```

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

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

[[Page 114 STAT. 2763]]

     
     
Public Law 106-554
106th Congress

                                 An Act

 
      Making <<NOTE: Dec. 21, 2000 -  [H.R. 4577]>>  consolidated 
 appropriations for the fiscal year ending September 30, 2001, and for 
                             other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress <<NOTE: Consolidated Appropriations 
Act, 2001.>> assembled,

    Section 1. <<NOTE: Incorporation by reference.>> (a) The provisions 
of the following bills of the 106th Congress are hereby enacted into 
law:
            (1) H.R. 5656, as introduced on December 14, 2000.
            (2) H.R. 5657, as introduced on December 14, 2000.
            (3) H.R. 5658, as introduced on December 14, 2000.
            (4) H.R. 5666, as introduced on December 15, 2000, except 
        that the text of H.R. 5666, as so enacted, shall not include 
        section 123 (relating to the enactment of H.R. 4904).
            (5) H.R. 5660, as introduced on December 14, 2000.
            (6) H.R. 5661, as introduced on December 14, 2000.
            (7) H.R. 5662, as introduced on December 14, 2000.
            (8) H.R. 5663, as introduced on December 14, 2000.
            (9) H.R. 5667, as introduced on December 15, 2000.

    (b) <<NOTE: Publication. 1 USC 112 note.>>  In publishing this Act 
in slip form and in the United States Statutes at Large pursuant to 
section 112 of title 1, United States Code, the Archivist of the United 
States shall include after the date of approval at the end appendixes 
setting forth the texts of the bills referred to in subsection (a) of 
this section and the text of any other bill enacted into law by 
reference by reason of the enactment of this Act.

    Sec. 2. (a) Notwithstanding Rule 3 of the Budget Scorekeeping 
Guidelines set forth in the joint explanatory statement of the committee 
of conference accompanying Conference Report 105-217, legislation 
enacted in section 505 of the Department of Transportation and Related 
Agencies Appropriations Act, 2001, section 312 of the Legislative Branch 
Appropriations Act, 2001, titles X and XI of H.R. 5548 (106th Congress) 
as enacted by H.R. 4942 (106th Congress), division B of H.R. 5666 (106th 
Congress) as enacted by this Act, and sections 1(a)(5) through 1(a)(9) 
of this Act that would have been estimated by the Office of Management 
and Budget as changing direct spending or receipts under section 252 of 
the Balanced Budget and Emergency Deficit Control Act of 1985 were it 
included in an Act other than an appropriations Act shall be treated as 
direct spending or receipts legislation, as appropriate, under section 
252 of the Balanced Budget and Emergency Deficit Control Act of 1985.
---------------------------------------------------------------------------
    See Endnote on 114 Stat. 2764.
---------------------------------------------------------------------------

    (b) In preparing the final sequestration report required by section 
254(f )(3) of the Balanced Budget and Emergency Deficit Control Act of 
1985 for fiscal year 2001, in addition to the information required by 
that section, the Director of the Office of Management and Budget shall 
change any balance of direct spending

[[Page 114 STAT. 2764]]

 

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

    Approved December 21, 2000.

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

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

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

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

                                  <all>

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

                            TABLE OF CONTENTS

                  The table of contents is as follows:

                          APPENDIX A--H.R. 5656

                          APPENDIX B--H.R. 5657

                          APPENDIX C--H.R. 5658

                          APPENDIX D--H.R. 5666

                          APPENDIX D-1--S. 2273

                          APPENDIX D-2--S. 2885

                          APPENDIX E--H.R. 5660

                          APPENDIX F--H.R. 5661

                          APPENDIX G--H.R. 5662

                          APPENDIX H--H.R. 5663

                          APPENDIX I--H.R. 5667

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

                          APPENDIX A--H.R. 5656

That the following sums are appropriated, out of any money in the 
Treasury not otherwise appropriated, for the Departments of Labor, 
Health and Human Services, and Education, and related agencies for the 
fiscal year ending September 30, 2001, and for other purposes, namely:

                      TITLE I--DEPARTMENT OF LABOR

                 Employment and Training Administration

                    training and employment services

    For necessary expenses of the Workforce Investment Act, including 
the purchase and hire of passenger motor vehicles, the construction, 
alteration, and repair of buildings and other facilities, and the 
purchase of real property for training centers as authorized by the 
Workforce Investment Act; the Women in Apprenticeship and Nontraditional 
Occupations Act; and the National Skill Standards Act of 1994; 
$3,207,805,000 plus reimbursements, of which $1,808,465,000 is available 
for obligation for the period July 1, 2001 through June 30, 2002; of 
which $1,377,965,000 is available for obligation for the period April 1, 
2001 through June 30, 2002, including $1,102,965,000 to carry out 
chapter 4 of the Workforce Investment Act and $275,000,000 to carry out 
section 169 of such Act; and of which $20,375,000 is available for the 
period July 1, 2001 through June 30, 2004 for necessary expenses of 
construction, rehabilitation, and acquisition of Job Corps centers: 
Provided, That $9,098,000 shall be for carrying out section 172 of the 
Workforce Investment Act, and $3,500,000 shall be for carrying out the 
National Skills Standards Act of 1994: Provided further, That no funds 
from any other appropriation shall be used to provide meal services at 
or for Job Corps centers: Provided further, That funds provided to carry 
out section 171(d) of such Act may be used for demonstration projects 
that provide assistance to new entrants in the workforce and incumbent 
workers: Provided further, That funding provided to carry out projects 
under section 171 of the Workforce Investment Act of 1998 that are 
identified in the Conference Agreement, shall not be subject to the 
requirements of section 171(b)(2)(B) of such Act, the requirements of 
section 171(c)(4)(D) of such Act, or the joint funding requirements of 
sections 171(b)(2)(A) and 171(c)(4)(A) of such Act: Provided further, 
That funding appropriated herein for Dislocated Worker Employment and 
Training Activities under section 132(a)(2)(A) of the Workforce 
Investment Act of 1998 may be distributed for Dislocated Worker Projects 
under section 171(d) of the Act without regard to the 10 percent 
limitation contained in section 171(d) of the

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

Act: Provided further, That of the funds made available for Job Corps 
operating expenses in the Department of Labor Appropriations Act, 2000, 
as enacted by section 1000(a)(4) of Public Law 106-113, $586,487 shall 
be paid to the city of Vergennes, Vermont in settlement of the city's 
claim: Provided further, That $4,600,000 provided herein for dislocated 
worker employment and training activities shall be made available to the 
New Mexico Telecommunications Call Center Training Consortium for 
training in telecommunications-related occupations.
    For necessary expenses of the Workforce Investment Act, including 
the purchase and hire of passenger motor vehicles, the construction, 
alteration, and repair of buildings and other facilities, and the 
purchase of real property for training centers as authorized by the 
Workforce Investment Act; $2,463,000,000 plus reimbursements, of which 
$2,363,000,000 is available for obligation for the period October 1, 
2001 through June 30, 2002, and of which $100,000,000 is available for 
the period October 1, 2001 through June 30, 2004, for necessary expenses 
of construction, rehabilitation, and acquisition of Job Corps centers.

            community service employment for older americans

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

              federal unemployment benefits and allowances

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

     state unemployment insurance and employment service operations

    For authorized administrative expenses, $193,452,000, together with 
not to exceed $3,172,246,000 (including not to exceed $1,228,000 which 
may be used for amortization payments to States which had independent 
retirement plans in their State employment service agencies prior to 
1980), which may be expended from the Employment Security Administration 
account in the Unemployment Trust Fund including the cost of 
administering section 51 of the Internal Revenue Code of 1986, as 
amended, section 7(d) of the Wagner-Peyser Act, as amended, the Trade 
Act of 1974, as amended, the Immigration Act of 1990, and the 
Immigration and Nationality Act, as amended, and of which the sums 
available in the allocation for activities authorized by title III of 
the Social Security Act, as amended (42 U.S.C. 502-504), and the sums 
available in the allocation for necessary administrative expenses for 
carrying out 5 U.S.C. 8501-8523, shall be available for obligation by 
the States through December 31, 2001, except that funds used for 
automation acquisitions shall be available for obligation by the States 
through September 30, 2003; and of which $193,452,000, together with not 
to exceed $773,283,000 of the amount which may be expended

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

from said trust fund, shall be available for obligation for the period 
July 1, 2001 through June 30, 2002, to fund activities under the Act of 
June 6, 1933, as amended, including the cost of penalty mail authorized 
under 39 U.S.C. 3202(a)(1)(E) made available to States in lieu of 
allotments for such purpose: Provided, That to the extent that the 
Average Weekly Insured Unemployment (AWIU) for fiscal year 2001 is 
projected by the Department of Labor to exceed 2,396,000, an additional 
$28,600,000 shall be available for obligation for every 100,000 increase 
in the AWIU level (including a pro rata amount for any increment less 
than 100,000) from the Employment Security Administration Account of the 
Unemployment Trust Fund: Provided further, That funds appropriated in 
this Act which are used to establish a national one-stop career center 
system, or which are used to support the national activities of the 
Federal-State unemployment insurance programs, may be obligated in 
contracts, grants, or agreements with non-State entities: Provided 
further, That funds appropriated under this Act for activities 
authorized under the Wagner-Peyser Act, as amended, and title III of the 
Social Security Act, may be used by the States to fund integrated 
Employment Service and Unemployment Insurance automation efforts, 
notwithstanding cost allocation principles prescribed under Office of 
Management and Budget Circular A-87.

         advances to the unemployment trust fund and other funds

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

                         program administration

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

               Pension and Welfare Benefits Administration

                          salaries and expenses

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

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

                  Pension Benefit Guaranty Corporation

                pension benefit guaranty corporation fund

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

                   Employment Standards Administration

                          salaries and expenses

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

                            special benefits

                      (including transfer of funds)

    For the payment of compensation, benefits, and expenses (except 
administrative expenses) accruing during the current or any prior fiscal 
year authorized by title 5, chapter 81 of the United

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

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

                    black lung disability trust fund

                      (including transfer of funds)

    For payments from the Black Lung Disability Trust Fund, 
$1,028,000,000, of which $975,343,000 shall be available until September 
30, 2002, for payment of all benefits as authorized by section 
9501(d)(1), (2), (4), and (7) of the Internal Revenue Code of 1954, as 
amended, and interest on advances as authorized by section 9501(c)(2) of 
that Act, and of which $30,393,000 shall be available for transfer to 
Employment Standards Administration, Salaries and Expenses, $21,590,000 
for transfer to Departmental Management, Salaries and Expenses, $318,000 
for transfer to Departmental Management, Office of Inspector General, 
and $356,000 for payment into miscellaneous receipts for the expenses of 
the Department of the Treasury, for expenses of operation and 
administration of the Black Lung Benefits program as authorized

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

by section 9501(d)(5) of that Act: Provided, That, in addition, such 
amounts as may be necessary may be charged to the subsequent year 
appropriation for the payment of compensation, interest, or other 
benefits for any period subsequent to August 15 of the current year.

              Occupational Safety and Health Administration

                          salaries and expenses

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

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

            (4) to take any action authorized by such Act with respect 
        to health hazards;
            (5) to take any action authorized by such Act with respect 
        to a report of an employment accident which is fatal to one or 
        more employees or which results in hospitalization of two or 
        more employees, and to take any action pursuant to such 
        investigation authorized by such Act; and
            (6) to take any action authorized by such Act with respect 
        to complaints of discrimination against employees for exercising 
        rights under such Act:

Provided further, That the foregoing proviso shall not apply to any 
person who is engaged in a farming operation which does not maintain a 
temporary labor camp and employs 10 or fewer employees.

                  Mine Safety and Health Administration

                          salaries and expenses

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

                       Bureau of Labor Statistics

                          salaries and expenses

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

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

                         Departmental Management

                          salaries and expenses

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

                    veterans employment and training

    Not to exceed $186,913,000 may be derived from the Employment 
Security Administration account in the Unemployment Trust Fund to carry 
out the provisions of 38 U.S.C. 4100-4110A, 4212, 4214, and 4321-4327, 
and Public Law 103-353, and which shall be available for obligation by 
the States through December 31, 2001. To carry out the Stewart B. 
McKinney Homeless Assistance

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

Act and section 168 of the Workforce Investment Act of 1998, 
$24,800,000, of which $7,300,000 shall be available for obligation for 
the period July 1, 2001 through June 30, 2002.

                       office of inspector general

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

                           GENERAL PROVISIONS

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

                           (transfer of funds)

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

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

    Sec. 107. (a) Section 403(a)(5) of the Social Security Act (as 
amended by section 806(b) of the Departments of Labor, Health and Human 
Services, and Education, and Related Agencies Appropriations Act, 2000 
(as enacted into law by section 1000(a)(4) of Public Law 106-113)) is 
amended by striking subparagraph (E) and redesignating subparagraphs (F) 
through (K) as subparagraphs (E) through (J), respectively.
    (b) The Social Security Act (as amended by section 806(b) of the 
Departments of Labor, Health and Human Services, and Education, and 
Related Agencies Appropriations Act, 2000 (as enacted into law by 
section 1000(a)(4) of Public Law 106-113)) is further amended as 
follows:
            (1) Section 403(a)(5)(A)(i) (42 U.S.C. 603(a)(5)(A)(i)) is 
        amended by striking ``subparagraph (I)'' and inserting 
        ``subparagraph (H)''.
            (2) Subclause (I) of each of subparagraphs (A)(iv) and 
        (B)(v) of section 403(a)(5) (42 U.S.C. 603(a)(5)(A)(iv)(I) and 
        (B)(v)(I)) is amended--
                    (A) in item (aa)--
                          (i) by striking ``(I)'' and inserting ``(H)''; 
                      and
                          (ii) by striking ``(G), and (H)'' and 
                      inserting ``and (G)''; and
                    (B) in item (bb), by striking ``(F)'' and inserting 
                ``(E)''.
            (3) Section 403(a)(5)(B)(v) (42 U.S.C. 603(a)(5)(B)(v)) is 
        amended in the matter preceding subclause (I) by striking 
        ``(I)'' and inserting ``(H)''.
            (4) Subparagraphs (E), (F), and (G)(i) of section 403(a)(5) 
        (42 U.S.C. 603(a)(5)), as so redesignated by subsection (a) of 
        this section, are each amended by striking ``(I)'' and inserting 
        ``(H)''.
            (5) Section 412(a)(3)(A) (42 U.S.C. 612(a)(3)(A)) is amended 
        by striking ``403(a)(5)(I)'' and inserting ``403(a)(5)(H)''.

    (c) Section 403(a)(5)(H)(i)(II) of such Act (42 U.S.C. 
603(a)(5)(H)(i)(II)) (as redesignated by subsection (a) of this section 
and as amended by section 806(b) of the Departments of Labor, Health and 
Human Services, and Education, and Related Agencies Appropriations Act, 
2000 (as enacted into law by section 1000(a)(4) of Public Law 106-113)) 
is further amended by striking ``$1,450,000,000'' and inserting 
``$1,400,000,000''.
    (d) The amendments made by subsections (a), (b), and (c) of this 
section shall take effect on October 1, 2000.
    This title may be cited as the ``Department of Labor Appropriations 
Act, 2001''.

            TITLE II--DEPARTMENT OF HEALTH AND HUMAN SERVICES

              Health Resources and Services Administration

                      health resources and services

    For carrying out titles II, III, VII, VIII, X, XII, XIX, and XXVI of 
the Public Health Service Act, section 427(a) of the Federal Coal Mine 
Health and Safety Act, title V and section 1820 of the Social Security 
Act, the Health Care Quality Improvement Act of 1986, as amended, the 
Native Hawaiian Health Care Act of 1988, as amended, and the Poison 
Control Center Enhancement and Awareness Act, $5,525,476,000, of which 
$226,224,000 shall

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

be available for the construction and renovation of health care and 
other facilities, and of which $25,000,000 from general revenues, 
notwithstanding section 1820( j) of the Social Security Act, shall be 
available for carrying out the Medicare rural hospital flexibility 
grants program under section 1820 of such Act: Provided, That the 
Division of Federal Occupational Health may utilize personal services 
contracting to employ professional management/administrative and 
occupational health professionals: Provided further, That of the funds 
made available under this heading, $250,000 shall be available until 
expended for facilities renovations at the Gillis W. Long Hansen's 
Disease Center: Provided further, That in addition to fees authorized by 
section 427(b) of the Health Care Quality Improvement Act of 1986, fees 
shall be collected for the full disclosure of information under the Act 
sufficient to recover the full costs of operating the National 
Practitioner Data Bank, and shall remain available until expended to 
carry out that Act: Provided further, That fees collected for the full 
disclosure of information under the ``Health Care Fraud and Abuse Data 
Collection Program,'' authorized by section 1128E(d)(2) of the Social 
Security Act, shall be sufficient to recover the full costs of operating 
the program, and shall remain available until expended to carry out that 
Act: Provided further, That no more than $5,000,000 is available for 
carrying out the provisions of Public Law 104-73: Provided further, That 
of the funds made available under this heading, $253,932,000 shall be 
for the program under title X of the Public Health Service Act to 
provide for voluntary family planning projects: Provided further, That 
amounts provided to said projects under such title shall not be expended 
for abortions, that all pregnancy counseling shall be nondirective, and 
that such amounts shall not be expended for any activity (including the 
publication or distribution of literature) that in any way tends to 
promote public support or opposition to any legislative proposal or 
candidate for public office: Provided further, That $589,000,000 shall 
be for State AIDS Drug Assistance Programs authorized by section 2616 of 
the Public Health Service Act: Provided further, That of the amount 
provided under this heading, $700,000 shall be for the American 
Federation of Negro Affairs Education and Research Fund of Philadelphia, 
$900,000 shall be for the Des Moines University Osteopathic Medical 
Center, $250,000 shall be for the University of Alaska, Anchorage, to 
train Alaska Natives as psychologists, $900,000 shall be for 
Northeastern University in Boston, Massachusetts, to train doctors to 
serve in low-income communities, $500,000 shall be for the University of 
Alaska, Anchorage, to recruit and train nurses in rural areas, and 
$230,000 shall be for the Illinois Poison Center: Provided further, 
That, notwithstanding section 502(a)(1) of the Social Security Act, not 
to exceed $113,728,000 is available for carrying out special projects of 
regional and national significance pursuant to section 501(a)(2) of such 
Act, of which $5,000,000 is for Columbia Hospital for Women Medical 
Center in Washington, D.C., to support community outreach programs for 
women, $5,000,000 is for continuation of the traumatic brain injury 
State demonstration projects, and $100,000 is for St. Joseph's Health 
Services of Rhode Island for the Providence Smiles dental program for 
low-income children.
    For special projects of regional and national significance under 
section 501(a)(2) of the Social Security Act, $30,000,000, which

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

shall become available on October 1, 2001, and shall remain available 
until September 30, 2002: Provided, That such amount shall not be 
counted toward compliance with the allocation required in section 
502(a)(1) of such Act: Provided further, That such amount shall be used 
only for making competitive grants to provide abstinence education (as 
defined in section 510(b)(2) of such Act) to adolescents and for 
evaluations (including longitudinal evaluations) of activities under the 
grants and for Federal costs of administering the grants: Provided 
further, That grants shall be made only to public and private entities 
which agree that, with respect to an adolescent to whom the entities 
provide abstinence education under such grant, the entities will not 
provide to that adolescent any other education regarding sexual conduct, 
except that, in the case of an entity expressly required by law to 
provide health information or services the adolescent shall not be 
precluded from seeking health information or services from the entity in 
a different setting than the setting in which the abstinence education 
was provided: Provided further, That the funds expended for such 
evaluations may not exceed 3.5 percent of such amount.

                health education assistance loans program

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

             vaccine injury compensation program trust fund

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

               Centers for Disease Control and Prevention

                 disease control, research, and training

    To carry out titles II, III, VII, XI, XV, XVII, XIX, and XXVI of the 
Public Health Service Act, sections 101, 102, 103, 201, 202, 203, 301, 
and 501 of the Federal Mine Safety and Health Act of 1977, sections 20, 
21, and 22 of the Occupational Safety and Health Act of 1970, title IV 
of the Immigration and Nationality Act, and section 501 of the Refugee 
Education Assistance Act of 1980; including insurance of official motor 
vehicles in foreign countries; and hire, maintenance, and operation of 
aircraft, $3,868,027,000, of which $175,000,000 shall remain available 
until expended for the facilities master plan for equipment and 
construction and renovation of facilities, and in addition, such sums as 
may be derived from authorized user fees, which shall be credited to 
this account, and of which $104,527,000 for international HIV/AIDS 
programs shall remain available until September 30, 2002: Provided, That 
in addition to amounts provided herein, up to

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

$71,690,000 shall be available from amounts available under section 241 
of the Public Health Service Act to carry out the National Center for 
Health Statistics Surveys: Provided further, That none of the funds made 
available for injury prevention and control at the Centers for Disease 
Control and Prevention may be used to advocate or promote gun control: 
Provided further, That the Director may redirect the total amount made 
available under authority of Public Law 101-502, section 3, dated 
November 3, 1990, to activities the Director may so designate: Provided 
further, That the Congress is to be notified promptly of any such 
transfer: Provided further, That not to exceed $10,000,000 may be 
available for making grants under section 1509 of the Public Health 
Service Act to not more than 15 States: Provided further, That 
notwithstanding any other provision of law, a single contract or related 
contracts for development and construction of facilities may be employed 
which collectively include the full scope of the project: Provided 
further, That the solicitation and contract shall contain the clause 
``availability of funds'' found at 48 CFR 52.232-18: Provided further, 
That funds obligated for influenza vaccine stockpile in fiscal year 2000 
and fiscal year 2001 shall be considered as appropriated under section 3 
of Public Law 101-502.

                      National Institutes of Health

                        national cancer institute

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

                national heart, lung, and blood institute

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

         national institute of dental and craniofacial research

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

    national institute of diabetes and digestive and kidney diseases

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

         national institute of neurological disorders and stroke

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

          national institute of allergy and infectious diseases

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

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

             national institute of general medical sciences

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

        national institute of child health and human development

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

                         national eye institute

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

           national institute of environmental health sciences

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

                       national institute on aging

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

  national institute of arthritis and musculoskeletal and skin diseases

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

    national institute on deafness and other communication disorders

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

                 national institute of nursing research

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

           national institute on alcohol abuse and alcoholism

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

                    national institute on drug abuse

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

                   national institute of mental health

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

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

                national human genome research institute

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

                 national center for research resources

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

                  john e. fogarty international center

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

                      national library of medicine

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

       national center for complementary and alternative medicine

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

        national center on minority health and health disparities

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

                         office of the director

                      (including transfer of funds)

    For carrying out the responsibilities of the Office of the Director, 
National Institutes of Health, $213,581,000, of which $48,271,000 shall 
be for the Office of AIDS Research: Provided, That funding shall be 
available for the purchase of not to exceed 20 passenger motor vehicles 
for replacement only: Provided further, That the Director may direct up 
to 1 percent of the total amount made available in this or any other Act 
to all National Institutes of Health appropriations to activities the 
Director may so designate: Provided further, That no such appropriation 
shall be decreased by more than 1 percent by any such transfers and that 
the Congress is promptly notified of the transfer: Provided further, 
That the National Institutes of Health is authorized to collect third 
party payments for the cost of clinical services that are incurred in

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

National Institutes of Health research facilities and that such payments 
shall be credited to the National Institutes of Health Management Fund: 
Provided further, That all funds credited to the National Institutes of 
Health Management Fund shall remain available for 1 fiscal year after 
the fiscal year in which they are deposited: Provided further, That up 
to $500,000 shall be available to carry out section 499 of the Public 
Health Service Act: Provided further, That, notwithstanding section 
499(k)(10) of the Public Health Service Act, funds from the Foundation 
for the National Institutes of Health may be transferred to the National 
Institutes of Health.

                        buildings and facilities

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

        Substance Abuse and Mental Health Services Administration

               substance abuse and mental health services

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

               Agency for Healthcare Research and Quality

                     healthcare research and quality

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

                  Health Care Financing Administration

                      grants to states for medicaid

    For carrying out, except as otherwise provided, titles XI and XIX of 
the Social Security Act, $93,586,251,000, to remain available until 
expended.

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

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

                   payments to health care trust funds

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

                           program management

    For carrying out, except as otherwise provided, titles XI, XVIII, 
XIX, and XXI of the Social Security Act, titles XIII and XXVII of the 
Public Health Service Act, and the Clinical Laboratory Improvement 
Amendments of 1988, not to exceed $2,246,326,000, to be transferred from 
the Federal Hospital Insurance and the Federal Supplementary Medical 
Insurance Trust Funds, as authorized by section 201(g) of the Social 
Security Act; together with all funds collected in accordance with 
section 353 of the Public Health Service Act and such sums as may be 
collected from authorized user fees and the sale of data, which shall 
remain available until expended, and together with administrative fees 
collected relative to Medicare overpayment recovery activities, which 
shall remain available until expended: Provided, That all funds derived 
in accordance with 31 U.S.C. 9701 from organizations established under 
title XIII of the Public Health Service Act shall be credited to and 
available for carrying out the purposes of this appropriation: Provided 
further, That $18,000,000 appropriated under this heading for the 
managed care system redesign shall remain available until expended: 
Provided further, That $20,000,000 of the amount available for research, 
demonstration, and evaluation activities shall be available to continue 
carrying out demonstration projects on Medicaid coverage of community-
based attendant care services for people with disabilities which ensures 
maximum control by the consumer to select and manage their attendant 
care services: Provided further, That the Secretary of Health and Human 
Services is directed to enter into an agreement with the Mind-Body 
Institute of Boston, Massachusetts, to conduct a demonstration of a 
lifestyle modification program: Provided further, That $2,800,000 of the 
amount available for research, demonstration, and evaluation activities 
shall be awarded for administration, evaluation, quality monitoring and 
peer review of this lifestyle modification demonstration: Provided 
further, That $2,800,000 of the amount available for research, 
demonstration, and evaluation activities shall be awarded

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

to a joint application from the University of Pittsburgh, Case Western 
Reserve in Cleveland, Ohio, and Mt. Sinai Hospital in Miami, Florida, to 
use integrated nursing services and technology to implement daily 
monitoring of congestive heart failure patients in underserved 
populations in accordance with established clinical guidelines: Provided 
further, That $500,000 of the amount available for research, 
demonstration, and evaluation activities shall be awarded to the 
University of Pittsburgh Medical Center and University of Pennsylvania 
for a study of the efficacy of surgical versus non-surgical management 
of abdominal aneurysms: Provided further, That $650,000 of the amount 
available for research, demonstration, and evaluation activities shall 
be awarded to the Vascular Surgery Outcome Initiative at Dartmouth 
College: Provided further, That up to $300,000 of the amount available 
for research, demonstration, and evaluation activities shall be awarded 
to the United States-Mexico Border Counties Coalition for a study to 
determine the unreimbursed costs incurred to treat undocumented aliens 
for medical emergencies in southwest border States, their border 
counties, and hospitals within the jurisdiction of these States and 
counties: Provided further, That $1,700,000 of the amount available for 
research, demonstration, and evaluation activities shall be awarded to 
the AIDS Healthcare Foundation in Los Angeles for a demonstration of 
residential and outpatient treatment facilities: Provided further, That 
$350,000 of the amount available for research, demonstration, and 
evaluation activities shall be awarded to the Cook County, Illinois 
Bureau of Health for the Asthma Champion Initiative demonstration to 
reduce morbidity and mortality from asthma in high prevalence areas: 
Provided further, That $1,000,000 of the amount available for research, 
demonstration, and evaluation activities shall be awarded to the West 
Virginia University School of Medicine's Eye Center to test 
interventions and improve the quality of life for individuals with low 
vision, with a particular focus on the elderly: Provided further, That 
$1,000,000 of the amount available for research, demonstration, and 
evaluation activities shall be awarded to the Iowa Department of Public 
Health for the establishment and operation of a mercantile prescription 
drug purchasing cooperative or non-profit corporation demonstration: 
Provided further, That $691,000 of the amount available for research, 
demonstration, and evaluation activities shall be awarded to Ohio State 
University to determine the benefits of compliance packaging: Provided 
further, That $855,000 of the amount available for research, 
demonstration, and evaluation activities shall be awarded to Children's 
Hospice International for a demonstration project to provide a continuum 
of care for children with life-threatening conditions and their 
families: Provided further, That $921,000 of the amount available for 
research, demonstration, and evaluation activities shall be awarded to 
Equip for Equality for a demonstration project to document the impact of 
an independent investigative unit that will examine deaths or other 
serious allegations of abuse and neglect of people with disabilities at 
facilities in Illinois: Provided further, That $1,000,000 of the amount 
available for research, demonstration, and evaluation activities shall 
be awarded to Duke University Medical Center to demonstrate the 
potential savings in the Medicare program of a reimbursement system 
based on preventative care: Provided further, That $1,843,000 of the 
amount available for research, demonstration, and evaluation activities 
shall be awarded to Bucks County,

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

Pennsylvania, for a health improvement project: Provided further, That 
$255,000 of the amount available for research, demonstration, and 
evaluation activities shall be awarded to the LA Care Health Plan in Los 
Angeles, California, for a demonstration program to improve clinical 
data coordination among Medicaid providers: Provided further, That 
$646,000 of the amount available for research, demonstration, and 
evaluation activities shall be for the Shelby County Regional Medical 
Center to establish a Master Patient Index to determine patient 
Medicaid/TennCare eligibility: Provided further, That the Secretary of 
Health and Human Services is directed to collect fees in fiscal year 
2001 from Medicare+Choice organizations pursuant to section 1857(e)(2) 
of the Social Security Act and from eligible organizations with risk-
sharing contracts under section 1876 of that Act pursuant to section 
1876(k)(4)(D) of that Act.

      health maintenance organization loan and loan guarantee fund

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

                Administration for Children and Families

  payments to states for child support enforcement and family support 
                                programs

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

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

                    low income home energy assistance

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

                     refugee and entrant assistance

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

    payments to states for the child care and development block grant

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

                       social services block grant

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

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

specified under such subparagraph for a State to carry out State 
programs pursuant to title XX of such Act shall be 10 percent.

                 children and families services programs

                         (including rescissions)

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

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

                   promoting safe and stable families

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

       payments to states for foster care and adoption assistance

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

                         Administration on Aging

                         aging services programs

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

                         Office of the Secretary

                     general departmental management

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

                       office of inspector general

    For expenses necessary for the Office of Inspector General in 
carrying out the provisions of the Inspector General Act of 1978, as 
amended, $33,849,000: Provided, That of such amount, necessary sums are 
available for providing protective services to the Secretary and 
investigating non-payment of child support cases

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

for which non-payment is a Federal offense under 18 U.S.C. 228, each of 
which activities is hereby authorized in this and subsequent fiscal 
years.

                         office for civil rights

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

                             policy research

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

      retirement pay and medical benefits for commissioned officers

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

            public health and social services emergency fund

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

                           GENERAL PROVISIONS

    Sec. 201. Funds appropriated in this title shall be available for 
not to exceed $37,000 for official reception and representation expenses 
when specifically approved by the Secretary.
    Sec. 202. The Secretary shall make available through assignment not 
more than 60 employees of the Public Health Service to assist in child 
survival activities and to work in AIDS programs through and with funds 
provided by the Agency for International Development, the United Nations 
International Children's Emergency Fund or the World Health 
Organization.
    Sec. 203. None of the funds appropriated under this Act may be used 
to implement section 399L(b) of the Public Health Service Act or section 
1503 of the National Institutes of Health Revitalization Act of 1993, 
Public Law 103-43.
    Sec. 204. None of the funds appropriated in this Act for the 
National Institutes of Health and the Substance Abuse and Mental Health 
Services Administration shall be used to pay the salary

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

of an individual, through a grant or other extramural mechanism, at a 
rate in excess of Executive Level I.
    Sec. 205. None of the funds appropriated in this Act may be expended 
pursuant to section 241 of the Public Health Service Act, except for 
funds specifically provided for in this Act, or for other taps and 
assessments made by any office located in the Department of Health and 
Human Services, prior to the Secretary's preparation and submission of a 
report to the Committee on Appropriations of the Senate and of the House 
detailing the planned uses of such funds.

                           (transfer of funds)

    Sec. 206. Not to exceed 1 percent of any discretionary funds 
(pursuant to the Balanced Budget and Emergency Deficit Control Act of 
1985, as amended) which are appropriated for the current fiscal year for 
the Department of Health and Human Services in this Act may be 
transferred between appropriations, but no such appropriation shall be 
increased by more than 3 percent by any such transfer: Provided, That 
the Appropriations Committees of both Houses of Congress are notified at 
least 15 days in advance of any transfer.
    Sec. 207. The Director of the National Institutes of Health, jointly 
with the Director of the Office of AIDS Research, may transfer up to 3 
percent among institutes, centers, and divisions from the total amounts 
identified by these two Directors as funding for research pertaining to 
the human immunodeficiency virus: Provided, That the Congress is 
promptly notified of the transfer.
    Sec. 208. Of the amounts made available in this Act for the National 
Institutes of Health, the amount for research related to the human 
immunodeficiency virus, as jointly determined by the Director of the 
National Institutes of Health and the Director of the Office of AIDS 
Research, shall be made available to the ``Office of AIDS Research'' 
account. The Director of the Office of AIDS Research shall transfer from 
such account amounts necessary to carry out section 2353(d)(3) of the 
Public Health Service Act.
    Sec. 209. None of the funds appropriated in this Act may be made 
available to any entity under title X of the Public Health Service Act 
unless the applicant for the award certifies to the Secretary that it 
encourages family participation in the decision of minors to seek family 
planning services and that it provides counseling to minors on how to 
resist attempts to coerce minors into engaging in sexual activities.
    Sec. 210. None of the funds appropriated by this Act (including 
funds appropriated to any trust fund) may be used to carry out the 
Medicare+Choice program if the Secretary denies participation in such 
program to an otherwise eligible entity (including a Provider Sponsored 
Organization) because the entity informs the Secretary that it will not 
provide, pay for, provide coverage of, or provide referrals for 
abortions: Provided, That the Secretary shall make appropriate 
prospective adjustments to the capitation payment to such an entity 
(based on an actuarially sound estimate of the expected costs of 
providing the service to such entity's enrollees): Provided further, 
That nothing in this section shall be construed to change the Medicare 
program's coverage for such services and a Medicare+Choice organization 
described in this section shall be responsible for informing enrollees 
where to obtain information about all Medicare covered services.

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

    Sec. 211. Notwithstanding any other provision of law, no provider of 
services under title X of the Public Health Service Act shall be exempt 
from any State law requiring notification or the reporting of child 
abuse, child molestation, sexual abuse, rape, or incest.
    Sec. 212. The Foreign Operations, Export Financing, and Related 
Programs Appropriations Act, 1990 (Public Law 101-167) is amended--
            (1) in section 599D (8 U.S.C. 1157 note)--
                    (A) in subsection (b)(3), by striking ``1997, 1998, 
                1999, and 2000'' and inserting ``1997, 1998, 1999, 2000, 
                and 2001''; and
                    (B) in subsection (e), by striking ``October 1, 
                2000'' each place it appears and inserting ``October 1, 
                2001''; and
            (2) in section 599E (8 U.S.C. 1255 note) in subsection 
        (b)(2), by striking ``September 30, 2000'' and inserting 
        ``September 30, 2001''.

    Sec. 213. None of the funds provided in this Act or in any other Act 
making appropriations for fiscal year 2001 may be used to administer or 
implement in Arizona or in the Kansas City, Missouri or in the Kansas 
City, Kansas area the Medicare Competitive Pricing Demonstration Project 
(operated by the Secretary of Health and Human Services).
    Sec. 214. (a) Except as provided by subsection (e) none of the funds 
appropriated by this Act may be used to withhold substance abuse funding 
from a State pursuant to section 1926 of the Public Health Service Act 
(42 U.S.C. 300x-26) if such State certifies to the Secretary of Health 
and Human Services by March 1, 2001 that the State will commit 
additional State funds, in accordance with subsection (b), to ensure 
compliance with State laws prohibiting the sale of tobacco products to 
individuals under 18 years of age.
    (b) The amount of funds to be committed by a State under subsection 
(a) shall be equal to 1 percent of such State's substance abuse block 
grant allocation for each percentage point by which the State misses the 
retailer compliance rate goal established by the Secretary of Health and 
Human Services under section 1926 of such Act.
    (c) The State is to maintain State expenditures in fiscal year 2001 
for tobacco prevention programs and for compliance activities at a level 
that is not less than the level of such expenditures maintained by the 
State for fiscal year 2000, and adding to that level the additional 
funds for tobacco compliance activities required under subsection (a). 
The State is to submit a report to the Secretary on all fiscal year 2000 
State expenditures and all fiscal year 2001 obligations for tobacco 
prevention and compliance activities by program activity by July 31, 
2001.
    (d) The Secretary shall exercise discretion in enforcing the timing 
of the State obligation of the additional funds required by the 
certification described in subsection (a) as late as July 31, 2001.
    (e) None of the funds appropriated by this Act may be used to 
withhold substance abuse funding pursuant to section 1926 from a 
territory that receives less than $1,000,000.

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

    Sec. 215. Section 448 of the Public Health Service Act (42 U.S.C. 
285g) is amended by inserting ``gynecologic health,'' after ``with 
respect to''.
    Sec. 216. None of the funds appropriated under this Act shall be 
expended by the National Institutes of Health on a contract for the care 
of the 288 chimpanzees acquired by the National Institutes of Health 
from the Coulston Foundation, unless the contractor is accredited by the 
Association for the Assessment and Accreditation of Laboratory Animal 
Care International or has a Public Health Services assurance, and has 
not been charged multiple times with egregious violations of the Animal 
Welfare Act: Provided, That the requirements of section 481(A)(e)(1) 
shall not apply to funds awarded to nonhuman primate research facilities 
of special interest to NIH.
    Sec. 217. No grants may be awarded under the first paragraph under 
the heading ``Department of Health and Human Services, Health Resources 
and Services Administration, Health Resources and Services'' in chapter 
4 of title II of the Emergency Supplemental Act, 2000 (Public Law 106-
246, division B) until March 1, 2001.
    Sec. 218. (a) The second sentence of section 5948(d) of title 5, 
United States Code, is amended to read as follows: ``No agreement shall 
be entered into under this section later than September 30, 2005, nor 
shall any agreement cover a period of service extending beyond September 
30, 2007.''.
    (b) Section 3 of the Federal Physicians Comparability Allowance Act 
of 1978 (5 U.S.C. 5948 note) is amended by striking ``September 30, 
2002'' and inserting ``September 30, 2007''.
    Sec. 219. (a) Congress makes the following findings:
            (1) Organ procurement organizations play an important role 
        in the effort to increase organ donation in the United States.
            (2) The current process for the certification and 
        recertification of organ procurement organizations conducted by 
        the Department of Health and Human Services has created a level 
        of uncertainty that is interfering with the effectiveness of 
        organ procurement organizations in raising the level of organ 
        donation.
            (3) The General Accounting Office, the Institute of 
        Medicine, and the Harvard School of Public Health have 
        identified substantial limitations in the organ procurement 
        organization certification and recertification process and have 
        recommended changes in that process.
            (4) The limitations in the recertification process include:
                    (A) An exclusive reliance on population-based 
                measures of performance that do not account for the 
                potential in the population for organ donation and do 
                not permit consideration of other outcome and process 
                standards that would more accurately reflect the 
                relative capability and performance of each organ 
                procurement organization.
                    (B) A lack of due process to appeal to the Secretary 
                of Health and Human Services for recertification on 
                either substantive or procedural grounds.
            (5) The Secretary of Health and Human Services has the 
        authority under section 1138(b)(1)(A)(i) of the Social Security 
        Act (42 U.S.C. 1320b-8(b)(1)(A)(i)) to extend the period for 
        recertification of an organ procurement organization from 2

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

        to 4 years on the basis of its past practices in order to avoid 
        the inappropriate disruption of the nation's organ system.
            (6) The Secretary of Health and Human Services can use the 
        extended period described in paragraph (5) for recertification 
        of all organ procurement organizations to--
                    (A) develop improved performance measures that would 
                reflect organ donor potential and interim outcomes, and 
                to test these measures to ensure that they accurately 
                measure performance differences among the organ 
                procurement organizations; and
                    (B) improve the overall certification process by 
                incorporating process as well as outcome performance 
                measures, and developing equitable processes for 
                appeals.

    (b) Section 371(b)(1) of the Public Health Service Act (42 U.S.C. 
273(b)(1)) is amended--
            (1) by redesignating subparagraphs (D) through (G) as 
        subparagraphs (E) through (H), respectively;
            (2) by realigning the margin of subparagraph (F) (as so 
        redesignated) so as to align with subparagraph (E) (as so 
        redesignated); and
            (3) by inserting after subparagraph (C) the following:
            ``(D) notwithstanding any other provision of law, has met 
        the other requirements of this section and has been certified or 
        recertified by the Secretary within the previous 4-year period 
        as meeting the performance standards to be a qualified organ 
        procurement organization through a process that either--
                    ``(i) granted certification or recertification 
                within such 4-year period with such certification or 
                recertification in effect as of January 1, 2000, and 
                remaining in effect through the earlier of--
                          ``(I) January 1, 2002; or
                          ``(II) the completion of recertification under 
                      the requirements of clause (ii); or
                    ``(ii) is defined through regulations that are 
                promulgated by the Secretary by not later than January 
                1, 2002, that--
                          ``(I) require recertifications of qualified 
                      organ procurement organizations not more 
                      frequently than once every 4 years;
                          ``(II) rely on outcome and process performance 
                      measures that are based on empirical evidence, 
                      obtained through reasonable efforts, of organ 
                      donor potential and other related factors in each 
                      service area of qualified organ procurement 
                      organizations;
                          ``(III) use multiple outcome measures as part 
                      of the certification process; and
                          ``(IV) provide for a qualified organ 
                      procurement organization to appeal a 
                      decertification to the Secretary on substantive 
                      and procedural grounds;''.

    Sec. 220. (a) In order for the Centers for Disease Control and 
Prevention to carry out international HIV/AIDS and other infectious 
disease, chronic and environmental disease, and other health activities 
abroad during fiscal year 2001, the Secretary of Health and Human 
Services is authorized to--
            (1) utilize the authorities contained in subsection 2(c) of 
        the State Department Basic Authorities Act of 1956, as amended, 
        subject to the limitations set forth in subsection (b), and

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

            (2) enter into reimbursable agreements with the Department 
        of State using any funds appropriated to the Department of 
        Health and Human Services, for the purposes for which the funds 
        were appropriated in accordance with authority granted to the 
        Secretary of Health and Human Services or under authority 
        governing the activities of the Department of State.

    (b) In exercising the authority set forth in subsection (a)(1), the 
Secretary of Health and Human Services--
            (1) shall not award contracts for performance of an 
        inherently governmental function; and
            (2) shall follow otherwise applicable Federal procurement 
        laws and regulations to the maximum extent practicable.

    Sec. 221. Notwithstanding any other provision of law, the Director, 
National Institutes of Health, may enter into and administer a long-term 
lease for facilities for the purpose of providing laboratory, office and 
other space for biomedical and behavioral research at the Bayview Campus 
in Baltimore, Maryland: Provided, That the House and Senate 
Appropriations Committees will be notified of the terms and conditions 
of the lease upon its execution.
    Sec. 222. Of the funds appropriated in this Act for the National 
Institutes of Health, $5,800,000 shall be transferred to the Office of 
the Secretary, General Departmental Management to support the newly 
established Office for Human Research Protections.
    Sec. 223. Section 487E(a)(1) of the Public Health Service Act is 
amended by striking ``as employees of the National Institutes of 
Health''.
    Sec. 224. Notwithstanding any other provision of law relating to 
vacancies in offices for which appointments must be made by the 
President, including any time limitation on serving in an acting 
capacity, the Acting Director of the National Institutes of Health as of 
January 12, 2000, may serve in that position until a new Director of the 
National Institutes of Health is confirmed by the Senate.
    Sec. 225. The National Neuroscience Research Center to be 
constructed on the National Institutes of Health Bethesda campus is 
hereby named the John Edward Porter Neuroscience Research Center.
    This title may be cited as the ``Department of Health and Human 
Services Appropriations Act, 2001''.

                   TITLE III--DEPARTMENT OF EDUCATION

                            education reform

    For carrying out activities authorized by title IV of the Goals 
2000: Educate America Act as in effect prior to September 30, 2000, and 
sections 3122, 3132, 3136, and 3141, parts B, C, and D of title III, and 
section 10105 and part I of title X of the Elementary and Secondary 
Education Act of 1965, $1,880,710,000, of which $38,000,000 shall be for 
the Goals 2000: Educate America Act, and of which $191,950,000 shall be 
for section 3122: Provided, That up to one-half of 1 percent of the 
amount available under section 3132 shall be set aside for the outlying 
areas, to be distributed on the basis of their relative need as 
determined by the Secretary in accordance with the purposes of the 
program: Provided further, That if any State educational agency does not 
apply for a grant under section 3132, that State's allotment under 
section

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

3131 shall be reserved by the Secretary for grants to local educational 
agencies in that State that apply directly to the Secretary according to 
the terms and conditions published by the Secretary in the Federal 
Register: Provided further, That with respect to all funds appropriated 
to carry out section 10901 et seq. in this Act, the Secretary shall 
strongly encourage applications for grants that are to be submitted 
jointly by a local educational agency (or a consortium of local 
educational agencies) and a community-based organization that has 
experience in providing before- and after-school services and all 
applications submitted to the Secretary shall contain evidence that the 
project contains elements that are designed to assist students in 
meeting or exceeding State and local standards in core academic 
subjects, as appropriate to the needs of participating children: 
Provided further, That $125,000,000, which shall become available on 
July 1, 2001, and remain available through September 30, 2002, shall be 
available to support activities under section 10105 of part A of title X 
of the Elementary and Secondary Education Act of 1965, of which up to 6 
percent shall become available October 1, 2000, and be available for 
evaluation, technical assistance, school networking, peer review of 
applications, and program outreach activities: Provided further, That 
funds made available to local educational agencies under this section 
shall be used only for activities related to establishing smaller 
learning communities in high schools: Provided further, That $46,328,000 
of the funds available to carry out section 3136 of the Elementary and 
Secondary Education Act of 1965, $8,768,000 of the funds available to 
carry out part B of title III of that Act and $20,614,000 of the funds 
available to carry out part I of title X of that Act shall be available 
for the projects and in the amounts specified in the statement of the 
managers on the conference report accompanying this Act.

                     education for the disadvantaged

    For carrying out title I of the Elementary and Secondary Education 
Act of 1965, and section 418A of the Higher Education Act of 1965, 
$9,532,621,000, of which $2,731,921,000 shall become available on July 
1, 2001, and shall remain available through September 30, 2002, and of 
which $6,758,300,000 shall become available on October 1, 2001 and shall 
remain available through September 30, 2002, for academic year 2001-
2002: Provided, That $7,332,721,000 shall be available for basic grants 
under section 1124: Provided further, That $225,000,000 of these funds 
shall be allocated among the States in the same proportion as funds are 
allocated among the States under section 1122, to carry out section 
1116(c): Provided further, That 100 percent of these funds shall be 
allocated by States to local educational agencies for the purposes of 
carrying out section 1116(c): Provided further, That all local 
educational agencies receiving an allocation under the preceding 
proviso, and all other local educational agencies that are within a 
State that receives funds under part A of title I of the Elementary and 
Secondary Education Act of 1965 (other than a local educational agency 
within a State receiving a minimum grant under section 1124(d) or 
1124A(a)(1)(B) of such Act), shall provide all students enrolled in a 
school identified under section 1116(c) with the option to transfer to 
another public school within the local educational agency, including a 
public charter school, that has not been identified for school 
improvement under section

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

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

                               impact aid

    For carrying out programs of financial assistance to federally 
affected schools authorized by title VIII of the Elementary and 
Secondary Education Act of 1965, $993,302,000, of which $882,000,000 
shall be for basic support payments under section

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

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

                       school improvement programs

    For carrying out school improvement activities authorized by titles 
II, IV, V-A and B, VI, IX, X, and XIII of the Elementary and Secondary 
Education Act of 1965 (``ESEA''); the McKinney-Vento Homeless Assistance 
Act; and the Civil Rights Act of 1964 and part B of title VIII of the 
Higher Education Amendments of 1998; $4,872,084,000, of which 
$2,403,750,000 shall become available on July 1, 2001, and remain 
available through September 30, 2002, and of which $1,765,000,000 shall 
become available on October 1, 2001 and shall remain available through 
September 30, 2002 for academic year 2001-2002: Provided, That 
$485,000,000 shall be available for Eisenhower professional development 
State grants under part B of title II of the Elementary and Secondary 
Education Act of 1965: Provided further, That each local educational 
agency shall use funds in excess of the allocation it received under 
such part for the preceding fiscal year to improve teacher quality by 
reducing the percentage of teachers who do not have State certification 
or are certified through emergency or provisional means; are teaching 
out of field in some or all of the subject areas and grade levels in 
which they teach; or who lack sufficient content knowledge to teach 
effectively in the areas they teach to obtain that knowledge: Provided 
further, That the local educational agency may also use such excess 
funds for: activities authorized under section 2210 of the Elementary 
and Secondary Education Act of 1965; mentoring programs for new 
teachers; providing opportunities for teachers to attend multi-week 
institutes, such as those provided in the summer months, that provide 
intensive professional development in partnership with local educational 
agencies; and carrying out initiatives to promote the retention of

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

highly qualified teachers who have a record of success in helping low-
achieving students improve their academic success: Provided further, 
That each State educational agency may use such excess funds to carry 
out activities under section 2207 of the Elementary and Secondary 
Education Act of 1965: Provided further, That each State agency for 
higher education may use such excess funds to carry out activities under 
section 2211 of the Elementary and Secondary Education Act of 1965: 
Provided further, That both State educational agencies and State 
agencies for higher education may also use such excess funds for multi-
week institutes, such as those provided in the summer months, that 
provide intensive professional development in partnership with local 
educational agencies; and grants to partnerships of such entities as 
local educational agencies, institutions of higher education, and 
private business, to recruit, and prepare, and provide professional 
development to, and help retain, school principals and superintendents, 
especially for such individuals who serve, or are preparing to serve, in 
high-poverty, low-performing schools and local educational agencies: 
Provided further, That such activities may be undertaken in consortium 
with other States: Provided further, That of the funds appropriated for 
part B of title II of the Elementary and Secondary Education Act of 
1965, $45,000,000 shall be available to States and allocated in 
accordance with section 2202(b) of that Act (except that the 
requirements of section 2203 shall not apply): Provided further, That 
notwithstanding any other provision of law, each State shall use the 
amount made available under the preceding proviso to support efforts to 
meet the requirements for State eligibility for the Ed-Flex Partnership 
Act of 1999 or the requirements under section 1111 of title I of the 
Elementary and Secondary Education Act of 1965: Provided further, That 
$44,000,000 shall be available for national activities under section 
2102 of the Elementary and Secondary Education Act of 1965: Provided 
further, That of the amount available in the preceding proviso, 
$3,000,000 shall be made available to the Secretary for the Troops-to-
Teachers Program for transfer to the Defense Activity for Non-
Traditional Education Support of the Department of Defense: Provided 
further, That the funds transferred under the preceding proviso shall be 
used by the Secretary of Defense to administer the Troops-to-Teachers 
Program, including the selection of participants in the Program under 
the Troops-to-Teachers Program Act of 1999 (title XVII of Public Law 
106-65; 20 U.S.C. 9301 et seq.): Provided further, That for purposes of 
sections 1702(b) and (c) of the Troops-to-Teachers Program Act of 1999, 
the Secretary of Education shall be the administering Secretary and may, 
at the Secretary's discretion, carry out the activities under section 
1702(c) of that Act and retain a portion of the funds made available for 
the Troops-to-Teachers Program to carry out section 1702(b) and (c) of 
that Act: Provided further, That of the amount made available under this 
heading for national activities under section 2102 of the Elementary and 
Secondary Education Act of 1965, the Secretary is authorized to use a 
portion of such funds to carry out activities to improve the knowledge 
and skills of early childhood educators and caregivers who work in urban 
or rural communities with high concentrations of young children living 
in poverty: Provided further, That of the amount appropriated, 
$3,208,000,000 shall be for title VI of the Elementary and Secondary 
Education Act of 1965 and to carry out activities under part B of the 
Individuals with Disabilities

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

Education Act (20 U.S.C. 1411 et seq.): Provided further, That of the 
amount made available for title VI, $1,623,000,000 shall be available, 
notwithstanding any other provision of law, in accordance with section 
306 of this Act in order to reduce class size, particularly in the early 
grades, using highly qualified teachers to improve educational 
achievement for regular and special needs children: Provided further, 
That of the amount made available for title VI, $1,200,000,000 shall be 
available, notwithstanding any other provision of law, for grants for 
school repair and renovation, activities under part B of the Individuals 
with Disabilities Education Act (20 U.S.C. 1411 et seq.), and technology 
activities, in accordance with section 321 of this Act: Provided 
further, That funds made available under this heading to carry out 
section 6301(b) of the Elementary and Secondary Education Act of 1965 
shall be available for education reform projects that provide same 
gender schools and classrooms, consistent with applicable law: Provided 
further, That of the amount made available to carry out activities 
authorized under part C of title IX of the Elementary and Secondary 
Education Act of 1965, $1,000,000 shall be for the Alaska Humanities 
Forum for operation of the Rose student exchange program and $1,000,000 
shall be for the Alaska Native Heritage Center to support its program of 
cultural education activities: Provided further, That of the amount made 
available for subpart 2 of part A of title IV of the Elementary and 
Secondary Education Act of 1965, $10,000,000, to remain available until 
expended, shall be for Project School Emergency Response to Violence to 
provide education-related services to local educational agencies in 
which the learning environment has been disrupted due to a violent or 
traumatic crisis.

                           reading excellence

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

                            indian education

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

                    bilingual and immigrant education

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

                            special education

    For carrying out the Individuals with Disabilities Education Act, 
$7,439,948,000, of which $2,090,452,000 shall become available for 
obligation on July 1, 2001, and shall remain available through September 
30, 2002, and of which $5,072,000,000 shall become

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

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

             rehabilitation services and disability research

    For carrying out, to the extent not otherwise provided, the 
Rehabilitation Act of 1973, the Assistive Technology Act of 1998, and 
the Helen Keller National Center Act, $2,805,339,000: Provided, That the 
funds provided for title I of the Assistive Technology Act of 1998 
(``the AT Act'') shall be allocated notwithstanding section 105(b)(1) of 
the AT Act: Provided further, That each State shall be provided $50,000 
for activities under section 102 of the AT Act: Provided further, That 
$15,000,000 shall be used to support grants for up to 3 years to States 
under title III of the AT Act, of which the Federal share shall not 
exceed 75 percent in the first year, 50 percent in the second year, and 
25 percent in the third year, and that the requirements in section 
301(c)(2) and section 302 of that Act shall not apply to such grants: 
Provided further, That $4,600,000 of the funds for section 303 of the 
Rehabilitation Act of 1973 shall be available for the projects and in 
the amounts specified in the statement of the managers on the conference 
report accompanying this Act: Provided further, That $400,000 of the 
funds for title II of the Rehabilitation Act of 1973 shall be for the 
Cerebral Palsy Research Foundation in Wichita, Kansas for the 
establishment of a Rehabilitation Research and Training Center to study 
and recommend incentives for employers to hire persons with significant 
disabilities.

           Special Institutions for Persons With Disabilities

                  american printing house for the blind

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

                national technical institute for the deaf

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

                          gallaudet university

    For the Kendall Demonstration Elementary School, the Model Secondary 
School for the Deaf, and the partial support of Gallaudet

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

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

                     vocational and adult education

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

                      student financial assistance

    For carrying out subparts 1, 3, and 4 of part A, section 428K, part 
C and part E of title IV of the Higher Education Act of 1965, as 
amended, $10,674,000,000, which shall remain available through September 
30, 2002.
    The maximum Pell Grant for which a student shall be eligible during 
award year 2001-2002 shall be $3,750: Provided, That notwithstanding 
section 401(g) of the Act, if the Secretary determines,

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

prior to publication of the payment schedule for such award year, that 
the amount included within this appropriation for Pell Grant awards in 
such award year, and any funds available from the fiscal year 2000 
appropriation for Pell Grant awards, are insufficient to satisfy fully 
all such awards for which students are eligible, as calculated under 
section 401(b) of the Act, the amount paid for each such award shall be 
reduced by either a fixed or variable percentage, or by a fixed dollar 
amount, as determined in accordance with a schedule of reductions 
established by the Secretary for this purpose.

              federal family education loan program account

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

                            higher education

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

                            howard university

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

          college housing and academic facilities loans program

    For Federal administrative expenses authorized under section 121 of 
the Higher Education Act of 1965, $762,000 to carry out

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

activities related to existing facility loans entered into under the 
Higher Education Act of 1965.

  historically black college and university capital financing program 
                                 account

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

             education research, statistics, and improvement

    For carrying out activities authorized by the Educational Research, 
Development, Dissemination, and Improvement Act of 1994, including part 
E; the National Education Statistics Act of 1994, including sections 411 
and 412; section 2102 of title II, parts A, B, K, and L and sections 
10102 and 10601 of title X, and part C of title XIII of the Elementary 
and Secondary Education Act of 1965, as amended, and title VI of Public 
Law 103-227, $732,721,000: Provided, That of the funds appropriated for 
part A of title X of the Elementary and Secondary Education Act of 1965, 
as amended, $5,000,000 shall be made available for a high school reform 
program of grants to State educational agencies to improve academic 
performance and provide technical skills training: Provided further, 
That of the funds appropriated for part A of title X of the Elementary 
and Secondary Education Act of 1965, as amended, $5,000,000 shall be 
made available to carry out part L of title X of the Act: Provided 
further, That of the amount available for part A of title X of the 
Elementary and Secondary Education Act of 1965, as amended, $5,000,000 
shall be available for grants to State and local educational agencies, 
in collaboration with other agencies and organizations, for school 
dropout prevention programs designed to address the needs of populations 
or communities with the highest dropout rates: Provided further, That of 
the amount made available for part A of title X of the Elementary and 
Secondary Education Act of 1965, as amended, $50,000,000 shall be made 
available to enable the Secretary of Education to award grants to 
develop, implement, and strengthen programs to teach American history 
(not social studies) as a separate subject within school curricula: 
Provided further, That $53,000,000 of the amount available for the 
national education research institutes shall be allocated 
notwithstanding section 912(m)(1)(B-F) and subparagraphs (B) and (C) of 
section 931(c)(2) of Public Law 103-227 and $20,000,000 of that 
$53,000,000 shall be made available for the Interagency Education 
Research Initiative: Provided further, That of the funds appropriated 
for part A of title X of the Elementary and Secondary Education Act, as 
amended, $50,000,000 shall be available to demonstrate effective 
approaches to comprehensive school reform, to be allocated and expended 
in accordance with the instructions relating to this activity in the 
statement of managers on the conference report accompanying Public Law 
105-78 and in the statement of the managers on the conference

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

report accompanying Public Law 105-277: Provided further, That the funds 
made available for comprehensive school reform shall become available on 
July 1, 2001, and remain available through September 30, 2002, and in 
carrying out this initiative, the Secretary and the States shall support 
only approaches that show the most promise of enabling children to meet 
challenging State content standards and challenging State student 
performance standards based on reliable research and effective 
practices, and include an emphasis on basic academics and parental 
involvement: Provided further, That $139,624,000 of the funds for 
section 10101 of the Elementary and Secondary Education Act of 1965 
shall be available for the projects and in the amounts specified in the 
statement of the managers on the conference report accompanying this 
Act: Provided further, That of the funds appropriated under section 
10601 of title X of the Elementary and Secondary Education Act of 1965, 
as amended, $2,000,000 shall be used to conduct a violence prevention 
demonstration program: Provided further, That of the funds available for 
section 10601 of title X of the Elementary and Secondary Education Act 
of 1965, as amended, $150,000 shall be awarded to the Center for 
Educational Technologies to complete production and distribution of an 
effective CD-ROM product that would complement the ``We the People: The 
Citizen and the Constitution'' curriculum: Provided further, That, of 
the funds for title VI of Public Law 103-227 and notwithstanding the 
provisions of section 601(c)(1)(C) of that Act, $1,200,000 shall be 
available to the Center for Civic Education to conduct a civic education 
program with Northern Ireland and the Republic of Ireland and, 
consistent with the civics and Government activities authorized in 
section 601(c)(3) of Public Law 103-227, to provide civic education 
assistance to democracies in developing countries. The term ``developing 
countries'' shall have the same meaning as the term ``developing 
country'' in the Education for the Deaf Act.

                         Departmental Management

                         program administration

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

                         office for civil rights

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

                     office of the inspector general

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

                           GENERAL PROVISIONS

    Sec. 301. No funds appropriated in this Act may be used for the 
transportation of students or teachers (or for the purchase of equipment 
for such transportation) in order to overcome racial

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

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

                           (transfer of funds)

    Sec. 304. Not to exceed 1 percent of any discretionary funds 
(pursuant to the Balanced Budget and Emergency Deficit Control Act of 
1985, as amended) which are appropriated for the Department of Education 
in this Act may be transferred between appropriations, but no such 
appropriation shall be increased by more than 3 percent by any such 
transfer: Provided, That the Appropriations Committees of both Houses of 
Congress are notified at least 15 days in advance of any transfer.
    Sec. 305. The Comptroller General of the United States shall 
evaluate the extent to which funds made available under part A of title 
I of the Elementary and Secondary Education Act of 1965 are allocated to 
schools and local educational agencies with the greatest concentrations 
of school-age children from low-income families, the extent to which 
allocations of such funds adjust to shifts in concentrations of pupils 
from low-income families in different regions, States, and substate 
areas, the extent to which the allocation of such funds encourages the 
targeting of State funds to areas with higher concentrations of children 
from low-income families, and the implications of current distribution 
methods for such funds, shall make formula and other policy 
recommendations to improve the targeting of such funds to more 
effectively serve low-income children in both rural and urban areas, and 
shall prepare interim and final reports based on the results of the 
study, to be submitted to Congress not later than February 1, 2001, and 
April 1, 2001.
    Sec. 306. (a) From the amount appropriated for title VI of the 
Elementary and Secondary Education Act of 1965 in accordance with this 
section, the Secretary of Education--
            (1) shall make available a total of $6,000,000 to the 
        Secretary of the Interior (on behalf of the Bureau of Indian 
        Affairs) and the outlying areas for activities under this 
        section; and
            (2) shall allocate the remainder by providing each State the 
        same percentage of that remainder as it received of the funds 
        allocated to States under section 307(a)(2) of the Department of 
        Education Appropriations Act, 1999.

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

    (b)(1) Each State that receives funds under this section shall 
distribute 100 percent of such funds to local educational agencies, of 
which--
            (A) 80 percent of such amount shall be allocated to such 
        local educational agencies in proportion to the number of 
        children, aged 5 to 17, who reside in the school district served 
        by such local educational agency from families with incomes 
        below the poverty line (as defined by the Office of Management 
        and Budget and revised annually in accordance with section 
        673(2) of the Community Services Block Grant Act (42 U.S.C. 
        9902(2))) applicable to a family of the size involved for the 
        most recent fiscal year for which satisfactory data are 
        available compared to the number of such individuals who reside 
        in the school districts served by all the local educational 
        agencies in the State for that fiscal year; and
            (B) 20 percent of such amount shall be allocated to such 
        local educational agencies in accordance with the relative 
        enrollments of children, aged 5 to 17, in public and private 
        nonprofit elementary and secondary schools within the boundaries 
        of such agencies.

    (2) Notwithstanding paragraph (1), if the award to a local 
educational agency under this section is less than the starting salary 
for a new fully qualified teacher in that agency, who is certified 
within the State (which may include certification through State or local 
alternative routes), has a baccalaureate degree, and demonstrates the 
general knowledge, teaching skills, and subject matter knowledge 
required to teach in his or her content areas, that agency may use funds 
under this section to (A) help pay the salary of a full- or part-time 
teacher hired to reduce class size, which may be in combination with 
other Federal, State, or local funds; or (B) pay for activities 
described in subsection (c)(2)(A)(iii) which may be related to teaching 
in smaller classes.
    (c)(1) The basic purpose and intent of this section is to reduce 
class size with fully qualified teachers. Each local educational agency 
that receives funds under this section shall use such funds to carry out 
effective approaches to reducing class size with fully qualified 
teachers who are certified within the State, including teachers 
certified through State or local alternative routes, and who demonstrate 
competency in the areas in which they teach, to improve educational 
achievement for both regular and special needs children, with particular 
consideration given to reducing class size in the early elementary 
grades for which some research has shown class size reduction is most 
effective.
    (2)(A) Each such local educational agency may use funds under this 
section for--
            (i) recruiting (including through the use of signing 
        bonuses, and other financial incentives), hiring, and training 
        fully qualified regular and special education teachers (which 
        may include hiring special education teachers to team-teach with 
        regular teachers in classrooms that contain both children with 
        disabilities and non-disabled children) and teachers of special-
        needs children who are certified within the State, including 
        teachers certified through State or local alternative routes, 
        have a baccalaureate degree and demonstrate the general 
        knowledge, teaching skills, and subject matter knowledge 
        required to teach in their content areas;

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

            (ii) testing new teachers for academic content knowledge and 
        to meet State certification requirements that are consistent 
        with title II of the Higher Education Act of 1965; and
            (iii) providing professional development (which may include 
        such activities as those described in section 2210 of the 
        Elementary and Secondary Education Act of 1965, opportunities 
        for teachers to attend multi-week institutes, such as those made 
        available during the summer months that provide intensive 
        professional development in partnership with local educational 
        agencies and initiatives that promote retention and mentoring), 
        to teachers, including special education teachers and teachers 
        of special-needs children, in order to meet the goal of ensuring 
        that all instructional staff have the subject matter knowledge, 
        teaching knowledge, and teaching skills necessary to teach 
        effectively in the content area or areas in which they provide 
        instruction, consistent with title II of the Higher Education 
        Act of 1965.

    (B)(i) Except as provided under clause (ii), a local educational 
agency may use not more than a total of 25 percent of the award received 
under this section for activities described in clauses (ii) and (iii) of 
subparagraph (A).
            (ii) A local educational agency in which 10 percent or more 
        of teachers in elementary schools, as defined by section 
        14101(14) of the Elementary and Secondary Education Act of 1965, 
        have not met applicable State and local certification 
        requirements (including certification through State or local 
        alternative routes), or if such requirements have been waived, 
        may use more than 25 percent of the funds it receives under this 
        section for activities described in subparagraph (A)(iii) to 
        help teachers who are not certified by the State become 
        certified, including through State or local alternative routes, 
        or to help teachers affected by class size reduction who lack 
        sufficient content knowledge to teach effectively in the areas 
        they teach to obtain that knowledge, if the local educational 
        agency notifies the State educational agency of the percentage 
        of the funds that it will use for the purpose described in this 
        clause.

    (C) A local educational agency that has already reduced class size 
in the early grades to 18 or less children (or has already reduced class 
size to a State or local class size reduction goal that was in effect on 
the day before the enactment of the Department of Education 
Appropriations Act, 2000, if that State or local educational agency goal 
is 20 or fewer children) may use funds received under this section--
            (i) to make further class size reductions in grades 
        kindergarten through 3;
            (ii) to reduce class size in other grades; or
            (iii) to carry out activities to improve teacher quality 
        including professional development.

    (D) If a local educational agency has already reduced class size in 
the early grades to 18 or fewer children and intends to use funds 
provided under this section to carry out professional development 
activities, including activities to improve teacher quality, then the 
State shall make the award under subsection (b) to the local educational 
agency.
    (3) Each such agency shall use funds under this section only to 
supplement, and not to supplant, State and local funds that,

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

in the absence of such funds, would otherwise be spent for activities 
under this section.
    (4) No funds made available under this section may be used to 
increase the salaries or provide benefits, other than participation in 
professional development and enrichment programs, to teachers who are 
not hired under this section. Funds under this section may be used to 
pay the salary of teachers hired under section 307 of the Department of 
Education Appropriations Act, 1999, or under section 310 of the 
Department of Education Appropriations Act, 2000.
    (d)(1) Each State receiving funds under this section shall report on 
activities in the State under this section, consistent with section 
6202(a)(2) of the Elementary and Secondary Education Act of 1965.
    (2) Each State and local educational agency receiving funds under 
this section shall publicly report to parents on its progress in 
reducing class size, increasing the percentage of classes in core 
academic areas taught by fully qualified teachers who are certified 
within the State and demonstrate competency in the content areas in 
which they teach, and on the impact that hiring additional highly 
qualified teachers and reducing class size, has had, if any, on 
increasing student academic achievement.
    (3) Each school receiving funds under this section shall provide to 
parents, upon request, the professional qualifications of their child's 
teacher.
    (e) If a local educational agency uses funds made available under 
this section for professional development activities, the agency shall 
ensure for the equitable participation of private nonprofit elementary 
and secondary schools in such activities. Section 6402 of the Elementary 
and Secondary Education Act of 1965 shall not apply to other activities 
under this section.
    (f ) A local educational agency that receives funds under this 
section may use not more than 3 percent of such funds for local 
administrative costs.
    (g) Each local educational agency that desires to receive funds 
under this section shall include in the application required under 
section 6303 of the Elementary and Secondary Education Act of 1965 a 
description of the agency's program to reduce class size by hiring 
additional highly qualified teachers.
    (h) No funds under this section may be used to pay the salary of any 
teacher hired with funds under section 307 of the Department of 
Education Appropriations Act, 1999, unless, by the start of the 2001-
2002 school year, the teacher is certified within the State (which may 
include certification through State or local alternative routes) and 
demonstrates competency in the subject areas in which he or she teaches.
    (i) Not later than 30 days after the date of the enactment of this 
Act, the Secretary shall provide specific notification to each local 
educational agency eligible to receive funds under this part regarding 
the flexibility provided under subsection (c)(2)(B)(ii) and the ability 
to use such funds to carry out activities described in subsection 
(c)(2)(A)(iii).
    Sec. 307. Section 412 of the National Education Statistics Act of 
1994 (Public Law 103-382) is amended--
            (1) in subsection 412(c)(1), after ``period of'' and before 
        ``years,'', by striking ``3'' and inserting ``4''; and
            (2) after ``expiration of such term.'', by adding the 
        following new subsection:

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

            ``(4) Conforming provision.--Members of the Board previously 
        granted 3 year terms, whose terms are in effect on the date of 
        enactment of the Department of Education Appropriations Act, 
        2001, shall have their terms extended by 1 year.''.

    Sec. 308. (a) Section 435(a)(2) of the Higher Education Act of 1965 
(20 U.S.C. 1085(a)(2)) is amended by adding at the end thereof the 
following new subparagraph:
    ``(D) Notwithstanding the first sentence of subparagraph (A), the 
Secretary shall restore the eligibility to participate in a program 
under subpart 1 of part A, part B, or part D of an institution that did 
not appeal its loss of eligibility within 30 days of receiving 
notification if the Secretary determines, on a case-by-case basis, that 
the institution's failure to appeal was substantially justified under 
the circumstances, and that--
            ``(i) the institution made a timely request that the 
        appropriate guaranty agency correct errors in the draft data 
        used to calculate the institution's cohort default rate;
            ``(ii) the guaranty agency did not correct the erroneous 
        data in a timely fashion; and
            ``(iii) the institution would have been eligible if the 
        erroneous data had been corrected by the guaranty agency.''.

    (b) The amendment made by subsection (a) of this section shall be 
effective for cohort default rate calculations for fiscal years 1997 and 
1998.
    Sec. 309. Section 439(r)(2) of the Higher Education Act of 1965 (20 
U.S.C. 1087-2(r)(2)) is amended--
            (1) in clause (A)(i), by striking ``auditors and examiners'' 
        and inserting ``and fix the compensation of such auditors and 
        examiners as may be necessary''; and
            (2) by inserting at the end of subparagraph (E) the 
        following new subparagraph:
                    ``(F) Compensation of auditors and examiners.--
                          ``(i) Rates of pay.--Rates of basic pay for 
                      all auditors and examiners appointed pursuant to 
                      subparagraph (A) may be set and adjusted by the 
                      Secretary of the Treasury without regard to the 
                      provisions of chapter 51 or subchapter III of 
                      chapter 53 of title 5, United States Code.
                          ``(ii) Comparability.--
                                    ``(I) In general.--Subject to 
                                section 5373 of title 5, United States 
                                Code, the Secretary of the Treasury may 
                                provide additional compensation and 
                                benefits to auditors and examiners 
                                appointed pursuant to subparagraph (A) 
                                if the same type of compensation or 
                                benefits are then being provided by any 
                                agency referred to in section 1206 of 
                                the Financial Institutions Reform, 
                                Recovery, and Enforcement Act of 1989 
                                (12 U.S.C. 1833b) or, if not then being 
                                provided, could be provided by such an 
                                agency under applicable provisions of 
                                law, rule, or regulation.
                                    ``(II) Consultation.--In setting and 
                                adjusting the total amount of 
                                compensation and benefits for auditors 
                                and examiners appointed pursuant to 
                                subparagraph (A), the Secretary of the 
                                Treasury shall consult with, and seek to 
                                maintain comparability with, the 
                                agencies referred to in section

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

                                1206 of the Financial Institutions 
                                Reform, Recovery, and Enforcement Act of 
                                1989 (12 U.S.C. 1833b).''.

    Sec. 310. Section 117(i) of the Carl D. Perkins Vocational and 
Technical Education Act of 1998 (20 U.S.C. 2327(i)) is amended by 
inserting ``such sums as may be necessary for'' before ``each of the 4 
succeeding fiscal years.''.
    Sec. 311. Section 432(m)(1) of the Higher Education Act of 1965 (20 
U.S.C. 1082(m)(1)) is amended--
            (1) by striking clause (iv) of subparagraph (D); and
            (2) by adding at the end the following new subparagraph:
                    ``(E) Perfection of security interests in student 
                loans.--
                          ``(i) In general.--Notwithstanding the 
                      provisions of any State law to the contrary, 
                      including the Uniform Commercial Code as in effect 
                      in any State, a security interest in loans made 
                      under this part, on behalf of any eligible lender 
                      (as defined in section 435(d)) shall attach, be 
                      perfected, and be assigned priority in the manner 
                      provided by the applicable State's law for 
                      perfection of security interests in accounts, as 
                      such law may be amended from time to time 
                      (including applicable transition provisions). If 
                      any such State's law provides for a statutory lien 
                      to be created in such loans, such statutory lien 
                      may be created by the entity or entities governed 
                      by such State law in accordance with the 
                      applicable statutory provisions that created such 
                      a statutory lien.
                          ``(ii) Collateral description.--In addition to 
                      any other method for describing collateral in a 
                      legally sufficient manner permitted under the laws 
                      of the State, the description of collateral in any 
                      financing statement filed pursuant to this 
                      subparagraph shall be deemed legally sufficient if 
                      it lists such loans, or refers to records 
                      (identifying such loans) retained by the secured 
                      party or any designee of the secured party 
                      identified in such financing statement, including 
                      the debtor or any loan servicer.
                          ``(iii) Sales.--Notwithstanding clauses (i) 
                      and (ii) and any provisions of any State law to 
                      the contrary, other than any such State's law 
                      providing for creation of a statutory lien, an 
                      outright sale of loans made under this part shall 
                      be effective and perfected automatically upon 
                      attachment as defined in the Uniform Commercial 
                      Code of such State.''.

    Sec. 312. Section 435(a)(5) of the Higher Education Act of 1965 (20 
U.S.C. 1085(a)(5)) is amended--
            (1) in subparagraph (A)(i), by striking ``July 1, 2002,'' 
        and inserting ``July 1, 2004,''; and
            (2) in subparagraph (B), by striking ``1999, 2000, and 
        2001'' and inserting ``1999 through 2003''.

    Sec. 313. From the amounts made available for the ``Fund for the 
Improvement of Education'' under the heading ``Education Research, 
Statistics, and Improvement'', $10,000,000, to remain available until 
expended, shall be available to the Secretary of Education to be 
transferred to the Secretary of the Interior for

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

an award to the National Constitution Center for construction activities 
authorized under Public Law 100-433.
    Sec. 314. Section 4116(b)(4) of the Elementary and Secondary 
Education Act of 1965 is amended by striking subparagraph (D) and 
inserting in lieu thereof: ``(D) the development and implementation of 
character education and training programs that reflect the values of 
parents, teachers, and local communities, and incorporate elements of 
good character, including honesty, citizenship, courage, justice, 
respect, personal responsibility, and trustworthiness; and''.
    Sec. 315. The Secretary of Education shall review the nursing 
program operated by Graceland University in Lamoni, Iowa, and may 
exercise the waiver authority provided in section 102(a)(3)(B) of the 
Higher Education Act of 1965, without regard to the provisions of 34 CFR 
600.7(b)(3)(ii), if the Secretary determines that such a waiver is 
appropriate.
    Sec. 316. Section 415 of the Higher Education Act of 1965 is 
amended--
            (1) in section 415A(a)(2), by striking ``section 415F'' and 
        inserting ``section 415E''; and
            (2) in section 415E, by striking 415E(c) and inserting in 
        lieu thereof the following:

    ``(c) Authorized Activities.--Each State receiving a grant under 
this section may use the grant funds for--
            ``(1) making awards that--
                    ``(A) supplement grants received under section 
                415C(b)(2) by eligible students who demonstrate 
                financial need; or
                    ``(B) provide grants under section 415C(b)(2) to 
                additional eligible students who demonstrate financial 
                need;
            ``(2) providing scholarships for eligible students--
                    ``(A) who demonstrate financial need; and
                    ``(B) who--
                          ``(i) desire to enter a program of study 
                      leading to a career in--
                                    ``(I) information technology;
                                    ``(II) mathematics, computer 
                                science, or engineering;
                                    ``(III) teaching; or
                                    ``(IV) another field determined by 
                                the State to be critical to the State's 
                                workforce needs; or
                          ``(ii) demonstrate merit or academic 
                      achievement; and
            ``(3) making awards that--
                    ``(A) supplement community service work-study awards 
                received under section 415C(b)(2) by eligible students 
                who demonstrate financial need; or
                    ``(B) provide community service work-study awards 
                under section 415C(b)(2) to additional eligible students 
                who demonstrate financial need.''.
            (3) in section 415E, adding at the end the following new 
        subsections:

    ``(f ) Special Rule.--Notwithstanding subsection (d), for purposes 
of determining a State's share of the cost of the authorized activities 
described in subsection (c), the State shall consider only those 
expenditures from non-Federal sources that exceed its total expenditures 
for need-based grants, scholarships, and work-study

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

assistance for fiscal year 1999 (including any such assistance provided 
under this subpart).
    ``(g) Use of Funds for Administrative Costs Prohibited.--A State 
receiving a grant under this section shall not use any of the grant 
funds to pay administrative costs associated with any of the authorized 
activities described in subsection (c).''.
    Sec. 317. (a) Section 402D of the Higher Education Act of 1965 (20 
U.S.C. 1070a-14) is amended--
            (1) by redesignating subsection (c) as subsection (d); and
            (2) by inserting after subsection (b) the following new 
        subsection:

    ``(c) Special Rule.--
            ``(1) Use for student aid.--A recipient of a grant that 
        undertakes any of the permissible services identified in 
        subsection (b) may, in addition, use such funds to provide grant 
        aid to students. A grant provided under this paragraph shall not 
        exceed the maximum appropriated Pell Grant or, be less than the 
        minimum appropriated Pell Grant, for the current academic year. 
        In making grants to students under this subsection, an 
        institution shall ensure that adequate consultation takes place 
        between the student support service program office and the 
        institution's financial aid office.
            ``(2) Eligible students.--For purposes of receiving grant 
        aid under this subsection, eligible students shall be current 
        participants in the student support services program offered by 
        the institution and be--
                    ``(A) students who are in their first 2 years of 
                postsecondary education and who are receiving Federal 
                Pell Grants under subpart 1; or
                    ``(B) students who have completed their first 2 
                years of postsecondary education and who are receiving 
                Federal Pell Grants under subpart 1 if the institution 
                demonstrates to the satisfaction of the Secretary that--
                          ``(i) these students are at high risk of 
                      dropping out; and
                          ``(ii) it will first meet the needs of all its 
                      eligible first- and second-year students for 
                      services under this paragraph.
            ``(3) Determination of need.--A grant provided to a student 
        under paragraph (1) shall not be considered in determining that 
        student's need for grant or work assistance under this title, 
        except that in no case shall the total amount of student 
        financial assistance awarded to a student under this title 
        exceed that student's cost of attendance, as defined in section 
        472.
            ``(4) Matching required.--A recipient of a grant who uses 
        such funds for the purpose described in paragraph (1) shall 
        match the funds used for such purpose, in cash, from non-Federal 
        funds, in an amount that is not less than 33 percent of the 
        total amount of funds used for that purpose. This paragraph 
        shall not apply to any grant recipient that is an institution of 
        higher education eligible to receive funds under part A or B of 
        title III or title V.
            ``(5) Reservation.--In no event may a recipient use more 
        than 20 percent of the funds received under this section for 
        grant aid.
            ``(6) Supplement, not supplant.--Funds received by a grant 
        recipient that are used under this subsection shall be

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

        used to supplement, and not supplant, non-Federal funds expended 
        for student support services programs.''.

    (b) The amendments made by subsection (a) shall apply with respect 
to student support services grants awarded on or after the date of 
enactment of this Act.
    Sec. 318. (a) Subparagraph (B) of section 427A(c)(4) of the Higher 
Education Act of 1965 (20 U.S.C. 1077a(c)(4)) is amended to read as 
follows:
                    ``(B)(i) For any 12-month period beginning on July 1 
                and ending on or before June 30, 2001, the rate 
                determined under this subparagraph is determined on the 
                preceding June 1 and is equal to--
                          ``(I) the bond equivalent rate of 52-week 
                      Treasury bills auctioned at the final auction held 
                      prior to such June 1; plus
                          ``(II) 3.25 percent.
                    ``(ii) For any 12-month period beginning on July 1 
                of 2001 or any succeeding year, the rate determined 
                under this subparagraph is determined on the preceding 
                June 26 and is equal to--
                          ``(I) the weekly average 1-year constant 
                      maturity Treasury yield, as published by the Board 
                      of Governors of the Federal Reserve System, for 
                      the last calendar week ending on or before such 
                      June 26; plus
                          ``(II) 3.25 percent.''.

    (b) Subparagraph (A) of section 455(b)(4) of such Act (20 U.S.C. 
1087e(b)(4)) is amended to read as follows:
                    ``(A)(i) For Federal Direct PLUS Loans for which the 
                first disbursement is made on or after July 1, 1994, the 
                applicable rate of interest shall, during any 12-month 
                period beginning on July 1 and ending on or before June 
                30, 2001, be determined on the preceding June 1 and be 
                equal to--
                          ``(I) the bond equivalent rate of 52-week 
                      Treasury bills auctioned at final auction held 
                      prior to such June 1; plus
                          ``(II) 3.1 percent,
                except that such rate shall not exceed 9 percent.
                    ``(ii) For any 12-month period beginning on July 1 
                of 2001 or any succeeding year, the applicable rate of 
                interest determined under this subparagraph shall be 
                determined on the preceding June 26 and be equal to--
                          ``(I) the weekly average 1-year constant 
                      maturity Treasury yield, as published by the Board 
                      of Governors of the Federal Reserve System, for 
                      the last calendar week ending on or before such 
                      June 26; plus
                          ``(II) 3.1 percent,
                except that such rate shall not exceed 9 percent.''.

    Sec. 319. Section 1543 of the Higher Education Amendments of 1992 
(20 U.S.C. 1070 note) is amended by adding at the end the following new 
subsection:
    ``(e) Designation.--Scholarships awarded under this section shall be 
known as `B.J. Stupak Olympic Scholarships'.''.
    Sec. 320. (a) Subject to subsection (c), the Secretary of Education 
shall release the reversionary interests that were retained by the 
United States, as part of the conveyance of certain real property 
situated in the County of Marin, State of California, in

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

an April 3, 1978 Quitclaim Deed, which was filed for record on June 5, 
1978, in Book 3384, at page 33, of the official Records of Marin County, 
California.
    (b) The Secretary shall execute the release of the reversionary 
interests under subsection (a) without consideration.
    (c) The Secretary shall execute and file in the appropriate office 
or offices a deed of release, amended deed, or other appropriate 
instruments effectuating the release of the reversionary interests under 
subsection (a). In all other respects the provisions of the April 3, 
1978 Quitclaim Deed shall remain intact.
    Sec. 321. (a) Grants to Native American Schools and State 
Educational Agencies.--
            (1) Allocation of funds.--Of the amount made available under 
        the heading ``School improvement programs'' for grants made in 
        accordance with this section for school repair and renovation, 
        activities under part B of the Individuals with Disabilities 
        Education Act (20 U.S.C. 1411 et seq.), and technology 
        activities, the Secretary of Education shall allocate--
                    (A) $75,000,000 for grants to impacted local 
                educational agencies (as defined in paragraph (3)) for 
                school repair, renovation, and construction;
                    (B) $3,250,000 for grants to outlying areas for 
                school repair and renovation in high-need schools and 
                communities, allocated on such basis, and subject to 
                such terms and conditions, as the Secretary determines 
                appropriate;
                    (C) $25,000,000 for grants to public entities, 
                private nonprofit entities, and consortia of such 
                entities, for use in accordance with subpart 2 of part C 
                of title X of the Elementary and Secondary Education Act 
                of 1965; and
                    (D) the remainder to State educational agencies in 
                proportion to the amount each State received under part 
                A of title I of the Elementary and Secondary Education 
                Act of 1965 (20 U.S.C. 6311 et seq.) for fiscal year 
                2000, except that no State shall receive less than 0.5 
                percent of the amount allocated under this subparagraph.
            (2) Determination of grant amount.--
                    (A) Determination of weighted student units.--For 
                purposes of computing the grant amounts under paragraph 
                (1)(A) for fiscal year 2001, the Secretary shall 
                determine the results obtained by the computation made 
                under section 8003 of the Elementary and Secondary 
                Education Act of 1965 (20 U.S.C. 7703) with respect to 
                children described in subsection (a)(1)(C) of such 
                section and computed under subsection (a)(2)(B) of such 
                section for such year--
                          (i) for each impacted local educational agency 
                      that receives funds under this section; and
                          (ii) for all such agencies together.
                    (B) Computation of payment.--For fiscal year 2001, 
                the Secretary shall calculate the amount of a grant to 
                an impacted local educational agency by--
                          (i) dividing the amount described in paragraph 
                      (1)(A) by the results of the computation described 
                      in subparagraph (A)(ii); and
                          (ii) multiplying the number derived under 
                      clause (i) by the results of the computation 
                      described in subparagraph (A)(i) for such agency.

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

            (3) Definition.--For purposes of this section, the term 
        ``impacted local educational agency'' means, for fiscal year 
        2001--
                    (A) a local educational agency that receives a basic 
                support payment under section 8003(b) of the Elementary 
                and Secondary Education Act of 1965 (20 U.S.C. 7703(b)) 
                for such fiscal year; and
                    (B) with respect to which the number of children 
                determined under section 8003(a)(1)(C) of such Act for 
                the preceding school year constitutes at least 50 
                percent of the total student enrollment in the schools 
                of the agency during such school year.

    (b) Within-State Allocations.--
            (1) Administrative costs.--
                    (A) State educational agency administration.--Except 
                as provided in subparagraph (B), each State educational 
                agency may reserve not more than 1 percent of its 
                allocation under subsection (a)(1)(D) for the purpose of 
                administering the distribution of grants under this 
                subsection.
                    (B) State entity administration.--If the State 
                educational agency transfers funds to a State entity 
                described in paragraph (2)(A), the agency shall transfer 
                to such entity 0.75 of the amount reserved under this 
                paragraph for the purpose of administering the 
                distribution of grants under this subsection.
            (2) Reservation for competitive school repair and renovation 
        grants to local educational agencies.--
                    (A) In general.--Subject to the reservation under 
                paragraph (1), of the funds allocated to a State 
                educational agency under subsection (a)(1)(D), the State 
                educational agency shall distribute 75 percent of such 
                funds to local educational agencies or, if such State 
                educational agency is not responsible for the financing 
                of education facilities, the agency shall transfer such 
                funds to the State entity responsible for the financing 
                of education facilities (referred to in this section as 
                the ``State entity'') for distribution by such entity to 
                local educational agencies in accordance with this 
                paragraph, to be used, consistent with subsection (c), 
                for school repair and renovation.
                    (B) Competitive grants to local educational 
                agencies.--
                          (i) In general.--The State educational agency 
                      or State entity shall carry out a program of 
                      competitive grants to local educational agencies 
                      for the purpose described in subparagraph (A). Of 
                      the total amount available for distribution to 
                      such agencies under this paragraph, the State 
                      educational agency or State entity, shall, in 
                      carrying out the competition--
                                    (I) award to high poverty local 
                                educational agencies described in clause 
                                (ii), in the aggregate, at least an 
                                amount which bears the same relationship 
                                to such total amount as the aggregate 
                                amount such local educational agencies 
                                received under part A of title I of the 
                                Elementary and Secondary Education Act 
                                of 1965 for fiscal year 2000 bears to 
                                the aggregate amount received for such 
                                fiscal year

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

                                under such part by all local educational 
                                agencies in the State;
                                    (II) award to rural local 
                                educational agencies in the State, in 
                                the aggregate, at least an amount which 
                                bears the same relationship to such 
                                total amount as the aggregate amount 
                                such rural local educational agencies 
                                received under part A of title I of the 
                                Elementary and Secondary Education Act 
                                of 1965 for fiscal year 2000 bears to 
                                the aggregate amount received for such 
                                fiscal year under such part by all local 
                                educational agencies in the State; and
                                    (III) award the remaining funds to 
                                local educational agencies not receiving 
                                an award under subclause (I) or (II), 
                                including high poverty and rural local 
                                educational agencies that did not 
                                receive such an award.
                          (ii) High poverty local educational 
                      agencies.--A local educational agency is described 
                      in this clause if--
                                    (I) the percentage described in 
                                subparagraph (C)(i) with respect to the 
                                agency is 30 percent or greater; or
                                    (II) the number of children 
                                described in such subparagraph with 
                                respect to the agency is at least 
                                10,000.
                    (C) Criteria for awarding grants.--In awarding 
                competitive grants under this paragraph, a State 
                educational agency or State entity shall take into 
                account the following criteria:
                          (i) The percentage of poor children 5 to 17 
                      years of age, inclusive, in a local educational 
                      agency.
                          (ii) The need of a local educational agency 
                      for school repair and renovation, as demonstrated 
                      by the condition of its public school facilities.
                          (iii) The fiscal capacity of a local 
                      educational agency to meet its needs for repair 
                      and renovation of public school facilities without 
                      assistance under this section, including its 
                      ability to raise funds through the use of local 
                      bonding capacity and otherwise.
                          (iv) In the case of a local educational agency 
                      that proposes to fund a repair or renovation 
                      project for a charter school or schools, the 
                      extent to which the school or schools have access 
                      to funding for the project through the financing 
                      methods available to other public schools or local 
                      educational agencies in the State.
                          (v) The likelihood that the local educational 
                      agency will maintain, in good condition, any 
                      facility whose repair or renovation is assisted 
                      under this section.
                    (D) Possible matching requirement.--
                          (i) In general.--A State educational agency or 
                      State entity may require local educational 
                      agencies to match funds awarded under this 
                      subsection.
                          (ii) Match amount.--The amount of a match 
                      described in clause (i) may be established by 
                      using a sliding scale that takes into account the 
                      relative

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

                      poverty of the population served by the local 
                      educational agency.
            (3) Reservation for competitive idea or technology grants to 
        local educational agencies.--
                    (A) In general.--Subject to the reservation under 
                paragraph (1), of the funds allocated to a State 
                educational agency under subsection (a)(1)(D), the State 
                educational agency shall distribute 25 percent of such 
                funds to local educational agencies through competitive 
                grant processes, to be used for the following:
                          (i) To carry out activities under part B of 
                      the Individuals with Disabilities Education Act 
                      (20 U.S.C. 1411 et seq.).
                          (ii) For technology activities that are 
                      carried out in connection with school repair and 
                      renovation, including--
                                    (I) wiring;
                                    (II) acquiring hardware and 
                                software;
                                    (III) acquiring connectivity 
                                linkages and resources; and
                                    (IV) acquiring microwave, fiber 
                                optics, cable, and satellite 
                                transmission equipment.
                    (B) Criteria for awarding idea grants.--In awarding 
                competitive grants under subparagraph (A) to be used to 
                carry out activities under part B of the Individuals 
                with Disabilities Education Act (20 U.S.C. 1411 et 
                seq.), a State educational agency shall take into 
                account the following criteria:
                          (i) The need of a local educational agency for 
                      additional funds for a student whose individually 
                      allocable cost for expenses related to the 
                      Individuals with Disabilities Education Act 
                      substantially exceeds the State's average per-
                      pupil expenditure (as defined in section 14101(2) 
                      of the Elementary and Secondary Education Act of 
                      1965 (20 U.S.C. 8801(2))).
                          (ii) The need of a local educational agency 
                      for additional funds for special education and 
                      related services under part B of the Individuals 
                      with Disabilities Education Act (20 U.S.C. 1411 et 
                      seq.).
                          (iii) The need of a local educational agency 
                      for additional funds for assistive technology 
                      devices (as defined in section 602 of the 
                      Individuals with Disabilities Education Act (20 
                      U.S.C. 1401)) or assistive technology services (as 
                      so defined) for children being served under part B 
                      of the Individuals with Disabilities Education Act 
                      (20 U.S.C. 1411 et seq.).
                          (iv) The need of a local educational agency 
                      for additional funds for activities under part B 
                      of the Individuals with Disabilities Education Act 
                      (20 U.S.C. 1411 et seq.) in order for children 
                      with disabilities to make progress toward meeting 
                      the performance goals and indicators established 
                      by the State under section 612(a)(16) of such Act 
                      (20 U.S.C. 1412).
                    (C) Criteria for awarding technology grants.--In 
                awarding competitive grants under subparagraph (A) to be 
                used for technology activities that are carried out in 
                connection with school repair and renovation, a State

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

                educational agency shall take into account the need of a 
                local educational agency for additional funds for such 
                activities, including the need for the activities 
                described in subclauses (I) through (IV) of subparagraph 
                (A)(ii).

    (c) Rules Applicable to School Repair and Renovation.--With respect 
to funds made available under this section that are used for school 
repair and renovation, the following rules shall apply:
            (1) Permissible uses of funds.--School repair and renovation 
        shall be limited to one or more of the following:
                    (A) Emergency repairs or renovations to public 
                school facilities only to ensure the health and safety 
                of students and staff, including--
                          (i) repairing, replacing, or installing roofs, 
                      electrical wiring, plumbing systems, or sewage 
                      systems;
                          (ii) repairing, replacing, or installing 
                      heating, ventilation, or air conditioning systems 
                      (including insulation); and
                          (iii) bringing public schools into compliance 
                      with fire and safety codes.
                    (B) School facilities modifications necessary to 
                render public school facilities accessible in order to 
                comply with the Americans with Disabilities Act of 1990 
                (42 U.S.C. 12101 et seq.).
                    (C) School facilities modifications necessary to 
                render public school facilities accessible in order to 
                comply with section 504 of the Rehabilitation Act of 
                1973 (29 U.S.C. 794).
                    (D) Asbestos abatement or removal from public school 
                facilities.
                    (E) Renovation, repair, and acquisition needs 
                related to the building infrastructure of a charter 
                school.
            (2) Impermissible uses of funds.--No funds received under 
        this section may be used for--
                    (A) payment of maintenance costs in connection with 
                any projects constructed in whole or in part with 
                Federal funds provided under this section;
                    (B) the construction of new facilities, except for 
                facilities for an impacted local educational agency (as 
                defined in subsection (a)(3)); or
                    (C) stadiums or other facilities primarily used for 
                athletic contests or exhibitions or other events for 
                which admission is charged to the general public.
            (3) Charter schools.--A public charter school that 
        constitutes a local educational agency under State law shall be 
        eligible for assistance under the same terms and conditions as 
        any other local educational agency (as defined in section 
        14101(18) of the Elementary and Secondary Education Act of 1965 
        (20 U.S.C. 8801(18))).
            (4) Supplement, not supplant.--Excluding the uses described 
        in subparagraphs (B) and (C) of paragraph (1), a local 
        educational agency shall use Federal funds subject to this 
        subsection only to supplement the amount of funds that would, in 
        the absence of such Federal funds, be made available from non-
        Federal sources for school repair and renovation.

    (d) Special Rule.--Each local educational agency that receives funds 
under this section shall ensure that, if it carries out repair

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

or renovation through a contract, any such contract process ensures the 
maximum number of qualified bidders, including small, minority, and 
women-owned businesses, through full and open competition.
    (e) Public Comment.--Each local educational agency receiving funds 
under paragraph (2) or (3) of subsection (b)--
            (1) shall provide parents, educators, and all other 
        interested members of the community the opportunity to consult 
        on the use of funds received under such paragraph;
            (2) shall provide the public with adequate and efficient 
        notice of the opportunity described in paragraph (1) in a widely 
        read and distributed medium; and
            (3) shall provide the opportunity described in paragraph (1) 
        in accordance with any applicable State and local law specifying 
        how the comments may be received and how the comments may be 
        reviewed by any member of the public.

    (f ) Reporting.--
            (1) Local reporting.--Each local educational agency 
        receiving funds under subsection (a)(1)(D) shall submit a report 
        to the State educational agency, at such time as the State 
        educational agency may require, describing the use of such funds 
        for--
                    (A) school repair and renovation (and construction, 
                in the case of an impacted local educational agency (as 
                defined in subsection (a)(3)));
                    (B) activities under part B of the Individuals with 
                Disabilities Education Act (20 U.S.C. 1411 et seq.); and
                    (C) technology activities that are carried out in 
                connection with school repair and renovation, including 
                the activities described in subclauses (I) through (IV) 
                of subsection (b)(3)(A)(ii).
            (2) State reporting.--Each State educational agency shall 
        submit to the Secretary of Education, not later than December 
        31, 2002, a report on the use of funds received under subsection 
        (a)(1)(D) by local educational agencies for--
                    (A) school repair and renovation (and construction, 
                in the case of an impacted local educational agency (as 
                defined in subsection (a)(3)));
                    (B) activities under part B of the Individuals with 
                Disabilities Education Act (20 U.S.C. 1411 et seq.); and
                    (C) technology activities that are carried out in 
                connection with school repair and renovation, including 
                the activities described in subclauses (I) through (IV) 
                of subsection (b)(3)(A)(ii).
            (3) Additional reports.--Each entity receiving funds 
        allocated under subsection (a)(1)(A) or (B) shall submit to the 
        Secretary, not later than December 31, 2002, a report on its 
        uses of funds under this section, in such form and containing 
        such information as the Secretary may require.

    (g) Applicability of Part B of IDEA.--If a local educational agency 
uses funds received under this section to carry out activities under 
part B of the Individuals with Disabilities Education Act (20 U.S.C. 
1411 et seq.), such part (including provisions respecting the 
participation of private school children), and any other provision of 
law that applies to such part, shall apply to such use.
    (h) Reallocation.--If a State educational agency does not apply for 
an allocation of funds under subsection (a)(1)(D) for fiscal

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

year 2001, or does not use its entire allocation for such fiscal year, 
the Secretary may reallocate the amount of the State educational 
agency's allocation (or the remainder thereof, as the case may be) to 
the remaining State educational agencies in accordance with subsection 
(a)(1)(D).
    (i) Participation of Private Schools.--
            (1) In general.--Section 6402 of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 7372) shall apply to 
        subsection (b)(2) in the same manner as it applies to activities 
        under title VI of such Act, except that--
                    (A) such section shall not apply with respect to the 
                title to any real property renovated or repaired with 
                assistance provided under this section;
                    (B) the term ``services'' as used in section 6402 of 
                such Act with respect to funds under this section shall 
                be provided only to private, nonprofit elementary or 
                secondary schools with a rate of child poverty of at 
                least 40 percent and may include for purposes of 
                subsection (b)(2) only--
                          (i) modifications of school facilities 
                      necessary to meet the standards applicable to 
                      public schools under the Americans with 
                      Disabilities Act of 1990 (42 U.S.C. 12101 et 
                      seq.);
                          (ii) modifications of school facilities 
                      necessary to meet the standards applicable to 
                      public schools under section 504 of the 
                      Rehabilitation Act of 1973 (29 U.S.C. 794); and
                          (iii) asbestos abatement or removal from 
                      school facilities; and
                    (C) notwithstanding the requirements of section 
                6402(b) of the Elementary and Secondary Education Act of 
                1965 (20 U.S.C. 7372(b)), expenditures for services 
                provided using funds made available under subsection 
                (b)(2) shall be considered equal for purposes of such 
                section if the per-pupil expenditures for services 
                described in subparagraph (B) for students enrolled in 
                private nonprofit elementary and secondary schools that 
                have child poverty rates of at least 40 percent are 
                consistent with the per-pupil expenditures under this 
                section for children enrolled in the public schools in 
                the school district of the local educational agency 
                receiving funds under this section.
            (2) Remaining funds.--If the expenditure for services 
        described in paragraph (1)(B) is less than the amount calculated 
        under paragraph (1)(C) because of insufficient need for such 
        services, the remainder shall be available to the local 
        educational agency for renovation and repair of public school 
        facilities.
            (3) Application.--If any provision of this section, or the 
        application thereof, to any person or circumstances is 
        judicially determined to be invalid, the provisions of the 
        remainder of the section and the application to other persons or 
        circumstances shall not be affected thereby.

    ( j) Definitions.--For purposes of this section:
            (1) Charter school.--The term ``charter school'' has the 
        meaning given such term in section 10310(1) of the Elementary 
        and Secondary Education Act of 1965 (20 U.S.C. 8066(1)).

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

            (2) Elementary school.--The term ``elementary school'' has 
        the meaning given such term in section 14101(14) of the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        8801(14)).
            (3) Local educational agency.--The term ``local educational 
        agency'' has the meaning given such term in subparagraphs (A) 
        and (B) of section 14101(18) of the Elementary and Secondary 
        Education Act of 1965 (20 U.S.C. 8801(18)).
            (4) Outlying area.--The term ``outlying area'' has the 
        meaning given such term in section 14101(21) of the Elementary 
        and Secondary Education Act of 1965 (20 U.S.C. 8801(21)).
            (5) Poor children and child poverty.--The terms ``poor 
        children'' and ``child poverty'' refer to children 5 to 17 years 
        of age, inclusive, who are from families with incomes below the 
        poverty line (as defined by the Office of Management and Budget 
        and revised annually in accordance with section 673(2) of the 
        Community Services Block Grant (42 U.S.C. 9902(2)) applicable to 
        a family of the size involved for the most recent fiscal year 
        for which data satisfactory to the Secretary are available.
            (6) Rural local educational agency.--The term ``rural local 
        educational agency'' means a local educational agency that the 
        State determines is located in a rural area using objective data 
        and a commonly employed definition of the term ``rural''.
            (7) Secondary school.--The term ``secondary school'' has the 
        meaning given such term in section 14101(25) of the Elementary 
        and Secondary Education Act of 1965 (20 U.S.C. 8801(25)).
            (8) State.--The term ``State'' means each of the 50 States, 
        the District of Columbia, and the Commonwealth of Puerto Rico.

    Sec. 322. (a) Part C of title X of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 8061 et seq.) is amended--
            (1) by inserting after the part heading the following:

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

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

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

``SEC. 10321. PURPOSE.

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

``SEC. 10322. GRANTS TO ELIGIBLE ENTITIES.

    ``(a) In General.--The Secretary shall use 100 percent of the amount 
available to carry out this subpart to award not less than

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

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

``SEC. 10323. APPLICATIONS.

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

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

``SEC. 10324. CHARTER SCHOOL OBJECTIVES.

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

``SEC. 10325. RESERVE ACCOUNT.

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

    ``(b) Investment.--Funds received under this subpart and deposited 
in the reserve account shall be invested in obligations issued or 
guaranteed by the United States or a State, or in other similarly low-
risk securities.
    ``(c) Reinvestment of Earnings.--Any earnings on funds received 
under this subpart shall be deposited in the reserve account established 
under subsection (a) and used in accordance with such subsection.

``SEC. 10326. LIMITATION ON ADMINISTRATIVE COSTS.

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

``SEC. 10327. AUDITS AND REPORTS.

    ``(a) Financial Record Maintenance and Audit.--The financial records 
of each eligible entity receiving a grant under this subpart shall be 
maintained in accordance with generally accepted

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

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

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

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

``SEC. 10329. RECOVERY OF FUNDS.

    ``(a) In General.--The Secretary, in accordance with chapter 37 of 
title 31, United States Code, shall collect--
            ``(1) all of the funds in a reserve account established by 
        an eligible entity under section 10325(a) if the Secretary 
        determines, not earlier than 2 years after the date on which the 
        entity first received funds under this subpart, that the entity 
        has failed to make substantial progress in carrying out the 
        purposes described in section 10325(a); or
            ``(2) all or a portion of the funds in a reserve account 
        established by an eligible entity under section 10325(a) if the 
        Secretary determines that the eligible entity has permanently 
        ceased to use all or a portion of the funds in such account to 
        accomplish any purpose described in section 10325(a).

    ``(b) Exercise of Authority.--The Secretary shall not exercise the 
authority provided in subsection (a) to collect from any eligible

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

entity any funds that are being properly used to achieve one or more of 
the purposes described in section 10325(a).
    ``(c) Procedures.--The provisions of sections 451, 452, and 458 of 
the General Education Provisions Act (20 U.S.C. 1234 et seq.) shall 
apply to the recovery of funds under subsection (a).
    ``(d) Construction.--This section shall not be construed to impair 
or affect the authority of the Secretary to recover funds under part D 
of the General Education Provisions Act (20 U.S.C. 1234 et seq.).

``SEC. 10330. DEFINITIONS.

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

``SEC. 10331. AUTHORIZATION OF APPROPRIATIONS.

    ``For the purpose of carrying out this subpart, there are authorized 
to be appropriated $100,000,000 for fiscal year 2001.''.
    (b) Part C of title X of the Elementary and Secondary Education Act 
of 1965 (20 U.S.C. 8061 et seq.) is amended in each of the following 
provisions by striking ``part'' each place such term appears and 
inserting ``subpart'':
            (1) Sections 10301 through 10305.
            (2) Section 10307.
            (3) Sections 10309 through 10311.

    Sec. 323. (a) Section 8003(b)(2)(F) of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 7703(b)(2)(F)) is amended--
            (1) by striking ``the Secretary shall use'' and inserting 
        ``the Secretary--
                          ``(i) shall use'';
            (2) by striking the period at the end and inserting ``; 
        and''; and
            (3) by adding at the end the following:
                          ``(ii) except as provided in subparagraph 
                      (C)(i)(I), shall include all of the children 
                      described in subparagraphs (F) and (G) of 
                      subsection (a)(1) enrolled in schools of the local 
                      educational agency in determining (I) the 
                      eligibility of the agency for assistance under 
                      this paragraph, and (II) the amount of such 
                      assistance if the number of such children meet the 
                      requirements of subsection (a)(3).''.

    (b) Section 8003(b)(2) of the Elementary and Secondary Education Act 
of 1965 (20 U.S.C. 7703(b)(2)) is amended by adding at the end the 
following:
                    ``(G) Determination of average tax rates for general 
                fund purposes.--For the purpose of determining average 
                tax rates for general fund purposes for local 
                educational agencies in a State under this paragraph 
                (except under subparagraph (C)(i)(II)(bb)), the 
                Secretary shall use either--

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

                          ``(i) the average tax rate for general fund 
                      purposes for comparable local educational 
                      agencies, as determined by the Secretary in 
                      regulations; or
                          ``(ii) the average tax rate of all the local 
                      educational agencies in the State.''.

    This title may be cited as the ``Department of Education 
Appropriations Act, 2001''.

                       TITLE IV--RELATED AGENCIES

                      Armed Forces Retirement Home

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

             Corporation for National and Community Service

         domestic volunteer service programs, operating expenses

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

                   Corporation for Public Broadcasting

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

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

               Federal Mediation and Conciliation Service

                          salaries and expenses

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

            Federal Mine Safety and Health Review Commission

                          salaries and expenses

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

                Institute of Museum and Library Services

          office of library services: grants and administration

    For carrying out subtitle B of the Museum and Library Services Act, 
$207,219,000: Provided, That of the amount provided, $1,000,000 shall be 
awarded to the National Museum of Women in the Arts in Washington, D.C., 
$700,000 shall be awarded to the University of Idaho Institute for the 
Historic Study of Jazz, $2,600,000 shall be awarded to Southeast 
Missouri State University River Campus and Museum, $900,000 shall be 
awarded to the Heritage Harbor Museum in Rhode Island, $500,000 shall be 
awarded to the Alaska Native Heritage Center, $576,000 shall be awarded 
to the Franklin Institute in Philadelphia, $925,000 shall be awarded to 
the Please Touch Museum, $250,000 shall be awarded to the Pittsburgh 
Children's Museum, $510,000 shall be awarded to the Temple University 
Library, $1,800,000 shall be awarded to Franklin Pierce College in New 
Hampshire, $500,000 shall be awarded to the Louisville Zoo in Kentucky, 
$150,000 shall be awarded to the Oregon Historical Society, $1,200,000 
shall be awarded to the Mississippi River Museum and Discovery Center in 
Dubuque, Iowa, $650,000 shall be awarded to the Salisbury House 
Foundation in Des Moines, Iowa, $150,000 shall be awarded to the History 
Center for the Linn County Historical Museum in Iowa, $4,000,000 shall 
be awarded to the Newsline for the

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

Blind, of which $100,000 shall be awarded to the Iowa Newsline for the 
Blind and $100,000 shall be awarded to the West Virginia Newsline for 
the Blind, $1,000,000 shall be awarded to the Clay Center for the Arts 
and Sciences, $650,000 shall be awarded to Bishops Museum in Hawaii, 
$500,000 shall be awarded to the Wisconsin Maritime Museum, $250,000 
shall be awarded to the Natural History Museum of Los Angeles, $400,000 
shall be awarded to the Perkins Geology Museum at the University of 
Vermont, $400,000 shall be awarded to the Walt Whitman Cultural Arts 
Center in Camden, New Jersey, $400,000 shall be awarded to the 
Plainfield Public Library in Plainfield, New Jersey, $150,000 shall be 
awarded to the Ducktown Arts District in Atlantic City, New Jersey, 
$400,000 shall be awarded to the Lake Champlain Science Center in 
Vermont, $250,000 shall be awarded to the Foundation for the Arts, 
Music, and Entertainment of Shreveport-Bossier, Inc., $100,000 shall be 
awarded to Bryant College in Rhode Island, $120,000 shall be awarded to 
the Fenton Historical Museum of Jamestown, New York, $921,000 shall be 
awarded to the Mariners' Museum in Newport News, Virginia, $461,000 
shall be awarded to DuPage County Children's Museum in Naperville, 
Illinois, $369,000 shall be awarded to the National Baseball Hall of 
Fame Library in Cooperstown, New York, $92,000 shall be awarded to the 
City of Corona, Riverside, California, $6,000 shall be awarded to the 
City of Murrieta, California Public Library, $1,382,000 shall be awarded 
to the Sierra Madre, California Public Library, $23,000 shall be awarded 
to the Brooklyn Public Library in Brooklyn, New York, $46,000 shall be 
awarded to the New York Public Library Staten Island branch, $266,000 
shall be awarded to the Edward H. Nabb Research Center at Salisbury 
State University in Salisbury, Maryland, $461,000 shall be awarded to 
Texas Tech University, $230,000 shall be awarded to the City of Ontario, 
California Public Library, $461,000 shall be awarded to the Southern 
Oregon University in Ashland, Oregon, $1,106,000 shall be awarded to 
Christopher Newport University in Newport News, Virginia, $128,000 shall 
be awarded to the Nassau County Museum of Art in Roslyn Harbor, New 
York, $850,000 shall be awarded to the Children's Museum of Los Angeles, 
$43,000 shall be awarded to Sumter County Library in Sumter, South 
Carolina, $298,000 shall be awarded to Columbia College Center for Black 
Music Research in Chicago, Illinois, $723,000 shall be awarded to Old 
Sturbridge Village in Sturbridge, Massachusetts, $723,000 shall be 
awarded to New Bedford Whaling Museum in Massachusetts, $298,000 shall 
be awarded to Mystic Seaport Museum of America and the Sea in 
Connecticut, $468,000 shall be awarded to the City of Houston Public 
Library, $128,000 shall be awarded to the Roberson Museum and Science 
Center in Binghampton, New York, $850,000 shall be awarded to Berman 
Museum of Art at Ursinus College in Collegeville, Pennsylvania, $680,000 
shall be awarded to AMISTAD Research Center at Tulane University, 
$2,125,000 shall be awarded to Silas Bronson Library in Waterbury, 
Connecticut, $213,000 shall be awarded to Fitchburg Art Museum in 
Fitchburg, Massachusetts, $128,000 shall be awarded to North Carolina 
Museum of Life and Science, $2,435,000 shall be awarded to New York 
Public Library, $85,000 shall be awarded to the New York Botanical 
Garden in Bronx, New York, $170,000 shall be awarded to George Eastman 
House in Rochester, New York, $425,000 shall be awarded to The National 
Aviary in Pittsburgh,

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

Pennsylvania, $723,000 shall be awarded to the George C. Page Museum in 
Los Angeles, California, $461,000 shall be awarded to the Abraham 
Lincoln Bicentennial Commission, and $410,000 shall be awarded to the AE 
Seaman Mineral Museum in Houghton, Michigan.

                  Medicare Payment Advisory Commission

                          salaries and expenses

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

        National Commission on Libraries and Information Science

                          salaries and expenses

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

                     National Council on Disability

                          salaries and expenses

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

                     National Education Goals Panel

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

                     National Labor Relations Board

                          salaries and expenses

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

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

                        National Mediation Board

                          salaries and expenses

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

            Occupational Safety and Health Review Commission

                          salaries and expenses

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

                        Railroad Retirement Board

                     dual benefits payments account

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

          federal payments to the railroad retirement accounts

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

                      limitation on administration

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

              limitation on the office of inspector general

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

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

award for any personnel of the Office; used to pay any other operating 
expense of the Office; or used to reimburse the Office for any service 
provided, or expense incurred, by the Office.

                     Social Security Administration

                 payments to social security trust funds

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

                special benefits for disabled coal miners

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

                  supplemental security income program

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

                  limitation on administrative expenses

    For necessary expenses, including the hire of two passenger motor 
vehicles, and not to exceed $10,000 for official reception and 
representation expenses, not more than $6,583,000,000 may be expended, 
as authorized by section 201(g)(1) of the Social Security Act, from any 
one or all of the trust funds referred to therein: Provided, That not 
less than $1,800,000 shall be for the Social

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

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

                       office of inspector general

                      (including transfer of funds)

    For expenses necessary for the Office of Inspector General in 
carrying out the provisions of the Inspector General Act of

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

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

                    United States Institute of Peace

                           operating expenses

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

                       TITLE V--GENERAL PROVISIONS

    Sec. 501. The Secretaries of Labor, Health and Human Services, and 
Education are authorized to transfer unexpended balances of prior 
appropriations to accounts corresponding to current appropriations 
provided in this Act: Provided, That such transferred balances are used 
for the same purpose, and for the same periods of time, for which they 
were originally appropriated.
    Sec. 502. No part of any appropriation contained in this Act shall 
remain available for obligation beyond the current fiscal year unless 
expressly so provided herein.
    Sec. 503. (a) No part of any appropriation contained in this Act 
shall be used, other than for normal and recognized executive-
legislative relationships, for publicity or propaganda purposes, for the 
preparation, distribution, or use of any kit, pamphlet, booklet, 
publication, radio, television, or video presentation designed to 
support or defeat legislation pending before the Congress or any State 
legislature, except in presentation to the Congress or any State 
legislature itself.
    (b) No part of any appropriation contained in this Act shall be used 
to pay the salary or expenses of any grant or contract recipient, or 
agent acting for such recipient, related to any activity designed to 
influence legislation or appropriations pending before the Congress or 
any State legislature.
    Sec. 504. The Secretaries of Labor and Education are authorized to 
make available not to exceed $20,000 and $15,000, respectively, from 
funds available for salaries and expenses under titles I and III, 
respectively, for official reception and representation expenses; the 
Director of the Federal Mediation and Conciliation Service is authorized 
to make available for official reception and representation expenses not 
to exceed $2,500 from the funds available for ``Salaries and expenses, 
Federal Mediation and Conciliation Service''; and the Chairman of the 
National Mediation Board is authorized to make available for official 
reception and representation expenses not to exceed $2,500 from funds 
available for ``Salaries and expenses, National Mediation Board''.

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

    Sec. 505. Notwithstanding any other provision of this Act, no funds 
appropriated under this Act shall be used to carry out any program of 
distributing sterile needles or syringes for the hypodermic injection of 
any illegal drug.
    Sec. 506. (a) It is the sense of the Congress that, to the greatest 
extent practicable, all equipment and products purchased with funds made 
available in this Act should be American-made.
    (b) In providing financial assistance to, or entering into any 
contract with, any entity using funds made available in this Act, the 
head of each Federal agency, to the greatest extent practicable, shall 
provide to such entity a notice describing the statement made in 
subsection (a) by the Congress.
    (c) If it has been finally determined by a court or Federal agency 
that any person intentionally affixed a label bearing a ``Made in 
America'' inscription, or any inscription with the same meaning, to any 
product sold in or shipped to the United States that is not made in the 
United States, the person shall be ineligible to receive any contract or 
subcontract made with funds made available in this Act, pursuant to the 
debarment, suspension, and ineligibility procedures described in 
sections 9.400 through 9.409 of title 48, Code of Federal Regulations.
    Sec. 507. When issuing statements, press releases, requests for 
proposals, bid solicitations and other documents describing projects or 
programs funded in whole or in part with Federal money, all grantees 
receiving Federal funds included in this Act, including but not limited 
to State and local governments and recipients of Federal research 
grants, shall clearly state: (1) the percentage of the total costs of 
the program or project which will be financed with Federal money; (2) 
the dollar amount of Federal funds for the project or program; and (3) 
percentage and dollar amount of the total costs of the project or 
program that will be financed by non-governmental sources.
    Sec. 508. (a) None of the funds appropriated under this Act, and 
none of the funds in any trust fund to which funds are appropriated 
under this Act, shall be expended for any abortion.
    (b) None of the funds appropriated under this Act, and none of the 
funds in any trust fund to which funds are appropriated under this Act, 
shall be expended for health benefits coverage that includes coverage of 
abortion.
    (c) The term ``health benefits coverage'' means the package of 
services covered by a managed care provider or organization pursuant to 
a contract or other arrangement.
    Sec. 509. (a) The limitations established in the preceding section 
shall not apply to an abortion--
            (1) if the pregnancy is the result of an act of rape or 
        incest; or
            (2) in the case where a woman suffers from a physical 
        disorder, physical injury, or physical illness, including a 
        life-endangering physical condition caused by or arising from 
        the pregnancy itself, that would, as certified by a physician, 
        place the woman in danger of death unless an abortion is 
        performed.

    (b) Nothing in the preceding section shall be construed as 
prohibiting the expenditure by a State, locality, entity, or private 
person of State, local, or private funds (other than a State's or 
locality's contribution of Medicaid matching funds).
    (c) Nothing in the preceding section shall be construed as 
restricting the ability of any managed care provider from offering

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

abortion coverage or the ability of a State or locality to contract 
separately with such a provider for such coverage with State funds 
(other than a State's or locality's contribution of Medicaid matching 
funds).
    Sec. 510. (a) None of the funds made available in this Act may be 
used for--
            (1) the creation of a human embryo or embryos for research 
        purposes; or
            (2) research in which a human embryo or embryos are 
        destroyed, discarded, or knowingly subjected to risk of injury 
        or death greater than that allowed for research on fetuses in 
        utero under 45 CFR 46.208(a)(2) and section 498(b) of the Public 
        Health Service Act (42 U.S.C. 289g(b)).

    (b) For purposes of this section, the term ``human embryo or 
embryos'' includes any organism, not protected as a human subject under 
45 CFR 46 as of the date of the enactment of this Act, that is derived 
by fertilization, parthenogenesis, cloning, or any other means from one 
or more human gametes or human diploid cells.
    Sec. 511. (a) None of the funds made available in this Act may be 
used for any activity that promotes the legalization of any drug or 
other substance included in schedule I of the schedules of controlled 
substances established by section 202 of the Controlled Substances Act 
(21 U.S.C. 812).
    (b) The limitation in subsection (a) shall not apply when there is 
significant medical evidence of a therapeutic advantage to the use of 
such drug or other substance or that federally sponsored clinical trials 
are being conducted to determine therapeutic advantage.
    Sec. 512. None of the funds made available in this Act may be 
obligated or expended to enter into or renew a contract with an entity 
if--
            (1) such entity is otherwise a contractor with the United 
        States and is subject to the requirement in section 4212(d) of 
        title 38, United States Code, regarding submission of an annual 
        report to the Secretary of Labor concerning employment of 
        certain veterans; and
            (2) such entity has not submitted a report as required by 
        that section for the most recent year for which such requirement 
        was applicable to such entity.

    Sec. 513. (a) Section 403(a)(5)(H)(iii) of the Social Security Act 
(42 U.S.C. 603(a)(5)(H)(iii)) is amended by striking ``2001'' and 
inserting ``2005''.
    (b) Section 403(a)(5)(H) of such Act (42 U.S.C. 603(a)(5)(G)) is 
amended by adding at the end the following:
                          ``(iv) Interim report.--Not later than January 
                      1, 2002, the Secretary shall submit to the 
                      Congress an interim report on the evaluations 
                      referred to in clause (i).''.

    Sec. 514. None of the funds made available in this Act may be used 
to promulgate or adopt any final standard under section 1173(b) of the 
Social Security Act (42 U.S.C. 1320d-2(b)) providing for, or providing 
for the assignment of, a unique health identifier for an individual 
(except in an individual's capacity as an employer or a health care 
provider), until legislation is enacted specifically approving the 
standard.

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

    Sec. 515. Section 410(b) of The Ticket to Work and Work Incentives 
Improvement Act of 1999 (Public Law 106-170) is amended by striking 
``2009'' both places it appears and inserting ``2001''.
    Sec. 516. (a) Human Papillomavirus.--Part B of title III of the 
Public Health Services Act (42 U.S.C. 243 et seq.) is amended by 
inserting before section 318 the following section:

                         ``human papillomavirus

    ``Sec. 317P. (a) Surveillance.--
            ``(1) In general.--The Secretary, acting through the Centers 
        for Disease Control and Prevention, shall--
                    ``(A) enter into cooperative agreements with States 
                and other entities to conduct sentinel surveillance or 
                other special studies that would determine the 
                prevalence in various age groups and populations of 
                specific types of human papillomavirus (referred to in 
                this section as `HPV') in different sites in various 
                regions of the United States, through collection of 
                special specimens for HPV using a variety of laboratory-
                based testing and diagnostic tools; and
                    ``(B) develop and analyze data from the HPV sentinel 
                surveillance system described in subparagraph (A).
            ``(2) Report.--The Secretary shall make a progress report to 
        the Congress with respect to paragraph (1) no later than 1 year 
        after the effective date of this section.

    ``(b) Prevention Activities; Education Program.--
            ``(1) In general.--The Secretary, acting through the Centers 
        for Disease Control and Prevention, shall conduct prevention 
        research on HPV, including--
                    ``(A) behavioral and other research on the impact of 
                HPV-related diagnosis on individuals;
                    ``(B) formative research to assist with the 
                development of educational messages and information for 
                the public, for patients, and for their partners about 
                HPV;
                    ``(C) surveys of physician and public knowledge, 
                attitudes, and practices about genital HPV infection; 
                and
                    ``(D) upon the completion of and based on the 
                findings under subparagraphs (A) through (C), develop 
                and disseminate educational materials for the public and 
                health care providers regarding HPV and its impact and 
                prevention.
            ``(2) Report; final proposal.--The Secretary shall make a 
        progress report to the Congress with respect to paragraph (1) 
        not later than 1 year after the effective date of this section, 
        and shall develop a final report not later than 3 years after 
        such effective date, including a detailed summary of the 
        significant findings and problems and the best strategies to 
        prevent future infections, based on available science.

    ``(c) HPV Education and Prevention.--
            ``(1) In general.--The Secretary shall prepare and 
        distribute educational materials for health care providers and 
        the public that include information on HPV. Such materials shall 
        address--
                    ``(A) modes of transmission;
                    ``(B) consequences of infection, including the link 
                between HPV and cervical cancer;

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

                    ``(C) the available scientific evidence on the 
                effectiveness or lack of effectiveness of condoms in 
                preventing infection with HPV; and
                    ``(D) the importance of regular Pap smears, and 
                other diagnostics for early intervention and prevention 
                of cervical cancer purposes in preventing cervical 
                cancer.
            ``(2) Medically accurate information.--Educational material 
        under paragraph (1), and all other relevant educational and 
        prevention materials prepared and printed from this date forward 
        for the public and health care providers by the Secretary 
        (including materials prepared through the Food and Drug 
        Administration, the Centers for Disease Control and Prevention, 
        and the Health Resources and Services Administration), or by 
        contractors, grantees, or subgrantees thereof, that are 
        specifically designed to address STDs including HPV shall 
        contain medically accurate information regarding the 
        effectiveness or lack of effectiveness of condoms in preventing 
        the STD the materials are designed to address. Such requirement 
        only applies to materials mass produced for the public and 
        health care providers, and not to routine communications.''.

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

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

    ``(a) In General.--The Commissioner of Social Security may enter 
into an agreement with any State (or political subdivision thereof ) 
that provides cash payments on a regular basis to individuals entitled 
to benefits under this title under which the Commissioner of Social 
Security shall make such payments on behalf of such State (or 
subdivision).
    ``(b) Agreement Terms.--
            ``(1) In general.--Such agreement shall include such terms 
        as the Commissioner of Social Security finds necessary to 
        achieve efficient and effective administration of both this 
        title and the State program.
            ``(2) Financial terms.--Such agreement shall provide for the 
        State to pay the Commissioner of Social Security, at such times 
        and in such installments as the parties may specify--
                    ``(A) an amount equal to the expenditures made by 
                the Commissioner of Social Security pursuant to such 
                agreement as payments to individuals on behalf of such 
                State; and

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

                    ``(B) an administration fee to reimburse the 
                administrative expenses incurred by the Commissioner of 
                Social Security in making payments to individuals on 
                behalf of the State.

    ``(c) Special Disposition of Administration Fees.--Administration 
fees, upon collection, shall be credited to a special fund established 
in the Treasury of the United States for State recognition payments for 
certain World War II veterans. The amounts so credited, to the extent 
and in the amounts provided in advance in appropriations Acts, shall be 
available to defray expenses incurred in carrying out this title.''.
    (b) Conforming Amendments.--
            (1) The table of contents of title VIII of the Social 
        Security Act is amended by inserting after

``Sec. 810. Other administrative provisions.''

        the following:

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

            (2) Section 1129A(e) of the Social Security Act (42 U.S.C. 
        1320a-8a(e)) is amended--
                    (A) by inserting ``VIII or'' after ``benefits 
                under'';
                    (B) by inserting ``810A or'' after ``agreement under 
                section'';
                    (C) by inserting ``1010A or'' before ``1382(e)(a)''; 
                and
                    (D) by inserting ``, as the case may be'' 
                immediately before the period.

    Sec. 519. Section 1612(a)(1) of the Social Security Act (42 U.S.C. 
1382(a) is amended--
            (1) in subparagraph (A), by inserting ``but without the 
        application of section 210( j)(3)'' immediately before the 
        semicolon; and
            (2) in subparagraph (B), by--
                    (A) striking ``and the last'' and inserting ``the 
                last''; and
                    (B) inserting ``, and section 210( j)(3)'' after 
                ``subsection (a)''.

    Sec. 520. Amounts made available under this Act for the 
administrative and related expenses for departmental management for the 
Department of Labor, the Department of Health and Human Services, and 
the Department of Education shall be reduced on a pro rata basis by 
$25,000,000: Provided, That this provision shall not apply to the Food 
and Drug Administration and the Indian Health Service.

                    TITLE VI--ASSETS FOR INDEPENDENCE

SEC. 601. SHORT TITLE.

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

SEC. 602. MATCHING CONTRIBUTIONS UNAVAILABLE FOR EMERGENCY WITHDRAWALS.

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

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

 SEC. 603. ADDITIONAL QUALIFIED ENTITIES.

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

 SEC. 604. HOME PURCHASE COSTS.

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

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

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

SEC. 606. ALTERNATIVE ELIGIBILITY CRITERIA.

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

SEC. 607. REVISED ANNUAL PROGRESS REPORT DEADLINE.

    (a) In General.--Section 412(c) of the Assets for Independence Act 
(42 U.S.C. 604 note) is amended by striking ``calendar'' and inserting 
``project''.

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

    (b) Transitional Deadline.--Notwithstanding the amendment made by 
subsection (a), the submission of the initial report of a qualified 
entity under section 412(c) shall not be required prior to the date that 
is 90 days after the date of enactment of this title.

SEC. 608. REVISED INTERIM EVALUATION REPORT DEADLINE.

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

SEC. 609. INCREASED APPROPRIATIONS FOR EVALUATION EXPENSES.

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

SEC. 610. NO REDUCTION IN BENEFITS.

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

``SEC. 415. NO REDUCTION IN BENEFITS.

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

             TITLE VII--PHYSICAL EDUCATION FOR PROGRESS ACT

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

                ``PART L--PHYSICAL EDUCATION FOR PROGRESS

``SEC. 10999A. SHORT TITLE.

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

``SEC. 10999B. PURPOSE.

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

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

``SEC. 10999C. FINDINGS.

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

``SEC. 10999D. PROGRAM AUTHORIZED.

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

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

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

    ``(a) Applications.--Each local educational agency desiring a grant 
or contract under this part shall submit to the Secretary an application 
that contains a plan to initiate, expand, or improve physical education 
programs in the schools served by the agency in order to make progress 
toward meeting State standards for physical education.
    ``(b) Program Elements.--A physical education program described in 
any application submitted under subsection (a) may provide--
            ``(1) fitness education and assessment to help children 
        understand, improve, or maintain their physical well-being;
            ``(2) instruction in a variety of motor skills and physical 
        activities designed to enhance the physical, mental, and social 
        or emotional development of every child;
            ``(3) development of cognitive concepts about motor skill 
        and physical fitness that support a lifelong healthy lifestyle;
            ``(4) opportunities to develop positive social and 
        cooperative skills through physical activity participation;
            ``(5) instruction in healthy eating habits and good 
        nutrition; and
            ``(6) teachers of physical education the opportunity for 
        professional development to stay abreast of the latest research, 
        issues, and trends in the field of physical education.

    ``(c) Special Rule.--For the purpose of this part, extracurricular 
activities such as team sports and Reserve Officers' Training Corps 
(ROTC) program activities shall not be considered as part of the 
curriculum of a physical education program assisted under this part.

``SEC. 10999F. PROPORTIONALITY.

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

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

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

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

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

``SEC. 10999I. REPORT TO CONGRESS.

    ``The Secretary shall submit a report to Congress not later than 
June 1, 2003, that describes the programs assisted under

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

this part, documents the success of such programs in improving physical 
fitness, and makes such recommendations as the Secretary determines 
appropriate for the continuation and improvement of the programs 
assisted under this part.

``SEC. 10999J. ADMINISTRATIVE COSTS.

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

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

    ``(a) Federal Share.--The Federal share under this part may not 
exceed--
            ``(1) 90 percent of the total cost of a project for the 
        first year for which the project receives assistance under this 
        part; and
            ``(2) 75 percent of such cost for the second and each 
        subsequent such year.

    ``(b) Supplement Not Supplant.--Funds made available under this part 
shall be used to supplement and not supplant other Federal, State and 
local funds available for physical education activities.

``SEC. 10999L. AUTHORIZATION OF APPROPRIATIONS.

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

                TITLE VIII--EARLY LEARNING OPPORTUNITIES

SEC. 801. SHORT TITLE; FINDINGS.

    (a) Short Title.--This title may be cited as the ``Early Learning 
Opportunities Act''.
    (b) Findings.--Congress finds that--
            (1) medical research demonstrates that adequate stimulation 
        of a young child's brain between birth and age 5 is critical to 
        the physical development of the young child's brain;
            (2) parents are the most significant and effective teachers 
        of their children, and they alone are responsible for choosing 
        the best early learning opportunities for their child;
            (3) parent education and parent involvement are critical to 
        the success of any early learning program or activity;
            (4) the more intensively parents are involved in their 
        child's early learning, the greater the cognitive and 
        noncognitive benefits to their children;
            (5) many parents have difficulty finding the information and 
        support the parents seek to help their children grow to their 
        full potential;
            (6) each day approximately 13,000,000 young children, 
        including 6,000,000 infants or toddlers, spend some or all of 
        their day being cared for by someone other than their parents;
            (7) quality early learning programs, including those 
        designed to promote effective parenting, can increase the 
        literacy rate, the secondary school graduation rate, the 
        employment rate, and the college enrollment rate for children 
        who have participated in voluntary early learning programs and 
        activities;

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

            (8) early childhood interventions can yield substantial 
        advantages to participants in terms of emotional and cognitive 
        development, education, economic well-being, and health, with 
        the latter two advantages applying to the children's families as 
        well;
            (9) participation in quality early learning programs, 
        including those designed to promote effective parenting, can 
        decrease the future incidence of teenage pregnancy, welfare 
        dependency, at-risk behaviors, and juvenile delinquency for 
        children;
            (10) several cost-benefit analysis studies indicate that for 
        each $1 invested in quality early learning programs, the Federal 
        Government can save over $5 by reducing the number of children 
        and families who participate in Federal Government programs like 
        special education and welfare;
            (11) for children placed in the care of others during the 
        workday, the low salaries paid to the child care staff, the lack 
        of career progression for the staff, and the lack of child 
        development specialists involved in early learning and child 
        care programs, make it difficult to attract and retain the 
        quality of staff necessary for a positive early learning 
        experience;
            (12) Federal Government support for early learning has 
        primarily focused on out-of-home care programs like those 
        established under the Head Start Act, the Child Care and 
        Development Block Grant of 1990, and part C of the Individuals 
        with Disabilities Education Act, and these programs--
                    (A) serve far fewer than half of all eligible 
                children;
                    (B) are not primarily designed to provide support 
                for parents who care for their young children in the 
                home; and
                    (C) lack a means of coordinating early learning 
                opportunities in each community; and
            (13) by helping communities increase, expand, and better 
        coordinate early learning opportunities for children and their 
        families, the productivity and creativity of future generations 
        will be improved, and the Nation will be prepared for continued 
        leadership in the 21st century.

SEC. 802. PURPOSES.

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

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

SEC. 803. DEFINITIONS.

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

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

                    (C) is received in a postsecondary education program 
                focused on early learning or early childhood development 
                in which the individual is enrolled; or
                    (D) is provided, certified, or sponsored by an 
                organization that is recognized for its expertise in 
                promoting early learning or early childhood development.
            (14) Young child.--The term ``young child'' means any child 
        from birth to the age of mandatory school attendance in the 
        State where the child resides.

SEC. 804. PROHIBITIONS.

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

SEC. 805. AUTHORIZATION AND APPROPRIATION OF FUNDS.

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

SEC. 806. COORDINATION OF FEDERAL PROGRAMS.

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

SEC. 807. PROGRAM AUTHORIZED.

    (a) Grants.--From amounts appropriated under section 805 the 
Secretary shall award grants to States to enable the States to award 
grants to Local Councils to pay the Federal share of

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

the cost of carrying out early learning programs in the locality served 
by the Local Council.
    (b) Federal Share.--
            (1) In general.--The Federal share of the cost described in 
        subsections (a) and (e) shall be 85 percent for the first and 
        second years of the grant, 80 percent for the third and fourth 
        years of the grant, and 75 percent for the fifth and subsequent 
        years of the grant.
            (2) Non-federal share.--The non-Federal share of the cost 
        described in subsections (a) and (e) may be contributed in cash 
        or in kind, fairly evaluated, including facilities, equipment, 
        or services, which may be provided from State or local public 
        sources, or through donations from private entities. For the 
        purposes of this paragraph the term ``facilities'' includes the 
        use of facilities, but the term ``equipment'' means donated 
        equipment and not the use of equipment.

    (c) Maintenance of Effort.--The Secretary shall not award a grant 
under this title to any State unless the Secretary first determines that 
the total expenditures by the State and its political subdivisions to 
support early learning programs (other than funds used to pay the non-
Federal share under subsection (b)(2)) for the fiscal year for which the 
determination is made is equal to or greater than such expenditures for 
the preceding fiscal year.
    (d) Supplement Not Supplant.--Amounts received under this title 
shall be used to supplement and not supplant other Federal, State, and 
local public funds expended to promote early learning.
    (e) Special Rule.--If funds appropriated to carry out this title are 
less than $150,000,000 for any fiscal year, the Secretary shall award 
grants for the fiscal year directly to Local Councils, on a competitive 
basis, to pay the Federal share of the cost of carrying out early 
learning programs in the locality served by the Local Council. In 
carrying out the preceding sentence--
            (1) subsection (c), subsections (b) and (c) of section 810, 
        and paragraphs (1), (2), and (3) of section 811(a) shall not 
        apply;
            (2) State responsibilities described in section 811(d) shall 
        be carried out by the Local Council with regard to the locality;
            (3) the Secretary shall provide such technical assistance 
        and monitoring as necessary to ensure that the use of the funds 
        by Local Councils and the distribution of the funds to Local 
        Councils are consistent with this title; and
            (4) subject to paragraph (1), the Secretary shall assume the 
        responsibilities of the Lead State Agency under this title, as 
        appropriate.

SEC. 808. USES OF FUNDS.

    (a) In General.--Subject to section 810, grant funds under this 
title shall be used to pay for developing, operating, or enhancing 
voluntary early learning programs that are likely to produce sustained 
gains in early learning.
    (b) Limited Uses.--Subject to section 810, Lead State Agencies and 
Local Councils shall ensure that funds made available under this title 
to the agencies and Local Councils are used for three or more of the 
following activities:
            (1) Helping parents, caregivers, child care providers, and 
        educators increase their capacity to facilitate the development 
        of cognitive, language comprehension, expressive language,

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

        social-emotional, and motor skills, and promote learning 
        readiness.
            (2) Promoting effective parenting.
            (3) Enhancing early childhood literacy.
            (4) Developing linkages among early learning programs within 
        a community and between early learning programs and health care 
        services for young children.
            (5) Increasing access to early learning opportunities for 
        young children with special needs, including developmental 
        delays, by facilitating coordination with other programs serving 
        such young children.
            (6) Increasing access to existing early learning programs by 
        expanding the days or times that the young children are served, 
        by expanding the number of young children served, or by 
        improving the affordability of the programs for low-income 
        families.
            (7) Improving the quality of early learning programs through 
        professional development and training activities, increased 
        compensation, and recruitment and retention incentives, for 
        early learning providers.
            (8) Removing ancillary barriers to early learning, including 
        transportation difficulties and absence of programs during 
        nontraditional work times.

    (c) Requirements.--Each Lead State Agency designated under section 
810(c) and Local Councils receiving a grant under this title shall 
ensure--
            (1) that Local Councils described in section 814 work with 
        local educational agencies to identify cognitive, social, 
        emotional, and motor developmental abilities which are necessary 
        to support children's readiness for school;
            (2) that the programs, services, and activities assisted 
        under this title will represent developmentally appropriate 
        steps toward the acquisition of those abilities; and
            (3) that the programs, services, and activities assisted 
        under this title collectively provide benefits for children 
        cared for in their own homes as well as children placed in the 
        care of others.

    (d) Sliding Scale Payments.--States and Local Councils receiving 
assistance under this title shall ensure that programs, services, and 
activities assisted under this title which customarily require a payment 
for such programs, services, or activities, adjust the cost of such 
programs, services, and activities provided to the individual or the 
individual's child based on the individual's ability to pay.

SEC. 809. RESERVATIONS AND ALLOTMENTS.

    (a) Reservation for Indian Tribes, Alaska Natives, and Native 
Hawaiians.--The Secretary shall reserve 1 percent of the total amount 
appropriated under section 805 for each fiscal year, to be allotted to 
Indian tribes, Regional Corporations, and Native Hawaiian entities, of 
which--
            (1) 0.5 percent shall be available to Indian tribes; and
            (2) 0.5 percent shall be available to Regional Corporations 
        and Native Hawaiian entities.

    (b) Allotments.--From the funds appropriated under this title for 
each fiscal year that are not reserved under subsection (a), the 
Secretary shall allot to each State the sum of--

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

            (1) an amount that bears the same ratio to 50 percent of 
        such funds as the number of children 4 years of age and younger 
        in the State bears to the number of such children in all States; 
        and
            (2) an amount that bears the same ratio to 50 percent of 
        such funds as the number of children 4 years of age and younger 
        living in families with incomes below the poverty line in the 
        State bears to the number of such children in all States.

    (c) Minimum Allotment.--No State shall receive an allotment under 
subsection (b) for a fiscal year in an amount that is less than .40 
percent of the total amount appropriated for the fiscal year under this 
title.
    (d) Availability of Funds.--Any portion of the allotment to a State 
that is not expended for activities under this title in the fiscal year 
for which the allotment is made shall remain available to the State for 
two additional years, after which any unexpended funds shall be returned 
to the Secretary. The Secretary shall use the returned funds to carry 
out a discretionary grant program for research-based early learning 
demonstration projects.
    (e) Data.--The Secretary shall make allotments under this title on 
the basis of the most recent data available to the Secretary.

SEC. 810. GRANT ADMINISTRATION.

    (a) Federal Administrative Costs.--The Secretary may use not more 
than 3 percent of the amount appropriated under section 805 for a fiscal 
year to pay for the administrative costs of carrying out this title, 
including the monitoring and evaluation of State and local efforts.
    (b) State Administrative Costs.--A State that receives a grant under 
this title may use--
            (1) not more than 2 percent of the funds made available 
        through the grant to carry out activities designed to coordinate 
        early learning programs on the State level, including programs 
        funded or operated by the State educational agency, health, 
        children and family, and human service agencies, and any State-
        level collaboration or coordination council involving early 
        learning and education, such as the entities funded under 
        section 640(a)(5) of the Head Start Act (42 U.S.C. 9835(a)(5));
            (2) not more than 2 percent of the funds made available 
        through the grant for the administrative costs of carrying out 
        the grant program and the costs of reporting State and local 
        efforts to the Secretary; and
            (3) not more than 3 percent of the funds made available 
        through the grant for training, technical assistance, and wage 
        incentives provided by the State to Local Councils.

    (c) Lead State Agency.--
            (1) In general.--To be eligible to receive an allotment 
        under this title, the Governor of a State shall appoint, after 
        consultation with the leadership of the State legislature, a 
        Lead State Agency to carry out the functions described in 
        paragraph (2).
            (2) Lead state agency.--
                    (A) Allocation of funds.--The Lead State Agency 
                described in paragraph (1) shall allocate funds to Local 
                Councils as described in section 812.

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

                    (B) Functions of agency.--In addition to allocating 
                funds pursuant to subparagraph (A), the Lead State 
                Agency shall--
                          (i) advise and assist Local Councils in the 
                      performance of their duties under this title;
                          (ii) develop and submit the State application;
                          (iii) evaluate and approve applications 
                      submitted by Local Councils under section 813;
                          (iv) ensure collaboration with respect to 
                      assistance provided under this title between the 
                      State agency responsible for education and the 
                      State agency responsible for children and family 
                      services;
                          (v) prepare and submit to the Secretary, an 
                      annual report on the activities carried out in the 
                      State under this title, which shall include a 
                      statement describing how all funds received under 
                      this title are expended and documentation of the 
                      effects that resources under this title have had 
                      on--
                                    (I) parental capacity to improve 
                                learning readiness in their young 
                                children;
                                    (II) early childhood literacy;
                                    (III) linkages among early learning 
                                programs;
                                    (IV) linkages between early learning 
                                programs and health care services for 
                                young children;
                                    (V) access to early learning 
                                activities for young children with 
                                special needs;
                                    (VI) access to existing early 
                                learning programs through expansion of 
                                the days or times that children are 
                                served;
                                    (VII) access to existing early 
                                learning programs through expansion of 
                                the number of young children served;
                                    (VIII) access to and affordability 
                                of existing early learning programs for 
                                low-income families;
                                    (IX) the quality of early learning 
                                programs resulting from professional 
                                development, and recruitment and 
                                retention incentives for caregivers; and
                                    (X) removal of ancillary barriers to 
                                early learning, including transportation 
                                difficulties and absence of programs 
                                during nontraditional work times; and
                          (vi) ensure that training and research is made 
                      available to Local Councils and that such training 
                      and research reflects the latest available brain 
                      development and early childhood development 
                      research related to early learning.

SEC. 811. STATE REQUIREMENTS.

    (a) Eligibility.--To be eligible for a grant under this title, a 
State shall--
            (1) ensure that funds received by the State under this title 
        shall be subject to appropriation by the State legislature, 
        consistent with the terms and conditions required under State 
        law;

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

            (2) designate a Lead State Agency under section 810(c) to 
        administer and monitor the grant and ensure State-level 
        coordination of early learning programs;
            (3) submit to the Secretary an application at such time, in 
        such manner, and accompanied by such information as the 
        Secretary may require;
            (4) ensure that funds made available under this title are 
        distributed on a competitive basis throughout the State to Local 
        Councils serving rural, urban, and suburban areas of the State; 
        and
            (5) assist the Secretary in developing mechanisms to ensure 
        that Local Councils receiving funds under this title comply with 
        the requirements of this title.

    (b) State Preference.--In awarding grants to Local Councils under 
this title, the State, to the maximum extent possible, shall ensure that 
a broad variety of early learning programs that provide a continuity of 
services across the age spectrum assisted under this title are funded 
under this title, and shall give preference to supporting--
            (1) a Local Council that meets criteria, that are specified 
        by the State and approved by the Secretary, for qualifying as 
        serving an area of greatest need for early learning programs; 
        and
            (2) a Local Council that demonstrates, in the application 
        submitted under section 813, the Local Council's potential to 
        increase collaboration as a means of maximizing use of resources 
        provided under this title with other resources available for 
        early learning programs.

    (c) Local Preference.--In awarding grants under this title, Local 
Councils shall give preference to supporting--
            (1) projects that demonstrate their potential to collaborate 
        as a means of maximizing use of resources provided under this 
        title with other resources available for early learning 
        programs;
            (2) programs that provide a continuity of services for young 
        children across the age spectrum, individually, or through 
        community-based networks or cooperative agreements; and
            (3) programs that help parents and other caregivers promote 
        early learning with their young children.

    (d) Performance Goals.--
            (1) Assessments.--Based on information and data received 
        from Local Councils, and information and data available through 
        State resources, the State shall biennially assess the needs and 
        available resources related to the provision of early learning 
        programs within the State.
            (2) Performance goals.--Based on the analysis of information 
        described in paragraph (1), the State shall establish measurable 
        performance goals to be achieved through activities assisted 
        under this title.
            (3) Requirement.--The State shall award grants to Local 
        Councils only for purposes that are consistent with the 
        performance goals established under paragraph (2).
            (4) Report.--The State shall report to the Secretary 
        annually regarding the State's progress toward achieving the 
        performance goals established in paragraph (2) and any necessary 
        modifications to those goals, including the rationale for the 
        modifications.

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

            (5) Improvement plans.--If the Secretary determines, based 
        on the State report submitted under paragraph (4), that the 
        State is not making progress toward achieving the performance 
        goals described in paragraph (2), then the State shall submit a 
        performance improvement plan to the Secretary, and demonstrate 
        reasonable progress in implementing such plan, in order to 
        remain eligible for funding under this title.

SEC. 812. LOCAL ALLOCATIONS.

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

SEC. 813. LOCAL APPLICATIONS.

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

SEC. 814. LOCAL ADMINISTRATION.

    (a) Local Council.--
            (1) In general.--To be eligible to receive funds under this 
        title, a local government entity, Indian tribe, Regional 
        Corporation, or Native Hawaiian entity, as appropriate, shall 
        establish or designate a Local Council, which shall be composed 
        of--
                    (A) representatives of local agencies directly 
                affected by early learning programs assisted under this 
                title;
                    (B) parents;
                    (C) other individuals concerned with early learning 
                issues in the locality, such as representative entities 
                providing elementary education, child care resource and 
                referral services, early learning opportunities, child 
                care, and health services; and
                    (D) other key community leaders.
            (2) Designating existing entity.--If a local government 
        entity, Indian tribe, Regional Corporation, or Native Hawaiian 
        entity has, before the date of enactment of the Early Learning 
        Opportunities Act, a Local Council or a regional entity that

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

        is comparable to the Local Council described in paragraph (1), 
        the entity, tribe, or corporation may designate the council or 
        entity as a Local Council under this title, and shall be 
        considered to have established a Local Council in compliance 
        with this subsection.
            (3) Functions.--The Local Council shall be responsible for 
        preparing and submitting the application described in section 
        813.

    (b) Administration.--
            (1) Administrative costs.--Not more than 3 percent of the 
        funds received by a Local Council under this title shall be used 
        to pay for the administrative costs of the Local Council in 
        carrying out this title.
            (2) Fiscal agent.--A Local Council may designate any entity, 
        with a demonstrated capacity for administering grants, that is 
        affected by, or concerned with, early learning issues, including 
        the State, to serve as fiscal agent for the administration of 
        grant funds received by the Local Council under this title.

              TITLE IX--RURAL EDUCATION ACHIEVEMENT PROGRAM

SEC. 901. RURAL EDUCATION INITIATIVE.

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

                 ``Subpart 2--Rural Education Initiative

``SEC. 10971. SHORT TITLE.

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

``SEC. 10972. PURPOSE.

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

``SEC. 10973. AUTHORIZATION OF APPROPRIATIONS.

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

``SEC. 10974. FORMULA GRANT PROGRAM AUTHORIZED.

    ``(a) Alternative Uses.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, an eligible local educational agency may use the applicable 
        funding, that the agency is eligible to receive from the State 
        educational agency for a fiscal year, to carry out local 
        activities authorized in part A of title I, section 2210(b), 
        section 3134, or section 4116.
            ``(2) Notification.--An eligible local educational agency 
        shall notify the State educational agency of the local 
        educational agency's intention to use the applicable funding in 
        accordance with paragraph (1) not later than a date that is 
        established by the State educational agency for the 
        notification.

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

    ``(b) Eligibility.--A local educational agency shall be eligible to 
use the applicable funding in accordance with subsection (a) if--
            ``(1) the total number of students in average daily 
        attendance at all of the schools served by the local educational 
        agency is less than 600; and
            ``(2) all of the schools served by the local educational 
        agency are designated with a School Locale Code of 7 or 8, as 
        determined by the Secretary of Education.

    ``(c) Applicable Funding.--In this section, the term `applicable 
funding' means funds provided under each of titles II, IV, and VI, 
except for funds made available under section 321 of the Department of 
Education Appropriations Act, 2001.
    ``(d) Disbursal.--Each State educational agency that receives 
applicable funding for a fiscal year shall disburse the applicable 
funding to local educational agencies for alternative uses under this 
section for the fiscal year at the same time that the State educational 
agency disburses the applicable funding to local educational agencies 
that do not intend to use the applicable funding for such alternative 
uses for the fiscal year.
    ``(e) Supplement Not Supplant.--Funds made available under this 
section shall be used to supplement and not supplant any other State or 
local education funds.
    ``(f ) Special Rule.--References in Federal law to funds for the 
provisions of law set forth in subsection (c) may be considered to be 
references to funds for this section.
    ``(g) Construction.--Nothing in this subpart shall be construed to 
prohibit a local educational agency that enters into cooperative 
arrangements with other local educational agencies for the provision of 
special, compensatory, or other education services pursuant to State law 
or a written agreement from entering into similar arrangements for the 
use or the coordination of the use of the funds made available under 
this subpart.

``SEC. 10975. COMPETITIVE GRANT PROGRAM AUTHORIZED.

    ``(a) In General.--The Secretary is authorized to award grants to 
eligible local educational agencies to enable the local educational 
agencies to carry out local activities authorized in part A of title I, 
section 2210(b), section 3134, or section 4116.
    ``(b) Eligibility.--A local educational agency shall be eligible to 
receive a grant under this section if--
            ``(1) the total number of students in average daily 
        attendance at all of the schools served by the local educational 
        agency is less than 600; and
            ``(2) all of the schools served by the local educational 
        agency are designated with a School Locale Code of 7 or 8, as 
        determined by the Secretary of Education.

    ``(c) Amount.--
            ``(1) In general.--The Secretary shall award a grant to a 
        local educational agency under this section for a fiscal year in 
        an amount equal to the amount determined under paragraph (2) for 
        the fiscal year minus the total amount received under the 
        provisions of law described under section 10974(c) for the 
        fiscal year.
            ``(2) Determination.--The amount referred to in paragraph 
        (1) is equal to $100 multiplied by the total number of students 
        in excess of 50 students that are in average daily attendance

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

        at the schools served by the local educational agency, plus 
        $20,000, except that the amount may not exceed $60,000.
            ``(3) Census determination.--
                    ``(A) In general.--Each local educational agency 
                desiring a grant under this section shall determine for 
                each year the number of kindergarten through grade 12 
                students in average daily attendance at the schools 
                served by the local educational agency during the period 
                beginning or the first day of classes and ending on 
                December 1.
                    ``(B) Submission.--Each local educational agency 
                shall submit the number described in subparagraph (A) to 
                the Secretary not later than March 1 of each year.
            ``(4) Penalty.--If the Secretary determines that a local 
        educational agency has knowingly submitted false information 
        under paragraph (3) for the purpose of gaining additional funds 
        under this section, then the local educational agency shall be 
        fined an amount equal to twice the difference between the amount 
        the local educational agency received under this section, and 
        the correct amount the local educational agency would have 
        received under this section if the agency had submitted accurate 
        information under paragraph (3).

    ``(d) Disbursal.--The Secretary shall disburse the funds awarded to 
a local educational agency under this section for a fiscal year not 
later than July 1 of that year.
    ``(e) Supplement Not Supplant.--Funds made available under this 
section shall be used to supplement and not supplant any other State or 
local education funds.

``SEC. 10976. ACCOUNTABILITY.

    ``(a) Academic Achievement.--
            ``(1) In general.--Each local educational agency that uses 
        or receives funds under section 10974 or 10975 for a fiscal year 
        shall--
                    ``(A) administer an assessment that is used 
                statewide and is consistent with the assessment 
                described in section 1111(b), to assess the academic 
                achievement of students in the schools served by the 
                local educational agency; or
                    ``(B) in the case of a local educational agency for 
                which there is no statewide assessment described in 
                subparagraph (A), administer a test, that is selected by 
                the local educational agency, to assess the academic 
                achievement of students in the schools served by the 
                local educational agency.
            ``(2) Special rule.--Each local educational agency that uses 
        or receives funds under section 10974 or 10975 shall use the 
        same assessment or test described in paragraph (1) for each year 
        of participation in the program carried out under such section.

    ``(b) State Educational Agency Determination Regarding Continuing 
Participation.--Each State educational agency that receives funding 
under the provisions of law described in section 10974(c) shall--
            ``(1) after the third year that a local educational agency 
        in the State participates in a program authorized under section 
        10974 or 10975 and on the basis of the results of the 
        assessments or tests described in subsection (a), determine 
        whether

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

        the students served by the local educational agency 
        participating in the program performed better on the assessments 
        or tests after the third year of the participation than the 
        students performed on the assessments or tests after the first 
        year of the participation;
            ``(2) permit only the local educational agencies that 
        participated in the program and served students that performed 
        better on the assessments or tests, as described in paragraph 
        (1), to continue to participate in the program for an additional 
        period of 3 years; and
            ``(3) prohibit the local educational agencies that 
        participated in the program and served students that did not 
        perform better on the assessments or tests, as described in 
        paragraph (1), from participating in the program, for a period 
        of 3 years from the date of the determination.

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

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

``SEC. 10978. APPLICABILITY.

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

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

                          APPENDIX B--H.R. 5657

That the following sums are appropriated, out of any money in the 
Treasury not otherwise appropriated, for the Legislative Branch for the 
fiscal year ending September 30, 2001, and for other purposes, namely:

                    TITLE I--CONGRESSIONAL OPERATIONS

                                 SENATE

       payment to widows and heirs of deceased members of congress

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

                           expense allowances

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

     representation allowances for the majority and minority leaders

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

                    Salaries, Officers and Employees

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

                      office of the vice president

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

                   office of the president pro tempore

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

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

              offices of the majority and minority leaders

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

               offices of the majority and minority whips

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

                       committee on appropriations

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

                          conference committees

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

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

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

                            policy committees

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

                         office of the chaplain

    For Office of the Chaplain, $288,000.

                         office of the secretary

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

              office of the sergeant at arms and doorkeeper

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

        offices of the secretaries for the majority and minority

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

                agency contributions and related expenses

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

             Office of the Legislative Counsel of the Senate

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

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

                     Office of Senate Legal Counsel

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

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

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

                    Contingent Expenses of the Senate

                      inquiries and investigations

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

 expenses of the united states senate caucus on international narcotics 
                                 control

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

                         secretary of the senate

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

              sergeant at arms and doorkeeper of the senate

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

                           miscellaneous items

    For miscellaneous items, $8,655,000.

         senators' official personnel and office expense account

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

                           official mail costs

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

                        administrative provisions

    Section 1. Semiannual Report. (a) In General.--Section 105(a) of the 
Legislative Branch Appropriations Act, 1965 (2 U.S.C. 104a) is amended 
by adding at the end the following:

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

    ``(5)(A) Notwithstanding the requirements of paragraph (1) relating 
to the level of detail of statement and itemization, each report by the 
Secretary of the Senate required under such paragraph shall be compiled 
at a summary level for each office of the Senate authorized to obligate 
appropriated funds.
    ``(B) Subparagraph (A) shall not apply to the reporting of 
expenditures relating to personnel compensation, travel and 
transportation of persons, other contractual services, and acquisition 
of assets.
    ``(C) In carrying out this paragraph the Secretary of the Senate 
shall apply the Standard Federal Object Classification of Expenses as 
the Secretary determines appropriate.''.
    (b) Effective Date and Application.--
            (1) In general.--Subject to paragraph (2), the amendment 
        made by this section shall take effect on the date of enactment 
        of this Act.
            (2) First report after enactment.--The Secretary of the 
        Senate may elect to compile and submit the report for the 
        semiannual period during which the date of enactment of this 
        section occurs, as if the amendment made by this section had not 
        been enacted.

    Sec. 2. Senate Employee Pay Adjustments. Section 4 of the Federal 
Pay Comparability Act of 1970 (2 U.S.C. 60a-1) is amended--
            (1) in subsection (a)--
                    (A) by inserting ``(or section 5304 or 5304a of such 
                title, as applied to employees employed in the pay 
                locality of the Washington, D.C.-Baltimore, Maryland 
                consolidated metropolitan statistical area)'' after 
                ``employees under section 5303 of title 5, United States 
                Code,''; and
                    (B) by inserting ``(and, as the case may be, section 
                5304 or 5304a of such title, as applied to employees 
                employed in the pay locality of the Washington, D.C.-
                Baltimore, Maryland consolidated metropolitan 
                statistical area)'' after ``the President under such 
                section 5303'';
            (2) by redesignating subsection (e) as subsection (f ); and
            (3) by inserting after subsection (d) the following:

    ``(e) Any percentage used in any statute specifically providing for 
an adjustment in rates of pay in lieu of an adjustment made under 
section 5303 of title 5, United States Code, and, as the case may be, 
section 5304 or 5304a of such title for any calendar year shall be 
treated as the percentage used in an adjustment made under such section 
5303, 5304, or 5304a, as applicable, for purposes of subsection (a).''.
    Sec. 3. (a) Section 6(c) of the Legislative Branch Appropriations 
Act, 1999 (2 U.S.C. 121b-1(c)) is amended--
            (1) by striking ``and agency contributions'' in paragraph 
        (2)(A), and
            (2) by adding at the end the following:
            ``(3) Agency contributions for employees of Senate Hair Care 
        Services shall be paid from the appropriations account for 
        `Salaries, Officers and Employees'.''.

    (b) This section shall apply to pay periods beginning on or after 
October 1, 2000.
    Sec. 4. (a) There is established in the Treasury of the United 
States a revolving fund to be known as the Senate Health and Fitness 
Facility Revolving Fund (``the revolving fund'').

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

    (b) The Architect of the Capitol shall deposit in the revolving 
fund--
            (1) any amounts received as dues or other assessments for 
        use of the Senate Health and Fitness Facility, and
            (2) any amounts received from the operation of the Senate 
        waste recycling program.

    (c) Subject to the approval of the Committee on Appropriations of 
the Senate, amounts in the revolving fund shall be available to the 
Architect of the Capitol, without fiscal year limitation, for payment of 
costs of the Senate Health and Fitness Facility.
    (d) The Architect of the Capitol shall withdraw from the revolving 
fund and deposit in the Treasury of the United States as miscellaneous 
receipts all moneys in the revolving fund that the Architect determines 
are in excess of the current and reasonably foreseeable needs of the 
Senate Health and Fitness Facility.
    (e) Subject to the approval of the Committee on Rules and 
Administration of the Senate, the Architect of the Capitol may issue 
such regulations as may be necessary to carry out the provisions of this 
section.
    Sec. 5. For each fiscal year (commencing with the fiscal year ending 
September 30, 2001), there is authorized an expense allowance for the 
Chairmen of the Majority and Minority Policy Committees which shall not 
exceed $3,000 each fiscal year for each such Chairman; and amounts from 
such allowance shall be paid to either of such Chairmen only as 
reimbursement for actual expenses incurred by him and upon certification 
and documentation of such expenses, and amounts so paid shall not be 
reported as income and shall not be allowed as a deduction under the 
Internal Revenue Code of 1986.
    Sec. 6. (a) The head of the employing office of an employee of the 
Senate may, upon termination of employment of the employee, authorize 
payment of a lump sum for the accrued annual leave of that employee if--
            (1) the head of the employing office--
                    (A) has approved a written leave policy authorizing 
                employees to accrue leave and establishing the 
                conditions upon which accrued leave may be paid; and
                    (B) submits written certification to the Financial 
                Clerk of the Senate of the number of days of annual 
                leave accrued by the employee for which payment is to be 
                made under the written leave policy of the employing 
                office; and
            (2) there are sufficient funds to cover the lump sum 
        payment.

    (b)(1) A lump sum payment under this section shall not exceed the 
lesser of--
            (A) twice the monthly rate of pay of the employee; or
            (B) the product of the daily rate of pay of the employee and 
        the number of days of accrued annual leave of the employee.

    (2) The Secretary of the Senate shall determine the rates of pay of 
an employee under paragraph (1)(A) and (B) on the basis of the annual 
rate of pay of the employee in effect on the date of termination of 
employment.
    (c) Any payment under this section shall be paid from the 
appropriation account or fund used to pay the employee.
    (d) If an individual who received a lump sum payment under this 
section is reemployed as an employee of the Senate before

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

the end of the period covered by the lump sum payment, the individual 
shall refund an amount equal to the applicable pay covering the period 
between the date of reemployment and the expiration of the lump sum 
period. Such amount shall be deposited to the appropriation account or 
fund used to pay the lump sum payment.
    (e) The Committee on Rules and Administration of the Senate may 
prescribe regulations to carry out this section.
    (f ) In this section, the term--
            (1) ``employee of the Senate'' means any employee whose pay 
        is disbursed by the Secretary of the Senate, except that the 
        term does not include a member of the Capitol Police or a 
        civilian employee of the Capitol Police; and
            (2) ``head of the employing office'' means any person with 
        the final authority to appoint, hire, discharge, and set the 
        terms, conditions, or privileges of the employment of an 
        individual whose pay is disbursed by the Secretary of the 
        Senate.

    Sec. 7. (a) Agency contributions for employees whose salaries are 
disbursed by the Secretary of the Senate from the appropriations account 
``Joint Economic Committee'' under the heading ``JOINT ITEMS'' shall be 
paid from the Senate appropriations account for ``Salaries, Officers and 
Employees''.
    (b) This section shall apply to pay periods beginning on or after 
October 1, 2000.
    Sec. 8. Section 316 of Public Law 101-302 (40 U.S.C. 188b-6) is 
amended--
            (1) in the first sentence of subsection (a) by striking 
        ``items of art, fine art, and historical items'' and inserting 
        ``works of art, historical objects, documents, or material 
        relating to historical matters for placement or exhibition'';
            (2) in the second sentence of subsection (a)--
                    (A) by striking ``such items'' each place it appears 
                and inserting ``such works, objects, documents, or 
                material'' in each such place; and
                    (B) by striking ``an item'' and inserting ``a work, 
                object, document, or material''; and
            (3) in subsection (b)--
                    (A) by striking ``such items of art'' and inserting 
                ``such works, objects, documents, or materials''; and
                    (B) by striking ``shall'' and inserting ``may''.

                        HOUSE OF REPRESENTATIVES

                          Salaries and Expenses

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

                        house leadership offices

    For salaries and expenses, as authorized by law, $14,378,000, 
including: Office of the Speaker, $1,759,000, including $25,000 for 
official expenses of the Speaker; Office of the Majority Floor Leader, 
$1,726,000, including $10,000 for official expenses of the Majority 
Leader; Office of the Minority Floor Leader, $2,096,000, including 
$10,000 for official expenses of the Minority Leader; Office of the 
Majority Whip, including the Chief Deputy Majority Whip, $1,466,000, 
including $5,000 for official expenses of the Majority

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

Whip; Office of the Minority Whip, including the Chief Deputy Minority 
Whip, $1,096,000, including $5,000 for official expenses of the Minority 
Whip; Speaker's Office for Legislative Floor Activities, $410,000; 
Republican Steering Committee, $765,000; Republican Conference, 
$1,255,000; Democratic Steering and Policy Committee, $1,352,000; 
Democratic Caucus, $668,000; nine minority employees, $1,229,000; 
training and program development--majority, $278,000; and training and 
program development--minority, $278,000.

                  Members' Representational Allowances

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

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

                           Committee Employees

                 Standing Committees, Special and Select

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

                       Committee on Appropriations

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

                    salaries, officers and employees

    For compensation and expenses of officers and employees, as 
authorized by law, $90,403,000, including: for salaries and expenses of 
the Office of the Clerk, including not more than $3,500, of which not 
more than $2,500 is for the Family Room, for official representation and 
reception expenses, $14,590,000; for salaries and expenses of the Office 
of the Sergeant at Arms, including the position of Superintendent of 
Garages, and including not more than $750 for official representation 
and reception expenses, $3,692,000; for salaries and expenses of the 
Office of the Chief Administrative Officer, $58,550,000, of which 
$1,054,000 shall remain available until expended, including $26,605,000 
for salaries, expenses and temporary personal services of House 
Information Resources, of which $26,020,000 is provided herein: 
Provided, That of the amount provided for House Information Resources, 
$6,497,000 shall be for net expenses of telecommunications: Provided 
further, That House Information Resources is authorized to receive 
reimbursement from Members of the House of Representatives and other 
governmental entities for services provided and such

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

reimbursement shall be deposited in the Treasury for credit to this 
account; for salaries and expenses of the Office of the Inspector 
General, $3,249,000; for salaries and expenses of the Office of General 
Counsel, $806,000; for the Office of the Chaplain, $140,000; for 
salaries and expenses of the Office of the Parliamentarian, including 
the Parliamentarian and $2,000 for preparing the Digest of Rules, 
$1,201,000; for salaries and expenses of the Office of the Law Revision 
Counsel of the House, $2,045,000; for salaries and expenses of the 
Office of the Legislative Counsel of the House, $5,085,000; for salaries 
and expenses of the Corrections Calendar Office, $832,000; and for other 
authorized employees, $213,000.

                         allowances and expenses

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

                            child care center

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

                        Administrative Provisions

    Sec. 101. During fiscal year 2001 and any succeeding fiscal year, 
the Chief Administrative Officer of the House of Representatives may--
            (1) enter into contracts for the acquisition of severable 
        services for a period that begins in 1 fiscal year and ends in 
        the next fiscal year to the same extent as the head of an 
        executive agency under the authority of section 303L of the 
        Federal Property and Administrative Services Act of 1949 (41 
        U.S.C. 253l); and
            (2) enter into multiyear contracts for the acquisitions of 
        property and nonaudit-related services to the same extent as 
        executive agencies under the authority of section 304B of the 
        Federal Property and Administrative Services Act of 1949 (41 
        U.S.C. 254c).

    Sec. 102. (a) Permitting New House Employees To Be Placed Above 
Minimum Step of Compensation Level.--The House Employees Position 
Classification Act (2 U.S.C. 291 et seq.) is amended by striking section 
10 (2 U.S.C. 299).
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to employees appointed on or after October 1, 2000.

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

    Sec. 103. (a) Requiring Amounts Remaining in Members' 
Representational Allowances To Be Used for Deficit Reduction or To 
Reduce the Federal Debt.--Notwithstanding any other provision of law, 
any amounts appropriated under this Act for ``HOUSE OF REPRESENTATIVES--
Salaries and Expenses--Members' Representational Allowances'' shall be 
available only for fiscal year 2001. Any amount remaining after all 
payments are made under such allowances for fiscal year 2001 shall be 
deposited in the Treasury and used for deficit reduction (or, if there 
is no Federal budget deficit after all such payments have been made, for 
reducing the Federal debt, in such manner as the Secretary of the 
Treasury considers appropriate).
    (b) Regulations.--The Committee on House Administration of the House 
of Representatives shall have authority to prescribe regulations to 
carry out this section.
    (c) Definition.--As used in this section, the term ``Member of the 
House of Representatives'' means a Representative in, or a Delegate or 
Resident Commissioner to, Congress.
    Sec. 104. (a) There is hereby appropriated for payment to the Prince 
William County Public Schools $215,000, to be used to pay for 
educational services for the son of Mrs. Evelyn Gibson, the widow of 
Detective John Michael Gibson of the United States Capitol Police.
    (b) The payment under subsection (a) shall be made in accordance 
with terms and conditions established by the Committee on House 
Administration of the House of Representatives.
    (c) The funds used for the payment made under subsection (a) shall 
be derived from the applicable accounts of the House of Representatives.

                               JOINT ITEMS

    For Joint Committees, as follows:

      Joint Congressional Committee on Inaugural Ceremonies of 2001

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

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

                        administrative provision

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

                        Joint Economic Committee

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

                       Joint Committee on Taxation

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

                    Office of the Attending Physician

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

                          Capitol Police Board

                             Capitol Police

                                salaries

    For the Capitol Police Board for salaries of officers, members, and 
employees of the Capitol Police, including overtime, hazardous duty pay 
differential, clothing allowance of not more than $600 each for members 
required to wear civilian attire, and Government contributions for 
health, retirement, Social Security, and other applicable employee 
benefits, $97,142,000, of which $47,053,000

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

is provided to the Sergeant at Arms of the House of Representatives, to 
be disbursed by the Chief Administrative Officer of the House, and 
$50,089,000 is provided to the Sergeant at Arms and Doorkeeper of the 
Senate, to be disbursed by the Secretary of the Senate: Provided, That, 
of the amounts appropriated under this heading, such amounts as may be 
necessary may be transferred between the Sergeant at Arms of the House 
of Representatives and the Sergeant at Arms and Doorkeeper of the 
Senate, upon approval of the Committee on Appropriations of the House of 
Representatives and the Committee on Appropriations of the Senate.

                            general expenses

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

                        Administrative Provisions

    Sec. 106. Amounts appropriated for fiscal year 2001 for the Capitol 
Police Board for the Capitol Police may be transferred between the 
headings ``salaries'' and ``general expenses'' upon the approval of--
            (1) the Committee on Appropriations of the House of 
        Representatives, in the case of amounts transferred from the 
        appropriation provided to the Sergeant at Arms of the House of 
        Representatives under the heading ``salaries'';
            (2) the Committee on Appropriations of the Senate, in the 
        case of amounts transferred from the appropriation provided to 
        the Sergeant at Arms and Doorkeeper of the Senate under the 
        heading ``salaries''; and
            (3) the Committees on Appropriations of the Senate and the 
        House of Representatives, in the case of other transfers.

    Sec. 107. (a) Appointment of Certifying Officers of the Capitol 
Police.--The Chief Administrative Officer of the United States Capitol 
Police, or when there is not a Chief Administrative Officer, the Capitol 
Police Board, shall appoint certifying officers to certify all vouchers 
for payment from funds made available to the United States Capitol 
Police.
    (b) Responsibility and Accountability of Certifying Officers.--
            (1) In general.--Each officer or employee of the Capitol 
        Police who has been duly authorized in writing by the Chief 
        Administrative Officer, or the Capitol Police Board if there

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

        is not a Chief Administrative Officer, to certify vouchers 
        pursuant to subsection (a) shall--
                    (A) be held responsible for the existence and 
                correctness of the facts recited in the certificate or 
                otherwise stated on the voucher or its supporting papers 
                and for the legality of the proposed payment under the 
                appropriation or fund involved;
                    (B) be held responsible and accountable for the 
                correctness of the computations of certified vouchers; 
                and
                    (C) be held accountable for and required to make 
                good to the United States the amount of any illegal, 
                improper, or incorrect payment resulting from any false, 
                inaccurate, or misleading certificate made by such 
                officer or employee, as well as for any payment 
                prohibited by law or which did not represent a legal 
                obligation under the appropriation or fund involved.
            (2) Relief by comptroller general.--The Comptroller General 
        may, at the Comptroller General's discretion, relieve such 
        certifying officer or employee of liability for any payment 
        otherwise proper if the Comptroller General finds--
                    (A) that the certification was based on official 
                records and that the certifying officer or employee did 
                not know, and by reasonable diligence and inquiry could 
                not have ascertained, the actual facts; or
                    (B) that the obligation was incurred in good faith, 
                that the payment was not contrary to any statutory 
                provision specifically prohibiting payments of the 
                character involved, and the United States has received 
                value for such payment.

    (c) Enforcement of Liability.--The liability of the certifying 
officers of the United States Capitol Police shall be enforced in the 
same manner and to the same extent as currently provided with respect to 
the enforcement of the liability of disbursing and other accountable 
officers, and such officers shall have the right to apply for and obtain 
a decision by the Comptroller General on any question of law involved in 
a payment on any vouchers presented to them for certification.
    Sec. 108. Chief Administrative Officer.--(a) There shall be within 
the Capitol Police an Office of Administration to be headed by a Chief 
Administrative Officer:
            (1) The Chief Administrative Officer shall be appointed by 
        the Comptroller General after consultation with the Capitol 
        Police Board, and shall report to and serve at the pleasure of 
        the Comptroller General.
            (2) The Comptroller General shall appoint as Chief 
        Administrative Officer an individual with the knowledge and 
        skills necessary to carry out the responsibilities for 
        budgeting, financial management, information technology, and 
        human resource management described in this section.
            (3) The Chief Administrative Officer shall receive basic pay 
        at a rate determined by the Comptroller General, but not to 
        exceed the annual rate of basic pay payable for ES-2 of the 
        Senior Executive Service Basic Rates Schedule established for 
        members of the Senior Executive Service of the General 
        Accounting Office under section 733 of title 31.

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

            (4) The Capitol Police shall reimburse from available 
        appropriations any costs incurred by the General Accounting 
        Office under this section.

    (b) The Chief Administrative Officer shall have the following areas 
of responsibility:
            (1) Budgeting.--The Chief Administrative Officer shall--
                    (A) after consulting with the Chief of Police on the 
                portion of the budget covering uniformed police force 
                personnel, prepare and submit to the Capitol Police 
                Board an annual budget for the Capitol Police; and
                    (B) execute the budget and monitor through periodic 
                examinations the execution of the Capitol Police budget 
                in relation to actual obligations and expenditures.
            (2) Financial management.--The Chief Administrative Officer 
        shall--
                    (A) oversee all financial management activities 
                relating to the programs and operations of the Capitol 
                Police;
                    (B) develop and maintain an integrated accounting 
                and financial system for the Capitol Police, including 
                financial reporting and internal controls, which--
                          (i) complies with applicable accounting 
                      principles, standards, and requirements, and 
                      internal control standards;
                          (ii) complies with any other requirements 
                      applicable to such systems;
                          (iii) provides for--
                                    (I) complete, reliable, consistent, 
                                and timely information which is prepared 
                                on a uniform basis and which is 
                                responsive to financial information 
                                needs of the Capitol Police;
                                    (II) the development and reporting 
                                of cost information;
                                    (III) the integration of accounting 
                                and budgeting information; and
                                    (IV) the systematic measurement of 
                                performance;
                    (C) direct, manage, and provide policy guidance and 
                oversight of Capitol Police financial management 
                personnel, activities, and operations, including--
                          (i) the recruitment, selection, and training 
                      of personnel to carry out Capitol Police financial 
                      management functions; and
                          (ii) the implementation of Capitol Police 
                      asset management systems, including systems for 
                      cash management, debt collection, and property and 
                      inventory management and control; and
                    (D) the Chief Administrative Officer shall prepare 
                annual financial statements for the Capitol Police and 
                provide for an annual audit of the financial statements 
                by an independent public accountant in accordance with 
                generally accepted government auditing standards.
            (3) Information technology.--The Chief Administrative 
        Officer shall--
                    (A) direct, coordinate, and oversee the acquisition, 
                use, and management of information technology by the 
                Capitol Police;

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

                    (B) promote and oversee the use of information 
                technology to improve the efficiency and effectiveness 
                of programs of the Capitol Police; and
                    (C) establish and enforce information technology 
                principles, guidelines, and objectives, including 
                developing and maintaining an information technology 
                architecture for the Capitol Police.
            (4) Human resources.--The Chief Administrative Officer 
        shall--
                    (A) direct, coordinate, and oversee human resource 
                management activities of the Capitol Police, except that 
                with respect to uniformed police force personnel, the 
                Chief Administrative Officer shall perform these 
                activities in cooperation with the Chief of the Capitol 
                Police;
                    (B) develop and monitor payroll and time and 
                attendance systems and employee services; and
                    (C) develop and monitor processes for recruiting, 
                selecting, appraising, and promoting employees.

    (c) Administrative provisions with respect to the Office of 
Administration:
            (1) The Chief Administrative Officer is authorized to 
        select, appoint, employ, and discharge such officers and 
        employees as may be necessary to carry out the functions, 
        powers, and duties of the Office of Administration but he shall 
        not have the authority to hire or discharge uniformed police 
        force personnel.
            (2) The Chief Administrative Officer may utilize resources 
        of another agency on a reimbursable basis to be paid from 
        available appropriations of the Capitol Police.

    (d) No later than 180 days after appointment, the Chief 
Administrative Officer shall prepare, after consultation with the 
Capitol Police Board and the Chief of the Capitol Police, a plan--
            (1) describing the policies, procedures, and actions the 
        Chief Administrative Officer will take in carrying out the 
        responsibilities assigned under this section;
            (2) identifying and defining responsibilities and roles of 
        all offices, bureaus, and divisions of the Capitol Police for 
        budgeting, financial management, information technology, and 
        human resources management; and
            (3) detailing mechanisms for ensuring that the offices, 
        bureaus, and divisions perform their responsibilities and roles 
        in a coordinated and integrated manner.

    (e) No later than September 30, 2001, the Chief Administrative 
Officer shall prepare, after consultation with the Capitol Police Board 
and the Chief of the Capitol Police, a report on the Chief 
Administrative Officer's progress in implementing the plan described in 
subsection (d) and recommendations to improve the budgeting, financial, 
information technology, and human resources management of the Capitol 
Police, including organizational, accounting and administrative control, 
and personnel changes.
    (f ) The Chief Administrative Officer shall submit the plan required 
in subsection (d) and the report required in subsection (e) to the 
Committees on Appropriations of the House of Representatives and of the 
Senate, the Committee on House Administration of the House of 
Representatives, and the Committee on Rules and Administration of the 
Senate.

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

    (g) As of October 1, 2002, unless otherwise determined by the 
Comptroller General, the Chief Administrative Officer established by 
section (a) will cease to be an employee of the General Accounting 
Office and will become an employee of the Capitol Police, and the 
Capitol Police Board shall assume all responsibilities of the 
Comptroller General under this section.
    Sec. 109. (a) Section 1(c) of Public Law 96-152 (40 U.S.C. 206-1) is 
amended by striking ``the annual rate'' and all that follows and 
inserting the following: ``the rate of basic pay payable for level ES-4 
of the Senior Executive Service, as established under subchapter VIII of 
chapter 53 of title 5, United States Code (taking into account any 
comparability payments made under section 5304(h) of such title).''.
    (b) The amendment made by subsection (a) shall apply with respect to 
pay periods beginning on or after the date of the enactment of this Act.

            Capitol Guide Service and Special Services Office

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

                      Statements of Appropriations

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

                          OFFICE OF COMPLIANCE

                          Salaries and Expenses

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

                       CONGRESSIONAL BUDGET OFFICE

                          Salaries and Expenses

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

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

                        Administrative Provision

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

                        ARCHITECT OF THE CAPITOL

                      Capitol Buildings and Grounds

                            capitol buildings

                          salaries and expenses

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

                             capitol grounds

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

                         senate office buildings

    For all necessary expenses for the maintenance, care and operation 
of Senate office buildings; and furniture and furnishings to

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

be expended under the control and supervision of the Architect of the 
Capitol, $63,974,000, of which $21,669,000 shall remain available until 
expended.

                         house office buildings

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

                           capitol power plant

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

                           LIBRARY OF CONGRESS

                     Congressional Research Service

                          salaries and expenses

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

                       GOVERNMENT PRINTING OFFICE

                   Congressional Printing and Binding

                      (including transfer of funds)

    For authorized printing and binding for the Congress and the 
distribution of Congressional information in any format; printing and 
binding for the Architect of the Capitol; expenses necessary

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

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

                        Administrative Provision

    Sec. 111. (a) Congressional Printing and Binding For the House 
Through Clerk of House.--
            (1) In general.--Notwithstanding any provision of title 44, 
        United States Code, or any other law, there are authorized to be 
        appropriated to the Clerk of the House of Representatives such 
        sums as may be necessary for congressional printing and binding 
        services for the House of Representatives.
            (2) Preparation of estimates.--Estimated expenditures and 
        proposed appropriations for congressional printing and binding 
        services shall be prepared and submitted by the Clerk of the 
        House of Representatives in accordance with title 31, United 
        States Code, in the same manner as estimates and requests are 
        prepared for other legislative branch services under such title, 
        except that such requests shall be based upon the results of the 
        study conducted under subsection (b) (with respect to any fiscal 
        year covered by such study).
            (3) Effective date.--This subsection shall apply with 
        respect to fiscal year 2003 and each succeeding fiscal year.

    (b) Study.--
            (1) In general.--During fiscal year 2001, the Clerk of the 
        House of Representatives shall conduct a comprehensive study of 
        the needs of the House for congressional printing and binding 
        services during fiscal year 2003 and succeeding fiscal years 
        (including transitional issues during fiscal year 2002), and 
        shall include in the study an analysis of the most cost-
        effective program or programs for providing printed or other 
        media-based publications for House uses.

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

            (2) Submission to committees.--The Clerk shall submit the 
        study conducted under paragraph (1) to the Committee on House 
        Administration of the House of Representatives, who shall review 
        the study and prepare such regulations or other materials 
        (including proposals for legislation) as it considers 
        appropriate to enable the Clerk to carry out congressional 
        printing and binding services for the House in accordance with 
        this section.

    (c) Definition.--In this section, the term ``congressional printing 
and binding services'' means the following services:
            (1) Authorized printing and binding for the Congress and the 
        distribution of congressional information in any format.
            (2) Preparing the semimonthly and session index to the 
        Congressional Record.
            (3) Printing and binding of Government publications 
        authorized by law to be distributed to Members of Congress.
            (4) Printing, binding, and distribution of Government 
        publications authorized by law to be distributed without charge 
        to the recipient.

    This title may be cited as the ``Congressional Operations 
Appropriations Act, 2001''.

                        TITLE II--OTHER AGENCIES

                             BOTANIC GARDEN

                          Salaries and Expenses

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

                           LIBRARY OF CONGRESS

                          Salaries and Expenses

    For necessary expenses of the Library of Congress not otherwise 
provided for, including development and maintenance of the Union 
Catalogs; custody and custodial care of the Library buildings; special 
clothing; cleaning, laundering and repair of uniforms; preservation of 
motion pictures in the custody of the Library; operation and maintenance 
of the American Folklife Center in the Library; preparation and 
distribution of catalog records and other publications of the Library; 
hire or purchase of one passenger motor vehicle; and expenses of the 
Library of Congress Trust Fund Board not properly chargeable to the 
income of any trust fund held by the Board, $282,838,000, of which not 
more than $6,500,000 shall be derived from collections credited to this 
appropriation during fiscal year 2001, and shall remain available until 
expended, under the Act of June 28, 1902 (chapter 1301; 32 Stat. 480; 2 
U.S.C. 150) and not more than $350,000 shall be derived from collections 
during fiscal year 2001 and shall remain available until expended for 
the development and maintenance of an international legal information 
database and activities related thereto: Provided, That the Library of 
Congress may not obligate or expend any funds

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

derived from collections under the Act of June 28, 1902, in excess of 
the amount authorized for obligation or expenditure in appropriations 
Acts: Provided further, That the total amount available for obligation 
shall be reduced by the amount by which collections are less than the 
$6,850,000: Provided further, That of the total amount appropriated, 
$10,459,575 is to remain available until expended for acquisition of 
books, periodicals, newspapers, and all other materials including 
subscriptions for bibliographic services for the Library, including 
$40,000 to be available solely for the purchase, when specifically 
approved by the Librarian, of special and unique materials for additions 
to the collections: Provided further, That of the total amount 
appropriated, $2,506,000 is to remain available until expended for the 
acquisition and partial support for implementation of an Integrated 
Library System (ILS): Provided further, That of the total amount 
appropriated, $10,000,000 is to remain available until expended for 
salaries and expenses to carry out the Russian Leadership Program 
enacted on May 21, 1999 (113 Stat. 93 et seq.): Provided further, That 
of the total amount appropriated, $5,957,800 is to remain available 
until expended for the purpose of teaching educators how to incorporate 
the Library's digital collections into school curricula, which amount 
shall be transferred to the educational consortium formed to conduct the 
``Joining Hands Across America: Local Community Initiative'' project as 
approved by the Library: Provided further, That of the total amount 
appropriated, $404,000 is to remain available until expended for a 
collaborative digitization and telecommunications project with the 
United States Military Academy and any remaining balance is available 
for other Library purposes: Provided further, That of the total amount 
appropriated, $4,300,000 is to remain available until expended for the 
purpose of developing a high speed data transmission between the Library 
of Congress and educational facilities, libraries, or networks serving 
western North Carolina, and any remaining balance is available for 
support of the Library's Digital Futures initiative.

                            Copyright Office

                          salaries and expenses

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

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

in connection with official representation and reception expenses for 
activities of the International Copyright Institute and for copyright 
delegations, visitors, and seminars.

             Books for the Blind and Physically Handicapped

                          salaries and expenses

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

                        Furniture and Furnishings

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

                        Administrative Provisions

    Sec. 201. Appropriations in this Act available to the Library of 
Congress shall be available, in an amount of not more than $199,630, of 
which $59,300 is for the Congressional Research Service, when 
specifically authorized by the Librarian of Congress, for attendance at 
meetings concerned with the function or activity for which the 
appropriation is made.
    Sec. 202. (a) No part of the funds appropriated in this Act shall be 
used by the Library of Congress to administer any flexible or compressed 
work schedule which--
            (1) applies to any manager or supervisor in a position the 
        grade or level of which is equal to or higher than GS-15; and
            (2) grants such manager or supervisor the right to not be at 
        work for all or a portion of a workday because of time worked by 
        the manager or supervisor on another workday.

    (b) For purposes of this section, the term ``manager or supervisor'' 
means any management official or supervisor, as such terms are defined 
in section 7103(a)(10) and (11) of title 5, United States Code.
    Sec. 203. Appropriated funds received by the Library of Congress 
from other Federal agencies to cover general and administrative overhead 
costs generated by performing reimbursable work for other agencies under 
the authority of sections 1535 and 1536 of title 31, United States Code, 
shall not be used to employ more than 65 employees and may be expended 
or obligated--
            (1) in the case of a reimbursement, only to such extent or 
        in such amounts as are provided in appropriations Acts; or
            (2) in the case of an advance payment, only--
                    (A) to pay for such general or administrative 
                overhead costs as are attributable to the work performed 
                for such agency; or
                    (B) to such extent or in such amounts as are 
                provided in appropriations Acts, with respect to any 
                purpose not allowable under subparagraph (A).

    Sec. 204. Of the amounts appropriated to the Library of Congress in 
this Act, not more than $5,000 may be expended, on the certification of 
the Librarian of Congress, in connection with

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

official representation and reception expenses for the incentive awards 
program.
    Sec. 205. Of the amount appropriated to the Library of Congress in 
this Act, not more than $12,000 may be expended, on the certification of 
the Librarian of Congress, in connection with official representation 
and reception expenses for the Overseas Field Offices.
    Sec. 206. (a) For fiscal year 2001, the obligational authority of 
the Library of Congress for the activities described in subsection (b) 
may not exceed $92,845,000.
    (b) The activities referred to in subsection (a) are reimbursable 
and revolving fund activities that are funded from sources other than 
appropriations to the Library in appropriations Acts for the legislative 
branch.
    Sec. 207. Section 1 of the Act entitled ``An Act to authorize 
acquisition of certain real property for the Library of Congress, and 
for other purposes'', approved December 15, 1997 (2 U.S.C. 141 note) is 
amended by adding at the end the following new subsection:
    ``(c) Transfer Payment by Architect.--Notwithstanding the limitation 
on reimbursement or transfer of funds under subsection (a) of this 
section, the Architect of the Capitol may, not later than 90 days after 
acquisition of the property under this section, transfer funds to the 
entity from which the property was acquired by the Architect of the 
Capitol. Such transfers may not exceed a total of $16,500,000.''.
    Sec. 208. The Librarian of Congress may convert to permanent 
positions 84 indefinite, time-limited positions in the National Digital 
Library Program authorized in the Legislative Branch Appropriations Act, 
1996 for the Library of Congress under the heading, ``Salaries and 
Expenses'' (Public Law 104-53). Notwithstanding any other provision of 
law regarding qualifications and methods of appointment of employees of 
the Library of Congress, the Librarian may fill these permanent 
positions through the non-competitive conversion of the incumbents in 
the ``indefinite-not-to-exceed'' positions to ``permanent'' positions.
    Sec. 209. (a) In addition to any other transfer authority provided 
by law, during fiscal year 2001 and fiscal years thereafter, the 
Librarian of Congress may transfer to and among available accounts of 
the Library of Congress amounts appropriated to the Librarian from funds 
for the purchase, installation, maintenance, and repair of furniture, 
furnishings, and office and library equipment.
    (b) Any amounts transferred pursuant to subsection (a) shall be 
merged with and be available for the same purpose and for the same 
period as the appropriation or account to which such amounts are 
transferred.
    (c) The Librarian may transfer amounts pursuant to subsection (a) 
only with the approval of the Committees on Appropriations of the House 
of Representatives and Senate.
    Sec. 210. (a)(1) This subsection shall apply to any individual who--
            (A) is employed by the Library of Congress Child Development 
        Center (known as the ``Little Scholars Child Development 
        Center'', in this section referred to as the ``Center'') 
        established under section 205(g)(1) of the Legislative Branch 
        Appropriations Act, 1991; and

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

            (B) makes an election to be covered by this subsection with 
        the Librarian of Congress, not later than the later of--
                    (i) 60 days after the date of enactment of this Act; 
                or
                    (ii) 60 days after the date the individual begins 
                such employment.

    (2)(A) Any individual described under paragraph (1) may be credited, 
under section 8411 of title 5, United States Code, for service as an 
employee of the Center before the date of enactment of this Act, if such 
employee makes a payment of the deposit under section 8411(f )(2) of 
such title without application of section 8411(b)(3) of such title.
    (B) An individual described under paragraph (1) shall be credited 
under section 8411 of title 5, United States Code, for any service as an 
employee of the Center on or after the date of enactment of this Act, if 
such employee has such amounts deducted and withheld from his pay as 
determined by the Office of Personnel Management which would be deducted 
and withheld from the basic pay of an employee under section 8422 of 
title 5, United States Code.
    (3) Notwithstanding any other provision of this subsection, any 
service performed by an individual described under paragraph (1) as an 
employee of the Center is deemed to be civilian service creditable under 
section 8411 of title 5, United States Code, for purposes of qualifying 
for survivor annuities and disability benefits under subchapters IV and 
V of chapter 84 of such title, if such individual makes payment of an 
amount, determined by the Office of Personnel Management, which would 
have been deducted and withheld from the basic pay of such individual if 
such individual had been an employee subject to section 8422 of title 5, 
United States Code, for such period so credited, together with interest 
thereon.
    (4) An individual described under paragraph (1) shall be deemed an 
employee for purposes of chapter 84 of title 5, United States Code, 
including subchapter III of such title, and may make contributions under 
section 8432 of such title effective for the first applicable pay period 
beginning on or after the date such individual elects coverage under 
this section.
    (5) The Office of Personnel Management shall accept the 
certification of the Librarian of Congress concerning creditable service 
for purposes of this subsection.
    (b) Any individual who is employed by the Center on or after the 
date of enactment of this Act shall be deemed an employee under section 
8901(1) of title 5, United States Code, for purposes of health insurance 
coverage under chapter 89 of such title. An individual who is an 
employee of the Center on the date of enactment of this Act may elect 
coverage under this subsection before the 60th day after the date of 
enactment of this Act, and during such periods as determined by the 
Office of Personnel Management for employees of the Center employed 
after such date.
    (c) An individual who is employed by the Center shall be deemed an 
employee under section 8701(a) of title 5, United States Code, for 
purposes of life insurance coverage under chapter 87 of such title.
    (d) Government contributions for individuals receiving benefits 
under this section, as computed under sections 8423, 8432, 8708,

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

and 8906 shall be made by the Librarian of Congress from any 
appropriations available to the Library of Congress.
    (e) The Library of Congress, directly or by agreement with its 
designated representative, shall--
            (1) process payroll for Center employees, including making 
        deductions and withholdings from the pay of employees in the 
        amounts determined under sections 8422, 8432, 8707, and 8905 of 
        title 5, United States Code;
            (2) maintain appropriate personnel and payroll records for 
        Center employees, and transmit appropriate information and 
        records to the Office of Personnel Management; and
            (3) transmit funds for Government and employee contributions 
        under this section to the Office of Personnel Management.

    (f ) The Center shall--
            (1) pay to the Library of Congress funds sufficient to cover 
        the gross salary and the employer's share of taxes under section 
        3111 of the Internal Revenue Code of 1986 for Center employees, 
        in amounts computed by the Library of Congress;
            (2) as required by the Library of Congress, reimburse the 
        Library of Congress for reasonable administrative costs incurred 
        under subsection (e)(1);
            (3) comply with regulations and procedures prescribed by the 
        Librarian of Congress for administration of this section;
            (4) maintain appropriate records on all Center employees, as 
        required by the Librarian of Congress; and
            (5) consult with the Librarian of Congress on the 
        administration and implementation of this section.

    (g) The Librarian of Congress may prescribe regulations to carry out 
this section.

                        ARCHITECT OF THE CAPITOL

                      Library Buildings and Grounds

                     structural and mechanical care

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

                       GOVERNMENT PRINTING OFFICE

                  Office of Superintendent of Documents

                          salaries and expenses

                      (including transfer of funds)

    For expenses of the Office of Superintendent of Documents necessary 
to provide for the cataloging and indexing of Government publications 
and their distribution to the public, Members of Congress, other 
Government agencies, and designated depository and international 
exchange libraries as authorized by law, $27,954,000: Provided, That 
travel expenses, including travel expenses of the Depository Library 
Council to the Public Printer, shall not exceed $175,000: Provided 
further, That amounts of not more than $2,000,000 from current year 
appropriations are authorized for

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

producing and disseminating Congressional serial sets and other related 
publications for 1999 and 2000 to depository and other designated 
libraries: Provided further, That any unobligated or unexpended balances 
in this account or accounts for similar purposes for preceding fiscal 
years may be transferred to the Government Printing Office revolving 
fund for carrying out the purposes of this heading, subject to the 
approval of the Committees on Appropriations of the House of 
Representatives and Senate.

                Government Printing Office Revolving Fund

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

                        GENERAL ACCOUNTING OFFICE

                          Salaries and Expenses

    For necessary expenses of the General Accounting Office, including 
not more than $10,000 to be expended on the certification of the 
Comptroller General of the United States in connection with official 
representation and reception expenses; temporary or intermittent 
services under section 3109(b) of title 5, United States Code, but at 
rates for individuals not more than the daily equivalent of the annual 
rate of basic pay for level IV of the Executive Schedule under section 
5315 of such title; hire of one passenger motor vehicle; advance 
payments in foreign countries in accordance with section

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

3324 of title 31, United States Code; benefits comparable to those 
payable under sections 901(5), 901(6), and 901(8) of the Foreign Service 
Act of 1980 (22 U.S.C. 4081(5), 4081(6), and 4081(8)); and under 
regulations prescribed by the Comptroller General of the United States, 
rental of living quarters in foreign countries, $384,867,000: Provided, 
That not more than $1,900,000 of payments received under 31 U.S.C. 782 
shall be available for use in fiscal year 2001: Provided further, That 
not more than $1,100,000 of reimbursements received under 31 U.S.C. 9105 
shall be available for use in fiscal year 2001: Provided further, That 
this appropriation and appropriations for administrative expenses of any 
other department or agency which is a member of the National 
Intergovernmental Audit Forum or a Regional Intergovernmental Audit 
Forum shall be available to finance an appropriate share of either 
Forum's costs as determined by the respective Forum, including necessary 
travel expenses of non-Federal participants. Payments hereunder to the 
Forum may be credited as reimbursements to any appropriation from which 
costs involved are initially financed: Provided further, That this 
appropriation and appropriations for administrative expenses of any 
other department or agency which is a member of the American Consortium 
on International Public Administration (ACIPA) shall be available to 
finance an appropriate share of ACIPA costs as determined by the ACIPA, 
including any expenses attributable to membership of ACIPA in the 
International Institute of Administrative Sciences.

                      TITLE III--GENERAL PROVISIONS

    Sec. 301. No part of the funds appropriated in this Act shall be 
used for the maintenance or care of private vehicles, except for 
emergency assistance and cleaning as may be provided under regulations 
relating to parking facilities for the House of Representatives issued 
by the Committee on House Administration and for the Senate issued by 
the Committee on Rules and Administration.
    Sec. 302. No part of the funds appropriated in this Act shall remain 
available for obligation beyond fiscal year 2001 unless expressly so 
provided in this Act.
    Sec. 303. Whenever in this Act any office or position not 
specifically established by the Legislative Pay Act of 1929 is 
appropriated for or the rate of compensation or designation of any 
office or position appropriated for is different from that specifically 
established by such Act, the rate of compensation and the designation in 
this Act shall be the permanent law with respect thereto: Provided, That 
the provisions in this Act for the various items of official expenses of 
Members, officers, and committees of the Senate and House of 
Representatives, and clerk hire for Senators and Members of the House of 
Representatives shall be the permanent law with respect thereto.
    Sec. 304. The expenditure of any appropriation under this Act for 
any consulting service through procurement contract, pursuant to section 
3109 of title 5, United States Code, shall be limited to those contracts 
where such expenditures are a matter of public record and available for 
public inspection, except where otherwise provided under existing law, 
or under existing Executive order issued pursuant to existing law.

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

    Sec. 305. (a) It is the sense of the Congress that, to the greatest 
extent practicable, all equipment and products purchased with funds made 
available in this Act should be American-made.
    (b) In providing financial assistance to, or entering into any 
contract with, any entity using funds made available in this Act, the 
head of each Federal agency, to the greatest extent practicable, shall 
provide to such entity a notice describing the statement made in 
subsection (a) by the Congress.
    (c) If it has been finally determined by a court or Federal agency 
that any person intentionally affixed a label bearing a ``Made in 
America'' inscription, or any inscription with the same meaning, to any 
product sold in or shipped to the United States that is not made in the 
United States, such person shall be ineligible to receive any contract 
or subcontract made with funds provided pursuant to this Act, pursuant 
to the debarment, suspension, and ineligibility procedures described in 
section 9.400 through 9.409 of title 48, Code of Federal Regulations.
    Sec. 306. Such sums as may be necessary are appropriated to the 
account described in subsection (a) of section 415 of Public Law 104-1 
to pay awards and settlements as authorized under such subsection.
    Sec. 307. Amounts available for administrative expenses of any 
legislative branch entity which participates in the Legislative Branch 
Financial Managers Council (LBFMC) established by charter on March 26, 
1996, shall be available to finance an appropriate share of LBFMC costs 
as determined by the LBFMC, except that the total LBFMC costs to be 
shared among all participating legislative branch entities (in such 
allocations among the entities as the entities may determine) may not 
exceed $252,000.
    Sec. 308. No part of any appropriation contained in this Act under 
the heading ``Architect of the Capitol'' or ``Botanic Garden'' shall be 
obligated or expended for a construction contract in excess of $100,000, 
unless such contract includes a provision that requires liquidated 
damages for contractor caused delay in an amount commensurate with the 
daily net usable square foot cost of leasing similar space in a first 
class office building within two miles of the United States Capitol 
multiplied by the square footage to be constructed under the contract.
    Sec. 309. Section 316 of Public Law 101-302 is amended in the first 
sentence of subsection (a) by striking ``2000'' and inserting ``2001''.
    Sec. 310. Russian Leadership Program. Section 3011 of the 1999 
Emergency Supplemental Appropriations Act (Public Law 106-31; 113 Stat. 
93) is amended--
            (1) by striking ``fiscal years 1999 and 2000'' in 
        subsections (a)(1), (b)(4)(B), (d)(3), and (h)(1)(A) and 
        inserting ``fiscal years 2000 and 2001''; and
            (2) by striking ``2001'' in subsection (a)(2), (e)(1), and 
        (h)(1)(B) and inserting ``2002''.

    Sec. 311. (a)(1) Any State may request the Joint Committee on the 
Library of Congress to approve the replacement of a statue the State has 
provided for display in Statuary Hall in the Capitol of the United 
States under section 1814 of the Revised Statutes (40 U.S.C. 187).
    (2) A request shall be considered under paragraph (1) only if--

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

            (A) the request has been approved by a resolution adopted by 
        the legislature of the State and the request has been approved 
        by the Governor of the State, and
            (B) the statue to be replaced has been displayed in the 
        Capitol of the United States for at least 10 years as of the 
        time the request is made, except that the Joint Committee may 
        waive this requirement for cause at the request of a State.

    (b) If the Joint Committee on the Library of Congress approves a 
request under subsection (a), the Architect of the Capitol shall enter 
into an agreement with the State to carry out the replacement in 
accordance with the request and any conditions the Joint Committee may 
require for its approval. Such agreement shall provide that--
            (1) the new statue shall be subject to the same conditions 
        and restrictions as apply to any statue provided by a State 
        under section 1814 of the Revised Statutes (40 U.S.C. 187), and
            (2) the State shall pay any costs related to the 
        replacement, including costs in connection with the design, 
        construction, transportation, and placement of the new statue, 
        the removal and transportation of the statue being replaced, and 
        any unveiling ceremony.

    (c) Nothing in this section shall be interpreted to permit a State 
to have more than two statues on display in the Capitol of the United 
States.
    (d)(1) Subject to the approval of the Joint Committee on the 
Library, ownership of any statue replaced under this section shall be 
transferred to the State.
    (2) If any statue is removed from the Capitol of the United States 
as part of a transfer of ownership under paragraph (1), then it may not 
be returned to the Capitol for display unless such display is 
specifically authorized by Federal law.
    (e) The Architect of the Capitol, upon the approval of the Joint 
Committee on the Library and with the advice of the Commission of Fine 
Arts as requested, is authorized and directed to relocate within the 
United States Capitol any of the statues received from the States under 
section 1814 of the Revised Statutes (40 U.S.C. 187) prior to the date 
of the enactment of this Act, and to provide for the reception, 
location, and relocation of the statues received hereafter from the 
States under such section.
    Sec. 312. (a) Section 201 of the Legislative Branch Appropriations 
Act, 1993 (40 U.S.C. 216c note) is amended by striking ``$10,000,000'' 
each place it appears and inserting ``$14,500,000''.
    (b) Section 201 of such Act is amended--
            (1) by inserting ``(a)'' before ``Pursuant'', and
            (2) by adding at the end the following:

    ``(b) The Architect of the Capitol is authorized to solicit, 
receive, accept, and hold amounts under section 307E(a)(2) of the 
Legislative Branch Appropriations Act, 1989 (40 U.S.C. 216c(a)(2)) in 
excess of the $14,500,000 authorized under subsection (a), but such 
amounts (and any interest thereon) shall not be expended by the 
Architect without approval in appropriation Acts as required under 
section 307E(b)(3) of such Act (40 U.S.C. 216c(b)(3)).''.
    Sec. 313. Center for Russian Leadership Development. (a) 
Establishment.--

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

            (1) In general.--There is established in the legislative 
        branch of the Government a center to be known as the ``Center 
        for Russian Leadership Development'' (the ``Center'').
            (2) Board of trustees.--The Center shall be subject to the 
        supervision and direction of a Board of Trustees which shall be 
        composed of nine members as follows:
                    (A) Two members appointed by the Speaker of the 
                House of Representatives, one of whom shall be 
                designated by the Majority Leader of the House of 
                Representatives and one of whom shall be designated by 
                the Minority Leader of the House of Representatives.
                    (B) Two members appointed by the President pro 
                tempore of the Senate, one of whom shall be designated 
                by the Majority Leader of the Senate and one of whom 
                shall be designated by the Minority Leader of the 
                Senate.
                    (C) The Librarian of Congress.
                    (D) Four private individuals with interests in 
                improving United States and Russian relations, 
                designated by the Librarian of Congress.
        Each member appointed under this paragraph shall serve for a 
        term of 3 years. Any vacancy shall be filled in the same manner 
        as the original appointment and the individual so appointed 
        shall serve for the remainder of the term. Members of the Board 
        shall serve without pay, but shall be entitled to reimbursement 
        for travel, subsistence, and other necessary expenses incurred 
        in the performance of their duties.

    (b) Purpose and Authority of the Center.--
            (1) Purpose.--The purpose of the Center is to establish, in 
        accordance with the provisions of paragraph (2), a program to 
        enable emerging political leaders of Russia at all levels of 
        government to gain significant, firsthand exposure to the 
        American free market economic system and the operation of 
        American democratic institutions through visits to governments 
        and communities at comparable levels in the United States.
            (2) Grant program.--Subject to the provisions of paragraphs 
        (3) and (4), the Center shall establish a program under which 
        the Center annually awards grants to government or community 
        organizations in the United States that seek to establish 
        programs under which those organizations will host Russian 
        nationals who are emerging political leaders at any level of 
        government.
            (3) Restrictions.--
                    (A) Duration.--The period of stay in the United 
                States for any individual supported with grant funds 
                under the program shall not exceed 30 days.
                    (B) Limitation.--The number of individuals supported 
                with grant funds under the program shall not exceed 
                3,000 in any fiscal year.
                    (C) Use of funds.--Grant funds under the program 
                shall be used to pay--
                          (i) the costs and expenses incurred by each 
                      program participant in traveling between Russia 
                      and the United States and in traveling within the 
                      United States;
                          (ii) the costs of providing lodging in the 
                      United States to each program participant, whether 
                      in public accommodations or in private homes; and

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

                          (iii) such additional administrative expenses 
                      incurred by organizations in carrying out the 
                      program as the Center may prescribe.
            (4) Application.--
                    (A) In general.--Each organization in the United 
                States desiring a grant under this section shall submit 
                an application to the Center at such time, in such 
                manner, and accompanied by such information as the 
                Center may reasonably require.
                    (B) Contents.--Each application submitted pursuant 
                to subparagraph (A) shall--
                          (i) describe the activities for which 
                      assistance under this section is sought;
                          (ii) include the number of program 
                      participants to be supported;
                          (iii) describe the qualifications of the 
                      individuals who will be participating in the 
                      program; and
                          (iv) provide such additional assurances as the 
                      Center determines to be essential to ensure 
                      compliance with the requirements of this section.

    (c) Establishment of Fund.--
            (1) In general.--There is established in the Treasury of the 
        United States a trust fund to be known as the ``Russian 
        Leadership Development Center Trust Fund'' (the ``Fund'') which 
        shall consist of amounts which may be appropriated, credited, or 
        transferred to it under this section.
            (2) Donations.--Any money or other property donated, 
        bequeathed, or devised to the Center under the authority of this 
        section shall be credited to the Fund.
            (3) Fund management.--
                    (A) In general.--The provisions of subsections (b), 
                (c), and (d) of section 116 of the Legislative Branch 
                Appropriations Act, 1989 (2 U.S.C. 1105 (b), (c), and 
                (d)), and the provisions of section 117(b) of such Act 
                (2 U.S.C. 1106(b)), shall apply to the Fund.
                    (B) Expenditures.--The Secretary of the Treasury is 
                authorized to pay to the Center from amounts in the Fund 
                such sums as the Board of Trustees of the Center 
                determines are necessary and appropriate to enable the 
                Center to carry out the provisions of this section.

    (d) Executive Director.--The Board shall appoint an Executive 
Director who shall be the chief executive officer of the Center and who 
shall carry out the functions of the Center subject to the supervision 
and direction of the Board of Trustees. The Executive Director of the 
Center shall be compensated at the annual rate specified by the Board, 
but in no event shall such rate exceed level III of the Executive 
Schedule under section 5314 of title 5, United States Code.
    (e) Administrative Provisions.--
            (1) In general.--The provisions of section 119 of the 
        Legislative Branch Appropriations Act, 1989 (2 U.S.C. 1108) 
        shall apply to the Center.
            (2) Support provided by library of congress.--The Library of 
        Congress may disburse funds appropriated to the Center, compute 
        and disburse the basic pay for all personnel of the Center, 
        provide administrative, legal, financial management, and other 
        appropriate services to the Center, and collect

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

        from the Fund the full costs of providing services under this 
        paragraph, as provided under an agreement for services ordered 
        under sections 1535 and 1536 of title 31, United States Code.

    (f ) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to carry out this section.
    (g) Transfer of Funds.--Any amounts appropriated for use in the 
program established under section 3011 of the 1999 Emergency 
Supplemental Appropriations Act (Public Law 106-31; 113 Stat. 93) shall 
be transferred to the Fund and shall remain available without fiscal 
year limitation.
    (h) Effective Dates.--
            (1) In general.--This section shall take effect on the date 
        of enactment of this Act.
            (2) Transfer.--Subsection (g) shall only apply to amounts 
        which remain unexpended on and after the date the Board of 
        Trustees of the Center certifies to the Librarian of Congress 
        that grants are ready to be made under the program established 
        under this section.

    Sec. 314. Review of Proposed Changes to Export Thresholds for 
Computers. Not more than 50 days after the date of the submission of the 
report referred to in subsection (d) of section 1211 of the National 
Defense Authorization Act for Fiscal Year 1998 (50 U.S.C. App. 2404 
note), the Comptroller General of the United States shall submit an 
assessment to Congress which contains an analysis of the new computer 
performance levels being proposed by the President under such section.

    TITLE IV--EMERGENCY FISCAL YEAR 2000 SUPPLEMENTAL APPROPRIATIONS

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

                          Capitol Police Board

                          security enhancements

    For an additional amount for the Capitol Police Board for costs 
associated with security enhancements, under the terms and conditions of 
chapter 5 of title II of division B of the Omnibus Consolidated and 
Emergency Supplemental Appropriations Act, 1999 (Public Law 105-277), 
$2,102,000, to remain available until expended, of which--
            (1) $228,000 shall be for the acquisition and installation 
        of card readers for four additional access points which are not 
        currently funded under the implementation of the security 
        enhancement plan; and
            (2) $1,874,000 shall be for security enhancements to the 
        buildings and grounds of the Library of Congress:

Provided, That the entire amount is designated by Congress as an 
emergency requirement pursuant to section 251(b)(2)(A) of the Balanced 
Budget and Emergency Deficit Control Act of 1985, as amended: Provided 
further, That the entire amount shall be available only to the extent an 
official budget request for a specific

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

dollar amount that includes designation of the entire amount of the 
request as an emergency requirement as defined in the Balanced Budget 
and Emergency Deficit Control Act of 1985, as amended, is transmitted by 
the President to the Congress.

                        ARCHITECT OF THE CAPITOL

                      Capitol Buildings and Grounds

                         house office buildings

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

               DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

                     Federal Housing Administration

              fha--general and special risk program account

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

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

                          APPENDIX C--H.R. 5658

That the following sums are appropriated, out of any money in the 
Treasury not otherwise appropriated, for the Treasury Department, the 
United States Postal Service, the Executive Office of the President, and 
certain Independent Agencies for the fiscal year ending September 30, 
2001, and for other purposes, namely:

                   TITLE I--DEPARTMENT OF THE TREASURY

                          Departmental Offices

                          salaries and expenses

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

        Department-Wide Systems and Capital Investments Programs

                      (including transfer of funds)

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

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

                       Office of Inspector General

                          salaries and expenses

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

            Treasury Inspector General for Tax Administration

                          salaries and expenses

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

           Treasury Building and Annex Repair and Restoration

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

                  Expanded Access to Financial Services

                      (including transfer of funds)

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

                  Financial Crimes Enforcement Network

                          salaries and expenses

    For necessary expenses of the Financial Crimes Enforcement Network, 
including hire of passenger motor vehicles; travel expenses of non-
Federal law enforcement personnel to attend meetings concerned with 
financial intelligence activities, law enforcement, and financial 
regulation; not to exceed $14,000 for official reception and 
representation expenses; and for assistance to Federal law enforcement 
agencies, with or without reimbursement, $37,576,000, of which not to 
exceed $2,800,000 shall remain available until September 30, 2003; and 
of which $2,275,000 shall remain available

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

until September 30, 2002: Provided, That funds appropriated in this 
account may be used to procure personal services contracts.

                          Counterterrorism Fund

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

                 Federal Law Enforcement Training Center

                          salaries and expenses

    For necessary expenses of the Federal Law Enforcement Training 
Center, as a bureau of the Department of the Treasury, including 
materials and support costs of Federal law enforcement basic training; 
purchase (not to exceed 52 for police-type use, without regard to the 
general purchase price limitation) and hire of passenger motor vehicles; 
for expenses for student athletic and related activities; uniforms 
without regard to the general purchase price limitation for the current 
fiscal year; the conducting of and participating in firearms matches and 
presentation of awards; for public awareness and enhancing community 
support of law enforcement training; not to exceed $11,500 for official 
reception and representation expenses; room and board for student 
interns; and services as authorized by 5 U.S.C. 3109, $94,483,000, of 
which up to $17,043,000 for materials and support costs of Federal law 
enforcement basic training shall remain available until September 30, 
2003: Provided, That the Center is authorized to accept and use gifts of 
property, both real and personal, and to accept services, for authorized 
purposes, including funding of a gift of intrinsic value which shall be 
awarded annually by the Director of the Center to the outstanding 
student who graduated from a basic training program at the Center during 
the previous fiscal year, which shall be funded only by gifts received 
through the Center's gift authority: Provided further, That 
notwithstanding any other provision of law, students attending training 
at any Federal Law Enforcement Training Center site shall reside in on-
Center or Center-provided housing, insofar as available and in 
accordance with Center policy: Provided further, That funds appropriated 
in this account shall be available, at the discretion of the Director, 
for the following: training United States Postal Service law enforcement 
personnel and Postal police officers; State and local government law 
enforcement training on a space-available basis; training of foreign law 
enforcement officials on a space-available basis with reimbursement of 
actual costs to this appropriation, except that reimbursement may be 
waived by the Secretary for law enforcement

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

training activities in foreign countries undertaken pursuant to section 
801 of the Antiterrorism and Effective Death Penalty Act of 1996, Public 
Law 104-32; training of private sector security officials on a space-
available basis with reimbursement of actual costs to this 
appropriation; and travel expenses of non-Federal personnel to attend 
course development meetings and training sponsored by the Center: 
Provided further, That the Center is authorized to obligate funds in 
anticipation of reimbursements from agencies receiving training 
sponsored by the Federal Law Enforcement Training Center, except that 
total obligations at the end of the fiscal year shall not exceed total 
budgetary resources available at the end of the fiscal year: Provided 
further, That the Federal Law Enforcement Training Center is authorized 
to provide training for the Gang Resistance Education and Training 
program to Federal and non-Federal personnel at any facility in 
partnership with the Bureau of Alcohol, Tobacco and Firearms: Provided 
further, That the Federal Law Enforcement Training Center is authorized 
to provide short-term medical services for students undergoing training 
at the Center.

      acquisition, construction, improvements, and related expenses

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

                       Interagency Law Enforcement

                 interagency crime and drug enforcement

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

                      Financial Management Service

                          salaries and expenses

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

                 Bureau of Alcohol, Tobacco and Firearms

                          salaries and expenses

    For necessary expenses of the Bureau of Alcohol, Tobacco and 
Firearms, including purchase of not to exceed 812 vehicles for police-
type use, of which 650 shall be for replacement only, and hire of 
passenger motor vehicles; hire of aircraft; services of expert witnesses 
at such rates as may be determined by the Director;

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

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

                      United States Customs Service

                          salaries and expenses

    For necessary expenses of the United States Customs Service, 
including purchase and lease of up to 1,050 motor vehicles of which 550 
are for replacement only and of which 1,030 are for police-type use and 
commercial operations; hire of motor vehicles; contracting with 
individuals for personal services abroad; not to exceed $40,000 for 
official reception and representation expenses; and awards of 
compensation to informers, as authorized by any

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

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

                    harbor maintenance fee collection

                      (including transfer of funds)

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

  operation, maintenance and procurement, air and marine interdiction 
                                programs

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

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

                        automation modernization

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

                        Bureau of the Public Debt

                      administering the public debt

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

                        Internal Revenue Service

                 processing, assistance, and management

    For necessary expenses of the Internal Revenue Service for tax 
returns processing; revenue accounting; tax law and account assistance 
to taxpayers by telephone and correspondence; providing an independent 
taxpayer advocate within the Service; programs

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

to match information returns and tax returns; management services; rent 
and utilities; and services as authorized by 5 U.S.C. 3109, at such 
rates as may be determined by the Commissioner, $3,567,001,000, of which 
up to $3,950,000 shall be for the Tax Counseling for the Elderly 
Program, and of which not to exceed $25,000 shall be for official 
reception and representation expenses.

                           tax law enforcement

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

             earned income tax credit compliance initiative

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

                           information systems

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

           administrative provisions--internal revenue service

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

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

1-800 help line service for taxpayers. The Commissioner shall continue 
to make the improvement of the Internal Revenue Service 1-800 help line 
service a priority and allocate resources necessary to increase phone 
lines and staff to improve the Internal Revenue Service 1-800 help line 
service.

                      United States Secret Service

                          salaries and expenses

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

      acquisition, construction, improvements, and related expenses

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

             General Provisions--Department of the Treasury

    Sec. 110. Any obligation or expenditure by the Secretary of the 
Treasury in connection with law enforcement activities of a Federal 
agency or a Department of the Treasury law enforcement organization in 
accordance with 31 U.S.C. 9703(g)(4)(B) from unobligated balances 
remaining in the Fund on September 30, 2001, shall be made in compliance 
with reprogramming guidelines.

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

    Sec. 111. Appropriations to the Department of the Treasury in this 
Act shall be available for uniforms or allowances therefor, as 
authorized by law (5 U.S.C. 5901), including maintenance, repairs, and 
cleaning; purchase of insurance for official motor vehicles operated in 
foreign countries; purchase of motor vehicles without regard to the 
general purchase price limitations for vehicles purchased and used 
overseas for the current fiscal year; entering into contracts with the 
Department of State for the furnishing of health and medical services to 
employees and their dependents serving in foreign countries; and 
services authorized by 5 U.S.C. 3109.
    Sec. 112. The funds provided to the Bureau of Alcohol, Tobacco and 
Firearms for fiscal year 2001 in this Act for the enforcement of the 
Federal Alcohol Administration Act shall be expended in a manner so as 
not to diminish enforcement efforts with respect to section 105 of the 
Federal Alcohol Administration Act.
    Sec. 113. Not to exceed 2 percent of any appropriations in this Act 
made available to the Federal Law Enforcement Training Center, Financial 
Crimes Enforcement Network, Bureau of Alcohol, Tobacco and Firearms, 
United States Customs Service, and United States Secret Service may be 
transferred between such appropriations upon the advance approval of the 
Committees on Appropriations. No transfer may increase or decrease any 
such appropriation by more than 2 percent.
    Sec. 114. Not to exceed 2 percent of any appropriations in this Act 
made available to the Departmental Offices, Office of Inspector General, 
Treasury Inspector General for Tax Administration, Financial Management 
Service, and Bureau of the Public Debt, may be transferred between such 
appropriations upon the advance approval of the Committees on 
Appropriations. No transfer may increase or decrease any such 
appropriation by more than 2 percent.
    Sec. 115. Not to exceed 2 percent of any appropriation made 
available in this Act to the Internal Revenue Service may be transferred 
to the Treasury Inspector General for Tax Administration's appropriation 
upon the advance approval of the Committees on Appropriations. No 
transfer may increase or decrease any such appropriation by more than 2 
percent.
    Sec. 116. Of the funds available for the purchase of law enforcement 
vehicles, no funds may be obligated until the Secretary of the Treasury 
certifies that the purchase by the respective Treasury bureau is 
consistent with Departmental vehicle management principles: Provided, 
That the Secretary may delegate this authority to the Assistant 
Secretary for Management.
    Sec. 117. None of the funds appropriated in this Act or otherwise 
available to the Department of the Treasury or the Bureau of Engraving 
and Printing may be used to redesign the $1 Federal Reserve note.
    Sec. 118. Hereafter, funds made available by this or any other Act 
may be used to pay premium pay for protective services authorized by 
section 3056(a) of title 18, United States Code, without regard to the 
limitation on the rate of pay payable during a pay period contained in 
section 5547(c)(2) of title 5, United States Code, except that such 
premium pay shall not be payable to an employee

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

to the extent that the aggregate of the employee's basic and premium pay 
for the year would otherwise exceed the annual equivalent of that 
limitation. The term premium pay refers to the provisions of law cited 
in the first sentence of section 5547(a) of title 5, United States Code. 
Payment of additional premium pay payable under this section may be made 
in a lump sum on the last payday of the calendar year.
    Sec. 119. The Secretary of the Treasury may transfer funds from 
``Salaries and Expenses'', Financial Management Service, to the Debt 
Services Account as necessary to cover the costs of debt collection: 
Provided, That such amounts shall be reimbursed to such Salaries and 
Expenses account from debt collections received in the Debt Services 
Account.
    Sec. 120. Under the heading of Treasury Franchise Fund in Public Law 
104-208, delete the following: the phrases ``pilot, as authorized by 
section 403 of Public Law 103-356,''; and ``as provided in such 
section''; and the final proviso. After the phrase ``to be available'', 
insert ``without fiscal year limitation,''. After the phrase, 
``established in the Treasury a franchise fund'', insert, ``until 
October 1, 2002''.
    Sec. 121. Notwithstanding any other provision of law, no 
reorganization of the field operations of the United States Customs 
Service Office of Field Operations shall result in a reduction in 
service to the area served by the Port of Racine, Wisconsin, below the 
level of service provided in fiscal year 2000.
    Sec. 122. Notwithstanding any other provision of law, the Bureau of 
Alcohol, Tobacco and Firearms shall reimburse the subcontractor that 
provided services in 1993 and 1994 pursuant to Bureau of Alcohol, 
Tobacco and Firearms contract number TATF 93-3 from amounts appropriated 
for fiscal year 2001 or unobligated balances from prior fiscal years, 
and such reimbursement shall cover the cost of all professional services 
rendered, plus interest calculated in accordance with the Contract 
Dispute Act of 1978 (41 U.S.C. 601 et seq.).
    This title may be cited as the ``Treasury Department Appropriations 
Act, 2001''.

                        TITLE II--POSTAL SERVICE

                   Payment to the Postal Service Fund

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

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

or close small rural and other small post offices in fiscal year 2001.
    This title may be cited as the ``Postal Service Appropriations Act, 
2001''.

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

        Compensation of the President and the White House Office

                      compensation of the president

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

                          salaries and expenses

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

                 Executive Residence at the White House

                           operating expenses

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

                          reimbursable expenses

    For the reimbursable expenses of the Executive Residence at the 
White House, such sums as may be necessary: Provided, That all 
reimbursable operating expenses of the Executive Residence shall be made 
in accordance with the provisions of this paragraph: Provided further, 
That, notwithstanding any other provision of law, such amount for 
reimbursable operating expenses shall be the exclusive authority of the 
Executive Residence to incur obligations and to receive offsetting 
collections, for such expenses: Provided further, That the Executive 
Residence shall require each person sponsoring a reimbursable political 
event to pay in advance an amount equal

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

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

                   white house repair and restoration

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

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

                          salaries and expenses

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

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

                           operating expenses

                      (including transfer of funds)

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

                      Council of Economic Advisers

                          salaries and expenses

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

                      Office of Policy Development

                          salaries and expenses

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

                        National Security Council

                          salaries and expenses

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

                        Office of Administration

                          salaries and expenses

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

                     Office of Management and Budget

                          salaries and expenses

    For necessary expenses of the Office of Management and Budget, 
including hire of passenger motor vehicles and services as authorized by 
5 U.S.C. 3109, $68,786,000, of which not to exceed $5,000,000 shall be 
available to carry out the provisions of chapter 35 of title 44, United 
States Code: Provided, That, as provided in 31 U.S.C. 1301(a), 
appropriations shall be applied only to the objects for which 
appropriations were made except as otherwise provided by law: Provided 
further, That none of the funds appropriated in this Act for the Office 
of Management and Budget may

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

be used for the purpose of reviewing any agricultural marketing orders 
or any activities or regulations under the provisions of the 
Agricultural Marketing Agreement Act of 1937 (7 U.S.C. 601 et seq.): 
Provided further, That none of the funds made available for the Office 
of Management and Budget by this Act may be expended for the altering of 
the transcript of actual testimony of witnesses, except for testimony of 
officials of the Office of Management and Budget, before the Committees 
on Appropriations or the Committees on Veterans' Affairs or their 
subcommittees: Provided further, That the preceding shall not apply to 
printed hearings released by the Committees on Appropriations or the 
Committees on Veterans' Affairs.

                 Office of National Drug Control Policy

                          salaries and expenses

                      (including transfer of funds)

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

                counterdrug technology assessment center

                      (including transfer of funds)

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

                      Federal Drug Control Programs

              high intensity drug trafficking areas program

                      (including transfer of funds)

    For necessary expenses of the Office of National Drug Control 
Policy's High Intensity Drug Trafficking Areas Program, $206,500,000 for 
drug control activities consistent with the approved

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

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

                         special forfeiture fund

                      (including transfer of funds)

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

                     TITLE IV--INDEPENDENT AGENCIES

  Committee for Purchase From People Who are Blind or Severely Disabled

                          salaries and expenses

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

                       Federal Election Commission

                          salaries and expenses

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

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

                    Federal Labor Relations Authority

                          salaries and expenses

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

                     General Services Administration

                        real property activities

                         federal buildings fund

                 limitations on availability of revenue

                      (including transfer of funds)

    For an additional amount to be deposited in, and to be used for the 
purposes of, the Fund established pursuant to section 210(f ) of the 
Federal Property and Administration Act of 1949, as amended (40 U.S.C. 
490(f )), $464,154,000. The revenues and collections deposited into the 
Fund shall be available for necessary expenses of real property 
management and related activities not otherwise provided for, including 
operation, maintenance, and protection of federally-owned and leased 
buildings; rental of buildings in the District of Columbia; restoration 
of leased premises; moving governmental agencies (including space 
adjustments and telecommunications relocation expenses) in connection 
with the assignment, allocation and transfer of space; contractual 
services incident to cleaning or servicing buildings, and moving; repair 
and alteration of federally-owned buildings including grounds, 
approaches and appurtenances; care and safeguarding of sites; 
maintenance, preservation, demolition, and equipment; acquisition of 
buildings and sites by purchase, condemnation, or as otherwise 
authorized by law; acquisition of options to purchase buildings and 
sites; conversion and extension of federally-owned buildings; 
preliminary planning and design of projects by contract or otherwise; 
construction of new buildings (including equipment for such buildings); 
and payment of principal, interest, and any other obligations for public 
buildings acquired by installment purchase and purchase contract; in the 
aggregate amount of $5,971,509,000 of which: (1) $472,176,000 shall 
remain available until expended for construction (including funds for 
sites and expenses and associated design and construction services) of 
additional projects at the following locations: California, Los Angeles, 
United States Courthouse; District

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

of Columbia, Bureau of Alcohol, Tobacco and Firearms Headquarters; 
Florida, Saint Petersburg, Combined Law Enforcement Facility; Maryland, 
Montgomery County, Food and Drug Administration Consolidation; Michigan, 
Sault St. Marie, Border Station; Mississippi, Biloxi-Gulfport, United 
States Courthouse; Montana, Eureka/Roosville, Border Station; Virginia, 
Richmond, United States Courthouse; Washington, Seattle, United States 
Courthouse: Provided, That funding for any project identified above may 
be exceeded to the extent that savings are effected in other such 
projects, but not to exceed 10 percent of the amounts included in an 
approved prospectus, if required, unless advance approval is obtained 
from the Committees on Appropriations of a greater amount: Provided 
further, That all funds for direct construction projects shall expire on 
September 30, 2002, and remain in the Federal Buildings Fund except for 
funds for projects as to which funds for design or other funds have been 
obligated in whole or in part prior to such date; (2) $671,193,000 shall 
remain available until expended for repairs and alterations which 
includes associated design and construction services: Provided further, 
That funds in the Federal Buildings Fund for Repairs and Alterations 
shall, for prospectus projects, be limited to the amount by project, as 
follows, except each project may be increased by an amount not to exceed 
10 percent unless advance approval is obtained from the Committees on 
Appropriations of a greater amount:
    Repairs and alterations:
            Arizona:
                    Phoenix, Federal Building Courthouse, $26,962,000
            California:
                    Santa Ana, Federal Building, $27,864,000
            District of Columbia:
                    Internal Revenue Service Headquarters (Phase 1), 
                $31,780,000
                    Main State Building, (Phase 3), $28,775,000
            Maryland:
                    Woodlawn, SSA National Computer Center, $4,285,000
            Michigan:
                    Detroit, McNamara Federal Building, $26,999,000
            Missouri:
                    Kansas City, Richard Bolling Federal Building, 
                $25,882,000
                    Kansas City, Federal Building, 8930 Ward Parkway, 
                $8,964,000
            Nebraska:
                    Omaha, Zorinsky Federal Building, $45,960,000
            New York:
                    New York City, 40 Foley Square, $5,037,000
            Ohio:
                    Cincinnati, Potter Stewart United States Courthouse, 
                $18,434,000
            Pennsylvania:
                    Pittsburgh, United States Post Office-Courthouse, 
                $54,144,000
            Utah:
                    Salt Lake City, Bennett Federal Building, 
                $21,199,000
            Virginia:
                    Reston, J.W. Powell Federal Building (Phase 2), 
                $22,993,000

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

            Nationwide:
                    Design Program, $21,915,000
                    Energy Program, $5,000,000
                    Glass Fragment Retention Program, $5,000,000
                    Basic Repairs and Alterations, $290,000,000:

Provided further, That additional projects for which prospectuses have 
been fully approved may be funded under this category only if advance 
notice is transmitted to the Committees on Appropriations: Provided 
further, That the amounts provided in this or any prior Act for 
``Repairs and Alterations'' may be used to fund costs associated with 
implementing security improvements to buildings necessary to meet the 
minimum standards for security in accordance with current law and in 
compliance with the reprogramming guidelines of the appropriate 
Committees of the House and Senate: Provided further, That the 
difference between the funds appropriated and expended on any projects 
in this or any prior Act, under the heading ``Repairs and Alterations'', 
may be transferred to Basic Repairs and Alterations or used to fund 
authorized increases in prospectus projects: Provided further, That all 
funds for repairs and alterations prospectus projects shall expire on 
September 30, 2002, and remain in the Federal Buildings Fund except 
funds for projects as to which funds for design or other funds have been 
obligated in whole or in part prior to such date: Provided further, That 
the amount provided in this or any prior Act for Basic Repairs and 
Alterations may be used to pay claims against the Government arising 
from any projects under the heading ``Repairs and Alterations'' or used 
to fund authorized increases in prospectus projects; (3) $185,369,000 
for installment acquisition payments including payments on purchase 
contracts which shall remain available until expended; (4) 
$2,944,905,000 for rental of space which shall remain available until 
expended; and (5) $1,624,771,000 for building operations which shall 
remain available until expended: Provided further, That in addition to 
amounts made available herein, $276,400,000 shall be deposited to the 
Fund, to become available on October 1, 2001, and remain available until 
expended for the following construction projects (including funds for 
sites and expenses and associated design and construction services): 
District of Columbia, United States Courthouse Annex; Florida, Miami, 
United States Courthouse; Massachusetts, Springfield, United States 
Courthouse; New York, Buffalo, United States Courthouse: Provided 
further, That funding for any project identified above may be exceeded 
to the extent that savings are effected in other such projects, but not 
to exceed 10 percent of the amounts included in an approved prospectus, 
if required, unless advance approval is obtained from the Committees on 
Appropriations of a greater amount: Provided further, That funds 
available to the General Services Administration shall not be available 
for expenses of any construction, repair, alteration and acquisition 
project for which a prospectus, if required by the Public Buildings Act 
of 1959, as amended, has not been approved, except that necessary funds 
may be expended for each project for required expenses for the 
development of a proposed prospectus: Provided further, That funds 
available in the Federal Buildings Fund may be expended for emergency 
repairs when advance approval is obtained from the Committees on 
Appropriations: Provided further, That amounts necessary to provide 
reimbursable special services to other agencies under section 210(f )(6) 
of the Federal Property and

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

Administrative Services Act of 1949, as amended (40 U.S.C. 490(f )(6)) 
and amounts to provide such reimbursable fencing, lighting, guard 
booths, and other facilities on private or other property not in 
Government ownership or control as may be appropriate to enable the 
United States Secret Service to perform its protective functions 
pursuant to 18 U.S.C. 3056, shall be available from such revenues and 
collections: Provided further, That revenues and collections and any 
other sums accruing to this Fund during fiscal year 2001, excluding 
reimbursements under section 210(f )(6) of the Federal Property and 
Administrative Services Act of 1949 (40 U.S.C. 490(f )(6)) in excess of 
$5,971,509,000 shall remain in the Fund and shall not be available for 
expenditure except as authorized in appropriations Acts.

                          policy and operations

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

                       office of inspector general

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

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

            allowances and office staff for former presidents

                      (including transfer of funds)

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

                    expenses, presidential transition

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

           General Services Administration--General Provisions

    Sec. 401. The appropriate appropriation or fund available to the 
General Services Administration shall be credited with the cost of 
operation, protection, maintenance, upkeep, repair, and improvement, 
included as part of rentals received from Government corporations 
pursuant to law (40 U.S.C. 129).
    Sec. 402. Funds available to the General Services Administration 
shall be available for the hire of passenger motor vehicles.
    Sec. 403. Funds in the Federal Buildings Fund made available for 
fiscal year 2001 for Federal Buildings Fund activities may be 
transferred between such activities only to the extent necessary to meet 
program requirements: Provided, That any proposed transfers shall be 
approved in advance by the Committees on Appropriations.
    Sec. 404. No funds made available by this Act shall be used to 
transmit a fiscal year 2002 request for United States Courthouse 
construction that: (1) does not meet the design guide standards for 
construction as established and approved by the General Services 
Administration, the Judicial Conference of the United States, and the 
Office of Management and Budget; and (2) does not reflect the priorities 
of the Judicial Conference of the United States as set out in its 
approved 5-year construction plan: Provided, That the fiscal year 2002 
request must be accompanied by a standardized courtroom utilization 
study of each facility to be constructed, replaced, or expanded.
    Sec. 405. None of the funds provided in this Act may be used to 
increase the amount of occupiable square feet, provide cleaning 
services, security enhancements, or any other service usually provided 
through the Federal Buildings Fund, to any agency that does not pay the 
rate per square foot assessment for space and services as determined by 
the General Services Administration in compliance with the Public 
Buildings Amendments Act of 1972 (Public Law 92-313).
    Sec. 406. Funds provided to other Government agencies by the 
Information Technology Fund, General Services Administration, under 40 
U.S.C. 757 and sections 5124(b) and 5128 of Public Law 104-106, 
Information Technology Management Reform Act of 1996, for performance of 
pilot information technology projects which have potential for 
Governmentwide benefits and savings, may be repaid to this Fund from any 
savings actually incurred by these projects or other funding, to the 
extent feasible.

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

    Sec. 407. From funds made available under the heading ``Federal 
Buildings Fund, Limitations on Availability of Revenue'', claims against 
the Government of less than $250,000 arising from direct construction 
projects and acquisition of buildings may be liquidated from savings 
effected in other construction projects with prior notification to the 
Committees on Appropriations.
    Sec. 408. Section 411 of Public Law 106-58 is amended by striking 
``April 30, 2001'' each place it appears and inserting ``April 30, 
2002''.
    Sec. 409. Designation of Ronald N. Davies Federal Building and 
United States Courthouse. (a) The Federal building and courthouse 
located at 102 North 4th Street, Grand Forks, North Dakota, shall be 
known and designated as the ``Ronald N. Davies Federal Building and 
United States Courthouse''.
    (b) Any reference in a law, map, regulation, document, paper, or 
other record of the United States to the Federal building and courthouse 
referred to in section 1 shall be deemed to be a reference to the Ronald 
N. Davies Federal Building and United States Courthouse.
    Sec. 410. From the funds made available under the heading ``Federal 
Buildings Fund Limitations on Revenue'', in addition to amounts provided 
in budget activities above, up to $2,500,000 shall be available for the 
construction of a road and acquisition of the property necessary for 
construction of said road and associated port of entry facilities: 
Provided, That said property shall include a 125 foot wide right-of-way 
beginning approximately 700 feet east of Highway 11 at the northeast 
corner of the existing port facilities and going north approximately 
4,750 feet and approximately 10.22 acres adjacent to the port of entry 
in Township 29 S. Range 8W., Section 14: Provided further, That 
construction of the road shall occur only after this property is deeded 
and conveyed to the United States by and through the General Services 
Administration without reimbursement or cost to the United States at the 
election of its current landholder: Provided further, That 
notwithstanding any other provision of law, and subject to the foregoing 
conditions, the Administrator of General Services shall construct a road 
to the Columbus, New Mexico Port of Entry Station on the property, 
connecting the port with a road to be built by the County of Luna, New 
Mexico to connect to State Highway 11: Provided further, That 
notwithstanding any other provision of law, Luna County shall construct 
the roadway from State Highway 11 to the terminus of the northbound road 
to be constructed by the General Services Administration in time for 
completion of the road to be constructed by the General Services 
Administration in time for completion of the road to be constructed by 
the General Services Administration: Provided further, That upon 
completion of the construction of the road by the General Services 
Administration, and notwithstanding any other provision of law, the 
Administrator of General Services shall convey to the municipality of 
Luna County, New Mexico, without reimbursement, all right, title, and 
interest of the United States to that portion of the property 
constituting the improved road and standard county road right-of-way 
which is not required for the operation of the port of entry: Provided 
further, That the General Services Administration on behalf of the 
United States upon conveyance of the property to the municipality of 
Luna, New Mexico, shall retain the balance of the property located 
adjacent to the port, consisting of approximately 12 acres, to be owned

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

or otherwise managed by the Administrator pursuant to the Federal 
Property and Administrative Services Act of 1949, as amended: Provided 
further, That the General Services Administration is authorized to 
acquire such additional real property and rights in real property as may 
be necessary to construct said road and provide a contiguous site for 
the port of entry: Provided further, That the United States shall incur 
no liability for any environmental laws or conditions existing at the 
property at the time of conveyance to the United States or in connection 
with the construction of the road: Provided further, That Luna County 
and the Village of Columbus shall be responsible for providing adequate 
access and egress to existing properties east of the port of entry: 
Provided further, That the Bureau of Land Management, the International 
Boundary and Water Commission, the Federal Inspection Agencies and the 
Department of State shall take all actions necessary to facilitate the 
construction of the road and expansion of the port facilities.
    Sec. 411. Designation of J. Bratton Davis United States Bankruptcy 
Courthouse. (a) The United States bankruptcy courthouse at 1100 Laurel 
Street in Columbia, South Carolina, shall be known and designated as the 
``J. Bratton Davis United States Bankruptcy Courthouse''.
    (b) Any reference in a law, map, regulation, document, paper, or 
other record of the United States to the United States bankruptcy 
courthouse referred to in subsection (a) shall be deemed to be a 
reference to the ``J. Bratton Davis United States Bankruptcy 
Courthouse''.
    Sec. 412. (a) The United States Courthouse Annex located at 901 19th 
Street in Denver, Colorado is hereby designated as the ``Alfred A. Arraj 
United States Courthouse Annex''.
    (b) Any reference in a law, map, regulation, document, or paper or 
other record of the United States to the Courthouse Annex herein 
referred to in subsection (a) shall be deemed to be a reference to the 
``Alfred A. Arraj United States Courthouse Annex''.
    Sec. 413. Designation of the Paul Coverdell Dormitory. The dormitory 
building currently being constructed on the Core Campus of the Federal 
Law Enforcement Training Center in Glynco, Georgia, shall be known and 
designated as the ``Paul Coverdell Dormitory''.

                     Merit Systems Protection Board

                          salaries and expenses

                      (including transfer of funds)

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

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

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

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

                  Environmental Dispute Resolution Fund

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

              National Archives and Records Administration

                           operating expenses

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

                         repairs and restoration

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

         National Historical Publications and Records Commission

                             grants program

                     (including rescission of funds)

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

                       Office of Government Ethics

                          salaries and expenses

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

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

                     Office of Personnel Management

                          salaries and expenses

                   (including transfer of trust funds)

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

                       office of inspector general

                          salaries and expenses

                   (including transfer of trust funds)

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

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

      government payment for annuitants, employees health benefits

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

       government payment for annuitants, employee life insurance

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

         payment to civil service retirement and disability fund

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

                        Office of Special Counsel

                          salaries and expenses

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

                         United States Tax Court

                          salaries and expenses

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

                       TITLE V--GENERAL PROVISIONS

                                This Act

    Sec. 501. No part of any appropriation contained in this Act shall 
remain available for obligation beyond the current fiscal year unless 
expressly so provided herein.

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

    Sec. 502. The expenditure of any appropriation under this Act for 
any consulting service through procurement contract, pursuant to 5 
U.S.C. 3109, shall be limited to those contracts where such expenditures 
are a matter of public record and available for public inspection, 
except where otherwise provided under existing law, or under existing 
Executive order issued pursuant to existing law.
    Sec. 503. None of the funds made available by this Act shall be 
available for any activity or for paying the salary of any Government 
employee where funding an activity or paying a salary to a Government 
employee would result in a decision, determination, rule, regulation, or 
policy that would prohibit the enforcement of section 307 of the Tariff 
Act of 1930.
    Sec. 504. None of the funds made available by this Act shall be 
available in fiscal year 2001 for the purpose of transferring control 
over the Federal Law Enforcement Training Center located at Glynco, 
Georgia, and Artesia, New Mexico, out of the Department of the Treasury.
    Sec. 505. No part of any appropriation contained in this Act shall 
be available to pay the salary for any person filling a position, other 
than a temporary position, formerly held by an employee who has left to 
enter the Armed Forces of the United States and has satisfactorily 
completed his period of active military or naval service, and has within 
90 days after his release from such service or from hospitalization 
continuing after discharge for a period of not more than 1 year, made 
application for restoration to his former position and has been 
certified by the Office of Personnel Management as still qualified to 
perform the duties of his former position and has not been restored 
thereto.
    Sec. 506. No funds appropriated pursuant to this Act may be expended 
by an entity unless the entity agrees that in expending the assistance 
the entity will comply with sections 2 through 4 of the Act of March 3, 
1933 (41 U.S.C. 10a-10c, popularly known as the ``Buy American Act'').
    Sec. 507. (a) Purchase of American-Made Equipment and Products.--In 
the case of any equipment or products that may be authorized to be 
purchased with financial assistance provided under this Act, it is the 
sense of the Congress that entities receiving such assistance should, in 
expending the assistance, purchase only American-made equipment and 
products.
    (b) Notice to Recipients of Assistance.--In providing financial 
assistance under this Act, the Secretary of the Treasury shall provide 
to each recipient of the assistance a notice describing the statement 
made in subsection (a) by the Congress.
    Sec. 508. If it has been finally determined by a court or Federal 
agency that any person intentionally affixed a label bearing a ``Made in 
America'' inscription, or any inscription with the same meaning, to any 
product sold in or shipped to the United States that is not made in the 
United States, such person shall be ineligible to receive any contract 
or subcontract made with funds provided pursuant to this Act, pursuant 
to the debarment, suspension, and ineligibility procedures described in 
sections 9.400 through 9.409 of title 48, Code of Federal Regulations.
    Sec. 509. No funds appropriated by this Act shall be available to 
pay for an abortion, or the administrative expenses in connection with 
any health plan under the Federal employees health benefit program which 
provides any benefits or coverage for abortions.

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

    Sec. 510. The provision of section 509 shall not apply where the 
life of the mother would be endangered if the fetus were carried to 
term, or the pregnancy is the result of an act of rape or incest.
    Sec. 511. Except as otherwise specifically provided by law, not to 
exceed 50 percent of unobligated balances remaining available at the end 
of fiscal year 2001 from appropriations made available for salaries and 
expenses for fiscal year 2001 in this Act, shall remain available 
through September 30, 2002, for each such account for the purposes 
authorized: Provided, That a request shall be submitted to the 
Committees on Appropriations for approval prior to the expenditure of 
such funds: Provided further, That these requests shall be made in 
compliance with reprogramming guidelines.
    Sec. 512. None of the funds made available in this Act may be used 
by the Executive Office of the President to request from the Federal 
Bureau of Investigation any official background investigation report on 
any individual, except when--
            (1) such individual has given his or her express written 
        consent for such request not more than 6 months prior to the 
        date of such request and during the same presidential 
        administration; or
            (2) such request is required due to extraordinary 
        circumstances involving national security.

    Sec. 513. The cost accounting standards promulgated under section 26 
of the Office of Federal Procurement Policy Act (Public Law 93-400; 41 
U.S.C. 422) shall not apply with respect to a contract under the Federal 
Employees Health Benefits Program established under chapter 89 of title 
5, United States Code.
    Sec. 514. (a) In General.--As soon as practicable after the date of 
the enactment of this Act, the Archivist of the United States shall 
transfer to the Gerald R. Ford Foundation, as trustee, all right, title, 
and interest of the United States in and to the approximately 2.3 acres 
of land located within Grand Rapids, Michigan, and further described in 
subsection (b), such grant to be in trust, with the beneficiary being 
the National Archives and Records Administration, for the purpose of 
supporting the facilities and programs of the Gerald R. Ford Museum in 
Grand Rapids, Michigan, and the Gerald R. Ford Library in Ann Arbor, 
Michigan, in accordance with a trust agreement to be agreed upon by the 
Archivist and the Gerald R. Ford Foundation.
    (b) Land Description.--The land to be transferred pursuant to 
subsection (a) is described as follows:
    The following premises in the City of Grand Rapids, County of Kent, 
State of Michigan, described as:
    That part of Block 2, Converse Plat, and that part of Block 2 of 
J.W. Converse Replatted Addition, and that part of Government Lot 1 of 
Section 25, T7N, R12W, City of Grand Rapids, Kent County, Michigan, 
described as: BEGINNING at the NE corner of Lot 1 of Block 2 of Converse 
Plat; thence East 245.0 feet along the South line of Bridge Street; 
thence South 230.0 feet along a line which is parallel with and 170 feet 
East from the East line of Front Avenue as originally platted; thence 
West 207.5 feet parallel with the South line of Bridge Street; thence 
South along the centerline of vacated Front Avenue 109 feet more or less 
to the extended centerline of vacated Douglas Street; thence West along 
the centerline of vacated Douglas Street 237.5 feet more or less to the 
East line of Scribner Avenue; thence North along

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

the East line of Scribner Avenue 327 feet more or less to a point which 
is 7.0 feet South from the NW corner of Lot 8 of Block 2 of Converse 
Plat; thence Easterly 200 feet more or less to the place of beginning, 
also described as:
    Parcel A--Lots 9 & 10, Block 2 of Converse Plat, being the 
subdivision of Government Lots 1 & 2, Section 25, T7N, R12W; also Lots 
11-24, Block 2 of J.W. Converse Replatted Addition; also part of N \1/2\ 
of Section 25, T7N, R12W, commencing at SE corner Lot 24, Block 2 of 
J.W. Converse Replatted Addition, thence N to NE corner of Lot 9 of 
Converse Plat, thence E 16 feet, thence S to SW corner of Lot 23 of J.W. 
Converse Replatted Addition, thence W 16 feet to beginning.
    Parcel B--Part of Section 25, T7N, R12W, commencing on S line of 
Bridge Street 50 feet E of E line of Front Avenue, thence S 107.85 feet, 
thence 77 feet, thence N to a point on S line of said street which is 80 
feet E of beginning, thence W to beginning.
    Parcel C--Part of Section 25, T7N, R12W, commencing at SE corner 
Bridge Street & Front Avenue, thence E 50 feet, thence S 107.85 feet to 
alley, thence W 50 feet to E line Front Avenue, thence N 106.81 feet to 
beginning.
    Parcel D--Part of Government Lot 1, Section 25, T7N, R12W, 
commencing at a point on S line of Bridge Street (66' wide) 170 feet E 
of E line of Front Avenue (75' wide), thence S 230 feet parallel with 
Front Avenue, thence W 170 feet parallel with Bridge Street to E line of 
Front Avenue, thence N along said line to a point 106.81 feet S of 
intersection of said line with extension of N & S line of Bridge Street, 
thence E 127 feet, thence northerly to a point on S line of Bridge 
Street 130 feet E of E line of Front Avenue, thence E along S line of 
Bridge Street to beginning.
    Parcel E--Lots 1 through 8 of Block 2 of Converse Plat, being the 
subdivision of Government Lots 1 and 2, Section 25, T7N, R12W.
    Also part of N \1/2\ of Section 25, T7N, R12W, commencing at NW 
corner of Lot 9, Block 2 of J.W. Converse Replatted Addition; thence N 
15 feet to SW corner of Lot 8; thence E 200 feet to SE corner Lot 1; 
thence S 15 feet to NE corner of Lot 10; thence W 200 feet to beginning.
    Together with any portion of vacated streets and alleys that have 
become part of the above property.
    (c) Terms and Conditions.--
            (1) Compensation.--The land transferred pursuant to 
        subsection (a) shall be transferred without compensation to the 
        United States.
            (2) Appointment of successor trustee.--In the event that the 
        Gerald R. Ford Foundation for any reason is unable or unwilling 
        to continue to serve as trustee, the Archivist of the United 
        States is authorized to appoint a successor trustee.
            (3) Reversionary interest.--If the Archivist of the United 
        States determines that the Gerald R. Ford Foundation (or a 
        successor trustee appointed under paragraph (2)) has breached 
        its fiduciary duty under the trust agreement entered into 
        pursuant to this section, the land transferred pursuant to 
        subsection (a) shall revert to the United States under the 
        administrative jurisdiction of the Archivist.

    Sec. 515. (a) In General.--The Director of the Office of Management 
and Budget shall, by not later than September 30,

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

2001, and with public and Federal agency involvement, issue guidelines 
under sections 3504(d)(1) and 3516 of title 44, United States Code, that 
provide policy and procedural guidance to Federal agencies for ensuring 
and maximizing the quality, objectivity, utility, and integrity of 
information (including statistical information) disseminated by Federal 
agencies in fulfillment of the purposes and provisions of chapter 35 of 
title 44, United States Code, commonly referred to as the Paperwork 
Reduction Act.
    (b) Content of Guidelines.--The guidelines under subsection (a) 
shall--
            (1) apply to the sharing by Federal agencies of, and access 
        to, information disseminated by Federal agencies; and
            (2) require that each Federal agency to which the guidelines 
        apply--
                    (A) issue guidelines ensuring and maximizing the 
                quality, objectivity, utility, and integrity of 
                information (including statistical information) 
                disseminated by the agency, by not later than 1 year 
                after the date of issuance of the guidelines under 
                subsection (a);
                    (B) establish administrative mechanisms allowing 
                affected persons to seek and obtain correction of 
                information maintained and disseminated by the agency 
                that does not comply with the guidelines issued under 
                subsection (a); and
                    (C) report periodically to the Director--
                          (i) the number and nature of complaints 
                      received by the agency regarding the accuracy of 
                      information disseminated by the agency; and
                          (ii) how such complaints were handled by the 
                      agency.

    Sec. 516. For the purpose of resolving litigation and implementing 
any settlement agreements regarding the nonforeign area cost-of-living 
allowance program, the Office of Personnel Management may accept and 
utilize (without regard to any restriction on unanticipated travel 
expenses imposed in an Appropriations Act) funds made available to the 
Office pursuant to court approval.
    Sec. 517. None of the funds appropriated by this Act shall be used 
to propose or issue rules, regulations, decrees, or orders for the 
purpose of implementation, or in preparation for implementation, of the 
Kyoto Protocol, which was adopted on December 11, 1997, in Kyoto, Japan, 
at the Third Conference of the Parties to the United Nations Framework 
Convention on Climate Change, which has not been submitted to the Senate 
for advice and consent to ratification pursuant to article II, section 
2, clause 2, of the United States Constitution, and which has not 
entered into force pursuant to article 25 of the Protocol.
    Sec. 518. Not later than July 1, 2001, the Director of the Office of 
Management and Budget shall submit a report to the Committee on 
Appropriations and the Committee on Governmental Affairs of the Senate 
and the Committee on Appropriations and the Committee on Government 
Reform of the House of Representatives that: (1) evaluates, for each 
agency, the extent to which implementation of chapter 35 of title 31, 
United States Code, as amended by the Paperwork Reduction Act of 1995 
(Public Law 104-13), has reduced burden imposed by rules issued by the 
agency, including the burden imposed by each major rule issued by the 
agency; (2) includes a determination, based on such evaluation,

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

of the need for additional procedures to ensure achievement of the 
purposes of that chapter, as set forth in section 3501 of title 31, 
United States Code, and evaluates the burden imposed by each major rule 
that imposes more than 10,000,000 hours of burden, and identifies 
specific reductions expected to be achieved in each of fiscal years 2001 
and 2002 in the burden imposed by all rules issued by each agency that 
issued such a major rule.

                      TITLE VI--GENERAL PROVISIONS

                 Departments, Agencies, and Corporations

    Sec. 601. Funds appropriated in this or any other Act may be used to 
pay travel to the United States for the immediate family of employees 
serving abroad in cases of death or life threatening illness of said 
employee.
    Sec. 602. No department, agency, or instrumentality of the United 
States receiving appropriated funds under this or any other Act for 
fiscal year 2001 shall obligate or expend any such funds, unless such 
department, agency, or instrumentality has in place, and will continue 
to administer in good faith, a written policy designed to ensure that 
all of its workplaces are free from the illegal use, possession, or 
distribution of controlled substances (as defined in the Controlled 
Substances Act) by the officers and employees of such department, 
agency, or instrumentality.
    Sec. 603. Unless otherwise specifically provided, the maximum amount 
allowable during the current fiscal year in accordance with section 16 
of the Act of August 2, 1946 (60 Stat. 810), for the purchase of any 
passenger motor vehicle (exclusive of buses, ambulances, law 
enforcement, and undercover surveillance vehicles), is hereby fixed at 
$8,100 except station wagons for which the maximum shall be $9,100: 
Provided, That these limits may be exceeded by not to exceed $3,700 for 
police-type vehicles, and by not to exceed $4,000 for special heavy-duty 
vehicles: Provided further, That the limits set forth in this section 
may not be exceeded by more than 5 percent for electric or hybrid 
vehicles purchased for demonstration under the provisions of the 
Electric and Hybrid Vehicle Research, Development, and Demonstration Act 
of 1976: Provided further, That the limits set forth in this section may 
be exceeded by the incremental cost of clean alternative fuels vehicles 
acquired pursuant to Public Law 101-549 over the cost of comparable 
conventionally fueled vehicles.
    Sec. 604. Appropriations of the executive departments and 
independent establishments for the current fiscal year available for 
expenses of travel, or for the expenses of the activity concerned, are 
hereby made available for quarters allowances and cost-of-living 
allowances, in accordance with 5 U.S.C. 5922-5924.
    Sec. 605. Unless otherwise specified during the current fiscal year, 
no part of any appropriation contained in this or any other Act shall be 
used to pay the compensation of any officer or employee of the 
Government of the United States (including any agency the majority of 
the stock of which is owned by the Government of the United States) 
whose post of duty is in the continental United States unless such 
person: (1) is a citizen of the United States; (2) is a person in the 
service of the United States on the date of the enactment of this Act 
who, being eligible for citizenship, has filed a declaration of 
intention to become a citizen of

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

the United States prior to such date and is actually residing in the 
United States; (3) is a person who owes allegiance to the United States; 
(4) is an alien from Cuba, Poland, South Vietnam, the countries of the 
former Soviet Union, or the Baltic countries lawfully admitted to the 
United States for permanent residence; (5) is a South Vietnamese, 
Cambodian, or Laotian refugee paroled in the United States after January 
1, 1975; or (6) is a national of the People's Republic of China who 
qualifies for adjustment of status pursuant to the Chinese Student 
Protection Act of 1992: Provided, That for the purpose of this section, 
an affidavit signed by any such person shall be considered prima facie 
evidence that the requirements of this section with respect to his or 
her status have been complied with: Provided further, That any person 
making a false affidavit shall be guilty of a felony, and, upon 
conviction, shall be fined no more than $4,000 or imprisoned for not 
more than 1 year, or both: Provided further, That the above penal clause 
shall be in addition to, and not in substitution for, any other 
provisions of existing law: Provided further, That any payment made to 
any officer or employee contrary to the provisions of this section shall 
be recoverable in action by the Federal Government. This section shall 
not apply to citizens of Ireland, Israel, or the Republic of the 
Philippines, or to nationals of those countries allied with the United 
States in a current defense effort, or to international broadcasters 
employed by the United States Information Agency, or to temporary 
employment of translators, or to temporary employment in the field 
service (not to exceed 60 days) as a result of emergencies.
    Sec. 606. Appropriations available to any department or agency 
during the current fiscal year for necessary expenses, including 
maintenance or operating expenses, shall also be available for payment 
to the General Services Administration for charges for space and 
services and those expenses of renovation and alteration of buildings 
and facilities which constitute public improvements performed in 
accordance with the Public Buildings Act of 1959 (73 Stat. 749), the 
Public Buildings Amendments of 1972 (87 Stat. 216), or other applicable 
law.
    Sec. 607. In addition to funds provided in this or any other Act, 
all Federal agencies are authorized to receive and use funds resulting 
from the sale of materials, including Federal records disposed of 
pursuant to a records schedule recovered through recycling or waste 
prevention programs. Such funds shall be available until expended for 
the following purposes:
            (1) Acquisition, waste reduction and prevention, and 
        recycling programs as described in Executive Order No. 13101 
        (September 14, 1998), including any such programs adopted prior 
        to the effective date of the Executive order.
            (2) Other Federal agency environmental management programs, 
        including, but not limited to, the development and 
        implementation of hazardous waste management and pollution 
        prevention programs.
            (3) Other employee programs as authorized by law or as 
        deemed appropriate by the head of the Federal agency.

    Sec. 608. Funds made available by this or any other Act for 
administrative expenses in the current fiscal year of the corporations 
and agencies subject to chapter 91 of title 31, United States Code, 
shall be available, in addition to objects for which such funds are 
otherwise available, for rent in the District of Columbia;

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

services in accordance with 5 U.S.C. 3109; and the objects specified 
under this head, all the provisions of which shall be applicable to the 
expenditure of such funds unless otherwise specified in the Act by which 
they are made available: Provided, That in the event any functions 
budgeted as administrative expenses are subsequently transferred to or 
paid from other funds, the limitations on administrative expenses shall 
be correspondingly reduced.
    Sec. 609. No part of any appropriation for the current fiscal year 
contained in this or any other Act shall be paid to any person for the 
filling of any position for which he or she has been nominated after the 
Senate has voted not to approve the nomination of said person.
    Sec. 610. No part of any appropriation contained in this or any 
other Act shall be available for interagency financing of boards (except 
Federal Executive Boards), commissions, councils, committees, or similar 
groups (whether or not they are interagency entities) which do not have 
a prior and specific statutory approval to receive financial support 
from more than one agency or instrumentality.
    Sec. 611. Funds made available by this or any other Act to the 
Postal Service Fund (39 U.S.C. 2003) shall be available for employment 
of guards for all buildings and areas owned or occupied by the Postal 
Service and under the charge and control of the Postal Service, and such 
guards shall have, with respect to such property, the powers of special 
policemen provided by the first section of the Act of June 1, 1948, as 
amended (62 Stat. 281; 40 U.S.C. 318), and, as to property owned or 
occupied by the Postal Service, the Postmaster General may take the same 
actions as the Administrator of General Services may take under the 
provisions of sections 2 and 3 of the Act of June 1, 1948, as amended 
(62 Stat. 281; 40 U.S.C. 318a and 318b), attaching thereto penal 
consequences under the authority and within the limits provided in 
section 4 of the Act of June 1, 1948, as amended (62 Stat. 281; 40 
U.S.C. 318c).
    Sec. 612. None of the funds made available pursuant to the 
provisions of this Act shall be used to implement, administer, or 
enforce any regulation which has been disapproved pursuant to a 
resolution of disapproval duly adopted in accordance with the applicable 
law of the United States.
    Sec. 613. (a) Notwithstanding any other provision of law, and except 
as otherwise provided in this section, no part of any of the funds 
appropriated for fiscal year 2001, by this or any other Act, may be used 
to pay any prevailing rate employee described in section 5342(a)(2)(A) 
of title 5, United States Code--
            (1) during the period from the date of expiration of the 
        limitation imposed by section 613 of the Treasury and General 
        Government Appropriations Act, 2000, until the normal effective 
        date of the applicable wage survey adjustment that is to take 
        effect in fiscal year 2001, in an amount that exceeds the rate 
        payable for the applicable grade and step of the applicable wage 
        schedule in accordance with such section 613; and
            (2) during the period consisting of the remainder of fiscal 
        year 2001, in an amount that exceeds, as a result of a wage 
        survey adjustment, the rate payable under paragraph (1) by more 
        than the sum of--
                    (A) the percentage adjustment taking effect in 
                fiscal year 2001 under section 5303 of title 5, United 
                States

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

                Code, in the rates of pay under the General Schedule; 
                and
                    (B) the difference between the overall average 
                percentage of the locality-based comparability payments 
                taking effect in fiscal year 2001 under section 5304 of 
                such title (whether by adjustment or otherwise), and the 
                overall average percentage of such payments which was 
                effective in fiscal year 2000 under such section.

    (b) Notwithstanding any other provision of law, no prevailing rate 
employee described in subparagraph (B) or (C) of section 5342(a)(2) of 
title 5, United States Code, and no employee covered by section 5348 of 
such title, may be paid during the periods for which subsection (a) is 
in effect at a rate that exceeds the rates that would be payable under 
subsection (a) were subsection (a) applicable to such employee.
    (c) For the purposes of this section, the rates payable to an 
employee who is covered by this section and who is paid from a schedule 
not in existence on September 30, 2000, shall be determined under 
regulations prescribed by the Office of Personnel Management.
    (d) Notwithstanding any other provision of law, rates of premium pay 
for employees subject to this section may not be changed from the rates 
in effect on September 30, 2000, except to the extent determined by the 
Office of Personnel Management to be consistent with the purpose of this 
section.
    (e) This section shall apply with respect to pay for service 
performed after September 30, 2000.
    (f ) For the purpose of administering any provision of law 
(including any rule or regulation that provides premium pay, retirement, 
life insurance, or any other employee benefit) that requires any 
deduction or contribution, or that imposes any requirement or limitation 
on the basis of a rate of salary or basic pay, the rate of salary or 
basic pay payable after the application of this section shall be treated 
as the rate of salary or basic pay.
    (g) Nothing in this section shall be considered to permit or require 
the payment to any employee covered by this section at a rate in excess 
of the rate that would be payable were this section not in effect.
    (h) The Office of Personnel Management may provide for exceptions to 
the limitations imposed by this section if the Office determines that 
such exceptions are necessary to ensure the recruitment or retention of 
qualified employees.
    Sec. 614. During the period in which the head of any department or 
agency, or any other officer or civilian employee of the Government 
appointed by the President of the United States, holds office, no funds 
may be obligated or expended in excess of $5,000 to furnish or 
redecorate the office of such department head, agency head, officer, or 
employee, or to purchase furniture or make improvements for any such 
office, unless advance notice of such furnishing or redecoration is 
expressly approved by the Committees on Appropriations. For the purposes 
of this section, the word ``office'' shall include the entire suite of 
offices assigned to the individual, as well as any other space used 
primarily by the individual or the use of which is directly controlled 
by the individual.
    Sec. 615. Notwithstanding any other provision of law, no executive 
branch agency shall purchase, construct, and/or lease any additional 
facilities, except within or contiguous to existing locations,

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

to be used for the purpose of conducting Federal law enforcement 
training without the advance approval of the Committees on 
Appropriations, except that the Federal Law Enforcement Training Center 
is authorized to obtain the temporary use of additional facilities by 
lease, contract, or other agreement for training which cannot be 
accommodated in existing Center facilities.
    Sec. 616. Notwithstanding section 1346 of title 31, United States 
Code, or section 610 of this Act, funds made available for fiscal year 
2001 by this or any other Act shall be available for the interagency 
funding of national security and emergency preparedness 
telecommunications initiatives which benefit multiple Federal 
departments, agencies, or entities, as provided by Executive Order No. 
12472 (April 3, 1984).
    Sec. 617. (a) None of the funds appropriated by this or any other 
Act may be obligated or expended by any Federal department, agency, or 
other instrumentality for the salaries or expenses of any employee 
appointed to a position of a confidential or policy-determining 
character excepted from the competitive service pursuant to section 3302 
of title 5, United States Code, without a certification to the Office of 
Personnel Management from the head of the Federal department, agency, or 
other instrumentality employing the Schedule C appointee that the 
Schedule C position was not created solely or primarily in order to 
detail the employee to the White House.
    (b) The provisions of this section shall not apply to Federal 
employees or members of the armed services detailed to or from--
            (1) the Central Intelligence Agency;
            (2) the National Security Agency;
            (3) the Defense Intelligence Agency;
            (4) the offices within the Department of Defense for the 
        collection of specialized national foreign intelligence through 
        reconnaissance programs;
            (5) the Bureau of Intelligence and Research of the 
        Department of State;
            (6) any agency, office, or unit of the Army, Navy, Air 
        Force, and Marine Corps, the Federal Bureau of Investigation and 
        the Drug Enforcement Administration of the Department of 
        Justice, the Department of Transportation, the Department of the 
        Treasury, and the Department of Energy performing intelligence 
        functions; and
            (7) the Director of Central Intelligence.

    Sec. 618. No department, agency, or instrumentality of the United 
States receiving appropriated funds under this or any other Act for 
fiscal year 2001 shall obligate or expend any such funds, unless such 
department, agency, or instrumentality has in place, and will continue 
to administer in good faith, a written policy designed to ensure that 
all of its workplaces are free from discrimination and sexual harassment 
and that all of its workplaces are not in violation of title VII of the 
Civil Rights Act of 1964, as amended, the Age Discrimination in 
Employment Act of 1967, and the Rehabilitation Act of 1973.
    Sec. 619. None of the funds made available in this Act for the 
United States Customs Service may be used to allow the importation into 
the United States of any good, ware, article, or merchandise mined, 
produced, or manufactured by forced or indentured child labor, as 
determined pursuant to section 307 of the Tariff Act of 1930 (19 U.S.C. 
1307).

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

    Sec. 620. No part of any appropriation contained in this or any 
other Act shall be available for the payment of the salary of any 
officer or employee of the Federal Government, who--
            (1) prohibits or prevents, or attempts or threatens to 
        prohibit or prevent, any other officer or employee of the 
        Federal Government from having any direct oral or written 
        communication or contact with any Member, committee, or 
        subcommittee of the Congress in connection with any matter 
        pertaining to the employment of such other officer or employee 
        or pertaining to the department or agency of such other officer 
        or employee in any way, irrespective of whether such 
        communication or contact is at the initiative of such other 
        officer or employee or in response to the request or inquiry of 
        such Member, committee, or subcommittee; or
            (2) removes, suspends from duty without pay, demotes, 
        reduces in rank, seniority, status, pay, or performance of 
        efficiency rating, denies promotion to, relocates, reassigns, 
        transfers, disciplines, or discriminates in regard to any 
        employment right, entitlement, or benefit, or any term or 
        condition of employment of, any other officer or employee of the 
        Federal Government, or attempts or threatens to commit any of 
        the foregoing actions with respect to such other officer or 
        employee, by reason of any communication or contact of such 
        other officer or employee with any Member, committee, or 
        subcommittee of the Congress as described in paragraph (1).

    Sec. 621. (a) None of the funds made available in this or any other 
Act may be obligated or expended for any employee training that--
            (1) does not meet identified needs for knowledge, skills, 
        and abilities bearing directly upon the performance of official 
        duties;
            (2) contains elements likely to induce high levels of 
        emotional response or psychological stress in some participants;
            (3) does not require prior employee notification of the 
        content and methods to be used in the training and written end 
        of course evaluation;
            (4) contains any methods or content associated with 
        religious or quasi-religious belief systems or ``new age'' 
        belief systems as defined in Equal Employment Opportunity 
        Commission Notice N-915.022, dated September 2, 1988; or
            (5) is offensive to, or designed to change, participants' 
        personal values or lifestyle outside the workplace.

    (b) Nothing in this section shall prohibit, restrict, or otherwise 
preclude an agency from conducting training bearing directly upon the 
performance of official duties.
    Sec. 622. No funds appropriated in this or any other Act may be used 
to implement or enforce the agreements in Standard Forms 312 and 4414 of 
the Government or any other nondisclosure policy, form, or agreement if 
such policy, form, or agreement does not contain the following 
provisions: ``These restrictions are consistent with and do not 
supersede, conflict with, or otherwise alter the employee obligations, 
rights, or liabilities created by Executive Order No. 12958; section 
7211 of title 5, U.S.C. (governing disclosures to Congress); section 
1034 of title 10, United States Code, as amended by the Military 
Whistleblower Protection Act (governing disclosure to Congress by 
members of the military); section

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

2302(b)(8) of title 5, United States Code, as amended by the 
Whistleblower Protection Act (governing disclosures of illegality, 
waste, fraud, abuse or public health or safety threats); the 
Intelligence Identities Protection Act of 1982 (50 U.S.C. 421 et seq.) 
(governing disclosures that could expose confidential Government 
agents); and the statutes which protect against disclosure that may 
compromise the national security, including sections 641, 793, 794, 798, 
and 952 of title 18, United States Code, and section 4(b) of the 
Subversive Activities Act of 1950 (50 U.S.C. 783(b)). The definitions, 
requirements, obligations, rights, sanctions, and liabilities created by 
said Executive order and listed statutes are incorporated into this 
agreement and are controlling.'': Provided, That notwithstanding the 
preceding paragraph, a nondisclosure policy form or agreement that is to 
be executed by a person connected with the conduct of an intelligence or 
intelligence-related activity, other than an employee or officer of the 
United States Government, may contain provisions appropriate to the 
particular activity for which such document is to be used. Such form or 
agreement shall, at a minimum, require that the person will not disclose 
any classified information received in the course of such activity 
unless specifically authorized to do so by the United States Government. 
Such nondisclosure forms shall also make it clear that they do not bar 
disclosures to Congress or to an authorized official of an executive 
agency or the Department of Justice that are essential to reporting a 
substantial violation of law.
    Sec. 623. No part of any funds appropriated in this or any other Act 
shall be used by an agency of the executive branch, other than for 
normal and recognized executive-legislative relationships, for publicity 
or propaganda purposes, and for the preparation, distribution or use of 
any kit, pamphlet, booklet, publication, radio, television or film 
presentation designed to support or defeat legislation pending before 
the Congress, except in presentation to the Congress itself.
    Sec. 624. (a) In General.--For calendar year 2002 and each year 
thereafter, the Director of the Office of Management and Budget shall 
prepare and submit to Congress, with the budget submitted under section 
1105 of title 31, United States Code, an accounting statement and 
associated report containing--
            (1) an estimate of the total annual costs and benefits 
        (including quantifiable and nonquantifiable effects) of Federal 
        rules and paperwork, to the extent feasible--
                    (A) in the aggregate;
                    (B) by agency and agency program; and
                    (C) by major rule;
            (2) an analysis of impacts of Federal regulation on State, 
        local, and tribal government, small business, wages, and 
        economic growth; and
            (3) recommendations for reform.

    (b) Notice.--The Director of the Office of Management and Budget 
shall provide public notice and an opportunity to comment on the 
statement and report under subsection (a) before the statement and 
report are submitted to Congress.
    (c) Guidelines.--To implement this section, the Director of the 
Office of Management and Budget shall issue guidelines to agencies to 
standardize--
            (1) measures of costs and benefits; and
            (2) the format of accounting statements.

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

    (d) Peer Review.--The Director of the Office of Management and 
Budget shall provide for independent and external peer review of the 
guidelines and each accounting statement and associated report under 
this section. Such peer review shall not be subject to the Federal 
Advisory Committee Act (5 U.S.C. App.).
    Sec. 625. None of the funds appropriated by this or any other Act 
may be used by an agency to provide a Federal employee's home address to 
any labor organization except when the employee has authorized such 
disclosure or when such disclosure has been ordered by a court of 
competent jurisdiction.
    Sec. 626. Hereafter, the Secretary of the Treasury is authorized to 
establish scientific certification standards for explosives detection 
canines, and shall provide, on a reimbursable basis, for the 
certification of explosives detection canines employed by Federal 
agencies, or other agencies providing explosives detection services at 
airports in the United States.
    Sec. 627. None of the funds made available in this Act or any other 
Act may be used to provide any non-public information such as mailing or 
telephone lists to any person or any organization outside of the Federal 
Government without the approval of the Committees on Appropriations.
    Sec. 628. No part of any appropriation contained in this or any 
other Act shall be used for publicity or propaganda purposes within the 
United States not heretofore authorized by the Congress.
    Sec. 629. (a) In this section the term ``agency''--
            (1) means an Executive agency as defined under section 105 
        of title 5, United States Code;
            (2) includes a military department as defined under section 
        102 of such title, the Postal Service, and the Postal Rate 
        Commission; and
            (3) shall not include the General Accounting Office.

    (b) Unless authorized in accordance with law or regulations to use 
such time for other purposes, an employee of an agency shall use 
official time in an honest effort to perform official duties. An 
employee not under a leave system, including a Presidential appointee 
exempted under section 6301(2) of title 5, United States Code, has an 
obligation to expend an honest effort and a reasonable proportion of 
such employee's time in the performance of official duties.
    Sec. 630. (a) None of the funds appropriated by this Act may be used 
to enter into or renew a contract which includes a provision providing 
prescription drug coverage, except where the contract also includes a 
provision for contraceptive coverage.
    (b) Nothing in this section shall apply to a contract with--
            (1) any of the following religious plans:
                    (A) Personal Care's HMO;
                    (B) Care Choices;
                    (C) OSF Health Plans, Inc.; and
            (2) any existing or future plan, if the carrier for the plan 
        objects to such coverage on the basis of religious beliefs.

    (c) In implementing this section, any plan that enters into or 
renews a contract under this section may not subject any individual to 
discrimination on the basis that the individual refuses to prescribe or 
otherwise provide for contraceptives because such activities would be 
contrary to the individual's religious beliefs or moral convictions.

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

    (d) Nothing in this section shall be construed to require coverage 
of abortion or abortion-related services.
    Sec. 631. Notwithstanding 31 U.S.C. 1346 and section 610 of this 
Act, funds made available for fiscal year 2001 by this or any other Act 
to any department or agency, which is a member of the Joint Financial 
Management Improvement Program (JFMIP), shall be available to finance an 
appropriate share of JFMIP administrative costs, as determined by the 
JFMIP, but not to exceed a total of $800,000 including the salary of the 
Executive Director and staff support.
    Sec. 632. Notwithstanding 31 U.S.C. 1346 and section 610 of this 
Act, the head of each Executive department and agency is hereby 
authorized to transfer to the ``Policy and Operations'' account, General 
Services Administration, with the approval of the Director of the Office 
of Management and Budget, funds made available for fiscal year 2001 by 
this or any other Act, including rebates from charge card and other 
contracts. These funds shall be administered by the Administrator of 
General Services to support Government-wide financial, information 
technology, procurement, and other management innovations, initiatives, 
and activities, as approved by the Director of the Office of Management 
and Budget, in consultation with the appropriate interagency groups 
designated by the Director (including the Chief Financial Officers 
Council and the Joint Financial Management Improvement Program for 
financial management initiatives, the Chief Information Officers Council 
for information technology initiatives, and the Procurement Executives 
Council for procurement initiatives). The total funds transferred shall 
not exceed $17,000,000. Such transfers may only be made 15 days 
following notification of the Committees on Appropriations by the 
Director of the Office of Management and Budget.
    Sec. 633. (a) In General.--In accordance with regulations 
promulgated by the Office of Personnel Management, an Executive agency 
which provides or proposes to provide child care services for Federal 
employees may use appropriated funds (otherwise available to such agency 
for salaries and expenses) to provide child care, in a Federal or leased 
facility, or through contract, for civilian employees of such agency.
    (b) Affordability.--Amounts so provided with respect to any such 
facility or contractor shall be applied to improve the affordability of 
child care for lower income Federal employees using or seeking to use 
the child care services offered by such facility or contractor.
    (c) Definition.--For purposes of this section, the term ``Executive 
agency'' has the meaning given such term by section 105 of title 5, 
United States Code, but does not include the General Accounting Office.
    (d) Notification.--None of the funds made available in this or any 
other Act may be used to implement the provisions of this section absent 
advance notification to the Committees on Appropriations.
    Sec. 634. Notwithstanding any other provision of law, a woman may 
breastfeed her child at any location in a Federal building or on Federal 
property, if the woman and her child are otherwise authorized to be 
present at the location.
    Sec. 635. Nothwithstanding section 1346 of title 31, United States 
Code, or section 610 of this Act, funds made available for fiscal year 
2001 by this or any other Act shall be available for

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

the interagency funding of specific projects, workshops, studies, and 
similar efforts to carry out the purposes of the National Science and 
Technology Council (authorized by Executive Order No. 12881), which 
benefit multiple Federal departments, agencies, or entities: Provided, 
That the Office of Management and Budget shall provide a report 
describing the budget of and resources connected with the National 
Science and Technology Council to the Committees on Appropriations, the 
House Committee on Science; and the Senate Committee on Commerce, 
Science, and Transportation 90 days after enactment of this Act.
    Sec. 636. Retirement Provisions Relating to Certain Members of the 
Police Force of the Metropolitan Washington Airports Authority.--(a) 
Qualified MWAA Police Officer Defined.--For purposes of this section, 
the term ``qualified MWAA police officer'' means any individual who, as 
of the date of the enactment of this Act--
            (1) is employed as a member of the police force of the 
        Metropolitan Washington Airports Authority (hereafter in this 
        section referred to as an ``MWAA police officer''); and
            (2) is subject to the Civil Service Retirement System or the 
        Federal Employees' Retirement System by virtue of section 
        49107(b) of title 49, United States Code.

    (b) Eligibility To Be Treated as a Law Enforcement Officer for 
Retirement Purposes.--
            (1) In general.--Any qualified MWAA police officer may, by 
        written election submitted in accordance with applicable 
        requirements under subsection (c), elect to be treated as a law 
        enforcement officer (within the meaning of section 8331 or 8401 
        of title 5, United States Code, as applicable), and to have all 
        prior service described in paragraph (2) similarly treated.
            (2) Prior service described.--The service described in this 
        paragraph is all service which an individual performed, prior to 
        the effective date of such individual's election under this 
        section, as--
                    (A) an MWAA police officer; or
                    (B) a member of the police force of the Federal 
                Aviation Administration (hereafter in this section 
                referred to as an ``FAA police officer'').

    (c) Regulations.--The Office of Personnel Management shall prescribe 
any regulations necessary to carry out this section, including 
provisions relating to the time, form, and manner in which any election 
under this section shall be made. Such an election shall not be 
effective unless--
            (1) it is made before the employee separates from service 
        with the Metropolitan Washington Airports Authority, but in no 
        event later than 1 year after the regulations under this 
        subsection take effect; and
            (2) it is accompanied by payment of an amount equal to, with 
        respect to all prior service of such employee which is described 
        in subsection (b)(2)--
                    (A) the employee deductions that would have been 
                required for such service under chapter 83 or 84 of 
                title 5, U.S.C. (as the case may be) if such election 
                had then been in effect, minus

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

                    (B) the total employee deductions and contributions 
                under such chapter 83 and 84 (as applicable) that were 
                actually made for such service,
        taking into account only amounts required to be credited to the 
        Civil Service Retirement and Disability Fund. Any amount under 
        paragraph (2) shall be computed with interest, in accordance 
        with section 8334(e) of such title 5.

    (d) Government Contributions.--Whenever a payment under subsection 
(c)(2) is made by an individual with respect to such individual's prior 
service (as described in subsection (b)(2)), the Metropolitan Washington 
Airports Authority shall pay into the Civil Service Retirement and 
Disability Fund any additional contributions for which it would have 
been liable, with respect to such service, if such individual's election 
under this section had then been in effect (and, to the extent of any 
prior FAA police officer service, as if it had then been the employing 
agency). Any amount under this subsection shall be computed with 
interest, in accordance with section 8334(e) of title 5, United States 
Code.
    (e) Certifications.--The Office of Personnel Management shall 
accept, for the purpose of this section, the certification of--
            (1) the Metropolitan Washington Airports Authority (or its 
        designee) concerning any service performed by an individual as 
        an MWAA police officer; and
            (2) the Federal Aviation Administration (or its designee) 
        concerning any service performed by an individual as an FAA 
        police officer.

    (f ) Reimbursement To Compensate for Unfunded Liability.--
            (1) In general.--The Metropolitan Washington Airports 
        Authority shall pay into the Civil Service Retirement and 
        Disability Fund an amount (as determined by the Director of the 
        Office of Personnel Management) equal to the amount necessary to 
        reimburse the Fund for any estimated increase in the unfunded 
        liability of the Fund (to the extent the Civil Service 
        Retirement System is involved), and for any estimated increase 
        in the supplemental liability of the Fund (to the extent the 
        Federal Employees' Retirement System is involved), resulting 
        from the enactment of this section.
            (2) Payment method.--The Metropolitan Washington Airports 
        Authority shall pay the amount so determined in five equal 
        annual installments, with interest (which shall be computed at 
        the rate used in the most recent valuation of the Federal 
        Employees' Retirement System).

    Sec. 637. (a) For purposes of this section--
            (1) the term ``comparability payment'' refers to a locality-
        based comparability payment under section 5304 of title 5, 
        United States Code;
            (2) the term ``President's pay agent'' refers to the pay 
        agent described in section 5302(4) of such title; and
            (3) the term ``pay locality'' has the meaning given such 
        term by section 5302(5) of such title.

    (b) Notwithstanding any provision of section 5304 of title 5, United 
States Code, for purposes of determining appropriate pay localities and 
making comparability payment recommendations, the President's pay agent 
may, in accordance with succeeding provisions of this section, make 
comparisons of General Schedule pay and

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

non-Federal pay within any of the metropolitan statistical areas 
described in subsection (d)(3), using--
            (1) data from surveys of the Bureau of Labor Statistics;
            (2) salary data sets obtained under subsection (c); or
            (3) any combination thereof.

    (c) To the extent necessary in order to carry out this section, the 
President's pay agent may obtain any salary data sets (referred to in 
subsection (b)) from any organization or entity that regularly compiles 
similar data for businesses in the private sector.
    (d)(1)(A) This paragraph applies with respect to the five 
metropolitan statistical areas described in paragraph (3) which--
            (i) have the highest levels of nonfarm employment (as 
        determined based on data made available by the Bureau of Labor 
        Statistics); and
            (ii) as of the date of the enactment of this Act, have not 
        previously been surveyed by the Bureau of Labor Statistics (as 
        discrete pay localities) for purposes of section 5304 of title 
        5, United States Code.

    (B) The President's pay agent, based on such comparisons under 
subsection (b) as the pay agent considers appropriate, shall: (i) 
determine whether any of the five areas under subparagraph (A) warrants 
designation as a discrete pay locality; and (ii) if so, make 
recommendations as to what level of comparability payments would be 
appropriate during 2002 for each area so determined.
    (C)(i) Any recommendations under subparagraph (B)(ii) shall be 
included--
            (I) in the pay agent's report under section 5304(d)(1) of 
        title 5, United States Code, submitted for purposes of 
        comparability payments scheduled to become payable in 2002; or
            (II) if compliance with subclause (I) is impracticable, in a 
        supplementary report which the pay agent shall submit to the 
        President and the Congress no later than March 1, 2001.

    (ii) In the event that the recommendations are completed in time to 
be included in the report described in clause (i)(I), a copy of those 
recommendations shall be transmitted by the pay agent to the Congress 
contemporaneous with their submission to the President.
    (D) Each of the five areas under subparagraph (A) that so warrants, 
as determined by the President's pay agent, shall be designated as a 
discrete pay locality under section 5304 of title 5, United States Code, 
in time for it to be treated as such for purposes of comparability 
payments becoming payable in 2002.
    (2) The President's pay agent may, at any time after the 180th day 
following the submission of the report under subsection (f ), make any 
initial or further determinations or recommendations under this section, 
based on any pay comparisons under subsection (b), with respect to any 
area described in paragraph (3).
    (3) An area described in this paragraph is any metropolitan 
statistical area within the continental United States that (as 
determined based on data made available by the Bureau of Labor 
Statistics and the Office of Personnel Management, respectively) has a 
high level of nonfarm employment and at least 2,500 General Schedule 
employees whose post of duty is within such area.
    (e)(1) The authority under this section to make pay comparisons and 
to make any determinations or recommendations based on such comparisons 
shall be available to the President's pay agent only for purposes of 
comparability payments becoming payable on

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

or after January 1, 2002, and before January 1, 2007, and only with 
respect to areas described in subsection (d)(3).
    (2) Any comparisons and recommendations so made shall, if included 
in the pay agent's report under section 5304(d)(1) of title 5, United 
States Code, for any year (or the pay agent's supplementary report, in 
accordance with subsection (d)(1)(C)(i)(II)), be considered and acted on 
as the pay agent's comparisons and recommendations under such section 
5304(d)(1) for the area and the year involved.
    (f )(1) No later than March 1, 2001, the President's pay agent shall 
submit to the Committee on Government Reform of the House of 
Representatives, the Committee on Governmental Affairs of the Senate, 
and the Committees on Appropriations of the House of Representatives and 
of the Senate, a report on the use of pay comparison data, as described 
in subsection (b)(2) or (3) (as appropriate), for purposes of 
comparability payments.
    (2) The report shall include the cost of obtaining such data, the 
rationale underlying the decisions reached based on such data, and the 
relative advantages and disadvantages of using such data (including 
whether the effort involved in analyzing and integrating such data is 
commensurate with the benefits derived from their use). The report may 
include specific recommendations regarding the continued use of such 
data.
    (g)(1) No later than May 1, 2001, the President's pay agent shall 
prepare and submit to the committees specified in subsection (f )(1) a 
report relating to the ongoing efforts of the Office of Personnel 
Management, the Office of Management and Budget, and the Bureau of Labor 
Statistics to revise the methodology currently being used by the Bureau 
of Labor Statistics in performing its surveys under section 5304 of 
title 5, United States Code.
    (2) The report shall include a detailed accounting of any concerns 
the pay agent may have regarding the current methodology, the specific 
projects the pay agent has directed any of those agencies to undertake 
in order to address those concerns, and a time line for the anticipated 
completion of those projects and for implementation of the revised 
methodology.
    (3) The report shall also include recommendations as to how those 
ongoing efforts might be expedited, including any additional resources 
which, in the opinion of the pay agent, are needed in order to expedite 
completion of the activities described in the preceding provisions of 
this subsection, and the reasons why those additional resources are 
needed.
    Sec. 638. Federal Funds Identified. Any request for proposals, 
solicitation, grant application, form, notification, press release, or 
other publications involving the distribution of Federal funds shall 
indicate the agency providing the funds and the amount provided. This 
provision shall apply to direct payments, formula funds, and grants 
received by a State receiving Federal funds.

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

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

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

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

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

    ``(a) In this section, the term--
            ``(1) `conviction notice date' means the date on which an 
        agency that employs a law enforcement officer has notice that 
        the officer has been convicted of a felony that is entered by a 
        Federal or State court, regardless of whether that conviction is 
        appealed or is subject to appeal; and
            ``(2) `law enforcement officer' has the meaning given that 
        term under section 8331(20) or 8401(17).

    ``(b) Any law enforcement officer who is convicted of a felony shall 
be removed from employment as a law enforcement officer on the last day 
of the first applicable pay period following the conviction notice date.
    ``(c)(1) This section does not prohibit the removal of an individual 
from employment as a law enforcement officer before a conviction notice 
date if the removal is properly effected other than under this section.
    ``(2) This section does not prohibit the employment of any 
individual in any position other than that of a law enforcement officer.
    ``(d) If the conviction is overturned on appeal, the removal shall 
be set aside retroactively to the date on which the removal occurred, 
with back pay under section 5596 for the period during which the removal 
was in effect, unless the removal was properly effected other than under 
this section.
    ``(e)(1) If removal is required under this section, the agency shall 
deliver written notice to the employee as soon as practicable, and not 
later than 5 calendar days after the conviction notice date. The notice 
shall include a description of the specific reasons for the removal, the 
date of removal, and the procedures made applicable under paragraph (2).
    ``(2) The procedures under section 7513(b)(2), (3), and (4), (c), 
(d), and (e) shall apply to any removal under this section. The employee 
may use the procedures to contest or appeal a removal, but only with 
respect to whether--
            ``(A) the employee is a law enforcement officer;
            ``(B) the employee was convicted of a felony; or
            ``(C) the conviction was overturned on appeal.

    ``(3) A removal required under this section shall occur on the date 
specified in subsection (b) regardless of whether the notice required 
under paragraph (1) of this subsection and the procedures made 
applicable under paragraph (2) of this subsection have been provided or 
completed by that date.''.
    (b) Technical and Conforming Amendment.--The table of sections for 
chapter 73 of title 5, United States Code, is amended by adding after 
the item relating to section 7363 the following:

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

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

    (c) Effective Date.--The amendments made by this section shall take 
effect 30 days after the date of enactment of this Act

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

and shall apply to any conviction of a felony entered by a Federal or 
State court on or after that date.
    Sec. 640. Section 504 of the Department of Transportation and 
Related Agencies Appropriations Act, 2001 (as enacted into law by Public 
Law 106-346) is repealed.
    Sec. 641. (a) Section 5545b(d) of title 5, United States Code, is 
amended by inserting at the end the following new paragraph:
            ``(4) Notwithstanding section 8114(e)(1), overtime pay for a 
        firefighter subject to this section for hours in a regular tour 
        of duty shall be included in any computation of pay under 
        section 8114.''.

    (b) The amendment in subsection (a) shall be effective as if it had 
been enacted as part of the Federal Firefighters Overtime Pay Reform Act 
of 1998 (112 Stat. 2681-519).
    Sec. 642. Section 6323(a) of title 5, United States Code, is amended 
by adding at the end the following:
            ``(3) The minimum charge for leave under this subsection is 
        one hour, and additional charges are in multiples thereof.''.

    Sec. 643. Section 616 of the Treasury, Postal Service and General 
Government Appropriations Act, 1988, as contained in the Act of December 
22, 1987 (40 U.S.C. 490b), is amended by adding at the end the 
following:
    ``(e)(1) All existing and newly hired workers in any child care 
center located in an executive facility shall undergo a criminal history 
background check as defined in section 231 of the Crime Control Act of 
1990 (42 U.S.C. 13041).
    ``(2) For purposes of this subsection, the term `executive facility' 
means a facility that is owned or leased by an office or entity within 
the executive branch of the Government (including one that is owned or 
leased by the General Services Administration on behalf of an office or 
entity within the judicial branch of the Government).
    ``(3) Nothing in this subsection shall be considered to apply with 
respect to a facility owned by or leased on behalf of an office or 
entity within the legislative branch of the Government.''.
    Sec. 644. Section 501 of the Department of Transportation and 
Related Agencies Appropriations Act, 2001 (as enacted into law by Public 
Law 106-346) is amended by striking subsection (c) and by redesignating 
subsection (d) as subsection (c).
    Sec. 645. (a)(1) Title 5, United States Code, is amended by 
inserting after section 5372a the following:

``Sec. 5372b. Administrative appeals judges

    ``(a) For the purpose of this section--
            ``(1) the term `administrative appeals judge position' means 
        a position the duties of which primarily involve reviewing 
        decisions of administrative law judges appointed under section 
        3105; and
            ``(2) the term `agency' means an Executive agency, as 
        defined by section 105, but does not include the General 
        Accounting Office.

    ``(b) Subject to such regulations as the Office of Personnel 
Management may prescribe, the head of the agency concerned shall fix the 
rate of basic pay for each administrative appeals judge position within 
such agency which is not classified above GS-15 pursuant to section 
5108.
    ``(c) A rate of basic pay fixed under this section shall be--

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

            ``(1) not less than the minimum rate of basic pay for level 
        AL-3 under section 5372; and
            ``(2) not greater than the maximum rate of basic pay for 
        level AL-3 under section 5372.''.

    (2) Section 7323(b)(2)(B)(ii) of title 5, United States Code, is 
amended by striking ``or 5372a'' and inserting ``5372a, or 5372b''.
    (3) The table of sections for chapter 53 of title 5, United States 
Code, is amended by inserting after the item relating to section 5372a 
the following:

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

    (b) The amendment made by subsection (a)(1) shall apply with respect 
to pay for service performed on or after the first day of the first 
applicable pay period beginning on or after--
            (1) the 120th day after the date of the enactment of this 
        Act; or
            (2) if earlier, the effective date of regulations prescribed 
        by the Office of Personnel Management to carry out such 
        amendment.

    Sec. 646. Not later than 60 days after the date of enactment of this 
Act, the Inspector General of each department or agency shall submit to 
Congress a report that discloses any activity of the applicable 
department or agency relating to--
            (1) the collection or review of singular data, or the 
        creation of aggregate lists that include personally identifiable 
        information, about individuals who access any Internet site of 
        the department or agency; and
            (2) entering into agreements with third parties, including 
        other government agencies, to collect, review, or obtain 
        aggregate lists or singular data containing personally 
        identifiable information relating to any individual's access or 
        viewing habits for governmental and nongovernmental Internet 
        sites.

    This Act may be cited as the ``Treasury and General Government 
Appropriations Act, 2001''.

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

                          APPENDIX D--H.R. 5666

That the following sums are appropriated, out of any money in the 
Treasury not otherwise appropriated, for the fiscal year ending 
September 30, 2001, and for other purposes, namely:

                               DIVISION A

                                CHAPTER 1

                    GENERAL PROVISIONS--THIS CHAPTER

    Sec. 101. The Agriculture, Rural Development, Food and Drug 
Administration, and Related Agencies Appropriations Act, 2001, is 
amended--
            (1) In title III, under the heading ``Rural Utilities 
        Service, Rural Electrification and Telecommunications Loans 
        Program Account'', after ``per year'' insert ``: Provided 
        further, That not more than $100,000 shall be available for 
        guarantees of private sector loans''.
            (2) In title III, at the end of the first proviso under the 
        ``Rural Housing Assistance Grants'' account, insert ``in 
        Mississippi and Alaska''.
            (3) In section 724, by striking ``to Hispanic-serving 
        institutions'' and all that follows through ``maintained by such 
        institutions'' and inserting ``to eligible grantees specified in 
        subsection (d)(3) of that section'';
            (4) In title VIII, under the heading ``Rural Community 
        Advancement Program'', by striking ``January 1, 2001'' and 
        inserting ``January 1, 2000'';
            (5) In section 806, by inserting ``: Provided further, That 
        of the funds made available by this section, the Secretary shall 
        transfer $5,000,000 to the State of Alabama to be used in 
        conjunction with the program administered by the Alabama 
        Department of Agriculture and Industries: Provided further, That 
        of the funds made available by this section, the Secretary shall 
        transfer not more than $300,000 to the State of Montana for 
        transportation needs associated with emergency haying and 
        feeding: Provided further, That of the funds made available by 
        this section, the Secretary shall use not more than $2,000,000 
        to carry out a program for income losses sustained before April 
        30, 2001, by individuals who raise poultry owned by other 
        individuals as a result of Poult Enteritis Mortality Syndrome 
        control programs, as determined by the Secretary'' after 
        ``American Indian Livestock Feed Program'';
            (6) In section 815(d)(3), by inserting ``affected'' after 
        ``all'';

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

            (7) In section 830, by striking ``section 401'' and 
        inserting ``title IV''.
            (8) In section 843, by striking ``were unable to market the 
        crops'' and all that follows through ``in this section:'' and 
        inserting ``suffered a loss because of the insolvency of an 
        agriculture cooperative in the State of California: Provided, 
        That the amount of a payment made to a producer under this 
        section shall not exceed 50 percent of the loss referred to in 
        this section:'';
            (9) In section 844--
                    (A) in the section heading, by inserting ``, FLUE-
                CURED, AND CIGAR BINDER TYPE 54-55'' after ``BURLEY''; 
                and
                    (B) in subsection (a)--
                          (i) in paragraph (1)--
                                    (I) by inserting ``, without further 
                                cost to the association,'' after 
                                ``settle''; and
                                    (II) by inserting ``, Flue-cured, or 
                                Cigar Binder Type 54-55'' after 
                                ``Burley'' each place it appears;
                          (ii) in paragraph (2)(B), by inserting ``, 
                      Flue-cured, Cigar Binder Type 54-55,'' after 
                      ``Burley''; and
                          (iii) in paragraph (3), by striking 
                      subparagraph (A) and inserting the following:
                    ``(A) counted for the purpose of determining the 
                Burley, Flue-cured, or Cigar Binder Type 54-55 tobacco 
                quota or allotment for any year under part I of subtitle 
                B of title III of the Agricultural Adjustment Act of 
                1938 (7 U.S.C. 1311 et seq.); or'';
            (10) Notwithstanding any other provision of law, section 
        204(b)(10)(B) of Public Law 106-224 shall not be effective until 
        July 1, 2001; and
            (11) The effective date of this section is the date of 
        enactment of the Agriculture, Rural Development, Food and Drug 
        Administration, and Related Agencies Appropriations Act, 2001.

    Sec. 102. The second sentence of section 520 of the Housing Act of 
1949 (42 U.S.C. 1490) is amended by striking ``1990 decennial census'' 
and inserting ``1990 or 2000 decennial census'', and by striking ``year 
2000'' and inserting ``year 2010''.
    Sec. 103. The Secretary of Agriculture, in collaboration with the 
Secretaries of Energy and Interior, shall undertake a study of the 
feasibility of including ethanol, biodiesel, and other bio-based fuels 
as part of the Strategic Petroleum Reserve. This study shall include a 
review of legislative and regulatory changes needed to allow this 
inclusion, and those elements necessary to design and implement such a 
program, including cost. The Secretary shall provide this study to the 
House and Senate Appropriations Committees by February 15, 2001.
    Sec. 104. Notwithstanding section 730 of the Agriculture, Rural 
Development, Food and Drug Administration, and Related Agencies 
Appropriations Act, 2000 (Public Law 106-78), the City of Wilson, North 
Carolina, shall be eligible in fiscal year 2001 for the community 
facility loan guarantee program under section 306(a)(1) of the 
Consolidated Farm and Rural Development Act.
    Sec. 105. Title VIII of the Agriculture, Rural Development, Food and 
Drug Administration, and Related Agencies Appropriations Act, 2001, is 
amended by inserting at the end the following new section:

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

    ``Sec. 778. Notwithstanding section 723 of this Act or any other 
provision of law, there are hereby appropriated $26,000,000, to remain 
available until expended, for the program authorized under section 334 
of the Federal Agriculture Improvement and Reform Act of 1996: Provided, 
That the entire amount shall be available only to the extent an official 
budget request for $26,000,000, that includes designation of the entire 
amount of the request as an emergency requirement as defined in the 
Balanced Budget and Emergency Deficit Control Act of 1985, as amended, 
is transmitted by the President to the Congress: Provided further, That 
the entire amount is designated by the Congress as an emergency 
requirement pursuant to section 251(b)(2)(A) of such Act.''.
    Sec. 106. In carrying out the bovine tuberculosis eradication 
program covered by the Secretary of Agriculture's emergency declaration 
effective as of October 11, 2000, the Secretary of Agriculture shall pay 
100 percent of the amounts of approved claims for materials affected by 
or exposed to bovine tuberculosis, and of approved claims growing out of 
the destruction of animals: Provided, That in calculating the net 
present value of the future income portion of any claim, the Secretary 
shall use a discount rate of 7 percent: Provided further, That the 
entire amount necessary to carry out this section shall be available 
only to the extent that an official budget request for the entire 
amount, that includes designation of the entire amount of the request as 
an emergency requirement as defined in the Balanced Budget and Emergency 
Deficit Control Act of 1985, as amended, is transmitted by the President 
to the Congress: Provided further, That the entire amount is designated 
by the Congress as an emergency requirement pursuant to section 
251(b)(2)(A) of such Act.
    Sec. 107. Section 820(b) of the Agriculture, Rural Development, Food 
and Drug Administration, and Related Agencies Appropriations Act, 2001, 
is amended by striking ``of 1996'' and inserting the following: ``of 
1996, and for the Farmland Protection Program established under section 
388 of the Federal Agriculture Improvement and Reform Act of 1996''.
    Sec. 108. For an additional amount for the United States Department 
of Agriculture, Office of the General Counsel, $500,000: Provided, That 
the entire amount shall be available only to the extent an official 
budget request for $500,000, that includes designation of the entire 
amount of the request as an emergency requirement as defined in the 
Balanced Budget and Emergency Deficit Control Act of 1985, as amended, 
is transmitted by the President to the Congress: Provided further, That 
the entire amount is designated by the Congress as an emergency 
requirement pursuant to section 251(b)(2)(A) of such Act.
    Sec. 109. For an additional amount for Grain Inspection, Packers and 
Stockyards Administration, Salaries and Expenses, $200,000: Provided, 
That the entire amount shall be available only to the extent an official 
budget request for $200,000, that includes designation of the entire 
amount of the request as an emergency requirement as defined in the 
Balanced Budget and Emergency Deficit Control Act of 1985, as amended, 
is transmitted by the President to the Congress: Provided further, That 
the entire amount is designated by the Congress as an emergency 
requirement pursuant to section 251(b)(2)(A) of such Act.
    Sec. 110. Notwithstanding any other provision of law, the Natural 
Resources Conservation Service may provide financial and

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

technical assistance to the Hamakua Ditch project in Hawaii from funds 
available for the Emergency Watershed Program, not to exceed $3,000,000.

                                CHAPTER 2

                          DEPARTMENT OF JUSTICE

                          Federal Prison System

                          salaries and expenses

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

                       Office of Justice Programs

                           justice assistance

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

                  community oriented policing services

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

                        juvenile justice programs

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

                           General Provisions

    Sec. 201. Chapter 2 of title II of division B of Public Law 106-246 
(114 Stat. 542) is amended in the matter immediately under the first 
heading--
    (1) by inserting, ``(or the State, in the case of New Mexico)'' 
before ``only''; and
    (2) by inserting, ``detention costs,'' after ``court costs,''.
    Sec. 202. For an additional amount under the heading ``United States 
Attorneys, Salaries and Expenses'' in the Departments of Commerce, 
Justice, and State, the Judiciary, and Related Agencies Appropriations 
Act, 2001, $10,000,000 for the State of Texas and $2,000,000 for the 
State of Arizona, to reimburse county and municipal governments only for 
Federal costs associated with the handling and processing of illegal 
immigration and drug and alien smuggling

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

cases, such reimbursements being limited to court costs, detention 
costs, courtroom technology, the building of holding spaces, 
administrative staff, and indigent defense costs.
    Sec. 203. In addition to amounts appropriated under the heading 
``State and Local Law Enforcement Assistance, Office of Justice 
Programs'' in the Departments of Commerce, Justice, and State, the 
Judiciary, and Related Agencies Appropriations Act, 2001, $9,000,000 is 
for an award to the Alliance of Boys & Girls of South Carolina for the 
establishment of the Strom Thurmond Boys & Girls Club National Training 
Center.
    Sec. 204. In addition to any amounts made available for ``State and 
Local Law Enforcement Assistance'' within the Department of Justice, 
$500,000 shall be made available only for the New Hampshire Department 
of Safety to investigate and support the prosecution of violations of 
Federal trucking laws.
    Sec. 205. In addition to other amounts made available for the COPS 
technology program of the Department of Justice, $4,000,000 shall be 
available to the State of South Dakota to establish a regional radio 
system to facilitate communications between Federal, State, and local 
law enforcement agencies, firefighting agencies, and other emergency 
services agencies.

                         DEPARTMENT OF COMMERCE

                    Economic and Statistical Analysis

                          salaries and expenses

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

             National Oceanic and Atmospheric Administration

                  operations, research, and facilities

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

                           General Provisions

    Sec. 206. The Departments of Commerce, Justice, and State, the 
Judiciary, and Related Agencies Appropriations Act, 2001, as enacted by 
section 1(a)(2) of the Act entitled ``An Act making appropriations for 
the government of the District of Columbia and other activities 
chargeable in whole or in part against revenues of said District for the 
fiscal year ending September 30, 2001, and for other purposes'' is 
amended by inserting before the period at the end of the paragraph under 
the heading ``National Oceanic and Atmospheric Administration, 
Operations, Research, and Facilities'' the following new proviso: ``: 
Provided further, That, of the amounts made available for the National 
Marine Fisheries Service under this heading, $10,000,000 shall be 
available only for research regarding litigation concerning the Alaska 
Steller sea lion and Bering Sea/Aleutian Islands and Gulf of Alaska 
groundfish fisheries, of which $6,000,000 shall be available only for 
the Office of Oceanic

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

and Atmospheric Research to study the impact of ocean climate shifts on 
the North Pacific and Bering Sea fish and marine mammal species 
composition, of which $2,000,000 shall be available only for the 
National Ocean Service to study predator/prey relationships as they 
relate to the decline of the western population of Steller sea lions, 
and of which $2,000,000 shall be available only for the North Pacific 
Fishery Management Council for an independent analysis of Steller sea 
lion science and other work related to such litigation''.
    Sec. 207. (a) In addition to amounts appropriated or otherwise made 
available under the heading ``Operations, Research, and Facilities, 
National Oceanic and Atmospheric Administration'' in the Departments of 
Commerce, Justice, and State, the Judiciary, and Related Agencies 
Appropriations Act, 2001, $7,500,000 is appropriated for disaster 
assistance for communities affected by the 2000 western Alaska salmon 
disaster for which the Secretary of Commerce declared a fishery failure 
under section 312(a) of the Magnuson Stevens Fisheries Conservation and 
Management Act.
    (b) Funds appropriated by this section shall be made available as 
direct lump sum payments no later than 30 days after the date of 
enactment of this Act, as follows: $3,500,000 to the Tanana Chiefs 
Conference, $3,500,000 to the Association of Village Council Presidents, 
and $500,000 to Kawerak.
    (c) Such funds shall be used to provide personal assistance with 
priority given to: (1) food; (2) energy needs; (3) housing assistance; 
(4) transportation fuel including for subsistence activities; and (5) 
other urgent community needs.
    (d) Not more than 5 percent of such funds may be used for 
administrative expenses.
    (e) The President of the Tanana Chiefs Conference, the President of 
the Association of Village Council Presidents, and the President of 
Kawerak shall disburse all funds no later than May 1, 2000 and shall 
submit a report to the Secretary of Commerce detailing the expenditure 
of funds, including the number of persons and households served and the 
amount of administrative costs, by the end of the fiscal year.
    Sec. 208. In addition to amounts appropriated or otherwise made 
available by this or any other Act, $3,000,000 is appropriated to enable 
the Secretary of Commerce to provide economic assistance to fishermen 
and fishing communities affected by Federal closures and fishing 
restrictions in the Hawaii long line fishery, to remain available until 
expended.
    Sec. 209. Implementation of Steller Sea Lion Protective Measures.--
    (a) Findings.--The Congress finds that--
            (1) the western population of Steller sea lions has 
        substantially declined over the last 25 years.
            (2) scientists should closely research and analyze all 
        possible factors relating to such decline, including the 
        possible interactions between commercial fishing and Steller sea 
        lions and the localized depletion hypothesis;
            (3) the authority to manage commercial fisheries in Federal 
        waters lies with the regional councils and the Secretary of 
        Commerce (hereafter in this section ``Secretary'') pursuant to 
        the Magnuson-Stevens Fishery Conservation and Management Act 
        (hereafter in this section ``Magnuson-Stevens Act''); and

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

            (4) the Secretary of Commerce shall comply with the 
        Magnuson-Stevens Act when using fishery management plans and 
        regulations to implement the decisions made pursuant to findings 
        under the Endangered Species Act, and shall utilize the 
        processes and procedures of the regional fishery management 
        councils as required by the Magnuson-Stevens Act.

    (b) Independent Scientific Review.--The North Pacific Fishery 
Management Council (hereafter in this section ``North Pacific Council) 
shall utilize the expertise of the National Academy of Sciences to 
conduct an independent scientific review of the November 30, 2000 
Biological Opinion for the Bering Sea/Aleutian Islands and Gulf of 
Alaska groundfish fisheries (hereafter in this section ``Biological 
Opinion''), its underlying hypothesis, and the Reasonable and Prudent 
Alternatives (hereafter in this section ``Alternatives'') contained 
therein. The Secretary shall cooperate with the independent scientific 
review, and the National Academy of Sciences is requested to give its 
highest priority to this review.
    (c) Preparation of Fishery Management Plans and Regulations To 
Implement Protective Measures in the November 30, 2000 Biological 
Opinion.--
            (1) The Secretary of Commerce shall submit to the North 
        Pacific Council proposed conservation and management measures to 
        implement the Alternatives contained in the November 30, 2000 
        Biological Opinion for the Bering Sea/Aleutian Islands and Gulf 
        of Alaska groundfish fisheries. The North Pacific Council shall 
        prepare and transmit to the Secretary a fishery management plan 
        amendment or amendments to implement such Alternatives that are 
        consistent with the Magnuson-Stevens Act (including requirements 
        in such Act relating to best available science, bycatch 
        reduction, impacting on fishing communities, the safety of life 
        at sea, and public comment and hearings.)
            (2) The Bering Sea/Aleutian Islands and Gulf of Alaska 
        groundfish fisheries shall be managed in a manner consistent 
        with the Alternatives contained in the Biological Opinion, 
        except as otherwise provided in this section. The Alternatives 
        shall become fully effective no later than January 1, 2002, as 
        revised if necessary and appropriate based on the independent 
        scientific review referred to in subsection (b) and other new 
        information, and shall be phased in in 2001 as described in 
        paragraph (3).
            (3) The 2001 Bering Sea/Aleutian Islands and Gulf of Alaska 
        groundfish fisheries shall be managed in accordance with the 
        fishery management plan and Federal regulations in effect for 
        such fisheries prior to July 15, 2000, including--
                    (A) conservative total allowable catch levels;
                    (B) no entry zones within three miles of rookeries;
                    (C) restricted harvest levels near rookeries and 
                haul-outs;
                    (D) federally-trained observers;
                    (E) spatial and temporal harvest restrictions;
                    (F) federally-mandated bycatch reduction programs; 
                and
                    (G) additional conservation benefits provided 
                through cooperative fishing arrangements,

        and said regulations are hereby restored to full force and 
        effect.

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

            (4) The Secretary shall amend these regulations by January 
        20, 2001, after consultation with the North Pacific Council and 
        in a manner consistent with all law, including the Magnuson-
        Stevens Act, and consistent with the Alternatives to the maximum 
        extent practicable, subject to the other provisions of this 
        subsection.
            (5) The harvest reduction requirement (``Global Control 
        Rule'') shall take effect immediately in any 2001 groundfish 
        fishery in which it applies, but shall not cause a reduction in 
        the total allowable catch of any fishery of more than 10 
        percent.
            (6) In enforcing regulations for the 2001 fisheries, the 
        Secretary, upon recommendation of the North Pacific Council, may 
        open critical habitat where needed, adjust seasonal catch 
        levels, and take other measures as needed to ensure that harvest 
        levels are sufficient to provide income from these fisheries for 
        small boats and Alaskan on-shore processors that is no less than 
        in 1999.
            (7) The regulations that are promulgated pursuant to 
        paragraph (4) shall not be modified in any way other than upon 
        recommendation of the North Pacific Council, before March 15, 
        2001.

    (d) Sea Lion Protection Measures.--$20,000,000 is hereby 
appropriated to the Secretary of Commerce to remain available until 
expended to develop and implement a coordinated, comprehensive research 
and recovery program for the Steller sea lion, which shall be designed 
to study--
            (1) available prey species;
            (2) predator/prey relationships;
            (3) predation by other marine mammals;
            (4) interactions between fisheries and Steller sea lions, 
        including the localized depletion theory;
            (5) regime shift, climate change, and other impacts 
        associated with changing environmental conditions in the North 
        Pacific and Bering Sea;
            (6) disease;
            (7) juvenile and pup survival rates;
            (8) population counts;
            (9) nutritional stress;
            (10) foreign commercial harvest of sealions outside the 
        exclusive economic zone;
            (11) the residual impacts of former government-authorized 
        Steller sea lion eradication bounty programs; and
            (12) the residual impacts of intentional lethal takes of 
        Steller sea lions.

Within available funds the Secretary shall implement on a pilot basis 
innovative non-lethal measures to protect Steller sea lions from marine 
mammal predators including killer whales.
    (e) Economic Disaster Relief.--$30,000,000 is hereby appropriated to 
the Secretary of Commerce to make available as a direct payment to the 
Southwest Alaska Municipal Conference to distribute to fishing 
communities, businesses, community development quota groups, 
individuals, and other entities to mitigate the economic losses caused 
by Steller sea lion protection measures heretofore incurred; provided 
that the President of such organization shall provide a written report 
to the Secretary and the House

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

and Senate Appropriations Committee within 6 months of receipt of these 
funds.

                 DEPARTMENT OF STATE AND RELATED AGENCY

                           General Provisions

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

                            RELATED AGENCIES

                  Commission on Online Child Protection

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

                      Small Business Administration

                          salaries and expenses

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

                            General Provision

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

                     GENERAL PROVISION--THIS CHAPTER

    Sec. 213. (a) The provisions of H.R. 5548 (as enacted into law by 
H.R. 4942 of the 106th Congress) are amended as follows:
            (1) In title I, under the heading ``Salaries and Expenses, 
        United States Marshals Service'', by striking ``3,947'' and 
        inserting ``4,034''.
            (2) In title I, by redesignating sections 114 through 119 as 
        sections 113 through 118, respectively.
            (3) In title II, under the heading ``National Oceanic and 
        Atmospheric Administration--Operations, Research, and 
        Facilities'', by striking ``$31,439,000'' and inserting 
        ``$32,054,000''.
            (4) In title II, under the heading ``National Oceanic and 
        Atmospheric Administration--Coastal and Ocean Activities''--

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

                    (A) by striking ``non-contiguous States except 
                Hawaii'' and inserting ``Alaska'';
                    (B) by striking ``Inc,'' and inserting ``Inc.,'';
                    (C) by striking ``scrup;'' and inserting ``scrub;''; 
                and
                    (D) by striking ``watershed for lower Rouge River 
                restoration:'' and inserting ``watershed:''.
            (5) In title IV, by striking section 406 and by 
        redesignating sections 407 and 408 as sections 406 and 407, 
        respectively.
            (6) In title VI, by striking sections 635 and 636.
            (7) In title IX, in the first proviso of section 901, by 
        striking ``, territory or an Indian Tribe'' and inserting ``or 
        territory''.

    (b) The amendments made by this section shall take effect as if 
included in H.R. 4942 of the 106th Congress on the date of its 
enactment.

                                CHAPTER 3

                          DEPARTMENT OF DEFENSE

                    General Provisions--This Chapter

    Sec. 301. In the event that award of the full funding contract for 
low-rate initial production of the F-22 aircraft is delayed beyond 
December 31, 2000 because of inability to complete the requirements 
specified in section 8124 of the Department of Defense Appropriations 
Act, 2001 (Public Law 106-259), the Secretary of the Air Force may 
obligate up to $353,000,000 of the funds appropriated in title III of 
Public Law 106-259 to continue F-22 Lot 1 (10 aircraft) advance 
procurement to protect the supplier base and preserve program costs and 
schedule.
    Sec. 302. (a) Consistent with Executive Order Number 1733, dated 
March 3, 1913, and notwithstanding section 303 of the Alaska National 
Interest Lands Conservation Act, Public Law 96-487, or any other law, 
the Department of the Air Force shall have primary jurisdiction, 
custody, and control over Shemya Island and its appurtenant waters 
(including submerged lands). In exercising such primary jurisdiction, 
custody, and control, the Secretary of the Air Force may utilize and 
apply such authorities as are generally applicable to a military 
installation, base, camp, post, or station. Shemya Island and its 
appurtenant waters (including submerged lands) shall continue to be 
included within the Alaska Maritime National Wildlife Refuge and the 
National Wildlife Refuge System and the Secretary of the Interior shall 
have jurisdiction secondary to that of the Department of the Air Force. 
Nothing in this section shall prohibit the transfer of jurisdiction, 
custody, and control over Shemya Island by the Department of the Air 
Force to another military department. In the event the military 
department exercising such primary jurisdiction, custody, and control no 
longer has a need to exercise such primary jurisdiction, custody, and 
control of Shemya Island and its appurtenant waters (including submerged 
lands), such jurisdiction, custody, and control shall terminate and the 
Secretary of the Interior shall then exercise sole jurisdiction, 
custody, and control over Shemya Island and its appurtenant waters 
(including submerged lands) as part of the Alaska Maritime National 
Wildlife Refuge.
    (b) Any environmental contamination of Shemya Island caused by a 
military department shall be the responsibility of that military

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

department and not the responsibility of the Department of the Interior. 
Any money rentals received by a military department from outgrants on 
Shemya Island will be applied to the environmental restoration of the 
island in accordance with 10 U.S.C. 2667.
    (c) This section shall not be construed as altering any existing 
property rights of the State of Alaska or any private person.
    (d) The military department exercising primary jurisdiction, 
custody, and control over Shemya Island shall, consistent with the 
accomplishment of the military mission and subject to section 21 of the 
Internal Security Act of 1950, Public Law 81-831 (50 U.S.C. 797) (also 
known as the Subversive Activities Control Act of 1950)--
            (1) work with the United States Fish and Wildlife Service to 
        protect and conserve the wildlife and habitat on the island; and
            (2) grant access to Shemya Island and its appurtenant waters 
        to the United States Fish and Wildlife Service for the purpose 
        of management of the Alaska Maritime National Wildlife Refuge.

    Sec. 303. Within the funds appropriated for the Patriot PAC-3 
program under title III of the Department of Defense Appropriations Act, 
2001 (Public Law 106-259), the Ballistic Missile Defense Organization 
shall procure no less than 40 PAC-3 missiles.
    Sec. 304. Section 8133 of Public Law 106-259 (114 Stat. 703) is 
amended by striking ``$300,000,000'' in the first proviso and inserting 
``$550,000,000''.

                           (transfer of funds)

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

                      (including transfer of funds)

    Sec. 308. In addition to amounts appropriated for the Department of 
Defense in the Department of Defense Appropriations Act,

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

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

                           (transfer of funds)

    Sec. 311. Of the funds made available in the Department of Defense 
Appropriations Act, 2001 (Public Law 106-259), the Secretary of the Air 
Force shall transfer $5,000,000 of the funds provided for ``Operation 
and Maintenance, Air Force'' to the Secretary of the Interior for 
maintenance, protection, or preservation of the land and interests in 
land described in section 3 of the Minuteman Missile National Historic 
Site Establishment Act of 1999 (Public Law 106-115; 113 Stat. 1540): 
Provided, That the transfer authority provided in this section is in 
addition to any other transfer authority available to the Department of 
Defense for fiscal year 2001.
    Sec. 312. (a) The Secretary of the Air Force is authorized to convey 
to the Roosevelt General Hospital, Portales, New Mexico, without 
consideration, and without regard to title II of the Federal Property 
and Administrative Services Act of 1949, all right, title,

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

and interest of the United States in any personal property of the Air 
Force that the Secretary determines--
            (1) is appropriate for use by the Roosevelt General Hospital 
        in the operation of that hospital; and
            (2) is excess to the needs of the Air Force.

    (b) The Secretary may require any additional terms and conditions in 
connection with any conveyance under subsection (a) that the Secretary 
considers appropriate to protect the interests of the United States.

                      (including transfer of funds)

    Sec. 313. In addition to amounts appropriated for the Department of 
Defense in the Department of Defense Appropriations Act, 2001 (Public 
Law 106-259), $100,000,000 is hereby appropriated for ``Overseas 
Contingency Operations Transfer Fund'' and shall remain available until 
expended: Provided, That the Secretary of Defense may transfer the funds 
provided herein only to appropriations for military personnel; operation 
and maintenance; procurement; research, development, test and 
evaluation; and working capital funds: Provided further, That the funds 
transferred shall be merged with and shall be available for the same 
purposes and for the same time period, as the appropriation to which 
transferred: Provided further, That upon a determination that all or 
part of the funds transferred from this appropriation are not necessary 
for the purposes provided herein, such amounts may be transferred back 
to this appropriation: Provided further, That the transfer authority 
provided in this section is in addition to any other transfer authority 
contained elsewhere in this Act: Provided further, That funds 
appropriated by this section, or made available by the transfer of funds 
in this section, for intelligence activities are deemed to be 
specifically authorized by the Congress for the purposes of section 504 
of the National Security Act of 1947 (50 U.S.C. 414) during fiscal year 
2001: Provided further, That the entire amount made available in this 
section is designated by the Congress as an emergency requirement 
pursuant to section 251(b)(2)(A) of the Balanced Budget and Emergency 
Deficit Control Act of 1985, as amended.
    Sec. 314. Of the total amount appropriated by title IV of the 
Department of Defense Appropriations Act, 2001 (Public Law 106-259) 
under the heading ``Research, Development, Test and Evaluation, Navy'', 
up to $3,000,000 shall be made available to the Marine Corps to pursue 
research in Nanotechnology for Consequence Management.
    Sec. 315. Of the total amount appropriated by title IV of the 
Department of Defense Appropriations Act, 2001 (Public Law 106-259) 
under the heading ``Research, Development, Test and Evaluation, Army'', 
not less than $1,500,000 shall be made available only for installation 
of the Medical Area Network for Virtual Technologies at Fort Detrick and 
Walter Reed Army Hospital, and not less than $1,000,000 shall be made 
available only to conduct a pilot study to determine the feasibility of 
establishing a Department of Defense Information Analysis Center for 
telemedicine.
    Sec. 316. The Secretary of the Navy shall acquire 50 acres of real 
property located on Reed Island, along the south shore of the St. John's 
River across from Blount Island Command, Jacksonville, Florida. The 
Secretary of the Navy shall pay not more than the fair market value of 
the property, to be determined pursuant to an appraisal acceptable to 
the Secretary of the Navy;

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

but in no case shall the price exceed $4,200,000: Provided, That the 
exact acreage and legal description of the real property to be acquired 
pursuant to this section shall be determined by a survey satisfactory to 
the Secretary of the Navy: Provided further, That the Secretary of the 
Navy may require such additional terms and conditions in connection with 
the land acquisition pursuant to this section as the Secretary considers 
appropriate to protect the interests of the United States.
    Sec. 317. Of the total amount appropriated by title IV of the 
Department of Defense Appropriations Act, 2001 (Public Law 106-259) 
under the heading ``Research, Development, Test, and Evaluation, Navy'' 
the Secretary of the Navy may establish Marine Fire Training Centers at 
the Marine and Environmental Research and Training Station and Barbers 
Point by grants or contracts.
    Sec. 318. Notwithstanding any other provision of law, and 
notwithstanding the provisions in section 7306 of title 10, United 
States Code, of the funds provided in the Department of Defense 
Appropriations Act, 2001 (Public Law 106-259) for ``Operation and 
Maintenance, Navy'', $750,000 shall be available only for repair of ex-
Turner Joy.
    Sec. 319. In addition to amounts appropriated or otherwise made 
available for the Department of Defense elsewhere in this Act or in the 
Department of Defense Appropriations Act, 2001 (Public Law 106-259), 
$2,000,000 is hereby appropriated under the heading ``Operation and 
Maintenance, Defense-Wide'', to remain available for obligation until 
September 30, 2001, only for the Defense Imagery and Mapping Agency 
Program.
    Sec. 320. None of the funds available in the Department of Defense 
Appropriations Act, 2001 (Public Law 106-259) shall be used to 
consolidate or incorporate Air Force radar operations maintenance and 
support programs or contracts into an Air Force SENSOR or a similar 
acquisition program.
    Sec. 321. In addition to amounts appropriated elsewhere in this Act, 
or in the Department of Defense Appropriations Act, 2001 (Public Law 
106-259), $1,000,000 is hereby appropriated to ``Research, Development, 
Test and Evaluation, Air Force'', only to develop rapid diagnostic and 
fingerprinting techniques along with molecular monitoring systems for 
the detection of nosocomial infections.
    Sec. 322. Of the total amount appropriated by title IV of the 
Department of Defense Appropriations Act, 2001 (Public Law 106-259) 
under the heading ``Research, Development, Test and Evaluation, Navy'', 
$1,500,000 shall be made available by grant or contract only to the 
California Central Coast Research Partnership (C3RP).
    Sec. 323. Fort Irwin National Training Center Expansion. (a) 
Findings.--Congress makes the following findings:
            (1) The National Training Center at Fort Irwin, California, 
        is the only instrumented training area in the world suitable for 
        live fire training of heavy brigade-sized military forces and 
        thus provides the Army with essential training opportunities 
        necessary to maintain and improve military readiness and promote 
        national security.
            (2) The National Training Center must be expanded to meet 
        the critical need of the Army for additional training lands 
        suitable for the maneuver of large numbers of military personnel 
        and equipment, which is necessitated by advances

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

        in equipment, by doctrinal changes, and by Force XXI doctrinal 
        experimentation requirements.
            (3) The lands being considered for expansion of the National 
        Training Center are home to the desert tortoise and other 
        species that are protected under the Endangered Species Act of 
        1973, and the Secretary of Defense and the Secretary of the 
        Interior, in developing a plan for expansion of the National 
        Training Center, must provide for such expansion in a manner 
        that complies with the Endangered Species Act of 1973, the 
        National Environmental Policy Act of 1969, and other applicable 
        laws.
            (4) In order for the expansion of the National Training 
        Center to be implemented on an expedited basis, the Secretaries 
        should proceed without delay to define with specificity the key 
        elements of the expansion plan, including obtaining early input 
        regarding national security requirements, Endangered Species Act 
        of 1973 compliance and mitigation, and National Environmental 
        Policy Act of 1969 compliance.

    (b) Purpose.--The purpose of this section is to expedite the 
expansion of the National Training Center at Fort Irwin, California, in 
a manner that is fully compliant with environmental laws.
    (c) Preparation of Proposed Expansion Plan.--
            (1) Preparation required.--The Secretary of the Army and the 
        Secretary of the Interior (in this section referred to as the 
        ``Secretaries'') shall jointly prepare a proposed plan for the 
        expansion of the National Training Center at Fort Irwin, 
        California.
            (2) Submission and availability.--The plan required by 
        paragraph (1) (in this section referred to as the ``proposed 
        expansion plan'') shall be completed not later than 120 days 
        after the date of the enactment of this Act. When completed, the 
        Secretaries shall make the proposed expansion plan available to 
        the public and shall publish in the Federal Register a ``notice 
        of availability'' concerning the proposed expansion plan.

    (d) Key Elements of Proposed Expansion Plan.--
            (1) Joint report.--Not later than 45 days after the date of 
        the enactment of this Act, the Secretaries shall submit to 
        Congress a joint report that identifies the key elements of the 
        proposed expansion plan.
            (2) Lands withdrawal and reservation.--The proposed 
        expansion plan shall include the withdrawal and reservation of 
        an appropriate amount of public lands for--
                    (A) the conduct of combined arms military training 
                at the National Training Center;
                    (B) the development and testing of military 
                equipment at the National Training Center;
                    (C) other defense-related purposes; and
                    (D) conservation and research purposes.
            (3) Conservation measures.--The proposed expansion plan 
        shall also include a general description of conservation 
        measures, anticipated to cost approximately $75,000,000, that 
        may be necessary and appropriate to protect and promote the 
        conservation of the desert tortoise and other endangered or 
        threatened species and their critical habitats in designated 
        wildlife management areas in the West Mojave Desert. The 
        conservation measures may include--

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

                    (A) the establishment of one or more research 
                natural areas, which may include lands both within and 
                outside the National Training Center;
                    (B) the acquisition of private and State lands 
                within the wildlife management areas in the West Mojave 
                Desert;
                    (C) the construction of barriers, fences, and other 
                structures that would promote the conservation of 
                endangered or threatened species and their critical 
                habitats;
                    (D) the funding of research studies; and
                    (E) other conservation measures.

    (d) Preliminary Review of Expansion Plan.--
            (1) Review required.--Not later than 90 days after the date 
        of the enactment of this Act, the Director of the United States 
        Fish and Wildlife Service shall submit to the Secretaries a 
        preliminary review of the proposed expansion plan (as developed 
        as of that date). In the preliminary review, the Director shall 
        identify, with as much specificity as possible, an approach for 
        implementing the proposed expansion plan consistent with the 
        Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.).
            (2) Relation to formal review.--The preliminary review under 
        paragraph (1) shall not constitute a formal consultation under 
        section 7 of the Endangered Species Act of 1973 (16 U.S.C. 
        1536), but shall be used to assist the Secretaries in more 
        precisely defining the nature and scope of an expansion plan for 
        the National Training Center that is likely to satisfy 
        requirements of the Endangered Species Act of 1973 and to 
        expedite the formal consultation process under section 7 of such 
        Act.
            (3) Consideration of preliminary review.--In preparing the 
        proposed expansion plan, the Secretaries shall take into account 
        the content of the preliminary review by the Director of the 
        United States Fish and Wildlife Service under paragraph (1).

    (e) Draft Legislation.--The Secretaries shall submit to Congress 
with the proposed expansion plan a draft of proposed legislation 
providing for the withdrawal and reservation of public lands for the 
expansion of the National Training Center. It is the sense of the 
Congress that the proposed legislation should contain a provision that, 
if enacted, would prohibit ground-disturbing military use of the land to 
be withdrawn and reserved by the legislation until the Secretaries have 
certified that there has been full compliance with the appropriate 
provisions of the legislation, the Endangered Species Act of 1973, the 
National Environmental Policy Act of 1969, and other applicable laws.
    (f ) Consultation Under Endangered Species Act of 1973.--The 
Secretaries shall initiate the formal consultation required under 
section 7 of the Endangered Species Act of 1973 (16 U.S.C. 1536) with 
respect to expansion of the National Training Center as soon as 
practicable and shall complete such consultation not later than 2 years 
after the date of the enactment of this Act.
    (g) Environmental Review.--Not later than 6 months following 
completion of the formal consultation required under section 7 of the 
Endangered Species Act of 1973 with respect to expansion of the National 
Training Center, the Secretaries shall complete any analysis required 
under the National Environmental Policy Act of 1969 with respect to the 
proposed expansion of the National Training Center. The analysis shall 
be coordinated, to the extent

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

practicable and appropriate, with the review of the West Mojave 
Coordinated Management Plan that, as of the date of the enactment of 
this Act, is being undertaken by the Bureau of Land Management.
    (h) Funding.--
            (1) Implementation of conservation measures.--There are 
        authorized to be appropriated $75,000,000 to the Secretary of 
        the Army for the implementation of conservation measures 
        necessary for the final expansion plan for the National Training 
        Center to comply with the Endangered Species Act of 1973.
            (2) Implementation of section.--The amounts of $2,500,000 
        for ``Operation and Maintenance, Army'' and $2,500,000 for 
        ``Management of Lands and Resources, Bureau of Land Management'' 
        are hereby appropriated to the Secretary of the Army and the 
        Secretary of the Interior, respectively, only to undertake and 
        complete on an expedited basis the activities specified in this 
        section.

                                CHAPTER 4

                   DISTRICT OF COLUMBIA FEDERAL FUNDS

           Federal Payment to the District of Columbia Courts

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

                    General Provisions--This Chapter

    Sec. 401. (a) Section 106(b) of the District of Columbia Public 
Works Act of 1954 (sec. 43-1552(b), D.C. Code), as amended by section 
133 of the District of Columbia Appropriations Act, 1990, is amended--
            (1) in the third sentence of paragraph (1), by striking 
        ``United States Treasury and'' and all that follows through ``by 
        the''; and
            (2) by adding at the end the following new paragraph:

    ``(5) Not later than the 15th day of the month following each 
quarter (beginning with the first quarter of fiscal year 2001), the 
inspector general of each Federal department, establishment, or agency 
receiving water services from the District of Columbia shall submit a 
report to the Committees on Appropriations of the House of 
Representatives and Senate analyzing the promptness of payment with 
respect to the services furnished to such department, establishment, or 
agency.''.
    (b) Section 212(b) of the District of Columbia Public Works Act of 
1954 (sec. 43-1612(b), D.C. Code), as amended by section 133 of the 
District of Columbia Appropriations Act, 1990, is amended--

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

            (1) in the third sentence of paragraph (1), by striking 
        ``United States Treasury and'' and all that follows through ``by 
        the''; and
            (2) by adding at the end the following new paragraph:

    ``(5) Not later than the 15th day of the month following each 
quarter (beginning with the first quarter of fiscal year 2001), the 
inspector general of each Federal department, establishment, or agency 
receiving sanitary sewer services from the District of Columbia shall 
submit a report to the Committees on Appropriations of the House of 
Representatives and Senate analyzing the promptness of payment with 
respect to the services furnished to such department, establishment, or 
agency.''.
    (c) The amendments made by this section shall take effect as if 
included in the enactment of section 133 of the District of Columbia 
Appropriations Act, 1990.
    Sec. 402. (a) The Act entitled ``An Act donating certain Lots in the 
City of Washington for Schools for Colored Children in the District of 
Columbia'', approved July 28, 1866 (14 Stat. 343), is amended by 
striking the second sentence.
    (b) Section 319 of the Revised Statutes of the United States 
relating to the District of Columbia and Post Roads (sec. 31-206, D.C. 
Code) is repealed.
    Sec. 403. Restrictions on Use of Annual Unobligated Balance in D.C. 
Crime Victims Compensation Fund. (a) In General.--Section 16(d) of the 
Victims of Violent Crime Compensation Act of 1996 (sec. 3-435(d), D.C. 
Code), as added by section 160(d) of the District of Columbia 
Appropriations Act, 2000, is amended to read as follows:
    ``(d) Any unobligated balance existing in the Fund in excess of 
$250,000 as of the end of each fiscal year (beginning with fiscal year 
2000) may be used only in accordance with a plan developed by the 
District of Columbia and approved by the Committees on Appropriations of 
the Senate and House of Representatives, the Committee on Government 
Reform of the House of Representatives, and the Committee on 
Governmental Affairs of the Senate, and not less than 80 percent of such 
balance shall be used for direct compensation payments to crime victims 
through the Fund under this section and in accordance with this Act.''.
    (b) Effective Date.--The amendment made by subsection (a) shall take 
effect September 30, 2000.
    Sec. 404. (a) Notwithstanding any provision of the District of 
Columbia Appropriations Act, 2001, the District of Columbia may fund the 
programs identified under the heading ``Reserve'' in H.R. 4942, One 
Hundred Sixth Congress, as introduced, subject to the conditions 
described under such heading and upon certification by the District of 
Columbia Financial Responsibility and Management Assistance Authority to 
the Committees on Appropriations of the Senate and House of 
Representatives that the Chief Financial Officer of the District of 
Columbia, the Mayor of the District of Columbia, and the Council of the 
District of Columbia have identified and implemented such spending 
reductions as may be necessary to ensure that the District of Columbia 
will not have a budget deficit for fiscal year 2001.
    (b)(1) Notwithstanding any provision of the District of Columbia 
Appropriations Act, 2001, the use by the District of the funds described 
in paragraph (2) for Pay-As-You-Go Capital Funds shall be optional.

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

    (2) The funds described in this paragraph are funds set aside for 
the reserve established by section 202( j) of the District of Columbia 
Financial Responsibility and Management Assistance Act of 1995 (as 
amended by section 148 of the District of Columbia Appropriations Act, 
2000) which are not used for purposes of any reserve funds established 
under the District of Columbia Appropriations Act, 2001, or any 
amendments made by such Act.
    (c)(1) The Mayor of the District of Columbia shall deposit the 
annual interest savings resulting from debt reductions using the 
proceeds of the tobacco securitization program into the emergency 
reserve fund established under section 450A of the District of Columbia 
Home Rule Act (as added by section 159 of the District of Columbia 
Appropriations Act, 2001).
    (2) This subsection shall apply with respect to fiscal year 2001 and 
each succeeding fiscal year until the requirements of section 450A of 
the District of Columbia Home Rule Act have been met.
    Sec. 405. (a) Notwithstanding any provision of the District of 
Columbia Appropriations Act, 2001, quarterly disbursements shall be 
calculated and paid to District of Columbia public charter schools 
during fiscal year 2001 in accordance with section 107a(b) of the 
Uniform Per Student Funding Formula for Public Schools and Public 
Charter Schools and Tax Conformity Clarification Amendment Act of 1998 
(sec. 31-2906.1(b), D.C. Code), as amended by the Enrollment Integrity 
Act.
    Sec. 406. (a) The provisions of H.R. 5547 (as enacted into law by 
H.R. 4942 of the 106th Congress) are repealed and shall be deemed for 
all purposes (including section 1(b) of H.R. 4942) to have never been 
enacted.
    (b) The repeal made by this section shall take effect as if included 
in H.R. 4942 of the 106th Congress on the date of its enactment.

                                CHAPTER 5

                      ENERGY AND WATER DEVELOPMENT

                      DEPARTMENT OF DEFENSE--CIVIL

                         DEPARTMENT OF THE ARMY

                        Corps of Engineers--Civil

                         general investigations

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

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

                          construction, general

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

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

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

                       DEPARTMENT OF THE INTERIOR

                          Bureau of Reclamation

                       water and related resources

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

                          DEPARTMENT OF ENERGY

                             ENERGY PROGRAMS

                              Energy Supply

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

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

                                 Science

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

                                CHAPTER 6

                    General Provisions--This Chapter

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

                                CHAPTER 7

                       DEPARTMENT OF THE INTERIOR

                        Bureau of Land Management

                            land acquisition

    For an additional amount for ``Land Acquisition'', $5,000,000, to be 
derived from the Land and Water Conservation Fund and to remain 
available until expended, to carry out the provisions of title VI of the 
Steens Mountain Cooperative Management and Protection Act (Public Law 
106-399): Provided, That sums necessary to complete the individual land 
exchanges identified under title VI shall be provided within 30 days of 
each land exchange.

                 United States Fish and Wildlife Service

                           resource management

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

                 multinational species conservation fund

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

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

                          National Park Service

                  operation of the national park system

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

                  national recreation and preservation

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

                       historic preservation fund

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

                              construction

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

                          DEPARTMENT OF ENERGY

                           Energy Conservation

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

                             RELATED AGENCY

            Woodrow Wilson International Center for Scholars

                        payment to endowment fund

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

                     General Provision--This Chapter

    Sec. 701. In addition to amounts appropriated in Public Law 106-291 
to the Indian Health Service under the heading ``Indian

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

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

                                CHAPTER 8

                    General Provisions--This Chapter

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

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

                                CHAPTER 9

                           LEGISLATIVE BRANCH

                        CONGRESSIONAL OPERATIONS

                        HOUSE OF REPRESENTATIVES

      Payments to Widows and Heirs of Decreased Members of Congress

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

                        ARCHITECT OF THE CAPITOL

                      Capitol Buildings and Grounds

                            capitol buildings

                          salaries and expenses

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

                           LIBRARY OF CONGRESS

                          Salaries and Expenses

    For the Library of Congress, $25,000,000, to remain available until 
expended, for necessary salaries and expenses of the National Digital 
Information Infrastructure and Preservation Program; and an additional 
$75,000,000, to remain available until expended, for such purposes: 
Provided, That the portion of such additional $75,000,000, which may be 
expended shall not exceed an amount equal to the matching contributions 
(including contributions other than money) for such purposes that: (1) 
are received by the Librarian of Congress for the program from non-
Federal sources; and (2) are received before March 31, 2003: Provided 
further, That such program shall be carried out in accordance with a 
plan or plans approved by the Committee on House Administration of the 
House of Representatives, the Committee on Rules and Administration of 
the Senate, the Committee on Appropriations of the House of 
Representatives, and the Committee on Appropriations of the Senate: 
Provided further, That of the total amount appropriated, $5,000,000 may 
be expended before the approval of a plan to develop such a plan, and to 
collect or preserve essential digital information which otherwise would 
be uncollectible: Provided further, That the

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

balance in excess of such $5,000,000 shall not be expended without 
approval in advance by the Committee on Appropriations of the House of 
Representatives and the Committee on Appropriations of the Senate: 
Provided further, That the plan under this heading shall be developed by 
the Librarian of Congress jointly with entities of the Federal 
Government with expertise in telecommunications technology and 
electronic commerce policy (including the Secretary of Commerce and the 
Director of the White House Office of Science and Technology Policy) and 
the National Archives and Records Administration, and with the 
participation of representatives of other Federal, research, and private 
libraries and institutions with expertise in the collection and 
maintenance of archives of digital materials (including the National 
Library of Medicine, the National Agricultural Library, the National 
Institute of Standards and Technology, the Research Libraries Group, the 
Online Computer Library Center, and the Council on Library and 
Information Resources) and representatives of private business 
organizations which are involved in efforts to preserve, collect, and 
disseminate information in digital formats (including the Open e-Book 
Forum): Provided further, That notwithstanding any other provision of 
law, effective with the One Hundred Seventh Congress and each succeeding 
Congress the chair of the Subcommittee on the Legislative Branch of the 
Committee on Appropriations of the House of Representatives shall serve 
as a member of the Joint Committee on the Library with respect to the 
Library's financial management, organization, budget development and 
implementation, and program development and administration, as well as 
any other element of the mission of the Library of Congress which is 
subject to the requirements of Federal law.

                    General Provisions--This Chapter

    Sec. 901. Retirement Credit for Certain Legislative Branch 
Employees. (a) Former Employees of Congressional Campaign Committees.--
            (1) CSRS.--Section 8332(m) of title 5, United States Code, 
        as amended by section 312 of the Legislative Branch 
        Appropriations Act, 2000, is amended--
                    (A) by redesignating paragraphs (2) and (3) as 
                paragraphs (3) and (4), respectively; and
                    (B) by inserting after paragraph (1) the following 
                new paragraph:

    ``(2) Upon application to the Office of Personnel Management, any 
individual who was an employee on the date of enactment of this 
paragraph, and who has on such date or thereafter acquires 5 years or 
more of creditable civilian service under this section (exclusive of 
service for which credit is allowed under this subsection) shall be 
allowed credit (as service as a congressional employee) for service 
before December 31, 1990, while employed by the Democratic Senatorial 
Campaign Committee, the Republican Senatorial Campaign Committee, the 
Democratic National Congressional Committee, or the Republican National 
Congressional Committee, if--
            ``(A) such employee has at least 4 years and 6 months of 
        service on such committees as of December 31, 1990; and
            ``(B) such employee makes a deposit to the Fund in an amount 
        equal to the amount which would be required under

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

        section 8334(c) if such service were service as a congressional 
        employee.''.
            (2) FERS.--Section 8411 of title 5, United States Code, is 
        amended by adding at the end the following new subsection:

    ``(i)(1) Upon application to the Office of Personnel Management, any 
individual who was an employee on the date of enactment of this 
paragraph, and who has on such date or thereafter acquired 5 years or 
more of creditable civilian service under this section (exclusive of 
service for which credit is allowed under this subsection) shall be 
allowed credit (as service as a congressional employee) for service 
before December 31, 1990, while employed by the Democratic Senatorial 
Campaign Committee, the Republican Senatorial Campaign Committee, the 
Democratic National Congressional Committee, or the Republican National 
Congressional Committee, if--
            ``(A) such employee has at least 4 years and 6 months of 
        service on such committees as of December 31, 1990; and
            ``(B) such employee deposits to the Fund an amount equal to 
        1.3 percent of the base pay for such service, with interest.

    ``(2) The Office shall accept the certification of the President of 
the Senate (or the President's designee) or the Speaker of the House of 
Representatives (or the Speaker's designee), as the case may be, 
concerning the service of, and the amount of compensation received by, 
an employee with respect to whom credit is to be sought under this 
subsection.
    ``(3) An individual shall not be granted credit for such service 
under this subsection if eligible for credit under section 8332(m) for 
such service.''.
    (b) Former Employees of Legislative Service Organizations.--
            (1) Service of employees of legislative service 
        organizations.--
                    (A) In general.--Subject to succeeding provisions of 
                this paragraph, upon application to the Office of 
                Personnel Management in such form and manner as the 
                Office shall prescribe, any individual who performed 
                service as an employee of a legislative service 
                organization of the House of Representatives (as defined 
                and authorized in the One Hundred Third Congress)
and whose pay was paid in whole or in part by a source other than the 
Clerk Hire account of a Member of the House of Representatives (other 
than an individual described in paragraph (6)) shall be entitled--
                          (i) to receive credit under the provisions of 
                      subchapter III of chapter 83 or chapter 84 of 
                      title 5, United States Code (whichever would be 
                      appropriate), as congressional employee service, 
                      for all such service; and
                          (ii) to have all pay for such service which 
                      was so paid by a source other than the Clerk Hire 
                      account of a Member included (in addition to any 
                      amounts otherwise included in basic pay) for 
                      purposes of computing an annuity payable out of 
                      the Civil Service Retirement and Disability Fund.
                    (B) Deposit requirement.--In order to be eligible 
                for the benefits described in subparagraph (A), an 
                individual shall be required to pay into the Civil 
                Service Retirement

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

                and Disability Fund an amount equal to the difference 
                between--
                          (i) the employee contributions that were 
                      actually made to such Fund under applicable 
                      provisions of law with respect to the service 
                      described in subparagraph (A); and
                          (ii) the employee contributions that would 
                      have been required with respect to such service if 
                      the amounts described in subparagraph (A)(ii) had 
                      also been treated as basic pay.
                The amount required under this subparagraph shall 
                include interest, which shall be computed under section 
                8334(e) of title 5, United States Code.
                    (C) Certain offsets required in order to prevent 
                double contributions and benefits.--In the case of any 
                period of service as an employee of a legislative 
                service organization which constituted employment for 
                purposes of title II of the Social Security Act--
                          (i) any pay for such service (as described in 
                      subparagraph (A)(ii)) with respect to which the 
                      deposit under subparagraph (B) would otherwise be 
                      computed by applying the first sentence of section 
                      8334(a)(1) of title 5, United States Code, shall 
                      instead be computed in a manner based on section 
                      8334(k) of such title; and
                          (ii) any retirement benefits under subchapter 
                      III of chapter 83 of title 5, United States Code, 
                      shall be subject to offset (to reflect that 
                      portion of benefits under title II of the Social 
                      Security Act attributable to pay referred to in 
                      subparagraph (A)) similar to that provided for 
                      under section 8349 of such title.
            (2) Survivor annuitants.--For purposes of survivor 
        annuities, an application authorized by this section may, in the 
        case of an individual under paragraph (1) who has died, be made 
        by a survivor of such individual.
            (3) Recomputation of annuities.--Any annuity or survivor 
        annuity payable as of when an individual makes the deposit 
        required under paragraph (1) shall be recomputed to take into 
        account the crediting of service under such paragraph for 
        purposes of amounts accruing for any period beginning on or 
        after the date on which the individual makes the deposit.
            (4) Certification of speaker.--The Office of Personnel 
        Management shall accept the certification of the Speaker of the 
        House of Representatives (or the Speaker's designee) concerning 
        the service of, and the amount of compensation received by, an 
        employee with respect to whom credit is to be sought under this 
        subsection.
            (5) Notification and other duties of the office of personnel 
        management.--
                    (A) Notice.--The Office of Personnel Management 
                shall take such action as may be necessary and 
                appropriate to inform individuals of any rights they 
                might have as a result of enactment of this subsection.
                    (B) Assistance.--The Office shall, on request, 
                assist any individual in obtaining from any department, 
                agency, or other instrumentality of the United States 
                any information in the possession of such 
                instrumentality which may

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

                be necessary to verify the entitlement of such 
                individual to have any service credited under this 
                subsection or to have an annuity recomputed under 
                paragraph (3).
                    (C) Information.--Any department, agency, or other 
                instrumentality of the United
States which possesses any information with respect to an individual's 
performance of any service described in paragraph (1) shall, at the 
request of the office, furnish such information to the Office.
            (6) Exclusion of certain employees.--An individual is not 
        eligible for credit under this subsection if the individual 
        served as an employee of the House of Representatives for an 
        aggregate period of 5 years or longer after the individual's 
        final period of service as an employee of a legislative service 
        organization of the House of Representatives.
            (7) Member defined.--In this subsection, the term ``Member 
        of the House of Representatives'' includes a Delegate or 
        Resident Commissioner to Congress.

    Sec. 902. (a) The Legislative Branch Appropriations Act, 2001 is 
amended under the subheading ``miscellaneous items'' under the heading 
``SENATE'' under title I by striking ``$8,655,000'' and inserting 
``$25,155,000''.
    (b) The amendment made by subsection (a) shall take effect as if 
included in the enactment of the Legislative Branch Appropriations Act, 
2001.
    Sec. 903. Beginning on the first day of the 107th Congress, the 
Presiding Officer of the Senate shall apply all of the precedents of the 
Senate under Rule XXVIII in effect at the conclusion of the 103d 
Congress. Further that there is now in effect a Standing order of the 
Senate that the reading of conference reports is no longer required, if 
the said conference report is available in the Senate.

                               CHAPTER 10

                    General Provisions--This Chapter

    Sec. 1001. In addition to amounts appropriated or otherwise made 
available in the Military Construction Appropriations Act, 2001, 
$43,500,000 is hereby appropriated to the Department of Defense, to 
remain available until September 30, 2005, as follows:
            ``Military Construction, Army'', $27,000,000;
            ``Military Construction, Air Force'', $12,000,000;
            ``Military Construction, Army National Guard'', $4,500,000:

Provided, That notwithstanding any other provision of law, such funds 
may be obligated or expended to carry out planning and design, military 
construction, and family housing projects not otherwise authorized by 
law.
    Sec. 1002. Transfer of Jurisdiction, Melrose Air Force Range, New 
Mexico. (a) Transfer Required.--(1) The Secretary of the Interior shall 
transfer, without reimbursement, to the administrative jurisdiction of 
the Secretary of the Air Force the surface estate in the real property 
described in paragraph (2), which consists of 6,713.90 acres of public 
domain lands in Roosevelt County, New Mexico.
    (2) The transfer of administrative jurisdiction under paragraph (1) 
encompasses the following sections (or portions thereof):

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

            (A) In Township 1 North, Range 30 East, New Mexico Prime 
        Meridian:
                    (i) Sec. 2 (S\1/2\).
                    (ii) Sec. 11. All.
                    (iii) Sec. 20 (S\1/2\SE\1/4\).
                    (iv) Sec. 28. All.
            (B) In Township 1 South, Range 30 East, New Mexico Prime 
        Meridian:
                    (i) Sec. 2 (Lots 1-12, S\1/2\).
                    (ii) Sec. 3 (Lots 1-12, S\1/2\).
                    (iii) Sec. 4 (Lots 1-12, S\1/2\).
                    (iv) Sec. 6 (Lots 1 and 2).
                    (v) Sec. 9 (N\1/2\, N\1/2\S\1/2\).
                    (vi) Sec. 10 (N\1/2\, N\1/2\S\1/2\).
                    (vii) Sec. 11 (N\1/2\, N\1/2\S\1/2\).
            (C) In Township 2 North, Range 30 East, New Mexico Prime 
        Meridian:
                    (i) Sec. 20 (E\1/2\S\1/4\).
                    (ii) Sec. 21 (SW\1/4\, W\1/2\SE\1/4\).
                    (iii) Sec. 28 (W\1/2\E\1/2\, W\1/2\).
                    (iv) Sec. 29 (E\1/2\E\1/2\).
                    (v) Sec. 32 (E\1/2\E\1/2\).
                    (vi) Sec. 33 (W\1/2\E\1/2\, NW\1/4\, S\1/2\SW\1/4\).

    (b) Status of Surface Estate.--Upon transfer under subsection (a), 
the surface estate is deemed to be real property subject to the Federal 
Property and Administrative Services Act of 1949 (40 U.S.C. 471 et 
seq.).
    (c) Withdrawal of Mineral Estate.--Subject to valid existing rights, 
the mineral estate of the lands described in subsection (a) are 
withdrawn from all forms of appropriation under the public land laws, 
including the mining laws and the mineral and geothermal leasing laws, 
but not the Act of July 31, 1947 (commonly known as the Materials Act of 
1947; 30 U.S.C. 601 et seq.).
    (d) Use of Mineral Materials.--Notwithstanding subsection (c) or the 
Act of July 31, 1947, the Secretary of the Air Force may use, without 
application to the Secretary of the Interior, the sand, gravel, or 
similar mineral material resources on the lands described in subsection 
(a), of the type subject to disposition under the Act of July 31, 1947, 
when the use of such resources is required for construction needs on the 
Melrose Air Force Range, New Mexico.
    Sec. 1003. Transfer of Jurisdiction, Yakima Training Center, 
Washington. (a) Transfer Required.--(1) The Secretary of the Interior 
shall transfer, without reimbursement, to the administrative 
jurisdiction of the Secretary of the Army the surface estate in the real 
property described in paragraph (2), which consists of 6,640.02 acres of 
public domain lands in Kittitas County, Washington.
    (2) The transfer of administrative jurisdiction under paragraph (1) 
encompasses the following sections (or portions thereof):
            (A) In Township 17 North, Range 20 East, Willamette 
        Meridian:
                    (i) Sec. 22 (S\1/2\).
                    (ii) Sec. 24 (S\1/2\SW\1/4\ and that portion of the 
                E\1/2\ lying south of the Interstate Highway 90 right-
                of-way).
                    (iii) Sec. 26. All.
            (B) In Township 16 North, Range 21 East, Willamette 
        Meridian:

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

                    (i) Sec. 4 (SW\1/4\SW\1/4\).
                    (ii) Sec. 12 (SE\1/4\).
                    (iii) Sec. 18 (Lots 1, 2, 3, and 4, E\1/2\ and E\1/
                2\W\1/2\).
            (C) In Township 17 North, Range 21 East, Willamette 
        Meridian:
                    (i) Sec. 30 (Lots 3 and 4).
                    (ii) Sec. 32 (NE\1/4\SE\1/4\).
            (D) In Township 16 North, Range 22 East, Willamette 
        Meridian:
                    (i) Sec. 2 (Lots 1, 2, 3, and 4, S\1/2\N\1/2\ and 
                S\1/2\).
                    (ii) Sec. 4 (Lots 1, 2, 3, and 4, S\1/2\N\1/2\ and 
                S\1/2\).
                    (iii) Sec. 10. All.
                    (iv) Sec. 14. All.
                    (v) Sec. 20 (SE\1/4\SW\1/4\).
                    (vi) Sec. 22. All.
                    (vii) Sec. 26 (N\1/2\).
                    (viii) Sec. 28 (N\1/2\).
            (E) In Township 16 North, Range 23 East, Willamette 
        Meridian:
                    (i) Sec. 18 (Lots 3 and 4, E\1/2\SW\1/4\, W\1/
                2\SE\1/4\, and that portion of the E\1/2\SE\1/4\ lying 
                westerly of the westerly right-of-way line of Huntzinger 
                Road).
                    (ii) Sec. 20 (That portion of the SW\1/4\ lying 
                westerly of the easterly right-of-way line of the 
                railroad).
                    (iii) Sec. 30 (Lots 1 and 2, NE\1/4\ and E\1/2\NW\1/
                4\).

    (b) Status of Surface Estate.--Upon transfer under subsection (a), 
the surface estate is deemed to be real property subject to the Federal 
Property and Administrative Services Act of 1949 (40 U.S.C. 471 et 
seq.).
    (c) Withdrawal of Mineral Estate.--(1) Subject to valid existing 
rights, the mineral estate of the lands described in subsection (a), as 
well as the additional lands described in paragraph (2), are withdrawn 
from all forms of appropriation under the public land laws, including 
the mining laws and the geothermal leasing laws, but not the Act of July 
31, 1947 (commonly known as the Materials Act of 1947; 30 U.S.C. 601, et 
seq.) and the Mineral Leasing Act (30 U.S.C. 181 et seq.).
    (2) The additional lands referred to in paragraph (1) consist of 
3,090.80 acres in the following sections (or portions thereof):
            (A) In Township 16 North, Range 20 East, Willamette 
        Meridian:
                    (i) Sec. 12. All.
                    (ii) Sec. 18 (Lot 4 and SE\1/4\).
                    (iii) Sec. 20 (S\1/2\).
            (B) In Township 16 North, Range 21 East, Willamette 
        Meridian:
                    (i) Sec. 4 (Lots 1, 2, 3, and 4, S\1/2\NE\1/4\).
                    (ii) Sec. 8. All.
            (C) In Township 16 North, Range 22 East, Willamette 
        Meridian:
                    (i) Sec. 12. All.
            (D) In Township 17 North, Range 21 East, Willamette 
        Meridian:
                    (i) Sec. 32 (S\1/2\SE\1/4\).
                    (ii) Sec. 34 (W\1/2\).

    (d) Use of Mineral Materials.--Notwithstanding subsection (c) or the 
Act of July 31, 1947, the Secretary of the Army may

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

use, without application to the Secretary of the Interior, the sand, 
gravel, or similar mineral material resources on the lands described in 
subsections (a) and (c), of the type subject to disposition under the 
Act of July 31, 1947, when the use of such resources is required for 
construction needs on the Yakima Training Center, Washington.

                               CHAPTER 11

                      DEPARTMENT OF TRANSPORTATION

                    General Provisions--This Chapter

    Sec. 1101. Section 5309(g)(4)(D)(2) of title 49, United States Code, 
is amended by striking ``light''.
    Sec. 1102. Item number 630 of the table contained in section 1602 of 
the Transportation Act for the 21st Century (112 Stat. 280), relating to 
Buffalo, New York, is amended by striking ``Design and construct Outer 
Harbor Bridge in Buffalo'' and inserting ``Transportation infrastructure 
improvements, Inner Harbor/Redevelopment project, Buffalo''.
    Sec. 1103. If the State of Arkansas incorporates into the relocation 
of U.S. Route 71 through Fort Chaffee, Arkansas, land obtained by the 
State from the Federal Government as a result of the closure of a 
military installation, the Secretary of Transportation shall credit to 
the State share of the cost of the relocation the fair market value of 
such land .
    Sec. 1104. For an additional amount to enable the Secretary of 
Transportation to make a grant to the Huntsville International Airport, 
$2,500,000, to be derived from the airport and airway trust fund, to 
remain available until expended.
    Sec. 1105. Notwithstanding any other provision of law, for necessary 
expenses for the Southeast Light Rail Extension Project in Dallas, 
Texas, $1,000,000, to be derived from the Mass Transit Account of the 
Highway Trust Fund and to remain available until expended.
    Sec. 1106. Section 1105(c) of the Intermodal Surface Transportation 
Efficiency Act of 1991 (105 Stat. 2032-2033) is amended by striking 
paragraph (38) and replacing it with the following--
            ``(38) The Ports-to-Plains Corridor from Laredo, Texas, via 
        I-27 to Denver, Colorado, shall include:
                    ``(A) In the State of Texas the Ports-to-Plains 
                Corridor shall generally follow--
                          ``(i) I-35 from Laredo to United States Route 
                      83 at Exit 18;
                          ``(ii) United States Route 83 from Exit 18 to 
                      Carrizo Springs;
                          ``(iii) United States Route 277 from Carrizo 
                      Springs to San Angelo;
                          ``(iv) United States Route 87 from San Angelo 
                      to Sterling City;
                          ``(v) From Sterling City to Lamesa, the 
                      Corridor shall follow United States Route 87 and, 
                      the Corridor shall also follow Texas Route 158 
                      from Sterling City to I-20, then via I-20 West to 
                      Texas Route 349 and, Texas Route 349 from Midland 
                      to Lamesa;
                          ``(vi) United States Route 87 from Lamesa to 
                      Lubbock;

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

                          ``(vii) I-27 from Lubbock to Amarillo; and
                          ``(viii) United States Route 287 from Amarillo 
                      to Dumas.
                    ``(B) The corridor designation contained in 
                paragraph (A) shall take effect only if the Texas 
                Transportation Commission has not designated the Ports-
                to-Plains Corridor in Texas by June 30, 2001.''.

    Sec. 1107. For an additional amount to enable the Secretary of 
Transportation to make a grant for the Newark-Elizabeth rail link 
project, New Jersey, $3,000,000, to be derived from the Mass Transit 
Account of the Highway Trust Fund and to remain available until 
expended.
    Sec. 1108. Section 5309(m)(3)(C) of title 49 United States Code, 
shall not apply to the funds made available in the Department of 
Transportation and Related Agencies Appropriations Act, 2001: Provided, 
That notwithstanding any other provision of law, the 14th Street Bridge, 
Virginia; Chouteau Bridge, Jackson County, Missouri; Clement C. Clay 
Bridge replacement, Morgan/Madison counties, Alabama; Fairfield-Benton-
Kennebec River Bridge, Maine; Florida Memorial Bridge, Florida; Historic 
Woodrow Wilson Bridge, Mississippi; Missisquoi Bay Bridge, Vermont; 
Oaklawn Bridge, South Pasadena, California; Pearl Harbor Memorial Bridge 
replacement, Connecticut; Powell County Bridge, Montana; Santa Clara 
Bridge, Oxnard, California; Star City Bridge, West Virginia; US 231 
Bridge over Tennessee River, Alabama; US 54/US 69 Bridge, Kansas; 
Waimalu Bridge replacement on I-1, Hawaii; Washington Bridge, Rhode 
Island are eligible in fiscal year 2001 under section 144(g)(2) of title 
23, United States Code: Provided further, That section 378 of Public Law 
106-346 is amended by inserting after ``US 101'' the following: ``and 
Interstate 5 Trade Corridor''.
    Sec. 1109. Notwithstanding any other provision of law, in addition 
to funds otherwise appropriated in this or any other Act for fiscal year 
2001, $4,000,000 is hereby appropriated from the Highway Trust Fund for 
Commercial Remote Sensing Products and Spatial Information Technologies 
under section 5113 of Public Law 105-178, as amended: Provided, That 
such funds are used to study the creation of a new highway right-of-way 
south of I-10 along the Mississippi Gulf Coast by relocating the 
existing railroad right-of-way out of downtown areas.
    Sec. 1110. Amtrak is authorized to obtain services from the 
Administrator of General Services, and the Administrator is authorized 
to provide services to Amtrak, under sections 201(b) and 211(b) of the 
Federal Property and Administrative Services Act of 1949 (40 U.S.C. 
481(b) and 491(b)) for fiscal year 2001 and each fiscal year thereafter 
until the fiscal year that Amtrak operates without Federal operating 
grant funds appropriated for its benefit, as required by sections 
24101(d) and 24104(a) of title 49, United States Code.
    Sec. 1111. Of the funds made available in the ``Alteration of 
bridges'' account of the Department of Transportation and Related 
Agencies Appropriations Act, 2001 for the Fox River Bridge, $575,000 
shall be transferred by the Secretary of Transportation to the City of 
Oshkosh for removal of the bridge located at mile point 56.9 of the Fox 
River in Oshkosh, Wisconsin. The United States shall assume no 
responsibility for project management relating to removal of the bridge.

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

    Sec. 1112. Notwithstanding section 27 of the Merchant Marine Act, 
1920 (46 App. U.S.C. 883), section 8 of the Act of June 19, 1886 (46 
App. U.S.C. 289), and section 12106 of title 46, United States Code, the 
Secretary of Transportation may issue a certificate of documentation 
with appropriate endorsement for employment in the coastwise trade for 
the following vessels:
            (1) M/V WELLS GRAY (State of Alaska registration number AK 
        9452 N; former Canadian registration number 154661); and
            (2) ANNANDALE (United States official number 519434).

    Sec. 1113. Conveyance of Coast Guard Property in Middletown, 
California. (a) Authority To Convey.--
            (1) In general.--The Administrator of General Services (in 
        this section referred to as the ``Administrator'') may promptly 
        convey to Lake County, California (in this section referred to 
        as the ``County''), without consideration, all right, title, and 
        interest of the United States (subject to subsection (c)) in and 
        to the property described in subsection (b).
            (2) Identification of property.--The Administrator, in 
        consultation with the Commandant of the Coast Guard, may 
        identify, describe, and determine the property to be conveyed 
        under this section.

    (b) Property Described.--
            (1) In general.--The property referred to in subsection (a) 
        is such portion of the Coast Guard LORAN Station Middletown as 
        has been reported to the General Services Administration to be 
        excess property, consisting of approximately 733.43 acres, and 
        is comprised of all or part of tracts A-101, A-102, A-104, A-
        105, A-106, A-107, A-108, and A-111.
            (2) Survey.--The exact acreage and legal description of the 
        property conveyed under subsection (a), and any easements or 
        rights-of-way reserved by the United States under subsection 
        (c)(1), shall be determined by a survey satisfactory to the 
        Administrator. The cost of the survey shall be borne by the 
        County.

    (c) Conditions.--
            (1) In general.--In making the conveyance under subsection 
        (a), the Administrator shall--
                    (A) reserve for the United States such existing 
                rights-of-way for access and such easements as are 
                necessary for continued operation of the LORAN station;
                    (B) preserve other existing easements for public 
                roads and highways, public utilities, irrigation 
                ditches, railroads, and pipelines; and
                    (C) impose such other restrictions on use of the 
                property conveyed as are necessary to
protect the safety, security, and continued operation of the LORAN 
station.
            (2) Firebreaks and fence.--(A) The Administrator may not 
        convey any property under this section unless the County and the 
        Commandant of the Coast Guard enter into an agreement with the 
        Administrator under which the County is required, in accordance 
        with design specifications and maintenance standards established 
        by the Commandant--
                    (i) to establish and construct within 6 months after 
                the date of the conveyance, and thereafter to maintain, 
                firebreaks on the property to be conveyed; and

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

                    (ii) construct within 6 months after the date of 
                conveyance, and thereafter maintain, a fence approved by 
                the Commandant along the property line between the 
                property conveyed and adjoining Coast Guard property.
            (B) The agreement shall require that--
                    (i) the County shall pay all costs of establishment, 
                construction, and maintenance of firebreaks under 
                subparagraph (A)(i); and
                    (ii) the Commandant shall provide all materials 
                needed to construct a fence under subparagraph (A)(ii), 
                and the County shall pay all other costs of construction 
                and maintenance of the fence.
            (3) Covenants appurtenant.--The Administrator shall take 
        actions necessary to render the requirement to establish, 
        construct, and maintain firebreaks and a fence under paragraph 
        (2) and other requirements and conditions under paragraph (1), 
        under the deed conveying the property to the County, covenants 
        that run with the land for the benefit of land retained by the 
        United States.

    (d) Reversionary Interest.--During the 5-year period beginning on 
the date the Administrator makes the conveyance authorized by subsection 
(a), the real property conveyed pursuant to this section, at the option 
of the Administrator, shall revert to the United States and be placed 
under the administrative control of the Administrator, if--
            (1) the County sells, conveys, assigns, exchanges, or 
        encumbers the property conveyed or any part thereof;
            (2) the County fails to maintain the property conveyed in a 
        manner consistent with the terms and conditions in subsection 
        (c);
            (3) the County conducts any commercial activities at the 
        property conveyed, or any part thereof, without approval of the 
        Secretary; or
            (4) at least 30 days before the reversion, the Administrator 
        provides written notice to the owner that the property or any 
        part thereof is needed for national security purposes.

    Sec. 1114. Conveyance of Coast Guard Property to Town of Nantucket, 
Massachusetts. (a) Authority To Convey.--
            (1) In general.--Notwithstanding any other law, the 
        Administrator of the General Services Administration 
        (Administrator) or the Commandant of the Coast Guard 
        (Commandant), as appropriate, shall convey to the Town of 
        Nantucket, Massachusetts (Town), without monetary consideration, 
        all right, title, and interest of the United States of America 
        (United States) in and to a certain parcel of land located in 
        Nantucket, Massachusetts, and part of the United States Coast 
        Guard LORAN Station Nantucket, together with any improvements 
        thereon in their then current condition.
            (2) Identification of property.--The Administrator or the 
        Commandant, as appropriate, shall identify, describe, and 
        determine the property to be conveyed under this section. The 
        Town shall bear all monetary costs associated with any survey 
        required to describe the property to be conveyed under this 
        section and any easements reserved by the United States under 
        subsection (b)(1).

    (b) Terms and Conditions of Conveyance.--

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

            (1) The conveyance of property under this section shall be 
        made subject to any terms and conditions the Administrator or 
        the Commandant, as appropriate, considers necessary, including 
        the reservation of easements and other rights on behalf of the 
        United States, to ensure that--
                    (A) there is reserved to the United States the right 
                to remove, relocate, or replace any aid to navigation 
                located upon, or install or construct any aid to 
                navigation upon, property conveyed under this section as 
                may be necessary for navigational purposes;
                    (B) the United States shall have the right to enter 
                property conveyed under this section at any time, 
                without notice, for purposes of operating, maintaining, 
                and inspecting any aid to navigation and for the 
                purposes of exercising any of the rights set forth in 
                paragraph (1)(A) of this subsection; and
                    (C) the Town shall not interfere or allow 
                interference, in any manner, with any aid to navigation, 
                whether located upon the property conveyed under this 
                section or upon any portion of LORAN Station Nantucket 
                retained by the United States, nor hinder activities 
                required for the inspection, operation, and maintenance 
                of any such aid to navigation without the Commandant's 
                express written permission.
            (2) The Town shall not convey, assign, exchange, or in any 
        way encumber the property conveyed under this section, unless 
        approved by the Administrator.
            (3) The Town shall not conduct any commercial activities at 
        or upon the property conveyed under this section, unless 
        approved by the Administrator.
            (4) The Town shall not be required to maintain any active 
        aid to navigation associated with the property conveyed under 
        this section except for private aids to navigation permitted 
        under 14 U.S.C. 83.
            (5) The United States shall not convey any property under 
        this section, nor grant any real property license under 
        subsection (d), until the Town enters into an agreement with the 
        United States to relocate the Coast Guard receiving antenna and 
        associated equipment, as identified by the Commandant, at the 
        Town's sole cost and expense, and subject to the Commandant's 
        design specifications, project schedule, and final project 
        approval.
            (6) The United States shall not convey any property under 
        this section, nor grant any real property license under 
        subsection (d), until the Town enters into an agreement with the 
        United States that provides that the Town will immediately cease 
        construction or operation of the waste water treatment facility 
        upon notification by the Commandant that the Town's construction 
        or operation of the facility interferes with any Coast Guard aid 
        to navigation. The agreement shall provide that construction or 
        operation shall not be resumed until the conditions causing the 
        interference are corrected, and the Commandant authorizes the 
        construction or operation to resume.
            (7) All conditions placed with the deed of title shall be 
        construed as covenants running with the land.

    (c) Reversionary Interest.--In addition to any term or condition 
established pursuant to this section, the conveyance of property

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

under this section shall include a condition that the property conveyed, 
at the option of the Administrator, shall revert to the United States 
and be placed under the administrative control of the Administrator, 
if--
            (1) the Town conveys, assigns, exchanges, or in any manner 
        encumbers the property conveyed for consideration, unless 
        otherwise approved by the Administrator;
            (2) the Town conducts any commercial activities at or upon 
        the property conveyed, unless otherwise approved by the 
        Administrator;
            (3) the Town interferes or allows interference, in any 
        manner, with any aid to navigation, whether located upon the 
        property conveyed under this section or upon any portion of 
        LORAN Station Nantucket retained by the United States, nor 
        hinder activities required for the inspection, operation, and 
        maintenance of any such aid to navigation without the 
        Commandant's express written permission; or
            (4) at least 30 days before the reversion, the Administrator 
        provides written notice to the grantee that property conveyed 
        under this section, or any portion thereof, is needed for 
        national security purposes.

    (d) Real Property License.--Prior to the conveyance of any property 
under this section, the Commandant may grant a real property license to 
the Town for the purpose of allowing the Town to enter upon LORAN 
Station Nantucket and commence construction of a waste water treatment 
facility and for other site preparation activities.
    (e) Definitions.--For purposes of this section:
            (1) Aid to navigation.--The term ``aid to navigation'' means 
        equipment used for navigation purposes, including but not 
        limited to, a light, antenna, sound signal, electronic and radio 
        navigation equipment and signals, cameras, sensors, or other 
        equipment operated or maintained by the United States.
            (2) Town.--The term ``Town'' includes the successors and 
        assigns of the Town of Nantucket, Massachusetts.

    Sec. 1115. Conveyance of Plum Island Lighthouse, Newburyport, 
Massachusetts. (a) Authority To Convey.--
            (1) In general.--Notwithstanding any other law, the 
        Administrator of the General Services Administration 
        (Administrator) or the Commandant of the Coast Guard 
        (Commandant), as appropriate, shall convey to the City of 
        Newburyport, Massachusetts
(City), without monetary consideration, all right, title, and interest 
of the United States of America (United States) in and to two certain 
parcels of land upon which the Plum Island Boat House and the Plum 
Island Lighthouse (also known as the Newburyport Harbor Light), are 
situated, respectively, located in Essex County, Massachusetts, together 
with any improvements thereon in their then current condition.
            (2) Identification of property.--The Administrator or the 
        Commandant, as appropriate, shall identify, describe, and 
        determine the property to be conveyed under this section, 
        including the right to retain all right, title, and interest of 
        the United States to any portion of either parcel described in 
        paragraph (a)(1) of this section. The Administrator or 
        Commandant, as appropriate, may retain all right, title, and 
        interest of the United States in and to any historical artifact, 
        including any lens or lantern, that is associated with and 
        located at

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

        the property conveyed under this section at the time of 
        conveyance. Artifacts associated with, but not located at, the 
        property conveyed under this section at the time of conveyance, 
        shall remain the personal property of the United States under 
        the administrative control of the Commandant. No submerged lands 
        shall be conveyed under this section.

    (b) Terms and Conditions of Conveyance.--
            (1) The conveyance of property under this section shall be 
        made subject to any terms and conditions the Administrator or 
        the Commandant, as appropriate, considers necessary, including 
        but not limited to, the reservation of easements and other 
        rights on behalf of the United States, to ensure that--
                    (A) the aids to navigation located at property 
                conveyed under this section shall remain the personal 
                property of the United States and continue to be 
                operated and maintained by the United States for as long 
                as needed for navigational purposes;
                    (B) there is reserved to the United States the right 
                to remove, relocate, or replace any aid to navigation 
                located upon, or install or construct any aid to 
                navigation upon, property conveyed under this section as 
                may be necessary for navigational purposes;
                    (C) the United States shall have the right to enter 
                property conveyed under this section at any time, 
                without notice, for purposes of operating, maintaining, 
                and inspecting any aid to navigation, for the purposes 
                of exercising any of the rights set forth in paragraph 
                (1)(B) of this subsection, and for the purposes of 
                ingress and egress to any land retained by the United 
                States; and
                    (D) the City shall not, without the Commandant's 
                express written permission, interfere or allow 
                interference, in any manner, with any aid to navigation, 
                nor hinder activities required
                          (i) for the inspection, operation, and 
                      maintenance of any aid to navigation; or
                          (ii) for the exercise of any of the rights set 
                      forth in paragraph (1)(B) of this subsection.
            (2) The City shall, at its own cost and expense, maintain 
        the property conveyed under this section in a proper, 
        substantial, and workmanlike manner.
            (3) The City shall ensure that the property conveyed is 
        available and accessible to the public, on a reasonable basis 
        for educational, park, recreational, cultural, historic 
        preservation or similar purposes.
            (4) The City shall not be required to maintain any active 
        aid to navigation associated with the property conveyed under 
        this section except for private aids to navigation permitted 
        under 14 U.S.C. 83.
            (5) All conditions placed with the deed of title for 
        property conveyed under this section shall be construed as 
        covenants running with the land.
            (6) The Administrator or the Commandant, as appropriate, may 
        require such additional terms and conditions with respect to the 
        conveyance of property under this section, as the Administrator 
        or the Commandant considers appropriate to protect the interests 
        of the United States.

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

    (c) Reversionary Interest.--In addition to any term or condition 
established pursuant to this section, any property conveyed under this 
section, at the option of the Administrator, shall revert to the United 
States and be placed under the administrative control of the 
Administrator, if--
            (1) the property conveyed under this section, or any part 
        thereof, ceases to be maintained in a manner that ensures its 
        present or future use as a site for an aid to navigation as 
        determined by the Commandant;
            (2) the property conveyed under this section, or any part 
        thereof, ceases to be available and accessible to the public, on 
        a reasonable basis, for educational, park, recreational, 
        cultural, historic preservation or similar purposes; or
            (3) at least 30 days before the reversion, the Administrator 
        provides written notice to the grantee that property conveyed 
        under this section, or any portion thereof, is needed for 
        national security purposes.

    (d) Definitions.--For purposes of this section:
            (1) Aid to navigation.--The term ``aid to navigation'' means 
        equipment used for navigation purposes, including but not 
        limited to, a light, antenna, sound signal, electronic and radio 
        navigation equipment and signals, cameras, sensors, or other 
        equipment operated or maintained by the United States.
            (2) City.--The term ``City'' includes the successors and 
        assigns of the City of Newburyport, Massachusetts.

    Sec. 1116. Transfer of Coast Guard Station Scituate to the National 
Oceanic and Atmospheric Administration. (a) Authority To Transfer.--
            (1) In general.--The Administrator of the General Services 
        Administration, in consultation with the Commandant, United 
        States Coast Guard, may transfer without consideration 
        administrative jurisdiction, custody, and control over the 
        Federal property known as Coast Guard Station Scituate to the 
        National Oceanic and Atmospheric Administration (hereinafter 
        referred to as ``NOAA'').
            (2) Identification of property.--The Administrator, in 
        consultation with the Commandant, may identify, describe, and 
        determine the property to be transferred under this section.

    (b) Terms of Transfer.--
            (1) The transfer of the property shall be made subject to 
        any conditions and reservations the Commandant considers 
        necessary to ensure that--
                    (A) the transfer of the property to NOAA is 
                contingent upon the relocation of Coast Guard Station 
                Scituate to a suitable site;
                    (B) there is reserved to the Coast Guard the right 
                to remove, relocate, or replace any aid to navigation 
                located upon, or install any aid to navigation upon, the 
                property transferred under this section as may be 
                necessary for navigational purposes; and
                    (C) the Coast Guard shall have the right to enter 
                the property transferred under this section at any time, 
                without notice, for purposes of operating, maintaining, 
                and inspecting any aid to navigation.
            (2) The transfer of the property shall be made subject to 
        the review and acceptance of the property by NOAA.

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

    (c) Relocation of Station Scituate.--The Coast Guard may--
            (1) lease land, including unimproved or vacant land, for a 
        term not to exceed 20 years, for the purpose of relocating Coast 
        Guard Station Scituate; and
            (2) improve the land leased under this subsection.

    Sec. 1117. Extension of Interim Authority for Dry Bulk Cargo Residue 
Disposal. (a) Section 415(b)(2) of the Coast Guard Authorization Act of 
1998 is amended by striking ``2002'' and inserting ``2004''.
    (b) The Secretary shall conduct a study of the effectiveness of the 
United States 1997 Enforcement Policy for Cargo Residues on the Great 
Lakes (``Policy'') by September 30, 2002.
    (c) The Secretary is authorized to promulgate regulations to 
implement and enforce a program to regulate incidental discharges from 
vessels of residues of non-hazardous and non-toxic dry bulk cargo into 
the waters of the Great Lakes, which takes into account the finding in 
the study required under subsection (b). This program shall be 
consistent with the Policy.
    Sec. 1118. Great Lakes Pilotage Advisory Committee. Section 9307 of 
title 46, United States Code, is amended--
            (1) by amending subparagraph (A) of subsection (b)(2) to 
        read as follows:
                    ``(A) The President of each of the 3 Great Lakes 
                pilotage districts, or the President's 
                representative;'';
            (2) by amending subparagraph (E) of subsection (b)(2) to 
        read as follows:
                    ``(E) a member with a background in finance or 
                accounting, who--
                          ``(i) must have been recommended to the 
                      Secretary by a unanimous vote of the other members 
                      of the Committee, and
                          ``(ii) may be appointed without regard to 
                      requirement in paragraph (1) that each member have 
                      5 years of practical experience in maritime 
                      operations.'';
            (3) in subsection (C)(2) by striking the second sentence;
            (4) by adding at the end of subsection (d) the following new 
        paragraph:
            ``(3) Any recommendations to the Secretary under subsection 
        (a)(2) must have been approved by at least all but one of the 
        members then serving on the committee.''; and
            (5) in subsection (f )(1) by striking ``September 30, 2003'' 
        and inserting ``September 30, 2005''.

    Sec. 1119. Vessel Escort Operations and Towing Assistance. (a) In 
General.--Except in the case of a vessel in distress, only a vessel of 
the United States (as that term is defined in section 2101 of title 46, 
United States Code) may perform the following vessel escort operations 
and vessel towing assistance within the navigable waters of the United 
States:
            (1) Operations or assistance that commences or terminates at 
        a port or place in the United States.
            (2) Operations or assistance required by United States law 
        or regulation.
            (3) Operations provided in whole or in part for the purpose 
        of escorting or assisting a vessel within or through navigation 
        facilities owned, maintained, or operated by the United States 
        Government or the approaches to such facilities, other than

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

        facilities operated by the St. Lawrence Seaway Development 
        Corporation on the St. Lawrence River portion of the Seaway.

    (b) Definitions.--Unless otherwise defined by a provision of law or 
regulation requiring that towing assistance or escort be rendered to 
vessels transiting United States waters or navigation facilities, for 
purposes of this section--
            (1) the term ``towing assistance'' means operations by an 
        assisting vessel in direct contact with an assisted vessel 
        (including hull-to-hull, by towline, including if only pre-
        tethered, or made fast to that vessel by one or more lines) for 
        purposes of exerting force on the assisted vessel to control or 
        to assist in controlling the movement of the assisted vessel; 
        and
            (2) the term ``escort operations'' means accompanying a 
        vessel for the purpose of providing towing or towing assistance 
        to the vessel.

    Sec. 1120. Notwithstanding any other provision of law, the 
Commandant of the United States Coast Guard is hereby authorized to 
utilize $100,000 of the amounts made available for fiscal year 2001 for 
environmental compliance and restoration of Coast Guard facilities to 
reimburse the owner of the former Coast Guard lighthouse facility at 
Cape May, New Jersey, for costs incurred for clean-up of lead 
contaminated soil at that facility.
    Sec. 1121. Notwithstanding any other provision of law, $2,400,000, 
to be derived from the Highway Trust Fund, shall be available for 
planning, development and construction of rural farm-to-market roads in 
Tulare County, California: Provided, That the non-Federal share of such 
improvements shall be 20 percent.
    Sec. 1122. Notwithstanding any other provision of law, and subject 
to the availability of funds appropriated specifically for the project, 
the Coast Guard is authorized to transfer funds in an amount not to 
exceed $200,000 and project management authority to the Traverse City 
Area Public School District for the purposes of demolition and removal 
of the structure commonly known as ``Building 402'' at former Coast 
Guard property located in Traverse City, Michigan, and associated site 
work. No such funds shall be transferred until the Coast Guard receives 
a detailed, fixed price estimate from the School District describing the 
nature and cost of the work to be performed, and the Coast Guard shall 
transfer only that amount of funds it and the School District consider 
necessary to complete the project.
    Sec. 1123. Notwithstanding any other provision of law, for necessary 
expenses for Alabama A&M University buses and bus facilities, $500,000, 
to be derived from the Mass Transit Account of the Highway Trust Fund 
and to remain available until expended.
    Sec. 1124. Notwithstanding any other provision of law, prior to the 
fiscal year 2002 apportionment of ``Fixed Guideway Modernization'' funds 
authorized under section 5309(a)(1)(E) of title 49, United States Code, 
$7,047,502 of funds made available in fiscal year 2002 by section 
5338(b) of title 49, United States Code, for the ``Fixed Guideway 
Modernization'' program shall be distributed by the Federal Transit 
Administration to an urbanized area over 200,000 that did not receive 
amounts of fixed guideway modernization formula grants to which such 
area was lawfully entitled for fiscal years 1999-2001 in view of 
eligibility determinations made under chapter 53 of title 49, United 
States Code, during the 6 months prior to the effective date of this 
Act: Provided,

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

That such sums shall not reduce a grantee's fiscal year 2002 
apportionment level of ``Fixed Guideway Modernization'' funds: Provided 
further, That such sum remain available until expended.
    Sec. 1125. Notwithstanding any other provision of law, Airport 
Improvement Program Formula Changes provided in Public Law 106-181 and 
defined in section 104 of that Act shall be applied regardless of 
funding levels made available under section 48103 of title 49, United 
States Code.
    Sec. 1126. Item number 473 contained in section 1602 of the 
Transportation Equity Act for the 21st Century (112 Stat. 274), relating 
to Minnesota, is amended by striking ``between I-35W and 24th Avenue to 
four lanes in Richfield'' and inserting ``reconstruction project from 
Penn Avenue to 24th Avenue, including the Penn Avenue Bridge over I-
494''.
    Sec. 1127. The Secretary of Transportation shall not issue final 
regulations under section 20153 of title 49, United States Code, before 
July 1, 2001.
    Sec. 1128. Notwithstanding any other provision of law, in addition 
to amounts made available in this Act or any other Act, the following 
sums shall be made available from the Highway Trust Fund (other than the 
Mass Transit Account):
            $1,700,000 for transportation and community preservation 
        projects along the Main Street Corridor in Houston, Texas;
            $5,000,000 for rehabilitation, repair, and restoration of 
        the historic Stillwater Lift Bridge between Stillwater, 
        Minnesota and Houlton, Wisconsin;
            $1,000,000 for improvements to McClung Road, Boston Street, 
        Larson Street and Whirlpool Drive in the City of LaPorte, 
        Indiana; and
            $1,000,000 for design, environmental mitigation, 
        engineering, and construction of, and improvements to, the US 
        36/Wadsworth interchange (Broomfield interchange) in Broomfield 
        County, Colorado:

Provided, That the amounts appropriated in this section shall remain 
available until expended and shall not be subject to, or computed 
against, any obligation limitation or contract authority set forth in 
this or any other Act.

                               CHAPTER 12

                     GENERAL SERVICES ADMINISTRATION

                        Real Property Activities

                         federal buildings fund

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

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

                       DEPARTMENT OF THE TREASURY

                      United States Customs Service

  operations, maintenance and procurement, air and marine interdiction 
                                programs

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

                               CHAPTER 13

                     DEPARTMENT OF VETERANS AFFAIRS

                       Departmental Administration

                      construction, minor projects

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

               DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

                   Community Planning and Development

                empowerment zones/enterprise communities

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

                       community development fund

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

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

    The seventh paragraph under this heading in title II of Public Law 
106-377 is amended by striking ``$292,000,000'' and inserting in lieu 
thereof ``$358,128,000'': Provided, That such funds shall be available 
for grants for the Economic Development Initiative (EDI) to finance a 
variety of targeted economic investments in accordance with the terms 
and conditions specified in the statement of managers accompanying this 
conference report.

                       DEPARTMENT OF THE TREASURY

              Community Development Financial Institutions

              community development financial institutions

                          fund program account

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

                     Environmental Protection Agency

                         science and technology

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

                  environmental programs and management

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

                   state and tribal assistance grants

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

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

                   Federal Emergency Management Agency

              emergency management planning and assistance

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

                               CHAPTER 14

                    General Provisions--This Division

    Sec. 1401. H. Con. Res. 234 of the 106th Congress, as adopted by the 
House of Representatives on November 18, 1999, shall be considered to 
have been adopted by the Senate.
    Sec. 1402. Section 3003(a)(1) of the Federal Reports Elimination and 
Sunset Act of 1995 (31 U.S.C. 1113 note) does not apply to any report 
required to be submitted under any of the following provisions of law:
            (1) Sections 1105(a), 1106(a) and (b), and 1109(a) of title 
        31, United States Code, and any other law relating to the budget 
        of the United States Government.
            (2) The Balanced Budget and Emergency Deficit Control Act of 
        1985 (2 U.S.C. 900 et seq.).
            (3) Sections 202(e)(1) and (3) of the Congressional Budget 
        Act of 1974 (2 U.S.C. 602(e)(1) and (3)).
            (4) Section 1014(e) of the Congressional Budget and 
        Impoundment Control Act of 1974 (2 U.S.C. 685(e)).

    Sec. 1403. (a) Government-Wide Rescissions.--There is hereby 
rescinded an amount equal to 0.22 percent of the discretionary budget 
authority provided (or obligation limit imposed) for fiscal year 2001 in 
this or any other Act for each department, agency, instrumentality, or 
entity of the Federal Government, except for those programs, projects, 
and activities which are specifically exempted elsewhere in this 
provision: Provided, That this exact reduction percentage shall be 
applied on a pro rata basis only to each program, project, and activity 
subject to the rescission.
    (b) Restrictions.--This reduction shall not be applied to the 
amounts appropriated in title I of Public Law 106-259: Provided, That 
this reduction shall not be applied to the amounts appropriated in 
division B of Public Law 106-246: Provided further, That this reduction 
shall not be applied to the amounts appropriated under the Departments 
of Labor, Health and Human Services, and Education, and Related Agencies 
Appropriations Act, 2001, as contained in this Act, or in prior Acts.
    (c) Report.--The Director of the Office of Management and Budget 
shall include in the President's budget submitted for fiscal year 2002 a 
report specifying the reductions made to each account pursuant to this 
section.

                               DIVISION B

                                 TITLE I

    Sec. 101. Eligibility of Private Organizations Under Child and Adult 
Care Food Program. (a) Section 17(a)(2)(B) of the

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

Richard B. Russell National School Lunch Act (42 U.S.C. 1766(a)(2)(B)) 
is amended by striking ``children for which the'' and inserting 
``children, if--
                          ``(i) during the period beginning on the date 
                      of enactment of this clause and ending on 
                      September 30, 2001, at least 25 percent of the 
                      children served by the organization meet the 
                      income eligibility criteria established under 
                      section 9(b) for free or reduced price meals; or
                          ``(ii) the''.

    (b) Emergency Requirement.--
            (1) In general.--The entire amount necessary to carry out 
        this section shall be available only to the extent that an 
        official budget request for the entire amount, that includes 
        designation of the entire amount of the request as an emergency 
        requirement as defined in the Balanced Budget and Emergency 
        Deficit Control Act of 1985, as amended, is transmitted by the 
        President to the Congress.
            (2) Designation.--The entire amount necessary to carry out 
        this section is designated by the Congress as an emergency 
        requirement pursuant to section 251(b)(2)(A) of such Act.

    Sec. 102. Summer Food Pilot Projects. (a) Section 18 of the Richard 
B. Russell National School Lunch Act (42 U.S.C. 1769) is amended by 
adding at the end the following:
    ``(f ) Summer Food Pilot Projects.--
            ``(1) Definition of eligible state.--In this subsection, the 
        term `eligible State' means a State in which (based on data 
        available in July 2000)--
                    ``(A) the percentage obtained by dividing--
                          ``(i) the sum of--
                                    ``(I) the average daily number of 
                                children attending the summer food 
                                service program in the State in July 
                                1999; and
                                    ``(II) the average daily number of 
                                children receiving free or reduced price 
                                meals under the school lunch program in 
                                the State in July 1999; by
                          ``(ii) the average daily number of children 
                      receiving free or reduced price meals under the 
                      school lunch program in the State in March 1999; 
                      is less than 50 percent of
                    ``(B) the percentage obtained by dividing--
                          ``(i) the sum of--
                                    ``(I) the average daily number of 
                                children attending the summer food 
                                service program in all States in July 
                                1999; and
                                    ``(II) the average daily number of 
                                children receiving free or reduced price 
                                meals under the school lunch program in 
                                all States in July 1999; by
                          ``(ii) the average daily number of children 
                      receiving free or reduced price meals under the 
                      school lunch program in all States in March 1999.
            ``(2) Pilot projects.--During the period of fiscal years 
        2001 through 2003, the Secretary shall carry out a summer food 
        pilot project in each eligible State to increase the number

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

        of children participating in the summer food service program in 
        the State.
            ``(3) Support levels for service institutions.--
                    ``(A) Food service.--Under the pilot project, a 
                service institution (other than a service institution 
                described in section 13(a)(7)) in an eligible State 
                shall receive the maximum amounts for food service under 
                section 13(b)(1) without regard to the requirement under 
                section 13(b)(1)(A) that payments shall equal the full 
                cost of food service operations.
                    ``(B) Administrative costs.--Under the pilot 
                project, a service institution (other than a service 
                institution described in section 13(a)(7)) in an 
                eligible State shall receive the maximum amounts for 
                administrative costs determined by the Secretary under 
                section 13(b)(4) without regard to the requirement under 
                section 13(b)(3) that payments to service institutions 
                shall equal the full amount of State-approved 
                administrative costs incurred.
                    ``(C) Compliance.--A service institution that 
                receives assistance under this subsection shall comply 
                with all provisions of section 13 other than subsections 
                (b)(1)(A) and (b)(3) of section 13.
            ``(4) Maintenance of effort.--Expenditures of funds from 
        State and local sources for maintenance of a summer food service 
        program shall not be diminished as a result of assistance from 
        the Secretary received under this subsection.
            ``(5) Evaluation of pilot projects.--
                    ``(A) In general.--The Secretary, acting through the 
                Administrator of the Food and Nutrition Service, shall 
                conduct an evaluation of the pilot project.
                    ``(B) Content.--An evaluation under this paragraph 
                shall describe--
                          ``(i) any effect on participation by children 
                      and service institutions in the summer food 
                      service program in the eligible State in which the 
                      pilot project is carried out;
                          ``(ii) any effect of the pilot project on the 
                      quality of the meals and supplements served in the 
                      eligible State in which the pilot project is 
                      carried out; and
                          ``(iii) any effect of the pilot project on 
                      program integrity.
            ``(6) Reports.--
                    ``(A) Interim report.--Not later than December 1, 
                2002, the Secretary shall submit to the Committee on 
                Education and the Workforce of the House of 
                Representatives and the Committee on Agriculture, 
                Nutrition, and Forestry of the Senate an interim report 
                that describes the status of, and any progress made
by, each pilot project being carried out under this subsection as of the 
date of submission of the report.
                    ``(B) Final report.--Not later than April 30, 2004, 
                the Secretary shall submit to the Committee on Education 
                and the Workforce of the House of Representatives and 
                the Committee on Agriculture, Nutrition, and Forestry of 
                the Senate a final report that includes--
                          ``(i) the evaluations completed by the 
                      Secretary under paragraph (5); and

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

                          ``(ii) any recommendations of the Secretary 
                      concerning the pilot projects.''.

    (b) Emergency Requirement.--
            (1) In general.--The entire amount necessary to carry out 
        this section shall be available only to the extent that an 
        official budget request for the entire amount, that includes 
        designation of the entire amount of the request as an emergency 
        requirement as defined in the Balanced Budget and Emergency 
        Deficit Control Act of 1985, as amended, is transmitted by the 
        President to the Congress.
            (2) Designation.--The entire amount necessary to carry out 
        this section is designated by the Congress as an emergency 
        requirement pursuant to section 251(b)(2)(A) of such Act.

    Sec. 103. (a) In General.--The Secretary of the Interior shall 
conduct a feasibility study for a Sacramento River, California, 
diversion project that is consistent with the Water Forum Agreement 
among the members of the Sacramento, California, Water Forum dated April 
24, 2000, and that considers--
            (1) consolidation of several of the Natomas Central Mutual 
        Water Company's diversions;
            (2) upgrading fish screens at the consolidated diversion;
            (3) the diversion of 35,000 acre feet of water by the Placer 
        County Water Agency;
            (4) the diversion of 29,000 acre feet of water for delivery 
        to the Northridge Water District;
            (5) the potential to accommodate other diversions of water 
        from the Sacramento River, subject to additional negotiations 
        and agreement among Water Forum signatories and potentially 
        affected parties upstream on the Sacramento River; and
            (6) an inter-tie between the diversions referred to in 
        paragraphs (3), (4), and (5) with the Northridge Water 
        District's pipeline that delivers water from the American River.

    (b) Required Components.--The feasibility study shall include--
            (1) the development of a range of reasonable options;
            (2) an environmental evaluation; and
            (3) consultation with Federal and State resource management 
        agencies regarding potential impacts and mitigation measures.

    (c) Water Supply Impact Alternatives.--The study authorized by this 
section shall include a range of alternatives, all of which would 
investigate options that could reduce to insignificance any water supply 
impact on water users in the Sacramento River watershed, including 
Central Valley Project contractors, from any delivery of water out of 
the Sacramento River as referenced in subsection (a). In evaluating the 
alternatives, the study shall consider water supply alternatives that 
would increase water supply for, or in, the Sacramento River watershed. 
The study should be coordinated with the CALFED program and take 
advantage of information already developed within that program to 
investigate water supply increase alternatives. Where the alternatives 
evaluated are in addition to or different from the existing CALFED 
alternatives, such information should be clearly identified.
    (d) Habitat Management Planning Grants.--The Secretary of the 
Interior, subject to the availability of appropriations, is authorized 
and directed to provide grants to support local habitat management 
planning efforts undertaken as part of the consultation

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

described in subsection (b)(3) in the form of matching funds up to 
$5,000,000.
    (e) Report.--The Secretary of the Interior shall provide a report to 
the Committee on Resources of the United States House of Representatives 
and to the Committee on Energy and Natural Resources of the United 
States Senate within 24 months from the date of enactment of this Act on 
the results of the study identified in subsection (a).
    (f ) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary of the Interior to carry out this section 
$10,000,000, which may remain available until expended, of which--
            (1) $5,000,000 shall be for the feasibility study under 
        subsection (a); and
            (2) $5,000,000 shall be for the habitat management planning 
        grants under subsection (d).

    (g) Limitation on Construction.--This section does not and shall not 
be interpreted to authorize construction of any facilities.

    Sec. 104. Ten- and Fifteen-Mile Bayous, Arkansas. The project for 
flood control, Saint Francis River Basin, Missouri and Arkansas, 
authorized by section 204 of the Flood Control Act of 1950 (64 Stat. 
172), is modified to expand the boundaries of the project to include 
Ten- and Fifteen-Mile Bayous near West Memphis, Arkansas. 
Notwithstanding section 103(f ) of the Water Resources Development Act 
of 1986 (100 Stat. 4086), the flood control work at Ten- and Fifteen-
Mile Bayous shall not be considered separable elements of the project.

    Sec. 105. In accordance with section 102(l) of the Water Resources 
Development Act of 1990 (104 Stat. 4613), the Secretary of the Army, 
acting through the Chief of Engineers, is authorized and directed to 
enter into an agreement to permit the City of Alton, Illinois to 
construct the authorized recreational facilities and to reimburse the 
City of Alton, Illinois for the Federal share of these cost-shared 
recreation facilities as usable segments are completed.

    Sec. 106. Truckee Watershed Reclamation Project. (a) 
Authorization.--The Secretary of the Interior, in cooperation with 
Washoe County, Nevada, may participate in the design, planning, and 
construction of the Truckee watershed reclamation project, consisting of 
the North Valley reuse project and the Spanish Springs Valley septic 
conversion project, to reclaim and reuse wastewater (including degraded 
groundwater) within and without the service area of Washoe County, 
Nevada.
    (b) Cost Share.--The Federal share of the cost of the project 
described in subsection (a) shall not exceed 25 percent of the total 
cost of the project.
    (c) Limitation.--Funds provided by the Secretary shall not be used 
for the operation or maintenance of the project described in subsection 
(a).
    (d) Reclamation Wastewater and Groundwater Study and Facilities 
Act.--
            (1) Design, planning, and construction.--Design, planning, 
        and construction of the project described in subsection (a) 
        shall be in accordance with, and subject to the limitations 
        contained in, the Reclamation Wastewater and Groundwater Study 
        and Facilities Act (43 U.S.C. 390h et seq.).

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

            (2) Funding.--Funds made available under section 1631 of the 
        Reclamation Wastewater and Groundwater Study and Facilities Act 
        (43 U.S.C. 390h-13) may be used to pay the Federal share of the 
        cost of the project.

    Sec. 107. The project for navigation, Tampa Harbor, Florida, 
authorized by section 4 of the Rivers and Harbors Act of September 22, 
1922 (42 Stat. 1042), is modified to authorize the Secretary of the Army 
to deepen and widen the Alafia Channel in accordance with the plans 
described in the Draft Feasibility Report, Alafia River, Tampa Harbor, 
Florida, dated May 2000, at a total cost of $61,592,000, with an 
estimated Federal cost of $39,621,000 and an estimated non-Federal cost 
of $21,971,000.

    Sec. 108. Environmental Infrastructure. (a) Technical, Planning, and 
Design Assistance.--Section 219(c) of the Water Resources Development 
Act of 1992 (106 Stat. 4835) is amended by adding at the end the 
following:
            ``(19)  Marana, arizona.--Wastewater treatment and 
        distribution infrastructure, Marana, Arizona.
            ``(20) Eastern arkansas enterprise community, arkansas.--
        Water-related infrastructure, Eastern Arkansas Enterprise 
        Community, Cross, Lee, Monroe, and St. Francis Counties, 
        Arkansas.
            ``(21) Chino hills, california.--Storm water and sewage 
        collection infrastructure, Chino Hills, California.
            ``(22) Clear lake basin, california.--Water-related 
        infrastructure and resource protection, Clear Lake Basin, 
        California.
            ``(23) Desert hot springs, california.--Resource protection 
        and wastewater infrastructure, Desert Hot Springs, California.
            ``(24) Eastern municipal water district, california.--
        Regional water-related infrastructure, Eastern Municipal Water 
        District, California.
            ``(25) Huntington beach, california.--Water supply and 
        wastewater infrastructure, Huntington Beach, California.
            ``(26) Inglewood, california.--Water infrastructure, 
        Inglewood, California.
            ``(27) Los osos community service district, california.--
        Wastewater infrastructure, Los Osos Community Service District, 
        California.
            ``(28) Norwalk, california.--Water-related infrastructure, 
        Norwalk, California.
            ``(29) Key biscayne, florida.--Sanitary sewer 
        infrastructure, Key Biscayne, Florida.
            ``(30) South tampa, florida.--Water supply and aquifer 
        storage and recovery infrastructure, South Tampa, Florida.
            ``(31) Fort wayne, indiana.--Combined sewer overflow 
        infrastructure and wetlands protection, Fort Wayne, Indiana.
            ``(32) Indianapolis, indiana.--Combined sewer overflow 
        infrastructure, Indianapolis, Indiana.
            ``(33) St. charles, st. bernard, and plaquemines parishes, 
        louisiana.--Water and wastewater infrastructure, St. Charles, 
        St. Bernard, and Plaquemines Parishes, Louisiana.
            ``(34) St. john the baptist and st. james parishes, 
        louisiana.--Water and sewer improvements, St. John the Baptist 
        and St. James Parishes, Louisiana.
            ``(35) Union county, north carolina.--Water infrastructure, 
        Union County, North Carolina.

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

            ``(36) Hood river, oregon.--Water transmission 
        infrastructure, Hood River, Oregon.
            ``(37) Medford, oregon.--Sewer collection infrastructure, 
        Medford, Oregon.
            ``(38) Portland, oregon.--Water infrastructure and resource 
        protection, Portland, Oregon.
            ``(39) Coudersport, pennsylvania.--Sewer system extensions 
        and improvements, Coudersport, Pennsylvania.
            ``(40) Park city, utah.--Water supply infrastructure, Park 
        City, Utah.''.

    (b) Authorization of Appropriations for Technical, Planning, and 
Design Assistance.--Section 219(d) of the Water Resources Development 
Act of 1992 (106 Stat. 4836) is amended by striking ``$5,000,000'' and 
inserting ``$30,000,000''.
    (c) Modification of Authorizations for Environmental Projects.--
Section 219 of the Water Resources Development Act of 1992 (106 Stat. 
4835; 106 Stat. 3757; 113 Stat. 334) is amended--
            (1) in subsection (e)(6) by striking ``$20,000,000'' and 
        inserting ``$30,000,000'';
            (2) in subsection (f )(4) by striking ``$15,000,000'' and 
        inserting ``$35,000,000'';
            (3) in subsection (f )(21) by striking ``$10,000,000'' and 
        inserting ``$20,000,000'';
            (4) in subsection (f )(25) by striking ``$5,000,000'' and 
        inserting ``$15,000,000'';
            (5) in subsection (f )(30) by striking ``$10,000,000'' and 
        inserting ``$20,000,000'';
            (6) in subsection (f )(43) by striking ``$15,000,000'' and 
        inserting ``$35,000,000''.

    (d) Additional Assistance for Critical Resource Projects.--Section 
219(f ) of the Water Resources Development Act of 1992 (106 Stat. 4835; 
113 Stat. 335) is amended by adding at the end the following:
            ``(45) Washington, d.c., and maryland.--$15,000,000 for the 
        project described in subsection (c)(1), modified to include 
        measures to eliminate or control combined sewer overflows in the 
        Anacostia River watershed.
            ``(46) Duck river, cullman, alabama.--$5,000,000 for water 
        supply infrastructure, Duck River, Cullman, Alabama.
            ``(47) Union county, arkansas.--$52,000,000 for water supply 
        infrastructure, including facilities for withdrawal, treatment, 
        and distribution, Union County, Arkansas.
            ``(48) Cambria, california.--$10,300,000 for desalination 
        infrastructure, Cambria, California.
            ``(49) Los angeles harbor/terminal island, california.--
        $6,500,000 for wastewater recycling infrastructure, Los Angeles 
        Harbor/Terminal Island, California.
            ``(50) North valley region, lancaster, california.--
        $14,500,000 for water infrastructure, North Valley Region, 
        Lancaster, California.
            ``(51) San diego county, california.--$10,000,000 for water-
        related infrastructure, San Diego County, California.
            ``(52) South perris, california.--$25,000,000 for water 
        supply desalination infrastructure, South Perris, California.
            ``(53) Aurora, illinois.--$8,000,000 for wastewater 
        infrastructure to reduce or eliminate combined sewer overflows, 
        Aurora, Illinois.

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

            ``(54) Cook county, illinois.--$35,000,000 for water-related 
        infrastructure and resource protection and development, Cook 
        County, Illinois.
            ``(55) Madison and st. clair counties, illinois.--
        $10,000,000 for water and wastewater assistance, Madison and St. 
        Clair Counties, Illinois.
            ``(56) Iberia parish, louisiana.--$5,000,000 for water and 
        wastewater infrastructure, Iberia Parish, Louisiana.
            ``(57) Kenner, louisiana.--$5,000,000 for wastewater 
        infrastructure, Kenner, Louisiana.
            ``(58) Benton harbor, michigan.--$1,500,000 for water-
        related infrastructure, City of Benton Harbor, Michigan.
            ``(59) Genesee county, michigan.--$6,700,000 for wastewater 
        infrastructure assistance to reduce or eliminate sewer 
        overflows, Genesee County, Michigan.
            ``(60) Negaunee, michigan.--$10,000,000 for wastewater 
        infrastructure assistance, City of Negaunee, Michigan.
            ``(61) Garrison and kathio township, minnesota.--$11,000,000 
        for a wastewater infrastructure project for the city of Garrison 
        and Kathio Township, Minnesota.
            ``(62) Newton, new jersey.--$7,000,000 for water filtration 
        infrastructure, Newton, New Jersey.
            ``(63) Liverpool, new york.--$2,000,000 for water 
        infrastructure, including a pump station, Liverpool, New York.
            ``(64) Stanly county, north carolina.--$8,900,000 for 
        wastewater infrastructure, Stanly County, North Carolina.
            ``(65) Yukon, oklahoma.--$5,500,000 for water-related 
        infrastructure, including wells, booster stations, storage 
        tanks, and transmission lines, Yukon, Oklahoma.
            ``(66) Allegheny county, pennsylvania.--$20,000,000 for 
        water-related environmental infrastructure, Allegheny County, 
        Pennsylvania.
            ``(67) Mount joy township and conewago township, 
        pennsylvania.--$8,300,000 for water and wastewater 
        infrastructure, Mount Joy Township and Conewago Township, 
        Pennsylvania.
            ``(68) Phoenixville borough, chester county, pennsylvania.--
        $2,400,000 for water and sewer infrastructure, Phoenixville 
        Borough, Chester County, Pennsylvania.
            ``(69) Titusville, pennsylvania.--$7,300,000 for storm water 
        separation and treatment plant upgrades, Titusville, 
        Pennsylvania.
            ``(70) Washington, greene, westmoreland, and fayette 
        counties, pennsylvania.--$8,000,000 for water and wastewater 
        infrastructure, Washington, Greene, Westmoreland, and Fayette 
        Counties, Pennsylvania.''.

    Sec. 109. Florida Keys Water Quality Improvements. (a) In General.--
In coordination with the Florida Keys Aqueduct Authority, appropriate 
agencies of municipalities of Monroe County, Florida, and other 
appropriate public agencies of the State of Florida or Monroe County, 
the Secretary of the Army may provide technical and financial assistance 
to carry out projects for the planning, design, and construction of 
treatment works to improve water quality in the Florida Keys National 
Marine Sanctuary.
    (b) Criteria for Projects.--Before entering into a cooperation 
agreement to provide assistance with respect to a project under this 
section, the Secretary shall ensure that--

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

            (1) the non-Federal sponsor has completed adequate planning 
        and design activities, as applicable;
            (2) the non-Federal sponsor has completed a financial plan 
        identifying sources of non-Federal funding for the project;
            (3) the project complies with--
                    (A) applicable growth management ordinances of 
                Monroe County, Florida;
                    (B) applicable agreements between Monroe County, 
                Florida, and the State of Florida to manage growth in 
                Monroe County, Florida; and
                    (C) applicable water quality standards; and
            (4) the project is consistent with the master wastewater and 
        storm water plans for Monroe County, Florida.

    (c) Consideration.--In selecting projects under subsection (a), the 
Secretary shall consider whether a project will have substantial water 
quality benefits relative to other projects under consideration.
    (d) Consultation.--In carrying out this section, the Secretary shall 
consult with--
            (1) the Water Quality Steering Committee established under 
        section 8(d)(2)(A) of the Florida Keys National Marine Sanctuary 
        and Protection Act (106 Stat. 5054);
            (2) the South Florida Ecosystem Restoration Task Force 
        established by section 528(f ) of the Water Resources 
        Development Act of 1996 (110 Stat. 3771-3773);
            (3) the Commission on the Everglades established by 
        executive order of the Governor of the State of Florida; and
            (4) other appropriate State and local government officials.

    (e) Non-Federal Share.--
            (1) In general.--The non-Federal share of the cost of a 
        project carried out under this section shall be 35 percent.
            (2) Credit.--
                    (A) In general.--The Secretary may provide the non-
                Federal interest credit toward cash contributions 
                required--
                          (i) before and during the construction of the 
                      project, for the costs of planning, engineering, 
                      and design, and for the construction management 
                      work that is performed by the non-Federal interest 
                      and that the Secretary determines is necessary to 
                      implement the project; and
                          (ii) during the construction of the project, 
                      for the construction that the non-Federal interest 
                      carries out on behalf of the Secretary and that 
                      the Secretary determines is necessary to carry out 
                      the project.
                    (B) Treatment of credit between projects.--Any 
                credit provided under this paragraph may be carried over 
                between authorized projects.

    (f ) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $100,000,000. Such sums shall 
remain available until expended.
    Sec. 110. San Gabriel Basin, California. (a) San Gabriel Basin 
Restoration.--
            (1) Establishment of fund.--There shall be established 
        within the Treasury of the United States an interest bearing 
        account to be known as the San Gabriel Basin Restoration Fund 
        (in this section referred to as the ``Restoration Fund'').

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

            (2) Administration of fund.--The Restoration Fund shall be 
        administered by the Secretary of the Army, in cooperation with 
        the San Gabriel Basin Water Quality Authority or its successor 
        agency.
            (3) Purposes of fund.--
                    (A) In general.--Subject to subparagraph (B), the 
                amounts in the Restoration Fund, including interest 
                accrued, shall be utilized by the Secretary--
                          (i) to design and construct water quality 
                      projects to be administered by the San Gabriel 
                      Basin Water Quality Authority and the Central 
                      Basin Water Quality Project to be administered by 
                      the Central Basin Municipal Water District; and
                          (ii) to operate and maintain any project 
                      constructed under this section for such period as 
                      the Secretary determines, but not to exceed 10 
                      years, following the initial date of operation of 
                      the project.
                    (B) Cost-sharing limitation.--
                          (i) In general.--The Secretary may not 
                      obligate any funds appropriated to the Restoration 
                      Fund in a fiscal year until the Secretary has 
                      deposited in the Fund an amount provided by non-
                      Federal interests sufficient to ensure that at 
                      least 35 percent of any funds obligated by the 
                      Secretary are from funds provided to the Secretary 
                      by the non-Federal interests.
                          (ii) Non-federal responsibility.--The San 
                      Gabriel Basin Water
Quality Authority shall be responsible for providing the non-Federal 
amount required by clause (i). The State of California, local government 
agencies, and private entities may provide all or any portion of such 
amount.

    (b) Compliance With Applicable Law.--In carrying out the activities 
described in this section, the Secretary shall comply with any 
applicable Federal and State laws.
    (c) Relationship to Other Activities.--Nothing in this section shall 
be construed to affect other Federal or State authorities that are being 
used or may be used to facilitate the cleanup and protection of the San 
Gabriel and Central groundwater basins. In carrying out the activities 
described in this section, the Secretary shall integrate such activities 
with ongoing Federal and State projects and activities. None of the 
funds made available for such activities pursuant to this section shall 
be counted against any Federal authorization ceiling established for any 
previously authorized Federal projects or activities.
    (d) Authorization of Appropriations.--
            (1) In general.--There is authorized to be appropriated to 
        the Restoration Fund established under subsection (a) 
        $85,000,000. Such funds shall remain available until expended.
            (2) Set-aside.--Of the amounts appropriated under paragraph 
        (1), no more than $10,000,000 shall be available to carry out 
        the Central Basin Water Quality Project.

    (e) Adjustment.--Of the $25,000,000 made available for San Gabriel 
Basin Groundwater Restoration, California, under the heading 
``Construction, General'' in title I of the Energy and Water Development 
Appropriations Act, 2001--
            (1) $2,000,000 shall be available only for studies and other 
        investigative activities and planning and design of projects

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

        determined by the Secretary to offer a long-term solution to the 
        problem of groundwater contamination caused by perchlorates at 
        sites located in the city of Santa Clarita, California; and
            (2) $23,000,000 shall be deposited in the Restoration Fund, 
        of which $4,000,000 shall be used for remediation in the Central 
        Basin, California.

    Sec. 111. Perchlorate. (a) In General.--The Secretary of the Army, 
in cooperation with Federal, State, and local government agencies, may 
participate in studies and other investigative activities and in the 
planning and design of projects determined by the Secretary to offer a 
long-term solution to the problem of groundwater contamination caused by 
perchlorates.
    (b) Investigations and Projects.--
            (1) Bosque and leon rivers.--The Secretary, in coordination 
        with other Federal agencies and the Brazos River Authority, 
        shall participate under subsection (a) in investigations and 
        projects in the Bosque and Leon Rivers watersheds in Texas to 
        assess the impact of the perchlorate associated with the former 
        Naval ``Weapons Industrial Reserve Plant'' at McGregor, Texas.
            (2) Caddo lake.--The Secretary, in coordination with other 
        Federal agencies and the Northeast Texas Municipal Water 
        District, shall participate under subsection (a) in 
        investigations and projects relating to perchlorate 
        contamination in Caddo Lake, Texas.
            (3) Eastern santa clara basin.--The Secretary, in 
        coordination with other Federal, State, and local government 
        agencies, shall participate under subsection (a) in 
        investigations and projects related to sites that are sources of 
        perchlorates and that are located in the city of Santa Clarita, 
        California.

    (c) Authorization of Appropriations.--For the purposes of carrying 
out this section, there is authorized to be appropriated to the 
Secretary $25,000,000, of which not to exceed $8,000,000 shall be 
available to carry out subsection (b)(1), not to exceed $3,000,000 shall 
be available to carry out subsection (b)(2), and not to exceed 
$7,000,000 shall be available to carry out subsection (b)(3).
    Sec. 112. Wet Weather Water Quality. (a) Combined Sewer Overflows.--
Section 402 of the Federal Water Pollution Control Act (33 U.S.C. 1342) 
is amended by adding at the end the following:
    ``(q) Combined Sewer Overflows.--
            ``(1) Requirement for permits, orders, and decrees.--Each 
        permit, order, or decree issued pursuant to this Act after the 
        date of enactment of this subsection for a discharge from a 
        municipal combined storm and sanitary sewer shall conform to the 
        Combined Sewer Overflow Control Policy signed by the 
        Administrator on April 11, 1994 (in this subsection referred to 
        as the `CSO control policy').
            ``(2) Water quality and designated use review guidance.--Not 
        later than July 31, 2001, and after providing notice and 
        opportunity for public
comment, the Administrator shall issue guidance to facilitate the 
conduct of water quality and designated use reviews for municipal 
combined sewer overflow receiving waters.
            ``(3) Report.--Not later than September 1, 2001, the 
        Administrator shall transmit to Congress a report on the

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

        progress made by the Environmental Protection Agency, States, 
        and municipalities in implementing and enforcing the CSO control 
        policy.''.

    (b) Wet Weather Pilot Program.--Title I of the Federal Water 
Pollution Control Act (33 U.S.C. 1251 et seq.) is amended by adding at 
the end the following:

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

    ``(a) In General.--The Administrator, in coordination with the 
States, may provide technical assistance and grants for treatment works 
to carry out pilot projects relating to the following areas of wet 
weather discharge control:
            ``(1) Watershed management of wet weather discharges.--The 
        management of municipal combined sewer overflows, sanitary sewer 
        overflows, and stormwater discharges, on an integrated watershed 
        or subwatershed basis for the purpose of demonstrating the 
        effectiveness of a unified wet weather approach.
            ``(2) Stormwater best management practices.--The control of 
        pollutants from municipal separate storm sewer systems for the 
        purpose of demonstrating and determining controls that are cost-
        effective and that use innovative technologies in reducing such 
        pollutants from stormwater discharges.

    ``(b) Administration.--The Administrator, in coordination with the 
States, shall provide municipalities participating in a pilot project 
under this section the ability to engage in innovative practices, 
including the ability to unify separate wet weather control efforts 
under a single permit.
    ``(c) Funding.--
            ``(1) In general.--There is authorized to be appropriated to 
        carry out this section $10,000,000 for fiscal year 2002, 
        $15,000,000 for fiscal year 2003, and $20,000,000 for fiscal 
        year 2004. Such funds shall remain available until expended.
            ``(2) Stormwater.--The Administrator shall make available 
        not less than 20 percent of amounts appropriated for a fiscal 
        year pursuant to this subsection to carry out the purposes of 
        subsection (a)(2).
            ``(3) Administrative expenses.--The Administrator may retain 
        not to exceed 4 percent of any amounts appropriated for a fiscal 
        year pursuant to this subsection for the reasonable and 
        necessary costs of administering this section.

    ``(d) Report to Congress.--Not later than 5 years after the date of 
enactment of this section, the Administrator shall transmit to Congress 
a report on the results of the pilot projects conducted under this 
section and their possible application nationwide.''.
    (c) Sewer Overflow Control Grants.--Title II of the Federal Water 
Pollution Control Act (33 U.S.C. 1342 et seq.) is amended by adding at 
the end the following:

``SEC. 221. SEWER OVERFLOW CONTROL GRANTS.

    ``(a) In General.--In any fiscal year in which the Administrator has 
available for obligation at least $1,350,000,000 for the purposes of 
section 601--
            ``(1) the Administrator may make grants to States for the 
        purpose of providing grants to a municipality or municipal 
        entity for planning, design, and construction of treatment works 
        to intercept, transport, control, or treat municipal combined 
        sewer overflows and sanitary sewer overflows; and

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

            ``(2) subject to subsection (g), the Administrator may make 
        a direct grant to a municipality or municipal entity for the 
        purposes described in paragraph (1).

    ``(b) Prioritization.--In selecting from among municipalities 
applying for grants under subsection (a), a State or the Administrator 
shall give priority to an applicant that--
            ``(1) is a municipality that is a financially distressed 
        community under subsection (c);
            ``(2) has implemented or is complying with an implementation 
        schedule for the nine minimum controls specified in the CSO 
        control policy referred to in section 402(q)(1) and has begun 
        implementing a long-term municipal combined sewer overflow 
        control plan or a separate sanitary sewer overflow control plan;
            ``(3) is requesting a grant for a project that is on a 
        State's intended use plan pursuant to section 606(c); or
            ``(4) is an Alaska Native Village.

    ``(c) Financially Distressed Community.--
            ``(1) Definition.--In subsection (b), the term `financially 
        distressed community' means a community that meets affordability 
        criteria established by
the State in which the community is located, if such criteria are 
developed after public review and comment.
            ``(2) Consideration of impact on water and sewer rates.--In 
        determining if a community is a distressed community for the 
        purposes of subsection (b), the State shall consider, among 
        other factors, the extent to which the rate of growth of a 
        community's tax base has been historically slow such that 
        implementing a plan described in subsection (b)(2) would result 
        in a significant increase in any water or sewer rate charged by 
        the community's publicly owned wastewater treatment facility.
            ``(3) Information to assist states.--The Administrator may 
        publish information to assist States in establishing 
        affordability criteria under paragraph (1).

    ``(d) Cost-Sharing.--The Federal share of the cost of activities 
carried out using amounts from a grant made under subsection (a) shall 
be not less than 55 percent of the cost. The non-Federal share of the 
cost may include, in any amount, public and private funds and in-kind 
services, and may include, notwithstanding section 603(h), financial 
assistance, including loans, from a State water pollution control 
revolving fund.
    ``(e) Administrative Reporting Requirements.--If a project receives 
grant assistance under subsection (a) and loan assistance from a State 
water pollution control revolving fund and the loan assistance is for 15 
percent or more of the cost of the project, the project may be 
administered in accordance with State water pollution control revolving 
fund administrative reporting requirements for the purposes of 
streamlining such requirements.
    ``(f ) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $750,000,000 for each of fiscal 
years 2002 and 2003. Such sums shall remain available until expended.
    ``(g) Allocation of Funds.--
            ``(1) Fiscal year 2002.--Subject to subsection (h), the 
        Administrator shall use the amounts appropriated to carry

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

        out this section for fiscal year 2002 for making grants to 
        municipalities and municipal entities under subsection (a)(2), 
        in accordance with the criteria set forth in subsection (b).
            ``(2) Fiscal year 2003.--Subject to subsection (h), the 
        Administrator shall use the amounts appropriated to carry out 
        this section for fiscal year 2003 as follows:
                    ``(A) Not to exceed $250,000,000 for making grants 
                to municipalities and municipal entities under 
                subsection (a)(2), in accordance with the criteria set 
                forth in subsection (b).
                    ``(B) All remaining amounts for making grants to 
                States under subsection (a)(1), in accordance with a 
                formula to be established by the Administrator, after 
                providing notice and an opportunity for public comment, 
                that allocates to each State a proportional share of 
                such amounts based on the total needs of the State for 
                municipal combined sewer overflow controls and sanitary 
                sewer overflow controls identified in the most recent 
                survey conducted pursuant to section 516(b)(1).

    ``(h) Administrative Expenses.--Of the amounts appropriated to carry 
out this section for each fiscal year--
            ``(1) the Administrator may retain an amount not to exceed 1 
        percent for the reasonable and necessary costs of administering 
        this section; and
            ``(2) the Administrator, or a State, may retain an amount 
        not to exceed 4 percent of any grant made to a municipality or 
        municipal entity under subsection (a), for the reasonable and 
        necessary costs of administering the grant.

    ``(i) Reports.--Not later than December 31, 2003, and periodically 
thereafter, the Administrator shall transmit to Congress a report 
containing recommended funding levels for grants under this section. The 
recommended funding levels shall be sufficient to ensure the continued 
expeditious implementation of municipal combined sewer overflow and 
sanitary sewer overflow controls nationwide.''.
    (d) Information on CSOS and SSOS.--
            (1) Report to congress.--Not later than 3 years after the 
        date of enactment of this Act, the Administrator of the 
        Environmental Protection Agency shall transmit to Congress a 
        report summarizing--
                    (A) the extent of the human health and environmental 
                impacts caused by municipal combined sewer overflows and 
                sanitary sewer overflows, including the location of 
                discharges causing such impacts, the volume of 
                pollutants discharged, and the constituents discharged;
                    (B) the resources spent by municipalities to address 
                these impacts; and
                    (C) an evaluation of the technologies used by 
                municipalities to address these impacts.
            (2) Technology clearinghouse.--After transmitting a report 
        under paragraph (1), the Administrator shall maintain a 
        clearinghouse of cost-effective and efficient technologies for 
        addressing human health and environmental impacts due to 
        municipal combined sewer overflows and sanitary sewer overflows.

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

    Sec. 113. Fish Passage Devices at New Savannah Bluff Lock and Dam, 
South Carolina. Section 348(l)(2) of the Water Resources Development Act 
of 2000 is amended--
            (1) in subparagraph (A), by striking ``Dam, at Federal 
        expense of an estimated $5,300,000'' and inserting ``Dam and 
        construct appropriate fish passage devices at the Dam, at 
        Federal expense''; and
            (2) in subparagraph (B), by striking ``after repair and 
        rehabilitation,'' and inserting ``after carrying out 
        subparagraph (A),''.

    Sec. 114. (a) Extinguishment of Reversionary Interests and Use 
Restrictions.--With respect to the lands described in the deed described 
in subsection (b)--
            (1) the reversionary interests and the use restrictions 
        relating to port or industrial purposes are extinguished;
            (2) the human habitation or other building structure use 
        restriction is extinguished in each area where the elevation is 
        above the standard project flood elevation; and
            (3) the use of fill material to raise areas above the 
        standard project flood elevation, without increasing the risk of 
        flooding in or outside of the floodplain, is authorized, except 
        in any area constituting wetland for which a permit under 
        section 404 of the Federal Water Pollution Control Act (33 
        U.S.C. 1344) would be required.

    (b) Affected Deed.--The deed referred to is the deed recorded 
October 17, 1967, in book 291, page 148, Deed of Records of Umatilla 
County, Oregon, executed by the United States.
    Sec. 115. Murrieta Creek, California. Section 101(b)(6) of the Water 
Resources Development Act of 2000 is repealed.
    Sec. 116. Penn Mine, Calaveras County, California. (a) In General.--
The Secretary of the Army shall reimburse East Bay Municipal Water 
District for the project for aquatic ecosystem restoration, Penn Mine, 
Calaveras County, California, carried out under section 206 of the Water 
Resources Development Act of 1996 (33 U.S.C. 2330), $4,100,000 for the 
Federal share of costs incurred by East Bay Municipal Utility District 
for work carried out by East Bay Municipal Utility District for the 
project. Such amounts shall be made available within 90 days of 
enactment of this provision.
    (b) Source of Funding.--Reimbursement under subsection (a) shall be 
from amounts appropriated before the date of enactment of this Act for 
the project described in subsection (a).
    Sec. 117. The project for flood control, Greers Ferry Lake, 
Arkansas, authorized by the Rivers and Harbors Act of June 28, 1938 (52 
Stat. 1218), is modified to authorize the Secretary of the Army to 
construct intake facilities for the benefit of Lonoke and White 
Counties, Arkansas.

    Sec. 118. The project for flood control, Chehalis River and 
Tributaries, Washington, authorized by section 401(a) of the Water 
Resources Development Act of 1986 (100 Stat. 4126), is modified to 
authorize the Secretary of the Army to provide the non-Federal interest 
credit toward the non-Federal share of the cost of the project the cost 
of planning, design, and construction work carried out by the non-
Federal interest before the date of execution of a cooperation agreement 
for the project if the Secretary determines that the work is integral to 
the project.

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

    Sec. 119. Within the funds appropriated to the National Park Service 
under the heading ``Operation of the National Park System'' in Public 
Law 106-291, the Secretary of the Interior shall provide a grant of 
$75,000 to the City of Ocean Beach, New York, for repair of facilities 
at the Ocean Beach Pavilion at Fire Island National Seashore.

    Sec. 120. The National Park Service is directed to work with Fort 
Sumter Tours, Inc., the concessionaire currently providing services at 
Fort Sumter National Monument in South Carolina, on an amicable solution 
of the current legal dispute between the two parties. The Director of 
the Service is directed to extend immediately the current contract 
through March 15, 2001, to facilitate further negotiations and for 180 
days if final settlement of all disputes is agreed to by both parties.
    Sec. 121. Title VIII--Land Conservation, Preservation, and 
Infrastructure Improvement of Public Law 106-291 is amended as follows: 
after the first dollar amount insert: ``, to be derived from the Land 
and Water Conservation Fund''.

    Sec. 122. Gas to Liquids. Section 301(2) of the Energy Policy Act of 
1992 (Public Law 102-486; 42 U.S.C. 13211(2)) is amended by inserting 
``, including liquid fuels domestically produced from natural gas'' 
after ``natural gas''.

    Sec. 124. Appalachian National Scenic Trail. (a) Acquisitions.--
            (1) In general.--The Secretary of the Interior shall--
                    (A) negotiate agreements with landowners setting 
                terms and conditions for the acquisition of parcels of 
                land and interests in land totaling approximately 580 
                acres at Saddleback Mountain near Rangeley, Maine, for 
                the benefit of the Appalachian National Scenic Trail;
                    (B) complete the pending environmental compliance 
                process for the acquisitions; and
                    (C) acquire the parcels of land and interests in 
                land for consideration in the amount of $4,000,000 plus 
                closing costs customarily paid by the United States.
            (2) Acceptance of donations.--The Secretary may accept as 
        donations parcels of land and interests in land at Saddleback 
        Mountain, in addition to those acquired by purchase under 
        paragraph (1), for the benefit of the Appalachian National 
        Scenic Trail.

    (b) Conveyance to the State.--The Secretary shall convey to the 
State of Maine a portion of the land and interests in land acquired 
under subsection (a) without consideration, subject to such terms and 
conditions as the Secretary and the State of Maine agree are necessary 
to ensure the protection of the Appalachian National Scenic Trail.
    Sec. 125. The provisions of S. 2273, as passed in the United States 
Senate on October 5, 2000 and engrossed, are hereby enacted into law.
    Sec. 126. Section 116(a)(1)(A) of the Illinois and Michigan Canal 
National Heritage Corridor Act of 1984 (98 Stat. 1467) is amended by 
striking ``$250,000'' and inserting ``$1,000,000''.
    Sec. 127. The provisions of S. 2885, as passed in the United States 
Senate on October 5, 2000 and engrossed, are hereby enacted into law.
    Sec. 128. None of the funds provided in this or any other Act may be 
used prior to July 31, 2001, to promulgate or enforce

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

a final rule to reduce during the 2000-2001 or 2001-2002 winter seasons 
the use of snowmobiles below current use patterns at a unit in the 
National Park System: Provided, That nothing in this section shall be 
interpreted as amending any requirement of the Clean Air Act: Provided 
further, That nothing in this section shall preclude the Secretary from 
taking emergency actions related to snowmobile use in any National Park 
based on authorities which existed to permit such emergency actions as 
of the date of enactment of this Act.
    Sec. 129. The Secretary of the Interior shall extend until March 31, 
2001, the ``Extension of Standstill Agreement,'' entered into on 
November 22, 1999, by the United States of America and the holders of 
interests in seven campsite leases in Biscayne Bay, Miami-Dade County, 
Florida collectively known as ``Stiltsville''.

    Sec. 130. The Secretary of the Interior is authorized to make a 
grant of $1,300,000 to the State of Minnesota or its political 
subdivision from funds available to the National Park Service under the 
heading ``Land Acquisition and State Assistance'' in Public Law 106-291 
to cover the cost of acquisition of land in Lower Phalen Creek near St. 
Paul, Minnesota in the Mississippi National River and Recreation Area.

    Sec. 131. Notwithstanding any provision of law or regulation, funds 
appropriated in Public Law 106-291 for a cooperative agreement for 
management of George Washington's Boyhood Home, Ferry Farm, shall be 
transferred to the George Washington's Fredericksburg Foundation, Inc. 
(formerly known as Kenmore Association, Inc.) immediately upon signing 
of the cooperative agreement.

    Sec. 132. During the period beginning on the date of the enactment 
of this Act and ending on June 1, 2001, funds made available to the 
Secretary of the Interior may not be used to pay salaries or expenses 
related to the issuance of a request for proposal related to a light 
rail system to service Grand Canyon National Park.
    Sec. 133. None of the funds in this or any other Act may be used by 
the Secretary of the Interior to remove the five-foot-tall white cross 
located within the boundary of the Mojave National Preserve in southern 
California first erected in 1934 by the Veterans of Foreign Wars along 
Cima Road approximately 11 miles south of Interstate 15.
    Sec. 134. Section 6(g) of the Chesapeake and Ohio Canal Development 
Act (16 U.S.C. 410y-4(g)) is amended by striking ``thirty'' and 
inserting ``40''.
    Sec. 135. Funds provided in Public Law 106-291 for Federal land 
acquisition by the National Park Service in Fiscal Year 2001 for 
Brandywine Battlefield, Ice Age National Scenic Trail, Mississippi 
National River and Recreation Area, Shenandoah National Heritage Area, 
Fallen Timbers Battlefield and Fort Miamis National Historic Site may be 
used for a grant to a State, local government, or to a land management 
entity for the acquisition of lands without regard to any restriction on 
the use of Federal land acquisition funds provided through the Land and 
Water Conservation Act of 1965.

    Sec. 136. Notwithstanding any other provision of law, in accordance 
with title IV--Wildland Fire Emergency Appropriations, Public Law 106-
291, from the $35,000,000 provided for community and private land fire 
assistance, the Secretary of Agriculture, may use

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

up to $9,000,000 for advance, direct lump sum payments for assistance to 
eligible individuals, businesses, or other entities, to accomplish the 
purposes of providing assistance to non-Federal entities most affected 
by fire. To expedite such financial assistance being provided to 
eligible recipients, the lump sum payments shall not be subject to 7 CFR 
3015, 3019, and 3052 related to the administration of Federal financial 
assistance.

    Sec. 137. (a) In General.--The first section of Public Law 91-660 
(16 U.S.C. 459h) is amended--
            (1) in the first sentence, by striking ``That, in'' and 
        inserting the following:

``SECTION 1. GULF ISLANDS NATIONAL SEASHORE.

    ``(a) Establishment.--In''; and
            (2) in the second sentence--
                    (A) by redesignating paragraphs (1) through (6) as 
                subparagraphs (A) through (F), respectively, and 
                indenting appropriately;
                    (B) by striking ``The seashore shall comprise'' and 
                inserting the following:

    ``(b) Composition.--
            ``(1) In general.--The seashore shall comprise the areas 
        described in paragraphs (2) and (3).
            ``(2) Areas included in boundary plan numbered ns-gi-
        7100j.--The areas described in this paragraph are'': and
                    (C) by adding at the end the following:
            ``(3) Cat island.--Upon its acquisition by the Secretary, 
        the area described in this paragraph is the parcel consisting of 
        approximately 2,000 acres of land on Cat Island, Mississippi, as 
        generally depicted on the map entitled `Boundary Map, Gulf 
        Islands National Seashore, Cat Island, Mississippi', numbered 
        635/80085, and dated November 9, 1999 (referred to in this title 
        as the `Cat Island Map').
            ``(4) Availability of map.--The Cat Island Map shall be on 
        file and available for public inspection in the appropriate 
        offices of the National Park Service.''.

    (b) Acquisition Authority.--Section 2 of Public Law 91-660 (16 
U.S.C. 459h-1) is amended--
            (1) in the first sentence of subsection (a), by striking 
        ``lands,'' and inserting ``submerged land, land,''; and
            (2) by adding at the end the following:

    ``(e) Acquisition Authority.--
            ``(1) In general.--The Secretary may acquire, from a willing 
        seller only--
                    ``(A) all land comprising the parcel described in 
                subsection (b)(3) that is above the mean line of 
                ordinary high tide, lying and being situated in Harrison 
                County, Mississippi;
                    ``(B) an easement over the approximately 150-acre 
                parcel depicted as the `Boddie Family Tract' on the Cat 
                Island Map for the purpose of implementing an agreement 
                with the owners of the parcel concerning the development 
                and use of the parcel; and
                    ``(C)(i) land and interests in land on Cat Island 
                outside the 2,000-acre area depicted on the Cat Island 
                Map; and
                    ``(ii) submerged land that lies within 1 mile 
                seaward of Cat Island (referred to in this title as the 
                `buffer zone'),

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

                except that submerged land owned by the State of 
                Mississippi (or a subdivision of the State) may be 
                acquired only by donation.
            ``(2) Administration.--
                    ``(A) In general.--Land and interests in land 
                acquired under this subsection shall be administered by 
                the Secretary, acting through the Director of the 
                National Park Service.
                    ``(B) Buffer zone.--Nothing in this title or any 
                other provision of law shall require the State of 
                Mississippi to convey to the Secretary any right, title, 
                or interest in or to the buffer zone as a condition for 
                the establishment of the buffer zone.
            ``(3) Modification of boundary.--The boundary of the 
        seashore shall be modified to reflect the acquisition of land 
        under this subsection only after completion of the 
        acquisition.''.

    (c) Regulation of Fishing.--Section 3 of Public Law 91-660 (16 
U.S.C. 459h-2) is amended--
            (1) by inserting ``(a) In General.--'' before ``The 
        Secretary''; and
            (2) by adding at the end the following:

    ``(b) No Authority To Regulate Maritime Activities.--Nothing in this 
title or any other provision of law shall affect any right of the State 
of Mississippi, or give the Secretary any authority, to regulate 
maritime activities, including nonseashore fishing activities (including 
shrimping), in any area that, on the date of enactment of this 
subsection, is outside the designated boundary of the seashore 
(including the buffer zone).''.
    (d) Authorization of Management Agreements.--Section 5 of Public Law 
91-660 (16 U.S.C. 459h-4) is amended--
            (1) by inserting ``(a) In General.--'' before ``Except''; 
        and
            (2) by adding at the end the following:

    ``(b) Agreements.--
            ``(1) In general.--The Secretary may enter into agreements--
                    ``(A) with the State of Mississippi for the purposes 
                of managing resources and providing law enforcement 
                assistance, subject to authorization by State law, and 
                emergency services on or within any land on Cat Island 
                and any water and submerged land within the buffer zone; 
                and
                    ``(B) with the owners of the approximately 150-acre 
                parcel depicted as the `Boddie Family Tract' on the Cat 
                Island Map concerning the development and use of the 
                land.
            ``(2) No authority to enforce certain regulations.--Nothing 
        in this subsection authorizes the Secretary to enforce Federal 
        regulations outside the land area within the designated boundary 
        of the seashore.''.

    (e) Authorization of Appropriations.--Section 11 of Public Law 91-
660 (16 U.S.C. 459h-10) is amended--
            (1) by inserting ``(a) In General.--'' before ``There''; and
            (2) by adding at the end the following:

    ``(b) Authorization for Acquisition of Land.--In addition to the 
funds authorized by subsection (a), there are authorized to be 
appropriated such sums as are necessary to acquire land and submerged 
land on and adjacent to Cat Island, Mississippi.''.

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

    Sec. 138. Percentage Limitations on Federal Thrift Savings Plan 
Contributions. (a) Amendments Relating to FERS.--
            (1) In general.--Subsection (a) of section 8432 of title 5, 
        United States Code, is amended--
                    (A) by striking ``(a)'' and inserting ``(a)(1)'';
                    (B) by striking ``10 percent'' and all that follows 
                through ``period.'' and inserting ``the maximum 
                percentage of such employee's or Member's basic pay for 
                such pay period allowable under paragraph (2).''; and
                    (C) by adding at the end the following:

    ``(2) The maximum percentage allowable under this paragraph shall be 
determined in accordance with the following table:

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

            (2) Justices and judges.--Paragraph (2) of section 8440a(b) 
        of title 5, United States Code, is amended to read as follows:

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

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

                compensation for such pay period (received under such 
                section 206) allowable under section 8440f.''.
            (7) Maximum percentage allowable.--
                    (A) In general.--Title 5, United States Code, is 
                amended by inserting after section 8440e the following:

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

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

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

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

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

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

    ``(B) The maximum percentage allowable under this subparagraph shall 
be determined in accordance with the following table:

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

    (c) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        take effect on the date of enactment of this Act.
            (2) Coordination with election periods.--The Executive 
        Director shall by regulation determine the first election period 
        in which elections may be made consistent with the amendments 
        made by this section.
            (3) Definitions.--For purposes of this section--
                    (A) the term ``election period'' means a period 
                afforded under section 8432(b) of title 5, United States 
                Code; and
                    (B) the term ``Executive Director'' has the meaning 
                given such term by section 8401(13) of title 5, United 
                States Code.

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

    Sec. 139. Exclusion of Elements of United States Secret Service From 
Certain Activities. Section 7103(a)(3) of title 5, United States Code, 
is amended--
            (1) in subparagraph (F), by striking ``or'' at the end;
            (2) in subparagraph (G), by striking the period and 
        inserting ``; or''; and
            (3) by adding at the end the following new subparagraph:
                    ``(H) the United States Secret Service and the 
                United States Secret Service Uniformed Division.''.

    Sec. 140. (a) The adjustment in rates of basic pay for the statutory 
pay systems that takes effect in fiscal year 2001 under sections 5303 
and 5304 of title 5, United States Code, shall be an increase of 3.7 
percent.
    (b) Funds used to carry out this section shall be paid from 
appropriations which are made to each applicable department or agency 
for salaries and expenses for fiscal year 2001.

    Sec. 141. Repeal of Mandatory Separation Requirement. (a) In 
General.--Section 8335 of title 5, United States Code, is amended--
            (1) by striking subsection (c); and
            (2) by redesignating subsections (d) and (e) as subsections 
        (c) and (d), respectively.

    (b) Technical and Conforming Amendment.--Section 8339(q) of title 5, 
United States Code, is amended by striking ``8335(d)'' and inserting 
``8335(c)''.

    Sec. 142. Section 223(a)(14) of the Juvenile Justice and Delinquency 
Prevention Act of 1974 (42 U.S.C. 5633(a)(14) as amended, is hereby 
amended by inserting after the phrase ``twenty-four hours'' the 
following new phrase: ``(except in the case of Alaska where such time 
limit may be forty-eight hours in fiscal years 2000 through 2002)''.
    Sec. 143. (a) Section 336 of the Communications Act of 1934 (47 
U.S.C. 336) is amended--
            (1) by redesignating subsection (h) as subsection (i); and
            (2) by inserting after subsection (g) the following:

    ``(h)(1) Within 60 days after receiving a request (made in such form 
and manner and containing such information as the Commission may 
require) under this subsection from a low-power television station to 
which this subsection applies, the Commission shall authorize the 
licensee or permittee of that station to provide digital data service 
subject to the requirements of this subsection as a pilot project to 
demonstrate the feasibility of using low-power television stations to 
provide high-speed wireless digital data service, including Internet 
access to unserved areas.
            ``(2) The low-power television stations to which this 
        subsection applies are as follows:
                    ``(A) KHLM-LP, Houston, Texas.
                    ``(B) WTAM-LP, Tampa, Florida.
                    ``(C) WWRJ-LP, Jacksonville, Florida.
                    ``(D) WVBG-LP, Albany, New York.
                    ``(E) KHHI-LP, Honolulu, Hawaii.
                    ``(F) KPHE-LP (K19DD), Phoenix, Arizona.
                    ``(G) K34FI, Bozeman, Montana.
                    ``(H) K65GZ, Bozeman, Montana.
                    ``(I) WXOB-LP, Richmond, Virginia.
                    ``(J) WIIW-LP, Nashville, Tennessee.

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

                    ``(K) A station and repeaters to be determined by 
                the Federal Communications Commission for the sole 
                purpose of providing service to communities in the Kenai 
                Peninsula Borough and Matanuska Susitna Borough.
                    ``(L) WSPY-LP, Plano, Illinois.
                    ``(M) W24AJ, Aurora, Illinois.
            ``(3) Notwithstanding any requirement of section 553 of 
        title 5, United States Code, the Commission shall promulgate 
        regulations establishing the procedures, consistent with the 
        requirements of paragraphs (4) and (5), governing the pilot 
        projects for the provision of digital data services by certain 
        low power television licensees within 120 days after the date of 
        enactment of LPTV Digital Data Services Act. The regulations 
        shall set forth--
                    ``(A) requirements as to the form, manner, and 
                information required for submitting requests to the 
                Commission to provide digital data service as a pilot 
                project;
                    ``(B) procedures for testing interference to digital 
                television receivers caused by any pilot project station 
                or remote transmitter;
                    ``(C) procedures for terminating any pilot project 
                station or remote transmitter or both that causes 
                interference to any analog or digital full-power 
                television stations, class A television station, 
                television translators or any other users of the core 
                television band;
                    ``(D) specifications for reports to be filed 
                quarterly by each low power television licensee 
                participating in a pilot project;
                    ``(E) procedures by which a low power television 
                licensee participating in a pilot project shall notify 
                television broadcast stations in the same market upon 
                commencement of digital
data services and for ongoing coordination with local broadcasters 
during the test period; and
                    ``(F) procedures for the receipt and review of 
                interference complaints on an expedited basis consistent 
                with paragraph (5)(D).
            ``(4) A low-power television station to which this 
        subsection applies may not provide digital data service unless--
                    ``(A) the provision of that service, including any 
                remote return-path transmission in the case of 2-way 
                digital data service, does not cause any interference in 
                violation of the Commission's existing rules, regarding 
                interference caused by low power television stations to 
                full-service analog or digital television stations, 
                class A television stations, or television translator 
                stations; and
                    ``(B) the station complies with the Commission's 
                regulations governing safety, environmental, and sound 
                engineering practices, and any other Commission 
                regulation under paragraph (3) governing pilot program 
                operations.
            ``(5)(A) The Commission may limit the provision of digital 
        data service by a low-power television station to which this 
        subsection applies if the Commission finds that--
                    ``(i) the provision of 2-way digital data service by 
                that station causes any interference that cannot 
                otherwise be remedied; or

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

                    ``(ii) the provision of 1-way digital data service 
                by that station causes any interference.
            ``(B) The Commission shall grant any such station, upon 
        application (made in such form and manner and containing such 
        information as the Commission may require) by the licensee or 
        permittee of that station, authority to move the station to 
        another location, to modify its facilities to operate on a 
        different channel, or to use booster or auxiliary transmitting 
        locations, if the grant of authority will not cause interference 
        to the allowable or protected service areas of full service 
        digital television stations, National Television Standards 
        Committee assignments, or television translator stations, and 
        provided, however, no such authority shall be granted unless it 
        is consistent with existing Commission regulations relating to 
        the movement, modification, and use of non-class A low power 
        television transmission facilities in order--
                    ``(i) to operate within television channels 2 
                through 51, inclusive; or
                    ``(ii) to demonstrate the utility of low-power 
                television stations to provide high-speed 2-way wireless 
                digital data service.
            ``(C) The Commission shall require quarterly reports from 
        each station authorized to provide digital data services under 
        this subsection that include--
                    ``(i) information on the station's experience with 
                interference complaints and the resolution thereof;
                    ``(ii) information on the station's market success 
                in providing digital data service; and
                    ``(iii) such other information as the Commission may 
                require in order to administer this subsection.
            ``(D) The Commission shall resolve any complaints of 
        interference with television reception caused by any station 
        providing digital data service authorized under this subsection 
        within 60 days after the complaint is received by the 
        Commission.
            ``(6) The Commission shall assess and collect from any low-
        power television station authorized to provide digital data 
        service under this subsection an annual fee or other schedule or 
        method of payment comparable to any fee imposed under the 
        authority of this Act on providers of similar services. Amounts 
        received by the Commission under this paragraph may be retained 
        by the Commission as an offsetting collection to the extent 
        necessary to cover the costs of developing and implementing the 
        pilot program authorized by this subsection, and regulating and 
        supervising the provision of digital data service by low-power 
        television stations under this subsection. Amounts received by 
        the Commission under this paragraph in excess of any amount 
        retained under the preceding sentence shall be deposited in the 
        Treasury in accordance with chapter 33 of title 31, United 
        States Code.
            ``(7) In this subsection, the term `digital data service' 
        includes--
                    ``(A) digitally-based interactive broadcast service; 
                and
                    ``(B) wireless Internet access, without regard to--
                          ``(i) whether such access is--
                                    ``(I) provided on a one-way or a 
                                two-way basis;
                                    ``(II) portable or fixed; or

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

                                    ``(III) connected to the Internet 
                                via a band allocated to Interactive 
                                Video and Data Service; and
                          ``(ii) the technology employed in delivering 
                      such service, including the delivery of such 
                      service via multiple transmitters at multiple 
                      locations.
            ``(8) Nothing in this subsection limits the authority of the 
        Commission under any other provision of law.''.

    (b) The Federal Communications Commission shall submit a report to 
the Congress on June 30, 2001, and June 30, 2002, evaluating the utility 
of using low-power television stations to provide high-speed digital 
data service. The reports shall be based on the pilot projects 
authorized by section 336(h) of the Communications Act of 1934 (47 
U.S.C. 336(h)).
    Sec. 144. (a) The Magnuson-Stevens Fishery Conservation and 
Management Act (16 U.S.C. 1801 et. seq.) is amended--
            (1) in section 303(d)(1)(A) by striking ``October 1, 2000,'' 
        and inserting ``October 1, 2002,'';
            (2) in section 303(d)(5) by striking ``October 1, 2000,'' 
        and inserting ``October 1, 2002,'';
            (3) in section 407(b) by striking ``October 1, 2000,'' and 
        inserting ``October 1, 2002,''; and
            (4) in section 407(c)(1) by striking ``October 1, 2000,'' 
        and inserting ``October 1, 2002,''.

    (b) Notwithstanding sections 303(d)(1)(A) and 303(d)(1)(B) of the 
Magnuson-Stevens Fishery Conservation and Management Act, as amended by 
this section, the Pacific Fishery Management Council may recommend and 
the Secretary of Commerce may approve and implement any fishery 
management plan, plan amendment, or regulation, for fixed gear sablefish 
subject to the jurisdiction of such Council, that--
            (1) allows the use of more than one groundfish fishing 
        permit by each fishing vessel; and/or
            (2) sets cumulative trip limit periods, up to 12 months in 
        any calendar year, that allow fishing vessels a reasonable 
        opportunity to harvest the full amount of the associated trip 
        limits.

Notwithstanding subsection (a), the Gulf of Mexico Fishery Management 
Council may develop a biological, economic, and social profile of any 
fishery under its jurisdiction that may be considered for management 
under a quota management system, including the benefits and consequences 
of the quota management systems considered. The North Pacific Fishery 
Management Council shall examine the fisheries under its jurisdiction, 
particularly the Gulf of Alaska groundfish and Bering Sea crab 
fisheries, to determine whether rationalization is needed. In 
particular, the North Pacific Council shall analyze individual fishing 
quotas, processor quotas, cooperatives, and quotas held by communities. 
The analysis should include an economic analysis of the impact of all 
options on communities and processors as well as the fishing fleets. The 
North Pacific Council shall present its analysis to the appropriations 
and authorizing committees of the Senate and House of Representatives in 
a timely manner.
    (c)(1) Public Law 101-380, as amended by section 2204 of chapter 2 
of title II of Public Law 106-246, is amended further--

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

            (A) by striking the second sentence of section 5008(c) and 
        inserting in lieu thereof ``The Federal Advisory Committee Act 
        (5 U.S.C. App. 2) shall not apply to the Institute.'';
            (B) by inserting the following sentence at the end of 
        section 5008(e): ``The administrative funds of the Institute and 
        the administrative funds of the North Pacific Research Board 
        created under Public Law 105-83 may be used to jointly 
        administer such programs at the discretion of the North Pacific 
        Research Board.''; and
            (C) in section 5006(c), as amended by this Act or any other 
        Act making appropriations for fiscal year 2001, by striking the 
        colon immediately before the first proviso and inserting in lieu 
        thereof, ``of which up to $3,000,000 may be used for the lease 
        payment to the Alaska SeaLife Center under section 
        5008(b)(2):''.

    (2) Section 401(e) of Public Law 105-83 is amended--
            (A) in paragraph (2) by striking ``and recommended for 
        Secretarial approval'';
            (B) in paragraph (3)(A) by striking ``, who shall be a co-
        chair of the Board'';
            (C) in paragraph (3)(F) by striking ``, who shall be a co-
        chair of the Board'';
            (D) in paragraph (4)(A) by striking ``and administer'';
            (E) in paragraph (4)(B) by striking the first sentence;
            (F) by adding at the end the following new paragraph:
            ``(5) All decisions of the Board, including grant 
        recommendations, shall be by majority vote of the members listed 
        in paragraphs (3)(A), (3)(F), (3)(G), (3)(J), and (3)(N), in 
        consultation with the other
members. The five voting members may act on behalf of the Board in all 
matters of administration, including the disposition of research funds 
not made available by this section, at any time on or after October 1, 
2000.''; and
            (G) in paragraph (3) by adding at the end the following:
                    ``(N) one member who shall represent fishing 
                interests and shall be nominated by the Board and 
                appointed by the Secretary.''.

    (3) Funds made available for the construction of the NOAA laboratory 
at Lena Point shall be considered incremental funding for the initial 
phase of construction at Lena Point for site work and related 
infrastructure and systems installation.
    (4) Notwithstanding any other provision of law, funds made available 
by this Act or any other Act for the Alaska SeaLife Center shall be 
considered direct payments for all purposes of applicable law.
    (5) Public Law 99-5 is amended--
            (A) by inserting after section 3(e) the following:

    ``(f) The United States shall be represented on the Transboundary 
Panel by seven panel members, of whom--
            ``(1) one shall be an official of the United States 
        Government, with salmon fishery management responsibility and 
        expertise;
            ``(2) one shall be an official of the State of Alaska, with 
        salmon fishery management responsibility and expertise; and
            ``(3) five shall be individuals knowledgeable and 
        experienced in the salmon fisheries for which the Transboundary 
        Panel is responsible.'';

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

            (B) by renumbering the remaining subsections;
            (C) in section 3(g), as redesignated by this subsection, by 
        striking ``The appointing authorities'' and inserting in lieu 
        thereof ``For the northern, southern, and Fraser River panels, 
        the appointing authorities''; and
            (D) in section 3(h)(3), as redesignated by this subsection, 
        by striking ``northern and southern'' and inserting in lieu 
        thereof ``northern, southern, and transboundary''.

    (6) The fishery research vessel for which funds were appropriated in 
Public Law 106-113 shall be homeported in Kodiak, Alaska, and is hereby 
named ``OSCAR DYSON''.
    (d)(1) The Secretary of Commerce (hereinafter ``the Secretary'') 
shall, after notice and opportunity for public comment, adopt final 
regulations not later than May 1, 2001 to implement a fishing capacity 
reduction program for crab fisheries included in the Fishery Management 
Plan for Commercial King and Tanner Crab Fisheries in the Bering Sea and 
Aleutian Islands (hereinafter ``BSAI crab fisheries''). In implementing 
the program the Secretary shall--
            (A) reduce the fishing capacity in the BSAI crab fisheries 
        by permanently reducing the number of license limitation program 
        crab licenses;
            (B) permanently revoke all fishery licenses, fishery 
        permits, area and species endorsements, and any other fishery 
        privileges, for all fisheries subject to the jurisdiction of the 
        United States, issued to a vessel or vessels (or to persons on 
        the basis of their operation or ownership of that vessel or 
        vessels) for which a BSAI crab fisheries reduction permit is 
        surrendered and revoked under section 6011(b) of title 50, Code 
        of Federal Regulations;
            (C) ensure that the Secretary of Transportation is notified 
        of each vessel for which a reduction permit is surrendered and 
        revoked under the program, with a request that such Secretary 
        permanently revoke the fishery endorsement of each such vessel 
        and refuse permission to transfer any such vessel to a foreign 
        flag under paragraph (5);
            (D) ensure that vessels removed from the BSAI crab fisheries 
        under the program are made permanently ineligible to participate 
        in any fishery worldwide, and that the owners of such vessels 
        contractually agree that such vessels will operate only under 
        the United States flag or be scrapped as a reduction vessel 
        pursuant to section 600.1011(c) of title 50, Code of Federal 
        Regulations;
            (E) ensure that vessels removed from the BSAI crab 
        fisheries, the owners of such vessels, and the holders of 
        fishery permits for such vessels forever relinquish any claim 
        associated with such vessel, permits, and any catch history 
        associated with such vessel or permits that could qualify such 
        vessel, vessel owner, or permit holder for any present or future 
        limited access system fishing permits in the United States 
        fisheries based on such vessel, permits, or catch history;
            (F) not include the purchase of Norton Sound red king crab 
        or Norton Sound blue king crab endorsements in the program, 
        though any such endorsements associated with a reduction permit 
        or vessel made ineligible or scrapped under the program shall 
        also be surrendered and revoked as if surrendered and revoked 
        pursuant to section 600.1011(b) of title 50, Code of Federal 
        Regulations;

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

            (G) seek to obtain the maximum sustained reduction in 
        fishing capacity at the least cost by establishing bidding 
        procedures that--
                    (i) assign a bid score to each bid by dividing the 
                price bid for each reduction permit by the total value 
                of the crab landed in the most recent 5-year period in 
                each crab fishery from 1990 through 1999 under that 
                permit, with the value for each year determined by 
                multiplying the average price per pound published by the 
                State of Alaska in each year for each crab fishery 
                included in such reduction permit by the total pounds 
                landed in each crab fishery under that permit in that 
                year; and
                    (ii) use a reverse auction in which the lowest bid 
                score ranks first, followed by each bid with the next 
                lowest bid score, until the total bid amount of all bids 
                equals a reduction cost that the next lowest bid would 
                cause to exceed $100,000,000;
            (H) not waive or otherwise make inapplicable any 
        requirements of the License Limitation Program applicable to 
        such crab fisheries, in particular any requirements in sections 
        679.4(k) and (l) of title 50, Code of Federal Regulations;
            (I) not waive or otherwise make inapplicable any catcher 
        vessel sideboards implemented under the American Fisheries Act 
        (AFA), except that the North Pacific Fishery Management Council 
        shall recommend to the Secretary and to the State of Alaska, not 
        later than February 16, 2001, and the Secretary and the State of 
        Alaska shall implement as appropriate, modifications to such 
        sideboards to the extent necessary to permit AFA catcher vessels 
        that remain in the crab fisheries to share proportionately in 
        any increase in crab harvest opportunities that accrue to all 
        remaining AFA and non-AFA catcher vessels if the fishing 
        capacity reduction program required by this section is 
        implemented;
            (J) establish sub-amounts and repayment fees for each BSAI 
        crab fishery prosecuted under a separate endorsement for 
        repayment of the reduction loan, such that--
                    (i) a reduction loan sub-amount is established for 
                each separate BSAI crab fishery (other than Norton Sound 
                red king crab or Norton Sound blue king crab) by 
                dividing the total value of the crab landed in that 
                fishery under all reduction permits by the total value 
                of all crab landed under such permits in the BSAI crab 
                fisheries (determined using the same average prices and 
                years used under subparagraph (G)(i) of this paragraph), 
                and multiplying the reduction loan amount by the 
                percentage expressed by such ratio; and
                    (ii) fish sellers who participate in the crab 
                fishery under each endorsement repay the reduction loan 
                sub-amount attributable to that fishery; and
            (K) notwithstanding section 1111(b) of the Merchant Marine 
        Act, 1936 (46 U.S.C. App. 1279f(b)(4)), establish a repayment 
        period for the reduction loan of not less than 30 years.
            (2)(A) Only persons to whom a non-interim BSAI crab license 
        and an area/species endorsement have been issued (other than 
        persons to whom only a license and an area/species endorsement 
        for Norton Sound red king crab or Norton Sound blue king crab 
        have been issued) for vessels that--

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

                    (i) qualify under the License Limitation Program 
                criteria set forth in section 679.4 of title 50, Code of 
                Federal Regulations, and
                    (ii) have made at least one landing of BSAI crab in 
                either 1996, 1997, or prior to February 7 in 1998, may 
                submit a bid in the fishing capacity reduction program 
                established by this section.
            (B) After the date of enactment of this section--
                    (i) no vessel 60 feet or greater in length overall 
                may participate in any BSAI crab fishery (other than for 
                Norton Sound red king crab or Norton Sound blue king 
                crab) unless such vessel meets the requirements set 
                forth in subparagraphs (A)(i) and (A)(ii) of this 
                paragraph; and
                    (ii) no vessel between 33 and 60 feet in length 
                overall may participate in any BSAI crab fishery (other 
                than for Norton Sound red king crab or Norton Sound blue 
                king crab) unless such vessel meets the requirements set 
                forth in subparagraph (A)(i) of this paragraph. Nothing 
                in this paragraph shall be construed to affect the 
                requirements for participation in the fisheries for 
                Norton Sound red king crab or Norton Sound blue king 
                crab. The Secretary may, on a case by case basis and 
                after notice and opportunity for public comment, waive 
                the application of subparagraph (A)(ii) of this 
                paragraph if the Secretary determines such waiver is 
                necessary to implement one of the specific exemptions to 
                the recent participation requirement that were 
                recommended by the North Pacific Fishery Management 
                Council in the record of its October, 1998 meeting.
            (3) The fishing capacity reduction program required under 
        this subsection shall be implemented under this subsection and 
        sections 312(b)-(e) of the Magnuson-Stevens Fishery Conservation 
        and Management Act (16 U.S.C. 1861a(b)-(e)). Section 312 and the 
        regulations found in Subpart L of Part 600 of title 50, Code of 
        Federal Regulations, shall apply only to the extent such section 
        or regulations are not inconsistent with or made inapplicable by 
        the specific provisions of this subsection. Sections 600.1001, 
        600.1002, 600.1003, 600.1005, 600.1010(b), 600.1010(d)(1), 
        600.1011(d), the last sentence of 600.1011(a), and the last 
        sentence of 600.1014(f ) of such Subpart shall not apply to the 
        program implemented under this subsection. The program shall be 
        deemed accepted under section 600.1004, and any time period 
        specified in Subpart L that would prevent the Secretary from 
        complying with the May 1, 2001 date required by this subsection 
        shall be modified as appropriate to permit compliance with that 
        date. The referendum required for the program under this 
        subsection shall be a post-bidding referendum under section 
        600.1010 of title 50, Code of Federal Regulations.
            (4)(A) The fishing capacity reduction program required under 
        this subsection is authorized to be financed in equal parts 
        through a reduction loan of $50,000,000 under sections 1111 and 
        1112 of title XI of the Merchant Marine Act, 1936 (46 U.S.C. 
        App. 1279f and 1279g) and $50,000,000 which is authorized to be 
        appropriated for the purposes of such program.

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

            (B) Of the $1,000,000 appropriated in section 120 of 
        division A of Public Law 105-277 for the cost of a direct loan 
        in the Bering Sea and Aleutian Islands crab fisheries--
                    (i) $500,000 shall be for the cost of guaranteeing 
                the reduction loan required under subparagraph (A) of 
                this paragraph in accordance with the requirements of 
                the Federal Credit Reform Act; and
                    (ii) $500,000 shall be available to the Secretary to 
                pay for the cost of implementing the fishing capacity 
                reduction program required by this subsection.
            (C) The funds described in this subsection shall remain 
        available, without fiscal year limitation, until expended. Any 
        funds not used for the fishing capacity reduction program 
        required by this subsection, whether due to a rejection by 
        referendum or otherwise, shall be available on or after October 
        15, 2002, without fiscal year limitation, for assistance to 
        fishermen or fishing communities.
            (5)(A) The Secretary of Transportation shall, upon 
        notification and request by the Secretary, for each vessel 
        identified in such notification and request--
                    (i) permanently revoke any fishery endorsement 
                issued to such vessel under section 12108 of title 46, 
                United States Code; and
                    (ii) refuse to grant the approval required under 
                section 9(c)(2) of the Shipping Act, 1916 (46 U.S.C. 
                App. 808(c)(2)) for the placement of such vessel under 
                foreign registry or the operation of such vessel under 
                the authority of a foreign country.
            (B) The Secretary shall, after notice and opportunity for 
        public comment, adopt final regulations not later than May 1, 
        2001, to prohibit any vessel for which a reduction permit is 
        surrendered and revoked under the fishing capacity reduction 
        program required by this section from engaging in fishing 
        activities on the high seas or under the jurisdiction of any 
        foreign country while operating under the United States flag.
            (6) The purpose of this subsection is to implement a fishing 
        capacity reduction program for the BSAI crab fisheries that 
        results in final action to permanently remove harvesting 
        capacity from such fisheries prior to December 31, 2001. In 
        implementing this subsection the Secretary is directed to use, 
        to the extent practicable, information collected and maintained 
        by the State of Alaska. Any requirements of the Paperwork 
        Reduction Act, the Regulatory Flexibility Act, or any Executive 
        order that would, in the opinion of the Secretary, prevent the 
        Secretary from meeting the deadlines set forth in this 
        subsection shall not apply to the fishing capacity reduction 
        program or the promulgation of regulations to implement such 
        program required by this subsection. Nothing in this subsection 
        shall be construed to prohibit the North Pacific Fishery 
        Management Council from recommending, or the Secretary from 
        approving, changes to any Fishery Management Plan, License 
        Limitation Program, or American Fisheries Act provisions 
        affecting catcher vessel sideboards in accordance with 
        applicable law: Provided, That except as specifically provided 
        in this subsection, such Council may not recommend, and the 
        Secretary may not approve, any action that would have the

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

        effect of increasing the number of vessels eligible to 
        participate in the BSAI crab fisheries after March 1, 2001.

    (e)(1) This subsection may be referred to as the ``Pribilof Islands 
Transition Act''.
    (2) The purpose of this subsection is to complete the orderly 
withdrawal of the National Oceanic and Atmospheric Administration from 
the civil administration of the Pribilof Islands, Alaska.
    (3) Public Law 89-702 (16 U.S.C. 1151 et seq.), popularly known and 
referred to in this subsection as the Fur Seal Act of 1966, is amended 
by amending section 206 (16 U.S.C. 1166) to read as follows:
    ``Sec. 206. (a)(1) Subject to the availability of appropriations, 
the Secretary shall provide financial assistance to any city government, 
village corporation, or tribal council of St. George, Alaska, or St. 
Paul, Alaska.
    ``(2) Notwithstanding any other provision of law relating to 
matching funds, funds provided by the Secretary as assistance under this 
subsection may be used by the entity as non-Federal matching funds under 
any Federal program that requires such matching funds.
    ``(3) The Secretary may not use financial assistance authorized by 
this Act--
            ``(A) to settle any debt owed to the United States;
            ``(B) for administrative or overhead expenses; or
            ``(C) for contributions sought or required from any person 
        for costs or fees to clean up any matter that was caused or 
        contributed to by such person on or after March 15, 2000.

    ``(4) In providing assistance under this subsection the Secretary 
shall transfer any funds appropriated to carry out this section to the 
Secretary of the Interior, who shall obligate such funds through 
instruments and procedures that are equivalent to the instruments and 
procedures required to be used by the Bureau of Indian Affairs pursuant 
to title IV of the Indian Self-Determination and Education Assistance 
Act (25 U.S.C. 450 et seq.).
    ``(5) In any fiscal year for which less than all of the funds 
authorized under subsection (c)(1) are appropriated, such funds shall be 
distributed under this subsection on a pro rata basis among the entities 
referred to in subsection (c)(1) in the same proportions in which 
amounts are authorized by that subsection for grants to those entities.
    ``(b)(1) Subject to the availability of appropriations, the 
Secretary shall provide assistance to the State of Alaska for designing, 
locating, constructing, redeveloping, permitting, or certifying solid 
waste management facilities on the Pribilof Islands to be operated under 
permits issued to the City of St. George and the City of St. Paul, 
Alaska, by the State of Alaska under section 46.03.100 of the Alaska 
Statutes.
    ``(2) The Secretary shall transfer any appropriations received under 
paragraph (1) to the State of Alaska for the benefit of rural and Native 
villages in Alaska for obligation under section 303 of Public Law 104-
182, except that subsection (b) of that section shall not apply to those 
funds.
    ``(3) In order to be eligible to receive financial assistance under 
this subsection, not later than 180 days after the date of enactment of 
this paragraph, each of the Cities of St. Paul and St. George shall 
enter into a written agreement with the State of Alaska under which such 
City shall identify by its legal boundaries the

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

tract or tracts of land that such City has selected as the site for its 
solid waste management facility and any supporting infrastructure.
    ``(c) There are authorized to be appropriated to the Secretary for 
fiscal years 2001, 2002, 2003, 2004, and 2005--
            ``(1) for assistance under subsection (a) a total not to 
        exceed--
                    ``(A) $9,000,000, for grants to the City of St. 
                Paul;
                    ``(B) $6,300,000, for grants to the Tanadgusix 
                Corporation;
                    ``(C) $1,500,000, for grants to the St. Paul Tribal 
                Council;
                    ``(D) $6,000,000, for grants to the City of St. 
                George;
                    ``(E) $4,200,000, for grants to the St. George Tanaq 
                Corporation; and
                    ``(F) $1,000,000, for grants to the St. George 
                Tribal Council; and
            ``(2) for assistance under subsection (b), for fiscal years 
        2001, 2002, 2003, 2004, and 2005 a total not to exceed--
                    ``(A) $6,500,000 for the City of St. Paul; and
                    ``(B) $3,500,000 for the City of St. George.

    ``(d) None of the funds authorized by this section may be available 
for any activity a purpose of which is to influence legislation pending 
before the Congress, except that this subsection shall not prevent 
officers or employees of the United States or of its departments, 
agencies, or commissions from communicating to Members of Congress, 
through proper channels, requests for legislation or appropriations that 
they consider necessary for the efficient conduct of public business.
    ``(e) Neither the United States nor any of its agencies, officers, 
or employees shall have any liability under this Act or any other law 
associated with or resulting from the designing, locating, contracting 
for, redeveloping, permitting, certifying, operating, or maintaining any 
solid waste management facility on the Pribilof Islands as a consequence 
of--
            ``(1) having provided assistance to the State of Alaska 
        under subsection (b); or
            ``(2) providing funds for, or planning, constructing, or 
        operating, any interim solid waste management facilities that 
        may be required by the State of Alaska before permanent solid 
        waste management facilities constructed with assistance provided 
        under subsection (b) are complete and operational.

    ``(f ) Each entity which receives assistance authorized under 
subsection (c) shall submit an audited statement listing the expenditure 
of that assistance to the Committee on Appropriations and the Committee 
on Resources of the House of Representatives and the Committee on 
Appropriations and the Committee on Commerce, Science, and 
Transportation of the Senate, on the last day of fiscal years 2002, 
2004, and 2006.
    ``(g) Amounts authorized under subsection (c) are intended by 
Congress to be provided in addition to the base funding appropriated to 
the National Oceanic and Atmospheric Administration in fiscal year 
2000.''.
    (4) Section 205 of the Fur Seal Act of 1966 (16 U.S.C. 1165) is 
amended--
            (A) by amending subsection (c) to read as follows:

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

    ``(c) Not later than 3 months after the date of the enactment of the 
Pribilof Islands Transition Act, the Secretary shall submit to the 
Committee on Commerce, Science, and Transportation of the Senate and the 
Committee on Resources of the House of Representatives a report that 
includes--
            ``(1) a description of all property specified in the 
        document referred to in subsection (a) that has been conveyed 
        under that subsection;
            ``(2) a description of all Federal property specified in the 
        document referred to in subsection (a) that is going to be 
        conveyed under that subsection; and
            ``(3) an identification of all Federal property on the 
        Pribilof Islands that will be retained by the Federal Government 
        to meet its responsibilities under this Act, the Convention, and 
        any other applicable law.''; and
            (B) by striking subsection (g).

    (5)(A)(i) The Secretary of Commerce shall not be considered to have 
any obligation to promote or otherwise provide for the development of 
any form of an economy not dependent on sealing on the Pribilof Islands, 
Alaska, including any obligation under section 206 of the Fur Seal Act 
of 1966 (16 U.S.C. 1166) or section 3(c)(1)(A) of Public Law 104-91 (16 
U.S.C. 1165 note).
    (ii) This subparagraph shall not affect any cause of action under 
section 206 of the Fur Seal Act of 1966 (16 U.S.C. 1166) or section 
3(c)(1)(A) of Public Law 104-91 (16 U.S.C. 1165 note)--
            (I) that arose before the date of the enactment of this 
        title; and
            (II) for which a judicial action is filed before the 
        expiration of the 5-year period beginning on the date of the 
        enactment of this title.

    (iii) Nothing in this subsection shall be construed to imply that--
            (I) any obligation to promote or otherwise provide for the 
        development in the Pribilof Islands of any form of an economy 
        not dependent on sealing was or was not established by section 
        206 of the Fur Seal Act of 1966 (16 U.S.C. 1166), section 
        3(c)(1)(A) of Public Law 104-91 (16 U.S.C. 1165 note), or any 
        other provision of law; or
            (II) any cause of action could or could not arise with 
        respect to such an obligation.

    (iv) Section 3(c)(1) of Public Law 104-91 (16 U.S.C. 1165 note) is 
amended by striking subparagraph (A) and redesignating subparagraphs (B) 
through (D) in order as subparagraphs (A) through (C).
    (B)(i) Subject to paragraph (5)(B)(ii), there are terminated all 
obligations of the Secretary of Commerce and the United States to--
            (I) convey property under section 205 of the Fur Seal Act of 
        1966 (16 U.S.C. 1165); and
            (II) carry out cleanup activities, including assessment, 
        response, remediation, and monitoring, except for postremedial 
        measures such as monitoring and operation and maintenance 
        activities related to National Oceanic and Atmospheric 
        Administration administration of the Pribilof Islands, Alaska, 
        under section 3 of Public Law 104-91 (16 U.S.C. 1165 note) and 
        the Pribilof Islands Environmental Restoration Agreement

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

        between the National Oceanic and Atmospheric Administration and 
        the State of Alaska, signed January 26, 1996.

    (ii) Paragraph (5)(B)(i) shall apply on and after the date on which 
the Secretary of Commerce certifies that--
            (I) the State of Alaska has provided written confirmation 
        that no further corrective action is required at the sites and 
        operable units covered by the Pribilof Islands Environmental 
        Restoration Agreement between the National Oceanic and 
        Atmospheric Administration and the State of Alaska, signed 
        January 26, 1996, with the exception of postremedial measures, 
        such as monitoring and operation and maintenance activities;
            (II) the cleanup required under section 3(a) of Public Law 
        104-91 (16 U.S.C. 1165 note) is complete;
            (III) the properties specified in the document referred to 
        in subsection (a) of section 205 of the Fur Seal Act of 1966 (16 
        U.S.C. 1165(a)) can be unconditionally offered for conveyance 
        under that section; and
            (IV) all amounts appropriated under section 206(c)(1) of the 
        Fur Seal Act of 1966, as amended by this title, have been 
        obligated.

    (iii)(I) On and after the date on which section 3(b)(5) of Public 
Law 104-91 (16 U.S.C. 1165 note) is repealed pursuant to subparagraph 
(C), the Secretary of Commerce may not seek or require financial 
contribution by or from any local governmental entity of the Pribilof 
Islands, any official of such an entity, or the owner of land on the 
Pribilof Islands, for cleanup costs incurred pursuant to section 3(a) of 
Public Law 104-91 (as in effect before such repeal), except as provided 
in subparagraph (B)(iii)(II).
            (II) Subparagraph (B)(iii)(I) shall not limit the authority 
        of the Secretary of Commerce to seek or require financial 
        contribution from any person for costs or fees to clean up any 
        matter that was caused or contributed to by such person on or 
        after March 15, 2000.

    (iv) For purposes of paragraph (2)(C), the following requirements 
shall not be considered to be conditions on conveyance of property:
            (I) Any requirement that a potential transferee must allow 
        the National Oceanic and Atmospheric Administration continued 
        access to the property to conduct environmental monitoring 
        following remediation activities.
            (II) Any requirement that a potential transferee must allow 
        the National Oceanic and Atmospheric Administration access to 
        the property to continue the operation, and eventual closure, of 
        treatment facilities.
            (III) Any requirement that a potential transferee must 
        comply with institutional controls to ensure that an 
        environmental cleanup remains protective of human health or the 
        environment that do not unreasonably affect the use of the 
        property.
            (IV) Valid existing rights in the property, including rights 
        granted by contract, permit, right-of-way, or easement.
            (V) The terms of the documents described in subparagraph 
        (D)(ii).

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

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

            (i) Section 205 of the Fur Seal Act of 1966 (16 U.S.C. 
        1165).
            (ii) Section 3 of Public Law 104-91 (16 U.S.C. 1165 note).

    (D)(i) Nothing in this subsection shall affect any obligation of the 
Secretary of Commerce, or of any Federal department or agency, under or 
with respect to any document described in subparagraph (D)(ii) or with 
respect to any lands subject to such a document.
    (ii) The documents referred to in subparagraph (D)(i) are the 
following:
            (I) The Transfer of Property on the Pribilof Islands: 
        Description, Terms, and Conditions, dated February 10, 1984, 
        between the Secretary of Commerce and various Pribilof Island 
        entities.
            (II) The Settlement Agreement between Tanadgusix Corporation 
        and the City of St. Paul, dated January 11, 1988, and approved 
        by the Secretary of Commerce on February 23, 1988.
            (III) The Memorandum of Understanding between Tanadgusix 
        Corporation, Tanaq Corporation, and the Secretary of Commerce, 
        dated December 22, 1976.

    (E)(i) Except as provided in subparagraph (E)(ii), the definitions 
set forth in section 101 of the Fur Seal Act of 1966 (16 U.S.C. 1151) 
shall apply to this paragraph.
    (ii) For purposes of this paragraph, the term ``Natives of the 
Pribilof Islands'' includes the Tanadgusix Corporation, the St. George 
Tanaq Corporation, and the city governments and tribal councils of St. 
Paul and St. George, Alaska.
    (6)(A) Section 3 of Public Law 104-91 (16 U.S.C. 1165 note) and the 
Fur Seal Act of 1966 (16 U.S.C. 1151 et seq.) are amended by--
            (i) striking ``(d)'' and all that follows through the 
        heading for subsection (d) of section 3 of Public Law 104-91 and 
        inserting ``Sec. 212.''; and
            (ii) moving and redesignating such subsection so as to 
        appear as section 212 of the Fur Seal Act of 1966.

    (B) Section 201 of the Fur Seal Act of 1966 (16 U.S.C. 1161) is 
amended by striking ``on such Islands'' and insert ``on such property''.
    (C) The Fur Seal Act of 1966 (16 U.S.C. 1151 et seq.) is amended by 
inserting before title I the following:
    ``Section 1. This Act may be cited as the `Fur Seal Act of 1966'.''.
    (7) Section 3 of Public Law 104-91 (16 U.S.C. 1165 note) is 
amended--
            (A) by striking subsection (f ) and inserting the following:

    ``(f )(1) There are authorized to be appropriated $10,000,000 for 
each of fiscal years 2001, 2002, 2003, 2004, and 2005 for the purposes 
of carrying out this section.
    ``(2) None of the funds authorized by this subsection may be 
expended for the purpose of cleaning up or remediating any landfills, 
wastes, dumps, debris, storage tanks, property, hazardous or unsafe 
conditions, or contaminants, including petroleum products and their 
derivatives, left by the Department of Defense or any of its components 
on lands on the Pribilof Islands, Alaska.''; and
            (B) by adding at the end the following:

    ``(g)(1) Of amounts authorized under subsection (f ) for each of 
fiscal years 2001, 2002, 2003, 2004, and 2005, the Secretary

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

may provide to the State of Alaska up to $2,000,000 per fiscal year to 
capitalize a revolving fund to be used by the State for loans under this 
subsection.
    ``(2) The Secretary shall require that any revolving fund 
established with amounts provided under this subsection shall be used 
only to provide low-interest loans to Natives of the Pribilof Islands to 
assess, respond to, remediate, and monitor contamination from lead 
paint, asbestos, and petroleum from underground storage tanks.
    ``(3) The definitions set forth in section 101 of the Fur Seal Act 
of 1966 (16 U.S.C. 1151) shall apply to this section, except that the 
term `Natives of the Pribilof Islands' includes the Tanadgusix and Tanaq 
Corporations.
    ``(4) Before the Secretary may provide any funds to the State of 
Alaska under this section, the State of Alaska and the Secretary must 
agree in writing that, on the last day of fiscal year 2011, and of each 
fiscal year thereafter until the full amount provided to the State of 
Alaska by the Secretary under this section has been repaid to the United 
States, the State of Alaska shall transfer to the Treasury of the United 
States monies remaining in the revolving fund, including principal and 
interest paid into the revolving fund as repayment of loans.''.
    (f )(1) The President, after consultation with the Governor of the 
State of Hawaii, may designate any Northwestern Hawaiian Islands coral 
reef or coral reef ecosystem as a coral reef reserve to be managed by 
the Secretary of Commerce.
    (2) Upon the designation of a reserve under paragraph (1) by the 
President, the Secretary shall--
            (A) take action to initiate the designation of the reserve 
        as a National Marine Sanctuary under sections 303 and 304 of the 
        National Marine Sanctuaries Act (16 U.S.C. 1433);
            (B) establish a Northwestern Hawaiian Islands Reserve 
        Advisory Council under section 315 of that Act (16 U.S.C. 
        1445a), the membership of which shall include at least one 
        representative from Native Hawaiian groups; and
            (C) until the reserve is designated as a National Marine 
        Sanctuary, manage the reserve in a manner consistent with the 
        purposes and policies of that Act.

    (3) Notwithstanding any other provision of law, no closure areas 
around the Northwestern Hawaiian Islands shall become permanent without 
adequate review and comment.
    (4) The Secretary shall work with other Federal agencies and the 
Director of the National Science Foundation, to develop a coordinated 
plan to make vessels and other resources available for conservation or 
research activities for the reserve.
    (5) If the Secretary has not designated a national marine sanctuary 
in the Northwestern Hawaiian Islands under sections 303 and 304 of the 
National Marine Sanctuaries Act (16 U.S.C. 1433, 1434) before October 1, 
2005, the Secretary shall conduct a review of the management of the 
reserve under section 304(e) of that Act (16 U.S.C. 1434(e)).
    (6) No later than 6 months after the date of enactment of this Act, 
the Secretary shall submit a report to the Senate Committee on Commerce, 
Science, and Transportation and the House of Representatives Committee 
on Resources, describing actions taken to implement this subsection, 
including costs of monitoring, enforcing, and addressing marine debris, 
and the extent to which the

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

fiscal or other resources necessary to carry out this subsection are 
reflected in the Budget of the United States Government submitted by the 
President under section 1104 of title 31, United States Code.
    (7) There are authorized to be appropriated to the Secretary of 
Commerce to carry out the provisions of this subsection such sums, not 
exceeding $4,000,000 for each of fiscal years 2001, 2002, 2003, 2004, 
and 2005, as are reported under paragraph (5) to be reflected in the 
Budget of the United States Government.
    (g) Section 111(b)(1) of the Sustainable Fisheries Act (16 U.S.C. 
1855 nt) is amended by striking the last sentence and inserting, ``There 
are authorized to be appropriated to carry out this subsection $500,000 
for each fiscal year.''.
    Sec. 145. (a) Section 4(b)(1) of the Department of State Special 
Agents Retirement Act of 1998 (22 U.S.C. 4044 note; Public Law 105-382; 
112 Stat. 3409) is amended by inserting ``or participant who was serving 
as of January 1, 1997'' after ``employed participant''.
    (b) The amendment made by this section shall take effect on January 
1, 2001.

    Sec. 146. (a) Congress makes the following findings:
            (1) Total steel imports in 2000 will be over 2\1/2\ times 
        higher than in 1991, continuing the alarming trend of sharply 
        increasing steel imports over the past decade.
            (2) Unprecedented levels of steel imports flooded the United 
        States market in 1998 and 1999, causing a crisis in which 
        thousands of steelworkers were laid off and six steel companies 
        went bankrupt.
            (3) The domestic steel industry still has not had an 
        opportunity to recover from the 1998-1999 steel import crisis, 
        and steel imports are again causing serious injury to United 
        States steel producers and workers.
            (4) Total steel imports through August 2000 are 17 percent 
        higher than over the same period in 1999 and greater even than 
        imports over the same period in 1998, a record year.
            (5) Steel prices continue to be depressed, with hot-rolled 
        steel prices 12 percent lower in August 2000 than in the first 
        quarter of 1998, and average import customs values for all steel 
        products more than 15 percent lower over the same period.
            (6) The United States Government must maintain and fully 
        enforce all existing relief against foreign unfair trade.
            (7) The United States steel industry is a clean, highly 
        efficient industry having modernized itself at great human and 
        financial cost, shedding over 330,000 jobs and investing more 
        than $50,000,000,000 over the last 20 years.
            (8) Capacity utilization in the United States steel industry 
        has fallen sharply since the beginning of the year and the 
        market capitalization and debt ratings of the major United 
        States steel firms are at precarious levels.
            (9) The Department of Commerce recently documented the 
        underlying market-distorting practices and longstanding 
        structural problems that plague the global steel trade with 
        excess capacity and cause diversion of unfairly traded foreign 
        steel to the United States.
            (10) The President recognized that unfair trade played a 
        significant role in the devastating import surge of steel and 
        recognized the need to vigorously enforce the trade laws.

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

    (b) Congress calls upon the President--
            (1) to take all appropriate action within his power to 
        provide relief from injury caused by steel imports; and
            (2) to immediately request the United States International 
        Trade Commission to commence an expedited investigation for 
        positive adjustment under section 201 of the Trade Act of 1974 
        of such steel imports.

    Sec. 147. Section 5(b)(1) of the Act of January 2, 1951 (15 U.S.C. 
1175(b)(1); popularly known as the ``Johnson Act'') is amended by 
inserting ``for a voyage or a segment of a voyage that begins and ends 
in the State of Hawaii, or'' after ``Except''.
    Sec. 148. (a) Section 312(a)(7) of the Communications Act of 1934 
(47 U.S.C. 312(a)(7)) is amended by inserting ``, other than a non-
commercial educational broadcast station,'' after ``use of a 
broadcasting station''.
    (b) The Federal Communications Commission shall take no action 
against any non-commercial educational broadcast station which declines 
to carry a political advertisement.
    Sec. 149. The Small Business Innovation Research program, otherwise 
expiring at the end of fiscal year 2000, is authorized to continue in 
effect during fiscal year 2001.
    Sec. 150. There is hereby appropriated for payment to the Ricky Ray 
Hemophilia Relief Fund, as provided by Public Law 105-369, $105,000,000, 
of which notwithstanding any other provision of law $10,000,000 shall be 
for program management of the Health Resources and Services 
Administration, to remain available until expended.
    Sec. 151. (a) There is hereby appropriated to a separate account to 
be established in the Department of Labor for expenses of administering 
the Energy Employees Occupational Illness Compensation Act, $60,400,000, 
to remain available until expended: Provided, That the Secretary of 
Labor is authorized to transfer to any Executive agency with authority 
under the Energy Employees Occupational Illness Compensation Act, such 
sums as may be necessary in FY 2001 to carry out those authorities.
    (b) For purposes of the Balanced Budget and Emergency Deficit 
Control Act of 1985, amounts appropriated under subsection (a) shall be 
direct spending: Provided, That amounts appropriated annually thereafter 
for such administrative expenses shall be direct spending.
    Sec. 152. Treatment of Certain Cancer Hospitals. (a) In General.--
Section 1886(d)(1)(B)(v) of the Social Security Act (42 U.S.C. 
1395ww(d)(1)(B)(v)) is amended--
            (1) in subclause (I) by striking ``or'' at the end;
            (2) in subclause (II) by striking the semicolon at the end 
        and inserting ``, or''; and
            (3) by adding at the end the following:
            ``(III) a hospital that was recognized as a clinical cancer 
        research center by the National Cancer Institute of the National 
        Institutes of Health as of February 18, 1998, that has never 
        been reimbursed for inpatient hospital services pursuant to a 
        reimbursement system under a demonstration project under section 
        1814(b), that is a freestanding facility organized primarily for 
        treatment of and research on cancer and is not a unit of another 
        hospital, that as of the date of the enactment of this 
        subclause, is licensed for 162 acute care beds, and that 
        demonstrates for the 4-year period ending on June 30,

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

        1999, that at least 50 percent of its total discharges have a 
        principal finding of neoplastic disease, as defined in 
        subparagraph (E);'' and

    (b) Conforming Amendment.--Section 1886(d)(1)(E) of the Social 
Security Act (42 U.S.C. 1395ww(d)(1)(E)) is amended by striking ``For 
purposes of subparagraph (B)(v)(II)'' and inserting ``For purposes of 
subclauses (II) and (III) of subparagraph (B)(v)''.
    (c) Payment.--
            (1) Application to cost reporting periods.--Any 
        classification by reason of section 1886(d)(1)(B)(v)(III) of the 
        Social Security Act (as added by subsection (a)) shall apply to 
        12-month cost reporting periods beginning on or after July 1, 
        1999.
            (2) Base year.--Notwithstanding the provisions of section 
        1886(b)(3)(E) of such Act (42 U.S.C. 1395ww(b)(3)(E)) or other 
        provisions to the contrary, the base cost reporting period for 
        purposes of determining the target amount for any hospital 
        classified by reason of section 1886(d)(1)(B)(v)(III) of such 
        Act (as added by subsection (a)) shall be the 12-month cost 
        reporting period beginning on July 1, 1995.
            (3) Deadline for payments.--Any payments owed to a hospital 
        by reason of this subsection shall be made expeditiously, but in 
        no event later than 1 year after the date of the enactment of 
        this Act.

    Sec. 153. (a) Section 4(2) of the Delta Development Act (42 U.S.C. 
3121 note; Public Law 100-460) is amended--
            (1) by inserting ``Alabama,'' before ``Arkansas'';
            (2) in paragraph (G), by striking ``and'' at the end;
            (3) in paragraph (H)--
                    (A) by striking ``and'' before ``such''; and
                    (B) by inserting ``and'' after the semicolon at the 
                end; and
            (4) by adding at the end the following:
                    ``(I) the Alabama counties of Pickens, Greene, 
                Sumter, Choctaw, Clarke, Washington, Marengo, Hale, 
                Perry, Wilcox, Lowndes, Bullock, Macon, Barbour, 
                Russell, and Dallas;'';

    (b) At the end of section 382A of ``The Delta Regional Authority Act 
of 2000'' as incorporated in this Act, insert the following:
            ``(4) Notwithstanding any other provision of law, the State 
        of Alabama shall be a full member of the Delta Regional 
        Authority and shall be entitled to all rights and privileges 
        that said membership affords to all other participating States 
        in the Delta Regional Authority.''.

SEC. 154. NORTHERN WISCONSIN.

    (a) Definition of Northern Wisconsin.--In this section, the term 
``northern Wisconsin'' means the counties of Douglas, Ashland, Bayfield, 
and Iron, Wisconsin.
    (b) Establishment of Program.--The Secretary of the Army may 
establish a pilot program to provide environmental assistance to non-
Federal interests in northern Wisconsin.
    (c) Form of Assistance.--Assistance under this section may be in the 
form of design and reconstruction assistance or water-related 
environmental infrastructure and resource protection and development 
projects in northern Wisconsin, including projects for wastewater 
treatment and related facilities, water supply and

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

related facilities, environmental restoration, and surface water 
resource protection and development.
    (d) Public Ownership Requirement.--The Secretary may provide 
assistance for a project under this section only if the project is 
publicly owned.
    (e) Local Cooperation Agreement.--
            (1) In general.--Before providing assistance under this 
        section, the Secretary shall enter into a local cooperation 
        agreement with a non-Federal interest to provide for design and 
        construction of the project to be carried out with the 
        assistance.
            (2) Requirements.--Each local cooperation agreement entered 
        into under this subsection shall provide for the following:
                    (A) Plan.--Development by the Secretary, in 
                consultation with appropriate Federal and State 
                officials, of a facilities or restructure protection and 
                development plan, including appropriate engineering 
                plans and specifications.
                    (B) Legal and Institutional Structures.--
                Establishment of such legal and institutional structures 
                as are necessary to ensure the effective long-term 
                operation of the project by the non-Federal interest.
            (3) Cost sharing.--
                    (A) In general.--The Federal share of project costs 
                under each local cooperation agreement entered into 
                under this subsection shall be 75 percent. The Federal 
                share may be in the form of grants or reimbursements of 
                project costs.
                    (B) Credit for design work.--The non-Federal 
                interest shall receive credit for the reasonable costs 
                of design work completed by the non-Federal interest 
                before entering into a local cooperation agreement with 
                the Secretary for a project. The credit for the design 
                work shall not exceed 6 percent of the local 
                construction costs of the project.
                    (C) Credit for interest.--In case of a delay in the 
                funding of the non-Federal share of the costs of a 
                project that is the subject of an agreement under this 
                subsection, the non-Federal interest shall receive 
                credit for reasonable interest incurred in providing the 
                non-Federal share of the project's costs.
                    (D) Land, easements, and rights-of-way credit.--The 
                non-Federal interest shall receive credit for land, 
                easements, rights-of-way, and reductions toward the non-
                Federal share of project costs (including all reasonable 
                costs associated with obtaining permits necessary for 
                the construction, operation, and maintenance of the 
                project on publicly owned or controlled land), but not 
                to exceed 25 percent of the total project costs.
                    (E) Operation and maintenance.--The non-Federal 
                share of operation and maintenance costs for projects 
                constructed with assistance provided under this section 
                shall be 100 percent.

    (f ) Applicability of Other Federal And State Laws.--Nothing in this 
section waives, limits, or otherwise affects the applicability of any 
provision of Federal or State law that would otherwise apply to a 
project to be carried out with assistance provided under this section.

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

    (g) Report.--Not later than December 31, 2001, the Secretary shall 
transmit to Congress a report on the results of the pilot program 
carried out under this section, including recommendations concerning 
whether the program should be implemented on a national basis.
    (h) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $40,000,000. Such sums shall 
remain available until expended.

           TITLE II--VIETNAM EDUCATION FOUNDATION ACT OF 2000

SEC. 201. SHORT TITLE.

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

SEC. 202. PURPOSES.

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

SEC. 203. DEFINITIONS.

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

SEC. 204. ESTABLISHMENT.

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

SEC. 205. BOARD OF DIRECTORS.

    (a) In General.--The Foundation shall be subject to the supervision 
and direction of the Board of Directors, which shall consist of 13 
members, as follows:

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

            (1) Two members of the House of Representatives appointed by 
        the Speaker of the House of Representatives, one of whom shall 
        be appointed upon the recommendation of the Majority Leader and 
        one of whom shall be appointed upon the recommendation of the 
        Minority Leader, and who shall serve as ex officio, nonvoting 
        members.
            (2) Two members of the Senate, appointed by the President 
        pro tempore, one of whom shall be appointed upon the 
        recommendation of the Majority Leader and one of whom shall be 
        appointed upon the recommendation of the Minority Leader, and 
        who shall serve as ex officio, nonvoting members.
            (3) Secretary of State.
            (4) Secretary of Education.
            (5) Secretary of Treasury.
            (6) Six members to be appointed by the President from among 
        individuals in the nongovernmental sector who have academic 
        excellence or experience in the fields of concentration 
        specified in section 202(1)(A) or a general knowledge of 
        Vietnam, not less than three of whom shall be drawn from 
        academic life.

    (b) Rotation of Membership.--(1) The term of office of each member 
appointed under subsection (a)(6) shall be 3 years, except that of the 
members initially appointed under that subsection, two shall serve for 
terms of 1 year, two shall serve for terms of 2 years, and two shall 
serve for terms of 3 years.
    (2) A member of Congress appointed under subsection (a)(1) or (2) 
shall not serve as a member of the Board for more than a total of 6 
years.
    (c) Chair.--The Board shall elect one of the members appointed under 
subsection (a)(6) to serve as Chair.
    (d) Meetings.--The Board shall meet upon the call of the Chair but 
not less frequently than twice each year. A majority of the voting 
members of the Board shall constitute a quorum.
    (e) Duties.--The Board shall--
            (1) select the individuals who will be eligible to serve as 
        Fellows; and
            (2) provide overall supervision and direction of the 
        Foundation.

    (f ) Compensation.--
            (1) In general.--Except as provided in paragraph (2), each 
        member of the Board shall serve without compensation, and 
        members who are officers or employees of the United States shall 
        serve without compensation in addition to that received for
their services as officers or employees of the United States.
            (2) Travel expenses.--The members of the Board shall be 
        allowed travel expenses, including per diem in lieu of 
        subsistence, at rates authorized for employees of agencies under 
        subchapter I of chapter 57 of title 5, United States Code, while 
        away from their homes or regular places of business in the 
        performance of service for the Board.

SEC. 206. FELLOWSHIP PROGRAM.

    (a) Award of Fellowships.--
            (1) In general.--To carry out the purposes of this title, 
        the Foundation shall award fellowships to--
                    (A) Vietnamese nationals to study at institutions of 
                higher education in the United States at graduate and

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

                post-graduate levels in the following fields: physical 
                sciences, natural sciences, mathematics, environmental 
                sciences, medicine, technology, and computer sciences; 
                and
                    (B) United States citizens to teach in Vietnam in 
                appropriate Vietnamese institutions in the fields of 
                study described in subparagraph (A).
            (2) Special emphasis on scientific and technical vocabulary 
        in english.--Fellowships awarded under paragraph (1) may include 
        funding for the study of scientific and technical vocabulary in 
        English.

    (b) Criteria for Selection.--Fellowships under this title shall be 
awarded to persons who meet the minimum criteria established by the 
Foundation, including the following:
            (1) Vietnamese nationals.--Vietnamese candidates for 
        fellowships shall have basic English proficiency and must have 
        the ability to meet the criteria for admission into graduate or 
        post-graduate programs in United States institutions of higher 
        learning.
            (2) United states citizen teachers.--American teaching 
        candidates shall be highly competent in their fields and be 
        experienced and proficient teachers.

    (c) Implementation.--The Foundation may provide, directly or by 
contract, for the conduct of nationwide competition for the purpose of 
selecting recipients of fellowships awarded under this section.
    (d) Authority To Award Fellowships on a Matching Basis.--The 
Foundation may require, as a condition of the availability of funds for 
the award of a fellowship under this title, that an institution of 
higher education make available funds for such fellowship on a matching 
basis.
    (e) Fellowship Conditions.--A person awarded a fellowship under this 
title may receive payments authorized under this title only during such 
periods as the Foundation finds that the person is maintaining 
satisfactory proficiency and devoting full time to study or teaching, as 
appropriate, and is not engaging in gainful employment other than 
employment approved by the Foundation pursuant to regulations of the 
Board.
    (f ) Funding.--
            (1) Fiscal year 2001.--
                    (A) Authorization of appropriations.--There are 
                authorized to be appropriated to the Foundation 
                $5,000,000 for fiscal year 2001 to carry out the 
                activities of the Foundation.
                    (B) Availability of funds.--Amounts appropriated 
                pursuant to subparagraph (A) are authorized to remain 
                available until expended.
            (2) Fiscal year 2002 and subsequent fiscal years.--Effective 
        October 1, 2001, the Foundation shall utilize funds transferred 
        to the Foundation under section 207.

SEC. 207. VIETNAM DEBT REPAYMENT FUND.

    (a) Establishment.--Notwithstanding any other provision of law, 
there is established in the Treasury a separate account which shall be 
known as the Vietnam Debt Repayment Fund (in this subsection referred to 
as the ``Fund'').
    (b) Deposits.--There shall be deposited as offsetting receipts into 
the Fund all payments (including interest payments) made

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

by the Socialist Republic of Vietnam under the United States-Vietnam 
debt agreement.
    (c) Availability of the Funds.--
            (1) Fiscal year limitation.--Beginning with fiscal year 
        2002, and each subsequent fiscal year through fiscal year 2018, 
        $5,000,000 of the amounts deposited into the Fund (or accrued 
        interest) each fiscal year shall be available to the Foundation, 
        without fiscal year limitation, under paragraph (2).
            (2) Disbursement of funds.--The Secretary of the Treasury, 
        at least on a quarterly basis, shall transfer to the Foundation 
        amounts allotted to the Foundation under paragraph (1) for the 
        purpose of carrying out its activities.
            (3) Transfer of excess funds to miscellaneous receipts.--
        Beginning with fiscal year 2002, and each subsequent fiscal year 
        through fiscal year 2018, the Secretary of the Treasury shall 
        withdraw from the Fund and deposit in the Treasury of the United 
        States as miscellaneous receipts all moneys in the Fund in 
        excess of amounts made available to the Foundation under 
        paragraph (1).

    (d) Annual Report.--The Board shall prepare and submit annually to 
Congress statements of financial condition of the Fund, including the 
beginning balance, receipts, refunds to appropriations, transfers to the 
general fund, and the ending balance.

SEC. 208. FOUNDATION PERSONNEL MATTERS.

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

SEC. 209. ADMINISTRATIVE PROVISIONS.

    (a) In General.--In order to carry out this title, the Foundation 
may--

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

            (1) prescribe such regulations as it considers necessary 
        governing the manner in which its functions shall be carried 
        out;
            (2) receive money and other property donated, bequeathed, or 
        devised, without condition or restriction other than it be used 
        for the purposes of the Foundation, and to use, sell, or 
        otherwise dispose of such property for the purpose of carrying 
        out its functions;
            (3) accept and use the services of voluntary and 
        noncompensated personnel;
            (4) enter into contracts or other arrangements, or make 
        grants, to carry out the provisions of this title, and enter 
        into such contracts or other arrangements, or make such grants, 
        with the concurrence of a majority of the members of the Board, 
        without performance or other bonds and without regard to section 
        3709 of the Revised Statutes (41 U.S.C. 5);
            (5) rent office space in the District of Columbia; and
            (6) make other necessary expenditures.

    (b) Annual Report.--The Foundation shall submit to the President and 
to the Committee on Foreign Relations of the Senate and the Committee on 
International Relations of the House of Representatives an annual report 
of its operations under this title.

SEC. 210. TERMINATION.

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

        TITLE III--COLORADO UTE SETTLEMENT ACT AMENDMENTS OF 2000

SEC. 301. SHORT TITLE; FINDINGS; DEFINITIONS.

    (a) Short Title.--This title may be cited as the ``Colorado Ute 
Settlement Act Amendments of 2000''.
    (b) Findings.--Congress makes the following findings:
            (1) In order to provide for a full and final settlement of 
        the claims of the Colorado Ute Indian Tribes on the Animas and 
        La Plata Rivers, the Tribes, the State of Colorado, and certain 
        of the non-Indian parties to the Agreement have proposed certain 
        modifications to the Colorado Ute Indian Water Rights Settlement 
        Act of 1988 (Public Law 100-585; 102 Stat. 2973).
            (2) The claims of the Colorado Ute Indian Tribes on all 
        rivers in Colorado other than the Animas and La Plata Rivers 
        have been settled in accordance with the provisions of the 
        Colorado Ute Indian Water Rights Settlement Act of 1988 (Public 
        Law 100-585; 102 Stat. 2973).
            (3) The Indian and non-Indian communities of southwest 
        Colorado and northwest New Mexico will be benefited by a 
        settlement of the tribal claims on the Animas and La Plata 
        Rivers that provides the Tribes with a firm water supply without 
        taking water away from existing uses.
            (4) The Agreement contemplated a specific timetable for the 
        delivery of irrigation and municipal and industrial water

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

        and other benefits to the Tribes from the Animas-La Plata 
        Project, which timetable has not been met. The provision of 
        irrigation water can not presently be satisfied under the 
        current implementation of the Federal Water Pollution Control 
        Act (33 U.S.C. 1251 et seq.) and the Endangered Species Act of 
        1973 (16 U.S.C. 1531 et seq.).
            (5) In order to meet the requirements of the Endangered 
        Species Act of 1973 (16 U.S.C. 1531 et seq.), and in particular 
        the various biological opinions issued by the Fish and Wildlife 
        Service, the amendments made by this title are needed to provide 
        for a significant reduction in the facilities and water supply 
        contemplated under the Agreement.
            (6) The substitute benefits provided to the Tribes under the 
        amendments made by this title, including the waiver of capital 
        costs and the provisions of funds for natural resource 
        enhancement, result in a settlement that provides the Tribes 
        with benefits that are equivalent to those that the Tribes would 
        have received under the Colorado Ute Indian Water Rights 
        Settlement Act of 1988 (Public Law 100-585; 102 Stat. 2973).
            (7) The requirement that the Secretary of the Interior 
        comply with the National Environmental Policy Act of 1969 (42 
        U.S.C. 4321 et seq.) and other national environmental laws 
        before implementing the proposed settlement will ensure that the 
        satisfaction of the tribal water rights is accomplished in an 
        environmentally responsible fashion.
            (8) In considering the full range of alternatives for 
        satisfying the water rights claims of the Southern Ute Indian 
        Tribe and Ute Mountain Ute Indian Tribe, Congress has held 
        numerous legislative hearings and deliberations, and reviewed 
        the considerable record including the following documents:
                    (A) The Final EIS No. INT-FES-80-18, dated July 1, 
                1980.
                    (B) The Draft Supplement to the FES No. INT-DES-92-
                41, dated October 13, 1992.
                    (C) The Final Supplemental to the FES No. 96-23, 
                dated April 26, 1996;
                    (D) The Draft Supplemental EIS, dated January 14, 
                2000.
                    (E) The Final Supplemental EIS, dated July 2000.
                    (F) The Record of Decision for the Settlement of the 
                Colorado Ute Indian Waters, September 25, 2000.
            (9) In the Record of Decision referred to in paragraph 
        (8)(F), the Secretary determined that the preferred alternative 
        could only proceed if Congress amended the Colorado Ute Indian 
        Water Rights Settlement Act of 1988 (Public Law 100-585; 102 
        Stat. 2973) so as to satisfy the Tribal water rights claim 
        through the construction of the features authorized by this 
        title. The amendments to the Colorado Ute Indian Water Rights 
        Settlement Act of 1988 set forth in this title will provide the 
        Ute Tribes with substitute benefits equivalent to those that the 
        Tribes would have received under the Colorado Ute Indian Water 
        Rights Settlement Act of 1988, in a manner consistent with 
        paragraph (8) and the Federal Government's trust obligation.
            (10) Based upon paragraph (8), it is the intent of Congress 
        to enact legislation that implements the Record of Decision 
        referred to in paragraph (8)(F).

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

    (c) Definitions.--In this title:
            (1) Agreement.--The term ``Agreement'' has the meaning given 
        that term in section 3(1) of the
Colorado Ute Indian Water Rights Settlement Act of 1988 (Public Law 100-
585; 102 Stat. 2973).
            (2) Animas-la plata project.--The term ``Animas-La Plata 
        Project'' has the meaning given that term in section 3(2) of the 
        Colorado Ute Indian Water Rights Settlement Act of 1988 (Public 
        Law 100-585; 102 Stat. 2973).
            (3) Dolores project.--The term ``Dolores Project'' has the 
        meaning given that term in section 3(3) of the Colorado Ute 
        Indian Water Rights Settlement Act of 1988 (Public Law 100-585; 
        102 Stat. 2974).
            (4) Tribe; tribes.--The term ``Tribe'' or ``Tribes'' has the 
        meaning given that term in section 3(6) of the Colorado Ute 
        Indian Water Rights Settlement Act of 1988 (Public Law 100-585; 
        102 Stat. 2974).

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

    Subsection (a) of section 6 of the Colorado Ute Indian Water Rights 
Settlement Act of 1988 (Public Law 100-585; 102 Stat. 2975) is amended 
to read as follows:

    ``(a) Reservoir; Municipal and Industrial Water.--
            ``(1) Facilities.--
                    ``(A) In general.--After the date of enactment of 
                this subsection, but prior to January 1, 2005, or the 
                date established in the Amended Final Decree described 
                in section 18(c), the Secretary, in order to settle the 
                outstanding claims of the Tribes on the Animas and La 
                Plata Rivers, acting through the Bureau of Reclamation, 
                is specifically authorized to--
                          ``(i) complete construction of, and operate 
                      and maintain, a reservoir, a pumping plant, a 
                      reservoir inlet conduit, and appurtenant 
                      facilities with sufficient capacity to divert and 
                      store water from the Animas River to provide for 
                      an average annual depletion of 57,100 acre-feet of 
                      water to be used for a municipal and industrial 
                      water supply, which facilities shall--
                                    ``(I) be designed and operated in 
                                accordance with the hydrologic regime 
                                necessary for the recovery of the 
                                endangered fish of the San Juan River as 
                                determined by the San Juan River 
                                Recovery Implementation Program;
                                    ``(II) be operated in accordance 
                                with the Animas-La Plata Project Compact 
                                as approved by Congress in Public Law 
                                90-537;
                                    ``(III) include an inactive pool of 
                                an appropriate size to be determined by 
                                the Secretary following the completion 
                                of required environmental compliance 
                                activities; and
                                    ``(IV) include those recreation 
                                facilities determined to be appropriate 
                                by agreement between the State of 
                                Colorado and the Secretary that shall 
                                address the payment of any of the costs 
                                of such facilities by the State of 
                                Colorado in addition to the costs 
                                described in paragraph (3); and

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

                          ``(ii) deliver, through the use of the project 
                      components referred to in clause (i), municipal 
                      and industrial water allocations--
                                    ``(I) with an average annual 
                                depletion not to exceed 16,525 acre-feet 
                                of water, to the Southern Ute Indian 
                                Tribe for its present and future needs;
                                    ``(II) with an average annual 
                                depletion not to exceed 16,525 acre-feet 
                                of water, to the Ute Mountain Ute Indian 
                                Tribe for its present and future needs;
                                    ``(III) with an average annual 
                                depletion not to exceed 2,340 acre-feet 
                                of water, to the Navajo Nation for its 
                                present and future needs;
                                    ``(IV) with an average annual 
                                depletion not to exceed 10,400 acre-feet 
                                of water, to the San Juan Water 
                                Commission for its present and future 
                                needs;
                                    ``(V) with an average annual 
                                depletion of an amount not to exceed 
                                2,600 acre-feet of water, to the Animas-
                                La Plata Conservancy District for its 
                                present and future needs;
                                    ``(VI) with an average annual 
                                depletion of an amount not to exceed 
                                5,230 acre-feet of water, to the State 
                                of Colorado for its present and future 
                                needs; and
                                    ``(VII) with an average annual 
                                depletion of an amount not to exceed 780 
                                acre-feet of water, to the La Plata 
                                Conservancy District of New Mexico for 
                                its present and future needs.
                    ``(B) Applicability of other federal law.--The 
                responsibilities of the Secretary described in 
                subparagraph (A) are subject to the requirements of 
                Federal laws related to the protection of the 
                environment and otherwise applicable to the construction 
                of the proposed facilities, including the National 
                Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
                seq.), the Clean Water Act (42 U.S.C. 7401 et seq.), and 
                the Endangered Species Act of 1973 (16 U.S.C. 1531 et 
                seq.). Nothing in this Act shall be construed to 
                predetermine or otherwise affect the outcome of any 
                analysis conducted by the Secretary or any other Federal 
                official under applicable laws.
                    ``(C) Limitation.--
                          ``(i) In general.--If constructed, the 
                      facilities described in subparagraph (A) shall 
                      constitute the Animas-La Plata Project. 
                      Construction of any other project features 
                      authorized by Public Law 90-537 shall not be 
                      commenced without further express authorization 
                      from Congress.
                          ``(ii) Contingency in application.--If the 
                      facilities described in subparagraph (A) are not 
                      constructed and operated, clause (i) shall not 
                      take effect.
            ``(2) Tribal construction costs.--Construction costs 
        allocable to the facilities that are required to deliver the 
        municipal and industrial water allocations described in 
        subclauses (I), (II) and (III) of paragraph (1)(A)(ii) shall be 
        nonreimbursable to the United States.
            ``(3) Nontribal water capital obligations.--

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

                    ``(A) In general.--Under the provisions of section 9 
                of the Act of August 4, 1939 (43 U.S.C. 485h), the 
                nontribal municipal and industrial water capital 
                repayment obligations for the facilities described in 
                paragraph (1)(A)(i) may be satisfied upon the payment in 
                full of the nontribal water capital obligations prior to 
                the initiation of construction. The amount of the 
                obligations described in the preceding sentence shall be 
                determined by agreement between the Secretary of the 
                Interior and the entity responsible for such repayment 
                as to the appropriate reimbursable share of the 
                construction costs allocated to that entity's municipal 
                water storage. Such repayment shall be consistent with 
                Federal reclamation law, including the Colorado River 
                Storage Project Act of 1956 (43 U.S.C. 620 et seq.). 
                Such agreement shall take into account the fact that the 
                construction of certain project facilities, including 
                those facilities required to provide irrigation water 
                supplies from the Animas-La Plata Project, is not 
                authorized under paragraph (1)(A)(i) and no costs 
                associated with the design or development of such 
                facilities, including costs associated with 
                environmental compliance, shall be allocable to the 
                municipal and industrial users of the facilities 
                authorized under such paragraph.
                    ``(B) Nontribal repayment obligation subject to 
                final cost allocation.--The nontribal repayment 
                obligation set forth in subparagraph (A) shall be 
                subject to a final cost allocation by the Secretary upon 
                project completion. In the event that the final cost 
                allocation indicates that additional repayment is 
                warranted based on the applicable entity's share of 
                project water storage and determination of overall 
                reimbursable cost, that entity may elect to enter into a 
                new agreement to make the additional payment necessary 
                to secure the full water supply identified in paragraph 
                (1)(A)(ii). If the repayment entity elects not to enter 
                into a new agreement, the portion of project storage 
                relinquished by such election shall be available to the 
                Secretary for allocation to other project purposes. 
                Additional repayment shall only be warranted for 
                reasonable and unforeseen costs associated with project 
                construction as determined by the Secretary in 
                consultation with the relevant repayment entities.
                    ``(C) Report.--Not later than April 1, 2001, the 
                Secretary shall report to Congress on the status of the 
                cost-share agreements contemplated in subparagraph (A). 
                In the event that no agreement is reached with either 
                the Animas-La Plata Conservancy District or the State of 
                Colorado for the water allocations set forth in 
                subclauses (V) and (VI) of paragraph
(1)(A)(ii), those allocations shall be reallocated equally to the 
Colorado Ute Tribes.
            ``(4) Tribal water allocations.--
                    ``(A) In general.--With respect to municipal and 
                industrial water allocated to a Tribe from the Animas-La 
                Plata Project or the Dolores Project, until that water 
                is first used by a Tribe or used pursuant to a water use 
                contract with the Tribe, the Secretary shall pay the 
                annual operation, maintenance, and replacement costs 
                allocable

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

                to that municipal and industrial water allocation of the 
                Tribe.
                    ``(B) Treatment of costs.--A Tribe shall not be 
                required to reimburse the Secretary for the payment of 
                any cost referred to in subparagraph (A).
            ``(5) Repayment of pro rata share.--Upon a Tribe's first use 
        of an increment of a municipal and industrial water allocation 
        described in paragraph (4), or the Tribe's first use of such 
        water pursuant to the terms of a water use contract--
                    ``(A) repayment of that increment's pro rata share 
                of those allocable construction costs for the Dolores 
                Project shall be made by the Tribe; and
                    ``(B) the Tribe shall bear a pro rata share of the 
                allocable annual operation, maintenance, and replacement 
                costs of the increment as referred to in paragraph 
                (4).''.

SEC. 303. MISCELLANEOUS.

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

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

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

``SEC. 16. RESOURCE FUNDS.

    ``(a) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section, $8,000,000 for each of fiscal 
years 2002 through 2006. Not later than 60 days after amounts are 
appropriated and available to the Secretary for a fiscal year under this 
paragraph, the Secretary shall make a payment to each of the Tribal 
Resource Funds established under subsection (b). Each such payment shall 
be equal to 50 percent of the amount appropriated for the fiscal year 
involved.
    ``(b) Funds.--The Secretary shall establish a--

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

            ``(1) Southern Ute Tribal Resource Fund; and
            ``(2) Ute Mountain Ute Tribal Resource Fund.

    ``(c) Tribal Development.--
            ``(1) Investment.--The Secretary shall, in the absence of an 
        approved tribal investment plan provided for under paragraph 
        (2), invest the amount in each Tribal Resource Fund established 
        under subsection (b) in accordance with the Act entitled, `An 
        Act to authorize the deposit and investment of Indian funds' 
        approved June 24, 1938 (25 U.S.C. 162a). With the exception of 
        the funds referred to in paragraph (3)(B)(i), the Secretary 
        shall disburse, at the request of a Tribe, the principal and 
        income in its Resource Fund, or any part thereof, in accordance 
        with a resource acquisition and enhancement plan approved under 
        paragraph (3).
            ``(2) Investment plan.--
                    ``(A) In general.--In lieu of the investment 
                provided for in paragraph (1), a Tribe may submit a 
                tribal investment plan applicable to all or part of the 
                Tribe's Tribal Resource Fund, except with respect to the 
                funds referred to in paragraph (3)(B)(i).
                    ``(B) Approval.--Not later than 60 days after the 
                date on which an investment plan is submitted under 
                subparagraph (A), the Secretary shall approve such 
                investment plan if the Secretary finds that the plan is 
                reasonable and sound. If the Secretary does not approve 
                such investment plan, the Secretary shall set forth in 
                writing and with particularity the reasons for such 
                disapproval. If such investment plan is approved by the 
                Secretary, the Tribal Resource Fund involved shall be 
                disbursed to the Tribe to be invested by the Tribe in 
                accordance with the approved investment plan, subject to 
                subsection (d).
                    ``(C) Compliance.--The Secretary may take such steps 
                as the Secretary determines to be necessary to monitor 
                the compliance of a Tribe with an investment plan 
                approved under subparagraph (B). The United States shall 
                not be responsible for the review, approval, or audit of 
                any individual investment under the plan. The United 
                States shall not be directly or indirectly liable with 
                respect to any such investment, including any act or 
                omission of the Tribe in managing or investing such 
                funds.
                    ``(D) Economic development plan.--The principal and 
                income derived from tribal investments under an 
                investment plan approved under subparagraph (B) shall be 
                subject to the provisions of this section and shall be 
                expended only in accordance with an economic development 
                plan approved under paragraph (3)(B).
            ``(3) Economic development plan.--
                    ``(A) In general.--Each Tribe shall submit to the 
                Secretary a resource acquisition and enhancement plan 
                for all or any portion of its Tribal Resource Fund.
                    ``(B) Approval.--Not later than 60 days after the 
                date on which a plan is submitted under subparagraph 
                (A), the Secretary shall approve such plan if it is 
                consistent with the following requirements:
                          ``(i) With respect to at least three-fourths 
                      of the funds appropriated pursuant to this section 
                      and consistent with the long-standing practice of 
                      the Tribes

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

                      and other local entities and communities to work 
                      together to use their respective water rights and 
                      resources for mutual benefit, at least three-
                      fourths of the funds appropriated pursuant to this 
                      section shall be utilized to enhance, restore, and 
                      utilize the Tribes' natural resources in 
                      partnership with adjacent non-Indian communities 
                      or entities in the area.
                          ``(ii) The plan must be reasonably related to 
                      the protection, acquisition, enhancement, or 
                      development of natural resources for the benefit 
                      of the Tribe and its members.
                          ``(iii) Notwithstanding any other provision of 
                      law and in order to ensure that the Federal 
                      Government fulfills the objectives of the Record 
                      of Decision referred to in section 301(b)(8)(F) of 
                      the Colorado Ute Settlement Act Amendments of 2000 
                      by requiring that the funds referred to in clause 
                      (i) are expended directly by employees of the 
                      Federal Government, the Secretary acting through 
                      the Bureau of Reclamation shall expend not less 
                      than one-third of the funds referred to in clause 
                      (i) for municipal or rural water development and 
                      not less than two-thirds of the funds referred to 
                      such clause for resource acquisition and 
                      enhancement.
                    ``(C) Modification.--Subject to the provisions of 
                this Act and the approval of the Secretary, each Tribe 
                may modify a plan approved under subparagraph (B).
                    ``(D) Liability.--The United States shall not be 
                directly or indirectly liable for any claim or cause of 
                action arising from the approval of a plan under this 
                paragraph, or from the use and expenditure by the Tribe 
                of the principal or interest of the Funds.

    ``(d) Limitation on Per Capita Distributions.--No part of the 
principal contained in the Tribal Resource Fund, or of the income 
accruing to such funds, or the revenue from any water use contract, 
shall be distributed to any member of either Tribe on a per capita 
basis.
    ``(e) Limitation on Setting Aside Final Consent Decree.--Neither the 
Tribes nor the United States shall have the right to set aside the final 
consent decree solely because the requirements of subsection (c) are not 
complied with or implemented.
    ``(f ) Limitation on Disbursement of Tribal Resource Funds.--Any 
funds appropriated under this section shall be placed into the Southern 
Ute Tribal Resource Fund and the Ute Mountain Ute Tribal Resource Fund 
in the Treasury of the United States but shall not be available for 
disbursement under this section until the final settlement of the tribal 
claims as provided in section 18. The Secretary of the Interior may, in 
the Secretary's sole discretion, authorize the disbursement of funds 
prior to the final settlement in the event that the Secretary determines 
that substantial portions of the settlement have been completed. In the 
event that the funds are not disbursed under the terms of this section 
by December 31, 2012, such funds shall be deposited in the general fund 
of the Treasury.

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

``SEC. 17. COLORADO UTE SETTLEMENT FUND.

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

``SEC. 18. FINAL SETTLEMENT.

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

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

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

                                TITLE IV

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

    (a) In General.--The Museum--
            (1) is designated as the ``American Museum of Science and 
        Energy''; and

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

            (2) shall be the official museum of science and energy of 
        the United States.

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

SEC. 402. AUTHORITY.

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

SEC. 403. MUSEUM VOLUNTEERS.

    (a) Authority To Use Volunteers.--The Secretary may recruit, train, 
and accept the services of individuals or entities as volunteers for 
services or activities related to the Museum.
    (b) Status of Volunteers.--
            (1) In general.--Except as provided in paragraph (2), 
        service by a volunteer under subsection (a) shall not be 
        considered Federal employment.
            (2) Exceptions.--
                    (A) Federal tort claims act.--For purposes of 
                chapter 171 of title 28, United States Code, a volunteer 
                under subsection (a) shall be treated as an employee of 
                the Government (as defined in section 2671 of that 
                title).
                    (B) Compensation for work injuries.--For purposes of 
                subchapter I of chapter 81 of title 5, United States

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

                Code, a volunteer described in subsection (a) shall be 
                treated as an employee (as defined in section 8101 of 
                title 5, United States Code).

    (c) Compensation.--A volunteer under subsection (a) shall serve 
without pay, but may receive nominal awards and reimbursement for 
incidental expenses, including expenses for a uniform or transportation 
in furtherance of Museum activities.

SEC. 404. DEFINITIONS.

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

                 TITLE V--LOWER MISSISSIPPI RIVER REGION

SEC. 501. SHORT TITLE.

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

SEC. 502. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds that--
            (1) the lower Mississippi River region (referred to in this 
        title as the ``region''), though rich in natural and human 
        resources, lags behind the rest of the United States in economic 
        growth and prosperity;
            (2) the region suffers from a greater proportion of 
        measurable poverty and unemployment than any other region of the 
        United States;
            (3) the greatest hope for economic growth and revitalization 
        in the region lies in the development of transportation 
        infrastructure, creation of jobs, expansion of businesses, and 
        development of entrepreneurial local economies;
            (4) the economic progress of the region requires an adequate 
        transportation and physical infrastructure, a skilled and 
        trained workforce, and greater opportunities for enterprise 
        development and entrepreneurship;
            (5) a concerted and coordinated effort among Federal, State, 
        and local agencies, the private sector, and nonprofit groups is 
        needed if the region is to achieve its full potential for 
        economic development;
            (6) economic development planning on a regional or 
        multicounty basis offers the best prospect for achieving the 
        maximum benefit from public and private investments; and
            (7) improving the economy of the region requires a special 
        emphasis on areas of the region that are most economically 
        distressed.

    (b) Purposes.--The purposes of this title are--
            (1) to promote and encourage the economic development of the 
        region--
                    (A) to ensure that the communities and people in the 
                region have the opportunity for economic development; 
                and

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

                    (B) to ensure that the economy of the region reaches 
                economic parity with that of the rest of the United 
                States;
            (2) to establish a formal framework for joint Federal-State 
        collaboration in meeting and focusing national attention on the 
        economic development needs of the region;
            (3) to assist the region in obtaining the transportation and 
        basic infrastructure, skills training, and opportunities for 
        economic development that are essential for strong local 
        economies;
            (4) to foster coordination among all levels of government, 
        the private sector, and nonprofit groups in crafting common 
        regional strategies that will lead to broader economic growth;
            (5) to strengthen efforts that emphasize regional approaches 
        to economic development and planning;
            (6) to encourage the participation of interested citizens, 
        public officials, agencies, and others in developing and 
        implementing local and regional plans for broad-based economic 
        and community development; and
            (7) to focus special attention on areas of the region that 
        suffer from the greatest economic distress.

SEC. 503. DELTA REGIONAL AUTHORITY.

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

                 ``Subtitle F--Delta Regional Authority

``SEC. 382A. DEFINITIONS.

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

``SEC. 382B. DELTA REGIONAL AUTHORITY.

    ``(a) Establishment.--
            ``(1) In general.--There is established the Delta Regional 
        Authority.
            ``(2) Composition.--The Authority shall be composed of--
                    ``(A) a Federal member, to be appointed by the 
                President, with the advice and consent of the Senate; 
                and
                    ``(B) the Governor (or a designee of the Governor) 
                of each State in the region that elects to participate 
                in the Authority.
            ``(3) Cochairpersons.--The Authority shall be headed by--
                    ``(A) the Federal member, who shall serve--
                          ``(i) as the Federal cochairperson; and
                          ``(ii) as a liaison between the Federal 
                      Government and the Authority; and

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

                    ``(B) a State cochairperson, who--
                          ``(i) shall be a Governor of a participating 
                      State in the region; and
                          ``(ii) shall be elected by the State members 
                      for a term of not less than 1 year.

    ``(b) Alternate Members.--
            ``(1) State alternates.--The State member of a participating 
        State may have a single alternate, who shall be--
                    ``(A) a resident of that State; and
                    ``(B) appointed by the Governor of the State.
            ``(2) Alternate federal cochairperson.--The President shall 
        appoint an alternate Federal cochairperson.
            ``(3) Quorum.--A State alternate shall not be counted toward 
        the establishment of a quorum of the Authority in any instance 
        in which a quorum of the State members is required to be 
        present.
            ``(4) Delegation of power.--No power or responsibility of 
        the Authority specified in paragraphs (2) and (3) of subsection 
        (c), and no voting right of any Authority member, shall be 
        delegated to any person--
                    ``(A) who is not an Authority member; or
                    ``(B) who is not entitled to vote in Authority 
                meetings.

    ``(c) Voting.--
            ``(1) In general.--A decision by the Authority shall require 
        a majority vote of the Authority (not including any member 
        representing a State that is delinquent under subsection 
        (g)(2)(C)) to be effective.
            ``(2) Quorum.--A quorum of State members shall be required 
        to be present for the Authority to make any policy decision, 
        including--
                    ``(A) a modification or revision of an Authority 
                policy decision;
                    ``(B) approval of a State or regional development 
                plan; and
                    ``(C) any allocation of funds among the States.
            ``(3) Project and grant proposals.--The approval of project 
        and grant proposals shall be--
                    ``(A) a responsibility of the Authority; and
                    ``(B) conducted in accordance with section 382I.
            ``(4) Voting by alternate members.--An alternate member 
        shall vote in the case of the absence, death, disability, 
        removal, or resignation of the Federal or State representative 
        for which the alternate member is an alternate.

    ``(d) Duties.--The Authority shall--
            ``(1) develop, on a continuing basis, comprehensive and 
        coordinated plans and programs to establish priorities and 
        approve grants for the economic development of the region, 
        giving due consideration to other Federal, State, and local 
        planning and development activities in the region;
            ``(2) not later than 220 days after the date of enactment of 
        this subtitle, establish priorities in a development plan for 
        the region (including 5-year regional outcome targets);
            ``(3) assess the needs and assets of the region based on 
        available research, demonstrations, investigations, assessments, 
        and evaluations of the region prepared by Federal, State, and 
        local agencies, universities, local development districts, and 
        other nonprofit groups;

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

            ``(4) formulate and recommend to the Governors and 
        legislatures of States that participate in the Authority forms 
        of interstate cooperation;
            ``(5) work with State and local agencies in developing 
        appropriate model legislation;
            ``(6)(A) enhance the capacity of, and provide support for, 
        local development districts in the region; or
            ``(B) if no local development district exists in an area in 
        a participating State in the region, foster the creation of a 
        local development district;
            ``(7) encourage private investment in industrial, 
        commercial, and other economic development projects in the 
        region; and
            ``(8) cooperate with and assist State governments with 
        economic development programs of participating States.

    ``(e) Administration.--In carrying out subsection (d), the Authority 
may--
            ``(1) hold such hearings, sit and act at such times and 
        places, take such testimony, receive such evidence, and print or 
        otherwise reproduce and distribute a description of the 
        proceedings and reports on actions by the Authority as the 
        Authority considers appropriate;
            ``(2) authorize, through the Federal or State cochairperson 
        or any other member of the Authority designated by the 
        Authority, the administration of oaths if the Authority 
        determines that testimony should be taken or evidence received 
        under oath;
            ``(3) request from any Federal, State, or local department 
        or agency such information as may be available to or procurable 
        by the department or agency that may be of use to the Authority 
        in carrying out duties of the Authority;
            ``(4) adopt, amend, and repeal bylaws and rules governing 
        the conduct of Authority business and the performance of 
        Authority duties;
            ``(5) request the head of any Federal department or agency 
        to detail to the Authority such personnel as the Authority 
        requires to carry out duties of the Authority, each such detail 
        to be without loss of seniority, pay, or other employee status;
            ``(6) request the head of any State department or agency or 
        local government to detail to the Authority such personnel as 
        the Authority requires to carry out duties of the Authority, 
        each such detail to be without loss of seniority, pay, or other 
        employee status;
            ``(7) provide for coverage of Authority employees in a 
        suitable retirement and employee benefit system by--
                    ``(A) making arrangements or entering into contracts 
                with any participating State government; or
                    ``(B) otherwise providing retirement and other 
                employee benefit coverage;
            ``(8) accept, use, and dispose of gifts or donations of 
        services or real, personal, tangible, or intangible property;
            ``(9) enter into and perform such contracts, leases, 
        cooperative agreements, or other transactions as are necessary 
        to carry out Authority duties, including any contracts, leases, 
        or cooperative agreements with--
                    ``(A) any department, agency, or instrumentality of 
                the United States;

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

                    ``(B) any State (including a political subdivision, 
                agency, or instrumentality of the State); or
                    ``(C) any person, firm, association, or corporation; 
                and
            ``(10) establish and maintain a central office and field 
        offices at such locations as the Authority may select.

    ``(f ) Federal Agency Cooperation.--A Federal agency shall--
            ``(1) cooperate with the Authority; and
            ``(2) provide, on request of the Federal cochairperson, 
        appropriate assistance in carrying out this subtitle, in 
        accordance with applicable Federal laws (including regulations).

    ``(g) Administrative Expenses.--
            ``(1) In general.--Administrative expenses of the Authority 
        (except for the expenses of the Federal cochairperson, including 
        expenses of the alternate and staff of the Federal 
        cochairperson, which shall be paid solely by the Federal 
        Government) shall be paid--
                    ``(A) by the Federal Government, in an amount equal 
                to 50 percent of the administrative expenses; and
                    ``(B) by the States in the region participating in 
                the Authority, in an amount equal to 50 percent of the 
                administrative expenses.
            ``(2) State share.--
                    ``(A) In general.--The share of administrative 
                expenses of the Authority to be paid by each State shall 
                be determined by the Authority.
                    ``(B) No federal participation.--The Federal 
                cochairperson shall not participate or vote in any 
                decision under subparagraph (A).
                    ``(C) Delinquent states.--If a State is delinquent 
                in payment of the State's share of administrative 
                expenses of the Authority under this subsection--
                          ``(i) no assistance under this subtitle shall 
                      be furnished to the State (including assistance to 
                      a political subdivision or a resident of the 
                      State); and
                          ``(ii) no member of the Authority from the 
                      State shall participate or vote in any action by 
                      the Authority.

    ``(h) Compensation.--
            ``(1) Federal cochairperson.--The Federal cochairperson 
        shall be compensated by the Federal Government at level III of 
        the Executive Schedule in subchapter II of chapter 53 of title 
        5, United States Code.
            ``(2) Alternate federal cochairperson.--The alternate 
        Federal cochairperson--
                    ``(A) shall be compensated by the Federal Government 
                at level V of the Executive Schedule described in 
                paragraph (1); and
                    ``(B) when not actively serving as an alternate for 
                the Federal cochairperson, shall perform such functions 
                and duties as are delegated by the Federal 
                cochairperson.
            ``(3) State members and alternates.--
                    ``(A) In general.--A State shall compensate each 
                member and alternate representing the State on the 
                Authority at the rate established by law of the State.
                    ``(B) No additional compensation.--No State member 
                or alternate member shall receive any salary, or any 
                contribution to or supplementation of salary from any 
                source

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

                other than the State for services provided by the member 
                or alternate to the Authority.
            ``(4) Detailed employees.--
                    ``(A) In general.--No person detailed to serve the 
                Authority under subsection (e)(6) shall receive any 
                salary or any contribution to or supplementation of 
                salary for services provided to the Authority from--
                          ``(i) any source other than the State, local, 
                      or intergovernmental department or agency from 
                      which the person was detailed; or
                          ``(ii) the Authority.
                    ``(B) Violation.--Any person that violates this 
                paragraph shall be fined not more than $5,000, 
                imprisoned not more than 1 year, or both.
                    ``(C) Applicable law.--The Federal cochairperson, 
                the alternate Federal cochairperson, and any Federal 
                officer or employee detailed to duty on the Authority 
                under subsection (e)(5) shall not be subject to 
                subparagraph (A), but shall remain subject to sections 
                202 through 209 of title 18, United States Code.
            ``(5) Additional personnel.--
                    ``(A) Compensation.--
                          ``(i) In general.--The Authority may appoint 
                      and fix the compensation of an executive director 
                      and such other personnel as are necessary to 
                      enable the Authority to carry out the duties of 
                      the Authority.
                          ``(ii) Exception.--Compensation under clause 
                      (i) shall not exceed the maximum rate for the 
                      Senior Executive Service under section 5382 of 
                      title 5, United States Code, including any 
                      applicable locality-based comparability payment 
                      that may be authorized under section 5304(h)(2)(C) 
                      of that title.
                    ``(B) Executive director.--The executive director 
                shall be responsible for--
                          ``(i) the carrying out of the administrative 
                      duties of the Authority;
                          ``(ii) direction of the Authority staff; and
                          ``(iii) such other duties as the Authority may 
                      assign.
                    ``(C) No federal employee status.--No member, 
                alternate, officer, or employee of the Authority (except 
                the Federal cochairperson of the Authority, the 
                alternate and staff for the Federal cochairperson, and 
                any Federal employee detailed to the Authority under
subsection (e)(5)) shall be considered to be a Federal employee for any 
purpose.

    ``(i) Conflicts of Interest.--
            ``(1) In general.--Except as provided under paragraph (2), 
        no State member, alternate, officer, or employee of the 
        Authority shall participate personally and substantially as a 
        member, alternate, officer, or employee of the Authority, 
        through decision, approval, disapproval, recommendation, the 
        rendering of advice, investigation, or otherwise, in any 
        proceeding, application, request for a ruling or other 
        determination, contract, claim, controversy, or other matter in 
        which, to knowledge of the member, alternate, officer, or 
        employee--
                    ``(A) the member, alternate, officer, or employee;

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

                    ``(B) the spouse, minor child, partner, or 
                organization (other than a State or political 
                subdivision of the State) of the member, alternate, 
                officer, or employee, in which the member, alternate, 
                officer, or employee is serving as officer, director, 
                trustee, partner, or employee; or
                    ``(C) any person or organization with whom the 
                member, alternate, officer, or employee is negotiating 
                or has any arrangement concerning prospective 
                employment;

    has a financial interest.
            ``(2) Disclosure.--Paragraph (1) shall not apply if the 
        State member, alternate, officer, or employee--
                    ``(A) immediately advises the Authority of the 
                nature and circumstances of the proceeding, application, 
                request for a ruling or other determination, contract, 
                claim, controversy, or other particular matter 
                presenting a potential conflict of interest;
                    ``(B) makes full disclosure of the financial 
                interest; and
                    ``(C) before the proceeding concerning the matter 
                presenting the conflict of interest, receives a written 
                determination by the Authority that the interest is not 
                so substantial as to be likely to affect the integrity 
                of the services that the Authority may expect from the 
                State member, alternate, officer, or employee.
            ``(3) Violation.--Any person that violates this subsection 
        shall be fined not more than $10,000, imprisoned not more than 2 
        years, or both.

    ``( j) Validity of Contracts, Loans, and Grants.--The Authority may 
declare void any contract, loan, or grant of or by the Authority in 
relation to which the Authority determines that there has been a 
violation of any provision under subsection (h)(4), subsection (i), or 
sections 202 through 209 of title 18, United States Code.

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

    ``(a) In General.--The Authority may approve grants to States and 
public and nonprofit entities for projects, approved in accordance with 
section 382I--
            ``(1) to develop the transportation infrastructure of the 
        region for the purpose of facilitating economic development in 
        the region (except that grants for this purpose may only be made 
        to a State or local government);
            ``(2) to assist the region in obtaining the job training, 
        employment-related education, and business development (with an 
        emphasis on entrepreneurship) that are needed to build and 
        maintain strong local economies;
            ``(3) to provide assistance to severely distressed and 
        underdeveloped areas that lack financial resources for improving 
        basic public services;
            ``(4) to provide assistance to severely distressed and 
        underdeveloped areas that lack financial resources for equipping 
        industrial parks and related facilities; and
            ``(5) to otherwise achieve the purposes of this subtitle.

    ``(b) Funding.--
            ``(1) In general.--Funds for grants under subsection (a) may 
        be provided--

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

                    ``(A) entirely from appropriations to carry out this 
                section;
                    ``(B) in combination with funds available under 
                another Federal or Federal grant program; or
                    ``(C) from any other source.
            ``(2) Priority of funding.--To best build the foundations 
        for long-term economic development and to complement other 
        Federal and State resources in the region, Federal funds 
        available under this subtitle shall be focused on the activities 
        in the following order or priority:
                    ``(A) Basic public infrastructure in distressed 
                counties and isolated areas of distress.
                    ``(B) Transportation infrastructure for the purpose 
                of facilitating economic development in the region.
                    ``(C) Business development, with emphasis on 
                entrepreneurship.
                    ``(D) Job training or employment-related education, 
                with emphasis on use of existing public educational 
                institutions located in the region.
            ``(3) Federal share in grant programs.--Notwithstanding any 
        provision of law limiting the Federal share in any grant 
        program, funds appropriated to carry out this section may be 
        used to increase a Federal share in a grant program, as the 
        Authority determines appropriate.

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

    ``(a) Finding.--Congress finds that certain States and local 
communities of the region, including local development districts, may be 
unable to take maximum advantage of Federal grant programs for which the 
States and communities are eligible because--
            ``(1) they lack the economic resources to meet the required 
        matching share; or
            ``(2) there are insufficient funds available under the 
        applicable Federal grant law authorizing the program to meet 
        pressing needs of the region.

    ``(b) Federal Grant Program Funding.--In accordance with subsection 
(c), the Federal cochairperson may use amounts made available to carry 
out this subtitle, without regard to any limitations on areas eligible 
for assistance or authorizations for appropriation under any other Act, 
to fund all or any portion of the basic Federal contribution to a 
project or activity under a Federal grant program in the region in an 
amount that is above the fixed maximum portion of the cost of the 
project otherwise authorized by applicable law, but not to exceed 90 
percent of the costs of the project (except as provided in section 
382F(b)).
    ``(c) Certification.--
            ``(1) In general.--In the case of any program or project for 
        which all or any portion of the basic Federal contribution to 
        the project under a Federal grant program is proposed to be made 
        under this section, no Federal contribution shall be made until 
        the Federal official administering the Federal law authorizing 
        the contribution certifies that the program or project--
                    ``(A) meets the applicable requirements of the 
                applicable Federal grant law; and

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

                    ``(B) could be approved for Federal contribution 
                under the law if funds were available under the law for 
                the program or project.
            ``(2) Certification by authority.--
                    ``(A) In general.--The certifications and 
                determinations required to be made by the Authority for 
                approval of projects under this subtitle in accordance 
                with section 382I--
                          ``(i) shall be controlling; and
                          ``(ii) shall be accepted by the Federal 
                      agencies.
                    ``(B) Acceptance by federal cochairperson.--Any 
                finding, report, certification, or documentation 
                required to be submitted to the head of the department, 
                agency, or instrumentality of the Federal Government 
                responsible for the administration of any Federal grant 
                program shall be accepted by the Federal cochairperson 
                with respect to a supplemental grant for any project 
                under the program.

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

    ``(a) Definition of Local Development District.--In this section, 
the term `local development district' means an entity that--
            ``(1) is--
                    ``(A) a planning district in existence on the date 
                of enactment of this subtitle that is recognized by the 
                Economic Development Administration of the Department of 
                Commerce; or
                    ``(B) where an entity described in subparagraph (A) 
                does not exist--
                          ``(i) organized and operated in a manner that 
                      ensures broad-based community participation and an 
                      effective opportunity for other nonprofit groups 
                      to contribute to the development and 
                      implementation of programs in the region;
                          ``(ii) governed by a policy board with at 
                      least a simple majority of members consisting of 
                      elected officials or employees of a general 
                      purpose unit of local government who have been 
                      appointed to represent the government;
                          ``(iii) certified to the Authority as having a 
                      charter or authority that includes the
economic development of counties or parts of counties or other political 
subdivisions within the region--
                                    ``(I) by the Governor of each State 
                                in which the entity is located; or
                                    ``(II) by the State officer 
                                designated by the appropriate State law 
                                to make the certification; and
                    ``(iv)(I) a nonprofit incorporated body organized or 
                chartered under the law of the State in which the entity 
                is located;
                    ``(II) a nonprofit agency or instrumentality of a 
                State or local government;
                    ``(III) a public organization established before the 
                date of enactment of this subtitle under State law for 
                creation of multi-jurisdictional, area-wide planning 
                organizations; or

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

                    ``(IV) a nonprofit association or combination of 
                bodies, agencies, and instrumentalities described in 
                subclauses (I) through (III); and
            ``(2) has not, as certified by the Federal cochairperson--
                    ``(A) inappropriately used Federal grant funds from 
                any Federal source; or
                    ``(B) appointed an officer who, during the period in 
                which another entity inappropriately used Federal grant 
                funds from any Federal source, was an officer of the 
                other entity.

    ``(b) Grants to Local Development Districts.--
            ``(1) In general.--The Authority may make grants for 
        administrative expenses under this section.
            ``(2) Conditions for grants.--
                    ``(A) Maximum amount.--The amount of any grant 
                awarded under paragraph (1) shall not exceed 80 percent 
                of the administrative expenses of the local development 
                district receiving the grant.
                    ``(B) Maximum period.--No grant described in 
                paragraph (1) shall be awarded to a State agency 
                certified as a local development district for a period 
                greater than 3 years.
                    ``(C) Local share.--The contributions of a local 
                development district for administrative expenses may be 
                in cash or in kind, fairly evaluated, including space, 
                equipment, and services.

    ``(c) Duties of Local Development Districts.--A local development 
district shall--
            ``(1) operate as a lead organization serving multicounty 
        areas in the region at the local level; and
            ``(2) serve as a liaison between State and local 
        governments, nonprofit organizations (including community-based 
        groups and educational institutions), the business community, 
        and citizens that--
                    ``(A) are involved in multijurisdictional planning;
                    ``(B) provide technical assistance to local 
                jurisdictions and potential grantees; and
                    ``(C) provide leadership and civic development 
                assistance.

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

    ``(a) Designations.--Not later than 90 days after the date of 
enactment of this subtitle, and annually thereafter, the Authority, in 
accordance with such criteria as the Authority may establish, shall 
designate--
            ``(1) as distressed counties, counties in the region that 
        are the most severely and persistently distressed and 
        underdeveloped and have high rates of poverty or unemployment;
            ``(2) as nondistressed counties, counties in the region that 
        are not designated as distressed counties under paragraph (1); 
        and
            ``(3) as isolated areas of distress, areas located in 
        nondistressed counties (as designated under paragraph (2)) that 
        have high rates of poverty or unemployment.

    ``(b) Distressed Counties.--

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

            ``(1) In general.--The Authority shall allocate at least 75 
        percent of the appropriations made available under section 382M 
        for programs and projects designed to serve the needs of 
        distressed counties and isolated areas of distress in the 
        region.
            ``(2) Funding limitations.--The funding limitations under 
        section 382D(b) shall not apply to a project providing 
        transportation or basic public services to residents of one or 
        more distressed counties or isolated areas of distress in the 
        region.

    ``(c) Nondistressed Counties.--
            ``(1) In general.--Except as provided in this subsection, no 
        funds shall be provided under this subtitle for a project 
        located in a county designated as a nondistressed county under 
        subsection (a)(2).
            ``(2) Exceptions.--
                    ``(A) In general.--The funding prohibition under 
                paragraph (1) shall not apply to grants to fund the 
                administrative expenses of local development districts 
                under section 382E(b).
                    ``(B) Multicounty projects.--The Authority may waive 
                the application of the funding prohibition under 
                paragraph (1) to--
                          ``(i) a multicounty project that includes 
                      participation by a nondistressed county; or
                          ``(ii) any other type of project;
                if the Authority determines that the project could bring 
                significant benefits to areas of the region outside a 
                nondistressed county.
                    ``(C) Isolated areas of distress.--For a designation 
                of an isolated area of distress for assistance to be 
                effective, the designation shall be supported--
                          ``(i) by the most recent Federal data 
                      available; or
                          ``(ii) if no recent Federal data are 
                      available, by the most recent data available 
                      through the government of the State in which the 
                      isolated area of distress is located.

    ``(d) Transportation and Basic Public Infrastructure.--The Authority 
shall allocate at least 50 percent of any funds made available under 
section 382M for transportation and basic public infrastructure projects 
authorized under paragraphs (1) and (3) of section 382C(a).

``SEC. 382G. DEVELOPMENT PLANNING PROCESS.

    ``(a) State Development Plan.--In accordance with policies 
established by the Authority, each State member shall submit a 
development plan for the area of the region represented by the State 
member.
    ``(b) Content of Plan.--A State development plan submitted under 
subsection (a) shall reflect the goals, objectives, and priorities 
identified in the regional development plan developed under section 
382B(d)(2).
    ``(c) Consultation With Interested Local Parties.--In carrying out 
the development planning process (including the selection of programs 
and projects for assistance), a State may--
            ``(1) consult with--
                    ``(A) local development districts; and

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

                    ``(B) local units of government; and
            ``(2) take into consideration the goals, objectives, 
        priorities, and recommendations of the entities described in 
        paragraph (1).

    ``(d) Public Participation.--
            ``(1) In general.--The Authority and applicable State and 
        local development districts shall encourage and assist, to the 
        maximum extent practicable, public participation in the 
        development, revision, and implementation of all plans and 
        programs under this subtitle.
            ``(2) Regulations.--The Authority shall develop guidelines 
        for providing public participation described in paragraph (1), 
        including public hearings.

``SEC. 382H. PROGRAM DEVELOPMENT CRITERIA.

    ``(a) In General.--In considering programs and projects to be 
provided assistance under this subtitle, and in establishing a priority 
ranking of the requests for assistance provided by the Authority, the 
Authority shall follow procedures that ensure, to the maximum extent 
practicable, consideration of--
            ``(1) the relationship of the project or class of projects 
        to overall regional development;
            ``(2) the per capita income and poverty and unemployment 
        rates in an area;
            ``(3) the financial resources available to the applicants 
        for assistance seeking to carry out the project, with emphasis 
        on ensuring that projects are adequately financed to maximize 
        the probability of successful economic development;
            ``(4) the importance of the project or class of projects in 
        relation to other projects or classes of projects that may be in 
        competition for the same funds;
            ``(5) the prospects that the project for which assistance is 
        sought will improve, on a continuing rather than a temporary 
        basis, the opportunities for employment, the average level of 
        income, or the economic development of the area served by the 
        project; and
            ``(6) the extent to which the project design provides for 
        detailed outcome measurements by which grant expenditures and 
        the results of the expenditures may be evaluated.

    ``(b) No Relocation Assistance.--No financial assistance authorized 
by this subtitle shall be used to assist a person or entity in 
relocating from one area to another, except that financial assistance 
may be used as otherwise authorized by this title to attract businesses 
from outside the region to the region.

    ``(c) Reduction of Funds.--Funds may be provided for a program or 
project in a State under this subtitle only if the Authority determines 
that the level of Federal or State financial assistance provided under a 
law other than this subtitle, for the same type of program or project in 
the same area of the State within the region, will not be reduced as a 
result of funds made available by this subtitle.

``SEC. 382I. APPROVAL OF DEVELOPMENT PLANS AND PROJECTS.

    ``(a) In General.--A State or regional development plan or any 
multistate subregional plan that is proposed for development under this 
subtitle shall be reviewed by the Authority.
    ``(b) Evaluation by State Member.--An application for a grant or any 
other assistance for a project under this subtitle shall be

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

made through and evaluated for approval by the State member of the 
Authority representing the applicant.
    ``(c) Certification.--An application for a grant or other assistance 
for a project shall be approved only on certification by the State 
member that the application for the project--
            ``(1) describes ways in which the project complies with any 
        applicable State development plan;
            ``(2) meets applicable criteria under section 382H;
            ``(3) provides adequate assurance that the proposed project 
        will be properly administered, operated, and maintained; and
            ``(4) otherwise meets the requirements of this subtitle.

    ``(d) Votes for Decisions.--On certification by a State member of 
the Authority of an application for a grant or other assistance for a 
specific project under this section, an affirmative vote of the 
Authority under section 382B(c) shall be required for approval of the 
application.

``SEC. 382J. CONSENT OF STATES.

    ``Nothing in this subtitle requires any State to engage in or accept 
any program under this subtitle without the consent of the State.

``SEC. 382K. RECORDS.

    ``(a) Records of the Authority.--
            ``(1) In general.--The Authority shall maintain accurate and 
        complete records of all transactions and activities of the 
        Authority.
            ``(2) Availability.--All records of the Authority shall be 
        available for audit and examination by the Comptroller General 
        of the United States and the Inspector General of the Department 
        of Agriculture (including authorized representatives of the 
        Comptroller General and the Inspector General of the Department 
        of Agriculture).

    ``(b) Records of Recipients of Federal Assistance.--
            ``(1) In general.--A recipient of Federal funds under this 
        subtitle shall, as required by the Authority, maintain accurate 
        and complete records of transactions and activities financed 
        with Federal funds and report on the transactions and activities 
        to the Authority.
            ``(2) Availability.--All records required under paragraph 
        (1) shall be available for audit by the Comptroller General of 
        the United States, the Inspector General of the Department of 
        Agriculture, and the Authority (including authorized 
        representatives of the Comptroller General, the Inspector 
        General of the Department of Agriculture, and the Authority).

    ``(c) Annual Audit.--The Inspector General of the Department of 
Agriculture shall audit the activities, transactions, and records of the 
Authority on an annual basis.

``SEC. 382L. ANNUAL REPORT.

    ``Not later than 180 days after the end of each fiscal year, the 
Authority shall submit to the President and to Congress a report 
describing the activities carried out under this subtitle.

``SEC. 382M. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There is authorized to be appropriated to the 
Authority to carry out this subtitle $30,000,000 for each of fiscal 
years 2001 through 2002, to remain available until expended.

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

    ``(b) Administrative Expenses.--Not more than 5 percent of the 
amount appropriated under subsection (a) for a fiscal year shall be used 
for administrative expenses of the Authority.

``SEC. 382N. TERMINATION OF AUTHORITY.

    ``This subtitle and the authority provided under this subtitle 
expire on October 1, 2002.''.

SEC. 504. AREA COVERED BY LOWER MISSISSIPPI DELTA DEVELOPMENT 
            COMMISSION.

    (a) In General.--Section 4(2)(D) of the Delta Development Act (42 
U.S.C. 3121 note; 102 Stat. 2246) is amended by inserting 
``Natchitoches,'' after ``Winn,''.
    (b) Conforming Amendment.--The matter under the heading ``salaries 
and expenses'' under the heading ``Farmers Home Administration'' in 
title II of Public Law 100-460 (102 Stat. 2246) is amended in the fourth 
proviso by striking ``carry out'' and all that follows through ``bills 
are hereby'' and inserting ``carry out S. 2836, the Delta Development 
Act, as introduced in the Senate on September 27, 1988, and that bill 
is''.

              TITLE VI--DAKOTA WATER RESOURCES ACT OF 2000

SEC. 601. SHORT TITLE.

    This title may be cited as the ``Dakota Water Resources Act of 
2000''.

SEC. 602. PURPOSES AND AUTHORIZATION.

    Section 1 of Public Law 89-108 (79 Stat. 433; 100 Stat. 418) is 
amended--
            (1) in subsection (a)--
                    (A) in paragraph (2), by striking ``of'' and 
                inserting ``within'';
                    (B) in paragraph (5), by striking ``more timely'' 
                and inserting ``appropriate''; and
                    (C) in paragraph (7), by striking ``federally-
                assisted water resource development project providing 
                irrigation for 130,940 acres of land'' and inserting 
                ``multipurpose federally assisted water resource project 
                providing irrigation, municipal, rural, and industrial 
                water systems, fish, wildlife, and other natural 
                resource conservation and development, recreation, flood 
                control, ground water recharge, and augmented stream 
                flows'';
            (2) in subsection (b)--
                    (A) by inserting ``, jointly with the State of North 
                Dakota,'' after ``construct'';
                    (B) by striking ``the irrigation of 130,940 acres'' 
                and inserting ``irrigation'';
                    (C) by striking ``fish and wildlife conservation'' 
                and inserting ``fish, wildlife, and other natural 
                resource conservation'';
                    (D) by inserting ``augmented stream flows, ground 
                water recharge,'' after ``flood control,''; and
                    (E) by inserting ``(as modified by the Dakota Water 
                Resources Act of 2000)'' before the period at the end;
            (3) in subsection (e), by striking ``terminated'' and all 
        that follows and inserting ``terminated.''; and

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

            (4) by striking subsections (f ) and (g) and inserting the 
        following:

    ``(f ) Costs.--
            ``(1) Estimate.--The Secretary shall estimate--
                    ``(A) the actual construction costs of the 
                facilities (including mitigation facilities) in 
                existence as of the date of enactment of the Dakota 
                Water Resources Act of 2000; and
                    ``(B) the annual operation, maintenance, and 
                replacement costs associated with the used and unused 
                capacity of the features in existence as of that date.
            ``(2) Repayment contract.--An appropriate repayment contract 
        shall be negotiated that provides for the making of a payment 
        for each payment period in an amount that is commensurate with 
        the percentage of the total capacity of the project that is in 
        actual use during the payment period.
            ``(3) Operation and maintenance costs.--Except as otherwise 
        provided in this Act or Reclamation Law--
                    ``(A) The Secretary shall be responsible for the 
                costs of operation and maintenance of the proportionate 
                share of unit facilities in existence on the date of 
                enactment of the Dakota Water Resources Act of 2000 
                attributable to the capacity of the facilities 
                (including mitigation facilities) that remain unused;
                    ``(B) The State of North Dakota shall be responsible 
                for costs of operation and maintenance of the 
                proportionate share of existing unit facilities that are 
                used and shall be responsible for the full costs of 
                operation and maintenance of any facility constructed 
                after the date of enactment of the Dakota Water 
                Resources Act of 2000; and
                    ``(C) The State of North Dakota shall be responsible 
                for the costs of providing energy to authorized unit 
                facilities.

    ``(g) Agreement Between the Secretary and the State.--The Secretary 
shall enter into one or more agreements with the State of North Dakota 
to carry out this Act, including operation and maintenance of the 
completed unit facilities and the design and construction of authorized 
new unit facilities by the State.
    ``(h) Boundary Waters Treaty of 1909.--
            ``(1) Delivery of water into the hudson bay basin.--Prior to 
        construction of any water systems authorized under this Act to 
        deliver Missouri River water into the Hudson Bay basin, the 
        Secretary, in consultation with the Secretary of State and the 
        Administrator of the Environmental Protection Agency, must 
        determine that adequate treatment can be provided to meet the 
        requirements of the Treaty between the United States and Great 
        Britain relating to Boundary Waters Between the United States 
        and Canada, signed at Washington, January 11, 1909 (26 Stat. 
        2448; TS 548) (commonly known as the Boundary Waters Treaty of 
        1909).
            ``(2) Costs.--All costs of construction, operation, 
        maintenance, and replacement of water treatment and related 
        facilities authorized by this Act and attributable to meeting 
        the requirements of the treaty referred to in paragraph (1) 
        shall be nonreimbursable.''.

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

SEC. 603. FISH AND WILDLIFE.

    Section 2 of Public Law 89-108 (79 Stat. 433; 100 Stat. 419) is 
amended--
            (1) by striking subsections (b), (c), and (d) and inserting 
        the following:

    ``(b) Fish and Wildlife Costs.--All fish and wildlife enhancement 
costs incurred in connection with waterfowl refuges, waterfowl 
production areas, and wildlife conservation areas proposed for Federal 
or State administration shall be nonreimbursable.
    ``(c) Recreation Areas.--
            ``(1) Costs.--If non-Federal public bodies continue to agree 
        to administer land and water areas approved for recreation and 
        agree to bear not less than 50 percent of the separable costs of 
        the unit allocated to recreation and attributable to those areas 
        and all the costs of operation, maintenance, and replacement 
        incurred in connection therewith, the remainder of the separable 
        capital costs so allocated and attributed shall be 
        nonreimbursable.
            ``(2) Approval.--The recreation areas shall be approved by 
        the Secretary in consultation and coordination with the State of 
        North Dakota.

    ``(d) Non-Federal Share.--The non-Federal share of the separable 
capital costs of the unit allocated to recreation shall be borne by non-
Federal interests, using the following methods, as the Secretary may 
determine to be appropriate:
            ``(1) Services in kind.
            ``(2) Payment, or provision of lands, interests therein, or 
        facilities for the unit.
            ``(3) Repayment, with interest, within 50 years of first use 
        of unit recreation facilities.'';
            (2) in subsection (e)--
                    (A) by redesignating paragraphs (1) and (2) as 
                paragraphs (2) and (3), respectively;
                    (B) by inserting ``(1)'' after ``(e)'';
                    (C) in paragraph (2) (as redesignated by 
                subparagraph (A))--
                          (i) in the first sentence--
                                    (I) by striking ``within ten years 
                                after initial unit operation to 
                                administer for recreation and fish and 
                                wildlife enhancement'' and inserting 
                                ``to administer for recreation''; and
                                    (II) by striking ``which are not 
                                included within Federal waterfowl 
                                refuges and waterfowl production 
                                areas''; and
                          (ii) in the second sentence, by striking ``or 
                      fish and wildlife enhancement''; and
                    (D) in the first sentence of paragraph (3) (as 
                redesignated by subparagraph (A))--
                          (i) by striking ``, within ten years after 
                      initial operation of the unit,''; and
                          (ii) by striking ``paragraph (1) of this 
                      subsection'' and inserting ``paragraph (2)'';
            (3) in subsection (f ), by striking ``and fish and wildlife 
        enhancement''; and
            (4) in subsection ( j)--
                    (A) in paragraph (1), by striking ``prior to the 
                completion of construction of Lonetree Dam and 
                Reservoir''; and

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

                    (B) by adding at the end the following:
            ``(4) Taayer reservoir.--Taayer Reservoir is deauthorized as 
        a project feature. The Secretary, acting through the 
        Commissioner of Reclamation, shall acquire (including 
        acquisition through donation or exchange) up to 5,000 acres in 
        the Kraft and Pickell Slough areas and to manage the area as a 
        component of the National Wildlife Refuge System giving 
        consideration to the unique wildlife values of the area. In 
        acquiring the lands which comprise the Kraft and Pickell Slough 
        complex, the Secretary shall acquire wetlands in the immediate 
        vicinity which may be hydrologically related and nearby uplands 
        as may be necessary to provide for proper management of the 
        complex. The Secretary shall provide for appropriate visitor 
        access and control at the refuge.
            ``(5) Deauthorization of lonetree dam and reservoir.--The 
        Lonetree Dam and Reservoir is deauthorized, and the Secretary 
        shall designate the lands acquired for the former reservoir site 
        as a wildlife conservation area. The Secretary shall enter into 
        an agreement with the State of North Dakota providing for the 
        operation and maintenance of the wildlife conservation area as 
        an enhancement feature, the costs of which shall be paid by the 
        Secretary.''.

SEC. 604. INTEREST CALCULATION.

    Section 4 of Public Law 89-108 (100 Stat. 435) is amended by adding 
at the end the following: ``Interest during construction shall be 
calculated only until such date as the Secretary declares any particular 
feature to be substantially complete, regardless of whether the feature 
is placed into service.''.

SEC. 605. IRRIGATION FACILITIES.

    Section 5 of Public Law 89-108 (100 Stat. 419) is amended--
            (1) by striking ``Sec. 5. (a)(1)'' and all that follows 
        through subsection (c) and inserting the following:

``SEC. 5. IRRIGATION FACILITIES.

    ``(a) In General.--
            ``(1) Authorized development.--In addition to the 5,000-acre 
        Oakes Test Area in existence on the date of enactment of the 
        Dakota Water Resources Act of 2000, the Secretary may develop 
        irrigation in--
                    ``(A) the Turtle Lake service area (13,700 acres);
                    ``(B) the McClusky Canal service area (10,000 
                acres); and
                    ``(C) if the investment costs are fully reimbursed 
                without aid to irrigation from the Pick-Sloan Missouri 
                Basin Program, the New Rockford Canal service area 
                (1,200 acres).
            ``(2) Development not authorized.--None of the irrigation 
        authorized by this section may be developed in the Hudson Bay/
        Devils Lake Basin.
            ``(3) No excess development.--The Secretary shall not 
        develop irrigation in the service areas described in paragraph 
        (1) in excess of the acreage specified in that paragraph, except 
        that the Secretary shall develop up to 28,000 acres of 
        irrigation in other areas of North Dakota (such as the Elk/
        Charbonneau, Mon-Dak, Nesson Valley, Horsehead Flats, and 
        Oliver-Mercer

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

        areas) that are not located in the Hudson Bay/Devils Lake 
        drainage basin or James River drainage basin.
            ``(4) Pumping power.--Irrigation development authorized by 
        this section shall be considered authorized units of the Pick-
        Sloan Missouri Basin Program and eligible to receive project 
        pumping power.
            ``(5) Principal supply works.--The Secretary shall maintain 
        the Snake Creek Pumping Plant, New Rockford Canal, and McClusky 
        Canal features of the principal supply works. Subject to the 
        provisions of section (8) of this Act, the Secretary shall 
        select a preferred alternative to implement the Dakota Water 
        Resources Act of 2000. In making this selection, one of the 
        alternatives the Secretary shall consider is whether to connect 
        the principal supply works in existence on the date of 
        enactment.'';
            (2) by redesignating subsections (d), (e), and (f ) as 
        subsections (b), (c), and (d), respectively;
            (3) in the first sentence of subsection (b) (as redesignated 
        by paragraph (2)), by striking ``(a)(1)'' and inserting ``(a)'';
            (4) in the first sentence of subsection (c) (as redesignated 
        by paragraph (2)), by striking ``Lucky Mound (7,700 acres), 
        Upper Six Mile Creek (7,500 acres)'' and inserting ``Lucky Mound 
        (7,700 acres) and Upper Six Mile Creek (7,500 acres), or such 
        other lands at Fort Berthold of equal acreage as may be selected 
        by the tribe and approved by the Secretary,''; and
            (5) by adding at the end the following:

    ``(e) Irrigation Report to Congress.--
            ``(1) In general.--The Secretary shall investigate and 
        prepare a detailed report on the undesignated 28,000 acres in 
        subsection (a)(3) as to costs and benefits for any irrigation 
        units to be developed under Reclamation law.
            ``(2) Finding.--The report shall include a finding on the 
        economic, financial and engineering feasibility of the proposed 
        irrigation unit, but shall be limited to the undesignated 28,000 
        acres.
            ``(3) Authorization.--If the Secretary finds that the 
        proposed construction is feasible, such irrigation units are 
        authorized without further Act of Congress.
            ``(4) Documentation.--No expenditure for the construction of 
        facilities authorized under this section shall be made until 
        after the Secretary, in cooperation with the State of North 
        Dakota, has prepared the appropriate documentation in accordance 
        with section 1 and pursuant to the National Environmental Policy 
        Act of 1969 (42 U.S.C. 4321 et seq.) analyzing the direct and 
        indirect impacts of implementing the report.''.

SEC. 606. POWER.

    Section 6 of Public Law 89-108 (79 Stat. 435; 100 Stat. 421) is 
amended--
            (1) in subsection (b)--
                    (A) by striking ``Notwithstanding the provisions 
                of'' and inserting ``Pursuant to the provisions of''; 
                and
                    (B) by striking ``revenues,'' and all that follows 
                and inserting ``revenues.''; and
            (2) by striking subsection (c) and inserting the following:

    ``(c) No Increase in Rates or Effect on Repayment Methodology.--In 
accordance with the last sentence of section 302(a)(3)

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

of the Department of Energy Organization Act (42 U.S.C. 7152(a)(3)), 
section 1(e) shall not result in any reallocation of project costs and 
shall not result in increased rates to Pick-Sloan Missouri Basin Program 
customers. Nothing in the Dakota Water Resources Act of 2000 alters or 
affects in any way the repayment methodology in effect as of the date of 
enactment of that Act for other features of the Pick-Sloan Missouri 
Basin Program.''.

SEC. 607. MUNICIPAL, RURAL, AND INDUSTRIAL WATER SERVICE.

    Section 7 of Public Law 89-108 (100 Stat. 422) is amended--
            (1) in subsection (a)(3)--
                    (A) in the second sentence--
                          (i) by striking ``The non-Federal share'' and 
                      inserting ``Unless otherwise provided in this Act, 
                      the non-Federal share'';
                          (ii) by striking ``each water system'' and 
                      inserting ``water systems'';
                          (iii) by inserting after the second sentence 
                      the following: ``The State may use the Federal and 
                      non-Federal funds to provide grants or loans for 
                      municipal, rural, and industrial water systems. 
                      The State shall use the proceeds of repaid loans 
                      for municipal, rural, and industrial water 
                      systems. Proceeds from loan repayments and any 
                      interest thereon shall be treated as Federal 
                      funds.''; and
                          (iv) by striking the last sentence and 
                      inserting the following: ``The Southwest Pipeline 
                      Project, the Northwest Area Water Supply Project, 
                      the Red River Valley Water Supply Project, and 
                      other municipal, industrial, and rural water 
                      systems in the State of North Dakota shall be 
                      eligible for funding under the terms of this 
                      section. Funding provided under this section for 
                      the Red River Valley Water Supply Project shall be 
                      in addition to funding for that project under 
                      section 10(a)(1)(B). The amount of non-Federal 
                      contributions made after May 12, 1986, that 
                      exceeds the 25 percent requirement shall be 
                      credited to the State for future use in municipal, 
                      rural, and industrial projects under this 
                      section.''; and
            (2) by striking subsections (b), (c), and (d) and inserting 
        the following:

    ``(b) Water Conservation Program.--The State of North Dakota may use 
funds provided under subsections (a) and (b)(1)(A) of section 10 to 
develop and implement a water conservation program. The Secretary and 
the State shall jointly establish water conservation goals to meet the 
purposes of the State program and to improve the availability of water 
supplies to meet the purposes of this Act. If the State achieves the 
established water conservation goals, the non-Federal cost share for 
future projects under subsection (a)(3) shall be reduced to 24.5 
percent.
    ``(c) Nonreimbursability of Costs.--With respect to the Southwest 
Pipeline Project, the Northwest Area Water Supply Project, the Red River 
Valley Water Supply Project, and other municipal, industrial, and rural 
water systems in North Dakota, the costs of the features constructed on 
the Missouri River by the Secretary of the Army before the date of 
enactment of the Dakota Water Resources Act of 2000 shall be 
nonreimbursable.

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

    ``(d) Indian Municipal Rural and Industrial Water Supply.--The 
Secretary shall construct, operate, and maintain such municipal, rural, 
and industrial water systems as the Secretary determines to be necessary 
to meet the economic, public health, and environmental needs of the Fort 
Berthold, Standing Rock, Turtle Mountain (including the Trenton Indian 
Service Area), and Fort Totten Indian Reservations and adjacent 
areas.''.

SEC. 608. SPECIFIC FEATURES.

    (a) Sykeston Canal.--Sykeston Canal is hereby deauthorized.
    (b) In General.--Public Law 89-108 (100 Stat. 423) is amended by 
striking section 8 and inserting the following:

``SEC. 8. SPECIFIC FEATURES.

    ``(a) Red River Valley Water Supply Project.--
            ``(1) In general.--Subject to the requirements of this 
        section, the Secretary shall construct a feature or features to 
        provide water to the Sheyenne River water supply and release 
        facility or such other feature or features as are selected under 
        subsection (d).
            ``(2) Design and construction.--The feature or features 
        shall be designed and constructed to meet only the following 
        water supply requirements as identified in the report prepared 
        pursuant to subsection (b) of this section: Municipal, rural, 
        and industrial water supply needs; ground water recharge; and 
        streamflow augmentation.
            ``(3) Commencement of construction.--(A) If the Secretary 
        selects a project feature under this section that would provide 
        water from the Missouri River or its tributaries to the Sheyenne 
        River water supply and release facility or from the Missouri 
        River or its tributaries to such other conveyance facility as 
        the Secretary selects under this section, no later than 90 days 
        after the completion of the final environmental impact 
        statement, the Secretary shall transmit to Congress a 
        comprehensive report which provides--
                    ``(i) a detailed description of the proposed project 
                feature;
                    ``(ii) a summary of major issues addressed in the 
                environmental impact statement;
                    ``(iii) likely effects, if any, on other States 
                bordering the Missouri River and on the State of 
                Minnesota; and
                    ``(iv) a description of how the project feature 
                complies with the requirements of section 1(h)(1) of 
                this Act (relating to the Boundary Waters Treaty of 
                1909).
            ``(B) No project feature or features that would provide 
        water from the Missouri River or its tributaries to the Sheyenne 
        River water supply and release facility or from the Missouri 
        River or its tributaries to such other conveyance facility as 
        the Secretary selects under this section shall be constructed 
        unless such feature is specifically authorized by an Act of 
        Congress approved subsequent to the Secretary's transmittal of 
        the report required in subparagraph (A). If, after complying 
        with subsections (b) through (d) of this section, the Secretary 
        selects a feature or features using only in-basin sources of 
        water to meet the water needs of the Red River Valley identified 
        in subsection (b), such features are authorized without further

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

        Act of Congress. The Act of Congress referred to in this 
        subparagraph must be an authorization bill, and shall not be a 
        bill making appropriations.
            ``(C) The Secretary may not commence construction on the 
        feature until a master repayment contract or water service 
        agreement consistent with this Act between the Secretary and the 
        appropriate non-Federal entity has been executed.

    ``(b) Report on Red River Valley Water Needs and Options.--
            ``(1) In general.--The Secretary of the Interior shall 
        conduct a comprehensive study of the water quality and quantity 
        needs of the Red River Valley in North Dakota and possible 
        options for meeting those needs.
            ``(2) Needs.--The needs addressed in the report shall 
        include such needs as--
                    ``(A) municipal, rural, and industrial water 
                supplies;
                    ``(B) water quality;
                    ``(C) aquatic environment;
                    ``(D) recreation; and
                    ``(E) water conservation measures.
            ``(3) Process.--In conducting the study, the Secretary 
        through an open and public process shall solicit input from 
        gubernatorial designees from States that may be affected by 
        possible options to meet such needs as well as designees from 
        other Federal agencies with relevant expertise. For any option 
        that includes an out-of-basin solution, the Secretary shall 
        consider the effect of the option on other States that may be 
        affected by such option, as well as other appropriate 
        considerations. Upon completion, a draft of the study shall be 
        provided by the Secretary to such States and Federal agencies. 
        Such States and agencies shall be given not less than 120 days 
        to review and comment on the study method, findings and 
        conclusions leading to any alternative that may have an impact 
        on such States or on resources subject to such Federal agencies' 
        jurisdiction. The Secretary shall receive and take into 
        consideration any such comments and produce a final report and 
        transmit the final report to Congress.
            ``(4) Limitation.--No design or construction of any feature 
        or features that facilitate an out-of-basin transfer from the 
        Missouri River drainage basin shall be authorized under the 
        provisions of this subsection.

    ``(c) Environmental Impact Statement.--
            ``(1) In general.--Nothing in this section shall be 
        construed to supersede any requirements under the National 
        Environmental Policy Act or the Administrative Procedures Act.
            ``(2) Draft.--
                    ``(A) Deadline.--Pursuant to an agreement between 
                the Secretary and State of North
Dakota as authorized under section 1(g), not later than 1 year after the 
date of enactment of the Dakota Water Resources Act of 2000, the 
Secretary and the State of North Dakota shall jointly prepare and 
complete a draft environmental impact statement concerning all feasible 
options to meet the comprehensive water quality and quantity needs of 
the Red River Valley and the options for meeting those needs, including

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

the delivery of Missouri River water to the Red River Valley.
                    ``(B) Report on status.--If the Secretary and State 
                of North Dakota cannot prepare and complete the draft 
                environmental impact statement within 1 year after the 
                date of enactment of the Dakota Water Resources Act of 
                2000, the Secretary, in consultation and coordination 
                with the State of North Dakota, shall report to Congress 
                on the status of this activity, including an estimate of 
                the date of completion.
            ``(3) Final.--
                    ``(A) Deadline.--Not later than 1 year after filing 
                the draft environmental impact statement, a final 
                environmental impact statement shall be prepared and 
                published.
                    ``(B) Report on status.--If the Secretary and State 
                of North Dakota cannot prepare and complete a final 
                environmental impact statement within 1 year of the 
                completion of the draft environmental impact statement, 
                the Secretary, in consultation and coordination with the 
                State of North Dakota, shall report to Congress on the 
                status of this activity, including an estimate of the 
                date of completion.

    ``(d) Process for Selection.--
            ``(1) In general.--After reviewing the final report required 
        by subsection (b)(1) and complying with subsection (c), the 
        Secretary, in consultation and coordination with the State of 
        North Dakota in coordination with affected local communities, 
        shall select one or more project features described in 
        subsection (a) that will meet the comprehensive water quality 
        and quantity needs of the Red River Valley. The Secretary's 
        selection of an alternative shall be subject to judicial review.
            ``(2) Agreements.--If the Secretary selects an option under 
        paragraph (1) that uses only in-basin sources of water, not 
        later than 180 days after the record of decision has been 
        executed, the Secretary shall enter into a cooperative agreement 
        with the State of North Dakota to construct the feature or 
        features selected. If the Secretary selects an option under 
        paragraph (1) that would require a further act of Congress under 
        the provisions of subsection (a), not later than 180 days after 
        the date of enactment of legislation required under subsection 
        (a) the Secretary shall enter into a cooperative agreement with 
        the State of North Dakota to construct the feature or features 
        authorized by that legislation.

    ``(e) Sheyenne River Water Supply and Release or Alternate 
Features.--The Secretary shall construct, operate, and maintain a 
Sheyenne River water supply and release feature (including a water 
treatment plant) capable of delivering 100 cubic feet per second of 
water or any other amount determined in the reports under this section, 
for the cities of Fargo and Grand Forks and surrounding communities, or 
such other feature or features as may be selected under subsection (d).
    ``(f ) Devils Lake.--No funds authorized under this Act may be used 
to carry out the portion of the feasibility study of the Devils Lake 
basin, North Dakota, authorized under the Energy and Water Development 
Appropriations Act of 1993 (Public Law 102-377), that addresses the 
needs of the area for stabilized lake levels through inlet controls, or 
to otherwise study any facility

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

or carry out any activity that would permit the transfer of water from 
the Missouri River drainage basin into Devils Lake, North Dakota.''.

SEC. 609. OAKES TEST AREA TITLE TRANSFER.

    Public Law 89-108 (100 Stat. 423) is amended by striking section 9 
and inserting the following:

``SEC. 9. OAKES TEST AREA TITLE TRANSFER.

    ``(a) In General.--Not later than 2 years after execution of a 
record of decision under section 8(d) on whether to use the New Rockford 
Canal as a means of delivering water to the Red River Basin as described 
in section 8, the Secretary shall enter into an agreement with the State 
of North Dakota, or its designee, to convey title and all or any rights, 
interests, and obligations of the United States in and to the Oakes Test 
Area as constructed and operated under Public Law 99-294 (100 Stat. 418) 
under such terms and conditions as the Secretary believes would fully 
protect the public interest.
    ``(b) Terms and Conditions.--The agreement shall define the terms 
and conditions of the transfer of the facilities, lands, mineral estate, 
easements, rights-of-way and water rights including the avoidance of 
costs that the
Federal Government would otherwise incur in the case of a failure to 
agree under subsection (d).

    ``(c) Compliance.--The action of the Secretary under this section 
shall comply with all applicable requirements of Federal, State, and 
local law.
    ``(d) Failure To Agree.--If an agreement is not reached within the 
time limit specified in subsection (a), the Secretary shall dispose of 
the Oakes Test Area facilities under the Federal Property and 
Administrative Services Act of 1949 (40 U.S.C. 471 et seq.).''.

SEC. 610. AUTHORIZATION OF APPROPRIATIONS.

    Section 10 of Public Law 89-108 (100 Stat. 424; 106 Stat. 4669, 
4739) is amended--
            (1) in subsection (a)--
                    (A) by striking ``(a)(1) There are authorized'' and 
                inserting the following:

    ``(a) Water Distribution Features.--
            ``(1) In general.--
                    ``(A) Main stem supply works.--There is 
                authorized'';
                    (B) in paragraph (1)--
                          (i) in the first sentence, by striking 
                      ``$270,395,000 for carrying out the provisions of 
                      section 5(a) through 5(c) and section 8(a)(1) of 
                      this Act'' and inserting ``$164,000,000 to carry 
                      out section 5(a)'';
                          (ii) by inserting after subparagraph (A) (as 
                      designated by clause (i)) the following:
                    ``(B) Red river valley water supply project.--There 
                is authorized to be appropriated to carry out section 
                8(a)(1) $200,000,000.''; and
                          (iii) by striking ``Such sums'' and inserting 
                      the following:
                    ``(C) Availability.--Such sums''; and
                    (C) in paragraph (2)--
                          (i) by striking ``(2) There is'' and inserting 
                      the following:
            ``(2) Indian irrigation.--

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

                    ``(A) In general.--There is'';
                          (ii) by striking ``for carrying out section 
                      5(e) of this Act'' and inserting ``to carry out 
                      section 5(c)''; and
                          (iii) by striking ``Such sums'' and inserting 
                      the following:
                    ``(B) Availability.--Such sums'';
            (2) in subsection (b)--
                    (A) by striking ``(b)(1) There is'' and inserting 
                the following:

    ``(b) Municipal, Rural, and Industrial Water Supply.--
            ``(1) Statewide.--
                    ``(A) Initial amount.--There is'';
                    (B) in paragraph (1)--
                          (i) by inserting before ``Such sums'' the 
                      following:
                    ``(B) Additional amount.--In addition to the amount 
                under subparagraph (A), there is authorized to be 
                appropriated to carry out section 7(a) $200,000,000.''; 
                and
                          (ii) by striking ``Such sums'' and inserting 
                      the following:
                    ``(C) Availability.--Such sums''; and
                    (C) in paragraph (2)--
                          (i) by striking ``(2) There are authorized to 
                      be appropriated $61,000,000'' and all that follows 
                      through ``Act.'' and inserting the following:
            ``(2) Indian municipal, rural, and industrial and other 
        delivery features.--
                    ``(A) Initial amount.--There is authorized to be 
                appropriated--
                          ``(i) to carry out section 8(a)(1), 
                      $40,500,000; and
                          ``(ii) to carry out section 7(d), 
                      $20,500,000.'';
                          (ii) by inserting before ``Such sums'' the 
                      following:
                    ``(B) Additional amount.--
                          ``(i) In general.--In addition to the amount 
                      under subparagraph (A), there is authorized to be 
                      appropriated to carry out section 7(d) 
                      $200,000,000.
                          ``(ii) Allocation.--The amount under clause 
                      (i) shall be allocated as follows:
                                    ``(I) $30,000,000 to the Fort Totten 
                                Indian Reservation.
                                    ``(II) $70,000,000 to the Fort 
                                Berthold Indian Reservation.
                                    ``(IV) $80,000,000 to the Standing 
                                Rock Indian Reservation.
                                    ``(V) $20,000,000 to the Turtle 
                                Mountain Indian Reservation.''; and
                          (iii) by striking ``Such sums'' and inserting 
                      the following:
                    ``(C) Availability.--Such sums'';
            (3) in subsection (c)--
                    (A) by striking ``(c) There is'' and inserting the 
                following:

    ``(c) Resources Trust and Other Provisions.--
            ``(1) Initial amount.--There is''; and
                    (B) by striking the second and third sentences and 
                inserting the following:
            ``(2) Additional amount.--In addition to amount under 
        paragraph (1), there are authorized to be appropriated--

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

                    ``(A) $6,500,000 to carry out recreational projects; 
                and
                    ``(B) an additional $25,000,000 to carry out section 
                11;
        to remain available until expended.
            ``(3) Recreational projects.--Of the funds authorized under 
        paragraph (2) for recreational projects, up to $1,500,000 may be 
        used to fund a wetland interpretive center in the State of North 
        Dakota.
            ``(4) Operation and maintenance.--
                    ``(A) In general.--There are authorized to be 
                appropriated such sums as are necessary for operation 
                and maintenance of the unit (including the mitigation 
                and enhancement features).
                    ``(B) Authorization limits.--Expenditures for 
                operation and maintenance of features substantially 
                completed and features constructed before the date of 
                enactment of the Dakota Water Resources Act of 2000, 
                including funds expended for such purposes since the 
                date of enactment of Public Law 99-294, shall not be 
                counted against the authorization limits in this 
                section.
            ``(5) Mitigation and enhancement land.--On or about the date 
        on which the features authorized by section 8(a) are 
        operational, a separate account in the Natural Resources Trust 
        authorized by section 11 shall be established for operation and 
        maintenance of the mitigation and enhancement land associated 
        with the unit.''; and
            (4) by striking subsection (e) and inserting the following:

    ``(e) Indexing.--The $200,000,000 amount under subsection (b)(1)(B), 
the $200,000,000 amount under subsection (a)(1)(B), and the funds 
authorized under subsection (b)(2) shall be indexed as necessary to 
allow for ordinary fluctuations of construction costs incurred after the 
date of enactment of the Dakota Water Resources Act of 2000 as indicated 
by engineering cost indices applicable for the type of construction 
involved. All other authorized cost ceilings shall remain unchanged.''.

SEC. 611. NATURAL RESOURCES TRUST.

    Section 11 of Public Law 89-108 (100 Stat. 424) is amended--
            (1) by striking subsection (a) and inserting the following:

    ``(a) Contribution.--
            ``(1) Initial authorization.--
                    ``(A) In general.--From the sums appropriated under 
                section 10 for the Garrison Diversion Unit, the 
                Secretary shall make an annual Federal contribution to a 
                Natural Resources Trust established by non-Federal 
                interests in accordance with subsection (b) and operated 
                in accordance with subsection (c).
                    ``(B) Amount.--The total amount of Federal 
                contributions under subparagraph (A) shall not exceed 
                $12,000,000.
            ``(2) Additional authorization.--
                    ``(A) In general.--In addition to the amount 
                authorized in paragraph (1), the Secretary shall make 
                annual Federal contributions to the Natural Resources 
                Trust until the amount authorized by section 10(c)(2)(B) 
                is reached, in the manner stated in subparagraph (B).
                    ``(B) Annual amount.--The amount of the contribution 
                under subparagraph (A) for each fiscal year shall be the

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

                amount that is equal to 5 percent of the total amount 
                that is appropriated for the fiscal year under 
                subsections (a)(1)(B) and (b)(1)(B) of section 10.''.
            (2) in subsection (b), by striking ``Wetlands Trust'' and 
        inserting ``Natural Resources Trust''; and
            (3) in subsection (c)--
                    (A) by striking ``Wetland Trust'' and inserting 
                ``Natural Resources Trust'';
                    (B) by striking ``are met'' and inserting ``is 
                met'';
                    (C) in paragraph (1), by inserting ``, grassland 
                conservation and riparian areas'' after ``habitat''; and
                    (D) in paragraph (2), by adding at the end the 
                following:
                    ``(C) The power to fund incentives for conservation 
                practices by landowners.''.

                                TITLE VII

SEC. 701. FINDINGS.

    Congress finds that--
            (1) there is a continuing need for reconciliation between 
        Indians and non-Indians;
            (2) the need may be met partially through the promotion of 
        the understanding of the history and culture of Sioux Indian 
        tribes;
            (3) the establishment of a Sioux Nation Tribal Supreme Court 
        will promote economic development on reservations of the Sioux 
        Nation and provide investors that contribute to that development 
        a greater degree of certainty and confidence by--
                    (A) reconciling conflicting tribal laws; and
                    (B) strengthening tribal court systems;
            (4) the reservations of the Sioux Nation--
                    (A) contain the poorest counties in the United 
                States; and
                    (B) lack adequate tools to promote economic 
                development and the creation of jobs;
            (5) the establishment of a Native American Economic 
        Development Council will assist in promoting economic growth and 
        reducing poverty on reservations of the Sioux Nation by--
                    (A) coordinating economic development efforts;
                    (B) centralizing expertise concerning Federal 
                assistance; and
                    (C) facilitating the raising of funds from private 
                donations to meet matching requirements under certain 
                Federal assistance programs;
            (6) there is a need to enhance and strengthen the capacity 
        of Indian tribal governments and tribal justice systems to 
        address conflicts which impair relationships within Indian 
        communities and between Indian and non-Indian communities and 
        individuals; and
            (7) the establishment of the National Native American 
        Mediation Training Center, with the technical assistance of 
        tribal and Federal agencies, including the Community Relations 
        Service of the Department of Justice, would enhance and 
        strengthen the mediation skills that are useful in reducing 
        tensions and resolving conflicts in Indian communities and 
        between Indian and non-Indian communities and individuals.

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

SEC. 702. DEFINITIONS.

    In this title:
            (1) Indian tribe.--The term ``Indian tribe'' has the meaning 
        given that term in section 4(e) of the Indian Self-Determination 
        and Education Assistance Act (25 U.S.C. 450b(e)).
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (3) Sioux nation.--The term ``Sioux Nation'' means the 
        Indian tribes comprising the Sioux Nation.

SEC. 703. RECONCILIATION CENTER.

    (a) Establishment.--The Secretary of Housing and Urban Development, 
in cooperation with the Secretary, shall establish, in accordance with 
this section, a reconciliation center, to be known as ``Reconciliation 
Place''.
    (b) Location.--Notwithstanding any other provision of law, the 
Secretary shall take into trust for the benefit of the Sioux Nation the 
parcel of land in Stanley County, South Dakota, that is described as 
``The Reconciliation Place Addition'' that is owned on the date of 
enactment of this Act by the Wakpa Sica Historical Society, Inc., for 
the purpose of establishing and operating The Reconciliation Place.
    (c) Purposes.--The purposes of Reconciliation Place shall be as 
follows:
            (1) To enhance the knowledge and understanding of the 
        history of Native Americans by--
                    (A) displaying and interpreting the history, art, 
                and culture of Indian tribes for Indians and non-
                Indians; and
                    (B) providing an accessible repository for--
                          (i) the history of Indian tribes; and
                          (ii) the family history of members of Indian 
                      tribes.
            (2) To provide for the interpretation of the encounters 
        between Lewis and Clark and the Sioux Nation.
            (3) To house the Sioux Nation Tribal Supreme Court.
            (4) To house the Native American Economic Development 
        Council.
            (5) To house the National Native American Mediation Training 
        Center to train tribal personnel in conflict resolution and 
        alternative dispute resolution.

    (d) Grant.--
            (1) In general.--The Secretary of Housing and Urban 
        Development shall offer to award a grant
to the Wakpa Sica Historical Society of Fort Pierre, South Dakota, for 
the construction of Reconciliation Place.
            (2) Grant agreement.--
                    (A) In general.--As a condition to receiving the 
                grant under this subsection, the appropriate official of 
                the Wakpa Sica Historical Society shall enter into a 
                grant agreement with the Secretary of Housing and Urban 
                Development.
                    (B) Consultation.--Before entering into a grant 
                agreement under this paragraph, the Secretary of Housing 
                and Urban Development shall consult with the Secretary 
                concerning the contents of the agreement.
                    (C) Duties of the wakpa sica historical society.--
                The grant agreement under this paragraph shall specify 
                the duties of the Wakpa Sica Historical Society under 
                this

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

                section and arrangements for the maintenance of 
                Reconciliation Place.
            (3) Authorization of appropriations.--There are authorized 
        to be appropriated to the Department of Housing and Urban 
        Development $18,258,441, to be used for the grant under this 
        section.

SEC. 704. SIOUX NATION SUPREME COURT AND NATIONAL NATIVE AMERICAN 
            MEDIATION TRAINING CENTER.

    (a) In General.--To ensure the development and operation of the 
Sioux Nation Tribal Supreme Court and the National Native American 
Mediation Training Center, the Attorney General of the United States 
shall use available funds to provide technical and financial assistance 
to the Sioux Nation.
    (b) Authorization of Appropriations.--To carry out this section, 
there are authorized to be appropriated to the Department of Justice 
such sums as are necessary.

          TITLE VIII--ERIE CANALWAY NATIONAL HERITAGE CORRIDOR

SEC. 801. SHORT TITLE; DEFINITIONS.

    (a) Short Title.--This title may be cited as the ``Erie Canalway 
National Heritage Corridor Act''.
    (b) Definitions.--For the purposes of this title, the following 
definitions shall apply:
            (1) Erie canalway.--The term ``Erie Canalway'' means the 524 
        miles of navigable canal that comprise the New York State Canal 
        System, including the Erie, Cayuga and Seneca, Oswego, and 
        Champlain Canals and the historic alignments of these canals, 
        including the cities of Albany and Buffalo.
            (2) Canalway plan.--The term ``Canalway Plan'' means the 
        comprehensive preservation and management plan for the Corridor 
        required under section 806.
            (3) Commission.--The term ``Commission'' means the Erie 
        Canalway National Heritage Corridor Commission established under 
        section 804.
            (4) Corridor.--The term ``Corridor'' means the Erie Canalway 
        National Heritage Corridor established under section 803.
            (5) Governor.--The term ``Governor'' means the Governor of 
        the State of New York.
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.

SEC. 802. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds that--
            (1) the year 2000 marks the 175th Anniversary of New York 
        State's creation and stewardship of the Erie Canalway for 
        commerce, transportation, and recreational purposes, 
        establishing the network which made New York the ``Empire 
        State'' and the Nation's premier commercial and financial 
        center;
            (2) the canals and adjacent areas that comprise the Erie 
        Canalway are a nationally significant resource of historic and 
        recreational value, which merit Federal recognition and 
        assistance;

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

            (3) the Erie Canalway was instrumental in the establishment 
        of strong political and cultural ties between New England, 
        upstate New York, and the old Northwest and facilitated the 
        movement of ideas and people ensuring that social reforms like 
        the abolition of slavery and the women's rights movement spread 
        across upstate New York to the rest of the country;
            (4) the construction of the Erie Canalway was considered a 
        supreme engineering feat, and most American canals were modeled 
        after New York State's canal;
            (5) at the time of construction, the Erie Canalway was the 
        largest public works project ever undertaken by a State, 
        resulting in the creation of critical transportation and 
        commercial routes to transport passengers and goods;
            (6) the Erie Canalway played a key role in turning New York 
        City into a major port and New York State into the preeminent 
        center for commerce, industry, and finance in North America and 
        provided a permanent commercial link between the Port of New 
        York and the cities of eastern Canada, a cornerstone of the 
        peaceful relationship between the two countries;
            (7) the Erie Canalway proved the depth and force of American 
        ingenuity, solidified a national identity, and found an enduring 
        place in American legend, song, and art;
            (8) there is national interest in the preservation and 
        interpretation of the Erie Canalway's important historical, 
        natural, cultural, and scenic resources; and
            (9) partnerships among Federal, State, and local governments 
        and their regional entities, nonprofit organizations, and the 
        private sector offer the most effective opportunities for the 
        preservation and interpretation of the Erie Canalway.

    (b) Purposes.--The purposes of this title are--
            (1) to designate the Erie Canalway National Heritage 
        Corridor;
            (2) to provide for and assist in the identification, 
        preservation, promotion, maintenance, and interpretation of the 
        historical, natural, cultural, scenic, and recreational 
        resources of the Erie Canalway in ways that reflect its national 
        significance for the benefit of current and future generations;
            (3) to promote and provide access to the Erie Canalway's 
        historical, natural, cultural, scenic, and recreational 
        resources;
            (4) to provide a framework to assist the State of New York, 
        its units of local government, and the communities within the 
        Erie Canalway in the development of integrated cultural, 
        historical, recreational, economic, and community development 
        programs in order to enhance and interpret the unique and 
        nationally significant resources of the Erie Canalway; and
            (5) to authorize Federal financial and technical assistance 
        to the Commission to serve these purposes for the benefit of the 
        people of the State of New York and the Nation.

SEC. 803. THE ERIE CANALWAY NATIONAL HERITAGE CORRIDOR.

    (a) Establishment.--To carry out the purposes of this title there is 
established the Erie Canalway National Heritage Corridor in the State of 
New York.
    (b) Boundaries.--The boundaries of the Corridor shall include those 
lands generally depicted on a map entitled ``Erie Canalway National 
Heritage Area'' numbered ERIE/80,000 and dated October

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

2000. This map shall be on file and available for public inspection in 
the appropriate office of the National Park Service, the office of the 
Commission, and the office of the New York State Canal Corporation in 
Albany, New York.
    (c) Ownership and Operation of the New York State Canal System.--The 
New York State Canal System shall continue to be owned, operated, and 
managed by the State of New York.

SEC. 804. THE ERIE CANALWAY NATIONAL HERITAGE CORRIDOR COMMISSION.

    (a) Establishment.--There is established the Erie Canalway National 
Heritage Corridor Commission. The purpose of the Commission shall be--
            (1) to work with Federal, State, and local authorities to 
        develop and implement the Canalway Plan; and
            (2) to foster the integration of canal-related historical, 
        cultural, recreational, scenic, economic, and community 
        development initiatives within the Corridor.

    (b) Membership.--The Commission shall be composed of 27 members as 
follows:
            (1) The Secretary of the Interior, ex officio or the 
        Secretary's designee.
            (2) Seven members, appointed by the Secretary after 
        consideration of recommendations submitted by the Governor and 
        other appropriate officials, with knowledge and experience of 
        the following agencies or those agencies' successors: The New 
        York State Secretary of State, the New York State Department of 
        Environment Conservation, the New York State Office of Parks, 
        Recreation and Historic Preservation, the New York State 
        Department of Agriculture and Markets, the New York State 
        Department of Transportation, and the New York State Canal 
        Corporation, and the Empire State Development Corporation.
            (3) The remaining 19 members who reside within the Corridor 
        and are geographically dispersed throughout the Corridor shall 
        be from local governments and the private sector with knowledge 
        of tourism, economic and community development, regional 
        planning, historic preservation, cultural or natural resource 
        management, conservation, recreation, and education or museum 
        services. These members will be appointed by the Secretary as 
        follows:
                    (A) Eleven members based on a recommendation from 
                each member of the United States House of 
                Representatives whose district shall encompass the 
                Corridor. Each shall be a resident of the district from 
                which they shall be recommended.
                    (B) Two members based on a recommendation from each 
                United States Senator from New York State.
                    (C) Six members who shall be residents of any county 
                constituting the Corridor. One such member shall have 
                knowledge and experience of the Canal Recreationway 
                Commission.

    (c) Appointments and Vacancies.--Members of the Commission other 
than ex officio members shall be appointed for terms of 3 years. Of the 
original appointments, six shall be for a term of 1 year, six shall be 
for a term of 2 years, and seven shall be for a term of 3 years. Any 
member of the Commission appointed

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

for a definite term may serve after expiration of the term until the 
successor of the member is appointed. Any member appointed to fill a 
vacancy shall serve for the remainder of the term for which the 
predecessor was appointed. Any vacancy on the Commission shall be filled 
in the same manner in which the original appointment was made.
    (d) Compensation.--Members of the Commission shall receive no 
compensation for their service on the Commission. Members of the 
Commission, other than employees of the State and Canal Corporation, 
while away from their homes or regular places of business to perform 
services for the Commission, shall be allowed travel expenses, including 
per diem in lieu of subsistence, in the same manner as persons employed 
intermittently in Government service are allowed under section 5703 of 
title 5, United States Code.
    (e) Election of Offices.--The Commission shall elect the chairperson 
and the vice chairperson on an annual basis. The vice chairperson shall 
serve as the chairperson in the absence of the chairperson.
    (f ) Quorum and Voting.--Fourteen members of the Commission shall 
constitute a quorum but a lesser number may hold hearings. Any member of 
the Commission may vote by means of a signed proxy exercised by another 
member of the Commission, however, any member voting by proxy shall not 
be considered present for purposes of establishing a quorum. For the 
transaction of any business or the exercise of any power of the 
Commission, the Commission shall have the power to act by a majority 
vote of the members present at any meeting at which a quorum is in 
attendance.
    (g) Meetings.--The Commission shall meet at least quarterly at the 
call of the chairperson or 14 of its members. Notice of Commission 
meetings and agendas for the meeting shall be published in local 
newspapers throughout the Corridor. Meetings of the Commission shall be 
subject to section 552b of title 5, United States Code (relating to open 
meetings).
    (h) Powers of the Commission.--To the extent that Federal funds are 
appropriated, the Commission is authorized--
            (1) to procure temporary and intermittent services and 
        administrative facilities at rates determined to be reasonable 
        by the Commission to carry out the responsibilities of the 
        Commission;
            (2) to request and accept the services of personnel detailed 
        from the State of New York or any political subdivision, and to 
        reimburse the State or political subdivision for such services;
            (3) to request and accept the services of any Federal agency 
        personnel, and to reimburse the Federal agency for such 
        services;
            (4) to appoint and fix the compensation of staff to carry 
        out its duties;
            (5) to enter into cooperative agreements with the State of 
        New York, with any political subdivision of the State, or any 
        person for the purposes of carrying out the duties of the 
        Commission;
            (6) to make grants to assist in the preparation and 
        implementation of the Canalway Plan;
            (7) to seek, accept, and dispose of gifts, bequests, grants, 
        or donations of money, personal property, or services, received

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

        from any source. For purposes of section 170(c) of the Internal 
        Revenue Code of 1986, any gift to the Commission shall be deemed 
        to be a gift to the United States;
            (8) to assist others in developing educational, 
        informational, and interpretive programs and facilities,
and other such activities that may promote the implementation of the 
Canalway Plan;
            (9) to hold hearings, sit and act at such times and places, 
        take such testimony, and receive such evidence, as the 
        Commission may consider appropriate; the Commission may not 
        issue subpoenas or exercise any subpoena authority;
            (10) to use the United States mails in the same manner as 
        other departments or agencies of the United States;
            (11) to request and receive from the Administrator of 
        General Services, on a reimbursable basis, such administrative 
        support services as the Commission may request; and
            (12) to establish such advisory groups as the Commission 
        deems necessary.

    (i) Acquisition of Property.--Except as provided for leasing 
administrative facilities under section 804(h)(1), the Commission may 
not acquire any real property or interest in real property.
    ( j) Termination.--The Commission shall terminate on the day 
occurring 10 years after the date of enactment of this title.

SEC. 805. DUTIES OF THE COMMISSION.

    (a) Preparation of Canalway Plan.--Not later than 3 years after the 
Commission receives Federal funding for this purpose, the Commission 
shall prepare and submit a comprehensive preservation and management 
Canalway Plan for the Corridor to the Secretary and the Governor for 
review and approval. In addition to the requirements outlined for the 
Canalway Plan in section 806, the Canalway Plan shall incorporate and 
integrate existing Federal, State, and local plans to the extent 
appropriate regarding historic preservation, conservation, education and 
interpretation, community development, and tourism-related economic 
development for the Corridor that are consistent with the purpose of 
this title. The Commission shall solicit public comment on the 
development of the Canalway Plan.
    (b) Implementation of Canalway Plan.--After the Commission receives 
Federal funding for this purpose, and after review and upon approval of 
the Canalway Plan by the Secretary and the Governor, the Commission 
shall--
            (1) undertake action to implement the Canalway Plan so as to 
        assist the people of the State of New York in enhancing and 
        interpreting the historical, cultural, educational, natural, 
        scenic, and recreational potential of the Corridor identified in 
        the Canalway Plan; and
            (2) support public and private efforts in conservation and 
        preservation of the Canalway's cultural and natural resources 
        and economic revitalization consistent with the goals of the 
        Canalway Plan.

    (c) Priority Actions.--Priority actions which may be carried out by 
the Commission under section 805(b), include--
            (1) assisting in the appropriate preservation treatment of 
        the remaining elements of the original Erie Canal;

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

            (2) assisting State, local governments, and nonprofit 
        organizations in designing, establishing, and maintaining 
        visitor centers, museums, and other interpretive exhibits in the 
        Corridor;
            (3) assisting in the public awareness and appreciation for 
        the historic, cultural, natural, scenic, and recreational 
        resources and sites in the Corridor;
            (4) assisting the State of New York, local governments, and 
        nonprofit organizations in the preservation and restoration of 
        any historic building, site, or district in the Corridor;
            (5) encouraging, by appropriate means, enhanced economic 
        development in the Corridor consistent with the goals of the 
        Canalway Plan and the purposes of this title; and
            (6) ensuring that clear, consistent signs identifying access 
        points and sites of interest are put in place in the Corridor.

    (d) Annual Reports and Audits.--For any year in which Federal funds 
have been received under this title, the Commission shall submit an 
annual report and shall make available an audit of all relevant records 
to the Governor and the Secretary identifying its expenses and any 
income, the entities to which any grants or technical assistance were 
made during the year for which the report was made, and contributions by 
other parties toward achieving Corridor purposes.

SEC. 806. CANALWAY PLAN.

    (a) Canalway Plan Requirements.--The Canalway Plan shall--
            (1) include a review of existing plans for the Corridor, 
        including the Canal Recreationway Plan and Canal Revitalization 
        Program, and incorporate them to the extent feasible to ensure 
        consistence with local, regional, and State planning efforts;
            (2) provide a thematic inventory, survey, and evaluation of 
        historic properties that should be conserved, restored, 
        developed, or maintained because of
their natural, cultural, or historic significance within the Corridor in 
accordance with the regulations for the National Register of Historic 
Places;
            (3) identify public and private-sector preservation goals 
        and strategies for the Corridor;
            (4) include a comprehensive interpretive plan that 
        identifies, develops, supports, and enhances interpretation and 
        education programs within the Corridor that may include--
                    (A) research related to the construction and history 
                of the canals and the cultural heritage of the canal 
                workers, their families, those that traveled along the 
                canals, the associated farming activities, the 
                landscape, and the communities;
                    (B) documentation of and methods to support the 
                perpetuation of music, art, poetry, literature and 
                folkways associated with the canals; and
                    (C) educational and interpretative programs related 
                to the Erie Canalway developed in cooperation with State 
                and local governments, educational institutions, and 
                nonprofit institutions;
            (5) include a strategy to further the recreational 
        development of the Corridor that will enable users to uniquely 
        experience the canal system;

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

            (6) propose programs to protect, interpret, and promote the 
        Corridor's historical, cultural, recreational, educational, 
        scenic, and natural resources;
            (7) include an inventory of canal-related natural, cultural 
        and historic sites and resources located in the Area;
            (8) recommend Federal, State, and local strategies and 
        policies to support economic development, especially tourism-
        related development and recreation, consistent with the purposes 
        of the Corridor;
            (9) develop criteria and priorities for financial 
        preservation assistance;
            (10) identify and foster strong cooperative relationships 
        between the National Park Service, the New York State Canal 
        Corporation, other Federal and State agencies, and 
        nongovernmental organizations;
            (11) recommend specific areas for development of 
        interpretive, educational, and technical assistance centers 
        associated with the Corridor; and
            (12) contain a program for implementation of the Canalway 
        Plan by all necessary parties.

    (b) Approval of the Canalway Plan.--The Secretary and the Governor 
shall approve or disapprove the Canalway Plan not later than 90 days 
after receiving the Canalway Plan.
    (c) Criteria.--The Secretary may not approve the plan unless the 
Secretary finds that the plan, if implemented, would adequately protect 
the significant historical, cultural, natural, and recreational 
resources of the Corridor and consistent with such protection provide 
adequate and appropriate outdoor recreational opportunities and economic 
activities within the Corridor. In determining whether or not to approve 
the Canalway Plan, the Secretary shall consider whether--
            (1) the Commission has afforded adequate opportunity, 
        including public hearings, for public and governmental 
        involvement in the preparation of the Canalway Plan; and
            (2) the Secretary has received adequate assurances from the 
        Governor and appropriate State officials that the recommended 
        implementation program identified in the plan will be initiated 
        within a reasonable time after the date of approval of the 
        Canalway Plan and such program will ensure effective 
        implementation of State and local aspects of the Canalway Plan.

    (d) Disapproval of Canalway Plan.--If the Secretary or the Governor 
do not approve the Canalway Plan, the Secretary or the Governor shall 
advise the Commission in writing within 90 days the reasons therefore 
and shall indicate any recommendations for revisions. Following 
completion of any necessary revisions of the Canalway Plan, the 
Secretary and the Governor shall have 90 days to either approve or 
disapprove of the revised Canalway Plan.
    (e) Amendments to Canalway Plan.--The Secretary and the Governor 
shall review substantial amendments to the Canalway Plan. Funds 
appropriated pursuant to this title may not be expended to implement the 
changes made by such amendments until the Secretary and the Governor 
approve the amendments.

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

SEC. 807. DUTIES OF THE SECRETARY.

    (a) In General.--The Secretary is authorized to assist the 
Commission in the preparation of the Canalway Plan.
    (b) Technical Assistance.--Pursuant to an approved Canalway Plan, 
the Secretary is authorized to enter into cooperative agreements with, 
provide technical assistance to and award grants to the Commission to 
provide for the preservation and interpretation of the natural, 
cultural, historical, recreational, and scenic resources of the 
Corridor, if requested by the Commission.
    (c) Early Actions.--Prior to approval of the Canalway Plan, with the 
approval of the Commission, the Secretary may provide technical and 
planning assistance for early actions that are important to the purposes 
of this title and that protect and preserve resources.
    (d) Canalway Plan Implementation.--Upon approval of the Canalway 
Plan, the Secretary is authorized to implement those activities that the 
Canalway Plan has identified that are the responsibility of the 
Secretary or agent of the Secretary to undertake in the implementation 
of the Canalway Plan.
    (e) Detail.--Each fiscal year during the existence of the Commission 
and upon the request of the Commission, the Secretary shall detail to 
the Commission, on a nonreimbursable basis, two employees of the 
Department of the Interior to enable the Commission to carry out the 
Commission's duties with regard to the preparation and approval of the 
Canalway Plan. Such detail shall be without interruption or loss of 
civil service status, benefits, or privileges.

SEC. 808. DUTIES OF OTHER FEDERAL ENTITIES.

    Any Federal entity conducting or supporting any activity directly 
affecting the Corridor, and any unit of Government acting pursuant to a 
grant of Federal funds or a Federal permit or agreement conducting or 
supporting such activities may--
            (1) consult with the Secretary and the Commission with 
        respect to such activities;
            (2) cooperate with the Secretary and the Commission in 
        carrying out their duties under this title and coordinate such 
        activities with the carrying out of such duties; and
            (3) conduct or support such activities in a manner 
        consistent with the Canalway Plan unless the Federal entity, 
        after consultation with the Secretary and the Commission, 
        determines there is no practicable alternative.

SEC. 809. SAVINGS PROVISIONS.

    (a) Authority of Governments.--Nothing in this title shall be 
construed to modify, enlarge, or diminish any authority of the Federal, 
State, or local governments to regulate any use of land as provided for 
by law or regulation.
    (b) Zoning or Land.--Nothing in this title shall be construed to 
grant powers of zoning or land use to the Commission.
    (c) Local Authority and Private Property.--Nothing in this title 
shall be construed to affect or to authorize the Commission to interfere 
with--
            (1) the rights of any person with respect to private 
        property;
            (2) any local zoning ordinance or land use plan of the State 
        of New York or political subdivision thereof; or

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

            (3) any State or local canal-related development plans 
        including but not limited to the Canal Recreationway Plan and 
        the Canal Revitalization Program.

    (d) Fish and Wildlife.--The designation of the Corridor shall not be 
diminish the authority of the State of New York to manage fish and 
wildlife, including the regulation of fishing and hunting within the 
Corridor.

SEC. 810. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--
            (1) Corridor.--There is authorized to be appropriated for 
        the Corridor not more than $1,000,000 for any fiscal year. Not 
        more than a total of $10,000,000 may be appropriated for the 
        Corridor under this title.
            (2) Matching requirement.--Federal funding provided under 
        this paragraph may not exceed 50 percent of the total cost of 
        any activity carried out with such funds. The non-Federal share 
        of such support may be in the form of cash, services, or in-kind 
        contributions, fairly valued.

    (b) Other Funding.--In addition to the sums authorized in subsection 
(a), there are authorized to be appropriated to the Secretary of the 
Interior such sums as are necessary for the Secretary for planning and 
technical assistance.

                  TITLE IX--LAW ENFORCEMENT PAY EQUITY

SEC. 901. SHORT TITLE.

    This title may be cited as the ``Law Enforcement Pay Equity Act of 
2000''.

SEC. 902. ESTABLISHMENT OF UNIFORM SALARY SCHEDULE FOR UNITED STATES 
            SECRET SERVICE UNIFORMED DIVISION AND UNITED STATES PARK 
            POLICE.

    (a) In General.--Section 501(c)(1) of the District of Columbia 
Police and Firemen's Salary Act of 1958 (sec. 4-416(c)(1), D.C. Code) is 
amended to read as follows:
    ``(c)(1) The annual rates of basic compensation of officers and 
members of the United States Secret Service Uniformed Division and the 
United States Park Police, serving in classes corresponding or similar 
to those in the salary schedule in section 101, shall be fixed in 
accordance with the following schedule of rates:

 
--------------------------------------------------------------------------------------------------------------------------------------------------------
                   ``Salary class and title                       Step 1       Step 2       Step 3       Step 4       Step 5       Step 6       Step 7
--------------------------------------------------------------------------------------------------------------------------------------------------------
                      Time between steps                                      52 weeks
                                                                                    104 weeks
--------------------------------------------------------------------------------------------------------------------------------------------------------
                       Years in service                                          1            2            3            5            7            9
--------------------------------------------------------------------------------------------------------------------------------------------------------
1: Private...................................................       32,623       34,587       36,626       38,306       41,001       43,728       45,407
3: Detective.................................................                                 42,378       44,502       46,620       48,746       50,837
4: Sergeant..................................................                                              46,151       48,446       50,746       53,056
5: Lieutenant \1\............................................                                                           50,910       53,462       56,545
7: Captain \1\...............................................                                                                        59,802       62,799
8: Inspector/Major \1\.......................................                                                                        69,163       72,760
9: Deputy Chief \1\..........................................                                                                        79,768       85,158

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

 
10: Assistant Chief \2\
11: Chief, United States Secret Service Uniformed Division,
 United States Park Police \3\
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ The rate of basic pay for positions in Salary Class 5, 7, 8, and 9 is limited to 95 percent of the rate of pay for level V of the Executive
  Schedule.
\2\ The rate of basic pay for positions in Salary Class 10 will be equal to 95 percent of the rate of pay for level V of the Executive Schedule.
\3\ The rate of basic pay for positions in Salary Class 11 will be equal to the rate of pay for level V of the Executive Schedule.

 
--------------------------------------------------------------------------------------------------------------------------------------------------------
                   ``Salary class and title                       Step 8       Step 9      Step 10      Step 11      Step 12      Step 13      Step 14
--------------------------------------------------------------------------------------------------------------------------------------------------------
                      Time between steps                               104 weeks          156 weeks                        208 weeks
--------------------------------------------------------------------------------------------------------------------------------------------------------
                       Years in service                             11           13           15           18           22           26           30
--------------------------------------------------------------------------------------------------------------------------------------------------------
1: Private...................................................       47,107       48,801       50,498       53,448       55,394       57,036       58,746
3: Detective.................................................       52,972       55,086       57,204       61,212       63,337       65,462       67,426
4: Sergeant..................................................       55,372       57,691       59,999       63,558       65,867       68,176       70,221
5: Lieutenant \1\............................................       59,120       61,688       64,258       68,197       70,744       73,290       75,489
7: Captain \1\...............................................       65,797       68,757       71,747       76,292       79,309       82,325       84,796
8: Inspector/Major \1\.......................................       76,542       80,524       83,983       87,645       91,827       95,464       99,075
9: Deputy Chief \1\..........................................       90,578       95,980       99,968      103,957      107,945      111,933      115,291
10: Assistant Chief \2\
11: Chief, United States Secret Service Uniformed Division,
 United States Park Police \3\
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ The rate of basic pay for positions in Salary Class 5, 7, 8, and 9 is limited to 95 percent of the rate of pay for level V of the Executive
  Schedule.
\2\ The rate of basic pay for positions in Salary Class 10 will be equal to 95 percent of the rate of pay for level V of the Executive Schedule.
\3\ The rate of basic pay for positions in Salary Class 11 will be equal to the rate of pay for level V of the Executive Schedule.

    (b) Freeze of Current Rate for Locality-based Comparability 
Adjustments.--Notwithstanding any other provision of law, including this 
title or any provision of law amended by this title, no officer or 
member of the United States Secret Service Uniformed Division or the 
United States Park Police may be paid locality pay under section 5304 or 
section 5304a of title 5, United States Code, at a percentage rate for 
the applicable locality in

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

excess of the rate in effect for pay periods during calendar year 2000.
    (c) Conforming Amendments.--
            (1) Application of provisions to park police.--Section 
        501(c) of such Act (sec. 4-416(c), D.C. Code) is amended--
                    (A) in paragraph (2), by striking ``Treasury'' and 
                inserting the following: ``Treasury, and the annual 
                rates of basic compensation of officers and members of 
                the United States Park Police shall be adjusted by the 
                Secretary of the Interior,'';
                    (B) in paragraph (5), by inserting after ``Uniformed 
                Division'' the following: ``or officers and members of 
                the United States Park Police'';
                    (C) in paragraph (6)(A), by inserting after 
                ``Uniformed Division'' the following: ``or the United 
                States Park Police''; and
                    (D) in paragraph (7)(A), by inserting after 
                ``Uniformed Division'' the following: ``or the United 
                States Park Police''.
            (2) Termination of current adjustment authority.--Section 
        501(b) of such Act (sec. 4-416(b), D.C. Code) is amended by 
        adding at the end the following new paragraph:

    ``(4) This subsection shall not apply with respect to any pay period 
for which the salary schedule under subsection (c) applies to the United 
States Park Police.''.

SEC. 903. REVISION OF CAPS ON MAXIMUM COMPENSATION.

    (a) Annual Salary Under Schedule.--Section 501(c)(2) of the District 
of Columbia Police and Firemen's Salary Act of 1958 (sec. 4-416(c)(2), 
D.C. Code) is amended by striking the period at the end and inserting 
the following: ``, except that in no case may the annual rate of basic 
compensation for any such officer or member exceed the rate of basic pay 
payable for level IV of the Executive Schedule contained in subchapter 
II of chapter 53 of title 5, United States Code.''.
    (b) Repeal of Cap on Combined Basic Pay and Longevity Pay.--Section 
501(c) of such Act (sec. 4-416(c), D.C. Code) is amended by striking 
paragraph (4).
    (c) Limitation on Pay Period Earnings for Comp Time.--Section 1(h) 
of the Act entitled ``An Act to provide a 5-day week for officers and 
members of the Metropolitan Police force, the United States Park Police 
force, and the White House Police force, and for other purposes'', 
approved August 15, 1950 (sec. 4-1104(h), D.C. Code), is amended--
            (1) in paragraphs (1) and (2), by striking ``Metropolitan 
        Police force; or of the Fire Department of the District of 
        Columbia; or of the United States Park Police'' each place it 
        appears and inserting ``Metropolitan Police force or of the Fire 
        Department of the District of Columbia''; and
            (2) in paragraph (3), by inserting after ``United States 
        Secret Service Uniformed Division'' each
place it appears the following: ``or of the United States Park Police''.

SEC. 904. DETERMINATION OF SERVICE STEP ADJUSTMENTS.

    (a) Method for Determination of Adjustments.--Section 303(a) of the 
District of Columbia Police and Firemen's Salary Act of 1958 (sec. 4-
412(a), D.C. Code) is amended--
            (1) in the matter preceding paragraph (1), by ``Each'' and 
        inserting ``Except as provided in paragraph (5), each''; and

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

            (2) by adding at the end the following new paragraph:
            ``(5) Each officer and member of the United States Secret 
        Service Uniformed Division and the United States Park Police 
        with a current performance rating of `satisfactory' or better, 
        shall have a service step adjustment in the following manner:
                    ``(A) Each officer and member in service step 1, 2, 
                or 3 shall be advanced in compensation successively to 
                the next higher service step at the beginning of the 1st 
                pay period immediately subsequent to the completion of 
                52 calendar weeks of active service in the officer's or 
                member's service step.
                    ``(B) Each officer and member in service step 4, 5, 
                6, 7, 8, or 9 shall be advanced in compensation 
                successively to the next higher service step at the 
                beginning of the 1st pay period immediately subsequent 
                to the completion of 104 calendar weeks of active 
                service in the officer's or member's service step.
                    ``(C) Each officer and member in service step 10 
                shall be advanced in compensation successively to the 
                next higher service step at the beginning of the 1st pay 
                period immediately subsequent to the completion of 156 
                calendar weeks of active service in the officer's or 
                member's service step.
                    ``(D) Each officer and member in service steps 11, 
                12, or 13 shall be advanced in compensation successively 
                to the next higher service step at the beginning of the 
                1st pay period immediately subsequent to the completion 
                of 208 calendar weeks of active service in the officer's 
                or member's service step.''.

    (b) Use of Total Creditable Service To Determine Step Placement.--
Section 304 of such Act (sec. 4-413, D.C. Code) is amended--
            (1) in subsection (a), by striking ``(b)'' and inserting 
        ``(b) or (c)''; and
            (2) by adding at the end the following new subsection:

    ``(c)(1) Each officer and member of the United States Secret Service 
Uniformed Division or the United States Park Police who is promoted or 
transferred to a higher salary shall receive basic compensation in 
accordance with the officer's or member's total creditable service.
    ``(2) For purposes of this subsection, an officer's or member's 
creditable service is any police service in pay status with the United 
States Secret Service Uniformed Division, United States Park Police, or 
Metropolitan Police Department.''.
    (c) Conforming Amendment.--Section 401(a) of such Act (sec. 4-
415(a), D.C. Code) is amended by adding at the end the following new 
paragraph:
    ``(4) This subsection shall not apply to officers and members of the 
United States Secret Service Uniformed Division or the United States 
Park Police.''.

SEC. 905. CONVERSION TO NEW SALARY SCHEDULE.

    (a) In General.--
            (1) Determination of rates of basic pay.--Effective on the 
        first day of the 1st pay period beginning 6 months after the 
        date of enactment of this Act, the Secretary of the Treasury 
        shall fix the rates of basic pay for officers and members of

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

        the United States Secret Service Uniformed Division, and the 
        Secretary of the Interior shall fix the rates of basic pay for 
        officers and members of the United States Park Police, in 
        accordance with this subsection.
            (2) Placement on revised salary schedule.--
                    (A) In general.--Each officer and member shall be 
                placed in and receive basic compensation at the 
                corresponding scheduled service step of the salary 
                schedule under section 501(c) of the District of 
                Columbia Police and Firemen's Salary Act of 1958 (as 
                amended by section 902(a)) in accordance with the 
                member's total years of creditable service, receiving 
                credit for all service step adjustments. If the 
                scheduled rate of pay for the step to which the officer 
                or member would be assigned in accordance with this 
                paragraph is lower than the officer's or member's salary 
                immediately prior to the enactment of this paragraph, 
                the officer or member will be placed in and receive 
                compensation at the next higher service step.
                    (B) Credit for increases during transition.--Each 
                member whose position is to be converted to the salary 
                schedule under section 501(b) of the District of 
                Columbia Police and Firemen's Salary Act of 1958 (as 
                amended by subsection (a)) and who, prior to the 
                effective date of this section has earned, but has not 
                been credited with, an increase in his or her rate of 
                pay shall be afforded that increase before such member 
                is placed in the corresponding service step in the 
                salary schedule under section 501(b).
                    (C) Creditable service described.--For purposes of 
                this paragraph, an officer's or member's creditable 
                service is any police service in pay status with the 
                United States Secret Service Uniformed Division, United 
                States Park Police, or Metropolitan Police Department.

    (b) Hold Harmless for Current Total Compensation.--Notwithstanding 
any other provision of law, if the total rate of compensation for an 
officer or employee for any pay period occurring after conversion to the 
salary schedule pursuant to subsection (a) (determined by taking into 
account any locality-based comparability adjustments, longevity pay, and 
other adjustments paid in addition to the rate of basic compensation) is 
less than the officer's or employee's total rate of compensation (as so 
determined) on the date of enactment, the rate of compensation for the 
officer or employee for the pay period shall be equal to--
            (1) the rate of compensation on the date of enactment (as so 
        determined); increased by
            (2) a percentage equal to 50 percent of sum of the 
        percentage adjustments made in the rate of basic compensation 
        under section 501(c) of the District of Columbia Police and 
        Firemen's Salary Act of 1958 (as amended by subsection (a)) for 
        pay periods occurring after the date of enactment and prior to 
        the pay period involved.

    (c) Conversion Not Treated as Transfer or Promotion.--The conversion 
of positions and individuals to appropriate classes of the salary 
schedule under section 501(c) of the District of Columbia Police and 
Firemen's Salary Act of 1958 (as amended by section 902(a)) and the 
initial adjustments of rates of basic pay of those positions and 
individuals in accordance with subsection (a) shall not be considered to 
be transfers or promotions within the meaning

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

of section 304 of the District of Columbia Police and Firemen's Salary 
Act of 1958 (sec. 4-413, D.C. Code).
    (d) Transfer of Credit for Satisfactory Service.--Each individual 
whose position is converted to the salary schedule under section 501(c) 
of the District of Columbia Police and Firemen's Salary Act of 1958 (as 
amended by section 902(a)) in accordance with subsection (a) shall be 
granted credit for purposes of such individual's first service step 
adjustment under the salary schedule in such section 501(c) for all 
satisfactory service performed by the individual since the individual's 
last increase in basic pay prior to the adjustment under that section.
    (e) Adjustment To Take Into Account General Schedule Adjustments 
During Transition.--The rates provided under the salary schedule under 
section 501(c) of the District of Columbia Police and Firemen's Salary 
Act of 1958 (as amended by section 902(a)) shall be increased by the 
percentage of any annual adjustment applicable to the General Schedule 
authorized under section 5303 of title 5, United States Code, which 
takes effect during the period which begins on the date of the enactment 
of this Act and ends on the first day of the first pay period beginning 
6 months after the date of enactment of this Act.
    (f ) Conversion Not Treated as Salary Increase for Purposes of 
Certain Pensions and Allowances.--The conversion of positions and 
individuals to appropriate classes of the salary schedule under section 
501(c) of the District of Columbia Police and Firemen's Salary Act of 
1958 (as amended by section 2(a)) and the initial adjustments of rates 
of basic pay of those positions and individuals in accordance with 
subsection (a) shall not be treated as an increase in salary for 
purposes of section 3 of the Act entitled ``An Act to provide increased 
pensions for widows and children of deceased members of the Police 
Department and the Fire Department of the District of Columbia'', 
approved August 4, 1949 (sec. 4-604, D.C. Code), or section 301 of the 
District of Columbia Police and Firemen's Salary Act of 1953 (sec. 4-
605, D.C. Code).

SEC. 906. PAY ADJUSTMENTS FOR CERTAIN POSITIONS.

    (a) Technician Duty.--Section 302 of the District of Columbia Police 
and Firemen's Salary Act of 1958 (sec. 4-411, D.C. Code) is amended--
            (1) in subsection (b), by striking ``$810 per annum'' and 
        inserting the following: ``$810 per annum, except in the case of 
        an officer or member of the United States Secret Service 
        Uniformed Division or the United States Park Police, who shall 
        receive a per annum amount equal to 6 percent of the sum of such 
        officer's or member's rate of basic compensation plus locality 
        pay adjustments'';
            (2) in subsection (c), by striking ``$595 per annum'' each 
        place it appears and inserting the following: ``$595 per annum, 
        except in the case of an officer or member of the United States 
        Park Police, who shall receive a per annum amount equal to 6 
        percent of the sum of such officer's or member's rate of basic 
        compensation plus locality pay adjustments''; and
            (3) in subsection (e), by inserting after ``Whenever any 
        officer or member'' the following: ``(other than an officer or 
        member of the United States Secret Service Uniformed Division or 
        the United States Park Police)''.

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

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

SEC. 907. CONFORMING PROVISIONS RELATING TO FEDERAL LAW ENFORCEMENT PAY 
            REFORM ACT.

    (a) Termination of Existing Special Salary Rates and Adjustments.--
Beginning on the effective date of this Act--
            (1) no existing special salary rates shall be authorized for 
        members of the United States Park Police under section 5305 of 
        title 5, United States Code (or any previous similar provision 
        of law); and
            (2) no special rates of pay or special pay adjustments shall 
        be applicable to members of the United States Park Police 
        pursuant to section 405 of the Federal Law Enforcement Pay 
        Reform Act of 1990.

    (b) Conforming Amendments.--(1) Section 405(b) of the Federal Law 
Enforcement Pay Reform Act of 1990 (5 U.S.C. 5303 note) is amended to 
read as follows:
    ``(b) This subsection applies with respect to any--
            ``(1) special agent within the Diplomatic Security Service;
            ``(2) probation officer (referred to in section 3672 of 
        title 18, United States Code); or
            ``(3) pretrial services officer (referred to in section 3153 
        of title 18, United States Code).''.

    (2) Section 405(c) of such Act (5 U.S.C. 5303 note) is amended to 
read as follows:
    ``(c) For purposes of this section, the term `appropriate agency 
head' means--
            ``(1) with respect to any individual under subsection 
        (b)(1), the Secretary of State; or
            ``(2) with respect to any individual under subsection (b)(2) 
        or (b)(3), the Director of the Administrative Office of the 
        United States Courts.''.

SEC. 908. SERVICE LONGEVITY PAYMENTS FOR METROPOLITAN POLICE DEPARTMENT.

    (a) Inclusion of Service Longevity Payments in Amount of Federal 
Benefit Payments Made to Metropolitan Police Department Officers and 
Members.--Section 11012 of the District of Columbia Retirement 
Protection Act of 1997 (Public Law 105-33; 111 Stat. 718; D.C. Code, 
sec. 1-762.2) is amended by adding at the end the following new 
subsection:
    ``(e) Treatment of Increases in Certain Police Service Longevity 
Payments.--For purposes of subsection (a), in determining the amount of 
a Federal benefit payment made to an officer or member of the 
Metropolitan Police Department, the benefit payment to which the officer 
or member is entitled under the District Retirement Program shall 
include any amounts which would have been included in the benefit 
payment under such Program if the amendments made by the Police 
Recruiting and Retention Enhancement Amendment Act of 1999 had taken 
effect prior to the freeze date.''.

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

    (b) Conforming Amendment.--Section 11003(5) of such Act (Public Law 
105-33; 111 Stat. 717; D.C. Code, sec. 1-761.2(5)) is amended by 
inserting after ``except as'' the following: ``provided under section 
11012(e) and as''.
    (c) Effective Date.--The amendments made by this section shall apply 
with respect to Federal benefit payments made after the date of the 
enactment of this Act.

SEC. 909. EFFECTIVE DATE.

    Except as provided in section 908(c), this title and the amendments 
made by this title shall become effective on the first day of the first 
pay period beginning 6 months after the date of enactment.

                                 TITLE X

               DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

                        Administrative Provisions

    Sec. 1001. Section 206(d) of the Departments of Veterans Affairs and 
Housing and Urban Development, and Independent Agencies Appropriations 
Act, 2000 (42 U.S.C. 12701 note) is amended--
            (1) in paragraph (1), by striking ``V'' and inserting 
        ``III''; and
            (2) in paragraph (4), by striking ``reimbursable'' and 
        inserting ``non-reimbursable''.

    Sec. 1002. For purposes of part 2, subpart B of the Federal Housing 
Enterprises Financial Safety and Soundness Act of 1992 (Public Law 102-
550), notwithstanding any other provision of law or regulation, for 
purposes of measuring the extent of compliance with the housing goals 
for the years 2001, 2002, and 2003, the Secretary of Housing and Urban 
Development shall assign, in the case of the Federal Home Loan Mortgage 
Corporation, 1.35 units of credit toward achievement of each housing 
goal for each unit of multifamily housing (excepting units located in 
properties having between 5 and 50 units) qualifying as affordable under 
such housing goal.
    Sec. 1003. Notwithstanding any other provision of law, neither the 
City of Toledo, Ohio, nor the Secretary of Housing and Urban Development 
(HUD) is required to enforce any requirements associated with Housing 
Development Grant number 00H006H6402 provided to the City of Toledo, 
Ohio, that prohibit or restrict the conversion of the rental units in 
the Beacon Place project to condominium ownership: Provided, That the 
City of Toledo and the Secretary of HUD are authorized to take any 
actions necessary to cause any such prohibition or restriction to be 
removed from the appropriate land records and otherwise terminated: 
Provided further, That converted units shall remain available as rental 
housing to those persons, including low- and very-low-income persons who 
presently reside in the units: Provided further, That the conversion 
proposal for Beacon Place apartments shall not reduce the number of 
affordable housing units in Toledo: Provided further, That any and all 
proceeds from such conversion are used to retire debt associated with 
the Beacon Place project or to rehabilitate the properties known as the 
Cubbon Properties.

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

    Sec. 1004. The Comptroller General of the United States shall 
conduct a study on the following topics--
            (a)(1) The adequacy of the capital structure of the Federal 
        Home Loan Bank (FHLB) System as it relates to the risks posed 
        by: (A) the traditional advances business of the FHLB System; 
        (B) the expanded collateral provisions and permissible uses of 
        advances under the Gramm-Leach-Bliley Act of 1999; and (C) the 
        MPF, and other programs providing for the direct acquisition of 
        mortgages. The analysis should examine the credit risk, interest 
        rate risk, and operations risk associated with each structure;
            (2) The risks associated with further growth in the direct 
        acquisition of mortgages by the Federal Home Loan Bank System; 
        and
            (3) A comparison of the risk-based capital standard proposed 
        by the Federal Housing Finance Board for the Federal Home Loan 
        Bank System to the standard proposed by the Office of Federal 
        Housing Enterprise Oversight for the Federal National Mortgage 
        Association and the Federal Home Loan Mortgage Corporation.
            (b) Not later than 6 months after the date of the enactment 
        of this Act, the Comptroller General shall submit to the 
        Committee on Banking, Housing, and Urban Affairs of the Senate 
        and the Committee on Banking and Financial Services of the House 
        of Representatives a report on the study required under 
        subsection (a).

                                TITLE XI

                       DEPARTMENT OF THE TREASURY

                        Administrative Provision

SEC. 1101. HONORING THE NAVAJO CODE TALKERS.

    (a) Congress finds that--
            (1) on December 7, 1941, the Japanese Empire attacked Pearl 
        Harbor and war was declared by Congress the following day;
            (2) the military code, developed by the United States for 
        transmitting messages, had been deciphered by the Japanese, and 
        a search by United States intelligence was made to develop new 
        means to counter the enemy;
            (3) the United States Government called upon the Navajo 
        Nation to support the military effort by recruiting and 
        enlisting 29 Navajo men to serve as Marine Corps Radio 
        Operators;
            (4) the number of Navajo enlistees later increased to more 
        than 350;
            (5) at the time, the Navajos were often treated as second-
        class citizens, and they were a people who were discouraged from 
        using their own native language;
            (6) the Navajo Marine Corps Radio Operators, who became 
        known as the ``Navajo Code Talkers'', were used to develop a 
        code using their native language to communicate military 
        messages in the Pacific;
            (7) to the enemy's frustration, the code developed by these 
        Native Americans proved to be unbreakable, and was used 
        extensively throughout the Pacific theater;

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

            (8) the Navajo language, discouraged in the past, was 
        instrumental in developing the most significant and successful 
        military code of the time;
            (9) at Iwo Jima alone, the Navajo Code Talkers passed over 
        800 error-free messages in a 48-hour period;
            (10) use of the Navajo Code was so successful, that--
                    (A) military commanders credited it in saving the 
                lives of countless American soldiers and in the success 
                of the engagements of the United States in the battles 
                of Guadalcanal, Tarawa, Saipan, Iwo Jima, and Okinawa;
                    (B) some Code Talkers were guarded by fellow 
                marines, whose role was to kill them in case of imminent 
                capture by the enemy; and
                    (C) the Navajo Code was kept secret for 23 years 
                after the end of World War II;
            (11) following the conclusion of World War II, the 
        Department of Defense maintained the secrecy of the Navajo code 
        until it was declassified in 1968; and
            (12) only then did a realization of the sacrifice and valor 
        of these brave Native Americans emerge from history.

    (b)(1) To express recognition by the United States and its citizens 
in honoring the Navajo Code Talkers, who distinguished themselves in 
performing a unique, highly successful communications operation that 
greatly assisted in saving countless lives and hastening the end of 
World War II in the Pacific, the President is authorized--
            (A) to award to each of the original 29 Navajo Code Talkers, 
        or a surviving family member, on behalf of the Congress, a gold 
        medal of appropriate design, honoring the Navajo Code Talkers; 
        and
            (B) to award to each person who qualified as a Navajo Code 
        Talker (MOS 642), or a surviving family member, on behalf of the 
        Congress, a silver medal of appropriate design, honoring the 
        Navajo Code Talkers.

    (2) For purposes of the awards authorized by paragraph (1), the 
Secretary of the Treasury (in this section referred to as the 
``Secretary'') shall strike gold and silver medals with suitable 
emblems, devices, and inscriptions, to be determined by the Secretary.
    (c) The Secretary may strike and sell duplicates in bronze of the 
medals struck pursuant to this section, under such regulations as the 
Secretary may prescribe, and a price sufficient to cover the costs 
thereof, including labor, materials, dies, use of machinery, and 
overhead expenses, and the cost of the medals.
    (d) The medals struck pursuant to this section are national medals 
for purposes of chapter 51, of title 31, United States Code.
    (e)(1) There is authorized to be charged against the United States 
Mint Public Enterprise Fund, such sums as may be necessary to pay for 
the costs of the medals authorized by this section.
    (2) Amounts received from the sale of duplicate medals under this 
section shall be deposited in the United States Mint Public Enterprise 
Fund.

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

                                TITLE XII

                     ENVIRONMENTAL PROTECTION AGENCY

                        Administrative Provision

SEC. 1201. ABOVEGROUND STORAGE TANK GRANT PROGRAM.

    (a) Definitions.--In this provision:
            (1) Aboveground storage tank.--The term ``aboveground 
        storage tank'' means any tank or combination of tanks (including 
        any connected pipe)--
                    (A) that is used to contain an accumulation of 
                regulated substances; and
                    (B) the volume of which (including the volume of any 
                connected pipe) is located wholly above the surface of 
                the ground.
            (2) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency.
            (3) Denali commission.--The term ``Denali Commission'' means 
        the commission established by section 303(a) of the Denali 
        Commission Act of 1998 (42 U.S.C. 3121 note).
            (4) Federal environmental law.--The term ``Federal 
        environmental law'' means--
                    (A) the Oil Pollution Control Act of 1990 (33 U.S.C. 
                2701 et seq.);
                    (B) the Comprehensive Environmental Response, 
                Compensation, and Liability Act of 1980 (42 U.S.C. 9601 
                et seq.);
                    (C) the Solid Waste Disposal Act (42 U.S.C. 6901 et 
                seq.);
                    (D) the Federal Water Pollution Control Act (33 
                U.S.C. 1251 et seq.); or
                    (E) any other Federal law that is applicable to the 
                release into the environment of a regulated substance, 
                as determined by the Administrator.
            (5) Native village.--The term ``Native village'' has the 
        meaning given the term in section 11(b) in Public Law 92-203 (85 
        Stat. 688).
            (6) Program.--The term ``program'' means the Aboveground 
        Storage Tank Grant Program established by subsection (b)(1).
            (7) Regulated substance.--The term ``regulated substance'' 
        has the meaning given the term in section 9001 of the Solid 
        Waste Disposal Act (42 U.S.C. 6991).
            (8) State.--The term ``State'' means the State of Alaska.

      (b) Establishment.--
            (1) In general.--There is established a grant program to be 
        known as the ``Aboveground Storage Tank Grant Program''.
            (2) Grants.--Under the program, the Administrator shall 
        award a grant to--
                    (A) the State, on behalf of a Native village; or
                    (B) the Denali Commission.

      (c) Use of Grants.--The State or the Denali Commission shall use 
the funds of a grant under subsection (b) to repair, upgrade, or replace 
one or more aboveground storage tanks that--

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

            (1) leaks or poses an imminent threat of leaking, as 
        certified by the Administrator, the Commandant of the Coast 
        Guard, or any other appropriate Federal or State agency (as 
        determined by the Administrator); and
            (2) is located in a Native village--
                    (A) the median household income of which is less 
                than 80 percent of the median household income in the 
                State;
                    (B) that is located--
                          (i) within the boundaries of--
                                    (I) a unit of the National Park 
                                System;
                                    (II) a unit of the National Wildlife 
                                Refuge System; or
                                    (III) a National Forest; or
                          (ii) on public land under the administrative 
                      jurisdiction of the Bureau of Land Management; or
                    (C) that receives payments from the Federal 
                Government under chapter 69 of title 31, United States 
                Code (commonly known as ``payments in lieu of taxes'').

    (d) Reports.--Not later than 1 year after the date on which the 
State or the Denali Commission receives a grant under subsection (c), 
and annually thereafter, the State or the Denali Commission, as the case 
may be, shall submit a report describing each project completed with 
grant funds and any projects planned for the following year, to--
            (1) the Administrator;
            (2) the Committee on Resources of the House of 
        Representatives;
            (3) the Committee on Environment and Public Works of the 
        Senate;
            (4) the Committee on Appropriations of the House of 
        Representatives; and
            (5) the Committee on Appropriations of the Senate.

    (e) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this Act, to remain available until expended--
            (1) $20,000,000 for fiscal year 2001; and
            (2) such sums as are necessary for each fiscal year 
        thereafter.

                               TITLE XIII

              NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

                        ADMINISTRATIVE PROVISION

    Sec. 1301. Of the proceeds in any fiscal year from the sale of 
timber on Federal property at the John C. Stennis Space Center, or on 
additional real property within the restricted easement area adjacent to 
the Center, any funds that are in excess of the amount necessary for the 
expenses of commonly accepted forest management practices on such 
properties may be retained and used by the National Aeronautics and 
Space Administration for the acquisition from willing sellers of up to a 
total of 500 acres of real property to establish education and visitor 
programs and facilities that promote and preserve the regional and 
national history of the area, including the contributions of Stennis 
Space Center, and, as necessary, for wetlands mitigation.

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

            TITLE XIV--CERTAIN ALASKAN CRUISE SHIP OPERATIONS

SEC. 1401. PURPOSE.

    The purpose of this title is to:
            (1) Ensure that cruise vessels operating in the waters of 
        the Alexander Archipelago and the navigable waters of the United 
        States within the State of Alaska and within the Kachemak Bay 
        National Estuarine Research Reserve comply with all applicable 
        environmental laws, including, but not limited to, the Federal 
        Water Pollution Control Act, as amended (33 U.S.C. 1251 et 
        seq.), the Act to Prevent Pollution from Ships, as amended (33 
        U.S.C. 1901 et seq.), and the protections contained within this 
        title.
            (2) Ensure that cruise vessels do not discharge untreated 
        sewage within the waters of the Alexander Archipelago, the 
        navigable waters of the United States in the State of Alaska, or 
        within the Kachemak Bay National Estuarine Research Reserve.
            (3) Prevent the unregulated discharge of treated sewage and 
        graywater while in ports in the State of Alaska or traveling 
        near the shore in the Alexander Archipelago and the navigable 
        waters of the United States in the State of Alaska or within the 
        Kachemak Bay National Estuarine Research Reserve.
            (4) Ensure that discharges of sewage and graywater from 
        cruise vessels operating in the Alexander Archipelago and the 
        navigable waters of the United States in the State of Alaska or 
        within the Kachemak Bay National Estuarine Research Reserve can 
        be monitored for compliance with the requirements contained in 
        this title.

SEC. 1402. APPLICABILITY.

    This title applies to all cruise vessels authorized to carry 500 or 
more passengers for hire.

SEC. 1403. PROHIBITION ON DISCHARGE OF UNTREATED SEWAGE.

    No person shall discharge any untreated sewage from a cruise vessel 
into the waters of the Alexander Archipelago or the navigable waters of 
the United States within the State of Alaska or within the Kachemak Bay 
National Estuarine Research Reserve.

SEC. 1404. LIMITATIONS ON DISCHARGE OF TREATED SEWAGE OR GRAYWATER.

    (a) No person shall discharge any treated sewage or graywater from a 
cruise vessel into the waters of the Alexander Archipelago or the 
navigable waters of the United States within the State of Alaska or 
within the Kachemak Bay National Estuarine Research Reserve unless--
            (1) the cruise vessel is underway and proceeding at a speed 
        of not less than six knots;
            (2) the cruise vessel is not less than one nautical mile 
        from the nearest shore, except in areas designated by the 
        Secretary, in consultation with the State of Alaska;
            (3) the discharge complies with all applicable cruise vessel 
        effluent standards established pursuant to this title and any 
        other applicable law; and
            (4) the cruise vessel is not in an area where the discharge 
        of treated sewage or graywater is prohibited.

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

    (b) The Administrator, in consultation with the Secretary, may 
promulgate regulations allowing the discharge of treated sewage or 
graywater, otherwise prohibited under paragraphs (a)(1) and (a)(2) of 
this section, where the discharge meets effluent standards determined by 
the Administrator as appropriate for discharges into the marine 
environment. In promulgating such regulations, the Administrator shall 
take into account the best available scientific information on the 
environmental effects of the regulated discharges. The effluent 
discharge standards promulgated under this section shall, at a minimum, 
be consistent with all relevant State of Alaska water quality standards 
in force at the time of the enactment of this title.
    (c) Until such time as the Administrator promulgates regulations 
under paragraph (b) of this section, treated sewage and graywater may be 
discharged from vessels subject to this title in circumstances otherwise 
prohibited under paragraphs (a)(1) and (a)(2) of this section, provided 
that--
            (1) the discharge satisfies the minimum level of effluent 
        quality specified in 40 CFR 133.102, as in effect on the date of 
        enactment of this section;
            (2) the geometric mean of the samples from the discharge 
        during any 30-day period does not exceed 20 fecal coliform/100 
        ml and not more than 10 percent of the samples exceed 40 fecal 
        coliform/100 ml;
            (3) concentrations of total residual chlorine may not exceed 
        10.0 <greek-m>g/l; and
            (4) prior to any such discharge occurring, the owner, 
        operator or master, or other person in charge of a cruise 
        vessel, can demonstrate test results from at least five samples 
        taken from the vessel representative of the effluent to be 
        discharged, on different days over a 30-day period, conducted in 
        accordance with the guidelines promulgated by the Administrator 
        in 40 CFR Part 136, which confirm that the water quality of the 
        effluents proposed for discharge is in compliance with 
        paragraphs (1), (2), and (3) of this subsection. To the extent 
        not otherwise being done by the owner, operator, master or other 
        person in charge of a cruise vessel pursuant to section 1406, 
        the owner, operator, master or other person in charge of a 
        cruise vessel shall demonstrate continued compliance through 
        periodic sampling. Such sampling and test results shall be 
        considered environmental compliance records that must be made 
        available for inspection pursuant to section 1406(d) of this 
        title.

SEC. 1405. SAFETY EXCEPTION.

    Sections 1403 and 1404 of this title shall not apply to discharges 
made for the purpose of securing the safety of the cruise vessel or 
saving life at sea, provided that all reasonable precautions have been 
taken for the purpose of preventing or minimizing the discharge.

SEC. 1406. INSPECTION AND SAMPLING REGIME.

    (a) The Secretary shall incorporate into the commercial vessel 
examination program an inspection regime sufficient to verify that 
cruise vessels visiting ports in the State of Alaska or operating in the 
waters of the Alexander Archipelago or the navigable waters of the 
United States within the State of Alaska or within the Kachemak Bay 
National Estuarine Research Reserve are in full

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

compliance with this title, the Federal Water Pollution Control
Act, as amended, and any regulations issued thereunder, other applicable 
Federal laws and regulations, and all applicable international treaty 
requirements.

    (b) The inspection regime shall, at a minimum, include--
            (1) examination of environmental compliance records and 
        procedures; and
            (2) inspection of the functionality and proper operation of 
        installed equipment for abatement and control of any discharge.

    (c) The inspection regime may--
            (1) include unannounced inspections of any aspect of cruise 
        vessel operations, equipment or discharges pertinent to the 
        verification under subsection (a) of this section; and
            (2) require the owner, operator or master, or other person 
        in charge of a cruise vessel subject to this title to maintain 
        and produce a logbook detailing the times, types, volumes or 
        flow rates and locations of any discharges of sewage or 
        graywater under this title.

    (d) The inspection regime shall incorporate a plan for sampling and 
testing cruise vessel discharges to ensure that any discharges of sewage 
or graywater are in compliance with this title, the Federal Water 
Pollution Control Act, as amended, and any other applicable laws and 
regulations, and may require the owner, operator or master, or other 
person in charge of a cruise vessel subject to this title to conduct 
such samples or tests, and to produce any records of such sampling or 
testing at the request of the Secretary or Administrator.

SEC. 1407. CRUISE VESSEL EFFLUENT STANDARDS.

    Pursuant to this title and the authority of the Federal Water 
Pollution Control Act, as amended, the Administrator may promulgate 
effluent standards for treated sewage and graywater from cruise vessels 
operating in the waters of the Alexander Archipelago or the navigable 
waters of the United States within the State of Alaska or within the 
Kachemak Bay National Estuarine Research Reserve. Regulations 
implementing such standards shall take into account the best available 
scientific information on the environmental effects of the regulated 
discharges and the availability of new technologies for wastewater 
treatment. Until such time as the Administrator promulgates such 
effluent standards, treated sewage effluent discharges shall not have a 
fecal coliform bacterial count of greater than 200 per 100 milliliters 
nor suspended solids greater than 150 milligrams per liter.

SEC. 1408. REPORTS.

    (a) Any owner, operator or master, or other person in charge of a 
cruise vessel who has knowledge of a discharge from the cruise vessel in 
violation of section 1403 or 1404 or pursuant to section 1405 of this 
title, or any regulations promulgated thereunder, shall immediately 
report that discharge to the Secretary, who shall provide a copy to the 
Administrator upon request.
    (b) The Secretary may prescribe the form of reports required under 
this section.

SEC. 1409. ENFORCEMENT.

    (a) Administrative Penalties.--

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

            (1) Violations.--Any person who violates section 1403, 1404, 
        1408, or 1413 of this title, or any regulations promulgated 
        pursuant to this title may be assessed a class I or class II 
        civil penalty by the Secretary or Administrator.
            (2) Classes of penalties.--
                    (A) Class i.--The amount of a class I civil penalty 
                under this section may not exceed $10,000 per violation, 
                except that the maximum amount of any class I civil 
                penalty under this section shall not exceed $25,000. 
                Before assessing a civil penalty under this clause, the 
                Secretary or Administrator, as the case may be, shall 
                give to the person to be assessed such penalty written 
                notice of the Secretary's or Administrator's proposal to 
                assess the penalty and the opportunity to request, 
                within 30 days of the date the notice is received by 
                such person, a hearing on the proposed penalty. Such 
                hearing shall not be subject to section 554 or 556 of 
                title 5, but shall provide a reasonable opportunity to 
                be heard and to present evidence.
                    (B) Class ii.--The amount of a class II civil 
                penalty under this section may not exceed $10,000 per 
                day for each day during which the violation continues, 
                except that the maximum amount of any class II civil 
                penalty under this section shall not exceed $125,000. 
                Except as otherwise provided in this subsection, a class 
                II civil penalty shall be assessed and collected in the 
                same manner, and subject to the same provisions as in 
                the case of civil penalties assessed and collected after 
                notice and an opportunity for a hearing on the record in 
                accordance with section 554 of title 5, United States 
                Code. The Secretary and Administrator may issue rules 
                for discovery procedures for hearings under this 
                paragraph.
            (3) Rights of interested persons.--
                    (A) Public notice.--Before issuing an order 
                assessing a class II civil penalty under this section, 
                the Secretary or Administrator, as the case may be, 
                shall provide public notice of and reasonable 
                opportunity to comment on the proposed issuance of each 
                order.
                    (B) Presentation of evidence.--Any person who 
                comments on a proposed assessment of a class II civil 
                penalty under this section shall be given notice of any 
                hearing held under this paragraph and of the order 
                assessing such penalty. In any hearing held under this 
                paragraph, such person shall have a reasonable 
                opportunity to be heard and present evidence.
                    (C) Rights of interested persons to a hearing.--If 
                no hearing is held under subsection (2) before issuance 
                of an order assessing a class II civil penalty under 
                this section, any person who commented on the proposed 
                assessment may petition, within 30 days after the 
                issuance of such order, the Administrator or Secretary, 
                as the case may be, to set aside such order and to 
                provide a hearing on the penalty. If the evidence 
                presented by the petitioner in support of the petition 
                is material and was not considered in the issuance of 
                the order, the Administrator or Secretary shall 
                immediately set aside such order and provide a hearing 
                in accordance with subsection (2)(B). If the 
                Administrator or Secretary denies a hearing under

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

                this clause, the Administrator or Secretary shall 
                provide to the petitioner, and publish in the Federal 
                Register, notice of and the reasons for such denial.
            (4) Finality of order.--An order assessing a class II civil 
        penalty under this paragraph shall become final 30 days after 
        its issuance unless a petition for judicial review is filed 
        under subparagraph (6) or a hearing is requested under 
        subsection (3)(C). If such a hearing is denied, such order shall 
        become final 30 days after such denial.
            (5) Effect of action on compliance.--No action by the 
        Administrator or Secretary under this paragraph shall affect any 
        person's obligation to comply with any section of this title.
            (6) Judicial review.--Any person against whom a civil 
        penalty is assessed under this paragraph or who commented on the 
        proposed assessment of such penalty in accordance with 
        subsection (3) may obtain review of such assessment--
                    (A) in the case of assessment of a class I civil 
                penalty, in the United States District Court for the 
                District of Columbia or in the District of Alaska; or
                    (B) in the case of assessment of a class II civil 
                penalty, in the United States Court of Appeals for the 
                District of Columbia Circuit or for any other circuit in 
                which such person resides or transacts business, by 
                filing a notice of appeal in such court within the 30-
                day period beginning on the date the civil penalty order 
                is issued and by simultaneously sending a copy of such 
                notice by certified mail to the Administrator or 
                Secretary, as the case may be, and the Attorney General. 
                The Administrator or Secretary shall promptly file in 
                such court a certified copy of the record on which the 
                order was issued. Such court shall not set aside or 
                remand such order unless there is not substantial 
                evidence in the record, taken as a whole, to support the 
                finding of a violation or unless the Administrator's or 
                Secretary's assessment of the penalty constitutes an 
                abuse of discretion and shall not impose additional 
                civil penalties for the same violation unless the 
                Administrator's or Secretary's assessment of the penalty 
                constitutes an abuse of discretion.
            (7) Collection.--If any person fails to pay an assessment of 
        a civil penalty--
                    (A) after the assessment has become final, or
                    (B) after a court in an action brought under 
                subsection (6) has entered a final judgment in favor of 
                the Administrator or Secretary, as the case may be, the 
                Administrator or Secretary shall request the Attorney 
                General to bring a civil action in an appropriate 
                district court to recover the amount assessed (plus 
                interest at currently prevailing rates from the date of 
                the final order or the date of the final judgment, as 
                the case may be). In such an action, the validity, 
                amount, and appropriateness of such penalty shall not be 
                subject to review. Any person who fails to pay on a 
                timely basis the amount of an assessment of a civil 
                penalty as described in the first sentence of this 
                subparagraph shall be required to pay, in addition to 
                such amount and interest, attorneys fees and costs for 
                collection proceedings and a quarterly nonpayment 
                penalty for each quarter during
which such failure to pay persists. Such

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

nonpayment penalty shall be in an amount equal to 20 percent of the 
aggregate amount of such person's penalties and nonpayment penalties 
which are unpaid as of the beginning of such quarter.
            (8) Subpoenas.--The Administrator or Secretary, as the case 
        may be, may issue subpoenas for the attendance and testimony of 
        witnesses and the production of relevant papers, books, or 
        documents in connection with hearings under this section. In 
        case of contumacy or refusal to obey a subpoena issued pursuant 
        to this subsection and served upon any person, the district 
        court of the United States for any district in which such person 
        is found, resides, or transacts business, upon application by 
        the United States and after notice to such person, shall have 
        jurisdiction to issue an order requiring such person to appear 
        and give testimony before the Administrator or Secretary or to 
        appear and produce documents before the Administrator or 
        Secretary, or both, and any failure to obey such order of the 
        court may be punished by such court as a contempt thereof.

    (b) Civil Penalties.--
            (1) In General.--Any person who violates section 1403, 1404, 
        1408, or 1413 of this title, or any regulations promulgated 
        pursuant to this title shall be subject to a civil penalty not 
        to exceed $25,000 per day for each violation. Each day a 
        violation continues constitutes a separate violation.
            (2) Jurisdiction.--An action to impose a civil penalty under 
        this section may be brought in the district court of the United 
        States for the district in which the defendant is located, 
        resides, or transacts business, and such court shall have 
        jurisdiction to assess such penalty.
            (3) Limitation.--A person is not liable for a civil judicial 
        penalty under this paragraph for a violation if the person has 
        been assessed a civil administrative penalty under paragraph (a) 
        for the violation.

    (c) Determination of Amount.--In determining the amount of a civil 
penalty under paragraphs (a) or (b) of this section, the court, the 
Secretary or the Administrator, as the case may be, shall consider the 
seriousness of the violation or violations, the economic benefit (if 
any) resulting from the violation, any history of such violations, any 
good-faith efforts to comply with the applicable requirements, the 
economic impact of the penalty on the violator, and other such matters 
as justice may require.
    (d) Criminal Penalties.--
            (1) Negligent violations.--Any person who negligently 
        violates section 1403, 1404, 1408, or 1413 of this title, or any 
        regulations promulgated pursuant to this title commits a Class A 
        misdemeanor.
            (2) Knowing violations.--Any person who knowingly violates 
        section 1403, 1404, 1408, or 1413 of this title, or any 
        regulations promulgated pursuant to this title commits a Class D 
        felony.
            (3) False statements.--Any person who knowingly makes any 
        false statement, representation, or certification in any record, 
        report or other document filed or required to be maintained 
        under this title or the regulations issued thereunder, or who 
        falsifies, tampers with, or knowingly renders inaccurate any 
        testing or monitoring device or method required to be

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

        maintained under this title, or the regulations issued 
        thereunder, commits a Class D felony.

    (e) Awards.--
            (1) The Secretary, the Administrator, or the court, when 
        assessing any fines or civil penalties, as the case may be, may 
        pay from any fines or civil penalties collected under this 
        section an amount not to exceed one-half of the penalty or fine 
        collected, to any individual who furnishes information which 
        leads to the payment of the penalty or fine. If several 
        individuals provide such information, the amount shall be 
        divided equitably among such individuals. No officer or employee 
        of the United States, the State of Alaska or any federally 
        recognized Tribe who furnishes information or renders service in 
        the performance of his or her official duties shall be eligible 
        for payment under this subsection.
            (2) The Secretary, Administrator or the court, when 
        assessing any fines or civil penalties, as the case may be, may 
        pay, from any fines or civil penalties collected under this 
        section, to the State of Alaska or to any federally recognized 
        Tribe providing information or investigative assistance which 
        leads to payment of the penalty or fine, an amount which 
        reflects the level of information or investigative assistance 
        provided. Should the State of Alaska or a federally recognized 
        Tribe and an individual under paragraph (1) of this section be 
        eligible for an award, the Secretary, the Administrator, or the 
        court, as the case may be, shall divide the amount equitably.

    (f ) Liability in Rem.--A cruise vessel operated in violation of 
this title or the regulations issued thereunder is liable in rem for any 
fine imposed under subsection (d) of this section or for any civil 
penalty imposed under subsections (a) or (b) of this section, and may be 
proceeded against in the United States district court of any district in 
which the cruise vessel may be found.
    (g) Compliance Orders.--
            (1) In general.--Whenever on the basis of any information 
        available to him the Administrator finds that any person is in 
        violation of section 1403, 1404, 1408, or 1413 of this title, or 
        any regulations promulgated pursuant to this title, the 
        Administrator shall issue an order requiring such person to 
        comply with such section or requirement, or shall bring a civil 
        action in accordance with subsection (b).
            (2) Copies of orders, service.--A copy of any order issued 
        under this subsection shall be sent immediately by the 
        Administrator to the State of Alaska. In any case in which an 
        order under this subsection is issued to a corporation, a copy 
        of such order shall be served on any appropriate corporate 
        officer. Any order issued under this subsection shall be by 
        personal service, shall state with reasonable specificity the 
        nature of the violation, and shall specify a time for compliance 
        not to exceed 30 days in the case of a violation of an interim 
        compliance schedule or operation and maintenance requirement and 
        not to exceed a time the Administrator determines to be 
        reasonable in the case of a violation of a final deadline, 
        taking into account the seriousness of the violation and any 
        good faith efforts to comply with applicable requirements.

    (h) Civil Actions.--The Administrator is authorized to commence a 
civil action for appropriate relief, including a permanent or temporary 
injunction, for any violation for which he is authorized

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

to issue a compliance order under this subsection. Any action under 
subsection (h) may be brought in the district court of the United States 
for the district in which the defendant is located or resides or is 
doing business, and such court shall have jurisdiction to restrain such 
violation and to require compliance. Notice of the commencement of such 
action shall be given immediately to the State of Alaska.

SEC. 1410. DESIGNATION OF CRUISE VESSEL NO-DISCHARGE ZONES.

    If the State of Alaska determines that the protection and 
enhancement of the quality of some or all of the waters of the Alexander 
Archipelago or the navigable waters of the United States within the 
State of Alaska or within the Kachemak Bay National Estuarine Research 
Reserve require greater environmental protection, the State of Alaska 
may petition the Administrator to prohibit the discharge of graywater 
and sewage from cruise vessels operating in such waters. The 
establishment of such a prohibition shall be achieved in the same manner 
as the petitioning process and prohibition of the discharge of sewage 
pursuant to section 312(f ) of the Federal Water Pollution Control Act, 
as amended, and the regulations promulgated thereunder.

SEC. 1411. SAVINGS CLAUSE.

    (a) Nothing in this title shall be construed as restricting, 
affecting, or amending any other law or the authority of any department, 
instrumentality, or agency of the United States.
    (b) Nothing in this title shall in any way affect or restrict, or be 
construed to affect or restrict, the authority of the State of Alaska or 
any political subdivision thereof--
            (1) to impose additional liability or additional 
        requirements; or
            (2) to impose, or determine the amount of a fine or penalty 
        (whether criminal or civil in nature) for any violation of law; 
        relating to the discharge of sewage (whether treated or 
        untreated) or graywater in the waters of the Alexander 
        Archipelago and the navigable waters of the United States within 
        the State of Alaska or within the Kachemak Bay National 
        Estuarine Research Reserve.

SEC. 1412. REGULATIONS.

    The Secretary and the Administrator each may prescribe any 
regulations necessary to carry out the provisions of this title.

SEC. 1413. INFORMATION GATHERING AUTHORITY.

    The authority of sections 308(a) and (b) of the Federal Water 
Pollution Control Act, as amended, shall be available to the 
Administrator to carry out the provisions of this title. The 
Administrator and the Secretary shall minimize, to the extent 
practicable, duplication of or inconsistency with the inspection, 
sampling, testing, recordkeeping, and reporting requirements established 
by the Secretary under section 1406 of this title.

SEC. 1414. DEFINITIONS.

    In this title:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the United States Environmental Protection 
        Agency.

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

            (2) Cruise vessel.--The term ``cruise vessel'' means a 
        passenger vessel as defined in section 2101(22) of title 46, 
        United States Code. The term ``cruise vessel'' does not include 
        a vessel of the United States operated by the Federal Government 
        or a vessel owned and operated by the government of a State.
            (3) Discharge.--The term ``discharge'' means any release 
        however caused from a cruise vessel, and includes any escape, 
        disposal, spilling, leaking, pumping, emitting, or emptying.
            (4) Graywater.--The term ``graywater'' means only galley, 
        dishwasher, bath, and laundry waste water. The term does not 
        include other wastes or waste streams.
            (5) Navigable waters.--The term ``navigable waters'' has the 
        same meaning as in section 502 of the Federal Water Pollution 
        Control Act, as amended.
            (6) Person.--The term ``person'' means an individual, 
        corporation, partnership, limited liability company, 
        association, State, municipality, commission, or political 
        subdivision of a State, or any federally recognized tribe.
            (7) Secretary.--The term ``Secretary'' means the Secretary 
        of the department in which the United States Coast Guard is 
        operating.
            (8) Sewage.--The term ``sewage'' means human body wastes and 
        the wastes from toilets and other receptacles intended to 
        receive or retain body waste.
            (9) Treated sewage.--The term ``treated sewage'' means 
        sewage meeting all applicable effluent limitation standards and 
        processing requirements of the Federal Water Pollution Control 
        Act, as amended and of this title, and regulations promulgated 
        under either.
            (10) Untreated sewage.--The term ``untreated sewage'' means 
        sewage that is not treated sewage.
            (11) Waters of the alexander archipelago.--The term ``waters 
        of the Alexander Archipelago'' means all waters under the 
        sovereignty of the United States within or near Southeast 
        Alaska, beginning at a point 58/11'41''N, 136/39'25''W [near 
        Cape Spencer Light], thence southeasterly along a line three 
        nautical miles seaward of the baseline from which the breadth of 
        the territorial sea is measured in the Pacific Ocean and the 
        Dixon Entrance, except where this line intersects geodesics 
        connecting the following five pairs of points:
                    (1) 58/05'17''N, 136/33'49''W and 58/11'41''N, 
                136/39'25''W [Cross Sound].
                    (2) 56/09'40''N, 134/40'00''W and 55/49'15''N, 
                134/17'40''W [Chatham Strait].
                    (3) 55/49'15''N, 134/17'40''W and 55/50'30''N, 
                133/54'15''W [Sumner Strait].
                    (4) 54/41'30''N, 132/01'00''W and 54/51''30''N, 
                131/20'45''W [Clarence Strait].
                    (5) 54/51'30''N, 131/20'45''W and 54/46'15''N, 
                130/52'00''W [Revillagigedo Channel].

    The portion of each such geodesic situated beyond three nautical 
miles from the baseline from which the breadth of the territorial sea is 
measured forms the outer limit of the waters of the Alexander 
Archipelago in those five locations.

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

                      TITLE XV--LIFE ACT AMENDMENTS

SEC. 1501. SHORT TITLE.

    This title may be cited as the ``LIFE Act Amendments of 2000''.

SEC. 1502. SUBSTITUTION OF ALTERNATIVE ADJUSTMENT PROVISION.

    (a) Extended Application of Section 245(i).--
            (1) In general.--Paragraph (1) of section 245(i) of the 
        Immigration and Nationality Act (8 U.S.C. 1255(i)) is amended--
                    (A) in subparagraph (A), by striking ``and'' at the 
                end;
                    (B) in subparagraph (B)(i), by striking ``January 
                14, 1998'' and inserting ``April 30, 2001'';
                    (C) in subparagraph (B), by adding ``and'' at the 
                end; and
                    (D) by inserting after subparagraph (B) the 
                following new subparagraph:
            ``(C) who, in the case of a beneficiary of a petition for 
        classification, or an application for labor certification, 
        described in subparagraph (B) that was filed after January 14, 
        1998, is physically present in the United States on the date of 
        the enactment of the LIFE Act Amendments of 2000;''.
            (2) Modification in use of funds.--Paragraph (3)(B) of such 
        section is amended by inserting before the period the following: 
        ``, except that in the case of fees attributable to applications 
        for a beneficiary with respect to whom a petition for 
        classification, or an application for labor certification, 
        described in paragraph (1)(B) was filed after January 14, 1998, 
        one-half of such remaining portion shall be deposited by the 
        Attorney General into the Immigration Examinations Fee Account 
        established under section 286(m)''.

    (b) Conforming Amendments.--
            (1) Subsection (m) of section 245 of the Immigration and 
        Nationality Act, as added by section 1102(c) of the Legal 
        Immigration Family Equity Act, is repealed.
            (2) Section 245 of the Immigration and Nationality Act, as 
        amended by section 1102(d)(2) of the Legal Immigration Family 
        Equity Act, is amended by striking ``or (m)'' each place it 
        appears.

SEC. 1503. MODIFICATION OF SECTION 1104 ADJUSTMENT PROVISIONS.

    (a) Inclusion of Additional Class.--Section 1104(b) of the Legal 
Immigration Family Equity Act is amended--
            (1) in paragraph (1), by striking ``or'' at the end;
            (2) in paragraph (2), by striking the period at the end and 
        inserting ``; or''; and
            (3) by adding at the end the following new paragraph:
            ``(3) Zambrano v. INS, vacated sub nom. Immigration and 
        Naturalization Service v. Zambrano, 509 U.S. 918 (1993).''.

    (b) Conforming Application of Consent Provision.--Section 1104(c) of 
the Legal Immigration Family Equity Act is amended by adding at the end 
the following new paragraph:
            ``(10) Conforming application of consent provision.--In 
        addition to the waivers provided in subsection (d)(2) of such 
        section 245A of the Immigration and Nationality Act, the 
        Attorney General may grant the alien a waiver of the grounds of 
        inadmissibility under subparagraphs (A) and (C)

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

        of section 212(a)(9) of such Act (8 U.S.C. 1182(a)(9)). In 
        granting such waivers, the Attorney General shall use standards 
        used in granting consent under subparagraphs (A)(iii) and 
        (C)(ii) of such section.''.

    (c) Inapplicability of Removal Order Reinstatement.--Section 1104 of 
such Act is further amended--
            (1) by redesignating subsection (g) as subsection (h); and
            (2) by inserting after subsection (f ) the following new 
        subsection:

    ``(g) Inapplicability of Removal Order Reinstatement.--Section 
241(a)(5) of the Immigration and Nationality Act shall not apply with 
respect to an alien who is applying for adjustment of status under this 
section.''.

SEC. 1504. APPLICATION OF FAMILY UNITY PROVISIONS TO SPOUSES AND 
            UNMARRIED CHILDREN OF CERTAIN LIFE ACT BENEFICIARIES.

    (a) Immigration Benefits.--Except as provided in subsection (d), in 
the case of an eligible spouse or child (as described in subsection 
(b)), the Attorney General--
            (1) shall not remove the alien on a ground specified in 
        paragraph (1)(A), (1)(B), (1)(C), or (3)(A) of section 237(a) of 
        the Immigration and Nationality Act (8 U.S.C. 1227(a)), other 
        than so much of paragraph (1)(A) of such section as relates to a 
        ground
of inadmissibility described in paragraph (2) or (3) of section 212(a) 
of such Act (8 U.S.C. 1182(a)); and
            (2) shall authorize the alien to engage in employment in the 
        United States during the period of time in which protection is 
        provided under paragraph (1) and shall provide the alien with an 
        ``employment authorized'' endorsement or other appropriate 
        document signifying authorization of employment.

    (b) Eligible Spouses and Children.--For purposes of this section, 
the term ``eligible spouse or child'' means an alien who is the spouse 
or unmarried child of an alien described in section 1104(b) of the Legal 
Immigration Family Equity Act if the spouse or child--
            (1) entered the United States before December 1, 1988; and
            (2) resided in the United States on such date.

    (c) Process for Relief for Eligible Spouses and Children Outside the 
United States.--If an alien has obtained lawful permanent resident 
status under section 1104 of the Legal Immigration Family Equity Act and 
the alien has an eligible spouse or child who is no longer physically 
present in the United States, the Attorney General shall establish a 
process under which the eligible spouse or child may be paroled into the 
United States in order to obtain the benefits of subsection (a) unless 
the Attorney General finds that the spouse or child would be 
inadmissible or deportable on any ground, other than a ground for which 
the alien would not be subject to removal under subsection (a)(1). An 
alien so paroled shall not be treated as paroled into the United States 
for purposes of section 201(c)(4) of the Immigration and Nationality Act 
(8 U.S.C. 1151(c)(4)).
    (d) Exception.--An alien is not eligible for the benefits of this 
section if the Attorney General finds that--
            (1) the alien has been convicted of a felony or three or 
        more misdemeanors in the United States; or

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

            (2) the alien is described in section 241(b)(3)(B) of the 
        Immigration and Nationality Act (8 U.S.C. 1231(b)(3)(B)).

    (e) Application of Definitions.--Except as otherwise specifically 
provided in this section, the definitions contained in the Immigration 
and Nationality Act shall apply in the administration of this section.

SEC. 1505. MISCELLANEOUS AMENDMENTS TO VARIOUS ADJUSTMENT AND RELIEF 
            ACTS.

    (a) Nicaraguan Adjustment and Central American Relief Act.--
            (1) In general.--Section 202(a) of the Nicaraguan Adjustment 
        and Central American Relief Act is amended--
                    (A) by redesignating paragraph (2) as paragraph (3); 
                and
                    (B) by inserting after paragraph (1) the following 
                new paragraph:
            ``(2) Rules in applying certain provisions.--In the case of 
        an alien described in subsection (b) or (d) who is applying for 
        adjustment of status under this section--
                    ``(A) the provisions of section 241(a)(5) of the 
                Immigration and Nationality Act shall not apply; and
                    ``(B) the Attorney General may grant the alien a 
                waiver on the grounds of inadmissibility under 
                subparagraphs (A) and (C) of section 212(a)(9) of such 
                Act.
        In granting waivers under subparagraph (B), the Attorney General 
        shall use standards used in granting consent under subparagraphs 
        (A)(iii) and (C)(ii) of such section 212(a)(9).''.
            (2) Permitting motion to reopen.--Notwithstanding any time 
        and number limitations imposed by law on motions to reopen 
        exclusion, removal, or deportation proceedings (except 
        limitations premised on an alien's conviction of an aggravated 
        felony (as defined by section 101(a) of the Immigration and 
        Nationality Act)), a national of Cuba or Nicaragua who has 
        become eligible for adjustment of status under the Nicaraguan 
        Adjustment and Central American Relief Act as a result of the 
        amendments made by paragraph (1), may file one motion to reopen 
        exclusion, deportation, or removal proceedings to apply for such 
        adjustment under that Act. The scope of any proceeding reopened 
        on this basis shall be limited to a determination of the alien's 
        eligibility for adjustment of status under that Act. All such 
        motions shall be filed within 180 days of the date of the 
        enactment of this Act.

    (b) Haitian Refugee Immigration Fairness Act of 1998.--
            (1) Inapplicability of certain provisions.--Section 902(a) 
        of the Haitian Refugee Immigration Fairness Act of 1998 is 
        amended--
                    (A) by redesignating paragraph (2) as paragraph (3); 
                and
                    (B) by inserting after paragraph (1) the following 
                new paragraph:
            ``(2) Inapplicability of certain provisions.--In the case of 
        an alien described in subsection (b) or (d) who is applying for 
        adjustment of status under this section--
                    ``(A) the provisions of section 241(a)(5) of the 
                Immigration and Nationality Act shall not apply; and

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

                    ``(B) the Attorney General may grant the alien a 
                waiver on the grounds of inadmissibility under 
                subparagraphs (A) and (C) of section 212(a)(9) of such 
                Act.
        In granting waivers under subparagraph (B), the Attorney General 
        shall use standards used in granting consent under subparagraphs 
        (A)(iii) and (C)(ii) of such section 212(a)(9).''.
            (2) Permitting motion To reopen.--Notwithstanding any time 
        and number limitations imposed by law on motions to reopen 
        exclusion, removal, or deportation proceedings (except 
        limitations premised on an alien's conviction of an aggravated 
        felony (as defined by section 101(a) of the Immigration and 
        Nationality Act)), a national of Haiti who has become eligible 
        for adjustment of status under the Haitian Refugee Immigration 
        Fairness Act of 1998 as a result of the amendments made by 
        paragraph (1), may file one motion to reopen exclusion, 
        deportation, or removal proceedings to apply for such adjustment 
        under that Act. The scope of any proceeding reopened on this 
        basis shall be limited to a determination of the alien's 
        eligibility for adjustment of status under that Act. All such 
        motions shall be filed within 180 days of the date of the 
        enactment of this Act.

    (c) Section 309 of IIRIRA.--Section 309 of the Illegal Immigration 
Reform and Immigrant Responsibility Act of 1996 is amended by adding at 
the end the following new subsection:
    ``(h) Relief and Motions to Reopen.--
            ``(1) Relief.--An alien described in subsection (c)(5)(C)(i) 
        who is otherwise eligible for--
                    ``(A) suspension of deportation pursuant to section 
                244(a) of the Immigration and Nationality Act, as in 
                effect before the title III-A effective date; or
                    ``(B) cancellation of removal, pursuant to section 
                240A(b) of the Immigration and Nationality Act and 
                subsection (f ) of this section;
        shall not be barred from applying for such relief by operation 
        of section 241(a)(5) of the Immigration and Nationality Act, as 
        in effect after the title III-A effective date.
            ``(2) Additional motion to reopen permitted.--
        Notwithstanding any limitation imposed by law on motions to 
        reopen removal or deportation proceedings (except limitations 
        premised on an alien's conviction of an aggravated felony (as 
        defined by section 101(a) of the Immigration and Nationality 
        Act)), any alien who is described in subsection (c)(5)(C)(i) and 
        who has become eligible for cancellation of removal or 
        suspension of deportation as a result of the enactment of 
        paragraph (1) may file one motion to reopen removal or 
        deportation proceedings in order to apply for cancellation of 
        removal or suspension of deportation. The scope of any 
        proceeding reopened on this basis shall be limited to a 
        determination of the alien's eligibility for cancellation of 
        removal or suspension of deportation. The Attorney General shall 
        designate a specific time period in which all such motions to 
        reopen are required to be filed. The period shall begin not 
        later than 60 days after the date of the enactment of this 
        subsection and shall extend for a period not to exceed 240 days.
            ``(3) Construction.--Nothing in this subsection shall 
        preclude an alien from filing a motion to reopen pursuant to 
        section 240(b)(5)(C)(ii) of the Immigration and Nationality Act,

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

        or section 242B(c)(3)(B) of such Act (as in effect before the 
        title III-A effective date).''.

SEC. 1506. EFFECTIVE DATE.

    This title shall take effect as if included in the enactment of the 
Legal Immigration Family Equity Act.

     TITLE XVI--IMPROVING LITERACY THROUGH FAMILY LITERACY PROJECTS

SEC. 1601. SHORT TITLE.

    This title may be cited as the ``Literacy Involves Families Together 
Act''.

SEC. 1602. AUTHORIZATION OF APPROPRIATIONS.

    Section 1002(b) of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 6302(b)) is amended by striking ``$118,000,000 for 
fiscal year 1995'' and inserting ``$250,000,000 for fiscal year 2001''.

SEC. 1603. IMPROVING BASIC PROGRAMS OPERATED BY LOCAL EDUCATIONAL 
            AGENCIES.

    Section 1111(c) of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 6311(c)) is amended--
            (1) in paragraph (5), by striking ``and'' at the end;
            (2) in paragraph (6), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(7) the State educational agency will encourage local 
        educational agencies and individual schools participating in a 
        program assisted under this part to offer family literacy 
        services (using funds under this part), if the agency or school 
        determines that a substantial number of students served under 
        this part by the agency or school have parents who do not have a 
        high school diploma or its recognized equivalent or who have low 
        levels of literacy.''.

SEC. 1604. EVEN START FAMILY LITERACY PROGRAMS.

    (a) Part Heading.--The part heading for part B of title I of the 
Elementary and Secondary Education Act of 1965 (20 U.S.C. 6361 et seq.) 
is amended to read as follows:

  ``PART B--WILLIAM F. GOODLING EVEN START FAMILY LITERACY PROGRAMS''.

    (b) Statement of Purpose.--Section 1201 of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 6361) is amended--
            (1) in paragraph (1), by inserting ``high quality'' after 
        ``build on''; and
            (2) by amending paragraph (2) to read as follows:
            ``(2) promote the academic achievement of children and 
        adults;'';
            (3) by striking the period at the end of paragraph (3) and 
        inserting ``; and''; and
            (4) by adding at the end the following:
            ``(4) use instructional programs based on scientifically 
        based reading research (as defined in section 2252) and the 
        prevention

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

        of reading difficulties for children and adults, to the extent 
        such research is available.''.

    (c) Program Authorized.--
            (1) Reservation for migrant programs, outlying areas, and 
        indian tribes.--Section 1202(a) of the Elementary and Secondary 
        Education Act of 1965 (20 U.S.C. 6362(a)) is amended--
                    (A) in paragraph (1), in the matter preceding 
                subparagraph (A), by inserting ``(or, if such 
                appropriated amount exceeds $200,000,000, 6 percent of 
                such amount)'' after ``1002(b)'';
                    (B) in paragraph (2), by striking ``If the amount of 
                funds made available under this subsection exceeds 
                $4,600,000,'' and inserting ``After the date of the 
                enactment of the Literacy Involves Families Together 
                Act,''; and
                    (C) by adding at the end the following:
            ``(3) Coordination of programs for american indians.--The 
        Secretary shall ensure that programs under paragraph (1)(C) are 
        coordinated with family literacy programs operated by the Bureau 
        of Indian Affairs in order to avoid duplication and to encourage 
        the dissemination of information on high quality family literacy 
        programs serving American Indians.''.
            (2) Reservation for federal activities.--Section 1202(b) of 
        the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        6362(b)) is amended to read as follows:

    ``(b) Reservation for Federal Activities.--
            ``(1) Evaluation, technical assistance, program improvement, 
        and replication activities.--From amounts appropriated under 
        section 1002(b), the Secretary may reserve not more than 3 
        percent of such amounts for purposes of--
                    ``(A) carrying out the evaluation required by 
                section 1209; and
                    ``(B) providing, through grants or contracts with 
                eligible organizations, technical assistance, program 
                improvement, and replication activities.
            ``(2) Research.--In the case of fiscal years 2001 through 
        2004, if the amount appropriated under section 1002(b) for any 
        of such years--
                    ``(A) is equal to or less than the amounts 
                appropriated for the preceding fiscal year, the 
                Secretary may reserve from such amount only the amount 
                necessary to continue multiyear activities carried out 
                pursuant to section 1211(b) that began during or prior 
                to the preceding fiscal year; or
                    ``(B) exceeds the amount appropriated for the 
                preceding fiscal year, the Secretary shall reserve from 
                such excess amount $2,000,000 or 50 percent, whichever 
                is less, to carry out section 1211(b).''.

    (d) Reservation for Grants.--Section 1202(c)(1) of the Elementary 
and Secondary Education Act of 1965 (20 U.S.C. 6362(c)(1)) is amended--
            (1) by striking ``From funds reserved under section 
        2260(b)(3), the Secretary shall award grants,'' and inserting 
        ``For any fiscal year for which at least one State applies and 
        submits an application that meets the requirements and goals of 
        this subsection and for which the amount appropriated under 
        section 1002(b) exceeds the amount appropriated under such

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

        section for the preceding fiscal year, the Secretary shall 
        reserve, from the amount of such excess remaining after the 
        application of subsection (b)(2), the amount of such remainder 
        or $1,000,000, whichever is less, to award grants,''; and
            (2) by adding at the end ``No State may receive more than 
        one grant under this subsection.''.

    (e) Allocations.--Section 1202(d)(2) of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 6362(d)(2)) is amended by striking 
``that section'' and inserting ``that part''.
    (f ) State Level Activities.--Section 1203(a) of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 6363(a)) is amended--
            (1) by striking ``5 percent'' and inserting ``a total of 6 
        percent''; and
            (2) in paragraph (1), by inserting before the semicolon the 
        following: ``, not to exceed half of such total''.

    (g) Subgrants for Local Programs.--Section 1203(b)(2) of the 
Elementary and Secondary Education Act of 1965 (20 U.S.C. 6363(b)(2)) is 
amended to read as follows:
            ``(2) Minimum subgrant amounts.--
                    ``(A) In general.--Except as provided in 
                subparagraphs (B) and (C), no State shall award a 
                subgrant under paragraph (1) in an amount less than 
                $75,000.
                    ``(B) Subgrantees in ninth and succeeding years.--No 
                State shall award a subgrant under paragraph (1) in an 
                amount less than $52,500 to an eligible entity for a 
                fiscal year to carry out an Even Start program that is 
                receiving assistance under this part or its predecessor 
                authority for the ninth (or any subsequent) fiscal year.
                    ``(C) Exception for single subgrant.--A State may 
                award one subgrant in each fiscal year of sufficient 
                size, scope, and quality to be effective in an amount 
                less than $75,000 if, after awarding subgrants under 
                paragraph (1) for such fiscal year in accordance with 
                subparagraphs (A) and (B), less than $75,000 is 
                available to the State to award such subgrants.''.

    (h) Uses of Funds.--Section 1204 of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 6364) is amended--
            (1) in subsection (a), by striking ``family-centered 
        education programs'' and inserting ``family literacy services''; 
        and
            (2) by adding at the end the following:

    ``(c) Use of Funds for Family Literacy Services.--
            ``(1) In general.--From funds reserved under section 
        1203(a), a State may use a portion of such funds to assist 
        eligible entities receiving a subgrant under section 1203(b) in 
        improving the quality of family literacy services provided under 
        Even Start programs under this part, except that in no case may 
        a State's use of funds for this purpose for a fiscal year result 
        in a decrease from the level of activities and services provided 
        to program participants in the preceding year.
            ``(2) Priority.--In carrying out paragraph (1), a State 
        shall give priority to programs that were of low quality, as 
        evaluated based on the indicators of program quality developed 
        by the State under section 1210.
            ``(3) Technical assistance to help local programs raise 
        additional funds.--In carrying out paragraph (1), a State may 
        use the funds referred to in such paragraph to provide

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

        technical assistance to help local programs of demonstrated 
        effectiveness to access and leverage additional funds for the 
        purpose of expanding services and reducing waiting lists, 
        including requesting and applying for non-Federal resources.
            ``(4) Technical assistance and training.--Assistance under 
        paragraph (1) shall be in the form of technical assistance and 
        training, provided by a State through a grant, contract, or 
        cooperative agreement with an entity that has experience in 
        offering high quality training and technical assistance to 
        family literacy providers.''.

    (i) Program Elements.--Section 1205 of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 6365) is amended--
            (1) by redesignating paragraphs (9) and (10) as paragraphs 
        (14) and (15), respectively;
            (2) by redesignating paragraphs (5) through (8) as 
        paragraphs (6) through (9), respectively;
            (3) by inserting after paragraph (4) the following:
            ``(5) with respect to the qualifications of staff the cost 
        of whose salaries are paid, in whole or in part, with Federal 
        funds provided under this part, ensure that--
                    ``(A) not later than 4 years after the date of the 
                enactment of the Literacy Involves Families Together 
                Act--
                          ``(i) a majority of the individuals providing 
                      academic instruction--
                                    ``(I) shall have obtained an 
                                associate's, bachelor's, or graduate 
                                degree in a field related to early 
                                childhood education, elementary or 
                                secondary school education, or adult 
                                education; and
                                    ``(II) if applicable, shall meet 
                                qualifications established by the State 
                                for early childhood education, 
                                elementary or secondary school 
                                education, or adult education provided 
                                as part of an Even Start program or 
                                another family literacy program;
                          ``(ii) the individual responsible for 
                      administration of family literacy services under 
                      this part has received training in the operation 
                      of a family literacy program; and
                          ``(iii) paraprofessionals who provide support 
                      for academic instruction have a high school 
                      diploma or its recognized equivalent; and
                    ``(B) beginning on the date of the enactment of the 
                Literacy Involves Families Together Act, all new 
                personnel hired to provide academic instruction--
                          ``(i) have obtained an associate's, 
                      bachelor's, or graduate degree in a field related 
                      to early childhood education, elementary or 
                      secondary school education, or adult education; 
                      and
                          ``(ii) if applicable, meet qualifications 
                      established by the State for early childhood 
                      education, elementary or secondary school 
                      education, or adult education provided as part of 
                      an Even Start program or another family literacy 
                      program;'';
            (4) in paragraph (8) (as so redesignated by paragraph (2), 
        by striking ``or enrichment'' and inserting ``and enrichment''.
            (5) by inserting after paragraph (9) (as so redesignated by 
        paragraph (2)) the following:

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

            ``(10) use instructional programs based on scientifically 
        based reading research (as defined in section 2252) for children 
        and adults, to the extent such research is available;
            ``(11) encourage participating families to attend regularly 
        and to remain in the program a sufficient time to meet their 
        program goals;
            ``(12) include reading readiness activities for preschool 
        children based on scientifically based reading research (as 
        defined in section 2252), to the extent available, to ensure 
        children enter school ready to learn to read;
            ``(13) if applicable, promote the continuity of family 
        literacy to ensure that individuals retain and improve their 
        educational outcomes''; and
            (5) in paragraph (14) (as so redesignated), by striking 
        ``program.'' and inserting ``program to be used for program 
        improvement.''.

    ( j) Eligible Participants.--Section 1206 of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 6366) is amended--
            (1) in subsection (a)(1)(B) by striking ``part;'' and 
        inserting ``part, or who are attending secondary school;''; and
            (2) in subsection (b), by adding at the end the following:
            ``(3) Children 8 years of age or older.--If an Even Start 
        program assisted under this part collaborates with a program 
        under part A, and funds received under such part A program 
        contribute to paying the cost of providing programs under this 
        part to children 8 years of age or older, the Even Start 
        program, notwithstanding subsection (a)(2), may permit the 
        participation of children 8 years of age or older if the focus 
        of the program continues to remain on families with young 
        children.''.

    (k) Plan.--Section 1207(c) of the Elementary and Secondary Education 
Act of 1965 (20 U.S.C. 6367(c)) is amended--
            (1) in paragraph (1)--
                    (A) in the matter preceding subparagraph (A), by 
                inserting ``and continuous improvement'' after ``plan of 
                operation'';
                    (B) in subparagraph (A), by striking ``goals;'' and 
                inserting ``objectives, strategies to meet such 
                objectives, and how they are consistent with the program 
                indicators established by the State;'';
                    (C) in subparagraph (E), by striking ``and'' at the 
                end;
                    (D) in subparagraph (F)--
                          (i) by striking ``Act, the Goals 2000: Educate 
                      America Act,'' and inserting ``Act''; and
                          (ii) by striking the period at the end and 
                      inserting ``; and''; and
                    (E) by adding at the end the following:
                    ``(G) a description of how the plan provides for 
                rigorous and objective evaluation of progress toward the 
                program objectives described in subparagraph (A) and for 
                continuing use of evaluation data for program 
                improvement.''; and
            (2) in paragraph (2), in the matter preceding subparagraph 
        (A), by striking ``(1)(A)'' and inserting ``(1)''.

    (l) Award of Subgrants.--Section 1208 of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 6368) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)(B)--

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

                          (i) by striking ``including a high'' and 
                      inserting ``such as a high''; and
                          (ii) by striking ``part A;'' and inserting 
                      ``part A, a high number or percentage of parents 
                      who have been victims of domestic violence, or a 
                      high number or percentage of parents who are 
                      receiving assistance under a State program funded 
                      under part A of title IV of the Social Security 
                      Act (42 U.S.C. 601 et seq.);'';
                    (B) in paragraph (1)(F), by striking ``Federal'' and 
                inserting ``non-Federal'';
                    (C) in paragraph (1)(H), by inserting ``family 
                literacy projects and other'' before ``local educational 
                agencies''; and
                    (D) in paragraph (3), in the matter preceding 
                subparagraph (A), by striking ``one or more of the 
                following individuals:'' and inserting ``one individual 
                with expertise in family literacy programs, and may 
                include other individuals, such as one or more of the 
                following:''; and
            (2) in subsection (b)--
                    (A) by striking paragraph (3) and inserting the 
                following:
            ``(3) Continuing eligibility.--In awarding subgrant funds to 
        continue a program under this part after the first year, the 
        State educational agency shall review the progress of each 
        eligible entity in meeting the objectives of the program 
        referred to in section 1207(c)(1)(A) and shall evaluate the 
        program based on the indicators of program quality developed by 
        the State under section 1210.''; and
                    (B) by amending paragraph (5)(B) to read as follows:
            ``(B) The Federal share of any subgrant renewed under 
        subparagraph (A) shall be limited in accordance with section 
        1204(b).''.

    (m) Research.--Section 1211 of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 6369b) is amended--
            (1) in subsection (b), by striking ``subsection (a)'' and 
        inserting ``subsections (a) and (b)'';
            (2) by redesignating subsection (b) as subsection (c); and
            (3) by inserting after subsection (a) the following:

    ``(b) Scientifically Based Research on Family Literacy.--
            ``(1) In general.--From amounts reserved under section 
        1202(b)(2), the National Institute for Literacy, in consultation 
        with the Secretary, shall carry out research that--
                    ``(A) is scientifically based reading research (as 
                defined in section 2252); and
                    ``(B) determines--
                          ``(i) the most effective ways of improving the 
                      literacy skills of adults with reading 
                      difficulties; and
                          ``(ii) how family literacy services can best 
                      provide parents with the knowledge and skills they 
                      need to support their children's literacy 
                      development.
            ``(2) Use of expert entity.--The National Institute for 
        Literacy, in consultation with the Secretary, shall carry out 
        the research under paragraph (1) through an entity, including a 
        Federal agency, that has expertise in carrying out longitudinal 
        studies of the development of literacy skills in children and 
        has developed effective interventions to help children with 
        reading difficulties.''.

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

    (n) Indicators of Program Quality.--Not later than 30 days after the 
date of the enactment of this Act, the Secretary shall notify each State 
that receives funds under part B of title I of the Elementary and 
Secondary Education Act of 1965 that to be eligible to receive fiscal 
year 2001 funds under part B, such State shall submit to the Secretary, 
not later than June 30, 2001, its indicators of program quality as 
described in section 1210 of the Elementary and Secondary Education Act 
of 1965. A State that fails to comply with this subsection shall be 
ineligible to receive funds under such part in subsequent years unless 
such State submits to the Secretary, not later than June 30 of the year 
in which funds are requested, its indicators of program quality as 
described in section 1210 of the Elementary and Secondary Education Act 
of 1965.

SEC. 1605. EDUCATION OF MIGRATORY CHILDREN.

    Section 1304(b) of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 6394(b)) is amended--
            (1) in paragraph (5), by striking ``and'' at the end;
            (2) in paragraph (6), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(7) a description of how the State will encourage programs 
        and projects assisted under this part to offer family literacy 
        services if the program or project serves a substantial number 
        of migratory children who have parents who do not have a high 
        school diploma or its recognized equivalent or who have low 
        levels of literacy.''.

SEC. 1606. DEFINITIONS.

    (a) In General.--Section 14101 of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 8801) is amended--
            (1) by redesignating paragraphs (15) through (29) as 
        paragraphs (16) through (30), respectively; and
            (2) by inserting after paragraph (14) the following:
            ``(15) Family literacy services.--The term `family literacy 
        services' means services provided to participants on a voluntary 
        basis that are of sufficient intensity in terms of hours, and of 
        sufficient duration, to make sustainable changes in a family, 
        and that integrate all of the following activities:
                    ``(A) Interactive literacy activities between 
                parents and their children.
                    ``(B) Training for parents regarding how to be the 
                primary teacher for their children and full partners in 
                the education of their children.
                    ``(C) Parent literacy training that leads to 
                economic self-sufficiency.
                    ``(D) An age-appropriate education to prepare 
                children for success in school and life experiences.''.

    (b) Conforming Amendments.--
            (1) Even start family literacy programs.--Section 1202(e) of 
        the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        6362(e)) is amended--
                    (A) by striking paragraph (3); and
                    (B) by redesignating paragraphs (4) and (5) as 
                paragraphs (3) and (4), respectively.

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

            (2) Reading and literacy grants.--(A) Section 2252 of the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 6661a) 
        is amended--
                    (i) by striking paragraph (2); and
                    (ii) by redesignating paragraphs (3) through (5) as 
                paragraphs (2) through (4), respectively.
            (B) Section 2260 of the Elementary and Secondary Education 
        Act of 1965 (20 U.S.C. 6661i) is amendmed--
                    (i) in subsection (a), by striking ``and section 
                1202(c)'' each place it appears, and
                    (ii) in subsection (b)--
                          (I) in paragraph (1), by inserting ``and'' 
                      after the semicolon;
                          (II) in paragraph (2), by striking ``; and '' 
                      and inserting a period; and
                          (III) by striking paragraph (3).

SEC. 1607. INDIAN EDUCATION.

    (a) Early Childhood Development Program.--Section 1143 of the 
Education Amendments of 1978 (25 U.S.C. 2023) is amended--
            (1) in subsection (b)(1), in the matter preceding 
        subparagraph (A)--
                    (A) by striking ``(f )'' and inserting ``(g)''; and
                    (B) by striking ``(e))'' and inserting ``(f ))'';
            (2) in subsection (d)(1)--
                    (A) by redesignating subparagraphs (D) and (E) as 
                subparagraphs (E) and (F), respectively; and
                    (B) by inserting after subparagraph (C) the 
                following:
                    ``(D) family literacy services,'';
            (3) in subsection (e), by striking ``(f ),'' and inserting 
        ``(g),'';
            (4) by redesignating subsections (e) and (f ) as subsections 
        (f ) and (g), respectively; and
            (5) by inserting after subsection (d) the following:

    ``(e) Family literacy programs operated under this section, and 
other family literacy programs operated by the Bureau of Indian Affairs, 
shall be coordinated with family literacy programs for American Indian 
children under part B of title I of the Elementary and Secondary 
Education Act of 1965 in order to avoid duplication and to encourage the 
dissemination of information on quality family literacy programs serving 
American Indians.''.
    (b) Definitions.--Section 1146 of the Education Amendments of 1978 
(25 U.S.C. 2026) is amended--
            (1) by redesignating paragraphs (7) through (14) as 
        paragraphs (8) through (15), respectively; and
            (2) by inserting after paragraph (6) the following:
            ``(7) the term `family literacy services' has the meaning 
        given such term in section 14101 of the Elementary and Secondary 
        Education Act of 1965 (20 U.S.C. 8801);''.

               TITLE XVII--CHILDREN'S INTERNET PROTECTION

SEC. 1701. SHORT TITLE.

    This title may be cited as the ``Children's Internet Protection 
Act''.

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

SEC. 1702. DISCLAIMERS.

    (a) Disclaimer Regarding Content.--Nothing in this title or the 
amendments made by this title shall be construed to prohibit a local 
educational agency, elementary or secondary school, or library from 
blocking access on the Internet on computers owned or operated by that 
agency, school, or library to any content other than content covered by 
this title or the amendments made by this title.
    (b) Disclaimer Regarding Privacy.--Nothing in this title or the 
amendments made by this title shall be construed to require the tracking 
of Internet use by any identifiable minor or adult user.

SEC. 1703. STUDY OF TECHNOLOGY PROTECTION MEASURES.

    (a) In General.--Not later than 18 months after the date of the 
enactment of this Act, the National Telecommunications and Information 
Administration shall initiate a notice and comment proceeding for 
purposes of--
            (1) evaluating whether or not currently available technology 
        protection measures, including commercial Internet blocking and 
        filtering software, adequately addresses the needs of 
        educational institutions;
            (2) making recommendations on how to foster the development 
        of measures that meet such needs; and
            (3) evaluating the development and effectiveness of local 
        Internet safety policies that are currently in operation after 
        community input.

    (b) Definitions.--In this section:
            (1) Technology protection measure.--The term ``technology 
        protection measure'' means a specific technology that blocks or 
        filters Internet access to visual depictions that are--
                    (A) obscene, as that term is defined in section 1460 
                of title 18, United States Code;
                    (B) child pornography, as that term is defined in 
                section 2256 of title 18, United States Code; or
                    (C) harmful to minors.
            (2) Harmful to minors.--The term ``harmful to minors'' means 
        any picture, image, graphic image file, or other visual 
        depiction that--
                    (A) taken as a whole and with respect to minors, 
                appeals to a prurient interest in nudity, sex, or 
                excretion;
                    (B) depicts, describes, or represents, in a patently 
                offensive way with respect to what is suitable for 
                minors, an actual or simulated sexual act or sexual 
                contact, actual or simulated normal or perverted sexual 
                acts, or a lewd exhibition of the genitals; and
                    (C) taken as a whole, lacks serious literary, 
                artistic, political, or scientific value as to minors.
            (3) Sexual act; sexual contact.--The terms ``sexual act'' 
        and ``sexual contact'' have the meanings given such terms in 
        section 2246 of title 18, United States Code.

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

    Subtitle A--Federal Funding for Educational Institution Computers

SEC. 1711. LIMITATION ON AVAILABILITY OF CERTAIN FUNDS FOR SCHOOLS.

    Title III of the Elementary and Secondary Education Act of 1965 (20 
U.S.C. 6801 et seq.) is amended by adding at the end the following:

    ``PART F--LIMITATION ON AVAILABILITY OF CERTAIN FUNDS FOR SCHOOLS

``SEC. 3601. LIMITATION ON AVAILABILITY OF CERTAIN FUNDS FOR SCHOOLS.

    ``(a) Internet Safety.--
            ``(1) In general.--No funds made available under this title 
        to a local educational agency for an elementary or secondary 
        school that does not receive services at discount rates under 
        section 254(h)(5) of the Communications Act of 1934, as added by 
        section 1721 of Children's Internet Protection Act, may be used 
        to purchase computers used to access the Internet, or to pay for 
        direct costs associated with accessing the Internet, for such 
        school unless the school, school board, local educational 
        agency, or other authority with responsibility for 
        administration of such school both--
                    ``(A)(i) has in place a policy of Internet safety 
                for minors that includes the operation of a technology 
                protection measure with respect to any of its computers 
                with Internet access that protects against access 
                through such computers to visual depictions that are--
                          ``(I) obscene;
                          ``(II) child pornography; or
                          ``(III) harmful to minors; and
                    ``(ii) is enforcing the operation of such technology 
                protection measure during any use of such computers by 
                minors; and
                    ``(B)(i) has in place a policy of Internet safety 
                that includes the operation of a technology protection 
                measure with respect to any of its computers with 
                Internet access that protects against access through 
                such computers to visual depictions that are--
                          ``(I) obscene; or
                          ``(II) child pornography; and
                    ``(ii) is enforcing the operation of such technology 
                protection measure during any use of such computers.
            ``(2) Timing and applicability of implementation.--
                    ``(A) In general.--The local educational agency with 
                responsibility for a school covered by paragraph (1) 
                shall certify the compliance of such school with the 
                requirements of paragraph (1) as part of the application 
                process for the next program funding year under this Act 
                following the effective date of this section, and for 
                each subsequent program funding year thereafter.
                    ``(B) Process.--

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

                          ``(i) Schools with internet safety policies 
                      and technology protection measures in place.--A 
                      local educational agency with responsibility for a 
                      school covered by paragraph (1) that has in place 
                      an Internet safety policy meeting the requirements 
                      of paragraph (1) shall certify its compliance with 
                      paragraph (1) during each annual program 
                      application cycle under this Act.
                          ``(ii) Schools without internet safety 
                      policies and technology protection measures in 
                      place.--A local educational agency with 
                      responsibility for a school covered by paragraph 
                      (1) that does not have in place an Internet safety 
                      policy meeting the requirements of paragraph (1)--
                                    ``(I) for the first program year 
                                after the effective date of this section 
                                in which the local educational agency is 
                                applying for funds for such school under 
                                this Act, shall certify that it is 
                                undertaking such actions, including any 
                                necessary procurement procedures, to put 
                                in place an Internet safety policy that 
                                meets such requirements; and
                                    ``(II) for the second program year 
                                after the effective date of this section 
                                in which the local educational agency is 
                                applying for funds for such school under 
                                this Act, shall certify that such school 
                                is in compliance with such requirements.
                      Any school covered by paragraph (1) for which the 
                      local educational agency concerned is unable to 
                      certify compliance with such requirements in such 
                      second program year shall be ineligible for all 
                      funding under this title for such second program 
                      year and all subsequent program years until such 
                      time as such school comes into compliance with 
                      such requirements.
                          ``(iii) Waivers.--Any school subject to a 
                      certification under clause (ii)(II) for which the 
                      local educational agency concerned cannot make the 
                      certification otherwise required by that clause 
                      may seek a
waiver of that clause if State or local procurement rules or regulations 
or competitive bidding requirements prevent the making of the 
certification otherwise required by that clause. The local educational 
agency concerned shall notify the Secretary of the applicability of that 
clause to the school. Such notice shall certify that the school will be 
brought into compliance with the requirements in paragraph (1) before 
the start of the third program year after the effective date of this 
section in which the school is applying for funds under this title.
            ``(3) Disabling during certain use.--An administrator, 
        supervisor, or person authorized by the responsible authority 
        under paragraph (1) may disable the technology protection 
        measure concerned to enable access for bona fide research or 
        other lawful purposes.
            ``(4) Noncompliance.--
                    ``(A) Use of general education provisions act 
                remedies.--Whenever the Secretary has reason to believe 
                that

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

                any recipient of funds under this title is failing to 
                comply substantially with the requirements of this 
                subsection, the Secretary may--
                          ``(i) withhold further payments to the 
                      recipient under this title,
                          ``(ii) issue a complaint to compel compliance 
                      of the recipient through a cease and desist order, 
                      or
                          ``(iii) enter into a compliance agreement with 
                      a recipient to bring it into compliance with such 
                      requirements,
                in same manner as the Secretary is authorized to take 
                such actions under sections 455, 456, and 457, 
                respectively, of the General Education Provisions Act 
                (20 U.S.C. 1234d).
                    ``(B) Recovery of funds prohibited.--The actions 
                authorized by subparagraph (A) are the exclusive 
                remedies available with respect to the failure of a 
                school to comply substantially with a provision of this 
                subsection, and the Secretary shall not seek a recovery 
                of funds from the recipient for such failure.
                    ``(C) Recommencement of payments.--Whenever the 
                Secretary determines (whether by certification or other 
                appropriate evidence) that a recipient of funds who is 
                subject to the withholding of payments under 
                subparagraph (A)(i) has cured the failure providing the 
                basis for the withholding of payments, the Secretary 
                shall cease the withholding of payments to the recipient 
                under that subparagraph.
            ``(5) Definitions.--In this section:
                    ``(A) Computer.--The term `computer' includes any 
                hardware, software, or other technology attached or 
                connected to, installed in, or otherwise used in 
                connection with a computer.
                    ``(B) Access to internet.--A computer shall be 
                considered to have access to the Internet if such 
                computer is equipped with a modem or is connected to a 
                computer network which has access to the Internet.
                    ``(C) Acquisition or operation.--A elementary or 
                secondary school shall be considered to have received 
                funds under this title for the acquisition or operation 
                of any computer if such funds are used in any manner, 
                directly or indirectly--
                          ``(i) to purchase, lease, or otherwise acquire 
                      or obtain the use of such computer; or
                          ``(ii) to obtain services, supplies, software, 
                      or other actions or materials to support, or in 
                      connection with, the operation of such computer.
                    ``(D) Minor.--The term `minor' means an individual 
                who has not attained the age of 17.
                    ``(E) Child pornography.--The term `child 
                pornography' has the meaning given such term in section 
                2256 of title 18, United States Code.
                    ``(F) Harmful to minors.--The term `harmful to 
                minors' means any picture, image, graphic image file, or 
                other visual depiction that--
                          ``(i) taken as a whole and with respect to 
                      minors, appeals to a prurient interest in nudity, 
                      sex, or excretion;

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

                          ``(ii) depicts, describes, or represents, in a 
                      patently offensive way with respect to what is 
                      suitable for minors, an actual or simulated sexual 
                      act or sexual contact, actual or simulated normal 
                      or perverted sexual acts, or a lewd exhibition of 
                      the genitals; and
                          ``(iii) taken as a whole, lacks serious 
                      literary, artistic, political, or scientific value 
                      as to minors.
                    ``(G) Obscene.--The term `obscene' has the meaning 
                given such term in section 1460 of title 18, United 
                States Code.
                    ``(H) Sexual act; sexual contact.--The terms `sexual 
                act' and `sexual contact' have the meanings given such 
                terms in section 2246 of title 18, United States Code.

    ``(b) Effective Date.--This section shall take effect 120 days after 
the date of the enactment of the Children's Internet Protection Act.
    ``(c) Separability.--If any provision of this section is held 
invalid, the remainder of this section shall not be affected thereby.''.

SEC. 1712. LIMITATION ON AVAILABILITY OF CERTAIN FUNDS FOR LIBRARIES.

    (a) Amendment.--Section 224 of the Museum and Library Services Act 
(20 U.S.C. 9134(b)) is amended--
            (1) in subsection (b)--
                    (A) by redesignating paragraph (6) as paragraph (7); 
                and
                    (B) by inserting after paragraph (5) the following 
                new paragraph:
            ``(6) provide assurances that the State will comply with 
        subsection (f ); and''; and
            (2) by adding at the end the following new subsection:

    ``(f ) Internet Safety.--
            ``(1) In general.--No funds made available under this Act 
        for a library described in section 213(2)(A) or (B) that does 
        not receive services at discount rates under section 254(h)(6) 
        of the Communications Act of 1934, as added by section 1721 of 
        this Children's Internet Protection Act, may be used to purchase 
        computers used to access the Internet, or to pay for direct 
        costs associated with accessing the Internet, for such library 
        unless--
                    ``(A) such library--
                          ``(i) has in place a policy of Internet safety 
                      for minors that includes the operation of a 
                      technology protection measure with respect to any 
                      of its computers with Internet access that 
                      protects against access through such computers to 
                      visual depictions that are--
                                    ``(I) obscene;
                                    ``(II) child pornography; or
                                    ``(III) harmful to minors; and
                          ``(ii) is enforcing the operation of such 
                      technology protection measure during any use of 
                      such computers by minors; and
                    ``(B) such library--
                          ``(i) has in place a policy of Internet safety 
                      that includes the operation of a technology 
                      protection measure with respect to any of its 
                      computers with Internet

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

                      access that protects against access through such 
                      computers to visual depictions that are--
                                    ``(I) obscene; or
                                    ``(II) child pornography; and
                          ``(ii) is enforcing the operation of such 
                      technology protection measure during any use of 
                      such computers.
            ``(2) Access to other materials.--Nothing in this subsection 
        shall be construed to prohibit a library from limiting Internet 
        access to or otherwise protecting against materials other than 
        those referred to in subclauses (I), (II), and (III) of 
        paragraph (1)(A)(i).
            ``(3) Disabling during certain use.--An administrator, 
        supervisor, or other authority may disable a technology 
        protection measure under paragraph (1) to enable access for bona 
        fide research or other lawful purposes.
            ``(4) Timing and applicability of implementation.--
                    ``(A) In general.--A library covered by paragraph 
                (1) shall certify the compliance of such library with 
                the requirements of paragraph (1) as part of the 
                application process for the next program funding year 
                under this Act following the effective date of this 
                subsection, and for each subsequent program funding year 
                thereafter.
                    ``(B) Process.--
                          ``(i) Libraries with internet safety policies 
                      and technology protection measures in place.--A 
                      library covered by paragraph (1) that has in place 
                      an Internet safety policy meeting the requirements 
                      of paragraph (1) shall certify its compliance with 
                      paragraph (1) during each annual program 
                      application cycle under this Act.
                          ``(ii) Libraries without internet safety 
                      policies and technology protection measures in 
                      place.--A library covered by paragraph (1) that 
                      does not have in place an Internet safety policy 
                      meeting the requirements of paragraph (1)--
                                    ``(I) for the first program year 
                                after the effective date of this 
                                subsection in which the library applies 
                                for funds under this Act, shall certify 
                                that it is undertaking such actions, 
                                including any necessary procurement 
                                procedures, to put in place an Internet 
                                safety policy that meets such 
                                requirements; and
                                    ``(II) for the second program year 
                                after the effective date of this 
                                subsection in which the library applies 
                                for funds under this Act, shall certify 
                                that such library is in compliance with 
                                such requirements.

                      Any library covered by paragraph (1) that is 
                      unable to certify compliance with such 
                      requirements in such second program year shall be 
                      ineligible for all funding under this Act for such 
                      second program year and all
subsequent program years until such time as such library comes into 
compliance with such requirements.
                          ``(iii) Waivers.--Any library subject to a 
                      certification under clause (ii)(II) that cannot 
                      make the certification otherwise required by that 
                      clause may seek a waiver of that clause if State 
                      or local procurement

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

                      rules or regulations or competitive bidding 
                      requirements prevent the making of the 
                      certification otherwise required by that clause. 
                      The library shall notify the Director of the 
                      Institute of Museum and Library Services of the 
                      applicability of that clause to the library. Such 
                      notice shall certify that the library will comply 
                      with the requirements in paragraph (1) before the 
                      start of the third program year after the 
                      effective date of this subsection for which the 
                      library is applying for funds under this Act.
            ``(5) Noncompliance.--
                    ``(A) Use of general education provisions act 
                remedies.--Whenever the Director of the Institute of 
                Museum and Library Services has reason to believe that 
                any recipient of funds this Act is failing to comply 
                substantially with the requirements of this subsection, 
                the Director may--
                          ``(i) withhold further payments to the 
                      recipient under this Act,
                          ``(ii) issue a complaint to compel compliance 
                      of the recipient through a cease and desist order, 
                      or
                          ``(iii) enter into a compliance agreement with 
                      a recipient to bring it into compliance with such 
                      requirements.
                    ``(B) Recovery of funds prohibited.--The actions 
                authorized by subparagraph (A) are the exclusive 
                remedies available with respect to the failure of a 
                library to comply substantially with a provision of this 
                subsection, and the Director shall not seek a recovery 
                of funds from the recipient for such failure.
                    ``(C) Recommencement of payments.--Whenever the 
                Director determines (whether by certification or other 
                appropriate evidence) that a recipient of funds who is 
                subject to the withholding of payments under 
                subparagraph (A)(i) has cured the failure providing the 
                basis for the withholding of payments, the Director 
                shall cease the withholding of payments to the recipient 
                under that subparagraph.
            ``(6) Separability.--If any provision of this subsection is 
        held invalid, the remainder of this subsection shall not be 
        affected thereby.
            ``(7) Definitions.--In this section:
                    ``(A) Child pornography.--The term `child 
                pornography' has the meaning given such term in section 
                2256 of title 18, United States Code.
                    ``(B) Harmful to minors.--The term `harmful to 
                minors' means any picture, image, graphic image file, or 
                other visual depiction that--
                          ``(i) taken as a whole and with respect to 
                      minors, appeals to a prurient interest in nudity, 
                      sex, or excretion;
                          ``(ii) depicts, describes, or represents, in a 
                      patently offensive way with respect to what is 
                      suitable for minors, an actual or simulated sexual 
                      act or sexual contact, actual or simulated normal 
                      or perverted sexual acts, or a lewd exhibition of 
                      the genitals; and

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

                          ``(iii) taken as a whole, lacks serious 
                      literary, artistic, political, or scientific value 
                      as to minors.
                    ``(C) Minor.--The term `minor' means an individual 
                who has not attained the age of 17.
                    ``(D) Obscene.--The term `obscene' has the meaning 
                given such term in section 1460 of title 18, United 
                States Code.
                    ``(E) Sexual act; sexual contact.--The terms `sexual 
                act' and `sexual contact' have the meanings given such 
                terms in section 2246 of title 18, United States 
                Code.''.

    (b) Effective Date.--The amendment made by this section shall take 
effect 120 days after the date of the enactment of this Act.

                 Subtitle B--Universal Service Discounts

SEC. 1721. REQUIREMENT FOR SCHOOLS AND LIBRARIES TO ENFORCE INTERNET 
            SAFETY POLICIES WITH TECHNOLOGY PROTECTION MEASURES FOR 
            COMPUTERS WITH INTERNET ACCESS AS CONDITION OF UNIVERSAL 
            SERVICE DISCOUNTS.

    (a) Schools.--Section 254(h) of the Communications Act of 1934 (47 
U.S.C. 254(h)) is amended--
            (1) by redesignating paragraph (5) as paragraph (7); and
            (2) by inserting after paragraph (4) the following new 
        paragraph (5):
            ``(5) Requirements for certain schools with computers having 
        internet access.--
                    ``(A) Internet safety.--
                          ``(i) In general.--Except as provided in 
                      clause (ii), an elementary or secondary school 
                      having computers with Internet access may not 
                      receive services at discount rates under paragraph 
                      (1)(B) unless the school, school board, local 
                      educational agency, or other authority with 
                      responsibility for administration of the school--
                                    ``(I) submits to the Commission the 
                                certifications described in 
                                subparagraphs (B) and (C);
                                    ``(II) submits to the Commission a 
                                certification that an Internet safety 
                                policy has been adopted and implemented 
                                for the school under subsection (l); and
                                    ``(III) ensures the use of such 
                                computers in accordance with the 
                                certifications.
                          ``(ii) Applicability.--The prohibition in 
                      clause (i) shall not apply with respect to a 
                      school that receives services at discount rates 
                      under paragraph (1)(B) only for purposes other 
                      than the provision of Internet access, Internet 
                      service, or internal connections.
                          ``(iii) Public notice; hearing.--An elementary 
                      or secondary school described in clause (i), or 
                      the school board, local educational agency, or 
                      other authority with responsibility for 
                      administration of the school, shall provide 
                      reasonable public notice and hold at least one 
                      public hearing or meeting to address the proposed 
                      Internet safety policy. In the case of an 
                      elementary

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

                      or secondary school other than an elementary or 
                      secondary school as defined in section 14101 of 
                      the Elementary and Secondary Education Act of 1965 
                      (20 U.S.C. 8801), the notice and hearing required 
                      by this clause may be limited to those members of 
                      the public with a relationship to the school.
                    ``(B) Certification with respect to minors.--A 
                certification under this subparagraph is a certification 
                that the school, school board, local educational agency, 
                or other authority with responsibility for 
                administration of the school--
                          ``(i) is enforcing a policy of Internet safety 
                      for minors that includes monitoring the online 
                      activities of minors and the operation of a 
                      technology protection measure with respect to any 
                      of its computers with Internet access that 
                      protects against access through such computers to 
                      visual depictions that are--
                                    ``(I) obscene;
                                    ``(II) child pornography; or
                                    ``(III) harmful to minors; and
                          ``(ii) is enforcing the operation of such 
                      technology protection measure during any use of 
                      such computers by minors.
                    ``(C) Certification with respect to adults.--A 
                certification under this paragraph is a certification 
                that the school, school board, local educational agency, 
                or other authority with responsibility for 
                administration of the school--
                          ``(i) is enforcing a policy of Internet safety 
                      that includes the operation of a technology 
                      protection measure with respect to any of its 
                      computers with Internet access that protects 
                      against access through such computers to visual 
                      depictions that are--
                                    ``(I) obscene; or
                                    ``(II) child pornography; and
                          ``(ii) is enforcing the operation of such 
                      technology protection measure during any use of 
                      such computers.
                    ``(D) Disabling during adult use.--An administrator, 
                supervisor, or other person authorized by the certifying 
                authority under subparagraph (A)(i) may disable the 
                technology protection measure concerned, during use by 
                an adult, to enable access for bona fide research or 
                other lawful purpose.
                    ``(E) Timing of implementation.--
                          ``(i) In general.--Subject to clause (ii) in 
                      the case of any school covered by
this paragraph as of the effective date of this paragraph under section 
1721(h) of the Children's Internet Protection Act, the certification 
under subparagraphs (B) and (C) shall be made--
                                    ``(I) with respect to the first 
                                program funding year under this 
                                subsection following such effective 
                                date, not later than 120 days after the 
                                beginning of such program funding year; 
                                and
                                    ``(II) with respect to any 
                                subsequent program funding year, as part 
                                of the application process for such 
                                program funding year.

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

                          ``(ii) Process.--
                                    ``(I) Schools with internet safety 
                                policy and technology protection 
                                measures in place.--A school covered by 
                                clause (i) that has in place an Internet 
                                safety policy and technology protection 
                                measures meeting the requirements 
                                necessary for certification under 
                                subparagraphs (B) and (C) shall certify 
                                its compliance with subparagraphs (B) 
                                and (C) during each annual program 
                                application cycle under this subsection, 
                                except that with respect to the first 
                                program funding year after the effective 
                                date of this paragraph under section 
                                1721(h) of the Children's Internet 
                                Protection Act, the certifications shall 
                                be made not later than 120 days after 
                                the beginning of such first program 
                                funding year.
                                    ``(II) Schools without internet 
                                safety policy and technology protection 
                                measures in place.--A school covered by 
                                clause (i) that does not have in place 
                                an Internet safety policy and technology 
                                protection measures meeting the 
                                requirements necessary for certification 
                                under subparagraphs (B) and (C)--
                                            ``(aa) for the first program 
                                        year after the effective date of 
                                        this subsection in which it is 
                                        applying for funds under this 
                                        subsection, shall certify that 
                                        it is undertaking such actions, 
                                        including any necessary 
                                        procurement procedures, to put 
                                        in place an Internet safety 
                                        policy and technology protection 
                                        measures meeting the 
                                        requirements necessary for 
                                        certification under 
                                        subparagraphs (B) and (C); and
                                            ``(bb) for the second 
                                        program year after the effective 
                                        date of this subsection in which 
                                        it is applying for funds under 
                                        this subsection, shall certify 
                                        that it is in compliance with 
                                        subparagraphs (B) and (C).
                                Any school that is unable to certify 
                                compliance with such requirements in 
                                such second program year shall be 
                                ineligible for services at discount 
                                rates or funding in lieu of services at 
                                such rates under this subsection for 
                                such second year and all subsequent 
                                program years under this subsection, 
                                until such time as such school comes 
                                into compliance with this paragraph.
                                    ``(III) Waivers.--Any school subject 
                                to subclause (II) that cannot come into 
                                compliance with subparagraphs (B) and 
                                (C) in such second year program may seek 
                                a waiver of subclause (II)(bb) if State 
                                or local procurement rules or 
                                regulations or competitive bidding 
                                requirements prevent the making of the 
                                certification otherwise required by such 
                                subclause. A school, school board, local 
                                educational agency, or other authority 
                                with responsibility for administration 
                                of the school shall notify the 
                                Commission of the applicability of such 
                                subclause to the school. Such notice 
                                shall certify that

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

                                the school in question will be brought 
                                into compliance before the start of the 
                                third program year after the effective 
                                date of this subsection in which the 
                                school is applying for funds under this 
                                subsection.
                    ``(F) Noncompliance.--
                          ``(i) Failure to submit certification.--Any 
                      school that knowingly fails
to comply with the application guidelines regarding the annual 
submission of certification required by this paragraph shall not be 
eligible for services at discount rates or funding in lieu of services 
at such rates under this subsection.
                          ``(ii) Failure to comply with certification.--
                      Any school that knowingly fails to ensure the use 
                      of its computers in accordance with a 
                      certification under subparagraphs (B) and (C) 
                      shall reimburse any funds and discounts received 
                      under this subsection for the period covered by 
                      such certification.
                          ``(iii) Remedy of noncompliance.--
                                    ``(I) Failure to submit.--A school 
                                that has failed to submit a 
                                certification under clause (i) may 
                                remedy the failure by submitting the 
                                certification to which the failure 
                                relates. Upon submittal of such 
                                certification, the school shall be 
                                eligible for services at discount rates 
                                under this subsection.
                                    ``(II) Failure to comply.--A school 
                                that has failed to comply with a 
                                certification as described in clause 
                                (ii) may remedy the failure by ensuring 
                                the use of its computers in accordance 
                                with such certification. Upon submittal 
                                to the Commission of a certification or 
                                other appropriate evidence of such 
                                remedy, the school shall be eligible for 
                                services at discount rates under this 
                                subsection.''.

    (b) Libraries.--Such section 254(h) is further amended by inserting 
after paragraph (5), as amended by subsection (a) of this section, the 
following new paragraph:
            ``(6) Requirements for certain libraries with computers 
        having internet access.--
                    ``(A) Internet safety.--
                          ``(i) In general.--Except as provided in 
                      clause (ii), a library having one or more 
                      computers with Internet access may not receive 
                      services at discount rates under paragraph (1)(B) 
                      unless the library--
                                    ``(I) submits to the Commission the 
                                certifications described in 
                                subparagraphs (B) and (C); and
                                    ``(II) submits to the Commission a 
                                certification that an Internet safety 
                                policy has been adopted and implemented 
                                for the library under subsection (l); 
                                and
                                    ``(III) ensures the use of such 
                                computers in accordance with the 
                                certifications.
                          ``(ii) Applicability.--The prohibition in 
                      clause (i) shall not apply with respect to a 
                      library that receives services at discount rates 
                      under paragraph (1)(B) only for purposes other 
                      than the provision of Internet access, Internet 
                      service, or internal connections.

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

                          ``(iii) Public notice; hearing.--A library 
                      described in clause (i) shall provide reasonable 
                      public notice and hold at least one public hearing 
                      or meeting to address the proposed Internet safety 
                      policy.
                    ``(B) Certification with respect to minors.--A 
                certification under this subparagraph is a certification 
                that the library--
                          ``(i) is enforcing a policy of Internet safety 
                      that includes the operation of a technology 
                      protection measure with respect to any of its 
                      computers with Internet access that protects 
                      against access through such computers to visual 
                      depictions that are--
                                    ``(I) obscene;
                                    ``(II) child pornography; or
                                    ``(III) harmful to minors; and
                          ``(ii) is enforcing the operation of such 
                      technology protection measure during any use of 
                      such computers by minors.
                    ``(C) Certification with respect to adults.--A 
                certification under this paragraph is a certification 
                that the library--
                          ``(i) is enforcing a policy of Internet safety 
                      that includes the operation of a technology 
                      protection measure with respect to any of its 
                      computers with Internet access that protects 
                      against access through
such computers to visual depictions that are--
                                    ``(I) obscene; or
                                    ``(II) child pornography; and
                          ``(ii) is enforcing the operation of such 
                      technology protection measure during any use of 
                      such computers.
                    ``(D) Disabling during adult use.--An administrator, 
                supervisor, or other person authorized by the certifying 
                authority under subparagraph (A)(i) may disable the 
                technology protection measure concerned, during use by 
                an adult, to enable access for bona fide research or 
                other lawful purpose.
                    ``(E) Timing of implementation.--
                          ``(i) In general.--Subject to clause (ii) in 
                      the case of any library covered by this paragraph 
                      as of the effective date of this paragraph under 
                      section 1721(h) of the Children's Internet 
                      Protection Act, the certification under 
                      subparagraphs (B) and (C) shall be made--
                                    ``(I) with respect to the first 
                                program funding year under this 
                                subsection following such effective 
                                date, not later than 120 days after the 
                                beginning of such program funding year; 
                                and
                                    ``(II) with respect to any 
                                subsequent program funding year, as part 
                                of the application process for such 
                                program funding year.
                          ``(ii) Process.--
                                    ``(I) Libraries with internet safety 
                                policy and technology protection 
                                measures in place.--A library covered by 
                                clause (i) that has in place an Internet 
                                safety policy and technology protection 
                                measures meeting the requirements 
                                necessary for certification under 
                                subparagraphs (B)

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

                                and (C) shall certify its compliance 
                                with subparagraphs (B) and (C) during 
                                each annual program application cycle 
                                under this subsection, except that with 
                                respect to the first program funding 
                                year after the effective date of this 
                                paragraph under section 1721(h) of the 
                                Children's Internet Protection Act, the 
                                certifications shall be made not later 
                                than 120 days after the beginning of 
                                such first program funding year.
                                    ``(II) Libraries without internet 
                                safety policy and technology protection 
                                measures in place.--A library covered by 
                                clause (i) that does not have in place 
                                an Internet safety policy and technology 
                                protection measures meeting the 
                                requirements necessary for certification 
                                under subparagraphs (B) and (C)--
                                            ``(aa) for the first program 
                                        year after the effective date of 
                                        this subsection in which it is 
                                        applying for funds under this 
                                        subsection, shall certify that 
                                        it is undertaking such actions, 
                                        including any necessary 
                                        procurement procedures, to put 
                                        in place an Internet safety 
                                        policy and technology protection 
                                        measures meeting the 
                                        requirements necessary for 
                                        certification under 
                                        subparagraphs (B) and (C); and
                                            ``(bb) for the second 
                                        program year after the effective 
                                        date of this subsection in which 
                                        it is applying for funds under 
                                        this subsection, shall certify 
                                        that it is in compliance with 
                                        subparagraphs (B) and (C).
                                Any library that is unable to certify 
                                compliance with such requirements in 
                                such second program year shall be 
                                ineligible for services at discount 
                                rates or funding in lieu of services at 
                                such rates under this subsection for 
                                such second year and all subsequent 
                                program years under this subsection, 
                                until such time as such library comes 
                                into compliance with this paragraph.
                                    ``(III) Waivers.--Any library 
                                subject to subclause (II) that cannot 
                                come into compliance with subparagraphs 
                                (B) and (C) in such second year may seek 
                                a waiver of subclause (II)(bb) if State 
                                or local procurement rules or 
                                regulations or competitive bidding 
                                requirements prevent the
making of the certification otherwise required by such subclause. A 
library, library board, or other authority with responsibility for 
administration of the library shall notify the Commission of the 
applicability of such subclause to the library. Such notice shall 
certify that the library in question will be brought into compliance 
before the start of the third program year after the effective date of 
this subsection in which the library is applying for funds under this 
subsection.
                    ``(F) Noncompliance.--

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

                          ``(i) Failure to submit certification.--Any 
                      library that knowingly fails to comply with the 
                      application guidelines regarding the annual 
                      submission of certification required by this 
                      paragraph shall not be eligible for services at 
                      discount rates or funding in lieu of services at 
                      such rates under this subsection.
                          ``(ii) Failure to comply with certification.--
                      Any library that knowingly fails to ensure the use 
                      of its computers in accordance with a 
                      certification under subparagraphs (B) and (C) 
                      shall reimburse all funds and discounts received 
                      under this subsection for the period covered by 
                      such certification.
                          ``(iii) Remedy of noncompliance.--
                                    ``(I) Failure to submit.--A library 
                                that has failed to submit a 
                                certification under clause (i) may 
                                remedy the failure by submitting the 
                                certification to which the failure 
                                relates. Upon submittal of such 
                                certification, the library shall be 
                                eligible for services at discount rates 
                                under this subsection.
                                    ``(II) Failure to comply.--A library 
                                that has failed to comply with a 
                                certification as described in clause 
                                (ii) may remedy the failure by ensuring 
                                the use of its computers in accordance 
                                with such certification. Upon submittal 
                                to the Commission of a certification or 
                                other appropriate evidence of such 
                                remedy, the library shall be eligible 
                                for services at discount rates under 
                                this subsection.''.

    (c) Definitions.--Paragraph (7) of such section, as redesignated by 
subsection (a)(1) of this section, is amended by adding at the end the 
following:
                    ``(D) Minor.--The term `minor' means any individual 
                who has not attained the age of 17 years.
                    ``(E) Obscene.--The term `obscene' has the meaning 
                given such term in section 1460 of title 18, United 
                States Code.
                    ``(F) Child pornography.--The term `child 
                pornography' has the meaning given such term in section 
                2256 of title 18, United States Code.
                    ``(G) Harmful to minors.--The term `harmful to 
                minors' means any picture, image, graphic image file, or 
                other visual depiction that--
                          ``(i) taken as a whole and with respect to 
                      minors, appeals to a prurient interest in nudity, 
                      sex, or excretion;
                          ``(ii) depicts, describes, or represents, in a 
                      patently offensive way with respect to what is 
                      suitable for minors, an actual or simulated sexual 
                      act or sexual contact, actual or simulated normal 
                      or perverted sexual acts, or a lewd exhibition of 
                      the genitals; and
                          ``(iii) taken as a whole, lacks serious 
                      literary, artistic, political, or scientific value 
                      as to minors.
                    ``(H) Sexual act; sexual contact.--The terms `sexual 
                act' and `sexual contact' have the meanings given such 
                terms in section 2246 of title 18, United States Code.
                    ``(I) Technology protection measure.--The term 
                `technology protection measure' means a specific 
                technology that blocks or filters Internet access to the 
                material covered

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

                by a certification under paragraph (5) or (6) to which 
                such certification relates.''.

    (d) Conforming Amendment.--Paragraph (4) of such section is amended 
by striking ``paragraph (5)(A)'' and inserting ``paragraph (7)(A)''.
    (e) Separability.--If any provision of paragraph (5) or (6) of 
section 254(h) of the Communications Act of 1934, as amended by this 
section, or the application thereof to any person or circumstance is 
held invalid, the remainder of such paragraph and the application of 
such paragraph to other persons or circumstances shall not be affected 
thereby.
    (f ) Regulations.--
            (1) Requirement.--The Federal Communications Commission 
        shall prescribe regulations for purposes of administering the 
        provisions of paragraphs (5) and (6) of section 254(h) of the 
        Communications Act of 1934, as amended by this section.
            (2) Deadline.--Notwithstanding any other provision of law, 
        the Commission shall prescribe regulations under paragraph (1) 
        so as to ensure that such regulations take effect 120 days after 
        the date of the enactment of this Act.

    (g) Availability of Certain Funds for Acquisition of Technology 
Protection Measures.--
            (1) In general.--Notwithstanding any other provision of law, 
        funds available under section 3134 or part A of title VI of the 
        Elementary and Secondary Education Act of 1965, or under section 
        231 of the Library Services and Technology Act, may be used for 
        the purchase or acquisition of technology protection measures 
        that are necessary to meet the requirements of this title and 
        the amendments made by this title. No other sources of funds for 
        the purchase or acquisition of such measures are authorized by 
        this title, or the amendments made by this title.
            (2) Technology protection measure defined.--In this section, 
        the term ``technology protection measure'' has the meaning given 
        that term in section 1703.

    (h) Effective Date.--The amendments made by this section shall take 
effect 120 days after the date of the enactment of this Act.

         Subtitle C--Neighborhood Children's Internet Protection

SEC. 1731. SHORT TITLE.

    This subtitle may be cited as the ``Neighborhood Children's Internet 
Protection Act''.

SEC. 1732. INTERNET SAFETY POLICY REQUIRED.

    Section 254 of the Communications Act of 1934 (47 U.S.C. 254) is 
amended by adding at the end the following:
    ``(l) Internet Safety Policy Requirement for Schools and 
Libraries.--
            ``(1) In general.--In carrying out its responsibilities 
        under subsection (h), each school or library to which subsection 
        (h) applies shall--
                    ``(A) adopt and implement an Internet safety policy 
                that addresses--

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

                          ``(i) access by minors to inappropriate matter 
                      on the Internet and World Wide Web;
                          ``(ii) the safety and security of minors when 
                      using electronic mail, chat rooms, and other forms 
                      of direct electronic communications;
                          ``(iii) unauthorized access, including so-
                      called `hacking', and other unlawful activities by 
                      minors online;
                          ``(iv) unauthorized disclosure, use, and 
                      dissemination of personal identification 
                      information regarding minors; and
                          ``(v) measures designed to restrict minors' 
                      access to materials harmful to minors; and
                    ``(B) provide reasonable public notice and hold at 
                least one public hearing or meeting to address the 
                proposed Internet safety policy.
            ``(2) Local determination of content.--A determination 
        regarding what matter is inappropriate for minors shall be made 
        by the school board, local educational agency, library, or other 
        authority responsible for making the determination. No agency or 
        instrumentality of the United States Government may--
                    ``(A) establish criteria for making such 
                determination;
                    ``(B) review the determination made by the 
                certifying school, school board, local educational 
                agency, library, or other authority; or
                    ``(C) consider the criteria employed by the 
                certifying school, school board, local educational 
                agency, library, or other authority in the 
                administration of subsection (h)(1)(B).
            ``(3) Availability for review.--Each Internet safety policy 
        adopted under this subsection shall be made available to the 
        Commission, upon request of the Commission, by the school, 
        school board, local educational agency, library, or other 
        authority responsible for adopting such Internet safety policy 
        for purposes of the review of such Internet safety policy by the 
        Commission.
            ``(4) Effective date.--This subsection shall apply with 
        respect to schools and libraries on or after the date that is 
        120 days after the date of the enactment of the Children's 
        Internet Protection Act.''.

SEC. 1733. IMPLEMENTING REGULATIONS.

    Not later than 120 days after the date of enactment of this Act, the 
Federal Communications Commission shall prescribe regulations for 
purposes of section 254(l) of the Communications Act of 1934, as added 
by section 1732 of this Act.

                      Subtitle D--Expedited Review

SEC. 1741. EXPEDITED REVIEW.

    (a) Three-Judge District Court Hearing.--Notwithstanding any other 
provision of law, any civil action challenging the constitutionality, on 
its face, of this title or any amendment made by this title, or any 
provision thereof, shall be heard by a district

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

court of three judges convened pursuant to the provisions of section 
2284 of title 28, United States Code.
    (b) Appellate Review.--Notwithstanding any other provision of law, 
an interlocutory or final judgment, decree, or order of the court of 
three judges in an action under subsection (a) holding this title or an 
amendment made by this title, or any provision thereof, unconstitutional 
shall be reviewable as a matter of right by direct appeal to the Supreme 
Court. Any such appeal shall be filed not more than 20 days after entry 
of such judgment, decree, or order.
    This Act may be cited as the ``Miscellaneous Appropriations Act, 
2001''.

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

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

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

                          APPENDIX D-1--S. 2273

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Black Rock Desert-High Rock Canyon 
Emigrant Trails National Conservation Area Act of 2000''.

SEC. 2. FINDINGS.

    The Congress finds the following:
            (1) The areas of northwestern Nevada known as the Black Rock 
        Desert and High Rock Canyon contain and surround the last 
        nationally significant, untouched segments of the historic 
        California emigrant Trails, including wagon ruts, historic 
        inscriptions, and a wilderness landscape largely unchanged since 
        the days of the pioneers.
            (2) The relative absence of development in the Black Rock 
        Desert and high Rock Canyon areas from emigrant times to the 
        present day offers a unique opportunity to capture the terrain, 
        sights, and conditions of the overland trails as they were 
        experienced by the emigrants and to make available to both 
        present and future generations of Americans the opportunity of 
        experiencing emigrant conditions in an unaltered setting.
            (3) The Black Rock Desert and High Rock Canyon areas are 
        unique segments of the Northern Great Basin and contain broad 
        representation of the Great Basin's land forms and plant and 
        animal species, including golden eagles and other birds of prey, 
        sage grouse, mule deer, pronghorn antelope, bighorn sheep, free 
        roaming horses and burros, threatened fish and sensitive plants.
            (4) The Black Rock-High Rock region contains a number of 
        cultural and natural resources that have been declared eligible 
        for National Historic Landmark and Natural Landmark status, 
        including a portion of the 1843-44 John Charles Fremont 
        exploration route, the site of the death of Peter Lassen, early 
        military facilities, and examples of early homesteading and 
        mining.
            (5) The archeological, paleontological, and geographical 
        resources of the Black Rock-High Rock region include numerous 
        prehistoric and historic Native American sites, wooly mammoth 
        sites, some of the largest natural potholes of North America, 
        and a remnant dry Pleistocene lakebed (playa) where the 
        curvature of the Earth may be observed.
            (6) The two large wilderness mosaics that frame the 
        conservation area offer exceptional opportunities for solitude 
        and serve to protect the integrity of the viewshed of the 
        historic emigrant trails.

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

            (7) Public lands in the conservation area have been used for 
        domestic livestock grazing for over a century, with resultant 
        benefits to community stability and contributions to the local 
        and State economies. It has not been demonstrated that 
        continuation of this use would be incompatible with appropriate 
        protection and sound management of the resource values of these 
        lands; therefore, it is expected that such grazing will continue 
        in accordance with the management plan for the conservation area 
        and other applicable laws and regulations.
            (8) The Black Rock Desert playa is a unique natural resource 
        that serves as the primary destination for the majority of 
        visitors to the conservation area, including visitors associated 
        with large-scale permitted events. It is expected that such 
        permitted events will continue to be administered in accordance 
        with the management plan for the conservation area and other 
        applicable laws and regulations.

SEC. 3. DEFINITIONS.

    As used in this Act:
            (1) The term ``Secretary'' means the Secretary of the 
        Interior.
            (2) The term ``public lands'' has the meaning stated in 
        section 103(e) of the Federal Land Policy and Management Act of 
        1976 (43 U.S.C. 1702(e)).
            (3) The term ``conservation area'' means the Black Rock 
        Desert-High Rock Canyon Emigrant Trails National Conservation 
        Area established pursuant to section 4 of this Act.

SEC. 4. ESTABLISHMENT OF THE CONSERVATION AREA.

    (a) Establishment and Purposes.--In order to conserve, protect, and 
enhance for the benefit and enjoyment of present and future generations 
the unique and nationally important historical, cultural, 
paleontological, scenic, scientific, biological, educational, wildlife, 
riparian, wilderness, endangered species, and recreational values and 
resources associated with the Applegate-Lassen and Nobles Trails 
corridors and surrounding areas, there is hereby established the Black 
Rock Desert-High Rock Canyon Emigrant Trails National Conservation Area 
in the State of Nevada.
    (b) Areas Included.--The conservation area shall consist of 
approximately 797,100 acres of public lands as generally depicted on the 
map entitled ``Black Rock Desert Emigrant Trail National Conservation 
Area'' and dated July 19, 2000.
    (c) Maps and Legal Description.--As soon as practicable after the 
date of the enactment of this Act, the Secretary shall submit to 
Congress a map and legal description of the conservation area. The map 
and legal description shall have the same force and effect as if 
included in this Act, except the Secretary may correct clerical and 
typographical errors in such map and legal description. Copies of the 
map and legal description shall be on file and available for public 
inspection in the appropriate offices of the Bureau of Land Management.

SEC. 5. MANAGEMENT.

    (a) Management.--The Secretary, acting through the Bureau of Land 
Management, shall manage the conservation area in a manner that 
conserves, protects, and enhances its resources and values, including 
those resources and values specified in subsection 4(a), in accordance 
with this Act, the Federal Land Policy and

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

Management Act of 1976 (43 U.S.C. 1701 et seq.), and other applicable 
provisions of law.
    (b) Access.--
            (1) In general.--The Secretary shall maintain adequate 
        access for the reasonable use and enjoyment of the conservation 
        area.
            (2) Private land.--The Secretary shall provide reasonable 
        access to privately owned land or interests in land within the 
        boundaries of the conservation area.
            (3) Existing public roads.--The Secretary is authorized to 
        maintain existing public access within the boundaries of the 
        conservation area in a manner consistent with the purposes for 
        which the conservation area was established.

    (c) Uses.--
            (1) In general.--The Secretary shall only allow such uses of 
        the conservation area as the Secretary finds will further the 
        purposes for which the conservation area is established.
            (2) Off-highway vehicle use.--Except where needed for 
        administrative purposes or to respond to an emergency, use of 
        motorized vehicles in the conservation area shall be permitted 
        only on roads and trails and in other areas designated for use 
        of motorized vehicles as part of the management plan prepared 
        pursuant to subsection (e).
            (3) Permitted events.--The Secretary may continue to permit 
        large-scale events in defined, low impact areas of the Black 
        Rock Desert playa in the conservation area in accordance with 
        the management plan prepared pursuant to subsection (e).

    (d) Hunting, Trapping, and Fishing.--Nothing in this Act shall be 
deemed to diminish the jurisdiction of the State of Nevada with respect 
to fish and wildlife management, including regulation of hunting and 
fishing, on public lands within the conservation area.
    (e) Management Plan.--Within three years following the date of 
enactment of this Act, the Secretary shall develop a comprehensive 
resource management plan for the long-term protection and management of 
the conservation area. The plan shall be developed with full public 
participation and shall describe the appropriate uses and management of 
the conservation area consistent with the provisions of this Act. The 
plan may incorporate appropriate decisions contained in any current 
management or activity plan for the area and may use information 
developed in previous studies of the lands within or adjacent to the 
conservation area.
    (f) Grazing.--Where the Secretary of the Interior currently permits 
livestock grazing in the conservation area, such grazing shall be 
allowed to continue subject to all applicable laws, regulations, and 
executive orders.
    (g) Visitor Service Facilities.--The Secretary is authorized to 
establish, in cooperation with other public or private entities as the 
Secretary may deem appropriate, visitor service facilities for the 
purpose of providing information about the historical, cultural, 
ecological, recreational, and other resources of the conservation area.

SEC. 6. WITHDRAWAL.

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

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

hereafter acquired by the United States are hereby withdrawn from all 
forms of entry, appropriation, or disposal under the public land laws, 
from location, entry, and patent under the mining laws, from operation 
of the mineral leasing and geothermal leasing laws and from the minerals 
materials laws and all amendments thereto.

SEC. 7. NO BUFFER ZONES.

    The Congress does not intend for the establishment of the 
conservation area to lead to the creation of protective perimeters or 
buffer zones around the conservation area. The fact that there may be 
activities or uses on lands outside the conservation area that would not 
be permitted in the conservation area shall not preclude such activities 
or uses on such lands up to the boundary of the conservation area 
consistent with other applicable laws.

SEC. 8. WILDERNESS.

    (a) Designation.--In furtherance of the purposes of the Wilderness 
Act of 1964 (16 U.S.C. 1131 et seq.), the following lands in the State 
of Nevada are designated as wilderness, and, therefore, as components of 
the National Wilderness Preservation System:
            (1) Certain lands in the Black Rock Desert Wilderness Study 
        Area comprised of approximately 315,700 acres, as generally 
        depicted on a map entitled ``Black Rock Desert Wilderness--
        Proposed'' and dated July 19, 2000, and which shall be known as 
        the Black Rock Desert Wilderness.
            (2) Certain lands in the Pahute Peak Wilderness Study Area 
        comprised of approximately 57,400 acres, as generally depicted 
        on a map entitled ``Pahute Peak Wilderness--Proposed'' and dated 
        July 19, 2000, and which shall be known as the Pahute Peak 
        Wilderness.
            (3) Certain lands in the North Black Rock Range Wilderness 
        Study Area comprised of approximately 30,800 acres, as generally 
        depicted on a map entitled ``North Black Rock Range Wilderness--
        Proposed'' and dated July 19, 2000, and which shall be known as 
        the North Black Rock Range Wilderness.
            (4) Certain lands in the East Fork High Rock Canyon 
        Wilderness Study Area comprised of approximately 52,800 acres, 
        as generally depicted on a map entitled ``East Fork High Rock 
        Canyon Wilderness--Proposed'' and dated July 19, 2000, and which 
        shall be known as the East Fork High Rock Canyon Wilderness.
            (5) Certain lands in the High Rock Lake Wilderness Study 
        Area comprised of approximately 59,300 acres, as generally 
        depicted on a map entitled ``High Rock Lake Wilderness--
        Proposed'' and dated July 19, 2000, and which shall be known as 
        the High Rock Lake Wilderness.
            (6) Certain lands in the Little High Rock Canyon Wilderness 
        Study Area comprised of approximately 48,700 acres, as generally 
        depicted on a map entitled ``Little High Rock Canyon 
        Wilderness--Proposed'' and dated July 19, 2000, and which shall 
        be known as the Little High Rock Canyon Wilderness.
            (7) Certain lands in the High Rock Canyon Wilderness Study 
        Area and Yellow Rock Canyon Wilderness Study Area comprised of 
        approximately 46,600 acres, as generally depicted on a map 
        entitled ``High Rock Canyon Wilderness--Proposed'' and dated 
        July 19, 2000, and which shall be known as the High Rock Canyon 
        Wilderness.

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

            (8) Certain lands in the Calico Mountains Wilderness Study 
        Area comprised of approximately 65,400 acres, as generally 
        depicted on a map entitled ``Calico Mountains Wilderness--
        Proposed'' and dated July 19, 2000, and which shall be known as 
        the Calico Mountains Wilderness.
            (9) Certain lands in the South Jackson Mountains Wilderness 
        Study Area comprised of approximately 56,800 acres, as generally 
        depicted on a map entitled ``South Jackson Mountains 
        Wilderness--Proposed'' and dated July 19, 2000, and which shall 
        be known as the South Jackson Mountains Wilderness.
            (10) Certain lands in the North Jackson Mountains Wilderness 
        Study Area comprised of approximately 24,000 acres, as generally 
        depicted on a map entitled ``North Jackson Mountains 
        Wilderness--Proposed'' and dated July 19, 2000, and which shall 
        be known as the North Jackson Mountains Wilderness.

    (b) Administration of Wilderness Areas.--Subject to valid existing 
rights, each wilderness area designated by this Act shall be 
administered by the Secretary in accordance with the provisions of the 
Wilderness Act, except that any reference in such provisions to the 
effective date of the Wilderness Act shall be deemed to be a reference 
to the date of enactment of this Act and any reference to the Secretary 
of Agriculture shall be deemed to be a reference to the Secretary of the 
Interior.
    (c) Maps and Legal Description.--As soon as practicable after the 
date of the enactment of this Act, the Secretary shall submit to 
Congress a map and legal description of the wilderness areas designated 
under this Act. The map and legal description shall have the same force 
and effect as if included in this Act, except the Secretary may correct 
clerical and typographical errors in such map and legal description. 
Copies of the map and legal description shall be on file and available 
for public inspection in the appropriate offices of the Bureau of Land 
Management.
    (d) Grazing.--Within the wilderness areas designated under 
subsection (a), the grazing of livestock, where established prior to the 
date of enactment of this Act, shall be permitted to continue subject to 
such reasonable regulations, policies, and practices as the Secretary 
deems necessary, as long as such regulations, policies, and practices 
fully conform with and implement the intent of Congress regarding 
grazing in such areas as such intent is expressed in the Wilderness Act 
and section 101(f) of Public Law 101-628.

SEC. 9. AUTHORIZATION OF APPROPRIATIONS.

    There is hereby authorized to be appropriated such sums as may be 
necessary to carry out the provisions of this Act.

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

                          APPENDIX D-2--S. 2885

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Jamestown 400th Commemoration 
Commission Act of 2000''.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--Congress finds that--
            (1) the founding of the colony at Jamestown, Virginia in 
        1607, the first permanent English colony in the New World, and 
        the capital of Virginia for 92 years, has major significance in 
        the history of the United States;
            (2) the settlement brought people from throughout the 
        Atlantic Basin together to form a multicultural society, 
        including English, other Europeans, Native Americans, and 
        Africans;
            (3) the economic, political, religious, and social 
        institutions that developed during the first 9 decades of the 
        existence of Jamestown continue to have profound effects on the 
        United States, particularly in English common law and language, 
        cross cultural relationships, and economic structure and status;
            (4) the National Park Service, the Association for the 
        Preservation of Virginia Antiquities, and the Jamestown-Yorktown 
        Foundation of the Commonwealth of Virginia collectively own and 
        operate significant resources related to the early history of 
        Jamestown; and
            (5) in 1996--
                    (A) the Commonwealth of Virginia designated the 
                Jamestown-Yorktown Foundation as the State agency 
                responsible for planning and implementing the 
                Commonwealth's portion of the commemoration of the 400th 
                anniversary of the founding of the Jamestown settlement;
                    (B) the Foundation created the Celebration 2007 
                Steering Committee, known as the Jamestown 2007 Steering 
                Committee; and
                    (C) planning for the commemoration began.

    (b) Purpose.--The purpose of this Act is to establish the Jamestown 
400th Commemoration Commission to--
            (1) ensure a suitable national observance of the Jamestown 
        2007 anniversary by complementing the programs and activities of 
        the Commonwealth of Virginia;
            (2) cooperate with and assist the programs and activities of 
        the State in observance of the Jamestown 2007 anniversary;
            (3) assist in ensuring that Jamestown 2007 observances 
        provide an excellent visitor experience and beneficial 
        interaction between visitors and the natural and cultural 
        resources of the Jamestown sites;

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

            (4) assist in ensuring that the Jamestown 2007 observances 
        are inclusive and appropriately recognize the experiences of all 
        people present in 17th century Jamestown;
            (5) provide assistance to the development of Jamestown-
        related programs and activities;
            (6) facilitate international involvement in the Jamestown 
        2007 observances;
            (7) support and facilitate marketing efforts for a 
        commemorative coin, stamp, and related activities for the 
        Jamestown 2007 observances; and
            (8) assist in the appropriate development of heritage 
        tourism and economic benefits to the United States.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Commemoration.--The term ``commemoration'' means the 
        commemoration of the 400th anniversary of the founding of the 
        Jamestown settlement.
            (2) Commission.--The term ``Commission'' means the Jamestown 
        400th Commemoration Commission established by section 4(a).
            (3) Governor.--The term ``Governor'' means the Governor of 
        Virginia.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (5) State.--The term ``State'' means the Commonwealth of 
        Virginia, including agencies and entities of the Commonwealth.

SEC. 4. JAMESTOWN 400TH COMMEMORATION COMMISSION.

    (a) In General.--There is established a commission to be known as 
the ``Jamestown 400th Commemoration Commission''.
    (b) Membership.--
            (1) In general.--The Commission shall be composed of 15 
        members, of whom--
                    (A) 4 members shall be appointed by the Secretary, 
                taking into consideration the recommendations of the 
                Chairperson of the Jamestown 2007 Steering Committee;
                    (B) 4 members shall be appointed by the Secretary, 
                taking into consideration the recommendations of the 
                Governor;
                    (C) 2 members shall be employees of the National 
                Park Service, of which--
                          (i) 1 shall be the Director of the National 
                      Park Service (or a designee); and
                          (ii) 1 shall be an employee of the National 
                      Park Service having experience relevant to the 
                      commemoration, to be appointed by the Secretary; 
                      and
                    (D) 5 members shall be individuals that have an 
                interest in, support for, and expertise appropriate to, 
                the commemoration, to be appointed by the Secretary.
            (2) Term; vacancies.--
                    (A) Term.--A member of the Commission shall be 
                appointed for the life of the Commission.
                    (B) Vacancies.--
                          (i) In general.--A vacancy on the Commission 
                      shall be filled in the same manner in which the 
                      original appointment was made.

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

                          (ii) Partial term.--A member appointed to fill 
                      a vacancy on the Commission shall serve for the 
                      remainder of the term for which the predecessor of 
                      the member was appointed.
            (3) Meetings.--
                    (A) In general.--The Commission shall meet--
                          (i) at least twice each year; or
                          (ii) at the call of the Chairperson or the 
                      majority of the members of the Commission.
                    (B) Initial meeting.--Not later than 30 days after 
                the date on which all members of the Commission have 
                been appointed, the Commission shall hold the initial 
                meeting of the Commission.
            (4) Voting.--
                    (A) In general.--The Commission shall act only on an 
                affirmative vote of a majority of the members of the 
                Commission.
                    (B) Quorum.--A majority of the Commission shall 
                constitute a quorum.
            (5) Chairperson.--The Secretary shall appoint a Chairperson 
        of the Commission, taking into consideration any recommendations 
        of the Governor.

    (c) Duties.--
            (1) In general.--The Commission shall--
                    (A) plan, develop, and execute programs and 
                activities appropriate to commemorate the 400th 
                anniversary of the founding of Jamestown;
                    (B) generally facilitate Jamestown-related 
                activities throughout the United States;
                    (C) encourage civic, patriotic, historical, 
                educational, religious, economic, and other 
                organizations throughout the United States to organize 
                and participate in anniversary activities to expand the 
                understanding and appreciation of the significance of 
                the founding and early history of Jamestown;
                    (D) coordinate and facilitate for the public 
                scholarly research on, publication about, and 
                interpretation of, Jamestown; and
                    (E) ensure that the 400th anniversary of Jamestown 
                provides a lasting legacy and long-term public benefit 
                by assisting in the development of appropriate programs 
                and facilities.
            (2) Plans; reports.--
                    (A) Strategic plan; annual performance plans.--In 
                accordance with the Government Performance and Results 
                Act of 1993 (Public Law 103-62; 107 Stat. 285), the 
                Commission shall prepare a strategic plan and annual 
                performance plans for the activities of the Commission 
                carried out under this Act.
                    (B) Final report.--Not later than September 30, 
                2008, the Commission shall complete a final report that 
                contains--
                          (i) a summary of the activities of the 
                      Commission;
                          (ii) a final accounting of funds received and 
                      expended by the Commission; and
                          (iii) the findings and recommendations of the 
                      Commission.

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

    (d) Powers of the Commission.--The Commission may--
            (1) accept donations and make dispersions of money, personal 
        services, and real and personal property related to Jamestown 
        and of the significance of Jamestown in the history of the 
        United States;
            (2) appoint such advisory committees as the Commission 
        determines to be necessary to carry out this Act;
            (3) authorize any member or employee of the Commission to 
        take any action that the Commission is authorized to take by 
        this Act;
            (4) procure supplies, services, and property, and make or 
        enter into contracts, leases or other legal agreements, to carry 
        out this Act (except that any contracts, leases or other legal 
        agreements made or entered into by the Commission shall not 
        extend beyond the date of termination of the Commission);
            (5) use the United States mails in the same manner and under 
        the same conditions as other Federal agencies;
            (6) subject to approval by the Commission, make grants in 
        amounts not to exceed $10,000 to communities and nonprofit 
        organizations to develop programs to assist in the 
        commemoration;
            (7) make grants to research and scholarly organizations to 
        research, publish, or distribute information relating to the 
        early history of Jamestown; and
            (8) provide technical assistance to States, localities, and 
        nonprofit organizations to further the commemoration.

    (e) Commission Personnel Matters.--
            (1) Compensation of members of the commission.--
                    (A) In general.--Except as provided in subparagraph 
                (B), a member of the Commission shall serve without 
                compensation.
                    (B) Federal employees.--A member of the Commission 
                who is an officer or employee of the Federal Government 
                shall serve without compensation in addition to the 
                compensation received for the services of the member as 
                an officer or employee of the Federal Government.
                    (C) Travel expenses.--A member of the Commission 
                shall be allowed travel expenses, including per diem in 
                lieu of subsistence, at rates authorized for an employee 
                of an agency under subchapter I of chapter 57 of title 
                5, United States Code, while away from the home or 
                regular place of business of the member in the 
                performance of the duties of the Commission.
            (2) Staff.--
                    (A) In general.--The Chairperson of the Commission 
                may, without regard to the civil service laws (including 
                regulations), appoint and terminate an executive 
                director and such other additional personnel as are 
                necessary to enable the Commission to perform the duties 
                of the Commission.
                    (B) Confirmation of executive director.--The 
                employment of an executive director shall be subject to 
                confirmation by the Commission.
            (3) Compensation.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the Chairperson of the Commission may fix the 
                compensation of the executive director and other 
                personnel

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

                without regard to the provisions of chapter 51 and 
                subchapter III of chapter 53 of title 5, United States 
                Code, relating to classification of positions and 
                General Schedule pay rates.
                    (B) Maximum rate of pay.--The rate of pay for the 
                executive director and other personnel shall not exceed 
                the rate payable for level V of the Executive Schedule 
                under section 5316 of title 5, United States Code.
            (4) Detail of government employees.--
                    (A) Federal employees.--
                          (i) In general.--On the request of the 
                      Commission, the head of any Federal agency may 
                      detail, on a reimbursable or nonreimbursable 
                      basis, any of the personnel of the agency to the 
                      Commission to assist the Commission in carrying 
                      out the duties of the Commission under this Act.
                          (ii) Civil service status.--The detail of an 
                      employee under clause (i) shall be without 
                      interruption or loss of civil service status or 
                      privilege.
                    (B) State employees.--The Commission may--
                          (i) accept the services of personnel detailed 
                      from States (including subdivisions of States); 
                      and
                          (ii) reimburse States for services of detailed 
                      personnel.
            (5) Volunteer and uncompensated services.--Notwithstanding 
        section 1342 of title 31, United States Code, the Commission may 
        accept and use voluntary and uncompensated services as the 
        Commission determines necessary.
            (6) Support services.--The Director of the National Park 
        Service shall provide to the Commission, on a reimbursable 
        basis, such administrative support services as the Commission 
        may request.

    (f) Procurement of Temporary and Intermittent Services.--The 
Chairperson of the Commission may procure temporary and intermittent 
services in accordance with section 3109(b) of title 5, United States 
Code, at rates for individuals that do not exceed the daily equivalent 
of the annual rate of basic pay prescribed for level V of the Executive 
Schedule under section 5316 of that title.
    (g) FACA Nonapplicability.--Section 14(b) of the Federal Advisory 
Committee Act (5 U.S.C. App.) shall not apply to the Commission.
    (h) No Effect on Authority.--Nothing in this section supersedes the 
authority of the State, the National Park Service, or the Association 
for the Preservation of Virginia Antiquities, concerning the 
commemoration.
    (i) Termination.--The Commission shall terminate on December 31, 
2008.

SEC. 5. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as are necessary 
to carry out this Act.

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

                          APPENDIX E--H.R. 5660

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Commodity Futures 
Modernization Act of 2000''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Purposes.

                TITLE I--COMMODITY FUTURES MODERNIZATION

Sec. 101. Definitions.
Sec. 102. Agreements, contracts, and transactions in foreign currency, 
           government securities, and certain other commodities.
Sec. 103. Legal certainty for excluded derivative transactions.
Sec. 104. Excluded electronic trading facilities.
Sec. 105. Hybrid instruments; swap transactions.
Sec. 106. Transactions in exempt commodities.
Sec. 107. Application of commodity futures laws.
Sec. 108. Protection of the public interest.
Sec. 109. Prohibited transactions.
Sec. 110. Designation of boards of trade as contract markets.
Sec. 111. Derivatives transaction execution facilities.
Sec. 112. Derivatives clearing.
Sec. 113. Common provisions applicable to registered entities.
Sec. 114. Exempt boards of trade.
Sec. 115. Suspension or revocation of designation as contract market.
Sec. 116. Authorization of appropriations.
Sec. 117. Preemption.
Sec. 118. Predispute resolution agreements for institutional customers.
Sec. 119. Consideration of costs and benefits and antitrust laws.
Sec. 120. Contract enforcement between eligible counterparties.
Sec. 121. Special procedures to encourage and facilitate bona fide 
           hedging by agricultural producers.
Sec. 122. Rule of construction.
Sec. 123. Technical and conforming amendments.
Sec. 124. Privacy.
Sec. 125. Report to Congress.
Sec. 126. International activities of the Commodity Futures Trading 
           Commission.

      TITLE II--COORDINATED REGULATION OF SECURITY FUTURES PRODUCTS

                  Subtitle A--Securities Law Amendments

Sec. 201. Definitions under the Securities Exchange Act of 1934.
Sec. 202. Regulatory relief for markets trading security futures 
           products.
Sec. 203. Regulatory relief for intermediaries trading security futures 
           products.
Sec. 204. Special provisions for interagency cooperation.
Sec. 205. Maintenance of market integrity for security futures products.
Sec. 206. Special provisions for the trading of security futures 
           products.
Sec. 207. Clearance and settlement.
Sec. 208. Amendments relating to registration and disclosure issues 
           under the Securities Act of 1933 and the Securities Exchange 
           Act of 1934.
Sec. 209. Amendments to the Investment Company Act of 1940 and the 
           Investment Advisers Act of 1940.
Sec. 210. Preemption of State laws.

          Subtitle B--Amendments to the Commodity Exchange Act

Sec. 251. Jurisdiction of Securities and Exchange Commission; other 
           provisions.

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

Sec. 252. Application of the Commodity Exchange Act to national 
           securities exchanges and national securities associations 
           that trade security futures.
Sec. 253. Notification of investigations and enforcement actions.

             TITLE III--LEGAL CERTAINTY FOR SWAP AGREEMENTS

Sec. 301. Swap agreement.
Sec. 302. Amendments to the Securities Act of 1933.
Sec. 303. Amendments to the Securities Exchange Act of 1934.
Sec. 304. Savings provision.

          TITLE IV--REGULATORY RESPONSIBILITY FOR BANK PRODUCTS

Sec. 401. Short title.
Sec. 402. Definitions.
Sec. 403. Exclusion of identified banking products commonly offered on 
           or before December 5, 2000.
Sec. 404. Exclusion of certain identified banking products offered by 
           banks after December 5, 2000.
Sec. 405. Exclusion of certain other identified banking products.
Sec. 406. Administration of the predominance test.
Sec. 407. Exclusion of covered swap agreements.
Sec. 408. Contract enforcement.

SEC. 2. PURPOSES.

    The purposes of this Act are--
            (1) to reauthorize the appropriation for the Commodity 
        Futures Trading Commission;
            (2) to streamline and eliminate unnecessary regulation for 
        the commodity futures exchanges and other entities regulated 
        under the Commodity Exchange Act;
            (3) to transform the role of the Commodity Futures Trading 
        Commission to oversight of the futures markets;
            (4) to provide a statutory and regulatory framework for 
        allowing the trading of futures on securities;
            (5) to clarify the jurisdiction of the Commodity Futures 
        Trading Commission over certain retail foreign exchange 
        transactions and bucket shops that may not be otherwise 
        regulated;
            (6) to promote innovation for futures and derivatives and to 
        reduce systemic risk by enhancing legal certainty in the markets 
        for certain futures and derivatives transactions;
            (7) to reduce systemic risk and provide greater stability to 
        markets during times of market disorder by allowing the clearing 
        of transactions in over-the-counter derivatives through 
        appropriately regulated clearing organizations; and
            (8) to enhance the competitive position of United States 
        financial institutions and financial markets.

                TITLE I--COMMODITY FUTURES MODERNIZATION

SEC. 101. DEFINITIONS.

    Section 1a of the Commodity Exchange Act (7 U.S.C. 1a) is amended--
            (1) by redesignating paragraphs (1) through (7), (8) through 
        (12), (13) through (15), and (16) as paragraphs (2) through (8), 
        (16) through (20), (22) through (24), and (28), respectively;
            (2) by inserting before paragraph (2) (as redesignated by 
        paragraph (1)) the following:
            ``(1) Alternative trading system.--The term `alternative 
        trading system' means an organization, association, or group of 
        persons that--

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

                    ``(A) is registered as a broker or dealer pursuant 
                to section 15(b) of the Securities Exchange Act of 1934 
                (except paragraph (11) thereof );
                    ``(B) performs the functions commonly performed by 
                an exchange (as defined in section 3(a)(1) of the 
                Securities Exchange Act of 1934);
                    ``(C) does not--
                          ``(i) set rules governing the conduct of 
                      subscribers other than the conduct of such 
                      subscribers' trading on the alternative trading 
                      system; or
                          ``(ii) discipline subscribers other than by 
                      exclusion from trading; and
                    ``(D) is exempt from the definition of the term 
                `exchange' under such section 3(a)(1) by rule or 
                regulation of the Securities and Exchange Commission on 
                terms that require compliance with regulations of its 
                trading functions.'';
            (3) by striking paragraph (2) (as redesignated by paragraph 
        (1)) and inserting the following:
            ``(2) Board of trade.--The term `board of trade' means any 
        organized exchange or other trading facility.'';
            (4) by inserting after paragraph (8) (as redesignated by 
        paragraph (1)) the following:
            ``(9) Derivatives clearing organization.--
                    ``(A) In general.--The term `derivatives clearing 
                organization' means a clearinghouse, clearing 
                association, clearing corporation, or similar entity, 
                facility, system, or organization that, with respect to 
                an agreement, contract, or transaction--
                          ``(i) enables each party to the agreement, 
                      contract, or transaction to substitute, through 
                      novation or otherwise, the credit of the 
                      derivatives clearing organization for the credit 
                      of the parties;
                          ``(ii) arranges or provides, on a multilateral 
                      basis, for the settlement or netting of 
                      obligations resulting from such agreements, 
                      contracts, or transactions executed by 
                      participants in the derivatives clearing 
                      organization; or
                          ``(iii) otherwise provides clearing services 
                      or arrangements that mutualize or transfer among 
                      participants in the derivatives clearing 
                      organization the credit risk arising from such 
                      agreements, contracts, or transactions executed by 
                      the participants.
                    ``(B) Exclusions.--The term `derivatives clearing 
                organization' does not include an entity, facility, 
                system, or organization solely because it arranges or 
                provides for--
                          ``(i) settlement, netting, or novation of 
                      obligations resulting from agreements, contracts, 
                      or transactions, on a bilateral basis and without 
                      a central counterparty;
                          ``(ii) settlement or netting of cash payments 
                      through an interbank payment system; or
                          ``(iii) settlement, netting, or novation of 
                      obligations resulting from a sale of a commodity 
                      in a transaction in the spot market for the 
                      commodity.
            ``(10) Electronic trading facility.--The term `electronic 
        trading facility' means a trading facility that--

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

                    ``(A) operates by means of an electronic or 
                telecommunications network; and
                    ``(B) maintains an automated audit trail of bids, 
                offers, and the matching of orders or the execution of 
                transactions on the facility.
            ``(11) Eligible commercial entity.--The term `eligible 
        commercial entity' means, with respect to an agreement, contract 
        or transaction in a commodity--
                    ``(A) an eligible contract participant described in 
                clause (i), (ii), (v), (vii), (viii), or (ix) of 
                paragraph (12)(A) that, in connection with its 
                business--
                          ``(i) has a demonstrable ability, directly or 
                      through separate contractual arrangements, to make 
                      or take delivery of the underlying commodity;
                          ``(ii) incurs risks, in addition to price 
                      risk, related to the commodity; or
                          ``(iii) is a dealer that regularly provides 
                      risk management or hedging services to, or engages 
                      in market-making activities with, the foregoing 
                      entities involving transactions to purchase or 
                      sell the commodity or derivative agreements, 
                      contracts, or transactions in the commodity;
                    ``(B) an eligible contract participant, other than a 
                natural person or an instrumentality, department, or 
                agency of a State or local governmental entity, that--
                          ``(i) regularly enters into transactions to 
                      purchase or sell the commodity or derivative 
                      agreements, contracts, or transactions in the 
                      commodity; and
                          ``(ii) either--
                                    ``(I) in the case of a collective 
                                investment vehicle whose participants 
                                include persons other than--
                                            ``(aa) qualified eligible 
                                        persons, as defined in 
                                        Commission rule 4.7(a) (17 CFR 
                                        4.7(a));
                                            ``(bb) accredited investors, 
                                        as defined in Regulation D of 
                                        the Securities and Exchange 
                                        Commission under the Securities 
                                        Act of 1933 (17 CFR 230.501(a)), 
                                        with total assets of $2,000,000; 
                                        or
                                            ``(cc) qualified purchasers, 
                                        as defined in section 
                                        2(a)(51)(A) of the Investment 
                                        Company Act of 1940;
                                in each case as in effect on the date of 
                                the enactment of the Commodity Futures 
                                Modernization Act of 2000, has, or is 
                                one of a group of vehicles under common 
                                control or management having in the 
                                aggregate, $1,000,000,000 in total 
                                assets; or
                                    ``(II) in the case of other persons, 
                                has, or is one of a group of persons 
                                under common control or management 
                                having in the aggregate, $100,000,000 in 
                                total assets; or
                    ``(C) such other persons as the Commission shall 
                determine appropriate and shall designate by rule, 
                regulation, or order.
            ``(12) Eligible contract participant.--The term `eligible 
        contract participant' means--
                    ``(A) acting for its own account--

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

                          ``(i) a financial institution;
                          ``(ii) an insurance company that is regulated 
                      by a State, or that is regulated by a foreign 
                      government and is subject to comparable regulation 
                      as determined by the Commission, including a 
                      regulated subsidiary or affiliate of such an 
                      insurance company;
                          ``(iii) an investment company subject to 
                      regulation under the Investment Company Act of 
                      1940 (15 U.S.C. 80a-1 et seq.) or a foreign person 
                      performing a similar role or function subject as 
                      such to foreign regulation (regardless of whether 
                      each investor in the investment company or the 
                      foreign person is itself an eligible contract 
                      participant);
                          ``(iv) a commodity pool that--
                                    ``(I) has total assets exceeding 
                                $5,000,000; and
                                    ``(II) is formed and operated by a 
                                person subject to regulation under this 
                                Act or a foreign person performing a 
                                similar role or function subject as such 
                                to foreign regulation (regardless of 
                                whether each investor in the commodity 
                                pool or the foreign person is itself an 
                                eligible contract participant);
                          ``(v) a corporation, partnership, 
                      proprietorship, organization, trust, or other 
                      entity--
                                    ``(I) that has total assets 
                                exceeding $10,000,000;
                                    ``(II) the obligations of which 
                                under an agreement, contract, or 
                                transaction are guaranteed or otherwise 
                                supported by a letter of credit or 
                                keepwell, support, or other agreement by 
                                an entity described in subclause (I), in 
                                clause (i), (ii), (iii), (iv), or (vii), 
                                or in subparagraph (C); or
                                    ``(III) that--
                                            ``(aa) has a net worth 
                                        exceeding $1,000,000; and
                                            ``(bb) enters into an 
                                        agreement, contract, or 
                                        transaction in connection with 
                                        the conduct of the entity's 
                                        business or to manage the risk 
                                        associated with an asset or 
                                        liability owned or incurred or 
                                        reasonably likely to be owned or 
                                        incurred by the entity in the 
                                        conduct of the entity's 
                                        business;
                          ``(vi) an employee benefit plan subject to the 
                      Employee Retirement Income Security Act of 1974 
                      (29 U.S.C. 1001 et seq.), a governmental employee 
                      benefit plan, or a foreign person performing a 
                      similar role or function subject as such to 
                      foreign regulation--
                                    ``(I) that has total assets 
                                exceeding $5,000,000; or
                                    ``(II) the investment decisions of 
                                which are made by--
                                            ``(aa) an investment adviser 
                                        or commodity trading advisor 
                                        subject to regulation under the 
                                        Investment Advisers Act of 1940 
                                        (15 U.S.C. 80b-1 et seq.) or 
                                        this Act;
                                            ``(bb) a foreign person 
                                        performing a similar role or 
                                        function subject as such to 
                                        foreign regulation;

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

                                            ``(cc) a financial 
                                        institution; or
                                            ``(dd) an insurance company 
                                        described in clause (ii), or a 
                                        regulated subsidiary or 
                                        affiliate of such an insurance 
                                        company;
                          ``(vii)(I) a governmental entity (including 
                      the United States, a State, or a foreign 
                      government) or political subdivision of a 
                      governmental entity;
                          ``(II) a multinational or supranational 
                      government entity; or
                          ``(III) an instrumentality, agency, or 
                      department of an entity described in subclause (I) 
                      or (II);
                      except that such term does not include an entity, 
                      instrumentality, agency, or department referred to 
                      in subclause (I) or (III) of this clause unless 
                      (aa) the entity, instrumentality, agency, or 
                      department is a person described in clause (i), 
                      (ii), or (iii) of section 1a(11)(A); (bb) the 
                      entity, instrumentality, agency, or department 
                      owns and invests on a discretionary basis 
                      $25,000,000 or more in investments; or (cc) the 
                      agreement, contract, or transaction is offered by, 
                      and entered into with, an entity that is listed in 
                      any of subclauses (I) through (VI) of section 
                      2(c)(2)(B)(ii);
                          ``(viii)(I) a broker or dealer subject to 
                      regulation under the Securities Exchange Act of 
                      1934 (15 U.S.C. 78a et seq.) or a foreign person 
                      performing a similar role or function subject as 
                      such to foreign regulation, except that, if the 
                      broker or dealer or foreign person is a natural 
                      person or proprietorship, the broker or dealer or 
                      foreign person shall not be considered to be an 
                      eligible contract participant unless the broker or 
                      dealer or foreign person also meets the 
                      requirements of clause (v) or (xi);
                          ``(II) an associated person of a registered 
                      broker or dealer concerning the financial or 
                      securities activities of which the registered 
                      person makes and keeps records under section 
                      15C(b) or 17(h) of the Securities Exchange Act of 
                      1934 (15 U.S.C. 78o-5(b), 78q(h));
                          ``(III) an investment bank holding company (as 
                      defined in section 17(i) of the Securities 
                      Exchange Act of 1934 (15 U.S.C. 78q(i));
                          ``(ix) a futures commission merchant subject 
                      to regulation under this Act or a foreign person 
                      performing a similar role or function subject as 
                      such to foreign regulation, except that, if the 
                      futures commission merchant or foreign person is a 
                      natural person or proprietorship, the futures 
                      commission merchant or foreign person shall not be 
                      considered to be an eligible contract participant 
                      unless the futures commission merchant or foreign 
                      person also meets the requirements of clause (v) 
                      or (xi);
                          ``(x) a floor broker or floor trader subject 
                      to regulation under this Act in connection with 
                      any transaction that takes place on or through the 
                      facilities of a registered entity or an exempt 
                      board of trade, or any affiliate thereof, on which 
                      such person regularly trades; or

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

                          ``(xi) an individual who has total assets in 
                      an amount in excess of--
                                    ``(I) $10,000,000; or
                                    ``(II) $5,000,000 and who enters 
                                into the agreement, contract, or 
                                transaction in order to manage the risk 
                                associated with an asset owned or 
                                liability incurred, or reasonably likely 
                                to be owned or incurred, by the 
                                individual;
                    ``(B)(i) a person described in clause (i), (ii), 
                (iv), (v), (viii), (ix), or (x) of subparagraph (A) or 
                in subparagraph (C), acting as broker or performing an 
                equivalent agency function on behalf of another person 
                described in subparagraph (A) or (C); or
                    ``(ii) an investment adviser subject to regulation 
                under the Investment Advisers Act of 1940, a commodity 
                trading advisor subject to regulation under this Act, a 
                foreign person performing a similar role or function 
                subject as such to foreign regulation, or a person 
                described in clause (i), (ii), (iv), (v), (viii), (ix), 
                or (x) of subparagraph (A) or in subparagraph (C), in 
                any such case acting as investment manager or fiduciary 
                (but excluding a person acting as broker or performing 
                an equivalent agency function) for another person 
                described in subparagraph (A) or (C) and who is 
                authorized by such person to commit such person to the 
                transaction; or
                    ``(C) any other person that the Commission 
                determines to be eligible in light of the financial or 
                other qualifications of the person.
            ``(13) Excluded commodity.--The term `excluded commodity' 
        means--
                          ``(i) an interest rate, exchange rate, 
                      currency, security, security index, credit risk or 
                      measure, debt or equity instrument, index or 
                      measure of inflation, or other macroeconomic index 
                      or measure;
                          ``(ii) any other rate, differential, index, or 
                      measure of economic or commercial risk, return, or 
                      value that is--
                                    ``(I) not based in substantial part 
                                on the value of a narrow group of 
                                commodities not described in clause (i); 
                                or
                                    ``(II) based solely on one or more 
                                commodities that have no cash market;
                          ``(iii) any economic or commercial index based 
                      on prices, rates, values, or levels that are not 
                      within the control of any party to the relevant 
                      contract, agreement, or transaction; or
                          ``(iv) an occurrence, extent of an occurrence, 
                      or contingency (other than a change in the price, 
                      rate, value, or level of a commodity not described 
                      in clause (i)) that is--
                                    ``(I) beyond the control of the 
                                parties to the relevant contract, 
                                agreement, or transaction; and
                                    ``(II) associated with a financial, 
                                commercial, or economic consequence.
            ``(14) Exempt commodity.--The term `exempt commodity' means 
        a commodity that is not an excluded commodity or an agricultural 
        commodity.

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

            ``(15) Financial institution.--The term `financial 
        institution' means--
                    ``(A) a corporation operating under the fifth 
                undesignated paragraph of section 25 of the Federal 
                Reserve Act (12 U.S.C. 603), commonly known as `an 
                agreement corporation';
                    ``(B) a corporation organized under section 25A of 
                the Federal Reserve Act (12 U.S.C. 611 et seq.), 
                commonly known as an `Edge Act corporation';
                    ``(C) an institution that is regulated by the Farm 
                Credit Administration;
                    ``(D) a Federal credit union or State credit union 
                (as defined in section 101 of the Federal Credit Union 
                Act (12 U.S.C. 1752));
                    ``(E) a depository institution (as defined in 
                section 3 of the Federal Deposit Insurance Act (12 
                U.S.C. 1813));
                    ``(F) a foreign bank or a branch or agency of a 
                foreign bank (each as defined in section 1(b) of the 
                International Banking Act of 1978 (12 U.S.C. 3101(b)));
                    ``(G) any financial holding company (as defined in 
                section 2 of the Bank Holding Company Act of 1956);
                    ``(H) a trust company; or
                    ``(I) a similarly regulated subsidiary or affiliate 
                of an entity described in any of subparagraphs (A) 
                through (H).'';
            (5) by inserting after paragraph (20) (as redesignated by 
        paragraph (1)) the following:
            ``(21) Hybrid instrument.--The term `hybrid instrument' 
        means a security having one or more payments indexed to the 
        value, level, or rate of, or providing for the delivery of, one 
        or more commodities.'';
            (6) by striking paragraph (24) (as redesignated by paragraph 
        (1)) and inserting the following:
            ``(24) Member of a contract market; member of a derivatives 
        transaction execution facility.--The term `member' means, with 
        respect to a contract market or derivatives transaction 
        execution facility, an individual, association, partnership, 
        corporation, or trust--
                    ``(A) owning or holding membership in, or admitted 
                to membership representation on, the contract market or 
                derivatives transaction execution facility; or
                    ``(B) having trading privileges on the contract 
                market or derivatives transaction execution facility.
            ``(25) Narrow-based security index.--
                    ``(A) The term `narrow-based security index' means 
                an index--
                          ``(i) that has 9 or fewer component 
                      securities;
                          ``(ii) in which a component security comprises 
                      more than 30 percent of the index's weighting;
                          ``(iii) in which the five highest weighted 
                      component securities in the aggregate comprise 
                      more than 60 percent of the index's weighting; or
                          ``(iv) in which the lowest weighted component 
                      securities comprising, in the aggregate, 25 
                      percent of the index's weighting have an aggregate 
                      dollar value of average daily trading volume of 
                      less than $50,000,000 (or in the case of an index 
                      with 15 or more component securities, 
                      $30,000,000), except that if there are two

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

                      or more securities with equal weighting that could 
                      be included in the calculation of the lowest 
                      weighted component securities comprising, in the 
                      aggregate, 25 percent of the index's weighting, 
                      such securities shall be ranked from lowest to 
                      highest dollar value of average daily trading 
                      volume and shall be included in the calculation 
                      based on their ranking starting with the lowest 
                      ranked security.
                    ``(B) Notwithstanding subparagraph (A), an index is 
                not a narrow-based security index if--
                          ``(i)(I) it has at least 9 component 
                      securities;
                          ``(II) no component security comprises more 
                      than 30 percent of the index's weighting; and
                          ``(III) each component security is--
                                    ``(aa) registered pursuant to 
                                section 12 of the Securities Exchange 
                                Act of 1934;
                                    ``(bb) one of 750 securities with 
                                the largest market capitalization; and
                                    ``(cc) one of 675 securities with 
                                the largest dollar value of average 
                                daily trading volume;
                          ``(ii) a board of trade was designated as a 
                      contract market by the Commodity Futures Trading 
                      Commission with respect to a contract of sale for 
                      future delivery on the index, before the date of 
                      the enactment of the Commodity Futures 
                      Modernization Act of 2000;
                          ``(iii)(I) a contract of sale for future 
                      delivery on the index traded on a designated 
                      contract market or registered derivatives 
                      transaction execution facility for at least 30 
                      days as a contract of sale for future delivery on 
                      an index that was not a narrow-based security 
                      index; and
                          ``(II) it has been a narrow-based security 
                      index for no more than 45 business days over 3 
                      consecutive calendar months;
                          ``(iv) a contract of sale for future delivery 
                      on the index is traded on or subject to the rules 
                      of a foreign board of trade and meets such 
                      requirements as are jointly established by rule or 
                      regulation by the Commission and the Securities 
                      and Exchange Commission;
                          ``(v) no more than 18 months have passed since 
                      the date of the enactment of the Commodity Futures 
                      Modernization Act of 2000 and--
                                    ``(I) it is traded on or subject to 
                                the rules of a foreign board of trade;
                                    ``(II) the offer and sale in the 
                                United States of a contract of sale for 
                                future delivery on the index was 
                                authorized before the date of the 
                                enactment of the Commodity Futures 
                                Modernization Act of 2000; and
                                    ``(III) the conditions of such 
                                authorization continue to be met; or
                          ``(vi) a contract of sale for future delivery 
                      on the index is traded on or subject to the rules 
                      of a board of trade and meets such requirements as 
                      are jointly established by rule, regulation, or 
                      order by the Commission and the Securities and 
                      Exchange Commission.

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

                    ``(C) Within 1 year after the date of the enactment 
                of the Commodity Futures Modernization Act of 2000, the 
                Commission and the Securities and Exchange Commission 
                jointly shall adopt rules or regulations that set forth 
                the requirements under subparagraph (B)(iv).
                    ``(D) An index that is a narrow-based security index 
                solely because it was a narrow-based security index for 
                more than 45 business days over 3 consecutive calendar 
                months pursuant to clause (iii) of subparagraph (B) 
                shall not be a narrow-based security index for the 3 
                following calendar months.
                    ``(E) For purposes of subparagraphs (A) and (B)--
                          ``(i) the dollar value of average daily 
                      trading volume and the market capitalization shall 
                      be calculated as of the preceding 6 full calendar 
                      months; and
                          ``(ii) the Commission and the Securities and 
                      Exchange Commission shall, by rule or regulation, 
                      jointly specify the method to be used to determine 
                      market capitalization and dollar value of average 
                      daily trading volume.
            ``(26) Option.--The term `option' means an agreement, 
        contract, or transaction that is of the character of, or is 
        commonly known to the trade as, an `option', `privilege', 
        `indemnity', `bid', `offer', `put', `call', `advance guaranty', 
        or `decline guaranty'.
            ``(27) Organized exchange.--The term `organized exchange' 
        means a trading facility that--
                    ``(A) permits trading--
                          ``(i) by or on behalf of a person that is not 
                      an eligible contract participant; or
                          ``(ii) by persons other than on a principal-
                      to-principal basis; or
                    ``(B) has adopted (directly or through another 
                nongovernmental entity) rules that--
                          ``(i) govern the conduct of participants, 
                      other than rules that govern the submission of 
                      orders or execution of transactions on the trading 
                      facility; and
                          ``(ii) include disciplinary sanctions other 
                      than the exclusion of participants from 
                      trading.''; and
            (7) by adding at the end the following:
            ``(29) Registered entity.--The term `registered entity' 
        means--
                    ``(A) a board of trade designated as a contract 
                market under section 5;
                    ``(B) a derivatives transaction execution facility 
                registered under section 5a;
                    ``(C) a derivatives clearing organization registered 
                under section 5b; and
                    ``(D) a board of trade designated as a contract 
                market under section 5f.
            ``(30) Security.--The term `security' means a security as 
        defined in section 2(a)(1) of the Securities Act of 1933 (15 
        U.S.C. 77b(a)(1)) or section 3(a)(10) of the Securities Exchange 
        Act of 1934 (15 U.S.C. 78c(a)(10)).
            ``(31) Security future.--The term `security future' means a 
        contract of sale for future delivery of a single security or of 
        a narrow-based security index, including any interest therein or 
        based on the value thereof, except an exempted security

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

        under section 3(a)(12) of the Securities Exchange Act of 1934 as 
        in effect on the date of the enactment of the Futures Trading 
        Act of 1982 (other than any municipal security as defined in 
        section 3(a)(29) of the Securities Exchange Act of 1934 as in 
        effect on the date of the enactment of the Futures Trading Act 
        of 1982). The term `security future' does not include any 
        agreement, contract, or transaction excluded from this Act under 
        section 2(c), 2(d), 2(f ), or 2(g) of this Act (as in effect on 
        the date of the enactment of the Commodity Futures Modernization 
        Act of 2000) or title IV of the Commodity Futures Modernization 
        Act of 2000.
            ``(32) Security futures product.--The term `security futures 
        product' means a security future or any put, call, straddle, 
        option, or privilege on any security future.
            ``(33) Trading facility.--
                    ``(A) In general.--The term `trading facility' means 
                a person or group of persons that constitutes, 
                maintains, or provides a physical or electronic facility 
                or system in which multiple participants have the 
                ability to execute or trade agreements, contracts, or 
                transactions by accepting bids and offers made by other 
                participants that are open to multiple participants in 
                the facility or system.
                    ``(B) Exclusions.--The term `trading facility' does 
                not include--
                          ``(i) a person or group of persons solely 
                      because the person or group of persons 
                      constitutes, maintains, or provides an electronic 
                      facility or system that enables participants to 
                      negotiate the terms of and enter into bilateral 
                      transactions as a result of communications 
                      exchanged by the parties and not from interaction 
                      of multiple bids and multiple offers within a 
                      predetermined, nondiscretionary automated trade 
                      matching and execution algorithm;
                          ``(ii) a government securities dealer or 
                      government securities broker, to the extent that 
                      the dealer or broker executes or trades 
                      agreements, contracts, or transactions in 
                      government securities, or assists persons in 
                      communicating about, negotiating, entering into, 
                      executing, or trading an agreement, contract, or 
                      transaction in government securities (as the terms 
                      `government securities dealer', `government 
                      securities broker', and `government securities' 
                      are defined in section 3(a) of the Securities 
                      Exchange Act of 1934 (15 U.S.C. 78c(a))); or
                          ``(iii) facilities on which bids and offers, 
                      and acceptances of bids and offers effected on the 
                      facility, are not binding.
                Any person, group of persons, dealer, broker, or 
                facility described in clause (i) or (ii) is excluded 
                from the meaning of the term `trading facility' for the 
                purposes of this Act without any prior specific 
                approval, certification, or other action by the 
                Commission.
                    ``(C) Special rule.--A person or group of persons 
                that would not otherwise constitute a trading facility 
                shall not be considered to be a trading facility solely 
                as a result of the submission to a derivatives clearing 
                organization

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

                of transactions executed on or through the person or 
                group of persons.''.

SEC. 102. AGREEMENTS, CONTRACTS, AND TRANSACTIONS IN FOREIGN CURRENCY, 
            GOVERNMENT SECURITIES, AND CERTAIN OTHER COMMODITIES.

    Section 2 of the Commodity Exchange Act (7 U.S.C. 2, 2a, 3, 4, 4a) 
is amended by adding at the end the following:
    ``(c) Agreements, Contracts, and Transactions in Foreign Currency, 
Government Securities, and Certain Other Commodities.--
            ``(1) In general.--Except as provided in paragraph (2), 
        nothing in this Act (other than section 5a (to the extent 
        provided in section 5a(g)), 5b, 5d, or 12(e)(2)(B)) governs or 
        applies to an agreement, contract, or transaction in--
                    ``(A) foreign currency;
                    ``(B) government securities;
                    ``(C) security warrants;
                    ``(D) security rights;
                    ``(E) resales of installment loan contracts;
                    ``(F) repurchase transactions in an excluded 
                commodity; or
                    ``(G) mortgages or mortgage purchase commitments.
            ``(2) Commission jurisdiction.--
                    ``(A) Agreements, contracts, and transactions traded 
                on an organized exchange.--This Act applies to, and the 
                Commission shall have jurisdiction over, an agreement, 
                contract, or transaction described in paragraph (1) that 
                is--
                          ``(i) a contract of sale of a commodity for 
                      future delivery (or an option on such a contract), 
                      or an option on a commodity (other than foreign 
                      currency or a security or a group or index of 
                      securities), that is executed or traded on an 
                      organized exchange; or
                          ``(ii) an option on foreign currency executed 
                      or traded on an organized exchange that is not a 
                      national securities exchange registered pursuant 
                      to section 6(a) of the Securities Exchange Act of 
                      1934.
                    ``(B) Agreements, contracts, and transactions in 
                retail foreign currency.--This Act applies to, and the 
                Commission shall have jurisdiction over, an agreement, 
                contract, or transaction in foreign currency that--
                          ``(i) is a contract of sale of a commodity for 
                      future delivery (or an option on such a contract) 
                      or an option (other than an option executed or 
                      traded on a national securities exchange 
                      registered pursuant to section 6(a) of the 
                      Securities Exchange Act of 1934); and
                          ``(ii) is offered to, or entered into with, a 
                      person that is not an eligible contract 
                      participant, unless the counterparty, or the 
                      person offering to be the counterparty, of the 
                      person is--
                                    ``(I) a financial institution;
                                    ``(II) a broker or dealer registered 
                                under section 15(b) or 15C of the 
                                Securities Exchange Act of 1934 (15 
                                U.S.C. 78o(b), 78o-5) or a futures 
                                commission merchant registered under 
                                this Act;

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

                                    ``(III) an associated person of a 
                                broker or dealer registered under 
                                section 15(b) or 15C of the Securities 
                                Exchange Act of 1934 (15 U.S.C. 78o(b), 
                                78o-5), or an affiliated person of a 
                                futures commission merchant registered 
                                under this Act, concerning the financial 
                                or securities activities of which the 
                                registered person makes and keeps 
                                records under section 15C(b) or 17(h) of 
                                the Securities Exchange Act of 1934 (15 
                                U.S.C. 78o-5(b), 78q(h)) or section 
                                4f(c)(2)(B) of this Act;
                                    ``(IV) an insurance company 
                                described in section 1a(12)(A)(ii) of 
                                this Act, or a regulated subsidiary or 
                                affiliate of such an insurance company;
                                    ``(V) a financial holding company 
                                (as defined in section 2 of the Bank 
                                Holding Company Act of 1956); or
                                    ``(VI) an investment bank holding 
                                company (as defined in section 17(i) of 
                                the Securities Exchange Act of 1934).
                    ``(C) Notwithstanding subclauses (II) and (III) of 
                subparagraph (B)(ii), agreements, contracts, or 
                transactions described in subparagraph (B) shall be 
                subject to sections 4b, 4c(b), 6(c) and 6(d) (to the 
                extent that sections 6(c) and 6(d) prohibit manipulation 
                of the market price of any commodity, in interstate 
                commerce, or for future delivery on or subject to the 
                rules of any market), 6c, 6d, and 8(a) if they are 
                entered into by a futures commission merchant or an 
                affiliate of a futures commission merchant that is not 
                also an entity described in subparagraph (B)(ii) of this 
                paragraph.''.

SEC. 103. LEGAL CERTAINTY FOR EXCLUDED DERIVATIVE TRANSACTIONS.

    Section 2 of the Commodity Exchange Act (7 U.S.C. 2, 2a, 3, 4, 4a) 
is further amended by adding at the end the following:
    ``(d) Excluded Derivative Transactions.--
            ``(1) In general.--Nothing in this Act (other than section 
        5b or 12(e)(2)(B) governs or applies to an agreement, contract, 
        or transaction in an excluded commodity if--
                    ``(A) the agreement, contract, or transaction is 
                entered into only between persons that are eligible 
                contract participants at the time at which the persons 
                enter into the agreement, contract, or transaction; and
                    ``(B) the agreement, contract, or transaction is not 
                executed or traded on a trading facility.
            ``(2) Electronic trading facility exclusion.--Nothing in 
        this Act (other than section 5a (to the extent provided in 
        section 5a(g)), 5b, 5d, or 12(e)(2)(B)) governs or applies to an 
        agreement, contract, or transaction in an excluded commodity 
        if--
                    ``(A) the agreement, contract, or transaction is 
                entered into on a principal-to-principal basis between 
                parties trading for their own accounts or as described 
                in section 1a(12)(B)(ii);

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

                    ``(B) the agreement, contract, or transaction is 
                entered into only between persons that are eligible 
                contract participants described in subparagraph (A), 
                (B)(ii), or (C) of section 1a(12)) at the time at which 
                the persons enter into the agreement, contract, or 
                transaction; and
                    ``(C) the agreement, contract, or transaction is 
                executed or traded on an electronic trading facility.''.

SEC. 104. EXCLUDED ELECTRONIC TRADING FACILITIES.

    Section 2 of the Commodity Exchange Act (7 U.S.C. 2, 2a, 3, 4, 4a) 
is further amended by adding at the end the following:
    ``(e) Excluded Electronic Trading Facilities.--
            ``(1) In general.--Nothing in this Act (other than section 
        12(e)(2)(B)) governs or is applicable to an electronic trading 
        facility that limits transactions authorized to be conducted on 
        its facilities to those satisfying the requirements of section 
        2(d)(2), 2(g), or 2(h)(3).
            ``(2) Effect on authority to establish and operate.--Nothing 
        in this Act shall prohibit a board of trade designated by the 
        Commission as a contract market or derivatives transaction 
        execution facility, or operating as an exempt board of trade 
        from establishing and operating an electronic trading facility 
        excluded under this Act pursuant to paragraph (1).
            ``(3) Effect on transactions.--No failure by an electronic 
        trading facility to limit transactions as required by paragraph 
        (1) of this subsection or to comply with section 2(h)(5) shall 
        in itself affect the legality, validity, or enforceability of an 
        agreement, contract, or transaction entered into or traded on 
        the electronic trading facility or cause a participant on the 
        system to be in violation of this Act.
            ``(4) Special rule.--A person or group of persons that would 
        not otherwise constitute a trading facility shall not be 
        considered to be a trading facility solely as a result of the 
        submission to a derivatives clearing organization of 
        transactions executed on or through the person or group of 
        persons.''.

SEC. 105. HYBRID INSTRUMENTS; SWAP TRANSACTIONS.

    (a) Hybrid Instruments.--Section 2 of the Commodity Exchange Act (7 
U.S.C. 2, 2a, 3, 4, 4a) is further amended by adding at the end the 
following:
    ``(f ) Exclusion for Qualifying Hybrid Instruments.--
            ``(1) In general.--Nothing in this Act (other than section 
        12(e)(2)(B)) governs or is applicable to a hybrid instrument 
        that is predominantly a security.
            ``(2) Predominance.--A hybrid instrument shall be considered 
        to be predominantly a security if--
                    ``(A) the issuer of the hybrid instrument receives 
                payment in full of the purchase price of the hybrid 
                instrument, substantially contemporaneously with 
                delivery of the hybrid instrument;
                    ``(B) the purchaser or holder of the hybrid 
                instrument is not required to make any payment to the 
                issuer in addition to the purchase price paid under 
                subparagraph (A), whether as margin, settlement payment, 
                or otherwise, during the life of the hybrid instrument 
                or at maturity;
                    ``(C) the issuer of the hybrid instrument is not 
                subject by the terms of the instrument to mark-to-market 
                margining requirements; and

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

                    ``(D) the hybrid instrument is not marketed as a 
                contract of sale of a commodity for future delivery (or 
                option on such a contract) subject to this Act.
            ``(3) Mark-to-market margining requirements.--For the 
        purposes of paragraph (2)(C), mark-to-market margining 
        requirements do not include the obligation of an issuer of a 
        secured debt instrument to increase the amount of collateral 
        held in pledge for the benefit of the purchaser of the secured 
        debt instrument to secure the repayment obligations of the 
        issuer under the secured debt instrument.''.

    (b) Swap Transactions.--Section 2 of the Commodity Exchange Act (7 
U.S.C. 2, 2a, 3, 4, 4a) is further amended by adding at the end the 
following:
    ``(g) Excluded Swap Transactions.--No provision of this Act (other 
than section 5a (to the extent provided in section 5a(g)), 5b, 5d, or 
12(e)(2)) shall apply to or govern any agreement, contract, or 
transaction in a commodity other than an agricultural commodity if the 
agreement, contract, or transaction is--
            ``(1) entered into only between persons that are eligible 
        contract participants at the time they enter into the agreement, 
        contract, or transaction;
            ``(2) subject to individual negotiation by the parties; and
            ``(3) not executed or traded on a trading facility.''.

    (c) Study Regarding Retail Swaps.--
            (1) In general.--The Board of Governors of the Federal 
        Reserve System, the Secretary of the Treasury, the Commodity 
        Futures Trading Commission, and the Securities and Exchange 
        Commission shall conduct a study of issues involving the 
        offering of swap agreements to persons other than eligible 
        contract participants (as defined in section 1a of the Commodity 
        Exchange Act).
            (2) Matters to be addressed.--The study shall address--
                    (A) the potential uses of swap agreements by persons 
                other than eligible contract participants;
                    (B) the extent to which financial institutions are 
                willing to offer swap agreements to persons other than 
                eligible contract participants;
                    (C) the appropriate regulatory structure to address 
                customer protection issues that may arise in connection 
                with the offer of swap agreements to persons other than 
                eligible contract participants; and
                    (D) such other relevant matters deemed necessary or 
                appropriate to address.
            (3) Report.--Before the end of the 1-year period beginning 
        on the date of the enactment of this Act, a report on the 
        findings and conclusions of the study required by paragraph (1) 
        shall be submitted to Congress, together with such 
        recommendations for legislative action as are deemed necessary 
        and appropriate.

SEC. 106. TRANSACTIONS IN EXEMPT COMMODITIES.

    Section 2 of the Commodity Exchange Act (7 U.S.C. 2, 2a, 3, 4, 4a) 
is further amended by adding at the end the following:
    ``(h) Legal Certainty for Certain Transactions in Exempt 
Commodities.--

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

            ``(1) Except as provided in paragraph (2), nothing in this 
        Act shall apply to a contract, agreement, or transaction in an 
        exempt commodity which--
                    ``(A) is entered into solely between persons that 
                are eligible contract participants at the time the 
                persons enter into the agreement, contract, or 
                transaction; and
                    ``(B) is not entered into on a trading facility.
            ``(2) An agreement, contract, or transaction described in 
        paragraph (1) of this subsection shall be subject to--
                    ``(A) sections 5b and 12(e)(2)(B);
                    ``(B) sections 4b, 4o, 6(c), 6(d), 6c, 6d, and 8a, 
                and the regulations of the Commission pursuant to 
                section 4c(b) proscribing fraud in connection with 
                commodity option transactions, to the extent the 
                agreement, contract, or transaction is not between 
                eligible commercial entities (unless one of the entities 
                is an instrumentality, department, or agency of a State 
                or local governmental entity) and would otherwise be 
                subject to such sections and regulations; and
                    ``(C) sections 6(c), 6(d), 6c, 6d, 8a, and 9(a)(2), 
                to the extent such sections prohibit manipulation of the 
                market price of any commodity in interstate commerce and 
                the agreement, contract, or transaction would otherwise 
                be subject to such sections.
            ``(3) Except as provided in paragraph (4), nothing in this 
        Act shall apply to an agreement, contract, or transaction in an 
        exempt commodity which is--
                    ``(A) entered into on a principal-to-principal basis 
                solely between persons that are eligible commercial 
                entities at the time the persons enter into the 
                agreement, contract, or transaction; and
                    ``(B) executed or traded on an electronic trading 
                facility.
            ``(4) An agreement, contract, or transaction described in 
        paragraph (3) of this subsection shall be subject to--
                    ``(A) sections 5a (to the extent provided in section 
                5a(g)), 5b, 5d, and 12(e)(2)(B);
                    ``(B) sections 4b and 4o and the regulations of the 
                Commission pursuant to section 4c(b) proscribing fraud 
                in connection with commodity option transactions to the 
                extent the agreement, contract, or transaction would 
                otherwise be subject to such sections and regulations;
                    ``(C) sections 6(c) and 9(a)(2), to the extent such 
                sections prohibit manipulation of the market price of 
                any commodity in interstate commerce and to the extent 
                the agreement, contract, or transaction would otherwise 
                be subject to such sections; and
                    ``(D) such rules and regulations as the Commission 
                may prescribe if necessary to ensure timely 
                dissemination by the electronic trading facility of 
                price, trading volume, and other trading data to the 
                extent appropriate, if the Commission determines that 
                the electronic trading facility performs a significant 
                price discovery function for transactions in the cash 
                market for the commodity underlying any agreement, 
                contract, or transaction executed or traded on the 
                electronic trading facility.
            ``(5) An electronic trading facility relying on the 
        exemption provided in paragraph (3) shall--

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

                    ``(A) notify the Commission of its intention to 
                operate an electronic trading facility in reliance on 
                the exemption set forth in paragraph (3), which notice 
                shall include--
                          ``(i) the name and address of the facility and 
                      a person designated to receive communications from 
                      the Commission;
                          ``(ii) the commodity categories that the 
                      facility intends to list or otherwise make 
                      available for trading on the facility in reliance 
                      on the exemption set forth in paragraph (3);
                          ``(iii) certifications that--
                                    ``(I) no executive officer or member 
                                of the governing board of, or any holder 
                                of a 10 percent or greater equity 
                                interest in, the facility is a person 
                                described in any of subparagraphs (A) 
                                through (H) of section 8a(2);
                                    ``(II) the facility will comply with 
                                the conditions for exemption under this 
                                paragraph; and
                                    ``(III) the facility will notify the 
                                Commission of any material change in the 
                                information previously provided by the 
                                facility to the Commission pursuant to 
                                this paragraph; and
                          ``(iv) the identity of any derivatives 
                      clearing organization to which the facility 
                      transmits or intends to transmit transaction data 
                      for the purpose of facilitating the clearance and 
                      settlement of transactions conducted on the 
                      facility in reliance on the exemption set forth in 
                      paragraph (3);
                    ``(B)(i)(I) provide the Commission with access to 
                the facility's trading protocols and electronic access 
                to the facility with respect to transactions conducted 
                in reliance on the exemption set forth in paragraph (3); 
                or
                    ``(II) provide such reports to the Commission 
                regarding transactions executed on the facility in 
                reliance on the exemption set forth in paragraph (3) as 
                the Commission may from time to time request to enable 
                the Commission to satisfy its obligations under this 
                Act;
                    ``(ii) maintain for 5 years, and make available for 
                inspection by the Commission upon request, records of 
                activities related to its business as an electronic 
                trading facility exempt under paragraph (3), including--
                          ``(I) information relating to data entry and 
                      transaction details sufficient to enable the 
                      Commission to reconstruct trading activity on the 
                      facility conducted in reliance on the exemption 
                      set forth in paragraph (3); and
                          ``(II) the name and address of each 
                      participant on the facility authorized to enter 
                      into transactions in reliance on the exemption set 
                      forth in paragraph (3); and
                    ``(iii) upon special call by the Commission, provide 
                to the Commission, in a form and manner and within the 
                period specified in the special call, such information 
                related to its business as an electronic trading 
                facility exempt under paragraph (3), including 
                information relating to data entry and transaction 
                details in respect of transactions entered into in 
                reliance on the exemption set forth in

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

                paragraph (3), as the Commission may determine 
                appropriate--
                          ``(I) to enforce the provisions specified in 
                      subparagraphs (B) and (C) of paragraph (4);
                          ``(II) to evaluate a systemic market event; or
                          ``(III) to obtain information requested by a 
                      Federal financial regulatory authority in order to 
                      enable the regulator to fulfill its regulatory or 
                      supervisory responsibilities;
                    ``(C)(i) upon receipt of any subpoena issued by or 
                on behalf of the Commission to any foreign person who 
                the Commission believes is conducting or has conducted 
                transactions in reliance on the exemption set forth in 
                paragraph (3) on or through the electronic trading 
                facility relating to the transactions, promptly notify 
                the foreign person of, and transmit to the foreign 
                person, the subpoena in a manner reasonable under the 
                circumstances, or as specified by the Commission; and
                    ``(ii) if the Commission has reason to believe that 
                a person has not timely complied with a subpoena issued 
                by or on behalf of the Commission pursuant to clause 
                (i), and the Commission in writing has directed that a 
                facility relying on the exemption set forth in paragraph 
                (3) deny or limit further transactions by the person, 
                the facility shall deny that person further trading 
                access to the facility or, as applicable, limit that 
                person's access to the facility for liquidation trading 
                only;
                    ``(D) comply with the requirements of this paragraph 
                applicable to the facility and require that each 
                participant, as a condition of trading on the facility 
                in reliance on the exemption set forth in paragraph (3), 
                agree to comply with all applicable law;
                    ``(E) have a reasonable basis for believing that 
                participants authorized to conduct transactions on the 
                facility in reliance on the exemption set forth in 
                paragraph (3) are eligible commercial entities; and
                    ``(F) not represent to any person that the facility 
                is registered with, or designated, recognized, licensed, 
                or approved by the Commission.
            ``(6) A person named in a subpoena referred to in paragraph 
        (5)(C) that believes the person is or may be adversely affected 
        or aggrieved by action taken by the Commission under this 
        section, shall have the opportunity for a prompt hearing after 
        the Commission acts under procedures that the Commission shall 
        establish by rule, regulation, or order.''.

SEC. 107. APPLICATION OF COMMODITY FUTURES LAWS.

    Section 2 of the Commodity Exchange Act (7 U.S.C. 2, 2a, 3, 4, 4a) 
is further amended by adding at the end the following:
    ``(i) Application of Commodity Futures Laws.--
            ``(1) No provision of this Act shall be construed as 
        implying or creating any presumption that--
                    ``(A) any agreement, contract, or transaction that 
                is excluded from this Act under section 2(c), 2(d), 
                2(e), 2(f ), or 2(g) of this Act or title IV of the 
                Commodity Futures Modernization Act of 2000, or exempted 
                under section 2(h) or 4(c) of this Act; or

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

                    ``(B) any agreement, contract, or transaction, not 
                otherwise subject to this Act, that is not so excluded 
                or exempted,
        is or would otherwise be subject to this Act.
            ``(2) No provision of, or amendment made by, the Commodity 
        Futures Modernization Act of 2000 shall be construed as 
        conferring jurisdiction on the Commission with respect to any 
        such agreement, contract, or transaction, except as expressly 
        provided in section 5a of this Act (to the extent provided in 
        section 5a(g) of this Act), 5b of this Act, or 5d of this 
        Act.''.

SEC. 108. PROTECTION OF THE PUBLIC INTEREST.

    The Commodity Exchange Act is amended by striking section 3 (7 
U.S.C. 5) and inserting the following:

``SEC. 3. FINDINGS AND PURPOSE.

    ``(a) Findings.--The transactions subject to this Act are entered 
into regularly in interstate and international commerce and are affected 
with a national public interest by providing a means for managing and 
assuming price risks, discovering prices, or disseminating pricing 
information through trading in liquid, fair and financially secure 
trading facilities.
    ``(b) Purpose.--It is the purpose of this Act to serve the public 
interests described in subsection (a) through a system of effective 
self-regulation of trading facilities, clearing systems, market 
participants and market professionals under the oversight of the 
Commission. To foster these public interests, it is further the purpose 
of this Act to deter and prevent price manipulation or any other 
disruptions to market integrity; to ensure the financial integrity of 
all transactions subject to this Act and the avoidance of systemic risk; 
to protect all market participants from fraudulent or other abusive 
sales practices and misuses of customer assets; and to promote 
responsible innovation and fair competition among boards of trade, other 
markets and market participants.''.

SEC. 109. PROHIBITED TRANSACTIONS.

    Section 4c of the Commodity Exchange Act (7 U.S.C. 6c) is amended by 
striking ``Sec. 4c.'' and all that follows through subsection (a) and 
inserting the following:

``SEC. 4c. PROHIBITED TRANSACTIONS.

    ``(a) In General.--
            ``(1) Prohibition.--It shall be unlawful for any person to 
        offer to enter into, enter into, or confirm the execution of a 
        transaction described in paragraph (2) involving the purchase or 
        sale of any commodity for future delivery (or any option on such 
        a transaction or option on a commodity) if the transaction is 
        used or may be used to--
                    ``(A) hedge any transaction in interstate commerce 
                in the commodity or the product or byproduct of the 
                commodity;
                    ``(B) determine the price basis of any such 
                transaction in interstate commerce in the commodity; or
                    ``(C) deliver any such commodity sold, shipped, or 
                received in interstate commerce for the execution of the 
                transaction.
            ``(2) Transaction.--A transaction referred to in paragraph 
        (1) is a transaction that--

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

                    ``(A)(i) is, of the character of, or is commonly 
                known to the trade as, a `wash sale' or `accommodation 
                trade'; or
                    ``(ii) is a fictitious sale; or
                    ``(B) is used to cause any price to be reported, 
                registered, or recorded that is not a true and bona fide 
                price.''.

SEC. 110. DESIGNATION OF BOARDS OF TRADE AS CONTRACT MARKETS.

    The Commodity Exchange Act is amended--
            (1) by redesignating section 5b (7 U.S.C. 7b) as section 5e; 
        and
            (2) by striking sections 5 and 5a (7 U.S.C. 7, 7a) and 
        inserting the following:

``SEC. 5. DESIGNATION OF BOARDS OF TRADE AS CONTRACT MARKETS.

    ``(a) Applications.--A board of trade applying to the Commission for 
designation as a contract market shall submit an application to the 
Commission that includes any relevant materials and records the 
Commission may require consistent with this Act.
    ``(b) Criteria for Designation.--
            ``(1) In general.--To be designated as a contract market, 
        the board of trade shall demonstrate to the Commission that the 
        board of trade meets the criteria specified in this subsection.
            ``(2) Prevention of market manipulation.--The board of trade 
        shall have the capacity to prevent market manipulation through 
        market surveillance, compliance, and enforcement practices and 
        procedures, including methods for conducting real-time 
        monitoring of trading and comprehensive and accurate trade 
        reconstructions.
            ``(3) Fair and equitable trading.--The board of trade shall 
        establish and enforce trading rules to ensure fair and equitable 
        trading through the facilities of the contract market, and the 
        capacity to detect, investigate, and discipline any person that 
        violates the rules. The rules may authorize--
                    ``(A) transfer trades or office trades;
                    ``(B) an exchange of--
                          ``(i) futures in connection with a cash 
                      commodity transaction;
                          ``(ii) futures for cash commodities; or
                          ``(iii) futures for swaps; or
                    ``(C) a futures commission merchant, acting as 
                principal or agent, to enter into or confirm the 
                execution of a contract for the purchase or sale of a 
                commodity for future delivery if the contract is 
                reported, recorded, or cleared in accordance with the 
                rules of the contract market or a derivatives clearing 
                organization.
            ``(4) Trade execution facility.--The board of trade shall--
                    ``(A) establish and enforce rules defining, or 
                specifications detailing, the manner of operation of the 
                trade execution facility maintained by the board of 
                trade, including rules or specifications describing the 
                operation of any electronic matching platform; and
                    ``(B) demonstrate that the trade execution facility 
                operates in accordance with the rules or specifications.
            ``(5) Financial integrity of transactions.--The board of 
        trade shall establish and enforce rules and procedures for

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

        ensuring the financial integrity of transactions entered into by 
        or through the facilities of the contract market, including the 
        clearance and settlement of the transactions with a derivatives 
        clearing organization.
            ``(6) Disciplinary procedures.--The board of trade shall 
        establish and enforce disciplinary procedures that authorize the 
        board of trade to discipline, suspend, or expel members or 
        market participants that violate the rules of the board of 
        trade, or similar methods for performing the same functions, 
        including delegation of the functions to third parties.
            ``(7) Public access.--The board of trade shall provide the 
        public with access to the rules, regulations, and contract 
        specifications of the board of trade.
            ``(8) Ability to obtain information.--The board of trade 
        shall establish and enforce rules that will allow the board of 
        trade to obtain any necessary information to perform any of the 
        functions described in this subsection, including the capacity 
        to carry out such international information-sharing agreements 
        as the Commission may require.

    ``(c) Existing Contract Markets.--A board of trade that is 
designated as a contract market on the date of the enactment of the 
Commodity Futures Modernization Act of 2000 shall be considered to be a 
designated contract market under this section.
    ``(d) Core Principles for Contract Markets.--
            ``(1) In general.--To maintain the designation of a board of 
        trade as a contract market, the board of trade shall comply with 
        the core principles specified in this subsection. The board of 
        trade shall have reasonable discretion in establishing the 
        manner in which it complies with the core principles.
            ``(2) Compliance with rules.--The board of trade shall 
        monitor and enforce compliance with the rules of the contract 
        market, including the terms and conditions of any contracts to 
        be traded and any limitations on access to the contract market.
            ``(3) Contracts not readily subject to manipulation.--The 
        board of trade shall list on the contract market only contracts 
        that are not readily susceptible to manipulation.
            ``(4) Monitoring of trading.--The board of trade shall 
        monitor trading to prevent manipulation, price distortion, and 
        disruptions of the delivery or cash-settlement process.
            ``(5) Position limitations or accountability.--To reduce the 
        potential threat of market manipulation or congestion, 
        especially during trading in the delivery month, the board of 
        trade shall adopt position limitations or position 
        accountability for speculators, where necessary and appropriate.
            ``(6) Emergency authority.--The board of trade shall adopt 
        rules to provide for the exercise of emergency authority, in 
        consultation or cooperation with the Commission, where necessary 
        and appropriate, including the authority to--
                    ``(A) liquidate or transfer open positions in any 
                contract;
                    ``(B) suspend or curtail trading in any contract; 
                and
                    ``(C) require market participants in any contract to 
                meet special margin requirements.
            ``(7) Availability of general information.--The board of 
        trade shall make available to market authorities, market 
        participants, and the public information concerning--

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

                    ``(A) the terms and conditions of the contracts of 
                the contract market; and
                    ``(B) the mechanisms for executing transactions on 
                or through the facilities of the contract market.
            ``(8) Daily publication of trading information.--The board 
        of trade shall make public daily information on settlement 
        prices, volume, open interest, and opening and closing ranges 
        for actively traded contracts on the contract market.
            ``(9) Execution of transactions.--The board of trade shall 
        provide a competitive, open, and efficient market and mechanism 
        for executing transactions.
            ``(10) Trade information.--The board of trade shall maintain 
        rules and procedures to provide for the recording and safe 
        storage of all identifying trade information in a manner that 
        enables the contract market to use the information for purposes 
        of assisting in the prevention of customer and market abuses and 
        providing evidence of any violations of the rules of the 
        contract market.
            ``(11) Financial integrity of contracts.--The board of trade 
        shall establish and enforce rules providing for the financial 
        integrity of any contracts traded on the contract market 
        (including the clearance and settlement of the transactions with 
        a derivatives clearing organization), and rules to ensure the 
        financial integrity of any futures commission merchants and 
        introducing brokers and the protection of customer funds.
            ``(12) Protection of market participants.--The board of 
        trade shall establish and enforce rules to protect market 
        participants from abusive practices committed by any party 
        acting as an agent for the participants.
            ``(13) Dispute resolution.--The board of trade shall 
        establish and enforce rules regarding and provide facilities for 
        alternative dispute resolution as appropriate for market 
        participants and any market intermediaries.
            ``(14) Governance fitness standards.--The board of trade 
        shall establish and enforce appropriate fitness standards for 
        directors, members of any disciplinary committee, members of the 
        contract market, and any other persons with direct access to the 
        facility (including any parties affiliated with any of the 
        persons described in this paragraph).
            ``(15) Conflicts of interest.--The board of trade shall 
        establish and enforce rules to minimize conflicts of interest in 
        the decisionmaking process of the contract market and establish 
        a process for resolving such conflicts of interest.
            ``(16) Composition of boards of mutually owned contract 
        markets.--In the case of a mutually owned contract market, the 
        board of trade shall ensure that the composition of the 
        governing board reflects market participants.
            ``(17) Recordkeeping.--The board of trade shall maintain 
        records of all activities related to the business of the 
        contract market in a form and manner acceptable to the 
        Commission for a period of 5 years.
            ``(18) Antitrust considerations.--Unless necessary or 
        appropriate to achieve the purposes of this Act, the board of 
        trade shall endeavor to avoid--
                    ``(A) adopting any rules or taking any actions that 
                result in any unreasonable restraints of trade; or

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

                    ``(B) imposing any material anticompetitive burden 
                on trading on the contract market.

    ``(e) Current Agricultural Commodities.--
            ``(1) Subject to paragraph (2) of this subsection, a 
        contract for purchase or sale for future delivery of an 
        agricultural commodity enumerated in section 1a(4) that is 
        available for trade on a contract market, as of the date of the 
        enactment of this subsection, may be traded only on a contract 
        market designated under this section.
            ``(2) In order to promote responsible economic or financial 
        innovation and fair competition, the Commission, on application 
        by any person, after notice and public comment and opportunity 
        for hearing, may prescribe rules and regulations to provide for 
        the offer and sale of contracts for future delivery or options 
        on such contracts to be conducted on a derivatives transaction 
        execution facility.''.

SEC. 111. DERIVATIVES TRANSACTION EXECUTION FACILITIES.

    The Commodity Exchange Act (7 U.S.C. 1 et seq.) is amended by 
inserting after section 5 (as amended by section 110(2)) the following:

``SEC. 5a. DERIVATIVES TRANSACTION EXECUTION FACILITIES.

    ``(a) In General.--In lieu of compliance with the contract market 
designation requirements of sections 4(a) and 5, a board of trade may 
elect to operate as a registered derivatives transaction execution 
facility if the facility is--
            ``(1) designated as a contract market and meets the 
        requirements of this section; or
            ``(2) registered as a derivatives transaction execution 
        facility under subsection (c) of this section.

    ``(b) Requirements for Trading.--
            ``(1) In general.--A registered derivatives transaction 
        execution facility under subsection (a) may trade any contract 
        of sale of a commodity for future delivery (or option on such a 
        contract) on or through the facility only by satisfying the 
        requirements of this section.
            ``(2) Requirements for underlying commodities.--A registered 
        derivatives transaction execution facility may trade any 
        contract of sale of a commodity for future delivery (or option 
        on such a contract) only if--
                    ``(A) the underlying commodity has a nearly 
                inexhaustible deliverable supply;
                    ``(B) the underlying commodity has a deliverable 
                supply that is sufficiently large that the contract is 
                highly unlikely to be susceptible to the threat of 
                manipulation;
                    ``(C) the underlying commodity has no cash market;
                    ``(D)(i) the contract is a security futures product, 
                and (ii) the registered derivatives transaction 
                execution facility is a national securities exchange 
                registered under the Securities Exchange Act of 1934;
                    ``(E) the Commission determines, based on the market 
                characteristics, surveillance history, self-regulatory 
                record, and capacity of the facility that trading in the 
                contract (or option) is highly unlikely to be 
                susceptible to the threat of manipulation; or
                    ``(F) except as provided in section 5(e)(2), the 
                underlying commodity is a commodity other than an 
                agricultural

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

                commodity enumerated in section 1a(4), and trading 
                access to the facility is limited to eligible commercial 
                entities trading for their own account.
            ``(3) Eligible traders.--To trade on a registered 
        derivatives transaction execution facility, a person shall--
                    ``(A) be an eligible contract participant; or
                    ``(B) be a person trading through a futures 
                commission merchant that--
                          ``(i) is registered with the Commission;
                          ``(ii) is a member of a futures self-
                      regulatory organization or, if the person trades 
                      only security futures products on the facility, a 
                      national securities association registered under 
                      section 15A(a) of the Securities Exchange Act of 
                      1934;
                          ``(iii) is a clearing member of a derivatives 
                      clearing organization; and
                          ``(iv) has net capital of at least 
                      $20,000,000.
            ``(4) Trading by contract markets.--A board of trade that is 
        designated as a contract market shall, to the extent that the 
        contract market also operates a registered derivatives 
        transaction execution facility--
                    ``(A) provide a physical location for the contract 
                market trading of the board of trade that is separate 
                from trading on the derivatives transaction execution 
                facility of the board of trade; or
                    ``(B) if the board of trade uses the same electronic 
                trading system for trading on the contract market and 
                derivatives transaction execution facility of the board 
                of trade, identify whether the electronic trading is 
                taking place on the contract market or the derivatives 
                transaction execution facility.

    ``(c) Criteria for Registration.--
            ``(1) In general.--To be registered as a registered 
        derivatives transaction execution facility, the board of trade 
        shall be required to demonstrate to the Commission only that the 
        board of trade meets the criteria specified in subsection (b) 
        and this subsection.
            ``(2) Deterrence of abuses.--The board of trade shall 
        establish and enforce trading and participation rules that will 
        deter abuses and has the capacity to detect, investigate, and 
        enforce those rules, including means to--
                    ``(A) obtain information necessary to perform the 
                functions required under this section; or
                    ``(B) use technological means to--
                          ``(i) provide market participants with 
                      impartial access to the market; and
                          ``(ii) capture information that may be used in 
                      establishing whether rule violations have 
                      occurred.
            ``(3) Trading procedures.--The board of trade shall 
        establish and enforce rules or terms and conditions defining, or 
        specifications detailing, trading procedures to be used in 
        entering and executing orders traded on the facilities of the 
        board of trade. The rules may authorize--
                    ``(A) transfer trades or office trades;
                    ``(B) an exchange of--
                          ``(i) futures in connection with a cash 
                      commodity transaction;

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

                          ``(ii) futures for cash commodities; or
                          ``(iii) futures for swaps; or
                    ``(C) a futures commission merchant, acting as 
                principal or agent, to enter into or confirm the 
                execution of a contract for the purchase or sale of a 
                commodity for future delivery if the contract is 
                reported, recorded, or cleared in accordance with the 
                rules of the registered derivatives transaction 
                execution facility or a derivatives clearing 
                organization.
            ``(4) Financial integrity of transactions.--The board of 
        trade shall establish and enforce rules or terms and conditions 
        providing for the financial integrity of transactions entered on 
        or through the facilities of the board of trade, and rules or 
        terms and conditions to ensure the financial integrity of any 
        futures commission merchants and introducing brokers and the 
        protection of customer funds.

    ``(d) Core Principles for Registered Derivatives Transaction 
Execution Facilities.--
            ``(1) In general.--To maintain the registration of a board 
        of trade as a derivatives transaction execution facility, a 
        board of trade shall comply with the core principles specified 
        in this subsection. The board of trade shall have reasonable 
        discretion in establishing the manner in which the board of 
        trade complies with the core principles.
            ``(2) Compliance with rules.--The board of trade shall 
        monitor and enforce the rules of the facility, including any 
        terms and conditions of any contracts traded on or through the 
        facility and any limitations on access to the facility.
            ``(3) Monitoring of trading.--The board of trade shall 
        monitor trading in the contracts of the facility to ensure 
        orderly trading in the contract and to maintain an orderly 
        market while providing any necessary trading information to the 
        Commission to allow the Commission to discharge the 
        responsibilities of the Commission under the Act.
            ``(4) Disclosure of general information.--The board of trade 
        shall disclose publicly and to the Commission information 
        concerning--
                    ``(A) contract terms and conditions;
                    ``(B) trading conventions, mechanisms, and 
                practices;
                    ``(C) financial integrity protections; and
                    ``(D) other information relevant to participation in 
                trading on the facility.
            ``(5) Daily publication of trading information.--The board 
        of trade shall make public daily information on settlement 
        prices, volume, open interest, and opening and closing ranges 
        for contracts traded on the facility if the Commission 
        determines that the contracts perform a significant price 
        discovery function for transactions in the cash market for the 
        commodity underlying the contracts.
            ``(6) Fitness standards.--The board of trade shall establish 
        and enforce appropriate fitness standards for directors, members 
        of any disciplinary committee, members, and any other persons 
        with direct access to the facility, including any parties 
        affiliated with any of the persons described in this paragraph.
            ``(7) Conflicts of interest.--The board of trade shall 
        establish and enforce rules to minimize conflicts of interest in 
        the decision making process of the derivatives transaction

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

        execution facility and establish a process for resolving such 
        conflicts of interest.
            ``(8) Recordkeeping.--The board of trade shall maintain 
        records of all activities related to the business of the 
        derivatives transaction execution facility in a form and manner 
        acceptable to the Commission for a period of 5 years.
            ``(9) Antitrust considerations.--Unless necessary or 
        appropriate to achieve the purposes of this Act, the board of 
        trade shall endeavor to avoid--
                    ``(A) adopting any rules or taking any actions that 
                result in any unreasonable restraint of trade; or
                    ``(B) imposing any material anticompetitive burden 
                on trading on the derivatives transaction execution 
                facility.

    ``(e) Use of Broker-Dealers, Depository Institutions, and Farm 
Credit System Institutions as Intermediaries.--
            ``(1) In general.--With respect to transactions other than 
        transactions in security futures products, a registered 
        derivatives transaction execution facility may by rule allow a 
        broker-dealer, depository institution, or institution of the 
        Farm Credit System that meets the requirements of paragraph (2) 
        to--
                    ``(A) act as an intermediary in transactions 
                executed on the facility on behalf of customers of the 
                broker-dealer, depository institution, or institution of 
                the Farm Credit System; and
                    ``(B) receive funds of customers to serve as margin 
                or security for the transactions.
            ``(2) Requirements.--The requirements referred to in 
        paragraph (1) are that--
                    ``(A) the broker-dealer be in good standing with the 
                Securities and Exchange Commission, or the depository 
                institution or institution of the Farm Credit System be 
                in good standing with Federal bank regulatory agencies 
                (including the Farm Credit Administration), as 
                applicable; and
                    ``(B) if the broker-dealer, depository institution, 
                or institution of the Farm Credit System carries or 
                holds customer accounts or funds for transactions on the 
                derivatives transaction execution facility for more than 
                1 business day, the broker-dealer, depository 
                institution, or institution of the Farm Credit System is 
                registered as a futures commission merchant and is a 
                member of a registered futures association.
            ``(3) Implementation.--The Commission shall cooperate and 
        coordinate with the Securities and Exchange Commission, the 
        Secretary of the Treasury, and Federal banking regulatory 
        agencies (including the Farm Credit Administration) in adopting 
        rules and taking any other appropriate action to facilitate the 
        implementation of this subsection.

    ``(f ) Segregation of Customer Funds.--Not later than 180 days after 
the date of the enactment of the Commodity Futures Modernization Act of 
2000, consistent with regulations adopted by the Commission, a 
registered derivatives transaction execution facility may authorize a 
futures commission merchant to offer any customer of the futures 
commission merchant that is an eligible contract participant the right 
to not segregate the customer funds

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

of the customer that are carried with the futures commission merchant 
for purposes of trading on or through the facilities of the registered 
derivatives transaction execution facility.
    ``(g) Election To Trade Excluded and Exempt Commodities.--
            ``(1) In general.--Notwithstanding subsection (b)(2) of this 
        section, a board of trade that is or elects to become a 
        registered derivatives transaction execution facility may trade 
        on the facility any agreements, contracts, or transactions 
        involving excluded or exempt commodities other than securities, 
        except contracts of sale for future delivery of exempt 
        securities under section 3(a)(12) of the Securities Exchange Act 
        of 1934 as in effect on the date of the enactment of the Futures 
        Trading Act of 1982, that are otherwise excluded from this Act 
        under section 2(c), 2(d), or 2(g) of this Act, or exempt under 
        section 2(h) of this Act.
            ``(2) Exclusive jurisdiction of the commission.--The 
        Commission shall have exclusive jurisdiction over agreements, 
        contracts, or transactions described in paragraph (1) to the 
        extent that the agreements, contracts, or transactions are 
        traded on a derivatives transaction execution facility.''.

SEC. 112. DERIVATIVES CLEARING.

    (a) In General.--Subtitle A of title IV of the Federal Deposit 
Insurance Corporation Improvement Act of 1991 is amended--
            (1) by inserting before the section heading for section 401, 
        the following new heading:

       ``CHAPTER 1--BILATERAL AND CLEARING ORGANIZATION NETTING'';

            (2) in section 402, by striking ``this subtitle'' and 
        inserting ``this chapter''; and
            (3) by inserting after section 407, the following new 
        chapter:

            ``CHAPTER 2--MULTILATERAL CLEARING ORGANIZATIONS

``SEC. 408. DEFINITIONS.

    For purposes of this chapter, the following definitions shall apply:
            ``(1) Multilateral clearing organization.--The term 
        `multilateral clearing organization' means a system utilized by 
        more than two participants in which the bilateral credit 
        exposures of participants arising from the transactions cleared 
        are effectively eliminated and replaced by a system of 
        guarantees, insurance, or mutualized risk of loss.
            ``(2) Over-the-counter derivative instrument.--The term 
        `over-the-counter derivative instrument' includes--
                    ``(A) any agreement, contract, or transaction, 
                including the terms and conditions incorporated by 
                reference in any such agreement, contract, or 
                transaction, which is an interest rate swap, option, or 
                forward agreement, including a rate floor, rate cap, 
                rate collar, cross-currency rate swap, basis swap, and 
                forward rate agreement; a same day-tomorrow, tomorrow-
                next, forward, or other foreign exchange or precious 
                metals agreement; a currency swap, option, or forward 
                agreement; an equity index or equity swap,

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

                option, or forward agreement; a debt index or debt swap, 
                option, or forward agreement; a credit spread or credit 
                swap, option, or forward agreement; a commodity index or 
                commodity swap, option, or forward agreement; and a 
                weather swap, weather derivative, or weather option;
                    ``(B) any agreement, contract or transaction similar 
                to any other agreement, contract, or transaction 
                referred to in this clause that is presently, or in the 
                future becomes, regularly entered into by parties that 
                participate in swap transactions (including terms and 
                conditions incorporated by reference in the agreement) 
                and that is a forward, swap, or option on one or more 
                occurrences of any event, rates, currencies, 
                commodities, equity securities or other equity 
                instruments, debt securities or other debt instruments, 
                economic or other indices or measures of economic or 
                other risk or value;
                    ``(C) any agreement, contract, or transaction 
                excluded from the Commodity Exchange Act under section 
                2(c), 2(d), 2(f ), or 2(g) of such Act, or exempted 
                under section 2(h) or 4(c) of such Act; and
                    ``(D) any option to enter into any, or any 
                combination of, agreements, contracts or transactions 
                referred to in this subparagraph.
            ``(3) Other definitions.--The terms `insured State nonmember 
        bank', `State member bank', and `affiliate' have the same 
        meanings as in section 3 of the Federal Deposit Insurance Act.

``SEC. 409. MULTILATERAL CLEARING ORGANIZATIONS.

    ``(a) In General.--Except with respect to clearing organizations 
described in subsection (b), no person may operate a multilateral 
clearing organization for over-the-counter derivative instruments, or 
otherwise engage in activities that constitute such a multilateral 
clearing organization unless the person is a national bank, a State 
member bank, an insured State nonmember bank, an affiliate of a national 
bank, a State member bank, or an insured State nonmember bank, or a 
corporation chartered under section 25A of the Federal Reserve Act.
    ``(b) Clearing Organizations.--Subsection (a) shall not apply to any 
clearing organization that--
            ``(1) is registered as a clearing agency under the 
        Securities Exchange Act of 1934;
            ``(2) is registered as a derivatives clearing organization 
        under the Commodity Exchange Act; or
            ``(3) is supervised by a foreign financial regulator that 
        the Comptroller of the Currency, the Board of Governors of the 
        Federal Reserve System, the Federal Deposit Insurance 
        Corporation, the Securities and Exchange Commission, or the 
        Commodity Futures Trading Commission, as applicable, has 
        determined satisfies appropriate standards.''.

    (b) Resolution of Clearing Banks.--The Federal Reserve Act (12 
U.S.C. 221 et seq.) is amended by inserting after section 9A the 
following new section:

``SEC. 9B. RESOLUTION OF CLEARING BANKS.

    ``(a) Conservatorship or Receivership.--
            ``(1) Appointment.--The Board may appoint a conservator or 
        receiver to take possession and control of any uninsured

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

        State member bank which operates, or operates as, a multilateral 
        clearing organization pursuant to section 409 of the Federal 
        Deposit Insurance Corporation Improvement Act of 1991 to the 
        same extent and in the same manner as the Comptroller of the 
        Currency may appoint a conservator or receiver for a national 
        bank.
            ``(2) Powers.--The conservator or receiver for an uninsured 
        State member bank referred to in paragraph (1) shall exercise 
        the same powers, functions, and duties, subject to the same 
        limitations, as a conservator or receiver for a national bank.

    ``(b) Board Authority.--The Board shall have the same authority with 
respect to any conservator or receiver appointed under subsection (a), 
and the uninsured State member bank for which the conservator or 
receiver has been appointed, as the Comptroller of the Currency has with 
respect to a conservator or receiver for a national bank and the 
national bank for which the conservator or receiver has been appointed.
    ``(c) Bankruptcy Proceedings.--The Board (in the case of an 
uninsured State member bank which operates, or operates as, such a 
multilateral clearing organization) may direct a conservator or receiver 
appointed for the bank to file a petition pursuant to title 11, United 
States Code, in which case, title 11, United States Code, shall apply to 
the bank in lieu of otherwise applicable Federal or State insolvency 
law.''.
    (c) Technical and Conforming Amendments to Title 11, United States 
Code.--
            (1) Bankruptcy code debtors.--Section 109(b)(2) of title 11, 
        United States Code, is amended by striking ``; or'' and 
        inserting the following: ``, except that an uninsured State 
        member bank, or a corporation organized under section 25A of the 
        Federal Reserve Act, which operates, or operates as, a 
        multilateral clearing organization pursuant to section 409 of 
        the Federal Deposit Insurance Corporation Improvement Act of 
        1991 may be a debtor if a petition is filed at the direction of 
        the Board of Governors of the Federal Reserve System; or''.
            (2) Chapter 7 debtors.--Section 109(d) of title 11, United 
        States Code, is amended to read as follows:

    ``(d) Only a railroad, a person that may be a debtor under chapter 7 
of this title (except a stockbroker or a commodity broker), and an 
uninsured State member bank, or a corporation organized under section 
25A of the Federal Reserve Act, which operates, or operates as, a 
multilateral clearing organization pursuant to section 409 of the 
Federal Deposit Insurance Corporation Improvement Act of 1991 may be a 
debtor under chapter 11 of this title.''.
            (3) Definition of financial institution.--Section 101(22) of 
        title 11, United States Code, is amended to read as follows:
            ``(22) the term `financial institution'--
                    ``(A) means--
                          ``(i) a Federal reserve bank or an entity 
                      (domestic or foreign) that is a commercial or 
                      savings bank, industrial savings bank, savings and 
                      loan association, trust company, or receiver or 
                      conservator for such entity and, when any such 
                      Federal reserve bank, receiver, conservator, or 
                      entity is acting as agent or custodian for a 
                      customer in connection with a securities contract,

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

                      as defined in section 741 of this title, the 
                      customer; or
                          ``(ii) in connection with a securities 
                      contract, as defined in section 741 of this title, 
                      an investment company registered under the 
                      Investment Company Act of 1940; and
                    ``(B) includes any person described in subparagraph 
                (A) which operates, or operates as, a multilateral 
                clearing organization pursuant to section 409 of the 
                Federal Deposit Insurance Corporation Improvement Act of 
                1991;''.
            (4) Definition of uninsured state member bank.--Section 101 
        of title 11, United States Code, is amended by inserting after 
        paragraph (54) the following new paragraph--

    ``(54A) the term `uninsured State member bank' means a State member 
bank (as defined in section 3 of the Federal Deposit Insurance Act) the 
deposits of which are not insured by the Federal Deposit Insurance 
Corporation; and''.
    (5) Subchapter v of chapter 7.--
                    (A) In general.--Section 103 of title 11, United 
                States Code, is amended--
                          (i) by redesignating subsections (e) through 
                      (i) as subsections (f ) through ( j), 
                      respectively; and
                          (ii) by inserting after subsection (d) the 
                      following new subsection:

    ``(e) Scope of Application.--Subchapter V of chapter 7 of this title 
shall apply only in a case under such chapter concerning the liquidation 
of an uninsured State member bank, or a corporation organized under 
section 25A of the Federal Reserve Act, which operates, or operates as, 
a multilateral clearing organization pursuant to section 409 of the 
Federal Deposit Insurance Corporation Improvement Act of 1991.''.
                    (B) Clearing bank liquidation.--Chapter 7 of title 
                11, United States Code, is amended by adding at the end 
                the following new subchapter:

                ``SUBCHAPTER V--CLEARING BANK LIQUIDATION

``Sec. 781. Definitions

    ``For purposes of this subchapter, the following definitions shall 
apply:
            ``(1) Board.--The term `Board' means the Board of Governors 
        of the Federal Reserve System.
            ``(2) Depository institution.--The term `depository 
        institution' has the same meaning as in section 3 of the Federal 
        Deposit Insurance Act.
            ``(3) Clearing bank.--The term `clearing bank' means an 
        uninsured State member bank, or a corporation organized under 
        section 25A of the Federal Reserve Act, which operates, or 
        operates as, a multilateral clearing organization pursuant to 
        section 409 of the Federal Deposit Insurance Corporation 
        Improvement Act of 1991.

``Sec. 782. Selection of trustee

    ``(a) In General.--
            ``(1) Appointment.--Notwithstanding any other provision of 
        this title, the conservator or receiver who files the petition

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

        shall be the trustee under this chapter, unless the Board 
        designates an alternative trustee.
            ``(2) Successor.--The Board may designate a successor 
        trustee if required.

    ``(b) Authority of Trustee.--Whenever the Board appoints or 
designates a trustee, chapter 3 and sections 704 and 705 of this title 
shall apply to the Board in the same way and to the same extent that 
they apply to a United States trustee.

``Sec. 783. Additional powers of trustee

    ``(a) Distribution of Property Not of the Estate.--The trustee under 
this subchapter has power to distribute property not of the estate, 
including distributions to customers that are mandated by subchapters 
III and IV of this chapter.
    ``(b) Disposition of Institution.--The trustee under this subchapter 
may, after notice and a hearing--
            ``(1) sell the clearing bank to a depository institution or 
        consortium of depository institutions (which consortium may 
        agree on the allocation of the clearing bank among the 
        consortium);
            ``(2) merge the clearing bank with a depository institution;
            ``(3) transfer contracts to the same extent as could a 
        receiver for a depository institution under paragraphs (9) and 
        (10) of section 11(e) of the Federal Deposit Insurance Act;
            ``(4) transfer assets or liabilities to a depository 
        institution; and
            ``(5) transfer assets and liabilities to a bridge bank as 
        provided in paragraphs (1), (3)(A), (5), and (6) of section 
        11(n) of the Federal Deposit Insurance Act, paragraphs (9) 
        through (13) of such section, and subparagraphs (A) through (H) 
        and subparagraph (K) of paragraph (4) of such section 11(n), 
        except that--
                    ``(A) the bridge bank to which such assets or 
                liabilities are transferred shall be treated as a 
                clearing bank for the purpose of this subsection; and
                    ``(B) any references in any such provision of law to 
                the Federal Deposit Insurance Corporation shall be 
                construed to be references to the appointing agency and 
                that references to deposit insurance shall be omitted.

    ``(c) Certain Transfers Included.--Any reference in this section to 
transfers of liabilities includes a ratable transfer of liabilities 
within a priority class.

``Sec. 784. Right to be heard

    ``The Board or a Federal reserve bank (in the case of a clearing 
bank that is a member of that bank) may raise and may appear and be 
heard on any issue in a case under this subchapter.''.
            (6) Definitions of clearing organization, contract market, 
        and related definitions.--
                    (A) Section 761(2) of title 11, United States Code, 
                is amended to read as follows:
            ``(2) `clearing organization' means a derivatives clearing 
        organization registered under the Act;''.
                    (B) Section 761(7) of title 11, United States Code, 
                is amended to read as follows:
            ``(7) `contract market' means a registered entity;''.

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

                    (C) Section 761(8) of title 11, United States Code, 
                is amended to read as follows:
            ``(8) `contract of sale', `commodity', `derivatives clearing 
        organization', `future delivery', `board of trade', `registered 
        entity', and `futures commission merchant' have the meanings 
        assigned to those terms in the Act;''.

    (d) Clerical Amendment.--The table of sections for chapter 7 of 
title 11, United States Code, is amended by adding at the end the 
following new items:

                ``SUBCHAPTER V--CLEARING BANK LIQUIDATION

``Sec.
``781. Definitions.
``782. Selection of trustee.
``783. Additional powers of trustee.
``784. Right to be heard.''.

    (e) Resolution of Edge Act Corporations.--The 16th undesignated 
paragraph of section 25A of the Federal Reserve Act (12 U.S.C. 624) is 
amended to read as follows:
            ``(16) Appointment of receiver or conservator.--
                    ``(A) In general.--The Board may appoint a 
                conservator or receiver for a corporation organized 
                under the provisions of this section to the same extent 
                and in the same manner as the Comptroller of the 
                Currency may appoint a conservator or receiver for a 
                national bank, and the conservator or receiver for such 
                corporation shall exercise the same powers, functions, 
                and duties, subject to the same limitations, as a 
                conservator or receiver for a national bank.
                    ``(B) Equivalent authority.--The Board shall have 
                the same authority with respect to any conservator or 
                receiver appointed for a corporation organized under the 
                provisions of this section under this paragraph and any 
                such corporation as the Comptroller of the Currency has 
                with respect to a conservator or receiver of a national 
                bank and the national bank for which a conservator or 
                receiver has been appointed.
                    ``(C) Title 11 petitions.--The Board may direct the 
                conservator or receiver of a corporation organized under 
                the provisions of this section to file a petition 
                pursuant to title 11, United States Code, in which case, 
                title 11, United States Code, shall apply to the 
                corporation in lieu of otherwise applicable Federal or 
                State insolvency law.''.

    (f ) Derivatives Clearing Organizations.--The Commodity Exchange Act 
(7 U.S.C. 1 et seq.) is amended by inserting after section 5a, as added 
by section 111 of this Act, the following:

``SEC. 5b. DERIVATIVES CLEARING ORGANIZATIONS.

    ``(a) Registration Requirement.--It shall be unlawful for a 
derivatives clearing organization, unless registered with the 
Commission, directly or indirectly to make use of the mails or any means 
or instrumentality of interstate commerce to perform the functions of a 
derivatives clearing organization described in section 1a(9) of this Act 
with respect to a contract of sale of a commodity for future delivery 
(or option on such a contract) or option on a commodity, in each case 
unless the contract or option--

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

            ``(1) is excluded from this Act by section 2(a)(1)(C)(i), 
        2(c), 2(d), 2(f ), or 2(g) of this Act or title IV of the 
        Commodity Futures Modernization Act of 2000, or exempted under 
        section 2(h) or 4(c) of this Act; or
            ``(2) is a security futures product cleared by a clearing 
        agency registered under the Securities Exchange Act of 1934.

    ``(b) Voluntary Registration.--A derivatives clearing organization 
that clears agreements, contracts, or transactions excluded from this 
Act by section 2(c), 2(d), 2(f ), or 2(g) of this Act or title IV of the 
Commodity Futures Modernization Act of 2000, or exempted under section 
2(h) or 4(c) of this Act, or other over-the-counter derivative 
instruments (as defined in the Federal Deposit Insurance Corporation 
Improvement Act of 1991) may register with the Commission as a 
derivatives clearing organization.
    ``(c) Registration of Derivatives Clearing Organizations.--
            ``(1) Application.--A person desiring to register as a 
        derivatives clearing organization shall submit to the Commission 
        an application in such form and containing such information as 
        the Commission may require for the purpose of making the 
        determinations required for approval under paragraph (2).
            ``(2) Core principles.--
                    ``(A) In general.--To be registered and to maintain 
                registration as a derivatives clearing organization, an 
                applicant shall demonstrate to the Commission that the 
                applicant complies with the core principles specified in 
                this paragraph. The applicant shall have reasonable 
                discretion in establishing the manner in which it 
                complies with the core principles.
                    ``(B) Financial resources.--The applicant shall 
                demonstrate that the applicant has adequate financial, 
                operational, and managerial resources to discharge the 
                responsibilities of a derivatives clearing organization.
                    ``(C) Participant and product eligibility.--The 
                applicant shall establish--
                          ``(i) appropriate admission and continuing 
                      eligibility standards (including appropriate 
                      minimum financial requirements) for members of and 
                      participants in the organization; and
                          ``(ii) appropriate standards for determining 
                      eligibility of agreements, contracts, or 
                      transactions submitted to the applicant.
                    ``(D) Risk management.--The applicant shall have the 
                ability to manage the risks associated with discharging 
                the responsibilities of a derivatives clearing 
                organization through the use of appropriate tools and 
                procedures.
                    ``(E) Settlement procedures.--The applicant shall 
                have the ability to--
                          ``(i) complete settlements on a timely basis 
                      under varying circumstances;
                          ``(ii) maintain an adequate record of the flow 
                      of funds associated with each transaction that the 
                      applicant clears; and
                          ``(iii) comply with the terms and conditions 
                      of any permitted netting or offset arrangements 
                      with other clearing organizations.

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

                    ``(F) Treatment of funds.--The applicant shall have 
                standards and procedures designed to protect and ensure 
                the safety of member and participant funds.
                    ``(G) Default rules and procedures.--The applicant 
                shall have rules and procedures designed to allow for 
                efficient, fair, and safe management of events when 
                members or participants become insolvent or otherwise 
                default on their obligations to the derivatives clearing 
                organization.
                    ``(H) Rule enforcement.--The applicant shall--
                          ``(i) maintain adequate arrangements and 
                      resources for the effective monitoring and 
                      enforcement of compliance with rules of the 
                      applicant and for resolution of disputes; and
                          ``(ii) have the authority and ability to 
                      discipline, limit, suspend, or terminate a 
                      member's or participant's activities for 
                      violations of rules of the applicant.
                    ``(I) System safeguards.--The applicant shall 
                demonstrate that the applicant--
                          ``(i) has established and will maintain a 
                      program of oversight and risk analysis to ensure 
                      that the automated systems of the applicant 
                      function properly and have adequate capacity and 
                      security; and
                          ``(ii) has established and will maintain 
                      emergency procedures and a plan for disaster 
                      recovery, and will periodically test backup 
                      facilities sufficient to ensure daily processing, 
                      clearing, and settlement of transactions.
                    ``(J) Reporting.--The applicant shall provide to the 
                Commission all information necessary for the Commission 
                to conduct the oversight function of the applicant with 
                respect to the activities of the derivatives clearing 
                organization.
                    ``(K) Recordkeeping.--The applicant shall maintain 
                records of all activities related to the business of the 
                applicant as a derivatives clearing organization in a 
                form and manner acceptable to the Commission for a 
                period of 5 years.
                    ``(L) Public information.--The applicant shall make 
                information concerning the rules and operating 
                procedures governing the clearing and settlement systems 
                (including default procedures) available to market 
                participants.
                    ``(M) Information-sharing.--The applicant shall--
                          ``(i) enter into and abide by the terms of all 
                      appropriate and applicable domestic and 
                      international information-sharing agreements; and
                          ``(ii) use relevant information obtained from 
                      the agreements in carrying out the clearing 
                      organization's risk management program.
                    ``(N) Antitrust considerations.--Unless appropriate 
                to achieve the purposes of this Act, the derivatives 
                clearing organization shall avoid--
                          ``(i) adopting any rule or taking any action 
                      that results in any unreasonable restraint of 
                      trade; or
                          ``(ii) imposing any material anticompetitive 
                      burden on trading on the contract market.
            ``(3) Orders concerning competition.--A derivatives clearing 
        organization may request the Commission to issue

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

        an order concerning whether a rule or practice of the applicant 
        is the least anticompetitive means of achieving the objectives, 
        purposes, and policies of this Act.

    ``(d) Existing Derivatives Clearing Organizations.--A derivatives 
clearing organization shall be deemed to be registered under this 
section to the extent that the derivatives clearing organization clears 
agreements, contracts, or transactions for a board of trade that has 
been designated by the Commission as a contract market for such 
agreements, contracts, or transactions before the date of the enactment 
of this section.
    ``(e) Appointment of Trustee.--
            ``(1) In general.--If a proceeding under section 5e results 
        in the suspension or revocation of the registration of a 
        derivatives clearing organization, or if a derivatives clearing 
        organization withdraws from registration, the Commission, on 
        notice to the derivatives clearing organization, may apply to 
        the appropriate United States district court where the 
        derivatives clearing organization is located for the appointment 
        of a trustee.
            ``(2) Assumption of jurisdiction.--If the Commission applies 
        for appointment of a trustee under paragraph (1)--
                    ``(A) the court may take exclusive jurisdiction over 
                the derivatives clearing organization and the records 
                and assets of the derivatives clearing organization, 
                wherever located; and
                    ``(B) if the court takes jurisdiction under 
                subparagraph (A), the court shall appoint the 
                Commission, or a person designated by the Commission, as 
                trustee with power to take possession and continue to 
                operate or terminate the operations of the derivatives 
                clearing organization in an orderly manner for the 
                protection of participants, subject to such terms and 
                conditions as the court may prescribe.

    ``(f ) Linking of Regulated Clearing Facilities.--
            ``(1) In general.--The Commission shall facilitate the 
        linking or coordination of derivatives clearing organizations 
        registered under this Act with other regulated clearance 
        facilities for the coordinated settlement of cleared 
        transactions.
            ``(2) Coordination.--In carrying out paragraph (1), the 
        Commission shall coordinate with the Federal banking agencies 
        and the Securities and Exchange Commission.''.

SEC. 113. COMMON PROVISIONS APPLICABLE TO REGISTERED ENTITIES.

    The Commodity Exchange Act (7 U.S.C. 1 et seq.) is amended by 
inserting after section 5b (as added by section 112(f )) the following:

``SEC. 5c. COMMON PROVISIONS APPLICABLE TO REGISTERED ENTITIES.

    ``(a) Acceptable Business Practices Under Core Principles.--
            ``(1) In general.--Consistent with the purposes of this Act, 
        the Commission may issue interpretations, or approve 
        interpretations submitted to the Commission, of sections 5(d), 
        5a(d), and 5b(d)(2) to describe what would constitute an 
        acceptable business practice under such sections.
            ``(2) Effect of interpretation.--An interpretation issued 
        under paragraph (1) shall not provide the exclusive means for 
        complying with such sections.

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

    ``(b) Delegation of Functions Under Core Principles.--
            ``(1) In general.--A contract market or derivatives 
        transaction execution facility may comply with any applicable 
        core principle through delegation of any relevant function to a 
        registered futures association or another registered entity.
            ``(2) Responsibility.--A contract market or derivatives 
        transaction execution facility that delegates a function under 
        paragraph (1) shall remain responsible for carrying out the 
        function.
            ``(3) Noncompliance.--If a contract market or derivatives 
        transaction execution facility that delegates a function under 
        paragraph (1) becomes aware that a delegated function is not 
        being performed as required under this Act, the contract market 
        or derivatives transaction execution facility shall promptly 
        take steps to address the noncompliance.

    ``(c) New Contracts, New Rules, and Rule Amendments.--
            ``(1) In general.--Subject to paragraph (2), a registered 
        entity may elect to list for trading or accept for clearing any 
        new contract or other instrument, or may elect to approve and 
        implement any new rule or rule amendment, by providing to the 
        Commission (and the Secretary of the Treasury, in the case of a 
        contract of sale of a government security for future delivery 
        (or option on such a contract) or a rule or rule amendment 
        specifically related to such a contract) a written certification 
        that the new contract or instrument or clearing of the new 
        contract or instrument, new rule, or rule amendment complies 
        with this Act (including regulations under this Act).
            ``(2) Prior approval.--
                    ``(A) In general.--A registered entity may request 
                that the Commission grant prior approval to any new 
                contract or other instrument, new rule, or rule 
                amendment.
                    ``(B) Prior approval required.--Notwithstanding any 
                other provision of this section, a designated contract 
                market shall submit to the Commission for prior approval 
                each rule amendment that materially changes the terms 
                and conditions, as determined by the Commission, in any 
                contract of sale for future delivery of a commodity 
                specifically enumerated in section 1a(4) (or any option 
                thereon) traded through its facilities if the rule 
                amendment applies to contracts and delivery months which 
                have already been listed for trading and have open 
                interest.
                    ``(C) Deadline.--If prior approval is requested 
                under subparagraph (A), the Commission shall take final 
                action on the request not later than 90 days after 
                submission of the request, unless the person submitting 
                the request agrees to an extension of the time 
                limitation established under this subparagraph.
            ``(3) Approval.--The Commission shall approve any such new 
        contract or instrument, new rule, or rule amendment unless the 
        Commission finds that the new contract or instrument, new rule, 
        or rule amendment would violate this Act.

    ``(d) Violation of Core Principles.--
            ``(1) In general.--If the Commission determines, on the 
        basis of substantial evidence, that a registered entity is 
        violating any applicable core principle specified in section 
        5(d), 5a(d), or 5b(d)(2), the Commission shall--

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

                    ``(A) notify the registered entity in writing of the 
                determination; and
                    ``(B) afford the registered entity an opportunity to 
                make appropriate changes to bring the registered entity 
                into compliance with the core principles.
            ``(2) Failure to make changes.--If, not later than 30 days 
        after receiving a notification under paragraph (1), a registered 
        entity fails to make changes that, in the opinion of the 
        Commission, are necessary to comply with the core principles, 
        the Commission may take further action in accordance with this 
        Act.

    ``(e) Reservation of Emergency Authority.--Nothing in this section 
shall limit or in any way affect the emergency powers of the Commission 
provided in section 8a(9).''.

SEC. 114. EXEMPT BOARDS OF TRADE.

    The Commodity Exchange Act (7 U.S.C. 1 et seq.) is amended by 
inserting after section 5c (as added by section 113) the following:

``SEC. 5d. EXEMPT BOARDS OF TRADE.

    ``(a) Election To Register With the Commission.--A board of trade 
that meets the requirements of subsection (b) of this section may 
operate as an exempt board of trade on receipt from the board of trade 
of a notice, provided in such manner as the Commission may by rule or 
regulation prescribe, that the board of trade elects to operate as an 
exempt board of trade. Except as otherwise provided in this section, no 
provision of this Act (other than subparagraphs (C) and (D) of sections 
2(a)(1) and 12(e)(2)(B)) shall apply with respect to a contract of sale 
of a commodity for future delivery (or option on such a contract) traded 
on or through the facilities of an exempt board of trade.
    ``(b) Criteria for Exemption.--To qualify for an exemption under 
subsection (a), a board of trade shall limit trading on or through the 
facilities of the board of trade to contracts of sale of a commodity for 
future delivery (or options on such contracts or on a commodity)--
            ``(1) for which the underlying commodity has--
                    ``(A) a nearly inexhaustible deliverable supply;
                    ``(B) a deliverable supply that is sufficiently 
                large, and a cash market sufficiently liquid, to render 
                any contract traded on the commodity highly unlikely to 
                be susceptible to the threat of manipulation; or
                    ``(C) no cash market;
            ``(2) that are entered into only between persons that are 
        eligible contract participants at the time at which the persons 
        enter into the contract; and
            ``(3) that are not contracts of sale (or options on such a 
        contract or on a commodity) for future delivery of any security, 
        including any group or index of securities or any interest in, 
        or based on the value of, any security or any group or index of 
        securities.

    ``(c) Antimanipulation Requirements.--A party to a contract of sale 
of a commodity for future delivery (or option on such a contract or on a 
commodity) that is traded on an exempt board of trade shall be subject 
to sections 4b, 4c(b), 4o, 6(c), and 9(a)(2), and the Commission shall 
enforce those provisions with respect to any such trading.

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

    ``(d) Price Discovery.--If the Commission finds that an exempt board 
of trade is a significant source of price discovery for transactions in 
the cash market for the commodity underlying any contract, agreement, or 
transaction traded on or through the facilities of the board of trade, 
the board of trade shall disseminate publicly on a daily basis trading 
volume, opening and closing price ranges, open interest, and other 
trading data as appropriate to the market.
    ``(e) Jurisdiction.--The Commission shall have exclusive 
jurisdiction over any account, agreement, contract, or transaction 
involving a contract of sale of a commodity for future delivery, or 
option on such a contract or on a commodity, to the extent that the 
account, agreement, contract, or transaction is traded on an exempt 
board of trade.
    ``(f ) Subsidiaries.--A board of trade that is designated as a 
contract market or registered as a derivatives transaction execution 
facility may operate an exempt board of trade by establishing a separate 
subsidiary or other legal entity and otherwise satisfying the 
requirements of this section.
    ``(g) An exempt board of trade that meets the requirements of 
subsection (b) shall not represent to any person that the board of trade 
is registered with, or designated, recognized, licensed, or approved by 
the Commission.''.

SEC. 115. SUSPENSION OR REVOCATION OF DESIGNATION AS CONTRACT MARKET.

    Section 5e of the Commodity Exchange Act (7 U.S.C. 7b) (as 
redesignated by section 20(1)) is amended to read as follows:

``SEC. 5e. SUSPENSION OR REVOCATION OF DESIGNATION AS REGISTERED ENTITY.

    ``The failure of a registered entity to comply with any provision of 
this Act, or any regulation or order of the Commission under this Act, 
shall be cause for the suspension of the registered entity for a period 
not to exceed 180 days, or revocation of designation as a registered 
entity in accordance with the procedures and subject to the judicial 
review provided in section 6(b).''.

SEC. 116. AUTHORIZATION OF APPROPRIATIONS.

    Section 12(d) of the Commodity Exchange Act (7 U.S.C. 16(d)) is 
amended by striking ``2000'' and inserting ``2005''.

SEC. 117. PREEMPTION.

    Section 12 of the Commodity Exchange Act (7 U.S.C. 16(e)) is amended 
by striking subsection (e) and inserting the following:
    ``(e) Relation to Other Law, Departments, or Agencies.--
            ``(1) Nothing in this Act shall supersede or preempt--
                    ``(A) criminal prosecution under any Federal 
                criminal statute;
                    ``(B) the application of any Federal or State 
                statute (except as provided in paragraph (2)), including 
                any rule or regulation thereunder, to any transaction in 
                or involving any commodity, product, right, service, or 
                interest--
                          ``(i) that is not conducted on or subject to 
                      the rules of a registered entity or exempt board 
                      of trade;
                          ``(ii) (except as otherwise specified by the 
                      Commission by rule or regulation) that is not 
                      conducted on or subject to the rules of any board 
                      of trade, exchange,

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

                      or market located outside the United States, its 
                      territories or possessions; or
                          ``(iii) that is not subject to regulation by 
                      the Commission under section 4c or 19; or
                    ``(C) the application of any Federal or State 
                statute, including any rule or regulation thereunder, to 
                any person required to be registered or designated under 
                this Act who shall fail or refuse to obtain such 
                registration or designation.
            ``(2) This Act shall supersede and preempt the application 
        of any State or local law that prohibits or regulates gaming or 
        the operation of bucket shops (other than antifraud provisions 
        of general applicability) in the case of--
                    ``(A) an electronic trading facility excluded under 
                section 2(e) of this Act; and
                    ``(B) an agreement, contract, or transaction that is 
                excluded from this Act under section 2(c), 2(d), 2(f ), 
                or 2(g) of this Act or title IV of the Commodity Futures 
                Modernization Act of 2000, or exempted under section 
                2(h) or 4(c) of this Act (regardless of whether any such 
                agreement, contract, or transaction is otherwise subject 
                to this Act).''.

SEC. 118. PREDISPUTE RESOLUTION AGREEMENTS FOR INSTITUTIONAL CUSTOMERS.

    Section 14 of the Commodity Exchange Act (7 U.S.C. 18) is amended by 
striking subsection (g) and inserting the following:
    ``(g) Predispute Resolution Agreements for Institutional 
Customers.--Nothing in this section prohibits a registered futures 
commission merchant from requiring a customer that is an eligible 
contract participant, as a condition to the commission merchant's 
conducting a transaction for the customer, to enter into an agreement 
waiving the right to file a claim under this section.''.

SEC. 119. CONSIDERATION OF COSTS AND BENEFITS AND ANTITRUST LAWS.

    Section 15 of the Commodity Exchange Act (7 U.S.C. 19) is amended by 
striking ``Sec. 15. The Commission'' and inserting the following:

``SEC. 15. CONSIDERATION OF COSTS AND BENEFITS AND ANTITRUST LAWS.

    ``(a) Costs and Benefits.--
            ``(1) In general.--Before promulgating a regulation under 
        this Act or issuing an order (except as provided in paragraph 
        (3)), the Commission shall consider the costs and benefits of 
        the action of the Commission.
            ``(2) Considerations.--The costs and benefits of the 
        proposed Commission action shall be evaluated in light of--
                    ``(A) considerations of protection of market 
                participants and the public;
                    ``(B) considerations of the efficiency, 
                competitiveness, and financial integrity of futures 
                markets;
                    ``(C) considerations of price discovery;
                    ``(D) considerations of sound risk management 
                practices; and
                    ``(E) other public interest considerations.

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

            ``(3) Applicability.--This subsection does not apply to the 
        following actions of the Commission:
                    ``(A) An order that initiates, is part of, or is the 
                result of an adjudicatory or investigative process of 
                the Commission.
                    ``(B) An emergency action.
                    ``(C) A finding of fact regarding compliance with a 
                requirement of the Commission.

    ``(b) Antitrust Laws.--The Commission''.

SEC. 120. CONTRACT ENFORCEMENT BETWEEN ELIGIBLE COUNTERPARTIES.

    Section 22(a) of the Commodity Exchange Act (7 U.S.C. 25(a)) is 
amended by adding at the end the following:
            ``(4) Contract enforcement between eligible 
        counterparties.--No agreement, contract, or transaction between 
        eligible contract participants or persons reasonably believed to 
        be eligible contract participants, and no hybrid instrument sold 
        to any investor, shall be void, voidable, or unenforceable, and 
        no such party shall be entitled to rescind, or recover any 
        payment made with respect to, such an agreement, contract, 
        transaction, or instrument under this section or any other 
        provision of Federal or State law, based solely on the failure 
        of the agreement, contract, transaction, or instrument to comply 
        with the terms or conditions of an exemption or exclusion from 
        any provision of this Act or regulations of the Commission.''.

SEC. 121. SPECIAL PROCEDURES TO ENCOURAGE AND FACILITATE BONA FIDE 
            HEDGING BY AGRICULTURAL PRODUCERS.

    The Commodity Exchange Act, as otherwise amended by this Act, is 
amended by inserting after section 4o the following:

``SEC. 4p. SPECIAL PROCEDURES TO ENCOURAGE AND FACILITATE BONA FIDE 
            HEDGING BY AGRICULTURAL PRODUCERS.

    ``(a) Authority.--The Commission shall consider issuing rules or 
orders which--
            ``(1) prescribe procedures under which each contract market 
        is to provide for orderly delivery, including temporary storage 
        costs, of any agricultural commodity enumerated in section 1a(4) 
        which is the subject of a contract for purchase or sale for 
        future delivery;
            ``(2) increase the ease with which domestic agricultural 
        producers may participate in contract markets, including by 
        addressing cost and margin requirements, so as to better enable 
        the producers to hedge price risk associated with their 
        production;
            ``(3) provide flexibility in the minimum quantities of such 
        agricultural commodities that may be the subject of a contract 
        for purchase or sale for future delivery that is traded on a 
        contract market, to better allow domestic agricultural producers 
        to hedge such price risk; and
            ``(4) encourage contract markets to provide information and 
        otherwise facilitate the participation of domestic agricultural 
        producers in contract markets.

    ``(b) Report.--Within 1 year after the date of the enactment of this 
section, the Commission shall submit to the Committee on Agriculture of 
the House of Representatives and the Committee

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

on Agriculture, Nutrition, and Forestry of the Senate a report on the 
steps it has taken to implement this section and on the activities of 
contract markets pursuant to this section.''.

SEC. 122. RULE OF CONSTRUCTION.

    Except as expressly provided in this Act or an amendment made by 
this Act, nothing in this Act or an amendment made by this Act 
supersedes, affects, or otherwise limits or expands the scope and 
applicability of laws governing the Securities and Exchange Commission.

SEC. 123. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Commodity Exchange Act.--
            (1) Section 1a of the Commodity Exchange Act (7 U.S.C. 1a) 
        (as amended by section 101) is amended--
                    (A) in paragraphs (5), (6), (16), (17), (20), and 
                (23), by inserting ``or derivatives transaction 
                execution facility'' after ``contract market'' each 
                place it appears; and
                    (B) in paragraph (24)--
                          (i) in the paragraph heading, by striking 
                      ``contract market'' and inserting ``registered 
                      entity'';
                          (ii) by striking ``contract market'' each 
                      place it appears and inserting ``registered 
                      entity''; and
                          (iii) by adding at the end the following:
        ``A participant in an alternative trading system that is 
        designated as a contract market pursuant to section 5f is deemed 
        a member of the contract market for purposes of transactions in 
        security futures products through the contract market.''.
            (2) Section 2 of the Commodity Exchange Act (7 U.S.C. 2, 2a, 
        4, 4a, 3) is amended--
                    (A) by striking ``Sec. 2. (a)(1)(A)(i) The'' and 
                inserting the following:

``SEC. 2. JURISDICTION OF COMMISSION; LIABILITY OF PRINCIPAL FOR ACT OF 
            AGENT; COMMODITY FUTURES TRADING COMMISSION; TRANSACTION IN 
            INTERSTATE COMMERCE.

    ``(a) Jurisdiction of Commission; Commodity Futures Trading 
Commission.--
            ``(1) Jurisdiction of commission.--
                    ``(A) In general.--The''; and
                    (B) in subsection (a)(1)--
                          (i) in subparagraph (A) (as amended by 
                      subparagraph (A) of this paragraph)--
                                    (I) by striking ``subparagraph (B) 
                                of this subparagraph'' and inserting 
                                ``subparagraphs (C) and (D) of this 
                                paragraph and subsections (c) through 
                                (i) of this section'';
                                    (II) by striking ``contract market 
                                designated pursuant to section 5 of this 
                                Act'' and inserting ``contract market 
                                designated or derivatives transaction 
                                execution facility registered pursuant 
                                to section 5 or 5a'';
                                    (III) by striking clause (ii); and
                                    (IV) in clause (iii), by striking 
                                ``(iii) The'' and inserting the 
                                following:
                    ``(B) Liability of principal for act of agent.--
                The''; and
                          (ii) in subparagraph (B)--

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

                                    (I) by striking ``(B)'' and 
                                inserting ``(C)'';
                                    (II) in clause (v)--
                                            (aa) by striking ``section 3 
                                        of the Securities Act of 1933''; 
                                        and
                                            (bb) by inserting ``or 
                                        subparagraph (D)'' after 
                                        ``subparagraph''; and
                                    (III) by moving clauses (i) through 
                                (v) 4 ems to the right;
                    (C) in subsection (a)(7), by striking ``contract 
                market'' and inserting ``registered entity'';
                    (D) in subsection (a)(8)(B)(ii)--
                          (i) in the first sentence, by striking 
                      ``designation as a contract market'' and inserting 
                      ``designation or registration as a contract market 
                      or derivatives transaction execution facility'';
                          (ii) in the second sentence, by striking 
                      ``designate a board of trade as a contract 
                      market'' and inserting ``designate or register a 
                      board of trade as a contract market or derivatives 
                      transaction execution facility''; and
                          (iii) in the fourth sentence, by striking 
                      ``designating, or refusing, suspending, or 
                      revoking the designation of, a board of trade as a 
                      contract market involving transactions for future 
                      delivery referred to in this clause or in 
                      considering possible emergency action under 
                      section 8a(9) of this Act'' and inserting 
                      ``designating, registering, or refusing, 
                      suspending, or revoking the designation or 
                      registration of, a board of trade as a contract 
                      market or derivatives transaction execution 
                      facility involving transactions for future 
                      delivery referred to in this clause or in 
                      considering any possible action under this Act 
                      (including without limitation emergency action 
                      under section 8a(9))'', and by striking 
                      ``designation, suspension, revocation, or 
                      emergency action'' and inserting ``designation, 
                      registration, suspension, revocation, or action''; 
                      and
                    (E) in subsection (a), by moving paragraphs (2) 
                through (9) 2 ems to the right.
            (3) Section 4 of the Commodity Exchange Act (7 U.S.C. 6) is 
        amended--
                    (A) in subsection (a)--
                          (i) in paragraph (1), by striking ``designated 
                      by the Commission as a `contract market' for'' and 
                      inserting ``designated or registered by the 
                      Commission as a contract market or derivatives 
                      transaction execution facility for'';
                          (ii) in paragraph (2), by striking ``member of 
                      such''; and
                          (iii) in paragraph (3), by inserting ``or 
                      derivatives transaction execution facility'' after 
                      ``contract market''; and
                    (B) in subsection (c)--
                          (i) in paragraph (1)--
                                    (I) by striking ``designated as a 
                                contract market'' and inserting 
                                ``designated or registered as a contract 
                                market or derivatives transaction 
                                execution facility''; and

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

                                    (II) by striking ``section 
                                2(a)(1)(B)'' and inserting 
                                ``subparagraphs (C)(ii) and (D) of 
                                section 2(a)(1), except that the 
                                Commission and the Securities and 
                                Exchange Commission may by rule, 
                                regulation, or order jointly exclude any 
                                agreement, contract, or transaction from 
                                section 2(a)(1)(D)''; and
                          (ii) in paragraph (2)(B)(ii), by inserting 
                      ``or derivatives transaction execution facility'' 
                      after ``contract market''.
            (4) Section 4a of the Commodity Exchange Act (7 U.S.C. 6a) 
        is amended--
                    (A) in subsection (a)--
                          (i) in the first sentence, by inserting ``or 
                      derivatives transaction execution facilities'' 
                      after ``contract markets''; and
                          (ii) in the second sentence, by inserting ``or 
                      derivatives transaction execution facility'' after 
                      ``contract market'';
                    (B) in subsection (b)--
                          (i) in paragraph (1), by inserting ``, or 
                      derivatives transaction execution facility or 
                      facilities,'' after ``markets''; and
                          (ii) in paragraph (2), by inserting ``or 
                      derivatives transaction execution facility'' after 
                      ``contract market''; and
                    (C) in subsection (e)--
                          (i) by striking ``contract market or'' each 
                      place it appears and inserting ``contract market, 
                      derivatives transaction execution facility, or'';
                          (ii) by striking ``licensed or designated'' 
                      each place it appears and inserting ``licensed, 
                      designated, or registered''; and
                          (iii) by striking ``contract market, or'' and 
                      inserting ``contract market or derivatives 
                      transaction execution facility, or''.
            (5) Section 4b(a) of the Commodity Exchange Act (7 U.S.C. 
        6b(a)) is amended by striking ``contract market'' each place it 
        appears and inserting ``registered entity''.
            (6) Sections 4c(g), 4d, 4e, and 4f of the Commodity Exchange 
        Act (7 U.S.C. 6c(g), 6d, 6e, 6f ) are amended by inserting ``or 
        derivatives transaction execution facility'' after ``contract 
        market'' each place it appears.
            (7) Section 4g of the Commodity Exchange Act (7 U.S.C. 6g) 
        is amended--
                    (A) in subsection (b), by striking ``clearinghouse 
                and contract market'' and inserting ``registered 
                entity''; and
                    (B) in subsection (f ), by striking 
                ``clearinghouses, contract markets, and exchanges'' and 
                inserting ``registered entities''.
            (8) Section 4h of the Commodity Exchange Act (7 U.S.C. 6h) 
        is amended by striking ``contract market'' each place it appears 
        and inserting ``registered entity''.
            (9) Section 4i of the Commodity Exchange Act (7 U.S.C. 6i) 
        is amended in the first sentence by inserting ``or derivatives 
        transaction execution facility'' after ``contract market''.

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

            (10) Section 4l of the Commodity Exchange Act (7 U.S.C. 6l) 
        is amended by inserting ``or derivatives transaction execution 
        facilities'' after ``contract markets'' each place it appears.
            (11) Section 4p of the Commodity Exchange Act (7 U.S.C. 6p) 
        is amended--
                    (A) in the third sentence of subsection (a), by 
                striking ``Act or contract markets'' and inserting 
                ``Act, contract markets, or derivatives transaction 
                execution facilities''; and
                    (B) in subsection (b), by inserting ``derivatives 
                transaction execution facility,'' after ``contract 
                market,''.
            (12) Section 6 of the Commodity Exchange Act (7 U.S.C. 8, 9, 
        9a, 9b, 13b, 15) is amended--
                    (A) in subsection (a)--
                          (i) in the first sentence--
                                    (I) by striking ``board of trade 
                                desiring to be designated a `contract 
                                market' shall make application to the 
                                Commission for such designation'' and 
                                inserting ``person desiring to be 
                                designated or registered as a contract 
                                market or derivatives transaction 
                                execution facility shall make 
                                application to the Commission for the 
                                designation or registration'';
                                    (II) by striking ``above 
                                conditions'' and inserting ``conditions 
                                set forth in this Act''; and
                                    (III) by striking ``above 
                                requirements'' and inserting ``the 
                                requirements of this Act'';
                          (ii) in the second sentence, by striking 
                      ``designation as a contract market within one 
                      year'' and inserting ``designation or registration 
                      as a contract market or derivatives transaction 
                      execution facility within 180 days'';
                          (iii) in the third sentence--
                                    (I) by striking ``board of trade'' 
                                and inserting ``person''; and
                                    (II) by striking ``one-year period'' 
                                and inserting ``180-day period''; and
                          (iv) in the last sentence, by striking 
                      ``designate as a `contract market' any board of 
                      trade that has made application therefor, such 
                      board of trade'' and inserting ``designate or 
                      register as a contract market or derivatives 
                      transaction execution facility any person that has 
                      made application therefor, the person'';
                    (B) in subsection (b)--
                          (i) in the first sentence--
                                    (I) by striking ``designation of any 
                                board of trade as a `contract market' 
                                upon'' and inserting ``designation or 
                                registration of any contract market or 
                                derivatives transaction execution 
                                facility on'';
                                    (II) by striking ``board of trade'' 
                                each place it appears and inserting 
                                ``contract market or derivatives 
                                transaction execution facility''; and
                                    (III) by striking ``designation as 
                                set forth in section 5 of this Act'' and 
                                inserting ``designation or registration 
                                as set forth in sections 5 through 5b or 
                                section 5f'';
                          (ii) in the second sentence--

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

                                    (I) by striking ``board of trade'' 
                                the first place it appears and inserting 
                                ``contract market or derivatives 
                                transaction execution facility''; and
                                    (II) by striking ``board of trade'' 
                                the second and third places it appears 
                                and inserting ``person''; and
                          (iii) in the last sentence, by striking 
                      ``board of trade'' each place it appears and 
                      inserting ``person'';
                    (C) in subsection (c)--
                          (i) by striking ``contract market'' each place 
                      it appears and inserting ``registered entity'';
                          (ii) by striking ``contract markets'' each 
                      place it appears and inserting ``registered 
                      entities''; and
                          (iii) by striking ``trading privileges'' each 
                      place it appears and inserting ``privileges'';
                    (D) in subsection (d), by striking ``contract 
                market'' each place it appears and inserting 
                ``registered entity''; and
                    (E) in subsection (e), by striking ``trading on all 
                contract markets'' each place it appears and inserting 
                ``the privileges of all registered entities''.
            (13) Section 6a of the Commodity Exchange Act (7 U.S.C. 10a) 
        is amended--
                    (A) in the first sentence of subsection (a), by 
                striking ``designated as a `contract market' shall'' and 
                inserting ``designated or registered as a contract 
                market or a derivatives transaction execution 
                facility''; and
                    (B) in subsection (b), by striking ``designated as a 
                contract market'' and inserting ``designated or 
                registered as a contract market or a derivatives 
                transaction execution facility''.
            (14) Section 6b of the Commodity Exchange Act (7 U.S.C. 13a) 
        is amended--
                    (A) by striking ``contract market'' each place it 
                appears and inserting ``registered entity'';
                    (B) in the first sentence, by striking ``designation 
                as set forth in section 5 of this Act'' and inserting 
                ``designation or registration as set forth in sections 5 
                through 5c''; and
                    (C) in the last sentence, by striking ``the contract 
                market's ability'' and inserting ``the ability of the 
                registered entity''.
            (15) Section 6c(a) of the Commodity Exchange Act (7 U.S.C. 
        13a-1(a)) by striking ``contract market'' and inserting 
        ``registered entity''.
            (16) Section 6d(1) of the Commodity Exchange Act (7 U.S.C. 
        13a-2(1)) is amended by inserting ``derivatives transaction 
        execution facility,'' after ``contract market,''.
            (17) Section 7 of the Commodity Exchange Act (7 U.S.C. 11) 
        is amended--
                    (A) in the first sentence--
                          (i) by striking ``board of trade'' and 
                      inserting ``person'';
                          (ii) by inserting ``or registered'' after 
                      ``designated'';
                          (iii) by inserting ``or registration'' after 
                      ``designation'' each place it appears; and
                          (iv) by striking ``contract market'' each 
                      place it appears and inserting ``registered 
                      entity'';

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

                    (B) in the second sentence--
                          (i) by striking ``designation of such board of 
                      trade as a contract market'' and inserting 
                      ``designation or registration of the registered 
                      entity''; and
                          (ii) by striking ``contract markets'' and 
                      inserting ``registered entities''; and
                    (C) in the last sentence--
                          (i) by striking ``board of trade'' and 
                      inserting ``person''; and
                          (ii) by striking ``designated again a contract 
                      market'' and inserting ``designated or registered 
                      again a registered entity''.
            (18) Section 8(c) of the Commodity Exchange Act (7 U.S.C. 
        12(c)) is amended in the first sentence by striking ``board of 
        trade'' and inserting ``registered entity''.
            (19) Section 8a of the Commodity Exchange Act (7 U.S.C. 12a) 
        is amended--
                    (A) by striking ``contract market'' each place it 
                appears and inserting ``registered entity''; and
                    (B) in paragraph (2)(F), by striking ``trading 
                privileges'' and inserting ``privileges''.
            (20) Sections 8b and 8c(e) of the Commodity Exchange Act (7 
        U.S.C. 12b, 12c(e)) are amended by striking ``contract market'' 
        each place it appears and inserting ``registered entity''.
            (21) Section 8e of the Commodity Exchange Act (7 U.S.C. 12e) 
        is repealed.
            (22) Section 9 of the Commodity Exchange Act (7 U.S.C. 13) 
        is amended by striking ``contract market'' each place it appears 
        and inserting ``registered entity''.
            (23) Section 14 of the Commodity Exchange Act (7 U.S.C. 18) 
        is amended--
                    (A) in subsection (a)(1)(B), by striking ``contract 
                market'' and inserting ``registered entity''; and
                    (B) in subsection (f ), by striking ``contract 
                markets'' and inserting ``registered entities''.
            (24) Section 17 of the Commodity Exchange Act (7 U.S.C. 21) 
        is amended by striking ``contract market'' each place it appears 
        and inserting ``registered entity''.
            (25) Section 22 of the Commodity Exchange Act (7 U.S.C. 25) 
        is amended--
                    (A) in subsection (a)--
                          (i) in paragraph (1)--
                                    (I) by striking ``contract market, 
                                clearing organization of a contract 
                                market, licensed board of trade,'' and 
                                inserting ``registered entity''; and
                                    (II) in subparagraph (C)(i), by 
                                striking ``contract market'' and 
                                inserting ``registered entity'';
                          (ii) in paragraph (2), by striking ``sections 
                      5a(11),'' and inserting ``sections 5(d)(13), 
                      5b(b)(1)(E),''; and
                          (iii) in paragraph (3), by striking ``contract 
                      market'' and inserting ``registered entity''; and
                    (B) in subsection (b)--
                          (i) in paragraph (1)--
                                    (I) by striking ``contract market or 
                                clearing organization of a contract 
                                market'' and inserting ``registered 
                                entity'';

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

                                    (II) by striking ``section 5a(8) and 
                                section 5a(9) of this Act'' and 
                                inserting ``sections 5 through 5c'';
                                    (III) by striking ``contract market, 
                                clearing organization of a contract 
                                market, or licensed board of trade'' and 
                                inserting ``registered entity''; and
                                    (IV) by striking ``contract market 
                                or licensed board of trade'' and 
                                inserting ``registered entity'';
                          (ii) in paragraph (3)--
                                    (I) by striking ``a contract market, 
                                clearing organization, licensed board of 
                                trade,'' and inserting ``registered 
                                entity''; and
                                    (II) by striking ``contract market, 
                                licensed board of trade'' and inserting 
                                ``registered entity'';
                          (iii) in paragraph (4), by striking ``contract 
                      market, licensed board of trade, clearing 
                      organization,'' and inserting ``registered 
                      entity''; and
                          (iv) in paragraph (5), by striking ``contract 
                      market, licensed board of trade, clearing 
                      organization,'' and inserting ``registered 
                      entity''.

    (b) Federal Deposit Insurance Corporation Improvement Act of 1991.--
Section 402(2) of the Federal Deposit Insurance Corporation Improvement 
Act of 1991 (12 U.S.C. 4402(2)) is amended by striking subparagraph (B) 
and inserting the following:
                    ``(B) that is registered as a derivatives clearing 
                organization under section 5b of the Commodity Exchange 
                Act.''.

SEC. 124. PRIVACY.

    The Commodity Exchange Act (7 U.S.C. 1 et seq.) is amended by 
inserting after section 5f (as added by section 252) the following:

``SEC. 5g. PRIVACY.

    ``(a) Treatment as Financial Institutions.--Notwithstanding section 
509(3)(B) of the Gramm-Leach-Bliley Act, any futures commission 
merchant, commodity trading advisor, commodity pool operator, or 
introducing broker that is subject to the jurisdiction of the Commission 
under this Act with respect to any financial activity shall be treated 
as a financial institution for purposes of title V of such Act with 
respect to such financial activity.
    ``(b) Treatment of CFTC as Federal Functional Regulator.--For 
purposes of title V of such Act, the Commission shall be treated as a 
Federal functional regulator within the meaning of section 509(2) of 
such Act and shall prescribe regulations under such title within 6 
months after the date of the enactment of this section.''.

SEC. 125. REPORT TO CONGRESS.

    (a) The Commodity Futures Trading Commission (in this section 
referred to as the ``Commission'') shall undertake and complete a study 
of the Commodity Exchange Act (in this section referred to as ``the 
Act'') and the Commission's rules, regulations and orders governing the 
conduct of persons required to be registered under the Act, not later 
than 1 year after the date of the enactment of this Act. The study shall 
identify--
            (1) the core principles and interpretations of acceptable 
        business practices that the Commission has adopted or intends

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

        to adopt to replace the provisions of the Act and the 
        Commission's rules and regulations thereunder;
            (2) the rules and regulations that the Commission has 
        determined must be retained and the reasons therefor;
            (3) the extent to which the Commission believes it can 
        effect the changes identified in paragraph (1) of this 
        subsection through its exemptive authority under section 4(c) of 
        the Act; and
            (4) the regulatory functions the Commission currently 
        performs that can be delegated to a registered futures 
        association (within the meaning of the Act) and the regulatory 
        functions that the Commission has determined must be retained 
        and the reasons therefor.

    (b) In conducting the study, the Commission shall solicit the views 
of the public as well as Commission registrants, registered entities, 
and registered futures associations (all within the meaning of the Act).
    (c) The Commission shall transmit to the Committee on Agriculture of 
the House of Representatives and the Committee on Agriculture, 
Nutrition, and Forestry of the Senate a report of the results of its 
study, which shall include an analysis of comments received.

SEC. 126. INTERNATIONAL ACTIVITIES OF THE COMMODITY FUTURES TRADING 
            COMMISSION.

    (a) Findings.--The Congress finds that--
            (1) derivatives markets serving United States industry are 
        increasingly global in scope;
            (2) developments in data processing and communications 
        technologies enable users of risk management services to analyze 
        and compare those services on a worldwide basis;
            (3) financial services regulatory policy must be flexible to 
        account for rapidly changing derivatives industry business 
        practices;
            (4) regulatory impediments to the operation of global 
        business interests can compromise the competitiveness of United 
        States businesses;
            (5) events that disrupt financial markets and economies are 
        often global in scope, require rapid regulatory response, and 
        coordinated regulatory effort across international 
        jurisdictions;
            (6) through its membership in the International Organisation 
        of Securities Commissions, the Commodity Futures Trading 
        Commission has promoted beneficial communication among market 
        regulators and international regulatory cooperation; and
            (7) the Commodity Futures Trading Commission and other 
        United States financial regulators and self-regulatory 
        organizations should continue to foster productive and 
        cooperative working relationships with their counterparts in 
        foreign jurisdictions.

    (b) Sense of the Congress.--It is the sense of the Congress that, 
consistent with its responsibilities under the Commodity Exchange Act, 
the Commodity Futures Trading Commission should, as part of its 
international activities, continue to coordinate with

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

foreign regulatory authorities, to participate in international 
regulatory organizations and forums, and to provide technical assistance 
to foreign government authorities, in order to encourage--
            (1) the facilitation of cross-border transactions through 
        the removal or lessening of any unnecessary legal or practical 
        obstacles;
            (2) the development of internationally accepted regulatory 
        standards of best practice;
            (3) the enhancement of international supervisory cooperation 
        and emergency procedures;
            (4) the strengthening of international cooperation for 
        customer and market protection; and
            (5) improvements in the quality and timeliness of 
        international information sharing.

      TITLE II--COORDINATED REGULATION OF SECURITY FUTURES PRODUCTS

                  Subtitle A--Securities Law Amendments

SEC. 201. DEFINITIONS UNDER THE SECURITIES EXCHANGE ACT OF 1934.

    Section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 
78c(a)) is amended--
            (1) in paragraph (10), by inserting ``security future,'' 
        after ``treasury stock,'';
            (2) by striking paragraph (11) and inserting the following:
            ``(11) The term `equity security' means any stock or similar 
        security; or any security future on any such security; or any 
        security convertible, with or without consideration, into such a 
        security, or carrying any warrant or right to subscribe to or 
        purchase such a security; or any such warrant or right; or any 
        other security which the Commission shall deem to be of similar 
        nature and consider necessary or appropriate, by such rules and 
        regulations as it may prescribe in the public interest or for 
        the protection of investors, to treat as an equity security.'';
            (3) in paragraph (13), by adding at the end the following: 
        ``For security futures products, such term includes any 
        contract, agreement, or transaction for future delivery.'';
            (4) in paragraph (14), by adding at the end the following: 
        ``For security futures products, such term includes any 
        contract, agreement, or transaction for future delivery.''; and
            (5) by adding at the end the following:
            ``(55)(A) The term `security future' means a contract of 
        sale for future delivery of a single security or of a narrow-
        based security index, including any interest therein or based on 
        the value thereof, except an exempted security under section 
        3(a)(12) of the Securities Exchange Act of 1934 as in effect on 
        the date of the enactment of the Futures Trading Act of 1982 
        (other than any municipal security as defined in section 
        3(a)(29) as in effect on the date of the enactment of the 
        Futures Trading Act of 1982). The term `security future' does 
        not include any agreement, contract, or transaction excluded 
        from the Commodity Exchange Act under section 2(c), 2(d), 2(f ), 
        or 2(g)

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

        of the Commodity Exchange Act (as in effect on the date of the 
        enactment of the Commodity Futures Modernization Act of 2000) or 
        title IV of the Commodity Futures Modernization Act of 2000.
            ``(B) The term `narrow-based security index' means an 
        index--
                    ``(i) that has 9 or fewer component securities;
                    ``(ii) in which a component security comprises more 
                than 30 percent of the index's weighting;
                    ``(iii) in which the five highest weighted component 
                securities in the aggregate comprise more than 60 
                percent of the index's weighting; or
                    ``(iv) in which the lowest weighted component 
                securities comprising, in the aggregate, 25 percent of 
                the index's weighting have an aggregate dollar value of 
                average daily trading volume of less than $50,000,000 
                (or in the case of an index with 15 or more component 
                securities, $30,000,000), except that if there are two 
                or more securities with equal weighting that could be 
                included in the calculation of the lowest weighted 
                component securities comprising, in the aggregate, 25 
                percent of the index's weighting, such securities shall 
                be ranked from lowest to highest dollar value of average 
                daily trading volume and shall be included in the 
                calculation based on their ranking starting with the 
                lowest ranked security.
            ``(C) Notwithstanding subparagraph (B), an index is not a 
        narrow-based security index if--
                    ``(i)(I) it has at least nine component securities;
                    ``(II) no component security comprises more than 30 
                percent of the index's weighting; and
                    ``(III) each component security is--
                          ``(aa) registered pursuant to section 12 of 
                      the Securities Exchange Act of 1934;
                          ``(bb) one of 750 securities with the largest 
                      market capitalization; and
                          ``(cc) one of 675 securities with the largest 
                      dollar value of average daily trading volume;
                    ``(ii) a board of trade was designated as a contract 
                market by the Commodity Futures Trading Commission with 
                respect to a contract of sale for future delivery on the 
                index, before the date of the enactment of the Commodity 
                Futures Modernization Act of 2000;
                    ``(iii)(I) a contract of sale for future delivery on 
                the index traded on a designated contract market or 
                registered derivatives transaction execution facility 
                for at least 30 days as a contract of sale for future 
                delivery on an index that was not a narrow-based 
                security index; and
                    ``(II) it has been a narrow-based security index for 
                no more than 45 business days over 3 consecutive 
                calendar months;
                    ``(iv) a contract of sale for future delivery on the 
                index is traded on or subject to the rules of a foreign 
                board of trade and meets such requirements as are 
                jointly established by rule or regulation by the 
                Commission and the Commodity Futures Trading Commission;

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

                    ``(v) no more than 18 months have passed since the 
                date of the enactment of the Commodity Futures 
                Modernization Act of 2000 and--
                          ``(I) it is traded on or subject to the rules 
                      of a foreign board of trade;
                          ``(II) the offer and sale in the United States 
                      of a contract of sale for future delivery on the 
                      index was authorized before the date of the 
                      enactment of the Commodity Futures Modernization 
                      Act of 2000; and
                          ``(III) the conditions of such authorization 
                      continue to be met; or
                    ``(vi) a contract of sale for future delivery on the 
                index is traded on or subject to the rules of a board of 
                trade and meets such requirements as are jointly 
                established by rule, regulation, or order by the 
                Commission and the Commodity Futures Trading Commission.
            ``(D) Within 1 year after the enactment of the Commodity 
        Futures Modernization Act of 2000, the Commission and the 
        Commodity Futures Trading Commission jointly shall adopt rules 
        or regulations that set forth the requirements under clause (iv) 
        of subparagraph (C).
            ``(E) An index that is a narrow-based security index solely 
        because it was a narrow-based security index for more than 45 
        business days over 3 consecutive calendar months pursuant to 
        clause (iii) of subparagraph (C) shall not be a narrow-based 
        security index for the 3 following calendar months.
            ``(F) For purposes of subparagraphs (B) and (C) of this 
        paragraph--
                    ``(i) the dollar value of average daily trading 
                volume and the market capitalization shall be calculated 
                as of the preceding 6 full calendar months; and
                    ``(ii) the Commission and the Commodity Futures 
                Trading Commission shall, by rule or regulation, jointly 
                specify the method to be used to determine market 
                capitalization and dollar value of average daily trading 
                volume.
            ``(56) The term `security futures product' means a security 
        future or any put, call, straddle, option, or privilege on any 
        security future.
            ``(57)(A) The term `margin', when used with respect to a 
        security futures product, means the amount, type, and form of 
        collateral required to secure any extension or maintenance of 
        credit, or the amount, type, and form of collateral required as 
        a performance bond related to the purchase, sale, or carrying of 
        a security futures product.
            ``(B) The terms `margin level' and `level of margin', when 
        used with respect to a security futures product, mean the amount 
        of margin required to secure any extension or maintenance of 
        credit, or the amount of margin required as a performance bond 
        related to the purchase, sale, or carrying of a security futures 
        product.
            ``(C) The terms `higher margin level' and `higher level of 
        margin', when used with respect to a security futures product, 
        mean a margin level established by a national securities 
        exchange registered pursuant to section 6(g) that is higher than 
        the minimum amount established and in effect pursuant to section 
        7(c)(2)(B).''.

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

SEC. 202. REGULATORY RELIEF FOR MARKETS TRADING SECURITY FUTURES 
            PRODUCTS.

    (a) Expedited Registration and Exemption.--Section 6 of the 
Securities Exchange Act of 1934 (15 U.S.C. 78f ) is amended by adding at 
the end the following:
    ``(g) Notice Registration of Security Futures Product Exchanges.--
            ``(1) Registration required.--An exchange that lists or 
        trades security futures products may register as a national 
        securities exchange solely for the purposes of trading security 
        futures products if--
                    ``(A) the exchange is a board of trade, as that term 
                is defined by the Commodity Exchange Act (7 U.S.C. 
                1a(2)), that--
                          ``(i) has been designated a contract market by 
                      the Commodity Futures Trading Commission and such 
                      designation is not suspended by order of the 
                      Commodity Futures Trading Commission; or
                          ``(ii) is registered as a derivative 
                      transaction execution facility under section 5a of 
                      the Commodity Exchange Act and such registration 
                      is not suspended by the Commodity Futures Trading 
                      Commission; and
                    ``(B) such exchange does not serve as a market place 
                for transactions in securities other than--
                          ``(i) security futures products; or
                          ``(ii) futures on exempted securities or 
                      groups or indexes of securities or options thereon 
                      that have been authorized under section 2(a)(1)(C) 
                      of the Commodity Exchange Act.
            ``(2) Registration by notice filing.--
                    ``(A) Form and content.--An exchange required to 
                register only because such exchange lists or trades 
                security futures products may register for purposes of 
                this section by filing with the Commission a written 
                notice in such form as the Commission, by rule, may 
                prescribe containing the rules of the exchange and such 
                other information and documents concerning such 
                exchange, comparable to the information and documents 
                required for national securities exchanges under section 
                6(a), as the Commission, by rule, may prescribe as 
                necessary or appropriate in the public interest or for 
                the protection of investors. If such exchange has filed 
                documents with the Commodity Futures Trading Commission, 
                to the extent that such documents contain information 
                satisfying the Commission's informational requirements, 
                copies of such documents may be filed with the 
                Commission in lieu of the required written notice.
                    ``(B) Immediate effectiveness.--Such registration 
                shall be effective contemporaneously with the submission 
                of notice, in written or electronic form, to the 
                Commission, except that such registration shall not be 
                effective if such registration would be subject to 
                suspension or revocation.
                    ``(C) Termination.--Such registration shall be 
                terminated immediately if any of the conditions for 
                registration set forth in this subsection are no longer 
                satisfied.
            ``(3) Public availability.--The Commission shall promptly 
        publish in the Federal Register an acknowledgment of receipt

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

        of all notices the Commission receives under this subsection and 
        shall make all such notices available to the public.
            ``(4) Exemption of exchanges from specified provisions.--
                    ``(A) Transaction exemptions.--An exchange that is 
                registered under paragraph (1) of this subsection shall 
                be exempt from, and shall not be required to enforce 
                compliance by its members with, and its members shall 
                not, solely with respect to those transactions effected 
                on such exchange in security futures products, be 
                required to comply with, the following provisions of 
                this title and the rules thereunder:
                          ``(i) Subsections (b)(2), (b)(3), (b)(4), 
                      (b)(7), (b)(9), (c), (d), and (e) of this section.
                          ``(ii) Section 8.
                          ``(iii) Section 11.
                          ``(iv) Subsections (d), (f ), and (k) of 
                      section 17.
                          ``(v) Subsections (a), (f ), and (h) of 
                      section 19.
                    ``(B) Rule change exemptions.--An exchange that 
                registered under paragraph (1) of this subsection shall 
                also be exempt from submitting proposed rule changes 
                pursuant to section 19(b) of this title, except that--
                          ``(i) such exchange shall file proposed rule 
                      changes related to higher margin levels, fraud or 
                      manipulation, recordkeeping, reporting, listing 
                      standards, or decimal pricing for security futures 
                      products, sales practices for security futures 
                      products for persons who effect transactions in 
                      security futures products, or rules effectuating 
                      such exchange's obligation to enforce the 
                      securities laws pursuant to section 19(b)(7);
                          ``(ii) such exchange shall file pursuant to 
                      sections 19(b)(1) and 19(b)(2) proposed rule 
                      changes related to margin, except for changes 
                      resulting in higher margin levels; and
                          ``(iii) such exchange shall file pursuant to 
                      section 19(b)(1) proposed rule changes that have 
                      been abrogated by the Commission pursuant to 
                      section 19(b)(7)(C).
            ``(5) Trading in security futures products.--
                    ``(A) In general.--Subject to subparagraph (B), it 
                shall be unlawful for any person to execute or trade a 
                security futures product until the later of--
                          ``(i) 1 year after the date of the enactment 
                      of the Commodity Futures Modernization Act of 
                      2000; or
                          ``(ii) such date that a futures association 
                      registered under section 17 of the Commodity 
                      Exchange Act has met the requirements set forth in 
                      section 15A(k)(2) of this title.
                    ``(B) Principal-to-principal transactions.--
                Notwithstanding subparagraph (A), a person may execute 
                or trade a security futures product transaction if--
                          ``(i) the transaction is entered into--
                                    ``(I) on a principal-to-principal 
                                basis between parties trading for their 
                                own accounts or as described in section 
                                1a(12)(B)(ii) of the Commodity Exchange 
                                Act; and

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

                                    ``(II) only between eligible 
                                contract participants (as defined in 
                                subparagraphs (A), (B)(ii), and (C) of 
                                such section 1a(12)) at the time at 
                                which the persons enter into the 
                                agreement, contract, or transaction; and
                          ``(ii) the transaction is entered into on or 
                      after the later of--
                                    ``(I) 8 months after the date of the 
                                enactment of the Commodity Futures 
                                Modernization Act of 2000; or
                                    ``(II) such date that a futures 
                                association registered under section 17 
                                of the Commodity Exchange Act has met 
                                the requirements set forth in section 
                                15A(k)(2) of this title.''.

    (b) Commission Review of Proposed Rule Changes.--
            (1) Expedited review.--Section 19(b) of the Securities 
        Exchange Act of 1934 (15 U.S.C. 78s(b)) is amended by adding at 
        the end the following:
            ``(7) Security futures product rule changes.--
                    ``(A) Filing required.--A self-regulatory 
                organization that is an exchange registered with the 
                Commission pursuant to section 6(g) of this title or 
                that is a national securities association registered 
                pursuant to section 15A(k) of this title shall file with 
                the Commission, in accordance with such rules as the 
                Commission may prescribe, copies of any proposed rule 
                change or any proposed change in, addition to, or 
                deletion from the rules of such self-regulatory 
                organization (hereinafter in this paragraph collectively 
                referred to as a `proposed rule change') that relates to 
                higher margin levels, fraud or manipulation, 
                recordkeeping, reporting, listing standards, or decimal 
                pricing for security futures products, sales practices 
                for security futures products for persons who effect 
                transactions in security futures products, or rules 
                effectuating such self-regulatory organization's 
                obligation to enforce the securities laws. Such proposed 
                rule change shall be accompanied by a concise general 
                statement of the basis and purpose of such proposed rule 
                change. The Commission shall, upon the filing of any 
                proposed rule change, promptly publish notice thereof 
                together with the terms of substance of the proposed 
                rule change or a description of the subjects and issues 
                involved. The Commission shall give interested persons 
                an opportunity to submit data, views, and arguments 
                concerning such proposed rule change.
                    ``(B) Filing with cftc.--A proposed rule change 
                filed with the Commission pursuant to subparagraph (A) 
                shall be filed concurrently with the Commodity Futures 
                Trading Commission. Such proposed rule change may take 
                effect upon filing of a written certification with the 
                Commodity Futures Trading Commission under section 5c(c) 
                of the Commodity Exchange Act, upon a determination by 
                the Commodity Futures Trading Commission that review of 
                the proposed rule change is not necessary, or upon 
                approval of the proposed rule change by the Commodity 
                Futures Trading Commission.
                    ``(C) Abrogation of rule changes.--Any proposed rule 
                change of a self-regulatory organization that has taken

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

                effect pursuant to subparagraph (B) may be enforced by 
                such self-regulatory organization to the extent such 
                rule is not inconsistent with the provisions of this 
                title, the rules and regulations thereunder, and 
                applicable Federal law. At any time within 60 days of 
                the date of the filing of a written certification with 
                the Commodity Futures Trading Commission under section 
                5c(c) of the Commodity Exchange Act, the date the 
                Commodity Futures Trading Commission determines that 
                review of such proposed rule change is not necessary, or 
                the date the Commodity Futures Trading Commission 
                approves such proposed rule change, the Commission, 
                after consultation with the Commodity Futures Trading 
                Commission, may summarily abrogate the proposed rule 
                change and require that the proposed rule change be 
                refiled in accordance with the provisions of paragraph 
                (1), if it appears to the Commission that such proposed 
                rule change unduly burdens competition or efficiency, 
                conflicts with the securities laws, or is inconsistent 
                with the public interest and the protection of 
                investors. Commission action pursuant to the preceding 
                sentence shall not affect the validity or force of the 
                rule change during the period it was in effect and shall 
                not be reviewable under section 25 of this title nor 
                deemed to be a final agency action for purposes of 
                section 704 of title 5, United States Code.
                    ``(D) Review of resubmitted abrogated rules.--
                          ``(i) Proceedings.--Within 35 days of the date 
                      of publication of notice of the filing of a 
                      proposed rule change that is abrogated in 
                      accordance with subparagraph (C) and refiled in 
                      accordance with paragraph (1), or within such 
                      longer period as the Commission may designate up 
                      to 90 days after such date if the Commission finds 
                      such longer period to be appropriate and publishes 
                      its reasons for so finding or as to which the 
                      self-regulatory organization consents, the 
                      Commission shall--
                                    ``(I) by order approve such proposed 
                                rule change; or
                                    ``(II) after consultation with the 
                                Commodity Futures Trading Commission, 
                                institute proceedings to determine 
                                whether the proposed rule change should 
                                be disapproved. Proceedings under 
                                subclause (II) shall include notice of 
                                the grounds for disapproval under 
                                consideration and opportunity for 
                                hearing and be concluded within 180 days 
                                after the date of publication of notice 
                                of the filing of the proposed rule 
                                change. At the conclusion of such 
                                proceedings, the Commission, by order, 
                                shall approve or disapprove such 
                                proposed rule change. The Commission may 
                                extend the time for conclusion of such 
                                proceedings for up to 60 days if the 
                                Commission finds good cause for such 
                                extension and publishes its reasons for 
                                so finding or for such longer period as 
                                to which the self-regulatory 
                                organization consents.

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

                          ``(ii) Grounds for approval.--The Commission 
                      shall approve a proposed rule change of a self-
                      regulatory organization under this subparagraph if 
                      the Commission finds that such proposed rule 
                      change does not unduly burden competition or 
                      efficiency, does not conflict with the securities 
                      laws, and is not inconsistent with the public 
                      interest or the protection of investors. The 
                      Commission shall disapprove such a proposed rule 
                      change of a self-regulatory organization if it 
                      does not make such finding. The Commission shall 
                      not approve any proposed rule change prior to the 
                      30th day after the date of publication of notice 
                      of the filing thereof, unless the Commission finds 
                      good cause for so doing and publishes its reasons 
                      for so finding.''.
            (2) Decimal pricing provisions.--Section 19(b) of the 
        Securities Exchange Act of 1934 (15 U.S.C. 78s(b)) is amended by 
        inserting after paragraph (7), as added by paragraph (1), the 
        following:
            ``(8) Decimal pricing.--Not later than 9 months after the 
        date on which trading in any security futures product commences 
        under this title, all self-regulatory organizations listing or 
        trading security futures products shall file proposed rule 
        changes necessary to implement decimal pricing of security 
        futures products. The Commission may not require such rules to 
        contain equal minimum increments in such decimal pricing.''.
            (3) Consultation provisions.--Section 19(b) of the 
        Securities Exchange Act of 1934 (15 U.S.C. 78s(b)) is amended by 
        inserting after paragraph (8), as added by paragraph (2), the 
        following:
            ``(9) Consultation with cftc.--
                    ``(A) Consultation required.--The Commission shall 
                consult with and consider the views of the Commodity 
                Futures Trading Commission prior to approving or 
                disapproving a proposed rule change filed by a national 
                securities association registered pursuant to section 
                15A(a) or a national securities exchange subject to the 
                provisions of subsection (a) that primarily concerns 
                conduct related to transactions in security futures 
                products, except where the Commission determines that an 
                emergency exists requiring expeditious or summary action 
                and publishes its reasons therefor.
                    ``(B) Responses to cftc comments and findings.--If 
                the Commodity Futures Trading Commission comments in 
                writing to the Commission on a proposed rule that has 
                been published for comment, the Commission shall respond 
                in writing to such written comment before approving or 
                disapproving the proposed rule. If the Commodity Futures 
                Trading Commission determines, and notifies the 
                Commission, that such rule, if implemented or as 
                applied, would--
                          ``(i) adversely affect the liquidity or 
                      efficiency of the market for security futures 
                      products; or
                          ``(ii) impose any burden on competition not 
                      necessary or appropriate in furtherance of the 
                      purposes of this section,
                the Commission shall, prior to approving or disapproving 
                the proposed rule, find that such rule is necessary and

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

                appropriate in furtherance of the purposes of this 
                section notwithstanding the Commodity Futures Trading 
                Commission's determination.''.

    (c) Review of Disciplinary Proceedings.--Section 19(d) of the 
Securities Exchange Act of 1934 (15 U.S.C. 78s(d)) is amended by adding 
at the end the following:
    ``(3) The provisions of this subsection shall apply to an exchange 
registered pursuant to section 6(g) of this title or a national 
securities association registered pursuant to section 15A(k) of this 
title only to the extent that such exchange or association imposes any 
final disciplinary sanction for--
            ``(A) a violation of the Federal securities laws or the 
        rules and regulations thereunder; or
            ``(B) a violation of a rule of such exchange or association, 
        as to which a proposed change would be required to be filed 
        under section 19 of this title, except that, to the extent that 
        the exchange or association rule violation relates to any 
        account, agreement, contract, or transaction, this subsection 
        shall apply only to the extent such violation involves a 
        security futures product.''.

SEC. 203. REGULATORY RELIEF FOR INTERMEDIARIES TRADING SECURITY FUTURES 
            PRODUCTS.

    (a) Expedited Registration and Exemptions.--
            (1) Amendment.--Section 15(b) of the Securities Exchange Act 
        of 1934 (15 U.S.C. 78o(b)) is amended by adding at the end the 
        following:
            ``(11) Broker/dealer registration with respect to 
        transactions in security futures products.--
                    ``(A) Notice registration.--
                          ``(i) Contents of notice.--Notwithstanding 
                      paragraphs (1) and (2), a broker or dealer 
                      required to register only because it effects 
                      transactions in security futures products on an 
                      exchange registered pursuant to section 6(g) may 
                      register for purposes of this section by filing 
                      with the Commission a written notice in such form 
                      and containing such information concerning such 
                      broker or dealer and any persons associated with 
                      such broker or dealer as the Commission, by rule, 
                      may prescribe as necessary or appropriate in the 
                      public interest or for the protection of 
                      investors. A broker or dealer may not register 
                      under this paragraph unless that broker or dealer 
                      is a member of a national securities association 
                      registered under section 15A(k).
                          ``(ii) Immediate effectiveness.--Such 
                      registration shall be effective contemporaneously 
                      with the submission of notice, in written or 
                      electronic form, to the Commission, except that 
                      such registration shall not be effective if the 
                      registration would be subject to suspension or 
                      revocation under paragraph (4).
                          ``(iii) Suspension.--Such registration shall 
                      be suspended immediately if a national securities 
                      association registered pursuant to section 15A(k) 
                      of this title suspends the membership of that 
                      broker or dealer.
                          ``(iv) Termination.--Such registration shall 
                      be terminated immediately if any of the above 
                      stated

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

                      conditions for registration set forth in this 
                      paragraph are no longer satisfied.
                    ``(B) Exemptions for registered brokers and 
                dealers.--A broker or dealer registered pursuant to the 
                requirements of subparagraph (A) shall be exempt from 
                the following provisions of this title and the rules 
                thereunder with respect to transactions in security 
                futures products:
                          ``(i) Section 8.
                          ``(ii) Section 11.
                          ``(iii) Subsections (c)(3) and (c)(5) of this 
                      section.
                          ``(iv) Section 15B.
                          ``(v) Section 15C.
                          ``(vi) Subsections (d), (e), (f ), (g), (h), 
                      and (i) of section 17.''.
            (2) Conforming amendment.--Section 28(e) of the Securities 
        Exchange Act of 1934 (15 U.S.C. 78bb(e)) is amended by adding at 
        the end the following:

    ``(4) The provisions of this subsection shall not apply with regard 
to securities that are security futures products.''.
    (b) Floor Brokers and Floor Traders.--Section 15(b) of the 
Securities Exchange Act of 1934 (15 U.S.C. 78o(b)) is amended by 
inserting after paragraph (11), as added by subsection (a), the 
following:
            ``(12) Exemption for security futures product exchange 
        members.--
                    ``(A) Registration exemption.--A natural person 
                shall be exempt from the registration requirements of 
                this section if such person--
                          ``(i) is a member of a designated contract 
                      market registered with the Commission as an 
                      exchange pursuant to section 6(g);
                          ``(ii) effects transactions only in securities 
                      on the exchange of which such person is a member; 
                      and
                          ``(iii) does not directly accept or solicit 
                      orders from public customers or provide advice to 
                      public customers in connection with the trading of 
                      security futures products.
                    ``(B) Other exemptions.--A natural person exempt 
                from registration pursuant to subparagraph (A) shall 
                also be exempt from the following provisions of this 
                title and the rules thereunder:
                          ``(i) Section 8.
                          ``(ii) Section 11.
                          ``(iii) Subsections (c)(3), (c)(5), and (e) of 
                      this section.
                          ``(iv) Section 15B.
                          ``(v) Section 15C.
                          ``(vi) Subsections (d), (e), (f ), (g), (h), 
                      and (i) of section 17.''.

    (c) Limited Purpose National Securities Association.--Section 15A of 
the Securities Exchange Act of 1934 (15 U.S.C. 78o-3) is amended by 
adding at the end the following:
    ``(k) Limited Purpose National Securities Association.--
            ``(1) Regulation of members with respect to security futures 
        products.--A futures association registered under section 17 of 
        the Commodity Exchange Act shall be a registered

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

        national securities association for the limited purpose of 
        regulating the activities of members who are registered as 
        brokers or dealers in security futures products pursuant to 
        section 15(b)(11).
            ``(2) Requirements for registration.--Such a securities 
        association shall--
                    ``(A) be so organized and have the capacity to carry 
                out the purposes of the securities laws applicable to 
                security futures products and to comply, and (subject to 
                any rule or order of the Commission pursuant to section 
                19(g)(2)) to enforce compliance by its members and 
                persons associated with its members, with the provisions 
                of the securities laws applicable to security futures 
                products, the rules and regulations thereunder, and its 
                rules;
                    ``(B) have rules that--
                          ``(i) are designed to prevent fraudulent and 
                      manipulative acts and practices, to promote just 
                      and equitable principles of trade, and, in 
                      general, to protect investors and the public 
                      interest, including rules governing sales 
                      practices and the advertising of security futures 
                      products reasonably comparable to those of other 
                      national securities associations registered 
                      pursuant to subsection (a) that are applicable to 
                      security futures products; and
                          ``(ii) are not designed to regulate by virtue 
                      of any authority conferred by this title matters 
                      not related to the purposes of this title or the 
                      administration of the association;
                    ``(C) have rules that provide that (subject to any 
                rule or order of the Commission pursuant to section 
                19(g)(2)) its members and persons associated with its 
                members shall be appropriately disciplined for violation 
                of any provision of the securities laws applicable to 
                security futures products, the rules or regulations 
                thereunder, or the rules of the association, by 
                expulsion, suspension, limitation of activities, 
                functions, and operations, fine, censure, being 
                suspended or barred from being associated with a member, 
                or any other fitting sanction; and
                    ``(D) have rules that ensure that members and 
                natural persons associated with members meet such 
                standards of training, experience, and competence 
                necessary to effect transactions in security futures 
                products and are tested for their knowledge of 
                securities and security futures products.
            ``(3) Exemption from rule change submission.--Such a 
        securities association shall be exempt from submitting proposed 
        rule changes pursuant to section 19(b) of this title, except 
        that--
                    ``(A) the association shall file proposed rule 
                changes related to higher margin levels, fraud or 
                manipulation, recordkeeping, reporting, listing 
                standards, or decimal pricing for security futures 
                products, sales practices for, advertising of, or 
                standards of training, experience, competence, or other 
                qualifications for security futures products for persons 
                who effect transactions in security futures products, or 
                rules effectuating the association's obligation to 
                enforce the securities laws pursuant to section 
                19(b)(7);

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

                    ``(B) the association shall file pursuant to 
                sections 19(b)(1) and 19(b)(2) proposed rule changes 
                related to margin, except for changes resulting in 
                higher margin levels; and
                    ``(C) the association shall file pursuant to section 
                19(b)(1) proposed rule changes that have been abrogated 
                by the Commission pursuant to section 19(b)(7)(C).
            ``(4) Other exemptions.--Such a securities association shall 
        be exempt from and shall not be required to enforce compliance 
        by its members, and its members shall not, solely with respect 
        to their transactions effected in security futures products, be 
        required to comply, with the following provisions of this title 
        and the rules thereunder:
                    ``(A) Section 8.
                    ``(B) Subsections (b)(1), (b)(3), (b)(4), (b)(5), 
                (b)(8), (b)(10), (b)(11), (b)(12), (b)(13), (c), (d), 
                (e), (f ), (g), (h), and (i) of this section.
                    ``(C) Subsections (d), (f ), and (k) of section 17.
                    ``(D) Subsections (a), (f ), and (h) of section 
                19.''.

    (d) Exemption Under the Securities Investor Protection Act of 
1970.--
            (1) Section 16(14) of the Securities Investor Protection Act 
        of 1970 (15 U.S.C. 78lll(14)) is amended by inserting ``or any 
        security future as that term is defined in section 3(a)(55)(A) 
        of the Securities Exchange Act of 1934,'' after ``certificate of 
        deposit for a security,''.
            (2) Section 3(a)(2)(A) of the Securities Investor Protection 
        Act of 1970 (15 U.S.C. 78ccc(a)(2)(A)) is amended--
                    (A) in clause (i), by striking ``and'' after the 
                semicolon;
                    (B) in clause (ii), by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following:
                          ``(iii) persons who are registered as a broker 
                      or dealer pursuant to section 15(b)(11)(A) of the 
                      Securities Exchange Act of 1934.''.

SEC. 204. SPECIAL PROVISIONS FOR INTERAGENCY COOPERATION.

    Section 17(b) of the Securities Exchange Act of 1934 (15 U.S.C. 
78q(b)) is amended--
            (1) by striking ``(b) All'' and inserting the following:

    ``(b) Records Subject to Examination.--
            ``(1) Procedures for cooperation with other agencies.--
        All'';
            (2) by striking ``prior to conducting any such examination 
        of a registered clearing'' and inserting the following: ``prior 
        to conducting any such examination of a--
                    ``(A) registered clearing'';
            (3) by redesignating the last sentence as paragraph (4)(C);
            (4) by striking the period at the end of the first sentence 
        and inserting the following: ``; or
                    ``(B) broker or dealer registered pursuant to 
                section 15(b)(11), exchange registered pursuant to 
                section 6(g), or national securities association 
                registered pursuant to section 15A(k) gives notice to 
                the Commodity Futures Trading Commission of such 
                proposed examination and consults with the Commodity 
                Futures Trading Commission concerning the feasibility 
                and desirability of coordinating such

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

                examination with examinations conducted by the Commodity 
                Futures Trading Commission in order to avoid unnecessary 
                regulatory duplication or undue regulatory burdens for 
                such broker or dealer or exchange.'';
            (5) by adding at the end the following new paragraphs:
            ``(2) Furnishing data and reports to cftc.--The Commission 
        shall notify the Commodity Futures Trading Commission of any 
        examination conducted of any broker or dealer registered 
        pursuant to section 15(b)(11), exchange registered pursuant to 
        section 6(g), or national securities association registered 
        pursuant to section 15A(k) and, upon request, furnish to the 
        Commodity Futures Trading Commission any examination report and 
        data supplied to, or prepared by, the Commission in connection 
        with such examination.
            ``(3) Use of cftc reports.--Prior to conducting an 
        examination under paragraph (1), the Commission shall use the 
        reports of examinations, if the information available therein is 
        sufficient for the purposes of the examination, of--
                    ``(A) any broker or dealer registered pursuant to 
                section 15(b)(11);
                    ``(B) exchange registered pursuant to section 6(g); 
                or
                    ``(C) national securities association registered 
                pursuant to section 15A(k);
        that is made by the Commodity Futures Trading Commission, a 
        national securities association registered pursuant to section 
        15A(k), or an exchange registered pursuant to section 6(g).
            ``(4) Rules of construction.--
                    ``(A) Notwithstanding any other provision of this 
                subsection, the records of a broker or dealer registered 
                pursuant to section 15(b)(11), an exchange registered 
                pursuant to section 6(g), or a national securities 
                association registered pursuant to section 15A(k) 
                described in this subparagraph shall not be subject to 
                routine periodic examinations by the Commission.
                    ``(B) Any recordkeeping rules adopted under this 
                subsection for a broker or dealer registered pursuant to 
                section 15(b)(11), an exchange registered pursuant to 
                section 6(g), or a national securities association 
                registered pursuant to section 15A(k) shall be limited 
                to records with respect to persons, accounts, 
                agreements, contracts, and transactions involving 
                security futures products.''; and
            (6) in paragraph (4)(C) (as redesignated by paragraph (3) of 
        this section), by striking ``Nothing in the proviso to the 
        preceding sentence'' and inserting ``Nothing in the proviso in 
        paragraph (1)''.

SEC. 205. MAINTENANCE OF MARKET INTEGRITY FOR SECURITY FUTURES PRODUCTS.

    (a) Addition of Security Futures Products to Option-Specific 
Enforcement Provisions.--
            (1) Prohibition against manipulation.--Section 9(b) of the 
        Securities Exchange Act of 1934 (15 U.S.C. 78i(b)) is amended--
                    (A) in paragraph (1)--
                          (i) by inserting ``(A)'' after ``acquires''; 
                      and
                          (ii) by striking ``; or'' and inserting ``; or 
                      (B) any security futures product on the security; 
                      or'';

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

                    (B) in paragraph (2)--
                          (i) by inserting ``(A)'' after ``interest in 
                      any''; and
                          (ii) by striking ``; or'' and inserting ``; or 
                      (B) such security futures product; or''; and
                    (C) in paragraph (3)--
                          (i) by inserting ``(A)'' after ``interest in 
                      any''; and
                          (ii) by inserting ``; or (B) such security 
                      futures product'' after ``privilege''.
            (2) Manipulation in options and other derivative products.--
        Section 9(g) of the Securities Exchange Act of 1934 (15 U.S.C. 
        78i(g)) is amended--
                    (A) by inserting ``(1)'' after ``(g)'';
                    (B) by inserting ``other than a security futures 
                product'' after ``future delivery''; and
                    (C) by adding at the end the following:

    ``(2) Notwithstanding the Commodity Exchange Act, the Commission 
shall have the authority to regulate the trading of any security futures 
product to the extent provided in the securities laws.''.
            (3) Liability of controlling persons and persons who aid and 
        abet violations.--Section 20(d) of the Securities Exchange Act 
        of 1934 (15 U.S.C. 78t(d)) is amended by striking ``or 
        privilege'' and inserting ``, privilege, or security futures 
        product''.
            (4) Liability to contemporaneous traders for insider 
        trading.--Section 21A(a)(1) of the Securities Exchange Act of 
        1934 (15 U.S.C. 78u-1(a)(1)) is amended by striking 
        ``standardized options, the Commission--'' and inserting 
        ``standardized options or security futures products, the 
        Commission--''.
            (5) Enforcement consultation.--Section 21 of the Securities 
        Exchange Act of 1934 (15 U.S.C. 78u) is amended by adding at the 
        end the following:

    ``(i) Information to CFTC.--The Commission shall provide the 
Commodity Futures Trading Commission with notice of the commencement of 
any proceeding and a copy of any order entered by the Commission against 
any broker or dealer registered pursuant to section 15(b)(11), any 
exchange registered pursuant to section 6(g), or any national securities 
association registered pursuant to section 15A(k).''.

SEC. 206. SPECIAL PROVISIONS FOR THE TRADING OF SECURITY FUTURES 
            PRODUCTS.

    (a) Listing Standards and Conditions for Trading.--Section 6 of the 
Securities Exchange Act of 1934 (15 U.S.C. 78f ) is amended by inserting 
after subsection (g), as added by section 202, the following:
    ``(h) Trading in Security Futures Products.--
            ``(1) Trading on exchange or association required.--It shall 
        be unlawful for any person to effect transactions in security 
        futures products that are not listed on a national securities 
        exchange or a national securities association registered 
        pursuant to section 15A(a).
            ``(2) Listing standards required.--Except as otherwise 
        provided in paragraph (7), a national securities exchange or a 
        national securities association registered pursuant to section

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

        15A(a) may trade only security futures products that (A) conform 
        with listing standards that such exchange or association files 
        with the Commission under section 19(b) and (B) meet the 
        criteria specified in section 2(a)(1)(D)(i) of the Commodity 
        Exchange Act.
            ``(3) Requirements for listing standards and conditions for 
        trading.--Such listing standards shall--
                    ``(A) except as otherwise provided in a rule, 
                regulation, or order issued pursuant to paragraph (4), 
                require that any security underlying the security 
                future, including each component security of a narrow-
                based security index, be registered pursuant to section 
                12 of this title;
                    ``(B) require that if the security futures product 
                is not cash settled, the market on which the security 
                futures product is traded have arrangements in place 
                with a registered clearing agency for the payment and 
                delivery of the securities underlying the security 
                futures product;
                    ``(C) be no less restrictive than comparable listing 
                standards for options traded on a national securities 
                exchange or national securities association registered 
                pursuant to section 15A(a) of this title;
                    ``(D) except as otherwise provided in a rule, 
                regulation, or order issued pursuant to paragraph (4), 
                require that the security future be based upon common 
                stock and such other equity securities as the Commission 
                and the Commodity Futures Trading Commission jointly 
                determine appropriate;
                    ``(E) require that the security futures product is 
                cleared by a clearing agency that has in place 
                provisions for linked and coordinated clearing with 
                other clearing agencies that clear security futures 
                products, which permits the security futures product to 
                be purchased on one market and offset on another market 
                that trades such product;
                    ``(F) require that only a broker or dealer subject 
                to suitability rules comparable to those of a national 
                securities association registered pursuant to section 
                15A(a) effect transactions in the security futures 
                product;
                    ``(G) require that the security futures product be 
                subject to the prohibition against dual trading in 
                section 4j of the Commodity Exchange Act (7 U.S.C. 6j) 
                and the rules and regulations thereunder or the 
                provisions of section 11(a) of this title and the rules 
                and regulations thereunder, except to the extent 
                otherwise permitted under this title and the rules and 
                regulations thereunder;
                    ``(H) require that trading in the security futures 
                product not be readily susceptible to manipulation of 
                the price of such security futures product, nor to 
                causing or being used in the manipulation of the price 
                of any underlying security, option on such security, or 
                option on a group or index including such securities;
                    ``(I) require that procedures be in place for 
                coordinated surveillance among the market on which the 
                security futures product is traded, any market on which 
                any security underlying the security futures product is 
                traded, and other markets on which any related security 
                is traded to detect manipulation and insider trading;

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

                    ``(J) require that the market on which the security 
                futures product is traded has in place audit trails 
                necessary or appropriate to facilitate the coordinated 
                surveillance required in subparagraph (I);
                    ``(K) require that the market on which the security 
                futures product is traded has in place procedures to 
                coordinate trading halts between such market and any 
                market on which any security underlying the security 
                futures product is traded and other markets on which any 
                related security is traded; and
                    ``(L) require that the margin requirements for a 
                security futures product comply with the regulations 
                prescribed pursuant to section 7(c)(2)(B), except that 
                nothing in this subparagraph shall be construed to 
                prevent a national securities exchange or national 
                securities association from requiring higher margin 
                levels for a security futures product when it deems such 
                action to be necessary or appropriate.
            ``(4) Authority to modify certain listing standard 
        requirements.--
                    ``(A) Authority to modify.--The Commission and the 
                Commodity Futures Trading Commission, by rule, 
                regulation, or order, may jointly modify the listing 
                standard requirements specified in subparagraph (A) or 
                (D) of paragraph (3) to the extent such modification 
                fosters the development of fair and orderly markets in 
                security futures products, is necessary or appropriate 
                in the public interest, and is consistent with the 
                protection of investors.
                    ``(B) Authority to grant exemptions.--The Commission 
                and the Commodity Futures Trading Commission, by order, 
                may jointly exempt any person from compliance with the 
                listing standard requirement specified in subparagraph 
                (E) of paragraph (3) to the extent such exemption 
                fosters the development of fair and orderly markets in 
                security futures products, is necessary or appropriate 
                in the public interest, and is consistent with the 
                protection of investors.
            ``(5) Requirements for other persons trading security future 
        products.--It shall be unlawful for any person (other than a 
        national securities exchange or a national securities 
        association registered pursuant to section 15A(a)) to 
        constitute, maintain, or provide a marketplace or facilities for 
        bringing together purchasers and sellers of security future 
        products or to otherwise perform with respect to security future 
        products the functions commonly performed by a stock exchange as 
        that term is generally understood, unless a national securities 
        association registered pursuant to section 15A(a) or a national 
        securities exchange of which such person is a member--
                    ``(A) has in place procedures for coordinated 
                surveillance among such person, the market trading the 
                securities underlying the security future products, and 
                other markets trading related securities to detect 
                manipulation and insider trading;
                    ``(B) has rules to require audit trails necessary or 
                appropriate to facilitate the coordinated surveillance 
                required in subparagraph (A); and

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

                    ``(C) has rules to require such person to coordinate 
                trading halts with markets trading the securities 
                underlying the security future products and other 
                markets trading related securities.
            ``(6) Deferral of options on security futures trading.--No 
        person shall offer to enter into, enter into, or confirm the 
        execution of any put, call, straddle, option, or privilege on a 
        security future, except that, after 3 years after the date of 
        the enactment of this subsection, the Commission and the 
        Commodity Futures Trading Commission may by order jointly 
        determine to permit trading of puts, calls, straddles, options, 
        or privileges on any security future authorized to be traded 
        under the provisions of this Act and the Commodity Exchange Act.
            ``(7) Deferral of linked and coordinated clearing.--
                    ``(A) Notwithstanding paragraph (2), until the 
                compliance date, a national securities exchange or 
                national securities association registered pursuant to 
                section 15A(a) may trade a security futures product that 
                does not--
                          ``(i) conform with any listing standard 
                      promulgated to meet the requirement specified in 
                      subparagraph (E) of paragraph (3); or
                          ``(ii) meet the criterion specified in section 
                      2(a)(1)(D)(i)(IV) of the Commodity Exchange Act.
                    ``(B) The Commission and the Commodity Futures 
                Trading Commission shall jointly publish in the Federal 
                Register a notice of the compliance date no later than 
                165 days before the compliance date.
                    ``(C) For purposes of this paragraph, the term 
                `compliance date' means the later of--
                          ``(i) 180 days after the end of the first full 
                      calendar month period in which the average 
                      aggregate comparable share volume for all security 
                      futures products based on single equity securities 
                      traded on all national securities exchanges, any 
                      national securities associations registered 
                      pursuant to section 15A(a), and all other persons 
                      equals or exceeds 10 percent of the average 
                      aggregate comparable share volume of options on 
                      single equity securities traded on all national 
                      securities exchanges and any national securities 
                      associations registered pursuant to section 
                      15A(a); or
                          ``(ii) 2 years after the date on which trading 
                      in any security futures product commences under 
                      this title.''.

    (b) Margin.--Section 7 of the Securities Exchange Act of 1934 (15 
U.S.C. 78g) is amended--
            (1) in subsection (a), by inserting ``or a security futures 
        product'' after ``exempted security'';
            (2) in subsection (c)(1)(A), by inserting ``except as 
        provided in paragraph (2),'' after ``security),'';
            (3) by redesignating paragraph (2) of subsection (c) as 
        paragraph (3) of such subsection; and
            (4) by inserting after paragraph (1) of such subsection the 
        following:
            ``(2) Margin regulations.--
                    ``(A) Compliance with margin rules required.--It 
                shall be unlawful for any broker, dealer, or member of

[[Page 114 STAT. 2763A-430]]

                a national securities exchange to, directly or 
                indirectly, extend or maintain credit to or for, or 
                collect margin from any customer on, any security 
                futures product unless such activities comply with the 
                regulations--
                          ``(i) which the Board shall prescribe pursuant 
                      to subparagraph (B); or
                          ``(ii) if the Board determines to delegate the 
                      authority to prescribe such regulations, which the 
                      Commission and the Commodity Futures Trading 
                      Commission shall jointly prescribe pursuant to 
                      subparagraph (B).
                If the Board delegates the authority to prescribe such 
                regulations under clause (ii) and the Commission and the 
                Commodity Futures Trading Commission have not jointly 
                prescribed such regulations within a reasonable period 
                of time after the date of such delegation, the Board 
                shall prescribe such regulations pursuant to 
                subparagraph (B).
                    ``(B) Criteria for issuance of rules.--The Board 
                shall prescribe, or, if the authority is delegated 
                pursuant to subparagraph (A)(ii), the Commission and the 
                Commodity Futures Trading Commission shall jointly 
                prescribe, such regulations to establish margin 
                requirements, including the establishment of levels of 
                margin (initial and maintenance) for security futures 
                products under such terms, and at such levels, as the 
                Board deems appropriate, or as the Commission and the 
                Commodity Futures Trading Commission jointly deem 
                appropriate--
                          ``(i) to preserve the financial integrity of 
                      markets trading security futures products;
                          ``(ii) to prevent systemic risk;
                          ``(iii) to require that--
                                    ``(I) the margin requirements for a 
                                security future product be consistent 
                                with the margin requirements for 
                                comparable option contracts traded on 
                                any exchange registered pursuant to 
                                section 6(a) of this title; and
                                    ``(II) initial and maintenance 
                                margin levels for a security future 
                                product not be lower than the lowest 
                                level of margin, exclusive of premium, 
                                required for any comparable option 
                                contract traded on any exchange 
                                registered pursuant to section 6(a) of 
                                this title, other than an option on a 
                                security future;
                      except that nothing in this subparagraph shall be 
                      construed to prevent a national securities 
                      exchange or national securities association from 
                      requiring higher margin levels for a security 
                      future product when it deems such action to be 
                      necessary or appropriate; and
                          ``(iv) to ensure that the margin requirements 
                      (other than levels of margin), including the type, 
                      form, and use of collateral for security futures 
                      products, are and remain consistent with the 
                      requirements established by the Board, pursuant to 
                      subparagraphs (A) and (B) of paragraph (1).''.

    (c) Incorporation of Security Futures Products Into the National 
Market System.--Section 11A of the Securities Exchange Act of 1934 (15 
U.S.C. 78k-1) is amended by adding at the end the following:

[[Page 114 STAT. 2763A-431]]

    ``(e) National Markets System for Security Futures Products.--
            ``(1) Consultation and cooperation required.--With respect 
        to security futures products, the Commission and the Commodity 
        Futures Trading Commission shall consult and cooperate so that, 
        to the maximum extent practicable, their respective regulatory 
        responsibilities may be fulfilled and the rules and regulations 
        applicable to security futures products may foster a national 
        market system for security futures products if the Commission 
        and the Commodity Futures Trading Commission jointly determine 
        that such a system would be consistent with the congressional 
        findings in subsection (a)(1). In accordance with this 
        objective, the Commission shall, at least 15 days prior to the 
        issuance for public comment of any proposed rule or regulation 
        under this section concerning security futures products, consult 
        and request the views of the Commodity Futures Trading 
        Commission.
            ``(2) Application of rules by order of cftc.--No rule 
        adopted pursuant to this section shall be applied to any person 
        with respect to the trading of security futures products on an 
        exchange that is registered under section 6(g) unless the 
        Commodity Futures Trading Commission has issued an order 
        directing that such rule is applicable to such persons.''.

    (d) Incorporation of Security Futures Products Into the National 
System for Clearance and Settlement.--Section 17A(b) of the Securities 
Exchange Act of 1934 (15 U.S.C. 78q-1(b)) is amended by adding at the 
end the following:
    ``(7)(A) A clearing agency that is regulated directly or indirectly 
by the Commodity Futures Trading Commission through its association with 
a designated contract market for security futures products that is a 
national securities exchange registered pursuant to section 6(g), and 
that would be required to register pursuant to paragraph (1) of this 
subsection only because it performs the functions of a clearing agency 
with respect to security futures products effected pursuant to the rules 
of the designated contract market with which such agency is associated, 
is exempted from the provisions of this section and the rules and 
regulations thereunder, except that if such a clearing agency performs 
the functions of a clearing agency with respect to a security futures 
product that is not cash settled, it must have arrangements in place 
with a registered clearing agency to effect the payment and delivery of 
the securities underlying the security futures product.
    ``(B) Any clearing agency that performs the functions of a clearing 
agency with respect to security futures products must coordinate with 
and develop fair and reasonable links with any and all other clearing 
agencies that perform the functions of a clearing agency with respect to 
security futures products, in order to permit, as of the compliance date 
(as defined in section 6(h)(6)(C)), security futures products to be 
purchased on one market and offset on another market that trades such 
products.''.
    (e) Market Emergency Powers and Circuit Breakers.--Section 12(k) of 
the Securities Exchange Act of 1934 (15 U.S.C. 78l(k)) is amended--
            (1) in paragraph (1), by adding at the end the following: 
        ``If the actions described in subparagraph (A) or (B) involve a 
        security futures product, the Commission shall consult with

[[Page 114 STAT. 2763A-432]]

        and consider the views of the Commodity Futures Trading 
        Commission.''; and
            (2) in paragraph (2)(B), by inserting after the first 
        sentence the following: ``If the actions described in 
        subparagraph (A) involve a security futures product, the 
        Commission shall consult with and consider the views of the 
        Commodity Futures Trading Commission.''.

    (f ) Transaction Fees.--Section 31 of the Securities Exchange Act of 
1934 (15 U.S.C. 78ee) is amended--
            (1) in subsection (a), by inserting ``and assessments'' 
        after ``fees'';
            (2) in subsections (b), (c), and (d)(1), by striking ``and 
        other evidences of indebtedness'' and inserting ``other 
        evidences of indebtedness, and security futures products'';
            (3) in subsection (f ), by inserting ``or assessment'' after 
        ``fee'';
            (4) in subsection (g), by inserting ``and assessment'' after 
        ``fee'';
            (5) by redesignating subsections (e), (f ), and (g) as 
        subsections (f ), (g), and (h), respectively; and
            (6) by inserting after subsection (d) the following new 
        subsection:

    ``(e) Assessments on Security Futures Transactions.--Each national 
securities exchange and national securities association shall pay to the 
Commission an assessment equal to $0.02 for each round turn transaction 
(treated as including one purchase and one sale of a contract of sale 
for future delivery) on a security future traded on such national 
securities exchange or by or through any member of such association 
otherwise than on a national securities exchange, except that for fiscal 
year 2007 or any succeeding fiscal year such assessment shall be equal 
to $0.0075 for each such transaction. Assessments collected pursuant to 
this subsection shall be deposited and collected as general revenue of 
the Treasury.''.
    (g) Exemption From Short Sale Provisions.--Section 10(a) of the 
Securities Exchange Act of 1934 (15 U.S.C 78j(a)) is amended--
            (1) by inserting ``(1)'' after ``(a)''; and
            (2) by adding at the end the following:

    ``(2) Paragraph (1) of this subsection shall not apply to security 
futures products.''.
    (h) Rulemaking Authority To Address Duplicative Regulation of Dual 
Registrants.--Section 15(c)(3) of the Securities Exchange Act of 1934 
(15 U.S.C. 78o(c)(3)) is amended--
            (1) by inserting ``(A)'' after ``(3)''; and
            (2) by adding at the end the following:

    ``(B) Consistent with this title, the Commission, in consultation 
with the Commodity Futures Trading Commission, shall issue such rules, 
regulations, or orders as are necessary to avoid duplicative or 
conflicting regulations applicable to any broker or dealer registered 
with the Commission pursuant to section 15(b) (except paragraph (11) 
thereof ), that is also registered with the Commodity Futures Trading 
Commission pursuant to section 4f(a) of the Commodity Exchange Act 
(except paragraph (2) thereof ), with respect to the application of: (i) 
the provisions of section 8, section 15(c)(3), and section 17 of this 
title and the rules and regulations thereunder related to the treatment 
of customer funds, securities,

[[Page 114 STAT. 2763A-433]]

or property, maintenance of books and records, financial reporting, or 
other financial responsibility rules, involving security futures 
products; and (ii) similar provisions of the Commodity Exchange Act and 
rules and regulations thereunder involving security futures products.''.
    (i) Obligation To Address Duplicative Regulation of Dual 
Registrants.--Section 6 of the Securities Exchange Act of 1934 (15 
U.S.C. 78f ) is amended by inserting after subsection (h), as added by 
subsection (a) of this section, the following:
    ``(i) Consistent with this title, each national securities exchange 
registered pursuant to subsection (a) of this section shall issue such 
rules as are necessary to avoid duplicative or conflicting rules 
applicable to any broker or dealer registered with the Commission 
pursuant to section 15(b) (except paragraph (11) thereof ), that is also 
registered with the Commodity Futures Trading Commission pursuant to 
section 4f(a) of the Commodity Exchange Act (except paragraph (2) 
thereof ), with respect to the application of--
            (1) rules of such national securities exchange of the type 
        specified in section 15(c)(3)(B) involving security futures 
        products; and
            (2) similar rules of national securities exchanges 
        registered pursuant to section 6(g) and national securities 
        associations registered pursuant to section 15A(k) involving 
        security futures products.''.

    ( j) Obligation To Address Duplicative Regulation of Dual 
Registrants.--Section 15A of the Securities Exchange Act of 1934 (15 
U.S.C. 78o-3) is amended by inserting after subsection (k), as added by 
section 203, the following:
    ``(l) Consistent with this title, each national securities 
association registered pursuant to subsection (a) of this section shall 
issue such rules as are necessary to avoid duplicative or conflicting 
rules applicable to any broker or dealer registered with the Commission 
pursuant to section 15(b) (except paragraph (11) thereof ), that is also 
registered with the Commodity Futures Trading Commission pursuant to 
section 4f(a) of the Commodity Exchange Act (except paragraph (2) 
thereof ), with respect to the application of--
            ``(1) rules of such national securities association of the 
        type specified in section 15(c)(3)(B) involving security futures 
        products; and
            ``(2) similar rules of national securities associations 
        registered pursuant to subsection (k) of this section and 
        national securities exchanges registered pursuant to section 
        6(g) involving security futures products.''.

    (k) Obligation To Put in Place Procedures and Adopt Rules.--
            (1) National securities associations.--Section 15A of the 
        Securities Exchange Act of 1934 (15 U.S.C. 78o-3) is amended by 
        inserting after subsection (l), as added by subsection ( j) of 
        this section, the following new subsection:

    ``(m) Procedures and Rules for Security Future Products.--A national 
securities association registered pursuant to subsection (a) shall, not 
later than 8 months after the date of the enactment of the Commodity 
Futures Modernization Act of 2000, implement the procedures specified in 
section 6(h)(5)(A) of this title and adopt the rules specified in 
subparagraphs (B) and (C) of section 6(h)(5) of this title.''.

[[Page 114 STAT. 2763A-434]]

            (2) National securities exchanges.--Section 6 of the 
        Securities Exchange Act of 1934 (15 U.S.C. 78f ) is amended by 
        inserting after subsection (i), as added by subsection (i) of 
        this section, the following new subsection:

    ``( j) Procedures and Rules for Security Future Products.--A 
national securities exchange registered pursuant to subsection (a) shall 
implement the procedures specified in section 6(h)(5)(A) of this title 
and adopt the rules specified in subparagraphs (B) and (C) of section 
6(h)(5) of this title not later than 8 months after the date of receipt 
of a request from an alternative trading system for such implementation 
and rules.''.
    (l) Obligation To Address Security Futures Products Traded on 
Foreign Exchanges.--Section 6 of the Securities Exchange Act of 1934 (15 
U.S.C. 78f ) is amended by adding after subsection ( j), as added by 
subsection (k) of this section, the following:
    ``(k)(1) To the extent necessary or appropriate in the public 
interest, to promote fair competition, and consistent with the promotion 
of market efficiency, innovation, and expansion of investment 
opportunities, the protection of investors, and the maintenance of fair 
and orderly markets, the Commission and the Commodity Futures Trading 
Commission shall jointly issue such rules, regulations, or orders as are 
necessary and appropriate to permit the offer and sale of a security 
futures product traded on or subject to the rules of a foreign board of 
trade to United States persons.
    ``(2) The rules, regulations, or orders adopted under paragraph (1) 
shall take into account, as appropriate, the nature and size of the 
markets that the securities underlying the security futures product 
reflect.''.

SEC. 207. CLEARANCE AND SETTLEMENT.

    Section 17A(b) of the Securities Exchange Act of 1934 (15 U.S.C. 
78q-1(b)) is amended--
            (1) in paragraph (3)(A), by inserting ``and derivative 
        agreements, contracts, and transactions'' after ``prompt and 
        accurate clearance and settlement of securities transactions'';
            (2) in paragraph (3)(F), by inserting ``and, to the extent 
        applicable, derivative agreements, contracts, and transactions'' 
        after ``designed to promote the prompt and accurate clearance 
        and settlement of securities transactions''; and
            (3) by inserting after paragraph (7), as added by section 
        206(d), the following:

    ``(8) A registered clearing agency shall be permitted to provide 
facilities for the clearance and settlement of any derivative 
agreements, contracts, or transactions that are excluded from the 
Commodity Exchange Act, subject to the requirements of this section and 
to such rules and regulations as the Commission may prescribe as 
necessary or appropriate in the public interest, for the protection of 
investors, or otherwise in furtherance of the purposes of this title.''.

SEC. 208. AMENDMENTS RELATING TO REGISTRATION AND DISCLOSURE ISSUES 
            UNDER THE SECURITIES ACT OF 1933 AND THE SECURITIES EXCHANGE 
            ACT OF 1934.

    (a) Amendments to the Securities Act of 1933.--
            (1) Treatment of security futures products.--Section 2(a) of 
        the Securities Act of 1933 (15 U.S.C. 77b(a)) is amended--

[[Page 114 STAT. 2763A-435]]

                    (A) in paragraph (1), by inserting ``security 
                future,'' after ``treasury stock,'';
                    (B) in paragraph (3), by adding at the end the 
                following: ``Any offer or sale of a security futures 
                product by or on behalf of the issuer of the securities 
                underlying the security futures product, an affiliate of 
                the issuer, or an underwriter, shall constitute a 
                contract for sale of, sale of, offer for sale, or offer 
                to sell the underlying securities.''; and
                    (C) by adding at the end the following:
            ``(16) The terms `security future', `narrow-based security 
        index', and `security futures product' have the same meanings as 
        provided in section 3(a)(55) of the Securities Exchange Act of 
        1934.''.
            (2) Exemption from registration.--Section 3(a) of the 
        Securities Act of 1933 (15 U.S.C. 77c(a)) is amended by adding 
        at the end the following:
            ``(14) Any security futures product that is--
                    ``(A) cleared by a clearing agency registered under 
                section 17A of the Securities Exchange Act of 1934 or 
                exempt from registration under subsection (b)(7) of such 
                section 17A; and
                    ``(B) traded on a national securities exchange or a 
                national securities association registered pursuant to 
                section 15A(a) of the Securities Exchange Act of 
                1934.''.
            (3) Conforming amendment.--Section 12(a)(2) of the 
        Securities Act of 1933 (15 U.S.C. 77l(a)(2)) is amended by 
        striking ``paragraph (2)'' and inserting ``paragraphs (2) and 
        (14)''.

    (b) Amendments to the Securities Exchange Act of 1934.--
            (1) Exemption from registration.--Section 12(a) of the 
        Securities Exchange Act of 1934 (15 U.S.C. 78l(a)) is amended by 
        adding at the end the following: ``The provisions of this 
        subsection shall not apply in respect of a security futures 
        product traded on a national securities exchange.''.
            (2) Exemptions from reporting requirement.--Section 12(g)(5) 
        of the Securities Exchange Act of 1934 (15 U.S.C. 78l(g)(5)) is 
        amended by adding at the end the following: ``For purposes of 
        this subsection, a security futures product shall not be 
        considered a class of equity security of the issuer of the 
        securities underlying the security futures product.''.
            (3) Transactions by corporate insiders.--Section 16 of the 
        Securities Exchange Act of 1934 (15 U.S.C. 78p) is amended by 
        adding at the end the following:

    ``(f ) Treatment of Transactions in Security Futures Products.--The 
provisions of this section shall apply to ownership of and transactions 
in security futures products.''.

SEC. 209. AMENDMENTS TO THE INVESTMENT COMPANY ACT OF 1940 AND THE 
            INVESTMENT ADVISERS ACT OF 1940.

    (a) Definitions Under the Investment Company Act of 1940 and the 
Investment Advisers Act of 1940.--
            (1) Section 2(a)(36) of the Investment Company Act of 1940 
        (15 U.S.C. 80a-2(a)(36)) is amended by inserting ``security 
        future,'' after ``treasury stock,''.
            (2) Section 202(a)(18) of the Investment Advisers Act of 
        1940 (15 U.S.C. 80b-2(a)(18)) is amended by inserting ``security 
        future,'' after ``treasury stock,''.

[[Page 114 STAT. 2763A-436]]

            (3) Section 2(a) of the Investment Company Act of 1940 (15 
        U.S.C. 80a-2(a)) is amended by adding at the end the following:
            ``(52) The terms `security future' and `narrow-based 
        security index' have the same meanings as provided in section 
        3(a)(55) of the Securities Exchange Act of 1934.''.
            (4) Section 202(a) of the Investment Advisers Act of 1940 
        (15 U.S.C. 80b-2(a)) is amended by adding at the end the 
        following:
            ``(27) The terms `security future' and `narrow-based 
        security index' have the same meanings as provided in section 
        3(a)(55) of the Securities Exchange Act of 1934.''.

    (b) Other Provision.--Section 203(b) of the Investment Advisers Act 
of 1940 (15 U.S.C. 80b-3(b)) is amended--
            (1) by striking ``or'' at the end of paragraph (4);
            (2) by striking the period at the end of paragraph (5) and 
        inserting ``; or''; and
            (3) by adding at the end the following:
            ``(6) any investment adviser that is registered with the 
        Commodity Futures Trading Commission as a commodity trading 
        advisor whose business does not consist primarily of acting as 
        an investment adviser, as defined in section 202(a)(11) of this 
        title, and that does not act as an investment adviser to--
                    ``(A) an investment company registered under title I 
                of this Act; or
                    ``(B) a company which has elected to be a business 
                development company pursuant to section 54 of title I of 
                this Act and has not withdrawn its election.''.

SEC. 210. PREEMPTION OF STATE LAWS.

    Section 28(a) of the Securities Exchange Act of 1934 (15 U.S.C. 
78bb(a)) is amended--
            (1) in the last sentence--
                    (A) by inserting ``subject to this title'' after 
                ``privilege, or other security''; and
                    (B) by striking ``any such instrument, if such 
                instrument is traded pursuant to rules and regulations 
                of a self-regulatory organization that are filed with 
                the Commission pursuant to section 19(b) of this Act'' 
                and inserting ``any such security''; and
            (2) by adding at the end the following new sentence: ``No 
        provision of State law regarding the offer, sale, or 
        distribution of securities shall apply to any transaction in a 
        security futures product, except that this sentence shall not be 
        construed as limiting any State antifraud law of general 
        applicability.''.

          Subtitle B--Amendments to the Commodity Exchange Act

SEC. 251. JURISDICTION OF SECURITIES AND EXCHANGE COMMISSION; OTHER 
            PROVISIONS.

    (a) Jurisdiction of Securities and Exchange Commission.--
            (1) Section 2(a)(1)(C) of the Commodity Exchange Act (7 
        U.S.C. 2a) (as redesignated by section 34(a)(2)(C)) is amended--
                    (A) in clause (ii)--

[[Page 114 STAT. 2763A-437]]

                          (i) by inserting ``or register a derivatives 
                      transaction execution facility that trades or 
                      executes,'' after ``contract market in,'';
                          (ii) by inserting after ``contracts) for 
                      future delivery'' the following: ``, and no 
                      derivatives transaction execution facility shall 
                      trade or execute such contracts of sale (or 
                      options on such contracts) for future delivery,'';
                          (iii) by striking ``making such application 
                      demonstrates and the Commission expressly finds 
                      that the specific contract (or option on such 
                      contract) with respect to which the application 
                      has been made meets'' and inserting ``or the 
                      derivatives transaction execution facility, and 
                      the applicable contract, meet''; and
                          (iv) by striking subclause (III) of clause 
                      (ii) and inserting the following:
                    ``(III) Such group or index of securities shall not 
                constitute a narrow-based security index.'';
                    (B) by striking clause (iii);
                    (C) by striking clause (iv) and inserting the 
                following:
            ``(iii) If, in its discretion, the Commission determines 
        that a stock index futures contract, notwithstanding its 
        conformance with the requirements in clause (ii) of this 
        subparagraph, can reasonably be used as a surrogate for trading 
        a security (including a security futures product), it may, by 
        order, require such contract and any option thereon be traded 
        and regulated as security futures products as defined in section 
        3(a)(56) of the Securities Exchange Act of 1934 and section 1a 
        of this Act subject to all rules and regulations applicable to 
        security futures products under this Act and the securities laws 
        as defined in section 3(a)(47) of the Securities Exchange Act of 
        1934.''; and
                    (D) by redesignating clause (v) as clause (iv).
            (2) Section 2(a)(1) of the Commodity Exchange Act (7 U.S.C. 
        2, 2a, 4) is amended by adding at the end the following:

    ``(D)(i) Notwithstanding any other provision of this Act, the 
Securities and Exchange Commission shall have jurisdiction and authority 
over security futures as defined in section 3(a)(55) of the Securities 
Exchange Act of 1934, section 2(a)(16) of the Securities Act of 1933, 
section 2(a)(52) of the Investment Company Act of 1940, and section 
202(a)(27) of the Investment Advisers Act of 1940, options on security 
futures, and persons effecting transactions in security futures and 
options thereon, and this Act shall apply to and the Commission shall 
have jurisdiction with respect to accounts, agreements (including any 
transaction which is of the character of, or is commonly known to the 
trade as, an `option', `privilege', `indemnity', `bid', `offer', `put', 
`call', `advance guaranty', or `decline guaranty'), contracts, and 
transactions involving, and may designate a board of trade as a contract 
market in, or register a derivatives transaction execution facility that 
trades or executes, a security futures product as defined in section 1a 
of this Act: Provided, however, That, except as provided in clause (vi) 
of this subparagraph, no board of trade shall be designated as a 
contract market with respect to, or registered as a derivatives 
transaction execution facility for, any such contracts of sale for 
future delivery unless the board of trade and the applicable contract 
meet the following criteria:

[[Page 114 STAT. 2763A-438]]

            ``(I) Except as otherwise provided in a rule, regulation, or 
        order issued pursuant to clause (v) of this subparagraph, any 
        security underlying the security future, including each 
        component security of a narrow-based security index, is 
        registered pursuant to section 12 of the Securities Exchange Act 
        of 1934.
            ``(II) If the security futures product is not cash settled, 
        the board of trade on which the security futures product is 
        traded has arrangements in place with a clearing agency 
        registered pursuant to section 17A of the Securities Exchange 
        Act of 1934 for the payment and delivery of the securities 
        underlying the security futures product.
            ``(III) Except as otherwise provided in a rule, regulation, 
        or order issued pursuant to clause (v) of this subparagraph, the 
        security future is based upon common stock and such other equity 
        securities as the Commission and the Securities and Exchange 
        Commission jointly determine appropriate.
            ``(IV) The security futures product is cleared by a clearing 
        agency that has in place provisions for linked and coordinated 
        clearing with other clearing agencies that clear security 
        futures products, which permits the security futures product to 
        be purchased on a designated contract market, registered 
        derivatives transaction execution facility, national securities 
        exchange registered under section 6(a) of the Securities 
        Exchange Act of 1934, or national securities association 
        registered pursuant to section 15A(a) of the Securities Exchange 
        Act of 1934 and offset on another designated contract market, 
        registered derivatives transaction execution facility, national 
        securities exchange registered under section 6(a) of the 
        Securities Exchange Act of 1934, or national securities 
        association registered pursuant to section 15A(a) of the 
        Securities Exchange Act of 1934.
            ``(V) Only futures commission merchants, introducing 
        brokers, commodity trading advisors, commodity pool operators or 
        associated persons subject to suitability rules comparable to 
        those of a national securities association registered pursuant 
        to section 15A(a) of the Securities Exchange Act of 1934 
        solicit, accept any order for, or otherwise deal in any 
        transaction in or in connection with the security futures 
        product.
            ``(VI) The security futures product is subject to a 
        prohibition against dual trading in section 4j of this Act and 
        the rules and regulations thereunder or the provisions of 
        section 11(a) of the Securities Exchange Act of 1934 and the 
        rules and regulations thereunder, except to the extent otherwise 
        permitted under the Securities Exchange Act of 1934 and the 
        rules and regulations thereunder.
            ``(VII) Trading in the security futures product is not 
        readily susceptible to manipulation of the price of such 
        security futures product, nor to causing or being used in the 
        manipulation of the price of any underlying security, option on 
        such security, or option on a group or index including such 
        securities;
            ``(VIII) The board of trade on which the security futures 
        product is traded has procedures in place for coordinated 
        surveillance among such board of trade, any market on which any 
        security underlying the security futures product is traded, and 
        other markets on which any related security is traded to detect 
        manipulation and insider trading, except that, if the board of 
        trade is an alternative trading system, a national

[[Page 114 STAT. 2763A-439]]

        securities association registered pursuant to section 15A(a) of 
        the Securities Exchange Act of 1934 or national securities 
        exchange registered pursuant to section 6(a) of the Securities 
        Exchange Act of 1934 of which such alternative trading system is 
        a member has in place such procedures.
            ``(IX) The board of trade on which the security futures 
        product is traded has in place audit trails necessary or 
        appropriate to facilitate the coordinated surveillance required 
        in subclause (VIII), except that, if the board of trade is an 
        alternative trading system, a national securities association 
        registered pursuant to section 15A(a) of the Securities Exchange 
        Act of 1934 or national securities exchange registered pursuant 
        to section 6(a) of the Securities Exchange Act of 1934 of which 
        such alternative trading system is a member has rules to require 
        such audit trails.
            ``(X) The board of trade on which the security futures 
        product is traded has in place procedures to coordinate trading 
        halts between such board of trade and markets on which any 
        security underlying the security futures product is traded and 
        other markets on which any related security is traded, except 
        that, if the board of trade is an alternative trading system, a 
        national securities association registered pursuant to section 
        15A(a) of the Securities Exchange Act of 1934 or national 
        securities exchange registered pursuant to section 6(a) of the 
        Securities Exchange Act of 1934 of which such alternative 
        trading system is a member has rules to require such coordinated 
        trading halts.
            ``(XI) The margin requirements for a security futures 
        product comply with the regulations prescribed pursuant to 
        section 7(c)(2)(B) of the Securities Exchange Act of 1934, 
        except that nothing in this subclause shall be construed to 
        prevent a board of trade from requiring higher margin levels for 
        a security futures product when it deems such action to be 
        necessary or appropriate.

    ``(ii) It shall be unlawful for any person to offer, to enter into, 
to execute, to confirm the execution of, or to conduct any office or 
business anywhere in the United States, its territories or possessions, 
for the purpose of soliciting, or accepting any order for, or otherwise 
dealing in, any transaction in, or in connection with, a security 
futures product unless--
            ``(I) the transaction is conducted on or subject to the 
        rules of a board of trade that--
                    ``(aa) has been designated by the Commission as a 
                contract market in such security futures product; or
                    ``(bb) is a registered derivatives transaction 
                execution facility for the security futures product that 
                has provided a certification with respect to the 
                security futures product pursuant to clause (vii);
            ``(II) the contract is executed or consummated by, through, 
        or with a member of the contract market or registered 
        derivatives transaction execution facility; and
            ``(III) the security futures product is evidenced by a 
        record in writing which shows the date, the parties to such 
        security futures product and their addresses, the property 
        covered, and its price, and each contract market member or 
        registered derivatives transaction execution facility member 
        shall keep

[[Page 114 STAT. 2763A-440]]

        the record for a period of 3 years from the date of the 
        transaction, or for a longer period if the Commission so 
        directs, which record shall at all times be open to the 
        inspection of any duly authorized representative of the 
        Commission.

    ``(iii)(I) Except as provided in subclause (II) but notwithstanding 
any other provision of this Act, no person shall offer to enter into, 
enter into, or confirm the execution of any option on a security future.
    ``(II) After 3 years after the date of the enactment of the 
Commodity Futures Modernization Act of 2000, the Commission and the 
Securities and Exchange Commission may by order jointly determine to 
permit trading of options on any security future authorized to be traded 
under the provisions of this Act and the Securities Exchange Act of 
1934.
    ``(iv)(I) All relevant records of a futures commission merchant or 
introducing broker registered pursuant to section 4f(a)(2), floor broker 
or floor trader exempt from registration pursuant to section 4f(a)(3), 
associated person exempt from registration pursuant to section 4k(6), or 
board of trade designated as a contract market in a security futures 
product pursuant to section 5f shall be subject to such reasonable 
periodic or special examinations by representatives of the Commission as 
the Commission deems necessary or appropriate in the public interest, 
for the protection of investors, or otherwise in furtherance of the 
purposes of this Act, and the Commission, before conducting any such 
examination, shall give notice to the Securities and Exchange Commission 
of the proposed examination and consult with the Securities and Exchange 
Commission concerning the feasibility and desirability of coordinating 
the examination with examinations conducted by the Securities and 
Exchange Commission in order to avoid unnecessary regulatory duplication 
or undue regulatory burdens for the registrant or board of trade.
    ``(II) The Commission shall notify the Securities and Exchange 
Commission of any examination conducted of any futures commission 
merchant or introducing broker registered pursuant to section 4f(a)(2), 
floor broker or floor trader exempt from registration pursuant to 
section 4f(a)(3), associated person exempt from registration pursuant to 
section 4k(6), or board of trade designated as a contract market in a 
security futures product pursuant to section 5f, and, upon request, 
furnish to the Securities and Exchange Commission any examination report 
and data supplied to or prepared by the Commission in connection with 
the examination.
    ``(III) Before conducting an examination under subclause (I), the 
Commission shall use the reports of examinations, unless the information 
sought is unavailable in the reports, of any futures commission merchant 
or introducing broker registered pursuant to section 4f(a)(2), floor 
broker or floor trader exempt from registration pursuant to section 
4f(a)(3), associated person exempt from registration pursuant to section 
4k(6), or board of trade designated as a contract market in a security 
futures product pursuant to section 5f that is made by the Securities 
and Exchange Commission, a national securities association registered 
pursuant to section 15A(a) of the Securities Exchange Act of 1934 (15 
U.S.C. 78o-3(a)), or a national securities exchange registered pursuant 
to section 6(a) of the Securities Exchange Act of 1934 (15 U.S.C. 
78f(a)).
    ``(IV) Any records required under this subsection for a futures 
commission merchant or introducing broker registered pursuant

[[Page 114 STAT. 2763A-441]]

to section 4f(a)(2), floor broker or floor trader exempt from 
registration pursuant to section 4f(a)(3), associated person exempt from 
registration pursuant to section 4k(6), or board of trade designated as 
a contract market in a security futures product pursuant to section 5f, 
shall be limited to records with respect to accounts, agreements, 
contracts, and transactions involving security futures products.
    ``(v)(I) The Commission and the Securities and Exchange Commission, 
by rule, regulation, or order, may jointly modify the criteria specified 
in subclause (I) or (III) of clause (i), including the trading of 
security futures based on securities other than equity securities, to 
the extent such modification fosters the development of fair and orderly 
markets in security futures products, is necessary or appropriate in the 
public interest, and is consistent with the protection of investors.
    ``(II) The Commission and the Securities and Exchange Commission, by 
order, may jointly exempt any person from compliance with the criterion 
specified in clause (i)(IV) to the extent such exemption fosters the 
development of fair and orderly markets in security futures products, is 
necessary or appropriate in the public interest, and is consistent with 
the protection of investors.
    ``(vi)(I) Notwithstanding clauses (i) and (vii), until the 
compliance date, a board of trade shall not be required to meet the 
criterion specified in clause (i)(IV).
    ``(II) The Commission and the Securities and Exchange Commission 
shall jointly publish in the Federal Register a notice of the compliance 
date no later than 165 days before the compliance date.
    ``(III) For purposes of this clause, the term `compliance date' 
means the later of--
            ``(aa) 180 days after the end of the first full calendar 
        month period in which the average aggregate comparable share 
        volume for all security futures products based on single equity 
        securities traded on all designated contract markets and 
        registered derivatives transaction execution facilities equals 
        or exceeds 10 percent of the average aggregate comparable share 
        volume of options on single equity securities traded on all 
        national securities exchanges registered pursuant to section 
        6(a) of the Securities Exchange Act of 1934 and any national 
        securities associations registered pursuant to section 15A(a) of 
        such Act; or
            ``(bb) 2 years after the date on which trading in any 
        security futures product commences under this Act.

    ``(vii) It shall be unlawful for a board of trade to trade or 
execute a security futures product unless the board of trade has 
provided the Commission with a certification that the specific security 
futures product and the board of trade, as applicable, meet the criteria 
specified in subclauses (I) through (XI) of clause (i), except as 
otherwise provided in clause (vi).''.
    (b) Margin on Security Futures.--Section 2(a)(1)(C)(vi) of the 
Commodity Exchange Act (7 U.S.C. 2a(vi)) (as redesignated by section 34) 
is amended--
            (1) by redesignating subclause (V) as subclause (VI); and
            (2) by striking ``(vi)(I)'' and all that follows through 
        subclause (IV) and inserting the following:
            ``(v)(I) Notwithstanding any other provision of this Act, 
        any contract market in a stock index futures contract (or option

[[Page 114 STAT. 2763A-442]]

        thereon) other than a security futures product, or any 
        derivatives transaction execution facility on which such 
        contract or option is traded, shall file with the Board of 
        Governors of the Federal Reserve System any rule establishing or 
        changing the levels of margin (initial and maintenance) for such 
        stock index futures contract (or option thereon) other than 
        security futures products.
            ``(II) The Board may at any time request any contract market 
        or derivatives transaction execution facility to set the margin 
        for any stock index futures contract (or option thereon), other 
        than for any security futures product, at such levels as the 
        Board in its judgment determines are appropriate to preserve the 
        financial integrity of the contract market or derivatives 
        transaction execution facility, or its clearing system, or to 
        prevent systemic risk. If the contract market or derivatives 
        transaction execution facility fails to do so within the time 
        specified by the Board in its request, the Board may direct the 
        contract market or derivatives transaction execution facility to 
        alter or supplement the rules of the contract market or 
        derivatives transaction execution facility as specified in the 
        request.
            ``(III) Subject to such conditions as the Board may 
        determine, the Board may delegate any or all of its authority, 
        relating to margin for any stock index futures contract (or 
        option thereon), other than security futures products, under 
        this clause to the Commission.
            ``(IV) It shall be unlawful for any futures commission 
        merchant to, directly or indirectly, extend or maintain credit 
        to or for, or collect margin from any customer on any security 
        futures product unless such activities comply with the 
        regulations prescribed pursuant to section 7(c)(2)(B) of the 
        Securities Exchange Act of 1934.
            ``(V) Nothing in this clause shall supersede or limit the 
        authority granted to the Commission in section 8a(9) to direct a 
        contract market or registered derivatives transaction execution 
        facility, on finding an emergency to exist, to raise temporary 
        margin levels on any futures contract, or option on the contract 
        covered by this clause, or on any security futures product.''.

    (c) Dual Trading.--Section 4j of the Commodity Exchange Act (7 
U.S.C. 6j) is amended to read as follows:

``SEC. 4j. RESTRICTIONS ON DUAL TRADING IN SECURITY FUTURES PRODUCTS ON 
            DESIGNATED CONTRACT MARKETS AND REGISTERED DERIVATIVES 
            TRANSACTION EXECUTION FACILITIES.

    ``(a) The Commission shall issue regulations to prohibit the 
privilege of dual trading in security futures products on each contract 
market and registered derivatives transaction execution facility. The 
regulations issued by the Commission under this section--
            ``(1) shall provide that the prohibition of dual trading 
        thereunder shall take effect upon issuance of the regulations; 
        and
            ``(2) shall provide exceptions, as the Commission determines 
        appropriate, to ensure fairness and orderly trading in security 
        futures product markets, including--
                    ``(A) exceptions for spread transactions and the 
                correction of trading errors;

[[Page 114 STAT. 2763A-443]]

                    ``(B) allowance for a customer to designate in 
                writing not less than once annually a named floor broker 
                to execute orders for such customer, notwithstanding the 
                regulations to prohibit the privilege of dual trading 
                required under this section; and
                    ``(C) other measures reasonably designed to 
                accommodate unique or special characteristics of 
                individual boards of trade or contract markets, to 
                address emergency or unusual market conditions, or 
                otherwise to further the public interest consistent with 
                the promotion of market efficiency, innovation, and 
                expansion of investment opportunities, the protection of 
                investors, and with the purposes of this section.

    ``(b) As used in this section, the term `dual trading' means the 
execution of customer orders by a floor broker during the same trading 
session in which the floor broker executes any trade in the same 
contract market or registered derivatives transaction execution facility 
for--
            ``(1) the account of such floor broker;
            ``(2) an account for which such floor broker has trading 
        discretion; or
            ``(3) an account controlled by a person with whom such floor 
        broker has a relationship through membership in a broker 
        association.

    ``(c) As used in this section, the term `broker association' shall 
include two or more contract market members or registered derivatives 
transaction execution facility members with floor trading privileges of 
whom at least one is acting as a floor broker, who--
            ``(1) engage in floor brokerage activity on behalf of the 
        same employer,
            ``(2) have an employer and employee relationship which 
        relates to floor brokerage activity,
            ``(3) share profits and losses associated with their 
        brokerage or trading activity, or
            ``(4) regularly share a deck of orders.''.

    (d) Exemption From Registration for Investment Advisers.--Section 4m 
of the Commodity Exchange Act (7 U.S.C. 6m) is amended by adding at the 
end the following:
    ``(3) Subsection (1) of this section shall not apply to any 
commodity trading advisor that is registered with the Securities and 
Exchange Commission as an investment adviser whose business does not 
consist primarily of acting as a commodity trading advisor, as defined 
in section 1a(6), and that does not act as a commodity trading advisor 
to any investment trust, syndicate, or similar form of enterprise that 
is engaged primarily in trading in any commodity for future delivery on 
or subject to the rules of any contract market or registered derivatives 
transaction execution facility.''.
    (e) Exemption From Investigations of Markets in Underlying 
Securities.--Section 16 of the Commodity Exchange Act (7 U.S.C. 20) is 
amended by adding at the end the following:
    ``(e) This section shall not apply to investigations involving any 
security underlying a security futures product.''.
    (f ) Rulemaking Authority To Address Duplicative Regulation of Dual 
Registrants.--Section 4d of the Commodity Exchange Act (7 U.S.C. 6d) is 
amended--
            (1) by inserting ``(a)'' before the first undesignated 
        paragraph;

[[Page 114 STAT. 2763A-444]]

            (2) by inserting ``(b)'' before the second undesignated 
        paragraph; and
            (3) by adding at the end the following:

    ``(c) Consistent with this Act, the Commission, in consultation with 
the Securities and Exchange Commission, shall issue such rules, 
regulations, or orders as are necessary to avoid duplicative or 
conflicting regulations applicable to any futures commission merchant 
registered with the Commission pursuant to section 4f(a) (except 
paragraph (2) thereof ), that is also registered with the Securities and 
Exchange Commission pursuant to section 15(b) of the Securities Exchange 
Act (except paragraph (11) thereof ), involving the application of--
            ``(1) section 8, section 15(c)(3), and section 17 of the 
        Securities Exchange Act of 1934 and the rules and regulations 
        thereunder related to the treatment of customer funds, 
        securities, or property, maintenance of books and records, 
        financial reporting or other financial responsibility rules (as 
        defined in section 3(a)(40) of the Securities Exchange Act of 
        1934), involving security futures products; and
            ``(2) similar provisions of this Act and the rules and 
        regulations thereunder involving security futures products.''.

    (g) Obligation To Address Duplicative Regulation of Dual 
Registrants.--Section 17 of the Commodity Exchange Act (7 U.S.C. 21) is 
amended by adding at the end the following:
    ``(r) Consistent with this Act, each futures association registered 
under this section shall issue such rules as are necessary to avoid 
duplicative or conflicting rules applicable to any futures commission 
merchant registered with the Commission pursuant to section 4f(a) of 
this Act (except paragraph (2) thereof ), that is also registered with 
the Securities and Exchange Commission pursuant to section 15(b) of the 
Securities and Exchange Act of 1934 (except paragraph (11) thereof ), 
with respect to the application of--
            ``(1) rules of such futures association of the type 
        specified in section 4d(3) of this Act involving security 
        futures products; and
            ``(2) similar rules of national securities associations 
        registered pursuant to section 15A(a) of the Securities and 
        Exchange Act of 1934 involving security futures products.''.

    (h) Obligation To Address Duplicative Regulation of Dual 
Registrants.--Section 5c of the Commodity Exchange Act (as added by 
section 114) is amended by adding at the end the following:
    ``(f ) Consistent with this Act, each designated contract market and 
registered derivatives transaction execution facility shall issue such 
rules as are necessary to avoid duplicative or conflicting rules 
applicable to any futures commission merchant registered with the 
Commission pursuant to section 4f(a) of this Act (except paragraph (2) 
thereof ), that is also registered with the Securities and Exchange 
Commission pursuant to section 15(b) of the Securities Exchange Act of 
1934 (except paragraph (11) thereof ) with respect to the application 
of--
            ``(1) rules of such designated contract market or registered 
        derivatives transaction execution facility of the type specified 
        in section 4d(3) of this Act involving security futures 
        products; and
            ``(2) similar rules of national securities associations 
        registered pursuant to section 15A(a) of the Securities Exchange

[[Page 114 STAT. 2763A-445]]

        Act of 1934 and national securities exchanges registered 
        pursuant to section 6(g) of such Act involving security futures 
        products.''.

    (i) Obligation To Address Security Futures Products Traded on 
Foreign Exchanges.--Section 2(a)(1) of the Commodity Exchange Act (7 
U.S.C. 2, 2a, and 4) is amended by adding at the end the following:
    ``(E)(i) To the extent necessary or appropriate in the public 
interest, to promote fair competition, and consistent with promotion of 
market efficiency, innovation, and expansion of investment 
opportunities, the protection of investors, and the maintenance of fair 
and orderly markets, the Commission and the Securities and Exchange 
Commission shall jointly issue such rules, regulations, or orders as are 
necessary and appropriate to permit the offer and sale of a security 
futures product traded on or subject to the rules of a foreign board of 
trade to United States persons.
    ``(ii) The rules, regulations, or orders adopted under clause (i) 
shall take into account, as appropriate, the nature and size of the 
markets that the securities underlying the security futures product 
reflects.''.
    ( j) Security Futures Products Traded on Foreign Boards of Trade.--
Section 2(a)(1) of the Commodity Exchange Act (7 U.S.C. 2, 2a, and 4) is 
amended by adding at the end the following:
    ``(F)(i) Nothing in this Act is intended to prohibit a futures 
commission merchant from carrying security futures products traded on or 
subject to the rules of a foreign board of trade in the accounts of 
persons located outside of the United States.
    ``(ii) Nothing in this Act is intended to prohibit any eligible 
contract participant located in the United States from purchasing or 
carrying securities futures products traded on or subject to the rules 
of a foreign board of trade, exchange, or market to the same extent such 
person may be authorized to purchase or carry other securities traded on 
a foreign board of trade, exchange, or market so long as any underlying 
security for such security futures products is traded principally on, 
by, or through any exchange or market located outside the United 
States.''.

SEC. 252. APPLICATION OF THE COMMODITY EXCHANGE ACT TO NATIONAL 
            SECURITIES EXCHANGES AND NATIONAL SECURITIES ASSOCIATIONS 
            THAT TRADE SECURITY FUTURES.

    (a) Notice Designation of National Securities Exchanges and National 
Securities Associations.--The Commodity Exchange Act is amended by 
inserting after section 5e (7 U.S.C. 7b), as redesignated by section 
21(1), the following:

``SEC. 5f. DESIGNATION OF SECURITIES EXCHANGES AND ASSOCIATIONS AS 
            CONTRACT MARKETS.

    ``(a) Any board of trade that is registered with the Securities and 
Exchange Commission as a national securities exchange, is a national 
securities association registered pursuant to section 15A(a) of the 
Securities Exchange Act of 1934, or is an alternative trading system 
shall be a designated contract market in security futures products if--
            ``(1) such national securities exchange, national securities 
        association, or alternative trading system lists or trades no 
        other contracts of sale for future delivery, except for security 
        futures products;

[[Page 114 STAT. 2763A-446]]

            ``(2) such national securities exchange, national securities 
        association, or alternative trading system files written notice 
        with the Commission in such form as the Commission, by rule, may 
        prescribe containing such information as the Commission, by 
        rule, may prescribe as necessary or appropriate in the public 
        interest or for the protection of customers; and
            ``(3) the registration of such national securities exchange, 
        national securities association, or alternative trading system 
        is not suspended pursuant to an order by the Securities and 
        Exchange Commission.

Such designation shall be effective contemporaneously with the 
submission of notice, in written or electronic form, to the Commission.
    ``(b)(1) A national securities exchange, national securities 
association, or alternative trading system that is designated as a 
contract market pursuant to section 5f shall be exempt from the 
following provisions of this Act and the rules thereunder:
            ``(A) Subsections (c), (e), and (g) of section 4c.
            ``(B) Section 4j.
            ``(C) Section 5.
            ``(D) Section 5c.
            ``(E) Section 6a.
            ``(F) Section 8(d).
            ``(G) Section 9(f ).
            ``(H) Section 16.

    ``(2) An alternative trading system that is a designated contract 
market under this section shall be required to be a member of a futures 
association registered under section 17 and shall be exempt from any 
provision of this Act that would require such alternative trading system 
to--
            ``(A) set rules governing the conduct of subscribers other 
        than the conduct of such subscribers' trading on such 
        alternative trading system; or
            ``(B) discipline subscribers other than by exclusion from 
        trading.

    ``(3) To the extent that an alternative trading system is exempt 
from any provision of this Act pursuant to paragraph (2) of this 
subsection, the futures association registered under section 17 of which 
the alternative trading system is a member shall set rules governing the 
conduct of subscribers to the alternative trading system and discipline 
the subscribers.
    ``(4)(A) Except as provided in subparagraph (B), but notwithstanding 
any other provision of this Act, the Commission, by rule, regulation, or 
order, may conditionally or unconditionally exempt any designated 
contract market in security futures subject to the designation 
requirement of this section from any provision of this Act or of any 
rule or regulation thereunder, to the extent such exemption is necessary 
or appropriate in the public interest and is consistent with the 
protection of investors.
    ``(B) The Commission shall, by rule or regulation, determine the 
procedures under which an exemptive order under this section is granted 
and may, in its sole discretion, decline to entertain any application 
for an order of exemption under this section.
    ``(C) An alternative trading system shall not be deemed to be an 
exchange for any purpose as a result of the designation of such 
alternative trading system as a contract market under this section.''.

[[Page 114 STAT. 2763A-447]]

    (b) Notice Registration of Certain Securities Broker-Dealers; 
Exemption From Registration for Certain Securities Broker-Dealers.--
Section 4f(a) of the Commodity Exchange Act (7 U.S.C. 6f(a)) is 
amended--
            (1) by inserting ``(1)'' after ``(a)''; and
            (2) by adding at the end the following:

    ``(2) Notwithstanding paragraph (1), and except as provided in 
paragraph (3), any broker or dealer that is registered with the 
Securities and Exchange Commission shall be registered as a futures 
commission merchant or introducing broker, as applicable, if--
            ``(A) the broker or dealer limits its solicitation of 
        orders, acceptance of orders, or execution of orders, or placing 
        of orders on behalf of others involving any contracts of sale of 
        any commodity for future delivery, on or subject to the rules of 
        any contract market or registered derivatives transaction 
        execution facility to security futures products;
            ``(B) the broker or dealer files written notice with the 
        Commission in such form as the Commission, by rule, may 
        prescribe containing such information as the Commission, by 
        rule, may prescribe as necessary or appropriate in the public 
        interest or for the protection of investors;
            ``(C) the registration of the broker or dealer is not 
        suspended pursuant to an order of the Securities and Exchange 
        Commission; and
            ``(D) the broker or dealer is a member of a national 
        securities association registered pursuant to section 15A(a) of 
        the Securities Exchange Act of 1934.

The registration shall be effective contemporaneously with the 
submission of notice, in written or electronic form, to the Commission.
    ``(3) A floor broker or floor trader shall be exempt from the 
registration requirements of section 4e and paragraph (1) of this 
subsection if--
            ``(A) the floor broker or floor trader is a broker or dealer 
        registered with the Securities and Exchange Commission;
            ``(B) the floor broker or floor trader limits its 
        solicitation of orders, acceptance of orders, or execution of 
        orders, or placing of orders on behalf of others involving any 
        contracts of sale of any commodity for future delivery, on or 
        subject to the rules of any contract market to security futures 
        products; and
            ``(C) the registration of the floor broker or floor trader 
        is not suspended pursuant to an order of the Securities and 
        Exchange Commission.''.

    (c) Exemption for Securities Broker-Dealers From Certain Provisions 
of the Commodity Exchange Act.--Section 4f(a) of the Commodity Exchange 
Act (7 U.S.C. 6f(a)) is amended by inserting after paragraph (3), as 
added by subsection (b) of this section, the following:
    ``(4)(A) A broker or dealer that is registered as a futures 
commission merchant or introducing broker pursuant to paragraph (2), or 
that is a floor broker or floor trader exempt from registration pursuant 
to paragraph (3), shall be exempt from the following provisions of this 
Act and the rules thereunder:
            ``(i) Subsections (b), (d), (e), and (g) of section 4c.
            ``(ii) Sections 4d, 4e, and 4h.
            ``(iii) Subsections (b) and (c) of this section.

[[Page 114 STAT. 2763A-448]]

            ``(iv) Section 4j.
            ``(v) Section 4k(1).
            ``(vi) Section 4p.
            ``(vii) Section 6d.
            ``(viii) Subsections (d) and (g) of section 8.
            ``(ix) Section 16.

    ``(B)(i) Except as provided in clause (ii) of this subparagraph, but 
notwithstanding any other provision of this Act, the Commission, by 
rule, regulation, or order, may conditionally or unconditionally exempt 
any broker or dealer subject to the registration requirement of 
paragraph (2), or any broker or dealer exempt from registration pursuant 
to paragraph (3), from any provision of this Act or of any rule or 
regulation thereunder, to the extent the exemption is necessary or 
appropriate in the public interest and is consistent with the protection 
of investors.
    ``(ii) The Commission shall, by rule or regulation, determine the 
procedures under which an exemptive order under this section shall be 
granted and may, in its sole discretion, decline to entertain any 
application for an order of exemption under this section.
    ``(C)(i) A broker or dealer that is registered as a futures 
commission merchant or introducing broker pursuant to paragraph (2) or 
an associated person thereof, or that is a floor broker or floor trader 
exempt from registration pursuant to paragraph (3), shall not be 
required to become a member of any futures association registered under 
section 17.
    ``(ii) No futures association registered under section 17 shall 
limit its members from carrying an account, accepting an order, or 
transacting business with a broker or dealer that is registered as a 
futures commission merchant or introducing broker pursuant to paragraph 
(2) or an associated person thereof, or that is a floor broker or floor 
trader exempt from registration pursuant to paragraph (3).''.
    (d) Exemptions for Associated Persons of Securities Broker-
Dealers.--Section 4k of the Commodity Exchange Act (7 U.S.C. 6k), is 
amended by inserting after paragraph (4), as added by subsection (c) of 
this section, the following:
    ``(5) Any associated person of a broker or dealer that is registered 
with the Securities and Exchange Commission, and who limits its 
solicitation of orders, acceptance of orders, or execution of orders, or 
placing of orders on behalf of others involving any contracts of sale of 
any commodity for future delivery or any option on such a contract, on 
or subject to the rules of any contract market or registered derivatives 
transaction execution facility to security futures products, shall be 
exempt from the following provisions of this Act and the rules 
thereunder:
            ``(A) Subsections (b), (d), (e), and (g) of section 4c.
            ``(B) Sections 4d, 4e, and 4h.
            ``(C) Subsections (b) and (c) of section 4f.
            ``(D) Section 4j.
            ``(E) Paragraph (1) of this section.
            ``(F) Section 4p.
            ``(G) Section 6d.
            ``(H) Subsections (d) and (g) of section 8.
            ``(I) Section 16.''.

[[Page 114 STAT. 2763A-449]]

SEC. 253. NOTIFICATION OF INVESTIGATIONS AND ENFORCEMENT ACTIONS.

    (a) Section 8(a) of the Commodity Exchange Act (7 U.S.C. 12(a)) is 
amended by adding at the end the following:
    ``(3) The Commission shall provide the Securities and Exchange 
Commission with notice of the commencement of any proceeding and a copy 
of any order entered by the Commission against any futures commission 
merchant or introducing broker registered pursuant to section 4f(a)(2), 
any floor broker or floor trader exempt from registration pursuant to 
section 4f(a)(3), any associated person exempt from registration 
pursuant to section 4k(6), or any board of trade designated as a 
contract market pursuant to section 5f.''.
    (b) Section 6 of the Commodity Exchange Act (7 U.S.C. 8, 9, 9a, 9b, 
13b, 15) is amended by adding at the end the following:
    ``(g) The Commission shall provide the Securities and Exchange 
Commission with notice of the commencement of any proceeding and a copy 
of any order entered by the Commission pursuant to subsections (c) and 
(d) of this section against any futures commission merchant or 
introducing broker registered pursuant to section 4f(a)(2), any floor 
broker or floor trader exempt from registration pursuant to section 
4f(a)(3), any associated person exempt from registration pursuant to 
section 4k(6), or any board of trade designated as a contract market 
pursuant to section 5f.''.
    (c) Section 6c of the Commodity Exchange Act (7 U.S.C. 13a-1) is 
amended by adding at the end the following:
    ``(h) The Commission shall provide the Securities and Exchange 
Commission with notice of the commencement of any proceeding and a copy 
of any order entered by the Commission against any futures commission 
merchant or introducing broker registered pursuant to section 4f(a)(2), 
any floor broker or floor trader exempt from registration pursuant to 
section 4f(a)(3), any associated person exempt from registration 
pursuant to section 4k(6), or any board of trade designated as a 
contract market pursuant to section 5f.''.

             TITLE III--LEGAL CERTAINTY FOR SWAP AGREEMENTS

SEC. 301. SWAP AGREEMENT.

    (a) Amendment.--Title II of the Gramm-Leach-Bliley Act (Public Law 
106-102) is amended by inserting after section 206 the following new 
sections:

``SEC. 206A. SWAP AGREEMENT.

    ``(a) In General.--Except as provided in subsection (b), as used in 
this section, the term `swap agreement' means any agreement, contract, 
or transaction between eligible contract participants (as defined in 
section 1a(12) of the Commodity Exchange Act as in effect on the date of 
the enactment of this section), other than a person that is an eligible 
contract participant under section 1a(12)(C) of the Commodity Exchange 
Act, the material terms of which (other than price and quantity) are 
subject to individual negotiation, and that--
            ``(1) is a put, call, cap, floor, collar, or similar option 
        of any kind for the purchase or sale of, or based on the value 
        of, one or more interest or other rates, currencies, 
        commodities,

[[Page 114 STAT. 2763A-450]]

        indices, quantitative measures, or other financial or economic 
        interests or property of any kind;
            ``(2) provides for any purchase, sale, payment or delivery 
        (other than a dividend on an equity security) that is dependent 
        on the occurrence, non-occurrence, or the extent of the 
        occurrence of an event or contingency associated with a 
        potential financial, economic, or commercial consequence;
            ``(3) provides on an executory basis for the exchange, on a 
        fixed or contingent basis, of one or more payments based on the 
        value or level of one or more interest or other rates, 
        currencies, commodities, securities, instruments of 
        indebtedness, indices, quantitative measures, or other financial 
        or economic interests or property of any kind, or any interest 
        therein or based on the value thereof, and that transfers, as 
        between the parties to the transaction, in whole or in part, the 
        financial risk associated with a future change in any such value 
        or level without also conveying a current or future direct or 
        indirect ownership interest in an asset (including any 
        enterprise or investment pool) or liability that incorporates 
        the financial risk so transferred, including any such agreement, 
        contract, or transaction commonly known as an interest rate 
        swap, including a rate floor, rate cap, rate collar, cross-
        currency rate swap, basis swap, currency swap, equity index 
        swap, equity swap, debt index swap, debt swap, credit spread, 
        credit default swap, credit swap, weather swap, or commodity 
        swap;
            ``(4) provides for the purchase or sale, on a fixed or 
        contingent basis, of any commodity, currency, instrument, 
        interest, right, service, good, article, or property of any 
        kind; or
            ``(5) is any combination or permutation of, or option on, 
        any agreement, contract, or transaction described in any of 
        paragraphs (1) through (4).

    ``(b) Exclusions.--The term `swap agreement' does not include--
            ``(1) any put, call, straddle, option, or privilege on any 
        security, certificate of deposit, or group or index of 
        securities, including any interest therein or based on the value 
        thereof;
            ``(2) any put, call, straddle, option, or privilege entered 
        into on a national securities exchange registered pursuant to 
        section 6(a) of the Securities Exchange Act of 1934 relating to 
        foreign currency;
            ``(3) any agreement, contract, or transaction providing for 
        the purchase or sale of one or more securities on a fixed basis;
            ``(4) any agreement, contract, or transaction providing for 
        the purchase or sale of one or more securities on a contingent 
        basis, unless such agreement, contract, or transaction 
        predicates such purchase or sale on the occurrence of a bona 
        fide contingency that might reasonably be expected to affect or 
        be affected by the creditworthiness of a party other than a 
        party to the agreement, contract, or transaction;
            ``(5) any note, bond, or evidence of indebtedness that is a 
        security as defined in section 2(a)(1) of the Securities Act of 
        1933 or section 3(a)(10) of the Securities Exchange Act of 1934; 
        or
            ``(6) any agreement, contract, or transaction that is--
                    ``(A) based on a security; and

[[Page 114 STAT. 2763A-451]]

                    ``(B) entered into directly or through an 
                underwriter (as defined in section 2(a) of the 
                Securities Act of 1933) by the issuer of such security 
                for the purposes of raising capital, unless such 
                agreement, contract, or transaction is entered into to 
                manage a risk associated with capital raising.

    ``(c) Rule of Construction Regarding Master Agreements.--As used in 
this section, the term `swap agreement' shall be construed to include a 
master agreement that provides for an agreement, contract, or 
transaction that is a swap agreement pursuant to subsections (a) and 
(b), together with all supplements to any such master agreement, without 
regard to whether the master agreement contains an agreement, contract, 
or transaction that is not a swap agreement pursuant to subsections (a) 
and (b), except that the master agreement shall be considered to be a 
swap agreement only with respect to each agreement, contract, or 
transaction under the master agreement that is a swap agreement pursuant 
to subsections (a) and (b).

``SEC. 206B. SECURITY-BASED SWAP AGREEMENT.

    ``As used in this section, the term `security-based swap agreement' 
means a swap agreement (as defined in section 206A) of which a material 
term is based on the price, yield, value, or volatility of any security 
or any group or index of securities, or any interest therein.

``SEC. 206C. NON-SECURITY-BASED SWAP AGREEMENT.

    ``As used in this section, the term `non-security-based swap 
agreement' means any swap agreement (as defined in section 206A) that is 
not a security-based swap agreement (as defined in section 206B).''.
    (b) Security Definition.--As used in the amendment made by 
subsection (a), the term ``security'' has the same meaning as in section 
2(a)(1) of the Securities Act of 1933 or section 3(a)(10) of the 
Securities Exchange Act of 1934.

SEC. 302. AMENDMENTS TO THE SECURITIES ACT OF 1933.

    (a) Enforcement Focus.--The Securities Act of 1933 is amended by 
inserting after section 2 (15 U.S.C. 77b) the following new section:

``SEC. 2A. SWAP AGREEMENTS.

    ``(a) Non-Security-Based Swap Agreements.--The definition of 
`security' in section 2(a)(1) of this title does not include any non-
security-based swap agreement (as defined in section 206C of the Gramm-
Leach-Bliley Act).
    ``(b) Security-Based Swap Agreements.--
            ``(1) The definition of `security' in section 2(a)(1) of 
        this title does not include any security-based swap agreement 
        (as defined in section 206B of the Gramm-Leach-Bliley Act).
            ``(2) The Commission is prohibited from registering, or 
        requiring, recommending, or suggesting, the registration under 
        this title of any security-based swap agreement (as defined in 
        section 206B of the Gramm-Leach-Bliley Act). If the Commission 
        becomes aware that a registrant has filed a registration

[[Page 114 STAT. 2763A-452]]

        statement with respect to such a swap agreement, the Commission 
        shall promptly so notify the registrant. Any such registration 
        statement with respect to such a swap agreement shall be void 
        and of no force or effect.
            ``(3) The Commission is prohibited from--
                    ``(A) promulgating, interpreting, or enforcing 
                rules; or
                    ``(B) issuing orders of general applicability;
        under this title in a manner that imposes or specifies reporting 
        or recordkeeping requirements, procedures, or standards as 
        prophylactic measures against fraud, manipulation, or insider 
        trading with respect to any security-based swap agreement (as 
        defined in section 206B of the Gramm-Leach-Bliley Act).
            ``(4) References in this title to the `purchase' or `sale' 
        of a security-based swap agreement shall be deemed to mean the 
        execution, termination (prior to its scheduled maturity date), 
        assignment, exchange, or similar transfer or conveyance of, or 
        extinguishing of rights or obligations under, a security-based 
        swap agreement (as defined in section 206B of the Gramm-Leach-
        Bliley Act), as the context may require.''.

    (b) Anti-Fraud and Anti-Manipulation Enforcement Authority.--Section 
17(a) of the Securities Act of 1933 (15 U.S.C. 77q(a)) is amended to 
read as follows:
    ``(a) It shall be unlawful for any person in the offer or sale of 
any securities or any security-based swap agreement (as defined in 
section 206B of the Gramm-Leach-Bliley Act) by the use of any means or 
instruments of transportation or communication in interstate commerce or 
by use of the mails, directly or indirectly--
            ``(1) to employ any device, scheme, or artifice to defraud, 
        or
            ``(2) to obtain money or property by means of any untrue 
        statement of a material fact or any omission to state a material 
        fact necessary in order to make the statements made, in light of 
        the circumstances under which they were made, not misleading; or
            ``(3) to engage in any transaction, practice, or course of 
        business which operates or would operate as a fraud or deceit 
        upon the purchaser.''.

    (c) Limitation.--Section 17 of the Securities Act of 1933 is amended 
by adding at the end the following new subsection:
    ``(d) The authority of the Commission under this section with 
respect to security-based swap agreements (as defined in section 206B of 
the Gramm-Leach-Bliley Act) shall be subject to the restrictions and 
limitations of section 2A(b) of this title.''.

SEC. 303. AMENDMENTS TO THE SECURITIES EXCHANGE ACT OF 1934.

    (a) Enforcement Focus.--The Securities Exchange Act of 1934 is 
amended by inserting after section 3 (15 U.S.C. 78c) the following new 
section:

``SEC. 3A. SWAP AGREEMENTS.

    ``(a) Non-Security-Based Swap Agreements.--The definition of 
`security' in section 3(a)(10) of this title does not include any non-
security-based swap agreement (as defined in section 206C of the Gramm-
Leach-Bliley Act).
    ``(b) Security-Based Swap Agreements.--
            ``(1) The definition of `security' in section 3(a)(10) of 
        this title does not include any security-based swap agreement 
        (as defined in section 206B of the Gramm-Leach-Bliley Act).

[[Page 114 STAT. 2763A-453]]

            ``(2) The Commission is prohibited from registering, or 
        requiring, recommending, or suggesting, the registration under 
        this title of any security-based swap agreement (as defined in 
        section 206B of the Gramm-Leach-Bliley Act). If the Commission 
        becomes aware that a registrant has filed a registration 
        application with respect to such a swap agreement, the 
        Commission shall promptly so notify the registrant. Any such 
        registration with respect to such a swap agreement shall be void 
        and of no force or effect.
            ``(3) Except as provided in section 16(a) with respect to 
        reporting requirements, the Commission is prohibited from--
                    ``(A) promulgating, interpreting, or enforcing 
                rules; or
                    ``(B) issuing orders of general applicability;
        under this title in a manner that imposes or specifies reporting 
        or recordkeeping requirements, procedures, or standards as 
        prophylactic measures against fraud, manipulation, or insider 
        trading with respect to any security-based swap agreement (as 
        defined in section 206B of the Gramm-Leach-Bliley Act).
            ``(4) References in this title to the `purchase' or `sale' 
        of a security-based swap agreement (as defined in section 206B 
        of the Gramm-Leach-Bliley Act) shall be deemed to mean the 
        execution, termination (prior to its scheduled maturity date), 
        assignment, exchange, or similar transfer or conveyance of, or 
        extinguishing of rights or obligations under, a security-based 
        swap agreement, as the context may require.''.

    (b) Anti-Fraud, Anti-Manipulation Enforcement Authority.--Paragraphs 
(2) through (5) of section 9(a) of the Securities Exchange Act of 1934 
(15 U.S.C. 78i(a)(2)-(5)) are amended to read as follows:
    ``(2) To effect, alone or with one or more other persons, a series 
of transactions in any security registered on a national securities 
exchange or in connection with any security-based swap agreement (as 
defined in section 206B of the Gramm-Leach-Bliley Act) with respect to 
such security creating actual or apparent active trading in such 
security, or raising or depressing the price of such security, for the 
purpose of inducing the purchase or sale of such security by others.
    ``(3) If a dealer or broker, or other person selling or offering for 
sale or purchasing or offering to purchase the security or a security-
based swap agreement (as defined in section 206B of the Gramm-Leach-
Bliley Act) with respect to such security, to induce the purchase or 
sale of any security registered on a national securities exchange or any 
security-based swap agreement (as defined in section 206B of the Gramm-
Leach-Bliley Act) with respect to such security by the circulation or 
dissemination in the ordinary course of business of information to the 
effect that the price of any such security will or is likely to rise or 
fall because of market operations of any one or more persons conducted 
for the purpose of raising or depressing the price of such security.
    ``(4) If a dealer or broker, or the person selling or offering for 
sale or purchasing or offering to purchase the security or a security-
based swap agreement (as defined in section 206B of the Gramm-Leach-
Bliley Act) with respect to such security, to make, regarding any 
security registered on a national securities exchange or any security-
based swap agreement (as defined in section 206B of the Gramm-Leach-
Bliley Act) with respect to such security, for the purpose of inducing 
the purchase or sale of such security or

[[Page 114 STAT. 2763A-454]]

such security-based swap agreement, any statement which was at the time 
and in the light of the circumstances under which it was made, false or 
misleading with respect to any material fact, and which he knew or had 
reasonable ground to believe was so false or misleading.
    ``(5) For a consideration, received directly or indirectly from a 
dealer or broker, or other person selling or offering for sale or 
purchasing or offering to purchase the security or a security-based swap 
agreement (as defined in section 206B of the Gramm-Leach-Bliley Act) 
with respect to such security, to induce the purchase of any security 
registered on a national securities exchange or any security-based swap 
agreement (as defined in section 206B of the Gramm-Leach-Bliley Act) 
with respect to such security by the circulation or dissemination of 
information to the effect that the price of any such security will or is 
likely to rise or fall because of the market operations of any one or 
more persons conducted for the purpose of raising or depressing the 
price of such security.''.
    (c) Limitation.--Section 9 of the Securities Exchange Act of 1934 is 
amended by adding at the end the following new subsection:
    ``(i) The authority of the Commission under this section with 
respect to security-based swap agreements (as defined in section 206B of 
the Gramm-Leach-Bliley Act) shall be subject to the restrictions and 
limitations of section 3A(b) of this title.''.
    (d) Regulations on the Use of Manipulative and Deceptive Devices.--
Section 10 of the Securities Exchange Act of 1934 (15 U.S.C. 78j) is 
amended--
            (1) in subsection (b), by inserting ``or any securities-
        based swap agreement (as defined in section 206B of the Gramm-
        Leach-Bliley Act),'' before ``any manipulative or deceptive 
        device''; and
            (2) by adding at the end the following:

``Rules promulgated under subsection (b) that prohibit fraud, 
manipulation, or insider trading (but not rules imposing or specifying 
reporting or recordkeeping requirements, procedures, or standards as 
prophylactic measures against fraud, manipulation, or insider trading), 
and judicial precedents decided under subsection (b) and rules 
promulgated thereunder that prohibit fraud, manipulation, or insider 
trading, shall apply to security-based swap agreements (as defined in 
section 206B of the Gramm-Leach-Bliley Act) to the same extent as they 
apply to securities. Judicial precedents decided under section 17(a) of 
the Securities Act of 1933 and sections 9, 15, 16, 20, and 21A of this 
title, and judicial precedents decided under applicable rules 
promulgated under such sections, shall apply to security-based swap 
agreements (as defined in section 206B of the Gramm-Leach-Bliley Act) to 
the same extent as they apply to securities.''.
    (e) Broker, Dealer Anti-Fraud, Anti-Manipulation Enforcement 
Authority.--Section 15(c)(1) of the Securities Exchange Act of 1934 (15 
U.S.C. 78o(c)(1)) is amended to read as follows:
    ``(c)(1)(A) No broker or dealer shall make use of the mails or any 
means or instrumentality of interstate commerce to effect any 
transaction in, or to induce or attempt to induce the purchase or sale 
of, any security (other than commercial paper, bankers' acceptances, or 
commercial bills) otherwise than on a national securities exchange of 
which it is a member, or any security-based

[[Page 114 STAT. 2763A-455]]

swap agreement (as defined in section 206B of the Gramm-Leach-Bliley 
Act), by means of any manipulative, deceptive, or other fraudulent 
device or contrivance.
    ``(B) No municipal securities dealer shall make use of the mails or 
any means or instrumentality of interstate commerce to effect any 
transaction in, or to induce or attempt to induce the purchase or sale 
of, any municipal security or any security-based swap agreement (as 
defined in section 206B of the Gramm-Leach-Bliley Act) involving a 
municipal security by means of any manipulative, deceptive, or other 
fraudulent device or contrivance.
    ``(C) No government securities broker or government securities 
dealer shall make use of the mails or any means or instrumentality of 
interstate commerce to effect any transaction in, or to induce or to 
attempt to induce the purchase or sale of, any government security or 
any security-based swap agreement (as defined in section 206B of the 
Gramm-Leach-Bliley Act) involving a government security by means of any 
manipulative, deceptive, or other fraudulent device or contrivance.''.
    (f ) Limitation.--Section 15 of the Securities Exchange Act of 1934 
(15 U.S.C. 78o) is amended by adding at the end the following new 
subsection:
    ``(i) The authority of the Commission under this section with 
respect to security-based swap agreements (as defined in section 206B of 
the Gramm-Leach-Bliley Act) shall be subject to the restrictions and 
limitations of section 3A(b) of this title.''.
    (g) Anti-Insider Trading Enforcement Authority.--Subsections (a) and 
(b) of section 16 (15 U.S.C. 78p(a), (b)) of the Securities Exchange of 
1934 are amended to read as follows:
    ``(a) Every person who is directly or indirectly the beneficial 
owner of more than 10 per centum of any class of any equity security 
(other than an exempted security) which is registered pursuant to 
section 12 of this title, or who is a director or an officer of the 
issuer of such security, shall file, at the time of the registration of 
such security on a national securities exchange or by the effective date 
of a registration statement filed pursuant to section 12(g) of this 
title, or within ten days after he becomes such beneficial owner, 
director, or officer, a statement with the Commission (and, if such 
security is registered on a national securities exchange, also with the 
exchange) of the amount of all equity securities of such issuer of which 
he is the beneficial owner, and within ten days after the close of each 
calendar month thereafter, if there has been a change in such ownership 
or if such person shall have purchased or sold a security-based swap 
agreement (as defined in section 206B of the Gramm-Leach-Bliley Act) 
involving such equity security during such month, shall file with the 
Commission (and if such security is registered on a national securities 
exchange, shall also file with the exchange), a statement indicating his 
ownership at the close of the calendar month and such changes in his 
ownership and such purchases and sales of such security-based swap 
agreements as have occurred during such calendar month.
    ``(b) For the purpose of preventing the unfair use of information 
which may have been obtained by such beneficial owner, director, or 
officer by reason of his relationship to the issuer, any profit realized 
by him from any purchase and sale, or any sale and purchase, of any 
equity security of such issuer (other than an exempted security) or a 
security-based swap agreement (as defined

[[Page 114 STAT. 2763A-456]]

in section 206B of the Gramm-Leach-Bliley Act) involving any such equity 
security within any period of less than six months, unless such security 
or security-based swap agreement was acquired in good faith in 
connection with a debt previously contracted, shall inure to and be 
recoverable by the issuer, irrespective of any intention on the part of 
such beneficial owner, director, or officer in entering into such 
transaction of holding the security or security-based swap agreement 
purchased or of not repurchasing the security or security-based swap 
agreement sold for a period exceeding six months. Suit to recover such 
profit may be instituted at law or in equity in any court of competent 
jurisdiction by the issuer, or by the owner of any security of the 
issuer in the name and in behalf of the issuer if the issuer shall fail 
or refuse to bring such suit within sixty days after request or shall 
fail diligently to prosecute the same thereafter; but no such suit shall 
be brought more than two years after the date such profit was realized. 
This subsection shall not be construed to cover any transaction where 
such beneficial owner was not such both at the time of the purchase and 
sale, or the sale and purchase, of the security or security-based swap 
agreement (as defined in section 206B of the Gramm-Leach-Bliley Act) 
involved, or any transaction or transactions which the Commission by 
rules and regulations may exempt as not comprehended within the purpose 
of this subsection.''.
    (h) Limitation.--Section 16 of the Securities Exchange Act of 1934 
(15 U.S.C. 78p) is amended by adding at the end the following new 
subsection:
    ``(g) The authority of the Commission under this section with 
respect to security-based swap agreements (as defined in section 206B of 
the Gramm-Leach-Bliley Act) shall be subject to the restrictions and 
limitations of section 3A(b) of this title.''.
    (i) Material Nonpublic Information.--Section 20(d) of the Securities 
Exchange Act of 1934 (15 U.S.C. 78t(d)) is amended to read as follows:
    ``(d) Wherever communicating, or purchasing or selling a security 
while in possession of, material nonpublic information would violate, or 
result in liability to any purchaser or seller of the security under any 
provisions of this title, or any rule or regulation thereunder, such 
conduct in connection with a purchase or sale of a put, call, straddle, 
option, privilege or security-based swap agreement (as defined in 
section 206B of the Gramm-Leach-Bliley Act) with respect to such 
security or with respect to a group or index of securities including 
such security, shall also violate and result in comparable liability to 
any purchaser or seller of that security under such provision, rule, or 
regulation.''.
    ( j) Limitation.--Section 20 of the Securities Exchange Act of 1934 
(15 U.S.C. 78t) is amended by adding at the end the following new 
subsection:
    ``(f ) The authority of the Commission under this section with 
respect to security-based swap agreements (as defined in section 206B of 
the Gramm-Leach-Bliley Act) shall be subject to the restrictions and 
limitations of section 3A(b) of this title.''.
    (k) Civil Penalties.--Section 21A(a)(1) of the Securities Exchange 
Act of 1934 (15 U.S.C. 78u-1(a)(1)) is amended by inserting after 
``purchasing or selling a security'' the following: ``or security-based 
swap agreement (as defined in section 206B of the Gramm-Leach-Bliley 
Act)''.

[[Page 114 STAT. 2763A-457]]

    (l) Limitation.--Section 21A of the Securities Exchange Act of 1934 
(15 U.S.C. 78u-1) is amended by adding at the end the following new 
subsection:
    ``(g) The authority of the Commission under this section with 
respect to security-based swap agreements (as defined in section 206B of 
the Gramm-Leach-Bliley Act) shall be subject to the restrictions and 
limitations of section 3A(b) of this title.''.

SEC. 304. SAVINGS PROVISIONS.

    Nothing in this Act or the amendments made by this Act shall be 
construed as finding or implying that any swap agreement is or is not a 
security for any purpose under the securities laws. Nothing in this Act 
or the amendments made by this Act shall be construed as finding or 
implying that any swap agreement is or is not a futures contract or 
commodity option for any purpose under the Commodity Exchange Act.

          TITLE IV--REGULATORY RESPONSIBILITY FOR BANK PRODUCTS

SEC. 401. SHORT TITLE.

    This title may be cited as the ``Legal Certainty for Bank Products 
Act of 2000''.

SEC. 402. DEFINITIONS.

    (a) Bank.--In this title, the term ``bank'' means--
            (1) any depository institution (as defined in section 3(c) 
        of the Federal Deposit Insurance Act);
            (2) any foreign bank or branch or agency of a foreign bank 
        (each as defined in section 1(b) of the International Banking 
        Act of 1978);
            (3) any Federal or State credit union (as defined in section 
        101 of the Federal Credit Union Act);
            (4) any corporation organized under section 25A of the 
        Federal Reserve Act;
            (5) any corporation operating under section 25 of the 
        Federal Reserve Act;
            (6) any trust company; or
            (7) any subsidiary of any entity described in paragraph (1) 
        through (6) of this subsection, if the subsidiary is regulated 
        as if the subsidiary were part of the entity and is not a broker 
        or dealer (as such terms are defined in section 3 of the 
        Securities Exchange Act of 1934) or a futures commission 
        merchant (as defined in section 1a(20) of the Commodity Exchange 
        Act).

    (b) Identified Banking Product.--In this title, the term 
``identified banking product'' shall have the same meaning as in 
paragraphs (1) through (5) of section 206(a) of the Gramm-Leach-Bliley 
Act, except that in applying such section for purposes of this title--
            (1) the term ``bank'' shall have the meaning given in 
        subsection (a) of this section; and
            (2) the term ``qualified investor'' means eligible contract 
        participant (as defined in section 1a(12) of the Commodity 
        Exchange Act, as in effect on the date of the enactment of the 
        Commodity Futures Modernization Act of 2000).

[[Page 114 STAT. 2763A-458]]

    (c) Hybrid Instrument.--In this title, the term ``hybrid 
instrument'' means an identified banking product not excluded by section 
403 of this Act, offered by a bank, having one or more payments indexed 
to the value, level, or rate of, or providing for the delivery of, one 
or more commodities (as defined in section 1a(4) of the Commodity 
Exchange Act).
    (d) Covered Swap Agreement.--In this title, the term ``covered swap 
agreement'' means a swap agreement (as defined in section 206(b) of the 
Gramm-Leach-Bliley Act), including a credit or equity swap, based on a 
commodity other than an agricultural commodity enumerated in section 
1a(4) of the Commodity Exchange Act if--
            (1) the swap agreement--
                    (A) is entered into only between persons that are 
                eligible contract participants (as defined in section 
                1a(12) of the Commodity Exchange Act, as in effect on 
                the date of the enactment of the Commodity Futures 
                Modernization Act of 2000) at the time the persons enter 
                into the swap agreement; and
                    (B) is not entered into or executed on a trading 
                facility (as defined in section 1a(33) of the Commodity 
                Exchange Act); or
            (2) the swap agreement--
                    (A) is entered into or executed on an electronic 
                trading facility (as defined in section 1a(10) of the 
                Commodity Exchange Act);
                    (B) is entered into on a principal-to-principal 
                basis between parties trading for their own accounts or 
                as described in section 1a(12)(B)(ii) of the Commodity 
                Exchange Act;
                    (C) is entered into only between persons that are 
                eligible contract participants as described in 
                subparagraph (A), (B)(ii), or (C) of section 1a(12) of 
                the Commodity Exchange Act, as in effect on the date of 
                the enactment of the Commodity Futures Modernization Act 
                of 2000, at the time the persons enter into the swap 
                agreement; and
                    (D) is an agreement, contract or transaction in an 
                excluded commodity (as defined in section 1a(13) of the 
                Commodity Exchange Act).

SEC. 403. EXCLUSION OF IDENTIFIED BANKING PRODUCTS COMMONLY OFFERED ON 
            OR BEFORE DECEMBER 5, 2000.

    No provision of the Commodity Exchange Act shall apply to, and the 
Commodity Futures Trading Commission shall not exercise regulatory 
authority with respect to, an identified banking product if--
            (1) an appropriate banking agency certifies that the product 
        has been commonly offered, entered into, or provided in the 
        United States by any bank on or before December 5, 2000, under 
        applicable banking law; and
            (2) the product was not prohibited by the Commodity Exchange 
        Act and not regulated by the Commodity Futures Trading 
        Commission as a contract of sale of a commodity for future 
        delivery (or an option on such a contract) or an option on a 
        commodity, on or before December 5, 2000.

[[Page 114 STAT. 2763A-459]]

SEC. 404. EXCLUSION OF CERTAIN IDENTIFIED BANKING PRODUCTS OFFERED BY 
            BANKS AFTER DECEMBER 5, 2000.

    No provision of the Commodity Exchange Act shall apply to, and the 
Commodity Futures Trading Commission shall not exercise regulatory 
authority with respect to, an identified banking product which had not 
been commonly offered, entered into, or provided in the United States by 
any bank on or before December 5, 2000, under applicable banking law 
if--
            (1) the product has no payment indexed to the value, level, 
        or rate of, and does not provide for the delivery of, any 
        commodity (as defined in section 1a(4) of the Commodity Exchange 
        Act); or
            (2) the product or commodity is otherwise excluded from the 
        Commodity Exchange Act.

SEC. 405. EXCLUSION OF CERTAIN OTHER IDENTIFIED BANKING PRODUCTS.

    (a) In General.--No provision of the Commodity Exchange Act shall 
apply to, and the Commodity Futures Trading Commission shall not 
exercise regulatory authority with respect to, a banking product if the 
product is a hybrid instrument that is predominantly a banking product 
under the predominance test set forth in subsection (b).
    (b) Predominance Test.--A hybrid instrument shall be considered to 
be predominantly a banking product for purposes of this section if--
            (1) the issuer of the hybrid instrument receives payment in 
        full of the purchase price of the hybrid instrument 
        substantially contemporaneously with delivery of the hybrid 
        instrument;
            (2) the purchaser or holder of the hybrid instrument is not 
        required to make under the terms of the instrument, or any 
        arrangement referred to in the instrument, any payment to the 
        issuer in addition to the purchase price referred to in 
        paragraph (1), whether as margin, settlement payment, or 
        otherwise during the life of the hybrid instrument or at 
        maturity;
            (3) the issuer of the hybrid instrument is not subject by 
        the terms of the instrument to mark-to-market margining 
        requirements; and
            (4) the hybrid instrument is not marketed as a contract of 
        sale of a commodity for future delivery (or option on such a 
        contract) subject to the Commodity Exchange Act.

    (c) Mark-to-Market Margining Requirement.--For purposes of 
subsection (b)(3), mark-to-market margining requirements shall not 
include the obligation of an issuer of a secured debt instrument to 
increase the amount of collateral held in pledge for the benefit of the 
purchaser of the secured debt instrument to secure the repayment 
obligations of the issuer under the secured debt instrument.

SEC. 406. ADMINISTRATION OF THE PREDOMINANCE TEST.

    (a) In General.--No provision of the Commodity Exchange Act shall 
apply to, and the Commodity Futures Trading Commission shall not 
regulate, a hybrid instrument, unless the Commission determines, by or 
under a rule issued in accordance with this section, that--

[[Page 114 STAT. 2763A-460]]

            (1) the action is necessary and appropriate in the public 
        interest;
            (2) the action is consistent with the Commodity Exchange Act 
        and the purposes of the Commodity Exchange Act; and
            (3) the hybrid instrument is not predominantly a banking 
        product under the predominance test set forth in section 405(b) 
        of this Act.

    (b) Consultation.--Before commencing a rulemaking or making a 
determination pursuant to a rule issued under this title, the Commodity 
Futures Trading Commission shall consult with and seek the concurrence 
of the Board of Governors of the Federal Reserve System concerning--
            (1) the nature of the hybrid instrument; and
            (2) the history, purpose, extent, and appropriateness of the 
        regulation of the hybrid instrument under the Commodity Exchange 
        Act and under appropriate banking laws.

    (c) Objection to Commission Regulation.--
            (1) Filing of petition for review.--The Board of Governors 
        of the Federal Reserve System may obtain review of any rule or 
        determination referred to in subsection (a) in the United States 
        Court of Appeals for the District of Columbia Circuit by filing 
        in the court, not later than 60 days after the date of 
        publication of the rule or determination, a written petition 
        requesting that the rule or determination be set aside. Any 
        proceeding to challenge any such rule or determination shall be 
        expedited by the court.
            (2) Transmittal of petition and record.--A copy of a 
        petition described in paragraph (1) shall be transmitted as soon 
        as possible by the Clerk of the court to an officer or employee 
        of the Commodity Futures Trading Commission designated for that 
        purpose. Upon receipt of the petition, the Commission shall file 
        with the court the rule or determination under review and any 
        documents referred to therein, and any other relevant materials 
        prescribed by the court.
            (3) Exclusive jurisdiction.--On the date of the filing of a 
        petition under paragraph (1), the court shall have jurisdiction, 
        which shall become exclusive on the filing of the materials set 
        forth in paragraph (2), to affirm and enforce or to set aside 
        the rule or determination at issue.
            (4) Standard of review.--The court shall determine to affirm 
        and enforce or set aside a rule or determination of the 
        Commodity Futures Trading Commission under this section, based 
        on the determination of the court as to whether--
                    (A) the subject product is predominantly a banking 
                product; and
                    (B) making the provision or provisions of the 
                Commodity Exchange Act at issue applicable to the 
                subject instrument is appropriate in light of the 
                history, purpose, and extent of regulation under such 
                Act, this title, and under the appropriate banking laws, 
                giving deference neither to the views of the Commodity 
                Futures Trading Commission nor the Board of Governors of 
                the Federal Reserve System.
            (5) Judicial stay.--The filing of a petition by the Board 
        pursuant to paragraph (1) shall operate as a judicial stay, 
        until the date on which the determination of the court is final 
        (including any appeal of the determination).

[[Page 114 STAT. 2763A-461]]

            (6) Other authority to challenge.--Any aggrieved party may 
        seek judicial review pursuant to section 6(c) of the Commodity 
        Exchange Act of a determination or rulemaking by the Commodity 
        Futures Trading Commission under this section.

SEC. 407. EXCLUSION OF COVERED SWAP AGREEMENTS.

    No provision of the Commodity Exchange Act (other than section 5b of 
such Act with respect to the clearing of covered swap agreements) shall 
apply to, and the Commodity Futures Trading Commission shall not 
exercise regulatory authority with respect to, a covered swap agreement 
offered, entered into, or provided by a bank.

SEC. 408. CONTRACT ENFORCEMENT.

    (a) Hybrid Instruments.--No hybrid instrument shall be void, 
voidable, or unenforceable, and no party to a hybrid instrument shall be 
entitled to rescind, or recover any payment made with respect to, a 
hybrid instrument under any provision of Federal or State law, based 
solely on the failure of the hybrid instrument to satisfy the 
predominance test set forth in section 405(b) of this Act or to comply 
with the terms or conditions of an exemption or exclusion from any 
provision of the Commodity Exchange Act or any regulation of the 
Commodity Futures Trading Commission.
    (b) Covered Swap Agreements.--No covered swap agreement shall be 
void, voidable, or unenforceable, and no party to a covered swap 
agreement shall be entitled to rescind, or recover any payment made with 
respect to, a covered swap agreement under any provision of Federal or 
State law, based solely on the failure of the covered swap agreement to 
comply with the terms or conditions of an exemption or exclusion from 
any provision of the Commodity Exchange Act or any regulation of the 
Commodity Futures Trading Commission.
    (c) Preemption.--This title shall supersede and preempt the 
application of any State or local law that prohibits or regulates gaming 
or the operation of bucket shops (other than antifraud provisions of 
general applicability) in the case of--
            (1) a hybrid instrument that is predominantly a banking 
        product; or
            (2) a covered swap agreement.

[[Page 114 STAT. 2763A-463]]

                          APPENDIX F--H.R. 5661

SECTION 1. SHORT TITLE; AMENDMENTS TO SOCIAL SECURITY ACT; REFERENCES TO 
            OTHER ACTS; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Medicare, Medicaid, 
and SCHIP Benefits Improvement and Protection Act of 2000''.
    (b) Amendments to Social Security Act.--Except as otherwise 
specifically provided, whenever in this Act an amendment is expressed in 
terms of an amendment to or repeal of a section or other provision, the 
reference shall be considered to be made to that section or other 
provision of the Social Security Act.
    (c) References to Other Acts.--In this Act:
            (1) Balanced budget act of 1997.--The term ``BBA'' means the 
        Balanced Budget Act of 1997 (Public Law 105-33; 111 Stat. 251).
            (2) Medicare, medicaid, and schip balanced budget refinement 
        act of 1999.--The term ``BBRA'' means the Medicare, Medicaid, 
        and SCHIP Balanced Budget Refinement Act of 1999 (Appendix F, 
        113 Stat. 1501A-321), as enacted into law by section 1000(a)(6) 
        of Public Law 106-113.

    (d) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; amendments to Social Security Act; references to 
           other Acts; table of contents.

               TITLE I--MEDICARE BENEFICIARY IMPROVEMENTS

                Subtitle A--Improved Preventive Benefits

Sec. 101. Coverage of biennial screening pap smear and pelvic exams.
Sec. 102. Coverage of screening for glaucoma.
Sec. 103. Coverage of screening colonoscopy for average risk 
           individuals.
Sec. 104. Modernization of screening mammography benefit.
Sec. 105. Coverage of medical nutrition therapy services for 
           beneficiaries with diabetes or a renal disease.

               Subtitle B--Other Beneficiary Improvements

Sec. 111. Acceleration of reduction of beneficiary copayment for 
           hospital outpatient department services.
Sec. 112. Preservation of coverage of drugs and biologicals under part B 
           of the medicare program.
Sec. 113. Elimination of time limitation on medicare benefits for 
           immunosuppressive drugs.
Sec. 114. Imposition of billing limits on drugs.
Sec. 115. Waiver of 24-month waiting period for medicare coverage of 
           individuals disabled with amyotrophic lateral sclerosis 
           (ALS).

             Subtitle C--Demonstration Projects and Studies

Sec. 121. Demonstration project for disease management for severely 
           chronically ill medicare beneficiaries.
Sec. 122. Cancer prevention and treatment demonstration for ethnic and 
           racial minorities.

[[Page 114 STAT. 2763A-464]]

Sec. 123. Study on medicare coverage of routine thyroid screening.
Sec. 124. MedPAC study on consumer coalitions.
Sec. 125. Study on limitation on State payment for medicare cost-sharing 
           affecting access to services for qualified medicare 
           beneficiaries.
Sec. 126. Studies on preventive interventions in primary care for older 
           Americans.
Sec. 127. MedPAC study and report on medicare coverage of cardiac and 
           pulmonary rehabilitation therapy services.
Sec. 128. Lifestyle modification program demonstration.

                TITLE II--RURAL HEALTH CARE IMPROVEMENTS

             Subtitle A--Critical Access Hospital Provisions

Sec. 201. Clarification of no beneficiary cost-sharing for clinical 
           diagnostic laboratory tests furnished by critical access 
           hospitals.
Sec. 202. Assistance with fee schedule payment for professional services 
           under all-inclusive rate.
Sec. 203. Exemption of critical access hospital swing beds from SNF PPS.
Sec. 204. Payment in critical access hospitals for emergency room on-
           call physicians.
Sec. 205. Treatment of ambulance services furnished by certain critical 
           access hospitals.
Sec. 206. GAO study on certain eligibility requirements for critical 
           access hospitals.

              Subtitle B--Other Rural Hospitals Provisions

Sec. 211. Treatment of rural disproportionate share hospitals.
Sec. 212. Option to base eligibility for medicare dependent, small rural 
           hospital program on discharges during two of the three most 
           recently audited cost reporting periods.
Sec. 213. Extension of option to use rebased target amounts to all sole 
           community hospitals.
Sec. 214. MedPAC analysis of impact of volume on per unit cost of rural 
           hospitals with psychiatric units.

                   Subtitle C--Other Rural Provisions

Sec. 221. Assistance for providers of ambulance services in rural areas.
Sec. 222. Payment for certain physician assistant services.
Sec. 223. Revision of medicare reimbursement for telehealth services.
Sec. 224. Expanding access to rural health clinics.
Sec. 225. MedPAC study on low-volume, isolated rural health care 
           providers.

                TITLE III--PROVISIONS RELATING TO PART A

                 Subtitle A--Inpatient Hospital Services

Sec. 301. Revision of acute care hospital payment update for 2001.
Sec. 302. Additional modification in transition for indirect medical 
           education (IME) percentage adjustment.
Sec. 303. Decrease in reductions for disproportionate share hospital 
           (DSH) payments.
Sec. 304. Wage index improvements.
Sec. 305. Payment for inpatient services of rehabilitation hospitals.
Sec. 306. Payment for inpatient services of psychiatric hospitals.
Sec. 307. Payment for inpatient services of long-term care hospitals.

 Subtitle B--Adjustments to PPS Payments for Skilled Nursing Facilities

Sec. 311. Elimination of reduction in skilled nursing facility (SNF) 
           market basket update in 2001.
Sec. 312. Increase in nursing component of PPS Federal rate.
Sec. 313. Application of SNF consolidated billing requirement limited to 
           part A covered stays.
Sec. 314. Adjustment of rehabilitation RUGs to correct anomaly in 
           payment rates.
Sec. 315. Establishment of process for geographic reclassification.

                        Subtitle C--Hospice Care

Sec. 321. Five percent increase in payment base.
Sec. 322. Clarification of physician certification.
Sec. 323. MedPAC report on access to, and use of, hospice benefit.

                      Subtitle D--Other Provisions

Sec. 331. Relief from medicare part A late enrollment penalty for group 
           buy-in for State and local retirees.

[[Page 114 STAT. 2763A-465]]

                 TITLE IV--PROVISIONS RELATING TO PART B

                Subtitle A--Hospital Outpatient Services

Sec. 401. Revision of hospital outpatient PPS payment update.
Sec. 402. Clarifying process and standards for determining eligibility 
           of devices for pass-through payments under hospital 
           outpatient PPS.
Sec. 403. Application of OPD PPS transitional corridor payments to 
           certain hospitals that did not submit a 1996 cost report.
Sec. 404. Application of rules for determining provider-based status for 
           certain entities.
Sec. 405. Treatment of children's hospitals under prospective payment 
           system.
Sec. 406. Inclusion of temperature monitored cryoablation in 
           transitional pass-through for certain medical devices, drugs, 
           and biologicals under OPD PPS.

         Subtitle B--Provisions Relating to Physicians' Services

Sec. 411. GAO studies relating to physicians' services.
Sec. 412. Physician group practice demonstration.
Sec. 413. Study on enrollment procedures for groups that retain 
           independent contractor physicians.

                       Subtitle C--Other Services

Sec. 421. One-year extension of moratorium on therapy caps; report on 
           standards for supervision of physical therapy assistants.
Sec. 422. Update in renal dialysis composite rate.
Sec. 423. Payment for ambulance services.
Sec. 424. Ambulatory surgical centers.
Sec. 425. Full update for durable medical equipment.
Sec. 426. Full update for orthotics and prosthetics.
Sec. 427. Establishment of special payment provisions and requirements 
           for prosthetics and certain custom-fabricated orthotic items.
Sec. 428. Replacement of prosthetic devices and parts.
Sec. 429. Revised part B payment for drugs and biologicals and related 
           services.
Sec. 430. Contrast enhanced diagnostic procedures under hospital 
           prospective payment system.
Sec. 431. Qualifications for community mental health centers.
Sec. 432. Payment of physician and nonphysician services in certain 
           Indian providers.
Sec. 433. GAO study on coverage of surgical first assisting services of 
           certified registered nurse first assistants.
Sec. 434. MedPAC study and report on medicare reimbursement for services 
           provided by certain providers.
Sec. 435. MedPAC study and report on medicare coverage of services 
           provided by certain nonphysician providers.
Sec. 436. GAO study and report on the costs of emergency and medical 
           transportation services.
Sec. 437. GAO studies and reports on medicare payments.
Sec. 438. MedPAC study on access to outpatient pain management services.

              TITLE V--PROVISIONS RELATING TO PARTS A AND B

                    Subtitle A--Home Health Services

Sec. 501. One-year additional delay in application of 15 percent 
           reduction on payment limits for home health services.
Sec. 502. Restoration of full home health market basket update for home 
           health services for fiscal year 2001.
Sec. 503. Temporary two-month periodic interim payment.
Sec. 504. Use of telehealth in delivery of home health services.
Sec. 505. Study on costs to home health agencies of purchasing 
           nonroutine medical supplies.
Sec. 506. Treatment of branch offices; GAO study on supervision of home 
           health care provided in isolated rural areas.
Sec. 507. Clarification of the homebound definition under the medicare 
           home health benefit.
Sec. 508. Temporary increase for home health services furnished in a 
           rural area.

              Subtitle B--Direct Graduate Medical Education

Sec. 511. Increase in floor for direct graduate medical education 
           payments.
Sec. 512. Change in distribution formula for Medicare+Choice-related 
           nursing and allied health education costs.

      Subtitle C--Changes in Medicare Coverage and Appeals Process

Sec. 521. Revisions to medicare appeals process.

[[Page 114 STAT. 2763A-466]]

Sec. 522. Revisions to medicare coverage process.

            Subtitle D--Improving Access to New Technologies

Sec. 531. Reimbursement improvements for new clinical laboratory tests 
           and durable medical equipment.
Sec. 532. Retention of HCPCS level III codes.
Sec. 533. Recognition of new medical technologies under inpatient 
           hospital PPS.

                      Subtitle E--Other Provisions

Sec. 541. Increase in reimbursement for bad debt.
Sec. 542. Treatment of certain physician pathology services under 
           medicare.
Sec. 543. Extension of advisory opinion authority.
Sec. 544. Change in annual MedPAC reporting.
Sec. 545. Development of patient assessment instruments.
Sec. 546. GAO report on impact of the Emergency Medical Treatment and 
           Active Labor Act (EMTALA) on hospital emergency departments.
Sec. 547. Clarification of application of temporary payment increases 
           for 2001.

 TITLE VI--PROVISIONS RELATING TO PART C (MEDICARE+CHOICE PROGRAM) AND 
                 OTHER MEDICARE MANAGED CARE PROVISIONS

               Subtitle A--Medicare+Choice Payment Reforms

Sec. 601. Increase in minimum payment amount.
Sec. 602. Increase in minimum percentage increase.
Sec. 603. Phase-in of risk adjustment.
Sec. 604. Transition to revised Medicare+Choice payment rates.
Sec. 605. Revision of payment rates for ESRD patients enrolled in 
           Medicare+Choice plans.
Sec. 606. Permitting premium reductions as additional benefits under 
           Medicare+Choice plans.
Sec. 607. Full implementation of risk adjustment for congestive heart 
           failure enrollees for 2001.
Sec. 608. Expansion of application of Medicare+Choice new entry bonus.
Sec. 609. Report on inclusion of certain costs of the Department of 
           Veterans Affairs and military facility services in 
           calculating Medicare+Choice payment rates.

                Subtitle B--Other Medicare+Choice Reforms

Sec. 611. Payment of additional amounts for new benefits covered during 
           a contract term.
Sec. 612. Restriction on implementation of significant new regulatory 
           requirements midyear.
Sec. 613. Timely approval of marketing material that follows model 
           marketing language.
Sec. 614. Avoiding duplicative regulation.
Sec. 615. Election of uniform local coverage policy for Medicare+Choice 
           plan covering multiple localities.
Sec. 616. Eliminating health disparities in Medicare+Choice program.
Sec. 617. Medicare+Choice program compatibility with employer or union 
           group health plans.
Sec. 618. Special medigap enrollment antidiscrimination provision for 
           certain beneficiaries.
Sec. 619. Restoring effective date of elections and changes of elections 
           of Medicare+Choice plans.
Sec. 620. Permitting ESRD beneficiaries to enroll in another 
           Medicare+Choice plan if the plan in which they are enrolled 
           is terminated.
Sec. 621. Providing choice for skilled nursing facility services under 
           the Medicare+Choice program.
Sec. 622. Providing for accountability of Medicare+Choice plans.
Sec. 623. Increased civil money penalty for Medicare+Choice 
           organizations that terminate contracts mid-year.

                 Subtitle C--Other Managed Care Reforms

Sec. 631. One-year extension of social health maintenance organization 
           (SHMO) demonstration project.
Sec. 632. Revised terms and conditions for extension of medicare 
           community nursing organization (CNO) demonstration project.
Sec. 633. Extension of medicare municipal health services demonstration 
           projects.
Sec. 634. Service area expansion for medicare cost contracts during 
           transition period.

[[Page 114 STAT. 2763A-467]]

                           TITLE VII--MEDICAID

Sec. 701. DSH payments.
Sec. 702. New prospective payment system for Federally-qualified health 
           centers and rural health clinics.
Sec. 703. Streamlined approval of continued State-wide section 1115 
           medicaid waivers.
Sec. 704. Medicaid county-organized health systems.
Sec. 705. Deadline for issuance of final regulation relating to medicaid 
           upper payment limits.
Sec. 706. Alaska FMAP.
Sec. 707. One-year extension of welfare-to-work transition.
Sec. 708. Additional entities qualified to determine medicaid 
           presumptive eligibility for low-income children.
Sec. 709. Development of uniform QMB/SLMB application form.
Sec. 710. Technical corrections.

          TITLE VIII--STATE CHILDREN'S HEALTH INSURANCE PROGRAM

Sec. 801. Special rule for redistribution and availability of unused 
           fiscal year 1998 and 1999 SCHIP allotments.
Sec. 802. Authority to pay medicaid expansion SCHIP costs from title XXI 
           appropriation.
Sec. 803. Application of medicaid child presumptive eligibility 
           provisions.

                       TITLE IX--OTHER PROVISIONS

                        Subtitle A--PACE Program

Sec. 901. Extension of transition for current waivers.
Sec. 902. Continuing of certain operating arrangements permitted.
Sec. 903. Flexibility in exercising waiver authority.

   Subtitle B--Outreach to Eligible Low-Income Medicare Beneficiaries

Sec. 911. Outreach on availability of medicare cost-sharing assistance 
           to eligible low-income medicare beneficiaries.

            Subtitle C--Maternal and Child Health Block Grant

Sec. 921. Increase in authorization of appropriations for the maternal 
           and child health services block grant.

                          Subtitle D--Diabetes

Sec. 931. Increase in appropriations for special diabetes programs for 
           type I diabetes and Indians.
Sec. 932. Appropriations for Ricky Ray Hemophilia Relief Fund.

          Subtitle E--Information on Nursing Facility Staffing

Sec. 941. Posting of information on nursing facility staffing.

    Subtitle F--Adjustment of Multiemployer Plan Benefits Guaranteed

Sec. 951. Multiemployer plan benefits guaranteed.

               TITLE I--MEDICARE BENEFICIARY IMPROVEMENTS

                Subtitle A--Improved Preventive Benefits

SEC. 101. COVERAGE OF BIENNIAL SCREENING PAP SMEAR AND PELVIC EXAMS.

    (a) In General.--
            (1) Biennial screening pap smear.--Section 1861(nn)(1) (42 
        U.S.C. 1395x(nn)(1)) is amended by striking ``3 years'' and 
        inserting ``2 years''.
            (2) Biennial screening pelvic exam.--Section 1861(nn)(2) (42 
        U.S.C. 1395x(nn)(2)) is amended by striking ``3 years'' and 
        inserting ``2 years''.

[[Page 114 STAT. 2763A-468]]

    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to items and services furnished on or after July 1, 2001.

SEC. 102. COVERAGE OF SCREENING FOR GLAUCOMA.

    (a) Coverage.--Section 1861(s)(2) (42 U.S.C. 1395x(s)(2)) is 
amended--
            (1) by striking ``and'' at the end of subparagraph (S);
            (2) by inserting ``and'' at the end of subparagraph (T); and
            (3) by adding at the end the following:
            ``(U) screening for glaucoma (as defined in subsection (uu)) 
        for individuals determined to be at high risk for glaucoma, 
        individuals with a family history of glaucoma and individuals 
        with diabetes;''.

    (b) Services Described.--Section 1861 (42 U.S.C. 1395x) is amended 
by adding at the end the following new subsection:

                        ``Screening for Glaucoma

    ``(uu) The term `screening for glaucoma' means a dilated eye 
examination with an intraocular pressure measurement, and a direct 
ophthalmoscopy or a slit-lamp biomicroscopic examination for the early 
detection of glaucoma which is furnished by or under the direct 
supervision of an optometrist or ophthalmologist who is legally 
authorized to furnish such services under State law (or the State 
regulatory mechanism provided by State law) of the State in which the 
services are furnished, as would otherwise be covered if furnished by a 
physician or as an incident to a physician's professional service, if 
the individual involved has not had such an examination in the preceding 
year.''.
    (c) Conforming Amendment.--Section 1862(a)(1)(F) (42 U.S.C. 
1395y(a)(1)(F)) is amended--
            (1) by striking ``and,''; and
            (2) by adding at the end the following: ``and, in the case 
        of screening for glaucoma, which is performed more frequently 
        than is provided under section 1861(uu),''.

    (d) Effective Date.--The amendments made by this section shall apply 
to services furnished on or after January 1, 2002.

SEC. 103. COVERAGE OF SCREENING COLONOSCOPY FOR AVERAGE RISK 
            INDIVIDUALS.

    (a) In General.--Section 1861(pp) (42 U.S.C. 1395x(pp)) is amended--
            (1) in paragraph (1)(C), by striking ``In the case of an 
        individual at high risk for colorectal cancer, screening 
        colonoscopy'' and inserting ``Screening colonoscopy''; and
            (2) in paragraph (2), by striking ``In paragraph (1)(C), 
        an'' and inserting ``An''.

    (b) Frequency Limits for Screening Colonoscopy.--Section 1834(d) (42 
U.S.C. 1395m(d)) is amended--
            (1) in paragraph (2)(E)(ii), by inserting before the period 
        at the end the following: ``or, in the case of an individual who 
        is not at high risk for colorectal cancer, if the procedure is 
        performed within the 119 months after a previous screening 
        colonoscopy''; and
            (2) in paragraph (3)--

[[Page 114 STAT. 2763A-469]]

                    (A) in the heading by striking ``for individuals at 
                high risk for colorectal cancer'';
                    (B) in subparagraph (A), by striking ``for 
                individuals at high risk for colorectal cancer (as 
                defined in section 1861(pp)(2))''; and
                    (C) in subparagraph (E), by inserting before the 
                period at the end the following: ``or for other 
                individuals if the procedure is performed within the 119 
                months after a previous screening colonoscopy or within 
                47 months after a previous screening flexible 
                sigmoidoscopy''.

    (c) Effective Date.--The amendments made by this section shall apply 
to colorectal cancer screening services provided on or after July 1, 
2001.

SEC. 104. MODERNIZATION OF SCREENING MAMMOGRAPHY BENEFIT.

    (a) Inclusion in Physician Fee Schedule.--Section 1848( j)(3) (42 
U.S.C. 1395w-4( j)(3)) is amended by inserting ``(13),'' after ``(4),''.
    (b) Conforming Amendment.--Section 1834(c) (42 U.S.C. 1395m(c)) is 
amended to read as follows:
    ``(c) Payment and Standards for Screening Mammography.--
            ``(1) In general.--With respect to expenses incurred for 
        screening mammography (as defined in section 1861(jj)), payment 
        may be made only--
                    ``(A) for screening mammography conducted consistent 
                with the frequency permitted under paragraph (2); and
                    ``(B) if the screening mammography is conducted by a 
                facility that has a certificate (or provisional 
                certificate) issued under section 354 of the Public 
                Health Service Act.
            ``(2) Frequency covered.--
                    ``(A) In general.--Subject to revision by the 
                Secretary under subparagraph (B)--
                          ``(i) no payment may be made under this part 
                      for screening mammography performed on a woman 
                      under 35 years of age;
                          ``(ii) payment may be made under this part for 
                      only one screening mammography performed on a 
                      woman over 34 years of age, but under 40 years of 
                      age; and
                          ``(iii) in the case of a woman over 39 years 
                      of age, payment may not be made under this part 
                      for screening mammography performed within 11 
                      months following the month in which a previous 
                      screening mammography was performed.
                    ``(B) Revision of frequency.--
                          ``(i) Review.--The Secretary, in consultation 
                      with the Director of the National Cancer 
                      Institute, shall review periodically the 
                      appropriate frequency for performing screening 
                      mammography, based on age and such other factors 
                      as the Secretary believes to be pertinent.
                          ``(ii) Revision of frequency.--The Secretary, 
                      taking into consideration the review made under 
                      clause (i), may revise from time to time the 
                      frequency with which screening mammography may be 
                      paid for under this subsection.''.

[[Page 114 STAT. 2763A-470]]

    (c) Effective Date.--The amendments made by subsections (a) and (b) 
shall apply with respect to screening mammographies furnished on or 
after January 1, 2002.
    (d) Payment for New Technologies.--
            (1) Tests furnished in 2001.--
                    (A) Screening.--For a screening mammography (as 
                defined in section 1861(jj) of the Social Security Act 
                (42 U.S.C. 1395x(jj))) furnished during the period 
                beginning on April 1, 2001, and ending on December 31, 
                2001, that uses a new technology, payment for such 
                screening mammography shall be made as follows:
                          (i) In the case of a technology which directly 
                      takes a digital image (without involving film), in 
                      an amount equal to 150 percent of the amount of 
                      payment under section 1848 of such Act (42 U.S.C. 
                      1395w-4) for a bilateral diagnostic mammography 
                      (under HCPCS code 76091) for such year.
                          (ii) In the case of a technology which allows 
                      conversion of a standard film mammogram into a 
                      digital image and subsequently analyzes such 
                      resulting image with software to identify possible 
                      problem areas, in an amount equal to the limit 
                      that would otherwise be applied under section 
                      1834(c)(3) of such Act (42 U.S.C. 1395m(c)(3)) for 
                      2001, increased by $15.
                    (B) Bilateral diagnostic mammography.--For a 
                bilateral diagnostic mammography furnished during the 
                period beginning on April 1, 2001, and ending on 
                December 31, 2001, that uses a new technology described 
                in subparagraph (A), payment for such mammography shall 
                be the amount of payment provided for under such 
                subparagraph.
                    (C) Allocation of amounts.--The Secretary shall 
                provide for an appropriate allocation of the amounts 
                under subparagraphs (A) and (B) between the professional 
                and technical components.
                    (D) Implementation of provision.--The Secretary of 
                Health and Human Services may implement the provisions 
                of this paragraph by program memorandum or otherwise.
            (2) Consideration of new hcpcs code for new technologies 
        after 2001.--The Secretary shall determine, for such 
        mammographies performed after 2001, whether the assignment of a 
        new HCPCS code is appropriate for mammography that uses a new 
        technology. If the Secretary determines that a new code is 
        appropriate for such mammography, the Secretary shall provide 
        for such new code for such tests furnished after 2001.
            (3) New technology described.--For purposes of this 
        subsection, a new technology with respect to a mammography is an 
        advance in technology with respect to the test or equipment that 
        results in the following:
                    (A) A significant increase or decrease in the 
                resources used in the test or in the manufacture of the 
                equipment.
                    (B) A significant improvement in the performance of 
                the test or equipment.
                    (C) A significant advance in medical technology that 
                is expected to significantly improve the treatment of 
                medicare beneficiaries.

[[Page 114 STAT. 2763A-471]]

            (4) HCPCS code defined.--The term ``HCPCS code'' means a 
        code under the Health Care Financing Administration Common 
        Procedure Coding System (HCPCS).

SEC. 105. COVERAGE OF MEDICAL NUTRITION THERAPY SERVICES FOR 
            BENEFICIARIES WITH DIABETES OR A RENAL DISEASE.

    (a) Coverage.--Section 1861(s)(2) (42 U.S.C. 1395x(s)(2)), as 
amended by section 102(a), is amended--
            (1) in subparagraph (T), by striking ``and'' at the end;
            (2) in subparagraph (U), by inserting ``and'' at the end; 
        and
            (3) by adding at the end the following new subparagraph:
            ``(V) medical nutrition therapy services (as defined in 
        subsection (vv)(1)) in the case of a beneficiary with diabetes 
        or a renal disease who--
                    ``(i) has not received diabetes outpatient self-
                management training services within a time period 
                determined by the Secretary;
                    ``(ii) is not receiving maintenance dialysis for 
                which payment is made under section 1881; and
                    ``(iii) meets such other criteria determined by the 
                Secretary after consideration of protocols established 
                by dietitian or nutrition professional organizations;''.

    (b) Services Described.--Section 1861 (42 U.S.C. 1395x), as amended 
by section 102(b), is amended by adding at the end the following:

``Medical Nutrition Therapy Services; Registered Dietitian or Nutrition 
                              Professional

    ``(vv)(1) The term `medical nutrition therapy services' means 
nutritional diagnostic, therapy, and counseling services for the purpose 
of disease management which are furnished by a registered dietitian or 
nutrition professional (as defined in paragraph (2)) pursuant to a 
referral by a physician (as defined in subsection (r)(1)).
    ``(2) Subject to paragraph (3), the term `registered dietitian or 
nutrition professional' means an individual who--
            ``(A) holds a baccalaureate or higher degree granted by a 
        regionally accredited college or university in the United States 
        (or an equivalent foreign degree) with completion of the 
        academic requirements of a program in nutrition or dietetics, as 
        accredited by an appropriate national accreditation organization 
        recognized by the Secretary for this purpose;
            ``(B) has completed at least 900 hours of supervised 
        dietetics practice under the supervision of a registered 
        dietitian or nutrition professional; and
            ``(C)(i) is licensed or certified as a dietitian or 
        nutrition professional by the State in which the services are 
        performed; or
            ``(ii) in the case of an individual in a State that does not 
        provide for such licensure or certification, meets such other 
        criteria as the Secretary establishes.

    ``(3) Subparagraphs (A) and (B) of paragraph (2) shall not apply in 
the case of an individual who, as of the date of the enactment of this 
subsection, is licensed or certified as a dietitian

[[Page 114 STAT. 2763A-472]]

or nutrition professional by the State in which medical nutrition 
therapy services are performed.''.
    (c) Payment.--Section 1833(a)(1) (42 U.S.C. 1395l(a)(1)) is 
amended--
            (1) by striking ``and'' before ``(S)''; and
            (2) by inserting before the semicolon at the end the 
        following: ``, and (T) with respect to medical nutrition therapy 
        services (as defined in section 1861(vv)), the amount paid shall 
        be 80 percent of the lesser of the actual charge for the 
        services or 85 percent of the amount determined under the fee 
        schedule established under section 1848(b) for the same services 
        if furnished by a physician''.

    (d) Application of Limits on Billing.--Section 1842(b)(18)(C) (42 
U.S.C. 1395u(b)(18)(C)) is amended by adding at the end the following 
new clause:
            ``(vi) A registered dietitian or nutrition professional.''.

    (e) Effective Date.--The amendments made by this section shall apply 
to services furnished on or after January 1, 2002.
    (f ) Study.--Not later than July 1, 2003, the Secretary of Health 
and Human Services shall submit to Congress a report that contains 
recommendations with respect to the expansion to other medicare 
beneficiary populations of the medical nutrition therapy services 
benefit (furnished under the amendments made by this section).

               Subtitle B--Other Beneficiary Improvements

SEC. 111. ACCELERATION OF REDUCTION OF BENEFICIARY COPAYMENT FOR 
            HOSPITAL OUTPATIENT DEPARTMENT SERVICES.

    (a) Reducing the Upper Limit on Beneficiary Copayment.--
            (1) In general.--Section 1833(t)(8)(C) (42 U.S.C. 
        1395l(t)(8)(C)) is amended to read as follows:
                    ``(C) Limitation on copayment amount.--
                          ``(i) To inpatient hospital deductible 
                      amount.--In no case shall the copayment amount for 
                      a procedure performed in a year exceed the amount 
                      of the inpatient hospital deductible established 
                      under section 1813(b) for that year.
                          ``(ii) To specified percentage.--The Secretary 
                      shall reduce the national unadjusted copayment 
                      amount for a covered OPD service (or group of such 
                      services) furnished in a year in a manner so that 
                      the effective copayment rate (determined on a 
                      national unadjusted basis) for that service in the 
                      year does not exceed the following percentage:
                                    ``(I) For procedures performed in 
                                2001, on or after April 1, 2001, 57 
                                percent.
                                    ``(II) For procedures performed in 
                                2002 or 2003, 55 percent.
                                    ``(III) For procedures performed in 
                                2004, 50 percent.
                                    ``(IV) For procedures performed in 
                                2005, 45 percent.
                                    ``(V) For procedures performed in 
                                2006 and thereafter, 40 percent.''.

[[Page 114 STAT. 2763A-473]]

            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply with respect to services furnished on or after April 
        1, 2001.

    (b) Construction Regarding Limiting Increases in Cost-Sharing.--
Nothing in this Act or the Social Security Act shall be construed as 
preventing a hospital from waiving the amount of any coinsurance for 
outpatient hospital services under the medicare program under title 
XVIII of the Social Security Act that may have been increased as a 
result of the implementation of the prospective payment system under 
section 1833(t) of the Social Security Act (42 U.S.C. 1395l(t)).
    (c) GAO Study of Reduction in Medigap Premium Levels Resulting From 
Reductions in Coinsurance.--The Comptroller General of the United States 
shall work, in concert with the National Association of Insurance 
Commissioners, to evaluate the extent to which the premium levels for 
medicare supplemental policies reflect the reductions in coinsurance 
resulting from the amendment made by subsection (a). Not later than 
April 1, 2004, the Comptroller General shall submit to Congress a report 
on such evaluation and the extent to which the reductions in beneficiary 
coinsurance effected by such amendment have resulted in actual savings 
to medicare beneficiaries.

SEC. 112. PRESERVATION OF COVERAGE OF DRUGS AND BIOLOGICALS UNDER PART B 
            OF THE MEDICARE PROGRAM.

    (a) In General.--Section 1861(s)(2) (42 U.S.C. 1395x(s)(2)) is 
amended, in each of subparagraphs (A) and (B), by striking ``(including 
drugs and biologicals which cannot, as determined in accordance with 
regulations, be self-administered)'' and inserting ``(including drugs 
and biologicals which are not usually self-administered by the 
patient)''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to drugs and biologicals administered on or after the date of the 
enactment of this Act.

SEC. 113. ELIMINATION OF TIME LIMITATION ON MEDICARE BENEFITS FOR 
            IMMUNOSUPPRESSIVE DRUGS.

    (a) In General.--Section 1861(s)(2)(J) (42 U.S.C. 1395x(s)(2)(J)) is 
amended by striking ``, but only'' and all that follows up to the 
semicolon at the end.
    (b) Conforming Amendments.--
            (1) Extended coverage.--Section 1832 (42 U.S.C. 1395k) is 
        amended--
                    (A) by striking subsection (b); and
                    (B) by redesignating subsection (c) as subsection 
                (b).
            (2) Pass-through; report.--Section 227 of BBRA is amended by 
        striking subsection (d).

    (c) Effective Date.--The amendment made by subsection (a) shall 
apply to drugs furnished on or after the date of the enactment of this 
Act.

SEC. 114. IMPOSITION OF BILLING LIMITS ON DRUGS.

    (a) In General.--Section 1842(o) (42 U.S.C. 1395u(o)) is amended by 
adding at the end the following new paragraph:
    ``(3)(A) Payment for a charge for any drug or biological for which 
payment may be made under this part may be made only on an assignment-
related basis.

[[Page 114 STAT. 2763A-474]]

    ``(B) The provisions of subsection (b)(18)(B) shall apply to charges 
for such drugs or biologicals in the same manner as they apply to 
services furnished by a practitioner described in subsection 
(b)(18)(C).''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to items furnished on or after January 1, 2001.

SEC. 115. WAIVER OF 24-MONTH WAITING PERIOD FOR MEDICARE COVERAGE OF 
            INDIVIDUALS DISABLED WITH AMYOTROPHIC LATERAL SCLEROSIS 
            (ALS).

    (a) In General.--Section 226 (42 U.S.C. 426) is amended--
            (1) by redesignating subsection (h) as subsection ( j) and 
        by moving such subsection to the end of the section; and
            (2) by inserting after subsection (g) the following new 
        subsection:

    ``(h) For purposes of applying this section in the case of an 
individual medically determined to have amyotrophic lateral sclerosis 
(ALS), the following special rules apply:
            ``(1) Subsection (b) shall be applied as if there were no 
        requirement for any entitlement to benefits, or status, for a 
        period longer than 1 month.
            ``(2) The entitlement under such subsection shall begin with 
        the first month (rather than twenty-fifth month) of entitlement 
        or status.
            ``(3) Subsection (f ) shall not be applied.''.

    (b) Conforming Amendment.--Section 1837 (42 U.S.C. 1395p) is amended 
by adding at the end the following new subsection:
    ``( j) In applying this section in the case of an individual who is 
entitled to benefits under part A pursuant to the operation of section 
226(h), the following special rules apply:
            ``(1) The initial enrollment period under subsection (d) 
        shall begin on the first day of the first month in which the 
        individual satisfies the requirement of section 1836(1).
            ``(2) In applying subsection (g)(1), the initial enrollment 
        period shall begin on the first day of the first month of 
        entitlement to disability insurance benefits referred to in such 
        subsection.''.

    (c) Effective Date.--The amendments made by this section shall apply 
to benefits for months beginning July 1, 2001.

             Subtitle C--Demonstration Projects and Studies

SEC. 121. DEMONSTRATION PROJECT FOR DISEASE MANAGEMENT FOR SEVERELY 
            CHRONICALLY ILL MEDICARE BENEFICIARIES.

    (a) In General.--The Secretary of Health and Human Services shall 
conduct a demonstration project under this section (in this section 
referred to as the ``project'') to demonstrate the impact on costs and 
health outcomes of applying disease management to medicare beneficiaries 
with diagnosed, advanced-stage congestive heart failure, diabetes, or 
coronary heart disease. In no case may the number of participants in the 
project exceed 30,000 at any time.
    (b) Voluntary Participation.--

[[Page 114 STAT. 2763A-475]]

            (1) Eligibility.--Medicare beneficiaries are eligible to 
        participate in the project only if--
                    (A) they meet specific medical criteria 
                demonstrating the appropriate diagnosis and the advanced 
                nature of their disease;
                    (B) their physicians approve of participation in the 
                project; and
                    (C) they are not enrolled in a Medicare+Choice plan.
            (2) Benefits.--A beneficiary who is enrolled in the project 
        shall be eligible--
                    (A) for disease management services related to their 
                chronic health condition; and
                    (B) for payment for all costs for prescription drugs 
                without regard to whether or not they relate to the 
                chronic health condition, except that the project may 
                provide for modest cost-sharing with respect to 
                prescription drug coverage.

    (c) Contracts With Disease Management Organizations.--
            (1) In general.--The Secretary of Health and Human Services 
        shall carry out the project through contracts with up to three 
        disease management organizations. The Secretary shall not enter 
        into such a contract with an organization unless the 
        organization demonstrates that it can produce improved health 
        outcomes and reduce aggregate medicare expenditures consistent 
        with paragraph (2).
            (2) Contract provisions.--Under such contracts--
                    (A) such an organization shall be required to 
                provide for prescription drug coverage described in 
                subsection (b)(2)(B);
                    (B) such an organization shall be paid a fee 
                negotiated and established by the Secretary in a manner 
                so that (taking into account savings in expenditures 
                under parts A and B of the medicare program under title 
                XVIII of the Social Security Act) there will be a net 
                reduction in expenditures under the medicare program as 
                a result of the project; and
                    (C) such an organization shall guarantee, through an 
                appropriate arrangement with a reinsurance company or 
                otherwise, the net reduction in expenditures described 
                in subparagraph (B).
            (3) Payments.--Payments to such organizations shall be made 
        in appropriate proportion from the Trust Funds established under 
        title XVIII of the Social Security Act.

    (d) Application of Medigap Protections to Demonstration Project 
Enrollees.--(1) Subject to paragraph (2), the provisions of section 
1882(s)(3) (other than clauses (i) through (iv) of subparagraph (B)) and 
1882(s)(4) of the Social Security Act shall apply to enrollment (and 
termination of enrollment) in the demonstration project under this 
section, in the same manner as they apply to enrollment (and termination 
of enrollment) with a Medicare+Choice organization in a Medicare+Choice 
plan.
    (2) In applying paragraph (1)--
            (A) any reference in clause (v) or (vi) of section 
        1882(s)(3)(B) of such Act to 12 months is deemed a reference to 
        the period of the demonstration project; and

[[Page 114 STAT. 2763A-476]]

            (B) the notification required under section 1882(s)(3)(D) of 
        such Act shall be provided in a manner specified by the 
        Secretary of Health and Human Services.

    (e) Duration.--The project shall last for not longer than 3 years.
    (f ) Waiver.--The Secretary of Health and Human Services shall waive 
such provisions of title XVIII of the Social Security Act as may be 
necessary to provide for payment for services under the project in 
accordance with subsection (c)(3).
    (g) Report.--The Secretary of Health and Human Services shall submit 
to Congress an interim report on the project not later than 2 years 
after the date it is first implemented and a final report on the project 
not later than 6 months after the date of its completion. Such reports 
shall include information on the impact of the project on costs and 
health outcomes and recommendations on the cost-effectiveness of 
extending or expanding the project.

SEC. 122. CANCER PREVENTION AND TREATMENT DEMONSTRATION FOR ETHNIC AND 
            RACIAL MINORITIES.

    (a) Demonstration.--
            (1) In general.--The Secretary of Health and Human Services 
        (in this section referred to as the ``Secretary'') shall conduct 
        demonstration projects (in this section referred to as 
        ``demonstration projects'') for the purpose of developing models 
        and evaluating methods that--
                    (A) improve the quality of items and services 
                provided to target individuals in order to facilitate 
                reduced disparities in early detection and treatment of 
                cancer;
                    (B) improve clinical outcomes, satisfaction, quality 
                of life, and appropriate use of medicare-covered 
                services and referral patterns among those target 
                individuals with cancer;
                    (C) eliminate disparities in the rate of preventive 
                cancer screening measures, such as pap smears and 
                prostate cancer screenings, among target individuals; 
                and
                    (D) promote collaboration with community-based 
                organizations to ensure cultural competency of health 
                care professionals and linguistic access for persons 
                with limited English proficiency.
            (2) Target individual defined.--In this section, the term 
        ``target individual'' means an individual of a racial and ethnic 
        minority group, as defined by section 1707 of the Public Health 
        Service Act, who is entitled to benefits under part A, and 
        enrolled under part B, of title XVIII of the Social Security 
        Act.

    (b) Program Design.--
            (1) Initial design.--Not later than 1 year after the date of 
        the enactment of this Act, the Secretary shall evaluate best 
        practices in the private sector, community programs, and 
        academic research of methods that reduce disparities among 
        individuals of racial and ethnic minority groups in the 
        prevention and treatment of cancer and shall design the 
        demonstration projects based on such evaluation.
            (2) Number and project areas.--Not later than 2 years after 
        the date of the enactment of this Act, the Secretary shall 
        implement at least nine demonstration projects, including the 
        following:

[[Page 114 STAT. 2763A-477]]

                    (A) Two projects for each of the four following 
                major racial and ethnic minority groups:
                          (i) American Indians, including Alaska 
                      Natives, Eskimos, and Aleuts.
                          (ii) Asian Americans and Pacific Islanders.
                          (iii) Blacks.
                          (iv) Hispanics.
                The two projects must target different ethnic 
                subpopulations.
                    (B) One project within the Pacific Islands.
                    (C) At least one project each in a rural area and 
                inner-city area.
            (3) Expansion of projects; implementation of demonstration 
        project results.--If the initial report under subsection (c) 
        contains an evaluation that demonstration projects--
                    (A) reduce expenditures under the medicare program 
                under title XVIII of the Social Security Act; or
                    (B) do not increase expenditures under the medicare 
                program and reduce racial and ethnic health disparities 
                in the quality of health care services provided to 
                target individuals and increase satisfaction of 
                beneficiaries and health care providers;
        the Secretary shall continue the existing demonstration projects 
        and may expand the number of demonstration projects.

    (c) Report to Congress.--
            (1) In general.--Not later than 2 years after the date the 
        Secretary implements the initial demonstration projects, and 
        biannually thereafter, the Secretary shall submit to Congress a 
        report regarding the demonstration projects.
            (2) Contents of report.--Each report under paragraph (1) 
        shall include the following:
                    (A) A description of the demonstration projects.
                    (B) An evaluation of--
                          (i) the cost-effectiveness of the 
                      demonstration projects;
                          (ii) the quality of the health care services 
                      provided to target individuals under the 
                      demonstration projects; and
                          (iii) beneficiary and health care provider 
                      satisfaction under the demonstration projects.
                    (C) Any other information regarding the 
                demonstration projects that the Secretary determines to 
                be appropriate.

    (d) Waiver Authority.--The Secretary shall waive compliance with the 
requirements of title XVIII of the Social Security Act to such extent 
and for such period as the Secretary determines is necessary to conduct 
demonstration projects.
    (e) Funding.--
            (1) Demonstration projects.--
                    (A) State projects.--Except as provided in 
                subparagraph (B), the Secretary shall provide for the 
                transfer from the Federal Hospital Insurance Trust Fund 
                and the Federal Supplementary Insurance Trust Fund under 
                title XVIII of the Social Security Act, in such 
                proportions as the Secretary determines to be 
                appropriate, of such funds as are necessary for the 
                costs of carrying out the demonstration projects.

[[Page 114 STAT. 2763A-478]]

                    (B) Territory projects.--In the case of a 
                demonstration project described in subsection (b)(2)(B), 
                amounts shall be available only as provided in any 
                Federal law making appropriations for the territories.
            (2) Limitation.--In conducting demonstration projects, the 
        Secretary shall ensure that the aggregate payments made by the 
        Secretary do not exceed the sum of the amount which the 
        Secretary would have paid under the program for the prevention 
        and treatment of cancer if the demonstration projects were not 
        implemented, plus $25,000,000.

SEC. 123. STUDY ON MEDICARE COVERAGE OF ROUTINE THYROID SCREENING.

    (a) Study.--The Secretary of Health and Human Services shall request 
the National Academy of Sciences, and as appropriate in conjunction with 
the United States Preventive Services Task Force, to conduct a study on 
the addition of coverage of routine thyroid screening using a thyroid 
stimulating hormone test as a preventive benefit provided to medicare 
beneficiaries under title XVIII of the Social Security Act for some or 
all medicare beneficiaries. In conducting the study, the Academy shall 
consider the short-term and long-term benefits, and costs to the 
medicare program, of such addition.
    (b) Report.--Not later than 2 years after the date of the enactment 
of this Act, the Secretary of Health and Human Services shall submit a 
report on the findings of the study conducted under subsection (a) to 
the Committee on Ways and Means and the Committee on Commerce of the 
House of Representatives and the Committee on Finance of the Senate.

SEC. 124. MEDPAC STUDY ON CONSUMER COALITIONS.

    (a) Study.--The Medicare Payment Advisory Commission shall conduct a 
study that examines the use of consumer coalitions in the marketing of 
Medicare+Choice plans under the medicare program under title XVIII of 
the Social Security Act. The study shall examine--
            (1) the potential for increased efficiency in the medicare 
        program through greater beneficiary knowledge of their health 
        care options, decreased marketing costs of Medicare+Choice 
        organizations, and creation of a group market;
            (2) the implications of Medicare+Choice plans and medicare 
        supplemental policies (under section 1882 of the Social Security 
        Act (42 U.S.C. 1395ss)) offering medicare beneficiaries in the 
        same geographic location different benefits and premiums based 
        on their affiliation with a consumer coalition;
            (3) how coalitions should be governed, how they should be 
        accountable to the Secretary of Health and Human Services, and 
        how potential conflicts of interest in the activities of 
        consumer coalitions should be avoided; and
            (4) how such coalitions should be funded.

    (b) Report.--Not later than 1 year after the date of the enactment 
of this Act, the Commission shall submit to Congress a report on the 
study conducted under subsection (a). The report shall include a 
recommendation on whether and how a demonstration project might be 
conducted for the operation of consumer coalitions under the medicare 
program.

[[Page 114 STAT. 2763A-479]]

    (c) Consumer Coalition Defined.--For purposes of this section, the 
term ``consumer coalition'' means a nonprofit, community-based group of 
organizations that--
            (1) provides information to medicare beneficiaries about 
        their health care options under the medicare program; and
            (2) negotiates benefits and premiums for medicare 
        beneficiaries who are members or otherwise affiliated with the 
        group of organizations with Medicare+Choice organizations 
        offering Medicare+Choice plans, issuers of medicare supplemental 
        policies, issuers of long-term care coverage, and pharmacy 
        benefit managers.

SEC. 125. STUDY ON LIMITATION ON STATE PAYMENT FOR MEDICARE COST-SHARING 
            AFFECTING ACCESS TO SERVICES FOR QUALIFIED MEDICARE 
            BENEFICIARIES.

    (a) In General.--The Secretary of Health and Human Services shall 
conduct a study to determine if access to certain services (including 
mental health services) for qualified medicare beneficiaries has been 
affected by limitations on a State's payment for medicare cost-sharing 
for such beneficiaries under section 1902(n) of the Social Security Act 
(42 U.S.C. 1396a(n)). As part of such study, the Secretary shall analyze 
the effect of such payment limitation on providers who serve a 
disproportionate share of such beneficiaries.
    (b) Report.--Not later than 1 year after the date of the enactment 
of this Act, the Secretary shall submit to Congress a report on the 
study under subsection (a). The report shall include recommendations 
regarding any changes that should be made to the State payment limits 
under section 1902(n) for qualified medicare beneficiaries to ensure 
appropriate access to services.

SEC. 126. STUDIES ON PREVENTIVE INTERVENTIONS IN PRIMARY CARE FOR OLDER 
            AMERICANS.

    (a) Studies.--The Secretary of Health and Human Services, acting 
through the United States Preventive Services Task Force, shall conduct 
a series of studies designed to identify preventive interventions that 
can be delivered in the primary care setting and that are most valuable 
to older Americans.
    (b) Mission Statement.--The mission statement of the United States 
Preventive Services Task Force is amended to include the evaluation of 
services that are of particular relevance to older Americans.
    (c) Report.--Not later than 1 year after the date of the enactment 
of this Act, and annually thereafter, the Secretary of Health and Human 
Services shall submit to Congress a report on the conclusions of the 
studies conducted under subsection (a), together with recommendations 
for such legislation and administrative actions as the Secretary 
considers appropriate.

SEC. 127. MEDPAC STUDY AND REPORT ON MEDICARE COVERAGE OF CARDIAC AND 
            PULMONARY REHABILITATION THERAPY SERVICES.

    (a) Study.--
            (1) In general.--The Medicare Payment Advisory Commission 
        shall conduct a study on coverage of cardiac and pulmonary 
        rehabilitation therapy services under the medicare program under 
        title XVIII of the Social Security Act.

[[Page 114 STAT. 2763A-480]]

            (2) Focus.--In conducting the study under paragraph (1), the 
        Commission shall focus on the appropriate--
                    (A) qualifying diagnoses required for coverage of 
                cardiac and pulmonary rehabilitation therapy services;
                    (B) level of physician direct involvement and 
                supervision in furnishing such services; and
                    (C) level of reimbursement for such services.

    (b) Report.--Not later than 18 months after the date of the 
enactment of this Act, the Commission shall submit to Congress a report 
on the study conducted under subsection (a) together with such 
recommendations for legislation and administrative action as the 
Commission determines appropriate.

SEC. 128. LIFESTYLE MODIFICATION PROGRAM DEMONSTRATION.

    (a) In General.--The Secretary of Health and Human Services shall 
carry out the demonstration project known as the Lifestyle Modification 
Program Demonstration, as described in the Health Care Financing 
Administration Memorandum of Understanding entered into on November 13, 
2000, and as subsequently modified, (in this section referred to as the 
``project'') in accordance with the following requirements:
            (1) The project shall include no fewer than 1,800 medicare 
        beneficiaries who complete under the project the entire course 
        of treatment under the Lifestyle Modification Program.
            (2) The project shall be conducted over a course of 4 years.

    (b) Study on Cost-Effectiveness.--
            (1) Study.--The Secretary shall conduct a study on the cost-
        effectiveness of the Lifestyle Modification Program as conducted 
        under the project. In determining whether such Program is cost-
        effective, the Secretary shall determine (using a control group 
        under a matched paired experimental design) whether expenditures 
        incurred for medicare beneficiaries enrolled under the project 
        exceed expenditures for the control group of medicare 
        beneficiaries with similar health conditions who are not 
        enrolled under the project.
            (2) Reports.--
                    (A) Initial report.--Not later that 1 year after the 
                date on which 900 medicare beneficiaries have completed 
                the entire course of treatment under the Lifestyle 
                Modification Program under the project, the Secretary 
                shall submit to Congress an initial report on the study 
                conducted under paragraph (1).
                    (B) Final report.--Not later that 1 year after the 
                date on which 1,800 medicare beneficiaries have 
                completed the entire course of treatment under such 
                Program under the project, the Secretary shall submit to 
                Congress a final report on the study conducted under 
                paragraph (1).

[[Page 114 STAT. 2763A-481]]

                TITLE II--RURAL HEALTH CARE IMPROVEMENTS

             Subtitle A--Critical Access Hospital Provisions

SEC. 201. CLARIFICATION OF NO BENEFICIARY COST-SHARING FOR CLINICAL 
            DIAGNOSTIC LABORATORY TESTS FURNISHED BY CRITICAL ACCESS 
            HOSPITALS.

    (a) Payment Clarification.--Section 1834(g) (42 U.S.C. 1395m(g)) is 
amended by adding at the end the following new paragraph:
            ``(4) No beneficiary cost-sharing for clinical diagnostic 
        laboratory services.--No coinsurance, deductible, copayment, or 
        other cost-sharing otherwise applicable under this part shall 
        apply with respect to clinical diagnostic laboratory services 
        furnished as an outpatient critical access hospital service. 
        Nothing in this title shall be construed as providing for 
        payment for clinical diagnostic laboratory services furnished as 
        part of outpatient critical access hospital services, other than 
        on the basis described in this subsection.''.

    (b) Technical and Conforming Amendments.--
            (1) Paragraphs (1)(D)(i) and (2)(D)(i) of section 1833(a) 
        (42 U.S.C. 1395l(a)) are each amended by striking ``or which are 
        furnished on an outpatient basis by a critical access 
        hospital''.
            (2) Section 403(d)(2) of BBRA (113 Stat. 1501A-371) is 
        amended by striking ``The amendment made by subsection (a) shall 
        apply'' and inserting ``Paragraphs (1) through (3) of section 
        1834(g) of the Social Security Act (as amended by paragraph (1)) 
        apply''.

    (c) Effective Dates.--The amendment made--
            (1) by subsection (a) shall apply to services furnished on 
        or after the date of the enactment of BBRA;
            (2) by subsection (b)(1) shall apply as if included in the 
        enactment of section 403(e)(1) of BBRA (113 Stat. 1501A-371); 
        and
            (3) by subsection (b)(2) shall apply as if included in the 
        enactment of section 403(d)(2) of BBRA (113 Stat. 1501A-371).

SEC. 202. ASSISTANCE WITH FEE SCHEDULE PAYMENT FOR PROFESSIONAL SERVICES 
            UNDER ALL-INCLUSIVE RATE.

    (a) In General.--Section 1834(g)(2)(B) (42 U.S.C. 1395m(g)(2)(B)) is 
amended by inserting ``115 percent of'' before ``such amounts''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to items and services furnished on or after July 1, 
2001.

SEC. 203. EXEMPTION OF CRITICAL ACCESS HOSPITAL SWING BEDS FROM SNF PPS.

    (a) In General.--Section 1888(e)(7) (42 U.S.C. 1395yy(e)(7)) is 
amended--
            (1) in the heading, by striking ``Transition for'' and 
        inserting ``Treatment of'';

[[Page 114 STAT. 2763A-482]]

            (2) in subparagraph (A), by striking ``In general.--The'' 
        and inserting ``Transition.--Subject to subparagraph (C), the'';
            (3) in subparagraph (A), by inserting ``(other than critical 
        access hospitals)'' after ``facilities described in subparagraph 
        (B)'';
            (4) in subparagraph (B), by striking ``, for which payment'' 
        and all that follows before the period; and
            (5) by adding at the end the following new subparagraph:
                    ``(C) Exemption from pps of swing-bed services 
                furnished in critical access hospitals.--The prospective 
                payment system established under this subsection shall 
                not apply to services furnished by a critical access 
                hospital pursuant to an agreement under section 1883.''.

    (b) Payment on a Reasonable Cost Basis for Swing Bed Services 
Furnished by Critical Access Hospitals.--Section 1883(a) (42 U.S.C. 
1395tt(a)) is amended--
            (1) in paragraph (2)(A), by inserting ``(other than a 
        critical access hospital)'' after ``any hospital''; and
            (2) by adding at the end the following new paragraph:

    ``(3) Notwithstanding any other provision of this title, a critical 
access hospital shall be paid for covered skilled nursing facility 
services furnished under an agreement entered into under this section on 
the basis of the reasonable costs of such services (as determined under 
section 1861(v)).''.
    (c) Effective Date.--The amendments made by this section shall apply 
to cost reporting periods beginning on or after the date of the 
enactment of this Act.

SEC. 204. PAYMENT IN CRITICAL ACCESS HOSPITALS FOR EMERGENCY ROOM ON-
            CALL PHYSICIANS.

    (a) In General.--Section 1834(g) (42 U.S.C. 1395m(g)), as amended by 
section 201(a), is further amended by adding at the end the following 
new paragraph:
            ``(5) Coverage of costs for emergency room on-call 
        physicians.--In determining the reasonable costs of outpatient 
        critical access hospital services under paragraphs (1) and 
        (2)(A), the Secretary shall recognize as allowable costs, 
        amounts (as defined by the Secretary) for reasonable 
        compensation and related costs for emergency room physicians who 
        are on-call (as defined by the Secretary) but who are not 
        present on the premises of the critical access hospital 
        involved, and are not otherwise furnishing physicians' services 
        and are not on-call at any other provider or facility.''.

    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to cost reporting periods beginning on or after October 1, 2001.

SEC. 205. TREATMENT OF AMBULANCE SERVICES FURNISHED BY CERTAIN CRITICAL 
            ACCESS HOSPITALS.

    (a) In General.--Section 1834(l) (42 U.S.C. 1395m(l)) is amended by 
adding at the end the following new paragraph:
            ``(8) Services furnished by critical access hospitals.--
        Notwithstanding any other provision of this subsection, the 
        Secretary shall pay the reasonable costs incurred in furnishing 
        ambulance services if such services are furnished--
                    ``(A) by a critical access hospital (as defined in 
                section 1861(mm)(1)), or

[[Page 114 STAT. 2763A-483]]

                    ``(B) by an entity that is owned and operated by a 
                critical access hospital,
        but only if the critical access hospital or entity is the only 
        provider or supplier of ambulance services that is located 
        within a 35-mile drive of such critical access hospital.''.

    (b) Conforming Amendment.--Section 1833(a)(1)(R) (42 U.S.C. 
1395l(a)(1)(R)) is amended--
            (1) by striking ``ambulance service,'' and inserting 
        ``ambulance services, (i)''; and
            (2) by inserting before the comma at the end the following: 
        ``and (ii) with respect to ambulance services described in 
        section 1834(l)(8), the amounts paid shall be the amounts 
        determined under section 1834(g) for outpatient critical access 
        hospital services''.

    (c) Effective Date.--The amendments made by this section shall apply 
to services furnished on or after the date of the enactment of this Act.

SEC. 206. GAO STUDY ON CERTAIN ELIGIBILITY REQUIREMENTS FOR CRITICAL 
            ACCESS HOSPITALS.

    (a) Study.--The Comptroller General of the United States shall 
conduct a study on the eligibility requirements for critical access 
hospitals under section 1820(c) of the Social Security Act (42 U.S.C. 
1395i-4(c)) with respect to limitations on average length of stay and 
number of beds in such a hospital, including an analysis of--
            (1) the feasibility of having a distinct part unit as part 
        of a critical access hospital for purposes of the medicare 
        program under title XVIII of such Act; and
            (2) the effect of seasonal variations in patient admissions 
        on critical access hospital eligibility requirements with 
        respect to limitations on average annual length of stay and 
        number of beds.

    (b) Report.--Not later than 1 year after the date of the enactment 
of this Act, the Comptroller General shall submit to Congress a report 
on the study conducted under subsection (a) together with 
recommendations regarding--
            (1) whether distinct part units should be permitted as part 
        of a critical access hospital under the medicare program;
            (2) if so permitted, the payment methodologies that should 
        apply with respect to services provided by such units;
            (3) whether, and to what extent, such units should be 
        included in or excluded from the bed limits applicable to 
        critical access hospitals under the medicare program; and
            (4) any adjustments to such eligibility requirements to 
        account for seasonal variations in patient admissions.

              Subtitle B--Other Rural Hospitals Provisions

SEC. 211. TREATMENT OF RURAL DISPROPORTIONATE SHARE HOSPITALS.

    (a) Application of Uniform Threshold.--Section 1886(d)(5)(F)(v) (42 
U.S.C. 1395ww(d)(5)(F)(v)) is amended--
            (1) in subclause (II), by inserting ``(or 15 percent, for 
        discharges occurring on or after April 1, 2001)'' after ``30 
        percent'';

[[Page 114 STAT. 2763A-484]]

            (2) in subclause (III), by inserting ``(or 15 percent, for 
        discharges occurring on or after April 1, 2001)'' after ``40 
        percent''; and
            (3) in subclause (IV), by inserting ``(or 15 percent, for 
        discharges occurring on or after April 1, 2001)'' after ``45 
        percent''.

    (b) Adjustment of Payment Formulas.--
            (1) Sole community hospitals.--Section 1886(d)(5)(F) (42 
        U.S.C. 1395ww(d)(5)(F)) is amended--
                    (A) in clause (iv)(VI), by inserting after ``10 
                percent'' the following: ``or, for discharges occurring 
                on or after April 1, 2001, is equal to the percent 
                determined in accordance with clause (x)''; and
                    (B) by adding at the end the following new clause:

    ``(x) For purposes of clause (iv)(VI) (relating to sole community 
hospitals), in the case of a hospital for a cost reporting period with a 
disproportionate patient percentage (as defined in clause (vi)) that--
            ``(I) is less than 19.3, the disproportionate share 
        adjustment percentage is determined in accordance with the 
        following formula: (P-15)(.65) + 2.5;
            ``(II) is equal to or exceeds 19.3, but is less than 30.0, 
        such adjustment percentage is equal to 5.25 percent; or
            ``(III) is equal to or exceeds 30, such adjustment 
        percentage is equal to 10 percent,

where `P' is the hospital's disproportionate patient percentage (as 
defined in clause (vi)).''.
            (2) Rural referral centers.--Such section is further 
        amended--
                    (A) in clause (iv)(V), by inserting after ``clause 
                (viii)'' the following: ``or, for discharges occurring 
                on or after April 1, 2001, is equal to the percent 
                determined in accordance with clause (xi)''; and
                    (B) by adding at the end the following new clause:

    ``(xi) For purposes of clause (iv)(V) (relating to rural referral 
centers), in the case of a hospital for a cost reporting period with a 
disproportionate patient percentage (as defined in clause (vi)) that--
            ``(I) is less than 19.3, the disproportionate share 
        adjustment percentage is determined in accordance with the 
        following formula: (P-15)(.65) + 2.5;
            ``(II) is equal to or exceeds 19.3, but is less than 30.0, 
        such adjustment percentage is equal to 5.25 percent; or
            ``(III) is equal to or exceeds 30, such adjustment 
        percentage is determined in accordance with the following 
        formula: (P-30)(.6) + 5.25,

where `P' is the hospital's disproportionate patient percentage (as 
defined in clause (vi)).''.
            (3) Small rural hospitals generally.--Such section is 
        further amended--
                    (A) in clause (iv)(III), by inserting after ``4 
                percent'' the following: ``or, for discharges occurring 
                on or after April 1, 2001, is equal to the percent 
                determined in accordance with clause (xii)''; and
                    (B) by adding at the end the following new clause:

    ``(xii) For purposes of clause (iv)(III) (relating to small rural 
hospitals generally), in the case of a hospital for a cost reporting

[[Page 114 STAT. 2763A-485]]

period with a disproportionate patient percentage (as defined in clause 
(vi)) that--
            ``(I) is less than 19.3, the disproportionate share 
        adjustment percentage is determined in accordance with the 
        following formula: (P-15)(.65) + 2.5; or
            ``(II) is equal to or exceeds 19.3, such adjustment 
        percentage is equal to 5.25 percent,

where `P' is the hospital's disproportionate patient percentage (as 
defined in clause (vi)).''.
            (4) Hospitals that are both sole community hospitals and 
        rural referral centers.--Such section is further amended, in 
        clause (iv)(IV), by inserting after ``clause (viii)'' the 
        following: ``or, for discharges occurring on or after April 1, 
        2001, the greater of the percentages determined under clause (x) 
        or (xi)''.
            (5) Urban hospitals with less than 100 beds.--Such section 
        is further amended--
                    (A) in clause (iv)(II), by inserting after ``5 
                percent'' the following: ``or, for discharges occurring 
                on or after April 1, 2001, is equal to the percent 
                determined in accordance with clause (xiii)''; and
                    (B) by adding at the end the following new clause:

    ``(xiii) For purposes of clause (iv)(II) (relating to urban 
hospitals with less than 100 beds), in the case of a hospital for a cost 
reporting period with a disproportionate patient percentage (as defined 
in clause (vi)) that--
            ``(I) is less than 19.3, the disproportionate share 
        adjustment percentage is determined in accordance with the 
        following formula: (P-15)(.65) + 2.5; or
            ``(II) is equal to or exceeds 19.3, such adjustment 
        percentage is equal to 5.25 percent,

where `P' is the hospital's disproportionate patient percentage (as 
defined in clause (vi)).''.

SEC. 212. OPTION TO BASE ELIGIBILITY FOR MEDICARE DEPENDENT, SMALL RURAL 
            HOSPITAL PROGRAM ON DISCHARGES DURING TWO OF THE THREE MOST 
            RECENTLY AUDITED COST REPORTING PERIODS.

    (a) In General.--Section 1886(d)(5)(G)(iv)(IV) (42 U.S.C. 
1395ww(d)(5)(G)(iv)(IV)) is amended by inserting ``, or two of the three 
most recently audited cost reporting periods for which the Secretary has 
a settled cost report,'' after ``1987''.
    (b) Effective Date.--The amendment made by this section shall apply 
with respect to cost reporting periods beginning on or after April 1, 
2001.

SEC. 213. EXTENSION OF OPTION TO USE REBASED TARGET AMOUNTS TO ALL SOLE 
            COMMUNITY HOSPITALS.

    (a) In General.--Section 1886(b)(3)(I)(i) (42 U.S.C. 
1395ww(b)(3)(I)(i)) is amended--
            (1) in the matter preceding subclause (I), by striking 
        ``that for its cost reporting period beginning during 1999'' and 
        all that follows through ``for such target amount'' and 
        inserting ``there shall be substituted for the amount otherwise 
        determined under subsection (d)(5)(D)(i), if such substitution 
        results in a greater amount of payment under this section for 
        the hospital'';

[[Page 114 STAT. 2763A-486]]

            (2) in subclause (I), by striking ``target amount otherwise 
        applicable'' and all that follows through ``target amount')'' 
        and inserting ``the amount otherwise applicable to the hospital 
        under subsection (d)(5)(D)(i) (referred to in this clause as the 
        `subsection (d)(5)(D)(i) amount')''; and
            (3) in each of subclauses (II) and (III), by striking 
        ``subparagraph (C) target amount'' and inserting ``subsection 
        (d)(5)(D)(i) amount''.

    (b) Effective Date.--The amendments made by this section shall take 
effect as if included in the enactment of section 405 of BBRA (113 Stat. 
1501A-372).

SEC. 214. MEDPAC ANALYSIS OF IMPACT OF VOLUME ON PER UNIT COST OF RURAL 
            HOSPITALS WITH PSYCHIATRIC UNITS.

    The Medicare Payment Advisory Commission, in its study conducted 
pursuant to subsection (a) of section 411 of BBRA (113 Stat. 1501A-377), 
shall include--
            (1) in such study an analysis of the impact of volume on the 
        per unit cost of rural hospitals with psychiatric units; and
            (2) in its report under subsection (b) of such section a 
        recommendation on whether special treatment for such hospitals 
        may be warranted.

                   Subtitle C--Other Rural Provisions

SEC. 221. ASSISTANCE FOR PROVIDERS OF AMBULANCE SERVICES IN RURAL AREAS.

    (a) Transitional Assistance in Certain Mileage Rates.--Section 
1834(l) (42 U.S.C. 1395m(l)) is amended by adding at the end the 
following new paragraph:
            ``(8) Transitional assistance for rural providers.--In the 
        case of ground ambulance services furnished on or after July 1, 
        2001, and before January 1, 2004, for which the transportation 
        originates in a rural area (as defined in section 1886(d)(2)(D)) 
        or in a rural census tract of a metropolitan statistical area 
        (as determined under the most recent modification of the 
        Goldsmith Modification, originally published in the Federal 
        Register on February 27, 1992 (57 Fed. Reg. 6725)), the fee 
        schedule established under this subsection shall provide that, 
        with respect to the payment rate for mileage for a trip above 17 
        miles, and up to 50 miles, the rate otherwise established shall 
        be increased by not less than \1/2\ of the additional payment 
        per mile established for the first 17 miles of such a trip 
        originating in a rural area.''.

    (b) GAO Studies on the Costs of Ambulance Services Furnished in 
Rural Areas.--
            (1) Study.--The Comptroller General of the United States 
        shall conduct a study on each of the matters described in 
        paragraph (2).
            (2) Matters described.--The matters referred to in paragraph 
        (1) are the following:
                    (A) The cost of efficiently providing ambulance 
                services for trips originating in rural areas, with 
                special emphasis on collection of cost data from rural 
                providers.

[[Page 114 STAT. 2763A-487]]

                    (B) The means by which rural areas with low 
                population densities can be identified for the purpose 
                of designating areas in which the cost of providing 
                ambulance services would be expected to be higher than 
                similar services provided in more heavily populated 
                areas because of low usage. Such study shall also 
                include an analysis of the additional costs of providing 
                ambulance services in areas designated under the 
                previous sentence.
            (3) Report.--Not later than June 30, 2002, the Comptroller 
        General shall submit to Congress a report on the results of the 
        studies conducted under paragraph (1) and shall include 
        recommendations on steps that should be taken to assure access 
        to ambulance services in rural areas.

    (c) Adjustment in Rural Rates.--In providing for adjustments under 
subparagraph (D) of section 1834(l)(2) of the Social Security Act (42 
U.S.C. 1395m(l)(2)) for years beginning with 2004, the Secretary of 
Health and Human Services shall take into consideration the 
recommendations contained in the report under subsection (b)(2) and 
shall adjust the fee schedule payment rates under such section for 
ambulance services provided in low density rural areas based on the 
increased cost (if any) of providing such services in such areas.
    (d) Effective Date.--The amendment made by subsection (a) shall 
apply to services furnished on or after July 1, 2001. In applying such 
amendment to services furnished on or after such date and before January 
1, 2002, the amount of the rate increase provided under such amendment 
shall be equal to $1.25 per mile.

SEC. 222. PAYMENT FOR CERTAIN PHYSICIAN ASSISTANT SERVICES.

    (a) Payment for Certain Physician Assistant Services.--Section 
1842(b)(6)(C) (42 U.S.C. 1395u(b)(6)(C)) is amended--
            (1) by striking ``for such services provided before January 
        1, 2003,''; and
            (2) by striking the semicolon at the end and inserting a 
        comma.

    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on the date of the enactment of this Act.

SEC. 223. REVISION OF MEDICARE REIMBURSEMENT FOR TELEHEALTH SERVICES.

    (a) Time Limit for BBA Provision.--Section 4206(a) of BBA (42 U.S.C. 
1395l note) is amended by striking ``Not later than January 1, 1999'' 
and inserting ``For services furnished on and after January 1, 1999, and 
before October 1, 2001''.
    (b) Expansion of Medicare Payment for Telehealth Services.--Section 
1834 (42 U.S.C. 1395m) is amended by adding at the end the following new 
subsection:
    ``(m) Payment for Telehealth Services.--
            ``(1) In general.--The Secretary shall pay for telehealth 
        services that are furnished via a telecommunications system by a 
        physician (as defined in section 1861(r)) or a practitioner 
        (described in section 1842(b)(18)(C)) to an eligible telehealth 
        individual enrolled under this part notwithstanding that the 
        individual physician or practitioner providing the telehealth 
        service is not at the same location as the beneficiary. For 
        purposes of the preceding sentence, in the case of any Federal 
        telemedicine demonstration program conducted in Alaska or 
        Hawaii, the term `telecommunications system' includes store-

[[Page 114 STAT. 2763A-488]]

        and-forward technologies that provide for the asynchronous 
        transmission of health care information in single or multimedia 
        formats.
            ``(2) Payment amount.--
                    ``(A) Distant site.--The Secretary shall pay to a 
                physician or practitioner located at a distant site that 
                furnishes a telehealth service to an eligible telehealth 
                individual an amount equal to the amount that such 
                physician or practitioner would have been paid under 
                this title had such service been furnished without the 
                use of a telecommunications system.
                    ``(B) Facility fee for originating site.--With 
                respect to a telehealth service, subject to section 
                1833(a)(1)(U), there shall be paid to the originating 
                site a facility fee equal to--
                          ``(i) for the period beginning on October 1, 
                      2001, and ending on December 31, 2001, and for 
                      2002, $20; and
                          ``(ii) for a subsequent year, the facility fee 
                      specified in clause (i) or this clause for the 
                      preceding year increased by the percentage 
                      increase in the MEI (as defined in section 
                      1842(i)(3)) for such subsequent year.
                    ``(C) Telepresenter not required.--Nothing in this 
                subsection shall be construed as requiring an eligible 
                telehealth individual to be presented by a physician or 
                practitioner at the originating site for the furnishing 
                of a service via a telecommunications system, unless it 
                is medically necessary (as determined by the physician 
                or practitioner at the distant site).
            ``(3) Limitation on beneficiary charges.--
                    ``(A) Physician and practitioner.--The provisions of 
                section 1848(g) and subparagraphs (A) and (B) of section 
                1842(b)(18) shall apply to a physician or practitioner 
                receiving payment under this subsection in the same 
                manner as they apply to physicians or practitioners 
                under such sections.
                    ``(B) Originating site.--The provisions of section 
                1842(b)(18) shall apply to originating sites receiving a 
                facility fee in the same manner as they apply to 
                practitioners under such section.
            ``(4) Definitions.--For purposes of this subsection:
                    ``(A) Distant site.--The term `distant site' means 
                the site at which the physician or practitioner is 
                located at the time the service is provided via a 
                telecommunications system.
                    ``(B) Eligible telehealth individual.--The term 
                `eligible telehealth individual' means an individual 
                enrolled under this part who receives a telehealth 
                service furnished at an originating site.
                    ``(C) Originating site.--
                          ``(i) In general.--The term `originating site' 
                      means only those sites described in clause (ii) at 
                      which the eligible telehealth individual is 
                      located at the time the service is furnished via a 
                      telecommunications system and only if such site is 
                      located--
                                    ``(I) in an area that is designated 
                                as a rural health professional shortage 
                                area under section

[[Page 114 STAT. 2763A-489]]

                                332(a)(1)(A) of the Public Health 
                                Service Act (42 U.S.C. 254e(a)(1)(A));
                                    ``(II) in a county that is not 
                                included in a Metropolitan Statistical 
                                Area; or
                                    ``(III) from an entity that 
                                participates in a Federal telemedicine 
                                demonstration project that has been 
                                approved by (or receives funding from) 
                                the Secretary of Health and Human 
                                Services as of December 31, 2000.
                          ``(ii) Sites described.--The sites referred to 
                      in clause (i) are the following sites:
                                    ``(I) The office of a physician or 
                                practitioner.
                                    ``(II) A critical access hospital 
                                (as defined in section 1861(mm)(1)).
                                    ``(III) A rural health clinic (as 
                                defined in section 1861(aa)(s)).
                                    ``(IV) A Federally qualified health 
                                center (as defined in section 
                                1861(aa)(4)).
                                    ``(V) A hospital (as defined in 
                                section 1861(e)).
                    ``(D) Physician.--The term `physician' has the 
                meaning given that term in section 1861(r).
                    ``(E) Practitioner.--The term `practitioner' has the 
                meaning given that term in section 1842(b)(18)(C).
                    ``(F) Telehealth service.--
                          ``(i) In general.--The term `telehealth 
                      service' means professional consultations, office 
                      visits, and office psychiatry services (identified 
                      as of July 1, 2000, by HCPCS codes 99241-99275, 
                      99201-99215, 90804-90809, and 90862 (and as 
                      subsequently modified by the Secretary)), and any 
                      additional service specified by the Secretary.
                          ``(ii) Yearly update.--The Secretary shall 
                      establish a process that provides, on an annual 
                      basis, for the addition or deletion of services 
                      (and HCPCS codes), as appropriate, to those 
                      specified in clause (i) for authorized payment 
                      under paragraph (1).''.

    (c) Conforming Amendment.--Section 1833(a)(1) (42 U.S.C. 1395l(1)), 
as amended by section 105(c), is further amended--
            (1) by striking ``and (T)'' and inserting ``(T)''; and
            (2) by inserting before the semicolon at the end the 
        following: ``, and (U) with respect to facility fees described 
        in section 1834(m)(2)(B), the amounts paid shall be 80 percent 
        of the lesser of the actual charge or the amounts specified in 
        such section''.

    (d) Study and Report on Additional Coverage.--
            (1) Study.--The Secretary of Health and Human Services shall 
        conduct a study to identify--
                    (A) settings and sites for the provision of 
                telehealth services that are in addition to those 
                permitted under section 1834(m) of the Social Security 
                Act, as added by subsection (b);
                    (B) practitioners that may be reimbursed under such 
                section for furnishing telehealth services that are in 
                addition to the practitioners that may be reimbursed for 
                such services under such section; and

[[Page 114 STAT. 2763A-490]]

                    (C) geographic areas in which telehealth services 
                may be reimbursed that are in addition to the geographic 
                areas where such services may be reimbursed under such 
                section.
            (2) Report.--Not later than 2 years after the date of the 
        enactment of this Act, the Secretary shall submit to Congress a 
        report on the study conducted under paragraph (1) together with 
        such recommendations for legislation that the Secretary 
        determines are appropriate.

    (e) Effective Date.--The amendments made by subsections (b) and (c) 
shall be effective for services furnished on or after October 1, 2001.

SEC. 224. EXPANDING ACCESS TO RURAL HEALTH CLINICS.

    (a) In General.--The matter in section 1833(f ) (42 U.S.C. 1395l(f 
)) preceding paragraph (1) is amended by striking ``rural hospitals'' 
and inserting ``hospitals''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to services furnished on or after July 1, 2001.

SEC. 225. MEDPAC STUDY ON LOW-VOLUME, ISOLATED RURAL HEALTH CARE 
            PROVIDERS.

    (a) Study.--The Medicare Payment Advisory Commission shall conduct a 
study on the effect of low patient and procedure volume on the financial 
status of low-volume, isolated rural health care providers participating 
in the medicare program under title XVIII of the Social Security Act.
    (b) Report.--Not later than 18 months after the date of the 
enactment of this Act, the Commission shall submit to Congress a report 
on the study conducted under subsection (a) indicating--
            (1) whether low-volume, isolated rural health care providers 
        are having, or may have, significantly decreased medicare 
        margins or other financial difficulties resulting from any of 
        the payment methodologies described in subsection (c);
            (2) whether the status as a low-volume, isolated rural 
        health care provider should be designated under the medicare 
        program and any criteria that should be used to qualify for such 
        a status; and
            (3) any changes in the payment methodologies described in 
        subsection (c) that are necessary to provide appropriate 
        reimbursement under the medicare program to low-volume, isolated 
        rural health care providers (as designated pursuant to paragraph 
        (2)).

    (c) Payment Methodologies Described.--The payment methodologies 
described in this subsection are the following:
            (1) The prospective payment system for hospital outpatient 
        department services under section 1833(t) of the Social Security 
        Act (42 U.S.C. 1395l(t)).
            (2) The fee schedule for ambulance services under section 
        1834(l) of such Act (42 U.S.C. 1395m(l)).
            (3) The prospective payment system for inpatient hospital 
        services under section 1886 of such Act (42 U.S.C. 1395ww).
            (4) The prospective payment system for routine service costs 
        of skilled nursing facilities under section 1888(e) of such Act 
        (42 U.S.C. 1395yy(e)).
            (5) The prospective payment system for home health services 
        under section 1895 of such Act (42 U.S.C. 1395fff ).

[[Page 114 STAT. 2763A-491]]

                TITLE III--PROVISIONS RELATING TO PART A

                 Subtitle A--Inpatient Hospital Services

SEC. 301. REVISION OF ACUTE CARE HOSPITAL PAYMENT UPDATE FOR 2001.

    (a) In General.--Section 1886(b)(3)(B)(i) (42 U.S.C. 
1395ww(b)(3)(B)(i)) is amended--
            (1) in subclause (XVI), by striking ``minus 1.1 percentage 
        points for hospitals (other than sole community hospitals) in 
        all areas, and the market basket percentage increase for sole 
        community hospitals,'' and inserting ``for hospitals in all 
        areas,'';
            (2) in subclause (XVII)--
                    (A) by striking ``minus 1.1 percentage points'' and 
                inserting ``minus 0.55 percentage points; and
                    (B) by striking ``and'' at the end;
            (3) by redesignating subclause (XVIII) as subclause (XIX);
            (4) in subclause (XIX), as so redesignated, by striking 
        ``fiscal year 2003'' and inserting ``fiscal year 2004''; and
            (5) by inserting after subclause (XVII) the following new 
        subclause:
            ``(XVIII) for fiscal year 2003, the market basket percentage 
        increase minus 0.55 percentage points for hospitals in all 
        areas, and''.

    (b) Special Rule for Payment for Fiscal Year 2001.--Notwithstanding 
the amendment made by subsection (a), for purposes of making payments 
for fiscal year 2001 for inpatient hospital services furnished by 
subsection (d) hospitals (as defined in section 1886(d)(1)(B) of the 
Social Security Act (42 U.S.C. 1395ww(d)(1)(B)), the ``applicable 
percentage increase'' referred to in section 1886(b)(3)(B)(i) of such 
Act (42 U.S.C. 1395ww(b)(3)(B)(i))--
            (1) for discharges occurring on or after October 1, 2000, 
        and before April 1, 2001, shall be determined in accordance with 
        subclause (XVI) of such section as in effect on the day before 
        the date of the enactment of this Act; and
            (2) for discharges occurring on or after April 1, 2001, and 
        before October 1, 2001, shall be equal to--
                    (A) the market basket percentage increase plus 1.1 
                percentage points for hospitals (other than sole 
                community hospitals) in all areas; and
                    (B) the market basket percentage increase for sole 
                community hospitals.

    (c) Consideration of Price of Blood and Blood Products in Market 
Basket Index.--The Secretary of Health and Human Services shall, when 
next (after the date of the enactment of this Act) rebasing and revising 
the hospital market basket index (as defined in section 
1886(b)(3)(B)(iii) of the Social Security Act (42 U.S.C. 
1395ww(b)(3)(B)(iii))), consider the prices of blood and blood products 
purchased by hospitals and determine whether those prices are adequately 
reflected in such index.
    (d) MedPAC Study and Report Regarding Certain Hospital Costs.--
            (1) Study.--The Medicare Payment Advisory Commission shall 
        conduct a study on--

[[Page 114 STAT. 2763A-492]]

                    (A) any increased costs incurred by subsection (d) 
                hospitals (as defined in paragraph (1)(B) of section 
                1886(d) of the Social Security Act (42 U.S.C. 
                1395ww(d))) in providing inpatient hospital services to 
                medicare beneficiaries under title XVIII of such Act 
                during the period beginning on October 1, 1983, and 
                ending on September 30, 1999, that were attributable 
                to--
                          (i) complying with new blood safety measure 
                      requirements; and
                          (ii) providing such services using new 
                      technologies;
                    (B) the extent to which the prospective payment 
                system for such services under such section provides 
                adequate and timely recognition of such increased costs;
                    (C) the prospects for (and to the extent 
                practicable, the magnitude of ) cost increases that 
                hospitals will incur in providing such services that are 
                attributable to complying with new blood safety measure 
                requirements and providing such services using new 
                technologies during the 10 years after the date of the 
                enactment of this Act; and
                    (D) the feasibility and advisability of establishing 
                mechanisms under such payment system to provide for more 
                timely and accurate recognition of such cost increases 
                in the future.
            (2) Consultation.--In conducting the study under this 
        subsection, the Commission shall consult with representatives of 
        the blood community, including--
                    (A) hospitals;
                    (B) organizations involved in the collection, 
                processing, and delivery of blood; and
                    (C) organizations involved in the development of new 
                blood safety technologies.
            (3) Report.--Not later than 1 year after the date of the 
        enactment of this Act, the Commission shall submit to Congress a 
        report on the study conducted under paragraph (1) together with 
        such recommendations for legislation and administrative action 
        as the Commission determines appropriate.

    (e) Adjustment for Inpatient Case Mix Changes.--
            (1) In general.--Section 1886(d)(3)(A) (42 U.S.C. 
        1395ww(d)(3)(A)) is amended by adding at the end the following 
        new clause:
            ``(vi) Insofar as the Secretary determines that the 
        adjustments under paragraph (4)(C)(i) for a previous fiscal year 
        (or estimates that such adjustments for a future fiscal year) 
        did (or are likely to) result in a change in aggregate payments 
        under this subsection during the fiscal year that are a result 
        of changes in the coding or classification of discharges that do 
        not reflect real changes in case mix, the Secretary may adjust 
        the average standardized amounts computed under this paragraph 
        for subsequent fiscal years so as to eliminate the effect of 
        such coding or classification changes.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply to discharges occurring on or after October 1, 2001.

[[Page 114 STAT. 2763A-493]]

SEC. 302. ADDITIONAL MODIFICATION IN TRANSITION FOR INDIRECT MEDICAL 
            EDUCATION (IME) PERCENTAGE ADJUSTMENT.

    (a) In General.--Section 1886(d)(5)(B)(ii) (42 U.S.C. 
1395ww(d)(5)(B)(ii)) is amended--
            (1) in subclause (V) by striking ``and'' at the end;
            (2) by redesignating subclause (VI) as subclause (VII);
            (3) in subclause (VII) as so redesignated, by striking 
        ``2001'' and inserting ``2002''; and
            (4) by inserting after subclause (V) the following new 
        subclause:
                    ``(VI) during fiscal year 2002, `c' is equal to 1.6; 
                and''.

    (b) Special Rule for Payment for Fiscal Year 2001.--Notwithstanding 
paragraph (5)(B)(ii)(V) of section 1886(d) of the Social Security Act 
(42 U.S.C. 1395ww(d)(5)(B)(ii)(V)), for purposes of making payments for 
subsection (d) hospitals (as defined in paragraph (1)(B) of such 
section) with indirect costs of medical education, the indirect teaching 
adjustment factor referred to in paragraph (5)(B)(ii) of such section 
shall be determined, for discharges occurring on or after April 1, 2001, 
and before October 1, 2001, as if ``c'' in paragraph (5)(B)(ii)(V) of 
such section equalled 1.66 rather than 1.54.
    (c) Conforming Amendment Relating to Determination of Standardized 
Amount.--Section 1886(d)(2)(C)(i) (42 U.S.C. 1395ww(d)(2)(C)(i)) is 
amended by inserting ``or of section 302 of the Medicare, Medicaid, and 
SCHIP Benefits Improvement and Protection Act of 2000'' after ``Balanced 
Budget Refinement Act of 1999''.
    (d) Clerical Amendments.--Section 1886(d)(5)(B) (42 U.S.C. 
1395ww(d)(5)(B)), as amended by subsection (a), is further amended by 
moving the indentation of each of the following 2 ems to the left:
            (1) Clauses (ii), (v), and (vi).
            (2) Subclauses (I) (II), (III), (IV), (V), and (VII) of 
        clause (ii).
            (3) Subclauses (I) and (II) of clause (vi) and the flush 
        sentence at the end of such clause.

SEC. 303. DECREASE IN REDUCTIONS FOR DISPROPORTIONATE SHARE HOSPITAL 
            (DSH) PAYMENTS.

    (a) In General.--Section 1886(d)(5)(F)(ix) (42 U.S.C. 
1395ww(d)(5)(F)(ix)) is amended--
            (1) in subclause (III), by striking ``each of'' and by 
        inserting ``and 2 percent, respectively'' after ``3 percent''; 
        and
            (2) in subclause (IV), by striking ``4 percent'' and 
        inserting ``3 percent''.

    (b) Special Rule for Payment for Fiscal Year 2001.--Notwithstanding 
the amendment made by subsection (a)(1), for purposes of making 
disproportionate share payments for subsection (d) hospitals (as defined 
in section 1886(d)(1)(B) of the Social Security Act (42 U.S.C. 
1395ww(d)(1)(B)) for fiscal year 2001, the additional payment amount 
otherwise determined under clause (ii) of section 1886(d)(5)(F) of the 
Social Security Act (42 U.S.C. 1395ww(d)(5)(F))--
            (1) for discharges occurring on or after October 1, 2000, 
        and before April 1, 2001, shall be adjusted as provided by 
        clause (ix)(III) of such section as in effect on the day before 
        the date of the enactment of this Act; and

[[Page 114 STAT. 2763A-494]]

            (2) for discharges occurring on or after April 1, 2001, and 
        before October 1, 2001, shall, instead of being reduced by 3 
        percent as provided by clause (ix)(III) of such section as in 
        effect after the date of the enactment of this Act, be reduced 
        by 1 percent.

    (c) Conforming Amendments Relating to Determination of Standardized 
Amount.--Section 1886(d)(2)(C)(iv) (42 U.S.C. 1395ww(d)(2)(C)(iv)), is 
amended--
            (1) by striking ``1989 or'' and inserting ``1989,''; and
            (2) by inserting ``, or the enactment of section 303 of the 
        Medicare, Medicaid, and SCHIP Benefits Improvement and 
        Protection Act of 2000'' after ``Omnibus Budget Reconciliation 
        Act of 1990''.

    (d) Technical Amendment.--
            (1) In general.--Section 1886(d)(5)(F)(i) (42 U.S.C. 
        1395ww(d)(5)(F)(i)) is amended by striking ``and before October 
        1, 1997,''.
            (2) Effective date.--The amendment made by paragraph (1) is 
        effective as if included in the enactment of BBA.

    (e) Reference to Changes in DSH for Rural Hospitals.--For additional 
changes in the DSH program for rural hospitals, see section 211.

SEC. 304. WAGE INDEX IMPROVEMENTS.

    (a) Duration of Wage Index Reclassification; Use of 3-Year Wage 
Data.--Section 1886(d)(10)(D) (42 U.S.C. 1395ww(d)(10)(D)) is amended by 
adding at the end the following new clauses:
    ``(v) Any decision of the Board to reclassify a subsection (d) 
hospital for purposes of the adjustment factor described in subparagraph 
(C)(i)(II) for fiscal year 2001 or any fiscal year thereafter shall be 
effective for a period of 3 fiscal years, except that the Secretary 
shall establish procedures under which a subsection (d) hospital may 
elect to terminate such reclassification before the end of such period.
    ``(vi) Such guidelines shall provide that, in making decisions on 
applications for reclassification for the purposes described in clause 
(v) for fiscal year 2003 and any succeeding fiscal year, the Board shall 
base any comparison of the average hourly wage for the hospital with the 
average hourly wage for hospitals in an area on--
            ``(I) an average of the average hourly wage amount for the 
        hospital from the most recently published hospital wage survey 
        data of the Secretary (as of the date on which the hospital 
        applies for reclassification) and such amount from each of the 
        two immediately preceding surveys; and
            ``(II) an average of the average hourly wage amount for 
        hospitals in such area from the most recently published hospital 
        wage survey data of the Secretary (as of the date on which the 
        hospital applies for reclassification) and such amount from each 
        of the two immediately preceding surveys.''.

    (b) Process To Permit Statewide Wage Index Calculation and 
Application.--
            (1) In general.--The Secretary of Health and Human Services 
        shall establish a process (based on the voluntary process 
        utilized by the Secretary of Health and Human Services under 
        section 1848 of the Social Security Act (42 U.S.C. 1395w-

[[Page 114 STAT. 2763A-495]]

        4) for purposes of computing and applying a statewide geographic 
        adjustment factor) under which an appropriate statewide entity 
        may apply to have all the geographic areas in a State treated as 
        a single geographic area for purposes of computing and applying 
        the area wage index under section 1886(d)(3)(E) of such Act (42 
        U.S.C. 1395ww(d)(3)(E)). Such process shall be established by 
        October 1, 2001, for reclassifications beginning in fiscal year 
        2003.
            (2) Prohibition on individual hospital reclassification.--
        Notwithstanding any other provision of law, if the Secretary 
        applies a statewide geographic wage index under paragraph (1) 
        with respect to a State, any application submitted by a hospital 
        in that State under section 1886(d)(10) of the Social Security 
        Act (42 U.S.C. 1395ww(d)(10)) for geographic reclassification 
        shall not be considered.

    (c) Collection of Information on Occupational Mix.--
            (1) In general.--The Secretary of Health and Human Services 
        shall provide for the collection of data every 3 years on 
        occupational mix for employees of each subsection (d) hospital 
        (as defined in section 1886(d)(1)(D) of the Social Security Act 
        (42 U.S.C. 1395ww(d)(1)(D))) in the provision of inpatient 
        hospital services, in order to construct an occupational mix 
        adjustment in the hospital area wage index applied under section 
        1886(d)(3)(E) of such Act (42 U.S.C. 1395ww(d)(3)(E)).
            (2) Application.--The third sentence of section 
        1886(d)(3)(E) (42 U.S.C. 1395ww(d)(3)(E)) is amended by striking 
        ``To the extent determined feasible by the Secretary, such 
        survey shall measure'' and inserting ``Not less often than once 
        every 3 years the Secretary (through such survey or otherwise) 
        shall measure''.
            (3) Effective date.--By not later than September 30, 2003, 
        for application beginning October 1, 2004, the Secretary shall 
        first complete--
                    (A) the collection of data under paragraph (1); and
                    (B) the measurement under the third sentence of 
                section 1886(d)(3)(E), as amended by paragraph (2).

SEC. 305. PAYMENT FOR INPATIENT SERVICES OF REHABILITATION HOSPITALS.

    (a) Assistance With Administrative Costs Associated With Completion 
of Patient Assessment.--Section 1886( j)(3)(B) (42 U.S.C. 1395ww( 
j)(3)(B)) is amended by striking ``98 percent'' and inserting ``98 
percent for fiscal year 2001 and 100 percent for fiscal year 2002''.
    (b) Election To Apply Full Prospective Payment Rate Without Phase-
in.--
            (1) In general.--Paragraph (1) of section 1886( j) (42 
        U.S.C. 1395ww( j)) is amended--
                    (A) in subparagraph (A), by inserting ``other than a 
                facility making an election under subparagraph (F)'' 
                before ``in a cost reporting period'';
                    (B) in subparagraph (B), by inserting ``or, in the 
                case of a facility making an election under subparagraph 
                (F), for any cost reporting period described in such 
                subparagraph,'' after ``2002,''; and
                    (C) by adding at the end the following new 
                subparagraph:

[[Page 114 STAT. 2763A-496]]

                    ``(F) Election to apply full prospective payment 
                system.--A rehabilitation facility may elect, not later 
                than 30 days before its first cost reporting period for 
                which the payment methodology under this subsection 
                applies to the facility, to have payment made to the 
                facility under this subsection under the provisions of 
                subparagraph (B) (rather than subparagraph (A)) for each 
                cost reporting period to which such payment methodology 
                applies.''.
            (2) Clarification.--Paragraph (3)(B) of such section is 
        amended by inserting ``but not taking into account any payment 
        adjustment resulting from an election permitted under paragraph 
        (1)(F)'' after ``paragraphs (4) and (6)''.

    (c) Effective Date.--The amendments made by this section take effect 
as if included in the enactment of BBA.

SEC. 306. PAYMENT FOR INPATIENT SERVICES OF PSYCHIATRIC HOSPITALS.

    With respect to hospitals described in clause (i) of section 
1886(d)(1)(B) of the Social Security Act (42 U.S.C. 1395ww(d)(1)(B)) and 
psychiatric units described in the matter following clause (v) of such 
section, in making incentive payments to such hospitals under section 
1886(b)(1)(A) of such Act (42 U.S.C. 1395ww(b)(1)(A)) for cost reporting 
periods beginning on or after October 1, 2000, and before October 1, 
2001, the Secretary of Health and Human Services, in clause (ii) of such 
section, shall substitute ``3 percent'' for ``2 percent''.

SEC. 307. PAYMENT FOR INPATIENT SERVICES OF LONG-TERM CARE HOSPITALS.

    (a) Increased Target Amounts and Caps for Long-Term Care Hospitals 
Before Implementation of the Prospective Payment System.--
            (1) In general.--Section 1886(b)(3) (42 U.S.C. 1395ww(b)(3)) 
        is amended--
                    (A) in subparagraph (H)(ii)(III), by inserting 
                ``subject to subparagraph (J),'' after ``2002,''; and
                    (B) by adding at the end the following new 
                subparagraph:

    ``(J) For cost reporting periods beginning during fiscal year 2001, 
for a hospital described in subsection (d)(1)(B)(iv)--
            ``(i) the limiting or cap amount otherwise determined under 
        subparagraph (H) shall be increased by 2 percent; and
            ``(ii) the target amount otherwise determined under 
        subparagraph (A) shall be increased by 25 percent (subject to 
        the limiting or cap amount determined under subparagraph (H), as 
        increased by clause (i)).''.
            (2) Application.--The amendments made by subsection (a) and 
        by section 122 of BBRA (113 Stat. 1501A-331) shall not be taken 
        into account in the development and implementation of the 
        prospective payment system under section 123 of BBRA (113 Stat. 
        1501A-331).

    (b) Implementation of Prospective Payment System for Long-Term Care 
Hospitals.--
            (1) Modification of requirement.--In developing the 
        prospective payment system for payment for inpatient hospital 
        services provided in long-term care hospitals described in 
        section 1886(d)(1)(B)(iv) of the Social Security Act (42 U.S.C. 
        1395ww(d)(1)(B)(iv)) under the medicare program under title

[[Page 114 STAT. 2763A-497]]

        XVIII of such Act required under section 123 of BBRA, the 
        Secretary of Health and Human Services shall examine the 
        feasibility and the impact of basing payment under such a system 
        on the use of existing (or refined) hospital diagnosis-related 
        groups (DRGs) that have been modified to account for different 
        resource use of long-term care hospital patients as well as the 
        use of the most recently available hospital discharge data. The 
        Secretary shall examine and may provide for appropriate 
        adjustments to the long-term hospital payment system, including 
        adjustments to DRG weights, area wage adjustments, geographic 
        reclassification, outliers, updates, and a disproportionate 
        share adjustment consistent with section 1886(d)(5)(F) of the 
        Social Security Act (42 U.S.C. 1395ww(d)(5)(F)).
            (2) Default implementation of system based on existing drg 
        methodology.--If the Secretary is unable to implement the 
        prospective payment system under section 123 of the BBRA by 
        October 1, 2002, the Secretary shall implement a prospective 
        payment system for such hospitals that bases payment under such 
        a system using existing hospital diagnosis-related groups 
        (DRGs), modified where feasible to account for resource use of 
        long-term care hospital patients using the most recently 
        available hospital discharge data for such services furnished on 
        or after that date.

 Subtitle B--Adjustments to PPS Payments for Skilled Nursing Facilities

SEC. 311. ELIMINATION OF REDUCTION IN SKILLED NURSING FACILITY (SNF) 
            MARKET BASKET UPDATE IN 2001.

    (a) In General.--Section 1888(e)(4)(E)(ii) (42 U.S.C. 
1395yy(e)(4)(E)(ii)) is amended--
            (1) by redesignating subclauses (II) and (III) as subclauses 
        (III) and (IV), respectively;
            (2) in subclause (III), as so redesignated--
                    (A) by striking ``each of fiscal years 2001 and 
                2002'' and inserting ``each of fiscal years 2002 and 
                2003''; and
                    (B) by striking ``minus 1 percentage point'' and 
                inserting ``minus 0.5 percentage points''; and
            (3) by inserting after subclause (I) the following new 
        subclause:
                                    ``(II) for fiscal year 2001, the 
                                rate computed for the previous fiscal 
                                year increased by the skilled nursing 
                                facility market basket percentage change 
                                for the fiscal year;''.

    (b) Special Rule for Payment for Fiscal Year 2001.--Notwithstanding 
the amendments made by subsection (a), for purposes of making payments 
for covered skilled nursing facility services under section 1888(e) of 
the Social Security Act (42 U.S.C. 1395yy(e)) for fiscal year 2001, the 
Federal per diem rate referred to in paragraph (4)(E)(ii) of such 
section--
            (1) for the period beginning on October 1, 2000, and ending 
        on March 31, 2001, shall be the rate determined in accordance 
        with the law as in effect on the day before the date of the 
        enactment of this Act; and

[[Page 114 STAT. 2763A-498]]

            (2) for the period beginning on April 1, 2001, and ending on 
        September 30, 2001, shall be the rate that would have been 
        determined under such section if ``plus 1 percentage point'' had 
        been substituted for ``minus 1 percentage point'' under 
        subclause (II) of such paragraph (as in effect on the day before 
        the date of the enactment of this Act).

    (c) Relation to Temporary Increase in BBRA.--The increases provided 
under section 101 of BBRA (113 Stat. 1501A-325) shall be in addition to 
any increase resulting from the amendments made by subsection (a).
    (d) GAO Report on Adequacy of SNF Payment Rates.--Not later than 
July 1, 2002, the Comptroller General of the United States shall submit 
to Congress a report on the adequacy of medicare payment rates to 
skilled nursing facilities and the extent to which medicare contributes 
to the financial viability of such facilities. Such report shall take 
into account the role of private payors, medicaid, and case mix on the 
financial performance of these facilities, and shall include an analysis 
(by specific RUG classification) of the number and characteristics of 
such facilities.
    (e) HCFA Study of Classification Systems for SNF Residents.--
            (1) Study.--The Secretary of Health and Human Services shall 
        conduct a study of the different systems for categorizing 
        patients in medicare skilled nursing facilities in a manner that 
        accounts for the relative resource utilization of different 
        patient types.
            (2) Report.--Not later than January 1, 2005, the Secretary 
        shall submit to Congress a report on the study conducted under 
        subsection (a). Such report shall include such recommendations 
        regarding changes in law as may be appropriate.

SEC. 312. INCREASE IN NURSING COMPONENT OF PPS FEDERAL RATE.

    (a) In General.--The Secretary of Health and Human Services shall 
increase by 16.66 percent the nursing component of the case-mix adjusted 
Federal prospective payment rate specified in Tables 3 and 4 of the 
final rule published in the Federal Register by the Health Care 
Financing Administration on July 31, 2000 (65 Fed. Reg. 46770) and as 
subsequently updated, effective for services furnished on or after April 
1, 2001, and before October 1, 2002.
    (b) GAO Audit of Nursing Staff Ratios.--
            (1) Audit.--The Comptroller General of the United States 
        shall conduct an audit of nursing staffing ratios in a 
        representative sample of medicare skilled nursing facilities. 
        Such sample shall cover selected States and shall include broad 
        representation with respect to size, ownership, location, and 
        medicare volume. Such audit shall include an examination of 
        payroll records and medicaid cost reports of individual 
        facilities.
            (2) Report.--Not later than August 1, 2002, the Comptroller 
        General shall submit to Congress a report on the audits 
        conducted under paragraph (1). Such report shall include an 
        assessment of the impact of the increased payments under this 
        subtitle on increased nursing staff ratios and shall make 
        recommendations as to whether increased payments under 
        subsection (a) should be continued.

[[Page 114 STAT. 2763A-499]]

SEC. 313. APPLICATION OF SNF CONSOLIDATED BILLING REQUIREMENT LIMITED TO 
            PART A COVERED STAYS.

    (a) In General.--Section 1862(a)(18) (42 U.S.C. 1395y(a)(18)) is 
amended by striking ``or of a part of a facility that includes a skilled 
nursing facility (as determined under regulations),'' and inserting 
``during a period in which the resident is provided covered post-
hospital extended care services (or, for services described in section 
1861(s)(2)(D), which are furnished to such an individual without regard 
to such period),''.
    (b) Conforming Amendments.--(1) Section 1842(b)(6)(E) (42 U.S.C. 
1395u(b)(6)(E)) is amended--
            (A) by inserting ``by, or under arrangements made by, a 
        skilled nursing facility'' after ``furnished'';
            (B) by striking ``or of a part of a facility that includes a 
        skilled nursing facility (as determined under regulations)''; 
        and
            (C) by striking ``(without regard to whether or not the item 
        or service was furnished by the facility, by others under 
        arrangement with them made by the facility, under any other 
        contracting or consulting arrangement, or otherwise)''.

    (2) Section 1842(t) (42 U.S.C. 1395u(t)) is amended by striking ``by 
a physician'' and ``or of a part of a facility that includes a skilled 
nursing facility (as determined under regulations),''.
    (3) Section 1866(a)(1)(H)(ii)(I) (42 U.S.C. 1395cc(a)(1)(H)(ii)(I)) 
is amended by inserting after ``who is a resident of the skilled nursing 
facility'' the following: ``during a period in which the resident is 
provided covered post-hospital extended care services (or, for services 
described in section 1861(s)(2)(D), that are furnished to such an 
individual without regard to such period)''.
    (c) Effective Date.--The amendments made by subsections (a) and (b) 
shall apply to services furnished on or after January 1, 2001.
    (d) Oversight.--The Secretary of Health and Human Services, through 
the Office of the Inspector General in the Department of Health and 
Human Services or otherwise, shall monitor payments made under part B of 
the title XVIII of the Social Security Act for items and services 
furnished to residents of skilled nursing facilities during a time in 
which the residents are not being provided medicare covered post-
hospital extended care services to ensure that there is not duplicate 
billing for services or excessive services provided.

SEC. 314. ADJUSTMENT OF REHABILITATION RUGS TO CORRECT ANOMALY IN 
            PAYMENT RATES.

    (a) Adjustment for Rehabilitation RUGs.--
            (1) In general.--For purposes of computing payments for 
        covered skilled nursing facility services under paragraph (1) of 
        section 1888(e) of the Social Security Act (42 U.S.C. 1395yy(e)) 
        for such services furnished on or after April 1, 2001, and 
        before the date described in section 101(c)(2) of BBRA (113 
        Stat. 1501A-324), the Secretary of Health and Human Services 
        shall increase by 6.7 percent the adjusted Federal per diem rate 
        otherwise determined under paragraph (4) of such section (but 
        for this section) for covered skilled nursing facility services 
        for RUG-III rehabilitation groups described in paragraph (2) 
        furnished to an individual during the period

[[Page 114 STAT. 2763A-500]]

        in which such individual is classified in such a RUG-III 
        category.
            (2) Rehabilitation groups described.--The RUG-III 
        rehabilitation groups for which the adjustment described in 
        paragraph (1) applies are RUC, RUB, RUA, RVC, RVB, RVA, RHC, 
        RHB, RHA, RMC, RMB, RMA, RLB, and RLA, as specified in Tables 3 
        and 4 of the final rule published in the Federal Register by the 
        Health Care Financing Administration on July 31, 2000 (65 Fed. 
        Reg. 46770).

    (b) Correction With Respect to Rehabilitation RUGs.--
            (1) In general.--Section 101(b) of BBRA (113 Stat. 1501A-
        324) is amended by striking ``CA1, RHC, RMC, and RMB'' and 
        inserting ``and CA1''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply to services furnished on or after April 1, 2001.

    (c) Review by Office of Inspector General.--The Inspector General of 
the Department of Health and Human Services shall review the medicare 
payment structure for services classified within rehabilitation resource 
utilization groups (RUGs) (as in effect after the date of the enactment 
of the BBRA) to assess whether payment incentives exist for the delivery 
of inadequate care. Not later than October 1, 2001, the Inspector 
General shall submit to Congress a report on such review.

SEC. 315. ESTABLISHMENT OF PROCESS FOR GEOGRAPHIC RECLASSIFICATION.

    (a) In General.--The Secretary of Health and Human Services may 
establish a procedure for the geographic reclassification of a skilled 
nursing facility for purposes of payment for covered skilled nursing 
facility services under the prospective payment system established under 
section 1888(e) of the Social Security Act (42 U.S.C. 1395yy(e)). Such 
procedure may be based upon the method for geographic reclassifications 
for inpatient hospitals established under section 1886(d)(10) of the 
Social Security Act (42 U.S.C. 1395ww(d)(10)).
    (b) Requirement for Skilled Nursing Facility Wage Data.--In no case 
may the Secretary implement the procedure under subsection (a) before 
such time as the Secretary has collected data necessary to establish an 
area wage index for skilled nursing facilities based on wage data from 
such facilities.

                        Subtitle C--Hospice Care

SEC. 321. FIVE PERCENT INCREASE IN PAYMENT BASE.

    (a) In General.--Section 1814(i)(1)(C)(ii)(VI) (42 U.S.C. 
1395f(i)(1)(C)(ii)(VI)) is amended by inserting ``, plus, in the case of 
fiscal year 2001, 5.0 percentage points'' before the semicolon at the 
end.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to hospice care furnished on or after April 1, 2001. In applying 
clause (ii) of section 1814(i)(1)(C) of the Social Security Act (42 
U.S.C. 1395f(i)(1)(C)) beginning with fiscal year 2002, the payment 
rates in effect under such section during the period beginning on April 
1, 2001, and ending on September 30, shall be treated as the payment 
rates in effect during fiscal year 2001.

[[Page 114 STAT. 2763A-501]]

    (c) No Effect on BBRA Temporary Increase.--The provisions of this 
section shall have no effect on the application of section 131 of BBRA.
    (d) Application of Wage Index.--Notwithstanding section 1814(i) of 
the Social Security Act (42 U.S.C. 1395f(i)), the Secretary of Health 
and Human Services shall use 1.0043 as the hospice wage index value for 
the Wichita, Kansas Metropolitan Statistical Area in calculating 
payments under such section for a hospice program providing hospice care 
in such area during fiscal year 2000. The Secretary may provide for an 
appropriate timely lump sum payment to reflect the application of the 
previous sentence.
    (e) Technical Amendment.--Section 1814(a)(7)(A)(ii) (42 U.S.C. 
1395f(a)(7)(A)(ii)) is amended by striking the period at the end and 
inserting a semicolon.

SEC. 322. CLARIFICATION OF PHYSICIAN CERTIFICATION.

    (a) Certification Based on Normal Course of Illness.--
            (1) In general.--Section 1814(a) (42 U.S.C. 1395f(a)) is 
        amended by adding at the end the following new sentence: ``The 
        certification regarding terminal illness of an individual under 
        paragraph (7) shall be based on the physician's or medical 
        director's clinical judgment regarding the normal course of the 
        individual's illness.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply to certifications made on or after the date of the 
        enactment of this Act.

    (b) Study and Report on Physician Certification Requirement for 
Hospice Benefits.--
            (1) Study.--The Secretary of Health and Human Services shall 
        conduct a study to examine the appropriateness of the 
        certification regarding terminal illness of an individual under 
        section 1814(a)(7) of the Social Security Act (42 U.S.C. 
        1395f(a)(7)) that is required in order for such individual to 
        receive hospice benefits under the medicare program under title 
        XVIII of such Act. In conducting such study, the Secretary shall 
        take into account the effect of the amendment made by subsection 
        (a).
            (2) Report.--Not later than 2 years after the date of the 
        enactment of this Act, the Secretary of Health and Human 
        Services shall submit to Congress a report on the study 
        conducted under paragraph (1), together with any recommendations 
        for legislation that the Secretary deems appropriate.

SEC. 323. MEDPAC REPORT ON ACCESS TO, AND USE OF, HOSPICE BENEFIT.

    (a) In General.--The Medicare Payment Advisory Commission shall 
conduct a study to examine the factors affecting the use of hospice 
benefits under the medicare program under title XVIII of the Social 
Security Act, including a delay in the time (relative to death) of entry 
into a hospice program, and differences in such use between urban and 
rural hospice programs and based upon the presenting condition of the 
patient.
    (b) Report.--Not later than 18 months after the date of the 
enactment of this Act, the Commission shall submit to Congress a report 
on the study conducted under subsection (a), together with any 
recommendations for legislation that the Commission deems appropriate.

[[Page 114 STAT. 2763A-502]]

                      Subtitle D--Other Provisions

SEC. 331. RELIEF FROM MEDICARE PART A LATE ENROLLMENT PENALTY FOR GROUP 
            BUY-IN FOR STATE AND LOCAL RETIREES.

    (a) In General.--Section 1818 (42 U.S.C. 1395i-2) is amended--
            (1) in subsection (c)(6), by inserting before the semicolon 
        at the end the following: ``and shall be subject to reduction in 
        accordance with subsection (d)(6)''; and
            (2) by adding at the end of subsection (d) the following new 
        paragraph:

    ``(6)(A) In the case where a State, a political subdivision of a 
State, or an agency or instrumentality of a State or political 
subdivision thereof determines to pay, for the life of each individual, 
the monthly premiums due under paragraph (1) on behalf of each of the 
individuals in a qualified State or local government retiree group who 
meets the conditions of subsection (a), the amount of any increase 
otherwise applicable under section 1839(b) (as applied and modified by 
subsection (c)(6) of this section) with respect to the monthly premium 
for benefits under this part for an individual who is a member of such 
group shall be reduced by the total amount of taxes paid under section 
3101(b) of the Internal Revenue Code of 1986 by such individual and 
under section 3111(b) by the employers of such individual on behalf of 
such individual with respect to employment (as defined in section 
3121(b) of such Code).
    ``(B) For purposes of this paragraph, the term `qualified State or 
local government retiree group' means all of the individuals who retire 
prior to a specified date that is before January 1, 2002, from 
employment in one or more occupations or other broad classes of 
employees of--
            ``(i) the State;
            ``(ii) a political subdivision of the State; or
            ``(iii) an agency or instrumentality of the State or 
        political subdivision of the State.''.

    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to premiums for months beginning with January 1, 2002.

                 TITLE IV--PROVISIONS RELATING TO PART B

                Subtitle A--Hospital Outpatient Services

SEC. 401. REVISION OF HOSPITAL OUTPATIENT PPS PAYMENT UPDATE.

    (a) In General.--Section 1833(t)(3)(C)(iii) (42 U.S.C. 
1395l(t)(3)(C)(iii)) is amended by striking ``in each of 2000, 2001, and 
2002'' and inserting ``in each of 2000 and 2002''.
    (b) Adjustment for Case Mix Changes.--
            (1) In general.--Section 1833(t)(3)(C) (42 U.S.C. 
        1395l(t)(3)(C)) is amended--
                    (A) by redesignating clause (iii) as clause (iv); 
                and
                    (B) by inserting after clause (ii) the following new 
                clause:

[[Page 114 STAT. 2763A-503]]

                          ``(iii) Adjustment for service mix changes.--
                      Insofar as the Secretary determines that the 
                      adjustments for service mix under paragraph (2) 
                      for a previous year (or estimates that such 
                      adjustments for a future year) did (or are likely 
                      to) result in a change in aggregate payments under 
                      this subsection during the year that are a result 
                      of changes in the coding or classification of 
                      covered OPD services that do not reflect real 
                      changes in service mix, the Secretary may adjust 
                      the conversion factor computed under this 
                      subparagraph for subsequent years so as to 
                      eliminate the effect of such coding or 
                      classification changes.''.
            (2) Effective date.--The amendments made by paragraph (1) 
        shall take effect as if included in the enactment of BBA.

    (c) Special Rule for Payment for 2001.--Notwithstanding the 
amendment made by subsection (a), for purposes of making payments under 
section 1833(t) of the Social Security Act (42 U.S.C. 1395l(t)) for 
covered OPD services furnished during 2001, the medicare OPD fee 
schedule amount under such section--
            (1) for services furnished on or after January 1, 2001, and 
        before April 1, 2001, shall be the medicare OPD fee schedule 
        amount for 2001 as determined under the provisions of law in 
        effect on the day before the date of the enactment of this Act; 
        and
            (2) for services furnished on or after April 1, 2001, and 
        before January 1, 2002, shall be the fee schedule amount (as 
        determined taking into account the amendment made by subsection 
        (a)), increased by a transitional percentage allowance equal to 
        0.32 percent (to account for the timing of implementation of the 
        full market basket update).

SEC. 402. CLARIFYING PROCESS AND STANDARDS FOR DETERMINING ELIGIBILITY 
            OF DEVICES FOR PASS-THROUGH PAYMENTS UNDER HOSPITAL 
            OUTPATIENT PPS.

    (a) In General.--Section 1833(t)(6) (42 U.S.C. 1395l(t)(6)) is 
amended--
            (1) by redesignating subparagraphs (C) and (D) as 
        subparagraphs (D) and (E), respectively; and
            (2) by striking subparagraph (B) and inserting the following 
        new subparagraphs:
                    ``(B) Use of categories in determining eligibility 
                of a device for pass-through payments.--The following 
                provisions apply for purposes of determining whether a 
                medical device qualifies for additional payments under 
                clause (ii) or (iv) of subparagraph (A):
                          ``(i) Establishment of initial categories.--
                                    ``(I) In general.--The Secretary 
                                shall initially establish under this 
                                clause categories of medical devices 
                                based on type of device by April 1, 
                                2001. Such categories shall be 
                                established in a manner such that each 
                                medical device that meets the 
                                requirements of clause (ii) or (iv) of 
                                subparagraph (A) as of January 1, 2001, 
                                is included in such a category and no 
                                such device is included in more than one 
                                category. For purposes of the preceding 
                                sentence, whether a medical device meets 
                                such requirements as of such date shall 
                                be determined

[[Page 114 STAT. 2763A-504]]

                                on the basis of the program memoranda 
                                issued before such date.
                                    ``(II) Authorization of 
                                implementation other than through 
                                regulations.--The categories may be 
                                established under this clause by program 
                                memorandum or otherwise, after 
                                consultation with groups representing 
                                hospitals, manufacturers of medical 
                                devices, and other affected parties.
                          ``(ii) Establishing criteria for additional 
                      categories.--
                                    ``(I) In general.--The Secretary 
                                shall establish criteria that will be 
                                used for creation of additional 
                                categories (other than those established 
                                under clause (i)) through rulemaking 
                                (which may include use of an interim 
                                final rule with comment period).
                                    ``(II) Standard.--Such categories 
                                shall be established under this clause 
                                in a manner such that no medical device 
                                is described by more than one category. 
                                Such criteria shall include a test of 
                                whether the average cost of devices that 
                                would be included in a category and are 
                                in use at the time the category is 
                                established is not insignificant, as 
                                described in subparagraph (A)(iv)(II).
                                    ``(III) Deadline.--Criteria shall 
                                first be established under this clause 
                                by July 1, 2001. The Secretary may 
                                establish in compelling circumstances 
                                categories under this clause before the 
                                date such criteria are established.
                                    ``(IV) Adding categories.--The 
                                Secretary shall promptly establish a new 
                                category of medical devices under this 
                                clause for any medical device that meets 
                                the requirements of subparagraph (A)(iv) 
                                and for which none of the categories in 
                                effect (or that were previously in 
                                effect) is appropriate.
                          ``(iii) Period for which category is in 
                      effect.--A category of medical devices established 
                      under clause (i) or (ii) shall be in effect for a 
                      period of at least 2 years, but not more than 3 
                      years, that begins--
                                    ``(I) in the case of a category 
                                established under clause (i), on the 
                                first date on which payment was made 
                                under this paragraph for any device 
                                described by such category (including 
                                payments made during the period before 
                                April 1, 2001); and
                                    ``(II) in the case of any other 
                                category, on the first date on which 
                                payment is made under this paragraph for 
                                any medical device that is described by 
                                such category.
                          ``(iv) Requirements treated as met.--A medical 
                      device shall be treated as meeting the 
                      requirements of subparagraph (A)(iv), regardless 
                      of whether the device meets the requirement of 
                      subclause (I) of such subparagraph, if--
                                    ``(I) the device is described by a 
                                category established and in effect under 
                                clause (i); or

[[Page 114 STAT. 2763A-505]]

                                    ``(II) the device is described by a 
                                category established and in effect under 
                                clause (ii) and an application under 
                                section 515 of the Federal Food, Drug, 
                                and Cosmetic Act has been approved with 
                                respect to the device, or the device has 
                                been cleared for market under section 
                                510(k) of such Act, or the device is 
                                exempt from the requirements of section 
                                510(k) of such Act pursuant to 
                                subsection (l) or (m) of section 510 of 
                                such Act or section 520(g) of such Act.
                      Nothing in this clause shall be construed as 
                      requiring an application or prior approval (other 
                      than that described in subclause (II)) in order 
                      for a covered device described by a category to 
                      qualify for payment under this paragraph.
                    ``(C) Limited period of payment.--
                          ``(i) Drugs and biologicals.--The payment 
                      under this paragraph with respect to a drug or 
                      biological shall only apply during a period of at 
                      least 2 years, but not more than 3 years, that 
                      begins--
                                    ``(I) on the first date this 
                                subsection is implemented in the case of 
                                a drug or biological described in clause 
                                (i), (ii), or (iii) of subparagraph (A) 
                                and in the case of a drug or biological 
                                described in subparagraph (A)(iv) and 
                                for which payment under this part is 
                                made as an outpatient hospital service 
                                before such first date; or
                                    ``(II) in the case of a drug or 
                                biological described in subparagraph 
                                (A)(iv) not described in subclause (I), 
                                on the first date on which payment is 
                                made under this part for the drug or 
                                biological as an outpatient hospital 
                                service.
                          ``(ii) Medical devices.--Payment shall be made 
                      under this paragraph with respect to a medical 
                      device only if such device--
                                    ``(I) is described by a category of 
                                medical devices established and in 
                                effect under subparagraph (B); and
                                    ``(II) is provided as part of a 
                                service (or group of services) paid for 
                                under this subsection and provided 
                                during the period for which such 
                                category is in effect under such 
                                subparagraph.''.

    (b) Conforming Amendments.--Section 1833(t) (42 U.S.C. 1395l(t)) is 
further amended--
            (1) in paragraph (6)(A)(iv)(II), by striking ``the cost of 
        the device, drug, or biological'' and inserting ``the cost of 
        the drug or biological or the average cost of the category of 
        devices'';
            (2) in paragraph (6)(D) (as redesignated by subsection 
        (a)(1)), by striking ``subparagraph (D)(iii)'' in the matter 
        preceding clause (i) and inserting ``subparagraph (E)(iii)''; 
        and
            (3) in paragraph (12)(E), by striking ``additional payments 
        (consistent with paragraph (6)(B))'' and inserting ``additional 
        payments, the determination and deletion of initial and new 
        categories (consistent with subparagraphs (B) and (C) of 
        paragraph (6))''.

    (c) Effective Date.--The amendments made by this section take effect 
on the date of the enactment of this Act.

[[Page 114 STAT. 2763A-506]]

    (d) Transition.--
            (1) In general.--In the case of a medical device provided as 
        part of a service (or group of services) furnished during the 
        period before initial categories are implemented under 
        subparagraph (B)(i) of section 1833(t)(6) of the Social Security 
        Act (as amended by subsection (a)), payment shall be made for 
        such device under such section in accordance with the provisions 
        in effect before the date of the enactment of this Act. In 
        addition, beginning on the date that is 30 days after the date 
        of the enactment of this Act, payment shall be made for such a 
        device that is not included in a program memorandum described in 
        such subparagraph if the Secretary of Health and Human Services 
        determines that the device (including a device that would have 
        been included in such program memoranda but for the requirement 
        of subparagraph (A)(iv)(I) of that section) is likely to be 
        described by such an initial category.
            (2) Application of current process.--Notwithstanding any 
        other provision of law, the Secretary shall continue to accept 
        applications with respect to medical devices under the process 
        established pursuant to paragraph (6) of section 1833(t) of the 
        Social Security Act (as in effect on the day before the date of 
        the enactment of this Act) through December 1, 2000, and any 
        device--
                    (A) with respect to which an application was 
                submitted (pursuant to such process) on or before such 
                date; and
                    (B) that meets the requirements of clause (ii) or 
                (iv) of subparagraph (A) of such paragraph (as 
                determined pursuant to such process),
        shall be treated as a device with respect to which an initial 
        category is required to be established under subparagraph (B)(i) 
        of such paragraph (as amended by subsection (a)(2)).

SEC. 403. APPLICATION OF OPD PPS TRANSITIONAL CORRIDOR PAYMENTS TO 
            CERTAIN HOSPITALS THAT DID NOT SUBMIT A 1996 COST REPORT.

    (a) In General.--Section 1833(t)(7)(F)(ii)(I) (42 U.S.C. 
1395l(t)(7)(F)(ii)(I)) is amended by inserting ``(or in the case of a 
hospital that did not submit a cost report for such period, during the 
first subsequent cost reporting period ending before 2001 for which the 
hospital submitted a cost report)'' after ``1996''.
    (b) Effective Date.--The amendment made by subsection (a) shall take 
effect as if included in the enactment of BBRA.

SEC. 404. APPLICATION OF RULES FOR DETERMINING PROVIDER-BASED STATUS FOR 
            CERTAIN ENTITIES.

    (a) Grandfather.--Notwithstanding any other provision of law, 
effective October 1, 2000, for purposes of provider-based status under 
title XVIII of the Social Security Act--
            (1) any facility or organization that is treated as 
        provider-based in relation to a hospital or critical access 
        hospital under such title as of such date shall continue to be 
        treated as provider-based in relation to such hospital or 
        critical access hospital under such title until October 1, 2002; 
        and
            (2) the requirements, limitations, and exclusions specified 
        in subsections (d), (e), (f ), and (h) of section 413.65 of 
        title 42, Code of Federal Regulations, shall not apply to such 
        facility or organization in relation to such hospital or 
        critical access hospital until October 1, 2002.

[[Page 114 STAT. 2763A-507]]

    (b) Continuing Criteria for Meeting Geographic Location 
Requirement.--Except as provided in subsection (a), in making 
determinations of provider-based status on or after October 1, 2000, the 
following rules shall apply:
            (1) The facility or organization shall be treated as 
        satisfying any requirements and standards for geographic 
        location in relation to a hospital or a critical access hospital 
        if the facility or organization--
                    (A) satisfies the requirements of section 
                413.65(d)(7) of title 42, Code of Federal Regulations; 
                or
                    (B) is located not more than 35 miles from the main 
                campus of the hospital or critical access hospital.
            (2) The facility or organization shall be treated as 
        satisfying any of the requirements and standards for geographic 
        location in relation to a hospital or a critical access hospital 
        if the facility or organization is owned and operated by a 
        hospital or critical access hospital that--
                    (A) is owned or operated by a unit of State or local 
                government, is a public or private nonprofit corporation 
                that is formally granted governmental powers by a unit 
                of State or local government, or is a private hospital 
                that has a contract with a State or local government 
                that includes the operation of clinics located off the 
                main campus of the hospital to assure access in a well-
                defined service area to health care services for low-
                income individuals who are not entitled to benefits 
                under title XVIII (or medical assistance under a State 
                plan under title XIX) of the Social Security Act; and
                    (B) has a disproportionate share adjustment 
                percentage (as determined under section 1886(d)(5)(F) of 
                such Act (42 U.S.C. 1395ww(d)(5)(F))) greater than 11.75 
                percent or is described in clause (i)(II) of such 
                section.

    (c) Temporary Criteria.--For purposes of title XVIII of the Social 
Security Act, a facility or organization for which a determination of 
provider-based status in relation to a hospital or critical access 
hospital is requested on or after October 1, 2000, and before October 1, 
2002, shall be treated as having provider-based status in relation to 
such a hospital or a critical access hospital for any period before a 
determination is made with respect to such status pursuant to such 
request.
    (d) Definitions.--For purposes of this section, the terms 
``hospital'' and ``critical access hospital'' have the meanings given 
such terms in subsections (e) and (mm)(1), respectively, of section 1861 
of the Social Security Act (42 U.S.C. 1395x).

SEC. 405. TREATMENT OF CHILDREN'S HOSPITALS UNDER PROSPECTIVE PAYMENT 
            SYSTEM.

    (a) In General.--Section 1833(t) (42 U.S.C. 1395l(t)) is amended--
            (1) in the heading of paragraph (7)(D)(ii), by inserting 
        ``and children's hospitals'' after ``cancer hospitals''; and
            (2) in paragraphs (7)(D)(ii) and (11), by striking ``section 
        1886(d)(1)(B)(v)'' and inserting ``clause (iii) or (v) of 
        section 1886(d)(1)(B)''.

    (b) Effective Date.--The amendments made by subsection (a) shall 
apply as if included in the enactment of section 202 of BBRA (113 Stat. 
1501A-342).

[[Page 114 STAT. 2763A-508]]

SEC. 406. INCLUSION OF TEMPERATURE MONITORED CRYOABLATION IN 
            TRANSITIONAL PASS-THROUGH FOR CERTAIN MEDICAL DEVICES, 
            DRUGS, AND BIOLOGICALS UNDER OPD PPS.

    (a) In General.--Section 1833(t)(6)(A)(ii) (42 U.S.C. 
1395l(t)(6)(A)(ii)) is amended by inserting ``or temperature monitored 
cryoablation'' after ``device of brachytherapy''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to devices furnished on or after April 1, 2001.

         Subtitle B--Provisions Relating to Physicians' Services

SEC. 411. GAO STUDIES RELATING TO PHYSICIANS' SERVICES.

    (a) Study of Specialist Physicians' Services Furnished in 
Physicians' Offices and Hospital Outpatient Department Services.--
            (1) Study.--The Comptroller General of the United States 
        shall conduct a study to examine the appropriateness of 
        furnishing in physicians' offices specialist physicians' 
        services (such as gastrointestinal endoscopic physicians' 
        services) which are ordinarily furnished in hospital outpatient 
        departments. In conducting this study, the Comptroller General 
        shall--
                    (A) review available scientific and clinical 
                evidence about the safety of performing procedures in 
                physicians' offices and hospital outpatient departments;
                    (B) assess whether resource-based practice expense 
                relative values established by the Secretary of Health 
                and Human Services under the medicare physician fee 
                schedule under section 1848 of the Social Security Act 
                (42 U.S.C. 1395w-4) for such specialist physicians' 
                services furnished in physicians' offices and hospital 
                outpatient departments create an incentive to furnish 
                such services in physicians' offices instead of hospital 
                outpatient departments; and
                    (C) assess the implications for access to care for 
                medicare beneficiaries if the medicare program were not 
                to cover such services in physicians' offices.
            (2) Report.--Not later than July 1, 2001, the Comptroller 
        General shall submit to Congress a report on such study and 
        include such recommendations as the Comptroller General 
        determines to be appropriate.

    (b) Study of the Resource-Based Practice Expense System.--
            (1) Study.--The Comptroller General of the United States 
        shall conduct a study on the refinements to the practice expense 
        relative value units during the transition to a resource-based 
        practice expense system for physician payments under the 
        medicare program under title XVIII of the Social Security Act. 
        Such study shall examine how the Secretary of Health and Human 
        Services has accepted and used the practice expense data 
        submitted under section 212 of BBRA (113 Stat. 1501A-350).

[[Page 114 STAT. 2763A-509]]

            (2) Report.--Not later than July 1, 2001, the Comptroller 
        General shall submit to Congress a report on the study conducted 
        under paragraph (1) together with recommendations regarding--
                    (A) improvements in the process for acceptance and 
                use of practice expense data under section 212 of BBRA;
                    (B) any change or adjustment that is appropriate to 
                ensure full access to a spectrum of care for 
                beneficiaries under the medicare program; and
                    (C) the appropriateness of payments to physicians.

SEC. 412. PHYSICIAN GROUP PRACTICE DEMONSTRATION.

    (a) In General.--Title XVIII is amended by inserting after section 
1866 the following new sections:

 ``demonstration of application of physician volume increases to group 
                                practices

    ``Sec. 1866A. (a) Demonstration Program Authorized.--
            ``(1) In general.--The Secretary shall conduct demonstration 
        projects to test and, if proven effective, expand the use of 
        incentives to health care groups participating in the program 
        under this title that--
                    ``(A) encourage coordination of the care furnished 
                to individuals under the programs under parts A and B by 
                institutional and other providers, practitioners, and 
                suppliers of health care items and services;
                    ``(B) encourage investment in administrative 
                structures and processes to ensure efficient service 
                delivery; and
                    ``(C) reward physicians for improving health 
                outcomes.
        Such projects shall focus on the efficiencies of furnishing 
        health care in a group-practice setting as compared to the 
        efficiencies of furnishing health care in other health care 
        delivery systems.
            ``(2) Administration by contract.--Except as otherwise 
        specifically provided, the Secretary may administer the program 
        under this section in accordance with section 1866B.
            ``(3) Definitions.--For purposes of this section, terms have 
        the following meanings:
                    ``(A) Physician.--Except as the Secretary may 
                otherwise provide, the term `physician' means any 
                individual who furnishes services which may be paid for 
                as physicians' services under this title.
                    ``(B) Health care group.--The term `health care 
                group' means a group of physicians (as defined in 
                subparagraph (A)) organized at least in part for the 
                purpose of providing physicians' services under this 
                title. As the Secretary finds appropriate, a health care 
                group may include a hospital and any other individual or 
                entity furnishing items or services for which payment 
                may be made under this title that is affiliated with the 
                health care group under an arrangement structured so 
                that such individual or entity participates in a 
                demonstration under this section and will share in any 
                bonus earned under subsection (d).

    ``(b) Eligibility Criteria.--

[[Page 114 STAT. 2763A-510]]

            ``(1) In general.--The Secretary is authorized to establish 
        criteria for health care groups eligible to participate in a 
        demonstration under this section, including criteria relating to 
        numbers of health care professionals in, and of patients served 
        by, the group, scope of services provided, and quality of care.
            ``(2) Payment method.--A health care group participating in 
        the demonstration under this section shall agree with respect to 
        services furnished to beneficiaries within the scope of the 
        demonstration (as determined under subsection (c))--
                    ``(A) to be paid on a fee-for-service basis; and
                    ``(B) that payment with respect to all such services 
                furnished by members of the health care group to such 
                beneficiaries shall (where determined appropriate by the 
                Secretary) be made to a single entity.
            ``(3) Data reporting.--A health care group participating in 
        a demonstration under this section shall report to the Secretary 
        such data, at such times and in such format as the Secretary 
        requires, for purposes of monitoring and evaluation of the 
        demonstration under this section.

    ``(c) Patients Within Scope of Demonstration.--
            ``(1) In general.--The Secretary shall specify, in 
        accordance with this subsection, the criteria for identifying 
        those patients of a health care group who shall be considered 
        within the scope of the demonstration under this section for 
        purposes of application of subsection (d) and for assessment of 
        the effectiveness of the group in achieving the objectives of 
        this section.
            ``(2) Other criteria.--The Secretary may establish 
        additional criteria for inclusion of beneficiaries within a 
        demonstration under this section, which may include frequency of 
        contact with physicians in the group or other factors or 
        criteria that the Secretary finds to be appropriate.
            ``(3) Notice requirements.--In the case of each beneficiary 
        determined to be within the scope of a demonstration under this 
        section with respect to a specific health care group, the 
        Secretary shall ensure that such beneficiary is notified of the 
        incentives, and of any waivers of coverage or payment rules, 
        applicable to such group under such demonstration.

    ``(d) Incentives.--
            ``(1) Performance target.--The Secretary shall establish for 
        each health care group participating in a demonstration under 
        this section--
                    ``(A) a base expenditure amount, equal to the 
                average total payments under parts A and B for patients 
                served by the health care group on a fee-for-service 
                basis in a base period determined by the Secretary; and
                    ``(B) an annual per capita expenditure target for 
                patients determined to be within the scope of the 
                demonstration, reflecting the base expenditure amount 
                adjusted for risk and expected growth rates.
            ``(2) Incentive bonus.--The Secretary shall pay to each 
        participating health care group (subject to paragraph (4)) a 
        bonus for each year under the demonstration equal to a portion 
        of the medicare savings realized for such year relative to the 
        performance target.
            ``(3) Additional bonus for process and outcome 
        improvements.--At such time as the Secretary has established

[[Page 114 STAT. 2763A-511]]

        appropriate criteria based on evidence the Secretary determines 
        to be sufficient, the Secretary shall also pay to a 
        participating health care group (subject to paragraph (4)) an 
        additional bonus for a year, equal to such portion as the 
        Secretary may designate of the saving to the program under this 
        title resulting from process improvements made by and patient 
        outcome improvements attributable to activities of the group.
            ``(4) Limitation.--The Secretary shall limit bonus payments 
        under this section as necessary to ensure that the aggregate 
        expenditures under this title (inclusive of bonus payments) with 
        respect to patients within the scope of the demonstration do not 
        exceed the amount which the Secretary estimates would be 
        expended if the demonstration projects under this section were 
        not implemented.

        ``provisions for administration of demonstration program

    ``Sec. 1866B. (a) General Administrative Authority.--
            ``(1) Beneficiary eligibility.--Except as otherwise provided 
        by the Secretary, an individual shall only be eligible to 
        receive benefits under the program under section 1866A (in this 
        section referred to as the `demonstration program') if such 
        individual--
                    ``(A) is enrolled under the program under part B and 
                entitled to benefits under part A; and
                    ``(B) is not enrolled in a Medicare+Choice plan 
                under part C, an eligible organization under a contract 
                under section 1876 (or a similar organization operating 
                under a demonstration project authority), an 
                organization with an agreement under section 
                1833(a)(1)(A), or a PACE program under section 1894.
            ``(2) Secretary's discretion as to scope of program.--The 
        Secretary may limit the implementation of the demonstration 
        program to--
                    ``(A) a geographic area (or areas) that the 
                Secretary designates for purposes of the program, based 
                upon such criteria as the Secretary finds appropriate;
                    ``(B) a subgroup (or subgroups) of beneficiaries or 
                individuals and entities furnishing items or services 
                (otherwise eligible to participate in the program), 
                selected on the basis of the number of such participants 
                that the Secretary finds consistent with the effective 
                and efficient implementation of the program;
                    ``(C) an element (or elements) of the program that 
                the Secretary determines to be suitable for 
                implementation; or
                    ``(D) any combination of any of the limits described 
                in subparagraphs (A) through (C).
            ``(3) Voluntary receipt of items and services.--Items and 
        services shall be furnished to an individual under the 
        demonstration program only at the individual's election.
            ``(4) Agreements.--The Secretary is authorized to enter into 
        agreements with individuals and entities to furnish health care 
        items and services to beneficiaries under the demonstration 
        program.
            ``(5) Program standards and criteria.--The Secretary shall 
        establish performance standards for the demonstration program 
        including, as applicable, standards for quality of health

[[Page 114 STAT. 2763A-512]]

        care items and services, cost-effectiveness, beneficiary 
        satisfaction, and such other factors as the Secretary finds 
        appropriate. The eligibility of individuals or entities for the 
        initial award, continuation, and renewal of agreements to 
        provide health care items and services under the program shall 
        be conditioned, at a minimum, on performance that meets or 
        exceeds such standards.
            ``(6) Administrative review of decisions affecting 
        individuals and entities furnishing services.--An individual or 
        entity furnishing services under the demonstration program shall 
        be entitled to a review by the program administrator (or, if the 
        Secretary has not contracted with a program administrator, by 
        the Secretary) of a decision not to enter into, or to terminate, 
        or not to renew, an agreement with the entity to provide health 
        care items or services under the program.
            ``(7) Secretary's review of marketing materials.--An 
        agreement with an individual or entity furnishing services under 
        the demonstration program shall require the individual or entity 
        to guarantee that it will not distribute materials that market 
        items or services under the program without the Secretary's 
        prior review and approval.
            ``(8) Payment in full.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), an individual or entity receiving 
                payment from the Secretary under a contract or agreement 
                under the demonstration program shall agree to accept 
                such payment as payment in full, and such payment shall 
                be in lieu of any payments to which the individual or 
                entity would otherwise be entitled under this title.
                    ``(B) Collection of deductibles and coinsurance.--
                Such individual or entity may collect any applicable 
                deductible or coinsurance amount from a beneficiary.

    ``(b) Contracts for Program Administration.--
            ``(1) In general.--The Secretary may administer the 
        demonstration program through a contract with a program 
        administrator in accordance with the provisions of this 
        subsection.
            ``(2) Scope of program administrator contracts.--The 
        Secretary may enter into such contracts for a limited geographic 
        area, or on a regional or national basis.
            ``(3) Eligible contractors.--The Secretary may contract for 
        the administration of the program with--
                    ``(A) an entity that, under a contract under section 
                1816 or 1842, determines the amount of and makes 
                payments for health care items and services furnished 
                under this title; or
                    ``(B) any other entity with substantial experience 
                in managing the type of program concerned.
            ``(4) Contract award, duration, and renewal.--
                    ``(A)  In general.--A contract under this subsection 
                shall be for an initial term of up to three years, 
                renewable for additional terms of up to three years.
                    ``(B) Noncompetitive award and renewal for entities 
                administering part a or part b payments.--The Secretary 
                may enter or renew a contract under this subsection with 
                an entity described in paragraph (3)(A) without regard 
                to the requirements of section 5 of title 41, United 
                States Code.

[[Page 114 STAT. 2763A-513]]

            ``(5) Applicability of federal acquisition regulation.--The 
        Federal Acquisition Regulation shall apply to program 
        administration contracts under this subsection.
            ``(6) Performance standards.--The Secretary shall establish 
        performance standards for the program administrator including, 
        as applicable, standards for the quality and cost-effectiveness 
        of the program administered, and such other factors as the 
        Secretary finds appropriate. The eligibility of entities for the 
        initial award, continuation, and renewal of program 
        administration contracts shall be conditioned, at a minimum, on 
        performance that meets or exceeds such standards.
            ``(7) Functions of program administrator.--A program 
        administrator shall perform any or all of the following 
        functions, as specified by the Secretary:
                    ``(A) Agreements with entities furnishing health 
                care items and services.--Determine the qualifications 
                of entities seeking to enter or renew agreements to 
                provide services under the demonstration program, and as 
                appropriate enter or renew (or refuse to enter or renew) 
                such agreements on behalf of the Secretary.
                    ``(B) Establishment of payment rates.--Negotiate or 
                otherwise establish, subject to the Secretary's 
                approval, payment rates for covered health care items 
                and services.
                    ``(C) Payment of claims or fees.--Administer 
                payments for health care items or services furnished 
                under the program.
                    ``(D) Payment of bonuses.--Using such guidelines as 
                the Secretary shall establish, and subject to the 
                approval of the Secretary, make bonus payments as 
                described in subsection (c)(2)(A)(ii) to entities 
                furnishing items or services for which payment may be 
                made under the program.
                    ``(E) Oversight.--Monitor the compliance of 
                individuals and entities with agreements under the 
                program with the conditions of participation.
                    ``(F) Administrative review.--Conduct reviews of 
                adverse determinations specified in subsection (a)(6).
                    ``(G) Review of marketing materials.--Conduct a 
                review of marketing materials proposed by an entity 
                furnishing services under the program.
                    ``(H) Additional functions.--Perform such other 
                functions as the Secretary may specify.
            ``(8) Limitation of liability.--The provisions of section 
        1157(b) shall apply with respect to activities of contractors 
        and their officers, employees, and agents under a contract under 
        this subsection.
            ``(9) Information sharing.--Notwithstanding section 1106 and 
        section 552a of title 5, United States Code, the Secretary is 
        authorized to disclose to an entity with a program 
        administration contract under this subsection such information 
        (including medical information) on individuals receiving health 
        care items and services under the program as the entity may 
        require to carry out its responsibilities under the contract.

    ``(c) Rules Applicable to Both Program Agreements and Program 
Administration Contracts.--
            ``(1) Records, reports, and audits.--The Secretary is 
        authorized to require entities with agreements to provide health 
        care items or services under the demonstration program, and

[[Page 114 STAT. 2763A-514]]

        entities with program administration contracts under subsection 
        (b), to maintain adequate records, to afford the Secretary 
        access to such records (including for audit purposes), and to 
        furnish such reports and other materials (including audited 
        financial statements and performance data) as the Secretary may 
        require for purposes of implementation, oversight, and 
        evaluation of the program and of individuals' and entities' 
        effectiveness in performance of such agreements or contracts.
            ``(2) Bonuses.--Notwithstanding any other provision of law, 
        but subject to subparagraph (B)(ii), the Secretary may make 
        bonus payments under the demonstration program from the Federal 
        Health Insurance Trust Fund and the Federal Supplementary 
        Medical Insurance Trust Fund in amounts that do not exceed the 
        amounts authorized under the program in accordance with the 
        following:
                    ``(A) Payments to program administrators.--The 
                Secretary may make bonus payments under the program to 
                program administrators.
                    ``(B) Payments to entities furnishing services.--
                          ``(i) In general.--Subject to clause (ii), the 
                      Secretary may make bonus payments to individuals 
                      or entities furnishing items or services for which 
                      payment may be made under the demonstration 
                      program, or may authorize the program 
                      administrator to make such bonus payments in 
                      accordance with such guidelines as the Secretary 
                      shall establish and subject to the Secretary's 
                      approval.
                          ``(ii) Limitations.--The Secretary may 
                      condition such payments on the achievement of such 
                      standards related to efficiency, improvement in 
                      processes or outcomes of care, or such other 
                      factors as the Secretary determines to be 
                      appropriate.
            ``(3) Antidiscrimination limitation.--The Secretary shall 
        not enter into an agreement with an entity to provide health 
        care items or services under the demonstration program, or with 
        an entity to administer the program, unless such entity 
        guarantees that it will not deny, limit, or condition the 
        coverage or provision of benefits under the program, for 
        individuals eligible to be enrolled under such program, based on 
        any health status-related factor described in section 2702(a)(1) 
        of the Public Health Service Act.

    ``(d) Limitations on Judicial Review.--The following actions and 
determinations with respect to the demonstration program shall not be 
subject to review by a judicial or administrative tribunal:
            ``(1) Limiting the implementation of the program under 
        subsection (a)(2).
            ``(2) Establishment of program participation standards under 
        subsection (a)(5) or the denial or termination of, or refusal to 
        renew, an agreement with an entity to provide health care items 
        and services under the program.
            ``(3) Establishment of program administration contract 
        performance standards under subsection (b)(6), the refusal to 
        renew a program administration contract, or the noncompetitive 
        award or renewal of a program administration contract under 
        subsection (b)(4)(B).

[[Page 114 STAT. 2763A-515]]

            ``(4) Establishment of payment rates, through negotiation or 
        otherwise, under a program agreement or a program administration 
        contract.
            ``(5) A determination with respect to the program (where 
        specifically authorized by the program authority or by 
        subsection (c)(2))--
                    ``(A) as to whether cost savings have been achieved, 
                and the amount of savings; or
                    ``(B) as to whether, to whom, and in what amounts 
                bonuses will be paid.

    ``(e) Application Limited to Parts A and B.--None of the provisions 
of this section or of the demonstration program shall apply to the 
programs under part C.
    ``(f ) Reports to Congress.--Not later than two years after the date 
of the enactment of this section, and biennially thereafter for six 
years, the Secretary shall report to Congress on the use of authorities 
under the demonstration program. Each report shall address the impact of 
the use of those authorities on expenditures, access, and quality under 
the programs under this title.''.
    (b) GAO Report.--Not later than 2 years after the date on which the 
demonstration project under section 1866A of the Social Security Act, as 
added by subsection (a), is implemented, the Comptroller General of the 
United States shall submit to Congress a report on such demonstration 
project. The report shall include such recommendations with respect to 
changes to the demonstration project that the Comptroller General 
determines appropriate.

SEC. 413. STUDY ON ENROLLMENT PROCEDURES FOR GROUPS THAT RETAIN 
            INDEPENDENT CONTRACTOR PHYSICIANS.

    (a) In General.--The Comptroller General of the United States shall 
conduct a study of the current medicare enrollment process for groups 
that retain independent contractor physicians with particular emphasis 
on hospital-based physicians, such as emergency department staffing 
groups. In conducting the evaluation, the Comptroller General shall 
consult with groups that retain independent contractor physicians and 
shall--
            (1) review the issuance of individual medicare provider 
        numbers and the possible medicare program integrity 
        vulnerabilities of the current process;
            (2) review direct and indirect costs associated with the 
        current process incurred by the medicare program and groups that 
        retain independent contractor physicians;
            (3) assess the effect on program integrity by the enrollment 
        of groups that retain independent contractor hospital-based 
        physicians; and
            (4) develop suggested procedures for the enrollment of these 
        groups.

    (b) Report.--Not later than 1 year after the date of the enactment 
of this Act, the Comptroller General shall submit to Congress a report 
on the study conducted under subsection (a).

[[Page 114 STAT. 2763A-516]]

                       Subtitle C--Other Services

SEC. 421. ONE-YEAR EXTENSION OF MORATORIUM ON THERAPY CAPS; REPORT ON 
            STANDARDS FOR SUPERVISION OF PHYSICAL THERAPY ASSISTANTS.

    (a) In General.--Section 1833(g)(4) (42 U.S.C. 1395l(g)(4)) is 
amended by striking ``2000 and 2001.'' and inserting ``2000, 2001, and 
2002.''.
    (b) Conforming Amendment To Continue Focused Medical Reviews of 
Claims During Moratorium Period.--Section 221(a)(2) of BBRA (113 Stat. 
1501A-351) is amended by striking ``(under the amendment made by 
paragraph (1)(B))''.
    (c) Study on Standards for Supervision of Physical Therapist 
Assistants.--
            (1) Study.--The Secretary of Health and Human Services shall 
        conduct a study of the implications--
                    (A) of eliminating the ``in the room'' supervision 
                requirement for medicare payment for services of 
                physical therapy assistants who are supervised by 
                physical therapists; and
                    (B) of such requirement on the cap imposed under 
                section 1833(g) of the Social Security Act (42 U.S.C. 
                1395l(g)) on physical therapy services.
            (2) Report.--Not later than 18 months after the date of the 
        enactment of this Act, the Secretary shall submit to Congress a 
        report on the study conducted under paragraph (1).

SEC. 422. UPDATE IN RENAL DIALYSIS COMPOSITE RATE.

    (a) Update.--
            (1) In general.--The last sentence of section 1881(b)(7) (42 
        U.S.C. 1395rr(b)(7)) is amended by striking ``for such services 
        furnished on or after January 1, 2001, by 1.2 percent'' and 
        inserting ``for such services furnished on or after January 1, 
        2001, by 2.4 percent''.
            (2) Prohibition on exceptions.--
                    (A) In general.--Subject to subparagraphs (B) and 
                (C), the Secretary of Health and Human Services may not 
                provide for an exception under section 1881(b)(7) of the 
                Social Security Act (42 U.S.C. 1395rr(b)(7)) on or after 
                December 31, 2000.
                    (B) Deadline for new applications.--In the case of a 
                facility that during 2000 did not file for an exception 
                rate under such section, the facility may submit an 
                application for an exception rate by not later than July 
                1, 2001.
                    (C) Protection of approved exception rates.--Any 
                exception rate under such section in effect on December 
                31, 2000 (or, in the case of an application under 
                subparagraph (B), as approved under such application) 
                shall continue in effect so long as such rate is greater 
                than the composite rate as updated by the amendment made 
                by paragraph (1).

    (b) Development of ESRD Market Basket.--
            (1) Development.--The Secretary of Health and Human Services 
        shall collect data and develop an ESRD market basket whereby the 
        Secretary can estimate, before the beginning of a year, the 
        percentage by which the costs for the year of

[[Page 114 STAT. 2763A-517]]

        the mix of labor and nonlabor goods and services included in the 
        ESRD composite rate under section 1881(b)(7) of the Social 
        Security Act (42 U.S.C. 1395rr(b)(7)) will exceed the costs of 
        such mix of goods and services for the preceding year. In 
        developing such index, the Secretary may take into account 
        measures of changes in--
                    (A) technology used in furnishing dialysis services;
                    (B) the manner or method of furnishing dialysis 
                services; and
                    (C) the amounts by which the payments under such 
                section for all services billed by a facility for a year 
                exceed the aggregate allowable audited costs of such 
                services for such facility for such year.
            (2) Report.--The Secretary of Health and Human Services 
        shall submit to Congress a report on the index developed under 
        paragraph (1) no later than July 1, 2002, and shall include in 
        the report recommendations on the appropriateness of an annual 
        or periodic update mechanism for renal dialysis services under 
        the medicare program under title XVIII of the Social Security 
        Act based on such index.

    (c) Inclusion of Additional Services in Composite Rate.--
            (1) Development.--The Secretary of Health and Human Services 
        shall develop a system which includes, to the maximum extent 
        feasible, in the composite rate used for payment under section 
        1881(b)(7) of the Social Security Act (42 U.S.C. 1395rr(b)(7)), 
        payment for clinical diagnostic laboratory tests and drugs 
        (including drugs paid under section 1881(b)(11)(B) of such Act 
        (42 U.S.C. 1395rr(b)(11)(B)) that are routinely used in 
        furnishing dialysis services to medicare beneficiaries but which 
        are currently separately billable by renal dialysis facilities.
            (2) Report.--The Secretary shall include, as part of the 
        report submitted under subsection (b)(2), a report on the system 
        developed under paragraph (1) and recommendations on the 
        appropriateness of incorporating the system into medicare 
        payment for renal dialysis services.

    (d) GAO Study on Access to Services.--
            (1) Study.--The Comptroller General of the United States 
        shall study access of medicare beneficiaries to renal dialysis 
        services. Such study shall include whether there is a sufficient 
        supply of facilities to furnish needed renal dialysis services, 
        whether medicare payment levels are appropriate, taking into 
        account audited costs of facilities for all services furnished, 
        to ensure continued access to such services, and improvements in 
        access (and quality of care) that may result in the increased 
        use of long nightly and short daily hemodialysis modalities.
            (2) Report.--Not later than January 1, 2003, the Comptroller 
        General shall submit to Congress a report on the study conducted 
        under paragraph (1).

    (e) Special Rule for Payment for 2001.--Notwithstanding the 
amendment made by subsection (a)(1), for purposes of making payments 
under section 1881(b) of the Social Security Act (42 U.S.C. 1395rr(b)) 
for dialysis services furnished during 2001, the composite rate payment 
under paragraph (7) of such section--
            (1) for services furnished on or after January 1, 2001, and 
        before April 1, 2001, shall be the composite rate payment

[[Page 114 STAT. 2763A-518]]

        determined under the provisions of law in effect on the day 
        before the date of the enactment of this Act; and
            (2) for services furnished on or after April 1, 2001, and 
        before January 1, 2002, shall be the composite rate payment (as 
        determined taking into account the amendment made by subsection 
        (a)(1)) increased by a transitional percentage allowance equal 
        to 0.39 percent (to account for the timing of implementation of 
        the CPI update).

SEC. 423. PAYMENT FOR AMBULANCE SERVICES.

    (a) Restoration of Full CPI Increase for 2001.--
            (1) In general.--Section 1834(l)(3) (42 U.S.C. 1395m(l)(3)) 
        is amended by striking ``reduced in the case of 2001 and 2002'' 
        each place it appears and inserting ``reduced in the case of 
        2002''.
            (2) Special rule for payment for 2001.--Notwithstanding the 
        amendment made by paragraph (1), for purposes of making payments 
        for ambulance services under part B of title XVIII of the Social 
        Security Act, for services furnished during 2001, the 
        ``percentage increase in the consumer price index'' specified in 
        section 1834(l)(3)(B) of such Act (42 U.S.C. 1395m(l)(3)(B))--
                    (A) for services furnished on or after January 1, 
                2001, and before July 1, 2001, shall be the percentage 
                increase for 2001 as determined under the provisions of 
                law in effect on the day before the date of the 
                enactment of this Act; and
                    (B) for services furnished on or after July 1, 2001, 
                and before January 1, 2002, shall be equal to 4.7 
                percent.

    (b) Mileage Payments.--
            (1) In general.--Section 1834(l)(2)(E) (42 U.S.C. 
        1395m(l)(2)(E)) is amended by inserting before the period at the 
        end the following: ``, except that such phase-in shall provide 
        for full payment of any national mileage rate for ambulance 
        services provided by suppliers that are paid by carriers in any 
        of the 50 States where payment by a carrier for such services 
        for all such suppliers in such State did not, prior to the 
        implementation of the fee schedule, include a separate amount 
        for all mileage within the county from which the beneficiary is 
        transported''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply to services furnished on or after July 1, 2001.

SEC. 424. AMBULATORY SURGICAL CENTERS.

    (a) Delay in Implementation of Prospective Payment System.--The 
Secretary of Health and Human Services may not implement a revised 
prospective payment system for services of ambulatory surgical 
facilities under section 1833(i) of the Social Security Act (42 U.S.C. 
1395l(i)) before January 1, 2002.
    (b) Extending Phase-in to 4 Years.--Section 226 of the BBRA (113 
Stat. 1501A-354) is amended by striking paragraphs (1) and (2) and 
inserting the following:
            ``(1) in the first year of its implementation, only a 
        proportion (specified by the Secretary and not to exceed one-
        fourth) of the payment for such services shall be made in 
        accordance with such system and the remainder shall be made in 
        accordance with current regulations; and
            ``(2) in each of the following 2 years a proportion 
        (specified by the Secretary and not to exceed one-half and 
        three-fourths,

[[Page 114 STAT. 2763A-519]]

         respectively) of the payment for such services shall be made 
        under such system and the remainder shall be made in accordance 
        with current regulations.''.

    (c) Deadline for Use of 1999 or Later Cost Surveys.--Section 226 of 
BBRA (113 Stat. 1501A-354) is amended by adding at the end the 
following:
``By not later than January 1, 2003, the Secretary shall incorporate 
data from a 1999 medicare cost survey or a subsequent cost survey for 
purposes of implementing or revising such system.''.

SEC. 425. FULL UPDATE FOR DURABLE MEDICAL EQUIPMENT.

    (a) In General.--Section 1834(a)(14) (42 U.S.C. 1395m(a)(14)) is 
amended--
            (1) by redesignating subparagraph (D) as subparagraph (F);
            (2) in subparagraph (C)--
                    (A) by striking ``through 2002'' and inserting 
                ``through 2000''; and
                    (B) by striking ``and'' at the end; and
            (3) by inserting after subparagraph (C) the following new 
        subparagraphs:
                    ``(D) for 2001, the percentage increase in the 
                consumer price index for all urban consumers (U.S. city 
                average) for the 12-month period ending with June 2000;
                    ``(E) for 2002, 0 percentage points; and''.

    (b) Special Rule for Payment for 2001.--Notwithstanding the 
amendments made by subsection (a), for purposes of making payments for 
durable medical equipment under section 1834(a) of the Social Security 
Act (42 U.S.C. 1395m(a)), other than for oxygen and oxygen equipment 
specified in paragraph (9) of such section, the payment basis recognized 
for 2001 under such section--
            (1) for items furnished on or after January 1, 2001, and 
        before July 1, 2001, shall be the payment basis for 2001 as 
        determined under the provisions of law in effect on the day 
        before the date of the enactment of this Act (including the 
        application of section 228(a)(1) of BBRA); and
            (2) for items furnished on or after July 1, 2001, and before 
        January 1, 2002, shall be the payment basis that is determined 
        under such section 1834(a) if such section 228(a)(1) did not 
        apply and taking into account the amendment made by subsection 
        (a), increased by a transitional percentage allowance equal to 
        3.28 percent (to account for the timing of implementation of the 
        CPI update).

SEC. 426. FULL UPDATE FOR ORTHOTICS AND PROSTHETICS.

    (a) In General.--Section 1834(h)(4)(A) (42 U.S.C. 1395m(h)(4)(A)) is 
amended--
            (1) by redesignating clause (vi) as clause (viii);
            (2) in clause (v)--
                    (A) by striking ``through 2002'' and inserting 
                ``through 2000''; and
                    (B) by striking ``and'' at the end; and
            (3) by inserting after clause (v) the following new clause:
                          ``(vi) for 2001, the percentage increase in 
                      the consumer price index for all urban consumers 
                      (U.S. city average) for the 12-month period ending 
                      with June 2000;
                          ``(vii) for 2002, 1 percent; and''.

[[Page 114 STAT. 2763A-520]]

    (b) Special Rule for Payment for 2001.--Notwithstanding the 
amendments made by subsection (a), for purposes of making payments for 
prosthetic devices and orthotics and prosthetics (as defined in 
subparagraphs (B) and (C) of paragraph (4) of section 1834(h) of the 
Social Security Act (42 U.S.C. 1395m(h)) under such section, the payment 
basis recognized for 2001 under paragraph (2) of such section--
            (1) for items furnished on or after January 1, 2001, and 
        before July 1, 2001, shall be the payment basis for 2001 as 
        determined under the provisions of law in effect on the day 
        before the date of the enactment of this Act; and
            (2) for items furnished on or after July 1, 2001, and before 
        January 1, 2002, shall be the payment basis that is determined 
        under such section taking into account the amendments made by 
        subsection (a), increased by a transitional percentage allowance 
        equal to 2.6 percent (to account for the timing of 
        implementation of the CPI update).

SEC. 427. ESTABLISHMENT OF SPECIAL PAYMENT PROVISIONS AND REQUIREMENTS 
            FOR PROSTHETICS AND CERTAIN CUSTOM-FABRICATED ORTHOTIC 
            ITEMS.

    (a) In General.--Section 1834(h)(1) (42 U.S.C. 1395m(h)(1)) is 
amended by adding at the end the following:
                    ``(F) Special payment rules for certain prosthetics 
                and custom-fabricated orthotics.--
                          ``(i) In general.--No payment shall be made 
                      under this subsection for an item of custom-
                      fabricated orthotics described in clause (ii) or 
                      for an item of prosthetics unless such item is--
                                    ``(I) furnished by a qualified 
                                practitioner; and
                                    ``(II) fabricated by a qualified 
                                practitioner or a qualified supplier at 
                                a facility that meets such criteria as 
                                the Secretary determines appropriate.
                          ``(ii) Description of custom-fabricated 
                      item.--
                                    ``(I) In general.--An item described 
                                in this clause is an item of custom-
                                fabricated orthotics that requires 
                                education, training, and experience to 
                                custom-fabricate and that is included in 
                                a list established by the Secretary in 
                                subclause (II). Such an item does not 
                                include shoes and shoe inserts.
                                    ``(II) List of items.--The 
                                Secretary, in consultation with 
                                appropriate experts in orthotics 
                                (including national organizations 
                                representing manufacturers of 
                                orthotics), shall establish and update 
                                as appropriate a list of items to which 
                                this subparagraph applies. No item may 
                                be included in such list unless the item 
                                is individually fabricated for the 
                                patient over a positive model of the 
                                patient.
                          ``(iii) Qualified practitioner defined.--In 
                      this subparagraph, the term `qualified 
                      practitioner' means a physician or other 
                      individual who--
                                    ``(I) is a qualified physical 
                                therapist or a qualified occupational 
                                therapist;
                                    ``(II) in the case of a State that 
                                provides for the licensing of orthotics 
                                and prosthetics, is

[[Page 114 STAT. 2763A-521]]

                                licensed in orthotics or prosthetics by 
                                the State in which the item is supplied; 
                                or
                                    ``(III) in the case of a State that 
                                does not provide for the licensing of 
                                orthotics and prosthetics, is 
                                specifically trained and educated to 
                                provide or manage the provision of 
                                prosthetics and custom-designed or -
                                fabricated orthotics, and is certified 
                                by the American Board for Certification 
                                in Orthotics and Prosthetics, Inc. or by 
                                the Board for Orthotist/Prosthetist 
                                Certification, or is credentialed and 
                                approved by a program that the Secretary 
                                determines, in consultation with 
                                appropriate experts in orthotics and 
                                prosthetics, has training and education 
                                standards that are necessary to provide 
                                such prosthetics and orthotics.
                          ``(iv) Qualified supplier defined.--In this 
                      subparagraph, the term `qualified supplier' means 
                      any entity that is accredited by the American 
                      Board for Certification in Orthotics and 
                      Prosthetics, Inc. or by the Board for Orthotist/
                      Prosthetist Certification, or accredited and 
                      approved by a program that the Secretary 
                      determines has accreditation and approval 
                      standards that are essentially equivalent to those 
                      of such Board.''.

    (b) Effective Date.--Not later than 1 year after the date of the 
enactment of this Act, the Secretary of Health and Human Services shall 
promulgate revised regulations to carry out the amendment made by 
subsection (a) using a negotiated rulemaking process under subchapter 
III of chapter 5 of title 5, United States Code.
    (c) GAO Study and Report.--
            (1) Study.--The Comptroller General of the United States 
        shall conduct a study on HCFA Ruling 96-1, issued on September 
        1, 1996, with respect to distinguishing orthotics from durable 
        medical equipment under the medicare program under title XVIII 
        of the Social Security Act. The study shall assess the following 
        matters:
                    (A) The compliance of the Secretary of Health and 
                Human Services with the Administrative Procedures Act 
                (under chapter 5 of title 5, United States Code) in 
                making such ruling.
                    (B) The potential impact of such ruling on the 
                health care furnished to medicare beneficiaries under 
                the medicare program, especially those beneficiaries 
                with degenerative musculoskeletal conditions.
                    (C) The potential for fraud and abuse under the 
                medicare program if payment were provided for orthotics 
                used as a component of durable medical equipment only 
                when made under the special payment provision for 
                certain prosthetics and custom-fabricated orthotics 
                under section 1834(h)(1)(F) of the Social Security Act, 
                as added by subsection (a) and furnished by qualified 
                practitioners under that section.
                    (D) The impact on payments under titles XVIII and 
                XIX of the Social Security Act if such ruling were 
                overturned.

[[Page 114 STAT. 2763A-522]]

            (2) Report.--Not later than 6 months after the date of the 
        enactment of this Act, the Comptroller General shall submit to 
        Congress a report on the study conducted under paragraph (1).

SEC. 428. REPLACEMENT OF PROSTHETIC DEVICES AND PARTS.

    (a) In General.--Section 1834(h)(1) (42 U.S.C. 1395m(h)(1)), as 
amended by section 427(a), is further amended by adding at the end the 
following new subparagraph:
                    ``(G) Replacement of prosthetic devices and parts.--
                          ``(i) In general.--Payment shall be made for 
                      the replacement of prosthetic devices which are 
                      artificial limbs, or for the replacement of any 
                      part of such devices, without regard to continuous 
                      use or useful lifetime restrictions if an ordering 
                      physician determines that the provision of a 
                      replacement device, or a replacement part of such 
                      a device, is necessary because of any of the 
                      following:
                                    ``(I) A change in the physiological 
                                condition of the patient.
                                    ``(II) An irreparable change in the 
                                condition of the device, or in a part of 
                                the device.
                                    ``(III) The condition of the device, 
                                or the part of the device, requires 
                                repairs and the cost of such repairs 
                                would be more than 60 percent of the 
                                cost of a replacement device, or, as the 
                                case may be, of the part being replaced.
                          ``(ii) Confirmation may be required if device 
                      or part being replaced is less than 3 years old.--
                      If a physician determines that a replacement 
                      device, or a replacement part, is necessary 
                      pursuant to clause (i)--
                                    ``(I) such determination shall be 
                                controlling; and
                                    ``(II) such replacement device or 
                                part shall be deemed to be reasonable 
                                and necessary for purposes of section 
                                1862(a)(1)(A);
                      except that if the device, or part, being replaced 
                      is less than 3 years old (calculated from the date 
                      on which the beneficiary began to use the device 
                      or part), the Secretary may also require 
                      confirmation of necessity of the replacement 
                      device or replacement part, as the case may be.''.

    (b) Preemption of Rule.--The provisions of section 1834(h)(1)(G) as 
added by subsection (a) shall supersede any rule that as of the date of 
the enactment of this Act may have applied a 5-year replacement rule 
with regard to prosthetic devices.
    (c) Effective Date.--The amendment made by subsection (a) shall 
apply to items replaced on or after April 1, 2001.

SEC. 429. REVISED PART B PAYMENT FOR DRUGS AND BIOLOGICALS AND RELATED 
            SERVICES.

    (a) Recommendations for Revised Payment Methodology for Drugs and 
Biologicals.--
            (1) Study.--
                    (A) In general.--The Comptroller General of the 
                United States shall conduct a study on the reimbursement

[[Page 114 STAT. 2763A-523]]

                for drugs and biologicals under the current medicare 
                payment methodology (provided under section 1842(o) of 
                the Social Security Act (42 U.S.C. 1395u(o))) and for 
                related services under part B of title XVIII of such 
                Act. In the study, the Comptroller General shall--
                          (i) identify the average prices at which such 
                      drugs and biologicals are acquired by physicians 
                      and other suppliers;
                          (ii) quantify the difference between such 
                      average prices and the reimbursement amount under 
                      such section; and
                          (iii) determine the extent to which (if any) 
                      payment under such part is adequate to compensate 
                      physicians, providers of services, or other 
                      suppliers of such drugs and biologicals for costs 
                      incurred in the administration, handling, or 
                      storage of such drugs or biologicals.
                    (B) Consultation.--In conducting the study under 
                subparagraph (A), the Comptroller General shall consult 
                with physicians, providers of services, and suppliers of 
                drugs and biologicals under the medicare program under 
                title XVIII of such Act, as well as other organizations 
                involved in the distribution of such drugs and 
                biologicals to such physicians, providers of services, 
                and suppliers.
            (2) Report.--Not later than 9 months after the date of the 
        enactment of this Act, the Comptroller General shall submit to 
        Congress and to the Secretary of Health and Human Services a 
        report on the study conducted under this subsection, and shall 
        include in such report recommendations for revised payment 
        methodologies described in paragraph (3).
            (3) Recommendations for revised payment methodologies.--
                    (A) In general.--The Comptroller General shall 
                provide specific recommendations for revised payment 
                methodologies for reimbursement for drugs and 
                biologicals and for related services under the medicare 
                program. The Comptroller General may include in the 
                recommendations--
                          (i) proposals to make adjustments under 
                      subsection (c) of section 1848 of the Social 
                      Security Act (42 U.S.C. 1395w-4) for the practice 
                      expense component of the physician fee schedule 
                      under such section for the costs incurred in the 
                      administration, handling, or storage of certain 
                      categories of such drugs and biologicals, if 
                      appropriate; and
                          (ii) proposals for new payments to providers 
                      of services or suppliers for such costs, if 
                      appropriate.
                    (B) Ensuring patient access to care.--In making 
                recommendations under this paragraph, the Comptroller 
                General shall ensure that any proposed revised payment 
                methodology is designed to ensure that medicare 
                beneficiaries continue to have appropriate access to 
                health care services under the medicare program.
                    (C) Matters considered.--In making recommendations 
                under this paragraph, the Comptroller General shall 
                consider--

[[Page 114 STAT. 2763A-524]]

                          (i) the method and amount of reimbursement for 
                      similar drugs and biologicals made by large group 
                      health plans;
                          (ii) as a result of any revised payment 
                      methodology, the potential for patients to receive 
                      inpatient or outpatient hospital services in lieu 
                      of services in a physician's office; and
                          (iii) the effect of any revised payment 
                      methodology on the delivery of drug therapies by 
                      hospital outpatient departments.
                    (D) Coordination with bbra study.--In making 
                recommendations under this paragraph, the Comptroller 
                General shall conclude and take into account the results 
                of the study provided for under section 213(a) of BBRA 
                (113 Stat. 1501A-350).

    (b) Implementation of New Payment Methodology.--
            (1) In general.--Notwithstanding any other provision of law, 
        based on the recommendations contained in the report under 
        subsection (a), the Secretary of Health and Human Services, 
        subject to paragraph (2), shall revise the payment methodology 
        under section 1842(o) of the Social Security Act (42 U.S.C. 
        1395u(o)) for drugs and biologicals furnished under part B of 
        the medicare program. To the extent the Secretary determines 
        appropriate, the Secretary may provide for the adjustments to 
        payments amounts referred to in subsection (a)(3)(A)(i) or 
        additional payments referred to in subsection (a)(2)(A)(ii).
            (2) Limitation.--In revising the payment methodology under 
        paragraph (1), in no case may the estimated aggregate payments 
        for drugs and biologicals under the revised system (including 
        additional payments referred to in subsection (a)(3)(A)(ii)) 
        exceed the aggregate amount of payment for such drugs and 
        biologicals, as projected by the Secretary, that would have been 
        made under the payment methodology in effect under such section 
        1842(o).

    (c) Moratorium on Decreases in Payment Rates.--Notwithstanding any 
other provision of law, effective for drugs and biologicals furnished on 
or after January 1, 2001, the Secretary may not directly or indirectly 
decrease the rates of reimbursement (in effect as of such date) for 
drugs and biologicals under the current medicare payment methodology 
(provided under section 1842(o) of the Social Security Act (42 U.S.C. 
1395u(o))) until such time as the Secretary has reviewed the report 
submitted under subsection (a)(2).

SEC. 430. CONTRAST ENHANCED DIAGNOSTIC PROCEDURES UNDER HOSPITAL 
            PROSPECTIVE PAYMENT SYSTEM.

    (a) Separate Classification.--Section 1833(t)(2) (42 U.S.C. 
1395l(t)(2)) is amended--
            (1) by striking ``and'' at the end of subparagraph (E);
            (2) by striking the period at the end of subparagraph (F) 
        and inserting ``; and''; and
            (3) by inserting after subparagraph (F) the following new 
        subparagraph:
                    ``(G) the Secretary shall create additional groups 
                of covered OPD services that classify separately those 
                procedures that utilize contrast agents from those that 
                do not.''.

[[Page 114 STAT. 2763A-525]]

    (b) Conforming Amendment.--Section 1861(t)(1) (42 U.S.C. 
1395x(t)(1)) is amended by inserting ``(including contrast agents)'' 
after ``only such drugs''.
    (c) Effective Date.--The amendments made by this section apply to 
items and services furnished on or after July 1, 2001.

SEC. 431. QUALIFICATIONS FOR COMMUNITY MENTAL HEALTH CENTERS.

    (a) Medicare Program.--Section 1861(ff )(3)(B) (42 U.S.C. 1395x(ff 
)(3)(B)) is amended by striking ``entity'' and all that follows and 
inserting the following: ``entity that--
            ``(i)(I) provides the mental health services described in 
        section 1913(c)(1) of the Public Health Service Act; or
            ``(II) in the case of an entity operating in a State that by 
        law precludes the entity from providing itself the service 
        described in subparagraph (E) of such section, provides for such 
        service by contract with an approved organization or entity (as 
        determined by the Secretary);
            ``(ii) meets applicable licensing or certification 
        requirements for community mental health centers in the State in 
        which it is located; and
            ``(iii) meets such additional conditions as the Secretary 
        shall specify to ensure (I) the health and safety of individuals 
        being furnished such services, (II) the effective and efficient 
        furnishing of such services, and (III) the compliance of such 
        entity with the criteria described in section 1931(c)(1) of the 
        Public Health Service Act.''.

    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to community mental health centers with respect to 
services furnished on or after the first day of the third month 
beginning after the date of the enactment of this Act.

SEC. 432. PAYMENT OF PHYSICIAN AND NONPHYSICIAN SERVICES IN CERTAIN 
            INDIAN PROVIDERS.

    (a) In General.--Section 1880 (42 U.S.C. 1395qq) is amended--
            (1) by redesignating subsection (e), as added by section 
        3(b)(1) of the Alaska Native and American Indian Direct 
        Reimbursement Act of 2000 (Public Law 106-417), as subsection (f 
        ); and
            (2) by inserting after subsection (d) the following new 
        subsection:

    ``(e)(1)(A) Notwithstanding section 1835(d), subject to subparagraph 
(B), the Secretary shall make payment under part B to a hospital or an 
ambulatory care clinic (whether provider-based or freestanding) that is 
operated by the Indian Health Service or by an Indian tribe or tribal 
organization (as defined for purposes of subsection (a)) for services 
described in paragraph (2) furnished in or at the direction of the 
hospital or clinic under the same situations, terms, and conditions as 
would apply if the services were furnished in or at the direction of 
such a hospital or clinic that was not operated by such Service, tribe, 
or organization.
    ``(B) Payment shall not be made for services under subparagraph (A) 
to the extent that payment is otherwise made for such services under 
this title.
    ``(2) The services described in this paragraph are the following:
            ``(A) Services for which payment is made under section 1848.

[[Page 114 STAT. 2763A-526]]

            ``(B) Services furnished by a practitioner described in 
        section 1842(b)(18)(C) for which payment under part B is made 
        under a fee schedule.
            ``(C) Services furnished by a physical therapist or 
        occupational therapist as described in section 1861(p) for which 
        payment under part B is made under a fee schedule.

    ``(3) Subsection (c) shall not apply to payments made under this 
subsection.''.
    (b) Conforming Amendments.--
            (1) Coverage amendment.--Section 1862(a)(3) (42 U.S.C. 
        1395y(a)(3)) is amended--
                    (A) by striking the second comma after 
                ``1861(aa)(1)''; and
                    (B) by inserting ``in the case of services for which 
                payment may be made under section 1880(e),'' after ``as 
                defined in section 1861(aa)(3),''.
            (2) Direct payment amendment.--The first sentence of section 
        1842(b)(6) (42 U.S.C. 1395u(b)(6)) is amended--
                    (A) by striking ``and (F)'' and inserting ``(F)''; 
                and
                    (B) by inserting before the period the following: 
                ``, and (G) in the case of services in a hospital or 
                clinic to which section 1880(e) applies, payment shall 
                be made to such hospital or clinic''.

    (c) Effective Date.--The amendments made by this section shall apply 
to services furnished on or after July 1, 2001.

SEC. 433. GAO STUDY ON COVERAGE OF SURGICAL FIRST ASSISTING SERVICES OF 
            CERTIFIED REGISTERED NURSE FIRST ASSISTANTS.

    (a) Study.--The Comptroller General of the United States shall 
conduct a study on the effect on the medicare program under title XVIII 
of the Social Security Act and on medicare beneficiaries of coverage 
under the program of surgical first assisting services of certified 
registered nurse first assistants. The Comptroller General shall 
consider the following when conducting the study:
            (1) Any impact on the quality of care furnished to medicare 
        beneficiaries by reason of such coverage.
            (2) Appropriate education and training requirements for 
        certified registered nurse first assistants who furnish such 
        first assisting services.
            (3) Appropriate rates of payment under the program to such 
        certified registered nurse first assistants for furnishing such 
        services, taking into account the costs of compensation, 
        overhead, and supervision attributable to certified registered 
        nurse first assistants.

    (b) Report.--Not later than 1 year after the date of the enactment 
of this Act, the Comptroller General shall submit to Congress a report 
on the study conducted under subsection (a).

SEC. 434. MEDPAC STUDY AND REPORT ON MEDICARE REIMBURSEMENT FOR SERVICES 
            PROVIDED BY CERTAIN PROVIDERS.

    (a) Study.--The Medicare Payment Advisory Commission shall conduct a 
study on the appropriateness of the current payment rates under the 
medicare program under title XVIII of the Social Security Act for 
services provided by a--
            (1) certified nurse-midwife (as defined in subsection 
        (gg)(2) of section 1861 of such Act (42 U.S.C. 1395x));

[[Page 114 STAT. 2763A-527]]

            (2) physician assistant (as defined in subsection (aa)(5)(A) 
        of such section);
            (3) nurse practitioner (as defined in such subsection); and
            (4) clinical nurse specialist (as defined in subsection 
        (aa)(5)(B) of such section).

The study shall separately examine the appropriateness of such payment 
rates for orthopedic physician assistants, taking into consideration the 
requirements for accreditation, training, and education.
    (b) Report.--Not later than 18 months after the date of the 
enactment of this Act, the Commission shall submit to Congress a report 
on the study conducted under subsection (a), together with any 
recommendations for legislation that the Commission determines to be 
appropriate as a result of such study.

SEC. 435. MEDPAC STUDY AND REPORT ON MEDICARE COVERAGE OF SERVICES 
            PROVIDED BY CERTAIN NONPHYSICIAN PROVIDERS.

    (a) Study.--
            (1) In general.--The Medicare Payment Advisory Commission 
        shall conduct a study to determine the appropriateness of 
        providing coverage under the medicare program under title XVIII 
        of the Social Security Act for services provided by a--
                    (A) surgical technologist;
                    (B) marriage counselor;
                    (C) marriage and family therapist;
                    (D) pastoral care counselor; and
                    (E) licensed professional counselor of mental 
                health.
            (2) Costs to program.--The study shall consider the short-
        term and long-term benefits, and costs to the medicare program, 
        of providing the coverage described in paragraph (1).

    (b) Report.--Not later than 18 months after the date of the 
enactment of this Act, the Commission shall submit to Congress a report 
on the study conducted under subsection (a), together with any 
recommendations for legislation that the Commission determines to be 
appropriate as a result of such study.

SEC. 436. GAO STUDY AND REPORT ON THE COSTS OF EMERGENCY AND MEDICAL 
            TRANSPORTATION SERVICES.

    (a) Study.--The Comptroller General of the United States shall 
conduct a study on the costs of providing emergency and medical 
transportation services across the range of acuity levels of conditions 
for which such transportation services are provided.
    (b) Report.--Not later than 18 months after the date of the 
enactment of this Act, the Comptroller General shall submit to Congress 
a report on the study conducted under subsection (a), together with 
recommendations for any changes in methodology or payment level 
necessary to fairly compensate suppliers of emergency and medical 
transportation services and to ensure the access of beneficiaries under 
the medicare program under title XVIII of the Social Security Act.

SEC. 437. GAO STUDIES AND REPORTS ON MEDICARE PAYMENTS.

    (a) GAO Study on HCFA Post-Payment Audit Process.--
            (1) Study.--The Comptroller General of the United States 
        shall conduct a study on the post-payment audit process under 
        the medicare program under title XVIII of the Social Security 
        Act as such process applies to physicians, including the proper

[[Page 114 STAT. 2763A-528]]

        level of resources that the Health Care Financing Administration 
        should devote to educating physicians regarding--
                    (A) coding and billing;
                    (B) documentation requirements; and
                    (C) the calculation of overpayments.
            (2) Report.--Not later than 18 months after the date of the 
        enactment of this Act, the Comptroller General shall submit to 
        Congress a report on the study conducted under paragraph (1) 
        together with specific recommendations for changes or 
        improvements in the post-payment audit process described in such 
        paragraph.

    (b) GAO Study on Administration and Oversight.--
            (1) Study.--The Comptroller General of the United States 
        shall conduct a study on the aggregate effects of regulatory, 
        audit, oversight, and paperwork burdens on physicians and other 
        health care providers participating in the medicare program 
        under title XVIII of the Social Security Act.
            (2) Report.--Not later than 18 months after the date of the 
        enactment of this Act, the Comptroller General shall submit to 
        Congress a report on the study conducted under paragraph (1) 
        together with recommendations regarding any area in which--
                    (A) a reduction in paperwork, an ease of 
                administration, or an appropriate change in oversight 
                and review may be accomplished; or
                    (B) additional payments or education are needed to 
                assist physicians and other health care providers in 
                understanding and complying with any legal or regulatory 
                requirements.

SEC. 438. MEDPAC STUDY ON ACCESS TO OUTPATIENT PAIN MANAGEMENT SERVICES.

    (a) Study.--The Medicare Payment Advisory Commission shall conduct a 
study on the barriers to coverage and payment for outpatient 
interventional pain medicine procedures under the medicare program under 
title XVIII of the Social Security Act. Such study shall examine--
            (1) the specific barriers imposed under the medicare program 
        on the provision of pain management procedures in hospital 
        outpatient departments, ambulatory surgery centers, and 
        physicians' offices; and
            (2) the consistency of medicare payment policies for pain 
        management procedures in those different settings.

    (b) Report.--Not later than 1 year after the date of the enactment 
of this Act, the Commission shall submit to Congress a report on the 
study.

[[Page 114 STAT. 2763A-529]]

              TITLE V--PROVISIONS RELATING TO PARTS A AND B

                    Subtitle A--Home Health Services

SEC. 501. ONE-YEAR ADDITIONAL DELAY IN APPLICATION OF 15 PERCENT 
            REDUCTION ON PAYMENT LIMITS FOR HOME HEALTH SERVICES.

    (a) In General.--Section 1895(b)(3)(A)(i) (42 U.S.C. 
1395fff(b)(3)(A)(i)) is amended--
            (1) by redesignating subclause (II) as subclause (III);
            (2) in subclause (III), as redesignated, by striking 
        ``described in subclause (I)'' and inserting ``described in 
        subclause (II)''; and
            (3) by inserting after subclause (I) the following new 
        subclause:
                                    ``(II) For the 12-month period 
                                beginning after the period described in 
                                subclause (I), such amount (or amounts) 
                                shall be equal to the amount (or 
                                amounts) determined under subclause (I), 
                                updated under subparagraph (B).''.

    (b) Change in Report.--Section 302(c) of BBRA (113 Stat. 1501A-360) 
is amended--
            (1) by striking ``Not later than'' and all that follows 
        through ``(42 U.S.C. 1395fff )'' and inserting ``Not later than 
        April 1, 2002''; and
            (2) by striking ``Secretary'' and inserting ``Comptroller 
        General of the United States''.

    (c) Case Mix Adjustment Corrections.--
            (1) In general.--Section 1895(b)(3)(B) (42 U.S.C. 
        1395fff(b)(3)(B)) is amended by adding at the end the following 
        new clause:
                          ``(iv) Adjustment for case mix changes.--
                      Insofar as the Secretary determines that the 
                      adjustments under paragraph (4)(A)(i) for a 
                      previous fiscal year (or estimates that such 
                      adjustments for a future fiscal year) did (or are 
                      likely to) result in a change in aggregate 
                      payments under this subsection during the fiscal 
                      year that are a result of changes in the coding or 
                      classification of different units of services that 
                      do not reflect real changes in case mix, the 
                      Secretary may adjust the standard prospective 
                      payment amount (or amounts) under paragraph (3) 
                      for subsequent fiscal years so as to eliminate the 
                      effect of such coding or classification 
                      changes.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply to episodes concluding on or after October 1, 2001.

SEC. 502. RESTORATION OF FULL HOME HEALTH MARKET BASKET UPDATE FOR HOME 
            HEALTH SERVICES FOR FISCAL YEAR 2001.

    (a) In General.--Section 1861(v)(1)(L)(x) (42 U.S.C. 
1395x(v)(1)(L)(x)) is amended--
            (1) by striking ``2001,''; and

[[Page 114 STAT. 2763A-530]]

            (2) by adding at the end the following: ``With respect to 
        cost reporting periods beginning during fiscal year 2001, the 
        update to any limit under this subparagraph shall be the home 
        health market basket index.''.

    (b) Special Rule for Payment for Fiscal Year 2001 Based on Adjusted 
Prospective Payment Amounts.--
            (1) In general.--Notwithstanding the amendments made by 
        subsection (a), for purposes of making payments under section 
        1895(b) of the Social Security Act (42 U.S.C. 1395fff(b)) for 
        home health services furnished during fiscal year 2001, the 
        Secretary of Health and Human Services shall--
                    (A) with respect to episodes and visits ending on or 
                after October 1, 2000, and before April 1, 2001, use the 
                final standardized and budget neutral prospective 
                payment amounts for 60-day episodes and standardized 
                average per visit amounts for fiscal year 2001 as 
                published by the Secretary in the Federal Register on 
                July 3, 2000 (65 Fed. Reg. 41128-41214); and
                    (B) with respect to episodes and visits ending on or 
                after April 1, 2001, and before October 1, 2001, use 
                such amounts increased by 2.2 percent.
            (2) No effect on other payments or determinations.--The 
        Secretary shall not take the provisions of paragraph (1) into 
        account for purposes of payments, determinations, or budget 
        neutrality adjustments under section 1895 of the Social Security 
        Act.

SEC. 503. TEMPORARY TWO-MONTH PERIODIC INTERIM PAYMENT.

    (a) In General.--Notwithstanding the amendments made by section 
4603(b) of BBA (42 U.S.C. 1395fff note), in the case of a home health 
agency that was receiving periodic interim payments under section 
1815(e)(2) of the Social Security Act (42 U.S.C. 1395g(e)(2)) as of 
September 30, 2000, and that is not described in subsection (b), the 
Secretary of Health and Human Services shall, as soon as practicable, 
make a single periodic interim payment to such agency in an amount equal 
to four times the last full fortnightly periodic interim payment made to 
such agency under the payment system in effect prior to the 
implementation of the prospective payment system under section 1895(b) 
of such Act (42 U.S.C. 1395fff(b)). Such amount of such periodic interim 
payment shall be included in the tentative settlement of the last cost 
report for the home health agency under the payment system in effect 
prior to the implementation of such prospective payment system, 
regardless of the ending date of such cost report.
    (b) Exceptions.--The Secretary shall not make an additional periodic 
interim payment under subsection (a) in the case of a home health agency 
(determined as of the day that such payment would otherwise be made) 
that--
            (1) notifies the Secretary that such agency does not want to 
        receive such payment;
            (2) is not receiving payments pursuant to section 405.371 of 
        title 42, Code of Federal Regulations;
            (3) is excluded from the medicare program under title XI of 
        the Social Security Act;
            (4) no longer has a provider agreement under section 1866 of 
        such Act (42 U.S.C. 1395cc);
            (5) is no longer in business; or

[[Page 114 STAT. 2763A-531]]

            (6) is subject to a court order providing for the 
        withholding of medicare payments under title XVIII of such Act.

SEC. 504. USE OF TELEHEALTH IN DELIVERY OF HOME HEALTH SERVICES.

    Section 1895 (42 U.S.C. 1395fff ) is amended by adding at the end 
the following new subsection:
    ``(e) Construction Related to Home Health Services.--
            ``(1) Telecommunications.--Nothing in this section shall be 
        construed as preventing a home health agency furnishing a home 
        health unit of service for which payment is made under the 
        prospective payment system established by this section for such 
        units of service from furnishing services via a 
        telecommunication system if such services--
                    ``(A) do not substitute for in-person home health 
                services ordered as part of a plan of care certified by 
                a physician pursuant to section 1814(a)(2)(C) or 
                1835(a)(2)(A); and
                    ``(B) are not considered a home health visit for 
                purposes of eligibility or payment under this title.
            ``(2) Physician certification.--Nothing in this section 
        shall be construed as waiving the requirement for a physician 
        certification under section 1814(a)(2)(C) or 1835(a)(2)(A) of 
        such Act (42 U.S.C. 1395f(a)(2)(C), 1395n(a)(2)(A)) for the 
        payment for home health services, whether or not furnished via a 
        telecommunications system.''.

SEC. 505. STUDY ON COSTS TO HOME HEALTH AGENCIES OF PURCHASING 
            NONROUTINE MEDICAL SUPPLIES.

    (a) Study.--The Comptroller General of the United States shall 
conduct a study on variations in prices paid by home health agencies 
furnishing home health services under the medicare program under title 
XVIII of the Social Security Act in purchasing nonroutine medical 
supplies, including ostomy supplies, and volumes of such supplies used, 
shall determine the effect (if any) of variations on prices and volumes 
in the provision of such services.
    (b) Report.--Not later than August 15, 2001, the Comptroller General 
shall submit to Congress a report on the study conducted under 
subsection (a), and shall include in the report recommendations 
respecting whether payment for nonroutine medical supplies furnished in 
connection with home health services should be made separately from the 
prospective payment system for such services.

SEC. 506. TREATMENT OF BRANCH OFFICES; GAO STUDY ON SUPERVISION OF HOME 
            HEALTH CARE PROVIDED IN ISOLATED RURAL AREAS.

    (a) Treatment of Branch Offices.--
            (1) In general.--Notwithstanding any other provision of law, 
        in determining for purposes of title XVIII of the Social 
        Security Act whether an office of a home health agency 
        constitutes a branch office or a separate home health agency, 
        neither the time nor distance between a parent office of the 
        home health agency and a branch office shall be the sole 
        determinant of a home health agency's branch office status.
            (2) Consideration of forms of technology in definition of 
        supervision.--The Secretary of Health and Human Services may 
        include forms of technology in determining what constitutes 
        ``supervision'' for purposes of determining a home heath 
        agency's branch office status under paragraph (1).

[[Page 114 STAT. 2763A-532]]

    (b) GAO Study.--
            (1) Study.--The Comptroller General of the United States 
        shall conduct a study of the provision of adequate supervision 
        to maintain quality of home health services delivered under the 
        medicare program under title XVIII of the Social Security Act in 
        isolated rural areas. The study shall evaluate the methods that 
        home health agency branches and subunits use to maintain 
        adequate supervision in the delivery of services to clients 
        residing in those areas, how these methods of supervision 
        compare to requirements that subunits independently meet 
        medicare conditions of participation, and the resources utilized 
        by subunits to meet such conditions.
            (2) Report.--Not later than January 1, 2002, the Comptroller 
        General shall submit to Congress a report on the study conducted 
        under paragraph (1). The report shall include recommendations on 
        whether exceptions are needed for subunits and branches of home 
        health agencies under the medicare program to maintain access to 
        the home health benefit or whether alternative policies should 
        be developed to assure adequate supervision and access and 
        recommendations on whether a national standard for supervision 
        is appropriate.

SEC. 507. CLARIFICATION OF THE HOMEBOUND DEFINITION UNDER THE MEDICARE 
            HOME HEALTH BENEFIT.

    (a) Clarification.--
            (1) In general.--Sections 1814(a) and 1835(a) (42 U.S.C. 
        1395f(a) and 1395n(a)) are each amended--
                    (A) in the last sentence, by striking ``, and that 
                absences of the individual from home are infrequent or 
                of relatively short duration, or are attributable to the 
                need to receive medical treatment''; and
                    (B) by adding at the end the following new 
                sentences: ``Any absence of an individual from the home 
                attributable to the need to receive health care 
                treatment, including regular absences for the purpose of 
                participating in therapeutic, psychosocial, or medical 
                treatment in an adult day-care program that is licensed 
                or certified by a State, or accredited, to furnish adult 
                day-care services in the State shall not disqualify an 
                individual from being considered to be `confined to his 
                home'. Any other absence of an individual from the home 
                shall not so disqualify an individual if the absence is 
                of infrequent or of relatively short duration. For 
                purposes of the preceding sentence, any absence for the 
                purpose of attending a religious service shall be deemed 
                to be an absence of infrequent or short duration.''.
            (2) Effective date.--The amendments made by paragraph (1) 
        shall apply to home health services furnished on or after the 
        date of the enactment of this Act.

    (b) Study.--
            (1) In general.--The Comptroller General of the United 
        States shall conduct an evaluation of the effect of the 
        amendment on the cost of and access to home health services 
        under the medicare program under title XVIII of the Social 
        Security Act.
            (2) Report.--Not later than 1 year after the date of the 
        enactment of this Act, the Comptroller General shall submit

[[Page 114 STAT. 2763A-533]]

        to Congress a report on the study conducted under paragraph (1).

SEC. 508. TEMPORARY INCREASE FOR HOME HEALTH SERVICES FURNISHED IN A 
            RURAL AREA.

    (a) 24-Month Increase Beginning April 1, 2001.--In the case of home 
health services furnished in a rural area (as defined in section 
1886(d)(2)(D) of the Social Security Act (42 U.S.C. 1395ww(d)(2)(D))) on 
or after April 1, 2001, and before April 1, 2003, the Secretary of 
Health and Human Services shall increase the payment amount otherwise 
made under section 1895 of such Act (42 U.S.C. 1395fff ) for such 
services by 10 percent.
    (b) Waiving Budget Neutrality.--The Secretary shall not reduce the 
standard prospective payment amount (or amounts) under section 1895 of 
the Social Security Act (42 U.S.C. 1395fff ) applicable to home health 
services furnished during a period to offset the increase in payments 
resulting from the application of subsection (a).

              Subtitle B--Direct Graduate Medical Education

SEC. 511. INCREASE IN FLOOR FOR DIRECT GRADUATE MEDICAL EDUCATION 
            PAYMENTS.

    Section 1886(h)(2)(D)(iii) (42 U.S.C. 1395ww(h)(2)(D)(iii)) is 
amended--
            (1) in the heading, by striking ``in fiscal year 2001 at 70 
        percent of'' and inserting ``for''; and
            (2) by inserting after ``70 percent'' the following: ``, and 
        for the cost reporting period beginning during fiscal year 2002 
        shall not be less than 85 percent,''.

SEC. 512. CHANGE IN DISTRIBUTION FORMULA FOR MEDICARE+CHOICE-RELATED 
            NURSING AND ALLIED HEALTH EDUCATION COSTS.

    (a) In General.--Section 1886(l)(2)(C) (42 U.S.C. 1395ww(l)(2)(C)) 
is amended by striking all that follows ``multiplied by'' and inserting 
the following: ``the ratio of--
                          ``(i) the product of (I) the Secretary's 
                      estimate of the ratio of the amount of payments 
                      made under section 1861(v) to the hospital for 
                      nursing and allied health education activities for 
                      the hospital's cost reporting period ending in the 
                      second preceding fiscal year, to the hospital's 
                      total inpatient days for such period, and (II) the 
                      total number of inpatient days (as established by 
                      the Secretary) for such period which are 
                      attributable to services furnished to individuals 
                      who are enrolled under a risk sharing contract 
                      with an eligible organization under section 1876 
                      and who are entitled to benefits under part A or 
                      who are enrolled with a Medicare+Choice 
                      organization under part C; to
                          ``(ii) the sum of the products determined 
                      under clause (i) for such cost reporting 
                      periods.''.

[[Page 114 STAT. 2763A-534]]

    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to portions of cost reporting periods occurring on or after 
January 1, 2001.

      Subtitle C--Changes in Medicare Coverage and Appeals Process

SEC. 521. REVISIONS TO MEDICARE APPEALS PROCESS.

    (a) Conduct of Reconsiderations of Determinations by Independent 
Contractors.--Section 1869 (42 U.S.C. 1395ff ) is amended to read as 
follows:

                        ``determinations; appeals

    ``Sec. 1869. (a) Initial Determinations.--
            ``(1) Promulgations of regulations.--The Secretary shall 
        promulgate regulations and make initial determinations with 
        respect to benefits under part A or part B in accordance with 
        those regulations for the following:
                    ``(A) The initial determination of whether an 
                individual is entitled to benefits under such parts.
                    ``(B) The initial determination of the amount of 
                benefits available to the individual under such parts.
                    ``(C) Any other initial determination with respect 
                to a claim for benefits under such parts, including an 
                initial determination by the Secretary that payment may 
                not be made, or may no longer be made, for an item or 
                service under such parts, an initial determination made 
                by a utilization and quality control peer review 
                organization under section 1154(a)(2), and an initial 
                determination made by an entity pursuant to a contract 
                (other than a contract under section 1852) with the 
                Secretary to administer provisions of this title or 
                title XI.
            ``(2) Deadlines for making initial determinations.--
                    ``(A) In general.--Subject to subparagraph (B), in 
                promulgating regulations under paragraph (1), initial 
                determinations shall be concluded by not later than the 
                45-day period beginning on the date the fiscal 
                intermediary or the carrier, as the case may be, 
                receives a claim for benefits from an individual as 
                described in paragraph (1). Notice of such determination 
                shall be mailed to the individual filing the claim 
                before the conclusion of such 45-day period.
                    ``(B) Clean claims.--Subparagraph (A) shall not 
                apply with respect to any claim that is subject to the 
                requirements of section 1816(c)(2) or 1842(c)(2).
            ``(3) Redeterminations.--
                    ``(A) In general.--In promulgating regulations under 
                paragraph (1) with respect to initial determinations, 
                such regulations shall provide for a fiscal intermediary 
                or a carrier to make a redetermination with respect to a 
                claim for benefits that is denied in whole or in part.
                    ``(B) Limitations.--
                          ``(i) Appeal rights.--No initial determination 
                      may be reconsidered or appealed under subsection 
                      (b) unless

[[Page 114 STAT. 2763A-535]]

                      the fiscal intermediary or carrier has made a 
                      redetermination of that initial determination 
                      under this paragraph.
                          ``(ii) Decisionmaker.--No redetermination may 
                      be made by any individual involved in the initial 
                      determination.
                    ``(C) Deadlines.--
                          ``(i) Filing for redetermination.--A 
                      redetermination under subparagraph (A) shall be 
                      available only if notice is filed with the 
                      Secretary to request the redetermination by not 
                      later than the end of the 120-day period beginning 
                      on the date the individual receives notice of the 
                      initial determination under paragraph (2).
                          ``(ii) Concluding redeterminations.--
                      Redeterminations shall be concluded by not later 
                      than the 30-day period beginning on the date the 
                      fiscal intermediary or the carrier, as the case 
                      may be, receives a request for a redetermination. 
                      Notice of such determination shall be mailed to 
                      the individual filing the claim before the 
                      conclusion of such 30-day period.
                    ``(D) Construction.--For purposes of the succeeding 
                provisions of this section a redetermination under this 
                paragraph shall be considered to be part of the initial 
                determination.

    ``(b) Appeal Rights.--
            ``(1) In general.--
                    ``(A) Reconsideration of initial determination.--
                Subject to subparagraph (D), any individual dissatisfied 
                with any initial determination under subsection (a)(1) 
                shall be entitled to reconsideration of the 
                determination, and, subject to subparagraphs (D) and 
                (E), a hearing thereon by the Secretary to the same 
                extent as is provided in section 205(b) and to judicial 
                review of the Secretary's final decision after such 
                hearing as is provided in section 205(g). For purposes 
                of the preceding sentence, any reference to the 
                `Commissioner of Social Security' or the `Social 
                Security Administration' in subsection (g) or (l) of 
                section 205 shall be considered a reference to the 
                `Secretary' or the `Department of Health and Human 
                Services', respectively.
                    ``(B) Representation by provider or supplier.--
                          ``(i) In general.--Sections 206(a), 1102, and 
                      1871 shall not be construed as authorizing the 
                      Secretary to prohibit an individual from being 
                      represented under this section by a person that 
                      furnishes or supplies the individual, directly or 
                      indirectly, with services or items, solely on the 
                      basis that the person furnishes or supplies the 
                      individual with such a service or item.
                          ``(ii) Mandatory waiver of right to payment 
                      from beneficiary.--Any person that furnishes 
                      services or items to an individual may not 
                      represent an individual under this section with 
                      respect to the issue described in section 
                      1879(a)(2) unless the person has waived any rights 
                      for payment from the beneficiary with respect to 
                      the services or items involved in the appeal.

[[Page 114 STAT. 2763A-536]]

                          ``(iii) Prohibition on payment for 
                      representation.--If a person furnishes services or 
                      items to an individual and represents the 
                      individual under this section, the person may not 
                      impose any financial liability on such individual 
                      in connection with such representation.
                          ``(iv) Requirements for representatives of a 
                      beneficiary.--The provisions of section 205( j) 
                      and of section 206 (other than subsection (a)(4) 
                      of such section) regarding representation of 
                      claimants shall apply to representation of an 
                      individual with respect to appeals under this 
                      section in the same manner as they apply to 
                      representation of an individual under those 
                      sections.
                    ``(C) Succession of rights in cases of assignment.--
                The right of an individual to an appeal under this 
                section with respect to an item or service may be 
                assigned to the provider of services or supplier of the 
                item or service upon the written consent of such 
                individual using a standard form established by the 
                Secretary for such an assignment.
                    ``(D) Time limits for filing appeals.--
                          ``(i) Reconsiderations.--Reconsideration under 
                      subparagraph (A) shall be available only if the 
                      individual described in subparagraph (A) files 
                      notice with the Secretary to request 
                      reconsideration by not later than the end of the 
                      180-day period beginning on the date the 
                      individual receives notice of the redetermination 
                      under subsection (a)(3), or within such additional 
                      time as the Secretary may allow.
                          ``(ii) Hearings conducted by the secretary.--
                      The Secretary shall establish in regulations time 
                      limits for the filing of a request for a hearing 
                      by the Secretary in accordance with provisions in 
                      sections 205 and 206.
                    ``(E) Amounts in controversy.--
                          ``(i) In general.--A hearing (by the 
                      Secretary) shall not be available to an individual 
                      under this section if the amount in controversy is 
                      less than $100, and judicial review shall not be 
                      available to the individual if the amount in 
                      controversy is less than $1,000.
                          ``(ii) Aggregation of claims.--In determining 
                      the amount in controversy, the Secretary, under 
                      regulations, shall allow two or more appeals to be 
                      aggregated if the appeals involve--
                                    ``(I) the delivery of similar or 
                                related services to the same individual 
                                by one or more providers of services or 
                                suppliers, or
                                    ``(II) common issues of law and fact 
                                arising from services furnished to two 
                                or more individuals by one or more 
                                providers of services or suppliers.
                    ``(F) Expedited proceedings.--
                          ``(i) Expedited determination.--In the case of 
                      an individual who has received notice from a 
                      provider of services that such provider plans--
                                    ``(I) to terminate services provided 
                                to an individual and a physician 
                                certifies that failure to continue the 
                                provision of such services is likely

[[Page 114 STAT. 2763A-537]]

                                to place the individual's health at 
                                significant risk, or
                                    ``(II) to discharge the individual 
                                from the provider of services,
                      the individual may request, in writing or orally, 
                      an expedited determination or an expedited 
                      reconsideration of an initial determination made 
                      under subsection (a)(1), as the case may be, and 
                      the Secretary shall provide such expedited 
                      determination or expedited reconsideration.
                          ``(ii) Expedited hearing.--In a hearing by the 
                      Secretary under this section, in which the moving 
                      party alleges that no material issues of fact are 
                      in dispute, the Secretary shall make an expedited 
                      determination as to whether any such facts are in 
                      dispute and, if not, shall render a decision 
                      expeditiously.
                    ``(G) Reopening and revision of determinations.--The 
                Secretary may reopen or revise any initial determination 
                or reconsidered determination described in this 
                subsection under guidelines established by the Secretary 
                in regulations.

    ``(c) Conduct of Reconsiderations by Independent Contractors.--
            ``(1) In general.--The Secretary shall enter into contracts 
        with qualified independent contractors to conduct 
        reconsiderations of initial determinations made under 
        subparagraphs (B) and (C) of subsection (a)(1). Contracts shall 
        be for an initial term of three years and shall be renewable on 
        a triennial basis thereafter.
            ``(2) Qualified independent contractor.--For purposes of 
        this subsection, the term `qualified independent contractor' 
        means an entity or organization that is independent of any 
        organization under contract with the Secretary that makes 
        initial determinations under subsection (a)(1), and that meets 
        the requirements established by the Secretary consistent with 
        paragraph (3).
            ``(3) Requirements.--Any qualified independent contractor 
        entering into a contract with the Secretary under this 
        subsection shall meet all of the following requirements:
                    ``(A) In general.--The qualified independent 
                contractor shall perform such duties and functions and 
                assume such responsibilities as may be required by the 
                Secretary to carry out the provisions of this 
                subsection, and shall have sufficient training and 
                expertise in medical science and legal matters to make 
                reconsiderations under this subsection.
                    ``(B) Reconsiderations.--
                          ``(i) In general.--The qualified independent 
                      contractor shall review initial determinations. 
                      Where an initial determination is made with 
                      respect to whether an item or service is 
                      reasonable and necessary for the diagnosis or 
                      treatment of illness or injury (under section 
                      1862(a)(1)(A)), such review shall include 
                      consideration of the facts and circumstances of 
                      the initial determination by a panel of physicians 
                      or other appropriate health care professionals and 
                      any decisions with respect to the reconsideration 
                      shall be based on

[[Page 114 STAT. 2763A-538]]

                      applicable information, including clinical 
                      experience and medical, technical, and scientific 
                      evidence.
                          ``(ii) Effect of national and local coverage 
                      determinations.--
                                    ``(I) National coverage 
                                determinations.--If the Secretary has 
                                made a national coverage determination 
                                pursuant to the requirements established 
                                under the third sentence of section 
                                1862(a), such determination shall be 
                                binding on the qualified independent 
                                contractor in making a decision with 
                                respect to a reconsideration under this 
                                section.
                                    ``(II) Local coverage 
                                determinations.--If the Secretary has 
                                made a local coverage determination, 
                                such determination shall not be binding 
                                on the qualified independent contractor 
                                in making a decision with respect to a 
                                reconsideration under this section. 
                                Notwithstanding the previous sentence, 
                                the qualified independent contractor 
                                shall consider the local coverage 
                                determination in making such decision.
                                    ``(III) Absence of national or local 
                                coverage determination.--In the absence 
                                of such a national coverage 
                                determination or local coverage 
                                determination, the qualified independent 
                                contractor shall make a decision with 
                                respect to the reconsideration based on 
                                applicable information, including 
                                clinical experience and medical, 
                                technical, and scientific evidence.
                    ``(C) Deadlines for decisions.--
                          ``(i) Reconsiderations.--Except as provided in 
                      clauses (iii) and (iv), the qualified independent 
                      contractor shall conduct and conclude a 
                      reconsideration under subparagraph (B), and mail 
                      the notice of the decision with respect to the 
                      reconsideration by not later than the end of the 
                      30-day period beginning on the date a request for 
                      reconsideration has been timely filed.
                          ``(ii) Consequences of failure to meet 
                      deadline.--In the case of a failure by the 
                      qualified independent contractor to mail the 
                      notice of the decision by the end of the period 
                      described in clause (i) or to provide notice by 
                      the end of the period described in clause (iii), 
                      as the case may be, the party requesting the 
                      reconsideration or appeal may request a hearing 
                      before the Secretary, notwithstanding any 
                      requirements for a reconsidered determination for 
                      purposes of the party's right to such hearing.
                          ``(iii) Expedited reconsiderations.--The 
                      qualified independent contractor shall perform an 
                      expedited reconsideration under subsection 
                      (b)(1)(F) as follows:
                                    ``(I) Deadline for decision.--
                                Notwithstanding section 216( j) and 
                                subject to clause (iv), not later than 
                                the end of the 72-hour period beginning 
                                on the date the qualified independent 
                                contractor has received a request for 
                                such reconsideration and has received 
                                such medical or other records needed for 
                                such reconsideration, the qualified

[[Page 114 STAT. 2763A-539]]

                                independent contractor shall provide 
                                notice (by telephone and in writing) to 
                                the individual and the provider of 
                                services and attending physician of the 
                                individual of the results of the 
                                reconsideration. Such reconsideration 
                                shall be conducted regardless of whether 
                                the provider of services or supplier 
                                will charge the individual for continued 
                                services or whether the individual will 
                                be liable for payment for such continued 
                                services.
                                    ``(II) Consultation with 
                                beneficiary.--In such reconsideration, 
                                the qualified independent contractor 
                                shall solicit the views of the 
                                individual involved.
                                    ``(III) Special rule for hospital 
                                discharges.--A reconsideration of a 
                                discharge from a hospital shall be 
                                conducted under this clause in 
                                accordance with the provisions of 
                                paragraphs (2), (3), and (4) of section 
                                1154(e) as in effect on the date that 
                                precedes the date of the enactment of 
                                this subparagraph.
                          ``(iv) Extension.--An individual requesting a 
                      reconsideration under this subparagraph may be 
                      granted such additional time as the individual 
                      specifies (not to exceed 14 days) for the 
                      qualified independent contractor to conclude the 
                      reconsideration. The individual may request such 
                      additional time orally or in writing.
                    ``(D) Limitation on individual reviewing 
                determinations.--
                          ``(i) Physicians and health care 
                      professional.--No physician or health care 
                      professional under the employ of a qualified 
                      independent contractor may review--
                                    ``(I) determinations regarding 
                                health care services furnished to a 
                                patient if the physician or health care 
                                professional was directly responsible 
                                for furnishing such services; or
                                    ``(II) determinations regarding 
                                health care services provided in or by 
                                an institution, organization, or agency, 
                                if the physician or any member of the 
                                family of the physician or health care 
                                professional has, directly or 
                                indirectly, a significant financial 
                                interest in such institution, 
                                organization, or agency.
                          ``(ii) Family described.--For purposes of this 
                      paragraph, the family of a physician or health 
                      care professional includes the spouse (other than 
                      a spouse who is legally separated from the 
                      physician or health care professional under a 
                      decree of divorce or separate maintenance), 
                      children (including stepchildren and legally 
                      adopted children), grandchildren, parents, and 
                      grandparents of the physician or health care 
                      professional.
                    ``(E) Explanation of decision.--Any decision with 
                respect to a reconsideration of a qualified independent 
                contractor shall be in writing, and shall include a 
                detailed explanation of the decision as well as a 
                discussion of the

[[Page 114 STAT. 2763A-540]]

                pertinent facts and applicable regulations applied in 
                making such decision, and in the case of a determination 
                of whether an item or service is reasonable and 
                necessary for the diagnosis or treatment of illness or 
                injury (under section 1862(a)(1)(A)) an explanation of 
                the medical and scientific rationale for the decision.
                    ``(F) Notice requirements.--Whenever a qualified 
                independent contractor makes a decision with respect to 
                a reconsideration under this subsection, the qualified 
                independent contractor shall promptly notify the entity 
                responsible for the payment of claims under part A or 
                part B of such decision.
                    ``(G) Dissemination of decisions on 
                reconsiderations.--Each qualified independent contractor 
                shall make available all decisions with respect to 
                reconsiderations of such qualified independent 
                contractors to fiscal intermediaries (under section 
                1816), carriers (under section 1842), peer review 
                organizations (under part B of title XI), 
                Medicare+Choice organizations offering Medicare+Choice 
                plans under part C, other entities under contract with 
                the Secretary to make initial determinations under part 
                A or part B or title XI, and to the public. The 
                Secretary shall establish a methodology under which 
                qualified independent contractors shall carry out this 
                subparagraph.
                    ``(H) Ensuring consistency in decisions.--Each 
                qualified independent contractor shall monitor its 
                decisions with respect to reconsiderations to ensure the 
                consistency of such decisions with respect to requests 
                for reconsideration of similar or related matters.
                    ``(I) Data collection.--
                          ``(i) In general.--Consistent with the 
                      requirements of clause (ii), a qualified 
                      independent contractor shall collect such 
                      information relevant to its functions, and keep 
                      and maintain such records in such form and manner 
                      as the Secretary may require to carry out the 
                      purposes of this section and shall permit access 
                      to and use of any such information and records as 
                      the Secretary may require for such purposes.
                          ``(ii) Type of data collected.--Each qualified 
                      independent contractor shall keep accurate records 
                      of each decision made, consistent with standards 
                      established by the Secretary for such purpose. 
                      Such records shall be maintained in an electronic 
                      database in a manner that provides for 
                      identification of the following:
                                    ``(I) Specific claims that give rise 
                                to appeals.
                                    ``(II) Situations suggesting the 
                                need for increased education for 
                                providers of services, physicians, or 
                                suppliers.
                                    ``(III) Situations suggesting the 
                                need for changes in national or local 
                                coverage policy.
                                    ``(IV) Situations suggesting the 
                                need for changes in local medical review 
                                policies.
                          ``(iii) Annual reporting.--Each qualified 
                      independent contractor shall submit annually to 
                      the Secretary (or otherwise as the Secretary may 
                      request)

[[Page 114 STAT. 2763A-541]]

                      records maintained under this paragraph for the 
                      previous year.
                    ``(J) Hearings by the secretary.--The qualified 
                independent contractor shall (i) prepare such 
                information as is required for an appeal of a decision 
                of the contractor with respect to a reconsideration to 
                the Secretary for a hearing, including as necessary, 
                explanations of issues involved in the decision and 
                relevant policies, and (ii) participate in such hearings 
                as required by the Secretary.
            ``(4) Number of qualified independent contractors.--The 
        Secretary shall enter into contracts with not fewer than 12 
        qualified independent contractors under this subsection.
            ``(5) Limitation on qualified independent contractor 
        liability.--No qualified independent contractor having a 
        contract with the Secretary under this subsection and no person 
        who is employed by, or who has a fiduciary relationship with, 
        any such qualified independent contractor or who furnishes 
        professional services to such qualified independent contractor, 
        shall be held by reason of the performance of any duty, 
        function, or activity required or authorized pursuant to this 
        subsection or to a valid contract entered into under this 
        subsection, to have violated any criminal law, or to be civilly 
        liable under any law of the United States or of any State (or 
        political subdivision thereof ) provided due care was exercised 
        in the performance of such duty, function, or activity.

    ``(d) Deadlines for Hearings by the Secretary.--
            ``(1) Hearing by administrative law judge.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), an administrative law judge shall 
                conduct and conclude a hearing on a decision of a 
                qualified independent contractor under subsection (c) 
                and render a decision on such hearing by not later than 
                the end of the 90-day period beginning on the date a 
                request for hearing has been timely filed.
                    ``(B) Waiver of deadline by party seeking hearing.--
                The 90-day period under subparagraph (A) shall not apply 
                in the case of a motion or stipulation by the party 
                requesting the hearing to waive such period.
            ``(2) Departmental appeals board review.--
                    ``(A) In general.--The Departmental Appeals Board of 
                the Department of Health and Human Services shall 
                conduct and conclude a review of the decision on a 
                hearing described in paragraph (1) and make a decision 
                or remand the case to the administrative law judge for 
                reconsideration by not later than the end of the 90-day 
                period beginning on the date a request for review has 
                been timely filed.
                    ``(B) DAB hearing procedure.--In reviewing a 
                decision on a hearing under this paragraph, the 
                Departmental Appeals Board shall review the case de 
                novo.
            ``(3) Consequences of failure to meet deadlines.--
                    ``(A) Hearing by administrative law judge.--In the 
                case of a failure by an administrative law judge to 
                render a decision by the end of the period described in 
                paragraph (1), the party requesting the hearing may 
                request a review by the Departmental Appeals Board of 
                the Department of Health and Human Services, 
                notwithstanding any

[[Page 114 STAT. 2763A-542]]

                requirements for a hearing for purposes of the party's 
                right to such a review.
                    ``(B) Departmental appeals board review.--In the 
                case of a failure by the Departmental Appeals Board to 
                render a decision by the end of the period described in 
                paragraph (2), the party requesting the hearing may seek 
                judicial review, notwithstanding any requirements for a 
                hearing for purposes of the party's right to such 
                judicial review.

    ``(e) Administrative Provisions.--
            ``(1) Limitation on review of certain regulations.--A 
        regulation or instruction that relates to a method for 
        determining the amount of payment under part B and that was 
        initially issued before January 1, 1981, shall not be subject to 
        judicial review.
            ``(2) Outreach.--The Secretary shall perform such outreach 
        activities as are necessary to inform individuals entitled to 
        benefits under this title and providers of services and 
        suppliers with respect to their rights of, and the process for, 
        appeals made under this section. The Secretary shall use the 
        toll-free telephone number maintained by the Secretary under 
        section 1804(b) to provide information regarding appeal rights 
        and respond to inquiries regarding the status of appeals.
            ``(3) Continuing education requirement for qualified 
        independent contractors and administrative law judges.--The 
        Secretary shall provide to each qualified independent 
        contractor, and, in consultation with the Commissioner of Social 
        Security, to administrative law judges that decide appeals of 
        reconsiderations of initial determinations or other decisions or 
        determinations under this section, such continuing education 
        with respect to coverage of items and services under this title 
        or policies of the Secretary with respect to part B of title XI 
        as is necessary for such qualified independent contractors and 
        administrative law judges to make informed decisions with 
        respect to appeals.
            ``(4) Reports.--
                    ``(A) Annual report to congress.--The Secretary 
                shall submit to Congress an annual report describing the 
                number of appeals for the previous year, identifying 
                issues that require administrative or legislative 
                actions, and including any recommendations of the 
                Secretary with respect to such actions. The Secretary 
                shall include in such report an analysis of 
                determinations by qualified independent contractors with 
                respect to inconsistent decisions and an analysis of the 
                causes of any such inconsistencies.
                    ``(B) Survey.--Not less frequently than every 5 
                years, the Secretary shall conduct a survey of a valid 
                sample of individuals entitled to benefits under this 
                title who have filed appeals of determinations under 
                this section, providers of services, and suppliers to 
                determine the satisfaction of such individuals or 
                entities with the process for appeals of determinations 
                provided for under this section and education and 
                training provided by the Secretary with respect to that 
                process. The Secretary shall submit to Congress a report 
                describing the results of the survey, and shall

[[Page 114 STAT. 2763A-543]]

                include any recommendations for administrative or 
                legislative actions that the Secretary determines 
                appropriate.''.

    (b) Applicability of Requirements and Limitations on Liability of 
Qualified Independent Contractors to Medicare+Choice Independent Appeals 
Contractors.--Section 1852(g)(4) (42 U.S.C. 1395w-22(g)(4)) is amended 
by adding at the end the following: ``The provisions of section 
1869(c)(5) shall apply to independent outside entities under contract 
with the Secretary under this paragraph.''.
    (c) Conforming Amendment.--Section 1154(e) (42 U.S.C. 1320c-3(e)) is 
amended by striking paragraphs (2), (3), and (4).
    (d) Effective Date.--The amendments made by this section shall apply 
with respect to initial determinations made on or after October 1, 2002.

SEC. 522. REVISIONS TO MEDICARE COVERAGE PROCESS.

    (a) Review of Determinations.--Section 1869 (42 U.S.C. 1395ff ), as 
amended by section 521, is further amended by adding at the end the 
following new subsection:
    ``(f ) Review of Coverage Determinations.--
            ``(1) National coverage determinations.--
                    ``(A) In general.--Review of any national coverage 
                determination shall be subject to the following 
                limitations:
                          ``(i) Such a determination shall not be 
                      reviewed by any administrative law judge.
                          ``(ii) Such a determination shall not be held 
                      unlawful or set aside on the ground that a 
                      requirement of section 553 of title 5, United 
                      States Code, or section 1871(b) of this title, 
                      relating to publication in the Federal Register or 
                      opportunity for public comment, was not satisfied.
                          ``(iii) Upon the filing of a complaint by an 
                      aggrieved party, such a determination shall be 
                      reviewed by the Departmental Appeals Board of the 
                      Department of Health and Human Services. In 
                      conducting such a review, the Departmental Appeals 
                      Board--
                                    ``(I) shall review the record and 
                                shall permit discovery and the taking of 
                                evidence to evaluate the reasonableness 
                                of the determination, if the Board 
                                determines that the record is incomplete 
                                or lacks adequate information to support 
                                the validity of the determination;
                                    ``(II) may, as appropriate, consult 
                                with appropriate scientific and clinical 
                                experts; and
                                    ``(III) shall defer only to the 
                                reasonable findings of fact, reasonable 
                                interpretations of law, and reasonable 
                                applications of fact to law by the 
                                Secretary.
                          ``(iv) The Secretary shall implement a 
                      decision of the Departmental Appeals Board within 
                      30 days of receipt of such decision.
                          ``(v) A decision of the Departmental Appeals 
                      Board constitutes a final agency action and is 
                      subject to judicial review.

[[Page 114 STAT. 2763A-544]]

                    ``(B) Definition of national coverage 
                determination.--For purposes of this section, the term 
                `national coverage determination' means a determination 
                by the Secretary with respect to whether or not a 
                particular item or service is covered nationally under 
                this title, but does not include a determination of what 
                code, if any, is assigned to a particular item or 
                service covered under this title or a determination with 
                respect to the amount of payment made for a particular 
                item or service so covered.
            ``(2) Local coverage determination.--
                    ``(A) In general.--Review of any local coverage 
                determination shall be subject to the following 
                limitations:
                          ``(i) Upon the filing of a complaint by an 
                      aggrieved party, such a determination shall be 
                      reviewed by an administrative law judge of the 
                      Social Security Administration. The administrative 
                      law judge--
                                    ``(I) shall review the record and 
                                shall permit discovery and the taking of 
                                evidence to evaluate the reasonableness 
                                of the determination, if the 
                                administrative law judge determines that 
                                the record is incomplete or lacks 
                                adequate information to support the 
                                validity of the determination;
                                    ``(II) may, as appropriate, consult 
                                with appropriate scientific and clinical 
                                experts; and
                                    ``(III) shall defer only to the 
                                reasonable findings of fact, reasonable 
                                interpretations of law, and reasonable 
                                applications of fact to law by the 
                                Secretary.
                          ``(ii) Upon the filing of a complaint by an 
                      aggrieved party, a decision of an administrative 
                      law judge under clause (i) shall be reviewed by 
                      the Departmental Appeals Board of the Department 
                      of Health and Human Services.
                          ``(iii) The Secretary shall implement a 
                      decision of the administrative law judge or the 
                      Departmental Appeals Board within 30 days of 
                      receipt of such decision.
                          ``(iv) A decision of the Departmental Appeals 
                      Board constitutes a final agency action and is 
                      subject to judicial review.
                    ``(B) Definition of local coverage determination.--
                For purposes of this section, the term `local coverage 
                determination' means a determination by a fiscal 
                intermediary or a carrier under part A or part B, as 
                applicable, respecting whether or not a particular item 
                or service is covered on an intermediary- or carrier-
                wide basis under such parts, in accordance with section 
                1862(a)(1)(A).
            ``(3) No material issues of fact in dispute.--In the case of 
        a determination that may otherwise be subject to review under 
        paragraph (1)(A)(iii) or paragraph (2)(A)(i), where the moving 
        party alleges that--
                    ``(A) there are no material issues of fact in 
                dispute, and
                    ``(B) the only issue of law is the constitutionality 
                of a provision of this title, or that a regulation, 
                determination, or ruling by the Secretary is invalid,

[[Page 114 STAT. 2763A-545]]

        the moving party may seek review by a court of competent 
        jurisdiction without filing a complaint under such paragraph and 
        without otherwise exhausting other administrative remedies.
            ``(4) Pending national coverage determinations.--
                    ``(A) In general.--In the event the Secretary has 
                not issued a national coverage or noncoverage 
                determination with respect to a particular type or class 
                of items or services, an aggrieved person (as described 
                in paragraph (5)) may submit to the Secretary a request 
                to make such a determination with respect to such items 
                or services. By not later than the end of the 90-day 
                period beginning on the date the Secretary receives such 
                a request (notwithstanding the receipt by the Secretary 
                of new evidence (if any) during such 90-day period), the 
                Secretary shall take one of the following actions:
                          ``(i) Issue a national coverage determination, 
                      with or without limitations.
                          ``(ii) Issue a national noncoverage 
                      determination.
                          ``(iii) Issue a determination that no national 
                      coverage or noncoverage determination is 
                      appropriate as of the end of such 90-day period 
                      with respect to national coverage of such items or 
                      services.
                          ``(iv) Issue a notice that states that the 
                      Secretary has not completed a review of the 
                      request for a national coverage determination and 
                      that includes an identification of the remaining 
                      steps in the Secretary's review process and a 
                      deadline by which the Secretary will complete the 
                      review and take an action described in subclause 
                      (I), (II), or (III).
                    ``(B) Deemed action by the secretary.--In the case 
                of an action described in clause (i)(IV), if the 
                Secretary fails to take an action referred to in such 
                clause by the deadline specified by the Secretary under 
                such clause, then the Secretary is deemed to have taken 
                an action described in clause (i)(III) as of the 
                deadline.
                    ``(C) Explanation of determination.--When issuing a 
                determination under clause (i), the Secretary shall 
                include an explanation of the basis for the 
                determination. An action taken under clause (i) (other 
                than subclause (IV)) is deemed to be a national coverage 
                determination for purposes of review under subparagraph 
                (A).
            ``(5) Standing.--An action under this subsection seeking 
        review of a national coverage determination or local coverage 
        determination may be initiated only by individuals entitled to 
        benefits under part A, or enrolled under part B, or both, who 
        are in need of the items or services that are the subject of the 
        coverage determination.
            ``(6) Publication on the internet of decisions of hearings 
        of the secretary.--Each decision of a hearing by the Secretary 
        with respect to a national coverage determination shall be made 
        public, and the Secretary shall publish each decision on the 
        Medicare Internet site of the Department of Health and Human 
        Services. The Secretary shall remove from such decision any 
        information that would identify any individual, provider of 
        services, or supplier.

[[Page 114 STAT. 2763A-546]]

            ``(7) Annual report on national coverage determinations.--
                    ``(A) In general.--Not later than December 1 of each 
                year, beginning in 2001, the Secretary shall submit to 
                Congress a report that sets forth a detailed compilation 
                of the actual time periods that were necessary to 
                complete and fully implement national coverage 
                determinations that were made in the previous fiscal 
                year for items, services, or medical devices not 
                previously covered as a benefit under this title, 
                including, with respect to each new item, service, or 
                medical device, a statement of the time taken by the 
                Secretary to make and implement the necessary coverage, 
                coding, and payment determinations, including the time 
                taken to complete each significant step in the process 
                of making and implementing such determinations.
                    ``(B) Publication of reports on the internet.--The 
                Secretary shall publish each report submitted under 
                clause (i) on the medicare Internet site of the 
                Department of Health and Human Services.
            ``(8) Construction.--Nothing in this subsection shall be 
        construed as permitting administrative or judicial review 
        pursuant to this section insofar as such review is explicitly 
        prohibited or restricted under another provision of law.''.

    (b) Establishment of a Process for Coverage Determinations.--Section 
1862(a) (42 U.S.C. 1395y(a)) is amended by adding at the end the 
following new sentence: ``In making a national coverage determination 
(as defined in paragraph (1)(B) of section 1869(f )) the Secretary shall 
ensure that the public is afforded notice and opportunity to comment 
prior to implementation by the Secretary of the determination; meetings 
of advisory committees established under section 1114(f ) with respect 
to the determination are made on the record; in making the 
determination, the Secretary has considered applicable information 
(including clinical experience and medical, technical, and scientific 
evidence) with respect to the subject matter of the determination; and 
in the determination, provide a clear statement of the basis for the 
determination (including responses to comments received from the 
public), the assumptions underlying that basis, and make available to 
the public the data (other than proprietary data) considered in making 
the determination.''.
    (c) Improvements to the Medicare Advisory Committee Process.--
Section 1114 (42 U.S.C. 1314) is amended by adding at the end the 
following new subsection:
    ``(i)(1) Any advisory committee appointed under subsection (f ) to 
advise the Secretary on matters relating to the interpretation, 
application, or implementation of section 1862(a)(1) shall assure the 
full participation of a nonvoting member in the deliberations of the 
advisory committee, and shall provide such nonvoting member access to 
all information and data made available to voting members of the 
advisory committee, other than information that--
            ``(A) is exempt from disclosure pursuant to subsection (a) 
        of section 552 of title 5, United States Code, by reason of 
        subsection (b)(4) of such section (relating to trade secrets); 
        or
            ``(B) the Secretary determines would present a conflict of 
        interest relating to such nonvoting member.

[[Page 114 STAT. 2763A-547]]

    ``(2) If an advisory committee described in paragraph (1) organizes 
into panels of experts according to types of items or services 
considered by the advisory committee, any such panel of experts may 
report any recommendation with respect to such items or services 
directly to the Secretary without the prior approval of the advisory 
committee or an executive committee thereof.''.
    (d) Effective Date.--The amendments made by this section shall apply 
with respect to--
            (1) a review of any national or local coverage determination 
        filed,
            (2) a request to make such a determination made, and
            (3) a national coverage determination made,

on or after October 1, 2001.

            Subtitle D--Improving Access to New Technologies

SEC. 531. REIMBURSEMENT IMPROVEMENTS FOR NEW CLINICAL LABORATORY TESTS 
            AND DURABLE MEDICAL EQUIPMENT.

    (a) Payment Rule for New Laboratory Tests.--Section 
1833(h)(4)(B)(viii) (42 U.S.C. 1395l(h)(4)(B)(viii)) is amended by 
inserting before the period at the end the following: ``(or 100 percent 
of such median in the case of a clinical diagnostic laboratory test 
performed on or after January 1, 2001, that the Secretary determines is 
a new test for which no limitation amount has previously been 
established under this subparagraph)''.
    (b) Establishment of Coding and Payment Procedures for New Clinical 
Diagnostic Laboratory Tests and Other Items on a Fee Schedule.--Not 
later than 1 year after the date of the enactment of this Act, the 
Secretary of Health and Human Services shall establish procedures for 
coding and payment determinations for the categories of new clinical 
diagnostic laboratory tests and new durable medical equipment under part 
B of title XVIII of the Social Security Act that permit public 
consultation in a manner consistent with the procedures established for 
implementing coding modifications for ICD-9-CM.
    (c) Report on Procedures Used for Advanced, Improved Technologies.--
Not later than 1 year after the date of the enactment of this Act, the 
Secretary of Health and Human Services shall submit to Congress a report 
that identifies the specific procedures used by the Secretary under part 
B of title XVIII of the Social Security Act to adjust payments for 
clinical diagnostic laboratory tests and durable medical equipment which 
are classified to existing codes where, because of an advance in 
technology with respect to the test or equipment, there has been a 
significant increase or decrease in the resources used in the test or in 
the manufacture of the equipment, and there has been a significant 
improvement in the performance of the test or equipment. The report 
shall include such recommendations for changes in law as may be 
necessary to assure fair and appropriate payment levels under such part 
for such improved tests and equipment as reflects increased costs 
necessary to produce improved results.

SEC. 532. RETENTION OF HCPCS LEVEL III CODES.

    (a) In General.--The Secretary of Health and Human Services shall 
maintain and continue the use of level III codes of the HCPCS

[[Page 114 STAT. 2763A-548]]

coding system (as such system was in effect on August 16, 2000) through 
December 31, 2003, and shall make such codes available to the public.
    (b) Definition.--For purposes of this section, the term ``HCPCS 
Level III codes'' means the alphanumeric codes for local use under the 
Health Care Financing Administration Common Procedure Coding System 
(HCPCS).

SEC. 533. RECOGNITION OF NEW MEDICAL TECHNOLOGIES UNDER INPATIENT 
            HOSPITAL PPS.

    (a) Expediting Recognition of New Technologies Into Inpatient PPS 
Coding System.--
            (1) Report.--Not later than April 1, 2001, the Secretary of 
        Health and Human Services shall submit to Congress a report on 
        methods of expeditiously incorporating new medical services and 
        technologies into the clinical coding system used with respect 
        to payment for inpatient hospital services furnished under the 
        medicare program under title XVIII of the Social Security Act, 
        together with a detailed description of the Secretary's 
        preferred methods to achieve this purpose.
            (2) Implementation.--Not later than October 1, 2001, the 
        Secretary shall implement the preferred methods described in the 
        report transmitted pursuant to paragraph (1).

    (b) Ensuring Appropriate Payments for Hospitals Incorporating New 
Medical Services and Technologies.--
            (1) Establishment of mechanism.--Section 1886(d)(5) (42 
        U.S.C. 1395ww(d)(5)) is amended by adding at the end the 
        following new subparagraphs:

    ``(K)(i) Effective for discharges beginning on or after October 1, 
2001, the Secretary shall establish a mechanism to recognize the costs 
of new medical services and technologies under the payment system 
established under this subsection. Such mechanism shall be established 
after notice and opportunity for public comment (in the publications 
required by subsection (e)(5) for a fiscal year or otherwise).
    ``(ii) The mechanism established pursuant to clause (i) shall--
            ``(I) apply to a new medical service or technology if, based 
        on the estimated costs incurred with respect to discharges 
        involving such service or technology, the DRG prospective 
        payment rate otherwise applicable to such discharges under this 
        subsection is inadequate;
            ``(II) provide for the collection of data with respect to 
        the costs of a new medical service or technology described in 
        subclause (I) for a period of not less than two years and not 
        more than three years beginning on the date on which an 
        inpatient hospital code is issued with respect to the service or 
        technology;
            ``(III) subject to paragraph (4)(C)(iii), provide for 
        additional payment to be made under this subsection with respect 
        to discharges involving a new medical service or technology 
        described in subclause (I) that occur during the period 
        described in subclause (II) in an amount that adequately 
        reflects the estimated average cost of such service or 
        technology; and
            ``(IV) provide that discharges involving such a service or 
        technology that occur after the close of the period described in 
        subclause (II) will be classified within a new or existing

[[Page 114 STAT. 2763A-549]]

        diagnosis-related group with a weighting factor under paragraph 
        (4)(B) that is derived from cost data collected with respect to 
        discharges occurring during such period.

    ``(iii) For purposes of clause (ii)(II), the term `inpatient 
hospital code' means any code that is used with respect to inpatient 
hospital services for which payment may be made under this subsection 
and includes an alphanumeric code issued under the International 
Classification of Diseases, 9th Revision, Clinical Modification (`ICD-9-
CM') and its subsequent revisions.
    ``(iv) For purposes of clause (ii)(III), the term `additional 
payment' means, with respect to a discharge for a new medical service or 
technology described in clause (ii)(I), an amount that exceeds the 
prospective payment rate otherwise applicable under this subsection to 
discharges involving such service or technology that would be made but 
for this subparagraph.
    ``(v) The requirement under clause (ii)(III) for an additional 
payment may be satisfied by means of a new-technology group (described 
in subparagraph (L)), an add-on payment, a payment adjustment, or any 
other similar mechanism for increasing the amount otherwise payable with 
respect to a discharge under this subsection. The Secretary may not 
establish a separate fee schedule for such additional payment for such 
services and technologies, by utilizing a methodology established under 
subsection (a) or (h) of section 1834 to determine the amount of such 
additional payment, or by other similar mechanisms or methodologies.
    ``(vi) For purposes of this subparagraph and subparagraph (L), a 
medical service or technology will be considered a `new medical service 
or technology' if the service or technology meets criteria established 
by the Secretary after notice and an opportunity for public comment.
    ``(L)(i) In establishing the mechanism under subparagraph (K), the 
Secretary may establish new-technology groups into which a new medical 
service or technology will be classified if, based on the estimated 
average costs incurred with respect to discharges involving such service 
or technology, the DRG prospective payment rate otherwise applicable to 
such discharges under this subsection is inadequate.
    ``(ii) Such groups--
            ``(I) shall not be based on the costs associated with a 
        specific new medical service or technology; but
            ``(II) shall, in combination with the applicable 
        standardized amounts and the weighting factors assigned to such 
        groups under paragraph (4)(B), reflect such cost cohorts as the 
        Secretary determines are appropriate for all new medical 
        services and technologies that are likely to be provided as 
        inpatient hospital services in a fiscal year.

    ``(iii) The methodology for classifying specific hospital discharges 
within a diagnosis-related group under paragraph (4)(A) or a new-
technology group shall provide that a specific hospital discharge may 
not be classified within both a diagnosis-related group and a new-
technology group.''.
            (2) Prior consultation.--The Secretary of Health and Human 
        Services shall consult with groups representing hospitals, 
        physicians, and manufacturers of new medical technologies before 
        publishing the notice of proposed rulemaking required by section 
        1886(d)(5)(K)(i) of the Social Security Act (as added by 
        paragraph (1)).

[[Page 114 STAT. 2763A-550]]

            (3) Conforming amendment.--Section 1886(d)(4)(C)(i) (42 
        U.S.C. 1395ww(d)(4)(C)(i)) is amended by striking 
        ``technology,'' and inserting ``technology (including a new 
        medical service or technology under paragraph (5)(K)),''.

                      Subtitle E--Other Provisions

SEC. 541. INCREASE IN REIMBURSEMENT FOR BAD DEBT.

    Section 1861(v)(1)(T) (42 U.S.C. 1395x(v)(1)(T)) is amended--
            (1) in clause (ii), by striking ``and'' at the end;
            (2) in clause (iii)--
                    (A) by striking ``during a subsequent fiscal year'' 
                and inserting ``during fiscal year 2000''; and
                    (B) by striking the period at the end and inserting 
                ``, and''; and
            (3) by adding at the end the following new clause:
            ``(iv) for cost reporting periods beginning during a 
        subsequent fiscal year, by 30 percent of such amount otherwise 
        allowable.''.

SEC. 542. TREATMENT OF CERTAIN PHYSICIAN PATHOLOGY SERVICES UNDER 
            MEDICARE.

    (a) In General.--When an independent laboratory furnishes the 
technical component of a physician pathology service to a fee-for-
service medicare beneficiary who is an inpatient or outpatient of a 
covered hospital, the Secretary of Health and Human Services shall treat 
such component as a service for which payment shall be made to the 
laboratory under section 1848 of the Social Security Act (42 U.S.C. 
1395w-4) and not as an inpatient hospital service for which payment is 
made to the hospital under section 1886(d) of such Act (42 U.S.C. 
1395ww(d)) or as an outpatient hospital service for which payment is 
made to the hospital under section 1833(t) of such Act (42 U.S.C. 
1395l(t)).
    (b) Definitions.--For purposes of this section:
            (1) Covered hospital.--The term ``covered hospital'' means, 
        with respect to an inpatient or an outpatient, a hospital that 
        had an arrangement with an independent laboratory that was in 
        effect as of July 22, 1999, under which a laboratory furnished 
        the technical component of physician pathology services to fee-
        for-service medicare beneficiaries who were hospital inpatients 
        or outpatients, respectively, and submitted claims for payment 
        for such component to a medicare carrier (that has a contract 
        with the Secretary under section 1842 of the Social Security 
        Act, 42 U.S.C. 1395u) and not to such hospital.
            (2) Fee-for-service medicare beneficiary.--The term ``fee-
        for-service medicare beneficiary'' means an individual who--
                    (A) is entitled to benefits under part A, or 
                enrolled under part B, or both, of such title; and
                    (B) is not enrolled in any of the following:
                          (i) A Medicare+Choice plan under part C of 
                      such title.
                          (ii) A plan offered by an eligible 
                      organization under section 1876 of such Act (42 
                      U.S.C. 1395mm).

[[Page 114 STAT. 2763A-551]]

                          (iii) A program of all-inclusive care for the 
                      elderly (PACE) under section 1894 of such Act (42 
                      U.S.C. 1395eee).
                          (iv) A social health maintenance organization 
                      (SHMO) demonstration project established under 
                      section 4018(b) of the Omnibus Budget 
                      Reconciliation Act of 1987 (Public Law 100-203).

    (c) Effective Date.--This section shall apply to services furnished 
during the 2-year period beginning on January 1, 2001.
    (d) GAO Report.--
            (1) Study.--The Comptroller General of the United States 
        shall conduct a study of the effects of the previous provisions 
        of this section on hospitals and laboratories and access of fee-
        for-service medicare beneficiaries to the technical component of 
        physician pathology services.
            (2) Report.--Not later than April 1, 2002, the Comptroller 
        General shall submit to Congress a report on such study. The 
        report shall include recommendations about whether such 
        provisions should be extended after the end of the period 
        specified in subsection (c) for either or both inpatient and 
        outpatient hospital services, and whether the provisions should 
        be extended to other hospitals.

SEC. 543. EXTENSION OF ADVISORY OPINION AUTHORITY.

    Section 1128D(b)(6) (42 U.S.C. 1320a-7d(b)(6)) is amended by 
striking ``and before the date which is 4 years after such date of 
enactment''.

SEC. 544. CHANGE IN ANNUAL MEDPAC REPORTING.

    (a) Revision of Deadlines for Submission of Reports.--
            (1) In general.--Section 1805(b)(1)(D) (42 U.S.C. 1395b-
        6(b)(1)(D)) is amended by striking ``June 1 of each year 
        (beginning with 1998),'' and inserting ``June 15 of each 
        year,''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply beginning with 2001.

    (b) Requirement for on the Record Votes on Recommendations.--Section 
1805(b) (42 U.S.C. 1395b-6(b)) is amended by adding at the end the 
following new paragraph:
            ``(7) Voting and reporting requirements.--With respect to 
        each recommendation contained in a report submitted under 
        paragraph (1), each member of the Commission shall vote on the 
        recommendation, and the Commission shall include, by member, the 
        results of that vote in the report containing the 
        recommendation.''.

SEC. 545. DEVELOPMENT OF PATIENT ASSESSMENT INSTRUMENTS.

    (a) Development.--
            (1) In general.--Not later than January 1, 2005, the 
        Secretary of Health and Human Services shall submit to the 
        Committee on Ways and Means and the Committee on Commerce of the 
        House of Representatives and the Committee on Finance of the 
        Senate a report on the development of standard instruments for 
        the assessment of the health and functional status of patients, 
        for whom items and services described in subsection (b) are 
        furnished, and include in the report a recommendation on the use 
        of such standard instruments for payment purposes.

[[Page 114 STAT. 2763A-552]]

            (2) Design for comparison of common elements.--The Secretary 
        shall design such standard instruments in a manner such that--
                    (A) elements that are common to the items and 
                services described in subsection (b) may be readily 
                comparable and are statistically compatible;
                    (B) only elements necessary to meet program 
                objectives are collected; and
                    (C) the standard instruments supersede any other 
                assessment instrument used before that date.
            (3) Consultation.--In developing an assessment instrument 
        under paragraph (1), the Secretary shall consult with the 
        Medicare Payment Advisory Commission, the Agency for Healthcare 
        Research and Quality, and qualified organizations representing 
        providers of services and suppliers under title XVIII.

    (b) Description of Services.--For purposes of subsection (a), items 
and services described in this subsection are those items and services 
furnished to individuals entitled to benefits under part A, or enrolled 
under part B, or both of title XVIII of the Social Security Act for 
which payment is made under such title, and include the following:
            (1) Inpatient and outpatient hospital services.
            (2) Inpatient and outpatient rehabilitation services.
            (3) Covered skilled nursing facility services.
            (4) Home health services.
            (5) Physical or occupational therapy or speech-language 
        pathology services.
            (6) Items and services furnished to such individuals 
        determined to have end stage renal disease.
            (7) Partial hospitalization services and other mental health 
        services.
            (8) Any other service for which payment is made under such 
        title as the Secretary determines to be appropriate.

SEC. 546. GAO REPORT ON IMPACT OF THE EMERGENCY MEDICAL TREATMENT AND 
            ACTIVE LABOR ACT (EMTALA) ON HOSPITAL EMERGENCY DEPARTMENTS.

    (a) Report.--The Comptroller General of the United States shall 
submit a report to the Committee on Commerce and the Committee on Ways 
and Means of the House of Representatives and the Committee on Finance 
of the Senate by May 1, 2001, on the effect of the Emergency Medical 
Treatment and Active Labor Act on hospitals, emergency physicians, and 
physicians covering emergency department call throughout the United 
States.
    (b) Report Requirements.--The report should evaluate--
            (1) the extent to which hospitals, emergency physicians, and 
        physicians covering emergency department call provide 
        uncompensated services in relation to the requirements of 
        EMTALA;
            (2) the extent to which the regulatory requirements and 
        enforcement of EMTALA have expanded beyond the legislation's 
        original intent;
            (3) estimates for the total dollar amount of EMTALA-related 
        care uncompensated costs to emergency physicians, physicians 
        covering emergency department call, hospital emergency 
        departments, and other hospital services;

[[Page 114 STAT. 2763A-553]]

            (4) the extent to which different portions of the United 
        States may be experiencing different levels of uncompensated 
        EMTALA-related care;
            (5) the extent to which EMTALA would be classified as an 
        unfunded mandate if it were enacted today;
            (6) the extent to which States have programs to provide 
        financial support for such uncompensated care;
            (7) possible sources of funds, including medicare hospital 
        bad debt accounts, that are available to hospitals to assist 
        with the cost of such uncompensated care; and
            (8) the financial strain that illegal immigration 
        populations, the uninsured, and the underinsured place on 
        hospital emergency departments, other hospital services, 
        emergency physicians, and physicians covering emergency 
        department call.

    (c) Definition.--In this section, the terms ``Emergency Medical 
Treatment and Active Labor Act'' and ``EMTALA'' mean section 1867 of the 
Social Security Act (42 U.S.C. 1395dd).

SEC. 547. CLARIFICATION OF APPLICATION OF TEMPORARY PAYMENT INCREASES 
            FOR 2001.

    (a) Inpatient Hospital Services.--The payment increase provided 
under the following sections shall not apply to discharges occurring 
after fiscal year 2001 and shall not be taken into account in 
calculating the payment amounts applicable for discharges occurring 
after such fiscal year:
            (1) Section 301(b)(2)(A) (relating to acute care hospital 
        payment update).
            (2) Section 302(b) (relating to IME percentage adjustment).
            (3) Section 303(b)(2) (relating to DSH payments).

    (b) Skilled Nursing Facility Services.--The payment increase 
provided under section 311(b)(2) (relating to covered skilled nursing 
facility services) shall not apply to services furnished after fiscal 
year 2001 and shall not be taken into account in calculating the payment 
amounts applicable for services furnished after such fiscal year.
    (c) Home Health Services.--
            (1) Transitional allowance for full marketbasket increase.--
        The payment increase provided under section 502(b)(1)(B) shall 
        not apply to episodes and visits ending after fiscal year 2001 
        and shall not be taken into account in calculating the payment 
        amounts applicable for subsequent episodes and visits.
            (2) Temporary increase for rural home health services.--The 
        payment increase provided under section 508(a) for the period 
        beginning on April 1, 2001, and ending on September 30, 2002, 
        shall not apply to episodes and visits ending after such period, 
        and shall not be taken into account in calculating the payment 
        amounts applicable for episodes and visits occurring after such 
        period.

    (d) Calendar Year 2001 Provisions.--The payment increase provided 
under the following sections shall not apply after calendar year 2001 
and shall not be taken into account in calculating the payment amounts 
applicable for items and services furnished after such year:
            (1) Section 401(c)(2) (relating to covered OPD services).
            (2) Section 422(e)(2) (relating to renal dialysis services 
        paid for on a composite rate basis).

[[Page 114 STAT. 2763A-554]]

            (3) Section 423(a)(2)(B) (relating to ambulance services).
            (4) Section 425(b)(2) (relating to durable medical 
        equipment).
            (5) Section 426(b)(2) (relating to prosthetic devices and 
        orthotics and prosthetics).

 TITLE VI--PROVISIONS RELATING TO PART C (MEDICARE+CHOICE PROGRAM) AND 
                 OTHER MEDICARE MANAGED CARE PROVISIONS

               Subtitle A--Medicare+Choice Payment Reforms

SEC. 601. INCREASE IN MINIMUM PAYMENT AMOUNT.

    (a) In General.--Section 1853(c)(1)(B) (42 U.S.C. 1395w-23(c)(1)(B)) 
is amended--
            (1) by redesignating clause (ii) as clause (iv);
            (2) by inserting after clause (i) the following new clauses:
                          ``(ii) For 1999 and 2000, the minimum amount 
                      determined under clause (i) or this clause, 
                      respectively, for the preceding year, increased by 
                      the national per capita Medicare+Choice growth 
                      percentage described in paragraph (6)(A) 
                      applicable to 1999 or 2000, respectively.
                          ``(iii)(I) Subject to subclause (II), for 
                      2001, for any area in a Metropolitan Statistical 
                      Area with a population of more than 250,000, $525, 
                      and for any other area $475.
                          ``(II) In the case of an area outside the 50 
                      States and the District of Columbia, the amount 
                      specified in this clause shall not exceed 120 
                      percent of the amount determined under clause (ii) 
                      for such area for 2000.''; and
            (3) in clause (iv), as so redesignated--
                    (A) by striking ``a succeeding year'' and inserting 
                ``2002 and each succeeding year''; and
                    (B) by striking ``clause (i)'' and inserting 
                ``clause (iii)''.

    (b) Special Rule for January and February of 2001.--
            (1) In general.--Notwithstanding the amendments made by 
        subsection (a), for purposes of making payments under section 
        1853 of the Social Security Act (42 U.S.C. 1395w-23) for January 
        and February 2001, the annual Medicare+Choice capitation rate 
        for a Medicare+Choice payment area shall be calculated, and the 
        excess amount under section 1854(f )(1)(B) of such Act (42 
        U.S.C. 1395w-24(f )(1)(B)) shall be determined, as if such 
        amendments had not been enacted.
            (2) Construction.--Paragraph (1) shall not be taken into 
        account in computing such capitation rate for 2002 and 
        subsequent years.

SEC. 602. INCREASE IN MINIMUM PERCENTAGE INCREASE.

    (a) In General.--Section 1853(c)(1)(C) (42 U.S.C. 1395w-23(c)(1)(C)) 
is amended--

[[Page 114 STAT. 2763A-555]]

            (1) by redesignating clause (ii) as clause (iv);
            (2) by inserting after clause (i) the following new clauses:
                          ``(ii) For 1999 and 2000, 102 percent of the 
                      annual Medicare+Choice capitation rate under this 
                      paragraph for the area for the previous year.
                          ``(iii) For 2001, 103 percent of the annual 
                      Medicare+Choice capitation rate under this 
                      paragraph for the area for 2000.''; and
            (3) in clause (iv), as so redesignated, by striking ``a 
        subsequent year'' and inserting ``2002 and each succeeding 
        year''.

    (b) Application of Special Rule for January and February of 2001.--
The provisions of section 601(b) shall apply with respect to the 
amendments made by subsection (a) in the same manner as they apply to 
the amendments made by section 601(a).

SEC. 603. PHASE-IN OF RISK ADJUSTMENT.

    Section 1853(a)(3)(C) (42 U.S.C. 1395w-23(a)(3)(C)) is amended--
            (1) in clause (ii)--
                    (A) in subclause (I), by striking ``and 2001'' and 
                inserting ``and each succeeding year through 2003'' and 
                by striking ``and'' at the end; and
                    (B) by striking subclause (II) and inserting the 
                following new subclauses:
                                    ``(II) 30 percent of such capitation 
                                rate in 2004;
                                    ``(III) 50 percent of such 
                                capitation rate in 2005;
                                    ``(IV) 75 percent of such capitation 
                                rate in 2006; and
                                    ``(V) 100 percent of such capitation 
                                rate in 2007 and succeeding years.''; 
                                and
            (2) by adding at the end the following new clause:
                          ``(iii) Data for risk adjustment 
                      methodology.--Such risk adjustment methodology for 
                      2004 and each succeeding year, shall be based on 
                      data from inpatient hospital and ambulatory 
                      settings.''.

SEC. 604. TRANSITION TO REVISED MEDICARE+CHOICE PAYMENT RATES.

    (a) Announcement of Revised Medicare+Choice Payment Rates.--Within 2 
weeks after the date of the enactment of this Act, the Secretary of 
Health and Human Services shall determine, and shall announce (in a 
manner intended to provide notice to interested parties) Medicare+Choice 
capitation rates under section 1853 of the Social Security Act (42 
U.S.C. 1395w-23) for 2001, revised in accordance with the provisions of 
this Act.
    (b) Reentry Into Program Permitted for Medicare+Choice Programs.--A 
Medicare+Choice organization that provided notice to the Secretary of 
Health and Human Services before the date of the enactment of this Act 
that it was terminating its contract under part C of title XVIII of the 
Social Security Act or was reducing the service area of a 
Medicare+Choice plan offered under such part shall be permitted to 
continue participation under such part, or to maintain the service area 
of such plan, for 2001 if it submits the Secretary with the information 
described in section 1854(a)(1) of the Social Security Act (42 U.S.C. 
1395w-24(a)(1)) within 2 weeks after the date revised rates are 
announced by the Secretary under subsection (a).

[[Page 114 STAT. 2763A-556]]

    (c) Revised Submission of Proposed Premiums and Related 
Information.--If--
            (1) a Medicare+Choice organization provided notice to the 
        Secretary of Health and Human Services as of July 3, 2000, that 
        it was renewing its contract under part C of title XVIII of the 
        Social Security Act for all or part of the service area or areas 
        served under its current contract, and
            (2) any part of the service area or areas addressed in such 
        notice includes a payment area for which the Medicare+Choice 
        capitation rate under section 1853(c) of such Act (42 U.S.C. 
        1395w-23(c)) for 2001, as determined under subsection (a), is 
        higher than the rate previously determined for such year,

such organization shall revise its submission of the information 
described in section 1854(a)(1) of the Social Security Act (42 U.S.C. 
1395w-24(a)(1)), and shall submit such revised information to the 
Secretary, within 2 weeks after the date revised rates are announced by 
the Secretary under subsection (a). In making such submission, the 
organization may only reduce beneficiary premiums, reduce beneficiary 
cost-sharing, enhance benefits, utilize the stabilization fund described 
in section 1854(f )(2) of such Act (42 U.S.C. 1395w-24(f )(2)), or 
stabilize or enhance beneficiary access to providers (so long as such 
stabilization or enhancement does not result in increased beneficiary 
premiums, increased beneficiary cost-sharing, or reduced benefits).
    (d) Waiver of Limits on Stabilization Fund.--Any regulatory 
provision that limits the proportion of the excess amount that can be 
withheld in such stabilization fund for a contract period shall not 
apply with respect to submissions described in subsections (b) and (c).
    (e) Disregard of New Rate Announcement in Applying Pass-Through for 
New National Coverage Determinations.--For purposes of applying section 
1852(a)(5) of the Social Security Act (42 U.S.C. 1395w-22(a)(5)), the 
announcement of revised rates under subsection (a) shall not be treated 
as an announcement under section 1853(b) of such Act (42 U.S.C. 1395w-
23(b)).

SEC. 605. REVISION OF PAYMENT RATES FOR ESRD PATIENTS ENROLLED IN 
            MEDICARE+CHOICE PLANS.

    (a) In General.--Section 1853(a)(1)(B) (42 U.S.C. 1395w-23(a)(1)(B)) 
is amended by adding at the end the following: ``In establishing such 
rates, the Secretary shall provide for appropriate adjustments to 
increase each rate to reflect the demonstration rate (including the risk 
adjustment methodology associated with such rate) of the social health 
maintenance organization end-stage renal disease capitation 
demonstrations (established by section 2355 of the Deficit Reduction Act 
of 1984, as amended by section 13567(b) of the Omnibus Budget 
Reconciliation Act of 1993), and shall compute such rates by taking into 
account such factors as renal treatment modality, age, and the 
underlying cause of the end-stage renal disease.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to payments for months beginning with January 2002.
    (c) Publication.--Not later than 6 months after the date of the 
enactment of this Act, the Secretary of Health and Human Services shall 
publish for public comment a description of the appropriate adjustments 
described in the last sentence of section

[[Page 114 STAT. 2763A-557]]

1853(a)(1)(B) of the Social Security Act (42 U.S.C. 1395w-23(a)(1)(B)), 
as added by subsection (a). The Secretary shall publish such adjustments 
in final form by not later than July 1, 2001, so that the amendment made 
by subsection (a) is implemented on a timely basis consistent with 
subsection (b).

SEC. 606. PERMITTING PREMIUM REDUCTIONS AS ADDITIONAL BENEFITS UNDER 
            MEDICARE+CHOICE PLANS.

    (a) In General.--
            (1) Authorization of part b premium reductions.--Section 
        1854(f )(1) (42 U.S.C. 1395w-24(f )(1)) is amended--
                    (A) by redesignating subparagraph (E) as 
                subparagraph (F); and
                    (B) by inserting after subparagraph (D) the 
                following new subparagraph:
                    ``(E) Premium reductions.--
                          ``(i) In general.--Subject to clause (ii), as 
                      part of providing any additional benefits required 
                      under subparagraph (A), a Medicare+Choice 
                      organization may elect a reduction in its payments 
                      under section 1853(a)(1)(A) with respect to a 
                      Medicare+Choice plan and the Secretary shall apply 
                      such reduction to reduce the premium under section 
                      1839 of each enrollee in such plan as provided in 
                      section 1840(i).
                          ``(ii) Amount of reduction.--The amount of the 
                      reduction under clause (i) with respect to any 
                      enrollee in a Medicare+Choice plan--
                                    ``(I) may not exceed 125 percent of 
                                the premium described under section 
                                1839(a)(3); and
                                    ``(II) shall apply uniformly to each 
                                enrollee of the Medicare+Choice plan to 
                                which such reduction applies.''.
            (2) Conforming amendments.--
                    (A) Adjustment of payments to medicare+choice 
                organizations.--Section 1853(a)(1)(A) (42 U.S.C. 1395w-
                23(a)(1)(A)) is amended by inserting ``reduced by the 
                amount of any reduction elected under section 1854(f 
                )(1)(E) and'' after ``for that area,''.
                    (B) Adjustment and payment of part b premiums.--
                          (i) Adjustment of premiums.--Section 
                      1839(a)(2) (42 U.S.C. 1395r(a)(2)) is amended by 
                      striking ``shall'' and all that follows and 
                      inserting the following: ``shall be the amount 
                      determined under paragraph (3), adjusted as 
                      required in accordance with subsections (b), (c), 
                      and (f ), and to reflect 80 percent of any 
                      reduction elected under section 1854(f )(1)(E).''.
                          (ii) Payment of premiums.--Section 1840 (42 
                      U.S.C. 1395s) is amended by adding at the end the 
                      following new subsection:

    ``(i) In the case of an individual enrolled in a Medicare+Choice 
plan, the Secretary shall provide for necessary adjustments of the 
monthly beneficiary premium to reflect 80 percent of any reduction 
elected under section 1854(f )(1)(E). To the extent to which the 
Secretary determines that such an adjustment is appropriate, with the 
concurrence of any agency responsible for the administration of such 
benefits, such premium adjustment may be provided

[[Page 114 STAT. 2763A-558]]

directly, as an adjustment to any social security, railroad retirement, 
or civil service retirement benefits, or, in the case of an individual 
who receives medical assistance under title XIX for medicare costs 
described in section 1905(p)(3)(A)(ii), as an adjustment to the amount 
otherwise owed by the State for such medical assistance.''.
                    (C) Information comparing plan premiums under part 
                c.--Section 1851(d)(4)(B) (42 U.S.C. 1395w-21(d)(4)(B)) 
                is amended--
                          (i) by striking ``Premiums.--The'' and 
                      inserting ``Premiums.--
                          ``(i) In general.--The''; and
                          (ii) by adding at the end the following new 
                      clause:
                          ``(ii) Reductions.--The reduction in part B 
                      premiums, if any.''.
                    (D) Treatment of reduction for purposes of 
                determining government contribution under part b.--
                Section 1844 (42 U.S.C. 1395w) is amended by adding at 
                the end the following new subsection:

    ``(c) The Secretary shall determine the Government contribution 
under subparagraphs (A) and (B) of subsection (a)(1) without regard to 
any premium reduction resulting from an election under section 1854(f 
)(1)(E).''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to years beginning with 2003.

SEC. 607. FULL IMPLEMENTATION OF RISK ADJUSTMENT FOR CONGESTIVE HEART 
            FAILURE ENROLLEES FOR 2001.

    (a) In General.--Section 1853(a)(3)(C) (42 U.S.C. 1395w-23(a)(3)(C)) 
is amended--
            (1) in clause (ii), by striking ``Such risk adjustment'' and 
        inserting ``Except as provided in clause (iii), such risk 
        adjustment''; and
            (2) by adding at the end the following new clause:
                          ``(iii) Full implementation of risk adjustment 
                      for congestive heart failure enrollees for 2001.--
                                    ``(I) Exemption from phase-in.--
                                Subject to subclause (II), the Secretary 
                                shall fully implement the risk 
                                adjustment methodology described in 
                                clause (i) with respect to each 
                                individual who has had a qualifying 
                                congestive heart failure inpatient 
                                diagnosis (as determined by the 
                                Secretary under such risk adjustment 
                                methodology) during the period beginning 
                                on July 1, 1999, and ending on June 30, 
                                2000, and who is enrolled in a 
                                coordinated care plan that is the only 
                                coordinated care plan offered on January 
                                1, 2001, in the service area of the 
                                individual.
                                    ``(II) Period of application.--
                                Subclause (I) shall only apply during 
                                the 1-year period beginning on January 
                                1, 2001.''.

    (b) Exclusion From Determination of the Budget Neutrality Factor.--
Section 1853(c)(5) (42 U.S.C. 1395w-23(c)(5)) is amended by striking 
``subsection (i)'' and inserting ``subsections (a)(3)(C)(iii) and (i)''.

[[Page 114 STAT. 2763A-559]]

SEC. 608. EXPANSION OF APPLICATION OF MEDICARE+CHOICE NEW ENTRY BONUS.

    (a) In General.--Section 1853(i)(1) (42 U.S.C. 1395w-23(i)(1)) is 
amended in the matter preceding subparagraph (A) by inserting ``, or 
filed notice with the Secretary as of October 3, 2000, that they will 
not be offering such a plan as of January 1, 2001'' after ``January 1, 
2000''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply as if included in the enactment of BBRA.

SEC. 609. REPORT ON INCLUSION OF CERTAIN COSTS OF THE DEPARTMENT OF 
            VETERANS AFFAIRS AND MILITARY FACILITY SERVICES IN 
            CALCULATING MEDICARE+CHOICE PAYMENT RATES.

    The Secretary of Health and Human Services shall report to Congress 
by not later than January 1, 2003, on a method to phase-in the costs of 
military facility services furnished by the Department of Veterans 
Affairs, and the costs of military facility services furnished by the 
Department of Defense, to medicare-eligible beneficiaries in the 
calculation of an area's Medicare+Choice capitation payment. Such report 
shall include on a county-by-county basis--
            (1) the actual or estimated cost of such services to 
        medicare-eligible beneficiaries;
            (2) the change in Medicare+Choice capitation payment rates 
        if such costs are included in the calculation of payment rates;
            (3) one or more proposals for the implementation of payment 
        adjustments to Medicare+Choice plans in counties where the 
        payment rate has been affected due to the failure to calculate 
        the cost of such services to medicare-eligible beneficiaries; 
        and
            (4) a system to ensure that when a Medicare+Choice enrollee 
        receives covered services through a facility of the Department 
        of Veterans Affairs or the Department of Defense there is an 
        appropriate payment recovery to the medicare program under title 
        XVIII of the Social Security Act.

                Subtitle B--Other Medicare+Choice Reforms

SEC. 611. PAYMENT OF ADDITIONAL AMOUNTS FOR NEW BENEFITS COVERED DURING 
            A CONTRACT TERM.

    (a) In General.--Section 1853(c)(7) (42 U.S.C. 1395w-23(c)(7)) is 
amended to read as follows:
            ``(7) Adjustment for national coverage determinations and 
        legislative changes in benefits.--If the Secretary makes a 
        determination with respect to coverage under this title or there 
        is a change in benefits required to be provided under this part 
        that the Secretary projects will result in a significant 
        increase in the costs to Medicare+Choice of providing benefits 
        under contracts under this part (for periods after any period 
        described in section 1852(a)(5)), the Secretary shall adjust 
        appropriately the payments to such organizations under this 
        part. Such projection and adjustment shall be based on an 
        analysis by the Chief Actuary of the Health Care Financing

[[Page 114 STAT. 2763A-560]]

        Administration of the actuarial costs associated with the new 
        benefits.''.

    (b) Conforming Amendment.--Section 1852(a)(5) (42 U.S.C. 1395w-
22(a)(5)) is amended--
            (1) in the heading, by inserting ``and legislative changes 
        in benefits'' after ``National coverage determinations'';
            (2) by inserting ``or legislative change in benefits 
        required to be provided under this part'' after ``national 
        coverage determination'';
            (3) in subparagraph (A), by inserting ``or legislative 
        change in benefits'' after ``such determination'';
            (4) in subparagraph (B), by inserting ``or legislative 
        change'' after ``if such coverage determination''; and
            (5) by adding at the end the following:
        ``The projection under the previous sentence shall be based on 
        an analysis by the Chief Actuary of the Health Care Financing 
        Administration of the actuarial costs associated with the 
        coverage determination or legislative change in benefits.''.

    (c) Effective Date.--The amendments made by this section are 
effective on the date of the enactment of this Act and shall apply to 
national coverage determinations and legislative changes in benefits 
occurring on or after such date.

SEC. 612. RESTRICTION ON IMPLEMENTATION OF SIGNIFICANT NEW REGULATORY 
            REQUIREMENTS MIDYEAR.

    (a) In General.--Section 1856(b) (42 U.S.C. 1395w-26(b)) is amended 
by adding at the end the following new paragraph:
            ``(4) Prohibition of midyear implementation of significant 
        new regulatory requirements.--The Secretary may not implement, 
        other than at the beginning of a calendar year, regulations 
        under this section that impose new, significant regulatory 
        requirements on a Medicare+Choice organization or plan.''.

    (b) Effective Date.--The amendment made by subsection (a) takes 
effect on the date of the enactment of this Act.

SEC. 613. TIMELY APPROVAL OF MARKETING MATERIAL THAT FOLLOWS MODEL 
            MARKETING LANGUAGE.

    (a) In General.--Section 1851(h) (42 U.S.C. 1395w-21(h)) is 
amended--
            (1) in paragraph (1)(A), by inserting ``(or 10 days in the 
        case described in paragraph (5))'' after ``45 days''; and
            (2) by adding at the end the following new paragraph:
            ``(5) Special treatment of marketing material following 
        model marketing language.--In the case of marketing material of 
        an organization that uses, without modification, proposed model 
        language specified by the Secretary, the period specified in 
        paragraph (1)(A) shall be reduced from 45 days to 10 days.''.

    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to marketing material submitted on or after January 1, 2001.

SEC. 614. AVOIDING DUPLICATIVE REGULATION.

    (a) In General.--Section 1856(b)(3)(B) (42 U.S.C. 1395w-26(b)(3)(B)) 
is amended--
            (1) in clause (i), by inserting ``(including cost-sharing 
        requirements)'' after ``Benefit requirements''; and

[[Page 114 STAT. 2763A-561]]

            (2) by adding at the end the following new clause:
                          ``(iv) Requirements relating to marketing 
                      materials and summaries and schedules of benefits 
                      regarding a Medicare+Choice plan.''.

    (b) Effective Date.--The amendments made by subsection (a) take 
effect on the date of the enactment of this Act.

SEC. 615. ELECTION OF UNIFORM LOCAL COVERAGE POLICY FOR MEDICARE+CHOICE 
            PLAN COVERING MULTIPLE LOCALITIES.

    Section 1852(a)(2) (42 U.S.C. 1395w-22(a)(2)) is amended by adding 
at the end the following new subparagraph:
                    ``(C) Election of uniform coverage policy.--In the 
                case of a Medicare+Choice organization that offers a 
                Medicare+Choice plan in an area in which more than one 
                local coverage policy is applied with respect to 
                different parts of the area, the organization may elect 
                to have the local coverage policy for the part of the 
                area that is most beneficial to Medicare+Choice 
                enrollees (as identified by the Secretary) apply with 
                respect to all Medicare+Choice enrollees enrolled in the 
                plan.''.

SEC. 616. ELIMINATING HEALTH DISPARITIES IN MEDICARE+CHOICE PROGRAM.

    (a) Quality Assurance Program Focus on Racial and Ethnic 
Minorities.--Subparagraphs (A) and (B) of section 1852(e)(2) (42 U.S.C. 
1395w-22(e)(2)) are each amended by adding at the end the following:
                ``Such program shall include a separate focus (with 
                respect to all the elements described in this 
                subparagraph) on racial and ethnic minorities.''.

    (b) Report.--Section 1852(e) (42 U.S.C. 1395w-22(e)) is amended by 
adding at the end the following new paragraph:
            ``(5) Report to congress.--
                    ``(A) In general.--Not later than 2 years after the 
                date of the enactment of this paragraph, and biennially 
                thereafter, the Secretary shall submit to Congress a 
                report regarding how quality assurance programs 
                conducted under this subsection focus on racial and 
                ethnic minorities.
                    ``(B) Contents of report.--Each such report shall 
                include the following:
                          ``(i) A description of the means by which such 
                      programs focus on such racial and ethnic 
                      minorities.
                          ``(ii) An evaluation of the impact of such 
                      programs on eliminating health disparities and on 
                      improving health outcomes, continuity and 
                      coordination of care, management of chronic 
                      conditions, and consumer satisfaction.
                          ``(iii) Recommendations on ways to reduce 
                      clinical outcome disparities among racial and 
                      ethnic minorities.''.

SEC. 617. MEDICARE+CHOICE PROGRAM COMPATIBILITY WITH EMPLOYER OR UNION 
            GROUP HEALTH PLANS.

    (a) In General.--Section 1857 (42 U.S.C. 1395w-27) is amended by 
adding at the end the following new subsection:

[[Page 114 STAT. 2763A-562]]

    ``(i) Medicare+Choice Program Compatibility With Employer or Union 
Group Health Plans.--To facilitate the offering of Medicare+Choice plans 
under contracts between Medicare+Choice organizations and employers, 
labor organizations, or the trustees of a fund established by one or 
more employers or labor organizations (or combination thereof ) to 
furnish benefits to the entity's employees, former employees (or 
combination thereof ) or members or former members (or combination 
thereof ) of the labor organizations, the Secretary may waive or modify 
requirements that hinder the design of, the offering of, or the 
enrollment in such Medicare+Choice plans.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to years beginning with 2001.

SEC. 618. SPECIAL MEDIGAP ENROLLMENT ANTIDISCRIMINATION PROVISION FOR 
            CERTAIN BENEFICIARIES.

    (a) Disenrollment Window in Accordance With Beneficiary's 
Circumstance.--Section 1882(s)(3) (42 U.S.C. 1395ss(s)(3)) is amended--
            (1) in subparagraph (A), in the matter following clause 
        (iii), by striking ``, subject to subparagraph (E), seeks to 
        enroll under the policy not later than 63 days after the date of 
        the termination of enrollment described in such subparagraph'' 
        and inserting ``seeks to enroll under the policy during the 
        period specified in subparagraph (E)''; and
            (2) by striking subparagraph (E) and inserting the following 
        new subparagraph:

    ``(E) For purposes of subparagraph (A), the time period specified in 
this subparagraph is--
            ``(i) in the case of an individual described in subparagraph 
        (B)(i), the period beginning on the date the individual receives 
        a notice of termination or cessation of all supplemental health 
        benefits (or, if no such notice is received, notice that a claim 
        has been denied because of such a termination or cessation) and 
        ending on the date that is 63 days after the applicable notice;
            ``(ii) in the case of an individual described in clause 
        (ii), (iii), (v), or (vi) of subparagraph (B) whose enrollment 
        is terminated involuntarily, the period beginning on the date 
        that the individual receives a notice of termination and ending 
        on the date that is 63 days after the date the applicable 
        coverage is terminated;
            ``(iii) in the case of an individual described in 
        subparagraph (B)(iv)(I), the period beginning on the earlier of 
        (I) the date that the individual receives a notice of 
        termination, a notice of the issuer's bankruptcy or insolvency, 
        or other such similar notice, if any, and (II) the date that the 
        applicable coverage is terminated, and ending on the date that 
        is 63 days after the date the coverage is terminated;
            ``(iv) in the case of an individual described in clause 
        (ii), (iii), (iv)(II), (iv)(III), (v), or (vi) of subparagraph 
        (B) who disenrolls voluntarily, the period beginning on the date 
        that is 60 days before the effective date of the disenrollment 
        and ending on the date that is 63 days after such effective 
        date; and
            ``(v) in the case of an individual described in subparagraph 
        (B) but not described in the preceding provisions of this

[[Page 114 STAT. 2763A-563]]

        subparagraph, the period beginning on the effective date of the 
        disenrollment and ending on the date that is 63 days after such 
        effective date.''.

    (b) Extended Medigap Access for Interrupted Trial Periods.--Section 
1882(s)(3) (42 U.S.C. 1395ss(s)(3)), as amended by subsection (a), is 
further amended by adding at the end the following new subparagraph:
    ``(F)(i) Subject to clause (ii), for purposes of this paragraph--
            ``(I) in the case of an individual described in subparagraph 
        (B)(v) (or deemed to be so described, pursuant to this 
        subparagraph) whose enrollment with an organization or provider 
        described in subclause (II) of such subparagraph is 
        involuntarily terminated within the first 12 months of such 
        enrollment, and who, without an intervening enrollment, enrolls 
        with another such organization or provider, such subsequent 
        enrollment shall be deemed to be an initial enrollment described 
        in such subparagraph; and
            ``(II) in the case of an individual described in clause (vi) 
        of subparagraph (B) (or deemed to be so described, pursuant to 
        this subparagraph) whose enrollment with a plan or in a program 
        described in such clause is involuntarily terminated within the 
        first 12 months of such enrollment, and who, without an 
        intervening enrollment, enrolls in another such plan or program, 
        such subsequent enrollment shall be deemed to be an initial 
        enrollment described in such clause.

    ``(ii) For purposes of clauses (v) and (vi) of subparagraph (B), no 
enrollment of an individual with an organization or provider described 
in clause (v)(II), or with a plan or in a program described in clause 
(vi), may be deemed to be an initial enrollment under this clause after 
the 2-year period beginning on the date on which the individual first 
enrolled with such an organization, provider, plan, or program.''.

SEC. 619. RESTORING EFFECTIVE DATE OF ELECTIONS AND CHANGES OF ELECTIONS 
            OF MEDICARE+CHOICE PLANS.

    (a) Open Enrollment.--Section 1851(f )(2) (42 U.S.C. 1395w-21(f 
)(2)) is amended by striking ``, except that if such election or change 
is made after the 10th day of any calendar month, then the election or 
change shall not take effect until the first day of the second calendar 
month following the date on which the election or change is made''.
    (b) Effective Date.--The amendment made by this section shall apply 
to elections and changes of coverage made on or after June 1, 2001.

SEC. 620. PERMITTING ESRD BENEFICIARIES TO ENROLL IN ANOTHER 
            MEDICARE+CHOICE PLAN IF THE PLAN IN WHICH THEY ARE ENROLLED 
            IS TERMINATED.

    (a) In General.--Section 1851(a)(3)(B) (42 U.S.C. 1395w-21(a)(3)(B)) 
is amended by striking ``except that'' and all that follows and 
inserting the following: ``except that--
                          ``(i) an individual who develops end-stage 
                      renal disease while enrolled in a Medicare+Choice 
                      plan may continue to be enrolled in that plan; and
                          ``(ii) in the case of such an individual who 
                      is enrolled in a Medicare+Choice plan under clause 
                      (i) (or subsequently under this clause), if the 
                      enrollment

[[Page 114 STAT. 2763A-564]]

                      is discontinued under circumstances described in 
                      section 1851(e)(4)(A), then the individual will be 
                      treated as a `Medicare+Choice eligible individual' 
                      for purposes of electing to continue enrollment in 
                      another Medicare+Choice plan.''.

    (b) Effective Date.--
            (1) In general.--The amendment made by subsection (a) shall 
        apply to terminations and discontinuations occurring on or after 
        the date of the enactment of this Act.
            (2) Application to prior plan terminations.--Clause (ii) of 
        section 1851(a)(3)(B) of the Social Security Act (as inserted by 
        subsection (a)) shall also apply to individuals whose enrollment 
        in a Medicare+Choice plan was terminated or discontinued after 
        December 31, 1998, and before the date of the enactment of this 
        Act. In applying this paragraph, such an individual shall be 
        treated, for purposes of part C of title XVIII of the Social 
        Security Act, as having discontinued enrollment in such a plan 
        as of the date of the enactment of this Act.

SEC. 621. PROVIDING CHOICE FOR SKILLED NURSING FACILITY SERVICES UNDER 
            THE MEDICARE+CHOICE PROGRAM.

    (a) In General.--Section 1852 (42 U.S.C. 1395w-22) is amended by 
adding at the end the following new subsection:
    ``(l) Return to Home Skilled Nursing Facilities for Covered Post-
Hospital Extended Care Services.--
            ``(1) Ensuring return to home snf.--
                    ``(A) In general.--In providing coverage of post-
                hospital extended care services, a Medicare+Choice plan 
                shall provide for such coverage through a home skilled 
                nursing facility if the following conditions are met:
                          ``(i) Enrollee election.--The enrollee elects 
                      to receive such coverage through such facility.
                          ``(ii) SNF agreement.--The facility has a 
                      contract with the Medicare+Choice organization for 
                      the provision of such services, or the facility 
                      agrees to accept substantially similar payment 
                      under the same terms and conditions that apply to 
                      similarly situated skilled nursing facilities that 
                      are under contract with the Medicare+Choice 
                      organization for the provision of such services 
                      and through which the enrollee would otherwise 
                      receive such services.
                    ``(B) Manner of payment to home snf.--The 
                organization shall provide payment to the home skilled 
                nursing facility consistent with the contract or the 
                agreement described in subparagraph (A)(ii), as the case 
                may be.
            ``(2) No less favorable coverage.--The coverage provided 
        under paragraph (1) (including scope of services, cost-sharing, 
        and other criteria of coverage) shall be no less favorable to 
        the enrollee than the coverage that would be provided to the 
        enrollee with respect to a skilled nursing facility the post-
        hospital extended care services of which are otherwise covered 
        under the Medicare+Choice plan.
            ``(3) Rule of construction.--Nothing in this subsection 
        shall be construed to do the following:

[[Page 114 STAT. 2763A-565]]

                    ``(A) To require coverage through a skilled nursing 
                facility that is not otherwise qualified to provide 
                benefits under part A for medicare beneficiaries not 
                enrolled in a Medicare+Choice plan.
                    ``(B) To prevent a skilled nursing facility from 
                refusing to accept, or imposing conditions upon the 
                acceptance of, an enrollee for the receipt of post-
                hospital extended care services.
            ``(4) Definitions.--In this subsection:
                    ``(A) Home skilled nursing facility.--The term `home 
                skilled nursing facility' means, with respect to an 
                enrollee who is entitled to receive post-hospital 
                extended care services under a Medicare+Choice plan, any 
                of the following skilled nursing facilities:
                          ``(i) SNF residence at time of admission.--The 
                      skilled nursing facility in which the enrollee 
                      resided at the time of admission to the hospital 
                      preceding the receipt of such post-hospital 
                      extended care services.
                          ``(ii) SNF in continuing care retirement 
                      community.--A skilled nursing facility that is 
                      providing such services through a continuing care 
                      retirement community (as defined in subparagraph 
                      (B)) which provided residence to the enrollee at 
                      the time of such admission.
                          ``(iii) SNF residence of spouse at time of 
                      discharge.--The skilled nursing facility in which 
                      the spouse of the enrollee is residing at the time 
                      of discharge from such hospital.
                    ``(B) Continuing care retirement community.--The 
                term `continuing care retirement community' means, with 
                respect to an enrollee in a Medicare+Choice plan, an 
                arrangement under which housing and health-related 
                services are provided (or arranged) through an 
                organization for the enrollee under an agreement that is 
                effective for the life of the enrollee or for a 
                specified period.''.

    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to contracts entered into or renewed on or after the 
date of the enactment of this Act.
    (c) MedPAC Study.--
            (1) Study.--The Medicare Payment Advisory Commission shall 
        conduct a study analyzing the effects of the amendment made by 
        subsection (a) on Medicare+Choice organizations. In conducting 
        such study, the Commission shall examine the effects (if any) 
        such amendment has had--
                    (A) on the scope of additional benefits provided 
                under the Medicare+Choice program;
                    (B) on the administrative and other costs incurred 
                by Medicare+Choice organizations; and
                    (C) on the contractual relationships between such 
                organizations and skilled nursing facilities.
            (2) Report.--Not later than 2 years after the date of the 
        enactment of this Act, the Commission shall submit to Congress a 
        report on the study conducted under paragraph (1).

[[Page 114 STAT. 2763A-566]]

SEC. 622. PROVIDING FOR ACCOUNTABILITY OF MEDICARE+CHOICE PLANS.

    (a) Mandatory Review of ACR Submissions by the Chief Actuary of the 
Health Care Financing Administration.--Section 1854(a)(5)(A) (42 U.S.C. 
1395w-24(a)(5)(A)) is amended--
            (1) by striking ``value'' and inserting ``values''; and
            (2) by adding at the end the following: ``The Chief Actuary 
        of the Health Care Financing Administration shall review the 
        actuarial assumptions and data used by the Medicare+Choice 
        organization with respect to such rates, amounts, and values so 
        submitted to determine the appropriateness of such assumptions 
        and data.''.

    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to submissions made on or after May 1, 2001.

SEC. 623. INCREASED CIVIL MONEY PENALTY FOR MEDICARE+CHOICE 
            ORGANIZATIONS THAT TERMINATE CONTRACTS MID-YEAR.

    (a) In General.--Section 1857(g)(3) (42 U.S.C. 1395w-27(g)(3)) is 
amended by adding at the end the following new subparagraph:
                    ``(D) Civil monetary penalties of not more than 
                $100,000, or such higher amount as the Secretary may 
                establish by regulation, where the finding under 
                subsection (c)(2)(A) is based on the organization's 
                termination of its contract under this section other 
                than at a time and in a manner provided for under 
                subsection (a).''.

    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to terminations occurring after the date of the enactment of this 
Act.

                 Subtitle C--Other Managed Care Reforms

SEC. 631. ONE-YEAR EXTENSION OF SOCIAL HEALTH MAINTENANCE ORGANIZATION 
            (SHMO) DEMONSTRATION PROJECT.

    Section 4018(b)(1) of the Omnibus Budget Reconciliation Act of 1987, 
as amended by section 531(a)(1) of BBRA (113 Stat. 1501A-388), is 
amended by striking ``18 months'' and inserting ``30 months''.

SEC. 632. REVISED TERMS AND CONDITIONS FOR EXTENSION OF MEDICARE 
            COMMUNITY NURSING ORGANIZATION (CNO) DEMONSTRATION PROJECT.

    (a) In General.--Section 532 of BBRA (113 Stat. 1501A-388) is 
amended--
            (1) in subsection (a), by striking the second sentence; and
            (2) by striking subsection (b) and inserting the following 
        new subsection:

    ``(b) Terms and Conditions.--
            ``(1) January through september 2000.--For the 9-month 
        period beginning with January 2000, any such demonstration 
        project shall be conducted under the same terms and conditions 
        as applied to such demonstration during 1999.
            ``(2) October 2000 through december 2001.--For the 15-month 
        period beginning with October 2000, any such demonstration 
        project shall be conducted under the same terms and conditions 
        as applied to such demonstration during 1999, except that the 
        following modifications shall apply:

[[Page 114 STAT. 2763A-567]]

                    ``(A) Basic capitation rate.--The basic capitation 
                rate paid for services covered under the project (other 
                than case management services) per enrollee per month 
                and furnished during--
                          ``(i) the period beginning with October 1, 
                      2000, and ending with December 31, 2000, shall be 
                      determined by actuarially adjusting the actual 
                      capitation rate paid for such services in 1999 for 
                      inflation, utilization, and other changes to the 
                      CNO service package, and by reducing such adjusted 
                      capitation rate by 10 percent in the case of the 
                      demonstration sites located in Arizona, Minnesota, 
                      and Illinois, and 15 percent for the demonstration 
                      site located in New York; and
                          ``(ii) 2001 shall be determined by actuarially 
                      adjusting the capitation rate determined under 
                      clause (i) for inflation, utilization, and other 
                      changes to the CNO service package.
                    ``(B) Targeted case management fee.--Effective 
                October 1, 2000--
                          ``(i) the case management fee per enrollee per 
                      month for--
                                    ``(I) the period described in 
                                subparagraph (A)(i) shall be determined 
                                by actuarially adjusting the case 
                                management fee for 1999 for inflation; 
                                and
                                    ``(II) 2001 shall be determined by 
                                actuarially adjusting the amount 
                                determined under subclause (I) for 
                                inflation; and
                          ``(ii) such case management fee shall be paid 
                      only for enrollees who are classified as 
                      moderately frail or frail pursuant to criteria 
                      established by the Secretary.
                    ``(C) Greater uniformity in clinical features among 
                sites.--Each project shall implement for each site--
                          ``(i) protocols for periodic telephonic 
                      contact with enrollees based on--
                                    ``(I) the results of such 
                                standardized written health assessment; 
                                and
                                    ``(II) the application of 
                                appropriate care planning approaches;
                          ``(ii) disease management programs for 
                      targeted diseases (such as congestive heart 
                      failure, arthritis, diabetes, and hypertension) 
                      that are highly prevalent in the enrolled 
                      populations;
                          ``(iii) systems and protocols to track 
                      enrollees through hospitalizations, including pre-
                      admission planning, concurrent management during 
                      inpatient hospital stays, and post-discharge 
                      assessment, planning, and follow-up; and
                          ``(iv) standardized patient educational 
                      materials for specified diseases and health 
                      conditions.
                    ``(D) Quality improvement.--Each project shall 
                implement at each site once during the 15-month period--
                          ``(i) enrollee satisfaction surveys; and
                          ``(ii) reporting on specified quality 
                      indicators for the enrolled population.

    ``(c) Evaluation.--

[[Page 114 STAT. 2763A-568]]

            ``(1) Preliminary report.--Not later than July 1, 2001, the 
        Secretary of Health and Human Services shall submit to the 
        Committees on Ways and Means and Commerce of the House of 
        Representatives and the Committee on Finance of the Senate a 
        preliminary report that--
                    ``(A) evaluates such demonstration projects for the 
                period beginning July 1, 1997, and ending December 31, 
                1999, on a site-specific basis with respect to the 
                impact on per beneficiary spending, specific health 
                utilization measures, and enrollee satisfaction; and
                    ``(B) includes a similar evaluation of such projects 
                for the portion of the extension period that occurs 
                after September 30, 2000.
            ``(2) Final report.--The Secretary shall submit a final 
        report to such Committees on such demonstration projects not 
        later than July 1, 2002. Such report shall include the same 
        elements as the preliminary report required by paragraph (1), 
        but for the period after December 31, 1999.
            ``(3) Methodology for spending comparisons.--Any evaluation 
        of the impact of the demonstration projects on per beneficiary 
        spending included in such reports shall include a comparison 
        of--
                    ``(A) data for all individuals who--
                          ``(i) were enrolled in such demonstration 
                      projects as of the first day of the period under 
                      evaluation; and
                          ``(ii) were enrolled for a minimum of 6 months 
                      thereafter; with
                    ``(B) data for a matched sample of individuals who 
                are enrolled under part B of title XVIII of the Social 
                Security Act and are not enrolled in such a project, or 
                in a Medicare+Choice plan under part C of such title, a 
                plan offered by an eligible organization under section 
                1876 of such Act, or a health care prepayment plan under 
                section 1833(a)(1)(A) of such Act.''.

    (b) Effective Date.--The amendments made by subsection (a) shall be 
effective as if included in the enactment of section 532 of BBRA (113 
Stat. 1501A-388).

SEC. 633. EXTENSION OF MEDICARE MUNICIPAL HEALTH SERVICES DEMONSTRATION 
            PROJECTS.

    Section 9215(a) of the Consolidated Omnibus Budget Reconciliation 
Act of 1985 (42 U.S.C. 1395b-1 note), as amended by section 6135 of the 
Omnibus Budget Reconciliation Act of 1989, section 13557 of the Omnibus 
Budget Reconciliation Act of 1993, section 4017 of BBA, and section 534 
of BBRA (113 Stat. 1501A-390), is amended by striking ``December 31, 
2002'' and inserting ``December 31, 2004''.

SEC. 634. SERVICE AREA EXPANSION FOR MEDICARE COST CONTRACTS DURING 
            TRANSITION PERIOD.

    Section 1876(h)(5) (42 U.S.C. 1395mm(h)(5)) is amended--
            (1) by redesignating subparagraph (B) as subparagraph (C); 
        and
            (2) by inserting after subparagraph (A), the following new 
        subparagraph:

    ``(B) Subject to subparagraph (C), the Secretary shall approve an 
application for a modification to a reasonable cost contract

[[Page 114 STAT. 2763A-569]]

under this section in order to expand the service area of such contract 
if--
            ``(i) such application is submitted to the Secretary on or 
        before September 1, 2003; and
            ``(ii) the Secretary determines that the organization with 
        the contract continues to meet the requirements applicable to 
        such organizations and contracts under this section.''.

                           TITLE VII--MEDICAID

SEC. 701. DSH PAYMENTS.

    (a) Modifications to DSH Allotments.--
            (1) Increased allotments for fiscal years 2001 and 2002.--
                    (A) In general.--Section 1923(f ) (42 U.S.C. 1396r-
                4(f )) is amended--
                          (i) in paragraph (2), by striking ``The DSH 
                      allotment'' and inserting ``Subject to paragraph 
                      (4), the DSH allotment'';
                          (ii) by redesignating paragraph (4) as 
                      paragraph (6); and
                          (iii) by inserting after paragraph (3) the 
                      following new paragraph:
            ``(4) Special rule for fiscal years 2001 and 2002.--
                    ``(A) In general.--Notwithstanding paragraph (2), 
                the DSH allotment for any State for--
                          ``(i) fiscal year 2001, shall be the DSH 
                      allotment determined under paragraph (2) for 
                      fiscal year 2000 increased, subject to 
                      subparagraph (B) and paragraph (5), by the 
                      percentage change in the consumer price index for 
                      all urban consumers (all items; U.S. city average) 
                      for fiscal year 2000; and
                          ``(ii) fiscal year 2002, shall be the DSH 
                      allotment determined under clause (i) increased, 
                      subject to subparagraph (B) and paragraph (5), by 
                      the percentage change in the consumer price index 
                      for all urban consumers (all items; U.S. city 
                      average) for fiscal year 2001.
                    ``(B) Limitation.--Subparagraph (B) of paragraph (3) 
                shall apply to subparagraph (A) of this paragraph in the 
                same manner as that subparagraph (B) applies to 
                paragraph (3)(A).
                    ``(C) No application to allotments after fiscal year 
                2002.--The DSH allotment for any State for fiscal year 
                2003 or any succeeding fiscal year shall be determined 
                under paragraph (3) without regard to the DSH allotments 
                determined under subparagraph (A) of this paragraph.''.
            (2) Special rule for medicaid dsh allotment for extremely 
        low dsh states.--
                    (A) In general.--Section 1923(f ) (42 U.S.C. 1396r-
                4(f )), as amended by paragraph (1), is amended by 
                inserting after paragraph (4) the following new 
                paragraph:
            ``(5) Special rule for extremely low dsh states.--In the 
        case of a State in which the total expenditures under the State 
        plan (including Federal and State shares) for disproportionate 
        share hospital adjustments under this section

[[Page 114 STAT. 2763A-570]]

        for fiscal year 1999, as reported to the Administrator of the 
        Health Care Financing Administration as of August 31, 2000, is 
        greater than 0 but less than 1 percent of the State's total 
        amount of expenditures under the State plan for medical 
        assistance during the fiscal year, the DSH allotment for fiscal 
        year 2001 shall be increased to 1 percent of the State's total 
        amount of expenditures under such plan for such assistance 
        during such fiscal year. In subsequent fiscal years, such 
        increased allotment is subject to an increase for inflation as 
        provided in paragraph (3)(A).''.
                    (B) Conforming amendment.--Section 1923(f )(3)(A) 
                (42 U.S.C. 1396r-4(f )(3)(A)) is amended by inserting 
                ``and paragraph (5)'' after ``subparagraph (B)''.
            (3) Effective date.--The amendments made by paragraphs (1) 
        and (2) take effect on the date the final regulation required 
        under section 705(a) (relating to the application of an 
        aggregate upper payment limit test for State medicaid spending 
        for inpatient hospital services, outpatient hospital services, 
        nursing facility services, intermediate care facility services 
        for the mentally retarded, and clinic services provided by 
        government facilities that are not State-owned or operated 
        facilities) is published in the Federal Register.

    (b) Assuring Identification of Medicaid Managed Care Patients.--
            (1) In general.--Section 1932 (42 U.S.C. 1396u-2) is amended 
        by adding at the end the following new subsection:

    ``(g) Identification of Patients for Purposes of Making DSH 
Payments.--Each contract with a managed care entity under section 
1903(m) or under section 1905(t)(3) shall require the entity either--
            ``(1) to report to the State information necessary to 
        determine the hospital services provided under the contract (and 
        the identity of hospitals providing such services) for purposes 
        of applying sections 1886(d)(5)(F) and 1923; or
            ``(2) to include a sponsorship code in the identification 
        card issued to individuals covered under this title in order 
        that a hospital may identify a patient as being entitled to 
        benefits under this title.''.
            (2) Clarification of counting managed care medicaid 
        patients.--Section 1923 (42 U.S.C. 1396r-4) is amended--
                    (A) in subsection (a)(2)(D), by inserting after 
                ``the proportion of low-income and medicaid patients'' 
                the following: ``(including such patients who receive 
                benefits through a managed care entity)'';
                    (B) in subsection (b)(2), by inserting after ``a 
                State plan approved under this title in a period'' the 
                following: ``(regardless of whether such patients 
                receive medical assistance on a fee-for-service basis or 
                through a managed care entity)''; and
                    (C) in subsection (b)(3)(A)(i), by inserting after 
                ``under a State plan under this title'' the following: 
                ``(regardless of whether the services were furnished on 
                a fee-for-service basis or through a managed care 
                entity)''.
            (3) Effective dates.--
                    (A) The amendment made by paragraph (1) shall apply 
                to contracts as of January 1, 2001.

[[Page 114 STAT. 2763A-571]]

                    (B) The amendments made by paragraph (2) shall apply 
                to payments made on or after January 1, 2001.

    (c) Application of Medicaid DSH Transition Rule to Public Hospitals 
in All States.--
            (1) In general.--During the period described in paragraph 
        (3), with respect to a State, section 4721(e) of the Balanced 
        Budget Act of 1997 (Public Law 105-33; 111 Stat. 514), as 
        amended by section 607 of BBRA (113 Stat. 1501A-396), shall be 
        applied as though--
                    (A) ``September 30, 2002'' were substituted for 
                ``July 1, 1997'' each place it appears;
                    (B) ``hospitals owned or operated by a State (as 
                defined for purposes of title XIX of such Act), or by an 
                instrumentality or a unit of government within a State 
                (as so defined)'' were substituted for ``the State of 
                California'';
                    (C) paragraph (3) were redesignated as paragraph 
                (4);
                    (D) ``and'' were omitted from the end of paragraph 
                (2); and
                    (E) the following new paragraph were inserted after 
                paragraph (2):
            ``(3) `(as defined in subparagraph (B) but without regard to 
        clause (ii) of that subparagraph and subject to subsection (d))' 
        were substituted for `(as defined in subparagraph (B))' in 
        subparagraph (A) of such section; and''.
            (2) Special rule.--With respect to California, section 
        4721(e) of the Balanced Budget Act of 1997 (Public Law 105-33; 
        111 Stat. 514), as so amended, shall be applied without regard 
        to paragraph (1).
            (3) Period described.--The period described in this 
        paragraph is the period that begins, with respect to a State, on 
        the first day of the first State fiscal year that begins after 
        September 30, 2002, and ends on the last day of the succeeding 
        State fiscal year.
            (4) Application to waivers.--With respect to a State 
        operating under a waiver of the requirements of title XIX of the 
        Social Security Act (42 U.S.C. 1396 et seq.) under section 1115 
        of such Act (42 U.S.C. 1315), the amount by which any payment 
        adjustment made by the State under title XIX of such Act (42 
        U.S.C. 1396 et seq.), after the application of section 4721(e) 
        of the Balanced Budget Act of 1997 under paragraph (1) to such 
        State, exceeds the costs of furnishing hospital services 
        provided by hospitals described in such section shall be fully 
        reflected as an increase in the baseline expenditure limit for 
        such waiver.

    (d) Assistance for Certain Public Hospitals.--
            (1) In general.--Beginning with fiscal year 2002, 
        notwithstanding section 1923(f ) of the Social Security Act (42 
        U.S.C. 1396r-4(f )) and subject to paragraph (3), with respect 
        to a State, payment adjustments made under title XIX of the 
        Social Security Act (42 U.S.C. 1396 et seq.) to a hospital 
        described in paragraph (2) shall be made without regard to the 
        DSH allotment limitation for the State determined under section 
        1923(f ) of that Act (42 U.S.C. 1396r-4(f )).
            (2) Hospital described.--A hospital is described in this 
        paragraph if the hospital--
                    (A) is owned or operated by a State (as defined for 
                purposes of title XIX of the Social Security Act), or by

[[Page 114 STAT. 2763A-572]]

                an instrumentality or a unit of government within a 
                State (as so defined);
                    (B) as of October 1, 2000--
                          (i) is in existence and operating as a 
                      hospital described in subparagraph (A); and
                          (ii) is not receiving disproportionate share 
                      hospital payments from the State in which it is 
                      located under title XIX of such Act; and
                    (C) has a low-income utilization rate (as defined in 
                section 1923(b)(3) of the Social Security Act (42 U.S.C. 
                1396r-4(b)(3))) in excess of 65 percent.
            (3) Limitation on expenditures.--
                    (A) In general.--With respect to any fiscal year, 
                the aggregate amount of Federal financial participation 
                that may be provided for payment adjustments described 
                in paragraph (1) for that fiscal year for all States may 
                not exceed the amount described in subparagraph (B) for 
                the fiscal year.
                    (B) Amount described.--The amount described in this 
                subparagraph for a fiscal year is as follows:
                          (i) For fiscal year 2002, $15,000,000.
                          (ii) For fiscal year 2003, $176,000,000.
                          (iii) For fiscal year 2004, $269,000,000.
                          (iv) For fiscal year 2005, $330,000,000.
                          (v) For fiscal year 2006 and each fiscal year 
                      thereafter, $375,000,000.

    (e) DSH Payment Accountability Standards.--Not later than September 
30, 2002, the Secretary of Health and Human Services shall implement 
accountability standards to ensure that Federal funds provided with 
respect to disproportionate share hospital adjustments made under 
section 1923 of the Social Security Act (42 U.S.C. 1396r-4) are used to 
reimburse States and hospitals eligible for such payment adjustments for 
providing uncompensated health care to low-income patients and are 
otherwise made in accordance with the requirements of section 1923 of 
that Act.

SEC. 702. NEW PROSPECTIVE PAYMENT SYSTEM FOR FEDERALLY-QUALIFIED HEALTH 
            CENTERS AND RURAL HEALTH CLINICS.

    (a) In General.--Section 1902(a) (42 U.S.C. 1396a(a)) is amended--
            (1) in paragraph (13)--
                    (A) in subparagraph (A), by adding ``and'' at the 
                end;
                    (B) in subparagraph (B), by striking ``and'' at the 
                end; and
                    (C) by striking subparagraph (C); and
            (2) by inserting after paragraph (14) the following new 
        paragraph:
            ``(15) provide for payment for services described in clause 
        (B) or (C) of section 1905(a)(2) under the plan in accordance 
        with subsection (aa);''.

    (b) New Prospective Payment System.--Section 1902 (42 U.S.C. 1396a) 
is amended by adding at the end the following:
    ``(aa) Payment for Services Provided by Federally-Qualified Health 
Centers and Rural Health Clinics.--
            ``(1) In general.--Beginning with fiscal year 2001 with 
        respect to services furnished on or after January 1, 2001, and

[[Page 114 STAT. 2763A-573]]

        each succeeding fiscal year, the State plan shall provide for 
        payment for services described in section 1905(a)(2)(C) 
        furnished by a Federally-qualified health center and services 
        described in section 1905(a)(2)(B) furnished by a rural health 
        clinic in accordance with the provisions of this subsection.
            ``(2) Fiscal year 2001.--Subject to paragraph (4), for 
        services furnished on and after January 1, 2001, during fiscal 
        year 2001, the State plan shall provide for payment for such 
        services in an amount (calculated on a per visit basis) that is 
        equal to 100 percent of the average of the costs of the center 
        or clinic of furnishing such services during fiscal years 1999 
        and 2000 which are reasonable and related to the cost of 
        furnishing such services, or based on such other tests of 
        reasonableness as the Secretary prescribes in regulations under 
        section 1833(a)(3), or, in the case of services to which such 
        regulations do not apply, the same methodology used under 
        section 1833(a)(3), adjusted to take into account any increase 
        or decrease in the scope of such services furnished by the 
        center or clinic during fiscal year 2001.
            ``(3) Fiscal year 2002 and succeeding fiscal years.--Subject 
        to paragraph (4), for services furnished during fiscal year 2002 
        or a succeeding fiscal year, the State plan shall provide for 
        payment for such services in an amount (calculated on a per 
        visit basis) that is equal to the amount calculated for such 
        services under this subsection for the preceding fiscal year--
                    ``(A) increased by the percentage increase in the 
                MEI (as defined in section 1842(i)(3)) applicable to 
                primary care services (as defined in section 1842(i)(4)) 
                for that fiscal year; and
                    ``(B) adjusted to take into account any increase or 
                decrease in the scope of such services furnished by the 
                center or clinic during that fiscal year.
            ``(4) Establishment of initial year payment amount for new 
        centers or clinics.--In any case in which an entity first 
        qualifies as a Federally-qualified health center or rural health 
        clinic after fiscal year 2000, the State plan shall provide for 
        payment for services described in section 1905(a)(2)(C) 
        furnished by the center or services described in section 
        1905(a)(2)(B) furnished by the clinic in the first fiscal year 
        in which the center or clinic so qualifies in an amount 
        (calculated on a per visit basis) that is equal to 100 percent 
        of the costs of furnishing such services during such fiscal year 
        based on the rates established under this subsection for the 
        fiscal year for other such centers or clinics located in the 
        same or adjacent area with a similar case load or, in the 
        absence of such a center or clinic, in accordance with the 
        regulations and methodology referred to in paragraph (2) or 
        based on such other tests of reasonableness as the Secretary may 
        specify. For each fiscal year following the fiscal year in which 
        the entity first qualifies as a Federally-qualified health 
        center or rural health clinic, the State plan shall provide for 
        the payment amount to be calculated in accordance with paragraph 
        (3).
            ``(5) Administration in the case of managed care.--
                    ``(A) In general.--In the case of services furnished 
                by a Federally-qualified health center or rural health 
                clinic

[[Page 114 STAT. 2763A-574]]

                pursuant to a contract between the center or clinic and 
                a managed care entity (as defined in section 
                1932(a)(1)(B)), the State plan shall provide for payment 
                to the center or clinic by the State of a supplemental 
                payment equal to the amount (if any) by which the amount 
                determined under paragraphs (2), (3), and (4) of this 
                subsection exceeds the amount of the payments provided 
                under the contract.
                    ``(B) Payment schedule.--The supplemental payment 
                required under subparagraph (A) shall be made pursuant 
                to a payment schedule agreed to by the State and the 
                Federally-qualified health center or rural health 
                clinic, but in no case less frequently than every 4 
                months.
            ``(6) Alternative payment methodologies.--Notwithstanding 
        any other provision of this section, the State plan may provide 
        for payment in any fiscal year to a Federally-qualified health 
        center for services described in section 1905(a)(2)(C) or to a 
        rural health clinic for services described in section 
        1905(a)(2)(B) in an amount which is determined under an 
        alternative payment methodology that--
                    ``(A) is agreed to by the State and the center or 
                clinic; and
                    ``(B) results in payment to the center or clinic of 
                an amount which is at least equal to the amount 
                otherwise required to be paid to the center or clinic 
                under this section.''.

    (c) Conforming Amendments.--
            (1) Section 4712 of the BBA (Public Law 105-33; 111 Stat. 
        508) is amended by striking subsection (c).
            (2) Section 1915(b) (42 U.S.C. 1396n(b)) is amended by 
        striking ``1902(a)(13)(C)'' and inserting ``1902(a)(15), 
        1902(aa),''.

    (d) GAO Study of Future Rebasing.--The Comptroller General of the 
United States shall provide for a study on the need for, and how to, 
rebase or refine costs for making payment under the medicaid program for 
services provided by Federally-qualified health centers and rural health 
clinics (as provided under the amendments made by this section). The 
Comptroller General shall provide for submittal of a report on such 
study to Congress by not later than 4 years after the date of the 
enactment of this Act.
    (e) Effective Date.--The amendments made by this section take effect 
on January 1, 2001, and shall apply to services furnished on or after 
such date.

SEC. 703. STREAMLINED APPROVAL OF CONTINUED STATE-WIDE SECTION 1115 
            MEDICAID WAIVERS.

    (a) In General.--Section 1115 (42 U.S.C. 1315) is amended by adding 
at the end the following new subsection:
    ``(f ) An application by the chief executive officer of a State for 
an extension of a waiver project the State is operating under an 
extension under subsection (e) (in this subsection referred to as the 
`waiver project') shall be submitted and approved or disapproved in 
accordance with the following:
            ``(1) The application for an extension of the waiver project 
        shall be submitted to the Secretary at least 120 days prior to 
        the expiration of the current period of the waiver project.
            ``(2) Not later than 45 days after the date such application 
        is received by the Secretary, the Secretary shall notify the

[[Page 114 STAT. 2763A-575]]

        State if the Secretary intends to review the terms and 
        conditions of the waiver project. A failure to provide such 
        notification shall be deemed to be an approval of the 
        application.
            ``(3) Not later than 45 days after the date a notification 
        is made in accordance with paragraph (2), the Secretary shall 
        inform the State of proposed changes in the terms and conditions 
        of the waiver project. A failure to provide such information 
        shall be deemed to be an approval of the application.
            ``(4) During the 30-day period that begins on the date 
        information described in paragraph (3) is provided to a State, 
        the Secretary shall negotiate revised terms and conditions of 
        the waiver project with the State.
            ``(5)(A) Not later than 120 days after the date an 
        application for an extension of the waiver project is submitted 
        to the Secretary (or such later date agreed to by the chief 
        executive officer of the State), the Secretary shall--
                    ``(i) approve the application subject to such 
                modifications in the terms and conditions--
                          ``(I) as have been agreed to by the Secretary 
                      and the State; or
                          ``(II) in the absence of such agreement, as 
                      are determined by the Secretary to be reasonable, 
                      consistent with the overall objectives of the 
                      waiver project, and not in violation of applicable 
                      law; or
                    ``(ii) disapprove the application.
            ``(B) A failure by the Secretary to approve or disapprove an 
        application submitted under this subsection in accordance with 
        the requirements of subparagraph (A) shall be deemed to be an 
        approval of the application subject to such modifications in the 
        terms and conditions as have been agreed to (if any) by the 
        Secretary and the State.
            ``(6) An approval of an application for an extension of a 
        waiver project under this subsection shall be for a period not 
        to exceed 3 years.
            ``(7) An extension of a waiver project under this subsection 
        shall be subject to the final reporting and evaluation 
        requirements of paragraphs (4) and (5) of subsection (e) (taking 
        into account the extension under this subsection with respect to 
        any timing requirements imposed under those paragraphs).''.

    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to requests for extensions of demonstration projects pending or 
submitted on or after the date of the enactment of this Act.

SEC. 704. MEDICAID COUNTY-ORGANIZED HEALTH SYSTEMS.

    (a) In General.--Section 9517(c)(3)(C) of the Comprehensive Omnibus 
Budget Reconciliation Act of 1985 is amended by striking ``10 percent'' 
and inserting ``14 percent''.
    (b) Effective Date.--The amendment made by subsection (a) takes 
effect on the date of the enactment of this Act.

SEC. 705. DEADLINE FOR ISSUANCE OF FINAL REGULATION RELATING TO MEDICAID 
            UPPER PAYMENT LIMITS.

    (a) In General.--Not later than December 31, 2000, the Secretary of 
Health and Human Services (in this section referred to as the 
``Secretary''), notwithstanding any requirement of the Administrative 
Procedures Act under chapter 5 of title 5, United States Code, or any 
other provision of law, shall issue under sections

[[Page 114 STAT. 2763A-576]]

447.272, 447.304, and 447.321 of title 42, Code of Federal Regulations 
(and any other section of part 447 of title 42, Code of Federal 
Regulations that the Secretary determines is appropriate), a final 
regulation based on the proposed rule announced on October 5, 2000, 
that--
            (1) modifies the upper payment limit test applied to State 
        medicaid spending for inpatient hospital services, outpatient 
        hospital services, nursing facility services, intermediate care 
        facility services for the mentally retarded, and clinic services 
        by applying an aggregate upper payment limit to payments made to 
        government facilities that are not State-owned or operated 
        facilities; and
            (2) provides for a transition period in accordance with 
        subsection (b).

    (b) Transition Period.--
            (1) In general.--The final regulation required under 
        subsection (a) shall provide that, with respect to a State 
        described in paragraph (3), the State shall be considered to be 
        in compliance with the final regulation required under 
        subsection (a) so long as, for each State fiscal year during the 
        period described in paragraph (4), the State reduces payments 
        under a State medicaid plan payment provision or methodology 
        described in paragraph (3) (including a payment provision or 
        methodology described in that paragraph that was approved under 
        a waiver of such plan), or reduces the actual dollar payment 
        levels described in paragraph (3)(B), so that the amount of the 
        payments that would otherwise have been made under such 
        provision, methodology, or payment levels by the State for any 
        State fiscal year during such period is reduced by 15 percent in 
        the first such State fiscal year, and by an additional 15 
        percent in each of the next 5 State fiscal years.
            (2) Requirement.--Notwithstanding paragraph (1), the final 
        regulation required under subsection (a) shall provide that, for 
        any period (or portion of a period) that occurs on or after 
        October 1, 2008, medicaid payments made by a State described in 
        paragraph (3) shall comply with such final regulation.
            (3) State described.--A State described in this paragraph is 
        a State with a State medicaid plan payment provision or 
        methodology (including a payment provision or methodology 
        approved under a waiver of such plan) which--
                    (A) was approved, deemed to have been approved, or 
                was in effect on or before October 1, 1992 (including 
                any subsequent amendments or successor provisions or 
                methodologies and whether or not a State plan amendment 
                was made to carry out such provision or methodology 
                after such date) or under which claims for Federal 
                financial participation were filed and paid on or before 
                such date; and
                    (B) provides for payments that are in excess of the 
                upper payment limit test established under the final 
                regulation required under subsection (a) (or which would 
                be noncompliant with such final regulation if the actual 
                dollar payment levels made under the payment provision 
                or methodology in the State fiscal year which begins 
                during 1999 were continued).

[[Page 114 STAT. 2763A-577]]

            (4) Period described.--The period described in this 
        paragraph is the period that begins on the first State fiscal 
        year that begins after September 30, 2002, and ends on September 
        30, 2008.

SEC. 706. ALASKA FMAP.

    Notwithstanding the first sentence of section 1905(b) of the Social 
Security Act (42 U.S.C. 1396d(b)), only with respect to each of fiscal 
years 2001 through 2005, for purposes of titles XIX and XXI of the 
Social Security Act, the State percentage used to determine the Federal 
medical assistance percentage for Alaska shall be that percentage which 
bears the same ratio to 45 percent as the square of the adjusted per 
capita income of Alaska (determined by dividing the State's 3-year 
average per capita income by 1.05) bears to the square of the per capita 
income of the 50 States.

SEC. 707. ONE-YEAR EXTENSION OF WELFARE-TO-WORK TRANSITION.

    (a) In General.--Section 1925(f ) (42 U.S.C. 1396r-6(f )) is amended 
by striking ``2001'' and inserting ``2002''.
    (b) Conforming Amendment.--Section 1902(e)(1)(B) (42 U.S.C. 
1396a(e)(1)(B)) is amended by striking ``2001'' and inserting ``2002''.

SEC. 708. ADDITIONAL ENTITIES QUALIFIED TO DETERMINE MEDICAID 
            PRESUMPTIVE ELIGIBILITY FOR LOW-INCOME CHILDREN.

    (a) In General.--Section 1920A(b)(3)(A)(i) (42 U.S.C. 1396r-
1a(b)(3)(A)(i)) is amended--
            (1) by striking ``or (II)'' and inserting ``, (II)''; and
            (2) by inserting ``eligibility of a child for medical 
        assistance under the State plan under this title, or eligibility 
        of a child for child health assistance under the program funded 
        under title XXI, (III) is an elementary school or secondary 
        school, as such terms are defined in section 14101 of the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 8801), 
        an elementary or secondary school operated or supported by the 
        Bureau of Indian Affairs, a State or tribal child support 
        enforcement agency, an organization that is providing emergency 
        food and shelter under a grant under the Stewart B. McKinney 
        Homeless Assistance Act, or a State or tribal office or entity 
        involved in enrollment in the program under this title, under 
        part A of title IV, under title XXI, or that determines 
        eligibility for any assistance or benefits provided under any 
        program of public or assisted housing that receives Federal 
        funds, including the program under section 8 or any other 
        section of the United States Housing Act of 1937 (42 U.S.C. 1437 
        et seq.) or under the Native American Housing Assistance and 
        Self-Determination Act of 1996 (25 U.S.C. 4101 et seq.), or (IV) 
        any other entity the State so deems, as approved by the 
        Secretary'' before the semicolon.

    (b) Technical Amendments.--Section 1920A (42 U.S.C. 1396r-1a) is 
amended--
            (1) in subsection (b)(3)(A)(i), by striking ``42 U.S.C. 
        9821'' and inserting ``42 U.S.C. 9831'';
            (2) in subsection (b)(3)(A)(ii), by striking ``paragraph 
        (1)(A)'' and inserting ``paragraph (2)''; and
            (3) in subsection (c)(2), in the matter preceding 
        subparagraph (A), by striking ``subsection (b)(1)(A)'' and 
        inserting ``subsection (b)(2)''.

[[Page 114 STAT. 2763A-578]]

SEC. 709. DEVELOPMENT OF UNIFORM QMB/SLMB APPLICATION FORM.

    (a) In General.--Section 1905(p) (42 U.S.C. 1396d(p)) is amended by 
adding at the end the following new paragraph:
    ``(5)(A) The Secretary shall develop and distribute to States a 
simplified application form for use by individuals (including both 
qualified medicare beneficiaries and specified low-income medicare 
beneficiaries) in applying for medical assistance for medicare cost-
sharing under this title in the States which elect to use such form. 
Such form shall be easily readable by applicants and uniform nationally.
    ``(B) In developing such form, the Secretary shall consult with 
beneficiary groups and the States.''.
    (b) Effective Date.--The amendment made by subsection (a) shall take 
effect 1 year after the date of the enactment of this Act, regardless of 
whether regulations have been promulgated to carry out such amendment by 
such date. The Secretary of Health and Human Services shall develop the 
uniform application form under such amendment by not later than 9 months 
after the date of the enactment of this Act.

SEC. 710. TECHNICAL CORRECTIONS.

    (a) In General.--Section 1903(f )(4) (42 U.S.C. 1396b(f )(4)) is 
amended--
            (1) by inserting ``1902(a)(10)(A)(ii)(XVII),'' after 
        ``1902(a)(10)(A)(ii)(XVI),''; and
            (2) by inserting ``1902(a)(10)(A)(ii)(XVIII),'' after 
        ``1902(a)(10)(A)(ii)(XVII),''.

    (b) Effective Dates.--(1) The amendment made by subsection (a)(1) 
shall be effective as if included in the enactment of section 121 of the 
Foster Care Independence Act of 1999 (Public Law 106-169).
    (2) The amendment made by subsection (a)(2) shall be effective as if 
included in the enactment of the Breast and Cervical Cancer Prevention 
and Treatment Act of 2000 (Public Law 106-354).

          TITLE VIII--STATE CHILDREN'S HEALTH INSURANCE PROGRAM

SEC. 801. SPECIAL RULE FOR REDISTRIBUTION AND AVAILABILITY OF UNUSED 
            FISCAL YEAR 1998 AND 1999 SCHIP ALLOTMENTS.

    (a) Change in Rules for Redistribution and Retention of Unused SCHIP 
Allotments for Fiscal Years 1998 and 1999.--Section 2104 (42 U.S.C. 
1397dd) is amended by adding at the end the following new subsection:
    ``(g) Rule for Redistribution and Extended Availability of Fiscal 
Years 1998 and 1999  Allotments.--
            ``(1) Amount redistributed.--
                    ``(A) In general.--In the case of a State that 
                expends all of its allotment under subsection (b) or (c) 
                for fiscal year 1998 by the end of fiscal year 2000, or 
                for fiscal year 1999 by the end of fiscal year 2001, the 
                Secretary shall redistribute to the State under 
                subsection (f ) (from the fiscal year 1998 or 1999 
                allotments of other States,

[[Page 114 STAT. 2763A-579]]

                respectively, as determined by the application of 
                paragraphs (2) and (3) with respect to the respective 
                fiscal year) the following amount:
                          ``(i) State.--In the case of one of the 50 
                      States or the District of Columbia, with respect 
                      to--
                                    ``(I) the fiscal year 1998 
                                allotment, the amount by which the 
                                State's expenditures under this title in 
                                fiscal years 1998, 1999, and 2000 exceed 
                                the State's allotment for fiscal year 
                                1998 under subsection (b); or
                                    ``(II) the fiscal year 1999 
                                allotment, the amount by which the 
                                State's expenditures under this title in 
                                fiscal years 1999, 2000, and 2001 exceed 
                                the State's allotment for fiscal year 
                                1999 under subsection (b).
                          ``(ii) Territory.--In the case of a 
                      commonwealth or territory described in subsection 
                      (c)(3), an amount that bears the same ratio to 
                      1.05 percent of the total amount described in 
                      paragraph (2)(B)(i)(I) as the ratio of the 
                      commonwealth's or territory's fiscal year 1998 or 
                      1999 allotment under subsection (c) (as the case 
                      may be) bears to the total of all such allotments 
                      for such fiscal year under such subsection.
                    ``(B) Expenditure rules.--An amount redistributed to 
                a State under this paragraph with respect to fiscal year 
                1998 or 1999--
                          ``(i) shall not be included in the 
                      determination of the State's allotment for any 
                      fiscal year under this section;
                          ``(ii) notwithstanding subsection (e), shall 
                      remain available for expenditure by the State 
                      through the end of fiscal year 2002; and
                          ``(iii) shall be counted as being expended 
                      with respect to a fiscal year allotment in 
                      accordance with applicable regulations of the 
                      Secretary.
            ``(2) Extension of availability of portion of unexpended 
        fiscal years 1998 and 1999 allotments.--
                    ``(A) In general.--Notwithstanding subsection (e):
                          ``(i) Fiscal year 1998 allotment.--Of the 
                      amounts allotted to a State pursuant to this 
                      section for fiscal year 1998 that were not 
                      expended by the State by the end of fiscal year 
                      2000, the amount specified in subparagraph (B) for 
                      fiscal year 1998 for such State shall remain 
                      available for expenditure by the State through the 
                      end of fiscal year 2002.
                          ``(ii) Fiscal year 1999 allotment.--Of the 
                      amounts allotted to a State pursuant to this 
                      subsection for fiscal year 1999 that were not 
                      expended by the State by the end of fiscal year 
                      2001, the amount specified in subparagraph (B) for 
                      fiscal year 1999 for such State shall remain 
                      available for expenditure by the State through the 
                      end of fiscal year 2002.
                    ``(B) Amount remaining available for expenditure.--
                The amount specified in this subparagraph for a State 
                for a fiscal year is equal to--
                          ``(i) the amount by which (I) the total amount 
                      available for redistribution under subsection (f ) 
                      from

[[Page 114 STAT. 2763A-580]]

                      the allotments for that fiscal year, exceeds (II) 
                      the total amounts redistributed under paragraph 
                      (1) for that fiscal year; multiplied by
                          ``(ii) the ratio of the amount of such State's 
                      unexpended allotment for that fiscal year to the 
                      total amount described in clause (i)(I) for that 
                      fiscal year.
                    ``(C) Use of up to 10 percent of retained 1998 
                allotments for outreach activities.--Notwithstanding 
                section 2105(c)(2)(A), with respect to any State 
                described in subparagraph (A)(i), the State may use up 
                to 10 percent of the amount specified in subparagraph 
                (B) for fiscal year 1998 for expenditures for outreach 
                activities approved by the Secretary.
            ``(3) Determination of amounts.--For purposes of calculating 
        the amounts described in paragraphs (1) and (2) relating to the 
        allotment for fiscal year 1998 or fiscal year 1999, the 
        Secretary shall use the amounts reported by the States not later 
        than December 15, 2000, or November 30, 2001, respectively, on 
        HCFA Form 64 or HCFA Form 21, as approved by the Secretary.''.

    (b) Effective Date.--The amendments made by this section shall take 
effect as if included in the enactment of section 4901 of BBA (111 Stat. 
552).

SEC. 802. AUTHORITY TO PAY MEDICAID EXPANSION SCHIP COSTS FROM TITLE XXI 
            APPROPRIATION.

    (a) Authority To Pay Medicaid Expansion SCHIP Costs From Title XXI 
Appropriation.--Section 2105(a) (42 U.S.C. 1397ee(a)) is amended--
            (1) by redesignating subparagraphs (A) through (D) of 
        paragraph (2) as clauses (i) through (iv), respectively, and 
        indenting appropriately;
            (2) by redesignating paragraph (1) as subparagraph (C), and 
        indenting appropriately;
            (3) by redesignating paragraph (2) as subparagraph (D), and 
        indenting appropriately;
            (4) by striking ``(a) In General.--'' and the remainder of 
        the text that precedes subparagraph (C), as so redesignated, and 
        inserting the following:

    ``(a) Payments.--
            ``(1) In general.--Subject to the succeeding provisions of 
        this section, the Secretary shall pay to each State with a plan 
        approved under this title, from its allotment under section 
        2104, an amount for each quarter equal to the enhanced FMAP (or, 
        in the case of expenditures described in subparagraph (B), the 
        Federal medical assistance percentage (as defined in the first 
        sentence of section 1905(b))) of expenditures in the quarter--
                    ``(A) for child health assistance under the plan for 
                targeted low-income children in the form of providing 
                medical assistance for which payment is made on the 
                basis of an enhanced FMAP under the fourth sentence of 
                section 1905(b);
                    ``(B) for the provision of medical assistance on 
                behalf of a child during a presumptive eligibility 
                period under section 1920A;''; and

[[Page 114 STAT. 2763A-581]]

            (5) by adding after subparagraph (D), as so redesignated, 
        the following new paragraph:
            ``(2) Order of payments.--Payments under paragraph (1) from 
        a State's allotment shall be made in the following order:
                    ``(A) First, for expenditures for items described in 
                paragraph (1)(A).
                    ``(B) Second, for expenditures for items described 
                in paragraph (1)(B).
                    ``(C) Third, for expenditures for items described in 
                paragraph (1)(C).
                    ``(D) Fourth, for expenditures for items described 
                in paragraph (1)(D).''.

    (b) Elimination of Requirement To Reduce Title XXI Allotment by 
Medicaid Expansion SCHIP Costs.--Section 2104 (42 U.S.C. 1397dd) is 
amended by striking subsection (d).
    (c) Authority To Transfer Title XXI Appropriations to Title XIX 
Appropriation Account as Reimbursement for Medicaid Expenditures for 
Medicaid Expansion SCHIP Services.--Notwithstanding any other provision 
of law, all amounts appropriated under title XXI and allotted to a State 
pursuant to subsection (b) or (c) of section 2104 of the Social Security 
Act (42 U.S.C. 1397dd) for fiscal years 1998 through 2000 (including any 
amounts that, but for this provision, would be considered to have 
expired) and not expended in providing child health assistance or 
related services for which payment may be made pursuant to subparagraph 
(C) or (D) of section 2105(a)(1) of such Act (42 U.S.C. 1397ee(a)(1)) 
(as amended by subsection (a)), shall be available to reimburse the 
Grants to States for Medicaid account in an amount equal to the total 
payments made to such State under section 1903(a) of such Act (42 U.S.C. 
1396b(a)) for expenditures in such years for medical assistance 
described in subparagraphs (A) and (B) of section 2105(a)(1) of such Act 
(42 U.S.C. 1397ee(a)(1)) (as so amended).
    (d) Conforming Amendments.--
            (1) Section 1905(b) (42 U.S.C. 1396d(b)) is amended in the 
        fourth sentence by striking ``the State's allotment under 
        section 2104 (not taking into account reductions under section 
        2104(d)(2)) for the fiscal year reduced by the amount of any 
        payments made under section 2105 to the State from such 
        allotment for such fiscal year'' and inserting ``the State's 
        available allotment under section 2104''.
            (2) Section 1905(u)(1)(B) (42 U.S.C. 1396d(u)(1)(B)) is 
        amended by striking ``and section 2104(d)''.
            (3) Section 2104 (42 U.S.C. 1397dd), as amended by 
        subsection (b), is further amended--
                    (A) in subsection (b)(1), by striking ``and 
                subsection (d)''; and
                    (B) in subsection (c)(1), by striking ``subject to 
                subsection (d),''.
            (4) Section 2105(c) (42 U.S.C. 1397ee(c)) is amended--
                    (A) in paragraph (2)(A), by striking all that 
                follows ``Except as provided in this paragraph,'' and 
                inserting ``the amount of payment that may be made under 
                subsection (a) for a fiscal year for expenditures for 
                items described in paragraph (1)(D) of such subsection 
                shall not exceed 10 percent of the total amount of 
                expenditures for which

[[Page 114 STAT. 2763A-582]]

                payment is made under subparagraphs (A), (C), and (D) of 
                paragraph (1) of such subsection.'';
                    (B) in paragraph (2)(B), by striking ``described in 
                subsection (a)(2)'' and inserting ``described in 
                subsection (a)(1)(D)''; and
                    (C) in paragraph (6)(B), by striking ``Except as 
                otherwise provided by law,'' and inserting ``Except as 
                provided in subparagraph (A) or (B) of subsection (a)(1) 
                or any other provision of law,''.
            (5) Section 2110(a) (42 U.S.C. 1397jj(a)) is amended by 
        striking ``section 2105(a)(2)(A)'' and inserting ``section 
        2105(a)(1)(D)(i)''.

    (e) Technical Amendment.--Section 2105(d)(2)(B)(ii) (42 U.S.C. 
1397ee(d)(2)(B)(ii)) is amended by striking ``enhanced FMAP under 
section 1905(u)'' and inserting ``enhanced FMAP under the fourth 
sentence of section 1905(b)''.
    (f ) Effective Date.--The amendments made by this section shall be 
effective as if included in the enactment of section 4901 of the BBA 
(111 Stat. 552).

SEC. 803. APPLICATION OF MEDICAID CHILD PRESUMPTIVE ELIGIBILITY 
            PROVISIONS.

    Section 2107(e)(1) (42 U.S.C. 1397gg(e)(1)) is amended by adding at 
the end the following new subparagraph:
                    ``(D) Section 1920A (relating to presumptive 
                eligibility for children).''.

                       TITLE IX--OTHER PROVISIONS

                        Subtitle A--PACE Program

SEC. 901. EXTENSION OF TRANSITION FOR CURRENT WAIVERS.

    Section 4803(d)(2) of BBA is amended--
            (1) in subparagraph (A), by striking ``24 months'' and 
        inserting ``36 months'';
            (2) in subparagraph (A), by striking ``the initial effective 
        date of regulations described in subsection (a)'' and inserting 
        ``July 1, 2000''; and
            (3) in subparagraph (B), by striking ``3 years'' and 
        inserting ``4 years''.

SEC. 902. CONTINUING OF CERTAIN OPERATING ARRANGEMENTS PERMITTED.

    (a) In General.--Section 1894(f )(2) (42 U.S.C. 1395eee(f )(2)) is 
amended by adding at the end the following new subparagraph:
                    ``(C) Continuation of modifications or waivers of 
                operational requirements under demonstration status.--If 
                a PACE program operating under demonstration authority 
                has contractual or other operating arrangements which 
                are not otherwise recognized in regulation and which 
                were in effect on July 1, 2000, the Secretary (in close 
                consultation with, and with the concurrence of, the 
                State administering agency) shall permit any such 
                program to continue such arrangements so long as such 
                arrangements are found by the Secretary and the State to 
                be reasonably consistent with the objectives of the PACE 
                program.''.

[[Page 114 STAT. 2763A-583]]

    (b) Conforming Amendment.--Section 1934(f )(2) (42 U.S.C. 1396u-4(f 
)(2)) is amended by adding at the end the following new subparagraph:
                    ``(C) Continuation of modifications or waivers of 
                operational requirements under demonstration status.--If 
                a PACE program operating under demonstration authority 
                has contractual or other operating arrangements which 
                are not otherwise recognized in regulation and which 
                were in effect on July 1 2000, the Secretary (in close 
                consultation with, and with the concurrence of, the 
                State administering agency) shall permit any such 
                program to continue such arrangements so long as such 
                arrangements are found by the Secretary and the State to 
                be reasonably consistent with the objectives of the PACE 
                program.''.

    (c) Effective Date.--The amendments made by this section shall be 
effective as included in the enactment of BBA.

SEC. 903. FLEXIBILITY IN EXERCISING WAIVER AUTHORITY.

    In applying sections 1894(f )(2)(B) and 1934(f )(2)(B) of the Social 
Security Act (42 U.S.C. 1395eee(f )(2)(B), 1396u-4(f )(2)(B)), the 
Secretary of Health and Human Services--
            (1) shall approve or deny a request for a modification or a 
        waiver of provisions of the PACE protocol not later than 90 days 
        after the date the Secretary receives the request; and
            (2) may exercise authority to modify or waive such 
        provisions in a manner that responds promptly to the needs of 
        PACE programs relating to areas of employment and the use of 
        community-based primary care physicians.

   Subtitle B--Outreach to Eligible Low-Income Medicare Beneficiaries

SEC. 911. OUTREACH ON AVAILABILITY OF MEDICARE COST-SHARING ASSISTANCE 
            TO ELIGIBLE LOW-INCOME MEDICARE BENEFICIARIES.

    (a) Outreach.--
            (1) In general.--Title XI (42 U.S.C. 1301 et seq.) is 
        amended by inserting after section 1143 the following new 
        section:

``outreach efforts to increase awareness of the availability of medicare 
                              cost-sharing

    ``Sec. 1144. (a) Outreach.--
            ``(1) In general.--The Commissioner of Social Security (in 
        this section referred to as the `Commissioner') shall conduct 
        outreach efforts to--
                    ``(A) identify individuals entitled to benefits 
                under the medicare program under title XVIII who may be 
                eligible for medical assistance for payment of the cost 
                of medicare cost-sharing under the medicaid program 
                pursuant to sections 1902(a)(10)(E) and 1933; and
                    ``(B) notify such individuals of the availability of 
                such medical assistance under such sections.

[[Page 114 STAT. 2763A-584]]

            ``(2) Content of notice.--Any notice furnished under 
        paragraph (1) shall state that eligibility for medicare cost-
        sharing assistance under such sections is conditioned upon--
                    ``(A) the individual providing to the State 
                information about income and resources (in the case of 
                an individual residing in a State that imposes an assets 
                test for such eligibility); and
                    ``(B) meeting the applicable eligibility criteria.

    ``(b) Coordination With States.--
            ``(1) In general.--In conducting the outreach efforts under 
        this section, the Commissioner shall--
                    ``(A) furnish the agency of each State responsible 
                for the administration of the medicaid program and any 
                other appropriate State agency with information 
                consisting of the name and address of individuals 
                residing in the State that the Commissioner determines 
                may be eligible for medical assistance for payment of 
                the cost of medicare cost-sharing under the medicaid 
                program pursuant to sections 1902(a)(10)(E) and 1933; 
                and
                    ``(B) update any such information not less 
                frequently than once per year.
            ``(2) Information in periodic updates.--The periodic updates 
        described in paragraph (1)(B) shall include information on 
        individuals who are or may be eligible for the medical 
        assistance described in paragraph (1)(A) because such 
        individuals have experienced reductions in benefits under title 
        II.''.
            (2) Amendment to title xix.--Section 1905(p) (42 U.S.C. 
        1396d(p)), as amended by section 710(a), is amended by adding at 
        the end the following new paragraph:

    ``(6) For provisions relating to outreach efforts to increase 
awareness of the availability of medicare cost-sharing, see section 
1144.''.
    (b) GAO Report.--The Comptroller General of the United States shall 
conduct a study of the impact of section 1144 of the Social Security Act 
(as added by subsection (a)(1)) on the enrollment of individuals for 
medicare cost-sharing under the medicaid program. Not later than 18 
months after the date that the Commissioner of Social Security first 
conducts outreach under section 1144 of such Act, the Comptroller 
General shall submit to Congress a report on such study. The report 
shall include such recommendations for legislative changes as the 
Comptroller General deems appropriate.
    (c) Effective Date.--The amendments made by subsection (a) shall 
take effect one year after the date of the enactment of this Act.

            Subtitle C--Maternal and Child Health Block Grant

SEC. 921. INCREASE IN AUTHORIZATION OF APPROPRIATIONS FOR THE MATERNAL 
            AND CHILD HEALTH SERVICES BLOCK GRANT.

    (a) In General.--Section 501(a) (42 U.S.C. 701(a)) is amended in the 
matter preceding paragraph (1) by striking ``$705,000,000 for fiscal 
year 1994'' and inserting ``$850,000,000 for fiscal year 2001''.

[[Page 114 STAT. 2763A-585]]

    (b) Effective Date.--The amendment made by subsection (a) takes 
effect on October 1, 2000.

                          Subtitle D--Diabetes

SEC. 931. INCREASE IN APPROPRIATIONS FOR SPECIAL DIABETES PROGRAMS FOR 
            TYPE I DIABETES AND INDIANS.

    (a) Special Diabetes Programs for Type I Diabetes.--Section 330B(b) 
of the Public Health Service Act (42 U.S.C. 254c-2(b)) is amended--
            (1) by striking ``Notwithstanding'' and inserting the 
        following:
            ``(1) Transferred funds.--Notwithstanding''; and
            (2) by adding at the end the following:
            ``(2) Appropriations.--For the purpose of making grants 
        under this section, there is appropriated, out of any funds in 
        the Treasury not otherwise appropriated--
                    ``(A) $70,000,000 for each of fiscal years 2001 and 
                2002 (which shall be combined with amounts transferred 
                under paragraph (1) for each such fiscal years); and
                    ``(B) $100,000,000 for fiscal year 2003.''.

    (b) Special Diabetes Programs for Indians.--Section 330C(c) of such 
Act (42 U.S.C. 254c-3(c)) is amended--
            (1) by striking ``Notwithstanding'' and inserting the 
        following:
            ``(1) Transferred funds.--Notwithstanding''; and
            (2) by adding at the end the following:
            ``(2) Appropriations.--For the purpose of making grants 
        under this section, there is appropriated, out of any money in 
        the Treasury not otherwise appropriated--
                    ``(A) $70,000,000 for each of fiscal years 2001 and 
                2002 (which shall be combined with amounts transferred 
                under paragraph (1) for each such fiscal years); and
                    ``(B) $100,000,000 for fiscal year 2003.''.

    (c) Extension of Final Report on Grant Programs.--Section 4923(b)(2) 
of BBA is amended by striking ``2002'' and inserting ``2003''.

SEC. 932. APPROPRIATIONS FOR RICKY RAY HEMOPHILIA RELIEF FUND.

    Section 101(e) of the Ricky Ray Hemophilia Relief Fund Act of 1998 
(42 U.S.C. 300c-22 note) is amended by adding at the end the following: 
``There is appropriated to the Fund $475,000,000 for fiscal year 2001, 
to remain available until expended.''.

                Subtitle E--Information on Nurse Staffing

SEC. 941. POSTING OF INFORMATION ON NURSING FACILITY STAFFING.

    (a) Medicare.--Section 1819(b) (42 U.S.C. 1395i-3(b)) is amended by 
adding at the end the following new paragraph:
            ``(8) Information on nurse staffing.--
                    ``(A) In general.--A skilled nursing facility shall 
                post daily for each shift the current number of licensed 
                and unlicensed nursing staff directly responsible for 
                resident care in the facility. The information shall be 
                displayed

[[Page 114 STAT. 2763A-586]]

                in a uniform manner (as specified by the Secretary) and 
                in a clearly visible place.
                    ``(B) Publication of data.--A skilled nursing 
                facility shall, upon request, make available to the 
                public the nursing staff data described in subparagraph 
                (A).''.

    (b) Medicaid.--Section 1919(b) (42 U.S.C. 1395r(b)) is amended by 
adding at the end the following new paragraph:
            ``(8) Information on nurse staffing.--
                    ``(A) In general.--A nursing facility shall post 
                daily for each shift the current number of licensed and 
                unlicensed nursing staff directly responsible for 
                resident care in the facility. The information shall be 
                displayed in a uniform manner (as specified by the 
                Secretary) and in a clearly visible place.
                    ``(B) Publication of data.--A nursing facility 
                shall, upon request, make available to the public the 
                nursing staff data described in subparagraph (A).''.

    (c) Effective Date.--The amendments made by this section shall take 
effect on January 1, 2003.

    Subtitle F--Adjustment of Multiemployer Plan Benefits Guaranteed

SEC. 951. MULTIEMPLOYER PLAN BENEFITS GUARANTEED.

    (a) In General.--Section 4022A(c) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1322a(c)) is amended--
            (1) by striking ``$5'' each place it appears in paragraph 
        (1) and inserting ``$11'';
            (2) by striking ``$15'' in paragraph (1)(A)(i) and inserting 
        ``$33''; and
            (3) by striking paragraphs (2), (5), and (6) and by 
        redesignating paragraphs (3) and (4) as paragraphs (2) and (3), 
        respectively.

    (b) Effective Date.--The amendments made by this section shall apply 
to any multiemployer plan that has not received financial assistance 
(within the meaning of section 4261 of the Employee Retirement Income 
Security Act of 1974) within the 1-year period ending on the date of the 
enactment of this Act.

[[Page 114 STAT. 2763A-587]]

                          APPENDIX G--H.R. 5662

SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE.

    (a) Short Title.--This Act may be cited as the ``Community Renewal 
Tax Relief Act of 2000''.
    (b) Amendment of 1986 Code.--Except as otherwise expressly provided, 
whenever in this Act an amendment or repeal is expressed in terms of an 
amendment to, or repeal of, a section or other provision, the reference 
shall be considered to be made to a section or other provision of the 
Internal Revenue Code of 1986.
    (c) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; amendment of 1986 Code.

               TITLE I--COMMUNITY RENEWAL AND NEW MARKETS

           Subtitle A--Tax Incentives for Renewal Communities

Sec. 101. Designation of and tax incentives for renewal communities.
Sec. 102. Work opportunity credit for hiring youth residing in renewal 
           communities.

   Subtitle B--Extension and Expansion of Empowerment Zone Incentives

Sec. 111. Authority to designate nine additional empowerment zones.
Sec. 112. Extension of empowerment zone treatment through 2009.
Sec. 113. Twenty percent employment credit for all empowerment zones.
Sec. 114. Increased expensing under section 179.
Sec. 115. Higher limits on tax-exempt empowerment zone facility bonds.
Sec. 116. Nonrecognition of gain on rollover of empowerment zone 
           investments.
Sec. 117. Increased exclusion of gain on sale of empowerment zone stock.

                   Subtitle C--New Markets Tax Credit

Sec. 121. New markets tax credit.

          Subtitle D--Improvements in Low-Income Housing Credit

Sec. 131. Modification of State ceiling on low-income housing credit.
Sec. 132. Modification of criteria for allocating housing credits among 
           projects.
Sec. 133. Additional responsibilities of housing credit agencies.
Sec. 134. Modifications to rules relating to basis of building which is 
           eligible for credit.
Sec. 135. Other modifications.
Sec. 136. Carryforward rules.
Sec. 137. Effective date.

     Subtitle E--Other Community Renewal and New Markets Assistance

 Part I--Provisions relating to housing and substance abuse prevention 
                              and treatment

Sec. 141. Transfer of unoccupied and substandard HUD-held housing to 
           local 
           governments and community development corporations.
Sec. 142. Transfer of HUD assets in revitalization areas.
Sec. 143. Risk-sharing demonstration.
Sec. 144. Prevention and treatment of substance abuse; services provided 
           through religious organizations.

             Part II--Advisory Council on Community Renewal

Sec. 151. Short title.

[[Page 114 STAT. 2763A-588]]

Sec. 152. Establishment.
Sec. 153. Duties of Advisory Council.
Sec. 154. Membership.
Sec. 155. Powers of Advisory Council.
Sec. 156. Reports.
Sec. 157. Termination.
Sec. 158. Applicability of Federal Advisory Committee Act.
Sec. 159. Resources.
Sec. 160. Effective date.

                      Subtitle F--Other Provisions

Sec. 161. Acceleration of phase-in of increase in volume cap on private 
           activity bonds.
Sec. 162. Modifications to expensing of environmental remediation costs.
Sec. 163. Extension of DC homebuyer tax credit.
Sec. 164. Extension of DC Zone through 2003.
Sec. 165. Extension of enhanced deduction for corporate donations of 
           computer technology.
Sec. 166. Treatment of Indian tribal governments under Federal 
           Unemployment Tax Act.

TITLE II--TWO-YEAR EXTENSION OF AVAILABILITY OF MEDICAL SAVINGS ACCOUNTS

Sec. 201. Two-year extension of availability of medical savings 
           accounts.
Sec. 202. Medical savings accounts renamed as Archer MSAs.

           TITLE III--ADMINISTRATIVE AND TECHNICAL PROVISIONS

                  Subtitle A--Administrative Provisions

Sec. 301. Exemption of certain reporting requirements.
Sec. 302. Extension of deadlines for IRS compliance with certain notice 
           requirements.
Sec. 303. Extension of authority for undercover operations.
Sec. 304. Confidentiality of certain documents relating to closing and 
           similar agreements and to agreements with foreign 
           governments.
Sec. 305. Increase in threshold for Joint Committee reports on refunds 
           and credits.
Sec. 306. Treatment of missing children with respect to certain tax 
           benefits.
Sec. 307. Amendments to statutes referencing yield on 52-week Treasury 
           bills.
Sec. 308. Adjustments for Consumer Price Index error.
Sec. 309. Prevention of duplication of loss through assumption of 
           liabilities giving rise to a deduction.
Sec. 310. Disclosure of certain information to Congressional Budget 
           Office.

                    Subtitle B--Technical Corrections

Sec. 311. Amendments related to Ticket to Work and Work Incentives 
           Improvement Act of 1999.
Sec. 312. Amendments related to Tax and Trade Relief Extension Act of 
           1998.
Sec. 313. Amendments related to Internal Revenue Service Restructuring 
           and 
           Reform Act of 1998.
Sec. 314. Amendments related to Taxpayer Relief Act of 1997.
Sec. 315. Amendments related to Balanced Budget Act of 1997.
Sec. 316. Amendments related to Small Business Job Protection Act of 
           1996.
Sec. 317. Amendment related to Revenue Reconciliation Act of 1990.
Sec. 318. Other technical corrections.
Sec. 319. Clerical changes.

         TITLE IV--TAX TREATMENT OF SECURITIES FUTURES CONTRACTS

Sec. 401. Tax treatment of securities futures contracts.

[[Page 114 STAT. 2763A-589]]

               TITLE I--COMMUNITY RENEWAL AND NEW MARKETS

           Subtitle A--Tax Incentives for Renewal Communities

SEC. 101. DESIGNATION OF AND TAX INCENTIVES FOR RENEWAL COMMUNITIES.

    (a) In General.--Chapter 1 is amended by adding at the end the 
following new subchapter:

                   ``Subchapter X--Renewal Communities

                ``Part   I. Designation.
                ``Part  II. Renewal community capital gain; renewal 
                                community business.
                ``Part  III. Additional incentives.

                          ``PART I--DESIGNATION

                ``Sec. 1400E. Designation of renewal communities.

``SEC. 1400E. DESIGNATION OF RENEWAL COMMUNITIES.

    ``(a) Designation.--
            ``(1) Definitions.--For purposes of this title, the term 
        `renewal community' means any area--
                    ``(A) which is nominated by 1 or more local 
                governments and the State or States in which it is 
                located for designation as a renewal community 
                (hereafter in this section referred to as a `nominated 
                area'), and
                    ``(B) which the Secretary of Housing and Urban 
                Development designates as a renewal community, after 
                consultation with--
                          ``(i) the Secretaries of Agriculture, 
                      Commerce, Labor, and the Treasury; the Director of 
                      the Office of Management and Budget, and the 
                      Administrator of the Small Business 
                      Administration, and
                          ``(ii) in the case of an area on an Indian 
                      reservation, the Secretary of the Interior.
            ``(2) Number of designations.--
                    ``(A) In general.--Not more than 40 nominated areas 
                may be designated as renewal communities.
                    ``(B) Minimum designation in rural areas.--Of the 
                areas designated under paragraph (1), at least 12 must 
                be areas--
                          ``(i) which are within a local government 
                      jurisdiction or jurisdictions with a population of 
                      less than 50,000,
                          ``(ii) which are outside of a metropolitan 
                      statistical area (within the meaning of section 
                      143(k)(2)(B)), or
                          ``(iii) which are determined by the Secretary 
                      of Housing and Urban Development, after 
                      consultation with the Secretary of Commerce, to be 
                      rural areas.
            ``(3) Areas designated based on degree of poverty, etc.--
                    ``(A) In general.--Except as otherwise provided in 
                this section, the nominated areas designated as renewal

[[Page 114 STAT. 2763A-590]]

                communities under this subsection shall be those 
                nominated areas with the highest average ranking with 
                respect to the criteria described in subparagraphs (B), 
                (C), and (D) of subsection (c)(3). For purposes of the 
                preceding sentence, an area shall be ranked within each 
                such criterion on the basis of the amount by which the 
                area exceeds such criterion, with the area which exceeds 
                such criterion by the greatest amount given the highest 
                ranking.
                    ``(B) Exception where inadequate course of action, 
                etc.--An area shall not be designated under subparagraph 
                (A) if the Secretary of Housing and Urban Development 
                determines that the course of action described in 
                subsection (d)(2) with respect to such area is 
                inadequate.
                    ``(C) Preference for enterprise communities and 
                empowerment zones.--With respect to the first 20 
                designations made under this section, a preference shall 
                be provided to those nominated areas which are 
                enterprise communities or empowerment zones (and are 
                otherwise eligible for designation under this section).
            ``(4) Limitation on designations.--
                    ``(A) Publication of regulations.--The Secretary of 
                Housing and Urban Development shall prescribe by 
                regulation no later than 4 months after the date of the 
                enactment of this section, after consultation with the 
                officials described in paragraph (1)(B)--
                          ``(i) the procedures for nominating an area 
                      under paragraph (1)(A),
                          ``(ii) the parameters relating to the size and 
                      population characteristics of a renewal community, 
                      and
                          ``(iii) the manner in which nominated areas 
                      will be evaluated based on the criteria specified 
                      in subsection (d).
                    ``(B) Time limitations.--The Secretary of Housing 
                and Urban Development may designate nominated areas as 
                renewal communities only during the period beginning on 
                the first day of the first month following the month in 
                which the regulations described in subparagraph (A) are 
                prescribed and ending on December 31, 2001.
                    ``(C) Procedural rules.--The Secretary of Housing 
                and Urban Development shall not make any designation of 
                a nominated area as a renewal community under paragraph 
                (2) unless--
                          ``(i) the local governments and the States in 
                      which the nominated area is located have the 
                      authority--
                                    ``(I) to nominate such area for 
                                designation as a renewal community,
                                    ``(II) to make the State and local 
                                commitments described in subsection (d), 
                                and
                                    ``(III) to provide assurances 
                                satisfactory to the Secretary of Housing 
                                and Urban Development that such 
                                commitments will be fulfilled,
                          ``(ii) a nomination regarding such area is 
                      submitted in such a manner and in such form, and 
                      contains such information, as the Secretary of 
                      Housing and Urban Development shall by regulation 
                      prescribe, and

[[Page 114 STAT. 2763A-591]]

                          ``(iii) the Secretary of Housing and Urban 
                      Development determines that any information 
                      furnished is reasonably accurate.
            ``(5) Nomination process for indian reservations.--For 
        purposes of this subchapter, in the case of a nominated area on 
        an Indian reservation, the reservation governing body (as 
        determined by the Secretary of the Interior) shall be treated as 
        being both the State and local governments with respect to such 
        area.

    ``(b) Period for Which Designation Is in Effect.--
            ``(1) In general.--Any designation of an area as a renewal 
        community shall remain in effect during the period beginning on 
        January 1, 2002, and ending on the earliest of--
                    ``(A) December 31, 2009,
                    ``(B) the termination date designated by the State 
                and local governments in their nomination, or
                    ``(C) the date the Secretary of Housing and Urban 
                Development revokes such designation.
            ``(2) Revocation of designation.--The Secretary of Housing 
        and Urban Development may revoke the designation under this 
        section of an area if such Secretary determines that the local 
        government or the State in which the area is located--
                    ``(A) has modified the boundaries of the area, or
                    ``(B) is not complying substantially with, or fails 
                to make progress in achieving, the State or local 
                commitments, respectively, described in subsection (d).
            ``(3) Earlier termination of certain benefits if earlier 
        termination of designation.--If the designation of an area as a 
        renewal community terminates before December 31, 2009, the day 
        after the date of such termination shall be substituted for 
        `January 1, 2010' each place it appears in sections 1400F and 
        1400J with respect to such area.

    ``(c) Area and Eligibility Requirements.--
            ``(1) In general.--The Secretary of Housing and Urban 
        Development may designate a nominated area as a renewal 
        community under subsection (a) only if the area meets the 
        requirements of paragraphs (2) and (3) of this subsection.
            ``(2) Area requirements.--A nominated area meets the 
        requirements of this paragraph if--
                    ``(A) the area is within the jurisdiction of one or 
                more local governments,
                    ``(B) the boundary of the area is continuous, and
                    ``(C) the area--
                          ``(i) has a population of not more than 
                      200,000 and at least--
                                    ``(I) 4,000 if any portion of such 
                                area (other than a rural area described 
                                in subsection (a)(2)(B)(i)) is located 
                                within a metropolitan statistical area 
                                (within the meaning of section 
                                143(k)(2)(B)) which has a population of 
                                50,000 or greater, or
                                    ``(II) 1,000 in any other case, or
                          ``(ii) is entirely within an Indian 
                      reservation (as determined by the Secretary of the 
                      Interior).
            ``(3) Eligibility requirements.--A nominated area meets the 
        requirements of this paragraph if the State and the local 
        governments in which it is located certify in writing (and the

[[Page 114 STAT. 2763A-592]]

        Secretary of Housing and Urban Development, after such review of 
        supporting data as he deems appropriate, accepts such 
        certification) that--
                    ``(A) the area is one of pervasive poverty, 
                unemployment, and general distress,
                    ``(B) the unemployment rate in the area, as 
                determined by the most recent available data, was at 
                least 1\1/2\ times the national unemployment rate for 
                the period to which such data relate,
                    ``(C) the poverty rate for each population census 
                tract within the nominated area is at least 20 percent, 
                and
                    ``(D) in the case of an urban area, at least 70 
                percent of the households living in the area have 
                incomes below 80 percent of the median income of 
                households within the jurisdiction of the local 
                government (determined in the same manner as under 
                section 119(b)(2) of the Housing and Community 
                Development Act of 1974).
            ``(4) Consideration of other factors.--The Secretary of 
        Housing and Urban Development, in selecting any nominated area 
        for designation as a renewal community under this section--
                    ``(A) shall take into account--
                          ``(i) the extent to which such area has a high 
                      incidence of crime, or
                          ``(ii) if such area has census tracts 
                      identified in the May 12, 1998, report of the 
                      General Accounting Office regarding the 
                      identification of economically distressed areas, 
                      and
                    ``(B) with respect to 1 of the areas to be 
                designated under subsection (a)(2)(B), may, in lieu of 
                any criteria described in paragraph (3), take into 
                account the existence of outmigration from the area.

    ``(d) Required State and Local Commitments.--
            ``(1) In general.--The Secretary of Housing and Urban 
        Development may designate any nominated area as a renewal 
        community under subsection (a) only if--
                    ``(A) the local government and the State in which 
                the area is located agree in writing that, during any 
                period during which the area is a renewal community, 
                such governments will follow a specified course of 
                action which meets the requirements of paragraph (2) and 
                is designed to reduce the various burdens borne by 
                employers or employees in such area, and
                    ``(B) the economic growth promotion requirements of 
                paragraph (3) are met.
            ``(2) Course of action.--
                    ``(A) In general.--A course of action meets the 
                requirements of this paragraph if such course of action 
                is a written document, signed by a State (or local 
                government) and neighborhood organizations, which 
                evidences a partnership between such State or government 
                and community-based organizations and which commits each 
                signatory to specific and measurable goals, actions, and 
                timetables. Such course of action shall include at least 
                4 of the following:
                          ``(i) A reduction of tax rates or fees 
                      applying within the renewal community.

[[Page 114 STAT. 2763A-593]]

                          ``(ii) An increase in the level of efficiency 
                      of local services within the renewal community.
                          ``(iii) Crime reduction strategies, such as 
                      crime prevention (including the provision of crime 
                      prevention services by nongovernmental entities).
                          ``(iv) Actions to reduce, remove, simplify, or 
                      streamline governmental requirements applying 
                      within the renewal community.
                          ``(v) Involvement in the program by private 
                      entities, organizations, neighborhood 
                      organizations, and community groups, particularly 
                      those in the renewal community, including a 
                      commitment from such private entities to provide 
                      jobs and job training for, and technical, 
                      financial, or other assistance to, employers, 
                      employees, and residents from the renewal 
                      community.
                          ``(vi) The gift (or sale at below fair market 
                      value) of surplus real property (such as land, 
                      homes, and commercial or industrial structures) in 
                      the renewal community to neighborhood 
                      organizations, community development corporations, 
                      or private companies.
                    ``(B) Recognition of past efforts.--For purposes of 
                this section, in evaluating the course of action agreed 
                to by any State or local government, the Secretary of 
                Housing and Urban Development shall take into account 
                the past efforts of such State or local government in 
                reducing the various burdens borne by employers and 
                employees in the area involved.
            ``(3) Economic growth promotion requirements.--The economic 
        growth promotion requirements of this paragraph are met with 
        respect to a nominated area if the local government and the 
        State in which such area is located certify in writing that such 
        government and State (respectively) have repealed or reduced, 
        will not enforce, or will reduce within the nominated area at 
        least 4 of the following:
                    ``(A) Licensing requirements for occupations that do 
                not ordinarily require a professional degree.
                    ``(B) Zoning restrictions on home-based businesses 
                which do not create a public nuisance.
                    ``(C) Permit requirements for street vendors who do 
                not create a public nuisance.
                    ``(D) Zoning or other restrictions that impede the 
                formation of schools or child care centers.
                    ``(E) Franchises or other restrictions on 
                competition for businesses providing public services, 
                including taxicabs, jitneys, cable television, or trash 
                hauling.
        This paragraph shall not apply to the extent that such 
        regulation of businesses and occupations is necessary for and 
        well-tailored to the protection of health and safety.

    ``(e) Coordination With Treatment of Empowerment Zones and 
Enterprise Communities.--For purposes of this title, the designation 
under section 1391 of any area as an empowerment zone or enterprise 
community shall cease to be in effect as of the date that the 
designation of any portion of such area as a renewal community takes 
effect.
    ``(f ) Definitions and Special Rules.--For purposes of this 
subchapter--

[[Page 114 STAT. 2763A-594]]

            ``(1) Governments.--If more than one government seeks to 
        nominate an area as a renewal community, any reference to, or 
        requirement of, this section shall apply to all such 
        governments.
            ``(2) Local government.--The term `local government' means--
                    ``(A) any county, city, town, township, parish, 
                village, or other general purpose political subdivision 
                of a State, and
                    ``(B) any combination of political subdivisions 
                described in subparagraph (A) recognized by the 
                Secretary of Housing and Urban Development.
            ``(3) Application of rules relating to census tracts.--The 
        rules of section 1392(b)(4) shall apply.
            ``(4) Census data.--Population and poverty rate shall be 
        determined by using 1990 census data.

  ``PART II--RENEWAL COMMUNITY CAPITAL GAIN; RENEWAL COMMUNITY BUSINESS

                ``Sec. 1400F. Renewal community capital gain.
                ``Sec. 1400G. Renewal community business defined.

``SEC. 1400F. RENEWAL COMMUNITY CAPITAL GAIN.

    ``(a) General Rule.--Gross income does not include any qualified 
capital gain from the sale or exchange of a qualified community asset 
held for more than 5 years.
    ``(b) Qualified Community Asset.--For purposes of this section--
            ``(1) In general.--The term `qualified community asset' 
        means--
                    ``(A) any qualified community stock,
                    ``(B) any qualified community partnership interest, 
                and
                    ``(C) any qualified community business property.
            ``(2) Qualified community stock.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the term `qualified community stock' 
                means any stock in a domestic corporation if--
                          ``(i) such stock is acquired by the taxpayer 
                      after December 31, 2001, and before January 1, 
                      2010, at its original issue (directly or through 
                      an underwriter) from the corporation solely in 
                      exchange for cash,
                          ``(ii) as of the time such stock was issued, 
                      such corporation was a renewal community business 
                      (or, in the case of a new corporation, such 
                      corporation was being organized for purposes of 
                      being a renewal community business), and
                          ``(iii) during substantially all of the 
                      taxpayer's holding period for such stock, such 
                      corporation qualified as a renewal community 
                      business.
                    ``(B) Redemptions.--A rule similar to the rule of 
                section 1202(c)(3) shall apply for purposes of this 
                paragraph.
            ``(3) Qualified community partnership interest.--The term 
        `qualified community partnership interest' means any capital or 
        profits interest in a domestic partnership if--
                    ``(A) such interest is acquired by the taxpayer 
                after December 31, 2001, and before January 1, 2010, 
                from the partnership solely in exchange for cash,

[[Page 114 STAT. 2763A-595]]

                    ``(B) as of the time such interest was acquired, 
                such partnership was a renewal community business (or, 
                in the case of a new partnership, such partnership was 
                being organized for purposes of being a renewal 
                community business), and
                    ``(C) during substantially all of the taxpayer's 
                holding period for such interest, such partnership 
                qualified as a renewal community business.
        A rule similar to the rule of paragraph (2)(B) shall apply for 
        purposes of this paragraph.
            ``(4) Qualified community business property.--
                    ``(A) In general.--The term `qualified community 
                business property' means tangible property if--
                          ``(i) such property was acquired by the 
                      taxpayer by purchase (as defined in section 
                      179(d)(2)) after December 31, 2001, and before 
                      January 1, 2010,
                          ``(ii) the original use of such property in 
                      the renewal community commences with the taxpayer, 
                      and
                          ``(iii) during substantially all of the 
                      taxpayer's holding period for such property, 
                      substantially all of the use of such property was 
                      in a renewal community business of the taxpayer.
                    ``(B) Special rule for substantial improvements.--
                The requirements of clauses (i) and (ii) of subparagraph 
                (A) shall be treated as satisfied with respect to--
                          ``(i) property which is substantially improved 
                      by the taxpayer before January 1, 2010, and
                          ``(ii) any land on which such property is 
                      located.
                The determination of whether a property is substantially 
                improved shall be made under clause (ii) of section 
                1400B(b)(4)(B), except that `December 31, 2001' shall be 
                substituted for `December 31, 1997' in such clause.

    ``(c) Qualified Capital Gain.--For purposes of this section--
            ``(1) In general.--Except as otherwise provided in this 
        subsection, the term `qualified capital gain' means any gain 
        recognized on the sale or exchange of--
                    ``(A) a capital asset, or
                    ``(B) property used in the trade or business (as 
                defined in section 1231(b)).
            ``(2) Gain before 2002 or after 2014 not qualified.--The 
        term `qualified capital gain' shall not include any gain 
        attributable to periods before January 1, 2002, or after 
        December 31, 2014.
            ``(3) Certain rules to apply.--Rules similar to the rules of 
        paragraphs (3), (4), and (5) of section 1400B(e) shall apply for 
        purposes of this subsection.

    ``(d) Certain Rules To Apply.--For purposes of this section, rules 
similar to the rules of paragraphs (5), (6), and (7) of subsection (b), 
and subsections (f ) and (g), of section 1400B shall apply; except that 
for such purposes section 1400B(g)(2) shall be applied by substituting 
`January 1, 2002' for `January 1, 1998' and `December 31, 2014' for 
`December 31, 2008'.
    ``(e) Regulations.--The Secretary shall prescribe such regulations 
as may be appropriate to carry out the purposes of this section, 
including regulations to prevent the abuse of the purposes of this 
section.

[[Page 114 STAT. 2763A-596]]

``SEC. 1400G. RENEWAL COMMUNITY BUSINESS DEFINED.

    ``For purposes of this subchapter, the term `renewal community 
business' means any entity or proprietorship which would be a qualified 
business entity or qualified proprietorship under section 1397C if 
references to renewal communities were substituted for references to 
empowerment zones in such section.

                    ``PART III--ADDITIONAL INCENTIVES

                ``Sec. 1400H. Renewal community employment credit.
                ``Sec. 1400I. Commercial revitalization deduction.
                ``Sec. 1400J. Increase in expensing under section 179.

``SEC. 1400H. RENEWAL COMMUNITY EMPLOYMENT CREDIT.

    ``(a) In General.--Subject to the modification in subsection (b), a 
renewal community shall be treated as an empowerment zone for purposes 
of section 1396 with respect to wages paid or incurred after December 
31, 2001.
    ``(b) Modification.--In applying section 1396 with respect to 
renewal communities--
            ``(1) the applicable percentage shall be 15 percent, and
            ``(2) subsection (c) thereof shall be applied by 
        substituting `$10,000' for `$15,000' each place it appears.

``SEC. 1400I. COMMERCIAL REVITALIZATION DEDUCTION.

    ``(a) General Rule.--At the election of the taxpayer, either--
            ``(1) one-half of any qualified revitalization expenditures 
        chargeable to capital account with respect to any qualified 
        revitalization building shall be allowable as a deduction for 
        the taxable year in which the building is placed in service, or
            ``(2) a deduction for all such expenditures shall be 
        allowable ratably over the 120-month period beginning with the 
        month in which the building is placed in service.

    ``(b) Qualified Revitalization Buildings and Expenditures.--For 
purposes of this section--
            ``(1) Qualified revitalization building.--The term 
        `qualified revitalization building' means any building (and its 
        structural components) if--
                    ``(A) the building is placed in service by the 
                taxpayer in a renewal community and the original use of 
                the building begins with the taxpayer, or
                    ``(B) in the case of such building not described in 
                subparagraph (A), such building--
                          ``(i) is substantially rehabilitated (within 
                      the meaning of section 47(c)(1)(C)) by the 
                      taxpayer, and
                          ``(ii) is placed in service by the taxpayer 
                      after the rehabilitation in a renewal community.
            ``(2) Qualified revitalization expenditure.--
                    ``(A) In general.--The term `qualified 
                revitalization expenditure' means any amount properly 
                chargeable to capital account for property for which 
                depreciation is allowable under section 168 (without 
                regard to this section) and which is--
                          ``(i) nonresidential real property (as defined 
                      in section 168(e)), or

[[Page 114 STAT. 2763A-597]]

                          ``(ii) section 1250 property (as defined in 
                      section 1250(c)) which is functionally related and 
                      subordinate to property described in clause (i).
                    ``(B) Certain expenditures not included.--
                          ``(i) Acquisition cost.--In the case of a 
                      building described in paragraph (1)(B), the cost 
                      of acquiring the building or interest therein 
                      shall be treated as a qualified revitalization 
                      expenditure only to the extent that such cost does 
                      not exceed 30 percent of the aggregate qualified 
                      revitalization expenditures (determined without 
                      regard to such cost) with respect to such 
                      building.
                          ``(ii) Credits.--The term `qualified 
                      revitalization expenditure' does not include any 
                      expenditure which the taxpayer may take into 
                      account in computing any credit allowable under 
                      this title unless the taxpayer elects to take the 
                      expenditure into account only for purposes of this 
                      section.

    ``(c) Dollar Limitation.--The aggregate amount which may be treated 
as qualified revitalization expenditures with respect to any qualified 
revitalization building shall not exceed the lesser of--
            ``(1) $10,000,000, or
            ``(2) the commercial revitalization expenditure amount 
        allocated to such building under this section by the commercial 
        revitalization agency for the State in which the building is 
        located.

    ``(d) Commercial Revitalization Expenditure Amount.--
            ``(1) In general.--The aggregate commercial revitalization 
        expenditure amount which a commercial revitalization agency may 
        allocate for any calendar year is the amount of the State 
        commercial revitalization expenditure ceiling determined under 
        this paragraph for such calendar year for such agency.
            ``(2) State commercial revitalization expenditure ceiling.--
        The State commercial revitalization expenditure ceiling 
        applicable to any State--
                    ``(A) for each calendar year after 2001 and before 
                2010 is $12,000,000 for each renewal community in the 
                State, and
                    ``(B) for each calendar year thereafter is zero.
            ``(3) Commercial revitalization agency.--For purposes of 
        this section, the term `commercial revitalization agency' means 
        any agency authorized by a State to carry out this section.
            ``(4) Time and manner of allocations.--Allocations under 
        this section shall be made at the same time and in the same 
        manner as under paragraphs (1) and (7) of section 42(h).

    ``(e) Responsibilities of Commercial Revitalization Agencies.--
            ``(1) Plans for allocation.--Notwithstanding any other 
        provision of this section, the commercial revitalization 
        expenditure amount with respect to any building shall be zero 
        unless--
                    ``(A) such amount was allocated pursuant to a 
                qualified allocation plan of the commercial 
                revitalization agency which is approved (in accordance 
                with rules similar to the rules of section 147(f )(2) 
                (other than subparagraph

[[Page 114 STAT. 2763A-598]]

                (B)(ii) thereof )) by the governmental unit of which 
                such agency is a part, and
                    ``(B) such agency notifies the chief executive 
                officer (or its equivalent) of the local jurisdiction 
                within which the building is located of such allocation 
                and provides such individual a reasonable opportunity to 
                comment on the allocation.
            ``(2) Qualified allocation plan.--For purposes of this 
        subsection, the term `qualified allocation plan' means any 
        plan--
                    ``(A) which sets forth selection criteria to be used 
                to determine priorities of the commercial revitalization 
                agency which are appropriate to local conditions,
                    ``(B) which considers--
                          ``(i) the degree to which a project 
                      contributes to the implementation of a strategic 
                      plan that is devised for a renewal community 
                      through a citizen participation process,
                          ``(ii) the amount of any increase in 
                      permanent, full-time employment by reason of any 
                      project, and
                          ``(iii) the active involvement of residents 
                      and nonprofit groups within the renewal community, 
                      and
                    ``(C) which provides a procedure that the agency (or 
                its agent) will follow in monitoring compliance with 
                this section.

    ``(f ) Special Rules.--
            ``(1) Deduction in lieu of depreciation.--The deduction 
        provided by this section for qualified revitalization 
        expenditures shall--
                    ``(A) with respect to the deduction determined under 
                subsection (a)(1), be in lieu of any depreciation 
                deduction otherwise allowable on account of one-half of 
                such expenditures, and
                    ``(B) with respect to the deduction determined under 
                subsection (a)(2), be in lieu of any depreciation 
                deduction otherwise allowable on account of all of such 
                expenditures.
            ``(2) Basis adjustment, etc.--For purposes of sections 1016 
        and 1250, the deduction under this section shall be treated in 
        the same manner as a depreciation deduction. For purposes of 
        section 1250(b)(5), the straight line method of adjustment shall 
        be determined without regard to this section.
            ``(3) Substantial rehabilitations treated as separate 
        buildings.--A substantial rehabilitation (within the meaning of 
        section 47(c)(1)(C)) of a building shall be treated as a 
        separate building for purposes of subsection (a).
            ``(4) Clarification of allowance of deduction under minimum 
        tax.--Notwithstanding section 56(a)(1), the deduction under this 
        section shall be allowed in determining alternative minimum 
        taxable income under section 55.

    ``(g) Termination.--This section shall not apply to any building 
placed in service after December 31, 2009.

``SEC. 1400J. INCREASE IN EXPENSING UNDER SECTION 179.

    ``(a) In General.--For purposes of section 1397A--
            ``(1) a renewal community shall be treated as an empowerment 
        zone,

[[Page 114 STAT. 2763A-599]]

            ``(2) a renewal community business shall be treated as an 
        enterprise zone business, and
            ``(3) qualified renewal property shall be treated as 
        qualified zone property.

    ``(b) Qualified Renewal Property.--For purposes of this section--
            ``(1) In general.--The term `qualified renewal property' 
        means any property to which section 168 applies (or would apply 
        but for section 179) if--
                    ``(A) such property was acquired by the taxpayer by 
                purchase (as defined in section 179(d)(2)) after 
                December 31, 2001, and before January 1, 2010, and
                    ``(B) such property would be qualified zone property 
                (as defined in section 1397D) if references to renewal 
                communities were substituted for references to 
                empowerment zones in section 1397D.
            ``(2) Certain rules to apply.--The rules of subsections 
        (a)(2) and (b) of section 1397D shall apply for purposes of this 
        section.''.

    (b) Exception for Commercial Revitalization Deduction From Passive 
Loss Rules.--
            (1) Paragraph (3) of section 469(i) is amended by 
        redesignating subparagraphs (C), (D), and (E) as subparagraphs 
        (D), (E), and (F), respectively, and by inserting after 
        subparagraph (B) the following new subparagraph:
                    ``(C) Exception for commercial revitalization 
                deduction.--Subparagraph (A) shall not apply to any 
                portion of the passive activity loss for any taxable 
                year which is attributable to the commercial 
                revitalization deduction under section 1400I.''.
            (2) Subparagraph (E) of section 469(i)(3), as redesignated 
        by subparagraph (A), is amended to read as follows:
                    ``(E) Ordering rules to reflect exceptions and 
                separate phase-outs.--If subparagraph (B), (C), or (D) 
                applies for a taxable year, paragraph (1) shall be 
                applied--
                          ``(i) first to the portion of the passive 
                      activity loss to which subparagraph (C) does not 
                      apply,
                          ``(ii) second to the portion of the passive 
                      activity credit to which subparagraph (B) or (D) 
                      does not apply,
                          ``(iii) third to the portion of such credit to 
                      which subparagraph (B) applies,
                          ``(iv) fourth to the portion of such loss to 
                      which subparagraph (C) applies, and
                          ``(v) then to the portion of such credit to 
                      which subparagraph (D) applies.''.
            (3)(A) Subparagraph (B) of section 469(i)(6) is amended by 
        striking ``or'' at the end of clause (i), by striking the period 
        at the end of clause (ii) and inserting ``, or'', and by adding 
        at the end the following new clause:
                          ``(iii) any deduction under section 1400I 
                      (relating to commercial revitalization 
                      deduction).''.
            (B) The heading for such subparagraph (B) is amended by 
        striking ``or rehabilitation credit'' and inserting ``, 
        rehabilitation credit, or commercial revitalization deduction''.

    (c) Audit and Report.--Not later than January 31 of 2004, 2007, and 
2010, the Comptroller General of the United States

[[Page 114 STAT. 2763A-600]]

shall, pursuant to an audit of the renewal community program established 
under section 1400E of the Internal Revenue Code of 1986 (as added by 
subsection (a)) and the empowerment zone and enterprise community 
program under subchapter U of chapter 1 of such Code, report to Congress 
on such program and its effect on poverty, unemployment, and economic 
growth within the designated renewal communities, empowerment zones, and 
enterprise communities.
    (d) Clerical Amendment.--The table of subchapters for chapter 1 is 
amended by adding at the end the following new item:

                ``Subchapter X. Renewal Communities.''.

SEC. 102. WORK OPPORTUNITY CREDIT FOR HIRING YOUTH RESIDING IN RENEWAL 
            COMMUNITIES.

    (a) High-Risk Youth.--Subparagraphs (A)(ii) and (B) of section 
51(d)(5) are each amended by striking ``empowerment zone or enterprise 
community'' and inserting ``empowerment zone, enterprise community, or 
renewal community''.
    (b) Qualified Summer Youth Employee.--Clause (iv) of section 
51(d)(7)(A) is amended by striking ``empowerment zone or enterprise 
community'' and inserting ``empowerment zone, enterprise community, or 
renewal community''.
    (c) Headings.--Paragraphs (5)(B) and (7)(C) of section 51(d) are 
each amended by inserting ``or community'' in the heading after 
``zone''.
    (d) Effective Date.--The amendments made by this section shall apply 
to individuals who begin work for the employer after December 31, 2001.

   Subtitle B--Extension and Expansion of Empowerment Zone Incentives

SEC. 111. AUTHORITY TO DESIGNATE 9 ADDITIONAL EMPOWERMENT ZONES.

    Section 1391 is amended by adding at the end the following new 
subsection:
    ``(h) Additional Designations Permitted.--
            ``(1) In general.--In addition to the areas designated under 
        subsections (a) and (g), the appropriate Secretaries may 
        designate in the aggregate an additional 9 nominated areas as 
        empowerment zones under this section, subject to the 
        availability of eligible nominated areas. Of that number, not 
        more than seven may be designated in urban areas and not more 
        than 2 may be designated in rural areas.
            ``(2) Period designations may be made and take effect.--A 
        designation may be made under this subsection after the date of 
        the enactment of this subsection and before January 1, 2002. 
        Subject to subparagraphs (B) and (C) of subsection (d)(1), such 
        designations shall remain in effect during the period beginning 
        on January 1, 2002, and ending on December 31, 2009.
            ``(3) Modifications to eligibility criteria, etc.--The rules 
        of subsection (g)(3) shall apply to designations under this 
        subsection.

[[Page 114 STAT. 2763A-601]]

            ``(4) Empowerment zones which become renewal communities.--
        The number of areas which may be designated as empowerment zones 
        under this subsection shall be increased by 1 for each area 
        which ceases to be an empowerment zone by reason of section 
        1400E(e). Each additional area designated by reason of the 
        preceding sentence shall have the same urban or rural character 
        as the area it is replacing.''.

SEC. 112. EXTENSION OF EMPOWERMENT ZONE TREATMENT THROUGH 2009.

    Subparagraph (A) of section 1391(d)(1) (relating to period for which 
designation is in effect) is amended to read as follows:
                    ``(A)(i) in the case of an empowerment zone, 
                December 31, 2009, or
                    ``(ii) in the case of an enterprise community, the 
                close of the 10th calendar year beginning on or after 
                such date of designation,''.

SEC. 113. 20 PERCENT EMPLOYMENT CREDIT FOR ALL EMPOWERMENT ZONES.

    (a) 20 Percent Credit.--Subsection (b) of section 1396 (relating to 
empowerment zone employment credit) is amended to read as follows:
    ``(b) Applicable Percentage.--For purposes of this section, the 
applicable percentage is 20 percent.''.
    (b) All Empowerment Zones Eligible for Credit.--Section 1396 is 
amended by striking subsection (e).
    (c) Conforming Amendment.--Subsection (d) of section 1400 is amended 
to read as follows:
    ``(d) Special Rule for Application of Employment Credit.--With 
respect to the DC Zone, section 1396(d)(1)(B) (relating to empowerment 
zone employment credit) shall be applied by substituting `the District 
of Columbia' for `such empowerment zone'.''.
    (d) Effective Date.--The amendments made by this section shall apply 
to wages paid or incurred after December 31, 2001.

SEC. 114. INCREASED EXPENSING UNDER SECTION 179.

    (a) In General.--Subparagraph (A) of section 1397A(a)(1) is amended 
by striking ``$20,000'' and inserting ``$35,000''.
    (b) Expensing for Property Used in Developable Sites.--Section 1397A 
is amended by striking subsection (c).
    (c) Effective Date.--The amendments made by this section shall apply 
to taxable years beginning after December 31, 2001.

SEC. 115. HIGHER LIMITS ON TAX-EXEMPT EMPOWERMENT ZONE FACILITY BONDS.

    (a) In General.--Paragraph (3) of section 1394(f ) (relating to 
bonds for empowerment zones designated under section 1391(g)) is amended 
to read as follows:
            ``(3) Empowerment zone facility bond.--For purposes of this 
        subsection, the term `empowerment zone facility bond' means any 
        bond which would be described in subsection (a) if--
                    ``(A) in the case of obligations issued before 
                January 1, 2002, only empowerment zones designated under 
                section 1391(g) were taken into account under sections 
                1397C and 1397D, and

[[Page 114 STAT. 2763A-602]]

                    ``(B) in the case of obligations issued after 
                December 31, 2001, all empowerment zones (other than the 
                District of Columbia Enterprise Zone) were taken into 
                account under sections 1397C and 1397D.''.

    (b) Effective Date.--The amendments made by this section shall apply 
to obligations issued after December 31, 2001.

SEC. 116. NONRECOGNITION OF GAIN ON ROLLOVER OF EMPOWERMENT ZONE 
            INVESTMENTS.

    (a) In General.--Part III of subchapter U of chapter 1 is amended--
            (1) by redesignating subpart C as subpart D,
            (2) by redesignating sections 1397B and 1397C as sections 
        1397C and 1397D, respectively, and
            (3) by inserting after subpart B the following new subpart:

  ``Subpart C--Nonrecognition of Gain on Rollover of Empowerment Zone 
                               Investments

                ``Sec. 1397B. Nonrecognition of gain on rollover of 
                                empowerment zone investments.

``SEC. 1397B. NONRECOGNITION OF GAIN ON ROLLOVER OF EMPOWERMENT ZONE 
            INVESTMENTS.

    ``(a) Nonrecognition of Gain.--In the case of any sale of a 
qualified empowerment zone asset held by the taxpayer for more than 1 
year and with respect to which such taxpayer elects the application of 
this section, gain from such sale shall be recognized only to the extent 
that the amount realized on such sale exceeds--
            ``(1) the cost of any qualified empowerment zone asset (with 
        respect to the same zone as the asset sold) purchased by the 
        taxpayer during the 60-day period beginning on the date of such 
        sale, reduced by
            ``(2) any portion of such cost previously taken into account 
        under this section.

    ``(b) Definitions and Special Rules.--For purposes of this section--
            ``(1) Qualified empowerment zone asset.--
                    ``(A) In general.--The term `qualified empowerment 
                zone asset' means any property which would be a 
                qualified community asset (as defined in section 1400F) 
                if in section 1400F--
                          ``(i) references to empowerment zones were 
                      substituted for references to renewal communities,
                          ``(ii) references to enterprise zone 
                      businesses (as defined in section 1397C) were 
                      substituted for references to renewal community 
                      businesses, and
                          ``(iii) the date of the enactment of this 
                      paragraph were substituted for `December 31, 2001' 
                      each place it appears.
                    ``(B) Treatment of dc zone.--The District of 
                Columbia Enterprise Zone shall not be treated as an 
                empowerment zone for purposes of this section.
            ``(2) Certain gain not eligible for rollover.--This section 
        shall not apply to--
                    ``(A) any gain which is treated as ordinary income 
                for purposes of this subtitle, and

[[Page 114 STAT. 2763A-603]]

                    ``(B) any gain which is attributable to real 
                property, or an intangible asset, which is not an 
                integral part of an enterprise zone business.
            ``(3) Purchase.--A taxpayer shall be treated as having 
        purchased any property if, but for paragraph (4), the unadjusted 
        basis of such property in the hands of the taxpayer would be its 
        cost (within the meaning of section 1012).
            ``(4) Basis adjustments.--If gain from any sale is not 
        recognized by reason of subsection (a), such gain shall be 
        applied to reduce (in the order acquired) the basis for 
        determining gain or loss of any qualified empowerment zone asset 
        which is purchased by the taxpayer during the 60-day period 
        described in subsection (a). This paragraph shall not apply for 
        purposes of section 1202.
            ``(5) Holding period.--For purposes of determining whether 
        the nonrecognition of gain under subsection (a) applies to any 
        qualified empowerment zone asset which is sold--
                    ``(A) the taxpayer's holding period for such asset 
                and the asset referred to in subsection (a)(1) shall be 
                determined without regard to section 1223, and
                    ``(B) only the first year of the taxpayer's holding 
                period for the asset referred to in subsection (a)(1) 
                shall be taken into account for purposes of paragraphs 
                (2)(A)(iii), (3)(C), and (4)(A)(iii) of section 
                1400F(b).''.

    (b) Conforming Amendments.--
            (1) Paragraph (23) of section 1016(a) is amended--
                    (A) by striking ``or 1045'' and inserting ``1045, or 
                1397B'', and
                    (B) by striking ``or 1045(b)(4)'' and inserting 
                ``1045(b)(4), or 1397B(b)(4)''.
            (2) Paragraph (15) of section 1223 is amended to read as 
        follows:
            ``(15) Except for purposes of sections 1202(a)(2), 
        1202(c)(2)(A), 1400B(b), and 1400F(b), in determining the period 
        for which the taxpayer has held property the acquisition of 
        which resulted under section 1045 or 1397B in the nonrecognition 
        of any part of the gain realized on the sale of other property, 
        there shall be included the period for which such other property 
        has been held as of the date of such sale.''.
            (3) Paragraph (2) of section 1394(b) is amended--
                    (A) by striking ``section 1397C'' and inserting 
                ``section 1397D'', and
                    (B) by striking ``section 1397C(a)(2)'' and 
                inserting ``section 1397D(a)(2)''.
            (4) Paragraph (3) of section 1394(b) is amended--
                    (A) by striking ``section 1397B'' each place it 
                appears and inserting ``section 1397C'', and
                    (B) by striking ``section 1397B(d)'' and inserting 
                ``section 1397C(d)''.
            (5) Sections 1400(e) and 1400B(c) are each amended by 
        striking ``section 1397B'' each place it appears and inserting 
        ``section 1397C''.

[[Page 114 STAT. 2763A-604]]

            (6) The table of subparts for part III of subchapter U of 
        chapter 1 is amended by striking the last item and inserting the 
        following new items:

                ``Subpart C. Nonrecognition of gain on rollover of 
                                empowerment zone investments.
                ``Subpart D. General provisions.''.

            (7) The table of sections for subpart D of such part III is 
        amended to read as follows:

                ``Sec. 1397C. Enterprise zone business defined.
                ``Sec. 1397D. Qualified zone property defined.''.

    (c) Effective Date.--The amendments made by this section shall apply 
to qualified empowerment zone assets acquired after the date of the 
enactment of this Act.

SEC. 117. INCREASED EXCLUSION OF GAIN ON SALE OF EMPOWERMENT ZONE STOCK.

    (a) In General.--Subsection (a) of section 1202 is amended to read 
as follows:
    ``(a) Exclusion.--
            ``(1) In general.--In the case of a taxpayer other than a 
        corporation, gross income shall not include 50 percent of any 
        gain from the sale or exchange of qualified small business stock 
        held for more than 5 years.
            ``(2) Empowerment zone businesses.--
                    ``(A) In general.--In the case of qualified small 
                business stock acquired after the date of the enactment 
                of this paragraph in a corporation which is a qualified 
                business entity (as defined in section 1397C(b)) during 
                substantially all of the taxpayer's holding period for 
                such stock, paragraph (1) shall be applied by 
                substituting `60 percent' for `50 percent'.
                    ``(B) Certain rules to apply.--Rules similar to the 
                rules of paragraphs (5) and (7) of section 1400B(b) 
                shall apply for purposes of this paragraph.
                    ``(C) Gain after 2014 not qualified.--Subparagraph 
                (A) shall not apply to gain attributable to periods 
                after December 31, 2014.
                    ``(D) Treatment of dc zone.--The District of 
                Columbia Enterprise Zone shall not be treated as an 
                empowerment zone for purposes of this paragraph.''.

    (b) Conforming Amendments.--
            (1) Paragraph (8) of section 1(h) is amended by striking 
        ``means'' and all that follows and inserting ``means the excess 
        of--
                    ``(A) the gain which would be excluded from gross 
                income under section 1202 but for the percentage 
                limitation in section 1202(a), over
                    ``(B) the gain excluded from gross income under 
                section 1202.''.
            (2) The section heading for section 1202 is amended by 
        striking ``50-percent'' and inserting ``partial''.
            (3) The table of sections for part I of subchapter P of 
        chapter 1 is amended by striking ``50-percent'' and inserting 
        ``Partial''.

[[Page 114 STAT. 2763A-605]]

    (c) Effective Date.--The amendments made by this section shall apply 
to stock acquired after the date of the enactment of this Act.

                   Subtitle C--New Markets Tax Credit

SEC. 121. NEW MARKETS TAX CREDIT.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
(relating to business-related credits) is amended by adding at the end 
the following new section:

``SEC. 45D. NEW MARKETS TAX CREDIT.

    ``(a) Allowance of Credit.--
            ``(1) In general.--For purposes of section 38, in the case 
        of a taxpayer who holds a qualified equity investment on a 
        credit allowance date of such investment which occurs during the 
        taxable year, the new markets tax credit determined under this 
        section for such taxable year is an amount equal to the 
        applicable percentage of the amount paid to the qualified 
        community development entity for such investment at its original 
        issue.
            ``(2) Applicable percentage.--For purposes of paragraph (1), 
        the applicable percentage is--
                    ``(A) 5 percent with respect to the first 3 credit 
                allowance dates, and
                    ``(B) 6 percent with respect to the remainder of the 
                credit allowance dates.
            ``(3) Credit allowance date.--For purposes of paragraph (1), 
        the term `credit allowance date' means, with respect to any 
        qualified equity investment--
                    ``(A) the date on which such investment is initially 
                made, and
                    ``(B) each of the 6 anniversary dates of such date 
                thereafter.

    ``(b) Qualified Equity Investment.--For purposes of this section--
            ``(1) In general.--The term `qualified equity investment' 
        means any equity investment in a qualified community development 
        entity if--
                    ``(A) such investment is acquired by the taxpayer at 
                its original issue (directly or through an underwriter) 
                solely in exchange for cash,
                    ``(B) substantially all of such cash is used by the 
                qualified community development entity to make qualified 
                low-income community investments, and
                    ``(C) such investment is designated for purposes of 
                this section by the qualified community development 
                entity.
        Such term shall not include any equity investment issued by a 
        qualified community development entity more than 5 years after 
        the date that such entity receives an allocation under 
        subsection (f ). Any allocation not used within such 5-year 
        period may be reallocated by the Secretary under subsection (f 
        ).
            ``(2) Limitation.--The maximum amount of equity investments 
        issued by a qualified community development entity which may be 
        designated under paragraph (1)(C) by such entity

[[Page 114 STAT. 2763A-606]]

        shall not exceed the portion of the limitation amount allocated 
        under subsection (f ) to such entity.
            ``(3) Safe harbor for determining use of cash.--The 
        requirement of paragraph (1)(B) shall be treated as met if at 
        least 85 percent of the aggregate gross assets of the qualified 
        community development entity are invested in qualified low-
        income community investments.
            ``(4) Treatment of subsequent purchasers.--The term 
        `qualified equity investment' includes any equity investment 
        which would (but for paragraph (1)(A)) be a qualified equity 
        investment in the hands of the taxpayer if such investment was a 
        qualified equity investment in the hands of a prior holder.
            ``(5) Redemptions.--A rule similar to the rule of section 
        1202(c)(3) shall apply for purposes of this subsection.
            ``(6) Equity investment.--The term `equity investment' 
        means--
                    ``(A) any stock (other than nonqualified preferred 
                stock as defined in section 351(g)(2)) in an entity 
                which is a corporation, and
                    ``(B) any capital interest in an entity which is a 
                partnership.

    ``(c) Qualified Community Development Entity.--For purposes of this 
section--
            ``(1) In general.--The term `qualified community development 
        entity' means any domestic corporation or partnership if--
                    ``(A) the primary mission of the entity is serving, 
                or providing investment capital for, low-income 
                communities or low-income persons,
                    ``(B) the entity maintains accountability to 
                residents of low-income communities through their 
                representation on any governing board of the entity or 
                on any advisory board to the entity, and
                    ``(C) the entity is certified by the Secretary for 
                purposes of this section as being a qualified community 
                development entity.
            ``(2) Special rules for certain organizations.--The 
        requirements of paragraph (1) shall be treated as met by--
                    ``(A) any specialized small business investment 
                company (as defined in section 1044(c)(3)), and
                    ``(B) any community development financial 
                institution (as defined in section 103 of the Community 
                Development Banking and Financial Institutions Act of 
                1994 (12 U.S.C. 4702)).

    ``(d) Qualified Low-Income Community Investments.--For purposes of 
this section--
            ``(1) In general.--The term `qualified low-income community 
        investment' means--
                    ``(A) any capital or equity investment in, or loan 
                to, any qualified active low-income community business,
                    ``(B) the purchase from another qualified community 
                development entity of any loan made by such entity which 
                is a qualified low-income community investment,
                    ``(C) financial counseling and other services 
                specified in regulations prescribed by the Secretary to 
                businesses located in, and residents of, low-income 
                communities, and

[[Page 114 STAT. 2763A-607]]

                    ``(D) any equity investment in, or loan to, any 
                qualified community development entity.
            ``(2) Qualified active low-income community business.--
                    ``(A) In general.--For purposes of paragraph (1), 
                the term `qualified active low-income community 
                business' means, with respect to any taxable year, any 
                corporation (including a nonprofit corporation) or 
                partnership if for such year--
                          ``(i) at least 50 percent of the total gross 
                      income of such entity is derived from the active 
                      conduct of a qualified business within any low-
                      income community,
                          ``(ii) a substantial portion of the use of the 
                      tangible property of such entity (whether owned or 
                      leased) is within any low-income community,
                          ``(iii) a substantial portion of the services 
                      performed for such entity by its employees are 
                      performed in any low-income community,
                          ``(iv) less than 5 percent of the average of 
                      the aggregate unadjusted bases of the property of 
                      such entity is attributable to collectibles (as 
                      defined in section 408(m)(2)) other than 
                      collectibles that are held primarily for sale to 
                      customers in the ordinary course of such business, 
                      and
                          ``(v) less than 5 percent of the average of 
                      the aggregate unadjusted bases of the property of 
                      such entity is attributable to nonqualified 
                      financial property (as defined in section 
                      1397C(e)).
                    ``(B) Proprietorship.--Such term shall include any 
                business carried on by an individual as a proprietor if 
                such business would meet the requirements of 
                subparagraph (A) were it incorporated.
                    ``(C) Portions of business may be qualified active 
                low-income community business.--The term `qualified 
                active low-income community business' includes any 
                trades or businesses which would qualify as a qualified 
                active low-income community business if such trades or 
                businesses were separately incorporated.
            ``(3) Qualified business.--For purposes of this subsection, 
        the term `qualified business' has the meaning given to such term 
        by section 1397C(d); except that--
                    ``(A) in lieu of applying paragraph (2)(B) thereof, 
                the rental to others of real property located in any 
                low-income community shall be treated as a qualified 
                business if there are substantial improvements located 
                on such property, and
                    ``(B) paragraph (3) thereof shall not apply.

    ``(e) Low-Income Community.--For purposes of this section--
            ``(1) In general.--The term `low-income community' means any 
        population census tract if--
                    ``(A) the poverty rate for such tract is at least 20 
                percent, or
                    ``(B)(i) in the case of a tract not located within a 
                metropolitan area, the median family income for such 
                tract does not exceed 80 percent of statewide median 
                family income, or

[[Page 114 STAT. 2763A-608]]

                    ``(ii) in the case of a tract located within a 
                metropolitan area, the median family income for such 
                tract does not exceed 80 percent of the greater of 
                statewide median family income or the metropolitan area 
                median family income.
        Subparagraph (B) shall be applied using possessionwide median 
        family income in the case of census tracts located within a 
        possession of the United States.
            ``(2) Targeted areas.--The Secretary may designate any area 
        within any census tract as a low-income community if--
                    ``(A) the boundary of such area is continuous,
                    ``(B) the area would satisfy the requirements of 
                paragraph (1) if it were a census tract, and
                    ``(C) an inadequate access to investment capital 
                exists in such area.
            ``(3) Areas not within census tracts.--In the case of an 
        area which is not tracted for population census tracts, the 
        equivalent county divisions (as defined by the Bureau of the 
        Census for purposes of defining poverty areas) shall be used for 
        purposes of determining poverty rates and median family income.

    ``(f ) National Limitation on Amount of Investments Designated.--
            ``(1) In general.--There is a new markets tax credit 
        limitation for each calendar year. Such limitation is--
                    ``(A) $1,000,000,000 for 2001,
                    ``(B) $1,500,000,000 for 2002 and 2003,
                    ``(C) $2,000,000,000 for 2004 and 2005, and
                    ``(D) $3,500,000,000 for 2006 and 2007.
            ``(2) Allocation of limitation.--The limitation under 
        paragraph (1) shall be allocated by the Secretary among 
        qualified community development entities selected by the 
        Secretary. In making allocations under the preceding sentence, 
        the Secretary shall give priority to any entity--
                    ``(A) with a record of having successfully provided 
                capital or technical assistance to disadvantaged 
                businesses or communities, or
                    ``(B) which intends to satisfy the requirement under 
                subsection (b)(1)(B) by making qualified low-income 
                community investments in 1 or more businesses in which 
                persons unrelated to such entity (within the meaning of 
                section 267(b) or 707(b)(1)) hold the majority equity 
                interest.
            ``(3) Carryover of unused limitation.--If the new markets 
        tax credit limitation for any calendar year exceeds the 
        aggregate amount allocated under paragraph (2) for such year, 
        such limitation for the succeeding calendar year shall be 
        increased by the amount of such excess. No amount may be carried 
        under the preceding sentence to any calendar year after 2014.

    ``(g) Recapture of Credit In Certain Cases.--
            ``(1) In general.--If, at any time during the 7-year period 
        beginning on the date of the original issue of a qualified 
        equity investment in a qualified community development entity, 
        there is a recapture event with respect to such investment, then 
        the tax imposed by this chapter for the taxable year in which 
        such event occurs shall be increased by the credit recapture 
        amount.

[[Page 114 STAT. 2763A-609]]

            ``(2) Credit recapture amount.--For purposes of paragraph 
        (1), the credit recapture amount is an amount equal to the sum 
        of--
                    ``(A) the aggregate decrease in the credits allowed 
                to the taxpayer under section 38 for all prior taxable 
                years which would have resulted if no credit had been 
                determined under this section with respect to such 
                investment, plus
                    ``(B) interest at the underpayment rate established 
                under section 6621 on the amount determined under 
                subparagraph (A) for each prior taxable year for the 
                period beginning on the due date for filing the return 
                for the prior taxable year involved.
        No deduction shall be allowed under this chapter for interest 
        described in subparagraph (B).
            ``(3) Recapture event.--For purposes of paragraph (1), there 
        is a recapture event with respect to an equity investment in a 
        qualified community development entity if--
                    ``(A) such entity ceases to be a qualified community 
                development entity,
                    ``(B) the proceeds of the investment cease to be 
                used as required of subsection (b)(1)(B), or
                    ``(C) such investment is redeemed by such entity.
            ``(4) Special rules.--
                    ``(A) Tax benefit rule.--The tax for the taxable 
                year shall be increased under paragraph (1) only with 
                respect to credits allowed by reason of this section 
                which were used to reduce tax liability. In the case of 
                credits not so used to reduce tax liability, the 
                carryforwards and carrybacks under section 39 shall be 
                appropriately adjusted.
                    ``(B) No credits against tax.--Any increase in tax 
                under this subsection shall not be treated as a tax 
                imposed by this chapter for purposes of determining the 
                amount of any credit under this chapter or for purposes 
                of section 55.

    ``(h) Basis Reduction.--The basis of any qualified equity investment 
shall be reduced by the amount of any credit determined under this 
section with respect to such investment. This subsection shall not apply 
for purposes of sections 1202, 1400B, and 1400F.
    ``(i) Regulations.--The Secretary shall prescribe such regulations 
as may be appropriate to carry out this section, including regulations--
            ``(1) which limit the credit for investments which are 
        directly or indirectly subsidized by other Federal tax benefits 
        (including the credit under section 42 and the exclusion from 
        gross income under section 103),
            ``(2) which prevent the abuse of the purposes of this 
        section,
            ``(3) which provide rules for determining whether the 
        requirement of subsection (b)(1)(B) is treated as met,
            ``(4) which impose appropriate reporting requirements, and
            ``(5) which apply the provisions of this section to newly 
        formed entities.''.

    (b) Credit Made Part of General Business Credit.--
            (1) In general.--Subsection (b) of section 38 is amended by 
        striking ``plus'' at the end of paragraph (11), by striking the 
        period at the end of paragraph (12) and inserting ``, plus'', 
        and by adding at the end the following new paragraph:

[[Page 114 STAT. 2763A-610]]

            ``(13) the new markets tax credit determined under section 
        45D(a).''.
            (2) Limitation on carryback.--Subsection (d) of section 39 
        is amended by adding at the end the following new paragraph:
            ``(9) No carryback of new markets tax credit before january 
        1, 2001.--No portion of the unused business credit for any 
        taxable year which is attributable to the credit under section 
        45D may be carried back to a taxable year ending before January 
        1, 2001.''.

    (c) Deduction for Unused Credit.--Subsection (c) of section 196 is 
amended by striking ``and'' at the end of paragraph (7), by striking the 
period at the end of paragraph (8) and inserting ``, and'', and by 
adding at the end the following new paragraph:
            ``(9) the new markets tax credit determined under section 
        45D(a).''.

    (d) Clerical Amendment.--The table of sections for subpart D of part 
IV of subchapter A of chapter 1 is amended by adding at the end the 
following new item:

                ``Sec. 45D. New markets tax credit.''.

    (e) Effective Date.--The amendments made by this section shall apply 
to investments made after December 31, 2000.
    (f ) Guidance on Allocation of National Limitation.--Not later than 
120 days after the date of the enactment of this Act, the Secretary of 
the Treasury or the Secretary's delegate shall issue guidance which 
specifies--
            (1) how entities shall apply for an allocation under section 
        45D(f )(2) of the Internal Revenue Code of 1986, as added by 
        this section;
            (2) the competitive procedure through which such allocations 
        are made; and
            (3) the actions that such Secretary or delegate shall take 
        to ensure that such allocations are properly made to appropriate 
        entities.

    (g) Audit and Report.--Not later than January 31 of 2004, 2007, and 
2010, the Comptroller General of the United States shall, pursuant to an 
audit of the new markets tax credit program established under section 
45D of the Internal Revenue Code of 1986 (as added by subsection (a)), 
report to Congress on such program, including all qualified community 
development entities that receive an allocation under the new markets 
credit under such section.

          Subtitle D--Improvements in Low-Income Housing Credit

SEC. 131. MODIFICATION OF STATE CEILING ON LOW-INCOME HOUSING CREDIT.

    (a) In General.--Clauses (i) and (ii) of section 42(h)(3)(C) 
(relating to State housing credit ceiling) are amended to read as 
follows:
                          ``(i) the unused State housing credit ceiling 
                      (if any) of such State for the preceding calendar 
                      year,
                          ``(ii) the greater of--

[[Page 114 STAT. 2763A-611]]

                                    ``(I) $1.75 ($1.50 for 2001) 
                                multiplied by the State population, or
                                    ``(II) $2,000,000,''.

    (b) Adjustment of State Ceiling for Increases in Cost-of-Living.--
Paragraph (3) of section 42(h) (relating to housing credit dollar amount 
for agencies) is amended by adding at the end the following new 
subparagraph:
                    ``(H) Cost-of-living adjustment.--
                          ``(i) In general.--In the case of a calendar 
                      year after 2002, the $2,000,000 and $1.75 amounts 
                      in subparagraph (C) shall each be increased by an 
                      amount equal to--
                                    ``(I) such dollar amount, multiplied 
                                by
                                    ``(II) the cost-of-living adjustment 
                                determined under section 1(f )(3) for 
                                such calendar year by substituting 
                                `calendar year 2001' for `calendar year 
                                1992' in subparagraph (B) thereof.
                          ``(ii) Rounding.--
                                    ``(I) In the case of the $2,000,000 
                                amount, any increase under clause (i) 
                                which is not a multiple of $5,000 shall 
                                be rounded to the next lowest multiple 
                                of $5,000.
                                    ``(II) In the case of the $1.75 
                                amount, any increase under clause (i) 
                                which is not a multiple of 5 cents shall 
                                be rounded to the next lowest multiple 
                                of 5 cents.''.

    (c) Conforming Amendments.--
            (1) Section 42(h)(3)(C), as amended by subsection (a), is 
        amended--
                    (A) by striking ``clause (ii)'' in the matter 
                following clause (iv) and inserting ``clause (i)''; and
                    (B) by striking ``clauses (i)'' in the matter 
                following clause (iv) and inserting ``clauses (ii)''.
            (2) Section 42(h)(3)(D)(ii) is amended--
                    (A) by striking ``subparagraph (C)(ii)'' and 
                inserting ``subparagraph (C)(i)''; and
                    (B) by striking ``clauses (i)'' in subclause (II) 
                and inserting ``clauses (ii)''.

    (d) Effective Date.--The amendments made by this section shall apply 
to calendar years after 2000.

SEC. 132. MODIFICATION OF CRITERIA FOR ALLOCATING HOUSING CREDITS AMONG 
            PROJECTS.

    (a) Selection Criteria.--Subparagraph (C) of section 42(m)(1) 
(relating to certain selection criteria must be used) is amended--
            (1) by inserting ``, including whether the project includes 
        the use of existing housing as part of a community 
        revitalization plan'' before the comma at the end of clause 
        (iii); and
            (2) by striking clauses (v), (vi), and (vii) and inserting 
        the following new clauses:
                          ``(v) tenant populations with special housing 
                      needs,
                          ``(vi) public housing waiting lists,
                          ``(vii) tenant populations of individuals with 
                      children, and
                          ``(viii) projects intended for eventual tenant 
                      ownership.''.

[[Page 114 STAT. 2763A-612]]

    (b) Preference for Community Revitalization Projects Located in 
Qualified Census Tracts.--Clause (ii) of section 42(m)(1)(B) is amended 
by striking ``and'' at the end of subclause (I), by adding ``and'' at 
the end of subclause (II), and by inserting after subclause (II) the 
following new subclause:
                                    ``(III) projects which are located 
                                in qualified census tracts (as defined 
                                in subsection (d)(5)(C)) and the 
                                development of which contributes to a 
                                concerted community revitalization 
                                plan,''.

SEC. 133. ADDITIONAL RESPONSIBILITIES OF HOUSING CREDIT AGENCIES.

    (a) Market Study; Public Disclosure of Rationale for Not Following 
Credit Allocation Priorities.--Subparagraph (A) of section 42(m)(1) 
(relating to responsibilities of housing credit agencies) is amended by 
striking ``and'' at the end of clause (i), by striking the period at the 
end of clause (ii) and inserting a comma, and by adding at the end the 
following new clauses:
                          ``(iii) a comprehensive market study of the 
                      housing needs of low-income individuals in the 
                      area to be served by the project is conducted 
                      before the credit allocation is made and at the 
                      developer's expense by a disinterested party who 
                      is approved by such agency, and
                          ``(iv) a written explanation is available to 
                      the general public for any allocation of a housing 
                      credit dollar amount which is not made in 
                      accordance with established priorities and 
                      selection criteria of the housing credit 
                      agency.''.

    (b) Site Visits.--Clause (iii) of section 42(m)(1)(B) (relating to 
qualified allocation plan) is amended by inserting before the period 
``and in monitoring for noncompliance with habitability standards 
through regular site visits''.

SEC. 134. MODIFICATIONS TO RULES RELATING TO BASIS OF BUILDING WHICH IS 
            ELIGIBLE FOR CREDIT.

    (a) Adjusted Basis To Include Portion of Certain Buildings Used by 
Low-Income Individuals Who Are Not Tenants and by Project Employees.--
Paragraph (4) of section 42(d) (relating to special rules relating to 
determination of adjusted basis) is amended--
            (1) by striking ``subparagraph (B)'' in subparagraph (A) and 
        inserting ``subparagraphs (B) and (C)'';
            (2) by redesignating subparagraph (C) as subparagraph (D); 
        and
            (3) by inserting after subparagraph (B) the following new 
        subparagraph:
                    ``(C) Inclusion of basis of property used to provide 
                services for certain nontenants.--
                          ``(i) In general.--The adjusted basis of any 
                      building located in a qualified census tract (as 
                      defined in paragraph (5)(C)) shall be determined 
                      by taking into account the adjusted basis of 
                      property (of a character subject to the allowance 
                      for depreciation and not otherwise taken into 
                      account) used throughout the taxable year in 
                      providing any community service facility.
                          ``(ii) Limitation.--The increase in the 
                      adjusted basis of any building which is taken into 
                      account by reason of clause (i) shall not exceed 
                      10 percent of

[[Page 114 STAT. 2763A-613]]

                      the eligible basis of the qualified low-income 
                      housing project of which it is a part. For 
                      purposes of the preceding sentence, all community 
                      service facilities which are part of the same 
                      qualified low-income housing project shall be 
                      treated as one facility.
                          ``(iii) Community service facility.--For 
                      purposes of this subparagraph, the term `community 
                      service facility' means any facility designed to 
                      serve primarily individuals whose income is 60 
                      percent or less of area median income (within the 
                      meaning of subsection (g)(1)(B)).''.

    (b) Certain Native American Housing Assistance Disregarded in 
Determining Whether Building Is Federally Subsidized for Purposes of the 
Low-Income Housing Credit.--Subparagraph (E) of section 42(i)(2) 
(relating to determination of whether building is federally subsidized) 
is amended--
            (1) in clause (i), by inserting ``or the Native American 
        Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 
        4101 et seq.) (as in effect on October 1, 1997)'' after ``this 
        subparagraph)''; and
            (2) in the subparagraph heading, by inserting ``or native 
        american housing assistance'' after ``home assistance''.

SEC. 135. OTHER MODIFICATIONS.

    (a) Allocation of Credit Limit to Certain Buildings.--
            (1) The first sentence of section 42(h)(1)(E)(ii) is amended 
        by striking ``(as of'' the first place it appears and inserting 
        ``(as of the later of the date which is 6 months after the date 
        that the allocation was made or''.
            (2) The last sentence of section 42(h)(3)(C) is amended by 
        striking ``project which'' and inserting ``project which fails 
        to meet the 10 percent test under paragraph (1)(E)(ii) on a date 
        after the close of the calendar year in which the allocation was 
        made or which''.

    (b) Determination of Whether Buildings Are Located in High Cost 
Areas.--The first sentence of section 42(d)(5)(C)(ii)(I) is amended--
            (1) by inserting ``either'' before ``in which 50 percent''; 
        and
            (2) by inserting before the period ``or which has a poverty 
        rate of at least 25 percent''.

SEC. 136. CARRYFORWARD RULES.

    (a) In General.--Clause (ii) of section 42(h)(3)(D) (relating to 
unused housing credit carryovers allocated among certain States) is 
amended by striking ``the excess'' and all that follows and inserting 
``the excess (if any) of--
                                    ``(I) the unused State housing 
                                credit ceiling for the year preceding 
                                such year, over
                                    ``(II) the aggregate housing credit 
                                dollar amount allocated for such 
                                year.''.

    (b) Conforming Amendment.--The second sentence of section 
42(h)(3)(C) (relating to State housing credit ceiling) is amended by 
striking ``clauses (i) and (iii)'' and inserting ``clauses (i) through 
(iv)''.

SEC. 137. EFFECTIVE DATE.

    Except as otherwise provided in this subtitle, the amendments made 
by this subtitle shall apply to--

[[Page 114 STAT. 2763A-614]]

            (1) housing credit dollar amounts allocated after December 
        31, 2000; and
            (2) buildings placed in service after such date to the 
        extent paragraph (1) of section 42(h) of the Internal Revenue 
        Code of 1986 does not apply to any building by reason of 
        paragraph (4) thereof, but only with respect to bonds issued 
        after such date.

     Subtitle E--Other Community Renewal and New Markets Assistance

 PART I--PROVISIONS RELATING TO HOUSING AND SUBSTANCE ABUSE PREVENTION 
                              AND TREATMENT

SEC. 141. TRANSFER OF UNOCCUPIED AND SUBSTANDARD HUD-HELD HOUSING TO 
            LOCAL GOVERNMENTS AND COMMUNITY DEVELOPMENT CORPORATIONS.

    Section 204 of the Departments of Veterans Affairs and Housing and 
Urban Development, and Independent Agencies Appropriations Act, 1997 (12 
U.S.C. 1715z-11a) is amended--
            (1) by striking ``Flexible Authority.--'' and inserting 
        ``Disposition of HUD-Owned Properties. (a) Flexible Authority 
        for Multifamily Projects.--''; and
            (2) by adding at the end the following new subsection:

    ``(b) Transfer of Unoccupied and Substandard Housing to Local 
Governments and Community Development Corporations.--
            ``(1) Transfer authority.--Notwithstanding the authority 
        under subsection (a) and the last sentence of section 204(g) of 
        the National Housing Act (12 U.S.C. 1710(g)), the Secretary of 
        Housing and Urban Development shall transfer ownership of any 
        qualified HUD property, subject to the requirements of this 
        section, to a unit of general local government having 
        jurisdiction for the area in which the property is located or to 
        a community development corporation which operates within such a 
        unit of general local government in accordance with this 
        subsection, but only to the extent that units of general local 
        government and community development corporations consent to 
        transfer and the Secretary determines that such transfer is 
        practicable.
            ``(2) Qualified hud properties.--For purposes of this 
        subsection, the term `qualified HUD property' means any property 
        for which, as of the date that notification of the property is 
        first made under paragraph (3)(B), not less than 6 months have 
        elapsed since the later of the date that the property was 
        acquired by the Secretary or the date that the property was 
        determined to be unoccupied or substandard, that is owned by the 
        Secretary and is--
                    ``(A) an unoccupied multifamily housing project;
                    ``(B) a substandard multifamily housing project; or
                    ``(C) an unoccupied single family property that--
                          ``(i) has been determined by the Secretary not 
                      to be an eligible asset under section 204(h) of 
                      the National Housing Act (12 U.S.C. 1710(h)); or

[[Page 114 STAT. 2763A-615]]

                          ``(ii) is an eligible asset under such section 
                      204(h), but--
                                    ``(I) is not subject to a specific 
                                sale agreement under such section; and
                                    ``(II) has been determined by the 
                                Secretary to be inappropriate for 
                                continued inclusion in the program under 
                                such section 204(h) pursuant to 
                                paragraph (10) of such section.
            ``(3) Timing.--The Secretary shall establish procedures that 
        provide for--
                    ``(A) time deadlines for transfers under this 
                subsection;
                    ``(B) notification to units of general local 
                government and community development corporations of 
                qualified HUD properties in their jurisdictions;
                    ``(C) such units and corporations to express 
                interest in the transfer under this subsection of such 
                properties;
                    ``(D) a right of first refusal for transfer of 
                qualified HUD properties to units of general local 
                government and community development corporations, under 
                which--
                          ``(i) the Secretary shall establish a period 
                      during which the Secretary may not transfer such 
                      properties except to such units and corporations;
                          ``(ii) the Secretary shall offer qualified HUD 
                      properties that are single family properties for 
                      purchase by units of general local government at a 
                      cost of $1 for each property, but only to the 
                      extent that the costs to the Federal Government of 
                      disposal at such price do not exceed the costs to 
                      the Federal Government of disposing of property 
                      subject to the procedures for single family 
                      property established by the Secretary pursuant to 
                      the authority under the last sentence of section 
                      204(g) of the National Housing Act (12 U.S.C. 
                      1710(g));
                          ``(iii) the Secretary may accept an offer to 
                      purchase a property made by a community 
                      development corporation only if the offer provides 
                      for purchase on a cost recovery basis; and
                          ``(iv) the Secretary shall accept an offer to 
                      purchase such a property that is made during such 
                      period by such a unit or corporation and that 
                      complies with the requirements of this paragraph; 
                      and
                    ``(E) a written explanation, to any unit of general 
                local government or community development corporation 
                making an offer to purchase a qualified HUD property 
                under this subsection that is not accepted, of the 
                reason that such offer was not acceptable.
            ``(4) Other disposition.--With respect to any qualified HUD 
        property, if the Secretary does not receive an acceptable offer 
        to purchase the property pursuant to the procedure established 
        under paragraph (3), the Secretary shall dispose of the property 
        to the unit of general local government in which property is 
        located or to community development corporations located in such 
        unit of general local government on a negotiated, competitive 
        bid, or other basis, on such terms as the Secretary deems 
        appropriate.
            ``(5) Satisfaction of indebtedness.--Before transferring 
        ownership of any qualified HUD property pursuant to this

[[Page 114 STAT. 2763A-616]]

        subsection, the Secretary shall satisfy any indebtedness 
        incurred in connection with the property to be transferred, by 
        canceling the indebtedness.
            ``(6) Determination of status of properties.--To ensure 
        compliance with the requirements of this subsection, the 
        Secretary shall take the following actions:
                    ``(A) Upon enactment.--Upon the enactment of this 
                subsection, the Secretary shall promptly assess each 
                residential property owned by the Secretary to determine 
                whether such property is a qualified HUD property.
                    ``(B) Upon acquisition.--Upon acquiring any 
                residential property, the Secretary shall promptly 
                determine whether the property is a qualified HUD 
                property.
                    ``(C) Updates.--The Secretary shall periodically 
                reassess the residential properties owned by the 
                Secretary to determine whether any such properties have 
                become qualified HUD properties.
            ``(7) Tenant leases.--This subsection shall not affect the 
        terms or the enforceability of any contract or lease entered 
        into with respect to any residential property before the date 
        that such property becomes a qualified HUD property.
            ``(8) Use of property.--Property transferred under this 
        subsection shall be used only for appropriate neighborhood 
        revitalization efforts, including homeownership, rental units, 
        commercial space, and parks, consistent with local zoning 
        regulations, local building codes, and subdivision regulations 
        and restrictions of record.
            ``(9) Inapplicability to properties made available for 
        homeless.--Notwithstanding any other provision of this 
        subsection, this subsection shall not apply to any properties 
        that the Secretary determines are to be made available for use 
        by the homeless pursuant to subpart E of part 291 of title 24, 
        Code of Federal Regulations, during the period that the 
        properties are so available.
            ``(10) Protection of existing contracts.--This subsection 
        may not be construed to alter, affect, or annul any legally 
        binding obligations entered into with respect to a qualified HUD 
        property before the property becomes a qualified HUD property.
            ``(11) Definitions.--For purposes of this subsection, the 
        following definitions shall apply:
                    ``(A) Community development corporation.--The term 
                `community development corporation' means a nonprofit 
                organization whose primary purpose is to promote 
                community development by providing housing opportunities 
                for low-income families.
                    ``(B) Cost recovery basis.--The term `cost recovery 
                basis' means, with respect to any sale of a residential 
                property by the Secretary, that the purchase price paid 
                by the purchaser is equal to or greater than the sum of: 
                (i) the appraised value of the property, as determined 
                in accordance with such requirements as the Secretary 
                shall establish; and (ii) the costs incurred by the 
                Secretary in connection with such property during the 
                period beginning on the date on which the Secretary 
                acquires title to the property and ending on the date on 
                which the sale is consummated.

[[Page 114 STAT. 2763A-617]]

                    ``(C) Multifamily housing project.--The term 
                `multifamily housing project' has the meaning given the 
                term in section 203 of the Housing and Community 
                Development Amendments of 1978.
                    ``(D) Residential property.--The term `residential 
                property' means a property that is a multifamily housing 
                project or a single family property.
                    ``(E) Secretary.--The term `Secretary' means the 
                Secretary of Housing and Urban Development.
                    ``(F) Severe physical problems.--The term `severe 
                physical problems' means, with respect to a dwelling 
                unit, that the unit--
                          ``(i) lacks hot or cold piped water, a flush 
                      toilet, or both a bathtub and a shower in the 
                      unit, for the exclusive use of that unit;
                          ``(ii) on not less than three separate 
                      occasions during the preceding winter months, was 
                      uncomfortably cold for a period of more than 6 
                      consecutive hours due to a malfunction of the 
                      heating system for the unit;
                          ``(iii) has no functioning electrical service, 
                      exposed wiring, any room in which there is not a 
                      functioning electrical outlet, or has experienced 
                      three or more blown fuses or tripped circuit 
                      breakers during the preceding 90-day period;
                          ``(iv) is accessible through a public hallway 
                      in which there are no working light fixtures, 
                      loose or missing steps or railings, and no 
                      elevator; or
                          ``(v) has severe maintenance problems, 
                      including water leaks involving the roof, windows, 
                      doors, basement, or pipes or plumbing fixtures, 
                      holes or open cracks in walls or ceilings, severe 
                      paint peeling or broken plaster, and signs of 
                      rodent infestation.
                    ``(G) Single family property.--The term `single 
                family property' means a 1- to 4-family residence.
                    ``(H) Substandard.--The term `substandard' means, 
                with respect to a multifamily housing project, that 25 
                percent or more of the dwelling units in the project 
                have severe physical problems.
                    ``(I) Unit of general local government.--The term 
                `unit of general local government' has the meaning given 
                such term in section 102(a) of the Housing and Community 
                Development Act of 1974.
                    ``(J) Unoccupied.--The term `unoccupied' means, with 
                respect to a residential property, that the unit of 
                general local government having jurisdiction over the 
                area in which the project is located has certified in 
                writing that the property is not inhabited.
            ``(12) Regulations.--
                    ``(A) Interim.--Not later than 30 days after the 
                date of the enactment of this subsection, the Secretary 
                shall issue such interim regulations as are necessary to 
                carry out this subsection.
                    ``(B) Final.--Not later than 60 days after the date 
                of the enactment of this subsection, the Secretary shall 
                issue such final regulations as are necessary to carry 
                out this subsection.''.

[[Page 114 STAT. 2763A-618]]

SEC. 142. TRANSFER OF HUD ASSETS IN REVITALIZATION AREAS.

    In carrying out the program under section 204(h) of the National 
Housing Act (12 U.S.C. 1710(h)), upon the request of the chief executive 
officer of a county or the government of appropriate jurisdiction and 
not later than 60 days after such request is made, the Secretary of 
Housing and Urban Development shall designate as a revitalization area 
all portions of such county that meet the criteria for such designation 
under paragraph (3) of such section.

SEC. 143. RISK-SHARING DEMONSTRATION.

    Section 249 of the National Housing Act (12 U.S.C. 1715z-14) is 
amended--
            (1) by striking the section heading and inserting the 
        following:

                     ``risk-sharing demonstration'';

            (2) by striking ``reinsurance'' each place such term appears 
        and insert ``risk-sharing'';
            (3) in subsection (a)--
                    (A) in the first sentence, by inserting ``and with 
                insured community development financial institutions'' 
                after ``private mortgage insurers'';
                    (B) in the second sentence--
                          (i) by striking ``two'' and inserting 
                      ``four''; and
                          (ii) by striking ``March 15, 1988'' and 
                      inserting ``the expiration of the 5-year period 
                      beginning on the date of the enactment of the 
                      Community Renewal Tax Relief Act of 2000''; and
                    (C) in the third sentence--
                          (i) by striking ``insured'' and inserting 
                      ``for which risk of nonpayment is shared''; and
                          (ii) by striking ``10 percent'' and inserting 
                      ``20 percent'';
            (4) in subsection (b)--
                    (A) in the first sentence--
                          (i) by striking ``to provide'' and inserting 
                      ``, in providing'';
                          (ii) by striking ``through'' and inserting ``, 
                      to enter into''; and
                          (iii) by inserting ``and with insured 
                      community development financial institutions'' 
                      before the period at the end;
                    (B) in the second sentence, by inserting ``and 
                insured community development financial institutions'' 
                after ``private mortgage insurance companies'';
                    (C) by striking paragraph (1) and inserting the 
                following new paragraph:
            ``(1) assume a secondary percentage of loss on any mortgage 
        insured pursuant to section 203(b), 234, or 245 covering a one- 
        to four-family dwelling, which percentage of loss shall be set 
        forth in the risk-sharing contract, with the first percentage of 
        loss to be borne by the Secretary;''; and
                    (D) in paragraph (2)--
                          (i) by striking ``carry out (under appropriate 
                      delegation) such'' and inserting ``perform or 
                      delegate underwriting,'';

[[Page 114 STAT. 2763A-619]]

                          (ii) by striking ``function as the Secretary 
                      pursuant to regulations,'' and inserting 
                      ``functions as the Secretary''; and
                          (iii) by inserting before the period at the 
                      end the following: ``and shall set forth in the 
                      risk-sharing contract'';
            (5) in subsection (c)--
                    (A) in the first sentence--
                          (i) by striking ``of'' the first place it 
                      appears and inserting ``for'';
                          (ii) by inserting ``received by the Secretary 
                      with a private mortgage insurer or insured 
                      community development financial institution'' 
                      after ``sharing of premiums'';
                          (iii) by striking ``insurance reserves'' and 
                      inserting ``loss reserves'';
                          (iv) by striking ``such insurance'' and 
                      inserting ``such risk-sharing contract''; and
                          (v) by striking ``right'' and inserting 
                      ``rights''; and
                    (B) in the second sentence--
                          (i) by inserting ``or insured community 
                      development financial institution'' after 
                      ``private mortgage insurance company''; and
                          (ii) by striking ``for insurance'' and 
                      inserting ``for risk-sharing'';
            (6) in subsection (d), by inserting ``or insured community 
        development financial institution'' after ``private mortgage 
        insurance company''; and
            (7) by adding at the end the following new subsection:

    ``(e) Insured Community Development Financial Institution.--For 
purposes of this section, the term `insured community development 
financial institution' means a community development financial 
institution, as such term is defined in section 103 of Reigle Community 
Development and Regulatory Improvement Act of 1994 (12 U.S.C. 4702) that 
is an insured depository institution (as such term is defined in section 
3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)) or an insured 
credit union (as such term is defined in section 101 of the Federal 
Credit Union Act (12 U.S.C. 1752)).''.

SEC. 144. PREVENTION AND TREATMENT OF SUBSTANCE ABUSE; SERVICES PROVIDED 
            THROUGH RELIGIOUS ORGANIZATIONS.

    Title V of the Public Health Service Act (42 U.S.C. 290aa et seq.) 
is amended by adding at the end the following part:

       ``Part G--Services Provided Through Religious Organizations

``SEC. 581. APPLICABILITY TO DESIGNATED PROGRAMS.

    ``(a) Designated Programs.--Subject to subsection (b), this part 
applies to discretionary and formula grant programs administered by the 
Substance Abuse and Mental Health Services Administration that make 
awards of financial assistance to public or private entities for the 
purpose of carrying out activities to prevent or treat substance abuse 
(in this part referred to as a `designated program'). Designated 
programs include the program under subpart II of part B of title XIX 
(relating to formula grants to the States).

[[Page 114 STAT. 2763A-620]]

    ``(b) Limitation.--This part does not apply to any award of 
financial assistance under a designated program for a purpose other than 
the purpose specified in subsection (a).
    ``(c) Definitions.--For purposes of this part (and subject to 
subsection (b)):
            ``(1) The term `designated program' has the meaning given 
        such term in subsection (a).
            ``(2) The term `financial assistance' means a grant, 
        cooperative agreement, or contract.
            ``(3) The term `program beneficiary' means an individual who 
        receives program services.
            ``(4) The term `program participant' means a public or 
        private entity that has received financial assistance under a 
        designated program.
            ``(5) The term `program services' means treatment for 
        substance abuse, or preventive services regarding such abuse, 
        provided pursuant to an award of financial assistance under a 
        designated program.
            ``(6) The term `religious organization' means a nonprofit 
        religious organization.

``SEC. 582. RELIGIOUS ORGANIZATIONS AS PROGRAM PARTICIPANTS.

    ``(a) In General.--Notwithstanding any other provision of law, a 
religious organization, on the same basis as any other nonprofit private 
provider--
            ``(1) may receive financial assistance under a designated 
        program; and
            ``(2) may be a provider of services under a designated 
        program.

    ``(b) Religious Organizations.--The purpose of this section is to 
allow religious organizations to be program participants on the same 
basis as any other nonprofit private provider without impairing the 
religious character of such organizations, and without diminishing the 
religious freedom of program beneficiaries.
    ``(c) Nondiscrimination Against Religious Organizations.--
            ``(1) Eligibility as program participants.--Religious 
        organizations are eligible to be program participants on the 
        same basis as any other nonprofit private organization as long 
        as the programs are implemented consistent with the 
        Establishment Clause and Free Exercise Clause of the First 
        Amendment to the United States Constitution. Nothing in this Act 
        shall be construed to restrict the ability of the Federal 
        Government, or a State or local government receiving funds under 
        such programs, to apply to religious organizations the same 
        eligibility conditions in designated programs as are applied to 
        any other nonprofit private organization.
            ``(2) Nondiscrimination.--Neither the Federal Government nor 
        a State or local government receiving funds under designated 
        programs shall discriminate against an organization that is or 
        applies to be a program participant on the basis that the 
        organization has a religious character.

    ``(d) Religious Character and Freedom.--
            ``(1) Religious organizations.--Except as provided in this 
        section, any religious organization that is a program 
        participant shall retain its independence from Federal, State, 
        and local

[[Page 114 STAT. 2763A-621]]

        government, including such organization's control over the 
        definition, development, practice, and expression of its 
        religious beliefs.
            ``(2) Additional safeguards.--Neither the Federal Government 
        nor a State shall require a religious organization to--
                    ``(A) alter its form of internal governance; or
                    ``(B) remove religious art, icons, scripture, or 
                other symbols,
        in order to be a program participant.

    ``(e) Employment Practices.--Nothing in this section shall be 
construed to modify or affect the provisions of any other Federal or 
State law or regulation that relates to discrimination in employment. A 
religious organization's exemption provided under section 702 of the 
Civil Rights Act of 1964 regarding employment practices shall not be 
affected by its participation in, or receipt of funds from, a designated 
program.
    ``(f ) Rights of Program Beneficiaries.--
            ``(1) In general.--If an individual who is a program 
        beneficiary or a prospective program beneficiary objects to the 
        religious character of a program participant, within a 
        reasonable period of time after the date of such objection such 
        program participant shall refer such individual to, and the 
        appropriate Federal, State, or local government that administers 
        a designated program or is a program participant shall provide 
        to such individual (if otherwise eligible for such services), 
        program services that--
                    ``(A) are from an alternative provider that is 
                accessible to, and has the capacity to provide such 
                services to, such individual; and
                    ``(B) have a value that is not less than the value 
                of the services that the individual would have received 
                from the program participant to which the individual had 
                such objection.
        Upon referring a program beneficiary to an alternative provider, 
        the program participant shall notify the appropriate Federal, 
        State, or local government agency that administers the program 
        of such referral.
            ``(2) Notices.--Program participants, public agencies that 
        refer individuals to designated programs, and the appropriate 
        Federal, State, or local governments that administer designated 
        programs or are program participants shall ensure that notice is 
        provided to program beneficiaries or prospective program 
        beneficiaries of their rights under this section.
            ``(3) Additional requirements.--A program participant making 
        a referral pursuant to paragraph (1) shall--
                    ``(A) prior to making such referral, consider any 
                list that the State or local government makes available 
                of entities in the geographic area that provide program 
                services; and
                    ``(B) ensure that the individual makes contact with 
                the alternative provider to which the individual is 
                referred.
            ``(4) Nondiscrimination.--A religious organization that is a 
        program participant shall not in providing program services or 
        engaging in outreach activities under designated programs 
        discriminate against a program beneficiary or prospective 
        program beneficiary on the basis of religion or religious 
        belief.

[[Page 114 STAT. 2763A-622]]

    ``(g) Fiscal Accountability.--
            ``(1) In general.--Except as provided in paragraph (2), any 
        religious organization that is a program participant shall be 
        subject to the same regulations as other recipients of awards of 
        Federal financial assistance to account, in accordance with 
        generally accepted auditing principles, for the use of the funds 
        provided under such awards.
            ``(2) Limited audit.--With respect to the award involved, a 
        religious organization that is a program participant shall 
        segregate Federal amounts provided under award into a separate 
        account from non-Federal funds. Only the award funds shall be 
        subject to audit by the government.

    ``(h) Compliance.--With respect to compliance with this section by 
an agency, a religious organization may obtain judicial review of agency 
action in accordance with chapter 7 of title 5, United States Code.

``SEC. 583. LIMITATIONS ON USE OF FUNDS FOR CERTAIN PURPOSES.

    ``No funds provided under a designated program shall be expended for 
sectarian worship, instruction, or proselytization.

``SEC. 584. EDUCATIONAL REQUIREMENTS FOR PERSONNEL IN DRUG TREATMENT 
            PROGRAMS.

    ``(a) Findings.--The Congress finds that--
            ``(1) establishing unduly rigid or uniform educational 
        qualification for counselors and other personnel in drug 
        treatment programs may undermine the effectiveness of such 
        programs; and
            ``(2) such educational requirements for counselors and other 
        personnel may hinder or prevent the provision of needed drug 
        treatment services.

    ``(b) Nondiscrimination.--In determining whether personnel of a 
program participant that has a record of successful drug treatment for 
the preceding three years have satisfied State or local requirements for 
education and training, a State or local government shall not 
discriminate against education and training provided to such personnel 
by a religious organization, so long as such education and training 
includes basic content substantially equivalent to the content provided 
by nonreligious organizations that the State or local government would 
credit for purposes of determining whether the relevant requirements 
have been satisfied.''.

             PART II--ADVISORY COUNCIL ON COMMUNITY RENEWAL

SEC. 151. SHORT TITLE.

    This part may be cited as the ``Advisory Council on Community 
Renewal Act''.

SEC. 152. ESTABLISHMENT.

    There is established an advisory council to be known as the 
``Advisory Council on Community Renewal'' (in this part referred to as 
the ``Advisory Council'').

SEC. 153. DUTIES OF ADVISORY COUNCIL.

    The Advisory Council shall advise the Secretary of Housing and Urban 
Development (in this part referred to as the ``Secretary'')

[[Page 114 STAT. 2763A-623]]

on the designation of renewal communities pursuant to the amendment made 
by section 101 and on the exercise of any other authority granted to the 
Secretary pursuant to the amendments made by this title.

SEC. 154. MEMBERSHIP.

    (a) Number and Appointment.--The Advisory Council shall be composed 
of 7 members appointed by the Secretary.
    (b) Chairperson.--The Chairperson of the Advisory Council (in this 
part referred to as the ``Chairperson'') shall be designated by the 
Secretary at the time of the appointment.
    (c) Terms.--Each member shall be appointed for the life of the 
Advisory Council.
    (d) Basic Pay.--
            (1) Chairperson.--The Chairperson shall be paid at a rate 
        equal to the daily rate of basic pay for level III of the 
        Executive Schedule for each day (including travel time) during 
        which the Chairperson is engaged in the actual performance of 
        duties vested in the Advisory Council.
            (2) Other members.--Members other than the Chairperson shall 
        each be paid at a rate equal to the daily rate of basic pay for 
        level IV of the Executive Schedule for each day (including 
        travel time) during which they are engaged in the actual 
        performance of duties vested in the Advisory Council.

    (e) Travel Expenses.--Each member shall receive travel expenses, 
including per diem in lieu of subsistence, in accordance with applicable 
provisions under subchapter I of chapter 57 of title 5, United States 
Code.
    (f ) Quorum.--Four members of the Advisory Council shall constitute 
a quorum but a lesser number may hold hearings.
    (g) Meetings.--The Advisory Council shall meet at the call of the 
Secretary or the Chairperson.

SEC. 155. POWERS OF ADVISORY COUNCIL.

    (a) Hearings and Sessions.--The Advisory Council may, for the 
purpose of carrying out this part, hold hearings, sit and act at times 
and places, take testimony, and receive evidence as the Advisory Council 
considers appropriate. The Advisory Council may administer oaths or 
affirmations to witnesses appearing before it.
    (b) Powers of Members and Agents.--Any member or agent of the 
Advisory Council may, if authorized by the Advisory Council, take any 
action which the Advisory Council is authorized to take by this section.
    (c) Obtaining Official Data.--The Advisory Council may secure 
directly from any department or agency of the United States information 
necessary to enable it to carry out this part. Upon request of the 
Chairperson of the Advisory Council, the head of that department or 
agency shall furnish that information to the Advisory Council.

SEC. 156. REPORTS.

    (a) Annual Reports.--The Advisory Council shall submit to the 
Secretary an annual report for each fiscal year.
    (b) Interim Reports.--The Advisory Council may submit to the 
Secretary such interim reports as the Advisory Council considers 
appropriate.
    (c) Final Report.--The Advisory Council shall transmit a final 
report to the Secretary not later September 30, 2003. The final

[[Page 114 STAT. 2763A-624]]

report shall contain a detailed statement of the findings and 
conclusions of the Advisory Council, together with any recommendations 
for legislative or administrative action that the Advisory Council 
considers appropriate.

SEC. 157. TERMINATION.

    (a) In General.--The Advisory Council shall terminate 30 days after 
submitting its final report under section 156(c).
    (b) Extension.--Notwithstanding subsection (a), the Secretary may 
postpone the termination of the Advisory Council for a period not to 
exceed 3 years after the Advisory Council submits its final report under 
section 156(c).

SEC. 158. APPLICABILITY OF FEDERAL ADVISORY COMMITTEE ACT.

    The Federal Advisory Committee Act (5 U.S.C. App.) shall not apply 
to the Advisory Council.

SEC. 159. RESOURCES.

    The Secretary shall provide to the Advisory Council appropriate 
resources so that the Advisory Council may carry out its duties and 
fuctions under this part.

SEC. 160. EFFECTIVE DATE.

    This part shall be effective 30 days after the date of its 
enactment.

                      Subtitle F--Other Provisions

SEC. 161. ACCELERATION OF PHASE-IN OF INCREASE IN VOLUME CAP ON PRIVATE 
            ACTIVITY BONDS.

    (a) In General.--Paragraphs (1) and (2) of section 146(d) (relating 
to State ceiling) are amended to read as follows:
            ``(1) In general.--The State ceiling applicable to any State 
        for any calendar year shall be the greater of--
                    ``(A) an amount equal to $75 ($62.50 in the case of 
                calendar year 2001) multiplied by the State population, 
                or
                    ``(B) $225,000,000 ($187,500,000 in the case of 
                calendar year 2001).
            ``(2) Cost-of-living adjustment.--In the case of a calendar 
        year after 2002, each of the dollar amounts contained in 
        paragraph (1) shall be increased by an amount equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the cost-of-living adjustment determined under 
                section 1(f )(3) for such calendar year by substituting 
                `calendar year 2001' for `calendar year 1992' in 
                subparagraph (B) thereof.
        If any increase determined under the preceding sentence is not a 
        multiple of $5 ($5,000 in the case of the dollar amount in 
        paragraph (1)(B)), such increase shall be rounded to the nearest 
        multiple thereof.''.

    (b) Effective Date.--The amendment made by this section shall apply 
to calendar years after 2000.

[[Page 114 STAT. 2763A-625]]

SEC. 162. MODIFICATIONS TO EXPENSING OF ENVIRONMENTAL REMEDIATION COSTS.

    (a) Expensing Not Limited to Sites in Targeted Areas.--Subsection 
(c) of section 198 is amended to read as follows:
    ``(c) Qualified Contaminated Site.--For purposes of this section--
            ``(1) In general.--The term `qualified contaminated site' 
        means any area--
                    ``(A) which is held by the taxpayer for use in a 
                trade or business or for the production of income, or 
                which is property described in section 1221(a)(1) in the 
                hands of the taxpayer, and
                    ``(B) at or on which there has been a release (or 
                threat of release) or disposal of any hazardous 
                substance.
            ``(2) National priorities listed sites not included.--Such 
        term shall not include any site which is on, or proposed for, 
        the national priorities list under section 105(a)(8)(B) of the 
        Comprehensive Environmental Response, Compensation, and 
        Liability Act of 1980 (as in effect on the date of the enactment 
        of this section).
            ``(3) Taxpayer must receive statement from state 
        environmental agency.--An area shall be treated as a qualified 
        contaminated site with respect to expenditures paid or incurred 
        during any taxable year only if the taxpayer receives a 
        statement from the appropriate agency of the State in which such 
        area is located that such area meets the requirement of 
        paragraph (1)(B).
            ``(4) Appropriate state agency.--For purposes of paragraph 
        (3), the chief executive officer of each State may, in 
        consultation with the Administrator of the Environmental 
        Protection Agency, designate the appropriate State environmental 
        agency within 60 days of the date of the enactment of this 
        section. If the chief executive officer of a State has not 
        designated an appropriate environmental agency within such 60-
        day period, the appropriate environmental agency for such State 
        shall be designated by the Administrator of the Environmental 
        Protection Agency.''.

    (b) Extension of Termination Date.--Subsection (h) of section 198 is 
amended by striking ``2001'' and inserting ``2003''.
    (c) Effective Date.--The amendments made by this section shall apply 
to expenditures paid or incurred after the date of the enactment of this 
Act.

SEC. 163. EXTENSION OF DC HOMEBUYER TAX CREDIT.

    Section 1400C(i) (relating to application of section) is amended by 
striking ``2002'' and inserting ``2004''.

SEC. 164. EXTENSION OF DC ZONE THROUGH 2003.

    (a) In General.--The following provisions are amended by striking 
``2002'' each place it appears and inserting ``2003'':
            (1) Section 1400(f ).
            (2) Section 1400A(b).

    (b) Zero Capital Gains Rate.--Section 1400B (relating to zero 
percent capital gains rate) is amended--
            (1) by striking ``2003'' each place it appears and inserting 
        ``2004'', and

[[Page 114 STAT. 2763A-626]]

            (2) by striking ``2007'' each place it appears and inserting 
        ``2008''.

SEC. 165. EXTENSION OF ENHANCED DEDUCTION FOR CORPORATE DONATIONS OF 
            COMPUTER TECHNOLOGY.

    (a) Expansion of Computer Technology Donations to Public 
Libraries.--
            (1) In general.--Paragraph (6) of section 170(e) (relating 
        to special rule for contributions of computer technology and 
        equipment for elementary or secondary school purposes) is 
        amended by striking ``qualified elementary or secondary 
        educational contribution'' each place it occurs in the headings 
        and text and inserting ``qualified computer contribution''.
            (2) Expansion of eligible donees.--Clause (i) of section 
        170(e)(6)(B) (relating to qualified elementary or secondary 
        educational contribution) is amended by striking ``or'' at the 
        end of subclause (I), by adding ``or'' at the end of subclause 
        (II), and by inserting after subclause (II) the following new 
        subclause:
                                    ``(III) a public library (within the 
                                meaning of section 213(2)(A) of the 
                                Library Services and Technology Act (20 
                                U.S.C. 9122(2)(A)), as in effect on the 
                                date of the enactment of the Community 
                                Renewal Tax Relief Act of 2000, 
                                established and maintained by an entity 
                                described in subsection (c)(1),''.
            (3) Extension of donation period.--Clause (ii) of section 
        170(e)(6)(B) is amended by striking ``2 years'' and inserting 
        ``3 years''.

    (b) Conforming Amendments.--
            (1) Section 170(e)(6)(B)(iv) is amended by striking ``in any 
        grades of the K-12''.
            (2) The heading of paragraph (6) of section 170(e) is 
        amended by striking ``elementary or secondary school purposes'' 
        and inserting ``educational purposes''.

    (c) Extension of Deduction.--Section 170(e)(6)(F) (relating to 
termination) is amended by striking ``December 31, 2000'' and inserting 
``December 31, 2003''.
    (d) Standards as to Functionality and Suitability.--Subparagraph (B) 
of section 170(e)(6) is amended by striking ``and'' at the end of clause 
(vi), by striking the period at the end of clause (vii) and inserting 
``, and'', and by adding at the end the following new clause:
                          ``(viii) the property meets such standards, if 
                      any, as the Secretary may prescribe by regulation 
                      to assure that the property meets minimum 
                      functionality and suitability standards for 
                      educational purposes.''.

    (e) Donations of Computers Reacquired by Manufacturer.--Paragraph 
(6) of section 170(e) is further amended by redesignating subparagraphs 
(D), (E), and (F) as subparagraphs (E), (F), and (G), respectively, and 
by inserting after subparagraph (C) the following new subparagraph:
                    ``(D) Donations of property reacquired by 
                manufacturer.--In the case of property which is 
                reacquired by the person who constructed the property--
                          ``(i) subparagraph (B)(ii) shall be applied to 
                      a contribution of such property by such person by 
                      taking

[[Page 114 STAT. 2763A-627]]

                      into account the date that the original 
                      construction of the property was substantially 
                      completed, and
                          ``(ii) subparagraph (B)(iii) shall not apply 
                      to such contribution.''.

    (f ) Effective Date.--The amendments made by this section shall 
apply to contributions made after December 31, 2000.

SEC. 166. TREATMENT OF INDIAN TRIBAL GOVERNMENTS UNDER FEDERAL 
            UNEMPLOYMENT TAX ACT.

    (a) In General.--Section 3306(c)(7) (defining employment) is 
amended--
            (1) by inserting ``or in the employ of an Indian tribe,'' 
        after ``service performed in the employ of a State, or any 
        political subdivision thereof,''; and
            (2) by inserting ``or Indian tribes'' after ``wholly owned 
        by one or more States or political subdivisions''.

    (b) Payments in Lieu of Contributions.--Section 3309 (relating to 
State law coverage of services performed for nonprofit organizations or 
governmental entities) is amended--
            (1) in subsection (a)(2) by inserting ``, including an 
        Indian tribe,'' after ``the State law shall provide that a 
        governmental entity'';
            (2) in subsection (b)(3)(B) by inserting ``, or of an Indian 
        tribe'' after ``of a State or political subdivision thereof'';
            (3) in subsection (b)(3)(E) by inserting ``or tribal'' after 
        ``the State''; and
            (4) in subsection (b)(5) by inserting ``or of an Indian 
        tribe'' after ``an agency of a State or political subdivision 
        thereof''.

    (c) State Law Coverage.--Section 3309 (relating to State law 
coverage of services performed for nonprofit organizations or 
governmental entities) is amended by adding at the end the following new 
subsection:
    ``(d) Election by Indian Tribe.--The State law shall provide that an 
Indian tribe may make contributions for employment as if the employment 
is within the meaning of section 3306 or make payments in lieu of 
contributions under this section, and shall provide that an Indian tribe 
may make separate elections for itself and each subdivision, subsidiary, 
or business enterprise wholly owned by such Indian tribe. State law may 
require a tribe to post a payment bond or take other reasonable measures 
to assure the making of payments in lieu of contributions under this 
section. Notwithstanding the requirements of section 3306(a)(6), if, 
within 90 days of having received a notice of delinquency, a tribe fails 
to make contributions, payments in lieu of contributions, or payment of 
penalties or interest (at amounts or rates comparable to those applied 
to all other employers covered under the State law) assessed with 
respect to such failure, or if the tribe fails to post a required 
payment bond, then service for the tribe shall not be excepted from 
employment under section 3306(c)(7) until any such failure is corrected. 
This subsection shall apply to an Indian tribe within the meaning of 
section 4(e) of the Indian Self-Determination and Education Assistance 
Act (25 U.S.C. 450b(e)).''.

    (d) Definitions.--Section 3306 (relating to definitions) is amended 
by adding at the end the following new subsection:
    ``(u) Indian Tribe.--For purposes of this chapter, the term `Indian 
tribe' has the meaning given to such term by section 4(e) of the Indian 
Self-Determination and Education Assistance Act

[[Page 114 STAT. 2763A-628]]

(25 U.S.C. 450b(e)), and includes any subdivision, subsidiary, or 
business enterprise wholly owned by such an Indian tribe.''.
    (e) Effective Date; Transition Rule.--
            (1) Effective date.--The amendments made by this section 
        shall apply to service performed on or after the date of the 
        enactment of this Act.
            (2) Transition rule.--For purposes of the Federal 
        Unemployment Tax Act, service performed in the employ of an 
        Indian tribe (as defined in section 3306(u) of the Internal 
        Revenue Code of 1986 (as added by this section)) shall not be 
        treated as employment (within the meaning of section 3306 of 
        such Code) if--
                    (A) it is service which is performed before the date 
                of the enactment of this Act and with respect to which 
                the tax imposed under the Federal Unemployment Tax Act 
                has not been paid, and
                    (B) such Indian tribe reimburses a State 
                unemployment fund for unemployment benefits paid for 
                service attributable to such tribe for such period.

TITLE II--TWO-YEAR EXTENSION OF AVAILABILITY OF MEDICAL SAVINGS ACCOUNTS

SEC. 201. TWO-YEAR EXTENSION OF AVAILABILITY OF MEDICAL SAVINGS 
            ACCOUNTS.

    (a) In General.--Paragraphs (2) and (3)(B) of section 220(i) 
(defining cut-off year) are each amended by striking ``2000'' each place 
it appears and inserting ``2002''.
    (b) Conforming Amendments.--
            (1) Paragraph (2) of section 220( j) is amended--
                    (A) by striking ``1998 or 1999'' each place it 
                appears and inserting ``1998, 1999, or 2001'',
                    (B) by striking ``600,000 (750,000 in the case of 
                1999)'' and inserting ``750,000 (600,000 in the case of 
                1998)'', and
                    (C) by inserting after subparagraph (B) the 
                following new subparagraph:
                    ``(C) No limitation for 2000.--The numerical 
                limitation shall not apply for 2000.''.
            (2) Subparagraph (A) of section 220( j)(4) is amended by 
        striking ``and 1999'' and inserting ``1999, and 2001''.

    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 202. MEDICAL SAVINGS ACCOUNTS RENAMED AS ARCHER MSAS.

    (a) In General.--The following provisions are amended by striking 
``medical savings account'' each place it appears in the text and 
inserting ``Archer MSA'':
            (1) Section 26(b)(2)(Q).
            (2) Section 106(b).
            (3) Section 138(b).
            (4) Section 220.
            (5) Section 848(e)(1)(B)(iv).
            (6) Subsections (a)(2) and (d) of section 4973.
            (7) Subsections (c)(4) and (e)(1)(D) of section 4975.

[[Page 114 STAT. 2763A-629]]

            (8) Subsections (a) and (d)(2)(B) of section 4980E.
            (9) Section 6051(a)(11).

    (b) Other Amendments.--
            (1) Paragraph (16) of section 62(a) is amended to read as 
        follows:
            ``(16) Archer msas.--The deduction allowed by section 
        220.''.
            (2) The following provisions are each amended by striking 
        ``medical savings accounts'' each place it appears in the text 
        and inserting ``Archer MSAs'':
                    (A) Paragraphs (4) and (7) of section 106(b).
                    (B) Subsections (c)(1)(D), (e)(2), (f )(3)(A), 
                (i)(4)(B), and ( j) of section 220.
                    (C) Section 4973(d).
                    (D) Subsections (b) and (d)(1) of section 4980E.
                    (E) Section 6693(a)(2)(B).
            (3) Paragraph (1) of section 220(d) is amended by inserting 
        ``as a medical savings account'' after ``United States''.
            (4) The heading for section 220(d) is amended by striking 
        ``Medical Savings Account'' and inserting ``Archer MSA''.
            (5) The headings for sections 220(d)(1) and 3231(e)(10) are 
        each amended by striking ``Medical savings account'' and 
        inserting ``Archer msa''.
            (6) The headings for sections 106(b), 138(f ), 220(i), and 
        4973(d) are each amended by striking ``Medical Savings 
        Accounts'' and inserting ``Archer MSAs''.
            (7) The headings for section 220(c)(1)(C) and 4975(c)(4) are 
        each amended by striking ``medical savings accounts'' and 
        inserting ``archer msas''.
            (8) The section heading for section 220 is amended to read 
        as follows:

``SEC. 220. ARCHER MSAS.''.

            (9) The item relating to section 220 in the table of 
        sections for part VII of subchapter B of chapter 1 is amended to 
        read as follows:

                ``Sec. 220. Archer MSAs.''.

            (10) The provisions amended by the preceding provisions of 
        this section are further amended by striking ``a Archer'' each 
        place it appears and inserting ``an Archer''.
            (11) Section 220(e)(1) is further amended by striking ``A 
        Archer'' and inserting ``An Archer''.

           TITLE III--ADMINISTRATIVE AND TECHNICAL PROVISIONS

                  Subtitle A--Administrative Provisions

SEC. 301. EXEMPTION OF CERTAIN REPORTING REQUIREMENTS.

    Section 3003(a)(1) of the Federal Reports Elimination and Sunset Act 
of 1995 (31 U.S.C. 1113 note) shall not apply to any report required to 
be submitted under any of the following provisions of law:
            (1) Section 13031(f ) of the Consolidated Omnibus Budget 
        Reconciliation Act of 1985 (19 U.S.C. 58c(f )).

[[Page 114 STAT. 2763A-630]]

            (2) Section 16(c) of the Foreign Trade Zones Act (19 U.S.C. 
        81p(c)).
            (3) The following provisions of the Tariff Act of 1930:
                    (A) Section 330(c)(1) (19 U.S.C. 1330(c)(1)).
                    (B) Section 607(c) (19 U.S.C. 1607(c)).
            (4) Section 5 of the International Coffee Agreement Act of 
        1980 (19 U.S.C. 1356n).
            (5) Section 351(a)(2) of the Trade Expansion Act of 1962 (19 
        U.S.C. 1981(a)(2)).
            (6) Section 502 of the Automotive Products Trade Act of 1965 
        (19 U.S.C. 2032).
            (7) Section 3131 of the Customs Enforcement Act of 1986 (19 
        U.S.C. 2081).
            (8) The following provisions of the Trade Act of 1974 (19 
        U.S.C. 2101 et seq.):
                    (A) Section 102(b)(4)(A)(ii)(I) (19 U.S.C. 
                2112(b)(4)(A)(ii)(I)).
                    (B) Section 102(e)(1) (19 U.S.C. 2112(e)(1)).
                    (C) Section 102(e)(2) (19 U.S.C. 2112(e)(2)).
                    (D) Section 104(d) (19 U.S.C. 2114(d)).
                    (E) Section 125(e) (19 U.S.C. 2135(e)).
                    (F) Section 135(e)(1) (19 U.S.C. 2155(e)(1)).
                    (G) Section 141(c) (19 U.S.C. 2171(c)).
                    (H) Section 162 (19 U.S.C. 2212).
                    (I) Section 163(b) (19 U.S.C. 2213(b)).
                    (J) Section 163(c) (19 U.S.C. 2213(c)).
                    (K) Section 203(b) (19 U.S.C. 2253(b)).
                    (L) Section 302(b)(2)(C) (19 U.S.C. 2412(b)(2)(C)).
                    (M) Section 303 (19 U.S.C. 2413).
                    (N) Section 309 (19 U.S.C. 2419).
                    (O) Section 407(a) (19 U.S.C. 2437(a)).
                    (P) Section 502(f ) (19 U.S.C. 2462(f )).
                    (Q) Section 504 (19 U.S.C. 2464).
            (9) The following provisions of the Trade Agreements Act of 
        1979 (19 U.S.C. 2501 et seq.):
                    (A) Section 2(b) (19 U.S.C. 2503(b)).
                    (B) Section 3(c) (19 U.S.C. 2504(c)).
                    (C) Section 305(c) (19 U.S.C. 2515(c)).
            (10) Section 303(g)(1) of the Convention on Cultural 
        Property Implementation Act (19 U.S.C. 2602(g)(1)).
            (11) The following provisions of the Caribbean Basin 
        Economic Recovery Act (19 U.S.C. 2701 et seq.):
                    (A) Section 212(a)(1)(A) (19 U.S.C. 2702(a)(1)(A)).
                    (B) Section 212(a)(2) (19 U.S.C. 2702(a)(2)).
            (12) The following provisions of the Omnibus Trade and 
        Competitiveness Act of 1988 (19 U.S.C. 2901 et seq.):
                    (A) Section 1102 (19 U.S.C. 2902).
                    (B) Section 1103 (19 U.S.C. 2903).
                    (C) Section 1206(b) (19 U.S.C. 3006(b)).
            (13) Section 123(a) of the Customs and Trade Act of 1990 
        (Public Law 101-382) (19 U.S.C. 2083).
            (14) Section 243(b)(2) of the Caribbean Basin Economic 
        Recovery Expansion Act of 1990 (Public Law 101-382).
            (15) The following provisions of the Internal Revenue Code 
        of 1986:
                    (A) Section 6103(p)(5).
                    (B) Section 7608.

[[Page 114 STAT. 2763A-631]]

                    (C) Section 7802(f )(3).
                    (D) Section 8022(3).
                    (E) Section 9602(a).
            (16) The following provisions relating to the revenue laws 
        of the United States:
                    (A) Section 1552(c) of the Tax Reform Act of 1986 
                (100 Stat. 2753).
                    (B) Section 231 of the Deficit Reduction Act of 1984 
                (26 U.S.C. 801 note).
                    (C) Section 208 of the Tax Treatment Extension Act 
                of 1977 (26 U.S.C. 911 note).
                    (D) Section 7105 of the Technical and Miscellaneous 
                Revenue Act of 1988 (45 U.S.C. 369).
            (17) Section 4008 of the Employee Retirement Income Security 
        Act of 1974 (29 U.S.C. 1308).
            (18) Section 426 of the Black Lung Benefits Act (30 U.S.C. 
        936(b)).
            (19) Section 7502(g) of title 31, United States Code.
            (20) The following provisions of the Social Security Act:
                    (A) Section 215(i)(2)(C)(i) (42 U.S.C. 
                415(i)(2)(C)(i)).
                    (B) Section 221(i)(2) (42 U.S.C. 421(i)(2)).
                    (C) Section 221(i)(3) (42 U.S.C. 421(i)(3)).
                    (D) Section 233(e)(1) (42 U.S.C. 433(e)(1)).
                    (E) Section 452(a)(10) (42 U.S.C. 652(a)(10)).
                    (F) Section 452(g)(3)(B) (42 U.S.C. 652(g)(3)(B)).
                    (G) Section 506(a)(1) (42 U.S.C. 706(a)).
                    (H) Section 908 (42 U.S.C. 1108).
                    (I) Section 1114(f ) (42 U.S.C. 1314(f )).
                    (J) Section 1120 (42 U.S.C. 1320).
                    (K) Section 1161 (42 U.S.C. 1320c-10).
                    (L) Section 1875(b) (42 U.S.C. 1395ll(b)).
                    (M) Section 1881 (42 U.S.C. 1395rr).
                    (N) Section 1882 (42 U.S.C. 1395ss(f )(2)).
            (21) Section 104(b) of the Social Security Independence and 
        Program Improvements Act of 1994 (42 USC 904 note).
            (22) Section 10 of the Railroad Retirement Act of 1937 (45 
        U.S.C. 231f ).
            (23) The following provisions of the Railroad Retirement Act 
        of 1974:
                    (A) Section 22(a)(1) (45 U.S.C. 231u(a)(1)).
                    (B) Section 22(b)(1) (45 U.S.C. 231u(b)(1)).
            (24) Section 502 of the Railroad Retirement Solvency Act of 
        1983 (45 U.S.C. 231f-1).
            (25) Section 47121(c) of title 49, United States Code.
            (26) The following provisions of the Omnibus Budget 
        Reconciliation Act of 1987 (Public Law 100-203; 101 Stat. 1330-
        182):
                    (A) Section 4007(c)(4) (42 U.S.C. 1395ww note).
                    (B) Section 4079 (42 U.S.C. 1395mm note).
                    (C) Section 4205 (42 U.S.C. 1395i-3 note).
                    (D) Section 4215 (42 U.S.C. 1396r note).
            (27) The following provisions of the Inspector General Act 
        of 1978 (Public Law 95-452):
                    (A) Section 5(b).
                    (B) Section 5(d).
            (28) The following provisions of the Public Health Service 
        Act:

[[Page 114 STAT. 2763A-632]]

                    (A) In section 308(a) (42 U.S.C. 242m(a)), 
                subparagraphs (A), (B), (C), and (D) of paragraph (1).
                    (B) Section 403 (42 U.S.C. 283).
            (29) Section 404 of the Health Services and Centers 
        Amendments of 1978 (42 U.S.C. 242p) (Public Law 95-626).
            (30) The following provisions of the Older Americans Act of 
        1965:
                    (A) Section 206(d) (42 U.S.C. 3017(d)).
                    (B) Section 207 (42 U.S.C. 3018).
            (31) Section 308 of the Age Discrimination Act of 1975 (42 
        U.S.C. 6106a(b)).
            (32) Section 509(c)(3) of the Americans with Disabilities 
        Act 0f 1990 (42 U.S.C. 12209(c)(3)).
            (33) Section 4207(f ) of the Omnibus Budget Reconciliation 
        Act of 1990 (42 U.S.C. 1395b-1 note).

SEC. 302. EXTENSION OF DEADLINES FOR IRS COMPLIANCE WITH CERTAIN NOTICE 
            REQUIREMENTS.

    (a) Annual Installment Agreement Notice.--Section 3506 of the 
Internal Revenue Service Restructuring and Reform Act of 1998 is amended 
by striking ``July 1, 2000'' and inserting ``September 1, 2001''.
    (b) Notice Requirements Relating to Computation of Penalty.--
Subsection (c) of section 3306 of the Internal Revenue Service 
Restructuring and Reform Act of 1998 is amended--
            (1) by striking ``December 31, 2000'' and inserting ``June 
        30, 2001'', and
            (2) by adding at the end the following: ``In the case of any 
        notice of penalty issued after June 30, 2001, and before July 1, 
        2003, the requirements of section 6751(a) of the Internal 
        Revenue Code of 1986 shall be treated as met if such notice 
        contains a telephone number at which the taxpayer can request a 
        copy of the taxpayer's assessment and payment history with 
        respect to such penalty.''.

    (c) Notice Requirements Relating to Interest Imposed.--Subsection 
(c) of section 3308 of the Internal Revenue Service Restructuring and 
Reform Act of 1998 is amended--
            (1) by striking ``December 31, 2000'' and inserting ``June 
        30, 2001'', and
            (2) by adding at the end the following: ``In the case of any 
        notice issued after June 30, 2001, and before July 1, 2003, to 
        which section 6631 of the Internal Revenue Code of 1986 applies, 
        the requirements of section 6631 of such Code shall be treated 
        as met if such notice contains a telephone number at which the 
        taxpayer can request a copy of the taxpayer's payment history 
        relating to interest amounts included in such notice.''.

SEC. 303. EXTENSION OF AUTHORITY FOR UNDERCOVER OPERATIONS.

    Paragraph (6), and the last sentence, of section 7608(c) are each 
amended by striking ``January 1, 2001'' and inserting ``January 1, 
2006''.

SEC. 304. CONFIDENTIALITY OF CERTAIN DOCUMENTS RELATING TO CLOSING AND 
            SIMILAR AGREEMENTS AND TO AGREEMENTS WITH FOREIGN 
            GOVERNMENTS.

    (a) Closing and Similar Agreements Treated As Return Information.--
Paragraph (2) of section 6103(b) (defining return

[[Page 114 STAT. 2763A-633]]

information) is amended by striking ``and'' at the end of subparagraph 
(B), by inserting ``and'' at the end of subparagraph (C), and by 
inserting after subparagraph (C) the following new subparagraph:
                    ``(D) any agreement under section 7121, and any 
                similar agreement, and any background information 
                related to such an agreement or request for such an 
                agreement,''.

    (b) Agreements With Foreign Governments.--
            (1) In general.--Subchapter B of chapter 61 (relating to 
        miscellaneous provisions) is amended by inserting after section 
        6104 the following new section:

``SEC. 6105. CONFIDENTIALITY OF INFORMATION ARISING UNDER TREATY 
            OBLIGATIONS.

    ``(a) In General.--Tax convention information shall not be 
disclosed.
    ``(b) Exceptions.--Subsection (a) shall not apply--
            ``(1) to the disclosure of tax convention information to 
        persons or authorities (including courts and administrative 
        bodies) which are entitled to such disclosure pursuant to a tax 
        convention,
            ``(2) to any generally applicable procedural rules regarding 
        applications for relief under a tax convention, or
            ``(3) in any case not described in paragraphs (1) or (2), to 
        the disclosure of any tax convention information not relating to 
        a particular taxpayer if the Secretary determines, after 
        consultation with each other party to the tax convention, that 
        such disclosure would not impair tax administration.

    ``(c) Definitions.--For purposes of this section--
            ``(1) Tax convention information.--The term `tax convention 
        information' means any--
                    ``(A) agreement entered into with the competent 
                authority of one or more foreign governments pursuant to 
                a tax convention,
                    ``(B) application for relief under a tax convention,
                    ``(C) any background information related to such 
                agreement or application,
                    ``(D) document implementing such agreement, and
                    ``(E) any other information exchanged pursuant to a 
                tax convention which is treated as confidential or 
                secret under the tax convention.
            ``(2) Tax convention.--The term `tax convention' means--
                    ``(A) any income tax or gift and estate tax 
                convention, or
                    ``(B) any other convention or bilateral agreement 
                (including multilateral conventions and agreements and 
                any agreement with a possession of the United States) 
                providing for the avoidance of double taxation, the 
                prevention of fiscal evasion, nondiscrimination with 
                respect to taxes, the exchange of tax relevant 
                information with the United States, or mutual assistance 
                in tax matters.

[[Page 114 STAT. 2763A-634]]

    ``(d) Cross References.--
                  ``For penalties for the unauthorized disclosure of tax 
                convention information which is return or return 
                information, see sections 7213, 7213A, and 7431.''.

            (2) Clerical amendment.--The table of sections for 
        subchapter B of chapter 61 is amended by inserting after the 
        item relating to section 6104 the following new item:

                ``Sec. 6105. Confidentiality of information arising 
                                under treaty obligations.''.

    (c) Exception From Public Inspection as Written Determination.--
            (1) Closing and similar agreements.--Paragraph (1) of 
        section 6110(b) is amended to read as follows:
            ``(1) Written determination.--
                    ``(A) In general.--The term `written determination' 
                means a ruling, determination letter, technical advice 
                memorandum, or Chief Counsel advice.
                    ``(B) Exceptions.--Such term shall not include any 
                matter referred to in subparagraph (C) or (D) of section 
                6103(b)(2).''.
            (2) Agreements with foreign governments.--Paragraph (1) of 
        section 6110(l) is amended by inserting ``or 6105'' after 
        ``6104''.

    (d) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 305. INCREASE IN THRESHOLD FOR JOINT COMMITTEE REPORTS ON REFUNDS 
            AND CREDITS.

    (a) General Rule.--Subsections (a) and (b) of section 6405 are each 
amended by striking ``$1,000,000'' and inserting ``$2,000,000''.
    (b) Effective Date.--The amendment made by subsection (a) shall take 
effect on the date of the enactment of this Act, except that such 
amendment shall not apply with respect to any refund or credit with 
respect to a report that has been made before such date of the enactment 
under section 6405 of the Internal Revenue Code of 1986.

SEC. 306. TREATMENT OF MISSING CHILDREN WITH RESPECT TO CERTAIN TAX 
            BENEFITS.

    (a) In General.--Subsection (c) of section 151 (relating to 
additional exemption for dependents) is amended by adding at the end the 
following new paragraph:
            ``(6) Treatment of missing children.--
                    ``(A) In general.--Solely for the purposes referred 
                to in subparagraph (B), a child of the taxpayer--
                          ``(i) who is presumed by law enforcement 
                      authorities to have been kidnapped by someone who 
                      is not a member of the family of such child or the 
                      taxpayer, and
                          ``(ii) who was (without regard to this 
                      paragraph) the dependent of the taxpayer for the 
                      portion of the taxable year before the date of the 
                      kidnapping,
                shall be treated as a dependent of the taxpayer for all 
                taxable years ending during the period that the child is 
                kidnapped.
                    ``(B) Purposes.--Subparagraph (A) shall apply solely 
                for purposes of determining--

[[Page 114 STAT. 2763A-635]]

                          ``(i) the deduction under this section,
                          ``(ii) the credit under section 24 (relating 
                      to child tax credit), and
                          ``(iii) whether an individual is a surviving 
                      spouse or a head of a household (such terms are 
                      defined in section 2).
                    ``(C) Comparable treatment for earned income 
                credit.--For purposes of section 32, an individual--
                          ``(i) who is presumed by law enforcement 
                      authorities to have been kidnapped by someone who 
                      is not a member of the family of such individual 
                      or the taxpayer, and
                          ``(ii) who had, for the taxable year in which 
                      the kidnapping occurred, the same principal place 
                      of abode as the taxpayer for more than one-half of 
                      the portion of such year before the date of the 
                      kidnapping,
                shall be treated as meeting the requirement of section 
                32(c)(3)(A)(ii) with respect to a taxpayer for all 
                taxable years ending during the period that the 
                individual is kidnapped.
                    ``(D) Termination of treatment.--Subparagraphs (A) 
                and (C) shall cease to apply as of the first taxable 
                year of the taxpayer beginning after the calendar year 
                in which there is a determination that the child is dead 
                (or, if earlier, in which the child would have attained 
                age 18).''.

    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years ending after the date of the enactment of this Act.

SEC. 307. AMENDMENTS TO STATUTES REFERENCING YIELD ON 52-WEEK TREASURY 
            BILLS.

    (a) Amendment to the Act of February 26, 1931.--Section 6 of the Act 
of February 26, 1931 (40 U.S.C. 258e-1) (relating to the interest rate 
on compensation owed for takings of property) is amended--
            (1) in paragraph (1), by striking ``the coupon issue yield 
        equivalent (as determined by the Secretary of the Treasury) of 
        the average accepted auction price for the last auction of 52 
        week United States Treasury bills settled immediately before'' 
        and inserting ``the weekly average 1-year constant maturity 
        Treasury yield, as published by the Board of Governors of the 
        Federal Reserve System, for the calendar week preceding''; and
            (2) in paragraph (2), by striking ``the coupon issue yield 
        equivalent (as determined by the Secretary of the Treasury) of 
        the average accepted auction price for the last auction of 52 
        week United States Treasury bills settled immediately before'' 
        and inserting ``the weekly average 1-year constant maturity 
        Treasury yield, as published by the Board of Governors of the 
        Federal Reserve System, for the calendar week preceding''.

    (b) Amendment to Title 18, United States Code.--Section 3612(f 
)(2)(B) of title 18, United States Code (relating to the interest rate 
on unpaid criminal fines and penalties of more than $2,500) is amended 
by striking ``the coupon issue yield equivalent (as determined by the 
Secretary of the Treasury) of the average accepted auction price for the 
last auction of fifty-two week United States

[[Page 114 STAT. 2763A-636]]

Treasury bills settled before'' and inserting `the weekly average 1-year 
constant maturity Treasury yield, as published by the Board of Governors 
of the Federal Reserve System, for the calendar week preceding.''.
    (c) Amendment to the Internal Revenue Code.--Section 995(f )(4) 
(relating to the interest rate on tax-deferred liability of shareholders 
of domestic international sales corporations) is amended by striking 
``the average investment yield of United States Treasury bills with 
maturities of 52 weeks which were auctioned during the 1-year period'' 
and inserting ``the average of the 1-year constant maturity Treasury 
yields, as published by the Board of Governors of the Federal Reserve 
System, for the 1-year period''.
    (d) Amendments to Title 28, United States Code.--
            (1) Amendment to section 1961.--Section 1961(a) of title 28, 
        United States Code (relating to the interest rate on money 
        judgments in civil cases recovered in Federal district court) is 
        amended by striking ``the coupon issue yield equivalent (as 
        determined by the Secretary of the Treasury) of the average 
        accepted auction price for the last auction of fifty-two week 
        United States Treasury bills settled immediately prior to'' and 
        inserting ``the weekly average 1-year constant maturity Treasury 
        yield, as published by the Board of Governors of the Federal 
        Reserve System, for the calendar week preceding.''.
            (2) Amendment to section 2516.--Section 2516(b) of title 28, 
        United States Code (relating to the interest rate on a judgment 
        against the United States affirmed by the Supreme Court after 
        review on petition of the United States) is amended by striking 
        ``the coupon issue yield equivalent (as determined by the 
        Secretary of the Treasury) of the average accepted auction price 
        for the last auction of fifty-two week United States Treasury 
        bills settled immediately before'' and inserting ``the weekly 
        average 1-year constant maturity Treasury yield, as published by 
        the Board of Governors of the Federal Reserve System, for the 
        calendar week preceding''.

SEC. 308. ADJUSTMENTS FOR CONSUMER PRICE INDEX ERROR.

    (a) Determinations by OMB.--As soon as practicable after the date of 
the enactment of this Act, the Director of the Office of Management and 
Budget shall determine with respect to each applicable Federal benefit 
program whether the CPI computation error for 1999 has or will result in 
a shortfall in payments to beneficiaries under such program (as compared 
to payments that would have been made if the error had not occurred). As 
soon as practicable after the date of the enactment of this Act, but not 
later than 60 days after such date, the Director shall direct the head 
of the Federal agency which administers such program to make a payment 
or payments that, insofar as the Director finds practicable and 
feasible--
            (1) are targeted to the amount of the shortfall experienced 
        by individual beneficiaries, and
            (2) compensate for the shortfall.

    (b) Coordination with Federal Agencies.--As soon as practicable 
after the date of the enactment of this Act, each Federal agency that 
administers an applicable Federal benefit program shall, in accordance 
with such guidelines as are issued by the Director pursuant to this 
section, make an initial determination of whether, and the extent to 
which, the CPI computation error

[[Page 114 STAT. 2763A-637]]

for 1999 has or will result in a shortfall in payments to beneficiaries 
of an applicable Federal benefit program administered by such agency. 
Not later than 30 days after such date, the head of such agency shall 
submit a report to the Director and to each House of the Congress of 
such determination, together with a complete description of the nature 
of the shortfall.
    (c) Implementation Pursuant to Agency Reports.--Upon receipt of the 
report submitted by a Federal agency pursuant to subsection (b), the 
Director shall review the initial determination of the agency, the 
agency's description of the nature of the shortfall, and the 
compensation payments proposed by the agency. Prior to directing payment 
of such payments pursuant to subsection (a), the Director shall make 
appropriate adjustments (if any) in the compensation payments proposed 
by the agency that the Director determines are necessary to comply with 
the requirements of subsection (a) and transmit to the agency a summary 
report of the review, indicating any adjustments made by the Director. 
The agency shall make the compensation payments as directed by the 
Director pursuant to subsection (a) in accordance with the Director's 
summary report.
    (d) Income Disregard Under Federal Means-Tested Benefit Programs.--A 
payment made under this section to compensate for a shortfall in 
benefits shall, in accordance with guidelines issued by the Director 
pursuant to this section, be disregarded in determining income under 
title VIII of the Social Security Act or any applicable Federal benefit 
program that is means-tested.
    (e) Funding.--Funds otherwise available under each applicable 
Federal benefit program for making benefit payments under such program 
are hereby made available for making compensation payments under this 
section in connection with such program.
    (f ) No Judicial Review.--No action taken pursuant to this section 
shall be subject to judicial review.
    (g) Director's Report.--Not later than April 1, 2001, the Director 
shall submit to each House of the Congress a report on the activities 
performed by the Director pursuant to this section.
    (h) Definitions.--For purposes of this section:
            (1) Applicable federal benefit program.--The term 
        ``applicable Federal benefit program'' means any program of the 
        Government of the United States providing for regular or 
        periodic payments or cash assistance paid directly to individual 
        beneficiaries, as determined by the Director of the Office of 
        Management and Budget.
            (2) Federal agency.--The term ``Federal agency'' means a 
        department, agency, or instrumentality of the Government of the 
        United States.
            (3) CPI computation error for 1999.--The term ``CPI 
        computation error for 1999'' means the error in the computation 
        of the Consumer Price Index announced by the Bureau of Labor 
        Statistics on September 28, 2000.

    (i) Tax Provisions.--In the case of taxable years (and other 
periods) beginning after December 31, 2000, if any Consumer Price Index 
(as defined in section 1(f )(5) of the Internal Revenue Code of 1986) 
reflects the CPI computation error for 1999--
            (1) the correct amount of such Index shall (in such manner 
        and to such extent as the Secretary of the Treasury determines 
        to be appropriate) be taken into account for purposes of such 
        Code, and

[[Page 114 STAT. 2763A-638]]

            (2) tables prescribed under section 1(f ) of such Code to 
        reflect such correct amount shall apply in lieu of any tables 
        that were prescribed based on the erroneous amount.

SEC. 309. PREVENTION OF DUPLICATION OF LOSS THROUGH ASSUMPTION OF 
            LIABILITIES GIVING RISE TO A DEDUCTION.

    (a) In General.--Section 358 (relating to basis to distributees) is 
amended by adding at the end the following new subsection:
    ``(h) Special Rules for Assumption of Liabilities To Which 
Subsection (d) Does Not Apply.--
            ``(1) In general.--If, after application of the other 
        provisions of this section to an exchange or series of 
        exchanges, the basis of property to which subsection (a)(1) 
        applies exceeds the fair market value of such property, then 
        such basis shall be reduced (but not below such fair market 
        value) by the amount (determined as of the date of the exchange) 
        of any liability--
                    ``(A) which is assumed in exchange for such 
                property, and
                    ``(B) with respect to which subsection (d)(1) does 
                not apply to the assumption.
            ``(2) Exceptions.--Except as provided by the Secretary, 
        paragraph (1) shall not apply to any liability if--
                    ``(A) the trade or business with which the liability 
                is associated is transferred to the person assuming the 
                liability as part of the exchange, or
                    ``(B) substantially all of the assets with which the 
                liability is associated are transferred to the person 
                assuming the liability as part of the exchange.
            ``(3) Liability.--For purposes of this subsection, the term 
        `liability' shall include any fixed or contingent obligation to 
        make payment, without regard to whether the obligation is 
        otherwise taken into account for purposes of this title.''.

    (b) Determination of Amount of Liability Assumed.--Section 357(d)(1) 
is amended by inserting ``section 358(h),'' after ``section 358(d),''.
    (c) Application of Comparable Rules to Partnerships and S 
Corporations.--The Secretary of the Treasury or his delegate--
            (1) shall prescribe rules which provide appropriate 
        adjustments under subchapter K of chapter 1 of the Internal 
        Revenue Code of 1986 to prevent the acceleration or duplication 
        of losses through the assumption of (or transfer of assets 
        subject to) liabilities described in section 358(h)(3) of such 
        Code (as added by subsection (a)) in transactions involving 
        partnerships, and
            (2) may prescribe rules which provide appropriate 
        adjustments under subchapter S of chapter 1 of such Code in 
        transactions described in paragraph (1) involving S corporations 
        rather than partnerships.

    (d) Effective Dates.--
            (1) In general.--The amendments made by this section shall 
        apply to assumptions of liability after October 18, 1999.
            (2) Rules.--The rules prescribed under subsection (c) shall 
        apply to assumptions of liability after October 18, 1999, or 
        such later date as may be prescribed in such rules.

SEC. 310. DISCLOSURE OF CERTAIN INFORMATION TO CONGRESSIONAL BUDGET 
            OFFICE.

    (a) Disclosure of Certain Tax Information.--

[[Page 114 STAT. 2763A-639]]

            (1) In general.--Subsection ( j) of section 6103 (relating 
        to statistical use) is amended by adding at the end the 
        following new paragraph:
            ``(6) Congressional budget office.--Upon written request by 
        the Director of the Congressional Budget Office, the Secretary 
        shall furnish to officers and employees of the Congressional 
        Budget Office return information for the purpose of, but only to 
        the extent necessary for, long-term models of the social 
        security and medicare programs.''.
            (2) Recordkeeping safeguards.--Section 6103(p) is amended--
                    (A) in paragraph (4)--
                          (i) in the matter preceding subparagraph (A), 
                      by inserting ``the Congressional Budget Office,'' 
                      after ``General Accounting Office,'',
                          (ii) in subparagraph (E), by striking 
                      ``commission or the General Accounting Office'' 
                      and inserting ``commission, the General Accounting 
                      Office, or the Congressional Budget Office'',
                          (iii) in subparagraph (F)(ii), by striking 
                      ``or the General Accounting Office,'' and 
                      inserting ``the General Accounting Office, or the 
                      Congressional Budget Office,'', and
                          (iv) in the matter following subparagraph (F), 
                      by inserting ``or the Congressional Budget 
                      Office'' after ``General Accounting Office'' both 
                      places it appears,
                    (B) in paragraph (5), by striking ``commissions and 
                the General Accounting Office'' and inserting 
                ``commissions, the General Accounting Office, and the 
                Congressional Budget Office'', and
                    (C) in paragraph (6)(A), by inserting ``and the 
                Congressional Budget Office'' after ``commissions''.

    (b) Confidentiality of Records.--
            (1) In general.--Section 203 of the Congressional Budget Act 
        of 1974 (2 U.S.C. 603) is amended by adding at the end the 
        following:

    ``(e) Level of Confidentiality.--With respect to information, data, 
estimates, and statistics obtained under sections 201(d) and 201(e), the 
Director shall maintain the same level of confidentiality as is required 
by law of the department, agency, establishment, or regulatory agency or 
commission from which it is obtained. Officers and employees of the 
Congressional Budget Office shall be subject to the same statutory 
penalties for unauthorized disclosure or use as officers or employees of 
the department, agency, establishment, or regulatory agency or 
commission from which it is obtained.''.
            (2) Conforming amendment.--Subsection (a) of section 203 of 
        such Act is amended by striking ``subsections (c) and (d)'' and 
        inserting ``subsections (c), (d), and (e)''.

                    Subtitle B--Technical Corrections

SEC. 311. AMENDMENTS RELATED TO TICKET TO WORK AND WORK INCENTIVES 
            IMPROVEMENT ACT OF 1999.

    (a) Amendments Related to Section 502 of the Act.--

[[Page 114 STAT. 2763A-640]]

            (1) Section 280C(c)(1) is amended by striking ``or credit'' 
        after ``deduction'' each place it appears.
            (2) Section 30A is amended by redesignating subsections (f ) 
        and (g) as subsections (g) and (h), respectively, and by 
        inserting after subsection (e) the following new subsection:

    ``(f ) Denial of Double Benefit.--Any wages or other expenses taken 
into account in determining the credit under this section may not be 
taken into account in determining the credit under section 41.''.
    (b) Amendment Related to Section 545 of the Act.--Clause (ii) of 
section 857(b)(7)(B) is amended to read as follows:
                          ``(ii) Exception for certain amounts.--Clause 
                      (i) shall not apply to amounts received directly 
                      or indirectly by a real estate investment trust--
                                    ``(I) for services furnished or 
                                rendered by a taxable REIT subsidiary 
                                that are described in paragraph (1)(B) 
                                of section 856(d), or
                                    ``(II) from a taxable REIT 
                                subsidiary that are described in 
                                paragraph (7)(C)(ii) of such section.''.

    (c) Clarification Related to Section 538 of the Act.--The reference 
to section 332(b)(1) of the Internal Revenue Code of 1986 in Treasury 
Regulation section 1.1502-34 shall be deemed to include a reference to 
section 732(f ) of such Code.
    (d) Effective Date.--Subsection (c) and the amendments made by this 
section shall take effect as if included in the provisions of the Ticket 
to Work and Work Incentives Improvement Act of 1999 to which they 
relate.

SEC. 312. AMENDMENTS RELATED TO TAX AND TRADE RELIEF EXTENSION ACT OF 
            1998.

    (a) Amendment Related to Section 1004(b) of the Act.--Subsection (d) 
of section 6104 is amended by adding at the end the following new 
paragraph:
            ``(6) Application to nonexempt charitable trusts and 
        nonexempt private foundations.--The organizations referred to in 
        paragraphs (1) and (2) of section 6033(d) shall comply with the 
        requirements of this subsection relating to annual returns filed 
        under section 6033 in the same manner as the organizations 
        referred to in paragraph (1).''.

    (b) Amendment Related to Section 4003 of the Act.--Subsection (b) of 
section 4003 of the Tax and Trade Relief Extension Act of 1998 is 
amended by inserting ``(7)(A)(i)(II),'' after ``(5)(A)(ii)(I),''.
    (c) Effective Date.--The amendments made by this section shall take 
effect as if included in the provisions of the Tax and Trade Relief 
Extension Act of 1998 to which they relate.

SEC. 313. AMENDMENTS RELATED TO INTERNAL REVENUE SERVICE RESTRUCTURING 
            AND REFORM ACT OF 1998.

    (a) Amendments Related to Innocent Spouse Relief.--
            (1) Election may be made any time after deficiency 
        asserted.--Subparagraph (B) of section 6015(c)(3) is amended by 
        striking ``shall be made'' and inserting ``may be made at any 
        time after a deficiency for such year is asserted but''.
            (2) Clarification regarding disallowance of refunds and 
        credits under section 6015(c).--

[[Page 114 STAT. 2763A-641]]

                    (A) In general.--Section 6015 is amended by 
                redesignating subsection (g) as subsection (h) and by 
                inserting after subsection (f ) the following new 
                subsection:

    ``(g) Credits and Refunds.--
            ``(1) In general.--Except as provided in paragraphs (2) and 
        (3), notwithstanding any other law or rule of law (other than 
        section 6511, 6512(b), 7121, or 7122), credit or refund shall be 
        allowed or made to the extent attributable to the application of 
        this section.
            ``(2) Res judicata.--In the case of any election under 
        subsection (b) or (c), if a decision of a court in any prior 
        proceeding for the same taxable year has become final, such 
        decision shall be conclusive except with respect to the 
        qualification of the individual for relief which was not an 
        issue in such proceeding. The exception contained in the 
        preceding sentence shall not apply if the court determines that 
        the individual participated meaningfully in such prior 
        proceeding.
            ``(3) Credit and refund not allowed under subsection (c).--
        No credit or refund shall be allowed as a result of an election 
        under subsection (c).''.
                    (B) Conforming amendment.--Paragraph (3) of section 
                6015(e) is amended to read as follows:
            ``(3) Limitation on tax court jurisdiction.--If a suit for 
        refund is begun by either individual filing the joint return 
        pursuant to section 6532--
                    ``(A) the Tax Court shall lose jurisdiction of the 
                individual's action under this section to whatever 
                extent jurisdiction is acquired by the district court or 
                the United States Court of Federal Claims over the 
                taxable years that are the subject of the suit for 
                refund, and
                    ``(B) the court acquiring jurisdiction shall have 
                jurisdiction over the petition filed under this 
                subsection.''.
            (3) Clarifications regarding review by tax court.--
                    (A) Paragraph (1) of section 6015(e) is amended in 
                the matter preceding subparagraph (A) by inserting after 
                ``individual'' the following: ``against whom a 
                deficiency has been asserted and''.
                    (B) Subparagraph (A) of section 6015(e)(1) is 
                amended to read as follows:
                    ``(A) In general.--In addition to any other remedy 
                provided by law, the individual may petition the Tax 
                Court (and the Tax Court shall have jurisdiction) to 
                determine the appropriate relief available to the 
                individual under this section if such petition is 
                filed--
                          ``(i) at any time after the earlier of--
                                    ``(I) the date the Secretary mails, 
                                by certified or registered mail to the 
                                taxpayer's last known address, notice of 
                                the Secretary's final determination of 
                                relief available to the individual, or
                                    ``(II) the date which is 6 months 
                                after the date such election is filed 
                                with the Secretary, and
                          ``(ii) not later than the close of the 90th 
                      day after the date described in clause (i)(I).''.
                    (C) Subparagraph (B)(i) of section 6015(e)(1) is 
                amended--
                          (i) by striking ``until the expiration of the 
                      90-day period described in subparagraph (A)'' and 
                      inserting

[[Page 114 STAT. 2763A-642]]

                      ``until the close of the 90th day referred to in 
                      subparagraph (A)(ii)'', and
                          (ii) by inserting ``under subparagraph (A)'' 
                      after ``filed with the Tax Court''.
                    (D)(i) Subsection (e) of section 6015 is amended by 
                adding at the end the following new paragraph:
            ``(5) Waiver.--An individual who elects the application of 
        subsection (b) or (c) (and who agrees with the Secretary's 
        determination of relief ) may waive in writing at any time the 
        restrictions in paragraph (1)(B) with respect to collection of 
        the outstanding assessment (whether or not a notice of the 
        Secretary's final determination of relief has been mailed).''.
                    (ii) Paragraph (2) of section 6015(e) is amended to 
                read as follows:
            ``(2) Suspension of running of period of limitations.--The 
        running of the period of limitations in section 6502 on the 
        collection of the assessment to which the petition under 
        paragraph (1)(A) relates shall be suspended--
                    ``(A) for the period during which the Secretary is 
                prohibited by paragraph (1)(B) from collecting by levy 
                or a proceeding in court and for 60 days thereafter, and
                    ``(B) if a waiver under paragraph (5) is made, from 
                the date the claim for relief was filed until 60 days 
                after the waiver is filed with the Secretary.''.

    (b) Amendments Related to Procedure and Administration.--
            (1) Disputes involving $50,000 or less.--Section 7463 is 
        amended by adding at the end the following new subsection:

    ``(f ) Additional Cases in Which Proceedings May Be Conducted Under 
This Section.--At the option of the taxpayer concurred in by the Tax 
Court or a division thereof before the hearing of the case, proceedings 
may be conducted under this section (in the same manner as a case 
described in subsection (a)) in the case of--
            ``(1) a petition to the Tax Court under section 6015(e) in 
        which the amount of relief sought does not exceed $50,000, and
            ``(2) an appeal under section 6330(d)(1)(A) to the Tax Court 
        of a determination in which the unpaid tax does not exceed 
        $50,000.''.
            (2) Authority to enjoin collection actions.--
                    (A) Section 6330(e)(1) is amended by adding at the 
                end the following: ``Notwithstanding the provisions of 
                section 7421(a), the beginning of a levy or proceeding 
                during the time the suspension under this paragraph is 
                in force may be enjoined by a proceeding in the proper 
                court, including the Tax Court. The Tax Court shall have 
                no jurisdiction under this paragraph to enjoin any 
                action or proceeding unless a timely appeal has been 
                filed under subsection (d)(1) and then only in respect 
                of the unpaid tax or proposed levy to which the 
                determination being appealed relates.''.
                    (B) Section 7421(a) is amended by inserting 
                ``6330(e)(1),'' after ``6246(b),''.
            (3) Clarification.--Paragraph (3) of section 6331(k) is 
        amended by striking ``(3), (4), and (5)'' and inserting ``(3) 
        and (4)''.

[[Page 114 STAT. 2763A-643]]

    (c) Amendment Related to Section 1103 of the Act.--Paragraph (6) of 
section 6103(k) is amended--
            (1) by inserting ``and an officer or employee of the Office 
        of Treasury Inspector General for Tax Administration'' after 
        ``internal revenue officer or employee'', and
            (2) by striking ``internal revenue'' in the heading and 
        inserting ``certain''.

    (d) Amendment Related to Section 3401 of the Act.--Section 
6330(d)(1)(A) is amended by striking ``to hear'' and inserting ``with 
respect to''.
    (e) Amendment Related to Section 3509 of the Act.--Subparagraph (A) 
of section 6110(g)(5) is amended by inserting ``, any Chief Counsel 
advice,'' after ``technical advice memorandum''.
    (f ) Effective Dates.--The amendments made by subsections (a) and 
(b) shall take effect on the date of the enactment of this Act. The 
amendments made by subsections (c), (d), and (e) shall take effect as if 
included in the provisions of the Internal Revenue Service Restructuring 
and Reform Act of 1998 to which they relate.

SEC. 314. AMENDMENTS RELATED TO TAXPAYER RELIEF ACT OF 1997.

    (a) Amendment Related to Section 101 of the Act.--Paragraph (4) of 
section 6211(b) is amended by striking ``sections 32 and 34'' and 
inserting ``sections 24(d), 32, and 34''.
    (b) Amendment Related to Section 302 of the Act.--The last sentence 
of section 3405(e)(1)(B) is amended by inserting ``(other than a Roth 
IRA)'' after ``individual retirement plan''.
    (c) Amendment to Section 311 of the Act.--Paragraph (3) of section 
311(e) of the Taxpayer Relief Act of 1997 (relating to election to 
recognize gain on assets held on January 1, 2001) is amended by adding 
at the end the following new sentence: ``Such an election shall not 
apply to any asset which is disposed of (in a transaction in which gain 
or loss is recognized in whole or in part) before the close of the 1-
year period beginning on the date that the asset would have been treated 
as sold under such election.''.
    (d) Amendment Related to Section 402 of the Act.--The flush sentence 
at the end of clause (ii) of section 56(a)(1)(A) is amended by inserting 
before ``or to any other property'' the following: ``(and the straight 
line method shall be used for such 1250 property)''.
    (e) Amendments Related to Section  1072 of the Act.--
            (1) Clause (ii) of section 415(c)(3)(D) and subparagraph (B) 
        of section 403(b)(3) are each amended by striking ``section 125 
        or'' and inserting ``section 125, 132(f )(4), or''.
            (2) Paragraph (2) of section 414(s) is amended by striking 
        ``section 125, 402(e)(3)'' and inserting ``section 125, 132(f 
        )(4), 402(e)(3)''.

    (f ) Amendment Related to Section  1454 of the Act.--Subsection (a) 
of section 7436 is amended by inserting before the period at the end of 
the first sentence ``and the proper amount of employment tax under such 
determination''.
    (g) Effective Date.--The amendments made by this section shall take 
effect as if included in the provisions of the Taxpayer Relief of 1997 
to which they relate.

SEC. 315. AMENDMENTS RELATED TO BALANCED BUDGET ACT OF 1997.

    (a) Amendments Related to Section  9302 of the Act.--

[[Page 114 STAT. 2763A-644]]

            (1) Paragraph (1) of section 9302( j) of the Balanced Budget 
        Act of 1997 is amended by striking ``tobacco products and 
        cigarette papers and tubes'' and inserting ``cigarettes''.
            (2)(A) Subsection (h) of section 5702 is amended to read as 
        follows:

    ``(h) Manufacturer of Cigarette Papers and Tubes.--`Manufacturer of 
cigarette papers and tubes' means any person who manufactures cigarette 
paper, or makes up cigarette paper into tubes, except for his own 
personal use or consumption.''.
            (B) Section 5702, as amended by subparagraph (A), is amended 
        by striking subsection (f ) and by redesignating subsections (g) 
        through (p) as subsections (f ) through (o), respectively.
            (3) Subsection (c) of section 5761 is amended by adding at 
        the end the following: ``This subsection and section 5754 shall 
        not apply to any person who relands or receives tobacco products 
        in the quantity allowed entry free of tax and duty under chapter 
        98 of the Harmonized Tariff Schedule of the United States, and 
        such person may voluntarily relinquish to the Secretary at the 
        time of entry any excess of such quantity without incurring the 
        penalty under this subsection. No quantity of tobacco products 
        other than the quantity referred to in the preceding sentence 
        may be relanded or received as a personal use quantity.''.

    (b) Effective Date.--The amendments made by this section shall take 
effect as if included in section 9302 of the Balanced Budget Act of 
1997.

SEC. 316. AMENDMENTS RELATED TO SMALL BUSINESS JOB PROTECTION ACT OF 
            1996.

    (a) Amendment Related to Section 1201 of the Act.--Subparagraph (B) 
of section 51(d)(2) is amended--
            (1) by striking ``plan approved'' and inserting ``program 
        funded'', and
            (2) by striking ``(relating to assistance for needy families 
        with minor children)''.

    (b) Amendment Related to Section 1302 of the Act.--Clause (i) of 
section 1361(e)(1)(A) is amended by striking ``or'' before ``(III)'' and 
by adding at the end the following: ``or (IV) an organization described 
in section 170(c)(1) which holds a contingent interest in such trust and 
is not a potential current beneficiary,''.
    (c) Amendment Related to Section 1401 of the Act.--Clause (ii) of 
section 401(k)(10)(B) is amended by adding at the end the following new 
sentence: ``Such term includes a distribution of an annuity contract 
from--
                                    ``(I) a trust which forms a part of 
                                a plan described in section 401(a) and 
                                which is exempt from tax under section 
                                501(a), or
                                    ``(II) an annuity plan described in 
                                section 403(a).''.

    (d) Amendment Related to Section 1427 of the Act.--Clause (ii) of 
section 219(c)(1)(B) is amended by striking ``and'' at the end of 
subclause (I), by redesignating subclause (II) as subclause (III), and 
by inserting after subclause (I) the following new subclause:

[[Page 114 STAT. 2763A-645]]

                                    ``(II) the amount of any designated 
                                nondeductible contribution (as defined 
                                in section 408(o)) on behalf of such 
                                spouse for such taxable year, and''.

    (e) Effective Date.--The amendments made by this section shall take 
effect as if included in the provisions of the Small Business Job 
Protection Act of 1996 to which they relate.

SEC. 317. AMENDMENT RELATED TO REVENUE RECONCILIATION ACT OF 1990.

    (a) Amendment Related to Section 11511 of the Act.--Subparagraph (C) 
of section 43(c)(1) is amended--
            (1) by inserting ``(as defined in section 193(b))'' after 
        ``expenses'', and
            (2) by striking ``under section 193''.

    (b) Effective Date.--The amendment made by this section shall take 
effect as if included in section 11511 of the Revenue Reconciliation Act 
of 1990.

SEC. 318. OTHER TECHNICAL CORRECTIONS.

    (a) Modified Endowment Contracts.--
            (1) Paragraph (2) of section 7702A(a) is amended by 
        inserting ``or this paragraph'' before the period.
            (2) Clause (ii) of section 7702A(c)(3)(A) is amended by 
        striking ``under the contract'' and inserting ``under the old 
        contract''.
            (3) The amendments made by this subsection shall take effect 
        as if included in the amendments made by section 5012 of the 
        Technical and Miscellaneous Revenue Act of 1988.

    (b) Affiliated Corporations in Context of Worthless Securities.--
            (1) Subparagraph (A) of section 165(g)(3) is amended to read 
        as follows:
                    ``(A) the taxpayer owns directly stock in such 
                corporation meeting the requirements of section 
                1504(a)(2), and''.
            (2) Paragraph (3) of section 165(g) is amended by striking 
        the last sentence.
            (3) The amendments made by this subsection shall apply to 
        taxable years beginning after December 31, 1984.

    (c) Certain Annuities Issued by Tax-Exempt Organizations Not Treated 
as Debt Instruments under Original Issue Discount Rules.--
            (1) Clause (ii) of section 1275(a)(1)(B) is amended by 
        striking ``subchapter L'' and inserting ``subchapter L (or by an 
        entity described in section 501(c) and exempt from tax under 
        section 501(a) which would be subject to tax under subchapter L 
        were it not so exempt)''.
            (2) The amendment made by this subsection shall take effect 
        as if included in the amendments made by section 41 of the Tax 
        Reform Act of 1984.

    (d) Tentative Carryback Adjustments of Losses From Section 1256 
Contracts.--
            (1) Subsection (a) of section 6411 is amended by striking 
        ``section 1212(a)(1)'' and inserting ``subsection (a)(1) or (c) 
        of section 1212''.
            (2) The amendment made by paragraph (1) shall take effect as 
        if included in the amendments made by section 504 of the 
        Economic Recovery Tax Act of 1981.

    (e) Correction of Calculation of Amounts to be Deposited in Highway 
Trust Fund.--

[[Page 114 STAT. 2763A-646]]

            (1) Subsection (b) of section 9503 is amended by striking 
        paragraph (5) and redesignating paragraph (6) as paragraph (5).
            (2) The amendment made by paragraph (1) shall apply with 
        respect to taxes received in the Treasury after the date of the 
        enactment of this Act.

    (f ) Expenditures From Vaccine Injury Compensation Trust Fund.--
Section 9510(c)(1)(A) is amended by striking ``December 31, 1999'' and 
inserting ``October 18, 2000''.

SEC. 319. CLERICAL CHANGES.

            (1) Clause (i) of section 45(d)(7)(A) is amended by striking 
        ``paragraph (3)(A)'' and inserting ``subsection (c)(3)(A)''.
            (2) Subsection (f ) of section 67 is amended by striking 
        ``the last sentence'' and inserting ``the second sentence''.
            (3) The heading for paragraph (5) of section 408(d) is 
        amended to read as follows:
            ``(5) Distributions of excess contributions after due date 
        for taxable year and certain excess rollover contributions.--''.
            (4) Paragraph (3) of section 475(g) is amended by striking 
        ``267(b) of'' and inserting ``267(b) or''.
            (5) The heading for subparagraph (B) of section 529(e)(3) is 
        amended by striking ``under guaranteed plans''.
            (6) Clause (iii) of section 530(d)(4)(B) is amended by 
        striking ``; or'' at the end and inserting ``, or''.
            (7) Paragraphs (1)(C) and (2)(C) of section 664(d) are each 
        amended by striking the period after ``subsection (g))''.
            (8)(A) Subsection (e) of section 678 is amended by striking 
        ``an electing small business corporation'' and inserting ``an S 
        corporation''.
            (B) Clause (v) of section 6103(e)(1)(D) is amended to read 
        as follows:
                          ``(v) if the corporation was an S corporation, 
                      any person who was a shareholder during any part 
                      of the period covered by such return during which 
                      an election under section 1362(a) was in effect, 
                      or''.
            (9) Paragraph (7) of section 856(c) is amended by striking 
        ``paragraph (4)(B)(ii)(III)'' and inserting ``paragraph 
        (4)(B)(iii)(III)''
            (10) Subparagraph (A) of section 856(l)(4) is amended by 
        striking ``paragraph (9)(D)(ii)'' and inserting ``subsection 
        (d)(9)(D)(ii)''.
            (11) Subparagraph (B) of section 871(f )(2) is amended by 
        striking ``19 U.S.C.'' and inserting ``(19 U.S.C.''.
            (12) Subparagraph (B) of section 995(b)(3) is amended by 
        striking ``the Military Security Act of 1954 (22 U.S.C. 1934)'' 
        and inserting ``section 38 of the International Security 
        Assistance and Arms Export Control Act of 1976 (22 U.S.C. 
        2778)''.
            (13) Section 1391(g)(3)(C) is amended by striking 
        ``paragraph (1)(B)'' and inserting ``paragraph (1)''.
            (14)(A) Paragraph (2) of section 2035(c) is amended by 
        striking ``paragraph (1)'' and inserting ``subsection (a)''.
            (B) Subsection (d) of section 2035 is amended by inserting 
        ``and paragraph (1) of subsection (c)'' after ``Subsection 
        (a)''.

[[Page 114 STAT. 2763A-647]]

            (15) Paragraph (5) of section 3121(a) is amended by striking 
        the semicolon at the end of subparagraph (G) and inserting a 
        comma.
            (16) Subparagraph (B) of section 4946(c)(3) is amended by 
        striking ``the lowest rate of compensation prescribed for GS-16 
        of the General Schedule under section 5332'' and inserting ``the 
        lowest rate of basic pay for the Senior Executive Service under 
        section 5382''.
            (17) Subsection (p) of section 6103 is amended--
                    (A) in paragraph (4), in the matter preceding 
                subparagraph (A)--
                          (i) by striking the second comma after 
                      ``(13)'', and
                          (ii) by striking ``(7)'' and all that follows 
                      through ``shall, as a condition'' and inserting 
                      ``(7), (8), (9), (12), (15), or (16) or any other 
                      person described in subsection (l)(16) shall, as a 
                      condition'', and
                    (B) in paragraph (4)(F)(ii), by striking the second 
                comma after ``(14)''.
            (18) Paragraph (5) of section 6166(k) is amended by striking 
        ``2035(d)(4)'' and inserting ``2035(c)(2)''.
            (19) Subsection (a) of section 6512 is amended by striking 
        ``; and'' at the end of paragraphs (1), (2), and (5) and 
        inserting ``, and''.
            (20) Paragraph (1) of section 6611(g) is amended by striking 
        the comma after ``(b)(3)''.
            (21) Subparagraphs (A) and (B) of section 6655(e)(5) are 
        amended by striking ``subsections (d)(5) and (l)(3)(B)'' and 
        inserting ``subsection (d)(5)''.
            (22) The subchapter heading for subchapter D of chapter 67 
        is amended by capitalizing the first letter of the second word.
            (23)(A) Section 6724(d)(1)(B) is amended by striking clauses 
        (xiv) through (xvii) and inserting the following:
                          ``(xiv) subparagraph (A) or (C) of subsection 
                      (c)(4) of section 4093 (relating to information 
                      reporting with respect to tax on diesel and 
                      aviation fuels),
                          ``(xv) section 4101(d) (relating to 
                      information reporting with respect to fuels 
                      taxes),
                          ``(xvi) subparagraph (C) of section 338(h)(10) 
                      (relating to information required to be furnished 
                      to the Secretary in case of elective recognition 
                      of gain or loss), or
                          ``(xvii) section 264(f )(5)(A)(iv) (relating 
                      to reporting with respect to certain life 
                      insurance and annuity contracts), and''.
            (B) Section 6010(o)(4)(C) of the Internal Revenue Service 
        Restructuring and Reform Act of 1998 is amended by striking 
        ``inserting `or', and by adding at the end'' and inserting 
        ``inserting `, or', and by adding after subparagraph (Z)''.
            (24) Subsection (a) of section 7421 is amended by striking 
        ``6672(b)'' and inserting ``6672(c)''.
            (25) Paragraph (3) of section 7430(c) is amended--
                    (A) in the paragraph heading, by striking 
                ``Attorneys'' and inserting ``Attorneys' '', and
                    (B) in subparagraph (B), by striking ``attorneys 
                fees'' each place it appears and inserting ``attorneys' 
                fees''.

[[Page 114 STAT. 2763A-648]]

            (26) Paragraph (2) of section 7603(b) is amended by striking 
        the semicolon at the end of subparagraphs (A), (B), (C), (D), 
        (E), (F), and (G) and inserting a comma.
            (27) Clause (ii) of section 7802(b)(2)(B) is amended by 
        striking ``; and'' at the end and inserting ``, and''.
            (28) Paragraph (3) of section 7811(a) is amended by striking 
        ``taxpayer assistance order'' and inserting ``Taxpayer 
        Assistance Order''.
            (29) Paragraph (1) of section 7811(d) is amended by striking 
        ``Ombudsman's'' and inserting ``National Taxpayer Advocate's''.
            (30) Paragraph (3) of section 7872(f ) is amended by 
        striking ``foregoing'' and inserting ``forgoing''.

         TITLE IV--TAX TREATMENT OF SECURITIES FUTURES CONTRACTS

SEC. 401. TAX TREATMENT OF SECURITIES FUTURES CONTRACTS.

    (a) In General.--Subpart IV of subchapter P of chapter 1 (relating 
to special rules for determining gains and losses) is amended by 
inserting after section 1234A the following new section:

``SEC. 1234B. GAINS OR LOSSES FROM SECURITIES FUTURES CONTRACTS.

    ``(a) Treatment of Gain or Loss.--
            ``(1) In general.--Gain or loss attributable to the sale or 
        exchange of a securities futures contract shall be considered 
        gain or loss from the sale or exchange of property which has the 
        same character as the property to which the contract relates has 
        in the hands of the taxpayer (or would have in the hands of the 
        taxpayer if acquired by the taxpayer).
            ``(2) Nonapplication of subsection.--This subsection shall 
        not apply to--
                    ``(A) a contract which constitutes property 
                described in paragraph (1) or (7) of section 1221(a), 
                and
                    ``(B) any income derived in connection with a 
                contract which, without regard to this subsection, is 
                treated as other than gain from the sale or exchange of 
                a capital asset.

    ``(b) Short-Term Gains and Losses.--Except as provided in the 
regulations under section 1092(b) or this section, if gain or loss on 
the sale or exchange of a securities futures contract to sell property 
is considered as gain or loss from the sale or exchange of a capital 
asset, such gain or loss shall be treated as short-term capital gain or 
loss.
    ``(c) Securities Futures Contract.--For purposes of this section, 
the term `securities futures contract' means any security future (as 
defined in section 3(a)(55)(A) of the Securities Exchange Act of 1934, 
as in effect on the date of the enactment of this section).
    ``(d) Contracts Not Treated as Commodity Futures Contracts.--For 
purposes of this title, a securities futures contract shall not be 
treated as a commodity futures contract.
    ``(e) Regulations.--The Secretary shall prescribe such regulations 
as may be appropriate to provide for the proper treatment of securities 
futures contracts under this title.''.
    (b) Terminations, Etc.--Section 1234A is amended--

[[Page 114 STAT. 2763A-649]]

            (1) by inserting ``(other than a securities futures 
        contract, as defined in section 1234B)'' after ``right or 
        obligation'' in paragraph (1),
            (2) by striking ``or'' at the end of paragraph (1),
            (3) by adding ``or'' at the end of paragraph (2), and
            (4) by inserting after paragraph (2) the following new 
        paragraph:
            ``(3) a securities futures contract (as so defined) which is 
        a capital asset in the hands of the taxpayer,''.

    (c) Nonrecognition Under Section 1032.--The second sentence of 
section 1032(a) is amended by inserting ``, or with respect to a 
securities futures contract (as defined in section 1234B),'' after ``an 
option''.
    (d) Treatment Under Wash Sales Rules.--Section 1091 is amended by 
adding at the end the following new subsection:
    ``(f ) Cash Settlement.--This section shall not fail to apply to a 
contract or option to acquire or sell stock or securities solely by 
reason of the fact that the contract or option settles in (or could be 
settled in) cash or property other than such stock or securities.''.
    (e) Treatment Under Straddle Rules.--Clause (i) of section 
1092(d)(3)(B) is amended by striking ``or'' at the end of subclause (I), 
by redesignating subclause (II) as subclause (III), and by inserting 
after subclause (I) the following new subclause:
                                    ``(II) a securities futures contract 
                                (as defined in section 1234B) with 
                                respect to such stock or substantially 
                                identical stock or securities, or''.

    (f ) Treatment Under Short Sales Rules.--Paragraph (2) of section 
1233(e) is amended by striking ``and'' at the end of subparagraph (B), 
by striking the period at the end of subparagraph (C) and inserting ``; 
and'', and by adding at the end the following:
                    ``(D) a securities futures contract (as defined in 
                section 1234B) to acquire substantially identical 
                property shall be treated as substantially identical 
                property.''.

    (g) Treatment Under Section 1256.--
            (1)(A) Subsection (b) of section 1256 is amended by striking 
        ``and'' at the end of paragraph (3), by striking the period at 
        the end of paragraph (4) and inserting ``, and'', and by adding 
        at the end the following:
            ``(5) any dealer securities futures contract.

The term `section 1256 contract' shall not include any securities 
futures contract or option on such a contract unless such contract or 
option is a dealer securities futures contract.''.
            (B) Subsection (g) of section 1256 is amended by adding at 
        the end the following new paragraph:
            ``(9) Dealer securities futures contract.--
                    ``(A) In general.--The term `dealer securities 
                futures contract' means, with respect to any dealer, any 
                securities futures contract, and any option on such a 
                contract, which--
                          ``(i) is entered into by such dealer (or, in 
                      the case of an option, is purchased or granted by 
                      such dealer) in the normal course of his activity 
                      of dealing in such contracts or options, as the 
                      case may be, and
                          ``(ii) is traded on a qualified board or 
                      exchange.
                    ``(B) Dealer.--For purposes of subparagraph (A), a 
                person shall be treated as a dealer in securities 
                futures

[[Page 114 STAT. 2763A-650]]

                contracts or options on such contracts if the Secretary 
                determines that such person performs, with respect to 
                such contracts or options, as the case may be, functions 
                similar to the functions performed by persons described 
                in paragraph (8)(A). Such determination shall be made to 
                the extent appropriate to carry out the purposes of this 
                section.
                    ``(C) Securities futures contract.--The term 
                `securities futures contract' has the meaning given to 
                such term by section 1234B.''.
            (2) Paragraph (4) of section 1256(f ) is amended--
                    (A) by inserting ``, or dealer securities futures 
                contracts,'' after ``dealer equity options'' in the 
                text, and
                    (B) by inserting ``and dealer securities futures 
                contracts'' after ``dealer equity options'' in the 
                heading.
            (3) Paragraph (6) of section 1256(g) is amended to read as 
        follows:
            ``(6) Equity option.--The term `equity option' means any 
        option--
                    ``(A) to buy or sell stock, or
                    ``(B) the value of which is determined directly or 
                indirectly by reference to any stock or any narrow-based 
                security index (as defined in section 3(a)(55) of the 
                Securities Exchange Act of 1934, as in effect on the 
                date of the enactment of this paragraph).
        The term `equity option' includes such an option on a group of 
        stocks only if such group meets the requirements for a narrow-
        based security index (as so defined).''.
            (4) The Secretary of the Treasury or his delegate shall make 
        the determinations under section 1256(g)(9)(B) of the Internal 
        Revenue Code of 1986, as added by this Act, not later than July 
        1, 2001.

    (h) Conforming Amendments.--
            (1) Section 1223 is amended by redesignating paragraph (16) 
        as paragraph (17) and by inserting after paragraph (15) the 
        following new paragraph:
            ``(16) If the security to which a securities futures 
        contract (as defined in section 1234B) relates (other than a 
        contract to which section 1256 applies) is acquired in 
        satisfaction of such contract, in determining the period for 
        which the taxpayer has held such security, there shall be 
        included the period for which the taxpayer held such contract if 
        such contract was a capital asset in the hands of the 
        taxpayer.''.
            (2) The table of sections for subpart IV of subchapter P of 
        chapter 1 is amended by inserting after the item relating to 
        section 1234A the following new item:

                ``Sec. 1234B. Securities futures contracts.''.

    (i) Designation of Contract Markets.--Section 7701 is amended by 
redesignating subsection (m) as subsection (n) and by inserting after 
subsection (l) the following new subsection:
    ``(m) Designation of Contract Markets.--Any designation by the 
Commodity Futures Trading Commission of a contract market which could 
not have been made under the law in effect on the day before the date of 
the enactment of the Commodity Futures Modernization Act of 2000 shall 
apply for purposes of this title except to the extent provided in 
regulations prescribed by the Secretary.''.

[[Page 114 STAT. 2763A-651]]

    ( j) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

[[Page 114 STAT. 2763A-653]]

                          APPENDIX H--H.R. 5663

SECTION 1. NEW MARKETS VENTURE CAPITAL PROGRAM.

    (a) Short Title.--This section may be cited as the ``New Markets 
Venture Capital Program Act of 2000''.
    (b) New Markets Venture Capital Program.--Title III of the Small 
Business Investment Act of 1958 (15 U.S.C. 681 et seq.) is amended--
            (1) in the heading for the title, by striking ``SMALL 
        BUSINESS INVESTMENT COMPANIES''and inserting ``INVESTMENT 
        DIVISION PROGRAMS'';
            (2) by inserting before the heading for section 301 the 
        following:

            ``Part A--Small Business Investment Companies'';

        and
            (3) by adding at the end the following:

              ``Part B--New Markets Venture Capital Program

``SEC. 351. DEFINITIONS.

    ``In this part, the following definitions apply:
            ``(1) Developmental venture capital.--The term 
        `developmental venture capital' means capital in the form of 
        equity capital investments in businesses made with a primary 
        objective of fostering economic development in low-income 
        geographic areas. For the purposes of this paragraph, the term 
        `equity capital' has the same meaning given such term in section 
        303(g)(4).
            ``(2) Low-income individual.--The term `low-income 
        individual' means an individual whose income (adjusted for 
        family size) does not exceed--
                    ``(A) for metropolitan areas, 80 percent of the area 
                median income; and
                    ``(B) for nonmetropolitan areas, the greater of--
                          ``(i) 80 percent of the area median income; or
                          ``(ii) 80 percent of the statewide 
                      nonmetropolitan area median income.
            ``(3) Low-income geographic area.--the term `low-income 
        geographic area' means--
                    ``(A) any population census tract (or in the case of 
                an area that is not tracted for population census 
                tracts, the equivalent county division, as defined by 
                the Bureau of the Census of the Department of Commerce 
                for purposes of defining poverty areas), if--

[[Page 114 STAT. 2763A-654]]

                          ``(i) the poverty rate for that census tract 
                      is not less than 20 percent;
                          ``(ii) in the case of a tract--
                                    ``(I) that is located within a 
                                metropolitan area, 50 percent or more of 
                                the households in that census tract have 
                                an income equal to less than 60 percent 
                                of the area median gross income; or
                                    ``(II) that is not located within a 
                                metropolitan area, the median household 
                                income for such tract does not exceed 80 
                                percent of the statewide median 
                                household income; or
                          ``(iii) as determined by the Administrator 
                      based on objective criteria, a substantial 
                      population of low-income individuals reside, an 
                      inadequate access to investment capital exists, or 
                      other indications of economic distress exist in 
                      that census tract; or
                    ``(B) any area located within--
                          ``(i) a HUBZone (as defined in section 3(p) of 
                      the Small Business Act and the implementing 
                      regulations issued under that section);
                          ``(ii) an urban empowerment zone or urban 
                      enterprise community (as designated by the 
                      Secretary of Housing and Urban Development); or
                          ``(iii) a rural empowerment zone or rural 
                      enterprise community (as designated by the 
                      Secretary of Agriculture).
            ``(4) New markets venture capital company.--The term `New 
        Markets Venture Capital company' means a company that--
                    ``(A) has been granted final approval by the 
                Administrator under section 354(e); and
                    ``(B) has entered into a participation agreement 
                with the Administrator.
            ``(5) Operational assistance.--The term `operational 
        assistance' means management, marketing, and other technical 
        assistance that assists a small business concern with business 
        development.
            ``(6) Participation agreement.--The term `participation 
        agreement' means an agreement, between the Administrator and a 
        company granted final approval under section 354(e), that--
                    ``(A) details the company's operating plan and 
                investment criteria; and
                    ``(B) requires the company to make investments in 
                smaller enterprises at least 80 percent of which are 
                located in low-income geographic areas.
            ``(7) Specialized small business investment company.--The 
        term `specialized small business investment company' means any 
        small business investment company that--
                    ``(A) invests solely in small business concerns that 
                contribute to a well-balanced national economy by 
                facilitating ownership in such concerns by persons whose 
                participation in the free enterprise system is hampered 
                because of social or economic disadvantages;
                    ``(B) is organized or chartered under State business 
                or nonprofit corporations statutes, or formed as a 
                limited partnership; and

[[Page 114 STAT. 2763A-655]]

                    ``(C) was licensed under section 301(d), as in 
                effect before September 30, 1996.
            ``(8) State.--The term `State' means such of the several 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, the Virgin Islands, Guam, American Samoa, the Commonwealth 
        of the Northern Mariana Islands, and any other commonwealth, 
        territory, or possession of the United States.

``SEC. 352. PURPOSES.

    ``The purposes of the New Markets Venture Capital Program 
established under this part are--
            ``(1) to promote economic development and the creation of 
        wealth and job opportunities in low-income geographic areas and 
        among individuals living in such areas by encouraging 
        developmental venture capital investments in smaller enterprises 
        primarily located in such areas; and
            ``(2) to establish a developmental venture capital program, 
        with the mission of addressing the unmet equity investment needs 
        of small enterprises located in low-income geographic areas, to 
        be administered by the Administrator--
                    ``(A) to enter into participation agreements with 
                New Markets Venture Capital companies;
                    ``(B) to guarantee debentures of New Markets Venture 
                Capital companies to enable each such company to make 
                developmental venture capital investments in smaller 
                enterprises in low-income geographic areas; and
                    ``(C) to make grants to New Markets Venture Capital 
                companies, and to other entities, for the purpose of 
                providing operational assistance to smaller enterprises 
                financed, or expected to be financed, by such companies.

``SEC. 353. ESTABLISHMENT.

    ``In accordance with this part, the Administrator shall establish a 
New Markets Venture Capital Program, under which the Administrator may--
            ``(1) enter into participation agreements with companies 
        granted final approval under section 354(e) for the purposes set 
        forth in section 352;
            ``(2) guarantee the debentures issued by New Markets Venture 
        Capital companies as provided in section 355; and
            ``(3) make grants to New Markets Venture Capital companies, 
        and to other entities, under section 358.

``SEC. 354. SELECTION OF NEW MARKETS VENTURE CAPITAL COMPANIES.

    ``(a) Eligibility.--A company shall be eligible to apply to 
participate, as a New Markets Venture Capital company, in the program 
established under this part if--
            ``(1) the company is a newly formed for-profit entity or a 
        newly formed for-profit subsidiary of an existing entity;
            ``(2) the company has a management team with experience in 
        community development financing or relevant venture capital 
        financing; and
            ``(3) the company has a primary objective of economic 
        development of low-income geographic areas.

    ``(b) Application.--To participate, as a New Markets Venture Capital 
company, in the program established under this part a

[[Page 114 STAT. 2763A-656]]

company meeting the eligibility requirements set forth in subsection (a) 
shall submit an application to the Administrator that includes--
            ``(1) a business plan describing how the company intends to 
        make successful developmental venture capital investments in 
        identified low-income geographic areas;
            ``(2) information regarding the community development 
        finance or relevant venture capital qualifications and general 
        reputation of the company's management;
            ``(3) a description of how the company intends to work with 
        community organizations and to seek to address the unmet capital 
        needs of the communities served;
            ``(4) a proposal describing how the company intends to use 
        the grant funds provided under this part to provide operational 
        assistance to smaller enterprises financed by the company, 
        including information regarding whether the company intends to 
        use licensed professionals, when necessary, on the company's 
        staff or from an outside entity;
            ``(5) with respect to binding commitments to be made to the 
        company under this part, an estimate of the ratio of cash to in-
        kind contributions;
            ``(6) a description of the criteria to be used to evaluate 
        whether and to what extent the company meets the objectives of 
        the program established under this part;
            ``(7) information regarding the management and financial 
        strength of any parent firm, affiliated firm, or any other firm 
        essential to the success of the company's business plan; and
            ``(8) such other information as the Administrator may 
        require.

    ``(c) Conditional Approval.--
            ``(1) In general.--From among companies submitting 
        applications under subsection (b), the Administrator shall, in 
        accordance with this subsection, conditionally approval 
        companies to participate in the New Markets Venture Capital 
        Program.
            ``(2) Selection criteria.--In selecting companies under 
        paragraph (1), the Administrator shall consider the following:
                    ``(A) The likelihood that the company will meet the 
                goal of its business plan.
                    ``(B) The experience and background of the company's 
                management team.
                    ``(C) The need for developmental venture capital 
                investments in the geographic areas in which the company 
                intends to invest.
                    ``(D) The extent to which the company will 
                concentrate its activities on serving the geographic 
                areas in which it intends to invest.
                    ``(E) The likelihood that the company will be able 
                to satisfy the conditions under subsection (d).
                    ``(F) The extent to which the activities proposed by 
                the company will expand economic opportunities in the 
                geographic areas in which the company intends to invest.
                    ``(G) The strength of the company's proposal to 
                provide operational assistance under this part as the 
                proposal relates to the ability of the applicant to meet 
                applicable cash requirements and properly utilize in-
                kind contributions, including the use of resources for 
                the services of licensed professionals, when necessary, 
                whether provided

[[Page 114 STAT. 2763A-657]]

                by persons on the company's staff or by persons outside 
                of the company.
                    ``(H) Any other factors deemed appropriate by the 
                Administrator.
            ``(3) Nationwide distribution.--The Administrator shall 
        select companies under paragraph (1) in such a way that promotes 
        investment nationwide.

    ``(d) Requirements To Be Met for Final Approval.--The Administrator 
shall grant each conditionally approved company a period of time, not to 
exceed 2 years, to satisfy the following requirements:
            ``(1) Capital requirement.--Each conditionally approved 
        company shall raise not less than $5,000,000 of private capital 
        or binding capital commitments from one or more investors (other 
        than agencies or departments of the Federal Government) who met 
        criteria established by the Administrator.
            ``(2) Nonadministration resources for operational 
        assistance.--
                    ``(A) In general.--In order to provide operational 
                assistance to smaller enterprises expected to be 
                financed by the company, each conditionally approved 
                company--
                          ``(i) shall have binding commitments (for 
                      contribution in cash or in kind)--
                                    ``(I) from any sources other than 
                                the Small Business Administration that 
                                meet criteria established by the 
                                Administrator;
                                    ``(II) payable or available over a 
                                multiyear period acceptable to the 
                                Administrator (not to exceed 10 years); 
                                and
                                    ``(III) in an amount not less than 
                                30 percent of the total amount of 
                                capital and commitments raised under 
                                paragraph (1);
                          ``(ii) shall have purchased an annuity--
                                    ``(I) from an insurance company 
                                acceptable to the Administrator;
                                    ``(II) using funds (other than the 
                                funds raised under paragraph (1)), from 
                                any source other than the Administrator; 
                                and
                                    ``(III) that yields cash payments 
                                over a multiyear period acceptable to 
                                the Administrator (not to exceed 10 
                                years) in an amount not less than 30 
                                percent of the total amount of capital 
                                and commitments raised under paragraph 
                                (1); or
                          ``(iii) shall have binding commitments (for 
                      contributions in cash or in kind) of the type 
                      described in clause (i) and shall have purchased 
                      an annuity of the type described in clause (ii), 
                      which in the aggregate make available, over a 
                      multiyear period acceptable to the Administrator 
                      (not to exceed 10 years), an amount not less than 
                      30 percent of the total amount of capital and 
                      commitments raised under paragraph (1).
                    ``(B) Exception.--The Administrator may, in the 
                discretion of the Administrator and based upon a showing 
                of special circumstances and good cause, consider an 
                applicant to have satisfied the requirements of 
                subparagraph (A) if the applicant has--

[[Page 114 STAT. 2763A-658]]

                          ``(i) a viable plan that reasonably projects 
                      the capacity of the applicant to raise the amount 
                      (in cash or in-kind) required under subparagraph 
                      (A); and
                          ``(ii) binding commitments in an amount equal 
                      to not less than 20 percent of the total amount 
                      required under paragraph (A).
                    ``(C) Limitation.--In order to comply with the 
                requirements of subparagraphs (A) and (B), the total 
                amount of a company's in-kind contributions may not 
                exceed 50 percent of the company's total contributions.

    ``(e) Final Approval; Designation.--The Administrator shall, with 
respect to each applicant conditionally approved to operate as a New 
Markets Venture Capital company under subsection (c), either--
            ``(1) grant final approval to the applicant to operate as a 
        New Markets Venture Capital company under this part and 
        designate the applicant as such a company, if the applicant--
                    ``(A) satisfies the requirements of subsection (d) 
                on or before the expiration of the time period described 
                in that subsection; and
                    ``(B) enters into a participation agreement with the 
                Administrator; or
            ``(2) if the applicant fails to satisfy the requirements of 
        subsection (d) on or before the expiration of the time period 
        described in that subsection, revoke the conditional approval 
        granted under that subsection.

``SEC. 355. DEBENTURES.

    ``(a) In General.--The Administrator may guarantee the timely 
payment of principal and interest, as scheduled, on debentures issued by 
any New Markets Venture Capital company.
    ``(b) Terms and Conditions.--The Administrator may make guarantees 
under this section on such terms and conditions as it deems appropriate, 
except that the term of any debenture guaranteed under this section 
shall not exceed 15 years.
    ``(c) Full Faith and Credit of the United States.--The full faith 
and credit of the United States is pledged to pay all amounts that may 
be required to be paid under any guarantee under this part.
    ``(d) Maximum Guarantee.--
            ``(1) In general.--Under this section, the Administrator may 
        guarantee the debentures issued by a New Markets Venture Capital 
        company only to be extent that the total face amount of 
        outstanding guaranteed debentures of such company does not 
        exceed 150 percent of the private capital of the company, as 
        determined by the Administrator.
            ``(2) Treatment of certain federal funds.--For the purposes 
        of paragraph (1), private capital shall include capital that is 
        considered to be Federal funds, if such capital is contributed 
        by an investor other than an agency or department of the Federal 
        Government.

``SEC. 356. ISSUANCE AND GUARANTEE OF TRUST CERTIFICATES.

    ``(a) Issuance.--The Administrator may issue trust certificates 
representing ownership of all or a fractional part of debentures issued 
by a New Markets Venture Capital company and guaranteed by the 
Administrator under this part, if such certificates are based

[[Page 114 STAT. 2763A-659]]

on and backed by a trust or pool approved by the Administrator and 
composed solely of guaranteed debentures.
    ``(b) Guarantee.--
            ``(1) In general.--The Administrator may, under such terms 
        and conditions as it deems appropriate, guarantee the timely 
        payment of the principal of and interest on trust certificates 
        issued by the Administrator or its agents for purposes of this 
        section.
            ``(2) Limitation.--Each guarantee under this subsection 
        shall be limited to the extent of principal and interest on the 
        guaranteed debentures that compose the trust or pool.
            ``(3) Prepayment or default.--In the event that a debenture 
        in a trust or pool is prepaid, or in the event of default of 
        such a debenture, the guarantee of timely payment of principal 
        and interest on the trust certificates shall be reduced in 
        proportion to the amount of principal and interest such prepaid 
        debenture represents in the trust or pool. Interest on prepaid 
        or defaulted debentures shall accrue and be guaranteed by the 
        Administrator only through the date of payment of the guarantee. 
        At any time during its term, a trust certificate may be called 
        for redemption due to prepayment or default of all debentures.

    ``(c) Full Faith and Credit of the United States.--The full faith 
and credit of the United States is pledged to pay all amounts that may 
be required to be paid under any guarantee of a trust certificate issued 
by the Administrator or its agents under this section.
    ``(d) Fees.--The Administrator shall not collect a fee for any 
guarantee of a trust certificate under this section, but any agent of 
the Administrator may collect a fee approved by the Administrator for 
the functions described in subsection (f )(2).
    ``(e) Subrogation and Ownership Rights.--
            ``(1) Subrogation.--In the event the Administrator pays a 
        claim under a guarantee issued under this section, it shall be 
        subrogated fully to the rights satisfied by such payment.
            ``(2) Ownership rights.--No Federal, State, or local law 
        shall preclude or limit the exercise by the Administrator of its 
        ownership rights in the debentures residing in a trust or pool 
        against which trust certificates are issued under this section.

    ``(f ) Management and Administration.--
            ``(1) Registration.--The Administrator may provide for a 
        central registration of all trust certificates issued under this 
        section.
            ``(2) Contracting of functions.--
                    ``(A) In general.--The Administrator may contract 
                with an agent or agents to carry out on behalf of the 
                Administrator the pooling and the central registration 
                functions provided for in this section including, 
                notwithstanding any other provision of law--
                          ``(i) maintenance, on behalf of and under the 
                      direction of the Administrator, of such commercial 
                      bank accounts or investments in obligations of the 
                      United States as may be necessary to facilitate 
                      the creation of trusts or pools backed by 
                      debentures guaranteed under this part; and

[[Page 114 STAT. 2763A-660]]

                          ``(ii) the issuance of trust certificates to 
                      facilitate the creation of such trusts or pools.
                    ``(B) Fidelity bond or insurance requirement.--Any 
                agent performing functions on behalf of the 
                Administrator under this paragraph shall provide a 
                fidelity bond or insurance in such amounts as the 
                Administrator determines to be necessary to fully 
                protect the interests of the United States.
            ``(3) Regulation of brokers and dealers.--The Administrator 
        may regulate brokers and dealers in trust certificates issued 
        under this section.
            ``(4) Electronic registration.--Nothing in this subsection 
        may be construed to prohibit the use of a book-entry or other 
        electronic form of registration for trust certificates issued 
        under this section.

``SEC. 357. FEES.

    ``Except as provided in section 356(d), the Administrator may charge 
such fees as it deems appropriate with respect to any guarantee or grant 
issued under this part.

``SEC. 358. OPERATIONAL ASSISTANCE GRANTS.

    ``(a) In General.--
            ``(1) Authority.--In accordance with this section, the 
        Administrator may make grants to New Markets Venture Capital 
        companies and to other entities, as authorized by this part, to 
        provide operational assistance to smaller enterprises financed, 
        or expected to be financed, by such companies or other entities.
            ``(2) Terms.--Grants made under this subsection shall be 
        made over a multiyear period not to exceed 10 years, under such 
        other terms as the Administrator may require.
            ``(3) Grants to specialized small business investment 
        companies.--
                    ``(A) Authority.--In accordance with this section, 
                the Administrator may make grants to specialized small 
                business investment companies to provide operational 
                assistance to smaller enterprises financed, or expected 
                to be financed, by such companies after the effective 
                date of the New Markets Venture Capital Program Act of 
                2000.
                    ``(B) Use of funds.--The proceeds of a grant made 
                under this paragraph may be used by the company 
                receiving such grant only to provide operational 
                assistance in connection with an equity investment (made 
                with capital raised after the effective date of the New 
                Markets Venture Capital Program Act of 2000) in a 
                business located in a low-income geographic area.
                    ``(C) Submission of plans.--A specialized small 
                business investment company shall be eligible for a 
                grant under this section only if the company submits to 
                the Administrator, in such form and manner as the 
                Administrator may require, a plan for use of the grant.
            ``(4) Grant amount.--
                    ``(A) New markets venture capital companies.--The 
                amount of a grant made under this subsection to a New 
                Markets Venture Capital company shall be equal to the 
                resources (in cash or in kind) raised by the company 
                under section 354(d)(2).

[[Page 114 STAT. 2763A-661]]

                    ``(B) Other entities.--The amount of a grant made 
                under this subsection to any entity other than a New 
                Markets Venture Capital company shall be equal to the 
                resources (in cash or in kind) raised by the entity in 
                accordance with the requirements applicable to New 
                Market Venture Capital companies set forth in section 
                354(d)(2).
            ``(5) Pro rata reductions.--If the amount made available to 
        carry out this section is insufficient for the Administrator to 
        provide grants in the amounts provided for in paragraph (4), the 
        Administrator shall make pro rata reductions in the amounts 
        otherwise payable to each company and entity under such 
        paragraph.

    ``(b) Supplemental Grants.--
            ``(1) In general.--The Administrator may make supplemental 
        grants to New Markets Venture Capital companies and to other 
        entities, as authorized by this part under such terms as the 
        Administrator may require, to provide additional operational 
        assistance to smaller enterprises financed, or expected to be 
        financed, by the companies.
            ``(2) Matching requirement.--The Administrator may require, 
        as a condition of any supplemental grant made under this 
        subsection, that the company or entity receiving the grant 
        provide from resources (in a cash or in kind), other then those 
        provided by the Administrator, a matching contribution equal to 
        the amount of the supplemental grant.

    ``(c) Limitation.--None of the assistance made available under this 
section may be used for any overhead or general and administrative 
expense of a New Markets Venture Capital company or a specialized small 
business investment company.

``SEC. 359. BANK PARTICIPATION.

    ``(a) In General.--Except as provided in subsection (b), any 
national bank, any member bank of the Federal Reserve System, and (to 
the extent permitted under applicable State law) any insured bank that 
is not a member of such system, may invest in any New Markets Venture 
Capital company, or in any entity established to invest solely in New 
Markets Venture Capital companies.
    ``(b) Limitation.--No bank described in subsection (a) may make 
investments described in such subsection that are greater than 5 percent 
of the capital and surplus of the bank.

``SEC. 360. FEDERAL FINANCING BANK.

    ``Section 318 shall not apply to any debenture issued by a New 
Markets Venture Capital company under this part.

``SEC. 361. REPORTING REQUIREMENT.

    ``Each New Markets Venture Capital company that participates in the 
program established under this part shall provide to the Administrator 
such information as the Administrator may require, including--
            ``(1) information related to the measurement criteria that 
        the company proposed in its program application; and
            ``(2) in each case in which the company under this part 
        makes an investment in, or a loan or grant to, a business that 
        is not located in a low-income geographic area, a report on the 
        number and percentage of employees of the business who reside in 
        such areas.

[[Page 114 STAT. 2763A-662]]

``SEC. 362. EXAMINATIONS.

    ``(a) In General.--Each New Markets Venture Capital company that 
participates in the program established under this part shall be subject 
to examinations made at the direction of the Investment Division of the 
Small Business Administration in accordance with this section.
    ``(b) Assistance of Private Sector Entities.--Examinations under 
this section may be conducted with the assistance of a private sector 
entity that has both the qualifications and the expertise necessary to 
conduct such examinations.
    ``(c) Costs.--
            ``(1) Assessment.--
                    ``(A) In general.--The Administrator may assess the 
                cost of examinations under this section, including 
                compensation of the examiners, against the company 
                examined.
                    ``(B) Payment.--Any company against which the 
                Administrator assesses costs under this paragraph shall 
                pay such costs.

    ``(d) Deposit of Funds.--Funds collected under this section shall be 
deposited in the account for salaries and expenses of the Small Business 
Administration.

``SEC. 363. INJUNCTIONS AND OTHER ORDERS.

    ``(a) In General.--Whenever, in the judgment of the Administrator, a 
New Markets Venture Capital company or any other person has engaged or 
is about to engage in any acts or practices which constitute or will 
constitute a violation of any provision of this Act, or of any rule or 
regulation under this Act, or of any order issued under this Act, the 
Administrator may make application to the proper district court of the 
United States or a United States court of any place subject to the 
jurisdiction of the United States for an order enjoining such acts or 
practices, or for an order enforcing compliance with such provision, 
rule, regulation, or order, and such courts shall have jurisdiction of 
such actions and, upon a showing by the Administrator that such New 
Markets Venture Capital company or other person has engaged or is about 
to engage in any such acts or practices, a permanent or temporary 
injunction, restraining order, or other order, shall be granted without 
bond.
    ``(b) Jurisdiction.--In any proceeding under subsection (a), the 
court as a court of equity may, to such extent as it deems necessary, 
take exclusive jurisdiction of the New Market Venture Capital company 
and the assets thereof, wherever located, and the court shall have 
jurisdiction in any such proceeding to appoint a trustee or receiver to 
hold or administer under the direction of the court the assets so 
possessed.
    ``(c) Administrator As Trustee or Receiver.--
            ``(1) Authority.--The Administrator may act as trustee or 
        receiver of a New Markets Venture Capital company.
            ``(2) Appointment.--Upon request of the Administrator, the 
        court may appoint the Administrator to act as a trustee or 
        receiver of a New Markets Venture Capital company unless the 
        court deems such appointment inequitable or otherwise 
        inappropriate by reason of the special circumstances involved.

[[Page 114 STAT. 2763A-663]]

``SEC. 364. ADDITIONAL PENALTIES FOR NONCOMPLIANCE.

    ``(a) In General.--With respect to any New Markets Venture Capital 
company that violates or fails to comply with any of the provisions of 
this Act, of any regulation issued under this Act, or of any 
participation agreement entered into under this Act, the Administrator 
may in accordance with this section--
            ``(1) void the participation agreement between the 
        Administrator and the company; and
            ``(2) cause the company to forfeit all of the rights and 
        privileges derived by the company from this Act.

    ``(b) Adjudication of Noncompliance.--
            ``(1) In general.--Before the Administrator may cause a New 
        Markets Venture Capital company to forfeit rights or privileges 
        under subsection (a), a court of the United States of competent 
        jurisdiction must find that the company committed a violation, 
        or failed to comply, in a cause of action brought for that 
        purpose in the district, territory, or other place subject to 
        the jurisdiction of the United States, in which the principal 
        office of the company is located.
            ``(2) Parties authorized to file causes of action.--Each 
        cause of action brought by the United States under this 
        subsection shall be brought by the Administrator or by the 
        Attorney General.

``SEC. 365. UNLAWFUL ACTS AND OMISSIONS; BREACH OF FIDUCIARY DUTY.

    ``(a) Parties Deemed To Commit a Violation.--Whenever any New 
Markets Venture Capital company violates any provision of this Act, of a 
regulation issued under this Act, or of a participation agreement 
entered into under this Act, by reason of its failure to comply with its 
terms or by reason of its engaging in any act or practice that 
constitutes or will constitute a violation thereof, such violation shall 
also be deemed to be a violation and an unlawful act committed by any 
person who, directly or indirectly, authorizes, orders, participates in, 
causes, brings about, counsels, aids, or abets in the commission of any 
acts, practices, or transactions that constitute or will constitute, in 
whole or in part, such violation.
    ``(b) Fiduciary Duties.--It shall be unlawful for any officer, 
director, employee, agent, or other participant in the management or 
conduct of the affairs of a New Markets Venture Capital company to 
engage in any act or practice, or to omit any act or practice, in breach 
of the person's fiduciary duty as such officer, director, employee, 
agent, or participant if, as a result thereof, the company suffers or is 
in imminent danger of suffering financial loss or other damage.
    ``(c) Unlawful Acts.--Except with the written consent of the 
Administrator, it shall be unlawful--
            ``(1) for any person to take office as an officer, director, 
        or employee of any New Markets Venture Capital company, or to 
        become an agent or participant in the conduct of the affairs or 
        management of such a company, if the person--
                    ``(A) has been convicted of a felony, or any other 
                criminal offense involving dishonesty or breach of 
                trust; or
                    ``(B) has been found civilly liable in damages, or 
                has been permanently or temporarily enjoined by an 
                order, judgment, or decree of a court of competent 
                jurisdiction,

[[Page 114 STAT. 2763A-664]]

                by reason of any act or practice involving fraud, or 
                breach of trust; and
            ``(2) for any person continue to serve in any of the 
        capacities described in paragraph (1), if--
                    ``(A) the person is convicted of a felony, or any 
                other criminal offense involving dishonesty or breach of 
                trust; or
                    ``(B) the person is found civilly liable in damages, 
                or is permanently or temporarily enjoined by an order, 
                judgment, or decree of a court of competent 
                jurisdiction, by reason of any act or practice involving 
                fraud or breach of trust.

``SEC. 366. REMOVAL OR SUSPENSION OF DIRECTORS OR OFFICERS.

    ``Using the procedures for removing or suspending a director or an 
officer of a licensee set forth in section 313 (to the extent such 
procedures are not inconsistent with the requirements of this part), the 
Administrator may remove or suspend any director or officer of any New 
Markets Venture Capital company.

``SEC. 367. REGULATIONS.

    ``The Administrator may issue such regulations as it deems necessary 
to carry out the provisions of this part in accordance with its 
purposes.

``SEC. 368. AUTHORIZATIONS OF APPROPRIATIONS.

    ``(a) In General.--There are authorized to be appropriated for 
fiscal years 2001 through 2006, to remain available until expended, the 
following sums:
            ``(1) Such subsidy budget authority as may be necessary to 
        guarantee $150,000,000 of debentures under this part.
            ``(2) $30,000,000 to make grants under this part.

    ``(b) Funds Collected for Examinations.--Funds deposited under 
section 362(c)(2) are authorized to be appropriated only for the costs 
of examinations under section 362 and for the costs of other oversight 
activities with respect to the program established under this part.''.
    (c) Conforming Amendment.--Section 20(e)(1)(C) of the Small Business 
Act (15 U.S.C. 631 note) is amended by inserting `part A of' before 
``title III''.
    (d) Calculation of Maximum Amount of SBIC Leverage.--
            (1) Maximum leverage.--Section 303(b)(2) of the Small 
        Business Investment Act of 1958 (15 U.S.C. 683(b)(2)) is amended 
        to read as follows:
            ``(2) Maximum leverage.--
                    ``(A) In general.--After March 31, 1993, the maximum 
                amount of outstanding leverage made available to a 
                company licensed under section 301(c) of this Act shall 
                be determined by the amount of such company's private 
                capital--
                          ``(i) if the company has private capital of 
                      not more than $15,000,000, the total amount of 
                      leverage shall not exceed 300 percent of private 
                      capital;
                          ``(ii) if the company has private capital of 
                      more than $15,000,000 but not more than 
                      $30,000,000, the total amount of leverage shall 
                      not exceed $45,000,000 plus 200 percent of the 
                      amount of private capital over $15,000,000; and

[[Page 114 STAT. 2763A-665]]

                          ``(iii) if the company has private capital of 
                      more than $30,000,000, the total amount of 
                      leverage shall not exceed $75,000,000 plus 100 
                      percent of the amount of private capital over 
                      $30,000,000 but not to exceed an additional 
                      $15,000,000.
                    ``(B) Adjustments.--
                          ``(i) In general.--The dollar amounts in 
                      clauses (i), (ii), and (iii) of subparagraph (A) 
                      shall be adjusted annually to reflect increases in 
                      the Consumer Price Index established by the Bureau 
                      of Labor Statistics of the Department of Labor.
                          ``(ii) Initial adjustments.--The initial 
                      adjustments made under this subparagraph after the 
                      date of the enactment of the Small Business 
                      Reauthorization Act of 1937 shall reflect only 
                      increases from March 31, 1993.
                    ``(C) Investments in low-income geographic areas.--
                In calculating the outstanding leverage of a company for 
                the purposes of subparagraph (A), the Administrator 
                shall not include the amount of the cost basis of any 
                equity investment made by the company in a smaller 
                enterprise located in a low-income geographic area (as 
                defined in section 351), to the extent that the total of 
                such amounts does not exceed 50 percent of the company's 
                private capital.''.
            (2) Maximum aggregate leverage.--Section 303(b)(4) of the 
        Small Business Investment Act of 1958 (15 U.S.C. 683(b)(4)) is 
        amended by adding at the end the following new subparagraph:
                    ``(D) Investments in low-income geographic areas.--
                In calculating the aggregate outstanding leverage of a 
                company for the purposes of subparagraph (A), the 
                Administrator shall not include the amount of the cost 
                basis of any equity investment made by the company in a 
                smaller enterprise located in a low-income geographic 
                area (as defined in section 351), to the extent that the 
                total of such amounts does not exceed 50 percent of the 
                company's private capital.''.

    (e) Bankruptcy Exemption for New Markets Venture Capital 
Companies.--Section 109(b)(2) of title 11, United States Code, is 
amended by inserting ``a New Markets Venture Capital company as defined 
in section 351 of the Small Business Investment Act of 1958,'' after 
``homestead association,''.
    (f ) Federal Savings Associations.--Section 5(c)(4) of the Home 
Owners' Loan Act (12 U.S.C. 1464(c)(4)) is amended by adding at the end 
the following:
                    ``(F) New markets venture capital companies.--A 
                Federal savings association may invest in stock, 
                obligations, or other securities of any New Markets 
                Venture Capital company as defined in section 351 of the 
                Small Business Investment Act of 1958, except that a 
                Federal savings association may not make any investment 
                under this subparagraph if its aggregate outstanding 
                investment under this subparagraph would exceed 5 
                percent of the capital and surplus of such savings 
                association.''.

[[Page 114 STAT. 2763A-666]]

SEC. 2. BUSINESSLINC GRANTS AND COOPERATIVE AGREEMENTS.

    Section 8 of the Small Business Act (15 U.S.C. 637) is amended by 
adding at the end the following:
    ``(n) Business Grants and Cooperative Agreements.--
            ``(1) In general.--In accordance with this subsection, the 
        Administrator may make grants to and enter into cooperative 
        agreements with any coalition of private entities, public 
        entities, or any combination of private and public entities--
                    ``(A) to expand business-to-business relationships 
                between large and small businesses; and
                    ``(B) to provide businesses, directly or indirectly, 
                with online information and a database of companies that 
                are interested in mentor-protege programs or community-
                based, statewide, or local business development 
                programs.
            ``(2) Matching requirement.--Subject to subparagraph (B), 
        the Administrator may make a grant to a coalition under 
        paragraph (1) only if the coalition provides for activities 
        described in paragraph (1)(A) or (1)(B) an amount, either in 
        kind or in cash, equal to the grant amount.
            ``(3) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $6,600,000, to 
        remain available until expended, for each of fiscal years 2001 
        through 2006.''.

[[Page 114 STAT. 2763A-667]]

                          APPENDIX I--H.R. 5667

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Small Business 
Reauthorization Act of 2000''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.

           TITLE I--SMALL BUSINESS INNOVATION RESEARCH PROGRAM

Sec. 101. Short title.
Sec. 102. Findings.
Sec. 103. Extension of SBIR program.
Sec. 104. Annual report.
Sec. 105. Third phase assistance.
Sec. 106. Report on programs for annual performance plan.
Sec. 107. Output and outcome data.
Sec. 108. National Research Council reports.
Sec. 109. Federal agency expenditures for the SBIR program.
Sec. 110. Policy directive modifications.
Sec. 111. Federal and State technology partnership program.
Sec. 112. Mentoring networks.
Sec. 113. Simplified reporting requirements.
Sec. 114. Rural outreach program extension.

                    TITLE II--BUSINESS LOAN PROGRAMS

Sec. 201. Short title.
Sec. 202. Levels of participation.
Sec. 203. Loan amounts.
Sec. 204. Interest on defaulted loans.
Sec. 205. Prepayment of loans.
Sec. 206. Guarantee fees.
Sec. 207. Lease terms.
Sec. 208. Appraisals for loans secured by real property.
Sec. 209. Sale of guaranteed loans made for export purposes.
Sec. 210. Microloan program.

            TITLE III--CERTIFIED DEVELOPMENT COMPANY PROGRAM

Sec. 301. Short title.
Sec. 302. Women-owned businesses.
Sec. 303. Maximum debenture size.
Sec. 304. Fees.
Sec. 305. Premier certified lenders program.
Sec. 306. Sale of certain defaulted loans.
Sec. 307. Loan liquidation.

   TITLE IV--CORRECTIONS TO THE SMALL BUSINESS INVESTMENT ACT OF 1958

Sec. 401. Short title.
Sec. 402. Definitions.
Sec. 403. Investment in small business investment companies.
Sec. 404. Subsidy fees.
Sec. 405. Distributions.
Sec. 406. Conforming amendment.

           TITLE V--REAUTHORIZATION OF SMALL BUSINESS PROGRAMS

Sec. 501. Short title.

[[Page 114 STAT. 2763A-668]]

Sec. 502. Reauthorization of small business programs.
Sec. 503. Additional reauthorizations.
Sec. 504. Cosponsorship.

                        TITLE VI--HUBZONE PROGRAM

                 Subtitle A--HUBZones in Native America

Sec. 601. Short title.
Sec. 602. HUBZone small business concern.
Sec. 603. Qualified HUBZone small business concern.
Sec. 604. Other definitions.

                  Subtitle B--Other HUBZone Provisions

Sec. 611. Definitions.
Sec. 612. Eligible contracts.
Sec. 613. HUBZone redesignated areas.
Sec. 614. Community development.
Sec. 615. Reference corrections.

      TITLE VII--NATIONAL WOMEN'S BUSINESS COUNCIL REAUTHORIZATION

Sec. 701. Short title.
Sec. 702. Membership of the Council.
Sec. 703. Repeal of procurement project.
Sec. 704. Studies and other research.
Sec. 705. Authorization of appropriations.

                  TITLE VIII--MISCELLANEOUS PROVISIONS

Sec. 801. Loan application processing.
Sec. 802. Application of ownership requirements.
Sec. 803. Subcontracting preference for veterans.
Sec. 804. Small Business Development Center Program funding.
Sec. 805. Surety bonds.
Sec. 806. Size standards.
Sec. 807. Native Hawaiian organizations under section 8(a).
Sec. 808. National Veterans Business Development Corporation correction.
Sec. 809. Private sector resources for SCORE.
Sec. 810. Contract data collection.
Sec. 811. Procurement program for women-owned small business concerns.

           TITLE I--SMALL BUSINESS INNOVATION RESEARCH PROGRAM

SEC. 101. SHORT TITLE.

    This title may be cited as the ``Small Business Innovation Research 
Program Reauthorization Act of 2000''.

SEC. 102. FINDINGS.

    Congress finds that--
            (1) the small business innovation research program 
        established under the Small Business Innovation Development Act 
        of 1982, and reauthorized by the Small Business Research and 
        Development Enhancement Act of 1992 (in this title referred to 
        as the ``SBIR program'') is highly successful in involving small 
        businesses in federally funded research and development;
            (2) the SBIR program made the cost-effective and unique 
        research and development capabilities possessed by the small 
        businesses of the Nation available to Federal agencies and 
        departments;
            (3) the innovative goods and services developed by small 
        businesses that participated in the SBIR program have produced 
        innovations of critical importance in a wide variety of high-
        technology fields, including biology, medicine, education, and 
        defense;

[[Page 114 STAT. 2763A-669]]

            (4) the SBIR program is a catalyst in the promotion of 
        research and development, the commercialization of innovative 
        technology, the development of new products and services, and 
        the continued excellence of this Nation's high-technology 
        industries; and
            (5) the continuation of the SBIR program will provide 
        expanded opportunities for one of the Nation's vital resources, 
        its small businesses, will foster invention, research, and 
        technology, will create jobs, and will increase this Nation's 
        competitiveness in international markets.

SEC. 103. EXTENSION OF SBIR PROGRAM.

    Section 9(m) of the Small Business Act (15 U.S.C. 638(m)) is amended 
to read as follows:
    ``(m) Termination.--The authorization to carry out the Small 
Business Innovation Research Program established under this section 
shall terminate on September 30, 2008.''.

SEC. 104. ANNUAL REPORT.

    Section 9(b)(7) of the Small Business Act (15 U.S.C. 638(b)(7)) is 
amended by striking ``and the Committee on Small Business of the House 
of Representatives'' and inserting ``, and to the Committee on Science 
and the Committee on Small Business of the House of Representatives,''.

SEC. 105. THIRD PHASE ASSISTANCE.

    Section 9(e)(4)(C)(i) of the Small Business Act (15 U.S.C. 
638(e)(4)(C)(i)) is amended by striking ``; and'' and inserting ``; 
or''.

SEC. 106. REPORT ON PROGRAMS FOR ANNUAL PERFORMANCE PLAN.

    Section 9(g) of the Small Business Act (15 U.S.C. 638(g)) is 
amended--
            (1) in paragraph (7), by striking ``and'' at the end;
            (2) in paragraph (8), by striking the period at the end and 
        inserting a semicolon; and
            (3) by adding at the end the following:
            ``(9) include, as part of its annual performance plan as 
        required by subsections (a) and (b) of section 1115 of title 31, 
        United States Code, a section on its SBIR program, and shall 
        submit such section to the Committee on Small Business of the 
        Senate, and the Committee on Science and the Committee on Small 
        Business of the House of Representatives; and''.

SEC. 107. OUTPUT AND OUTCOME DATA.

    (a) Collection.--Section 9(g) of the Small Business Act (15 U.S.C. 
638(g)), as amended by section 106 of this Act, is further amended by 
adding at the end the following:
            ``(10) collect, and maintain in a common format in 
        accordance with subsection (v), such information from awardees 
        as is necessary to assess the SBIR program, including 
        information necessary to maintain the database described in 
        subsection (k).''.

    (b) Report to Congress.--Section 9(b)(7) of the Small Business Act 
(15 U.S.C. 638(b)(7)), as amended by section 104 of this Act, is further 
amended by inserting before the period at the end ``, including the data 
on output and outcomes collected pursuant to subsections (g)(10) and 
(o)(9), and a description of the extent to

[[Page 114 STAT. 2763A-670]]

which Federal agencies are providing in a timely manner information 
needed to maintain the database described in subsection (k)''.
    (c) Database.--Section 9(k) of the Small Business Act (15 U.S.C. 
638(k)) is amended to read as follows:
    ``(k) Database.--
            ``(1) Public database.--Not later than 180 days after the 
        date of the enactment of the Small Business Innovation Research 
        Program Reauthorization Act of 2000, the Administrator shall 
        develop, maintain, and make available to the public a 
        searchable, up-to-date, electronic database that includes--
                    ``(A) the name, size, location, and an identifying 
                number assigned by the Administrator, of each small 
                business concern that has received a first phase or 
                second phase SBIR award from a Federal agency;
                    ``(B) a description of each first phase or second 
                phase SBIR award received by that small business 
                concern, including--
                          ``(i) an abstract of the project funded by the 
                      award, excluding any proprietary information so 
                      identified by the small business concern;
                          ``(ii) the Federal agency making the award; 
                      and
                          ``(iii) the date and amount of the award;
                    ``(C) an identification of any business concern or 
                subsidiary established for the commercial application of 
                a product or service for which an SBIR award is made; 
                and
                    ``(D) information regarding mentors and Mentoring 
                Networks, as required by section 35(d).
            ``(2) Government database.--Not later than 180 days after 
        the date of the enactment of the Small Business Innovation 
        Research Program Reauthorization Act of 2000, the Administrator, 
        in consultation with Federal agencies required to have an SBIR 
        program pursuant to subsection (f )(1), shall develop and 
        maintain a database to be used solely for SBIR program 
        evaluation that--
                    ``(A) contains for each second phase award made by a 
                Federal agency--
                          ``(i) information collected in accordance with 
                      paragraph (3) on revenue from the sale of new 
                      products or services resulting from the research 
                      conducted under the award;
                          ``(ii) information collected in accordance 
                      with paragraph (3) on additional investment from 
                      any source, other than first phase or second phase 
                      SBIR or STTR awards, to further the research and 
                      development conducted under the award; and
                          ``(iii) any other information received in 
                      connection with the award that the Administrator, 
                      in conjunction with the SBIR program managers of 
                      Federal agencies, considers relevant and 
                      appropriate;
                    ``(B) includes any narrative information that a 
                small business concern receiving a second phase award 
                voluntarily submits to further describe the outputs and 
                outcomes of its awards;
                    ``(C) includes for each applicant for a first phase 
                or second phase award that does not receive such an 
                award--

[[Page 114 STAT. 2763A-671]]

                          ``(i) the name, size, and location, and an 
                      identifying number assigned by the Administration;
                          ``(ii) an abstract of the project; and
                          ``(iii) the Federal agency to which the 
                      application was made;
                    ``(D) includes any other data collected by or 
                available to any Federal agency that such agency 
                considers may be useful for SBIR program evaluation; and
                    ``(E) is available for use solely for program 
                evaluation purposes by the Federal Government or, in 
                accordance with policy directives issued by the 
                Administration, by other authorized persons who are 
                subject to a use and nondisclosure agreement with the 
                Federal Government covering the use of the database.
            ``(3) Updating information for database.--
                    ``(A) In general.--A small business concern applying 
                for a second phase award under this section shall be 
                required to update information in the database 
                established under this subsection for any prior second 
                phase award received by that small business concern. In 
                complying with this paragraph, a small business concern 
                may apportion sales or additional investment information 
                relating to more than one second phase award among those 
                awards, if it notes the apportionment for each award.
                    ``(B) Annual updates upon termination.--A small 
                business concern receiving a second phase award under 
                this section shall--
                          ``(i) update information in the database 
                      concerning that award at the termination of the 
                      award period; and
                          ``(ii) be requested to voluntarily update such 
                      information annually thereafter for a period of 5 
                      years.
            ``(4) Protection of information.--Information provided under 
        paragraph (2) shall be considered privileged and confidential 
        and not subject to disclosure pursuant to section 552 of title 
        5, United States Code.
            ``(5) Rule of construction.--Inclusion of information in the 
        database under this subsection shall not be considered to be 
        publication for purposes of subsection (a) or (b) of section 102 
        of title 35, United States Code.''.

SEC. 108. NATIONAL RESEARCH COUNCIL REPORTS.

    (a) Study and Recommendations.--The head of each agency with a 
budget of more than $50,000,000 for its SBIR program for fiscal year 
1999, in consultation with the Small Business Administration, shall, not 
later than 6 months after the date of the enactment of this Act, 
cooperatively enter into an agreement with the National Academy of 
Sciences for the National Research Council to--
            (1) conduct a comprehensive study of how the SBIR program 
        has stimulated technological innovation and used small 
        businesses to meet Federal research and development needs, 
        including--
                    (A) a review of the value to the Federal research 
                agencies of the research projects being conducted under 
                the

[[Page 114 STAT. 2763A-672]]

                SBIR program, and of the quality of research being 
                conducted by small businesses participating under the 
                program, including a comparison of the value of projects 
                conducted under the SBIR program to those funded by 
                other Federal research and development expenditures;
                    (B) to the extent practicable, an evaluation of the 
                economic benefits achieved by the SBIR program, 
                including the economic rate of return, and a comparison 
                of the economic benefits, including the economic rate of 
                return, achieved by the SBIR program with the economic 
                benefits, including the economic rate of return, of 
                other Federal research and development expenditures;
                    (C) an evaluation of the noneconomic benefits 
                achieved by the SBIR program over the life of the 
                program;
                    (D) a comparison of the allocation for fiscal year 
                2000 of Federal research and development funds to small 
                businesses with such allocation for fiscal year 1983, 
                and an analysis of the factors that have contributed to 
                such allocation; and
                    (E) an analysis of whether Federal agencies, in 
                fulfilling their procurement needs, are making 
                sufficient effort to use small businesses that have 
                completed a second phase award under the SBIR program; 
                and
            (2) make recommendations with respect to--
                    (A) measures of outcomes for strategic plans 
                submitted under section 306 of title 5, United States 
                Code, and performance plans submitted under section 1115 
                of title 31, United States Code, of each Federal agency 
                participating in the SBIR program;
                    (B) whether companies who can demonstrate project 
                feasibility, but who have not received a first phase 
                award, should be eligible for second phase awards, and 
                the potential impact of such awards on the competitive 
                selection process of the program;
                    (C) whether the Federal Government should be 
                permitted to recoup some or all of its expenses if a 
                controlling interest in a company receiving an SBIR 
                award is sold to a foreign company or to a company that 
                is not a small business concern;
                    (D) how to increase the use by the Federal 
                Government in its programs and procurements of 
                technology-oriented small businesses; and
                    (E) improvements to the SBIR program, if any are 
                considered appropriate.

    (b) Participation by Small Business.--
            (1) In general.--In a manner consistent with law and with 
        National Research Council study guidelines and procedures, 
        knowledgeable individuals from the small business community with 
        experience in the SBIR program shall be included--
                    (A) in any panel established by the National 
                Research Council for the purpose of performing the study 
                conducted under this section; and
                    (B) among those who are asked by the National 
                Research Council to peer review the study.
            (2) Consultation.--To ensure that the concerns of small 
        business are appropriately considered under this subsection,

[[Page 114 STAT. 2763A-673]]

        the National Research Council shall consult with and consider 
        the views of the Office of Technology and the Office of Advocacy 
        of the Small Business Administration and other interested 
        parties, including entities, organizations, and individuals 
        actively engaged in enhancing or developing the technological 
        capabilities of small business concerns.

    (c) Progress Reports.--The National Research Council shall provide 
semiannual progress reports on the study conducted under this section to 
the Committee on Science and the Committee on Small Business of the 
House of Representatives, and to the Committee on Small Business of the 
Senate.
    (d) Report.--The National Research Council shall transmit to the 
heads of agencies entering into an agreement under this section and to 
the Committee on Science and the Committee on Small Business of the 
House of Representatives, and to the Committee on Small Business of the 
Senate--
            (1) not later than 3 years after the date of the enactment 
        of this Act, a report including the results of the study 
        conducted under subsection (a)(1) and recommendations made under 
        subsection (a)(2); and
            (2) not later than 6 years after that date of the enactment, 
        an update of such report.

SEC. 109. FEDERAL AGENCY EXPENDITURES FOR THE SBIR PROGRAM.

    Section 9(i) of the Small Business Act (15 U.S.C. 638(i)) is 
amended--
            (1) by striking ``(i) Each Federal'' and inserting the 
        following:

    ``(i) Annual Reporting.--
            ``(1) In general.--Each Federal''; and
            (2) by adding at the end the following:
            ``(2) Calculation of extramural budget.--
                    ``(A) Methodology.--Not later than 4 months after 
                the date of the enactment of each appropriations Act for 
                a Federal agency required by this section to have an 
                SBIR program, the Federal agency shall submit to the 
                Administrator a report, which shall include a 
                description of the methodology used for calculating the 
                amount of the extramural budget of that Federal agency.
                    ``(B) Administrator's analysis.--The Administrator 
                shall include an analysis of the methodology received 
                from each Federal agency referred to in subparagraph (A) 
                in the report required by subsection (b)(7).''.

SEC. 110. POLICY DIRECTIVE MODIFICATIONS.

    Section 9( j) of the Small Business Act (15 U.S.C. 638( j)) is 
amended by adding at the end the following:
            ``(3) Additional modifications.--Not later than 120 days 
        after the date of the enactment of the Small Business Innovation 
        Research Program Reauthorization Act of 2000, the Administrator 
        shall modify the policy directives issued pursuant to this 
        subsection--
                    ``(A) to clarify that the rights provided for under 
                paragraph (2)(A) apply to all Federal funding awards 
                under this section, including the first phase (as 
                described in subsection (e)(4)(A)), the second phase (as 
                described in subsection (e)(4)(B)), and the third phase 
                (as described in subsection (e)(4)(C));

[[Page 114 STAT. 2763A-674]]

                    ``(B) to provide for the requirement of a succinct 
                commercialization plan with each application for a 
                second phase award that is moving toward 
                commercialization;
                    ``(C) to require agencies to report to the 
                Administration, not less frequently than annually, all 
                instances in which an agency pursued research, 
                development, or production of a technology developed by 
                a small business concern using an award made under the 
                SBIR program of that agency, and determined that it was 
                not practicable to enter into a follow-on non-SBIR 
                program funding agreement with the small business 
                concern, which report shall include, at a minimum--
                          ``(i) the reasons why the follow-on funding 
                      agreement with the small business concern was not 
                      practicable;
                          ``(ii) the identity of the entity with which 
                      the agency contracted to perform the research, 
                      development, or production; and
                          ``(iii) a description of the type of funding 
                      agreement under which the research, development, 
                      or production was obtained; and
                    ``(D) to implement subsection (v), including 
                establishing standardized procedures for the provision 
                of information pursuant to subsection (k)(3).''.

SEC. 111. FEDERAL AND STATE TECHNOLOGY PARTNERSHIP PROGRAM.

    (a) Findings.--Congress finds that--
            (1) programs to foster economic development among small 
        high-technology firms vary widely among the States;
            (2) States that do not aggressively support the development 
        of small high-technology firms, including participation by small 
        business concerns in the SBIR program, are at a competitive 
        disadvantage in establishing a business climate that is 
        conducive to technology development; and
            (3) building stronger national, State, and local support for 
        science and technology research in these disadvantaged States 
        will expand economic opportunities in the United States, create 
        jobs, and increase the competitiveness of the United States in 
        the world market.

    (b) Federal and State Technology Partnership Program.--The Small 
Business Act (15 U.S.C. 631 et seq.) is amended--
            (1) by redesignating section 34 as section 36; and
            (2) by inserting after section 33 the following:

``SEC. 34. FEDERAL AND STATE TECHNOLOGY PARTNERSHIP PROGRAM.

    ``(a) Definitions.--In this section and section 35, the following 
definitions apply:
            ``(1) Applicant.--The term `applicant' means an entity, 
        organization, or individual that submits a proposal for an award 
        or a cooperative agreement under this section.
            ``(2) Business advice and counseling.--The term `business 
        advice and counseling' means providing advice and assistance on 
        matters described in section 35(c)(2)(B) to small business 
        concerns to guide them through the SBIR and STTR program 
        process, from application to award and successful completion of 
        each phase of the program.

[[Page 114 STAT. 2763A-675]]

            ``(3) FAST program.--The term `FAST program' means the 
        Federal and State Technology Partnership Program established 
        under this section.
            ``(4) Mentor.--The term `mentor' means an individual 
        described in section 35(c)(2).
            ``(5) Mentoring network.--The term `Mentoring Network' means 
        an association, organization, coalition, or other entity 
        (including an individual) that meets the requirements of section 
        35(c).
            ``(6) Recipient.--The term `recipient' means a person that 
        receives an award or becomes party to a cooperative agreement 
        under this section.
            ``(7) SBIR program.--The term `SBIR program' has the same 
        meaning as in section 9(e)(4).
            ``(8) State.--The term `State' means each of the several 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, the Virgin Islands, Guam, and American Samoa.
            ``(9) STTR program.--The term `STTR program' has the same 
        meaning as in section 9(e)(6).

    ``(b) Establishment of Program.--The Administrator shall establish a 
program to be known as the Federal and State Technology Partnership 
Program, the purpose of which shall be to strengthen the technological 
competitiveness of small business concerns in the States.
    ``(c) Grants and Cooperative Agreements.--
            ``(1) Joint review.--In carrying out the FAST program under 
        this section, the Administrator and the SBIR program managers at 
        the National Science Foundation and the Department of Defense 
        shall jointly review proposals submitted by applicants and may 
        make awards or enter into cooperative agreements under this 
        section based on the factors for consideration set forth in 
        paragraph (2), in order to enhance or develop in a State--
                    ``(A) technology research and development by small 
                business concerns;
                    ``(B) technology transfer from university research 
                to technology-based small business concerns;
                    ``(C) technology deployment and diffusion benefiting 
                small business concerns;
                    ``(D) the technological capabilities of small 
                business concerns through the establishment or operation 
                of consortia comprised of entities, organizations, or 
                individuals, including--
                          ``(i) State and local development agencies and 
                      entities;
                          ``(ii) representatives of technology-based 
                      small business concerns;
                          ``(iii) industries and emerging companies;
                          ``(iv) universities; and
                          ``(v) small business development centers; and
                    ``(E) outreach, financial support, and technical 
                assistance to technology-based small business concerns 
                participating in or interested in participating in an 
                SBIR program, including initiatives--
                          ``(i) to make grants or loans to companies to 
                      pay a portion or all of the cost of developing 
                      SBIR proposals;

[[Page 114 STAT. 2763A-676]]

                          ``(ii) to establish or operate a Mentoring 
                      Network within the FAST program to provide 
                      business advice and counseling that will assist 
                      small business concerns that have been identified 
                      by FAST program participants, program managers of 
                      participating SBIR agencies, the Administration, 
                      or other entities that are knowledgeable about the 
                      SBIR and STTR programs as good candidates for the 
                      SBIR and STTR programs, and that would benefit 
                      from mentoring, in accordance with section 35;
                          ``(iii) to create or participate in a training 
                      program for individuals providing SBIR outreach 
                      and assistance at the State and local levels; and
                          ``(iv) to encourage the commercialization of 
                      technology developed through SBIR program funding.
            ``(2) Selection considerations.--In making awards or 
        entering into cooperative agreements under this section, the 
        Administrator and the SBIR program managers referred to in 
        paragraph (1)--
                    ``(A) may only consider proposals by applicants that 
                intend to use a portion of the Federal assistance 
                provided under this section to provide outreach, 
                financial support, or technical assistance to 
                technology-based small business concerns participating 
                in or interested in participating in the SBIR program; 
                and
                    ``(B) shall consider, at a minimum--
                          ``(i) whether the applicant has demonstrated 
                      that the assistance to be provided would address 
                      unmet needs of small business concerns in the 
                      community, and whether it is important to use 
                      Federal funding for the proposed activities;
                          ``(ii) whether the applicant has demonstrated 
                      that a need exists to increase the number or 
                      success of small high-technology businesses in the 
                      State, as measured by the number of first phase 
                      and second phase SBIR awards that have 
                      historically been received by small business 
                      concerns in the State;
                          ``(iii) whether the projected costs of the 
                      proposed activities are reasonable;
                          ``(iv) whether the proposal integrates and 
                      coordinates the proposed activities with other 
                      State and local programs assisting small high-
                      technology firms in the State; and
                          ``(v) the manner in which the applicant will 
                      measure the results of the activities to be 
                      conducted.
            ``(3) Proposal limit.--Not more than one proposal may be 
        submitted for inclusion in the FAST program under this section 
        to provide services in any one State in any 1 fiscal year.
            ``(4) Process.--Proposals and applications for assistance 
        under this section shall be in such form and subject to such 
        procedures as the Administrator shall establish.

    ``(d) Cooperation and Coordination.--In carrying out the FAST 
program under this section, the Administrator shall cooperate and 
coordinate with--
            ``(1) Federal agencies required by section 9 to have an SBIR 
        program; and

[[Page 114 STAT. 2763A-677]]

            ``(2) entities, organizations, and individuals actively 
        engaged in enhancing or developing the technological 
        capabilities of small business concerns, including--
                    ``(A) State and local development agencies and 
                entities;
                    ``(B) State committees established under the 
                Experimental Program to Stimulate Competitive Research 
                of the National Science Foundation (as established under 
                section 113 of the National Science Foundation 
                Authorization Act of 1988 (42 U.S.C. 1862g));
                    ``(C) State science and technology councils; and
                    ``(D) representatives of technology-based small 
                business concerns.

    ``(e) Administrative Requirements.--
            ``(1) Competitive basis.--Awards and cooperative agreements 
        under this section shall be made or entered into, as applicable, 
        on a competitive basis.
            ``(2) Matching requirements.--
                    ``(A) In general.--The non-Federal share of the cost 
                of an activity (other than a planning activity) carried 
                out using an award or under a cooperative agreement 
                under this section shall be--
                          ``(i) 50 cents for each Federal dollar, in the 
                      case of a recipient that will serve small business 
                      concerns located in one of the 18 States receiving 
                      the fewest SBIR first phase awards (as described 
                      in section 9(e)(4)(A));
                          ``(ii) except as provided in subparagraph (B), 
                      1 dollar for each Federal dollar, in the case of a 
                      recipient that will serve small business concerns 
                      located in one of the 16 States receiving the 
                      greatest number of such SBIR first phase awards; 
                      and
                          ``(iii) except as provided in subparagraph 
                      (B), 75 cents for each Federal dollar, in the case 
                      of a recipient that will serve small business 
                      concerns located in a State that is not described 
                      in clause (i) or (ii) that is receiving such SBIR 
                      first phase awards.
                    ``(B) Low-income areas.--The non-Federal share of 
                the cost of the activity carried out using an award or 
                under a cooperative agreement under this section shall 
                be 50 cents for each Federal dollar that will be 
                directly allocated by a recipient described in 
                subparagraph (A) to serve small business concerns 
                located in a qualified census tract, as that term is 
                defined in section 42(d)(5)(C)(ii) of the Internal 
                Revenue Code of 1986. Federal dollars not so allocated 
                by that recipient shall be subject to the matching 
                requirements of subparagraph (A).
                    ``(C) Types of funding.--The non-Federal share of 
                the cost of an activity carried out by a recipient shall 
                be comprised of not less than 50 percent cash and not 
                more than 50 percent of indirect costs and in-kind 
                contributions, except that no such costs or 
                contributions may be derived from funds from any other 
                Federal program.
                    ``(D) Rankings.--For purposes of subparagraph (A), 
                the Administrator shall reevaluate the ranking of a 
                State once every 2 fiscal years, beginning with fiscal 
                year 2001, based on the most recent statistics compiled 
                by the Administrator.

[[Page 114 STAT. 2763A-678]]

            ``(3) Duration.--Awards may be made or cooperative 
        agreements entered into under this section for multiple years, 
        not to exceed 5 years in total.

    ``(f ) Reports.--
            ``(1) Initial report.--Not later than 120 days after the 
        date of the enactment of the Small Business Innovation Research 
        Program Reauthorization Act of 2000, the Administrator shall 
        prepare and submit to the Committee on Small Business of the 
        Senate and the Committee on Science and the Committee on Small 
        Business of the House of Representatives a report, which shall 
        include, with respect to the FAST program, including Mentoring 
        Networks--
                    ``(A) a description of the structure and procedures 
                of the program;
                    ``(B) a management plan for the program; and
                    ``(C) a description of the merit-based review 
                process to be used in the program.
            ``(2) Annual reports.--The Administrator shall submit an 
        annual report to the Committee on Small Business of the Senate 
        and the Committee on Science and the Committee on Small Business 
        of the House of Representatives regarding--
                    ``(A) the number and amount of awards provided and 
                cooperative agreements entered into under the FAST 
                program during the preceding year;
                    ``(B) a list of recipients under this section, 
                including their location and the activities being 
                performed with the awards made or under the cooperative 
                agreements entered into; and
                    ``(C) the Mentoring Networks and the mentoring 
                database, as provided for under section 35, including--
                          ``(i) the status of the inclusion of mentoring 
                      information in the database required by section 
                      9(k); and
                          ``(ii) the status of the implementation and 
                      description of the usage of the Mentoring 
                      Networks.

    ``(g) Reviews by Inspector General.--
            ``(1) In general.--The Inspector General of the 
        Administration shall conduct a review of--
                    ``(A) the extent to which recipients under the FAST 
                program are measuring the performance of the activities 
                being conducted and the results of such measurements; 
                and
                    ``(B) the overall management and effectiveness of 
                the FAST program.
            ``(2) Report.--During the first quarter of fiscal year 2004, 
        the Inspector General of the Administration shall submit a 
        report to the Committee on Small Business of the Senate and the 
        Committee on Science and the Committee on Small Business of the 
        House of Representatives on the review conducted under paragraph 
        (1).

    ``(h) Program Levels.--
            ``(1) In general.--There is authorized to be appropriated to 
        carry out the FAST program, including Mentoring Networks, under 
        this section and section 35, $10,000,000 for each of fiscal 
        years 2001 through 2005.
            ``(2) Mentoring database.--Of the total amount made 
        available under paragraph (1) for fiscal years 2001 through

[[Page 114 STAT. 2763A-679]]

        2005, a reasonable amount, not to exceed a total of $500,000, 
        may be used by the Administration to carry out section 35(d).

    ``(i) Termination.--The authority to carry out the FAST program 
under this section shall terminate on September 30, 2005.''.
    (c) Coordination of Technology Development Programs.--Section 9 of 
the Small Business Act (15 U.S.C. 638) is amended by adding at the end 
the following:
    ``(u) Coordination of Technology Development Programs.--
            ``(1) Definition of technology development program.--In this 
        subsection, the term `technology development program' means--
                    ``(A) the Experimental Program to Stimulate 
                Competitive Research of the National Science Foundation, 
                as established under section 113 of the National Science 
                Foundation Authorization Act of 1988 (42 U.S.C. 1862g);
                    ``(B) the Defense Experimental Program to Stimulate 
                Competitive Research of the Department of Defense;
                    ``(C) the Experimental Program to Stimulate 
                Competitive Research of the Department of Energy;
                    ``(D) the Experimental Program to Stimulate 
                Competitive Research of the Environmental Protection 
                Agency;
                    ``(E) the Experimental Program to Stimulate 
                Competitive Research of the National Aeronautics and 
                Space Administration;
                    ``(F) the Institutional Development Award Program of 
                the National Institutes of Health; and
                    ``(G) the National Research Initiative Competitive 
                Grants Program of the Department of Agriculture.
            ``(2) Coordination requirements.--Each Federal agency that 
        is subject to subsection (f ) and that has established a 
        technology development program may, in each fiscal year, review 
        for funding under that technology development program--
                    ``(A) any proposal to provide outreach and 
                assistance to one or more small business concerns 
                interested in participating in the SBIR program, 
                including any proposal to make a grant or loan to a 
                company to pay a portion or all of the cost of 
                developing an SBIR proposal, from an entity, 
                organization, or individual located in--
                          ``(i) a State that is eligible to participate 
                      in that program; or
                          ``(ii) a State described in paragraph (3); or
                    ``(B) any proposal for the first phase of the SBIR 
                program, if the proposal, though meritorious, is not 
                funded through the SBIR program for that fiscal year due 
                to funding restraints, from a small business concern 
                located in--
                          ``(i) a State that is eligible to participate 
                      in a technology development program; or
                          ``(ii) a State described in paragraph (3).
            ``(3) Additionally eligible state.--A State referred to in 
        subparagraph (A)(ii) or (B)(ii) of paragraph (2) is a State in 
        which the total value of contracts awarded to small business 
        concerns under all SBIR programs is less than the total value of 
        contracts awarded to small business concerns in a majority of 
        other States, as determined by the Administrator in biennial

[[Page 114 STAT. 2763A-680]]

        fiscal years, beginning with fiscal year 2000, based on the most 
        recent statistics compiled by the Administrator.''.

SEC. 112. MENTORING NETWORKS.

    The Small Business Act (15 U.S.C. 631 et seq.) is amended by 
inserting after section 34, as added by section 111(b)(2) of this Act, 
the following:

``SEC. 35. MENTORING NETWORKS.

    ``(a) Findings.--Congress finds that--
            ``(1) the SBIR and STTR programs create jobs, increase 
        capacity for technological innovation, and boost international 
        competitiveness;
            ``(2) increasing the quantity of applications from all 
        States to the SBIR and STTR programs would enhance competition 
        for such awards and the quality of the completed projects; and
            ``(3) mentoring is a natural complement to the FAST program 
        of reaching out to new companies regarding the SBIR and STTR 
        programs as an effective and low-cost way to improve the 
        likelihood that such companies will succeed in such programs in 
        developing and commercializing their research.

    ``(b) Authorization for Mentoring Networks.--The recipient of an 
award or participant in a cooperative agreement under section 34 may use 
a reasonable amount of such assistance for the establishment of a 
Mentoring Network under this section.
    ``(c) Criteria for Mentoring Networks.--A Mentoring Network 
established using assistance under section 34 shall--
            ``(1) provide business advice and counseling to high 
        technology small business concerns located in the State or 
        region served by the Mentoring Network and identified under 
        section 34(c)(1)(E)(ii) as potential candidates for the SBIR or 
        STTR programs;
            ``(2) identify volunteer mentors who--
                    ``(A) are persons associated with a small business 
                concern that has successfully completed one or more SBIR 
                or STTR funding agreements; and
                    ``(B) have agreed to guide small business concerns 
                through all stages of the SBIR or STTR program process, 
                including providing assistance relating to--
                          ``(i) proposal writing;
                          ``(ii) marketing;
                          ``(iii) Government accounting;
                          ``(iv) Government audits;
                          ``(v) project facilities and equipment;
                          ``(vi) human resources;
                          ``(vii) third phase partners;
                          ``(viii) commercialization;
                          ``(ix) venture capital networking; and
                          ``(x) other matters relevant to the SBIR and 
                      STTR programs;
            ``(3) have experience working with small business concerns 
        participating in the SBIR and STTR programs;
            ``(4) contribute information to the national database 
        referred to in subsection (d); and
            ``(5) agree to reimburse volunteer mentors for out-of-pocket 
        expenses related to service as a mentor under this section.

    ``(d) Mentoring Database.--The Administrator shall--

[[Page 114 STAT. 2763A-681]]

            ``(1) include in the database required by section 9(k)(1), 
        in cooperation with the SBIR, STTR, and FAST programs, 
        information on Mentoring Networks and mentors participating 
        under this section, including a description of their areas of 
        expertise;
            ``(2) work cooperatively with Mentoring Networks to maintain 
        and update the database;
            ``(3) take such action as may be necessary to aggressively 
        promote Mentoring Networks under this section; and
            ``(4) fulfill the requirements of this subsection either 
        directly or by contract.''.

SEC. 113. SIMPLIFIED REPORTING REQUIREMENTS.

    Section 9 of the Small Business Act (15 U.S.C. 638), as amended by 
this Act, is further amended by adding at the end the following:
    ``(v) Simplified Reporting Requirements.--The Administrator shall 
work with the Federal agencies required by this section to have an SBIR 
program to standardize reporting requirements for the collection of data 
from SBIR applicants and awardees, including data for inclusion in the 
database under subsection (k), taking into consideration the unique 
needs of each agency, and to the extent possible, permitting the 
updating of previously reported information by electronic means. Such 
requirements shall be designed to minimize the burden on small 
businesses.''.

SEC. 114. RURAL OUTREACH PROGRAM EXTENSION.

    (a) Extension of Termination Date.--Section 501(b)(2) of the Small 
Business Reauthorization Act of 1997 (15 U.S.C. 638 note; 111 Stat. 
2622) is amended by striking ``2001'' and inserting ``2005''.
    (b) Extension of Authorization of Appropriations.--Section 9(s)(2) 
of the Small Business Act (15 U.S.C. 638(s)(2)) is amended by striking 
``for fiscal year 1998, 1999, 2000, or 2001'' and inserting ``for each 
of the fiscal years 2000 through 2005,''.

                    TITLE II--BUSINESS LOAN PROGRAMS

SEC. 201. SHORT TITLE.

    This title may be cited as the ``Small Business Loan Improvement Act 
of 2000''.

SEC. 202. LEVELS OF PARTICIPATION.

    Section 7(a)(2)(A) of the Small Business Act (15 U.S.C. 
636(a)(2)(A)) is amended--
            (1) in paragraph (i) by striking ``$100,000'' and inserting 
        ``$150,000''; and
            (2) in paragraph (ii)--
                    (A) by striking ``80 percent'' and inserting ``85 
                percent''; and
                    (B) by striking ``$100,000'' and inserting 
                ``$150,000''.

SEC. 203. LOAN AMOUNTS.

    Section 7(a)(3)(A) of the Small Business Act (15 U.S.C. 
636(a)(3)(A)) is amended by striking ``$750,000,'' and inserting, 
``$1,000,000 (or if the gross loan amount would exceed $2,000,000),''.

[[Page 114 STAT. 2763A-682]]

SEC. 204. INTEREST ON DEFAULTED LOANS.

    Section 7(a)(4)(B) of the Small Business Act (15 U.S.C. 
636(a)(4)(B)) is amended by adding at the end the following:
                          ``(iii) Applicability.--Clauses (i) and (ii) 
                      shall not apply to loans made on or after October 
                      1, 2000.''.

SEC. 205. PREPAYMENT OF LOANS.

    Section 7(a)(4) of the Small Business Act (15 U.S.C. 636(a)(4)) is 
further amended--
            (1) by striking ``(4) Interest rates and fees.--'' and 
        inserting ``(4) Interest rates and prepayment charges.--''; and
            (2) by adding at the end the following:
                    ``(C) Prepayment charges.--
                          ``(i) In general.--A borrower who prepays any 
                      loan guaranteed under this subsection shall remit 
                      to the Administration a subsidy recoupment fee 
                      calculated in accordance with clause (ii) if--
                                    ``(I) the loan is for a term of not 
                                less than 15 years;
                                    ``(II) the prepayment is voluntary;
                                    ``(III) the amount of prepayment in 
                                any calendar year is more than 25 
                                percent of the outstanding balance of 
                                the loan; and
                                    ``(IV) the prepayment is made within 
                                the first 3 years after disbursement of 
                                the loan proceeds.
                          ``(ii) Subsidy recoupment fee.--The subsidy 
                      recoupment fee charged under clause (i) shall be--
                                    ``(I) 5 percent of the amount of 
                                prepayment, if the borrower prepays 
                                during the first year after 
                                disbursement;
                                    ``(II) 3 percent of the amount of 
                                prepayment, if the borrower prepays 
                                during the second year after 
                                disbursement; and
                                    ``(III) 1 percent of the amount of 
                                prepayment, if the borrower prepays 
                                during the third year after 
                                disbursement.''.

SEC. 206. GUARANTEE FEES.

    Section 7(a)(18) of the Small Business Act (15 U.S.C. 636(a)(18)) is 
amended to read as follows:
            ``(18) Guarantee fees.--
                    ``(A) In general.--With respect to each loan 
                guaranteed under this subsection (other than a loan that 
                is repayable in 1 year or less), the Administration 
                shall collect a guarantee fee, which shall be payable by 
                the participating lender, and may be charged to the 
                borrower, as follows:
                          ``(i) A guarantee fee equal to 2 percent of 
                      the deferred participation share of a total loan 
                      amount that is not more than $150,000.
                          ``(ii) A guarantee fee equal to 3 percent of 
                      the deferred participation share of a total loan 
                      amount that is more than $150,000, but not more 
                      than $700,000.
                          ``(iii) A guarantee fee equal to 3.5 percent 
                      of the deferred participation share of a total 
                      loan amount that is more than $700,000.

[[Page 114 STAT. 2763A-683]]

                    ``(B) Retention of certain fees.--Lenders 
                participating in the programs established under this 
                subsection may retain not more than 25 percent of a fee 
                collected under subparagraph (A)(i).''.

SEC. 207. LEASE TERMS.

    Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is further 
amended by adding at the end the following:
            ``(28) Leasing.--In addition to such other lease 
        arrangements as may be authorized by the Administration, a 
        borrower may permanently lease to one or more tenants not more 
        than 20 percent of any property constructed with the proceeds of 
        a loan guaranteed under this subsection, if the borrower 
        permanently occupies and uses not less than 60 percent of the 
        total business space in the property.''.

SEC. 208. APPRAISALS FOR LOANS SECURED BY REAL PROPERTY.

    (a) Small Business Act.--Section 7(a) of the Small Business Act (15 
U.S.C. 636(a)) is amended by adding at the end the following:
            ``(29) Real estate appraisals.--With respect to a loan under 
        this subsection that is secured by commercial real property, an 
        appraisal of such property by a State licensed or certified 
        appraiser--
                    ``(A) shall be required by the Administration in 
                connection with any such loan for more than $250,000; or
                    ``(B) may be required by the Administration or the 
                lender in connection with any such loan for $250,000 or 
                less, if such appraisal is necessary for appropriate 
                evaluation of creditworthiness.''.

    (b) Small Business Investment Act of 1958.--Section 502(3)(E) of the 
Small Business Investment Act of 1958 (15 U.S.C. 696(3)(E)) is amended--
            (1) by striking ``The collateral'' and inserting the 
        following:
                          ``(i) In general.--The collateral''; and
            (2) by adding at the end the following:
                          ``(ii) Appraisals.--With respect to commercial 
                      real property provided by the small business 
                      concern as collateral, an appraisal of the 
                      property by a State licensed or certified 
                      appraiser--
                                    ``(I) shall be required by the 
                                Administration before disbursement of 
                                the loan if the estimated value of that 
                                property is more than $250,000; or
                                    ``(II) may be required by the 
                                Administration or the lender before 
                                disbursement of the loan if the 
                                estimated value of that property is 
                                $250,000 or less, and such appraisal is 
                                necessary for appropriate evaluation of 
                                creditworthiness.''.

SEC. 209. SALE OF GUARANTEED LOANS MADE FOR EXPORT PURPOSES.

    Section 5(f )(1)(C) of the Small Business Act (15 U.S.C. 634(f 
)(1)(C)) is amended to read as follows:
            ``(C) each loan, except each loan made under section 
        7(a)(14), shall have been fully disbursed to the borrower prior 
        to any sale.''.

[[Page 114 STAT. 2763A-684]]

SEC. 210. MICROLOAN PROGRAM.

    (a) In General.--Section 7(m) of the Small Business Act (15 U.S.C. 
636(m)) is amended--
            (1) in paragraphs (1)(B)(iii) and (3)(E), by striking 
        ``$25,000'' each place it appears and inserting ``$35,000'';
            (2) in paragraphs (1)(A)(iii)(I), (3)(A)(ii), and 
        (4)(C)(i)(II), by striking ``$7,500'' each place it appears and 
        inserting ``$10,000'';
            (3) in paragraph (3)(E), by striking ``$15,000'' and 
        inserting ``$20,000'';
            (4) in paragraph (5)(A)--
                    (A) by striking ``25 grants'' and inserting ``55 
                grants''; and
                    (B) by striking ``$125,000'' and inserting 
                ``$200,000'';
            (5) in paragraph (6)(B), by striking ``$10,000'' and 
        inserting ``$15,000''; and
            (6) in paragraph (7), by striking subparagraph (A) and 
        inserting the following:
                    ``(A) Number of participants.--Under the program 
                authorized by this subsection, the Administration may 
                fund, on a competitive basis, not more than 300 
                intermediaries.''.

    (b) Conforming Amendments.--Section 7(m)(11)(B) of the Small 
Business Act (15 U.S.C. 636(m)(11)(B)) is amended by striking 
``$25,000'' and inserting ``$35,000''.

            TITLE III--CERTIFIED DEVELOPMENT COMPANY PROGRAM

SEC. 301. SHORT TITLE.

    This title may be cited as the ``Certified Development Company 
Program Improvements Act of 2000''.

SEC. 302. WOMEN-OWNED BUSINESSES.

    Section 501(d)(3)(C) of the Small Business Investment Act of 1958 
(15 U.S.C. 695(d)(3)(C)) is amended by inserting before the comma ``or 
women-owned business development''.

SEC. 303. MAXIMUM DEBENTURE SIZE.

    Section 502(2) of the Small Business Investment Act of 1958 (15 
U.S.C. 696(2)) is amended to read as follows:
            ``(2) Loans made by the Administration under this section 
        shall be limited to $1,000,000 for each such identifiable small 
        business concern, except loans meeting the criteria specified in 
        section 501(d)(3), which shall be limited to $1,300,000 for each 
        such identifiable small business concern.''.

SEC. 304. FEES.

    Section 503(f ) of the Small Business Investment Act of 1958 (15 
U.S.C. 697(f )) is amended to read as follows:
    ``(f ) Effective Date.--The fees authorized by subsections (b) and 
(d) shall apply to financings approved by the Administration on or after 
October 1, 1996, but shall not apply to financings approved by the 
Administration on or after October 1, 2003.''.

[[Page 114 STAT. 2763A-685]]

SEC. 305. PREMIER CERTIFIED LENDERS PROGRAM.

    Section 217(b) of the Small Business Administration Reauthorization 
and Amendments Act of 1994 (Public Law 103-403, 15 U.S.C. 697 note) 
(relating to section 508 of the Small Business Investment Act of 1958) 
is repealed.

SEC. 306. SALE OF CERTAIN DEFAULTED LOANS.

    Section 508 of the Small Business Investment Act of 1958 (15 U.S.C. 
697e) is amended--
            (1) in subsection (a), by striking ``On a pilot program 
        basis, the'' and inserting ``The'';
            (2) by redesignating subsections (d) through (i) as 
        subsections (e) through ( j), respectively;
            (3) in subsection (f ) (as redesignated by paragraph (2)), 
        by striking ``subsection (f )'' and inserting ``subsection 
        (g)'';
            (4) in subsection (h) (as redesignated by paragraph (2)), by 
        striking ``subsection (f )'' and inserting ``subsection (g)''; 
        and
            (5) by inserting after subsection (c) the following:

    ``(d) Sale of Certain Defaulted Loans.--
            ``(1) Notice.--If, upon default in repayment, the 
        Administration acquires a loan guaranteed under this section and 
        identifies such loan for inclusion in a bulk asset sale of 
        defaulted or repurchased loans or other financings, it shall 
        give prior notice thereof to any certified development company 
        which has a contingent liability under this section. The notice 
        shall be given to the company as soon as possible after the 
        financing is identified, but not less than 90 days before the 
        date the Administration first makes any records on such 
        financing available for examination by prospective purchasers 
        prior to its offering in a package of loans for bulk sale.
            ``(2) Limitations.--The Administration shall not offer any 
        loan described in paragraph (1) as part of a bulk sale unless 
        it--
                    ``(A) provides prospective purchasers with the 
                opportunity to examine the Administration's records with 
                respect to such loan; and
                    ``(B) provides the notice required by paragraph 
                (1).''.

SEC. 307. LOAN LIQUIDATION.

    (a) Liquidation and Foreclosure.--Title V of the Small Business 
Investment Act of 1958 (15 U.S.C. 695 et seq.) is amended by adding at 
the end the following:

``SEC. 510. FORECLOSURE AND LIQUIDATION OF LOANS.

    ``(a) Delegation of Authority.--In accordance with this section, the 
Administration shall delegate to any qualified State or local 
development company (as defined in section 503(e)) that meets the 
eligibility requirements of subsection (b)(1) the authority to foreclose 
and liquidate, or to otherwise treat in accordance with this section, 
defaulted loans in its portfolio that are funded with the proceeds of 
debentures guaranteed by the Administration under section 503.
    ``(b) Eligibility for Delegation.--
            ``(1) Requirements.--A qualified State or local development 
        company shall be eligible for a delegation of authority under 
        subsection (a) if--
                    ``(A) the company--

[[Page 114 STAT. 2763A-686]]

                          ``(i) has participated in the loan liquidation 
                      pilot program established by the Small Business 
                      Programs Improvement Act of 1996 (15 U.S.C. 695 
                      note), as in effect on the day before promulgation 
                      of final regulations by the Administration 
                      implementing this section;
                          ``(ii) is participating in the Premier 
                      Certified Lenders Program under section 508; or
                          ``(iii) during the 3 fiscal years immediately 
                      prior to seeking such a delegation, has made an 
                      average of not less than 10 loans per year that 
                      are funded with the proceeds of debentures 
                      guaranteed under section 503; and
                    ``(B) the company--
                          ``(i) has one or more employees--
                                    ``(I) with not less than 2 years of 
                                substantive, decision-making experience 
                                in administering the liquidation and 
                                workout of problem loans secured in a 
                                manner substantially similar to loans 
                                funded with the proceeds of debentures 
                                guaranteed under section 503; and
                                    ``(II) who have completed a training 
                                program on loan liquidation developed by 
                                the Administration in conjunction with 
                                qualified State and local development 
                                companies that meet the requirements of 
                                this paragraph; or
                          ``(ii) submits to the Administration 
                      documentation demonstrating that the company has 
                      contracted with a qualified third-party to perform 
                      any liquidation activities and secures the 
                      approval of the contract by the Administration 
                      with respect to the qualifications of the 
                      contractor and the terms and conditions of 
                      liquidation activities.
            ``(2) Confirmation.--On request the Administration shall 
        examine the qualifications of any company described in 
        subsection (a) to determine if such company is eligible for the 
        delegation of authority under this section. If the 
        Administration determines that a company is not eligible, the 
        Administration shall provide the company with the reasons for 
        such ineligibility.

    ``(c) Scope of Delegated Authority.--
            ``(1) In general.--Each qualified State or local development 
        company to which the Administration delegates authority under 
        section (a) may with respect to any loan described in subsection 
        (a)--
                    ``(A) perform all liquidation and foreclosure 
                functions, including the purchase in accordance with 
                this subsection of any other indebtedness secured by the 
                property securing the loan, in a reasonable and sound 
                manner according to commercially accepted practices, 
                pursuant to a liquidation plan approved in advance by 
                the Administration under paragraph (2)(A);
                    ``(B) litigate any matter relating to the 
                performance of the functions described in subparagraph 
                (A), except that the Administration may--
                          ``(i) defend or bring any claim if--

[[Page 114 STAT. 2763A-687]]

                                    ``(I) the outcome of the litigation 
                                may adversely affect the 
                                Administration's management of the loan 
                                program established under section 502; 
                                or
                                    ``(II) the Administration is 
                                entitled to legal remedies not available 
                                to a qualified State or local 
                                development company and such remedies 
                                will benefit either the Administration 
                                or the qualified State or local 
                                development company; or
                          ``(ii) oversee the conduct of any such 
                      litigation; and
                    ``(C) take other appropriate actions to mitigate 
                loan losses in lieu of total liquidation or 
                foreclosures, including the restructuring of a loan in 
                accordance with prudent loan servicing practices and 
                pursuant to a workout plan approved in advance by the 
                Administration under paragraph (2)(C).
            ``(2) Administration approval.--
                    ``(A) Liquidation plan.--
                          ``(i) In general.--Before carrying out 
                      functions described in paragraph (1)(A), a 
                      qualified State or local development company shall 
                      submit to the Administration a proposed 
                      liquidation plan.
                          ``(ii) Administration action on plan.--
                                    ``(I) Timing.--Not later than 15 
                                business days after a liquidation plan 
                                is received by the Administration under 
                                clause (i), the Administration shall 
                                approve or reject the plan.
                                    ``(II) Notice of no decision.--With 
                                respect to any plan that cannot be 
                                approved or denied within the 15-day 
                                period required by subclause (I), the 
                                Administration shall within such period 
                                provide in accordance with subparagraph 
                                (E) notice to the company that submitted 
                                the plan.
                          ``(iii) Routine actions.--In carrying out 
                      functions described in paragraph (1)(A), a 
                      qualified State or local development company may 
                      undertake routine actions not addressed in a 
                      liquidation plan without obtaining additional 
                      approval from the Administration.
                    ``(B) Purchase of indebtedness.--
                          ``(i) In general.--In carrying out functions 
                      described in paragraph (1)(A), a qualified State 
                      or local development company shall submit to the 
                      Administration a request for written approval 
                      before committing the Administration to the 
                      purchase of any other indebtedness secured by the 
                      property securing a defaulted loan.
                          ``(ii) Administration action on request.--
                                    ``(I) Timing.--Not later than 15 
                                business days after receiving a request 
                                under clause (i), the Administration 
                                shall approve or deny the request.
                                    ``(II) Notice of no decision.--With 
                                respect to any request that cannot be 
                                approved or denied within the 15-day 
                                period required by subclause (I), the 
                                Administration shall within such period 
                                provide in accordance with subparagraph 
                                (E) notice to the company that submitted 
                                the request.
                    ``(C) Workout plan.--

[[Page 114 STAT. 2763A-688]]

                          ``(i) In general.--In carrying out functions 
                      described in paragraph (1)(C), a qualified State 
                      or local development company shall submit to the 
                      Administration a proposed workout plan.
                          ``(ii) Administration action on plan.--
                                    ``(I) Timing.--Not later than 15 
                                business days after a workout plan is 
                                received by the Administration under 
                                clause (i), the Administration shall 
                                approve or reject the plan.
                                    ``(II) Notice of no decision.--With 
                                respect to any workout plan that cannot 
                                be approved or denied within the 15-day 
                                period required by subclause (I), the 
                                Administration shall within such period 
                                provide in accordance with subparagraph 
                                (E) notice to the company that submitted 
                                the plan.
                    ``(D) Compromise of indebtedness.--In carrying out 
                functions described in paragraph (1)(A), a qualified 
                State or local development company may--
                          ``(i) consider an offer made by an obligor to 
                      compromise the debt for less than the full amount 
                      owing; and
                          ``(ii) pursuant to such an offer, release any 
                      obligor or other party contingently liable, if the 
                      company secures the written approval of the 
                      Administration.
                    ``(E) Contents of notice of no decision.--Any notice 
                provided by the Administration under subparagraph 
                (A)(ii)(II), (B)(ii)(II), or (C)(ii)(II)--
                          ``(i) shall be in writing;
                          ``(ii) shall state the specific reason for the 
                      Administration's inability to act on a plan or 
                      request;
                          ``(iii) shall include an estimate of the 
                      additional time required by the Administration to 
                      act on the plan or request; and
                          ``(iv) if the Administration cannot act 
                      because insufficient information or documentation 
                      was provided by the company submitting the plan or 
                      request, shall specify the nature of such 
                      additional information or documentation.
            ``(3) Conflict of interest.--In carrying out functions 
        described in paragraph (1), a qualified State or local 
        development company shall take no action that would result in an 
        actual or apparent conflict of interest between the company (or 
        any employee of the company) and any third party lender, 
        associate of a third party lender, or any other person 
        participating in a liquidation, foreclosure, or loss mitigation 
        action.

    ``(d) Suspension or Revocation of Authority.--The Administration may 
revoke or suspend a delegation of authority under this section to any 
qualified State or local development company, if the Administration 
determines that the company--
            ``(1) does not meet the requirements of subsection (b)(1);
            ``(2) has violated any applicable rule or regulation of the 
        Administration or any other applicable law; or
            ``(3) fails to comply with any reporting requirement that 
        may be established by the Administration relating to carrying 
        out of functions described in paragraph (1).

    ``(e) Report.--

[[Page 114 STAT. 2763A-689]]

            ``(1) In general.--Based on information provided by 
        qualified State and local development companies and the 
        Administration, the Administration shall annually submit to the 
        Committees on Small Business of the House of Representatives and 
        of the Senate a report on the results of delegation of authority 
        under this section.
            ``(2) Contents.--Each report submitted under paragraph (1) 
        shall include the following information:
                    ``(A) With respect to each loan foreclosed or 
                liquidated by a qualified State or local development 
                company under this section, or for which losses were 
                otherwise mitigated by the company pursuant to a workout 
                plan under this section--
                          ``(i) the total cost of the project financed 
                      with the loan;
                          ``(ii) the total original dollar amount 
                      guaranteed by the Administration;
                          ``(iii) the total dollar amount of the loan at 
                      the time of liquidation, foreclosure, or 
                      mitigation of loss;
                          ``(iv) the total dollar losses resulting from 
                      the liquidation, foreclosure, or mitigation of 
                      loss; and
                          ``(v) the total recoveries resulting from the 
                      liquidation, foreclosure, or mitigation of loss, 
                      both as a percentage of the amount guaranteed and 
                      the total cost of the project financed.
                    ``(B) With respect to each qualified State or local 
                development company to which authority is delegated 
                under this section, the totals of each of the amounts 
                described in clauses (i) through (v) of subparagraph 
                (A).
                    ``(C) With respect to all loans subject to 
                foreclosure, liquidation, or mitigation under this 
                section, the totals of each of the amounts described in 
                clauses (i) through (v) of subparagraph (A).
                    ``(D) A comparison between--
                          ``(i) the information provided under 
                      subparagraph (C) with respect to the 12-month 
                      period preceding the date on which the report is 
                      submitted; and
                          ``(ii) the same information with respect to 
                      loans foreclosed and liquidated, or otherwise 
                      treated, by the Administration during the same 
                      period.
                    ``(E) The number of times that the Administration 
                has failed to approve or reject a liquidation plan in 
                accordance with subparagraph (A)(i), a workout plan in 
                accordance with subparagraph (C)(i), or to approve or 
                deny a request for purchase of indebtedness under 
                subparagraph (B)(i), including specific information 
                regarding the reasons for the Administration's failure 
                and any delays that resulted.''.

    (b) Regulations.--
            (1) In general.--Not later than 150 days after the date of 
        the enactment of this Act, the Administrator shall issue such 
        regulations as may be necessary to carry out section 510 of the 
        Small Business Investment Act of 1958, as added by subsection 
        (a) of this section.
            (2) Termination of pilot program.--Beginning on the date on 
        which final regulations are issued under paragraph (1), section 
        204 of the Small Business Programs Improvement Act of 1996 (15 
        U.S.C. 695 note) shall cease to have effect.

[[Page 114 STAT. 2763A-690]]

   TITLE IV--CORRECTIONS TO THE SMALL BUSINESS INVESTMENT ACT OF 1958

SEC. 401. SHORT TITLE.

    This title may be cited as the ``Small Business Investment 
Corrections Act of 2000''.

SEC. 402. DEFINITIONS.

    (a) Small Business Concern.--Section 103(5)(A)(i) of the Small 
Business Investment Act of 1958 (15 U.S.C. 662(5)(A)(i)) is amended by 
inserting before the semicolon at the end the following: ``regardless of 
the allocation of control during the investment period under any 
investment agreement between the business concern and the entity making 
the investment''.
    (b) Long Term.--Section 103 of the Small Business Investment Act of 
1958 (15 U.S.C. 662) is amended--
            (1) in paragraph (15), by striking ``and'' at the end;
            (2) in paragraph (16), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(17) the term `long term', when used in connection with 
        equity capital or loan funds invested in any small business 
        concern or smaller enterprise, means any period of time not less 
        than 1 year.''.

SEC. 403. INVESTMENT IN SMALL BUSINESS INVESTMENT COMPANIES.

    Section 302(b) of the Small Business Investment Act of 1958 (15 
U.S.C. 682(b)) is amended--
            (1) by striking ``(b) Notwithstanding'' and inserting the 
        following:

    ``(b) Financial Institution Investments.--
            ``(1) Certain banks.--Notwithstanding''; and
            (2) by adding at the end the following:
            ``(2) Certain savings associations.--Notwithstanding any 
        other provision of law, any Federal savings association may 
        invest in any one or more small business investment companies, 
        or in any entity established to invest solely in small business 
        investment companies, except that in no event may the total 
        amount of such investments by any such Federal savings 
        association exceed 5 percent of the capital and surplus of the 
        Federal savings association.''.

SEC. 404. SUBSIDY FEES.

    (a) Debentures.--Section 303(b) of the Small Business Investment Act 
of 1958 (15 U.S.C. 683(b)) is amended by striking ``plus an additional 
charge of 1 percent per annum which shall be paid to and retained by the 
Administration'' and inserting ``plus, for debentures obligated after 
September 30, 2000, an additional charge, in an amount established 
annually by the Administration, of not more than 1 percent per year as 
necessary to reduce to zero the cost (as defined in section 502 of the 
Federal Credit Reform Act of 1990 (2 U.S.C. 661a)) to the Administration 
of purchasing and guaranteeing debentures under this Act, which shall be 
paid to and retained by the Administration''.

[[Page 114 STAT. 2763A-691]]

    (b) Participating Securities.--Section 303(g)(2) of the Small 
Business Investment Act of 1958 (15 U.S.C. 683(g)(2)) is amended by 
striking ``plus an additional charge of 1 percent per annum which shall 
be paid to and retained by the Administration'' and inserting ``plus, 
for participating securities obligated after September 30, 2000, an 
additional charge, in an amount established annually by the 
Administration, of not more than 1 percent per year as necessary to 
reduce to zero the cost (as defined in section 502 of the Federal Credit 
Reform Act of 1990 (2 U.S.C. 661a)) to the Administration of purchasing 
and guaranteeing participating securities under this Act, which shall be 
paid to and retained by the Administration''.

SEC. 405. DISTRIBUTIONS.

    Section 303(g)(8) of the Small Business Investment Act of 1958 (15 
U.S.C. 683(g)(8)) is amended--
            (1) by striking ``subchapter s corporation'' and inserting 
        ``subchapter S corporation'';
            (2) by striking ``the end of any calendar quarter based on a 
        quarterly'' and inserting ``any time during any calendar quarter 
        based on an''; and
            (3) by striking ``quarterly distributions for a calendar 
        year,'' and inserting ``interim distributions for a calendar 
        year,''.

SEC. 406. CONFORMING AMENDMENT.

    Section 310(c)(4) of the Small Business Investment Act of 1958 (15 
U.S.C. 687b(c)(4)) is amended by striking ``five years'' and inserting 
``1 year''.

           TITLE V--REAUTHORIZATION OF SMALL BUSINESS PROGRAMS

SEC. 501. SHORT TITLE.

    This title may be cited as the ``Small Business Programs 
Reauthorization Act of 2000''.

SEC. 502. REAUTHORIZATION OF SMALL BUSINESS PROGRAMS.

    Section 20 of the Small Business Act (15 U.S.C. 631 note) is amended 
by adding at the end the following:
    ``(g) Fiscal Year 2001.--
            ``(1) Program levels.--The following program levels are 
        authorized for fiscal year 2001:
                    ``(A) For the programs authorized by this Act, the 
                Administration is authorized to make--
                          ``(i) $45,000,000 in technical assistance 
                      grants as provided in section 7(m); and
                          ``(ii) $60,000,000 in direct loans, as 
                      provided in 7(m).
                    ``(B) For the programs authorized by this Act, the 
                Administration is authorized to make $19,050,000,000 in 
                deferred participation loans and other financings. Of 
                such sum, the Administration is authorized to make--
                          ``(i) $14,500,000,000 in general business 
                      loans as provided in section 7(a);

[[Page 114 STAT. 2763A-692]]

                          ``(ii) $4,000,000,000 in financings as 
                      provided in section 7(a)(13) of this Act and 
                      section 504 of the Small Business Investment Act 
                      of 1958;
                          ``(iii) $500,000,000 in loans as provided in 
                      section 7(a)(21); and
                          ``(iv) $50,000,000 in loans as provided in 
                      section 7(m).
                    ``(C) For the programs authorized by title III of 
                the Small Business Investment Act of 1958, the 
                Administration is authorized to make--
                          ``(i) $2,500,000,000 in purchases of 
                      participating securities; and
                          ``(ii) $1,500,000,000 in guarantees of 
                      debentures.
                    ``(D) For the programs authorized by part B of title 
                IV of the Small Business Investment Act of 1958, the 
                Administration is authorized to enter into guarantees 
                not to exceed $4,000,000,000 of which not more than 50 
                percent may be in bonds approved pursuant to section 
                411(a)(3) of that Act.
                    ``(E) The Administration is authorized to make 
                grants or enter cooperative agreements for a total 
                amount of $5,000,000 for the Service Corps of Retired 
                Executives program authorized by section 8(b)(1).
            ``(2) Additional authorizations.--
                    ``(A) There are authorized to be appropriated to the 
                Administration for fiscal year 2001 such sums as may be 
                necessary to carry out the provisions of this Act not 
                elsewhere provided for, including administrative 
                expenses and necessary loan capital for disaster loans 
                pursuant to section 7(b), and to carry out title IV of 
                the Small Business Investment Act of 1958, including 
                salaries and expenses of the Administration.
                    ``(B) Notwithstanding any other provision of this 
                paragraph, for fiscal year 2001--
                          ``(i) no funds are authorized to be used as 
                      loan capital for the loan program authorized by 
                      section 7(a)(21) except by transfer from another 
                      Federal department or agency to the 
                      Administration, unless the program level 
                      authorized for general business loans under 
                      paragraph (1)(B)(i) is fully funded; and
                          ``(ii) the Administration may not approve 
                      loans on its own behalf or on behalf of any other 
                      Federal department or agency, by contract or 
                      otherwise, under terms and conditions other than 
                      those specifically authorized under this Act or 
                      the Small Business Investment Act of 1958, except 
                      that it may approve loans under section 7(a)(21) 
                      of this Act in gross amounts of not more than 
                      $1,250,000.

    ``(h) Fiscal Year 2002.--
            ``(1) Program levels.--The following program levels are 
        authorized for fiscal year 2002:
                    ``(A) For the programs authorized by this Act, the 
                Administration is authorized to make--
                          ``(i) $60,000,000 in technical assistance 
                      grants as provided in section 7(m); and
                          ``(ii) $80,000,000 in direct loans, as 
                      provided in 7(m).

[[Page 114 STAT. 2763A-693]]

                    ``(B) For the programs authorized by this Act, the 
                Administration is authorized to make $20,050,000,000 in 
                deferred participation loans and other financings. Of 
                such sum, the Administration is authorized to make--
                          ``(i) $15,000,000,000 in general business 
                      loans as provided in section 7(a);
                          ``(ii) $4,500,000,000 in financings as 
                      provided in section 7(a)(13) of this Act and 
                      section 504 of the Small Business Investment Act 
                      of 1958;
                          ``(iii) $500,000,000 in loans as provided in 
                      section 7(a)(21); and
                          ``(iv) $50,000,000 in loans as provided in 
                      section 7(m).
                    ``(C) For the programs authorized by title III of 
                the Small Business Investment Act of 1958, the 
                Administration is authorized to make--
                          ``(i) $3,500,000,000 in purchases of 
                      participating securities; and
                          ``(ii) $2,500,000,000 in guarantees of 
                      debentures.
                    ``(D) For the programs authorized by part B of title 
                IV of the Small Business Investment Act of 1958, the 
                Administration is authorized to enter into guarantees 
                not to exceed $5,000,000,000 of which not more than 50 
                percent may be in bonds approved pursuant to section 
                411(a)(3) of that Act.
                    ``(E) The Administration is authorized to make 
                grants or enter cooperative agreements for a total 
                amount of $6,000,000 for the Service Corps of Retired 
                Executives program authorized by section 8(b)(1).
            ``(2) Additional authorizations.--
                    ``(A) There are authorized to be appropriated to the 
                Administration for fiscal year 2002 such sums as may be 
                necessary to carry out the provisions of this Act not 
                elsewhere provided for, including administrative 
                expenses and necessary loan capital for disaster loans 
                pursuant to section 7(b), and to carry out title IV of 
                the Small Business Investment Act of 1958, including 
                salaries and expenses of the Administration.
                    ``(B) Notwithstanding any other provision of this 
                paragraph, for fiscal year 2002--
                          ``(i) no funds are authorized to be used as 
                      loan capital for the loan program authorized by 
                      section 7(a)(21) except by transfer from another 
                      Federal department or agency to the 
                      Administration, unless the program level 
                      authorized for general business loans under 
                      paragraph (1)(B)(i) is fully funded; and
                          ``(ii) the Administration may not approve 
                      loans on its own behalf or on behalf of any other 
                      Federal department or agency, by contract or 
                      otherwise, under terms and conditions other than 
                      those specifically authorized under this Act or 
                      the Small Business Investment Act of 1958, except 
                      that it may approve loans under section 7(a)(21) 
                      of this Act in gross amounts of not more than 
                      $1,250,000.

    ``(i) Fiscal Year 2003.--
            ``(1) Program levels.--The following program levels are 
        authorized for fiscal year 2003:

[[Page 114 STAT. 2763A-694]]

                    ``(A) For the programs authorized by this Act, the 
                Administration is authorized to make--
                          ``(i) $70,000,000 in technical assistance 
                      grants as provided in section 7(m); and
                          ``(ii) $100,000,000 in direct loans, as 
                      provided in 7(m).
                    ``(B) For the programs authorized by this Act, the 
                Administration is authorized to make $21,550,000,000 in 
                deferred participation loans and other financings. Of 
                such sum, the Administration is authorized to make--
                          ``(i) $16,000,000,000 in general business 
                      loans as provided in section 7(a);
                          ``(ii) $5,000,000,000 in financings as 
                      provided in section 7(a)(13) of this Act and 
                      section 504 of the Small Business Investment Act 
                      of 1958;
                          ``(iii) $500,000,000 in loans as provided in 
                      section 7(a)(21); and
                          ``(iv) $50,000,000 in loans as provided in 
                      section 7(m).
                    ``(C) For the programs authorized by title III of 
                the Small Business Investment Act of 1958, the 
                Administration is authorized to make--
                          ``(i) $4,000,000,000 in purchases of 
                      participating securities; and
                          ``(ii) $3,000,000,000 in guarantees of 
                      debentures.
                    ``(D) For the programs authorized by part B of title 
                IV of the Small Business Investment Act of 1958, the 
                Administration is authorized to enter into guarantees 
                not to exceed $6,000,000,000 of which not more than 50 
                percent may be in bonds approved pursuant to section 
                411(a)(3) of that Act.
                    ``(E) The Administration is authorized to make 
                grants or enter into cooperative agreements for a total 
                amount of $7,000,000 for the Service Corps of Retired 
                Executives program authorized by section 8(b)(1).
            ``(2) Additional authorizations.--
                    ``(A) There are authorized to be appropriated to the 
                Administration for fiscal year 2003 such sums as may be 
                necessary to carry out the provisions of this Act not 
                elsewhere provided for, including administrative 
                expenses and necessary loan capital for disaster loans 
                pursuant to section 7(b), and to carry out title IV of 
                the Small Business Investment Act of 1958, including 
                salaries and expenses of the Administration.
                    ``(B) Notwithstanding any other provision of this 
                paragraph, for fiscal year 2003--
                          ``(i) no funds are authorized to be used as 
                      loan capital for the loan program authorized by 
                      section 7(a)(21) except by transfer from another 
                      Federal department or agency to the 
                      Administration, unless the program level 
                      authorized for general business loans under 
                      paragraph (1)(B)(i) is fully funded; and
                          ``(ii) the Administration may not approve 
                      loans on its own behalf or on behalf of any other 
                      Federal department or agency, by contract or 
                      otherwise, under terms and conditions other than 
                      those specifically

[[Page 114 STAT. 2763A-695]]

                      authorized under this Act or the Small Business 
                      Investment Act of 1958, except that it may approve 
                      loans under section 7(a)(21) of this Act in gross 
                      amounts of not more than $1,250,000.''.

SEC. 503. ADDITIONAL REAUTHORIZATIONS.

    (a) Drug-Free Workplace Program.--Section 27 of the Small Business 
Act (15 U.S.C. 654) is amended--
            (1) in the section heading, by striking ``drug-free 
        workplace demonstration program'' and inserting ``paul d. 
        coverdell drug-free workplace program''; and
            (2) in subsection (g)(1), by striking ``$10,000,000 for 
        fiscal years 1999 and 2000'' and inserting ``$5,000,000 for each 
        of fiscal years 2001 through 2003''.

    (b) HUBZone Program.--Section 31 of the Small Business Act (15 
U.S.C. 657a) is amended by adding at the end the following:
    ``(d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out the program established by this section 
$10,000,000 for each of fiscal years 2001 through 2003.''.
    (c) Very Small Business Concerns Program.--Section 304(i) of the 
Small Business Administration Reauthorization and Amendments Act of 1994 
(Public Law 103-403; 15 U.S.C. 644 note) is amended by striking 
``September 30, 2000'' and inserting ``September 30, 2003''.
    (d) Socially and Economically Disadvantaged Businesses Program.--
Section 7102(c) of the Federal Acquisition Streamlining Act of 1994 
(Public Law 103-355; 15 U.S.C. 644 note) is amended by striking 
``September 30, 2000'' and inserting ``September 30, 2003''.
    (e) SBDC Services.--Section 21(c)(3)(T) of the Small Business Act 
(15 U.S.C. 648(c)(3)(T)) is amended by striking ``2000'' and inserting 
``2003''.

SEC. 504. COSPONSORSHIP.

    (a) In General.--Section 8(b)(1)(A) of the Small Business Act (15 
U.S.C. 637(b)(1)(A)) is amended to read as follows:
            ``(1)(A) to provide--
                    ``(i) technical, managerial, and informational aids 
                to small business concerns--
                          ``(I) by advising and counseling on matters in 
                      connection with Government procurement and 
                      policies, principles, and practices of good 
                      management;
                          ``(II) by cooperating and advising with--
                                    ``(aa) voluntary business, 
                                professional, educational, and other 
                                nonprofit organizations, associations, 
                                and institutions (except that the 
                                Administration shall take such actions 
                                as it determines necessary to ensure 
                                that such cooperation does not 
                                constitute or imply an endorsement by 
                                the Administration of the organization 
                                or its products or services, and shall 
                                ensure that it receives appropriate 
                                recognition in all printed materials); 
                                and
                                    ``(bb) other Federal and State 
                                agencies;
                          ``(III) by maintaining a clearinghouse for 
                      information on managing, financing, and operating 
                      small business enterprises; and

[[Page 114 STAT. 2763A-696]]

                          ``(IV) by disseminating such information, 
                      including through recognition events, and by other 
                      activities that the Administration determines to 
                      be appropriate; and
                    ``(ii) through cooperation with a profit-making 
                concern (referred to in this paragraph as a 
                `cosponsor'), training, information, and education to 
                small business concerns, except that the Administration 
                shall--
                          ``(I) take such actions as it determines to be 
                      appropriate to ensure that--
                                    ``(aa) the Administration receives 
                                appropriate recognition and publicity;
                                    ``(bb) the cooperation does not 
                                constitute or imply an endorsement by 
                                the Administration of any product or 
                                service of the cosponsor;
                                    ``(cc) unnecessary promotion of the 
                                products or services of the cosponsor is 
                                avoided; and
                                    ``(dd) utilization of any one 
                                cosponsor in a marketing area is 
                                minimized; and
                          ``(II) develop an agreement, executed on 
                      behalf of the Administration by an employee of the 
                      Administration in Washington, the District of 
                      Columbia, that provides, at a minimum, that--
                                    ``(aa) any printed material to 
                                announce the cosponsorship or to be 
                                distributed at the cosponsored activity, 
                                shall be approved in advance by the 
                                Administration;
                                    ``(bb) the terms and conditions of 
                                the cooperation shall be specified;
                                    ``(cc) only minimal charges may be 
                                imposed on any small business concern to 
                                cover the direct costs of providing the 
                                assistance;
                                    ``(dd) the Administration may 
                                provide to the cosponsorship mailing 
                                labels, but not lists of names and 
                                addresses of small business concerns 
                                compiled by the Administration;
                                    ``(ee) all printed materials 
                                containing the names of both the 
                                Administration and the cosponsor shall 
                                include a prominent disclaimer that the 
                                cooperation does not constitute or imply 
                                an endorsement by the Administration of 
                                any product or service of the cosponsor; 
                                and
                                    ``(ff) the Administration shall 
                                ensure that it receives appropriate 
                                recognition in all cosponsorship printed 
                                materials.''.

    (b) Extension of Cosponsorship Authority.--Section 401(a)(2) of the 
Small Business Administration Reauthorization and Amendments Act of 1994 
(15 U.S.C. 637 note) is amended by striking ``September 30, 2000'' and 
inserting ``September 30, 2003''.

[[Page 114 STAT. 2763A-697]]

                        TITLE VI--HUBZONE PROGRAM

                 Subtitle A--HUBZones in Native America

SEC. 601. SHORT TITLE.

    This subtitle may be cited as the ``HUBZones in Native America Act 
of 2000''.

SEC. 602. HUBZONE SMALL BUSINESS CONCERN.

    Section 3(p)(3) of the Small Business Act (15 U.S.C. 632(p)(3)) is 
amended to read as follows:
            ``(3) Hubzone small business concern.--The term `HUBZone 
        small business concern' means--
                    ``(A) a small business concern that is owned and 
                controlled by one or more persons, each of whom is a 
                United States citizen;
                    ``(B) a small business concern that is--
                          ``(i) an Alaska Native Corporation owned and 
                      controlled by Natives (as determined pursuant to 
                      section 29(e)(1) of the Alaska Native Claims 
                      Settlement Act (43 U.S.C. 1626(e)(1))); or
                          ``(ii) a direct or indirect subsidiary 
                      corporation, joint venture, or partnership of an 
                      Alaska Native Corporation qualifying pursuant to 
                      section 29(e)(1) of the Alaska Native Claims 
                      Settlement Act (43 U.S.C. 1626(e)(1)), if that 
                      subsidiary, joint venture, or partnership is owned 
                      and controlled by Natives (as determined pursuant 
                      to section 29(e)(2)) of the Alaska Native Claims 
                      Settlement Act (43 U.S.C. 1626(e)(2))); or
                    ``(C) a small business concern--
                          ``(i) that is wholly owned by one or more 
                      Indian tribal governments, or by a corporation 
                      that is wholly owned by one or more Indian tribal 
                      governments; or
                          ``(ii) that is owned in part by one or more 
                      Indian tribal governments, or by a corporation 
                      that is wholly owned by one or more Indian tribal 
                      governments, if all other owners are either United 
                      States citizens or small business concerns.''.

SEC. 603. QUALIFIED HUBZONE SMALL BUSINESS CONCERN.

    (a) In General.--Section 3(p)(5)(A)(i) of the Small Business Act (15 
U.S.C. 632(p)(5)(A)(i)) is amended by striking subclauses (I) and (II) 
and inserting the following:
                                    ``(I) it is a HUBZone small business 
                                concern--
                                            ``(aa) pursuant to 
                                        subparagraph (A) or (B) of 
                                        paragraph (3), and that its 
                                        principal office is located in a 
                                        HUBZone and not fewer than 35 
                                        percent of its employees reside 
                                        in a HUBZone; or
                                            ``(bb) pursuant to paragraph 
                                        (3)(C), and not fewer than 35 
                                        percent of its employees engaged 
                                        in performing a contract awarded 
                                        to the small business concern on 
                                        the basis of a preference 
                                        provided under section 31(b) 
                                        reside within any Indian 
                                        reservation governed

[[Page 114 STAT. 2763A-698]]

                                        by one or more of the tribal 
                                        government owners, or reside 
                                        within any HUBZone adjoining any 
                                        such Indian reservation;
                                    ``(II) the small business concern 
                                will attempt to maintain the applicable 
                                employment percentage under subclause 
                                (I) during the performance of any 
                                contract awarded to the small business 
                                concern on the basis of a preference 
                                provided under section 31(b); and''.

    (b) Clarifying Amendment.--Section 3(p)(5)(D)(i) of the Small 
Business Act (15 U.S.C. 632(p)(5)(D)(i)) is amended by inserting ``once 
the Administrator has made the certification required by subparagraph 
(A)(i) regarding a qualified HUBZone small business concern and has 
determined that subparagraph (A)(ii) does not apply to that concern,'' 
before ``include''.

SEC. 604. OTHER DEFINITIONS.

    Section 3(p) of the Small Business Act (15 U.S.C. 632(p)) is amended 
by adding at the end the following:
            ``(6) Native american small business concerns.--
                    ``(A) Alaska native corporation.--The term `Alaska 
                Native Corporation' has the same meaning as the term 
                `Native Corporation' in section 3 of the Alaska Native 
                Claims Settlement Act (43 U.S.C. 1602).
                    ``(B) Alaska native village.--The term `Alaska 
                Native Village' has the same meaning as the term `Native 
                village' in section 3 of the Alaska Native Claims 
                Settlement Act (43 U.S.C. 1602).
                    ``(C) Indian reservation.--The term `Indian 
                reservation'--
                          ``(i) has the same meaning as the term `Indian 
                      country' in section 1151 of title 18, United 
                      States Code, except that such term does not 
                      include--
                                    ``(I) any lands that are located 
                                within a State in which a tribe did not 
                                exercise governmental jurisdiction on 
                                the date of the enactment of this 
                                paragraph, unless that tribe is 
                                recognized after that date of the 
                                enactment by either an Act of Congress 
                                or pursuant to regulations of the 
                                Secretary of the Interior for the 
                                administrative recognition that an 
                                Indian group exists as an Indian tribe 
                                (part 83 of title 25, Code of Federal 
                                Regulations); and
                                    ``(II) lands taken into trust or 
                                acquired by an Indian tribe after the 
                                date of the enactment of this paragraph 
                                if such lands are not located within the 
                                external boundaries of an Indian 
                                reservation or former reservation or are 
                                not contiguous to the lands held in 
                                trust or restricted status on that date 
                                of the enactment; and
                          ``(ii) in the State of Oklahoma, means lands 
                      that--
                                    ``(I) are within the jurisdictional 
                                areas of an Oklahoma Indian tribe (as 
                                determined by the Secretary of the 
                                Interior); and
                                    ``(II) are recognized by the 
                                Secretary of the Interior as eligible 
                                for trust land status under part 151 of 
                                title 25, Code of Federal Regulations

[[Page 114 STAT. 2763A-699]]

                                (as in effect on the date of the 
                                enactment of this paragraph).''.

                  Subtitle B--Other HUBZone Provisions

SEC. 611. DEFINITIONS.

    (a) Qualified Census Tract.--Section 3(p)(4)(A) of the Small 
Business Act (15 U.S.C. 632(p)(4)(A)) is amended by striking ``(I)''.
    (b) Qualified Nonmetropolitan County.--Section 3(p)(4) of the Small 
Business Act (15 U.S.C. 632(p)(4)) is amended by striking subparagraph 
(B) and inserting the following:
                    ``(B) Qualified nonmetropolitan county.--The term 
                `qualified nonmetropolitan county' means any county--
                          ``(i) that was not located in a metropolitan 
                      statistical area (as defined in section 
                      143(k)(2)(B) of the Internal Revenue Code of 1986) 
                      at the time of the most recent census taken for 
                      purposes of selecting qualified census tracts 
                      under section 42(d)(5)(C)(ii) of the Internal 
                      Revenue Code of 1986; and
                          ``(ii) in which--
                                    ``(I) the median household income is 
                                less than 80 percent of the 
                                nonmetropolitan State median household 
                                income, based on the most recent data 
                                available from the Bureau of the Census 
                                of the Department of Commerce; or
                                    ``(II) the unemployment rate is not 
                                less than 140 percent of the Statewide 
                                average unemployment rate for the State 
                                in which the county is located, based on 
                                the most recent data available from the 
                                Secretary of Labor.''.

SEC. 612. ELIGIBLE CONTRACTS.

    (a) Commodities Contracts.--Section 31(b)(3) of the Small Business 
Act (15 U.S.C. 657a(b)(3)) is amended--
            (1) by striking ``In any'' and inserting the following:
                    ``(A) In general.--Subject to subparagraph (B), in 
                any''; and
            (2) by adding at the end the following:
                    ``(B) Procurement of commodities.--For purchases by 
                the Secretary of Agriculture of agricultural 
                commodities, the price evaluation preference shall be--
                          ``(i) 10 percent, for the portion of a 
                      contract to be awarded that is not greater than 25 
                      percent of the total volume being procured for 
                      each commodity in a single invitation;
                          ``(ii) 5 percent, for the portion of a 
                      contract to be awarded that is greater than 25 
                      percent, but not greater than 40 percent, of the 
                      total volume being procured for each commodity in 
                      a single invitation; and
                          ``(iii) zero, for the portion of a contract to 
                      be awarded that is greater than 40 percent of the 
                      total volume being procured for each commodity in 
                      a single invitation.
                    ``(C) Treatment of preference.--A contract awarded 
                to a HUBZone small business concern under a preference

[[Page 114 STAT. 2763A-700]]

                described in subparagraph (B) shall not be counted 
                toward the fulfillment of any requirement partially set 
                aside for competition restricted to small business 
                concerns.''.

    (b) Definitions.--Section 3(p) of the Small Business Act (15 U.S.C. 
632(p)), as amended by this Act, is amended--
            (1) in paragraph (5)(A)(i)(III)--
                    (A) in item (aa), by striking ``and'' at the end; 
                and
                    (B) by adding at the end the following:
                                            ``(cc) in the case of a 
                                        contract for the procurement by 
                                        the Secretary of Agriculture of 
                                        agricultural commodities, none 
                                        of the commodity being procured 
                                        will be obtained by the prime 
                                        contractor through a subcontract 
                                        for the purchase of the 
                                        commodity in substantially the 
                                        final form in which it is to be 
                                        supplied to the Government; 
                                        and''; and
            (2) by adding at the end the following:
            ``(7) Agricultural commodity.--The term `agricultural 
        commodity' has the same meaning as in section 102 of the 
        Agricultural Trade Act of 1978 (7 U.S.C. 5602).''.

SEC. 613. HUBZONE REDESIGNATED AREAS.

    Section 3(p) of the Small Business Act (15 U.S.C. 632(p)) is 
amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (B), by striking ``or'' at the 
                end;
                    (B) in subparagraph (C), by striking the period at 
                the end and inserting ``; or''; and
                    (C) by adding at the end the following:
                    ``(D) redesignated areas.''; and
            (2) in paragraph (4), by adding at the end the following:
                    ``(C) Redesignated area.--The term `redesignated 
                area' means any census tract that ceases to be qualified 
                under subparagraph (A) and any nonmetropolitan county 
                that ceases to be qualified under subparagraph (B), 
                except that a census tract or a nonmetropolitan county 
                may be a `redesignated area' only for the 3-year period 
                following the date on which the census tract or 
                nonmetropolitan county ceased to be so qualified.''.

SEC. 614. COMMUNITY DEVELOPMENT.

    Section 3(p) of the Small Business Act (15 U.S.C. 632(p)), as 
amended by this Act, is amended--
            (1) in paragraph (3)--
                    (A) in subparagraph (B), by striking ``or'' at the 
                end;
                    (B) in subparagraph (C), by striking the period at 
                the end and inserting ``; or''; and
                    (C) by adding at the end the following:
                    ``(D) a small business concern that is--
                          ``(i) wholly owned by a community development 
                      corporation that has received financial assistance 
                      under part 1 of subchapter A of the Community 
                      Economic Development Act of 1981 (42 U.S.C. 9805 
                      et seq.); or
                          ``(ii) owned in part by one or more community 
                      development corporations, if all other owners are 
                      either United States citizens or small business 
                      concerns.''; and

[[Page 114 STAT. 2763A-701]]

            (2) in paragraph (5)(A)(i)(I)(aa), by striking 
        ``subparagraph (A) or (B)'' and inserting ``subparagraph (A), 
        (B), or (D)''.

SEC. 615. REFERENCE CORRECTIONS.

    (a) Section 3.--Section 3(p)(5)(C) of the Small Business Act (15 
U.S.C. 632(p)(5)(C)) is amended by striking ``subclause (IV) and (V) of 
subparagraph (A)(i)'' and inserting ``items (aa) and (bb) of 
subparagraph (A)(i)(III)''.
    (b) Section 8.--Section 8(d)(4)(D) of the Small Business Act (15 
U.S.C. 637(d)(4)(D)) is amended by inserting ``qualified HUBZone small 
business concerns,'' after ``small business concerns,''.

      TITLE VII--NATIONAL WOMEN'S BUSINESS COUNCIL REAUTHORIZATION

SEC. 701. SHORT TITLE.

    This title may be cited as the ``National Women's Business Council 
Reauthorization Act of 2000''.

SEC. 702. MEMBERSHIP OF THE COUNCIL.

    Section 407 of the Women's Business Ownership Act of 1988 (15 U.S.C. 
631 note) is amended--
            (1) in subsection (a), by striking ``Not later'' and all 
        that follows through ``the President'' and inserting ``The 
        President'';
            (2) in subsection (b)--
                    (A) by striking ``Not later'' and all that follows 
                through ``the Administrator'' and inserting ``The 
                Administrator''; and
                    (B) by striking ``the Assistant Administrator of the 
                Office of Women's Business Ownership and'';
            (3) in subsection (d), by striking ``, except that'' and all 
        that follows through the end of the subsection and inserting a 
        period; and
            (4) in subsection (h), by striking ``Not later'' and all 
        that follows through ``the Administrator'' and inserting ``The 
        Administrator''.

SEC. 703. REPEAL OF PROCUREMENT PROJECT.

    Section 409 of the Women's Business Ownership Act of 1988 (15 U.S.C. 
631 note) is repealed.

SEC. 704. STUDIES AND OTHER RESEARCH.

    Section 410 of the Women's Business Ownership Act of 1988 (15 U.S.C. 
631 note) is amended to read as follows:

``SEC. 409. STUDIES AND OTHER RESEARCH.

    ``(a) In General.--The Council may conduct such studies and other 
research relating to the award of Federal prime contracts and 
subcontracts to women-owned businesses, to access to credit and 
investment capital by women entrepreneurs, or to other issues relating 
to women-owned businesses, as the Council determines to be appropriate.
    ``(b) Contract Authority.--In conducting any study or other research 
under this section, the Council may contract with one or more public or 
private entities.''.

[[Page 114 STAT. 2763A-702]]

SEC. 705. AUTHORIZATION OF APPROPRIATIONS.

    Section 411 of the Women's Business Ownership Act of 1988 (15 U.S.C. 
631 note) is amended to read as follows:

``SEC. 410. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There is authorized to be appropriated to carry 
out this title $1,000,000, for each of fiscal years 2001 through 2003, 
of which $550,000 shall be available in each such fiscal year to carry 
out section 409.
    ``(b) Budget Review.--No amount made available under this section 
for any fiscal year may be obligated or expended by the Council before 
the date on which the Council reviews and approves the operating budget 
of the Council to carry out the responsibilities of the Council for that 
fiscal year.''.

                  TITLE VIII--MISCELLANEOUS PROVISIONS

SEC. 801. LOAN APPLICATION PROCESSING.

    (a) Study.--The Administrator of the Small Business Administration 
shall conduct a study to determine the average time that the 
Administration requires to process an application for each type of loan 
or loan guarantee made under the Small Business Act (15 U.S.C. 631 et 
seq.).
    (b) Transmittal.--Not later than 1 year after the date of the 
enactment of this Act, the Administrator shall transmit to Congress the 
results of the study conducted under subsection (a).

SEC. 802. APPLICATION OF OWNERSHIP REQUIREMENTS.

    (a) Small Business Act.--Section 7(a) of the Small Business Act (15 
U.S.C. 636(a)) is amended by adding at the end the following:
            ``(30) Ownership requirements.--Ownership requirements to 
        determine the eligibility of a small business concern that 
        applies for assistance under any credit program under this Act 
        shall be determined without regard to any ownership interest of 
        a spouse arising solely from the application of the community 
        property laws of a State for purposes of determining marital 
        interests.''.

    (b) Small Business Investment Act of 1958.--Section 502 of the Small 
Business Investment Act of 1958 (15 U.S.C. 696) is amended by adding at 
the end the following:
            ``(6) Ownership requirements.--Ownership requirements to 
        determine the eligibility of a small business concern that 
        applies for assistance under any credit program under this title 
        shall be determined without regard to any ownership interest of 
        a spouse arising solely from the application of the community 
        property laws of a State for purposes of determining marital 
        interests.''.

SEC. 803. SUBCONTRACTING PREFERENCE FOR VETERANS.

    Section 8(d) of the Small Business Act (15 U.S.C. 637(d)) is 
amended--

[[Page 114 STAT. 2763A-703]]

            (1) in paragraph (1), by inserting ``small business concerns 
        owned and controlled by veterans,'' after ``small business 
        concerns,'' the first place that term appears in each of the 
        first and second sentences;
            (2) in paragraph (3)--
                    (A) in subparagraph (A), by inserting ``small 
                business concerns owned and controlled by service-
                disabled veterans,'' after ``small business concerns 
                owned and controlled by veterans,'' in each of the first 
                and second sentences; and
                    (B) in subparagraph (F), by inserting ``small 
                business concern owned and controlled by service-
                disabled veterans,'' after ``small business concern 
                owned and controlled by veterans,''; and
            (3) in each of paragraphs (4)(D), (4)(E), (6)(A), (6)(C), 
        (6)(F), and (10)(B), by inserting ``small business concerns 
        owned and controlled by service-disabled veterans,'' after 
        ``small business concerns owned and controlled by veterans,''.

SEC. 804. SMALL BUSINESS DEVELOPMENT CENTER PROGRAM FUNDING.

    (a) Authorization.--
            (1) In general.--Section 20(a)(1) of the Small Business Act 
        (15 U.S.C. 631 note) is amended by striking ``For fiscal year 
        1985'' and all that follows through ``expended.'' and inserting 
        the following: ``For fiscal year 2000 and each fiscal year 
        thereafter, there are authorized to be appropriated such sums as 
        may be necessary and appropriate, to remain available until 
        expended, and to be available solely--
            ``(A) to carry out the Small Business Development Center 
        Program under section 21, but not to exceed the annual funding 
        level, as specified in section 21(a);
            ``(B) to pay the expenses of the National Small Business 
        Development Center Advisory Board, as provided in section 21(i);
            ``(C) to pay the expenses of the information sharing system, 
        as provided in section 21(c)(8);
            ``(D) to pay the expenses of the association referred to in 
        section 21(a)(3)(A) for conducting the certification program, as 
        provided in section 21(k)(2); and
            ``(E) to pay the expenses of the Administration, including 
        salaries of examiners, for conducting examinations as part of 
        the certification program conducted by the association referred 
        to in section 21(a)(3)(A).''.
            (2) Technical amendment.--Section 20(a) of the Small 
        Business Act (15 U.S.C. 631 note) is amended by moving the 
        margins of paragraphs (3) and (4), including subparagraphs (A) 
        and (B) of paragraph (4), 2 ems to the left.

    (b) Funding Formula.--Section 21(a)(4)(C) of the Small Business Act 
(15 U.S.C. 648(a)(4)(C)) is amended to read as follows:
            ``(C) Funding formula.--
                    ``(i) In general.--Subject to clause (iii), the 
                amount of a formula grant received by a State under this 
                subparagraph shall be equal to an amount determined in 
                accordance with the following formula:
                          ``(I) The annual amount made available under 
                      section 20(a) for the Small Business Development 
                      Center

[[Page 114 STAT. 2763A-704]]

                      Program, less any reductions made for expenses 
                      authorized by clause (v) of this subparagraph, 
                      shall be divided on a pro rata basis, based on the 
                      percentage of the population of each State, as 
                      compared to the population of the United States.
                          ``(II) If the pro rata amount calculated under 
                      subclause (I) for any State is less than the 
                      minimum funding level under clause (iii), the 
                      Administration shall determine the aggregate 
                      amount necessary to achieve that minimum funding 
                      level for each such State.
                          ``(III) The aggregate amount calculated under 
                      subclause (II) shall be deducted from the amount 
                      calculated under subclause (I) for States eligible 
                      to receive more than the minimum funding level. 
                      The deductions shall be made on a pro rata basis, 
                      based on the population of each such State, as 
                      compared to the total population of all such 
                      States.
                          ``(IV) The aggregate amount deducted under 
                      subclause (III) shall be added to the grants of 
                      those States that are not eligible to receive more 
                      than the minimum funding level in order to achieve 
                      the minimum funding level for each such State, 
                      except that the eligible amount of a grant to any 
                      State shall not be reduced to an amount below the 
                      minimum funding level.
                    ``(ii) Grant determination.--The amount of a grant 
                that a State is eligible to apply for under this 
                subparagraph shall be the amount determined under clause 
                (i), subject to any modifications required under clause 
                (iii), and shall be based on the amount available for 
                the fiscal year in which performance of the grant 
                commences, but not including amounts distributed in 
                accordance with clause (iv). The amount of a grant 
                received by a State under any provision of this 
                subparagraph shall not exceed the amount of matching 
                funds from sources other than the Federal Government, as 
                required under subparagraph (A).
                    ``(iii) Minimum funding level.--The amount of the 
                minimum funding level for each State shall be determined 
                for each fiscal year based on the amount made available 
                for that fiscal year to carry out this section, as 
                follows:
                          ``(I) If the amount made available is not less 
                      than $81,500,000 and not more than $90,000,000, 
                      the minimum funding level shall be $500,000.
                          ``(II) If the amount made available is less 
                      than $81,500,000, the minimum funding level shall 
                      be the remainder of $500,000 minus a percentage of 
                      $500,000 equal to the percentage amount by which 
                      the amount made available is less than 
                      $81,500,000.
                          ``(III) If the amount made available is more 
                      than $90,000,000, the minimum funding level shall 
                      be the sum of $500,000 plus a percentage of 
                      $500,000 equal to the percentage amount by which 
                      the amount made available exceeds $90,000,000.
                    ``(iv) Distributions.--Subject to clause (iii), if 
                any State does not apply for, or use, its full funding 
                eligibility for a fiscal year, the Administration shall 
                distribute the remaining funds as follows:

[[Page 114 STAT. 2763A-705]]

                          ``(I) If the grant to any State is less than 
                      the amount received by that State in fiscal year 
                      2000, the Administration shall distribute such 
                      remaining funds, on a pro rata basis, based on the 
                      percentage of shortage of each such State, as 
                      compared to the total amount of such remaining 
                      funds available, to the extent necessary in order 
                      to increase the amount of the grant to the amount 
                      received by that State in fiscal year 2000, or 
                      until such funds are exhausted, whichever first 
                      occurs.
                          ``(II) If any funds remain after the 
                      application of subclause (I), the remaining amount 
                      may be distributed as supplemental grants to any 
                      State, as the Administration determines, in its 
                      discretion, to be appropriate, after consultation 
                      with the association referred to in subsection 
                      (a)(3)(A).
                    ``(v) Use of amounts.--
                          ``(I) In general.--Of the amounts made 
                      available in any fiscal year to carry out this 
                      section--
                                    ``(aa) not more than $500,000 may be 
                                used by the Administration to pay 
                                expenses enumerated in subparagraphs (B) 
                                through (D) of section 20(a)(1); and
                                    ``(bb) not more than $500,000 may be 
                                used by the Administration to pay the 
                                examination expenses enumerated in 
                                section 20(a)(1)(E).
                          ``(II) Limitation.--No funds described in 
                      subclause (I) may be used for examination expenses 
                      under section 20(a)(1)(E) if the usage would 
                      reduce the amount of grants made available under 
                      clause (i)(I) of this subparagraph to less than 
                      $85,000,000 (after excluding any amounts provided 
                      in appropriations Acts for specific institutions 
                      or for purposes other than the general small 
                      business development center program) or would 
                      further reduce the amount of such grants below 
                      such amount.
                    ``(vi) Exclusions.--Grants provided to a State by 
                the Administration or another Federal agency to carry 
                out subsection (a)(6) or (c)(3)(G), or for supplemental 
                grants set forth in clause (iv)(II) of this 
                subparagraph, shall not be included in the calculation 
                of maximum funding for a State under clause (ii) of this 
                subparagraph.
                    ``(vii) Authorization of appropriations.--There is 
                authorized to be appropriated to carry out this 
                subparagraph $125,000,000 for each of fiscal years 2001, 
                2002, and 2003.
                    ``(viii) State defined.--In this subparagraph, the 
                term `State' means each of the several States, the 
                District of Columbia, the Commonwealth of Puerto Rico, 
                the Virgin Islands, Guam, and American Samoa.''.

SEC. 805. SURETY BONDS.

    (a) Contract Amounts.--Section 411 of the Small Business Investment 
Act of 1958 (15 U.S.C. 694b) is amended--
            (1) in subsection (a)(1), by striking ``$1,250,000'' and 
        inserting ``$2,000,000''; and

[[Page 114 STAT. 2763A-706]]

            (2) in subsection (e)(2), by striking ``$1,250,000'' and 
        inserting ``$2,000,000''.

    (b) Extension of Certain Authority.--Section 207 of the Small 
Business Administration Reauthorization and Amendment Act of 1988 (15 
U.S.C. 694b note) is amended by striking ``2000'' and inserting 
``2003''.

SEC. 806. SIZE STANDARDS.

    (a) Industry Classifications.--Section 15(a) of the Small Business 
Act (15 U.S.C. 644(a)) is amended in the eighth sentence, by striking 
``four-digit standard'' and all that follows through ``published'' and 
inserting ``definition of a `United States industry' under the North 
American Industry Classification System, as established''.
    (b) Annual Receipts.--Section 3(a)(1) of the Small Business Act (15 
U.S.C. 632(a)(1)) is amended by striking ``$500,000'' and inserting 
``$750,000''.

SEC. 807. NATIVE HAWAIIAN ORGANIZATIONS UNDER SECTION 8(a).

    Section 8(a)(15)(A) of the Small Business Act (15 U.S.C. 
637(a)(15)(A)) is amended to read as follows:
            ``(A) is a nonprofit corporation that has filed articles of 
        incorporation with the director (or the designee thereof) of the 
        Hawaii Department of Commerce and Consumer Affairs, or any 
        successor agency,''.

SEC. 808. NATIONAL VETERANS BUSINESS DEVELOPMENT CORPORATION CORRECTION.

    Section 33(k) of the Small Business Act (15 U.S.C. 657c(k)) is 
amended--
            (1) by striking paragraph (1) and inserting the following:
            ``(1) In general.--Subject to paragraph (2), there are 
        authorized to be appropriated to the Corporation to carry out 
        this section--
                    ``(A) $4,000,000 for fiscal year 2001;
                    ``(B) $4,000,000 for fiscal year 2002;
                    ``(C) $2,000,000 for fiscal year 2003; and
                    ``(D) $2,000,000 for fiscal year 2004.'';
            (2) in paragraph (2)(A), by striking ``2001'' each place it 
        appears and inserting ``2002''; and
            (3) in paragraph (2)(B), by striking ``2002 or 2003'' and 
        inserting ``2003 or 2004''.

SEC. 809. PRIVATE SECTOR RESOURCES FOR SCORE.

    Section 8(b)(1)(B) of the Small Business Act (15 U.S.C. 
637(b)(1)(B)) is amended by adding at the end the following: 
``Notwithstanding any other provision of law, SCORE may solicit cash and 
in-kind contributions from the private sector to be used to carry out 
its functions under this Act, and may use payments made by the 
Administration pursuant to this subparagraph for such solicitation.''.

SEC. 810. CONTRACT DATA COLLECTION.

    Section 15 of the Small Business Act (15 U.S.C. 644) is amended by 
adding at the end the following new subsection:
    ``(p) Database, Analysis, and Annual Report With Respect to Bundled 
Contracts.--

[[Page 114 STAT. 2763A-707]]

            ``(1) Bundled contract defined.--In this subsection, the 
        term `bundled contract' has the meaning given such term in 
        section 3(o)(1).
            ``(2) Database.--
                    ``(A) In general.--Not later than 180 days after the 
                date of the enactment of this subsection, the 
                Administrator of the Small Business Administration shall 
                develop and shall thereafter maintain a database 
                containing data and information regarding--
                          ``(i) each bundled contract awarded by a 
                      Federal agency; and
                          ``(ii) each small business concern that has 
                      been displaced as a prime contractor as a result 
                      of the award of such a contract.
            ``(3) Analysis.--For each bundled contract that is to be 
        recompeted as a bundled contract, the Administrator shall 
        determine--
                    ``(A) the amount of savings and benefits (in 
                accordance with subsection (e)) achieved under the 
                bundling of contract requirements; and
                    ``(B) whether such savings and benefits will 
                continue to be realized if the contract remains bundled, 
                and whether such savings and benefits would be greater 
                if the procurement requirements were divided into 
                separate solicitations suitable for award to small 
                business concerns.
            ``(4) Annual report on contract bundling.--
                    ``(A) In general.--Not later than 1 year after the 
                date of the enactment of this paragraph, and annually in 
                March thereafter, the Administration shall transmit a 
                report on contract bundling to the Committees on Small 
                Business of the House of Representatives and the Senate.
                    ``(B) Contents.--Each report transmitted under 
                subparagraph (A) shall include--
                          ``(i) data on the number, arranged by 
                      industrial classification, of small business 
                      concerns displaced as prime contractors as a 
                      result of the award of bundled contracts by 
                      Federal agencies; and
                          ``(ii) a description of the activities with 
                      respect to previously bundled contracts of each 
                      Federal agency during the preceding year, 
                      including--
                                    ``(I) data on the number and total 
                                dollar amount of all contract 
                                requirements that were bundled; and
                                    ``(II) with respect to each bundled 
                                contract, data or information on--
                                            ``(aa) the justification for 
                                        the bundling of contract 
                                        requirements;
                                            ``(bb) the cost savings 
                                        realized by bundling the 
                                        contract requirements over the 
                                        life of the contract;
                                            ``(cc) the extent to which 
                                        maintaining the bundled status 
                                        of contract requirements is 
                                        projected to result in continued 
                                        cost savings;
                                            ``(dd) the extent to which 
                                        the bundling of contract 
                                        requirements complied with the 
                                        contracting agency's small 
                                        business subcontracting plan, 
                                        including the total dollar

[[Page 114 STAT. 2763A-708]]

                                        value awarded to small business 
                                        concerns as subcontractors and 
                                        the total dollar value 
                                        previously awarded to small 
                                        business concerns as prime 
                                        contractors; and
                                            ``(ee) the impact of the 
                                        bundling of contract 
                                        requirements on small business 
                                        concerns unable to compete as 
                                        prime contractors for the 
                                        consolidated requirements and on 
                                        the industries of such small 
                                        business concerns, including a 
                                        description of any changes to 
                                        the proportion of any such 
                                        industry that is composed of 
                                        small business concerns.
            ``(5) Access to data.--
                    ``(A) Federal procurement data system.--To assist in 
                the implementation of this section, the Administration 
                shall have access to information collected through the 
                Federal Procurement Data System.
                    ``(B) Agency procurement data sources.--To assist in 
                the implementation of this section, the head of each 
                contracting agency shall provide, upon request of the 
                Administration, procurement information collected 
                through existing agency data collection sources.''.

SEC. 811. PROCUREMENT PROGRAM FOR WOMEN-OWNED SMALL BUSINESS CONCERNS.

    Section 8 of the Small Business Act (15 U.S.C. 637) is amended by 
adding at the end the following:
    ``(m) Procurement Program for Women-owned Small Business Concerns.--
            ``(1) Definitions.--In this subsection, the following 
        definitions apply:
                    ``(A) Contracting officer.--The term `contracting 
                officer' has the meaning given such term in section 27(f 
                )(5) of the Office of Federal Procurement Policy Act (41 
                U.S.C. 423(f )(5)).
                    ``(B) Small business concern owned and controlled by 
                women.--The term `small business concern owned and 
                controlled by women' has the meaning given such term in 
                section 3(n), except that ownership shall be determined 
                without regard to any community property law.
            ``(2) Authority to restrict competition.--In accordance with 
        this subsection, a contracting officer may restrict competition 
        for any contract for the procurement of goods or services by the 
        Federal Government to small business concerns owned and 
        controlled by women, if--
                    ``(A) each of the concerns is not less than 51 
                percent owned by one or more women who are economically 
                disadvantaged (and such ownership is determined without 
                regard to any community property law);
                    ``(B) the contracting officer has a reasonable 
                expectation that two or more small business concerns 
                owned and controlled by women will submit offers for the 
                contract;
                    ``(C) the contract is for the procurement of goods 
                or services with respect to an industry identified by 
                the Administrator pursuant to paragraph (3);

[[Page 114 STAT. 2763A-709]]

                    ``(D) the anticipated award price of the contract 
                (including options) does not exceed--
                          ``(i) $5,000,000, in the case of a contract 
                      assigned an industrial classification code for 
                      manufacturing; or
                          ``(ii) $3,000,000, in the case of all other 
                      contracts;
                    ``(E) in the estimation of the contracting officer, 
                the contract award can be made at a fair and reasonable 
                price; and
                    ``(F) each of the concerns--
                          ``(i) is certified by a Federal agency, a 
                      State government, or a national certifying entity 
                      approved by the Administrator, as a small business 
                      concern owned and controlled by women; or
                          ``(ii) certifies to the contracting officer 
                      that it is a small business concern owned and 
                      controlled by women and provides adequate 
                      documentation, in accordance with standards 
                      established by the Administration, to support such 
                      certification.
            ``(3) Waiver.--With respect to a small business concern 
        owned and controlled by women, the Administrator may waive 
        subparagraph (2)(A) if the Administrator determines that the 
        concern is in an industry in which small business concerns owned 
        and controlled by women are substantially underrepresented.
            ``(4) Identification of industries.--The Administrator shall 
        conduct a study to identify industries in which small business 
        concerns owned and controlled by women are underrepresented with 
        respect to Federal procurement contracting.
            ``(5) Enforcement; penalties.--
                    ``(A) Verification of eligibility.--In carrying out 
                this subsection, the Administrator shall establish 
                procedures relating to--
                          ``(i) the filing, investigation, and 
                      disposition by the Administration of any challenge 
                      to the eligibility of a small business concern to 
                      receive assistance under this subsection 
                      (including a challenge, filed by an interested 
                      party, relating to the veracity of a certification 
                      made or information provided to the Administration 
                      by a small business concern under paragraph 
                      (2)(F)); and
                          ``(ii) verification by the Administrator of 
                      the accuracy of any certification made or 
                      information provided to the Administration by a 
                      small business concern under paragraph (2)(F).
                    ``(B) Examinations.--The procedures established 
                under subparagraph (A) may provide for program 
                examinations (including random program examinations) by 
                the Administrator of any small business concern making a 
                certification or providing information to the 
                Administrator under paragraph (2)(F).
                    ``(C) Penalties.--In addition to the penalties 
                described in section 16(d), any small business concern 
                that is determined by the Administrator to have 
                misrepresented the status of that concern as a small 
                business concern owned and controlled by women for 
                purposes of this subsection, shall be subject to--

[[Page 114 STAT. 2763A-710]]

                          ``(i) section 1001 of title 18, United States 
                      Code; and
                          ``(ii) sections 3729 through 3733 of title 31, 
                      United States Code.
            ``(6) Provision of data.--Upon the request of the 
        Administrator, the head of any Federal department or agency 
        shall promptly provide to the Administrator such information as 
        the Administrator determines to be necessary to carry out this 
        subsection.''.
```