(2) SPECIFIC
AUTHORITIES.—The Director 
shall be responsible for all safety activities related to 
exploration and development of renewable and min-
eral resources on the Outer Continental Shelf, in-
cluding— 
(A) exploration, development, production, 
and ongoing inspections of infrastructure; 
(B) the suspending or prohibiting, on a 
temporary basis, any operation or activity, in-
cluding production under leases held on the 
Outer Continental Shelf, in accordance with 
section 5(a)(1) of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1334(a)(1)); 
(C) cancelling any lease, permit, or right- 
of-way on the Outer Continental Shelf, in ac-
cordance with section 5(a)(2) of the Outer Con-
tinental 
Shelf 
Lands 
Act 
(43 
U.S.C. 
1334(a)(2)); 
(D) compelling compliance with applicable 
Federal laws and regulations relating to worker 
safety and other matters; 
(E) requiring comprehensive safety and en-
vironmental management programs for persons 
engaged in activities connected with the explo-
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ration, development, and production of mineral 
or renewable energy resources; 
(F) developing and implementing regula-
tions for Federal employees to carry out any in-
spection or investigation to ascertain compli-
ance with applicable regulations, including 
health, safety, or environmental regulations; 
(G) implementing the Offshore Technology 
Research and Risk Assessment Program under 
section 21 of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1347); 
(H) summoning witnesses and directing 
the production of evidence; 
(I) levying fines and penalties and disquali-
fying operators; 
(J) carrying out any safety, response, and 
removal preparedness functions; and 
(K) the processing of permits, exploration 
plans, development plans. 
(d) EMPLOYEES.— 
(1) IN GENERAL.—The Secretary shall ensure 
that the inspection force of the Bureau consists of 
qualified, trained employees who meet qualification 
requirements and adhere to the highest professional 
and ethical standards. 
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(2) QUALIFICATIONS.—The qualification re-
quirements referred to in paragraph (1)— 
(A) shall be determined by the Secretary, 
subject to subparagraph (B); and 
(B) shall include— 
(i) three years of practical experience 
in oil and gas exploration, development, or 
production; or 
(ii) a degree in an appropriate field of 
engineering from an accredited institution 
of higher learning. 
(3) ASSIGNMENT.—In assigning oil and gas in-
spectors to the inspection and investigation of indi-
vidual operations, the Secretary shall give due con-
sideration to the extent possible to their previous ex-
perience in the particular type of oil and gas oper-
ation in which such inspections are to be made. 
(4) BACKGROUND CHECKS.—The Director shall 
require that an individual to be hired as an inspec-
tion officer undergo an employment investigation 
(including a criminal history record check). 
(5) LANGUAGE
REQUIREMENTS.—Individuals 
hired as inspectors must be able to read, speak, and 
write English well enough to— 
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(A) carry out written and oral instructions 
regarding the proper performance of inspection 
duties; and 
(B) write inspection reports and state-
ments and log entries in the English language. 
(6) VETERANS
PREFERENCE.—The Director 
shall provide a preference for the hiring of an indi-
vidual as a inspection officer if the individual is a 
member or former member of the Armed Forces and 
is entitled, under statute, to retired, retirement, or 
retainer pay on account of service as a member of 
the Armed Forces. 
(7) ANNUAL PROFICIENCY REVIEW.— 
(A) ANNUAL PROFICIENCY REVIEW.—The 
Director shall provide that an annual evaluation 
of each individual assigned inspection duties is 
conducted and documented. 
(B) CONTINUATION OF EMPLOYMENT.—An 
individual employed as an inspector may not 
continue to be employed in that capacity unless 
the evaluation demonstrates that the indi-
vidual— 
(i) continues to meet all qualifications 
and standards; 
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(ii) has a satisfactory record of per-
formance and attention to duty based on 
the standards and requirements in the in-
spection program; and 
(iii) demonstrates the current knowl-
edge and skills necessary to courteously, 
vigilantly, and effectively perform inspec-
tion functions. 
(8) LIMITATION ON RIGHT TO STRIKE.—Any 
individual that conducts permitting or inspections 
under this section may not participate in a strike, or 
assert the right to strike. 
(9) PERSONNEL AUTHORITY.—Notwithstanding 
any other provision of law, the Director may employ, 
appoint, discipline and terminate for cause, and fix 
the compensation, terms, and conditions of employ-
ment of Federal service for individuals as the em-
ployees of the Service in order to restore and main-
tain the trust of the people of the United States in 
the accountability of the management of our Na-
tion’s energy safety program. 
(10) TRAINING ACADEMY.— 
(A) IN GENERAL.—The Secretary shall es-
tablish and maintain a National Offshore En-
ergy Safety Academy (referred to in this para-
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graph as the ‘‘Academy’’) as an agency of the 
Ocean Energy Safety Service. 
(B) FUNCTIONS OF ACADEMY.—The Sec-
retary, through the Academy, shall be respon-
sible for— 
(i) the initial and continued training 
of both newly hired and experienced off-
shore oil and gas inspectors in all aspects 
of health, safety, environmental, and oper-
ational inspections; 
(ii) the training of technical support 
personnel of the Bureau; 
(iii) any other training programs for 
offshore oil and gas inspectors, Bureau 
personnel, Department personnel, or other 
persons as the Secretary shall designate; 
and 
(iv) certification of the successful 
completion of training programs for newly 
hired and experienced offshore oil and gas 
inspectors. 
(C) COOPERATIVE AGREEMENTS.— 
(i) IN GENERAL.—In performing func-
tions under this paragraph, and subject to 
clause (ii), the Secretary may enter into 
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cooperative educational and training agree-
ments with educational institutions, related 
Federal academies, other Federal agencies, 
State governments, safety training firms, 
and oil and gas operators and related in-
dustries. 
(ii) TRAINING
REQUIREMENT.—Such 
training shall be conducted by the Acad-
emy in accordance with curriculum needs 
and assignment of instructional personnel 
established by the Secretary. 
(11) USE
OF
DEPARTMENT
PERSONNEL.—In 
performing functions under this subsection, the Sec-
retary shall use, to the extent practicable, the facili-
ties and personnel of the Department of the Interior. 
The Secretary may appoint or assign to the Acad-
emy such officers and employees as the Secretary 
considers necessary for the performance of the du-
ties and functions of the Academy. 
(12) ADDITIONAL TRAINING PROGRAMS.— 
(A) IN
GENERAL.—The Secretary shall 
work with appropriate educational institutions, 
operators, and representatives of oil and gas 
workers to develop and maintain adequate pro-
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grams with educational institutions and oil and 
gas operators that are designed— 
(i) to enable persons to qualify for po-
sitions in the administration of this Act; 
and 
(ii) to provide for the continuing edu-
cation of inspectors or other appropriate 
Department of the Interior personnel. 
(B) FINANCIAL
AND
TECHNICAL
ASSIST-
ANCE.—The Secretary may provide financial 
and technical assistance to educational institu-
tions in carrying out this paragraph. 
(e) LIMITATION.—The Secretary shall not carry out 
through the Service any function, power, or duty that is— 
(1) required by section 402 to be carried out 
through Bureau of Ocean Energy; or 
(2) required by section 404 to be carried out 
through the Office of Natural Resources Revenue. 
SEC. 404. OFFICE OF NATURAL RESOURCES REVENUE. 
(a) ESTABLISHMENT.—There is established in the 
Department of the Interior an Office of Natural Resources 
Revenue (referred to in this section as the ‘‘Office’’) to 
be headed by a Director of Natural Resources Revenue 
(referred to in this section as the ‘‘Director’’). 
(b) APPOINTMENT AND COMPENSATION.— 
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(1) IN GENERAL.—The Director shall be ap-
pointed by the Secretary of the Interior. 
(2) COMPENSATION.—The Director shall be 
compensated at the rate provided for Level V of the 
Executive Schedule under section 5316 of title 5, 
United States Code. 
(c) DUTIES.— 
(1) IN GENERAL.—The Secretary of the Inte-
rior shall carry out, through the Office, all functions, 
powers, and duties vested in the Secretary and relat-
ing to the administration of offshore royalty and rev-
enue management functions. 
(2) SPECIFIC
AUTHORITIES.—The Secretary 
shall carry out, through the Office, all functions, 
powers, and duties previously assigned to the Min-
erals Management Service (including the authority 
to develop, promulgate, and enforce regulations) re-
garding offshore royalty and revenue collection; roy-
alty and revenue distribution; auditing and compli-
ance; investigation and enforcement of royalty and 
revenue regulations; and asset management for on-
shore and offshore activities. 
(d) LIMITATION.—The Secretary shall not carry out 
through the Office any function, power, or duty that is— 
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(1) required by section 402 to be carried out 
through Bureau of Ocean Energy; or 
(2) required by section 403 to be carried out 
through the Ocean Energy Safety Service. 
SEC. 405. ETHICS AND DRUG TESTING. 
(a) CERTIFICATION.—The Secretary of the Interior 
shall certify annually that all Department of the Interior 
officers and employees having regular, direct contact with 
lessees, contractors, concessionaires, and other businesses 
interested before the Government as a function of their 
official duties, or conducting investigations, issuing per-
mits, or responsible for oversight of energy programs, are 
in full compliance with all Federal employee ethics laws 
and regulations under the Ethics in Government Act of 
1978 (5 U.S.C. App.) and part 2635 of title 5, Code of 
Federal Regulations, and all guidance issued under sub-
section (c). 
(b) DRUG TESTING.—The Secretary shall conduct a 
random drug testing program of all Department of the 
Interior personnel referred to in subsection (a). 
(c) GUIDANCE.—Not later than 90 days after the 
date of enactment of this Act, the Secretary shall issue 
supplementary ethics and drug testing guidance for the 
employees for which certification is required under sub-
section (a). The Secretary shall update the supplementary 
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ethics guidance not less than once every 3 years there-
after. 
SEC. 406. ABOLISHMENT OF MINERALS MANAGEMENT 
SERVICE. 
(a) ABOLISHMENT.—The Minerals Management 
Service is abolished. 
(b) COMPLETED ADMINISTRATIVE ACTIONS.— 
(1) IN
GENERAL.—Completed administrative 
actions of the Minerals Management Service shall 
not be affected by the enactment of this Act, but 
shall continue in effect according to their terms until 
amended, modified, superseded, terminated, set 
aside, or revoked in accordance with law by an offi-
cer of the United States or a court of competent ju-
risdiction, or by operation of law. 
(2) COMPLETED ADMINISTRATIVE ACTION DE-
FINED.—For purposes of paragraph (1), the term 
‘‘completed administrative action’’ includes orders, 
determinations, 
memoranda 
of 
understanding, 
memoranda of agreements, rules, regulations, per-
sonnel actions, permits, agreements, grants, con-
tracts, certificates, licenses, registrations, and privi-
leges. 
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(c) PENDING PROCEEDINGS.—Subject to the author-
ity of the Secretary of the Interior and the officers of the 
Department of the Interior under this Act— 
(1) pending proceedings in the Minerals Man-
agement Service, including notices of proposed rule-
making, and applications for licenses, permits, cer-
tificates, grants, and financial assistance, shall con-
tinue, notwithstanding the enactment of this Act or 
the vesting of functions of the Service in another 
agency, unless discontinued or modified under the 
same terms and conditions and to the same extent 
that such discontinuance or modification could have 
occurred if this Act had not been enacted; and 
(2) orders issued in such proceedings, and ap-
peals therefrom, and payments made pursuant to 
such orders, shall issue in the same manner and on 
the same terms as if this Act had not been enacted, 
and any such orders shall continue in effect until 
amended, modified, superseded, terminated, set 
aside, or revoked by an officer of the United States 
or a court of competent jurisdiction, or by operation 
of law. 
(d) PENDING CIVIL ACTIONS.—Subject to the au-
thority of the Secretary of the Interior or any officer of 
the Department of the Interior under this Act, pending 
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civil actions shall continue notwithstanding the enactment 
of this Act, and in such civil actions, proceedings shall be 
had, appeals taken, and judgments rendered and enforced 
in the same manner and with the same effect as if such 
enactment had not occurred. 
(e) REFERENCES.—References relating to the Min-
erals Management Service in statutes, Executive orders, 
rules, regulations, directives, or delegations of authority 
that precede the effective date of this Act are deemed to 
refer, as appropriate, to the Department, to its officers, 
employees, or agents, or to its corresponding organiza-
tional units or functions. Statutory reporting requirements 
that applied in relation to the Minerals Management Serv-
ice immediately before the effective date of this Act shall 
continue to apply. 
SEC. 407. CONFORMING AMENDMENTS TO EXECUTIVE 
SCHEDULE PAY RATES. 
(a) UNDER SECRETARY FOR ENERGY, LANDS, AND 
MINERALS.—Section 5314 of title 5, United States Code, 
is amended by inserting after the item relating to ‘‘Under 
Secretaries of the Treasury (3)’’ the following: 
‘‘Under Secretary for Energy, Lands, and Min-
erals, Department of the Interior.’’. 
(b) ASSISTANT SECRETARIES.—Section 5315 of title 
5, United States Code, is amended by striking ‘‘Assistant 
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Secretaries, Department of the Interior (6)’’ and inserting 
the following: 
‘‘Assistant Secretaries, Department of the Inte-
rior (7).’’. 
(c) DIRECTORS.—Section 5316 of title 5, United 
States Code, is amended by striking ‘‘Director, Bureau of 
Mines, Department of the Interior.’’ and inserting the fol-
lowing new items: 
‘‘Director, Bureau of Ocean Energy, Depart-
ment of the Interior. 
‘‘Director, Ocean Energy Safety Service, De-
partment of the Interior. 
‘‘Director, Office of Natural Resources Rev-
enue, Department of the Interior.’’. 
SEC. 408. OUTER CONTINENTAL SHELF ENERGY SAFETY 
ADVISORY BOARD. 
(a) ESTABLISHMENT.—The Secretary of the Interior 
shall establish, under the Federal Advisory Committee 
Act, an Outer Continental Shelf Energy Safety Advisory 
Board (referred to in this section as the ‘‘Board’’)— 
(1) to provide the Secretary and the Directors 
established by this Act with independent scientific 
and technical advice on safe, responsible, and timely 
mineral and renewable energy exploration, develop-
ment, and production activities; and 
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(2) to review operations of the National Off-
shore Energy Health and Safety Academy estab-
lished under section 403(d), including submitting to 
the Secretary recommendations of curriculum to en-
sure training scientific and technical advancements. 
(b) MEMBERSHIP.— 
(1) SIZE.—The Board shall consist of not more 
than 11 members, who— 
(A) shall be appointed by the Secretary 
based on their expertise in oil and gas drilling, 
well design, operations, well containment and 
oil spill response; and 
(B) must have significant scientific, engi-
neering, management, and other credentials and 
a history of working in the field related to safe 
energy exploration, development, and produc-
tion activities. 
(2) CONSULTATION
AND
NOMINATIONS.—The 
Secretary shall consult with the National Academy 
of Sciences and the National Academy of Engineer-
ing to identify potential candidates for the Board 
and shall take nominations from the public. 
(3) TERM.—The Secretary shall appoint Board 
members to staggered terms of not more than 4 
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years, and shall not appoint a member for more 
than 2 consecutive terms. 
(4) BALANCE.—In appointing members to the 
Board, the Secretary shall ensure a balanced rep-
resentation of industry and research interests. 
(c) CHAIR.—The Secretary shall appoint the Chair 
for the Board from among its members. 
(d) MEETINGS.—The Board shall meet not less than 
3 times per year and shall host, at least once per year, 
a public forum to review and assess the overall energy 
safety performance of Outer Continental Shelf mineral 
and renewable energy resource activities. 
(e) OFFSHORE DRILLING SAFETY ASSESSMENTS 
AND RECOMMENDATIONS.—As part of its duties under 
this section, the Board shall, by not later than 180 days 
after the date of enactment of this section and every 5 
years thereafter, submit to the Secretary a report that— 
(1) assesses offshore oil and gas well control 
technologies, practices, voluntary standards, and 
regulations in the United States and elsewhere; and 
(2) as appropriate, recommends modifications 
to the regulations issued under this Act to ensure 
adequate protection of safety and the environment, 
including recommendations on how to reduce regula-
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tions and administrative actions that are duplicative 
or unnecessary. 
(f) REPORTS.—Reports of the Board shall be sub-
mitted by the Board to the Committee on Natural Re-
sources of the House or Representatives and the Com-
mittee on Energy and Natural Resources of the Senate 
and made available to the public in electronically acces-
sible form. 
(g) TRAVEL EXPENSES.—Members of the Board, 
other than full-time employees of the Federal Government, 
while attending meeting of the Board or while otherwise 
serving at the request of the Secretary or the Director 
while serving away from their homes or regular places of 
business, may be allowed travel expenses, including per 
diem in lieu of subsistence, as authorized by section 5703 
of title 5, United States Code, for individuals in the Gov-
ernment serving without pay. 
SEC. 409. OUTER CONTINENTAL SHELF INSPECTION FEES. 
Section 22 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1348) is amended by adding at the end of the 
section the following: 
‘‘(g) INSPECTION FEES.— 
‘‘(1) ESTABLISHMENT.—The Secretary of the 
Interior shall collect from the operators of facilities 
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subject to inspection under subsection (c) non-re-
fundable fees for such inspections— 
‘‘(A) at an aggregate level equal to the 
amount necessary to offset the annual expenses 
of inspections of outer Continental Shelf facili-
ties (including mobile offshore drilling units) by 
the Department of the Interior; and 
‘‘(B) using a schedule that reflects the dif-
ferences in complexity among the classes of fa-
cilities to be inspected. 
‘‘(2) OCEAN ENERGY SAFETY FUND.—There is 
established in the Treasury a fund, to be known as 
the ‘Ocean Energy Enforcement Fund’ (referred to 
in this subsection as the ‘Fund’), into which shall be 
deposited all amounts collected as fees under para-
graph (1) and which shall be available as provided 
under paragraph (3). 
‘‘(3) AVAILABILITY OF FEES.— 
‘‘(A) IN GENERAL.—Notwithstanding sec-
tion 3302 of title 31, United States Code, all 
amounts deposited in the Fund— 
‘‘(i) shall be credited as offsetting col-
lections; 
‘‘(ii) shall be available for expenditure 
for purposes of carrying out inspections of 
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outer Continental Shelf facilities (including 
mobile offshore drilling units) and the ad-
ministration of the inspection program 
under this section; 
‘‘(iii) shall be available only to the ex-
tent provided for in advance in an appro-
priations Act; and 
‘‘(iv) shall remain available until ex-
pended. 
‘‘(B) USE FOR FIELD OFFICES.—Not less 
than 75 percent of amounts in the Fund may 
be appropriated for use only for the respective 
Department of the Interior field offices where 
the amounts were originally assessed as fees. 
‘‘(4) INITIAL FEES.—Fees shall be established 
under this subsection for the fiscal year in which 
this subsection takes effect and the subsequent 10 
years, and shall not be raised without advise and 
consent of the Congress, except as determined by the 
Secretary to be appropriate as an adjustment equal 
to the percentage by which the Consumer Price 
Index for the month of June of the calendar year 
preceding the adjustment exceeds the Consumer 
Price Index for the month of June of the calendar 
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year in which the claim was determined or last ad-
justed. 
‘‘(5) ANNUAL FEES.—Annual fees shall be col-
lected under this subsection for facilities that are 
above the waterline, excluding drilling rigs, and are 
in place at the start of the fiscal year. Fees for each 
fiscal year in the period of fiscal years 2013 through 
2022 shall be— 
‘‘(A) $10,500 for facilities with no wells, 
but with processing equipment or gathering 
lines; 
‘‘(B) $17,000 for facilities with 1 to 10 
wells, with any combination of active or inactive 
wells; and 
‘‘(C) $31,500 for facilities with more than 
10 wells, with any combination of active or in-
active wells. 
‘‘(6) FEES FOR DRILLING RIGS.—Fees for drill-
ing rigs shall be assessed under this subsection for 
all inspections completed in fiscal years 2013 
through 2022. Fees for fiscal year 2013 shall be: 
‘‘(A) $30,500 per inspection for rigs oper-
ating in water depths of 1,000 feet or more; 
and 
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‘‘(B) $16,700 per inspection for rigs oper-
ating in water depths of less than 1,000 feet. 
‘‘(7) BILLING.—The Secretary shall bill des-
ignated operators under paragraph (5) within 60 
days after the date of the inspection, with payment 
required within 30 days of billing. The Secretary 
shall bill designated operators under paragraph (6) 
within 30 days of the end of the month in which the 
inspection occurred, with payment required within 
30 days after billing. 
‘‘(8) SUNSET.—No fee may be collected under 
this subsection for any fiscal year after fiscal year 
2022. 
‘‘(9) ANNUAL REPORTS.— 
‘‘(A) IN
GENERAL.—Not later than 60 
days after the end of each fiscal year beginning 
with fiscal year 2013, the Secretary shall sub-
mit to the Committee on Energy and Natural 
Resources of the Senate and the Committee on 
Natural Resources of the House of Representa-
tives a report on the operation of the Fund dur-
ing the fiscal year. 
‘‘(B) CONTENTS.—Each report shall in-
clude, for the fiscal year covered by the report, 
the following: 
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‘‘(i) A statement of the amounts de-
posited into the Fund. 
‘‘(ii) A description of the expenditures 
made from the Fund for the fiscal year, in-
cluding the purpose of the expenditures 
and the additional hiring of personnel. 
‘‘(iii) A statement of the balance re-
maining in the Fund at the end of the fis-
cal year. 
‘‘(iv) An accounting of pace of permit 
approvals. 
‘‘(v) If fee increases are proposed 
after the initial 10-year period referred to 
in paragraph (5), a proper accounting of 
the potential adverse economic impacts 
such fee increases will have on offshore 
economic activity and overall production, 
conducted by the Secretary. 
‘‘(vi) Recommendations to increase 
the efficacy and efficiency of offshore in-
spections. 
‘‘(vii) Any corrective actions levied 
upon offshore inspectors as a result of any 
form of misconduct.’’. 
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TITLE V—UNITED STATES 
TERRITORIES 
SEC. 501. APPLICATION OF OUTER CONTINENTAL SHELF 
LANDS ACT WITH RESPECT TO TERRITORIES 
OF THE UNITED STATES. 
Section 2 of the Outer Continental Shelf Lands Act 
(43 U.S.C. 1331) is amended— 
(1) in paragraph (a), by inserting after ‘‘con-
trol’’ the following: ‘‘or lying within the United 
States exclusive economic zone and the Continental 
Shelf adjacent to any territory of the United 
States’’; 
(2) in paragraph (p), by striking ‘‘and’’ after 
the semicolon at the end; 
(3) in paragraph (q), by striking the period at 
the end and inserting ‘‘; and’’; and 
(4) by adding at the end the following: 
‘‘(r) The term ‘State’ includes each territory of the 
United States.’’. 
Æ 
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