatives (or the Speaker’s designee), as the case may be,

concerning the service of, and the amount of compensation received

by, an employee with respect to whom credit is to be sought under

this subsection.

‘‘(3) An individual shall not be granted credit for such service

under this subsection if eligible for credit under section 8332(m) for

such service.’’.

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(b) FORMER EMPLOYEES OF LEGISLATIVE SERVICE ORGANIZATIONS.—

(1) SERVICE OF EMPLOYEES OF LEGISLATIVE SERVICE ORGANIZATIONS.—

(A) IN GENERAL.—Subject to succeeding provisions of

this paragraph, upon application to the Office of Personnel

Management in such form and manner as the Office shall

prescribe, any individual who performed service as an employee of a legislative service organization of the House of

Representatives (as defined and authorized in the One

Hundred Third Congress) and whose pay was paid in

whole or in part by a source other than the Clerk Hire account of a Member of the House of Representatives (other

than an individual described in paragraph (6)) shall be

entitled—

(i) to receive credit under the provisions of subchapter III of chapter 83 or chapter 84 of title 5,

United States Code (whichever would be appropriate),

as Congressional employee service, for all such service;

and

(ii) to have all pay for such service which was so

paid by a source other than the Clerk Hire account of

a Member included (in addition to any amounts otherwise included in basic pay) for purposes of computing

an annuity payable out of the Civil Service Retirement

and Disability Fund.

(B) DEPOSIT REQUIREMENT.—In order to be eligible for

the benefits described in subparagraph (A), an individual

shall be required to pay into the Civil Service Retirement

and Disability Fund an amount equal to the difference

between—

(i) the employee contributions that were actually

made to such Fund under applicable provisions of law

with respect to the service described in subparagraph

(A); and

(ii) the employee contributions that would have

been required with respect to such service if the

amounts described in subparagraph (A)(ii) had also

been treated as basic pay.

The amount required under this subparagraph shall include interest, which shall be computed under section

8334(e) of title 5, United States Code.

(C) CERTAIN OFFSETS REQUIRED IN ORDER TO PREVENT

DOUBLE CONTRIBUTIONS AND BENEFITS.—In the case of any

period of service as an employee of a legislative service organization which constituted employment for purposes of

title II of the Social Security Act—

(i) any pay for such service (as described in subparagraph (A)(ii)) with respect to which the deposit

under subparagraph (B) would otherwise be computed

by applying the first sentence of section 8334(a)(1) of

title 5, United States Code, shall instead be computed

in a manner based on section 8334(k) of such title; and

438

(ii) any retirement benefits under subchapter III of

chapter 83 of title 5, United States Code, shall be subject to offset (to reflect that portion of benefits under

title II of the Social Security Act attributable to pay referred to in subparagraph (A)) similar to that provided

for under section 8349 of such title.

(2) SURVIVOR ANNUITANTS.—For purposes of survivor annuities, an application authorized by this section may, in the case

of an individual under paragraph (1) who has died, be made

by a survivor of such individual.

(3) RECOMPUTATION OF ANNUITIES.—Any annuity or survivor annuity payable as of when an individual makes the deposit required under paragraph (1) shall be recomputed to take

into account the crediting of service under such paragraph for

purposes of amounts accruing for any period beginning on or

after the date on which the individual makes the deposit.

(4) CERTIFICATION OF SPEAKER.—The Office of Personnel

Management shall accept the certification of the Speaker of the

House of Representatives (or the Speaker’s designee) concerning

the service of, and the amount of compensation received by, an

employee with respect to whom credit is to be sought under this

subsection.

(5) NOTIFICATION AND OTHER DUTIES OF THE OFFICE OF

PERSONNEL MANAGEMENT.—

(A) NOTICE.—The Office of Personnel Management

shall take such action as may be necessary and appropriate

to inform individuals of any rights they might have as a

result of the enactment of this subsection.

(B) ASSISTANCE.—The Office shall, on request, assist

any individual in obtaining from any department, agency,

or other instrumentality of the United States any information in the possession of such instrumentality which may be

necessary to verify the entitlement of such individual to

have any service credited under this subsection or to have

an annuity recomputed under paragraph (3).

(C) INFORMATION.—Any department, agency, or other

instrumentality of the United States which possesses any

information with respect to an individual’s performance of

any service described in paragraph (1) shall, at the request

of the office, furnish such information to the Office.

(6) EXCLUSION OF CERTAIN EMPLOYEES.—An individual is

not eligible for credit under this subsection if the individual

served as an employee of the House of Representatives for an

aggregate period of 5 years or longer after the individual’s final

period of service as an employee of a legislative service organization of the House of Representatives.

(7) MEMBER DEFINED.—In this subsection, the term ‘‘Member of the House of Representatives’’ includes a Delegate or Resident Commissioner to the Congress.

SEC. 902. (a) The Legislative Branch Appropriations Act, 2001

is amended under the subheading ‘‘MISCELLANEOUS ITEMS’’ under

the heading ‘‘SENATE’’ under title I by striking ‘‘$8,655,000’’ and

inserting ‘‘$25,155,000’’.

439

(b) The amendment made by subsection (a) shall take effect as

if included in the enactment of the Legislative Branch Appropriations Act, 2001.

SEC. 903. Beginning on the first day of the 107th Congress, the

Presiding Officer of the Senate shall apply all of the precedents of

the Senate under Rule XXVIII in effect at the conclusion of the

103rd Congress. Further that there is now in effect a Standing order

of the Senate that the reading of conference reports is no longer required, if the said conference report is available in the Senate.

CHAPTER 10

GENERAL PROVISIONS—THIS CHAPTER

SEC. 1001. In addition to amounts appropriated or otherwise

made available in the Military Construction Appropriations Act,

2001, $43,500,000 is hereby appropriated to the Department of Defense, to remain available until September 30, 2005, as follows: ‘‘Military Construction, Army’’, $27,000,000;

‘‘Military Construction, Air Force’’, $12,000,000;

‘‘Military Construction, Army National Guard’’, $4,500,000:

Provided, That notwithstanding any other provision of law, such

funds may be obligated or expended to carry out planning and design, military construction, and family housing projects not otherwise authorized by law.

SEC. 1002. TRANSFER OF JURISDICTION, MELROSE AIR FORCE

RANGE, NEW MEXICO. (a) TRANSFER REQUIRED.—(1) The Secretary

of the Interior shall transfer, without reimbursement, to the administrative jurisdiction of the Secretary of the Air Force the surface estate in the real property described in paragraph (2), which consists

of 6,713.90 acres of public domain lands in Roosevelt County, New

Mexico.

(2) The transfer of administrative jurisdiction under paragraph

(1) encompasses the following sections (or portions thereof):

(A) In Township 1 North, Range 30 East, New Mexico

Prime Meridian:

(i) Sec. 2 (S1⁄2).

(ii) Sec. 11. All.

(iii) Sec. 20 (S1⁄2SE1⁄4).

(iv) Sec. 28. All.

(B) In Township 1 South, Range 30 East, New Mexico

Prime Meridian:

(i) Sec. 2 (Lots 1–12, S1⁄2).

(ii) Sec. 3 (Lots 1–12, S1⁄2).

(iii) Sec. 4 (Lots 1–12, S1⁄2).

(iv) Sec. 6 (Lots 1 and 2).

(v) Sec. 9 (N1⁄2, N1⁄2S1⁄2).

(vi) Sec. 10 (N1⁄2, N1⁄2S1⁄2).

(vii) Sec. 11 (N1⁄2, N1⁄2S1⁄2).

(C) In Township 2 North, Range 30 East, New Mexico

Prime Meridian:

(i) Sec. 20 (E1⁄2S1⁄4).

(ii) Sec. 21 (SW1⁄4, W1⁄2SE1⁄4).

(iii) Sec. 28 (W1⁄2E1⁄2, W1⁄2).

(iv) Sec. 29 (E1⁄2E1⁄2).

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(v) Sec. 32 (E1⁄2E1⁄2).

(vi) Sec. 33 (W1⁄2E1⁄2, NW1⁄4, S1⁄2SW1⁄4).

(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 (S1⁄2).

(ii) Sec. 24 (S1⁄2SW1⁄4 and that portion of the E1⁄2 lying

south of the Interstate Highway 90 right-of-way).

(iii) Sec. 26. All.

(B) In Township 16 North, Range 21 East, Willamette Meridian:

(i) Sec. 4 (SW1⁄4SW1⁄4).

(ii) Sec. 12 (SE1⁄4).

(iii) Sec. 18 (Lots 1, 2, 3, and 4, E1⁄2 and E1⁄2W1⁄2).

(C) In Township 17 North, Range 21 East, Willamette Meridian:

(i) Sec. 30 (Lots 3 and 4).

(ii) Sec. 32 (NE1⁄4SE1⁄4).

(D) In Township 16 North, Range 22 East, Willamette Meridian:

(i) Sec. 2 (Lots 1, 2, 3, and 4, S1⁄2N1⁄2 and S1⁄2).

(ii) Sec. 4 (Lots 1, 2, 3, and 4, S1⁄2N1⁄2 and S1⁄2).

(iii) Sec. 10. All.

(iv) Sec. 14. All.

(v) Sec. 20 (SE1⁄4SW1⁄4).

(vi) Sec. 22. All.

(vii) Sec. 26 (N1⁄2).

(viii) Sec. 28 (N1⁄2).

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(E) In Township 16 North, Range 23 East, Willamette Meridian:

(i) Sec. 18 (Lots 3 and 4, E1⁄2SW1⁄4, W1⁄2SE1⁄4, and that

portion of the E1⁄2SE1⁄4 lying westerly of the westerly rightof-way line of Huntzinger Road).

(ii) Sec. 20 (That portion of the SW1⁄4 lying westerly of

the easterly right-of-way line of the railroad).

(iii) Sec. 30 (Lots 1 and 2, NE1⁄4 and E1⁄2NW1⁄4).

(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 SE1⁄4).

(iii) Sec. 20 (S1⁄2).

(B) In Township 16 North, Range 21 East, Willamette Meridian:

(i) Sec. 4 (Lots 1, 2, 3, and 4, S1⁄2NE1⁄4).

(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 (S1⁄2SE1⁄4).

(ii) Sec. 34 (W1⁄2).

(d) USE OF MINERAL MATERIALS.—Notwithstanding subsection

(c) or the Act of July 31, 1947, the Secretary of the Army may use,

without application to the Secretary of the Interior, the sand, gravel,

or similar mineral material resources on the lands described in subsections (a) and (c), of the type subject to disposition under the Act

of July 31, 1947, when the use of such resources is required for construction needs on the Yakima Training Center, Washington.

CHAPTER 11

DEPARTMENT OF TRANSPORTATION

GENERAL PROVISIONS—THIS CHAPTER

SEC. 1101. Section 5309(g)(4)(D)(2) of title 49, United States

Code, is amended by striking ‘‘light’’.

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SEC. 1102. Item number 630 of the table contained in section

1602 of the Transportation Act for the 21st Century (112 Stat. 280),

relating to Buffalo, New York, is amended by striking ‘‘Design and

construct Outer Harbor Bridge in Buffalo’’ and inserting ‘‘Transportation infrastructure improvements, Inner Harbor/Redevelopment

project, Buffalo’’.

SEC. 1103. If the State of Arkansas incorporates into the relocation of U.S. Route 71 through Fort Chaffee, Arkansas, land obtained by the State from the Federal Government as a result of the

closure of a military installation, the Secretary of Transportation

shall credit to the State share of the cost of the relocation the fair

market value of such land .

SEC. 1104. For an additional amount to enable the Secretary of

Transportation to make a grant to the Huntsville International Airport, $2,500,000, to be derived from the airport and airway trust

fund, to remain available until expended.

SEC. 1105. Notwithstanding any other provision of law, for necessary expenses for the Southeast Light Rail Extension Project in

Dallas, Texas, $1,000,000, to be derived from the Mass Transit Account of the Highway Trust Fund and to remain available until expended.

SEC. 1106. Section 1105(c) of the Intermodal Surface Transportation Efficiency Act of 1991 (105 Stat. 2032–2033) is amended by

striking paragraph (38) and replacing it with the following—

‘‘(38) The Ports-to-Plains Corridor from Laredo, Texas, via

I–27 to Denver, Colorado, shall include:

‘‘(A) In the State of Texas the Ports-to-Plains Corridor

shall generally follow—

‘‘(i) I–35 from Laredo to United States Route 83 at

Exit 18;

‘‘(ii) United States Route 83 from Exit 18 to

Carrizo Springs;

‘‘(iii) United States Route 277 from Carrizo

Springs to San Angelo;

‘‘(iv) United States Route 87 from San Angelo to

Sterling City;

‘‘(v) From Sterling City to Lamesa, the Corridor

shall follow United States Route 87 and, the corridor

shall also follow Texas Route 158 from Sterling City to

I–20, then via I–20 West to Texas Route 349 and, Texas

Route 349 from Midland to Lamesa;

‘‘(vi) United States Route 87 from Lamesa to Lubbock;

‘‘(vii) I–27 from Lubbock to Amarillo; and

‘‘(viii) United States Route 287 from Amarillo to

Dumas.

‘‘(B) The corridor designation contained in paragraph

(A) shall take effect only if the Texas Transportation Commission has not designated the Ports-to-Plains Corridor in

Texas by June 30, 2001.’’.

SEC. 1107. For an additional amount to enable the Secretary of

Transportation to make a grant for the Newark-Elizabeth rail link

project, New Jersey, $3,000,000, to be derived from the Mass TranVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00446 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.003 pfrm03 PsN: HR1033
443

sit Account of the Highway Trust Fund and to remain available

until expended.

SEC. 1108. Section 5309(m)(3)(C) of Title 49 United States Code

shall not apply to the funds made available in the Department of

Transportation and Related Agencies Appropriations Act, 2001: Provided, That notwithstanding any other provision of law, the 14th

Street Bridge, Virginia; Chouteau Bridge, Jackson County, Missouri; Clement C. Clay Bridge replacement, Morgan/Madison counties, Alabama; Fairfield-Benton-Kennebec River Bridge, Maine;

Florida Memorial Bridge, Florida; Historic Woodrow Wilson Bridge,

Mississippi; Missisquoi Bay Bridge, Vermont; Oaklawn Bridge,

South Pasadena, California; Pearl Harbor Memorial Bridge replacement, Connecticut; Powell County Bridge, Montana; Santa

Clara Bridge, Oxnard, California; Star City Bridge, West Virginia;

US 231 Bridge over Tennessee River, Alabama; US 54/US 69

Bridge, Kansas; Waimalu Bridge replacement on I–1, Hawaii;

Washington Bridge, Rhode Island are eligible in fiscal year 2001

under section 144(g)(2) of title 23, United States Code: Provided further, That section 378 of Public Law 106–346 is amended by inserting after ‘‘US 101’’ the following: ‘‘and Interstate 5 Trade Corridor’’.

SEC. 1109. Notwithstanding any other provision of law, in addition to funds otherwise appropriated in this or any other Act for

fiscal year 2001, $4,000,000 is hereby appropriated from the Highway Trust Fund for Commercial Remote Sensing Products and Spatial Information Technologies under section 5113 of Public Law

105–178, as amended: Provided, That such funds are used to study

the creation of a new highway right of way south of I–10 along the

Mississippi Gulf Coast by relocating the existing railroad right of

way out of downtown areas.

SEC. 1110. Amtrak is authorized to obtain services from the Administrator of General Services, and the Administrator is authorized to provide services to Amtrak, under sections 201(b) and 211(b)

of the Federal Property and Administrative Services Act of 1949 (40

U.S.C. 481(b) and 491(b)) for fiscal year 2001 and each fiscal year

thereafter until the fiscal year that Amtrak operates without Federal

operating grant funds appropriated for its benefit, as required by

sections 24101(d) and 24104(a) of title 49, United States Code.

SEC. 1111. Of the funds made available in the ‘‘Alteration of

bridges’’ account of the Department of Transportation and Related

Agencies Appropriations Act, 2001 for the Fox River Bridge,

$575,000 shall be transferred by the Secretary of Transportation to

the City of Oshkosh for removal of the bridge located at mile point

56.9 of the Fox River in Oshkosh, Wisconsin. The United States

shall assume no responsibility for project management relating to

removal of the bridge.

SEC. 1112. Notwithstanding section 27 of the Merchant Marine

Act, 1920 (46 App. U.S.C. 883), section 8 of the Act of June 19, 1886

(46 App. U.S.C. 289), and section 12106 of title 46, United States

Code, the Secretary of Transportation may issue a certificate of documentation with appropriate endorsement for employment in the

coastwise trade for the following vessels:

(1) M/V WELLS GRAY (State of Alaska registration number AK 9452 N; former Canadian registration number 154661);

and

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(2) ANNANDALE (United States official number 519434).

SEC. 1113. CONVEYANCE OF COAST GUARD PROPERTY IN MID- DLETOWN, 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 rightsof-way for access and such easements as are necessary for

continued operation of the LORAN station;

(B) preserve other existing easements for public roads

and highways, public utilities, irrigation ditches, railroads,

and pipelines; and

(C) impose such other restrictions on use of the property conveyed as are necessary to protect the safety, security,

and continued operation of the LORAN station.

(2) FIREBREAKS AND FENCE.—(A) The Administrator may

not convey any property under this section unless the County

and the Commandant of the Coast Guard enter into an agreement with the Administrator under which the County is required, in accordance with design specifications and maintenance standards established by the Commandant—

(i) to establish and construct within 6 months after the

date of the conveyance, and thereafter to maintain,

firebreaks on the property to be conveyed; and

(ii) construct within 6 months after the date of conveyance, and thereafter maintain, a fence approved by the

Commandant along the property line between the property

conveyed and adjoining Coast Guard property.

(B) The agreement shall require that—

(i) the County shall pay all costs of establishment, construction, and maintenance of firebreaks under subparagraph (A)(i); and

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(ii) the Commandant shall provide all materials needed to construct a fence under subparagraph (A)(ii), and the

County shall pay all other costs of construction and maintenance of the fence.

(3) COVENANTS APPURTENANT.—The Administrator shall

take actions necessary to render the requirement to establish,

construct, and maintain firebreaks and a fence under paragraph (2) and other requirements and conditions under paragraph (1), under the deed conveying the property to the County,

covenants that run with the land for the benefit of land retained by the United States.

(d) REVERSIONARY INTEREST.—During the five-year period beginning on the date the Administrator makes the conveyance authorized by subsection (a), the real property conveyed pursuant to

this section, at the option of the Administrator, shall revert to the

United States and be placed under the administrative control of the

Administrator, if—

(1) the County sells, conveys, assigns, exchanges, or encumbers the property conveyed or any part thereof;

(2) the County fails to maintain the property conveyed in a

manner consistent with the terms and conditions in subsection

(c);

(3) the County conducts any commercial activities at the

property conveyed, or any part thereof, without approval of the

Secretary; or

(4) at least 30 days before the reversion, the Administrator

provides written notice to the owner that the property or any

part thereof is needed for national security purposes.

SEC. 1114. CONVEYANCE OF COAST GUARD PROPERTY TO TOWN

OF NANTUCKET, MASSACHUSETTS. (a) AUTHORITY TO CONVEY.—

(1) IN GENERAL.—Notwithstanding any other law, the Administrator of the General Services Administration (Administrator) or the Commandant of the Coast Guard (Commandant),

as appropriate, shall convey to the Town of Nantucket, Massachusetts (Town), without monetary consideration, all right, title,

and interest of the United States of America (United States) in

and to a certain parcel of land located in Nantucket, Massachusetts, and part of United States Coast Guard LORAN Station

Nantucket, together with any improvements thereon in their

then current condition.

(2) IDENTIFICATION OF PROPERTY.—The Administrator or

the Commandant, as appropriate, shall identify, describe, and

determine the property to be conveyed under this section. The

Town shall bear all monetary costs associated with any survey

required to describe the property to be conveyed under this section and any easements reserved by the United States under

subsection (b)(1).

(b) TERMS AND CONDITIONS OF CONVEYANCE.—

(1) The conveyance of property under this section shall be

made subject to any terms and conditions the Administrator or

the Commandant, as appropriate, considers necessary, including the reservation of easements and other rights on behalf of

the United States, to ensure that—

446

(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

under this section shall include a condition that the property conveyed, at the option of the Administrator, shall revert to the United

447

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

448

lens or lantern, that is associated with and located at the property conveyed under this section at the time of conveyance. Artifacts associated with, but not located at, the property conveyed

under this section at the time of conveyance, shall remain the

personal property of the United States under the administrative

control of the Commandant. No submerged lands shall be conveyed under this section.

(b) TERMS AND CONDITIONS OF CONVEYANCE.— (1) The conveyance of property under this section shall be

made subject to any terms and conditions the Administrator or

the Commandant, as appropriate, considers necessary, including but not limited to, the reservation of easements and other

rights on behalf of the United States, to ensure that—

(A) the aids to navigation located at property conveyed

under this section shall remain the personal property of the

United States and continue to be operated and maintained

by the United States for as long as needed for navigational

purposes;

(B) there is reserved to the United States the right to

remove, relocate, or replace any aid to navigation located

upon, or install or construct any aid to navigation upon,

property conveyed under this section as may be necessary

for navigational purposes;

(C) the United States shall have the right to enter property conveyed under this section at any time, without notice,

for purposes of operating, maintaining, and inspecting any

aid to navigation, for the purposes of exercising any of the

rights set forth in paragraph (1)(B) of this subsection, and

for the purposes of ingress and egress to any land retained

by the United States; and

(D) the City shall not, without the Commandant’s express written permission, interfere or allow interference, in

any manner, with any aid to navigation, nor hinder activities required

(i) for the inspection, operation, and maintenance

of any aid to navigation; or

(ii) for the exercise of any of the rights set forth in

paragraph (1)(B) of this subsection.

(2) The City shall, at its own cost and expense, maintain

the property conveyed under this section in a proper, substantial, and workmanlike manner.

(3) The City shall ensure that the property conveyed is

available and accessible to the public, on a reasonable basis for

educational, park, recreational, cultural, historic preservation

or similar purposes.

(4) The City shall not be required to maintain any active

aid to navigation associated with the property conveyed under

this section except for private aids to navigation permitted

under 14 U.S.C. § 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

449

to the conveyance of property under this section, as the Administrator or the Commandant considers appropriate to protect the

interests of the United States.

(c) REVERSIONARY INTEREST.—In addition to any term or condition established pursuant to this section, any property conveyed

under this section, at the option of the Administrator, shall revert

to the United States and be placed under the administrative control

of the Administrator, if—

(1) the property conveyed under this section, or any part

thereof, ceases to be maintained in a manner that ensures its

present or future use as a site for an aid to navigation as determined by the Commandant;

(2) the property conveyed under this section, or any part

thereof, ceases to be available and accessible to the public, on

a reasonable basis, for educational, park, recreational, cultural,

historic preservation or similar purposes; or

(3) at least 30 days before the reversion, the Administrator

provides written notice to the grantee that property conveyed

under this section, or any portion thereof, is needed for national

security purposes.

(d) DEFINITIONS.—For purposes of this section:

(1) AID TO NAVIGATION.—The term ‘‘aid to navigation’’

means equipment used for navigation purposes, including but

not limited to, a light, antenna, sound signal, electronic and

radio navigation equipment and signals, cameras, sensors, or

other equipment operated or maintained by the United States.

(2) CITY.—The term ‘‘City’’ includes the successors and assigns of the City of Newburyport, Massachusetts.

SEC. 1116. TRANSFER OF COAST GUARD STATION SCITUATE TO

THE NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION. (a)

AUTHORITY TO TRANSFER.—

(1) IN GENERAL.—The Administrator of the General Services Administration, in consultation with the Commandant,

United States Coast Guard, may transfer without consideration

administrative jurisdiction, custody, and control over the Federal property known as Coast Guard Station Scituate to the National Oceanic and Atmospheric Administration (hereinafter referred to as ‘‘NOAA’’).

(2) IDENTIFICATION OF PROPERTY.—The Administrator, in

consultation with the Commandant, may identify, describe, and

determine the property to be transferred under this section.

(b) TERMS OF TRANSFER.—

(1) The transfer of the property shall be made subject to

any conditions and reservations the Commandant considers

necessary to ensure that—

(A) the transfer of the property to NOAA is contingent

upon the relocation of Coast Guard Station Scituate to a

suitable site;

(B) there is reserved to the Coast Guard the right to remove, relocate, or replace any aid to navigation located

upon, or install any aid to navigation upon, the property

transferred under this section as may be necessary for navigational purposes; and

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(C) the Coast Guard shall have the right to enter the

property transferred under this section at any time, without

notice, for purposes of operating, maintaining, and inspecting any aid to navigation.

(2) The transfer of the property shall be made subject to the

review and acceptance of the property by NOAA.

(c) RELOCATION OF STATION SCITUATE.—The Coast Guard

may—

(1) lease land, including unimproved or vacant land, for a

term not to exceed 20 years, for the purpose of relocating Coast

Guard Station Scituate; and

(2) improve the land leased under this subsection.

SEC. 1117. EXTENSION OF INTERIM AUTHORITY FOR DRY BULK

CARGO RESIDUE DISPOSAL. (a) Section 415(b)(2) of the Coast Guard

Authorization Act of 1998 is amended by striking ‘‘2002’’ and inserting ‘‘2004’’.

(b) The Secretary shall conduct a study of the effectiveness of

the United States 1997 Enforcement Policy for Cargo Residues on

the Great Lakes (‘‘Policy’’) by September 30, 2002.

(c) The Secretary is authorized to promulgate regulations to implement and enforce a program to regulate incidental discharges

from vessels of residues of non-hazardous and non-toxic dry bulk

cargo into the waters of the Great Lakes, which takes into account

the finding in the study required under subsection (b). This program shall be consistent with the Policy.

SEC. 1118. GREAT LAKES PILOTAGE ADVISORY COMMITTEE. Section 9307 of title 46, United States Code, is amended—

(1) by amending subparagraph (A) of subsection (b)(2) to

read as follows:

‘‘(A) The President of each of the 3 Great Lakes pilotage

districts, or the President’s representative;’’;

(2) by amending subparagraph (E) of subsection (b)(2) to

read as follows:

‘‘(E) a member with a background in finance or accounting, who—

‘‘(i) must have been recommended to the Secretary

by a unanimous vote of the other members of the Committee, and

‘‘(ii) may be appointed without regard to requirement in paragraph (1) that each member have 5 years

of practical experience in maritime operations.’’;

(3) in subsection (C)(2) by striking the second sentence;

(4) by adding at the end of subsection (d) the following new

paragraph:

‘‘(3) Any recommendations to the Secretary under subsection (a)(2) must have been approved by at least all but one

of the members then serving on the committee.’’; and

(5) in subsection (f)(1) by striking ‘‘September 30, 2003’’ and

inserting ‘‘September 30, 2005’’.

SEC. 1119. VESSEL ESCORT OPERATIONS AND TOWING ASSISTANCE. (a) IN GENERAL.—Except in the case of a vessel in distress,

only a vessel of the United States (as that term is defined in section

2101 of title 46, United States Code) may perform the following vesVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00454 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.004 pfrm03 PsN: HR1033
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sel escort operations and vessel towing assistance within the navigable waters of the United States:

(1) Operations or assistance that commences or terminates

at a port or place in the United States.

(2) Operations or assistance required by United States law

or regulation.

(3) Operations provided in whole or in part for the purpose

of escorting or assisting a vessel within or through navigation

facilities owned, maintained, or operated by the United States

Government or the approaches to such facilities, other than facilities operated by the St. Lawrence Seaway Development Corporation on the St. Lawrence River portion of the Seaway.

(b) DEFINITIONS.—Unless otherwise defined by a provision of

law or regulation requiring that towing assistance or escort be rendered to vessels transiting United States waters or navigation facilities, for purposes of this section—

(1) the term ‘‘towing assistance’’ means operations by an assisting vessel in direct contact with an assisted vessel (including

hull-to-hull, by towline, including if only pre-tethered, or made

fast to that vessel by 1 or more lines) for purposes of exerting

force on the assisted vessel to control or to assist in controlling

the movement of the assisted vessel; and

(2) the term ‘‘escort operations’’ means accompanying a vessel for the purpose of providing towing or towing assistance to

the vessel.

SEC. 1120. Notwithstanding any other provision of law, the

Commandant of the United States Coast Guard is hereby authorized to utilize $100,000 of the amounts made available for fiscal

year 2001 for environmental compliance and restoration of Coast

Guard facilities to reimburse the owner of the former Coast Guard

lighthouse facility at Cape May, New Jersey, for costs incurred for

clean-up of lead contaminated soil at that facility.

SEC. 1121. Notwithstanding any other provision of law, $2,400,000, to be derived from the Highway Trust Fund, shall be

available for planning, development and construction of rural farmto-market roads in Tulare County, California: Provided, That the

non-federal share of such improvements shall be twenty percent.

SEC. 1122. Notwithstanding any other provision of law, and

subject to the availability of funds appropriated specifically for the

project, the Coast Guard is authorized to transfer funds in an

amount not to exceed $200,000 and project management authority

to the Traverse City Area Public School District for the purposes of

demolition and removal of the structure commonly known as

‘‘Building 402’’ at former Coast Guard property located in Traverse

City, Michigan, and associated site work. No such funds shall be

transferred until the Coast Guard receives a detailed, fixed price estimate from the School District describing the nature and cost of the

work to be performed, and the Coast Guard shall transfer only that

amount of funds it and the School District consider necessary to

complete the project.

SEC. 1123. Notwithstanding any other provision of law, for necessary expenses for Alabama A&M University buses and bus facilities, $500,000, to be derived from the Mass Transit Account of the

Highway Trust Fund and to remain available until expended.

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SEC. 1124. Notwithstanding any other provision of law, prior to

the fiscal year 2002 apportionment of ‘‘Fixed Guideway Modernization’’ funds authorized under section 5309(a)(1)(E) of Title 49,

United States Code, $7,047,502 of funds made available in fiscal

year 2002 by section 5338(b) of 49 United States Code for the ‘‘Fixed

Guideway Modernization’’ program shall be distributed by the Federal Transit Administration to an urbanized area over 200,000 that

did not receive amounts of fixed guideway modernization formula

grants to which such area was lawfully entitled for fiscal years

1999–2001 in view of eligibility determinations made under 49

United States Code Chapter 53 during the six months prior to the

effective date of this act: Provided, That such sums shall not reduce

a grantee’s fiscal year 2002 apportionment level of ‘‘Fixed Guideway

Modernization’’ funds: Provided further, That such sum remain

available until expended.

SEC. 1125. Notwithstanding any other provision of law, Airport

Improvement Program Formula Changes provided in Public Law

106–181 and defined in Section 104 of that Act shall be applied regardless of funding levels made available under Section 48103 of

title 49, United States Code.

SEC. 1126. Item number 473 contained in section 1602 of the

Transportation Equity Act for the 21st Century (112 Stat. 274), relating to Minnesota, is amended by striking ‘‘between I–35W and

24th Avenue to four lanes in Richfield’’ and inserting ‘‘reconstruction project from Penn Avenue to 24th Avenue, including the Penn

Avenue Bridge over I–494’’.

SEC. 1127. The Secretary of Transportation shall not issue final

regulations under section 20153 of title 49, United States Code, before July 1, 2001.

SEC. 1128. Notwithstanding any other provision of law, in addition to amounts made available in this Act or any other Act, the

following sums shall be made available from the Highway Trust

Fund (other than the Mass Transit Account):

$1,700,000 for transportation and community preservation

projects along the Main Street Corridor in Houston, Texas;

$5,000,000 for rehabilitation, repair, and restoration of the

historic Stillwater Lift Bridge between Stillwater, Minnesota

and Houlton, Wisconsin;

$1,000,000 for improvements to McClung Road, Boston

Street, Larson Street and Whirlpool Drive in the City of

LaPorte, Indiana; and

$1,000,000 for design, environmental mitigation, engineering, and construction of, and improvements to, the US 36/

Wadsworth interchange (Broomfield interchange) in Broomfield

County, Colorado:

Provided, That the amounts appropriated in this section shall remain available until expended and shall not be subject to, or computed against, any obligation limitation or contract authority set

forth in this or any other Act.

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CHAPTER 12

GENERAL SERVICES ADMINISTRATION

REAL PROPERTY ACTIVITIES

FEDERAL BUILDINGS FUND

For an additional amount to be deposited in, and to be used for

the purposes of, the Federal Buildings Fund of the General Services

Administration, $2,070,000: Provided, That this amount shall be

available for the purpose of renovating and redeveloping portions of

the historic Federal building located at 30 North Seventh Street in

Terre Haute, Indiana, to accommodate the needs of Federal tenants:

Provided further, That use of these funds is subject to authorization

including the preparation and approval of a prospectus as required

by the Public Buildings Act of 1959, as amended.

DEPARTMENT OF THE TREASURY

UNITED STATES CUSTOMS SERVICE

OPERATIONS, MAINTENANCE AND PROCUREMENT, AIR AND MARINE

INTERDICTION PROGRAMS

For an additional amount of $7,000,000, to remain available

until expended, for necessary expenses associated with procurement

of two aircraft and related equipment expenses associated with aviation standardization and training at the Customs National Aviation

Center in Oklahoma City, Oklahoma: Provided, That none of the

funds provided shall be available for obligation until an expenditure plan is submitted for approval to the Committees on Appropriations.

CHAPTER 13

DEPARTMENT OF VETERANS AFFAIRS

DEPARTMENTAL ADMINISTRATION

CONSTRUCTION, MINOR PROJECTS

For an additional amount for ‘‘Construction, minor projects’’,

$8,840,000, to remain available until expended.

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

COMMUNITY PLANNING AND DEVELOPMENT

EMPOWERMENT ZONES/ENTERPRISE COMMUNITIES

For an additional amount for ‘‘Empowerment zones and enterprise communities’’, $110,000,000, to remain available until expended: Provided, That $185,000,000 shall be available for urban

empowerment zones, as authorized by the Taxpayer Relief Act of

1997, including $12,333,333 for each empowerment zone.

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COMMUNITY DEVELOPMENT FUND

For an additional amount for ‘‘Community development fund’’,

$66,128,000 to remain available until September 30, 2003.

The referenced statement of the managers in the seventh undesignated paragraph under this heading in title II of the Departments

of Veterans Affairs and Housing and Urban Development, and

Independent Agencies Appropriations Act, 2001 (Public Law 106–

377) is deemed to be amended by striking ‘‘West Dallas neighborhoods’’ in reference to improvement efforts by the Pleasant Wood/

Pleasant Grove Community Development Corporation, and inserting

‘‘the Pleasant Grove area’’ in lieu thereof.

The unobligated amount appropriated in the third paragraph

under the heading ‘‘Community development block grants’’ in Chapter 8 of title II of the Emergency Supplemental Act, 2000 (Public

Law 106–246) for a grant to the City of Hamlet, North Carolina for

demolition and removal of buildings and equipment destroyed by

fire shall remain available until September 30, 2002 for a grant for

such purpose to the County of Richmond, North Carolina.

The seventh paragraph under this heading in title II of Public

Law 106–377 is amended by striking ‘‘$292,000,000’’ and inserting

in lieu thereof $358,128,000’’: Provided, That such funds shall be

available for grants for the Economic Development Initiative (EDI)

to finance a variety of targeted economic investments in accordance

with the terms and conditions specified in the statement of managers accompanying this conference report.

DEPARTMENT OF THE TREASURY

COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS

COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS

FUND PROGRAM ACCOUNT

Under this heading in Public Law 106–377, strike ‘‘$8,750,000

may be used for administrative expenses,’’, and insert ‘‘$9,750,000

may be used for administrative expenses, including administration

of the New Markets Tax Credit and Individual Development Accounts,’’.

ENVIRONMENTAL PROTECTION AGENCY

SCIENCE AND TECHNOLOGY

For an additional amount for ‘‘Science and technology’’,

$1,000,000 for continuation of the South Bronx Air Pollution Study

being conducted by New York University.

ENVIRONMENTAL PROGRAMS AND MANAGEMENT

The statement of the managers under this heading in title III

of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 2001

(Public Law 106–377) is deemed to be amended by inserting the

word ‘‘Valley’’ after the words ‘‘San Bernardino’’ in reference to a

project identified as number 104 in such statement of the managers.

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STATE AND TRIBAL ASSISTANCE GRANTS

Grants appropriated under this heading in Public Law 106–74

and Public Law 106–377 for drinking water infrastructure needs in

the New York City watershed shall be awarded under section

1443(d) of the Safe Drinking Water Act, as amended.

The referenced statement of the managers under this heading in

Public Law 106–377 is deemed to be amended by striking all after

the words ‘‘City of Liberty’’ in reference to item number 78, and inserting the words ‘‘Town of Versailles, Indiana for wastewater infrastructure improvements’’.

Under this heading in title III of Public Law 106–377, strike

‘‘$335,740,000’’ and insert ‘‘$356,370,000’’: Provided, That such

funds shall be for making grants for the construction of wastewater

and water treatment facilities and groundwater protection infrastructure in accordance with the terms and conditions specified for

such grants in the statement of managers accompanying Public Law

106–377 and this conference report.

FEDERAL EMERGENCY MANAGEMENT AGENCY

EMERGENCY MANAGEMENT PLANNING AND ASSISTANCE

For an additional amount for ‘‘Emergency management planning and assistance’’, $100,000,000, to remain available through

September 30, 2001, for programs as authorized by section 33 of the

Federal Fire Prevention and Control Act of 1974 (15 U.S.C. 2201 et

seq.), as amended.

CHAPTER 14

GENERAL PROVISIONS—THIS DIVISION

SEC. 1401. H. Con. Res. 234 of the 106th Congress, as adopted

by the House of Representatives on November 18, 1999, shall be considered to have been adopted by the Senate.

SEC. 1402. Section 3003(a)(1) of the Federal Reports Elimination and Sunset Act of 1995 (31 U.S.C. 1113 note) does not apply

to any report required to be submitted under any of the following

provisions of law:

(1) Sections 1105(a), 1106(a) and (b), and 1109(a) of title

31, United States Code, and any other law relating to the budget of the United States Government.

(2) The Balanced Budget and Emergency Deficit Control

Act of 1985 (2 U.S.C. 900 et seq.).

(3) Sections 202(e)(1) and (3) of the Congressional Budget

Act of 1974 (2 U.S.C. 602(e)(1) and (3)).

(4) Section 1014(e) of the Congressional Budget and Impoundment Control Act of 1974 (2 U.S.C. 685(e)).

SEC. 1403. (a) GOVERNMENT-WIDE RESCISSIONS.—There is

hereby rescinded an amount equal to 0.22 percent of the discretionary budget authority provided (or obligation limit imposed) for

fiscal year 2001 in this or any other Act for each department, agency, instrumentality, or entity of the Federal Government, except for

those programs, projects, and activities which are specifically exempted elsewhere in this provision: Provided, That this exact reducVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00459 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.004 pfrm03 PsN: HR1033
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tion percentage shall be applied on a pro rata basis only to each

program, project, and activity subject to the rescission.

(b) RESTRICTIONS.—This reduction shall not be applied to the

amounts appropriated in Title I of Public Law 106–259: Provided,

That this reduction shall not be applied to the amounts appropriated in Division B of Public Law 106–246: Provided further,

That this reduction shall not be applied to the amounts appropriated under the Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act,

2001, as contained in this Act, or in prior Acts.

(c) REPORT.—The Director of the Office of Management and

Budget shall include in the President’s budget submitted for fiscal

year 2002 a report specifying the reductions made to each account

pursuant to this section.

DIVISION B

TITLE I

SEC. 101. ELIGIBILITY OF PRIVATE ORGANIZATIONS UNDER

CHILD AND ADULT CARE FOOD PROGRAM. (a) Section 17(a)(2)(B) of

the Richard B. Russell National School Lunch Act (42 U.S.C.

1766(a)(2)(B)) is amended by striking ‘‘children for which the’’ and

inserting ‘‘children, if—

‘‘(i) during the period beginning on the date of enactment of this clause and ending on September 30,

2001, at least 25 percent of the children served by the

organization meet the income eligibility criteria established under section 9(b) for free or reduced price

meals; or

‘‘(ii) the’’.

(b) EMERGENCY REQUIREMENT.—

(1) IN GENERAL.—The entire amount necessary to carry out

this section shall be available only to the extent that an official

budget request for the entire amount, that includes designation

of the entire amount of the request as an emergency requirement

as defined in the Balanced Budget and Emergency Deficit Control Act of 1985, as amended, is transmitted by the President

to the Congress.

(2) DESIGNATION.—The entire amount necessary to carry

out this section is designated by the Congress as an emergency

requirement pursuant to section 251(b)(2)(A) of such Act.

SEC. 102. SUMMER FOOD PILOT PROJECTS. (a) Section 18 of the

Richard B. Russell National School Lunch Act (42 U.S.C. 1769) is

amended by adding at the end the following:

‘‘(f) SUMMER FOOD PILOT PROJECTS.—

‘‘(1) DEFINITION OF ELIGIBLE STATE.—In this subsection, the

term ‘eligible State’ means a State in which (based on data

available in July 2000)—

‘‘(A) the percentage obtained by dividing—

‘‘(i) the sum of—

‘‘(I) the average daily number of children attending the summer food service program in the

State in July 1999; and

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‘‘(II) the average daily number of children receiving free or reduced price meals under the

school lunch program in the State in July 1999; by

‘‘(ii) the average daily number of children receiving

free or reduced price meals under the school lunch program in the State in March 1999; is less than 50 percent of

‘‘(B) the percentage obtained by dividing—

‘‘(i) the sum of—

‘‘(I) the average daily number of children attending the summer food service program in all

States in July 1999; and

‘‘(II) the average daily number of children receiving free or reduced price meals under the

school lunch program in all States in July 1999;

by

‘‘(ii) the average daily number of children receiving

free or reduced price meals under the school lunch program in all States in March 1999.

‘‘(2) PILOT PROJECTS.—During the period of fiscal years

2001 through 2003, the Secretary shall carry out a summer

food pilot project in each eligible State to increase the number

of children participating in the summer food service program in

the State.

‘‘(3) SUPPORT LEVELS FOR SERVICE INSTITUTIONS.— ‘‘(A) FOOD SERVICE.—Under the pilot project, a service

institution (other than a service institution described in section 13(a)(7)) in an eligible State shall receive the maximum amounts for food service under section 13(b)(1) without regard to the requirement under section 13(b)(1)(A) that

payments shall equal the full cost of food service operations.

‘‘(B) ADMINISTRATIVE COSTS.—Under the pilot project,

a service institution (other than a service institution described in section 13(a)(7)) in an eligible State shall receive

the maximum amounts for administrative costs determined

by the Secretary under section 13(b)(4) without regard to

the requirement under section 13(b)(3) that payments to

service institutions shall equal the full amount of State-approved administrative costs incurred.

‘‘(C) COMPLIANCE.—A service institution that receives

assistance under this subsection shall comply with all provisions of section 13 other than subsections (b)(1)(A) and

(b)(3) of section 13.

‘‘(4) MAINTENANCE OF EFFORT.—Expenditures of funds from

State and local sources for maintenance of a summer food service program shall not be diminished as a result of assistance

from the Secretary received under this subsection.

‘‘(5) EVALUATION OF PILOT PROJECTS.—

‘‘(A) IN GENERAL.—The Secretary, acting through the

Administrator of the Food and Nutrition Service, shall conduct an evaluation of the pilot project.

‘‘(B) CONTENT.—An evaluation under this paragraph

shall describe—

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‘‘(i) any effect on participation by children and

service institutions in the summer food service program

in the eligible State in which the pilot project is carried

out;

‘‘(ii) any effect of the pilot project on the quality of

the meals and supplements served in the eligible State

in which the pilot project is carried out; and

‘‘(iii) any effect of the pilot project on program integrity.

‘‘(6) REPORTS.— ‘‘(A) INTERIM REPORT.—Not later than December 1,

2002, the Secretary shall submit to the Committee on Education and the Workforce of the House of Representatives

and the Committee on Agriculture, Nutrition, and Forestry

of the Senate an interim report that describes the status of,

and any progress made by, each pilot project being carried

out under this subsection as of the date of submission of the

report.

‘‘(B) FINAL REPORT.—Not later than April 30, 2004, the

Secretary shall submit to the Committee on Education and

the Workforce of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate

a final report that includes—

‘‘(i) the evaluations completed by the Secretary

under paragraph (5); and

‘‘(ii) any recommendations of the Secretary concerning the pilot projects.’’.

(b) EMERGENCY REQUIREMENT.— (1) IN GENERAL.—The entire amount necessary to carry out

this section shall be available only to the extent that an official

budget request for the entire amount, that includes designation

of the entire amount of the request as an emergency requirement

as defined in the Balanced Budget and Emergency Deficit Control Act of 1985, as amended, is transmitted by the President

to the Congress.

(2) DESIGNATION.—The entire amount necessary to carry

out this section is designated by the Congress as an emergency

requirement pursuant to section 251(b)(2)(A) of such Act.

SEC. 103. (a) IN GENERAL.—The Secretary of the Interior shall

conduct a feasibility study for a Sacramento River, California, diversion project that is consistent with the Water Forum Agreement

among the members of the Sacramento, California, Water Forum

dated April 24, 2000, and that considers—

(1) consolidation of several of the Natomas Central Mutual

Water Company’s diversions;

(2) upgrading fish screens at the consolidated diversion;

(3) the diversion of 35,000 acre feet of water by the Placer

County Water Agency;

(4) the diversion of 29,000 acre feet of water for delivery to

the Northridge Water District;

(5) the potential to accommodate other diversions of water

from the Sacramento River, subject to additional negotiations

and agreement among Water Forum signatories and potentially

affected parties upstream on the Sacramento River; and

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(6) an inter-tie between the diversions referred to in paragraphs (3), (4), and (5) with the Northridge Water District’s

pipeline that delivers water from the American River.

(b) REQUIRED COMPONENTS.—The feasibility study shall

include—

(1) the development of a range of reasonable options;

(2) an environmental evaluation; and

(3) consultation with Federal and State resource management agencies regarding potential impacts and mitigation

measures.

(c) WATER SUPPLY IMPACT ALTERNATIVES.—The study authorized by this section shall include a range of alternatives, all of

which would investigate options that could reduce to insignificance

any water supply impact on water users in the Sacramento River

watershed, including Central Valley Project contractors, from any

delivery of water out of the Sacramento River as referenced in subsection (a). In evaluating the alternatives, the study shall consider

water supply alternatives that would increase water supply for, or

in, the Sacramento River watershed. The study should be coordinated with the CALFED program and take advantage of information already developed within that program to investigate water

supply increase alternatives. Where the alternatives evaluated are in

addition to or different from the existing CALFED alternatives, such

information should be clearly identified.

(d) HABITAT MANAGEMENT PLANNING GRANTS.—The Secretary

of the Interior, subject to the availability of appropriations, is authorized and directed to provide grants to support local habitat

management planning efforts undertaken as part of the consultation

described in subsection (b)(3) in the form of matching funds up to

$5,000,000.

(e) REPORT.—The Secretary of the Interior shall provide a report to the Committee on Resources of the United States House of

Representatives and to the Committee on Energy and Natural Resources of the United States Senate within twenty-four months from

the date of enactment of this Act on the results of the study identified in subsection (a).

(f) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to

be appropriated to the Secretary of the Interior to carry out this section $10,000,000, which may remain available until expended, of

which—

(1) $5,000,000 shall be for the feasibility study under subsection (a); and

(2) $5,000,000 shall be for the habitat management planning grants under subsection (d).

(g) LIMITATION ON CONSTRUCTION.—This section does not and

shall not be interpreted to authorize construction of any facilities.

SEC. 104. TEN- AND FIFTEEN-MILE BAYOUS, ARKANSAS. The

project for flood control, Saint Francis River Basin, Missouri and

Arkansas, authorized by section 204 of the Flood Control Act of

1950 (64 Stat. 172), is modified to expand the boundaries of the

project to include Ten- and Fifteen-Mile Bayous near West Memphis, Arkansas. Notwithstanding section 103(f) of the Water Resources Development Act of 1986 (100 Stat. 4086), the flood control

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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 costshared recreation facilities as usable segments are completed.

SEC. 106. TRUCKEE WATERSHED RECLAMATION PROJECT. (a)

AUTHORIZATION.—The Secretary of the Interior, in cooperation with

Washoe County, Nevada, may participate in the design, planning,

and construction of the Truckee watershed reclamation project, consisting of the North Valley reuse project and the Spanish Springs

Valley septic conversion project, to reclaim and reuse wastewater

(including degraded groundwater) within and without the service

area of Washoe County, Nevada.

(b) COST SHARE.—The Federal share of the cost of the project

described in subsection (a) shall not exceed 25 percent of the total

cost of the project.

(c) LIMITATION.—Funds provided by the Secretary shall not be

used for the operation or maintenance of the project described in

subsection (a).

(d) RECLAMATION WASTEWATER AND GROUNDWATER STUDY AND

FACILITIES ACT.— (1) DESIGN, PLANNING, AND CONSTRUCTION.—Design, planning, and construction of the project described in subsection (a)

shall be in accordance with, and subject to the limitations contained in, the Reclamation Wastewater and Groundwater Study

and Facilities Act (43 U.S.C. 390h et seq.).

(2) FUNDING.—Funds made available under section 1631 of

the Reclamation Wastewater and Groundwater Study and Facilities Act (43 U.S.C. 390h–13) may be used to pay the Federal

share of the cost of the project.

SEC. 107. The project for navigation, Tampa Harbor, Florida,

authorized by section 4 of the Rivers and Harbors Act of September

22, 1922 (42 Stat. 1042), is modified to authorize the Secretary of

the Army to deepen and widen the Alafia Channel in accordance

with the plans described in the Draft Feasibility Report, Alafia

River, Tampa Harbor, Florida, dated May 2000, at a total cost of

$61,592,000, with an estimated Federal cost of $39,621,000 and an

estimated non-Federal cost of $21,971,000.

SEC. 108. ENVIRONMENTAL INFRASTRUCTURE. (a) TECHNICAL,

PLANNING, AND DESIGN ASSISTANCE.—Section 219(c) of the Water

Resources Development Act of 1992 (106 Stat. 4835) is amended by

adding at the end the following:

‘‘(19) MARANA, ARIZONA.—Wastewater treatment and distribution infrastructure, Marana, Arizona.

‘‘(20) EASTERN ARKANSAS ENTERPRISE COMMUNITY, ARKANSAS.—Water-related infrastructure, Eastern Arkansas Enterprise Community, Cross, Lee, Monroe, and St. Francis Counties, Arkansas.

‘‘(21) CHINO HILLS, CALIFORNIA.—Storm water and sewage

collection infrastructure, Chino Hills, California.

461

‘‘(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, CALI- FORNIA.—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 PAR- ISHES, LOUISIANA.—Water and wastewater infrastructure, St.

Charles, St. Bernard, and Plaquemines Parishes, Louisiana.

‘‘(34) ST. JOHN THE BAPTIST AND ST. JAMES PARISHES, LOU- ISIANA.—Water and sewer improvements, St. John the Baptist

and St. James Parishes, Louisiana.

‘‘(35) UNION COUNTY, NORTH CAROLINA.—Water infrastructure, Union County, North Carolina.

‘‘(36) HOOD RIVER, OREGON.—Water transmission infrastructure, Hood River, Oregon.

‘‘(37) MEDFORD, OREGON.—Sewer collection infrastructure,

Medford, Oregon.

‘‘(38) PORTLAND, OREGON.—Water infrastructure and resource protection, Portland, Oregon.

‘‘(39) COUDERSPORT, PENNSYLVANIA.—Sewer system extensions and improvements, Coudersport, Pennsylvania.

‘‘(40) PARK CITY, UTAH.—Water supply infrastructure, Park

City, Utah.

(b) AUTHORIZATION OF APPROPRIATIONS FOR TECHNICAL, PLANNING, AND DESIGN ASSISTANCE.—Section 219(d) of the Water Resources Development Act of 1992 (106 Stat. 4836) is amended by

striking ‘‘$5,000,000’’ and inserting ‘‘$30,000,000’’.

(c) MODIFICATION OF AUTHORIZATIONS FOR ENVIRONMENTAL

PROJECTS.—Section 219 of the Water Resources Development Act of

1992 (106 Stat. 4835; 106 Stat. 3757; 113 Stat. 334) is amended—

(1) in subsection (e)(6) by striking ‘‘$20,000,000’’ and inserting ‘‘$30,000,000’’;

(2) in subsection (f)(4) by striking ‘‘$15,000,000’’ and inserting ‘‘$35,000,000’’;

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(3) in subsection (f)(21) by striking ‘‘$10,000,000’’ and inserting ‘‘$20,000,000’’;

(4) in subsection (f)(25) by striking ‘‘$5,000,000’’ and inserting ‘‘$15,000,000’’;

(5) in subsection (f)(30) by striking ‘‘$10,000,000’’ and inserting ‘‘$20,000,000’’;

(6) in subsection (f)(43) by striking ‘‘$15,000,000’’ and inserting ‘‘$35,000,000’’.

(d) ADDITIONAL ASSISTANCE FOR CRITICAL RESOURCE

PROJECTS.—Section 219(f) of the Water Resources Development Act

of 1992 (106 Stat. 4835; 113 Stat. 335) is amended by adding at

the end the following:

‘‘(45) WASHINGTON, D.C., AND MARYLAND.—$15,000,000 for

the project described in subsection (c)(1), modified to include

measures to eliminate or control combined sewer overflows in

the Anacostia River watershed.

‘‘(46) DUCK RIVER, CULLMAN, ALABAMA.—$5,000,000 for

water supply infrastructure, Duck River, Cullman, Alabama.

‘‘(47) UNION COUNTY, ARKANSAS.—$52,000,000 for water

supply infrastructure, including facilities for withdrawal, treatment, and distribution, Union County, Arkansas.

‘‘(48) CAMBRIA, CALIFORNIA.—$10,300,000 for desalination

infrastructure, Cambria, California.

‘‘(49) LOS ANGELES HARBOR/TERMINAL ISLAND, CALIFORNIA.—$6,500,000 for wastewater recycling infrastructure,

Los Angeles Harbor/Terminal Island, California.

‘‘(50) NORTH VALLEY REGION, LANCASTER, CALIFORNIA.—

$14,500,000 for water infrastructure, North Valley Region, Lancaster, California.

‘‘(51) SAN DIEGO COUNTY, CALIFORNIA.—$10,000,000 for

water-related infrastructure, San Diego County, California.

‘‘(52) SOUTH PERRIS, CALIFORNIA.—$25,000,000 for water

supply desalination infrastructure, South Perris, California.

‘‘(53) AURORA, ILLINOIS.—$8,000,000 for wastewater infrastructure to reduce or eliminate combined sewer overflows, Aurora, Illinois.

‘‘(54) COOK COUNTY, ILLINOIS.—$35,000,000 for water-related infrastructure and resource protection and development,

Cook County, Illinois.

‘‘(55) MADISON AND ST. CLAIR COUNTIES, ILLINOIS.—

$10,000,000 for water and wastewater assistance, Madison and

St. Clair Counties, Illinois.

‘‘(56) IBERIA PARISH, LOUISIANA.—$5,000,000 for water and

wastewater infrastructure, Iberia Parish, Louisiana.

‘‘(57) KENNER, LOUISIANA.—$5,000,000 for wastewater infrastructure, Kenner, Louisiana.

‘‘(58) BENTON HARBOR, MICHIGAN.—$1,500,000 for water related infrastructure, City of Benton Harbor, Michigan.

‘‘(59) GENESEE COUNTY, MICHIGAN.—$6,700,000 for wastewater infrastructure assistance to reduce or eliminate sewer

overflows, Genessee County, Michigan.

‘‘(60) NEGAUNEE, MICHIGAN.—$10,000,000 for wastewater

infrastructure assistance, City of Negaunee, Michigan.

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‘‘(61) GARRISON AND KATHIO TOWNSHIP, MINNESOTA.—

$11,000,000 for a wastewater infrastructure project for the city

of Garrison and Kathio Township, Minnesota.

‘‘(62) NEWTON, NEW JERSEY.—$7,000,000 for water filtration infrastructure, Newton, New Jersey.

‘‘(63) LIVERPOOL, NEW YORK.—$2,000,000 for water infrastructure, including a pump station, Liverpool, New York.

‘‘(64) STANLY COUNTY, NORTH CAROLINA.—$8,900,000 for

wastewater infrastructure, Stanly County, North Carolina.

‘‘(65) YUKON, OKLAHOMA.—$5,500,000 for water-related infrastructure, including wells, booster stations, storage tanks,

and transmission lines, Yukon, Oklahoma.

‘‘(66) ALLEGHENY COUNTY, PENNSYLVANIA.—$20,000,000 for

water-related environmental infrastructure, Allegheny County,

Pennsylvania.

‘‘(67) MOUNT JOY TOWNSHIP AND CONEWAGO TOWNSHIP,

PENNSYLVANIA.—$8,300,000 for water and wastewater infrastructure, Mount Joy Township and Conewago Township,

Pennsylvania.

‘‘(68) PHOENIXVILLE BOROUGH, CHESTER COUNTY, PENNSYLVANIA.—$2,400,000 for water and sewer infrastructure,

Phoenixville Borough, Chester County, Pennsylvania.

‘‘(69) TITUSVILLE, PENNSYLVANIA.—$7,300,000 for storm

water separation and treatment plant upgrades, Titusville,

Pennsylvania.

‘‘(70) WASHINGTON, GREENE, WESTMORELAND, AND FAYETTE

COUNTIES, PENNSYLVANIA.—$8,000,000 for water and wastewater infrastructure, Washington, Greene, Westmoreland, and

Fayette Counties, Pennsylvania.’’.

SEC. 109. FLORIDA KEYS WATER QUALITY IMPROVEMENTS. (a)

IN GENERAL.—In coordination with the Florida Keys Aqueduct Authority, appropriate agencies of municipalities of Monroe County,

Florida, and other appropriate public agencies of the State of Florida or Monroe County, the Secretary of the Army may provide technical and financial assistance to carry out projects for the planning,

design, and construction of treatment works to improve water quality in the Florida Keys National Marine Sanctuary.

(b) CRITERIA FOR PROJECTS.—Before entering into a cooperation

agreement to provide assistance with respect to a project under this

section, the Secretary shall ensure that—

(1) the non-Federal sponsor has completed adequate planning and design activities, as applicable;

(2) the non-Federal sponsor has completed a financial plan

identifying sources of non-Federal funding for the project;

(3) the project complies with—

(A) applicable growth management ordinances of Monroe County, Florida;

(B) applicable agreements between Monroe County,

Florida, and the State of Florida to manage growth in

Monroe County, Florida; and

(C) applicable water quality standards; and

(4) the project is consistent with the master wastewater and

stormwater plans for Monroe County, Florida.

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(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 nonFederal interest credit toward cash contributions

required—

(i) before and during the construction of the

project, for the costs of planning, engineering, and design, and for the construction management work that

is performed by the non-Federal interest and that the

Secretary determines is necessary to implement the

project; and

(ii) during the construction of the project, for the

construction that the non-Federal interest carries out

on behalf of the Secretary and that the Secretary determines is necessary to carry out the project.

(B) TREATMENT OF CREDIT BETWEEN PROJECTS.—Any

credit provided under this paragraph may be carried over

between authorized projects.

(f) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to

be appropriated to carry out this section $100,000,000. Such sums

shall remain available until expended.

SEC. 110. SAN GABRIEL BASIN, CALIFORNIA. (a) SAN GABRIEL

BASIN RESTORATION.—

(1) ESTABLISHMENT OF FUND.—There shall be established

within the Treasury of the United States an interest bearing account to be known as the San Gabriel Basin Restoration Fund

(in this section referred to as the ‘‘Restoration Fund’’).

(2) ADMINISTRATION OF FUND.—The Restoration Fund shall

be administered by the Secretary of the Army, in cooperation

with the San Gabriel Basin Water Quality Authority or its successor agency.

(3) PURPOSES OF FUND.—

(A) IN GENERAL.—Subject to subparagraph (B), the

amounts in the Restoration Fund, including interest accrued, shall be utilized by the Secretary—

(i) to design and construct water quality projects to

be administered by the San Gabriel Basin Water Quality Authority and the Central Basin Water Quality

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Project to be administered by the Central Basin Municipal Water District; and

(ii) to operate and maintain any project constructed under this section for such period as the Secretary determines, but not to exceed 10 years, following

the initial date of operation of the project.

(B) COST-SHARING LIMITATION.— (i) IN GENERAL.—The Secretary may not obligate

any funds appropriated to the Restoration Fund in a

fiscal year until the Secretary has deposited in the

Fund an amount provided by non-Federal interests sufficient to ensure that at least 35 percent of any funds

obligated by the Secretary are from funds provided to

the Secretary by the non-Federal interests.

(ii) NON-FEDERAL RESPONSIBILITY.—The San Gabriel Basin Water Quality Authority shall be responsible for providing the non-Federal amount required by

clause (i). The State of California, local government

agencies, and private entities may provide all or any

portion of such amount.

(b) COMPLIANCE WITH APPLICABLE LAW.—In carrying out the

activities described in this section, the Secretary shall comply with

any applicable Federal and State laws.

(c) RELATIONSHIP TO OTHER ACTIVITIES.—Nothing in this section shall be construed to affect other Federal or State authorities

that are being used or may be used to facilitate the cleanup and

protection of the San Gabriel and Central groundwater basins. In

carrying out the activities described in this section, the Secretary

shall integrate such activities with ongoing Federal and State

projects and activities. None of the funds made available for such

activities pursuant to this section shall be counted against any Federal authorization ceiling established for any previously authorized

Federal projects or activities.

(d) AUTHORIZATION OF APPROPRIATIONS.—

(1) IN GENERAL.—There is authorized to be appropriated to

the Restoration Fund established under subsection (a)

$85,000,000. Such funds shall remain available until expended.

(2) SET-ASIDE.—Of the amounts appropriated under paragraph (1), no more than $10,000,000 shall be available to carry

out the Central Basin Water Quality Project.

(e) ADJUSTMENT.—Of the $25,000,000 made available for San

Gabriel Basin Groundwater Restoration, California, under the

heading ‘‘Construction, General’’ in title I of the Energy and Water

Development Appropriations Act, 2001—

(1) $2,000,000 shall be available only for studies and other

investigative activities and planning and design of projects determined by the Secretary to offer a long-term solution to the

problem of groundwater contamination caused by perchlorates

at sites located in the city of Santa Clarita, California; and

(2) $23,000,000 shall be deposited in the Restoration Fund,

of which $4,000,000 shall be used for remediation in the Central Basin, California.

SEC. 111. PERCHLORATE. (a) IN GENERAL.—The Secretary of the

Army, in cooperation with Federal, State, and local government

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agencies, may participate in studies and other investigative activities and in the planning and design of projects determined by the

Secretary to offer a long-term solution to the problem of groundwater contamination caused by perchlorates.

(b) INVESTIGATIONS AND PROJECTS.—

(1) BOSQUE AND LEON RIVERS.—The Secretary, in coordination with other Federal agencies and the Brazos River Authority, shall participate under subsection (a) in investigations and

projects in the Bosque and Leon River watersheds in Texas to

assess the impact of the perchlorate associated with the former

Naval ‘‘Weapons Industrial Reserve Plant’’ at McGregor, Texas.

(2) CADDO LAKE.—The Secretary, in coordination with other

Federal agencies and the Northeast Texas Municipal Water District, shall participate under subsection (a) in investigations

and projects relating to perchlorate contamination in Caddo

Lake, Texas.

(3) EASTERN SANTA CLARA BASIN.—The Secretary, in coordination with other Federal, State, and local government agencies, shall participate under subsection (a) in investigations and

projects related to sites that are sources of perchlorates and that

are located in the city of Santa Clarita, California.

(c) AUTHORIZATION OF APPROPRIATIONS.—For the purposes of

carrying out this section, there is authorized to be appropriated to

the Secretary $25,000,000, of which not to exceed $8,000,000 shall

be available to carry out subsection (b)(1), not to exceed $3,000,000

shall be available to carry out subsection (b)(2), and not to exceed

$7,000,000 shall be available to carry out subsection (b)(3).

SEC. 112. WET WEATHER WATER QUALITY. (a) COMBINED

SEWER OVERFLOWS.—Section 402 of the Federal Water Pollution

Control Act (33 U.S.C. 1342) is amended by adding at the end the

following:

‘‘(q) COMBINED SEWER OVERFLOWS.—

‘‘(1) REQUIREMENT FOR PERMITS, ORDERS, AND DECREES.—

Each permit, order, or decree issued pursuant to this Act after

the date of enactment of this subsection for a discharge from a

municipal combined storm and sanitary sewer shall conform to

the Combined Sewer Overflow Control Policy signed by the Administrator on April 11, 1994 (in this subsection referred to as

the ‘CSO control policy’).

‘‘(2) WATER QUALITY AND DESIGNATED USE REVIEW GUIDANCE.—Not later than July 31, 2001, and after providing notice

and opportunity for public comment, the Administrator shall

issue guidance to facilitate the conduct of water quality and

designated use reviews for municipal combined sewer overflow

receiving waters.

‘‘(3) REPORT.—Not later than September 1, 2001, the Administrator shall transmit to Congress a report on the progress

made by the Environmental Protection Agency, States, and municipalities in implementing and enforcing the CSO control policy.’’.

(b) WET WEATHER PILOT PROGRAM.—Title I of the Federal

Water Pollution Control Act (33 U.S.C. 1251 et seq.) is amended by

adding at the end the following:

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

‘‘(a) IN GENERAL.—The Administrator, in coordination with the

States, may provide technical assistance and grants for treatment

works to carry out pilot projects relating to the following areas of

wet weather discharge control:

‘‘(1) WATERSHED MANAGEMENT OF WET WEATHER DISCHARGES.—The management of municipal combined sewer overflows, sanitary sewer overflows, and stormwater discharges, on

an integrated watershed or subwatershed basis for the purpose

of demonstrating the effectiveness of a unified wet weather approach.

‘‘(2) STORMWATER BEST MANAGEMENT PRACTICES.—The control of pollutants from municipal separate storm sewer systems

for the purpose of demonstrating and determining controls that

are cost-effective and that use innovative technologies in reducing such pollutants from stormwater discharges.

‘‘(b) ADMINISTRATION.—The Administrator, in coordination with

the States, shall provide municipalities participating in a pilot

project under this section the ability to engage in innovative practices, including the ability to unify separate wet weather control efforts under a single permit.

‘‘(c) FUNDING.—

‘‘(1) IN GENERAL.—There is authorized to be appropriated to

carry out this section $10,000,000 for fiscal year 2002,

$15,000,000 for fiscal year 2003, and $20,000,000 for fiscal year

2004. Such funds shall remain available until expended.

‘‘(2) STORMWATER.—The Administrator shall make available not less than 20 percent of amounts appropriated for a fiscal year pursuant to this subsection to carry out the purposes

of subsection (a)(2).

‘‘(3) ADMINISTRATIVE EXPENSES.—The Administrator may

retain not to exceed 4 percent of any amounts appropriated for

a fiscal year pursuant to this subsection for the reasonable and

necessary costs of administering this section.

‘‘(d) REPORT TO CONGRESS.—Not later than 5 years after the

date of enactment of this section, the Administrator shall transmit

to Congress a report on the results of the pilot projects conducted

under this section and their possible application nationwide.’’.

(c) SEWER OVERFLOW CONTROL GRANTS.—Title II of the Federal

Water Pollution Control Act (33 U.S.C. 1342 et seq.) is amended by

adding at the end the following:

‘‘SEC. 221. SEWER OVERFLOW CONTROL GRANTS.

‘‘(a) IN GENERAL.—In any fiscal year in which the Administrator has available for obligation at least $1,350,000,000 for the

purposes of section 601—

‘‘(1) the Administrator may make grants to States for the

purpose of providing grants to a municipality or municipal entity for planning, design, and construction of treatment works

to intercept, transport, control, or treat municipal combined

sewer overflows and sanitary sewer overflows; and

‘‘(2) subject to subsection (g), the Administrator may make

a direct grant to a municipality or municipal entity for the purposes described in paragraph (1).

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‘‘(b) PRIORITIZATION.—In selecting from among municipalities

applying for grants under subsection (a), a State or the Administrator shall give priority to an applicant that—

‘‘(1) is a municipality that is a financially distressed community under subsection (c);

‘‘(2) has implemented or is complying with an implementation schedule for the 9 minimum controls specified in the CSO

control policy referred to in section 402(q)(1) and has begun implementing a long-term municipal combined sewer overflow

control plan or a separate sanitary sewer overflow control plan;

or

‘‘(3) is requesting a grant for a project that is on a State’s

intended use plan pursuant to section 606(c); or

‘‘(4) is an Alaska Native Village.

‘‘(c) FINANCIALLY DISTRESSED COMMUNITY.—

‘‘(1) DEFINITION.—In subsection (b), the term ‘financially

distressed community’ means a community that meets affordability criteria established by the State in which the community

is located, if such criteria are developed after public review and

comment.

‘‘(2) CONSIDERATION OF IMPACT ON WATER AND SEWER

RATES.—In determining if a community is a distressed community for the purposes of subsection (b), the State shall consider,

among other factors, the extent to which the rate of growth of

a community’s tax base has been historically slow such that implementing a plan described in subsection (b)(2) would result in

a significant increase in any water or sewer rate charged by the

community’s publicly owned wastewater treatment facility.

‘‘(3) INFORMATION TO ASSIST STATES.—The Administrator

may publish information to assist States in establishing affordability criteria under paragraph (1).

‘‘(d) COST SHARING.—The Federal share of the cost of activities

carried out using amounts from a grant made under subsection (a)

shall be not less than 55 percent of the cost. The non-Federal share

of the cost may include, in any amount, public and private funds

and in-kind services, and may include, notwithstanding section

603(h), financial assistance, including loans, from a State water

pollution control revolving fund.

‘‘(e) ADMINISTRATIVE REPORTING REQUIREMENTS.—If a project

receives grant assistance under subsection (a) and loan assistance

from a State water pollution control revolving fund and the loan assistance is for 15 percent or more of the cost of the project, the

project may be administered in accordance with State water pollution control revolving fund administrative reporting requirements

for the purposes of streamlining such requirements.

‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There is authorized

to be appropriated to carry out this section $750,000,000 for each

of fiscal years 2002 and 2003. Such sums shall remain available

until expended.

‘‘(g) ALLOCATION OF FUNDS.—

‘‘(1) FISCAL YEAR 2002.—Subject to subsection (h), the Administrator shall use the amounts appropriated to carry out

this section for fiscal year 2002 for making grants to municiVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00472 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.004 pfrm03 PsN: HR1033
469

palities 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.

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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

471

agreement for the project if the Secretary determines that the work

is integral to the project.

SEC. 119. Within the funds appropriated to the National Park

Service under the heading ‘‘Operation of the National Park System’’

in Public Law 106–291, the Secretary of the Interior shall provide

a grant of $75,000 to the City of Ocean Beach, New York, for repair

of facilities at the Ocean Beach Pavilion at Fire Island National

Seashore.

SEC. 120. The National Park Service is directed to work with

Fort Sumter Tours, Inc., the concessionaire currently providing services at Fort Sumter National Monument in South Carolina, on an

amicable solution of the current legal dispute between the two parties. The Director of the Service is directed to extend immediately

the current contract through March 15, 2001, to facilitate further

negotiations and for 180 days if final settlement of all disputes is

agreed to by both parties.

SEC. 121. Title VIII—Land Conservation, Preservation and Infrastructure Improvement of Public Law 106–291 is amended as follows: after the first dollar amount insert: ‘‘, to be derived from the

Land and Water Conservation Fund’’.

SEC. 122. GAS TO LIQUIDS. Section 301(2) of the Energy Policy

Act of 1992 (Public Law 102–486; 42 U.S.C. 13211(2)) is amended

by inserting ‘‘, including liquid fuels domestically produced from

natural gas’’ after ‘‘natural gas’’.

SEC. 123. (a) The provisions of H.R. 4904 as passed in the

House of Representatives on September 26, 2000 are hereby enacted

into law.

SEC. 124. APPALACHIAN NATIONAL SCENIC TRAIL. (a) ACQUISI- TIONS.—(1) IN GENERAL.—The Secretary of the Interior shall—

(A) negotiate agreements with landowners setting terms

and conditions for the acquisition of parcels of land and interests in land totalling approximately 580 acres at

Saddleback Mountain near Rangeley, Maine, for the benefit

of the Appalachian National Scenic Trail;

(B) complete the pending environmental compliance

process for the acquisitions; and

(C) acquire the parcels of land and interests in land for

consideration in the amount of $4,000,000 plus closing

costs customarily paid by the United States.

(2) ACCEPTANCE OF DONATIONS.—The Secretary may accept

as donations parcels of land and interests in land at

Saddleback Mountain, in addition to those acquired by purchase under paragraph (1), for the benefit of the Appalachian

National Scenic Trail.

(b) CONVEYANCE TO THE STATE.—The Secretary shall convey to

the State of Maine a portion of the land and interests in land acquired under subsection (a) without consideration, subject to such

terms and conditions as the Secretary and the State of Maine agree

are necessary to ensure the protection of the Appalachian National

Scenic Trail.

SEC. 125. The provisions of S. 2273, as passed in the United

States Senate on October 5, 2000 and engrossed, are hereby enacted

into law.

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SEC. 126. Section 116(a)(1)(A) of the Illinois and Michigan

Canal National Heritage Corridor Act of 1984 (98 Stat. 1467) is

amended by striking ‘‘$250,000’’ and inserting ‘‘$1,000,000’’.

SEC. 127. The provisions of S. 2885, as passed in the United

States Senate on October 5, 2000 and engrossed, are hereby enacted

into law.

SEC. 128. None of the funds provided in this or any other Act

may be used prior to July 31, 2001 to promulgate or enforce a final

rule to reduce during the 2000–2001 or 2001–2002 winter seasons

the use of snowmobiles below current use patterns at a unit in the

National Park System: Provided, That nothing in this section shall

be interpreted as amending any requirement of the Clean Air Act:

Provided further, That nothing in this section shall preclude the

Secretary from taking emergency actions related to snowmobile use

in any National Park based on authorities which existed to permit

such emergency actions as of the date of enactment of this Act.

SEC. 129. The Secretary of the Interior shall extend until March

31, 2001 the ‘‘Extension of Standstill Agreement,’’ entered into on

November 22, 1999 by the United States of America and the holders

of interests in seven campsite leases in Biscayne Bay, Miami-Dade

County, Florida collectively known as ‘‘Stiltsville’’.

SEC. 130. The Secretary of the Interior is authorized to make a grant of $1,300,000 to the State of Minnesota or its political subdivision from funds available to the National Park Service under

the heading ‘‘Land Acquisition and State Assistance’’ in Public Law

106–291 to cover the cost of acquisition of land in Lower Phalen

Creek near St. Paul, Minnesota in the Mississippi National River

and Recreation Area.

SEC. 131. Notwithstanding any provision of law or regulation,

funds appropriated in Public Law 106–291 for a cooperative agreement for management of George Washington’s Boyhood Home, Ferry

Farm, shall be transferred to the George Washington’s Fredericksburg Foundation, Inc. (formerly known as Kenmore Association,

Inc.) immediately upon signing of the cooperative agreement.

SEC. 132. During the period beginning on the date of the enactment of this Act and ending on June 1, 2001, funds made available

to the Secretary of the Interior may not be used to pay salaries or

expenses related to the issuance of a request for proposal related to

a light rail system to service Grand Canyon National Park.

SEC. 133. None of the funds in this or any other Act may be

used by the Secretary of the Interior to remove the five foot tall

white cross located within the boundary of the Mojave National Preserve in southern California first erected in 1934 by the Veterans of

Foreign Wars along Cima Road approximately 11 miles south of

Interstate 15.

SEC. 134. Section 6(g) of the Chesapeake and Ohio Canal Development Act (16 U.S.C. 410y–4(g)) is amended by striking ‘‘thirty’’

and inserting ‘‘40’’.

SEC. 135. Funds provided in Public Law 106–291 for federal

land acquisition by the National Park Service in Fiscal Year 2001

for Brandywine Battlefield, Ice Age National Scenic Trail, Mississippi National River and Recreation Area, Shenandoah National

Heritage Area, Fallen Timbers Battlefield and Fort Miamis National Historic Site may be used for a grant to a state, local governVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00476 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.004 pfrm03 PsN: HR1033
473

ment, or to a land management entity for the acquisition of lands

without regard to any restriction on the use of federal land acquisition funds provided through the Land and Water Conservation Act

of 1965.

SEC. 136. Notwithstanding any other provision of law, in accordance with Title IV—Wildland Fire Emergency Appropriations,

Public Law 106–291, from the $35,000,000 provided for community

and private land fire assistance, the Secretary of Agriculture, may

use up to $9,000,000 for advance, direct lump sum payments for assistance to eligible individuals, businesses, or other entities, to accomplish the purposes of providing assistance to non-federal entities

most affected by fire. To expedite such financial assistance being

provided to eligible recipients, the lump sum payments shall not be

subject to CFR Title 7 § 3015; Title 7 § 3019; Title 7 § 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

474

tide, lying and being situated in Harrison County, Mississippi;

‘‘(B) an easement over the approximately 150-acre parcel depicted as the ‘Boddie Family Tract’ on the Cat Island

Map for the purpose of implementing an agreement with

the owners of the parcel concerning the development and

use of the parcel; and

‘‘(C)(i) land and interests in land on Cat Island outside

the 2,000-acre area depicted on the Cat Island Map; and

‘‘(ii) submerged land that lies within 1 mile seaward of

Cat Island (referred to in this title as the ‘buffer zone’), except that submerged land owned by the State of Mississippi

(or a subdivision of the State) may be acquired only by donation.

‘‘(2) ADMINISTRATION.— ‘‘(A) IN GENERAL.—Land and interests in land acquired

under this subsection shall be administered by the Secretary, acting through the Director of the National Park

Service.

‘‘(B) BUFFER ZONE.—Nothing in this title or any other

provision of law shall require the State of Mississippi to

convey to the Secretary any right, title, or interest in or to

the buffer zone as a condition for the establishment of the

buffer zone.

‘‘(3) MODIFICATION OF BOUNDARY.—The boundary of the

seashore shall be modified to reflect the acquisition of land

under this subsection only after completion of the acquisition.’’.

(c) REGULATION OF FISHING.—Section 3 of Public Law 91–660

(16 U.S.C. 459h–2) is amended—

(1) by inserting ‘‘(a) IN GENERAL.—’’ before ‘‘The Secretary’’;

and

(2) by adding at the end the following:

‘‘(b) NO AUTHORITY TO REGULATE MARITIME ACTIVITIES.— Nothing in this title or any other provision of law shall affect any

right of the State of Mississippi, or give the Secretary any authority,

to regulate maritime activities, including nonseashore fishing activities (including shrimping), in any area that, on the date of enactment of this subsection, is outside the designated boundary of the

seashore (including the buffer zone).’’.

(d) AUTHORIZATION OF MANAGEMENT AGREEMENTS.—Section 5

of Public Law 91–660 (16 U.S.C. 459h–4) is amended—

(1) by inserting ‘‘(a) IN GENERAL.—’’ before ‘‘Except’’; and

(2) by adding at the end the following:

‘‘(b) AGREEMENTS.—

‘‘(1) IN GENERAL.—The Secretary may enter into

agreements—

‘‘(A) with the State of Mississippi for the purposes of

managing resources and providing law enforcement assistance, subject to authorization by State law, and emergency

services on or within any land on Cat Island and any

water and submerged land within the buffer zone; and

‘‘(B) with the owners of the approximately 150-acre parcel depicted as the ‘Boddie Family Tract’ on the Cat Island

Map concerning the development and use of the land.

475

‘‘(2) NO AUTHORITY TO ENFORCE CERTAIN REGULATIONS.— Nothing in this subsection authorizes the Secretary to enforce

Federal regulations outside the land area within the designated

boundary of the seashore.’’.

(e) AUTHORIZATION OF APPROPRIATIONS.—Section 11 of Public

Law 91–660 (16 U.S.C. 459h–10) is amended—

(1) by inserting ‘‘(a) IN GENERAL.—’’ before ‘‘There’’; and

(2) by adding at the end the following:

‘‘(b) AUTHORIZATION FOR ACQUISITION OF LAND.—In addition to

the funds authorized by subsection (a), there are authorized to be

appropriated such sums as are necessary to acquire land and submerged land on and adjacent to Cat Island, Mississippi.’’.

SEC. 138. PERCENTAGE LIMITATIONS ON FEDERAL THRIFT SAV- INGS 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 beginning in fiscal year:

The maximum

percentage

allowable is:

2001 .................................................................................................................. 11

2002 .................................................................................................................. 12

2003 .................................................................................................................. 13

2004 .................................................................................................................. 14

2005 .................................................................................................................. 15

2006 or thereafter ............................................................................................ 100.’’.

(2) JUSTICES AND JUDGES.—Paragraph (2) of section

8440a(b) of title 5, United States Code, is amended to read as

follows:

‘‘(2) The amount contributed by a justice or judge for any pay

period shall not exceed the maximum percentage of such justice’s or

judge’s basic pay for such pay period allowable under section

8440f.’’.

(3) BANKRUPTCY JUDGES AND MAGISTRATES.—Paragraph

(2) of section 8440b(b) of title 5, United States Code, is amended by striking ‘‘5 percent’’ and all that follows through ‘‘period.’’

and inserting ‘‘the maximum percentage of such bankruptcy

judge’s or magistrate’s basic pay for such pay period allowable

under section 8440f.’’.

(4) COURT OF FEDERAL CLAIMS JUDGES.—Paragraph (2) of

section 8440c(b) of title 5, United States Code, is amended by

striking ‘‘5 percent’’ and all that follows through ‘‘period.’’ and

inserting ‘‘the maximum percentage of such judge’s basic pay

for such pay period allowable under section 8440f.’’.

(5) JUDGES OF THE UNITED STATES COURT OF APPEALS FOR

VETERANS CLAIMS.—The first sentence of section 8440d(b)(2) of

title 5, United States Code, is amended to read as follows: ‘‘The

amount contributed by a judge of the United States Court of

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Appeals for Veterans Claims for any pay period may not exceed

the maximum percentage of such judge’s basic pay for such pay

period allowable under section 8440f.’’.

(6) MEMBERS OF THE UNIFORMED SERVICES.— (A) BASIC PAY.—Subparagraph (A) of section

8440e(d)(1) of title 5, United States Code, is amended by

striking ‘‘5 percent’’ and all that follows through ‘‘period.’’

and inserting ‘‘the maximum percentage of such member’s

basic pay for such pay period allowable under section

8440f.’’.

(B) COMPENSATION.—Subparagraph (B) of section

8440e(d)(1) of title 5, United States Code, is amended by

striking ‘‘5 percent’’ and all that follows through ‘‘period.’’

and inserting ‘‘the maximum percentage of such member’s

compensation for such pay period (received under such section 206) allowable under section 8440f.’’.

(7) MAXIMUM PERCENTAGE ALLOWABLE.— (A) IN GENERAL.—Title 5, United States Code, is

amended by inserting after section 8440e the following:

‘‘§ 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 beginning in fiscal year:

The maximum

percentage

allowable is:

2001 .................................................................................................................. 6

2002 .................................................................................................................. 7

2003 .................................................................................................................. 8

2004 .................................................................................................................. 9

2005 .................................................................................................................. 10

2006 or thereafter ............................................................................................ 100.’’.

(B) CONFORMING AMENDMENT.—The table of sections

for chapter 84 of title 5, United States Code, is amended by

inserting after the item relating to section 8440e the following:

‘‘8440f. Maximum percentage allowable for certain participants.’’.

(b) AMENDMENTS RELATING TO CSRS.—Paragraph (2) of section 8351(b) of title 5, United States Code, is amended—

(1) by striking ‘‘(2)’’ and inserting ‘‘(2)(A)’’;

(2) by striking ‘‘5 percent’’ and all that follows through ‘‘period.’’ and inserting ‘‘the maximum percentage of such employee’s or Member’s basic pay for such pay period allowable under

subparagraph (B).’’; and

(3) by adding at the end the following:

‘‘(B) The maximum percentage allowable under this subparagraph shall be determined in accordance with the following table:

‘‘In the case of a pay period beginning in fiscal year:

The maximum

percentage

allowable is:

2001 .................................................................................................................. 6

2002 .................................................................................................................. 7

2003 .................................................................................................................. 8

2004 .................................................................................................................. 9

2005 .................................................................................................................. 10

2006 or thereafter ............................................................................................ 100.’’.

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(c) EFFECTIVE DATE.— (1) IN GENERAL.—The amendments made by this section

shall take effect on the date of enactment of this Act.

(2) COORDINATION WITH ELECTION PERIODS.—The Executive

Director shall by regulation determine the first election period

in which elections may be made consistent with the amendments made by this section.

(3) DEFINITIONS.—For purposes of this section—

(A) the term ‘‘election period’’ means a period afforded

under section 8432(b) of title 5, United States Code; and

(B) the term ‘‘Executive Director’’ has the meaning

given such term by section 8401(13) of title 5, United States

Code.

SEC. 139. EXCLUSION OF ELEMENTS OF UNITED STATES SECRET

SERVICE FROM CERTAIN ACTIVITIES. Section 7103(a)(3) of title 5,

United States Code, is amended—

(1) in subparagraph (F), by striking ‘‘or’’ at the end;

(2) in subparagraph (G), by striking the period and inserting ‘‘; or’’; and

(3) by adding at the end the following new subparagraph:

‘‘(H) the United States Secret Service and the United

States Secret Service Uniformed Division.’’.

SEC. 140. (a) The adjustment in rates of basic pay for the statutory pay systems that takes effect in fiscal year 2001 under sections

5303 and 5304 of title 5, United States Code, shall be an increase

of 3.7 percent.

(b) Funds used to carry out this section shall be paid from appropriations which are made to each applicable department or

agency for salaries and expenses for fiscal year 2001.

SEC. 141. REPEAL OF MANDATORY SEPARATION REQUIREMENT. (a) IN GENERAL.—Section 8335 of title 5, United States Code, is

amended—

(1) by striking subsection (c); and

(2) by redesignating subsections (d) and (e) as subsections

(c) and (d), respectively.

(b) TECHNICAL AND CONFORMING AMENDMENT.—Section

8339(q) of title 5, United States Code, is amended by striking

‘‘8335(d)’’ and inserting ‘‘8335(c)’’.

SEC. 142. Section 223(a)(14) of the Juvenile Justice and Delinquency Prevention Act of 1974 (42 U.S.C. 5633(a)(14) as amended,

is hereby amended by inserting after the phrase ‘‘twenty-four hours’’

the following new phrase: ‘‘(except in the case of Alaska where such

time limit may be forty-eight hours in fiscal years 2000 through

2002)’’.

SEC. 143. (a) Section 336 of the Communications Act of 1934

(47 U.S.C. 336) is amended—

(1) by redesignating subsection (h) as subsection (i); and

(2) by inserting after subsection (g) the following:

‘‘(h)(1) Within 60 days after receiving a request (made in such

form and manner and containing such information as the Commission may require) under this subsection from a low-power television

station to which this subsection applies, the Commission shall authorize the licensee or permittee of that station to provide digital

data service subject to the requirements of this subsection as a pilot

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project to demonstrate the feasibility of using low-power television

stations to provide high-speed wireless digital data service, including Internet access to unserved areas.

‘‘(2) The low-power television stations to which this subsection applies are as follows:

‘‘(A) KHLM–LP, Houston, Texas.

‘‘(B) WTAM–LP, Tampa, Florida.

‘‘(C) WWRJ–LP, Jacksonville, Florida.

‘‘(D) WVBG–LP, Albany, New York.

‘‘(E) KHHI–LP, Honolulu, Hawaii.

‘‘(F) KPHE–LP (K19DD), Phoenix, Arizona.

‘‘(G) K34FI, Bozeman, Montana.

‘‘(H) K65GZ, Bozeman, Montana.

‘‘(I) WXOB–LP, Richmond, Virginia.

‘‘(J) WIIW–LP, Nashville, Tennessee.

‘‘(K) A station and repeaters to be determined by the

Federal Communications Commission for the sole purpose

of providing service to communities in the Kenai Peninsula

Borough and Matanuska Susitna Borough.

‘‘(L) WSPY–LP, Plano, Illinois.

‘‘(M) W24AJ, Aurora, Illinois.

‘‘(3) Notwithstanding any requirement of section 553 of title

5, United States Code, the Commission shall promulgate regulations establishing the procedures, consistent with the requirements of paragraphs (4) and (5), governing the pilot projects for

the provision of digital data services by certain low power television licensees within 120 days after the date of enactment of

LPTV Digital Data Services Act. The regulations shall set

forth—

‘‘(A) requirements as to the form, manner, and information required for submitting requests to the Commission

to provide digital data service as a pilot project;

‘‘(B) procedures for testing interference to digital television receivers caused by any pilot project station or remote transmitter;

‘‘(C) procedures for terminating any pilot project station or remote transmitter or both that causes interference

to any analog or digital full-power television stations, class

A television station, television translators or any other

users of the core television band;

‘‘(D) specifications for reports to be filed quarterly by

each low power television licensee participating in a pilot

project;

‘‘(E) procedures by which a low power television licensee participating in a pilot project shall notify television

broadcast stations in the same market upon commencement

of digital data services and for ongoing coordination with

local broadcasters during the test period; and

‘‘(F) procedures for the receipt and review of interference complaints on an expedited basis consistent with

paragraph (5)(D).

‘‘(4) A low-power television station to which this subsection

applies may not provide digital data service unless—

479

‘‘(A) the provision of that service, including any remote

return-path transmission in the case of 2-way digital data

service, does not cause any interference in violation of the

Commission’s existing rules, regarding interference caused

by low power television stations to full-service analog or

digital television stations, class A television stations, or television translator stations; and

‘‘(B) the station complies with the Commission’s regulations governing safety, environmental, and sound engineering practices, and any other Commission regulation under

paragraph (3) governing pilot program operations.

‘‘(5)(A) The Commission may limit the provision of digital

data service by a low-power television station to which this subsection applies if the Commission finds that—

‘‘(i) the provision of 2-way digital data service by that

station causes any interference that cannot otherwise be

remedied; or

‘‘(ii) the provision of 1-way digital data service by that

station causes any interference.

‘‘(B) The Commission shall grant any such station, upon

application (made in such form and manner and containing

such information as the Commission may require) by the licensee or permittee of that station, authority to move the station

to another location, to modify its facilities to operate on a different channel, or to use booster or auxiliary transmitting locations, if the grant of authority will not cause interference to the

allowable or protected service areas of full service digital television stations, National Television Standards Committee assignments, or television translator stations, and provided, however, no such authority shall be granted unless it is consistent

with existing Commission regulations relating to the movement,

modification, and use of non-class A low power television transmission facilities in order—

‘‘(i) to operate within television channels 2 through 51,

inclusive; or

‘‘(ii) to demonstrate the utility of low-power television

stations to provide high-speed 2-way wireless digital data

service.

‘‘(C) The Commission shall require quarterly reports from

each station authorized to provide digital data services under

this subsection that include—

‘‘(i) information on the station’s experience with interference complaints and the resolution thereof;

‘‘(ii) information on the station’s market success in providing digital data service; and

‘‘(iii) such other information as the Commission may

require in order to administer this subsection.

‘‘(D) The Commission shall resolve any complaints of interference with television reception caused by any station providing digital data service authorized under this subsection

within 60 days after the complaint is received by the Commission.

480

‘‘(6) The Commission shall assess and collect from any lowpower 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 lowpower television stations under this subsection. Amounts received by the Commission under this paragraph in excess of any

amount retained under the preceding sentence shall be deposited in the Treasury in accordance with chapter 33 of title 31,

United States Code.

‘‘(7) In this subsection, the term ‘digital data service’

includes—

‘‘(A) digitally-based interactive broadcast service; and

‘‘(B) wireless Internet access, without regard to—

‘‘(i) whether such access is—

‘‘(I) provided on a one-way or a two-way basis;

‘‘(II) portable or fixed; or

‘‘(III) connected to the Internet via a band allocated to Interactive Video and Data Service; and

‘‘(ii) the technology employed in delivering such

service, including the delivery of such service via multiple transmitters at multiple locations.

‘‘(8) Nothing in this subsection limits the authority of the

Commission under any other provision of law.’’.

(b) The Federal Communications Commission shall submit a

report to the Congress on June 30, 2001, and June 30, 2002, evaluating the utility of using low-power television stations to provide

high-speed digital data service. The reports shall be based on the

pilot projects authorized by section 336(h) of the Communications

Act of 1934 (47 U.S.C. 336(h)).

SEC. 144. (a) The Magnuson-Stevens Fishery Conservation and

Management Act (16 U.S.C. 1801 et. seq.) is amended—

(1) in section 303(d)(1)(A) by striking ‘‘October 1, 2000,’’

and inserting ‘‘October 1, 2002,’’;

(2) in section 303(d)(5) by striking ‘‘October 1, 2000,’’ and

inserting ‘‘October 1, 2002,’’;

(3) in section 407(b) by striking ‘‘October 1, 2000,’’ and inserting ‘‘October 1, 2002,’’; and

(4) in section 407(c)(1) by striking ‘‘October 1, 2000,’’ and

inserting ‘‘October 1, 2002,’’.

(b) Notwithstanding sections 303(d)(1)(A) and 303(d)(1)(B) of

the Magnuson-Stevens Fishery Conservation and Management Act,

as amended by this section, the Pacific Fishery Management Council may recommend and the Secretary of Commerce may approve

and implement any fishery management plan, plan amendment, or

regulation, for fixed gear sablefish subject to the jurisdiction of such

Council, that—

(1) allows the use of more than one groundfish fishing permit by each fishing vessel; and/or

481

(2) sets cumulative trip limit periods, up to twelve months

in any calendar year, that allow fishing vessels a reasonable opportunity to harvest the full amount of the associated trip limits.

Notwithstanding subsection (a), the Gulf of Mexico Fishery Management Council may develop a biological, economic, and social profile

of any fishery under its jurisdiction that may be considered for

management under a quota management system, including the benefits and consequences of the quota management systems considered.

The North Pacific Fishery Management Council shall examine the

fisheries under its jurisdiction, particularly the Gulf of Alaska

groundfish and Bering Sea crab fisheries, to determine whether rationalization is needed. In particular, the North Pacific Council

shall analyze individual fishing quotas, processor quotas, cooperatives, and quotas held by communities. The analysis should include

an economic analysis of the impact of all options on communities

and processors as well as the fishing fleets. The North Pacific Council shall present its analysis to the appropriations and authorizing

committees of the Senate and House of Representatives in a timely

manner.

(c)(1) Public Law 101–380, as amended by section 2204 of chapter 2 of title II of Public Law 106–246, is amended further—

(A) by striking the second sentence of section 5008(c) and

inserting in lieu thereof ‘‘The Federal Advisory Committee Act

(5 U.S.C. App. 2) shall not apply to the Institute.’’;

(B) by inserting the following sentence at the end of section

5008(e): ‘‘The administrative funds of the Institute and the administrative funds of the North Pacific Research Board created

under Public Law 105–83 may be used to jointly administer

such programs at the discretion of the North Pacific Research

Board.’’; and

(C) in section 5006(c), as amended by this Act or any other

Act making appropriations for fiscal year 2001, by striking the

colon immediately before the first proviso and inserting in lieu

thereof, ‘‘of which up to $3,000,000 may be used for the lease

payment to the Alaska SeaLife Center under section

5008(b)(2):’’.

(2) Section 401(e) of Public Law 105–83 is amended—

(A) in paragraph (2) by striking ‘‘and recommended for Secretarial approval’’;

(B) in paragraph (3)(A) by striking ‘‘, who shall be a cochair of the Board’’;

(C) in paragraph (3)(F) by striking ‘‘, who shall be a cochair 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

482

(G) in paragraph (3) by adding at the end the following:

‘‘(N) one member who shall represent fishing interests

and shall be nominated by the Board and appointed by the

Secretary.’’.

(3) Funds made available for the construction of the NOAA laboratory at Lena Point shall be considered incremental funding for

the initial phase of construction at Lena Point for site work and related infrastructure and systems installation.

(4) Notwithstanding any other provision of law, funds made

available by this Act or any other Act for the Alaska SeaLife Center

shall be considered direct payments for all purposes of applicable

law.

(5) Public Law 99–5 is amended—

(A) by inserting after section 3(e) the following:

‘‘(f) The United States shall be represented on the

Transboundary Panel by seven panel members, of whom—

‘‘(1) one shall be an official of the United States Government, with salmon fishery management responsibility and expertise;

‘‘(2) one shall be an official of the State of Alaska, with

salmon fishery management responsibility and expertise; and

‘‘(3) five shall be individuals knowledgeable and experienced in the salmon fisheries for which the Transboundary

Panel is responsible.’’;

(B) by renumbering the remaining subsections;

(C) in section 3(g), as redesignated by this subsection, by

striking ‘‘The appointing authorities’’ and inserting in lieu

thereof ‘‘For the northern, southern, and Fraser River panels,

the appointing authorities’’; and

(D) in section 3(h)(3), as redesignated by this subsection, by

striking ‘‘northern and southern’’ and inserting in lieu thereof

‘‘northern, southern, and transboundary’’.

(6) The fishery research vessel for which funds were appropriated in Public Law 106–113 shall be homeported in Kodiak,

Alaska, and is hereby named ‘‘OSCAR DYSON’’.

(d)(1) The Secretary of Commerce (hereinafter ‘‘the Secretary’’)

shall, after notice and opportunity for public comment, adopt final

regulations not later than May 1, 2001 to implement a fishing capacity reduction program for crab fisheries included in the Fishery

Management Plan for Commercial King and Tanner Crab Fisheries

in the Bering Sea and Aleutian Islands (hereinafter ‘‘BSAI crab

fisheries’’). In implementing the program the Secretary shall—

(A) reduce the fishing capacity in the BSAI crab fisheries

by permanently reducing the number of license limitation program crab licenses;

(B) permanently revoke all fishery licenses, fishery permits,

area and species endorsements, and any other fishery privileges,

for all fisheries subject to the jurisdiction of the United States,

issued to a vessel or vessels (or to persons on the basis of their

operation or ownership of that vessel or vessels) for which a

BSAI crab fisheries reduction permit is surrendered and revoked under section 6011(b) of title 50, Code of Federal Regulations;

483

(C) ensure that the Secretary of Transportation is notified

of each vessel for which a reduction permit is surrendered and

revoked under the program, with a request that such Secretary

permanently revoke the fishery endorsement of each such vessel

and refuse permission to transfer any such vessel to a foreign

flag under paragraph (5);

(D) ensure that vessels removed from the BSAI crab fisheries under the program are made permanently ineligible to

participate in any fishery worldwide, and that the owners of

such vessels contractually agree that such vessels will operate

only under the United States flag or be scrapped as a reduction

vessel pursuant to section 600.1011(c) of title 50, Code of Federal Regulations;

(E) ensure that vessels removed from the BSAI crab fisheries, the owners of such vessels, and the holders of fishery permits for such vessels forever relinquish any claim associated

with such vessel, permits, and any catch history associated with

such vessel or permits that could qualify such vessel, vessel

owner, or permit holder for any present or future limited access

system fishing permits in the United States fisheries based on

such vessel, permits, or catch history;

(F) not include the purchase of Norton Sound red king crab

or Norton Sound blue king crab endorsements in the program,

though any such endorsements associated with a reduction permit or vessel made ineligible or scrapped under the program

shall also be surrendered and revoked as if surrendered and revoked pursuant to section 600.1011(b) of title 50, Code of Federal Regulations;

(G) seek to obtain the maximum sustained reduction in

fishing capacity at the least cost by establishing bidding procedures that—

(i) assign a bid score to each bid by dividing the price

bid for each reduction permit by the total value of the crab

landed in the most recent five-year period in each crab fishery from 1990 through 1999 under that permit, with the

value for each year determined by multiplying the average

price per pound published by the State of Alaska in each

year for each crab fishery included in such reduction permit by the total pounds landed in each crab fishery under

that permit in that year; and

(ii) use a reverse auction in which the lowest bid score

ranks first, followed by each bid with the next lowest bid

score, until the total bid amount of all bids equals a reduction cost that the next lowest bid would cause to exceed

$100,000,000;

(H) not waive or otherwise make inapplicable any requirements of the License Limitation Program applicable to such

crab fisheries, in particular any requirements in sections

679.4(k) and (l) of title 50, Code of Federal Regulations;

(I) not waive or otherwise make inapplicable any catcher

vessel sideboards implemented under the American Fisheries

Act (AFA), except that the North Pacific Fishery Management

Council shall recommend to the Secretary and to the State of

Alaska, not later than February 16, 2001, and the Secretary

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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 subamount attributable to that fishery; and

(K) notwithstanding section 1111(b) of the Merchant Marine Act, 1936 (46 U.S.C. App. 1279f(b)(4)), establish a repayment period for the reduction loan of not less than 30 years.

(2)(A) Only persons to whom a non-interim BSAI crab license and an area/species endorsement have been issued (other

than persons to whom only a license and an area/species endorsement for Norton Sound red king crab or Norton Sound

blue king crab have been issued) for vessels that—

(i) qualify under the License Limitation Program criteria set forth in section 679.4 of title 50, Code of Federal

Regulations, and

(ii) have made at least one landing of BSAI crab in either 1996, 1997, or prior to February 7 in 1998, may submit a bid in the fishing capacity reduction program established by this section.

(B) After the date of enactment of this section—

(i) no vessel 60 feet or greater in length overall may

participate in any BSAI crab fishery (other than for Norton

Sound red king crab or Norton Sound blue king crab) unless such vessel meets the requirements set forth in subparagraphs (A)(i) and (A)(ii) of this paragraph; and

(ii) no vessel between 33 and 60 feet in length overall

may participate in any BSAI crab fishery (other than for

Norton Sound red king crab or Norton Sound blue king

crab) unless such vessel meets the requirements set forth in

subparagraph (A)(i) of this paragraph. Nothing in this

paragraph shall be construed to affect the requirements for

participation in the fisheries for Norton Sound red king

crab or Norton Sound blue king crab. The Secretary may,

on a case by case basis and after notice and opportunity for

public comment, waive the application of subparagraph

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(A)(ii) of this paragraph if the Secretary determines such

waiver is necessary to implement one of the specific exemptions to the recent participation requirement that were recommended by the North Pacific Fishery Management

Council in the record of its October, 1998 meeting.

(3) The fishing capacity reduction program required under

this subsection shall be implemented under this subsection and

sections 312(b)–(e) of the Magnuson-Stevens Fishery Conservation and Management Act (16 U.S.C. 1861a(b)–(e)). Section 312

and the regulations found in Subpart L of Part 600 of title 50,

Code of Federal Regulations, shall apply only to the extent such

section or regulations are not inconsistent with or made inapplicable by the specific provisions of this subsection. Sections

600.1001, 600.1002, 600.1003, 600.1005, 600.1010(b),

600.1010(d)(1), 600.1011(d), the last sentence of 600.1011(a),

and the last sentence of 600.1014(f) of such Subpart shall not

apply to the program implemented under this subsection. The

program shall be deemed accepted under section 600.1004, and

any time period specified in Subpart L that would prevent the

Secretary from complying with the May 1, 2001 date required

by this subsection shall be modified as appropriate to permit

compliance with that date. The referendum required for the program under this subsection shall be a post-bidding referendum

under section 600.1010 of title 50, Code of Federal Regulations.

(4)(A) The fishing capacity reduction program required

under this subsection is authorized to be financed in equal

parts through a reduction loan of $50,000,000 under sections

1111 and 1112 of title XI of the Merchant Marine Act, 1936 (46

U.S.C. App. 1279f and 1279g) and $50,000,000 which is authorized to be appropriated for the purposes of such program.

(B) Of the $1,000,000 appropriated in section 120 of Division A of Public Law 105–277 for the cost of a direct loan in

the Bering Sea and Aleutian Islands crab fisheries—

(i) $500,000 shall be for the cost of guaranteeing the reduction loan required under subparagraph (A) of this paragraph in accordance with the requirements of the Federal

Credit Reform Act; and

(ii) $500,000 shall be available to the Secretary to pay

for the cost of implementing the fishing capacity reduction

program required by this subsection.

(C) The funds described in this subsection shall remain

available, without fiscal year limitation, until expended. Any

funds not used for the fishing capacity reduction program required by this subsection, whether due to a rejection by referendum or otherwise, shall be available on or after October 15,

2002, without fiscal year limitation, for assistance to fishermen

or fishing communities.

(5)(A) The Secretary of Transportation shall, upon notification and request by the Secretary, for each vessel identified in

such notification and request—

(i) permanently revoke any fishery endorsement issued

to such vessel under section 12108 of title 46, United States

Code; and

486

(ii) refuse to grant the approval required under section

9(c)(2) of the Shipping Act, 1916 (46 U.S.C. App. 808(c)(2))

for the placement of such vessel under foreign registry or

the operation of such vessel under the authority of a foreign

country.

(B) The Secretary shall, after notice and opportunity for

public comment, adopt final regulations not later than May 1,

2001 to prohibit any vessel for which a reduction permit is surrendered and revoked under the fishing capacity reduction program required by this section from engaging in fishing activities on the high seas or under the jurisdiction of any foreign

country while operating under the United States flag.

(6) The purpose of this subsection is to implement a fishing

capacity reduction program for the BSAI crab fisheries that results in final action to permanently remove harvesting capacity

from such fisheries prior to December 31, 2001. In implementing this subsection the Secretary is directed to use, to the

extent practicable, information collected and maintained by the

State of Alaska. Any requirements of the Paperwork Reduction

Act, the Regulatory Flexibility Act, or any Executive Order that

would, in the opinion of the Secretary, prevent the Secretary

from meeting the deadlines set forth in this subsection shall not

apply to the fishing capacity reduction program or the promulgation of regulations to implement such program required by

this subsection. Nothing in this subsection shall be construed to

prohibit the North Pacific Fishery Management Council from

recommending, or the Secretary from approving, changes to any

Fishery Management Plan, License Limitation Program, or

American Fisheries Act provisions affecting catcher vessel

sideboards in accordance with applicable law: Provided, That

except as specifically provided in this subsection, such Council

may not recommend, and the Secretary may not approve, any

action that would have the effect of increasing the number of

vessels eligible to participate in the BSAI crab fisheries after

March 1, 2001.

(e)(1) This subsection may be referred to as the ‘‘Pribilof Islands

Transition Act’’.

(2) The purpose of this subsection is to complete the orderly

withdrawal of the National Oceanic and Atmospheric Administration from the civil administration of the Pribilof Islands, Alaska.

(3) Public Law 89–702 (16 U.S.C. 1151 et seq.), popularly

known and referred to in this subsection as the Fur Seal Act of

1966, is amended by amending section 206 (16 U.S.C. 1166) to read

as follows:

‘‘SEC. 206. (a)(1) Subject to the availability of appropriations,

the Secretary shall provide financial assistance to any city government, village corporation, or tribal council of St. George, Alaska, or

St. Paul, Alaska.

‘‘(2) Notwithstanding any other provision of law relating to

matching funds, funds provided by the Secretary as assistance

under this subsection may be used by the entity as non-Federal

matching funds under any Federal program that requires such

matching funds.

487

‘‘(3) The Secretary may not use financial assistance authorized

by this Act—

‘‘(A) to settle any debt owed to the United States;

‘‘(B) for administrative or overhead expenses; or

‘‘(C) for contributions sought or required from any person

for costs or fees to clean up any matter that was caused or contributed to by such person on or after March 15, 2000.

‘‘(4) In providing assistance under this subsection the Secretary

shall transfer any funds appropriated to carry out this section to the

Secretary of the Interior, who shall obligate such funds through instruments and procedures that are equivalent to the instruments

and procedures required to be used by the Bureau of Indian Affairs

pursuant to title IV of the Indian Self-Determination and Education

Assistance Act (25 U.S.C. 450 et seq.).

‘‘(5) In any fiscal year for which less than all of the funds authorized under subsection (c)(1) are appropriated, such funds shall

be distributed under this subsection on a pro rata basis among the

entities referred to in subsection (c)(1) in the same proportions in

which amounts are authorized by that subsection for grants to those

entities.

‘‘(b)(1) Subject to the availability of appropriations, the Secretary shall provide assistance to the State of Alaska for designing,

locating, constructing, redeveloping, permitting, or certifying solid

waste management facilities on the Pribilof Islands to be operated

under permits issued to the City of St. George and the City of St.

Paul, Alaska, by the State of Alaska under section 46.03.100 of the

Alaska Statutes.

‘‘(2) The Secretary shall transfer any appropriations received

under paragraph (1) to the State of Alaska for the benefit of rural

and Native villages in Alaska for obligation under section 303 of

Public Law 104–182, except that subsection (b) of that section shall

not apply to those funds.

‘‘(3) In order to be eligible to receive financial assistance under

this subsection, not later than 180 days after the date of enactment

of this paragraph, each of the Cities of St. Paul and St. George

shall enter into a written agreement with the State of Alaska under

which such City shall identify by its legal boundaries the tract or

tracts of land that such City has selected as the site for its solid

waste management facility and any supporting infrastructure.

‘‘(c) There are authorized to be appropriated to the Secretary for

fiscal years 2001, 2002, 2003, 2004, and 2005—

‘‘(1) for assistance under subsection (a) a total not to

exceed—

‘‘(A) $9,000,000, for grants to the City of St. Paul;

‘‘(B) $6,300,000, for grants to the Tanadgusix Corporation;

‘‘(C) $1,500,000, for grants to the St. Paul Tribal Council;

‘‘(D) $6,000,000, for grants to the City of St. George;

‘‘(E) $4,200,000, for grants to the St. George Tanaq

Corporation; and

‘‘(F) $1,000,000, for grants to the St. George Tribal

Council; and

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‘‘(2) for assistance under subsection (b), for fiscal years

2001, 2002, 2003, 2004, and 2005 a total not to exceed—

‘‘(A) $6,500,000 for the City of St. Paul; and

‘‘(B) $3,500,000 for the City of St. George.

‘‘(d) None of the funds authorized by this section may be available for any activity a purpose of which is to influence legislation

pending before the Congress, except that this subsection shall not

prevent officers or employees of the United States or of its departments, agencies, or commissions from communicating to Members of

Congress, through proper channels, requests for legislation or appropriations that they consider necessary for the efficient conduct of

public business.

‘‘(e) Neither the United States nor any of its agencies, officers,

or employees shall have any liability under this Act or any other

law associated with or resulting from the designing, locating, contracting for, redeveloping, permitting, certifying, operating, or maintaining any solid waste management facility on the Pribilof Islands

as a consequence of—

‘‘(1) having provided assistance to the State of Alaska

under subsection (b); or

‘‘(2) providing funds for, or planning, constructing, or operating, any interim solid waste management facilities that may

be required by the State of Alaska before permanent solid waste

management facilities constructed with assistance provided

under subsection (b) are complete and operational.

‘‘(f) Each entity which receives assistance authorized under subsection (c) shall submit an audited statement listing the expenditure

of that assistance to the Committee on Appropriations and the Committee on Resources of the House of Representatives and the Committee on Appropriations and the Committee on Commerce, Science,

and Transportation of the Senate, on the last day of fiscal years

2002, 2004, and 2006.

‘‘(g) Amounts authorized under subsection (c) are intended by

Congress to be provided in addition to the base funding appropriated to the National Oceanic and Atmospheric Administration in

fiscal year 2000.’’.

(4) Section 205 of the Fur Seal Act of 1966 (16 U.S.C. 1165)

is amended—

(A) by amending subsection (c) to read as follows:

‘‘(c) Not later than 3 months after the date of the enactment of

the Pribilof Islands Transition Act, the Secretary shall submit to the

Committee on Commerce, Science, and Transportation of the Senate

and the Committee on Resources of the House of Representatives a

report that includes—

‘‘(1) a description of all property specified in the document

referred to in subsection (a) that has been conveyed under that

subsection;

‘‘(2) a description of all Federal property specified in the

document referred to in subsection (a) that is going to be conveyed under that subsection; and

‘‘(3) an identification of all Federal property on the Pribilof

Islands that will be retained by the Federal Government to meet

its responsibilities under this Act, the Convention, and any

other applicable law.’’; and

489

(B) by striking subsection (g).

(5)(A)(i) The Secretary of Commerce shall not be considered

to have any obligation to promote or otherwise provide for the

development of any form of an economy not dependent on sealing on the Pribilof Islands, Alaska, including any obligation

under section 206 of the Fur Seal Act of 1966 (16 U.S.C. 1166)

or section 3(c)(1)(A) of Public Law 104–91 (16 U.S.C. 1165

note).

(ii) This subparagraph shall not affect any cause of action

under section 206 of the Fur Seal Act of 1966 (16 U.S.C. 1166)

or section 3(c)(1)(A) of Public Law 104–91 (16 U.S.C. 1165

note)—

(I) that arose before the date of the enactment of this

title; and

(II) for which a judicial action is filed before the expiration of the 5-year period beginning on the date of the enactment of this title.

(iii) Nothing in this subsection shall be construed to imply

that—

(I) any obligation to promote or otherwise provide for

the development in the Pribilof Islands of any form of an

economy not dependent on sealing was or was not established by section 206 of the Fur Seal Act of 1966 (16 U.S.C.

1166), section 3(c)(1)(A) of Public Law 104–91 (16 U.S.C.

1165 note), or any other provision of law; or

(II) any cause of action could or could not arise with

respect to such an obligation.

(iv) Section 3(c)(1) of Public Law 104–91 (16 U.S.C. 1165

note) is amended by striking subparagraph (A) and redesignating subparagraphs (B) through (D) in order as subparagraphs (A) through (C).

(B)(i) Subject to paragraph (5)(B)(ii), there are terminated

all obligations of the Secretary of Commerce and the United

States to—

(I) convey property under section 205 of the Fur Seal

Act of 1966 (16 U.S.C. 1165); and

(II) carry out cleanup activities, including assessment,

response, remediation, and monitoring, except for

postremedial measures such as monitoring and operation

and maintenance activities related to National Oceanic and

Atmospheric Administration administration of the Pribilof

Islands, Alaska, under section 3 of Public Law 104–91 (16

U.S.C. 1165 note) and the Pribilof Islands Environmental

Restoration Agreement between the National Oceanic and

Atmospheric Administration and the State of Alaska,

signed January 26, 1996.

(ii) Paragraph (5)(B)(i) shall apply on and after the date on

which the Secretary of Commerce certifies that—

(I) the State of Alaska has provided written confirmation that no further corrective action is required at the sites

and operable units covered by the Pribilof Islands Environmental Restoration Agreement between the National Oceanic and Atmospheric Administration and the State of

Alaska, signed January 26, 1996, with the exception of

490

postremedial measures, such as monitoring and operation

and maintenance activities;

(II) the cleanup required under section 3(a) of Public

Law 104–91 (16 U.S.C. 1165 note) is complete;

(III) the properties specified in the document referred to

in subsection (a) of section 205 of the Fur Seal Act of 1966

(16 U.S.C. 1165(a)) can be unconditionally offered for conveyance under that section; and

(IV) all amounts appropriated under section 206(c)(1)

of the Fur Seal Act of 1966, as amended by this title, have

been obligated.

(iii)(I) On and after the date on which section 3(b)(5) of

Public Law 104–91 (16 U.S.C. 1165 note) is repealed pursuant

to subparagraph (C), the Secretary of Commerce may not seek

or require financial contribution by or from any local governmental entity of the Pribilof Islands, any official of such an entity, or the owner of land on the Pribilof Islands, for cleanup

costs incurred pursuant to section 3(a) of Public Law 104–91

(as in effect before such repeal), except as provided in subparagraph (B)(iii)(II).

(II) Subparagraph (B)(iii)(I) shall not limit the authority of

the Secretary of Commerce to seek or require financial contribution from any person for costs or fees to clean up any matter

that was caused or contributed to by such person on or after

March 15, 2000.

(iv) For purposes of paragraph (2)(C), the following requirements shall not be considered to be conditions on conveyance of

property:

(I) Any requirement that a potential transferee must

allow the National Oceanic and Atmospheric Administration continued access to the property to conduct environmental monitoring following remediation activities.

(II) Any requirement that a potential transferee must

allow the National Oceanic and Atmospheric Administration access to the property to continue the operation, and

eventual closure, of treatment facilities.

(III) Any requirement that a potential transferee must

comply with institutional controls to ensure that an environmental cleanup remains protective of human health or

the environment that do not unreasonably affect the use of

the property.

(IV) Valid existing rights in the property, including

rights granted by contract, permit, right-of-way, or easement.

(V) The terms of the documents described in subparagraph (d)(2).

(C) Effective on the date on which the Secretary of Commerce makes the certification described in subparagraph (b)(2),

the following provisions are repealed:

(i) Section 205 of the Fur Seal Act of 1966 (16 U.S.C.

1165).

(ii) Section 3 of Public Law 104–91 (16 U.S.C. 1165

note).

491

(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:

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‘‘(g)(1) Of amounts authorized under subsection (f) for each of

fiscal years 2001, 2002, 2003, 2004, and 2005, the Secretary may

provide to the State of Alaska up to $2,000,000 per fiscal year to

capitalize a revolving fund to be used by the State for loans under

this subsection.

‘‘(2) The Secretary shall require that any revolving fund established with amounts provided under this subsection shall be used

only to provide low-interest loans to Natives of the Pribilof Islands

to assess, respond to, remediate, and monitor contamination from

lead paint, asbestos, and petroleum from underground storage

tanks.

‘‘(3) The definitions set forth in section 101 of the Fur Seal Act

of 1966 (16 U.S.C. 1151) shall apply to this section, except that the

term ‘Natives of the Pribilof Islands’ includes the Tanadgusix and

Tanaq Corporations.

‘‘(4) Before the Secretary may provide any funds to the State of

Alaska under this section, the State of Alaska and the Secretary

must agree in writing that, on the last day of fiscal year 2011, and

of each fiscal year thereafter until the full amount provided to the

State of Alaska by the Secretary under this section has been repaid

to the United States, the State of Alaska shall transfer to the Treasury of the United States monies remaining in the revolving fund, including principal and interest paid into the revolving fund as repayment of loans.’’.

(f)(1) The President, after consultation with the Governor of the

State of Hawaii, may designate any Northwestern Hawaiian Islands coral reef or coral reef ecosystem as a coral reef reserve to be

managed by the Secretary of Commerce.

(2) Upon the designation of a reserve under paragraph (1) by

the President, the Secretary shall—

(A) take action to initiate the designation of the reserve as

a National Marine Sanctuary under sections 303 and 304 of the

National Marine Sanctuaries Act (16 U.S.C. 1433);

(B) establish a Northwestern Hawaiian Islands Reserve Advisory Council under section 315 of that Act (16 U.S.C. 1445a),

the membership of which shall include at least 1 representative

from Native Hawaiian groups; and

(C) until the reserve is designated as a National Marine

Sanctuary, manage the reserve in a manner consistent with the

purposes and policies of that Act.

(3) Notwithstanding any other provision of law, no closure

areas around the Northwestern Hawaiian Islands shall become permanent without adequate review and comment.

(4) The Secretary shall work with other Federal agencies and

the Director of the National Science Foundation, to develop a coordinated plan to make vessels and other resources available for

conservation or research activities for the reserve.

(5) If the Secretary has not designated a national marine sanctuary in the Northwestern Hawaiian Islands under sections 303

and 304 of the National Marine Sanctuaries Act (16 U.S.C. 1433,

1434) before October 1, 2005, the Secretary shall conduct a review

of the management of the reserve under section 304(e) of that Act

(16 U.S.C. 1434(e)).

493

(6) No later than 6 months after the date of enactment of this

Act, the Secretary shall submit a report to the Senate Committee on

Commerce, Science, and Transportation and the House of Representatives Committee on Resources, describing actions taken to

implement this subsection, including costs of monitoring, enforcing,

and addressing marine debris, and the extent to which the fiscal or

other resources necessary to carry out this subsection are reflected

in the Budget of the United States Government submitted by the

President under section 1104 of title 31, United States Code.

(7) There are authorized to be appropriated to the Secretary of

Commerce to carry out the provisions of this subsection such sums,

not exceeding $4,000,000 for each of fiscal years 2001, 2002, 2003,

2004, and 2005, as are reported under paragraph (5) to be reflected

in the Budget of the United States Government.

(g) Section 111(b)(1) of the Sustainable Fisheries Act (16 U.S.C.

1855 nt) is amended by striking the last sentence and inserting,

‘‘There are authorized to be appropriated to carry out this subsection

$500,000 for each fiscal year.’’.

SEC. 145. (a) Section 4(b)(1) of the Department of State Special

Agents Retirement Act of 1998 (22 U.S.C. 4044 note; Public Law

105–382; 112 Stat. 3409) is amended by inserting ‘‘or participant

who was serving as of January 1, 1997’’ after ‘‘employed participant’’.

(b) The amendment made by this section shall take effect on

January 1, 2001.

SEC. 146. (a) Congress makes the following findings:

(1) Total steel imports in 2000 will be over 21⁄2 times higher

than in 1991, continuing the alarming trend of sharply increasing steel imports over the past decade.

(2) Unprecedented levels of steel imports flooded the United

States market in 1998 and 1999, causing a crisis in which

thousands of steelworkers were laid off and 6 steel companies

went bankrupt.

(3) The domestic steel industry still has not had an opportunity to recover from the 1998–1999 steel import crisis, and

steel imports are again causing serious injury to United States

steel producers and workers.

(4) Total steel imports through August 2000 are 17 percent

higher than over the same period in 1999 and greater even than

imports over the same period in 1998, a record year.

(5) Steel prices continue to be depressed, with hot-rolled

steel prices 12 percent lower in August 2000 than in the first

quarter of 1998, and average import customs values for all steel

products more than 15 percent lower over the same period.

(6) The United States Government must maintain and fully

enforce all existing relief against foreign unfair trade.

(7) The United States steel industry is a clean, highly efficient industry having modernized itself at great human and financial cost, shedding over 330,000 jobs and investing more

than $50,000,000,000 over the last 20 years.

(8) Capacity utilization in the United States steel industry

has fallen sharply since the beginning of the year and the market capitalization and debt ratings of the major United States

steel firms are at precarious levels.

494

(9) The Department of Commerce recently documented the

underlying market-distorting practices and longstanding structural problems that plague the global steel trade with excess capacity and cause diversion of unfairly traded foreign steel to the

United States.

(10) The President recognized that unfair trade played a

significant role in the devastating import surge of steel and recognized the need to vigorously enforce the trade laws.

(b) Congress calls upon the President—

(1) to take all appropriate action within his power to provide relief from injury caused by steel imports; and

(2) to immediately request the United States International

Trade Commission to commence an expedited investigation for

positive adjustment under section 201 of the Trade Act of 1974

of such steel imports.

SEC. 147. Section 5(b)(1) of the Act of January 2, 1951 (15

U.S.C. 1175(b)(1); popularly known as the ‘‘Johnson Act’’) is amended by inserting ‘‘for a voyage or a segment of a voyage that begins

and ends in the State of Hawaii, or’’ after ‘‘Except’’.

SEC. 148. (a) Section 312(a)(7) of the Communications Act of

1934 (47 U.S.C. 312(a)(7)) is amended by inserting ‘‘, other than a

non-commercial educational broadcast station,’’ after ‘‘use of a

broadcasting station’’.

(b) The Federal Communications Commission shall take no action against any non-commercial educational broadcast station

which declines to carry a political advertisement.

SEC. 149. The Small Business Innovation Research program,

otherwise expiring at the end of fiscal year 2000, is authorized to

continue in effect during fiscal year 2001.

SEC. 150. There is hereby appropriated for payment to the Ricky

Ray Hemophilia Relief Fund, as provided by Public Law 105–369,

$105,000,000, of which notwithstanding any other provision of law

$10,000,000 shall be for program management of the Health Resources and Services Administration, to remain available until expended.

SEC. 151. (a) There is hereby appropriated to a separate account

to be established in the Department of Labor for expenses of administering the Energy Employees Occupational Illness Compensation

Act, $60,400,000, to remain available until expended: Provided,

That the Secretary of Labor is authorized to transfer to any Executive agency with authority under the Energy Employees Occupational Illness Compensation Act, such sums as may be necessary in

FY 2001 to carry out those authorities.

(b) For purposes of the Balanced Budget and Emergency Deficit

Control Act of 1985, amounts appropriated under subsection (a)

shall be direct spending: Provided, That amounts appropriated annually thereafter for such administrative expenses shall be direct

spending.

SEC. 152. TREATMENT OF CERTAIN CANCER HOSPITALS. (a) IN

GENERAL.—Section 1886(d)(1)(B)(v) of the Social Security Act (42

U.S.C. 1395ww(d)(1)(B)(v)) is amended—

(1) in subclause (I) by striking ‘‘or’’ at the end;

(2) in subclause (II) by striking the semicolon at the end

and inserting ‘‘, or’’; and

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(3) by adding at the end the following:

‘‘(III) a hospital that was recognized as a clinical cancer research center by the National Cancer Institute of the National

Institutes of Health as of February 18, 1998, that has never

been reimbursed for inpatient hospital services pursuant to a

reimbursement system under a demonstration project under section 1814(b), that is a freestanding facility organized primarily

for treatment of and research on cancer and is not a unit of another hospital, that as of the date of the enactment of this subclause, is licensed for 162 acute care beds, and that demonstrates for the 4-year period ending on June 30, 1999, that

at least 50 percent of its total discharges have a principal finding of neoplastic disease, as defined in subparagraph (E);’’ and

(b) CONFORMING AMENDMENT.—Section 1886(d)(1)(E) of the Social Security Act (42 U.S.C. 1395ww(d)(1)(E)) is amended by striking ‘‘For purposes of subparagraph (B)(v)(II)’’ and inserting ‘‘For

purposes of subclauses (II) and (III) of subparagraph (B)(v)’’.

(c) PAYMENT.—

(1) APPLICATION TO COST REPORTING PERIODS.—Any classification by reason of section 1886(d)(1)(B)(v)(III) of the Social

Security Act (as added by subsection (a)) shall apply to 12-

month cost reporting periods beginning on or after July 1, 1999.

(2) BASE YEAR.—Notwithstanding the provisions of section

1886(b)(3)(E) of such Act (42 U.S.C. 1395ww(b)(3)(E)) or other

provisions to the contrary, the base cost reporting period for

purposes of determining the target amount for any hospital

classified by reason of section 1886(d)(1)(B)(v)(III) of such Act

(as added by subsection (a)) shall be the 12-month cost reporting period beginning on July 1, 1995.

(3) DEADLINE FOR PAYMENTS.—Any payments owed to a

hospital by reason of this subsection shall be made expeditiously, but in no event later than 1 year after the date of the

enactment of this Act.

SEC. 153. (a) Section 4(2) of the Delta Development Act (42

U.S.C. 3121 note; Public Law 100–460) is amended—

(1) by inserting ‘‘Alabama,’’ before ‘‘Arkansas’’;

(2) in paragraph (G), by striking ‘‘and’’ at the end;

(3) in paragraph (H)—

(A) by striking ‘‘and’’ before ‘‘such’’; and

(B) by inserting ‘‘and’’ after the semicolon at the end;

and

(4) by adding at the end the following:

‘‘(I) the Alabama counties of Pickens, Greene, Sumter,

Choctaw, Clarke, Washington, Marengo, Hale, Perry,

Wilcox, Lowndes, Bullock, Macon, Barbour, Russell, and

Dallas;’’;

(b) At the end of section 382A of ‘‘The Delta Regional Authority

Act of 2000’’ as incorporated in this Act, insert the following:

‘‘(4) Notwithstanding any other provision of law, the State

of Alabama shall be a full member of the Delta Regional Authority and shall be entitled to all rights and privileges that

said membership affords to all other participating States in the

Delta Regional Authority.’’.

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SEC. 154. NORTHERN WISCONSIN.

(a) DEFINITION OF NORTHERN WISCONSIN.—In this section, the

term ‘‘northern Wisconsin’’ means the counties of Douglas, Ashland,

Bayfield, and Iron, Wisconsin.

(b) ESTABLISHMENT OF PROGRAM.—The Secretary of the Army

may establish a pilot program to provide environmental assistance

to non-Federal interests in northern Wisconsin.

(c) FORM OF ASSISTANCE.—Assistance under this section may be

in the form of design and reconstruction assistance or water-related

environmental infrastructure and resource protection and development projects in northern Wisconsin, including projects for wastewater treatment and related facilities, water supply and related facilities, environmental restoration, and surface water resource protection and development.

(d) PUBLIC OWNERSHIP REQUIREMENT.—The Secretary may provide assistance for a project under this section only if the project is

publicly owned.

(e) LOCAL COOPERATION AGREEMENT.— (1) IN GENERAL.—Before providing assistance under this

section, the Secretary shall enter into a local cooperation agreement with a non-Federal interest to provide for design and construction of the project to be carried out with the assistance.

(2) REQUIREMENTS.—Each local cooperation agreement entered into under this subsection shall provide for the following:

(A) PLAN.—Development by the Secretary, in consultation with appropriate Federal and State officials, of a facilities or restructure protection and development plan, including appropriate engineering plans and specifications.

(B) LEGAL AND INSTITUTIONAL STRUCTURES.—Establishment of such legal and institutional structures as are

necessary to ensure the effective long-term operation of the

project by the non-Federal interest.

(3) COST SHARING.— (A) IN GENERAL.—The Federal share of project costs

under each local cooperation agreement entered into under

this subsection shall be 75 percent. The Federal share may

be in the form of grants or reimbursements of project costs.

(B) CREDIT FOR DESIGN WORK.—The non-Federal interest shall receive credit for the reasonable costs of design

work completed by the non-Federal interest before entering

into a local cooperation agreement with the Secretary for a

project. The credit for the design work shall not exceed 6

percent of the local construction costs of the project.

(C) CREDIT FOR INTEREST.—In case of a delay in the

funding of the non-Federal share of the costs of a project

that is the subject of an agreement under this subsection,

the non-Federal interest shall receive credit for reasonable

interest incurred in providing the non-Federal share of the

project’s costs.

(D) LAND, EASEMENTS, AND RIGHTS-OF-WAY CREDIT.—

The non-Federal interest shall receive credit for land, easements, rights-of-way, and reductions toward the non-Federal share of project costs (including all reasonable costs

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struction, operation, and maintenance of the project on publicly owned or controlled land), but not to exceed 25 percent

of the total project costs.

(E) OPERATION AND MAINTENANCE.—The non-Federal

share of operation and maintenance costs for projects constructed with assistance provided under this section shall

be 100 percent.

(f) APPLICABILITY OF OTHER FEDERAL AND STATE LAWS.—Nothing in this section waives, limits, or otherwise affects the applicability of any provision of Federal or State law that would otherwise

apply to a project to be carried out with assistance provided under

this section.

(g) REPORT.—Not later than December 31, 2001, the Secretary

shall transmit to Congress a report on the results of the pilot program carried out under this section, including recommendations

concerning whether the program should be implemented on a national basis.

(h) AUTHORIZATION OF APPROPRIATIONS.—There is authorized

to be appropriated to carry out this section $40,000,000. Such sums

shall remain available until expended.

TITLE II—VIETNAM EDUCATION FOUNDATION ACT OF 2000

SECTION 201. SHORT TITLE.

This title may be cited as the ‘‘Vietnam Education Foundation

Act of 2000’’.

SEC. 202. PURPOSES.

The purposes of this title are the following:

(1) To establish an international fellowship program under

which—

(A) Vietnamese nationals can undertake graduate and

post-graduate level studies in the sciences (natural, physical, and environmental), mathematics, medicine, and technology (including information technology); and

(B) United States citizens can teach in the fields specified in subparagraph (A) in appropriate Vietnamese institutions.

(2) To further the process of reconciliation between the

United States and Vietnam and the building of a bilateral relationship serving the interests of both countries.

SEC. 203. DEFINITIONS.

In this title:

(1) BOARD.—The term ‘‘Board’’ means the Board of Directors of the Foundation.

(2) FOUNDATION.—The term ‘‘Foundation’’ means the Vietnam Education Foundation established in section 204.

(3) INSTITUTION OF HIGHER EDUCATION.—The term ‘‘institution of higher education’’ has the meaning given the term in section 101(a) of the Higher Education Act of 1965 (20 U.S.C.

1001(a)).

(4) UNITED STATES-VIETNAM DEBT AGREEMENT.—The term

‘‘United States-Vietnam debt agreement’’ means the Agreement

Between the Government of the United States of America and

the Government of the Socialist Republic of Vietnam Regarding

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the Consolidation and Rescheduling of Certain Debts Owed to,

Guaranteed by, or Insured by the United States Government

and the Agency for International Development, dated April 7,

1997.

SEC. 204. ESTABLISHMENT.

There is established the Vietnam Education Foundation as an

independent establishment of the executive branch under section 104

of title 5, United States Code.

SEC. 205. BOARD OF DIRECTORS.

(a) IN GENERAL.—The Foundation shall be subject to the supervision and direction of the Board of Directors, which shall consist

of 13 members, as follows:

(1) Two members of the House of Representatives appointed

by the Speaker of the House of Representatives, one of whom

shall be appointed upon the recommendation of the Majority

Leader and one of whom shall be appointed upon the recommendation of the Minority Leader, and who shall serve as ex

officio, nonvoting members.

(2) Two members of the Senate, appointed by the President

pro tempore, one of whom shall be appointed upon the recommendation of the Majority Leader and one of whom shall be

appointed upon the recommendation of the Minority Leader,

and who shall serve as ex officio, nonvoting members.

(3) Secretary of State.

(4) Secretary of Education.

(5) Secretary of Treasury.

(6) Six members to be appointed by the President from

among individuals in the nongovernmental sector who have

academic excellence or experience in the fields of concentration

specified in section 202(1)(A) or a general knowledge of Vietnam, not less than three of whom shall be drawn from academic life.

(b) ROTATION OF MEMBERSHIP.—(1) The term of office of each

member appointed under subsection (a)(6) shall be 3 years, except

that of the members initially appointed under that subsection, two

shall serve for terms of one year, two shall serve for terms of two

years, and two shall serve for terms of three years.

(2) A member of Congress appointed under subsection (a)(1) or

(2) shall not serve as a member of the Board for more than a total

of six years.

(c) CHAIR.—The Board shall elect one of the members appointed

under subsection (a)(6) to serve as Chair.

(d) MEETINGS.—The Board shall meet upon the call of the

Chair but not less frequently than twice each year. A majority of the

voting members of the Board shall constitute a quorum.

(e) DUTIES.—The Board shall—

(1) select the individuals who will be eligible to serve as

Fellows; and

(2) provide overall supervision and direction of the Foundation.

(f) COMPENSATION.—

(1) IN GENERAL.—Except as provided in paragraph (2),

each member of the Board shall serve without compensation,

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and members who are officers or employees of the United States

shall serve without compensation in addition to that received

for their services as officers or employees of the United States.

(2) TRAVEL EXPENSES.—The members of the Board shall be

allowed travel expenses, including per diem in lieu of subsistence, at rates authorized for employees of agencies under subchapter I of chapter 57 of title 5, United States Code, while

away from their homes or regular places of business in the performance of service for the Board.

SEC. 206. FELLOWSHIP PROGRAM.

(a) AWARD OF FELLOWSHIPS.— (1) IN GENERAL.—To carry out the purposes of this title, the

Foundation shall award fellowships to—

(A) Vietnamese nationals to study at institutions of

higher education in the United States at graduate and

post-graduate levels in the following fields: physical

sciences, natural sciences, mathematics, environmental

sciences, medicine, technology, and computer sciences; and

(B) United States citizens to teach in Vietnam in appropriate Vietnamese institutions in the fields of study described in subparagraph (A).

(2) SPECIAL EMPHASIS ON SCIENTIFIC AND TECHNICAL VO- CABULARY 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.—

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(A) AUTHORIZATION OF APPROPRIATIONS.—There are

authorized to be appropriated to the Foundation $5,000,000

for fiscal year 2001 to carry out the activities of the Foundation.

(B) AVAILABILITY OF FUNDS.—Amounts appropriated

pursuant to subparagraph (A) are authorized to remain

available until expended.

(2) FISCAL YEAR 2002 AND SUBSEQUENT FISCAL YEARS.—Effective October 1, 2001, the Foundation shall utilize funds

transferred to the Foundation under section 207.

SEC. 207. VIETNAM DEBT REPAYMENT FUND.

(a) ESTABLISHMENT.—Notwithstanding any other provision of

law, there is established in the Treasury a separate account which

shall be known as the Vietnam Debt Repayment Fund (in this subsection referred to as the ‘‘Fund’’).

(b) DEPOSITS.—There shall be deposited as offsetting receipts

into the Fund all payments (including interest payments) made by

the Socialist Republic of Vietnam under the United States-Vietnam

debt agreement.

(c) AVAILABILITY OF THE FUNDS.—

(1) FISCAL YEAR LIMITATION.—Beginning with fiscal year

2002, and each subsequent fiscal year through fiscal year 2018,

$5,000,000 of the amounts deposited into the Fund (or accrued

interest) each fiscal year shall be available to the Foundation,

without fiscal year limitation, under paragraph (2).

(2) DISBURSEMENT OF FUNDS.—The Secretary of the Treasury, at least on a quarterly basis, shall transfer to the Foundation amounts allotted to the Foundation under paragraph (1)

for the purpose of carrying out its activities.

(3) TRANSFER OF EXCESS FUNDS TO MISCELLANEOUS RECEIPTS.—Beginning with fiscal year 2002, and each subsequent

fiscal year through fiscal year 2018, the Secretary of the Treasury shall withdraw from the Fund and deposit in the Treasury

of the United States as miscellaneous receipts all moneys in the

Fund in excess of amounts made available to the Foundation

under paragraph (1).

(d) ANNUAL REPORT.—The Board shall prepare and submit annually to Congress statements of financial condition of the Fund, including the beginning balance, receipts, refunds to appropriations,

transfers to the general fund, and the ending balance.

SEC. 208. FOUNDATION PERSONNEL MATTERS.

(a) APPOINTMENT BY BOARD.—There shall be an Executive Secretary of the Foundation who shall be appointed by the Board without regard to the provisions of title 5, United States Code, or any

regulation thereunder, governing appointment in the competitive

service. The Executive Director shall be the Chief Executive Officer

of the Foundation and shall carry out the functions of the Foundation subject to the supervision and direction of the Board. The Executive Director shall carry out such other functions consistent with

the provisions of this title as the Board shall prescribe. The decision

to employ or terminate an Executive Director shall be made by an

affirmative vote of at least 6 of the 9 voting members of the Board.

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(b) PROFESSIONAL STAFF.—The Executive Director shall hire

Foundation staff on the basis of professional and nonpartisan qualifications.

(c) EXPERTS AND CONSULTANTS.—The Executive Director may

procure temporary and intermittent services of experts and consultants as are necessary to the extent authorized by section 3109 of title

5, United States Code to carry out the purposes of the Foundation.

(d) COMPENSATION.—The Board may fix the compensation of

the Executive Director and other personnel without regard to the

provisions of chapter 51 and subchapter III of chapter 53 of title V,

United States Code, relating to classification of positions and General Schedule pay rates, except that the rate of pay for the Executive

Director and other personnel may not exceed the rate payable for

level V of the Executive Schedule under section 5316 of such title.

SEC. 209. ADMINISTRATIVE PROVISIONS.

(a) IN GENERAL.—In order to carry out this title, the Foundation may—

(1) prescribe such regulations as it considers necessary governing the manner in which its functions shall be carried out;

(2) receive money and other property donated, bequeathed,

or devised, without condition or restriction other than it be used

for the purposes of the Foundation, and to use, sell, or otherwise

dispose of such property for the purpose of carrying out its functions;

(3) accept and use the services of voluntary and noncompensated personnel;

(4) enter into contracts or other arrangements, or make

grants, to carry out the provisions of this title, and enter into

such contracts or other arrangements, or make such grants,

with the concurrence of a majority of the members of the Board,

without performance or other bonds and without regard to section 3709 of the Revised Statutes (41 U.S.C. 5);

(5) rent office space in the District of Columbia; and

(6) make other necessary expenditures.

(b) ANNUAL REPORT.—The Foundation shall submit to the

President and to the Committee on Foreign Relations of the Senate

and the Committee on International Relations of the House of Representatives an annual report of its operations under this title.

SEC. 210. TERMINATION.

(a) IN GENERAL.—The Foundation may not award any new fellowship, or extend any existing fellowship, after September 30, 2016.

(b) ABOLISHMENT.—Effective 120 days after the expiration of

the last fellowship in effect under this title, the Foundation is abolished.

TITLE III—COLORADO UTE SETTLEMENT ACT

AMENDMENTS OF 2000

SECTION 301. SHORT TITLE; FINDINGS; DEFINITIONS.

(a) SHORT TITLE.—This title may be cited as the ‘‘Colorado Ute

Settlement Act Amendments of 2000’’.

(b) FINDINGS.—Congress makes the following findings:

(1) In order to provide for a full and final settlement of the

claims of the Colorado Ute Indian Tribes on the Animas and

502

La Plata Rivers, the Tribes, the State of Colorado, and certain

of the non-Indian parties to the Agreement have proposed certain modifications to the Colorado Ute Indian Water Rights

Settlement Act of 1988 (Public Law 100–585; 102 Stat. 2973).

(2) The claims of the Colorado Ute Indian Tribes on all rivers in Colorado other than the Animas and La Plata Rivers

have been settled in accordance with the provisions of the Colorado Ute Indian Water Rights Settlement Act of 1988 (Public

Law 100–585; 102 Stat. 2973).

(3) The Indian and non-Indian communities of southwest

Colorado and northwest New Mexico will be benefited by a settlement of the tribal claims on the Animas and La Plata Rivers

that provides the Tribes with a firm water supply without taking water away from existing uses.

(4) The Agreement contemplated a specific timetable for the

delivery of irrigation and municipal and industrial water and

other benefits to the Tribes from the Animas-La Plata Project,

which timetable has not been met. The provision of irrigation

water can not presently be satisfied under the current implementation of the Federal Water Pollution Control Act (33

U.S.C. 1251 et seq.) and the Endangered Species Act of 1973

(16 U.S.C. 1531 et seq.).

(5) In order to meet the requirements of the Endangered

Species Act of 1973 (16 U.S.C. 1531 et seq.), and in particular

the various biological opinions issued by the Fish and Wildlife

Service, the amendments made by this title are needed to provide for a significant reduction in the facilities and water supply contemplated under the Agreement.

(6) The substitute benefits provided to the Tribes under the

amendments made by this title, including the waiver of capital

costs and the provisions of funds for natural resource enhancement, result in a settlement that provides the Tribes with benefits that are equivalent to those that the Tribes would have received under the Colorado Ute Indian Water Rights Settlement

Act of 1988 (Public Law 100–585; 102 Stat. 2973).

(7) The requirement that the Secretary of the Interior comply with the National Environmental Policy Act of 1969 (42

U.S.C. 4321 et seq.) and other national environmental laws before implementing the proposed settlement will ensure that the

satisfaction of the tribal water rights is accomplished in an environmentally responsible fashion.

(8) In considering the full range of alternatives for satisfying the water rights claims of the Southern Ute Indian Tribe

and Ute Mountain Ute Indian Tribe, Congress has held numerous legislative hearings and deliberations, and reviewed the

considerable record including the following documents:

(A) The Final EIS No. INT–FES–80–18, dated July 1,

1980.

(B) The Draft Supplement to the FES No. INT–DES–

92–41, dated October 13, 1992.

(C) The Final Supplemental to the FES No. 96–23,

dated April 26, 1996;

(D) The Draft Supplemental EIS, dated January 14,

2000.

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(E) The Final Supplemental EIS, dated July 2000.

(F) The Record of Decision for the Settlement of the

Colorado Ute Indian Waters, September 25, 2000.

(9) In the Record of Decision referred to in paragraph

(8)(F), the Secretary determined that the preferred alternative

could only proceed if Congress amended the Colorado Ute Indian Water Rights Settlement Act of 1988 (Public Law 100–585;

102 Stat. 2973) so as to satisfy the Tribal water rights claim

through the construction of the features authorized by this title.

The amendments to the Colorado Ute Indian Water Rights Settlement Act of 1988 set forth in this title will provide the Ute

Tribes with substitute benefits equivalent to those that the

Tribes would have received under the Colorado Ute Indian

Water Rights Settlement Act of 1988, in a manner consistent

with paragraph (8) and the Federal Government’s trust obligation.

(10) Based upon paragraph (8), it is the intent of Congress

to enact legislation that implements the Record of Decision referred to in paragraph (8)(F).

(c) DEFINITIONS.—In this title:

(1) AGREEMENT.—The term ‘‘Agreement’’ has the meaning

given that term in section 3(1) of the Colorado Ute Indian

Water Rights Settlement Act of 1988 (Public Law 100–585; 102

Stat. 2973).

(2) ANIMAS-LA PLATA PROJECT.—The term ‘‘Animas-La

Plata Project’’ has the meaning given that term in section 3(2)

of the Colorado Ute Indian Water Rights Settlement Act of 1988

(Public Law 100–585; 102 Stat. 2973).

(3) DOLORES PROJECT.—The term ‘‘Dolores Project’’ has the

meaning given that term in section 3(3) of the Colorado Ute Indian Water Rights Settlement Act of 1988 (Public Law 100–585;

102 Stat. 2974).

(4) TRIBE; TRIBES.—The term ‘‘Tribe’’ or ‘‘Tribes’’ has the

meaning given that term in section 3(6) of the Colorado Ute Indian Water Rights Settlement Act of 1988 (Public Law 100–585;

102 Stat. 2974).

SEC. 302. AMENDMENTS TO SECTION 6 OF THE COLORADO UTE INDIAN

WATER RIGHTS SETTLEMENT ACT OF 1988.

Subsection (a) of section 6 of the Colorado Ute Indian Water

Rights Settlement Act of 1988 (Public Law 100–585; 102 Stat. 2975)

is amended to read as follows:

‘‘(a) RESERVOIR; MUNICIPAL AND INDUSTRIAL WATER.—

‘‘(1) FACILITIES.—

‘‘(A) IN GENERAL.—After the date of enactment of this

subsection, but prior to January 1, 2005, or the date established in the Amended Final Decree described in section

18(c), the Secretary, in order to settle the outstanding

claims of the Tribes on the Animas and La Plata Rivers,

acting through the Bureau of Reclamation, is specifically

authorized to—

‘‘(i) complete construction of, and operate and

maintain, a reservoir, a pumping plant, a reservoir

inlet conduit, and appurtenant facilities with sufficient

capacity to divert and store water from the Animas

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River to provide for an average annual depletion of

57,100 acre-feet of water to be used for a municipal

and industrial water supply, which facilities shall—

‘‘(I) be designed and operated in accordance

with the hydrologic regime necessary for the recovery of the endangered fish of the San Juan River

as determined by the San Juan River Recovery Implementation Program;

‘‘(II) be operated in accordance with the

Animas-La Plata Project Compact as approved by

Congress in Public Law 90-537;

‘‘(III) include an inactive pool of an appropriate size to be determined by the Secretary following the completion of required environmental

compliance activities; and

‘‘(IV) include those recreation facilities determined to be appropriate by agreement between the

State of Colorado and the Secretary that shall address the payment of any of the costs of such facilities by the State of Colorado in addition to the

costs described in paragraph (3); and

‘‘(ii) deliver, through the use of the project components referred to in clause (i), municipal and industrial

water allocations—

‘‘(I) with an average annual depletion not to

exceed 16,525 acre-feet of water, to the Southern

Ute Indian Tribe for its present and future needs;

‘‘(II) with an average annual depletion not to

exceed 16,525 acre-feet of water, to the Ute Mountain Ute Indian Tribe for its present and future

needs;

‘‘(III) with an average annual depletion not to

exceed 2,340 acre-feet of water, to the Navajo Nation for its present and future needs;

‘‘(IV) with an average annual depletion not to

exceed 10,400 acre-feet of water, to the San Juan

Water Commission for its present and future

needs;

‘‘(V) with an average annual depletion of an

amount not to exceed 2,600 acre-feet of water, to

the Animas-La Plata Conservancy District for its

present and future needs;

‘‘(VI) with an average annual depletion of an

amount not to exceed 5,230 acre-feet of water, to

the State of Colorado for its present and future

needs; and

‘‘(VII) with an average annual depletion of an

amount not to exceed 780 acre-feet of water, to the

La Plata Conservancy District of New Mexico for

its present and future needs.

‘‘(B) APPLICABILITY OF OTHER FEDERAL LAW.—The responsibilities of the Secretary described in subparagraph

(A) are subject to the requirements of Federal laws related

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ble to the construction of the proposed facilities, including

the National Environmental Policy Act of 1969 (42 U.S.C.

4321 et seq.), the Clean Water Act (42 U.S.C. 7401 et seq.),

and the Endangered Species Act of 1973 (16 U.S.C. 1531

et seq.). Nothing in this Act shall be construed to predetermine or otherwise affect the outcome of any analysis conducted by the Secretary or any other Federal official under

applicable laws.

‘‘(C) LIMITATION.— ‘‘(i) IN GENERAL.—If constructed, the facilities described in subparagraph (A) shall constitute the

Animas-La Plata Project. Construction of any other

project features authorized by Public Law 90-537 shall

not be commenced without further express authorization from Congress.

‘‘(ii) CONTINGENCY IN APPLICATION.—If the facilities described in subparagraph (A) are not constructed

and operated, clause (i) shall not take effect.

‘‘(2) TRIBAL CONSTRUCTION COSTS.—Construction costs allocable to the facilities that are required to deliver the municipal

and industrial water allocations described in subclauses (I), (II)

and (III) of paragraph (1)(A)(ii) shall be nonreimbursable to the

United States.

‘‘(3) NONTRIBAL WATER CAPITAL OBLIGATIONS.— ‘‘(A) IN GENERAL.—Under the provisions of section 9 of

the Act of August 4, 1939 (43 U.S.C. 485h), the nontribal

municipal and industrial water capital repayment obligations for the facilities described in paragraph (1)(A)(i) may

be satisfied upon the payment in full of the nontribal water

capital obligations prior to the initiation of construction.

The amount of the obligations described in the preceding

sentence shall be determined by agreement between the Secretary of the Interior and the entity responsible for such repayment as to the appropriate reimbursable share of the

construction costs allocated to that entity’s municipal water

storage. Such repayment shall be consistent with Federal

reclamation law, including the Colorado River Storage

Project Act of 1956 (43 U.S.C. 620 et seq.). Such agreement

shall take into account the fact that the construction of certain project facilities, including those facilities required to

provide irrigation water supplies from the Animas-La Plata

Project, is not authorized under paragraph (1)(A)(i) and no

costs associated with the design or development of such facilities, including costs associated with environmental compliance, shall be allocable to the municipal and industrial

users of the facilities authorized under such paragraph.

‘‘(B) NONTRIBAL REPAYMENT OBLIGATION SUBJECT TO

FINAL COST ALLOCATION.—The nontribal repayment obligation set forth in subparagraph (A) shall be subject to a

final cost allocation by the Secretary upon project completion. In the event that the final cost allocation indicates

that additional repayment is warranted based on the applicable entity’s share of project water storage and determination of overall reimbursable cost, that entity may elect to

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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 costshare agreements contemplated in subparagraph (A). In the

event that no agreement is reached with either the AnimasLa Plata Conservancy District or the State of Colorado for

the water allocations set forth in subclauses (V) and (VI) of

paragraph (1)(A)(ii), those allocations shall be reallocated

equally to the Colorado Ute Tribes.

‘‘(4) TRIBAL WATER ALLOCATIONS.—

‘‘(A) IN GENERAL.—With respect to municipal and industrial water allocated to a Tribe from the Animas-La

Plata Project or the Dolores Project, until that water is first

used by a Tribe or used pursuant to a water use contract

with the Tribe, the Secretary shall pay the annual operation, maintenance, and replacement costs allocable to that

municipal and industrial water allocation of the Tribe.

‘‘(B) TREATMENT OF COSTS.—A Tribe shall not be required to reimburse the Secretary for the payment of any

cost referred to in subparagraph (A).

‘‘(5) REPAYMENT OF PRO RATA SHARE.—Upon a Tribe’s first

use of an increment of a municipal and industrial water allocation described in paragraph (4), or the Tribe’s first use of such

water pursuant to the terms of a water use contract—

‘‘(A) repayment of that increment’s pro rata share of

those allocable construction costs for the Dolores Project

shall be made by the Tribe; and

‘‘(B) the Tribe shall bear a pro rata share of the allocable annual operation, maintenance, and replacement

costs of the increment as referred to in paragraph (4).’’.

SEC. 303. MISCELLANEOUS.

The Colorado Ute Indian Water Rights Settlement Act of 1988

(Public Law 100–585; 102 Stat. 2973) is amended by adding at the

end the following:

‘‘SEC. 15. NEW MEXICO AND NAVAJO NATION WATER

MATTERS.

‘‘(a) ASSIGNMENT OF WATER PERMIT.—Upon the request of the

State Engineer of the State of New Mexico, the Secretary shall, as

soon as practicable, in a manner consistent with applicable law, assign, without consideration, to the New Mexico Animas-La Plata

Project beneficiaries or to the New Mexico Interstate Stream Commission in accordance with the request of the State Engineer, the

Department of the Interior’s interest in New Mexico State Engineer

Permit Number 2883, dated May 1, 1956, in order to fulfill the New

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Mexico non-Navajo purposes of the Animas-La Plata Project, so long

as the permit assignment does not affect the application of the Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.) to the use of

the water involved.

‘‘(b) NAVAJO NATION MUNICIPAL PIPELINE.—The Secretary is

specifically authorized to construct a water line to augment the existing system that conveys the municipal water supplies, in an

amount not less than 4,680 acre-feet per year, to the Navajo Indian

Reservation at or near Shiprock, New Mexico. The Secretary shall

comply with all applicable environmental laws with respect to such

water line. Construction costs allocated to the Navajo Nation for

such water line shall be nonreimbursable to the United States.

‘‘(c) PROTECTION OF NAVAJO WATER CLAIMS.—Nothing in this

Act, including the permit assignment authorized by subsection (a),

shall be construed to quantify or otherwise adversely affect the

water rights and the claims of entitlement to water of the Navajo

Nation.

‘‘SEC. 16. RESOURCE FUNDS.

‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—There is authorized

to be appropriated to carry out this section, $8,000,000 for each of

fiscal years 2002 through 2006. Not later than 60 days after

amounts are appropriated and available to the Secretary for a fiscal

year under this paragraph, the Secretary shall make a payment to

each of the Tribal Resource Funds established under subsection (b).

Each such payment shall be equal to 50 percent of the amount appropriated for the fiscal year involved.

‘‘(b) FUNDS.—The Secretary shall establish a—

‘‘(1) Southern Ute Tribal Resource Fund; and

‘‘(2) Ute Mountain Ute Tribal Resource Fund.

‘‘(c) TRIBAL DEVELOPMENT.— ‘‘(1) INVESTMENT.—The Secretary shall, in the absence of

an approved tribal investment plan provided for under paragraph (2), invest the amount in each Tribal Resource Fund established under subsection (b) in accordance with the Act entitled, ‘An Act to authorize the deposit and investment of Indian

funds’ approved June 24, 1938 (25 U.S.C. 162a). With the exception of the funds referred to in paragraph (3)(B)(i), the Secretary shall disburse, at the request of a Tribe, the principal

and income in its Resource Fund, or any part thereof, in accordance with a resource acquisition and enhancement plan approved under paragraph (3).

‘‘(2) INVESTMENT PLAN.—

‘‘(A) IN GENERAL.—In lieu of the investment provided

for in paragraph (1), a Tribe may submit a tribal investment plan applicable to all or part of the Tribe’s Tribal Resource Fund, except with respect to the funds referred to in

paragraph (3)(B)(i).

‘‘(B) APPROVAL.—Not later than 60 days after the date

on which an investment plan is submitted under subparagraph (A), the Secretary shall approve such investment

plan if the Secretary finds that the plan is reasonable and

sound. If the Secretary does not approve such investment

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ment plan is approved by the Secretary, the Tribal Resource Fund involved shall be disbursed to the Tribe to be

invested by the Tribe in accordance with the approved investment plan, subject to subsection (d).

‘‘(C) COMPLIANCE.—The Secretary may take such steps

as the Secretary determines to be necessary to monitor the

compliance of a Tribe with an investment plan approved

under subparagraph (B). The United States shall not be responsible for the review, approval, or audit of any individual investment under the plan. The United States shall

not be directly or indirectly liable with respect to any such

investment, including any act or omission of the Tribe in

managing or investing such funds.

‘‘(D) ECONOMIC DEVELOPMENT PLAN.—The principal

and income derived from tribal investments under an investment plan approved under subparagraph (B) shall be

subject to the provisions of this section and shall be expended only in accordance with an economic development

plan approved under paragraph (3)(B).

‘‘(3) ECONOMIC DEVELOPMENT PLAN.—

‘‘(A) IN GENERAL.—Each Tribe shall submit to the Secretary a resource acquisition and enhancement plan for all

or any portion of its Tribal Resource Fund.

‘‘(B) APPROVAL.—Not later than 60 days after the date

on which a plan is submitted under subparagraph (A), the

Secretary shall approve such plan if it is consistent with

the following requirements:

‘‘(i) With respect to at least 3⁄4 of the funds appropriated pursuant to this section and consistent with the

long-standing practice of the Tribes and other local entities and communities to work together to use their respective water rights and resources for mutual benefit,

at least 3⁄4 of the funds appropriated pursuant to this

section shall be utilized to enhance, restore, and utilize

the Tribes’ natural resources in partnership with adjacent non-Indian communities or entities in the area.

‘‘(ii) The plan must be reasonably related to the

protection, acquisition, enhancement, or development of

natural resources for the benefit of the Tribe and its

members.

‘‘(iii) Notwithstanding any other provision of law

and in order to ensure that the Federal Government

fulfills the objectives of the Record of Decision referred

to in section 301(b)(8)(F) of the Colorado Ute Settlement Act Amendments of 2000 by requiring that the

funds referred to in clause (i) are expended directly by

employees of the Federal Government, the Secretary

acting through the Bureau of Reclamation shall expend

not less than 1⁄3 of the funds referred to in clause (i)

for municipal or rural water development and not less

than 2⁄3 of the funds referred to such clause for resource

acquisition and enhancement.

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‘‘(C) MODIFICATION.—Subject to the provisions of this

Act and the approval of the Secretary, each Tribe may modify a plan approved under subparagraph (B).

‘‘(D) LIABILITY.—The United States shall not be directly or indirectly liable for any claim or cause of action

arising from the approval of a plan under this paragraph,

or from the use and expenditure by the Tribe of the principal or interest of the Funds.

‘‘(d) LIMITATION ON PER CAPITA DISTRIBUTIONS.—No part of

the principal contained in the Tribal Resource Fund, or of the income accruing to such funds, or the revenue from any water use contract, shall be distributed to any member of either Tribe on a per

capita basis.

‘‘(e) LIMITATION ON SETTING ASIDE FINAL CONSENT DECREE.—

Neither the Tribes nor the United States shall have the right to set

aside the final consent decree solely because the requirements of subsection (c) are not complied with or implemented.

‘‘(f) LIMITATION ON DISBURSEMENT OF TRIBAL RESOURCE

FUNDS.—Any funds appropriated under this section shall be placed

into the Southern Ute Tribal Resource Fund and the Ute Mountain

Ute Tribal Resource Fund in the Treasury of the United States but

shall not be available for disbursement under this section until the

final settlement of the tribal claims as provided in section 18. The

Secretary of the Interior may, in the Secretary’s sole discretion, authorize the disbursement of funds prior to the final settlement in the

event that the Secretary determines that substantial portions of the

settlement have been completed. In the event that the funds are not

disbursed under the terms of this section by December 31, 2012,

such funds shall be deposited in the general fund of the Treasury.

‘‘SEC. 17. COLORADO UTE SETTLEMENT FUND.

‘‘(a) ESTABLISHMENT OF FUND.—There is hereby established

within the Treasury of the United States a fund to be known as the

‘Colorado Ute Settlement Fund’.

‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—There is authorized

to be appropriated to the Colorado Ute Settlement Fund such funds

as are necessary to complete the construction of the facilities described in sections 6(a)(1)(A) and 15(b) within 7 years of the date

of enactment of this section. Such funds are authorized to be appropriated for each of the first 5 fiscal years beginning with the first

full fiscal year following the date of enactment of this section.

‘‘SEC. 18. FINAL SETTLEMENT.

‘‘(a) IN GENERAL.—The construction of the facilities described in

section 6(a)(1)(A), the allocation of the water supply from those facilities to the Tribes as described in that section, and the provision

of funds to the Tribes in accordance with section 16 and the

issuance of an amended final consent decree as contemplated in

subsection (c) shall constitute final settlement of the tribal claims to

water rights on the Animas and La Plata Rivers in the State of Colorado.

‘‘(b) STATUTORY CONSTRUCTION.—Nothing in this section shall

be construed to affect the right of the Tribes to water rights on the

streams and rivers described in the Agreement, other than the

Animas and La Plata Rivers, to receive the amounts of water dediVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00513 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.004 pfrm03 PsN: HR1033
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cated to tribal use under the Agreement, or to acquire water rights

under the laws of the State of Colorado.

‘‘(c) ACTION BY THE ATTORNEY GENERAL.—The Attorney General

shall file with the District Court, Water Division Number 7, of the

State of Colorado, such instruments as may be necessary to request

the court to amend the final consent decree to provide for the

amendments made to this Act under the Colorado Ute Indian Water

Rights Settlement Act Amendments of 2000. The amended final consent decree shall specify terms and conditions to provide for an extension of the current January 1, 2005, deadline for the Tribes to

commence litigation of their reserved rights claims on the Animas

and La Plata Rivers.

‘‘SEC. 19. STATUTORY CONSTRUCTION; TREATMENT OF CERTAIN

FUNDS.

‘‘(a) IN GENERAL.—Nothing in the amendments made by the

Colorado Ute Settlement Act Amendments of 2000 shall be construed to affect the applicability of any provision of this Act.

‘‘(b) TREATMENT OF UNCOMMITTED PORTION OF COST-SHARING

OBLIGATION.—The uncommitted portion of the cost-sharing obligation of the State of Colorado referred to in section 6(a)(3) shall be

made available, upon the request of the State of Colorado, to the

State of Colorado after the date on which payment is made of the

amount specified in that section.’’.

TITLE IV

SECTION 401. DESIGNATION OF AMERICAN MUSEUM OF SCIENCE AND

ENERGY.

(a) IN GENERAL.—The Museum—

(1) is designated as the ‘‘American Museum of Science and

Energy’’; and

(2) shall be the official museum of science and energy of the

United States.

(b) REFERENCES.—Any reference in a law, map, regulation, document, paper, or other record of the United States to the Museum

is deemed to be a reference to the ‘‘American Museum of Science and

Energy’’.

(c) PROPERTY OF THE UNITED STATES.—

(1) IN GENERAL.—The name ‘‘American Museum of Science

and Energy’’ is declared the property of the United States.

(2) USE.—The Museum shall have the sole right throughout

the United States and its possessions to have and use the name

‘‘American Museum of Science and Energy’’.

(3) EFFECT ON OTHER RIGHTS.—This subsection shall not be

construed to conflict or interfere with established or vested

rights.

SEC. 402. AUTHORITY.

To carry out the activities of the Museum, the Secretary may—

(1) accept and dispose of any gift, devise, or bequest of services or property, real or personal, that is—

(A) designated in a written document by the person

making the gift, devise, or bequest as intended for the Museum; and

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(B) determined by the Secretary to be suitable and beneficial for use by the Museum;

(2) operate a retail outlet on the premises of the Museum

for the purpose of selling or distributing items (including mementos, food, educational materials, replicas, and literature)

that are—

(A) relevant to the contents of the Museum; and

(B) informative, educational, and tasteful;

(3) collect reasonable fees where feasible and appropriate;

(4) exhibit, perform, display, and publish materials and information of or relating to the Museum in any media or place;

(5) consistent with guidelines approved by the Secretary,

lease space on the premises of the Museum at reasonable rates

and for uses consistent with such guidelines; and

(6) use the proceeds of activities authorized under this section to pay the costs of the Museum.

SEC. 403. MUSEUM VOLUNTEERS.

(a) AUTHORITY TO USE VOLUNTEERS.—The Secretary may recruit, train, and accept the services of individuals or entities as volunteers for services or activities related to the Museum.

(b) STATUS OF VOLUNTEERS.—

(1) IN GENERAL.—Except as provided in paragraph (2),

service by a volunteer under subsection (a) shall not be considered Federal employment.

(2) EXCEPTIONS.—

(A) FEDERAL TORT CLAIMS ACT.—For purposes of chapter 171 of title 28, United States Code, a volunteer under

subsection (a) shall be treated as an employee of the Government (as defined in section 2671 of that title).

(B) COMPENSATION FOR WORK INJURIES.—For purposes

of subchapter I of chapter 81 of title 5, United States Code,

a volunteer described in subsection (a) shall be treated as

an employee (as defined in section 8101 of title 5, United

States Code).

(c) COMPENSATION.—A volunteer under subsection (a) shall

serve without pay, but may receive nominal awards and reimbursement for incidental expenses, including expenses for a uniform or

transportation in furtherance of Museum activities.

SEC. 404. DEFINITIONS.

For purposes of this Act:

(1) MUSEUM.—The term ‘‘Museum’’ means the museum operated by the Secretary of Energy and located at 300 South

Tulane Avenue in Oak Ridge, Tennessee.

(2) SECRETARY.—The term ‘‘Secretary’’ means the Secretary

of Energy or a designated representative of the Secretary.

TITLE V—LOWER MISSISSIPPI RIVER REGION

SEC. 501. SHORT TITLE.

This title may be cited as the ‘‘Delta Regional Authority Act of

2000’’.

SEC. 502. FINDINGS AND PURPOSES.

(a) FINDINGS.—Congress finds that—

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(1) the lower Mississippi River region (referred to in this

title as the ‘‘region’’), though rich in natural and human resources, lags behind the rest of the United States in economic

growth and prosperity;

(2) the region suffers from a greater proportion of measurable poverty and unemployment than any other region of the

United States;

(3) the greatest hope for economic growth and revitalization

in the region lies in the development of transportation infrastructure, creation of jobs, expansion of businesses, and development of entrepreneurial local economies;

(4) the economic progress of the region requires an adequate

transportation and physical infrastructure, a skilled and

trained workforce, and greater opportunities for enterprise development and entrepreneurship;

(5) a concerted and coordinated effort among Federal,

State, and local agencies, the private sector, and nonprofit

groups is needed if the region is to achieve its full potential for

economic development;

(6) economic development planning on a regional or multicounty basis offers the best prospect for achieving the maximum

benefit from public and private investments; and

(7) improving the economy of the region requires a special

emphasis on areas of the region that are most economically distressed.

(b) PURPOSES.—The purposes of this title are—

(1) to promote and encourage the economic development of

the region—

(A) to ensure that the communities and people in the

region have the opportunity for economic development; and

(B) to ensure that the economy of the region reaches

economic parity with that of the rest of the United States;

(2) to establish a formal framework for joint Federal-State

collaboration in meeting and focusing national attention on the

economic development needs of the region;

(3) to assist the region in obtaining the transportation and

basic infrastructure, skills training, and opportunities for economic development that are essential for strong local economies;

(4) to foster coordination among all levels of government,

the private sector, and nonprofit groups in crafting common regional strategies that will lead to broader economic growth;

(5) to strengthen efforts that emphasize regional approaches

to economic development and planning;

(6) to encourage the participation of interested citizens,

public officials, agencies, and others in developing and implementing local and regional plans for broad-based economic and

community development; and

(7) to focus special attention on areas of the region that suffer from the greatest economic distress.

SEC. 503. DELTA REGIONAL AUTHORITY.

The Consolidated Farm and Rural Development Act (7 U.S.C.

1921 et seq.) is amended by adding at the end the following:

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‘‘Subtitle F—Delta Regional Authority

‘‘SEC. 382A. DEFINITIONS.

‘‘In this subtitle:

‘‘(1) AUTHORITY.—The term ‘Authority’ means the Delta Regional Authority established by section 382B.

‘‘(2) REGION.—The term ‘region’ means the Lower Mississippi (as defined in section 4 of the Delta Development Act

(42 U.S.C. 3121 note; Public Law 100–460)).

‘‘(3) FEDERAL GRANT PROGRAM.—The term ‘Federal grant

program’ means a Federal grant program to provide assistance

in—

‘‘(A) acquiring or developing land;

‘‘(B) constructing or equipping a highway, road, bridge,

or facility; or

‘‘(C) carrying out other economic development activities.

‘‘SEC. 382B. DELTA REGIONAL AUTHORITY.

‘‘(a) ESTABLISHMENT.— ‘‘(1) IN GENERAL.—There is established the Delta Regional

Authority.

‘‘(2) COMPOSITION.—The Authority shall be composed of—

‘‘(A) a Federal member, to be appointed by the President, with the advice and consent of the Senate; and

‘‘(B) the Governor (or a designee of the Governor) of

each State in the region that elects to participate in the Authority.

‘‘(3) COCHAIRPERSONS.—The Authority shall be headed by—

‘‘(A) the Federal member, who shall serve—

‘‘(i) as the Federal cochairperson; and

‘‘(ii) as a liaison between the Federal Government

and the Authority; and

‘‘(B) a State cochairperson, who—

‘‘(i) shall be a Governor of a participating State in

the region; and

‘‘(ii) shall be elected by the State members for a

term of not less than 1 year.

‘‘(b) ALTERNATE MEMBERS.—

‘‘(1) STATE ALTERNATES.—The State member of a participating State may have a single alternate, who shall be—

‘‘(A) a resident of that State; and

‘‘(B) appointed by the Governor of the State.

‘‘(2) ALTERNATE FEDERAL COCHAIRPERSON.—The President

shall appoint an alternate Federal cochairperson.

‘‘(3) QUORUM.—A State alternate shall not be counted toward the establishment of a quorum of the Authority in any instance in which a quorum of the State members is required to

be present.

‘‘(4) DELEGATION OF POWER.—No power or responsibility of

the Authority specified in paragraphs (2) and (3) of subsection

(c), and no voting right of any Authority member, shall be delegated to any person—

‘‘(A) who is not a Authority member; or

‘‘(B) who is not entitled to vote in Authority meetings.

‘‘(c) VOTING.—

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‘‘(1) IN GENERAL.—A decision by the Authority shall require

a majority vote of the Authority (not including any member representing a State that is delinquent under subsection (g)(2)(C))

to be effective.

‘‘(2) QUORUM.—A quorum of State members shall be required to be present for the Authority to make any policy decision, including—

‘‘(A) a modification or revision of a Authority policy decision;

‘‘(B) approval of a State or regional development plan;

and

‘‘(C) any allocation of funds among the States.

‘‘(3) PROJECT AND GRANT PROPOSALS.—The approval of

project and grant proposals shall be—

‘‘(A) a responsibility of the Authority; and

‘‘(B) conducted in accordance with section 382I.

‘‘(4) VOTING BY ALTERNATE MEMBERS.—An alternate member shall vote in the case of the absence, death, disability, removal, or resignation of the Federal or State representative for

which the alternate member is an alternate.

‘‘(d) DUTIES.—The Authority shall—

‘‘(1) develop, on a continuing basis, comprehensive and coordinated plans and programs to establish priorities and approve grants for the economic development of the region, giving

due consideration to other Federal, State, and local planning

and development activities in the region;

‘‘(2) not later than 220 days after the date of enactment of

this subtitle, establish priorities in a development plan for the

region (including 5-year regional outcome targets);

‘‘(3) assess the needs and assets of the region based on

available research, demonstrations, investigations, assessments,

and evaluations of the region prepared by Federal, State, and

local agencies, universities, local development districts, and

other nonprofit groups;

‘‘(4) formulate and recommend to the Governors and legislatures of States that participate in the Authority forms of interstate cooperation;

‘‘(5) work with State and local agencies in developing appropriate model legislation;

‘‘(6)(A) enhance the capacity of, and provide support for,

local development districts in the region; or

‘‘(B) if no local development district exists in an area in a

participating State in the region, foster the creation of a local

development district;

‘‘(7) encourage private investment in industrial, commercial, and other economic development projects in the region; and

‘‘(8) cooperate with and assist State governments with economic development programs of participating States.

‘‘(e) ADMINISTRATION.—In carrying out subsection (d), the Authority may—

‘‘(1) hold such hearings, sit and act at such times and

places, take such testimony, receive such evidence, and print or

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ceedings and reports on actions by the Authority as the Authority considers appropriate;

‘‘(2) authorize, through the Federal or State co-chairperson

or any other member of the Authority designated by the Authority, the administration of oaths if the Authority determines that

testimony should be taken or evidence received under oath; and

‘‘(3) request from any Federal, State, or local department or

agency such information as may be available to or procurable

by the department or agency that may be of use to the Authority

in carrying out duties of the Authority;

‘‘(4) adopt, amend, and repeal bylaws and rules governing

the conduct of Authority business and the performance of Authority duties;

‘‘(5) request the head of any Federal department or agency

to detail to the Authority such personnel as the Authority requires to carry out duties of the Authority, each such detail to

be without loss of seniority, pay, or other employee status;

‘‘(6) request the head of any State department or agency or

local government to detail to the Authority such personnel as

the Authority requires to carry out duties of the Authority, each

such detail to be without loss of seniority, pay, or other employee status;

‘‘(7) provide for coverage of Authority employees in a suitable retirement and employee benefit system by—

‘‘(A) making arrangements or entering into contracts

with any participating State government; or

‘‘(B) otherwise providing retirement and other employee

benefit coverage;

‘‘(8) accept, use, and dispose of gifts or donations of services

or real, personal, tangible, or intangible property;

‘‘(9) enter into and perform such contracts, leases, cooperative agreements, or other transactions as are necessary to carry

out Authority duties, including any contracts, leases, or cooperative agreements with—

‘‘(A) any department, agency, or instrumentality of the

United States;

‘‘(B) any State (including a political subdivision, agency, or instrumentality of the State); or

‘‘(C) any person, firm, association, or corporation; and

‘‘(10) establish and maintain a central office and field offices at such locations as the Authority may select.

‘‘(f) FEDERAL AGENCY COOPERATION.—A Federal agency shall—

‘‘(1) cooperate with the Authority; and

‘‘(2) provide, on request of the Federal cochairperson, appropriate assistance in carrying out this subtitle, in accordance

with applicable Federal laws (including regulations).

‘‘(g) ADMINISTRATIVE EXPENSES.—

‘‘(1) IN GENERAL.—Administrative expenses of the Authority

(except for the expenses of the Federal cochairperson, including

expenses of the alternate and staff of the Federal cochairperson,

which shall be paid solely by the Federal Government) shall be

paid—

‘‘(A) by the Federal Government, in an amount equal to

50 percent of the administrative expenses; and

516

‘‘(B) by the States in the region participating in the Authority, in an amount equal to 50 percent of the administrative expenses.

‘‘(2) STATE SHARE.— ‘‘(A) IN GENERAL.—The share of administrative expenses of the Authority to be paid by each State shall be determined by the Authority.

‘‘(B) NO FEDERAL PARTICIPATION.—The Federal cochairperson shall not participate or vote in any decision

under subparagraph (A).

‘‘(C) DELINQUENT STATES.—If a State is delinquent in

payment of the State’s share of administrative expenses of

the Authority under this subsection—

‘‘(i) no assistance under this subtitle shall be furnished to the State (including assistance to a political

subdivision or a resident of the State); and

‘‘(ii) no member of the Authority from the State

shall participate or vote in any action by the Authority.

‘‘(h) COMPENSATION.— ‘‘(1) FEDERAL COCHAIRPERSON.—The Federal cochairperson

shall be compensated by the Federal Government at level III of

the Executive Schedule in subchapter II of chapter 53 of title V,

United States Code.

‘‘(2) ALTERNATE FEDERAL COCHAIRPERSON.—The alternate

Federal cochairperson—

‘‘(A) shall be compensated by the Federal Government

at level V of the Executive Schedule described in paragraph

(1); and

‘‘(B) when not actively serving as an alternate for the

Federal cochairperson, shall perform such functions and

duties as are delegated by the Federal cochairperson.

‘‘(3) STATE MEMBERS AND ALTERNATES.— ‘‘(A) IN GENERAL.—A State shall compensate each

member and alternate representing the State on the Authority at the rate established by law of the State.

‘‘(B) NO ADDITIONAL COMPENSATION.—No State member or alternate member shall receive any salary, or any

contribution to or supplementation of salary from any

source other than the State for services provided by the

member or alternate to the Authority.

‘‘(4) DETAILED EMPLOYEES.—

‘‘(A) IN GENERAL.—No person detailed to serve the Authority under subsection (e)(6) shall receive any salary or

any contribution to or supplementation of salary for services provided to the Authority from—

‘‘(i) any source other than the State, local, or intergovernmental department or agency from which the

person was detailed; or

‘‘(ii) the Authority.

‘‘(B) VIOLATION.—Any person that violates this paragraph shall be fined not more than $5,000, imprisoned not

more than 1 year, or both.

‘‘(C) APPLICABLE LAW.—The Federal cochairperson, the

alternate Federal cochairperson, and any Federal officer or

517

employee detailed to duty on the Authority under subsection

(e)(5) shall not be subject to subparagraph (A), but shall remain subject to sections 202 through 209 of title 18, United

States Code.

‘‘(5) ADDITIONAL PERSONNEL.— ‘‘(A) COMPENSATION.— ‘‘(i) IN GENERAL.—The Authority may appoint and

fix the compensation of an executive director and such

other personnel as are necessary to enable the Authority to carry out the duties of the Authority.

‘‘(ii) EXCEPTION.—Compensation under clause (i)

shall not exceed the maximum rate for the Senior Executive Service under section 5382 of title 5, United

States Code, including any applicable locality-based

comparability payment that may be authorized under

section 5304(h)(2)(C) of that title.

‘‘(B) EXECUTIVE DIRECTOR.—The executive director

shall be responsible for—

‘‘(i) the carrying out of the administrative duties of

the Authority;

‘‘(ii) direction of the Authority staff; and

‘‘(iii) such other duties as the Authority may assign.

‘‘(C) NO FEDERAL EMPLOYEE STATUS.—No member, alternate, officer, or employee of the Authority (except the

Federal cochairperson of the Authority, the alternate and

staff for the Federal cochairperson, and any Federal employee detailed to the Authority under subsection (e)(5))

shall be considered to be a Federal employee for any purpose.

‘‘(i) CONFLICTS OF INTEREST.— ‘‘(1) IN GENERAL.—Except as provided under paragraph (2),

no State member, alternate, officer, or employee of the Authority

shall participate personally and substantially as a member, alternate, officer, or employee of the Authority, through decision,

approval, disapproval, recommendation, the rendering of advice, investigation, or otherwise, in any proceeding, application,

request for a ruling or other determination, contract, claim, controversy, or other matter in which, to knowledge of the member,

alternate, officer, or employee—

‘‘(A) the member, alternate, officer, or employee;

‘‘(B) the spouse, minor child, partner, or organization

(other than a State or political subdivision of the State) of

the member, alternate, officer, or employee, in which the

member, alternate, officer, or employee is serving as officer,

director, trustee, partner, or employee; or

‘‘(C) any person or organization with whom the member, alternate, officer, or employee is negotiating or has any

arrangement concerning prospective employment;

has a financial interest.

‘‘(2) DISCLOSURE.—Paragraph (1) shall not apply if the

State member, alternate, officer, or employee—

‘‘(A) immediately advises the Authority of the nature

and circumstances of the proceeding, application, request

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for a ruling or other determination, contract, claim, controversy, or other particular matter presenting a potential

conflict of interest;

‘‘(B) makes full disclosure of the financial interest; and

‘‘(C) before the proceeding concerning the matter presenting the conflict of interest, receives a written determination by the Authority that the interest is not so substantial

as to be likely to affect the integrity of the services that the

Authority may expect from the State member, alternate, officer, or employee.

‘‘(3) VIOLATION.—Any person that violates this subsection

shall be fined not more than $10,000, imprisoned not more than

2 years, or both.

‘‘(j) VALIDITY OF CONTRACTS, LOANS, AND GRANTS.—The Authority may declare void any contract, loan, or grant of or by the

Authority in relation to which the Authority determines that there

has been a violation of any provision under subsection (h)(4), subsection (i), or sections 202 through 209 of title 18, United States

Code.

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

‘‘(a) IN GENERAL.—The Authority may approve grants to States

and public and nonprofit entities for projects, approved in accordance with section 382I—

‘‘(1) to develop the transportation infrastructure of the region for the purpose of facilitating economic development in the

region (except that grants for this purpose may only be made to

a State or local government);

‘‘(2) to assist the region in obtaining the job training, employment-related education, and business development (with an

emphasis on entrepreneurship) that are needed to build and

maintain strong local economies;

‘‘(3) to provide assistance to severely distressed and underdeveloped areas that lack financial resources for improving

basic public services;

‘‘(4) to provide assistance to severely distressed and underdeveloped areas that lack financial resources for equipping industrial parks and related facilities; and

‘‘(5) to otherwise achieve the purposes of this subtitle.

‘‘(b) FUNDING.—

‘‘(1) IN GENERAL.—Funds for grants under subsection (a)

may be provided—

‘‘(A) entirely from appropriations to carry out this section;

‘‘(B) in combination with funds available under another Federal or Federal grant program; or

‘‘(C) from any other source.

‘‘(2) PRIORITY OF FUNDING.—To best build the foundations

for long-term economic development and to complement other

Federal and State resources in the region, Federal funds available under this subtitle shall be focused on the activities in the

following order or priority:

‘‘(A) Basic public infrastructure in distressed counties

and isolated areas of distress.

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‘‘(B) Transportation infrastructure for the purpose of

facilitating economic development in the region.

‘‘(C) Business development, with emphasis on entrepreneurship.

‘‘(D) Job training or employment-related education,

with emphasis on use of existing public educational institutions located in the region.

‘‘(3) FEDERAL SHARE IN GRANT PROGRAMS.—Notwithstanding any provision of law limiting the Federal share in any

grant program, funds appropriated to carry out this section

may be used to increase a Federal share in a grant program,

as the Authority determines appropriate.

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

‘‘(a) FINDING.—Congress finds that certain States and local

communities of the region, including local development districts,

may be unable to take maximum advantage of Federal grant programs for which the States and communities are eligible because—

‘‘(1) they lack the economic resources to meet the required

matching share; or

‘‘(2) there are insufficient funds available under the applicable Federal grant law authorizing the program to meet pressing needs of the region.

‘‘(b) FEDERAL GRANT PROGRAM FUNDING.—In accordance with

subsection (c), the Federal cochairperson may use amounts made

available to carry out this subtitle, without regard to any limitations on areas eligible for assistance or authorizations for appropriation under any other Act, to fund all or any portion of the basic

Federal contribution to a project or activity under a Federal grant

program in the region in an amount that is above the fixed maximum portion of the cost of the project otherwise authorized by applicable law, but not to exceed 90 percent of the costs of the project

(except as provided in section 382F(b)).

‘‘(c) CERTIFICATION.— ‘‘(1) IN GENERAL.—In the case of any program or project for

which all or any portion of the basic Federal contribution to the

project under a Federal grant program is proposed to be made

under this section, no Federal contribution shall be made until

the Federal official administering the Federal law authorizing

the contribution certifies that the program or project—

‘‘(A) meets the applicable requirements of the applicable

Federal grant law; and

‘‘(B) could be approved for Federal contribution under

the law if funds were available under the law for the program or project.

‘‘(2) CERTIFICATION BY AUTHORITY.—

‘‘(A) IN GENERAL.—The certifications and determinations required to be made by the Authority for approval of

projects under this subtitle in accordance with section

382I—

‘‘(i) shall be controlling; and

‘‘(ii) shall be accepted by the Federal agencies.

‘‘(B) ACCEPTANCE BY FEDERAL COCHAIRPERSON.—Any

finding, report, certification, or documentation required to

be submitted to the head of the department, agency, or inVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00523 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.004 pfrm03 PsN: HR1033
520

strumentality of the Federal Government responsible for the

administration of any Federal grant program shall be accepted by the Federal cochairperson with respect to a supplemental grant for any project under the program.

‘‘SEC. 382E. LOCAL DEVELOPMENT DISTRICTS; CERTIFICATION AND

ADMINISTRATIVE EXPENSES.

‘‘(a) DEFINITION OF LOCAL DEVELOPMENT DISTRICT.—In this

section, the term ‘local development district’ means an entity that—

‘‘(1) is—

‘‘(A) a planning district in existence on the date of enactment of this subtitle that is recognized by the Economic

Development Administration of the Department of Commerce; or

‘‘(B) where an entity described in subparagraph (A)

does not exist—

‘‘(i) organized and operated in a manner that ensures broad-based community participation and an effective opportunity for other nonprofit groups to contribute to the development and implementation of programs in the region;

‘‘(ii) governed by a policy board with at least a

simple majority of members consisting of elected officials or employees of a general purpose unit of local

government who have been appointed to represent the

government;

‘‘(iii) certified to the Authority as having a charter

or authority that includes the economic development of

counties or parts of counties or other political subdivisions within the region—

‘‘(I) by the Governor of each State in which the

entity is located; or

‘‘(II) by the State officer designated by the appropriate State law to make the certification; and

‘‘(iv)(I) a nonprofit incorporated body organized or

chartered under the law of the State in which the entity is

located;

‘‘(II) a nonprofit agency or instrumentality of a State or

local government;

‘‘(III) a public organization established before the date

of enactment of this subtitle under State law for creation of

multi-jurisdictional, area-wide planning organizations; or

‘‘(IV) a nonprofit association or combination of bodies,

agencies, and instrumentalities described in subclauses (I)

through (III); and

‘‘(2) has not, as certified by the Federal cochairperson—

‘‘(A) inappropriately used Federal grant funds from

any Federal source; or

‘‘(B) appointed an officer who, during the period in

which another entity inappropriately used Federal grant

funds from any Federal source, was an officer of the other

entity.

‘‘(b) GRANTS TO LOCAL DEVELOPMENT DISTRICTS.—

‘‘(1) IN GENERAL.—The Authority may make grants for administrative expenses under this section.

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‘‘(2) CONDITIONS FOR GRANTS.—

‘‘(A) MAXIMUM AMOUNT.—The amount of any grant

awarded under paragraph (1) shall not exceed 80 percent

of the administrative expenses of the local development district receiving the grant.

‘‘(B) MAXIMUM PERIOD.—No grant described in paragraph (1) shall be awarded to a State agency certified as

a local development district for a period greater than 3

years.

‘‘(C) LOCAL SHARE.—The contributions of a local development district for administrative expenses may be in cash

or in kind, fairly evaluated, including space, equipment,

and services.

‘‘(c) DUTIES OF LOCAL DEVELOPMENT DISTRICTS.—A local development district shall—

‘‘(1) operate as a lead organization serving multicounty

areas in the region at the local level; and

‘‘(2) serve as a liaison between State and local governments,

nonprofit organizations (including community-based groups

and educational institutions), the business community, and citizens that—

‘‘(A) are involved in multijurisdictional planning;

‘‘(B) provide technical assistance to local jurisdictions

and potential grantees; and

‘‘(C) provide leadership and civic development assistance.

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

COUNTIES.

‘‘(a) DESIGNATIONS.—Not later than 90 days after the date of

enactment of this subtitle, and annually thereafter, the Authority, in

accordance with such criteria as the Authority may establish, shall

designate—

‘‘(1) as distressed counties, counties in the region that are

the most severely and persistently distressed and underdeveloped and have high rates of poverty or unemployment;

‘‘(2) as nondistressed counties, counties in the region that

are not designated as distressed counties under paragraph (1);

and

‘‘(3) as isolated areas of distress, areas located in nondistressed counties (as designated under paragraph (2)) that have

high rates of poverty or unemployment.

‘‘(b) DISTRESSED COUNTIES.—

‘‘(1) IN GENERAL.—The Authority shall allocate at least 75

percent of the appropriations made available under section

382M for programs and projects designed to serve the needs of

distressed counties and isolated areas of distress in the region.

‘‘(2) FUNDING LIMITATIONS.—The funding limitations under

section 382D(b) shall not apply to a project providing transportation or basic public services to residents of 1 or more distressed counties or isolated areas of distress in the region.

‘‘(c) NONDISTRESSED COUNTIES.—

‘‘(1) IN GENERAL.—Except as provided in this subsection, no

funds shall be provided under this subtitle for a project located

522

in a county designated as a nondistressed county under subsection (a)(2).

‘‘(2) EXCEPTIONS.—

‘‘(A) IN GENERAL.—The funding prohibition under

paragraph (1) shall not apply to grants to fund the administrative expenses of local development districts under section 382E(b).

‘‘(B) MULTICOUNTY PROJECTS.—The Authority may

waive the application of the funding prohibition under

paragraph (1) to—

‘‘(i) a multicounty project that includes participation by a nondistressed county; or

‘‘(ii) any other type of project;

if the Authority determines that the project could bring significant benefits to areas of the region outside a nondistressed county.

‘‘(C) ISOLATED AREAS OF DISTRESS.—For a designation

of an isolated area of distress for assistance to be effective,

the designation shall be supported—

‘‘(i) by the most recent Federal data available; or

‘‘(ii) if no recent Federal data are available, by the

most recent data available through the government of

the State in which the isolated area of distress is located.

‘‘(d) TRANSPORTATION AND BASIC PUBLIC INFRASTRUCTURE.—

The Authority shall allocate at least 50 percent of any funds made

available under section 382M for transportation and basic public

infrastructure projects authorized under paragraphs (1) and (3) of

section 382C(a).

‘‘SEC. 382G. DEVELOPMENT PLANNING PROCESS.

‘‘(a) STATE DEVELOPMENT PLAN.—In accordance with policies

established by the Authority, each State member shall submit a development plan for the area of the region represented by the State

member.

‘‘(b) CONTENT OF PLAN.—A State development plan submitted

under subsection (a) shall reflect the goals, objectives, and priorities

identified in the regional development plan developed under section

382B(d)(2).

‘‘(c) CONSULTATION WITH INTERESTED LOCAL PARTIES.—In carrying out the development planning process (including the selection

of programs and projects for assistance), a State may—

‘‘(1) consult with—

‘‘(A) local development districts; and

‘‘(B) local units of government; and

‘‘(2) take into consideration the goals, objectives, priorities,

and recommendations of the entities described in paragraph (1).

‘‘(d) PUBLIC PARTICIPATION.—

‘‘(1) IN GENERAL.—The Authority and applicable State and

local development districts shall encourage and assist, to the

maximum extent practicable, public participation in the development, revision, and implementation of all plans and programs under this subtitle.

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‘‘(2) REGULATIONS.—The Authority shall develop guidelines

for providing public participation described in paragraph (1),

including public hearings.

‘‘SEC. 382H. PROGRAM DEVELOPMENT CRITERIA.

‘‘(a) IN GENERAL.—In considering programs and projects to be

provided assistance under this subtitle, and in establishing a priority ranking of the requests for assistance provided by the Authority, the Authority shall follow procedures that ensure, to the maximum extent practicable, consideration of—

‘‘(1) the relationship of the project or class of projects to

overall regional development;

‘‘(2) the per capita income and poverty and unemployment

rates in an area;

‘‘(3) the financial resources available to the applicants for

assistance seeking to carry out the project, with emphasis on ensuring that projects are adequately financed to maximize the

probability of successful economic development;

‘‘(4) the importance of the project or class of projects in relation to other projects or classes of projects that may be in competition for the same funds;

‘‘(5) the prospects that the project for which assistance is

sought will improve, on a continuing rather than a temporary

basis, the opportunities for employment, the average level of income, or the economic development of the area served by the

project; and

‘‘(6) the extent to which the project design provides for detailed outcome measurements by which grant expenditures and

the results of the expenditures may be evaluated.

‘‘(b) NO RELOCATION ASSISTANCE.—No financial assistance authorized by this subtitle shall be used to assist a person or entity

in relocating from 1 area to another, except that financial assistance

may be used as otherwise authorized by this title to attract businesses from outside the region to the region.

‘‘(c) REDUCTION OF FUNDS.—Funds may be provided for a program or project in a State under this subtitle only if the Authority

determines that the level of Federal or State financial assistance

provided under a law other than this subtitle, for the same type of

program or project in the same area of the State within the region,

will not be reduced as a result of funds made available by this subtitle.

‘‘SEC. 382I. APPROVAL OF DEVELOPMENT PLANS AND PROJECTS.

‘‘(a) IN GENERAL.—A State or regional development plan or any

multistate subregional plan that is proposed for development under

this subtitle shall be reviewed by the Authority.

‘‘(b) EVALUATION BY STATE MEMBER.—An application for a

grant or any other assistance for a project under this subtitle shall

be made through and evaluated for approval by the State member

of the Authority representing the applicant.

‘‘(c) CERTIFICATION.—An application for a grant or other assistance for a project shall be approved only on certification by the

State member that the application for the project—

‘‘(1) describes ways in which the project complies with any

applicable State development plan;

524

‘‘(2) meets applicable criteria under section 382H;

‘‘(3) provides adequate assurance that the proposed project

will be properly administered, operated, and maintained; and

‘‘(4) otherwise meets the requirements of this subtitle.

‘‘(d) VOTES FOR DECISIONS.—On certification by a State member of the Authority of an application for a grant or other assistance

for a specific project under this section, an affirmative vote of the

Authority under section 382B(c) shall be required for approval of

the application.

‘‘SEC. 382J. CONSENT OF STATES.

‘‘Nothing in this subtitle requires any State to engage in or accept any program under this subtitle without the consent of the

State.

‘‘SEC. 382K. RECORDS.

‘‘(a) RECORDS OF THE AUTHORITY.—

‘‘(1) IN GENERAL.—The Authority shall maintain accurate

and complete records of all transactions and activities of the

Authority.

‘‘(2) AVAILABILITY.—All records of the Authority shall be

available for audit and examination by the Comptroller General

of the United States and the Inspector General of the Department of Agriculture (including authorized representatives of the

Comptroller General and the Inspector General of the Department of Agriculture).

‘‘(b) RECORDS OF RECIPIENTS OF FEDERAL ASSISTANCE.—

‘‘(1) IN GENERAL.—A recipient of Federal funds under this

subtitle shall, as required by the Authority, maintain accurate

and complete records of transactions and activities financed

with Federal funds and report on the transactions and activities to the Authority.

‘‘(2) AVAILABILITY.—All records required under paragraph

(1) shall be available for audit by the Comptroller General of

the United States, the Inspector General of the Department of

Agriculture, and the Authority (including authorized representatives of the Comptroller General, the Inspector General of the

Department of Agriculture, and the Authority).

‘‘(c) ANNUAL AUDIT.—The Inspector General of the Department

of Agriculture shall audit the activities, transactions, and records of

the Authority on an annual basis.

‘‘SEC. 382L. ANNUAL REPORT.

‘‘Not later than 180 days after the end of each fiscal year, the

Authority shall submit to the President and to Congress a report describing the activities carried out under this subtitle.

‘‘SEC. 382M. AUTHORIZATION OF APPROPRIATIONS.

‘‘(a) IN GENERAL.—There is authorized to be appropriated to the

Authority to carry out this subtitle $30,000,000 for each of fiscal

years 2001 through 2002, to remain available until expended.

‘‘(b) ADMINISTRATIVE EXPENSES.—Not more than 5 percent of

the amount appropriated under subsection (a) for a fiscal year shall

be used for administrative expenses of the Authority.

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‘‘SEC. 382N. TERMINATION OF AUTHORITY.

‘‘This subtitle and the authority provided under this subtitle expire on October 1, 2002.’’.

SEC. 504. AREA COVERED BY LOWER MISSISSIPPI DELTA DEVELOPMENT COMMISSION.

(a) IN GENERAL.—Section 4(2)(D) of the Delta Development Act

(42 U.S.C. 3121 note; 102 Stat. 2246) is amended by inserting

‘‘Natchitoches,’’ after ‘‘Winn,’’.

(b) CONFORMING AMENDMENT.—The matter under the heading

‘‘SALARIES AND EXPENSES’’ under the heading ‘‘FARMERS HOME ADMINISTRATION’’ in title II of Public Law 100–460 (102 Stat. 2246) is

amended in the fourth proviso by striking ‘‘carry out’’ and all that

follows through ‘‘bills are hereby’’ and inserting ‘‘carry out S. 2836,

the Delta Development Act, as introduced in the Senate on September 27, 1988, and that bill is’’.

TITLE VI—DAKOTA WATER RESOURCES ACT OF 2000

SECTION 601. SHORT TITLE.

This title may be cited as the ‘‘Dakota Water Resources Act of

2000’’.

SEC. 602. PURPOSES AND AUTHORIZATION.

Section 1 of Public Law 89–108 (79 Stat. 433; 100 Stat. 418)

is amended—

(1) in subsection (a)—

(A) in paragraph (2), by striking ‘‘of’’ and inserting

‘‘within’’;

(B) in paragraph (5), by striking ‘‘more timely’’ and inserting ‘‘appropriate’’; and

(C) in paragraph (7), by striking ‘‘federally-assisted

water resource development project providing irrigation for

130,940 acres of land’’ and inserting ‘‘multipurpose federally assisted water resource project providing irrigation,

municipal, rural, and industrial water systems, fish, wildlife, and other natural resource conservation and development, recreation, flood control, ground water recharge, and

augmented stream flows’’;

(2) in subsection (b)—

(A) by inserting ‘‘, jointly with the State of North Dakota,’’ after ‘‘construct’’;

(B) by striking ‘‘the irrigation of 130,940 acres’’ and inserting ‘‘irrigation’’;

(C) by striking ‘‘fish and wildlife conservation’’ and inserting ‘‘fish, wildlife, and other natural resource conservation’’;

(D) by inserting ‘‘augmented stream flows, ground

water recharge,’’ after ‘‘flood control,’’; and

(E) by inserting ‘‘(as modified by the Dakota Water Resources Act of 2000)’’ before the period at the end;

(3) in subsection (e), by striking ‘‘terminated’’ and all that

follows and inserting ‘‘terminated.’’; and

(4) by striking subsections (f) and (g) and inserting the following:

‘‘(f) COSTS.—

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‘‘(1) ESTIMATE.—The Secretary shall estimate—

‘‘(A) the actual construction costs of the facilities (including mitigation facilities) in existence as of the date of

enactment of the Dakota Water Resources Act of 2000; and

‘‘(B) the annual operation, maintenance, and replacement costs associated with the used and unused capacity of

the features in existence as of that date.

‘‘(2) REPAYMENT CONTRACT.—An appropriate repayment

contract shall be negotiated that provides for the making of a

payment for each payment period in an amount that is commensurate with the percentage of the total capacity of the

project that is in actual use during the payment period.

‘‘(3) OPERATION AND MAINTENANCE COSTS.—Except as otherwise provided in this Act or Reclamation Law—

‘‘(A) The Secretary shall be responsible for the costs of

operation and maintenance of the proportionate share of

unit facilities in existence on the date of enactment of the

Dakota Water Resources Act of 2000 attributable to the capacity of the facilities (including mitigation facilities) that

remain unused;

‘‘(B) The State of North Dakota shall be responsible for

costs of operation and maintenance of the proportionate

share of existing unit facilities that are used and shall be

responsible for the full costs of operation and maintenance

of any facility constructed after the date of enactment of the

Dakota Water Resources Act of 2000; and

‘‘(C) The State of North Dakota shall be responsible for

the costs of providing energy to authorized unit facilities.

‘‘(g) AGREEMENT BETWEEN THE SECRETARY AND THE STATE.—

The Secretary shall enter into 1 or more agreements with the State

of North Dakota to carry out this Act, including operation and

maintenance of the completed unit facilities and the design and construction of authorized new unit facilities by the State.

‘‘(h) BOUNDARY WATERS TREATY OF 1909.—

‘‘(1) DELIVERY OF WATER INTO THE HUDSON BAY BASIN.—

Prior to construction of any water systems authorized under

this Act to deliver Missouri River water into the Hudson Bay

basin, the Secretary, in consultation with the Secretary of State

and the Administrator of the Environmental Protection Agency,

must determine that adequate treatment can be provided to

meet the requirements of the Treaty between the United States

and Great Britain relating to Boundary Waters Between the

United States and Canada, signed at Washington, January 11,

1909 (26 Stat. 2448; TS 548) (commonly known as the Boundary Waters Treaty of 1909).

‘‘(2) COSTS.—All costs of construction, operation, maintenance, and replacement of water treatment and related facilities

authorized by this Act and attributable to meeting the requirements of the treaty referred to in paragraph (1) shall be nonreimbursable.’’.

SEC. 603. FISH AND WILDLIFE.

Section 2 of Public Law 89–108 (79 Stat. 433; 100 Stat. 419)

is amended—

527

(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

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(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 RES- ERVOIR.—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,

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Mon-Dak, Nesson Valley, Horsehead Flats, and Oliver-Mercer

areas) that are not located in the Hudson Bay/Devils Lake

drainage basin or James River drainage basin.

‘‘(4) PUMPING POWER.—Irrigation development authorized

by this section shall be considered authorized units of the PickSloan Missouri Basin Program and eligible to receive project

pumping power.

‘‘(5) PRINCIPAL SUPPLY WORKS.—The Secretary shall maintain the Snake Creek Pumping Plant, New Rockford Canal, and

McClusky Canal features of the principal supply works. Subject

to the provisions of section (8) of this Act, the Secretary shall

select a preferred alternative to implement the Dakota Water

Resources Act of 2000. In making this section, one of the alternatives the Secretary shall consider is whether to connect the

principal supply works in existence on the date of enactment.’’;

(2) by redesignating subsections (d), (e), and (f) as subsections (b), (c), and (d), respectively;

(3) in the first sentence of subsection (b) (as redesignated by

paragraph (2)), by striking ‘‘(a)(1)’’ and inserting ‘‘(a)’’;

(4) in the first sentence of subsection (c) (as redesignated by

paragraph (2)), by striking ‘‘Lucky Mound (7,700 acres), Upper

Six Mile Creek (7,500 acres)’’ and inserting ‘‘Lucky Mound

(7,700 acres) and Upper Six Mile Creek (7,500 acres), or such

other lands at Fort Berthold of equal acreage as may be selected

by the tribe and approved by the Secretary,’’; and

(5) by adding at the end the following:

‘‘(e) IRRIGATION REPORT TO CONGRESS.— ‘‘(1) IN GENERAL.—The Secretary shall investigate and prepare a detailed report on the undesignated 28,000 acres in subsection (a)(3) as to costs and benefits for any irrigation units to

be developed under Reclamation law.

‘‘(2) FINDING.—The report shall include a finding on the

economic, financial and engineering feasibility of the proposed

irrigation unit, but shall be limited to the undesignated 28,000

acres.

‘‘(3) AUTHORIZATION.—If the Secretary finds that the proposed construction is feasible, such irrigation units are authorized without further Act of Congress.

‘‘(4) DOCUMENTATION.—No expenditure for the construction

of facilities authorized under this section shall be made until

after the Secretary, in cooperation with the State of North Dakota, has prepared the appropriate documentation in accordance with section 1 and pursuant to the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) analyzing the

direct and indirect impacts of implementing the report.’’.

SEC. 606. POWER.

Section 6 of Public Law 89–108 (79 Stat. 435; 100 Stat. 421)

is amended—

(1) in subsection (b)—

(A) by striking ‘‘Notwithstanding the provisions of’’ and

inserting ‘‘Pursuant to the provisions of’’; and

(B) by striking ‘‘revenues,’’ and all that follows and inserting ‘‘revenues.’’; and

(2) by striking subsection (c) and inserting the following:

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‘‘(c) NO INCREASE IN RATES OR AFFECT ON REPAYMENT METH- ODOLOGY.—In accordance with the last sentence of section 302(a)(3)

of the Department of Energy Organization Act (42 U.S.C.

7152(a)(3)), section 1(e) shall not result in any reallocation of project

costs and shall not result in increased rates to Pick-Sloan Missouri

Basin Program customers. Nothing in the Dakota Water Resources

Act of 2000 alters or affects in any way the repayment methodology

in effect as of the date of enactment of that Act for other features

of the Pick-Sloan Missouri Basin Program.’’.

SEC. 607. MUNICIPAL, RURAL, AND INDUSTRIAL WATER SERVICE.

Section 7 of Public Law 89–108 (100 Stat. 422) is amended—

(1) in subsection (a)(3)—

(A) in the second sentence—

(i) by striking ‘‘The non-Federal share’’ and inserting ‘‘Unless otherwise provided in this Act, the nonFederal 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 muVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00534 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.004 pfrm03 PsN: HR1033
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nicipal, industrial, and rural water systems in North Dakota, the

costs of the features constructed on the Missouri River by the Secretary of the Army before the date of enactment of the Dakota Water

Resources Act of 2000 shall be nonreimbursable.

‘‘(d) INDIAN MUNICIPAL RURAL AND INDUSTRIAL WATER SUPPLY.—The Secretary shall construct, operate, and maintain such

municipal, rural, and industrial water systems as the Secretary determines to be necessary to meet the economic, public health, and

environmental needs of the Fort Berthold, Standing Rock, Turtle

Mountain (including the Trenton Indian Service Area), and Fort

Totten Indian Reservations and adjacent areas.’’.

SEC. 608. SPECIFIC FEATURES.

(a) SYKESTON CANAL.—Sykeston Canal is hereby deauthorized.

(b) IN GENERAL.—Public Law 89–108 (100 Stat. 423) is amended by striking section 8 and inserting the following:

‘‘SEC. 8. SPECIFIC FEATURES.

‘‘(a) RED RIVER VALLEY WATER SUPPLY PROJECT.—

‘‘(1) IN GENERAL.—Subject to the requirements of this section, the Secretary shall construct a feature or features to provide water to the Sheyenne River water supply and release facility or such other feature or features as are selected under subsection (d).

‘‘(2) DESIGN AND CONSTRUCTION.—The feature or features

shall be designed and constructed to meet only the following

water supply requirements as identified in the report prepared

pursuant to subsection (b) of this section: Municipal, rural, and

industrial water supply needs; ground water recharge; and

streamflow augmentation.

‘‘(3) COMMENCEMENT OF CONSTRUCTION.—(A) If the Secretary selects a project feature under this section that would

provide water from the Missouri River or its tributaries to the

Sheyenne River water supply and release facility or from the

Missouri River or its tributaries to such other conveyance facility as the Secretary selects under this section, no later than 90

days after the completion of the final environmental impact

statement, the Secretary shall transmit to Congress a comprehensive report which provides—

‘‘(i) a detailed description of the proposed project feature;

‘‘(ii) a summary of major issues addressed in the environmental impact statement;

‘‘(iii) likely effects, if any, on other States bordering the

Missouri River and on the State of Minnesota; and

‘‘(iv) a description of how the project feature complies

with the requirements of section 1(h)(1) of this Act (relating

to the Boundary Waters Treaty of 1909).

‘‘(B) No project feature or features that would provide water

from the Missouri River or its tributaries to the Sheyenne River

water supply and release facility or from the Missouri River or

its tributaries to such other conveyance facility as the Secretary

selects under this section shall be constructed unless such feature is specifically authorized by an Act of Congress approved

subsequent to the Secretary’s transmittal of the report required

532

in subparagraph (A). If, after complying with subsections (b)

through (d) of this section, the Secretary selects a feature or features using only in-basin sources of water to meet the water

needs of the Red River Valley identified in subsection (b), such

features are authorized without further Act of Congress. The Act

of Congress referred to in this subparagraph must be an authorization bill, and shall not be a bill making appropriations.

‘‘(C) The Secretary may not commence construction on the

feature until a master repayment contract or water service

agreement consistent with this Act between the Secretary and

the appropriate non-Federal entity has been executed.

‘‘(b) REPORT ON RED RIVER VALLEY WATER NEEDS AND OP- TIONS.—‘‘(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 SecVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00536 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.004 pfrm03 PsN: HR1033
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retary and the State of North Dakota shall jointly prepare

and complete a draft environmental impact statement concerning all feasible options to meet the comprehensive water

quality and quantity needs of the Red River Valley and the

options for meeting those needs, including the delivery of

Missouri River water to the Red River Valley.

‘‘(B) REPORT ON STATUS.—If the Secretary and State of

North Dakota cannot prepare and complete the draft environmental impact statement within 1 year after the date of

enactment of the Dakota Water Resources Act of 2000, the

Secretary, in consultation and coordination with the State

of North Dakota, shall report to Congress on the status of

this activity, including an estimate of the date of completion.

‘‘(3) FINAL.— ‘‘(A) DEADLINE.—Not later than 1 year after filing the

draft environmental impact statement, a final environmental impact statement shall be prepared and published.

‘‘(B) REPORT ON STATUS.—If the Secretary and State of

North Dakota cannot prepare and complete a final environmental impact statement within 1 year of the completion of

the draft environmental impact statement, the Secretary, in

consultation and coordination with the State of North Dakota, shall report to Congress on the status of this activity,

including an estimate of the date of completion.

‘‘(d) PROCESS FOR SELECTION.— ‘‘(1) IN GENERAL.—After reviewing the final report required

by subsection (b)(1) and complying with subsection (c), the Secretary, in consultation and coordination with the State of North

Dakota in coordination with affected local communities, shall

select 1 or more project features described in subsection (a) that

will meet the comprehensive water quality and quantity needs

of the Red River Valley. The Secretary’s selection of an alternative shall be subject to judicial review.

‘‘(2) AGREEMENTS.—If the Secretary selects an option under

paragraph (1) that uses only in-basin sources of water, not later

than 180 days after the record of decision has been executed, the

Secretary shall enter into a cooperative agreement with the

State of North Dakota to construct the feature or features selected. If the Secretary selects an option under paragraph (1)

that would require a further act of Congress under the provisions of subsection (a), not later than 180 days after the date

of enactment of legislation required under subsection (a) the

Secretary shall enter into a cooperative agreement with the

State of North Dakota to construct the feature or features authorized by that legislation.

‘‘(e) SHEYENNE RIVER WATER SUPPLY AND RELEASE OR ALTERNATE FEATURES.—The Secretary shall construct, operate, and maintain a Sheyenne River water supply and release feature (including

a water treatment plant) capable of delivering 100 cubic feet per second of water or any other amount determined in the reports under

this section, for the cities of Fargo and Grand Forks and surrounding communities, or such other feature or features as may be

selected under subsection (d).

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‘‘(f) DEVILS LAKE.—No funds authorized under this Act may be

used to carry out the portion of the feasibility study of the Devils

Lake basin, North Dakota, authorized under the Energy and Water

Development Appropriations Act of 1993 (Public Law 102–377), that

addresses the needs of the area for stabilized lake levels through

inlet controls, or to otherwise study any facility or carry out any activity that would permit the transfer of water from the Missouri

River drainage basin into Devils Lake, North Dakota.’’.

SEC. 609. OAKES TEST AREA TITLE TRANSFER.

Public Law 89–108 (100 Stat. 423) is amended by striking section 9 and inserting the following:

‘‘SEC. 9. OAKES TEST AREA TITLE TRANSFER.

‘‘(a) IN GENERAL.—Not later than 2 years after execution of a

record of decision under section 8(d) on whether to use the New

Rockford Canal as a means of delivering water to the Red River

Basin as described in section 8, the Secretary shall enter into an

agreement with the State of North Dakota, or its designee, to convey

title and all or any rights, interests, and obligations of the United

States in and to the Oakes Test Area as constructed and operated

under Public Law 99–294 (100 Stat. 418) under such terms and

conditions as the Secretary believes would fully protect the public

interest.

‘‘(b) TERMS AND CONDITIONS.—The agreement shall define the

terms and conditions of the transfer of the facilities, lands, mineral

estate, easements, rights-of-way and water rights including the

avoidance of costs that the Federal Government would otherwise

incur in the case of a failure to agree under subsection (d).

‘‘(c) COMPLIANCE.—The action of the Secretary under this section shall comply with all applicable requirements of Federal, State,

and local law.

‘‘(d) FAILURE TO AGREE.—If an agreement is not reached within

the time limit specified in subsection (a), the Secretary shall dispose

of the Oakes Test Area facilities under the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 471 et seq.).’’.

SEC. 610. AUTHORIZATION OF APPROPRIATIONS.

Section 10 of Public Law 89–108 (100 Stat. 424; 106 Stat. 4669,

4739) is amended—

(1) in subsection (a)—

(A) by striking ‘‘(a)(1) There are authorized’’ and inserting the following:

‘‘(a) WATER DISTRIBUTION FEATURES.—

‘‘(1) IN GENERAL.—

‘‘(A) MAIN STEM SUPPLY WORKS.—There is authorized’’;

(B) in paragraph (1)—

(i) in the first sentence, by striking ‘‘$270,395,000

for carrying out the provisions of section 5(a) through

5(c) and section 8(a)(1) of this Act’’ and inserting

‘‘$164,000,000 to carry out section 5(a)’’;

(ii) by inserting after subparagraph (A) (as designated by clause (i)) the following:

‘‘(B) RED RIVER VALLEY WATER SUPPLY PROJECT.—

There is authorized to be appropriated to carry out section

8(a)(1) $200,000,000.’’; and

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(iii) by striking ‘‘Such sums’’ and inserting the following:

‘‘(C) AVAILABILITY.—Such sums’’; and

(C) in paragraph (2)—

(i) by striking ‘‘(2) There is’’ and inserting the following:

‘‘(2) INDIAN IRRIGATION.— ‘‘(A) IN GENERAL.—There is’’;

(ii) by striking ‘‘for carrying out section 5(e) of this

Act’’ and inserting ‘‘to carry out section 5(c)’’; and

(iii) by striking ‘‘Such sums’’ and inserting the following:

‘‘(B) AVAILABILITY.—Such sums’’;

(2) in subsection (b)—

(A) by striking ‘‘(b)(1) There is’’ and inserting the following:

‘‘(b) MUNICIPAL, RURAL, AND INDUSTRIAL WATER SUPPLY.— ‘‘(1) STATEWIDE.— ‘‘(A) INITIAL AMOUNT.—There is’’;

(B) in paragraph (1)—

(i) by inserting before ‘‘Such sums’’ the following:

‘‘(B) ADDITIONAL AMOUNT.—In addition to the amount

under subparagraph (A), there is authorized to be appropriated to carry out section 7(a) $200,000,000.’’; and

(ii) by striking ‘‘Such sums’’ and inserting the following:

‘‘(C) AVAILABILITY.—Such sums’’; and

(C) in paragraph (2)—

(i) by striking ‘‘(2) There are authorized to be ap- propriated $61,000,000’’ and all that follows through

‘‘Act.’’ and inserting the following:

‘‘(2) INDIAN MUNICIPAL, RURAL, AND INDUSTRIAL AND OTHER

DELIVERY FEATURES.— ‘‘(A) INITIAL AMOUNT.—There is authorized to be

appropriated—

‘‘(i) to carry out section 8(a)(1), $40,500,000; and

‘‘(ii) to carry out section 7(d), $20,500,000.’’;

(ii) by inserting before ‘‘Such sums’’ the following:

‘‘(B) ADDITIONAL AMOUNT.—

‘‘(i) IN GENERAL.—In addition to the amount under

subparagraph (A), there is authorized to be appropriated to carry out section 7(d) $200,000,000.

‘‘(ii) ALLOCATION.—The amount under clause (i)

shall be allocated as follows:

‘‘(I) $30,000,000 to the Fort Totten Indian Reservation.

‘‘(II) $70,000,000 to the Fort Berthold Indian

Reservation.

‘‘(IV) $80,000,000 to the Standing Rock Indian

Reservation.

‘‘(V) $20,000,000 to the Turtle Mountain Indian Reservation.’’; and

(ii) by striking ‘‘Such sums’’ and inserting the following:

536

‘‘(C) AVAILABILITY.—Such sums’’;

(3) in subsection (c)—

(A) by striking ‘‘(c) There is’’ and inserting the following:

‘‘(c) RESOURCES TRUST AND OTHER PROVISIONS.—

‘‘(1) INITIAL AMOUNT.—There is’’; and

(B) by striking the second and third sentences and inserting the following:

‘‘(2) ADDITIONAL AMOUNT.—In addition to amount under

paragraph (1), there are authorized to be appropriated—

‘‘(A) $6,500,000 to carry out recreational projects; and

‘‘(B) an additional $25,000,000 to carry out section 11;

to remain available until expended.

‘‘(3) RECREATIONAL PROJECTS.—Of the funds authorized

under paragraph (2) for recreational projects, up to $1,500,000

may be used to fund a wetland interpretive center in the State

of North Dakota.

‘‘(4) OPERATION AND MAINTENANCE.—

‘‘(A) IN GENERAL.— There are authorized to be appropriated such sums as are necessary for operation and maintenance of the unit (including the mitigation and enhancement features).

‘‘(B) AUTHORIZATION LIMITS.—Expenditures for operation and maintenance of features substantially completed

and features constructed before the date of enactment of the

Dakota Water Resources Act of 2000, including funds expended for such purposes since the date of enactment of

Public Law 99–294, shall not be counted against the authorization limits in this section.

‘‘(5) MITIGATION AND ENHANCEMENT LAND.—On or about

the date on which the features authorized by section 8(a) are

operational, a separate account in the Natural Resources Trust

authorized by section 11 shall be established for operation and

maintenance of the mitigation and enhancement land associated with the unit.’’; and

(4) by striking subsection (e) and inserting the following:

‘‘(e) INDEXING.—The $200,000,000 amount under subsection

(b)(1)(B), the $200,000,000 amount under subsection (a)(1)(B), and

the funds authorized under subsection (b)(2) shall be indexed as

necessary to allow for ordinary fluctuations of construction costs incurred after the date of enactment of the Dakota Water Resources

Act of 2000 as indicated by engineering cost indices applicable for

the type of construction involved. All other authorized cost ceilings

shall remain unchanged.’’.

SEC. 611. NATURAL RESOURCES TRUST.

Section 11 of Public Law 89–108 (100 Stat. 424) is amended—

(1) by striking subsection (a) and inserting the following:

‘‘(a) CONTRIBUTION.—

‘‘(1) INITIAL AUTHORIZATION.—

‘‘(A) IN GENERAL.—From the sums appropriated under

section 10 for the Garrison Diversion Unit, the Secretary

shall make an annual Federal contribution to a Natural

Resources Trust established by non-Federal interests in acVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00540 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.004 pfrm03 PsN: HR1033
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cordance with subsection (b) and operated in accordance

with subsection (c).

‘‘(B) AMOUNT.—The total amount of Federal contributions under subparagraph (A) shall not exceed $12,000,000.

‘‘(2) ADDITIONAL AUTHORIZATION.—

‘‘(A) IN GENERAL.—In addition to the amount authorized in paragraph (1), the Secretary shall make annual

Federal contributions to the Natural Resources Trust until

the amount authorized by section 10(c)(2)(B) is reached, in

the manner stated in subparagraph (B).

‘‘(B) ANNUAL AMOUNT.—The amount of the contribution

under subparagraph (A) for each fiscal year shall be the

amount that is equal to 5 percent of the total amount that

is appropriated for the fiscal year under subsections

(a)(1)(B) and (b)(1)(B) of section 10.’’.

(2) in subsection (b), by striking ‘‘Wetlands Trust’’ and inserting ‘‘Natural Resources Trust’’; and

(3) in subsection (c)—

(A) by striking ‘‘Wetland Trust’’ and inserting ‘‘Natural

Resources Trust’’;

(B) by striking ‘‘are met’’ and inserting ‘‘is met’’;

(C) in paragraph (1), by inserting ‘‘, grassland conservation and riparian areas’’ after ‘‘habitat’’; and

(D) in paragraph (2), by adding at the end the following:

‘‘(C) The power to fund incentives for conservation

practices by landowners.’’

TITLE VII

SECTION 701. FINDINGS.

Congress finds that—

(1) there is a continuing need for reconciliation between Indians and non-Indians;

(2) the need may be met partially through the promotion of

the understanding of the history and culture of Sioux Indian

tribes;

(3) the establishment of a Sioux Nation Tribal Supreme

Court will promote economic development on reservations of the

Sioux Nation and provide investors that contribute to that development a greater degree of certainty and confidence by—

(A) reconciling conflicting tribal laws; and

(B) strengthening tribal court systems;

(4) the reservations of the Sioux Nation—

(A) contain the poorest counties in the United States;

and

(B) lack adequate tools to promote economic development and the creation of jobs;

(5) the establishment of a Native American Economic Development Council will assist in promoting economic growth

and reducing poverty on reservations of the Sioux Nation by—

(A) coordinating economic development efforts;

(B) centralizing expertise concerning Federal assistance; and

538

(C) facilitating the raising of funds from private donations to meet matching requirements under certain Federal

assistance programs;

(6) there is a need to enhance and strengthen the capacity

of Indian tribal governments and tribal justice systems to address conflicts which impair relationships within Indian communities and between Indian and non-Indian communities and

individuals; and

(7) the establishment of the National Native American Mediation Training Center, with the technical assistance of tribal

and Federal agencies, including the Community Relations Service of the Department of Justice, would enhance and strengthen

the mediation skills that are useful in reducing tensions and resolving conflicts in Indian communities and between Indian

and non-Indian communities and individuals.

SEC. 702. DEFINITIONS.

In this title:

(1) INDIAN TRIBE.—The term ‘‘Indian tribe’’ has the meaning given that term in section 4(e) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b(e)).

(2) SECRETARY.—The term ‘‘Secretary’’ means the Secretary

of the Interior.

(3) SIOUX NATION.—The term ‘‘Sioux Nation’’ means the Indian tribes comprising the Sioux Nation.

SEC. 703. RECONCILIATION CENTER.

(a) ESTABLISHMENT.—The Secretary of Housing and Urban Development, in cooperation with the Secretary, shall establish, in accordance with this section, a reconciliation center, to be known as

‘‘Reconciliation Place’’.

(b) LOCATION.—Notwithstanding any other provision of law, the

Secretary shall take into trust for the benefit of the Sioux Nation the

parcel of land in Stanley County, South Dakota, that is described

as ‘‘The Reconciliation Place Addition’’ that is owned on the date of

enactment of this Act by the Wakpa Sica Historical Society, Inc., for

the purpose of establishing and operating The Reconciliation Place.

(c) PURPOSES.—The purposes of Reconciliation Place shall be as

follows:

(1) To enhance the knowledge and understanding of the

history of Native Americans by—

(A) displaying and interpreting the history, art, and

culture of Indian tribes for Indians and non-Indians; and

(B) providing an accessible repository for—

(i) the history of Indian tribes; and

(ii) the family history of members of Indian tribes.

(2) To provide for the interpretation of the encounters between Lewis and Clark and the Sioux Nation.

(3) To house the Sioux Nation Tribal Supreme Court.

(4) To house the Native American Economic Development

Council.

(5) To house the National Native American Mediation

Training Center to train tribal personnel in conflict resolution

and alternative dispute resolution.

(d) GRANT.—

539

(1) IN GENERAL.—The Secretary of Housing and Urban Development shall offer to award a grant to the Wakpa Sica Historical Society of Fort Pierre, South Dakota, for the construction

of Reconciliation Place.

(2) GRANT AGREEMENT.—

(A) IN GENERAL.—As a condition to receiving the grant

under this subsection, the appropriate official of the Wakpa

Sica Historical Society shall enter into a grant agreement

with the Secretary of Housing and Urban Development.

(B) CONSULTATION.—Before entering into a grant

agreement under this paragraph, the Secretary of Housing

and Urban Development shall consult with the Secretary

concerning the contents of the agreement.

(C) DUTIES OF THE WAKPA SICA HISTORICAL SOCIETY.—

The grant agreement under this paragraph shall specify the

duties of the Wakpa Sica Historical Society under this section and arrangements for the maintenance of Reconciliation Place.

(3) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated to the Department of Housing and

Urban Development $18,258,441, to be used for the grant under

this section.

SEC. 704. SIOUX NATION SUPREME COURT AND NATIONAL NATIVE

AMERICAN MEDIATION TRAINING CENTER.

(a) IN GENERAL.—To ensure the development and operation of

the Sioux Nation Tribal Supreme Court and the National Native

American Mediation Training Center, the Attorney General of the

United States shall use available funds to provide technical and financial assistance to the Sioux Nation.

(b) AUTHORIZATION OF APPROPRIATIONS.—To carry out this section, there are authorized to be appropriated to the Department of

Justice such sums as are necessary.

TITLE VIII—ERIE CANALWAY NATIONAL HERITAGE

CORRIDOR

SEC. 801. SHORT TITLE; DEFINITIONS.

(a) SHORT TITLE.—This title may be cited as the ‘‘Erie

Canalway National Heritage Corridor Act’’.

(b) DEFINITIONS.—For the Purposes of this title, the following

definitions shall apply:

(1) ERIE CANALWAY.—The Term ‘‘Erie Canalway’’ means the

524 miles of navigable canal that comprise the New York State

Canal System, including the Erie, Cayuga and Seneca, Oswego,

and Champlain Canals and the historic alignments of these canals, including the cities of Albany and Buffalo.

(2) CANALWAY PLAN.—The term ‘‘Canalway Plan’’ means

the comprehensive preservation and management plan for the

Corridor required under section 806.

(3) COMMISSION.—The term ‘‘Commission’’ means the Erie

Canalway National Heritage Corridor Commission established

under section 804.

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(4) CORRIDOR.—The term ‘‘Corridor’’ means the Erie

Canalway National Heritage Corridor established under section

803.

(5) GOVERNOR.—The term ‘‘Governor’’ means the Governor

of the State of New York.

(6) SECRETARY.—The term ‘‘Secretary’’ means the Secretary

of the Interior.

SEC. 802. FINDINGS AND PURPOSES.

(a) FINDINGS.—The Congress finds that—

(1) the year 2000 marks the 175th Anniversary of New York

State’s creation and stewardship of the Erie Canalway for commerce, transportation and recreational purposes, establishing

the network which made new York the ‘‘Empire State’’ and the

Nation’s premier commercial and financial center;

(2) the canals and adjacent areas that comprise the Erie

Canalway are a nationally significant resource of historic and

recreational value, which merit Federal recognition and assistance;

(3) the Erie Canalway was instrumental in the establishment of strong political and cultural ties between New England,

upstate New York and the old Northwest and facilitated the

movement of ideas and people ensuring that social reforms like

the abolition of slavery and the women’s rights movement

spread across upstate New York to the rest of the country;

(4) the construction of the Erie Canalway was considered a

supreme engineering feat, and most American canals were modeled after New York State’s canal;

(5) at the time of construction, the Erie Canalway was the

largest public works project ever undertaken by a state, resulting in the creation of critical transportation and commercial

routes to transport passengers and goods;

(6) the Erie Canalway played a key role in turning New

York City into a major port and New York State into the preeminent center for commerce, industry, and finance in North

America and provided a permanent commercial link between

the Port of New York and the cities of eastern Canada, a cornerstone of the peaceful relationship between the two countries;

(7) the Erie Canalway proved the depth and force of American ingenuity, solidified a national identity, and found an enduring place in American legend, song, and art;

(8) there is national interest in the preservation and interpretation of the Erie Canalway’s important historical, natural,

cultural, and scenic resources; and

(9) partnerships among Federal, State, and local governments and their regional entities, non-profit organizations, and

the private sector offer the most effective opportunities for the

preservation and interpretation of the Erie Canalway.

(b) PURPOSES.—The purposes of this title are—

(1) to designate the Erie Canalway National Heritage Corridor;

(2) to provide for and assist in the identification, preservation, promotion, maintenance and interpretation of the historical, natural, cultural, scenic, and recreational resources of the

541

Erie Canalway in ways that reflect its national significance for

the benefit of current and future generations;

(3) to promote and provide access to the Erie Canalway’s

historical, natural, cultural, scenic and recreational resources;

(4) to provide a frame work to assist the State of New York,

its units of local government, and the communities within the

Erie Canalway in the development of integrated cultural, historical, recreational, economic, and community development

programs in order to enhance and interpret the unique and nationally significant resources of the Erie Canalway; and

(5) to authorize Federal financial and technical assistance

to the Commission to serve these purposes for the benefit of the

people of the State of New York and the nation.

SEC. 803. THE ERIE CANALWAY NATIONAL HERITAGE CORRIDOR.

(a) ESTABLISHMENT.—To carry out the purposes of this title

there is established the Erie Canalway National Heritage Corridor

in the State of New York.

(b) BOUNDARIES.—The boundaries of the Corridor shall include

those lands generally depicted on a map entitled ‘‘Erie Canalway

National Heritage Area’’ numbered ERIE/80,000 and dated October

2000. This map shall be on file and available for public inspection

in the appropriate office of the National Park Service, the office of

the Commission, and the office of the New York State Canal Corporation in Albany, New York.

(c) OWNERSHIP AND OPERATION OF THE NEW YORK STATE

CANAL SYSTEM.—The New York State Canal System shall continue

to be owned, operated, and managed by the State of New York.

SEC. 804. THE ERIE CANALWAY NATIONAL HERITAGE CORRIDOR COMMISSION.

(a) ESTABLISHMENT.—There is established the Erie Canalway

National Heritage Corridor Commission. The purpose of the Commission shall be—

(1) to work with Federal, State, and local authorities to develop and implement the Canalway Plan; and

(2) to foster the integration of canal-related historical, cultural, recreational, scenic, economic and community development initiatives within the Corridor.

(b) MEMBERSHIP.—The Commission shall be composed of 27

members as follows:

(1) The Secretary of the Interior, ex-officio or the Secretary’s

designee.

(2) 7 members, appointed by the Secretary after consideration of recommendations submitted by the Governor and other

appropriate officials, with knowledge and experience of the following agencies or those agencies’ successors: The New York

State Secretary of State, the New York State Department of Environment Conservation, the New York State Office of Parks,

Recreation and Historic Preservation, the New York State Department of Agriculture and Markets, the New York State Department of Transportation, and the New York State Canal

Corporation, and the Empire State Development Corporation.

(3) The remaining 19 members who reside within the Corridor and are geographically dispersed throughout the Corridor

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shall be from local governments and the private sector with

knowledge of tourism, economic and community development,

regional planning, historic preservation, cultural or natural resource management, conservation, recreation, and education or

museum services. These members will be appointed by the Secretary as follows—

(A) 11 members based on a recommendation from each

member of the United States House of Representatives

whose district shall encompass the Corridor. Each shall be

a resident of the district from which they shall be recommended.

(B) 2 members based on a recommendation from each

United States Senator from New York State.

(C) 6 members who shall be residents of any county

constituting the Corridor. One such member shall have

knowledge and experience of the Canal Recreationway

Commission.

(c) APPOINTMENTS AND VACANCIES.—Members of the Commission other than ex-officio members shall be appointed for terms of

3 years. Of the original appointments, 6 shall be for a term of 1

year, 6 shall be for a term of 2 years and 7 shall be for a term of

3 years. Any member of the Commission appointed for a definite

term may serve after expiration of the term until the successor of the

member is appointed. Any member appointed to fill a vacancy shall

serve for the remainder of the term for which the predecessor was

appointed. Any vacancy on the Commission shall be filled in the

same manner in which the original appointment was made.

(d) COMPENSATION.—Members of the Commission shall receive

no compensation for their service on the Commission. Members of

the Commission, other than employees of the State and Canal Corporation, while away from their homes or regular places of business

to perform services for the Commission, shall be allowed travel expenses, including per diem in lieu of subsistence, in the same manner as persons employed intermittently in Government service are

allowed under section 5703 of title 5, United States Code.

(e) ELECTION OF OFFICERS.—The Commission shall elect the

chairperson and the vice chairperson on an annual basis. The vice

chairperson shall serve as the chairperson in the absence of the

chairperson.

(f) QUORUM AND VOTING.—14 members of the Commission shall

constitute a quorum but a lesser number may hold hearings. Any

member of the Commission may vote by means of a signed proxy exercised by another member of the Commission, however, any member voting by proxy shall not be considered present for purposes of

establishing a quorum. For the transaction of any business or the

exercise of any power of the Commission, the Commission shall have

the power to act by a majority vote of the members present at any

meeting at which a quorum is in attendance.

(g) MEETINGS.—The Commission shall meet at least quarterly

at the call of the chairperson or 14 of its members. Notice of Commission meetings and agendas for the meeting shall be published in

local newspapers throughout the Corridor. Meetings of the Commission shall be subject to section 552b of title 5, United States Code

(relating to open meetings).

543

(h) POWERS OF THE COMMISSION.—To the extent that Federal

funds are appropriated, the Commission is authorized—

(1) to procure temporary and intermittent services and administrative facilities at rates determined to be reasonable by

the Commission to carry out the responsibilities of the Commission;

(2) to request and accept the services of personnel detailed

from the State of New York or any political subdivision, and to

reimburse the State or political subdivision for such services;

(3) to request and accept the services of any Federal agency

personnel, and to reimburse the Federal agency for such services;

(4) to appoint and fix the compensation of staff to carry out

its duties;

(5) to enter into cooperative agreements with the State of

New York, with any political subdivision of the State, or any

person for the purposes of carrying out the duties of the Commission;

(6) to make grants to assist in the preparation and implementation of the Canalway Plan;

(7) to seek, accept, and dispose of gifts, bequests, grants, or

donations of money, personal property, or services, received

from any source. For purposes of section 170(c) of the Internal

Revenue Code of 1986, any gift to the Commission shall be

deemed to be a gift to the United States;

(8) to assist others in developing educational, informational, and interpretive programs and facilities, and other such

activities that may promote the implementation of the

Canalway Plan;

(9) to hold hearings, sit and act at such times and places,

take such testimony, and receive such evidence, as the Commission may consider appropriate; the Commission may not issue

subpoenas or exercise any subpoena authority;

(10) to use the United States mails in the same manner as

other departments or agencies of the United States;

(11) to request and receive from the Administrator of General Services, on a reimbursable basis, such administrative support services as the Commission may request; and

(12) to establish such advisory groups as the Commission

deems necessary.

(i) ACQUISITION OF PROPERTY.—Except as provided for leasing

administrative facilities under subsection 804(h)(1), the Commission

may not acquire any real property or interest in real property.

(j) TERMINATION.—The Commission shall terminate on the day

occurring 10 years after the date of the enactment of this title.

SEC. 805. DUTIES OF THE COMMISSION.

(a) PREPARATION OF CANALWAY PLAN.—Not later than 3 years

after the Commission receives Federal funding for this purpose, the

Commission shall prepare and submit a comprehensive preservation

and management Canalway Plan for the Corridor to the Secretary

and the Governor for review and approval. In addition to the requirements outlined for the Canalway Plan in section 806, the

Canalway Plan shall incorporate and integrate existing federal,

state, and local plans to the extent appropriate regarding historic

544

preservation, conservation, education and interpretation, community

development, and tourism-related economic development for the Corridor that are consistent with the purpose of this title. The Commission shall solicit public comment on the development of the

Canalway Plan.

(b) IMPLEMENTATION OF CANALWAY PLAN.—After the Commission receives Federal funding for this purpose, and after review and

upon approval of the Canalway Plan by the Secretary and the Governor, the Commission shall—

(1) undertake action to implement the Canalway Plan so as

to assist the people of the State of New York in enhancing and

interpreting the historical, cultural, educational, natural, scenic, and recreational potential of the Corridor identified in the

Canalway Plan; and

(2) support public and private efforts in conservation and

preservation of the Canalway’s cultural and natural resources

and economic revitalization consistent with the goals of the

Canalway Plan.

(c) PRIORITY ACTIONS.—Priority actions which may be carried

out by the Commission under subsection 805(b), include the following:

(1) assisting in the appropriate preservation treatment of

the remaining elements of the original Erie Canal;

(2) assisting the State, and local governments, and nonprofit organizations in designing, establishing and maintaining

visitor centers, museums, and other interpretive exhibits in the

Corridor;

(3) assisting in the public awareness and appreciation for

the historic, cultural, natural, scenic, and recreational resources

and sites in the Corridor;

(4) assisting the State of New York, local governments, and

nonprofit organizations in the preservation and restoration of

any historic building, site, or district in the Corridor;

(5) encouraging, by appropriate means, enhanced economic

development in the Corridor consistent with the goals of the

Canalway Plan and the purposes of this title; and

(6) ensuring that clear, consistent signs identifying access

points and sites of interest are put in place in the Corridor.

(d) ANNUAL REPORTS AND AUDITS.—For any year in which Federal funds have been received under this title, the Commission shall

submit an annual report and shall make available an audit of all

relevant records to the Governor and the Secretary identifying its expenses and any income, the entities to which any grants or technical

assistance were made during the year for which the report was

made, and contributions by other parties toward achieving Corridor

purposes.

SEC. 806. CANALWAY PLAN.

(a) CANALWAY PLAN REQUIREMENTS.—The Canalway Plan

shall—

(1) include a review of existing plans for the Corridor, including the Canal Recreationway Plan and Canal Revitalization Program, and incorporate them to the extent feasible to ensure consistence with local, regional and state planning efforts;

545

(2) provide a thematic inventory, survey, and evaluation of

historic properties that should be conserved, restored, developed,

or maintained because of their natural, cultural, or historic significance within the Corridor in accordance with the regulations for the National Register of Historic Places;

(3) identify public and private-sector preservation goals and

strategies for the Corridor;

(4) include a comprehensive interpretive plan that identifies, develops, supports, and enhances interpretation and education programs within the Corridor that may include—

(A) research related to the construction and history of

the canals and the cultural heritage of the canal workers,

their families, those that traveled along the canals, the associated farming activities, the landscape, and the communities;

(B) documentation of and methods to support the perpetuation of music, art, poetry, literature and folkways associated with the canals; and

(C) educational and interpretative programs related to

the Erie Canalway developed in cooperation with State and

local governments, educational institutions, and nonprofit

institutions;

(5) include a strategy to further the recreational development of the Corridor that will enable users to uniquely experience the canal system;

(6) propose programs to protect, interpret and promote the

Corridor’s historical, cultural, recreational, educational, scenic

and natural resources;

(7) include an inventory of canal-related natural, cultural

and historic sites and resources located in the Area;

(8) recommend Federal, State, and local strategies and

policies to support economic development, especially tourism-related development and recreation, consistent with the purposes

of the Corridor;

(9) develop criteria and priorities for financial preservation

assistance;

(10) identify and foster strong cooperative relationships between the National Parks Service, the New York State Canal

Corporation, other Federal and State agencies, and nongovernmental organizations;

(11) recommend specific areas for development of interpretive, educational, and technical assistance centers associated

with the Corridor; and

(12) contain a program for implementation of the Canalway

Plan by all necessary parties.

(b) APPROVAL OF THE CANALWAY PLAN.—The Secretary and the

Governor shall approve or disapprove the Canalway Plan not later

than 90 days after receiving the Canalway Plan.

(c) CRITERIA.—The Secretary may not approve the plan unless

the Secretary finds that the plan, if implemented, would adequately

protect the significant historical, cultural, natural, and recreational

resources of the Corridor and consistent with such protection provide adequate and appropriate outdoor recreational opportunities

and economic activities within the Corridor. In determining whether

546

or not to approve the Canalway Plan, the Secretary shall consider

whether—

(1) the Commission has afforded adequate opportunity, including public hearings, for public and governmental involvement in the preparation of the Canalway Plan; and

(2) the Secretary has received adequate assurances from the

Governor and appropriate state officials that the recommended

implementation program identified in the plan will be initiated

within a reasonable time after the date of approval of the

Canalway Plan and such program will ensure effective implementation of State and local aspects of the Canalway Plan.

(d) DISAPPROVAL OF CANALWAY PLAN.—If the Secretary or the

Governor do not approve the Canalway Plan, the Secretary or the

Governor shall advise the Commission in writing within 90 days

the reasons therefore and shall indicate any recommendations for

revisions. Following completion of any necessary revisions of the

Canalway Plan, the Secretary and the Governor shall have 90 days

to either approve or disapprove of the revised Canalway Plan.

(e) AMENDMENTS TO CANALWAY PLAN.—The Secretary and the

Governor shall review substantial amendments to the Canalway

Plan. Funds appropriated pursuant to this title may not be expended to implement the changes made by such amendments until

the Secretary and the Governor approve the amendments.

SEC. 807. DUTIES OF THE SECRETARY.

(a) IN GENERAL.—The Secretary is authorized to assist the

Commission in the preparation of the Canalway Plan.

(b) TECHNICAL ASSISTANCE.—Pursuant to an approved

Canalway Plan, the Secretary is authorized to enter into cooperative

agreements with, provide technical assistance to and award grants

to the Commission to provide for the preservation and interpretation

of the natural, cultural, historical, recreational, and scenic resources

of the Corridor, if requested by the Commission.

(c) EARLY ACTIONS.—Prior to approval of the Canalway Plan,

with the approval of the Commission, the Secretary may provide

technical and planning assistance for early actions that are important to the purposes of this title and that protect and preserve resources.

(d) CANALWAY PLAN IMPLEMENTATION.—Upon approval of the

Canalway Plan, the Secretary is authorized to implement those activities that the Canalway Plan has identified that are the responsibility of the Secretary or agent of the Secretary to undertake in the

implementation of the Canalway Plan.

(e) DETAIL.—Each fiscal year during the existence of the Commission and upon the request of the Commission, the Secretary

shall detail to the Commission, on a nonreimbursable basis, 2 employees of the Department of the Interior to enable the Commission

to carry out the Commission’s duties with regard to the preparation

and approval of the Canalway Plan. Such detail shall be without

interruption or loss of civil service status, benefits, or privileges.

SEC. 808. DUTIES OF OTHER FEDERAL ENTITIES.

Any Federal entity conducting or supporting any activity directly affecting the Corridor, and any unit of government acting

547

pursuant to a grant of Federal funds or a Federal permit or agreement conducting or supporting such activities may—

(1) consult with the Secretary and the Commission with respect to such activities;

(2) cooperate with the Secretary and the Commission in

carrying out their duties under this title and coordinate such

activities with the carrying out of such duties; and

(3) conduct or support such activities in a manner consistent with the Canalway Plan unless the Federal entity, after

consultation with the Secretary and the Commission, determines there is no practicable alternative.

SEC. 809. SAVINGS PROVISIONS.

(a) AUTHORITY OF GOVERNMENTS.—Nothing in this title shall

be construed to modify, enlarge, or diminish any authority of the

Federal, State, or local governments to regulate any use of land as

provided for by law or regulation.

(b) ZONING OR LAND.—Nothing in this title shall be construed

to grant powers of zoning or land use to the Commission.

(c) LOCAL AUTHORITY AND PRIVATE PROPERTY.—Nothing in this

title shall be construed to affect or to authorize the Commission to

interfere with—

(1) the rights of any person with respect to private property;

(2) any local zoning ordinance or land use plan of the State

of New York or political subdivision thereof; or

(3) any State or local canal related development plans including but not limited to the Canal Recreationway Plan and

the Canal Revitalization Program.

(d) FISH AND WILDLIFE.—The designation of the Corridor shall

not be diminish the authority of the State of New York to manage

fish and wildlife, including the regulation of fishing and hunting

within the Corridor.

SEC. 810. AUTHORIZATION OF APPROPRIATIONS.

(a) IN GENERAL.—

(1) CORRIDOR.—There is authorized to be appropriated for

the Corridor not more than $1,000,000 for any fiscal year. Not

more than a total of $10,000,000 may be appropriated for the

Corridor under this title.

(2) MATCHING REQUIREMENT.—Federal funding provided

under this paragraph may not exceed 50 percent of the total

cost of any activity carried out with such funds. The non-Federal share of such support may be in the form of cash, services,

or in-kind contributions, fairly valued.

(b) OTHER FUNDING.—In addition to the sums authorized in

subsection (a), there are authorized to be appropriated to the Secretary of the Interior such sums as are necessary for the Secretary

for planning and technical assistance.

TITLE IX—LAW ENFORCEMENT PAY EQUITY

SEC. 901. SHORT TITLE

This title may be cited as the ‘‘Law Enforcement Pay Equity Act

of 2000’’.

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SEC. 902. ESTABLISHMENT OF UNIFORM SALARY SCHEDULE FOR

UNITED STATES SECRET SERVICE UNIFORMED DIVISION

AND UNITED STATES PARK POLICE.

(a) IN GENERAL.—Section 501(c)(1) of the District of Columbia

Police and Firemen’s Salary Act of 1958 (sec. 4–416(c)(1), DC Code)

is amended to read as follows:

‘‘(c)(1) The annual rates of basic compensation of officers and

members of the United States Secret Service Uniformed Division

and the United States Park Police, serving in classes corresponding

or similar to those in the salary schedule in section 101, shall be

fixed in accordance with the following schedule of rates:

‘‘Salary class

and title Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7

Time

between steps

52 weeks 104 weeks

Years in

service

123579

1: Private ..... 32,623 34,587 36,626 38,306 41,001 43,728 45,407

3: Detective .. 42,378 44,502 46,620 48,746 50,837

4: Sergeant .. 46,151 48,446 50,746 53,056

5: Lieutenant 1 ......... 50,910 53,462 56,545

7: Captain 1 59,802 62,799

8: Inspector/

Major 1 ..... 69,163 72,760

9: Deputy

Chief 1 ...... 79,768 85,158

10: Assistant

Chief 2

11: Chief,

United

States Secret Service Uniformed Division,

United

States

Park Police 3

1The 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. 2The 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. 3The 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

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‘‘Salary class

and title Step 8 Step 9 Step 10 Step 11 Step 12 Step 13 Step 14

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

1The 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. 2The 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. 3The rate of basic pay for positions in Salary Class 11 will be equal to the rate of pay for level

V of the Executive Schedule.

(b) FREEZE OF CURRENT RATE FOR LOCALITY-BASED COMPARABILITY ADJUSTMENTS.—Notwithstanding any other provision of

law, including this title or any provision of law amended by this

title, no officer or member of the United States Secret Service Uniformed Division or the United States Park Police may be paid locality pay under section 5304 or section 5304a of title 5, United States

Code, at a percentage rate for the applicable locality in excess of the

rate in effect for pay periods during calendar year 2000.

(c) CONFORMING AMENDMENTS.—

(1) APPLICATION OF PROVISIONS TO PARK POLICE.—Section

501(c) of such Act (sec. 4–416(c), DC Code) is amended—

(A) in paragraph (2), by striking ‘‘Treasury’’ and inserting the following: ‘‘Treasury, and the annual rates of basic

compensation of officers and members of the United States

Park Police shall be adjusted by the Secretary of the Interior,’’;

(B) in paragraph (5), by inserting after ‘‘Uniformed Division’’ the following: ‘‘or officers and members of the

United States Park Police’’;

(C) in paragraph (6)(A), by inserting after ‘‘Uniformed

Division’’ the following: ‘‘or the United States Park Police’’;

and

(D) in paragraph (7)(A), by inserting after ‘‘Uniformed

Division’’ the following: ‘‘or the United States Park Police’’.

(2) TERMINATION OF CURRENT ADJUSTMENT AUTHORITY.—

Section 501(b) of such Act (sec. 4–416(b), DC Code) is amended

by adding at the end the following new paragraph:

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‘‘(4) This subsection shall not apply with respect to any pay period for which the salary schedule under subsection (c) applies to

the United States Park Police.’’.

SEC. 903. REVISION OF CAPS ON MAXIMUM COMPENSATION.

(a) ANNUAL SALARY UNDER SCHEDULE.—Section 501(c)(2) of the

District of Columbia Police and Firemen’s Salary Act of 1958 (sec.

4–416(c)(2), DC Code) is amended by striking the period at the end

and inserting the following: ‘‘, except that in no case may the annual

rate of basic compensation for any such officer or member exceed the

rate of basic pay payable for level IV of the Executive Schedule contained in subchapter II of chapter 53 of title 5, United States Code.’’.

(b) REPEAL OF CAP ON COMBINED BASIC PAY AND LONGEVITY

PAY.—Section 501(c) of such Act (sec. 4–416(c), DC Code) is amended by striking paragraph (4).

(c) LIMITATION ON PAY PERIOD EARNINGS FOR COMP TIME.—

Section 1(h) of the Act entitled ‘‘An Act to provide a five-day week

for officers and members of the Metropolitan Police force, the United

States Park Police force, and the White House Police force, and for

other purposes’’, approved August 15, 1950 (sec. 4–1104(h), DC

Code), is amended—

(1) in paragraphs (1) and (2), by striking ‘‘Metropolitan Police force; or of the Fire Department of the District of Columbia;

or of the United States Park Police’’ each place it appears and

inserting ‘‘Metropolitan Police force or of the Fire Department

of the District of Columbia’’; and

(2) in paragraph (3), by inserting after ‘‘United States Secret Service Uniformed Division’’ each place it appears the following: ‘‘or of the United States Park Police’’.

SEC. 904. DETERMINATION OF SERVICE STEP ADJUSTMENTS.

(a) METHOD FOR DETERMINATION OF ADJUSTMENTS.—Section

303(a) of the District of Columbia Police and Firemen’s Salary Act

of 1958 (sec. 4–412(a), DC Code) is amended—

(1) in the matter preceding paragraph (1), by ‘‘Each’’ and

inserting ‘‘Except as provided in paragraph (5), each’’; and

(2) by adding at the end the following new paragraph:

‘‘(5) Each officer and member of the United States Secret

Service Uniformed Division and the United States Park Police

with a current performance rating of ‘satisfactory’ or better,

shall have a service step adjustment in the following manner:

‘‘(A) Each officer and member in service step 1, 2, or

3 shall be advanced in compensation successively to the

next higher service step at the beginning of the 1st pay period immediately subsequent to the completion of 52 calendar weeks of active service in the officer’s or member’s

service step.

‘‘(B) Each officer and member in service step 4, 5, 6, 7,

8, or 9 shall be advanced in compensation successively to

the next higher service step at the beginning of the 1st pay

period immediately subsequent to the completion of 104 calendar weeks of active service in the officer’s or member’s

service step.

‘‘(C) Each officer and member in service step 10 shall

be advanced in compensation successively to the next higher

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service step at the beginning of the 1st pay period immediately subsequent to the completion of 156 calendar weeks

of active service in the officer’s or member’s service step.

‘‘(D) Each officer and member in service steps 11 or 12,

or 13 shall be advanced in compensation successively to the

next higher service step at the beginning of the 1st pay period immediately subsequent to the completion of 208 calendar weeks of active service in the officer’s or member’s

service step.’’.

(b) USE OF TOTAL CREDITABLE SERVICE TO DETERMINE STEP

PLACEMENT.—Section 304 of such Act (sec. 4–413, DC Code) is

amended—

(1) in subsection (a), by striking ‘‘(b)’’ and inserting ‘‘(b) or

(c)’’; and

(2) by adding at the end the following new subsection:

‘‘(c)(1) Each officer and member of the United States Secret

Service Uniformed Division or the United States Park Police who is

promoted or transferred to a higher salary shall receive basic compensation in accordance with the officer’s or member’s total creditable service.

‘‘(2) For purposes of this subsection, an officer’s or member’s

creditable service is any police service in pay status with the United

States Secret Service Uniformed Division, United States Park Police, or Metropolitan Police Department.’’.

(c) CONFORMING AMENDMENT.—Section 401(a) of such Act (sec.

4–415(a), DC Code) is amended by adding at the end the following

new paragraph:

‘‘(4) This subsection shall not apply to officers and members of

the United States Secret Service Uniformed Division or the United

States Park Police.’’.

SEC. 905. CONVERSION TO NEW SALARY SCHEDULE.

(a) IN GENERAL.— (1) DETERMINATION OF RATES OF BASIC PAY.—Effective on

the 1st day of the 1st pay period beginning six months after the

date of enactment of this Act, the Secretary of the Treasury

shall fix the rates of basic pay for officers and members of the

United States Secret Service Uniformed Division, and the Secretary of the Interior shall fix the rates of basic pay for officers

and members of the United States Park Police, in accordance

with this subsection.

(2) PLACEMENT ON REVISED SALARY SCHEDULE.—

(A) IN GENERAL.—Each officer and member shall be

placed in and receive basic compensation at the corresponding scheduled service step of the salary schedule

under section 501(c) of the District of Columbia Police and

Firemen’s Salary Act of 1958 (as amended by section

902(a)) in accordance with the member’s total years of creditable service, receiving credit for all service step adjustments. If the scheduled rate of pay for the step to which the

officer or member would be assigned in accordance with

this paragraph is lower than the officer’s or member’s salary immediately prior to the enactment of this paragraph,

the officer or member will be placed in and receive compensation at the next higher service step.

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(B) CREDIT FOR INCREASES DURING TRANSITION.—Each

member whose position is to be converted to the salary

schedule under section 501(b) of the District of Columbia

Police and Firemen’s Salary Act of 1958 (as amended by

subsection (a)) and who, prior to the effective date of this

section has earned, but has not been credited with, an increase in his or her rate of pay shall be afforded that increase before such member is placed in the corresponding

service step in the salary schedule under section 501(b).

(C) CREDITABLE SERVICE DESCRIBED.—For purposes of

this paragraph, an officer’s or member’s creditable service

is any police service in pay status with the United States

Secret Service Uniformed Division, United States Park Police, or Metropolitan Police Department.

(b) HOLD HARMLESS FOR CURRENT TOTAL COMPENSATION.— Notwithstanding any other provision of law, if the total rate of compensation for an officer or employee for any pay period occurring

after conversion to the salary schedule pursuant to subsection (a)

(determined by taking into account any locality-based comparability

adjustments, longevity pay, and other adjustments paid in addition

to the rate of basic compensation) is less than the officer’s or employee’s total rate of compensation (as so determined) on the date of

enactment, the rate of compensation for the officer or employee for

the pay period shall be equal to—

(1) the rate of compensation on the date of enactment (as

so determined); increased by

(2) a percentage equal to 50 percent of sum of the percentage adjustments made in the rate of basic compensation under

section 501(c) of the District of Columbia Police and Firemen’s

Salary Act of 1958 (as amended by subsection (a)) for pay periods occurring after the date of enactment and prior to the pay

period involved.

(c) CONVERSION NOT TREATED AS TRANSFER OR PROMOTION.— The conversion of positions and individuals to appropriate classes

of the salary schedule under section 501(c) of the District of Columbia Police and Firemen’s Salary Act of 1958 (as amended by section

902(a)) and the initial adjustments of rates of basic pay of those positions and individuals in accordance with subsection (a) shall not

be considered to be transfers or promotions within the meaning of

section 304 of the District of Columbia Police and Firemen’s Salary

Act of 1958 (sec. 4–413, DC Code).

(d) TRANSFER OF CREDIT FOR SATISFACTORY SERVICE.—Each

individual whose position is converted to the salary schedule under

section 501(c) of the District of Columbia Police and Firemen’s Salary Act of 1958 (as amended by section 902(a)) in accordance with

subsection (a) shall be granted credit for purposes of such individual’s first service step adjustment under the salary schedule in such

section 501(c) for all satisfactory service performed by the individual

since the individual’s last increase in basic pay prior to the adjustment under that section.

(e) ADJUSTMENT TO TAKE INTO ACCOUNT GENERAL SCHEDULE

ADJUSTMENTS DURING TRANSITION.—The rates provided under the

salary schedule under section 501(c) of the District of Columbia Police and Firemen’s Salary Act of 1958 (as amended by section

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902(a)) shall be increased by the percentage of any annual adjustment applicable to the General Schedule authorized under section

5303 of title 5, United States Code, which takes effect during the period which begins on the date of the enactment of this Act and ends

on the 1st day of the 1st pay period beginning six months after the

date of enactment of this Act.

(f) CONVERSION NOT TREATED AS SALARY INCREASE FOR PURPOSES OF CERTAIN PENSIONS AND ALLOWANCES.—The conversion of

positions and individuals to appropriate classes of the salary schedule under section 501(c) of the District of Columbia Police and Firemen’s Salary Act of 1958 (as amended by section 2(a)) and the initial adjustments of rates of basic pay of those positions and individuals in accordance with subsection (a) shall not be treated as an increase in salary for purposes of section 3 of the Act entitled ‘‘An Act

to provide increased pensions for widows and children of deceased

members of the Police Department and the Fire Department of the

District of Columbia’’, approved August 4, 1949 (sec. 4–604, DC

Code), or section 301 of the District of Columbia Police and Firemen’s Salary Act of 1953 (sec. 4–605, DC Code).

SEC. 906. PAY ADJUSTMENTS FOR CERTAIN POSITIONS.

(a) TECHNICIAN DUTY.—Section 302 of the District of Columbia

Police and Firemen’s Salary Act of 1958 (sec. 4–411, DC Code) is

amended—

(1) in subsection (b), by striking ‘‘$810 per annum’’ and inserting the following: ‘‘$810 per annum, except in the case of an

officer or member of the United States Secret Service Uniformed

Division or the United States Park Police, who shall receive a

per annum amount equal to 6 percent of the sum of such officer’s or member’s rate of basic compensation plus locality pay

adjustments’’;

SEC. 907. CONFORMING PROVISIONS RELATING TO FEDERAL LAW ENFORCEMENT PAY REFORM ACT.

(a) TERMINATION OF EXISTING SPECIAL SALARY RATES AND ADJUSTMENTS.—Beginning on the effective date of this Act—

(1) no existing special salary rates shall be authorized for

members of the United States Park Police under section 5305

of title 5, United States Code (or any previous similar provision

of law); and

(2) no special rates of pay or special pay adjustments shall

be applicable to members of the United States Park Police pursuant to section 405 of the Federal Law Enforcement Pay Reform Act of 1990.

(b) CONFORMING AMENDMENTS.—(1) Section 405(b) of the Federal Law Enforcement Pay Reform Act of 1990 (5 U.S.C. 5303 note)

is amended to read as follows:

‘‘(b) This subsection applies with respect to any—

‘‘(1) special agent within the Diplomatic Security Service;

‘‘(2) probation officer (referred to in section 3672 of title 18,

United States Code); or

‘‘(3) pretrial services officer (referred to in section 3153 of

title 18, United States Code).’’.

(2) Section 405(c) of such Act (5 U.S.C. 5303 note) is amended

to read as follows:

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‘‘(c) For purposes of this section, the term ‘appropriate agency

head’ means—

‘‘(1) with respect to any individual under subsection (b)(1),

the Secretary of State; or

‘‘(2) with respect to any individual under subsection (b)(2)

or (b)(3), the Director of the Administrative Office of the United

States Courts.’’.

SEC. 908. SERVICE LONGEVITY PAYMENTS FOR METROPOLITAN POLICE DEPARTMENT.

(a) INCLUSION OF SERVICE LONGEVITY PAYMENTS IN AMOUNT

OF FEDERAL BENEFIT PAYMENTS MADE TO METROPOLITAN POLICE

DEPARTMENT OFFICERS AND MEMBERS.—Section 11012 of the District of Columbia Retirement Protection Act of 1997 (Public Law

105–33; 111 Stat. 718; D.C. Code, sec. 1–762.2) is amended by adding at the end the following new subsection:

‘‘(e) TREATMENT OF INCREASES IN CERTAIN POLICE SERVICE

LONGEVITY PAYMENTS.—For purposes of subsection (a), in determining the amount of a Federal benefit payment made to an officer

or member of the Metropolitan Police Department, the benefit payment to which the officer or member is entitled under the District

Retirement Program shall include any amounts which would have

been included in the benefit payment under such Program if the

amendments made by the Police Recruiting and Retention Enhancement Amendment Act of 1999 had taken effect prior to the freeze

date.’’.

(b) CONFORMING AMENDMENT.—Section 11003(5) of such Act

(Public Law 105–33; 111 Stat. 717; D.C. Code, sec. 1–761.2(5)) is

amended by inserting after ‘‘except as’’ the following: ‘‘provided

under section 11012(e) and as’’.

(c) EFFECTIVE DATE.—The amendments made by this section

shall apply with respect to Federal benefit payments made after the

date of the enactment of this Act.

SEC. 909. EFFECTIVE DATE.

Except as provided in section 908(c), this title and the amendments made by this title shall become effective on the 1st day of the

1st pay period beginning 6 months after the date of enactment.

TITLE X—DEPARTMENT OF HOUSING AND URBAN

DEVELOPMENT

ADMINISTRATIVE PROVISIONS

SEC. 1001. Section 206(d) of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 2000 (42 U.S.C. 12701 note) is amended—

(1) in paragraph (1), by striking ‘‘V’’ and inserting ‘‘III’’;

and

(2) in paragraph (4), by striking ‘‘reimbursable’’ and inserting ‘‘non-reimbursable’’.

SEC. 1002. For purposes of Part 2, Subpart B of the Federal

Housing Enterprises Financial Safety and Soundness Act of 1992

(Public Law 102–550), notwithstanding any other provision of law

or regulation, for purposes of measuring the extent of compliance

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retary of Housing and Urban Development shall assign, in the case

of the Federal Home Loan Mortgage Corporation, 1.35 units of credit toward achievement of each housing goal for each unit of multifamily housing (excepting units located in properties having between

five and fifty units) qualifying as affordable under such housing

goal.

SEC. 1003. Notwithstanding any other provision of law, neither

the City of Toledo, Ohio, nor the Secretary of Housing and Urban

Development (HUD) is required to enforce any requirements associated with Housing Development Grant number 00H006H6402 provided to the City of Toledo, Ohio, that prohibit or restrict the conversion of the rental units in the Beacon Place project to condominium ownership: Provided, that the City of Toledo and the Secretary of HUD are authorized to take any actions necessary to cause

any such prohibition or restriction to be removed from the appropriate land records and otherwise terminated: Provided further,

That converted units shall remain available as rental housing to

those persons, including low- and very-low income persons who

presently reside in the units: Provided further, That the conversion

proposal for Beacon Place apartments shall not reduce the number

of affordable housing units in Toledo: Provided further, That any

and all proceeds from such conversion are used to retire debt associated with the Beacon Place project or to rehabilitate the properties

known as the Cubbon Properties.

SEC. 1004. The Comptroller General of the United States shall

conduct a study on the following topics—

(a)(1) The adequacy of the capital structure of the Federal

Home Loan Bank (FHLB) System as it relates to the risks posed

by: (A) the traditional advances business of the FHLB System;

(B) the expanded collateral provisions and permissible uses of

advances under the Gramm-Leach-Bliley Act of 1999; and (C)

the MPF, and other programs providing for the direct acquisition of mortgages. The analysis should examine the credit risk,

interest rate risk, and operations risk associated with each

structure;

(2) The risks associated with further growth in the direct

acquisition of mortgages by the Federal Home Loan Bank System; and

(3) A comparison of the risk-based capital standard proposed by the Federal Housing Finance Board for the Federal

Home Loan Bank System to the standard proposed by the Office

of Federal Housing Enterprise Oversight for the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation.

(b) Not later than six months after the date of the enactment of this Act, the Comptroller General shall submit to the

Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Banking and Financial Services of

the House of Representatives a report on the study required

under subsection (a).

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TITLE XI—DEPARTMENT OF THE TREASURY

ADMINISTRATIVE PROVISION

SEC. 1101. HONORING THE NAVAJO CODE TALKERS.

(a) Congress finds that—

(1) On December 7, 1941, the Japanese Empire attacked

Pearl Harbor and war was declared by Congress the following

day;

(2) The military code, developed by the United States for

transmitting messages, had been deciphered by the Japanese,

and a search by United States Intelligence was made to develop

new means to counter the enemy;

(3) The United States government called upon the Navajo

Nation to support the military effort by recruiting and enlisting

twenty-nine Navajo men to serve as Marine Corps Radio Operators;

(4) the number of Navajo enlistees later increased to more

than three hundred and fifty;

(5) at the time, the Navajos were often treated as secondclass citizens, and they were a people who were discouraged

from using their own native language;

(6) the Navajo Marine Corps Radio Operators, who became

known as the ‘‘Navajo Code Talkers’’, were used to develop a

code using their native language to communicate military messages in the Pacific;

(7) to the enemy’s frustration, the code developed by these

Native Americans proved to be unbreakable, and was used extensively throughout the Pacific theater;

(8) the Navajo language, discouraged in the past, was instrumental in developing the most significant and successful

military code of the time;

(9) at Iwo Jima alone, the Navajo Code Talkers passed over

800 error-free messages in a 48-hour period;

(10) Use of the Navajo Code was so successful, that—

(A) military commanders credited it in saving the lives

of countless American soldiers and in the success of the engagements of the United States in the battles of Guadalcanal, Tarawa, Saipan, Iwo Jima, and Okinawa;

(B) some Code Talkers were guarded by fellow marines,

whose role was to kill them in case of imminent capture by

the enemy; and

(C) the Navajo code was kept secret for 23 years after

the end of World War II;

(11) following the conclusion of World War II, the Department of Defense maintained the secrecy of the Navajo code until

it was declassified in 1968; and

(12) only then did a realization of the sacrifice and valor

of these brave Native Americans emerge from history.

(b)(1) To express recognition by the United States and its citizens in honoring the Navajo Code Talkers, who distinguished themselves in performing a unique, highly successful communications operation that greatly assisted in saving countless lives and hastening

the end of World War II in the Pacific, the President is authorized—

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(A) to award to each of the original twenty-nine Navajo

Code Talkers, or a surviving family member, on behalf of the

Congress, a gold medal of appropriate design, honoring the

Navajo Code Talkers; and

(B) to award to each person who qualified as a Navajo

Code Talker (MOS 642), or a surviving family member, on behalf of the Congress, a silver medal of appropriate design, honoring the Navajo Code Talkers.

(2) For purposes of the awards authorized by paragraph (l), the

Secretary of the Treasury (in this section referrd to as the ‘‘Secretary’’) shall strike gold and silver medals with suitable emblems,

devices, and inscriptions, to be determined by the Secretary.

(c) The Secretary may strike and sell duplicates in bronze of the

medals struck pursuant to this section, under such regulations as

the Secretary may prescribe, and a price sufficient to cover the costs

thereof, including labor, materials, dies, use of machinery, and overhead expenses, and the cost of the medals.

(d) The medals struck pursuant to this section are national

medals for purposes of chapter 51, of title 31, United States Code.

(e)(1) There is authorized to be charged against the United

States Mint Public Enterprise Fund, such sums as may be necessary

to pay for the costs of the medals authorized by this section.

(2) Amounts received from the sale of duplicate medals under

this section shall be deposited in the United States Mint Public Enterprise Fund.

TITLE XII—ENVIRONMENTAL PROTECTION AGENCY

ADMINISTRATIVE PROVISION

SEC. 1201. ABOVEGROUND STORAGE TANK GRANT PROGRAM.

(a) DEFINITIONS.—In this provision:

(1) ABOVEGROUND STORAGE TANK.—The term ‘‘aboveground

storage tank’’ means any tank or combination of tanks (including any connected pipe)—

(A) that is used to contain an accumulation of regulated substances; and

(B) the volume of which (including the volume of any

connected pipe) is located wholly above the surface of the

ground.

(2) ADMINISTRATOR.—The term ‘‘Administrator’’ means the

Administrator of the Environmental Protection Agency.

(3) DENALI COMMISSION.—The term ‘‘Denali Commission’’

means the commission established by section 303(a) of the

Denali Commission Act of 1998 (42 U.S.C. 3121 note).

(4) FEDERAL ENVIRONMENTAL LAW.—The term ‘‘Federal environmental law’’ means—

(A) the Oil Pollution Control Act of 1990 (33 U.S.C.

2701 et seq.);

(B) the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et

seq.);

(C) the Soild Waste Disposal Act (42 U.S.C. 6901 et

seq.); or

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(D) the Federal Water Pollution Control Act (33 U.S.C.

1251 et seq.); or

(E) any other Federal law that is applicable to the release into the environment of a regulated substance, as determined by the Administrator.

(5) NATIVE VILLAGE.—The term ‘‘Native village’’ has the

meaning given the term in section 11(b) in Public Law 92–203

(85 Stat. 688).

(6) PROGRAM.—The term ‘‘program’’ means the Aboveground Storage Tank Grant Program established by subsection

(b)(1).

(7) REGULATED SUBSTANCE.—The term ‘‘regulated substance’’ has the meaning given the term in section 9001 of the

Solid Waste Disposal Act (42 U.S.C. 6991).

(8) STATE.—The term ‘‘State’’ means the State of Alaska.

(b) ESTABLISHMENT.— (1) IN GENERAL.—There is established a grant program to

be known as the ‘‘Aboveground Storage Tank Grant Program’’.

(2) GRANTS.—Under the program, the Administrator shall

award a grant to—

(A) the State, on behalf of a Native village; or

(B) the Denali Commission.

(c) USE OF GRANTS.—The State or the Denali Commission shall

use the funds of a grant under subsection (b) to repair, upgrade, or

replace 1 or more aboveground storage tanks that—

(1) leaks or poses an imminent threat of leaking, as certified by the Administrator, the Commandant of the Coast

Guard, or any other appropriate Federal or State agency (as determined by the Administrator); and

(2) is located in a Native village—

(A) the median household income of which is less than

80 percent of the median household income in the State;

(B) that is located—

(i) within the boundaries of—

(I) a unit of the National Park System;

(II) a unit of the National Wildlife Refuge System; or

(III) a National Forest; or

(ii) on public land under the administrative jurisdiction of the Bureau of Land Management; or

(C) that receives payments from the Federal Government under chapter 69 of title 31, United States Code (commonly known as ‘‘payments in lieu of taxes’’).

(d) REPORTS.—Not later than 1 year after the date on which the

State or the Denali Commission receives a grant under subsection

(c), and annually thereafter, the State or the Denali Commission, as

the case may be, shall submit a report describing each project completed with grant funds and any projects planned for the following

year, to—

(1) the Administrator;

(2) the Committee on Resources of the House of Representatives;

(3) the Committee on Environment and Public Works of the

Senate;

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(4) the Committee on Appropriations of the House of Representatives; and

(5) the Committee on Appropriations of the Senate.

(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized

to be appropriated to carry out this Act, to remain available until

expended—

(1) $20,000,000 for year 2001; and

(2) such sums as are necessary for each fiscal year thereafter.

TITLE XIII—NATIONAL AERONAUTICS AND SPACE

ADMINISTRATION

ADMINISTRATIVE PROVISION

SEC. 1301. Of the proceeds in any fiscal year from the sale of

timber on Federal property at the John C. Stennis Space Center, or

on additional real property within the restricted easement area adjacent to the Center, any funds that are in excess of the amount necessary for the expenses of commonly accepted forest management

practices on such properties may be retained and used by the National Aeronautics and Space Administration for the acquisition

from willing sellers of up to a total of 500 acres of real property to

establish education and visitor programs and facilities that promote

and preserve the regional and national history of the area, including the contributions of Stennis Space Center, and, as necessary, for

wetlands mitigation.

TITLE XIV—CERTAIN ALASKAN CRUISE SHIP

OPERATIONS

SECTION 1401. PURPOSE.

The purpose of this Title is to—

(a) Ensure that cruise vessels operating in the waters of the Alexander Archipelago and the navigable waters of the United States

within the State of Alaska and within the Kachemak Bay National

Estuarine Research Reserve comply with all applicable environmental laws, including, but not limited to, the Federal Water Pollution Control Act, as amended (33 U.S.C. 1251 et seq.), the Act to

Prevent Pollution from Ships, as amended (33 U.S.C. 1901 et seq.),

and the protections contained within this Title.

(b) Ensure that cruise vessels do not discharge untreated sewage within the waters of the Alexander Archipelago, the navigable

waters of the United States in the State of Alaska, or within the

Kachemak Bay National Estuarine Research Reserve.

(c) Prevent the unregulated discharge of treated sewage and

graywater while in ports in the State of Alaska or traveling near the

shore in the Alexander Archipelago and the navigable waters of the

United States in the State of Alaska or within the Kachemak Bay

National Estuarine Research Reserve.

(d) Ensure that discharges of sewage and graywater from cruise

vessels operating in the Alexander Archipelago and the navigable

waters of the United States in the State of Alaska or within the

Kachemak Bay National Estuarine Research Reserve can be monitored for compliance with the requirements contained in this Title.

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SEC. 1402. APPLICABILITY.

(a) This Title applies to all cruise vessels authorized to carry

500 or more passengers for hire.

SEC. 1403. PROHIBITION ON DISCHARGE OF UNTREATED SEWAGE.

No person shall discharge any untreated sewage from a cruise

vessel into the waters of the Alexander Archipelago or the navigable

waters of the United States within the State of Alaska or within the

Kachemak Bay National Estuarine Research Reserve.

SEC. 1404. LIMITATIONS ON DISCHARGE OF TREATED SEWAGE OR

GRAYWATER.

(a) No person shall discharge any treated sewage or graywater

from a cruise vessel into the waters of the Alexander Archipelago or

the navigable waters of the United States within the State of Alaska

or within the Kachemak Bay National Estuarine Research Reserve

unless—

(1) the cruise vessel is underway and proceeding at a speed

of not less than six knots;

(2) the cruise vessel is not less than one nautical mile from

the nearest shore, except in areas designated by the Secretary,

in consultation with the State of Alaska;

(3) the discharge complies with all applicable cruise vessel

effluent standards established pursuant to this Title and any

other applicable law; and

(4) the cruise vessel is not in an area where the discharge

of treated sewage or graywater is prohibited.

(b) The Administrator, in consultation with the Secretary, may

promulgate regulations allowing the discharge of treated sewage or

graywater, otherwise prohibited under paragraphs (a)(1) and (a)(2)

of this section, where the discharge meets effluent standards determined by the Administrator as appropriate for discharges into the

marine environment. In promulgating such regulations, the Administrator shall take into account the best available scientific information on the environmental effects of the regulated discharges. The effluent discharge standards promulgated under this section shall, at

a minimum, be consistent with all relevant State of Alaska water

quality standards in force at the time of the enactment of this Title.

(c) Until such time as the Administrator promulgates regulations under paragraph (b) of this section, treated sewage and

graywater may be discharged from vessels subject to this Title in

circumstances otherwise prohibited under paragraphs (a)(1) and

(a)(2) of this section, provided that—

(1) the discharge satisfies the minimum level of effluent

quality specified in 40 CFR 133.102, as in effect on the date of

enactment of this Section;

(2) the geometric mean of the samples from the discharge

during any 30-day period does not exceed 20 fecal coliform/100

ml and not more than 10 percent of the samples exceed 40 fecal

coliform/100 ml;

(3) concentrations of total residual chlorine may not exceed

10.0 μg/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

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ferent days over a 30-day period, conducted in accordance with

the guidelines promulgated by the Administrator in 40 CFR

Part 136, which confirm that the water quality of the effluents

proposed for discharge is in compliance with paragraphs (1), (2)

and (3) of this subsection. To the extent not otherwise being

done by the owner, operator, master or other person in charge

of a cruise vessel pursuant to section 1406, the owner, operator,

master or other person in charge of a cruise vessel shall demonstrate continued compliance through periodic sampling. Such

sampling and test results shall be considered environmental

compliance records that must be made available for inspection

pursuant to section 1406(d) of this Title.

SEC. 1405. SAFETY EXCEPTION.

Sections 1403 and 1404 of this Title shall not apply to discharges made for the purpose of securing the safety of the cruise vessel or saving life at sea, provided that all reasonable precautions

have been taken for the purpose of preventing or minimizing the discharge.

SEC. 1406. INSPECTION AND SAMPLING REGIME.

(a) The Secretary shall incorporate into the commercial vessel

examination program an inspection regime sufficient to verify that

cruise vessels visiting ports in the State of Alaska or operating in

the waters of the Alexander Archipelago or the navigable waters of

the United States within the State of Alaska or within the

Kachemak Bay National Estuarine Research Reserve are in full

compliance with this Title, the Federal Water Pollution Control Act,

as amended, and any regulations issued thereunder, other applicable Federal laws and regulations, and all applicable international

treaty requirements.

(b) The inspection regime shall, at a minimum, include—

(1) examination of environmental compliance records and

procedures;

(2) inspection of the functionality and proper operation of

installed equipment for abatement and control of any discharge;

(c) The inspection regime may—

(1) include unannounced inspections of any aspect of cruise

vessel operations, equipment or discharges pertinent to the

verification under subsection (a) of this section; and

(2) require the owner, operator or master, or other person

in charge of a cruise vessel subject to this Title to maintain and

produce a logbook detailing the times, types, volumes or flow

rates and locations of any discharges of sewage or graywater

under this Title.

(d) The inspection regime shall incorporate a plan for sampling

and testing cruise vessel discharges to ensure that any discharges

of sewage or graywater are in compliance with this Title, the Federal Water Pollution Control Act, as amended, and any other applicable laws and regulations, and may require the owner, operator or

master, or other person in charge of a cruise vessel subject to this

Title to conduct such samples or tests, and to produce any records

of such sampling or testing at the request of the Secretary or Administrator.

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SEC. 1407. CRUISE VESSEL EFFLUENT STANDARDS.

Pursuant to this Title and the authority of the Federal Water

Pollution Control Act, as amended, the Administrator may promulgate effluent standards for treated sewage and graywater from

cruise vessels operating in the waters of the Alexander Archipelago

or the navigable waters of the United States within the State of

Alaska or within the Kachemak Bay National Estuarine Research

Reserve. Regulations implementing such standards shall take into

account the best available scientific information on the environmental effects of the regulated discharges and the availability of

new technologies for wastewater treatment. Until such time as the

Administrator promulgates such effluent standards, treated sewage

effluent discharges shall not have a fecal coliform bacterial count of

greater than 200 per 100 milliliters nor suspended solids greater

than 150 milligrams per liter.

SEC. 1408. REPORTS.

(a) Any owner, operator or master, or other person in charge of

a cruise vessel who has knowledge of a discharge from the cruise

vessel in violation of section 1403 or 1404 or pursuant to section

1405 of this Title, or any regulations promulgated thereunder, shall

immediately report that discharge to the Secretary, who shall provide a copy to the Administrator upon request.

(b) The Secretary may prescribe the form of reports required

under this section.

SEC. 1409. ENFORCEMENT.

(a) ADMINISTRATIVE PENALTIES.—

(1) VIOLATIONS.—Any person who violates section 1403,

1404, 1408, or 1413 of this Title, or any regulations promulgated pursuant to this Title may be assessed a class I or class

II civil penalty by the Secretary or the Administrator.

(2) CLASSES OF PENALTIES.— (A) CLASS I.—The amount of a class I civil penalty under this section may not exceed $10,000 per violation, except that the maximum amount of any class I civil penalty

under this section shall not exceed $25,000. Before assessing a civil penalty under this clause, the Secretary or Administrator, as the case may be, shall give to the person to

be assessed such penalty written notice of the Secretary’s or

Administrator’s proposal to assess the penalty and the opportunity to request, within 30 days of the date the notice

is received by such person, a hearing on the proposed penalty. Such hearing shall not be subject to section 554 or 556

of Title 5, but shall provide a reasonable opportunity to be

heard and to present evidence.

(B) CLASS II.—The amount of a class II civil penalty

under this section may not exceed $10,000 per day for each

day during which the violation continues, except that the

maximum amount of any class II civil penalty under this

section shall not exceed $125,000. Except as otherwise provided in this subsection, a class II civil penalty shall be assessed and collected in the same manner, and subject to the

same provisions as in the case of civil penalties assessed

and collected after notice and an opportunity for a hearing

563

on the record in accordance with section 554 of Title 5,

United States Code. The Secretary and Administrator may

issue rules for discovery procedures for hearings under this

paragraph.

(3) RIGHTS OF INTERESTED PERSONS.— (A) PUBLIC NOTICE.—Before issuing an order assessing

a class II civil penalty under this section, the Secretary or

Administrator, as the case may be, shall provide public notice of and reasonable opportunity to comment on the proposed issuance of each order.

(B) PRESENTATION OF EVIDENCE.—Any person who

comments on a proposed assessment of a class II civil penalty under this section shall be given notice of any hearing

held under this paragraph and of the order assessing such

penalty. In any hearing held under this paragraph, such

person shall have a reasonable opportunity to be heard and

present evidence.

(C) RIGHTS OF INTERESTED PERSONS TO A HEARING.— If no hearing is held under subsection (2) before issuance

of an order assessing a class II civil penalty under this section, any person who commented on the proposed assessment may petition, within 30 days after the issuance of

such order, the Administrator or Secretary, as the case may

be, to set aside such order and to provide a hearing on the

penalty. If the evidence presented by the petitioner in support of the petition is material and was not considered in

the issuance of the order, the Administrator or Secretary

shall immediately set aside such order and provide a hearing in accordance with subsection (2)(B). If the Administrator or Secretary denies a hearing under this clause, the

Administrator or Secretary shall provide to the petitioner,

and publish in the Federal Register, notice of and the reasons for such denial.

(4) FINALITY OF ORDER.—An order assessing a class II civil

penalty under this paragraph shall become final 30 days after

its issuance unless a petition for judicial review is filed under

subparagraph (6) or a hearing is requested under subsection

(3)(C). If such a hearing is denied, such order shall become

final 30 days after such denial.

(5) EFFECT OF ACTION ON COMPLIANCE.—No action by the

Administrator or Secretary under this paragraph shall affect

any person’s obligation to comply with any section of this Title.

(6) JUDICIAL REVIEW.—Any person against whom a civil

penalty is assessed under this paragraph or who commented on

the proposed assessment of such penalty in accordance with

subsection (3) may obtain review of such assessment—

(A) in the case of assessment of a class I civil penalty,

in the United States District Court for the District of Columbia or in the District of Alaska, or

(B) in the case of assessment of a class II civil penalty,

in United States Court of Appeals for the District of Columbia Circuit or for any other circuit in which such person resides or transacts business, by filing a notice of appeal in

such court within the 30-day period beginning on the date

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the civil penalty order is issued and by simultaneously

sending a copy of such notice by certified mail to the Administrator or Secretary, as the case may be, and the Attorney General. The Administrator or Secretary shall promptly file in such court a certified copy of the record on which

the order was issued. Such court shall not set aside or remand such order unless there is not substantial evidence in

the record, taken as a whole, to support the finding of a

violation or unless the Administrator’s or Secretary’s assessment of the penalty constitutes an abuse of discretion

and shall not impose additional civil penalties for the same

violation unless the Administrator’s or Secretary’s assessment of the penalty constitutes an abuse of discretion.

(7) COLLECTION.—If any person fails to pay an assessment

of a civil penalty—

(A) after the assessment has become final, or

(B) after a court in an action brought under subsection

(6) has entered a final judgment in favor of the Administrator or Secretary, as the case may be, the Administrator

or Secretary shall request the Attorney General to bring a

civil action in an appropriate district court to recover the

amount assessed (plus interest at currently prevailing rates

from the date of the final order or the date of the final

judgment, as the case may be). In such an action, the validity, amount, and appropriateness of such penalty shall not

be subject to review. Any person who fails to pay on a timely basis the amount of an assessment of a civil penalty as

described in the first sentence of this subparagraph shall be

required to pay, in addition to such amount and interest,

attorneys fees and costs for collection proceedings and a

quarterly nonpayment penalty for each quarter during

which such failure to pay persists. Such nonpayment penalty shall be in an amount equal to 20 percent of the aggregate amount of such person’s penalties and nonpayment

penalties which are unpaid as of the beginning of such

quarter.

(8) SUBPOENAS.—The Administrator or Secretary, as the

case may be, may issue subpoenas for the attendance and testimony of witnesses and the production of relevant papers, books,

or documents in connection with hearings under this section. In

case of contumacy or refusal to obey a subpoena issued pursuant to this subsection and served upon any person, the district

court of the United States for any district in which such person

is found, resides, or transacts business, upon application by the

United States and after notice to such person, shall have jurisdiction to issue an order requiring such person to appear and

give testimony before the Administrator or Secretary or to appear and produce documents before the Administrator or Secretary, or both, and any failure to obey such order of the court

may be punished by such court as a contempt thereof.

(b) CIVIL PENALTIES.—

(1) GENERALLY.—Any person who violates section 1403,

1404, 1408 or 1413 of this Title, or any regulations promulgated pursuant to this Title shall be subject to a civil penalty

565

not to exceed $25,000 per day for each violation. Each day a

violation continues constitutes a separate violation.

(2) JURISDICTION.—An action to impose a civil penalty

under this section may be brought in the district court of the

United States for the district in which the defendant is located,

resides, or transacts business, and such court shall have jurisdiction to assess such penalty.

(3) LIMITATION.—A person is not liable for a civil judicial

penalty under this paragraph for a violation if the person has

been assessed a civil administrative penalty under paragraph

(a) for the violation.

(c) DETERMINATION OF AMOUNT.—In determining the amount of

a civil penalty under paragraphs (a) or (b) of this section, the court,

the Secretary or the Administrator, as the case may be, shall consider the seriousness of the violation or violations, the economic benefit (if any) resulting from the violation, any history of such violations, any good-faith efforts to comply with the applicable requirements, the economic impact of the penalty on the violator, and other

such matters as justice may require.

(d) CRIMINAL PENALTIES.— (1) NEGLIGENT VIOLATIONS.—Any person who negligently

violates section 1403, 1404, 1408 or 1413 of this Title, or any

regulations promulgated pursuant to this Title commits a Class

A misdemeanor.

(2) KNOWING VIOLATIONS.—Any person who knowingly violates section 1403, 1404, 1408 or 1413 of this Title, or any regulations promulgated pursuant to this Title commits a Class D

felony.

(3) FALSE STATEMENTS.—Any person who knowingly makes

any false statement, representation, or certification in any

record, report or other document filed or required to be maintained under this Title or the regulations issued thereunder, or

who falsifies, tampers with, or knowingly renders inaccurate

any testing or monitoring device or method required to be maintained under this Title, or the regulations issued thereunder,

commits a Class D felony.

(e) AWARDS.—

(1) The Secretary, the Administrator or the court, when assessing any fines or civil penalties, as the case may be, may pay

from any fines or civil penalties collected under this section an

amount not to exceed one-half of the penalty or fine collected,

to any individual who furnishes information which leads to the

payment of the penalty or fine. If several individuals provide

such information, the amount shall be divided equitably among

such individuals. No officer or employee of the United States,

the State of Alaska or any Federally recognized Tribe who furnishes information or renders service in the performance of his

or her official duties shall be eligible for payment under this

subsection.

(2) The Secretary, Administrator or the court, when assessing any fines or civil penalties, as the case may be, may pay,

from any fines or civil penalties collected under this section, to

the State of Alaska or to any Federally recognized Tribe providing information or investigative assistance which leads to

566

payment of the penalty or fine, an amount which reflects the

level of information or investigative assistance provided. Should

the State of Alaska or a Federally recognized Tribe and an individual under paragraph (1) of this section be eligible for an

award, the Secretary, the Administrator or the court, as the

case may be, shall divide the amount equitably.

(f) LIABILITY IN REM.—A cruise vessel operated in violation of

this Title or the regulations issued thereunder is liable in rem for

any fine imposed under subsection (d) of this section or for any civil

penalty imposed under subsections (a) or (b) of this section, and

may be proceeded against in the United States district court of any

district in which the cruise vessel may be found.

(g) COMPLIANCE ORDERS.— (1) IN GENERAL.—Whenever on the basis of any information

available to him the Administrator finds that any person is in

violation of section 1403, 1404, 1408 or 1413 of this Title, or

any regulations promulgated pursuant to this Title, the Administrator shall issue an order requiring such person to comply

with such section or requirement, or shall bring a civil action

in accordance with subsection (b).

(2) COPIES OF ORDERS, SERVICE.—A copy of any order

issued under this subsection shall be sent immediately by the

Administrator to the State of Alaska. In any case in which an

order under this subsection is issued to a corporation, a copy

of such order shall be served on any appropriate corporate officer. Any order issued under this subsection shall be by personal

service, shall state with reasonable specificity the nature of the

violation, and shall specify a time for compliance not to exceed

thirty days in the case of a violation of an interim compliance

schedule or operation and maintenance requirement and not to

exceed a time the Administrator determines to be reasonable in

the case of a violation of a final deadline, taking into account

the seriousness of the violation and any good faith efforts to

comply with applicable requirements.

(h) CIVIL ACTIONS.—The Administrator is authorized to commence a civil action for appropriate relief, including a permanent

or temporary injunction, for any violation for which he is authorized

to issue a compliance order under this subsection. Any action under

subsection (h) may be brought in the district court of the United

States for the district in which the defendant is located or resides

or is doing business, and such court shall have jurisdiction to restrain such violation and to require compliance. Notice of the commencement of such action shall be given immediately to the State

of Alaska.

SEC. 1410. DESIGNATION OF CRUISE VESSEL NO-DISCHARGE ZONES.

If the State of Alaska determines that the protection and enhancement of the quality of some or all of the waters of the Alexander Archipelago or the navigable waters of the United States

within the State of Alaska or within the Kachemak Bay National

Estuarine Research Reserve require greater environmental protection, the State of Alaska may petition the Administrator to prohibit

the discharge of graywater and sewage from cruise vessels operating

in such waters. The establishment of such a prohibition shall be

achieved in the same manner as the petitioning process and prohibiVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00570 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.005 pfrm03 PsN: HR1033
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tion of the discharge of sewage pursuant to Section 312(f) of the

Federal Water Pollution Control Act, as amended, and the regulations promulgated thereunder.

SEC. 1411. SAVINGS CLAUSE.

(a) Nothing in this Title shall be construed as restricting, affecting or amending any other law or the authority of any department,

instrumentality or agency of the United States.

(b) Nothing in this Title shall in any way affect or restrict, or

be construed to affect or restrict, the authority of the State of Alaska

or any political subdivision thereof—

(1) to impose additional liability or additional requirements; or

(2) to impose, or determine the amount of a fine or penalty

(whether criminal or civil in nature) for any violation of law;

relating to the discharge of sewage (whether treated or untreated) or graywater in the waters of the Alexander Archipelago and the navigable waters of the United States within the

State of Alaska or within the Kachemak Bay National Estuarine Research Reserve.

SEC. 1412. REGULATIONS.

The Secretary and the Administrator each may prescribe any

regulations necessary to carry out the provisions of this Title.

SEC. 1413. INFORMATION GATHERING AUTHORITY.

The authority of Sections 308(a) and (b) of the Federal Water

Pollution Control Act, as amended, shall be available to the Administrator to carry out the provisions of this Title. The Administrator

and the Secretary shall minimize, to the extent practicable, duplication of or inconsistency with the inspection, sampling, testing, recordkeeping and reporting requirements established by the Secretary

under section 1406 of this Title.

SEC. 1414. DEFINITIONS.

In this title:

(1) ADMINISTRATOR.—The term ‘‘Administrator’’ means the

Administrator of the United States Environmental Protection

Agency.

(2) CRUISE VESSEL.—The term ‘‘cruise vessel’’ means a passenger vessel as defined in section 2101(22) of Title 46, United

States Code. The term ‘‘cruise vessel’’ does not include a vessel

of the United States operated by the Federal Government or a

vessel owned and operated by the government of a State.

(3) DISCHARGE.—The term ‘‘discharge’’ means any release

however caused from a cruise vessel, and includes any escape,

disposal, spilling, leaking, pumping, emitting or emptying.

(4) GRAYWATER.—The term ‘‘graywater’’ means only galley,

dishwasher, bath, and laundry waste water. The term does not

include other wastes or waste streams.

(5) NAVIGABLE WATERS.—The term ‘‘navigable waters’’ has

the same meaning as in section 502 of the Federal Water Pollution Control Act, as amended.

(6) PERSON.—The term ‘‘person’’ means an individual, corporation, partnership, limited liability company, association,

568

State, municipality, commission or political subdivision of a

State, or any Federally recognized Tribe.

(7) SECRETARY.—The term ‘‘Secretary’’ means the Secretary

of the department in which the United States Coast Guard is

operating.

(8) SEWAGE.—The term ‘‘sewage’’ means human body

wastes and the wastes from toilets and other receptacles intended to receive or retain body waste.

(9) TREATED SEWAGE.—The term ‘‘treated sewage’’ means

sewage meeting all applicable effluent limitation standards and

processing requirements of the Federal Water Pollution Control

Act, as amended and of this Title, and regulations promulgated

under either.

(10) UNTREATED SEWAGE.—The term ‘‘untreated sewage’’

means sewage that is not treated sewage.

(11) WATERS OF THE ALEXANDER ARCHIPELAGO.—The term

‘‘waters of the Alexander Archipelago’’ means all waters under

the sovereignty of the United States within or near Southeast

Alaska, beginning at a point 58°11′41′′N, 136°39′25′′W [near

Cape Spencer Light], thence southeasterly along a line three

nautical miles seaward of the baseline from which the breadth

of the territorial sea is measured in the Pacific Ocean and the

Dixon Entrance, except where this line intersects geodesics connecting the following five pairs of points:

(1) 58°05′17′′N, 136°33′49′′W and 58°11′41′′N, 136°39′25′′W

[Cross Sound]

(2) 56°09′40′′N, 134°40′00′′W and 55°49′15′′N, 134°17′40′′W

[Chatham Strait]

(3) 55°49′15′′N, 134°17′40′′W and 55°50′30′′N, 133°54′15′′W

[Sumner Strait]

(4) 54°41′30′′N, 132°01′00′′W and 54°51′′30′′N,

131°20′45′′W [Clarence Strait]

(5) 54°51′30′′N, 131°20′45′′W and 54°46′15′′N, 130°52′00′′W

[Revillagigedo Channel]

The portion of each such geodesic situated beyond 3 nautical miles

from the baseline from which the breadth of the territorial sea is

measured forms the outer limit of the waters of the Alexander Archipelago in those five locations.

TITLE XV—LIFE ACT AMENDMENTS

SEC. 1501. SHORT TITLE.

This title may be cited as the ‘‘LIFE Act Amendments of 2000’’.

SEC. 1502. SUBSTITUTION OF ALTERNATIVE ADJUSTMENT PROVISION.

(a) EXTENDED APPLICATION OF SECTION 245(i).—

(1) IN GENERAL.—Paragraph (1) of section 245(i) of the Immigration and Nationality Act (8 U.S.C. 1255(i)) is amended—

(A) in subparagraph (A), by striking ‘‘and’’ at the end;

(B) in subparagraph (B)(i), by striking ‘‘January 14,

1998’’ and inserting ‘‘April 30, 2001’’;

(C) in subparagraph (B), by adding ‘‘and’’ at the end;

and

(D) by inserting after subparagraph (B) the following

new subparagraph:

569

‘‘(C) who, in the case of a beneficiary of a petition for classification, or an application for labor certification, described in

subparagraph (B) that was filed after January 14, 1998, is

physically present in the United States on the date of the enactment of the LIFE Act Amendments of 2000;’’.

(2) MODIFICATION IN USE OF FUNDS.—Paragraph (3)(B) of

such section is amended by inserting before the period the following: ‘‘, except that in the case of fees attributable to applications for a beneficiary with respect to whom a petition for classification, or an application for labor certification, described in

paragraph (1)(B) was filed after January 14, 1998, one-half of

such remaining portion shall be deposited by the Attorney General into the Immigration Examinations Fee Account established under section 286(m)’’.

(b) CONFORMING AMENDMENTS.—

(1) Subsection (m) of section 245 of the Immigration and

Nationality Act, as added by section 1102(c) of the Legal Immigration Family Equity Act, is repealed.

(2) Section 245 of the Immigration and Nationality Act, as

amended by section 1102(d)(2) of the Legal Immigration Family

Equity Act, is amended by striking ‘‘or (m)’’ each place it appears.

SEC. 1503. MODIFICATION OF SECTION 1104 ADJUSTMENT PROVISIONS.

(a) INCLUSION OF ADDITIONAL CLASS.—Section 1104(b) of the

Legal Immigration Family Equity Act is amended—

(1) in paragraph (1), by striking ‘‘or’’ at the end;

(2) in paragraph (2), by striking the period at the end and

inserting ‘‘; or’’; and

(3) by adding at the end the following new paragraph:

‘‘(3) Zambrano v. INS, vacated sub nom. Immigration and

Naturalization Service v. Zambrano, 509 U.S. 918 (1993).’’.

(b) CONFORMING APPLICATION OF CONSENT PROVISION.—Section 1104(c) of the Legal Immigration Family Equity Act is amended by adding at the end the following new paragraph:

‘‘(10) CONFORMING APPLICATION OF CONSENT PROVISION.—

In addition to the waivers provided in subsection (d)(2) of such

section 245A of the Immigration and Nationality Act, the Attorney General may grant the alien a waiver of the grounds of inadmissibility under subparagraphs (A) and (C) of section

212(a)(9) of such Act (8 U.S.C. 1182(a)(9)). In granting such

waivers, the Attorney General shall use standards used in

granting consent under subparagraphs (A)(iii) and (C)(ii) of

such section.’’.

(c) INAPPLICABILITY OF REMOVAL ORDER REINSTATEMENT.—Section 1104 of such Act is further amended—

(1) by redesignating subsection (g) as subsection (h); and

(2) by inserting after subsection (f) the following new subsection:

‘‘(g) INAPPLICABILITY OF REMOVAL ORDER REINSTATEMENT.—

Section 241(a)(5) of the Immigration and Nationality Act shall not

apply with respect to an alien who is applying for adjusmtent of status under this section.’’.

570

SEC. 1504. APPLICATION OF FAMILY UNITY PROVISIONS TO SPOUSES

AND UNMARRIED CHILDREN OF CERTAIN LIFE ACT BENEFICIARIES.

(a) IMMIGRATION BENEFITS.—Except as provided in subsection

(d), in the case of an eligible spouse or child (as described in subsection (b)), the Attorney General—

(1) shall not remove the alien on a ground specified in

paragraph (1)(A), (1)(B), (1)(C), or (3)(A) of section 237(a) of the

Immigration and Nationality Act (8 U.S.C. 1227(a)), other than

so much of paragraph (1)(A) of such section as relates to a

ground of inadmissibility described in paragraph (2) or (3) of

section 212(a) of such Act (8 U.S.C. 1182(a)); and

(2) shall authorize the alien to engage in employment in the

United States during the period of time in which protection is

provided under paragraph (1) and shall provide the alien with

an ‘‘employment authorized’’ endorsement or other appropriate

document signifying authorization of employment.

(b) ELIGIBLE SPOUSES AND CHILDREN.—For purposes of this

section, the term ‘‘eligible spouse or child’’ means an alien who is

the spouse or unmarried child of an alien described in section

1104(b) of the Legal Immigration Family Equity Act if the spouse

or child—

(1) entered the United States before December 1, 1988; and

(2) resided in the United States on such date.

(c) PROCESS FOR RELIEF FOR ELIGIBLE SPOUSES AND CHILDREN

OUTSIDE THE UNITED STATES.—If an alien has obtained lawful permanent resident status under section 1104 of the Legal Immigration

Family Equity Act and the alien has an eligible spouse or child who

is no longer physically present in the United States, the Attorney

General shall establish a process under which the eligible spouse or

child may be paroled into the United States in order to obtain the

benefits of subsection (a) unless the Attorney General finds that the

spouse or child would be inadmissible or deportable on any ground,

other than a ground for which the alien would not be subject to removal under subsection (a)(1). An alien so paroled shall not be

treated as paroled into the United States for purposes of section

201(c)(4) of the Immigration and Nationality Act (8 U.S.C.

1151(c)(4)).

(d) EXCEPTION.—An alien is not eligible for the benefits of this

section if the Attorney General finds that—

(1) the alien has been convicted of a felony or three or more

misdemeanors in the United States; or

(2) the alien is described in section 241(b)(3)(B) of the Immigration and Nationality Act (8 U.S.C. 1231(b)(3)(B)).

(e) APPLICATION OF DEFINITIONS.—Except as otherwise specifically provided in this section, the definitions contained in the Immigration and Nationality Act shall apply in the administration of

this section.

SEC. 1505. MISCELLANEOUS AMENDMENTS TO VARIOUS ADJUSTMENT

AND RELIEF ACTS.

(a) NICARAGUAN ADJUSTMENT AND CENTRAL AMERICAN RELIEF

ACT.—

(1) IN GENERAL.—Section 202(a) of the Nicaraguan Adjustment and Central American Relief Act is amended—

571

(A) by redesignating paragraph (2) as paragraph (3);

and

(B) by inserting after paragraph (1) the following new

paragraph:

‘‘(2) RULES IN APPLYING CERTAIN PROVISIONS.—In the case

of an alien described in subsection (b) or (d) who is applying

for adjustment of status under this section—

‘‘(A) the provisions of section 241(a)(5) of the Immigration and Nationality Act shall not apply; and

‘‘(B) the Attorney General may grant the alien a waiver

of the grounds of inadmissibility under subparagraphs (A)

and (C) of section 212(a)(9) of such Act.

In granting waivers under subparagraph (B), the Attorney General shall use standards used in granting consent under subparagraphs (A)(iii) and (C)(ii) of such section 212(a)(9).’’.

(2) PERMITTING MOTION TO REOPEN.—Notwithstanding any

time and number limitations imposed by law on motions to reopen exclusion, removal, or deportation proceedings (except limitations premised on an alien’s conviction of an aggravated felony (as defined by section 101(a) of the Immigration and Nationality Act)), a national of Cuba or Nicaragua who has become eligible for adjustment of status under the Nicaraguan

Adjustment and Central American Relief Act as a result of the

amendments made by paragraph (1), may file one motion to reopen exclusion, deportation, or removal proceedings to apply for

such adjustment under that Act. The scope of any proceeding

reopened on this basis shall be limited to a determination of the

alien’s eligibility for adjustment of status under that Act. All

such motions shall be filed within 180 days of the date of the

enactment of this Act.

(b) HAITIAN REFUGEE IMMIGRATION FAIRNESS ACT OF 1998.—

(1) INAPPLICABILITY OF CERTAIN PROVISIONS.—Section

902(a) of the Haitian Refugee Immigration Fairness Act of 1998

is amended—

(A) by redesignating paragraph (2) as paragraph (3);

and

(B) by inserting after paragraph (1) the following new

paragraph:

‘‘(2) INAPPLICABILITY OF CERTAIN PROVISIONS.—In the case

of an alien described in subsection (b) or (d) who is applying

for adjustment of status under this section—

‘‘(A) the provisions of section 241(a)(5) of the Immigration and Nationality Act shall not apply; and

‘‘(B) the Attorney General may grant the alien a waiver

of the grounds of inadmissibility under subparagraphs (A)

and (C) of section 212(a)(9) of such Act.

In granting waivers under subparagraph (B), the Attorney General shall use standards used in granting consent under subparagraphs (A)(iii) and (C)(ii) of such section 212(a)(9).’’.

(2) PERMITTING MOTION TO REOPEN.—Notwithstanding any

time and number limitations imposed by law on motions to reopen exclusion, removal, or deportation proceedings (except limitations premised on an alien’s conviction of an aggravated felony (as defined by section 101(a) of the Immigration and NaVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00575 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.005 pfrm03 PsN: HR1033
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tionality Act)), a national of Haiti who has become eligible for

adjustment of status under the Haitian Refugee Immigration

Fairness Act of 1998 as a result of the amendments made by

paragraph (1), may file one motion to reopen exclusion, deportation, or removal proceedings to apply for such adjustment under

that Act. The scope of any proceeding reopened on this basis

shall be limited to a determination of the alien’s eligibility for

adjustment of status under that Act. All such motions shall be

filed within 180 days of the date of the enactment of this Act.

(c) SECTION 309 OF IIRIRA.—Section 309 of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 is amended by adding at the end the following new subsection:

‘‘(h) RELIEF AND MOTIONS TO REOPEN.—

‘‘(1) RELIEF.—An alien described in subsection (c)(5)(C)(i)

who is otherwise eligible for—

‘‘(A) suspension of deportation pursuant to section

244(a) of the Immigration and Nationality Act, as in effect

before the title III–A effective date; or

‘‘(B) cancellation of removal, pursuant to section

240A(b) of the Immigration and Nationality Act and subsection (f) of this section;

shall not be barred from applying for such relief by operation

of section 241(a)(5) of the Immigration and National Act, as in

effect after the title III–A effective date.

‘‘(2) ADDITIONAL MOTION TO REOPEN PERMITTED.—Notwithstanding any limitation imposed by law on motions to reopen

removal or deportation proceedings (except limitations premised

on an alien’s conviction of an aggravated felony (as defined by

section 101(a) of the Immigration and Nationality Act)), any

alien who is described in subsection (c)(5)(C)(i) and who has become eligible for cancellation of removal or suspension of deportation as a result of the enactment of paragraph (1) may file one

motion to reopen removal or deportation proceedings in order to

apply for cancellation of removal or suspension of deportation.

The scope of any proceeding reopened on this basis shall be limited to a determination of the alien’s eligibility for cancellation

of removal or suspension of deportation. The Attorney General

shall designate a specific time period in which all such motions

to reopen are required to be filed. The period shall begin not

later than 60 days after the date of the enactment of this subsection and shall extend for a period not to exceed 240 days.

‘‘(3) CONSTRUCTION.—Nothing in this subsection shall preclude an alien from filing a motion to reopen pursuant to section 240(b)(5)(C)(ii) of the Immigration and Nationality Act, or

section 242B(c)(3)(B) of such Act (as in effect before the title III–

A effective date).’’.

SEC. 1506. EFFECTIVE DATE.

This title shall take effect as if included in the enactment of the

Legal Immigration Family Equity Act.

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TITLE XVI—IMPROVING LITERACY THROUGH FAMILY

LITERACY PROJECTS

SEC. 1601. SHORT TITLE.

This title may be cited as the ‘‘Literacy Involves Families Together Act’’.

SEC. 1602. AUTHORIZATION OF APPROPRIATIONS.

Section 1002(b) of the Elementary and Secondary Education

Act of 1965 (20 U.S.C. 6302(b)) is amended by striking

‘‘$118,000,000 for fiscal year 1995’’ and inserting ‘‘$250,000,000 for

fiscal year 2001’’.

SEC. 1603. IMPROVING BASIC PROGRAMS OPERATED BY LOCAL EDUCATIONAL AGENCIES.

Section 1111(c) of the Elementary and Secondary Education Act

of 1965 (20 U.S.C. 6311(c)) is amended—

(1) in paragraph (5), by striking ‘‘and’’ at the end;

(2) in paragraph (6), by striking the period at the end and

inserting ‘‘; and’’; and

(3) by adding at the end the following:

‘‘(7) the State educational agency will encourage local educational agencies and individual schools participating in a program assisted under this part to offer family literacy services

(using funds under this part), if the agency or school determines

that a substantial number of students served under this part by

the agency or school have parents who do not have a high

school diploma or its recognized equivalent or who have low

levels of literacy.’’.

SEC. 1604. EVEN START FAMILY LITERACY PROGRAMS.

(a) PART HEADING.—The part heading for part B of title I of the

Elementary and Secondary Education Act of 1965 (20 U.S.C. 6361

et seq.) is amended to read as follows:

‘‘PART B—WILLIAM F. GOODLING EVEN START

FAMILY LITERACY PROGRAMS’’.

(b) STATEMENT OF PURPOSE.—Section 1201 of the Elementary

and Secondary Education Act of 1965 (20 U.S.C. 6361) is

amended—

(1) in paragraph (1), by inserting ‘‘high quality’’ after

‘‘build on’’; and

(2) by amending paragraph (2) to read as follows:

‘‘(2) promote the academic achievement of children and

adults;’’;

(3) by striking the period at the end of paragraph (3) and

inserting ‘‘; and’’; and

(4) by adding at the end the following:

‘‘(4) use instructional programs based on scientifically

based reading research (as defined in section 2252) and the prevention of reading difficulties for children and adults, to the extent such research is available.’’.

(c) PROGRAM AUTHORIZED.—

(1) RESERVATION FOR MIGRANT PROGRAMS, OUTLYING

AREAS, AND INDIAN TRIBES.—Section 1202(a) of the Elementary

574

and Secondary Education Act of 1965 (20 U.S.C. 6362(a)) is

amended—

(A) in paragraph (1), in the matter preceding subparagraph (A), by inserting ‘‘(or, if such appropriated amount

exceeds $200,000,000, 6 percent of such amount)’’ after

‘‘1002(b)’’;

(B) in paragraph (2), by striking ‘‘If the amount of

funds made available under this subsection exceeds

$4,600,000,’’ and inserting ‘‘After the date of the enactment

of the Literacy Involves Families Together Act,’’; and

(C) by adding at the end the following:

‘‘(3) COORDINATION OF PROGRAMS FOR AMERICAN INDIANS.—

The Secretary shall ensure that programs under paragraph

(1)(C) are coordinated with family literacy programs operated

by the Bureau of Indian Affairs in order to avoid duplication

and to encourage the dissemination of information on high

quality family literacy programs serving American Indians.’’.

(2) RESERVATION FOR FEDERAL ACTIVITIES.—Section

1202(b) of the Elementary and Secondary Education Act of

1965 (20 U.S.C. 6362(b)) is amended to read as follows:

‘‘(b) RESERVATION FOR FEDERAL ACTIVITIES.—

‘‘(1) EVALUATION, TECHNICAL ASSISTANCE, PROGRAM IMPROVEMENT, AND REPLICATION ACTIVITIES.—From amounts appropriated under section 1002(b), the Secretary may reserve not

more than 3 percent of such amounts for purposes of—

‘‘(A) carrying out the evaluation required by section

1209; and

‘‘(B) providing, through grants or contracts with eligible organizations, technical assistance, program improvement, and replication activities.

‘‘(2) RESEARCH.—In the case of fiscal years 2001 through

2004, if the amount appropriated under section 1002(b) for any

of such years—

‘‘(A) is equal to or less than the amounts appropriated

for the preceding fiscal year, the Secretary may reserve

from such amount only the amount necessary to continue

multi-year activities carried out pursuant to section 1211(b)

that began during or prior to the preceding fiscal year; or

‘‘(B) exceeds the amount appropriated for the preceding

fiscal year, the Secretary shall reserve from such excess

amount $2,000,000 or 50 percent, whichever is less, to carry

out section 1211(b).’’.

(d) RESERVATION FOR GRANTS.—Section 1202(c)(1) of the Elementary and Secondary Education Act of 1965 (20 U.S.C.

6362(c)(1)) is amended—

(1) by striking ‘‘From funds reserved under section

2260(b)(3), the Secretary shall award grants,’’ and inserting

‘‘For any fiscal year for which at least one State applies and

submits an application that meets the requirements and goals

of this subsection and for which the amount appropriated under

section 1002(b) exceeds the amount appropriated under such

section for the preceding fiscal year, the Secretary shall reserve,

from the amount of such excess remaining after the application

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of subsection (b)(2), the amount of such remainder or

$1,000,000, whichever is less, to award grants,’’; and

(2) by adding at the end ‘‘No State may receive more than

one grant under this subsection.’’.

(e) ALLOCATIONS.—Section 1202(d)(2) of the Elementary and

Secondary Education Act of 1965 (20 U.S.C. 6362(d)(2)) is amended

by striking ‘‘that section’’ and inserting ‘‘that part’’.

(f) STATE LEVEL ACTIVITIES.—Section 1203(a) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6363(a)) is

amended—

(1) by striking ‘‘5 percent’’ and inserting ‘‘a total of 6 percent’’; and

(2) in paragraph (1), by inserting before the semicolon the

following: ‘‘, not to exceed half of such total’’.

(g) SUBGRANTS FOR LOCAL PROGRAMS.—Section 1203(b)(2) of

the Elementary and Secondary Education Act of 1965 (20 U.S.C.

6363(b)(2)) is amended to read as follows:

‘‘(2) MINIMUM SUBGRANT AMOUNTS.— ‘‘(A) IN GENERAL.—Except as provided in subparagraphs (B) and (C), no State shall award a subgrant under

paragraph (1) in an amount less than $75,000.

‘‘(B) SUBGRANTEES IN NINTH AND SUCCEEDING

YEARS.—No State shall award a subgrant under paragraph (1) in an amount less than $52,500 to an eligible entity for

a fiscal year to carry out an Even Start program that is receiving assistance under this part or its predecessor authority for the ninth (or any subsequent) fiscal year.

‘‘(C) EXCEPTION FOR SINGLE SUBGRANT.—A State may

award one subgrant in each fiscal year of sufficient size,

scope, and quality to be effective in an amount less than

$75,000 if, after awarding subgrants under paragraph (1)

for such fiscal year in accordance with subparagraphs (A)

and (B), less than $75,000 is available to the State to

award such subgrants.’’.

(h) USES OF FUNDS.—Section 1204 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6364) is amended—

(1) in subsection (a), by striking ‘‘family-centered education

programs’’ and inserting ‘‘family literacy services’’; and

(2) by adding at the end the following:

‘‘(c) USE OF FUNDS FOR FAMILY LITERACY SERVICES.—

‘‘(1) IN GENERAL.—From funds reserved under 1203(a), a

State may use a portion of such funds to assist eligible entities

receiving a subgrant under section 1203(b) in improving the

quality of family literacy services provided under Even Start

programs under this part, except that in no case may a State’s

use of funds for this purpose for a fiscal year result in a decrease from the level of activities and services provided to program participants in the preceding year.

‘‘(2) PRIORITY.—In carrying out paragraph (1), a State shall

give priority to programs that were of low quality, as evaluated

based on the indicators of program quality developed by the

State under section 1210.

‘‘(3) TECHNICAL ASSISTANCE TO HELP LOCAL PROGRAMS

RAISE ADDITIONAL FUNDS.—In carrying out paragraph (1), a

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State may use the funds referred to in such paragraph to provide technical assistance to help local programs of demonstrated effectiveness to access and leverage additional funds

for the purpose of expanding services and reducing waiting

lists, including requesting and applying for non-Federal resources.

‘‘(4) TECHNICAL ASSISTANCE AND TRAINING.—Assistance

under paragraph (1) shall be in the form of technical assistance

and training, provided by a State through a grant, contract, or

cooperative agreement with an entity that has experience in offering high quality training and technical assistance to family

literacy providers.’’.

(i) PROGRAM ELEMENTS.—Section 1205 of the Elementary and

Secondary Education Act of 1965 (20 U.S.C. 6365) is amended—

(1) by redesignating paragraphs (9) and (10) as paragraphs

(14) and (15), respectively;

(2) by redesignating paragraphs (5) through (8) as paragraphs (6) through (9), respectively;

(3) by inserting after paragraph (4) the following:

‘‘(5) with respect to the qualifications of staff the cost of

whose salaries are paid, in whole or in part, with Federal funds

provided under this part, ensure that—

‘‘(A) not later than 4 years after the date of the enactment of the Literacy Involves Families Together Act—

‘‘(i) a majority of the individuals providing academic instruction—

‘‘(I) shall have obtained an associate’s, bachelor’s, or graduate degree in a field related to early

childhood education, elementary or secondary

school education, or adult education; and

‘‘(II) if applicable, shall meet qualifications established by the State for early childhood education, elementary or secondary school education,

or adult education provided as part of an Even

Start program or another family literacy program;

‘‘(ii) the individual responsible for administration

of family literacy services under this part has received

training in the operation of a family literacy program;

and

‘‘(iii) paraprofessionals who provide support for

academic instruction have a high school diploma or its

recognized equivalent; and

‘‘(B) beginning on the date of the enactment of the Literacy Involves Families Together Act, all new personnel

hired to provide academic instruction—

‘‘(i) have obtained an associate’s, bachelor’s, or

graduate degree in a field related to early childhood

education, elementary or secondary school education,

or adult education; and

‘‘(ii) if applicable, meet qualifications established

by the State for early childhood education, elementary

or secondary school education, or adult education provided as part of an Even Start program or another

family literacy program;’’;

577

(4) in paragraph (8) (as so redesignated by paragraph (2),

by striking ‘‘or enrichment’’ and inserting ‘‘and enrichment’’.

(5) by inserting after paragraph (9) (as so redesignated by

paragraph (2)) the following:

‘‘(10) use instructional programs based on scientifically

based reading research (as defined in section 2252) for children

and adults, to the extent such research is available;

‘‘(11) encourage participating families to attend regularly

and to remain in the program a sufficient time to meet their

program goals;

‘‘(12) include reading readiness activities for preschool children based on scientifically based reading research (as defined

in section 2252), to the extent available, to ensure children enter

school ready to learn to read;

‘‘(13) if applicable, promote the continuity of family literacy

to ensure that individuals retain and improve their educational

outcomes’’; and

(5) in paragraph (14) (as so redesignated), by striking ‘‘program.’’ and inserting ‘‘program to be used for program improvement.’’.

(j) ELIGIBLE PARTICIPANTS.—Section 1206 of the Elementary

and Secondary Education Act of 1965 (20 U.S.C. 6366) is

amended—

(1) in subsection (a)(1)(B) by striking ‘‘part;’’ and inserting

‘‘part, or who are attending secondary school;’’; and

(2) in subsection (b), by adding at the end the following:

‘‘(3) CHILDREN 8 YEARS OF AGE OR OLDER.—If an Even

Start program assisted under this part collaborates with a program under part A, and funds received under such part A program contribute to paying the cost of providing programs under

this part to children 8 years of age or older, the Even Start program, notwithstanding subsection (a)(2), may permit the participation of children 8 years of age or older if the focus of the

program continues to remain on families with young children.’’.

(k) PLAN.—Section 1207(c) of the Elementary and Secondary

Education Act of 1965 (20 U.S.C. 6367(c)) is amended—

(1) in paragraph (1)—

(A) in the matter preceding subparagraph (A), by inserting ‘‘and continuous improvement’’ after ‘‘plan of operation’’;

(B) in subparagraph (A), by striking ‘‘goals;’’ and inserting ‘‘objectives, strategies to meet such objectives, and

how they are consistent with the program indicators established by the State;’’;

(C) in subparagraph (E), by striking ‘‘and’’ at the end;

(D) in subparagraph (F)—

(i) by striking ‘‘Act, the Goals 2000: Educate America Act,’’ and inserting ‘‘Act’’; and

(ii) by striking the period at the end and inserting

‘‘; and’’; and

(E) by adding at the end the following:

‘‘(G) a description of how the plan provides for rigorous

and objective evaluation of progress toward the program

objectives described in subparagraph (A) and for conVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00581 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.005 pfrm03 PsN: HR1033
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tinuing use of evaluation data for program improvement.’’;

and

(2) in paragraph (2), in the matter preceding subparagraph

(A), by striking ‘‘(1)(A)’’ and inserting ‘‘(1)’’.

(l) AWARD OF SUBGRANTS.—Section 1208 of the Elementary and

Secondary Education Act of 1965 (20 U.S.C. 6368) is amended—

(1) in subsection (a)—

(A) in paragraph (1)(B)—

(i) by striking ‘‘including a high’’ and inserting

‘‘such as a high’’; and

(ii) by striking ‘‘part A;’’ and inserting ‘‘part A, a

high number or percentage of parents who have been

victims of domestic violence, or a high number or percentage of parents who are receiving assistance under

a State program funded under part A of title IV of the

Social Security Act (42 U.S.C. 601 et seq.);’’;

(B) in paragraph (1)(F), by striking ‘‘Federal’’ and inserting ‘‘non-Federal’’;

(C) in paragraph (1)(H), by inserting ‘‘family literacy

projects and other’’ before ‘‘local educational agencies’’; and

(D) in paragraph (3), in the matter preceding subparagraph (A), by striking ‘‘one or more of the following individuals:’’ and inserting ‘‘one individual with expertise in family literacy programs, and may include other individuals,

such as one or more of the following:’’; and

(2) in subsection (b)—

(A) by striking paragraph (3) and inserting the following:

‘‘(3) CONTINUING ELIGIBILITY.—In awarding subgrant funds

to continue a program under this part after the first year, the

State educational agency shall review the progress of each eligible entity in meeting the objectives of the program referred to

in section 1207(c)(1)(A) and shall evaluate the program based

on the indicators of program quality developed by the State

under section 1210.’’; and

(B) by amending paragraph (5)(B) to read as follows:

‘‘(B) The Federal share of any subgrant renewed under subparagraph (A) shall be limited in accordance with section

1204(b).’’.

(m) RESEARCH.—Section 1211 of the Elementary and Secondary

Education Act of 1965 (20 U.S.C. 6369b) is amended—

(1) in subsection (b), by striking ‘‘subsection (a)’’ and inserting ‘‘subsections (a) and (b)’’;

(2) by redesignating subsection (b) as subsection (c); and

(3) by inserting after subsection (a) the following:

‘‘(b) SCIENTIFICALLY BASED RESEARCH ON FAMILY LITERACY.—

‘‘(1) IN GENERAL.—From amounts reserved under section

1202(b)(2), the National Institute for Literacy, in consultation

with the Secretary, shall carry out research that—

‘‘(A) is scientifically based reading research (as defined

in section 2252); and

‘‘(B) determines—

‘‘(i) the most effective ways of improving the literacy skills of adults with reading difficulties; and

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‘‘(ii) how family literacy services can best provide

parents with the knowledge and skills they need to support their children’s literacy development.

‘‘(2) USE OF EXPERT ENTITY.—The National Institute for

Literacy, in consultation with the Secretary, shall carry out the

research under paragraph (1) through an entity, including a

Federal agency, that has expertise in carrying out longitudinal

studies of the development of literacy skills in children and has

developed effective interventions to help children with reading

difficulties.’’.

(n) INDICATORS OF PROGRAM QUALITY.—Not later than 30 days

after the date of the enactment of this Act, the Secretary shall notify

each State that receives funds under part B of title I of the Elementary and Secondary Education Act of 1965 that to be eligible to receive fiscal year 2001 funds under part B, such State shall submit

to the Secretary, not later than June 30, 2001, its indicators of program quality as described in section 1210 of the Elementary and

Secondary Education Act of 1965. A State that fails to comply with

this subsection shall be ineligible to receive funds under such part

in subsequent years unless such State submits to the Secretary, not

later than June 30 of the year in which funds are requested, its indicators of program quality as described in section 1210 of the Elementary and Secondary Education Act of 1965.

SEC. 1605. EDUCATION OF MIGRATORY CHILDREN.

Section 1304(b) of the Elementary and Secondary Education

Act of 1965 (20 U.S.C. 6394(b)) is amended—

(1) in paragraph (5), by striking ‘‘and’’ at the end;

(2) in paragraph (6), by striking the period at the end and

inserting ‘‘; and’’; and

(3) by adding at the end the following:

‘‘(7) a description of how the State will encourage programs

and projects assisted under this part to offer family literacy

services if the program or project serves a substantial number

of migratory children who have parents who do not have a high

school diploma or its recognized equivalent or who have low

levels of literacy.’’.

SEC. 1606. DEFINITIONS.

(a) IN GENERAL.—Section 14101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 8801) is amended—

(1) by redesignating paragraphs (15) through (29) as paragraphs (16) through (30), respectively; and

(2) by inserting after paragraph (14) the following:

‘‘(15) FAMILY LITERACY SERVICES.—The term ‘family literacy services’ means services provided to participants on a voluntary basis that are of sufficient intensity in terms of hours,

and of sufficient duration, to make sustainable changes in a

family, and that integrate all of the following activities:

‘‘(A) Interactive literacy activities between parents and

their children.

‘‘(B) Training for parents regarding how to be the primary teacher for their children and full partners in the

education of their children.

580

‘‘(C) Parent literacy training that leads to economic

self-sufficiency.

‘‘(D) An age-appropriate education to prepare children

for success in school and life experiences.’’.

(b) CONFORMING AMENDMENTS.—

(1) EVEN START FAMILY LITERACY PROGRAMS.—Section

1202(e) of the Elementary and Secondary Education Act of 1965

(20 U.S.C. 6362(e)) is amended—

(A) by striking paragraph (3); and

(B) by redesignating paragraphs (4) and (5) as paragraphs (3) and (4), respectively.

(2) READING AND LITERACY GRANTS.—(A) Section 2252 of

the Elementary and Secondary Education Act of 1965 (20

U.S.C. 6661a) is amended—

(i) by striking paragraph (2); and

(ii) by redesignating paragraphs (3) through (5) as

paragraphs (2) through (4), respectively.

(B) Section 2260 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6661i) is amendmed—

(i) in subsection (a), by striking ‘‘and section 1202(c)’’

each place it appears, and

(ii) in subsection (b)—

(I) in paragraph (1), by inserting ‘‘and’’ after the

semicolon;

(II) in paragraph (2), by striking ‘‘; and ’’ and inserting a period; and

(III) by striking paragraph (3).

SEC. 1607. INDIAN EDUCATION.

(a) EARLY CHILDHOOD DEVELOPMENT PROGRAM.—Section 1143

of the Education Amendments of 1978 (25 U.S.C. 2023) is

amended—

(1) in subsection (b)(1), in the matter preceding subparagraph (A)—

(A) by striking ‘‘(f)’’ and inserting ‘‘(g)’’; and

(B) by striking ‘‘(e))’’ and inserting ‘‘(f))’’;

(2) in subsection (d)(1)—

(A) by redesignating subparagraphs (D) and (E) as

subparagraphs (E) and (F), respectively; and

(B) by inserting after subparagraph (C) the following:

‘‘(D) family literacy services,’’;

(3) in subsection (e), by striking ‘‘(f),’’ and inserting ‘‘(g),’’;

(4) by redesignating subsections (e) and (f) as subsections

(f) and (g), respectively; and

(5) by inserting after subsection (d) the following:

‘‘(e) Family literacy programs operated under this section, and

other family literacy programs operated by the Bureau of Indian Affairs, shall be coordinated with family literacy programs for American Indian children under part B of title I of the Elementary and

Secondary Education Act of 1965 in order to avoid duplication and

to encourage the dissemination of information on quality family literacy programs serving American Indians.’’.

(b) DEFINITIONS.—Section 1146 of the Education Amendments

of 1978 (25 U.S.C. 2026) is amended—

581

(1) by redesignating paragraphs (7) through (14) as paragraphs (8) through (15), respectively; and

(2) by inserting after paragraph (6) the following:

‘‘(7) the term ‘family literacy services’ has the meaning

given such term in section 14101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 8801);’’.

TITLE XVII—CHILDREN’S INTERNET PROTECTION

SEC. 1701. SHORT TITLE.

This title may be cited as the ‘‘Children’s Internet Protection

Act’’.

SEC. 1702. DISCLAIMERS.

(a) DISCLAIMER REGARDING CONTENT.—Nothing in this title or

the amendments made by this title shall be construed to prohibit a

local educational agency, elementary or secondary school, or library

from blocking access on the Internet on computers owned or operated by that agency, school, or library to any content other than content covered by this title or the amendments made by this title.

(b) DISCLAIMER REGARDING PRIVACY.—Nothing in this title or

the amendments made by this title shall be construed to require the

tracking of Internet use by any identifiable minor or adult user.

SEC. 1703. STUDY OF TECHNOLOGY PROTECTION MEASURES.

(a) IN GENERAL.—Not later than 18 months after the date of the

enactment of this Act, the National Telecommunications and Information Administration shall initiate a notice and comment proceeding for purposes of—

(1) evaluating whether or not currently available technology

protection measures, including commercial Internet blocking

and filtering software, adequately addresses the needs of educational institutions;

(2) making recommendations on how to foster the development of measures that meet such needs; and

(3) evaluating the development and effectiveness of local

Internet safety policies that are currently in operation after

community input.

(b) DEFINITIONS.—In this section:

(1) TECHNOLOGY PROTECTION MEASURE.—The term ‘‘technology protection measure’’ means a specific technology that

blocks or filters Internet access to visual depictions that are—

(A) obscene, as that term is defined in section 1460 of

title 18, United States Code;

(B) child pornography, as that term is defined in section 2256 of title 18, United States Code; or

(C) harmful to minors.

(2) HARMFUL TO MINORS.—The term ‘‘harmful to minors’’

means any picture, image, graphic image file, or other visual

depiction that—

(A) taken as a whole and with respect to minors, appeals to a prurient interest in nudity, sex, or excretion;

(B) depicts, describes, or represents, in a patently offensive way with respect to what is suitable for minors, an actual or simulated sexual act or sexual contact, actual or

582

simulated normal or perverted sexual acts, or a lewd exhibition of the genitals; and

(C) taken as a whole, lacks serious literary, artistic, political, or scientific value as to minors.

(3) SEXUAL ACT; SEXUAL CONTACT.—The terms ‘‘sexual act’’

and ‘‘sexual contact’’ have the meanings given such terms in

section 2246 of title 18, United States Code.

Subtitle A—Federal Funding for Educational Institution

Computers

SEC. 1711. LIMITATION ON AVAILABILITY OF CERTAIN FUNDS FOR

SCHOOLS.

Title III of the Elementary and Secondary Education Act of

1965 (20 U.S.C. 6801 et seq.) is amended by adding at the end the

following:

‘‘PART F—LIMITATION ON AVAILABILITY OF

CERTAIN FUNDS FOR SCHOOLS

‘‘SEC. 3601. LIMITATION ON AVAILABILITY OF CERTAIN FUNDS FOR

SCHOOLS.

‘‘(a) INTERNET SAFETY.—

‘‘(1) IN GENERAL.—No funds made available under this title

to a local educational agency for an elementary or secondary

school that does not receive services at discount rates under section 254(h)(5) of the Communications Act of 1934, as added by

section 1721 of Children’s Internet Protection Act, may be used

to purchase computers used to access the Internet, or to pay for

direct costs associated with accessing the Internet, for such

school unless the school, school board, local educational agency,

or other authority with responsibility for administration of such

school both—

‘‘(A)(i) has in place a policy of Internet safety for minors that includes the operation of a technology protection

measure with respect to any of its computers with Internet

access that protects against access through such computers

to visual depictions that are—

‘‘(I) obscene;

‘‘(II) child pornography; or

‘‘(III) harmful to minors; and

‘‘(ii) is enforcing the operation of such technology protection measure during any use of such computers by minors; and

‘‘(B)(i) has in place a policy of Internet safety that includes the operation of a technology protection measure

with respect to any of its computers with Internet access

that protects against access through such computers to visual depictions that are—

‘‘(I) obscene; or

‘‘(II) child pornography; and

‘‘(ii) is enforcing the operation of such technology protection measure during any use of such computers.

‘‘(2) TIMING AND APPLICABILITY OF IMPLEMENTATION.—

583

‘‘(A) IN GENERAL.—The local educational agency with

responsibility for a school covered by paragraph (1) shall

certify the compliance of such school with the requirements

of paragraph (1) as part of the application process for the

next program funding year under this Act following the effective date of this section, and for each subsequent program funding year thereafter.

‘‘(B) PROCESS.— ‘‘(i) SCHOOLS WITH INTERNET SAFETY POLICIES AND

TECHNOLOGY PROTECTION MEASURES IN PLACE.—A

local educational agency with responsibility for a

school covered by paragraph (1) that has in place an

Internet safety policy meeting the requirements of paragraph (1) shall certify its compliance with paragraph

(1) during each annual program application cycle

under this Act.

‘‘(ii) SCHOOLS WITHOUT INTERNET SAFETY POLICIES

AND TECHNOLOGY PROTECTION MEASURES IN PLACE.—A

local educational agency with responsibility for a

school covered by paragraph (1) that does not have in

place an Internet safety policy meeting the requirements of paragraph (1)—

‘‘(I) for the first program year after the effective date of this section in which the local educational agency is applying for funds for such

school under this Act, shall certify that it is undertaking such actions, including any necessary procurement procedures, to put in place an Internet

safety policy that meets such requirements; and

‘‘(II) for the second program year after the effective date of this section in which the local educational agency is applying for funds for such

school under this Act, shall certify that such school

is in compliance with such requirements.

Any school covered by paragraph (1) for which the

local educational agency concerned is unable to certify

compliance with such requirements in such second program year shall be ineligible for all funding under this

title for such second program year and all subsequent

program years until such time as such school comes

into compliance with such requirements.

‘‘(iii) WAIVERS.—Any school subject to a certification under clause (ii)(II) for which the local educational agency concerned cannot make the certification otherwise required by that clause may seek a

waiver of that clause if State or local procurement

rules or regulations or competitive bidding requirements prevent the making of the certification otherwise

required by that clause. The local educational agency

concerned shall notify the Secretary of the applicability

of that clause to the school. Such notice shall certify

that the school will be brought into compliance with

the requirements in paragraph (1) before the start of

the third program year after the effective date of this

584

section in which the school is applying for funds under

this title.

‘‘(3) DISABLING DURING CERTAIN USE.—An administrator,

supervisor, or person authorized by the responsible authority

under paragraph (1) may disable the technology protection

measure concerned to enable access for bona fide research or

other lawful purposes.

‘‘(4) NONCOMPLIANCE.—

‘‘(A) USE OF GENERAL EDUCATION PROVISIONS ACT REMEDIES.—Whenever the Secretary has reason to believe that

any recipient of funds under this title is failing to comply

substantially with the requirements of this subsection, the

Secretary may—

‘‘(i) withhold further payments to the recipient

under this title,

‘‘(ii) issue a complaint to compel compliance of the

recipient through a cease and desist order, or

‘‘(iii) enter into a compliance agreement with a recipient to bring it into compliance with such requirements,

in same manner as the Secretary is authorized to take such

actions under sections 455, 456, and 457, respectively, of

the General Education Provisions Act (20 U.S.C. 1234d).

‘‘(B) RECOVERY OF FUNDS PROHIBITED.—The actions

authorized by subparagraph (A) are the exclusive remedies

available with respect to the failure of a school to comply

substantially with a provision of this subsection, and the

Secretary shall not seek a recovery of funds from the recipient for such failure.

‘‘(C) RECOMMENCEMENT OF PAYMENTS.—Whenever the

Secretary determines (whether by certification or other appropriate evidence) that a recipient of funds who is subject

to the withholding of payments under subparagraph (A)(i)

has cured the failure providing the basis for the withholding of payments, the Secretary shall cease the withholding of payments to the recipient under that subparagraph.

‘‘(5) DEFINITIONS.—In this section:

‘‘(A) COMPUTER.—The term ‘computer’ includes any

hardware, software, or other technology attached or connected to, installed in, or otherwise used in connection with

a computer.

‘‘(B) ACCESS TO INTERNET.—A computer shall be considered to have access to the Internet if such computer is

equipped with a modem or is connected to a computer network which has access to the Internet.

‘‘(C) ACQUISITION OR OPERATION.—A elementary or secondary school shall be considered to have received funds

under this title for the acquisition or operation of any computer if such funds are used in any manner, directly or

indirectly—

‘‘(i) to purchase, lease, or otherwise acquire or obtain the use of such computer; or

585

‘‘(ii) to obtain services, supplies, software, or other

actions or materials to support, or in connection with,

the operation of such computer.

‘‘(D) MINOR.—The term ‘minor’ means an individual

who has not attained the age of 17.

‘‘(E) CHILD PORNOGRAPHY.—The term ‘child pornography’ has the meaning given such term in section 2256 of

title 18, United States Code.

‘‘(F) HARMFUL TO MINORS.—The term ‘harmful to minors’ means any picture, image, graphic image file, or other

visual depiction that—

‘‘(i) taken as a whole and with respect to minors,

appeals to a prurient interest in nudity, sex, or excretion;

‘‘(ii) depicts, describes, or represents, in a patently

offensive way with respect to what is suitable for minors, an actual or simulated sexual act or sexual contact, actual or simulated normal or perverted sexual

acts, or a lewd exhibition of the genitals; and

‘‘(iii) taken as a whole, lacks serious literary, artistic, political, or scientific value as to minors.

‘‘(G) OBSCENE.—The term ‘obscene’ has the meaning

given such term in section 1460 of title 18, United States

Code.

‘‘(H) SEXUAL ACT; SEXUAL CONTACT.—The terms ‘sexual

act’ and ‘sexual contact’ have the meanings given such

terms in section 2246 of title 18, United States Code.

‘‘(b) EFFECTIVE DATE.—This section shall take effect 120 days

after the date of the enactment of the Children’s Internet Protection

Act.

‘‘(c) SEPARABILITY.—If any provision of this section is held invalid, the remainder of this section shall not be affected thereby.’’.

SEC. 1712. LIMITATION ON AVAILABILITY OF CERTAIN FUNDS FOR LIBRARIES.

(a) AMENDMENT.—Section 224 of the Museum and Library

Services Act (20 U.S.C. 9134(b)) is amended—

(1) in subsection (b)—

(A) by redesignating paragraph (6) as paragraph (7);

and

(B) by inserting after paragraph (5) the following new

paragraph:

‘‘(6) provide assurances that the State will comply with subsection (f); and’’; and

(2) by adding at the end the following new subsection:

‘‘(f) INTERNET SAFETY.—

‘‘(1) IN GENERAL.—No funds made available under this Act

for a library described in section 213(2)(A) or (B) that does not

receive services at discount rates under section 254(h)(6) of the

Communications Act of 1934, as added by section 1721 of this

Children’s Internet Protection Act, may be used to purchase

computers used to access the Internet, or to pay for direct costs

associated with accessing the Internet, for such library unless—

‘‘(A) such library—

586

‘‘(i) has in place a policy of Internet safety for minors that includes the operation of a technology protection measure with respect to any of its computers with

Internet access that protects against access through

such computers to visual depictions that are—

‘‘(I) obscene;

‘‘(II) child pornography; or

‘‘(III) harmful to minors; and

‘‘(ii) is enforcing the operation of such technology

protection measure during any use of such computers

by minors; and

‘‘(B) such library—

‘‘(i) has in place a policy of Internet safety that includes the operation of a technology protection measure

with respect to any of its computers with Internet access that protects against access through such computers to visual depictions that are—

‘‘(I) obscene; or

‘‘(II) child pornography; and

‘‘(ii) is enforcing the operation of such technology

protection measure during any use of such computers.

‘‘(2) ACCESS TO OTHER MATERIALS.—Nothing in this subsection shall be construed to prohibit a library from limiting

Internet access to or otherwise protecting against materials

other than those referred to in subclauses (I), (II), and (III) of

paragraph (1)(A)(i).

‘‘(3) DISABLING DURING CERTAIN USE.—An administrator,

supervisor, or other authority may disable a technology protection measure under paragraph (1) to enable access for bona fide

research or other lawful purposes.

‘‘(4) TIMING AND APPLICABILITY OF IMPLEMENTATION.— ‘‘(A) IN GENERAL.—A library covered by paragraph (1)

shall certify the compliance of such library with the requirements of paragraph (1) as part of the application process for the next program funding year under this Act following the effective date of this subsection, and for each

subsequent program funding year thereafter.

‘‘(B) PROCESS.—

‘‘(i) LIBRARIES WITH INTERNET SAFETY POLICIES

AND TECHNOLOGY PROTECTION MEASURES IN PLACE.—A

library covered by paragraph (1) that has in place an

Internet safety policy meeting the requirements of paragraph (1) shall certify its compliance with paragraph

(1) during each annual program application cycle

under this Act.

‘‘(ii) LIBRARIES WITHOUT INTERNET SAFETY POLICIES AND TECHNOLOGY PROTECTION MEASURES IN

PLACE.—A library covered by paragraph (1) that does

not have in place an Internet safety policy meeting the

requirements of paragraph (1)—

‘‘(I) for the first program year after the effective date of this subsection in which the library applies for funds under this Act, shall certify that it

is undertaking such actions, including any necVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00590 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.005 pfrm03 PsN: HR1033
587

essary procurement procedures, to put in place an

Internet safety policy that meets such requirements; and

‘‘(II) for the second program year after the effective date of this subsection in which the library

applies for funds under this Act, shall certify that

such library is in compliance with such requirements.

Any library covered by paragraph (1) that is unable to

certify compliance with such requirements in such second program year shall be ineligible for all funding

under this Act for such second program year and all

subsequent program years until such time as such library comes into compliance with such requirements.

‘‘(iii) WAIVERS.—Any library subject to a certification under clause (ii)(II) that cannot make the certification otherwise required by that clause may seek a

waiver of that clause if State or local procurement

rules or regulations or competitive bidding requirements prevent the making of the certification otherwise

required by that clause. The library shall notify the Director of the Institute of Museum and Library Services

of the applicability of that clause to the library. Such

notice shall certify that the library will comply with the

requirements in paragraph (1) before the start of the

third program year after the effective date of this subsection for which the library is applying for funds

under this Act.

‘‘(5) NONCOMPLIANCE.—

‘‘(A) USE OF GENERAL EDUCATION PROVISIONS ACT REMEDIES.—Whenever the Director of the Institute of Museum

and Library Services has reason to believe that any recipient of funds this Act is failing to comply substantially with

the requirements of this subsection, the Director may—

‘‘(i) withhold further payments to the recipient

under this Act,

‘‘(ii) issue a complaint to compel compliance of the

recipient through a cease and desist order, or

‘‘(iii) enter into a compliance agreement with a recipient to bring it into compliance with such requirements.

‘‘(B) RECOVERY OF FUNDS PROHIBITED.—The actions

authorized by subparagraph (A) are the exclusive remedies

available with respect to the failure of a library to comply

substantially with a provision of this subsection, and the

Director shall not seek a recovery of funds from the recipient for such failure.

‘‘(C) RECOMMENCEMENT OF PAYMENTS.—Whenever the

Director determines (whether by certification or other appropriate evidence) that a recipient of funds who is subject

to the withholding of payments under subparagraph (A)(i)

has cured the failure providing the basis for the withholding of payments, the Director shall cease the withVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00591 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.005 pfrm03 PsN: HR1033
588

holding of payments to the recipient under that subparagraph.

‘‘(6) SEPARABILITY.—If any provision of this subsection is

held invalid, the remainder of this subsection shall not be affected thereby.

‘‘(7) DEFINITIONS.—In this section:

‘‘(A) CHILD PORNOGRAPHY.—The term ‘child pornography’ has the meaning given such term in section 2256 of

title 18, United States Code.

‘‘(B) HARMFUL TO MINORS.—The term ‘harmful to minors’ means any picture, image, graphic image file, or other

visual depiction that—

‘‘(i) taken as a whole and with respect to minors,

appeals to a prurient interest in nudity, sex, or excretion;

‘‘(ii) depicts, describes, or represents, in a patently

offensive way with respect to what is suitable for minors, an actual or simulated sexual act or sexual contact, actual or simulated normal or perverted sexual

acts, or a lewd exhibition of the genitals; and

‘‘(iii) taken as a whole, lacks serious literary, artistic, political, or scientific value as to minors.

‘‘(C) MINOR.—The term ‘minor’ means an individual

who has not attained the age of 17.

‘‘(D) OBSCENE.—The term ‘obscene’ has the meaning

given such term in section 1460 of title 18, United States

Code.

‘‘(E) SEXUAL ACT; SEXUAL CONTACT.—The terms ‘sexual

act’ and ‘sexual contact’ have the meanings given such

terms in section 2246 of title 18, United States Code.’’.

(b) EFFECTIVE DATE.—The amendment made by this section

shall take effect 120 days after the date of the enactment of this Act.

Subtitle B—Universal Service Discounts

SEC. 1721. REQUIREMENT FOR SCHOOLS AND LIBRARIES TO ENFORCE

INTERNET SAFETY POLICIES WITH TECHNOLOGY PROTECTION MEASURES FOR COMPUTERS WITH INTERNET ACCESS AS CONDITION OF UNIVERSAL SERVICE DISCOUNTS.

(a) SCHOOLS.—Section 254(h) of the Communications Act of

1934 (47 U.S.C. 254(h)) is amended—

(1) by redesignating paragraph (5) as paragraph (7); and

(2) by inserting after paragraph (4) the following new paragraph (5):

‘‘(5) REQUIREMENTS FOR CERTAIN SCHOOLS WITH COMPUTERS HAVING INTERNET ACCESS.—

‘‘(A) INTERNET SAFETY.—

‘‘(i) IN GENERAL.—Except as provided in clause (ii),

an elementary or secondary school having computers

with Internet access may not receive services at discount rates under paragraph (1)(B) unless the school,

school board, local educational agency, or other authority with responsibility for administration of the

school—

589

‘‘(I) submits to the Commission the certifications described in subparagraphs (B) and (C);

‘‘(II) submits to the Commission a certification

that an Internet safety policy has been adopted

and implemented for the school under subsection

(l); and

‘‘(III) ensures the use of such computers in accordance with the certifications.

‘‘(ii) APPLICABILITY.—The prohibition in clause (i)

shall not apply with respect to a school that receives

services at discount rates under paragraph (1)(B) only

for purposes other than the provision of Internet access,

Internet service, or internal connections.

‘‘(iii) PUBLIC NOTICE; HEARING.—An elementary or

secondary school described in clause (i), or the school

board, local educational agency, or other authority

with responsibility for administration of the school,

shall provide reasonable public notice and hold at least

1 public hearing or meeting to address the proposed

Internet safety policy. In the case of an elementary or

secondary school other than an elementary or secondary school as defined in section 14101 of the Elementary and Secondary Education Act of 1965 (20

U.S.C. 8801), the notice and hearing required by this

clause may be limited to those members of the public

with a relationship to the school.

‘‘(B) CERTIFICATION WITH RESPECT TO MINORS.—A certification under this subparagraph is a certification that

the school, school board, local educational agency, or other

authority with responsibility for administration of the

school—

‘‘(i) is enforcing a policy of Internet safety for minors that includes monitoring the online activities of

minors and the operation of a technology protection

measure with respect to any of its computers with

Internet access that protects against access through

such computers to visual depictions that are—

‘‘(I) obscene;

‘‘(II) child pornography; or

‘‘(III) harmful to minors; and

‘‘(ii) is enforcing the operation of such technology

protection measure during any use of such computers

by minors.

‘‘(C) CERTIFICATION WITH RESPECT TO ADULTS.—A certification under this paragraph is a certification that the

school, school board, local educational agency, or other authority with responsibility for administration of the

school—

‘‘(i) is enforcing a policy of Internet safety that includes the operation of a technology protection measure

with respect to any of its computers with Internet access that protects against access through such computers to visual depictions that are—

‘‘(I) obscene; or

590

‘‘(II) child pornography; and

‘‘(ii) is enforcing the operation of such technology

protection measure during any use of such computers.

‘‘(D) DISABLING DURING ADULT USE.—An administrator, supervisor, or other person authorized by the certifying authority under subparagraph (A)(i) may disable the

technology protection measure concerned, during use by an

adult, to enable access for bona fide research or other lawful purpose.

‘‘(E) TIMING OF IMPLEMENTATION.— ‘‘(i) IN GENERAL.—Subject to clause (ii) in the case

of any school covered by this paragraph as of the effective date of this paragraph under section 1721(h) of the

Children’s Internet Protection Act, the certification

under subparagraphs (B) and (C) shall be made—

‘‘(I) with respect to the first program funding

year under this subsection following such effective

date, not later than 120 days after the beginning

of such program funding year; and

‘‘(II) with respect to any subsequent program

funding year, as part of the application process for

such program funding year.

‘‘(ii) PROCESS.— ‘‘(I) SCHOOLS WITH INTERNET SAFETY POLICY

AND TECHNOLOGY PROTECTION MEASURES IN

PLACE.—A school covered by clause (i) that has in

place an Internet safety policy and technology protection measures meeting the requirements necessary for certification under subparagraphs (B)

and (C) shall certify its compliance with subparagraphs (B) and (C) during each annual program

application cycle under this subsection, except that

with respect to the first program funding year after

the effective date of this paragraph under section

1721(h) of the Children’s Internet Protection Act,

the certifications shall be made not later than 120

days after the beginning of such first program

funding year.

‘‘(II) SCHOOLS WITHOUT INTERNET SAFETY POLICY AND TECHNOLOGY PROTECTION MEASURES IN

PLACE.—A school covered by clause (i) that does

not have in place an Internet safety policy and

technology protection measures meeting the requirements necessary for certification under subparagraphs (B) and (C)—

‘‘(aa) for the first program year after the

effective date of this subsection in which it is

applying for funds under this subsection, shall

certify that it is undertaking such actions, including any necessary procurement procedures, to put in place an Internet safety policy

and technology protection measures meeting

the requirements necessary for certification

under subparagraphs (B) and (C); and

591

‘‘(bb) for the second program year after the

effective date of this subsection in which it is

applying for funds under this subsection, shall

certify that it is in compliance with subparagraphs (B) and (C).

Any school that is unable to certify compliance

with such requirements in such second program

year shall be ineligible for services at discount

rates or funding in lieu of services at such rates

under this subsection for such second year and all

subsequent program years under this subsection,

until such time as such school comes into compliance with this paragraph.

‘‘(III) WAIVERS.—Any school subject to subclause (II) that cannot come into compliance with

subparagraphs (B) and (C) in such second year

program may seek a waiver of subclause (II)(bb) if

State or local procurement rules or regulations or

competitive bidding requirements prevent the making of the certification otherwise required by such

subclause. A school, school board, local educational agency, or other authority with responsibility for administration of the school shall notify

the Commission of the applicability of such subclause to the school. Such notice shall certify that

the school in question will be brought into compliance before the start of the third program year

after the effective date of this subsection in which

the school is applying for funds under this subsection.

‘‘(F) NONCOMPLIANCE.— ‘‘(i) FAILURE TO SUBMIT CERTIFICATION.—Any

school that knowingly fails to comply with the application guidelines regarding the annual submission of certification required by this paragraph shall not be eligible for services at discount rates or funding in lieu of

services at such rates under this subsection.

‘‘(ii) FAILURE TO COMPLY WITH CERTIFICATION.—

Any school that knowingly fails to ensure the use of its

computers in accordance with a certification under

subparagraphs (B) and (C) shall reimburse any funds

and discounts received under this subsection for the period covered by such certification.

‘‘(iii) REMEDY OF NONCOMPLIANCE.—

‘‘(I) FAILURE TO SUBMIT.—A school that has

failed to submit a certification under clause (i)

may remedy the failure by submitting the certification to which the failure relates. Upon submittal

of such certification, the school shall be eligible for

services at discount rates under this subsection.

‘‘(II) FAILURE TO COMPLY.—A school that has

failed to comply with a certification as described in

clause (ii) may remedy the failure by ensuring the

use of its computers in accordance with such cerVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00595 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.005 pfrm03 PsN: HR1033
592

tification. 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 COM- PUTERS HAVING INTERNET ACCESS.— ‘‘(A) INTERNET SAFETY.— ‘‘(i) IN GENERAL.—Except as provided in clause (ii),

a library having one or more computers with Internet

access may not receive services at discount rates under

paragraph (1)(B) unless the library—

‘‘(I) submits to the Commission the certifications described in subparagraphs (B) and (C);

and

‘‘(II) submits to the Commission a certification

that an Internet safety policy has been adopted

and implemented for the library under subsection

(l); and

‘‘(III) ensures the use of such computers in accordance with the certifications.

‘‘(ii) APPLICABILITY.—The prohibition in clause (i)

shall not apply with respect to a library that receives

services at discount rates under paragraph (1)(B) only

for purposes other than the provision of Internet access,

Internet service, or internal connections.

‘‘(iii) PUBLIC NOTICE; HEARING.—A library described in clause (i) shall provide reasonable public notice and hold at least 1 public hearing or meeting to

address the proposed Internet safety policy.

‘‘(B) CERTIFICATION WITH RESPECT TO MINORS.—A certification under this subparagraph is a certification that

the library—

‘‘(i) is enforcing a policy of Internet safety that includes the operation of a technology protection measure

with respect to any of its computers with Internet access that protects against access through such computers to visual depictions that are—

‘‘(I) obscene;

‘‘(II) child pornography; or

‘‘(III) harmful to minors; and

‘‘(ii) is enforcing the operation of such technology

protection measure during any use of such computers

by minors.

‘‘(C) CERTIFICATION WITH RESPECT TO ADULTS.—A certification under this paragraph is a certification that the

library—

‘‘(i) is enforcing a policy of Internet safety that includes the operation of a technology protection measure

with respect to any of its computers with Internet access that protects against access through such computers to visual depictions that are—

593

‘‘(I) obscene; or

‘‘(II) child pornography; and

‘‘(ii) is enforcing the operation of such technology

protection measure during any use of such computers.

‘‘(D) DISABLING DURING ADULT USE.—An administrator, supervisor, or other person authorized by the certifying authority under subparagraph (A)(i) may disable the

technology protection measure concerned, during use by an

adult, to enable access for bona fide research or other lawful purpose.

‘‘(E) TIMING OF IMPLEMENTATION.—

‘‘(i) IN GENERAL.—Subject to clause (ii) in the case

of any library covered by this paragraph as of the effective date of this paragraph under section 1721(h) of the

Children’s Internet Protection Act, the certification

under subparagraphs (B) and (C) shall be made—

‘‘(I) with respect to the first program funding

year under this subsection following such effective

date, not later than 120 days after the beginning

of such program funding year; and

‘‘(II) with respect to any subsequent program

funding year, as part of the application process for

such program funding year.

‘‘(ii) PROCESS.—

‘‘(I) LIBRARIES WITH INTERNET SAFETY POLICY

AND TECHNOLOGY PROTECTION MEASURES IN

PLACE.—A library covered by clause (i) that has in

place an Internet safety policy and technology protection measures meeting the requirements necessary for certification under subparagraphs (B)

and (C) shall certify its compliance with subparagraphs (B) and (C) during each annual program

application cycle under this subsection, except that

with respect to the first program funding year after

the effective date of this paragraph under section

1721(h) of the Children’s Internet Protection Act,

the certifications shall be made not later than 120

days after the beginning of such first program

funding year.

‘‘(II) LIBRARIES WITHOUT INTERNET SAFETY

POLICY AND TECHNOLOGY PROTECTION MEASURES

IN PLACE.—A library covered by clause (i) that does

not have in place an Internet safety policy and

technology protection measures meeting the requirements necessary for certification under subparagraphs (B) and (C)—

‘‘(aa) for the first program year after the

effective date of this subsection in which it is

applying for funds under this subsection, shall

certify that it is undertaking such actions, including any necessary procurement procedures, to put in place an Internet safety policy

and technology protection measures meeting

594

the requirements necessary for certification

under subparagraphs (B) and (C); and

‘‘(bb) for the second program year after the

effective date of this subsection in which it is

applying for funds under this subsection, shall

certify that it is in compliance with subparagraphs (B) and (C).

Any library that is unable to certify compliance

with such requirements in such second program

year shall be ineligible for services at discount

rates or funding in lieu of services at such rates

under this subsection for such second year and all

subsequent program years under this subsection,

until such time as such library comes into compliance with this paragraph.

‘‘(III) WAIVERS.—Any library subject to subclause (II) that cannot come into compliance with

subparagraphs (B) and (C) in such second year

may seek a waiver of subclause (II)(bb) if State or

local procurement rules or regulations or competitive bidding requirements prevent the making of

the certification otherwise required by such subclause. A library, library board, or other authority

with responsibility for administration of the library shall notify the Commission of the applicability of such subclause to the library. Such notice

shall certify that the library in question will be

brought into compliance before the start of the

third program year after the effective date of this

subsection in which the library is applying for

funds under this subsection.

‘‘(F) NONCOMPLIANCE.— ‘‘(i) FAILURE TO SUBMIT CERTIFICATION.—Any library that knowingly fails to comply with the application guidelines regarding the annual submission of certification required by this paragraph shall not be eligible for services at discount rates or funding in lieu of

services at such rates under this subsection.

‘‘(ii) FAILURE TO COMPLY WITH CERTIFICATION.—

Any library that knowingly fails to ensure the use of its

computers in accordance with a certification under

subparagraphs (B) and (C) shall reimburse all funds

and discounts received under this subsection for the period covered by such certification.

‘‘(iii) REMEDY OF NONCOMPLIANCE.—

‘‘(I) FAILURE TO SUBMIT.—A library that has

failed to submit a certification under clause (i)

may remedy the failure by submitting the certification to which the failure relates. Upon submittal

of such certification, the library shall be eligible

for services at discount rates under this subsection.

‘‘(II) FAILURE TO COMPLY.—A library that has

failed to comply with a certification as described in

clause (ii) may remedy the failure by ensuring the

595

use of its computers in accordance with such certification. Upon submittal to the Commission of a

certification or other appropriate evidence of such

remedy, the library shall be eligible for services at

discount rates under this subsection.’’.

(c) DEFINITIONS.—Paragraph (7) of such section, as redesignated by subsection (a)(1) of this section, is amended by adding at

the end the following:

‘‘(D) MINOR.—The term ‘minor’ means any individual

who has not attained the age of 17 years.

‘‘(E) OBSCENE.—The term ‘obscene’ has the meaning

given such term in section 1460 of title 18, United States

Code.

‘‘(F) CHILD PORNOGRAPHY.—The term ‘child pornography’ has the meaning given such term in section 2256 of

title 18, United States Code.

‘‘(G) HARMFUL TO MINORS.—The term ‘harmful to minors’ means any picture, image, graphic image file, or other

visual depiction that—

‘‘(i) taken as a whole and with respect to minors,

appeals to a prurient interest in nudity, sex, or excretion;

‘‘(ii) depicts, describes, or represents, in a patently

offensive way with respect to what is suitable for minors, an actual or simulated sexual act or sexual contact, actual or simulated normal or perverted sexual

acts, or a lewd exhibition of the genitals; and

‘‘(iii) taken as a whole, lacks serious literary, artistic, political, or scientific value as to minors.

‘‘(H) SEXUAL ACT; SEXUAL CONTACT.—The terms ‘sexual

act’ and ‘sexual contact’ have the meanings given such

terms in section 2246 of title 18, United States Code.

‘‘(I) TECHNOLOGY PROTECTION MEASURE.—The term

‘technology protection measure’ means a specific technology

that blocks or filters Internet access to the material covered

by a certification under paragraph (5) or (6) to which such

certification relates.’’.

(d) CONFORMING AMENDMENT.—Paragraph (4) of such section

is amended by striking ‘‘paragraph (5)(A)’’ and inserting ‘‘paragraph

(7)(A)’’.

(e) SEPARABILITY.—If any provision of paragraph (5) or (6) of

section 254(h) of the Communications Act of 1934, as amended by

this section, or the application thereof to any person or circumstance

is held invalid, the remainder of such paragraph and the application of such paragraph to other persons or circumstances shall not

be affected thereby.

(f) REGULATIONS.—

(1) REQUIREMENT.—The Federal Communications Commission shall prescribe regulations for purposes of administering

the provisions of paragraphs (5) and (6) of section 254(h) of the

Communications Act of 1934, as amended by this section.

(2) DEADLINE.—Notwithstanding any other provision of

law, the Commission shall prescribe regulations under paraVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00599 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.005 pfrm03 PsN: HR1033
596

graph (1) so as to ensure that such regulations take effect 120

days after the date of the enactment of this Act.

(g) AVAILABILITY OF CERTAIN FUNDS FOR ACQUISITION OF

TECHNOLOGY PROTECTION MEASURES.

(1) IN GENERAL.—Notwithstanding any other provision of

law, funds available under section 3134 or part A of title VI of

the Elementary and Secondary Education Act of 1965, or under

section 231 of the Library Services and Technology Act, may be

used for the purchase or acquisition of technology protection

measures that are necessary to meet the requirements of this

title and the amendments made by this title. No other sources

of funds for the purchase or acquisition of such measures are

authorized by this title, or the amendments made by this title.

(2) TECHNOLOGY PROTECTION MEASURE DEFINED.—In this

section, the term ‘‘technology protection measure’’ has the meaning given that term in section 1703.

(h) EFFECTIVE DATE.—The amendments made by this section

shall take effect 120 days after the date of the enactment of this Act.

Subtitle C—Neighborhood Children’s Internet Protection

SEC. 1731. SHORT TITLE.

This subtitle may be cited as the ‘‘Neighborhood Children’s

Internet Protection Act’’.

SEC. 1732. INTERNET SAFETY POLICY REQUIRED.

Section 254 of the Communications Act of 1934 (47 U.S.C. 254)

is amended by adding at the end the following:

‘‘(l) INTERNET SAFETY POLICY REQUIREMENT FOR SCHOOLS AND

LIBRARIES.—

‘‘(1) IN GENERAL.—In carrying out its responsibilities under

subsection (h), each school or library to which subsection (h) applies shall—

‘‘(A) adopt and implement an Internet safety policy that

addresses—

‘‘(i) access by minors to inappropriate matter on

the Internet and World Wide Web;

‘‘(ii) the safety and security of minors when using

electronic mail, chat rooms, and other forms of direct

electronic communications;

‘‘(iii) unauthorized access, including so-called

‘hacking’, and other unlawful activities by minors online;

‘‘(iv) unauthorized disclosure, use, and dissemination of personal identification information regarding

minors; and

‘‘(v) measures designed to restrict minors’ access to

materials harmful to minors; and

‘‘(B) provide reasonable public notice and hold at least

one public hearing or meeting to address the proposed

Internet safety policy.

‘‘(2) LOCAL DETERMINATION OF CONTENT.—A determination

regarding what matter is inappropriate for minors shall be

made by the school board, local educational agency, library, or

other authority responsible for making the determination. No

597

agency or instrumentality of the United States Government

may—

‘‘(A) establish criteria for making such determination;

‘‘(B) review the determination made by the certifying

school, school board, local educational agency, library, or

other authority; or

‘‘(C) consider the criteria employed by the certifying

school, school board, local educational agency, library, or

other authority in the administration of subsection

(h)(1)(B).

‘‘(3) AVAILABILITY FOR REVIEW.—Each Internet safety policy

adopted under this subsection shall be made available to the

Commission, upon request of the Commission, by the school,

school board, local educational agency, library, or other authority responsible for adopting such Internet safety policy for purposes of the review of such Internet safety policy by the Commission.

‘‘(4) EFFECTIVE DATE.—This subsection shall apply with respect to schools and libraries on or after the date that is 120

days after the date of the enactment of the Children’s Internet

Protection Act.’’.

SEC. 1733. IMPLEMENTING REGULATIONS.

Not later than 120 days after the date of enactment of this Act,

the Federal Communications Commission shall prescribe regulations for purposes of section 254(l) of the Communications Act of

1934, as added by section 1732 of this Act.

Subtitle D—Expedited Review

SEC. 1741. EXPEDITED REVIEW.

(a) THREE-JUDGE DISTRICT COURT HEARING.—Notwithstanding

any other provision of law, any civil action challenging the constitutionality, on its face, of this title or any amendment made by this

title, or any provision thereof, shall be heard by a district court of

3 judges convened pursuant to the provisions of section 2284 of title

28, United States Code.

(b) APPELLATE REVIEW.—Notwithstanding any other provision

of law, an interlocutory or final judgment, decree, or order of the

court of 3 judges in an action under subsection (a) holding this title

or an amendment made by this title, or any provision thereof, unconstitutional shall be reviewable as a matter of right by direct appeal to the Supreme Court. Any such appeal shall be filed not more

than 20 days after entry of such judgment, decree, or order.

This Act may be cited as the ‘‘Miscellaneous Appropriations Act,

2001’’.

MISCELLANEOUS APPROPRIATIONS

Following is explanatory language on H.R. 5666, as introduced

on December 15, 2000.

The conferees on H.R. 4577 agree with the matter included in

H.R. 5666 and enacted in this conference report by reference and

the following description of it.

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DIVISION A

CHAPTER 1

GENERAL PROVISIONS—THIS CHAPTER

The conference agreement includes language which: provides that not more than $100,000 shall be available for guarantees of

private sector rural electrification and telecommunications loans;

clarifies that a housing demonstration program is to be carried out

in Mississippi and Alaska; clarifies that the Initiative for Future

Agriculture and Food Systems shall be used to make grants only

to colleges, universities, or research foundations maintained by a

college or university; makes a technical correction to the Rural

Community Advancement Program to specify that funds may be

used in counties which have received an emergency designation

after January 1, 2000; provides certain transfers under the livestock assistance program; clarifies eligibility for quality losses;

clarifies that Emergency Conservation Program funds previously

appropriated for the Cerro Grande fire can be made available for

drought benefits; clarifies a provision regarding payments to producers that suffered losses because of the insolvency of an agriculture cooperative in the State of California; provides that Burley,

Flue-cured, and Cigar Binder Type 54–55 tobacco will be treated

identically for loan forfeiture purposes; and establishes an effective

date for a provision of the Agricultural Risk Protection Act of 2000

regarding limitations on Burley tobacco quota adjustments. The effective date of these provisions is the date of enactment of the Agriculture, Rural Development, Food and Drug Administration, and

Related Agencies Appropriations Act, 2001.

The conference agreement includes a section maintaining the

eligibility of certain rural areas for U.S. Department of Agriculture

rural housing programs.

The conference agreement includes a section that authorizes a

study on the feasibility of including ethanol, biodiesel, and other

bio-based fuels as part of the Strategic Petroleum Reserve.

The conference agreement includes a section that makes the

City of Wilson, NC, eligible for certain U.S. Department of Agriculture rural development programs.

The conference agreement includes a section that provides

$26,000,000 for the Environmental Quality Incentives Program.

The conference agreement includes a section regarding the operation of the ongoing bovine tuberculosis eradication program. The

intent of the conferees is that funding for this program, which is

financed through the Commodity Credit Corporation, shall provide

a total of not less than $60,259,000.

The conferees expect that, in developing any consumer guidance regarding mercury exposure from seafood consumption, the

Department of Health and Human Services will rely upon the results of more than one relevant study. The Secretary is directed to

submit a report to the Committees on Appropriations by February

28, 2001, on any actions regarding a consumer advisory on this

subject.

The conferees urge USDA’s Animal and Plant Health Inspection Service (APHIS) to uphold approved sanitary and

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phytosanitary measures in relation to shipping and cargo materials

returning to the United States as a result of trade with Cuba. The

conferees urge APHIS to exercise vigilance in the adoption of internal measures to insure that returning containers and shipping materials do not present sanitary or phytosanitary risks to American

agriculture or the environment, and to explore the formation of a

bilateral cooperative agreement with Cuba to provide for pre-departure inspections of containers leaving Cuba. The conferees also encourage APHIS to work in cooperation with the Departments of Agriculture of the states which will serve as the ports of reentry for

these shipping materials and containers.

The conference agreement includes a section that makes funding provided in Section 211(b) of the Agriculture Risk Protection

Act of 2000 (P.L. 106–224) available for the Farmland Protection

Program.

The conference agreement provides an additional $500,000 to

hire additional attorneys for the Trade Practices Division of the Office of the General Counsel to enforce the Packers and Stockyards

Act.

The conference agreement provides an additional $200,000 for

the Grain Inspection, Packers and Stockyards Administration to establish a hog contract library.

The conference agreement includes language making available

funds of the Emergency Watershed Program to accelerate completion of the Hamakua Ditch project in Hawaii.

CHAPTER 2

DEPARTMENT OF JUSTICE

FEDERAL PRISON SYSTEM

SALARIES AND EXPENSES

The conference agreement includes $500,000 for the National

Institute of Corrections (NIC) for a comprehensive assessment of

medical care and incidents of inmate mortality in the Wisconsin

State Prison System.

OFFICE OF JUSTICE PROGRAMS

JUSTICE ASSISTANCE

The conference agreement includes $300,000 to expand the collection of data on prisoner deaths while in law enforcement custody.

COMMUNITY ORIENTED POLICING SERVICES

The conference agreement includes $3,080,000 under this

heading, of which $1,880,000 is for a grant to the Pasadena, California, Police Department for equipment; $200,000 is for a grant to

the City of Signal Hill, California, for equipment and technology for

an emergency operations center; and of which $1,000,000 is for a

grant to the State of Alabama Department of Forensic Sciences for

equipment.

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JUVENILE JUSTICE PROGRAMS

The conference agreement includes $1,000,000 for a grant to

Mobile County, Alabama, for a juvenile court network program.

GENERAL PROVISIONS

Sec. 201. The conference agreement includes a provision making technical changes to Chapter 2 of title II of division B of Public

Law 106–246.

Sec. 202. The conference agreement includes a provision appropriating $10,000,000 to the State of Texas and $2,000,000 to the

State of Arizona to reimburse county and municipal governments

only for Federal costs associated with the handling and processing

of illegal immigration and drug and alien smuggling cases.

Sec. 203. The conference agreement includes $9,000,000 to establishment of the Strom Thurmond Boys & Girls Club National

Training Center.

Sec. 204. The conference agreement includes $500,000 for the

New Hampshire Department of Safety to investigate and support

the prosecution of violations of federal trucking laws.

Sec. 205. The conference agreement includes $4,000,000 for the

State of South Dakota to establish a regional radio system.

DEPARTMENT OF COMMERCE

ECONOMIC AND STATISTICAL ANALYSIS

SALARIES AND EXPENSES

The conference agreement includes $200,000 for the establishment of satellite accounts for the travel and tourism industry.

NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION

OPERATIONS, RESEARCH, AND FACILITIES

The conference agreement includes $750,000 for a study by the

National Academy of Sciences pursuant to H.R. 2090, as passed by

the House of Representatives on September 12, 2000.

In addition, the conferees encourage the National Oceanic and

Atmospheric Administration (NOAA) and the Federal Maritime Administration (FMA) to work collaboratively with the Great Lakes

Science Center in Cleveland, Ohio in support of its Great Lakes

Tour simulator and related education programming.

The conferees also direct the National Oceanic and Atmospheric Administration (NOAA) to develop a plan to establish a program for migrating the 8 mm NEXRAD Level II data archives onto

a modern retrievable media, and to report back to the Committees

on Appropriations by February 1, 2001.

Sec. 206. The conference agreement includes a technical

change to funding provided to the National Marine Fisheries Management Service regarding Stellar sea lion related funding.

Sec. 207. The conference agreement includes $7,500,000 for assistance to certain Alaska fisheries.

Sec. 208. The conference agreement includes $3,000,000 for assistance to certain Hawaii fisheries.

601

Sec. 209. The conference agreement includes a provision regarding the Bering Sea/Aleutian Islands and Gulf of Alaska fisheries.

Sec. 210. The conference agreement includes $500,000 for the

Irish Institute.

Sec. 211. The conference agreement includes $5,000,000 to increase coverage and hours of Radio Free Europe/Radio Liberty

(RFE/RL) and Voice of America (VOA) broadcasts to Russia and

surrounding areas affected by the recent restrictions on media instituted by the Putin regime. In addition, the conference agreement

includes $5,000,000 for Radio Free Asia and the Voice of America

to increase both the quantity and quality of their broadcasts to

China, in accordance with authorization contained in the China

PNTR enacting legislation, Section 701(b)(2) of H.R. 4444.

Before using any of the transfer authority provided in this section and within sixty days of enactment of this act, the Broadcasting Board of Governors shall provide to the Committees on Appropriations a spending plan for the total amount provided. This

plan should emphasize new RL and VOA Russian and related

broadcasts in specific areas most impacted by the recent media restrictions. Also included in the spending plan should be a projection

concerning shortwave and medium wave technology needs in this

newly closed environment. Amounts proposed for transfer to the

Broadcasting Capital Improvements account should be based solely

on increased broadcasting to Russia and surrounding areas and to

China.

RELATED AGENCIES

COMMISSION ON ONLINE CHILD PROTECTION

The conference agreement includes $750,000 for the Commission on Online Child Protection.

SMALL BUSINESS ADMINISTRATION

SALARIES AND EXPENSES

The conference agreement includes $1,000,000 for a grant to

establish an electronic commerce technology distribution center in

Scranton, Pennsylvania. Sec. 212. The conference agreement includes $1,000,000 for the

National Museum of Jazz.

GENERAL PROVISION—THIS CHAPTER

Sec. 213. The conference agreement includes a provision striking sections 406, 635 and 636, and making technical changes to

H.R. 5548.

CHAPTER 3

DEPARTMENT OF DEFENSE

INDIRECT AIRFREIGHT CARRIERS

The conferees urge the Air Mobility Command (AMC) to ensure

that military air freight is moved in the most time efficient manner

602

possible. In furtherance of that goal, the conferees believe that the

Civil Reserve Air Fleet (CRAF) program should admit and encourage indirect airfreight carriers which have demonstrated ability to

provide efficient, cost effective service.

DISTRIBUTIVE TRAINING TECHNOLOGY PROGRAM

Public Law 106–259 provided $29,100,000 in ‘‘Other Procure- ment, Army’’ and $65,700,000 in ‘‘Operation and Maintenance,

Army National Guard’’ for the National Guard Distance Learning

Program. It is the conferees’ intention that the funds appropriated

for this program shall also be available for courseware development

and commercial off-the-shelf (COTS) management system software

and hardware.

BIOLOGICAL WARFARE DEFENSE

The conferees direct that of the funds appropriated in the Department of Defense Appropriations Act, 2001 (Public Law 106–

259) for the Biological Warfare Defense program, under ‘‘Research,

Development, Test and Evaluation, Defense-Wide’’, $2,000,000

shall be used only for sensor development in the Defense Advanced

Research Projects Agency’s Standoff/Bioagent Pathogen Detector

System program.

CANCER RESEARCH

The conferees direct that, using funds appropriated in the Department of Defense Appropriations Act, 2001 for medical research

programs, the Assistant Secretary of Defense (Health Affairs) conduct a study on whether environmental factors, such as air pollutants and electromagnetic radiation, contribute to a higher than

usual rate of incidence of breast cancer in large populations.

BALLISTIC MISSILE DEFENSE ORGANIZATION

In the Department of Defense Appropriations Act, 2001 (Public

Law 106–259), the Congress provided additional funds for National

Missile Defense risk reduction activities. The Defense Department

is reviewing carefully potential enhancements to the NMD test program, including the addition of flight tests as well as the collection

of data on various targets and countermeasures. To support these

flight test program enhancements, the conferees direct that

$3,000,000 of the NMD risk reduction increase be allocated to sensor enhancements and flight test activities outlined in the Arctic

Missile Signature Measurement Program (AMSP).

GENERAL PROVISIONS—THIS CHAPTER

The conference agreement includes a general provision (section

301) allowing obligation of a portion of the fiscal year 2001 procurement funds for the F–22 aircraft, under specified circumstances.

The conference agreement includes a general provision (section

302) which transfers primary jurisdiction over Shemya Island.

The conference agreement includes a general provision (section

303) requiring the Ballistic Missile Defense Organization to purchase no less than 40 PAC–3 missiles, the budgeted quantity, with

fiscal year 2001 appropriated funds.

603

The conference agreement includes a general provision (section

304) which amends section 8133 of the Department of Defense Appropriations Act, 2001 (Public Law 106–259), regarding the amount

of transfer authority available to the Secretary of the Navy for ship

cost changes.

The conference agreement includes a general provision (section

305) which provides the Secretary of a military department with

authority to transfer funds in support of Fisher Houses and Fisher

Suites.

The conference agreement includes a general provision (section

306) providing such sums as required to the Defense Vessel Transfer Program Account for the costs of the lease-sale transfers authorized by the National Defense Authorization Act, 2001.

The conference agreement includes a general provision (section

307) clarifying congressional intent concerning a Gulf War illness

research program.

The conference agreement includes a general provision (section

308) providing $150,000,000 in emergency appropriations to the

Department of Defense, for ‘‘Operation and Maintenance, Navy’’,

for the repair of the U.S.S. Cole, which was severely damaged in

a terrorist attack in the port of Aden, Yemen, on October 12, 2000.

These funds are in addition to any amounts appropriated in the

Department of Defense Appropriations Act, 2001 (Public Law 106–

259), and are designated as an emergency requirement pursuant to

section 251(b)(2)(A) of the Balanced Budget and Emergency Deficit

Control Act of 1985, as amended. In addition to the repair, the

Navy may expend necessary amounts from these funds for the necessary stabilization of the vessel and its transportation to the

United States.

The conference agreement includes a general provision (section

309) making technical corrections to Section 1092 of the National

Defense Authorization Act, 2001, regarding the establishment of an

Aerospace Commission.

The conference agreement includes a general provision (section

310) which provides $2,000,000 only for planning and National Environmental Protection Act documentation for the proposed airfield

and heliport at the Marine Corps Air Ground Task Training Command.

The conference agreement includes a general provision (section

311) which transfers $5,000,000 to carry out the provisions of the

Minuteman Missile National Historic Site Establishment Act of

1999 (Public Law 106–115; 113 Stat. 1540).

The conference agreement includes a general provision (section

312) providing the Secretary of the Air Force with authority to

transfer certain excess property.

The conference agreement includes a general provision (section

313) providing $100,000,000 in emergency appropriations for the

Overseas Contingency Operations Transfer Fund, to meet classified

requirements requested by the Administration. Further details are

provided in a classified annex to the Statement of Managers.

The conference agreement includes a general provision (section

314) providing for the use of up to $3,000,000 for Marine Corps research into nanotechnology for consequence management.

604

The conference agreement includes a general provision (section

315) specifying the use of funds made available in the Department

of Defense Appropriations Act, 2000, for certain defense medical

initiatives.

The conference agreement includes a general provision (section

316) providing for the acquisition of certain real property by the

Secretary of the Navy.

The conference agreement includes a general provision (section

317) regarding the establishment of Marine Fire Training Centers.

The conference agreement includes a general provision (section

318) providing the Navy authority to use funds provided in the Department of Defense Appropriations Act, 2001, for the repair of the

ex-Turner Joy.

The conference agreement includes a general provision (section

319) providing funds to accelerate transition of the information

technology and information services outsourcing activity within the

National Imagery and Mapping Agency.

The conference agreement includes a general provision (section

320) restricting the use of funds provided in the Department of Defense Appropriations Act, 2001 for Air Force radar operations

maintenance and support programs or contracts.

The conference agreement includes a general provision (section

321) providing $1,000,000 for ‘‘Research, Development, Test and

Evaluation, Air Force’’, to develop rapid diagnostic and

fingerprinting techniques along with molecular monitoring systems

for the detection of nosocomial infections.

The conference agreement includes a general provision (section

322), making technical adjustments associated with funding provided in the Department of Defense Appropriations Act, 2001 for

the C3RP initiative.

The conference agreement includes a general provision (section

323) which establishes procedures under which the Departments of

Defense and Interior shall provide the Congress with a comprehensive plan and proposed legislation for expansion of the U.S. Army’s

National Training Center at Fort Irwin, California. These procedures, including specific timelines for developing and implementing

a proposed expansion plan and meeting the requirements of the

Endangered Species and National Environmental Policy Acts, are

the joint recommendations of the Secretaries of Defense and Interior to the Congress.

The Secretaries have informed the Congress that, given the urgency of the national security considerations involved and the significant amount of research and analysis which has already been

conducted, their Departments can expedite the various substantive

and procedural reviews required to implement this expansion. The

conferees commend the Secretaries of Defense and Interior for the

considerable progress made in recent months amongst the various

executive branch agencies involved in this process, and for committing their Departments to meet the specific objectives contained in

the general provision.

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CHAPTER 4

DISTRICT OF COLUMBIA FEDERAL FUNDS

FEDERAL PAYMENT OF THE DISTRICT OF COLUMBIA COURTS

The conference agreement appropriates $400,000 in Federal

funds to the District of Columbia courts to cover the costs of a fire

that broke out on November 22, 2000, in the H. Carl Moultrie I

Courthouse. The appropriation includes $350,000 for capital repairs

and $50,000 for miscellaneous operating expenses in connection

with the fire damage. The conference agreement also includes language that allows the courts to reallocate not more than $1,000,000

of funds already appropriated for fiscal year 2001 in the event the

$400,000 is not sufficient to cover the costs. The fire caused extensive damage to the Superior Court’s Family Division Quality Control Office and less severe damage to six adjacent judges’ chambers,

electrical damage to the court’s cell block area, and damage to electrical and communications wiring.

GENERAL PROVISIONS—THIS CHAPTER

Sec. 401. The conference agreement inserts a new section concerning water and sewer payments by Federal agencies to the District of Columbia and requires the inspector general of each Federal entity to submit quarterly reports to the House and Senate

Committees on Appropriations on the promptness of payment by

the agency for water and sewer services furnished by the District.

Sec. 402. The conference agreement inserts a new section as

requested by District officials that repeals a Federal statute enacted in 1866 to convey certain parcels of land to the District to

be used solely for schools. The property is at 12th and E Streets,

N.E., in the North Lincoln Park neighborhood of Capitol Hill and

is the site of the Lovejoy School which ceased being used as a

school in 1984, 118 years after the land was conveyed. The DC public school system is under contract to sell the property and although the City Council has passed local legislation to repeal the

1866 law, Federal legislation in necessary because the District government does not have the authority to pass legislation affecting a

Federal land interest.

Sec. 403. The conference agreement inserts a new section that

amends language in section 160 of the FY 2000 DC Appropriations

Act concerning the Victims of Violent Crime Compensation Act of

1996 that would have required any unobligated balance in excess

of $250,000 to be transferred to miscellaneous receipts of the U.S.

Treasury. The new section allows the use of $250,000 at the discretion of District officials and requires that amounts in excess of

$250,000 be used in accordance with a plan developed by the District and approved by the House and Senate Committees on Appropriations, the House Committee on Government Reform, and the

Senate Committee on Governmental Affairs. The language also requires that not less than 80 percent of the amounts in excess of

$250,000 be used for direct compensation payments to crime victims.

606

Sec. 404. The conference agreement includes a new section concerning the Reserve Fund for the District of Columbia established

pursuant to the District of Columbia Appropriations Act, 2001

(Public Law 106–522, approved November 22, 2000).

Sec. 405. The conference agreement includes a new section that

conforms the enrollment count of the District of Columbia charter

schools with existing District of Columbia law.

Sec. 406. The conference agreement amends H.R. 4942 by repealing the District of Columbia Appropriations Act, 2001, as contained therein. Since this appropriations Act has already been enacted in H.R. 5633 (Public Law 106–428) including it in H.R. 4942

is no longer necessary.

CHAPTER 5

ENERGY AND WATER DEVELOPMENT

DEPARTMENT OF DEFENSE—CIVIL

DEPARTMENT OF THE ARMY

CORPS OF ENGINEERS—CIVIL

GENERAL INVESTIGATIONS

The conference agreement includes an additional $900,000 for General Investigations. Of the funds provided, $100,000 is for a reconnaissance study of shore protection needs at North Topsail

Beach, North Carolina; $100,000 is for a reconnaissance study for

a water infrastructure project in Passaic County, New Jersey;

$100,000 is for a reconnaissance study of flooding, drainage, and

other related problems in the Cayuga Creek Watershed, New York;

and $600,000 is for a cost-shared feasibility study of the restoration

of the lower St. Anthony’s Falls natural rapids in Minnesota.

CONSTRUCTION, GENERAL

The conference agreement includes an additional $2,750,000 for Construction, General. Of the funds provided, $75,000 shall be

available for planning and design of a project to provide for floodplain evacuation in the watershed of Pond Creek, Kentucky;

$100,000 shall be available for the design of recreation and access

features at the Louisville Waterfront Park in Kentucky; $75,000

shall be available for research on the eradication of Eurasian water

milfoil in Houghton Lake, Michigan; and $500,000 shall be available for a Limited Reevaluation Report for the Central Boca Raton

segment of the Palm Beach County, Florida, shore protection

project. The conferees are concerned that the utter lack of sand on

some stretches of beach in Boca Raton is negatively impacting the

local economy that is dependent on tourism. Therefore, the conferees recommend that the Corps of Engineers proceed as expeditiously as possible to renourish the beach in Boca Raton.

In addition, $2,000,000 of the funds provided shall be available

to initiate design and construction of the Hawaii Water Management Project, including Waiahole Ditch on Oahu, Kau Ditch on

Maui, Pioneer Mill Ditch on Hawaii, and the complex system on

the west side of Kauai.

607

In addition, language has been included which provides that the Secretary of the Army may use up to $5,000,000 of previously

appropriated funds to carry out the Abandoned and Inactive

Noncoal Mine Restoration program authorized by section 560 of

Public Law 106–53.

FLOOD CONTROL, MISSISSIPPI RIVER AND TRIBUTARIES, ARKANSAS, IL- LINOIS, KENTUCKY, LOUISIANA, MISSISSIPPI, MISSOURI, AND TEN- NESSEE

The conference agreement includes an additional $3,500,000

for Flood Control, Mississippi River and Tributaries to be used for

the repair, restoration or maintenance of Mississippi River levees

and for the correction of deficiencies in the mainline Mississippi

River levees.

DEPARTMENT OF THE INTERIOR

BUREAU OF RECLAMATION

WATER AND RELATED RESOURCES

The conference agreement includes an additional $2,000,000

for Water and Related Resources for construction of the Mid-Dakota Rural Water System project in South Dakota.

DEPARTMENT OF ENERGY

ENERGY PROGRAMS

ENERGY SUPPLY

The conference agreement includes an additional $800,000 for

Energy Supply for the Prime, LLC, of central South Dakota, for

final engineering and project development of the integrated ethanol

complex, including an ethanol unit, waste treatment system, and

enclosed cattle feed lot.

SCIENCE

The conference agreement includes an additional $1,000,000

for Science for high temperature superconducting research and development at Boston College.

CHAPTER 6

GENERAL PROVISIONS—THIS CHAPTER

Sec. 601. The conference agreement mandates that not less

than $1,350,000 from funds appropriated under this heading in the

Foreign Operations, Export Financing, and Related Programs Appropriations Act, 2001, shall be available only for the Protection

Project to continue its study of international trafficking, prostitution, slavery, debt bondage and other abuses of women and children.

Sec. 602. Embassy Compensation Authority.—The conference

agreement contains language that authorizes the use of funds appropriated to the account ‘‘Economic Support Fund’’ in Public Law

106–429 for payment to the government of the People’s Republic of

608

China for property loss and damage arising out of the May 7, 1999

incident in Belgrade, Federal Republic of Yugoslavia. These funds

may be made available notwithstanding any other provision of law.

CHAPTER 7

DEPARTMENT OF THE INTERIOR

BUREAU OF LAND MANAGEMENT

LAND ACQUISITION

The conference agreement provides $5,000,000 for land exchanges authorized by Title VI of the Steens Mountain Cooperative

Management and Protection Act.

UNITED STATES FISH AND WILDLIFE SERVICE

RESOURCE MANAGEMENT

The conference agreement provides $500,000 for a grant to the

Center for Reproductive Biology at Washington State University

for basic research on reproduction abnormalities that could be

causing reductions in salmon in the Columbia/Snake River system

due to presence of high estrogen levels in the water. The research

may also be beneficial to human health conditions affected by the

same water borne chemicals.

MULTINATIONAL SPECIES CONSERVATION FUND

The conference agreement provides $750,000 for recently authorized Great Ape conservation activities.

NATIONAL PARK SERVICE

OPERATION OF THE NATIONAL PARK SYSTEM

The conference agreement provides $100,000 for the National

Capital Region to complete a feasibility study and select a preferred alternative site for constructing a boathouse in Arlington

County, Virginia.

The Department of Justice, in cooperation with the City of Alexandria and the National Park Service, is encouraged to seek expeditious settlement with the remaining six landowners on the Alexandria, Virginia waterfront to achieve the urban land use and

design objectives of the city and the National Park Service in bringing this longstanding lawsuit to resolution. In settling these claims,

the Justice Department should use, to the extent authorized by

law, the permanent judgment appropriation established pursuant

to 31 U.S.C. 1304 as the source of any compensation to the landowners that may be required.

NATIONAL RECREATION AND PRESERVATION

The conference agreement provides $1,600,000 for National

Recreation and Preservation. Within the statutory aid account,

$500,000 is specifically for continued activities at the National Constitution Center in Philadelphia, Pennsylvania. The remaining

$1,100,000 is for a grant to the Historic New Bridge Landing Park

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Commission for acquisition of land immediately adjacent to the

Historic New Bridge Landing, which is a site listed on the National

Register of Historic Places and is a site of historic significance in

the revolutionary war.

HISTORIC PRESERVATION FUND

The conference agreement provides $100,000 to be provided to

the Massillon Heritage Foundation, Inc. in Massillon, Ohio. The

Secretary is directed to provide this grant as soon as possible for

critical repair and replacement needs.

CONSTRUCTION

The conference agreement provides $3,500,000 for construction.

Within that amount $1,500,000 is for reconstruction and renovation

at the Stones River National Battlefield and $2,000,000 is for the

Millennium Cultural Cooperative Park in Ohio.

DEPARTMENT OF ENERGY

ENERGY CONSERVATION

The conference agreement provides $300,000 for a grant to the

Oak Ridge National Laboratory/Nevada Test Site Development

Corporation. These funds will be used to develop cooling, refrigeration, and thermal energy management equipment capable of using

natural gas or hydrogen fuels, and to improve the reliability of

heat-activated cooling, refrigeration, and thermal energy management equipment used in combined heating, cooling, and power applications.

RELATED AGENCY

WOODROW WILSON INTERNATIONAL CENTER FOR SCHOLARS

PAYMENT TO ENDOWMENT FUND

The conference agreement provides $5,000,000 for the endowment fund of the Woodrow Wilson International Center for Scholars.

GENERAL PROVISION—THIS CHAPTER

Section 701 appropriates $30 million to the Indian Health

Service, of which $15 million is for Alaska Native alcohol control

and sobriety programs and $15 million is for drug and alcohol prevention and treatment for non-Alaska tribes.

CHAPTER 8

GENERAL PROVISIONS—THIS CHAPTER

The conference agreement provides funding to the Health Resources and Services Administration in the Department of Health

and Human Services, for the construction of the Christian Nurses

Hospice in Brentwood, New York ($400,000).

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The conference agreement provides funding to the Institute of

Museum and Library Services, for expansion of the marine biology

program at the Long Island Maritime Museum ($250,000).

CHAPTER 9

LEGISLATIVE BRANCH

CONGRESSIONAL OPERATIONS

HOUSE OF REPRESENTATIVES

PAYMENTS TO WIDOWS AND HEIRS OF DECREASED MEMBERS OF

CONGRESS

The conference agreement includes the traditional death gratuity for the widow of Herbert H. Bateman, late a Representative

from the State of Virginia, the widow of Bruce F. Vento, late a Representative from the State of Minnesota, and the widow of Julian

C. Dixon, late a Representative from the State of California.

ARCHTECT OF THE CAPITOL

CAPITOL BUILDINGS AND GROUNDS

SALARIES AND EXPENSES

An amount of $1,033,000 is provided to construct an emergency

egress stair from the fourth floor of the Capitol. These funds are

designated as an emergency requirement.

LIBRARY OF CONGRESS

SALARIES AND EXPENSES

The agreement provides $100,000,000 to the Library of Congress to establish a national digital information infrastructure and

preservation program. Of this amount, $25,000,000 is provided immediately and remains available until expended. An additional

amount up to $75,000,000 is provided to match dollar-for-dollar any

non-federal contributions to this program, including in-kind contributions, that are received before March 31, 2003. The information and technology industry that has created this new medium

should be a contributing partner in addressing digital access and

preservation issues inherent in the new digital information environment. This program is a major undertaking to develop standards and a nationwide collecting strategy to build a national repository of digital materials.

The Library is directed to develop a phased implementation

plan for this program jointly with Federal entities with expertise

in telecommunications technology and electronic commerce policy

and with participation of other Federal and non-Federal entities.

After consultation with the Joint Committee on the Library, membership of which is changed to include the chair of the Legislative

Subcommittee of the Committee on Appropriations of the House of

Representatives, the Library shall seek approval of the program

plan from the Committee on House Administration, the Committee

on Rules and Administration of the Senate, and the Committees on

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Appropriations of the House of Representatives and the Senate.

The Library of Congress is authorized to expend up to $5,000,000,

before approval of the plan, for the development of the plan and for

collecting or preserving digital information that may otherwise

vanish during the plan development and approval cycle.

The overall plan should set forth a strategy for the Library of

Congress, in collaboration with other Federal and non-Federal entities, to identify a national network of libraries and other organizations with responsibilities for collecting digital materials that will

provide access to and maintain those materials. In addition to developing this strategy, the plan shall set forth, in concert with the

Copyright Office, the policies, protocols, and strategies for the longterm preservation of such materials, including the technological infrastructure required at the Library of Congress. In developing the

plan, the Library should be mindful of the conclusions drawn in a

recent National Academy of Sciences report concerning the Library’s trend toward insularity and isolation from its clients and

peers in the transition toward digital content.

GENERAL PROVISIONS—THIS CHAPTER

The conference agreement includes a section concerning the

Civil Service Retirement System and the Federal Employees Retirement System. Under current law, certain service as an employee of a congressional campaign committee performed before December 12, 1980 is creditable under the Civil Service Retirement

System (CSRS), provided that the applicant makes the required

employee contributions to the Civil Service Retirement and Disability Fund. The conference report extends the date of eligible

service to December 31, 1990 and allows service that began after

1983 to be creditable under the Federal Employees Retirement System (FERS). The provision also permits an employee of a legislative service organization of the House of Representatives to have

such service credited under CSRS or FERS (as applicable), upon

payment of the required employee contributions to the retirement

fund.

The conference agreement amends, at the request of the managers on the part of the Senate, the amount provided for Senate

‘‘miscellaneous items’’ in the 2001 Legislative Branch Appropriations Act by striking ‘‘$8,655,000’’ and inserting ‘‘$25,155,000’’. The

managers on the part of the House have receded to the request of

the Senate.

The conferees have included a new provision relating to the application of Senate procedure to conference reports.

CHAPTER 10

DEPARTMENT OF DEFENSE—MILITARY CONSTRUCTION

The conferees provide a total of $43,500,000 to the Department

of Defense for Planning and Design, Military Construction, and

Family Housing. These amounts are provided as follows:

Account/location/facility Amount

Military Construction, Army:

Planning and Design for Efficient Basing in Europe .................. $25,000,000

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Account/location/facility Amount

Presidio of Monterey: Information Management Computer Center ................................................................................................. 2,000,000

Military Construction, Air Force: MacDill AFB, Florida: Runway

Improvements ..................................................................................... 12,000,000

Military Construction, Army National Guard:

Helena, Montana: Fixed Wing Parking Apron ............................. 3,000,000

Fort Lewis, Washington: Planning and Design for 66th Aviation Brigade Readiness Center .................................................. 1,500,000

Total ............................................................................................. 43,500,000

LAND TRANSFERS

The conferees include two provisions, sections 1002 and 1003

which direct the Department of Interior to transfer, without consideration, parcels of public domain land to the Department of the

Army and the Department of the Air Force. Section 1003 transfers

land surrounding the Yakima Training Center in Washington to

the Department of the Army, and section transfers land located

near Cannon AFB in New Mexico to the Department of the Air

Force. Both transfers will facilitate military training exercises.

CHAPTER 11

DEPARTMENT OF TRANSPORTATION

GENERAL PROVISIONS—THIS CHAPTER

The conference agreement includes a provision that clarifies

that the Dulles corridor project shall include a rail extension from

the West Falls Church, Virginia metrorail station to Tysons Corner, Virginia.

The conference agreement includes a provision that amends

item 630 of section 1602 of Public Law 105–178 regarding a highway project in Buffalo, New York.

The conference agreement directs the Secretary of Transportation to credit the State of Arkansas with the fair market value

of land in Fort Chaffee, Arkansas, incorporated as right of way on

the U.S. 71 relocation project, for the state share of the relocation

project.

The conference agreement includes an appropriation of

$2,500,000 from the airport and airway trust fund for various airport improvements at the Huntsville International Airport in Alabama.

The conference agreement includes an appropriation of

$1,000,000 from the mass transit account of the highway trust fund

for the Southeast Corridor light rail project in Dallas, Texas.

The conference agreement includes a provision that would designate the Ports-to-Plains corridor within the State of Texas if the

Texas Transportation Commission does not designate that corridor

within the State of Texas by June 30, 2001. The Federal Highway

Administration is expected to submit to the House and Senate

Committees on Appropriations, the Senate Environment and Public

Works Committee, and the House Transportation and Infrastructure Committee a recommendation for the remaining elements of

the Ports-to-Plains corridor by September 30, 2001 should the

states of New Mexico, Colorado, Oklahoma and Texas not reach a

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unified consensus on the designation of the Ports-to-Plains corridor

from Dumas, Texas to Denver, Colorado. The Federal Highway Administration’s recommendation shall also include the basis for its

recommendation.

The conference agreement includes an appropriation of $3,000,000 from the mass transit account of the highway trust fund

for the Newark-Elizabeth rail link project in New Jersey.

The conference agreement includes a provision that waives the

requirements of section 5309(m)(3)(C) of title 49, United States

Code, for the capital investment grants made available in the Department of Transportation and Related Agencies Appropriations

Act, 2001 (Public Law 106–346). The provision also makes eligible

for highway bridge replacement and rehabilitation program funds

in fiscal year 2001 those projects specified in House report 106–

940, the conference report accompanying the Department of Transportation and Related Agencies Appropriations Act, 2001 (Public

Law 106–346). The provision also amends section 378 of the Department of Transportation and Related Agencies Appropriations

Act, 2001 by inserting after ‘‘U.S. 101’’ the following: ‘‘and Interstate 5 Trade Corridor’’.

The conference agreement includes an appropriation of $4,000,000 from the highway trust fund for commercial remote

sensing products and spatial information technologies authorized in

section 5113 of Public Law 105–178, as amended.

The conference agreement includes a provision that permits

Amtrak to continue leasing vehicles from the General Services Administration’s interagency fleet management system in fiscal year

2001 and for each fiscal year thereafter that Amtrak continues to

receive a federal operating grant.

The conference agreement includes a provision which clarifies

financial and project management authority for a project funded in

the Department of Transportation and Related Agencies Appropriations Act, 2001. The agreement requires the Secretary of Transportation to transfer to the City of Oshkosh, Wisconsin the $575,000

previously appropriated for removal of the Fox River Bridge, and

to assume no management responsibility for this project.

The conference agreement includes a provision authorizing the

Secretary of Transportation to issue a certificate of documentation

with endorsement for employment in the coastwise trade for the M/

V Wells Gray and the Annandale.

The conference agreement includes a provision authorizing the

Administrator of the General Services Administration to convey

Coast Guard property in Middletown, California to Lake County,

California.

The conference agreement includes a provision authorizing the

Administrator of the General Services Administration or the Commandant of the U.S. Coast Guard to convey to the Town of Nantucket, Massachusetts part of U.S. Coast Guard LORAN Station

Nantucket and additional land located in Nantucket.

The conference agreement includes a provision authorizing the

Administrator of the General Services Administration or the Commandant of the U.S. Coast Guard to convey to the City of Newburyport, Massachusetts the Plum Island Boat House and the

Plum Island Lighthouse, located in Essex County, Massachusetts.

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The conference agreement includes a provision authorizing the

Administrator of General Services Administration to transfer to the

National Oceanic and Atmospheric Administration the property

known as Coast Guard Station Scituate in Massachusetts, contingent upon the relocation of Coast Guard Station Scituate to a suitable site.

The conference agreement includes a provision which extends

from 2002 to 2004 the Coast Guard’s current practice relating to

the disposal of dry bulk cargo residue on the Great Lakes; requires

a study on the effectiveness of the current practice; and authorizes

the promulgation of regulations to regulate incidental discharges of

such cargo into the Great Lakes, taking into account the findings

of the study required in this section.

The conference agreement includes a provision that amends

the appointment process and qualifications for individuals serving

on the Great Lakes Pilotage Advisory Committee.

The conference agreement includes a provision that requires

only a vessel of the United States may perform certain specified escort operations and towing assistance, except for a vessel in distress.

The conference agreement includes a provision authorizing the expenditure of $100,000 in fiscal year 2001 funding for Coast

Guard environmental compliance and restoration to reimburse the

owner of the former Coast Guard lighthouse facility in Cape May,

New Jersey for costs incurred for cleanup of lead contaminated soil.

The Department of Transportation and Related Agencies Appropriations Act, 2001 included $100,000 for this purpose.

The conference agreement includes an appropriation of $2,400,000, to be derived from the Highway Trust Fund, for the

planning, development and construction of rural farm-to-market

roads in Tulare County, California. The non-federal share of such

improvements shall be 20 percent.

The Department of Transportation is instructed that the grantee for the Nashua, New Hampshire project identified in section 378

of Public Law 106–346 shall be the City of Nashua, New Hampshire.

The conference agreement includes a provision authorizing the

Coast Guard to transfer not to exceed $200,000 to the Traverse

City Area Public School District for the demolition and removal of

Building 402 at former Coast Guard property in Traverse City,

Michigan. The provision makes the transfer contingent upon receipt by the Coast Guard of a detailed, fixed price estimate for this

work. Funding in the amount of $200,000 was appropriated for this

purpose in the Department of Transportation and Related Agencies

Appropriations Act, 2001.

The conference agreement includes an appropriation of

$500,000 from the mass transit account of the highway trust fund

for buses and bus facilities at Alabama A&M University. These

funds are to be available until expended.

The conference agreement includes a provision which directs

the Federal Transit Administration to distribute $7,047,502 to an

urbanized area over 200,000 in population which did not receive

fiscal year 1999, 2000 and 2001 fixed guideway modernization

funds to which it was lawfully entitled, prior to the formula apporVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00618 Fmt 6601 Sfmt 6601 E:\HR\OC\HR1033.005 pfrm03 PsN: HR1033
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tionment of ‘‘Fixed guideway modernization’’ funds in fiscal year

2002.

The conference agreement includes a provision that requires

that airport improvement program formula changes provided under

Public Law 106–181 and defined in section 104 of that Act shall be

applied without regard to the overall funding levels for the airport

improvement program in fiscal year 2001.

The conference agreement includes a provision that amends

item number 473 contained in section 1602 of the Transportation

Equity Act for the 21st Century relating to a high priority project

in Minnesota.

The conference agreement includes a provision that delays the

issuance of the final train horn rule until July 1, 2001. This issue

will not be addressed again in subsequent legislation. The conference agreement provides $8,700,000 for four transportation projects in Texas, Minnesota, Wisconsin, Indiana and

Colorado.

CHAPTER 12

GENERAL SERVICES ADMINISTRATION

REAL PROPERTY ACTIVITIES

FEDERAL BUILDINGS FUND

The conference agreement includes a new provision providing $2,070,000 for the renovation and redevelopment of portions of the

historic Federal building in Terre Haute, Indiana. The conferees direct the General Services Administration to report to the Committees on Appropriations by March 15, 2001 on steps it will take to

ensure long-term Federal occupancy of this building.

DEPARTMENT OF THE TREASURY

UNITED STATES CUSTOMS SERVICE

OPERATIONS, MAINTENANCE AND PROCUREMENT, AIR AND MARINE

INTERDICTION PROGRAMS

The conference agreement includes $7,000,000 for necessary

expenses related to the procurement of two aircraft and related

equipment expenses at the Customs National Aviation Center in

Oklahoma City, Oklahoma. The conference agreement provides

that none of the funds shall be available for obligation until an expenditure plan is submitted for approval to the Committees on Appropriations.

UNITED STATES POSTAL SERVICE

TINTON FALLS, NEW JERSEY

The conferees are aware that the Postal Service has identified

Tinton Falls, New Jersey as a town to receive a new postal facility,

but are concerned that this need for a new postal facility is not

being addressed in a timely manner. The conferees urge the Postal

Service to give this project a high priority in its capital facility plan

for the next fiscal year.

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CHAPTER 13

DEPARTMENT OF VETERANS AFFAIRS

DEPARTMENTAL ADMINISTRATION

CONSTRUCTION, MINOR PROJECTS

The conferees have included $8,840,000 for Construction,

minor projects. Of this amount, $8,440,000 is recommended for

projects related to the integration of facilities at the Boston VA

Medical Center. These funds are to supplement amounts previously

provided for minor construction projects in fiscal year 2001 in Veterans Integrated Service Network 1.

In addition, the conferees recommend $400,000 to be used towards construction costs of a cover for the Riverside National Cemetery amphitheater.

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

COMMUNITY PLANNING AND DEVELOPMENT

EMPOWERMENT ZONES/ENTERPRISE COMMUNITIES

Provides an additional $110,000,000 for urban empowerment

zones, as authorized by the Taxpayer Relief Act of 1997.

COMMUNITY DEVELOPMENT FUND

Language is included which makes a technical amendment to

an economic development initiative grant provided in Public Law

106–377.

Language is included which transfers unobligated grant funds

from a specific city to a county in order to carry out the purposes

for which the grant was made.

The conferees have amended Public Law 106–377 to provide an

additional $66,128,000 for targeted Economic Development Initiative grants under the terms and conditions as provided in Public

Law 106–377, as follows:

—$425,000 for Project Home, Allied-Dunn’s Marsh Neighborhood Center and Prairie Crossing low income housing rehabilitation project in Wisconsin;

—$1,000,000 for F.E.A.T. for the establishment of the

Merle Travis Park in Muhlenberg County, Kentucky;

—$750,000 for the Washington County Commission for the

World Wildlife Educational Museum addition to the Dixie

Chapter in St. George, Utah;

—$250,000 for the Henry Ford Museum—Greefield Village

in Dearborn, Michigan for expenses related to the design, planning and construction of the ‘‘Great American Road Exhibit’’;

—$6,000,000 for Shepherd College in Shepherdstown,

West Virginia for construction, related activities, and programs

at the Scarborough Library;

—$633,000 for the State of Nevada to establish a statewide computer database of utilities and infrastructure needs

for rural communities and Indian reservations;

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—$850,000 for the University of South Carolina for the operation of an historical archive at the University of South

Carolina, Department of Archives, South Carolina; —$500,000 for the Idaho City Parks and Recreation Commission for the Idaho City Mine Tailings Site Restoration

Project and Park in Idaho City, Idaho; —$250,000 for the Swiss Center of North America, New

Glarus, Wisconsin;

—$750,000 for the City of Madison, Wisconsin for the Troy

Housing and Gardens Development; —$750,000 for the City of New Loft, Wisconsin for acquisition and restoration of a teen facility; —$2,000,000 for the City of Pasadena, Texas for a Police

Academy driver training track; —$1,300,000 for the City of Baytown, Texas for its Emergency Operations Center; —$750,000 for the City of Las Vegas, Nevada for downtown development initiatives; —$800,000 to support the Innovative Brownfields Site Assessment and Remediation Technology Demonstration at the

Defense Fuel Support Point, in Lynn Haven, Florida; —$200,000 for the Tri-County Agricultural Complex in

Calhoun, Gulf, and Liberty Counties, Florida —$100,000 for the CCTV Central Coast partnership (California) to promote environmentally friendly, sustainable agriculture practices; —$600,000 for the Central California Coast Research Partnership; —$500,000 for the Santa Barbara County, California

Water Agency for costs associated with emergency sediment removal in the Twitchell Reservoir;

—$500,000 for the City of Paso Robles, California for the

Oak Parks Housing Project for modernization and rehabilitation projects;

—$100,000 for the Cambridge, Massachusetts Redevelopment Authority public spaces initiative;

—$1,000,000 for the Sidney R. Yates and Addie Yates Exhibition Center at the Field Museum in Chicago, Illinois;

—$750,000 for the Greater Dwight Development Corporation in New Haven, Connecticut for its child care center and

offices;

—$500,000 for methamphetamine site clean-up activities

of the Fresno, California Sheriff’s Department;

—$3,000,000 to the Cross Valley Rail Corridor Joint Powers Authority, California for rehabilitation of the San Joaquin

Railroad;

—$1,000,000 to the City of Monterrey, California to upgrade 911 emergency response services;

—$2,035,000 for Eastern Connecticut University for upgrade of its technology systems;

—$500,000 for the City of Vernon, Connecticut for

brownfields remediation activities;

—$1,000,000 for the Mystic Seaport Maritime Education

and Research Center in Mystic, Connecticut;

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—$2,700,000 for the Southeastern Pennsylvania Consortium on Higher Education for a collaborative Math and Science

Institute;

—$900,000 for the Town of Towamencin, Pennsylvania for

its urban park and recreation recovery project;

—$1,400,000 for Temple University, Pennsylvania for its

Center for a Sustainable Environment;

—$600,000 for the Township of Plainsboro, New Jersey for

its Nature and Education Center;

—$300,000 for the Saint Mary’s County, Maryland River

Project;

—$450,000 for the Truitt Laboratory of the Chesapeake

Biological Laboratory for the Bayscapes Habitat Reconstruction

Project, Maryland;

—$800,000 for the Edmonds Community College Foundation, Washington for a Center on Families;

—$400,000 for the Access Community Health Network in

Chicago, Illinois;

—$500,000 for the City of Seymour, Connecticut Police Department for upgrades of law enforcement technology;

—$2,500,000 for the Town of Beacon Falls, Connecticut for

the Pinebridge Industrial Park;

—$150,000 for the City of Sacramento, California for the

Emerging Technology Institute;

—$200,000 for the Kansas City, Kansas forensics crime

laboratory;

—$700,000 for the Kansas City, Kansas Humane Society

for expenses associated with relocation of its facilities;

—$350,000 for the expansion of the Dunbar Community

Center in Springfield, Massachusetts;

—$500,000 to the West Virginia High Technology Consortium Foundation, Inc. for high priority economic development

initiatives including land acquisition;

—$1,000,000 for the Medford Area School District, Wisconsin for after-school programs;

—$300,000 for the North Central Wisconsin Workforce Development Board for education, training, counseling, emergency assistance and related services for displaced workers and

their families in central Wisconsin;

—$250,000 for the Portage County, Wisconsin Business

Council Foundation in Stevens Point for activities including

construction and training related to a business education and

training center and a regional training clearinghouse;

—$200,000 for the Development Association of Superior/

Douglas Counties, Wisconsin for a microenterprise loan and

technical assistance fund;

—$500,000 for the Chippewa County Economic Corporation in Wisconsin for construction of a workforce development

center;

—$365,000 for the City of Wausau, Wisconsin for

brownfields remediation in Marathon County;

—$1,000,000 for the Unity School District, Balsam Lake,

Wisconsin for after-school activities;

619

—$100,000 for the Marathon County, Wisconsin Sheriff’s

Department for Central Wisconsin drug prevention initiatives;

—$500,000 for the Santa Ana, California Police Department crime analysis unit;

—$1,300,000 for the City of Jackson, Mississippi for its

brownfields clean-up activities;

—$500,000 for Essex County, Massachusetts for its wastewater and combined sewer overflow program;

—$500,000 for Pacific Union College, California for the

Napa Valley Resource Center job training program;

—$400,000 for the establishment of the Wolfe Center for

teen substance abuse in Napa County, California;

—$500,000 for Dyer, Indiana for a water diversion project;

—$500,000 for the Community and Family Resource Center renovation project in Newberg, Oregon;

—$2,000,000 for the George Meany Center for Labor Studies in Silver Spring, Maryland;

—$1,000,000 for the Rhode Island State Police for technology upgrade initiatives;

—$2,000,000 for the War Memorial Museum in Milwaukee, Wisconsin;

—$500,000 for the Mott Community College Workforce Development Institute in Michigan;

—$1,000,000 for Maricopa County Community College for

the Achieving a College Education Initiative (ACE) in Arizona;

—$1,000,000 to Coffee County, Tennessee for the Coffee

County Industrial Park;

—$1,500,000 to the Tennessee Fire Services and Codes Enforcement Academy in Bedford County, Tennessee;

—$600,000 to the 21st Century Council of Lawrence for

the Lawrence County Industrial Park in Tennessee;

—$350,000 to the Fayetteville-Lincoln County Library

Board in Tennessee for the Lincoln County Library;

—$150,000 to the University of Tennessee Center for Business and Economic Research to study the economic impact of

alternative management policies of TVA-managed lakes in

rural East Tennessee;

—$2,500,000 to Winston-Salem University in WinstonSalem, North Carolina for the reconstruction of St. Phillips

Church ($2,000,000) and Atkins House ($500,000);

—$1,575,000 to Escambia County in Florida for development costs for infrastructure of Central Commerce Park;

—$1,000,000 to Ashland University in Ashland, Ohio for

rehabilitation and expansion of the Kettering Science Center;

—$640,000 to Waukegan, Illinois for renovation of the historic Genesee Theater;

—$1,155,000 to the Tampa Housing Authority in Tampa,

Florida for costs associated with the Tom Dyer Elderly Housing Redevelopment Project.

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DEPARTMENT OF THE TREASURY

COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS

COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS FUND PROGRAM

ACCOUNT

Increases the cap on administrative expenses by $1,000,000, in

order to accommodate increased responsibilities assigned to the

Fund by the New Markets Initiative. The conferees direct the CDFI

Fund to submit a report to the Committees on Appropriations within 60 days of enactment describing plans for carrying out these responsibilities, including staffing and resource requirements. The

conferees would consider supplemental appropriations for this purpose if CDFI demonstrates that additional funds are needed.

ENVIRONMENTAL PROTECTION AGENCY

SCIENCE AND TECHNOLOGY

Language is included which provides $1,000,000 in additional

appropriations for the continuation of the South Bronx Air Pollution Study being conducted by New York University.

ENVIRONMENTAL PROGRAMS AND MANAGEMENT

Language is included which makes a technical correction to a

grant provided to the San Bernardino Valley Municipal Water District in Public Law 106–377.

STATE AND TRIBAL ASSISTANCE GRANTS

Language is included which clarifies that funds appropriated

for infrastructure needs in the New York City watershed shall be

awarded under section 1443(d) of the Safe Drinking Water Act, as

amended.

Language is included which makes funds appropriated in Public Law 106–377 for a specific project in Indiana available for an

alternative project.

The conferees have amended Public Law 106–377 to include an

additional $20,630,000 to communities or other entities for construction of water and wastewater treatment facilities. Cost share

requirements and all other terms and conditions provided in Public

Law 106–377 for these grants shall also apply to these grants, distributed as follows:

1. $1,000,000 for combined sewer overflow infrastructure improvements on the Connecticut River.

2. $7,280,000 to Grand Rapids, Michigan for combined sewer

overflow infrastructure improvements.

3. $3,000,000 for water delivery system infrastructure improvements for the cities of Arcadia and Sierra Madre, California.

4. $7,850,000 for wastewater facility, drinking water, and

water system delivery infrastructure improvements in Milton

Township ($5,000,000), the Village of McDonald ($350,000), and the

Village of Wellsville ($2,500,000), Ohio.

5. $1,000,000 for wastewater treatment infrastructure improvements in Carmel, Indiana.

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FEDERAL EMERGENCY MANAGEMENT AGENCY

EMERGENCY MANAGEMENT PLANNING AND ASSISTANCE

Language is included which provides $100,000,000 for new fire

fighting programs as authorized by the Federal Fire Prevention

and Control Act, as amended.

CHAPTER 14

GENERAL PROVISIONS—THIS CHAPTER

The conference agreement includes the adoption of H. Con.

Res. 234 by the Senate.

The conference agreement includes a new provision relating to

the application of the Federal Reports Elimination and Sunset Act

of 1995 to certain reports.

The conferees direct the Comptroller General of the United

States to (1) ascertain the ownership of the West Campus Buildings of the Saint Elizabeth’s Hospital complex in the District of Columbia; (2) review and comment on existing cost estimates for

mothballing/stabilization, phase II environmental mediation, phase

II archaeological study, environmental impact study, and land use

study; (3) report on any existing historic designations and corresponding responsibilities; and (4) identify action required to facilitate transfer of the property. The conferees request that the report be completed and submitted to the House and Senate Committees on Appropriations within 45 days of the enactment of this Act.

The conference agreement includes a new provision rescinding

0.22 percent of the discretionary budget authority provided (or obligation limit imposed) for fiscal year 2001, except for those programs, projects, and activities which are specifically exempted. The

provision exempts from rescission the Military Personnel accounts

of the Department of Defense Appropriations Act, 2001, and fiscal

year 2001 amounts for activities funded in the Departments of

Labor, Health and Human Services, and Education, and Related

Agencies Appropriations Act.

DIVISION B

TITLE I

The conference agreement includes a section that provides

greater availability of food assistance in day care centers by modifying eligibility criteria in the Child and Adult Care Food Program.

The conference agreement includes a section to authorize a

pilot program through the Summer Food Service Program to examine whether reducing burdensome paperwork would increase the

availability of food assistance for children during the summer who,

during the school year, have access to meals through the School

Lunch Program.

The conference agreement includes language which authorizes

the Secretary of the Interior to conduct a feasibility study for a

Sacramento River, California, diversion project.

The conference agreement includes language which modifies

the authorization for the Saint Francis River Basin, Missouri and

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Arkansas, project to expand the boundaries of the project to include

Ten- and Fifteen-Mile Bayous near West Memphis, Arkansas.

The conference agreement includes language which authorizes

the Secretary of the Army to enter into an agreement to permit the

City of Alton, Illinois, to construct recreational facilities at the Melvin Price Lock and Dam.

The conference agreement includes language which authorizes

the Secretary of the Interior, in cooperation with Washoe County,

Nevada, to participate in the planning, design, and construction of

the Truckee Watershed Reclamation Project.

The conference agreement includes language which authorizes

the Secretary of the Army to widen and deepen the Alafia Channel

in Tampa Harbor, Florida.

The conference agreement includes language which authorizes

a number of environmental infrastructure projects.

The conference agreement includes language which authorizes

the Secretary of the Army to provide technical and financial assistance to carry out projects to improve the water quality in the Florida Keys National Marine Sanctuary.

The conference agreement includes language to provide for the

restoration of the San Gabriel Basin in California.

The conference agreement includes language which authorizes

the Secretary of the Army to participate in studies and the planning and design of projects which offer a long-term solution to the

problem of groundwater pollution caused by perchlorates.

The conference agreement includes language which authorizes

the construction of fish passage facilities at the New Savannah

Bluff Lock and Dam in Georgia and South Carolina.

The conference agreement includes language which provides

for the extinguishment of reversionary interests and use restrictions at the Port of Umatilla, Oregon.

The conference agreement includes language which repeals

section 101(b)(6) of the Water Resources Development Act of 2000.

The conference agreement includes language which directs the

Secretary of the Army to reimburse the East Bay Municipal Water

District for the Federal share of costs incurred by the district for

the Penn Mine, Calaveras County, California, aquatic ecosystem

restoration project.

The conference agreement includes language which authorizes

the Secretary of the Army to construct intake facilities at Greers

Ferry Lake, Arkansas, for the benefit of Lonoke and White Counties in Arkansas.

The conference agreement includes language which authorizes

the Secretary of the Army to provide the non-Federal sponsor of

the Chehalis River and Tributaries, Washington, project credit toward the non-Federal share of the cost of the project for work carried out by the non-Federal sponsor before the date of enactment

of a project cooperation agreement.

Section 119 includes a technical correction to permit the National Park Service to issue a grant to the city of Ocean Beach,

New York.

Section 120 directs the National Park Service to work with

Fort Sumter Tours, Inc., the concessionaire at Fort Sumter National Monument in South Carolina, on an amicable solution to the

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current legal dispute. In addition, the Director shall immediately

extend the current contract through March 15, 2001, and for 180

days if the final settlement is agreed to by both parties.

Section 121 amends title VIII of the Department of the Interior

and Related Agencies Appropriations Act, 2001 to derive funding

under that title from the Land and Water Conservation Fund. This

reference was inadvertently omitted from the original legislation.

Section 122 amends the Energy Policy Act of 1992 to include

a reference to liquid fuels domestically produced from natural gas.

Section 123 incorporates by reference the text of the bill H.R.

4904, as passed by the House of Representatives on September 26,

2000, expressing the policy of the United States regarding the U.S.

relationship with Native Hawaiians. The text of H.R. 4904 is as follows:

Be it enacted by the Senate and House of Representatives of the

United States of America in Congress assembled.

SECTION 1. FINDINGS.

Congress makes the following findings:

(1) The Constitution vests Congress with the authority to

address the conditions of the indigenous, native people of the

United States.

(2) Native Hawaiians, the native people of the Hawaiian

archipelago which is now part of the United States, are indigenous, native people of the United States.

(3) The United States has a special trust relationship to

promote the welfare of the native people of the United States,

including Native Hawaiians.

(4) Under the treaty making power of the United States,

Congress exercised its constitutional authority to confirm a treaty between the United States and the government that represented the Hawaiian people, and from 1826 until 1893, the

United States recognized the independence of the Kingdom of

Hawaii, extended full diplomatic recognition to the Hawaiian

government, and entered into treaties and conventions with the

Hawaiian monarchs to govern commerce and navigation in

1826, 1842, 1849, 1875, and 1887.

(5) Pursuant to the provisions of the Hawaiian Homes

Commission Act, 1920 (42 Stat. 108, chapter 42), the United

States set aside 203,500 acres of land in the Federal territory

that later became the State of Hawaii to address the conditions

of Native Hawaiians.

(6) By setting aside 203,500 acres of land for Native Hawaiian homesteads and farms, the Act assists the Native Hawaiian community in maintaining distinct native settlements

throughout the State of Hawaii.

(7) Approximately 6,800 Native Hawaiian lessees and their

family members reside on Hawaiian Home Lands and approximately 18,000 Native Hawaiians who are eligible to reside on

the Home Lands are on a waiting list to receive assignments of

land.

(8) In 1959, as part of the compact admitting Hawaii into

the United States, Congress established the Ceded Lands Trust

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tions of Native Hawaiians. Such trust consists of approximately

1,800,000 acres of land, submerged lands, and the revenues derived from such lands, the assets of which have never been completely inventoried or segregated.

(9) Throughout the years, Native Hawaiians have repeatedly sought access to the Ceded Lands Trust and its resources

and revenues in order to establish and maintain native settlements and distinct native communities throughout the State.

(10) The Hawaiian Home Lands and the Ceded Lands provide an important foundation for the ability of the Native Hawaiian community to maintain the practice of Native Hawaiian

culture, language, and traditions, and for the survival of the

Native Hawaiian people.

(11) Native Hawaiians have maintained other distinctly

native areas in Hawaii.

(12) On November 23, 1993, Public Law 103–150 (107 Stat.

1510) (commonly known as the Apology Resolution) was enacted

into law, extending an apology on behalf of the United States

to the Native people of Hawaii for the United States role in the

overthrow of the Kingdom of Hawaii.

(13) The Apology Resolution acknowledges that the overthrow of the Kingdom of Hawaii occurred with the active participation of agents and citizens of the United States and further acknowledges that the Native Hawaiian people never directly relinquished their claims to their inherent sovereignty as

a people over their national lands to the United States, either

through their monarchy or through a plebiscite or referendum.

(14) The Apology Resolution expresses the commitment of

Congress and the President to acknowledge the ramifications of

the overthrow of the Kingdom of Hawaii and to support reconciliation efforts between the United States and Native Hawaiians; and to have Congress and the President, through the

President’s designated officials, consult with Native Hawaiians

on the reconciliation process as called for under the Apology

Resolution.

(15) Despite the overthrow of the Hawaiian government,

Native Hawaiians have continued to maintain their separate

identity as a distinct native community through the formation

of cultural, social, and political institutions, and to give expression to their rights as native people to self-determination and

self-governance as evidenced through their participation in the

Office of Hawaiian Affairs.

(16) Native Hawaiians also maintain a distinct Native Hawaiian community through the provision of governmental services to Native Hawaiians, including the provision of health care

services, educational programs, employment and training programs, children’s services, conservation programs, fish and

wildlife protection, agricultural programs, native language immersion programs and native language immersion schools from

kindergarten through high school, as well as college and master’s degree programs in native language immersion instruction,

and traditional justice programs, and by continuing their efforts to enhance Native Hawaiian self-determination and local

control.

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(17) Native Hawaiians are actively engaged in Native Hawaiian cultural practices, traditional agricultural methods,

fishing and subsistence practices, maintenance of cultural use

areas and sacred sites, protection of burial sites, and the exercise of their traditional rights to gather medicinal plants and

herbs, and food sources.

(18) The Native Hawaiian people wish to preserve, develop,

and transmit to future Native Hawaiian generations their ancestral lands and Native Hawaiian political and cultural identity in accordance with their traditions, beliefs, customs and

practices, language, and social and political institutions, and to

achieve greater self-determination over their own affairs.

(19) This Act provides for a process within the framework

of Federal law for the Native Hawaiian people to exercise their

inherent rights as a distinct aboriginal, indigenous, native community to reorganize a Native Hawaiian government for the

purpose of giving expression to their rights as native people to

self-determination and self-governance.

(20) The United States has declared that—

(A) the United States has a special responsibility for

the welfare of the native peoples of the United States, including Native Hawaiians;

(B) Congress has identified Native Hawaiians as a distinct indigenous group within the scope of its Indian affairs

power, and has enacted dozens of statutes on their behalf

pursuant to its recognized trust responsibility; and

(C) Congress has also delegated broad authority to administer a portion of the Federal trust responsibility to the

State of Hawaii.

(21) The United States has recognized and reaffirmed the

special trust relationship with the Native Hawaiian people

through—

(A) the enactment of the Act entitled ‘‘An Act to provide

for the admission of the State of Hawaii into the Union’’,

approved March 18, 1959 (Public Law 86–3; 73 Stat. 4)

by—

(i) ceding to the State of Hawaii title to the public

lands formerly held by the United States, and mandating that those lands be held in public trust for five

purposes, one of which is for the betterment of the conditions of Native Hawaiians; and

(ii) transferring the United States responsibility for

the administration of the Hawaiian Home Lands to the

State of Hawaii, but retaining the authority to enforce

the trust, including the exclusive right of the United

States to consent to any actions affecting the lands

which comprise the corpus of the trust and any amendments to the Hawaiian Homes Commission Act, 1920

(42 Stat. 108, chapter 42) that are enacted by the legislature of the State of Hawaii affecting the beneficiaries

under the Act.

(22) The United States continually has recognized and reaffirmed that—

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(A) Native Hawaiians have a cultural, historic, and

land-based link to the aboriginal, native people who exercised sovereignty over the Hawaiian Islands;

(B) Native Hawaiians have never relinquished their

claims to sovereignty or their sovereign lands;

(C) the United States extends services to Native Hawaiians because of their unique status as the aboriginal, native

people of a once sovereign nation with whom the United

States has a political and legal relationship; and

(D) the special trust relationship of American Indians,

Alaska Natives, and Native Hawaiians to the United States

arises out of their status as aboriginal, indigenous, native

people of the United States.

SEC. 2. DEFINITIONS.

In this Act:

(1) ABORIGINAL, INDIGENOUS, NATIVE PEOPLE.—The term

‘‘aboriginal, indigenous, native people’’ means those people

whom Congress has recognized as the original inhabitants of

the lands and who exercised sovereignty prior to European contact in the areas that later became part of the United States.

(2) ADULT MEMBERS.—The term ‘‘adult members’’ means

those Native Hawaiians who have attained the age of 18 at the

time the Secretary publishes the final roll, as provided in section 7(a)(3) of this Act.

(3) APOLOGY RESOLUTION.—The term ‘‘Apology Resolution’’

means Public Law 103–150 (107 Stat. 1510), a joint resolution

offering an apology to Native Hawaiians on behalf of the

United States for the participation of agents of the United

States in the January 17, 1893 overthrow of the Kingdom of

Hawaii.

(4) CEDED LANDS.—The term ‘‘ceded lands’’ means those

lands which were ceded to the United States by the Republic of

Hawaii under the Joint Resolution to provide for annexing the

Hawaiian Islands to the United States of July 7, 1898 (30 Stat.

750), and which were later transferred to the State of Hawaii

in the Act entitled ‘‘An Act to provide for the admission of the

State of Hawaii into the Union’’ approved March 18, 1959 (Public Law 86–3; 73 Stat. 4).

(5) COMMISSION.—The term ‘‘Commission’’ means the commission established in section 7 of this Act to certify that the

adult members of the Native Hawaiian community contained

on the roll developed under that section meet the definition of

Native Hawaiian, as defined in paragraph (7)(A).

(6) INDIGENOUS, NATIVE PEOPLE.—The term ‘‘indigenous,

native people’’ means the lineal descendants of the aboriginal,

indigenous, native people of the United States.

(7) NATIVE HAWAIIAN.—

(A) Prior to the recognition by the United States of a

Native Hawaiian government under the authority of section

7(d)(2) of this Act, the term ‘‘Native Hawaiian’’ means the

indigenous, native people of Hawaii who are the lineal descendants of the aboriginal, indigenous, native people who

resided in the islands that now comprise the State of Hawaii on or before January 1, 1893, and who occupied and

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exercised sovereignty in the Hawaiian archipelago, including the area that now constitutes the State of Hawaii, and

includes all Native Hawaiians who were eligible in 1921

for the programs authorized by the Hawaiian Homes Commission Act (42 Stat. 108, chapter 42) and their lineal descendants.

(B) Following the recognition by the United States of

the Native Hawaiian government under section 7(d)(2) of

this Act, the term ‘‘Native Hawaiian’’ shall have the meaning given to such term in the organic governing documents

of the Native Hawaiian government.

(8) NATIVE HAWAIIAN GOVERNMENT.—The term ‘‘Native Hawaiian government’’ means the citizens of the government of the

Native Hawaiian people that is recognized by the United States

under the authority of section 7(d)(2) of this Act.

(9) NATIVE HAWAIIAN INTERIM GOVERNING COUNCIL.—The

term ‘‘Native Hawaiian Interim Governing Council’’ means the

interim governing council that is organized under section 7(c)

of this Act.

(10) ROLL.—The term ‘‘roll’’ means the roll that is developed under the authority of section 7(a) of this Act.

(11) SECRETARY.—The term ‘‘Secretary’’ means the Secretary of the Interior.

(12) TASK FORCE.—The term ‘‘Task Force’’ means the Native Hawaiian Interagency Task Force established under the

authority of section 6 of this Act.

SEC. 3. UNITED STATES POLICY AND PURPOSE.

(a) POLICY.—The United States reaffirms that—

(1) Native Hawaiians are a unique and distinct aboriginal,

indigenous, native people, with whom the United States has a

political and legal relationship;

(2) the United States has a special trust relationship to promote the welfare of Native Hawaiians;

(3) Congress possesses the authority under the Constitution

to enact legislation to address the conditions of Native Hawaiians and has exercised this authority through the enactment

of—

(A) the Hawaiian Homes Commission Act, 1920 (42

Stat. 108, chapter 42);

(B) the Act entitled ‘‘An Act to provide for the admission of the State of Hawaii into the Union’’, approved

March 18, 1959 (Public Law 86–3; 73 Stat. 4); and

(C) more than 150 other Federal laws addressing the

conditions of Native Hawaiians;

(4) Native Hawaiians have—

(A) an inherent right to autonomy in their internal affairs;

(B) an inherent right of self-determination and self-governance;

(C) the right to reorganize a Native Hawaiian government; and

(D) the right to become economically self-sufficient; and

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(5) the United States shall continue to engage in a process

of reconciliation and political relations with the Native Hawaiian people.

(b) PURPOSE.—It is the intent of Congress that the purpose of

this Act is to provide a process for the reorganization of a Native

Hawaiian government and for the recognition by the United States

of the Native Hawaiian government for purposes of continuing a

government-to-government relationship.

SEC. 4. ESTABLISHMENT OF THE UNITED STATES OFFICE FOR NATIVE

HAWAIIAN AFFAIRS.

(a) IN GENERAL.—There is established within the Office of the

Secretary the United States Office for Native Hawaiian Affairs.

(b) DUTIES OF THE OFFICE.—The United States Office for Native Hawaiian Affairs shall—

(1) effectuate and coordinate the special trust relationship

between the Native Hawaiian people and the United States

through the Secretary, and with all other Federal agencies;

(2) upon the recognition of the Native Hawaiian government by the United States as provided for in section 7(d)(2) of

this Act, effectuate and coordinate the special trust relationship

between the Native Hawaiian government and the United

States through the Secretary, and with all other Federal agencies;

(3) fully integrate the principle and practice of meaningful,

regular, and appropriate consultation with the Native Hawaiian people by providing timely notice to, and consulting with

the Native Hawaiian people prior to taking any actions that

may affect traditional or current Native Hawaiian practices

and matters that may have the potential to significantly or

uniquely affect Native Hawaiian resources, rights, or lands,

and upon the recognition of the Native Hawaiian government

as provided for in section 7(d)(2) of this Act, fully integrate the

principle and practice of meaningful, regular, and appropriate

consultation with the Native Hawaiian government by providing timely notice to, and consulting with the Native Hawaiian people and the Native Hawaiian government prior to taking

any actions that may have the potential to significantly affect

Native Hawaiian resources, rights, or lands;

(4) consult with the Native Hawaiian Interagency Task

Force, other Federal agencies, and with relevant agencies of the

State of Hawaii on policies, practices, and proposed actions affecting Native Hawaiian resources, rights, or lands;

(5) be responsible for the preparation and submittal to the

Committee on Indian Affairs of the Senate, the Committee on

Energy and Natural Resources of the Senate, and the Committee on Resources of the House of Representatives of an annual report detailing the activities of the Interagency Task

Force established under section 6 of this Act that are undertaken with respect to the continuing process of reconciliation

and to effect meaningful consultation with the Native Hawaiian

people and the Native Hawaiian government and providing recommendations for any necessary changes to existing Federal

statutes or regulations promulgated under the authority of Federal law;

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(6) be responsible for continuing the process of reconciliation with the Native Hawaiian people, and upon the recognition of the Native Hawaiian government by the United States

as provided for in section 7(d)(2) of this Act, be responsible for

continuing the process of reconciliation with the Native Hawaiian government; and

(7) assist the Native Hawaiian people in facilitating a process for self-determination, including but not limited to the provision of technical assistance in the development of the roll

under section 7(a) of this Act, the organization of the Native

Hawaiian Interim Governing Council as provided for in section

7(c) of this Act, and the recognition of the Native Hawaiian government as provided for in section 7(d) of this Act.

(c) AUTHORITY.—The United States Office for Native Hawaiian

Affairs is authorized to enter into a contract with or make grants

for the purposes of the activities authorized or addressed in section

7 of this Act for a period of 3 years from the date of the enactment

of this Act.

SEC. 5. DESIGNATION OF DEPARTMENT OF JUSTICE REPRESENTATIVE.

The Attorney General shall designate an appropriate official

within the Department of Justice to assist the United States Office

for Native Hawaiian Affairs in the implementation and protection

of the rights of Native Hawaiians and their political, legal, and

trust relationship with the United States, and upon the recognition

of the Native Hawaiian government as provided for in section

7(d)(2) of this Act, in the implementation and protection of the

rights of the Native Hawaiian government and its political, legal,

and trust relationship with the United States.

SEC. 6. NATIVE HAWAIIAN INTERAGENCY TASK FORCE.

(a) ESTABLISHMENT.—There is established an interagency task

force to be known as the ‘‘Native Hawaiian Interagency Task Force’’.

(b) COMPOSITION.—The Task Force shall be composed of officials, to be designated by the President, from—

(1) each Federal agency that establishes or implements policies that affect Native Hawaiians or whose actions may significantly or uniquely impact on Native Hawaiian resources,

rights, or lands;

(2) the United States Office for Native Hawaiian Affairs established under section 4 of this Act; and

(3) the Executive Office of the President.

(c) LEAD AGENCIES.—The Department of the Interior and the

Department of Justice shall serve as the lead agencies of the Task

Force, and meetings of the Task Force shall be convened at the request of either of the lead agencies.

(d) CO-CHAIRS.—The Task Force representative of the United

States Office for Native Hawaiian Affairs established under the authority of section 4 of this Act and the Attorney General’s designee

under the authority of section 5 of this Act shall serve as co-chairs

of the Task Force.

(e) DUTIES.—The responsibilities of the Task Force shall be—

(1) the coordination of Federal policies that affect Native

Hawaiians or actions by any agency or agencies of the Federal

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Government which may significantly or uniquely impact on Native Hawaiian resources, rights, or lands;

(2) to assure that each Federal agency develops a policy on

consultation with the Native Hawaiian people, and upon recognition of the Native Hawaiian government by the United

States as provided in section 7(d)(2) of this Act, consultation

with the Native Hawaiian government; and

(3) to assure the participation of each Federal agency in the

development of the report to Congress authorized in section

4(b)(5) of this Act.

SEC. 7. PROCESS FOR THE DEVELOPMENT OF A ROLL FOR THE ORGANIZATION OF A NATIVE HAWAIIAN INTERIM GOVERNING

COUNCIL, FOR THE ORGANIZATION OF A NATIVE HAWAIIAN INTERIM GOVERNING COUNCIL AND A NATIVE HAWAIIAN GOVERNMENT, AND FOR THE RECOGNITION OF THE

NATIVE HAWAIIAN GOVERNMENT.

(a) ROLL.— (1) PREPARATION OF ROLL.—The United States Office for

Native Hawaiian Affairs shall assist the adult members of the

Native Hawaiian community who wish to participate in the reorganization of a Native Hawaiian government in preparing a

roll for the purpose of the organization of a Native Hawaiian

Interim Governing Council. The roll shall include the names of

the—

(A) adult members of the Native Hawaiian community

who wish to become citizens of a Native Hawaiian government and who are—

(i) the lineal descendants of the aboriginal, indigenous, native people who resided in the islands that

now comprise the State of Hawaii on or before January

1, 1893, and who occupied and exercised sovereignty in

the Hawaiian archipelago; or

(ii) Native Hawaiians who were eligible in 1921

for the programs authorized by the Hawaiian Homes

Commission Act (42 Stat. 108, chapter 42) or their lineal descendants; and

(B) the children of the adult members listed on the roll

prepared under this subsection.

(2) CERTIFICATION AND SUBMISSION.— (A) COMMISSION.— (i) IN GENERAL.—There is authorized to be established a Commission to be composed of nine members

for the purpose of certifying that the adult members of

the Native Hawaiian community on the roll meet the

definition of Native Hawaiian, as defined in section

2(7)(A) of this Act.

(ii) MEMBERSHIP.—

(I) APPOINTMENT.—The Secretary shall appoint the members of the Commission in accordance with subclause (II). Any vacancy on the Commission shall not affect its powers and shall be

filled in the same manner as the original appointment.

(II) REQUIREMENTS.—The members of the

Commission shall be Native Hawaiian, as defined

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in section 2(7)(A) of this Act, and shall have expertise in the certification of Native Hawaiian ancestry.

(III) CONGRESSIONAL SUBMISSION OF SUGGESTED CANDIDATES.—In appointing members of

the Commission, the Secretary may choose such

members from among—

(aa) five suggested candidates submitted

by the Majority Leader of the Senate and the

Minority Leader of the Senate from a list of

candidates provided to such leaders by the

Chairman and Vice Chairman of the Committee on Indian Affairs of the Senate; and

(bb) four suggested candidates submitted

by the Speaker of the House of Representatives

and the Minority Leader of the House of Representatives from a list provided to the Speaker and the Minority Leader by the Chairman

and Ranking member of the Committee on Resources of the House of Representatives.

(iii) EXPENSES.—Each member of the Commission

shall be allowed travel expenses, including per diem in

lieu of subsistence, at rates authorized for employees of

agencies under subchapter I of chapter 57 of title 5,

United States Code, while away from their homes or

regular places of business in the performance of services for the Commission.

(B) CERTIFICATION.—The Commission shall certify that

the individuals listed on the roll developed under the authority of this subsection are Native Hawaiians, as defined

in section 2(7)(A) of this Act.

(3) SECRETARY.—

(A) CERTIFICATION.—The Secretary shall review the

Commission’s certification of the membership roll and determine whether it is consistent with applicable Federal

law, including the special trust relationship between the

United States and the indigenous, native people of the

United States.

(B) PUBLICATION.—Upon making the determination authorized in subparagraph (A), the Secretary shall publish a

final roll.

(C) APPEAL.—

(i) ESTABLISHMENT OF MECHANISM.—The Secretary

is authorized to establish a mechanism for an appeal

of the Commission’s determination as it concerns—

(I) the exclusion of the name of a person who

meets the definition of Native Hawaiian, as defined in section 2(7)(A) of this Act, from the roll;

or

(II) a challenge to the inclusion of the name of

a person on the roll on the grounds that the person

does not meet the definition of Native Hawaiian,

as so defined.

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(ii) PUBLICATION; UPDATE.—The Secretary shall

publish the final roll while appeals are pending, and

shall update the final roll and the publication of the

final roll upon the final disposition of any appeal.

(D) FAILURE TO ACT.—If the Secretary fails to make the

certification authorized in subparagraph (A) within 90

days of the date that the Commission submits the membership roll to the Secretary, the certification shall be deemed

to have been made, and the Commission shall publish the

final roll.

(4) EFFECT OF PUBLICATION.—The publication of the final

roll shall serve as the basis for the eligibility of adult members

listed on the roll to participate in all referenda and elections associated with the organization of a Native Hawaiian Interim

Governing Council and the Native Hawaiian government.

(b) RECOGNITION OF RIGHTS.—The right of the Native Hawaiian people to organize for their common welfare and to adopt appropriate organic governing documents is hereby recognized by the

United States.

(c) ORGANIZATION OF THE NATIVE HAWAIIAN INTERIM GOV- ERNING COUNCIL.— (1) ORGANIZATION.—The adult members listed on the roll

developed under the authority of subsection (a) are authorized

to—

(A) develop criteria for candidates to be elected to serve

on the Native Hawaiian Interim Governing Council;

(B) determine the structure of the Native Hawaiian Interim Governing Council; and

(C) elect members to the Native Hawaiian Interim Governing Council.

(2) ELECTION.—Upon the request of the adult members listed on the roll developed under the authority of subsection (a),

the United States Office for Native Hawaiian Affairs may assist

the Native Hawaiian community in holding an election by secret ballot (absentee and mail balloting permitted), to elect the

membership of the Native Hawaiian Interim Governing Council.

(3) POWERS.—

(A) IN GENERAL.—The Native Hawaiian Interim Governing Council is authorized to represent those on the roll

in the implementation of this Act and shall have no powers

other than those given to it in accordance with this Act.

(B) FUNDING.—The Native Hawaiian Interim Governing Council is authorized to enter into a contract or

grant with any Federal agency, including but not limited

to, the United States Office for Native Hawaiian Affairs

within the Department of the Interior and the Administration for Native Americans within the Department of Health

and Human Services, to carry out the activities set forth in

subparagraph (C).

(C) ACTIVITIES.—

(i) IN GENERAL.—The Native Hawaiian Interim

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oped under the authority of subsection (a) for the purpose of determining (but not limited to) the following:

(I) The proposed elements of the organic governing documents of a Native Hawaiian government.

(II) The proposed powers and authorities to be

exercised by a Native Hawaiian government, as

well as the proposed privileges and immunities of

a Native Hawaiian government.

(III) The proposed civil rights and protection

of such rights of the citizens of a Native Hawaiian

government and all persons subject to the authority of a Native Hawaiian government.

(ii) DEVELOPMENT OF ORGANIC GOVERNING DOCU- MENTS.—Based upon the referendum, the Native Hawaiian Interim Governing Council is authorized to develop proposed organic governing documents for a Native Hawaiian government.

(iii) DISTRIBUTION.—The Native Hawaiian Interim

Governing Council is authorized to distribute to all

adult members of those listed on the roll, a copy of the

proposed organic governing documents, as drafted by

the Native Hawaiian Interim Governing Council, along

with a brief impartial description of the proposed organic governing documents.

(iv) CONSULTATION.—The Native Hawaiian Interim Governing Council is authorized to freely consult

with those members listed on the roll concerning the

text and description of the proposed organic governing

documents.

(D) ELECTIONS.— (i) IN GENERAL.—The Native Hawaiian Interim

Governing Council is authorized to hold elections for

the purpose of ratifying the proposed organic governing

documents, and upon ratification of the organic governing documents, to hold elections for the officers of

the Native Hawaiian government.

(ii) ASSISTANCE.—Upon the request of the Native

Hawaiian Interim Governing Council, the United

States Office of Native Hawaiian Affairs may assist the

Council in conducting such elections.

(4) TERMINATION.—The Native Hawaiian Interim Governing Council shall have no power or authority under this Act

after the time at which the duly elected officers of the Native

Hawaiian government take office.

(d) RECOGNITION OF THE NATIVE HAWAIIAN GOVERNMENT.—

(1) PROCESS FOR RECOGNITION.—

(A) SUBMITTAL OF ORGANIC GOVERNING DOCUMENTS.—

The duly elected officers of the Native Hawaiian government shall submit the organic governing documents of the

Native Hawaiian government to the Secretary.

(B) CERTIFICATIONS.—Within 90 days of the date that

the duly elected officers of the Native Hawaiian government

submit the organic governing documents to the Secretary,

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the Secretary shall certify that the organic governing

documents—

(i) were adopted by a majority vote of the adult

members listed on the roll prepared under the authority of subsection (a);

(ii) are consistent with applicable Federal law and

the special trust relationship between the United States

and the indigenous native people of the United States;

(iii) provide for the exercise of those governmental

authorities that are recognized by the United States as

the powers and authorities that are exercised by other

governments representing the indigenous, native people

of the United States;

(iv) provide for the protection of the civil rights of

the citizens of the Native Hawaiian government and all

persons subject to the authority of the Native Hawaiian

government, and to assure that the Native Hawaiian

government exercises its authority consistent with the

requirements of section 202 of the Act of April 11, 1968

(25 U.S.C. 1302);

(v) prevent the sale, disposition, lease, or encumbrance of lands, interests in lands, or other assets of

the Native Hawaiian government without the consent

of the Native Hawaiian government;

(vi) establish the criteria for citizenship in the Native Hawaiian government; and

(vii) provide authority for the Native Hawaiian

government to negotiate with Federal, State, and local

governments, and other entities.

(C) FAILURE TO ACT.—If the Secretary fails to act within 90 days of the date that the duly elected officers of the

Native Hawaiian government submitted the organic governing documents of the Native Hawaiian government to

the Secretary, the certifications authorized in subparagraph

(B) shall be deemed to have been made.

(D) RESUBMISSION IN CASE OF NONCOMPLIANCE WITH

FEDERAL LAW.—

(i) RESUBMISSION BY THE SECRETARY.—If the Secretary determines that the organic governing documents, or any part thereof, are not consistent with applicable Federal law, the Secretary shall resubmit the

organic governing documents to the duly elected officers of the Native Hawaiian government along with a

justification for each of the Secretary’s findings as to

why the provisions are not consistent with such law.

(ii) AMENDMENT AND RESUBMISSION BY THE NATIVE HAWAIIAN GOVERNMENT.—If the organic governing

documents are resubmitted to the duly elected officers

of the Native Hawaiian government by the Secretary

under clause (i), the duly elected officers of the Native

Hawaiian government shall—

(I) amend the organic governing documents to

ensure that the documents comply with applicable

Federal law; and

635

(II) resubmit the amended organic governing

documents to the Secretary for certification in accordance with subparagraphs (B) and (C).

(2) FEDERAL RECOGNITION.— (A) RECOGNITION.—Notwithstanding any other provision of law, upon the election of the officers of the Native

Hawaiian government and the certifications (or deemed certifications) by the Secretary authorized in paragraph (1),

Federal recognition is hereby extended to the Native Hawaiian government as the representative governing body of the

Native Hawaiian people.

(B) NO DIMINISHMENT OF RIGHTS OR PRIVILEGES.— Nothing contained in this Act shall diminish, alter, or

amend any existing rights or privileges enjoyed by the Native Hawaiian people which are not inconsistent with the

provisions of this Act.

SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

There is authorized to be appropriated such sums as may be

necessary to carry out the activities authorized in this Act.

SEC. 9. REAFFIRMATION OF DELEGATION OF FEDERAL AUTHORITY;

NEGOTIATIONS.

(a) REAFFIRMATION.—The delegation by the United States of authority to the State of Hawaii to address the conditions of Native

Hawaiians contained in the Act entitled ‘‘An Act to provide for the

admission of the State of Hawaii into the Union’’ approved March

18, 1959 (Public Law 86–3; 73 Stat. 5) is hereby reaffirmed.

(b) NEGOTIATIONS.—Upon the Federal recognition of the Native

Hawaiian government pursuant to section 7(d)(2) of this Act, the

United States is authorized to negotiate and enter into an agreement with the State of Hawaii and the Native Hawaiian government regarding the transfer of lands, resources, and assets dedicated to Native Hawaiian use under existing law as in effect on the

date of the enactment of this Act to the Native Hawaiian government.

SEC. 10. DISCLAIMER.

Nothing in this Act is intended to serve as a settlement of any

claims against the United States, or to affect the rights of the Native

Hawaiian people under international law.

SEC. 11. REGULATIONS.

The Secretary is authorized to make such rules and regulations

and such delegations of authority as the Secretary deems necessary

to carry out the provisions of this Act.

SEC. 12. SEVERABILITY.

In the event that any section or provision of this Act, or any

amendment made by this Act is held invalid, it is the intent of Congress that the remaining sections or provisions of this Act, and the

amendments made by this Act, shall continue in full force and effect.

Section 124 includes a technical correction to allow the use of

National Park Service funds for the acquisition of lands near

Saddleback Mountain, Maine for inclusion in the Appalachian National Scenic Trail.

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Section 125 incorporates by reference the text of the bill S.

2273, the Black Rock Desert-High Rock Canyon Emigrant Trails

National Conservation Area Act of 2000, as passed by the United

States Senate on October 5, 2000. The text of S. 2273 is as follows:

AN ACT To establish the Black Rock Desert-High Rock Canyon Emigrant Trails

National Conservation Area, and for other purposes.

Be it enacted by the Senate and House of Representatives of the

United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘‘Black Rock Desert-High Rock

Canyon Emigrant Trails National Conservation Area Act of 2000’’.

SEC. 2. FINDINGS.

The Congress finds the following:

(1) The areas of northwestern Nevada known as the Black

Rock Desert and High Rock Canyon contain and surround the

last nationally significant, untouched segments of the historic

California emigrant Trails, including wagon ruts, historic inscriptions, and a wilderness landscape largely unchanged since

the days of the pioneers.

(2) The relative absence of development in the Black Rock

Desert and High Rock Canyon areas from emigrant times to the

present day offers a unique opportunity to capture the terrain,

sights, and conditions of the overland trails as they were experienced by the emigrants and to make available to both present

and future generations of Americans the opportunity of experiencing emigrant conditions in an unaltered setting.

(3) The Black Rock Desert and High Rock Canyon areas

are unique segments of the Northern Great Basin and contain

broad representation of the Great Basin’s land forms and plant

and animal species, including golden eagles and other birds of

prey, sage grouse, mule deer, pronghorn antelope, bighorn

sheep, free roaming horses and burros, threatened fish and sensitive plants.

(4) The Black Rock-High Rock region contains a number of

cultural and natural resources that have been declared eligible

for National Historic Landmark and Natural Landmark status,

including a portion of the 1843–44 John Charles Fremont exploration route, the site of the death of Peter Lassen, early military facilities, and examples of early homesteading and mining.

(5) The archeological, paleontological, and geographical resources of the Black Rock-High Rock region include numerous

prehistoric and historic Native American sites, wooly mammoth

sites, some of the largest natural potholes of North America,

and a remnant dry Pleistocene lakebed (playa) where the curvature of the Earth may be observed.

(6) The two large wilderness mosaics that frame the conservation area offer exceptional opportunities for solitude and

serve to protect the integrity of the viewshed of the historic emigrant trails.

(7) Public lands in the conservation area have been used for

domestic livestock grazing for over a century, with resultant

benefits to community stability and contributions to the local

and State economies. It has not been demonstrated that conVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00640 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.005 pfrm03 PsN: HR1033
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tinuation of this use would be incompatible with appropriate

protection and sound management of the resource values of

these lands; therefore, it is expected that such grazing will continue in accordance with the management plan for the conservation area and other applicable laws and regulations.

(8) The Black Rock Desert playa is a unique natural resource that serves as the primary destination for the majority

of visitors to the conservation area, including visitors associated

with large-scale permitted events. It is expected that such permitted events will continue to be administered in accordance

with the management plan for the conservation area and other

applicable laws and regulations.

SEC. 3. DEFINITIONS.

As used in this Act:

(1) The term ‘‘Secretary’’ means the Secretary of the Interior.

(2) The term ‘‘public lands’’ has the meaning stated in section 103(e) of the Federal Land Policy and Management Act of

1976 (43 U.S.C. 1702(e)).

(3) The term ‘‘conservation area’’ means the Black Rock

Desert-High Rock Canyon Emigrant Trails National Conservation Area established pursuant to section 4 of this Act.

SEC. 4. ESTABLISHMENT OF THE CONSERVATION AREA.

(a) ESTABLISHMENT AND PURPOSES.—In order to conserve, protect, and enhance for the benefit and enjoyment of present and future generations the unique and nationally important historical,

cultural, paleontological, scenic, scientific, biological, educational,

wildlife, riparian, wilderness, endangered species, and recreational

values and resources associated with the Applegate-Lassen and Nobles Trails corridors and surrounding areas, there is hereby established the Black Rock Desert-High Rock Canyon Emigrant Trails

National Conservation Area in the State of Nevada.

(b) AREAS INCLUDED.—The conservation area shall consist of

approximately 797,100 acres of public lands as generally depicted

on the map entitled ‘‘Black Rock Desert Emigrant Trail National

Conservation Area’’ and dated July 19, 2000.

(c) MAPS AND LEGAL DESCRIPTION.—As soon as practicable

after the date of the enactment of this Act, the Secretary shall submit to Congress a map and legal description of the conservation

area. The map and legal description shall have the same force and

effect as if included in this Act, except the Secretary may correct

clerical and typographical errors in such map and legal description.

Copies of the map and legal description shall be on file and available for public inspection in the appropriate offices of the Bureau

of Land Management.

SEC. 5. MANAGEMENT.

(a) MANAGEMENT.—The Secretary, acting through the Bureau of

Land Management, shall manage the conservation area in a manner that conserves, protects and enhances its resources and values,

including those resources and values specified in subsection 4(a), in

accordance with this Act, the Federal Land Policy and Management

Act of 1976 (43 U.S.C. 1701 et seq.), and other applicable provisions

of law.

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(b) ACCESS.— (1) IN GENERAL.—The Secretary shall maintain adequate

access for the reasonable use and enjoyment of the conservation

area.

(2) PRIVATE LAND.—The Secretary shall provide reasonable

access to privately owned land or interests in land within the

boundaries of the conservation area.

(3) EXISTING PUBLIC ROADS.—The Secretary is authorized

to maintain existing public access within the boundaries of the

conservation area in a manner consistent with the purposes for

which the conservation area was established.

(c) USES.— (1) IN GENERAL.—The Secretary shall only allow such uses

of the conservation area as the Secretary finds will further the

purposes for which the conservation area is established.

(2) OFF-HIGHWAY VEHICLE USE.—Except where needed for

administrative purposes or to respond to an emergency, use of

motorized vehicles in the conservation area shall be permitted

only on roads and trails and in other areas designated for use

of motorized vehicles as part of the management plan prepared

pursuant to subsection (e).

(3) PERMITTED EVENTS.—The Secretary may continue to

permit large-scale events in defined, low impact areas of the

Black Rock Desert playa in the conservation area in accordance

with the management plan prepared pursuant to subsection (e).

(d) HUNTING, TRAPPING, AND FISHING.—Nothing in this Act

shall be deemed to diminish the jurisdiction of the State of Nevada

with respect to fish and wildlife management, including regulation

of hunting and fishing, on public lands within the conservation

area.

(e) MANAGEMENT PLAN.—Within three years following the date

of enactment of this Act, the Secretary shall develop a comprehensive resource management plan for the long-term protection and

management of the conservation area. The plan shall be developed

with full public participation and shall describe the appropriate

uses and management of the conservation area consistent with the

provisions of this Act. The plan may incorporate appropriate decisions contained in any current management or activity plan for the

area and may use information developed in previous studies of the

lands within or adjacent to the conservation area.

(f) GRAZING.—Where the Secretary of the Interior currently permits livestock grazing in the conservation area, such grazing shall

be allowed to continue subject to all applicable laws, regulations,

and executive orders.

(g) VISITOR SERVICE FACILITIES.—The Secretary is authorized

to establish, in cooperation with other public or private entities as

the Secretary may deem appropriate, visitor service facilities for the

purpose of providing information about the historical, cultural, ecological, recreational, and other resources of the conservation area.

SEC. 6. WITHDRAWAL.

(a) IN GENERAL.—Subject to valid existing rights, all Federal

lands within the conservation area and all lands and interests

therein which are hereafter acquired by the United States are hereby withdrawn from all forms of entry, appropriation, or disposal

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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’’

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and dated July 19, 2000, and which shall be known as the

High Rock Canyon Wilderness.

(8) Certain lands in the Calico Mountains Wilderness

Study Area comprised of approximately 65,400 acres, as generally depicted on a map entitled ‘‘Calico Mountains Wilderness—Proposed’’ and dated July 19, 2000, and which shall be

known as the Calico Mountains Wilderness.

(9) Certain lands in the South Jackson Mountains Wilderness Study Area comprised of approximately 56,800 acres, as

generally depicted on a map entitled ‘‘South Jackson Mountains

Wilderness—Proposed’’ and dated July 19, 2000, and which

shall be known as the South Jackson Mountains Wilderness.

(10) Certain lands in the North Jackson Mountains Wilderness Study Area comprised of approximately 24,000 acres, as

generally depicted on a map entitled ‘‘North Jackson Mountains

Wilderness—Proposed’’ and dated July 19, 2000, and which

shall be known as the North Jackson Mountains Wilderness.

(b) ADMINISTRATION OF WILDERNESS AREAS.—Subject to valid

existing rights, each wilderness area designated by this Act shall be

administered by the Secretary in accordance with the provisions of

the Wilderness Act, except that any reference in such provisions to

the effective date of the Wilderness Act shall be deemed to be a reference to the date of enactment of this Act and any reference to the

Secretary of Agriculture shall be deemed to be a reference to the Secretary of the Interior.

(c) MAPS AND LEGAL DESCRIPTION.—As soon as practicable

after the date of the enactment of this Act, the Secretary shall submit to Congress a map and legal description of the wilderness areas

designated under this Act. The map and legal description shall

have the same force and effect as if included in this Act, except the

Secretary may correct clerical and typographical errors in such map

and legal description. Copies of the map and legal description shall

be on file and available for public inspection in the appropriate offices of the Bureau of Land Management.

(d) GRAZING.—Within the wilderness areas designated under

subsection (a), the grazing of livestock, where established prior to

the date of enactment of this Act, shall be permitted to continue subject to such reasonable regulations, policies, and practices as the

Secretary deems necessary, as long as such regulations, policies,

and practices fully conform with and implement the intent of Congress regarding grazing in such areas as such intent is expressed in

the Wilderness Act and section 101(f) of Public Law 101–628.

SEC. 9. AUTHORIZATION OF APPROPRIATIONS.

There is hereby authorized to be appropriated such sums as

may be necessary to carry out the provisions of this Act.

Section 126 increases the annual authorized funding level for

the Illinois and Michigan Canal National Heritage Corridor Commission from $250,000 to $1,000,000.

Section 127. The bill S. 2885, the Jamestown 400th Commemoration Commission Act of 2000, as passed in the United States Senate on October 5, 2000, is incorporated by reference. The text of S.

2885 is as follows:

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AN ACT TO establish the Jamestown 400th Commemoration Commission, and for

other purposes

Be it enacted by the Senate and House of Representatives of the

United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘‘Jamestown 400th Commemoration Commission Act of 2000’’.

SEC. 2. FINDINGS AND PURPOSE.

(a) FINDINGS.—Congress finds that—

(1) the founding of the colony at Jamestown, Virginia in

1607, the first permanent English colony in the New World,

and the capital of Virginia for 92 years, has major significance

in the history of the United States;

(2) the settlement brought people from throughout the Atlantic Basin together to form a multicultural society, including

English, other Europeans, Native Americans, and Africans;

(3) the economic, political, religious, and social institutions

that developed during the first 9 decades of the existence of

Jamestown continue to have profound effects on the United

States, particularly in English common law and language,

cross cultural relationships, and economic structure and status;

(4) the National Park Service, the Association for the Preservation of Virginia Antiquities, and the Jamestown-Yorktown

Foundation of the Commonwealth of Virginia collectively own

and operate significant resources related to the early history of

Jamestown; and

(5) in 1996—

(A) the Commonwealth of Virginia designated the

Jamestown-Yorktown Foundation as the State agency responsible for planning and implementing the Commonwealth’s portion of the commemoration of the 400th anniversary of the founding of the Jamestown settlement;

(B) the Foundation created the Celebration 2007 Steering Committee, known as the Jamestown 2007 Steering

Committee; and

(C) planning for the commemoration began.

(b) PURPOSE.—The purpose of this Act is to establish the Jamestown 400th Commemoration Commission to—

(1) ensure a suitable national observance of the Jamestown

2007 anniversary by complementing the programs and activities

of the Commonwealth of Virginia;

(2) cooperate with and assist the programs and activities of

the State in observance of the Jamestown 2007 anniversary;

(3) assist in ensuring that Jamestown 2007 observances

provide an excellent visitor experience and beneficial interaction

between visitors and the natural and cultural resources of the

Jamestown sites;

(4) assist in ensuring that the Jamestown 2007 observances

are inclusive and appropriately recognize the experiences of all

people present in 17th century Jamestown;

(5) provide assistance to the development of Jamestown-related programs and activities;

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(6) facilitate international involvement in the Jamestown

2007 observances;

(7) support and facilitate marketing efforts for a commemorative coin, stamp, and related activities for the Jamestown

2007 observances; and

(8) assist in the appropriate development of heritage tourism and economic benefits to the United States.

SEC. 3. DEFINITIONS.

In this Act:

(1) COMMEMORATION.—The term ‘‘commemoration’’ means

the commemoration of the 400th anniversary of the founding of

the Jamestown settlement.

(2) COMMISSION.—The term ‘‘Commission’’ means the

Jamestown 400th Commemoration Commission established by

section 4(a).

(3) GOVERNOR.—The term ‘‘Governor’’ means the Governor

of Virginia.

(4) SECRETARY.—The term ‘‘Secretary’’ means the Secretary

of the Interior.

(5) STATE.—The term ‘‘State’’ means the Commonwealth of

Virginia, including agencies and entities of the Commonwealth.

SEC. 4. JAMESTOWN 400TH COMMEMORATION COMMISSION.

(a) IN GENERAL.—There is established a commission to be

known as the ‘‘Jamestown 400th Commemoration Commission’’.

(b) MEMBERSHIP.—

(1) IN GENERAL.—The Commission shall be composed of 15

members, of whom—

(A) 4 members shall be appointed by the Secretary, taking into consideration the recommendations of the Chairperson of the Jamestown 2007 Steering Committee;

(B) 4 members shall be appointed by the Secretary, taking into consideration the recommendations of the Governor;

(C) 2 members shall be employees of the National Park

Service, of which—

(i) 1 shall be the Director of the National Park

Service (or a designee); and

(ii) 1 shall be an employee of the National Park

Service having experience relevant to the commemoration, to be appointed by the Secretary; and

(D) 5 members shall be individuals that have an interest in, support for, and expertise appropriate to, the commemoration, to be appointed by the Secretary.

(2) TERM; VACANCIES.—

(A) TERM.—A member of the Commission shall be appointed for the life of the Commission.

(B) VACANCIES.—

(i) IN GENERAL.—A vacancy on the Commission

shall be filled in the same manner in which the original appointment was made.

(ii) PARTIAL TERM.—A member appointed to fill a

vacancy on the Commission shall serve for the remainVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00646 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.005 pfrm03 PsN: HR1033
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der 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

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(iii) the findings and recommendations of the Commission.

(d) POWERS OF THE COMMISSION.—The Commission may—

(1) accept donations and make dispersions of money, personal services, and real and personal property related to Jamestown and of the significance of Jamestown in the history of the

United States;

(2) appoint such advisory committees as the Commission

determines to be necessary to carry out this Act;

(3) authorize any member or employee of the Commission

to take any action that the Commission is authorized to take by

this Act;

(4) procure supplies, services, and property, and make or

enter into contracts, leases or other legal agreements, to carry

out this Act (except that any contracts, leases or other legal

agreements made or entered into by the Commission shall not

extend beyond the date of termination of the Commission);

(5) use the United States mails in the same manner and

under the same conditions as other Federal agencies;

(6) subject to approval by the Commission, make grants in amounts not to exceed $10,000 to communities and nonprofit organizations to develop programs to assist in the commemoration;

(7) make grants to research and scholarly organizations to

research, publish, or distribute information relating to the early

history of Jamestown; and

(8) provide technical assistance to States, localities, and

nonprofit organizations to further the commemoration.

(e) COMMISSION PERSONNEL MATTERS.— (1) COMPENSATION OF MEMBERS OF THE COMMISSION.— (A) IN GENERAL.—Except as provided in subparagraph

(B), a member of the Commission shall serve without compensation.

(B) FEDERAL EMPLOYEES.—A member of the Commission who is an officer or employee of the Federal Government shall serve without compensation in addition to the

compensation received for the services of the member as an

officer or employee of the Federal Government.

(C) TRAVEL EXPENSES.—A member of the Commission

shall be allowed travel expenses, including per diem in lieu

of subsistence, at rates authorized for an employee of an

agency under subchapter I of chapter 57 of title 5, United

States Code, while away from the home or regular place of

business of the member in the performance of the duties of

the Commission.

(2) STAFF.—

(A) IN GENERAL.—The Chairperson of the Commission

may, without regard to the civil service laws (including regulations), appoint and terminate an executive director and

such other additional personnel as are necessary to enable

the Commission to perform the duties of the Commission.

(B) CONFIRMATION OF EXECUTIVE DIRECTOR.—The employment of an executive director shall be subject to confirmation by the Commission.

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(3) COMPENSATION.— (A) IN GENERAL.—Except as provided in subparagraph

(B), the Chairperson of the Commission may fix the compensation of the executive director and other personnel

without regard to the provisions of chapter 51 and subchapter III of chapter 53 of title 5, United States Code, relating to classification of positions and General Schedule

pay rates.

(B) MAXIMUM RATE OF PAY.—The rate of pay for the executive director and other personnel shall not exceed the

rate payable for level V of the Executive Schedule under

section 5316 of title 5, United States Code.

(4) DETAIL OF GOVERNMENT EMPLOYEES.— (A) FEDERAL EMPLOYEES.— (i) IN GENERAL.—On the request of the Commission, the head of any Federal agency may detail, on a

reimbursable or non-reimbursable basis, any of the personnel of the agency to the Commission to assist the

Commission in carrying out the duties of the Commission under this Act.

(ii) CIVIL SERVICE STATUS.—The detail of an employee under clause (i) shall be without interruption or

loss of civil service status or privilege.

(B) STATE EMPLOYEES.—The Commission may—

(i) accept the services of personnel detailed from

States (including subdivisions of States); and

(ii) reimburse States for services of detailed personnel.

(5) VOLUNTEER AND UNCOMPENSATED SERVICES.—Notwithstanding section 1342 of title 31, United States Code, the Commission may accept and use voluntary and uncompensated

services as the Commission determines necessary.

(6) SUPPORT SERVICES.—The Director of the National Park

Service shall provide to the Commission, on a reimbursable

basis, such administrative support services as the Commission

may request.

(f) PROCUREMENT OF TEMPORARY AND INTERMITTENT SERV- ICES.—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.

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Section 128 provides guidance to the National Park Service on

restricting the use of snowmobiles in units of the National Park

System.

Section 129 extends an agreement, through March 31, 2001,

dealing with seven campsite leases in the Biscayne Bay, Miami/

Dade County area of Florida, collectively known as ‘‘Stiltsville’’.

Section 130 authorizes a grant of $1.3 million for the National

Park Service to acquire land in Lower Phalen Creek near St. Paul,

Minnesota for the Mississippi National River and Recreation Area.

The land is for a trail that is being named after the late Congressman Bruce Vento.

Section 131 authorizes the transfer of funds to the George

Washington’s Fredericksburg Foundation, Inc. for a cooperative

agreement to manage Ferry Farm, which was George Washington’s

boyhood home.

Section 132 prohibits the Secretary of the Interior from using

funds to pay the salaries or expenses related to the issuance of a

request for proposal related to a light rail system at Grand Canyon

National Park until June 1, 2001. In addition, the Secretary is directed to report directly to the Committee prior to any additional

action regarding a request for proposal on alternative transportation options for the park. These options should include a phasein period based on newly updated visitation numbers. The report

should also address using a bus/transit option only during high

peak visitation months. Alternatives to be analyzed and costed in

the report include: (1) an alternative fueled bus alternative with

parking outside the park; (2) a rapid transit alternative and (3) a

combination bus/rapid transit alternative.

Section 133 prohibits the Secretary of the Interior from removing a white cross erected in 1934 by the Veterans of Foreign Wars

to honor the memory of fallen World War I veterans. The cross is

located within the boundary of the Mojave National Preserve along

Cima Road, approximately 11 miles south of Interstate 15.

Section 134 extends the term of the Chesapeake and Ohio

Canal National Historical Park Commission.

Section 135 allows funds provided in Public Law 106–291 for

land acquisition by the National Park Service in fiscal year 2001

for Brandywine Battlefield, Ice Age National Scenic Trail, Mississippi National River and Recreation Area, Shenandoah National

Heritage Area, and Fallen Timbers Battlefield and Fort Miamis

National Historic Site to be used for a grant to a state, local government, or to a land management entity.

Section 137 extends the boundary of Gulf Islands National

Seashore in Mississippi to include Cat Island.

Section 138. The conference agreement includes a new provision regarding limitations on Federal Thrift Savings Plan contributions.

Section 139. The conference agreement includes a new provision regarding the exclusion of elements of the United States Secret Service from certain activities.

Section 140. The conference agreement includes a new provision providing for an average 3.7 percent salary adjustment for

Federal employees in January, 2001, consistent with the alterVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00650 Fmt 6601 Sfmt 6601 E:\HR\OC\HR1033.005 pfrm03 PsN: HR1033
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native pay plan submitted by the Administration on November 30,

2000.

Section 141. The conference agreement includes a new provision repealing mandatory retirement for the Alaska Railroad.

Section 142. The conference agreement includes a provision

amending the Juvenile Justice and Delinquency Prevention Act to

allow a two year exception for the State of Alaska with respect to

the holding of juveniles in adult facilities.

Section 143. The conference agreement contains the ‘‘LPTV

Pilot Project Digital Data Services Act’’.

Section 144. The conference agreement includes a provision to

amend the following: the Magnuson-Stevens Fishery Conservation

and Management Act; P.L. 106–246; P.L. 105–83; P.L. 99–5; P.L.

106–113 regarding a fishery research vessel; the implementation of

a fishing capacity reduction program for the Commercial King and

Tanner Crab Fisheries in the Bering Sea and Aleutian Islands; P.L.

89–702 to be referred to as the Fur Seal Act of 1966; the National

Marine Sanctuaries Act (16 U.S.C. 1433, 1434); and the Sustainable Fisheries Act (16 U.S.C. 1855 note).

Section 145. The conference agreement includes language

amending the Department of State Special Agents Retirment Act

of 1998 to allow agents who retired between January 1, 1997, and

the enactment of the Act on November 13, 1998, to also be eligible

for the increased benefits provided by the Act.

Section 146. The conference agreement includes a provision expressing the sense of Congress calling upon the President of the

United States to take action to provide relief from injury caused by

steel imports.

Section 147. The conference agreement includes a provision

amending the Johnson Act to prohibit gambling on peri-Hawaiian

cruises.

Section 148. The conference agreement includes language to

ban political advertising by public broadcasters.

Section 149. The conference agreement includes language extending a certain small business program, which would otherwise

expire.

Section 150. The conference agreement includes $105,000,000

in direct spending to the Department of Health and Human Services for the Ricky Ray Hemophilia Relief Fund, of which

$10,000,000 is for program management.

Section 151. The conference agreement includes $60,400,000 in

direct spending to the Department of Labor for costs related to administering the Energy Employees Occupational Illness Compensation Program enacted as Title XXXVI of the Defense Authorization

Act of 2000. This program was established to compensate individuals who have suffered disabling and potentially fatal illnesses as

a result of their work in the Department of Energy’s nuclear weapons complex. The Secretary of Labor is authorized to transfer these

funds to other federal agencies to the extent necessary to implement the Energy Employees Occupational Illness Compensation

Act.

Section 152. The conference agreement includes a provision to

make certain technical and conforming amendments to the Medicare/PPS law to allow the Moffit Cancer Research and Treatment

648

Center to be treated under existing law the same as the other ten

Medicare/PPS exempt institutions in the United States.

The conference agreement includes language which provides

that the Secretary of the Army may establish a pilot program to

provide environmental assistance to non-Federal interests in northern Wisconsin.

TITLE II—VIETNAM EDUCATION FOUNDATION ACT OF 2000

This title enacts a bill to establish a Vietnam Education Foundation, to provide fellowships for Vietnamese to study in the

United States at the graduate and post-graduate level in the

sciences, math, and medicine. It would also support American professors to teach these subjects in appropriate Vietnamese institutions. The bill authorizes an appropriation of $5,000,000 in fiscal

year 2001. Beginning in FY2002, the Secretary of the Treasury

would transfer $5,000,000 annually to the Foundation from debt repayments that Vietnam has agreed to make to the United States

in settlement of debt incurred prior to 1976 by the Republic of

South Vietnam. The Foundation can also solicit and accept private

funds.

TITLE III—COLORADO UTE SETTLEMENT ACT

AMENDMENTS OF 2000

The conference agreement includes the text of S. 2508, the Colorado Ute Settlement Act Amendments of 2000.

TITLE IV—DESIGNATION OF AMERICAN MUSEUM OF

SCIENCE AND ENERGY

The conference agreement includes language which will permit

the American Museum of Science and Energy located in Oak Ridge,

Tennessee, to accept and use donations, fees, and gifts to offset the

cost of operating the facility.

TITLE V—DELTA REGIONAL AUTHORITY ACT OF 2000

The conference agreement includes language which authorizes

the Delta Regional Authority.

TITLE VI—DAKOTA WATER RESOURCES ACT OF 2000

The conference agreement includes the text of S. 623, the Dakota Water Resources Act of 2000.

TITLE VII

The conference agreement includes an Act authorizing the construction of a Reconciliation Place in Fort Pierre, South Dakota.

TITLE VIII—ERIE CANALWAY NATIONAL

HERITAGE CORRIDOR

The conference agreement includes an Act to designate the

Erie Canalway a National Heritage Corridor.

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TITLE IX—LAW ENFORCEMENT PAY EQUITY ACT

The conference agreement includes a new provision regarding

pay comparability for the United States Park Police, the Uniformed

Division of the United States Secret Service, and the D.C. Metropolitan Police Department.

TITLE X—DEPARTMENT OF HOUSING AND URBAN

DEVELOPMENT

ADMINISTRATIVE PROVISIONS

Language is included which makes technical changes to the fiscal year 2000 Appropriations Act regarding the Millennial Housing

Commission.

Language is included which codifies the multiplier the Federal

Home Loan Mortgage Corporation can use for reaching the multifamily affordable housing goal.

Language is included to allow the conversion of a HUD rental

housing project in Toledo, Ohio to condominiums as long as the

housing remains affordable, either as rental or homeownership

housing, to low- and very-low income families that currently reside

in the apartments.

Language has been included which directs the General Accounting Office to study and report on financial standards related

to the Federal Home Loan Bank System.

TITLE XI—DEPARTMENT OF THE TREASURY

ADMINISTRATIVE PROVISION

Language is included which honors the Navajo Code Talkers of

World War II by authorizing the striking and presentation of a gold

medal of appropriate design to each of the original 29 Navajo Code

Talkers or a surviving family member, striking and presentation of

a silver medal to each man or surviving family member qualified

as a Navajo Code Talker, and by further authorizing the striking

of duplicate medals in bronze for sale to the general public.

TITLE XII—ENVIRONMENTAL PROTECTION AGENCY

ADMINISTRATIVE PROVISIONS

Language is included authorizing the aboveground storage

tank grant program.

TITLE XIII—NATIONAL AERONAUTICS AND SPACE

ADMINISTRATION

ADMINISTRATIVE PROVISION

Language is included which permits NASA to use certain proceeds from the sale of timber on lands associated with the John C.

Stennis Space Center for the purchase of additional property to establish education and visitor programs and facilities, and for wetlands mitigation.

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TITLE XIV—CERTAIN ALASKAN CRUISE SHIP OPERATIONS

Language is included which regulates the discharge of sewage

and wastewater from cruise ships in certain waters in and adjacent

to the State of Alaska.

TITLE XV—LIFE ACT AMENDMENTS

The conference agreement includes a new title, titled the LIFE

Act Amendments of 2000.

TITLE XVI—IMPROVING LITERACY THROUGH FAMILY

LITERACY PROJECTS

The conference agreement includes the Literacy Involves Families Together Act of 2000.

TITLE XVII—CHILDREN’S INTERNET PROTECTION

The conference agreement includes the Children’s Internet Protection Act of 2000.

COMMODITY FUTURES MODERNIZATION ACT OF 2000

The conference agreement would enact the provisions of H.R.

5660, as introduced on December 14, 2000. The text of that bill follows:

A BILL To reauthorize and amend the Commodity Exchange Act to promote legal

certainty, enhance competition, and reduce systemic risk in markets for futures

and over-the-counter derivatives, and for other purposes

Be it enacted by the Senate and House of Representatives of the

United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) SHORT TITLE.—This Act may be cited as the ‘‘Commodity

Futures Modernization Act of 2000’’.

(b) TABLE OF CONTENTS.—The table of contents of this Act is

as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Purposes.

TITLE I—COMMODITY FUTURES MODERNIZATION

Sec. 101. Definitions.

Sec. 102. Agreements, contracts, and transactions in foreign currency, government

securities, and certain other commodities.

Sec. 103. Legal certainty for excluded derivative transactions.

Sec. 104. Excluded electronic trading facilities.

Sec. 105. Hybrid instruments; swap transactions.

Sec. 106. Transactions in exempt commodities.

Sec. 107. Application of commodity futures laws.

Sec. 108. Protection of the public interest.

Sec. 109. Prohibited transactions.

Sec. 110. Designation of boards of trade as contract markets.

Sec. 111. Derivatives transaction execution facilities.

Sec. 112. Derivatives clearing.

Sec. 113. Common provisions applicable to registered entities.

Sec. 114. Exempt boards of trade.

Sec. 115. Suspension or revocation of designation as contract market.

Sec. 116. Authorization of appropriations.

Sec. 117. Preemption.

Sec. 118. Predispute resolution agreements for institutional customers.

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Sec. 119. Consideration of costs and benefits and antitrust laws.

Sec. 120. Contract enforcement between eligible counterparties.

Sec. 121. Special procedures to encourage and facilitate bona fide hedging by agricultural producers.

Sec. 122. Rule of construction.

Sec. 123. Technical and conforming amendments.

Sec. 124. Privacy.

Sec. 125. Report to Congress.

Sec. 126. International activities of the Commodity Futures Trading Commission.

TITLE II—COORDINATED REGULATION OF SECURITY FUTURES

PRODUCTS

SUBTITLE A—SECURITIES LAW AMENDMENTS

Sec. 201. Definitions under the Securities Exchange Act of 1934.

Sec. 202. Regulatory relief for markets trading security futures products.

Sec. 203. Regulatory relief for intermediaries trading security futures products.

Sec. 204. Special provisions for interagency cooperation.

Sec. 205. Maintenance of market integrity for security futures products.

Sec. 206. Special provisions for the trading of security futures products.

Sec. 207. Clearance and settlement.

Sec. 208. Amendments relating to registration and disclosure issues under the Securities Act of 1933 and the Securities Exchange Act of 1934.

Sec. 209. Amendments to the Investment Company Act of 1940 and the Investment

Advisers Act of 1940.

Sec. 210. Preemption of State laws.

SUBTITLE B—AMENDMENTS TO THE COMMODITY EXCHANGE ACT

Sec. 251. Jurisdiction of Securities and Exchange Commission; other provisions.

Sec. 252. Application of the Commodity Exchange Act to national securities exchanges and national securities associations that trade security futures.

Sec. 253. Notification of investigations and enforcement actions.

TITLE III—LEGAL CERTAINTY FOR SWAP AGREEMENTS

Sec. 301. Swap agreement.

Sec. 302. Amendments to the Securities Act of 1933.

Sec. 303. Amendments to the Securities Exchange Act of 1934.

Sec. 304. Savings provision.

TITLE IV—REGULATORY RESPONSIBILITY FOR BANK PRODUCTS

Sec. 401. Short title.

Sec. 402. Definitions.

Sec. 403. Exclusion of identified banking products commonly offered on or before

December 5, 2000.

Sec. 404. Exclusion of certain identified banking products offered by banks after December 5, 2000.

Sec. 405. Exclusion of certain other identified banking products.

Sec. 406. Administration of the predominance test.

Sec. 407. Exclusion of covered swap agreements.

Sec. 408. Contract enforcement.

SEC. 2. PURPOSES.

The purposes of this Act are—

(1) to reauthorize the appropriation for the Commodity Futures Trading Commission;

(2) to streamline and eliminate unnecessary regulation for

the commodity futures exchanges and other entities regulated

under the Commodity Exchange Act;

(3) to transform the role of the Commodity Futures Trading

Commission to oversight of the futures markets;

(4) to provide a statutory and regulatory framework for allowing the trading of futures on securities;

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(5) to clarify the jurisdiction of the Commodity Futures

Trading Commission over certain retail foreign exchange transactions and bucket shops that may not be otherwise regulated;

(6) to promote innovation for futures and derivatives and to

reduce systemic risk by enhancing legal certainty in the markets

for certain futures and derivatives transactions;

(7) to reduce systemic risk and provide greater stability to

markets during times of market disorder by allowing the clearing of transactions in over-the-counter derivatives through appropriately regulated clearing organizations; and

(8) to enhance the competitive position of United States financial institutions and financial markets.

TITLE I—COMMODITY FUTURES MODERNIZATION

SEC. 101. DEFINITIONS.

Section 1a of the Commodity Exchange Act (7 U.S.C. 1a) is

amended—

(1) by redesignating paragraphs (1) through (7), (8)

through (12), (13) through (15), and (16) as paragraphs (2)

through (8), (16) through (20), (22) through (24), and (28), respectively;

(2) by inserting before paragraph (2) (as redesignated by

paragraph (1)) the following:

‘‘(1) ALTERNATIVE TRADING SYSTEM.—The term ‘alternative

trading system’ means an organization, association, or group of

persons that—

‘‘(A) is registered as a broker or dealer pursuant to section 15(b) of the Securities Exchange Act of 1934 (except

paragraph (11) thereof);

‘‘(B) performs the functions commonly performed by an

exchange (as defined in section 3(a)(1) of the Securities Exchange Act of 1934);

‘‘(C) does not—

‘‘(i) set rules governing the conduct of subscribers

other than the conduct of such subscribers’ trading on

the alternative trading system; or

‘‘(ii) discipline subscribers other than by exclusion

from trading; and

‘‘(D) is exempt from the definition of the term ‘exchange’

under such section 3(a)(1) by rule or regulation of the Securities and Exchange Commission on terms that require

compliance with regulations of its trading functions.’’;

(3) by striking paragraph (2) (as redesignated by paragraph (1)) and inserting the following:

‘‘(2) BOARD OF TRADE.—The term ‘board of trade’ means

any organized exchange or other trading facility.’’;

(4) by inserting after paragraph (8) (as redesignated by

paragraph (1)) the following:

‘‘(9) DERIVATIVES CLEARING ORGANIZATION.— ‘‘(A) IN GENERAL.—The term ‘derivatives clearing organization’ means a clearinghouse, clearing association, clearing corporation, or similar entity, facility, system, or organization that, with respect to an agreement, contract, or

transaction—

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‘‘(i) enables each party to the agreement, contract,

or transaction to substitute, through novation or otherwise, the credit of the derivatives clearing organization

for the credit of the parties;

‘‘(ii) arranges or provides, on a multilateral basis,

for the settlement or netting of obligations resulting

from such agreements, contracts, or transactions executed by participants in the derivatives clearing organization; or

‘‘(iii) otherwise provides clearing services or arrangements that mutualize or transfer among participants in the derivatives clearing organization the credit risk arising from such agreements, contracts, or

transactions executed by the participants.

‘‘(B) EXCLUSIONS.—The term ‘derivatives clearing organization’ does not include an entity, facility, system, or organization solely because it arranges or provides for—

‘‘(i) settlement, netting, or novation of obligations

resulting from agreements, contracts, or transactions,

on a bilateral basis and without a central

counterparty;

‘‘(ii) settlement or netting of cash payments

through an interbank payment system; or

‘‘(iii) settlement, netting, or novation of obligations

resulting from a sale of a commodity in a transaction

in the spot market for the commodity.

‘‘(10) ELECTRONIC TRADING FACILITY.—The term ‘electronic

trading facility’ means a trading facility that—

‘‘(A) operates by means of an electronic or telecommunications network; and

‘‘(B) maintains an automated audit trail of bids, offers,

and the matching of orders or the execution of transactions

on the facility.

‘‘(11) ELIGIBLE COMMERCIAL ENTITY.—The term ‘eligible

commercial entity’ means, with respect to an agreement, contract or transaction in a commodity—

‘‘(A) an eligible contract participant described in clause

(i), (ii), (v), (vii), (viii), or (ix) of paragraph (12)(A) that, in

connection with its business—

‘‘(i) has a demonstrable ability, directly or through

separate contractual arrangements, to make or take delivery of the underlying commodity;

‘‘(ii) incurs risks, in addition to price risk, related

to the commodity; or

‘‘(iii) is a dealer that regularly provides risk management or hedging services to, or engages in marketmaking 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—

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‘‘(i) regularly enters into transactions to purchase

or sell the commodity or derivative agreements, contracts, or transactions in the commodity; and

‘‘(ii) either—

‘‘(I) in the case of a collective investment vehicle whose participants include persons other

than—

‘‘(aa) qualified eligible persons, as defined

in Commission rule 4.7(a) (17 C.F.R. 4.7(a));

‘‘(bb) accredited investors, as defined in

Regulation D of the Securities and Exchange

Commission under the Securities Act of 1933

(17 C.F.R. 230.501(a)), with total assets of

$2,000,000; or

‘‘(cc) qualified purchasers, as defined in

section 2(a)(51)(A) of the Investment Company

Act of 1940;

in each case as in effect on the date of the enactment of the Commodity Futures Modernization Act

of 2000, has, or is one of a group of vehicles under

common control or management having in the aggregate, $1,000,000,000 in total assets; or

‘‘(II) in the case of other persons, has, or is one

of a group of persons under common control or

management having in the aggregate,

$100,000,000 in total assets; or

‘‘(C) such other persons as the Commission shall determine appropriate and shall designate by rule, regulation,

or order.

‘‘(12) ELIGIBLE CONTRACT PARTICIPANT.—The term ‘eligible

contract participant’ means—

‘‘(A) acting for its own account—

‘‘(i) a financial institution;

‘‘(ii) an insurance company that is regulated by a

State, or that is regulated by a foreign government and

is subject to comparable regulation as determined by

the Commission, including a regulated subsidiary or

affiliate of such an insurance company;

‘‘(iii) an investment company subject to regulation

under the Investment Company Act of 1940 (15 U.S.C.

80a–1 et seq.) or a foreign person performing a similar

role or function subject as such to foreign regulation

(regardless of whether each investor in the investment

company or the foreign person is itself an eligible contract participant);

‘‘(iv) a commodity pool that—

‘‘(I) has total assets exceeding $5,000,000; and

‘‘(II) is formed and operated by a person subject to regulation under this Act or a foreign person performing a similar role or function subject

as such to foreign regulation (regardless of whether

each investor in the commodity pool or the foreign

person is itself an eligible contract participant);

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‘‘(v) a corporation, partnership, proprietorship, organization, trust, or other entity—

‘‘(I) that has total assets exceeding $10,000,000;

‘‘(II) the obligations of which under an agreement, contract, or transaction are guaranteed or

otherwise supported by a letter of credit or

keepwell, support, or other agreement by an entity

described in subclause (I), in clause (i), (ii), (iii),

(iv), or (vii), or in subparagraph (C); or

‘‘(III) that—

‘‘(aa) has a net worth exceeding $1,000,000; and

‘‘(bb) enters into an agreement, contract,

or transaction in connection with the conduct

of the entity’s business or to manage the risk

associated with an asset or liability owned or

incurred or reasonably likely to be owned or

incurred by the entity in the conduct of the entity’s business;

‘‘(vi) an employee benefit plan subject to the Employee Retirement Income Security Act of 1974 (29

U.S.C. 1001 et seq.), a governmental employee benefit

plan, or a foreign person performing a similar role or

function subject as such to foreign regulation— ‘‘(I) that has total assets exceeding $5,000,000;

or

‘‘(II) the investment decisions of which are

made by—

‘‘(aa) an investment adviser or commodity

trading advisor subject to regulation under the

Investment Advisers Act of 1940 (15 U.S.C.

80b–1 et seq.) or this Act;

‘‘(bb) a foreign person performing a similar role or function subject as such to foreign

regulation;

‘‘(cc) a financial institution; or

‘‘(dd) an insurance company described in

clause (ii), or a regulated subsidiary or affiliate of such an insurance company;

‘‘(vii)(I) a governmental entity (including the

United States, a State, or a foreign government) or political subdivision of a governmental entity;

‘‘(II) a multinational or supranational government

entity; or

‘‘(III) an instrumentality, agency, or department of

an entity described in subclause (I) or (II);

except that such term does not include an entity, instrumentality, agency, or department referred to in subclause (I) or (III) of this clause unless (aa) the entity,

instrumentality, agency, or department is a person described in clause (i), (ii), or (iii) of section 1a(11)(A);

(bb) the entity, instrumentality, agency, or department

owns and invests on a discretionary basis $25,000,000

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or more in investments; or (cc) the agreement, contract,

or transaction is offered by, and entered into with, an

entity that is listed in any of subclauses (I) through

(VI) of section 2(c)(2)(B)(ii);

‘‘(viii)(I) a broker or dealer subject to regulation

under the Securities Exchange Act of 1934 (15 U.S.C.

78a et seq.) or a foreign person performing a similar

role or function subject as such to foreign regulation,

except that, if the broker or dealer or foreign person is

a natural person or proprietorship, the broker or dealer

or foreign person shall not be considered to be an eligible contract participant unless the broker or dealer or

foreign person also meets the requirements of clause (v)

or (xi);

‘‘(II) an associated person of a registered broker or

dealer concerning the financial or securities activities

of which the registered person makes and keeps records

under section 15C(b) or 17(h) of the Securities Exchange Act of 1934 (15 U.S.C. 78o–5(b), 78q(h));

‘‘(III) an investment bank holding company (as defined in section 17(i) of the Securities Exchange Act of

1934 (15 U.S.C. 78q(i));

‘‘(ix) a futures commission merchant subject to regulation under this Act or a foreign person performing

a similar role or function subject as such to foreign regulation, except that, if the futures commission merchant or foreign person is a natural person or proprietorship, the futures commission merchant or foreign

person shall not be considered to be an eligible contract

participant unless the futures commission merchant or

foreign person also meets the requirements of clause (v)

or (xi);

‘‘(x) a floor broker or floor trader subject to regulation under this Act in connection with any transaction

that takes place on or through the facilities of a registered entity or an exempt board of trade, or any affiliate thereof, on which such person regularly trades; or

‘‘(xi) an individual who has total assets in an

amount in excess of—

‘‘(I) $10,000,000; or

‘‘(II) $5,000,000 and who enters into the agreement, contract, or transaction in order to manage

the risk associated with an asset owned or liability

incurred, or reasonably likely to be owned or incurred, by the individual;

‘‘(B)(i) a person described in clause (i), (ii), (iv), (v),

(viii), (ix), or (x) of subparagraph (A) or in subparagraph

(C), acting as broker or performing an equivalent agency

function on behalf of another person described in subparagraph (A) or (C); or

‘‘(ii) an investment adviser subject to regulation under

the Investment Advisers Act of 1940, a commodity trading

advisor subject to regulation under this Act, a foreign person performing a similar role or function subject as such to

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foreign regulation, or a person described in clause (i), (ii),

(iv), (v), (viii), (ix), or (x) of subparagraph (A) or in subparagraph (C), in any such case acting as investment manager or fiduciary (but excluding a person acting as broker

or performing an equivalent agency function) for another

person described in subparagraph (A) or (C) and who is authorized by such person to commit such person to the transaction; or

‘‘(C) any other person that the Commission determines

to be eligible in light of the financial or other qualifications

of the person.

‘‘(13) EXCLUDED COMMODITY.—The term ‘excluded commodity’ means—

‘‘(i) an interest rate, exchange rate, currency, security, security index, credit risk or measure, debt or equity instrument, index or measure of inflation, or other

macroeconomic index or measure;

‘‘(ii) any other rate, differential, index, or measure

of economic or commercial risk, return, or value that

is—

‘‘(I) not based in substantial part on the value

of a narrow group of commodities not described in

clause (i); or

‘‘(II) based solely on 1 or more commodities

that have no cash market;

‘‘(iii) any economic or commercial index based on

prices, rates, values, or levels that are not within the

control of any party to the relevant contract, agreement,

or transaction; or

‘‘(iv) an occurrence, extent of an occurrence, or contingency (other than a change in the price, rate, value,

or level of a commodity not described in clause (i)) that

is—

‘‘(I) beyond the control of the parties to the relevant contract, agreement, or transaction; and

‘‘(II) associated with a financial, commercial,

or economic consequence.

‘‘(14) EXEMPT COMMODITY.—The term ‘exempt commodity’

means a commodity that is not an excluded commodity or an

agricultural commodity.

‘‘(15) FINANCIAL INSTITUTION.—The term ‘financial institution’ means—

‘‘(A) a corporation operating under the fifth undesignated paragraph of section 25 of the Federal Reserve Act

(12 U.S.C. 603), commonly known as ‘an agreement corporation’;

‘‘(B) a corporation organized under section 25A of the

Federal Reserve Act (12 U.S.C. 611 et seq.), commonly

known as an ‘Edge Act corporation’;

‘‘(C) an institution that is regulated by the Farm Credit

Administration;

‘‘(D) a Federal credit union or State credit union (as

defined in section 101 of the Federal Credit Union Act (12

U.S.C. 1752));

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‘‘(E) a depository institution (as defined in section 3 of

the Federal Deposit Insurance Act (12 U.S.C. 1813));

‘‘(F) a foreign bank or a branch or agency of a foreign

bank (each as defined in section 1(b) of the International

Banking Act of 1978 (12 U.S.C. 3101(b)));

‘‘(G) any financial holding company (as defined in section 2 of the Bank Holding Company Act of 1956);

‘‘(H) a trust company; or

‘‘(I) a similarly regulated subsidiary or affiliate of an

entity described in any of subparagraphs (A) through (H).’’;

(5) by inserting after paragraph (20) (as redesignated by

paragraph (1)) the following:

‘‘(21) HYBRID INSTRUMENT.—The term ‘hybrid instrument’

means a security having 1 or more payments indexed to the

value, level, or rate of, or providing for the delivery of, 1 or

more commodities.’’;

(6) by striking paragraph (24) (as redesignated by paragraph (1)) and inserting the following:

‘‘(24) MEMBER OF A CONTRACT MARKET; MEMBER OF A DE- RIVATIVES TRANSACTION EXECUTION FACILITY.—The term ‘member’ means, with respect to a contract market or derivatives

transaction execution facility, an individual, association, partnership, corporation, or trust—

‘‘(A) owning or holding membership in, or admitted to

membership representation on, the contract market or derivatives transaction execution facility; or

‘‘(B) having trading privileges on the contract market

or derivatives transaction execution facility.

‘‘(25) NARROW-BASED SECURITY INDEX.— ‘‘(A) The term ‘narrow-based security index’ means an

index—

‘‘(i) that has 9 or fewer component securities;

‘‘(ii) in which a component security comprises more

than 30 percent of the index’s weighting;

‘‘(iii) in which the 5 highest weighted component

securities in the aggregate comprise more than 60 percent of the index’s weighting; or

‘‘(iv) in which the lowest weighted component securities comprising, in the aggregate, 25 percent of the

index’s weighting have an aggregate dollar value of average daily trading volume of less than $50,000,000 (or

in the case of an index with 15 or more component securities, $30,000,000), except that if there are two or

more securities with equal weighting that could be included in the calculation of the lowest weighted component securities comprising, in the aggregate, 25 percent

of the index’s weighting, such securities shall be ranked

from lowest to highest dollar value of average daily

trading volume and shall be included in the calculation based on their ranking starting with the lowest

ranked security.

‘‘(B) Notwithstanding subparagraph (A), an index is

not a narrow-based security index if—

‘‘(i)(I) it has at least 9 component securities;

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‘‘(II) no component security comprises more than

30 percent of the index’s weighting; and

‘‘(III) each component security is—

‘‘(aa) registered pursuant to section 12 of the

Securities Exchange Act of 1934;

‘‘(bb) 1 of 750 securities with the largest market capitalization; and

‘‘(cc) 1 of 675 securities with the largest dollar

value of average daily trading volume;

‘‘(ii) a board of trade was designated as a contract

market by the Commodity Futures Trading Commission with respect to a contract of sale for future delivery on the index, before the date of enactment of the

Commodity Futures Modernization Act of 2000;

‘‘(iii)(I) a contract of sale for future delivery on the

index traded on a designated contract market or registered derivatives transaction execution facility for at

least 30 days as a contract of sale for future delivery

on an index that was not a narrow-based security

index; and

‘‘(II) it has been a narrow-based security index for

no more than 45 business days over 3 consecutive calendar months;

‘‘(iv) a contract of sale for future delivery on the

index is traded on or subject to the rules of a foreign

board of trade and meets such requirements as are

jointly established by rule or regulation by the Commission and the Securities and Exchange Commission;

‘‘(v) no more than 18 months have passed since the

date of enactment of the Commodity Futures Modernization Act of 2000 and—

‘‘(I) it is traded on or subject to the rules of a

foreign board of trade;

‘‘(II) the offer and sale in the United States of

a contract of sale for future delivery on the index

was authorized before the date of the enactment of

the Commodity Futures Modernization Act of

2000; and

‘‘(III) the conditions of such authorization continue to be met; or

‘‘(vi) a contract of sale for future delivery on the

index is traded on or subject to the rules of a board of

trade and meets such requirements as are jointly established by rule, regulation, or order by the Commission

and the Securities and Exchange Commission.

‘‘(C) Within 1 year after the date of the enactment of

the Commodity Futures Modernization Act of 2000, the

Commission and the Securities and Exchange Commission

jointly shall adopt rules or regulations that set forth the requirements under subparagraph (B)(iv).

‘‘(D) An index that is a narrow-based security index

solely because it was a narrow-based security index for

more than 45 business days over 3 consecutive calendar

months pursuant to clause (iii) of subparagraph (B) shall

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not be a narrow-based security index for the 3 following

calendar months.

‘‘(E) For purposes of subparagraphs (A) and (B)—

‘‘(i) the dollar value of average daily trading volume and the market capitalization shall be calculated

as of the preceding 6 full calendar months; and

‘‘(ii) the Commission and the Securities and Exchange Commission shall, by rule or regulation, jointly

specify the method to be used to determine market capitalization and dollar value of average daily trading

volume.

‘‘(26) OPTION.—The term ‘option’ means an agreement, contract, or transaction that is of the character of, or is commonly

known to the trade as, an ‘option’, ‘privilege’, ‘indemnity’, ‘bid’,

‘offer’, ‘put’, ‘call’, ‘advance guaranty’, or ‘decline guaranty’.

‘‘(27) ORGANIZED EXCHANGE.—The term ‘organized exchange’ means a trading facility that—

‘‘(A) permits trading—

‘‘(i) by or on behalf of a person that is not an eligible contract participant; or

‘‘(ii) by persons other than on a principal-to-principal basis; or

‘‘(B) has adopted (directly or through another nongovernmental entity) rules that—

‘‘(i) govern the conduct of participants, other than

rules that govern the submission of orders or execution

of transactions on the trading facility; and

‘‘(ii) include disciplinary sanctions other than the

exclusion of participants from trading.’’; and

(7) by adding at the end the following:

‘‘(29) REGISTERED ENTITY.—The term ‘registered entity’

means—

‘‘(A) a board of trade designated as a contract market

under section 5;

‘‘(B) a derivatives transaction execution facility registered under section 5a;

‘‘(C) a derivatives clearing organization registered

under section 5b; and

‘‘(D) a board of trade designated as a contract market

under section 5f.

‘‘(30) SECURITY.—The term ‘security’ means a security as

defined in section 2(a)(1) of the Securities Act of 1933 (15

U.S.C. 77b(a)(1)) or section 3(a)(10) of the Securities Exchange

Act of 1934 (15 U.S.C. 78c(a)(10)).

‘‘(31) SECURITY FUTURE.—The term ‘security future’ means

a contract of sale for future delivery of a single security or of

a narrow-based security index, including any interest therein or

based on the value thereof, except an exempted security under

section 3(a)(12) of the Securities Exchange Act of 1934 as in effect on the date of enactment of the Futures Trading Act of 1982

(other than any municipal security as defined in section

3(a)(29) of the Securities Exchange Act of 1934 as in effect on

the date of enactment of the Futures Trading Act of 1982). The

term ‘security future’ does not include any agreement, contract,

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or transaction excluded from this Act under section 2(c), 2(d),

2(f), or 2(g) of this Act (as in effect on the date of the enactment

of the Commodity Futures Modernization Act of 2000) or title

IV of the Commodity Futures Modernization Act of 2000.

‘‘(32) SECURITY FUTURES PRODUCT.—The term ‘security futures product’ means a security future or any put, call, straddle,

option, or privilege on any security future.

‘‘(33) TRADING FACILITY.—

‘‘(A) IN GENERAL.—The term ‘trading facility’ means a

person or group of persons that constitutes, maintains, or

provides a physical or electronic facility or system in which

multiple participants have the ability to execute or trade

agreements, contracts, or transactions by accepting bids

and offers made by other participants that are open to multiple participants in the facility or system.

‘‘(B) EXCLUSIONS.—The term ‘trading facility’ does not

include—

‘‘(i) a person or group of persons solely because the

person or group of persons constitutes, maintains, or

provides an electronic facility or system that enables

participants to negotiate the terms of and enter into bilateral transactions as a result of communications exchanged by the parties and not from interaction of

multiple bids and multiple offers within a predetermined, nondiscretionary automated trade matching

and execution algorithm;

‘‘(ii) a government securities dealer or government

securities broker, to the extent that the dealer or broker

executes or trades agreements, contracts, or transactions in government securities, or assists persons in

communicating about, negotiating, entering into, executing, or trading an agreement, contract, or transaction in government securities (as the terms ‘government securities dealer’, ‘government securities broker’,

and ‘government securities’ are defined in section 3(a)

of the Securities Exchange Act of 1934 (15 U.S.C.

78c(a))); or

‘‘(iii) facilities on which bids and offers, and acceptances of bids and offers effected on the facility, are

not binding.

Any person, group of persons, dealer, broker, or facility described in clause (i) or (ii) is excluded from the meaning of

the term ‘trading facility’ for the purposes of this Act without any prior specific approval, certification, or other action

by the Commission.

‘‘(C) SPECIAL RULE.—A person or group of persons that

would not otherwise constitute a trading facility shall not

be considered to be a trading facility solely as a result of

the submission to a derivatives clearing organization of

transactions executed on or through the person or group of

persons.’’.

662

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 COM- MODITIES.—

‘‘(1) IN GENERAL.—Except as provided in paragraph (2),

nothing in this Act (other than section 5a (to the extent provided

in section 5a(g)), 5b, 5d, or 12(e)(2)(B)) governs or applies to an

agreement, contract, or transaction in—

‘‘(A) foreign currency;

‘‘(B) government securities;

‘‘(C) security warrants;

‘‘(D) security rights;

‘‘(E) resales of installment loan contracts;

‘‘(F) repurchase transactions in an excluded commodity; or

‘‘(G) mortgages or mortgage purchase commitments.

‘‘(2) COMMISSION JURISDICTION.— ‘‘(A) AGREEMENTS, CONTRACTS, AND TRANSACTIONS

TRADED ON AN ORGANIZED EXCHANGE.—This Act applies to,

and the Commission shall have jurisdiction over, an agreement, contract, or transaction described in paragraph (1)

that is—

‘‘(i) a contract of sale of a commodity for future delivery (or an option on such a contract), or an option

on a commodity (other than foreign currency or a security or a group or index of securities), that is executed

or traded on an organized exchange; or

‘‘(ii) an option on foreign currency executed or traded on an organized exchange that is not a national securities exchange registered pursuant to section 6(a) of

the Securities Exchange Act of 1934.

‘‘(B) AGREEMENTS, CONTRACTS, AND TRANSACTIONS IN

RETAIL FOREIGN CURRENCY.—This Act applies to, and the

Commission shall have jurisdiction over, an agreement,

contract, or transaction in foreign currency that—

‘‘(i) is a contract of sale of a commodity for future

delivery (or an option on such a contract) or an option

(other than an option executed or traded on a national

securities exchange registered pursuant to section 6(a)

of the Securities Exchange Act of 1934); and

‘‘(ii) is offered to, or entered into with, a person

that is not an eligible contract participant, unless the

counterparty, or the person offering to be the

counterparty, of the person is—

‘‘(I) a financial institution;

‘‘(II) a broker or dealer registered under section 15(b) or 15C of the Securities Exchange Act of

1934 (15 U.S.C. 78o(b), 78o–5) or a futures commission merchant registered under this Act;

‘‘(III) an associated person of a broker or dealer registered under section 15(b) or 15C of the SeVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00666 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.005 pfrm03 PsN: HR1033
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curities Exchange Act of 1934 (15 U.S.C. 78o(b),

78o–5), or an affiliated person of a futures commission merchant registered under this Act, concerning the financial or securities activities of

which the registered person makes and keeps

records under section 15C(b) or 17(h) of the Securities Exchange Act of 1934 (15 U.S.C. 78o–5(b),

78q(h)) or section 4f(c)(2)(B) of this Act;

‘‘(IV) an insurance company described in section 1a(12)(A)(ii) of this Act, or a regulated subsidiary or affiliate of such an insurance company;

‘‘(V) a financial holding company (as defined

in section 2 of the Bank Holding Company Act of

1956); or

‘‘(VI) an investment bank holding company (as

defined in section 17(i) of the Securities Exchange

Act of 1934).

‘‘(C) Notwithstanding subclauses (II) and (III) of subparagraph (B)(ii), agreements, contracts, or transactions described in subparagraph (B) shall be subject to sections 4b,

4c(b), 6(c) and 6(d) (to the extent that sections 6(c) and 6(d)

prohibit manipulation of the market price of any commodity, in interstate commerce, or for future delivery on or

subject to the rules of any market), 6c, 6d, and 8(a) if they

are entered into by a futures commission merchant or an

affiliate of a futures commission merchant that is not also

an entity described in subparagraph (B)(ii) of this paragraph.’’.

SEC. 103. LEGAL CERTAINTY FOR EXCLUDED DERIVATIVE TRANSACTIONS.

Section 2 of the Commodity Exchange Act (7 U.S.C. 2, 2a, 3,

4, 4a) is further amended by adding at the end the following:

‘‘(d) EXCLUDED DERIVATIVE TRANSACTIONS.— ‘‘(1) IN GENERAL.—Nothing in this Act (other than section

5b or 12(e)(2)(B)) governs or applies to an agreement, contract,

or transaction in an excluded commodity if—

‘‘(A) the agreement, contract, or transaction is entered

into only between persons that are eligible contract participants at the time at which the persons enter into the agreement, contract, or transaction; and

‘‘(B) the agreement, contract, or transaction is not executed or traded on a trading facility.

‘‘(2) ELECTRONIC TRADING FACILITY EXCLUSION.—Nothing

in this Act (other than section 5a (to the extent provided in section 5a(g)), 5b, 5d, or 12(e)(2)(B)) governs or applies to an

agreement, contract, or transaction in an excluded commodity

if—

‘‘(A) the agreement, contract, or transaction is entered

into on a principal-to-principal basis between parties trading for their own accounts or as described in section

1a(12)(B)(ii);

‘‘(B) the agreement, contract, or transaction is entered

into only between persons that are eligible contract participants described in subparagraph (A), (B)(ii), or (C) of secVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00667 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.005 pfrm03 PsN: HR1033
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tion 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

665

‘‘(D) the hybrid instrument is not marketed as a contract of sale of a commodity for future delivery (or option

on such a contract) subject to this Act.

‘‘(3) MARK-TO-MARKET MARGINING REQUIREMENTS.—For the

purposes of paragraph (2)(C), mark-to-market margining requirements do not include the obligation of an issuer of a secured debt instrument to increase the amount of collateral held

in pledge for the benefit of the purchaser of the secured debt instrument to secure the repayment obligations of the issuer under

the secured debt instrument.’’.

(b) SWAP TRANSACTIONS.—Section 2 of the Commodity Exchange Act (7 U.S.C. 2, 2a, 3, 4, 4a) is further amended by adding

at the end the following:

‘‘(g) EXCLUDED SWAP TRANSACTIONS.—No provision of this Act

(other than section 5a (to the extent provided in section 5a(g)), 5b,

5d, or 12(e)(2)) shall apply to or govern any agreement, contract, or

transaction in a commodity other than an agricultural commodity

if the agreement, contract, or transaction is—

‘‘(1) entered into only between persons that are eligible contract participants at the time they enter into the agreement, contract, or transaction;

‘‘(2) subject to individual negotiation by the parties; and

‘‘(3) not executed or traded on a trading facility.’’.

(c) STUDY REGARDING RETAIL SWAPS.— (1) IN GENERAL.—The Board of Governors of the Federal

Reserve System, the Secretary of the Treasury, the Commodity

Futures Trading Commission, and the Securities and Exchange

Commission shall conduct a study of issues involving the offering of swap agreements to persons other than eligible contract

participants (as defined in section 1a of the Commodity Exchange Act).

(2) MATTERS TO BE ADDRESSED.—The study shall

address—

(A) the potential uses of swap agreements by persons

other than eligible contract participants;

(B) the extent to which financial institutions are willing to offer swap agreements to persons other than eligible

contract participants;

(C) the appropriate regulatory structure to address customer protection issues that may arise in connection with

the offer of swap agreements to persons other than eligible

contract participants; and

(D) such other relevant matters deemed necessary or

appropriate to address.

(3) REPORT.—Before the end of the 1-year period beginning

on the date of enactment of this Act, a report on the findings

and conclusions of the study required by paragraph (1) shall be

submitted to Congress, together with such recommendations for

legislative action as are deemed necessary and appropriate.

SEC. 106. TRANSACTIONS IN EXEMPT COMMODITIES.

Section 2 of the Commodity Exchange Act (7 U.S.C. 2, 2a, 3,

4, 4a) is further amended by adding at the end the following.

‘‘(h) LEGAL CERTAINTY FOR CERTAIN TRANSACTIONS IN EXEMPT

COMMODITIES.—

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‘‘(1) Except as provided in paragraph (2), nothing in this

Act shall apply to a contract, agreement or transaction in an exempt commodity which—

‘‘(A) is entered into solely between persons that are eligible contract participants at the time the persons enter

into the agreement, contract, or transaction; and

‘‘(B) is not entered into on a trading facility.

‘‘(2) An agreement, contract, or transaction described in

paragraph (1) of this subsection shall be subject to—

‘‘(A) sections 5b and 12(e)(2)(B);

‘‘(B) sections 4b, 4o, 6(c), 6(d), 6c, 6d, and 8a, and the

regulations of the Commission pursuant to section 4c(b)

proscribing fraud in connection with commodity option

transactions, to the extent the agreement, contract, or transaction is not between eligible commercial entities (unless 1

of the entities is an instrumentality, department, or agency

of a State or local governmental entity) and would otherwise be subject to such sections and regulations; and

‘‘(C) sections 6(c), 6(d), 6c, 6d, 8a, and 9(a)(2), to the

extent such sections prohibit manipulation of the market

price of any commodity in interstate commerce and the

agreement, contract, or transaction would otherwise be subject to such sections.

‘‘(3) Except as provided in paragraph (4), nothing in this

Act shall apply to an agreement, contract, or transaction in an

exempt commodity which is—

‘‘(A) entered into on a principal-to-principal basis solely

between persons that are eligible commercial entities at the

time the persons enter into the agreement, contract, or

transaction; and

‘‘(B) executed or traded on an electronic trading facility.

‘‘(4) An agreement, contract, or transaction described in

paragraph (3) of this subsection shall be subject to—

‘‘(A) sections 5a (to the extent provided in section 5a(g)),

5b, 5d, and 12(e)(2)(B);

‘‘(B) sections 4b and 4o and the regulations of the Commission pursuant to section 4c(b) proscribing fraud in connection with commodity option transactions to the extent

the agreement, contract, or transaction would otherwise be

subject to such sections and regulations;

‘‘(C) sections 6(c) and 9(a)(2), to the extent such sections

prohibit manipulation of the market price of any commodity in interstate commerce and to the extent the agreement, contract, or transaction would otherwise be subject to

such sections; and

‘‘(D) such rules and regulations as the Commission

may prescribe if necessary to ensure timely dissemination

by the electronic trading facility of price, trading volume,

and other trading data to the extent appropriate, if the

Commission determines that the electronic trading facility

performs a significant price discovery function for transactions in the cash market for the commodity underlying

667

any agreement, contract, or transaction executed or traded

on the electronic trading facility.

‘‘(5) An electronic trading facility relying on the exemption

provided in paragraph (3) shall—

‘‘(A) notify the Commission of its intention to operate

an electronic trading facility in reliance on the exemption

set forth in paragraph (3), which notice shall include—

‘‘(i) the name and address of the facility and a person designated to receive communications from the

Commission;

‘‘(ii) the commodity categories that the facility intends to list or otherwise make available for trading on

the facility in reliance on the exemption set forth in

paragraph (3);

‘‘(iii) certifications that—

‘‘(I) no executive officer or member of the governing board of, or any holder of a 10 percent or

greater equity interest in, the facility is a person

described in any of subparagraphs (A) through (H)

of section 8a(2);

‘‘(II) the facility will comply with the conditions for exemption under this paragraph; and

‘‘(III) the facility will notify the Commission of

any material change in the information previously

provided by the facility to the Commission pursuant to this paragraph; and

‘‘(iv) the identity of any derivatives clearing organization to which the facility transmits or intends to

transmit transaction data for the purpose of facilitating the clearance and settlement of transactions conducted on the facility in reliance on the exemption set

forth in paragraph (3);

‘‘(B)(i)(I) provide the Commission with access to the facility’s trading protocols and electronic access to the facility

with respect to transactions conducted in reliance on the exemption set forth in paragraph (3); or

‘‘(II) provide such reports to the Commission regarding

transactions executed on the facility in reliance on the exemption set forth in paragraph (3) as the Commission may

from time to time request to enable the Commission to satisfy its obligations under this Act;

‘‘(ii) maintain for 5 years, and make available for inspection by the Commission upon request, records of activities related to its business as an electronic trading facility

exempt under paragraph (3), including—

‘‘(I) information relating to data entry and transaction details sufficient to enable the Commission to reconstruct trading activity on the facility conducted in

reliance on the exemption set forth in paragraph (3);

and

‘‘(II) the name and address of each participant on

the facility authorized to enter into transactions in reliance on the exemption set forth in paragraph (3); and

668

‘‘(iii) upon special call by the Commission, provide to

the Commission, in a form and manner and within the period specified in the special call, such information related

to its business as an electronic trading facility exempt

under paragraph (3), including information relating to

data entry and transaction details in respect of transactions entered into in reliance on the exemption set forth

in paragraph (3), as the Commission may determine

appropriate—

‘‘(I) to enforce the provisions specified in subparagraphs (B) and (C) of paragraph (4);

‘‘(II) to evaluate a systemic market event; or

‘‘(III) to obtain information requested by a Federal

financial regulatory authority in order to enable the

regulator to fulfill its regulatory or supervisory responsibilities;

‘‘(C)(i) upon receipt of any subpoena issued by or on behalf of the Commission to any foreign person who the Commission believes is conducting or has conducted transactions in reliance on the exemption set forth in paragraph

(3) on or through the electronic trading facility relating to

the transactions, promptly notify the foreign person of, and

transmit to the foreign person, the subpoena in a manner

reasonable under the circumstances, or as specified by the

Commission; and

‘‘(ii) if the Commission has reason to believe that a person has not timely complied with a subpoena issued by or

on behalf of the Commission pursuant to clause (i), and the

Commission in writing has directed that a facility relying

on the exemption set forth in paragraph (3) deny or limit

further transactions by the person, the facility shall deny

that person further trading access to the facility or, as applicable, limit that person’s access to the facility for liquidation trading only;

‘‘(D) comply with the requirements of this paragraph

applicable to the facility and require that each participant,

as a condition of trading on the facility in reliance on the

exemption set forth in paragraph (3), agree to comply with

all applicable law;

‘‘(E) have a reasonable basis for believing that participants authorized to conduct transactions on the facility in

reliance on the exemption set forth in paragraph (3) are eligible commercial entities; and

‘‘(F) not represent to any person that the facility is registered with, or designated, recognized, licensed or approved by the Commission.

‘‘(6) A person named in a subpoena referred to in paragraph (5)(C) that believes the person is or may be adversely affected or aggrieved by action taken by the Commission under

this section, shall have the opportunity for a prompt hearing

after the Commission acts under procedures that the Commission shall establish by rule, regulation, or order.’’.

669

SEC. 107. APPLICATION OF COMMODITY FUTURES LAWS.

Section 2 of the Commodity Exchange Act (7 U.S.C. 2, 2a, 3,

4, 4a) is further amended by adding at the end the following:

‘‘(i) APPLICATION OF COMMODITY FUTURES LAWS.—

‘‘(1) No provision of this Act shall be construed as implying

or creating any presumption that—

‘‘(A) any agreement, contract, or transaction that is excluded from this Act under section 2(c), 2(d), 2(e), 2(f), or

2(g) of this Act or title IV of the Commodity Futures Modernization Act of 2000, or exempted under section 2(h) or

4(c) of this Act; or

‘‘(B) any agreement, contract, or transaction, not otherwise subject to this Act, that is not so excluded or exempted,

is or would otherwise be subject to this Act.

‘‘(2) No provision of, or amendment made by, the Commodity Futures Modernization Act of 2000 shall be construed as

conferring jurisdiction on the Commission with respect to any

such agreement, contract, or transaction, except as expressly

provided in section 5a of this Act (to the extent provided in section 5a(g) of this Act), 5b of this Act, or 5d of this Act.’’.

SEC. 108. PROTECTION OF THE PUBLIC INTEREST.

The Commodity Exchange Act is amended by striking section 3

(7 U.S.C. 5) and inserting the following:

‘‘SEC. 3. FINDINGS AND PURPOSE.

‘‘(a) FINDINGS.—The transactions subject to this Act are entered

into regularly in interstate and international commerce and are affected with a national public interest by providing a means for

managing and assuming price risks, discovering prices, or disseminating pricing information through trading in liquid, fair and financially secure trading facilities.

‘‘(b) PURPOSE.—It is the purpose of this Act to serve the public

interests described in subsection (a) through a system of effective

self-regulation of trading facilities, clearing systems, market participants and market professionals under the oversight of the Commission. To foster these public interests, it is further the purpose of this

Act to deter and prevent price manipulation or any other disruptions to market integrity; to ensure the financial integrity of all

transactions subject to this Act and the avoidance of systemic risk;

to protect all market participants from fraudulent or other abusive

sales practices and misuses of customer assets; and to promote responsible innovation and fair competition among boards of trade,

other markets and market participants.’’.

SEC. 109. PROHIBITED TRANSACTIONS.

Section 4c of the Commodity Exchange Act (7 U.S.C. 6c) is

amended by striking ‘‘SEC. 4c.’’ and all that follows through subsection (a) and inserting the following:

‘‘SEC. 4c. PROHIBITED TRANSACTIONS.

‘‘(a) IN GENERAL.—

‘‘(1) PROHIBITION.—It shall be unlawful for any person to

offer to enter into, enter into, or confirm the execution of a

transaction described in paragraph (2) involving the purchase

or sale of any commodity for future delivery (or any option on

670

such a transaction or option on a commodity) if the transaction

is used or may be used to—

‘‘(A) hedge any transaction in interstate commerce in

the commodity or the product or byproduct of the commodity;

‘‘(B) determine the price basis of any such transaction

in interstate commerce in the commodity; or

‘‘(C) deliver any such commodity sold, shipped, or received in interstate commerce for the execution of the transaction.

‘‘(2) TRANSACTION.—A transaction referred to in paragraph

(1) is a transaction that—

‘‘(A)(i) is, is of the character of, or is commonly known

to the trade as, a ‘wash sale’ or ‘accommodation trade’; or

‘‘(ii) is a fictitious sale; or

‘‘(B) is used to cause any price to be reported, registered, or recorded that is not a true and bona fide price.’’.

SEC. 110. DESIGNATION OF BOARDS OF TRADE AS CONTRACT MARKETS.

The Commodity Exchange Act is amended—

(1) by redesignating section 5b (7 U.S.C. 7b) as section 5e;

and

(2) by striking sections 5 and 5a (7 U.S.C. 7, 7a) and inserting the following:

‘‘SEC. 5. DESIGNATION OF BOARDS OF TRADE AS CONTRACT MARKETS.

‘‘(a) APPLICATIONS.—A board of trade applying to the Commission for designation as a contract market shall submit an application to the Commission that includes any relevant materials and

records the Commission may require consistent with this Act.

‘‘(b) CRITERIA FOR DESIGNATION.—

‘‘(1) IN GENERAL.—To be designated as a contract market,

the board of trade shall demonstrate to the Commission that

the board of trade meets the criteria specified in this subsection.

‘‘(2) PREVENTION OF MARKET MANIPULATION.—The board of

trade shall have the capacity to prevent market manipulation

through market surveillance, compliance, and enforcement

practices and procedures, including methods for conducting

real-time monitoring of trading and comprehensive and accurate trade reconstructions.

‘‘(3) FAIR AND EQUITABLE TRADING.—The board of trade

shall establish and enforce trading rules to ensure fair and equitable trading through the facilities of the contract market,

and the capacity to detect, investigate, and discipline any person that violates the rules. The rules may authorize—

‘‘(A) transfer trades or office trades;

‘‘(B) an exchange of—

‘‘(i) futures in connection with a cash commodity

transaction;

‘‘(ii) futures for cash commodities; or

‘‘(iii) futures for swaps; or

‘‘(C) a futures commission merchant, acting as principal or agent, to enter into or confirm the execution of a

contract for the purchase or sale of a commodity for future

671

delivery if the contract is reported, recorded, or cleared in

accordance with the rules of the contract market or a derivatives clearing organization.

‘‘(4) TRADE EXECUTION FACILITY.—The board of trade

shall—

‘‘(A) establish and enforce rules defining, or specifications detailing, the manner of operation of the trade execution facility maintained by the board of trade, including

rules or specifications describing the operation of any electronic matching platform; and

‘‘(B) demonstrate that the trade execution facility operates in accordance with the rules or specifications.

‘‘(5) FINANCIAL INTEGRITY OF TRANSACTIONS.—The board of

trade shall establish and enforce rules and procedures for ensuring the financial integrity of transactions entered into by or

through the facilities of the contract market, including the

clearance and settlement of the transactions with a derivatives

clearing organization.

‘‘(6) DISCIPLINARY PROCEDURES.—The board of trade shall

establish and enforce disciplinary procedures that authorize the

board of trade to discipline, suspend, or expel members or market participants that violate the rules of the board of trade, or

similar methods for performing the same functions, including

delegation of the functions to third parties.

‘‘(7) PUBLIC ACCESS.—The board of trade shall provide the

public with access to the rules, regulations, and contract specifications of the board of trade.

‘‘(8) ABILITY TO OBTAIN INFORMATION.—The board of trade

shall establish and enforce rules that will allow the board of

trade to obtain any necessary information to perform any of the

functions described in this subsection, including the capacity to

carry out such international information-sharing agreements as

the Commission may require.

‘‘(c) EXISTING CONTRACT MARKETS.—A board of trade that is

designated as a contract market on the date of the enactment of the

Commodity Futures Modernization Act of 2000 shall be considered

to be a designated contract market under this section.

‘‘(d) CORE PRINCIPLES FOR CONTRACT MARKETS.—

‘‘(1) IN GENERAL.—To maintain the designation of a board

of trade as a contract market, the board of trade shall comply

with the core principles specified in this subsection. The board

of trade shall have reasonable discretion in establishing the

manner in which it complies with the core principles.

‘‘(2) COMPLIANCE WITH RULES.—The board of trade shall

monitor and enforce compliance with the rules of the contract

market, including the terms and conditions of any contracts to

be traded and any limitations on access to the contract market.

‘‘(3) CONTRACTS NOT READILY SUBJECT TO MANIPULATION.—

The board of trade shall list on the contract market only contracts that are not readily susceptible to manipulation.

‘‘(4) MONITORING OF TRADING.—The board of trade shall

monitor trading to prevent manipulation, price distortion, and

disruptions of the delivery or cash-settlement process.

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‘‘(5) POSITION LIMITATIONS OR ACCOUNTABILITY.—To reduce

the potential threat of market manipulation or congestion, especially during trading in the delivery month, the board of trade

shall adopt position limitations or position accountability for

speculators, where necessary and appropriate.

‘‘(6) EMERGENCY AUTHORITY.—The board of trade shall

adopt rules to provide for the exercise of emergency authority,

in consultation or cooperation with the Commission, where necessary and appropriate, including the authority to—

‘‘(A) liquidate or transfer open positions in any contract;

‘‘(B) suspend or curtail trading in any contract; and

‘‘(C) require market participants in any contract to

meet special margin requirements.

‘‘(7) AVAILABILITY OF GENERAL INFORMATION.—The board of

trade shall make available to market authorities, market participants, and the public information concerning—

‘‘(A) the terms and conditions of the contracts of the

contract market; and

‘‘(B) the mechanisms for executing transactions on or

through the facilities of the contract market.

‘‘(8) DAILY PUBLICATION OF TRADING INFORMATION.—The

board of trade shall make public daily information on settlement prices, volume, open interest, and opening and closing

ranges for actively traded contracts on the contract market.

‘‘(9) EXECUTION OF TRANSACTIONS.—The board of trade

shall provide a competitive, open, and efficient market and

mechanism for executing transactions.

‘‘(10) TRADE INFORMATION.—The board of trade shall maintain rules and procedures to provide for the recording and safe

storage of all identifying trade information in a manner that

enables the contract market to use the information for purposes

of assisting in the prevention of customer and market abuses

and providing evidence of any violations of the rules of the contract market.

‘‘(11) FINANCIAL INTEGRITY OF CONTRACTS.—The board of

trade shall establish and enforce rules providing for the financial integrity of any contracts traded on the contract market (including the clearance and settlement of the transactions with a

derivatives clearing organization), and rules to ensure the financial integrity of any futures commission merchants and introducing brokers and the protection of customer funds.

‘‘(12) PROTECTION OF MARKET PARTICIPANTS.—The board of

trade shall establish and enforce rules to protect market participants from abusive practices committed by any party acting as

an agent for the participants.

‘‘(13) DISPUTE RESOLUTION.—The board of trade shall establish and enforce rules regarding and provide facilities for alternative dispute resolution as appropriate for market participants and any market intermediaries.

‘‘(14) GOVERNANCE FITNESS STANDARDS.—The board of

trade shall establish and enforce appropriate fitness standards

for directors, members of any disciplinary committee, members

of the contract market, and any other persons with direct access

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to the facility (including any parties affiliated with any of the

persons described in this paragraph).

‘‘(15) CONFLICTS OF INTEREST.—The board of trade shall

establish and enforce rules to minimize conflicts of interest in

the decisionmaking process of the contract market and establish

a process for resolving such conflicts of interest.

‘‘(16) COMPOSITION OF BOARDS OF MUTUALLY OWNED CONTRACT MARKETS.—In the case of a mutually owned contract

market, the board of trade shall ensure that the composition of

the governing board reflects market participants.

‘‘(17) RECORDKEEPING.—The board of trade shall maintain

records of all activities related to the business of the contract

market in a form and manner acceptable to the Commission for

a period of 5 years.

‘‘(18) ANTITRUST CONSIDERATIONS.—Unless necessary or

appropriate to achieve the purposes of this Act, the board of

trade shall endeavor to avoid—

‘‘(A) adopting any rules or taking any actions that result in any unreasonable restraints of trade; or

‘‘(B) imposing any material anticompetitive burden on

trading on the contract market.

‘‘(e) CURRENT AGRICULTURAL COMMODITIES.—

‘‘(1) Subject to paragraph (2) of this subsection, a contract

for purchase or sale for future delivery of an agricultural commodity enumerated in section 1a(4) that is available for trade

on a contract market, as of the date of the enactment of this

subsection, may be traded only on a contract market designated

under this section.

‘‘(2) In order to promote responsible economic or financial

innovation and fair competition, the Commission, on application by any person, after notice and public comment and opportunity for hearing, may prescribe rules and regulations to provide for the offer and sale of contracts for future delivery or options on such contracts to be conducted on a derivatives transaction execution facility.’’.

SEC. 111. DERIVATIVES TRANSACTION EXECUTION FACILITIES.

The Commodity Exchange Act (7 U.S.C. 1 et seq.) is amended

by inserting after section 5 (as amended by section 110(2)) the following:

‘‘SEC. 5a. DERIVATIVES TRANSACTION EXECUTION FACILITIES.

‘‘(a) IN GENERAL.—In lieu of compliance with the contract market designation requirements of sections 4(a) and 5, a board of trade

may elect to operate as a registered derivatives transaction execution

facility if the facility is—

‘‘(1) designated as a contract market and meets the requirements of this section; or

‘‘(2) registered as a derivatives transaction execution facility

under subsection (c) of this section.

‘‘(b) REQUIREMENTS FOR TRADING.—

‘‘(1) IN GENERAL.—A registered derivatives transaction execution facility under subsection (a) may trade any contract of

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tract) on or through the facility only by satisfying the requirements of this section.

‘‘(2) REQUIREMENTS FOR UNDERLYING COMMODITIES.—A

registered derivatives transaction execution facility may trade

any contract of sale of a commodity for future delivery (or option on such a contract) only if—

‘‘(A) the underlying commodity has a nearly inexhaustible deliverable supply;

‘‘(B) the underlying commodity has a deliverable supply that is sufficiently large that the contract is highly unlikely to be susceptible to the threat of manipulation;

‘‘(C) the underlying commodity has no cash market;

‘‘(D)(i) the contract is a security futures product, and

(ii) the registered derivatives transaction execution facility

is a national securities exchange registered under the Securities Exchange Act of 1934;

‘‘(E) the Commission determines, based on the market

characteristics, surveillance history, self-regulatory record,

and capacity of the facility that trading in the contract (or

option) is highly unlikely to be susceptible to the threat of

manipulation; or

‘‘(F) except as provided in section 5(e)(2), the underlying commodity is a commodity other than an agricultural

commodity enumerated in section 1a(4), and trading access

to the facility is limited to eligible commercial entities trading for their own account.

‘‘(3) ELIGIBLE TRADERS.—To trade on a registered derivatives transaction execution facility, a person shall—

‘‘(A) be an eligible contract participant; or

‘‘(B) be a person trading through a futures commission

merchant that—

‘‘(i) is registered with the Commission;

‘‘(ii) is a member of a futures self-regulatory organization or, if the person trades only security futures

products on the facility, a national securities association registered under section 15A(a) of the Securities

Exchange Act of 1934;

‘‘(iii) is a clearing member of a derivatives clearing

organization; and

‘‘(iv) has net capital of at least $20,000,000.

‘‘(4) TRADING BY CONTRACT MARKETS.—A board of trade

that is designated as a contract market shall, to the extent that

the contract market also operates a registered derivatives transaction execution facility—

‘‘(A) provide a physical location for the contract market

trading of the board of trade that is separate from trading

on the derivatives transaction execution facility of the board

of trade; or

‘‘(B) if the board of trade uses the same electronic trading system for trading on the contract market and derivatives transaction execution facility of the board of trade,

identify whether the electronic trading is taking place on

the contract market or the derivatives transaction execution

facility.

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‘‘(c) CRITERIA FOR REGISTRATION.— ‘‘(1) IN GENERAL.—To be registered as a registered derivatives transaction execution facility, the board of trade shall be

required to demonstrate to the Commission only that the board

of trade meets the criteria specified in subsection (b) and this

subsection.

‘‘(2) DETERRENCE OF ABUSES.—The board of trade shall establish and enforce trading and participation rules that will

deter abuses and has the capacity to detect, investigate, and enforce those rules, including means to—

‘‘(A) obtain information necessary to perform the functions required under this section; or

‘‘(B) use technological means to—

‘‘(i) provide market participants with impartial access to the market; and

‘‘(ii) capture information that may be used in establishing whether rule violations have occurred.

‘‘(3) TRADING PROCEDURES.—The board of trade shall establish and enforce rules or terms and conditions defining, or

specifications detailing, trading procedures to be used in entering and executing orders traded on the facilities of the board of

trade. The rules may authorize—

‘‘(A) transfer trades or office trades;

‘‘(B) an exchange of—

‘‘(i) futures in connection with a cash commodity

transaction;

‘‘(ii) futures for cash commodities; or

‘‘(iii) futures for swaps; or

‘‘(C) a futures commission merchant, acting as principal or agent, to enter into or confirm the execution of a

contract for the purchase or sale of a commodity for future

delivery if the contract is reported, recorded, or cleared in

accordance with the rules of the registered derivatives

transaction execution facility or a derivatives clearing organization.

‘‘(4) FINANCIAL INTEGRITY OF TRANSACTIONS.—The board of

trade shall establish and enforce rules or terms and conditions

providing for the financial integrity of transactions entered on

or through the facilities of the board of trade, and rules or

terms and conditions to ensure the financial integrity of any futures commission merchants and introducing brokers and the

protection of customer funds.

‘‘(d) CORE PRINCIPLES FOR REGISTERED DERIVATIVES TRANSACTION EXECUTION FACILITIES.—

‘‘(1) IN GENERAL.—To maintain the registration of a board

of trade as a derivatives transaction execution facility, a board

of trade shall comply with the core principles specified in this

subsection. The board of trade shall have reasonable discretion

in establishing the manner in which the board of trade complies with the core principles.

‘‘(2) COMPLIANCE WITH RULES.—The board of trade shall

monitor and enforce the rules of the facility, including any

terms and conditions of any contracts traded on or through the

facility and any limitations on access to the facility.

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‘‘(3) MONITORING OF TRADING.—The board of trade shall

monitor trading in the contracts of the facility to ensure orderly

trading in the contract and to maintain an orderly market

while providing any necessary trading information to the Commission to allow the Commission to discharge the responsibilities of the Commission under the Act.

‘‘(4) DISCLOSURE OF GENERAL INFORMATION.—The board of

trade shall disclose publicly and to the Commission information

concerning—

‘‘(A) contract terms and conditions;

‘‘(B) trading conventions, mechanisms, and practices;

‘‘(C) financial integrity protections; and

‘‘(D) other information relevant to participation in

trading on the facility.

‘‘(5) DAILY PUBLICATION OF TRADING INFORMATION.—The

board of trade shall make public daily information on settlement prices, volume, open interest, and opening and closing

ranges for contracts traded on the facility if the Commission determines that the contracts perform a significant price discovery

function for transactions in the cash market for the commodity

underlying the contracts.

‘‘(6) FITNESS STANDARDS.—The board of trade shall establish and enforce appropriate fitness standards for directors,

members of any disciplinary committee, members, and any

other persons with direct access to the facility, including any

parties affiliated with any of the persons described in this paragraph.

‘‘(7) CONFLICTS OF INTEREST.—The board of trade shall establish and enforce rules to minimize conflicts of interest in the

decision making process of the derivatives transaction execution

facility and establish a process for resolving such conflicts of interest.

‘‘(8) RECORDKEEPING.—The board of trade shall maintain

records of all activities related to the business of the derivatives

transaction execution facility in a form and manner acceptable

to the Commission for a period of 5 years.

‘‘(9) ANTITRUST CONSIDERATIONS.—Unless necessary or appropriate to achieve the purposes of this Act, the board of trade

shall endeavor to avoid—

‘‘(A) adopting any rules or taking any actions that result in any unreasonable restraint of trade; or

‘‘(B) imposing any material anticompetitive burden on

trading on the derivatives transaction execution facility.

‘‘(e) USE OF BROKER-DEALERS, DEPOSITORY INSTITUTIONS, AND

FARM CREDIT SYSTEM INSTITUTIONS AS INTERMEDIARIES.—

‘‘(1) IN GENERAL.—With respect to transactions other than

transactions in security futures products, a registered derivatives transaction execution facility may by rule allow a brokerdealer, 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

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‘‘(B) receive funds of customers to serve as margin or

security for the transactions.

‘‘(2) REQUIREMENTS.—The requirements referred to in paragraph (1) are that—

‘‘(A) the broker-dealer be in good standing with the Securities and Exchange Commission, or the depository institution or institution of the Farm Credit System be in good

standing with Federal bank regulatory agencies (including

the Farm Credit Administration), as applicable; and

‘‘(B) if the broker-dealer, depository institution, or institution of the Farm Credit System carries or holds customer

accounts or funds for transactions on the derivatives transaction execution facility for more than 1 business day, the

broker-dealer, depository institution, or institution of the

Farm Credit System is registered as a futures commission

merchant and is a member of a registered futures association.

‘‘(3) IMPLEMENTATION.—The Commission shall cooperate

and coordinate with the Securities and Exchange Commission,

the Secretary of the Treasury, and Federal banking regulatory

agencies (including the Farm Credit Administration) in adopting rules and taking any other appropriate action to facilitate

the implementation of this subsection.

‘‘(f) SEGREGATION OF CUSTOMER FUNDS.—Not later than 180

days after the date of the enactment of the Commodity Futures Modernization Act of 2000, consistent with regulations adopted by the

Commission, a registered derivatives transaction execution facility

may authorize a futures commission merchant to offer any customer

of the futures commission merchant that is an eligible contract participant the right to not segregate the customer funds of the customer that are carried with the futures commission merchant for

purposes of trading on or through the facilities of the registered derivatives transaction execution facility.

‘‘(g) ELECTION TO TRADE EXCLUDED AND EXEMPT COMMODITIES.—

‘‘(1) IN GENERAL.—Notwithstanding subsection (b)(2) of this

section, a board of trade that is or elects to become a registered

derivatives transaction execution facility may trade on the facility any agreements, contracts, or transactions involving excluded or exempt commodities other than securities, except contracts of sale for future delivery of exempt securities under section 3(a)(12) of the Securities Exchange Act of 1934 as in effect

on the date of enactment of the Futures Trading Act of 1982,

that are otherwise excluded from this Act under section 2(c),

2(d), or 2(g) of this Act, or exempt under section 2(h) of this Act.

‘‘(2) EXCLUSIVE JURISDICTION OF THE COMMISSION.—The

Commission shall have exclusive jurisdiction over agreements,

contracts, or transactions described in paragraph (1) to the extent that the agreements, contracts, or transactions are traded

on a derivatives transaction execution facility.’’.

SEC. 112. DERIVATIVES CLEARING.

(a) IN GENERAL.—Subtitle A of title IV of the Federal Deposit

Insurance Corporation Improvement Act of 1991 is amended—

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(1) by inserting before the section heading for section 401,

the following new heading:

‘‘CHAPTER 1—BILATERAL AND CLEARING

ORGANIZATION NETTING’’;

(2) in section 402, by striking ‘‘this subtitle’’ and inserting

‘‘this chapter’’; and

(3) by inserting after section 407, the following new chapter:

‘‘CHAPTER 2—MULTILATERAL CLEARING

ORGANIZATIONS

‘‘SEC. 408. DEFINITIONS.

For purposes of this chapter, the following definitions shall

apply:

‘‘(1) MULTILATERAL CLEARING ORGANIZATION.—The term

‘multilateral clearing organization’ means a system utilized by

more than 2 participants in which the bilateral credit exposures

of participants arising from the transactions cleared are effectively eliminated and replaced by a system of guarantees, insurance, or mutualized risk of loss.

‘‘(2) OVER-THE-COUNTER DERIVATIVE INSTRUMENT.—The

term ‘over-the-counter derivative instrument’ includes—

‘‘(A) any agreement, contract, or transaction, including

the terms and conditions incorporated by reference in any

such agreement, contract, or transaction, which is an interest rate swap, option, or forward agreement, including a

rate floor, rate cap, rate collar, cross-currency rate swap,

basis swap, and forward rate agreement; a same day-tomorrow, tomorrow-next, forward, or other foreign exchange

or precious metals agreement; a currency swap, option, or

forward agreement; an equity index or equity swap, option,

or forward agreement; a debt index or debt swap, option,

or forward agreement; a credit spread or credit swap, option, or forward agreement; a commodity index or commodity swap, option, or forward agreement; and a weather

swap, weather derivative, or weather option;

‘‘(B) any agreement, contract or transaction similar to

any other agreement, contract, or transaction referred to in

this clause that is presently, or in the future becomes, regularly entered into by parties that participate in swap transactions (including terms and conditions incorporated by

reference in the agreement) and that is a forward, swap, or

option on 1 or more occurrences of any event, rates, currencies, commodities, equity securities or other equity instruments, debt securities or other debt instruments, economic or other indices or measures of economic or other

risk or value;

‘‘(C) any agreement, contract, or transaction excluded

from the Commodity Exchange Act under section 2(c), 2(d),

2(f), or 2(g) of such Act, or exempted under section 2(h) or

4(c) of such Act; and

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‘‘(D) any option to enter into any, or any combination

of, agreements, contracts or transactions referred to in this

subparagraph.

‘‘(3) OTHER DEFINITIONS.—The terms ‘insured State nonmember bank’, ‘State member bank’, and ‘affiliate’ have the

same meanings as in section 3 of the Federal Deposit Insurance

Act.

‘‘SEC. 409. MULTILATERAL CLEARING ORGANIZATIONS.

‘‘(a) IN GENERAL.—Except with respect to clearing organizations

described in subsection (b), no person may operate a multilateral

clearing organization for over-the-counter derivative instruments, or

otherwise engage in activities that constitute such a multilateral

clearing organization unless the person is a national bank, a State

member bank, an insured State nonmember bank, an affiliate of a

national bank, a State member bank, or an insured State nonmember bank, or a corporation chartered under section 25A of the

Federal Reserve Act.

‘‘(b) CLEARING ORGANIZATIONS.—Subsection (a) shall not apply

to any clearing organization that—

‘‘(1) is registered as a clearing agency under the Securities

Exchange Act of 1934;

‘‘(2) is registered as a derivatives clearing organization

under the Commodity Exchange Act; or

‘‘(3) is supervised by a foreign financial regulator that the

Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Securities and Exchange Commission, or the Commodity Futures Trading Commission, as applicable, has determined satisfies appropriate standards.’’.

(b) RESOLUTION OF CLEARING BANKS.—The Federal Reserve Act

(12 U.S.C. 221 et seq.) is amended by inserting after section 9A the

following new section:

‘‘SEC. 9B. RESOLUTION OF CLEARING BANKS.

‘‘(a) CONSERVATORSHIP OR RECEIVERSHIP.—

‘‘(1) APPOINTMENT.—The Board may appoint a conservator

or receiver to take possession and control of any uninsured

State member bank which operates, or operates as, a multilateral clearing organization pursuant to section 409 of the Federal Deposit Insurance Corporation Improvement Act of 1991 to

the same extent and in the same manner as the Comptroller of

the Currency may appoint a conservator or receiver for a national bank.

‘‘(2) POWERS.—The conservator or receiver for an uninsured

State member bank referred to in paragraph (1) shall exercise

the same powers, functions, and duties, subject to the same limitations, as a conservator or receiver for a national bank.

‘‘(b) BOARD AUTHORITY.—The Board shall have the same authority with respect to any conservator or receiver appointed under

subsection (a), and the uninsured State member bank for which the

conservator or receiver has been appointed, as the Comptroller of the

Currency has with respect to a conservator or receiver for a national

bank and the national bank for which the conservator or receiver

has been appointed.

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‘‘(c) BANKRUPTCY PROCEEDINGS.—The Board (in the case of an

uninsured State member bank which operates, or operates as, such

a multilateral clearing organization) may direct a conservator or receiver appointed for the bank to file a petition pursuant to title 11,

United States Code, in which case, title 11, United States Code,

shall apply to the bank in lieu of otherwise applicable Federal or

State insolvency law.’’.

(c) TECHNICAL AND CONFORMING AMENDMENTS TO TITLE 11,

UNITED STATES CODE.—

(1) BANKRUPTCY CODE DEBTORS.—Section 109(b)(2) of title

11, United States Code, is amended by striking ‘‘; or’’ and inserting the following: ‘‘, except that an uninsured State member

bank, or a corporation organized under section 25A of the Federal Reserve Act, which operates, or operates as, a multilateral

clearing organization pursuant to section 409 of the Federal Deposit Insurance Corporation Improvement Act of 1991 may be

a debtor if a petition is filed at the direction of the Board of

Governors of the Federal Reserve System; or’’.

(2) CHAPTER 7 DEBTORS.—Section 109(d) of title 11, United

States Code, is amended to read as follows:

‘‘(d) Only a railroad, a person that may be a debtor under chapter 7 of this title (except a stockbroker or a commodity broker), and

an uninsured State member bank, or a corporation organized under

section 25A of the Federal Reserve Act, which operates, or operates

as, a multilateral clearing organization pursuant to section 409 of

the Federal Deposit Insurance Corporation Improvement Act of 1991

may be a debtor under chapter 11 of this title.’’.

(3) DEFINITION OF FINANCIAL INSTITUTION.—Section

101(22) of title 11, United States Code, is amended to read as

follows:

‘‘(22) the term ‘financial institution’—

‘‘(A) means—

‘‘(i) a Federal reserve bank or an entity (domestic

or foreign) that is a commercial or savings bank, industrial savings bank, savings and loan association,

trust company, or receiver or conservator for such entity and, when any such Federal reserve bank, receiver,

conservator, or entity is acting as agent or custodian

for a customer in connection with a securities contract,

as defined in section 741 of this title, the customer; or

‘‘(ii) in connection with a securities contract, as defined in section 741 of this title, an investment company registered under the Investment Company Act of

1940; and

‘‘(B) includes any person described in subparagraph (A)

which operates, or operates as, a multilateral clearing organization pursuant to section 409 of the Federal Deposit Insurance Corporation Improvement Act of 1991;’’.

(4) DEFINITION OF UNINSURED STATE MEMBER BANK.—Section 101 of title 11, United States Code, is amended by inserting after paragraph (54) the following new paragraph—

‘‘(54A) the term ‘uninsured State member bank’ means a State

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681

ance 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

‘‘§ 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.

‘‘§ 782. Selection of trustee

‘‘(a) IN GENERAL.—

‘‘(1) APPOINTMENT.—Notwithstanding any other provision

of this title, the conservator or receiver who files the petition

shall be the trustee under this chapter, unless the Board designates an alternative trustee.

‘‘(2) SUCCESSOR.—The Board may designate a successor

trustee if required.

‘‘(b) AUTHORITY OF TRUSTEE.—Whenever the Board appoints or

designates a trustee, chapter 3 and sections 704 and 705 of this title

shall apply to the Board in the same way and to the same extent

that they apply to a United States trustee.

‘‘§ 783. Additional powers of trustee

‘‘(a) DISTRIBUTION OF PROPERTY NOT OF THE ESTATE.—The

trustee under this subchapter has power to distribute property not

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of the estate, including distributions to customers that are mandated by subchapters III and IV of this chapter.

‘‘(b) DISPOSITION OF INSTITUTION.—The trustee under this subchapter may, after notice and a hearing—

‘‘(1) sell the clearing bank to a depository institution or consortium of depository institutions (which consortium may agree

on the allocation of the clearing bank among the consortium);

‘‘(2) merge the clearing bank with a depository institution;

‘‘(3) transfer contracts to the same extent as could a receiver

for a depository institution under paragraphs (9) and (10) of

section 11(e) of the Federal Deposit Insurance Act;

‘‘(4) transfer assets or liabilities to a depository institution;

‘‘(5) transfer assets and liabilities to a bridge bank as provided in paragraphs (1), (3)(A), (5), (6), of section 11(n) of the

Federal Deposit Insurance Act, paragraphs (9) through (13) of

such section, and subparagraphs (A) through (H) and subparagraph (K) of paragraph (4) of such section 11(n), except that—

‘‘(A) the bridge bank to which such assets or liabilities

are transferred shall be treated as a clearing bank for the

purpose of this subsection; and

‘‘(B) any references in any such provision of law to the

Federal Deposit Insurance Corporation shall be construed

to be references to the appointing agency and that references to deposit insurance shall be omitted.

‘‘(c) CERTAIN TRANSFERS INCLUDED.—Any reference in this section to transfers of liabilities includes a ratable transfer of liabilities

within a priority class.

‘‘§ 784. Right to be heard

‘‘The Board or a Federal reserve bank (in the case of a clearing

bank that is a member of that bank) may raise and may appear and

be heard on any issue in a case under this subchapter.’’.

(6) DEFINITIONS OF CLEARING ORGANIZATION, CONTRACT

MARKET, AND RELATED DEFINITIONS.— (A) Section 761(2) of title 11, United States Code, is

amended to read as follows:

‘‘(2) ‘clearing organization’ means a derivatives clearing organization registered under the Act;’’.

(B) Section 761(7) of title 11, United States Code, is

amended to read as follows:

‘‘(7) ‘contract market’ means a registered entity;’’.

(C) Section 761(8) of title 11, United States Code, is

amended to read as follows:

‘‘(8) ‘contract of sale’, ‘commodity’, ‘derivatives clearing organization’, ‘future delivery’, ‘board of trade’, ‘registered entity’,

and ‘futures commission merchant’ have the meanings assigned

to those terms in the Act;’’.

(d) CLERICAL AMENDMENT.—The table of sections for chapter 7

of title 11, United States Code, is amended by adding at the end

the following new items:

‘‘SUBCHAPTER V—CLEARING BANK LIQUIDATION

‘‘Sec.

‘‘781. Definitions.

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‘‘782. Selection of trustee.

‘‘783. Additional powers of trustee.

‘‘784. Right to be heard.’’.

(e) RESOLUTION OF EDGE ACT CORPORATIONS.—The 16th undesignated paragraph of section 25A of the Federal Reserve Act (12

U.S.C. 624) is amended to read as follows:

‘‘(16) APPOINTMENT OF RECEIVER OR CONSERVATOR.— ‘‘(A) IN GENERAL.—The Board may appoint a conservator or receiver for a corporation organized under the provisions of this section to the same extent and in the same

manner as the Comptroller of the Currency may appoint a

conservator or receiver for a national bank, and the conservator or receiver for such corporation shall exercise the

same powers, functions, and duties, subject to the same

limitations, as a conservator or receiver for a national

bank.

‘‘(B) EQUIVALENT AUTHORITY.—The Board shall have

the same authority with respect to any conservator or receiver appointed for a corporation organized under the provisions of this section under this paragraph and any such

corporation as the Comptroller of the Currency has with respect to a conservator or receiver of a national bank and

the national bank for which a conservator or receiver has

been appointed.

‘‘(C) TITLE 11 PETITIONS.—The Board may direct the

conservator or receiver of a corporation organized under the

provisions of this section to file a petition pursuant to title

11, United States Code, in which case, title 11, United

States Code, shall apply to the corporation in lieu of otherwise applicable Federal or State insolvency law.’’.

(f) DERIVATIVES CLEARING ORGANIZATIONS.—The Commodity

Exchange Act (7 U.S.C. 1 et seq.) is amended by inserting after section 5a, as added by section 111 of this Act, the following:

‘‘SEC. 5b. DERIVATIVES CLEARING ORGANIZATIONS.

‘‘(a) REGISTRATION REQUIREMENT.—It shall be unlawful for a

derivatives clearing organization, unless registered with the Commission, directly or indirectly to make use of the mails or any

means or instrumentality of interstate commerce to perform the

functions of a derivatives clearing organization described in section

1a(9) of this Act with respect to a contract of sale of a commodity

for future delivery (or option on such a contract) or option on a commodity, in each case unless the contract or option—

‘‘(1) is excluded from this Act by section 2(a)(1)(C)(i), 2(c),

2(d), 2(f), or 2(g) of this Act or title IV of the Commodity Futures Modernization Act of 2000, or exempted under section 2(h)

or 4(c) of this Act; or

‘‘(2) is a security futures product cleared by a clearing agency registered under the Securities Exchange Act of 1934.

‘‘(b) VOLUNTARY REGISTRATION.—A derivatives clearing organization that clears agreements, contracts, or transactions excluded

from this Act by section 2(c), 2(d), 2(f) or 2(g) of this Act or title IV

of the Commodity Futures Modernization Act of 2000, or exempted

under section 2(h) or 4(c) of this Act, or other over-the-counter derivative instruments (as defined in the Federal Deposit Insurance CorVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00687 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.006 pfrm03 PsN: HR1033
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poration Improvement Act of 1991) may register with the Commission as a derivatives clearing organization.

‘‘(c) REGISTRATION OF DERIVATIVES CLEARING ORGANIZATIONS.—

‘‘(1) APPLICATION.—A person desiring to register as a derivatives clearing organization shall submit to the Commission

an application in such form and containing such information

as the Commission may require for the purpose of making the

determinations required for approval under paragraph (2).

‘‘(2) CORE PRINCIPLES.—

‘‘(A) IN GENERAL.—To be registered and to maintain

registration as a derivatives clearing organization, an applicant shall demonstrate to the Commission that the applicant complies with the core principles specified in this

paragraph. The applicant shall have reasonable discretion

in establishing the manner in which it complies with the

core principles.

‘‘(B) FINANCIAL RESOURCES.—The applicant shall demonstrate that the applicant has adequate financial, operational, and managerial resources to discharge the responsibilities of a derivatives clearing organization.

‘‘(C) PARTICIPANT AND PRODUCT ELIGIBILITY.—The applicant shall establish—

‘‘(i) appropriate admission and continuing eligibility standards (including appropriate minimum financial requirements) for members of and participants

in the organization; and

‘‘(ii) appropriate standards for determining eligibility of agreements, contracts, or transactions submitted to the applicant.

‘‘(D) RISK MANAGEMENT.—The applicant shall have the

ability to manage the risks associated with discharging the

responsibilities of a derivatives clearing organization

through the use of appropriate tools and procedures.

‘‘(E) SETTLEMENT PROCEDURES.—The applicant shall

have the ability to—

‘‘(i) complete settlements on a timely basis under

varying circumstances;

‘‘(ii) maintain an adequate record of the flow of

funds associated with each transaction that the applicant clears; and

‘‘(iii) comply with the terms and conditions of any

permitted netting or offset arrangements with other

clearing organizations.

‘‘(F) TREATMENT OF FUNDS.—The applicant shall have

standards and procedures designed to protect and ensure

the safety of member and participant funds.

‘‘(G) DEFAULT RULES AND PROCEDURES.—The applicant

shall have rules and procedures designed to allow for efficient, fair, and safe management of events when members

or participants become insolvent or otherwise default on

their obligations to the derivatives clearing organization.

‘‘(H) RULE ENFORCEMENT.—The applicant shall—

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‘‘(i) maintain adequate arrangements and resources for the effective monitoring and enforcement of

compliance with rules of the applicant and for resolution of disputes; and

‘‘(ii) have the authority and ability to discipline,

limit, suspend, or terminate a member’s or participant’s activities for violations of rules of the applicant.

‘‘(I) SYSTEM SAFEGUARDS.—The applicant shall demonstrate that the applicant—

‘‘(i) has established and will maintain a program

of oversight and risk analysis to ensure that the automated systems of the applicant function properly and

have adequate capacity and security; and

‘‘(ii) has established and will maintain emergency

procedures and a plan for disaster recovery, and will

periodically test backup facilities sufficient to ensure

daily processing, clearing, and settlement of transactions.

‘‘(J) REPORTING.—The applicant shall provide to the

Commission all information necessary for the Commission

to conduct the oversight function of the applicant with respect to the activities of the derivatives clearing organization.

‘‘(K) RECORDKEEPING.—The applicant shall maintain

records of all activities related to the business of the applicant as a derivatives clearing organization in a form and

manner acceptable to the Commission for a period of 5

years.

‘‘(L) PUBLIC INFORMATION.—The applicant shall make

information concerning the rules and operating procedures

governing the clearing and settlement systems (including

default procedures) available to market participants.

‘‘(M) INFORMATION SHARING.—The applicant shall—

‘‘(i) enter into and abide by the terms of all appropriate and applicable domestic and international information-sharing agreements; and

‘‘(ii) use relevant information obtained from the

agreements in carrying out the clearing organization’s

risk management program.

‘‘(N) ANTITRUST CONSIDERATIONS.—Unless appropriate

to achieve the purposes of this Act, the derivatives clearing

organization shall avoid—

‘‘(i) adopting any rule or taking any action that results in any unreasonable restraint of trade; or

‘‘(ii) imposing any material anticompetitive burden

on trading on the contract market.

‘‘(3) ORDERS CONCERNING COMPETITION.—A derivatives

clearing organization may request the Commission to issue an

order concerning whether a rule or practice of the applicant is

the least anticompetitive means of achieving the objectives, purposes, and policies of this Act.

‘‘(d) EXISTING DERIVATIVES CLEARING ORGANIZATIONS.—A derivatives clearing organization shall be deemed to be registered

under this section to the extent that the derivatives clearing organiVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00689 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.006 pfrm03 PsN: HR1033
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zation clears agreements, contracts, or transactions for a board of

trade that has been designated by the Commission as a contract

market for such agreements, contracts, or transactions before the

date of enactment of this section.

‘‘(e) APPOINTMENT OF TRUSTEE.— ‘‘(1) IN GENERAL.—If a proceeding under section 5e results

in the suspension or revocation of the registration of a derivatives clearing organization, or if a derivatives clearing organization withdraws from registration, the Commission, on notice

to the derivatives clearing organization, may apply to the appropriate United States district court where the derivatives

clearing organization is located for the appointment of a trustee.

‘‘(2) ASSUMPTION OF JURISDICTION.—If the Commission applies for appointment of a trustee under paragraph (1)—

‘‘(A) the court may take exclusive jurisdiction over the

derivatives clearing organization and the records and assets of the derivatives clearing organization, wherever located; and

‘‘(B) if the court takes jurisdiction under subparagraph

(A), the court shall appoint the Commission, or a person

designated by the Commission, as trustee with power to

take possession and continue to operate or terminate the operations of the derivatives clearing organization in an orderly manner for the protection of participants, subject to

such terms and conditions as the court may prescribe.

‘‘(f) LINKING OF REGULATED CLEARING FACILITIES.— ‘‘(1) IN GENERAL.—The Commission shall facilitate the linking or coordination of derivatives clearing organizations registered under this Act with other regulated clearance facilities

for the coordinated settlement of cleared transactions.

‘‘(2) COORDINATION.—In carrying out paragraph (1), the

Commission shall coordinate with the Federal banking agencies

and the Securities and Exchange Commission.’’.

SEC. 113. COMMON PROVISIONS APPLICABLE TO REGISTERED ENTITIES.

The Commodity Exchange Act (7 U.S.C. 1 et seq.) is amended

by inserting after section 5b (as added by section 112(f)) the following:

‘‘SEC. 5c. COMMON PROVISIONS APPLICABLE TO REGISTERED ENTITIES.

‘‘(a) ACCEPTABLE BUSINESS PRACTICES UNDER CORE PRINCIPLES.—

‘‘(1) IN GENERAL.—Consistent with the purposes of this Act,

the Commission may issue interpretations, or approve interpretations submitted to the Commission, of sections 5(d), 5a(d),

and 5b(d)(2) to describe what would constitute an acceptable

business practice under such sections.

‘‘(2) EFFECT OF INTERPRETATION.—An interpretation issued

under paragraph (1) shall not provide the exclusive means for

complying with such sections.

‘‘(b) DELEGATION OF FUNCTIONS UNDER CORE PRINCIPLES.—

‘‘(1) IN GENERAL.—A contract market or derivatives transaction execution facility may comply with any applicable core

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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—

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‘‘(A) notify the registered entity in writing of the determination; and

‘‘(B) afford the registered entity an opportunity to make

appropriate changes to bring the registered entity into compliance with the core principles.

‘‘(2) FAILURE TO MAKE CHANGES.—If, not later than 30 days

after receiving a notification under paragraph (1), a registered

entity fails to make changes that, in the opinion of the Commission, are necessary to comply with the core principles, the Commission may take further action in accordance with this Act.

‘‘(e) RESERVATION OF EMERGENCY AUTHORITY.—Nothing in this

section shall limit or in any way affect the emergency powers of the

Commission provided in section 8a(9).’’.

SEC. 114. EXEMPT BOARDS OF TRADE.

The Commodity Exchange Act (7 U.S.C. 1 et seq.) is amended

by inserting after section 5c (as added by section 113) the following:

‘‘SEC. 5d. EXEMPT BOARDS OF TRADE.

‘‘(a) ELECTION TO REGISTER WITH THE COMMISSION.—A board

of trade that meets the requirements of subsection (b) of this section

may operate as an exempt board of trade on receipt from the board

of trade of a notice, provided in such manner as the Commission

may by rule or regulation prescribe, that the board of trade elects

to operate as an exempt board of trade. Except as otherwise provided in this section, no provision of this Act (other than subparagraphs (C) and (D) of section 2(a)(1) and section 12(e)(2)(B)) shall

apply with respect to a contract of sale of a commodity for future

delivery (or option on such a contract) traded on or through the facilities of an exempt board of trade.

‘‘(b) CRITERIA FOR EXEMPTION.—To qualify for an exemption

under subsection (a), a board of trade shall limit trading on or

through the facilities of the board of trade to contracts of sale of a

commodity for future delivery (or options on such contracts or on a

commodity)—

‘‘(1) for which the underlying commodity has—

‘‘(A) a nearly inexhaustible deliverable supply;

‘‘(B) a deliverable supply that is sufficiently large, and

a cash market sufficiently liquid, to render any contract

traded on the commodity highly unlikely to be susceptible

to the threat of manipulation; or

‘‘(C) no cash market;

‘‘(2) that are entered into only between persons that are eligible contract participants at the time at which the persons

enter into the contract; and

‘‘(3) that are not contracts of sale (or options on such a contract or on a commodity) for future delivery of any security, including any group or index of securities or any interest in, or

based on the value of, any security or any group or index of securities.

‘‘(c) ANTIMANIPULATION REQUIREMENTS.—A party to a contract

of sale of a commodity for future delivery (or option on such a contract or on a commodity) that is traded on an exempt board of trade

shall be subject to sections 4b, 4c(b), 4o, 6(c), and 9(a)(2), and the

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Commission shall enforce those provisions with respect to any such

trading.

‘‘(d) PRICE DISCOVERY.—If the Commission finds that an exempt board of trade is a significant source of price discovery for

transactions in the cash market for the commodity underlying any

contract, agreement, or transaction traded on or through the facilities of the board of trade, the board of trade shall disseminate publicly on a daily basis trading volume, opening and closing price

ranges, open interest, and other trading data as appropriate to the

market.

‘‘(e) JURISDICTION.—The Commission shall have exclusive jurisdiction over any account, agreement, contract, or transaction involving a contract of sale of a commodity for future delivery, or option

on such a contract or on a commodity, to the extent that the account,

agreement, contract, or transaction is traded on an exempt board of

trade.

‘‘(f) SUBSIDIARIES.—A board of trade that is designated as a

contract market or registered as a derivatives transaction execution

facility may operate an exempt board of trade by establishing a separate subsidiary or other legal entity and otherwise satisfying the

requirements of this section.

‘‘(g) An exempt board of trade that meets the requirements of

subsection (b) shall not represent to any person that the board of

trade is registered with, or designated, recognized, licensed, or approved by the Commission.’’.

SEC. 115. SUSPENSION OR REVOCATION OF DESIGNATION AS CONTRACT MARKET.

Section 5e of the Commodity Exchange Act (7 U.S.C. 7b) (as redesignated by section 20(1)) is amended to read as follows:

‘‘SEC. 5e. SUSPENSION OR REVOCATION OF DESIGNATION AS REGISTERED ENTITY.

‘‘The failure of a registered entity to comply with any provision

of this Act, or any regulation or order of the Commission under this

Act, shall be cause for the suspension of the registered entity for a

period not to exceed 180 days, or revocation of designation as a registered entity in accordance with the procedures and subject to the

judicial review provided in section 6(b).’’.

SEC. 116. AUTHORIZATION OF APPROPRIATIONS.

Section 12(d) of the Commodity Exchange Act (7 U.S.C. 16(d))

is amended by striking ‘‘2000’’ and inserting ‘‘2005’’.

SEC. 117. PREEMPTION.

Section 12 of the Commodity Exchange Act (7 U.S.C. 16(e)) is

amended by striking subsection (e) and inserting the following:

‘‘(e) RELATION TO OTHER LAW, DEPARTMENTS, OR AGENCIES.—

‘‘(1) Nothing in this Act shall supersede or preempt—

‘‘(A) criminal prosecution under any Federal criminal

statute;

‘‘(B) the application of any Federal or State statute (except as provided in paragraph (2)), including any rule or

regulation thereunder, to any transaction in or involving

any commodity, product, right, service, or interest—

‘‘(i) that is not conducted on or subject to the rules

of a registered entity or exempt board of trade;

690

‘‘(ii) (except as otherwise specified by the Commission by rule or regulation) that is not conducted on or

subject to the rules of any board of trade, exchange, or

market located outside the United States, its territories

or possessions; or

‘‘(iii) that is not subject to regulation by the Commission under section 4c or 19; or

‘‘(C) the application of any Federal or State statute, including any rule or regulation thereunder, to any person required to be registered or designated under this Act who

shall fail or refuse to obtain such registration or designation.

‘‘(2) This Act shall supersede and preempt the application

of any State or local law that prohibits or regulates gaming or

the operation of bucket shops (other than antifraud provisions

of general applicability) in the case of—

‘‘(A) an electronic trading facility excluded under section 2(e) of this Act;

‘‘(B) an agreement, contract, or transaction that is excluded from this Act under section 2(c), 2(d), 2(f), or 2(g)

of this Act or title IV of the Commodity Futures Modernization Act of 2000, or exempted under section 2(h) or 4(c) of

this Act (regardless of whether any such agreement, contract, or transaction is otherwise subject to this Act).’’.

SEC. 118. PREDISPUTE RESOLUTION AGREEMENTS FOR INSTITUTIONAL CUSTOMERS.

Section 14 of the Commodity Exchange Act (7 U.S.C. 18) is

amended by striking subsection (g) and inserting the following:

‘‘(g) PREDISPUTE RESOLUTION AGREEMENTS FOR INSTITUTIONAL

CUSTOMERS.—Nothing in this section prohibits a registered futures

commission merchant from requiring a customer that is an eligible

contract participant, as a condition to the commission merchant’s

conducting a transaction for the customer, to enter into an agreement waiving the right to file a claim under this section.’’.

SEC. 119. CONSIDERATION OF COSTS AND BENEFITS AND ANTITRUST

LAWS.

Section 15 of the Commodity Exchange Act (7 U.S.C. 19) is

amended by striking ‘‘SEC. 15. The Commission’’ and inserting the

following:

‘‘SEC. 15. CONSIDERATION OF COSTS AND BENEFITS AND ANTITRUST

LAWS.

‘‘(a) COSTS AND BENEFITS.—

‘‘(1) IN GENERAL.—Before promulgating a regulation under

this Act or issuing an order (except as provided in paragraph

(3)), the Commission shall consider the costs and benefits of the

action of the Commission.

‘‘(2) CONSIDERATIONS.—The costs and benefits of the proposed Commission action shall be evaluated in light of—

‘‘(A) considerations of protection of market participants

and the public;

‘‘(B) considerations of the efficiency, competitiveness,

and financial integrity of futures markets;

‘‘(C) considerations of price discovery;

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‘‘(D) considerations of sound risk management practices; and

‘‘(E) other public interest considerations.

‘‘(3) APPLICABILITY.—This subsection does not apply to the

following actions of the Commission:

‘‘(A) An order that initiates, is part of, or is the result

of an adjudicatory or investigative process of the Commission.

‘‘(B) An emergency action.

‘‘(C) A finding of fact regarding compliance with a requirement of the Commission.

‘‘(b) ANTITRUST LAWS.—The Commission’’.

SEC. 120. CONTRACT ENFORCEMENT BETWEEN ELIGIBLE

COUNTERPARTIES.

Section 22(a) of the Commodity Exchange Act (7 U.S.C. 25(a))

is amended by adding at the end the following:

‘‘(4) CONTRACT ENFORCEMENT BETWEEN ELIGIBLE

COUNTERPARTIES.—No agreement, contract, or transaction between eligible contract participants or persons reasonably believed to be eligible contract participants, and no hybrid instrument sold to any investor, shall be void, voidable, or unenforceable, and no such party shall be entitled to rescind, or recover

any payment made with respect to, such an agreement, contract,

transaction, or instrument under this section or any other provision of Federal or State law, based solely on the failure of the

agreement, contract, transaction, or instrument to comply with

the terms or conditions of an exemption or exclusion from any

provision of this Act or regulations of the Commission.’’.

SEC. 121. SPECIAL PROCEDURES TO ENCOURAGE AND FACILITATE

BONA FIDE HEDGING BY AGRICULTURAL PRODUCERS.

The Commodity Exchange Act, as otherwise amended by this

Act, is amended by inserting after section 4o the following:

‘‘SEC. 4p. SPECIAL PROCEDURES TO ENCOURAGE AND FACILITATE

BONA FIDE HEDGING BY AGRICULTURAL PRODUCERS.

‘‘(a) AUTHORITY.—The Commission shall consider issuing rules

or orders which—

‘‘(1) prescribe procedures under which each contract market

is to provide for orderly delivery, including temporary storage

costs, of any agricultural commodity enumerated in section

1a(4) which is the subject of a contract for purchase or sale for

future delivery;

‘‘(2) increase the ease with which domestic agricultural producers may participate in contract markets, including by addressing cost and margin requirements, so as to better enable

the producers to hedge price risk associated with their production;

‘‘(3) provide flexibility in the minimum quantities of such

agricultural commodities that may be the subject of a contract

for purchase or sale for future delivery that is traded on a contract market, to better allow domestic agricultural producers to

hedge such price risk; and

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‘‘(4) encourage contract markets to provide information and

otherwise facilitate the participation of domestic agricultural

producers in contract markets.

‘‘(b) REPORT.—Within 1 year after the date of enactment of this

section, the Commission shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report on the steps

it has taken to implement this section and on the activities of contract markets pursuant to this section.’’.

SEC. 122. RULE OF CONSTRUCTION.

Except as expressly provided in this Act or an amendment made

by this Act, nothing in this Act or an amendment made by this Act

supersedes, affects, or otherwise limits or expands the scope and applicability of laws governing the Securities and Exchange Commission.

SEC. 123. TECHNICAL AND CONFORMING AMENDMENTS.

(a) COMMODITY EXCHANGE ACT.—

(1) Section 1a of the Commodity Exchange Act (7 U.S.C.

1a) (as amended by section 101) is amended—

(A) in paragraphs (5), (6), (16), (17), (20), and (23), by

inserting ‘‘or derivatives transaction execution facility’’ after

‘‘contract market’’ each place it appears; and

(B) in paragraph (24)—

(i) in the paragraph heading, by striking ‘‘CON- TRACT MARKET’’ and inserting ‘‘REGISTERED ENTITY’’;

(ii) by striking ‘‘contract market’’ each place it appears and inserting ‘‘registered entity’’; and

(iii) by adding at the end the following:

‘‘A participant in an alternative trading system that is designated as a contract market pursuant to section 5f is deemed

a member of the contract market for purposes of transactions in

security futures products through the contract market.’’.

(2) Section 2 of the Commodity Exchange Act (7 U.S.C. 2,

2a, 4, 4a, 3) is amended—

(A) by striking ‘‘SEC. 2. (a)(1)(A)(i) The’’ and inserting

the following:

‘‘SEC. 2. JURISDICTION OF COMMISSION; LIABILITY OF PRINCIPAL

FOR ACT OF AGENT; COMMODITY FUTURES TRADING COMMISSION; TRANSACTION IN INTERSTATE COMMERCE.

‘‘(a) JURISDICTION OF COMMISSION; COMMODITY FUTURES

TRADING COMMISSION.—

‘‘(1) JURISDICTION OF COMMISSION.—

‘‘(A) IN GENERAL.—The’’; and

(B) in subsection (a)(1)—

(i) in subparagraph (A) (as amended by subparagraph (A) of this paragraph)—

(II) by striking ‘‘subparagraph (B) of this subparagraph’’ and inserting ‘‘subparagraphs (C) and

(D) of this paragraph and subsections (c) through

(i) of this section’’;

(III) by striking ‘‘contract market designated

pursuant to section 5 of this Act’’ and inserting

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action execution facility registered pursuant to section 5 or 5a’’;

(IV) by striking clause (ii); and

(V) in clause (iii), by striking ‘‘(iii) The’’ and

inserting the following:

‘‘(B) LIABILITY OF PRINCIPAL FOR ACT OF AGENT.—The’’;

and

(ii) in subparagraph (B)—

(I) by striking ‘‘(B)’’ and inserting ‘‘(C)’’;

(II) in clause (v)—

(aa) by striking ‘‘section 3 of the Securities

Act of 1933’’; and

(bb) by inserting ‘‘or subparagraph (D)’’

after ‘‘subparagraph’’; and

(III) by moving clauses (i) through (v) 4 ems to

the right;

(C) in subsection (a)(7), by striking ‘‘contract market’’

and inserting ‘‘registered entity’’;

(D) in subsection (a)(8)(B)(ii)—

(i) in the first sentence, by striking ‘‘designation as

a contract market’’ and inserting ‘‘designation or registration as a contract market or derivatives transaction execution facility’’;

(ii) in the second sentence, by striking ‘‘designate a

board of trade as a contract market’’ and inserting

‘‘designate or register a board of trade as a contract

market or derivatives transaction execution facility’’;

and

(iii) in the fourth sentence, by striking ‘‘designating, or refusing, suspending, or revoking the designation of, a board of trade as a contract market involving transactions for future delivery referred to in

this clause or in considering possible emergency action

under section 8a(9) of this Act’’ and inserting ‘‘designating, registering, or refusing, suspending, or revoking the designation or registration of, a board of trade

as a contract market or derivatives transaction execution facility involving transactions for future delivery

referred to in this clause or in considering any possible

action under this Act (including without limitation

emergency action under section 8a(9))’’, and by striking

‘‘designation, suspension, revocation, or emergency action’’ and inserting ‘‘designation, registration, suspension, revocation, or action’’; and

(E) in subsection (a), by moving paragraphs (2)

through (9) 2 ems to the right.

(3) Section 4 of the Commodity Exchange Act (7 U.S.C. 6)

is amended—

(A) in subsection (a)—

(i) in paragraph (1), by striking ‘‘designated by the

Commission as a ‘contract market’ for’’ and inserting

‘‘designated or registered by the Commission as a contract market or derivatives transaction execution facility for’’;

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(ii) in paragraph (2), by striking ‘‘member of such’’;

and

(iii) in paragraph (3), by inserting ‘‘or derivatives

transaction execution facility’’ after ‘‘contract market’’;

and

(B) in subsection (c)—

(i) in paragraph (1)—

(I) by striking ‘‘designated as a contract market’’ and inserting ‘‘designated or registered as a

contract market or derivatives transaction execution facility’’; and

(II) by striking ‘‘section 2(a)(1)(B)’’ and inserting ‘‘subparagraphs (C)(ii) and (D) of section

2(a)(1), except that the Commission and the Securities and Exchange Commission may by rule, regulation, or order jointly exclude any agreement, contract, or transaction from section 2(a)(1)(D)’’; and

(ii) in paragraph (2)(B)(ii), by inserting ‘‘or derivatives transaction execution facility’’ after ‘‘contract market’’.

(4) Section 4a of the Commodity Exchange Act (7 U.S.C.

6a) is amended—

(A) in subsection (a)—

(i) in the first sentence, by inserting ‘‘or derivatives

transaction execution facilities’’ after ‘‘contract markets’’; and

(ii) in the second sentence, by inserting ‘‘or derivatives transaction execution facility’’ after ‘‘contract market’’;

(B) in subsection (b)—

(i) in paragraph (1), by inserting ‘‘, or derivatives

transaction execution facility or facilities,’’ after ‘‘markets’’; and

(ii) in paragraph (2), by inserting ‘‘or derivatives

transaction execution facility’’ after ‘‘contract market’’;

and

(C) in subsection (e)—

(i) by striking ‘‘contract market or’’ each place it

appears and inserting ‘‘contract market, derivatives

transaction execution facility, or’’;

(ii) by striking ‘‘licensed or designated’’ each place

it appears and inserting ‘‘licensed, designated, or registered’’; and

(iii) by striking ‘‘contract market, or’’ and inserting

‘‘contract market or derivatives transaction execution

facility, or’’.

(5) Section 4b(a) of the Commodity Exchange Act (7 U.S.C.

6b(a)) is amended by striking ‘‘contract market’’ each place it

appears and inserting ‘‘registered entity’’.

(6) Sections 4c(g), 4d, 4e, and 4f of the Commodity Exchange Act (7 U.S.C. 6c(g), 6d, 6e, 6f) are amended by inserting

‘‘or derivatives transaction execution facility’’ after ‘‘contract

market’’ each place it appears.

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(7) Section 4g of the Commodity Exchange Act (7 U.S.C. 6g)

is amended—

(A) in subsection (b), by striking ‘‘clearinghouse and

contract market’’ and inserting ‘‘registered entity’’; and

(B) in subsection (f), by striking ‘‘clearinghouses, contract markets, and exchanges’’ and inserting ‘‘registered entities’’.

(8) Section 4h of the Commodity Exchange Act (7 U.S.C.

6h) is amended by striking ‘‘contract market’’ each place it appears and inserting ‘‘registered entity’’.

(9) Section 4i of the Commodity Exchange Act (7 U.S.C. 6i)

is amended in the first sentence by inserting ‘‘or derivatives

transaction execution facility’’ after ‘‘contract market’’.

(10) Section 4l of the Commodity Exchange Act (7 U.S.C.

6l) is amended by inserting ‘‘or derivatives transaction execution facilities’’ after ‘‘contract markets’’ each place it appears.

(11) Section 4p of the Commodity Exchange Act (7 U.S.C.

6p) is amended—

(A) in the third sentence of subsection (a), by striking

‘‘Act or contract markets’’ and inserting ‘‘Act, contract markets, or derivatives transaction execution facilities’’; and

(B) in subsection (b), by inserting ‘‘derivatives transaction execution facility,’’ after ‘‘contract market,’’.

(12) Section 6 of the Commodity Exchange Act (7 U.S.C. 8,

9, 9a, 9b, 13b, 15) is amended—

(A) in subsection (a)—

(i) in the first sentence—

(I) by striking ‘‘board of trade desiring to be

designated a ‘contract market’ shall make application to the Commission for such designation’’ and

inserting ‘‘person desiring to be designated or registered as a contract market or derivatives transaction execution facility shall make application to

the Commission for the designation or registration’’;

(II) by striking ‘‘above conditions’’ and inserting ‘‘conditions set forth in this Act’’; and

(III) by striking ‘‘above requirements’’ and inserting ‘‘the requirements of this Act’’;

(ii) in the second sentence, by striking ‘‘designation

as a contract market within one year’’ and inserting

‘‘designation or registration as a contract market or derivatives transaction execution facility within 180

days’’;

(iii) in the third sentence—

(I) by striking ‘‘board of trade’’ and inserting

‘‘person’’; and

(II) by striking ‘‘one-year period’’ and inserting

‘‘180-day period’’; and

(iv) in the last sentence, by striking ‘‘designate as

a ‘contract market’ any board of trade that has made

application therefor, such board of trade’’ and inserting

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696

tives transaction execution facility any person that has

made application therefor, the person’’;

(B) in subsection (b)—

(i) in the first sentence—

(I) by striking ‘‘designation of any board of

trade as a ‘contract market’ upon’’ and inserting

‘‘designation or registration of any contract market

or derivatives transaction execution facility on’’;

(II) by striking ‘‘board of trade’’ each place it

appears and inserting ‘‘contract market or derivatives transaction execution facility’’; and

(III) by striking ‘‘designation as set forth in

section 5 of this Act’’ and inserting ‘‘designation or

registration as set forth in sections 5 through 5b or

section 5f’’;

(ii) in the second sentence—

(I) by striking ‘‘board of trade’’ the first place

it appears and inserting ‘‘contract market or derivatives transaction execution facility’’; and

(II) by striking ‘‘board of trade’’ the second and

third places it appears and inserting ‘‘person’’; and

(iii) in the last sentence, by striking ‘‘board of

trade’’ each place it appears and inserting ‘‘person’’;

(C) in subsection (c)—

(i) by striking ‘‘contract market’’ each place it appears and inserting ‘‘registered entity’’;

(ii) by striking ‘‘contract markets’’ each place it appears and inserting ‘‘registered entities’’; and

(iii) by striking ‘‘trading privileges’’ each place it

appears and inserting ‘‘privileges’’;

(D) in subsection (d), by striking ‘‘contract market’’

each place it appears and inserting ‘‘registered entity’’; and

(E) in subsection (e), by striking ‘‘trading on all contract markets’’ each place it appears and inserting ‘‘the

privileges of all registered entities’’.

(13) Section 6a of the Commodity Exchange Act (7 U.S.C.

10a) is amended—

(A) in the first sentence of subsection (a), by striking

‘‘designated as a ‘contract market’ shall’’ and inserting

‘‘designated or registered as a contract market or a derivatives transaction execution facility’’; and

(B) in subsection (b), by striking ‘‘designated as a contract market’’ and inserting ‘‘designated or registered as a

contract market or a derivatives transaction execution facility’’.

(14) Section 6b of the Commodity Exchange Act (7 U.S.C.

13a) is amended—

(A) by striking ‘‘contract market’’ each place it appears

and inserting ‘‘registered entity’’;

(B) in the first sentence, by striking ‘‘designation as set

forth in section 5 of this Act’’ and inserting ‘‘designation or

registration as set forth in sections 5 through 5c’’; and

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(C) in the last sentence, by striking ‘‘the contract market’s ability’’ and inserting ‘‘the ability of the registered entity’’.

(15) Section 6c(a) of the Commodity Exchange Act (7 U.S.C.

13a–1(a)) by striking ‘‘contract market’’ and inserting ‘‘registered entity’’.

(16) Section 6d(1) of the Commodity Exchange Act (7

U.S.C. 13a–2(1)) is amended by inserting ‘‘derivatives transaction execution facility,’’ after ‘‘contract market,’’.

(17) Section 7 of the Commodity Exchange Act (7 U.S.C.

11) is amended—

(A) in the first sentence—

(i) by striking ‘‘board of trade’’ and inserting ‘‘person’’;

(ii) by inserting ‘‘or registered’’ after ‘‘designated’’;

(iii) by inserting ‘‘or registration’’ after ‘‘designation’’ each place it appears; and

(iv) by striking ‘‘contract market’’ each place it appears and inserting ‘‘registered entity’’;

(B) in the second sentence—

(i) by striking ‘‘designation of such board of trade

as a contract market’’ and inserting ‘‘designation or

registration of the registered entity’’; and

(ii) by striking ‘‘contract markets’’ and inserting

‘‘registered entities’’; and

(C) in the last sentence—

(i) by striking ‘‘board of trade’’ and inserting ‘‘person’’; and

(ii) by striking ‘‘designated again a contract market’’ and inserting ‘‘designated or registered again a

registered entity’’.

(18) Section 8(c) of the Commodity Exchange Act (7 U.S.C.

12(c)) is amended in the first sentence by striking ‘‘board of

trade’’ and inserting ‘‘registered entity’’.

(19) Section 8a of the Commodity Exchange Act (7 U.S.C.

12a) is amended—

(A) by striking ‘‘contract market’’ each place it appears

and inserting ‘‘registered entity’’; and

(B) in paragraph (2)(F), by striking ‘‘trading privileges’’

and inserting ‘‘privileges’’.

(20) Sections 8b and 8c(e) of the Commodity Exchange Act

(7 U.S.C. 12b, 12c(e)) are amended by striking ‘‘contract market’’ each place it appears and inserting ‘‘registered entity’’.

(21) Section 8e of the Commodity Exchange Act (7 U.S.C.

12e) is repealed.

(22) Section 9 of the Commodity Exchange Act (7 U.S.C.

13) is amended by striking ‘‘contract market’’ each place it appears and inserting ‘‘registered entity’’.

(23) Section 14 of the Commodity Exchange Act (7 U.S.C.

18) is amended—

(A) in subsection (a)(1)(B), by striking ‘‘contract market’’ and inserting ‘‘registered entity’’; and

(B) in subsection (f), by striking ‘‘contract markets’’ and

inserting ‘‘registered entities’’.

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(24) Section 17 of the Commodity Exchange Act (7 U.S.C.

21) is amended by striking ‘‘contract market’’ each place it appears and inserting ‘‘registered entity’’.

(25) Section 22 of the Commodity Exchange Act (7 U.S.C.

25) is amended—

(A) in subsection (a)—

(i) in paragraph (1)—

(I) by striking ‘‘contract market, clearing organization of a contract market, licensed board of

trade,’’ and inserting ‘‘registered entity’’; and

(II) in subparagraph (C)(i), by striking ‘‘contract market’’ and inserting ‘‘registered entity’’;

(ii) in paragraph (2), by striking ‘‘sections 5a(11),’’

and inserting ‘‘sections 5(d)(13), 5b(b)(1)(E),’’; and

(iii) in paragraph (3), by striking ‘‘contract market’’

and inserting ‘‘registered entity’’; and

(B) in subsection (b)—

(i) in paragraph (1)—

(I) by striking ‘‘contract market or clearing organization of a contract market’’ and inserting

‘‘registered entity’’;

(II) by striking ‘‘section 5a(8) and section 5a(9)

of this Act’’ and inserting ‘‘sections 5 through 5c’’;

(III) by striking ‘‘contract market, clearing organization of a contract market, or licensed board

of trade’’ and inserting ‘‘registered entity’’; and

(IV) by striking ‘‘contract market or licensed

board of trade’’ and inserting ‘‘registered entity’’;

(ii) in paragraph (3)—

(I) by striking ‘‘a contract market, clearing organization, licensed board of trade,’’ and inserting

‘‘registered entity’’; and

(II) by striking ‘‘contract market, licensed

board of trade’’ and inserting ‘‘registered entity’’;

(iii) in paragraph (4), by striking ‘‘contract market,

licensed board of trade, clearing organization,’’ and inserting ‘‘registered entity’’; and

(iv) in paragraph (5), by striking ‘‘contract market,

licensed board of trade, clearing organization,’’ and inserting ‘‘registered entity’’.

(b) FEDERAL DEPOSIT INSURANCE CORPORATION IMPROVEMENT

ACT OF 1991.—Section 402(2) of the Federal Deposit Insurance Corporation Improvement Act of 1991 (12 U.S.C. 4402(2)) is amended

by striking subparagraph (B) and inserting the following:

‘‘(B) that is registered as a derivatives clearing organization under section 5b of the Commodity Exchange Act.’’.

SEC. 124. PRIVACY.

The Commodity Exchange Act (7 U.S.C. 1 et seq.) is amended

by inserting after section 5f (as added by section 252) the following:

‘‘SEC. 5g. PRIVACY.

‘‘(a) TREATMENT AS FINANCIAL INSTITUTIONS.—Notwithstanding section 509(3)(B) of the Gramm-Leach-Bliley Act, any futures commission merchant, commodity trading advisor, commodity

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pool operator, or introducing broker that is subject to the jurisdiction of the Commission under this Act with respect to any financial

activity shall be treated as a financial institution for purposes of

title V of such Act with respect to such financial activity.

‘‘(b) TREATMENT OF CFTC AS FEDERAL FUNCTIONAL REGULATOR.—For purposes of title V of such Act, the Commission shall

be treated as a Federal functional regulator within the meaning of

section 509(2) of such Act and shall prescribe regulations under

such title within 6 months after the date of enactment of this section.’’.

SEC. 125. REPORT TO CONGRESS.

(a) The Commodity Futures Trading Commission (in this section referred to as the ‘‘Commission’’) shall undertake and complete

a study of the Commodity Exchange Act (in this section referred to

as ‘‘the Act’’) and the Commission’s rules, regulations and orders

governing the conduct of persons required to be registered under the

Act, not later than 1 year after the date of the enactment of this Act.

The study shall identify—

(1) the core principles and interpretations of acceptable

business practices that the Commission has adopted or intends

to adopt to replace the provisions of the Act and the Commission’s rules and regulations thereunder;

(2) the rules and regulations that the Commission has determined must be retained and the reasons therefor;

(3) the extent to which the Commission believes it can effect

the changes identified in paragraph (1) of this subsection

through its exemptive authority under section 4(c) of the Act;

and

(4) the regulatory functions the Commission currently performs that can be delegated to a registered futures association

(within the meaning of the Act) and the regulatory functions

that the Commission has determined must be retained and the

reasons therefor.

(b) In conducting the study, the Commission shall solicit the

views of the public as well as Commission registrants, registered entities, and registered futures associations (all within the meaning of

the Act).

(c) The Commission shall transmit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report of the results

of its study, which shall include an analysis of comments received.

SEC. 126. INTERNATIONAL ACTIVITIES OF THE COMMODITY FUTURES

TRADING COMMISSION.

(a) FINDINGS.—The Congress finds that—

(1) derivatives markets serving United States industry are

increasingly global in scope;

(2) developments in data processing and communications

technologies enable users of risk management services to analyze and compare those services on a worldwide basis;

(3) financial services regulatory policy must be flexible to

account for rapidly changing derivatives industry business

practices;

700

(4) regulatory impediments to the operation of global business interests can compromise the competitiveness of United

States businesses;

(5) events that disrupt financial markets and economies are

often global in scope, require rapid regulatory response, and coordinated regulatory effort across international jurisdictions;

(6) through its membership in the International

Organisation of Securities Commissions, the Commodity Futures Trading Commission has promoted beneficial communication among market regulators and international regulatory cooperation; and

(7) the Commodity Futures Trading Commission and other

United States financial regulators and self-regulatory organizations should continue to foster productive and cooperative working relationships with their counterparts in foreign jurisdictions.

(b) SENSE OF THE CONGRESS.—It is the sense of the Congress

that, consistent with its responsibilities under the Commodity Exchange Act, the Commodity Futures Trading Commission should, as

part of its international activities, continue to coordinate with foreign regulatory authorities, to participate in international regulatory organizations and forums, and to provide technical assistance

to foreign government authorities, in order to encourage—

(1) the facilitation of cross-border transactions through the

removal or lessening of any unnecessary legal or practical obstacles;

(2) the development of internationally accepted regulatory

standards of best practice;

(3) the enhancement of international supervisory cooperation and emergency procedures;

(4) the strengthening of international cooperation for customer and market protection; and

(5) improvements in the quality and timeliness of international information sharing.

TITLE II—COORDINATED REGULATION OF SECURITY

FUTURES PRODUCTS

Subtitle A—Securities Law Amendments

SEC. 201. DEFINITIONS UNDER THE SECURITIES EXCHANGE ACT OF

1934.

Section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C.

78c(a)) is amended—

(1) in paragraph (10), by inserting ‘‘security future,’’ after

‘‘treasury stock,’’;

(2) by striking paragraph (11) and inserting the following:

‘‘(11) The term ‘equity security’ means any stock or similar

security; or any security future on any such security; or any security convertible, with or without consideration, into such a security, or carrying any warrant or right to subscribe to or purchase such a security; or any such warrant or right; or any

other security which the Commission shall deem to be of similar

nature and consider necessary or appropriate, by such rules

701

and regulations as it may prescribe in the public interest or for

the protection of investors, to treat as an equity security.’’;

(3) in paragraph (13), by adding at the end the following:

‘‘For security futures products, such term includes any contract,

agreement, or transaction for future delivery.’’;

(4) in paragraph (14), by adding at the end the following:

‘‘For security futures products, such term includes any contract,

agreement, or transaction for future delivery.’’; and

(5) by adding at the end the following:

‘‘(55)(A) The term ‘security future’ means a contract of sale

for future delivery of a single security or of a narrow-based security index, including any interest therein or based on the

value thereof, except an exempted security under section 3(a)(12)

of the Securities Exchange Act of 1934 as in effect on the date

of enactment of the Futures Trading Act of 1982 (other than

any municipal security as defined in section 3(a)(29) as in effect

on the date of enactment of the Futures Trading Act of 1982).

The term ‘security future’ does not include any agreement, contract, or transaction excluded from the Commodity Exchange

Act under section 2(c), 2(d), 2(f) or 2(g) of the Commodity Exchange Act (as in effect on the date of enactment of the Commodity Futures Modernization Act of 2000) or title IV of the

Commodity Futures Modernization Act of 2000.

‘‘(B) The term ‘narrow-based security index’ means an

index—

‘‘(i) that has 9 or fewer component securities;

‘‘(ii) in which a component security comprises more

than 30 percent of the index’s weighting;

‘‘(iii) in which the 5 highest weighted component securities in the aggregate comprise more than 60 percent of the

index’s weighting; or

‘‘(iv) in which the lowest weighted component securities

comprising, in the aggregate, 25 percent of the index’s

weighting have an aggregate dollar value of average daily

trading volume of less than $50,000,000 (or in the case of

an index with 15 or more component securities,

$30,000,000), except that if there are two or more securities

with equal weighting that could be included in the calculation of the lowest weighted component securities comprising, in the aggregate, 25 percent of the index’s

weighting, such securities shall be ranked from lowest to

highest dollar value of average daily trading volume and

shall be included in the calculation based on their ranking

starting with the lowest ranked security.

‘‘(C) Notwithstanding subparagraph (B), an index is not a

narrow-based security index if—

‘‘(i)(I) it has at least 9 component securities;

‘‘(II) no component security comprises more than

30 percent of the index’s weighting; and

‘‘(III) each component security is—

‘‘(aa) registered pursuant to section 12 of the

Securities Exchange Act of 1934;

‘‘(bb) 1 of 750 securities with the largest market capitalization; and

702

‘‘(cc) 1 of 675 securities with the largest dollar

value of average daily trading volume;

‘‘(ii) a board of trade was designated as a contract

market by the Commodity Futures Trading Commission with respect to a contract of sale for future delivery on the index, before the date of enactment of the

Commodity Futures Modernization Act of 2000;

‘‘(iii)(I) a contract of sale for future delivery on the

index traded on a designated contract market or registered derivatives transaction execution facility for at

least 30 days as a contract of sale for future delivery

on an index that was not a narrow-based security

index; and

‘‘(II) it has been a narrow-based security index for

no more than 45 business days over 3 consecutive calendar months;

‘‘(iv) a contract of sale for future delivery on the

index is traded on or subject to the rules of a foreign

board of trade and meets such requirements as are

jointly established by rule or regulation by the Commission and the Commodity Futures Trading Commission;

‘‘(v) no more than 18 months have passed since the

date of enactment of the Commodity Futures Modernization Act of 2000 and—

‘‘(I) it is traded on or subject to the rules of a

foreign board of trade;

‘‘(II) the offer and sale in the United States of

a contract of sale for future delivery on the index

was authorized before the date of the enactment of

the Commodity Futures Modernization Act of

2000; and

‘‘(III) the conditions of such authorization continue to be met; or

‘‘(vi) a contract of sale for future delivery on the

index is traded on or subject to the rules of a board of

trade and meets such requirements as are jointly established by rule, regulation, or order by the Commission

and the Commodity Futures Trading Commission.

‘‘(D) Within 1 year after the enactment of the Commodity

Futures Modernization Act of 2000, the Commission and the

Commodity Futures Trading Commission jointly shall adopt

rules or regulations that set forth the requirements under clause

(iv) of subparagraph (C).

‘‘(E) An index that is a narrow-based security index solely

because it was a narrow-based security index for more than 45

business days over 3 consecutive calendar months pursuant to

clause (iii) of subparagraph (C) shall not be a narrow-based security index for the 3 following calendar months.

‘‘(F) For purposes of subparagraphs (B) and (C) of this

paragraph—

‘‘(i) the dollar value of average daily trading volume

and the market capitalization shall be calculated as of the

preceding 6 full calendar months; and

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‘‘(ii) the Commission and the Commodity Futures

Trading Commission shall, by rule or regulation, jointly

specify the method to be used to determine market capitalization and dollar value of average daily trading volume.

‘‘(56) The term ‘security futures product’ means a security

future or any put, call, straddle, option, or privilege on any security future.

‘‘(57)(A) The term ‘margin’, when used with respect to a security futures product, means the amount, type, and form of collateral required to secure any extension or maintenance of credit, or the amount, type, and form of collateral required as a performance bond related to the purchase, sale, or carrying of a security futures product.

‘‘(B) The terms ‘margin level’ and ‘level of margin’, when

used with respect to a security futures product, mean the

amount of margin required to secure any extension or maintenance of credit, or the amount of margin required as a performance bond related to the purchase, sale, or carrying of a security

futures product.

‘‘(C) The terms ‘higher margin level’ and ‘higher level of

margin’, when used with respect to a security futures product,

mean a margin level established by a national securities exchange registered pursuant to section 6(g) that is higher than

the minimum amount established and in effect pursuant to section 7(c)(2)(B).’’.

SEC. 202. REGULATORY RELIEF FOR MARKETS TRADING SECURITY FUTURES PRODUCTS.

(a) EXPEDITED REGISTRATION AND EXEMPTION.—Section 6 of

the Securities Exchange Act of 1934 (15 U.S.C. 78f) is amended by

adding at the end the following:

‘‘(g) NOTICE REGISTRATION OF SECURITY FUTURES PRODUCT

EXCHANGES.— ‘‘(1) REGISTRATION REQUIRED.—An exchange that lists or

trades security futures products may register as a national securities exchange solely for the purposes of trading security futures products if—

‘‘(A) the exchange is a board of trade, as that term is

defined by the Commodity Exchange Act (7 U.S.C. 1a(2)),

that—

‘‘(i) has been designated a contract market by the

Commodity Futures Trading Commission and such

designation is not suspended by order of the Commodity Futures Trading Commission; or

‘‘(ii) is registered as a derivative transaction execution facility under section 5a of the Commodity Exchange Act and such registration is not suspended by

the Commodity Futures Trading Commission; and

‘‘(B) such exchange does not serve as a market place for

transactions in securities other than—

‘‘(i) security futures products; or

‘‘(ii) futures on exempted securities or groups or indexes of securities or options thereon that have been

authorized under section 2(a)(1)(C) of the Commodity

Exchange Act.

704

‘‘(2) REGISTRATION BY NOTICE FILING.— ‘‘(A) FORM AND CONTENT.—An exchange required to

register only because such exchange lists or trades security

futures products may register for purposes of this section by

filing with the Commission a written notice in such form

as the Commission, by rule, may prescribe containing the

rules of the exchange and such other information and documents concerning such exchange, comparable to the information and documents required for national securities exchanges under section 6(a), as the Commission, by rule,

may prescribe as necessary or appropriate in the public interest or for the protection of investors. If such exchange

has filed documents with the Commodity Futures Trading

Commission, to the extent that such documents contain information satisfying the Commission’s informational requirements, copies of such documents may be filed with the

Commission in lieu of the required written notice.

‘‘(B) IMMEDIATE EFFECTIVENESS.—Such registration

shall be effective contemporaneously with the submission of

notice, in written or electronic form, to the Commission, except that such registration shall not be effective if such registration would be subject to suspension or revocation.

‘‘(C) TERMINATION.—Such registration shall be terminated immediately if any of the conditions for registration

set forth in this subsection are no longer satisfied.

‘‘(3) PUBLIC AVAILABILITY.—The Commission shall promptly

publish in the Federal Register an acknowledgment of receipt of

all notices the Commission receives under this subsection and

shall make all such notices available to the public.

‘‘(4) EXEMPTION OF EXCHANGES FROM SPECIFIED PROVI- SIONS.—‘‘(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

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tuating such exchange’s obligation to enforce the securities laws pursuant to section 19(b)(7);

‘‘(ii) such exchange shall file pursuant to sections

19(b)(1) and 19(b)(2) proposed rule changes related to

margin, except for changes resulting in higher margin

levels; and

‘‘(iii) such exchange shall file pursuant to section

19(b)(1) proposed rule changes that have been abrogated by the Commission pursuant to section

19(b)(7)(C).

‘‘(5) TRADING IN SECURITY FUTURES PRODUCTS.— ‘‘(A) IN GENERAL.—Subject to subparagraph (B), it

shall be unlawful for any person to execute or trade a security futures product until the later of—

‘‘(i) 1 year after the date of enactment of the Commodity Futures Modernization Act of 2000; or

‘‘(ii) such date that a futures association registered

under section 17 of the Commodity Exchange Act has

met the requirements set forth in section 15A(k)(2) of

this title.

‘‘(B) PRINCIPAL-TO-PRINCIPAL TRANSACTIONS.—Notwithstanding subparagraph (A), a person may execute or trade

a security futures product transaction if—

‘‘(i) the transaction is entered into—

‘‘(I) on a principal-to-principal basis between

parties trading for their own accounts or as described in section 1a(12)(B)(ii) of the Commodity

Exchange Act; and

‘‘(II) only between eligible contract participants

(as defined in subparagraphs (A), (B)(ii), and (C)

of such section 1a(12)) at the time at which the

persons enter into the agreement, contract, or

transaction; and

‘‘(ii) the transaction is entered into on or after the

later of—

‘‘(I) 8 months after the date of enactment of the

Commodity Futures Modernization Act of 2000; or

‘‘(II) such date that a futures association registered under section 17 of the Commodity Exchange Act has met the requirements set forth in

section 15A(k)(2) of this title.’’.

(b) COMMISSION REVIEW OF PROPOSED RULE CHANGES.—

(1) EXPEDITED REVIEW.—Section 19(b) of the Securities Exchange Act of 1934 (15 U.S.C. 78s(b)) is amended by adding at

the end the following:

‘‘(7) SECURITY FUTURES PRODUCT RULE CHANGES.—

‘‘(A) FILING REQUIRED.—A self-regulatory organization

that is an exchange registered with the Commission pursuant to section 6(g) of this title or that is a national securities association registered pursuant to section 15A(k) of this

title shall file with the Commission, in accordance with

such rules as the Commission may prescribe, copies of any

proposed rule change or any proposed change in, addition

to, or deletion from the rules of such self-regulatory organiVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00709 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.006 pfrm03 PsN: HR1033
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zation (hereinafter in this paragraph collectively referred to

as a ‘proposed rule change’) that relates to higher margin

levels, fraud or manipulation, recordkeeping, reporting,

listing standards, or decimal pricing for security futures

products, sales practices for security futures products for

persons who effect transactions in security futures products,

or rules effectuating such self-regulatory organization’s obligation to enforce the securities laws. Such proposed rule

change shall be accompanied by a concise general statement of the basis and purpose of such proposed rule

change. The Commission shall, upon the filing of any proposed rule change, promptly publish notice thereof together

with the terms of substance of the proposed rule change or

a description of the subjects and issues involved. The Commission shall give interested persons an opportunity to submit data, views, and arguments concerning such proposed

rule change.

‘‘(B) FILING WITH CFTC.—A proposed rule change filed

with the Commission pursuant to subparagraph (A) shall

be filed concurrently with the Commodity Futures Trading

Commission. Such proposed rule change may take effect

upon filing of a written certification with the Commodity

Futures Trading Commission under section 5c(c) of the

Commodity Exchange Act, upon a determination by the

Commodity Futures Trading Commission that review of the

proposed rule change is not necessary, or upon approval of

the proposed rule change by the Commodity Futures Trading Commission.

‘‘(C) ABROGATION OF RULE CHANGES.—Any proposed

rule change of a self-regulatory organization that has taken

effect pursuant to subparagraph (B) may be enforced by

such self-regulatory organization to the extent such rule is

not inconsistent with the provisions of this title, the rules

and regulations thereunder, and applicable Federal law. At

any time within 60 days of the date of the filing of a written certification with the Commodity Futures Trading Commission under section 5c(c) of the Commodity Exchange

Act, the date the Commodity Futures Trading Commission

determines that review of such proposed rule change is not

necessary, or the date the Commodity Futures Trading

Commission approves such proposed rule change, the Commission, after consultation with the Commodity Futures

Trading Commission, may summarily abrogate the proposed rule change and require that the proposed rule

change be refiled in accordance with the provisions of paragraph (1), if it appears to the Commission that such proposed rule change unduly burdens competition or efficiency,

conflicts with the securities laws, or is inconsistent with the

public interest and the protection of investors. Commission

action pursuant to the preceding sentence shall not affect

the validity or force of the rule change during the period it

was in effect and shall not be reviewable under section 25

of this title nor deemed to be a final agency action for purposes of section 704 of title 5, United States Code.

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‘‘(D) REVIEW OF RESUBMITTED ABROGATED RULES.—

‘‘(i) PROCEEDINGS.—Within 35 days of the date of

publication of notice of the filing of a proposed rule

change that is abrogated in accordance with subparagraph (C) and refiled in accordance with paragraph

(1), or within such longer period as the Commission

may designate up to 90 days after such date if the

Commission finds such longer period to be appropriate

and publishes its reasons for so finding or as to which

the self-regulatory organization consents, the Commission shall—

‘‘(I) by order approve such proposed rule

change; or

‘‘(II) after consultation with the Commodity

Futures Trading Commission, institute proceedings to determine whether the proposed rule

change should be disapproved. Proceedings under

subclause (II) shall include notice of the grounds

for disapproval under consideration and opportunity for hearing and be concluded within 180

days after the date of publication of notice of the

filing of the proposed rule change. At the conclusion of such proceedings, the Commission, by

order, shall approve or disapprove such proposed

rule change. The Commission may extend the time

for conclusion of such proceedings for up to 60

days if the Commission finds good cause for such

extension and publishes its reasons for so finding

or for such longer period as to which the self-regulatory organization consents.

‘‘(ii) GROUNDS FOR APPROVAL.—The Commission

shall approve a proposed rule change of a self-regulatory organization under this subparagraph if the

Commission finds that such proposed rule change does

not unduly burden competition or efficiency, does not

conflict with the securities laws, and is not inconsistent

with the public interest or the protection of investors.

The Commission shall disapprove such a proposed rule

change of a self-regulatory organization if it does not

make such finding. The Commission shall not approve

any proposed rule change prior to the 30th day after

the date of publication of notice of the filing thereof,

unless the Commission finds good cause for so doing

and publishes its reasons for so finding.’’.

(2) DECIMAL PRICING PROVISIONS.—Section 19(b) of the Securities Exchange Act of 1934 (15 U.S.C. 78s(b)) is amended by

inserting after paragraph (7), as added by paragraph (1), the

following:

‘‘(8) DECIMAL PRICING.—Not later than 9 months after the

date on which trading in any security futures product commences under this title, all self-regulatory organizations listing

or trading security futures products shall file proposed rule

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tures products. The Commission may not require such rules to

contain equal minimum increments in such decimal pricing.’’.

(3) CONSULTATION PROVISIONS.—Section 19(b) of the Securities Exchange Act of 1934 (15 U.S.C. 78s(b)) is amended by

inserting after paragraph (8), as added by paragraph (2), the

following:

‘‘(9) CONSULTATION WITH CFTC.—

‘‘(A) CONSULTATION REQUIRED.—The Commission shall

consult with and consider the views of the Commodity Futures Trading Commission prior to approving or disapproving a proposed rule change filed by a national securities association registered pursuant to section 15A(a) or a

national securities exchange subject to the provisions of

subsection (a) that primarily concerns conduct related to

transactions in security futures products, except where the

Commission determines that an emergency exists requiring

expeditious or summary action and publishes its reasons

therefor.

‘‘(B) RESPONSES TO CFTC COMMENTS AND FINDINGS.—

If the Commodity Futures Trading Commission comments

in writing to the Commission on a proposed rule that has

been published for comment, the Commission shall respond

in writing to such written comment before approving or disapproving the proposed rule. If the Commodity Futures

Trading Commission determines, and notifies the Commission, that such rule, if implemented or as applied, would—

‘‘(i) adversely affect the liquidity or efficiency of the

market for security futures products; or

‘‘(ii) impose any burden on competition not necessary or appropriate in furtherance of the purposes of

this section,

the Commission shall, prior to approving or disapproving

the proposed rule, find that such rule is necessary and appropriate in furtherance of the purposes of this section notwithstanding the Commodity Futures Trading Commission’s determination.’’.

(c) REVIEW OF DISCIPLINARY PROCEEDINGS.—Section 19(d) of

the Securities Exchange Act of 1934 (15 U.S.C. 78s(d)) is amended

by adding at the end the following:

‘‘(3) The provisions of this subsection shall apply to an exchange

registered pursuant to section 6(g) of this title or a national securities association registered pursuant to section 15A(k) of this title

only to the extent that such exchange or association imposes any

final disciplinary sanction for—

‘‘(A) a violation of the Federal securities laws or the rules

and regulations thereunder; or

‘‘(B) a violation of a rule of such exchange or association,

as to which a proposed change would be required to be filed

under section 19 of this title, except that, to the extent that the

exchange or association rule violation relates to any account,

agreement, contract, or transaction, this subsection shall apply

only to the extent such violation involves a security futures

product.’’.

709

SEC. 203. REGULATORY RELIEF FOR INTERMEDIARIES TRADING SECURITY FUTURES PRODUCTS.

(a) EXPEDITED REGISTRATION AND EXEMPTIONS.—

(1) AMENDMENT.—Section 15(b) of the Securities Exchange

Act of 1934 (15 U.S.C. 78o(b)) is amended by adding at the end

the following:

‘‘(11) BROKER/DEALER REGISTRATION WITH RESPECT TO

TRANSACTIONS IN SECURITY FUTURES PRODUCTS.—

‘‘(A) NOTICE REGISTRATION.—

‘‘(i) CONTENTS OF NOTICE.—Notwithstanding paragraphs (1) and (2), a broker or dealer required to register only because it effects transactions in security futures products on an exchange registered pursuant to

section 6(g) may register for purposes of this section by

filing with the Commission a written notice in such

form and containing such information concerning such

broker or dealer and any persons associated with such

broker or dealer as the Commission, by rule, may prescribe as necessary or appropriate in the public interest

or for the protection of investors. A broker or dealer

may not register under this paragraph unless that

broker or dealer is a member of a national securities

association registered under section 15A(k).

‘‘(ii) IMMEDIATE EFFECTIVENESS.—Such registration shall be effective contemporaneously with the submission of notice, in written or electronic form, to the

Commission, except that such registration shall not be

effective if the registration would be subject to suspension or revocation under paragraph (4).

‘‘(iii) SUSPENSION.—Such registration shall be suspended immediately if a national securities association

registered pursuant to section 15A(k) of this title suspends the membership of that broker or dealer.

‘‘(iv) TERMINATION.—Such registration shall be terminated immediately if any of the above stated conditions for registration set forth in this paragraph are no

longer satisfied.

‘‘(B) EXEMPTIONS FOR REGISTERED BROKERS AND DEALERS.—A broker or dealer registered pursuant to the requirements of subparagraph (A) shall be exempt from the following provisions of this title and the rules thereunder with

respect to transactions in security futures products:

‘‘(i) Section 8.

‘‘(ii) Section 11.

‘‘(iii) Subsections (c)(3) and (c)(5) of this section.

‘‘(iv) Section 15B.

‘‘(v) Section 15C.

‘‘(vi) Subsections (d), (e), (f), (g), (h), and (i) of section 17.’’.

(2) CONFORMING AMENDMENT.—Section 28(e) of the Securities Exchange Act of 1934 (15 U.S.C. 78bb(e)) is amended by

adding at the end the following:

‘‘(4) The provisions of this subsection shall not apply with regard to securities that are security futures products.’’.

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(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 EX- CHANGE MEMBERS.— ‘‘(A) REGISTRATION EXEMPTION.—A natural person

shall be exempt from the registration requirements of this

section if such person—

‘‘(i) is a member of a designated contract market

registered with the Commission as an exchange pursuant to section 6(g);

‘‘(ii) effects transactions only in securities on the

exchange of which such person is a member; and

‘‘(iii) does not directly accept or solicit orders from

public customers or provide advice to public customers

in connection with the trading of security futures products.

‘‘(B) OTHER EXEMPTIONS.—A natural person exempt

from registration pursuant to subparagraph (A) shall also

be exempt from the following provisions of this title and the

rules thereunder:

‘‘(i) Section 8.

‘‘(ii) Section 11.

‘‘(iii) Subsections (c)(3), (c)(5), and (e) of this section.

‘‘(iv) Section 15B.

‘‘(v) Section 15C.

‘‘(vi) Subsections (d), (e), (f), (g), (h), and (i) of section 17.’’.

(c) LIMITED PURPOSE NATIONAL SECURITIES ASSOCIATION.— Section 15A of the Securities Exchange Act of 1934 (15 U.S.C. 78o–

3) is amended by adding at the end the following:

‘‘(k) LIMITED PURPOSE NATIONAL SECURITIES ASSOCIATION.—

‘‘(1) REGULATION OF MEMBERS WITH RESPECT TO SECURITY

FUTURES PRODUCTS.—A futures association registered under

section 17 of the Commodity Exchange Act shall be a registered

national securities association for the limited purpose of regulating the activities of members who are registered as brokers

or dealers in security futures products pursuant to section

15(b)(11).

‘‘(2) REQUIREMENTS FOR REGISTRATION.—Such a securities

association shall—

‘‘(A) be so organized and have the capacity to carry out

the purposes of the securities laws applicable to security futures products and to comply, and (subject to any rule or

order of the Commission pursuant to section 19(g)(2)) to enforce compliance by its members and persons associated

with its members, with the provisions of the securities laws

applicable to security futures products, the rules and regulations thereunder, and its rules;

‘‘(B) have rules that—

‘‘(i) are designed to prevent fraudulent and manipulative acts and practices, to promote just and equiVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00714 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.006 pfrm03 PsN: HR1033
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table principles of trade, and, in general, to protect investors and the public interest, including rules governing sales practices and the advertising of security

futures products reasonably comparable to those of

other national securities associations registered pursuant to subsection (a) that are applicable to security futures products; and

‘‘(ii) are not designed to regulate by virtue of any

authority conferred by this title matters not related to

the purposes of this title or the administration of the

association;

‘‘(C) have rules that provide that (subject to any rule or

order of the Commission pursuant to section 19(g)(2)) its

members and persons associated with its members shall be

appropriately disciplined for violation of any provision of

the securities laws applicable to security futures products,

the rules or regulations thereunder, or the rules of the association, by expulsion, suspension, limitation of activities,

functions, and operations, fine, censure, being suspended or

barred from being associated with a member, or any other

fitting sanction; and

‘‘(D) have rules that ensure that members and natural

persons associated with members meet such standards of

training, experience, and competence necessary to effect

transactions in security futures products and are tested for

their knowledge of securities and security futures products.

‘‘(3) EXEMPTION FROM RULE CHANGE SUBMISSION.—Such a

securities association shall be exempt from submitting proposed

rule changes pursuant to section 19(b) of this title, except that—

‘‘(A) the association shall file proposed rule changes related to higher margin levels, fraud or manipulation, recordkeeping, reporting, listing standards, or decimal pricing

for security futures products, sales practices for, advertising

of, or standards of training, experience, competence, or

other qualifications for security futures products for persons

who effect transactions in security futures products, or rules

effectuating the association’s obligation to enforce the securities laws pursuant to section 19(b)(7);

‘‘(B) the association shall file pursuant to sections

19(b)(1) and 19(b)(2) proposed rule changes related to margin, except for changes resulting in higher margin levels;

and

‘‘(C) the association shall file pursuant to section

19(b)(1) proposed rule changes that have been abrogated by

the Commission pursuant to section 19(b)(7)(C).

‘‘(4) OTHER EXEMPTIONS.—Such a securities association

shall be exempt from and shall not be required to enforce compliance by its members, and its members shall not, solely with

respect to their transactions effected in security futures products, be required to comply, with the following provisions of this

title and the rules thereunder:

‘‘(A) Section 8.

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‘‘(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 AGEN- CIES.—All’’;

(2) by striking ‘‘prior to conducting any such examination

of a registered clearing’’ and inserting the following: ‘‘prior to

conducting any such examination of a—

‘‘(A) registered clearing’’;

(3) by redesignating the last sentence as paragraph (4)(C);

(4) by striking the period at the end of the first sentence

and inserting the following: ‘‘; or

‘‘(B) broker or dealer registered pursuant to section

15(b)(11), exchange registered pursuant to section 6(g), or

national securities association registered pursuant to section 15A(k) gives notice to the Commodity Futures Trading

Commission of such proposed examination and consults

with the Commodity Futures Trading Commission concerning the feasibility and desirability of coordinating such

examination with examinations conducted by the Commodity Futures Trading Commission in order to avoid unnecessary regulatory duplication or undue regulatory burdens for such broker or dealer or exchange.’’;

(5) by adding at the end the following new paragraphs:

‘‘(2) FURNISHING DATA AND REPORTS TO CFTC.—The Commission shall notify the Commodity Futures Trading Commission of any examination conducted of any broker or dealer registered pursuant to section 15(b)(11), exchange registered pursuant to section 6(g), or national securities association registered

pursuant to section 15A(k) and, upon request, furnish to the

Commodity Futures Trading Commission any examination reVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00716 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.006 pfrm03 PsN: HR1033
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port and data supplied to, or prepared by, the Commission in

connection with such examination.

‘‘(3) USE OF CFTC REPORTS.—Prior to conducting an examination under paragraph (1), the Commission shall use the reports of examinations, if the information available therein is

sufficient for the purposes of the examination, of—

‘‘(A) any broker or dealer registered pursuant to section

15(b)(11);

‘‘(B) exchange registered pursuant to section 6(g); or

‘‘(C) national securities association registered pursuant

to section 15A(k);

that is made by the Commodity Futures Trading Commission,

a national securities association registered pursuant to section

15A(k), or an exchange registered pursuant to section 6(g).

‘‘(4) RULES OF CONSTRUCTION.—

‘‘(A) Notwithstanding any other provision of this subsection, the records of a broker or dealer registered pursuant to section 15(b)(11), an exchange registered pursuant to

section 6(g), or a national securities association registered

pursuant to section 15A(k) described in this subparagraph

shall not be subject to routine periodic examinations by the

Commission.

‘‘(B) Any recordkeeping rules adopted under this subsection for a broker or dealer registered pursuant to section

15(b)(11), an exchange registered pursuant to section 6(g),

or a national securities association registered pursuant to

section 15A(k) shall be limited to records with respect to

persons, accounts, agreements, contracts, and transactions

involving security futures products.’’; and

(6) in paragraph (4)(C) (as redesignated by paragraph (3)

of this section), by striking ‘‘Nothing in the proviso to the preceding sentence’’ and inserting ‘‘Nothing in the proviso in paragraph (1)’’.

SEC. 205. MAINTENANCE OF MARKET INTEGRITY FOR SECURITY FUTURES PRODUCTS.

(a) ADDITION OF SECURITY FUTURES PRODUCTS TO OPTION-SPECIFIC ENFORCEMENT PROVISIONS.—

(1) PROHIBITION AGAINST MANIPULATION.—Section 9(b) of

the Securities Exchange Act of 1934 (15 U.S.C. 78i(b)) is

amended—

(A) in paragraph (1)—

(i) by inserting ‘‘(A)’’ after ‘‘acquires’’; and

(ii) by striking ‘‘; or’’ and inserting ‘‘; or (B) any security futures product on the security; or’’;

(B) in paragraph (2)—

(i) by inserting ‘‘(A)’’ after ‘‘interest in any’’; and

(ii) by striking ‘‘; or’’ and inserting ‘‘; or (B) such

security futures product; or’’; and

(C) in paragraph (3)—

(i) by inserting ‘‘(A)’’ after ‘‘interest in any’’; and

(ii) by inserting ‘‘; or (B) such security futures

product’’ after ‘‘privilege’’.

714

(2) MANIPULATION IN OPTIONS AND OTHER DERIVATIVE

PRODUCTS.—Section 9(g) of the Securities Exchange Act of 1934

(15 U.S.C. 78i(g)) is amended—

(A) by inserting ‘‘(1)’’ after ‘‘(g)’’;

(B) by inserting ‘‘other than a security futures product’’

after ‘‘future delivery’’; and

(C) by adding at the end following:

‘‘(2) Notwithstanding the Commodity Exchange Act, the Commission shall have the authority to regulate the trading of any security futures product to the extent provided in the securities laws.’’.

(3) LIABILITY OF CONTROLLING PERSONS AND PERSONS WHO

AID AND ABET VIOLATIONS.—Section 20(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78t(d)) is amended by striking

‘‘or privilege’’ and inserting ‘‘, privilege, or security futures product’’.

(4) LIABILITY TO CONTEMPORANEOUS TRADERS FOR INSIDER

TRADING.—Section 21A(a)(1) of the Securities Exchange Act of

1934 (15 U.S.C. 78u–1(a)(1)) is amended by striking ‘‘standardized options, the Commission—’’ and inserting ‘‘standardized

options or security futures products, the Commission—’’.

(5) ENFORCEMENT CONSULTATION.—Section 21 of the Securities Exchange Act of 1934 (15 U.S.C. 78u) is amended by adding at the end the following:

‘‘(i) INFORMATION TO CFTC.—The Commission shall provide the

Commodity Futures Trading Commission with notice of the commencement of any proceeding and a copy of any order entered by the

Commission against any broker or dealer registered pursuant to section 15(b)(11), any exchange registered pursuant to section 6(g), or

any national securities association registered pursuant to section

15A(k).’’.

SEC. 206. SPECIAL PROVISIONS FOR THE TRADING OF SECURITY FUTURES PRODUCTS.

(a) LISTING STANDARDS AND CONDITIONS FOR TRADING.—Section 6 of the Securities Exchange Act of 1934 (15 U.S.C. 78f) is

amended by inserting after subsection (g), as added by section 202,

the following:

‘‘(h) TRADING IN SECURITY FUTURES PRODUCTS.—

‘‘(1) TRADING ON EXCHANGE OR ASSOCIATION REQUIRED.—It

shall be unlawful for any person to effect transactions in security futures products that are not listed on a national securities

exchange or a national securities association registered pursuant to section 15A(a).

‘‘(2) LISTING STANDARDS REQUIRED.—Except as otherwise

provided in paragraph (7), a national securities exchange or a

national securities association registered pursuant to section

15A(a) may trade only security futures products that (A) conform with listing standards that such exchange or association

files with the Commission under section 19(b) and (B) meet the

criteria specified in section 2(a)(1)(D)(i) of the Commodity Exchange Act.

‘‘(3) REQUIREMENTS FOR LISTING STANDARDS AND CONDITIONS FOR TRADING.—Such listing standards shall—

‘‘(A) except as otherwise provided in a rule, regulation,

or order issued pursuant to paragraph (4), require that any

715

security underlying the security future, including each component security of a narrow-based security index, be registered pursuant to section 12 of this title;

‘‘(B) require that if the security futures product is not

cash settled, the market on which the security futures product is traded have arrangements in place with a registered

clearing agency for the payment and delivery of the securities underlying the security futures product;

‘‘(C) be no less restrictive than comparable listing

standards for options traded on a national securities exchange or national securities association registered pursuant to section 15A(a) of this title;

‘‘(D) except as otherwise provided in a rule, regulation,

or order issued pursuant to paragraph (4), require that the

security future be based upon common stock and such other

equity securities as the Commission and the Commodity

Futures Trading Commission jointly determine appropriate;

‘‘(E) require that the security futures product is cleared

by a clearing agency that has in place provisions for linked

and coordinated clearing with other clearing agencies that

clear security futures products, which permits the security

futures product to be purchased on one market and offset

on another market that trades such product;

‘‘(F) require that only a broker or dealer subject to suitability rules comparable to those of a national securities association registered pursuant to section 15A(a) effect transactions in the security futures product;

‘‘(G) require that the security futures product be subject

to the prohibition against dual trading in section 4j of the

Commodity Exchange Act (7 U.S.C. 6j) and the rules and

regulations thereunder or the provisions of section 11(a) of

this title and the rules and regulations thereunder, except

to the extent otherwise permitted under this title and the

rules and regulations thereunder;

‘‘(H) require that trading in the security futures product not be readily susceptible to manipulation of the price

of such security futures product, nor to causing or being

used in the manipulation of the price of any underlying security, option on such security, or option on a group or

index including such securities;

‘‘(I) require that procedures be in place for coordinated

surveillance among the market on which the security futures product is traded, any market on which any security

underlying the security futures product is traded, and other

markets on which any related security is traded to detect

manipulation and insider trading;

‘‘(J) require that the market on which the security futures product is traded has in place audit trails necessary

or appropriate to facilitate the coordinated surveillance required in subparagraph (I);

‘‘(K) require that the market on which the security futures product is traded has in place procedures to coordinate trading halts between such market and any market on

716

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 RE- QUIREMENTS.— ‘‘(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 SECU- RITY FUTURE PRODUCTS.—It shall be unlawful for any person

(other than a national securities exchange or a national securities association registered pursuant to section 15A(a)) to constitute, maintain, or provide a marketplace or facilities for

bringing together purchasers and sellers of security future products or to otherwise perform with respect to security future

products the functions commonly performed by a stock exchange

as that term is generally understood, unless a national securities association registered pursuant to section 15A(a) or a national securities exchange of which such person is a member—

‘‘(A) has in place procedures for coordinated surveillance among such person, the market trading the securities

underlying the security future products, and other markets

trading related securities to detect manipulation and insider trading;

‘‘(B) has rules to require audit trails necessary or appropriate to facilitate the coordinated surveillance required

in subparagraph (A); and

‘‘(C) has rules to require such person to coordinate

trading halts with markets trading the securities underlying the security future products and other markets trading related securities.

‘‘(6) DEFERRAL OF OPTIONS ON SECURITY FUTURES TRADING.—No person shall offer to enter into, enter into, or confirm

the execution of any put, call, straddle, option, or privilege on

717

a security future, except that, after 3 years after the date of enactment of this subsection, the Commission and the Commodity

Futures Trading Commission may by order jointly determine to

permit trading of puts, calls, straddles, options, or privileges on

any security future authorized to be traded under the provisions

of this Act and the Commodity Exchange Act.

‘‘(7) DEFERRAL OF LINKED AND COORDINATED CLEARING.— ‘‘(A) Notwithstanding paragraph (2), until the compliance date, a national securities exchange or national securities association registered pursuant to section 15A(a) may

trade a security futures product that does not—

‘‘(i) conform with any listing standard promulgated to meet the requirement specified in subparagraph (E) of paragraph (3); or

‘‘(ii) meet the criterion specified in section

2(a)(1)(D)(i)(IV) of the Commodity Exchange Act.

‘‘(B) The Commission and the Commodity Futures

Trading Commission shall jointly publish in the Federal

Register a notice of the compliance date no later than 165

days before the compliance date.

‘‘(C) For purposes of this paragraph, the term ‘compliance date’ means the later of—

‘‘(i) 180 days after the end of the first full calendar

month period in which the average aggregate comparable share volume for all security futures products

based on single equity securities traded on all national

securities exchanges, any national securities associations registered pursuant to section 15A(a), and all

other persons equals or exceeds 10 percent of the average aggregate comparable share volume of options on

single equity securities traded on all national securities

exchanges and any national securities associations registered pursuant to section 15A(a); or

‘‘(ii) 2 years after the date on which trading in any

security futures product commences under this title.’’.

(b) MARGIN.—Section 7 of the Securities Exchange Act of 1934

(15 U.S.C. 78g) is amended—

(1) in subsection (a), by inserting ‘‘or a security futures

product’’ after ‘‘exempted security’’;

(2) in subsection (c)(1)(A), by inserting ‘‘except as provided

in paragraph (2),’’ after ‘‘security),’’;

(3) by redesignating paragraph (2) of subsection (c) as

paragraph (3) of such subsection; and

(4) by inserting after paragraph (1) of such subsection the

following:

‘‘(2) MARGIN REGULATIONS.—

‘‘(A) COMPLIANCE WITH MARGIN RULES REQUIRED.—It

shall be unlawful for any broker, dealer, or member of a

national securities exchange to, directly or indirectly, extend or maintain credit to or for, or collect margin from

any customer on, any security futures product unless such

activities comply with the regulations—

‘‘(i) which the Board shall prescribe pursuant to

subparagraph (B); or

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‘‘(ii) if the Board determines to delegate the authority to prescribe such regulations, which the Commission and the Commodity Futures Trading Commission

shall jointly prescribe pursuant to subparagraph (B).

If the Board delegates the authority to prescribe such regulations under clause (ii) and the Commission and the Commodity Futures Trading Commission have not jointly prescribed such regulations within a reasonable period of time

after the date of such delegation, the Board shall prescribe

such regulations pursuant to subparagraph (B).

‘‘(B) CRITERIA FOR ISSUANCE OF RULES.—The Board

shall prescribe, or, if the authority is delegated pursuant to

subparagraph (A)(ii), the Commission and the Commodity

Futures Trading Commission shall jointly prescribe, such

regulations to establish margin requirements, including the

establishment of levels of margin (initial and maintenance)

for security futures products under such terms, and at such

levels, as the Board deems appropriate, or as the Commission and the Commodity Futures Trading Commission

jointly deem appropriate—

‘‘(i) to preserve the financial integrity of markets

trading security futures products;

‘‘(ii) to prevent systemic risk;

‘‘(iii) to require that—

‘‘(I) the margin requirements for a security future product be consistent with the margin requirements for comparable option contracts traded on

any exchange registered pursuant to section 6(a) of

this title; and

‘‘(II) initial and maintenance margin levels for

a security future product not be lower than the

lowest level of margin, exclusive of premium, required for any comparable option contract traded

on any exchange registered pursuant to section 6(a)

of this title, other than an option on a security future;

except that nothing in this subparagraph shall be construed to prevent a national securities exchange or national securities association from requiring higher margin levels for a security future product when it deems

such action to be necessary or appropriate; and

‘‘(iv) to ensure that the margin requirements (other

than levels of margin), including the type, form, and

use of collateral for security futures products, are and

remain consistent with the requirements established by

the Board, pursuant to subparagraphs (A) and (B) of

paragraph (1).’’.

(c) INCORPORATION OF SECURITY FUTURES PRODUCTS INTO THE

NATIONAL MARKET SYSTEM.—Section 11A of the Securities Exchange Act of 1934 (15 U.S.C. 78k–1) is amended by adding at the

end the following:

‘‘(e) NATIONAL MARKETS SYSTEM FOR SECURITY FUTURES PRODUCTS.—

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‘‘(1) CONSULTATION AND COOPERATION REQUIRED.—With respect to security futures products, the Commission and the

Commodity Futures Trading Commission shall consult and cooperate so that, to the maximum extent practicable, their respective regulatory responsibilities may be fulfilled and the rules

and regulations applicable to security futures products may foster a national market system for security futures products if the

Commission and the Commodity Futures Trading Commission

jointly determine that such a system would be consistent with

the congressional findings in subsection (a)(1). In accordance

with this objective, the Commission shall, at least 15 days prior

to the issuance for public comment of any proposed rule or regulation under this section concerning security futures products,

consult and request the views of the Commodity Futures Trading Commission.

‘‘(2) APPLICATION OF RULES BY ORDER OF CFTC.—No rule

adopted pursuant to this section shall be applied to any person

with respect to the trading of security futures products on an exchange that is registered under section 6(g) unless the Commodity Futures Trading Commission has issued an order directing that such rule is applicable to such persons.’’.

(d) INCORPORATION OF SECURITY FUTURES PRODUCTS INTO THE

NATIONAL SYSTEM FOR CLEARANCE AND SETTLEMENT.—Section

17A(b) of the Securities Exchange Act of 1934 (15 U.S.C. 78q–1(b))

is amended by adding at the end the following:

‘‘(7)(A) A clearing agency that is regulated directly or indirectly

by the Commodity Futures Trading Commission through its association with a designated contract market for security futures products that is a national securities exchange registered pursuant to

section 6(g), and that would be required to register pursuant to

paragraph (1) of this subsection only because it performs the functions of a clearing agency with respect to security futures products

effected pursuant to the rules of the designated contract market with

which such agency is associated, is exempted from the provisions of

this section and the rules and regulations thereunder, except that if

such a clearing agency performs the functions of a clearing agency

with respect to a security futures product that is not cash settled,

it must have arrangements in place with a registered clearing agency to effect the payment and delivery of the securities underlying the

security futures product.

‘‘(B) Any clearing agency that performs the functions of a clearing agency with respect to security futures products must coordinate

with and develop fair and reasonable links with any and all other

clearing agencies that perform the functions of a clearing agency

with respect to security futures products, in order to permit, as of

the compliance date (as defined in section 6(h)(6)(C)), security futures products to be purchased on one market and offset on another

market that trades such products.’’.

(e) MARKET EMERGENCY POWERS AND CIRCUIT BREAKERS.—Section 12(k) of the Securities Exchange Act of 1934 (15 U.S.C. 78l(k))

is amended—

(1) in paragraph (1), by adding at the end the following: ‘‘If

the actions described in subparagraph (A) or (B) involve a security futures product, the Commission shall consult with and

720

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

721

to the treatment of customer funds, securities, or property, maintenance of books and records, financial reporting, or other financial

responsibility rules, involving security futures products and (ii)

similar provisions of the Commodity Exchange Act and rules and

regulations thereunder involving security futures products.’’.

(i) OBLIGATION TO ADDRESS DUPLICATIVE REGULATION OF

DUAL REGISTRANTS.—Section 6 of the Securities Exchange Act of

1934 (15 U.S.C 78f) is amended by inserting after subsection (h), as

added by subsection (a) of this section, the following:

‘‘(i) Consistent with this title, each national securities exchange

registered pursuant to subsection (a) of this section shall issue such

rules as are necessary to avoid duplicative or conflicting rules applicable to any broker or dealer registered with the Commission pursuant to section 15(b) (except paragraph (11) thereof), that is also registered with the Commodity Futures Trading Commission pursuant

to section 4f(a) of the Commodity Exchange Act (except paragraph

(2) thereof), with respect to the application of—

(1) rules of such national securities exchange of the type

specified in section 15(c)(3)(B) involving security futures products; and

(2) similar rules of national securities exchanges registered

pursuant to section 6(g) and national securities associations

registered pursuant to section 15A(k) involving security futures

products.’’.

(j) OBLIGATION TO ADDRESS DUPLICATIVE REGULATION OF

DUAL REGISTRANTS.—Section 15A of the Securities Exchange Act of

1934 (15 U.S.C 78o–3) is amended by inserting after subsection (k),

as added by section 203, the following:

‘‘(l) Consistent with this title, each national securities association registered pursuant to subsection (a) of this section shall issue

such rules as are necessary to avoid duplicative or conflicting rules

applicable to any broker or dealer registered with the Commission

pursuant to section 15(b) (except paragraph (11) thereof), that is

also registered with the Commodity Futures Trading Commission

pursuant to section 4f(a) of the Commodity Exchange Act (except

paragraph (2) thereof), with respect to the application of—

‘‘(1) rules of such national securities association of the type

specified in section 15(c)(3)(B) involving security futures products; and

‘‘(2) similar rules of national securities associations registered pursuant to subsection (k) of this section and national

securities exchanges registered pursuant to section 6(g) involving security futures products.’’.

(k) OBLIGATION TO PUT IN PLACE PROCEDURES AND ADOPT

RULES.—

(1) NATIONAL SECURITIES ASSOCIATIONS.—Section 15A of

the Securities Exchange Act of 1934 (15 U.S.C. 78o–3) is

amended by inserting after subsection (l), as added by subsection (j) of this section, the following new subsection:

‘‘(m) PROCEDURES AND RULES FOR SECURITY FUTURE PRODUCTS.—A national securities association registered pursuant to subsection (a) shall, not later than 8 months after the date of enactment

of the Commodity Futures Modernization Act of 2000, implement

the procedures specified in section 6(h)(5)(A) of this title and adopt

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the rules specified in subparagraphs (B) and (C) of section 6(h)(5)

of this title.’’.

(2) NATIONAL SECURITIES EXCHANGES.—Section 6 of the Securities Exchange Act of 1934 (15 U.S.C. 78f) is amended by inserting after subsection (i), as added by subsection (i) of this

section, the following new subsection:

‘‘(j) PROCEDURES AND RULES FOR SECURITY FUTURE PRODUCTS.—A national securities exchange registered pursuant to subsection (a) shall implement the procedures specified in section

6(h)(5)(A) of this title and adopt the rules specified in subparagraphs (B) and (C) of section 6(h)(5) of this title not later than 8

months after the date of receipt of a request from an alternative

trading system for such implementation and rules.’’.

(l) OBLIGATION TO ADDRESS SECURITY FUTURES PRODUCTS

TRADED ON FOREIGN EXCHANGES.—Section 6 of the Securities Exchange Act of 1934 (15 U.S.C. 78f) is amended by adding after subsection (j), as added by subsection (k) of this section, the following—

‘‘(k)(1) To the extent necessary or appropriate in the public interest, to promote fair competition, and consistent with the promotion of market efficiency, innovation, and expansion of investment opportunities, the protection of investors, and the maintenance

of fair and orderly markets, the Commission and the Commodity

Futures Trading Commission shall jointly issue such rules, regulations, or orders as are necessary and appropriate to permit the offer

and sale of a security futures product traded on or subject to the

rules of a foreign board of trade to United States persons.

‘‘(2) The rules, regulations, or orders adopted under paragraph

(1) shall take into account, as appropriate, the nature and size of

the markets that the securities underlying the security futures product reflect.’’.

SEC. 207. CLEARANCE AND SETTLEMENT.

Section 17A(b) of the Securities Exchange Act of 1934 (15

U.S.C. 78q–1(b)) is amended—

(1) in paragraph (3)(A), by inserting ‘‘and derivative agreements, contracts, and transactions’’ after ‘‘prompt and accurate

clearance and settlement of securities transactions’’;

(2) in paragraph (3)(F), by inserting ‘‘and, to the extent applicable, derivative agreements, contracts, and transactions’’

after ‘‘designed to promote the prompt and accurate clearance

and settlement of securities transactions’’; and

(3) by inserting after paragraph (7), as added by section

206(d), the following:

‘‘(8) A registered clearing agency shall be permitted to provide

facilities for the clearance and settlement of any derivative agreements, contracts, or transactions that are excluded from the Commodity Exchange Act, subject to the requirements of this section and

to such rules and regulations as the Commission may prescribe as

necessary or appropriate in the public interest, for the protection of

investors, or otherwise in furtherance of the purposes of this title.’’.

SEC. 208. AMENDMENTS RELATING TO REGISTRATION AND DISCLOSURE ISSUES UNDER THE SECURITIES ACT OF 1933 AND

THE SECURITIES EXCHANGE ACT OF 1934.

(a) AMENDMENTS TO THE SECURITIES ACT OF 1933.—

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(1) TREATMENT OF SECURITY FUTURES PRODUCTS.—Section

2(a) of the Securities Act of 1933 (15 U.S.C. 77b(a)) is

amended—

(A) in paragraph (1), by inserting ‘‘security future,’’

after ‘‘treasury stock,’’;

(B) in paragraph (3), by adding at the end the following: ‘‘Any offer or sale of a security futures product by

or on behalf of the issuer of the securities underlying the security futures product, an affiliate of the issuer, or an underwriter, shall constitute a contract for sale of, sale of,

offer for sale, or offer to sell the underlying securities.’’;

(C) by adding at the end the following:

‘‘(16) The terms ‘security future’, ‘narrow-based security

index’, and ‘security futures product’ have the same meanings

as provided in section 3(a)(55) of the Securities Exchange Act

of 1934.’’.

(2) EXEMPTION FROM REGISTRATION.—Section 3(a) of the

Securities Act of 1933 (15 U.S.C. 77c(a)) is amended by adding

at the end the following:

‘‘(14) Any security futures product that is—

‘‘(A) cleared by a clearing agency registered under section 17A of the Securities Exchange Act of 1934 or exempt

from registration under subsection (b)(7) of such section

17A; and

‘‘(B) traded on a national securities exchange or a national securities association registered pursuant to section

15A(a) of the Securities Exchange Act of 1934.’’.

(3) CONFORMING AMENDMENT.—Section 12(a)(2) of the Securities Act of 1933 (15 U.S.C. 77l(a)(2)) is amended by striking

‘‘paragraph (2)’’ and inserting ‘‘paragraphs (2) and (14)’’.

(b) AMENDMENTS TO THE SECURITIES EXCHANGE ACT OF

1934.—

(1) EXEMPTION FROM REGISTRATION.—Section 12(a) of the

Securities Exchange Act of 1934 (15 U.S.C. 78l(a)) is amended

by adding at the end the following: ‘‘The provisions of this subsection shall not apply in respect of a security futures product

traded on a national securities exchange.’’.

(2) EXEMPTIONS FROM REPORTING REQUIREMENT.—Section

12(g)(5) of the Securities Exchange Act of 1934 (15 U.S.C.

78l(g)(5)) is amended by adding at the end the following: ‘‘For

purposes of this subsection, a security futures product shall not

be considered a class of equity security of the issuer of the securities underlying the security futures product.’’.

(3) TRANSACTIONS BY CORPORATE INSIDERS.—Section 16 of

the Securities Exchange Act of 1934 (15 U.S.C. 78p) is amended

by adding at the end the following:

‘‘(f) TREATMENT OF TRANSACTIONS IN SECURITY FUTURES PRODUCTS.—The provisions of this section shall apply to ownership of

and transactions in security futures products.’’.

SEC. 209. AMENDMENTS TO THE INVESTMENT COMPANY ACT OF 1940

AND THE INVESTMENT ADVISERS ACT OF 1940.

(a) DEFINITIONS UNDER THE INVESTMENT COMPANY ACT OF

1940 AND THE INVESTMENT ADVISERS ACT OF 1940.—

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(1) Section 2(a)(36) of the Investment Company Act of 1940

(15 U.S.C. 80a–2(a)(36)) is amended by inserting ‘‘security future,’’ after ‘‘treasury stock,’’.

(2) Section 202(a)(18) of the Investment Advisers Act of

1940 (15 U.S.C. 80b–2(a)(18)) is amended by inserting ‘‘security

future,’’ after ‘‘treasury stock,’’.

(3) Section 2(a) of the Investment Company Act of 1940 (15

U.S.C. 80a–2(a)) is amended by adding at the end the following:

‘‘(52) The terms ‘security future’ and ‘narrow-based security

index’ have the same meanings as provided in section 3(a)(55)

of the Securities Exchange Act of 1934.’’.

(4) Section 202(a) of the Investment Advisers Act of 1940

(15 U.S.C. 80b–2(a)) is amended by adding at the end the following:

‘‘(27) The terms ‘security future’ and ‘narrow-based security

index’ have the same meanings as provided in section 3(a)(55)

of the Securities Exchange Act of 1934.’’.

(b) OTHER PROVISION.—Section 203(b) of the Investment Advisers Act of 1940 (15 U.S.C. 80b–3(b)) is amended—

(1) by striking ‘‘or’’ at the end of paragraph (4);

(2) by striking the period at the end of paragraph (5) and

inserting ‘‘; or’’; and

(3) by adding at the end the following:

‘‘(6) any investment adviser that is registered with the Commodity Futures Trading Commission as a commodity trading

advisor whose business does not consist primarily of acting as

an investment adviser, as defined in section 202(a)(11) of this

title, and that does not act as an investment adviser to—

‘‘(A) an investment company registered under title I of

this Act; or

‘‘(B) a company which has elected to be a business development company pursuant to section 54 of title I of this

Act and has not withdrawn its election.’’.

SEC. 210. PREEMPTION OF STATE LAWS.

Section 28(a) of the Securities Exchange Act of 1934 (15 U.S.C.

78bb(a)) is amended—

(1) in the last sentence—

(A) by inserting ‘‘subject to this title’’ after ‘‘privilege, or

other security’’; and

(B) by striking ‘‘any such instrument, if such instrument is traded pursuant to rules and regulations of a selfregulatory 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.’’.

725

Subtitle B—Amendments to the Commodity Exchange Act

SEC. 251. JURISDICTION OF SECURITIES AND EXCHANGE COMMISSION; OTHER PROVISIONS.

(a) JURISDICTION OF SECURITIES AND EXCHANGE COMMIS- SION.— (1) Section 2(a)(1)(C) of the Commodity Exchange Act (7

U.S.C. 2a) (as redesignated by section 34(a)(2)(C)) is amended—

(A) in clause (ii)—

(i) by inserting ‘‘or register a derivatives transaction execution facility that trades or executes,’’ after

‘‘contract market in,’’;

(ii) by inserting after ‘‘contracts) for future delivery’’ the following: ‘‘, and no derivatives transaction

execution facility shall trade or execute such contracts

of sale (or options on such contracts) for future delivery,’’;

(iii) by striking ‘‘making such application demonstrates and the Commission expressly finds that the

specific contract (or option on such contract) with respect to which the application has been made meets’’

and inserting ‘‘or the derivatives transaction execution

facility, and the applicable contract, meet’’;

(iv) by striking subclause (III) of clause (ii) and inserting the following:

‘‘(III) Such group or index of securities shall not constitute a narrow-based security index.’’;

(B) by striking clause (iii);

(C) by striking clause (iv) and inserting the following:

‘‘(iii) If, in its discretion, the Commission determines that

a stock index futures contract, notwithstanding its conformance

with the requirements in clause (ii) of this subparagraph, can

reasonably be used as a surrogate for trading a security (including a security futures product), it may, by order, require

such contract and any option thereon be traded and regulated

as security futures products as defined in section 3(a)(56) of the

Securities Exchange Act of 1934 and section 1a of this Act subject to all rules and regulations applicable to security futures

products under this Act and the securities laws as defined in

section 3(a)(47) of the Securities Exchange Act of 1934.’’; and

(D) by redesignating clause (v) as clause (iv).

(2) Section 2(a)(1) of the Commodity Exchange Act (7

U.S.C. 2, 2a, 4) is amended by adding at the end the following:

‘‘(D)(i) Notwithstanding any other provision of this Act, the Securities and Exchange Commission shall have jurisdiction and authority over security futures as defined in section 3(a)(55) of the Securities Exchange Act of 1934, section 2(a)(16) of the Securities Act

of 1933, section 2(a)(52) of the Investment Company Act of 1940,

and section 202(a)(27) of the Investment Advisers Act of 1940, options on security futures, and persons effecting transactions in security futures and options thereon, and this Act shall apply to and the

Commission shall have jurisdiction with respect to accounts, agreements (including any transaction which is of the character of, or is

commonly known to the trade as, an ‘option’, ‘privilege’, ‘indemnity’,

‘bid’, ‘offer’, ‘put’, ‘call’, ‘advance guaranty’, or ‘decline guaranty’),

726

contracts, and transactions involving, and may designate a board

of trade as a contract market in, or register a derivatives transaction execution facility that trades or executes, a security futures

product as defined in section 1a of this Act: Provided, however,

That, except as provided in clause (vi) of this subparagraph, no

board of trade shall be designated as a contract market with respect

to, or registered as a derivatives transaction execution facility for,

any such contracts of sale for future delivery unless the board of

trade and the applicable contract meet the following criteria:

‘‘(I) Except as otherwise provided in a rule, regulation, or

order issued pursuant to clause (v) of this subparagraph, any

security underlying the security future, including each component security of a narrow-based security index, is registered

pursuant to section 12 of the Securities Exchange Act of 1934.

‘‘(II) If the security futures product is not cash settled, the

board of trade on which the security futures product is traded

has arrangements in place with a clearing agency registered

pursuant to section 17A of the Securities Exchange Act of 1934

for the payment and delivery of the securities underlying the security futures product.

‘‘(III) Except as otherwise provided in a rule, regulation, or

order issued pursuant to clause (v) of this subparagraph, the security future is based upon common stock and such other equity

securities as the Commission and the Securities and Exchange

Commission jointly determine appropriate.

‘‘(IV) The security futures product is cleared by a clearing

agency that has in place provisions for linked and coordinated

clearing with other clearing agencies that clear security futures

products, which permits the security futures product to be purchased on a designated contract market, registered derivatives

transaction execution facility, national securities exchange registered under section 6(a) of the Securities Exchange Act of

1934, or national securities association registered pursuant to

section 15A(a) of the Securities Exchange Act of 1934 and offset

on another designated contract market, registered derivatives

transaction execution facility, national securities exchange registered under section 6(a) of the Securities Exchange Act of

1934, or national securities association registered pursuant to

section 15A(a) of the Securities Exchange Act of 1934.

‘‘(V) Only futures commission merchants, introducing brokers, commodity trading advisors, commodity pool operators or

associated persons subject to suitability rules comparable to

those of a national securities association registered pursuant to

section 15A(a) of the Securities Exchange Act of 1934 solicit, accept any order for, or otherwise deal in any transaction in or

in connection with the security futures product.

‘‘(VI) The security futures product is subject to a prohibition

against dual trading in section 4j of this Act and the rules and

regulations thereunder or the provisions of section 11(a) of the

Securities Exchange Act of 1934 and the rules and regulations

thereunder, except to the extent otherwise permitted under the

Securities Exchange Act of 1934 and the rules and regulations

thereunder.

727

‘‘(VII) Trading in the security futures product is not readily

susceptible to manipulation of the price of such security futures

product, nor to causing or being used in the manipulation of

the price of any underlying security, option on such security, or

option on a group or index including such securities;

‘‘(VIII) The board of trade on which the security futures

product is traded has procedures in place for coordinated surveillance among such board of trade, any market on which any

security underlying the security futures product is traded, and

other markets on which any related security is traded to detect

manipulation and insider trading, except that, if the board of

trade is an alternative trading system, a national securities association registered pursuant to section 15A(a) of the Securities

Exchange Act of 1934 or national securities exchange registered

pursuant to section 6(a) of the Securities Exchange Act of 1934

of which such alternative trading system is a member has in

place such procedures.

‘‘(IX) The board of trade on which the security futures product is traded has in place audit trails necessary or appropriate

to facilitate the coordinated surveillance required in subclause

(VIII), except that, if the board of trade is an alternative trading system, a national securities association registered pursuant

to section 15A(a) of the Securities Exchange Act of 1934 or national securities exchange registered pursuant to section 6(a) of

the Securities Exchange Act of 1934 of which such alternative

trading system is a member has rules to require such audit

trails.

‘‘(X) The board of trade on which the security futures product is traded has in place procedures to coordinate trading

halts between such board of trade and markets on which any

security underlying the security futures product is traded and

other markets on which any related security is traded, except

that, if the board of trade is an alternative trading system, a

national securities association registered pursuant to section

15A(a) of the Securities Exchange Act of 1934 or national securities exchange registered pursuant to section 6(a) of the Securities Exchange Act of 1934 of which such alternative trading system is a member has rules to require such coordinated trading

halts.

‘‘(XI) The margin requirements for a security futures product comply with the regulations prescribed pursuant to section

7(c)(2)(B) of the Securities Exchange Act of 1934, except that

nothing in this subclause shall be construed to prevent a board

of trade from requiring higher margin levels for a security futures product when it deems such action to be necessary or appropriate.

‘‘(ii) It shall be unlawful for any person to offer, to enter into,

to execute, to confirm the execution of, or to conduct any office or

business anywhere in the United States, its territories or possessions, for the purpose of soliciting, or accepting any order for, or

otherwise dealing in, any transaction in, or in connection with, a security futures product unless—

‘‘(I) the transaction is conducted on or subject to the rules

of a board of trade that—

728

‘‘(aa) has been designated by the Commission as a contract market in such security futures product; or

‘‘(bb) is a registered derivatives transaction execution

facility for the security futures product that has provided a

certification with respect to the security futures product

pursuant to clause (vii);

‘‘(II) the contract is executed or consummated by, through,

or with a member of the contract market or registered derivatives transaction execution facility; and

‘‘(III) the security futures product is evidenced by a record

in writing which shows the date, the parties to such security futures product and their addresses, the property covered, and its

price, and each contract market member or registered derivatives transaction execution facility member shall keep the record

for a period of 3 years from the date of the transaction, or for

a longer period if the Commission so directs, which record shall

at all times be open to the inspection of any duly authorized

representative of the Commission.

‘‘(iii)(I) Except as provided in subclause (II) but notwithstanding any other provision of this Act, no person shall offer to

enter into, enter into, or confirm the execution of any option on a

security future.

‘‘(II) After 3 years after the date of the enactment of the Commodity Futures Modernization Act of 2000, the Commission and the

Securities and Exchange Commission may by order jointly determine to permit trading of options on any security future authorized

to be traded under the provisions of this Act and the Securities Exchange Act of 1934.

‘‘(iv)(I) All relevant records of a futures commission merchant or

introducing broker registered pursuant to section 4f(a)(2), floor

broker or floor trader exempt from registration pursuant to section

4f(a)(3), associated person exempt from registration pursuant to section 4k(6), or board of trade designated as a contract market in a

security futures product pursuant to section 5f shall be subject to

such reasonable periodic or special examinations by representatives

of the Commission as the Commission deems necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of this Act, and the Commission,

before conducting any such examination, shall give notice to the Securities and Exchange Commission of the proposed examination and

consult with the Securities and Exchange Commission concerning

the feasibility and desirability of coordinating the examination with

examinations conducted by the Securities and Exchange Commission in order to avoid unnecessary regulatory duplication or undue

regulatory burdens for the registrant or board of trade.

‘‘(II) The Commission shall notify the Securities and Exchange

Commission of any examination conducted of any futures commission merchant or introducing broker registered pursuant to section

4f(a)(2), floor broker or floor trader exempt from registration pursuant to section 4f(a)(3), associated person exempt from registration

pursuant to section 4k(6), or board of trade designated as a contract

market in a security futures product pursuant to section 5f, and,

upon request, furnish to the Securities and Exchange Commission

729

any examination report and data supplied to or prepared by the

Commission in connection with the examination.

‘‘(III) Before conducting an examination under subclause (I), the

Commission shall use the reports of examinations, unless the information sought is unavailable in the reports, of any futures commission merchant or introducing broker registered pursuant to section

4f(a)(2), floor broker or floor trader exempt from registration pursuant to section 4f(a)(3), associated person exempt from registration

pursuant to section 4k(6), or board of trade designated as a contract

market in a security futures product pursuant to section 5f that is

made by the Securities and Exchange Commission, a national securities association registered pursuant to section 15A(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78o–3(a)), or a national securities exchange registered pursuant to section 6(a) of the Securities

Exchange Act of 1934 (15 U.S.C. 78f(a)).

‘‘(IV) Any records required under this subsection for a futures

commission merchant or introducing broker registered pursuant to

section 4f(a)(2), floor broker or floor trader exempt from registration

pursuant to section 4f(a)(3), associated person exempt from registration pursuant to section 4k(6), or board of trade designated as a

contract market in a security futures product pursuant to section 5f,

shall be limited to records with respect to accounts, agreements, contracts, and transactions involving security futures products.

‘‘(v)(I) The Commission and the Securities and Exchange Commission, by rule, regulation, or order, may jointly modify the criteria specified in subclause (I) or (III) of clause (i), including the

trading of security futures based on securities other than equity securities, to the extent such modification fosters the development of

fair and orderly markets in security futures products, is necessary

or appropriate in the public interest, and is consistent with the protection of investors.

‘‘(II) The Commission and the Securities and Exchange Commission, by order, may jointly exempt any person from compliance

with the criterion specified in clause (i)(IV) to the extent such exemption fosters the development of fair and orderly markets in security

futures products, is necessary or appropriate in the public interest,

and is consistent with the protection of investors.

‘‘(vi)(I) Notwithstanding clauses (i) and (vii), until the compliance date, a board of trade shall not be required to meet the criterion specified in clause (i)(IV).

‘‘(II) The Commission and the Securities and Exchange Commission shall jointly publish in the Federal Register a notice of the

compliance date no later than 165 days before the compliance date.

‘‘(III) For purposes of this clause, the term ‘compliance date’

means the later of—

‘‘(aa) 180 days after the end of the first full calendar month

period in which the average aggregate comparable share volume

for all security futures products based on single equity securities traded on all designated contract markets and registered

derivatives transaction execution facilities equals or exceeds 10

percent of the average aggregate comparable share volume of

options on single equity securities traded on all national securities exchanges registered pursuant to section 6(a) of the SecuriVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00733 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.006 pfrm03 PsN: HR1033
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ties Exchange Act of 1934 and any national securities associations registered pursuant to section 15A(a) of such Act; or

‘‘(bb) 2 years after the date on which trading in any security futures product commences under this Act.

‘‘(vii) It shall be unlawful for a board of trade to trade or execute a security futures product unless the board of trade has provided the Commission with a certification that the specific security

futures product and the board of trade, as applicable, meet the criteria specified in subclauses (I) through (XI) of clause (i), except as

otherwise provided in clause (vi).’’.

(b) MARGIN ON SECURITY FUTURES.—Section 2(a)(1)(C)(vi) of

the Commodity Exchange Act (7 U.S.C. 2a(vi)) (as redesignated by

section 34) is amended—

(1) by redesignating subclause (V) as subclause (VI); and

(2) by striking ‘‘(vi)(I)’’ and all that follows through subclause (IV) and inserting the following:

‘‘(v)(I) Notwithstanding any other provision of this Act, any

contract market in a stock index futures contract (or option

thereon) other than a security futures product, or any derivatives transaction execution facility on which such contract or

option is traded, shall file with the Board of Governors of the

Federal Reserve System any rule establishing or changing the

levels of margin (initial and maintenance) for such stock index

futures contract (or option thereon) other than security futures

products.

‘‘(II) The Board may at any time request any contract market or derivatives transaction execution facility to set the margin for any stock index futures contract (or option thereon),

other than for any security futures product, at such levels as the

Board in its judgment determines are appropriate to preserve

the financial integrity of the contract market or derivatives

transaction execution facility, or its clearing system, or to prevent systemic risk. If the contract market or derivatives transaction execution facility fails to do so within the time specified

by the Board in its request, the Board may direct the contract

market or derivatives transaction execution facility to alter or

supplement the rules of the contract market or derivatives

transaction execution facility as specified in the request.

‘‘(III) Subject to such conditions as the Board may determine, the Board may delegate any or all of its authority, relating to margin for any stock index futures contract (or option

thereon), other than security futures products, under this clause

to the Commission.

‘‘(IV) It shall be unlawful for any futures commission merchant to, directly or indirectly, extend or maintain credit to or

for, or collect margin from any customer on any security futures

product unless such activities comply with the regulations prescribed pursuant to section 7(c)(2)(B) of the Securities Exchange

Act of 1934.

‘‘(V) Nothing in this clause shall supersede or limit the authority granted to the Commission in section 8a(9) to direct a

contract market or registered derivatives transaction execution

facility, on finding an emergency to exist, to raise temporary

731

margin levels on any futures contract, or option on the contract

covered by this clause, or on any security futures product.’’.

(c) DUAL TRADING.—Section 4j of the Commodity Exchange Act

(7 U.S.C. 6j) is amended to read as follows:

‘‘SEC. 4j. RESTRICTIONS ON DUAL TRADING IN SECURITY FUTURES

PRODUCTS ON DESIGNATED CONTRACT MARKETS AND

REGISTERED DERIVATIVES TRANSACTION EXECUTION FACILITIES.

‘‘(a) The Commission shall issue regulations to prohibit the

privilege of dual trading in security futures products on each contract market and registered derivatives transaction execution facility. The regulations issued by the Commission under this section—

‘‘(1) shall provide that the prohibition of dual trading

thereunder shall take effect upon issuance of the regulations;

and

‘‘(2) shall provide exceptions, as the Commission determines

appropriate, to ensure fairness and orderly trading in security

futures product markets, including—

‘‘(A) exceptions for spread transactions and the correction of trading errors;

‘‘(B) allowance for a customer to designate in writing

not less than once annually a named floor broker to execute

orders for such customer, notwithstanding the regulations

to prohibit the privilege of dual trading required under this

section; and

‘‘(C) other measures reasonably designed to accommodate unique or special characteristics of individual boards

of trade or contract markets, to address emergency or unusual market conditions, or otherwise to further the public

interest consistent with the promotion of market efficiency,

innovation, and expansion of investment opportunities, the

protection of investors, and with the purposes of this section.

‘‘(b) As used in this section, the term ‘dual trading’ means the

execution of customer orders by a floor broker during the same trading session in which the floor broker executes any trade in the same

contract market or registered derivatives transaction execution facility for—

‘‘(1) the account of such floor broker;

‘‘(2) an account for which such floor broker has trading discretion; or

‘‘(3) an account controlled by a person with whom such

floor broker has a relationship through membership in a broker

association.

‘‘(c) As used in this section, the term ‘broker association’ shall

include two or more contract market members or registered derivatives transaction execution facility members with floor trading privileges of whom at least one is acting as a floor broker, who—

‘‘(1) engage in floor brokerage activity on behalf of the same

employer,

‘‘(2) have an employer and employee relationship which relates to floor brokerage activity,

‘‘(3) share profits and losses associated with their brokerage

or trading activity, or

732

‘‘(4) regularly share a deck of orders.’’.

(d) EXEMPTION FROM REGISTRATION FOR INVESTMENT ADVISERS.—Section 4m of the Commodity Exchange Act (7 U.S.C. 6m) is

amended by adding at the end the following:

‘‘(3) Subsection (1) of this section shall not apply to any commodity trading advisor that is registered with the Securities and

Exchange Commission as an investment adviser whose business

does not consist primarily of acting as a commodity trading advisor,

as defined in section 1a(6), and that does not act as a commodity

trading advisor to any investment trust, syndicate, or similar form

of enterprise that is engaged primarily in trading in any commodity

for future delivery on or subject to the rules of any contract market

or registered derivatives transaction execution facility.’’.

(e) EXEMPTION FROM INVESTIGATIONS OF MARKETS IN UNDERLYING SECURITIES.—Section 16 of the Commodity Exchange Act (7

U.S.C. 20) is amended by adding at the end the following:

‘‘(e) This section shall not apply to investigations involving any

security underlying a security futures product.’’.

(f) RULEMAKING AUTHORITY TO ADDRESS DUPLICATIVE REGULATION OF DUAL REGISTRANTS.—Section 4d of the Commodity Exchange Act (7 U.S.C. 6d) is amended—

(1) by inserting ‘‘(a)’’ before the first undesignated paragraph;

(2) by inserting ‘‘(b)’’ before the second undesignated paragraph; and

(3) by adding at the end the following:

‘‘(c) Consistent with this Act, the Commission, in consultation

with the Securities and Exchange Commission, shall issue such

rules, regulations, or orders as are necessary to avoid duplicative or

conflicting regulations applicable to any futures commission merchant registered with the Commission pursuant to section 4f(a) (except paragraph (2) thereof), that is also registered with the Securities and Exchange Commission pursuant to section 15(b) of the Securities Exchange Act (except paragraph (11) thereof), involving the

application of—

‘‘(1) section 8, section 15(c)(3), and section 17 of the Securities Exchange Act of 1934 and the rules and regulations thereunder related to the treatment of customer funds, securities, or

property, maintenance of books and records, financial reporting

or other financial responsibility rules (as defined in section

3(a)(40) of the Securities Exchange Act of 1934), involving security futures products; and

‘‘(2) similar provisions of this Act and the rules and regulations thereunder involving security futures products.’’.

(g) OBLIGATION TO ADDRESS DUPLICATIVE REGULATION OF

DUAL REGISTRANTS.—Section 17 of the Commodity Exchange Act (7

U.S.C. 21) is amended by adding at the end the following:

‘‘(r) Consistent with this Act, each futures association registered

under this section shall issue such rules as are necessary to avoid

duplicative or conflicting rules applicable to any futures commission

merchant registered with the Commission pursuant to section 4f(a)

of this Act (except paragraph (2) thereof), that is also registered with

the Securities and Exchange Commission pursuant to section 15(b)

733

of the Securities and Exchange Act of 1934 (except paragraph (11)

thereof), with respect to the application of—

‘‘(1) rules of such futures association of the type specified in

section 4d(3) of this Act involving security futures products; and

‘‘(2) similar rules of national securities associations registered pursuant to section 15A(a) of the Securities and Exchange Act of 1934 involving security futures products.’’.

(h) OBLIGATION TO ADDRESS DUPLICATIVE REGULATION OF

DUAL REGISTRANTS.—Section 5c of the Commodity Exchange Act

(as added by section 114) is amended by adding at the end the following:

‘‘(f) Consistent with this Act, each designated contract market

and registered derivatives transaction execution facility shall issue

such rules as are necessary to avoid duplicative or conflicting rules

applicable to any futures commission merchant registered with the

Commission pursuant to section 4f(a) of this Act (except paragraph

(2) thereof), that is also registered with the Securities and Exchange

Commission pursuant to section 15(b) of the Securities Exchange

Act of 1934 (except paragraph (11) thereof) with respect to the application of—

‘‘(1) rules of such designated contract market or registered

derivatives transaction execution facility of the type specified in

section 4d(3) of this Act involving security futures products; and

‘‘(2) similar rules of national securities associations registered pursuant to section 15A(a) of the Securities Exchange

Act of 1934 and national securities exchanges registered pursuant to section 6(g) of such Act involving security futures products.’’.

(i) OBLIGATION TO ADDRESS SECURITY FUTURES PRODUCTS

TRADED ON FOREIGN EXCHANGES.—Section 2(a)(1) of the Commodity Exchange Act (7 U.S.C. 2, 2a, and 4) is amended by adding

at the end the following:

‘‘(E)(i) To the extent necessary or appropriate in the public interest, to promote fair competition, and consistent with promotion of

market efficiency, innovation, and expansion of investment opportunities, the protection of investors, and the maintenance of fair and

orderly markets, the Commission and the Securities and Exchange

Commission shall jointly issue such rules, regulations, or orders as

are necessary and appropriate to permit the offer and sale of a security futures product traded on or subject to the rules of a foreign

board of trade to United States persons.

‘‘(ii) The rules, regulations, or orders adopted under clause (i)

shall take into account, as appropriate, the nature and size of the

markets that the securities underlying the security futures product

reflects.’’.

(j) SECURITY FUTURES PRODUCTS TRADED ON FOREIGN BOARDS

OF TRADE.—Section 2(a)(1) of the Commodity Exchange Act (7

U.S.C. 2, 2a, and 4) is amended by adding at the end the following:

‘‘(F)(i) Nothing in this Act is intended to prohibit a futures commission merchant from carrying security futures products traded on

or subject to the rules of a foreign board of trade in the accounts

of persons located outside of the United States.

‘‘(ii) Nothing in this Act is intended to prohibit any eligible contract participant located in the United States from purchasing or

734

carrying securities futures products traded on or subject to the rules

of a foreign board of trade, exchange, or market to the same extent

such person may be authorized to purchase or carry other securities

traded on a foreign board of trade, exchange, or market so long as

any underlying security for such security futures products is traded

principally on, by, or through any exchange or market located outside the United States.’’.

SEC. 252. APPLICATION OF THE COMMODITY EXCHANGE ACT TO NATIONAL SECURITIES EXCHANGES AND NATIONAL SECURITIES ASSOCIATIONS THAT TRADE SECURITY FUTURES.

(a) NOTICE DESIGNATION OF NATIONAL SECURITIES EXCHANGES

AND NATIONAL SECURITIES ASSOCIATIONS.—The Commodity Exchange Act is amended by inserting after section 5e (7 U.S.C. 7b),

as redesignated by section 21(1), the following:

‘‘SEC. 5f. DESIGNATION OF SECURITIES EXCHANGES AND ASSOCIATIONS AS CONTRACT MARKETS.

‘‘(a) Any board of trade that is registered with the Securities

and Exchange Commission as a national securities exchange, is a

national securities association registered pursuant to section 15A(a)

of the Securities Exchange Act of 1934, or is an alternative trading

system shall be a designated contract market in security futures

products if—

‘‘(1) such national securities exchange, national securities

association, or alternative trading system lists or trades no

other contracts of sale for future delivery, except for security futures products;

‘‘(2) such national securities exchange, national securities

association, or alternative trading system files written notice

with the Commission in such form as the Commission, by rule,

may prescribe containing such information as the Commission,

by rule, may prescribe as necessary or appropriate in the public

interest or for the protection of customers; and

‘‘(3) the registration of such national securities exchange,

national securities association, or alternative trading system is

not suspended pursuant to an order by the Securities and Exchange Commission.

Such designation shall be effective contemporaneously with the submission of notice, in written or electronic form, to the Commission.

‘‘(b)(1) A national securities exchange, national securities association, or alternative trading system that is designated as a contract market pursuant to section 5f shall be exempt from the following provisions of this Act and the rules thereunder:

‘‘(A) Subsections (c), (e), and (g) of section 4c.

‘‘(B) Section 4j.

‘‘(C) Section 5.

‘‘(D) Section 5c.

‘‘(E) Section 6a.

‘‘(F) Section 8(d).

‘‘(G) Section 9(f).

‘‘(H) Section 16.

‘‘(2) An alternative trading system that is a designated contract

market under this section shall be required to be a member of a futures association registered under section 17 and shall be exempt

735

from any provision of this Act that would require such alternative

trading system to—

‘‘(A) set rules governing the conduct of subscribers other

than the conduct of such subscribers’ trading on such alternative trading system; or

‘‘(B) discipline subscribers other than by exclusion from

trading.

‘‘(3) To the extent that an alternative trading system is exempt

from any provision of this Act pursuant to paragraph (2) of this

subsection, the futures association registered under section 17 of

which the alternative trading system is a member shall set rules

governing the conduct of subscribers to the alternative trading system and discipline the subscribers.

‘‘(4)(A) Except as provided in subparagraph (B), but notwithstanding any other provision of this Act, the Commission, by rule,

regulation, or order, may conditionally or unconditionally exempt

any designated contract market in security futures subject to the

designation requirement of this section from any provision of this

Act or of any rule or regulation thereunder, to the extent such exemption is necessary or appropriate in the public interest and is

consistent with the protection of investors.

‘‘(B) The Commission shall, by rule or regulation, determine the

procedures under which an exemptive order under this section is

granted and may, in its sole discretion, decline to entertain any application for an order of exemption under this section.

‘‘(C) An alternative trading system shall not be deemed to be an

exchange for any purpose as a result of the designation of such alternative trading system as a contract market under this section.’’.

(b) NOTICE REGISTRATION OF CERTAIN SECURITIES BROKER–

DEALERS; EXEMPTION FROM REGISTRATION FOR CERTAIN SECURITIES BROKER–DEALERS.—Section 4f(a) of the Commodity Exchange

Act (7 U.S.C. 6f(a)) is amended—

(1) by inserting ‘‘(1)’’ after ‘‘(a)’’; and

(2) by adding at the end the following:

‘‘(2) Notwithstanding paragraph (1), and except as provided in

paragraph (3), any broker or dealer that is registered with the Securities and Exchange Commission shall be registered as a futures

commission merchant or introducing broker, as applicable, if—

‘‘(A) the broker or dealer limits its solicitation of orders, acceptance of orders, or execution of orders, or placing of orders

on behalf of others involving any contracts of sale of any commodity for future delivery, on or subject to the rules of any contract market or registered derivatives transaction execution facility to security futures products;

‘‘(B) the broker or dealer files written notice with the Commission in such form as the Commission, by rule, may prescribe

containing such information as the Commission, by rule, may

prescribe as necessary or appropriate in the public interest or

for the protection of investors;

‘‘(C) the registration of the broker or dealer is not suspended pursuant to an order of the Securities and Exchange

Commission; and

736

‘‘(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 CER- TAIN PROVISIONS OF THE COMMODITY EXCHANGE ACT.—Section

4f(a) of the Commodity Exchange Act (7 U.S.C. 6f(a)) is amended

by inserting after paragraph (3), as added by subsection (b) of this

section, the following:

‘‘(4)(A) A broker or dealer that is registered as a futures commission merchant or introducing broker pursuant to paragraph (2),

or that is a floor broker or floor trader exempt from registration

pursuant to paragraph (3), shall be exempt from the following provisions of this Act and the rules thereunder:

‘‘(i) Subsections (b), (d), (e), and (g) of section 4c.

‘‘(ii) Sections 4d, 4e, and 4h.

‘‘(iii) Subsections (b) and (c) of this section.

‘‘(iv) Section 4j.

‘‘(v) Section 4k(1).

‘‘(vi) Section 4p.

‘‘(vii) Section 6d.

‘‘(viii) Subsections (d) and (g) of section 8.

‘‘(ix) Section 16.

‘‘(B)(i) Except as provided in clause (ii) of this subparagraph,

but notwithstanding any other provision of this Act, the Commission, by rule, regulation, or order, may conditionally or unconditionally exempt any broker or dealer subject to the registration requirement of paragraph (2), or any broker or dealer exempt from registration pursuant to paragraph (3), from any provision of this Act

or of any rule or regulation thereunder, to the extent the exemption

is necessary or appropriate in the public interest and is consistent

with the protection of investors.

‘‘(ii) The Commission shall, by rule or regulation, determine the

procedures under which an exemptive order under this section shall

be granted and may, in its sole discretion, decline to entertain any

application for an order of exemption under this section.

‘‘(C)(i) A broker or dealer that is registered as a futures commission merchant or introducing broker pursuant to paragraph (2) or

an associated person thereof, or that is a floor broker or floor trader

exempt from registration pursuant to paragraph (3), shall not be reVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00740 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.006 pfrm03 PsN: HR1033
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quired to become a member of any futures association registered

under section 17.

‘‘(ii) No futures association registered under section 17 shall

limit its members from carrying an account, accepting an order, or

transacting business with a broker or dealer that is registered as a

futures commission merchant or introducing broker pursuant to

paragraph (2) or an associated person thereof, or that is a floor

broker or floor trader exempt from registration pursuant to paragraph (3).’’.

(d) EXEMPTIONS FOR ASSOCIATED PERSONS OF SECURITIES

BROKER-DEALERS.—Section 4k of the Commodity Exchange Act (7

U.S.C. 6k), is amended by inserting after paragraph (4), as added

by subsection (c) of this section, the following:

‘‘(5) Any associated person of a broker or dealer that is registered with the Securities and Exchange Commission, and who limits its solicitation of orders, acceptance of orders, or execution of orders, or placing of orders on behalf of others involving any contracts

of sale of any commodity for future delivery or any option on such

a contract, on or subject to the rules of any contract market or registered derivatives transaction execution facility to security futures

products, shall be exempt from the following provisions of this Act

and the rules thereunder:

‘‘(A) Subsections (b), (d), (e), and (g) of section 4c.

‘‘(B) Sections 4d, 4e, and 4h.

‘‘(C) Subsections (b) and (c) of section 4f.

‘‘(D) Section 4j.

‘‘(E) Paragraph (1) of this section.

‘‘(F) Section 4p.

‘‘(G) Section 6d.

‘‘(H) Subsections (d) and (g) of section 8.

‘‘(I) Section 16.’’.

SEC. 253. NOTIFICATION OF INVESTIGATIONS AND ENFORCEMENT ACTIONS.

(a) Section 8(a) of the Commodity Exchange Act (7 U.S.C. 12(a))

is amended by adding at the end the following:

‘‘(3) The Commission shall provide the Securities and Exchange

Commission with notice of the commencement of any proceeding

and a copy of any order entered by the Commission against any futures commission merchant or introducing broker registered pursuant to section 4f(a)(2), any floor broker or floor trader exempt from

registration pursuant to section 4f(a)(3), any associated person exempt from registration pursuant to section 4k(6), or any board of

trade designated as a contract market pursuant to section 5f.’’.

(b) Section 6 of the Commodity Exchange Act (7 U.S.C. 8, 9, 9a,

9b, 13b, 15) is amended by adding at the end the following:

‘‘(g) The Commission shall provide the Securities and Exchange

Commission with notice of the commencement of any proceeding

and a copy of any order entered by the Commission pursuant to subsections (c) and (d) of this section against any futures commission

merchant or introducing broker registered pursuant to section

4f(a)(2), any floor broker or floor trader exempt from registration

pursuant to section 4f(a)(3), any associated person exempt from registration pursuant to section 4k(6), or any board of trade designated

as a contract market pursuant to section 5f.’’.

738

(c) Section 6c of the Commodity Exchange Act (7 U.S.C. 13a–

1) is amended by adding at the end the following:

‘‘(h) The Commission shall provide the Securities and Exchange

Commission with notice of the commencement of any proceeding

and a copy of any order entered by the Commission against any futures commission merchant or introducing broker registered pursuant to section 4f(a)(2), any floor broker or floor trader exempt from

registration pursuant to section 4f(a)(3), any associated person exempt from registration pursuant to section 4k(6), or any board of

trade designated as a contract market pursuant to section 5f.’’.

TITLE III—LEGAL CERTAINTY FOR SWAP AGREEMENTS

SEC. 301. SWAP AGREEMENT.

(a) AMENDMENT.—Title II of the Gramm-Leach-Bliley Act (Public Law 106–102) is amended by inserting after section 206 the following new sections:

‘‘SEC. 206A. SWAP AGREEMENT.

‘‘(a) IN GENERAL.—Except as provided in subsection (b), as used

in this section, the term ‘swap agreement’ means any agreement,

contract, or transaction between eligible contract participants (as

defined in section 1a(12) of the Commodity Exchange Act as in effect

on the date of enactment of this section), other than a person that

is an eligible contract participant under section 1a(12)(C) of the

Commodity Exchange Act, the material terms of which (other than

price and quantity) are subject to individual negotiation, and that—

‘‘(1) is a put, call, cap, floor, collar, or similar option of any

kind for the purchase or sale of, or based on the value of, one

or more interest or other rates, currencies, commodities, indices,

quantitative measures, or other financial or economic interests

or property of any kind;

‘‘(2) provides for any purchase, sale, payment or delivery

(other than a dividend on an equity security) that is dependent

on the occurrence, non-occurrence, or the extent of the occurrence of an event or contingency associated with a potential financial, economic, or commercial consequence;

‘‘(3) provides on an executory basis for the exchange, on a

fixed or contingent basis, of one or more payments based on the

value or level of one or more interest or other rates, currencies,

commodities, securities, instruments of indebtedness, indices,

quantitative measures, or other financial or economic interests

or property of any kind, or any interest therein or based on the

value thereof, and that transfers, as between the parties to the

transaction, in whole or in part, the financial risk associated

with a future change in any such value or level without also

conveying a current or future direct or indirect ownership interest in an asset (including any enterprise or investment pool) or

liability that incorporates the financial risk so transferred, including any such agreement, contract, or transaction commonly

known as an interest rate swap, including a rate floor, rate cap,

rate collar, cross-currency rate swap, basis swap, currency

swap, equity index swap, equity swap, debt index swap, debt

swap, credit spread, credit default swap, credit swap, weather

swap, or commodity swap;

739

‘‘(4) provides for the purchase or sale, on a fixed or contingent basis, of any commodity, currency, instrument, interest,

right, service, good, article, or property of any kind; or

‘‘(5) is any combination or permutation of, or option on, any

agreement, contract, or transaction described in any of paragraphs (1) through (4).

‘‘(b) EXCLUSIONS.—The term ‘swap agreement’ does not

include—

‘‘(1) any put, call, straddle, option, or privilege on any security, certificate of deposit, or group or index of securities, including any interest therein or based on the value thereof;

‘‘(2) any put, call, straddle, option, or privilege entered into

on a national securities exchange registered pursuant to section

6(a) of the Securities Exchange Act of 1934 relating to foreign

currency;

‘‘(3) any agreement, contract, or transaction providing for

the purchase or sale of one or more securities on a fixed basis;

‘‘(4) any agreement, contract, or transaction providing for

the purchase or sale of one or more securities on a contingent

basis, unless such agreement, contract, or transaction predicates

such purchase or sale on the occurrence of a bona fide contingency that might reasonably be expected to affect or be affected

by the creditworthiness of a party other than a party to the

agreement, contract, or transaction;

‘‘(5) any note, bond, or evidence of indebtedness that is a security as defined in section 2(a)(1) of the Securities Exchange

Act of 1933 or section 3(a)(10) of the Securities Exchange Act

of 1934; or

‘‘(6) any agreement, contract, or transaction that is—

‘‘(A) based on a security; and

‘‘(B) entered into directly or through an underwriter (as

defined in section 2(a) of the Securities Act of 1933) by the

issuer of such security for the purposes of raising capital,

unless such agreement, contract, or transaction is entered

into to manage a risk associated with capital raising.

‘‘(c) RULE OF CONSTRUCTION REGARDING MASTER AGREEMENTS.—As used in this section, the term ‘swap agreement’ shall be

construed to include a master agreement that provides for an agreement, contract, or transaction that is a swap agreement pursuant to

subsections (a) and (b), together with all supplements to any such

master agreement, without regard to whether the master agreement

contains an agreement, contract, or transaction that is not a swap

agreement pursuant to subsections (a) and (b), except that the master agreement shall be considered to be a swap agreement only with

respect to each agreement, contract, or transaction under the master

agreement that is a swap agreement pursuant to subsections (a) and

(b).

‘‘SEC. 206B. SECURITY-BASED SWAP AGREEMENT.

‘‘As used in this section, the term ‘security-based swap agreement’ means a swap agreement (as defined in section 206A) of

which a material term is based on the price, yield, value, or volatility of any security or any group or index of securities, or any interest therein.

740

‘‘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 nonsecurity-based swap agreement (as defined in section 206C of the

Gramm-Leach-Bliley Act).

‘‘(b) SECURITY-BASED SWAP AGREEMENTS.—

‘‘(1) The definition of ‘security’ in section 2(a)(1) of this title

does not include any security-based swap agreement (as defined

in section 206B of the Gramm-Leach-Bliley Act).

‘‘(2) The Commission is prohibited from registering, or requiring, recommending, or suggesting, the registration under

this title of any security-based swap agreement (as defined in

section 206B of the Gramm-Leach-Bliley Act). If the Commission becomes aware that a registrant has filed a registration

statement with respect to such a swap agreement, the Commission shall promptly so notify the registrant. Any such registration statement with respect to such a swap agreement shall be

void and of no force or effect.

‘‘(3) The Commission is prohibited from—

‘‘(A) promulgating, interpreting, or enforcing rules; or

‘‘(B) issuing orders of general applicability;

under this title in a manner that imposes or specifies reporting

or recordkeeping requirements, procedures, or standards as prophylactic measures against fraud, manipulation, or insider

trading with respect to any security-based swap agreement (as

defined in section 206B of the Gramm-Leach-Bliley Act).

‘‘(4) References in this title to the ‘purchase’ or ‘sale’ of a security-based swap agreement shall be deemed to mean the execution, termination (prior to its scheduled maturity date), assignment, exchange, or similar transfer or conveyance of, or extinguishing of rights or obligations under, a security-based

swap agreement (as defined in section 206B of the GrammLeach-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

741

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 nonsecurity-based swap agreement (as defined in section 206C of the

Gramm-Leach-Bliley Act).

‘‘(b) SECURITY-BASED SWAP AGREEMENTS.— ‘‘(1) The definition of ‘security’ in section 3(a)(10) of this

title does not include any security-based swap agreement (as defined in section 206B of the Gramm-Leach-Bliley Act).

‘‘(2) The Commission is prohibited from registering, or requiring, recommending, or suggesting, the registration under

this title of any security-based swap agreement (as defined in

section 206B of the Gramm-Leach-Bliley Act). If the Commission becomes aware that a registrant has filed a registration

application with respect to such a swap agreement, the Commission shall promptly so notify the registrant. Any such registration with respect to such a swap agreement shall be void

and of no force or effect.

‘‘(3) Except as provided in section 16(a) with respect to reporting requirements, the Commission is prohibited from—

‘‘(A) promulgating, interpreting, or enforcing rules; or

‘‘(B) issuing orders of general applicability;

under this title in a manner that imposes or specifies reporting

or recordkeeping requirements, procedures, or standards as prophylactic measures against fraud, manipulation, or insider

trading with respect to any security-based swap agreement (as

defined in section 206B of the Gramm-Leach-Bliley Act).

‘‘(4) References in this title to the ‘purchase’ or ‘sale’ of a security-based swap agreement (as defined in section 206B of the

Gramm-Leach-Bliley Act) shall be deemed to mean the execution, termination (prior to its scheduled maturity date), assignment, exchange, or similar transfer or conveyance of, or extinVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00745 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.006 pfrm03 PsN: HR1033
742

guishing 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 securitybased swap agreement (as defined in section 206B of the GrammLeach-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 securitybased swap agreement (as defined in section 206B of the GrammLeach-Bliley Act) with respect to such security, to make, regarding

any security registered on a national securities exchange or any security-based swap agreement (as defined in section 206B of the

Gramm-Leach-Bliley Act) with respect to such security, for the purpose of inducing the purchase or sale of such security or such security-based swap agreement, any statement which was at the time

and in the light of the circumstances under which it was made,

false or misleading with respect to any material fact, and which he

knew or had reasonable ground to believe was so false or misleading.

‘‘(5) For a consideration, received directly or indirectly from a

dealer or broker, or other person selling or offering for sale or purchasing or offering to purchase the security or a security-based swap

agreement (as defined in section 206B of the Gramm-Leach-Bliley

Act) with respect to such security, to induce the purchase of any security registered on a national securities exchange or any securitybased swap agreement (as defined in section 206B of the GrammLeach-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:

743

‘‘(i) The authority of the Commission under this section with respect to security-based swap agreements shall be subject to the restrictions and limitations of section 3A(b) of this title.’’.

(d) REGULATIONS ON THE USE OF MANIPULATIVE AND DECEPTIVE DEVICES.—Section 10 of the Securities Exchange Act of 1934

(15 U.S.C. 78j) is amended—

(1) in subsection (b), by inserting ‘‘or any securities-based

swap agreement (as defined in section 206B of the GrammLeach-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 securitybased swap agreements (as defined in section 206B of the GrammLeach-Bliley Act) to the same extent as they apply to securities.’’.

(e) BROKER, DEALER ANTI-FRAUD, ANTI-MANIPULATION ENFORCEMENT AUTHORITY.—Section 15(c)(1) of the Securities Exchange Act of 1934 (15 U.S.C. 78o(c)(1)) is amended to read as follows:

‘‘(c)(1)(A) No broker or dealer shall make use of the mails or

any means or instrumentality of interstate commerce to effect any

transaction in, or to induce or attempt to induce the purchase or

sale of, any security (other than commercial paper, bankers’ acceptances, or commercial bills) otherwise than on a national securities

exchange of which it is a member, or any security-based swap agreement (as defined in section 206B of the Gramm-Leach-Bliley Act),

by means of any manipulative, deceptive, or other fraudulent device

or contrivance.

‘‘(B) No municipal securities dealer shall make use of the mails

or any means or instrumentality of interstate commerce to effect any

transaction in, or to induce or attempt to induce the purchase or

sale of, any municipal security or any security-based swap agreement (as defined in section 206B of the Gramm-Leach-Bliley Act) involving a municipal security by means of any manipulative, deceptive, or other fraudulent device or contrivance.

‘‘(C) No government securities broker or government securities

dealer shall make use of the mails or any means or instrumentality

of interstate commerce to effect any transaction in, or to induce or

to attempt to induce the purchase or sale of, any government security or any security-based swap agreement (as defined in section

206B of the Gramm-Leach-Bliley Act) involving a government security by means of any manipulative, deceptive, or other fraudulent

device or contrivance.’’.

744

(f) LIMITATION.—Section 15 of the Securities Exchange Act of

1934 (15 U.S.C. 78o) is amended by adding at the end the following

new subsection:

‘‘(i) The authority of the Commission under this section with respect to security-based swap agreements (as defined in section 206B

of the Gramm-Leach-Bliley Act) shall be subject to the restrictions

and limitations of section 3A(b) of this title.’’.

(g) ANTI-INSIDER TRADING ENFORCEMENT AUTHORITY.—Subsections (a) and (b) of section 16 (15 U.S.C. 78p(a), (b)) of the Securities Exchange of 1934 are amended to read as follows:

‘‘(a) Every person who is directly or indirectly the beneficial

owner of more than 10 per centum of any class of any equity security (other than an exempted security) which is registered pursuant

to section 12 of this title, or who is a director or an officer of the

issuer of such security, shall file, at the time of the registration of

such security on a national securities exchange or by the effective

date of a registration statement filed pursuant to section 12 (g) of

this title, or within ten days after he becomes such beneficial owner,

director, or officer, a statement with the Commission (and, if such

security is registered on a national securities exchange, also with the

exchange) of the amount of all equity securities of such issuer of

which he is the beneficial owner, and within ten days after the close

of each calendar month thereafter, if there has been a change in

such ownership or if such person shall have purchased or sold a security-based swap agreement (as defined in section 206B of the

Gramm-Leach-Bliley Act) involving such equity security during

such month, shall file with the Commission (and if such security is

registered on a national securities exchange, shall also file with the

exchange), a statement indicating his ownership at the close of the

calendar month and such changes in his ownership and such purchases and sales of such security-based swap agreements as have occurred during such calendar month.

‘‘(b) For the purpose of preventing the unfair use of information

which may have been obtained by such beneficial owner, director,

or officer by reason of his relationship to the issuer, any profit realized by him from any purchase and sale, or any sale and purchase,

of any equity security of such issuer (other than an exempted security) or a security-based swap agreement (as defined in section 206B

of the Gramm-Leach-Bliley Act) involving any such equity security

within any period of less than six months, unless such security or

security-based swap agreement was acquired in good faith in connection with a debt previously contracted, shall inure to and be recoverable by the issuer, irrespective of any intention on the part of

such beneficial owner, director, or officer in entering into such

transaction of holding the security or security-based swap agreement purchased or of not repurchasing the security or security-based

swap agreement sold for a period exceeding six months. Suit to recover such profit may be instituted at law or in equity in any court

of competent jurisdiction by the issuer, or by the owner of any security of the issuer in the name and in behalf of the issuer if the issuer

shall fail or refuse to bring such suit within sixty days after request

or shall fail diligently to prosecute the same thereafter; but no such

suit shall be brought more than two years after the date such profit

was realized. This subsection shall not be construed to cover any

745

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 securitybased swap agreement (as defined in section 206B of the GrammLeach-Bliley Act)’’.

(l) LIMITATION.—Section 21A of the Securities Exchange Act of

1934 (15 U.S.C. 78u–1) is amended by adding at the end the following new subsection:

‘‘(g) The authority of the Commission under this section with respect to security-based swap agreements (as defined in section 206B

of the Gramm-Leach-Bliley Act) shall be subject to the restrictions

and limitations of section 3A(b) of this title.’’.

SEC. 304. SAVINGS PROVISIONS.

Nothing in this Act or the amendments made by this Act shall

be construed as finding or implying that any swap agreement is or

is not a security for any purpose under the securities laws. Nothing

in this Act or the amendments made by this Act shall be construed

as finding or implying that any swap agreement is or is not a futures contract or commodity option for any purpose under the Commodity Exchange Act.

746

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-LeachBliley Act, except that in applying such section for purposes of this

title—

(1) the term ‘‘bank’’ shall have the meaning given in subsection (a) of this section; and

(2) the term ‘‘qualified investor’’ means eligible contract

participant (as defined in section 1a(12) of the Commodity Exchange Act, as in effect on the date of enactment of the Commodity Futures Modernization Act of 2000).

(c) HYBRID INSTRUMENT.—In this title, the term ‘‘hybrid instrument’’ means an identified banking product not excluded by section

403 of this Act, offered by a bank, having 1 or more payments indexed to the value, level, or rate of, or providing for the delivery of,

1 or more commodities (as defined in section 1a(4) of the Commodity Exchange Act).

(d) COVERED SWAP AGREEMENT.—In this title, the term ‘‘covered

swap agreement’’ means a swap agreement (as defined in section

206(b) of the Gramm-Leach-Bliley Act), including a credit or equity

swap, based on a commodity other than an agricultural commodity

enumerated in section 1a(4) of the Commodity Exchange Act if—

(1) the swap agreement—

(A) is entered into only between persons that are eligible contract participants (as defined in section 1a(12) of the

Commodity Exchange Act, as in effect on the date of enactment of the Commodity Futures Modernization Act of 2000)

at the time the persons enter into the swap agreement; and

747

(B) is not entered into or executed on a trading facility

(as defined in section 1a(33) of the Commodity Exchange

Act); or

(2) the swap agreement—

(A) is entered into or executed on an electronic trading

facility (as defined in section 1a(10) of the Commodity Exchange Act);

(B) is entered into on a principal-to-principal basis between parties trading for their own accounts or as described in section 1a(12)(B)(ii) of the Commodity Exchange

Act;

(C) is entered into only between persons that are eligible contract participants as described in subparagraphs

(A), (B)(ii), or (C) of section 1a(12) of the Commodity Exchange Act, as in effect on the date of enactment of the

Commodity Futures Modernization Act of 2000, at the time

the persons enter into the swap agreement; and

(D) is an agreement, contract or transaction in an excluded commodity (as defined in section 1a(13) of the Commodity Exchange Act).

SEC. 403. EXCLUSION OF IDENTIFIED BANKING PRODUCTS COMMONLY

OFFERED ON OR BEFORE DECEMBER 5, 2000.

No provision of the Commodity Exchange Act shall apply to,

and the Commodity Futures Trading Commission shall not exercise

regulatory authority with respect to, an identified banking product

if—

(1) an appropriate banking agency certifies that the product

has been commonly offered, entered into, or provided in the

United States by any bank on or before December 5, 2000,

under applicable banking law; and

(2) the product was not prohibited by the Commodity Exchange Act and not regulated by the Commodity Futures Trading Commission as a contract of sale of a commodity for future

delivery (or an option on such a contract) or an option on a

commodity, on or before December 5, 2000.

SEC. 404. EXCLUSION OF CERTAIN IDENTIFIED BANKING PRODUCTS

OFFERED BY BANKS AFTER DECEMBER 5, 2000.

No provision of the Commodity Exchange Act shall apply to,

and the Commodity Futures Trading Commission shall not exercise

regulatory authority with respect to, an identified banking product

which had not been commonly offered, entered into, or provided in

the United States by any bank on or before December 5, 2000, under

applicable banking law if—

(1) the product has no payment indexed to the value, level,

or rate of, and does not provide for the delivery of, any commodity (as defined in section 1a(4) of the Commodity Exchange

Act); or

(2) the product or commodity is otherwise excluded from the

Commodity Exchange Act.

SEC. 405. EXCLUSION OF CERTAIN OTHER IDENTIFIED BANKING

PRODUCTS.

(a) IN GENERAL.—No provision of the Commodity Exchange Act

shall apply to, and the Commodity Futures Trading Commission

748

shall not exercise regulatory authority with respect to, a banking

product if the product is a hybrid instrument that is predominantly

a banking product under the predominance test set forth in subsection (b).

(b) PREDOMINANCE TEST.—A hybrid instrument shall be considered to be predominantly a banking product for purposes of this section if—

(1) the issuer of the hybrid instrument receives payment in

full of the purchase price of the hybrid instrument substantially

contemporaneously with delivery of the hybrid instrument;

(2) the purchaser or holder of the hybrid instrument is not

required to make under the terms of the instrument, or any arrangement referred to in the instrument, any payment to the

issuer in addition to the purchase price referred to in paragraph (1), whether as margin, settlement payment, or otherwise

during the life of the hybrid instrument or at maturity;

(3) the issuer of the hybrid instrument is not subject by the

terms of the instrument to mark-to-market margining requirements; and

(4) the hybrid instrument is not marketed as a contract of

sale of a commodity for future delivery (or option on such a contract) subject to the Commodity Exchange Act.

(c) MARK-TO-MARKET MARGINING REQUIREMENT.—For purposes

of subsection (b)(3), mark-to-market margining requirements shall

not include the obligation of an issuer of a secured debt instrument

to increase the amount of collateral held in pledge for the benefit of

the purchaser of the secured debt instrument to secure the repayment obligations of the issuer under the secured debt instrument.

SEC. 406. ADMINISTRATION OF THE PREDOMINANCE TEST.

(a) IN GENERAL.—No provision of the Commodity Exchange Act

shall apply to, and the Commodity Futures Trading Commission

shall not regulate, a hybrid instrument, unless the Commission determines, by or under a rule issued in accordance with this section,

that—

(1) the action is necessary and appropriate in the public interest;

(2) the action is consistent with the Commodity Exchange

Act and the purposes of the Commodity Exchange Act; and

(3) the hybrid instrument is not predominantly a banking

product under the predominance test set forth in section 405(b)

of this Act.

(b) CONSULTATION.—Before commencing a rulemaking or making a determination pursuant to a rule issued under this title, the

Commodity Futures Trading Commission shall consult with and

seek the concurrence of the Board of Governors of the Federal Reserve System concerning—

(1) the nature of the hybrid instrument; and

(2) the history, purpose, extent, and appropriateness of the

regulation of the hybrid instrument under the Commodity Exchange Act and under appropriate banking laws.

(c) OBJECTION TO COMMISSION REGULATION.—

(1) FILING OF PETITION FOR REVIEW.—The Board of Governors of the Federal Reserve System may obtain review of any

rule or determination referred to in subsection (a) in the United

749

States Court of Appeals for the District of Columbia Circuit by

filing in the court, not later than 60 days after the date of publication of the rule or determination, a written petition requesting that the rule or determination be set aside. Any proceeding

to challenge any such rule or determination shall be expedited

by the court.

(2) TRANSMITTAL OF PETITION AND RECORD.—A copy of a

petition described in paragraph (1) shall be transmitted as soon

as possible by the Clerk of the court to an officer or employee

of the Commodity Futures Trading Commission designated for

that purpose. Upon receipt of the petition, the Commission shall

file with the court the rule or determination under review and

any documents referred to therein, and any other relevant materials prescribed by the court.

(3) EXCLUSIVE JURISDICTION.—On the date of the filing of

a petition under paragraph (1), the court shall have jurisdiction, which shall become exclusive on the filing of the materials

set forth in paragraph (2), to affirm and enforce or to set aside

the rule or determination at issue.

(4) STANDARD OF REVIEW.—The court shall determine to affirm and enforce or set aside a rule or determination of the

Commodity Futures Trading Commission under this section,

based on the determination of the court as to whether—

(A) the subject product is predominantly a banking

product; and

(B) making the provision or provisions of the Commodity Exchange Act at issue applicable to the subject instrument is appropriate in light of the history, purpose, and

extent of regulation under such Act, this title, and under

the appropriate banking laws, giving deference neither to

the views of the Commodity Futures Trading Commission

nor the Board of Governors of the Federal Reserve System.

(5) JUDICIAL STAY.—The filing of a petition by the Board

pursuant to paragraph (1) shall operate as a judicial stay, until

the date on which the determination of the court is final (including any appeal of the determination).

(6) OTHER AUTHORITY TO CHALLENGE.—Any aggrieved

party may seek judicial review pursuant to section 6(c) of the

Commodity Exchange Act of a determination or rulemaking by

the Commodity Futures Trading Commission under this section.

SEC. 407. EXCLUSION OF COVERED SWAP AGREEMENTS.

No provision of the Commodity Exchange Act (other than section 5b of such Act with respect to the clearing of covered swap

agreements) shall apply to, and the Commodity Futures Trading

Commission shall not exercise regulatory authority with respect to,

a covered swap agreement offered, entered into, or provided by a

bank.

SEC. 408. CONTRACT ENFORCEMENT.

(a) HYBRID INSTRUMENTS.—No hybrid instrument shall be void,

voidable, or unenforceable, and no party to a hybrid instrument

shall be entitled to rescind, or recover any payment made with respect to, a hybrid instrument under any provision of Federal or

750

State law, based solely on the failure of the hybrid instrument to

satisfy the predominance test set forth in section 405(b) of this Act

or to comply with the terms or conditions of an exemption or exclusion from any provision of the Commodity Exchange Act or any regulation of the Commodity Futures Trading Commission.

(b) COVERED SWAP AGREEMENTS.—No covered swap agreement

shall be void, voidable, or unenforceable, and no party to a covered

swap agreement shall be entitled to rescind, or recover any payment

made with respect to, a covered swap agreement under any provision of Federal or State law, based solely on the failure of the covered swap agreement to comply with the terms or conditions of an

exemption or exclusion from any provision of the Commodity Exchange Act or any regulation of the Commodity Futures Trading

Commission.

(c) PREEMPTION.—This title shall supersede and preempt the

application of any State or local law that prohibits or regulates

gaming or the operation of bucket shops (other than antifraud provisions of general applicability) in the case of—

(1) a hybrid instrument that is predominantly a banking

product; or

(2) a covered swap agreement.

MEDICARE, MEDICAID, AND SCHIP BENEFITS

IMPROVEMENT AND PROTECTION ACT OF 2000

The conference agreement would enact the provisions of H.R.

5661, as introduced on December 14, 2000. The text of that bill follows:

A BILL To amend titles XVIII, XIX, and XXI of the Social Security Act to provide

benefits improvements and beneficiary protections in the Medicare and Medicaid

Programs and the State child health insurance program (SCHIP), as revised by

the Balanced Budget Act of 1997 and the Medicare, Medicaid, and SCHIP Balanced Budget Refinement Act of 1999, and for other purposes.

Be it enacted by the Senate and House of Representatives of the

United States of America in Congress assembled,

SECTION 1. SHORT TITLE; AMENDMENTS TO SOCIAL SECURITY ACT;

REFERENCES TO OTHER ACTS; TABLE OF CONTENTS.

(a) SHORT TITLE.—This Act may be cited as the ‘‘Medicare,

Medicaid, and SCHIP Benefits Improvement and Protection Act of

2000’’.

(b) AMENDMENTS TO SOCIAL SECURITY ACT.—Except as otherwise specifically provided, whenever in this Act an amendment is

expressed in terms of an amendment to or repeal of a section or

other provision, the reference shall be considered to be made to that

section or other provision of the Social Security Act.

(c) REFERENCES TO OTHER ACTS.—In this Act:

(1) BALANCED BUDGET ACT OF 1997.—The term ‘‘BBA’’

means the Balanced Budget Act of 1997 (Public Law 105–33;

111 Stat. 251).

(2) MEDICARE, MEDICAID, AND SCHIP BALANCED BUDGET REFINEMENT ACT OF 1999.—The term ‘‘BBRA’’ means the Medicare,

Medicaid, and SCHIP Balanced Budget Refinement Act of 1999

(Appendix F, 113 Stat. 1501A–321), as enacted into law by section 1000(a)(6) of Public Law 106–113.

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(d) TABLE OF CONTENTS.—The table of contents of this Act is

as follows:

Sec. 1. Short title; amendments to Social Security Act; references to other Acts; table

of contents.

TITLE I—MEDICARE BENEFICIARY IMPROVEMENTS

Subtitle A—Improved Preventive Benefits

Sec. 101. Coverage of biennial screening pap smear and pelvic exams.

Sec. 102. Coverage of screening for glaucoma.

Sec. 103. Coverage of screening colonoscopy for average risk individuals.

Sec. 104. Modernization of screening mammography benefit.

Sec. 105. Coverage of medical nutrition therapy services for beneficiaries with diabetes or a renal disease.

Subtitle B—Other Beneficiary Improvements

Sec. 111. Acceleration of reduction of beneficiary copayment for hospital outpatient

department services.

Sec. 112. Preservation of coverage of drugs and biologicals under part B of the medicare program.

Sec. 113. Elimination of time limitation on medicare benefits for immunosuppressive drugs.

Sec. 114. Imposition of billing limits on drugs.

Sec. 115. Waiver of 24-month waiting period for medicare coverage of individuals

disabled with amyotrophic lateral sclerosis (ALS).

Subtitle C—Demonstration Projects and Studies

Sec. 121. Demonstration project for disease management for severely chronically ill

medicare beneficiaries.

Sec. 122. Cancer prevention and treatment demonstration for ethnic and racial minorities.

Sec. 123. Study on medicare coverage of routine thyroid screening.

Sec. 124. MedPAC study on consumer coalitions.

Sec. 125. Study on limitation on State payment for medicare cost-sharing affecting

access to services for qualified medicare beneficiaries.

Sec. 126. Studies on preventive interventions in primary care for older Americans.

Sec. 127. MedPAC study and report on medicare coverage of cardiac and pulmonary

rehabilitation therapy services.

Sec. 128. Lifestyle modification program demonstration.

TITLE II—RURAL HEALTH CARE IMPROVEMENTS

Subtitle A—Critical Access Hospital Provisions

Sec. 201. Clarification of no beneficiary cost-sharing for clinical diagnostic laboratory tests furnished by critical access hospitals.

Sec. 202. Assistance with fee schedule payment for professional services under allinclusive rate.

Sec. 203. Exemption of critical access hospital swing beds from SNF PPS.

Sec. 204. Payment in critical access hospitals for emergency room on-call physicians.

Sec. 205. Treatment of ambulance services furnished by certain critical access hospitals.

Sec. 206. GAO study on certain eligibility requirements for critical access hospitals.

Subtitle B—Other Rural Hospitals Provisions

Sec. 211. Treatment of rural disproportionate share hospitals.

Sec. 212. Option to base eligibility for medicare dependent, small rural hospital program on discharges during 2 of the 3 most recently audited cost reporting periods.

Sec. 213. Extension of option to use rebased target amounts to all sole community

hospitals.

Sec. 214. MedPAC analysis of impact of volume on per unit cost of rural hospitals

with psychiatric units.

Subtitle C—Other Rural Provisions

Sec. 221. Assistance for providers of ambulance services in rural areas.

Sec. 222. Payment for certain physician assistant services.

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Sec. 223. Revision of medicare reimbursement for telehealth services.

Sec. 224. Expanding access to rural health clinics.

Sec. 225. MedPAC study on low-volume, isolated rural health care providers.

TITLE III—PROVISIONS RELATING TO PART A

Subtitle A—Inpatient Hospital Services

Sec. 301. Revision of acute care hospital payment update for 2001.

Sec. 302. Additional modification in transition for indirect medical education (IME)

percentage adjustment.

Sec. 303. Decrease in reductions for disproportionate share hospital (DSH) payments.

Sec. 304. Wage index improvements.

Sec. 305. Payment for inpatient services of rehabilitation hospitals.

Sec. 306. Payment for inpatient services of psychiatric hospitals.

Sec. 307. Payment for inpatient services of long-term care hospitals.

Subtitle B—Adjustments to PPS Payments for Skilled Nursing Facilities

Sec. 311. Elimination of reduction in skilled nursing facility (SNF) market basket

update in 2001.

Sec. 312. Increase in nursing component of PPS Federal rate.

Sec. 313. Application of SNF consolidated billing requirement limited to part A covered stays.

Sec. 314. Adjustment of rehabilitation RUGs to correct anomaly in payment rates.

Sec. 315. Establishment of process for geographic reclassification.

Subtitle C—Hospice Care

Sec. 321. 5 percent increase in payment base.

Sec. 322. Clarification of physician certification.

Sec. 323. MedPAC report on access to, and use of, hospice benefit.

Subtitle D—Other Provisions

Sec. 331. Relief from medicare part A late enrollment penalty for group buy-in for

State and local retirees.

TITLE IV—PROVISIONS RELATING TO PART B

Subtitle A—Hospital Outpatient Services

Sec. 401. Revision of hospital outpatient PPS payment update.

Sec. 402. Clarifying process and standards for determining eligibility of devices for

pass-through payments under hospital outpatient PPS.

Sec. 403. Application of OPD PPS transitional corridor payments to certain hospitals that did not submit a 1996 cost report.

Sec. 404. Application of rules for determining provider-based status for certain entities.

Sec. 405. Treatment of children’s hospitals under prospective payment system.

Sec. 406. Inclusion of temperature monitored cryoablation in transitional passthrough for certain medical devices, drugs, and biologicals under OPD

PPS.

Subtitle B—Provisions Relating to Physicians’ Services

Sec. 411. GAO studies relating to physicians’ services.

Sec. 412. Physician group practice demonstration.

Sec. 413. Study on enrollment procedures for groups that retain independent contractor physicians.

Subtitle C—Other Services

Sec. 421. 1-year extension of moratorium on therapy caps; report on standards for

supervision of physical therapy assistants.

Sec. 422. Update in renal dialysis composite rate.

Sec. 423. Payment for ambulance services.

Sec. 424. Ambulatory surgical centers.

Sec. 425. Full update for durable medical equipment.

Sec. 426. Full update for orthotics and prosthetics.

Sec. 427. Establishment of special payment provisions and requirements for prosthetics and certain custom-fabricated orthotic items.

Sec. 428. Replacement of prosthetic devices and parts.

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Sec. 429. Revised part B payment for drugs and biologicals and related services.

Sec. 430. Contrast enhanced diagnostic procedures under hospital prospective payment system.

Sec. 431. Qualifications for community mental health centers.

Sec. 432. Payment of physician and nonphysician services in certain Indian providers.

Sec. 433. GAO study on coverage of surgical first assisting services of certified registered nurse first assistants.

Sec. 434. MedPAC study and report on medicare reimbursement for services provided by certain providers.

Sec. 435. MedPAC study and report on medicare coverage of services provided by

certain nonphysician providers.

Sec. 436. GAO study and report on the costs of emergency and medical transportation services.

Sec. 437. GAO studies and reports on medicare payments.

Sec. 438. MedPAC study on access to outpatient pain management services.

TITLE V—PROVISIONS RELATING TO PARTS A AND B

Subtitle A—Home Health Services

Sec. 501. 1-year additional delay in application of 15 percent reduction on payment

limits for home health services.

Sec. 502. Restoration of full home health market basket update for home health

services for fiscal year 2001.

Sec. 503. Temporary two-month periodic interim payment.

Sec. 504. Use of telehealth in delivery of home health services.

Sec. 505. Study on costs to home health agencies of purchasing nonroutine medical

supplies.

Sec. 506. Treatment of branch offices; GAO study on supervision of home health care

provided in isolated rural areas.

Sec. 507. Clarification of the homebound definition under the medicare home health

benefit.

Sec. 508. Temporary increase for home health services furnished in a rural area.

Subtitle B—Direct Graduate Medical Education

Sec. 511. Increase in floor for direct graduate medical education payments.

Sec. 512. Change in distribution formula for Medicare+Choice-related nursing and

allied health education costs.

Subtitle C—Changes in Medicare Coverage and Appeals Process

Sec. 521. Revisions to medicare appeals process.

Sec. 522. Revisions to medicare coverage process.

Subtitle D—Improving Access to New Technologies

Sec. 531. Reimbursement improvements for new clinical laboratory tests and durable medical equipment.

Sec. 532. Retention of HCPCS level III codes.

Sec. 533. Recognition of new medical technologies under inpatient hospital PPS.

Subtitle E—Other Provisions

Sec. 541. Increase in reimbursement for bad debt.

Sec. 542. Treatment of certain physician pathology services under medicare.

Sec. 543. Extension of advisory opinion authority.

Sec. 544. Change in annual MedPAC reporting.

Sec. 545. Development of patient assessment instruments.

Sec. 546. GAO report on impact of the Emergency Medical Treatment and Active

Labor Act (EMTALA) on hospital emergency departments.

Sec. 547. Clarification of application of temporary payment increases for 2001.

TITLE VI—PROVISIONS RELATING TO PART C (MEDICARE+CHOICE

PROGRAM) AND OTHER MEDICARE MANAGED CARE PROVISIONS

Subtitle A—Medicare+Choice Payment Reforms

Sec. 601. Increase in minimum payment amount.

Sec. 602. Increase in minimum percentage increase.

Sec. 603. Phase-in of risk adjustment.

Sec. 604. Transition to revised Medicare+Choice payment rates.

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Sec. 605. Revision of payment rates for ESRD patients enrolled in Medicare+Choice

plans.

Sec. 606. Permitting premium reductions as additional benefits under

Medicare+Choice plans.

Sec. 607. Full implementation of risk adjustment for congestive heart failure enrollees for 2001.

Sec. 608. Expansion of application of Medicare+Choice new entry bonus.

Sec. 609. Report on inclusion of certain costs of the Department of Veterans Affairs

and military facility services in calculating Medicare+Choice payment

rates.

Subtitle B—Other Medicare+Choice Reforms

Sec. 611. Payment of additional amounts for new benefits covered during a contract

term.

Sec. 612. Restriction on implementation of significant new regulatory requirements

midyear.

Sec. 613. Timely approval of marketing material that follows model marketing language.

Sec. 614. Avoiding duplicative regulation.

Sec. 615. Election of uniform local coverage policy for Medicare+Choice plan covering multiple localities.

Sec. 616. Eliminating health disparities in Medicare+Choice program.

Sec. 617. Medicare+Choice program compatibility with employer or union group

health plans.

Sec. 618. Special medigap enrollment antidiscrimination provision for certain beneficiaries.

Sec. 619. Restoring effective date of elections and changes of elections of

Medicare+Choice plans.

Sec. 620. Permitting ESRD beneficiaries to enroll in another Medicare+Choice plan

if the plan in which they are enrolled is terminated.

Sec. 621. Providing choice for skilled nursing facility services under the

Medicare+Choice program.

Sec. 622. Providing for accountability of Medicare+Choice plans.

Sec. 623. Increased civil money penalty for Medicare+Choice organizations that terminate contracts mid-year.

Subtitle C—Other Managed Care Reforms

Sec. 631. 1-year extension of social health maintenance organization (SHMO) demonstration project.

Sec. 632. Revised terms and conditions for extension of medicare community nursing

organization (CNO) demonstration project.

Sec. 633. Extension of medicare municipal health services demonstration projects.

Sec. 634. Service area expansion for medicare cost contracts during transition period.

TITLE VII—MEDICAID

Sec. 701. DSH payments.

Sec. 702. New prospective payment system for Federally-qualified health centers and

rural health clinics.

Sec. 703. Streamlined approval of continued State-wide section 1115 medicaid waivers.

Sec. 704. Medicaid county-organized health systems.

Sec. 705. Deadline for issuance of final regulation relating to medicaid upper payment limits.

Sec. 706. Alaska FMAP.

Sec. 707. 1-year extension of welfare-to-work transition.

Sec. 708. Additional entities qualified to determine medicaid presumptive eligibility

for low-income children.

Sec. 709. Development of uniform QMB/SLMB application form.

Sec. 710. Technical corrections.

TITLE VIII—STATE CHILDREN’S HEALTH INSURANCE PROGRAM

Sec. 801. Special rule for redistribution and availability of unused fiscal year 1998

and 1999 SCHIP allotments.

Sec. 802. Authority to pay medicaid expansion SCHIP costs from title XXI appropriation.

Sec. 803. Application of medicaid child presumptive eligibility provisions.

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TITLE IX—OTHER PROVISIONS

Subtitle A—PACE Program

Sec. 901. Extension of transition for current waivers.

Sec. 902. Continuing of certain operating arrangements permitted.

Sec. 903. Flexibility in exercising waiver authority.

Subtitle B—Outreach to Eligible Low-Income Medicare Beneficiaries

Sec. 911. Outreach on availability of medicare cost-sharing assistance to eligible

low-income medicare beneficiaries.

Subtitle C—Maternal and Child Health Block Grant

Sec. 921. Increase in authorization of appropriations for the maternal and child

health services block grant.

Subtitle D—Diabetes

Sec. 931. Increase in appropriations for special diabetes programs for type I diabetes

and Indians.

Sec. 932. Appropriations for Ricky Ray Hemophilia Relief Fund.

Subtitle E—Information on Nursing Facility Staffing

Sec. 941. Posting of information on nursing facility staffing.

Subtitle F—Adjustment of Multiemployer Plan Benefits Guaranteed

Sec. 951. Multiemployer plan benefits guaranteed.

TITLE I—MEDICARE BENEFICIARY IMPROVEMENTS

Subtitle A—Improved Preventive Benefits

SEC. 101. COVERAGE OF BIENNIAL SCREENING PAP SMEAR AND PELVIC EXAMS.

(a) IN GENERAL.—

(1) BIENNIAL SCREENING PAP SMEAR.—Section 1861(nn)(1)

(42 U.S.C. 1395x(nn)(1)) is amended by striking ‘‘3 years’’ and

inserting ‘‘2 years’’.

(2) BIENNIAL SCREENING PELVIC EXAM.—Section

1861(nn)(2) (42 U.S.C. 1395x(nn)(2)) is amended by striking ‘‘3

years’’ and inserting ‘‘2 years’’.

(b) EFFECTIVE DATE.—The amendments made by subsection (a)

shall apply to items and services furnished on or after July 1, 2001.

SEC. 102. COVERAGE OF SCREENING FOR GLAUCOMA.

(a) COVERAGE.—Section 1861(s)(2) (42 U.S.C. 1395x(s)(2)) is

amended—

(1) by striking ‘‘and’’ at the end of subparagraph (S);

(2) by inserting ‘‘and’’ at the end of subparagraph (T); and

(3) by adding at the end the following:

‘‘(U) screening for glaucoma (as defined in subsection (uu))

for individuals determined to be at high risk for glaucoma, individuals with a family history of glaucoma and individuals

with diabetes;’’.

(b) SERVICES DESCRIBED.—Section 1861 (42 U.S.C. 1395x) is

amended by adding at the end the following new subsection:

‘‘Screening for Glaucoma

‘‘(uu) The term ‘screening for glaucoma’ means a dilated eye examination with an intraocular pressure measurement, and a direct

ophthalmoscopy or a slit-lamp biomicroscopic examination for the

756

early detection of glaucoma which is furnished by or under the direct supervision of an optometrist or ophthalmologist who is legally

authorized to furnish such services under State law (or the State

regulatory mechanism provided by State law) of the State in which

the services are furnished, as would otherwise be covered if furnished by a physician or as an incident to a physician’s professional

service, if the individual involved has not had such an examination

in the preceding year.’’.

(c) CONFORMING AMENDMENT.—Section 1862(a)(1)(F) (42

U.S.C. 1395y(a)(1)(F)) is amended—

(1) by striking ‘‘and,’’; and

(2) by adding at the end the following: ‘‘and, in the case of

screening for glaucoma, which is performed more frequently

than is provided under section 1861(uu),’’.

(d) EFFECTIVE DATE.—The amendments made by this section

shall apply to services furnished on or after January 1, 2002.

SEC. 103. COVERAGE OF SCREENING COLONOSCOPY FOR AVERAGE

RISK INDIVIDUALS.

(a) IN GENERAL.—Section 1861(pp) (42 U.S.C. 1395x(pp)) is

amended—

(1) in paragraph (1)(C), by striking ‘‘In the case of an individual at high risk for colorectal cancer, screening colonoscopy’’

and inserting ‘‘Screening colonoscopy’’; and

(2) in paragraph (2), by striking ‘‘In paragraph (1)(C), an’’

and inserting ‘‘An’’.

(b) FREQUENCY LIMITS FOR SCREENING COLONOSCOPY.—Section

1834(d) (42 U.S.C. 1395m(d)) is amended—

(1) in paragraph (2)(E)(ii), by inserting before the period at

the end the following: ‘‘or, in the case of an individual who is

not at high risk for colorectal cancer, if the procedure is performed within the 119 months after a previous screening

colonoscopy’’; and

(2) in paragraph (3)—

(A) in the heading by striking ‘‘FOR INDIVIDUALS AT

HIGH RISK FOR COLORECTAL CANCER’’;

(B) in subparagraph (A), by striking ‘‘for individuals at

high risk for colorectal cancer (as defined in section

1861(pp)(2))’’; and

(C) in subparagraph (E), by inserting before the period

at the end the following: ‘‘or for other individuals if the procedure is performed within the 119 months after a previous

screening colonoscopy or within 47 months after a previous

screening flexible sigmoidoscopy’’.

(c) EFFECTIVE DATE.—The amendments made by this section

shall apply to colorectal cancer screening services provided on or

after July 1, 2001.

SEC. 104. MODERNIZATION OF SCREENING MAMMOGRAPHY BENEFIT.

(a) INCLUSION IN PHYSICIAN FEE SCHEDULE.—Section 1848(j)(3)

(42 U.S.C. 1395w–4(j)(3)) is amended by inserting ‘‘(13),’’ after ‘‘(4),’’.

(b) CONFORMING AMENDMENT.—Section 1834(c) (42 U.S.C.

1395m(c)) is amended to read as follows:

‘‘(c) PAYMENT AND STANDARDS FOR SCREENING MAMMOGRAPHY.—

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‘‘(1) IN GENERAL.—With respect to expenses incurred for

screening mammography (as defined in section 1861(jj)), payment may be made only—

‘‘(A) for screening mammography conducted consistent

with the frequency permitted under paragraph (2); and

‘‘(B) if the screening mammography is conducted by a

facility that has a certificate (or provisional certificate)

issued under section 354 of the Public Health Service Act.

‘‘(2) FREQUENCY COVERED.— ‘‘(A) IN GENERAL.—Subject to revision by the Secretary

under subparagraph (B)—

‘‘(i) no payment may be made under this part for

screening mammography performed on a woman under

35 years of age;

‘‘(ii) payment may be made under this part for only

one screening mammography performed on a woman

over 34 years of age, but under 40 years of age; and

‘‘(iii) in the case of a woman over 39 years of age,

payment may not be made under this part for screening mammography performed within 11 months following the month in which a previous screening mammography was performed.

‘‘(B) REVISION OF FREQUENCY.— ‘‘(i) REVIEW.—The Secretary, in consultation with

the Director of the National Cancer Institute, shall review periodically the appropriate frequency for performing screening mammography, based on age and

such other factors as the Secretary believes to be pertinent.

‘‘(ii) REVISION OF FREQUENCY.—The Secretary, taking into consideration the review made under clause

(i), may revise from time to time the frequency with

which screening mammography may be paid for under

this subsection.’’.

(c) EFFECTIVE DATE.—The amendments made by subsections (a)

and (b) shall apply with respect to screening mammographies furnished on or after January 1, 2002.

(d) PAYMENT FOR NEW TECHNOLOGIES.—

(1) TESTS FURNISHED IN 2001.—

(A) SCREENING.—For a screening mammography (as

defined in section 1861(jj) of the Social Security Act (42

U.S.C. 1395x(jj))) furnished during the period beginning on

April 1, 2001, and ending on December 31, 2001, that uses

a new technology, payment for such screening mammography shall be made as follows:

(i) In the case of a technology which directly takes

a digital image (without involving film), in an amount

equal to 150 percent of the amount of payment under

section 1848 of such Act (42 U.S.C. 1395w–4) for a bilateral diagnostic mammography (under HCPCS code

76091) for such year.

(ii) In the case of a technology which allows conversion of a standard film mammogram into a digital

image and subsequently analyzes such resulting image

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with software to identify possible problem areas, in an

amount equal to the limit that would otherwise be applied under section 1834(c)(3) of such Act (42 U.S.C.

1395m(c)(3)) for 2001, increased by $15.

(B) BILATERAL DIAGNOSTIC MAMMOGRAPHY.—For a bilateral diagnostic mammography furnished during the period beginning on April 1, 2001, and ending on December

31, 2001, that uses a new technology described in subparagraph (A), payment for such mammography shall be the

amount of payment provided for under such subparagraph.

(C) ALLOCATION OF AMOUNTS.—The Secretary shall

provide for an appropriate allocation of the amounts under

subparagraphs (A) and (B) between the professional and

technical components.

(D) IMPLEMENTATION OF PROVISION.—The Secretary of

Health and Human Services may implement the provisions

of this paragraph by program memorandum or otherwise.

(2) CONSIDERATION OF NEW HCPCS CODE FOR NEW TECHNOLOGIES AFTER 2001.—The Secretary shall determine, for such

mammographies performed after 2001, whether the assignment

of a new HCPCS code is appropriate for mammography that

uses a new technology. If the Secretary determines that a new

code is appropriate for such mammography, the Secretary shall

provide for such new code for such tests furnished after 2001.

(3) NEW TECHNOLOGY DESCRIBED.—For purposes of this

subsection, a new technology with respect to a mammography

is an advance in technology with respect to the test or equipment that results in the following:

(A) A significant increase or decrease in the resources

used in the test or in the manufacture of the equipment.

(B) A significant improvement in the performance of

the test or equipment.

(C) A significant advance in medical technology that is

expected to significantly improve the treatment of medicare

beneficiaries.

(4) HCPCS CODE DEFINED.—The term ‘‘HCPCS code’’

means a code under the Health Care Financing Administration

Common Procedure Coding System (HCPCS).

SEC. 105. COVERAGE OF MEDICAL NUTRITION THERAPY SERVICES FOR

BENEFICIARIES WITH DIABETES OR A RENAL DISEASE.

(a) COVERAGE.—Section 1861(s)(2) (42 U.S.C. 1395x(s)(2)), as

amended by section 102(a), is amended—

(1) in subparagraph (T), by striking ‘‘and’’ at the end;

(2) in subparagraph (U), by inserting ‘‘and’’ at the end; and

(3) by adding at the end the following new subparagraph:

‘‘(V) medical nutrition therapy services (as defined in subsection (vv)(1)) in the case of a beneficiary with diabetes or a

renal disease who—

‘‘(i) has not received diabetes outpatient self-management training services within a time period determined by

the Secretary;

‘‘(ii) is not receiving maintenance dialysis for which

payment is made under section 1881; and

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‘‘(iii) meets such other criteria determined by the Secretary after consideration of protocols established by dietitian or nutrition professional organizations;’’.

(b) SERVICES DESCRIBED.—Section 1861 (42 U.S.C. 1395x), as

amended by section 102(b), is amended by adding at the end the following:

‘‘Medical Nutrition Therapy Services; Registered Dietitian or

Nutrition Professional

‘‘(vv)(1) The term ‘medical nutrition therapy services’ means nutritional diagnostic, therapy, and counseling services for the purpose

of disease management which are furnished by a registered dietitian

or nutrition professional (as defined in paragraph (2)) pursuant to

a referral by a physician (as defined in subsection (r)(1)).

‘‘(2) Subject to paragraph (3), the term ‘registered dietitian or

nutrition professional’ means an individual who—

‘‘(A) holds a baccalaureate or higher degree granted by a regionally accredited college or university in the United States (or

an equivalent foreign degree) with completion of the academic

requirements of a program in nutrition or dietetics, as accredited by an appropriate national accreditation organization recognized by the Secretary for this purpose;

‘‘(B) has completed at least 900 hours of supervised dietetics

practice under the supervision of a registered dietitian or nutrition professional; and

‘‘(C)(i) is licensed or certified as a dietitian or nutrition professional by the State in which the services are performed; or

‘‘(ii) in the case of an individual in a State that does not

provide for such licensure or certification, meets such other criteria as the Secretary establishes.

‘‘(3) Subparagraphs (A) and (B) of paragraph (2) shall not

apply in the case of an individual who, as of the date of the enactment of this subsection, is licensed or certified as a dietitian or nutrition professional by the State in which medical nutrition therapy

services are performed.’’.

(c) PAYMENT.—Section 1833(a)(1) (42 U.S.C. 1395l(a)(1)) is

amended—

(1) by striking ‘‘and’’ before ‘‘(S)’’; and

(2) by inserting before the semicolon at the end the following: ‘‘, and (T) with respect to medical nutrition therapy

services (as defined in section 1861(vv)), the amount paid shall

be 80 percent of the lesser of the actual charge for the services

or 85 percent of the amount determined under the fee schedule

established under section 1848(b) for the same services if furnished by a physician’’.

(d) APPLICATION OF LIMITS ON BILLING.—Section 1842(b)(18)(C)

(42 U.S.C. 1395u(b)(18)(C)) is amended by adding at the end the

following new clause:

‘‘(vi) A registered dietitian or nutrition professional.’’.

(e) EFFECTIVE DATE.—The amendments made by this section

shall apply to services furnished on or after January 1, 2002.

(f) STUDY.—Not later than July 1, 2003, the Secretary of Health

and Human Services shall submit to Congress a report that contains recommendations with respect to the expansion to other mediVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00763 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.006 pfrm03 PsN: HR1033
760

care 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 COPAY- MENT.— (1) IN GENERAL.—Section 1833(t)(8)(C) (42 U.S.C.

1395l(t)(8)(C)) is amended to read as follows:

‘‘(C) LIMITATION ON COPAYMENT AMOUNT.— ‘‘(i) TO INPATIENT HOSPITAL DEDUCTIBLE

AMOUNT.—In no case shall the copayment amount for

a procedure performed in a year exceed the amount of

the inpatient hospital deductible established under section 1813(b) for that year.

‘‘(ii) TO SPECIFIED PERCENTAGE.—The Secretary

shall reduce the national unadjusted copayment

amount for a covered OPD service (or group of such

services) furnished in a year in a manner so that the

effective copayment rate (determined on a national

unadjusted basis) for that service in the year does not

exceed the following percentage:

‘‘(I) For procedures performed in 2001, on or

after April 1, 2001, 57 percent.

‘‘(II) For procedures performed in 2002 or

2003, 55 percent.

‘‘(III) For procedures performed in 2004, 50

percent.

‘‘(IV) For procedures performed in 2005, 45

percent.

‘‘(V) For procedures performed in 2006 and

thereafter, 40 percent.’’.

(2) EFFECTIVE DATE.—The amendment made by paragraph

(1) shall apply with respect to services furnished on or after

April 1, 2001.

(b) CONSTRUCTION REGARDING LIMITING INCREASES IN COSTSHARING.—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 efVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00764 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.006 pfrm03 PsN: HR1033
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fected by such amendment have resulted in actual savings to medicare beneficiaries.

SEC. 112. PRESERVATION OF COVERAGE OF DRUGS AND BIOLOGICALS

UNDER PART B OF THE MEDICARE PROGRAM.

(a) IN GENERAL.—Section 1861(s)(2) (42 U.S.C. 1395x(s)(2)) is

amended, in each of subparagraphs (A) and (B), by striking ‘‘(including drugs and biologicals which cannot, as determined in accordance with regulations, be self-administered)’’ and inserting ‘‘(including drugs and biologicals which are not usually self-administered by the patient)’’.

(b) EFFECTIVE DATE.—The amendment made by subsection (a)

shall apply to drugs and biologicals administered on or after the

date of the enactment of this Act.

SEC. 113. ELIMINATION OF TIME LIMITATION ON MEDICARE BENEFITS

FOR IMMUNOSUPPRESSIVE DRUGS.

(a) IN GENERAL.—Section 1861(s)(2)(J) (42 U.S.C.

1395x(s)(2)(J)) is amended by striking ‘‘, but only’’ and all that follows up to the semicolon at the end.

(b) CONFORMING AMENDMENTS.—

(1) EXTENDED COVERAGE.—Section 1832 (42 U.S.C. 1395k)

is amended—

(A) by striking subsection (b); and

(B) by redesignating subsection (c) as subsection (b).

(2) PASS-THROUGH; REPORT.—Section 227 of BBRA is

amended by striking subsection (d).

(c) EFFECTIVE DATE.—The amendment made by subsection (a)

shall apply to drugs furnished on or after the date of the enactment

of this Act.

SEC. 114. IMPOSITION OF BILLING LIMITS ON DRUGS.

(a) IN GENERAL.—Section 1842(o) (42 U.S.C. 1395u(o)) is

amended by adding at the end the following new paragraph:

‘‘(3)(A) Payment for a charge for any drug or biological for

which payment may be made under this part may be made only on

an assignment-related basis.

‘‘(B) The provisions of subsection (b)(18)(B) shall apply to

charges for such drugs or biologicals in the same manner as they

apply to services furnished by a practitioner described in subsection

(b)(18)(C).’’.

(b) EFFECTIVE DATE.—The amendment made by subsection (a)

shall apply to items furnished on or after January 1, 2001.

SEC. 115. WAIVER OF 24-MONTH WAITING PERIOD FOR MEDICARE COVERAGE OF INDIVIDUALS DISABLED WITH AMYOTROPHIC

LATERAL SCLEROSIS (ALS).

(a) IN GENERAL.—Section 226 (42 U.S.C. 426) is amended—

(1) by redesignating subsection (h) as subsection (j) and by

moving such subsection to the end of the section; and

(2) by inserting after subsection (g) the following new subsection:

‘‘(h) For purposes of applying this section in the case of an individual medically determined to have amyotrophic lateral sclerosis

(ALS), the following special rules apply:

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‘‘(1) Subsection (b) shall be applied as if there were no requirement for any entitlement to benefits, or status, for a period

longer than 1 month.

‘‘(2) The entitlement under such subsection shall begin with

the first month (rather than twenty-fifth month) of entitlement

or status.

‘‘(3) Subsection (f) shall not be applied.’’.

(b) CONFORMING AMENDMENT.—Section 1837 (42 U.S.C. 1395p)

is amended by adding at the end the following new subsection:

‘‘(j) In applying this section in the case of an individual who is

entitled to benefits under part A pursuant to the operation of section

226(h), the following special rules apply:

‘‘(1) The initial enrollment period under subsection (d) shall

begin on the first day of the first month in which the individual

satisfies the requirement of section 1836(1).

‘‘(2) In applying subsection (g)(1), the initial enrollment period shall begin on the first day of the first month of entitlement to disability insurance benefits referred to in such subsection.’’.

(c) EFFECTIVE DATE.—The amendments made by this section

shall apply to benefits for months beginning July 1, 2001.

Subtitle C—Demonstration Projects and Studies

SEC. 121. DEMONSTRATION PROJECT FOR DISEASE MANAGEMENT FOR

SEVERELY CHRONICALLY ILL MEDICARE BENEFICIARIES.

(a) IN GENERAL.—The Secretary of Health and Human Services

shall conduct a demonstration project under this section (in this section referred to as the ‘‘project’’) to demonstrate the impact on costs

and health outcomes of applying disease management to medicare

beneficiaries with diagnosed, advanced-stage congestive heart failure, diabetes, or coronary heart disease. In no case may the number

of participants in the project exceed 30,000 at any time.

(b) VOLUNTARY PARTICIPATION.— (1) ELIGIBILITY.—Medicare beneficiaries are eligible to participate in the project only if—

(A) they meet specific medical criteria demonstrating

the appropriate diagnosis and the advanced nature of their

disease;

(B) their physicians approve of participation in the

project; and

(C) they are not enrolled in a Medicare+Choice plan.

(2) BENEFITS.—A beneficiary who is enrolled in the project

shall be eligible—

(A) for disease management services related to their

chronic health condition; and

(B) for payment for all costs for prescription drugs

without regard to whether or not they relate to the chronic

health condition, except that the project may provide for

modest cost-sharing with respect to prescription drug coverage.

(c) CONTRACTS WITH DISEASE MANAGEMENT ORGANIZATIONS.—

(1) IN GENERAL.—The Secretary of Health and Human

Services shall carry out the project through contracts with up

to three disease management organizations. The Secretary shall

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not enter into such a contract with an organization unless the

organization demonstrates that it can produce improved health

outcomes and reduce aggregate medicare expenditures consistent with paragraph (2).

(2) CONTRACT PROVISIONS.—Under such contracts—

(A) such an organization shall be required to provide

for prescription drug coverage described in subsection

(b)(2)(B);

(B) such an organization shall be paid a fee negotiated

and established by the Secretary in a manner so that (taking into account savings in expenditures under parts A and

B of the medicare program under title XVIII of the Social

Security Act) there will be a net reduction in expenditures

under the medicare program as a result of the project; and

(C) such an organization shall guarantee, through an

appropriate arrangement with a reinsurance company or

otherwise, the net reduction in expenditures described in

subparagraph (B).

(3) PAYMENTS.—Payments to such organizations shall be

made in appropriate proportion from the Trust Funds established under title XVIII of the Social Security Act.

(d) APPLICATION OF MEDIGAP PROTECTIONS TO DEMONSTRATION

PROJECT ENROLLEES.—(1) Subject to paragraph (2), the provisions

of section 1882(s)(3) (other than clauses (i) through (iv) of subparagraph (B)) and 1882(s)(4) of the Social Security Act shall apply to

enrollment (and termination of enrollment) in the demonstration

project under this section, in the same manner as they apply to enrollment (and termination of enrollment) with a Medicare+Choice

organization in a Medicare+Choice plan.

(2) In applying paragraph (1)—

(A) any reference in clause (v) or (vi) of section 1882(s)(3)(B)

of such Act to 12 months is deemed a reference to the period of

the demonstration project; and

(B) the notification required under section 1882(s)(3)(D) of

such Act shall be provided in a manner specified by the Secretary of Health and Human Services.

(e) DURATION.—The project shall last for not longer than 3

years.

(f) WAIVER.—The Secretary of Health and Human Services

shall waive such provisions of title XVIII of the Social Security Act

as may be necessary to provide for payment for services under the

project in accordance with subsection (c)(3).

(g) REPORT.—The Secretary of Health and Human Services

shall submit to Congress an interim report on the project not later

than 2 years after the date it is first implemented and a final report

on the project not later than 6 months after the date of its completion. Such reports shall include information on the impact of the

project on costs and health outcomes and recommendations on the

cost-effectiveness of extending or expanding the project.

SEC. 122. CANCER PREVENTION AND TREATMENT DEMONSTRATION

FOR ETHNIC AND RACIAL MINORITIES.

(a) DEMONSTRATION.—

(1) IN GENERAL.—The Secretary of Health and Human

Services (in this section referred to as the ‘‘Secretary’’) shall conVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00767 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.006 pfrm03 PsN: HR1033
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duct demonstration projects (in this section referred to as ‘‘demonstration projects’’) for the purpose of developing models and

evaluating methods that—

(A) improve the quality of items and services provided

to target individuals in order to facilitate reduced disparities in early detection and treatment of cancer;

(B) improve clinical outcomes, satisfaction, quality of

life, and appropriate use of medicare-covered services and

referral patterns among those target individuals with cancer;

(C) eliminate disparities in the rate of preventive cancer screening measures, such as pap smears and prostate

cancer screenings, among target individuals; and

(D) promote collaboration with community-based organizations to ensure cultural competency of health care professionals and linguistic access for persons with limited

English proficiency.

(2) TARGET INDIVIDUAL DEFINED.—In this section, the term

‘‘target individual’’ means an individual of a racial and ethnic

minority group, as defined by section 1707 of the Public Health

Service Act, who is entitled to benefits under part A, and enrolled under part B, of title XVIII of the Social Security Act.

(b) PROGRAM DESIGN.—

(1) INITIAL DESIGN.—Not later than 1 year after the date of

the enactment of this Act, the Secretary shall evaluate best

practices in the private sector, community programs, and academic research of methods that reduce disparities among individuals of racial and ethnic minority groups in the prevention

and treatment of cancer and shall design the demonstration

projects based on such evaluation.

(2) NUMBER AND PROJECT AREAS.—Not later than 2 years

after the date of the enactment of this Act, the Secretary shall

implement at least 9 demonstration projects, including the following:

(A) 2 projects for each of the 4 following major racial

and ethnic minority groups:

(i) American Indians, including Alaska Natives,

Eskimos, and Aleuts.

(ii) Asian Americans and Pacific Islanders.

(iii) Blacks.

(iv) Hispanics.

The 2 projects must target different ethnic subpopulations.

(B) 1 project within the Pacific Islands.

(C) At least 1 project each in a rural area and innercity 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

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viduals and increase satisfaction of beneficiaries and

health care providers;

the Secretary shall continue the existing demonstration projects

and may expand the number of demonstration projects.

(c) REPORT TO CONGRESS.— (1) IN GENERAL.—Not later than 2 years after the date the

Secretary implements the initial demonstration projects, and biannually thereafter, the Secretary shall submit to Congress a

report regarding the demonstration projects.

(2) CONTENTS OF REPORT.—Each report under paragraph

(1) shall include the following:

(A) A description of the demonstration projects.

(B) An evaluation of—

(i) the cost-effectiveness of the demonstration

projects;

(ii) the quality of the health care services provided

to target individuals under the demonstration projects;

and

(iii) beneficiary and health care provider satisfaction under the demonstration projects.

(C) Any other information regarding the demonstration

projects that the Secretary determines to be appropriate.

(d) WAIVER AUTHORITY.—The Secretary shall waive compliance

with the requirements of title XVIII of the Social Security Act to

such extent and for such period as the Secretary determines is necessary to conduct demonstration projects.

(e) FUNDING.—

(1) DEMONSTRATION PROJECTS.—

(A) STATE PROJECTS.—Except as provided in subparagraph (B), the Secretary shall provide for the transfer from

the Federal Hospital Insurance Trust Fund and the Federal Supplementary Insurance Trust Fund under title

XVIII of the Social Security Act, in such proportions as the

Secretary determines to be appropriate, of such funds as

are necessary for the costs of carrying out the demonstration projects.

(B) TERRITORY PROJECTS.—In the case of a demonstration project described in subsection (b)(2)(B), amounts shall

be available only as provided in any Federal law making

appropriations for the territories.

(2) LIMITATION.—In conducting demonstration projects, the

Secretary shall ensure that the aggregate payments made by the

Secretary do not exceed the sum of the amount which the Secretary would have paid under the program for the prevention

and treatment of cancer if the demonstration projects were not

implemented, plus $25,000,000.

SEC. 123. STUDY ON MEDICARE COVERAGE OF ROUTINE THYROID

SCREENING.

(a) STUDY.—The Secretary of Health and Human Services shall

request the National Academy of Sciences, and as appropriate in

conjunction with the United States Preventive Services Task Force,

to conduct a study on the addition of coverage of routine thyroid

screening using a thyroid stimulating hormone test as a preventive

benefit provided to medicare beneficiaries under title XVIII of the

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Social Security Act for some or all medicare beneficiaries. In conducting the study, the Academy shall consider the short-term and

long-term benefits, and costs to the medicare program, of such addition.

(b) REPORT.—Not later than 2 years after the date of the enactment of this Act, the Secretary of Health and Human Services shall

submit a report on the findings of the study conducted under subsection (a) to the Committee on Ways and Means and the Committee

on Commerce of the House of Representatives and the Committee on

Finance of the Senate.

SEC. 124. MEDPAC STUDY ON CONSUMER COALITIONS.

(a) STUDY.—The Medicare Payment Advisory Commission shall

conduct a study that examines the use of consumer coalitions in the

marketing of Medicare+Choice plans under the medicare program

under title XVIII of the Social Security Act. The study shall

examine—

(1) the potential for increased efficiency in the medicare

program through greater beneficiary knowledge of their health

care options, decreased marketing costs of Medicare+Choice organizations, and creation of a group market;

(2) the implications of Medicare+Choice plans and medicare supplemental policies (under section 1882 of the Social Security Act (42 U.S.C. 1395ss)) offering medicare beneficiaries in

the same geographic location different benefits and premiums

based on their affiliation with a consumer coalition;

(3) how coalitions should be governed, how they should be

accountable to the Secretary of Health and Human Services,

and how potential conflicts of interest in the activities of consumer coalitions should be avoided; and

(4) how such coalitions should be funded.

(b) REPORT.—Not later than 1 year after the date of the enactment of this Act, the Commission shall submit to Congress a report

on the study conducted under subsection (a). The report shall include a recommendation on whether and how a demonstration

project might be conducted for the operation of consumer coalitions

under the medicare program.

(c) CONSUMER COALITION DEFINED.—For purposes of this section, the term ‘‘consumer coalition’’ means a nonprofit, communitybased 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

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cost-sharing for such beneficiaries under section 1902(n) of the Social Security Act (42 U.S.C. 1396a(n)). As part of such study, the

Secretary shall analyze the effect of such payment limitation on providers who serve a disproportionate share of such beneficiaries.

(b) REPORT.—Not later than 1 year after the date of the enactment of this Act, the Secretary shall submit to Congress a report on

the study under subsection (a). The report shall include recommendations regarding any changes that should be made to the

State payment limits under section 1902(n) for qualified medicare

beneficiaries to ensure appropriate access to services.

SEC. 126. STUDIES ON PREVENTIVE INTERVENTIONS IN PRIMARY

CARE FOR OLDER AMERICANS.

(a) STUDIES.—The Secretary of Health and Human Services,

acting through the United States Preventive Services Task Force,

shall conduct a series of studies designed to identify preventive

interventions that can be delivered in the primary care setting and

that are most valuable to older Americans.

(b) MISSION STATEMENT.—The mission statement of the United

States Preventive Services Task Force is amended to include the

evaluation of services that are of particular relevance to older Americans.

(c) REPORT.—Not later than 1 year after the date of the enactment of this Act, and annually thereafter, the Secretary of Health

and Human Services shall submit to Congress a report on the conclusions of the studies conducted under subsection (a), together with

recommendations for such legislation and administrative actions as

the Secretary considers appropriate.

SEC. 127. MEDPAC STUDY AND REPORT ON MEDICARE COVERAGE OF

CARDIAC AND PULMONARY REHABILITATION THERAPY

SERVICES.

(a) STUDY.—

(1) IN GENERAL.—The Medicare Payment Advisory Commission shall conduct a study on coverage of cardiac and pulmonary rehabilitation therapy services under the medicare program under title XVIII of the Social Security Act.

(2) FOCUS.—In conducting the study under paragraph (1),

the Commission shall focus on the appropriate—

(A) qualifying diagnoses required for coverage of cardiac and pulmonary rehabilitation therapy services;

(B) level of physician direct involvement and supervision in furnishing such services; and

(C) level of reimbursement for such services.

(b) REPORT.—Not later than 18 months after the date of the enactment of this Act, the Commission shall submit to Congress a report on the study conducted under subsection (a) together with such

recommendations for legislation and administrative action as the

Commission determines appropriate.

SEC. 128. LIFESTYLE MODIFICATION PROGRAM DEMONSTRATION.

(a) IN GENERAL.—The Secretary of Health and Human Services

shall carry out the demonstration project known as the Lifestyle

Modification Program Demonstration, as described in the Health

Care Financing Administration Memorandum of Understanding entered into on November 13, 2000, and as subsequently modified, (in

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this section referred to as the ‘‘project’’) in accordance with the following requirements:

(1) The project shall include no fewer than 1,800 medicare

beneficiaries who complete under the project the entire course of

treatment under the Lifestyle Modification Program.

(2) The project shall be conducted over a course of 4 years.

(b) STUDY ON COST-EFFECTIVENESS.—

(1) STUDY.—The Secretary shall conduct a study on the

cost-effectiveness of the Lifestyle Modification Program as conducted under the project. In determining whether such Program

is cost-effective, the Secretary shall determine (using a control

group under a matched paired experimental design) whether expenditures incurred for medicare beneficiaries enrolled under

the project exceed expenditures for the control group of medicare

beneficiaries with similar health conditions who are not enrolled under the project.

(2) REPORTS.—

(A) INITIAL REPORT.—Not later that 1 year after the

date on which 900 medicare beneficiaries have completed

the entire course of treatment under the Lifestyle Modification Program under the project, the Secretary shall submit

to Congress an initial report on the study conducted under

paragraph (1).

(B) FINAL REPORT.—Not later that 1 year after the date

on which 1,800 medicare beneficiaries have completed the

entire course of treatment under such Program under the

project, the Secretary shall submit to Congress a final report on the study conducted under paragraph (1).

TITLE II—RURAL HEALTH CARE IMPROVEMENTS

Subtitle A—Critical Access Hospital Provisions

SEC. 201. CLARIFICATION OF NO BENEFICIARY COST-SHARING FOR

CLINICAL DIAGNOSTIC LABORATORY TESTS FURNISHED

BY CRITICAL ACCESS HOSPITALS.

(a) PAYMENT CLARIFICATION.—Section 1834(g) (42 U.S.C.

1395m(g)) is amended by adding at the end the following new paragraph:

‘‘(4) NO BENEFICIARY COST-SHARING FOR CLINICAL DIAGNOSTIC LABORATORY SERVICES.—No coinsurance, deductible, copayment, or other cost-sharing otherwise applicable under this

part shall apply with respect to clinical diagnostic laboratory

services furnished as an outpatient critical access hospital service. Nothing in this title shall be construed as providing for

payment for clinical diagnostic laboratory services furnished as

part of outpatient critical access hospital services, other than on

the basis described in this subsection.’’.

(b) TECHNICAL AND CONFORMING AMENDMENTS.—

(1) Paragraphs (1)(D)(i) and (2)(D)(i) of section 1833(a) (42

U.S.C. 1395l(a)) are each amended by striking ‘‘or which are

furnished on an outpatient basis by a critical access hospital’’.

(2) Section 403(d)(2) of BBRA (113 Stat. 1501A–371) is

amended by striking ‘‘The amendment made by subsection (a)

shall apply’’ and inserting ‘‘Paragraphs (1) through (3) of secVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00772 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.006 pfrm03 PsN: HR1033
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tion 1834(g) of the Social Security Act (as amended by paragraph (1)) apply’’.

(c) EFFECTIVE DATES.—The amendment made—

(1) by subsection (a) shall apply to services furnished on or

after the date of the enactment of BBRA;

(2) by subsection (b)(1) shall apply as if included in the enactment of section 403(e)(1) of BBRA (113 Stat. 1501A–371);

and

(3) by subsection (b)(2) shall apply as if included in the enactment of section 403(d)(2) of BBRA (113 Stat. 1501A–371).

SEC. 202. ASSISTANCE WITH FEE SCHEDULE PAYMENT FOR PROFESSIONAL SERVICES UNDER ALL-INCLUSIVE RATE.

(a) IN GENERAL.—Section 1834(g)(2)(B) (42 U.S.C.

1395m(g)(2)(B)) is amended by inserting ‘‘115 percent of’’ before

‘‘such amounts’’.

(b) EFFECTIVE DATE.—The amendment made by subsection (a)

shall apply with respect to items and services furnished on or after

July 1, 2001.

SEC. 203. EXEMPTION OF CRITICAL ACCESS HOSPITAL SWING BEDS

FROM SNF PPS.

(a) IN GENERAL.—Section 1888(e)(7) (42 U.S.C. 1395yy(e)(7)) is

amended—

(1) in the heading, by striking ‘‘TRANSITION FOR’’ and inserting ‘‘TREATMENT OF’’;

(2) in subparagraph (A), by striking ‘‘IN GENERAL.—The’’

and inserting ‘‘TRANSITION.—Subject to subparagraph (C), the’’;

(3) in subparagraph (A), by inserting ‘‘(other than critical

access hospitals)’’ after ‘‘facilities described in subparagraph

(B)’’;

(4) in subparagraph (B), by striking ‘‘, for which payment’’

and all that follows before the period; and

(5) by adding at the end the following new subparagraph:

‘‘(C) EXEMPTION FROM PPS OF SWING-BED SERVICES

FURNISHED IN CRITICAL ACCESS HOSPITALS.—The prospective payment system established under this subsection shall

not apply to services furnished by a critical access hospital

pursuant to an agreement under section 1883.’’.

(b) PAYMENT ON A REASONABLE COST BASIS FOR SWING BED

SERVICES FURNISHED BY CRITICAL ACCESS HOSPITALS.—Section

1883(a) (42 U.S.C. 1395tt(a)) is amended—

(1) in paragraph (2)(A), by inserting ‘‘(other than a critical

access hospital)’’ after ‘‘any hospital’’; and

(2) by adding at the end the following new paragraph:

‘‘(3) Notwithstanding any other provision of this title, a critical

access hospital shall be paid for covered skilled nursing facility

services furnished under an agreement entered into under this section on the basis of the reasonable costs of such services (as determined under section 1861(v)).’’.

(c) EFFECTIVE DATE.—The amendments made by this section

shall apply to cost reporting periods beginning on or after the date

of the enactment of this Act.

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SEC. 204. PAYMENT IN CRITICAL ACCESS HOSPITALS FOR EMERGENCY

ROOM ON-CALL PHYSICIANS.

(a) IN GENERAL.—Section 1834(g) (42 U.S.C. 1395m(g)), as

amended by section 201(a), is further amended by adding at the end

the following new paragraph:

‘‘(5) COVERAGE OF COSTS FOR EMERGENCY ROOM ON-CALL

PHYSICIANS.—In determining the reasonable costs of outpatient

critical access hospital services under paragraphs (1) and

(2)(A), the Secretary shall recognize as allowable costs, amounts

(as defined by the Secretary) for reasonable compensation and

related costs for emergency room physicians who are on-call (as

defined by the Secretary) but who are not present on the premises of the critical access hospital involved, and are not otherwise furnishing physicians’ services and are not on-call at any

other provider or facility.’’.

(b) EFFECTIVE DATE.—The amendment made by subsection (a)

shall apply to cost reporting periods beginning on or after October

1, 2001.

SEC. 205. TREATMENT OF AMBULANCE SERVICES FURNISHED BY CERTAIN CRITICAL ACCESS HOSPITALS.

(a) IN GENERAL.—Section 1834(l) (42 U.S.C. 1395m(l)) is

amended by adding at the end the following new paragraph:

‘‘(8) SERVICES FURNISHED BY CRITICAL ACCESS HOSPITALS.—Notwithstanding any other provision of this subsection, the Secretary shall pay the reasonable costs incurred in

furnishing ambulance services if such services are furnished—

‘‘(A) by a critical access hospital (as defined in section

1861(mm)(1)), or

‘‘(B) by an entity that is owned and operated by a critical access hospital,

but only if the critical access hospital or entity is the only provider or supplier of ambulance services that is located within

a 35-mile drive of such critical access hospital.’’.

(b) CONFORMING AMENDMENT.—Section 1833(a)(1)(R) (42

U.S.C. 1395l(a)(1)(R)) is amended—

(1) by striking ‘‘ambulance service,’’ and inserting ‘‘ambulance services, (i)’’; and

(2) by inserting before the comma at the end the following:

‘‘and (ii) with respect to ambulance services described in section

1834(l)(8), the amounts paid shall be the amounts determined

under section 1834(g) for outpatient critical access hospital

services’’.

(c) EFFECTIVE DATE.—The amendments made by this section

shall apply to services furnished on or after the date of the enactment of this Act.

SEC. 206. GAO STUDY ON CERTAIN ELIGIBILITY REQUIREMENTS FOR

CRITICAL ACCESS HOSPITALS.

(a) STUDY.—The Comptroller General of the United States shall

conduct a study on the eligibility requirements for critical access

hospitals under section 1820(c) of the Social Security Act (42 U.S.C.

1395i–4(c)) with respect to limitations on average length of stay and

number of beds in such a hospital, including an analysis of—

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(1) the feasibility of having a distinct part unit as part of

a critical access hospital for purposes of the medicare program

under title XVIII of such Act; and

(2) the effect of seasonal variations in patient admissions

on critical access hospital eligibility requirements with respect

to limitations on average annual length of stay and number of

beds.

(b) REPORT.—Not later than 1 year after the date of the enactment of this Act, the Comptroller General shall submit to Congress

a report on the study conducted under subsection (a) together with

recommendations regarding—

(1) whether distinct part units should be permitted as part

of a critical access hospital under the medicare program;

(2) if so permitted, the payment methodologies that should

apply with respect to services provided by such units;

(3) whether, and to what extent, such units should be included in or excluded from the bed limits applicable to critical

access hospitals under the medicare program; and

(4) any adjustments to such eligibility requirements to account for seasonal variations in patient admissions.

Subtitle B—Other Rural Hospitals Provisions

SEC. 211. TREATMENT OF RURAL DISPROPORTIONATE SHARE HOSPITALS.

(a) APPLICATION OF UNIFORM THRESHOLD.—Section

1886(d)(5)(F)(v) (42 U.S.C. 1395ww(d)(5)(F)(v)) is amended—

(1) in subclause (II), by inserting ‘‘(or 15 percent, for discharges occurring on or after April 1, 2001)’’ after ‘‘30 percent’’;

(2) in subclause (III), by inserting ‘‘(or 15 percent, for discharges occurring on or after April 1, 2001)’’ after ‘‘40 percent’’;

and

(3) in subclause (IV), by inserting ‘‘(or 15 percent, for discharges occurring on or after April 1, 2001)’’ after ‘‘45 percent’’.

(b) ADJUSTMENT OF PAYMENT FORMULAS.—

(1) SOLE COMMUNITY HOSPITALS.—Section 1886(d)(5)(F) (42

U.S.C. 1395ww(d)(5)(F)) is amended—

(A) in clause (iv)(VI), by inserting after ‘‘10 percent’’ the

following: ‘‘or, for discharges occurring on or after April 1,

2001, is equal to the percent determined in accordance with

clause (x)’’; and

(B) by adding at the end the following new clause:

‘‘(x) For purposes of clause (iv)(VI) (relating to sole community

hospitals), in the case of a hospital for a cost reporting period with

a disproportionate patient percentage (as defined in clause (vi))

that—

‘‘(I) is less than 19.3, the disproportionate share adjustment

percentage is determined in accordance with the following formula: (P–15)(.65) + 2.5;

‘‘(II) is equal to or exceeds 19.3, but is less than 30.0, such

adjustment percentage is equal to 5.25 percent; or

‘‘(III) is equal to or exceeds 30, such adjustment percentage

is equal to 10 percent,

where ‘P’ is the hospital’s disproportionate patient percentage (as defined in clause (vi)).’’.

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(2) RURAL REFERRAL CENTERS.—Such section is further

amended—

(A) in clause (iv)(V), by inserting after ‘‘clause (viii)’’

the following: ‘‘or, for discharges occurring on or after April

1, 2001, is equal to the percent determined in accordance

with clause (xi)’’; and

(B) by adding at the end the following new clause:

‘‘(xi) For purposes of clause (iv)(V) (relating to rural referral

centers), in the case of a hospital for a cost reporting period with

a disproportionate patient percentage (as defined in clause (vi))

that—

‘‘(I) is less than 19.3, the disproportionate share adjustment

percentage is determined in accordance with the following formula: (P–15)(.65) + 2.5;

‘‘(II) is equal to or exceeds 19.3, but is less than 30.0, such

adjustment percentage is equal to 5.25 percent; or

‘‘(III) is equal to or exceeds 30, such adjustment percentage

is determined in accordance with the following formula: (P–

30)(.6) + 5.25,

where ‘P’ is the hospital’s disproportionate patient percentage (as defined in clause (vi)).’’.

(3) SMALL RURAL HOSPITALS GENERALLY.—Such section is

further amended—

(A) in clause (iv)(III), by inserting after ‘‘4 percent’’ the

following: ‘‘or, for discharges occurring on or after April 1,

2001, is equal to the percent determined in accordance with

clause (xii)’’; and

(B) by adding at the end the following new clause:

‘‘(xii) For purposes of clause (iv)(III) (relating to small rural

hospitals generally), in the case of a hospital for a cost reporting period with a disproportionate patient percentage (as defined in clause

(vi)) that—

‘‘(I) is less than 19.3, the disproportionate share adjustment

percentage is determined in accordance with the following formula: (P–15)(.65) + 2.5; or

‘‘(II) is equal to or exceeds 19.3, such adjustment percentage

is equal to 5.25 percent,

where ‘P’ is the hospital’s disproportionate patient percentage (as defined in clause (vi)).’’.

(4) HOSPITALS THAT ARE BOTH SOLE COMMUNITY HOSPITALS

AND RURAL REFERRAL CENTERS.—Such section is further

amended, in clause (iv)(IV), by inserting after ‘‘clause (viii)’’ the

following: ‘‘or, for discharges occurring on or after April 1,

2001, the greater of the percentages determined under clause (x)

or (xi)’’.

(5) URBAN HOSPITALS WITH LESS THAN 100 BEDS.—Such section is further amended—

(A) in clause (iv)(II), by inserting after ‘‘5 percent’’ the

following: ‘‘or, for discharges occurring on or after April 1,

2001, is equal to the percent determined in accordance with

clause (xiii)’’; and

(B) by adding at the end the following new clause:

‘‘(xiii) For purposes of clause (iv)(II) (relating to urban hospitals

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ing period with a disproportionate patient percentage (as defined in

clause (vi)) that—

‘‘(I) is less than 19.3, the disproportionate share adjustment

percentage is determined in accordance with the following formula: (P–15)(.65) + 2.5; or

‘‘(II) is equal to or exceeds 19.3, such adjustment percentage

is equal to 5.25 percent,

where ‘P’ is the hospital’s disproportionate patient percentage (as defined in clause (vi)).’’.

SEC. 212. OPTION TO BASE ELIGIBILITY FOR MEDICARE DEPENDENT,

SMALL RURAL HOSPITAL PROGRAM ON DISCHARGES DURING 2 OF THE 3 MOST RECENTLY AUDITED COST REPORTING PERIODS.

(a) IN GENERAL.—Section 1886(d)(5)(G)(iv)(IV) (42 U.S.C.

1395ww(d)(5)(G)(iv)(IV)) is amended by inserting ‘‘, or 2 of the 3

most recently audited cost reporting periods for which the Secretary

has a settled cost report,’’ after ‘‘1987’’.

(b) EFFECTIVE DATE.—The amendment made by this section

shall apply with respect to cost reporting periods beginning on or

after April 1, 2001.

SEC. 213. EXTENSION OF OPTION TO USE REBASED TARGET AMOUNTS

TO ALL SOLE COMMUNITY HOSPITALS.

(a) IN GENERAL.—Section 1886(b)(3)(I)(i) (42 U.S.C.

1395ww(b)(3)(I)(i)) is amended—

(1) in the matter preceding subclause (I), by striking ‘‘that

for its cost reporting period beginning during 1999’’ and all

that follows through ‘‘for such target amount’’ and inserting

‘‘there shall be substituted for the amount otherwise determined

under subsection (d)(5)(D)(i), if such substitution results in a

greater amount of payment under this section for the hospital’’;

(2) in subclause (I), by striking ‘‘target amount otherwise

applicable’’ and all that follows through ‘‘target amount’)’’ and

inserting ‘‘the amount otherwise applicable to the hospital

under subsection (d)(5)(D)(i) (referred to in this clause as the

‘subsection (d)(5)(D)(i) amount’)’’; and

(3) in each of subclauses (II) and (III), by striking ‘‘subparagraph (C) target amount’’ and inserting ‘‘subsection

(d)(5)(D)(i) amount’’.

(b) EFFECTIVE DATE.—The amendments made by this section

shall take effect as if included in the enactment of section 405 of

BBRA (113 Stat. 1501A–372).

SEC. 214. MEDPAC ANALYSIS OF IMPACT OF VOLUME ON PER UNIT

COST OF RURAL HOSPITALS WITH PSYCHIATRIC UNITS.

The Medicare Payment Advisory Commission, in its study conducted pursuant to subsection (a) of section 411 of BBRA (113 Stat.

1501A–377), shall include—

(1) in such study an analysis of the impact of volume on

the per unit cost of rural hospitals with psychiatric units; and

(2) in its report under subsection (b) of such section a recommendation on whether special treatment for such hospitals

may be warranted.

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Subtitle C—Other Rural Provisions

SEC. 221. ASSISTANCE FOR PROVIDERS OF AMBULANCE SERVICES IN

RURAL AREAS.

(a) TRANSITIONAL ASSISTANCE IN CERTAIN MILEAGE RATES.— Section 1834(l) (42 U.S.C. 1395m(l)) is amended by adding at the

end the following new paragraph:

‘‘(8) TRANSITIONAL ASSISTANCE FOR RURAL PROVIDERS.—In

the case of ground ambulance services furnished on or after

July 1, 2001, and before January 1, 2004, for which the transportation originates in a rural area (as defined in section

1886(d)(2)(D)) or in a rural census tract of a metropolitan statistical area (as determined under the most recent modification

of the Goldsmith Modification, originally published in the Federal Register on February 27, 1992 (57 Fed. Reg. 6725)), the fee

schedule established under this subsection shall provide that,

with respect to the payment rate for mileage for a trip above 17

miles, and up to 50 miles, the rate otherwise established shall

be increased by not less than 1⁄2 of the additional payment per

mile established for the first 17 miles of such a trip originating

in a rural area.’’.

(b) GAO STUDIES ON THE COSTS OF AMBULANCE SERVICES

FURNISHED IN RURAL AREAS.— (1) STUDY.—The Comptroller General of the United States

shall conduct a study on each of the matters described in paragraph (2).

(2) MATTERS DESCRIBED.—The matters referred to in paragraph (1) are the following:

(A) The cost of efficiently providing ambulance services

for trips originating in rural areas, with special emphasis

on collection of cost data from rural providers.

(B) The means by which rural areas with low population densities can be identified for the purpose of designating areas in which the cost of providing ambulance

services would be expected to be higher than similar services provided in more heavily populated areas because of

low usage. Such study shall also include an analysis of the

additional costs of providing ambulance services in areas

designated under the previous sentence.

(3) REPORT.—Not later than June 30, 2002, the Comptroller General shall submit to Congress a report on the results

of the studies conducted under paragraph (1) and shall include

recommendations on steps that should be taken to assure access

to ambulance services in rural areas.

(c) ADJUSTMENT IN RURAL RATES.—In providing for adjustments under subparagraph (D) of section 1834(l)(2) of the Social Security Act (42 U.S.C. 1395m(l)(2)) for years beginning with 2004,

the Secretary of Health and Human Services shall take into consideration the recommendations contained in the report under subsection (b)(2) and shall adjust the fee schedule payment rates under

such section for ambulance services provided in low density rural

areas based on the increased cost (if any) of providing such services

in such areas.

(d) EFFECTIVE DATE.—The amendment made by subsection (a)

shall apply to services furnished on or after July 1, 2001. In applyVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00778 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.006 pfrm03 PsN: HR1033
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ing such amendment to services furnished on or after such date and

before January 1, 2002, the amount of the rate increase provided

under such amendment shall be equal to $1.25 per mile.

SEC. 222. PAYMENT FOR CERTAIN PHYSICIAN ASSISTANT SERVICES.

(a) PAYMENT FOR CERTAIN PHYSICIAN ASSISTANT SERVICES.—

Section 1842(b)(6)(C) (42 U.S.C. 1395u(b)(6)(C)) is amended—

(1) by striking ‘‘for such services provided before January

1, 2003,’’; and

(2) by striking the semicolon at the end and inserting a

comma.

(b) EFFECTIVE DATE.—The amendments made by subsection (a)

shall take effect on the date of the enactment of this Act.

SEC. 223. REVISION OF MEDICARE REIMBURSEMENT FOR TELEHEALTH

SERVICES.

(a) TIME LIMIT FOR BBA PROVISION.—Section 4206(a) of BBA

(42 U.S.C. 1395l note) is amended by striking ‘‘Not later than January 1, 1999’’ and inserting ‘‘For services furnished on and after January 1, 1999, and before October 1, 2001’’.

(b) EXPANSION OF MEDICARE PAYMENT FOR TELEHEALTH SERVICES.—Section 1834 (42 U.S.C. 1395m) is amended by adding at the

end the following new subsection:

‘‘(m) PAYMENT FOR TELEHEALTH SERVICES.—

‘‘(1) IN GENERAL.—The Secretary shall pay for telehealth

services that are furnished via a telecommunications system by

a physician (as defined in section 1861(r)) or a practitioner (described in section 1842(b)(18)(C)) to an eligible telehealth individual enrolled under this part notwithstanding that the individual physician or practitioner providing the telehealth service

is not at the same location as the beneficiary. For purposes of

the preceding sentence, in the case of any Federal telemedicine

demonstration program conducted in Alaska or Hawaii, the

term ‘telecommunications system’ includes store-and-forward

technologies that provide for the asynchronous transmission of

health care information in single or multimedia formats.

‘‘(2) PAYMENT AMOUNT.—

‘‘(A) DISTANT SITE.—The Secretary shall pay to a physician or practitioner located at a distant site that furnishes a telehealth service to an eligible telehealth individual an amount equal to the amount that such physician

or practitioner would have been paid under this title had

such service been furnished without the use of a telecommunications system.

‘‘(B) FACILITY FEE FOR ORIGINATING SITE.—With respect

to a telehealth service, subject to section 1833(a)(1)(U), there

shall be paid to the originating site a facility fee equal to—

‘‘(i) for the period beginning on October 1, 2001,

and ending on December 31, 2001, and for 2002, $20;

and

‘‘(ii) for a subsequent year, the facility fee specified

in clause (i) or this clause for the preceding year increased by the percentage increase in the MEI (as defined in section 1842(i)(3)) for such subsequent year.

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‘‘(C) TELEPRESENTER NOT REQUIRED.—Nothing in this

subsection shall be construed as requiring an eligible telehealth individual to be presented by a physician or practitioner at the originating site for the furnishing of a service

via a telecommunications system, unless it is medically necessary (as determined by the physician or practitioner at

the distant site).

‘‘(3) LIMITATION ON BENEFICIARY CHARGES.— ‘‘(A) PHYSICIAN AND PRACTITIONER.—The provisions of

section 1848(g) and subparagraphs (A) and (B) of section

1842(b)(18) shall apply to a physician or practitioner receiving payment under this subsection in the same manner

as they apply to physicians or practitioners under such sections.

‘‘(B) ORIGINATING SITE.—The provisions of section

1842(b)(18) shall apply to originating sites receiving a facility fee in the same manner as they apply to practitioners

under such section.

‘‘(4) DEFINITIONS.—For purposes of this subsection:

‘‘(A) DISTANT SITE.—The term ‘distant site’ means the

site at which the physician or practitioner is located at the

time the service is provided via a telecommunications system.

‘‘(B) ELIGIBLE TELEHEALTH INDIVIDUAL.—The term ‘eligible telehealth individual’ means an individual enrolled

under this part who receives a telehealth service furnished

at an originating site.

‘‘(C) ORIGINATING SITE.— ‘‘(i) IN GENERAL.—The term ‘originating site’

means only those sites described in clause (ii) at which

the eligible telehealth individual is located at the time

the service is furnished via a telecommunications system and only if such site is located—

‘‘(I) in an area that is designated as a rural

health professional shortage area under section

332(a)(1)(A) of the Public Health Service Act (42

U.S.C. 254e(a)(1)(A));

‘‘(II) in a county that is not included in a Metropolitan Statistical Area; or

‘‘(III) from an entity that participates in a Federal telemedicine demonstration project that has

been approved by (or receives funding from) the

Secretary of Health and Human Services as of December 31, 2000.

‘‘(ii) SITES DESCRIBED.—The sites referred to in

clause (i) are the following sites:

‘‘(I) The office of a physician or practitioner.

‘‘(II) A critical access hospital (as defined in

section 1861(mm)(1)).

‘‘(III) A rural health clinic (as defined in section 1861(aa)(s)).

‘‘(IV) A Federally qualified health center (as

defined in section 1861(aa)(4)).

‘‘(V) A hospital (as defined in section 1861(e)).

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‘‘(D) PHYSICIAN.—The term ‘physician’ has the meaning

given that term in section 1861(r).

‘‘(E) PRACTITIONER.—The term ‘practitioner’ has the

meaning given that term in section 1842(b)(18)(C).

‘‘(F) TELEHEALTH SERVICE.—

‘‘(i) IN GENERAL.—The term ‘telehealth service’

means professional consultations, office visits, and office psychiatry services (identified as of July 1, 2000,

by HCPCS codes 99241–99275, 99201–99215, 90804–

90809, and 90862 (and as subsequently modified by

the Secretary)), and any additional service specified by

the Secretary.

‘‘(ii) YEARLY UPDATE.—The Secretary shall establish a process that provides, on an annual basis, for

the addition or deletion of services (and HCPCS codes),

as appropriate, to those specified in clause (i) for authorized payment under paragraph (1).’’.

(c) CONFORMING AMENDMENT.—Section 1833(a)(1) (42 U.S.C.

1395l(1)), as amended by section 105(c), is further amended—

(1) by striking ‘‘and (T)’’ and inserting ‘‘(T)’’; and

(2) by inserting before the semicolon at the end the following: ‘‘, and (U) with respect to facility fees described in section 1834(m)(2)(B), the amounts paid shall be 80 percent of the

lesser of the actual charge or the amounts specified in such section’’.

(d) STUDY AND REPORT ON ADDITIONAL COVERAGE.—

(1) STUDY.—The Secretary of Health and Human Services

shall conduct a study to identify—

(A) settings and sites for the provision of telehealth

services that are in addition to those permitted under section 1834(m) of the Social Security Act, as added by subsection (b);

(B) practitioners that may be reimbursed under such

section for furnishing telehealth services that are in addition to the practitioners that may be reimbursed for such

services under such section; and

(C) geographic areas in which telehealth services may

be reimbursed that are in addition to the geographic areas

where such services may be reimbursed under such section.

(2) REPORT.—Not later than 2 years after the date of the

enactment of this Act, the Secretary shall submit to Congress a

report on the study conducted under paragraph (1) together

with such recommendations for legislation that the Secretary

determines are appropriate.

(e) EFFECTIVE DATE.—The amendments made by subsections (b)

and (c) shall be effective for services furnished on or after October

1, 2001.

SEC. 224. EXPANDING ACCESS TO RURAL HEALTH CLINICS.

(a) IN GENERAL.—The matter in section 1833(f) (42 U.S.C.

1395l(f)) preceding paragraph (1) is amended by striking ‘‘rural hospitals’’ and inserting ‘‘hospitals’’.

(b) EFFECTIVE DATE.—The amendment made by subsection (a)

shall apply to services furnished on or after July 1, 2001.

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SEC. 225. MEDPAC STUDY ON LOW-VOLUME, ISOLATED RURAL HEALTH

CARE PROVIDERS.

(a) STUDY.—The Medicare Payment Advisory Commission shall

conduct a study on the effect of low patient and procedure volume

on the financial status of low-volume, isolated rural health care providers participating in the medicare program under title XVIII of

the Social Security Act.

(b) REPORT.—Not later than 18 months after the date of the enactment of this Act, the Commission shall submit to Congress a report on the study conducted under subsection (a) indicating—

(1) whether low-volume, isolated rural health care providers are having, or may have, significantly decreased medicare margins or other financial difficulties resulting from any

of the payment methodologies described in subsection (c);

(2) whether the status as a low-volume, isolated rural

health care provider should be designated under the medicare

program and any criteria that should be used to qualify for

such a status; and

(3) any changes in the payment methodologies described in

subsection (c) that are necessary to provide appropriate reimbursement under the medicare program to low-volume, isolated

rural health care providers (as designated pursuant to paragraph (2)).

(c) PAYMENT METHODOLOGIES DESCRIBED.—The payment methodologies described in this subsection are the following:

(1) The prospective payment system for hospital outpatient

department services under section 1833(t) of the Social Security

Act (42 U.S.C. 1395l(t)).

(2) The fee schedule for ambulance services under section

1834(l) of such Act (42 U.S.C. 1395m(l)).

(3) The prospective payment system for inpatient hospital

services under section 1886 of such Act (42 U.S.C. 1395ww).

(4) The prospective payment system for routine service costs

of skilled nursing facilities under section 1888(e) of such Act (42

U.S.C. 1395yy(e)).

(5) The prospective payment system for home health services under section 1895 of such Act (42 U.S.C. 1395fff).

TITLE III—PROVISIONS RELATING TO PART A

Subtitle A—Inpatient Hospital Services

SEC. 301. REVISION OF ACUTE CARE HOSPITAL PAYMENT UPDATE FOR

2001.

(a) IN GENERAL.—Section 1886(b)(3)(B)(i) (42 U.S.C.

1395ww(b)(3)(B)(i)) is amended—

(1) in subclause (XVI), by striking ‘‘minus 1.1 percentage

points for hospitals (other than sole community hospitals) in all

areas, and the market basket percentage increase for sole community hospitals,’’ and inserting ‘‘for hospitals in all areas,’’;

(2) in subclause (XVII)—

(A) by striking ‘‘minus 1.1 percentage points’’ and inserting ‘‘minus 0.55 percentage points; and

(B) by striking ‘‘and’’ at the end;

(3) by redesignating subclause (XVIII) as subclause (XIX);

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(4) in subclause (XIX), as so redesignated, by striking ‘‘fiscal year 2003’’ and inserting ‘‘fiscal year 2004’’; and

(5) by inserting after subclause (XVII) the following new

subclause:

‘‘(XVIII) for fiscal year 2003, the market basket percentage

increase minus 0.55 percentage points for hospitals in all areas,

and’’.

(b) SPECIAL RULE FOR PAYMENT FOR FISCAL YEAR 2001.—Notwithstanding the amendment made by subsection (a), for purposes

of making payments for fiscal year 2001 for inpatient hospital services furnished by subsection (d) hospitals (as defined in section

1886(d)(1)(B) of the Social Security Act (42 U.S.C.

1395ww(d)(1)(B)), the ‘‘applicable percentage increase’’ referred to in

section 1886(b)(3)(B)(i) of such Act (42 U.S.C. 1395ww(b)(3)(B)(i))—

(1) for discharges occurring on or after October 1, 2000,

and before April 1, 2001, shall be determined in accordance

with subclause (XVI) of such section as in effect on the day before the date of the enactment of this Act; and

(2) for discharges occurring on or after April 1, 2001, and

before October 1, 2001, shall be equal to—

(A) the market basket percentage increase plus 1.1 percentage points for hospitals (other than sole community

hospitals) in all areas; and

(B) the market basket percentage increase for sole community hospitals.

(c) CONSIDERATION OF PRICE OF BLOOD AND BLOOD PRODUCTS

IN MARKET BASKET INDEX.—The Secretary of Health and Human

Services shall, when next (after the date of the enactment of this

Act) rebasing and revising the hospital market basket index (as defined in section 1886(b)(3)(B)(iii) of the Social Security Act (42

U.S.C. 1395ww(b)(3)(B)(iii))), consider the prices of blood and blood

products purchased by hospitals and determine whether those prices

are adequately reflected in such index.

(d) MEDPAC STUDY AND REPORT REGARDING CERTAIN HOSPITAL COSTS.—

(1) STUDY.—The Medicare Payment Advisory Commission

shall conduct a study on—

(A) any increased costs incurred by subsection (d) hospitals (as defined in paragraph (1)(B) of section 1886(d) of

the Social Security Act (42 U.S.C. 1395ww(d))) in providing

inpatient hospital services to medicare beneficiaries under

title XVIII of such Act during the period beginning on October 1, 1983, and ending on September 30, 1999, that were

attributable to—

(i) complying with new blood safety measure requirements; and

(ii) providing such services using new technologies;

(B) the extent to which the prospective payment system

for such services under such section provides adequate and

timely recognition of such increased costs;

(C) the prospects for (and to the extent practicable, the

magnitude of) cost increases that hospitals will incur in

providing such services that are attributable to complying

with new blood safety measure requirements and providing

780

such services using new technologies during the 10 years

after the date of the enactment of this Act; and

(D) the feasibility and advisability of establishing

mechanisms under such payment system to provide for

more timely and accurate recognition of such cost increases

in the future.

(2) CONSULTATION.—In conducting the study under this

subsection, the Commission shall consult with representatives of

the blood community, including—

(A) hospitals;

(B) organizations involved in the collection, processing,

and delivery of blood; and

(C) organizations involved in the development of new

blood safety technologies.

(3) REPORT.—Not later than 1 year after the date of the enactment of this Act, the Commission shall submit to Congress

a report on the study conducted under paragraph (1) together

with such recommendations for legislation and administrative

action as the Commission determines appropriate.

(e) ADJUSTMENT FOR INPATIENT CASE MIX CHANGES.— (1) IN GENERAL.—Section 1886(d)(3)(A) (42 U.S.C.

1395ww(d)(3)(A)) is amended by adding at the end the following new clause:

‘‘(vi) Insofar as the Secretary determines that the adjustments under paragraph (4)(C)(i) for a previous fiscal year (or

estimates that such adjustments for a future fiscal year) did (or

are likely to) result in a change in aggregate payments under

this subsection during the fiscal year that are a result of

changes in the coding or classification of discharges that do not

reflect real changes in case mix, the Secretary may adjust the

average standardized amounts computed under this paragraph

for subsequent fiscal years so as to eliminate the effect of such

coding or classification changes.’’.

(2) EFFECTIVE DATE.—The amendment made by paragraph

(1) shall apply to discharges occurring on or after October 1,

2001.

SEC. 302. ADDITIONAL MODIFICATION IN TRANSITION FOR INDIRECT

MEDICAL EDUCATION (IME) PERCENTAGE ADJUSTMENT.

(a) IN GENERAL.—Section 1886(d)(5)(B)(ii) (42 U.S.C.

1395ww(d)(5)(B)(ii)) is amended—

(1) in subclause (V) by striking ‘‘and’’ at the end;

(2) by redesignating subclause (VI) as subclause (VII);

(3) in subclause (VII) as so redesignated, by striking ‘‘2001’’

and inserting ‘‘2002’’; and

(4) by inserting after subclause (V) the following new subclause:

‘‘(VI) during fiscal year 2002, ‘c’ is equal to 1.6; and’’.

(b) SPECIAL RULE FOR PAYMENT FOR FISCAL YEAR 2001.—Notwithstanding paragraph (5)(B)(ii)(V) of section 1886(d) of the Social

Security Act (42 U.S.C. 1395ww(d)(5)(B)(ii)(V)), for purposes of

making payments for subsection (d) hospitals (as defined in paragraph (1)(B) of such section) with indirect costs of medical education, the indirect teaching adjustment factor referred to in paragraph (5)(B)(ii) of such section shall be determined, for discharges

781

occurring on or after April 1, 2001, and before October 1, 2001, as

if ‘‘c’’ in paragraph (5)(B)(ii)(V) of such section equalled 1.66 rather

than 1.54.

(c) CONFORMING AMENDMENT RELATING TO DETERMINATION OF

STANDARDIZED AMOUNT.—Section 1886(d)(2)(C)(i) (42 U.S.C.

1395ww(d)(2)(C)(i)) is amended by inserting ‘‘or of section 302 of the

Medicare, Medicaid, and SCHIP Benefits Improvement and Protection Act of 2000’’ after ‘‘Balanced Budget Refinement Act of 1999’’.

(d) CLERICAL AMENDMENTS.—Section 1886(d)(5)(B) (42 U.S.C.

1395ww(d)(5)(B)), as amended by subsection (a), is further amended

by moving the indentation of each of the following 2 ems to the left:

(1) Clauses (ii), (v), and (vi).

(2) Subclauses (I) (II), (III), (IV), (V), and (VII) of clause

(ii).

(3) Subclauses (I) and (II) of clause (vi) and the flush sentence at the end of such clause.

SEC. 303. DECREASE IN REDUCTIONS FOR DISPROPORTIONATE SHARE

HOSPITAL (DSH) PAYMENTS.

(a) IN GENERAL.—Section 1886(d)(5)(F)(ix) (42 U.S.C.

1395ww(d)(5)(F)(ix)) is amended—

(1) in subclause (III), by striking ‘‘each of’’ and by inserting

‘‘and 2 percent, respectively’’ after ‘‘3 percent’’; and

(2) in subclause (IV), by striking ‘‘4 percent’’ and inserting

‘‘3 percent’’.

(b) SPECIAL RULE FOR PAYMENT FOR FISCAL YEAR 2001.—Notwithstanding the amendment made by subsection (a)(1), for purposes of making disproportionate share payments for subsection (d)

hospitals (as defined in section 1886(d)(1)(B) of the Social Security

Act (42 U.S.C. 1395ww(d)(1)(B)) for fiscal year 2001, the additional

payment amount otherwise determined under clause (ii) of section

1886(d)(5)(F) of the Social Security Act (42 U.S.C.

1395ww(d)(5)(F))—

(1) for discharges occurring on or after October 1, 2000,

and before April 1, 2001, shall be adjusted as provided by

clause (ix)(III) of such section as in effect on the day before the

date of the enactment of this Act; and

(2) for discharges occurring on or after April 1, 2001, and

before October 1, 2001, shall, instead of being reduced by 3 percent as provided by clause (ix)(III) of such section as in effect

after the date of the enactment of this Act, be reduced by 1 percent.

(c) CONFORMING AMENDMENTS RELATING TO DETERMINATION

OF STANDARDIZED AMOUNT.—Section 1886(d)(2)(C)(iv) (42 U.S.C.

1395ww(d)(2)(C)(iv)), is amended—

(1) by striking ‘‘1989 or’’ and inserting ‘‘1989,’’; and

(2) by inserting ‘‘, or the enactment of section 303 of the

Medicare, Medicaid, and SCHIP Benefits Improvement and

Protection Act of 2000’’ after ‘‘Omnibus Budget Reconciliation

Act of 1990’’.

(d) TECHNICAL AMENDMENT.—

(1) IN GENERAL.—Section 1886(d)(5)(F)(i) (42 U.S.C.

1395ww(d)(5)(F)(i)) is amended by striking ‘‘and before October

1, 1997,’’.

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(2) EFFECTIVE DATE.—The amendment made by paragraph

(1) is effective as if included in the enactment of BBA.

(e) REFERENCE TO CHANGES IN DSH FOR RURAL HOSPITALS.— For additional changes in the DSH program for rural hospitals, see

section 211.

SEC. 304. WAGE INDEX IMPROVEMENTS.

(a) DURATION OF WAGE INDEX RECLASSIFICATION; USE OF 3-

YEAR WAGE DATA.—Section 1886(d)(10)(D) (42 U.S.C.

1395ww(d)(10)(D)) is amended by adding at the end the following

new clauses:

‘‘(v) Any decision of the Board to reclassify a subsection (d) hospital for purposes of the adjustment factor described in subparagraph (C)(i)(II) for fiscal year 2001 or any fiscal year thereafter

shall be effective for a period of 3 fiscal years, except that the Secretary shall establish procedures under which a subsection (d) hospital may elect to terminate such reclassification before the end of

such period.

‘‘(vi) Such guidelines shall provide that, in making decisions on

applications for reclassification for the purposes described in clause

(v) for fiscal year 2003 and any succeeding fiscal year, the Board

shall base any comparison of the average hourly wage for the hospital with the average hourly wage for hospitals in an area on—

‘‘(I) an average of the average hourly wage amount for the

hospital from the most recently published hospital wage survey

data of the Secretary (as of the date on which the hospital applies for reclassification) and such amount from each of the two

immediately preceding surveys; and

‘‘(II) an average of the average hourly wage amount for hospitals in such area from the most recently published hospital

wage survey data of the Secretary (as of the date on which the

hospital applies for reclassification) and such amount from

each of the two immediately preceding surveys.’’.

(b) PROCESS TO PERMIT STATEWIDE WAGE INDEX CALCULATION

AND APPLICATION.— (1) IN GENERAL.—The Secretary of Health and Human

Services shall establish a process (based on the voluntary process utilized by the Secretary of Health and Human Services

under section 1848 of the Social Security Act (42 U.S.C. 1395w–

4) for purposes of computing and applying a statewide geographic adjustment factor) under which an appropriate statewide entity may apply to have all the geographic areas in a

State treated as a single geographic area for purposes of computing and applying the area wage index under section

1886(d)(3)(E) of such Act (42 U.S.C. 1395ww(d)(3)(E)). Such

process shall be established by October 1, 2001, for reclassifications beginning in fiscal year 2003.

(2) PROHIBITION ON INDIVIDUAL HOSPITAL RECLASSIFICATION.—Notwithstanding any other provision of law, if the Secretary applies a statewide geographic wage index under paragraph (1) with respect to a State, any application submitted by

a hospital in that State under section 1886(d)(10) of the Social

Security Act (42 U.S.C. 1395ww(d)(10)) for geographic reclassification shall not be considered.

(c) COLLECTION OF INFORMATION ON OCCUPATIONAL MIX.—

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(1) IN GENERAL.—The Secretary of Health and Human

Services shall provide for the collection of data every 3 years on

occupational mix for employees of each subsection (d) hospital

(as defined in section 1886(d)(1)(D) of the Social Security Act

(42 U.S.C. 1395ww(d)(1)(D))) in the provision of inpatient hospital services, in order to construct an occupational mix adjustment in the hospital area wage index applied under section

1886(d)(3)(E) of such Act (42 U.S.C. 1395ww(d)(3)(E)).

(2) APPLICATION.—The third sentence of section

1886(d)(3)(E) (42 U.S.C. 1395ww(d)(3)(E)) is amended by striking ‘‘To the extent determined feasible by the Secretary, such

survey shall measure’’ and inserting ‘‘Not less often than once

every 3 years the Secretary (through such survey or otherwise)

shall measure’’.

(3) EFFECTIVE DATE.—By not later than September 30,

2003, for application beginning October 1, 2004, the Secretary

shall first complete—

(A) the collection of data under paragraph (1); and

(B) the measurement under the third sentence of section 1886(d)(3)(E), as amended by paragraph (2).

SEC. 305. PAYMENT FOR INPATIENT SERVICES OF REHABILITATION

HOSPITALS.

(a) ASSISTANCE WITH ADMINISTRATIVE COSTS ASSOCIATED

WITH COMPLETION OF PATIENT ASSESSMENT.—Section 1886(j)(3)(B)

(42 U.S.C. 1395ww(j)(3)(B)) is amended by striking ‘‘98 percent’’

and inserting ‘‘98 percent for fiscal year 2001 and 100 percent for

fiscal year 2002’’.

(b) ELECTION TO APPLY FULL PROSPECTIVE PAYMENT RATE

WITHOUT PHASE-IN.— (1) IN GENERAL.—Paragraph (1) of section 1886(j) (42

U.S.C. 1395ww(j)) is amended—

(A) in subparagraph (A), by inserting ‘‘other than a facility making an election under subparagraph (F)’’ before

‘‘in a cost reporting period’’;

(B) in subparagraph (B), by inserting ‘‘or, in the case

of a facility making an election under subparagraph (F),

for any cost reporting period described in such subparagraph,’’ after ‘‘2002,’’; and

(C) by adding at the end the following new subparagraph:

‘‘(F) ELECTION TO APPLY FULL PROSPECTIVE PAYMENT

SYSTEM.—A rehabilitation facility may elect, not later than

30 days before its first cost reporting period for which the

payment methodology under this subsection applies to the

facility, to have payment made to the facility under this

subsection under the provisions of subparagraph (B) (rather than subparagraph (A)) for each cost reporting period to

which such payment methodology applies.’’.

(2) CLARIFICATION.—Paragraph (3)(B) of such section is

amended by inserting ‘‘but not taking into account any payment

adjustment resulting from an election permitted under paragraph (1)(F)’’ after ‘‘paragraphs (4) and (6)’’.

(c) EFFECTIVE DATE.—The amendments made by this section

take effect as if included in the enactment of BBA.

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SEC. 306. PAYMENT FOR INPATIENT SERVICES OF PSYCHIATRIC HOSPITALS.

With respect to hospitals described in clause (i) of section

1886(d)(1)(B) of the Social Security Act (42 U.S.C. 1395ww(d)(1)(B))

and psychiatric units described in the matter following clause (v) of

such section, in making incentive payments to such hospitals under

section 1886(b)(1)(A) of such Act (42 U.S.C. 1395ww(b)(1)(A)) for

cost reporting periods beginning on or after October 1, 2000, and before October 1, 2001, the Secretary of Health and Human Services,

in clause (ii) of such section, shall substitute ‘‘3 percent’’ for ‘‘2 percent’’.

SEC. 307. PAYMENT FOR INPATIENT SERVICES OF LONG-TERM CARE

HOSPITALS.

(a) INCREASED TARGET AMOUNTS AND CAPS FOR LONG-TERM

CARE HOSPITALS BEFORE IMPLEMENTATION OF THE PROSPECTIVE

PAYMENT SYSTEM.—

(1) IN GENERAL.—Section 1886(b)(3) (42 U.S.C.

1395ww(b)(3)) is amended—

(A) in subparagraph (H)(ii)(III), by inserting ‘‘subject to

subparagraph (J),’’ after ‘‘2002,’’; and

(B) by adding at the end the following new subparagraph:

‘‘(J) For cost reporting periods beginning during fiscal year

2001, for a hospital described in subsection (d)(1)(B)(iv)—

‘‘(i) the limiting or cap amount otherwise determined under

subparagraph (H) shall be increased by 2 percent; and

‘‘(ii) the target amount otherwise determined under subparagraph (A) shall be increased by 25 percent (subject to the

limiting or cap amount determined under subparagraph (H), as

increased by clause (i)).’’.

(2) APPLICATION.—The amendments made by subsection (a)

and by section 122 of BBRA (113 Stat. 1501A–331) shall not be

taken into account in the development and implementation of

the prospective payment system under section 123 of BBRA (113

Stat. 1501A–331).

(b) IMPLEMENTATION OF PROSPECTIVE PAYMENT SYSTEM FOR

LONG-TERM CARE HOSPITALS.—

(1) MODIFICATION OF REQUIREMENT.—In developing the

prospective payment system for payment for inpatient hospital

services provided in long-term care hospitals described in section 1886(d)(1)(B)(iv) of the Social Security Act (42 U.S.C.

1395ww(d)(1)(B)(iv)) under the medicare program under title

XVIII of such Act required under section 123 of BBRA, the Secretary of Health and Human Services shall examine the feasibility and the impact of basing payment under such a system

on the use of existing (or refined) hospital diagnosis-related

groups (DRGs) that have been modified to account for different

resource use of long-term care hospital patients as well as the

use of the most recently available hospital discharge data. The

Secretary shall examine and may provide for appropriate adjustments to the long-term hospital payment system, including

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tionate 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 EXIST- ING DRG METHODOLOGY.—If the Secretary is unable to implement the prospective payment system under section 123 of the

BBRA by October 1, 2002, the Secretary shall implement a prospective payment system for such hospitals that bases payment

under such a system using existing hospital diagnosis-related

groups (DRGs), modified where feasible to account for resource

use of long-term care hospital patients using the most recently

available hospital discharge data for such services furnished on

or after that date.

Subtitle B—Adjustments to PPS Payments for Skilled

Nursing Facilities

SEC. 311. ELIMINATION OF REDUCTION IN SKILLED NURSING FACILITY (SNF) MARKET BASKET UPDATE IN 2001.

(a) IN GENERAL.—Section 1888(e)(4)(E)(ii) (42 U.S.C.

1395yy(e)(4)(E)(ii)) is amended—

(1) by redesignating subclauses (II) and (III) as subclauses

(III) and (IV), respectively;

(2) in subclause (III), as so redesignated—

(A) by striking ‘‘each of fiscal years 2001 and 2002’’

and inserting ‘‘each of fiscal years 2002 and 2003’’; and

(B) by striking ‘‘minus 1 percentage point’’ and inserting ‘‘minus 0.5 percentage points’’; and

(3) by inserting after subclause (I) the following new subclause:

‘‘(II) for fiscal year 2001, the rate computed for

the previous fiscal year increased by the skilled

nursing facility market basket percentage change

for the fiscal year;’’.

(b) SPECIAL RULE FOR PAYMENT FOR FISCAL YEAR 2001.—Notwithstanding the amendments made by subsection (a), for purposes

of making payments for covered skilled nursing facility services

under section 1888(e) of the Social Security Act (42 U.S.C.

1395yy(e)) for fiscal year 2001, the Federal per diem rate referred

to in paragraph (4)(E)(ii) of such section—

(1) for the period beginning on October 1, 2000, and ending

on March 31, 2001, shall be the rate determined in accordance

with the law as in effect on the day before the date of the enactment of this Act; and

(2) for the period beginning on April 1, 2001, and ending

on September 30, 2001, shall be the rate that would have been

determined under such section if ‘‘plus 1 percentage point’’ had

been substituted for ‘‘minus 1 percentage point’’ under subclause

(II) of such paragraph (as in effect on the day before the date

of the enactment of this Act).

(c) RELATION TO TEMPORARY INCREASE IN BBRA.—The increases provided under section 101 of BBRA (113 Stat. 1501A–325)

shall be in addition to any increase resulting from the amendments

made by subsection (a).

(d) GAO REPORT ON ADEQUACY OF SNF PAYMENT RATES.—Not

later than July 1, 2002, the Comptroller General of the United

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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 casemix adjusted Federal prospective payment rate specified in Tables

3 and 4 of the final rule published in the Federal Register by the

Health Care Financing Administration on July 31, 2000 (65 Fed.

Reg. 46770) and as subsequently updated, effective for services furnished on or after April 1, 2001, and before October 1, 2002.

(b) GAO AUDIT OF NURSING STAFF RATIOS.—

(1) AUDIT.—The Comptroller General of the United States

shall conduct an audit of nursing staffing ratios in a representative sample of medicare skilled nursing facilities. Such sample

shall cover selected States and shall include broad representation with respect to size, ownership, location, and medicare volume. Such audit shall include an examination of payroll

records and medicaid cost reports of individual facilities.

(2) REPORT.—Not later than August 1, 2002, the Comptroller General shall submit to Congress a report on the audits

conducted under paragraph (1). Such report shall include an

assessment of the impact of the increased payments under this

subtitle on increased nursing staff ratios and shall make recommendations as to whether increased payments under subsection (a) should be continued.

SEC. 313. APPLICATION OF SNF CONSOLIDATED BILLING REQUIREMENT LIMITED TO PART A COVERED STAYS.

(a) IN GENERAL.—Section 1862(a)(18) (42 U.S.C. 1395y(a)(18))

is amended by striking ‘‘or of a part of a facility that includes a

skilled nursing facility (as determined under regulations),’’ and inserting ‘‘during a period in which the resident is provided covered

post-hospital extended care services (or, for services described in section 1861(s)(2)(D), which are furnished to such an individual without regard to such period),’’.

(b) CONFORMING AMENDMENTS.—(1) Section 1842(b)(6)(E) (42

U.S.C. 1395u(b)(6)(E)) is amended—

787

(A) by inserting ‘‘by, or under arrangements made by, a

skilled nursing facility’’ after ‘‘furnished’’;

(B) by striking ‘‘or of a part of a facility that includes a

skilled nursing facility (as determined under regulations)’’; and

(C) by striking ‘‘(without regard to whether or not the item

or service was furnished by the facility, by others under arrangement with them made by the facility, under any other contracting or consulting arrangement, or otherwise)’’.

(2) Section 1842(t) (42 U.S.C. 1395u(t)) is amended by striking

‘‘by a physician’’ and ‘‘or of a part of a facility that includes a

skilled nursing facility (as determined under regulations),’’.

(3) Section 1866(a)(1)(H)(ii)(I) (42 U.S.C. 1395cc(a)(1)(H)(ii)(I))

is amended by inserting after ‘‘who is a resident of the skilled nursing facility’’ the following: ‘‘during a period in which the resident

is provided covered post-hospital extended care services (or, for services described in section 1861(s)(2)(D), that are furnished to such an

individual without regard to such period)’’.

(c) EFFECTIVE DATE.—The amendments made by subsections (a)

and (b) shall apply to services furnished on or after January 1,

2001.

(d) OVERSIGHT.—The Secretary of Health and Human Services,

through the Office of the Inspector General in the Department of

Health and Human Services or otherwise, shall monitor payments

made under part B of the title XVIII of the Social Security Act for

items and services furnished to residents of skilled nursing facilities

during a time in which the residents are not being provided medicare covered post-hospital extended care services to ensure that there

is not duplicate billing for services or excessive services provided.

SEC. 314. ADJUSTMENT OF REHABILITATION RUGS TO CORRECT

ANOMALY IN PAYMENT RATES.

(a) ADJUSTMENT FOR REHABILITATION RUGS.— (1) IN GENERAL.—For purposes of computing payments for

covered skilled nursing facility services under paragraph (1) of

section 1888(e) of the Social Security Act (42 U.S.C. 1395yy(e))

for such services furnished on or after April 1, 2001, and before

the date described in section 101(c)(2) of BBRA (113 Stat.

1501A–324), the Secretary of Health and Human Services shall

increase by 6.7 percent the adjusted Federal per diem rate otherwise determined under paragraph (4) of such section (but for

this section) for covered skilled nursing facility services for

RUG–III rehabilitation groups described in paragraph (2) furnished to an individual during the period in which such individual is classified in such a RUG–III category.

(2) REHABILITATION GROUPS DESCRIBED.—The RUG–III rehabilitation groups for which the adjustment described in paragraph (1) applies are RUC, RUB, RUA, RVC, RVB, RVA, RHC,

RHB, RHA, RMC, RMB, RMA, RLB, and RLA, as specified in

Tables 3 and 4 of the final rule published in the Federal Register by the Health Care Financing Administration on July 31,

2000 (65 Fed. Reg. 46770).

(b) CORRECTION WITH RESPECT TO REHABILITATION RUGS.—

(1) IN GENERAL.—Section 101(b) of BBRA (113 Stat.

1501A–324) is amended by striking ‘‘CA1, RHC, RMC, and

RMB’’ and inserting ‘‘and CA1’’.

788

(2) EFFECTIVE DATE.—The amendment made by paragraph

(1) shall apply to services furnished on or after April 1, 2001.

(c) REVIEW BY OFFICE OF INSPECTOR GENERAL.—The Inspector

General of the Department of Health and Human Services shall review the medicare payment structure for services classified within

rehabilitation resource utilization groups (RUGs) (as in effect after

the date of the enactment of the BBRA) to assess whether payment

incentives exist for the delivery of inadequate care. Not later than

October 1, 2001, the Inspector General shall submit to Congress a

report on such review.

SEC. 315. ESTABLISHMENT OF PROCESS FOR GEOGRAPHIC RECLASSIFICATION.

(a) IN GENERAL.—The Secretary of Health and Human Services

may establish a procedure for the geographic reclassification of a

skilled nursing facility for purposes of payment for covered skilled

nursing facility services under the prospective payment system established under section 1888(e) of the Social Security Act (42 U.S.C.

1395yy(e)). Such procedure may be based upon the method for geographic reclassifications for inpatient hospitals established under

section 1886(d)(10) of the Social Security Act (42 U.S.C.

1395ww(d)(10)).

(b) REQUIREMENT FOR SKILLED NURSING FACILITY WAGE

DATA.—In no case may the Secretary implement the procedure

under subsection (a) before such time as the Secretary has collected

data necessary to establish an area wage index for skilled nursing

facilities based on wage data from such facilities.

Subtitle C—Hospice Care

SEC. 321. 5 PERCENT INCREASE IN PAYMENT BASE.

(a) IN GENERAL.—Section 1814(i)(1)(C)(ii)(VI) (42 U.S.C.

1395f(i)(1)(C)(ii)(VI)) is amended by inserting ‘‘, plus, in the case of

fiscal year 2001, 5.0 percentage points’’ before the semicolon at the

end.

(b) EFFECTIVE DATE.—The amendment made by subsection (a)

shall apply to hospice care furnished on or after April 1, 2001. In

applying clause (ii) of section 1814(i)(1)(C) of the Social Security Act

(42 U.S.C. 1395f(i)(1)(C)) beginning with fiscal year 2002, the payment rates in effect under such section during the period beginning

on April 1, 2001, and ending on September 30, shall be treated as

the payment rates in effect during fiscal year 2001.

(c) NO EFFECT ON BBRA TEMPORARY INCREASE.—The provisions of this section shall have no effect on the application of section

131 of BBRA.

(d) APPLICATION OF WAGE INDEX.—Notwithstanding section

1814(i) of the Social Security Act (42 U.S.C. 1395f(i)), the Secretary

of Health and Human Services shall use 1.0043 as the hospice wage

index value for the Wichita, Kansas Metropolitan Statistical Area in

calculating payments under such section for a hospice program providing hospice care in such area during fiscal year 2000. The Secretary may provide for an appropriate timely lump sum payment to

reflect the application of the previous sentence.

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(e) TECHNICAL AMENDMENT.—Section 1814(a)(7)(A)(ii) (42

U.S.C. 1395f(a)(7)(A)(ii)) is amended by striking the period at the

end and inserting a semicolon.

SEC. 322. CLARIFICATION OF PHYSICIAN CERTIFICATION.

(a) CERTIFICATION BASED ON NORMAL COURSE OF ILLNESS.—

(1) IN GENERAL.—Section 1814(a) (42 U.S.C. 1395f(a)) is

amended by adding at the end the following new sentence: ‘‘The

certification regarding terminal illness of an individual under

paragraph (7) shall be based on the physician’s or medical director’s clinical judgment regarding the normal course of the individual’s illness.’’.

(2) EFFECTIVE DATE.—The amendment made by paragraph

(1) shall apply to certifications made on or after the date of the

enactment of this Act.

(b) STUDY AND REPORT ON PHYSICIAN CERTIFICATION REQUIREMENT FOR HOSPICE BENEFITS.—

(1) STUDY.—The Secretary of Health and Human Services

shall conduct a study to examine the appropriateness of the certification regarding terminal illness of an individual under section 1814(a)(7) of the Social Security Act (42 U.S.C. 1395f(a)(7))

that is required in order for such individual to receive hospice

benefits under the medicare program under title XVIII of such

Act. In conducting such study, the Secretary shall take into account the effect of the amendment made by subsection (a).

(2) REPORT.—Not later than 2 years after the date of the

enactment of this Act, the Secretary of Health and Human Services shall submit to Congress a report on the study conducted

under paragraph (1), together with any recommendations for

legislation that the Secretary deems appropriate.

SEC. 323. MEDPAC REPORT ON ACCESS TO, AND USE OF, HOSPICE BENEFIT.

(a) IN GENERAL.—The Medicare Payment Advisory Commission

shall conduct a study to examine the factors affecting the use of hospice benefits under the medicare program under title XVIII of the

Social Security Act, including a delay in the time (relative to death)

of entry into a hospice program, and differences in such use between

urban and rural hospice programs and based upon the presenting

condition of the patient.

(b) REPORT.—Not later than 18 months after the date of the enactment of this Act, the Commission shall submit to Congress a report on the study conducted under subsection (a), together with any

recommendations for legislation that the Commission deems appropriate.

Subtitle D—Other Provisions

SEC. 331. RELIEF FROM MEDICARE PART A LATE ENROLLMENT PENALTY FOR GROUP BUY-IN FOR STATE AND LOCAL RETIREES.

(a) IN GENERAL.—Section 1818 (42 U.S.C. 1395i–2) is

amended—

(1) in subsection (c)(6), by inserting before the semicolon at

the end the following: ‘‘and shall be subject to reduction in accordance with subsection (d)(6)’’; and

790

(2) by adding at the end of subsection (d) the following new

paragraph:

‘‘(6)(A) In the case where a State, a political subdivision of a

State, or an agency or instrumentality of a State or political subdivision thereof determines to pay, for the life of each individual,

the monthly premiums due under paragraph (1) on behalf of each

of the individuals in a qualified State or local government retiree

group who meets the conditions of subsection (a), the amount of any

increase otherwise applicable under section 1839(b) (as applied and

modified by subsection (c)(6) of this section) with respect to the

monthly premium for benefits under this part for an individual who

is a member of such group shall be reduced by the total amount of

taxes paid under section 3101(b) of the Internal Revenue Code of

1986 by such individual and under section 3111(b) by the employers

of such individual on behalf of such individual with respect to employment (as defined in section 3121(b) of such Code).

‘‘(B) For purposes of this paragraph, the term ‘qualified State

or local government retiree group’ means all of the individuals who

retire prior to a specified date that is before January 1, 2002, from

employment in 1 or more occupations or other broad classes of employees of—

‘‘(i) the State;

‘‘(ii) a political subdivision of the State; or

‘‘(iii) an agency or instrumentality of the State or political

subdivision of the State.’’.

(b) EFFECTIVE DATE.—The amendments made by subsection (a)

shall apply to premiums for months beginning with January 1,

2002.

TITLE IV—PROVISIONS RELATING TO PART B

Subtitle A—Hospital Outpatient Services

SEC. 401. REVISION OF HOSPITAL OUTPATIENT PPS PAYMENT UPDATE.

(a) IN GENERAL.—Section 1833(t)(3)(C)(iii) (42 U.S.C.

1395l(t)(3)(C)(iii)) is amended by striking ‘‘in each of 2000, 2001,

and 2002’’ and inserting ‘‘in each of 2000 and 2002’’.

(b) ADJUSTMENT FOR CASE MIX CHANGES.—

(1) IN GENERAL.—Section 1833(t)(3)(C) (42 U.S.C.

1395l(t)(3)(C)) is amended—

(A) by redesignating clause (iii) as clause (iv); and

(B) by inserting after clause (ii) the following new

clause:

‘‘(iii) ADJUSTMENT FOR SERVICE MIX CHANGES.—Insofar as the Secretary determines that the adjustments

for service mix under paragraph (2) for a previous year

(or estimates that such adjustments for a future year)

did (or are likely to) result in a change in aggregate

payments under this subsection during the year that

are a result of changes in the coding or classification

of covered OPD services that do not reflect real changes

in service mix, the Secretary may adjust the conversion

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quent years so as to eliminate the effect of such coding

or classification changes.’’.

(2) EFFECTIVE DATE.—The amendments made by paragraph (1) shall take effect as if included in the enactment of

BBA.

(c) SPECIAL RULE FOR PAYMENT FOR 2001.—Notwithstanding

the amendment made by subsection (a), for purposes of making payments under section 1833(t) of the Social Security Act (42 U.S.C.

1395l(t)) for covered OPD services furnished during 2001, the medicare OPD fee schedule amount under such section—

(1) for services furnished on or after January 1, 2001, and

before April 1, 2001, shall be the medicare OPD fee schedule

amount for 2001 as determined under the provisions of law in

effect on the day before the date of the enactment of this Act;

and

(2) for services furnished on or after April 1, 2001, and before January 1, 2002, shall be the fee schedule amount (as determined taking into account the amendment made by subsection (a)), increased by a transitional percentage allowance

equal to 0.32 percent (to account for the timing of implementation of the full market basket update).

SEC. 402. CLARIFYING PROCESS AND STANDARDS FOR DETERMINING

ELIGIBILITY OF DEVICES FOR PASS-THROUGH PAYMENTS

UNDER HOSPITAL OUTPATIENT PPS.

(a) IN GENERAL.—Section 1833(t)(6) (42 U.S.C. 1395l(t)(6)) is

amended—

(1) by redesignating subparagraphs (C) and (D) as subparagraphs (D) and (E), respectively; and

(2) by striking subparagraph (B) and inserting the following new subparagraphs:

‘‘(B) USE OF CATEGORIES IN DETERMINING ELIGIBILITY

OF A DEVICE FOR PASS-THROUGH PAYMENTS.—The following

provisions apply for purposes of determining whether a

medical device qualifies for additional payments under

clause (ii) or (iv) of subparagraph (A):

‘‘(i) ESTABLISHMENT OF INITIAL CATEGORIES.—

‘‘(I) IN GENERAL.—The Secretary shall initially

establish under this clause categories of medical

devices based on type of device by April 1, 2001.

Such categories shall be established in a manner

such that each medical device that meets the requirements of clause (ii) or (iv) of subparagraph

(A) as of January 1, 2001, is included in such a

category and no such device is included in more

than one category. For purposes of the preceding

sentence, whether a medical device meets such requirements as of such date shall be determined on

the basis of the program memoranda issued before

such date.

‘‘(II) AUTHORIZATION OF IMPLEMENTATION

OTHER THAN THROUGH REGULATIONS.—The categories may be established under this clause by

program memorandum or otherwise, after consultation with groups representing hospitals, manVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00795 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.006 pfrm03 PsN: HR1033
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ufacturers of medical devices, and other affected

parties.

‘‘(ii) ESTABLISHING CRITERIA FOR ADDITIONAL CAT- EGORIES.—

‘‘(I) IN GENERAL.—The Secretary shall establish criteria that will be used for creation of additional categories (other than those established

under clause (i)) through rulemaking (which may

include use of an interim final rule with comment

period).

‘‘(II) STANDARD.—Such categories shall be established under this clause in a manner such that

no medical device is described by more than one

category. Such criteria shall include a test of

whether the average cost of devices that would be

included in a category and are in use at the time

the category is established is not insignificant, as

described in subparagraph (A)(iv)(II).

‘‘(III) DEADLINE.—Criteria shall first be established under this clause by July 1, 2001. The Secretary may establish in compelling circumstances

categories under this clause before the date such

criteria are established.

‘‘(IV) ADDING CATEGORIES.—The Secretary

shall promptly establish a new category of medical

devices under this clause for any medical device

that meets the requirements of subparagraph

(A)(iv) and for which none of the categories in effect (or that were previously in effect) is appropriate.

‘‘(iii) PERIOD FOR WHICH CATEGORY IS IN EFFECT.— A category of medical devices established under clause

(i) or (ii) shall be in effect for a period of at least 2

years, but not more than 3 years, that begins—

‘‘(I) in the case of a category established under

clause (i), on the first date on which payment was

made under this paragraph for any device described by such category (including payments

made during the period before April 1, 2001); and

‘‘(II) in the case of any other category, on the

first date on which payment is made under this

paragraph for any medical device that is described

by such category.

‘‘(iv) REQUIREMENTS TREATED AS MET.—A medical

device shall be treated as meeting the requirements of

subparagraph (A)(iv), regardless of whether the device

meets the requirement of subclause (I) of such subparagraph, if—

‘‘(I) the device is described by a category established and in effect under clause (i); or

‘‘(II) the device is described by a category established and in effect under clause (ii) and an application under section 515 of the Federal Food,

Drug, and Cosmetic Act has been approved with

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respect to the device, or the device has been cleared

for market under section 510(k) of such Act, or the

device is exempt from the requirements of section

510(k) of such Act pursuant to subsection (l) or (m)

of section 510 of such Act or section 520(g) of such

Act.

Nothing in this clause shall be construed as requiring

an application or prior approval (other than that described in subclause (II)) in order for a covered device

described by a category to qualify for payment under

this paragraph.

‘‘(C) LIMITED PERIOD OF PAYMENT.— ‘‘(i) DRUGS AND BIOLOGICALS.—The payment under

this paragraph with respect to a drug or biological

shall only apply during a period of at least 2 years, but

not more than 3 years, that begins—

‘‘(I) on the first date this subsection is implemented in the case of a drug or biological described in clause (i), (ii), or (iii) of subparagraph

(A) and in the case of a drug or biological described in subparagraph (A)(iv) and for which payment under this part is made as an outpatient hospital service before such first date; or

‘‘(II) in the case of a drug or biological described in subparagraph (A)(iv) not described in

subclause (I), on the first date on which payment

is made under this part for the drug or biological

as an outpatient hospital service.

‘‘(ii) MEDICAL DEVICES.—Payment shall be made

under this paragraph with respect to a medical device

only if such device—

‘‘(I) is described by a category of medical devices established and in effect under subparagraph

(B); and

‘‘(II) is provided as part of a service (or group

of services) paid for under this subsection and provided during the period for which such category is

in effect under such subparagraph.’’.

(b) CONFORMING AMENDMENTS.—Section 1833(t) (42 U.S.C.

1395l(t)) is further amended—

(1) in paragraph (6)(A)(iv)(II), by striking ‘‘the cost of the

device, drug, or biological’’ and inserting ‘‘the cost of the drug

or biological or the average cost of the category of devices’’;

(2) in paragraph (6)(D) (as redesignated by subsection

(a)(1)), by striking ‘‘subparagraph (D)(iii)’’ in the matter preceding clause (i) and inserting ‘‘subparagraph (E)(iii)’’; and

(3) in paragraph (12)(E), by striking ‘‘additional payments

(consistent with paragraph (6)(B))’’ and inserting ‘‘additional

payments, the determination and deletion of initial and new

categories (consistent with subparagraphs (B) and (C) of paragraph (6))’’.

(c) EFFECTIVE DATE.—The amendments made by this section

take effect on the date of the enactment of this Act.

(d) TRANSITION.—

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(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 PROVIDERBASED 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 providerbased 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

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organization in relation to such hospital or critical access hospital until October 1, 2002.

(b) CONTINUING CRITERIA FOR MEETING GEOGRAPHIC LOCATION

REQUIREMENT.—Except as provided in subsection (a), in making determinations of provider-based status on or after October 1, 2000,

the following rules shall apply:

(1) The facility or organization shall be treated as satisfying any requirements and standards for geographic location

in relation to a hospital or a critical access hospital if the facility or organization—

(A) satisfies the requirements of section 413.65(d)(7) of

title 42, Code of Federal Regulations; or

(B) is located not more than 35 miles from the main

campus of the hospital or critical access hospital.

(2) The facility or organization shall be treated as satisfying any of the requirements and standards for geographic location in relation to a hospital or a critical access hospital if

the facility or organization is owned and operated by a hospital

or critical access hospital that—

(A) is owned or operated by a unit of State or local government, is a public or private nonprofit corporation that

is formally granted governmental powers by a unit of State

or local government, or is a private hospital that has a contract with a State or local government that includes the operation of clinics located off the main campus of the hospital to assure access in a well-defined service area to

health care services for low-income individuals who are not

entitled to benefits under title XVIII (or medical assistance

under a State plan under title XIX) of the Social Security

Act; and

(B) has a disproportionate share adjustment percentage

(as determined under section 1886(d)(5)(F) of such Act (42

U.S.C. 1395ww(d)(5)(F))) greater than 11.75 percent or is

described in clause (i)(II) of such section.

(c) TEMPORARY CRITERIA.—For purposes of title XVIII of the Social Security Act, a facility or organization for which a determination of provider-based status in relation to a hospital or critical access hospital is requested on or after October 1, 2000, and before October 1, 2002, shall be treated as having provider-based status in

relation to such a hospital or a critical access hospital for any period before a determination is made with respect to such status pursuant to such request.

(d) DEFINITIONS.—For purposes of this section, the terms ‘‘hospital’’ and ‘‘critical access hospital’’ have the meanings given such

terms in subsections (e) and (mm)(1), respectively, of section 1861 of

the Social Security Act (42 U.S.C. 1395x).

SEC. 405. TREATMENT OF CHILDREN’S HOSPITALS UNDER PROSPECTIVE PAYMENT SYSTEM.

(a) IN GENERAL.—Section 1833(t) (42 U.S.C. 1395l(t)) is

amended—

(1) in the heading of paragraph (7)(D)(ii), by inserting ‘‘AND

CHILDREN’S HOSPITALS’’ after ‘‘CANCER HOSPITALS’’; and

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(2) in paragraphs (7)(D)(ii) and (11), by striking ‘‘section

1886(d)(1)(B)(v)’’ and inserting ‘‘clause (iii) or (v) of section

1886(d)(1)(B)’’.

(b) EFFECTIVE DATE.—The amendments made by subsection (a)

shall apply as if included in the enactment of section 202 of BBRA

(113 Stat. 1501A–342).

SEC. 406. INCLUSION OF TEMPERATURE MONITORED CRYOABLATION

IN TRANSITIONAL PASS-THROUGH FOR CERTAIN MEDICAL

DEVICES, DRUGS, AND BIOLOGICALS UNDER OPD PPS.

(a) IN GENERAL.—Section 1833(t)(6)(A)(ii) (42 U.S.C.

1395l(t)(6)(A)(ii)) is amended by inserting ‘‘or temperature monitored cryoablation’’ after ‘‘device of brachytherapy’’.

(b) EFFECTIVE DATE.—The amendment made by subsection (a)

shall apply to devices furnished on or after April 1, 2001.

Subtitle B—Provisions Relating to Physicians’ Services

SEC. 411. GAO STUDIES RELATING TO PHYSICIANS’ SERVICES.

(a) STUDY OF SPECIALIST PHYSICIANS’ SERVICES FURNISHED IN

PHYSICIANS’ OFFICES AND HOSPITAL OUTPATIENT DEPARTMENT

SERVICES.—

(1) STUDY.—The Comptroller General of the United States

shall conduct a study to examine the appropriateness of furnishing in physicians’ offices specialist physicians’ services

(such as gastrointestinal endoscopic physicians’ services) which

are ordinarily furnished in hospital outpatient departments. In

conducting this study, the Comptroller General shall—

(A) review available scientific and clinical evidence

about the safety of performing procedures in physicians’ offices and hospital outpatient departments;

(B) assess whether resource-based practice expense relative values established by the Secretary of Health and

Human Services under the medicare physician fee schedule

under section 1848 of the Social Security Act (42 U.S.C.

1395w–4) for such specialist physicians’ services furnished

in physicians’ offices and hospital outpatient departments

create an incentive to furnish such services in physicians’

offices instead of hospital outpatient departments; and

(C) assess the implications for access to care for medicare beneficiaries if the medicare program were not to cover

such services in physicians’ offices.

(2) REPORT.—Not later than July 1, 2001, the Comptroller

General shall submit to Congress a report on such study and

include such recommendations as the Comptroller General determines to be appropriate.

(b) STUDY OF THE RESOURCE-BASED PRACTICE EXPENSE SYS- TEM.— (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).

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(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.—

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‘‘(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.

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‘‘(3) ADDITIONAL BONUS FOR PROCESS AND OUTCOME IMPROVEMENTS.—At such time as the Secretary has established

appropriate criteria based on evidence the Secretary determines

to be sufficient, the Secretary shall also pay to a participating

health care group (subject to paragraph (4)) an additional

bonus for a year, equal to such portion as the Secretary may

designate of the saving to the program under this title resulting

from process improvements made by and patient outcome improvements attributable to activities of the group.

‘‘(4) LIMITATION.—The Secretary shall limit bonus payments under this section as necessary to ensure that the aggregate expenditures under this title (inclusive of bonus payments)

with respect to patients within the scope of the demonstration

do not exceed the amount which the Secretary estimates would

be expended if the demonstration projects under this section

were not implemented.

‘‘PROVISIONS FOR ADMINISTRATION OF DEMONSTRATION PROGRAM

‘‘SEC. 1866B. (a) GENERAL ADMINISTRATIVE AUTHORITY.—

‘‘(1) BENEFICIARY ELIGIBILITY.—Except as otherwise provided by the Secretary, an individual shall only be eligible to

receive benefits under the program under section 1866A (in this

section referred to as the ‘demonstration program’) if such

individual—

‘‘(A) is enrolled under the program under part B and

entitled to benefits under part A; and

‘‘(B) is not enrolled in a Medicare+Choice plan under

part C, an eligible organization under a contract under section 1876 (or a similar organization operating under a

demonstration project authority), an organization with an

agreement under section 1833(a)(1)(A), or a PACE program

under section 1894.

‘‘(2) SECRETARY’S DISCRETION AS TO SCOPE OF PROGRAM.—

The Secretary may limit the implementation of the demonstration program to—

‘‘(A) a geographic area (or areas) that the Secretary

designates for purposes of the program, based upon such

criteria as the Secretary finds appropriate;

‘‘(B) a subgroup (or subgroups) of beneficiaries or individuals and entities furnishing items or services (otherwise

eligible to participate in the program), selected on the basis

of the number of such participants that the Secretary finds

consistent with the effective and efficient implementation of

the program;

‘‘(C) an element (or elements) of the program that the

Secretary determines to be suitable for implementation; or

‘‘(D) any combination of any of the limits described in

subparagraphs (A) through (C).

‘‘(3) VOLUNTARY RECEIPT OF ITEMS AND SERVICES.—Items

and services shall be furnished to an individual under the demonstration program only at the individual’s election.

‘‘(4) AGREEMENTS.—The Secretary is authorized to enter

into agreements with individuals and entities to furnish health

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care items and services to beneficiaries under the demonstration

program.

‘‘(5) PROGRAM STANDARDS AND CRITERIA.—The Secretary

shall establish performance standards for the demonstration

program including, as applicable, standards for quality of

health care items and services, cost-effectiveness, beneficiary

satisfaction, and such other factors as the Secretary finds appropriate. The eligibility of individuals or entities for the initial

award, continuation, and renewal of agreements to provide

health care items and services under the program shall be conditioned, at a minimum, on performance that meets or exceeds

such standards.

‘‘(6) ADMINISTRATIVE REVIEW OF DECISIONS AFFECTING INDIVIDUALS AND ENTITIES FURNISHING SERVICES.—An individual

or entity furnishing services under the demonstration program

shall be entitled to a review by the program administrator (or,

if the Secretary has not contracted with a program administrator, by the Secretary) of a decision not to enter into, or to terminate, or not to renew, an agreement with the entity to provide

health care items or services under the program.

‘‘(7) SECRETARY’S REVIEW OF MARKETING MATERIALS.—An

agreement with an individual or entity furnishing services

under the demonstration program shall require the individual

or entity to guarantee that it will not distribute materials that

market items or services under the program without the Secretary’s prior review and approval.

‘‘(8) PAYMENT IN FULL.—

‘‘(A) IN GENERAL.—Except as provided in subparagraph

(B), an individual or entity receiving payment from the Secretary under a contract or agreement under the demonstration program shall agree to accept such payment as payment in full, and such payment shall be in lieu of any payments to which the individual or entity would otherwise be

entitled under this title.

‘‘(B) COLLECTION OF DEDUCTIBLES AND COINSURANCE.—Such individual or entity may collect any applicable deductible or coinsurance amount from a beneficiary.

‘‘(b) CONTRACTS FOR PROGRAM ADMINISTRATION.—

‘‘(1) IN GENERAL.—The Secretary may administer the demonstration program through a contract with a program administrator in accordance with the provisions of this subsection.

‘‘(2) SCOPE OF PROGRAM ADMINISTRATOR CONTRACTS.—The

Secretary may enter into such contracts for a limited geographic

area, or on a regional or national basis.

‘‘(3) ELIGIBLE CONTRACTORS.—The Secretary may contract

for the administration of the program with—

‘‘(A) an entity that, under a contract under section 1816

or 1842, determines the amount of and makes payments for

health care items and services furnished under this title; or

‘‘(B) any other entity with substantial experience in

managing the type of program concerned.

‘‘(4) CONTRACT AWARD, DURATION, AND RENEWAL.—

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‘‘(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 ENTI- TIES ADMINISTERING PART A OR PART B PAYMENTS.—The

Secretary may enter or renew a contract under this subsection with an entity described in paragraph (3)(A) without regard to the requirements of section 5 of title 41,

United States Code.

‘‘(5) APPLICABILITY OF FEDERAL ACQUISITION REGULATION.— The Federal Acquisition Regulation shall apply to program administration contracts under this subsection.

‘‘(6) PERFORMANCE STANDARDS.—The Secretary shall establish performance standards for the program administrator including, as applicable, standards for the quality and cost-effectiveness of the program administered, and such other factors as

the Secretary finds appropriate. The eligibility of entities for the

initial award, continuation, and renewal of program administration contracts shall be conditioned, at a minimum, on performance that meets or exceeds such standards.

‘‘(7) FUNCTIONS OF PROGRAM ADMINISTRATOR.—A program

administrator shall perform any or all of the following functions, as specified by the Secretary:

‘‘(A) AGREEMENTS WITH ENTITIES FURNISHING HEALTH

CARE ITEMS AND SERVICES.—Determine the qualifications of

entities seeking to enter or renew agreements to provide

services under the demonstration program, and as appropriate enter or renew (or refuse to enter or renew) such

agreements on behalf of the Secretary.

‘‘(B) ESTABLISHMENT OF PAYMENT RATES.—Negotiate or

otherwise establish, subject to the Secretary’s approval, payment rates for covered health care items and services.

‘‘(C) PAYMENT OF CLAIMS OR FEES.—Administer payments for health care items or services furnished under the

program.

‘‘(D) PAYMENT OF BONUSES.—Using such guidelines as

the Secretary shall establish, and subject to the approval of

the Secretary, make bonus payments as described in subsection (c)(2)(A)(ii) to entities furnishing items or services

for which payment may be made under the program.

‘‘(E) OVERSIGHT.—Monitor the compliance of individuals and entities with agreements under the program with

the conditions of participation.

‘‘(F) ADMINISTRATIVE REVIEW.—Conduct reviews of adverse determinations specified in subsection (a)(6).

‘‘(G) REVIEW OF MARKETING MATERIALS.—Conduct a review of marketing materials proposed by an entity furnishing services under the program.

‘‘(H) ADDITIONAL FUNCTIONS.—Perform such other

functions as the Secretary may specify.

‘‘(8) LIMITATION OF LIABILITY.—The provisions of section

1157(b) shall apply with respect to activities of contractors and

their officers, employees, and agents under a contract under this

subsection.

802

‘‘(9) INFORMATION SHARING.—Notwithstanding section 1106

and section 552a of title 5, United States Code, the Secretary

is authorized to disclose to an entity with a program administration contract under this subsection such information (including medical information) on individuals receiving health care

items and services under the program as the entity may require

to carry out its responsibilities under the contract.

‘‘(c) RULES APPLICABLE TO BOTH PROGRAM AGREEMENTS AND

PROGRAM ADMINISTRATION CONTRACTS.—

‘‘(1) RECORDS, REPORTS, AND AUDITS.—The Secretary is authorized to require entities with agreements to provide health

care items or services under the demonstration program, and

entities with program administration contracts under subsection (b), to maintain adequate records, to afford the Secretary access to such records (including for audit purposes), and

to furnish such reports and other materials (including audited

financial statements and performance data) as the Secretary

may require for purposes of implementation, oversight, and

evaluation of the program and of individuals’ and entities’ effectiveness in performance of such agreements or contracts.

‘‘(2) BONUSES.—Notwithstanding any other provision of

law, but subject to subparagraph (B)(ii), the Secretary may

make bonus payments under the demonstration program from

the Federal Health Insurance Trust Fund and the Federal Supplementary Medical Insurance Trust Fund in amounts that do

not exceed the amounts authorized under the program in accordance with the following:

‘‘(A) PAYMENTS TO PROGRAM ADMINISTRATORS.—The

Secretary may make bonus payments under the program to

program administrators.

‘‘(B) PAYMENTS TO ENTITIES FURNISHING SERVICES.—

‘‘(i) IN GENERAL.—Subject to clause (ii), the Secretary may make bonus payments to individuals or entities furnishing items or services for which payment

may be made under the demonstration program, or

may authorize the program administrator to make

such bonus payments in accordance with such guidelines as the Secretary shall establish and subject to the

Secretary’s approval.

‘‘(ii) LIMITATIONS.—The Secretary may condition

such payments on the achievement of such standards

related to efficiency, improvement in processes or outcomes of care, or such other factors as the Secretary determines to be appropriate.

‘‘(3) ANTIDISCRIMINATION LIMITATION.—The Secretary shall

not enter into an agreement with an entity to provide health

care items or services under the demonstration program, or

with an entity to administer the program, unless such entity

guarantees that it will not deny, limit, or condition the coverage

or provision of benefits under the program, for individuals eligible to be enrolled under such program, based on any health status-related factor described in section 2702(a)(1) of the Public

Health Service Act.

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‘‘(d) LIMITATIONS ON JUDICIAL REVIEW.—The following actions

and determinations with respect to the demonstration program shall

not be subject to review by a judicial or administrative tribunal:

‘‘(1) Limiting the implementation of the program under

subsection (a)(2).

‘‘(2) Establishment of program participation standards

under subsection (a)(5) or the denial or termination of, or refusal to renew, an agreement with an entity to provide health

care items and services under the program.

‘‘(3) Establishment of program administration contract performance standards under subsection (b)(6), the refusal to

renew a program administration contract, or the noncompetitive

award or renewal of a program administration contract under

subsection (b)(4)(B).

‘‘(4) Establishment of payment rates, through negotiation or

otherwise, under a program agreement or a program administration contract.

‘‘(5) A determination with respect to the program (where

specifically authorized by the program authority or by subsection (c)(2))—

‘‘(A) as to whether cost savings have been achieved, and

the amount of savings; or

‘‘(B) as to whether, to whom, and in what amounts bonuses will be paid.

‘‘(e) APPLICATION LIMITED TO PARTS A AND B.—None of the provisions of this section or of the demonstration program shall apply

to the programs under part C.

‘‘(f) REPORTS TO CONGRESS.—Not later than two years after the

date of the enactment of this section, and biennially thereafter for

six years, the Secretary shall report to Congress on the use of authorities under the demonstration program. Each report shall address the impact of the use of those authorities on expenditures, access, and quality under the programs under this title.’’.

(b) GAO REPORT.—Not later than 2 years after the date on

which the demonstration project under section 1866A of the Social

Security Act, as added by subsection (a), is implemented, the Comptroller General of the United States shall submit to Congress a report on such demonstration project. The report shall include such

recommendations with respect to changes to the demonstration

project that the Comptroller General determines appropriate.

SEC. 413. STUDY ON ENROLLMENT PROCEDURES FOR GROUPS THAT

RETAIN INDEPENDENT CONTRACTOR PHYSICIANS.

(a) IN GENERAL.—The Comptroller General of the United States

shall conduct a study of the current medicare enrollment process for

groups that retain independent contractor physicians with particular emphasis on hospital-based physicians, such as emergency

department staffing groups. In conducting the evaluation, the

Comptroller General shall consult with groups that retain independent contractor physicians and shall—

(1) review the issuance of individual medicare provider

numbers and the possible medicare program integrity

vulnerabilities of the current process;

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(2) review direct and indirect costs associated with the current process incurred by the medicare program and groups that

retain independent contractor physicians;

(3) assess the effect on program integrity by the enrollment

of groups that retain independent contractor hospital-based

physicians; and

(4) develop suggested procedures for the enrollment of these

groups.

(b) REPORT.—Not later than 1 year after the date of the enactment of this Act, the Comptroller General shall submit to Congress

a report on the study conducted under subsection (a).

Subtitle C—Other Services

SEC. 421. 1-YEAR EXTENSION OF MORATORIUM ON THERAPY CAPS; REPORT ON STANDARDS FOR SUPERVISION OF PHYSICAL

THERAPY ASSISTANTS.

(a) IN GENERAL.—Section 1833(g)(4) (42 U.S.C. 1395l(g)(4)) is

amended by striking ‘‘2000 and 2001.’’ and inserting ‘‘2000, 2001,

and 2002.’’.

(b) CONFORMING AMENDMENT TO CONTINUE FOCUSED MEDICAL

REVIEWS OF CLAIMS DURING MORATORIUM PERIOD.—Section

221(a)(2) of BBRA (113 Stat. 1501A–351) is amended by striking

‘‘(under the amendment made by paragraph (1)(B))’’.

(c) STUDY ON STANDARDS FOR SUPERVISION OF PHYSICAL THER- APIST 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.

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(C) PROTECTION OF APPROVED EXCEPTION RATES.—Any

exception rate under such section in effect on December 31,

2000 (or, in the case of an application under subparagraph

(B), as approved under such application) shall continue in

effect so long as such rate is greater than the composite rate

as updated by the amendment made by paragraph (1).

(b) DEVELOPMENT OF ESRD MARKET BASKET.— (1) DEVELOPMENT.—The Secretary of Health and Human

Services shall collect data and develop an ESRD market basket

whereby the Secretary can estimate, before the beginning of a

year, the percentage by which the costs for the year of the mix

of labor and nonlabor goods and services included in the ESRD

composite rate under section 1881(b)(7) of the Social Security

Act (42 U.S.C. 1395rr(b)(7)) will exceed the costs of such mix of

goods and services for the preceding year. In developing such

index, the Secretary may take into account measures of changes

in—

(A) technology used in furnishing dialysis services;

(B) the manner or method of furnishing dialysis services; and

(C) the amounts by which the payments under such

section for all services billed by a facility for a year exceed

the aggregate allowable audited costs of such services for

such facility for such year.

(2) REPORT.—The Secretary of Health and Human Services

shall submit to Congress a report on the index developed under

paragraph (1) no later than July 1, 2002, and shall include in

the report recommendations on the appropriateness of an annual or periodic update mechanism for renal dialysis services

under the medicare program under title XVIII of the Social Security Act based on such index.

(c) INCLUSION OF ADDITIONAL SERVICES IN COMPOSITE RATE.— (1) DEVELOPMENT.—The Secretary of Health and Human

Services shall develop a system which includes, to the maximum extent feasible, in the composite rate used for payment

under section 1881(b)(7) of the Social Security Act (42 U.S.C.

1395rr(b)(7)), payment for clinical diagnostic laboratory tests

and drugs (including drugs paid under section 1881(b)(11)(B)

of such Act (42 U.S.C. 1395rr(b)(11)(B)) that are routinely used

in furnishing dialysis services to medicare beneficiaries but

which are currently separately billable by renal dialysis facilities.

(2) REPORT.—The Secretary shall include, as part of the report submitted under subsection (b)(2), a report on the system

developed under paragraph (1) and recommendations on the

appropriateness of incorporating the system into medicare payment for renal dialysis services.

(d) GAO STUDY ON ACCESS TO SERVICES.—

(1) STUDY.—The Comptroller General of the United States

shall study access of medicare beneficiaries to renal dialysis

services. Such study shall include whether there is a sufficient

supply of facilities to furnish needed renal dialysis services,

whether medicare payment levels are appropriate, taking into

account audited costs of facilities for all services furnished, to

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ensure continued access to such services, and improvements in

access (and quality of care) that may result in the increased use

of long nightly and short daily hemodialysis modalities.

(2) REPORT.—Not later than January 1, 2003, the Comptroller General shall submit to Congress a report on the study

conducted under paragraph (1).

(e) SPECIAL RULE FOR PAYMENT FOR 2001.—Notwithstanding

the amendment made by subsection (a)(1), for purposes of making

payments under section 1881(b) of the Social Security Act (42

U.S.C. 1395rr(b)) for dialysis services furnished during 2001, the

composite rate payment under paragraph (7) of such section—

(1) for services furnished on or after January 1, 2001, and

before April 1, 2001, shall be the composite rate payment determined under the provisions of law in effect on the day before

the date of the enactment of this Act; and

(2) for services furnished on or after April 1, 2001, and before January 1, 2002, shall be the composite rate payment (as

determined taking into account the amendment made by subsection (a)(1)) increased by a transitional percentage allowance

equal to 0.39 percent (to account for the timing of implementation of the CPI update).

SEC. 423. PAYMENT FOR AMBULANCE SERVICES.

(a) RESTORATION OF FULL CPI INCREASE FOR 2001.—

(1) IN GENERAL.—Section 1834(l)(3) (42 U.S.C. 1395m(l)(3))

is amended by striking ‘‘reduced in the case of 2001 and 2002’’

each place it appears and inserting ‘‘reduced in the case of

2002’’.

(2) SPECIAL RULE FOR PAYMENT FOR 2001.—Notwithstanding the amendment made by paragraph (1), for purposes

of making payments for ambulance services under part B of

title XVIII of the Social Security Act, for services furnished during 2001, the ‘‘percentage increase in the consumer price index’’

specified in section 1834(l)(3)(B) of such Act (42 U.S.C.

1395m(l)(3)(B))—

(A) for services furnished on or after January 1, 2001,

and before July 1, 2001, shall be the percentage increase for

2001 as determined under the provisions of law in effect on

the day before the date of the enactment of this Act; and

(B) for services furnished on or after July 1, 2001, and

before January 1, 2002, shall be equal to 4.7 percent.

(b) MILEAGE PAYMENTS.—

(1) IN GENERAL.—Section 1834(l)(2)(E) (42 U.S.C.

1395m(l)(2)(E)) is amended by inserting before the period at the

end the following: ‘‘, except that such phase-in shall provide for

full payment of any national mileage rate for ambulance services provided by suppliers that are paid by carriers in any of

the 50 States where payment by a carrier for such services for

all such suppliers in such State did not, prior to the implementation of the fee schedule, include a separate amount for all

mileage within the county from which the beneficiary is transported’’.

(2) EFFECTIVE DATE.—The amendment made by paragraph

(1) shall apply to services furnished on or after July 1, 2001.

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SEC. 424. AMBULATORY SURGICAL CENTERS.

(a) DELAY IN IMPLEMENTATION OF PROSPECTIVE PAYMENT SYS- TEM.—The Secretary of Health and Human Services may not implement a revised prospective payment system for services of ambulatory surgical facilities under section 1833(i) of the Social Security

Act (42 U.S.C. 1395l(i)) before January 1, 2002.

(b) EXTENDING PHASE-IN TO 4 YEARS.—Section 226 of the

BBRA (113 Stat. 1501A–354) is amended by striking paragraphs (1)

and (2) and inserting the following:

‘‘(1) in the first year of its implementation, only a proportion (specified by the Secretary and not to exceed 1⁄4) of the payment for such services shall be made in accordance with such

system and the remainder shall be made in accordance with

current regulations; and

‘‘(2) in each of the following 2 years a proportion (specified

by the Secretary and not to exceed 1⁄2, and 3⁄4, respectively) of

the payment for such services shall be made under such system

and the remainder shall be made in accordance with current

regulations.’’.

(c) DEADLINE FOR USE OF 1999 OR LATER COST SURVEYS.—Section 226 of BBRA (113 Stat. 1501A–354) is amended by adding at

the end the following:

‘‘By not later than January 1, 2003, the Secretary shall incorporate

data from a 1999 medicare cost survey or a subsequent cost survey

for purposes of implementing or revising such system.’’.

SEC. 425. FULL UPDATE FOR DURABLE MEDICAL EQUIPMENT.

(a) IN GENERAL.—Section 1834(a)(14) (42 U.S.C. 1395m(a)(14))

is amended—

(1) by redesignating subparagraph (D) as subparagraph

(F);

(2) in subparagraph (C)—

(A) by striking ‘‘through 2002’’ and inserting ‘‘through

2000’’; and

(B) by striking ‘‘and’’ at the end; and

(3) by inserting after subparagraph (C) the following new

subparagraphs:

‘‘(D) for 2001, the percentage increase in the consumer

price index for all urban consumers (U.S. city average) for

the 12-month period ending with June 2000;

‘‘(E) for 2002, 0 percentage points; and’’.

(b) SPECIAL RULE FOR PAYMENT FOR 2001.—Notwithstanding

the amendments made by subsection (a), for purposes of making

payments for durable medical equipment under section 1834(a) of

the Social Security Act (42 U.S.C. 1395m(a)), other than for oxygen

and oxygen equipment specified in paragraph (9) of such section, the

payment basis recognized for 2001 under such section—

(1) for items furnished on or after January 1, 2001, and before July 1, 2001, shall be the payment basis for 2001 as determined under the provisions of law in effect on the day before

the date of the enactment of this Act (including the application

of section 228(a)(1) of BBRA); and

(2) for items furnished on or after July 1, 2001, and before

January 1, 2002, shall be the payment basis that is determined

under such section 1834(a) if such section 228(a)(1) did not

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apply and taking into account the amendment made by subsection (a), increased by a transitional percentage allowance

equal to 3.28 percent (to account for the timing of implementation of the CPI update).

SEC. 426. FULL UPDATE FOR ORTHOTICS AND PROSTHETICS.

(a) IN GENERAL.—Section 1834(h)(4)(A) (42 U.S.C.

1395m(h)(4)(A)) is amended—

(1) by redesignating clause (vi) as clause (viii);

(2) in clause (v)—

(A) by striking ‘‘through 2002’’ and inserting ‘‘through

2000’’; and

(B) by striking ‘‘and’’ at the end; and

(3) by inserting after clause (v) the following new clause:

‘‘(vi) for 2001, the percentage increase in the consumer price index for all urban consumers (U.S. city

average) for the 12-month period ending with June

2000;

‘‘(vii) for 2002, 1 percent; and’’.

(b) SPECIAL RULE FOR PAYMENT FOR 2001.—Notwithstanding

the amendments made by subsection (a), for purposes of making

payments for prosthetic devices and orthotics and prosthetics (as defined in subparagraphs (B) and (C) of paragraph (4) of section

1834(h) of the Social Security Act (42 U.S.C. 1395m(h)) under such

section, the payment basis recognized for 2001 under paragraph (2)

of such section—

(1) for items furnished on or after January 1, 2001, and before July 1, 2001, shall be the payment basis for 2001 as determined under the provisions of law in effect on the day before

the date of the enactment of this Act; and

(2) for items furnished on or after July 1, 2001, and before

January 1, 2002, shall be the payment basis that is determined

under such section taking into account the amendments made

by subsection (a), increased by a transitional percentage allowance equal to 2.6 percent (to account for the timing of implementation of the CPI update).

SEC. 427. ESTABLISHMENT OF SPECIAL PAYMENT PROVISIONS AND

REQUIREMENTS FOR PROSTHETICS AND CERTAIN CUSTOM-FABRICATED ORTHOTIC ITEMS.

(a) IN GENERAL.—Section 1834(h)(1) (42 U.S.C. 1395m(h)(1)) is

amended by adding at the end the following:

‘‘(F) SPECIAL PAYMENT RULES FOR CERTAIN PROSTHETICS AND CUSTOM-FABRICATED ORTHOTICS.—

‘‘(i) IN GENERAL.—No payment shall be made

under this subsection for an item of custom-fabricated

orthotics described in clause (ii) or for an item of prosthetics unless such item is—

‘‘(I) furnished by a qualified practitioner; and

‘‘(II) fabricated by a qualified practitioner or a

qualified supplier at a facility that meets such criteria as the Secretary determines appropriate.

‘‘(ii) DESCRIPTION OF CUSTOM-FABRICATED ITEM.—

‘‘(I) IN GENERAL.—An item described in this

clause is an item of custom-fabricated orthotics

that requires education, training, and experience to

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custom-fabricate and that is included in a list established by the Secretary in subclause (II). Such

an item does not include shoes and shoe inserts.

‘‘(II) LIST OF ITEMS.—The Secretary, in consultation with appropriate experts in orthotics (including national organizations representing manufacturers of orthotics), shall establish and update

as appropriate a list of items to which this subparagraph applies. No item may be included in

such list unless the item is individually fabricated

for the patient over a positive model of the patient.

‘‘(iii) QUALIFIED PRACTITIONER DEFINED.—In this

subparagraph, the term ‘qualified practitioner’ means a

physician or other individual who—

‘‘(I) is a qualified physical therapist or a qualified occupational therapist;

‘‘(II) in the case of a State that provides for the

licensing of orthotics and prosthetics, is licensed in

orthotics or prosthetics by the State in which the

item is supplied; or

‘‘(III) in the case of a State that does not provide for the licensing of orthotics and prosthetics,

is specifically trained and educated to provide or

manage the provision of prosthetics and custom-designed or -fabricated orthotics, and is certified by

the American Board for Certification in Orthotics

and Prosthetics, Inc. or by the Board for Orthotist/

Prosthetist Certification, or is credentialed and approved by a program that the Secretary determines, in consultation with appropriate experts in

orthotics and prosthetics, has training and education standards that are necessary to provide

such prosthetics and orthotics.

‘‘(iv) QUALIFIED SUPPLIER DEFINED.—In this subparagraph, the term ‘qualified supplier’ means any entity that is accredited by the American Board for Certification in Orthotics and Prosthetics, Inc. or by the

Board for Orthotist/Prosthetist Certification, or accredited and approved by a program that the Secretary determines has accreditation and approval standards

that are essentially equivalent to those of such Board.’’.

(b) EFFECTIVE DATE.—Not later than 1 year after the date of

the enactment of this Act, the Secretary of Health and Human Services shall promulgate revised regulations to carry out the amendment made by subsection (a) using a negotiated rulemaking process

under subchapter III of chapter 5 of title 5, United States Code.

(c) GAO STUDY AND REPORT.—

(1) STUDY.—The Comptroller General of the United States

shall conduct a study on HCFA Ruling 96–1, issued on September 1, 1996, with respect to distinguishing orthotics from

durable medical equipment under the medicare program under

title XVIII of the Social Security Act. The study shall assess the

following matters:

810

(A) The compliance of the Secretary of Health and

Human Services with the Administrative Procedures Act

(under chapter 5 of title 5, United States Code) in making

such ruling.

(B) The potential impact of such ruling on the health

care furnished to medicare beneficiaries under the medicare

program, especially those beneficiaries with degenerative

musculoskeletal conditions.

(C) The potential for fraud and abuse under the medicare program if payment were provided for orthotics used

as a component of durable medical equipment only when

made under the special payment provision for certain prosthetics and custom-fabricated orthotics under section

1834(h)(1)(F) of the Social Security Act, as added by subsection (a) and furnished by qualified practitioners under

that section.

(D) The impact on payments under titles XVIII and

XIX of the Social Security Act if such ruling were overturned.

(2) REPORT.—Not later than 6 months after the date of the

enactment of this Act, the Comptroller General shall submit to

Congress a report on the study conducted under paragraph (1).

SEC. 428. REPLACEMENT OF PROSTHETIC DEVICES AND PARTS.

(a) IN GENERAL.—Section 1834(h)(1) (42 U.S.C. 1395m(h)(1)),

as amended by section 427(a), is further amended by adding at the

end the following new subparagraph:

‘‘(G) REPLACEMENT OF PROSTHETIC DEVICES AND

PARTS.—

‘‘(i) IN GENERAL.—Payment shall be made for the

replacement of prosthetic devices which are artificial

limbs, or for the replacement of any part of such devices, without regard to continuous use or useful lifetime restrictions if an ordering physician determines

that the provision of a replacement device, or a replacement part of such a device, is necessary because of any

of the following:

‘‘(I) A change in the physiological condition of

the patient.

‘‘(II) An irreparable change in the condition of

the device, or in a part of the device.

‘‘(III) The condition of the device, or the part

of the device, requires repairs and the cost of such

repairs would be more than 60 percent of the cost

of a replacement device, or, as the case may be, of

the part being replaced.

‘‘(ii) CONFIRMATION MAY BE REQUIRED IF DEVICE

OR PART BEING REPLACED IS LESS THAN 3 YEARS OLD.—

If a physician determines that a replacement device, or

a replacement part, is necessary pursuant to clause

(i)—

‘‘(I) such determination shall be controlling;

and

811

‘‘(II) such replacement device or part shall be

deemed to be reasonable and necessary for purposes of section 1862(a)(1)(A);

except that if the device, or part, being replaced is less

than 3 years old (calculated from the date on which the

beneficiary began to use the device or part), the Secretary may also require confirmation of necessity of the

replacement device or replacement part, as the case

may be.’’.

(b) PREEMPTION OF RULE.—The provisions of section

1834(h)(1)(G) as added by subsection (a) shall supersede any rule

that as of the date of the enactment of this Act may have applied

a 5-year replacement rule with regard to prosthetic devices.

(c) EFFECTIVE DATE.—The amendment made by subsection (a)

shall apply to items replaced on or after April 1, 2001.

SEC. 429. REVISED PART B PAYMENT FOR DRUGS AND BIOLOGICALS

AND RELATED SERVICES.

(a) RECOMMENDATIONS FOR REVISED PAYMENT METHODOLOGY

FOR DRUGS AND BIOLOGICALS.—

(1) STUDY.—

(A) IN GENERAL.—The Comptroller General of the

United States shall conduct a study on the reimbursement

for drugs and biologicals under the current medicare payment methodology (provided under section 1842(o) of the

Social Security Act (42 U.S.C. 1395u(o))) and for related

services under part B of title XVIII of such Act. In the

study, the Comptroller General shall—

(i) identify the average prices at which such drugs

and biologicals are acquired by physicians and other

suppliers;

(ii) quantify the difference between such average

prices and the reimbursement amount under such section; and

(iii) determine the extent to which (if any) payment

under such part is adequate to compensate physicians,

providers of services, or other suppliers of such drugs

and biologicals for costs incurred in the administration, handling, or storage of such drugs or biologicals.

(B) CONSULTATION.—In conducting the study under

subparagraph (A), the Comptroller General shall consult

with physicians, providers of services, and suppliers of

drugs and biologicals under the medicare program under

title XVIII of such Act, as well as other organizations involved in the distribution of such drugs and biologicals to

such physicians, providers of services, and suppliers.

(2) REPORT.—Not later than 9 months after the date of the

enactment of this Act, the Comptroller General shall submit to

Congress and to the Secretary of Health and Human Services

a report on the study conducted under this subsection, and

shall include in such report recommendations for revised payment methodologies described in paragraph (3).

(3) RECOMMENDATIONS FOR REVISED PAYMENT METHODOLOGIES.—

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(A) IN GENERAL.—The Comptroller General shall provide specific recommendations for revised payment methodologies for reimbursement for drugs and biologicals and

for related services under the medicare program. The

Comptroller General may include in the

recommendations—

(i) proposals to make adjustments under subsection

(c) of section 1848 of the Social Security Act (42 U.S.C.

1395w–4) for the practice expense component of the

physician fee schedule under such section for the costs

incurred in the administration, handling, or storage of

certain categories of such drugs and biologicals, if appropriate; and

(ii) proposals for new payments to providers of

services or suppliers for such costs, if appropriate.

(B) ENSURING PATIENT ACCESS TO CARE.—In making

recommendations under this paragraph, the Comptroller

General shall ensure that any proposed revised payment

methodology is designed to ensure that medicare beneficiaries continue to have appropriate access to health care

services under the medicare program.

(C) MATTERS CONSIDERED.—In making recommendations under this paragraph, the Comptroller General shall

consider—

(i) the method and amount of reimbursement for

similar drugs and biologicals made by large group

health plans;

(ii) as a result of any revised payment methodology, the potential for patients to receive inpatient or

outpatient hospital services in lieu of services in a physician’s office; and

(iii) the effect of any revised payment methodology

on the delivery of drug therapies by hospital outpatient

departments.

(D) COORDINATION WITH BBRA STUDY.—In making recommendations under this paragraph, the Comptroller General shall conclude and take into account the results of the

study provided for under section 213(a) of BBRA (113 Stat.

1501A–350).

(b) IMPLEMENTATION OF NEW PAYMENT METHODOLOGY.—

(1) IN GENERAL.—Notwithstanding any other provision of

law, based on the recommendations contained in the report

under subsection (a), the Secretary of Health and Human Services, subject to paragraph (2), shall revise the payment methodology under section 1842(o) of the Social Security Act (42 U.S.C.

1395u(o)) for drugs and biologicals furnished under part B of

the medicare program. To the extent the Secretary determines

appropriate, the Secretary may provide for the adjustments to

payments amounts referred to in subsection (a)(3)(A)(i) or additional payments referred to in subsection (a)(2)(A)(ii).

(2) LIMITATION.—In revising the payment methodology

under paragraph (1), in no case may the estimated aggregate

payments for drugs and biologicals under the revised system

(including additional payments referred to in subsection

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(a)(3)(A)(ii)) exceed the aggregate amount of payment for such

drugs and biologicals, as projected by the Secretary, that would

have been made under the payment methodology in effect under

such section 1842(o).

(c) MORATORIUM ON DECREASES IN PAYMENT RATES.—Notwithstanding any other provision of law, effective for drugs and

biologicals furnished on or after January 1, 2001, the Secretary may

not directly or indirectly decrease the rates of reimbursement (in effect as of such date) for drugs and biologicals under the current

medicare payment methodology (provided under section 1842(o) of

the Social Security Act (42 U.S.C. 1395u(o))) until such time as the

Secretary has reviewed the report submitted under subsection (a)(2).

SEC. 430. CONTRAST ENHANCED DIAGNOSTIC PROCEDURES UNDER

HOSPITAL PROSPECTIVE PAYMENT SYSTEM.

(a) SEPARATE CLASSIFICATION.—Section 1833(t)(2) (42 U.S.C.

1395l(t)(2)) is amended—

(1) by striking ‘‘and’’ at the end of subparagraph (E);

(2) by striking the period at the end of subparagraph (F)

and inserting ‘‘; and’’; and

(3) by inserting after subparagraph (F) the following new

subparagraph:

‘‘(G) the Secretary shall create additional groups of covered OPD services that classify separately those procedures

that utilize contrast agents from those that do not.’’.

(b) CONFORMING AMENDMENT.—Section 1861(t)(1) (42 U.S.C.

1395x(t)(1)) is amended by inserting ‘‘(including contrast agents)’’

after ‘‘only such drugs’’.

(c) EFFECTIVE DATE.—The amendments made by this section

apply to items and services furnished on or after July 1, 2001.

SEC. 431. QUALIFICATIONS FOR COMMUNITY MENTAL HEALTH CENTERS.

(a) MEDICARE PROGRAM.—Section 1861(ff)(3)(B) (42 U.S.C.

1395x(ff)(3)(B)) is amended by striking ‘‘entity’’ and all that follows

and inserting the following: ‘‘entity that—

‘‘(i)(I) provides the mental health services described in section 1913(c)(1) of the Public Health Service Act; or

‘‘(II) in the case of an entity operating in a State that by

law precludes the entity from providing itself the service described in subparagraph (E) of such section, provides for such

service by contract with an approved organization or entity (as

determined by the Secretary);

‘‘(ii) meets applicable licensing or certification requirements

for community mental health centers in the State in which it is

located; and

‘‘(iii) meets such additional conditions as the Secretary

shall specify to ensure (I) the health and safety of individuals

being furnished such services, (II) the effective and efficient furnishing of such services, and (III) the compliance of such entity

with the criteria described in section 1931(c)(1) of the Public

Health Service Act.’’.

(b) EFFECTIVE DATE.—The amendment made by subsection (a)

shall apply with respect to community mental health centers with

respect to services furnished on or after the first day of the third

month beginning after the date of the enactment of this Act.

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SEC. 432. PAYMENT OF PHYSICIAN AND NONPHYSICIAN SERVICES IN

CERTAIN INDIAN PROVIDERS.

(a) IN GENERAL.—Section 1880 (42 U.S.C. 1395qq) is

amended—

(1) by redesignating subsection (e), as added by section

3(b)(1) of the Alaska Native and American Indian Direct Reimbursement Act of 2000 (Public Law 106–417), as subsection (f);

and

(2) by inserting after subsection (d) the following new subsection:

‘‘(e)(1)(A) Notwithstanding section 1835(d), subject to subparagraph (B), the Secretary shall make payment under part B to a hospital or an ambulatory care clinic (whether provider-based or freestanding) that is operated by the Indian Health Service or by an Indian tribe or tribal organization (as defined for purposes of subsection (a)) for services described in paragraph (2) furnished in or

at the direction of the hospital or clinic under the same situations,

terms, and conditions as would apply if the services were furnished

in or at the direction of such a hospital or clinic that was not operated by such Service, tribe, or organization.

‘‘(B) Payment shall not be made for services under subparagraph (A) to the extent that payment is otherwise made for such

services under this title.

‘‘(2) The services described in this paragraph are the following:

‘‘(A) Services for which payment is made under section

1848.

‘‘(B) Services furnished by a practitioner described in section 1842(b)(18)(C) for which payment under part B is made

under a fee schedule.

‘‘(C) Services furnished by a physical therapist or occupational therapist as described in section 1861(p) for which payment under part B is made under a fee schedule.

‘‘(3) Subsection (c) shall not apply to payments made under this

subsection.’’.

(b) CONFORMING AMENDMENTS.—

(1) COVERAGE AMENDMENT.—Section 1862(a)(3) (42 U.S.C.

1395y(a)(3)) is amended—

(A) by striking the second comma after ‘‘1861(aa)(1)’’;

and

(B) by inserting ‘‘in the case of services for which payment may be made under section 1880(e),’’ after ‘‘as defined

in section 1861(aa)(3),’’.

(2) DIRECT PAYMENT AMENDMENT.—The first sentence of

section 1842(b)(6) (42 U.S.C. 1395u(b)(6)) is amended—

(A) by striking ‘‘and (F)’’ and inserting ‘‘(F)’’; and

(B) by inserting before the period the following: ‘‘, and

(G) in the case of services in a hospital or clinic to which

section 1880(e) applies, payment shall be made to such hospital or clinic’’.

(c) EFFECTIVE DATE.—The amendments made by this section

shall apply to services furnished on or after July 1, 2001.

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SEC. 433. GAO STUDY ON COVERAGE OF SURGICAL FIRST ASSISTING

SERVICES OF CERTIFIED REGISTERED NURSE FIRST ASSISTANTS.

(a) STUDY.—The Comptroller General of the United States shall

conduct a study on the effect on the medicare program under title

XVIII of the Social Security Act and on medicare beneficiaries of

coverage under the program of surgical first assisting services of

certified registered nurse first assistants. The Comptroller General

shall consider the following when conducting the study:

(1) Any impact on the quality of care furnished to medicare

beneficiaries by reason of such coverage.

(2) Appropriate education and training requirements for

certified registered nurse first assistants who furnish such first

assisting services.

(3) Appropriate rates of payment under the program to such

certified registered nurse first assistants for furnishing such

services, taking into account the costs of compensation, overhead, and supervision attributable to certified registered nurse

first assistants.

(b) REPORT.—Not later than 1 year after the date of the enactment of this Act, the Comptroller General shall submit to Congress

a report on the study conducted under subsection (a).

SEC. 434. MEDPAC STUDY AND REPORT ON MEDICARE REIMBURSEMENT FOR SERVICES PROVIDED BY CERTAIN PROVIDERS.

(a) STUDY.—The Medicare Payment Advisory Commission shall

conduct a study on the appropriateness of the current payment rates

under the medicare program under title XVIII of the Social Security

Act for services provided by a—

(1) certified nurse-midwife (as defined in subsection (gg)(2)

of section 1861 of such Act (42 U.S.C. 1395x));

(2) physician assistant (as defined in subsection (aa)(5)(A)

of such section);

(3) nurse practitioner (as defined in such subsection); and

(4) clinical nurse specialist (as defined in subsection

(aa)(5)(B) of such section).

The study shall separately examine the appropriateness of such payment rates for orthopedic physician assistants, taking into consideration the requirements for accreditation, training, and education.

(b) REPORT.—Not later than 18 months after the date of the enactment of this Act, the Commission shall submit to Congress a report on the study conducted under subsection (a), together with any

recommendations for legislation that the Commission determines to

be appropriate as a result of such study.

SEC. 435. MEDPAC STUDY AND REPORT ON MEDICARE COVERAGE OF

SERVICES PROVIDED BY CERTAIN NONPHYSICIAN PROVIDERS.

(a) STUDY.—

(1) IN GENERAL.—The Medicare Payment Advisory Commission shall conduct a study to determine the appropriateness

of providing coverage under the medicare program under title

XVIII of the Social Security Act for services provided by a—

(A) surgical technologist;

(B) marriage counselor;

(C) marriage and family therapist;

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(D) pastoral care counselor; and

(E) licensed professional counselor of mental health.

(2) COSTS TO PROGRAM.—The study shall consider the

short-term and long-term benefits, and costs to the medicare

program, of providing the coverage described in paragraph (1).

(b) REPORT.—Not later than 18 months after the date of the enactment of this Act, the Commission shall submit to Congress a report on the study conducted under subsection (a), together with any

recommendations for legislation that the Commission determines to

be appropriate as a result of such study.

SEC. 436. GAO STUDY AND REPORT ON THE COSTS OF EMERGENCY

AND MEDICAL TRANSPORTATION SERVICES.

(a) STUDY.—The Comptroller General of the United States shall

conduct a study on the costs of providing emergency and medical

transportation services across the range of acuity levels of conditions

for which such transportation services are provided.

(b) REPORT.—Not later than 18 months after the date of the enactment of this Act, the Comptroller General shall submit to Congress a report on the study conducted under subsection (a), together

with recommendations for any changes in methodology or payment

level necessary to fairly compensate suppliers of emergency and

medical transportation services and to ensure the access of beneficiaries under the medicare program under title XVIII of the Social

Security Act.

SEC. 437. GAO STUDIES AND REPORTS ON MEDICARE PAYMENTS.

(a) GAO STUDY ON HCFA POST-PAYMENT AUDIT PROCESS.—

(1) STUDY.—The Comptroller General of the United States

shall conduct a study on the post-payment audit process under

the medicare program under title XVIII of the Social Security

Act as such process applies to physicians, including the proper

level of resources that the Health Care Financing Administration should devote to educating physicians regarding—

(A) coding and billing;

(B) documentation requirements; and

(C) the calculation of overpayments.

(2) REPORT.—Not later than 18 months after the date of the

enactment of this Act, the Comptroller General shall submit to

Congress a report on the study conducted under paragraph (1)

together with specific recommendations for changes or improvements in the post-payment audit process described in such

paragraph.

(b) GAO STUDY ON ADMINISTRATION AND OVERSIGHT.—

(1) STUDY.—The Comptroller General of the United States

shall conduct a study on the aggregate effects of regulatory,

audit, oversight, and paperwork burdens on physicians and

other health care providers participating in the medicare program under title XVIII of the Social Security Act.

(2) REPORT.—Not later than 18 months after the date of the

enactment of this Act, the Comptroller General shall submit to

Congress a report on the study conducted under paragraph (1)

together with recommendations regarding any area in which—

817

(A) a reduction in paperwork, an ease of administration, or an appropriate change in oversight and review may

be accomplished; or

(B) additional payments or education are needed to assist physicians and other health care providers in understanding and complying with any legal or regulatory requirements.

SEC. 438. MEDPAC STUDY ON ACCESS TO OUTPATIENT PAIN MANAGEMENT SERVICES.

(a) STUDY.—The Medicare Payment Advisory Commission shall

conduct a study on the barriers to coverage and payment for outpatient interventional pain medicine procedures under the medicare

program under title XVIII of the Social Security Act. Such study

shall examine—

(1) the specific barriers imposed under the medicare program on the provision of pain management procedures in hospital outpatient departments, ambulatory surgery centers, and

physicians’ offices; and

(2) the consistency of medicare payment policies for pain

management procedures in those different settings.

(b) REPORT.—Not later than 1 year after the date of the enactment of this Act, the Commission shall submit to Congress a report

on the study.

TITLE V—PROVISIONS RELATING TO PARTS A AND B

Subtitle A—Home Health Services

SEC. 501. 1-YEAR ADDITIONAL DELAY IN APPLICATION OF 15 PERCENT

REDUCTION ON PAYMENT LIMITS FOR HOME HEALTH

SERVICES.

(a) IN GENERAL.—Section 1895(b)(3)(A)(i) (42 U.S.C.

1395fff(b)(3)(A)(i)) is amended—

(1) by redesignating subclause (II) as subclause (III);

(2) in subclause (III), as redesignated, by striking ‘‘described in subclause (I)’’ and inserting ‘‘described in subclause

(II)’’; and

(3) by inserting after subclause (I) the following new subclause:

‘‘(II) For the 12-month period beginning after

the period described in subclause (I), such amount

(or amounts) shall be equal to the amount (or

amounts) determined under subclause (I), updated

under subparagraph (B).’’.

(b) CHANGE IN REPORT.—Section 302(c) of BBRA (113 Stat.

1501A–360) is amended—

(1) by striking ‘‘Not later than’’ and all that follows through

‘‘(42 U.S.C. 1395fff)’’ and inserting ‘‘Not later than April 1,

2002’’; and

(2) by striking ‘‘Secretary’’ and inserting ‘‘Comptroller General of the United States’’.

(c) CASE MIX ADJUSTMENT CORRECTIONS.—

(1) IN GENERAL.—Section 1895(b)(3)(B) (42 U.S.C.

1395fff(b)(3)(B)) is amended by adding at the end the following

new clause:

818

‘‘(iv) ADJUSTMENT FOR CASE MIX CHANGES.—Insofar as the Secretary determines that the adjustments

under paragraph (4)(A)(i) for a previous fiscal year (or

estimates that such adjustments for a future fiscal

year) did (or are likely to) result in a change in aggregate payments under this subsection during the fiscal

year that are a result of changes in the coding or classification of different units of services that do not reflect real changes in case mix, the Secretary may adjust

the standard prospective payment amount (or amounts)

under paragraph (3) for subsequent fiscal years so as

to eliminate the effect of such coding or classification

changes.’’.

(2) EFFECTIVE DATE.—The amendment made by paragraph

(1) shall apply to episodes concluding on or after October 1,

2001.

SEC. 502. RESTORATION OF FULL HOME HEALTH MARKET BASKET UPDATE FOR HOME HEALTH SERVICES FOR FISCAL YEAR

2001.

(a) IN GENERAL.—Section 1861(v)(1)(L)(x) (42 U.S.C.

1395x(v)(1)(L)(x)) is amended—

(1) by striking ‘‘2001,’’; and

(2) by adding at the end the following: ‘‘With respect to cost

reporting periods beginning during fiscal year 2001, the update

to any limit under this subparagraph shall be the home health

market basket index.’’.

(b) SPECIAL RULE FOR PAYMENT FOR FISCAL YEAR 2001 BASED

ON ADJUSTED PROSPECTIVE PAYMENT AMOUNTS.— (1) IN GENERAL.—Notwithstanding the amendments made

by subsection (a), for purposes of making payments under section 1895(b) of the Social Security Act (42 U.S.C. 1395fff(b)) for

home health services furnished during fiscal year 2001, the Secretary of Health and Human Services shall—

(A) with respect to episodes and visits ending on or

after October 1, 2000, and before April 1, 2001, use the

final standardized and budget neutral prospective payment

amounts for 60-day episodes and standardized average per

visit amounts for fiscal year 2001 as published by the Secretary in the Federal Register on July 3, 2000 (65 Fed. Reg.

41128–41214); and

(B) with respect to episodes and visits ending on or

after April 1, 2001, and before October 1, 2001, use such

amounts increased by 2.2 percent.

(2) NO EFFECT ON OTHER PAYMENTS OR DETERMINATIONS.—

The Secretary shall not take the provisions of paragraph (1)

into account for purposes of payments, determinations, or budget neutrality adjustments under section 1895 of the Social Security Act.

SEC. 503. TEMPORARY TWO-MONTH PERIODIC INTERIM PAYMENT.

(a) IN GENERAL.—Notwithstanding the amendments made by

section 4603(b) of BBA (42 U.S.C. 1395fff note), in the case of a

home health agency that was receiving periodic interim payments

under section 1815(e)(2) of the Social Security Act (42 U.S.C.

1395g(e)(2)) as of September 30, 2000, and that is not described in

819

subsection (b), the Secretary of Health and Human Services shall,

as soon as practicable, make a single periodic interim payment to

such agency in an amount equal to four times the last full fortnightly periodic interim payment made to such agency under the

payment system in effect prior to the implementation of the prospective payment system under section 1895(b) of such Act (42 U.S.C.

1395fff(b)). Such amount of such periodic interim payment shall be

included in the tentative settlement of the last cost report for the

home health agency under the payment system in effect prior to the

implementation of such prospective payment system, regardless of

the ending date of such cost report.

(b) EXCEPTIONS.—The Secretary shall not make an additional

periodic interim payment under subsection (a) in the case of a home

health agency (determined as of the day that such payment would

otherwise be made) that—

(1) notifies the Secretary that such agency does not want to

receive such payment;

(2) is not receiving payments pursuant to section 405.371 of

title 42, Code of Federal Regulations;

(3) is excluded from the medicare program under title XI

of the Social Security Act;

(4) no longer has a provider agreement under section 1866

of such Act (42 U.S.C. 1395cc);

(5) is no longer in business; or

(6) is subject to a court order providing for the withholding

of medicare payments under title XVIII of such Act.

SEC. 504. USE OF TELEHEALTH IN DELIVERY OF HOME HEALTH SERVICES.

Section 1895 (42 U.S.C. 1395fff) is amended by adding at the

end the following new subsection:

‘‘(e) CONSTRUCTION RELATED TO HOME HEALTH SERVICES.— ‘‘(1) TELECOMMUNICATIONS.—Nothing in this section shall

be construed as preventing a home health agency furnishing a

home health unit of service for which payment is made under

the prospective payment system established by this section for

such units of service from furnishing services via a telecommunication system if such services—

‘‘(A) do not substitute for in-person home health services ordered as part of a plan of care certified by a physician pursuant to section 1814(a)(2)(C) or 1835(a)(2)(A); and

‘‘(B) are not considered a home health visit for purposes of eligibility or payment under this title.

‘‘(2) PHYSICIAN CERTIFICATION.—Nothing in this section

shall be construed as waiving the requirement for a physician

certification under section 1814(a)(2)(C) or 1835(a)(2)(A) of such

Act (42 U.S.C. 1395f(a)(2)(C), 1395n(a)(2)(A)) for the payment

for home health services, whether or not furnished via a telecommunications system.’’.

SEC. 505. STUDY ON COSTS TO HOME HEALTH AGENCIES OF PURCHASING NONROUTINE MEDICAL SUPPLIES.

(a) STUDY.—The Comptroller General of the United States shall

conduct a study on variations in prices paid by home health agencies furnishing home health services under the medicare program

under title XVIII of the Social Security Act in purchasing nonrouVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00823 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.007 pfrm03 PsN: HR1033
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tine medical supplies, including ostomy supplies, and volumes of

such supplies used, shall determine the effect (if any) of variations

on prices and volumes in the provision of such services.

(b) REPORT.—Not later than August 15, 2001, the Comptroller

General shall submit to Congress a report on the study conducted

under subsection (a), and shall include in the report recommendations respecting whether payment for nonroutine medical supplies

furnished in connection with home health services should be made

separately from the prospective payment system for such services.

SEC. 506. TREATMENT OF BRANCH OFFICES; GAO STUDY ON SUPERVISION OF HOME HEALTH CARE PROVIDED IN ISOLATED

RURAL AREAS.

(a) TREATMENT OF BRANCH OFFICES.—

(1) IN GENERAL.—Notwithstanding any other provision of

law, in determining for purposes of title XVIII of the Social Security Act whether an office of a home health agency constitutes

a branch office or a separate home health agency, neither the

time nor distance between a parent office of the home health

agency and a branch office shall be the sole determinant of a

home health agency’s branch office status.

(2) CONSIDERATION OF FORMS OF TECHNOLOGY IN DEFINITION OF SUPERVISION.—The Secretary of Health and Human

Services may include forms of technology in determining what

constitutes ‘‘supervision’’ for purposes of determining a home

heath agency’s branch office status under paragraph (1).

(b) GAO STUDY.—

(1) STUDY.—The Comptroller General of the United States

shall conduct a study of the provision of adequate supervision

to maintain quality of home health services delivered under the

medicare program under title XVIII of the Social Security Act

in isolated rural areas. The study shall evaluate the methods

that home health agency branches and subunits use to maintain adequate supervision in the delivery of services to clients

residing in those areas, how these methods of supervision compare to requirements that subunits independently meet medicare conditions of participation, and the resources utilized by

subunits to meet such conditions.

(2) REPORT.—Not later than January 1, 2002, the Comptroller General shall submit to Congress a report on the study

conducted under paragraph (1). The report shall include recommendations on whether exceptions are needed for subunits

and branches of home health agencies under the medicare program to maintain access to the home health benefit or whether

alternative policies should be developed to assure adequate supervision and access and recommendations on whether a national standard for supervision is appropriate.

SEC. 507. CLARIFICATION OF THE HOMEBOUND DEFINITION UNDER

THE MEDICARE HOME HEALTH BENEFIT.

(a) CLARIFICATION.—

(1) IN GENERAL.—Sections 1814(a) and 1835(a) (42 U.S.C.

1395f(a) and 1395n(a)) are each amended—

(A) in the last sentence, by striking ‘‘, and that absences

of the individual from home are infrequent or of relatively

821

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 daycare program that is licensed or certified by a State, or accredited, to furnish adult day-care services in the State

shall not disqualify an individual from being considered to

be ‘confined to his home’. Any other absence of an individual from the home shall not so disqualify an individual

if the absence is of infrequent or of relatively short duration. For purposes of the preceding sentence, any absence

for the purpose of attending a religious service shall be

deemed to be an absence of infrequent or short duration.’’.

(2) EFFECTIVE DATE.—The amendments made by paragraph (1) shall apply to home health services furnished on or

after the date of the enactment of this Act.

(b) STUDY.— (1) IN GENERAL.—The Comptroller General of the United

States shall conduct an evaluation of the effect of the amendment on the cost of and access to home health services under

the medicare program under title XVIII of the Social Security

Act.

(2) REPORT.—Not later than 1 year after the date of the enactment of this Act, the Comptroller General shall submit to

Congress a report on the study conducted under paragraph (1).

SEC. 508. TEMPORARY INCREASE FOR HOME HEALTH SERVICES FURNISHED IN A RURAL AREA.

(a) 24-MONTH INCREASE BEGINNING APRIL 1, 2001.—In the case

of home health services furnished in a rural area (as defined in section 1886(d)(2)(D) of the Social Security Act (42 U.S.C.

1395ww(d)(2)(D))) on or after April 1, 2001, and before April 1,

2003, the Secretary of Health and Human Services shall increase

the payment amount otherwise made under section 1895 of such Act

(42 U.S.C. 1395fff) for such services by 10 percent.

(b) WAIVING BUDGET NEUTRALITY.—The Secretary shall not reduce the standard prospective payment amount (or amounts) under

section 1895 of the Social Security Act (42 U.S.C. 1395fff) applicable to home health services furnished during a period to offset the

increase in payments resulting from the application of subsection

(a).

Subtitle B—Direct Graduate Medical Education

SEC. 511. INCREASE IN FLOOR FOR DIRECT GRADUATE MEDICAL EDUCATION PAYMENTS.

Section 1886(h)(2)(D)(iii) (42 U.S.C. 1395ww(h)(2)(D)(iii)) is

amended—

(1) in the heading, by striking ‘‘IN FISCAL YEAR 2001 AT 70

PERCENT OF’’ and inserting ‘‘FOR’’; and

(2) by inserting after ‘‘70 percent’’ the following: ‘‘, and for

the cost reporting period beginning during fiscal year 2002

shall not be less than 85 percent,’’.

822

SEC. 512. CHANGE IN DISTRIBUTION FORMULA FOR

MEDICARE+CHOICE-RELATED NURSING AND ALLIED

HEALTH EDUCATION COSTS.

(a) IN GENERAL.—Section 1886(l)(2)(C) (42 U.S.C.

1395ww(l)(2)(C)) is amended by striking all that follows ‘‘multiplied

by’’ and inserting the following: ‘‘the ratio of—

‘‘(i) the product of (I) the Secretary’s estimate of the

ratio of the amount of payments made under section

1861(v) to the hospital for nursing and allied health

education activities for the hospital’s cost reporting period ending in the second preceding fiscal year, to the

hospital’s total inpatient days for such period, and (II)

the total number of inpatient days (as established by

the Secretary) for such period which are attributable to

services furnished to individuals who are enrolled

under a risk sharing contract with an eligible organization under section 1876 and who are entitled to benefits under part A or who are enrolled with a

Medicare+Choice organization under part C; to

‘‘(ii) the sum of the products determined under

clause (i) for such cost reporting periods.’’.

(b) EFFECTIVE DATE.—The amendment made by subsection (a)

shall apply to portions of cost reporting periods occurring on or

after January 1, 2001.

Subtitle C—Changes in Medicare Coverage and Appeals

Process

SEC. 521. REVISIONS TO MEDICARE APPEALS PROCESS.

(a) CONDUCT OF RECONSIDERATIONS OF DETERMINATIONS BY

INDEPENDENT CONTRACTORS.—Section 1869 (42 U.S.C. 1395ff) is

amended to read as follows:

‘‘DETERMINATIONS; APPEALS

‘‘SEC. 1869. (a) INITIAL DETERMINATIONS.—

‘‘(1) PROMULGATIONS OF REGULATIONS.—The Secretary

shall promulgate regulations and make initial determinations

with respect to benefits under part A or part B in accordance

with those regulations for the following:

‘‘(A) The initial determination of whether an individual

is entitled to benefits under such parts.

‘‘(B) The initial determination of the amount of benefits

available to the individual under such parts.

‘‘(C) Any other initial determination with respect to a

claim for benefits under such parts, including an initial determination by the Secretary that payment may not be

made, or may no longer be made, for an item or service

under such parts, an initial determination made by a utilization and quality control peer review organization under

section 1154(a)(2), and an initial determination made by

an entity pursuant to a contract (other than a contract

under section 1852) with the Secretary to administer provisions of this title or title XI.

‘‘(2) DEADLINES FOR MAKING INITIAL DETERMINATIONS.—

823

‘‘(A) IN GENERAL.—Subject to subparagraph (B), in promulgating regulations under paragraph (1), initial determinations shall be concluded by not later than the 45-day

period beginning on the date the fiscal intermediary or the

carrier, as the case may be, receives a claim for benefits

from an individual as described in paragraph (1). Notice of

such determination shall be mailed to the individual filing

the claim before the conclusion of such 45-day period.

‘‘(B) CLEAN CLAIMS.—Subparagraph (A) shall not

apply with respect to any claim that is subject to the requirements of section 1816(c)(2) or 1842(c)(2).

‘‘(3) REDETERMINATIONS.— ‘‘(A) IN GENERAL.—In promulgating regulations under

paragraph (1) with respect to initial determinations, such

regulations shall provide for a fiscal intermediary or a carrier to make a redetermination with respect to a claim for

benefits that is denied in whole or in part.

‘‘(B) LIMITATIONS.— ‘‘(i) APPEAL RIGHTS.—No initial determination may

be reconsidered or appealed under subsection (b) unless

the fiscal intermediary or carrier has made a redetermination of that initial determination under this paragraph.

‘‘(ii) DECISIONMAKER.—No redetermination may be

made by any individual involved in the initial determination.

‘‘(C) DEADLINES.— ‘‘(i) FILING FOR REDETERMINATION.—A redetermination under subparagraph (A) shall be available

only if notice is filed with the Secretary to request the

redetermination by not later than the end of the 120-

day period beginning on the date the individual receives notice of the initial determination under paragraph (2).

‘‘(ii) CONCLUDING REDETERMINATIONS.—Redeterminations shall be concluded by not later than the 30-

day period beginning on the date the fiscal intermediary or the carrier, as the case may be, receives a

request for a redetermination. Notice of such determination shall be mailed to the individual filing the

claim before the conclusion of such 30-day period.

‘‘(D) CONSTRUCTION.—For purposes of the succeeding

provisions of this section a redetermination under this

paragraph shall be considered to be part of the initial determination.

‘‘(b) APPEAL RIGHTS.—

‘‘(1) IN GENERAL.—

‘‘(A) RECONSIDERATION OF INITIAL DETERMINATION.—

Subject to subparagraph (D), any individual dissatisfied

with any initial determination under subsection (a)(1) shall

be entitled to reconsideration of the determination, and,

subject to subparagraphs (D) and (E), a hearing thereon by

the Secretary to the same extent as is provided in section

205(b) and to judicial review of the Secretary’s final deciVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00827 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.007 pfrm03 PsN: HR1033
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sion after such hearing as is provided in section 205(g). For

purposes of the preceding sentence, any reference to the

‘Commissioner of Social Security’ or the ‘Social Security

Administration’ in subsection (g) or (l) of section 205 shall

be considered a reference to the ‘Secretary’ or the ‘Department of Health and Human Services’, respectively.

‘‘(B) REPRESENTATION BY PROVIDER OR SUPPLIER.— ‘‘(i) IN GENERAL.—Sections 206(a), 1102, and 1871

shall not be construed as authorizing the Secretary to

prohibit an individual from being represented under

this section by a person that furnishes or supplies the

individual, directly or indirectly, with services or

items, solely on the basis that the person furnishes or

supplies the individual with such a service or item.

‘‘(ii) MANDATORY WAIVER OF RIGHT TO PAYMENT

FROM BENEFICIARY.—Any person that furnishes services

or items to an individual may not represent an individual under this section with respect to the issue described in section 1879(a)(2) unless the person has

waived any rights for payment from the beneficiary

with respect to the services or items involved in the appeal.

‘‘(iii) PROHIBITION ON PAYMENT FOR REPRESENTA- TION.—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

825

for the filing of a request for a hearing by the Secretary

in accordance with provisions in sections 205 and 206.

‘‘(E) AMOUNTS IN CONTROVERSY.—

‘‘(i) IN GENERAL.—A hearing (by the Secretary)

shall not be available to an individual under this section if the amount in controversy is less than $100, and

judicial review shall not be available to the individual

if the amount in controversy is less than $1,000.

‘‘(ii) AGGREGATION OF CLAIMS.—In determining the

amount in controversy, the Secretary, under regulations, shall allow two or more appeals to be aggregated

if the appeals involve—

‘‘(I) the delivery of similar or related services

to the same individual by one or more providers of

services or suppliers, or

‘‘(II) common issues of law and fact arising

from services furnished to two or more individuals

by one or more providers of services or suppliers.

‘‘(F) EXPEDITED PROCEEDINGS.—

‘‘(i) EXPEDITED DETERMINATION.—In the case of an

individual who has received notice from a provider of

services that such provider plans—

‘‘(I) to terminate services provided to an individual and a physician certifies that failure to continue the provision of such services is likely to

place the individual’s health at significant risk, or

‘‘(II) to discharge the individual from the provider of services,

the individual may request, in writing or orally, an expedited determination or an expedited reconsideration

of an initial determination made under subsection

(a)(1), as the case may be, and the Secretary shall provide such expedited determination or expedited reconsideration.

‘‘(ii) EXPEDITED HEARING.—In a hearing by the

Secretary under this section, in which the moving party

alleges that no material issues of fact are in dispute,

the Secretary shall make an expedited determination as

to whether any such facts are in dispute and, if not,

shall render a decision expeditiously.

‘‘(G) REOPENING AND REVISION OF DETERMINATIONS.—

The Secretary may reopen or revise any initial determination or reconsidered determination described in this subsection under guidelines established by the Secretary in

regulations.

‘‘(c) CONDUCT OF RECONSIDERATIONS BY INDEPENDENT CONTRACTORS.—

‘‘(1) IN GENERAL.—The Secretary shall enter into contracts

with qualified independent contractors to conduct reconsiderations of initial determinations made under subparagraphs (B)

and (C) of subsection (a)(1). Contracts shall be for an initial

term of three years and shall be renewable on a triennial basis

thereafter.

826

‘‘(2) QUALIFIED INDEPENDENT CONTRACTOR.—For purposes

of this subsection, the term ‘qualified independent contractor’

means an entity or organization that is independent of any organization under contract with the Secretary that makes initial

determinations under subsection (a)(1), and that meets the requirements established by the Secretary consistent with paragraph (3).

‘‘(3) REQUIREMENTS.—Any qualified independent contractor

entering into a contract with the Secretary under this subsection shall meet all of the following requirements:

‘‘(A) IN GENERAL.—The qualified independent contractor shall perform such duties and functions and assume such responsibilities as may be required by the Secretary to carry out the provisions of this subsection, and

shall have sufficient training and expertise in medical

science and legal matters to make reconsiderations under

this subsection.

‘‘(B) RECONSIDERATIONS.— ‘‘(i) IN GENERAL.—The qualified independent contractor shall review initial determinations. Where an

initial determination is made with respect to whether

an item or service is reasonable and necessary for the

diagnosis or treatment of illness or injury (under section 1862(a)(1)(A)), such review shall include consideration of the facts and circumstances of the initial determination by a panel of physicians or other appropriate

health care professionals and any decisions with respect to the reconsideration shall be based on applicable information, including clinical experience and medical, technical, and scientific evidence.

‘‘(ii) EFFECT OF NATIONAL AND LOCAL COVERAGE

DETERMINATIONS.— ‘‘(I) NATIONAL COVERAGE DETERMINATIONS.—If

the Secretary has made a national coverage determination pursuant to the requirements established

under the third sentence of section 1862(a), such

determination shall be binding on the qualified

independent contractor in making a decision with

respect to a reconsideration under this section.

‘‘(II) LOCAL COVERAGE DETERMINATIONS.—If

the Secretary has made a local coverage determination, such determination shall not be binding

on the qualified independent contractor in making

a decision with respect to a reconsideration under

this section. Notwithstanding the previous sentence, the qualified independent contractor shall

consider the local coverage determination in making such decision.

‘‘(III) ABSENCE OF NATIONAL OR LOCAL COVERAGE DETERMINATION.—In the absence of such a

national coverage determination or local coverage

determination, the qualified independent contractor shall make a decision with respect to the

reconsideration based on applicable information,

827

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 DEAD- LINE.—In the case of a failure by the qualified independent contractor to mail the notice of the decision by

the end of the period described in clause (i) or to provide notice by the end of the period described in clause

(iii), as the case may be, the party requesting the reconsideration or appeal may request a hearing before the

Secretary, notwithstanding any requirements for a reconsidered determination for purposes of the party’s

right to such hearing.

‘‘(iii) EXPEDITED RECONSIDERATIONS.—The qualified independent contractor shall perform an expedited

reconsideration under subsection (b)(1)(F) as follows:

‘‘(I) DEADLINE FOR DECISION.—Notwithstanding section 216(j) and subject to clause (iv),

not later than the end of the 72-hour period beginning on the date the qualified independent contractor has received a request for such reconsideration and has received such medical or other

records needed for such reconsideration, the qualified independent contractor shall provide notice (by

telephone and in writing) to the individual and the

provider of services and attending physician of the

individual of the results of the reconsideration.

Such reconsideration shall be conducted regardless

of whether the provider of services or supplier will

charge the individual for continued services or

whether the individual will be liable for payment

for such continued services.

‘‘(II) CONSULTATION WITH BENEFICIARY.—In

such reconsideration, the qualified independent

contractor shall solicit the views of the individual

involved.

‘‘(III) SPECIAL RULE FOR HOSPITAL DISCHARGES.—A reconsideration of a discharge from a

hospital shall be conducted under this clause in

accordance with the provisions of paragraphs (2),

(3), and (4) of section 1154(e) as in effect on the

date that precedes the date of the enactment of this

subparagraph.

‘‘(iv) EXTENSION.—An individual requesting a reconsideration under this subparagraph may be granted

such additional time as the individual specifies (not to

exceed 14 days) for the qualified independent conVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00831 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.007 pfrm03 PsN: HR1033
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tractor to conclude the reconsideration. The individual

may request such additional time orally or in writing.

‘‘(D) LIMITATION ON INDIVIDUAL REVIEWING DETER- MINATIONS.—

‘‘(i) PHYSICIANS AND HEALTH CARE PROFES- SIONAL.—No physician or health care professional

under the employ of a qualified independent contractor

may review—

‘‘(I) determinations regarding health care services furnished to a patient if the physician or

health care professional was directly responsible

for furnishing such services; or

‘‘(II) determinations regarding health care

services provided in or by an institution, organization, or agency, if the physician or any member of

the family of the physician or health care professional has, directly or indirectly, a significant financial interest in such institution, organization,

or agency.

‘‘(ii) FAMILY DESCRIBED.—For purposes of this

paragraph, the family of a physician or health care

professional includes the spouse (other than a spouse

who is legally separated from the physician or health

care professional under a decree of divorce or separate

maintenance), children (including stepchildren and legally adopted children), grandchildren, parents, and

grandparents of the physician or health care professional.

‘‘(E) EXPLANATION OF DECISION.—Any decision with respect to a reconsideration of a qualified independent contractor shall be in writing, and shall include a detailed explanation of the decision as well as a discussion of the pertinent facts and applicable regulations applied in making

such decision, and in the case of a determination of whether an item or service is reasonable and necessary for the diagnosis or treatment of illness or injury (under section

1862(a)(1)(A)) an explanation of the medical and scientific

rationale for the decision.

‘‘(F) NOTICE REQUIREMENTS.—Whenever a qualified

independent contractor makes a decision with respect to a

reconsideration under this subsection, the qualified independent contractor shall promptly notify the entity responsible for the payment of claims under part A or part B of

such decision.

‘‘(G) DISSEMINATION OF DECISIONS ON RECONSIDERATIONS.—Each qualified independent contractor shall make

available all decisions with respect to reconsiderations of

such qualified independent contractors to fiscal intermediaries (under section 1816), carriers (under section

1842), peer review organizations (under part B of title XI),

Medicare+Choice organizations offering Medicare+Choice

plans under part C, other entities under contract with the

Secretary to make initial determinations under part A or

part B or title XI, and to the public. The Secretary shall esVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00832 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.007 pfrm03 PsN: HR1033
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tablish a methodology under which qualified independent

contractors shall carry out this subparagraph.

‘‘(H) ENSURING CONSISTENCY IN DECISIONS.—Each

qualified independent contractor shall monitor its decisions

with respect to reconsiderations to ensure the consistency of

such decisions with respect to requests for reconsideration

of similar or related matters.

‘‘(I) DATA COLLECTION.— ‘‘(i) IN GENERAL.—Consistent with the requirements of clause (ii), a qualified independent contractor

shall collect such information relevant to its functions,

and keep and maintain such records in such form and

manner as the Secretary may require to carry out the

purposes of this section and shall permit access to and

use of any such information and records as the Secretary may require for such purposes.

‘‘(ii) TYPE OF DATA COLLECTED.—Each qualified

independent contractor shall keep accurate records of

each decision made, consistent with standards established by the Secretary for such purpose. Such records

shall be maintained in an electronic database in a

manner that provides for identification of the following:

‘‘(I) Specific claims that give rise to appeals.

‘‘(II) Situations suggesting the need for increased education for providers of services, physicians, or suppliers.

‘‘(III) Situations suggesting the need for

changes in national or local coverage policy.

‘‘(IV) Situations suggesting the need for

changes in local medical review policies.

‘‘(iii) ANNUAL REPORTING.—Each qualified independent contractor shall submit annually to the Secretary (or otherwise as the Secretary may request)

records maintained under this paragraph for the previous year.

‘‘(J) HEARINGS BY THE SECRETARY.—The qualified

independent contractor shall (i) prepare such information

as is required for an appeal of a decision of the contractor

with respect to a reconsideration to the Secretary for a

hearing, including as necessary, explanations of issues involved in the decision and relevant policies, and (ii) participate in such hearings as required by the Secretary.

‘‘(4) NUMBER OF QUALIFIED INDEPENDENT CONTRACTORS.—

The Secretary shall enter into contracts with not fewer than 12

qualified independent contractors under this subsection.

‘‘(5) LIMITATION ON QUALIFIED INDEPENDENT CONTRACTOR

LIABILITY.—No qualified independent contractor having a contract with the Secretary under this subsection and no person

who is employed by, or who has a fiduciary relationship with,

any such qualified independent contractor or who furnishes

professional services to such qualified independent contractor,

shall be held by reason of the performance of any duty, function, or activity required or authorized pursuant to this subVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00833 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.007 pfrm03 PsN: HR1033
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section 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 HEAR- ING.—The 90-day period under subparagraph (A) shall not

apply in the case of a motion or stipulation by the party requesting the hearing to waive such period.

‘‘(2) DEPARTMENTAL APPEALS BOARD REVIEW.— ‘‘(A) IN GENERAL.—The Departmental Appeals Board of

the Department of Health and Human Services shall conduct and conclude a review of the decision on a hearing described in paragraph (1) and make a decision or remand

the case to the administrative law judge for reconsideration

by not later than the end of the 90-day period beginning on

the date a request for review has been timely filed.

‘‘(B) DAB HEARING PROCEDURE.—In reviewing a decision on a hearing under this paragraph, the Departmental

Appeals Board shall review the case de novo.

‘‘(3) CONSEQUENCES OF FAILURE TO MEET DEADLINES.— ‘‘(A) HEARING BY ADMINISTRATIVE LAW JUDGE.—In the

case of a failure by an administrative law judge to render

a decision by the end of the period described in paragraph

(1), the party requesting the hearing may request a review

by the Departmental Appeals Board of the Department of

Health and Human Services, notwithstanding any requirements for a hearing for purposes of the party’s right to such

a review.

‘‘(B) DEPARTMENTAL APPEALS BOARD REVIEW.—In the

case of a failure by the Departmental Appeals Board to

render a decision by the end of the period described in

paragraph (2), the party requesting the hearing may seek

judicial review, notwithstanding any requirements for a

hearing for purposes of the party’s right to such judicial review.

‘‘(e) ADMINISTRATIVE PROVISIONS.—

‘‘(1) LIMITATION ON REVIEW OF CERTAIN REGULATIONS.—A

regulation or instruction that relates to a method for determining the amount of payment under part B and that was initially issued before January 1, 1981, shall not be subject to judicial review.

‘‘(2) OUTREACH.—The Secretary shall perform such outreach activities as are necessary to inform individuals entitled

to benefits under this title and providers of services and supVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00834 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.007 pfrm03 PsN: HR1033
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pliers with respect to their rights of, and the process for, appeals made under this section. The Secretary shall use the tollfree telephone number maintained by the Secretary under section 1804(b) to provide information regarding appeal rights and

respond to inquiries regarding the status of appeals.

‘‘(3) CONTINUING EDUCATION REQUIREMENT FOR QUALIFIED

INDEPENDENT CONTRACTORS AND ADMINISTRATIVE LAW

JUDGES.—The Secretary shall provide to each qualified independent contractor, and, in consultation with the Commissioner

of Social Security, to administrative law judges that decide appeals of reconsiderations of initial determinations or other decisions or determinations under this section, such continuing education with respect to coverage of items and services under this

title or policies of the Secretary with respect to part B of title

XI as is necessary for such qualified independent contractors

and administrative law judges to make informed decisions with

respect to appeals.

‘‘(4) REPORTS.—

‘‘(A) ANNUAL REPORT TO CONGRESS.—The Secretary

shall submit to Congress an annual report describing the

number of appeals for the previous year, identifying issues

that require administrative or legislative actions, and including any recommendations of the Secretary with respect

to such actions. The Secretary shall include in such report

an analysis of determinations by qualified independent contractors with respect to inconsistent decisions and an analysis of the causes of any such inconsistencies.

‘‘(B) SURVEY.—Not less frequently than every 5 years,

the Secretary shall conduct a survey of a valid sample of

individuals entitled to benefits under this title who have

filed appeals of determinations under this section, providers of services, and suppliers to determine the satisfaction of such individuals or entities with the process for appeals of determinations provided for under this section and

education and training provided by the Secretary with respect to that process. The Secretary shall submit to Congress a report describing the results of the survey, and shall

include any recommendations for administrative or legislative actions that the Secretary determines appropriate.’’.

(b) APPLICABILITY OF REQUIREMENTS AND LIMITATIONS ON LIABILITY OF QUALIFIED INDEPENDENT CONTRACTORS TO

MEDICARE+CHOICE INDEPENDENT APPEALS CONTRACTORS.—Section

1852(g)(4) (42 U.S.C. 1395w–22(g)(4)) is amended by adding at the

end the following: ‘‘The provisions of section 1869(c)(5) shall apply

to independent outside entities under contract with the Secretary

under this paragraph.’’.

(c) CONFORMING AMENDMENT.—Section 1154(e) (42 U.S.C.

1320c–3(e)) is amended by striking paragraphs (2), (3), and (4).

(d) EFFECTIVE DATE.—The amendments made by this section

shall apply with respect to initial determinations made on or after

October 1, 2002.

832

SEC. 522. REVISIONS TO MEDICARE COVERAGE PROCESS.

(a) REVIEW OF DETERMINATIONS.—Section 1869 (42 U.S.C.

1395ff), as amended by section 521, is further amended by adding

at the end the following new subsection:

‘‘(f) REVIEW OF COVERAGE DETERMINATIONS.—

‘‘(1) NATIONAL COVERAGE DETERMINATIONS.—

‘‘(A) IN GENERAL.—Review of any national coverage determination shall be subject to the following limitations:

‘‘(i) Such a determination shall not be reviewed by

any administrative law judge.

‘‘(ii) Such a determination shall not be held unlawful or set aside on the ground that a requirement of

section 553 of title 5, United States Code, or section

1871(b) of this title, relating to publication in the Federal Register or opportunity for public comment, was

not satisfied.

‘‘(iii) Upon the filing of a complaint by an aggrieved party, such a determination shall be reviewed

by the Departmental Appeals Board of the Department

of Health and Human Services. In conducting such a

review, the Departmental Appeals Board—

‘‘(I) shall review the record and shall permit

discovery and the taking of evidence to evaluate

the reasonableness of the determination, if the

Board determines that the record is incomplete or

lacks adequate information to support the validity

of the determination;

‘‘(II) may, as appropriate, consult with appropriate scientific and clinical experts; and

‘‘(III) shall defer only to the reasonable findings of fact, reasonable interpretations of law, and

reasonable applications of fact to law by the Secretary.

‘‘(iv) The Secretary shall implement a decision of

the Departmental Appeals Board within 30 days of receipt of such decision.

‘‘(v) A decision of the Departmental Appeals Board

constitutes a final agency action and is subject to judicial review.

‘‘(B) DEFINITION OF NATIONAL COVERAGE DETERMINATION.—For purposes of this section, the term ‘national coverage determination’ means a determination by the Secretary with respect to whether or not a particular item or

service is covered nationally under this title, but does not

include a determination of what code, if any, is assigned to

a particular item or service covered under this title or a determination with respect to the amount of payment made

for a particular item or service so covered.

‘‘(2) LOCAL COVERAGE DETERMINATION.—

‘‘(A) IN GENERAL.—Review of any local coverage determination shall be subject to the following limitations:

‘‘(i) Upon the filing of a complaint by an aggrieved

party, such a determination shall be reviewed by an

833

administrative law judge of the Social Security Administration. The administrative law judge—

‘‘(I) shall review the record and shall permit

discovery and the taking of evidence to evaluate

the reasonableness of the determination, if the administrative law judge determines that the record

is incomplete or lacks adequate information to support the validity of the determination;

‘‘(II) may, as appropriate, consult with appropriate scientific and clinical experts; and

‘‘(III) shall defer only to the reasonable findings of fact, reasonable interpretations of law, and

reasonable applications of fact to law by the Secretary.

‘‘(ii) Upon the filing of a complaint by an aggrieved

party, a decision of an administrative law judge under

clause (i) shall be reviewed by the Departmental Appeals Board of the Department of Health and Human

Services.

‘‘(iii) The Secretary shall implement a decision of

the administrative law judge or the Departmental Appeals Board within 30 days of receipt of such decision.

‘‘(iv) A decision of the Departmental Appeals Board

constitutes a final agency action and is subject to judicial review.

‘‘(B) DEFINITION OF LOCAL COVERAGE DETERMINATION.—For purposes of this section, the term ‘local coverage

determination’ means a determination by a fiscal intermediary or a carrier under part A or part B, as applicable,

respecting whether or not a particular item or service is

covered on an intermediary- or carrier-wide basis under

such parts, in accordance with section 1862(a)(1)(A).

‘‘(3) NO MATERIAL ISSUES OF FACT IN DISPUTE.—In the case

of a determination that may otherwise be subject to review

under paragraph (1)(A)(iii) or paragraph (2)(A)(i), where the

moving party alleges that—

‘‘(A) there are no material issues of fact in dispute, and

‘‘(B) the only issue of law is the constitutionality of a

provision of this title, or that a regulation, determination,

or ruling by the Secretary is invalid,

the moving party may seek review by a court of competent jurisdiction without filing a complaint under such paragraph and

without otherwise exhausting other administrative remedies.

‘‘(4) PENDING NATIONAL COVERAGE DETERMINATIONS.—

‘‘(A) IN GENERAL.—In the event the Secretary has not

issued a national coverage or noncoverage determination

with respect to a particular type or class of items or services, an aggrieved person (as described in paragraph (5))

may submit to the Secretary a request to make such a determination with respect to such items or services. By not

later than the end of the 90-day period beginning on the

date the Secretary receives such a request (notwithstanding

the receipt by the Secretary of new evidence (if any) during

834

such 90-day period), the Secretary shall take one of the following actions:

‘‘(i) Issue a national coverage determination, with

or without limitations.

‘‘(ii) Issue a national noncoverage determination.

‘‘(iii) Issue a determination that no national coverage or noncoverage determination is appropriate as

of the end of such 90-day period with respect to national coverage of such items or services.

‘‘(iv) Issue a notice that states that the Secretary

has not completed a review of the request for a national

coverage determination and that includes an identification of the remaining steps in the Secretary’s review

process and a deadline by which the Secretary will

complete the review and take an action described in

subclause (I), (II), or (III).

‘‘(B) DEEMED ACTION BY THE SECRETARY.—In the case

of an action described in clause (i)(IV), if the Secretary fails

to take an action referred to in such clause by the deadline

specified by the Secretary under such clause, then the Secretary is deemed to have taken an action described in

clause (i)(III) as of the deadline.

‘‘(C) EXPLANATION OF DETERMINATION.—When issuing

a determination under clause (i), the Secretary shall include an explanation of the basis for the determination. An

action taken under clause (i) (other than subclause (IV)) is

deemed to be a national coverage determination for purposes of review under subparagraph (A).

‘‘(5) STANDING.—An action under this subsection seeking review of a national coverage determination or local coverage determination may be initiated only by individuals entitled to

benefits under part A, or enrolled under part B, or both, who

are in need of the items or services that are the subject of the

coverage determination.

‘‘(6) PUBLICATION ON THE INTERNET OF DECISIONS OF HEARINGS OF THE SECRETARY.—Each decision of a hearing by the

Secretary with respect to a national coverage determination

shall be made public, and the Secretary shall publish each decision on the Medicare Internet site of the Department of Health

and Human Services. The Secretary shall remove from such decision any information that would identify any individual, provider of services, or supplier.

‘‘(7) ANNUAL REPORT ON NATIONAL COVERAGE DETERMINATIONS.—

‘‘(A) IN GENERAL.—Not later than December 1 of each

year, beginning in 2001, the Secretary shall submit to Congress a report that sets forth a detailed compilation of the

actual time periods that were necessary to complete and

fully implement national coverage determinations that were

made in the previous fiscal year for items, services, or medical devices not previously covered as a benefit under this

title, including, with respect to each new item, service, or

medical device, a statement of the time taken by the Secretary to make and implement the necessary coverage, codVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00838 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.007 pfrm03 PsN: HR1033
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ing, 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 DETERMINA- TIONS.—Section 1862(a) (42 U.S.C. 1395y(a)) is amended by adding

at the end the following new sentence: ‘‘In making a national coverage determination (as defined in paragraph (1)(B) of section

1869(f)) the Secretary shall ensure that the public is afforded notice

and opportunity to comment prior to implementation by the Secretary of the determination; meetings of advisory committees established under section 1114(f) with respect to the determination are

made on the record; in making the determination, the Secretary has

considered applicable information (including clinical experience and

medical, technical, and scientific evidence) with respect to the subject matter of the determination; and in the determination, provide

a clear statement of the basis for the determination (including responses to comments received from the public), the assumptions underlying that basis, and make available to the public the data (other

than proprietary data) considered in making the determination.’’.

(c) IMPROVEMENTS TO THE MEDICARE ADVISORY COMMITTEE

PROCESS.—Section 1114 (42 U.S.C. 1314) is amended by adding at

the end the following new subsection:

‘‘(i)(1) Any advisory committee appointed under subsection (f) to

advise the Secretary on matters relating to the interpretation, application, or implementation of section 1862(a)(1) shall assure the full

participation of a nonvoting member in the deliberations of the advisory committee, and shall provide such nonvoting member access

to all information and data made available to voting members of

the advisory committee, other than information that—

‘‘(A) is exempt from disclosure pursuant to subsection (a) of

section 552 of title 5, United States Code, by reason of subsection (b)(4) of such section (relating to trade secrets); or

‘‘(B) the Secretary determines would present a conflict of interest relating to such nonvoting member.

‘‘(2) If an advisory committee described in paragraph (1) organizes into panels of experts according to types of items or services

considered by the advisory committee, any such panel of experts

may report any recommendation with respect to such items or services directly to the Secretary without the prior approval of the advisory committee or an executive committee thereof.’’.

(d) EFFECTIVE DATE.—The amendments made by this section

shall apply with respect to—

(1) a review of any national or local coverage determination

filed,

(2) a request to make such a determination made, and

(3) a national coverage determination made,

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on or after October 1, 2001.

Subtitle D—Improving Access to New Technologies

SEC. 531. REIMBURSEMENT IMPROVEMENTS FOR NEW CLINICAL LABORATORY TESTS AND DURABLE MEDICAL EQUIPMENT.

(a) PAYMENT RULE FOR NEW LABORATORY TESTS.—Section

1833(h)(4)(B)(viii) (42 U.S.C. 1395l(h)(4)(B)(viii)) is amended by inserting before the period at the end the following: ‘‘(or 100 percent

of such median in the case of a clinical diagnostic laboratory test

performed on or after January 1, 2001, that the Secretary determines is a new test for which no limitation amount has previously

been established under this subparagraph)’’.

(b) ESTABLISHMENT OF CODING AND PAYMENT PROCEDURES FOR

NEW CLINICAL DIAGNOSTIC LABORATORY TESTS AND OTHER ITEMS

ON A FEE SCHEDULE.—Not later than 1 year after the date of the

enactment of this Act, the Secretary of Health and Human Services

shall establish procedures for coding and payment determinations

for the categories of new clinical diagnostic laboratory tests and new

durable medical equipment under part B of title XVIII of the Social

Security Act that permit public consultation in a manner consistent

with the procedures established for implementing coding modifications for ICD–9–CM.

(c) REPORT ON PROCEDURES USED FOR ADVANCED, IMPROVED

TECHNOLOGIES.—Not later than 1 year after the date of the enactment of this Act, the Secretary of Health and Human Services shall

submit to Congress a report that identifies the specific procedures

used by the Secretary under part B of title XVIII of the Social Security Act to adjust payments for clinical diagnostic laboratory tests

and durable medical equipment which are classified to existing

codes where, because of an advance in technology with respect to the

test or equipment, there has been a significant increase or decrease

in the resources used in the test or in the manufacture of the equipment, and there has been a significant improvement in the performance of the test or equipment. The report shall include such recommendations for changes in law as may be necessary to assure fair

and appropriate payment levels under such part for such improved

tests and equipment as reflects increased costs necessary to produce

improved results.

SEC. 532. RETENTION OF HCPCS LEVEL III CODES.

(a) IN GENERAL.—The Secretary of Health and Human Services

shall maintain and continue the use of level III codes of the HCPCS

coding system (as such system was in effect on August 16, 2000)

through December 31, 2003, and shall make such codes available to

the public.

(b) DEFINITION.—For purposes of this section, the term ‘‘HCPCS

Level III codes’’ means the alphanumeric codes for local use under

the Health Care Financing Administration Common Procedure Coding System (HCPCS).

SEC. 533. RECOGNITION OF NEW MEDICAL TECHNOLOGIES UNDER INPATIENT HOSPITAL PPS.

(a) EXPEDITING RECOGNITION OF NEW TECHNOLOGIES INTO INPATIENT PPS CODING SYSTEM.—

837

(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 INCOR- PORATING NEW MEDICAL SERVICES AND TECHNOLOGIES.— (1) ESTABLISHMENT OF MECHANISM.—Section 1886(d)(5) (42

U.S.C. 1395ww(d)(5)) is amended by adding at the end the following new subparagraphs:

‘‘(K)(i) Effective for discharges beginning on or after October 1,

2001, the Secretary shall establish a mechanism to recognize the

costs of new medical services and technologies under the payment

system established under this subsection. Such mechanism shall be

established after notice and opportunity for public comment (in the

publications required by subsection (e)(5) for a fiscal year or otherwise).

‘‘(ii) The mechanism established pursuant to clause (i) shall—

‘‘(I) apply to a new medical service or technology if, based

on the estimated costs incurred with respect to discharges involving such service or technology, the DRG prospective payment rate otherwise applicable to such discharges under this

subsection is inadequate;

‘‘(II) provide for the collection of data with respect to the

costs of a new medical service or technology described in subclause (I) for a period of not less than two years and not more

than three years beginning on the date on which an inpatient

hospital code is issued with respect to the service or technology;

‘‘(III) subject to paragraph (4)(C)(iii), provide for additional

payment to be made under this subsection with respect to discharges involving a new medical service or technology described

in subclause (I) that occur during the period described in subclause (II) in an amount that adequately reflects the estimated

average cost of such service or technology; and

‘‘(IV) provide that discharges involving such a service or

technology that occur after the close of the period described in

subclause (II) will be classified within a new or existing diagnosis-related group with a weighting factor under paragraph

(4)(B) that is derived from cost data collected with respect to

discharges occurring during such period.

‘‘(iii) For purposes of clause (ii)(II), the term ‘inpatient hospital

code’ means any code that is used with respect to inpatient hospital

services for which payment may be made under this subsection and

includes an alphanumeric code issued under the International Classification of Diseases, 9th Revision, Clinical Modification (‘ICD–9–

CM’) and its subsequent revisions.

‘‘(iv) For purposes of clause (ii)(III), the term ‘additional payment’ means, with respect to a discharge for a new medical service

838

or technology described in clause (ii)(I), an amount that exceeds the

prospective payment rate otherwise applicable under this subsection

to discharges involving such service or technology that would be

made but for this subparagraph.

‘‘(v) The requirement under clause (ii)(III) for an additional

payment may be satisfied by means of a new-technology group (described in subparagraph (L)), an add-on payment, a payment adjustment, or any other similar mechanism for increasing the

amount otherwise payable with respect to a discharge under this

subsection. The Secretary may not establish a separate fee schedule

for such additional payment for such services and technologies, by

utilizing a methodology established under subsection (a) or (h) of

section 1834 to determine the amount of such additional payment,

or by other similar mechanisms or methodologies.

‘‘(vi) For purposes of this subparagraph and subparagraph (L),

a medical service or technology will be considered a ‘new medical

service or technology’ if the service or technology meets criteria established by the Secretary after notice and an opportunity for public

comment.

‘‘(L)(i) In establishing the mechanism under subparagraph (K),

the Secretary may establish new-technology groups into which a

new medical service or technology will be classified if, based on the

estimated average costs incurred with respect to discharges involving such service or technology, the DRG prospective payment rate

otherwise applicable to such discharges under this subsection is inadequate.

‘‘(ii) Such groups—

‘‘(I) shall not be based on the costs associated with a specific new medical service or technology; but

‘‘(II) shall, in combination with the applicable standardized

amounts and the weighting factors assigned to such groups

under paragraph (4)(B), reflect such cost cohorts as the Secretary determines are appropriate for all new medical services

and technologies that are likely to be provided as inpatient hospital services in a fiscal year.

‘‘(iii) The methodology for classifying specific hospital discharges within a diagnosis-related group under paragraph (4)(A) or

a new-technology group shall provide that a specific hospital discharge may not be classified within both a diagnosis-related group

and a new-technology group.’’.

(2) PRIOR CONSULTATION.—The Secretary of Health and

Human Services shall consult with groups representing hospitals, physicians, and manufacturers of new medical technologies before publishing the notice of proposed rulemaking required by section 1886(d)(5)(K)(i) of the Social Security Act (as

added by paragraph (1)).

(3) CONFORMING AMENDMENT.—Section 1886(d)(4)(C)(i) (42

U.S.C. 1395ww(d)(4)(C)(i)) is amended by striking ‘‘technology,’’

and inserting ‘‘technology (including a new medical service or

technology under paragraph (5)(K)),’’.

Subtitle E—Other Provisions

SEC. 541. INCREASE IN REIMBURSEMENT FOR BAD DEBT.

Section 1861(v)(1)(T) (42 U.S.C. 1395x(v)(1)(T)) is amended—

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(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-forservice medicare beneficiary who is an inpatient or outpatient of a

covered hospital, the Secretary of Health and Human Services shall

treat such component as a service for which payment shall be made

to the laboratory under section 1848 of the Social Security Act (42

U.S.C. 1395w–4) and not as an inpatient hospital service for which

payment is made to the hospital under section 1886(d) of such Act

(42 U.S.C. 1395ww(d)) or as an outpatient hospital service for

which payment is made to the hospital under section 1833(t) of such

Act (42 U.S.C. 1395l(t)).

(b) DEFINITIONS.—For purposes of this section:

(1) COVERED HOSPITAL.—The term ‘‘covered hospital’’

means, with respect to an inpatient or an outpatient, a hospital

that had an arrangement with an independent laboratory that

was in effect as of July 22, 1999, under which a laboratory furnished the technical component of physician pathology services

to fee-for-service medicare beneficiaries who were hospital inpatients or outpatients, respectively, and submitted claims for payment for such component to a medicare carrier (that has a contract with the Secretary under section 1842 of the Social Security Act, 42 U.S.C. 1395u) and not to such hospital.

(2) FEE-FOR-SERVICE MEDICARE BENEFICIARY.—The term

‘‘fee-for-service medicare beneficiary’’ means an individual

who—

(A) is entitled to benefits under part A, or enrolled

under part B, or both, of such title; and

(B) is not enrolled in any of the following:

(i) A Medicare+Choice plan under part C of such

title.

(ii) A plan offered by an eligible organization

under section 1876 of such Act (42 U.S.C. 1395mm).

(iii) A program of all-inclusive care for the elderly

(PACE) under section 1894 of such Act (42 U.S.C.

1395eee).

(iv) A social health maintenance organization

(SHMO) demonstration project established under section 4018(b) of the Omnibus Budget Reconciliation Act

of 1987 (Public Law 100–203).

(c) EFFECTIVE DATE.—This section shall apply to services furnished during the 2-year period beginning on January 1, 2001.

(d) GAO REPORT.—

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(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-forservice medicare beneficiaries to the technical component of

physician pathology services.

(2) REPORT.—Not later than April 1, 2002, the Comptroller

General shall submit to Congress a report on such study. The

report shall include recommendations about whether such provisions should be extended after the end of the period specified

in subsection (c) for either or both inpatient and outpatient hospital services, and whether the provisions should be extended to

other hospitals.

SEC. 543. EXTENSION OF ADVISORY OPINION AUTHORITY.

Section 1128D(b)(6) (42 U.S.C. 1320a–7d(b)(6)) is amended by

striking ‘‘and before the date which is 4 years after such date of enactment’’.

SEC. 544. CHANGE IN ANNUAL MEDPAC REPORTING.

(a) REVISION OF DEADLINES FOR SUBMISSION OF REPORTS.— (1) IN GENERAL.—Section 1805(b)(1)(D) (42 U.S.C. 1395b–

6(b)(1)(D)) is amended by striking ‘‘June 1 of each year (beginning with 1998),’’ and inserting ‘‘June 15 of each year,’’.

(2) EFFECTIVE DATE.—The amendment made by paragraph

(1) shall apply beginning with 2001.

(b) REQUIREMENT FOR ON THE RECORD VOTES ON RECOMMENDATIONS.—Section 1805(b) (42 U.S.C. 1395b–6(b)) is amended by adding at the end the following new paragraph:

‘‘(7) VOTING AND REPORTING REQUIREMENTS.—With respect

to each recommendation contained in a report submitted under

paragraph (1), each member of the Commission shall vote on

the recommendation, and the Commission shall include, by

member, the results of that vote in the report containing the recommendation.’’.

SEC. 545. DEVELOPMENT OF PATIENT ASSESSMENT INSTRUMENTS.

(a) DEVELOPMENT.—

(1) IN GENERAL.—Not later than January 1, 2005, the Secretary of Health and Human Services shall submit to the Committee on Ways and Means and the Committee on Commerce of

the House of Representatives and the Committee on Finance of

the Senate a report on the development of standard instruments

for the assessment of the health and functional status of patients, for whom items and services described in subsection (b)

are furnished, and include in the report a recommendation on

the use of such standard instruments for payment purposes.

(2) DESIGN FOR COMPARISON OF COMMON ELEMENTS.—The

Secretary shall design such standard instruments in a manner

such that—

(A) elements that are common to the items and services

described in subsection (b) may be readily comparable and

are statistically compatible;

(B) only elements necessary to meet program objectives

are collected; and

(C) the standard instruments supersede any other assessment instrument used before that date.

841

(3) CONSULTATION.—In developing an assessment instrument under paragraph (1), the Secretary shall consult with the

Medicare Payment Advisory Commission, the Agency for

Healthcare Research and Quality, and qualified organizations

representing providers of services and suppliers under title

XVIII.

(b) DESCRIPTION OF SERVICES.—For purposes of subsection (a),

items and services described in this subsection are those items and

services furnished to individuals entitled to benefits under part A,

or enrolled under part B, or both of title XVIII of the Social Security

Act for which payment is made under such title, and include the following:

(1) Inpatient and outpatient hospital services.

(2) Inpatient and outpatient rehabilitation services.

(3) Covered skilled nursing facility services.

(4) Home health services.

(5) Physical or occupational therapy or speech-language pathology services.

(6) Items and services furnished to such individuals determined to have end stage renal disease.

(7) Partial hospitalization services and other mental health

services.

(8) Any other service for which payment is made under

such title as the Secretary determines to be appropriate.

SEC. 546. GAO REPORT ON IMPACT OF THE EMERGENCY MEDICAL

TREATMENT AND ACTIVE LABOR ACT (EMTALA) ON HOSPITAL EMERGENCY DEPARTMENTS.

(a) REPORT.—The Comptroller General of the United States

shall submit a report to the Committee on Commerce and the Committee on Ways and Means of the House of Representatives and the

Committee on Finance of the Senate by May 1, 2001, on the effect

of the Emergency Medical Treatment and Active Labor Act on hospitals, emergency physicians, and physicians covering emergency department call throughout the United States.

(b) REPORT REQUIREMENTS.—The report should evaluate—

(1) the extent to which hospitals, emergency physicians, and

physicians covering emergency department call provide uncompensated services in relation to the requirements of EMTALA;

(2) the extent to which the regulatory requirements and enforcement of EMTALA have expanded beyond the legislation’s

original intent;

(3) estimates for the total dollar amount of EMTALA-related care uncompensated costs to emergency physicians, physicians covering emergency department call, hospital emergency

departments, and other hospital services;

(4) the extent to which different portions of the United

States may be experiencing different levels of uncompensated

EMTALA-related care;

(5) the extent to which EMTALA would be classified as an

unfunded mandate if it were enacted today;

(6) the extent to which States have programs to provide financial support for such uncompensated care;

842

(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 IN- CREASE.—The payment increase provided under section

502(b)(1)(B) shall not apply to episodes and visits ending after

fiscal year 2001 and shall not be taken into account in calculating the payment amounts applicable for subsequent episodes

and visits.

(2) TEMPORARY INCREASE FOR RURAL HOME HEALTH SERVICES.—The payment increase provided under section 508(a) for

the period beginning on April 1, 2001, and ending on September 30, 2002, shall not apply to episodes and visits ending

after such period, and shall not be taken into account in calculating the payment amounts applicable for episodes and visits

occurring after such period.

(d) CALENDAR YEAR 2001 PROVISIONS.—The payment increase

provided under the following sections shall not apply after calendar

year 2001 and shall not be taken into account in calculating the

payment amounts applicable for items and services furnished after

such year:

(1) Section 401(c)(2) (relating to covered OPD services).

(2) Section 422(e)(2) (relating to renal dialysis services paid

for on a composite rate basis).

(3) Section 423(a)(2)(B) (relating to ambulance services).

(4) Section 425(b)(2) (relating to durable medical equipment).

(5) Section 426(b)(2) (relating to prosthetic devices and

orthotics and prosthetics).

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TITLE VI—PROVISIONS RELATING TO PART C

(MEDICARE+CHOICE PROGRAM) AND OTHER MEDICARE MANAGED CARE PROVISIONS

Subtitle A—Medicare+Choice Payment Reforms

SEC. 601. INCREASE IN MINIMUM PAYMENT AMOUNT.

(a) IN GENERAL.—Section 1853(c)(1)(B) (42 U.S.C. 1395w–

23(c)(1)(B)) is amended—

(1) by redesignating clause (ii) as clause (iv);

(2) by inserting after clause (i) the following new clauses:

‘‘(ii) For 1999 and 2000, the minimum amount determined under clause (i) or this clause, respectively,

for the preceding year, increased by the national per

capita Medicare+Choice growth percentage described in

paragraph (6)(A) applicable to 1999 or 2000, respectively.

‘‘(iii)(I) Subject to subclause (II), for 2001, for any

area in a Metropolitan Statistical Area with a population of more than 250,000, $525, and for any other

area $475.

‘‘(II) In the case of an area outside the 50 States

and the District of Columbia, the amount specified in

this clause shall not exceed 120 percent of the amount

determined under clause (ii) for such area for 2000.’’;

and

(3) in clause (iv), as so redesignated—

(A) by striking ‘‘a succeeding year’’ and inserting ‘‘2002

and each succeeding year’’; and

(B) by striking ‘‘clause (i)’’ and inserting ‘‘clause (iii)’’.

(b) SPECIAL RULE FOR JANUARY AND FEBRUARY OF 2001.—

(1) IN GENERAL.—Notwithstanding the amendments made

by subsection (a), for purposes of making payments under section 1853 of the Social Security Act (42 U.S.C. 1395w–23) for

January and February 2001, the annual Medicare+Choice capitation rate for a Medicare+Choice payment area shall be calculated, and the excess amount under section 1854(f)(1)(B) of

such Act (42 U.S.C. 1395w–24(f)(1)(B)) shall be determined, as

if such amendments had not been enacted.

(2) CONSTRUCTION.—Paragraph (1) shall not be taken into

account in computing such capitation rate for 2002 and subsequent years.

SEC. 602. INCREASE IN MINIMUM PERCENTAGE INCREASE.

(a) IN GENERAL.—Section 1853(c)(1)(C) (42 U.S.C. 1395w–

23(c)(1)(C)) is amended—

(1) by redesignating clause (ii) as clause (iv);

(2) by inserting after clause (i) the following new clauses:

‘‘(ii) For 1999 and 2000, 102 percent of the annual

Medicare+Choice capitation rate under this paragraph

for the area for the previous year.

‘‘(iii) For 2001, 103 percent of the annual

Medicare+Choice capitation rate under this paragraph

for the area for 2000.’’; and

844

(3) in clause (iv), as so redesignated, by striking ‘‘a subsequent year’’ and inserting ‘‘2002 and each succeeding year’’.

(b) APPLICATION OF SPECIAL RULE FOR JANUARY AND FEBRUARY

OF 2001.—The provisions of section 601(b) shall apply with respect

to the amendments made by subsection (a) in the same manner as

they apply to the amendments made by section 601(a).

SEC. 603. PHASE-IN OF RISK ADJUSTMENT.

Section 1853(a)(3)(C) (42 U.S.C. 1395w–23(a)(3)(C)) is

amended—

(1) in clause (ii)—

(A) in subclause (I), by striking ‘‘and 2001’’ and inserting ‘‘and each succeeding year through 2003’’ and by striking ‘‘and’’ at the end; and

(B) by striking subclause (II) and inserting the following new subclauses:

‘‘(II) 30 percent of such capitation rate in 2004;

‘‘(III) 50 percent of such capitation rate in

2005;

‘‘(IV) 75 percent of such capitation rate in

2006; and

‘‘(V) 100 percent of such capitation rate in

2007 and succeeding years.’’; and

(2) by adding at the end the following new clause:

‘‘(iii) DATA FOR RISK ADJUSTMENT METHODOLOGY.—Such risk adjustment methodology for 2004

and each succeeding year, shall be based on data from

inpatient hospital and ambulatory settings.’’.

SEC. 604. TRANSITION TO REVISED MEDICARE+CHOICE PAYMENT

RATES.

(a) ANNOUNCEMENT OF REVISED MEDICARE+CHOICE PAYMENT

RATES.—Within 2 weeks after the date of the enactment of this Act,

the Secretary of Health and Human Services shall determine, and

shall announce (in a manner intended to provide notice to interested

parties) Medicare+Choice capitation rates under section 1853 of the

Social Security Act (42 U.S.C. 1395w–23) for 2001, revised in accordance with the provisions of this Act.

(b) REENTRY INTO PROGRAM PERMITTED FOR

MEDICARE+CHOICE PROGRAMS.—A Medicare+Choice organization

that provided notice to the Secretary of Health and Human Services

before the date of the enactment of this Act that it was terminating

its contract under part C of title XVIII of the Social Security Act

or was reducing the service area of a Medicare+Choice plan offered

under such part shall be permitted to continue participation under

such part, or to maintain the service area of such plan, for 2001 if

it submits the Secretary with the information described in section

1854(a)(1) of the Social Security Act (42 U.S.C. 1395w–24(a)(1))

within 2 weeks after the date revised rates are announced by the

Secretary under subsection (a).

(c) REVISED SUBMISSION OF PROPOSED PREMIUMS AND RELATED

INFORMATION.—If—

(1) a Medicare+Choice organization provided notice to the

Secretary of Health and Human Services as of July 3, 2000,

that it was renewing its contract under part C of title XVIII of

845

the Social Security Act for all or part of the service area or

areas served under its current contract, and

(2) any part of the service area or areas addressed in such

notice includes a payment area for which the Medicare+Choice

capitation rate under section 1853(c) of such Act (42 U.S.C.

1395w–23(c)) for 2001, as determined under subsection (a), is

higher than the rate previously determined for such year,

such organization shall revise its submission of the information described in section 1854(a)(1) of the Social Security Act (42 U.S.C.

1395w–24(a)(1)), and shall submit such revised information to the

Secretary, within 2 weeks after the date revised rates are announced

by the Secretary under subsection (a). In making such submission,

the organization may only reduce beneficiary premiums, reduce beneficiary cost-sharing, enhance benefits, utilize the stabilization fund

described in section 1854(f)(2) of such Act (42 U.S.C. 1395w–

24(f)(2)), or stabilize or enhance beneficiary access to providers (so

long as such stabilization or enhancement does not result in increased beneficiary premiums, increased beneficiary cost-sharing, or

reduced benefits).

(d) WAIVER OF LIMITS ON STABILIZATION FUND.—Any regulatory provision that limits the proportion of the excess amount that

can be withheld in such stabilization fund for a contract period

shall not apply with respect to submissions described in subsections

(b) and (c).

(e) DISREGARD OF NEW RATE ANNOUNCEMENT IN APPLYING

PASS-THROUGH FOR NEW NATIONAL COVERAGE DETERMINATIONS.—

For purposes of applying section 1852(a)(5) of the Social Security

Act (42 U.S.C. 1395w–22(a)(5)), the announcement of revised rates

under subsection (a) shall not be treated as an announcement under

section 1853(b) of such Act (42 U.S.C. 1395w–23(b)).

SEC. 605. REVISION OF PAYMENT RATES FOR ESRD PATIENTS ENROLLED IN MEDICARE+CHOICE PLANS.

(a) IN GENERAL.—Section 1853(a)(1)(B) (42 U.S.C. 1395w–

23(a)(1)(B)) is amended by adding at the end the following: ‘‘In establishing such rates, the Secretary shall provide for appropriate

adjustments to increase each rate to reflect the demonstration rate

(including the risk adjustment methodology associated with such

rate) of the social health maintenance organization end-stage renal

disease capitation demonstrations (established by section 2355 of

the Deficit Reduction Act of 1984, as amended by section 13567(b)

of the Omnibus Budget Reconciliation Act of 1993), and shall compute such rates by taking into account such factors as renal treatment modality, age, and the underlying cause of the end-stage renal

disease.’’.

(b) EFFECTIVE DATE.—The amendment made by subsection (a)

shall apply to payments for months beginning with January 2002.

(c) PUBLICATION.—Not later than 6 months after the date of the

enactment of this Act, the Secretary of Health and Human Services

shall publish for public comment a description of the appropriate

adjustments described in the last sentence of section 1853(a)(1)(B)

of the Social Security Act (42 U.S.C. 1395w–23(a)(1)(B)), as added

by subsection (a). The Secretary shall publish such adjustments in

final form by not later than July 1, 2001, so that the amendment

846

made by subsection (a) is implemented on a timely basis consistent

with subsection (b).

SEC. 606. PERMITTING PREMIUM REDUCTIONS AS ADDITIONAL BENEFITS UNDER MEDICARE+CHOICE PLANS.

(a) IN GENERAL.— (1) AUTHORIZATION OF PART B PREMIUM REDUCTIONS.—Section 1854(f)(1) (42 U.S.C. 1395w–24(f)(1)) is amended—

(A) by redesignating subparagraph (E) as subparagraph (F); and

(B) by inserting after subparagraph (D) the following

new subparagraph:

‘‘(E) PREMIUM REDUCTIONS.— ‘‘(i) IN GENERAL.—Subject to clause (ii), as part of

providing any additional benefits required under subparagraph (A), a Medicare+Choice organization may

elect a reduction in its payments under section

1853(a)(1)(A) with respect to a Medicare+Choice plan

and the Secretary shall apply such reduction to reduce

the premium under section 1839 of each enrollee in

such plan as provided in section 1840(i).

‘‘(ii) AMOUNT OF REDUCTION.—The amount of the

reduction under clause (i) with respect to any enrollee

in a Medicare+Choice plan—

‘‘(I) may not exceed 125 percent of the premium described under section 1839(a)(3); and

‘‘(II) shall apply uniformly to each enrollee of

the Medicare+Choice plan to which such reduction

applies.’’.

(2) CONFORMING AMENDMENTS.— (A) ADJUSTMENT OF PAYMENTS TO MEDICARE+CHOICE

ORGANIZATIONS.—Section 1853(a)(1)(A) (42 U.S.C. 1395w–

23(a)(1)(A)) is amended by inserting ‘‘reduced by the

amount of any reduction elected under section 1854(f)(1)(E)

and’’ after ‘‘for that area,’’.

(B) ADJUSTMENT AND PAYMENT OF PART B PREMIUMS.—

(i) ADJUSTMENT OF PREMIUMS.—Section 1839(a)(2)

(42 U.S.C. 1395r(a)(2)) is amended by striking ‘‘shall’’

and all that follows and inserting the following: ‘‘shall

be the amount determined under paragraph (3), adjusted as required in accordance with subsections (b),

(c), and (f), and to reflect 80 percent of any reduction

elected under section 1854(f)(1)(E).’’.

(ii) PAYMENT OF PREMIUMS.—Section 1840 (42

U.S.C. 1395s) is amended by adding at the end the following new subsection:

‘‘(i) In the case of an individual enrolled in a Medicare+Choice

plan, the Secretary shall provide for necessary adjustments of the

monthly beneficiary premium to reflect 80 percent of any reduction

elected under section 1854(f)(1)(E). To the extent to which the Secretary determines that such an adjustment is appropriate, with the

concurrence of any agency responsible for the administration of such

benefits, such premium adjustment may be provided directly, as an

adjustment to any social security, railroad retirement, or civil service retirement benefits, or, in the case of an individual who receives

847

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)’’.

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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 phasein 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 medicareeligible beneficiaries;

(2) the change in Medicare+Choice capitation payment

rates if such costs are included in the calculation of payment

rates;

(3) one or more proposals for the implementation of payment adjustments to Medicare+Choice plans in counties where

the payment rate has been affected due to the failure to calculate the cost of such services to medicare-eligible beneficiaries;

and

(4) a system to ensure that when a Medicare+Choice enrollee receives covered services through a facility of the Department of Veterans Affairs or the Department of Defense there is

an appropriate payment recovery to the medicare program

under title XVIII of the Social Security Act.

Subtitle B—Other Medicare+Choice Reforms

SEC. 611. PAYMENT OF ADDITIONAL AMOUNTS FOR NEW BENEFITS

COVERED DURING A CONTRACT TERM.

(a) IN GENERAL.—Section 1853(c)(7) (42 U.S.C. 1395w–23(c)(7))

is amended to read as follows:

‘‘(7) ADJUSTMENT FOR NATIONAL COVERAGE DETERMINATIONS AND LEGISLATIVE CHANGES IN BENEFITS.—If the Secretary

makes a determination with respect to coverage under this title

or there is a change in benefits required to be provided under

this part that the Secretary projects will result in a significant

increase in the costs to Medicare+Choice of providing benefits

under contracts under this part (for periods after any period described in section 1852(a)(5)), the Secretary shall adjust appropriately the payments to such organizations under this part.

Such projection and adjustment shall be based on an analysis

by the Chief Actuary of the Health Care Financing Administration of the actuarial costs associated with the new benefits.’’.

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(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

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(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:

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‘‘(i) MEDICARE+CHOICE PROGRAM COMPATIBILITY WITH EM- PLOYER OR UNION GROUP HEALTH PLANS.—To facilitate the offering

of Medicare+Choice plans under contracts between Medicare+Choice

organizations and employers, labor organizations, or the trustees of

a fund established by 1 or more employers or labor organizations

(or combination thereof) to furnish benefits to the entity’s employees,

former employees (or combination thereof) or members or former

members (or combination thereof) of the labor organizations, the

Secretary may waive or modify requirements that hinder the design

of, the offering of, or the enrollment in such Medicare+Choice

plans.’’.

(b) EFFECTIVE DATE.—The amendment made by subsection (a)

shall apply with respect to years beginning with 2001.

SEC. 618. SPECIAL MEDIGAP ENROLLMENT ANTIDISCRIMINATION PROVISION FOR CERTAIN BENEFICIARIES.

(a) DISENROLLMENT WINDOW IN ACCORDANCE WITH BENE- FICIARY’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 subVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00855 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.007 pfrm03 PsN: HR1033
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paragraph, 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 PERI- ODS.—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

853

subsequently under this clause), if the enrollment is

discontinued under circumstances described in section

1851(e)(4)(A), then the individual will be treated as a

‘Medicare+Choice eligible individual’ for purposes of

electing to continue enrollment in another

Medicare+Choice plan.’’.

(b) EFFECTIVE DATE.— (1) IN GENERAL.—The amendment made by subsection (a)

shall apply to terminations and discontinuations occurring on

or after the date of the enactment of this Act.

(2) APPLICATION TO PRIOR PLAN TERMINATIONS.—Clause (ii)

of section 1851(a)(3)(B) of the Social Security Act (as inserted

by subsection (a)) shall also apply to individuals whose enrollment in a Medicare+Choice plan was terminated or discontinued after December 31, 1998, and before the date of the enactment of this Act. In applying this paragraph, such an individual shall be treated, for purposes of part C of title XVIII of

the Social Security Act, as having discontinued enrollment in

such a plan as of the date of the enactment of this Act.

SEC. 621. PROVIDING CHOICE FOR SKILLED NURSING FACILITY SERVICES UNDER THE MEDICARE+CHOICE PROGRAM.

(a) IN GENERAL.—Section 1852 (42 U.S.C. 1395w–22) is amended by adding at the end the following new subsection:

‘‘(l) RETURN TO HOME SKILLED NURSING FACILITIES FOR COV- ERED 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, costsharing, 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 posthospital 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:

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‘‘(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).

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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 MIDYEAR.

(a) IN GENERAL.—Section 1857(g)(3) (42 U.S.C. 1395w–27(g)(3))

is amended by adding at the end the following new subparagraph:

‘‘(D) Civil monetary penalties of not more than

$100,000, or such higher amount as the Secretary may establish by regulation, where the finding under subsection

(c)(2)(A) is based on the organization’s termination of its

contract under this section other than at a time and in a

manner provided for under subsection (a).’’.

(b) EFFECTIVE DATE.—The amendment made by subsection (a)

shall apply to terminations occurring after the date of the enactment

of this Act.

Subtitle C—Other Managed Care Reforms

SEC. 631. 1-YEAR EXTENSION OF SOCIAL HEALTH MAINTENANCE ORGANIZATION (SHMO) DEMONSTRATION PROJECT.

Section 4018(b)(1) of the Omnibus Budget Reconciliation Act of

1987, as amended by section 531(a)(1) of BBRA (113 Stat. 1501A–

388), is amended by striking ‘‘18 months’’ and inserting ‘‘30

months’’.

SEC. 632. REVISED TERMS AND CONDITIONS FOR EXTENSION OF

MEDICARE COMMUNITY NURSING ORGANIZATION (CNO)

DEMONSTRATION PROJECT.

(a) IN GENERAL.—Section 532 of BBRA (113 Stat. 1501A–388)

is amended—

(1) in subsection (a), by striking the second sentence; and

(2) by striking subsection (b) and inserting the following

new subsection:

‘‘(b) TERMS AND CONDITIONS.—

‘‘(1) JANUARY THROUGH SEPTEMBER 2000.—For the 9-month

period beginning with January 2000, any such demonstration

project shall be conducted under the same terms and conditions

as applied to such demonstration during 1999.

‘‘(2) OCTOBER 2000 THROUGH DECEMBER 2001.—For the 15-

month period beginning with October 2000, any such demonstration project shall be conducted under the same terms and

conditions as applied to such demonstration during 1999, except that the following modifications shall apply:

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‘‘(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

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‘‘(ii) reporting on specified quality indicators for

the enrolled population.

‘‘(c) EVALUATION.— ‘‘(1) PRELIMINARY REPORT.—Not later than July 1, 2001,

the Secretary of Health and Human Services shall submit to the

Committees on Ways and Means and Commerce of the House

of Representatives and the Committee on Finance of the Senate

a preliminary report that—

‘‘(A) evaluates such demonstration projects for the period beginning July 1, 1997, and ending December 31,

1999, on a site-specific basis with respect to the impact on

per beneficiary spending, specific health utilization measures, and enrollee satisfaction; and

‘‘(B) includes a similar evaluation of such projects for

the portion of the extension period that occurs after September 30, 2000.

‘‘(2) FINAL REPORT.—The Secretary shall submit a final report to such Committees on such demonstration projects not

later than July 1, 2002. Such report shall include the same elements as the preliminary report required by paragraph (1), but

for the period after December 31, 1999.

‘‘(3) METHODOLOGY FOR SPENDING COMPARISONS.—Any

evaluation of the impact of the demonstration projects on per

beneficiary spending included in such reports shall include a

comparison of—

‘‘(A) data for all individuals who—

‘‘(i) were enrolled in such demonstration projects as

of the first day of the period under evaluation; and

‘‘(ii) were enrolled for a minimum of 6 months

thereafter; with

‘‘(B) data for a matched sample of individuals who are

enrolled under part B of title XVIII of the Social Security

Act and are not enrolled in such a project, or in a

Medicare+Choice plan under part C of such title, a plan offered by an eligible organization under section 1876 of such

Act, or a health care prepayment plan under section

1833(a)(1)(A) of such Act.’’.

(b) EFFECTIVE DATE.—The amendments made by subsection (a)

shall be effective as if included in the enactment of section 532 of

BBRA (113 Stat. 1501A–388).

SEC. 633. EXTENSION OF MEDICARE MUNICIPAL HEALTH SERVICES

DEMONSTRATION PROJECTS.

Section 9215(a) of the Consolidated Omnibus Budget Reconciliation Act of 1985 (42 U.S.C. 1395b–1 note), as amended by section

6135 of the Omnibus Budget Reconciliation Act of 1989, section

13557 of the Omnibus Budget Reconciliation Act of 1993, section

4017 of BBA, and section 534 of BBRA (113 Stat. 1501A–390), is

amended by striking ‘‘December 31, 2002’’ and inserting ‘‘December

31, 2004’’.

SEC. 634. SERVICE AREA EXPANSION FOR MEDICARE COST CONTRACTS DURING TRANSITION PERIOD.

Section 1876(h)(5) (42 U.S.C. 1395mm(h)(5)) is amended—

(1) by redesignating subparagraph (B) as subparagraph

(C); and

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(2) by inserting after subparagraph (A), the following new

subparagraph:

‘‘(B) Subject to subparagraph (C), the Secretary shall approve

an application for a modification to a reasonable cost contract

under this section in order to expand the service area of such contract if—

‘‘(i) such application is submitted to the Secretary on or before September 1, 2003; and

‘‘(ii) the Secretary determines that the organization with the

contract continues to meet the requirements applicable to such

organizations and contracts under this section.’’.

TITLE VII—MEDICAID

SEC. 701. DSH PAYMENTS.

(a) MODIFICATIONS TO DSH ALLOTMENTS.—

(1) INCREASED ALLOTMENTS FOR FISCAL YEARS 2001 AND

2002.—

(A) IN GENERAL.—Section 1923(f) (42 U.S.C. 1396r–

4(f)) is amended—

(i) in paragraph (2), by striking ‘‘The DSH allotment’’ and inserting ‘‘Subject to paragraph (4), the

DSH allotment’’;

(ii) by redesignating paragraph (4) as paragraph

(6); and

(iii) by inserting after paragraph (3) the following

new paragraph:

‘‘(4) SPECIAL RULE FOR FISCAL YEARS 2001 AND 2002.—

‘‘(A) IN GENERAL.—Notwithstanding paragraph (2), the

DSH allotment for any State for—

‘‘(i) fiscal year 2001, shall be the DSH allotment

determined under paragraph (2) for fiscal year 2000

increased, subject to subparagraph (B) and paragraph

(5), by the percentage change in the consumer price

index for all urban consumers (all items; U.S. city average) for fiscal year 2000; and

‘‘(ii) fiscal year 2002, shall be the DSH allotment

determined under clause (i) increased, subject to subparagraph (B) and paragraph (5), by the percentage

change in the consumer price index for all urban consumers (all items; U.S. city average) for fiscal year

2001.

‘‘(B) LIMITATION.—Subparagraph (B) of paragraph (3)

shall apply to subparagraph (A) of this paragraph in the

same manner as that subparagraph (B) applies to paragraph (3)(A).

‘‘(C) NO APPLICATION TO ALLOTMENTS AFTER FISCAL

YEAR 2002.—The DSH allotment for any State for fiscal year

2003 or any succeeding fiscal year shall be determined

under paragraph (3) without regard to the DSH allotments

determined under subparagraph (A) of this paragraph.’’.

(2) SPECIAL RULE FOR MEDICAID DSH ALLOTMENT FOR EXTREMELY LOW DSH STATES.—

859

(A) IN GENERAL.—Section 1923(f) (42 U.S.C. 1396r–

4(f)), as amended by paragraph (1), is amended by inserting after paragraph (4) the following new paragraph:

‘‘(5) SPECIAL RULE FOR EXTREMELY LOW DSH STATES.—In

the case of a State in which the total expenditures under the

State plan (including Federal and State shares) for disproportionate share hospital adjustments under this section for fiscal

year 1999, as reported to the Administrator of the Health Care

Financing Administration as of August 31, 2000, is greater

than 0 but less than 1 percent of the State’s total amount of expenditures under the State plan for medical assistance during

the fiscal year, the DSH allotment for fiscal year 2001 shall be

increased to 1 percent of the State’s total amount of expenditures under such plan for such assistance during such fiscal

year. In subsequent fiscal years, such increased allotment is

subject to an increase for inflation as provided in paragraph

(3)(A).’’.

(B) CONFORMING AMENDMENT.—Section 1923(f)(3)(A)

(42 U.S.C. 1396r–4(f)(3)(A)) is amended by inserting ‘‘and

paragraph (5)’’ after ‘‘subparagraph (B)’’.

(3) EFFECTIVE DATE.—The amendments made by paragraphs (1) and (2) take effect on the date the final regulation

required under section 705(a) (relating to the application of an

aggregate upper payment limit test for State medicaid spending

for inpatient hospital services, outpatient hospital services,

nursing facility services, intermediate care facility services for

the mentally retarded, and clinic services provided by government facilities that are not State-owned or operated facilities) is

published in the Federal Register.

(b) ASSURING IDENTIFICATION OF MEDICAID MANAGED CARE PA- TIENTS.—

(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 assistVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00863 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.007 pfrm03 PsN: HR1033
860

ance on a fee-for-service basis or through a managed care

entity)’’; and

(C) in subsection (b)(3)(A)(i), by inserting after ‘‘under

a State plan under this title’’ the following: ‘‘(regardless of

whether the services were furnished on a fee-for-service

basis or through a managed care entity)’’.

(3) EFFECTIVE DATES.—

(A) The amendment made by paragraph (1) shall apply

to contracts as of January 1, 2001.

(B) The amendments made by paragraph (2) shall

apply to payments made on or after January 1, 2001.

(c) APPLICATION OF MEDICAID DSH TRANSITION RULE TO PUBLIC HOSPITALS IN ALL STATES.—

(1) IN GENERAL.—During the period described in paragraph

(3), with respect to a State, section 4721(e) of the Balanced

Budget Act of 1997 (Public Law 105–33; 111 Stat. 514), as

amended by section 607 of BBRA (113 Stat. 1501A–396), shall

be applied as though—

(A) ‘‘September 30, 2002’’ were substituted for ‘‘July 1,

1997’’ each place it appears;

(B) ‘‘hospitals owned or operated by a State (as defined

for purposes of title XIX of such Act), or by an instrumentality or a unit of government within a State (as so defined)’’ were substituted for ‘‘the State of California’’;

(C) paragraph (3) were redesignated as paragraph (4);

(D) ‘‘and’’ were omitted from the end of paragraph (2);

and

(E) the following new paragraph were inserted after

paragraph (2):

‘‘(3) ‘(as defined in subparagraph (B) but without regard to

clause (ii) of that subparagraph and subject to subsection (d))’

were substituted for ‘(as defined in subparagraph (B))’ in subparagraph (A) of such section; and’’.

(2) SPECIAL RULE.—With respect to California, section

4721(e) of the Balanced Budget Act of 1997 (Public Law 105–

33; 111 Stat. 514), as so amended, shall be applied without regard to paragraph (1).

(3) PERIOD DESCRIBED.—The period described in this paragraph is the period that begins, with respect to a State, on the

first day of the first State fiscal year that begins after September 30, 2002, and ends on the last day of the succeeding

State fiscal year.

(4) APPLICATION TO WAIVERS.—With respect to a State operating under a waiver of the requirements of title XIX of the Social Security Act (42 U.S.C. 1396 et seq.) under section 1115 of

such Act (42 U.S.C. 1315), the amount by which any payment

adjustment made by the State under title XIX of such Act (42

U.S.C. 1396 et seq.), after the application of section 4721(e) of

the Balanced Budget Act of 1997 under paragraph (1) to such

State, exceeds the costs of furnishing hospital services provided

by hospitals described in such section shall be fully reflected as

an increase in the baseline expenditure limit for such waiver.

(d) ASSISTANCE FOR CERTAIN PUBLIC HOSPITALS.—

861

(1) IN GENERAL.—Beginning with fiscal year 2002, notwithstanding section 1923(f) of the Social Security Act (42 U.S.C.

1396r–4(f)) and subject to paragraph (3), with respect to a

State, payment adjustments made under title XIX of the Social

Security Act (42 U.S.C. 1396 et seq.) to a hospital described in

paragraph (2) shall be made without regard to the DSH allotment limitation for the State determined under section 1923(f)

of that Act (42 U.S.C. 1396r–4(f)).

(2) HOSPITAL DESCRIBED.—A hospital is described in this

paragraph if the hospital—

(A) is owned or operated by a State (as defined for purposes of title XIX of the Social Security Act), or by an instrumentality or a unit of government within a State (as so

defined);

(B) as of October 1, 2000—

(i) is in existence and operating as a hospital described in subparagraph (A); and

(ii) is not receiving disproportionate share hospital

payments from the State in which it is located under

title XIX of such Act; and

(C) has a low-income utilization rate (as defined in section 1923(b)(3) of the Social Security Act (42 U.S.C. 1396r–

4(b)(3))) in excess of 65 percent.

(3) LIMITATION ON EXPENDITURES.— (A) IN GENERAL.—With respect to any fiscal year, the

aggregate amount of Federal financial participation that

may be provided for payment adjustments described in

paragraph (1) for that fiscal year for all States may not exceed the amount described in subparagraph (B) for the fiscal year.

(B) AMOUNT DESCRIBED.—The amount described in

this subparagraph for a fiscal year is as follows: (i) For fiscal year 2002, $15,000,000.

(ii) For fiscal year 2003, $176,000,000.

(iii) For fiscal year 2004, $269,000,000.

(iv) For fiscal year 2005, $330,000,000.

(v) For fiscal year 2006 and each fiscal year thereafter, $375,000,000.

(e) DSH PAYMENT ACCOUNTABILITY STANDARDS.—Not later

than September 30, 2002, the Secretary of Health and Human Services shall implement accountability standards to ensure that Federal funds provided with respect to disproportionate share hospital

adjustments made under section 1923 of the Social Security Act (42

U.S.C. 1396r–4) are used to reimburse States and hospitals eligible

for such payment adjustments for providing uncompensated health

care to low-income patients and are otherwise made in accordance

with the requirements of section 1923 of that Act.

SEC. 702. NEW PROSPECTIVE PAYMENT SYSTEM FOR FEDERALLYQUALIFIED 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;

862

(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-QUALI- FIED HEALTH CENTERS AND RURAL HEALTH CLINICS.— ‘‘(1) IN GENERAL.—Beginning with fiscal year 2001 with respect to services furnished on or after January 1, 2001, and

each succeeding fiscal year, the State plan shall provide for

payment for services described in section 1905(a)(2)(C) furnished by a Federally-qualified health center and services described in section 1905(a)(2)(B) furnished by a rural health

clinic in accordance with the provisions of this subsection.

‘‘(2) FISCAL YEAR 2001.—Subject to paragraph (4), for services furnished on and after January 1, 2001, during fiscal year

2001, the State plan shall provide for payment for such services

in an amount (calculated on a per visit basis) that is equal to

100 percent of the average of the costs of the center or clinic of

furnishing such services during fiscal years 1999 and 2000

which are reasonable and related to the cost of furnishing such

services, or based on such other tests of reasonableness as the

Secretary prescribes in regulations under section 1833(a)(3), or,

in the case of services to which such regulations do not apply,

the same methodology used under section 1833(a)(3), adjusted

to take into account any increase or decrease in the scope of

such services furnished by the center or clinic during fiscal year

2001.

‘‘(3) FISCAL YEAR 2002 AND SUCCEEDING FISCAL YEARS.—

Subject to paragraph (4), for services furnished during fiscal

year 2002 or a succeeding fiscal year, the State plan shall provide for payment for such services in an amount (calculated on

a per visit basis) that is equal to the amount calculated for such

services under this subsection for the preceding fiscal year—

‘‘(A) increased by the percentage increase in the MEI

(as defined in section 1842(i)(3)) applicable to primary care

services (as defined in section 1842(i)(4)) for that fiscal

year; and

‘‘(B) adjusted to take into account any increase or decrease in the scope of such services furnished by the center

or clinic during that fiscal year.

‘‘(4) ESTABLISHMENT OF INITIAL YEAR PAYMENT AMOUNT

FOR NEW CENTERS OR CLINICS.—In any case in which an entity

first qualifies as a Federally-qualified health center or rural

health clinic after fiscal year 2000, the State plan shall provide

for payment for services described in section 1905(a)(2)(C) furnished by the center or services described in section

1905(a)(2)(B) furnished by the clinic in the first fiscal year in

which the center or clinic so qualifies in an amount (calculated

863

on a per visit basis) that is equal to 100 percent of the costs of

furnishing such services during such fiscal year based on the

rates established under this subsection for the fiscal year for

other such centers or clinics located in the same or adjacent

area with a similar case load or, in the absence of such a center

or clinic, in accordance with the regulations and methodology

referred to in paragraph (2) or based on such other tests of reasonableness as the Secretary may specify. For each fiscal year

following the fiscal year in which the entity first qualifies as a

Federally-qualified health center or rural health clinic, the

State plan shall provide for the payment amount to be calculated in accordance with paragraph (3).

‘‘(5) ADMINISTRATION IN THE CASE OF MANAGED CARE.—

‘‘(A) IN GENERAL.—In the case of services furnished by

a Federally-qualified health center or rural health clinic

pursuant to a contract between the center or clinic and a

managed care entity (as defined in section 1932(a)(1)(B)),

the State plan shall provide for payment to the center or

clinic by the State of a supplemental payment equal to the

amount (if any) by which the amount determined under

paragraphs (2), (3), and (4) of this subsection exceeds the

amount of the payments provided under the contract.

‘‘(B) PAYMENT SCHEDULE.—The supplemental payment

required under subparagraph (A) shall be made pursuant

to a payment schedule agreed to by the State and the Federally-qualified health center or rural health clinic, but in

no case less frequently than every 4 months.

‘‘(6) ALTERNATIVE PAYMENT METHODOLOGIES.—Notwithstanding any other provision of this section, the State plan may

provide for payment in any fiscal year to a Federally-qualified

health center for services described in section 1905(a)(2)(C) or

to a rural health clinic for services described in section

1905(a)(2)(B) in an amount which is determined under an alternative payment methodology that—

‘‘(A) is agreed to by the State and the center or clinic;

and

‘‘(B) results in payment to the center or clinic of an

amount which is at least equal to the amount otherwise required to be paid to the center or clinic under this section.’’.

(c) CONFORMING AMENDMENTS.—

(1) Section 4712 of the BBA (Public Law 105–33; 111 Stat.

508) is amended by striking subsection (c).

(2) Section 1915(b) (42 U.S.C. 1396n(b)) is amended by

striking ‘‘1902(a)(13)(C)’’ and inserting ‘‘1902(a)(15), 1902(aa),’’.

(d) GAO STUDY OF FUTURE REBASING.—The Comptroller General of the United States shall provide for a study on the need for,

and how to, rebase or refine costs for making payment under the

medicaid program for services provided by Federally-qualified

health centers and rural health clinics (as provided under the

amendments made by this section). The Comptroller General shall

provide for submittal of a report on such study to Congress by not

later than 4 years after the date of the enactment of this Act.

864

(e) EFFECTIVE DATE.—The amendments made by this section

take effect on January 1, 2001, and shall apply to services furnished

on or after such date.

SEC. 703. STREAMLINED APPROVAL OF CONTINUED STATE-WIDE SECTION 1115 MEDICAID WAIVERS.

(a) IN GENERAL.—Section 1115 (42 U.S.C. 1315) is amended by

adding at the end the following new subsection:

‘‘(f) An application by the chief executive officer of a State for

an extension of a waiver project the State is operating under an extension under subsection (e) (in this subsection referred to as the

‘waiver project’) shall be submitted and approved or disapproved in

accordance with the following:

‘‘(1) The application for an extension of the waiver project

shall be submitted to the Secretary at least 120 days prior to

the expiration of the current period of the waiver project.

‘‘(2) Not later than 45 days after the date such application

is received by the Secretary, the Secretary shall notify the State

if the Secretary intends to review the terms and conditions of

the waiver project. A failure to provide such notification shall

be deemed to be an approval of the application.

‘‘(3) Not later than 45 days after the date a notification is

made in accordance with paragraph (2), the Secretary shall inform the State of proposed changes in the terms and conditions

of the waiver project. A failure to provide such information

shall be deemed to be an approval of the application.

‘‘(4) During the 30-day period that begins on the date information described in paragraph (3) is provided to a State, the

Secretary shall negotiate revised terms and conditions of the

waiver project with the State.

‘‘(5)(A) Not later than 120 days after the date an application for an extension of the waiver project is submitted to the

Secretary (or such later date agreed to by the chief executive officer of the State), the Secretary shall—

‘‘(i) approve the application subject to such modifications in the terms and conditions—

‘‘(I) as have been agreed to by the Secretary and

the State; or

‘‘(II) in the absence of such agreement, as are determined by the Secretary to be reasonable, consistent

with the overall objectives of the waiver project, and

not in violation of applicable law; or

‘‘(ii) disapprove the application.

‘‘(B) A failure by the Secretary to approve or disapprove an

application submitted under this subsection in accordance with

the requirements of subparagraph (A) shall be deemed to be an

approval of the application subject to such modifications in the

terms and conditions as have been agreed to (if any) by the Secretary and the State.

‘‘(6) An approval of an application for an extension of a

waiver project under this subsection shall be for a period not

to exceed 3 years.

‘‘(7) An extension of a waiver project under this subsection

shall be subject to the final reporting and evaluation requirements of paragraphs (4) and (5) of subsection (e) (taking into

865

account the extension under this subsection with respect to any

timing requirements imposed under those paragraphs).’’.

(b) EFFECTIVE DATE.—The amendment made by subsection (a)

shall apply to requests for extensions of demonstration projects

pending or submitted on or after the date of the enactment of this

Act.

SEC. 704. MEDICAID COUNTY-ORGANIZED HEALTH SYSTEMS.

(a) IN GENERAL.—Section 9517(c)(3)(C) of the Comprehensive

Omnibus Budget Reconciliation Act of 1985 is amended by striking

‘‘10 percent’’ and inserting ‘‘14 percent’’.

(b) EFFECTIVE DATE.—The amendment made by subsection (a)

takes effect on the date of the enactment of this Act.

SEC. 705. DEADLINE FOR ISSUANCE OF FINAL REGULATION RELATING

TO MEDICAID UPPER PAYMENT LIMITS.

(a) IN GENERAL.—Not later than December 31, 2000, the Secretary of Health and Human Services (in this section referred to as

the ‘‘Secretary’’), notwithstanding any requirement of the Administrative Procedures Act under chapter 5 of title 5, United States

Code, or any other provision of law, shall issue under sections

447.272, 447.304, and 447.321 of title 42, Code of Federal Regulations (and any other section of part 447 of title 42, Code of Federal

Regulations that the Secretary determines is appropriate), a final

regulation based on the proposed rule announced on October 5,

2000, that—

(1) modifies the upper payment limit test applied to State

medicaid spending for inpatient hospital services, outpatient

hospital services, nursing facility services, intermediate care facility services for the mentally retarded, and clinic services by

applying an aggregate upper payment limit to payments made

to government facilities that are not State-owned or operated facilities; and

(2) provides for a transition period in accordance with subsection (b).

(b) TRANSITION PERIOD.—

(1) IN GENERAL.—The final regulation required under subsection (a) shall provide that, with respect to a State described

in paragraph (3), the State shall be considered to be in compliance with the final regulation required under subsection (a) so

long as, for each State fiscal year during the period described

in paragraph (4), the State reduces payments under a State

medicaid plan payment provision or methodology described in

paragraph (3) (including a payment provision or methodology

described in that paragraph that was approved under a waiver

of such plan), or reduces the actual dollar payment levels described in paragraph (3)(B), so that the amount of the payments

that would otherwise have been made under such provision,

methodology, or payment levels by the State for any State fiscal

year during such period is reduced by 15 percent in the first

such State fiscal year, and by an additional 15 percent in each

of the next 5 State fiscal years.

(2) REQUIREMENT.—Notwithstanding paragraph (1), the

final regulation required under subsection (a) shall provide

that, for any period (or portion of a period) that occurs on or

866

after October 1, 2008, medicaid payments made by a State described in paragraph (3) shall comply with such final regulation.

(3) STATE DESCRIBED.—A State described in this paragraph

is a State with a State medicaid plan payment provision or

methodology (including a payment provision or methodology

approved under a waiver of such plan) which—

(A) was approved, deemed to have been approved, or

was in effect on or before October 1, 1992 (including any

subsequent amendments or successor provisions or methodologies and whether or not a State plan amendment was

made to carry out such provision or methodology after such

date) or under which claims for Federal financial participation were filed and paid on or before such date; and

(B) provides for payments that are in excess of the

upper payment limit test established under the final regulation required under subsection (a) (or which would be noncompliant with such final regulation if the actual dollar

payment levels made under the payment provision or methodology in the State fiscal year which begins during 1999

were continued).

(4) PERIOD DESCRIBED.—The period described in this paragraph is the period that begins on the first State fiscal year that

begins after September 30, 2002, and ends on September 30,

2008.

SEC. 706. ALASKA FMAP.

Notwithstanding the first sentence of section 1905(b) of the Social Security Act (42 U.S.C. 1396d(b)), only with respect to each of

fiscal years 2001 through 2005, for purposes of titles XIX and XXI

of the Social Security Act, the State percentage used to determine

the Federal medical assistance percentage for Alaska shall be that

percentage which bears the same ratio to 45 percent as the square

of the adjusted per capita income of Alaska (determined by dividing

the State’s 3-year average per capita income by 1.05) bears to the

square of the per capita income of the 50 States.

SEC. 707. 1-YEAR EXTENSION OF WELFARE-TO-WORK TRANSITION.

(a) IN GENERAL.—Section 1925(f) (42 U.S.C. 1396r–6(f)) is

amended by striking ‘‘2001’’ and inserting ‘‘2002’’.

(b) CONFORMING AMENDMENT.—Section 1902(e)(1)(B) (42

U.S.C. 1396a(e)(1)(B)) is amended by striking ‘‘2001’’ and inserting

‘‘2002’’.

SEC. 708. ADDITIONAL ENTITIES QUALIFIED TO DETERMINE MEDICAID

PRESUMPTIVE ELIGIBILITY FOR LOW-INCOME CHILDREN.

(a) IN GENERAL.—Section 1920A(b)(3)(A)(i) (42 U.S.C. 1396r–

1a(b)(3)(A)(i)) is amended—

(1) by striking ‘‘or (II)’’ and inserting ‘‘, (II)’’; and

(2) by inserting ‘‘eligibility of a child for medical assistance

under the State plan under this title, or eligibility of a child for

child health assistance under the program funded under title

XXI, (III) is an elementary school or secondary school, as such

terms are defined in section 14101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 8801), an elementary

or secondary school operated or supported by the Bureau of InVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00870 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.007 pfrm03 PsN: HR1033
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dian Affairs, a State or tribal child support enforcement agency,

an organization that is providing emergency food and shelter

under a grant under the Stewart B. McKinney Homeless Assistance Act, or a State or tribal office or entity involved in enrollment in the program under this title, under part A of title IV,

under title XXI, or that determines eligibility for any assistance

or benefits provided under any program of public or assisted

housing that receives Federal funds, including the program

under section 8 or any other section of the United States Housing Act of 1937 (42 U.S.C. 1437 et seq.) or under the Native

American Housing Assistance and Self-Determination Act of

1996 (25 U.S.C. 4101 et seq.), or (IV) any other entity the State

so deems, as approved by the Secretary’’ before the semicolon.

(b) TECHNICAL AMENDMENTS.—Section 1920A (42 U.S.C.

1396r–1a) is amended—

(1) in subsection (b)(3)(A)(i), by striking ‘‘42 U.S.C. 9821’’

and inserting ‘‘42 U.S.C. 9831’’;

(2) in subsection (b)(3)(A)(ii), by striking ‘‘paragraph (1)(A)’’

and inserting ‘‘paragraph (2)’’; and

(3) in subsection (c)(2), in the matter preceding subparagraph (A), by striking ‘‘subsection (b)(1)(A)’’ and inserting ‘‘subsection (b)(2)’’.

SEC. 709. DEVELOPMENT OF UNIFORM QMB/SLMB APPLICATION FORM.

(a) IN GENERAL.—Section 1905(p) (42 U.S.C. 1396d(p)) is

amended by adding at the end the following new paragraph:

‘‘(5)(A) The Secretary shall develop and distribute to States a

simplified application form for use by individuals (including both

qualified medicare beneficiaries and specified low-income medicare

beneficiaries) in applying for medical assistance for medicare costsharing 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).

868

(2) The amendment made by subsection (a)(2) shall be effective

as if included in the enactment of the Breast and Cervical Cancer

Prevention and Treatment Act of 2000 (Public Law 106–354).

TITLE VIII—STATE CHILDREN’S HEALTH INSURANCE

PROGRAM

SEC. 801. SPECIAL RULE FOR REDISTRIBUTION AND AVAILABILITY OF

UNUSED FISCAL YEAR 1998 AND 1999 SCHIP ALLOTMENTS.

(a) CHANGE IN RULES FOR REDISTRIBUTION AND RETENTION OF

UNUSED SCHIP ALLOTMENTS FOR FISCAL YEARS 1998 AND 1999.—

Section 2104 (42 U.S.C. 1397dd) is amended by adding at the end

the following new subsection:

‘‘(g) RULE FOR REDISTRIBUTION AND EXTENDED AVAILABILITY

OF FISCAL YEARS 1998 AND 1999 ALLOTMENTS.—

‘‘(1) AMOUNT REDISTRIBUTED.—

‘‘(A) IN GENERAL.—In the case of a State that expends

all of its allotment under subsection (b) or (c) for fiscal year

1998 by the end of fiscal year 2000, or for fiscal year 1999

by the end of fiscal year 2001, the Secretary shall redistribute to the State under subsection (f) (from the fiscal

year 1998 or 1999 allotments of other States, respectively,

as determined by the application of paragraphs (2) and (3)

with respect to the respective fiscal year) the following

amount:

‘‘(i) STATE.—In the case of 1 of the 50 States or the

District of Columbia, with respect to—

‘‘(I) the fiscal year 1998 allotment, the amount

by which the State’s expenditures under this title

in fiscal years 1998, 1999, and 2000 exceed the

State’s allotment for fiscal year 1998 under subsection (b); or

‘‘(II) the fiscal year 1999 allotment, the

amount by which the State’s expenditures under

this title in fiscal years 1999, 2000, and 2001 exceed the State’s allotment for fiscal year 1999

under subsection (b).

‘‘(ii) TERRITORY.—In the case of a commonwealth

or territory described in subsection (c)(3), an amount

that bears the same ratio to 1.05 percent of the total

amount described in paragraph (2)(B)(i)(I) as the ratio

of the commonwealth’s or territory’s fiscal year 1998 or

1999 allotment under subsection (c) (as the case may

be) bears to the total of all such allotments for such fiscal year under such subsection.

‘‘(B) EXPENDITURE RULES.—An amount redistributed to

a State under this paragraph with respect to fiscal year

1998 or 1999—

‘‘(i) shall not be included in the determination of

the State’s allotment for any fiscal year under this section;

‘‘(ii) notwithstanding subsection (e), shall remain

available for expenditure by the State through the end

of fiscal year 2002; and

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‘‘(iii) shall be counted as being expended with respect to a fiscal year allotment in accordance with applicable regulations of the Secretary.

‘‘(2) EXTENSION OF AVAILABILITY OF PORTION OF UNEXPENDED FISCAL YEARS 1998 AND 1999 ALLOTMENTS.—

‘‘(A) IN GENERAL.—Notwithstanding subsection (e):

‘‘(i) FISCAL YEAR 1998 ALLOTMENT.—Of the amounts

allotted to a State pursuant to this section for fiscal

year 1998 that were not expended by the State by the

end of fiscal year 2000, the amount specified in subparagraph (B) for fiscal year 1998 for such State shall

remain available for expenditure by the State through

the end of fiscal year 2002.

‘‘(ii) FISCAL YEAR 1999 ALLOTMENT.—Of the

amounts allotted to a State pursuant to this subsection

for fiscal year 1999 that were not expended by the State

by the end of fiscal year 2001, the amount specified in

subparagraph (B) for fiscal year 1999 for such State

shall remain available for expenditure by the State

through the end of fiscal year 2002.

‘‘(B) AMOUNT REMAINING AVAILABLE FOR EXPENDITURE.—The amount specified in this subparagraph for a

State for a fiscal year is equal to—

‘‘(i) the amount by which (I) the total amount

available for redistribution under subsection (f) from

the allotments for that fiscal year, exceeds (II) the total

amounts redistributed under paragraph (1) for that fiscal year; multiplied by

‘‘(ii) the ratio of the amount of such State’s unexpended allotment for that fiscal year to the total

amount described in clause (i)(I) for that fiscal year.

‘‘(C) USE OF UP TO 10 PERCENT OF RETAINED 1998 ALLOTMENTS FOR OUTREACH ACTIVITIES.—Notwithstanding

section 2105(c)(2)(A), with respect to any State described in

subparagraph (A)(i), the State may use up to 10 percent of

the amount specified in subparagraph (B) for fiscal year

1998 for expenditures for outreach activities approved by

the Secretary.

‘‘(3) DETERMINATION OF AMOUNTS.—For purposes of calculating the amounts described in paragraphs (1) and (2) relating

to the allotment for fiscal year 1998 or fiscal year 1999, the Secretary shall use the amounts reported by the States not later

than December 15, 2000, or November 30, 2001, respectively, on

HCFA Form 64 or HCFA Form 21, as approved by the Secretary.’’.

(b) EFFECTIVE DATE.—The amendments made by this section

shall take effect as if included in the enactment of section 4901 of

BBA (111 Stat. 552).

SEC. 802. AUTHORITY TO PAY MEDICAID EXPANSION SCHIP COSTS

FROM TITLE XXI APPROPRIATION.

(a) AUTHORITY TO PAY MEDICAID EXPANSION SCHIP COSTS

FROM TITLE XXI APPROPRIATION.—Section 2105(a) (42 U.S.C.

1397ee(a)) is amended—

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(1) by redesignating subparagraphs (A) through (D) of

paragraph (2) as clauses (i) through (iv), respectively, and indenting appropriately;

(2) by redesignating paragraph (1) as subparagraph (C),

and indenting appropriately;

(3) by redesignating paragraph (2) as subparagraph (D),

and indenting appropriately;

(4) by striking ‘‘(a) IN GENERAL.—’’ and the remainder of

the text that precedes subparagraph (C), as so redesignated,

and inserting the following:

‘‘(a) PAYMENTS.— ‘‘(1) IN GENERAL.—Subject to the succeeding provisions of

this section, the Secretary shall pay to each State with a plan

approved under this title, from its allotment under section 2104,

an amount for each quarter equal to the enhanced FMAP (or,

in the case of expenditures described in subparagraph (B), the

Federal medical assistance percentage (as defined in the first

sentence of section 1905(b))) of expenditures in the quarter—

‘‘(A) for child health assistance under the plan for targeted low-income children in the form of providing medical

assistance for which payment is made on the basis of an

enhanced FMAP under the fourth sentence of section

1905(b);

‘‘(B) for the provision of medical assistance on behalf of

a child during a presumptive eligibility period under section 1920A;’’; and

(5) by adding after subparagraph (D), as so redesignated,

the following new paragraph:

‘‘(2) ORDER OF PAYMENTS.—Payments under paragraph (1)

from a State’s allotment shall be made in the following order:

‘‘(A) First, for expenditures for items described in paragraph (1)(A).

‘‘(B) Second, for expenditures for items described in

paragraph (1)(B).

‘‘(C) Third, for expenditures for items described in

paragraph (1)(C).

‘‘(D) Fourth, for expenditures for items described in

paragraph (1)(D).’’.

(b) ELIMINATION OF REQUIREMENT TO REDUCE TITLE XXI ALLOTMENT BY MEDICAID EXPANSION SCHIP COSTS.—Section 2104

(42 U.S.C. 1397dd) is amended by striking subsection (d).

(c) AUTHORITY TO TRANSFER TITLE XXI APPROPRIATIONS TO

TITLE XIX APPROPRIATION ACCOUNT AS REIMBURSEMENT FOR MEDICAID EXPENDITURES FOR MEDICAID EXPANSION SCHIP SERVICES.—

Notwithstanding any other provision of law, all amounts appropriated under title XXI and allotted to a State pursuant to subsection (b) or (c) of section 2104 of the Social Security Act (42 U.S.C.

1397dd) for fiscal years 1998 through 2000 (including any amounts

that, but for this provision, would be considered to have expired)

and not expended in providing child health assistance or related

services for which payment may be made pursuant to subparagraph

(C) or (D) of section 2105(a)(1) of such Act (42 U.S.C. 1397ee(a)(1))

(as amended by subsection (a)), shall be available to reimburse the

Grants to States for Medicaid account in an amount equal to the

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total payments made to such State under section 1903(a) of such Act

(42 U.S.C. 1396b(a)) for expenditures in such years for medical assistance described in subparagraphs (A) and (B) of section

2105(a)(1) of such Act (42 U.S.C. 1397ee(a)(1)) (as so amended).

(d) CONFORMING AMENDMENTS.—

(1) Section 1905(b) (42 U.S.C. 1396d(b)) is amended in the

fourth sentence by striking ‘‘the State’s allotment under section

2104 (not taking into account reductions under section

2104(d)(2)) for the fiscal year reduced by the amount of any

payments made under section 2105 to the State from such allotment for such fiscal year’’ and inserting ‘‘the State’s available

allotment under section 2104’’.

(2) Section 1905(u)(1)(B) (42 U.S.C. 1396d(u)(1)(B)) is

amended by striking ‘‘and section 2104(d)’’.

(3) Section 2104 (42 U.S.C. 1397dd), as amended by subsection (b), is further amended—

(A) in subsection (b)(1), by striking ‘‘and subsection

(d)’’; and

(B) in subsection (c)(1), by striking ‘‘subject to subsection (d),’’.

(4) Section 2105(c) (42 U.S.C. 1397ee(c)) is amended—

(A) in paragraph (2)(A), by striking all that follows

‘‘Except as provided in this paragraph,’’ and inserting ‘‘the

amount of payment that may be made under subsection (a)

for a fiscal year for expenditures for items described in

paragraph (1)(D) of such subsection shall not exceed 10 percent of the total amount of expenditures for which payment

is made under subparagraphs (A), (C), and (D) of paragraph (1) of such subsection.’’;

(B) in paragraph (2)(B), by striking ‘‘described in subsection (a)(2)’’ and inserting ‘‘described in subsection

(a)(1)(D)’’; and

(C) in paragraph (6)(B), by striking ‘‘Except as otherwise provided by law,’’ and inserting ‘‘Except as provided

in subparagraph (A) or (B) of subsection (a)(1) or any other

provision of law,’’.

(5) Section 2110(a) (42 U.S.C. 1397jj(a)) is amended by

striking ‘‘section 2105(a)(2)(A)’’ and inserting ‘‘section

2105(a)(1)(D)(i)’’.

(e) TECHNICAL AMENDMENT.—Section 2105(d)(2)(B)(ii) (42

U.S.C. 1397ee(d)(2)(B)(ii)) is amended by striking ‘‘enhanced FMAP

under section 1905(u)’’ and inserting ‘‘enhanced FMAP under the

fourth sentence of section 1905(b)’’.

(f) EFFECTIVE DATE.—The amendments made by this section

shall be effective as if included in the enactment of section 4901 of

the BBA (111 Stat. 552).

SEC. 803. APPLICATION OF MEDICAID CHILD PRESUMPTIVE ELIGIBILITY PROVISIONS.

Section 2107(e)(1) (42 U.S.C. 1397gg(e)(1)) is amended by adding at the end the following new subparagraph:

‘‘(D) Section 1920A (relating to presumptive eligibility

for children).’’.

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TITLE IX—OTHER PROVISIONS

Subtitle A—PACE Program

SEC. 901. EXTENSION OF TRANSITION FOR CURRENT WAIVERS.

Section 4803(d)(2) of BBA is amended—

(1) in subparagraph (A), by striking ‘‘24 months’’ and inserting ‘‘36 months’’;

(2) in subparagraph (A), by striking ‘‘the initial effective

date of regulations described in subsection (a)’’ and inserting

‘‘July 1, 2000’’; and

(3) in subparagraph (B), by striking ‘‘3 years’’ and inserting

‘‘4 years’’.

SEC. 902. CONTINUING OF CERTAIN OPERATING ARRANGEMENTS PERMITTED.

(a) IN GENERAL.—Section 1894(f)(2) (42 U.S.C. 1395eee(f)(2)) is

amended by adding at the end the following new subparagraph:

‘‘(C) CONTINUATION OF MODIFICATIONS OR WAIVERS OF

OPERATIONAL REQUIREMENTS UNDER DEMONSTRATION STATUS.—If a PACE program operating under demonstration

authority has contractual or other operating arrangements

which are not otherwise recognized in regulation and which

were in effect on July 1, 2000, the Secretary (in close consultation with, and with the concurrence of, the State administering agency) shall permit any such program to continue such arrangements so long as such arrangements are

found by the Secretary and the State to be reasonably consistent with the objectives of the PACE program.’’.

(b) CONFORMING AMENDMENT.—Section 1934(f)(2) (42 U.S.C.

1396u–4(f)(2)) is amended by adding at the end the following new

subparagraph:

‘‘(C) CONTINUATION OF MODIFICATIONS OR WAIVERS OF

OPERATIONAL REQUIREMENTS UNDER DEMONSTRATION STATUS.—If a PACE program operating under demonstration

authority has contractual or other operating arrangements

which are not otherwise recognized in regulation and which

were in effect on July 1, 2000, the Secretary (in close consultation with, and with the concurrence of, the State administering agency) shall permit any such program to continue such arrangements so long as such arrangements are

found by the Secretary and the State to be reasonably consistent with the objectives of the PACE program.’’.

(c) EFFECTIVE DATE.—The amendments made by this section

shall be effective as included in the enactment of BBA.

SEC. 903. FLEXIBILITY IN EXERCISING WAIVER AUTHORITY.

In applying sections 1894(f)(2)(B) and 1934(f)(2)(B) of the Social Security Act (42 U.S.C. 1395eee(f)(2)(B), 1396u–4(f)(2)(B)), the

Secretary of Health and Human Services—

(1) shall approve or deny a request for a modification or a

waiver of provisions of the PACE protocol not later than 90

days after the date the Secretary receives the request; and

(2) may exercise authority to modify or waive such provisions in a manner that responds promptly to the needs of PACE

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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 costsharing under the medicaid program pursuant to sections

1902(a)(10)(E) and 1933; and

‘‘(B) notify such individuals of the availability of such

medical assistance under such sections.

‘‘(2) CONTENT OF NOTICE.—Any notice furnished under

paragraph (1) shall state that eligibility for medicare cost-sharing assistance under such sections is conditioned upon—

‘‘(A) the individual providing to the State information

about income and resources (in the case of an individual

residing in a State that imposes an assets test for such eligibility); and

‘‘(B) meeting the applicable eligibility criteria.

‘‘(b) COORDINATION WITH STATES.—

‘‘(1) IN GENERAL.—In conducting the outreach efforts under

this section, the Commissioner shall—

‘‘(A) furnish the agency of each State responsible for the

administration of the medicaid program and any other appropriate State agency with information consisting of the

name and address of individuals residing in the State that

the Commissioner determines may be eligible for medical

assistance for payment of the cost of medicare cost-sharing

under the medicaid program pursuant to sections

1902(a)(10)(E) and 1933; and

‘‘(B) update any such information not less frequently

than once per year.

‘‘(2) INFORMATION IN PERIODIC UPDATES.—The periodic updates described in paragraph (1)(B) shall include information

on individuals who are or may be eligible for the medical assistance described in paragraph (1)(A) because such individuals

have experienced reductions in benefits under title II.’’.

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(2) AMENDMENT TO TITLE XIX.—Section 1905(p) (42 U.S.C.

1396d(p)), as amended by section 710(a), is amended by adding

at the end the following new paragraph:

‘‘(6) For provisions relating to outreach efforts to increase

awareness of the availability of medicare cost-sharing, see section

1144.’’.

(b) GAO REPORT.—The Comptroller General of the United

States shall conduct a study of the impact of section 1144 of the Social Security Act (as added by subsection (a)(1)) on the enrollment

of individuals for medicare cost-sharing under the medicaid program. Not later than 18 months after the date that the Commissioner of Social Security first conducts outreach under section 1144

of such Act, the Comptroller General shall submit to Congress a report on such study. The report shall include such recommendations

for legislative changes as the Comptroller General deems appropriate.

(c) EFFECTIVE DATE.—The amendments made by subsection (a)

shall take effect one year after the date of the enactment of this Act.

Subtitle C—Maternal and Child Health Block Grant

SEC. 921. INCREASE IN AUTHORIZATION OF APPROPRIATIONS FOR

THE MATERNAL AND CHILD HEALTH SERVICES BLOCK

GRANT.

(a) IN GENERAL.—Section 501(a) (42 U.S.C. 701(a)) is amended

in the matter preceding paragraph (1) by striking ‘‘$705,000,000 for

fiscal year 1994’’ and inserting ‘‘$850,000,000 for fiscal year 2001’’.

(b) EFFECTIVE DATE.—The amendment made by subsection (a)

takes effect on October 1, 2000.

Subtitle D—Diabetes

SEC. 931. INCREASE IN APPROPRIATIONS FOR SPECIAL DIABETES

PROGRAMS FOR TYPE I DIABETES AND INDIANS.

(a) SPECIAL DIABETES PROGRAMS FOR TYPE I DIABETES.—Section 330B(b) of the Public Health Service Act (42 U.S.C. 254c–2(b))

is amended—

(1) by striking ‘‘Notwithstanding’’ and inserting the following:

‘‘(1) TRANSFERRED FUNDS.—Notwithstanding’’; and

(2) by adding at the end the following:

‘‘(2) APPROPRIATIONS.—For the purpose of making grants

under this section, there is appropriated, out of any funds in the

Treasury not otherwise appropriated—

‘‘(A) $70,000,000 for each of fiscal years 2001 and 2002

(which shall be combined with amounts transferred under

paragraph (1) for each such fiscal years); and

‘‘(B) $100,000,000 for fiscal year 2003.’’.

(b) SPECIAL DIABETES PROGRAMS FOR INDIANS.—Section

330C(c) of such Act (42 U.S.C. 254c–3(c)) is amended—

(1) by striking ‘‘Notwithstanding’’ and inserting the following:

‘‘(1) TRANSFERRED FUNDS.—Notwithstanding’’; and

(2) by adding at the end the following:

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‘‘(2) APPROPRIATIONS.—For the purpose of making grants

under this section, there is appropriated, out of any money in

the Treasury not otherwise appropriated—

‘‘(A) $70,000,000 for each of fiscal years 2001 and 2002

(which shall be combined with amounts transferred under

paragraph (1) for each such fiscal years); and

‘‘(B) $100,000,000 for fiscal year 2003.’’.

(c) EXTENSION OF FINAL REPORT ON GRANT PROGRAMS.—Section 4923(b)(2) of BBA is amended by striking ‘‘2002’’ and inserting

‘‘2003’’.

SEC. 932. APPROPRIATIONS FOR RICKY RAY HEMOPHILIA RELIEF

FUND.

Section 101(e) of the Ricky Ray Hemophilia Relief Fund Act of

1998 (42 U.S.C. 300c–22 note) is amended by adding at the end the

following: ‘‘There is appropriated to the Fund $475,000,000 for fiscal year 2001, to remain available until expended.’’.

Subtitle E—Information on Nurse Staffing

SEC. 941. POSTING OF INFORMATION ON NURSING FACILITY STAFFING.

(a) MEDICARE.—Section 1819(b) (42 U.S.C. 1395i–3(b)) is

amended by adding at the end the following new paragraph:

‘‘(8) INFORMATION ON NURSE STAFFING.—

‘‘(A) IN GENERAL.—A skilled nursing facility shall post

daily for each shift the current number of licensed and unlicensed nursing staff directly responsible for resident care

in the facility. The information shall be displayed in a uniform manner (as specified by the Secretary) and in a clearly visible place.

‘‘(B) PUBLICATION OF DATA.—A skilled nursing facility

shall, upon request, make available to the public the nursing staff data described in subparagraph (A).’’.

(b) MEDICAID.—Section 1919(b) (42 U.S.C. 1395r(b)) is amended by adding at the end the following new paragraph:

‘‘(8) INFORMATION ON NURSE STAFFING.—

‘‘(A) IN GENERAL.—A nursing facility shall post daily

for each shift the current number of licensed and unlicensed nursing staff directly responsible for resident care in

the facility. The information shall be displayed in a uniform manner (as specified by the Secretary) and in a clearly visible place.

‘‘(B) PUBLICATION OF DATA.—A nursing facility shall,

upon request, make available to the public the nursing staff

data described in subparagraph (A).’’.

(c) EFFECTIVE DATE.—The amendments made by this section

shall take effect on January 1, 2003.

Subtitle F—Adjustment of Multiemployer Plan Benefits

Guaranteed

SEC. 951. MULTIEMPLOYER PLAN BENEFITS GUARANTEED.

(a) IN GENERAL.—Section 4022A(c) of the Employee Retirement

Income Security Act of 1974 (29 U.S.C. 1322a(c)) is amended—

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(1) by striking ‘‘$5’’ each place it appears in paragraph (1)

and inserting ‘‘$11’’;

(2) by striking ‘‘$15’’ in paragraph (1)(A)(i) and inserting

‘‘$33’’; and

(3) by striking paragraphs (2), (5), and (6) and by redesignating paragraphs (3) and (4) as paragraphs (2) and (3), respectively.

(b) EFFECTIVE DATE.—The amendments made by this section

shall apply to any multiemployer plan that has not received financial assistance (within the meaning of section 4261 of the Employee

Retirement Income Security Act of 1974) within the 1-year period

ending on the date of the enactment of this Act.

MEDICARE, MEDICAID, AND SCHIP BENEFITS

IMPROVEMENT AND PROTECTION ACT OF 2000

Following is explanatory language on H.R. 5661, as introduced

on December 14, 2000. The conferees on H.R. 4577 agree with the

matter included in H.R. 5661 and enacted in this conference report

by reference and the following description of it.

TITLE I—MEDICARE BENEFICIARY IMPROVEMENTS

SUBTITLE A—IMPROVED PREVENTIVE BENEFITS

Section 101. Coverage of biennial screening pap smear and pelvic

exams

The provision modifies current law to provide Medicare coverage for biennial screening pap smears and pelvic exams, effective

July 1, 2001.

Section 102. Coverage of screening for glaucoma

The provision would add Medicare coverage for annual glaucoma screenings, beginning January 1, 2002, for persons determined to be at high risk for glaucoma, individuals with a family

history of glaucoma, and individuals with diabetes. The service

would have to be furnished by or under the supervision of an optometrist or ophthalmologist who is legally authorized to perform

such services in the state where the services are furnished.

Section 103. Coverage of screening colonoscopy for average risk individuals

The provision would authorize coverage for screening

colonoscopies, beginning July 1, 2001, for all individuals, not just

those at high risk. For persons not at high risk, payments could not

be made for such procedures if performed within 10 years of a previous screening colonoscopy or within 4 years of a screening flexible

sigmoidoscopy.

Section 104. Modernization of screening mammography benefit

Beginning in 2002, the provision would eliminate the statutorily prescribed payment rate for screening mammography payments and specify that the services are to be paid under the physician fee schedule. The provision would specify two new payment

rates for mammographies that utilize advanced new technology for

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the period April 1, 2001, to December 31, 2001. Payment for technologies that directly take digital images would equal 150% of what

would otherwise be paid for a bilateral diagnostic mammography.

For technologies that convert standard film images to digital form,

an additional payment of fifteen dollars would be authorized. The

Secretary would be required to determine whether a new code is

required for tests furnished after 2001.

Section 105. Coverage of medical nutrition therapy services for beneficiaries within diabetes or a renal disease

The provision would establish, effective January 1, 2002, Medicare coverage for medical nutrition therapy services for beneficiaries who have diabetes or a renal disease. Medical nutrition

therapy services would be defined as nutritional diagnostic, therapy and counseling services for the purpose of disease management

which are furnished by a registered dietician or nutrition professional, pursuant to a referral by a physician. The provision would

specify that the amount paid for medical nutrition therapy services

would equal the lesser of the actual charge for the service or 85%

of the amount that would be paid under the physician fee schedule

if such services were provided by a physician. Assignment would be

required for all claims. The Secretary would be required to submit

a report to Congress that contains an evaluation of the effectiveness of services furnished under this provision.

SUBTITLE B—OTHER BENEFICIARY IMPROVEMENTS

Section 111. Acceleration of reduction of beneficiary copayment for

hospital outpatient department services

Effective April 1, 2001, the provision would modify current law

by limiting the amount of a beneficiary’s copayment for a procedure

in a hospital outpatient department to the hospital inpatient deductible applicable in that year.

In addition, starting in April, 2001, the provision would require

the Secretary of HHS to reduce the effective copayment rate for

outpatient services to a maximum rate of 57% for the remainder

of 2001, 55% in 2002 and 2003, 50% in 2004, 45% in 2005, and 40%

in 2006 and subsequent years. As stated in BBA 97, hospitals may

waive any increase in coinsurance that may have arisen from the

implementation of the outpatient prospective payment system

(PPS).

The Comptroller General would be required to work with the

National Association of Insurance Commissioners (NAIC) to evaluate the extent to which premiums for supplemental policies reflect

the acceleration of the reduction in beneficiary coinsurance of hospital outpatient services and result in savings to beneficiaries and

to report to the Congress by April 1, 2004.

Section 112. Preservation of coverage of drugs and biologicals under

part B of the Medicare Program

The provision would clarify policy with regard to coverage of

drugs, provided incident to physicians services, that cannot be selfadministered. The provision would specify that such drugs are covered when they are not usually self-administered by the patient.

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Section 113. Elimination of time limitation on Medicare benefits for

immunosuppressive drugs

The provision would eliminate the current time limitations on

the coverage of immunosuppressive drugs for beneficiaries would

have received a covered organ transplant. The provision would

apply to drugs furnished, on or after the date enactment.

Section 114. Imposition of billings limits on drugs

The provision would specify that payment for drugs under Part

B must be made on the basis of assignment.

Section 115. Waiver of 24-month waiting period for Medicare coverage of individuals disabled with amyotrophic lateral sclerosis

(ALS)

The provision would waive the 24-month waiting period (otherwise required for an individual to establish Medicare eligibility on

the basis of a disability) for persons medically determined to have

amyotrophic lateral sclerosis (ALS). The provision would be effective July 1, 2001.

SUBTITLE C—DEMONSTRATION PROJECTS AND STUDIES

Section 121. Demonstration project for disease management for severely chronically ill Medicare beneficiaries

The Secretary would be required to conduct a demonstration

project to illustrate the impact on costs and health outcomes of applying disease management to Medicare beneficiaries with diagnosed, advanced-stage congestive heart failure, diabetes, or coronary heart disease. Up to 30,000 beneficiaries would be able to enroll, on a voluntary basis, for disease management services related

to their chronic health condition. In addition, contractors providing

disease management services would be responsible for providing

beneficiaries enrolled in the project with prescription drugs.

Section 122. Cancer prevention and treatment demonstration for

ethnic and racial minorities

The provision would require the Secretary to conduct demonstration projects for the purpose of developing models and evaluating methods that improve the quality of cancer prevention services, improve clinical outcomes, eliminates disparities in the rate of

preventive screening measures, with promote collaboration with

community-based organizations for ethnic and racial minorities.

Section 123. Study on Medicare coverage of routine thyroid screening

The provision would require the Secretary to request the National Academy of Sciences, and as appropriate in conjunction with

the United States Preventive Services Task Force, to analyze the

addition of routine thyroid screening under Medicare. The analysis

would consider the short term and long term benefits, and cost to

Medicare, of adding such coverage for some or all beneficiaries.

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Section 124. MedPAC study on consumer coalitions

The provision would require MedPAC to conduct a study that

examines the use of consumer coalitions in the marketing of

Medicare+Choice plans. A consumer coalition would be defined as

a non-profit community-based organization that provides information to beneficiaries about their health options under Medicare and

negotiates with Medicare+Choice plans on benefits and premiums

for beneficiaries who are members of the coalition or otherwise affiliated with it.

Section 125. Study on limitation on State payment for Medicare

cost-sharing affecting access to services for qualified Medicare

beneficiaries

The provision would require the Secretary of HHS to conduct

a study to determine if access to certain services (including mental

health services) has been affected by a specific provision in law.

The provision specifies that states are not required to pay Medicare

cost-sharing charges for QMBs to the extent these payments would

result in a total payment in excess of the Medicaid level.

Section 126. Studies on preventive interventions in primary care for

older Americans

The provision would require the Secretary, acting through the

United States Preventive Services Task Force, to conduct a series

of studies designed to identify preventive interventions in primary

care for older Americans.

Section 127. MedPAC study and report on Medicare coverage of cardiac and pulmonary rehabilitation and therapy services

The provision would require MedPAC to conduct a study on

coverage of cardiac and pulmonary rehabilitation therapy services

under Medicare.

Section 128. Lifestyle modification program demonstration

The provision modifies the current medicare demonstration

project, known as the Lifestyle Modification Program. It would extend the project to 4 years and to assure 1,800 beneficiaries complete the Program in order to provide a statistically valid sample.

The provision requires a study of its cost-effectiveness and provides

for an initial report after 900 beneficiaries complete the Program

and a final report after 1,800 beneficiaries complete the Program.

TITLE II—RURAL HEALTH CARE IMPROVEMENTS

SUBTITLE A—CRITICAL ACCESS HOSPITAL PROVISIONS

Section 201. Clarification of no beneficiary cost-sharing for clinical

diagnostic laboratory tests furnished by critical access hospitals

Effective for services furnished on or after the enactment of

BBRA99, Medicare beneficiaries would not be liable for any coinsurance, deductible, copayment, or other cost sharing amount with

respect to clinical diagnostic laboratory services furnished as an

outpatient critical access hospital (CAH) service. Conforming

changes that clarify that CAHs are reimbursed on a reasonable

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cost basis for outpatient clinical diagnostic laboratory services are

also included.

Section 202. Assistance with fee schedule payment for professional

services under all-inclusive rate

Effective for items and services furnished on or after July 1,

2001, Medicare would pay a CAH for outpatient services based on

reasonable costs or, at the election of an entity, would pay the CAH

a facility fee based on reasonable costs plus an amount based on

115% of Medicare’s fee schedule for professional services.

Section 203. Exemption of critical access hospital swing beds from

SNF PPS

Swing beds in critical access hospitals (CAHs) would be exempt

from the SNF prospective payment system. CAHs would be paid for

covered SNF services on a reasonable cost basis.

Section 204. Payment in critical access hospitals for emergency

room on-call physicians

When determining the allowable, reasonable cost of outpatient

CAH services, the Secretary would recognize amounts for the compensation and related costs for on-call emergency room physicians

who are not present on the premises, are not otherwise furnishing

services, and are not on-call at any other provider or facility. The

Secretary would define the reasonable payment amounts and the

meaning of the term ‘‘on-call.’’ The provision would be effective for

cost reporting periods beginning on or after October 1, 2001.

Section 205. Treatment of ambulance services furnished by certain

critical access hospitals

Ambulance services provided by a critical access hospital

(CAH) or provided by an entity that is owned or operated by a CAH

would be paid on a reasonable cost basis if the CAH or entity is

the only provider or supplier of ambulance services that is located

within a 35-mile drive of the CAH. The provision would be effective

for services furnished on or after enactment.

Section 206. GAO study on certain eligibility requirements for critical access hospitals

Within one year of enactment, GAO would be required to conduct a study on the eligibility requirements for critical access hospitals (CAHs) with respect to limitations on average length of stay

and number of beds, including an analysis of the feasibility of having a distinct part unit as part of a CAH and the effect of seasonal

variations in CAH eligibility requirements. GAO also would be required to analyze the effect of seasonal variations in patient admissions on critical access hospital eligibility requirements with respect to limits on average annual length of stay and number of

beds.

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SUBTITLE B—OTHER RURAL HOSPITALS PROVISIONS

Section 211. Treatment of rural disproportionate share hospitals

For discharges occurring on or after April 1, 2001, all hospitals

would be eligible to receive DSH payments when their DSH percentage (threshold amount) exceeds 15%. The DSH payment formulas for sole community hospitals (SCHs), rural referral centers

(RRCs), rural hospitals that are both SCHs and RRCs, small rural

hospitals and urban hospitals with less than 100 beds would be

modified.

Section 212. Option to base eligibility for Medicare dependent, small

rural hospital program on discharges during 2 of the 3 most recent audited cost reporting periods

An otherwise qualifying small rural hospital would be able to

be classified as an MDH if at least 60% of its days or discharges

were attributable to Medicare Part A beneficiaries in at least two

of the three most recent audited cost reporting periods for which

the Secretary has a settled cost report.

Section 213. Extension of option to use rebased target amounts to

all sole community hospitals

Any SCH would be able to elect payment based on hospital

specific, updated FY1996 costs if this target amount resulted in

higher Medicare payments. There would be a transition period with

Medicare payment based completely on updated FY1996 hospital

specific costs for discharges occurring after FY2003.

Section 214. MedPAC analysis of impact of volume on per unit cost

of rural hospitals with psychiatric units

MedPAC would be required to report on the impact of volume

on the per unit cost of rural hospitals with psychiatric units and

include in its report a recommendation on whether special treatment is warranted.

SUBTITLE C—OTHER RURAL PROVISIONS

Section 221. Assistance for providers of ambulance services in rural

areas

The provision would make additional payments to providers of

ground ambulance services for trips, originating in rural areas,

that are greater than 17 miles and up to 50 miles. The payments

would be made for services furnished on or after July 1, 2001 and

before January 1, 2004. The provision would require the Comptroller General to conduct a study to examine both the costs of efficiently providing ambulance services for trips originating in rural

areas and the means by which rural areas with low population densities can be identified for the purpose of designating areas in

which the costs of ambulance services would be expected to be

higher. The Comptroller General would submit a report to Congress by June 30, 2002 on the results of the study, together with

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retary would be required to take these findings into account when

establishing the fee schedule, beginning with 2004.

Section 222. Payment for certain physician assistant services

This provision would give permanent authority to physician assistants who owned rural health clinics that lost their designation

as such to bill Medicare directly.

Section 223. Expansion of Medicare payment for telehealth services

The provision would establish revised payment provisions, effective no later than October 1, 2001, for services that are provided

via a telecommunications system by a physician or practitioner to

an eligible beneficiary in a rural area. The Secretary would be required to make payments for telehealth services to the physician

or practitioner at the distant site in an amount equal to the

amount that would have been paid to such physician or practitioner if the service had been furnished to the beneficiary without

the use of a telecommunications system. A facility fee would be

paid to the originating site. Originating sites would include a physician or practitioner office, a critical access hospital, a rural health

clinic, a Federally qualified health center or a hospital. The Secretary would be required to conduct a study, and submit recommendations to Congress, that identify additional settings, sites,

practitioners and geographic areas that would be appropriate for

telehealth services. Entities participating in Federal demonstration

projects approved by, or receiving funding from, the Secretary as

of December 31, 2000 would be qualified sites.

Section 224. Expanding access to rural health clinics

All hospitals of less than 50 beds that own rural health clinics

would be exempt from the per visit limit.

Section 225. MedPAC study on low-volume, isolated rural health

providers

MedPAC would be required to study the effect of low patient

and procedure volume on the financial status and Medicare payment methods for hospital outpatient services, ambulance services,

hospital inpatient services, skilled nursing facility services, and

home health services in isolated rural health care providers.

TITLE III—PROVISIONS RELATING TO PART A

SUBTITLE A—INPATIENT HOSPITAL SERVICES

Section 301. Revision of acute care hospital payment update for

2001

All hospitals would receive the full market basket index (MBI)

as an update for FY2001. In order to implement this increase for

hospitals other than sole community hospitals (SCH), those hospitals would receive the MBI minus 1.1 percentage points (the current statutory provision) for discharges occurring on or after October 1, 2000 and before April 1, 2001; these non-SCH hospitals

would receive the MBI plus 1.1 percentage points for discharges occurring on or after April 1, 2001 and before October 1, 2001. As indicated by section 547(a), this payment increase would not apply to

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discharges occurring after FY2001. For FY2002 and FY2003, hospitals would receive the MBI minus .55 percentage points. For

FY2004 and subsequently, hospitals would receive the MBI.

The Secretary is directed to consider the prices of blood and

blood products purchased by hospitals in the next rebasing and revision of the hospital market basket to determine whether those

prices are adequately reflected in the market basket index.

MedPAC is directed to conduct a study on increased hospital costs

attributable to complying with new blood safety measures and providing such services using new technologies among other issues.

For discharges occurring on or after October 1, 2001, the Secretary would be able to adjust the standardized amount in future

fiscal years to correct for changes in the aggregate Medicare payments caused by adjustments to the DRG weighting factors in a

previous fiscal year (or estimates that such adjustments for a future fiscal year) that did not take into account coding improvements or changes in discharge classifications and did not accurately represent increases in the resource intensity of patients

treated by PPS hospitals.

Section 302. Additional modification in transition for indirect medical education (IME) percentage adjustment

Teaching hospitals would receive 6.25% IME payment adjustment (for each 10% increase in teaching intensity) for discharges

occurring on or after October 1, 2000 and before April 1, 2001. The

IME adjustment would increase to 6.75% for discharges on or after

April 1, 2001 and before October 1, 2001. As indicated in Section

547(a), the payment increase would not apply to discharges after

FY2001. The IME adjustment would be 6.5% in FY2002 and 5.5%

in FY2003 and in subsequent years.

Section 303. Decrease in reductions for disproportionate share hospital (DSH) payments

Reductions in the DSH payment formula amounts would be 2%

in FY2001, 3% in FY2002, and 0% in FY2003 and subsequently. To

implement the FY2001 provision, DSH amounts for discharges occurring on or after October 1, 2000 and before April 1, 2001, would

be reduced by 3% which was the reduction in effect prior to enactment of this provision. DSH amounts for discharges occurring on

or after April 1, 2001 and before October 1, 2001 would be reduced

by only 1 percentage point. As indicated by Section 547(a), this

payment adjustment would not apply to discharges after FY2001.

Section 304. Wage index improvements

For FY2001 or any fiscal year thereafter, a Medicare Geographic Classification Review Board (MGCRB) decision to reclassify

a prospective payment system hospital for use of a different area’s

wage index would be effective for 3 fiscal years. The Secretary

would establish procedures whereby a hospital could elect to terminate this reclassification decision before the end of such period. For

FY2003 and subsequently, MGCRB would base any comparison of

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mediately preceding surveys as well as data from the most recently

published hospital wage survey.

The Secretary would establish a process which would first be

available for discharges occurring on or after October 1, 2001

where a single wage index would be computed for all geographic

areas in the state. If the Secretary applies a statewide geographic

index, an application by an individual hospital would not be considered. The Secretary would also collect occupational data every

three years in order to construct an occupational mix adjustment

for the hospital area wage index. The first complete data collection

effort would occur no later than September 30, 2003 for application

beginning October 1, 2004.

Section 305. Payment for inpatient services in rehabilitation hospitals

Total payments for rehabilitation hospitals in FY2002 would

equal the amounts of payments that would have been made if the

rehabilitation prospective payment system (PPS) had not been enacted. A rehabilitation facility would be able to make a one-time

election before the start of the PPS to be paid based on a fully

phased-in PPS rate.

Section 306. Payment for inpatient services of psychiatric hospitals

The provision would increase the incentive payments for psychiatric hospitals and distinct part units of 3% for cost reporting

periods beginning on or after October 1, 2000.

Section 307. Payment for inpatient services of long-term care hospitals

For cost reporting periods beginning during FY2001, long term

hospitals would have the national cap increased by 2% and the target amount increased by 25%. Neither these payments nor the increased bonus payments provided by BBRA 99 would be factored

into the development of the prospective payment system (PPS) for

long term hospitals. When developing the PPS for inpatient long

term hospitals, the Secretary would be required to examine the feasibility and impact of basing payment on the existing (or refined)

acute hospital DRGs and using the most recently available hospital

discharge data. If the Secretary is unable to implement a long term

hospital PPS by October 1, 2002, the Secretary would be required

to implement a PPS for these hospitals using the existing acute

hospital DRGs that have been modified where feasible.

SUBTITLE B—ADJUSTMENTS TO PPS PAYMENTS FOR SKILLED NURSING

FACILITIES

Section 311. Elimination of reduction in skilled nursing facility

(SNF) market basket update in 2001

The provision would modify the schedule and rates according

to which federal per diem payments are updated. In FY2002 and

FY2003 the updates would be the market basket index increase

minus 0.5 percentage point. The update rate for the period October

1, 2000, through March 31, 2001, would be the market basket

index increase minus 1 percentage point; the update rate for the

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period April 1, 2001, through September 30, 2001, would be the

market basket index increase plus one percentage point (this increase would not be included when determining payment rates for

the subsequent period). Temporary increases in the federal per

diem rates provided by BBRA 99 would be in addition to the increases in this provision. By July 1, 2002, the Comptroller General

would be required to submit a report to Congress on the adequacy

of Medicare payments to SNFs, taking into account the role of private payers, medicaid, and case mix on the financial performance

of SNFs and including an analysis, by RUG classification, of the

number and characteristics of such facilities. By January 1, 2005,

the Secretary would be required to submit a report to Congress on

alternatives for classification of SNF patients.

Section 312. Increase in nursing component of PPS Federal rate

The provision would increase the nursing component of each

RUG by 16.66 percent over current law for SNF care furnished

after April 1, 2001, and before October 1, 2002.

The Comptroller General would be required to conduct an

audit of nurse staffing ratios in a sample of SNFs and to report to

Congress by August 1, 2002, on the results of the audit of nurse

staffing ratios and recommend whether the additional 16.66 percent payment should be continued.

Section 313. Application of SNF consolidated billing requirement

limited to part A covered stays

Effective January 1, 2001, the provision would limit the current law consolidated billing requirement to services and items furnished to SNF residents in a Medicare part A covered stay and to

therapy services furnished in part A and part B covered stay.

The Inspector General of HHS would be required to monitor

part B payments to SNFs on behalf of residents who are not in a

part A covered stay.

Section 314. Adjustment of rehabilitation RUGS to correct anomaly

in payment rates

Effective for skilled nursing facility (SNF) services furnished

on or after April 1, 2002, the provision would increase by 6.7 percent certain federal per diem payments to ensure that Medicare

payments for SNF residents with ‘‘ultra high’’ and ‘‘high’’ rehabilitation therapy needs are appropriate in relation to payments for

residents needing ‘‘medium’’ or ‘‘low’’ levels of therapy. The 20 percent additional payment that was provided in BBRA 99 for certain

RUGS is removed to make this provision budget neutral.

The Inspector General of HHS would be required to review and

report to Congress by October 1, 2001, regarding whether the RUG

payment structure as in effect under the BBRA 99 includes incentives for the delivery of inadequate care.

Section 315. Establishment of process for geographic reclassification

The provision would permit the Secretary to establish a process for geographic reclassification of skilled nursing facilities based

upon the method used for inpatient hospitals. The Secretary may

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essary to calculate an area wage index for workers in skilled nursing facilities.

SUBTITLE C—HOSPICE CARE

Section 321. 5 Percent increase in payment base

The provision would increase, effective April 1, 2001, the base

Medicare daily payment rates for hospice care for fiscal year 2001

by 5 percentage points over the rates otherwise in effect. This increase would continue to apply after fiscal year 2001. The temporary increase in payment rates provided in BBRA 99 for FY2001

and FY2002 (.5 percent and .75 percent, respectively) would not be

affected. In addition, the hospice wage index for one Metropolitan

Statistical Area for fiscal year 2000 would be adjusted.

Section 322. Clarification of physician certification

Effective for certifications of terminal illness made on or after

the date of enactment, the provision would modify current law to

specify that the physician’s or hospice medical director’s certification of terminal illness would be based on his/her clinical judgment regarding the normal course of the individual’s illness. The

Secretary would be required to study and report to Congress within

2 years of enactment on the appropriateness of certification of terminally ill individuals and the effect of this provision on such certification.

Section 323. MedPAC report on access to, and use of, hospice benefit

The provision would require MedPAC to examine the factors

affecting the use of Medicare hospice benefits, including delay of

entry into the hospice program and urban and rural differences in

utilization rates. The provision would require a report on the study

to be submitted to Congress 18 months after enactment.

SUBTITLE D—OTHER PROVISIONS

Section 331. Relief from Medicare Part A late enrollment penalty for

group buy-in for state and local retirees

The provision would exempt certain state and local retirees, retiring prior to January 1, 2002, from the Part A delayed enrollment

penalties. These would be groups of persons for whom the state or

local government elected to pay the delayed Part A enrollment penalty for life. The amount of the delayed enrollment penalty which

would otherwise be assessed would be reduced by an amount equal

to the total amount of Medicare payroll taxes paid by the employee

and the employer on behalf of the employee. The provision would

apply to premiums for months beginning with January 1, 2002.

TITLE IV—PROVISIONS RELATING TO PART B

SUBTITLE A—HOSPITAL OUTPATIENT SERVICES

Section 401. Revision of hospital outpatient PPS payment update

The provision would modify the current law update rates applicable to the hospital outpatient PPS by providing in FY2001 an update equal to the full rate of increase in the market basket index.

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As under current law, the increase in FY2002 would be the market

basket index increase minus one percentage point.

A special rule applies to the OPD PPS rates in 2001: For the

period January 2, 2001 through March 31, 2001, the PPS amounts

shall be those in effect on the day before implementation of the

new law. For the periods April 1, 2001, through December 31,

2001, the PPS amounts in effect during the prior period shall be

increased by 0.32%.

Effective as if enacted with BBA 97, if the Secretary determines that updates to the adjustment factor used to convert the

relative utilization weights under the PPS into payment amounts

have, or are likely to, result in hospitals’ changing their coding or

classification of covered services, thereby changing aggregate payments, the Secretary would be authorized to adjust the conversion

factor in later years to eliminate the effect of coding or classification changes.

Section 402. Clarifying process and standards for determining eligibility of devices for pass-through payments under hospital outpatient PPS

The provision would modify the procedures and standards by

which certain medical devices are categorized and determined eligible for pass-through payments under the PPS. Through public rulemaking procedures, the Secretary would be required to establish

criteria for defining special payment categories under the PPS for

new medical devices. The Secretary would be required to promulgate, through the use of a program memorandum, initial categories

that would encompass each of the individual devices that the Secretary had designated as qualifying for the pass-through payments

to date. In addition, similar devices not so designated because they

were payable under Medicare prior to December 31, 1996, would

also be included in initial categories. The Secretary would be required to create additional new categories in the future to accommodate new technologies meeting the ‘‘not insignificant cost’’ test

established in BBRA 99.

Once the categories were established, pass-through payments

currently authorized under section 1833(t)(b) of the Social Security

Act would proceed on a category-specific, rather than device-specific

basis. These payments would be designated as ‘‘category-based

pass-through payments.’’ These payments would be continued to be

made for the 2 to 3 years payment period originally specified in

BBRA 99, and, for each given category, would begin when the first

such payment is made for any device included in a specified category. At the conclusion of this transitional payment period, categories would sunset and payment for the device would be included

in the underlying PPS payment for the related service.

Section 403. Application of OPD PPS transitional corridor payments to certain hospitals that did not submit a 1996 cost report

Effective as if enacted with BBRA 99, the provision would

modify current law as enacted in BBA 99 to enable all hospitals,

not just those hospitals filing 1996 cost reports, to be eligible for

transitional payments under the PPS.

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Section 404. Application of rules for determining provider-based status for certain entities

The provision would grandfather existing arrangements whereby certain entities (such as outpatient clinics, skilled nursing facilities, etc.) are considered ‘‘provider-based’’ entities, meaning they

are affiliated financially and clinically with a main hospital. Existing provider-based status designations would continue for two

years beginning October 1, 2000. If a facility or organization requests approval for provider-based status during the period October

1, 2000, through September 31, 2002, it could not be treated as if

it did not have such status during the period of time the determination is pending. In making such a status determination on or

after October 1, 2000, HCFA would treat the applicant as satisfying any requirements or standards for geographic location if it

satisfied geographic location requirements in regulations or is located not more than 35 miles from the main campus of the hospital.

An applicant facility or organization would be treated as satisfying all requirements for provider-based status if it is owned or

operated by a unit of State or local government or is a public or

private nonprofit corporation that is formally granted governmental

powers by a unit of State or local government, or is a private hospital that, under contract, serves certain low income households or

has a certain disproportionate share adjustment.

These provisions are in effect during a two-year period beginning on October 1, 2000.

Section 405. Treatment of children’s hospitals under prospective

payment system

The BBRA 99 provides special ‘‘hold harmless’’ payments to ensure that cancer hospitals would receive no less under the hospital

outpatient PPS than they would have received, in aggregate, under

the ‘‘pre-BBA’’ system, that is, the pre-PPS payment system. Effective as if included in the BBRA 99, the provision would extend this

hold harmless protection to children’s hospitals.

Section 406. Inclusion of temperature monitored cryoablation

The provision would include temperature monitored

cryoablation as part of the transitional pass-through for certain

medical devices, drugs, and biologicals under the hospital outpatient prospective payment system, effective April 1, 2001.

SUBTITLE B—PROVISIONS RELATING TO PHYSICIANS SERVICES

Section 411. GAO studied relating to physicians’ services

The provision would require the GAO to conduct a study on the

appropriateness of furnishing in physicians offices specialist services (such as gastrointestinal endoscopic physicians services) which

are ordinarily furnished in hospital outpatient departments. The

GAO would not be required to study the refinements to the practice

expense relative value made during the transition to the resourcebased system.

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Section 412. Physician group practice demonstration

The provision would require the Secretary to conduct demonstration projects to test, and if proven effective, expand the use

of incentives to health care groups participating under Medicare.

Such incentives would be designed to encourage coordination of

care furnished under Medicare Parts A and B by institutional and

other providers and practitioners; to encourage investment in administrative structures and processes to encourage efficient service

delivery; and to reward physicians for improving health outcomes.

The Secretary would establish for each group participating in a

demonstration, a base expenditure amount and an expenditure target (reflecting base expenditures adjusted for risk and expected

growth rates). The Secretary would pay each group a bonus for

each year equal to a portion of the savings for the year relative to

the target. In addition, at such time as the Secretary had developed

appropriate criteria, the Secretary would pay an additional bonus

related to process and outcome improvements. Total payments

under demonstrations could not exceed what the Secretary estimates would be paid in the absence of the demonstration program.

Section 413. Study on enrollment procedures for groups that retain

independent contractor physicians

The provision would require the Comptroller General to conduct a study of the current Medicare enrollment process for groups

that retain independent contractor physicians; particular emphasis

would be placed on hospital-based physicians, such as emergency

department staffing groups.

SUBTITLE C—OTHER SERVICES

Section 421. One-year extension of moratorium on therapy caps; report on standards for supervision of physical therapy assistants

The provision would extend the moratorium on the physical

therapy and occupational therapy caps for 1 year through 2002; it

would also extend the requirement for focused reviews of therapy

claims for the same period. The Secretary would be required to conduct a study on the implications of eliminating the ‘‘in the room’’

supervision requirements for Medicare payment for physical therapy assistants who are supervised by physical therapists and the

implications of this requirement on the physical therapy cap.

Section 422. Update in renal dialysis composite rate

The provision would specify that the composite rate payment

for renal dialysis service would be increased by 2.4% for 2001. The

provision would require the Secretary to collect data and develop

an end-stage renal disease (ESRD) market basket whereby the Secretary could estimate before the beginning of a year the percentage

increase in costs for the mix of labor and non-labor goods and services included in the composite rate. The Secretary would report to

Congress on the index together with recommendations on the appropriateness of an annual or periodic update mechanism for dialysis services. The Comptroller General would be required to study

the access of beneficiaries to dialysis services. There is a hold

harmless provision for facilities who received exceptions for their

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2000 rates. In addition, facilities which did not apply for an exception in 2000 would have the opportunity to apply during the first

6 months of 2001. Exceptions granted under the hold harmless or

granted during the extension period, would continue to apply so

long as they provide for higher payment rates. The provision would

specify that for the period January 1, 2001–March 31, 2001, the applicable composite rate is the rate in effect before enactment of this

provision. The rate in effect for the period April 1, 2001–December

31, 2001 is the rate established under this section increased by a

transitional percentage allowance equal to 0.39 percent.

Section 423. Payment for ambulance services

The provision would provide for the full inflation update in ambulance payments for 2001. It would also specify that any phasein of the ambulance fee schedule would provide for full payment of

national mileage rates in states where separate mileage payments

were not made prior to implementation of the fee schedule. The

provision would specify that for the period January 1, 2001–June

30, 2001, the inflation update would be that determined prior to

enactment of this provision. For services furnished from July 1,

2001–December 31, 2001, the update would be 4.7%. The provision

relating to mileage payments would be effective July 1, 2001.

Section 424. Ambulatory surgical centers

The provision would delay implementation of proposed regulatory changes to the ambulatory payment classification system,

which are based on 1994 cost data, until January 1, 2002. At that

time, such changes would be phased in over 4 years: in the first

year the payment amounts would be 25 percent of the revised rates

and 75 percent of the prior system rates; in the second year payments would be 50 percent of the revised rates and 50 percent of

the prior system rates, etc. The provision also requires that the revised system, based on 1999 (or later) cost data, be implemented

January 1, 2003. (The phase-in of the revised system and 1994

data would end when the system with 1999 or later data was implemented.)

Section 425. Full update for durable medical equipment

The provision would modify updates to payments for durable

medical equipment. For 2001, the payments for covered DME

would be increased by the full increase in the consumer price index

for urban consumers (CPI–U) during the 12-month period ending

June 2000. In general, in 2002 and thereafter, the annual update

would equal the full increase in the CPI–U for the 12 months ending the previous June. The provision specify that for the period

January 1, 2001, through June 30, 2000, the applicable amounts

paid for DME are the amounts in effect before enactment of the

provision. The amounts in effect for the period July 1, 2001,

through December 31, 2001, would be the amounts established

under this section increased by a transitional allowance of 3.28%.

Section 426. Full update for orthotics and prosthetics

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cent. In 2001, the increase would be equal to the percentage increase in the CPI–U during the 12-month period ending with June,

2000. For 2002, payments would be increased by one percent over

the prior year’s amounts. The provision would specify that for the

period January 1, 2001, through June 30, 2001, the applicable

amounts paid for these items would be the amounts in effect before

enactment of this provision. The amounts in effect for the period

July 1, 2001, through December 31, 2001, would be the amounts

established under this section increased by a transitional allowance

of 2.6%.

Section 427. Establishment of special payment provisions and requirements for prosthetics and certain custom fabricated

orthotic items

Under the provision, certain prosthetics or custom fabricated

orthotics would be covered by Medicare if furnished by a qualified

practitioner and fabricated by a qualified practitioner or qualified

supplier. The Secretary would be required to establish a list of such

items in consultation with experts. Within one year of enactment,

the Secretary would be required to promulgate regulations to provide these items, using negotiated rulemaking procedures.

Not later than 6 months from enactment, the Comptroller General would be required to submit to Congress a report on the Secretary’s compliance with the Administrative Procedures Act with

regard to HCFA Ruling 96–1; certain impacts of that ruling; the

potential for fraud and abuse in provision of prosthetics and

orthotics under special payment rules and for custom fabricated

items; and the effect on Medicare and Medicaid payments if that

ruling were overturned.

Section 428. Replacement of prosthetic devices and parts

The provision would authorize Medicare coverage for replacement of artificial limbs, or replacement parts for such devices, if ordered by a physician for specified reasons. Effective for items furnished on or after enactment, coverage would apply to prosthetic

items 3 or more years old, and would supersede any 5-year age

rules for such item under current law.

Section 429. Revised part B payment for drugs and bioliogicals and

related services

The provision would require the Comptroller General to study

and submit a report to Congress and the Secretary on the reimbursement for drugs and biologicals and for related services under

Medicare; the report would include specific recommendations for

revised payment methodologies. The Secretary would revise the

current payment methodologies for covered drugs and biologicals

and related services based on these recommendations; however,

total payments under the revised methodologies could not exceed

the aggregate payments the Secretary estimates would have been

made under the current law. The provision would establish a moratorium on reductions in payment rates, in effect on January 1,

2001, until the Secretary reviewed the GAO report.

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Section 430. Contrast enhanced diagnostic procedures under hospital prospective payment system

The provision would require the Secretary to create under the

hospital outpatient PPS additional and separate groups of covered

services which include procedures that utilize contrast agents and

would include contrast agents within the definition of ‘‘drugs’’ for

purposes of the medicare title. The provision would apply to items

and services furnished on or after July 1, 2001.

Section 431. Qualifications for community mental health centers

The provision would clarify the qualifications for community

mental health centers providing partial hospitalization services

under Medicare.

Section 432. Modification of Medicare billing requirements for certain Indian providers

The provision would authorize hospitals and free-standing ambulatory care clinics of the Indian Health Service or operated by a

tribe or tribal organization to bill Medicare Part B for certain services furnished at the direction of the hospital or clinic. Services covered under the provision are those furnished under the physician

fee schedule, and services furnished by a practitioner or therapist

under a fee schedule. The provision would be effective July 1, 2001.

Section 433. GAO study on coverage of surgical first assisting services of certified registered nurse first assistants

The provision would require the Comptroller General to conduct a study on the effect on both the program and beneficiaries

of covering surgical first assisting services of certified registered

nurse first assistants.

Section 434. MedPAC study and report on Medicare reimbursement

for services provided by certain providers

The provision would require MedPAC to conduct a study on

the appropriateness of current payment rates for services provided

by a certified nurse midwife, physician assistant, nurse practitioner, and clinical nurse specialist, including specifically for orthopedic physician assistants.

Section 435. MedPAC study and report on Medicare coverage of

services provided by certain non-physician providers

The provision would require MedPAC to conduct a study to determine the appropriateness of Medicare coverage of the services

provided by a surgical technologist, marriage counselor, pastoral

care counselor, and licensed professional counselor of mental

health.

Section 436. GAO study and report on the costs of emergency and

medical transportation services

The provision would require the Comptroller General to conduct a study of the costs of providing emergency and medical transportation services across the range of acuity levels of conditions for

which such transportation services are provided.

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Section 437. GAO studies and reports on Medicare payments

The provision would require the Comptroller General to conduct a study on the post-payment audit process for physicians services. The study would include the proper level of resources HCFA

should devote to educating physicians regarding coding and billing,

documentation requirements, and calculation of overpayments. The

Comptroller General would also be required to conduct a study of

the aggregate effects of regulatory, audit, oversight and paperwork

burdens on physicians and other health care providers participating in Medicare.

Section 438. MedPAC study on access to outpatient plan management services

The provision would require MedPAC to conduct a study on

the barriers to coverage and payment for outpatient interventional

pain medicine procedures under Medicare.

TITLE V—PROVISION RELATING TO PARTS A AND B

SUBTITLE A—HOME HEALTH SERVICES

Section 501. 1-Year additional delay in application of 15 percent reduction on payment limits of home health services

The provision would require that the aggregate amount of

Medicare payments to home health agencies in the second year of

the PPS (FY 2002) shall be the aggregate payments in the first

year of the PPS, updated by the market basket index (MBI) increase minus 1.1 percentage points. The 15 percent reduction to aggregate PPS amounts, which, under current law, would go into effect October 1, 2001, would be delayed until October 1, 2002.

The Comptroller General (rather than the Secretary) would be

required to submit, by April 1, 2002, a report analyzing the need

for the 15 percent or other reduction.

If the Secretary determines that updates to the PPS system for

a previous fiscal year (or estimates of such adjustments for a future

fiscal year) did (or are likely to) result in a change in aggregate

payments due to changes in coding or classification of beneficiaries’

service needs that do not reflect real changes in case mix, effective

for home health episodes concluding on or after October 1, 2001,

the Secretary may adjust PPS amounts to eliminate the effect of

such coding or classification changes.

Section 502. Restoration of full home health market basket update

for home health services for fiscal year 2001

The provision would modify the home health PPS updates.

During the period October 1, 2000, through March 31, 2001, the

rates promulgated in the home health PPS regulations on July 3,

2000, would apply for 60-day episodes of care (or visits) ending in

that period. For the period April 1, 2001, through September 31,

2001, those rates would be increased by 2.2 percent for 60-day episodes (or visits) ending in that time period. This increase would be

included in determining subsequent payment amounts.

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Section 503. Temporary two-month periodic interim payment

The provision would provide for a one-time payment for certain

home health agencies that were receiving periodic interim payments under current law. Home health agencies that were receiving such payments as of September 30, 2000, receive a one-time

payment equal to four times the last 2-week payment the agency

received before implementation of the home health PPS on October

1, 2000. The amounts would be included in the agency’s last settled

cost report before implementation of the PPS.

Section 504. Use of telehealth in delivery of home health services

The provision would clarify that the telecommunications provisions should not be construed as preventing a home health agency

from providing a service, for which payment is made under the prospective payment system, via a telecommunications system, provided that the services do not substitute for ‘‘in-person’’ home

health services ordered by a physician as part of a plan of care or

are not considered a home health visit for purposes of eligibility or

payment.

Section 505. Study on costs to home health agencies of purchasing

nonroutine medical supplies

The provision would require that, not later than August 15,

2001, the Comptroller General shall submit to Congress a report

regarding the variation in prices home health agencies pay for nonroutine supplies, the volume of supplies used, and what effect the

variations have on the provision of services. The Secretary would

be required to make recommendations on whether Medicare payment for those supplies should be made separately from the home

health PPS.

Section 506. Treatment of branch offices; GAO study on supervision

of home health care provided in isolated rural areas

The provision would clarify that neither time nor distance between a home health agency parent office and a branch office shall

be the sole determinant of a home health agency’s branch office

status. The Secretary would be authorized to include forms of technology in determining ‘‘supervision’’ for purposes of determining a

home health agency’s branch office status.

Not later than January 1, 2002, the Comptroller General

would be required to submit to Congress a report regarding the

adequacy of supervision and quality of home health services provided by home health agency branch offices and subunits in isolated rural areas and to make recommendations on whether national standards for supervision would be appropriate in assuring

quality.

Section 507. Clarification of the homebound benefit

The provision clarifies that the need for adult day care for a

patient’s plan of treatment does not preclude appropriate coverage

for home health care for other medical conditions. The provision

also clarifies the ability of homebound beneficiaries to attend religious services without being disqualified from receiving home

health benefits.

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Section 508. Temporary increase for home health services furnished

in a rural area

For home health services furnished in certain rural areas during the 2-year period beginning April 1, 2001, Medicare payments

are increased by 10%, without regard to budget neutrality for the

overall home health prospective payment system. This temporary

increase would not be included in determining subsequent payments.

SUBTITLE B—DIRECT GRADUATE MEDICAL EDUCATION

Section 511. Increase in floor for direct graduate medical education

payments

A hospital’s approved per resident amount for cost reporting

periods beginning during FY 2002 would not be less than 85% of

the locality adjusted national average per resident amount.

Section 512. Change in distribution formula for Medicare+Choice

related nursing and allied health education costs

A hospital would receive nursing and allied health payments

for Medicare managed care enrollees based on its per day cost of

allied and nursing health programs and number of days attributed

to Medicare enrollees in comparison to that in all other hospitals.

The provision would be effective for portions of cost reporting periods occurring on or after January 1, 2001.

SUBTITLE C—CHANGES IN MEDICARE COVERAGE AND APPEALS

PROCESS

Section 521. Revisions to Medicare appeals process

The provision would modify the Medicare appeals process.

Generally, initial determinations by the Secretary would be concluded no later than 45 days from the date the Secretary received

a claim for benefits. Any individual dissatisfied with the initial determination would be entitled to a redetermination by the carrier

or fiscal intermediary would made the initial determination. Such

redetermination would be required to be completed within 30 days

of a beneficiary’s request. Beneficiaries could appeal the outcome of

a redetermination by seeking a reconsideration. Generally, a request for a reconsideration must be initiated no later than 180 days

after the date the individual receives the notice of an adverse redetermination. In addition, if contested amounts are greater than

$100, an individual would be able to appeal an adverse reconsideration decision by requesting a hearing by the Secretary (first for a

hearing by an administrative law judge, then in certain circumstances, for a hearing before the Department of Appeals

Board). If the dispute is not satisfactorily resolved through this administrative process, and if contested amounts are greater than

$1,000, the individual would be able to request judicial review of

the Secretary’s final decision. Aggregation of claims to meet these

thresholds would be permitted.

An expedited determination would be available for a beneficiary who receive notice: (1) that a provider plans to terminate

services and a physician certifies that failure to continue the proviVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00899 Fmt 6601 Sfmt 6601 E:\HR\OC\HR1033.007 pfrm03 PsN: HR1033
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sions of the services is likely to place the beneficiary’s health at

risk; or (2) that the provider plans to discharge the beneficiary.

The Secretary would enter into 3-year contracts with at least

12 qualified independent contractors (QICs) to conduct reconsiderations. A QIC would promptly notify beneficiaries and Medicare

claims processing contractors of its determinations. A beneficiary

could appeal the decision of a QIC to an ALJ. In cases where the

ALJ decision is not rendered within the 90-day deadline, the appealing party would be able to request a DAB hearing.

The Secretary would perform outreach activities to inform

beneficiaries, providers, and suppliers of their appeal rights and

procedures. The Secretary would submit to Congress an annual report including information on the number of appeals for the previous year, identifying issues that require administrative or legislative actions, and including recommendations for change as necessary. The report would also contain an analysis of the consistency

of the QIC determinations as well as the cause for any identified

inconsistencies.

Section 522. Revisions to Medicare coverage process

The provision would clarify when and under what circumstances Medicare coverage policy could be challenged. An aggrieved party could file a complaint concerning a national coverage

decision. Such complaint would be reviewed by the Department Appeals Board (DAB) of HHS. The provision would also permit an aggrieved party to file a complaint concerning a local coverage determination. In this case, the determination would be reviewed by an

administrative law judge. If unsatisfied, complainants could subsequently seek review of such a local policy by the DAB. In both

cases, a DAB decision would constitute final HHS action, and

would be subject to judicial review. The Secretary would be required to implement DAB decisions and ALJ decisions (in the case

of a local coverage policy) within 30 days. The provision would also

permit an affected party to submit a request to the Secretary to

issue a national coverage or noncoverage determination if one has

not been issued. The Secretary would have 90 days to respond.

HHS would be required to prepare an annual report on national

coverage determinations.

SUBTITLE D—IMPROVING ACCESS TO NEW TECHNOLOGIES

Section 531. Reimbursement improvements for new clinical laboratory tests and durable medical equipment

The provision would specify that the national limitation

amount for a new clinical laboratory test would equal 100% of the

national median for such test. The Secretary would be required to

establish procedures that permit public consultation for coding and

payment determinations for new clinical diagnostic laboratory tests

and new durable medical equipment. The Secretary would be required to report to Congress on specific procedures used to adjust

payments for advanced technologies; the report would include recommendations for legislative changes needed to assure fair and appropriate payments.

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Section 532. Retention of HCPCS level III codes

The provision would extend the time for the use of local codes

(known as HCPCS level III codes) through December 21, 2003; the

Secretary would be required to make the codes available to the

public.

Section 533. Recognition of new medical technologies under Medicare inpatient hospital PPS

The Secretary would be required to submit a report to Congress no later than April 1, 2001, on potential methods for more

rapidly incorporating new medical services and technologies used

in the inpatient setting in the clinical coding system used with respect to payment for inpatient services. The Secretary would be required to identify the preferred methods for expediting these coding

modifications in her report, and to implement such method by October 1, 2001. Additional hospital payments could be made by

means of a new technology group (DRG), an add-on payment, payment adjustment or other mechanism. However, separate fee

schedules for additional new technology payments would not be

permitted. The Secretary would implement the new mechanism on

a budget neutral basis. The total amount of projected additional

payments under the mechanism would be limited to an amount not

greater than the Secretary’s annual estimation of the costs attributable to the introduction of new technology in the hospital sector

as a whole (as estimated for purposes of the annual hospital update

calculation).

SUBTITLE E—OTHER PROVISIONS

Section 541. Increase in reimbursement for bad debt

Effective beginning with cost reports starting in FY2001, the

provision would increase the percentage of the reasonable costs associated with beneficiaries’ bad debt in hospitals that Medicare

would reimburse to 70%.

Section 542. Treatment of certain physician pathology services

under Medicare

The provision would permit independent laboratories, under a

grandfather arrangement to continue, for a 2-year period (2001–

2002), direct billing for the technical component of pathology services provided to hospital inpatients and hospital outpatients. The

Comptroller General would be required to conduct a study of the

effect of these provisions on hospitals and laboratories and access

of fee-for-service beneficiaries to the technical component of physician pathology services. The report would include recommendations

on whether the provisions should continue after the 2-year period

for either (or both) inpatient and outpatient hospital services and

whether the provision should be extended to other hospitals.

Section 543. Extension of advisory opinion authority

The Office of the Inspector General’s authority to issue advisory opinions to outside parties who request guidance on the applicability of the anti-kickback statute, safe harbor provisions and

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other OIG health care fraud and abuse sanctions would be made

permanent.

Section 544. Change in annual MedPAC reporting

The provision would delay the reporting date for the MedPAC

report on issues affecting the Medicare program by 15 days to June

15. The provision would also require record votes on recommendations contained both in this report and the March report on payment policies.

Section 545. Development of patient assessment instruments

The provision would require the Secretary to report to the Congress on the development of standard instruments for the assessment of the health and functional status of patients and make recommendations on the use of such standard instruments for payment purposes.

Section 546. GAO report on impact of the Emergency Medical Treatment and Active Labor Act (EMTALA) on hospital emergency

departments

GAO would be required to evaluate the impact of the Emergency Medical Treatment and Active Labor Act on hospitals, emergency physicians, and on-call physicians covering emergency departments and to submit a report to Congress by May 1, 2001.

Section 547. Clarification of application of temporary payment increases for 2001

The special increases and adjustments of the acute hospital

payment update, the indirect medical education adjustment, and

the disproportionate share hospital adjustment that are in effect

between April and October 2001 do not apply to discharges after

FY 2001 and are not included in determining subsequent payments.

Special update payments under the skilled nursing facility prospective payment system between April and October 2001 would

not apply to SNF services furnished after that period and would

not be included when determining payments for the subsequent period.

Special market basket update payments under the home

health prospective payment system between April and October

2001 would not be included in determining subsequent payments.

Also, temporary payments to certain rural home health agencies

from April 1, 2001, through September 30, 2002, would not be included in determining subsequent payments.

TITLE VI—PROVISIONS RELATING TO PART C

(MEDICARE+CHOICE PROGRAM) AND OTHER MEDICARE

MANAGED CARE PROVISIONS

SUBTITLE A—MEDICARE+CHOICE PAYMENT REFORMS

Section 601. Increase in minimum payment amount

The provision would set the minimum payment amount for

aged enrollees within the 50 states and the District of Columbia in

a Metropolitan Statistical Area with a population of more than

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250,000 at $525 in 2001. For all other areas within the 50 States

and the District of Columbia, the minimum would be $475. For any

area outside the 50 States and the District of Columbia, the $525

and $475 minimum amounts would also be applied, except that the

2001 minimum payment amount could not exceed 120% of the 2000

minimum payment amount. This increase would go into effect

March 1, 2001.

Section 602. Increase in minimum percentage increase

This provision would apply a 3% minimum update in 2001 and

return to the current law minimum update of 2% thereafter. This

increase would go into effect March 1, 2001.

Section 603. Phase in of risk adjustment

The current risk adjustment methodology (in which 10% of

payments would be based on risk-adjusted inpatient data built on

the 15 principal inpatient diagnostic cost groups (PIP–DCGs) and

90% would be adjusted solely using the older demographic method)

would continue through 2003. Beginning in 2004, the risk adjustment would be based on data from inpatient hospital and ambulatory settings and the risk adjustment would be phased in at 30%

for 2004, 50% for 2005, 75% for 2006, and 100% for 2007 and subsequent years.

Section 604. Transition to revised Medicare+Choice payment rates

Within 2 weeks after the date of enactment of the Act, the Secretary must announce revised M+C capitation rates for 2001, due

to changes from this Act. Plans that previously provided notice of

their intention to terminate contracts or reduce their service area

for 2001 would have 2 weeks after announcement of the revised

rates to rescind their notice and submit ACR information. Further,

any M+C organization that would receive higher capitation payments as a result of this Act must submit revised ACR information

within 2 weeks after announcement of the revised rates. Plans may

only reduce premiums, reduce cost sharing, enhance benefits, or

utilize stabilization funds. Any regulations that limit stabilization

fund amounts would be waived, with respect to ACR submissions

under this section of the bill. Notwithstanding the issuance of revised rates, M+C organizations would continue to be paid on a feefor-service basis for costs associated with new national coverage determinations that are made mid-year.

Section 605. Revision of payment rates for ESRD patients enrolled

in Medicare+Choice plans

This provision would require that the Secretary increase the

M+C payment rates for enrollees with ESRD. The revised rates

would reflect the demonstration rate (including the risk-adjustment

methodology) of social health maintenance organizations’ ESRD

capitation demonstrations. The revised rates would include adjustments for factors such as renal treatment modality, age, and underlying cause of the disease. These revised rates would be effective

beginning in January 2002, and the Secretary of HHS would be required to publish the adjustments in final form by July 1, 2001.

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Section 606. Permitting premium reductions as additional benefits

under Medicare+Choice plans

This provision would permit M+C plans to offer reduced Medicare Part B premiums to their enrollees as part of providing any

required additional benefits or reduced cost-sharing. An M+C organization could elect a reduction in its M+C payment up to 125% of

the annual Part B premium. However, only 80% of this amount

could be used to reduce an enrollee’s actual Part B premium. This

would have the effect of returning up to 100% of the beneficiary’s

Part B premium. The reduction would apply uniformly to each enrollee of the M+C plan. Plans would include information about Part

B premium reductions as part of the required information that is

provided to enrollees for comparing plan options. This provision

would be effective beginning in 2003.

Section 607. Full implementation of risk adjustment for congestive

heart failure enrollees for 2001

This provision would fully implement risk adjustment based on

inpatient hospital diagnoses for an individual who had a qualifying

congestive heart failure inpatient diagnosis between July 1, 1999

and June 30, 2000, if that individual was enrolled in a coordinated

care plan offered on January 1, 2001. This would apply for only 1

year, beginning on January 1, 2001. This payment amount would

be excluded from the determination of the budget neutrality factor.

Section 608. Expansion of application of Medicare+Choice new entry

bonus

This provision would expand the application of the new entry

bonus for M+C plans to include areas for which notification had

been provided, as of October 3, 2000, that no plans would be available January 1, 2001.

Section 609. Report on inclusion of certain costs of the Department

of Veterans Affairs and Military Facility Services in calculating

Medicare+Choice payment rates

The Secretary shall report to Congress by January 1, 2003, on

a method to phase-in the costs of military facility services furnished by the Department of Veterans Affairs or the Department

of Defense to Medicare-eligible beneficiaries in the calculation of an

area’s M+C capitation payment. This report would include, on a

county-by-county basis: the actual or estimated costs of such services to Medicare-eligible beneficiaries; the change in M+C capitation payment rates if such costs were included in the calculation

of payment rates; one or more proposals for the implementation of

payment adjustments to M+C plans in counties where the payment

rate has been affected due to failure to account for the cost of such

services; and a system to ensure that when a M+C enrollee receives

covered services through a facility of these Departments, there is

an appropriate payment recovery to the Medicare program.

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SUBTITLE B—OTHER MEDICARE+CHOICE REFORMS

Section 611. Payments of additional amounts for new benefits covered during a contract term

The provision would require payment adjustments to M+C

plans if a legislative change resulted in significant increased costs,

similar to the current law requirements for adjusting payments due

to significant increased costs resulting from National Coverage Determination (NCDs). In addition, this provision would require that

cost projections and payment adjustments be based on actuarial estimates provided by the Chief Actuary of the Health Care Financing Administration.

Section 612. Restriction on implementation of significant new regulatory requirements mid-year

The provision would preclude the Secretary from implementing, other than at the beginning of a calendar year, regulations that impose new, significant regulatory requirements on M+C

organizations.

Section 613. Timely approval of marketing material that follows

model marketing language

The provision would require the Secretary to make decisions,

within 10 days, approving or modifying marketing material used by

M+C organizations, provided that the organization uses model language specified by the Secretary. This provision would apply to

marketing material submitted on or after January 1, 2001.

Section 614. Avoiding duplicative regulation

This provision would further stipulate when Medicare law preempts State law or regulation from applying to M+C plans, by

specifying that the term benefit requirements includes cost-sharing

requirements. Second, the provision would stipulate that State

laws and regulations affecting marketing materials, and summaries and schedules of benefits regarding an M+C plan, would

also be preempted by Medicare law.

Section 615. Election of uniform local coverage policy for

Medicare+Choice plan covering multiple localities

An M+C organization offering a plan in an area with more

than one local coverage policy would be able to elect to have the

local coverage policy for the part of the area that is most beneficial

to M+C enrollees (as identified by the Secretary) apply to all M+C

enrollees enrolled in the plan.

Section 616. Eliminating health disparities in Medicare+Choice

Program

This provision would expand the M+C quality assurance programs for M+C plans to include a separate focus on racial and ethnic minorities. The Secretary would also be required to report to

Congress how the quality assurance programs focus on racial and

ethnic minorities, within 2 years after enactment and biennially

thereafter.

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Section 617. Medicare+Choice Program compatibility with employer

or union group health plans

In order to make the M+C program compatible with employer

or union group health plans, this provision would allow the Secretary to waive or modify requirements that hinder the design of,

offering of, or enrollment in certain M+C plans. Plans included in

the category are M+C plans under contract between M+C organizations and employers, labor organizations, or trustees of a fund established by employers and/or labor organizations.

Section 618. Special Medigap enrollment anti-discrimination provision for certain beneficiaries

This provision would extend the period for Medigap enrollment

for certain M+C enrollees affected by termination of coverage. For

individuals enrolled in an M+C plan during a 12-month trial period, their trial period would begin again if they re-enrolled in another M+C plan because of an involuntary termination. During this

new trial period, they would retain their rights to enroll in a

Medigap policy; however, the total time for a trial period could not

exceed 2 years from the time they first enrolled in an M+C plan.

Section 619. Restoring effective date of elections and changes of elections of Medicare+Choice plans

This provision would allow individuals who enroll in an M+C

plan after the 10th day of the month to receive coverage beginning

on the first day of the next calendar month, effective June 1, 2001.

Section 620. Permitting ESRD beneficiaries to enroll in another

Medicare+Choice plan if the plan in which they are enrolled is

terminated

This provision would permit ESRD beneficiaries to enroll in

another M+C plan if they lost coverage when their plan terminated

its contract or reduced its service area. This provision would also

be retroactive, to include individuals whose enrollment in an M+C

plan was terminated involuntarily on or after December 31, 1998.

Section 621. Providing Choice for skilled nursing facility services

under the Medicare+Choice Program

Effective for M+C contracts entered into or renewed on or after

the date of enactment, the provision would require an M+C plan

to cover post-hospitalization skilled nursing care through an enrollee’s ‘‘home skilled nursing facility’’ if the plan has a contract with

the facility or if the home facility agrees to accept substantially

similar payment under the same terms and conditions that apply

to similarly situated SNFs that are under contract with the plan.

A ‘‘home skilled nursing facility’’ is defined as (a) one in which the

enrollee resided at the time of the hospital admission that triggered eligibility for SNF care upon discharge, or (b) is the facility

that is providing such services through the continuing care retirement community in which the enrollee resided at the time of hospital admission, or (c) is the facility in which the spouse of the enrollee is residing at the time of the enrollee’s hospital discharge.

The beneficiary would be required to receive coverage for SNF care

at the home facility that is no less favorable than he or she would

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receive otherwise in another SNF that has a contract with the

plan.

Home skilled nursing facilities are permitted to refuse to accept Medicare+Choice enrollees or to impose conditions on their acceptance of such an enrollee.

The provision would require the Medicare Payment Advisory

Commission (MedPAC) to analyze and, within 2 years of enactment, report to Congress on the effects of this provision on the

scope of benefits, administrative and other costs incurred by M+C

organizations, and the contractual relationships between those

plans and SNFs.

Section 622. Providing for accountability of Medicare+Choice plans

The provision would mandate review of ACR submissions by

the HCFA Chief Actuary with respect to submissions for ACRs

filed on or after May 1, 2001.

Section 623. Increased civil money penalties for Medicare+Choice

organizations that terminate contracts mid-year

The provision would increase to $100,000 (or such higher level

as the Secretary of Health and Human Services) the maximum

civil money penalty that could be imposed for a Medicare+Choice

organization that terminates its Medicare+Choice contract, other

than at an appropriate time after providing appropriate notice.

SUBTITLE C—OTHER MANAGED CARE REFORMS

Section 631. 1-Year extension of social health maintenance organization (SHMO) demonstration project

The provision would extend SHMO waivers until 30 months

after the Secretary submits a report with a plan for integration and

transition of SHMOs into an option under the M+C program. This

30-month extension would supersede the 18-month extension in

BBRA 99.

Section 632. Revised terms and conditions for extension of Medicare

community nursing organization (CNO) demonstration project

Effective as if enacted with BBRA99, the provision would

eliminate the requirement that CNO capitated payments be reduced to ensure budget neutrality. Through December 2001, the

projects would operate under the same terms and conditions applicable during 1999, but with modification to the capitation rates.

From October 1, 2000, through December 31, 2000, the capitation

rates would be adjusted for inflation since 1999 and for changes in

service packages, but reduced by 10 percent for in projects in Arizona, Minnesota, and Illinois and by 15 percent in New York. In

2001, the rates would be determined by actuarially adjusting the

rates in the prior period for inflation, utilization, and changes to

the service package. Adjustments would be made to case management fees for certain frail enrollees, and requirements would be imposed to create greater uniformity in clinical features among participating sites and to improve quality and enrollee satisfaction.

By July 1, 2001, the Secretary would be required to submit to

the House Committees on Ways and Means and Commerce and the

904

Senate Committee on Finance a report evaluating the projects for

the period July 1997 through December 1999 and for the extension

period after September 30, 2000. A final report would be required

by July 1, 2002. The provision would require certain methods to be

used to compare spending per beneficiary under the projects.

Section 633. Extension of Medicare municipal health services demonstration projects

The provision would extend the Medicare municipal health

services demonstration projects for 2 additional years, through December 31, 2004.

Section 634. Service area expansion for Medicare cost contracts during transition period

This provision would allow service area expansion for Medicare

cost contracts, if the request was submitted to the Secretary before

September 1, 2003.

TITLE VII—MEDICAID

Section 701. DSH payments

(a) Modifications to DSH allotments

For FY2001, the provision would set each state’s DSH allotment equal to its allotment for FY2000 increased by the percentage

change in the consumer price index for that year, subject to a ceiling that would be equal to 12% of that state’s total medical assistance payments in that year.

For FY2002, the provision would set each state’s DSH allotment equal to its allotment for 2001 as determined above, increased by the percentage change in the consumer price index for

FY2001, subject to a ceiling equal to 12% of that state’s total medical assistance payments in that year.

For extremely low DSH states, states whose FY1999 federal

and state DSH expenditures (as reported to HCFA on August 31,

2000) are greater than zero but less than one percent of the state’s

total medical assistance expenditures during that fiscal year, the

DSH allotments for FY2001 would be equal to 1 percent of the

state’s total amount of expenditures under their plan for such assistance during that fiscal year. For subsequent fiscal years, the allotments for extremely low DSH states would be equal to their allotment for the previous year, increased by the percentage change

in the consumer price index for the previous year, subject to a ceiling of 12% of that state’s total medical assistance payments in that

year.

Effective on the date that the final regulation for Medicaid

upper payment limits is published in the Federal Register.

(b) Assuring identification of Medicaid managed care patients

Effective for Medicaid managed care contracts in effect on January 1, 2000, the provision would clarify that Medicaid enrollees of

managed care organizations and primary care case management

organizations are to be included for the purposes of calculating the

Medicaid impatient utilization rate and the low-income utilization

rate. Also effective January 1, 2001, states must include in their

905

MCO contracts information that allows the state to determine

which hospital services are provided to Medicaid beneficiaries

through managed care, and would also require states to include a

sponsorship code for the managed care entity on the Medicaid

beneficiary’s identification card.

(c) Application of Medicaid DSH transition rule to public hospitals in all states

The provision would revise BBA97, as modified by BBRA 99,

so that the 175% hospital-specific DSH limit would apply to qualifying public hospitals in all states. (The limit currently applies only

to certain public hospitals in California.) The limit, allowing DSH

payments of up to 175% of each hospital’s cost of unreimbursed

care, would apply for two state fiscal years beginning on the first

day of the state fiscal year that begins after September 30, 2002,

and ends on the last day of the succeeding state fiscal year. Hospitals that would qualify for the higher hospital-specific limit would

be those owned or operated by a state and meet the minimum federal requirements for disproportionate share hospitals. The permanent ceiling for California would not be affected.

For states operating under waivers approved under section

1115 of the Social Security Act, increase payments for public hospitals under this provision would be included in the baseline expenditure limit for the purposes of determining budget neutrality.

(d) Assistance for certain public hospitals

The provision would provide additional funds for certain public

hospitals that are: owned or operated by a state (or by an instrumentality or unit of government within a state); are not receiving

DSH payments as of October 1, 2000; and have a lot-income utilization rate in excess of 65% as of the same date. Funds provided

under this section to states with eligible hospitals are in addition

to DSH allotments. The total assistance under this section for all

states cannot exceed the following amounts: $15 million for

FY2002; $176 million for 2003; $269 million for 2004; $330 million

for 2005 and for FY 2006 and each fiscal year thereunder, $375

million.

(e) DSH payment accountability standards

The provision would require the Secretary to implement accountability standards to ensure that DSH payments are used to

reimburse States and hospitals that are eligible for such payments

and are otherwise in accordance with Medicaid statutory requirements.

Section 702. New prospective payment system for Federally-qualified health centers and rural health clinics

The provision would create a new Medicaid prospective payment system for federally qualified health centers (FQHCs) and

rural health centers (RHCs) beginning in January of FY2001. Existing FQHCs and RHCs would be paid per visit payments equal

to 100% of the average costs incurred during 1999 and 2000 adjusted to take into account any increase or decrease in the scope

of services furnished. For entities first qualifying as FQHCs or

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RHCs after 2000, the year visit payments would begin in the first

year that the center or clinic attains qualification and would be

based on 100% of the costs incurred during that year based on the

rates established for similar centers or clinics with similar caseloads in the same or adjacent geographic area. In the absence of

such similar centers or clinics, the methodology would be based on

that used for developing rates for established FQHCs or RHCs or

such methodology or reasonable specifications as established by the

Secretary. For each fiscal year thereafter, per visit payments for all

FQHCs and RHCs would be equal to amounts for the preceding fiscal year increased by the percentage increase in the Medicare Economic Index applicable to primary care services for that fiscal year,

and adjusted for any increase or decrease in the scope of Services

furnished during the fiscal year. In managed care contracts, States

must make supplemental payments to the center or clinic that

would be equal to the difference between contracted amounts and

the cost-based amounts. Those payments would be paid on a schedule mutually agreed to by the State and the FQHC or RHC. Alternative payment methods would be permitted only when payments

are at least equal to amounts otherwise provided.

The provision would also direct the Comptroller General to

provide for a study on how to rebase or refine cost payment methods for the services of FQHCs and RHCs. The report would be due

to Congress no later than 4 years after the date of enactment.

Section 703. Streamlined approval of continued state-wide 1115

Medicaid waivers

The provision would define the process for submitting requests

for and receiving extensions of Medicaid demonstration waivers authorized under Section 1115 of the Social Security Act that have already received initial 3-year extensions. It would require each state

requesting such an extension to submit an application at least 120

days prior to the expiration date of the existing extension to submit

an application at least 120 days prior to the expiration date of the

existing waiver. No later than 45 days after the Secretary receives

such application, the Secretary would be required to notify the

State if she intends to review the existing terms and conditions of

the project and would inform the State of proposed changes in the

terms and conditions of the waiver. If the Secretary fails to provide

such notification, the request would be deemed approved. During

the 30-day period beginning after the Secretary provides the proposed terms and conditions to the state, those terms and conditions

would be negotiated. No later than 120 days after the date that the

request for extension was submitted (or such later date as agreed

to by the chief executive officer of the State) the Secretary would

be required to approve the application subject to the agreed upon

terms and conditions or, in the absence of an agreement, such

terms and conditions that are determined by the Secretary to be

reasonably consistent with the overall objective of the waiver, or

disapprove the application. If the waiver is not approved or disapproved during this period, the request would be deemed approved in the terms and conditions as have been agreed to (if any)

by the Secretary and the State. Approvals would be for periods not

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to exceed 3 year and would be subject to the final reporting and

evaluation requirements in current law.

Section 704. Medicaid county-organized health systems

The provision would allow the current exemption for certain

Health Insuring Organizations (HIOs) from certain Medicaid HMO

contracting requirements to apply as long as no more than 14% of

all Medicaid beneficiaries in the state are enrolled in those HIOs.

This provision would be effective as if included in the enactment

of the Consolidated Omnibus Budget Reconciliation Act of 1985.

Section 705. Deadline for issuance of final regulation relating to

Medicaid upper payment limits

The provision would require the Secretary to issue final regulations governing upper payment limits (UPLs) for inpatient and outpatient services provided by certain types of facilities no later than

December 31, 2000. It would also require that the final regulation

establish a separate UPL for non-state-owned or operated government facilities based on a proposed rule announced in October,

2000.

The proposed rule would specify two transition periods for

states with payment arrangements that are noncompliant, one for

states with such arrangements effective on or after October 1, 1999

and the other for those states with arrangements that were effective before that date. The starting point of the phase-out of existing

payment arrangements, the percentage reduction in payments each

year, and the overall length of time permitted for full phase-out

would vary for the two transition periods.

The provision also requires the final regulation to stipulate a

third set of rules governing the transition period for certain states.

This additional set of rules would apply to states with payment arrangements approved or in effect on or before October 1, 1992, or

under which claims for federal matching were paid on or before

that date, and for which such payments exceed the UPLs established under the final regulation. For these states, a 6-year transition period would apply, beginning with the period that begins on

the first state fiscal year that starts after September 30, 2002 and

ends on September 30, 2008. For each year during the transition

period, applicable states must reduce excess payments by 15%. Full

compliance with final regulations is required by October 1, 2008.

Section 706. Alaska FMAP

The provision would change the formula for calculating the

state percentage and thus the federal matching percentage for

Alaska for fiscal years 2001 through 2005. The state percentage for

Alaska would be calculated by using an adjusted per capita income

calculation instead of the state-wide average per capita income calculation generally used. The adjusted per capita income for Alaska

would be calculated as the three year average per capita income for

the state divided by 1.05.

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Section 707. 1-Year extension of welfare-to-work transition

This provision extends by 1 year the sunset on transitional

medical assistance for families no longer eligible for welfare from

September 30, 2001 to September 30, 2002.

Section 708. Additional entities qualified to determine Medicaid

presumptive eligibility for low-income children

Under Medicaid presumptive eligibility rules, States are allowed to temporarily enroll children whose family income appears

to be below Medicaid income standards, until a final formal determination of eligibility is made.

The provision adds several entities to the list of those qualified

to make Medicaid presumptive eligibility determinations for children. These new entities include agencies that determine eligibility

for Medicaid or the State Children’s Health Insurance program; or

certain elementary and secondary schools, including those operated

or supported by the Bureau of Indian Affairs.

Section 709. Development of uniform QMB/SLMB application form

This provision requires the secretary of Health and Human

Services to develop a simplified national application form for

States, at their option, to use for individuals who apply for medical

assistance for medicare cost-sharing under the medicaid program.

Section 710. Technical corrections

This provision makes technical medicaid amendments that exempt from certain upper income limitations individuals made eligible for medical assistance, at a State’s option, under the Foster

Care Independence Act of 1999 and under the Breast and Cervical

Cancer Prevention and Treatment Act of 2000.

TITLE VIII—STATE CHILDREN’S HEALTH INSURANCE

PROGRAM

Section 801. Special rule for redistribution and availability of unused fiscal year 1998 and 1999 SCHIP allotments

The provision would establish a new method for distributing

unspent FY1998 and FY1999 allotments. States that use all their

SCHIP allotments (for each of those years) would receive an

amount equal to estimated spending in excess of their original exhausted allotment. Each territory that spends its original allotment

would receive an amount that bears the same ratio to 1.05% of the

total amount available for redistribution as the ratio of its original

allotment to the total allotment for all territories.

States that do not use all their SCHIP allotment would receive

an amount equal to the total amount of unspent funds, less

amounts distributed to states that fully exhausted their original allotments, multiplied by the ratio of a state’s unspent original allotment to the total amount of unspent funds. States may use up to

10% of the retained FY1998 funds for outreach activities.

To calculate the amounts available for redistribution in each

formula described above, the Secretary would use amounts reported by states not later than December 15, 2000 for the FY1998

redistribution and November 30, 2001 for the FY1999 redistribuVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00912 Fmt 6601 Sfmt 6601 E:\HR\OC\HR1033.008 pfrm03 PsN: HR1033
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tion as reported on HCFA Form 64 or HCFA Form 21, as approved

by the Secretary. Redistributed funds would be available through

the end of FY2002.

Section 802. Authority to pay Medicaid expansion SCHIP costs from

title XXI appropriation

This provision provides a technical accounting clarification requested by the Health Care Financing Administration. It would authorize the payment of the costs of SCHIP Medicaid expansions

and costs of benefits provided during periods of presumptive eligibility from the SCHIP appropriation rather than from the Medicaid

appropriation, with a subsequent offset. In addition, the provision

would codify proposed rules regarding the order of payments for

benefits and administrative costs from state-specific SCHIP allotments.

Section 803. Application of Medicaid child presumptive eligibility

provisions

Under Medicaid presumptive eligibility rules, states are allowed to temporarily enroll children whose family income appears

to be below Medicaid income standards, until a final formal determination of eligibility is made. There is no express provision for

presumptive eligibility under separate (non-Medicaid) SCHIP programs. However, the Secretary of HHS permits states to develop,

for separate (non-Medicaid) SCHIP programs, procedures that are

similar to those permitted under Medicaid.

The provision clarifies states’ authority to conduct presumptive

eligibility determinations, as defined in Medicaid law, under separate (non-Medicaid) SCHIP programs.

TITLE IX—OTHER PROVISIONS

SUBTITLE A—PACE PROGRAM

Section 901. Extension of transition for current waivers

The provision would permit the Secretary to continue to operate the Program of All-Inclusive Care for the Elderly (PACE) under

waivers for a period of 36 months (rather than 24 months), and

States may do so for 4 years (rather than 3 years). OBRA 86 required the Secretary to grant waivers of certain Medicare and Medicaid requirements to not more than 10 public or non-profit private

community-based organizations to provide health and long-term

care services on a capitated basis to frail elderly persons at risk of

institutionalization. BBA 97 established PACE as a permanent provider under Medicare and as a special benefit under Medicaid.

Section 902. Continuing of certain operating arrangements permitted

If prior to becoming a permanent component of Medicare, a

PACE demonstration project had contractual or other operating arrangements that are not recognized under permanent program regulations, the provision would require the Secretary, in consultation

with the state agency, to permit it to continue under such arrangements as long as it is consistent with the objectives of the PACE

program.

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Section 903. Flexibility in exercising waiver authority

The provision would enable the Secretary to exercise authority

to modify or waive Medicare or Medicaid requirements to respond

to the needs of PACE programs related to employment and the use

of community care physicians. The Secretary must approve requests for such waivers within 90 days of the date the request for

waiver is received.

SUBTITLE B—OUTREACH TO ELIGIBLE LOW-INCOME MEDICARE

BENEFICIARIES

Section 911. Outreach on availability of Medicare cost-sharing assistance to eligible low-income Medicare beneficiaries

The provision would require the Commissioner of the Social

Security Administration to conduct outreach efforts to identify individuals who may be eligible for Medicaid payment of Medicare cost

sharing and to notify these persons of the availability of such assistance. The Commissioner would also be required to furnish, at

least annually, a list of such individuals who reside in each state

to that state’s agency responsible for administering the Medicaid

program as well as to any other appropriate state agency. The list

should include the name and address, and whether such individuals have experienced reductions in Social Security benefits. The

provision would also require the General Accounting Office to conduct a study of the impact of the outreach activities of the Commissioner to submit to Congress no later than 18 months after such

outreach begins. The provision would be effective one year after

date of enactment.

SUBTITLE C—MATERNAL AND CHILD HEALTH BLOCK GRANT

Section 921. Increase in authorization of appropriations for the maternal and child health services block grant

The provision would increase the authorization of appropriations for the Maternal and Child Health Services Block Grant

under Title V from $705,000,000 to $850,000,000 for fiscal year

2001 and each fiscal year thereafter.

SUBTITLE D—DIABETES

Section 931. Increase in appropriations for special diabetes programs for type I diabetes and Indians

The provision would extend for 1 year, to FY2003, the authority for grants to be made for both the Special Diabetes Program for

Type I Diabetes and for the Special Diabetes Programs for Indians

under the Public Health Service Act. The provision would also expand funding available for these programs. For each grant program, the provision would increase total funding to $100 million

each for FY2001, FY2002 and FY2003. For FY2001 and FY2002,

$30 million of the $100 million for each program would be transferred from SCHIP as set forth in the Balanced Budget Act of 1997;

the remaining $70 million would be drawn from the Treasury out

of funds not otherwise appropriated. In FY2003, the entire $100

million would be drawn from the Treasury out of funds not otherwise appropriated. In addition, the provision would extend the due

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date on final evaluation reports for these two grant programs from

January 1, 2002 to January 1, 2003.

Section 932. Appropriations for Ricky Ray Hemophilia Relief Fund

This provision provides for a direct appropriation of $475 million for FY2001. Funds would be available until expended.

SUBTITLE E—INFORMATION ON NURSING FACILITY STAFFING

Section 941. Posting of information on nursing facility staffing

The provision would require medicare skilled nursing facilities

and medicaid nursing facilities to post nurse staffing information

daily for each shift in the facility, effective January 1, 2003.

SUBTITLE F—ADJUSTMENT OF MULTIEMPLOYER PLAN BENEFITS

GUARANTEED

Section 951. Adjustment of multiemployer plan benefits guaranteed

The provision adjusts the level of multiemployer pension plan

benefits guaranteed under title IV of ERISA.

COMMUNITY RENEWAL TAX RELIEF ACT OF 2000

The conference agreement would enact the provisions of H.R.

5662, as introduced on December 14, 2000. The text of that bill follows:

A BILL To amend the Internal Revenue Code of 1986 to provide for community revitalization and a 2-year extension of medical saving accounts, and for other purposes.

Be it enacted by the Senate and House of Representatives of the

United States of America in Congress assembled,

SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE.

(a) SHORT TITLE.—This Act may be cited as the ‘‘Community

Renewal Tax Relief Act of 2000’’.

(b) AMENDMENT OF 1986 CODE.—Except as otherwise expressly

provided, whenever in this Act an amendment or repeal is expressed

in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or

other provision of the Internal Revenue Code of 1986.

(c) TABLE OF CONTENTS.—

TITLE I—COMMUNITY RENEWAL AND NEW MARKETS

Subtitle A—Tax Incentives for Renewal Communities

Sec. 101. Designation of and tax incentives for renewal communities.

Sec. 102. Work opportunity credit for hiring youth residing in renewal communities.

Subtitle B—Extension and Expansion of Empowerment Zone Incentives

Sec. 111. Authority to designate 9 additional empowerment zones.

Sec. 112. Extension of empowerment zone treatment through 2009.

Sec. 113. 20 percent employment credit for all empowerment zones.

Sec. 114. Increased expensing under section 179.

Sec. 115. Higher limits on tax-exempt empowerment zone facility bonds.

Sec. 116. Nonrecognition of gain on rollover of empowerment zone investments.

Sec. 117. Increased exclusion of gain on sale of empowerment zone stock.

Subtitle C—New Markets Tax Credit

Sec. 121. New markets tax credit.

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Subtitle D—Improvements in Low-Income Housing Credit

Sec. 131. Modification of State ceiling on low-income housing credit.

Sec. 132. Modification of criteria for allocating housing credits among projects.

Sec. 133. Additional responsibilities of housing credit agencies.

Sec. 134. Modifications to rules relating to basis of building which is eligible for

credit.

Sec. 135. Other modifications.

Sec. 136. Carryforward rules.

Sec. 137. Effective date.

Subtitle E—Other Community Renewal and New Markets Assistance

PART I—PROVISIONS RELATING TO HOUSING AND SUBSTANCE ABUSE PREVENTION AND

TREATMENT

Sec. 141. Transfer of unoccupied and substandard HUD-held housing to local governments and community development corporations.

Sec. 142. Transfer of HUD assets in revitalization areas.

Sec. 143. Risk-sharing demonstration.

Sec. 144. Prevention and treatment of substance abuse; services provided through religious organizations.

PART II—ADVISORY COUNCIL ON COMMUNITY RENEWAL

Sec. 151. Short title.

Sec. 152. Establishment.

Sec. 153. Duties of Advisory Council.

Sec. 154. Membership.

Sec. 155. Powers of Advisory Council.

Sec. 156. Reports.

Sec. 157. Termination.

Sec. 158. Applicability of Federal Advisory Committee Act.

Sec. 159. Resources.

Sec. 160. Effective date.

Subtitle F—Other Provisions

Sec. 161. Acceleration of phase-in of increase in volume cap on private activity

bonds.

Sec. 162. Modifications to expensing of environmental remediation costs.

Sec. 163. Extension of DC homebuyer tax credit.

Sec. 164. Extension of DC Zone through 2003.

Sec. 165. Extension of enhanced deduction for corporate donations of computer technology.

Sec. 166. Treatment of Indian tribal governments under Federal Unemployment Tax

Act.

TITLE II—2-YEAR EXTENSION OF AVAILABILITY OF MEDICAL SAVINGS

ACCOUNTS

Sec. 201. 2-year extension of availability of medical savings accounts.

Sec. 202. Medical savings accounts renamed as Archer MSAs.

TITLE III—ADMINISTRATIVE AND TECHNICAL PROVISIONS

Subtitle A—Administrative Provisions

Sec. 301. Exemption of certain reporting requirements.

Sec. 302. Extension of deadlines for IRS compliance with certain notice requirements.

Sec. 303. Extension of authority for undercover operations.

Sec. 304. Confidentiality of certain documents relating to closing and similar agreements and to agreements with foreign governments.

Sec. 305. Increase in threshold for Joint Committee reports on refunds and credits.

Sec. 306. Treatment of missing children with respect to certain tax benefits.

Sec. 307. Amendments to statutes referencing yield on 52-week Treasury bills.

Sec. 308. Adjustments for Consumer Price Index error.

Sec. 309. Prevention of duplication of loss through assumption of liabilities giving

rise to a deduction.

Sec. 310. Disclosure of certain information to Congressional Budget Office.

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Subtitle B—Technical Corrections

Sec. 311. Amendments related to Ticket to Work and Work Incentives Improvement

Act of 1999.

Sec. 312. Amendments related to Tax and Trade Relief Extension Act of 1998.

Sec. 313. Amendments related to Internal Revenue Service Restructuring and Reform Act of 1998.

Sec. 314. Amendments related to Taxpayer Relief Act of 1997.

Sec. 315. Amendments related to Balanced Budget Act of 1997.

Sec. 316. Amendments related to Small Business Job Protection Act of 1996.

Sec. 317. Amendment related to Revenue Reconciliation Act of 1990.

Sec. 318. Other technical corrections.

Sec. 319. Clerical changes.

TITLE IV—TAX TREATMENT OF SECURITIES FUTURES CONTRACTS

Sec. 401. Tax treatment of securities futures contracts.

TITLE I—COMMUNITY RENEWAL AND NEW MARKETS

Subtitle A—Tax Incentives for Renewal Communities

SEC. 101. DESIGNATION OF AND TAX INCENTIVES FOR RENEWAL COMMUNITIES.

(a) IN GENERAL.—Chapter 1 is amended by adding at the end

the following new subchapter:

‘‘Subchapter X—Renewal Communities

‘‘Part I. Designation.

‘‘Part II. Renewal community capital gain; renewal community

business.

‘‘Part III. Additional incentives.

‘‘PART I—DESIGNATION

‘‘Sec. 1400E. Designation of renewal communities.

‘‘SEC. 1400E. DESIGNATION OF RENEWAL COMMUNITIES.

‘‘(a) DESIGNATION.— ‘‘(1) DEFINITIONS.—For purposes of this title, the term ‘renewal community’ means any area—

‘‘(A) which is nominated by 1 or more local governments and the State or States in which it is located for designation as a renewal community (hereafter in this section

referred to as a ‘nominated area’), and

‘‘(B) which the Secretary of Housing and Urban Development designates as a renewal community, after consultation with—

‘‘(i) the Secretaries of Agriculture, Commerce,

Labor, and the Treasury; the Director of the Office of

Management and Budget, and the Administrator of the

Small Business Administration, and

‘‘(ii) in the case of an area on an Indian reservation, the Secretary of the Interior.

‘‘(2) NUMBER OF DESIGNATIONS.—

‘‘(A) IN GENERAL.—Not more than 40 nominated areas

may be designated as renewal communities.

‘‘(B) MINIMUM DESIGNATION IN RURAL AREAS.—Of the

areas designated under paragraph (1), at least 12 must be

areas—

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‘‘(i) which are within a local government jurisdiction or jurisdictions with a population of less than

50,000,

‘‘(ii) which are outside of a metropolitan statistical

area (within the meaning of section 143(k)(2)(B)), or

‘‘(iii) which are determined by the Secretary of

Housing and Urban Development, after consultation

with the Secretary of Commerce, to be rural areas.

‘‘(3) AREAS DESIGNATED BASED ON DEGREE OF POVERTY, ETC.— ‘‘(A) IN GENERAL.—Except as otherwise provided in this

section, the nominated areas designated as renewal communities under this subsection shall be those nominated areas

with the highest average ranking with respect to the criteria described in subparagraphs (B), (C), and (D) of subsection (c)(3). For purposes of the preceding sentence, an

area shall be ranked within each such criterion on the

basis of the amount by which the area exceeds such criterion, with the area which exceeds such criterion by the

greatest amount given the highest ranking.

‘‘(B) EXCEPTION WHERE INADEQUATE COURSE OF AC- TION, 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—

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‘‘(i) the local governments and the States in which

the nominated area is located have the authority—

‘‘(I) to nominate such area for designation as

a renewal community,

‘‘(II) to make the State and local commitments

described in subsection (d), and

‘‘(III) to provide assurances satisfactory to the

Secretary of Housing and Urban Development that

such commitments will be fulfilled,

‘‘(ii) a nomination regarding such area is submitted in such a manner and in such form, and contains such information, as the Secretary of Housing

and Urban Development shall by regulation prescribe,

and

‘‘(iii) the Secretary of Housing and Urban Development determines that any information furnished is reasonably accurate.

‘‘(5) NOMINATION PROCESS FOR INDIAN RESERVATIONS.—For

purposes of this subchapter, in the case of a nominated area on

an Indian reservation, the reservation governing body (as determined by the Secretary of the Interior) shall be treated as being

both the State and local governments with respect to such area.

‘‘(b) PERIOD FOR WHICH DESIGNATION IS IN EFFECT.— ‘‘(1) IN GENERAL.—Any designation of an area as a renewal

community shall remain in effect during the period beginning

on January 1, 2002, and ending on the earliest of—

‘‘(A) December 31, 2009,

‘‘(B) the termination date designated by the State and

local governments in their nomination, or

‘‘(C) the date the Secretary of Housing and Urban Development revokes such designation.

‘‘(2) REVOCATION OF DESIGNATION.—The Secretary of Housing and Urban Development may revoke the designation under

this section of an area if such Secretary determines that the

local government or the State in which the area is located—

‘‘(A) has modified the boundaries of the area, or

‘‘(B) is not complying substantially with, or fails to

make progress in achieving, the State or local commitments, respectively, described in subsection (d).

‘‘(3) EARLIER TERMINATION OF CERTAIN BENEFITS IF EARLIER TERMINATION OF DESIGNATION.—If the designation of an

area as a renewal community terminates before December 31,

2009, the day after the date of such termination shall be substituted for ‘January 1, 2010’ each place it appears in sections

1400F and 1400J with respect to such area.

‘‘(c) AREA AND ELIGIBILITY REQUIREMENTS.—

‘‘(1) IN GENERAL.—The Secretary of Housing and Urban

Development may designate a nominated area as a renewal

community under subsection (a) only if the area meets the requirements of paragraphs (2) and (3) of this subsection.

‘‘(2) AREA REQUIREMENTS.—A nominated area meets the requirements of this paragraph if—

‘‘(A) the area is within the jurisdiction of one or more

local governments,

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‘‘(B) the boundary of the area is continuous, and

‘‘(C) the area—

‘‘(i) has a population of not more than 200,000 and

at least—

‘‘(I) 4,000 if any portion of such area (other

than a rural area described in subsection

(a)(2)(B)(i)) is located within a metropolitan statistical area (within the meaning of section

143(k)(2)(B)) which has a population of 50,000 or

greater, or

‘‘(II) 1,000 in any other case, or

‘‘(ii) is entirely within an Indian reservation (as

determined by the Secretary of the Interior).

‘‘(3) ELIGIBILITY REQUIREMENTS.—A nominated area meets

the requirements of this paragraph if the State and the local

governments in which it is located certify in writing (and the

Secretary of Housing and Urban Development, after such review of supporting data as he deems appropriate, accepts such

certification) that—

‘‘(A) the area is one of pervasive poverty, unemployment, and general distress,

‘‘(B) the unemployment rate in the area, as determined

by the most recent available data, was at least 11⁄2 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

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during which the area is a renewal community, such governments will follow a specified course of action which

meets the requirements of paragraph (2) and is designed to

reduce the various burdens borne by employers or employees in such area, and

‘‘(B) the economic growth promotion requirements of

paragraph (3) are met.

‘‘(2) COURSE OF ACTION.— ‘‘(A) IN GENERAL.—A course of action meets the requirements of this paragraph if such course of action is a written document, signed by a State (or local government) and

neighborhood organizations, which evidences a partnership

between such State or government and community-based

organizations and which commits each signatory to specific

and measurable goals, actions, and timetables. Such course

of action shall include at least 4 of the following:

‘‘(i) A reduction of tax rates or fees applying within

the renewal community.

‘‘(ii) An increase in the level of efficiency of local

services within the renewal community.

‘‘(iii) Crime reduction strategies, such as crime prevention (including the provision of crime prevention

services by nongovernmental entities).

‘‘(iv) Actions to reduce, remove, simplify, or streamline governmental requirements applying within the renewal community.

‘‘(v) Involvement in the program by private entities,

organizations, neighborhood organizations, and community groups, particularly those in the renewal community, including a commitment from such private entities to provide jobs and job training for, and technical, financial, or other assistance to, employers, employees, and residents from the renewal community.

‘‘(vi) The gift (or sale at below fair market value)

of surplus real property (such as land, homes, and

commercial or industrial structures) in the renewal

community to neighborhood organizations, community

development corporations, or private companies.

‘‘(B) RECOGNITION OF PAST EFFORTS.—For purposes of

this section, in evaluating the course of action agreed to by

any State or local government, the Secretary of Housing

and Urban Development shall take into account the past efforts of such State or local government in reducing the various burdens borne by employers and employees in the area

involved.

‘‘(3) ECONOMIC GROWTH PROMOTION REQUIREMENTS.—The

economic growth promotion requirements of this paragraph are

met with respect to a nominated area if the local government

and the State in which such area is located certify in writing

that such government and State (respectively) have repealed or

reduced, will not enforce, or will reduce within the nominated

area at least 4 of the following:

‘‘(A) Licensing requirements for occupations that do not

ordinarily require a professional degree.

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‘‘(B) Zoning restrictions on home-based businesses

which do not create a public nuisance.

‘‘(C) Permit requirements for street vendors who do not

create a public nuisance.

‘‘(D) Zoning or other restrictions that impede the formation of schools or child care centers.

‘‘(E) Franchises or other restrictions on competition for

businesses providing public services, including taxicabs, jitneys, cable television, or trash hauling.

This paragraph shall not apply to the extent that such regulation of businesses and occupations is necessary for and well-tailored to the protection of health and safety.

‘‘(e) COORDINATION WITH TREATMENT OF EMPOWERMENT ZONES

AND ENTERPRISE COMMUNITIES.—For purposes of this title, the designation under section 1391 of any area as an empowerment zone

or enterprise community shall cease to be in effect as of the date

that the designation of any portion of such area as a renewal community takes effect.

‘‘(f) DEFINITIONS AND SPECIAL RULES.—For purposes of this

subchapter—

‘‘(1) GOVERNMENTS.—If more than one government seeks to

nominate an area as a renewal community, any reference to, or

requirement of, this section shall apply to all such governments.

‘‘(2) LOCAL GOVERNMENT.—The term ‘local government’

means—

‘‘(A) any county, city, town, township, parish, village,

or other general purpose political subdivision of a State,

and

‘‘(B) any combination of political subdivisions described in subparagraph (A) recognized by the Secretary of

Housing and Urban Development.

‘‘(3) APPLICATION OF RULES RELATING TO CENSUS TRACTS.—

The rules of section 1392(b)(4) shall apply.

‘‘(4) CENSUS DATA.—Population and poverty rate shall be

determined by using 1990 census data.

‘‘PART II—RENEWAL COMMUNITY CAPITAL

GAIN; RENEWAL COMMUNITY BUSINESS

‘‘Sec. 1400F. Renewal community capital gain.

‘‘Sec. 1400G. Renewal community business defined.

‘‘SEC. 1400F. RENEWAL COMMUNITY CAPITAL GAIN.

‘‘(a) GENERAL RULE.—Gross income does not include any qualified capital gain from the sale or exchange of a qualified community

asset held for more than 5 years.

‘‘(b) QUALIFIED COMMUNITY ASSET.—For purposes of this

section—

‘‘(1) IN GENERAL.—The term ‘qualified community asset’

means—

‘‘(A) any qualified community stock,

‘‘(B) any qualified community partnership interest, and

‘‘(C) any qualified community business property.

‘‘(2) QUALIFIED COMMUNITY STOCK.—

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‘‘(A) IN GENERAL.—Except as provided in subparagraph

(B), the term ‘qualified community stock’ means any stock

in a domestic corporation if—

‘‘(i) such stock is acquired by the taxpayer after December 31, 2001, and before January 1, 2010, at its

original issue (directly or through an underwriter)

from the corporation solely in exchange for cash,

‘‘(ii) as of the time such stock was issued, such corporation was a renewal community business (or, in the

case of a new corporation, such corporation was being

organized for purposes of being a renewal community

business), and

‘‘(iii) during substantially all of the taxpayer’s

holding period for such stock, such corporation qualified as a renewal community business.

‘‘(B) REDEMPTIONS.—A rule similar to the rule of section 1202(c)(3) shall apply for purposes of this paragraph.

‘‘(3) QUALIFIED COMMUNITY PARTNERSHIP INTEREST.—The

term ‘qualified community partnership interest’ means any capital or profits interest in a domestic partnership if—

‘‘(A) such interest is acquired by the taxpayer after December 31, 2001, and before January 1, 2010, from the

partnership solely in exchange for cash,

‘‘(B) as of the time such interest was acquired, such

partnership was a renewal community business (or, in the

case of a new partnership, such partnership was being organized for purposes of being a renewal community business), and

‘‘(C) during substantially all of the taxpayer’s holding

period for such interest, such partnership qualified as a renewal community business.

A rule similar to the rule of paragraph (2)(B) shall apply for

purposes of this paragraph.

‘‘(4) QUALIFIED COMMUNITY BUSINESS PROPERTY.—

‘‘(A) IN GENERAL.—The term ‘qualified community

business property’ means tangible property if—

‘‘(i) such property was acquired by the taxpayer by

purchase (as defined in section 179(d)(2)) after December 31, 2001, and before January 1, 2010,

‘‘(ii) the original use of such property in the renewal community commences with the taxpayer, and

‘‘(iii) during substantially all of the taxpayer’s

holding period for such property, substantially all of

the use of such property was in a renewal community

business of the taxpayer.

‘‘(B) SPECIAL RULE FOR SUBSTANTIAL IMPROVEMENTS.—

The requirements of clauses (i) and (ii) of subparagraph (A)

shall be treated as satisfied with respect to—

‘‘(i) property which is substantially improved by

the taxpayer before January 1, 2010, and

‘‘(ii) any land on which such property is located.

The determination of whether a property is substantially

improved shall be made under clause (ii) of section

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1400B(b)(4)(B), except that ‘December 31, 2001’ shall be

substituted for ‘December 31, 1997’ in such clause.

‘‘(c) QUALIFIED CAPITAL GAIN.—For purposes of this section—

‘‘(1) IN GENERAL.—Except as otherwise provided in this subsection, the term ‘qualified capital gain’ means any gain recognized on the sale or exchange of—

‘‘(A) a capital asset, or

‘‘(B) property used in the trade or business (as defined

in section 1231(b)).

‘‘(2) GAIN BEFORE 2002 OR AFTER 2014 NOT QUALIFIED.—The

term ‘qualified capital gain’ shall not include any gain attributable to periods before January 1, 2002, or after December 31,

2014.

‘‘(3) CERTAIN RULES TO APPLY.—Rules similar to the rules

of paragraphs (3), (4), and (5) of section 1400B(e) shall apply

for purposes of this subsection.

‘‘(d) CERTAIN RULES TO APPLY.—For purposes of this section,

rules similar to the rules of paragraphs (5), (6), and (7) of subsection (b), and subsections (f) and (g), of section 1400B shall apply;

except that for such purposes section 1400B(g)(2) shall be applied by

substituting ‘January 1, 2002’ for ‘January 1, 1998’ and ‘December

31, 2014’ for ‘December 31, 2008’.

‘‘(e) REGULATIONS.—The Secretary shall prescribe such regulations as may be appropriate to carry out the purposes of this section,

including regulations to prevent the abuse of the purposes of this

section.

‘‘SEC. 1400G. RENEWAL COMMUNITY BUSINESS DEFINED.

‘‘For purposes of this subchapter, the term ‘renewal community

business’ means any entity or proprietorship which would be a

qualified business entity or qualified proprietorship under section

1397C if references to renewal communities were substituted for references to empowerment zones in such section.

‘‘PART III—ADDITIONAL INCENTIVES

‘‘Sec. 1400H. Renewal community employment credit.

‘‘Sec. 1400I. Commercial revitalization deduction.

‘‘Sec. 1400J. Increase in expensing under section 179.

‘‘SEC. 1400H. RENEWAL COMMUNITY EMPLOYMENT CREDIT.

‘‘(a) IN GENERAL.—Subject to the modification in subsection (b),

a renewal community shall be treated as an empowerment zone for

purposes of section 1396 with respect to wages paid or incurred

after December 31, 2001.

‘‘(b) MODIFICATION.—In applying section 1396 with respect to

renewal communities—

‘‘(1) the applicable percentage shall be 15 percent, and

‘‘(2) subsection (c) thereof shall be applied by substituting

‘$10,000’ for ‘$15,000’ each place it appears.

‘‘SEC. 1400I. COMMERCIAL REVITALIZATION DEDUCTION.

‘‘(a) GENERAL RULE.—At the election of the taxpayer, either—

‘‘(1) one-half of any qualified revitalization expenditures

chargeable to capital account with respect to any qualified reviVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00924 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.008 pfrm03 PsN: HR1033
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talization building shall be allowable as a deduction for the

taxable year in which the building is placed in service, or

‘‘(2) a deduction for all such expenditures shall be allowable ratably over the 120-month period beginning with the

month in which the building is placed in service.

‘‘(b) QUALIFIED REVITALIZATION BUILDINGS AND EXPENDITURES.—For purposes of this section—

‘‘(1) QUALIFIED REVITALIZATION BUILDING.—The term

‘qualified revitalization building’ means any building (and its

structural components) if—

‘‘(A) the building is placed in service by the taxpayer in

a renewal community and the original use of the building

begins with the taxpayer, or

‘‘(B) in the case of such building not described in subparagraph (A), such building—

‘‘(i) is substantially rehabilitated (within the meaning of section 47(c)(1)(C)) by the taxpayer, and

‘‘(ii) is placed in service by the taxpayer after the

rehabilitation in a renewal community.

‘‘(2) QUALIFIED REVITALIZATION EXPENDITURE.—

‘‘(A) IN GENERAL.—The term ‘qualified revitalization

expenditure’ means any amount properly chargeable to capital account for property for which depreciation is allowable

under section 168 (without regard to this section) and

which is—

‘‘(i) nonresidential real property (as defined in section 168(e)), or

‘‘(ii) section 1250 property (as defined in section

1250(c)) which is functionally related and subordinate

to property described in clause (i).

‘‘(B) CERTAIN EXPENDITURES NOT INCLUDED.—

‘‘(i) ACQUISITION COST.—In the case of a building

described in paragraph (1)(B), the cost of acquiring the

building or interest therein shall be treated as a qualified revitalization expenditure only to the extent that

such cost does not exceed 30 percent of the aggregate

qualified revitalization expenditures (determined without regard to such cost) with respect to such building.

‘‘(ii) CREDITS.—The term ‘qualified revitalization

expenditure’ does not include any expenditure which

the taxpayer may take into account in computing any

credit allowable under this title unless the taxpayer

elects to take the expenditure into account only for purposes of this section.

‘‘(c) DOLLAR LIMITATION.—The aggregate amount which may be

treated as qualified revitalization expenditures with respect to any

qualified revitalization building shall not exceed the lesser of—

‘‘(1) $10,000,000, or

‘‘(2) the commercial revitalization expenditure amount allocated to such building under this section by the commercial revitalization agency for the State in which the building is located.

‘‘(d) COMMERCIAL REVITALIZATION EXPENDITURE AMOUNT.—

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‘‘(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 AGEN- CIES.— ‘‘(1) PLANS FOR ALLOCATION.—Notwithstanding any other

provision of this section, the commercial revitalization expenditure amount with respect to any building shall be zero unless—

‘‘(A) such amount was allocated pursuant to a qualified

allocation plan of the commercial revitalization agency

which is approved (in accordance with rules similar to the

rules of section 147(f )(2) (other than subparagraph (B)(ii)

thereof)) by the governmental unit of which such agency is

a part, and

‘‘(B) such agency notifies the chief executive officer (or

its equivalent) of the local jurisdiction within which the

building is located of such allocation and provides such individual a reasonable opportunity to comment on the allocation.

‘‘(2) QUALIFIED ALLOCATION PLAN.—For purposes of this

subsection, the term ‘qualified allocation plan’ means any

plan—

‘‘(A) which sets forth selection criteria to be used to determine priorities of the commercial revitalization agency

which are appropriate to local conditions,

‘‘(B) which considers—

‘‘(i) the degree to which a project contributes to the

implementation of a strategic plan that is devised for

a renewal community through a citizen participation

process,

‘‘(ii) the amount of any increase in permanent, fulltime 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.—

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‘‘(1) DEDUCTION IN LIEU OF DEPRECIATION.—The deduction

provided by this section for qualified revitalization expenditures

shall—

‘‘(A) with respect to the deduction determined under

subsection (a)(1), be in lieu of any depreciation deduction

otherwise allowable on account of one-half of such expenditures, and

‘‘(B) with respect to the deduction determined under

subsection (a)(2), be in lieu of any depreciation deduction

otherwise allowable on account of all of such expenditures.

‘‘(2) BASIS ADJUSTMENT, ETC.—For purposes of sections

1016 and 1250, the deduction under this section shall be treated in the same manner as a depreciation deduction. For purposes of section 1250(b)(5), the straight line method of adjustment shall be determined without regard to this section.

‘‘(3) SUBSTANTIAL REHABILITATIONS TREATED AS SEPARATE

BUILDINGS.—A substantial rehabilitation (within the meaning

of section 47(c)(1)(C)) of a building shall be treated as a separate building for purposes of subsection (a).

‘‘(4) CLARIFICATION OF ALLOWANCE OF DEDUCTION UNDER

MINIMUM TAX.—Notwithstanding section 56(a)(1), the deduction

under this section shall be allowed in determining alternative

minimum taxable income under section 55.

‘‘(g) TERMINATION.—This section shall not apply to any building

placed in service after December 31, 2009.

‘‘SEC. 1400J. INCREASE IN EXPENSING UNDER SECTION 179.

‘‘(a) IN GENERAL.—For purposes of section 1397A—

‘‘(1) a renewal community shall be treated as an empowerment zone,

‘‘(2) a renewal community business shall be treated as an

enterprise zone business, and

‘‘(3) qualified renewal property shall be treated as qualified

zone property.

‘‘(b) QUALIFIED RENEWAL PROPERTY.—For purposes of this

section—

‘‘(1) IN GENERAL.—The term ‘qualified renewal property’

means any property to which section 168 applies (or would

apply but for section 179) if—

‘‘(A) such property was acquired by the taxpayer by

purchase (as defined in section 179(d)(2)) after December

31, 2001, and before January 1, 2010, and

‘‘(B) such property would be qualified zone property (as

defined in section 1397D) if references to renewal communities were substituted for references to empowerment zones

in section 1397D.

‘‘(2) CERTAIN RULES TO APPLY.—The rules of subsections

(a)(2) and (b) of section 1397D shall apply for purposes of this

section.’’.

(b) EXCEPTION FOR COMMERCIAL REVITALIZATION DEDUCTION

FROM PASSIVE LOSS RULES.—

(1) Paragraph (3) of section 469(i) is amended by redesignating subparagraphs (C), (D), and (E) as subparagraphs (D),

(E), and (F), respectively, and by inserting after subparagraph

(B) the following new subparagraph:

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‘‘(C) EXCEPTION FOR COMMERCIAL REVITALIZATION DEDUCTION.—Subparagraph (A) shall not apply to any portion of the passive activity loss for any taxable year which

is attributable to the commercial revitalization deduction

under section 1400I.’’.

(2) Subparagraph (E) of section 469(i)(3), as redesignated

by subparagraph (A), is amended to read as follows:

‘‘(E) ORDERING RULES TO REFLECT EXCEPTIONS AND

SEPARATE PHASE-OUTS.—If subparagraph (B), (C), or (D)

applies for a taxable year, paragraph (1) shall be applied—

‘‘(i) first to the portion of the passive activity loss

to which subparagraph (C) does not apply,

‘‘(ii) second to the portion of the passive activity

credit to which subparagraph (B) or (D) does not

apply,

‘‘(iii) third to the portion of such credit to which

subparagraph (B) applies,

‘‘(iv) fourth to the portion of such loss to which

subparagraph (C) applies, and

‘‘(v) then to the portion of such credit to which subparagraph (D) applies.’’.

(3)(A) Subparagraph (B) of section 469(i)(6) is amended by

striking ‘‘or’’ at the end of clause (i), by striking the period at

the end of clause (ii) and inserting ‘‘, or’’, and by adding at the

end the following new clause:

‘‘(iii) any deduction under section 1400I (relating

to commercial revitalization deduction).’’.

(B) The heading for such subparagraph (B) is amended by

striking ‘‘OR REHABILITATION CREDIT’’ and inserting ‘‘, REHABILITATION CREDIT, OR COMMERCIAL REVITALIZATION DEDUCTION’’.

(c) AUDIT AND REPORT.—Not later than January 31 of 2004,

2007, and 2010, the Comptroller General of the United States shall,

pursuant to an audit of the renewal community program established under section 1400E of the Internal Revenue Code of 1986 (as

added by subsection (a)) and the empowerment zone and enterprise

community program under subchapter U of chapter 1 of such Code,

report to Congress on such program and its effect on poverty, unemployment, and economic growth within the designated renewal communities, empowerment zones, and enterprise communities.

(d) CLERICAL AMENDMENT.—The table of subchapters for chapter 1 is amended by adding at the end the following new item:

‘‘Subchapter X. Renewal Communities.’’.

SEC. 102. WORK OPPORTUNITY CREDIT FOR HIRING YOUTH RESIDING

IN RENEWAL COMMUNITIES.

(a) HIGH-RISK YOUTH.—Subparagraphs (A)(ii) and (B) of section 51(d)(5) are each amended by striking ‘‘empowerment zone or

enterprise community’’ and inserting ‘‘empowerment zone, enterprise

community, or renewal community’’.

(b) QUALIFIED SUMMER YOUTH EMPLOYEE.—Clause (iv) of section 51(d)(7)(A) is amended by striking ‘‘empowerment zone or enterprise community’’ and inserting ‘‘empowerment zone, enterprise community, or renewal community’’.

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(c) HEADINGS.—Paragraphs (5)(B) and (7)(C) of section 51(d)

are each amended by inserting ‘‘OR COMMUNITY’’ in the heading

after ‘‘ZONE’’.

(d) EFFECTIVE DATE.—The amendments made by this section

shall apply to individuals who begin work for the employer after December 31, 2001.

Subtitle B—Extension and Expansion of Empowerment Zone

Incentives

SEC. 111. AUTHORITY TO DESIGNATE 9 ADDITIONAL EMPOWERMENT

ZONES.

Section 1391 is amended by adding at the end the following

new subsection:

‘‘(h) ADDITIONAL DESIGNATIONS PERMITTED.—

‘‘(1) IN GENERAL.—In addition to the areas designated

under subsections (a) and (g), the appropriate Secretaries may

designate in the aggregate an additional 9 nominated areas as

empowerment zones under this section, subject to the availability of eligible nominated areas. Of that number, not more

than seven may be designated in urban areas and not more

than 2 may be designated in rural areas.

‘‘(2) PERIOD DESIGNATIONS MAY BE MADE AND TAKE EFFECT.—A designation may be made under this subsection after

the date of the enactment of this subsection and before January

1, 2002. Subject to subparagraphs (B) and (C) of subsection

(d)(1), such designations shall remain in effect during the period beginning on January 1, 2002, and ending on December

31, 2009.

‘‘(3) MODIFICATIONS TO ELIGIBILITY CRITERIA, ETC.—The

rules of subsection (g)(3) shall apply to designations under this

subsection.

‘‘(4) EMPOWERMENT ZONES WHICH BECOME RENEWAL COMMUNITIES.—The number of areas which may be designated as

empowerment zones under this subsection shall be increased by

1 for each area which ceases to be an empowerment zone by reason of section 1400E(e). Each additional area designated by

reason of the preceding sentence shall have the same urban or

rural character as the area it is replacing.’’

SEC. 112. EXTENSION OF EMPOWERMENT ZONE TREATMENT

THROUGH 2009.

Subparagraph (A) of section 1391(d)(1) (relating to period for

which designation is in effect) is amended to read as follows:

‘‘(A)(i) in the case of an empowerment zone, December

31, 2009, or

‘‘(ii) in the case of an enterprise community, the close

of the 10th calendar year beginning on or after such date

of designation,’’.

SEC. 113. 20 PERCENT EMPLOYMENT CREDIT FOR ALL EMPOWERMENT

ZONES.

(a) 20 PERCENT CREDIT.—Subsection (b) of section 1396 (relating to empowerment zone employment credit) is amended to read as

follows:

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‘‘(b) APPLICABLE PERCENTAGE.—For purposes of this section, the

applicable percentage is 20 percent.’’.

(b) ALL EMPOWERMENT ZONES ELIGIBLE FOR CREDIT.—Section

1396 is amended by striking subsection (e).

(c) CONFORMING AMENDMENT.—Subsection (d) of section 1400

is amended to read as follows:

‘‘(d) SPECIAL RULE FOR APPLICATION OF EMPLOYMENT CREDIT.—With respect to the DC Zone, section 1396(d)(1)(B) (relating to

empowerment zone employment credit) shall be applied by substituting ‘the District of Columbia’ for ‘such empowerment zone’.’’.

(d) EFFECTIVE DATE.—The amendments made by this section

shall apply to wages paid or incurred after December 31, 2001.

SEC. 114. INCREASED EXPENSING UNDER SECTION 179.

(a) IN GENERAL.—Subparagraph (A) of section 1397A(a)(1) is

amended by striking ‘‘$20,000’’ and inserting ‘‘$35,000’’.

(b) EXPENSING FOR PROPERTY USED IN DEVELOPABLE SITES.—

Section 1397A is amended by striking subsection (c).

(c) EFFECTIVE DATE.—The amendments made by this section

shall apply to taxable years beginning after December 31, 2001.

SEC. 115. HIGHER LIMITS ON TAX-EXEMPT EMPOWERMENT ZONE FACILITY BONDS.

(a) IN GENERAL.—Paragraph (3) of section 1394(f) (relating to

bonds for empowerment zones designated under section 1391(g)) is

amended to read as follows:

‘‘(3) EMPOWERMENT ZONE FACILITY BOND.—For purposes of

this subsection, the term ‘empowerment zone facility bond’

means any bond which would be described in subsection (a) if—

‘‘(A) in the case of obligations issued before January 1,

2002, only empowerment zones designated under section

1391(g) were taken into account under sections 1397C and

1397D, and

‘‘(B) in the case of obligations issued after December 31,

2001, all empowerment zones (other than the District of Columbia Enterprise Zone) were taken into account under sections 1397C and 1397D.’’.

(b) EFFECTIVE DATE.—The amendments made by this section

shall apply to obligations issued after December 31, 2001.

SEC. 116. NONRECOGNITION OF GAIN ON ROLLOVER OF EMPOWERMENT ZONE INVESTMENTS.

(a) IN GENERAL.—Part III of subchapter U of chapter 1 is

amended—

(1) by redesignating subpart C as subpart D,

(2) by redesignating sections 1397B and 1397C as sections

1397C and 1397D, respectively, and

(3) by inserting after subpart B the following new subpart:

‘‘Subpart C—Nonrecognition of Gain on Rollover

of Empowerment Zone Investments

‘‘Sec. 1397B. Nonrecognition of gain on rollover of empowerment zone

investments.

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‘‘SEC. 1397B. NONRECOGNITION OF GAIN ON ROLLOVER OF EMPOWERMENT ZONE INVESTMENTS.

‘‘(a) NONRECOGNITION OF GAIN.—In the case of any sale of a

qualified empowerment zone asset held by the taxpayer for more

than 1 year and with respect to which such taxpayer elects the application of this section, gain from such sale shall be recognized

only to the extent that the amount realized on such sale exceeds—

‘‘(1) the cost of any qualified empowerment zone asset (with

respect to the same zone as the asset sold) purchased by the taxpayer during the 60-day period beginning on the date of such

sale, reduced by

‘‘(2) any portion of such cost previously taken into account

under this section.

‘‘(b) DEFINITIONS AND SPECIAL RULES.—For purposes of this

section—

‘‘(1) QUALIFIED EMPOWERMENT ZONE ASSET.—

‘‘(A) IN GENERAL.—The term ‘qualified empowerment

zone asset’ means any property which would be a qualified

community asset (as defined in section 1400F) if in section

1400F—

‘‘(i) references to empowerment zones were substituted for references to renewal communities,

‘‘(ii) references to enterprise zone businesses (as defined in section 1397C) were substituted for references

to renewal community businesses, and

‘‘(iii) the date of the enactment of this paragraph

were substituted for ‘December 31, 2001’ each place it

appears.

‘‘(B) TREATMENT OF DC ZONE.—The District of Columbia Enterprise Zone shall not be treated as an empowerment zone for purposes of this section.

‘‘(2) CERTAIN GAIN NOT ELIGIBLE FOR ROLLOVER.—This section shall not apply to—

‘‘(A) any gain which is treated as ordinary income for

purposes of this subtitle, and

‘‘(B) any gain which is attributable to real property, or

an intangible asset, which is not an integral part of an enterprise zone business.

‘‘(3) PURCHASE.—A taxpayer shall be treated as having purchased any property if, but for paragraph (4), the unadjusted

basis of such property in the hands of the taxpayer would be its

cost (within the meaning of section 1012).

‘‘(4) BASIS ADJUSTMENTS.—If gain from any sale is not recognized by reason of subsection (a), such gain shall be applied

to reduce (in the order acquired) the basis for determining gain

or loss of any qualified empowerment zone asset which is purchased by the taxpayer during the 60-day period described in

subsection (a). This paragraph shall not apply for purposes of

section 1202.

‘‘(5) HOLDING PERIOD.—For purposes of determining whether the nonrecognition of gain under subsection (a) applies to

any qualified empowerment zone asset which is sold—

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‘‘(A) the taxpayer’s holding period for such asset and

the asset referred to in subsection (a)(1) shall be determined

without regard to section 1223, and

‘‘(B) only the first year of the taxpayer’s holding period

for the asset referred to in subsection (a)(1) shall be taken

into account for purposes of paragraphs (2)(A)(iii), (3)(C),

and (4)(A)(iii) of section 1400F(b).’’.

(b) CONFORMING AMENDMENTS.—

(1) Paragraph (23) of section 1016(a) is amended—

(A) by striking ‘‘or 1045’’ and inserting ‘‘1045, or

1397B’’, and

(B) by striking ‘‘or 1045(b)(4)’’ and inserting

‘‘1045(b)(4), or 1397B(b)(4)’’.

(2) Paragraph (15) of section 1223 is amended to read as

follows:

‘‘(15) Except for purposes of sections 1202(a)(2),

1202(c)(2)(A), 1400B(b), and 1400F(b), in determining the period for which the taxpayer has held property the acquisition of

which resulted under section 1045 or 1397B in the nonrecognition of any part of the gain realized on the sale of other property, there shall be included the period for which such other

property has been held as of the date of such sale.’’.

(3) Paragraph (2) of section 1394(b) is amended—

(A) by striking ‘‘section 1397C’’ and inserting ‘‘section

1397D’’, and

(B) by striking ‘‘section 1397C(a)(2)’’ and inserting ‘‘section 1397D(a)(2)’’.

(4) Paragraph (3) of section 1394(b) is amended—

(A) by striking ‘‘section 1397B’’ each place it appears

and inserting ‘‘section 1397C’’, and

(B) by striking ‘‘section 1397B(d)’’ and inserting ‘‘section 1397C(d)’’.

(5) Sections 1400(e) and 1400B(c) are each amended by

striking ‘‘section 1397B’’ each place it appears and inserting

‘‘section 1397C’’.

(6) The table of subparts for part III of subchapter U of

chapter 1 is amended by striking the last item and inserting the

following new items:

‘‘Subpart C. Nonrecognition of gain on rollover of empowerment zone

investments.

‘‘Subpart D. General provisions.’’.

(7) The table of sections for subpart D of such part III is

amended to read as follows:

‘‘Sec. 1397C. Enterprise zone business defined.

‘‘Sec. 1397D. Qualified zone property defined.’’.

(c) EFFECTIVE DATE.—The amendments made by this section

shall apply to qualified empowerment zone assets acquired after the

date of the enactment of this Act.

SEC. 117. INCREASED EXCLUSION OF GAIN ON SALE OF EMPOWERMENT ZONE STOCK.

(a) IN GENERAL.—Subsection (a) of section 1202 is amended to

read as follows:

‘‘(a) EXCLUSION.—

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‘‘(1) IN GENERAL.—In the case of a taxpayer other than a

corporation, gross income shall not include 50 percent of any

gain from the sale or exchange of qualified small business stock

held for more than 5 years.

‘‘(2) EMPOWERMENT ZONE BUSINESSES.—

‘‘(A) IN GENERAL.—In the case of qualified small business stock acquired after the date of the enactment of this

paragraph in a corporation which is a qualified business

entity (as defined in section 1397C(b)) during substantially

all of the taxpayer’s holding period for such stock, paragraph (1) shall be applied by substituting ‘60 percent’ for

‘50 percent’.

‘‘(B) CERTAIN RULES TO APPLY.—Rules similar to the

rules of paragraphs (5) and (7) of section 1400B(b) shall

apply for purposes of this paragraph.

‘‘(C) GAIN AFTER 2014 NOT QUALIFIED.—Subparagraph

(A) shall not apply to gain attributable to periods after December 31, 2014.

‘‘(D) TREATMENT OF DC ZONE.—The District of Columbia Enterprise Zone shall not be treated as an empowerment zone for purposes of this paragraph.’’.

(b) CONFORMING AMENDMENTS.—

(1) Paragraph (8) of section 1(h) is amended by striking

‘‘means’’ and all that follows and inserting ‘‘means the excess

of—

‘‘(A) the gain which would be excluded from gross income under section 1202 but for the percentage limitation

in section 1202(a), over

‘‘(B) the gain excluded from gross income under section

1202.’’.

(2) The section heading for section 1202 is amended by

striking ‘‘50-PERCENT’’ and inserting ‘‘PARTIAL’’.

(3) The table of sections for part I of subchapter P of chapter 1 is amended by striking ‘‘50-percent’’ and inserting ‘‘Partial’’.

(c) EFFECTIVE DATE.—The amendments made by this section

shall apply to stock acquired after the date of the enactment of this

Act.

Subtitle C—New Markets Tax Credit

SEC. 121. NEW MARKETS TAX CREDIT.

(a) IN GENERAL.—Subpart D of part IV of subchapter A of

chapter 1 (relating to business-related credits) is amended by adding at the end the following new section:

‘‘SEC. 45D. NEW MARKETS TAX CREDIT.

‘‘(a) ALLOWANCE OF CREDIT.—

‘‘(1) IN GENERAL.—For purposes of section 38, in the case of

a taxpayer who holds a qualified equity investment on a credit

allowance date of such investment which occurs during the taxable year, the new markets tax credit determined under this section for such taxable year is an amount equal to the applicable

percentage of the amount paid to the qualified community development entity for such investment at its original issue.

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‘‘(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 lowincome community investments, and

‘‘(C) such investment is designated for purposes of this

section by the qualified community development entity.

Such term shall not include any equity investment issued by a

qualified community development entity more than 5 years after

the date that such entity receives an allocation under subsection

(f). Any allocation not used within such 5-year period may be

reallocated by the Secretary under subsection (f).

‘‘(2) LIMITATION.—The maximum amount of equity investments issued by a qualified community development entity

which may be designated under paragraph (1)(C) by such entity

shall not exceed the portion of the limitation amount allocated

under subsection (f) to such entity.

‘‘(3) SAFE HARBOR FOR DETERMINING USE OF CASH.—The requirement of paragraph (1)(B) shall be treated as met if at least

85 percent of the aggregate gross assets of the qualified community development entity are invested in qualified low-income

community investments.

‘‘(4) TREATMENT OF SUBSEQUENT PURCHASERS.—The term

‘qualified equity investment’ includes any equity investment

which would (but for paragraph (1)(A)) be a qualified equity investment in the hands of the taxpayer if such investment was

a qualified equity investment in the hands of a prior holder.

‘‘(5) REDEMPTIONS.—A rule similar to the rule of section

1202(c)(3) shall apply for purposes of this subsection.

‘‘(6) EQUITY INVESTMENT.—The term ‘equity investment’

means—

‘‘(A) any stock (other than nonqualified preferred stock

as defined in section 351(g)(2)) in an entity which is a corporation, and

931

‘‘(B) any capital interest in an entity which is a partnership.

‘‘(c) QUALIFIED COMMUNITY DEVELOPMENT ENTITY.—For purposes of this section—

‘‘(1) IN GENERAL.—The term ‘qualified community development entity’ means any domestic corporation or partnership if—

‘‘(A) the primary mission of the entity is serving, or

providing investment capital for, low-income communities

or low-income persons,

‘‘(B) the entity maintains accountability to residents of

low-income communities through their representation on

any governing board of the entity or on any advisory board

to the entity, and

‘‘(C) the entity is certified by the Secretary for purposes

of this section as being a qualified community development

entity.

‘‘(2) SPECIAL RULES FOR CERTAIN ORGANIZATIONS.—The requirements of paragraph (1) shall be treated as met by—

‘‘(A) any specialized small business investment company (as defined in section 1044(c)(3)), and

‘‘(B) any community development financial institution

(as defined in section 103 of the Community Development

Banking and Financial Institutions Act of 1994 (12 U.S.C.

4702)).

‘‘(d) QUALIFIED LOW-INCOME COMMUNITY INVESTMENTS.—For

purposes of this section—

‘‘(1) IN GENERAL.—The term ‘qualified low-income community investment’ means—

‘‘(A) any capital or equity investment in, or loan to, any

qualified active low-income community business,

‘‘(B) the purchase from another qualified community

development entity of any loan made by such entity which

is a qualified low-income community investment,

‘‘(C) financial counseling and other services specified in

regulations prescribed by the Secretary to businesses located in, and residents of, low-income communities, and

‘‘(D) any equity investment in, or loan to, any qualified

community development entity.

‘‘(2) QUALIFIED ACTIVE LOW-INCOME COMMUNITY BUSINESS.—

‘‘(A) IN GENERAL.—For purposes of paragraph (1), the

term ‘qualified active low-income community business’

means, with respect to any taxable year, any corporation

(including a nonprofit corporation) or partnership if for

such year—

‘‘(i) at least 50 percent of the total gross income of

such entity is derived from the active conduct of a

qualified business within any low-income community,

‘‘(ii) a substantial portion of the use of the tangible

property of such entity (whether owned or leased) is

within any low-income community,

‘‘(iii) a substantial portion of the services performed for such entity by its employees are performed

in any low-income community,

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‘‘(iv) less than 5 percent of the average of the aggregate unadjusted bases of the property of such entity is

attributable to collectibles (as defined in section

408(m)(2)) other than collectibles that are held primarily for sale to customers in the ordinary course of

such business, and

‘‘(v) less than 5 percent of the average of the aggregate unadjusted bases of the property of such entity is

attributable to nonqualified financial property (as defined in section 1397C(e)).

‘‘(B) PROPRIETORSHIP.—Such term shall include any

business carried on by an individual as a proprietor if such

business would meet the requirements of subparagraph (A)

were it incorporated.

‘‘(C) PORTIONS OF BUSINESS MAY BE QUALIFIED ACTIVE

LOW-INCOME COMMUNITY BUSINESS.—The term ‘qualified

active low-income community business’ includes any trades

or businesses which would qualify as a qualified active

low-income community business if such trades or businesses were separately incorporated.

‘‘(3) QUALIFIED BUSINESS.—For purposes of this subsection,

the term ‘qualified business’ has the meaning given to such

term by section 1397C(d); except that—

‘‘(A) in lieu of applying paragraph (2)(B) thereof, the

rental to others of real property located in any low-income

community shall be treated as a qualified business if there

are substantial improvements located on such property, and

‘‘(B) paragraph (3) thereof shall not apply.

‘‘(e) LOW-INCOME COMMUNITY.—For purposes of this section—

‘‘(1) IN GENERAL.—The term ‘low-income community’ means

any population census tract if—

‘‘(A) the poverty rate for such tract is at least 20 percent, or

‘‘(B)(i) in the case of a tract not located within a metropolitan area, the median family income for such tract does

not exceed 80 percent of statewide median family income,

or

‘‘(ii) in the case of a tract located within a metropolitan

area, the median family income for such tract does not exceed 80 percent of the greater of statewide median family

income or the metropolitan area median family income.

Subparagraph (B) shall be applied using possessionwide median family income in the case of census tracts located within

a possession of the United States.

‘‘(2) TARGETED AREAS.—The Secretary may designate any

area within any census tract as a low-income community if—

‘‘(A) the boundary of such area is continuous,

‘‘(B) the area would satisfy the requirements of paragraph (1) if it were a census tract, and

‘‘(C) an inadequate access to investment capital exists

in such area.

‘‘(3) AREAS NOT WITHIN CENSUS TRACTS.—In the case of an

area which is not tracted for population census tracts, the

equivalent county divisions (as defined by the Bureau of the

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Census for purposes of defining poverty areas) shall be used for

purposes of determining poverty rates and median family income.

‘‘(f) NATIONAL LIMITATION ON AMOUNT OF INVESTMENTS DESIGNATED.—

‘‘(1) IN GENERAL.—There is a new markets tax credit limitation for each calendar year. Such limitation is—

‘‘(A) $1,000,000,000 for 2001,

‘‘(B) $1,500,000,000 for 2002 and 2003,

‘‘(C) $2,000,000,000 for 2004 and 2005, and

‘‘(D) $3,500,000,000 for 2006 and 2007.

‘‘(2) ALLOCATION OF LIMITATION.—The limitation under

paragraph (1) shall be allocated by the Secretary among qualified community development entities selected by the Secretary.

In making allocations under the preceding sentence, the Secretary shall give priority to any entity—

‘‘(A) with a record of having successfully provided capital or technical assistance to disadvantaged businesses or

communities, or

‘‘(B) which intends to satisfy the requirement under

subsection (b)(1)(B) by making qualified low-income community investments in 1 or more businesses in which persons unrelated to such entity (within the meaning of section

267(b) or 707(b)(1)) hold the majority equity interest.

‘‘(3) CARRYOVER OF UNUSED LIMITATION.—If the new markets tax credit limitation for any calendar year exceeds the aggregate amount allocated under paragraph (2) for such year,

such limitation for the succeeding calendar year shall be increased by the amount of such excess. No amount may be carried under the preceding sentence to any calendar year after

2014.

‘‘(g) RECAPTURE OF CREDIT IN CERTAIN CASES.—

‘‘(1) IN GENERAL.—If, at any time during the 7-year period

beginning on the date of the original issue of a qualified equity

investment in a qualified community development entity, there

is a recapture event with respect to such investment, then the

tax imposed by this chapter for the taxable year in which such

event occurs shall be increased by the credit recapture amount.

‘‘(2) CREDIT RECAPTURE AMOUNT.—For purposes of paragraph (1), the credit recapture amount is an amount equal to

the sum of—

‘‘(A) the aggregate decrease in the credits allowed to the

taxpayer under section 38 for all prior taxable years which

would have resulted if no credit had been determined under

this section with respect to such investment, plus

‘‘(B) interest at the underpayment rate established

under section 6621 on the amount determined under subparagraph (A) for each prior taxable year for the period beginning on the due date for filing the return for the prior

taxable year involved.

No deduction shall be allowed under this chapter for interest

described in subparagraph (B).

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‘‘(3) RECAPTURE EVENT.—For purposes of paragraph (1),

there is a recapture event with respect to an equity investment

in a qualified community development entity if—

‘‘(A) such entity ceases to be a qualified community development entity,

‘‘(B) the proceeds of the investment cease to be used as

required of subsection (b)(1)(B), or

‘‘(C) such investment is redeemed by such entity.

‘‘(4) SPECIAL RULES.—

‘‘(A) TAX BENEFIT RULE.—The tax for the taxable year

shall be increased under paragraph (1) only with respect to

credits allowed by reason of this section which were used

to reduce tax liability. In the case of credits not so used to

reduce tax liability, the carryforwards and carrybacks

under section 39 shall be appropriately adjusted.

‘‘(B) NO CREDITS AGAINST TAX.—Any increase in tax

under this subsection shall not be treated as a tax imposed

by this chapter for purposes of determining the amount of

any credit under this chapter or for purposes of section 55.

‘‘(h) BASIS REDUCTION.—The basis of any qualified equity investment shall be reduced by the amount of any credit determined

under this section with respect to such investment. This subsection

shall not apply for purposes of sections 1202, 1400B, and 1400F.

‘‘(i) REGULATIONS.—The Secretary shall prescribe such regulations as may be appropriate to carry out this section, including

regulations—

‘‘(1) which limit the credit for investments which are directly or indirectly subsidized by other Federal tax benefits (including the credit under section 42 and the exclusion from gross

income under section 103),

‘‘(2) which prevent the abuse of the purposes of this section,

‘‘(3) which provide rules for determining whether the requirement of subsection (b)(1)(B) is treated as met,

‘‘(4) which impose appropriate reporting requirements, and

‘‘(5) which apply the provisions of this section to newly

formed entities.’’.

(b) CREDIT MADE PART OF GENERAL BUSINESS CREDIT.—

(1) IN GENERAL.—Subsection (b) of section 38 is amended

by striking ‘‘plus’’ at the end of paragraph (11), by striking the

period at the end of paragraph (12) and inserting ‘‘, plus’’, and

by adding at the end the following new paragraph:

‘‘(13) the new markets tax credit determined under section

45D(a).’’.

(2) LIMITATION ON CARRYBACK.—Subsection (d) of section

39 is amended by adding at the end the following new paragraph:

‘‘(9) NO CARRYBACK OF NEW MARKETS TAX CREDIT BEFORE

JANUARY 1, 2001.—No portion of the unused business credit for

any taxable year which is attributable to the credit under section 45D may be carried back to a taxable year ending before

January 1, 2001.’’.

(c) DEDUCTION FOR UNUSED CREDIT.—Subsection (c) of section

196 is amended by striking ‘‘and’’ at the end of paragraph (7), by

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striking the period at the end of paragraph (8) and inserting ‘‘,

and’’, and by adding at the end the following new paragraph:

‘‘(9) the new markets tax credit determined under section

45D(a).’’.

(d) CLERICAL AMENDMENT.—The table of sections for subpart D

of part IV of subchapter A of chapter 1 is amended by adding at

the end the following new item:

‘‘Sec. 45D. New markets tax credit.’’.

(e) EFFECTIVE DATE.—The amendments made by this section

shall apply to investments made after December 31, 2000.

(f) GUIDANCE ON ALLOCATION OF NATIONAL LIMITATION.—Not

later than 120 days after the date of the enactment of this Act, the

Secretary of the Treasury or the Secretary’s delegate shall issue

guidance which specifies—

(1) how entities shall apply for an allocation under section

45D(f)(2) of the Internal Revenue Code of 1986, as added by

this section;

(2) the competitive procedure through which such allocations are made; and

(3) the actions that such Secretary or delegate shall take to

ensure that such allocations are properly made to appropriate

entities.

(g) AUDIT AND REPORT.—Not later than January 31 of 2004,

2007, and 2010, the Comptroller General of the United States shall,

pursuant to an audit of the new markets tax credit program established under section 45D of the Internal Revenue Code of 1986 (as

added by subsection (a)), report to Congress on such program, including all qualified community development entities that receive an

allocation under the new markets credit under such section.

Subtitle D—Improvements in Low-Income Housing Credit

SEC. 131. MODIFICATION OF STATE CEILING ON LOW-INCOME HOUSING CREDIT.

(a) IN GENERAL.—Clauses (i) and (ii) of section 42(h)(3)(C) (relating to State housing credit ceiling) are amended to read as follows:

‘‘(i) the unused State housing credit ceiling (if any)

of such State for the preceding calendar year,

‘‘(ii) the greater of—

‘‘(I) $1.75 ($1.50 for 2001) multiplied by the

State population, or

‘‘(II) $2,000,000,’’.

(b) ADJUSTMENT OF STATE CEILING FOR INCREASES IN COST-OFLIVING.—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

936

‘‘(II) the cost-of-living adjustment determined

under section 1(f)(3) for such calendar year by substituting ‘calendar year 2001’ for ‘calendar year

1992’ in subparagraph (B) thereof.

‘‘(ii) ROUNDING.—

‘‘(I) In the case of the $2,000,000 amount, any

increase under clause (i) which is not a multiple of

$5,000 shall be rounded to the next lowest multiple

of $5,000.

‘‘(II) In the case of the $1.75 amount, any increase under clause (i) which is not a multiple of

5 cents shall be rounded to the next lowest multiple of 5 cents.’’.

(c) CONFORMING AMENDMENTS.—

(1) Section 42(h)(3)(C), as amended by subsection (a), is

amended—

(A) by striking ‘‘clause (ii)’’ in the matter following

clause (iv) and inserting ‘‘clause (i)’’; and

(B) by striking ‘‘clauses (i)’’ in the matter following

clause (iv) and inserting ‘‘clauses (ii)’’.

(2) Section 42(h)(3)(D)(ii) is amended—

(A) by striking ‘‘subparagraph (C)(ii)’’ and inserting

‘‘subparagraph (C)(i)’’; and

(B) by striking ‘‘clauses (i)’’ in subclause (II) and inserting ‘‘clauses (ii)’’.

(d) EFFECTIVE DATE.—The amendments made by this section

shall apply to calendar years after 2000.

SEC. 132. MODIFICATION OF CRITERIA FOR ALLOCATING HOUSING

CREDITS AMONG PROJECTS.

(a) SELECTION CRITERIA.—Subparagraph (C) of section

42(m)(1) (relating to certain selection criteria must be used) is

amended—

(1) by inserting ‘‘, including whether the project includes

the use of existing housing as part of a community revitalization plan’’ before the comma at the end of clause (iii); and

(2) by striking clauses (v), (vi), and (vii) and inserting the

following new clauses:

‘‘(v) tenant populations with special housing needs,

‘‘(vi) public housing waiting lists,

‘‘(vii) tenant populations of individuals with children, and

‘‘(viii) projects intended for eventual tenant ownership.’’.

(b) PREFERENCE FOR COMMUNITY REVITALIZATION PROJECTS

LOCATED IN QUALIFIED CENSUS TRACTS.—Clause (ii) of section

42(m)(1)(B) is amended by striking ‘‘and’’ at the end of subclause (I),

by adding ‘‘and’’ at the end of subclause (II), and by inserting after

subclause (II) the following new subclause:

‘‘(III) projects which are located in qualified

census tracts (as defined in subsection (d)(5)(C))

and the development of which contributes to a concerted community revitalization plan,’’.

937

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 BUILD- INGS USED BY LOW-INCOME INDIVIDUALS WHO ARE NOT TENANTS

AND BY PROJECT EMPLOYEES.—Paragraph (4) of section 42(d) (relating to special rules relating to determination of adjusted basis) is

amended—

(1) by striking ‘‘subparagraph (B)’’ in subparagraph (A)

and inserting ‘‘subparagraphs (B) and (C)’’;

(2) by redesignating subparagraph (C) as subparagraph

(D); and

(3) by inserting after subparagraph (B) the following new

subparagraph:

‘‘(C) INCLUSION OF BASIS OF PROPERTY USED TO PROVIDE SERVICES FOR CERTAIN NONTENANTS.—

‘‘(i) IN GENERAL.—The adjusted basis of any building located in a qualified census tract (as defined in

paragraph (5)(C)) shall be determined by taking into

account the adjusted basis of property (of a character

subject to the allowance for depreciation and not otherwise taken into account) used throughout the taxable

year in providing any community service facility.

‘‘(ii) LIMITATION.—The increase in the adjusted

basis of any building which is taken into account by

reason of clause (i) shall not exceed 10 percent of the

eligible basis of the qualified low-income housing

project of which it is a part. For purposes of the preceding sentence, all community service facilities which

are part of the same qualified low-income housing

project shall be treated as one facility.

‘‘(iii) COMMUNITY SERVICE FACILITY.—For purposes

of this subparagraph, the term ‘community service faVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00941 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.008 pfrm03 PsN: HR1033
938

cility’ means any facility designed to serve primarily

individuals whose income is 60 percent or less of area

median income (within the meaning of subsection

(g)(1)(B)).’’.

(b) CERTAIN NATIVE AMERICAN HOUSING ASSISTANCE DISREGARDED IN DETERMINING WHETHER BUILDING IS FEDERALLY

SUBSIDIZED FOR PURPOSES OF THE LOW-INCOME HOUSING CREDIT.—Subparagraph (E) of section 42(i)(2) (relating to determination

of whether building is federally subsidized) is amended—

(1) in clause (i), by inserting ‘‘or the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C.

4101 et seq.) (as in effect on October 1, 1997)’’ after ‘‘this subparagraph)’’; and

(2) in the subparagraph heading, by inserting ‘‘OR NATIVE

AMERICAN HOUSING ASSISTANCE’’ after ‘‘HOME ASSISTANCE’’.

SEC. 135. OTHER MODIFICATIONS.

(a) ALLOCATION OF CREDIT LIMIT TO CERTAIN BUILDINGS.—

(1) The first sentence of section 42(h)(1)(E)(ii) is amended

by striking ‘‘(as of’’ the first place it appears and inserting ‘‘(as

of the later of the date which is 6 months after the date that

the allocation was made or’’.

(2) The last sentence of section 42(h)(3)(C) is amended by

striking ‘‘project which’’ and inserting ‘‘project which fails to

meet the 10 percent test under paragraph (1)(E)(ii) on a date

after the close of the calendar year in which the allocation was

made or which’’.

(b) DETERMINATION OF WHETHER BUILDINGS ARE LOCATED IN

HIGH COST AREAS.—The first sentence of section 42(d)(5)(C)(ii)(I) is

amended—

(1) by inserting ‘‘either’’ before ‘‘in which 50 percent’’; and

(2) by inserting before the period ‘‘or which has a poverty

rate of at least 25 percent’’.

SEC. 136. CARRYFORWARD RULES.

(a) IN GENERAL.—Clause (ii) of section 42(h)(3)(D) (relating to

unused housing credit carryovers allocated among certain States) is

amended by striking ‘‘the excess’’ and all that follows and inserting

‘‘the excess (if any) of—

‘‘(I) the unused State housing credit ceiling for

the year preceding such year, over

‘‘(II) the aggregate housing credit dollar

amount allocated for such year.’’.

(b) CONFORMING AMENDMENT.—The second sentence of section

42(h)(3)(C) (relating to State housing credit ceiling) is amended by

striking ‘‘clauses (i) and (iii)’’ and inserting ‘‘clauses (i) through

(iv)’’.

SEC. 137. EFFECTIVE DATE.

Except as otherwise provided in this subtitle, the amendments

made by this subtitle shall apply to—

(1) housing credit dollar amounts allocated after December

31, 2000; and

(2) buildings placed in service after such date to the extent

paragraph (1) of section 42(h) of the Internal Revenue Code of

939

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 AU- THORITY 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 CORPORA- TIONS.—‘‘(1) TRANSFER AUTHORITY.—Notwithstanding the authority

under subsection (a) and the last sentence of section 204(g) of

the National Housing Act (12 U.S.C. 1710(g)), the Secretary of

Housing and Urban Development shall transfer ownership of

any qualified HUD property, subject to the requirements of this

section, to a unit of general local government having jurisdiction for the area in which the property is located or to a community development corporation which operates within such a

unit of general local government in accordance with this subsection, but only to the extent that units of general local government and community development corporations consent to

transfer and the Secretary determines that such transfer is

practicable.

‘‘(2) QUALIFIED HUD PROPERTIES.—For purposes of this subsection, the term ‘qualified HUD property’ means any property

for which, as of the date that notification of the property is first

made under paragraph (3)(B), not less than 6 months have

elapsed since the later of the date that the property was acquired by the Secretary or the date that the property was determined to be unoccupied or substandard, that is owned by the

Secretary and is—

‘‘(A) an unoccupied multifamily housing project;

‘‘(B) a substandard multifamily housing project; or

‘‘(C) an unoccupied single family property that—

‘‘(i) has been determined by the Secretary not to be

an eligible asset under section 204(h) of the National

Housing Act (12 U.S.C. 1710(h)); or

‘‘(ii) is an eligible asset under such section 204(h),

but—

‘‘(I) is not subject to a specific sale agreement

under such section; and

940

‘‘(II) has been determined by the Secretary to

be inappropriate for continued inclusion in the

program under such section 204(h) pursuant to

paragraph (10) of such section.

‘‘(3) TIMING.—The Secretary shall establish procedures that

provide for—

‘‘(A) time deadlines for transfers under this subsection;

‘‘(B) notification to units of general local government

and community development corporations of qualified HUD

properties in their jurisdictions;

‘‘(C) such units and corporations to express interest in

the transfer under this subsection of such properties;

‘‘(D) a right of first refusal for transfer of qualified

HUD properties to units of general local government and

community development corporations, under which—

‘‘(i) the Secretary shall establish a period during

which the Secretary may not transfer such properties

except to such units and corporations;

‘‘(ii) the Secretary shall offer qualified HUD properties that are single family properties for purchase by

units of general local government at a cost of $1 for

each property, but only to the extent that the costs to

the Federal Government of disposal at such price do

not exceed the costs to the Federal Government of disposing of property subject to the procedures for single

family property established by the Secretary pursuant

to the authority under the last sentence of section

204(g) of the National Housing Act (12 U.S.C. 1710(g));

‘‘(iii) the Secretary may accept an offer to purchase

a property made by a community development corporation only if the offer provides for purchase on a cost recovery basis; and

‘‘(iv) the Secretary shall accept an offer to purchase

such a property that is made during such period by

such a unit or corporation and that complies with the

requirements of this paragraph; and

‘‘(E) a written explanation, to any unit of general local

government or community development corporation making

an offer to purchase a qualified HUD property under this

subsection that is not accepted, of the reason that such offer

was not acceptable.

‘‘(4) OTHER DISPOSITION.—With respect to any qualified

HUD property, if the Secretary does not receive an acceptable

offer to purchase the property pursuant to the procedure established under paragraph (3), the Secretary shall dispose of the

property to the unit of general local government in which property is located or to community development corporations located in such unit of general local government on a negotiated,

competitive bid, or other basis, on such terms as the Secretary

deems appropriate.

‘‘(5) SATISFACTION OF INDEBTEDNESS.—Before transferring

ownership of any qualified HUD property pursuant to this subsection, the Secretary shall satisfy any indebtedness incurred in

941

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

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on which the Secretary acquires title to the property and

ending on the date on which the sale is consummated.

‘‘(C) MULTIFAMILY HOUSING PROJECT.—The term ‘multifamily housing project’ has the meaning given the term in

section 203 of the Housing and Community Development

Amendments of 1978.

‘‘(D) RESIDENTIAL PROPERTY.—The term ‘residential

property’ means a property that is a multifamily housing

project or a single family property.

‘‘(E) SECRETARY.—The term ‘Secretary’ means the Secretary of Housing and Urban Development.

‘‘(F) SEVERE PHYSICAL PROBLEMS.—The term ‘severe

physical problems’ means, with respect to a dwelling unit,

that the unit—

‘‘(i) lacks hot or cold piped water, a flush toilet, or

both a bathtub and a shower in the unit, for the exclusive use of that unit;

‘‘(ii) on not less than three separate occasions during the preceding winter months, was uncomfortably

cold for a period of more than 6 consecutive hours due

to a malfunction of the heating system for the unit;

‘‘(iii) has no functioning electrical service, exposed

wiring, any room in which there is not a functioning

electrical outlet, or has experienced three or more

blown fuses or tripped circuit breakers during the preceding 90-day period;

‘‘(iv) is accessible through a public hallway in

which there are no working light fixtures, loose or

missing steps or railings, and no elevator; or

‘‘(v) has severe maintenance problems, including

water leaks involving the roof, windows, doors, basement, or pipes or plumbing fixtures, holes or open

cracks in walls or ceilings, severe paint peeling or broken plaster, and signs of rodent infestation.

‘‘(G) SINGLE FAMILY PROPERTY.—The term ‘single family property’ means a 1- to 4-family residence.

‘‘(H) SUBSTANDARD.—The term ‘substandard’ means,

with respect to a multifamily housing project, that 25 percent or more of the dwelling units in the project have severe

physical problems.

‘‘(I) UNIT OF GENERAL LOCAL GOVERNMENT.—The term

‘unit of general local government’ has the meaning given

such term in section 102(a) of the Housing and Community

Development Act of 1974.

‘‘(J) UNOCCUPIED.—The term ‘unoccupied’ means, with

respect to a residential property, that the unit of general

local government having jurisdiction over the area in which

the project is located has certified in writing that the property is not inhabited.

‘‘(12) REGULATIONS.—

‘‘(A) INTERIM.—Not later than 30 days after the date of

the enactment of this subsection, the Secretary shall issue

such interim regulations as are necessary to carry out this

subsection.

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‘‘(B) FINAL.—Not later than 60 days after the date of

the enactment of this subsection, the Secretary shall issue

such final regulations as are necessary to carry out this

subsection.’’.

SEC. 142. TRANSFER OF HUD ASSETS IN REVITALIZATION AREAS.

In carrying out the program under section 204(h) of the National Housing Act (12 U.S.C. 1710(h)), upon the request of the chief

executive officer of a county or the government of appropriate jurisdiction and not later than 60 days after such request is made, the

Secretary of Housing and Urban Development shall designate as a

revitalization area all portions of such county that meet the criteria

for such designation under paragraph (3) of such section.

SEC. 143. RISK-SHARING DEMONSTRATION.

Section 249 of the National Housing Act (12 U.S.C. 1715z–14)

is amended—

(1) by striking the section heading and inserting the following:

‘‘RISK-SHARING DEMONSTRATION’’;

(2) by striking ‘‘reinsurance’’ each place such term appears

and insert ‘‘risk-sharing’’;

(3) in subsection (a)—

(A) in the first sentence, by inserting ‘‘and with insured

community development financial institutions’’ after ‘‘private mortgage insurers’’;

(B) in the second sentence—

(i) by striking ‘‘two’’ and inserting ‘‘four’’; and

(ii) by striking ‘‘March 15, 1988’’ and inserting

‘‘the expiration of the 5-year period beginning on the

date of the enactment of the Community Renewal Tax

Relief Act of 2000’’; and

(C) in the third sentence—

(i) by striking ‘‘insured’’ and inserting ‘‘for which

risk of nonpayment is shared’’; and

(ii) by striking ‘‘10 percent’’ and inserting ‘‘20 percent’’;

(4) in subsection (b)—

(A) in the first sentence—

(i) by striking ‘‘to provide’’ and inserting ‘‘, in providing’’;

(ii) by striking ‘‘through’’ and inserting ‘‘, to enter

into’’; and

(iii) by inserting ‘‘and with insured community development financial institutions’’ before the period at

the end;

(B) in the second sentence, by inserting ‘‘and insured

community development financial institutions’’ after ‘‘private mortgage insurance companies’’;

(C) by striking paragraph (1) and inserting the following new paragraph:

‘‘(1) assume a secondary percentage of loss on any mortgage

insured pursuant to section 203(b), 234, or 245 covering a oneto four-family dwelling, which percentage of loss shall be set

944

forth in the risk-sharing contract, with the first percentage of

loss to be borne by the Secretary;’’; and

(D) in paragraph (2)—

(i) by striking ‘‘carry out (under appropriate delegation) such’’ and inserting ‘‘perform or delegate underwriting,’’;

(ii) by striking ‘‘function as the Secretary pursuant

to regulations,’’ and inserting ‘‘functions as the Secretary’’; and

(iii) by inserting before the period at the end the

following: ‘‘and shall set forth in the risk-sharing contract’’;

(5) in subsection (c)—

(A) in the first sentence—

(i) by striking ‘‘of’’ the first place it appears and inserting ‘‘for’’;

(ii) by inserting ‘‘received by the Secretary with a

private mortgage insurer or insured community development financial institution’’ after ‘‘sharing of premiums’’;

(iii) by striking ‘‘insurance reserves’’ and inserting

‘‘loss reserves’’;

(iv) by striking ‘‘such insurance’’ and inserting

‘‘such risk-sharing contract’’; and

(v) by striking ‘‘right’’ and inserting ‘‘rights’’; and

(B) in the second sentence—

(i) by inserting ‘‘or insured community development financial institution’’ after ‘‘private mortgage insurance company’’; and

(ii) by striking ‘‘for insurance’’ and inserting ‘‘for

risk-sharing’’;

(6) in subsection (d), by inserting ‘‘or insured community

development financial institution’’ after ‘‘private mortgage insurance company’’; and

(7) by adding at the end the following new subsection:

‘‘(e) INSURED COMMUNITY DEVELOPMENT FINANCIAL INSTITUTION.—For purposes of this section, the term ‘insured community development financial institution’ means a community development financial institution, as such term is defined in section 103 of Reigle

Community Development and Regulatory Improvement Act of 1994

(12 U.S.C. 4702) that is an insured depository institution (as such

term is defined in section 3 of the Federal Deposit Insurance Act (12

U.S.C. 1813)) or an insured credit union (as such term is defined

in section 101 of the Federal Credit Union Act (12 U.S.C. 1752)).’’.

SEC. 144. PREVENTION AND TREATMENT OF SUBSTANCE ABUSE; SERVICES PROVIDED THROUGH RELIGIOUS ORGANIZATIONS.

Title V of the Public Health Service Act (42 U.S.C. 290aa et

seq.) is amended by adding at the end the following part:

945

‘‘PART G—SERVICES PROVIDED THROUGH RELIGIOUS

ORGANIZATIONS

‘‘SEC. 581. APPLICABILITY TO DESIGNATED PROGRAMS.

‘‘(a) DESIGNATED PROGRAMS.—Subject to subsection (b), this

part applies to discretionary and formula grant programs administered by the Substance Abuse and Mental Health Services Administration that make awards of financial assistance to public or private

entities for the purpose of carrying out activities to prevent or treat

substance abuse (in this part referred to as a ‘designated program’).

Designated programs include the program under subpart II of part

B of title XIX (relating to formula grants to the States).

‘‘(b) LIMITATION.—This part does not apply to any award of financial assistance under a designated program for a purpose other

than the purpose specified in subsection (a).

‘‘(c) DEFINITIONS.—For purposes of this part (and subject to

subsection (b)):

‘‘(1) The term ‘designated program’ has the meaning given

such term in subsection (a).

‘‘(2) The term ‘financial assistance’ means a grant, cooperative agreement, or contract.

‘‘(3) The term ‘program beneficiary’ means an individual

who receives program services.

‘‘(4) The term ‘program participant’ means a public or private entity that has received financial assistance under a designated program.

‘‘(5) The term ‘program services’ means treatment for substance abuse, or preventive services regarding such abuse, provided pursuant to an award of financial assistance under a

designated program.

‘‘(6) The term ‘religious organization’ means a nonprofit religious organization.

‘‘SEC. 582. RELIGIOUS ORGANIZATIONS AS PROGRAM PARTICIPANTS.

‘‘(a) IN GENERAL.—Notwithstanding any other provision of law,

a religious organization, on the same basis as any other nonprofit

private provider—

‘‘(1) may receive financial assistance under a designated

program; and

‘‘(2) may be a provider of services under a designated program.

‘‘(b) RELIGIOUS ORGANIZATIONS.—The purpose of this section is

to allow religious organizations to be program participants on the

same basis as any other nonprofit private provider without impairing the religious character of such organizations, and without diminishing the religious freedom of program beneficiaries.

‘‘(c) NONDISCRIMINATION AGAINST RELIGIOUS ORGANIZATIONS.—

‘‘(1) ELIGIBILITY AS PROGRAM PARTICIPANTS.—Religious organizations are eligible to be program participants on the same

basis as any other nonprofit private organization as long as the

programs are implemented consistent with the Establishment

Clause and Free Exercise Clause of the First Amendment to the

United States Constitution. Nothing in this Act shall be construed to restrict the ability of the Federal Government, or a

946

State or local government receiving funds under such programs,

to apply to religious organizations the same eligibility conditions in designated programs as are applied to any other nonprofit private organization.

‘‘(2) NONDISCRIMINATION.—Neither the Federal Government

nor a State or local government receiving funds under designated programs shall discriminate against an organization

that is or applies to be a program participant on the basis that

the organization has a religious character.

‘‘(d) RELIGIOUS CHARACTER AND FREEDOM.— ‘‘(1) RELIGIOUS ORGANIZATIONS.—Except as provided in this

section, any religious organization that is a program participant shall retain its independence from Federal, State, and

local government, including such organization’s control over the

definition, development, practice, and expression of its religious

beliefs.

‘‘(2) ADDITIONAL SAFEGUARDS.—Neither the Federal Government nor a State shall require a religious organization to—

‘‘(A) alter its form of internal governance; or

‘‘(B) remove religious art, icons, scripture, or other symbols,

in order to be a program participant.

‘‘(e) EMPLOYMENT PRACTICES.—Nothing in this section shall be

construed to modify or affect the provisions of any other Federal or

State law or regulation that relates to discrimination in employment. A religious organization’s exemption provided under section

702 of the Civil Rights Act of 1964 regarding employment practices

shall not be affected by its participation in, or receipt of funds from,

a designated program.

‘‘(f) RIGHTS OF PROGRAM BENEFICIARIES.— ‘‘(1) IN GENERAL.—If an individual who is a program beneficiary or a prospective program beneficiary objects to the religious character of a program participant, within a reasonable

period of time after the date of such objection such program

participant shall refer such individual to, and the appropriate

Federal, State, or local government that administers a designated program or is a program participant shall provide to

such individual (if otherwise eligible for such services), program

services that—

‘‘(A) are from an alternative provider that is accessible

to, and has the capacity to provide such services to, such

individual; and

‘‘(B) have a value that is not less than the value of the

services that the individual would have received from the

program participant to which the individual had such objection.

Upon referring a program beneficiary to an alternative provider, the program participant shall notify the appropriate Federal, State, or local government agency that administers the

program of such referral.

‘‘(2) NOTICES.—Program participants, public agencies that

refer individuals to designated programs, and the appropriate

Federal, State, or local governments that administer designated

programs or are program participants shall ensure that notice

947

is provided to program beneficiaries or prospective program

beneficiaries of their rights under this section.

‘‘(3) ADDITIONAL REQUIREMENTS.—A program participant

making a referral pursuant to paragraph (1) shall—

‘‘(A) prior to making such referral, consider any list

that the State or local government makes available of entities in the geographic area that provide program services;

and

‘‘(B) ensure that the individual makes contact with the

alternative provider to which the individual is referred.

‘‘(4) NONDISCRIMINATION.—A religious organization that is

a program participant shall not in providing program services

or engaging in outreach activities under designated programs

discriminate against a program beneficiary or prospective program beneficiary on the basis of religion or religious belief.

‘‘(g) FISCAL ACCOUNTABILITY.—

‘‘(1) IN GENERAL.—Except as provided in paragraph (2),

any religious organization that is a program participant shall

be subject to the same regulations as other recipients of awards

of Federal financial assistance to account, in accordance with

generally accepted auditing principles, for the use of the funds

provided under such awards.

‘‘(2) LIMITED AUDIT.—With respect to the award involved, a

religious organization that is a program participant shall segregate Federal amounts provided under award into a separate

account from non-Federal funds. Only the award funds shall be

subject to audit by the government.

‘‘(h) COMPLIANCE.—With respect to compliance with this section

by an agency, a religious organization may obtain judicial review

of agency action in accordance with chapter 7 of title 5, United

States Code.

‘‘SEC. 583. LIMITATIONS ON USE OF FUNDS FOR CERTAIN PURPOSES.

‘‘No funds provided under a designated program shall be expended for sectarian worship, instruction, or proselytization.

‘‘SEC. 584. EDUCATIONAL REQUIREMENTS FOR PERSONNEL IN DRUG

TREATMENT PROGRAMS.

‘‘(a) FINDINGS.—The Congress finds that—

‘‘(1) establishing unduly rigid or uniform educational qualification for counselors and other personnel in drug treatment

programs may undermine the effectiveness of such programs;

and

‘‘(2) such educational requirements for counselors and other

personnel may hinder or prevent the provision of needed drug

treatment services.

‘‘(b) NONDISCRIMINATION.—In determining whether personnel of

a program participant that has a record of successful drug treatment for the preceding three years have satisfied State or local requirements for education and training, a State or local government

shall not discriminate against education and training provided to

such personnel by a religious organization, so long as such education and training includes basic content substantially equivalent

to the content provided by nonreligious organizations that the State

948

or local government would credit for purposes of determining whether the relevant requirements have been satisfied.’’.

PART II—ADVISORY COUNCIL ON COMMUNITY

RENEWAL

SEC. 151. SHORT TITLE.

This part may be cited as the ‘‘Advisory Council on Community

Renewal Act’’.

SEC. 152. ESTABLISHMENT.

There is established an advisory council to be known as the

‘‘Advisory Council on Community Renewal’’ (in this part referred to

as the ‘‘Advisory Council’’).

SEC. 153. DUTIES OF ADVISORY COUNCIL.

The Advisory Council shall advise the Secretary of Housing and

Urban Development (in this part referred to as the ‘‘Secretary’’) on

the designation of renewal communities pursuant to the amendment

made by section 101 and on the exercise of any other authority

granted to the Secretary pursuant to the amendments made by this

title.

SEC. 154. MEMBERSHIP.

(a) NUMBER AND APPOINTMENT.—The Advisory Council shall be

composed of 7 members appointed by the Secretary.

(b) CHAIRPERSON.—The Chairperson of the Advisory Council (in

this part referred to as the ‘‘Chairperson’’) shall be designated by the

Secretary at the time of the appointment.

(c) TERMS.—Each member shall be appointed for the life of the

Advisory Council.

(d) BASIC PAY.—

(1) CHAIRPERSON.—The Chairperson shall be paid at a rate

equal to the daily rate of basic pay for level III of the Executive

Schedule for each day (including travel time) during which the

Chairperson is engaged in the actual performance of duties

vested in the Advisory Council.

(2) OTHER MEMBERS.—Members other than the Chairperson

shall each be paid at a rate equal to the daily rate of basic pay

for level IV of the Executive Schedule for each day (including

travel time) during which they are engaged in the actual performance of duties vested in the Advisory Council.

(e) TRAVEL EXPENSES.—Each member shall receive travel expenses, including per diem in lieu of subsistence, in accordance with

applicable provisions under subchapter I of chapter 57 of title 5,

United States Code.

(f) QUORUM.—Four members of the Advisory Council shall constitute a quorum but a lesser number may hold hearings.

(g) MEETINGS.—The Advisory Council shall meet at the call of

the Secretary or the Chairperson.

SEC. 155. POWERS OF ADVISORY COUNCIL.

(a) HEARINGS AND SESSIONS.—The Advisory Council may, for

the purpose of carrying out this part, hold hearings, sit and act at

times and places, take testimony, and receive evidence as the AdviVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00952 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.008 pfrm03 PsN: HR1033
949

sory Council considers appropriate. The Advisory Council may administer oaths or affirmations to witnesses appearing before it.

(b) POWERS OF MEMBERS AND AGENTS.—Any member or agent

of the Advisory Council may, if authorized by the Advisory Council,

take any action which the Advisory Council is authorized to take by

this section.

(c) OBTAINING OFFICIAL DATA.—The Advisory Council may secure directly from any department or agency of the United States information necessary to enable it to carry out this part. Upon request

of the Chairperson of the Advisory Council, the head of that department or agency shall furnish that information to the Advisory Council.

SEC. 156. REPORTS.

(a) ANNUAL REPORTS.—The Advisory Council shall submit to

the Secretary an annual report for each fiscal year.

(b) INTERIM REPORTS.—The Advisory Council may submit to

the Secretary such interim reports as the Advisory Council considers

appropriate.

(c) FINAL REPORT.—The Advisory Council shall transmit a final

report to the Secretary not later September 30, 2003. The final report shall contain a detailed statement of the findings and conclusions of the Advisory Council, together with any recommendations

for legislative or administrative action that the Advisory Council

considers appropriate.

SEC. 157. TERMINATION.

(a) IN GENERAL.—The Advisory Council shall terminate 30

days after submitting its final report under section 156(c).

(b) EXTENSION.—Notwithstanding subsection (a), the Secretary

may postpone the termination of the Advisory Council for a period

not to exceed 3 years after the Advisory Council submits its final report under section 156(c).

SEC. 158. APPLICABILITY OF FEDERAL ADVISORY COMMITTEE ACT.

The Federal Advisory Committee Act (5 U.S.C. App.) shall not

apply to the Advisory Council.

SEC. 159. RESOURCES.

The Secretary shall provide to the Advisory Council appropriate

resources so that the Advisory Council may carry out its duties and

functions under this part.

SEC. 160. EFFECTIVE DATE.

This part shall be effective 30 days after the date of its enactment.

Subtitle F—Other Provisions

SEC. 161. ACCELERATION OF PHASE-IN OF INCREASE IN VOLUME CAP

ON PRIVATE ACTIVITY BONDS.

(a) IN GENERAL.—Paragraphs (1) and (2) of section 146(d) (relating to State ceiling) are amended to read as follows:

‘‘(1) IN GENERAL.—The State ceiling applicable to any State

for any calendar year shall be the greater of—

‘‘(A) an amount equal to $75 ($62.50 in the case of calendar year 2001) multiplied by the State population, or

950

‘‘(B) $225,000,000 ($187,500,000 in the case of calendar

year 2001).

‘‘(2) COST-OF-LIVING ADJUSTMENT.—In the case of a calendar year after 2002, each of the dollar amounts contained in

paragraph (1) shall be increased by an amount equal to—

‘‘(A) such dollar amount, multiplied by

‘‘(B) the cost-of-living adjustment determined under

section 1(f)(3) for such calendar year by substituting ‘calendar year 2001’ for ‘calendar year 1992’ in subparagraph

(B) thereof.

If any increase determined under the preceding sentence is not

a multiple of $5 ($5,000 in the case of the dollar amount in

paragraph (1)(B)), such increase shall be rounded to the nearest

multiple thereof.’’.

(b) EFFECTIVE DATE.—The amendment made by this section

shall apply to calendar years after 2000.

SEC. 162. MODIFICATIONS TO EXPENSING OF ENVIRONMENTAL REMEDIATION COSTS.

(a) EXPENSING NOT LIMITED TO SITES IN TARGETED AREAS.—

Subsection (c) of section 198 is amended to read as follows:

‘‘(c) QUALIFIED CONTAMINATED SITE.—For purposes of this

section—

‘‘(1) IN GENERAL.—The term ‘qualified contaminated site’

means any area—

‘‘(A) which is held by the taxpayer for use in a trade

or business or for the production of income, or which is

property described in section 1221(a)(1) in the hands of the

taxpayer, and

‘‘(B) at or on which there has been a release (or threat

of release) or disposal of any hazardous substance.

‘‘(2) NATIONAL PRIORITIES LISTED SITES NOT INCLUDED.—

Such term shall not include any site which is on, or proposed

for, the national priorities list under section 105(a)(8)(B) of the

Comprehensive Environmental Response, Compensation, and

Liability Act of 1980 (as in effect on the date of the enactment

of this section).

‘‘(3) TAXPAYER MUST RECEIVE STATEMENT FROM STATE ENVIRONMENTAL AGENCY.—An area shall be treated as a qualified

contaminated site with respect to expenditures paid or incurred

during any taxable year only if the taxpayer receives a statement from the appropriate agency of the State in which such

area is located that such area meets the requirement of paragraph (1)(B).

‘‘(4) APPROPRIATE STATE AGENCY.—For purposes of paragraph (3), the chief executive officer of each State may, in consultation with the Administrator of the Environmental Protection Agency, designate the appropriate State environmental

agency within 60 days of the date of the enactment of this section. If the chief executive officer of a State has not designated

an appropriate environmental agency within such 60-day period, the appropriate environmental agency for such State shall

be designated by the Administrator of the Environmental Protection Agency.’’.

951

(b) EXTENSION OF TERMINATION DATE.—Subsection (h) of section 198 is amended by striking ‘‘2001’’ and inserting ‘‘2003’’.

(c) EFFECTIVE DATE.—The amendments made by this section

shall apply to expenditures paid or incurred after the date of the enactment of this Act.

SEC. 163. EXTENSION OF DC HOMEBUYER TAX CREDIT.

Section 1400C(i) (relating to application of section) is amended

by striking ‘‘2002’’ and inserting ‘‘2004’’.

SEC. 164. EXTENSION OF DC ZONE THROUGH 2003.

(a) IN GENERAL.—The following provisions are amended by

striking ‘‘2002’’ each place it appears and inserting ‘‘2003’’:

(1) Section 1400(f).

(2) Section 1400A(b).

(b) ZERO CAPITAL GAINS RATE.—Section 1400B (relating to zero

percent capital gains rate) is amended—

(1) by striking ‘‘2003’’ each place it appears and inserting

‘‘2004’’, and

(2) by striking ‘‘2007’’ each place it appears and inserting

‘‘2008’’.

SEC. 165. EXTENSION OF ENHANCED DEDUCTION FOR CORPORATE

DONATIONS OF COMPUTER TECHNOLOGY.

(a) EXPANSION OF COMPUTER TECHNOLOGY DONATIONS TO PUB- LIC 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’’.

952

(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 MANUFAC- TURER.—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 MANU- FACTURER.—In the case of property which is reacquired by

the person who constructed the property—

‘‘(i) subparagraph (B)(ii) shall be applied to a contribution of such property by such person by taking

into account the date that the original construction of

the property was substantially completed, and

‘‘(ii) subparagraph (B)(iii) shall not apply to such

contribution.’’

(f) EFFECTIVE DATE.—The amendments made by this section

shall apply to contributions made after December 31, 2000.

SEC. 166. TREATMENT OF INDIAN TRIBAL GOVERNMENTS UNDER FEDERAL UNEMPLOYMENT TAX ACT.

(a) IN GENERAL.—Section 3306(c)(7) (defining employment) is

amended—

(1) by inserting ‘‘or in the employ of an Indian tribe,’’ after

‘‘service performed in the employ of a State, or any political subdivision thereof,’’; and

(2) by inserting ‘‘or Indian tribes’’ after ‘‘wholly owned by

one or more States or political subdivisions’’.

(b) PAYMENTS IN LIEU OF CONTRIBUTIONS.—Section 3309 (relating to State law coverage of services performed for nonprofit organizations or governmental entities) is amended—

(1) in subsection (a)(2) by inserting ‘‘, including an Indian

tribe,’’ after ‘‘the State law shall provide that a governmental

entity’’;

(2) in subsection (b)(3)(B) by inserting ‘‘, or of an Indian

tribe’’ after ‘‘of a State or political subdivision thereof’’;

(3) in subsection (b)(3)(E) by inserting ‘‘or tribal’’ after ‘‘the

State’’; and

(4) in subsection (b)(5) by inserting ‘‘or of an Indian tribe’’

after ‘‘an agency of a State or political subdivision thereof’’.

(c) STATE LAW COVERAGE.—Section 3309 (relating to State law

coverage of services performed for nonprofit organizations or governmental entities) is amended by adding at the end the following new

subsection:

‘‘(d) ELECTION BY INDIAN TRIBE.—The State law shall provide

that an Indian tribe may make contributions for employment as if

the employment is within the meaning of section 3306 or make payments in lieu of contributions under this section, and shall provide

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that an Indian tribe may make separate elections for itself and each

subdivision, subsidiary, or business enterprise wholly owned by

such Indian tribe. State law may require a tribe to post a payment

bond or take other reasonable measures to assure the making of

payments in lieu of contributions under this section. Notwithstanding the requirements of section 3306(a)(6), if, within 90 days

of having received a notice of delinquency, a tribe fails to make contributions, payments in lieu of contributions, or payment of penalties or interest (at amounts or rates comparable to those applied

to all other employers covered under the State law) assessed with

respect to such failure, or if the tribe fails to post a required payment bond, then service for the tribe shall not be excepted from employment under section 3306(c)(7) until any such failure is corrected. This subsection shall apply to an Indian tribe within the

meaning of section 4(e) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b(e)).’’.

(d) DEFINITIONS.—Section 3306 (relating to definitions) is

amended by adding at the end the following new subsection:

‘‘(u) INDIAN TRIBE.—For purposes of this chapter, the term ‘Indian tribe’ has the meaning given to such term by section 4(e) of the

Indian Self-Determination and Education Assistance Act (25 U.S.C.

450b(e)), and includes any subdivision, subsidiary, or business enterprise wholly owned by such an Indian tribe.’’.

(e) EFFECTIVE DATE; TRANSITION RULE.— (1) EFFECTIVE DATE.—The amendments made by this section shall apply to service performed on or after the date of the

enactment of this Act.

(2) TRANSITION RULE.—For purposes of the Federal Unemployment Tax Act, service performed in the employ of an Indian

tribe (as defined in section 3306(u) of the Internal Revenue

Code of 1986 (as added by this section)) shall not be treated as

employment (within the meaning of section 3306 of such Code)

if—

(A) it is service which is performed before the date of

the enactment of this Act and with respect to which the tax

imposed under the Federal Unemployment Tax Act has not

been paid, and

(B) such Indian tribe reimburses a State unemployment fund for unemployment benefits paid for service attributable to such tribe for such period.

TITLE II—2-YEAR EXTENSION OF AVAILABILITY OF

MEDICAL SAVINGS ACCOUNTS

SEC. 201. 2-YEAR EXTENSION OF AVAILABILITY OF MEDICAL SAVINGS

ACCOUNTS.

(a) IN GENERAL.—Paragraphs (2) and (3)(B) of section 220(i)

(defining cut-off year) are each amended by striking ‘‘2000’’ each

place it appears and inserting ‘‘2002’’.

(b) CONFORMING AMENDMENTS.—

(1) Paragraph (2) of section 220(j) is amended—

(A) by striking ‘‘1998 or 1999’’ each place it appears

and inserting ‘‘1998, 1999, or 2001’’,

(B) by striking ‘‘600,000 (750,000 in the case of 1999)’’

and inserting ‘‘750,000 (600,000 in the case of 1998)’’, and

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(C) by inserting after subparagraph (B) the following

new subparagraph:

‘‘(C) NO LIMITATION FOR 2000.—The numerical limitation shall not apply for 2000.’’

(2) Subparagraph (A) of section 220(j)(4) is amended by

striking ‘‘and 1999’’ and inserting ‘‘1999, and 2001’’.

(c) EFFECTIVE DATE.—The amendments made by this section

shall take effect on the date of the enactment of this Act.

SEC. 202. MEDICAL SAVINGS ACCOUNTS RENAMED AS ARCHER MSAS.

(a) IN GENERAL.—The following provisions are amended by

striking ‘‘medical savings account’’ each place it appears in the text

and inserting ‘‘Archer MSA’’:

(1) Section 26(b)(2)(Q).

(2) Section 106(b).

(3) Section 138(b).

(4) Section 220.

(5) Section 848(e)(1)(B)(iv).

(6) Subsections (a)(2) and (d) of section 4973.

(7) Subsections (c)(4) and (e)(1)(D) of section 4975.

(8) Subsections (a) and (d)(2)(B) of section 4980E.

(9) Section 6051(a)(11).

(b) OTHER AMENDMENTS.—

(1) Paragraph (16) of section 62(a) is amended to read as

follows:

‘‘(16) ARCHER MSAS.—The deduction allowed by section

220.’’

(2) The following provisions are each amended by striking

‘‘medical savings accounts’’ each place it appears in the text and

inserting ‘‘Archer MSAs’’:

(A) Paragraphs (4) and (7) of section 106(b).

(B) Subsections (c)(1)(D), (e)(2), (f)(3)(A), (i)(4)(B), and

(j) of section 220.

(C) Section 4973(d).

(D) Subsections (b) and (d)(1) of section 4980E.

(E) Section 6693(a)(2)(B).

(3) Paragraph (1) of section 220(d) is amended by inserting

‘‘as a medical savings account’’ after ‘‘United States’’.

(4) The heading for section 220(d) is amended by striking

‘‘MEDICAL SAVINGS ACCOUNT’’ and inserting ‘‘ARCHER MSA’’.

(5) The headings for sections 220(d)(1) and 3231(e)(10) are

each amended by striking ‘‘MEDICAL SAVINGS ACCOUNT’’ and inserting ‘‘ARCHER MSAS’’.

(6) The headings for sections 106(b), 138(f), 220(i), and

4973(d) are each amended by striking ‘‘MEDICAL SAVINGS ACCOUNTS’’ and inserting ‘‘ARCHER MSAS’’.

(7) The headings for section 220(c)(1)(C) and 4975(c)(4) are

each amended by striking ‘‘MEDICAL SAVINGS ACCOUNTS’’ and

inserting ‘‘ARCHER MSAS’’.

(8) The section heading for section 220 is amended to read

as follows:

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‘‘SEC. 220. ARCHER MSAS.’’

(9) The item relating to section 220 in the table of sections

for part VII of subchapter B of chapter 1 is amended to read

as follows:

‘‘Sec. 220. Archer MSAs.’’

(10) The provisions amended by the preceding provisions of

this section are further amended by striking ‘‘a Archer’’ each

place it appears and inserting ‘‘an Archer’’.

(11) Section 220(e)(1) is further amended by striking ‘‘A Archer’’ and inserting ‘‘An Archer’’.

TITLE III—ADMINISTRATIVE AND TECHNICAL

PROVISIONS

Subtitle A—Administrative Provisions

SEC. 301. EXEMPTION OF CERTAIN REPORTING REQUIREMENTS.

Section 3003(a)(1) of the Federal Reports Elimination and Sunset Act of 1995 (31 U.S.C. 1113 note) shall not apply to any report

required to be submitted under any of the following provisions of

law:

(1) Section 13031(f) of the Consolidated Omnibus Budget

Reconciliation Act of 1985 (19 U.S.C. 58c(f)).

(2) Section 16(c) of the Foreign Trade Zones Act (19 U.S.C.

81p(c)).

(3) The following provisions of the Tariff Act of 1930:

(A) Section 330(c)(1) (19 U.S.C. 1330(c)(1)).

(B) Section 607(c) (19 U.S.C. 1607(c)).

(4) Section 5 of the International Coffee Agreement Act of

1980 (19 U.S.C. 1356n).

(5) Section 351(a)(2) of the Trade Expansion Act of 1962

(19 U.S.C. 1981(a)(2)).

(6) Section 502 of the Automotive Products Trade Act of

1965 (19 U.S.C. 2032).

(7) Section 3131 of the Customs Enforcement Act of 1986

(19 U.S.C. 2081).

(8) The following provisions of the Trade Act of 1974 (19

U.S.C. 2101 et seq.):

(A) Section 102(b)(4)(A)(ii)(I) (19 U.S.C.

2112(b)(4)(A)(ii)(I)).

(B) Section 102(e)(1) (19 U.S.C. 2112(e)(1)).

(C) Section 102(e)(2) (19 U.S.C. 2112(e)(2)).

(D) Section 104(d) (19 U.S.C. 2114(d)).

(E) Section 125(e) (19 U.S.C. 2135(e)).

(F) Section 135(e)(1) (19 U.S.C. 2155(e)(1)).

(G) Section 141(c) (19 U.S.C. 2171(c)).

(H) Section 162 (19 U.S.C. 2212).

(I) Section 163(b) (19 U.S.C. 2213(b)).

(J) Section 163(c) (19 U.S.C. 2213(c)).

(K) Section 203(b) (19 U.S.C. 2253(b)).

(L) Section 302(b)(2)(C) (19 U.S.C. 2412(b)(2)(C)).

(M) Section 303 (19 U.S.C. 2413).

(N) Section 309 (19 U.S.C. 2419).

(O) Section 407(a) (19 U.S.C. 2437(a)).

(P) Section 502(f) (19 U.S.C. 2462(f)).

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(Q) Section 504 (19 U.S.C. 2464).

(9) The following provisions of the Trade Agreements Act of

1979 (19 U.S.C. 2501 et seq.):

(A) Section 2(b) (19 U.S.C. 2503(b)).

(B) Section 3(c) (19 U.S.C. 2504(c)).

(C) Section 305(c) (19 U.S.C. 2515(c)).

(10) Section 303(g)(1) of the Convention on Cultural Property Implementation Act (19 U.S.C. 2602(g)(1)).

(11) The following provisions of the Caribbean Basin Economic Recovery Act (19 U.S.C. 2701 et seq.):

(A) Section 212(a)(1)(A) (19 U.S.C. 2702(a)(1)(A)).

(B) Section 212(a)(2) (19 U.S.C. 2702(a)(2)).

(12) The following provisions of the Omnibus Trade and

Competitiveness Act of 1988 (19 U.S.C. 2901 et seq.):

(A) Section 1102 (19 U.S.C. 2902).

(B) Section 1103 (19 U.S.C. 2903).

(C) Section 1206(b) (19 U.S.C. 3006(b)).

(13) Section 123(a) of the Customs and Trade Act of 1990

(Public Law 101–382) (19 U.S.C. 2083).

(14) Section 243(b)(2) of the Caribbean Basin Economic Recovery Expansion Act of 1990 (Public Law 101–382).

(15) The following provisions of the Internal Revenue Code

of 1986:

(A) Section 6103(p)(5).

(B) Section 7608.

(C) Section 7802(f)(3).

(D) Section 8022(3).

(E) Section 9602(a).

(16) The following provisions relating to the revenue laws

of the United States:

(A) Section 1552(c) of the Tax Reform Act of 1986 (100

Stat. 2753).

(B) Section 231 of the Deficit Reduction Act of 1984 (26

U.S.C. 801 note).

(C) Section 208 of the Tax Treatment Extension Act of

1977 (26 U.S.C. 911 note).

(D) Section 7105 of the Technical and Miscellaneous

Revenue Act of 1988 (45 U.S.C. 369).

(17) Section 4008 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1308).

(18) Section 426 of the Black Lung Benefits Act (30 U.S.C.

936(b)).

(19) Section 7502(g) of title 31, United States Code.

(20) The following provisions of the Social Security Act:

(A) Section 215(i)(2)(C)(i) (42 U.S.C. 415(i)(2)(C)(i)).

(B) Section 221(i)(2) (42 U.S.C. 421(i)(2)).

(C) Section 221(i)(3) (42 U.S.C. 421(i)(3)).

(D) Section 233(e)(1) (42 U.S.C. 433(e)(1)).

(E) Section 452(a)(10) (42 U.S.C. 652(a)(10)).

(F) Section 452(g)(3)(B) (42 U.S.C. 652(g)(3)(B)).

(G) Section 506(a)(1) (42 U.S.C. 706(a)).

(H) Section 908 (42 U.S.C. 1108).

(I) Section 1114(f) (42 U.S.C. 1314(f)).

(J) Section 1120 (42 U.S.C. 1320).

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(K) Section 1161 (42 U.S.C. 1320c–10).

(L) Section 1875(b) (42 U.S.C. 1395ll(b)).

(M) Section 1881 (42 U.S.C. 1395rr).

(N) Section 1882 (42 U.S.C. 1395ss(f)(2)).

(21) Section 104(b) of the Social Security Independence and

Program Improvements Act of 1994 (42 USC 904 note).

(22) Section 10 of the Railroad Retirement Act of 1937 (45

U.S.C. 231f).

(23) The following provisions of the Railroad Retirement

Act of 1974:

(A) Section 22(a)(1) (45 U.S.C. 231u(a)(1)).

(B) Section 22(b)(1) (45 U.S.C. 231u(b)(1)).

(24) Section 502 of the Railroad Retirement Solvency Act of

1983 (45 U.S.C. 231f–1).

(25) Section 47121(c) of title 49, United States Code.

(26) The following provisions of the Omnibus Budget Reconciliation Act of 1987 (Public Law 100–203; 101 Stat. 1330–

182):

(A) Section 4007(c)(4) (42 U.S.C. 1395ww note).

(B) Section 4079 (42 U.S.C. 1395mm note).

(C) Section 4205 (42 U.S.C. 1395i–3 note).

(D) Section 4215 (42 U.S.C. 1396r note).

(27) The following provisions of the Inspector General Act

of 1978 (Public Law 95–452):

(A) Section 5(b).

(B) Section 5(d).

(28) The following provisions of the Public Health Service

Act:

(A) In section 308(a) (42 U.S.C. 242m(a)), subparagraphs (A), (B), (C), and (D) of paragraph (1).

(B) Section 403 (42 U.S.C. 283).

(29) Section 404 of the Health Services and Centers Amendments of 1978 (42 U.S.C. 242p) (Public Law 95–626).

(30) The following provisions of the Older Americans Act of

1965:

(A) Section 206(d) (42 U.S.C. 3017(d)).

(B) Section 207 (42 U.S.C. 3018).

(31) Section 308 of the Age Discrimination Act of 1975 (42

U.S.C. 6106a(b)).

(32) Section 509(c)(3) of the Americans with Disabilities Act

0f 1990 (42 U.S.C. 12209(c)(3)).

(33) Section 4207(f) of the Omnibus Budget Reconciliation

Act of 1990 (42 U.S.C. 1395b–1 note).

SEC. 302. EXTENSION OF DEADLINES FOR IRS COMPLIANCE WITH CERTAIN NOTICE REQUIREMENTS.

(a) ANNUAL INSTALLMENT AGREEMENT NOTICE.—Section 3506

of the Internal Revenue Service Restructuring and Reform Act of

1998 is amended by striking ‘‘July 1, 2000’’ and inserting ‘‘September 1, 2001’’.

(b) NOTICE REQUIREMENTS RELATING TO COMPUTATION OF

PENALTY.—Subsection (c) of section 3306 of the Internal Revenue

Service Restructuring and Reform Act of 1998 is amended—

(1) by striking ‘‘December 31, 2000’’ and inserting ‘‘June 30,

2001’’, and

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(2) by adding at the end the following: ‘‘In the case of any

notice of penalty issued after June 30, 2001, and before July 1,

2003, the requirements of section 6751(a) of the Internal Revenue Code of 1986 shall be treated as met if such notice contains a telephone number at which the taxpayer can request a

copy of the taxpayer’s assessment and payment history with respect to such penalty.’’.

(c) NOTICE REQUIREMENTS RELATING TO INTEREST IMPOSED.—

Subsection (c) of section 3308 of the Internal Revenue Service Restructuring and Reform Act of 1998 is amended—

(1) by striking ‘‘December 31, 2000’’ and inserting ‘‘June 30,

2001’’, and

(2) by adding at the end the following: ‘‘In the case of any

notice issued after June 30, 2001, and before July 1, 2003, to

which section 6631 of the Internal Revenue Code of 1986 applies, the requirements of section 6631 of such Code shall be

treated as met if such notice contains a telephone number at

which the taxpayer can request a copy of the taxpayer’s payment

history relating to interest amounts included in such notice.’’.

SEC. 303. EXTENSION OF AUTHORITY FOR UNDERCOVER OPERATIONS.

Paragraph (6), and the last sentence, of section 7608(c) are each

amended by striking ‘‘January 1, 2001’’ and inserting ‘‘January 1,

2006’’.

SEC. 304. CONFIDENTIALITY OF CERTAIN DOCUMENTS RELATING TO

CLOSING AND SIMILAR AGREEMENTS AND TO AGREEMENTS WITH FOREIGN GOVERNMENTS.

(a) CLOSING AND SIMILAR AGREEMENTS TREATED AS RETURN

INFORMATION.—Paragraph (2) of section 6103(b) (defining return

information) is amended by striking ‘‘and’’ at the end of subparagraph (B), by inserting ‘‘and’’ at the end of subparagraph (C), and

by inserting after subparagraph (C) the following new subparagraph:

‘‘(D) any agreement under section 7121, and any similar agreement, and any background information related to

such an agreement or request for such an agreement,’’.

(b) AGREEMENTS WITH FOREIGN GOVERNMENTS.—

(1) IN GENERAL.—Subchapter B of chapter 61 (relating to

miscellaneous provisions) is amended by inserting after section

6104 the following new section:

‘‘SEC. 6105. CONFIDENTIALITY OF INFORMATION ARISING UNDER

TREATY OBLIGATIONS.

‘‘(a) IN GENERAL.—Tax convention information shall not be disclosed.

‘‘(b) EXCEPTIONS.—Subsection (a) shall not apply—

‘‘(1) to the disclosure of tax convention information to persons or authorities (including courts and administrative bodies)

which are entitled to such disclosure pursuant to a tax convention,

‘‘(2) to any generally applicable procedural rules regarding

applications for relief under a tax convention, or

‘‘(3) in any case not described in paragraphs (1) or (2), to

the disclosure of any tax convention information not relating to

a particular taxpayer if the Secretary determines, after conVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00962 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.008 pfrm03 PsN: HR1033
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sultation with each other party to the tax convention, that such

disclosure would not impair tax administration.

‘‘(c) DEFINITIONS.—For purposes of this section—

‘‘(1) TAX CONVENTION INFORMATION.—The term ‘tax convention information’ means any—

‘‘(A) agreement entered into with the competent authority of one or more foreign governments pursuant to a tax

convention,

‘‘(B) application for relief under a tax convention,

‘‘(C) any background information related to such agreement or application,

‘‘(D) document implementing such agreement, and

‘‘(E) any other information exchanged pursuant to a tax

convention which is treated as confidential or secret under

the tax convention.

‘‘(2) TAX CONVENTION.—The term ‘tax convention’ means—

‘‘(A) any income tax or gift and estate tax convention,

or

‘‘(B) any other convention or bilateral agreement (including multilateral conventions and agreements and any

agreement with a possession of the United States) providing

for the avoidance of double taxation, the prevention of fiscal

evasion, nondiscrimination with respect to taxes, the exchange of tax relevant information with the United States,

or mutual assistance in tax matters.

‘‘(d) CROSS REFERENCES.— ‘‘For penalties for the unauthorized disclosure of tax convention

information which is return or return information, see sections 7213,

7213A, and 7431.’’.

(2) CLERICAL AMENDMENT.—The table of sections for subchapter B of chapter 61 is amended by inserting after the item

relating to section 6104 the following new item:

‘‘Sec. 6105. Confidentiality of information arising under treaty obligations.’’.

(c) EXCEPTION FROM PUBLIC INSPECTION AS WRITTEN DETER- MINATION.—

(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’’.

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(b) EFFECTIVE DATE.—The amendment made by subsection (a)

shall take effect on the date of the enactment of this Act, except that

such amendment shall not apply with respect to any refund or credit with respect to a report that has been made before such date of

the enactment under section 6405 of the Internal Revenue Code of

1986.

SEC. 306. TREATMENT OF MISSING CHILDREN WITH RESPECT TO CERTAIN TAX BENEFITS.

(a) IN GENERAL.—Subsection (c) of section 151 (relating to additional exemption for dependents) is amended by adding at the end

the following new paragraph:

‘‘(6) TREATMENT OF MISSING CHILDREN.— ‘‘(A) IN GENERAL.—Solely for the purposes referred to in

subparagraph (B), a child of the taxpayer—

‘‘(i) who is presumed by law enforcement authorities to have been kidnapped by someone who is not a

member of the family of such child or the taxpayer,

and

‘‘(ii) who was (without regard to this paragraph)

the dependent of the taxpayer for the portion of the taxable year before the date of the kidnapping,

shall be treated as a dependent of the taxpayer for all taxable years ending during the period that the child is kidnapped.

‘‘(B) PURPOSES.—Subparagraph (A) shall apply solely

for purposes of determining—

‘‘(i) the deduction under this section,

‘‘(ii) the credit under section 24 (relating to child

tax credit), and

‘‘(iii) whether an individual is a surviving spouse

or a head of a household (such terms are defined in

section 2).

‘‘(C) COMPARABLE TREATMENT FOR EARNED INCOME

CREDIT.—For purposes of section 32, an individual—

‘‘(i) who is presumed by law enforcement authorities to have been kidnapped by someone who is not a

member of the family of such individual or the taxpayer, and

‘‘(ii) who had, for the taxable year in which the

kidnapping occurred, the same principal place of abode

as the taxpayer for more than one-half of the portion

of such year before the date of the kidnapping, shall be

treated as meeting the requirement of section

32(c)(3)(A)(ii) with respect to a taxpayer for all taxable

years ending during the period that the individual is

kidnapped.

‘‘(D) TERMINATION OF TREATMENT.—Subparagraphs

(A) and (C) shall cease to apply as of the first taxable year

of the taxpayer beginning after the calendar year in which

there is a determination that the child is dead (or, if earlier, in which the child would have attained age 18).’’

(b) EFFECTIVE DATE.—The amendment made by this section

shall apply to taxable years ending after the date of the enactment

of this Act.

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SEC. 307. AMENDMENTS TO STATUTES REFERENCING YIELD ON 52-

WEEK TREASURY BILLS.

(a) AMENDMENT TO THE ACT OF FEBRUARY 26, 1931.—Section

6 of the Act of February 26, 1931 (40 U.S.C. 258e–1) (relating to the

interest rate on compensation owed for takings of property) is

amended—

(1) in paragraph (1), by striking ‘‘the coupon issue yield

equivalent (as determined by the Secretary of the Treasury) of

the average accepted auction price for the last auction of 52

week United States Treasury bills settled immediately before’’

and inserting ‘‘the weekly average 1-year constant maturity

Treasury yield, as published by the Board of Governors of the

Federal Reserve System, for the calendar week preceding’’; and

(2) in paragraph (2), by striking ‘‘the coupon issue yield

equivalent (as determined by the Secretary of the Treasury) of

the average accepted auction price for the last auction of 52

week United States Treasury bills settled immediately before’’

and inserting ‘‘the weekly average 1-year constant maturity

Treasury yield, as published by the Board of Governors of the

Federal Reserve System, for the calendar week preceding’’.

(b) AMENDMENT TO TITLE 18, UNITED STATES CODE.—Section

3612(f)(2)(B) of title 18, United States Code (relating to the interest

rate on unpaid criminal fines and penalties of more than $2,500)

is amended by striking ‘‘the coupon issue yield equivalent (as determined by the Secretary of the Treasury) of the average accepted auction price for the last auction of fifty-two week United States Treasury bills settled before’’ and inserting ‘the weekly average 1-year

constant maturity Treasury yield, as published by the Board of Governors of the Federal Reserve System, for the calendar week preceding.’’.

(c) AMENDMENT TO THE INTERNAL REVENUE CODE.—Section

995(f)(4) (relating to the interest rate on tax-deferred liability of

shareholders of domestic international sales corporations) is amended by striking ‘‘the average investment yield of United States Treasury bills with maturities of 52 weeks which were auctioned during

the 1-year period’’ and inserting ‘‘the average of the 1-year constant

maturity Treasury yields, as published by the Board of Governors

of the Federal Reserve System, for the 1-year period’’.

(d) AMENDMENTS TO TITLE 28, UNITED STATES CODE.—

(1) AMENDMENT TO SECTION 1961.—Section 1961(a) of title

28, United States Code (relating to the interest rate on money

judgments in civil cases recovered in Federal district court) is

amended by striking ‘‘the coupon issue yield equivalent (as determined by the Secretary of the Treasury) of the average accepted auction price for the last auction of fifty-two week United

States Treasury bills settled immediately prior to’’ and inserting

‘‘the weekly average 1-year constant maturity Treasury yield, as

published by the Board of Governors of the Federal Reserve

System, for the calendar week preceding.’’.

(2) AMENDMENT TO SECTION 2516.—Section 2516(b) of title

28, United States Code (relating to the interest rate on a judgment against the United States affirmed by the Supreme Court

after review on petition of the United States) is amended by

striking ‘‘the coupon issue yield equivalent (as determined by

962

the Secretary of the Treasury) of the average accepted auction

price for the last auction of fifty-two week United States Treasury bills settled immediately before’’ and inserting ‘‘the weekly

average 1-year constant maturity Treasury yield, as published

by the Board of Governors of the Federal Reserve System, for

the calendar week preceding’’.

SEC. 308. ADJUSTMENTS FOR CONSUMER PRICE INDEX ERROR.

(a) DETERMINATIONS BY OMB.—As soon as practicable after the

date of the enactment of this Act, the Director of the Office of Management and Budget shall determine with respect to each applicable

Federal benefit program whether the CPI computation error for

1999 has or will result in a shortfall in payments to beneficiaries

under such program (as compared to payments that would have

been made if the error had not occurred). As soon as practicable

after the date of the enactment of this Act, but not later than 60

days after such date, the Director shall direct the head of the Federal agency which administers such program to make a payment or

payments that, insofar as the Director finds practicable and

feasible—

(1) are targeted to the amount of the shortfall experienced

by individual beneficiaries, and

(2) compensate for the shortfall.

(b) COORDINATION WITH FEDERAL AGENCIES.—As soon as practicable after the date of the enactment of this Act, each Federal

agency that administers an applicable Federal benefit program

shall, in accordance with such guidelines as are issued by the Director pursuant to this section, make an initial determination of whether, and the extent to which, the CPI computation error for 1999 has

or will result in a shortfall in payments to beneficiaries of an applicable Federal benefit program administered by such agency. Not

later than 30 days after such date, the head of such agency shall

submit a report to the Director and to each House of the Congress

of such determination, together with a complete description of the

nature of the shortfall.

(c) IMPLEMENTATION PURSUANT TO AGENCY REPORTS.—Upon

receipt of the report submitted by a Federal agency pursuant to subsection (b), the Director shall review the initial determination of the

agency, the agency’s description of the nature of the shortfall, and

the compensation payments proposed by the agency. Prior to directing payment of such payments pursuant to subsection (a), the Director shall make appropriate adjustments (if any) in the compensation

payments proposed by the agency that the Director determines are

necessary to comply with the requirements of subsection (a) and

transmit to the agency a summary report of the review, indicating

any adjustments made by the Director. The agency shall make the

compensation payments as directed by the Director pursuant to subsection (a) in accordance with the Director’s summary report.

(d) INCOME DISREGARD UNDER FEDERAL MEANS-TESTED BENEFIT PROGRAMS.—A payment made under this section to compensate

for a shortfall in benefits shall, in accordance with guidelines issued

by the Director pursuant to this section, be disregarded in determining income under title VIII of the Social Security Act or any applicable Federal benefit program that is means-tested.

963

(e) FUNDING.—Funds otherwise available under each applicable

Federal benefit program for making benefit payments under such

program are hereby made available for making compensation payments under this section in connection with such program.

(f) NO JUDICIAL REVIEW.—No action taken pursuant to this section shall be subject to judicial review.

(g) DIRECTOR’S REPORT.—Not later than April 1, 2001, the Director shall submit to each House of the Congress a report on the

activities performed by the Director pursuant to this section.

(h) DEFINITIONS.—For purposes of this section:

(1) APPLICABLE FEDERAL BENEFIT PROGRAM.—The term ‘‘applicable Federal benefit program’’ means any program of the

Government of the United States providing for regular or periodic payments or cash assistance paid directly to individual

beneficiaries, as determined by the Director of the Office of

Management and Budget.

(2) FEDERAL AGENCY.—The term ‘‘Federal agency’’ means a

department, agency, or instrumentality of the Government of the

United States.

(3) CPI COMPUTATION ERROR FOR 1999.—The term ‘‘CPI

computation error for 1999’’ means the error in the computation

of the Consumer Price Index announced by the Bureau of Labor

Statistics on September 28, 2000.

(i) TAX PROVISIONS.—In the case of taxable years (and other periods) beginning after December 31, 2000, if any Consumer Price

Index (as defined in section 1(f)(5) of the Internal Revenue Code of

1986) reflects the CPI computation error for 1999—

(1) the correct amount of such Index shall (in such manner

and to such extent as the Secretary of the Treasury determines

to be appropriate) be taken into account for purposes of such

Code, and

(2) tables prescribed under section 1(f) of such Code to reflect such correct amount shall apply in lieu of any tables that

were prescribed based on the erroneous amount.

SEC. 309. PREVENTION OF DUPLICATION OF LOSS THROUGH ASSUMPTION OF LIABILITIES GIVING RISE TO A DEDUCTION.

(a) IN GENERAL.—Section 358 (relating to basis to distributees)

is amended by adding at the end the following new subsection:

‘‘(h) SPECIAL RULES FOR ASSUMPTION OF LIABILITIES TO WHICH

SUBSECTION (d) DOES NOT APPLY.—

‘‘(1) IN GENERAL.—If, after application of the other provisions of this section to an exchange or series of exchanges, the

basis of property to which subsection (a)(1) applies exceeds the

fair market value of such property, then such basis shall be reduced (but not below such fair market value) by the amount

(determined as of the date of the exchange) of any liability—

‘‘(A) which is assumed in exchange for such property,

and

‘‘(B) with respect to which subsection (d)(1) does not

apply to the assumption.

‘‘(2) EXCEPTIONS.—Except as provided by the Secretary,

paragraph (1) shall not apply to any liability if—

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‘‘(A) the trade or business with which the liability is associated is transferred to the person assuming the liability

as part of the exchange, or

‘‘(B) substantially all of the assets with which the liability is associated are transferred to the person assuming

the liability as part of the exchange.

‘‘(3) LIABILITY.—For purposes of this subsection, the term

‘liability’ shall include any fixed or contingent obligation to

make payment, without regard to whether the obligation is otherwise taken into account for purposes of this title.’’

(b) DETERMINATION OF AMOUNT OF LIABILITY ASSUMED.—Section 357(d)(1) is amended by inserting ‘‘section 358(h),’’ after ‘‘section 358(d),’’.

(c) APPLICATION OF COMPARABLE RULES TO PARTNERSHIPS AND

S CORPORATIONS.—The Secretary of the Treasury or his delegate—

(1) shall prescribe rules which provide appropriate adjustments under subchapter K of chapter 1 of the Internal Revenue

Code of 1986 to prevent the acceleration or duplication of losses

through the assumption of (or transfer of assets subject to) liabilities described in section 358(h)(3) of such Code (as added

by subsection (a)) in transactions involving partnerships, and

(2) may prescribe rules which provide appropriate adjustments under subchapter S of chapter 1 of such Code in transactions described in paragraph (1) involving S corporations

rather than partnerships.

(d) EFFECTIVE DATES.—

(1) IN GENERAL.—The amendments made by this section

shall apply to assumptions of liability after October 18, 1999.

(2) RULES.—The rules prescribed under subsection (c) shall

apply to assumptions of liability after October 18, 1999, or such

later date as may be prescribed in such rules.

SEC. 310. DISCLOSURE OF CERTAIN INFORMATION TO CONGRESSIONAL BUDGET OFFICE.

(a) DISCLOSURE OF CERTAIN TAX INFORMATION.—

(1) IN GENERAL.—Subsection (j) of section 6103 (relating to

statistical use) is amended by adding at the end the following

new paragraph:

‘‘(6) CONGRESSIONAL BUDGET OFFICE.—Upon written request by the Director of the Congressional Budget Office, the

Secretary shall furnish to officers and employees of the Congressional Budget Office return information for the purpose of, but

only to the extent necessary for, long-term models of the social

security and medicare programs.’’

(2) RECORDKEEPING SAFEGUARDS.—Section 6103(p) is

amended—

(A) in paragraph (4)—

(i) in the matter preceding subparagraph (A), by

inserting ‘‘the Congressional Budget Office,’’ after ‘‘General Accounting Office,’’,

(ii) in subparagraph (E), by striking ‘‘commission

or the General Accounting Office’’ and inserting ‘‘commission, the General Accounting Office, or the Congressional Budget Office’’,

965

(iii) in subparagraph (F)(ii), by striking ‘‘or the

General Accounting Office,’’ and inserting ‘‘the General

Accounting Office, or the Congressional Budget Office,’’, and

(iv) in the matter following subparagraph (F), by

inserting ‘‘or the Congressional Budget Office’’ after

‘‘General Accounting Office’’ both places it appears,

(B) in paragraph (5), by striking ‘‘commissions and the

General Accounting Office’’ and inserting ‘‘commissions, the

General Accounting Office, and the Congressional Budget

Office’’, and

(C) in paragraph (6)(A), by inserting ‘‘and the Congressional Budget Office’’ after ‘‘commissions’’.

(b) CONFIDENTIALITY OF RECORDS.— (1) IN GENERAL.—Section 203 of the Congressional Budget

Act of 1974 (2 U.S.C. 603) is amended by adding at the end the

following:

‘‘(e) LEVEL OF CONFIDENTIALITY.—With respect to information,

data, estimates, and statistics obtained under sections 201(d) and

201(e), the Director shall maintain the same level of confidentiality

as is required by law of the department, agency, establishment, or

regulatory agency or commission from which it is obtained. Officers

and employees of the Congressional Budget Office shall be subject

to the same statutory penalties for unauthorized disclosure or use as

officers or employees of the department, agency, establishment, or

regulatory agency or commission from which it is obtained.’’.

(2) CONFORMING AMENDMENT.—Subsection (a) of section

203 of such Act is amended by striking ‘‘subsections (c) and (d)’’

and inserting ‘‘subsections (c), (d), and (e)’’.

Subtitle B—Technical Corrections

SEC. 311. AMENDMENTS RELATED TO TICKET TO WORK AND WORK INCENTIVES IMPROVEMENT ACT OF 1999.

(a) AMENDMENTS RELATED TO SECTION 502 OF THE ACT.—

(1) Section 280C(c)(1) is amended by striking ‘‘or credit’’

after ‘‘deduction’’ each place it appears.

(2) Section 30A is amended by redesignating subsections (f)

and (g) as subsections (g) and (h), respectively, and by inserting

after subsection (e) the following new subsection:

‘‘(f) DENIAL OF DOUBLE BENEFIT.—Any wages or other expenses

taken into account in determining the credit under this section may

not be taken into account in determining the credit under section

41.’’

(b) AMENDMENT RELATED TO SECTION 545 OF THE ACT.—

Clause (ii) of section 857(b)(7)(B) is amended to read as follows:

‘‘(ii) EXCEPTION FOR CERTAIN AMOUNTS.—Clause (i) shall not

apply to amounts received directly or indirectly by a real estate investment trust—

‘‘(I) for services furnished or rendered by a taxable REIT subsidiary that are described in paragraph (1)(B) of section 856(d), or

‘‘(II) from a taxable REIT subsidiary that are described in paragraph (7)(C)(ii) of such section.’’

(c) CLARIFICATION RELATED TO SECTION 538 OF THE ACT.—The

reference to section 332(b)(1) of the Internal Revenue Code of 1986

966

in Treasury Regulation section 1.1502–34 shall be deemed to include a reference to section 732(f) of such Code.

(d) EFFECTIVE DATE.—Subsection (c) and the amendments

made by this section shall take effect as if included in the provisions

of the Ticket to Work and Work Incentives Improvement Act of 1999

to which they relate.

SEC. 312. AMENDMENTS RELATED TO TAX AND TRADE RELIEF EXTENSION ACT OF 1998.

(a) AMENDMENT RELATED TO SECTION 1004(b) OF THE ACT.— Subsection (d) of section 6104 is amended by adding at the end the

following new paragraph:

‘‘(6) APPLICATION TO NONEXEMPT CHARITABLE TRUSTS AND

NONEXEMPT PRIVATE FOUNDATIONS.—The organizations referred

to in paragraphs (1) and (2) of section 6033(d) shall comply

with the requirements of this subsection relating to annual returns filed under section 6033 in the same manner as the organizations referred to in paragraph (1).’’.

(b) AMENDMENT RELATED TO SECTION 4003 OF THE ACT.—Subsection (b) of section 4003 of the Tax and Trade Relief Extension Act

of 1998 is amended by inserting ‘‘(7)(A)(i)(II),’’ after ‘‘(5)(A)(ii)(I),’’.

(c) EFFECTIVE DATE.—The amendments made by this section

shall take effect as if included in the provisions of the Tax and

Trade Relief Extension Act of 1998 to which they relate.

SEC. 313. AMENDMENTS RELATED TO INTERNAL REVENUE SERVICE

RESTRUCTURING AND REFORM ACT OF 1998.

(a) AMENDMENTS RELATED TO INNOCENT SPOUSE RELIEF.— (1) ELECTION MAY BE MADE ANY TIME AFTER DEFICIENCY

ASSERTED.—Subparagraph (B) of section 6015(c)(3) is amended

by striking ‘‘shall be made’’ and inserting ‘‘may be made at any

time after a deficiency for such year is asserted but’’.

(2) CLARIFICATION REGARDING DISALLOWANCE OF REFUNDS

AND CREDITS UNDER SECTION 6015(c).—

(A) IN GENERAL.—Section 6015 is amended by redesignating subsection (g) as subsection (h) and by inserting

after subsection (f) the following new subsection:

‘‘(g) CREDITS AND REFUNDS.— ‘‘(1) IN GENERAL.—Except as provided in paragraphs (2)

and (3), notwithstanding any other law or rule of law (other

than section 6511, 6512(b), 7121, or 7122), credit or refund

shall be allowed or made to the extent attributable to the application of this section.

‘‘(2) RES JUDICATA.—In the case of any election under subsection (b) or (c), if a decision of a court in any prior proceeding

for the same taxable year has become final, such decision shall

be conclusive except with respect to the qualification of the individual for relief which was not an issue in such proceeding. The

exception contained in the preceding sentence shall not apply if

the court determines that the individual participated meaningfully in such prior proceeding.

‘‘(3) CREDIT AND REFUND NOT ALLOWED UNDER SUBSECTION

(c).—No credit or refund shall be allowed as a result of an election under subsection (c).’’.

(B) CONFORMING AMENDMENT.—Paragraph (3) of section 6015(e) is amended to read as follows:

967

‘‘(3) LIMITATION ON TAX COURT JURISDICTION.—If a suit for

refund is begun by either individual filing the joint return pursuant to section 6532—

‘‘(A) the Tax Court shall lose jurisdiction of the individual’s action under this section to whatever extent jurisdiction is acquired by the district court or the United States

Court of Federal Claims over the taxable years that are the

subject of the suit for refund, and

‘‘(B) the court acquiring jurisdiction shall have jurisdiction over the petition filed under this subsection.’’.

(3) CLARIFICATIONS REGARDING REVIEW BY TAX COURT.—

(A) Paragraph (1) of section 6015(e) is amended in the

matter preceding subparagraph (A) by inserting after ‘‘individual’’ the following: ‘‘against whom a deficiency has been

asserted and’’.

(B) Subparagraph (A) of section 6015(e)(1) is amended

to read as follows:

‘‘(A) IN GENERAL.—In addition to any other remedy

provided by law, the individual may petition the Tax Court

(and the Tax Court shall have jurisdiction) to determine

the appropriate relief available to the individual under this

section if such petition is filed—

‘‘(i) at any time after the earlier of—

‘‘(I) the date the Secretary mails, by certified

or registered mail to the taxpayer’s last known address, notice of the Secretary’s final determination

of relief available to the individual, or

‘‘(II) the date which is 6 months after the date

such election is filed with the Secretary, and

‘‘(ii) not later than the close of the 90th day after

the date described in clause (i)(I).’’.

(C) Subparagraph (B)(i) of section 6015(e)(1) is

amended—

(i) by striking ‘‘until the expiration of the 90-day

period described in subparagraph (A)’’ and inserting

‘‘until the close of the 90th day referred to in subparagraph (A)(ii)’’, and

(ii) by inserting ‘‘under subparagraph (A)’’ after

‘‘filed with the Tax Court’’.

(D)(i) Subsection (e) of section 6015 is amended by

adding at the end the following new paragraph:

‘‘(5) WAIVER.—An individual who elects the application of

subsection (b) or (c) (and who agrees with the Secretary’s determination of relief) may waive in writing at any time the restrictions in paragraph (1)(B) with respect to collection of the outstanding assessment (whether or not a notice of the Secretary’s

final determination of relief has been mailed).’’.

(ii) Paragraph (2) of section 6015(e) is amended to read

as follows:

‘‘(2) SUSPENSION OF RUNNING OF PERIOD OF LIMITATIONS.—

The running of the period of limitations in section 6502 on the

collection of the assessment to which the petition under paragraph (1)(A) relates shall be suspended—

968

‘‘(A) for the period during which the Secretary is prohibited by paragraph (1)(B) from collecting by levy or a

proceeding in court and for 60 days thereafter, and

‘‘(B) if a waiver under paragraph (5) is made, from the

date the claim for relief was filed until 60 days after the

waiver is filed with the Secretary.’’.

(b) AMENDMENTS RELATED TO PROCEDURE AND ADMINISTRATION.—

(1) DISPUTES INVOLVING $50,000 OR LESS.—Section 7463 is

amended by adding at the end the following new subsection:

‘‘(f) ADDITIONAL CASES IN WHICH PROCEEDINGS MAY BE CONDUCTED UNDER THIS SECTION.—At the option of the taxpayer concurred in by the Tax Court or a division thereof before the hearing

of the case, proceedings may be conducted under this section (in the

same manner as a case described in subsection (a)) in the case of—

‘‘(1) a petition to the Tax Court under section 6015(e) in

which the amount of relief sought does not exceed $50,000, and

‘‘(2) an appeal under section 6330(d)(1)(A) to the Tax Court

of a determination in which the unpaid tax does not exceed

$50,000.’’.

(2) AUTHORITY TO ENJOIN COLLECTION ACTIONS.—

(A) Section 6330(e)(1) is amended by adding at the end

the following: ‘‘Notwithstanding the provisions of section

7421(a), the beginning of a levy or proceeding during the

time the suspension under this paragraph is in force may

be enjoined by a proceeding in the proper court, including

the Tax Court. The Tax Court shall have no jurisdiction

under this paragraph to enjoin any action or proceeding

unless a timely appeal has been filed under subsection

(d)(1) and then only in respect of the unpaid tax or proposed levy to which the determination being appealed relates.’’.

(B) Section 7421(a) is amended by inserting

‘‘6330(e)(1),’’ after ‘‘6246(b),’’.

(3) CLARIFICATION.—Paragraph (3) of section 6331(k) is

amended by striking ‘‘(3), (4), and (5)’’ and inserting ‘‘(3) and

(4)’’.

(c) AMENDMENT RELATED TO SECTION 1103 OF THE ACT.—Paragraph (6) of section 6103(k) is amended—

(1) by inserting ‘‘and an officer or employee of the Office of

Treasury Inspector General for Tax Administration’’ after ‘‘internal revenue officer or employee’’, and

(2) by striking ‘‘INTERNAL REVENUE’’ in the heading and inserting ‘‘CERTAIN’’.

(d) AMENDMENT RELATED TO SECTION 3401 OF THE ACT.—Section 6330(d)(1)(A) is amended by striking ‘‘to hear’’ and inserting

‘‘with respect to’’.

(e) AMENDMENT RELATED TO SECTION 3509 OF THE ACT.—Subparagraph (A) of section 6110(g)(5) is amended by inserting ‘‘, any

Chief Counsel advice,’’ after ‘‘technical advice memorandum’’.

(f) EFFECTIVE DATES.—The amendments made by subsections

(a) and (b) shall take effect on the date of the enactment of this Act.

The amendments made by subsections (c), (d), and (e) shall take efVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00972 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.008 pfrm03 PsN: HR1033
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fect as if included in the provisions of the Internal Revenue Service

Restructuring and Reform Act of 1998 to which they relate.

SEC. 314. AMENDMENTS RELATED TO TAXPAYER RELIEF ACT OF 1997.

(a) AMENDMENT RELATED TO SECTION 101 OF THE ACT.—Paragraph (4) of section 6211(b) is amended by striking ‘‘sections 32 and

34’’ and inserting ‘‘sections 24(d), 32, and 34’’.

(b) AMENDMENT RELATED TO SECTION 302 OF THE ACT.—The

last sentence of section 3405(e)(1)(B) is amended by inserting ‘‘(other

than a Roth IRA)’’ after ‘‘individual retirement plan’’.

(c) AMENDMENT TO SECTION 311 OF THE ACT.—Paragraph (3)

of section 311(e) of the Taxpayer Relief Act of 1997 (relating to election to recognize gain on assets held on January 1, 2001) is amended by adding at the end the following new sentence: ‘‘Such an election shall not apply to any asset which is disposed of (in a transaction in which gain or loss is recognized in whole or in part) before

the close of the 1-year period beginning on the date that the asset

would have been treated as sold under such election.’’

(d) AMENDMENT RELATED TO SECTION 402 OF THE ACT.—The

flush sentence at the end of clause (ii) of section 56(a)(1)(A) is

amended by inserting before ‘‘or to any other property’’ the following:

‘‘(and the straight line method shall be used for such 1250 property)’’.

(e) AMENDMENTS RELATED TO SECTION 1072 OF THE ACT.—

(1) Clause (ii) of section 415(c)(3)(D) and subparagraph (B)

of section 403(b)(3) are each amended by striking ‘‘section 125

or’’ and inserting ‘‘section 125, 132(f)(4), or’’.

(2) Paragraph (2) of section 414(s) is amended by striking

‘‘section 125, 402(e)(3)’’ and inserting ‘‘section 125, 132(f)(4),

402(e)(3)’’.

(f) AMENDMENT RELATED TO SECTION 1454 OF THE ACT.—Subsection (a) of section 7436 is amended by inserting before the period

at the end of the first sentence ‘‘and the proper amount of employment tax under such determination’’.

(g) EFFECTIVE DATE.—The amendments made by this section

shall take effect as if included in the provisions of the Taxpayer Relief of 1997 to which they relate.

SEC. 315. AMENDMENTS RELATED TO BALANCED BUDGET ACT OF 1997.

(a) AMENDMENTS RELATED TO SECTION 9302 OF THE ACT.—

(1) Paragraph (1) of section 9302(j) of the Balanced Budget

Act of 1997 is amended by striking ‘‘tobacco products and cigarette papers and tubes’’ and inserting ‘‘cigarettes’’.

(2)(A) Subsection (h) of section 5702 is amended to read as

follows:

‘‘(h) MANUFACTURER OF CIGARETTE PAPERS AND TUBES.—‘Manufacturer of cigarette papers and tubes’ means any person who manufactures cigarette paper, or makes up cigarette paper into tubes, except for his own personal use or consumption.’’

(B) Section 5702, as amended by subparagraph (A), is

amended by striking subsection (f) and by redesignating subsections (g) through (p) as subsections (f) through (o), respectively.

(3) Subsection (c) of section 5761 is amended by adding at

the end the following: ‘‘This subsection and section 5754 shall

970

not apply to any person who relands or receives tobacco products in the quantity allowed entry free of tax and duty under

chapter 98 of the Harmonized Tariff Schedule of the United

States, and such person may voluntarily relinquish to the Secretary at the time of entry any excess of such quantity without

incurring the penalty under this subsection. No quantity of tobacco products other than the quantity referred to in the preceding sentence may be relanded or received as a personal use

quantity.’’.

(b) EFFECTIVE DATE.—The amendments made by this section

shall take effect as if included in section 9302 of the Balanced

Budget Act of 1997.

SEC. 316. AMENDMENTS RELATED TO SMALL BUSINESS JOB PROTECTION ACT OF 1996.

(a) AMENDMENT RELATED TO SECTION 1201 OF THE ACT.—Subparagraph (B) of section 51(d)(2) is amended—

(1) by striking ‘‘plan approved’’ and inserting ‘‘program

funded’’, and

(2) by striking ‘‘(relating to assistance for needy families

with minor children)’’.

(b) AMENDMENT RELATED TO SECTION 1302 OF THE ACT.—

Clause (i) of section 1361(e)(1)(A) is amended by striking ‘‘or’’ before

‘‘(III)’’ and by adding at the end the following: ‘‘or (IV) an organization described in section 170(c)(1) which holds a contingent interest

in such trust and is not a potential current beneficiary,’’.

(c) AMENDMENT RELATED TO SECTION 1401 OF THE ACT.—

Clause (ii) of section 401(k)(10)(B) is amended by adding at the end

the following new sentence: ‘‘Such term includes a distribution of an

annuity contract from—

‘‘(I) a trust which forms a part of a plan described in section 401(a) and which is exempt from

tax under section 501(a), or

‘‘(II) an annuity plan described in section

403(a).’’.

(d) AMENDMENT RELATED TO SECTION 1427 OF THE ACT.—

Clause (ii) of section 219(c)(1)(B) is amended by striking ‘‘and’’ at

the end of subclause (I), by redesignating subclause (II) as subclause

(III), and by inserting after subclause (I) the following new subclause:

‘‘(II) the amount of any designated nondeductible contribution (as defined in section 408(o)) on

behalf of such spouse for such taxable year, and’’.

(e) EFFECTIVE DATE.—The amendments made by this section

shall take effect as if included in the provisions of the Small Business Job Protection Act of 1996 to which they relate.

SEC. 317. AMENDMENT RELATED TO REVENUE RECONCILIATION ACT

OF 1990.

(a) AMENDMENT RELATED TO SECTION 11511 OF THE ACT.—

Subparagraph (C) of section 43(c)(1) is amended—

(1) by inserting ‘‘(as defined in section 193(b))’’ after ‘‘expenses’’, and

(2) by striking ‘‘under section 193’’.

971

(b) EFFECTIVE DATE.—The amendment made by this section

shall take effect as if included in section 11511 of the Revenue Reconciliation Act of 1990.

SEC. 318. OTHER TECHNICAL CORRECTIONS.

(a) MODIFIED ENDOWMENT CONTRACTS.—

(1) Paragraph (2) of section 7702A(a) is amended by inserting ‘‘or this paragraph’’ before the period.

(2) Clause (ii) of section 7702A(c)(3)(A) is amended by striking ‘‘under the contract’’ and inserting ‘‘under the old contract’’.

(3) The amendments made by this subsection shall take effect as if included in the amendments made by section 5012 of

the Technical and Miscellaneous Revenue Act of 1988.

(b) AFFILIATED CORPORATIONS IN CONTEXT OF WORTHLESS SECURITIES.—

(1) Subparagraph (A) of section 165(g)(3) is amended to

read as follows:

‘‘(A) the taxpayer owns directly stock in such corporation meeting the requirements of section 1504(a)(2), and’’.

(2) Paragraph (3) of section 165(g) is amended by striking

the last sentence.

(3) The amendments made by this subsection shall apply to

taxable years beginning after December 31, 1984.

(c) CERTAIN ANNUITIES ISSUED BY TAX-EXEMPT ORGANIZATIONS

NOT TREATED AS DEBT INSTRUMENTS UNDER ORIGINAL ISSUE DISCOUNT RULES.—

(1) Clause (ii) of section 1275(a)(1)(B) is amended by striking ‘‘subchapter L’’ and inserting ‘‘subchapter L (or by an entity

described in section 501(c) and exempt from tax under section

501(a) which would be subject to tax under subchapter L were

it not so exempt)’’.

(2) The amendment made by this subsection shall take effect as if included in the amendments made by section 41 of the

Tax Reform Act of 1984.

(d) TENTATIVE CARRYBACK ADJUSTMENTS OF LOSSES FROM

SECTION 1256 CONTRACTS.—

(1) Subsection (a) of section 6411 is amended by striking

‘‘section 1212(a)(1)’’ and inserting ‘‘subsection (a)(1) or (c) of section 1212’’.

(2) The amendment made by paragraph (1) shall take effect

as if included in the amendments made by section 504 of the

Economic Recovery Tax Act of 1981.

(e) CORRECTION OF CALCULATION OF AMOUNTS TO BE DEPOSITED IN HIGHWAY TRUST FUND.—

(1) Subsection (b) of section 9503 is amended by striking

paragraph (5) and redesignating paragraph (6) as paragraph

(5).

(2) The amendment made by paragraph (1) shall apply

with respect to taxes received in the Treasury after the date of

the enactment of this Act.

(f) EXPENDITURES FROM VACCINE INJURY COMPENSATION

TRUST FUND.—Section 9510(c)(1)(A) is amended by striking ‘‘December 31, 1999’’ and inserting ‘‘October 18, 2000’’.

972

SEC. 319. CLERICAL CHANGES.

(1) Clause (i) of section 45(d)(7)(A) is amended by striking

‘‘paragraph (3)(A)’’ and inserting ‘‘subsection (c)(3)(A)’’.

(2) Subsection (f) of section 67 is amended by striking ‘‘the

last sentence’’ and inserting ‘‘the second sentence’’.

(3) The heading for paragraph (5) of section 408(d) is

amended to read as follows:

‘‘(5) DISTRIBUTIONS OF EXCESS CONTRIBUTIONS AFTER DUE

DATE FOR TAXABLE YEAR AND CERTAIN EXCESS ROLLOVER CONTRIBUTIONS.—’’.

(4) Paragraph (3) of section 475(g) is amended by striking

‘‘267(b) of’’ and inserting ‘‘267(b) or’’.

(5) The heading for subparagraph (B) of section 529(e)(3) is

amended by striking ‘‘UNDER GUARANTEED PLANS’’.

(6) Clause (iii) of section 530(d)(4)(B) is amended by striking ‘‘; or’’ at the end and inserting ‘‘, or’’.

(7) Paragraphs (1)(C) and (2)(C) of section 664(d) are each

amended by striking the period after ‘‘subsection (g))’’.

(8)(A) Subsection (e) of section 678 is amended by striking

‘‘an electing small business corporation’’ and inserting ‘‘an S

corporation’’.

(B) Clause (v) of section 6103(e)(1)(D) is amended to read

as follows:

‘‘(v) if the corporation was an S corporation, any

person who was a shareholder during any part of the

period covered by such return during which an election

under section 1362(a) was in effect, or’’.

(9) Paragraph (7) of section 856(c) is amended by striking

‘‘paragraph (4)(B)(ii)(III)’’ and inserting ‘‘paragraph

(4)(B)(iii)(III)’’.

(10) Subparagraph (A) of section 856(l)(4) is amended by

striking ‘‘paragraph (9)(D)(ii)’’ and inserting ‘‘subsection

(d)(9)(D)(ii)’’.

(11) Subparagraph (B) of section 871(f)(2) is amended by

striking ‘‘19 U.S.C.’’ and inserting ‘‘(19 U.S.C.’’.

(12) Subparagraph (B) of section 995(b)(3) is amended by

striking ‘‘the Military Security Act of 1954 (22 U.S.C. 1934)’’

and inserting ‘‘section 38 of the International Security Assistance and Arms Export Control Act of 1976 (22 U.S.C. 2778)’’.

(13) Section 1391(g)(3)(C) is amended by striking ‘‘paragraph (1)(B)’’ and inserting ‘‘paragraph (1)’’.

(14)(A) Paragraph (2) of section 2035(c) is amended by

striking ‘‘paragraph (1)’’ and inserting ‘‘subsection (a)’’.

(B) Subsection (d) of section 2035 is amended by inserting

‘‘and paragraph (1) of subsection (c)’’ after ‘‘Subsection (a)’’.

(15) Paragraph (5) of section 3121(a) is amended by striking the semicolon at the end of subparagraph (G) and inserting

a comma.

(16) Subparagraph (B) of section 4946(c)(3) is amended by

striking ‘‘the lowest rate of compensation prescribed for GS–16

of the General Schedule under section 5332’’ and inserting ‘‘the

lowest rate of basic pay for the Senior Executive Service under

section 5382’’.

(17) Subsection (p) of section 6103 is amended—

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(A) in paragraph (4), in the matter preceding subparagraph (A)—

(i) by striking the second comma after ‘‘(13)’’, and

(ii) by striking ‘‘(7)’’ and all that follows through

‘‘shall, as a condition’’ and inserting ‘‘(7), (8), (9), (12),

(15), or (16) or any other person described in subsection

(l)(16) shall, as a condition’’, and

(B) in paragraph (4)(F)(ii), by striking the second

comma after ‘‘(14)’’.

(18) Paragraph (5) of section 6166(k) is amended by striking ‘‘2035(d)(4)’’ and inserting ‘‘2035(c)(2)’’.

(19) Subsection (a) of section 6512 is amended by striking

‘‘; and’’ at the end of paragraphs (1), (2), and (5) and inserting

‘‘, and’’.

(20) Paragraph (1) of section 6611(g) is amended by striking the comma after ‘‘(b)(3)’’.

(21) Subparagraphs (A) and (B) of section 6655(e)(5) are

amended by striking ‘‘subsections (d)(5) and (l)(3)(B)’’ and inserting ‘‘subsection (d)(5)’’.

(22) The subchapter heading for subchapter D of chapter 67

is amended by capitalizing the first letter of the second word.

(23)(A) Section 6724(d)(1)(B) is amended by striking

clauses (xiv) through (xvii) and inserting the following:

‘‘(xiv) subparagraph (A) or (C) of subsection (c)(4)

of section 4093 (relating to information reporting with

respect to tax on diesel and aviation fuels),

‘‘(xv) section 4101(d) (relating to information reporting with respect to fuels taxes),

‘‘(xvi) subparagraph (C) of section 338(h)(10) (relating to information required to be furnished to the

Secretary in case of elective recognition of gain or loss),

or

‘‘(xvii) section 264(f)(5)(A)(iv) (relating to reporting

with respect to certain life insurance and annuity contracts), and’’.

(B) Section 6010(o)(4)(C) of the Internal Revenue Service

Restructuring and Reform Act of 1998 is amended by striking

‘‘inserting ‘or’, and by adding at the end’’ and inserting ‘‘inserting ‘, or’, and by adding after subparagraph (Z)’’.

(24) Subsection (a) of section 7421 is amended by striking

‘‘6672(b)’’ and inserting ‘‘6672(c)’’.

(25) Paragraph (3) of section 7430(c) is amended—

(A) in the paragraph heading, by striking ‘‘ATTORNEYS’’

and inserting ‘‘ATTORNEYS’ ’’, and

(B) in subparagraph (B), by striking ‘‘attorneys fees’’

each place it appears and inserting ‘‘attorneys’ fees’’.

(26) Paragraph (2) of section 7603(b) is amended by striking the semicolon at the end of subparagraphs (A), (B), (C), (D),

(E), (F), and (G) and inserting a comma.

(27) Clause (ii) of section 7802(b)(2)(B) is amended by striking ‘‘; and’’ at the end and inserting ‘‘, and’’.

(28) Paragraph (3) of section 7811(a) is amended by striking ‘‘taxpayer assistance order’’ and inserting ‘‘Taxpayer Assistance Order’’.

974

(29) Paragraph (1) of section 7811(d) is amended by striking ‘‘Ombudsman’s’’ and inserting ‘‘National Taxpayer Advocate’s’’.

(30) Paragraph (3) of section 7872(f) is amended by striking

‘‘foregoing’’ and inserting ‘‘forgoing’’.

TITLE IV—TAX TREATMENT OF SECURITIES FUTURES

CONTRACTS

SEC. 401. TAX TREATMENT OF SECURITIES FUTURES CONTRACTS.

(a) IN GENERAL.—Subpart IV of subchapter P of chapter 1 (relating to special rules for determining gains and losses) is amended

by inserting after section 1234A the following new section:

‘‘SEC. 1234B. GAINS OR LOSSES FROM SECURITIES FUTURES CONTRACTS.

‘‘(a) TREATMENT OF GAIN OR LOSS.—

‘‘(1) IN GENERAL.—Gain or loss attributable to the sale or

exchange of a securities futures contract shall be considered

gain or loss from the sale or exchange of property which has the

same character as the property to which the contract relates has

in the hands of the taxpayer (or would have in the hands of the

taxpayer if acquired by the taxpayer).

‘‘(2) NONAPPLICATION OF SUBSECTION.—This subsection

shall not apply to—

‘‘(A) a contract which constitutes property described in

paragraph (1) or (7) of section 1221(a), and

‘‘(B) any income derived in connection with a contract

which, without regard to this subsection, is treated as other

than gain from the sale or exchange of a capital asset.

‘‘(b) SHORT-TERM GAINS AND LOSSES.—Except as provided in

the regulations under section 1092(b) or this section, if gain or loss

on the sale or exchange of a securities futures contract to sell property is considered as gain or loss from the sale or exchange of a capital asset, such gain or loss shall be treated as short-term capital

gain or loss.

‘‘(c) SECURITIES FUTURES CONTRACT.—For purposes of this section, the term ‘securities futures contract’ means any security future

(as defined in section 3(a)(55)(A) of the Securities Exchange Act of

1934, as in effect on the date of the enactment of this section).

‘‘(d) CONTRACTS NOT TREATED AS COMMODITY FUTURES CONTRACTS.—For purposes of this title, a securities futures contract

shall not be treated as a commodity futures contract.

‘‘(e) REGULATIONS.—The Secretary shall prescribe such regulations as may be appropriate to provide for the proper treatment of

securities futures contracts under this title.’’

(b) TERMINATIONS, ETC.—Section 1234A is amended—

(1) by inserting ‘‘(other than a securities futures contract, as

defined in section 1234B)’’ after ‘‘right or obligation’’ in paragraph (1),

(2) by striking ‘‘or’’ at the end of paragraph (1),

(3) by adding ‘‘or’’ at the end of paragraph (2), and

(4) by inserting after paragraph (2) the following new paragraph:

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‘‘(3) a securities futures contract (as so defined) which is a

capital asset in the hands of the taxpayer,’’.

(c) NONRECOGNITION UNDER SECTION 1032.—The second sentence of section 1032(a) is amended by inserting ‘‘, or with respect

to a securities futures contract (as defined in section 1234B),’’ after

‘‘an option’’.

(d) TREATMENT UNDER WASH SALES RULES.—Section 1091 is

amended by adding at the end the following new subsection:

‘‘(f) CASH SETTLEMENT.—This section shall not fail to apply to

a contract or option to acquire or sell stock or securities solely by

reason of the fact that the contract or option settles in (or could be

settled in) cash or property other than such stock or securities.’’

(e) TREATMENT UNDER STRADDLE RULES.—Clause (i) of section

1092(d)(3)(B) is amended by striking ‘‘or’’ at the end of subclause (I),

by redesignating subclause (II) as subclause (III), and by inserting

after subclause (I) the following new subclause:

‘‘(II) a securities futures contract (as defined in

section 1234B) with respect to such stock or substantially identical stock or securities, or’’.

(f) TREATMENT UNDER SHORT SALES RULES.—Paragraph (2) of

section 1233(e) is amended by striking ‘‘and’’ at the end of subparagraph (B), by striking the period at the end of subparagraph (C)

and inserting ‘‘; and’’, and by adding at the end the following:

‘‘(D) a securities futures contract (as defined in section

1234B) to acquire substantially identical property shall be

treated as substantially identical property.’’

(g) TREATMENT UNDER SECTION 1256.—

(1)(A) Subsection (b) of section 1256 is amended by striking

‘‘and’’ at the end of paragraph (3), by striking the period at the

end of paragraph (4) and inserting ‘‘, and’’, and by adding at

the end the following:

‘‘(5) any dealer securities futures contract.

The term ‘section 1256 contract’ shall not include any securities futures contract or option on such a contract unless such contract or

option is a dealer securities futures contract.’’

(B) Subsection (g) of section 1256 is amended by adding at

the end the following new paragraph:

‘‘(9) DEALER SECURITIES FUTURES CONTRACT.—

‘‘(A) IN GENERAL.—The term ‘dealer securities futures

contract’ means, with respect to any dealer, any securities

futures contract, and any option on such a contract,

which—

‘‘(i) is entered into by such dealer (or, in the case

of an option, is purchased or granted by such dealer)

in the normal course of his activity of dealing in such

contracts or options, as the case may be, and

‘‘(ii) is traded on a qualified board or exchange.

‘‘(B) DEALER.—For purposes of subparagraph (A), a

person shall be treated as a dealer in securities futures contracts or options on such contracts if the Secretary determines that such person performs, with respect to such contracts or options, as the case may be, functions similar to

the functions performed by persons described in paragraph

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(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 narrowbased 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.’’

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1 H.R. 5542 was incorporated by reference into the conference agreement that accompanied

H.R. 2614 (H. Rpt. 106–1004), which was passed by the House of Representatives on October

26, 2000. 2 In making the designations, the Secretary of HUD must consult with the Secretaries of

Agriculture, Commerce, Labor, Treasury, the Director of the Office of Management and Budget;

and the Administrator of the Small Business Administration (and the Secretary of the Interior

in the case of an area within an Indian reservation).

(j) EFFECTIVE DATE.—The amendments made by this section

shall take effect on the date of the enactment of this Act.

COMMUNITY RENEWAL TAX RELIEF ACT OF 2000

Following is explanatory language on H.R. 5662, as introduced

on December 14, 2000.

The conferees on H.R. 4577 agree with the matter included in

H.R. 5662 and enacted in this conference report by reference and

the following description of it.

TITLE I.—COMMUNITY RENEWAL PROVISIONS

A. RENEWAL COMMUNITY PROVISIONS (SECS. 101–102 OF THE BILL

AND SECS. 51, 469, AND NEW SECS. 1400E–J OF THE CODE)

PRESENT LAW

In recent years, provisions have been added to the Internal

Revenue Code that target specific geographic areas for special Federal income tax treatment. For example, empowerment zones and

enterprise communities generally provide tax incentives for businesses that locate within certain geographic areas designated by

the Secretaries of Housing and Urban Development (‘HUD’’) and

Agriculture.

HOUSE BILL

No provision. However, H.R. 5542 1 authorizes the designation

of 40 ‘‘renewal communities’’ within which special tax incentives

would be available. The following is a description of the designation

process and the tax incentives that would be available within the

renewal communities.

Designation process

Designation of 40 renewal communities.—The Secretary of

HUD,2 is authorized to designate up to 40 ‘‘renewal communities’’

from areas nominated by States and local governments. At least 12

of the designated communities must be in rural areas. Of the 12

rural renewal communities, one shall be an area within Mississippi, designated by the State of Mississippi, that includes at

least one census tract within Madison County, Mississippi.

The Secretary of HUD is required to publish (within four

months after enactment) regulations describing the nomination and

selection process. Designations of renewal communities are to be

made during the period beginning on the first day of the first

month after the regulations are published and ending on December

31, 2001. The designation of an area as a renewal community genVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00981 Fmt 6601 Sfmt 6601 E:\HR\OC\HR1033.008 pfrm03 PsN: HR1033
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3The designation would terminate earlier than December 31, 2009, if (1) an earlier termination date is designated by the State or local government in their designation, or (2) the Secretary of HUD revokes the designation as of an earlier date. 4Determined using 1990 census data.

5The designation of a nominated area within the District of Columbia as a renewal community becomes effective on January 1, 2003 (upon the expiration of the designation of the District

of Columbia Enterprise Zone).

erally will be effective on January 1, 2002, and will terminate after

December 31, 2009.3

Eligibility criteria.—To be designated as a renewal community,

a nominated area must meet the following criteria: (1) each census

tract must have a poverty rate of at least 20 percent; 4 (2) in the

case of an urban area, at least 70 percent of the households have

incomes below 80 percent of the median income of households within the local government jurisdiction; (3) the unemployment rate is

at least 1.5 times the national unemployment rate; and (4) the area

is one of pervasive poverty, unemployment, and general distress.

Those areas with the highest average ranking of eligibility factors

(1), (2), and (3) above would be designated as renewal communities.

One nominated area within the District of Columbia becomes a renewal community (without regard to its ranking of eligibility factors) provided that it satisfies the area and eligibility requirements

and the required State and local commitments described below.5

The Secretary of HUD shall take into account in selecting areas for

designation the extent to which such areas have a high incidence

of crime, as well as whether the area has census tracts identified

in the May 12, 1998, report of the General Accounting Office regarding the identification of economically distressed areas. In lieu

of the poverty, income, and unemployment criteria, outmigration

may be taken into account in the designation of one rural renewal

community.

There are no geographic size limitations placed on renewal

communities. Instead, the boundary of a renewal community must

be continuous. In addition, the renewal community must have a

minimum population of 4,000 if the community is located within a

metropolitan statistical area (at least 1,000 in all other cases), and

a maximum population of not more than 200,000. The population

limitations do not apply to any renewal community that is entirely

within an Indian reservation.

Required State and local commitments.—In order for an area

to be designated as a renewal community, State and local governments are required to submit a written course of action in which

the State and local governments promise to take at least four of the

following governmental actions within the nominated area: (1) a reduction of tax rates or fees; (2) an increase in the level of efficiency

of local services; (3) crime reduction strategies; (4) actions to remove or streamline governmental requirements; (5) involvement by

private entities and community groups, such as to provide jobs and

job training and financial assistance; and (6) the gift (or sale at

below fair market value) of surplus realty by the State or local government to community organizations or private companies.

In addition, the nominating State and local governments must

promise to promote economic growth in the nominated area by repealing or not enforcing four of the following: (1) licensing requirements for occupations that do not ordinarily require a professional

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6 If a renewal community designation is terminated prior to December 31, 2009, the tax incentives would cease to be available as of the termination date. 7 An ‘‘enterprise zone business’’ is defined in section 1397B.

degree; (2) zoning restrictions on home-based businesses that do

not create a public nuisance; (3) permit requirements for street

vendors who do not create a public nuisance; (4) zoning or other restrictions that impede the formation of schools or child care centers; and (5) franchises or other restrictions on competition for

businesses providing public services, including but not limited to

taxicabs, jitneys, cable television, or trash hauling, unless such regulations are necessary for and well-tailored to the protection of

health and safety.

Empowerment zones and enterprise communities seeking designation as renewal communities.—With respect to the first 20 designations of nominated areas as renewal communities, preference

will be given to nominated areas that are enterprise communities

and empowerment zones under present law that otherwise meet

the requirements for designation as a renewal community. An empowerment zone or enterprise community can apply for designation

as a renewal community. If a renewal community designation is

granted, then an area’s designation as an empowerment zone enterprise community ceases as of the date the area’s designation as

a renewal community takes effect.

Tax incentives for renewal communities

The following tax incentives generally are available during the

period beginning January 1, 2002, and ending December 31, 2009.6

Zero-percent capital gain rate.—A zero-percent capital gains

rate applies with respect to gain from the sale of a qualified community asset acquired after December 31, 2001, and before January 1, 2010, and held for more than five years. A ‘‘qualified community asset’’ includes: (1) qualified community stock (meaning original-issue stock purchased for cash in a renewal community business); (2) a qualified community partnership interest (meaning a

partnership interest acquired for cash in a renewal community

business); (3) qualified community business property (meaning tangible property originally used in a renewal community business by

the taxpayer) that is purchased or substantially improved after December 31, 2001.

A ‘‘renewal community business’’ is similar to the present-law

definition of an enterprise zone business.7 Property will continue to

be a qualified community asset if sold (or otherwise transferred) to

a subsequent purchaser, provided that the property continues to

represent an interest in (or tangible property used in) a renewal

community business. The termination of an area’s status as a renewal community will not affect whether property is a qualified

community asset, but any gain attributable to the period before

January 1, 2002, or after December 31, 2014, will not be eligible

for the zero-percent rate.

Renewal community employment credit.—A 15-percent wage

credit is available to employers for the first $10,000 of qualified

wages paid to each employee who (1) is a resident of the renewal

community, and (2) performs substantially all employment services

980

within the renewal community in a trade or business for the employer.

The wage credit rate applies to qualifying wages paid after December 31, 2001, and before January 1, 2010. Wages that qualify

for the credit are wages that are considered ‘‘qualified zone wages’’

for purposes of the empowerment zone wage credit (including coordination with the Work Opportunity Tax Credit). In general, any

taxable business carrying out activities in the renewal community

may claim the wage credit.

Commercial revitalization deduction.—Each State is permitted to allocate up to $12 million of ‘‘commercial revitalization expenditures’’ to each renewal community located within the State for each

calendar year after 2001 and before 2010. The appropriate State

agency will make the allocations pursuant to a qualified allocation

plan.

A ‘‘commercial revitalization expenditure’’ means the cost of a

new building or the cost of substantially rehabilitating an existing

building. The building must be used for commercial purposes and

be located in a renewal community. In the case of the rehabilitation

of an existing building, the cost of acquiring the building will be

treated as qualifying expenditures only to the extent that such

costs do not exceed 30 percent of the other rehabilitation expenditures. The qualifying expenditures for any building cannot exceed

$10 million.

A taxpayer can elect either to (a) deduct one-half of the commercial revitalization expenditures for the taxable year the building is placed in service or (b) amortize all the expenditures ratably

over the 120-month period beginning with the month the building

is placed in service. No depreciation is allowed for amounts deducted under this provision. The adjusted basis is reduced by the

amount of the commercial revitalization deduction, and the deduction is treated as a depreciation deduction in applying the depreciation recapture rules (e.g., sec. 1250). The commercial revitalization

deduction is treated in the same manner as the low-income housing

credit in applying the passive loss rules (sec. 469). Thus, up to

$25,000 of deductions (together with the other deductions and credits not subject to the passive loss limitation by reason of section

469(i)) are allowed to an individual taxpayer regardless of the taxpayer’s adjusted gross income. The commercial revitalization deduction is allowed in computing a taxpayer’s alternative minimum

taxable income.

Additional section 179 expensing.—A renewal community business is allowed an additional $35,000 of section 179 expensing for

qualified renewal property placed in service after December 31,

2001, and before January 1, 2010. The section 179 expensing allowed to a taxpayer is phased out by the amount by which 50 percent of the cost of qualified renewal property placed in service during the year by the taxpayer exceeds $200,000. The term ‘‘qualified

renewal property’’ is similar to the definition of ‘‘qualified zone

property’’ used in connection with empowerment zones.

Extension of work opportunity tax credit (‘‘WOTC’’).—The bill

expands the high-risk youth and qualified summer youth categories

in the WOTC to include qualified individuals who live in a renewal

community.

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8S. 3152 was introduced by Senator Roth and others on October 3, 2000.

9 Any gain attributable to the period before January 1, 2002, or after December 31, 2014,

would not be eligible for the zero-percent capital gains rate.

GAO report

The General Accounting Office will audit and report to Congress on January 31, 2004, and again in 2007 and 2010, on the renewal community program and its effect on poverty, unemployment, and economic growth within the designated renewal communities.

Effective date

Renewal communities must be designated during the period

beginning on the first day of the first month after the publication

of regulations by HUD and ending on December 31, 2001, The tax

benefits available in renewal communities are effective for the period beginning January 1, 2002, and ending December 31, 2009.

SENATE AMENDMENT

No provision. However, S. 3152 8 authorizes the Secretaries of

HUD and Agriculture to designate up to 30 renewal zones from

areas nominated by States and local governments. At least six of

the designated renewal zones must be in rural areas. The Secretary

of HUD is required to publish (within four months after enactment)

regulations describing the nomination and selection process. Designations of renewal zones must be made before January 1, 2002,

and the designations are effective for the period beginning on January 1, 2002, through December 31, 2009.

The eligibility criteria (as well as the population and geographic limitations) are similar to those for renewal communities

in the House bill, except that S. 3152 provides that any State without any empowerment zone would be given priority in the designation process. Also, the designations of renewal zones must result in

(after taking into account existing empowerment zones) each State

having at least one zone designation (empowerment or renewal

zone). In addition, S. 3152 provides that, in lieu of the poverty, income, and unemployment criteria, outmigration may be taken into

account in the designation of one rural renewal zone. Under a separate provision in S. 3152, the designation of the District of Columbia Enterprise Zone is entended through December 31, 2006.

In order for an area to be designated as a renewal zone, State

and local governments are required to submit a written course of

action in which the State and local governments promise to take

at least four of the governmental actions described in the House

bill with respect to renewal communities. However, S. 3152 does

not contain any of the economic growth provision requirements described in the House bill.

Tax incentives for renewal zones.—Under S. 3152, businesses in

renewal zones would be eligible for the following tax incentives

during the period beginning January 1, 2002 and ending December

31, 2009: (1) a zero-percent capital gains rate for qualifying assets

limited to an aggregate amount not to exceed $25 million of gain

per taxpayer; 9 (2) a 15-percent wage credit for the first $15,000 of

qualifying wages; (3) $35,000 in additional 179 expensing for qualiVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00985 Fmt 6601 Sfmt 6601 E:\HR\OC\HR1033.008 pfrm03 PsN: HR1033
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10For wages paid in calendar years during the period 1994 through 2001, the credit rate

is 20 percent. The credit rate is reduced to 15 percent for calendar year 2002, 10 percent for

calendar year 2003, and 5 percent for calendar year 2004. No wage credit is available after 2004

in the original nine empowerment zones. 11 Except for the wage credit, which is reduced to 15 percent for calendar year 2005, and

then reduced by five percentage points in each year in 2006 and 2007, with no wage credit available after 2007.

fying property; (4) and the enhanced tax-exempt bond rules that

currently apply to businesses in the Round II empowerment zones.

GAO report.—The General Accounting Office will audit and report to Congress every three years (beginning on January 31, 2004)

on the renewal zone program and its effect on poverty, unemployment, and economic growth within the designated renewal zones.

Effective date.—The 30 renewal zones must be designated by

January 1, 2002, and the tax benefits are available for the period

beginning January 1, 2002, and ending December 31, 2009.

CONFERENCE AGREEMENT

The conference agreement follows H.R. 5542 with the following

modifications. The conference agreement does not include the rural

renewal community designation with respect to an area within the

State of Mississippi. The conference agreement does not include the

special rule that provides that one nominated area within the District of Columbia becomes a renewal community (without regard to

its ranking of eligibility factors).

B. EMPOWERMENT ZONE TAX INCENTIVES

1. Extension and expansion of empowerment zones (secs. 111–115

of the bill and secs. 1391, 1394, 1396, and 1397A of the Code)

PRESENT LAW

Round I empowerment zones

The Omnibus Budget Reconciliation Act of 1993 (‘‘OBRA 1993’’)

authorized the designation of nine empowerment zones (‘‘Round I

empowerment zones’’) to provide tax incentives for businesses to locate within targeted areas designated by the Secretaries of HUD

and Agriculture. The Taxpayer Relief Act of 1997 (‘‘1997 Act’’) authorized the designation of two additional Round I urban empowerment zones.

Businesses in the 11 Round I empowerment zones qualify for

the following tax incentives: (1) a 20-percent wage credit for the

first $15,000 of wages paid to a zone resident who works in the empowerment zone,10 (2) an additional $20,000 of section 179 expensing for qualifying zone property, and (3) tax-exempt financing for

certain qualifying zone facilities. The tax incentives with respect to

the empowerment zones designated by OBRA 1993 generally are

available during the 10-year period of 1995 through 2004. The tax

incentives with respect to the two additional Round I empowerment zones generally are available during the 10-year period of

2000 through 2009.11

Round II empowerment zones

The 1997 Act also authorized the designation of 20 additional

empowerment zones (‘‘Round II empowerment zones’’), of which 15

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12The additional $35,000 of section 179 expensing is available throughout all areas that are

part of a designated empowerment zone, including the non-contiguous ‘‘developable sites’’ that

were allowed to be part of the designated Round II empowerment zones under the 1997 Act. 13The present-law rules of sections 1394 and 1400A continue to apply with respect to the

D.C. Enterprise Zone.

are located in urban areas and five are located in rural areas. Businesses in the Round II empowerment zones are not eligible for the

wage credit, but are eligible to receive up to $20,000 of additional

section 179 expensing. Businesses in the Round II empowerment

zones also are eligible for more generous tax-exempt financing benefits than those available in the Round I empowerment zones. Specifically, the tax-exempt financing benefits for the Round II empowerment zones are not subject to the State private activity bond

volume caps (but are subject to separate per-zone volume limitations), and the per-business size limitations that apply to the

Round I empowerment zones and enterprise communities (i.e., $3

million for each qualified enterprise zone business with a maximum of $20 million for each principal user for all zones and communities) do not apply to qualifying bonds issued for Round II empowerment zones. The tax incentives with respect to the Round II

empowerment zones generally are available during the 10-year period of 1999 through 2008.

HOUSE BILL

No provision. However, H.R. 5542 conforms and enhances the

tax incentives for the Round I and Round II empowerment zones

and extends their designations through December 31, 2009. The

bill also authorizes the designation of nine new empowerment

zones (‘‘Round III empowerment zones’’).

Extension of tax incentives for Round I and Round II empowerment

zones

The designation of empowerment zone status for Round I and

II empowerment zones (other than the District of Columbia Enterprise Zone) is extended through December 31, 2009. In addition,

the 20-percent wage credit is made available in all Round I and II

empowerment zones for qualifying wages paid or incurred after December 31, 2001. The credit rate remains at 20 percent (rather

than being phased down) through December 31, 2009, in Round I

and Round II empowerment zones.

In addition, $35,000 (rather than $20,000) of additional section

179 expensing is available for qualified zone property placed in

service in taxable years beginning after December 31, 2001, by a

qualified business in any of the empowerment zones.12 Businesses

in the D.C. Enterprise Zone are entitled to the additional section

179 expensing until the termination of the D.C. Enterprise zone

designation.

Businesses located in Round I empowerment zones (other than

the D.C. Enterprise Zone) 13 also are eligible for the more generous

tax-exempt bond rules that apply under present law to businesses

in the Round II empowerment zones (sec. 1394(f)). The bill applies

to tax-exempt bonds issued after December 31, 2001. Bonds that

have been issued by businesses in Round I zones before January

1, 2002, are not taken into account in applying the limitations on

984

the amount of new empowerment zone facility bonds that can be

issued under the bill.

Nine new empowerment zones

The Secretaries of HUD and Agriculture are authorized to designate nine additional empowerment zones (‘‘Round III empowerment zones’’). Seven of the Round III empowerment zones will be

located in urban areas, and two will be located in rural areas.

The eligibility and selection criteria for the Round III empowerment zones are the same as the criteria that applied to the

Round II empowerment zones. The Round III empowerment zones

must be designated by January 1, 2002, and the tax incentives

with respect to the Round III empowerment zones generally are

available during the period beginning on January 1, 2002, and ending on December 31, 2009.

Busineses in the Round III empowerment zones are eligible for

the same tax incentives that, under the bill, are available to Round

I and Round II empowerment zones (i.e., a 20-percent wage credit,

an additional $35,000 of section 179 expensing, and the enhanced

tax-exempt financing benefits presently available to Round II empowerment zones).

GAO report

The bill provides that the GAO will audit and report to Congress on January 31, 2004, and again in 2007 and 2010, on the empowerment zone and enterprise community program and its effect

on poverty, unemployment, and economic growth within the designated areas.

Effective date

The extension of the existing empowerment zone designations

is effective after the date of enactment. The extension of the tax

benefits to existing empowerment zones (i.e., the expanded wage

credit, the additional section 179 expensing, and the more generous

tax-exempt bond rules) generally is effective after December 31,

2001. The new Round III empowerment zones must be designated

by January 1, 2002, and the tax incentives with respect to the

Round III empowerment zones generally are available during the

period beginning on January 1, 2002, and ending on December 31,

2009.

SENATE AMENDMENT

No provision. However, S. 3152 contains a provision that conforms and enhances incentives of existing empowerment zones.

Specifically, the provision extends the designation of empowerment

zone status for Round I and II empowerment zones through December 31, 2009. In addition, a 15-percent wage credit is made available in all Round I and II empowerment zones, effective in 2002

(except in the case of the two additional Round I empowerment

zones added by the 1997 Act, for which the 15-percent wage credit

takes effect in 2005 as scheduled under present law). For all the

empowerment zones, the 15-percent wage credit expires on December 31, 2009.

985

As in the House bill, $35,000 (rather than $20,000) in additional section 179 expensing is made available for qualified zone

property placed in service in taxable years beginning after December 31, 2001, by a qualified business in any of the empowerment

zones. Similarly, S. 3152 extends to businesses located in Round I

empowerment zones the more generous tax-exempt bond rules that

apply under present law to businesses in the Round II empowerment zones (sec. 1394(f)) for bonds issued after December 31, 2001.

Businesses located in any empowerment zone also qualify for

a zero-percent capital gains rate for gain from the sale of a qualifying zone assets acquired after date of enactment and before January 1, 2010, and held for more than five years. Assets that qualify

for this incentive are similar to the types of assets that qualify for

the present-law zero percent capital gains rate for qualifying D.C.

Zone assets. The zero-percent capital gains rate is limited to an aggregate amount not to exceed $25 million of gain per taxpayer.

Gain attributable to the period before the date of enactment or

after December 31, 2014, is not eligible for the zero-percent rate.

Effective date.—The extension of the existing empowerment

zone designations is effective after the date of enactment. The additional section 179 expensing and the more generous tax-exempt

bond rules for the existing empowerment zones is effective after

December 31, 2001. The zero-percent capital gains rate applies to

qualifying property purchased after the date of enactment. The 15-

percent wage credit generally is effective for qualifying wages paid

after December 31, 2001 (December 31, 2004 for the two additional

Round I empowerment zones).

CONFERENCE AGREEMENT

The conference agreement follows H.R. 5542. The conference

agreement also provides that the Secretaries of HUD and Agriculture are authorized to designate a replacement empowerment

zone for each empowerment zone that becomes a renewal community. The replacement empowerment zone will have the same

urban or rural character as the empowerment zone that it is replacing.

2. Rollover of gain from the sale of qualified empowerment zone investments (sec. 116 of the bill and new sec. 1397B of the Code)

PRESENT LAW

In general, gain or loss is recognized on any sale, exchange, or

other disposition of property. A taxpayer (other than a corporation)

may elect to roll over without payment of tax any capital gain realized upon the sale of qualified small business stock held for more

than six months where the taxpayer uses the proceeds to purchase

other qualified small business stock within 60 days of the sale of

the original stock.

HOUSE BILL

No provision. However, H.R. 5542 provides that a taxpayer can

elect to roll over capital gain from the sale or exchange of any

qualified empowerment zone asset purchased after the date of enactment and held for more than one year (‘‘original zone asset’’)

986

14See section 1045 for rollover of qualified small business stock to other small business

stock. 15 However, a qualifying D.C. Zone asset held for more than five years is eligible for a 100-

percent capital gains exclusion (sec. 1400B). 16The portion of the capital gain included in income is subject to a maximum regular tax

rate of 28 percent, and 42 percent of the excluded gain is a minimum tax preference.

where the taxpayer uses the proceeds to purchase other qualifying

empowerment zone assets in the same zone (‘‘replacement zone

asset’’) within 60 days of the sale of the original zone asset. The

holding period of the replacement zone asset includes the holding

period of the original zone asset, except that the replacement asset

must actually be held for more than one year to qualify for another

tax-free rollover. The basis of the replacement zone asset is reduced

by the gain not recognized on the rollover. However, if the replacement zone asset is qualified small business stock (as defined in sec.

1202), the exclusion under section 1202 would not apply to gain accrued on the original zone asset.14 A ‘‘qualified empowerment zone

asset’’ means an asset that would be a qualified community asset

if the empowerment zone were a renewal community (and the asset

is acquired after the date of enactment of the bill). Assets in the

D.C. Enterprise Zone are not eligible for the tax-free rollover treatment.15

Effective date.—The provision is effective for qualifying assets

purchased after the date of enactment.

SENATE AMENDMENT

No provision.

CONFERENCE AGREEMENT

The conference agreement follows H.R. 5542.

3. Increased exclusion of gain from the sale of qualifying empowerment zone stock (sec. 117 of the bill and sec. 1202 of the Code)

PRESENT LAW

Under present law, an individual, subject to limitations, may

exclude 50 percent of the gain 16 from the sale of qualifying small

business stock held more than five years (sec. 1202).

HOUSE BILL

No provision. However, H.R. 5542 increases the exclusion for

small business stock to 60 percent for stock purchased after the

date of enactment in a corporation that is a qualified business entity and that is held for more than five years. A ‘‘qualified business

entity’’ means a corporation that satisfies the requirements of a

qualifying business under the empowerment zone rules during substantially all the taxpayer’s holding period.

Effective date.—The provision is effective for qualified stock

purchased after the date of enactment.

SENATE AMENDMENT

No provision.

987

17Thus, a credit would be available on the date on which the investment is made and for

each of the six anniversary dates thereafter. 18 A specialized small business investment company and a community development financial

institution are treated as satisfying the requirements for a CDE.

CONFERENCE AGREEMENT

The conference agreement follows H.R. 5542.

C. NEW MARKETS TAX CREDIT (SEC. 121 OF THE BILL AND NEW SEC.

45D OF THE CODE)

PRESENT LAW

Tax incentives are available to taxpayers making investments

and loans in low-income communities. For example, tax incentives

are available to taxpayers that invest in specialized small business

investment companies licensed by the SBA to make loans to, or equity investments in, small businesses owned by persons who are socially or economically disadvantaged.

HOUSE BILL

No provision. However, H.R. 5542 includes a provision that

creates a new tax credit for qualified equity investments made to

acquire stock in a selected community development entity (‘‘CDE’’).

The maximum annual amount of qualifying equity investments is

capped as follows:

Calendar year Maximum qualifying equity investment

2001 ................................................................................................................................................... $1.0 billion

2002–2003 ......................................................................................................................................... $1.5 billion per year

2004–2005 ......................................................................................................................................... $2.0 billion per year

2006–2007 ......................................................................................................................................... $3.5 billion per year

The amount of the new tax credit to the investor (either the

original purchaser or a subsequent holder) is (1) a five-percent

credit for the year in which the equity interest is purchased from

the CDE and the first two anniversary dates after the interest is

purchased from the CDE, and (2) a six percent credit on each anniversary date thereafter for the following four years.17 The taxpayer’s basis in the investment is reduced by the amount of the

credit (other than for purposes of calculating the capital gain exclusion under sections 1202, 1400B, and 1400F). The credit is subject

to the general business credit rules.

A CDE is any domestic corporation or partnership (1) whose

primary mission is serving or providing investment capital for lowincome communities or low-income persons, (2) that maintains accountability to residents of low-income communities by their representation on any governing board or on any advisory board of the

CDE, and (3) is certified by the Treasury Department as an eligible

CDE.18 No later than 120 days after enactment, the Treasury Department shall issue regulations that specify objective criteria to be

used by the Treasury to allocate the credits among eligible CDEs.

In allocating the credits, the Treasury Department will give priority to entities with records of having successfully provided capital

or technical assistance to disadvantaged businesses or commuVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00991 Fmt 6601 Sfmt 6601 E:\HR\OC\HR1033.008 pfrm03 PsN: HR1033
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19 A record of having successfully provided capital or technical assistance to disadvantaged

businesses or communities could be demonstrated by the past actions of the CDE itself or an

affiliate (e.g., in the case where a new CDE is established by a nonprofit organization with a

history of providing assistance to disadvantaged communities). 20Thus, a qualified low-income community investment may include an investment in a

qualifying business in which the CDE (or a related party) holds a significant interest. However,

as previously mentioned, in allocating the credits among eligible CDEs, the Treasury Department will give priority to CDEs that intend to invest substantially all of the proceeds from their

investors in businesses in which persons unrelated to the CDE hold the majority of the equity

interest. Persons are related to each other if they are described in sections 267(b) or 707(b)(1). 21 If at least 85 percent of the aggregate gross assets of the CDE are invested (directly or

indirectly) in equity interests in, or loans to, qualified active businesses located in low-income

communities, then there would be no need to trace the use of the proceeds from the particular

stock (or other equity ownership) issuance with respect to which the credit is claimed. 22 It is intended that the continuous boundary that delineates the portion of the census tract

as a ‘‘low-income community’’ should be a pre-existing boundary (such as an established neighborhood, political, or geographic boundary).

nities,19 as well as to entities that intend to invest substantially all

of the proceeds from their investors in businesses in which persons

unrelated to the CDE hold the majority of the equity interest.

If a CDE fails to sell equity interests to investors up to the

amount authorized within five years of the authorization, then the

remaining authorization is canceled. The Treasury Department can

authorize another CDE to issue equity interests for the unused portion. No authorization can be made after 2014.

A ‘‘qualified equity investment’’ is defined as stock or a similar

equity interest acquired directly from a CDE in exchange for cash.

Substantially all of the investment proceeds must be used by the

CDE to make ‘‘qualified low-income community investments.’’

Qualified low-income community investments include: (1) capital or

equity investments in, or loans to, qualified active businesses located in low-income communities,20 (2) certain financial counseling

and other services specified in regulations to businesses and residents in low-income communities, (3) the purchase from another

CDE of any loan made by such entity that is a qualified low income

community investment, or (4) an equity investment in, or loans to,

another CDE.21 Treasury Department regulations will provide

guidance with respect to the ‘‘substantially all’’ standard.

The stock or equity interest cannot be redeemed (or otherwise

cashed out) by the CDE for at least seven years. If an entity fails

to be a CDE during the seven-year period following the taxpayer’s

investment, or if the equity interest is redeemed by the issuing

CDE during that seven-year period, then any credits claimed with

respect to the equity interest are recaptured (with interest) and no

further credits are allowed.

A ‘‘low-income community’’ is defined as census tracts with either (1) poverty rates of at least 20 percent (based on the most recent census data), or (2) median family income which does not exceed 80 percent of the greater of metropolitan area income or statewide median family income (for a non-metropolitan census tract, 80

percent of non-metropolitan statewide median family income). In

addition, the Secretary may designate any area within any census

tract as a ‘‘low income community’’ provided that (1) the boundary

of the area is continuous,22 (2) the area (if it were a census tract)

would satisfy the poverty rate or median income requirements

within the targeted area, and (3) an inadequate access to investment capital exists in the area.

989

A ‘‘qualified active business’’ is defined as a business which

satisfies the following requirements: (1) at least 50 percent of the

total gross income of the business is derived from the active conduct of trade or business activities in low-income communities; (2)

a substantial portion of the use of the tangible property of such

business is used in low-income communities; (3) a substantial portion of the services performed for such business by its employees

is performed in low-income communities; and (4) less than 5 percent of the average aggregate of unadjusted bases of the property

of such business is attributable to certain financial property or to

collectibles (other than collectibles held for sale to customers).

There is no requirement that employees of the business be residents of the low-income community.

Rental of improved commercial real estate located in a low-income community is a qualified active business, regardless of the

characteristics of the commercial tenants of the property. The purchase and holding of unimproved real estate is not a qualified active business. In addition, a qualified active business does not include (a) any business consisting predominantly of the development

or holding of intangibles for sale or license; or (b) operation of any

facility described in sec. 144(c)(6)(B). A qualified active business

can include an organization that is organized on a non-profit basis.

The GAO will audit and report to Congress by January 31,

2004, and again in 2007 and 2010, on the new markets tax credit

program, including on all qualified community development entities

that receive an allocation under the new markets tax credit program.

Effective date.—The provision is effective for qualified investments made after December 31, 2000.

SENATE AMENDMENT

No provision. However, S. 3152 includes a provision that creates a new markets tax credit that is similar to the provision in

H.R. 5542. However, under S. 3152, the maximum annual amount

of qualifying equity investments is capped as follows:

Calendar year Maximum qualifying equity in- vestment

2002 ................................................................................................................................................... $1.0 billion

2003–2006 ......................................................................................................................................... $1.5 billion per year

Under S. 3152, if a CDE fails to sell equity interests to investors up to the amount authorized within five years of the authorization, then the remaining authorization is canceled. The Treasury

Department can authorize another CDE to issue equity interests

for the unused portion. No authorization can be made after 2013.

Effective date.—The provision is effective for qualified investments made after December 31, 2001.

CONFERENCE AGREEMENT

The conference agreement follows H.R. 5542. The conference

agreement also clarifies that a low-income community can include

990

23For this purpose, a U.S. possession means Puerto Rico, the Virgin Islands, Guam, the

Northern Mariana Islands, and American Samoa.

a possession of the United States 23 (and thus investments in a

U.S. possession may qualify for the new markets tax credit).

D. INCREASE THE LOW-INCOME HOUSING TAX CREDIT CAP AND

MAKE OTHER MODIFICATIONS (SECS. 131–137 OF THE BILL AND

SEC. 42 OF THE CODE)

PRESENT LAW

In general

The low-income housing tax credit may be claimed over a 10-

year period for the cost of rental housing occupied by tenants having incomes below specified levels. The credit percentage for newly

constructed or substantially rehabilitated housing that is not Federally subsidized is adjusted monthly by the Internal Revenue

Service so that the 10 annual installments have a present value of

70 percent of the total qualified expenditures. The credit percentage for new substantially rehabilitated housing that is Federally

subsidized and for existing housing that is substantially rehabilitated is calculated to have a present value of 30 percent qualified

expenditures.

Credit cap

The aggregate credit authority provided annually to each State

is $1.25 per resident, except in the case of projects that also receive

financing with proceeds of tax-exempt bonds issued subject to the

private activity bond volume limit and certain carry-over amounts.

Expenditure test

Generally, the building must be placed in service in the year

in which it receives an allocation to qualify for the credit. An exception is provided in the case where the taxpayer has expended an

amount equal to 10-percent or more of the taxpayer’s reasonably

expected basis in the building by the end of the calendar year in

which the allocation is received and certain other requirements are

met.

Basis of building eligible for the credit

Buildings receiving assistance under the HOME investment

partnerships act (‘‘HOME’’) are not eligible for the enhanced credit

for buildings located in high cost areas (i.e., qualified census tracts

and difficult development areas). Under the enhanced credit, the

70-percent and 30-percent credit are increased to a 91-percent and

39-percent credit, respectfully.

Eligible basis is generally limited to the portion of the building

used by qualified low-income tenants for residential living and

some common areas.

State allocation plans

Each State must develop a plan for allocating credits and such

plan must include certain allocation criteria including: (1) project

location; (2) housing needs characteristics; (3) project characterisVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00994 Fmt 6601 Sfmt 6601 E:\HR\OC\HR1033.008 pfrm03 PsN: HR1033
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24For example, constitutional home rule cities in Illinois are guaranteed their proportionate share of the $1.25 amount, based on their population relative to that of the State as a whole. 25 A State’s population, for these purposes, is the most recent estimate of the State’s population released by the Bureau of the Census before the beginning of the year to which the limitation applies. Also, for these purposes, the District of Columbia and the U.S. possessions (i.e.,

Puerto Rico, the Virgin Islands, Guam, the Northern Marianas and American Samoa) are treated as States. 26The unused State housing credit ceiling is the amount (if positive) of the previous year’s

annual credit limitation plus credit returns less the credit actually allocated in that year. 27 Credit returns are the sum of any amounts allocated to projects within a State which fail

to become a qualified low-income housing project within the allowable time period plus any

amounts allocated to a project within a State under an allocation which is canceled by mutual

consent of the housing credit agency and the allocation recipient.

tics; (4) sponsor characteristics; (5) participation of local tax-exempts; (6) tenant populations with special needs; and (7) public

housing waiting lists. The State allocation plan must also give preference to housing projects: (1) that serve the lowest income tenants; and (2) that are obligated to serve qualified tenants for the

longest periods.

Credit administration

There are no explicit requirements that housing credit agencies

perform a comprehensive market study of the housing needs of the

low-income individuals in the area to be served by the project, nor

that such agency conduct site visits to monitor for compliance with

habitability standards.

Stacking rule

Authority to allocate credits remains at the State (as opposed

to local) government level unless State law provides otherwise.24

Generally, credits may be allocated only from volume authority

arising during the calendar year in which the building is placed in

service, except in the case of: (1) credits claimed on additions to

qualified basis; (2) credits allocated in a later year pursuant to an

earlier binding commitment made no later than the year in which

the building is placed in service; and (3) carryover allocations.

Each State annually receives low-income housing credit authority equal to $1.25 per State resident for allocation to qualified

low-income projects.25 In addition to this $1.25 per resident

amount, each State’s ‘‘housing credit ceiling’’ includes the following

amounts: (1) the unused State housing credit ceiling (if any) of

such State for the preceding calendar year; 26 (2) the amount of the

State housing credit ceiling (if any) returned in the calendar

year; 27 and (3) the amount of the national pool (if any) allocated

to such State by the Treasury Department.

The national pool consists of States’ unused housing credit

carryovers. For each State, the unused housing credit carryover for

a calendar year consists of the excess (if any) of the unused State

housing credit ceiling for such year over the excess (if any) of the

aggregate housing credit dollar amount allocated for such year over

the sum of $1.25 per resident and the credit returns for such year.

The amounts in the national pool are allocated only to a State

which allocated its entire housing credit ceiling for the preceding

calendar year, and requested a share in the national pool not later

than May 1 of the calendar year. The national pool allocation to

qualified States is made on a pro rata basis equivalent to the fracVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 00995 Fmt 6601 Sfmt 6601 E:\HR\OC\HR1033.008 pfrm03 PsN: HR1033
992

tion that a State’s population enjoys relative to the total population

of all qualified States for that year.

The present-law stacking rule provides that a State is treated as using its annual allocation of credit authority ($1.25 per State

resident) and any returns during the calendar year followed by any

unused credits carried forward from the preceding year’s credit

ceiling and finally any applicable allocations from the National

pool.

HOUSE BILL

No provision. However, H.R. 5542 makes the following changes

in the low-income housing credit.

Credit cap

The bill increases the per-capita low-income housing credit cap from $1.25 per capita to $1.50 per capita in calendar year 2001 and

to $1.75 per capita in calendar year 2002. Beginning in calendar

year 2003, the per-capita portion of the credit cap will be adjusted

annually for inflation. For small States, a minimum annual cap of

$2 million is provided for calendar years 2001 and 2002. Beginning

in calendar year 2003, the small State minimum is adjusted for inflation.

Expenditure test

The bill allows a building which receives an allocation in the

second half of a calendar to qualify under the 10-percent test if the

taxpayer expends an amount equal to 10-percent or more of the

taxpayer’s reasonably expected basis in the building within six

months of receiving the allocation regardless of whether the 10-percent test is met by the end of the calendar year.

Basis of building eligible for the credit

The bill makes three changes to the basis rules of the credit.

First, the definition of qualified census tracts for purposes of the

enhanced credit is expanded to include any census tracts with a

poverty rate of 25 percent or more. Second, the bill extends the

credit to a portion of the building used as a community service facility not in excess of 10 percent of the total eligible basis in the

building. A community service facility is defined as any facility designed to serve primarily individuals whose income is 60 percent

or less of area median income. Third, the bill provides that assistance received under the Native American Housing Assistance and

Self-Determination Act of 1996 is not taken into account in determining whether a building is Federally subsidized for purposes of

the credit. This allows such buildings to qualify for something other

than the 30-percent credit generally applicable to Federally subsidized buildings.

State allocation plans

The bill strikes the plan criteria relating to participation of

local tax-exempts, replacing it with two other criteria: tenant populations of individuals with children and projects intended for eventual tenant ownership. It also provides that the present-law criteria relating to sponsor characteristics include whether the project

993

involves the use of existing housing as part of a community revitalization plan. The bill adds a third category of housing projects to

the preferential list, for projects located in qualified census tracts

which contribute to a concerted community revitalization plan.

Credit administration

The bill requires a comprehensive market study of the housing

needs of the low-income individuals in the area to be served by the

project and a written explanation available to the general public for

any allocation not made in accordance with the established priorities and selection criteria of the housing credit agency. They also

require site inspections by the housing credit agency to monitor

compliance with habitability standards applicable to the project.

Stacking rule

The bill modifies the stacking rule so that each State is treated

as using its allocation of the unused State housing credit ceiling (if

any) from the preceding calendar before the current year’s allocation of credit (including any credits returned to the State) and then

finally any National pool allocations.

Effective date

The provision is generally effective for calendar years beginning after December 31, 2000, and buildings placed-in-service after

such date in the case of projects that also receive financing with

proceeds of tax-exempt bonds subject to the private activity bond

volume limit which are issued after such date.

SENATE AMENDMENT

Credit cap

No provision. However, S. 3152 increases the annual State

credit caps from $1.25 to $1.75 per resident beginning in 2001.

Also, beginning in 2001 the per capita cap for each State is modified so that small population States are given a minimum of $2

million of annual credit cap. The $1.75 per capita cap and the $2

million amount are indexed for inflation beginning in calendar

2002.

Expenditure test

No provision.

Basis of building eligible for the credit

The provision in S. 3152 relating to the treatment of buildings

receiving assistance under the Native American Housing Assistance and Self-Determination Act of 1996 is the same as one of the

provisions in H.R. 5542.

State allocation plans

No provision.

Credit administration

No provision.

994

Stacking rule

Same as H.R. 5542.

Effective date

The provisions are effective for calendar years beginning after

December 31, 2000 and buildings placed-in-service after such date

in the case of projects that also receive financing with proceeds of

tax-exempt bonds which are issued after such date subject to the

private activity bond volume limit.

CONFERENCE AGREEMENT

The conference agreement follows H.R. 5542.

E. ACCELERATE SCHEDULED INCREASE IN STATE VOLUME LIMITS ON

TAX-EXEMPT PRIVATE ACTIVITY BONDS (SEC. 151 OF THE BILL AND

SEC. 146 OF THE CODE)

PRESENT LAW

Interest on bonds issued by States and local governments is excluded from income if the proceeds of the bonds are used to finance

activities conducted and paid for by the governmental units (sec.

103). Interest on bonds issued by these governmental units to finance activities carried out and paid for by private persons (‘‘private activity bonds’’) is taxable unless the activities are specified in

the Internal Revenue Code. Private activity bonds on which interest may be tax-exempt include bonds for privately operated transportation facilities (airports, docks and wharves, mass transit, and

high speed rail facilities), privately owned and/or provided municipal services (water, sewer, solid waste disposal, and certain electric and heating facilities), economic development (small manufacturing facilities and redevelopment in economically depressed

areas), and certain social programs (low-income rental housing,

qualified mortgage bonds, student loan bonds, and exempt activities of charitable organizations described in sec. 501(c)(3)).

The volume of tax-exempt private activity bonds that States

and local governments may issue for most of these purposes in each

calendar year is limited by State-wide volume limits. The current

annual volume limits are $50 per resident of the State or $150 million if greater. The volume limits do not apply to private activity

bonds to finance airports, docks and wharves, certain governmentally owned, but privately operated solid waste disposal facilities, certain high speed rail facilities, and to certain types of private activity tax-exempt bonds that are subject to other limits on

their volume (qualified veterans’ mortgage bonds and certain ‘‘new’’

empowerment zone and enterprise community bonds).

The current annual volume limits that apply to private activity

tax-exempt bonds increase to $75 per resident of each State or

$225 million, if greater, beginning in calendar year 2007. The increase is, ratably phased in, beginning with $55 per capita or $165

million, if greater, in calendar year 2003.

995

HOUSE BILL

No provision. However, H.R. 5542 increases the State volume

limits from the greater of $50 per resident or $150 million to the

greater of $62.50 per resident or $187.5 million in calendar year

2001. The volume limit will increase further, to the greater of $75

per resident or $225 million in calendar year 2002. Beginning in

calendar year 2003, the volume limit will be adjusted annually for

inflation.

Effective date.—The provision is effective beginning in calendar

year 2001.

SENATE AMENDMENT

No provision. However, S. 3152 increases the present-law annual State private activity bond volume limits to $75 per resident

of each State or $225 million (if greater) beginning in calendar year

2001. In addition, the $75 per resident and the $225 million State

limit will be indexed for inflation beginning in calendar year 2002.

Effective date.—The provisions are effective beginning in calendar year 2001.

CONFERENCE AGREEMENT

The conference agreement follows H.R. 5542.

F. EXTENSION AND MODIFICATION TO EXPENSING OF ENVIRONMENTAL REMEDIATION COSTS (SEC. 152 OF THE BILL AND SEC. 198

OF THE CODE)

PRESENT LAW

Taxpayers can elect to treat certain environmental remediation

expenditures that would otherwise be chargeable to capital account

as deductible in the year paid or incurred (sec. 198). The deduction

applies for both regular and alternative minimum tax purposes.

The expenditure must be incurred in connection with the abatement or control of hazardous substances at a qualified contaminated site.

A ‘‘qualified contaminated site’’ generally is any property that:

(1) is held for use in a trade or business, for the production of income, or as inventory; (2) is certified by the appropriate State environmental agency to be located within a targeted area; and (3) contains (or potentially contains) a hazardous substance (so-called

‘‘brownfields’’). Targeted areas are defined as: (1) empowerment

zones and enterprise communities as designated under present law;

(2) sites announced before February 1997, as being subject to one

of the 76 Environmental Protection Agency (‘‘EPA’’) Brownfields Pilots; (3) any population census tract with a poverty rate of 20 percent or more; and (4) certain industrial and commercial areas that

are adjacent to tracts described in (3) above. However, sites that

are identified on the national priorities list under the Comprehensive Environmental Response, Compensation, and Liability Act of

1980 cannot qualify as targeted areas.

Eligible expenditures are those paid or incurred before January

1, 2002.

996

HOUSE BILL

No provision. However, H.R. 5542 extends the expiration date

for eligible expenditures to include those paid or incurred before

January 1, 2004.

In addition, the bill eliminates the targeted area requirement,

thereby, expanding eligible sites to include any site containing (or

potentially containing) a hazardous substance that is certified by

the appropriate State environmental agency. However, expenditures undertaken at sites that are identified on the national priorities list under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 would continue to not qualify

as eligible expenditures.

By extending and expanding section 198, the bill is not intended to displace the general tax law principle regarding expensing versus capitalization of expenditures which continues to apply

to environmental remediation efforts not specifically covered under

section 198.

Effective date.—The provision to extend the expiration date if

effective upon the date of enactment. The provision to expand the

class of eligible sites is effective for expenditures paid or incurred

after the date of enactment.

SENATE AMENDMENT

No provision. However, S. 3152 includes a provision identical

to that of the House bill provision.

CONFERENCE AGREEMENT

The conference agreement follows H.R. 5542.

G. EXPANSION OF DISTRICT OF COLUMBIA HOMEBUYER TAX CREDIT

(SEC. 153 OF THE BILL AND SEC. 1400C OF THE CODE)

PRESENT LAW

First-time homebuyers of a principal residence in the District

of Columbia are eligible for a nonrefundable tax credit of up to

$5,000 of the amount of the purchase price. The $5,000 maximum

credit applies both to individuals and married couples. Married individuals filing separately can claim a maximum credit of $2,500

each. The credit phases out for individual taxpayers with adjusted

gross income between $70,000 and $90,000 ($110,000–$130,000 for

joint filers). For purposes of eligibility, ‘‘first-time homebuyer’’

means any individual if such individual did not have a present

ownership interest in a principal residence in the District of Columbia in the one year period ending on the date of the purchase

of the residence to which the credit applies. The credit is scheduled

to expire for residences purchased after December 31, 2001.

HOUSE BILL

No provision. However, H.R. 5542 extends the first-time homebuyer credit for two years (through December 31, 2003).

Effective date.—The provision is effective on the date of enactment.

997

28Section 1400A(a).

SENATE AMENDMENT

No provision. However, S. 3152 includes a provision that extends the first-time homebuyer credit for two years, through December 31, 2003. The provision also extends the phase-out range

for married individuals filing a joint return so that it is twice that

of individuals. Thus, under the provision, the District of Columbia

homebuyer credit is phased out for joint filers with adjusted gross

income between $140,000 and $180,000.

Effective date.—The provision is effective for taxable years beginning after December 31, 2000.

CONFERENCE AGREEMENT

The conference agreement follows H.R. 5542.

H. EXTENSION OF D.C. ENTERPRISE ZONE (SEC. 154 OF THE BILL

AND SECS. 1400, 1400A AND 1400B OF THE CODE)

PRESENT LAW

The Taxpayer Relief Act of 1997 designated certain economically depressed census tracts within the District of Columbia as the

District of Columbia Enterprise Zone (the ‘‘D.C. Zone’’), within

which businesses and individual residents are eligible for special

tax incentives. The D.C. Zone designation remains in effect for the

period from January 1, 1998, through December 31, 2002. In addition to the tax incentives available with respect to a Round I empowerment zone (including a 20-percent wage credit), the D.C. Zone

also has a zero-percent capital gains rate that applies to gain from

the sale of certain qualified D.C. Zones assets acquired after December 31, 1997 and held for more than five years.

With respect to the tax-exempt financing incentives, the D.C.

Zone generally is treated like a Round I empowerment zone; therefore, the issuance of such bonds is subject to the District of Columbia’s annual private activity bond volume limitation. However, the

aggregate face amount of all outstanding qualified enterprise zone

facility bonds per qualified D.C. Zone business may not exceed $15

million (rather than $3 million, as is the case for Round I empowerment zones).28

HOUSE BILL

No provision.

SENATE AMENDMENT

No provision. However, S. 3152 includes a provision that extends the D.C. Zone designation through December 31, 2006.

CONFERENCE AGREEMENT

The conference agreement follows S. 3152, except that the D.C.

Zone designation is extended for one year (through December 31,

2003).

998

I. EXTENSION AND MODIFICATION OF ENHANCED DEDUCTION FOR

CORPORATE DONATIONS OF COMPUTER TECHNOLOGY (SEC. 155 OF

THE BILL AND SEC. 170(e)(6) OF THE CODE)

PRESENT LAW

The maximum charitable contribution deduction that may be

claimed by a corporation for any one taxable year is limited to 10

percent of the corporation’s taxable income for that year (disregarding charitable contributions and with certain other modifications) (sec. 170(b)(2)). Corporations also are subject to certain limitations based on the type of property contributed. In the case of a

charitable contribution of short-term gain property, inventory, or

other ordinary income property, the amount of the deduction generally is limited to the taxpayer’s basis (generally, cost) in the property. However, special rules in the Code provide an augmented deduction for certain corporate contributions. Under these special

rules, the amount of the augmented deduction is equal to the lesser

of (1) the basis of the donated property plus one-half of the amount

of ordinary income that would have been realized if the property

had been sold, or (2) twice the basis of the donated property.

Section 170(e)(6) allows corporate taxpayers an augmented deduction for qualified contributions of computer technology and

equipment (i.e., computer software, computer or peripheral equipment, and fiber optic cable related to computer use) to be used

within the United States for educational purposes in grades K–12.

Eligible donees are: (1) any educational organization that normally

maintains a regular faculty and curriculum and has a regularly enrolled body of pupils in attendance at the place where its educational activities are regularly carried on; and (2) tax-exempt

charitable organizations that are organized primarily for purposes

of supporting elementary and secondary education. A private foundation also is an eligible donee, provided that, within 30 days after

receipt of the contribution, the private foundation contributes the

property to an eligible donee described above.

Qualified contributions are limited to gifts made no later than

two years after the date the taxpayer acquired or substantially

completed the construction of the donated property. In addition, the

original use of the donated property must commence with the

donor or the donee. Accordingly, qualified contributions generally

are limited to property that is no more than two years old. Such

donated property could be computer technology or equipment that

is inventory or depreciable trade or business property in the hands

of the donor.

Donee organizations are not permitted to transfer the donated

property for money or services (e.g., a donee organization cannot

sell the computers). However, a donee organization may transfer

the donated property in furtherance of its exempt purposes and be

reimbursed for shipping, installation, and transfer costs. For example, if a corporation contributes computers to a charity that subsequently distributes the computers to several elementary schools in

a given area, the charity could be reimbursed by the elementary

schools for shipping, transfer, and installation costs.

999

The special treatment applies only to donations made by C corporations. S corporations, personal holding companies, and service

organizations are not eligible donors.

The provision is scheduled to expire for contributions made in

taxable years beginning after December 31, 2000.

HOUSE BILL

No provision. However, H.R. 5542 includes a provision that extends the current enhanced deduction for donations of computer

technology and equipment through December 31, 2003, and expands the enhanced deduction to include donations to public libraries. H.R. 5542 provides that qualified contributions include gifts

made no later than three years after the date the taxpayer acquired or substantially completed the construction of the donated

property.

Effective date.—The provision is effective for contributions

made after December 31, 2000.

SENATE AMENDMENT

No provision. However, S. 3152 includes a provision that extends the current enhanced deduction for donations of computer

technology and equipment through December 31, 2003. In addition,

S. 3152 expands the enhanced deduction to include donations to

public libraries.

Effective date.—The provision is effective upon the date of enactment.

CONFERENCE AGREEMENT

The conference agreement follows H.R. 5542 with a modification that contributions may be made by a person that has reacquired the property (i.e., if a computer manufacturer reacquires the

computer from the original user and then contributes it). Such reacquired property must be contributed within 3 years of the date

the original construction of the property was substantially completed. The conferees anticipate that for purposes of computing the

enhanced deduction for a reacquirer, the Secretary will provide

guidance in determining the retail value of donated computers (or

other computer technology) in situations in which the number of

actual retail sales of used computers similar to those donated is

small in relation to the number of such computers that are donated.

In addition, the conference agreement provides that the Secretary may prescribe by regulation standards to ensure that the donations meet minimum functionality and suitability standards for

educational purposes.

1000

29 In general, an MSA is a trust or custodial account created exclusively for the benefit of

the account holder and is subject to rules similar to those applicable to individual retirement

arrangements. The trustee of an MSA can be a bank, insurance company, or other person who

demonstrates to the satisfaction of the Secretary that the manner in which such person will administer the trust will be consistent with applicable requirements.

J. TREATMENT OF INDIAN TRIBES AS NON-PROFIT ORGANIZATIONS

AND STATE OR LOCAL GOVERNMENTS FOR PURPOSES OF THE FED- ERAL UNEMPLOYMENT TAX (‘‘FUTA’’) (SEC. 156 OF THE BILL AND

SEC. 3306 OF THE CODE)

PRESENT LAW

Present law imposes a net tax on employers equal to 0.8 per- cent of the first $7,000 paid annually to each employee. The current gross FUTA tax is 6.2 percent, but employers in States meeting certain requirements and having no delinquent loans are eligible for a 5.4 percent credit making the net Federal tax rate 0.8 percent. Both non-profit organizations and State and local governments are not required to pay FUTA taxes. Instead they may elect

to reimburse the unemployment compensation system for unemployment compensation benefits actually paid to their former employees. Generally, Indian tribes are not eligible for the reimbursement treatment allowable to non-profit organizations and State

and local governments.

HOUSE BILL

No provision. However, H.R. 5542 provides that an Indian

tribe (in including any subdivision, subsidiary, or business enterprise chartered and wholly owned by an Indian tribe) is treated

like a non-profit organization or State or local government for

FUTA purposes (i.e., given an election to choose the reimbursement

treatment).

Effective date.—The provision generally is effective with respect to service performed beginning on or after the date of enactment. Under a transition rule, service performed in the employ of

an Indian tribe is not treated as employment for FUTA purposes

if: (1) it is service which is performed before the date of enactment

and with respect to which FUTA tax has not been paid; and (2)

such Indian tribe reimburses a State unemployment fund for unemployment benefits paid for service attributable to such tribe for

such period.

SENATE AMENDMENT

No provision. However, S. 3152 is the same as H.R. 5542.

CONFERENCE AGREEMENT

The conference agreement follows H.R. 5542 and S. 3152.

TITLE II.—MEDICAL SAVINGS ACCOUNTS (‘‘MSAS’’)

(SEC. 201 OF THE BILL AND SEC. 220 OF THE CODE)

PRESENT LAW

Within limits, contributions to a medical savings account

(‘‘MSA’’) 29 are deductible in determining adjusted gross income

1001

30Self-employed individuals include more than 2-percent shareholders of S corporations who

are treated as partners for purposes of fringe benefit rules pursuant to section 1372. Self-employed individuals are eligible for an MSA regardless of the size of the entity for which the individual performs services. 31These dollar amounts are for 2000. These amounts are indexed for inflation in $50 increments.

(‘‘AGI’’) if made by an eligible individual and are excludable from

gross income and wages for employment tax purposes if made by

the employer of an eligible individual. Earnings on amounts in an

MSA are not currently taxable. Distributions from an MSA for

medical expenses are not taxable. Distributions not used for medical expenses are taxable. In addition, distributions not used for

medical expenses are subject to an additional 15-percent tax unless

the distribution is made after age 65, death, or disability.

MSAs are available to self-employed individuals 30 and to employees covered under an employer-sponsored high deductible plan

of a small employer. An employer is a small employer if it employed, on average, no more than 50 employees on business days

during either the preceding or the second preceding year.

In order for an employee of a small employer to be eligible to

make MSA contributions (or to have employer contributions made

on his or her behalf), the employee must be covered under an employer-sponsored high deductible health plan (see the definition

below) and must not be covered under any other health plan (other

than a plan that provides certain permitted coverage).

Similarly, in order to be eligible to make contributions to an

MSA, a self-employed individual must be covered under a high deductible health plan and no other health plan (other than a plan

that provides certain permitted coverage). A self-employed individual is not an eligible individual (by reason of being self-employed) if the high deductible plan under which the individual is

covered is established or maintained by an employer of the individual (or the individual’s spouse).

The maximum annual contribution that can be made to an

MSA for a year is 65 percent of the deductible under the high deductible plan in the case of individual coverage and 75 percent of

the deductible in the case of family coverage.

A high deductible plan is a health plan with an annual deduct- ible of at least $1,550 and no more than $2,350 in the case of individual coverage and at least $3,100 and no more than $4,650 in the

case of family coverage. In addition, the maximum out-of-pocket expenses with respect to allowed costs (including the deductible) must

be no more than $3,100 in the case of individual coverage and no

more than $5,700 in the case of family coverage.31 A plan does not

fail to qualify as a high deductible plan merely because it does not

have a deductible for preventive care as required by State law. A

plan does not qualify as a high deductible health plan if substantially all of the coverage under the plan is for permitted coverage.

In the case of a self-insured plan, the plan must in fact be insurance (e.g., there must be appropriate risk shifting) and not merely

a reimbursement arrangement.

The number of taxpayers benefiting annually from an MSA

contribution is limited to a threshold level (generally 750,000 taxpayers). If it is determined in a year that the threshold level has

been exceeded (called a ‘‘cut-off’’ year) then, in general, for sucVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 01005 Fmt 6601 Sfmt 6601 E:\HR\OC\HR1033.008 pfrm03 PsN: HR1033
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32 permitted coverage does not constitute coverage under a health insurance plan for this

purpose.

ceeding years during the 4-year pilot period 1997–2000, only those

individuals who (1) made an MSA contribution or had an employer

MSA contribution for the year or a preceding year (i.e., are active

MSA participants) or (2) are employed by a participating employer,

is eligible for an MSA contribution. In determining whether the

threshold for any year has been exceeded, MSAs of individuals who

were not covered under a health insurance plan for the six month

period ending on the date on which coverage under a high deductible plan commences would not be taken into account.32 However,

if the threshold level is exceeded in a year, previously uninsured

individuals are subject to the same restriction on contributions in

succeeding years as other individuals. That is, they would not be

eligible for an MSA contribution for a year following a cut-off year

unless they are an active MSA participant (i.e., had an MSA contribution for the year or a preceding year) or are employed by a

participating employer.

The number of MSAs established has not exceeded the threshold level.

After December 31, 2000, no new contributions may be made

to MSAs except by or on behalf of individuals who previously had

MSA contributions and employees who are employed by a participating employer. An employer is a participating employer if (1) the

employer made any MSA contributions for any year to an MSA on

behalf of employees or (2) at least 20 percent of the employees covered under a high deductible plan made MSA contributions of at

least $100 in the year 2000.

Self-employed individuals who made contributions to an MSA

during the period 1997–2000 also may continue to make contributions after 2000.

HOUSE BILL

No provision. However, H.R. 5542 extends the MSA program

through 2002. The same rules that apply to the limit on MSAs for

1999 apply to 2000 and 2001. Thus, for example, the threshold

level in those years is 750,000 taxpayers.

Effective date.—The provision is effective on the date of enactment.

SENATE AMENDMENT

No provision.

CONFERENCE AGREEMENT

The conference report follows H.R. 5542, except that MSAs are

renamed as Archer MSAs. The conference agreement clarifies that,

as under present law, the cap and reporting requirements do not

apply for 2000.

1003

33Sec. 6715(a). 34P.L. 105–206, sec. 3306.

TITLE III.—ADMINISTRATIVE AND TECHNICAL

CORRECTIONS PROVISIONS

Subtitle A.—Administration Provisions

A. EXEMPT CERTAIN REPORTS FROM ELIMINATION UNDER THE FEDERAL REPORTS ELIMINATION AND SUNSET ACT OF 1995 (SEC. 301

OF THE BILL)

PRESENT LAW

Section 303 of the Federal Reports Elimination and Sunset Act

of 1995 eliminates many periodic Federal reporting requirements,

effective May 15, 2000.

HOUSE BILL

No provision. However, H.R. 5542 exempts certain reports from

elimination and sunset pursuant to the Federal Reports Elimination and Sunset Act of 1995.

SENATE AMENDMENT

No provision.

CONFERENCE AGREEMENT

The conference agreement follows H.R. 5542.

B. EXTENSION OF DEADLINES FOR IRS COMPLIANCE WITH CERTAIN

NOTICE REQUIREMENTS (SEC. 302 OF THE BILL AND SECS. 6631

AND 6751(a) OF THE CODE)

PRESENT LAW

The Internal Revenue Service Restructuring and Reform Act of

1998 (‘‘IRS Restructing Act of 1998’’) imposed several notice requirements relating to penalties, interest and installment agreements. Section 6715 of the Code, added by section 3306 of the IRS

Restructing Act of 1998, requires that each notice imposing a penalty include the name of the penalty, the Code section under which

the penalty is imposed, and a computation of the penalty.33 This

requirement applies to notices issued, and penalties assessed, after

December 31, 2000.34

Section 6631 of the Code, added by section 3308 of the IRS Restructuring Act of 1998, requires that every IRS notice sent to an

individual taxpayer that includes an amount of interest required to

be paid by the taxpayer also include a detailed computation of the

interest charged and a citation to the Code section under which

such interest is imposed. The provision is effective for notices

issued after December 31, 2000.

Section 3506 of the IRS Restructuring Act of 1998 requires the

IRS to send every taxpayer in an installment agreement an annual

statement of the initial balance owed, the payments made during

the year, and the remaining balance. The provision became effective on July 1, 2000.

1004

35Secs. 6715(a) and 6631.

HOUSE BILL

No provision. However, H.R. 5542 extend the deadlines for

complying with the penalty, interest, and installment agreement

notice requirements. Specifically, the annual installment agreement notice requirement is extended from July 1, 2000, to September 1, 2001. The deadlines for complying with the notice requirements relating to the computation of penalties and interest 35

are both extended to June 30, 2001. In addition, for penalty notices

issued after June 30, 2001, and before July 1, 2003, the notice requirements will be treated as met if the notice contains a telephone

number at which the taxpayer can request a copy of the taxpayer’s

assessment and payment history with respect to such penalty.

Similarly, for interest notices issued after June 30, 2001, and before July 1, 2003, the notice requirements will be treated as met

if such notice contains a telephone number at which the taxpayer

can request a copy of the taxpayer’s payment history relating to interest amounts included in such notice.

Effective date.—The provision is effective on the date of enactment.

SENATE AMENDMENT

No provision.

CONFERENCE AGREEMENT

The conference agreement follows H.R. 5542.

C. EXTENSION OF AUTHORITY FOR UNDERCOVER OPERATIONS (SEC.

303 OF THE BILL AND SEC. 7608 OF THE CODE)

PRESENT LAW

The Anti-Drug Abuse Act of 1988 exempted IRS undercover operations from the otherwise applicable statutory restrictions controlling the use of Government funds (which generally provide that

all receipts must be deposited in the general fund of the Treasury

and all expenses be paid out of appropriated funds). In general, the

exemption permits the IRS to ‘‘churn’’ the income earned by an undercover operation to pay additional expenses incurred in the undercover operation. The IRS is required to conduct a detailed financial audit of large undercover operations in which the IRS is churning funds and to provide an annual audit report to the Congress

on all such large undercover operations. The exemption originally

expired on December 31, 1989, and was extended by the Comprehensive Crime Control Act of 1990 to December 31, 1991. In the

Taxpayer Bill of Rights II (Public Law 104–168), the authority to

churn funds from undercover operations was extended for five

years, through 2000.

HOUSE BILL

No provision. However, H.R. 5542 extends the authority of the

IRS to ‘‘churn’’ the income earned from undercover operations for

an additional five years, through 2005.

1005

36Sec. 6103(b)(2)(A). 37Sec. 6103(b)(2)(B).

Effective date.—The provision is effective on the date of enactment.

SENATE AMENDMENT

No provision.

CONFERENCE AGREEMENT

The conference agreement follows H.R. 5542.

D. COMPETENT AUTHORITY AND PRE-FILING AGREEMENTS (SEC. 304

OF THE BILL AND SECS. 6103, 6110, AND NEW SEC. 6105 OF THE

CODE)

PRESENT LAW

Section 6103

Section 6103 of the Code sets forth the general rule that returns and return information are confidential. A return is any tax

return, information return, declaration of estimated tax, or claim

for refund filed under the Code on behalf of or with respect to any

person. The term return also includes any amendment or supplement, including supporting schedules or attachments or lists, which

are supplemental to or are part of a filed return. Return information is defined broadly. It includes the following information:

A taxpayer’s identity, the nature, source or amount of income, payments, receipts, deductions, exemptions, credits, assets, liabilities, net worth, tax liability, tax withheld, deficiencies, over assessments, or tax payments;

Whether the taxpayer’s return was, is being, or will be examined or subject to other investigations or processing;

Any other data, received by, recorded by, prepared by, furnished to, or collected by the Secretary with respect to a return

or with respect to the determination of the existence, or possible existence, of liability (or the amount thereof) of any person under this title for any tax, penalty, interest, fine, forfeiture, or other imposition, or offense;36

Any part of any written determination or any background

file document relating to such written determination which is

not open to the public inspection under section 6110,37 and

Any advance pricing agreement entered into by a taxpayer

and the Secretary and any background information related to

the agreement or any application for an advance pricing agreement.

The term ‘‘return information’’ does not include data in a form

that cannot be associated with or otherwise identify, directly or indirectly, a particular taxpayer.

Secrecy of information exchanged under tax treaties

U.S. tax treaties typically contain articles governing the exchange of information. These articles generally provide for the exchange of information between the tax authorities of the two countries when such information is necessary for carrying out proviVerDate 11-MAY-2000 23:58 Dec 20, 2000 Jkt 067191 PO 00000 Frm 01009 Fmt 6601 Sfmt 6601 E:\HR\OC\HR1033.008 pfrm03 PsN: HR1033
1006

38The U.S. competent authority is the Secretary of the Treasury or his delegate. The U.S.

competent authority function has been delegated to the Commissioner of Internal Revenue, who

has redelegated the authority to the Director, International. On interpretive issues, the latter

acts with the concurrence of the Associate Chief Counsel (International) of the IRS. 39Sections 274(h)(6)(C) and 927(e)(3) specifically provide the Secretary of the Treasury the

authority to enter into tax information exchange agreements. This eliminates the need for Senate ratification, which is required for a tax treaty. In addition, all tax information exchange

agreements are required to include specific non-disclosure provisions which provide that ‘‘information received by either country will be disclosed only to persons or authorities (including

courts and administrative bodies) involved in the administration or oversight of, or in the determination of appeals in respect of, taxes of the United States, or the beneficiary country and will

be used by such persons or authorities only for such purposes.’’ Sec. 274(h)(6)C)(i). 40The U.S. Senate ratified the Multilateral Mutual Assistance Convention, subject to certain reservations, in September 1990. The Multilateral Mutual Assistance Convention entered

into force on April 1, 1995, and has been signed by the following countries: Denmark, Finland,

Iceland, the Netherlands, Norway, Sweden, and the United States.

sions of the treaty or of the countries’ domestic tax laws. Individuals referred to as ‘‘competent authorities’’ are designated by each

country to make written requests for information and to receive information.38

The exchange of information articles typically cover information relating to taxes to which the treaty applies, but can also

apply to other taxes (e.g., excise taxes) not covered by the treaty.

Many of the treaties permit the exchange of information even if the

taxpayer involved is not a resident of one of the treaty countries.

The exchange of information articles may be similar to, or represent a variation on, Article 26 of the 1996 U.S. model income tax

treaty.

Information that is received under the exchange of information

articles is subject to secrecy clauses contained in the treaties. In

this regard, the country requesting information under the treaties

typically is required to treat any information received as secret in

the same manner as information obtained under its domestic laws.

In general, disclosure is not permitted other than to persons or authorities involved in the administration, assessment, collection or

enforcement of taxes to which the treaty applies. For example, disclosure generally can be made to legislative bodies, such as the taxwriting committees of the Congress, and the General Accounting

Office for purposes of overseeing the administration of U.S. tax

laws.

In addition to the exchange of information articles in U.S. tax

treaties, exchange of information provisions are contained in tax information exchange agreements entered into between the United

States and another country.39 In addition, information may be exchanged pursuant to the Convention on Mutual Administrative Assistance in Tax Matters developed by the Council of Europe and

the Organization for Economic Cooperation and Development (the

‘‘Multilateral Mutual Assistance Convention’’), which limits the use

of exchanged information and permits disclosure of such information only with the prior authorization of the competent authority

of the country providing the information.40 The United States has

also entered into a number of implementation and coordination

agreements with possessions that provide for the exchange of tax

information. Moreover, the United States has entered into various

mutual legal assistance treaties with other countries, some of

which can be used to obtain tax information in criminal investigations.

1007

41For rulings, determination letters and technical advice memorandum, section 6110(c) provides the following exemptions from disclosure:

(1) The names, addresses, and other identifying details of the person to whom the written

determination pertains and of any other person, other than a person with respect to whom a

notation is made under subsection (d)(1) (relating to third party contacts), identified in the written determination or any background file document;

(2) Information specifically authorized under criteria established by an Executive order to

be kept secret in the interest of national defense or foreign policy, and which is in fact properly

classified pursuant to such Executive order;

(3) Information specifically exempted from disclosure by any statute (other than [Title 26]

which is applicable to the Internal Revenue Service;

(4) Trade secrets and commercial or financial information obtained from a person and privileges or confidential;

(5) Information the disclosure of which would constitute a clearly unwarranted invasion of

personal privacy; 42 H.R. Rep. 94–658, at 315 (1976).

Both the confidentiality provisions of section 6103, as well as

treaty secrecy provisions can cover return information.

Section 6110 and section 7121

Section 6110 of the Code provides for disclosure of written determinations. With certain exceptions, section 6110 makes the text

of any written determination the Internal Revenue Service (‘‘IRS’’)

issues available for pubic inspection. A written determination is

any ruling, determination letter, technical advice memorandum, or

Chief Counsel advice. The IRS is required to redact certain material before making these documents publicly available.41 Among

the information to be redacted is information specifically exempted

from disclosure by any statute (other than Title 26) that is applicable to the IRS. Once the IRS makes the written determination publicly available, the background file documents associated with such

written determination are available for public inspection upon written request. Section 6110 defines ‘‘background file documents’’ as

any written material submitted by the taxpayer or other requester

in support of the request. Background file documents also include

any communications between the IRS and persons outside the IRS

concerning such written determination that occur before the IRS

issues the determination.

Section 6110 was added to the Code in 1976. The legislative

history provided that a written determination would not be considered a ruling, technical advice memorandum, or determination letter, unless the document satisfies three criteria:

(1) The document recites the relevant facts;

(2) The document explains the applicable provisions of law;

and

(3) The document shows the application of law to the

facts.42

The legislative history further provided that section 6110 ‘‘does

not require public disclosure of a closing agreement entered into

between the IRS and a taxpayer which finally determines the taxpayer’s tax liability with respect to a taxable year. . . . Your committee understands that a closing agreement is generally the result

of a negotiated settlement and, as such, does not necessarily represent the IRS view of the law. Your committee intends, however,

that the closing agreement exception is not to be used as a means

of avoiding public disclosure of determinations which, under

1008

43 Id. at 316. 44 5 U.S.C. sec. 552(b)(3). 45The initial FOIA request of March 14, 2000, covered all competent authority agreements

executed for the United States from January 1, 1990, to date. In response to a request from

the Department of Treasury, by letter dated April 17, 2000, the FOIA request was narrowed

to cover competent authority agreements executed between 1997 and 1999. The right to pursue

the 1990 through 1996 agreements, however, was reserved. 46Tax Analysts v. IRS, 117 F.3d 607 (D.C. Cir. 1997).

present practice, would be issued in a form which would be open

to public inspection [under the bill].’’ 43

Closing agreements are entered into under the authority of

section 7121. Closing agreements finally and conclusively settle a

tax issue between the IRS and a taxpayer. Closing agreements

may: (1) determine a taxpayer’s entire tax liability for a previous

tax period; or (2) fix the tax treatment of one or more specific items

affecting tax liability for any tax period. Thus, closing agreements

may settle the treatment of a specific item for periods ending after

the execution of the agreement. A single closing agreement may

cover both the determination of a taxpayer’s entire tax liability for

a previous tax period and fix the tax treatment of specific items for

any tax period.

Freedom of Information Act

The Freedom of Information Act (‘‘FOIA’’), enacted in 1966, established a statutory right to access government information. While

the purpose of section 6103 is to restrict access to returns and return information, the basic purpose of the FOIA is to ensure that

the public has access to government documents. In general, the

FOIA provides that any person has a right of access to Federal

agency records, except to the extent that such records (or portions

thereof) are protected from disclosure by one of nine exemptions or

by one of three special law enforcement record exclusions. Exemption 3 of the FOIA allows the withholding of information prohibited

from disclosure by another statute if certain requirements are

met.44 The right of access is enforceable in court.

Pending FOIA requests and litigation involving IRS records

Records covered by treaty secrecy clauses

A publisher of tax related material and commentary has made

a FOIA request for the disclosure of competent authority agreements. The request has been pending since March 14, 2000.45 The

IRS has not denied the request, nor has it produced any documents

responsive to the request. At this time, no suit has been filed to

compel disclosure of these documents, although such a suit may be

brought in the future.

In connection with a separate request, the IRS was sued under

the FOIA to compel disclosure of Field Service Advice memoranda

(‘‘FSAs’’).46 FSAs are prepared by attorneys in the IRS National Office of the Office of Chief Counsel. They are prepared in response

to requests from IRS field personnel for legal guidance, usually

with respect to issues relating to a particular taxpayer. FSAs usually contain a statement of issues, facts, legal analysis and conclusions. The primary purpose of FSAs is to ensure that IRS field personnel apply the law correctly and uniformly. The D.C. Circuit determined that FSAs are subject to disclosure. However, the court

1009

47Tax Analysts v. IRS, No. 94–CV–923 (GK) (D.D.C.).

remanded the case to district court to address assertions of privilege, including those based on treaty secrecy. A decision on this

issue by the district court is still pending.47

Pre-filing agreements

On February 11, 2000, the IRS issued Notice 2000–12, in

which the IRS established a pilot program for ‘‘Pre-filing Agreements.’’ Under this program, large businesses may request a review and resolution of specific issues relating to tax returns they

expect to file between September and December of 2000. The purpose of the program is to enable taxpayers and the IRS to resolve

issues that are likely to be disputed in post-filing audits. Examples

of such issues include: (1) asset valuation and the allocation of a

business’s purchase or sale price among the assets acquired or sold;

(2) the identification and documentation of hedging transactions;

and (3) the determination of ‘‘market’’ for taxpayers using the lower

of cost or market method of inventory valuation in situations involving inactive markets. The program is intended to address

issues for which the law is settled.

In Notice 2000–12, the IRS stated that pre-filing agreements

are closing agreements entered into pursuant to section 7121. As

such, the notice provides that the information generated or received by the IRS during the pre-filing agreement process constitutes return information. The notice further provides that pre-filing agreements are not written determinations as defined in section 6110, nor are they subject to disclosure under the FOIA.

Several pre-filing agreements have been completed. A FOTA request for these agreements has not been made.

HOUSE BILL

No provision. However, H.R. 5542 affirms that closing and

similar agreements, and information exchanged and agreements

reached pursuant to a tax treaty, are confidential. Further, the provision clarifies that such protected documents are not to be disclosed under the FOIA or section 6110.

Clarification that return information includes closing agreements

and similar dispute resolution agreements

Protection for closing agreements, pre-filing agreements and

similar agreements not containing an exposition of the

tax law

The bill provides that agreements entered into under section

7121 or similar agreements are confidential return information.

Similar agreements are intended to include negotiated agreements

that (1) are the result of an alternative dispute resolution or dispute avoidance process relating to liability of any person under the

Code for any tax, penalty, interest, fine or forfeiture or other imposition or offense and (2) do not establish, set forth, or resolve the

government’s interpretation of the relevant tax law. This is not

meant to preclude citation, or repetition of, the Code, Treasury regulations, or other published rules.

1010

48The D.C. Circuit recently remanded to the district court for factual development the issue

of whether the closing agreement in that case was submitted in support of an exemption application, and therefore, subject to disclosure under section 6104. Tax Analysts v. IRS, 214 F.3d

179 (D.C. Cir 2000), vacating and remanding 99–2 U.S.T.C. (CCH) 794 (D.D.C. 1999). 49See e.g., Appendix A of Rev. Proc. 2000–38 which is a model ‘‘Closing Agreement on Final

Determination Covering Specific Matters’’ regarding method of accounting for distributor commissions. Rev. Proc. 2000–38, 2000–40 I.R.B. 314–315 (October 2, 2000). That model agreement

does not identify any particular taxpayer but sets forth the substance of the agreement.

It is intended that pre-filing agreements be covered by this

provision. It is the understanding of the conferees that pre-filing

agreements do not explain the applicable provisions of law or otherwise contain any exposition of the tax law or the position of the

IRS. In addition, it is not intended that the closing and similar

agreement exception be used as a means of avoiding public disclosure of determinations that, under present law, would be issued in

a form that would be open to public inspection. Thus, technical advice memoranda, chief counsel advice or other material clearly

available to the public under present law section 6110, would not

be exempt from disclosure by virtue of the fact that such material

is contained in a background file for a closing agreement. For example, if a revenue agent seeks technical advice in connection with

a pre-filing agreement, such technical advice would remain subject

to the requirements of section 6110. Since the pre-filing agreement

program involves only settled issues of law, it is the understanding

of the conferees that documents of this nature generally would not

be generated in the pre-filing agreement process.

The provision is not intended to foreclose the disclosure of taxexempt organization closing agreements to the extent such disclosure is authorized under section 6104.48 Since section 6103 permits

the disclosure of return information as authorized by Title 26, a

disclosure authorized by section 6104 is permissible, notwithstanding the fact that a closing agreement is return information.

Report on pre-filing agreement program

It is intended that the Secretary make publicly available an

annual report relating to the pre-filing agreement program operations for the preceding calendar year. The annual reporting requirement is for five years, or the duration of the program, whichever is shorter. The report is to include (1) the number of pre-filing

agreements completed, (2) the number of applications received, (3)

the number of applications withdrawn, (4) the types of issues which

are resolved by completed agreements, (5) whether the program is

being utilized by taxpayers who were previously subject to audit by

the IRS, (6) the average length of time required to complete an

agreement, (7) the number, if any, and subject of technical advice

and chief counsel advice memoranda issued to address issues arising in connection with any pre-filing agreement, (8) any model

agreements,49 and (9) any other information the Secretary deems

appropriate. The first report, covering the calendar year 2000, is to

be issued no later than March 30, 2001. The information required

for the annual report is subject to the restrictions of section 6103.

Therefore, the Secretary will disclose information only in a form

that cannot be associated with or otherwise identify, directly or indirectly, a particular taxpayer. The Joint Committee on Taxation

periodically may review pre-filing agreements to determine whethVerDate 11-MAY-2000 19:35 Dec 21, 2000 Jkt 067191 PO 00000 Frm 01014 Fmt 6601 Sfmt 6601 E:\HR\OC\HR1033.009 pfrm01 PsN: HR1033
1011

er they contain legal interpretations that should be disclosed to the

public.

Clarification that information protected by treaty is confidential

Protection for agreements and information exchanged pursuant to tax treaty

The provision adds a new Code section 6105, which provides

that tax convention information, with limited exceptions, cannot be

disclosed. Thus, the provision confirms that agreements concluded

under, and information received pursuant to, a tax convention are

confidential and can only be disclosed as provided in such tax convention.

Under the provision, a tax convention is defined to include any

income tax or gift and estate tax convention, or any other convention or bilateral agreement (including multilateral conventions and

agreements and any agreement with a possession of the United

States) providing for the avoidance of double taxation, the prevention of fiscal evasion, nondiscrimination with respect to taxes, the

exchange of tax relevant information with the United States, or

mutual assistance in tax matters.

It is the understanding of the conferees that competent authority agreements (also referred to as mutual agreements) generally

do not contain an explanation of the law or application of law to

facts. Instead, such agreements are negotiated arrangements to resolve issues of double taxation. Thus, the term tax convention information for purposes of the provision includes: (1) any agreement

entered into with the competent authority of one or more foreign

governments pursuant to a tax convention; (2) an application for

relief under a tax convention (sought by either a taxpayer or another competent authority); (3) any background information related

to such agreement or application; (4) documents implementing such

agreement; and (5) any other information exchanged pursuant to a

tax convention that is treated as confidential or secret under such

tax convention. The conferees intend that tax convention information would include documents and any other information that reflects tax convention information, including the association of a

particular treaty partner with a specific issue or matter.

The general rule that tax convention information cannot be

disclosed does not apply to the disclosure of tax convention information to persons or authorities (including courts and administrative bodies) that are entitled to disclosure under the tax convention. It also does not apply to any generally applicable procedural

rules regarding applications for relief under a tax convention. This

exception is intended to ensure that there is no restriction on the

release by the Secretary of publicly available procedural rules concerning matters such as how or when to make a request for competent authority assistance. Thus, certain material generated by

IRS, i.e., its Competent Authority procedures (primarily reflected in

Rev. Proc. 96–13), or similar material produced by a treaty partner

(for example, an Information Circular produced and published by

the Canadian tax authority) may be made available to the public.

The general rule does not apply to the disclosure of information not

relating to a particular taxpayer if, after consultation with the parVerDate 11-MAY-2000 19:35 Dec 21, 2000 Jkt 067191 PO 00000 Frm 01015 Fmt 6601 Sfmt 6601 E:\HR\OC\HR1033.009 pfrm01 PsN: HR1033
1012

ties to a tax convention, the Secretary determines that such disclosure would not impair tax administration. This is consistent with

current practice. An example of a general agreement that could be

disclosed under this provision is the agreement between the competent authorities of Mexico and the United States regarding the

maquiladora industry. That agreement, which was not taxpayer

specific, was publicized by press release IR–INT–1999–13. The conferees intend that the ‘‘impairment of tax administration’’ for purposes of this provision include, but not be limited to, the release

of documents that would adversely affect the working relationship

of the treaty partners. Under the provision, except as otherwise

provided, taxpayer-specific tax convention information could not be

publicly disclosed, even if it would not impair tax administration.

A taxpayer-specific competent authority agreement that relates

to the existence or possible existence of liability (or amount thereof)

of any person for any tax, penalty, interest, fine, forfeiture, or other

imposition or offense under the Code is return information under

section 6103. It is also an agreement pursuant to a tax convention

under section 6105. Return information, including taxpayer-specific

competent authority agreements, remains subject to the confidentiality provisions of section 6103. Thus, civil and criminal penalties

for the unauthorized disclosure of returns and return information

continue to apply to return information that is also covered by section 6105. However, tax convention information that is return information may only be disclosed to the extent provided in, and subject to the terms and conditions of, the relevant tax convention.

Interaction with FOIA and section 6110

Under the provision, closing agreements and similar agreements would not be considered written determinations for purposes

of section 6110 and, thus, would not be subject to public disclosure.

Such agreements would be defined as return information under

section 6103 and, therefore, such documents would be protected

from disclosure pursuant to Exemption 3 of the FOIA in conjunction with section 6103.

In addition, under the provision, section 6110 would not apply

to material covered by section 6105. In the litigation over FSAs,

there has been some dispute as to whether treaties qualify as statutes for purposes of withholding information pursuant to Exemption 3 of the FOIA. The conferees believe that treaties are the

equivalent of statutes for purposes of Exemption 3 of the FOIA.

Section 6105 satisfies Exemption 3 of the FOIA. Taxpayer-specific

tax convention information concerning a taxpayer’s tax liability,

such as taxpayer-specific competent authority agreements, would

be exempt from the FOIA as both return information under section

6103 and information protected from disclosure by tax convention

under section 6105. Agreements not relating to a particular taxpayer, and other tax convention information related to such agreements, could be disclosed under FOIA if it is determined that the

disclosure would not impair tax administration.

1013

Effective date

The provision applies to disclosures on, or after, the date of enactment, and thus, applies to all documents in existence on, or created after, the date of enactment.

SENATE AMENDMENT

No provision.

CONFERENCE AGREEMENT

The conference agreement follows H.R. 5542.

E. INCREASE JOINT COMMITTEE ON TAXATION REFUND REVIEW

THRESHOLD TO $2 MILLION (SEC. 305 OF THE BILL AND SEC. 6405

OF THE CODE)

PRESENT LAW

No refund or credit in excess of $1,000,000 of any income tax,

estate or gift tax, or certain other specified taxes, may be made

until 30 days after the date a report on the refund is provided to

the Joint Committee on Taxation (sec. 6405). A report is also required in the case of certain tentative refunds. Additionally, the

staff of the Joint Committee on Taxation conducts post-audit reviews of large deficiency cases and other select issues.

HOUSE BILL

No provision. However, H.R. 5542 increases the threshold

above which refunds must be submitted to the Joint Committee on

Taxation for review from $1,000,000 to $2,000,000. The staff of the

Joint Committee on Taxation would continue to exercise its existing statutory authority to conduct a program of expanded postaudit reviews of large deficiency cases and other select issues, and

the IRS is expected to cooperate fully in this expanded program.

Effective date.—The provision is effective on the date of enactment, except that the higher threshold does not apply to a refund

or credit with respect to which a report was made before the date

of enactment.

SENATE AMENDMENT

No provision.

CONFERENCE AGREEMENT

The conference agreement follows H.R. 5542.

F. CLARIFYING THE ALLOWANCE OF CERTAIN TAX BENEFITS WITH

RESPECT TO KIDNAPPED CHILDREN (SEC. 306 OF THE BILL AND

SECS. 2, 24, 32, AND 151 OF THE CODE)

PRESENT LAW

The Code generally requires that a taxpayer provide over onehalf of the support for each individual claimed as that taxpayer’s

dependent. Similarly, the child credit, the surviving spouse filing

status, and the head of household filing status require that a taxpayer satisfy certain requirements with regard to individuals that

1014

qualify as the taxpayer’s dependent(s). Finally, the earned income

credit for taxpayers with qualifying children generally is available

only if the taxpayer has the same principal place of abode for more

than one-half the taxable year with an otherwise qualifying child.

Recently published IRS guidance first denied a dependency exemption to certain taxpayers with kidnapped children (TAM

200034029), then allowed such tax benefits to such taxpayers (TAM

200038059).

HOUSE BILL

No provision. However, H.R. 5542 clarifies that the dependency

exemption, the child credit, the surviving spouse filing status, the

head of household filing status, and the earned income credit are

available to an otherwise qualifying taxpayer with respect to a

child who is presumed by law enforcement authorities to have been

kidnapped by someone who is not a member of the family of such

child or the taxpayer. Generally, this treatment continues for all

taxable years ending during the period that the child is kidnapped.

However, this treatment ends for the taxable year ending after the

calendar year in which it is determined that the child is dead (or,

if earlier, in which the child would have attained age 18).

Effective date.—The provision is effective for taxable years ending after the date of enactment.

SENATE AMENDMENT

No provision.

CONFERENCE AGREEMENT

The conference agreement follows H.R. 5542.

G. CONFORMING CHANGES TO ACCOMMODATE REDUCED ISSUANCES

OF CERTAIN TREASURY SECURITIES (SEC. 307 OF THE BILL AND

SEC. 995(f)(4) OF THE CODE)

PRESENT LAW

Code section 995(f)(4) dealing with the interest charge on the

deferred tax liability of the shareholders of a domestic international sales corporation provides that the interest rate be determined by reference to the average investment yield on United

States Treasury bills with maturities of 52 weeks. In addition, provisions of Federal law relating to interest on monetary judgments

in civil cases recovered in Federal district court and on a judgment

against the United States affirmed by the Supreme Court (Title

28), interest on certain unpaid criminal fines and penalties (Title

18), and interest on compensation for certain takings of property

(Title 40) determine the applicable interest rate by reference to 52-

week Treasury bills.

As a result of prior Congressional efforts at budgetary control,

current and projected Federal budget surpluses are reducing the

need of the Treasury Department to issue certain securities. The

Treasury Department has informed the Congress that on grounds

of efficient debt management, and predictability and liquidity for

1015

the financial markets, the Treasury Department has announced it

is likely to cease issuing 52-week Treasury bills.

HOUSE BILL

No provision. However, H.R. 5542 modifies the Code (sec.

995(f)(4)) and certain other parts of Federal law relating to interest

on monetary judgments in civil cases recovered in Federal district

court and on a judgment against the United States affirmed by the

Supreme Court (Title 28), interest on certain unpaid criminal fines

and penalties (Title 18), and interest on compensation for certain

takings of property (Title 40) that make specific reference to yields

on 52-week Treasury bills. H.R. 5542 generally replaces the reference to 52-week Treasury bills with a reference to the weekly average one-year constant maturity Treasury yield, as published by

the Board of Governors of the Federal Reserve System.

Effective date.—The provision is effective upon the date of enactment.

SENATE AMENDMENT

No provision.

CONFERENCE AGREEMENT

The conference agreement follows H.R. 5542.

H. AUTHORIZATION OF AGENCIES TO USE CORRECTED CONSUMER

PRICE INDEX (SEC. 308 OF THE BILL)

PRESENT LAW

Code section 1(f) provides for adjustments in the tax tables so

that inflation will not result in tax increases. Numerous other provisions of the Code are indexed as well. Section 1(f) provides that

inflation is measured by changes in the consumer price index

(‘‘CPI’’) for the preceding year as published by the Department of

Labor compared to the CPI for the calendar year 1992. Section 1(f)

directs the Secretary to publish tables with applicable tax rates

based upon calculated inflation adjustments by December 15 of the

year before the year to which the tables are to apply.

In addition, payments made under Social Security, certain Federal employee retirement programs, and certain payments to individuals under various welfare and income support programs are

adjusted annually by changes in the CPI.

On September 28, 2000, the Bureau of Labor Statistics (‘‘BLS’’)

announced that the agency had discovered a computational error in

quality adjustments of air conditioning as a part of the cost of

housing resulting in errors in the reported CPI between January

1999 and August 2000. The BLS reported that the CPI levels starting in January 1999 have been either 0.0, 0.1, or 0.2 index points

lower than the levels that would have been published without the

error. Consistent with agency guidelines and past practice, the BLS

announced that it is revising the reported CPI back to January

2000 to the fully correct levels. The BLS will make no change to

reported levels for January through December 1999. However, the

1016

BLS will make the corrected levels of the CPI for 1999 available

upon request.

HOUSE BILL

No provision. However, H.R. 5542 authorizes the Secretary of

the Treasury to use the corrected levels of the CPI for 1999 and

2000 for all purposes of the Code to which they might apply. H.R.

5542 directs the Secretary to prescribe new tables reflecting the

correct levels of the 1999 CPI for the 2000 tax year.

In addition, H.R. 5542 provides that the Director of the Office

of Management and Budget (‘‘OMB’’) shall assess Federal benefit

programs to ascertain the extent to which the CPI error has or will

result in a shortfall in program payments to individuals for 2000

and future years. The Director is directed to issue guidelines to

agency administrators to determine the extent, if any, of such

shortfalls in payments to individuals. The agency administrators

are to report their findings to the Director and to Congress within

30 days. H.R. 5542 provides that, within 60 days of the date of enactment, the Director instruct the head of any Federal agency

which administers an affected program to make a payment or payments to compensate for the shortfall and that such payments are

targeted to the amount of the shortfall experienced by individual

beneficiaries. Applicable Federal benefit programs include the oldage and survivors insurance program, the disability insurance program and the supplemental security income program under the Social Security Act and other programs as determined by the Director. H.R. 5542 directs the Director to report to the Congress on the

activities performed pursuant to this provision by April 1, 2001.

Effective date.—The provision is effective on the date of enactment.

SENATE BILL

No provision.

CONFERENCE AGREEMENT

The conference agreement follows H.R. 5542, except that the

conference agreement directs the Secretary to prescribe new tables

reflecting the correct levels of the CPI for the 2001 tax year.

The conferees note that error in the CPI was computational in

nature. The conferees support the BLS’s policy to incorporate methodological changes only on a prospective basis. The conferees also

understand that BLS policy provides that published indices generally not be revised except for those found to be in error for the

year in which the error was discovered or within the past twelve

months. The conferees recognize that the errors in the CPI date to

as long as 20 months prior to the announcement of the error. The

conferees recognize that the BLS’s policy of not publishing corrected index numbers, beyond those provided as described above,

has been applied in those rare cases where an error has been discovered in the past. However, the conferees understand that in the

past 25 years the few errors that have been discovered have involved sub-indices and have not affected the level of the CPI itself.

The last time the U.S. City Average All Items CPI was revised was

1017

50For example, John M. Berry, ‘‘Inflation Higher Than Reported,’’ The Washington Post,

September 27, 2000, p. E–1, John M. Berry, ‘‘Rent Error Leads to Revision Of the CPI,’’ The

Washington Post, September 29, 2000, p. E–3, Nicholas Kulish, ‘‘Major Price Index Is Revised

Upward As Result of Error,’’ The Wall Street Journal, September 28, 2000, p. A2, and Nicholas

Kulish, ‘‘Second-Period GDP Rose at 5.6% Annual Rate,’’ The Wall Street Journal, September

29, 2000, p. A2. The conferees observe that these press reports highlight the potential confusion

for the public regarding these data. The Washington Post reported that ‘‘the CPI figures for

1999 were not revised’’ (September 29, 2000 story) while The Wall Street Journal reported that

‘‘[t]he BLS said a complete revision of all the data sets would be released’’ (September 28, 2000

story) and ‘‘it [BLS] announced that it would revise the index’’ (September 29, 2000 story). 51The assumption of liabilities is treated as boot if it can be shown that ‘‘the principal purpose’’ of the assumption is tax avoidance on the exchange, or is a non-bona fide business purpose

(sec. 357(b)).

in December 1974, when the values for the months of April through

October 1974 were recalculated and released with issuance of the

November CPI. Therefore, past precedent does not strictly apply to

the present situation.

The conferees believe that integrity of official government data

is vital to policymakers and private individuals and businesses

throughout the country. The conferees emphasize that the CPI

plays an important role in economic planning. For this reason the

conferees are concerned that, while the BLS has published corrected CPI numbers for 2000, the BLS does not intend to publish

correct CPI numbers for 1999 as part of the official CPI series. To

its credit, the BLS announced the error publicly. The national press

reported the error.50 In the absence of a correction to the official

CPI series, the Federal government will be left in the position of

maintaining, as an official data series, index numbers that the Federal government has admitted are incorrect. The conferees believe

that the public’s trust in the integrity of official government data

is a paramount goal and the conferees strongly encourage the Commissioner of the Bureau of Labor Statistics to review carefully the

agency’s current policy with respect to publishing as part of an official series corrections to data found to be in error for reasons of

computational error. The conferees believe such a review should be

made both with respect to the error announced on September 28,

2000, and as a matter for the future for those rare circumstances

when such a similar computational error might once again arise.

I. PREVENT DUPLICATION OR ACCELERATION OF LOSS THROUGH ASSUMPTION OF CERTAIN LIABILITIES (SEC. 309 OF THE BILL AND

SEC. 358 OF THE CODE)

PRESENT LAW

Generally, no gain or loss is recognized when one or more persons transfer property to a corporation in exchange for stock and

immediately after the exchange such person or persons control the

corporation. However, a transferor recognizes gain to the extent it

receives money or other property (‘‘boot’’) as part of the exchange

(sec. 351).

The assumption of liabilities by the controlled corporation generally is not treated as boot received by the transferor,51 except

that the transferor recognizes gain to the extent that the liabilities

assumed exceed the total of the adjusted basis of the property

transferred to the controlled corporation pursuant to the exchange

(sec. 357(c)).

1018

52 Rev. Rul. 95–74, 1995–2 C.B. 36. The ruling addressed a parent corporation’s transfer to

a subsidiary of substantially all the assets of a manufacturing business, in exchange for stock

and the assumption of liabilities associated with the business, including certain contingent environmental remediation liabilities. These liabilities arose due to contamination of land during the

parent corporation’s operation of the manufacturing business. The transferor had no plan or intention to dispose of (or to have the subsidiary issue) any subsidiary stock. The IRS ruled that

the contingent liabilities would not reduce the transferor’s basis in the stock of the subsidiary

because the liabilities had not been taken into account by the transferor prior to the transferor

and had not given rise to deductions or basis for the transferor.

The assumption of liabilities by the controlled corporation generally reduces the transferor’s basis in the stock of the controlled

corporation that assumed the liabilities. The transferor’s basis in

the stock of the controlled corporation is the same as the basis of

the property contributed to the controlled corporation, increased by

the amount of any gain (or dividend) recognized by the transferor

on the exchange, and reduced by the amount of any money or property received, and by the amount of any loss recognized by the

transferor (sec. 358). For this purpose, the assumption of a liability

is treated as money received by the transferor.

An exception to the general treatment of assumption of liabilities applies to assumptions of liabilities that would give rise to a

deduction, provided the incurrence of such liabilities did not result

in the creation or increase of basis of any property. The assumption

of such liabilities is not treated as money received by the transferor

in determining whether the transferor has gain on the exchange.

Similarly, the transferor’s basis in the stock of the controlled corporation is not reduced by the assumption of such liabilities. The

Internal Revenue Service has ruled that the assumption by an accrual basis corporation of certain contingent liabilities for soil and

groundwater remediation would be covered by this exception.52

HOUSE BILL

No provision. However, H.R. 5542 contains a provisions to limit

the acceleration or duplication of losses through assumptions of liabilities.

Under H.R. 5542, if the basis of stock (determined without regard to this provision) received by a transferor as part of a tax-free

exchange with a controlled corporation exceeds the fair market

value of the stock, then the basis of the stock received is reduced

(but not below the fair market value) by the amount (determined

as of the date of the exchange) of any liability that (1) is assumed

in exchange for such stock, and (2) did not otherwise reduce the

transferor’s basis of the stock by reason on the assumption. Except

as provided by the Secretary of the Treasury, this provision does

not apply where the trade or business with which the liability is

associated is transferred to the corporation as part of the exchange,

or where substantially all the assets which the liability is associated are transferred to the corporation as part of the exchange.

The exception for transfers of a trade or business, or of substantially all the assets, with which a liability is associated, are intended to obviate the need for valuation or basis reduction in such

cases. The exceptions are not intended to apply to situation involving the selective transfer of assets that may bear some relationship

to the liability, but that do not represent the full scope of the trade

1019

53Section 357(d)(2) contains a limitation in the case of certain nonrecourse liabilities. Also,

under section 357, regulations, if issued, may provide for different results.

or business, (or substantially all the assets) with which the liability

is associated.

For purposes of the provision, the term ‘‘liability’’ includes

fixed or contingent obligation to make payment, without regard to

whether such obligation or potential obligation is otherwise taken

into account under the Code. The determination whether a liability

(as more broadly defined for purposes of this provision) has been

assumed is made in accordance with the provisions of section

357(d)(1) of the Code. Under the standard of 357(d)(1), a recourse

liability is treated as assumed if, based on all the facts and circumstances, the transferee has agreed to and is expected to satisfy

such liability (or portion thereof), whether or not the transferor has

been relieved of the liability. For example, if a transferee corporation does not formally assume a recourse obligation or potential obligation of the transferor, but instead agrees and is expected to indemnify the transferor with respect to all or a portion of such an

obligation, then the amount that is agreed to be indemnified is

treated as assumed for purposes of the provision, whether or not

the transferor has been relieved of such liability. Similarly, a nonrecourse liability is treated as assumed by the transferee of any

asset subject to such liability.53

The application of the provision is illustrated in the following

example: Assume a taxpayer transfers assets with an adjusted

basis and fair market value of $100 to its wholly-owned corporation

and the corporation assumes $40 of liabilities (the payment of

which would give rise to a deduction). Thus, the value of the stock

received by the transferor is $60. Under present law, the basis of

the stock would be $100. The provision requires that the basis of

the stock be reduced to $60 (i.e., a reduction of $40). Except as provided by the Secretary, no basis reduction is required if the transferred assets consisted of the trade or business, or substantially all

the assets, with which the liability is associated.

The provision does not change the tax treatment with respect

to the transferee corporation.

The Secretary of the Treasury is directed to prescribe rules

providing appropriate adjustments to prevent the acceleration or

duplication of losses through the assumption of liabilities (as defined in the provision) in transactions involving partnerships. The

Secretary may also provide appropriate adjustments in the case of

transactions involving S corporations. In the case of S corporations,

such rules may be applied instead of the otherwise applicable basis

reduction rules.

Effective Date.—The provision is effective for assumptions of liabilities on or after October 19, 1999. Except as provided by the

Secretary, the rule addressing transactions involving partnerships

are effective with the same effective date. Any rules addressing

transactions involving S corporations may likewise be effective for

assumptions of liabilities on or after October 19, 1999, or such later

date as may be prescribed in such rules.

1020

54 E.g., sec. 6103(j), and 6103(l)(1) and (5). 55Sec. 6103(p)(2)(B). 56Sec. secs. 7431, 7213, and 7213A.

SENATE AMENDMENT

No provision. On April 4, 2000, Senators Roth and Moynihan

introduced a bill (S. 2354) that is the same as the provision in H.R.

5542.

CONFERENCE AGREEMENT

The conference agreement follows H.R. 5542.

J. DISCLOSURE OF RETURN INFORMATION TO THE CONGRESSIONAL

BUDGET OFFICE (SEC. 310 OF THE BILL AND NEW SEC. 6103(j)(6) OF

THE CODE)

PRESENT LAW

Federal tax returns and return information are confidential

and cannot be disclosed unless authorized by the Code. Section

6103 authorizes certain agencies to receive tax returns and return

information for statistical use and for other specified purposes.54

Section 6103 also permits the Secretary of the Treasury (‘‘the Secretary’’) to provide return information to any person authorized to

receive it by any mode or means that the Secretary determines necessary or appropriate.55 Persons making unauthorized disclosures

or inspections of tax returns and return information are subject to

criminal and civil penalties.56

HOUSE BILL

No provision.

SENATE AMENDMENT

No provision.

CONFERENCE AGREEMENT

Disclosure of return information

The Congressional Budget Office (‘‘CBO’’) is in the process of

developing the capability to make projections of the Social Security

and Medicare programs over long periods of time. To facilitate the

development and operation of long-term models of Social Security

and Medicare, CBO needs continuing access to records from the

IRS. Specifically, CBO seeks two SSA files that contain return information—the Social Security Earnings Record and the Master

Beneficiary Record. These files contain individual earnings data

compiled from tax returns (Forms W–2), which are protected from

disclosure by section 6103. In addition, CBO may request other

records, including those matched with survey data.

The conference agreement amends section 6103 to permit the

Secretary to furnish to CBO return information to the extent such

information is necessary for purposes of CBO’s long-term models of

Social Security and Medicare. This authority extends to the development, operation, and maintenance by CBO of its long-term models of Social Security and Medicare. It is the intent of Congress

1021

57Sec. 6103(p)(4). 58See secs. 7431, 7213, and 7213A. 59 2 U.S.C. sec. 601(d). 60 In addition to other tax technical corrections, the bill contains the technical corrections

contained in H.R. 2488, the Financial Freedom Act of 1999 (106th Cong. 1st Sess., reported by

the House Committee on Ways and Means, H. Rept. 106–238, July 16, 1999, 393–397), as

passed by the House, and S. 1429, the Taxpayer Refund Act of 1999 (reported by the Senate

Committee on Finance, S. Rept. 106–120, July 23, 1999, 221–225), as passed by the Senate. (The

technical corrections were not included in the conference agreement to H.R. 2488, the Taxpayer

Refund and Relief Act of 1999 (106th Cong., 1st Sess., H. Rept. 106–289, Aug. 4, 1999, 542–

543). The Taxpayer Refund and Relief Act of 1999 was vetoed by President Clinton.) However,

the bill does not include the following provisions enacted in other legislation: sections 1601(b)(2)

and (c) of H.R. 2488 (and section 504(c) of S. 1429), relating to the Vaccine Trust Fund, which

were enacted in the ‘‘Ticket to Work and Work Incentives Improvement Act of 1999’’ (P.L. 106–

170, sec. 523(b)).

that all requests for information made by CBO under this provision

be made to the Secretary and that the Secretary use his authority

under section 6103(p)(2) such that the SSA or other agency can furnish directly to CBO, for purposes of CBO’s long-term models of Social Security and Medicare, the files they possess that incorporate

return information. It is also the intent of Congress that the Secretary furnish such other return information under this provision

as is necessary for purposes of CBO’s Social Security and Medicare

long-term models.

Under the provision, CBO is subject to the present-law safeguard requirements for tax returns and return information.57 Further, CBO is prohibited from disclosing any tax returns and return

information received under this provision except in a form that

cannot be associated with, or otherwise identify, directly or indirectly a particular taxpayer. Present-law civil and criminal penalties apply to the unauthorized disclosure or inspection of tax returns or return information.58

Addition of general CBO confidentiality provisions

The conference agreement adds to the Congressional Budget

Act of 1974 59 additional confidentiality provisions which would require CBO to provide the same level of confidentiality to data it obtains from other agencies as that to which the agencies themselves

are subject. Officials and employees of CBO would be subject to the

same statutory penalties for unauthorized disclosure as the employees of the agencies from which CBO obtain the data.

Subtitle B.—Tax Technical Corrections (secs. 311–319 of the bill)

HOUSE BILL

No provision. However, H.R. 5542 includes tax technical corrections.60 Except as otherwise provided, the technical corrections contained in the bill generally are effective as if included in the originally enacted related legislation. The provisions under the IRS Restructuring Act of 1998 relating to innocent spouse and to procedural and administrative issues (other than the provision relating

to clarification of Tax Court authority to issue appealable decisions)

are effective upon the date of enactment of the bill.

1022

AMENDMENTS RELATING TO THE TICKET TO WORK AND WORK

INCENTIVES IMPROVEMENT ACT OF 1999

Research credit.—The provision clarifies the anti-double dip

rule coordinating the research credit (sec. 41) and the Puerto Rico

economic activity credit (sec. 30A). It is arguable that the presentlaw provisions could be construed so that the amount of wages on

which a taxpayer could claim the section 30A credit is reduced only

by the amount of credit claimed under section 41, rather than by

the amount of wages upon which the section 41 credit is based.

This result is inconsistent with the legislative history of the original provisions. The provision deletes the words ‘‘or credit’’ after ‘‘deduction’’ in section 280C(c)(1), and adds a new subsection in section

30A specifying that wages or other expenses taken into account for

section 30A may not be taken into account for section 41.

Taxable REIT subsidiaries.—The provision clarifies that a

REIT’s redetermined rents (described in sec. 857(b)(7)(B)) that are

subject to tax under section 857(b)(7)(A) do not include amounts received from a taxable REIT subsidiary that would be excluded from

unrelated business taxable income (under sec. 512(b)(3), relating to

certain rents, if received by certain types of organizations described

in sec. 511(a)(2)).

Partnership basis adjustments.—The provision provides that

the rule in the consolidated return regulations (Treas. Reg. sec.

1.1502–34) aggregating stock ownership for purposes of section 332

(relating to complete liquidation of a subsidiary that is a controlled

corporation) also applies for purposes of section 732(f) (relating to

basis adjustments to assets of a controlled corporation received in

a partnership distribution).

Amendments related to the Tax and Trade Relief Extension Act of

1998

Exempt organizations.—The provision clarifies that nonexempt

charitable trusts and nonexempt private foundations are subject to

the public disclosure requirements of section 6104(d).

Capital gains.—The provision clarifies that if (1) a charitable

remainder trust sold section 1250 property after July 28, 1997, and

before January 1, 1998, (2) the property was held more than one

year but not more than 18 months, and (3) the capital gain is distributed after December 31, 1997, then any capital gain attributable to depreciation will be taxed at 25 percent (rather than 28

percent). Treasury has published a notice (Notice 99–17, 1999–14

I.R.B., April 5, 1999) providing that the gain is taxed at 25 percent.

Amendments related to the Internal Revenue Service Restructuring

and Reform Act of 1998

Innocent spouse

Timing of request for relief.—Confusion currently exists as to

the appropriate point at which a request for innocent spouse relief

should be made by the taxpayer and considered by the IRS. Some

have read the statute to prohibit consideration by the IRS of requests for relief until after an assessment has been made, i.e., after

the examination has been concluded, and if challenged, judicially

determined. Others have read the statute to permit claims for relief

1023

from deficiencies to be made upon the filing of the return before

any preliminary determination as to whether a deficiency exists or

whether the return will be examined. The consideration of innocent

spouse relief requires that the IRS focus on the particular items

causing a deficiency; until such items are identified, the IRS cannot

consider these claims. Congress did not intend that taxpayers be

prohibited from seeking innocent spouse relief until after an assessment has been made; Congress intended the proper time to raise

and have the IRS consider a claim to be at the same point where

a deficiency is being considered and asserted by the IRS. This is

the least disruptive for both the taxpayer and the IRS since it allows both to focus on the innocent spouse issue while also focusing

on the items that might cause a deficiency. It also permits every

issue, including the innocent spouse issue, to be resolved in single

administrative and judicial process. The bill clarifies the intended

time by permitting the election under (b) and (c) to be made at any

point after a deficiency has been asserted by the IRS. A deficiency

is considered to have been asserted by the IRS at the time the IRS

states that additional taxes may be owed. Most commonly, this occurs during the Examination process. It does not require an assessment to have been made, nor does it require the exhaustion of administrative remedies in order for a taxpayer to be permitted to request innocent spouse relief.

Allowance of refunds.—The current placement in the statute of

the provision for allowance of refunds may inappropriately suggest

that the provision applies only to the United States Tax Court,

whereas it was intended to apply administratively and in all

courts. The bill clarifies this by moving the provision to its own

subsection.

Non-exclusivity of judicial remedy.—Some have suggested that

the IRS Restructuring Act administrative and judicial process for

innocent spouse relief was intended to be the exclusive avenue by

which relief could be sought. The bill clarifies Congressional intent

that the procedures of section 6015(e) were intended to be additional, non-exclusive avenues by which innocent spouse relief could

be considered.

Time for filing a petition with the Tax Court.—As enacted, the

time period for seeking a redetermination in the Tax Court of innocent spouse relief begins on the date of the determination as opposed to the day after the determination. This period is one day

shorter than that generally applicable to petition the Tax Court

with respect to a deficiency notice (sec. 6213) and the period during

which collection activities are prohibited and the limitations period

is suspended. The bill clarifies the computation of this period and

conforms it to the generally applicable 90-day period for petitioning

the Tax Court. Conforming amendments are made as to the period

for which collection activities are prohibited and collection limitations suspended.

Waiver of final determination upon agreement as to relief.—

Congress intended in enacting section 6015 to provide a simple and

efficient procedure by which the IRS could consider relief, and if relief was denied (in whole or in part) and the spouse requesting

such relief did not agree with such denial, such issue could be considered by the Tax Court. Congress did not intend to require a

1024

rigid formal process when the IRS and the spouse requesting relief

agreed on the extent of relief to be granted. However, the provisions of section 6015(e) have been interpreted as requiring the

issuance in all circumstances of a formal ‘‘Notice of Determination,’’

which contains a statement of the time period within which a petition may be filed with the Tax Court and which delays final resolution of the request for relief until the expiration of the period for

filing a petition with the Tax Court. The issuance of the Notice of

Determination is confusing to the taxpayer when the requested relief was fully granted or when the IRS and the taxpayer otherwise

agreed on the application of the innocent spouse provisions to the

taxpayer’s case. It also may cause unnecessary filings with the Tax

Court and delay the closing of the case until the time for filing with

the Tax Court expires.

Congress has addressed the analogous situation in the deficiency context in section 6213(d). In such situations, upon written

agreement, the IRS may adjust the taxpayer’s liability as agreed,

and no additional formal notice is necessary. The bill reflects that

an analogous waiver was intended to apply in the innocent spouse

context. The bill consequently permits taxpayers and the IRS to

enter into a similar written agreement in innocent spouse cases,

which allows for the taxpayer’s liability to be immediately adjusted

as agreed, and makes unnecessary a formal Notice of Determination or Tax Court review. This written agreement is to specify the

details of the agreement between the IRS and the taxpayer as to

the nature and extent of innocent spouse relief that will be provided. Conforming amendments are made as to the period for

which collection activities are prohibited and collection limitations

suspended.

Procedural and administrative issues

Disputes involving $50,000 or less.—The provision clarifies that

the small case procedures of the Tax Court are available with respect to innocent spouse disputes and disputes continuing from the

pre-levy administrative due process hearing. The small case procedures provide an accessible forum for taxpayers who have small

claims with less formal rules of evidence and procedure. Use of the

procedure is optional to the taxpayer, with the concurrence of the

Tax Court. In view of the recent enactment of the innocent spouse

and pre-levy administrative due process hearing provisions, it is

anticipated that the Tax Court will give careful consideration to (1)

a motion by the Commissioner of Internal Revenue to remove the

small case designation (as authorized by Rules 172 and 173 of the

Tax Court Rules) when the orderly conduct of the work of the

Court or the administration of the tax laws would be better served

by a regular trial of the case, as well as (2) the financial impact

upon the taxpayer, including additional legal fees and costs, of not

utilizing small case treatment. For example, removing the small

case designation may be appropriate when a decision in the case

will provide a precedent for the disposition of a substantial number

of other cases. It is anticipated that motions by the Commissioner

to remove the small case designation will be made infrequently.

Authority to enjoin collection actions.—While a dispute is pending under the pre-levy administrative due process hearing proceVerDate 11-MAY-2000 19:35 Dec 21, 2000 Jkt 067191 PO 00000 Frm 01028 Fmt 6601 Sfmt 6601 E:\HR\OC\HR1033.009 pfrm01 PsN: HR1033
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dures, levy action is statutorily suspended for that period. The Tax

Court and district courts are expressly granted authority to enjoin

improper levy action in general, but that authority does not explicitly extend to improper levy action that occurs during the period

when levy action is statutorily suspended under the administrative

due process provisions. The provision clarifies the ability of the

courts (including the Tax Court) to enjoin levy during the period

that levy is required to be suspended with respect to a dispute

under the pre-levy administrative due process hearing procedures.

Clarification of permissible extension of limitations period for

installment agreements.—Uncertainty exists as to whether the permissible extension of the period of limitations in the context of installment agreements is governed by reference to an agreement of

the parties pursuant to section 6502 or by reference to the period

of time during which the installment agreement is in effect pursuant to sections 6331(k)(3) and (i)(5). The provision clarifies that the

permissible extension of the period of limitations in the context of

installment agreements is governed by the pertinent provisions of

section 6502.

Clarification of Tax Court authority to issue appealable decisions.—The statutory provision for judicial review of a dispute concerning the pre-levy administrative due process hearing may be unclear as to whether a determination of the Tax Court is an appealable decision. The provision clarifies that the determination of the

Tax Court (other than under the small case procedures) in a dispute concerning the pre-levy administrative due process hearing is

a decision of the Tax Court and would be reviewable as such.

Other issues

IRS restructuring.—When the Office of the Chief Inspector was

replaced by the Treasury Inspector General for Tax Administration

(TIGTA) under the IRS Restructuring and Reform Act of 1998, Inspection’s responsibilities were assigned to the TIGTA. TIGTA personnel are Treasury, rather than IRS, personnel. TIGTA personnel

still need to make investigative disclosures to carry out the duties

they took over from Inspection and their additional tax administration responsibilities. However, section 6103(k)(6) refers only to ‘‘internal revenue’’ personnel. The provision clarifies that section

6103(k)(6) permits TIGTA personnel to make investigative disclosures.

Compliance.—Section 3509 of the IRS Restructuring and Reform Act of 1998 expanded the disclosure rules of section 6110 to

also cover Chief Counsel advice (sec. 6110(i)). This is a conforming

change related to ongoing investigations. The provision adds to section 6110(g)(5)(A), after the words technical advice memorandum,

‘‘or Chief Counsel advice.’’

Amendments related to the Taxpayer Relief Act of 1997

Deficiency created by overstatement of refundable child credit.—

The provision treats the refundable portion of the child credit

under section 24(d) as part of a ‘‘deficiency.’’ Thus, the usual assessment procedures applicable to income taxes will apply to both

the nonrefundable and the refundable portions of the child credit.

(This will reverse the conclusion reached by Internal Revenue ServVerDate 11-MAY-2000 19:35 Dec 21, 2000 Jkt 067191 PO 00000 Frm 01029 Fmt 6601 Sfmt 6601 E:\HR\OC\HR1033.009 pfrm01 PsN: HR1033
1026

ice Chief Counsel Memorandum 199948027 interpreting present

law.)

Roth IRAs.—Code section 3405 provides for withholding with

respect to designated distributions from certain tax-favored arrangements, including IRAs. In general, section 3405(e)(1)(B)(ii) excludes from the definition of a designated distribution the portion

of any distribution which it is reasonable to believe is excludable

from gross income. However, all distributions from IRAs are treated as includible in income. The exception was consistent with prior

law when all IRA distributions were taxable, but does not account

for the tax-free nature of certain Roth IRA distributions. The provision extends the exception to Roth IRAs.

Capital gain election.—The provision provides that an election

to recognize gain or loss made pursuant to section 311(e) of the

Taxpayer Relief Act of 1997 does not apply to assets disposed of in

a recognition transaction within one year of the date the election

would otherwise have been effective. Thus, for example, if an asset

is sold in 2001, no election may be made with respect to that asset.

In addition, it is clarified that the deemed sale and repurchase by

reason of the election is not taken into account in applying the

wash sales rules of section 1091.

Straight-line depreciation under AMT.—The provision clarifies

that the Taxpayer Relief Act of 1997 did not change the requirement that the straight-line method of depreciation be used in computing the alternative minimum tax (‘‘AMT’’) depreciation allowance for section 1250 property. It is arguable that the changes

made by that Act could be read as inadvertently allowing accelerated depreciation under the AMT for section 1250 property which

is allowed accelerated depreciation under the regular tax.

Transportation benefits.—Under present law, salary reduction

amounts are generally treated as compensation for purposes of the

limits on contributions and benefits under qualified plans. In addition, an employer can elect whether or not to include such amounts

for nondiscrimination testing purposes. The IRS Reform Act permitted employers to offer a cash option in lieu of qualified transportation benefits. The provision treats salary reduction amounts

used for qualified transportation benefits the same as other salary

reduction amounts for purposes of defining compensation under the

qualified plan rules.

Tax Court jurisdiction.—The Tax Court recently held that its

jurisdiction pursuant to section 7436 extends only to employment

status, not to the amount of employment tax in dispute (Henry

Randolph Consulting v. Comm’r, 112 T.C. #1, Jan. 6, 1999). The

provision provides that the Tax Court also has jurisdiction over the

amount.

Amendments related to the Balanced Budget Act of 1997

Tobacco floor stocks tax.—The provision clarifies that the floor

stocks taxes imposed on January 1, 2000, and January 1, 2002,

apply only to cigarettes rather than to all tobacco products. As enacted, the law could be construed as ambiguous, referring to imposition on all tobacco products but imposing liability only with respect to cigarettes.

1027

Tobacco excise tax.—Conforming amendments are provided to

two provisions to reflect the fact that the tax on cigarette papers

is not imposed on ‘‘books’’ or papers since January 1, 2000.

Coordination of trade rules and tobacco excise tax.—Clarification is provided that the penalty on reimporting cigarettes other

than for return to a manufacturer (effective January 1, 2000) does

not apply to cigarettes re-imported by individuals to the extent

those cigarettes can be entered into the U.S. without duty or tax

under the Harmonized Tariff Schedule.

Amendment related to the Small Business Job Protection Act of

1996

Work opportunity tax credit.—Section 51(d)(2) refers to eligibility for the work opportunity tax credit with respect to certain

welfare recipients without taking into account the enactment of the

temporary assistance for needy families (‘‘TANF’’) program. The

provisions conform references in the work opportunity tax credit to

the operation of TANF.

Electing small business trusts holding S corporation stock.—

The provision allows an electing small business trust (sec. 1361(e))

to have an organization described in section 170(c)(1) (relating to

State and local governments) as a beneficiary if the organization

holds a contingent interest and is not a potential current beneficiary.

Definition of lump-sum distribution.—Section 1401(b) of the

Small Business Job Protection Act of 1996 Act repealed 5-year

averaging for lump-sum distributions. The definition of lump-sum

distribution was preserved for other provisions, primarily those relating to NUA in employer securities. The definition was moved

from section 402(d)(4)(A) to section 402(e)(4)(D)(i). This definition

included the following sentence: ‘‘A distribution of an annuity contract from a trust or annuity plan referred to in the first sentence

of this subparagraph shall be treated as a lump sum distribution.’’

The provision adds this language back into the definition of lumpsum distribution. The sentence is relevant to section 401(k)(1)(B),

which permits certain distributions if made as a ‘‘lump-sum distribution.’’

IRAs for nonworking spouses.—Section 1427 of the Small Business Job Protection Act of 1996 expanded the IRA deduction for

nonworking spouses. The maximum permitted IRA contributions is

generally limited by the individual’s earned income. However,

under present law, it is possible for a nonworking (or lesser earning) spouse to make IRA contributions in excess of the couple’s

combined earned income. The following example illustrates present

law.

Example: Suppose H and W retire in the middle of January,

1999. In that year, H earns $1,000 and W earns $500. Both are active participants in an employer-sponsored retirement plan. Their

modified AGI is $60,000. They make no Roth IRA contributions.

Before application of the income phase-out rules, the maximum deductible IRA contribution that H can make is $1,000 (sec.

219(b)(1)). After application of the income phase-out rule in section

219(g), H’s maximum contribution is $200, and H contributes that

1028

amount to an IRA. Under 408(o)(2)(B), H can make nondeductible

contributions of $800 ($1,000–$200).

W’s maximum permitted deductible contribution under section 219(c)(1)(B), before the income phase-out, is $1,300 (the sum of H

and W’s earned income ($1,500), less H’s deductible IRA contribution ($200)). Under the income phase-out, W’s deductible contribution is limited to $200, and she can make a nondeductible contribution of $1,000 ($1,300–$200).

The total permitted contributions for H and W are $2,300 ($1,000 for H plus $1,300 for W). The combined contribution should

be limited to $1,500, their combined earned income.

The provision provides that the contributions for the spouse

with the lesser income cannot exceed the combined earned income

of the spouses.

Amendment related to the Revenue Reconciliation Act of 1990

Qualified tertiary injectant expenses.—The provision clarifies

that the enhanced oil recovery credit (sec. 43) applies with respect

to qualified tertiary injectant expenses described in section 193(b)

that are paid or incurred in connection with a qualified enhanced

oil recovery project, and that are deductible for the taxable year

(regardless of the provision allowing the deduction). Purchased and

self-produced injectants are treated the same for purposes of the

section 43 credit.

Amendments to other Acts (sec. 318 of the bill)

Insurance.—The legislative history of section 7702A(a) (enacted

in the Technical and Miscellaneous Revenue Act of 1988) indicated

that if a life insurance contract became a modified endowment contract (‘‘MEC’’), then the MEC status could not be eliminated by exchanging the MEC for another contract. Section 7702A(a)(2), however, arguably might be read to allow a policyholder to exchange

a MEC for a contract that does not fail the 7-pay test of section

7702A(b), then exchange the second contract for a third contract,

which would not literally have been received in exchange for a contract that failed to meet the 7-pay test. The provision clarifies section 7702A(a)(2) to correspond to the legislative history, effective as

if enacted with the Technical and Miscellaneous Revenue Act of

1988 (generally, for contracts entered into on or after June 21,

1988).

Insurance.—Under section 7702A, if a life insurance contract

that is not a modified endowment contract is actually or deemed

exchanged for a new life insurance contract, then the 7-pay limit

under the new contract is first be computed without reference to

the premium paid using the cash surrender value of the old contract, and then would be reduced by 1⁄7 of the premium paid taking

into account the cash surrender value of the old contract. For example, if the old contract had a cash surrender value of $14,000

and the 7-pay premium on the new contract would equal $10,000

per year but for the fact that there was an exchange, the 7-pay premium on the new contract would equal $8,000 ($10,000–$14,000/7).

However, section 7702A(c)(3)(A) arguably might be read to suggest

that if the cash surrender value on the new contract was $0 in the

first two years (due to surrender charges), then the 7-pay premium

1029

might be $10,000 in this example, unintentionally permitting policyholders to engage in a series of ‘‘material changes’’ to circumvent

the premium limitations in section 7702A. The provision clarifies

section 7702A(c)(3)(A) to refer to the cash surrender value of the

old contract, effective as if enacted with the Technical and Miscellaneous Revenue Act of 1988 (generally, for contracts entered

into on or after June 21, 1988).

Worthless securities.—Section 165(g)(3) provides a special rule

for worthless securities of an affiliated corporation. The test for affiliation in section 165(g)(3)(A) is the 80-percent vote test for affiliated groups under section 1504(a) that was in effect prior to 1984.

When section 1504(a) was amended in the Deficit Reduction Act of

1984 to adopt the vote and value test of present law, no corresponding change was made to section 165(g)(3)(A), even though

the tests had been identical until then. The provision conforms the

affiliation test of section 165(g)(3)(A) to the test in section

1504(a)(2), effective for taxable years beginning after December 31,

1984.

Exception for certain annuities under OID rules.—The Deficit

Reduction Act of 1984 expanded the prior-law rules for inclusion in

income of original issue discount (‘‘OID’’) on debt instruments. That

Act provided an exception from the definition of a debt instrument

for certain annuity contracts, including any annuity contract to

which section 72 applies and that is issued by an insurance company subject to tax under subchapter L of the Code (and meets certain other requirements) (sec. 1275(a)(1)(B)(ii)). The provision clarifies that an annuity contract otherwise meeting the applicable requirements also comes within the exception of section

1275(a)(1)(B)(ii) if it is issued by an entity described in section

501(c) and exempt from tax under section 501(a), that would be

subject to tax as an insurance company under subchapter L if it

were not exempt under section 501(a). For example, the provision

clarifies that an annuity contract otherwise meeting the requirements that is issued by a fraternal beneficiary society which is exempt from Federal income tax under section 501(a), and which is

described in section 501(c)(8), comes within the exception under

section 1275(a)(1)(B)(ii). It is understood that charitable gift annuities (as defined in sec. 501(m)) depend (in whole or in substantial

part) on the life expectancy of one or more individuals, and thus

come within the exception under section 1275(a)(1)(B)(i). The provision is effective as if included with section 41 of the Deficit Reduction Act of 1984 (i.e., for taxable years ending after July 18, 1984).

Losses from section 1256 contracts.—Section 6411 allows tentative refunds for NOL carry-backs, business credit carrybacks and,

for corporations only, capital loss carrybacks. Individuals normally

cannot carry back a capital loss. However, section 1212(c) does

allow a carryback of section 1256 losses, if elected by the taxpayer.

The provision amends section 6411(a) by including a reference to

section 1212(c), effective as if included with section 504 of the Economic Recovery Tax Act of 1981.

Highway Trust Fund.—The provision modifies administrative

procedures of the Highway Trust Fund to conform to the 1993 repeal of the special tax rate applicable to ethanol prior to 1994. The

provision is effective for taxes received after the date of enactment.

1030

61The holding period for futures transactions in a commodity is 6 months. The 6-month

holding period does not apply to futures which are subject to the mark-to-market rules of section

1256, discussed below.

This ensures that retroactive adjustments, if any, are not made to

the Highway Trust Fund.

Conforming amendment for expenditures from Vaccine Injury

Compensation Trust Fund.—The provision makes a conforming

amendment to the expenditure purposes of the Vaccine Injury

Compensation Trust Fund to enable certain payments to be made

from the Trust Fund.

Clerical changes

The bill makes a number of clerical and typographical amendments to the Code.

SENATE AMENDMENT

No provision.

CONFERENCE AGREEMENT

The conference agreement follows H.R. 5542.

TITLE IV.—TAX TREATMENT OF SECURITIES FUTURES

CONTRACTS

(SEC. 401 OF THE BILL AND SECS. 1234B AND 1256 OF THE CODE)

PRESENT LAW

In general

Generally, gain or loss from the sale of property, including

stock, is recognized at the time of sale or other disposition of the

property, unless there is a specific statutory provision of nonrecognition (sec. 1001).

Gains and losses from the sale or exchange of capital assets

are subject to special rules. In the case of individuals, net capital

gain is generally subject to a maximum tax rate of 20 percent (sec.

1(h)). Net capital gain is the excess of net long-term capital gains

over net short-term capital losses. Also, capital losses are allowed

only to the extent of capital gains plus, in the case of individuals,

$3,000 (sec. 1211). Capital losses of individuals may be carried forward indefinitely and capital losses of corporations may be carried

back three years and forward five years (sec. 1212).

Generally, in order for gains or losses on a sale or exchange

of a capital asset to be long-term capital gains or losses, the asset

must be held for more than one year (sec. 1222).61 A capital asset

generally includes all property held by the taxpayer except certain

enumerated types of property such as inventory (sec. 1221).

Section 1256 contracts

Special rules apply to ‘‘section 1256 contracts,’’ which include

regulated futures contracts, certain foreign currency contracts, nonequity options, and dealer equity options. Each section 1256 contract is treated as if it were sold (and repurchased) for its fair market value on the last business day of the year (i.e., ‘‘marked to marVerDate 11-MAY-2000 19:35 Dec 21, 2000 Jkt 067191 PO 00000 Frm 01034 Fmt 6601 Sfmt 6601 E:\HR\OC\HR1033.009 pfrm01 PsN: HR1033
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62 Rev. Rul. 94–63, 1994–2 C.B. 188, provides that the determination made by the Securities

and Exchange Commission will determine whether or not an option is ‘‘broad based’’. 63 A special rule provides that any gain or loss with respect to dealer equity options which

are allocable to limited partners or limited entrepreneurs are treated as short-term capital gain

or loss and do not qualify for the 60 percent long-term, 40 percent short-term capital gain or

loss treatment of section 1256(a)(3). 64 As discussed above, dealers in equity options are subject to mark-to-market accounting

and the special capital gain rules of section 1256.

ket’’). Any gain or loss with respect to a section 1256 contract

which is subject to the mark-to-market rule is treated as if 40 percent of the gain or loss were short-term capital gain or loss and 60

percent were long-term capital gain or loss. This results in a maximum rate of 27.84 percent on any gain for taxpayers other than

corporations. The mark-to-market rule (and the special 60/40 capital treatment) is inapplicable to hedging transactions.

A ‘‘regulated futures contract’’ is a contract (1) which is traded

on or subject to the rules of a national securities exchange registered with the Securities Exchange Commission, a domestic board

of trade designated a contract market by the Commodities Futures

Trading Commission, or similar exchange, board of trade, or market, and (2) with respect to which the amount required to be deposited and which may be withdrawn depends on a system of marking

to market.

A ‘‘dealer equity option’’ means, with respect to an options

dealer, an equity option purchased in the normal course of the activity of dealing in options and listed on the qualified board or exchange on which the options dealer is registered. An equity option

is an option to buy or sell stock or an option the value of which

is determined by reference to any stock, group or stocks, or stock

index, other than an option on certain broad-based groups of stock

or stock index.62 An options dealer is any person who is registered

with an appropriate national securities exchange as a market

maker or specialist in listed options, or who the Secretary of the

Treasury determines performs functions similar to market makers

and specialists.63

Mark to market accounting for dealers in securities

Under present law, a dealer in securities must compute its income from dealer in securities pursuant to mark-to-market of accounting (sec. 475). Gains and losses are treated as ordinary income and loss. Traders in securities, and dealers and traders in

commodities may elect to use this method of accounting, including

the ordinary income treatment. Section 1256 contracts are not

treated as securities for purposes of section 475.64

Short sales

In the case of a ‘‘short sale’’ (i.e., where the taxpayer sells borrowed property and later closes the sale by repaying the lender

with substantially identical property), any gain or loss on the closing transaction is considered gain or loss from the sale or exchange

of a capital asset if the property used to close the short sale is a

capital asset in the hands of the taxpayer, but the gain is ordinarily treated as short-term gain (sec. 1233(a)).

The Internal Revenue Code (the ‘‘Code’’) also contains several

rules intended to prevent the transformation of short-term capital

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65 An exception applies to an option to sell acquired on the same day as the property identified as intended to be used (and is so used) in exercising the option is acquired (sec. 1233(c)).

gain into long-term capital gain or long-term capital loss into shortterm loss by simultaneously holding property and selling short substantially identical property (sec. 1233(b) and (d)). Under these

rules, if taxpayer holds property for less than the long-term holding

period and sells short substantially identical property, any gain or

loss upon the closing of the short sale is considered short-term capital gain, and the holding period of the substantially identical property is generally considered to begin on the date of the closing of

the short sale. Also, if a taxpayer has held property for more than

the long-term holding period and sells short substantially identical

property, any loss on the closing of the short sale is considered a

long-term capital loss.

For purposes of these short sale rules, property includes stock,

securities, and commodity futures, but commodity futures are not

considered substantially identical if they call for delivery in different months.

For purposes of the short-sale rules relating to short-term

gains, the acquisition of an option to sell at a fixed price is treated

as a short sale, and the exercise or failure to exercise the option

is considered a closing of the short sale. 65

The Code also treats a taxpayer as recognizing gain where the

taxpayer holds appreciated property and enters into a short sale of

the same or substantially identical property, or enters into a contract to sell that same or substantially identical property (sec.

1259).

Wash sales

The wash-sale rule (sec. 1091) disallows certain losses from the

disposition of stock or securities if substantially identical stock or

securities (or an option or contract to acquire such property) are acquired by the taxpayer during the period beginning 30 days before

the date of sale and ending 30 days after such date of sale. Commodity futures are not treated as stock or securities for purposes

of this rule. The basis of the substantially identical stock or securities is adjusted to include the disallowed loss.

Similar rules apply to disallow any loss realized on the closing

of a short sale of stock or securities where substantially identical

stock or securities are sold (or a short sale, option or contract to

sell is entered into) during the applicable period before and after

the closing of the short sale.

Straddle rules

If a taxpayer realizes a loss with respect to a position in a

straddle, the taxpayer may recognize that loss for the taxable year

only to the extent that the loss exceeds the unrecognized gain (if

any) with respect to offsetting positions in the straddle (sec. 1092).

Disallowed losses are carried forward to the succeeding taxable

year and are subject to the same limitation in that taxable year.

A ‘‘straddle’’ generally refers to offsetting positions with respect

to actively traded personal property. Positions are offsetting if

there is a substantial diminution of risk of loss from holding one

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66 Reg. sec. 1.1092(b)–2T. 67Prop. Reg. sec. 1.1092(d)–2(c). 68 H.R. 4541 passed the House of Representatives on October 19, 2000. 69 Any securities futures contract which is not a section 1256 contract will be treated as a

‘‘security’’ for purposes of section 475. Thus, for example, traders in securities futures contracts

position by reason of holding one or more other positions in personal property. A ‘‘position’’ in personal property is an interest (including a futures or forward contract or option) in personal property.

The straddle rules provide that the Secretary of the Treasury

may issue regulations applying the short sale holding period rules

to positions in a straddle. Temporary regulations have been issued

setting forth the holding period rules applicable to positions in a

straddle. 66 To the extent these rules apply to a position, the rules

in section 1233(b) and (d) do not apply.

The straddle rules generally do not apply to positions in stock.

However the straddle rules apply if one of the positions is stock

and at least one of the offsetting positions is either (1) an option

with respect to stock or (2) a position with respect to substantially

similar or related property (other than stock) as defined in Treasury regulations. Under property Treasury regulations, a position

with respect to substantially similar or related property does not

include stock or a short sale of stock, but includes any other position with respect to substantially similar or related property. 67

If a straddle consists of both positions that are section 1256

contracts and positions that are not such contracts, the taxpayer

may designate the positions as a mixed straddle. Positions in a

mixed straddle are not subject to the mark-to-market rule of section 1256, but instead are subject to rules written under regulations to prevent the deferral of tax or the conversion of short-term

capital gain to long-term capital gain or long-term capital loss into

short-term capital loss.

Transactions by a corporation in its own stock

A corporation does not recognize gain or loss on the receipt of

money or other property in exchange for its own stock. Likewise,

a corporation does not recognize gain or loss when it redeems its

stock with cash, for less or more than it received when the stock

was issued. In addition, a corporation does not recognize gain or

loss on any lapse or acquisition or an option to buy or sell its stock

(sec. 1032).

HOUSE BILL

No provision. However, section 124(c) and (d) of H.R. 4541 68

contained the following provisions:

In general

Except in the case of dealer securities futures contracts described below, securities futures contracts are not treated as section 1256 contracts. Thus, holders of these contracts are not subject

to the mark-to-market rules of section 1256 and are not eligible for

60-percent long-term capital gain treatment under section 1256. Instead, gain or loss on these contracts will be recognized under the

general rules relating to the disposition of property. 69

1034

A securities futures contract is defined in section 3(a)(55)(A) of

the Securities Exchange Act of 1934, as added by the bill. In general, that definition provides that a securities futures contract

means a contract of sale for future delivery of a single security or

a narrow-based security index. A securities futures contract will

not be treated as a commodities futures contract for purposes of the

Code.

Treatment of gains and losses

The bill provides that any gain or loss from the sale or exchange of a securities futures contract (other than a dealer securities futures contract) will be considered as gain or loss from the

sale or exchange of property which has the same character as the

property to which the contract relates has (or would have) in the

hands of the taxpayer. Thus, if the underlying security would be

a capital asset in the taxpayer’s hands, then gain or loss from the

sale or exchange of the securities futures contract would be capital

gain or loss. The bill also provides that the termination of a securities futures contract which is a capital asset will be treated as a

sale or exchange of the contract.

Capital gain treatment will not apply to contracts which themselves are not capital assets because of the exceptions to the definition of a capital asset relating to inventory (sec. 1221(a)(1)) or

hedging (sec. 1221(a)(7)), or to any income derived in connection

with a contract which would otherwise be treated as ordinary income.

Except as otherwise provided in regulations under section

1092(b) (which treats certain losses from a straddle as long-term

capital losses) and section 1234B, as added by the bill, any capital

gain or loss from the sale or exchange of a securities futures contract to sell property (i.e., the short side of a securities futures contract) will be short-term capital gain or loss. In other words, a securities futures contract to sell property is treated as equivalent to

a short sale of the underlying property.

Wash sale rules

The bill clarifies that, under the ash sale rules, a contract or

option to acquire or sell stock or securities shall include options

and contracts that are (or may be) settled in cash or property other

than the stock or securities to which the contract relates. Thus, for

example, the acquisition, within the period set forth in section

1091, of a securities futures contract to acquire stock of a corporation could cause the taxpayer’s loss on the sale of stock in that corporation to be disallowed, notwithstanding that the contract may

be settled in cash.

Short sale rules

In applying the short sale rules, a securities futures contract

to acquire property will be treated in manner similar to the property itself. Thus, for example, the holding of a securities futures

contract to acquire property and the short sale of property which

is substantially identical to the property under the contract will reVerDate 11-MAY-2000 19:35 Dec 21, 2000 Jkt 067191 PO 00000 Frm 01038 Fmt 6601 Sfmt 6601 E:\HR\OC\HR1033.009 pfrm01 PsN: HR1033
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70 Because securities futures contracts are not treated as futures contracts with respect to

commodities, the rule providing that commodity futures are not substantially identical if they

call for delivery in different months does not apply.

sult in the application of the rules of section 1233(b).70 In addition,

as stated above, a securities futures contract to sell is treated in

a manner similar to a short sale of the property.

Straddle rules

Stock which is part of a straddle at least one of the offsetting

positions of which is a securities futures contract with respect to

the stock or substantially identical stock will be subject to the

straddle rules of section 1092. Treasury regulations under section

1092 applying the principles of the section 1233(b) and (d) short

sale rules to positions in a straddle will also apply.

For example, assume a taxpayer holds a long-term position in

actively traded stock (which is a capital asset in the taxpayer’s

hands) and enters into a securities futures contract to sell substantially identical stock (at a time when the position in the stock has

not appreciated in value so that the constructive sale rules of section 1259 do not apply). The taxpayer has a straddle. Treasury regulations prescribed under section 1092(b) applying the principles of

section 1233(d) will apply, so that any loss on closing the securities

futures contract will be a long-term capital loss.

Section 1032

A corporation will not recognize gain or loss on transactions in

securities futures contracts with respect to its own stock.

Holding period

If property is delivered in satisfaction of a securities futures

contract to acquire property (other than a contract to which section

1256 applies), the holding period for the property will include the

period the taxpayer held the contract, provided that the contract

was a capital asset in the hands of the taxpayer.

Regulations

The Secretary of the Treasury or his delegate has the authority

to prescribe regulations to provide for the proper treatment of securities futures contracts under provisions of the Internal Revenue

Code.

Dealers in securities futures contracts

In general, the bill provides that securities futures contracts

and options on such contracts are not section 1256 contracts. The

bill provides, however, that ‘‘dealer securities futures contracts’’

will be treated as section 1256 contracts.

The term ‘’dealer securities futures contract’’ means a securities futures contract which is entered into by a dealer in the normal course of his or her trade or business activity of dealing in

such contracts, and is traded on a qualified board of trade or exchange. The term also includes any option to enter into securities

futures contracts purchased or granted by a dealer in the normal

course of his or her trade or business activity of dealing in such options. The determination of who is to be treated as a dealer in secuVerDate 11-MAY-2000 19:35 Dec 21, 2000 Jkt 067191 PO 00000 Frm 01039 Fmt 6601 Sfmt 6601 E:\HR\OC\HR1033.009 pfrm01 PsN: HR1033
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rities futures contracts is to be made by the Secretary of the Treasury or his delegate not later than July 1, 2001. Accordingly, the bill

authorizes the Secretary to treat a person as a dealer in securities

futures contracts or options on such contracts if the Secretary determines that the person performs, with respect to such contracts

or options, functions similar to an equity options dealer, as defined

under present law.

The determination of who is a dealer in securities futures contracts is to be made in a manner that is appropriate to carry out

the purposes of the provision, which generally is to provide comparable tax treatment between dealers in securities futures contracts, on the one hand, and dealers in equity options, on the other.

Although traders in securities futures contracts (and options on

such contracts) may not have the same market-making obligations

as market makers or specialists in equity options, many traders are

expected to perform analogous functions to such market makers or

specialists by providing market liquidity for securities futures contracts (and options) even in the absence of a legal obligation to do

so. Accordingly, the absence of market-making obligations is not inconsistent with a determination that a class of traders are dealers

in securities futures contracts (and options), if the relevant factors,

including providing market liquidity for such contracts (and options), indicate that the market functions of the traders is comparable to that of equity options dealers.

As in the case of dealer equity options, gains and losses allocated to any limited partner or limited entrepreneur with respect

to a dealer securities futures contract will be treated as short-term

capital gain or loss.

Treatment of options under section 1256

The bill modifies the definition of ‘‘equity option’’ for purposes

of section 1256 to take into account changes made by the non-tax

provisions of the bill. Only options dealers are eligible for section

1256 with respect to equity options. The term ‘‘equity option’’ is

modified to include an option to buy or sell stock, or an option the

value of which is determined, directly or indirectly, by reference to

any stock, or any ‘‘narrow-based security index,’’ as defined in section 3(a)(55) of the Securities Exchange Act of 1934 (as modified by

the bill). An equity option includes an option with respect to a

group of stocks only if the group meets the requirements for a narrow-based security index.

As under present law, listed options that are not ‘‘equity options’’ are considered ‘‘nonequity options’’ to which section 1256 applies for all taxpayers. For example, options relating to broad-based

groups of stocks and broad based stock indexes will continue to be

treated as nonequity options under section 1256.

Definition of contract markets

The non-tax provisions of the bill designate certain new contract markets. The new contract markets will be contract markets

for purposes of the Code, except to the extent provided in Treasury

regulations.

1037

Effective Date

These provisions will take effect on the date of enactment of

the bill.

SENATE AMENDMENT

No provision.

CONFERENCE AGREEMENT

The conference agreement follows the tax provisions contained

in H.R. 4541.

TAX COMPLEXITY ANALYSIS

Section 4022(b) of the Internal Revenue Service Reform and

Restructuring Act of 1998 (the ‘‘IRS Reform Act’’) requires the Joint

Committee on Taxation (in consultation with the Internal Revenue

Service and the Department of the Treasury) to provide a tax complexity analysis. The complexity analysis is required for all legislation reported by the House Committee on Ways and Means, the

Senate Committee on Finance, or any committee of conference if

the legislation includes a provision that directly or indirectly

amends the Internal Revenue Code and has widespread applicability to individuals or small businesses.

The staff of the Joint Committee on Taxation has determined

that a complexity analysis is not required under section 4022(b) of

the IRS Reform Act because the bill contains no provisions that

amend the Internal Revenue Code and that have ‘‘widespread applicability’’ to individuals or small businesses.

1038

1039

1040

1041

NEW MARKETS VENTURE CAPITAL PROGRAM ACT OF 2000

The conference agreement would enact the provisions of H.R.

5663, as introduced on December 14, 2000. The text of that bill follows:

A BILL to provide for community renewal and new markets initiatives

Be it enacted by the Senate and House of Representatives of the

United States of America in Congress assembled,

SEC. 101. NEW MARKETS VENTURE CAPITAL PROGRAM.

(a) SHORT TITLE.—This section may be cited as the ‘‘New Markets Venture Capital Program Act of 2000’’.

(b) NEW MARKETS VENTURE CAPITAL PROGRAM.—Title III of the

Small Business Investment Act of 1958 (15 U.S.C. 681 et seq.) is

amended—

(1) in the heading for the title, by striking ‘‘SMALL BUSINESS INVESTMENT COMPANIES’’ and inserting ‘‘INVESTMENT DIVISION PROGRAMS’’;

(2) by inserting before the heading for section 301 the following:

‘‘PART A—SMALL BUSINESS INVESTMENT COMPANIES’’;

and

(3) by adding at the end the following:

‘‘PART B—NEW MARKETS VENTURE CAPITAL PROGRAM

‘‘SEC. 351. DEFINITIONS.

‘‘In this part, the following definitions apply:

‘‘(1) DEVELOPMENTAL VENTURE CAPITAL.—The term ‘developmental venture capital’ means capital in the form of equity

capital investments in businesses made with a primary objective of fostering economic development in low-income geographic

areas. For the purposes of this paragraph, the term ‘equity capital’ has the same meaning given such term in section 303(g)(4).

‘‘(2) LOW-INCOME INDIVIDUAL.—The term ‘low-income individual’ means an individual whose income (adjusted for family

size) does not exceed—

‘‘(A) for metropolitan areas, 80 percent of the area median income; and

‘‘(B) for nonmetropolitan areas, the greater of—

‘‘(i) 80 percent of the area median income; or

‘‘(ii) 80 percent of the statewide nonmetropolitan

area median income.

‘‘(3) LOW-INCOME GEOGRAPHIC AREA—the term ‘low-income

geographic area’ means—

‘‘(A) any population census tract (or in the case of an

area that is not tracted for population census tracts, the

equivalent county division, as defined by the Bureau of the

Census of the Department of Commerce for purposes of defining poverty areas), if—

‘‘(i) the poverty rate for that census tract is not less

than 20 percent;

‘‘(ii) in the case of a tract—

1042

‘‘(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

1043

‘‘(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.

1044

‘‘(b) APPLICATION.—To participate, as a New Markets Venture

Capital company, in the program established under this part a company meeting the eligibility requirements set forth in subsection (a)

shall submit an application to the Administrator that includes—

‘‘(1) a business plan describing how the company intends to

make successful developmental venture capital investments in

identified low-income geographic areas;

‘‘(2) information regarding the community development finance or relevant venture capital qualifications and general

reputation of the company’s management;

‘‘(3) a description of how the company intends to work with

community organizations and to seek to address the unmet capital needs of the communities served;

‘‘(4) a proposal describing how the company intends to use

the grant funds provided under this part to provide operational

assistance to smaller enterprises financed by the company, including information regarding whether the company intends to

use licensed professionals, when necessary, on the company’s

staff or from an outside entity;

‘‘(5) with respect to binding commitments to be made to the

company under this part, an estimate of the ratio of cash to inkind 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.

1045

‘‘(G) The strength of the company’s proposal to provide

operational assistance under this part as the proposal relates to the ability of the applicant to meet applicable cash

requirements and properly utilize in-kind contributions, including the use of resources for the services of licensed professionals, when necessary, whether provided by persons on

the company’s staff or by persons outside of the company.

‘‘(H) Any other factors deemed appropriate by the Administrator.

‘‘(3) NATIONWIDE DISTRIBUTION.—The Administrator shall

select companies under paragraph (1) in such a way that promotes investment nationwide.

‘‘(d) REQUIREMENTS TO BE MET FOR FINAL APPROVAL.—The

Administrator shall grant each conditionally approved company a

period of time, not to exceed 2 years, to satisfy the following requirements:

‘‘(1) CAPITAL REQUIREMENT.—Each conditionally approved company shall raise not less than $5,000,000 of private capital

or binding capital commitments from one or more investors

(other than agencies or departments of the Federal Government)

who met criteria established by the Administrator.

‘‘(2) NONADMINISTRATION RESOURCES FOR OPERATIONAL AS- SISTANCE.—

‘‘(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

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not less than 30 percent of the total amount of capital

and commitments raised under paragraph (1).

‘‘(B) EXCEPTION.—The Administrator may, in the discretion of the Administrator and based upon a showing of

special circumstances and good cause, consider an applicant to have satisfied the requirements of subparagraph (A)

if the applicant has—

‘‘(i) a viable plan that reasonably projects the capacity of the applicant to raise the amount (in cash or

in-kind) required under subparagraph (A); and

‘‘(ii) binding commitments in an amount equal to

not less than 20 percent of the total amount required

under paragraph (A).

‘‘(C) LIMITATION.—In order to comply with the requirements of subparagraphs (A) and (B), the total amount of a

company’s in-kind contributions may not exceed 50 percent

of the company’s total contributions.

‘‘(e) FINAL APPROVAL; DESIGNATION.—The Administrator shall,

with respect to each applicant conditionally approved to operate as

a New Markets Venture Capital company under subsection (c),

either—

‘‘(1) grant final approval to the applicant to operate as a

New Markets Venture Capital company under this part and

designate the applicant as such a company, if the applicant—

‘‘(A) satisfies the requirements of subsection (d) on or

before the expiration of the time period described in that

subsection; and

‘‘(B) enters into a participation agreement with the Administrator; or

‘‘(2) if the applicant fails to satisfy the requirements of subsection (d) on or before the expiration of the time period described in that subsection, revoke the conditional approval

granted under that subsection.

‘‘SEC. 355. DEBENTURES.

‘‘(a) IN GENERAL.—The Administrator may guarantee the timely

payment of principal and interest, as scheduled, on debentures

issued by any New Markets Venture Capital company.

‘‘(b) TERMS AND CONDITIONS.—The Administrator may make

guarantees under this section on such terms and conditions as it

deems appropriate, except that the term of any debenture guaranteed under this section shall not exceed 15 years.

‘‘(c) FULL FAITH AND CREDIT OF THE UNITED STATES.—The full

faith and credit of the United States is pledged to pay all amounts

that may be required to be paid under any guarantee under this

part.

‘‘(d) MAXIMUM GUARANTEE.—

‘‘(1) IN GENERAL.—Under this section, the Administrator

may guarantee the debentures issued by a New Markets Venture Capital company only to the extent that the total face

amount of outstanding guaranteed debentures of such company

does not exceed 150 percent of the private capital of the company, as determined by the Administrator.

‘‘(2) TREATMENT OF CERTAIN FEDERAL FUNDS.—For the purposes of paragraph (1), private capital shall include capital that

1047

is considered to be Federal funds, if such capital is contributed

by an investor other than an agency or department of the Federal Government.

‘‘SEC. 356. ISSUANCE AND GUARANTEE OF TRUST CERTIFICATES.

‘‘(a) ISSUANCE.—The Administrator may issue trust certificates

representing ownership of all or a fractional part of debentures

issued by a New Markets Venture Capital company and guaranteed

by the Administrator under this part, if such certificates are based

on and backed by a trust or pool approved by the Administrator

and composed solely of guaranteed debentures.

‘‘(b) GUARANTEE.—

‘‘(1) IN GENERAL.—The Administrator may, under such

terms and conditions as it deems appropriate, guarantee the

timely payment of the principal of and interest on trust certificates issued by the Administrator or its agents for purposes of

this section.

‘‘(2) LIMITATION.—Each guarantee under this subsection

shall be limited to the extent of principal and interest on the

guaranteed debentures that compose the trust or pool.

‘‘(3) PREPAYMENT OR DEFAULT.—In the event that a debenture in a trust or pool is prepaid, or in the event of default of

such a debenture, the guarantee of timely payment of principal

and interest on the trust certificates shall be reduced in proportion to the amount of principal and interest such prepaid debenture represents in the trust or pool. Interest on prepaid or

defaulted debentures shall accrue and be guaranteed by the Administrator only through the date of payment of the guarantee.

At any time during its term, a trust certificate may be called

for redemption due to prepayment or default of all debentures.

‘‘(c) FULL FAITH AND CREDIT OF THE UNITED STATES.—The full

faith and credit of the United States is pledged to pay all amounts

that may be required to be paid under any guarantee of a trust certificate issued by the Administrator or its agents under this section.

‘‘(d) FEES.—The Administrator shall not collect a fee for any

guarantee of a trust certificate under this section, but any agent of

the Administrator may collect a fee approved by the Administrator

for the functions described in subsection (f)(2).

‘‘(e) SUBROGATION AND OWNERSHIP RIGHTS.—

‘‘(1) SUBROGATION.—In the event the Administrator pays a

claim under a guarantee issued under this section, it shall be

subrogated fully to the rights satisfied by such payment.

‘‘(2) OWNERSHIP RIGHTS.—No Federal, State, or local law

shall preclude or limit the exercise by the Administrator of its

ownership rights in the debentures residing in a trust or pool

against which trust certificates are issued under this section.

‘‘(f) MANAGEMENT AND ADMINISTRATION.—

‘‘(1) REGISTRATION.—The Administrator may provide for a

central registration of all trust certificates issued under this section.

‘‘(2) CONTRACTING OF FUNCTIONS.—

‘‘(A) IN GENERAL.—The Administrator may contract

with an agent or agents to carry out on behalf of the Administrator the pooling and the central registration funcVerDate 11-MAY-2000 19:35 Dec 21, 2000 Jkt 067191 PO 00000 Frm 01051 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.009 pfrm01 PsN: HR1033
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tions provided for in this section including, notwithstanding any other provision of law—

‘‘(i) maintenance, on behalf of and under the direction of the Administrator, of such commercial bank accounts or investments in obligations of the United

States as may be necessary to facilitate the creation of

trusts or pools backed by debentures guaranteed under

this part; and

‘‘(ii) the issuance of trust certificates to facilitate

the creation of such trusts or pools.

‘‘(B) FIDELITY BOND OR INSURANCE REQUIREMENT.—

Any agent performing functions on behalf of the Administrator under this paragraph shall provide a fidelity bond or

insurance in such amounts as the Administrator determines to be necessary to fully protect the interests of the

United States.

‘‘(3) REGULATION OF BROKERS AND DEALERS.—The Administrator may regulate brokers and dealers in trust certificates

issued under this section.

‘‘(4) ELECTRONIC REGISTRATION.—Nothing in this subsection may be construed to prohibit the use of a book-entry or

other electronic form of registration for trust certificates issued

under this section.

‘‘SEC. 357. FEES.

‘‘Except as provided in section 356(d), the Administrator may

charge such fees as it deems appropriate with respect to any guarantee or grant issued under this part.

‘‘SEC. 358. OPERATIONAL ASSISTANCE GRANTS.

‘‘(a) IN GENERAL.—

‘‘(1) AUTHORITY.—In accordance with this section, the Administrator may make grants to New Markets Venture Capital

companies and to other entities, as authorized by this part, to

provide operational assistance to smaller enterprises financed,

or expected to be financed, by such companies or other entities.

‘‘(2) TERMS.—Grants made under this subsection shall be

made over a multiyear period not to exceed 10 years, under

such other terms as the Administrator may require.

‘‘(3) GRANTS TO SPECIALIZED SMALL BUSINESS INVESTMENT

COMPANIES.—

‘‘(A) AUTHORITY.—In accordance with this section, the

Administrator may make grants to specialized small business investment companies to provide operational assistance to smaller enterprises financed, or expected to be financed, by such companies after the effective date of the

New Markets Venture Capital Program Act of 2000.

‘‘(B) USE OF FUNDS.—The proceeds of a grant made

under this paragraph may be used by the company receiving such grant only to provide operational assistance in

connection with an equity investment (made with capital

raised after the effective date of the New Markets Venture

Capital Program Act of 2000) in a business located in a

low-income geographic area.

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‘‘(C) SUBMISSION OF PLANS.—A specialized small business investment company shall be eligible for a grant under

this section only if the company submits to the Administrator, in such form and manner as the Administrator may

require, a plan for use of the grant.

‘‘(4) GRANT AMOUNT.—

‘‘(A) NEW MARKETS VENTURE CAPITAL COMPANIES.—The

amount of a grant made under this subsection to a New

Markets Venture Capital company shall be equal to the resources (in cash or in kind) raised by the company under

section 354(d)(2).

‘‘(B) OTHER ENTITIES.—The amount of a grant made

under this subsection to any entity other than a New Markets Venture Capital company shall be equal to the resources (in cash or in kind) raised by the entity in accordance with the requirements applicable to New Markets Venture Capital companies set forth in section 354(d)(2).

‘‘(5) PRO RATA REDUCTIONS.—If the amount made available

to carry out this section is insufficient for the Administrator to

provide grants in the amounts provided for in paragraph (4),

the Administrator shall make pro rata reductions in the

amounts otherwise payable to each company and entity under

such paragraph.

‘‘(b) SUPPLEMENTAL GRANTS.—

‘‘(1) IN GENERAL.—The Administrator may make supplemental grants to New Markets Venture Capital companies and

to other entities, as authorized by this part under such terms

as the Administrator may require, to provide additional operational assistance to smaller enterprises financed, or expected to

be financed, by the companies.

‘‘(2) MATCHING REQUIREMENT.—The Administrator may require, as a condition of any supplemental grant made under

this subsection, that the company or entity receiving the grant

provide from resources (in cash or in kind), other then those

provided by the Administrator, a matching contribution equal

to the amount of the supplemental grant.

‘‘(c) LIMITATION.—None of the assistance made available under

this section may be used for any overhead or general and administrative expense of a New Markets Venture Capital company or a specialized small business investment company.

‘‘SEC. 359. BANK PARTICIPATION.

‘‘(a) IN GENERAL.—Except as provided in subsection (b), any national bank, any member bank of the Federal Reserve System, and

(to the extent permitted under applicable State law) any insured

bank that is not a member of such system, may invest in any New

Markets Venture Capital company, or in any entity established to

invest solely in New Markets Venture Capital companies.

‘‘(b) LIMITATION.—No bank described in subsection (a) may

make investments described in such subsection that are greater than

5 percent of the capital and surplus of the bank.

‘‘SEC. 360. FEDERAL FINANCING BANK.

‘‘Section 318 shall not apply to any debenture issued by a New

Markets Venture Capital company under this part.

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‘‘SEC. 361. REPORTING REQUIREMENTS.

‘‘Each New Markets Venture Capital company that participates

in the program established under this part shall provide to the Administrator such information as the Administrator may require,

including—

‘‘(1) information related to the measurement criteria that

the company proposed in its program application; and

‘‘(2) in each case in which the company under this part

makes an investment in, or a loan or grant to, a business that

is not located in a low-income geographic area, a report on the

number and percentage of employees of the business who reside

in such areas.

‘‘SEC. 362. EXAMINATIONS.

‘‘(a) IN GENERAL.—Each New Markets Venture Capital company that participates in the program established under this part

shall be subject to examinations made at the direction of the Investment Division of the Small Business Administration in accordance

with this section.

‘‘(b) ASSISTANCE OF PRIVATE SECTOR ENTITIES.—Examinations

under this section may be conducted with the assistance of a private

sector entity that has both the qualifications and the expertise necessary to conduct such examinations.

‘‘(c) COSTS.—

‘‘(1) ASSESSMENT.—

‘‘(A) IN GENERAL.—The Administrator may assess the

cost of examinations under this section, including compensation of the examiners, against the company examined.

‘‘(B) PAYMENT.—Any company against which the Administrator assesses costs under this paragraph shall pay

such costs.

‘‘(2)DEPOSIT OF FUNDS.—Funds collected under this section

shall be deposited in the account for salaries and expenses of

the Small Business Administration.

‘‘SEC. 363. INJUNCTIONS AND OTHER ORDERS.

‘‘(a) IN GENERAL.—Whenever, in the judgment of the Administrator, a New Markets Venture Capital company or any other person

has engaged or is about to engage in any acts or practices which

constitute or will constitute a violation of any provision of this Act,

or of any rule or regulation under this Act, or of any order issued

under this Act, the Administrator may make application to the

proper district court of the United States or a United States court

of any place subject to the jurisdiction of the United States for an

order enjoining such acts or practices, or for an order enforcing

compliance with such provision, rule, regulation, or order, and such

courts shall have jurisdiction of such actions and, upon a showing

by the Administrator that such New Markets Venture Capital company or other person has engaged or is about to engage in any such

acts or practices, a permanent or temporary injunction, restraining

order, or other order, shall be granted without bond.

‘‘(b) JURISDICTION.—In any proceeding under subsection (a), the

court as a court of equity may, to such extent as it deems necessary,

take exclusive jurisdiction of the New Market Venture Capital company and the assets thereof, wherever located, and the court shall

1051

have jurisdiction in any such proceeding to appoint a trustee or receiver to hold or administer under the direction of the court the assets so possessed.

‘‘(c) ADMINISTRATOR AS TRUSTEE OR RECEIVER.—

‘‘(1) AUTHORITY.—The Administrator may act as trustee or

receiver of a New Markets Venture Capital company.

‘‘(2) APPOINTMENT.—Upon request of the Administrator, the

court may appoint the Administrator to act as a trustee or receiver of a New Markets Venture Capital company unless the

court deems such appointment inequitable or otherwise inappropriate by reason of the special circumstances involved.

‘‘SEC. 364. ADDITIONAL PENALTIES FOR NONCOMPLIANCE.

‘‘(a) IN GENERAL.—With respect to any New Markets Venture

Capital company that violates or fails to comply with any of the provisions of this Act, of any regulation issued under this Act, or of any

participation agreement entered into under this Act, the Administrator may in accordance with this section—

‘‘(1) void the participation agreement between the Administrator and the company; and

‘‘(2) cause the company to forfeit all of the rights and privileges derived by the company from this Act.

‘‘(b) ADJUDICATION OF NONCOMPLIANCE.—

‘‘(1) IN GENERAL.—Before the Administrator may cause a

New Markets Venture Capital company to forfeit rights or privileges under subsection (a), a court of the United States of competent jurisdiction must find that the company committed a violation, or failed to comply, in a cause of action brought for that

purpose in the district, territory, or other place subject to the jurisdiction of the United States, in which the principal office of

the company is located.

‘‘(2) PARTIES AUTHORIZED TO FILE CAUSES OF ACTION.—

Each cause of action brought by the United States under this

subsection shall be brought by the Administrator or by the Attorney General.

‘‘SEC. 365. UNLAWFUL ACTS AND OMISSIONS; BREACH OF FIDUCIARY

DUTY.

‘‘(a) PARTIES DEEMED TO COMMIT A VIOLATION.—Whenever any

New Markets Venture Capital company violates any provision of

this Act, of a regulation issued under this Act, or of a participation

agreement entered into under this Act, by reason of its failure to

comply with its terms or by reason of its engaging in any act or

practice that constitutes or will constitute a violation thereof, such

violation shall also be deemed to be a violation and an unlawful act

committed by any person who, directly or indirectly, authorizes, orders, participates in, causes, brings about, counsels, aids, or abets

in the commission of any acts, practices, or transactions that constitute or will constitute, in whole or in part, such violation.

‘‘(b) FIDUCIARY DUTIES.—It shall be unlawful for any officer, director, employee, agent, or other participant in the management or

conduct of the affairs of a New Markets Venture Capital company

to engage in any act or practice, or to omit any act or practice, in

breach of the person’s fiduciary duty as such officer, director, employee, agent, or participant if, as a result thereof, the company sufVerDate 11-MAY-2000 19:35 Dec 21, 2000 Jkt 067191 PO 00000 Frm 01055 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.009 pfrm01 PsN: HR1033
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fers or is in imminent danger of suffering financial loss or other

damage.

‘‘(c) UNLAWFUL ACTS.—Except with the written consent of the

Administrator, it shall be unlawful—

‘‘(1) for any person to take office as an officer, director, or

employee of any New Markets Venture Capital company, or to

become an agent or participant in the conduct of the affairs or

management of such a company, if the person—

‘‘(A) has been convicted of a felony, or any other criminal offense involving dishonesty or breach of trust, or

‘‘(B) has been found civilly liable in damages, or has

been permanently or temporarily enjoined by an order,

judgment, or decree of a court of competent jurisdiction, by

reason of any act or practice involving fraud, or breach of

trust; and

‘‘(2) for any person continue to serve in any of the capacities

described in paragraph (1), if—

‘‘(A) the person is convicted of a felony, or any other

criminal offense involving dishonesty or breach of trust, or

‘‘(B) the person is found civilly liable in damages, or is

permanently or temporarily enjoined by an order, judgment, or decree of a court of competent jurisdiction, by reason of any act or practice involving fraud or breach of

trust.

‘‘SEC. 366. REMOVAL OR SUSPENSION OF DIRECTORS OR OFFICERS.

‘‘Using the procedures for removing or suspending a director or

an officer of a licensee set forth in section 313 (to the extent such

procedures are not inconsistent with the requirements of this part),

the Administrator may remove or suspend any director or officer of

any New Markets Venture Capital company.

‘‘SEC. 367. REGULATIONS.

‘‘The Administrator may issue such regulations as it deems necessary to carry out the provisions of this part in accordance with its

purposes.

‘‘SEC. 368. AUTHORIZATIONS OF APPROPRIATIONS.

‘‘(a) IN GENERAL.—There are authorized to be appropriated for

fiscal years 2001 through 2006, to remain available until expended,

the following sums:

‘‘(1) Such subsidy budget authority as may be necessary to

guarantee $150,000,000 of debentures under this part.

‘‘(2) $30,000,000 to make grants under this part.

‘‘(b) FUNDS COLLECTED FOR EXAMINATIONS.—Funds deposited

under section 362(c)(2) are authorized to be appropriated only for

the costs of examinations under section 362 and for the costs of

other oversight activities with respect to the program established

under this part.’’

(c) CONFORMING AMENDMENT.—Section 20(e)(1)(C) of the Small

Business Act (15 U.S.C. 631 note) is amended by inserting ‘‘part A

of ’’ before ‘‘title III’’.

(d) CALCULATION OF MAXIMUM AMOUNT OF SBIC LEVERAGE.—

(1) MAXIMUM LEVERAGE.—Section 303(b)(2) of the Small

Business Investment Act of 1958 (15 U.S.C. 683(b)(2)) is

amended to read as follows:

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‘‘(2) MAXIMUM LEVERAGE.— ‘‘(A) IN GENERAL.—After March 31, 1993, the maximum amount of outstanding leverage made available to a

company licensed under section 301(c) of this Act shall be

determined by the amount of such company’s private

capital—

‘‘(i) if the company has private capital of not more than $15,000,000, the total amount of leverage shall

not exceed 300 percent of private capital;

‘‘(ii) if the company has private capital of more than $15,000,000 but not more than $30,000,000, the

total amount of leverage shall not exceed $45,000,000

plus 200 percent of the amount of private capital over

$15,000,000; and

‘‘(iii) if the company has private capital of more than $30,000,000, the total amount of leverage shall

not exceed $75,000,000 plus 100 percent of the amount

of private capital over $30,000,000 but not to exceed an

additional $15,000,000.

‘‘(B) ADJUSTMENTS.— ‘‘(i) IN GENERAL.—The dollar amounts in clauses

(i), (ii), and (iii) of subparagraph (A) shall be adjusted

annually to reflect increases in the Consumer Price

Index established by the Bureau of Labor Statistics of

the Department of Labor.

‘‘(ii) INITIAL ADJUSTMENTS.—The initial adjustments made under this subparagraph after the date of

the enactment of the Small Business Reauthorization

Act of 1937 shall reflect only increases from March 31,

1993.

‘‘(C) INVESTMENTS IN LOW-INCOME GEOGRAPHIC

AREAS.—In calculating the outstanding leverage of a company for the purposes of subparagraph (A), the Administrator shall not include the amount of the cost basis of any

equity investment made by the company in a smaller enterprise located in a low-income geographic area (as defined

in section 351), to the extent that the total of such amounts

does not exceed 50 percent of the company’s private capital.’’.

(2) MAXIMUM AGGREGATE LEVERAGE.—Section 303(b)(4) of

the Small Business Investment Act of 1958 (15 U.S.C. 683(b)(4))

is amended by adding at the end the following new subparagraph:

‘‘(D) INVESTMENTS IN LOW-INCOME GEOGRAPHIC

AREAS.—In calculating the aggregate outstanding leverage

of a company for the purposes of subparagraph (A), the Administrator shall not include the amount of the cost basis

of any equity investment made by the company in a smaller

enterprise located in a low-income geographic area (as defined in section 351), to the extent that the total of such

amounts does not exceed 50 percent of the company’s private capital.’’

(e) BANKRUPTCY EXEMPTION FOR NEW MARKETS VENTURE CAPITAL COMPANIES.—Section 109(b)(2) of title 11, United States Code,

1054

is amended by inserting ‘‘a New Markets Venture Capital company

as defined in section 351 of the Small Business Investment Act of

1958,’’ after ‘‘homestead association,’’.

(f) FEDERAL SAVINGS ASSOCIATIONS.—Section 5(c)(4) of the

Home Owners’ Loan Act (12 U.S.C. 1464(c)(4)) is amended by adding at the end the following:

‘‘(F) NEW MARKETS VENTURE CAPITAL COMPANIES.—A

Federal savings association may invest in stock, obligations, or other securities of any New Markets Venture Capital company as defined in section 351 of the Small Business Investment Act of 1958, except that a Federal savings

association may not make any investment under this subparagraph if its aggregate outstanding investment under

this subparagraph would exceed 5 percent of the capital

and surplus of such savings association.’’.

SEC. 102. BUSINESSLINC GRANTS AND COOPERATIVE AGREEMENTS.

Section 8 of the Small Business Act (15 U.S.C. 637) is amended

by adding at the end the following:

‘‘(n) BUSINESS GRANTS AND COOPERATIVE AGREEMENTS.—

‘‘(1) IN GENERAL.—In accordance with this subsection, the

Administrator may make grants to and enter into cooperative

agreements with any coalition of private entities, public entities,

or any combination of private and public entities—

‘‘(A) to expand business-to-business relationships between large and small businesses; and

‘‘(B) to provide businesses, directly or indirectly, with

online information and a database of companies that are

interested in mentor-protege programs or community-based,

statewide, or local business development programs.

‘‘(2) MATCHING REQUIREMENT.—Subject to subparagraph

(B), the Administrator may make a grant to a coalition under

paragraph (1) only if the coalition provides for activities described in paragraph (1)(A) or (1)(B) an amount, either in kind

or in cash, equal to the grant amount.

‘‘(3) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to carry out this subsection $6,600,000,

to remain available until expended, for each of fiscal years 2001

through 2006.’’.

Small Business Reauthorization Act of 2000

The conference agreement would enact the provisions of H.R.

5667, as introduced on December 15, 2000. The text of that bill follows:

A Bill To provide for reauthorization of small business loan and other programs, and

for other purposes

Be it enacted by the Senate and House of Representatives of the

United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) SHORT TITLE.—This Act may be cited as the ‘‘Small Business Reauthorization Act of 2000’’.

1055

(b) TABLE OF CONTENTS.—The table of contents for this Act is

as follows:

Sec. 1. Short title; table of contents.

TITLE I—SMALL BUSINESS INNOVATION RESEARCH PROGRAM

Sec. 101. Short title.

Sec. 102. Findings.

Sec. 103. Extension of SBIR program.

Sec. 104. Annual report.

Sec. 105. Third phase assistance.

Sec. 106. Report on programs for annual performance plan.

Sec. 107. Output and outcome data.

Sec. 108. National Research Council reports.

Sec. 109. Federal agency expenditures for the SBIR program.

Sec. 110. Policy directive modifications.

Sec. 111. Federal and State technology partnership program.

Sec. 112. Mentoring networks.

Sec. 113. Simplified reporting requirements.

Sec. 114. Rural outreach program extension.

TITLE II—BUSINESS LOAN PROGRAMS

Sec. 201. Short title.

Sec. 202. Levels of participation.

Sec. 203. Loan amounts.

Sec. 204. Interest on defaulted loans.

Sec. 205. Prepayment of loans.

Sec. 206. Guarantee fees.

Sec. 207. Lease terms.

Sec. 208. Appraisals for loans secured by real property.

Sec. 209. Sale of guaranteed loans made for export purposes.

Sec. 210. Microloan program.

TITLE III—CERTIFIED DEVELOPMENT COMPANY PROGRAM

Sec. 301. Short title.

Sec. 302. Women-owned businesses.

Sec. 303. Maximum debenture size.

Sec. 304. Fees.

Sec. 305. Premier certified lenders program.

Sec. 306. Sale of certain defaulted loans.

Sec. 307. Loan liquidation.

TITLE IV—CORRECTIONS TO THE SMALL BUSINESS INVESTMENT ACT OF

1958

Sec. 401. Short title.

Sec. 402. Definitions.

Sec. 403. Investment in small business investment companies.

Sec. 404. Subsidy fees.

Sec. 405. Distributions.

Sec. 406. Conforming amendment.

TITLE V—REAUTHORIZATION OF SMALL BUSINESS PROGRAMS

Sec. 501. Short title.

Sec. 502. Reauthorization of small business programs.

Sec. 503. Additional reauthorizations.

Sec. 504. Cosponsorship.

TITLE VI—HUBZONE PROGRAM

Subtitle A—HUBZones in Native America

Sec. 601. Short title.

Sec. 602. HUBZone small business concern.

Sec. 603. Qualified HUBZone small business concern.

Sec. 604. Other definitions.

Subtitle B—Other HUBZone Provisions

Sec. 611. Definitions.

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Sec. 612. Eligible contracts.

Sec. 613. HUBZone redesignated areas.

Sec. 614. Community development.

Sec. 615. Reference corrections.

TITLE VII—NATIONAL WOMEN’S BUSINESS COUNCIL REAUTHORIZATION

Sec. 701. Short title.

Sec. 702. Membership of the Council.

Sec. 703. Repeal of procurement project.

Sec. 704. Studies and other research.

Sec. 705. Authorization of appropriations.

TITLE VIII—MISCELLANEOUS PROVISIONS

Sec. 801. Loan application processing.

Sec. 802. Application of ownership requirements.

Sec. 803. Subcontracting preference for veterans.

Sec. 804. Small Business Development Center Program funding.

Sec. 805. Surety bonds.

Sec. 806. Size standards.

Sec. 807. Native Hawaiian organizations under section 8(a).

Sec. 808. National Veterans Business Development Corporation correction.

Sec. 809. Private sector resources for SCORE.

Sec. 810. Contract data collection.

Sec. 811. Procurement program for women-owned small business concerns.

TITLE I—SMALL BUSINESS INNOVATION RESEARCH

PROGRAM

SECTION 101. SHORT TITLE.

(a) SHORT TITLE.—This title may be cited as the ‘‘Small Business Innovation Research Program Reauthorization Act of 2000’’.

SEC. 102. FINDINGS.

Congress finds that—

(1) the small business innovation research program established under the Small Business Innovation Development Act of

1982, and reauthorized by the Small Business Research and

Development Enhancement Act of 1992 (in this title referred to

as the ‘‘SBIR program’’) is highly successful in involving small

businesses in federally funded research and development;

(2) the SBIR program made the cost-effective and unique

research and development capabilities possessed by the small

businesses of the Nation available to Federal agencies and departments;

(3) the innovative goods and services developed by small

businesses that participated in the SBIR program have produced innovations of critical importance in a wide variety of

high-technology fields, including biology, medicine, education,

and defense;

(4) the SBIR program is a catalyst in the promotion of research and development, the commercialization of innovative

technology, the development of new products and services, and

the continued excellence of this Nation’s high-technology industries; and

(5) the continuation of the SBIR program will provide expanded opportunities for one of the Nation’s vital resources, its

small businesses, will foster invention, research, and technology, will create jobs, and will increase this Nation’s competitiveness in international markets.

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SEC. 103. EXTENSION OF SBIR PROGRAM.

Section 9(m) of the Small Business Act (15 U.S.C. 638(m)) is

amended to read as follows:

‘‘(m) TERMINATION.—The authorization to carry out the Small

Business Innovation Research Program established under this section shall terminate on September 30, 2008.’’.

SEC. 104. ANNUAL REPORT.

Section 9(b)(7) of the Small Business Act (15 U.S.C. 638(b)(7))

is amended by striking ‘‘and the Committee on Small Business of

the House of Representatives’’ and inserting ‘‘, and to the Committee

on Science and the Committee on Small Business of the House of

Representatives,’’.

SEC. 105. THIRD PHASE ASSISTANCE.

Section 9(e)(4)(C)(i) of the Small Business Act (15 U.S.C.

638(e)(4)(C)(i)) is amended by striking ‘‘; and’’ and inserting ‘‘; or’’.

SEC. 106. REPORT ON PROGRAMS FOR ANNUAL PERFORMANCE PLAN.

Section 9(g) of the Small Business Act (15 U.S.C. 638(g)) is

amended—

(1) in paragraph (7), by striking ‘‘and’’ at the end;

(2) in paragraph (8), by striking the period at the end and

inserting a semicolon; and

(3) by adding at the end the following:

‘‘(9) include, as part of its annual performance plan as required by subsections (a) and (b) of section 1115 of title 31,

United States Code, a section on its SBIR program, and shall

submit such section to the Committee on Small Business of the

Senate, and the Committee on Science and the Committee on

Small Business of the House of Representatives; and’’.

SEC. 107. OUTPUT AND OUTCOME DATA.

(a) COLLECTION.—Section 9(g) of the Small Business Act (15

U.S.C. 638(g)), as amended by section 106 of this Act, is further

amended by adding at the end the following:

‘‘(10) collect, and maintain in a common format in accordance with subsection (v), such information from awardees as is

necessary to assess the SBIR program, including information

necessary to maintain the database described in subsection

(k).’’.

(b) REPORT TO CONGRESS.—Section 9(b)(7) of the Small Business Act (15 U.S.C. 638(b)(7)), as amended by section 104 of this

Act, is further amended by inserting before the period at the end ‘‘,

including the data on output and outcomes collected pursuant to

subsections (g)(10) and (o)(9), and a description of the extent to

which Federal agencies are providing in a timely manner information needed to maintain the database described in subsection (k)’’.

(c) DATABASE.—Section 9(k) of the Small Business Act (15

U.S.C. 638(k)) is amended to read as follows:

‘‘(k) DATABASE.—

‘‘(1) PUBLIC DATABASE.—Not later than 180 days after the

date of enactment of the Small Business Innovation Research

Program Reauthorization Act of 2000, the Administrator shall

develop, maintain, and make available to the public a searchable, up-to-date, electronic database that includes—

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‘‘(A) the name, size, location, and an identifying number assigned by the Administrator, of each small business

concern that has received a first phase or second phase

SBIR award from a Federal agency;

‘‘(B) a description of each first phase or second phase

SBIR award received by that small business concern,

including—

‘‘(i) an abstract of the project funded by the award,

excluding any proprietary information so identified by

the small business concern;

‘‘(ii) the Federal agency making the award; and

‘‘(iii) the date and amount of the award;

‘‘(C) an identification of any business concern or subsidiary established for the commercial application of a

product or service for which an SBIR award is made; and

‘‘(D) information regarding mentors and Mentoring

Networks, as required by section 35(d).

‘‘(2) GOVERNMENT DATABASE.—Not later than 180 days

after the date of enactment of the Small Business Innovation

Research Program Reauthorization Act of 2000, the Administrator, in consultation with Federal agencies required to have

an SBIR program pursuant to subsection (f)(1), shall develop

and maintain a database to be used solely for SBIR program

evaluation that—

‘‘(A) contains for each second phase award made by a

Federal agency—

‘‘(i) information collected in accordance with paragraph (3) on revenue from the sale of new products or

services resulting from the research conducted under

the award;

‘‘(ii) information collected in accordance with paragraph (3) on additional investment from any source,

other than first phase or second phase SBIR or STTR

awards, to further the research and development conducted under the award; and

‘‘(iii) any other information received in connection

with the award that the Administrator, in conjunction

with the SBIR program managers of Federal agencies,

considers relevant and appropriate;

‘‘(B) includes any narrative information that a small

business concern receiving a second phase award voluntarily submits to further describe the outputs and outcomes

of its awards;

‘‘(C) includes for each applicant for a first phase or second phase award that does not receive such an award—

‘‘(i) the name, size, and location, and an identifying number assigned by the Administration;

‘‘(ii) an abstract of the project; and

‘‘(iii) the Federal agency to which the application

was made;

‘‘(D) includes any other data collected by or available

to any Federal agency that such agency considers may be

useful for SBIR program evaluation; and

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‘‘(E) is available for use solely for program evaluation

purposes by the Federal Government or, in accordance with

policy directives issued by the Administration, by other authorized persons who are subject to a use and nondisclosure

agreement with the Federal Government covering the use of

the database.

‘‘(3) UPDATING INFORMATION FOR DATABASE.— ‘‘(A) IN GENERAL.—A small business concern applying

for a second phase award under this section shall be required to update information in the database established

under this subsection for any prior second phase award received by that small business concern. In complying with

this paragraph, a small business concern may apportion

sales or additional investment information relating to more

than one second phase award among those awards, if it

notes the apportionment for each award.

‘‘(B) ANNUAL UPDATES UPON TERMINATION.—A small

business concern receiving a second phase award under

this section shall—

‘‘(i) update information in the database concerning

that award at the termination of the award period;

and

‘‘(ii) be requested to voluntarily update such information annually thereafter for a period of 5 years.

‘‘(4) PROTECTION OF INFORMATION.—Information provided

under paragraph (2) shall be considered privileged and confidential and not subject to disclosure pursuant to section 552

of title 5, United States Code.

‘‘(5) RULE OF CONSTRUCTION.—Inclusion of information in

the database under this subsection shall not be considered to be

publication for purposes of subsection (a) or (b) of section 102

of title 35, United States Code.’’.

SEC. 108. NATIONAL RESEARCH COUNCIL REPORTS.

(a) STUDY AND RECOMMENDATIONS.—The head of each agency with a budget of more than $50,000,000 for its SBIR program for

fiscal year 1999, in consultation with the Small Business Administration, shall, not later than 6 months after the date of enactment

of this Act, cooperatively enter into an agreement with the National

Academy of Sciences for the National Research Council to—

(1) conduct a comprehensive study of how the SBIR program has stimulated technological innovation and used small

businesses to meet Federal research and development needs,

including—

(A) a review of the value to the Federal research agencies of the research projects being conducted under the

SBIR program, and of the quality of research being conducted by small businesses participating under the program, including a comparison of the value of projects conducted under the SBIR program to those funded by other

Federal research and development expenditures;

(B) to the extent practicable, an evaluation of the economic benefits achieved by the SBIR program, including

the economic rate of return, and a comparison of the economic benefits, including the economic rate of return,

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achieved by the SBIR program with the economic benefits,

including the economic rate of return, of other Federal research and development expenditures;

(C) an evaluation of the noneconomic benefits achieved

by the SBIR program over the life of the program;

(D) a comparison of the allocation for fiscal year 2000

of Federal research and development funds to small businesses with such allocation for fiscal year 1983, and an

analysis of the factors that have contributed to such allocation; and

(E) an analysis of whether Federal agencies, in fulfilling their procurement needs, are making sufficient effort

to use small businesses that have completed a second phase

award under the SBIR program; and

(2) make recommendations with respect to—

(A) measures of outcomes for strategic plans submitted

under section 306 of title 5, United States Code, and performance plans submitted under section 1115 of title 31,

United States Code, of each Federal agency participating in

the SBIR program;

(B) whether companies who can demonstrate project

feasibility, but who have not received a first phase award,

should be eligible for second phase awards, and the potential impact of such awards on the competitive selection

process of the program;

(C) whether the Federal Government should be permitted to recoup some or all of its expenses if a controlling

interest in a company receiving an SBIR award is sold to

a foreign company or to a company that is not a small

business concern;

(D) how to increase the use by the Federal Government

in its programs and procurements of technology-oriented

small businesses; and

(E) improvements to the SBIR program, if any are considered appropriate.

(b) PARTICIPATION BY SMALL BUSINESS.—

(1) IN GENERAL.—In a manner consistent with law and

with National Research Council study guidelines and procedures, knowledgeable individuals from the small business community with experience in the SBIR program shall be

included—

(A) in any panel established by the National Research

Council for the purpose of performing the study conducted

under this section; and

(B) among those who are asked by the National Research Council to peer review the study.

(2) CONSULTATION.—To ensure that the concerns of small

business are appropriately considered under this subsection, the

National Research Council shall consult with and consider the

views of the Office of Technology and the Office of Advocacy of

the Small Business Administration and other interested parties,

including entities, organizations, and individuals actively engaged in enhancing or developing the technological capabilities

of small business concerns.

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(c) PROGRESS REPORTS.—The National Research Council shall

provide semiannual progress reports on the study conducted under

this section to the Committee on Science and the Committee on

Small Business of the House of Representatives, and to the Committee on Small Business of the Senate.

(d) REPORT.—The National Research Council shall transmit to

the heads of agencies entering into an agreement under this section

and to the Committee on Science and the Committee on Small Business of the House of Representatives, and to the Committee on Small

Business of the Senate—

(1) not later than 3 years after the date of enactment of this

Act, a report including the results of the study conducted under

subsection (a)(1) and recommendations made under subsection

(a)(2); and

(2) not later than 6 years after that date of enactment, an

update of such report.

SEC. 109. FEDERAL AGENCY EXPENDITURES FOR THE SBIR PROGRAM.

Section 9(i) of the Small Business Act (15 U.S.C. 638(i)) is

amended—

(1) by striking ‘‘(i) Each Federal’’ and inserting the following:

‘‘(i) ANNUAL REPORTING.—

‘‘(1) IN GENERAL.—Each Federal’’; and

(2) by adding at the end the following:

‘‘(2) CALCULATION OF EXTRAMURAL BUDGET.—

‘‘(A) METHODOLOGY.—Not later than 4 months after the

date of enactment of each appropriations Act for a Federal

agency required by this section to have an SBIR program,

the Federal agency shall submit to the Administrator a report, which shall include a description of the methodology

used for calculating the amount of the extramural budget

of that Federal agency.

‘‘(B) ADMINISTRATOR’S ANALYSIS.—The Administrator

shall include an analysis of the methodology received from

each Federal agency referred to in subparagraph (A) in the

report required by subsection (b)(7).’’.

SEC. 110. POLICY DIRECTIVE MODIFICATIONS.

Section 9(j) of the Small Business Act (15 U.S.C. 638(j)) is

amended by adding at the end the following:

‘‘(3) ADDITIONAL MODIFICATIONS.—Not later than 120 days

after the date of enactment of the Small Business Innovation

Research Program Reauthorization Act of 2000, the Administrator shall modify the policy directives issued pursuant to this

subsection—

‘‘(A) to clarify that the rights provided for under paragraph (2)(A) apply to all Federal funding awards under

this section, including the first phase (as described in subsection (e)(4)(A)), the second phase (as described in subsection (e)(4)(B)), and the third phase (as described in subsection (e)(4)(C));

‘‘(B) to provide for the requirement of a succinct commercialization plan with each application for a second

phase award that is moving toward commercialization;

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‘‘(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 PRO- GRAM.—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.

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‘‘(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—

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‘‘(i) to make grants or loans to companies to pay a

portion or all of the cost of developing SBIR proposals;

‘‘(ii) to establish or operate a Mentoring Network

within the FAST program to provide business advice

and counseling that will assist small business concerns

that have been identified by FAST program participants, program managers of participating SBIR agencies, the Administration, or other entities that are

knowledgeable about the SBIR and STTR programs as

good candidates for the SBIR and STTR programs,

and that would benefit from mentoring, in accordance

with section 35;

‘‘(iii) to create or participate in a training program

for individuals providing SBIR outreach and assistance at the State and local levels; and

‘‘(iv) to encourage the commercialization of technology developed through SBIR program funding.

‘‘(2) SELECTION CONSIDERATIONS.—In making awards or

entering into cooperative agreements under this section, the Administrator and the SBIR program managers referred to in

paragraph (1)—

‘‘(A) may only consider proposals by applicants that intend to use a portion of the Federal assistance provided

under this section to provide outreach, financial support, or

technical assistance to technology-based small business concerns participating in or interested in participating in the

SBIR program; and

‘‘(B) shall consider, at a minimum—

‘‘(i) whether the applicant has demonstrated that

the assistance to be provided would address unmet

needs of small business concerns in the community,

and whether it is important to use Federal funding for

the proposed activities;

‘‘(ii) whether the applicant has demonstrated that

a need exists to increase the number or success of small

high-technology businesses in the State, as measured

by the number of first phase and second phase SBIR

awards that have historically been received by small

business concerns in the State;

‘‘(iii) whether the projected costs of the proposed activities are reasonable;

‘‘(iv) whether the proposal integrates and coordinates the proposed activities with other State and local

programs assisting small high-technology firms in the

State; and

‘‘(v) the manner in which the applicant will measure the results of the activities to be conducted.

‘‘(3) PROPOSAL LIMIT.—Not more than 1 proposal may be

submitted for inclusion in the FAST program under this section

to provide services in any one State in any 1 fiscal year.

‘‘(4) PROCESS.—Proposals and applications for assistance

under this section shall be in such form and subject to such

procedures as the Administrator shall establish.

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‘‘(d) COOPERATION AND COORDINATION.—In carrying out the

FAST program under this section, the Administrator shall cooperate

and coordinate with—

‘‘(1) Federal agencies required by section 9 to have an SBIR

program; and

‘‘(2) entities, organizations, and individuals actively engaged in enhancing or developing the technological capabilities

of small business concerns, including—

‘‘(A) State and local development agencies and entities;

‘‘(B) State committees established under the Experimental Program to Stimulate Competitive Research of the

National Science Foundation (as established under section

113 of the National Science Foundation Authorization Act

of 1988 (42 U.S.C. 1862g));

‘‘(C) State science and technology councils; and

‘‘(D) representatives of technology-based small business

concerns.

‘‘(e) ADMINISTRATIVE REQUIREMENTS.— ‘‘(1) COMPETITIVE BASIS.—Awards and cooperative agreements under this section shall be made or entered into, as applicable, on a competitive basis.

‘‘(2) MATCHING REQUIREMENTS.— ‘‘(A) IN GENERAL.—The non-Federal share of the cost of

an activity (other than a planning activity) carried out

using an award or under a cooperative agreement under

this section shall be—

‘‘(i) 50 cents for each Federal dollar, in the case of

a recipient that will serve small business concerns located in one of the 18 States receiving the fewest SBIR

first phase awards (as described in section 9(e)(4)(A));

‘‘(ii) except as provided in subparagraph (B), 1 dollar for each Federal dollar, in the case of a recipient

that will serve small business concerns located in one

of the 16 States receiving the greatest number of such

SBIR first phase awards; and

‘‘(iii) except as provided in subparagraph (B), 75

cents for each Federal dollar, in the case of a recipient

that will serve small business concerns located in a

State that is not described in clause (i) or (ii) that is

receiving such SBIR first phase awards.

‘‘(B) LOW-INCOME AREAS.—The non-Federal share of

the cost of the activity carried out using an award or under

a cooperative agreement under this section shall be 50 cents

for each Federal dollar that will be directly allocated by a

recipient described in subparagraph (A) to serve small business concerns located in a qualified census tract, as that

term is defined in section 42(d)(5)(C)(ii) of the Internal Revenue Code of 1986. Federal dollars not so allocated by that

recipient shall be subject to the matching requirements of

subparagraph (A).

‘‘(C) TYPES OF FUNDING.—The non-Federal share of the

cost of an activity carried out by a recipient shall be comprised of not less than 50 percent cash and not more than

50 percent of indirect costs and in-kind contributions, exVerDate 11-MAY-2000 19:35 Dec 21, 2000 Jkt 067191 PO 00000 Frm 01069 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.009 pfrm01 PsN: HR1033
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cept that no such costs or contributions may be derived

from funds from any other Federal program.

‘‘(D) RANKINGS.—For purposes of subparagraph (A),

the Administrator shall reevaluate the ranking of a State

once every 2 fiscal years, beginning with fiscal year 2001,

based on the most recent statistics compiled by the Administrator.

‘‘(3) DURATION.—Awards may be made or cooperative

agreements entered into under this section for multiple years,

not to exceed 5 years in total.

‘‘(f) REPORTS.—

‘‘(1) INITIAL REPORT.—Not later than 120 days after the

date of enactment of the Small Business Innovation Research

Program Reauthorization Act of 2000, the Administrator shall

prepare and submit to the Committee on Small Business of the

Senate and the Committee on Science and the Committee on

Small Business of the House of Representatives a report, which

shall include, with respect to the FAST program, including

Mentoring Networks—

‘‘(A) a description of the structure and procedures of the

program;

‘‘(B) a management plan for the program; and

‘‘(C) a description of the merit-based review process to

be used in the program.

‘‘(2) ANNUAL REPORTS.—The Administrator shall submit an

annual report to the Committee on Small Business of the Senate and the Committee on Science and the Committee on Small

Business of the House of Representatives regarding—

‘‘(A) the number and amount of awards provided and

cooperative agreements entered into under the FAST program during the preceding year;

‘‘(B) a list of recipients under this section, including

their location and the activities being performed with the

awards made or under the cooperative agreements entered

into; and

‘‘(C) the Mentoring Networks and the mentoring database, as provided for under section 35, including—

‘‘(i) the status of the inclusion of mentoring information in the database required by section 9(k); and

‘‘(ii) the status of the implementation and description of the usage of the Mentoring Networks.

‘‘(g) REVIEWS BY INSPECTOR GENERAL.—

‘‘(1) IN GENERAL.—The Inspector General of the Administration shall conduct a review of—

‘‘(A) the extent to which recipients under the FAST program are measuring the performance of the activities being

conducted and the results of such measurements; and

‘‘(B) the overall management and effectiveness of the

FAST program.

‘‘(2) REPORT.—During the first quarter of fiscal year 2004,

the Inspector General of the Administration shall submit a report to the Committee on Small Business of the Senate and the

Committee on Science and the Committee on Small Business of

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the House of Representatives on the review conducted under

paragraph (1).

‘‘(h) PROGRAM LEVELS.—

‘‘(1) IN GENERAL.—There is authorized to be appropriated to

carry out the FAST program, including Mentoring Networks,

under this section and section 35, $10,000,000 for each of fiscal

years 2001 through 2005.

‘‘(2) MENTORING DATABASE.—Of the total amount made

available under paragraph (1) for fiscal years 2001 through

2005, a reasonable amount, not to exceed a total of $500,000,

may be used by the Administration to carry out section 35(d).

‘‘(i) TERMINATION.—The authority to carry out the FAST program under this section shall terminate on September 30, 2005.’’.

(c) COORDINATION OF TECHNOLOGY DEVELOPMENT PROGRAMS.—Section 9 of the Small Business Act (15 U.S.C. 638) is

amended by adding at the end the following:

‘‘(u) COORDINATION OF TECHNOLOGY DEVELOPMENT PROGRAMS.—

‘‘(1) DEFINITION OF TECHNOLOGY DEVELOPMENT PROGRAM.—In this subsection, the term ‘technology development

program’ means—

‘‘(A) the Experimental Program to Stimulate Competitive Research of the National Science Foundation, as established under section 113 of the National Science Foundation Authorization Act of 1988 (42 U.S.C. 1862g);

‘‘(B) the Defense Experimental Program to Stimulate

Competitive Research of the Department of Defense;

‘‘(C) the Experimental Program to Stimulate Competitive Research of the Department of Energy;

‘‘(D) the Experimental Program to Stimulate Competitive Research of the Environmental Protection Agency;

‘‘(E) the Experimental Program to Stimulate Competitive Research of the National Aeronautics and Space Administration;

‘‘(F) the Institutional Development Award Program of

the National Institutes of Health; and

‘‘(G) the National Research Initiative Competitive

Grants Program of the Department of Agriculture.

‘‘(2) COORDINATION REQUIREMENTS.—Each Federal agency

that is subject to subsection (f) and that has established a technology development program may, in each fiscal year, review

for funding under that technology development program—

‘‘(A) any proposal to provide outreach and assistance to

1 or more small business concerns interested in participating in the SBIR program, including any proposal to

make a grant or loan to a company to pay a portion or all

of the cost of developing an SBIR proposal, from an entity,

organization, or individual located in—

‘‘(i) a State that is eligible to participate in that

program; or

‘‘(ii) a State described in paragraph (3); or

‘‘(B) any proposal for the first phase of the SBIR program, if the proposal, though meritorious, is not funded

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through the SBIR program for that fiscal year due to funding restraints, from a small business concern located in—

‘‘(i) a State that is eligible to participate in a technology development program; or

‘‘(ii) a State described in paragraph (3).

‘‘(3) ADDITIONALLY ELIGIBLE STATE.—A State referred to in

subparagraph (A)(ii) or (B)(ii) of paragraph (2) is a State in

which the total value of contracts awarded to small business

concerns under all SBIR programs is less than the total value

of contracts awarded to small business concerns in a majority

of other States, as determined by the Administrator in biennial

fiscal years, beginning with fiscal year 2000, based on the most

recent statistics compiled by the Administrator.’’.

SEC. 112. MENTORING NETWORKS.

The Small Business Act (15 U.S.C. 631 et seq.) is amended by

inserting after section 34, as added by section 111(b)(2) of this Act,

the following:

‘‘SEC. 35. MENTORING NETWORKS.

‘‘(a) FINDINGS.—Congress finds that—

‘‘(1) the SBIR and STTR programs create jobs, increase capacity for technological innovation, and boost international

competitiveness;

‘‘(2) increasing the quantity of applications from all States

to the SBIR and STTR programs would enhance competition

for such awards and the quality of the completed projects; and

‘‘(3) mentoring is a natural complement to the FAST program of reaching out to new companies regarding the SBIR

and STTR programs as an effective and low-cost way to improve the likelihood that such companies will succeed in such

programs in developing and commercializing their research.

‘‘(b) AUTHORIZATION FOR MENTORING NETWORKS.—The recipient of an award or participant in a cooperative agreement under

section 34 may use a reasonable amount of such assistance for the

establishment of a Mentoring Network under this section.

‘‘(c) CRITERIA FOR MENTORING NETWORKS.—A Mentoring Network established using assistance under section 34 shall—

‘‘(1) provide business advice and counseling to high technology small business concerns located in the State or region

served by the Mentoring Network and identified under section

34(c)(1)(E)(ii) as potential candidates for the SBIR or STTR

programs;

‘‘(2) identify volunteer mentors who—

‘‘(A) are persons associated with a small business concern that has successfully completed one or more SBIR or

STTR funding agreements; and

‘‘(B) have agreed to guide small business concerns

through all stages of the SBIR or STTR program process,

including providing assistance relating to—

‘‘(i) proposal writing;

‘‘(ii) marketing;

‘‘(iii) Government accounting;

‘‘(iv) Government audits;

‘‘(v) project facilities and equipment;

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‘‘(vi) human resources;

‘‘(vii) third phase partners;

‘‘(viii) commercialization;

‘‘(ix) venture capital networking; and

‘‘(x) other matters relevant to the SBIR and STTR

programs;

‘‘(3) have experience working with small business concerns

participating in the SBIR and STTR programs;

‘‘(4) contribute information to the national database referred to in subsection (d); and

‘‘(5) agree to reimburse volunteer mentors for out-of-pocket

expenses related to service as a mentor under this section.

‘‘(d) MENTORING DATABASE.—The Administrator shall—

‘‘(1) include in the database required by section 9(k)(1), in

cooperation with the SBIR, STTR, and FAST programs, information on Mentoring Networks and mentors participating

under this section, including a description of their areas of expertise;

‘‘(2) work cooperatively with Mentoring Networks to maintain and update the database;

‘‘(3) take such action as may be necessary to aggressively

promote Mentoring Networks under this section; and

‘‘(4) fulfill the requirements of this subsection either directly

or by contract.’’.

SEC. 113. SIMPLIFIED REPORTING REQUIREMENTS.

Section 9 of the Small Business Act (15 U.S.C. 638), as amended by this Act, is further amended by adding at the end the following:

‘‘(v) SIMPLIFIED REPORTING REQUIREMENTS.—The Administrator shall work with the Federal agencies required by this section

to have an SBIR program to standardize reporting requirements for

the collection of data from SBIR applicants and awardees, including data for inclusion in the database under subsection (k), taking

into consideration the unique needs of each agency, and to the extent

possible, permitting the updating of previously reported information

by electronic means. Such requirements shall be designed to minimize the burden on small businesses.’’.

SEC. 114. RURAL OUTREACH PROGRAM EXTENSION.

(a) EXTENSION OF TERMINATION DATE.—Section 501(b)(2) of the

Small Business Reauthorization Act of 1997 (15 U.S.C. 638 note;

111 Stat. 2622) is amended by striking ‘‘2001’’ and inserting ‘‘2005’’.

(b) EXTENSION OF AUTHORIZATION OF APPROPRIATIONS.—Section 9(s)(2) of the Small Business Act (15 U.S.C. 638(s)(2)) is

amended by striking ‘‘for fiscal year 1998, 1999, 2000, or 2001’’ and

inserting ‘‘for each of the fiscal years 2000 through 2005,’’.

TITLE II—BUSINESS LOAN PROGRAMS

SEC. 201. SHORT TITLE.

This title may be cited as the ‘‘Small Business Loan Improvement Act of 2000’’.

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SEC. 202. LEVELS OF PARTICIPATION.

Section 7(a)(2)(A) of the Small Business Act (15 U.S.C.

636(a)(2)(A)) is amended—

(1) in paragraph (i) by striking ‘‘$100,000’’ and inserting ‘‘$150,000’’; and

(2) in paragraph (ii)—

(A) by striking ‘‘80 percent’’ and inserting ‘‘85 percent’’;

and

(B) by striking ‘‘$100,000’’ and inserting ‘‘$150,000’’.

SEC. 203. LOAN AMOUNTS.

Section 7(a)(3)(A) of the Small Business Act (15 U.S.C. 636(a)(3)(A)) is amended by striking ‘‘$750,000,’’ and inserting,

‘‘$1,000,000 (or if the gross loan amount would exceed $2,000,000),’’.

SEC. 204. INTEREST ON DEFAULTED LOANS.

Section 7(a)(4)(B) of the Small Business Act (15 U.S.C.

636(a)(4)(B)) is amended by adding at the end the following:

‘‘(iii) APPLICABILITY.—Clauses (i) and (ii) shall not

apply to loans made on or after October 1, 2000.’’.

SEC. 205. PREPAYMENT OF LOANS.

Section 7(a)(4) of the Small Business Act (15 U.S.C. 636(a)(4))

is further amended—

(1) by striking ‘‘(4) INTEREST RATES AND FEES.—’’ and inserting ‘‘(4) INTEREST RATES AND PREPAYMENT CHARGES.—’’;

and

(2) by adding at the end the following:

‘‘(C) PREPAYMENT CHARGES.— ‘‘(i) IN GENERAL.—A borrower who prepays any

loan guaranteed under this subsection shall remit to

the Administration a subsidy recoupment fee calculated

in accordance with clause (ii) if—

‘‘(I) the loan is for a term of not less than 15

years;

‘‘(II) the prepayment is voluntary;

‘‘(III) the amount of prepayment in any calendar year is more than 25 percent of the outstanding balance of the loan; and

‘‘(IV) the prepayment is made within the first

3 years after disbursement of the loan proceeds.

‘‘(ii) SUBSIDY RECOUPMENT FEE.—The subsidy

recoupment fee charged under clause (i) shall be—

‘‘(I) 5 percent of the amount of prepayment, if

the borrower prepays during the first year after

disbursement;

‘‘(II) 3 percent of the amount of prepayment, if

the borrower prepays during the second year after

disbursement; and

‘‘(III) 1 percent of the amount of prepayment,

if the borrower prepays during the third year after

disbursement.’’.

SEC. 206. GUARANTEE FEES.

Section 7(a)(18) of the Small Business Act (15 U.S.C.

636(a)(18)) is amended to read as follows:

‘‘(18) GUARANTEE FEES.—

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‘‘(A) IN GENERAL.—With respect to each loan guaranteed under this subsection (other than a loan that is repayable in 1 year or less), the Administration shall collect a

guarantee fee, which shall be payable by the participating

lender, and may be charged to the borrower, as follows:

‘‘(i) A guarantee fee equal to 2 percent of the deferred participation share of a total loan amount that

is not more than $150,000.

‘‘(ii) A guarantee fee equal to 3 percent of the deferred participation share of a total loan amount that

is more than $150,000, but not more than $700,000.

‘‘(iii) A guarantee fee equal to 3.5 percent of the deferred participation share of a total loan amount that

is more than $700,000.

‘‘(B) RETENTION OF CERTAIN FEES.—Lenders participating in the programs established under this subsection

may retain not more than 25 percent of a fee collected

under subparagraph (A)(i).’’.

SEC. 207. LEASE TERMS.

Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is further amended by adding at the end the following:

‘‘(28) LEASING.—In addition to such other lease arrangements as may be authorized by the Administration, a borrower

may permanently lease to one or more tenants not more than

20 percent of any property constructed with the proceeds of a

loan guaranteed under this subsection, if the borrower permanently occupies and uses not less than 60 percent of the total

business space in the property.’’.

SEC. 208. APPRAISALS FOR LOANS SECURED BY REAL PROPERTY.

(a) SMALL BUSINESS ACT.—Section 7(a) of the Small Business

Act (15 U.S.C. 636(a)) is amended by adding at the end the following:

‘‘(29) REAL ESTATE APPRAISALS.—With respect to a loan

under this subsection that is secured by commercial real property, an appraisal of such property by a State licensed or certified appraiser—

‘‘(A) shall be required by the Administration in connection with any such loan for more than $250,000; or

‘‘(B) may be required by the Administration or the

lender in connection with any such loan for $250,000 or

less, if such appraisal is necessary for appropriate evaluation of creditworthiness.’’.

(b) SMALL BUSINESS INVESTMENT ACT OF 1958.—Section

502(3)(E) of the Small Business Investment Act of 1958 (15 U.S.C.

696(3)(E)) is amended—

(1) by striking ‘‘The collateral’’ and inserting the following:

‘‘(i) IN GENERAL.—The collateral’’; and

(2) by adding at the end the following:

‘‘(ii) APPRAISALS.—With respect to commercial real

property provided by the small business concern as collateral, an appraisal of the property by a State licensed

or certified appraiser—

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‘‘(I) shall be required by the Administration

before disbursement of the loan if the estimated

value of that property is more than $250,000; or

‘‘(II) may be required by the Administration or

the lender before disbursement of the loan if the estimated value of that property is $250,000 or less,

and such appraisal is necessary for appropriate

evaluation of creditworthiness.’’.

SEC. 209. SALE OF GUARANTEED LOANS MADE FOR EXPORT PURPOSES.

Section 5(f)(1)(C) of the Small Business Act (15 U.S.C.

634(f)(1)(C)) is amended to read as follows:

‘‘(C) each loan, except each loan made under section

7(a)(14), shall have been fully disbursed to the borrower prior

to any sale.’’.

SEC. 210. MICROLOAN PROGRAM.

(a) IN GENERAL.—Section 7(m) of the Small Business Act (15

U.S.C. 636(m)) is amended—

(1) in paragraphs (1)(B)(iii) and (3)(E), by striking

‘‘$25,000’’ each place it appears and inserting ‘‘$35,000’’;

(2) in paragraphs (1)(A)(iii)(I), (3)(A)(ii), and (4)(C)(i)(II),

by striking ‘‘$7,500’’ each place it appears and inserting

‘‘$10,000’’;

(3) in paragraph (3)(E), by striking ‘‘$15,000’’ and inserting

‘‘$20,000’’;

(4) in paragraph (5)(A)—

(A) by striking ‘‘25 grants’’ and inserting ‘‘55 grants’’;

and

(B) by striking ‘‘$125,000’’ and inserting ‘‘$200,000’’;

(5) in paragraph (6)(B), by striking ‘‘$10,000’’ and inserting

‘‘$15,000’’; and

(6) in paragraph (7), by striking subparagraph (A) and inserting the following:

‘‘(A) NUMBER OF PARTICIPANTS.—Under the program

authorized by this subsection, the Administration may

fund, on a competitive basis, not more than 300 intermediaries.’’.

(b) CONFORMING AMENDMENTS.—Section 7(m)(11)(B) of the

Small Business Act (15 U.S.C. 636(m)(11)(B)) is amended by striking ‘‘$25,000’’ and inserting ‘‘$35,000’’.

TITLE III—CERTIFIED DEVELOPMENT COMPANY

PROGRAM

SEC. 301. SHORT TITLE.

This title may be cited as the ‘‘Certified Development Company

Program Improvements Act of 2000’’.

SEC. 302. WOMEN-OWNED BUSINESSES.

Section 501(d)(3)(C) of the Small Business Investment Act of

1958 (15 U.S.C. 695(d)(3)(C)) is amended by inserting before the

comma ‘‘or women-owned business development’’.

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SEC. 303. MAXIMUM DEBENTURE SIZE.

Section 502(2) of the Small Business Investment Act of 1958 (15

U.S.C. 696(2)) is amended to read as follows:

‘‘(2) Loans made by the Administration under this section

shall be limited to $1,000,000 for each such identifiable small

business concern, except loans meeting the criteria specified in

section 501(d)(3), which shall be limited to $1,300,000 for each

such identifiable small business concern.’’.

SEC. 304. FEES.

Section 503(f) of the Small Business Investment Act of 1958 (15

U.S.C. 697(f)) is amended to read as follows:

‘‘(f) EFFECTIVE DATE.—The fees authorized by subsections (b)

and (d) shall apply to financings approved by the Administration

on or after October 1, 1996, but shall not apply to financings approved by the Administration on or after October 1, 2003.’’.

SEC. 305. PREMIER CERTIFIED LENDERS PROGRAM.

Section 217(b) of the Small Business Administration Reauthorization and Amendments Act of 1994 (Public Law 103–403, 15

U.S.C. 697 note) (relating to section 508 of the Small Business Investment Act of 1958) is repealed.

SEC. 306. SALE OF CERTAIN DEFAULTED LOANS.

Section 508 of the Small Business Investment Act of 1958 (15

U.S.C. 697e) is amended—

(1) in subsection (a), by striking ‘‘On a pilot program basis,

the’’ and inserting ‘‘The’’;

(2) by redesignating subsections (d) through (i) as subsections (e) through (j), respectively;

(3) in subsection (f) (as redesignated by paragraph (2)), by

striking ‘‘subsection (f)’’ and inserting ‘‘subsection (g)’’;

(4) in subsection (h) (as redesignated by paragraph (2)), by

striking ‘‘subsection (f)’’ and inserting ‘‘subsection (g)’’; and

(5) by inserting after subsection (c) the following:

‘‘(d) SALE OF CERTAIN DEFAULTED LOANS.—

‘‘(1) NOTICE.—If, upon default in repayment, the Administration acquires a loan guaranteed under this section and identifies such loan for inclusion in a bulk asset sale of defaulted

or repurchased loans or other financings, it shall give prior notice thereof to any certified development company which has a

contingent liability under this section. The notice shall be given

to the company as soon as possible after the financing is identified, but not less than 90 days before the date the Administration first makes any records on such financing available for examination by prospective purchasers prior to its offering in a

package of loans for bulk sale.

‘‘(2) LIMITATIONS.—The Administration shall not offer any

loan described in paragraph (1) as part of a bulk sale unless

it—

‘‘(A) provides prospective purchasers with the opportunity to examine the Administration’s records with respect

to such loan; and

‘‘(B) provides the notice required by paragraph (1).’’.

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SEC. 307. LOAN LIQUIDATION.

(a) LIQUIDATION AND FORECLOSURE.—Title V of the Small Business Investment Act of 1958 (15 U.S.C. 695 et seq.) is amended by

adding at the end the following:

‘‘SEC. 510. FORECLOSURE AND LIQUIDATION OF LOANS.

‘‘(a) DELEGATION OF AUTHORITY.—In accordance with this section, the Administration shall delegate to any qualified State or

local development company (as defined in section 503(e)) that meets

the eligibility requirements of subsection (b)(1) the authority to foreclose and liquidate, or to otherwise treat in accordance with this

section, defaulted loans in its portfolio that are funded with the proceeds of debentures guaranteed by the Administration under section

503.

‘‘(b) ELIGIBILITY FOR DELEGATION.— ‘‘(1) REQUIREMENTS.—A qualified State or local development company shall be eligible for a delegation of authority

under subsection (a) if—

‘‘(A) the company—

‘‘(i) has participated in the loan liquidation pilot

program established by the Small Business Programs

Improvement Act of 1996 (15 U.S.C. 695 note), as in effect on the day before promulgation of final regulations

by the Administration implementing this section;

‘‘(ii) is participating in the Premier Certified Lenders Program under section 508; or

‘‘(iii) during the 3 fiscal years immediately prior to

seeking such a delegation, has made an average of not

less than 10 loans per year that are funded with the

proceeds of debentures guaranteed under section 503;

and

‘‘(B) the company—

‘‘(i) has one or more employees—

‘‘(I) with not less than 2 years of substantive,

decision-making experience in administering the

liquidation and workout of problem loans secured

in a manner substantially similar to loans funded

with the proceeds of debentures guaranteed under

section 503; and

‘‘(II) who have completed a training program

on loan liquidation developed by the Administration in conjunction with qualified State and local

development companies that meet the requirements

of this paragraph; or

‘‘(ii) submits to the Administration documentation

demonstrating that the company has contracted with a

qualified third-party to perform any liquidation activities and secures the approval of the contract by the Administration with respect to the qualifications of the

contractor and the terms and conditions of liquidation

activities.

‘‘(2) CONFIRMATION.—On request the Administration shall

examine the qualifications of any company described in subsection (a) to determine if such company is eligible for the delegation of authority under this section. If the Administration deVerDate 11-MAY-2000 19:35 Dec 21, 2000 Jkt 067191 PO 00000 Frm 01078 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.009 pfrm01 PsN: HR1033
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termines that a company is not eligible, the Administration

shall provide the company with the reasons for such ineligibility.

‘‘(c) SCOPE OF DELEGATED AUTHORITY.— ‘‘(1) IN GENERAL.—Each qualified State or local development company to which the Administration delegates authority

under section (a) may with respect to any loan described in subsection (a)—

‘‘(A) perform all liquidation and foreclosure functions,

including the purchase in accordance with this subsection

of any other indebtedness secured by the property securing

the loan, in a reasonable and sound manner according to

commercially accepted practices, pursuant to a liquidation

plan approved in advance by the Administration under

paragraph (2)(A);

‘‘(B) litigate any matter relating to the performance of

the functions described in subparagraph (A), except that the

Administration may—

‘‘(i) defend or bring any claim if—

‘‘(I) the outcome of the litigation may adversely

affect the Administration’s management of the loan

program established under section 502; or

‘‘(II) the Administration is entitled to legal

remedies not available to a qualified State or local

development company and such remedies will benefit either the Administration or the qualified State

or local development company; or

‘‘(ii) oversee the conduct of any such litigation; and

‘‘(C) take other appropriate actions to mitigate loan

losses in lieu of total liquidation or foreclosures, including

the restructuring of a loan in accordance with prudent loan

servicing practices and pursuant to a workout plan approved in advance by the Administration under paragraph

(2)(C).

‘‘(2) ADMINISTRATION APPROVAL.—

‘‘(A) LIQUIDATION PLAN.—

‘‘(i) IN GENERAL.—Before carrying out functions described in paragraph (1)(A), a qualified State or local

development company shall submit to the Administration a proposed liquidation plan.

‘‘(ii) ADMINISTRATION ACTION ON PLAN.—

‘‘(I) TIMING.—Not later than 15 business days

after a liquidation plan is received by the Administration under clause (i), the Administration shall

approve or reject the plan.

‘‘(II) NOTICE OF NO DECISION.—With respect to

any plan that cannot be approved or denied within

the 15-day period required by subclause (I), the

Administration shall within such period provide in

accordance with subparagraph (E) notice to the

company that submitted the plan.

‘‘(iii) ROUTINE ACTIONS.—In carrying out functions

described in paragraph (1)(A), a qualified State or

local development company may undertake routine acVerDate 11-MAY-2000 19:35 Dec 21, 2000 Jkt 067191 PO 00000 Frm 01079 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.009 pfrm01 PsN: HR1033
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tions not addressed in a liquidation plan without obtaining additional approval from the Administration.

‘‘(B) PURCHASE OF INDEBTEDNESS.— ‘‘(i) IN GENERAL.—In carrying out functions described in paragraph (1)(A), a qualified State or local

development company shall submit to the Administration a request for written approval before committing

the Administration to the purchase of any other indebtedness secured by the property securing a defaulted

loan.

‘‘(ii) ADMINISTRATION ACTION ON REQUEST.— ‘‘(I) TIMING.—Not later than 15 business days

after receiving a request under clause (i), the Administration shall approve or deny the request.

‘‘(II) NOTICE OF NO DECISION.—With respect to

any request that cannot be approved or denied

within the 15-day period required by subclause (I),

the Administration shall within such period provide in accordance with subparagraph (E) notice to

the company that submitted the request.

‘‘(C) WORKOUT PLAN.— ‘‘(i) IN GENERAL.—In carrying out functions described in paragraph (1)(C), a qualified State or local

development company shall submit to the Administration a proposed workout plan.

‘‘(ii) ADMINISTRATION ACTION ON PLAN.— ‘‘(I) TIMING.—Not later than 15 business days

after a workout plan is received by the Administration under clause (i), the Administration shall approve or reject the plan.

‘‘(II) NOTICE OF NO DECISION.—With respect to

any workout plan that cannot be approved or denied within the 15-day period required by subclause (I), the Administration shall within such period provide in accordance with subparagraph (E)

notice to the company that submitted the plan.

‘‘(D) COMPROMISE OF INDEBTEDNESS.—In carrying out

functions described in paragraph (1)(A), a qualified State

or local development company may—

‘‘(i) consider an offer made by an obligor to compromise the debt for less than the full amount owing;

and

‘‘(ii) pursuant to such an offer, release any obligor

or other party contingently liable, if the company secures the written approval of the Administration.

‘‘(E) CONTENTS OF NOTICE OF NO DECISION.—Any notice provided by the Administration under subparagraph

(A)(ii)(II), (B)(ii)(II), or (C)(ii)(II)—

‘‘(i) shall be in writing;

‘‘(ii) shall state the specific reason for the Administration’s inability to act on a plan or request;

‘‘(iii) shall include an estimate of the additional

time required by the Administration to act on the plan

or request; and

1077

‘‘(iv) if the Administration cannot act because insufficient information or documentation was provided

by the company submitting the plan or request, shall

specify the nature of such additional information or

documentation.

‘‘(3) CONFLICT OF INTEREST.—In carrying out functions described in paragraph (1), a qualified State or local development

company shall take no action that would result in an actual or

apparent conflict of interest between the company (or any employee of the company) and any third party lender, associate of

a third party lender, or any other person participating in a liquidation, foreclosure, or loss mitigation action.

‘‘(d) SUSPENSION OR REVOCATION OF AUTHORITY.—The Administration may revoke or suspend a delegation of authority under this

section to any qualified State or local development company, if the

Administration determines that the company—

‘‘(1) does not meet the requirements of subsection (b)(1);

‘‘(2) has violated any applicable rule or regulation of the

Administration or any other applicable law; or

‘‘(3) fails to comply with any reporting requirement that

may be established by the Administration relating to carrying

out of functions described in paragraph (1).

‘‘(e) REPORT.— ‘‘(1) IN GENERAL.—Based on information provided by qualified State and local development companies and the Administration, the Administration shall annually submit to the Committees on Small Business of the House of Representatives and

of the Senate a report on the results of delegation of authority

under this section.

‘‘(2) CONTENTS.—Each report submitted under paragraph

(1) shall include the following information:

‘‘(A) With respect to each loan foreclosed or liquidated

by a qualified State or local development company under

this section, or for which losses were otherwise mitigated by

the company pursuant to a workout plan under this

section—

‘‘(i) the total cost of the project financed with the

loan;

‘‘(ii) the total original dollar amount guaranteed

by the Administration;

‘‘(iii) the total dollar amount of the loan at the

time of liquidation, foreclosure, or mitigation of loss;

‘‘(iv) the total dollar losses resulting from the liquidation, foreclosure, or mitigation of loss; and

‘‘(v) the total recoveries resulting from the liquidation, foreclosure, or mitigation of loss, both as a percentage of the amount guaranteed and the total cost of

the project financed.

‘‘(B) With respect to each qualified State or local development company to which authority is delegated under this

section, the totals of each of the amounts described in

clauses (i) through (v) of subparagraph (A).

‘‘(C) With respect to all loans subject to foreclosure, liquidation, or mitigation under this section, the totals of each

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of the amounts described in clauses (i) through (v) of subparagraph (A).

‘‘(D) A comparison between—

‘‘(i) the information provided under subparagraph

(C) with respect to the 12-month period preceding the

date on which the report is submitted; and

‘‘(ii) the same information with respect to loans

foreclosed and liquidated, or otherwise treated, by the

Administration during the same period.

‘‘(E) The number of times that the Administration has

failed to approve or reject a liquidation plan in accordance

with subparagraph (A)(i), a workout plan in accordance

with subparagraph (C)(i), or to approve or deny a request

for purchase of indebtedness under subparagraph (B)(i), including specific information regarding the reasons for the

Administration’s failure and any delays that resulted.’’.

(b) REGULATIONS.—

(1) IN GENERAL.—Not later than 150 days after the date of

enactment of this Act, the Administrator shall issue such regulations as may be necessary to carry out section 510 of the

Small Business Investment Act of 1958, as added by subsection

(a) of this section.

(2) TERMINATION OF PILOT PROGRAM.—Beginning on the

date on which final regulations are issued under paragraph (1),

section 204 of the Small Business Programs Improvement Act

of 1996 (15 U.S.C. 695 note) shall cease to have effect.

TITLE IV—CORRECTIONS TO THE SMALL BUSINESS

INVESTMENT ACT OF 1958

SEC. 401. SHORT TITLE.

This title may be cited as the ‘‘Small Business Investment Corrections Act of 2000’’.

SEC. 402. DEFINITIONS.

(a) SMALL BUSINESS CONCERN.—Section 103(5)(A)(i) of the

Small Business Investment Act of 1958 (15 U.S.C. 662(5)(A)(i)) is

amended by inserting before the semicolon at the end the following:

‘‘regardless of the allocation of control during the investment period

under any investment agreement between the business concern and

the entity making the investment’’.

(b) LONG TERM.—Section 103 of the Small Business Investment

Act of 1958 (15 U.S.C. 662) is amended—

(1) in paragraph (15), by striking ‘‘and’’ at the end;

(2) in paragraph (16), by striking the period at the end and

inserting ‘‘; and’’; and

(3) by adding at the end the following:

‘‘(17) the term ‘long term’, when used in connection with equity capital or loan funds invested in any small business concern or smaller enterprise, means any period of time not less

than 1 year.’’.

SEC. 403. INVESTMENT IN SMALL BUSINESS INVESTMENT COMPANIES.

Section 302(b) of the Small Business Investment Act of 1958 (15

U.S.C. 682(b)) is amended—

1079

(1) by striking ‘‘(b) Notwithstanding’’ and inserting the following:

‘‘(b) FINANCIAL INSTITUTION INVESTMENTS.—

‘‘(1) CERTAIN BANKS.—Notwithstanding’’; and

(2) by adding at the end the following:

‘‘(2) CERTAIN SAVINGS ASSOCIATIONS.—Notwithstanding

any other provision of law, any Federal savings association may

invest in any 1 or more small business investment companies,

or in any entity established to invest solely in small business investment companies, except that in no event may the total

amount of such investments by any such Federal savings association exceed 5 percent of the capital and surplus of the Federal savings association.’’.

SEC. 404. SUBSIDY FEES.

(a) DEBENTURES.—Section 303(b) of the Small Business Investment Act of 1958 (15 U.S.C. 683(b)) is amended by striking ‘‘plus

an additional charge of 1 percent per annum which shall be paid

to and retained by the Administration’’ and inserting ‘‘plus, for debentures obligated after September 30, 2000, an additional charge,

in an amount established annually by the Administration, of not

more than 1 percent per year as necessary to reduce to zero the cost

(as defined in section 502 of the Federal Credit Reform Act of 1990

(2 U.S.C. 661a)) to the Administration of purchasing and guaranteeing debentures under this Act, which shall be paid to and retained by the Administration’’.

(b) PARTICIPATING SECURITIES.—Section 303(g)(2) of the Small

Business Investment Act of 1958 (15 U.S.C. 683(g)(2)) is amended

by striking ‘‘plus an additional charge of 1 percent per annum

which shall be paid to and retained by the Administration’’ and inserting ‘‘plus, for participating securities obligated after September

30, 2000, an additional charge, in an amount established annually

by the Administration, of not more than 1 percent per year as necessary to reduce to zero the cost (as defined in section 502 of the

Federal Credit Reform Act of 1990 (2 U.S.C. 661a)) to the Administration of purchasing and guaranteeing participating securities

under this Act, which shall be paid to and retained by the Administration’’.

SEC. 405. DISTRIBUTIONS.

Section 303(g)(8) of the Small Business Investment Act of 1958

(15 U.S.C. 683(g)(8)) is amended—

(1) by striking ‘‘subchapter s corporation’’ and inserting

‘‘subchapter S corporation’’;

(2) by striking ‘‘the end of any calendar quarter based on

a quarterly’’ and inserting ‘‘any time during any calendar quarter based on an’’; and

(3) by striking ‘‘quarterly distributions for a calendar year,’’

and inserting ‘‘interim distributions for a calendar year,’’.

SEC. 406. CONFORMING AMENDMENT.

Section 310(c)(4) of the Small Business Investment Act of 1958

(15 U.S.C. 687b(c)(4)) is amended by striking ‘‘five years’’ and inserting ‘‘1 year’’.

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TITLE V—REAUTHORIZATION OF SMALL BUSINESS

PROGRAMS

SEC. 501. SHORT TITLE.

This title may be cited as the ‘‘Small Business Programs Reauthorization Act of 2000’’.

SEC. 502. REAUTHORIZATION OF SMALL BUSINESS PROGRAMS.

Section 20 of the Small Business Act (15 U.S.C. 631 note) is

amended by adding at the end the following:

‘‘(g) FISCAL YEAR 2001.—

‘‘(1) PROGRAM LEVELS.—The following program levels are

authorized for fiscal year 2001:

‘‘(A) For the programs authorized by this Act, the Administration is authorized to make—

‘‘(i) $45,000,000 in technical assistance grants as

provided in section 7(m); and

‘‘(ii) $60,000,000 in direct loans, as provided in

7(m).

‘‘(B) For the programs authorized by this Act, the Administration is authorized to make $19,050,000,000 in deferred participation loans and other financings. Of such

sum, the Administration is authorized to make—

‘‘(i) $14,500,000,000 in general business loans as

provided in section 7(a);

‘‘(ii) $4,000,000,000 in financings as provided in

section 7(a)(13) of this Act and section 504 of the Small

Business Investment Act of 1958;

‘‘(iii) $500,000,000 in loans as provided in section

7(a)(21); and

‘‘(iv) $50,000,000 in loans as provided in section

7(m).

‘‘(C) For the programs authorized by title III of the

Small Business Investment Act of 1958, the Administration

is authorized to make—

‘‘(i) $2,500,000,000 in purchases of participating

securities; and

‘‘(ii) $1,500,000,000 in guarantees of debentures.

‘‘(D) For the programs authorized by part B of title IV

of the Small Business Investment Act of 1958, the Administration is authorized to enter into guarantees not to exceed

$4,000,000,000 of which not more than 50 percent may be

in bonds approved pursuant to section 411(a)(3) of that Act.

‘‘(E) The Administration is authorized to make grants

or enter cooperative agreements for a total amount of

$5,000,000 for the Service Corps of Retired Executives program authorized by section 8(b)(1).

‘‘(2) ADDITIONAL AUTHORIZATIONS.—

‘‘(A) There are authorized to be appropriated to the Administration for fiscal year 2001 such sums as may be necessary to carry out the provisions of this Act not elsewhere

provided for, including administrative expenses and necessary loan capital for disaster loans pursuant to section

7(b), and to carry out title IV of the Small Business InvestVerDate 11-MAY-2000 19:35 Dec 21, 2000 Jkt 067191 PO 00000 Frm 01084 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.009 pfrm01 PsN: HR1033
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ment Act of 1958, including salaries and expenses of the

Administration.

‘‘(B) Notwithstanding any other provision of this paragraph, for fiscal year 2001—

‘‘(i) no funds are authorized to be used as loan capital for the loan program authorized by section 7(a)(21)

except by transfer from another Federal department or

agency to the Administration, unless the program level

authorized for general business loans under paragraph

(1)(B)(i) is fully funded; and

‘‘(ii) the Administration may not approve loans on

its own behalf or on behalf of any other Federal department or agency, by contract or otherwise, under terms

and conditions other than those specifically authorized

under this Act or the Small Business Investment Act of

1958, except that it may approve loans under section

7(a)(21) of this Act in gross amounts of not more than

$1,250,000.

‘‘(h) FISCAL YEAR 2002.—

‘‘(1) PROGRAM LEVELS.—The following program levels are

authorized for fiscal year 2002:

‘‘(A) For the programs authorized by this Act, the Administration is authorized to make—

‘‘(i) $60,000,000 in technical assistance grants as

provided in section 7(m); and

‘‘(ii) $80,000,000 in direct loans, as provided in

7(m).

‘‘(B) For the programs authorized by this Act, the Administration is authorized to make $20,050,000,000 in deferred participation loans and other financings. Of such

sum, the Administration is authorized to make—

‘‘(i) $15,000,000,000 in general business loans as

provided in section 7(a);

‘‘(ii) $4,500,000,000 in financings as provided in

section 7(a)(13) of this Act and section 504 of the Small

Business Investment Act of 1958;

‘‘(iii) $500,000,000 in loans as provided in section

7(a)(21); and

‘‘(iv) $50,000,000 in loans as provided in section

7(m).

‘‘(C) For the programs authorized by title III of the

Small Business Investment Act of 1958, the Administration

is authorized to make—

‘‘(i) $3,500,000,000 in purchases of participating

securities; and

‘‘(ii) $2,500,000,000 in guarantees of debentures.

‘‘(D) For the programs authorized by part B of title IV

of the Small Business Investment Act of 1958, the Administration is authorized to enter into guarantees not to exceed

$5,000,000,000 of which not more than 50 percent may be

in bonds approved pursuant to section 411(a)(3) of that Act.

‘‘(E) The Administration is authorized to make grants

or enter cooperative agreements for a total amount of

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$6,000,000 for the Service Corps of Retired Executives program authorized by section 8(b)(1).

‘‘(2) ADDITIONAL AUTHORIZATIONS.— ‘‘(A) There are authorized to be appropriated to the Administration for fiscal year 2002 such sums as may be necessary to carry out the provisions of this Act not elsewhere

provided for, including administrative expenses and necessary loan capital for disaster loans pursuant to section

7(b), and to carry out title IV of the Small Business Investment Act of 1958, including salaries and expenses of the

Administration.

‘‘(B) Notwithstanding any other provision of this paragraph, for fiscal year 2002—

‘‘(i) no funds are authorized to be used as loan capital for the loan program authorized by section 7(a)(21)

except by transfer from another Federal department or

agency to the Administration, unless the program level

authorized for general business loans under paragraph

(1)(B)(i) is fully funded; and

‘‘(ii) the Administration may not approve loans on

its own behalf or on behalf of any other Federal department or agency, by contract or otherwise, under terms

and conditions other than those specifically authorized

under this Act or the Small Business Investment Act of

1958, except that it may approve loans under section

7(a)(21) of this Act in gross amounts of not more than

$1,250,000.

‘‘(i) FISCAL YEAR 2003.—

‘‘(1) PROGRAM LEVELS.—The following program levels are

authorized for fiscal year 2003:

‘‘(A) For the programs authorized by this Act, the Administration is authorized to make—

‘‘(i) $70,000,000 in technical assistance grants as

provided in section 7(m); and

‘‘(ii) $100,000,000 in direct loans, as provided in

7(m).

‘‘(B) For the programs authorized by this Act, the Administration is authorized to make $21,550,000,000 in deferred participation loans and other financings. Of such

sum, the Administration is authorized to make—

‘‘(i) $16,000,000,000 in general business loans as

provided in section 7(a);

‘‘(ii) $5,000,000,000 in financings as provided in

section 7(a)(13) of this Act and section 504 of the Small

Business Investment Act of 1958;

‘‘(iii) $500,000,000 in loans as provided in section

7(a)(21); and

‘‘(iv) $50,000,000 in loans as provided in section

7(m).

‘‘(C) For the programs authorized by title III of the

Small Business Investment Act of 1958, the Administration

is authorized to make—

‘‘(i) $4,000,000,000 in purchases of participating

securities; and

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‘‘(ii) $3,000,000,000 in guarantees of debentures.

‘‘(D) For the programs authorized by part B of title IV

of the Small Business Investment Act of 1958, the Administration is authorized to enter into guarantees not to exceed

$6,000,000,000 of which not more than 50 percent may be

in bonds approved pursuant to section 411(a)(3) of that Act.

‘‘(E) The Administration is authorized to make grants

or enter into cooperative agreements for a total amount of

$7,000,000 for the Service Corps of Retired Executives program authorized by section 8(b)(1).

‘‘(2) ADDITIONAL AUTHORIZATIONS.— ‘‘(A) There are authorized to be appropriated to the Administration for fiscal year 2003 such sums as may be necessary to carry out the provisions of this Act not elsewhere

provided for, including administrative expenses and necessary loan capital for disaster loans pursuant to section

7(b), and to carry out title IV of the Small Business Investment Act of 1958, including salaries and expenses of the

Administration.

‘‘(B) Notwithstanding any other provision of this paragraph, for fiscal year 2003—

‘‘(i) no funds are authorized to be used as loan capital for the loan program authorized by section 7(a)(21)

except by transfer from another Federal department or

agency to the Administration, unless the program level

authorized for general business loans under paragraph

(1)(B)(i) is fully funded; and

‘‘(ii) the Administration may not approve loans on

its own behalf or on behalf of any other Federal department or agency, by contract or otherwise, under terms

and conditions other than those specifically authorized

under this Act or the Small Business Investment Act of

1958, except that it may approve loans under section

7(a)(21) of this Act in gross amounts of not more than

$1,250,000.’’.

SEC. 503. ADDITIONAL REAUTHORIZATIONS.

(a) DRUG-FREE WORKPLACE PROGRAM.—Section 27 of the Small

Business Act (15 U.S.C. 654) is amended—

(1) in the section heading, by striking ‘‘DRUG-FREE WORKPLACE DEMONSTRATION PROGRAM’’ and inserting ‘‘PAUL D.

COVERDELL DRUG-FREE WORKPLACE PROGRAM’’; and

(2) in subsection (g)(1), by striking ‘‘$10,000,000 for fiscal

years 1999 and 2000’’ and inserting ‘‘$5,000,000 for each of fiscal years 2001 through 2003’’.

(b) HUBZone Program.—Section 31 of the Small Business Act

(15 U.S.C. 657a) is amended by adding at the end the following:

‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There is authorized

to be appropriated to carry out the program established by this section $10,000,000 for each of fiscal years 2001 through 2003.’’.

(c) VERY SMALL BUSINESS CONCERNS PROGRAM.—Section 304(i)

of the Small Business Administration Reauthorization and Amendments Act of 1994 (Public Law 103–403; 15 U.S.C. 644 note) is

amended by striking ‘‘September 30, 2000’’ and inserting ‘‘September 30, 2003’’.

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(d) SOCIALLY AND ECONOMICALLY DISADVANTAGED BUSINESSES

PROGRAM.—Section 7102(c) of the Federal Acquisition Streamlining

Act of 1994 (Public Law 103–355; 15 U.S.C. 644 note) is amended

by striking ‘‘September 30, 2000’’ and inserting ‘‘September 30,

2003’’.

(e) SBDC SERVICES.—Section 21(c)(3)(T) of the Small Business

Act (15 U.S.C. 648(c)(3)(T)) is amended by striking ‘‘2000’’ and inserting ‘‘2003’’.

SEC. 504. COSPONSORSHIP.

(a) IN GENERAL.—Section 8(b)(1)(A) of the Small Business Act

(15 U.S.C. 637(b)(1)(A)) is amended to read as follows:

‘‘(1)(A) to provide—

‘‘(i) technical, managerial, and informational aids to

small business concerns—

‘‘(I) by advising and counseling on matters in connection with Government procurement and policies,

principles, and practices of good management;

‘‘(II) by cooperating and advising with—

‘‘(aa) voluntary business, professional, educational, and other nonprofit organizations, associations, and institutions (except that the Administration shall take such actions as it determines

necessary to ensure that such cooperation does not

constitute or imply an endorsement by the Administration of the organization or its products or

services, and shall ensure that it receives appropriate recognition in all printed materials); and

‘‘(bb) other Federal and State agencies;

‘‘(III) by maintaining a clearinghouse for information on managing, financing, and operating small

business enterprises; and

‘‘(IV) by disseminating such information, including

through recognition events, and by other activities that

the Administration determines to be appropriate; and

‘‘(ii) through cooperation with a profit-making concern

(referred to in this paragraph as a ‘cosponsor’), training, information, and education to small business concerns, except

that the Administration shall—

‘‘(I) take such actions as it determines to be appropriate to ensure that—

‘‘(aa) the Administration receives appropriate

recognition and publicity;

‘‘(bb) the cooperation does not constitute or

imply an endorsement by the Administration of

any product or service of the cosponsor;

‘‘(cc) unnecessary promotion of the products or

services of the cosponsor is avoided; and

‘‘(dd) utilization of any 1 cosponsor in a marketing area is minimized; and

‘‘(II) develop an agreement, executed on behalf of

the Administration by an employee of the Administration in Washington, the District of Columbia, that provides, at a minimum, that—

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‘‘(aa) any printed material to announce the cosponsorship or to be distributed at the cosponsored

activity, shall be approved in advance by the Administration;

‘‘(bb) the terms and conditions of the cooperation shall be specified;

‘‘(cc) only minimal charges may be imposed on

any small business concern to cover the direct costs

of providing the assistance;

‘‘(dd) the Administration may provide to the

cosponsorship mailing labels, but not lists of

names and addresses of small business concerns

compiled by the Administration;

‘‘(ee) all printed materials containing the

names of both the Administration and the cosponsor shall include a prominent disclaimer that the

cooperation does not constitute or imply an endorsement by the Administration of any product or

service of the cosponsor; and

‘‘(ff) the Administration shall ensure that it receives appropriate recognition in all cosponsorship

printed materials.’’.

(b) EXTENSION OF COSPONSORSHIP AUTHORITY.—Section

401(a)(2) of the Small Business Administration Reauthorization

and Amendments Act of 1994 (15 U.S.C. 637 note) is amended by

striking ‘‘September 30, 2000’’ and inserting ‘‘September 30, 2003’’.

TITLE VI—HUBZONE PROGRAM

Subtitle A—HUBZones in Native America

SEC. 601. SHORT TITLE.

This subtitle may be cited as the ‘‘HUBZones in Native America

Act of 2000’’.

SEC. 602. HUBZONE SMALL BUSINESS CONCERN.

Section 3(p)(3) of the Small Business Act (15 U.S.C. 632(p)(3))

is amended to read as follows:

‘‘(3) HUBZONE SMALL BUSINESS CONCERN.—The term

‘HUBZone small business concern’ means—

‘‘(A) a small business concern that is owned and controlled by 1 or more persons, each of whom is a United

States citizen;

‘‘(B) a small business concern that is—

‘‘(i) an Alaska Native Corporation owned and controlled by Natives (as determined pursuant to section

29(e)(1) of the Alaska Native Claims Settlement Act (43

U.S.C. 1626(e)(1))); or

‘‘(ii) a direct or indirect subsidiary corporation,

joint venture, or partnership of an Alaska Native Corporation qualifying pursuant to section 29(e)(1) of the

Alaska Native Claims Settlement Act (43 U.S.C.

1626(e)(1)), if that subsidiary, joint venture, or partnership is owned and controlled by Natives (as determined

1086

pursuant to section 29(e)(2)) of the Alaska Native

Claims Settlement Act (43 U.S.C. 1626(e)(2))); or

‘‘(C) a small business concern—

‘‘(i) that is wholly owned by 1 or more Indian tribal governments, or by a corporation that is wholly

owned by 1 or more Indian tribal governments; or

‘‘(ii) that is owned in part by 1 or more Indian

tribal governments, or by a corporation that is wholly

owned by 1 or more Indian tribal governments, if all

other owners are either United States citizens or small

business concerns.’’.

SEC. 603. QUALIFIED HUBZONE SMALL BUSINESS CONCERN.

(a) IN GENERAL.—Section 3(p)(5)(A)(i) of the Small Business

Act (15 U.S.C. 632(p)(5)(A)(i)) is amended by striking subclauses (I)

and (II) and inserting the following:

‘‘(I) it is a HUBZone small business concern—

‘‘(aa) pursuant to subparagraph (A) or (B)

of paragraph (3), and that its principal office

is located in a HUBZone and not fewer than

35 percent of its employees reside in a

HUBZone; or

‘‘(bb) pursuant to paragraph (3)(C), and

not fewer than 35 percent of its employees engaged in performing a contract awarded to the

small business concern on the basis of a preference provided under section 31(b) reside

within any Indian reservation governed by 1

or more of the tribal government owners, or reside within any HUBZone adjoining any such

Indian reservation;

‘‘(II) the small business concern will attempt to

maintain the applicable employment percentage

under subclause (I) during the performance of any

contract awarded to the small business concern on

the basis of a preference provided under section

31(b); and’’.

(b) CLARIFYING AMENDMENT.—Section 3(p)(5)(D)(i) of the Small

Business Act (15 U.S.C. 632(p)(5)(D)(i)) is amended by inserting

‘‘once the Administrator has made the certification required by subparagraph (A)(i) regarding a qualified HUBZone small business

concern and has determined that subparagraph (A)(ii) does not

apply to that concern,’’ before ‘‘include’’.

SEC. 604. OTHER DEFINITIONS.

Section 3(p) of the Small Business Act (15 U.S.C. 632(p)) is

amended by adding at the end the following:

‘‘(6) NATIVE AMERICAN SMALL BUSINESS CONCERNS.—

‘‘(A) ALASKA NATIVE CORPORATION.—The term ‘Alaska

Native Corporation’ has the same meaning as the term ‘Native Corporation’ in section 3 of the Alaska Native Claims

Settlement Act (43 U.S.C. 1602).

‘‘(B) ALASKA NATIVE VILLAGE.—The term ‘Alaska Native

Village’ has the same meaning as the term ‘Native village’

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in section 3 of the Alaska Native Claims Settlement Act (43

U.S.C. 1602).

‘‘(C) INDIAN RESERVATION.—The term ‘Indian

reservation’—

‘‘(i) has the same meaning as the term ‘Indian

country’ in section 1151 of title 18, United States Code,

except that such term does not include—

‘‘(I) any lands that are located within a State

in which a tribe did not exercise governmental jurisdiction on the date of enactment of this paragraph, unless that tribe is recognized after that

date of enactment by either an Act of Congress or

pursuant to regulations of the Secretary of the Interior for the administrative recognition that an

Indian group exists as an Indian tribe (part 83 of

title 25, Code of Federal Regulations); and

‘‘(II) lands taken into trust or acquired by an

Indian tribe after the date of enactment of this

paragraph if such lands are not located within the

external boundaries of an Indian reservation or

former reservation or are not contiguous to the

lands held in trust or restricted status on that date

of enactment; and

‘‘(ii) in the State of Oklahoma, means lands that—

‘‘(I) are within the jurisdictional areas of an

Oklahoma Indian tribe (as determined by the Secretary of the Interior); and

‘‘(II) are recognized by the Secretary of the Interior as eligible for trust land status under part

151 of title 25, Code of Federal Regulations (as in

effect on the date of enactment of this paragraph).’’.

Subtitle B—Other HUBZone Provisions

SEC. 611. DEFINITIONS.

(a) QUALIFIED CENSUS TRACT.—Section 3(p)(4)(A) of the Small

Business Act (15 U.S.C. 632(p)(4)(A)) is amended by striking ‘‘(I)’’.

(b) QUALIFIED NONMETROPOLITAN COUNTY.—Section 3(p)(4) of

the Small Business Act (15 U.S.C. 632(p)(4)) is amended by striking

subparagraph (B) and inserting the following:

‘‘(B) QUALIFIED NONMETROPOLITAN COUNTY.—The term

‘qualified nonmetropolitan county’ means any county—

‘‘(i) that was not located in a metropolitan statistical area (as defined in section 143(k)(2)(B) of the Internal Revenue Code of 1986) at the time of the most

recent census taken for purposes of selecting qualified

census tracts under section 42(d)(5)(C)(ii) of the Internal Revenue Code of 1986; and

‘‘(ii) in which—

‘‘(I) the median household income is less than

80 percent of the nonmetropolitan State median

household income, based on the most recent data

available from the Bureau of the Census of the Department of Commerce; or

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‘‘(II) the unemployment rate is not less than

140 percent of the Statewide average unemployment rate for the State in which the county is located, based on the most recent data available

from the Secretary of Labor.’’.

SEC. 612. ELIGIBLE CONTRACTS.

(a) COMMODITIES CONTRACTS.—Section 31(b)(3) of the Small

Business Act (15 U.S.C. 657a(b)(3)) is amended—

(1) by striking ‘‘In any’’ and inserting the following:

‘‘(A) IN GENERAL.—Subject to subparagraph (B), in

any’’; and

(2) by adding at the end the following:

‘‘(B) PROCUREMENT OF COMMODITIES.—For purchases

by the Secretary of Agriculture of agricultural commodities,

the price evaluation preference shall be—

‘‘(i) 10 percent, for the portion of a contract to be

awarded that is not greater than 25 percent of the total

volume being procured for each commodity in a single

invitation;

‘‘(ii) 5 percent, for the portion of a contract to be

awarded that is greater than 25 percent, but not greater than 40 percent, of the total volume being procured

for each commodity in a single invitation; and

‘‘(iii) zero, for the portion of a contract to be awarded that is greater than 40 percent of the total volume

being procured for each commodity in a single invitation.

‘‘(C) TREATMENT OF PREFERENCE.—A contract awarded

to a HUBZone small business concern under a preference

described in subparagraph (B) shall not be counted toward

the fulfillment of any requirement partially set aside for

competition restricted to small business concerns.’’.

(b) DEFINITIONS.—Section 3(p) of the Small Business Act (15

U.S.C. 632(p)), as amended by this Act, is amended—

(1) in paragraph (5)(A)(i)(III)—

(A) in item (aa), by striking ‘‘and’’ at the end; and

(B) by adding at the end the following:

‘‘(cc) in the case of a contract for the procurement by the Secretary of Agriculture of agricultural commodities, none of the commodity

being procured will be obtained by the prime

contractor through a subcontract for the purchase of the commodity in substantially the

final form in which it is to be supplied to the

Government; and’’; and

(2) by adding at the end the following:

‘‘(7) AGRICULTURAL COMMODITY.—The term ‘agricultural

commodity’ has the same meaning as in section 102 of the Agricultural Trade Act of 1978 (7 U.S.C. 5602).’’.

SEC. 613. HUBZONE REDESIGNATED AREAS.

Section 3(p) of the Small Business Act (15 U.S.C. 632(p)) is

amended—

(1) in paragraph (1)—

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(A) in subparagraph (B), by striking ‘‘or’’ at the end;

(B) in subparagraph (C), by striking the period at the

end and inserting ‘‘; or’’; and

(C) by adding at the end the following:

‘‘(D) redesignated areas.’’; and

(2) in paragraph (4), by adding at the end the following:

‘‘(C) REDESIGNATED AREA.—The term ‘redesignated

area’ means any census tract that ceases to be qualified

under subparagraph (A) and any nonmetropolitan county

that ceases to be qualified under subparagraph (B), except

that a census tract or a nonmetropolitan county may be a

‘redesignated area’ only for the 3-year period following the

date on which the census tract or nonmetropolitan county

ceased to be so qualified.’’.

SEC. 614. COMMUNITY DEVELOPMENT.

Section 3(p) of the Small Business Act (15 U.S.C. 632(p)), as

amended by this Act, is amended—

(1) in paragraph (3)—

(A) in subparagraph (B), by striking ‘‘or’’ at the end;

(B) in subparagraph (C), by striking the period at the

end and inserting ‘‘; or’’; and

(C) by adding at the end the following:

‘‘(D) a small business concern that is—

‘‘(i) wholly owned by a community development

corporation that has received financial assistance

under Part 1 of Subchapter A of the Community Economic Development Act of 1981 (42 U.S.C. 9805 et

seq.); or

‘‘(ii) owned in part by 1 or more community development corporations, if all other owners are either

United States citizens or small business concerns.’’;

and

(2) in paragraph (5)(A)(i)(I)(aa), by striking ‘‘subparagraph

(A) or (B)’’ and inserting ‘‘subparagraph (A), (B), or (D)’’.

SEC. 615. REFERENCE CORRECTIONS.

(a) SECTION 3.—Section 3(p)(5)(C) of the Small Business Act (15

U.S.C. 632(p)(5)(C)) is amended by striking ‘‘subclause (IV) and (V)

of subparagraph (A)(i)’’ and inserting ‘‘items (aa) and (bb) of subparagraph (A)(i)(III)’’.

(b) SECTION 8.—Section 8(d)(4)(D) of the Small Business Act

(15 U.S.C. 637(d)(4)(D)) is amended by inserting ‘‘qualified

HUBZone small business concerns,’’ after ‘‘small business concerns,’’.

TITLE VII—NATIONAL WOMEN’S BUSINESS COUNCIL

REAUTHORIZATION

SEC. 701. SHORT TITLE.

This title may be cited as the ‘‘National Women’s Business

Council Reauthorization Act of 2000’’.

SEC. 702. MEMBERSHIP OF THE COUNCIL.

Section 407 of the Women’s Business Ownership Act of 1988 (15

U.S.C. 631 note) is amended—

1090

(1) in subsection (a), by striking ‘‘Not later’’ and all that follows through ‘‘the President’’ and inserting ‘‘The President’’;

(2) in subsection (b)—

(A) by striking ‘‘Not later’’ and all that follows through

‘‘the Administrator’’ and inserting ‘‘The Administrator’’;

and

(B) by striking ‘‘the Assistant Administrator of the Office of Women’s Business Ownership and’’;

(3) in subsection (d), by striking ‘‘, except that’’ and all that

follows through the end of the subsection and inserting a period; and

(4) in subsection (h), by striking ‘‘Not later’’ and all that

follows through ‘‘the Administrator’’ and inserting ‘‘The Administrator’’.

SEC. 703. REPEAL OF PROCUREMENT PROJECT.

Section 409 of the Women’s Business Ownership Act of 1988 (15

U.S.C. 631 note) is repealed.

SEC. 704. STUDIES AND OTHER RESEARCH.

Section 410 of the Women’s Business Ownership Act of 1988 (15

U.S.C. 631 note) is amended to read as follows:

‘‘SEC. 409. STUDIES AND OTHER RESEARCH.

‘‘(a) IN GENERAL.—The Council may conduct such studies and

other research relating to the award of Federal prime contracts and

subcontracts to women-owned businesses, to access to credit and investment capital by women entrepreneurs, or to other issues relating

to women-owned businesses, as the Council determines to be appropriate.

‘‘(b) CONTRACT AUTHORITY.—In conducting any study or other

research under this section, the Council may contract with 1 or

more public or private entities.’’.

SEC. 705. AUTHORIZATION OF APPROPRIATIONS.

Section 411 of the Women’s Business Ownership Act of 1988 (15

U.S.C. 631 note) is amended to read as follows:

‘‘SEC. 410. AUTHORIZATION OF APPROPRIATIONS.

‘‘(a) IN GENERAL.—There is authorized to be appropriated to

carry out this title $1,000,000, for each of fiscal years 2001 through

2003, of which $550,000 shall be available in each such fiscal year

to carry out section 409.

‘‘(b) BUDGET REVIEW.—No amount made available under this

section for any fiscal year may be obligated or expended by the

Council before the date on which the Council reviews and approves

the operating budget of the Council to carry out the responsibilities

of the Council for that fiscal year.’’.

TITLE VIII—MISCELLANEOUS PROVISIONS

SEC. 801. LOAN APPLICATION PROCESSING.

(a) STUDY.—The Administrator of the Small Business Administration shall conduct a study to determine the average time that the

Administration requires to process an application for each type of

loan or loan guarantee made under the Small Business Act (15

U.S.C. 631 et seq.).

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(b) TRANSMITTAL.—Not later than 1 year after the date of enactment of this Act, the Administrator shall transmit to Congress the

results of the study conducted under subsection (a).

SEC. 802. APPLICATION OF OWNERSHIP REQUIREMENTS.

(a) SMALL BUSINESS ACT.—Section 7(a) of the Small Business

Act (15 U.S.C. 636(a)) is amended by adding at the end the following:

‘‘(30) OWNERSHIP REQUIREMENTS.—Ownership requirements to determine the eligibility of a small business concern

that applies for assistance under any credit program under this

Act shall be determined without regard to any ownership interest of a spouse arising solely from the application of the community property laws of a State for purposes of determining marital interests.’’.

(b) SMALL BUSINESS INVESTMENT ACT OF 1958.—Section 502 of

the Small Business Investment Act of 1958 (15 U.S.C. 696) is

amended by adding at the end the following:

‘‘(6) OWNERSHIP REQUIREMENTS.—Ownership requirements

to determine the eligibility of a small business concern that applies for assistance under any credit program under this title

shall be determined without regard to any ownership interest of

a spouse arising solely from the application of the community

property laws of a State for purposes of determining marital interests.’’.

SEC. 803. SUBCONTRACTING PREFERENCE FOR VETERANS.

Section 8(d) of the Small Business Act (15 U.S.C. 637(d)) is

amended—

(1) in paragraph (1), by inserting ‘‘small business concerns

owned and controlled by veterans,’’ after ‘‘small business concerns,’’ the first place that term appears in each of the first and

second sentences;

(2) in paragraph (3)—

(A) in subparagraph (A), by inserting ‘‘small business

concerns owned and controlled by service-disabled veterans,’’ after ‘‘small business concerns owned and controlled

by veterans,’’ in each of the first and second sentences; and

(B) in subparagraph (F), by inserting ‘‘small business

concern owned and controlled by service-disabled veterans,’’

after ‘‘small business concern owned and controlled by veterans,’’; and

(3) in each of paragraphs (4)(D), (4)(E), (6)(A), (6)(C),

(6)(F), and (10)(B), by inserting ‘‘small business concerns owned

and controlled by service-disabled veterans,’’ after ‘‘small business concerns owned and controlled by veterans,’’.

SEC. 804. SMALL BUSINESS DEVELOPMENT CENTER PROGRAM FUNDING.

(a) AUTHORIZATION.—

(1) IN GENERAL.—Section 20(a)(1) of the Small Business

Act (15 U.S.C. 631 note) is amended by striking ‘‘For fiscal year

1985’’ and all that follows through ‘‘expended.’’ and inserting

the following: ‘‘For fiscal year 2000 and each fiscal year thereafter, there are authorized to be appropriated such sums as may

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be necessary and appropriate, to remain available until expended, and to be available solely—

‘‘(A) to carry out the Small Business Development Center

Program under section 21, but not to exceed the annual funding

level, as specified in section 21(a);

‘‘(B) to pay the expenses of the National Small Business Development Center Advisory Board, as provided in section 21(i);

‘‘(C) to pay the expenses of the information sharing system,

as provided in section 21(c)(8);

‘‘(D) to pay the expenses of the association referred to in section 21(a)(3)(A) for conducting the certification program, as provided in section 21(k)(2); and

‘‘(E) to pay the expenses of the Administration, including

salaries of examiners, for conducting examinations as part of

the certification program conducted by the association referred

to in section 21(a)(3)(A).’’.

(2) TECHNICAL AMENDMENT.—Section 20(a) of the Small

Business Act (15 U.S.C. 631 note) is amended by moving the

margins of paragraphs (3) and (4), including subparagraphs

(A) and (B) of paragraph (4), 2 ems to the left.

(b) FUNDING FORMULA.—Section 21(a)(4)(C) of the Small Business Act (15 U.S.C. 648(a)(4)(C)) is amended to read as follows:

‘‘(C) FUNDING FORMULA.—

‘‘(i) IN GENERAL.—Subject to clause (iii), the amount of

a formula grant received by a State under this subparagraph shall be equal to an amount determined in accordance with the following formula:

‘‘(I) The annual amount made available under section 20(a) for the Small Business Development Center

Program, less any reductions made for expenses authorized by clause (v) of this subparagraph, shall be divided on a pro rata basis, based on the percentage of

the population of each State, as compared to the population of the United States.

‘‘(II) If the pro rata amount calculated under subclause (I) for any State is less than the minimum funding level under clause (iii), the Administration shall

determine the aggregate amount necessary to achieve

that minimum funding level for each such State.

‘‘(III) The aggregate amount calculated under subclause (II) shall be deducted from the amount calculated under subclause (I) for States eligible to receive

more than the minimum funding level. The deductions

shall be made on a pro rata basis, based on the population of each such State, as compared to the total population of all such States.

‘‘(IV) The aggregate amount deducted under subclause (III) shall be added to the grants of those States

that are not eligible to receive more than the minimum

funding level in order to achieve the minimum funding

level for each such State, except that the eligible

amount of a grant to any State shall not be reduced to

an amount below the minimum funding level.

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‘‘(ii) GRANT DETERMINATION.—The amount of a grant

that a State is eligible to apply for under this subparagraph shall be the amount determined under clause (i),

subject to any modifications required under clause (iii), and

shall be based on the amount available for the fiscal year

in which performance of the grant commences, but not including amounts distributed in accordance with clause (iv).

The amount of a grant received by a State under any provision of this subparagraph shall not exceed the amount of

matching funds from sources other than the Federal Government, as required under subparagraph (A).

‘‘(iii) MINIMUM FUNDING LEVEL.—The amount of the

minimum funding level for each State shall be determined

for each fiscal year based on the amount made available for

that fiscal year to carry out this section, as follows:

‘‘(I) If the amount made available is not less than

$81,500,000 and not more than $90,000,000, the minimum funding level shall be $500,000.

‘‘(II) If the amount made available is less than

$81,500,000, the minimum funding level shall be the

remainder of $500,000 minus a percentage of $500,000

equal to the percentage amount by which the amount

made available is less than $81,500,000.

‘‘(III) If the amount made available is more than

$90,000,000, the minimum funding level shall be the

sum of $500,000 plus a percentage of $500,000 equal

to the percentage amount by which the amount made

available exceeds $90,000,000.

‘‘(iv) DISTRIBUTIONS.—Subject to clause (iii), if any

State does not apply for, or use, its full funding eligibility

for a fiscal year, the Administration shall distribute the remaining funds as follows:

‘‘(I) If the grant to any State is less than the

amount received by that State in fiscal year 2000, the

Administration shall distribute such remaining funds,

on a pro rata basis, based on the percentage of shortage of each such State, as compared to the total

amount of such remaining funds available, to the extent necessary in order to increase the amount of the

grant to the amount received by that State in fiscal

year 2000, or until such funds are exhausted, whichever first occurs.

‘‘(II) If any funds remain after the application of

subclause (I), the remaining amount may be distributed as supplemental grants to any State, as the Administration determines, in its discretion, to be appropriate, after consultation with the association referred

to in subsection (a)(3)(A).

‘‘(v) USE OF AMOUNTS.—

‘‘(I) IN GENERAL.—Of the amounts made available

in any fiscal year to carry out this section—

‘‘(aa) not more than $500,000 may be used by

the Administration to pay expenses enumerated in

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subparagraphs (B) through (D) of section 20(a)(1);

and

‘‘(bb) not more than $500,000 may be used by

the Administration to pay the examination expenses enumerated in section 20(a)(1)(E).

‘‘(II) LIMITATION.—No funds described in subclause (I) may be used for examination expenses under

section 20(a)(1)(E) if the usage would reduce the

amount of grants made available under clause (i)(I) of

this subparagraph to less than $85,000,000 (after excluding any amounts provided in appropriations Acts

for specific institutions or for purposes other than the

general small business development center program) or

would further reduce the amount of such grants below

such amount.

‘‘(vi) EXCLUSIONS.—Grants provided to a State by the

Administration or another Federal agency to carry out subsection (a)(6) or (c)(3)(G), or for supplemental grants set

forth in clause (iv)(II) of this subparagraph, shall not be included in the calculation of maximum funding for a State

under clause (ii) of this subparagraph.

‘‘(vii) AUTHORIZATION OF APPROPRIATIONS.—There is

authorized to be appropriated to carry out this subparagraph $125,000,000 for each of fiscal years 2001, 2002, and

2003.

‘‘(viii) STATE DEFINED.—In this subparagraph, the term

‘State’ means each of the several States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, and American Samoa.’’.

SEC. 805. SURETY BONDS.

(a) CONTRACT AMOUNTS.—Section 411 of the Small Business

Investment Act of 1958 (15 U.S.C. 694b) is amended—

(1) in subsection (a)(1), by striking ‘‘$1,250,000’’ and inserting ‘‘$2,000,000’’; and

(2) in subsection (e)(2), by striking ‘‘$1,250,000’’ and inserting ‘‘$2,000,000’’.

(b) EXTENSION OF CERTAIN AUTHORITY.—Section 207 of the

Small Business Administration Reauthorization and Amendment

Act of 1988 (15 U.S.C. 694b note) is amended by striking ‘‘2000’’

and inserting ‘‘2003’’.

SEC. 806. SIZE STANDARDS.

(a) INDUSTRY CLASSIFICATIONS.—Section 15(a) of the Small

Business Act (15 U.S.C. 644(a)) is amended in the eighth sentence,

by striking ‘‘four-digit standard’’ and all that follows through ‘‘published’’ and inserting ‘‘definition of a ‘United States industry’ under

the North American Industry Classification System, as established’’.

(b) ANNUAL RECEIPTS.—Section 3(a)(1) of the Small Business

Act (15 U.S.C. 632(a)(1)) is amended by striking ‘‘$500,000’’ and inserting ‘‘$750,000’’.

SEC. 807. NATIVE HAWAIIAN ORGANIZATIONS UNDER SECTION 8(a).

Section 8(a)(15)(A) of the Small Business Act (15 U.S.C.

637(a)(15)(A)) is amended to read as follows:

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‘‘(A) is a nonprofit corporation that has filed articles of incorporation with the director (or the designee thereof) of the Hawaii Department of Commerce and Consumer Affairs, or any

successor agency,’’.

SEC. 808. NATIONAL VETERANS BUSINESS DEVELOPMENT CORPORATION CORRECTION.

Section 33(k) of the Small Business Act (15 U.S.C. 657c(k)) is

amended—

(1) by striking paragraph (1) and inserting the following:

‘‘(1) IN GENERAL.—Subject to paragraph (2), there are authorized to be appropriated to the Corporation to carry out this

section—

‘‘(A) $4,000,000 for fiscal year 2001;

‘‘(B) $4,000,000 for fiscal year 2002;

‘‘(C) $2,000,000 for fiscal year 2003; and

‘‘(D) $2,000,000 for fiscal year 2004.’’;

(2) in paragraph (2)(A), by striking ‘‘2001’’ each place it appears and inserting ‘‘2002’’; and

(3) in paragraph (2)(B), by striking ‘‘2002 or 2003’’ and inserting ‘‘2003 or 2004’’.

SEC. 809. PRIVATE SECTOR RESOURCES FOR SCORE.

Section 8(b)(1)(B) of the Small Business Act (15 U.S.C.

637(b)(1)(B)) is amended by adding at the end the following: ‘‘Notwithstanding any other provision of law, SCORE may solicit cash

and in-kind contributions from the private sector to be used to carry

out its functions under this Act, and may use payments made by the

Administration pursuant to this subparagraph for such solicitation.’’.

SEC. 810. CONTRACT DATA COLLECTION.

Section 15 of the Small Business Act (15 U.S.C. 644) is amended by adding at the end the following new subsection:

‘‘(p) DATABASE, ANALYSIS, AND ANNUAL REPORT WITH RESPECT

TO BUNDLED CONTRACTS.—

‘‘(1) BUNDLED CONTRACT DEFINED.—In this subsection, the

term ‘bundled contract’ has the meaning given such term in section 3(o)(1).

‘‘(2) DATABASE.—

‘‘(A) IN GENERAL.—Not later than 180 days after the

date of the enactment of this subsection, the Administrator

of the Small Business Administration shall develop and

shall thereafter maintain a database containing data and

information regarding—

‘‘(i) each bundled contract awarded by a Federal

agency; and

‘‘(ii) each small business concern that has been displaced as a prime contractor as a result of the award

of such a contract.

‘‘(3) ANALYSIS.—For each bundled contract that is to be recompeted as a bundled contract, the Administrator shall

determine—

‘‘(A) the amount of savings and benefits (in accordance

with subsection (e)) achieved under the bundling of contract

requirements; and

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‘‘(B) whether such savings and benefits will continue to

be realized if the contract remains bundled, and whether

such savings and benefits would be greater if the procurement requirements were divided into separate solicitations

suitable for award to small business concerns.

‘‘(4) ANNUAL REPORT ON CONTRACT BUNDLING.— ‘‘(A) IN GENERAL.—Not later than 1 year after the date

of the enactment of this paragraph, and annually in March

thereafter, the Administration shall transmit a report on

contract bundling to the Committees on Small Business of

the House of Representatives and the Senate.

‘‘(B) CONTENTS.—Each report transmitted under subparagraph (A) shall include—

‘‘(i) data on the number, arranged by industrial

classification, of small business concerns displaced as

prime contractors as a result of the award of bundled

contracts by Federal agencies; and

‘‘(ii) a description of the activities with respect to

previously bundled contracts of each Federal agency

during the preceding year, including—

‘‘(I) data on the number and total dollar

amount of all contract requirements that were bundled; and

‘‘(II) with respect to each bundled contract,

data or information on—

‘‘(aa) the justification for the bundling of

contract requirements;

‘‘(bb) the cost savings realized by bundling

the contract requirements over the life of the

contract;

‘‘(cc) the extent to which maintaining the

bundled status of contract requirements is projected to result in continued cost savings;

‘‘(dd) the extent to which the bundling of

contract requirements complied with the contracting agency’s small business subcontracting plan, including the total dollar value

awarded to small business concerns as subcontractors and the total dollar value previously awarded to small business concerns as

prime contractors; and

‘‘(ee) the impact of the bundling of contract requirements on small business concerns

unable to compete as prime contractors for the

consolidated requirements and on the industries of such small business concerns, including a description of any changes to the proportion of any such industry that is composed of

small business concerns.

‘‘(5) ACCESS TO DATA.—

‘‘(A) FEDERAL PROCUREMENT DATA SYSTEM.—To assist

in the implementation of this section, the Administration

shall have access to information collected through the Federal Procurement Data System.

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‘‘(B) AGENCY PROCUREMENT DATA SOURCES.—To assist

in the implementation of this section, the head of each contracting agency shall provide, upon request of the Administration, procurement information collected through existing

agency data collection sources.’’.

SEC. 811. PROCUREMENT PROGRAM FOR WOMEN-OWNED SMALL BUSINESS CONCERNS.

Section 8 of the Small Business Act (15 U.S.C. 637) is amended

by adding at the end the following:

‘‘(m) PROCUREMENT PROGRAM FOR WOMEN-OWNED SMALL BUSINESS CONCERNS.—

‘‘(1) DEFINITIONS.—In this subsection, the following definitions apply:

‘‘(A) CONTRACTING OFFICER.—The term ‘contracting officer’ has the meaning given such term in section 27(f)(5) of

the Office of Federal Procurement Policy Act (41 U.S.C.

423(f)(5)).

‘‘(B) SMALL BUSINESS CONCERN OWNED AND CONTROLLED BY WOMEN.—The term ‘small business concern

owned and controlled by women’ has the meaning given

such term in section 3(n), except that ownership shall be determined without regard to any community property law.

‘‘(2) AUTHORITY TO RESTRICT COMPETITION.—In accordance

with this subsection, a contracting officer may restrict competition for any contract for the procurement of goods or services by

the Federal Government to small business concerns owned and

controlled by women, if—

‘‘(A) each of the concerns is not less than 51 percent

owned by 1 or more women who are economically disadvantaged (and such ownership is determined without regard to any community property law);

‘‘(B) the contracting officer has a reasonable expectation

that 2 or more small business concerns owned and controlled by women will submit offers for the contract;

‘‘(C) the contract is for the procurement of goods or

services with respect to an industry identified by the Administrator pursuant to paragraph (3);

‘‘(D) the anticipated award price of the contract (including options) does not exceed—

‘‘(i) $5,000,000, in the case of a contract assigned

an industrial classification code for manufacturing; or

‘‘(ii) $3,000,000, in the case of all other contracts;

‘‘(E) in the estimation of the contracting officer, the contract award can be made at a fair and reasonable price;

and

‘‘(F) each of the concerns—

‘‘(i) is certified by a Federal agency, a State government, or a national certifying entity approved by the

Administrator, as a small business concern owned and

controlled by women; or

‘‘(ii) certifies to the contracting officer that it is a

small business concern owned and controlled by

women and provides adequate documentation, in acVerDate 11-MAY-2000 19:35 Dec 21, 2000 Jkt 067191 PO 00000 Frm 01101 Fmt 6601 Sfmt 6603 E:\HR\OC\HR1033.009 pfrm01 PsN: HR1033
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cordance with standards established by the Administration, to support such certification.

‘‘(3) WAIVER.—With respect to a small business concern

owned and controlled by women, the Administrator may waive

subparagraph (2)(A) if the Administrator determines that the

concern is in an industry in which small business concerns

owned and controlled by women are substantially underrepresented.

‘‘(4) IDENTIFICATION OF INDUSTRIES.—The Administrator

shall conduct a study to identify industries in which small

business concerns owned and controlled by women are underrepresented with respect to Federal procurement contracting.

‘‘(5) ENFORCEMENT; PENALTIES.— ‘‘(A) VERIFICATION OF ELIGIBILITY.—In carrying out

this subsection, the Administrator shall establish procedures relating to—

‘‘(i) the filing, investigation, and disposition by the

Administration of any challenge to the eligibility of a

small business concern to receive assistance under this

subsection (including a challenge, filed by an interested

party, relating to the veracity of a certification made or

information provided to the Administration by a small

business concern under paragraph (2)(F)); and

‘‘(ii) verification by the Administrator of the accuracy of any certification made or information provided

to the Administration by a small business concern

under paragraph (2)(F).

‘‘(B) EXAMINATIONS.—The procedures established under

subparagraph (A) may provide for program examinations

(including random program examinations) by the Administrator of any small business concern making a certification

or providing information to the Administrator under paragraph (2)(F).

‘‘(C) PENALTIES.—In addition to the penalties described

in section 16(d), any small business concern that is determined by the Administrator to have misrepresented the status of that concern as a small business concern owned and

controlled by women for purposes of this subsection, shall

be subject to—

‘‘(i) section 1001 of title 18, United States Code;

and

‘‘(ii) sections 3729 through 3733 of title 31, United

States Code.

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‘‘(6) PROVISION OF DATA.—Upon the request of the Administrator, the head of any Federal department or agency shall

promptly provide to the Administrator such information as the

Administrator determines to be necessary to carry out this subsection.’’.

JOHN EDWARD PORTER, C.W. BILL YOUNG, HENRY BONILLA, ERNEST J. ISTOOK, Jr.,

DAN MILLER, JAY DICKEY, ROGER F. WICKER, ANNE M. NORTHUP, RANDY ‘‘DUKE’’ CUNNINGHAM, DAVID R. OBEY, STENY H. HOYER, NANCY PELOSI, NITA M. LOWEY, ROSA L. DELAURO, JESSE L. JACKSON, Jr.,

(Except elimination of

LIHEAP and CCDBG advanced funding; immigration and charitable choice

provisions),

Managers on the Part of the House.

ARLEN SPECTER,

THAD COCHRAN,

SLADE GORTON,

JUDD GREGG,

KAY BAILEY HUTCHISON,

TED STEVENS,

PETE V. DOMENICI,

TOM HARKIN,

ERNEST F. HOLLINGS,

DANIEL K. INOUYE,

HARRY REID,

HERB KOHL,

PATTY MURRAY,

DIANNE FEINSTEIN,

ROBERT C. BYRD,

Managers on the Part of the Senate.

Æ