I

106TH CONGRESS

2D SESSION H. R. 5317

To increase accountability for Government spending and to reduce wasteful

Government spending.

IN THE HOUSE OF REPRESENTATIVES

SEPTEMBER 27, 2000

Mr. DEFAZIO introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committees on Commerce, Armed Services, Science, Resources, Banking and Financial Services, International Relations, Veterans’ Affairs, and Intelligence (Permanent Select), for a period to be subsequently determined by the Speaker,

in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To increase accountability for Government spending and to

reduce wasteful Government spending.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Comprehensive Fiscal Responsibility and Accountability

6 Act of 2000’’.

7 (b) TABLE OF CONTENTS.—The table of contents of

8 this Act is as follows:
2

•HR 5317 IH

Sec. 1. Short title; table of contents.

TITLE I—INCREASED ACCOUNTABILITY AND REDUCTION IN

MEDICARE WASTE AND FRAUD

Sec. 101. Increased medical reviews and antifraud activities.

Sec. 102. Expansion of medicare senior waste patrol nationwide.

Sec. 103. Application of inherent reasonableness to all Part B services other

than physicians’ services.

Sec. 104. Implementation of commercial claims auditing systems.

TITLE II—INCREASED ACCOUNTABILITY AND REDUCTION OF

WASTEFUL DEFENSE SPENDING

Sec. 201. Cancellation of F–22 aircraft program.

Sec. 202. Cancellation of Comanche helicopter program.

Sec. 203. Cancellation of Crusader artillery program.

Sec. 204. Limitation on procurement of Virginia class attack submarines.

Sec. 205. Termination of production of Trident D5 missiles.

Sec. 206. Reduction in nuclear delivery systems within overall limits of START

II.

Sec. 207. Creation of common NATO airlift capability and reduction of United

States costs for C–17 aircraft.

Sec. 208. Deferral of procurement of additional C–130 tactical airlift planes.

Sec. 209. Reduction in requirements for Air Force and Navy pilots in nonflying

positions.

Sec. 210. Reduction in number of officers so as to return to enlisted-to-officer

ratio in existence in 1989.

Sec. 211. Placement of Selective Service System in ‘‘deep standby’’ status.

Sec. 212. End of taxpayer support for defense industry mergers.

Sec. 213. Reduction of United States support for weapons sales abroad by

eliminating future assistance under the Foreign Military Financing program.

Sec. 214. Limitation on proposed increases for National Missile Defense to fiscal year 2000 levels.

Sec. 215. Reduction of Central Intelligence Agency budget by 10 percent.

TITLE III—REDUCTION AND REFORM OF ANTIENVIRONMENTAL

SPENDING

Subtitle A—Program Terminations and Fees

Sec. 301. Nuclear Energy Research Initiative.

Sec. 302. National Ignition Facility.

Sec. 303. Tokamak Fusion Reactors.

Sec. 304. Diesel engine research.

Sec. 305. Nuclear waste fund fee.

Subtitle B—Mining Provisions

Sec. 311. Definitions.

Sec. 312. Royalties.

Sec. 313. Limitation on patent issuance.

Sec. 314. Mining claim maintenance requirements.

Sec. 315. Savings clause.

TITLE IV—AMENDMENTS OF INTERNAL REVENUE CODE OF 1986
3

•HR 5317 IH

Sec. 401. Repeal of exclusion of certain income of foreign sales corporations.

Sec. 402. Denial of deduction for payments of excessive compensation.

Sec. 403. Disallowance of deductions for advertising and promotional expenses

relating to tobacco product use.

Sec. 404. Source of income from certain sales of inventory property.

TITLE V—MISCELLANEOUS PROVISIONS TO REDUCE WASTEFUL

AND INEFFICIENT SPENDING

Sec. 501. International space station.

Sec. 502. Overseas Private Investment Corporation.

Sec. 503. Prohibition on provision of new credit by the Export-Import Bank of

the United States.

Sec. 504. Trade and Development Agency.

Sec. 505. United States international broadcasting.

Sec. 506. Joint procurement of pharmaceuticals by the Department of Defense

and the Department of Veterans Affairs.

1 TITLE I—INCREASED ACCOUNT2 ABILITY AND REDUCTION IN

3 MEDICARE WASTE AND

4 FRAUD

5 SEC. 101. INCREASED MEDICAL REVIEWS AND ANTIFRAUD

6 ACTIVITIES.

7 Section 1893(d) of the Social Security Act (42 U.S.C.

8 1395ddd(d)) is amended by inserting after paragraph (3)

9 the following:

10 ‘‘(4) In the case of the year 2001 and each sub11 sequent year, procedures to ensure that—

12 ‘‘(A) the number of medical reviews, utili13 zation reviews, and fraud reviews in a fiscal

14 year of providers of services and other individ15 uals and entities furnishing items and services

16 for which payment may be made under this title

17 (as a percentage of total claims paid) is equal
4

•HR 5317 IH

1 to at least twice the number of such reviews

2 that were conducted in fiscal year 1999;

3 ‘‘(B) the number of provider cost reports

4 audited in a fiscal year is equal to at least—

5 ‘‘(i) 15 percent of those submitted by

6 a home health agency or a skilled nursing

7 facility; and

8 ‘‘(ii) twice the number of such reports

9 that were audited in fiscal year 1999 for

10 those submitted by any other provider of

11 services or any other individual or entity

12 furnishing items and services for which

13 payment may be made under this title; and

14 ‘‘(C) in determining which providers of

15 services, individuals, entities, or cost reports to

16 review or audit, priority is placed on providers,

17 individuals, entities, and areas that the Sec18 retary determines are subject to abuse and

19 most likely to result in mispayment or overpay20 ment recoveries.’’.

21 SEC. 102. EXPANSION OF MEDICARE SENIOR WASTE PA22 TROL NATIONWIDE.

23 There are authorized to be appropriated $25,000,000

24 in fiscal year 2002, and such sums as are necessary for

25 fiscal years 2003 through 2005, for the purpose of car-
5

•HR 5317 IH

1 rying out, and expanding nationwide, the Health Care

2 Anti-Fraud, Waste and Abuse Community Volunteer

3 Demonstration Projects conducted by the Administration

4 on Aging pursuant to the Omnibus Consolidated Appro5 priations Act, 1997 (Public Law 104–208).

6 SEC. 103. APPLICATION OF INHERENT REASONABLENESS

7 TO ALL PART B SERVICES OTHER THAN PHY8 SICIANS’ SERVICES.

9 (a) REPEAL OF CERTAIN PROVISIONS OF THE BAL10 ANCED BUDGET ACT OF 1997.—

11 (1) REPEAL.—Section 4316 of the Balanced

12 Budget Act of 1997 (Public Law 105–33; 111 Stat.

13 390), and the amendments made by such section,

14 are repealed effective August 5, 1997.

15 (2) APPLICABILITY.—Effective August 5, 1997,

16 the Social Security Act shall be applied and adminis17 tered as if section 4316 of the Balanced Budget Act

18 of 1997 (Public Law 105–33; 111 Stat. 390), and

19 the amendments made by such section, had not been

20 enacted.

21 (b) APPLICATION OF INHERENT REASONABLENESS

22 TO ALL PART B SERVICES OTHER THAN PHYSICIANS’

23 SERVICES.—
6

•HR 5317 IH

1 (1) IN GENERAL.—Section 1842(b)(8) of the

2 Social Security Act (42 U.S.C. 1395u(b)(8)) is

3 amended to read as follows:

4 ‘‘(8) The Secretary shall describe by regulation the

5 factors to be used in determining the cases (of particular

6 items or services) in which the application of this part

7 (other than to physicians’ services paid under section

8 1848) results in the determination of an amount that, be9 cause of its being grossly excessive or grossly deficient,

10 is not inherently reasonable, and provide in those cases

11 for the factors to be considered in establishing an amount

12 that is realistic and equitable.’’.

13 (2) EFFECTIVE DATE.—The amendment made

14 by this subsection shall take effect August 5, 1997.

15 SEC. 104. IMPLEMENTATION OF COMMERCIAL CLAIMS AU16 DITING SYSTEMS.

17 (a) COMMERCIAL CLAIMS AUDITING SYSTEMS.—

18 (1) IN GENERAL.—Not later than 90 days after

19 the date of enactment of this Act, the Secretary

20 shall require medicare carriers to use commercial

21 claims auditing systems in the processing of claims

22 under part B of the medicare program under title

23 XVIII of the Social Security Act (42 U.S.C. 1395j

24 et seq.) for the purpose of identifying billing errors

25 and abuses.
7

•HR 5317 IH

1 (2) SUPPLEMENT TO OTHER TECHNOLOGY.—

2 Commercial claims auditing systems required under

3 paragraph (1) shall be used as a supplement to any

4 other information technology used by medicare car5 riers in processing claims under the medicare pro6 gram.

7 (3) UNIFORMITY.—In order to ensure uni8 formity in processing claims under the medicare pro9 gram, the Secretary may require that medicare car10 riers utilize 1 or more common commercial claims

11 auditing systems, provided that the selection of such

12 system or systems by the Secretary shall be—

13 (A) after due consideration of competing

14 alternative systems; but

15 (B) without regard to any provision of law

16 that requires the use of competitive procedures

17 (as defined in section 4 of the Office of Federal

18 Procurement Policy Act (41 U.S.C. 403)) or

19 the publication of notice of proposed procure20 ments.

21 (4) IMPLEMENTATION.—Commercial claims au22 diting systems required under paragraph (1) shall be

23 implemented by all medicare carriers by not later

24 than 180 days after the date of enactment of this

25 Act.
8

•HR 5317 IH

1 (b) MINIMUM SOFTWARE REQUIREMENTS.—Any

2 commercial claims auditing system required to be imple3 mented pursuant to subsection (a) shall, at a minimum—

4 (1) be a commercial item;

5 (2) surpass the capability of systems currently

6 used in the processing of claims under part B of the

7 medicare program; and

8 (3) be modifiable to—

9 (A) satisfy pertinent statutory require10 ments of the medicare program; and

11 (B) conform to policies of the Secretary re12 garding claims processing under such program.

13 (c) DISCLOSURE.—

14 (1) IN GENERAL.—Except as provided in para15 graph (2), notwithstanding any other provision of

16 law, any information technology (or data related

17 thereto) utilized by medicare carriers in establishing

18 a commercial claims auditing system pursuant to

19 subsection (a) shall not be subject to public disclo20 sure.

21 (2) AUTHORIZED DISCLOSURE.—The Secretary

22 may authorize the public disclosure of the informa23 tion described in paragraph (1) if the Secretary de24 termines that—
9

•HR 5317 IH

1 (A) release of such information is in the

2 public interest; and

3 (B) the information to be released is not

4 protected from disclosure under section 552(b)

5 of title 5, United States Code.

6 (d) DEFINITIONS.—In this section—

7 (1) COMMERCIAL CLAIMS AUDITING SYSTEM.—

8 The term ‘‘commercial claims auditing system’’

9 means a commercial specialized auditing system that

10 includes edits which identify inappropriately coded

11 health care claims.

12 (2) COMMERCIAL ITEM.—The term ‘‘commer13 cial item’’ has the meaning given such term in sec14 tion 4 of the Office of Federal Procurement Policy

15 Act (41 U.S.C. 403).

16 (3) INFORMATION TECHNOLOGY.—The term

17 ‘‘information technology’’ has the meaning given

18 such term in subparagraphs (A) and (B) of section

19 5002(3) of the Information Technology Management

20 Reform Act of 1996 (40 U.S.C. 1401(3)), were such

21 information technology to be acquired by an execu22 tive agency.

23 (4) MEDICARE CARRIER.—The term ‘‘medicare

24 carrier’’ means an entity that has a contract with
10

•HR 5317 IH

1 the Secretary pursuant to section 1842(a) of the So2 cial Security Act (42 U.S.C. 1395u(a)).

3 (5) SECRETARY.—The term ‘‘Secretary’’ means

4 the Secretary of Health and Human Services.

5 TITLE II—INCREASED ACCOUNT6 ABILITY AND REDUCTION OF

7 WASTEFUL DEFENSE SPEND8 ING

9 SEC. 201. CANCELLATION OF F–22 AIRCRAFT PROGRAM.

10 The Secretary of the Air Force shall cancel the F–

11 22 aircraft program. No funds may be obligated for that

12 program after the date of the enactment of this Act.

13 SEC. 202. CANCELLATION OF COMANCHE HELICOPTER

14 PROGRAM.

15 The Secretary of the Army shall cancel the Comanche

16 helicopter program. No funds may be obligated for that

17 program after the date of the enactment of this Act.

18 SEC. 203. CANCELLATION OF CRUSADER ARTILLERY PRO19 GRAM.

20 The Secretary of the Army shall cancel the Crusader

21 artillery program. No funds may be obligated for that pro22 gram after the date of the enactment of this Act.
11

•HR 5317 IH

1 SEC. 204. LIMITATION ON PROCUREMENT OF VIRGINIA

2 CLASS ATTACK SUBMARINES.

3 Through fiscal year 2009, the Secretary of the Navy

4 may enter into contracts for the procurement of no more

5 than eight Virginia class submarines (including contracts

6 entered into before the date of the enactment of this Act).

7 SEC. 205. TERMINATION OF PRODUCTION OF TRIDENT D5

8 MISSILES.

9 No funds may be obligated after the date of the en10 actment of this Act for production of Trident D5 missiles.

11 SEC. 206. REDUCTION IN NUCLEAR DELIVERY SYSTEMS

12 WITHIN OVERALL LIMITS OF START II.

13 The President shall take such steps as necessary to

14 reduce the nuclear delivery systems of the United States

15 so as to bring the number of such systems within the over16 all START II limits. For purposes of this section, the term

17 ‘‘overall START II limits’’ means the limitations on nu18 clear delivery systems that would be in effect under the

19 START II Treaty, if ratified.

20 SEC. 207. CREATION OF COMMON NATO AIRLIFT CAPA21 BILITY AND REDUCTION OF UNITED STATES

22 COSTS FOR C–17 AIRCRAFT.

23 The Secretary of Defense shall seek to reach an

24 agreement with the other member nations of the North

25 Atlantic Treaty Organization to establish a common

26 NATO airlift capability consisting of 20 C–17 aircraft
12

•HR 5317 IH

1 with a cost-sharing arrangement similar to that for the

2 common NATO AWACS fleet. The 20 C–17 aircraft pro3 grammed by the Air Force for procurement in fiscal years

4 2002 and 2003 shall be transferred to NATO for that

5 common NATO airlift capability upon such an agreement

6 being entered into.

7 SEC. 208. DEFERRAL OF PROCUREMENT OF ADDITIONAL C–

8 130 TACTICAL AIRLIFT PLANES.

9 The Secretary of the Air Force may not enter into

10 a contract for procurement of additional C–130 aircraft

11 for fiscal years 2001 through 2005.

12 SEC. 209. REDUCTION IN REQUIREMENTS FOR AIR FORCE

13 AND NAVY PILOTS IN NONFLYING POSITIONS.

14 The Secretary of the Air Force and the Secretary of

15 the Navy shall each evaluate nonflying positions in the Air

16 Force and the Navy, respectively, that are currently re17 quired to be held by pilots and, to the maximum extent

18 practicable, shall modify the qualifications for those posi19 tions to reduce the requirements for pilots for those posi20 tions.

21 SEC. 210. REDUCTION IN NUMBER OF OFFICERS SO AS TO

22 RETURN TO ENLISTED-TO-OFFICER RATIO IN

23 EXISTENCE IN 1989.

24 The Secretary of Defense shall implement a program

25 to reduce the ratio of enlisted-to-officer personnel of each
13

•HR 5317 IH

1 of the Army, Navy, Air Force, and Marine Corps to a ratio

2 of at least six-to-one by not later than January 1, 2005.

3 The Secretary shall carry out that program through re4 ductions in officer promotions to general and flag officer

5 grades and through reductions in the number of officers

6 in pay grades O–4, O–5, and O–6 through voluntary pro7 grams under existing provisions of law, including tem8 porary early retirement authority, voluntary separation in9 centive, and the special separation benefit.

10 SEC. 211. PLACEMENT OF SELECTIVE SERVICE SYSTEM IN

11 ‘‘DEEP STANDBY’’ STATUS.

12 (a) RESTRICTION OF REGISTRATION REQUIREMENT

13 TO PERIODS OF NATIONAL EMERGENCIES.—(1) Section

14 3(a) of the Military Selective Service Act (50 U.S.C. App.

15 453(a)) is amended by inserting after ‘‘this title,’’ the fol16 lowing: ‘‘during any period in which a declaration of na17 tional emergency is in effect,’’.

18 (2) Section 3 of such Act (50 U.S.C. App. 453) is

19 further amended by adding at the end the following new

20 subsections:

21 ‘‘(c) The President shall have the authority to declare

22 a period of national emergency during which the registra23 tion requirements of subsection (a) shall apply. Subject

24 to subsection (d), the President shall provide for the
14

•HR 5317 IH

1 prompt termination of the declaration of national emer2 gency upon the termination of the national emergency.

3 ‘‘(d) A declaration of national emergency under sub4 section (c) shall terminate upon the expiration of a 10-

5 day period of continuous session of Congress after the

6 date of the declaration unless Congress enacts a law before

7 the end of that period ratifying that specific declaration.

8 For purposes of this subsection, the continuity of a session

9 of Congress is broken only by an adjournment of the Con10 gress sine die, and the days on which either House is not

11 in session because of an adjournment of more than three

12 days to a day certain are excluded in the computation of

13 the 10-day period.’’.

14 (3) Section 12 of such Act (50 U.S.C. App. 462) is

15 amended by adding at the end the following new sub16 section:

17 ‘‘(h) In addition to the exception provided by sub18 section (g), a person may not be denied a right, privilege,

19 benefit, or employment position under Federal law on the

20 grounds that the person failed to present himself for and

21 submit to registration under section 3 before the date of

22 the enactment of this subsection.’’.

23 (b) SUSPENSION OF ACTIVITIES OF SELECTIVE

24 SERVICE SYSTEM BOARDS.—Section 17 of such Act (50
15

•HR 5317 IH

1 U.S.C. App. 467) is amended by adding at the end the

2 following new subsection:

3 ‘‘(d) Except during any period in which a declaration

4 of national emergency is in effect under section 3—

5 ‘‘(1) the President may not appoint a person as

6 a member of a civilian local board, civilian appeal

7 board, or similar local agency of the Selective Serv8 ice System; and

9 ‘‘(2) any such board established under section

10 10(b)(3) may not meet.’’.

11 (c) REPORT ON STANDBY REGISTRATION PROGRAM

12 FOR USE DURING NATIONAL EMERGENCIES.—Not later

13 than 150 days after the date of the enactment of this Act,

14 the Director of the Selective Service System shall submit

15 to Congress a report detailing a standby emergency man16 power mobilization program to be used by the Selective

17 Service System during periods in which a declaration of

18 national emergency is in effect for the registration of per19 sons who would be subject to registration under section

20 3 of the Military Selective Service Act (50 U.S.C. App.

21 453) during such a period. The report shall include an

22 estimate of the cost to implement and operate the standby

23 program and an evaluation of the feasibility of using exist24 ing and emerging information systems available to the
16

•HR 5317 IH

1 Government to improve the effectiveness of any registra2 tion requirements.

3 SEC. 212. END OF TAXPAYER SUPPORT FOR DEFENSE IN4 DUSTRY MERGERS.

5 Expenses incurred by a defense contractor related to

6 a corporate merger may not be considered to be an allow7 able cost under a Department of Defense contract, and

8 no funds appropriated to the Department of Defense may

9 be used to reimburse a contractor for any such expense.

10 SEC. 213. REDUCTION OF UNITED STATES SUPPORT FOR

11 WEAPONS SALES ABROAD BY ELIMINATING

12 FUTURE ASSISTANCE UNDER THE FOREIGN

13 MILITARY FINANCING PROGRAM.

14 After the date of the enactment of this Act, no new

15 loan, grant, or other assistance may be provided under the

16 ‘‘Foreign Military Financing Program’’ account under

17 section 23 of the Arms Export Control Act (22 U.S.C.

18 2763).

19 SEC. 214. LIMITATION ON PROPOSED INCREASES FOR NA20 TIONAL MISSILE DEFENSE TO FISCAL YEAR

21 2000 LEVELS.

22 The amount appropriated for the National Missile

23 Defense program of the Department of Defense for any

24 fiscal year may not exceed the amount appropriated for

25 that program for fiscal year 2000, adjusted for inflation.
17

•HR 5317 IH

1 SEC. 215. REDUCTION OF CENTRAL INTELLIGENCE AGENCY

2 BUDGET BY 10 PERCENT.

3 The total amount obligated for programs and activi4 ties of the Central Intelligence Agency for fiscal year 2001

5 may not exceed 90 percent of the total amount obligated

6 for programs and activities of the Central Intelligence

7 Agency for fiscal year 2000.

8 TITLE III—REDUCTION AND RE9 FORM OF ANTIENVIRONMEN

10 TAL SPENDING

11 Subtitle A—Program Terminations

12 and Fees

13 SEC. 301. NUCLEAR ENERGY RESEARCH INITIATIVE.

14 The Department of Energy shall not obligate any fur15 ther funding for the Nuclear Energy Research Initiative.

16 SEC. 302. NATIONAL IGNITION FACILITY.

17 The Department of Energy shall not obligate any fur18 ther funding for the National Ignition Facility.

19 SEC. 303. TOKAMAK FUSION REACTORS.

20 The Department of Energy shall not obligate any fur21 ther funding for Tokamak fusion reactors.

22 SEC. 304. DIESEL ENGINE RESEARCH.

23 The Department of Energy shall not obligate any fur24 ther funding for research on diesel engines for cars and

25 light trucks.
18

•HR 5317 IH

1 SEC. 305. NUCLEAR WASTE FUND FEE.

2 (a) FEE ADJUSTMENT.—Section 302(a)(2) of the

3 Nuclear Waste Policy Act of 1982 is amended by adding

4 at the end the following new sentence: ‘‘The Secretary

5 shall adjust the fee annually for inflation.’’.

6 (b) EFFECTIVE DATE.—The amendment made by

7 subsection (a) shall take effect 90 days after the date of

8 enactment of this section.

9 Subtitle B—Mining Provisions

10 SEC. 311. DEFINITIONS.

11 For purposes of subtitle:

12 (1) The term ‘‘locatable mineral’’ means any

13 mineral not subject to disposition under any of the

14 following:

15 (A) The Mineral Leasing Act (30 U.S.C.

16 181 et seq.).

17 (B) The Geothermal Steam Act of 1970

18 (30 U.S.C. 100 et seq.).

19 (C) The Act of July 31, 1947, commonly

20 known as the Materials Act of 1947 (30 U.S.C.

21 601 et seq.).

22 (D) The Mineral Leasing for Acquired

23 Lands Act (30 U.S.C. 351 et seq.).

24 (2) The term ‘‘mineral activities’’ means any

25 activity for, related to or incidental to mineral explo26 ration, mining, beneficiation and processing activi-
19

•HR 5317 IH

1 ties for any locatable mineral, including access.

2 When used with respect to this term:

3 (A) The term ‘‘exploration’’ means those

4 techniques employed to locate the presence of a

5 locatable mineral deposit and to establish its

6 nature, position, size, shape, grade and value.

7 (B) The term ‘‘mining’’ means the proc8 esses employed for the extraction of a locatable

9 mineral from the earth.

10 (C) The term ‘‘beneficiation’’ means the

11 crushing and grinding of locatable mineral ore

12 and such processes as are employed to free the

13 mineral from other constituents, including but

14 not necessarily limited to, physical and chemical

15 separation techniques.

16 (D) The term ‘‘processing’’ means proc17 esses downstream of beneficiation employed to

18 prepare locatable mineral ore into the final

19 marketable product, including but not limited

20 to, smelting and electrolytic refining.

21 (3) The term ‘‘mining claim’’ means a claim for

22 the purposes of mineral activities.

23 (4) The term ‘‘net smelter return’’ shall have

24 the same meaning as the term defined in section

25 613(c)(1) of the Internal Revenue Code.
20

•HR 5317 IH

1 (5) The term ‘‘Secretary’’ means the Secretary

2 of the Interior acting through the Director of the

3 Minerals Management Service.

4 (6) The term ‘‘substantial underreporting’’

5 means the difference between the royalty on the

6 value of the production which should have been re7 ported and the royalty on the value of the produc8 tion which was reported, if the value which should

9 have been reported is greater than the value which

10 was reported. An underreporting constitutes a ‘‘sub11 stantial underreporting’’ if such difference exceeds

12 10 percent of the royalty on the value of production

13 which should have been reported.

14 SEC. 312. ROYALTIES.

15 (a) RESERVATION OF ROYALTY.—Production of all

16 locatable minerals from any mining claim located or con17 verted under the general mining laws, or mineral con18 centrates or products derived from locatable minerals from

19 any mining claim located or converted under the general

20 mining laws, as the case may be, shall be subject to a

21 royalty of 8 percent of the net smelter return from such

22 production. The claim holder and any operator to whom

23 the claim holder has assigned the obligation to make roy24 alty payments under the claim and any person who con-
21

•HR 5317 IH

1 trols such claim holder or operator shall be jointly and

2 severally liable for payment of such royalties.

3 (b) DUTIES OF CLAIM HOLDERS, OPERATORS, AND

4 TRANSPORTERS.—(1) A person—

5 (A) who is required to make any royalty pay6 ment under this section shall make such payments

7 to the United States at such times and in such man8 ner as the Secretary may by rule prescribe; and

9 (B) shall notify the Secretary, in the time and

10 manner as may be specified by the Secretary, of any

11 assignment that such person may have made of the

12 obligation to make any royalty or other payment

13 under a mining claim.

14 (2) Any person paying royalties under this section

15 shall file a written instrument, together with the first roy16 alty payment, affirming that such person is liable to the

17 Secretary for making proper payments for all amounts due

18 for all time periods for which such person as a payment

19 responsibility. Such liability for the period referred to in

20 the preceding sentence shall include any and all additional

21 amounts billed by the Secretary and determined to be due

22 by final agency or judicial action. Any person liable for

23 royalty payments under this section who assigns any pay24 ment obligation shall remain jointly and severally liable

25 for all royalty payments due for the claim for the period.
22

•HR 5317 IH

1 (3) A person conducting mineral activities shall—

2 (A) develop and comply with the site security

3 provisions in operations permit designed to protect

4 from theft the locatable minerals, concentrates or

5 products derived therefrom which are produced or

6 stored on a mining claim, and such provisions shall

7 conform with such minimum standards as the Sec8 retary may prescribe by rule, taking into account the

9 variety of circumstances on mining claims; and

10 (B) not later than the 5th business day after

11 production begins anywhere on a mining claim, or

12 production resumes after more than 90 days after

13 production was suspended, notify the Secretary, in

14 the manner prescribed by the Secretary, of the date

15 on which such production has begun or resumed.

16 (4) The Secretary may by rule require any person en17 gaged in transporting a locatable mineral, concentrate, or

18 product derived therefrom to carry on his or her person,

19 in his or her vehicle, or in his or her immediate control,

20 documentation showing, at a minimum, the amount, ori21 gin, and intended destination of the locatable mineral, con22 centrate, or product derived therefrom in such cir23 cumstances as the Secretary determines is appropriate.

24 (c) RECORDKEEPING AND REPORTING REQUIRE25 MENTS.—(1) A claim holder, operator, or other person di-
23

•HR 5317 IH

1 rectly involved in developing, producing, processing, trans2 porting, purchasing, or selling locatable minerals, con3 centrates, or products derived therefrom, subject to this

4 Act, through the point of royalty computation shall estab5 lish and maintain any records, make any reports, and pro6 vide any information that the Secretary may reasonably

7 require for the purposes of implementing this section or

8 determining compliance with rules or orders under this

9 section. Such records shall include, but not be limited to,

10 periodic reports, records, documents, and other data. Such

11 reports may also include, but not be limited to, pertinent

12 technical and financial data relating to the quantity, qual13 ity, composition volume, weight, and assay of all minerals

14 extracted from the mining claim. Upon the request of any

15 officer or employee duly designated by the Secretary or

16 any State conducting an audit or investigation pursuant

17 to this section, the appropriate records, reports, or infor18 mation which may be required by this section shall be

19 made available for inspection and duplication by such offi20 cer or employee or State.

21 (2) Records required by the Secretary under this sec22 tion shall be maintained for 6 years after cessation of all

23 mining activity at the claim concerned unless the Sec24 retary notifies the operator that he or she has initiated

25 an audit or investigation involving such records and that
24

•HR 5317 IH

1 such records must be maintained for a longer period. In

2 any case when an audit or investigation is underway,

3 records shall be maintained until the Secretary releases

4 the operator of the obligation to maintain such records.

5 (d) AUDITS.—The Secretary is authorized to conduct

6 such audits of all claim holders, operators, transporters,

7 purchasers, processors, or other persons directly or indi8 rectly involved in the production or sales of minerals cov9 ered by this Act, as the Secretary deems necessary for the

10 purposes of ensuring compliance with the requirements of

11 this section. For purposes of performing such audits, the

12 Secretary shall, at reasonable times and upon request,

13 have access to, and may copy, all books, papers and other

14 documents that relate to compliance with any provision

15 of this section by any person.

16 (e) COOPERATIVE AGREEMENTS.—(1) The Secretary

17 is authorized to enter into cooperative agreements with the

18 Secretary of Agriculture to share information concerning

19 the royalty management of locatable minerals, con20 centrates, or products derived therefrom, to carry out in21 spection, auditing, investigation, or enforcement (not in22 cluding the collection of royalties, civil or criminal pen23 alties, or other payments) activities under this section in

24 cooperation with the Secretary, and to carry out any other

25 activity described in this section.
25

•HR 5317 IH

1 (2) Except as provided in paragraph (4)(A) of this

2 subsection (relating to trade secrets), and pursuant to a

3 cooperative agreement, the Secretary of Agriculture shall,

4 upon request, have access to all royalty accounting infor5 mation in the possession of the Secretary respecting the

6 production, removal, or sale of locatable minerals, con7 centrates, or products derived therefrom from claims on

8 lands open to location under the general mining laws.

9 (3) Trade secrets, proprietary, and other confidential

10 information shall be made available by the Secretary pur11 suant to a cooperative agreement under this subsection to

12 the Secretary of Agriculture upon request only if—

13 (A) the Secretary of Agriculture consents in

14 writing to restrict the dissemination of the informa15 tion to those who are directly involved in an audit

16 or investigation under this section and who have a

17 need to know;

18 (B) the Secretary of Agriculture accepts liabil19 ity for wrongful disclosure; and

20 (C) the Secretary of Agriculture demonstrates

21 that such information is essential to the conduct of

22 an audit or investigation under this subsection.

23 (f) INTEREST AND SUBSTANTIAL UNDERREPORTING

24 ASSESSMENTS.—(1) In the case of mining claims where

25 royalty payments are not received by the Secretary on the
26

•HR 5317 IH

1 date that such payments are due, the Secretary shall

2 charge interest on such underpayments at the same inter3 est rate as is applicable under section 6621(a)(2) of the

4 Internal Revenue Code of 1986. In the case of an under5 payment, interest shall be computed and charged only on

6 the amount of the deficiency and not on the total amount.

7 (2) If there is any underreporting of royalty owed on

8 production from a claim for any production month by any

9 person liable for royalty payments under this section, the

10 Secretary may assess a penalty of 10 percent of the

11 amount of that underreporting.

12 (3) If there is a substantial underreporting of royalty

13 owed on production from a claim for any production

14 month by any person responsible for paying the royalty,

15 the Secretary may assess a penalty of 10 percent of the

16 amount of that underreporting.

17 (4) The Secretary shall not impose the assessment

18 provided in paragraph (2) or (3) of this subsection if the

19 person liable for royalty payments under this section cor20 rects the underreporting before the date such person re21 ceives notice from the Secretary that an underreporting

22 may have occurred, or before 90 days after the date of

23 the enactment of this section, whichever is later.

24 (5) The Secretary shall waive any portion of an as25 sessment under paragraph (2) or (3) of this subsection
27

•HR 5317 IH

1 attributable to that portion of the underreporting for

2 which the person responsible for paying the royalty dem3 onstrates that—

4 (A) such person had written authorization from

5 the Secretary to report royalty on the value of the

6 production on basis on which it was reported;

7 (B) such person had substantial authority for

8 reporting royalty on the value of the production on

9 the basis on which it was reported;

10 (C) such person previously had notified the Sec11 retary, in such manner as the Secretary may by rule

12 prescribe, of relevant reasons or facts affecting the

13 royalty treatment of specific production which led to

14 the underreporting; or

15 (D) such person meets any other exception

16 which the Secretary may, by rule, establish.

17 (6) All penalties collected under this subsection shall

18 be deposited in the Treasury.

19 (g) EXPANDED ROYALTY OBLIGATIONS.—Each per20 son liable for royalty payments under this section shall

21 be jointly and severally liable for royalty on all locatable

22 minerals, concentrates, or products derived therefrom lost

23 or wasted from a mining claim located or converted under

24 this section when such loss or waste is due to negligence

25 on the part of any person or due to the failure to comply
28

•HR 5317 IH

1 with any rule, regulation, or order issued under this sec2 tion.

3 (h) EXCEPTION.—No royalty shall be payable under

4 subsection (a) with respect to minerals processed at a fa5 cility by the same person or entity which extracted the

6 minerals if an urban development action grant has been

7 made under section 119 of the Housing and Community

8 Development Act of 1974 with respect to any portion of

9 such facility.

10 (i) EFFECTIVE DATE.—The royalty under this sec11 tion shall take effect with respect to the production of

12 locatable minerals after the enactment of this Act, but any

13 royalty payments attributable to production during the

14 first 12 calendar months after the enactment of this sec15 tion shall be payable at the expiration of such 12-month

16 period.

17 SEC. 313. LIMITATION ON PATENT ISSUANCE.

18 (a) MINING CLAIMS.—After September 27, 2000, no

19 patent shall be issued by the United States for any mining

20 claim located under the general mining laws or under this

21 Act unless the Secretary determines that, for the claim

22 concerned—

23 (1) a patent application was filed with the Sec24 retary on or before September 27, 2000; and
29

•HR 5317 IH

1 (2) all requirements established under sections

2 2325 and 2326 of the Revised Statutes (30 U.S.C.

3 29 and 30) for vein or lode claims and sections

4 2329, 2330, 2331, and 2333 of the Revised Statutes

5 (30 U.S.C. 35, 36, and 37) for placer claims were

6 fully complied with by that date.

7 If the Secretary makes the determinations referred to in

8 paragraphs (1) and (2) for any mining claim, the holder

9 of the claim shall be entitled to the issuance of a patent

10 in the same manner and degree to which such claim holder

11 would have been entitled to prior to the enactment of this

12 Act, unless and until such determinations are withdrawn

13 or invalidated by the Secretary or by a court of the United

14 States.

15 (b) MILL SITES.—After September 27, 2000, no pat16 ent shall be issued by the United States for any mill site

17 claim located under the general mining laws unless the

18 Secretary determines that for the mill site concerned—

19 (1) a patent application for such land was filed

20 with the Secretary on or before September 27, 2000;

21 and

22 (2) all requirements applicable to such patent

23 application were fully complied with by that date.

24 If the Secretary makes the determinations referred to in

25 paragraphs (1) and (2) for any mill site claim, the holder
30

•HR 5317 IH

1 of the claim shall be entitled to the issuance of a patent

2 in the same manner and degree to which such claim holder

3 would have been entitled to prior to the enactment of this

4 section, unless and until such determinations are with5 drawn or invalidated by the Secretary or by a court of

6 the United States.

7 SEC. 314. MINING CLAIM MAINTENANCE REQUIREMENTS.

8 (a) IN GENERAL.—(1) The holder of each mining

9 claim converted under the general mining laws shall pay

10 to the Secretary an annual claim maintenance fee of $100

11 per claim.

12 (2) The holder of each mining claim located pursuant

13 to the general mining laws shall pay to the Secretary an

14 annual claim maintenance fee of $200 per claim.

15 (b) TIME OF PAYMENT.—The claim maintenance fee

16 payable pursuant to subsection (a) for any year shall be

17 paid on or before August 31 of each year, except that in

18 the case of claims referred to in subsection (a)(2), for the

19 initial calendar year in which the location is made, the

20 locator shall pay the initial claim maintenance fee at the

21 time the location notice is recorded with the Bureau of

22 Land Management.

23 (c) OIL SHALE CLAIMS SUBJECT TO CLAIM MAINTE24 NANCE FEES UNDER ENERGY POLICY ACT OF 1992.—

25 This section shall not apply to any oil shale claims for
31

•HR 5317 IH

1 which a fee is required to be paid under section 2511(e)(2)

2 of the Energy Policy Act of 1992 (Public Law 102–486;

3 106 Stat. 3111; 30 U.S.C. 242).

4 (d) CLAIM MAINTENANCE FEES PAYABLE UNDER

5 1993 ACT.—The claim maintenance fees payable under

6 this section for any period with respect to any claim shall

7 be reduced by the amount of the claim maintenance fees

8 paid under section 10101 of the Omnibus Budget Rec9 onciliation Act of 1993 with respect to that claim and with

10 respect to the same period.

11 (e) WAIVER.—(1) The claim maintenance fee re12 quired under this section may be waived for a claim holder

13 who certifies in writing to the Secretary that on the date

14 the payment was due, the claim holder and all related par15 ties held not more than 10 mining claims on lands open

16 to location. Such certification shall be made on or before

17 the date on which payment is due.

18 (2) For purposes of paragraph (1), with respect to

19 any claim holder, the term ‘‘related party’’ means each

20 of the following:

21 (A) The spouse and dependent children (as de22 fined in section 152 of the Internal Revenue Code of

23 1986), of the claim holder.

24 (B) Any affiliate of the claim holder.
32

•HR 5317 IH

1 (f) CO-OWNERSHIP.—Upon the failure of any one or

2 more of several co-owners to contribute such co-owner or

3 owners’ portion of the fee under this section, any co-owner

4 who has paid such fee may, after the payment due date,

5 give the delinquent co-owner or owners notice of such fail6 ure in writing (or by publication in the newspaper nearest

7 the claim for at least once a week for at least 90 days).

8 If at the expiration of 90 days after such notice in writing

9 or by publication, any delinquent co-owner fails or refuses

10 to contribute his portion, his interest in the claim shall

11 become the property of the co-owners who have paid the

12 required fee.

13 (g) CREDIT AGAINST ROYALTY.—The amount of the

14 annual claim maintenance fee required to be paid under

15 this section for any claim for any period shall be credited

16 against the amount of royalty required to be paid under

17 section 312 for the same period with respect to that claim.

18 (h) PURCHASING POWER ADJUSTMENT.—The Sec19 retary shall adjust all dollar amounts established in this

20 section for changes in the purchasing power of the dollar

21 every 10 years following the date of enactment of this sec22 tion, employing the Consumer Price Index for all urban

23 consumers published by the Department of Labor as the

24 basis for adjustment, and rounding according to the ad-
33

•HR 5317 IH

1 justment process of conditions of the Federal Civil Pen2 alties Inflation Adjustment Act of 1990 (104 Stat. 890).

3 SEC. 315. SAVINGS CLAUSE.

4 Nothing in sections 312, 313, or 314 shall be con5 strued as repealing or modifying any Federal law, regula6 tion, order, or land use plan, in effect prior to the effective

7 date of such section, that prohibits or restricts the applica8 tion of the general mining laws, including such laws that

9 provide for special management criteria for operations

10 under the general mining laws as in effect prior to the

11 effective date of such section, to the extent such laws pro12 vide environmental protection greater than required under

13 the general mining laws.

14 TITLE IV—AMENDMENTS OF IN15 TERNAL REVENUE CODE OF

16 1986

17 SEC. 401. REPEAL OF EXCLUSION OF CERTAIN INCOME OF

18 FOREIGN SALES CORPORATIONS.

19 (a) IN GENERAL.—Section 921 of the Internal Rev20 enue Code of 1986 (relating to exempt foreign trade in21 come excluded from gross income) is amended by adding

22 at the end the following new subsection:

23 ‘‘(e) TERMINATION.—This subpart shall not apply to

24 any taxable year beginning after December 31, 2000.’’
34

•HR 5317 IH

1 (b) EFFECTIVE DATE.—The amendment made by

2 this section shall apply to taxable years beginning after

3 December 31, 2000.

4 SEC. 402. DENIAL OF DEDUCTION FOR PAYMENTS OF EX5 CESSIVE COMPENSATION.

6 (a) IN GENERAL.—Section 162 of the Internal Rev7 enue Code of 1986 (relating to deduction for trade or busi8 ness expenses) is amended by inserting after subsection

9 (h) the following new subsection:

10 ‘‘(i) EXCESSIVE COMPENSATION.—

11 ‘‘(1) IN GENERAL.—No deduction shall be al12 lowed under this chapter for any excessive com13 pensation with respect to any full-time employee.

14 ‘‘(2) EXCESSIVE COMPENSATION.—For pur15 poses of this subsection, the term ‘excessive com16 pensation’ means, with respect to any employee, the

17 amount by which—

18 ‘‘(A) the compensation for services per19 formed by such employee during the taxable

20 year, exceeds

21 ‘‘(B) an amount equal to 25 times the low22 est compensation for services performed by any

23 other full-time employee during such taxable

24 year.
35

•HR 5317 IH

1 ‘‘(3) DEFINITIONS AND SPECIAL RULES.—For

2 purposes of this subsection—

3 ‘‘(A) COMPENSATION.—

4 ‘‘(i) IN GENERAL.—The term ‘com5 pensation’ means salary, wages, and bo6 nuses.

7 ‘‘(ii) PART-YEAR EMPLOYEES.—In the

8 case of any part-year employee, the com9 pensation of the employee shall be com10 puted on an annualized basis.

11 ‘‘(B) EMPLOYER.—All persons treated as a

12 single employer under subsection (a) or (b) of

13 section 52 or subsection (m) or (o) of section

14 414 shall be treated as 1 employer.’’

15 (b) EFFECTIVE DATE.—The amendment made by

16 this section shall apply to taxable years beginning after

17 the date of the enactment of this Act.

18 SEC. 403. DISALLOWANCE OF DEDUCTIONS FOR ADVER19 TISING AND PROMOTIONAL EXPENSES RE20 LATING TO TOBACCO PRODUCT USE.

21 (a) IN GENERAL.—Part IX of subchapter B of chap22 ter 1 of subtitle A of the Internal Revenue Code of 1986

23 (relating to items not deductible) is amended by adding

24 at the end the following new section:
36

•HR 5317 IH

1 ‘‘SEC. 280I. DISALLOWANCE OF DEDUCTION FOR TOBACCO

2 ADVERTISING AND PROMOTIONAL EX3 PENSES.

4 No deduction shall be allowed under this chapter for

5 expenses relating to advertising or promoting cigars, ciga6 rettes, smokeless tobacco, pipe tobacco, or any similar to7 bacco product. For purposes of this section, any term used

8 in this section which is also used in section 5702 shall

9 have the same meaning given such term by section 5702.’’

10 (b) CONFORMING AMENDMENT.—The table of sec11 tions for such part IX is amended by adding after the

12 item relating to section 280H the following new item:

‘‘Sec. 280I. Disallowance of deduction for tobacco advertising

and promotion expenses.’’

13 (c) EFFECTIVE DATE.—The amendments made by

14 this section shall apply to taxable years ending after De15 cember 31, 2000.

16 SEC. 404. SOURCE OF INCOME FROM CERTAIN SALES OF IN17 VENTORY PROPERTY.

18 (a) GENERAL RULE.—Subsection (b) of section 865

19 of the Internal Revenue Code of 1986 (relating to excep20 tion for inventory property) is amended to read as follows:

21 ‘‘(b) EXCEPTION FOR INVENTORY PROPERTY.—

22 ‘‘(1) IN GENERAL.—Except as otherwise pro23 vided in this subsection, income derived from the

24 sale of inventory property shall be sourced under the
37

•HR 5317 IH

1 rules of sections 861(a)(6), 862(a)(6), and 863 and

2 this section shall not apply.

3 ‘‘(2) TREATMENT OF CERTAIN SALES TO RE4 LATED PERSONS.—

5 ‘‘(A) IN GENERAL.—If any inventory prop6 erty produced (in whole or in part) by the tax7 payer is sold by the taxpayer (directly or indi8 rectly) to a related person—

9 ‘‘(i) the portion determined under

10 subparagraph (B) of the income from such

11 sale shall be sourced in the United States

12 or outside the United States depending on

13 where the production activities occur, and

14 ‘‘(ii) the remaining portion of such in15 come shall be sourced under the rules of

16 sections 861(a)(6), 862(a)(6), and 863.

17 ‘‘(B) AMOUNT APPORTIONED TO PRODUC18 TION ACTIVITIES.—For purposes of subpara19 graph (A), the portion determined under this

20 subparagraph is so much of the income from

21 the sale as does not exceed the greater of—

22 ‘‘(i) the portion of such income appor23 tioned to production activities under sec24 tion 863(b), or
38

•HR 5317 IH

1 ‘‘(ii) the portion of the combined in2 come of the taxpayer and related person

3 attributable to such property which would

4 have been apportioned to production activi5 ties under section 863(b) if such taxpayer

6 and related person were one taxpayer.

7 ‘‘(C) RELATED PERSON.—For purposes of

8 this paragraph, the term ‘related person’ means

9 any person related (within the meaning of sec10 tion 482) to the taxpayer.

11 ‘‘(3) CERTAIN SALES FOR USE IN UNITED

12 STATES.—If—

13 ‘‘(A) a United States resident sells (di14 rectly or indirectly) inventory property to an15 other United States resident for use, consump16 tion, or disposition in the United States, and

17 ‘‘(B) such sale is not attributable to an of18 fice or other fixed place of business maintained

19 by such United States resident outside the

20 United States,

21 any income of such United States resident (or any

22 related person) from such sale shall be sourced in

23 the United States.’’
39

•HR 5317 IH

1 (b) EFFECTIVE DATE.—The amendment made by

2 subsection (a) shall apply to sales after December 31,

3 2000.

4 TITLE V—MISCELLANEOUS PRO5 VISIONS TO REDUCE WASTE6 FUL AND INEFFICIENT

7 SPENDING

8 SEC. 501. INTERNATIONAL SPACE STATION.

9 The National Aeronautics and Space Administration

10 shall not obligate any further funding for the International

11 Space Station.

12 SEC. 502. OVERSEAS PRIVATE INVESTMENT CORPORATION.

13 (a) PROHIBITION ON NEW CONTRACTS.—The Over14 seas Private Investment Corporation may not, on or after

15 the date of enactment of this Act, issue any contract of

16 insurance or reinsurance, or any guaranty, or enter into

17 any agreement to provide financing.

18 (b) EXISTING CONTRACTS.—Subsection (a) does not

19 require the termination of any contract or other agreement

20 entered into before the date of enactment of this Act.

21 SEC. 503. PROHIBITION ON PROVISION OF NEW CREDIT BY

22 THE EXPORT-IMPORT BANK OF THE UNITED

23 STATES.

24 Notwithstanding any other provision of law, the Ex25 port-Import Bank of the United States may not, on or
40

•HR 5317 IH

1 after the date of the enactment of this Act, provide any

2 guarantee, insurance, or extension of credit, or participate

3 in any extension of credit, except pursuant to a commit4 ment made by the Export-Import Bank of the United

5 States before such date of enactment.

6 SEC. 504. TRADE AND DEVELOPMENT AGENCY.

7 (a) TERMINATION OF AGENCY.—Effective on the

8 date of enactment of this Act, the Trade and Development

9 Agency is abolished.

10 (b) ADMINISTRATION OF EXISTING OBLIGATIONS.—

11 The Secretary of State shall carry out the functions per12 formed on the day before the date of enactment of this

13 Act by the Trade and Development Agency only for pur14 poses of administering contracts or agreements issued or

15 entered into by the Trade and Development Agency before

16 the date of enactment of this Act that are effective on

17 such date of enactment. Such functions shall terminate

18 when all such contracts and agreements expire.

19 (c) TERMINATION OF PROVISIONS.—Section 661 of

20 the Foreign Assistance Act of 1961 (22 U.S.C. 2191 and

21 following) is repealed, effective on the date of enactment

22 of this Act, except that such section shall continue in ef23 fect with respect to the functions performed by the Sec24 retary of State under subsection (b).
41

•HR 5317 IH

1 (d) TERMINATION OF AFFAIRS.—The Director of the

2 Office of Management and Budget shall take the nec3 essary steps to terminate the affairs of the Trade and De4 velopment Agency.

5 (e) APPROPRIATIONS.—Funds available to the Trade

6 and Development Agency shall, on the date of enactment

7 of this Act, be transferred to the Secretary of State for

8 use in performing the functions of the Trade and Develop9 ment Agency under subsection (b). Upon the expiration

10 of the contracts and agreements with respect to which the

11 Secretary of State is exercising such functions, any unex12 pended balances of the funds transferred under this sub13 section shall be deposited in the Treasury as miscellaneous

14 receipts.

15 SEC. 505. UNITED STATES INTERNATIONAL BROAD16 CASTING.

17 (a) TERMINATION OF BROADCASTING TO CUBA.—Ef18 fective October 1, 2001, the Television Broadcasting to

19 Cuba Act (22 U.S.C. 1465aa and following) and the Radio

20 Broadcasting to Cuba Act (22 U.S.C. 1465 and following)

21 are repealed.

22 (b) AUTHORIZATIONS OF APPROPRIATIONS FOR

23 INTERNATIONAL BROADCASTING OPERATIONS.—For

24 ‘‘International Broadcasting Operations’’ (including Radio

25 Free Europe/Radio Liberty, Voice of America, and Radio
42

•HR 5317 IH

1 Free Asia), there are authorized to be appropriated

2 $196,800,000, for the fiscal year 2002, .

3 (c) AUTHORIZATION OF APPROPRIATIONS FOR RADIO

4 FREE ASIA.—For ‘‘Radio Free Asia’’, there are author5 ized to be appropriated $15,000,000, for the fiscal year

6 2002, .

7 SEC. 506. JOINT PROCUREMENT OF PHARMACEUTICALS BY

8 THE DEPARTMENT OF DEFENSE AND THE DE9 PARTMENT OF VETERANS AFFAIRS.

10 The Secretary of Defense and the Secretary of Vet11 erans Affairs shall—

12 (1) establish a joint office for the procurement

13 of pharmaceuticals for the Department of Defense

14 and the Department of Veterans Affairs; and

15 (2) jointly develop and implement a common

16 clinically-based formulary for the pharmaceutical

17 programs of the Department of Defense and the De18 partment of Veterans Affairs.

Æ