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SEC. 1425. BANKRUPTCY JUDGESHIPS.
(a) SHORT TITLE.—This section may be cited as the
‘‘Bankruptcy Judgeship Act of 2000’’.
(b) TEMPORARY JUDGESHIPS.—
(1) APPOINTMENTS.—The following judgeship
positions shall be filled in the manner prescribed in
section 152(a)(1) of title 28, United States Code, for
the appointment of bankruptcy judges provided for in
section 152(a)(2) of such title:
(A) One additional bankruptcy judgeship
for the eastern district of California.
(B) Four additional bankruptcy judgeships
for the central district of California.
(C) One additional bankruptcy judgeship
for the southern district of Florida.
(D) Two additional bankruptcy judgeships
for the district of Maryland.
(E) One additional bankruptcy judgeship
for the eastern district of Michigan.
(F) One additional bankruptcy judgeship
for the southern district of Mississippi.
(G) One additional bankruptcy judgeship
for the district of New Jersey.
(H) One additional bankruptcy judgeship
for the eastern district of New York.
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(I) One additional bankruptcy judgeship for
the northern district of New York.
(J) One additional bankruptcy judgeship
for the southern district of New York.
(K) One additional bankruptcy judgeship
for the eastern district of Pennsylvania.
(L) One additional bankruptcy judgeship
for the middle district of Pennsylvania.
(M) One additional bankruptcy judgeship
for the western district of Tennessee.
(N) One additional bankruptcy judgeship
for the eastern district of Virginia.
(2) VACANCIES.—The first vacancy occurring in
the office of a bankruptcy judge in each of the judicial
districts set forth in paragraph (1) that—
(A) results from the death, retirement, res-
ignation, or removal of a bankruptcy judge; and
(B) occurs 5 years or more after the ap-
pointment date of a bankruptcy judge appointed
under paragraph (1);
shall not be filled.
(c) EXTENSIONS.—
(1) IN
GENERAL.—The temporary bankruptcy
judgeship positions authorized for the northern dis-
trict of Alabama, the district of Delaware, the district
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of Puerto Rico, the district of South Carolina, and the
eastern district of Tennessee under section 3(a) (1),
(3), (7), (8), and (9) of the Bankruptcy Judgeship Act
of 1992 (28 U.S.C. 152 note) are extended until the
first vacancy occurring in the office of a bankruptcy
judge in the applicable district resulting from the
death, retirement, resignation, or removal of a bank-
ruptcy judge and occurring—
(A) 8 years or more after November 8, 1993,
with respect to the northern district of Alabama;
(B) 10 years or more after October 28,
1993, with respect to the district of Delaware;
(C) 8 years or more after August 29, 1994,
with respect to the district of Puerto Rico;
(D) 8 years or more after June 27, 1994,
with respect to the district of South Carolina;
and
(E) 8 years or more after November 23,
1993, with respect to the eastern district of Ten-
nessee.
(2) APPLICABILITY OF OTHER PROVISIONS.—All
other provisions of section 3 of the Bankruptcy Judge-
ship Act of 1992 remain applicable to such temporary
judgeship positions.
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(d) TECHNICAL AMENDMENT.—The first sentence of
section 152(a)(1) of title 28, United States Code, is amend-
ed to read as follows: ‘‘Each bankruptcy judge to be ap-
pointed for a judicial district as provided in paragraph (2)
shall be appointed by the United States court of appeals
for the circuit in which such district is located.’’.
SEC. 1426. FAMILY FISHERMEN.
(a) DEFINITIONS.—Section 101 of title 11, United
States Code, is amended—
(1) by inserting after paragraph (7) the fol-
lowing:
‘‘(7A) ‘commercial fishing operation’ includes—
‘‘(A) the catching or harvesting of fish,
shrimp, lobsters, urchins, seaweed, shellfish, or
other aquatic species or products;
‘‘(B) for purposes of section 109 and chap-
ter 12, aquaculture activities consisting of rais-
ing for market any species or product described
in subparagraph (A); and
‘‘(C) the transporting by vessel of a pas-
senger for hire (as defined in section 2101 of title
46) who is engaged in recreational fishing;
‘‘(7B) ‘commercial fishing vessel’ means a vessel
used by a fisherman to carry out a commercial fish-
ing operation;’’;
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(2) by inserting after paragraph (19) the fol-
lowing:
‘‘(19A) ‘family fisherman’ means—
‘‘(A) an individual or individual and
spouse engaged in a commercial fishing oper-
ation (including aquaculture for purposes of
chapter 12)—
‘‘(i) whose aggregate debts do not ex-
ceed $1,500,000 and not less than 80 per-
cent of whose aggregate noncontingent, liq-
uidated debts (excluding a debt for the prin-
cipal residence of such individual or such
individual and spouse, unless such debt
arises out of a commercial fishing oper-
ation), on the date the case is filed, arise
out of a commercial fishing operation
owned or operated by such individual or
such individual and spouse; and
‘‘(ii) who receive from such commercial
fishing operation more than 50 percent of
such individual’s or such individual’s and
spouse’s gross income for the taxable year
preceding the taxable year in which the case
concerning such individual or such indi-
vidual and spouse was filed; or
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‘‘(B) a corporation or partnership—
‘‘(i) in which more than 50 percent of
the outstanding stock or equity is held by—
‘‘(I) 1 family that conducts the
commercial fishing operation; or
‘‘(II) 1 family and the relatives of
the members of such family, and such
family or such relatives conduct the
commercial fishing operation; and
‘‘(ii)(I) more than 80 percent of the
value of its assets consists of assets related
to the commercial fishing operation;
‘‘(II) its aggregate debts do not exceed
$1,500,000 and not less than 80 percent of
its 
aggregate 
noncontingent, 
liquidated
debts (excluding a debt for 1 dwelling which
is owned by such corporation or partner-
ship and which a shareholder or partner
maintains as a principal residence, unless
such debt arises out of a commercial fishing
operation), on the date the case is filed,
arise out of a commercial fishing operation
owned or operated by such corporation or
such partnership; and
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‘‘(III) if such corporation issues stock,
such stock is not publicly traded;’’; and
(3) by inserting after paragraph (19A) the fol-
lowing:
‘‘(19B) ‘family fisherman with regular annual
income’ means a family fisherman whose annual in-
come is sufficiently stable and regular to enable such
family fisherman to make payments under a plan
under chapter 12 of this title;’’.
(b) WHO MAY BE A DEBTOR.—Section 109(f) of title
11, United States Code, is amended by inserting ‘‘or family
fisherman’’ after ‘‘family farmer’’.
(c) CHAPTER 12.—Chapter 12 of title 11, United
States Code, is amended—
(1) in the chapter heading, by inserting ‘‘OR
FISHERMAN’’ after ‘‘FAMILY FARMER’’;
(2) in section 1201, by adding at the end the fol-
lowing:
‘‘(e)(1) Notwithstanding any other provision of law,
for purposes of this subsection, a guarantor of a claim of
a creditor under this section shall be treated in the same
manner as a creditor with respect to the operation of a stay
under this section.
‘‘(2) For purposes of a claim that arises from the own-
ership or operation of a commercial fishing operation, a
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co-maker of a loan made by a creditor under this section
shall be treated in the same manner as a creditor with re-
spect to the operation of a stay under this section.’’;
(3) in section 1203, by inserting ‘‘or commercial
fishing operation’’ after ‘‘farm’’;
(4) in section 1206, by striking ‘‘if the property
is farmland or farm equipment’’ and inserting ‘‘if the
property is farmland, farm equipment, or property of
a commercial fishing operation (including a commer-
cial fishing vessel)’’; and
(5) by adding at the end the following:
‘‘§ 1232. Additional provisions relating to family fish-
ermen
‘‘(a)(1) Notwithstanding any other provision of law,
except as provided in subsection (c), with respect to any
commercial fishing vessel of a family fisherman, the debts
of that family fisherman shall be treated in the manner pre-
scribed in paragraph (2).
‘‘(2)(A) For purposes of this chapter, a claim for a
lien described in subsection (b) for a commercial fishing ves-
sel of a family fisherman that could, but for this subsection,
be subject to a lien under otherwise applicable maritime
law, shall be treated as an unsecured claim.
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‘‘(B) Subparagraph (A) applies to a claim for a lien
resulting from a debt of a family fisherman incurred on
or after the date of enactment of this chapter.
‘‘(b) A lien described in this subsection is—
‘‘(1) a maritime lien under subchapter III of
chapter 313 of title 46 without regard to whether that
lien is recorded under section 31343 of title 46; or
‘‘(2) a lien under applicable State law (or the
law of a political subdivision thereof).
‘‘(c) Subsection (a) shall not apply to—
‘‘(1) a claim made by a member of a crew or a
seaman including a claim made for—
‘‘(A) wages, maintenance, or cure; or
‘‘(B) personal injury; or
‘‘(2) a preferred ship mortgage that has been per-
fected under subchapter II of chapter 313 of title 46.
‘‘(d) For purposes of this chapter, a mortgage described
in subsection (c)(2) shall be treated as a secured claim.’’.
(d) CLERICAL AMENDMENTS.—
(1) TABLE OF CHAPTERS.—In the table of chap-
ters for title 11, United States Code, the item relating
to chapter 12, is amended to read as follows:
‘‘12. Adjustments of Debts of a Family Farmer or Family
Fisherman with Regular Annual Income ...... 1201’’.
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(2) TABLE OF SECTIONS.—The table of sections
for chapter 12 of title 11, United States Code, is
amended by adding at the end the following new item:
‘‘1232. Additional provisions relating to family fishermen.’’.
(e) MAGNUSON-STEVENS FISHERY CONSERVATION AND
MANAGEMENT ACT.—Nothing in this title is intended to
change, affect, or amend the Magnuson-Stevens Fishery
Conservation and Management Act (16 U.S.C. 1801 et seq.).
SEC. 1427. COMPENSATING TRUSTEES.
Title 11, United States Code, is amended—
(1) in section 104(b)(1) in the matter preceding
subparagraph (A) by—
(A) striking ‘‘and 523(a)(2)(C)’’; and
(B) 
inserting 
‘‘523(a)(2)(C), 
and
1326(b)(3)’’ before ‘‘immediately’’;
(2) in section 326, by inserting at the end the
following:
‘‘(e) Notwithstanding any other provision of this sec-
tion, if a trustee in a chapter 7 case commences a motion
to dismiss or convert under section 707(b) and such motion
is granted, the court shall allow reasonable compensation
under section 330(a) of this title for the services and ex-
penses of the trustee and the trustee’s counsel in preparing
and presenting such motion and any related appeals.’’; and
(3) in section 1326(b)—
(A) in paragraph (1), by striking ‘‘and’’;
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(B) in paragraph (2), by striking the period
at the end and inserting ‘‘; and’’; and
(C) by adding at the end the following:
‘‘(3) if a chapter 7 trustee has been allowed com-
pensation under section 326(e) in a case converted to
this chapter or in a case dismissed under section
707(b) in which the debtor in this case was a
debtor—
‘‘(A) the amount of such unpaid compensa-
tion which shall be paid monthly by prorating
such amount over the remaining duration of the
plan, but a monthly payment shall not exceed
the greater of—
‘‘(i) $25; or
‘‘(ii) the amount payable to unsecured
nonpriority creditors as provided by the
plan multiplied by 5 percent, and the result
divided by the number of months in the
plan; and
‘‘(B) notwithstanding any other provision
of this title—
‘‘(i) such compensation is payable and
may be collected by the trustee under this
paragraph even if such amount has been
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discharged in a prior proceeding under this
title; and
‘‘(ii) such compensation is payable in
a case under this chapter only to the extent
permitted by this paragraph.’’.
SEC. 1428. AMENDMENT TO SECTION 362 OF TITLE 11,
UNITED STATES CODE.
Section 362(b)(18) of title 11, United States Code, is
amended to read as follows:
‘‘(18) under subsection (a) of the creation or per-
fection of a statutory lien for an ad valorem property
tax, or a special tax or special assessment on real
property whether or not ad valorem, imposed by a
governmental unit, if such tax or assessment comes
due after the filing of the petition.’’.
SEC. 1429. PROVISION OF ELECTRONIC FTC PAMPHLET
WITH ELECTRONIC CREDIT CARD APPLICA-
TIONS AND SOLICITATIONS.
Section 127(c) of the Truth in Lending Act (15 U.S.C.
1637(c)) is amended—
(1) by redesignating paragraph (5) as para-
graph (6); and
(2) by inserting after paragraph (4) the fol-
lowing:
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‘‘(5) INCLUSION OF FEDERAL TRADE COMMISSION
PAMPHLET.—
‘‘(A) IN
GENERAL.—Any application to
open a credit card account for any person under
an open end consumer credit plan, or a solicita-
tion or an advertisement to open such an ac-
count without requiring an application, that is
electronically transmitted to or accessed by a
consumer shall be accompanied by an electronic
version (or an electronic link thereto) of the
pamphlet published by the Federal Trade Com-
mission relating to choosing and using credit
cards.
‘‘(B) COSTS.—The card issuer with respect
to an account described in subparagraph (A)
shall be responsible for all costs associated with
compliance with that subparagraph.’’.
SEC. 1430. NO BANKRUPTCY FOR INSOLVENT POLITICAL
COMMITTEES.
Section 105 of title 11, United States Code, is amended
by inserting at the end the following:
‘‘(e) A political committee subject to the jurisdiction
of the Federal Election Commission under Federal election
laws may not file for bankruptcy under this title.’’.
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SEC. 1431. FEDERAL ELECTION LAW FINES AND PENALTIES
AS NONDISCHARGEABLE DEBT.
Section 523(a) of title 11, United States Code, is
amended by inserting after paragraph (14A) the following:
‘‘(14B) fines or penalties imposed under Federal
election law;’’.
SEC. 1432. PROHIBITION ON CERTAIN RETROACTIVE FI-
NANCE CHARGES.
Section 127 of the Truth in Lending Act (15 U.S.C.
1637) is amended by adding at the end the following:
‘‘(h) 
PROHIBITION
ON
RETROACTIVE
FINANCE
CHARGES.—
‘‘(1) IN GENERAL.—In the case of any credit
card account under an open end credit plan, if the
creditor provides a grace period applicable to any
new extension of credit under the account, no finance
charge may be imposed subsequent to the grace period
with regard to any amount that was paid on or be-
fore the end of that grace period.
‘‘(2) DEFINITION.—For purposes of this sub-
section, the term ‘grace period’ means a period during
which the extension of credit may be repaid, in whole
or in part, without incurring a finance charge for the
extension of credit.’’.
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SEC. 1433. SENSE OF SENATE CONCERNING CREDIT WOR-
THINESS.
The Board of Governors of the Federal Reserve System
shall report to the Senate Committee on Banking, Housing,
and Urban Affairs and the House of Representatives Com-
mittee on Banking and Financial Services within 6 months
of enactment of this Act as to whether and how the location
of the residence of an applicant for a credit card is consid-
ered by financial institutions in deciding whether an appli-
cant should be granted such credit card.
SEC. 1434. JUDICIAL EDUCATION.
The Director of the Administrative Office of the United
States Courts, in consultation with the Director of the Exec-
utive Office for United States Trustees, shall develop mate-
rials and conduct such training as may be useful to courts
in implementing this Act, including the requirements relat-
ing to the 707(b) means test and reaffirmations.
SEC. 1435. UNITED STATES TRUSTEE PROGRAM FILING FEE
INCREASE.
(a) RIGHTS AND POWERS OF THE TRUSTEE.—Section
546(c) of title 11, United States Code, is amended to read
as follows:
‘‘(c)(1) Except as provided in subsection (d) of
this section, and except as provided in subsection (c)
of section 507, the rights and powers of the trustee
under sections 544(a), 545, 547, and 549 are subject
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to the right of a seller of goods that has sold goods to
the debtor, in the ordinary course of the business of
the seller, to reclaim such goods if the debtor has re-
ceived such goods within 45 days prior to the com-
mencement of a case under this title, but such seller
may not reclaim any such goods unless the seller de-
mands in writing the reclamation of such goods—
‘‘(A) before 45 days after the date of receipt
of such goods by the debtor; or
‘‘(B) if such 45-day period expires after the
commencement of the case, before 20 days after
the date of commencement of the case.
‘‘(2) Notwithstanding the failure of the seller to
provide notice in a manner consistent with this sub-
section, the seller shall be entitled to assert the rights
established in section 503(b)(7) of this title.’’.
(b) ADMINISTRATIVE EXPENSES.—Section 503(b) of
title 11, United States Code, 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 invoice price of any goods received by
the debtor within 20 days of the date of filing of a
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case under this title where the goods have been sold
to the debtor in the ordinary course of such seller’s
business.’’.
SEC. 1436. PROVIDING REQUESTED TAX DOCUMENTS TO
THE COURT.
In the case of an individual under chapter 7, the court
shall not grant a discharge unless requested tax documents
have been provided to the court. In the case of an individual
under chapter 11 or 13, the court shall not confirm a plan
of reorganization unless requested tax documents have been
filed with the court.
SEC. 1437. DEFINITION OF FAMILY FARMER.
Section 101(18) of title 11, United States Code, is
amended—
(1) in subparagraph (A) by—
(A) striking ‘‘$1,500,000’’ and inserting
‘‘$3,000,000’’; and
(B) striking ‘‘80’’ and inserting ‘‘50’’; and
(2) 
in 
subparagraph 
(B)(ii) 
by 
striking
‘‘$1,500,000’’ and inserting ‘‘$3,000,000’’.
SEC. 1438. ENCOURAGING CREDITWORTHINESS.
(a) SENSE OF THE CONGRESS.—It is the sense of the
Congress that—
(1) certain lenders may sometimes offer credit to
consumers indiscriminately, without taking steps to
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ensure that consumers are capable of repaying the re-
sulting debt, and in a manner which may encourage
certain consumers to accumulate additional debt; and
(2) resulting consumer debt may increasingly be
a major contributing factor to consumer insolvency.
(b) STUDY REQUIRED.—The Board of Governors of the
Federal Reserve System (hereafter in this section referred
to as the ‘‘Board’’) shall conduct a study of—
(1) consumer credit industry practices of solic-
iting and extending credit—
(A) indiscriminately;
(B) without taking steps to ensure that con-
sumers are capable of repaying the resulting
debt; and
(C) in a manner that encourages consumers
to accumulate additional debt; and
(2) the effects of such practices on consumer debt
and insolvency.
(c) REPORT AND REGULATIONS.—Not later than 12
months after the date of enactment of this Act, the Board—
(1) shall make public a report on its findings
with respect to the indiscriminate solicitation and ex-
tension of credit by the credit industry;
(2) may issue regulations that would require ad-
ditional disclosures to consumers; and
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(3) may take any other actions, consistent with
its existing statutory authority, that the Board finds
necessary to ensure responsible industrywide practices
and to prevent resulting consumer debt and insol-
vency.
SEC. 1439. PROPERTY NO LONGER SUBJECT TO REDEMP-
TION.
Section 541(b) of title 11 of the United States Code
is amended by adding at the end the following:
‘‘(6) any interest of the debtor in property where
the debtor pledged or sold tangible personal property
(other than securities or written or printed evidences
of indebtedness or title) as collateral for a loan or ad-
vance of money, where—
‘‘(A) the tangible personal property is in the
possession of the pledgee or transferee;
‘‘(B) the debtor has no obligation to repay
the money, redeem the collateral, or buy back the
property at a stipulated price; and
‘‘(C) neither the debtor nor the trustee have
exercised any right to redeem provided under the
contract or State law, in a timely manner as
provided under State law and section 108(b) of
this title.’’.
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SEC. 1440. AVAILABILITY OF TOLL-FREE ACCESS TO INFOR-
MATION.
Section 127(b)(11) of the Truth in Lending Act (15
U.S.C. 1637(b)), as added by this Act, is amended by add-
ing at the end the following:
‘‘(K) A creditor that maintains a toll-free tele-
phone number for the purpose of providing customers
with the actual number of months that it will take to
repay an outstanding balance shall include the fol-
lowing statement on each billing statement: ‘Making
only the minimum payment will increase the interest
you pay and the time it takes to repay your balance.
For more information, call this toll-free number:
llll.’. ’’.
TITLE XV—GENERAL EFFECTIVE
DATE; 
APPLICATION 
OF
AMENDMENTS
SEC. 1501. EFFECTIVE DATE; APPLICATION OF AMEND-
MENTS.
(a) EFFECTIVE DATE.—Except as provided otherwise
in this Act, this Act and the amendments made by this Act
shall take effect 180 days after the date of enactment of this
Act.
(b) APPLICATION OF AMENDMENTS.—The amendments
made by this Act shall not apply with respect to cases com-
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group or index of securities, certificates
of deposit, or mortgage loans or inter-
ests therein (including any interest
therein or based on the value thereof)
or any option on any of the foregoing,
including any option to purchase or
sell any such security, certificate of de-
posit, loan, interest, group or index, or
option;
‘‘(II) does not include any pur-
chase, sale, or repurchase obligation
under a participation in a commercial
mortgage loan unless the Corporation
determines by regulation, resolution, or
order to include any such agreement
within the meaning of such term;
‘‘(III) means any option entered
into on a national securities exchange
relating to foreign currencies;
‘‘(IV) means the guarantee by or
to any securities clearing agency of
any settlement of cash, securities, cer-
tificates of deposit, mortgage loans or
interests therein, group or index of se-
curities, certificates of deposit, or mort-
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gage loans or interests therein (includ-
ing any interest therein or based on
the value thereof) or option on any of
the foregoing, including any option to
purchase or sell any such security, cer-
tificate of deposit, loan, interest, group
or index or option;
‘‘(V) means any margin loan;
‘‘(VI) means any other agreement
or transaction that is similar to any
agreement or transaction referred to in
this clause (other than subclause (II));
‘‘(VII) means any combination of
the agreements or transactions referred
to in this clause (other than subclause
(II));
‘‘(VIII) means any option to enter
into any agreement or transaction re-
ferred to in this clause (other than sub-
clause (II));
‘‘(IX) means a master agreement
that provides for an agreement or
transaction referred to in subclause (I),
(III), (IV), (V), (VI), (VII), or (VIII),
together with all supplements to any
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such master agreement, without regard
to whether the master agreement pro-
vides for an agreement or transaction
that is not a securities contract under
this clause, except that the master
agreement shall be considered to be a
securities contract under this clause
only with respect to each agreement or
transaction under the master agree-
ment that is referred to in subclause
(I), (III), (IV), (V), (VI), (VII), or
(VIII); and
‘‘(X) means any security agree-
ment or arrangement or other credit
enhancement related to any agreement
or transaction referred to in this clause
(other than subclause (II)).’’.
(c) DEFINITION OF COMMODITY CONTRACT.—Section
11(e)(8)(D)(iii) of the Federal Deposit Insurance Act (12
U.S.C. 1821(e)(8)(D)(iii)) is amended to read as follows:
‘‘(iii) 
COMMODITY
CONTRACT.—The
term ‘commodity contract’ means—
‘‘(I) with respect to a futures com-
mission merchant, a contract for the
purchase or sale of a commodity for fu-
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ture delivery on, or subject to the rules
of, a contract market or board of trade;
‘‘(II) with respect to a foreign fu-
tures commission merchant, a foreign
future;
‘‘(III) with respect to a leverage
transaction merchant, a leverage trans-
action;
‘‘(IV) with respect to a clearing
organization, a contract for the pur-
chase or sale of a commodity for future
delivery on, or subject to the rules of,
a contract market or board of trade
that is cleared by such clearing organi-
zation, or commodity option traded on,
or subject to the rules of, a contract
market or board of trade that is
cleared by such clearing organization;
‘‘(V) with respect to a commodity
options dealer, a commodity option;
‘‘(VI) any other agreement or
transaction that is similar to any
agreement or transaction referred to in
this clause;
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‘‘(VII) any combination of the
agreements or transactions referred to
in this clause;
‘‘(VIII) any option to enter into
any agreement or transaction referred
to in this clause;
‘‘(IX) a master agreement that
provides for an agreement or trans-
action referred to in subclause (I), (II),
(III), (IV), (V), (VI), (VII), or (VIII),
together with all supplements to any
such master agreement, without regard
to whether the master agreement pro-
vides for an agreement or transaction
that is not a commodity contract
under this clause, except that the mas-
ter agreement shall be considered to be
a commodity contract under this clause
only with respect to each agreement or
transaction under the master agree-
ment that is referred to in subclause
(I), (II), (III), (IV), (V), (VI), (VII), or
(VIII); or
‘‘(X) a security agreement or ar-
rangement or other credit enhancement
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related to any agreement or trans-
action referred to in this clause.’’.
(d) DEFINITION
OF FORWARD CONTRACT.—Section
11(e)(8)(D)(iv) of the Federal Deposit Insurance Act (12
U.S.C. 1821(e)(8)(D)(iv)) is amended to read as follows:
‘‘(iv) FORWARD CONTRACT.—The term
‘forward contract’ means—
‘‘(I) a contract (other than a com-
modity contract) for the purchase, sale,
or transfer of a commodity or any
similar good, article, service, right, or
interest which is presently or in the fu-
ture becomes the subject of dealing in
the forward contract trade, or product
or byproduct thereof, with a maturity
date that is more than 2 days after the
date on which the contract is entered
into, including a repurchase agree-
ment, reverse repurchase agreement,
consignment, lease, swap, hedge trans-
action, deposit, loan, option, allocated
transaction, unallocated transaction,
or any other similar agreement;
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‘‘(II) any combination of agree-
ments or transactions referred to in
subclauses (I) and (III);
‘‘(III) any option to enter into
any agreement or transaction referred
to in subclause (I) or (II);
‘‘(IV) a master agreement that
provides for an agreement or trans-
action referred to in subclauses (I),
(II), or (III), together with all supple-
ments to any such master agreement,
without regard to whether the master
agreement provides for an agreement
or transaction that is not a forward
contract under this clause, except that
the master agreement shall be consid-
ered to be a forward contract under
this clause only with respect to each
agreement or transaction under the
master agreement that is referred to in
subclause (I), (II), or (III); or
‘‘(V) a security agreement or ar-
rangement or other credit enhancement
related to any agreement or trans-
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action referred to in subclause (I), (II),
(III), or (IV).’’.
(e) DEFINITION OF REPURCHASE AGREEMENT AND
REVERSE
REPURCHASE
AGREEMENT.—Section
11(e)(8)(D)(v) of the Federal Deposit Insurance Act (12
U.S.C. 1821(e)(8)(D)(v)) is amended to read as follows:
‘‘(v) REPURCHASE
AGREEMENT; RE-
VERSE
REPURCHASE
AGREEMENT.—The
terms ‘repurchase agreement’ and ‘reverse
repurchase agreement’—
‘‘(I) mean an agreement, includ-
ing related terms, which provides for
the transfer of 1 or more certificates of
deposit, mortgage-related securities (as
such term is defined in the Securities
Exchange Act of 1934), mortgage loans,
interests in mortgage-related securities
or mortgage loans, eligible bankers’ ac-
ceptances, qualified foreign government
securities or securities that are direct
obligations of, or that are fully guaran-
teed by, the United States or any agen-
cy of the United States against the
transfer of funds by the transferee of
such certificates of deposit, eligible
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bankers’ acceptances, securities, loans,
or interests with a simultaneous agree-
ment by such transferee to transfer to
the transferor thereof certificates of de-
posit, eligible bankers’ acceptances, se-
curities, loans, or interests as described
in this subclause, at a date certain
that is not later than 1 year after the
date of such transfers or on demand,
against the transfer of funds, or any
other similar agreement;
‘‘(II) does not include any repur-
chase obligation under a participation
in a commercial mortgage loan unless
the Corporation determines by regula-
tion, resolution, or order to include
any such participation within the
meaning of such term;
‘‘(III) means any combination of
agreements or transactions referred to
in subclauses (I) and (IV);
‘‘(IV) means any option to enter
into any agreement or transaction re-
ferred to in subclause (I) or (III);
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‘‘(V) means a master agreement
that provides for an agreement or
transaction referred to in subclause (I),
(III), or (IV), together with all supple-
ments to any such master agreement,
without regard to whether the master
agreement provides for an agreement
or transaction that is not a repurchase
agreement under this clause, except
that the master agreement shall be con-
sidered to be a repurchase agreement
under this subclause only with respect
to each agreement or transaction under
the master agreement that is referred to
in subclause (I), (III), or (IV); and
‘‘(VI) means a security agreement
or arrangement or other credit en-
hancement related to any agreement or
transaction referred to in subclause (I),
(III), (IV), or (V).
For purposes of this clause, the term ‘quali-
fied foreign government security’ means a
security that is a direct obligation of, or
that is fully guaranteed by, the central gov-
ernment of a member of the Organization
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for Economic Cooperation and Development
(as determined by regulation or order
adopted by the appropriate Federal banking
authority).’’.
(f) DEFINITION OF SWAP AGREEMENT.—The Federal
Deposit Insurance Act (12 U.S.C. 1821(e)(8)(D)(vi)) is
amended to read as follows:
‘‘(vi) SWAP
AGREEMENT.—The term
‘swap agreement’—
‘‘(I) means any agreement, in-
cluding the terms and conditions in-
corporated by reference in any such
agreement, that is—
‘‘(aa) an interest rate swap,
option, future, or forward agree-
ment, including a rate floor, rate
cap, rate collar, cross-currency
rate swap, and basis swap;
‘‘(bb) a spot, same day-to-
morrow, tomorrow-next, forward,
or other foreign exchange or pre-
cious metals agreement;
‘‘(cc) a currency swap, op-
tion, future, or forward agree-
ment;
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‘‘(dd) an equity index or eq-
uity swap, option, future, or for-
ward agreement;
‘‘(ee) a debt index or debt
swap, option, future, or forward
agreement;
‘‘(ff) a credit spread or credit
swap, option, future, or forward
agreement; or
‘‘(gg) a commodity index or
commodity swap, option, future,
or forward agreement;
‘‘(II) means any agreement or
transaction that is similar to any
other agreement or transaction referred
to in this clause, that is presently, or
in the future becomes, regularly entered
into in the swap market (including
terms and conditions incorporated by
reference in such agreement), and that
is a forward, swap, future, or option
on 1 or more rates, currencies, com-
modities, equity securities or other eq-
uity instruments, debt securities or
other debt instruments, or economic in-
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dices or measures of economic risk or
value;
‘‘(III) means any combination of
agreements or transactions referred to
in this clause;
‘‘(IV) means any option to enter
into any agreement or transaction re-
ferred to in this clause;
‘‘(V) means a master agreement
that provides for an agreement or
transaction referred to in subclause (I),
(II), (III), or (IV), together with all
supplements to any such master agree-
ment, without regard to whether the
master agreement contains an agree-
ment or transaction that is not a swap
agreement under this clause, except
that the master agreement shall be con-
sidered to be a swap agreement under
this clause only with respect to each
agreement or transaction under the
master agreement that is referred to in
subclause (I), (II), (III), or (IV);
‘‘(VI) means any security agree-
ment or arrangement or other credit
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enhancement related to any agreements
or transactions referred to in subpara-
graph (I), (II), (III), or (IV); and
‘‘(VII) is applicable for purposes
of this Act only, and shall not be con-
strued or applied so as to challenge or
affect the characterization, definition,
or treatment of any swap agreement
under any other statute, regulation, or
rule, including the Securities Act of
1933, the Securities Exchange Act of
1934, the Public Utility Holding Com-
pany Act of 1935, the Trust Indenture
Act of 1939, the Investment Company
Act of 1940, the Investment Advisers
Act of 1940, the Securities Investor
Protection Act of 1970, the Commodity
Exchange Act, and the regulations pro-
mulgated by the Securities and Ex-
change Commission or the Commodity
Futures Trading Commission.’’.
(g) 
DEFINITION
OF
TRANSFER.—Section
11(e)(8)(D)(viii) of the Federal Deposit Insurance Act (12
U.S.C. 1821(e)(8)(D)(viii)) is amended to read as follows:
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‘‘(viii) TRANSFER.—The term ‘trans-
fer’ means every mode, direct or indirect,
absolute or conditional, voluntary or invol-
untary, of disposing of or parting with
property or with an interest in property,
including retention of title as a security in-
terest and foreclosure of the depository
institutions’s equity of redemption.’’.
(h) TREATMENT
OF
QUALIFIED
FINANCIAL
CON-
TRACTS.—Section 11(e)(8) of the Federal Deposit Insurance
Act (12 U.S.C. 1821(e)(8)) is amended—
(1) in subparagraph (A), by striking ‘‘paragraph
(10)’’ and inserting ‘‘paragraphs (9) and (10)’’;
(2) in subparagraph (A)(i), by striking ‘‘to cause
the termination or liquidation’’ and inserting ‘‘such
person has to cause the termination, liquidation, or
acceleration’’;
(3) by striking clause (ii) of subparagraph (A)
and inserting the following:
‘‘(ii) any right under any security
agreement or arrangement or other credit
enhancement related to 1 or more qualified
financial contracts described in clause (i);
or’’; and
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(4) by striking clause (ii) of subparagraph (E)
and inserting the following:
‘‘(ii) any right under any security
agreement or arrangement or other credit
enhancement related to 1 or more qualified
financial contracts described in clause (i);
or’’.
(i) 
AVOIDANCE
OF
TRANSFERS.—Section
11(e)(8)(C)(i) of the Federal Deposit Insurance Act (12
U.S.C. 1821(e)(8)(C)(i)) is amended by inserting ‘‘section
5242 of the Revised Statutes (12 U.S.C. 91), or any other
Federal or State law relating to the avoidance of pref-
erential or fraudulent transfers,’’ before ‘‘the Corporation’’.
SEC. 1603. AUTHORITY OF THE CORPORATION WITH RE-
SPECT TO FAILED AND FAILING INSTITU-
TIONS.
(a) IN GENERAL.—Section 11(e)(8) of the Federal De-
posit Insurance Act (12 U.S.C. 1821(e)(8)) is amended—
(1) in subparagraph (E), by striking ‘‘other than
paragraph (12) of this subsection, subsection (d)(9)’’
and inserting ‘‘other than subsections (d)(9) and
(e)(10)’’; and
(2) by adding at the end the following:
‘‘(F) CLARIFICATION.—No provision of law
shall be construed as limiting the right or power
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of the Corporation, or authorizing any court or
agency to limit or delay, in any manner, the
right or power of the Corporation to transfer any
qualified financial contract in accordance with
paragraphs (9) and (10) or to disaffirm or repu-
diate any such contract in accordance with sub-
section (e)(1).
‘‘(G) WALKAWAY
CLAUSES
NOT
EFFEC-
TIVE.—
‘‘(i) IN
GENERAL.—Notwithstanding
the provisions of subparagraphs (A) and
(E), and sections 403 and 404 of the Fed-
eral Deposit Insurance Corporation Im-
provement Act of 1991, no walkaway clause
shall be enforceable in a qualified financial
contract of an insured depository institu-
tion in default.
‘‘(ii) WALKAWAY CLAUSE DEFINED.—
For purposes of this subparagraph, the term
‘walkaway clause’ means a provision in a
qualified financial contract that, after cal-
culation of a value of a party’s position or
an amount due to or from 1 of the parties
in accordance with its terms upon termi-
nation, liquidation, or acceleration of the
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qualified financial contract, either does not
create a payment obligation of a party or
extinguishes a payment obligation of a
party in whole or in part solely because of
such party’s status as a nondefaulting
party.’’.
(b) TECHNICAL AND CONFORMING AMENDMENT.—Sec-
tion 11(e)(12)(A) of the Federal Deposit Insurance Act (12
U.S.C. 1821(e)(12)(A)) is amended by inserting ‘‘or the ex-
ercise of rights or powers by’’ after ‘‘the appointment of’’.
SEC. 1604. AMENDMENTS RELATING TO TRANSFERS OF
QUALIFIED FINANCIAL CONTRACTS.
(a) TRANSFERS OF QUALIFIED FINANCIAL CONTRACTS
TO FINANCIAL INSTITUTIONS.—Section 11(e)(9) of the Fed-
eral Deposit Insurance Act (12 U.S.C. 1821(e)(9)) is
amended to read as follows:
‘‘(9) TRANSFER OF QUALIFIED FINANCIAL CON-
TRACTS.—
‘‘(A) IN GENERAL.—In making any transfer
of assets or liabilities of a depository institution
in default which includes any qualified financial
contract, the conservator or receiver for such de-
pository institution shall either—
‘‘(i) transfer to 1 financial institution,
other than a financial institution for which
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a conservator, receiver, trustee in bank-
ruptcy, or other legal custodian has been
appointed or which is otherwise the subject
of a bankruptcy or insolvency proceeding—
‘‘(I) all qualified financial con-
tracts between any person or any affil-
iate of such person and the depository
institution in default;
‘‘(II) all claims of such person or
any affiliate of such person against
such depository institution under any
such contract (other than any claim
which, under the terms of any such
contract, is subordinated to the claims
of general unsecured creditors of such
institution);
‘‘(III) all claims of such deposi-
tory institution against such person or
any affiliate of such person under any
such contract; and
‘‘(IV) all property securing or any
other credit enhancement for any con-
tract described in subclause (I) or any
claim described in subclause (II) or
(III) under any such contract; or
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‘‘(ii) transfer none of the qualified fi-
nancial contracts, claims, property, or other
credit enhancement referred to in clause (i)
(with respect to such person and any affil-
iate of such person).
‘‘(B) TRANSFER TO FOREIGN BANK, FOR-
EIGN
FINANCIAL
INSTITUTION, OR
BRANCH
OR
AGENCY OF A FOREIGN BANK OR FINANCIAL IN-
STITUTION.—In transferring any qualified fi-
nancial contract and related claims and prop-
erty pursuant to subparagraph (A)(i), the con-
servator or receiver for the depository institution
shall not make such transfer to a foreign bank,
financial institution organized under the laws of
a foreign country, or a branch or agency of a
foreign bank or financial institution unless,
under the law applicable to such bank, financial
institution, branch, or agency, to the qualified fi-
nancial contract, and to any netting contract,
any security agreement or arrangement or other
credit enhancement related to 1 or more qualified
financial contracts the contractual rights of the
parties to such qualified financial contracts, net-
ting contracts, security agreements, or arrange-
ments, or other credit enhancements are enforce-
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able substantially to the same extent as per-
mitted under this section.
‘‘(C) TRANSFER OF CONTRACT SUBJECT TO
THE RULES OF A CLEARING ORGANIZATION.—If
a conservator or receiver transfers any qualified
financial contract and related claims, property,
and credit enhancements pursuant to subpara-
graph (A)(i) and such contract is subject to the
rules of a clearing organization, the clearing or-
ganization shall not be required to accept the
transferee as a member by virtue of the transfer.
‘‘(D) DEFINITION.—For purposes of this
paragraph, the term ‘financial institution’
means a broker or dealer, a depository institu-
tion, a futures commission merchant, or any
other institution that the Corporation deter-
mines, by regulation, to be a financial institu-
tion.’’.
(b) NOTICE
TO QUALIFIED FINANCIAL CONTRACT
COUNTERPARTIES.—Section 11(e)(10)(A) of the Federal
Deposit Insurance Act (12 U.S.C. 1821(e)(10)(A)) is
amended by striking the flush material immediately fol-
lowing clause (ii) and inserting the following:
‘‘the conservator or receiver shall notify any per-
son who is a party to any such contract of such
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transfer by 5:00 p.m. (eastern time) on the busi-
ness day following the date of the appointment
of the receiver in the case of a receivership, or the
business day following such transfer in the case
of a conservatorship.’’.
(c) RIGHTS AGAINST RECEIVER AND TREATMENT OF
BRIDGE BANKS.—Section 11(e)(10) of the Federal Deposit
Insurance Act (12 U.S.C. 1821(e)(10)) is amended—
(1) by redesignating subparagraph (B) as sub-
paragraph (D); and
(2) by inserting after subparagraph (A) the fol-
lowing:
‘‘(B) CERTAIN
RIGHTS
NOT
ENFORCE-
ABLE.—
‘‘(i) RECEIVERSHIP.—A person who is
a party to a qualified financial contract
with an insured depository institution may
not exercise any right such person has to
terminate, liquidate, or net such contract
under paragraph (8)(A) or section 403 or
404 of the Federal Deposit Insurance Cor-
poration Improvement Act of 1991, solely
by reason of or incidental to the appoint-
ment of a receiver for the depository institu-
tion (or the insolvency or financial condi-
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tion of the depository institution for which
the receiver has been appointed)—
‘‘(I) until 5:00 p.m. (eastern time)
on the business day following the date
of the appointment of the receiver; or
‘‘(II) after the person has received
notice that the contract has been trans-
ferred pursuant to paragraph (9)(A).
‘‘(ii) CONSERVATORSHIP.—A person
who is a party to a qualified financial con-
tract with an insured depository institution
may not exercise any right such person has
to terminate, liquidate, or net such contract
under paragraph (8)(E) or section 403 or
404 of the Federal Deposit Insurance Cor-
poration Improvement Act of 1991, solely
by reason of or incidental to the appoint-
ment of a conservator for the depository in-
stitution (or the insolvency or financial
condition of the depository institution for
which the conservator has been appointed).
‘‘(iii) NOTICE.—For purposes of this
paragraph, the Corporation as receiver or
conservator of an insured depository insti-
tution shall be deemed to have notified a
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person who is a party to a qualified finan-
cial contract with such depository institu-
tion if the Corporation has taken steps rea-
sonably calculated to provide notice to such
person by the time specified in subpara-
graph (A).
‘‘(C) TREATMENT OF BRIDGE BANKS.—A fi-
nancial institution for which a conservator, re-
ceiver, trustee in bankruptcy, or other legal cus-
todian has been appointed or that is otherwise
the subject of a bankruptcy or insolvency pro-
ceeding for purposes of subsection (e)(9) does not
include—
‘‘(i) a bridge bank; or
‘‘(ii) a depository institution organized
by the Corporation, for which a conservator
is appointed either—
‘‘(I) immediately upon the organi-
zation of the institution; or
‘‘(II) at the time of a purchase
and assumption transaction between
such institution and the Corporation
as receiver for a depository institution
in default.’’.
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SEC. 1605. AMENDMENTS RELATING TO DISAFFIRMANCE OR
REPUDIATION 
OF 
QUALIFIED 
FINANCIAL
CONTRACTS.
Section 11(e) of the Federal Deposit Insurance Act (12
U.S.C. 1821(e)) is amended—
(1) by redesignating paragraphs (11) through
(15) as paragraphs (12) through (16), respectively;
(2) in paragraph (8)(C)(i), by striking ‘‘(11)’’
and inserting ‘‘(12)’’;
(3) in paragraph (8)(E), by striking ‘‘(12)’’ and
inserting ‘‘(13)’’; and
(4) by inserting after paragraph (10) the fol-
lowing:
‘‘(11) DISAFFIRMANCE
OR
REPUDIATION
OF
QUALIFIED FINANCIAL CONTRACTS.—In exercising the
right to disaffirm or repudiate with respect to any
qualified financial contract to which an insured de-
pository institution is a party, the conservator or re-
ceiver for such institution shall either—
‘‘(A) disaffirm or repudiate all qualified fi-
nancial contracts between—
‘‘(i) any person or any affiliate of such
person; and
‘‘(ii) the depository institution in de-
fault; or
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‘‘(B) disaffirm or repudiate none of the
qualified financial contracts referred to in sub-
paragraph (A) (with respect to such person or
any affiliate of such person).’’.
SEC. 1606. CLARIFYING AMENDMENT RELATING TO MASTER
AGREEMENTS.
Section 11(e)(8)(D)(vii) of the Federal Deposit Insur-
ance Act (12 U.S.C. 1821(e)(8)(D)(vii)) is amended to read
as follows:
‘‘(vii) TREATMENT OF MASTER AGREE-
MENT
AS
AGREEMENT.—Any master
agreement for any contract or agreement de-
scribed in any preceding clause of this sub-
paragraph (or any master agreement for
such master agreement or agreements), to-
gether with all supplements to such master
agreement, shall be treated as a single
agreement and a single qualified financial
contract. If a master agreement contains
provisions relating to agreements or trans-
actions that are not themselves qualified fi-
nancial contracts, the master agreement
shall be deemed to be a qualified financial
contract only with respect to those trans-
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actions that are themselves qualified finan-
cial contracts.’’.
SEC. 1607. FEDERAL DEPOSIT INSURANCE CORPORATION
IMPROVEMENT ACT OF 1991.
(a) DEFINITIONS.—Section 402 of the Federal Deposit
Insurance Corporation Improvement Act of 1991 (12 U.S.C.
4402) is amended—
(1) in paragraph (6)—
(A) by redesignating subparagraphs (B)
through (D) as subparagraphs (C) through (E),
respectively;
(B) by inserting after subparagraph (A) the
following:
‘‘(B) an uninsured national bank or an un-
insured State bank that is a member of the Fed-
eral Reserve System, if the national bank or
State member bank is not eligible to make appli-
cation to become an insured bank under section
5 of the Federal Deposit Insurance Act;’’; and
(C) by striking subparagraph (C) (as redes-
ignated) and inserting the following:
‘‘(C) a branch or agency of a foreign bank,
a foreign bank and any branch or agency of the
foreign bank, or the foreign bank that established
the branch or agency, as those terms are defined
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in section 1(b) of the International Banking Act
of 1978;’’;
(2) in paragraph (11), by inserting before the pe-
riod ‘‘and any other clearing organization with which
such clearing organization has a netting contract’’;
(3) in paragraph (14)(A), by striking clause (i)
and inserting the following:
‘‘(i) means a contract or agreement be-
tween 2 or more financial institutions,
clearing organizations, or members that
provides for netting present or future pay-
ment obligations or payment entitlements
(including liquidation or closeout values re-
lating to such obligations or entitlements)
among the parties to the agreement; and’’;
and
(4) by adding at the end the following:
‘‘(15) PAYMENT.—The term ‘payment’ means a
payment of United States dollars, another currency,
or a composite currency, and a noncash delivery, in-
cluding a payment or delivery to liquidate an
unmatured obligation.’’.
(b) ENFORCEABILITY OF BILATERAL NETTING CON-
TRACTS.—Section 403 of the Federal Deposit Insurance
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HR 833 EAS
Corporation Improvement Act of 1991 (12 U.S.C. 4403) is
amended—
(1) by striking subsection (a) and inserting the
following:
‘‘(a) GENERAL RULE.—Notwithstanding any other
provision of Federal or State law (other than paragraphs
(8)(E), (8)(F), and (10)(B) of section 11(e) of the Federal
Deposit Insurance Act or any order authorized under sec-
tion 5(b)(2) of the Securities Investor Protection Act of
1970, the covered contractual payment obligations and the
covered contractual payment entitlements between any 2 fi-
nancial institutions shall be netted in accordance with, and
subject to the conditions of, the terms of any applicable net-
ting contract (except as provided in section 561(b)(2) of
title 11, United States Code).’’; and
(2) by adding at the end the following:
‘‘(f) ENFORCEABILITY OF SECURITY AGREEMENTS.—
The provisions of any security agreement or arrangement
or other credit enhancement related to 1 or more netting
contracts between any 2 financial institutions shall be en-
forceable in accordance with their terms (except as provided
in section 561(b)(2) of title 11, United States Code) and
shall not be stayed, avoided, or otherwise limited by any
State or Federal law (other than paragraphs (8)(E), (8)(F),
and (10)(B) of section 11(e) of the Federal Deposit Insur-
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ance Act and section 5(b)(2) of the Securities Investor Pro-
tection Act of 1970).’’.
(c) ENFORCEABILITY
OF CLEARING ORGANIZATION
NETTING CONTRACTS.—Section 404 of the Federal Deposit
Insurance Corporation Improvement Act of 1991 (12 U.S.C.
4404) is amended—
(1) by striking subsection (a) and inserting the
following:
‘‘(a) GENERAL RULE.—Notwithstanding any other
provision of Federal or State law (other than paragraphs
(8)(E), (8)(F), and (10)(B) of section 11(e) of the Federal
Deposit Insurance Act or any order authorized under sec-
tion 5(b)(2) of the Securities Investor Protection Act of
1970) the covered contractual payment obligations and the
covered contractual payment entitlements of a member of
a clearing organization to and from all other members of
the clearing organization shall be netted in accordance with,
and subject to the conditions of, the terms of any applicable
netting contract (except as provided in section 561(b)(2) of
title 11, United States Code).’’; and
(2) by adding at the end the following:
‘‘(h) ENFORCEABILITY OF SECURITY AGREEMENTS.—
The provisions of any security agreement or arrangement
or other credit enhancement related to 1 or more netting
contracts between any 2 members of a clearing organization
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shall be enforceable in accordance with their terms (except
as provided in section 561(b)(2) of title 11, United States
Code) and shall not be stayed, avoided, or otherwise limited
by any State or Federal law (other than paragraphs (8)(E),
(8)(F), and (10)(B) of section 11(e) of the Federal Deposit
Insurance Act and section 5(b)(2) of the Securities Investor
Protection Act of 1970).’’.
(d) ENFORCEABILITY
OF CONTRACTS WITH UNIN-
SURED
NATIONAL
BANKS
AND
UNINSURED
FEDERAL
BRANCHES AND AGENCIES.—The Federal Deposit Insur-
ance Corporation Improvement Act of 1991 (12 U.S.C. 4401
et seq.) is amended by adding at the end the following:
‘‘SEC. 408. TREATMENT OF CONTRACTS WITH UNINSURED
NATIONAL BANKS AND UNINSURED FEDERAL
BRANCHES AND AGENCIES.
‘‘(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, paragraphs (8), (9), (10), and (11) of section
11(e) of the Federal Deposit Insurance Act shall apply to
an uninsured national bank or uninsured Federal branch
or Federal agency, except that for such purpose—
‘‘(1) any reference to the ‘Corporation as re-
ceiver’ or ‘the receiver or the Corporation’ shall refer
to the receiver of an uninsured national bank or un-
insured Federal branch or Federal agency appointed
by the Comptroller of the Currency;
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‘‘(2) any reference to the ‘Corporation’ (other
than in section 11(e)(8)(D) of that Act), the ‘Corpora-
tion, whether acting as such or as conservator or re-
ceiver’, a ‘receiver’, or a ‘conservator’ shall refer to the
receiver or conservator of an uninsured national bank
or uninsured Federal branch or Federal agency ap-
pointed by the Comptroller of the Currency; and
‘‘(3) any reference to an ‘insured depository in-
stitution’ or ‘depository institution’ shall refer to an
uninsured national bank or an uninsured Federal
branch or Federal agency.
‘‘(b) LIABILITY.—The liability of a receiver or conser-
vator of an uninsured national bank or uninsured Federal
branch or agency shall be determined in the same manner
and subject to the same limitations that apply to receivers
and conservators of insured depository institutions under
section 11(e) of the Federal Deposit Insurance Act.
‘‘(c) REGULATORY AUTHORITY.—
‘‘(1) IN GENERAL.—The Comptroller of the Cur-
rency, in consultation with the Federal Deposit In-
surance Corporation, may promulgate regulations to
implement this section.
‘‘(2) SPECIFIC REQUIREMENT.—In promulgating
regulations to implement this section, the Comptroller
of the Currency shall ensure that the regulations gen-
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erally are consistent with the regulations and policies
of the Federal Deposit Insurance Corporation adopted
pursuant to the Federal Deposit Insurance Act.
‘‘(d) DEFINITIONS.—For purposes of this section, the
terms ‘Federal branch’, ‘Federal agency’, and ‘foreign bank’
have the same meanings as in section 1(b) of the Inter-
national Banking Act of 1978.’’.
SEC. 1608. RECORDKEEPING REQUIREMENTS.
Section 11(e)(8) of the Federal Deposit Insurance Act
(12 U.S.C. 1821(e)(8)) is amended by adding at the end
the following:
‘‘(H) RECORDKEEPING
REQUIREMENTS.—
The Corporation, in consultation with the appro-
priate Federal banking agencies, may prescribe
regulations requiring more detailed record-
keeping with respect to qualified financial con-
tracts (including market valuations) by insured
depository institutions.’’.
SEC. 1609. EXEMPTIONS FROM CONTEMPORANEOUS EXECU-
TION REQUIREMENT.
Section 13(e)(2) of the Federal Deposit Insurance Act
(12 U.S.C. 1823(e)(2)) is amended to read as follows:
‘‘(2) EXEMPTIONS
FROM
CONTEMPORANEOUS
EXECUTION REQUIREMENT.—
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‘‘(A) IN GENERAL.—An agreement described
in subparagraph (B) shall not be deemed to be
invalid pursuant to paragraph (1)(B) solely on
the basis—
‘‘(i) that the agreement was not exe-
cuted contemporaneously with the acquisi-
tion of the collateral; or
‘‘(ii) of any pledge, delivery, or substi-
tution of the collateral made in accordance
with the agreement.
‘‘(B) AGREEMENT DESCRIBED.—An agree-
ment is described in this subparagraph if it is
an 
agreement 
to 
provide 
for 
the 
lawful
collateralization of—
‘‘(i) deposits of, or other credit exten-
sion by, a Federal, State, or local govern-
mental entity, or of any depositor referred
to in section 11(a)(2), including an agree-
ment to provide collateral in lieu of a sur-
ety bond;
‘‘(ii) securities deposited under section
345(b)(2) of title 11, United States Code;
‘‘(iii) extensions of credit, including an
overdraft, from a Federal reserve bank or
Federal home loan bank; or
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‘‘(iv) 1 or more qualified financial con-
tracts (as defined in section 11(e)(8)(D)).’’.
SEC. 1610. SIPC STAY.
Section 5(b)(2) of the Securities Investor Protection
Act of 1970 (15 U.S.C. 78eee(b)(2)) is amended by adding
at the end the following:
‘‘(C) EXCEPTION FROM STAY.—
‘‘(i) IN
GENERAL.—Notwithstanding
section 362 of title 11, United States Code,
neither the filing of an application under
subsection (a)(3) of this section nor any
order or decree obtained by SIPC from the
court shall operate as a stay of any contrac-
tual right of a creditor to liquidate, termi-
nate, or accelerate a securities contract,
commodity contract, forward contract, re-
purchase agreement, swap agreement, or
master netting agreement, each as defined
in title 11, United States Code, to offset or
net termination values, payment amounts,
or other transfer obligations arising under
or in connection with 1 or more of such
contracts or agreements, or to foreclose on
any cash collateral pledged by the debtor,
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whether or not with respect to 1 or more of
such contracts or agreements.
‘‘(ii) STAYS ON FORECLOSURE.—Not-
withstanding clause (i), an application,
order, or decree described therein may oper-
ate as a stay of the foreclosure on securities
collateral pledged by the debtor, whether or
not with respect to 1 or more of such con-
tracts or agreements, securities sold by the
debtor under a repurchase agreement or se-
curities lent under a securities lending
agreement.
‘‘(iii) DEFINITION.—As used in this
section, 
the 
term 
‘contractual 
right’
includes—
‘‘(I) a right set forth in a rule or
bylaw of a national securities ex-
change, a national securities associa-
tion, or a securities clearing agency;
‘‘(II) a right set forth in a bylaw
of a clearing organization or contract
market or in a resolution of the gov-
erning board thereof; and
‘‘(III) a right, whether or not in
writing, arising under common law,
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under law merchant, or by reason of
normal business practice.’’.
SEC. 1611. FEDERAL RESERVE COLLATERAL REQUIRE-
MENTS.
Section 16 of the Federal Reserve Act (12 U.S.C. 412)
is amended in the third sentence of the second undesignated
paragraph, by striking ‘‘acceptances acquired under section
13 of this Act’’ and inserting ‘‘acceptances acquired under
section 10A, 10B, 13, or 13A’’.
SEC. 1612. EFFECTIVE DATE; APPLICATION OF AMEND-
MENTS.
(a) SEVERABILITY.—If any provision of this title or
any amendment made by this title, or the application of
any such provision or amendment to any person or cir-
cumstance, is held to be unconstitutional, the remaining
provisions of and amendments made by this title and the
application of such other provisions and amendments to
any person or circumstance shall not be affected thereby.
(b) EFFECTIVE DATE.—This title and the amendments
made by this title shall take effect on the date of enactment
of this Act.
(c) APPLICATION OF AMENDMENTS.—The amendments
made by this title shall apply with respect to cases com-
menced or appointments made under any Federal or State
law after the date of enactment of this Act, but shall not
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apply with respect to cases commenced or appointments
made under any Federal or State law before the date of
enactment of this Act.
TITLE 
XVII—METHAMPHET-
AMINE 
AND 
OTHER 
CON-
TROLLED SUBSTANCES
SEC. 1701. SHORT TITLE.
This title may be cited as the ‘‘Methamphetamine
Anti-Proliferation Act of 2000’’.
Subtitle A—Methamphetamine
Production, Trafficking, and Abuse
CHAPTER 1—CRIMINAL PENALTIES
SEC. 1711. ENHANCED PUNISHMENT OF AMPHETAMINE
LABORATORY OPERATORS.
(a) AMENDMENT TO FEDERAL SENTENCING GUIDE-
LINES.—Pursuant to its authority under section 994(p) of
title 28, United States Code, the United States Sentencing
Commission shall amend the Federal sentencing guidelines
in accordance with this section with respect to any offense
relating to the manufacture, importation, exportation, or
trafficking in amphetamine (including an attempt or con-
spiracy to do any of the foregoing) in violation of—
(1) the Controlled Substances Act (21 U.S.C. 801
et seq.);
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(2) the Controlled Substances Import and Export
Act (21 U.S.C. 951 et seq.); or
(3) the Maritime Drug Law Enforcement Act (46
U.S.C. App. 1901 et seq.).
(b) GENERAL REQUIREMENT.—In carrying out this
section, the United States Sentencing Commission shall,
with respect to each offense described in subsection (a) relat-
ing to amphetamine—
(1) review and amend its guidelines to provide
for increased penalties such that those penalties are
comparable to the base offense level for methamphet-
amine; and
(2) take any other action the Commission con-
siders necessary to carry out this subsection.
(c) ADDITIONAL REQUIREMENTS.—In carrying out
this section, the United States Sentencing Commission shall
ensure that the sentencing guidelines for offenders convicted
of offenses described in subsection (a) reflect the heinous na-
ture of such offenses, the need for aggressive law enforcement
action to fight such offenses, and the extreme dangers associ-
ated with unlawful activity involving amphetamines,
including—
(1) the rapidly growing incidence of amphet-
amine abuse and the threat to public safety that such
abuse poses;
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(2) the high risk of amphetamine addiction;
(3) the increased risk of violence associated with
amphetamine trafficking and abuse; and
(4) the recent increase in the illegal importation
of amphetamine and precursor chemicals.
(d) EMERGENCY AUTHORITY TO SENTENCING COMMIS-
SION.—The United States Sentencing Commission shall
promulgate amendments pursuant to this section as soon
as practicable after the date of the enactment of this Act
in accordance with the procedure set forth in section 21(a)
of the Sentencing Act of 1987 (Public Law 100–182), as
though the authority under that Act had not expired.
SEC. 1712. ENHANCED PUNISHMENT OF AMPHETAMINE OR
METHAMPHETAMINE 
LABORATORY 
OPERA-
TORS.
(a) FEDERAL SENTENCING GUIDELINES.—
(1) IN
GENERAL.—Pursuant to its authority
under section 994(p) of title 28, United States Code,
the United States Sentencing Commission shall
amend the Federal sentencing guidelines in accord-
ance with paragraph (2) with respect to any offense
relating to the manufacture, attempt to manufacture,
or conspiracy to manufacture amphetamine or meth-
amphetamine in violation of—
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(A) the Controlled Substances Act (21
U.S.C. 801 et seq.);
(B) the Controlled Substances Import and
Export Act (21 U.S.C. 951 et seq.); or
(C) the Maritime Drug Law Enforcement
Act (46 U.S.C. App. 1901 et seq.).
(2) REQUIREMENTS.—In carrying out this para-
graph, the United States Sentencing Commission
shall—
(A) if the offense created a substantial risk
of harm to human life (other than a life de-
scribed in subparagraph (B)) or the environ-
ment, increase the base offense level for the
offense—
(i) by not less than 3 offense levels
above the applicable level in effect on the
date of the enactment of this Act; or
(ii) if the resulting base offense level
after an increase under clause (i) would be
less than level 27, to not less than level 27;
or
(B) if the offense created a substantial risk
of harm to the life of a minor or incompetent,
increase the base offense level for the offense—
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(i) by not less than 6 offense levels
above the applicable level in effect on the
date of the enactment of this Act; or
(ii) if the resulting base offense level
after an increase under clause (i) would be
less than level 30, to not less than level 30.
(3) EMERGENCY
AUTHORITY
TO
SENTENCING
COMMISSION.—The United States Sentencing Com-
mission shall promulgate amendments pursuant to
this subsection as soon as practicable after the date of
enactment of this Act in accordance with the proce-
dure set forth in section 21(a) of the Sentencing Act
of 1987 (Public Law 100–182), as though the author-
ity under that Act had not expired.
(b) EFFECTIVE DATE.—The amendments made pursu-
ant to this section shall apply with respect to any offense
occurring on or after the date that is 60 days after the date
of enactment of this Act.
SEC. 1713. MANDATORY RESTITUTION FOR VIOLATIONS OF
CONTROLLED SUBSTANCES ACT AND CON-
TROLLED SUBSTANCES IMPORT AND EXPORT
ACT RELATING TO AMPHETAMINE AND METH-
AMPHETAMINE.
(a) MANDATORY RESTITUTION.—Section 413(q) of the
Controlled Substances Act (21 U.S.C. 853(q)) is amended—
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(1) in the matter preceding paragraph (1), by
striking ‘‘may’’ and inserting ‘‘shall’’;
(2) by inserting ‘‘amphetamine or’’ before ‘‘meth-
amphetamine’’ each place it appears;
(3) in paragraph (2)—
(A) by inserting ‘‘, the State or local gov-
ernment concerned, or both the United States
and the State or local government concerned’’
after ‘‘United States’’ the first place it appears;
and
(B) by inserting ‘‘or the State or local gov-
ernment concerned, as the case may be,’’ after
‘‘United States’’ the second place it appears; and
(4) in paragraph (3), by striking ‘‘section 3663
of title 18, United States Code’’ and inserting ‘‘sec-
tion 3663A of title 18, United States Code’’.
(b) DEPOSIT OF AMOUNTS IN DEPARTMENT OF JUS-
TICE ASSETS FORFEITURE FUND.—Section 524(c)(4) of
title 28, United States Code, is amended—
(1) by striking ‘‘and’’ at the end of subpara-
graph (B);
(2) by striking the period at the end of subpara-
graph (C) and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(D) all amounts collected—
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‘‘(i) by the United States pursuant to a re-
imbursement order under paragraph (2) of sec-
tion 413(q) of the Controlled Substances Act (21
U.S.C. 853(q)); and
‘‘(ii) pursuant to a restitution order under
paragraph (1) or (3) of section 413(q) of the
Controlled Substances Act for injuries to the
United States.’’.
(c) CLARIFICATION OF CERTAIN ORDERS OF RESTITU-
TION.—Section 3663(c)(2)(B) of title 18, United States
Code, is amended by inserting ‘‘which may be’’ after ‘‘the
fine’’.
(d) EXPANSION
OF APPLICABILITY
OF MANDATORY
RESTITUTION.—Section 3663A(c)(1)(A)(ii) of title 18,
United States Code, is amended by inserting ‘‘or under sec-
tion 416(a) of the Controlled Substances Act (21 U.S.C.
856(a)),’’ after ‘‘under this title,’’.
(e) TREATMENT OF ILLICIT SUBSTANCE MANUFAC-
TURING OPERATIONS AS CRIMES AGAINST PROPERTY.—
Section 416 of the Controlled Substances Act (21 U.S.C.
856) is amended by adding at the end the following new
subsection:
‘‘(c) A violation of subsection (a) shall be considered
an offense against property for purposes of section
3663A(c)(1)(A)(ii) of title 18, United States Code.’’.
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SEC. 1714. METHAMPHETAMINE PARAPHERNALIA.
Section 422(d) of the Controlled Substances Act (21
U.S.C. 863(d)) is amended in the matter preceding para-
graph (1) by inserting ‘‘methamphetamine,’’ after ‘‘PCP,’’.
CHAPTER 2—ENHANCED LAW
ENFORCEMENT
SEC. 1721. ENVIRONMENTAL HAZARDS ASSOCIATED WITH
ILLEGAL MANUFACTURE OF AMPHETAMINE
AND METHAMPHETAMINE.
(a) USE OF AMOUNTS OR DEPARTMENT OF JUSTICE
ASSETS FORFEITURE FUND.—Section 524(c)(1)(E) of title
28, United States Code, is amended—
(1) by inserting ‘‘(i) for’’ before ‘‘disbursements’’;
(2) by inserting ‘‘and’’ after the semicolon; and
(3) by adding at the end the following:
‘‘(ii) for payment for—
‘‘(I) costs incurred by or on behalf of the
Department of Justice in connection with the re-
moval, for purposes of Federal forfeiture and dis-
position, of any hazardous substance or pollutant
or contaminant associated with the illegal manu-
facture of amphetamine or methamphetamine;
and
‘‘(II) costs incurred by or on behalf of a
State or local government in connection with
such removal in any case in which such State or
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local government has assisted in a Federal pros-
ecution relating to amphetamine or methamphet-
amine, to the extent such costs exceed equitable
sharing payments made to such State or local
government in such case;’’.
(b) GRANTS UNDER DRUG CONTROL AND SYSTEM IM-
PROVEMENT GRANT PROGRAM.—Section 501(b)(3) of the
Omnibus Crime Control and Safe Streets Act of 1968 is
amended by inserting before the semicolon the following:
‘‘and to remove any hazardous substance or pollutant or
contaminant associated with the illegal manufacture of am-
phetamine or methamphetamine’’.
(c) AMOUNTS SUPPLEMENT AND NOT SUPPLANT.—
(1) ASSETS FORFEITURE FUND.—Any amounts
made available from the Department of Justice Assets
Forfeiture Fund in a fiscal year by reason of the
amendment made by subsection (a) shall supplement,
and not supplant, any other amounts made available
to the Department of Justice in such fiscal year from
other sources for payment of costs described in section
524(c)(1)(E)(ii) of title 28, United States Code, as so
amended.
(2) GRANT
PROGRAM.—Any amounts made
available in a fiscal year under the grant program
under section 501(b)(3) of the Omnibus Crime Con-
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trol and Safe Streets Act of 1968 for the removal of
hazardous substances or pollutants or contaminants
associated with the illegal manufacture of amphet-
amine or methamphetamine by reason of the amend-
ment made by subsection (b) shall supplement, and
not supplant, any other amounts made available in
such fiscal year from other sources for such removal.
SEC. 1722. REDUCTION IN RETAIL SALES TRANSACTION
THRESHOLD FOR NON-SAFE HARBOR PROD-
UCTS CONTAINING PSEUDOEPHEDRINE OR
PHENLYPROPANOLAMINE.
(a) REDUCTION IN TRANSACTION THRESHOLD.—Sec-
tion 102(39)(A)(iv)(II) of the Controlled Substances Act (21
U.S.C. 802(39)(A)(iv)(II) is amended—
(1) by striking ‘‘24 grams’’ both places it ap-
pears and inserting ‘‘9 grams’’; and
(2) by inserting before the semicolon at the end
the following: ‘‘and sold in package sizes of not more
than 3 grams of pseudoephedrine base or 3 grams of
phenylpropanolamine base’’.
(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall take effect one year after the date of the
enactment of this Act.
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SEC. 1723. TRAINING FOR DRUG ENFORCEMENT ADMINIS-
TRATION AND STATE AND LOCAL LAW EN-
FORCEMENT 
PERSONNEL 
RELATING 
TO
CLANDESTINE LABORATORIES.
(a) IN GENERAL.—
(1) REQUIREMENT.—The Administrator of the
Drug Enforcement Administration shall carry out the
programs described in subsection (b) with respect to
the law enforcement personnel of States and localities
determined by the Administrator to have significant
levels of methamphetamine-related or amphetamine-
related crime or projected by the Administrator to
have the potential for such levels of crime in the fu-
ture.
(2) DURATION.—The duration of any program
under that subsection may not exceed 3 years.
(b) COVERED PROGRAMS.—The programs described in
this subsection are as follows:
(1) ADVANCED
MOBILE
CLANDESTINE
LABORA-
TORY TRAINING TEAMS.—A program of advanced mo-
bile clandestine laboratory training teams, which
shall provide information and training to State and
local law enforcement personnel in techniques utilized
in conducting undercover investigations and con-
spiracy cases, and other information designed to as-
sist in the investigation of the illegal manufacturing
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and trafficking of amphetamine and methamphet-
amine.
(2) BASIC CLANDESTINE LABORATORY CERTIFI-
CATION TRAINING.—A program of basic clandestine
laboratory certification training, which shall provide
information and training—
(A) to Drug Enforcement Administration
personnel and State and local law enforcement
personnel for purposes of enabling such personnel
to meet any certification requirements under law
with respect to the handling of wastes created by
illegal amphetamine and methamphetamine lab-
oratories; and
(B) to State and local law enforcement per-
sonnel for purposes of enabling such personnel to
provide the information and training covered by
subparagraph (A) to other State and local law
enforcement personnel.
(3) 
CLANDESTINE
LABORATORY
RECERTIFI-
CATION AND AWARENESS TRAINING.—A program of
clandestine laboratory recertification and awareness
training, which shall provide information and train-
ing to State and local law enforcement personnel for
purposes of enabling such personnel to provide recer-
tification and awareness training relating to clandes-
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tine laboratories to additional State and local law en-
forcement personnel.
(c) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated for each of fiscal years 2000,
2001, and 2002 amounts as follows:
(1) $1,500,000 to carry out the program de-
scribed in subsection (b)(1).
(2) $3,000,000 to carry out the program de-
scribed in subsection (b)(2).
(3) $1,000,000 to carry out the program de-
scribed in subsection (b)(3).
SEC. 1724. COMBATING METHAMPHETAMINE AND AMPHET-
AMINE IN HIGH INTENSITY DRUG TRAF-
FICKING AREAS.
(a) IN GENERAL.—
(1) IN
GENERAL.—The Director of National
Drug Control Policy shall use amounts available
under this section to combat the trafficking of meth-
amphetamine and amphetamine in areas designated
by the Director as high intensity drug trafficking
areas.
(2) ACTIVITIES.—In meeting the requirement in
paragraph (1), the Director shall provide funds for—
(A) employing additional Federal law en-
forcement personnel, or facilitating the employ-
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ment of additional State and local law enforce-
ment personnel, including agents, investigators,
prosecutors, laboratory technicians, chemists, in-
vestigative assistants, and drug-prevention spe-
cialists; and
(B) such other activities as the Director
considers appropriate.
(b) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to carry out this section—
(1) $15,000,000 for fiscal year 2000; and
(2) such sums as may be necessary for each of
fiscal years 2001 through 2004.
(c) APPORTIONMENT OF FUNDS.—
(1) FACTORS IN APPORTIONMENT.—The Director
shall apportion amounts appropriated for a fiscal
year pursuant to the authorization of appropriations
in subsection (b) for activities under subsection (a)
among and within areas designated by the Director
as high intensity drug trafficking areas based on the
following factors:
(A) The number of methamphetamine man-
ufacturing facilities and amphetamine manufac-
turing facilities discovered by Federal, State, or
local law enforcement officials in the previous
fiscal year.
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(B) The number of methamphetamine pros-
ecutions and amphetamine prosecutions in Fed-
eral, State, or local courts in the previous fiscal
year.
(C) The number of methamphetamine ar-
rests and amphetamine arrests by Federal, State,
or local law enforcement officials in the previous
fiscal year.
(D) The amounts of methamphetamine, am-
phetamine, or listed chemicals (as that term is
defined in section 102(33) of the Controlled Sub-
stances Act (21 U.S.C. 802(33)) seized by Fed-
eral, State, or local law enforcement officials in
the previous fiscal year.
(E) Intelligence and predictive data from
the Drug Enforcement Administration and the
Department of Health and Human Services
showing patterns and trends in abuse, traf-
ficking, and transportation in methamphet-
amine, amphetamine, and listed chemicals (as
that term is so defined).
(2) CERTIFICATION.—Before the Director appor-
tions any funds under this subsection to a high inten-
sity drug trafficking area, the Director shall certify
that the law enforcement entities responsible for clan-
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destine methamphetamine and amphetamine labora-
tory seizures in that area are providing laboratory
seizure data to the national clandestine laboratory
database at the El Paso Intelligence Center.
(d) LIMITATION
ON ADMINISTRATIVE COSTS.—Not
more than 5 percent of the amount appropriated in a fiscal
year pursuant to the authorization of appropriations for
that fiscal year in subsection (b) may be available in that
fiscal year for administrative costs associated with activi-
ties under subsection (a).
SEC. 1725. COMBATING AMPHETAMINE AND METHAMPHET-
AMINE MANUFACTURING AND TRAFFICKING.
(a) ACTIVITIES.—In order to combat the illegal manu-
facturing and trafficking in amphetamine and meth-
amphetamine, the Administrator of the Drug Enforcement
Administration may—
(1) assist State and local law enforcement in
small and mid-sized communities in all phases of in-
vestigations related to such manufacturing and traf-
ficking, including assistance with foreign-language
interpretation;
(2) staff additional regional enforcement and
mobile enforcement teams related to such manufac-
turing and trafficking;
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(3) establish additional resident offices and posts
of duty to assist State and local law enforcement in
rural areas in combating such manufacturing and
trafficking;
(4) provide the Special Operations Division of
the Administration with additional agents and staff
to collect, evaluate, interpret, and disseminate critical
intelligence targeting the command and control oper-
ations of major amphetamine and methamphetamine
manufacturing and trafficking organizations;
(5) enhance the investigative and related func-
tions of the Chemical Control Program of the Admin-
istration to implement more fully the provisions of
the Comprehensive Methamphetamine Control Act of
1996 (Public Law 104–237);
(6) design an effective means of requiring an ac-
curate accounting of the import and export of list I
chemicals, and coordinate investigations relating to
the diversion of such chemicals;
(7) develop a computer infrastructure sufficient
to receive, process, analyze, and redistribute time-sen-
sitive enforcement information from suspicious order
reporting to field offices of the Administration and
other law enforcement and regulatory agencies, in-
cluding the continuing development of the Suspicious
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Order Reporting and Tracking System (SORTS) and
the Chemical Transaction Database (CTRANS) of the
Administration;
(8) establish an education, training, and com-
munication process in order to alert the industry to
current trends and emerging patterns in the illegal
manufacturing of amphetamine and methamphet-
amine; and
(9) carry out such other activities as the Admin-
istrator considers appropriate.
(b) ADDITIONAL POSITIONS AND PERSONNEL.—
(1) IN
GENERAL.—In carrying out activities
under subsection (a), the Administrator may establish
in the Administration not more than 50 full-time po-
sitions, including not more than 31 special-agent po-
sitions, and may appoint personnel to such positions.
(2) PARTICULAR
POSITIONS.—In carrying out
activities under paragraphs (5) through (8) of sub-
section (a), the Administrator may establish in the
Administration not more than 15 full-time positions,
including not more than 10 diversion investigator po-
sitions, and may appoint personnel to such positions.
Any positions established under this paragraph are in
addition to any positions established under para-
graph (1).
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(c) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated for the Drug Enforcement
Administration for each fiscal year after fiscal year 1999,
$9,500,000 for purposes of carrying out the activities au-
thorized by subsection (a) and employing personnel in posi-
tions established under subsection (b), of which $3,000,000
shall be available for activities under paragraphs (5)
through (8) of subsection (a) and employing personnel in
positions established under subsection (b)(2).
CHAPTER 3—ABUSE PREVENTION AND
TREATMENT
SEC. 1731. EXPANSION OF METHAMPHETAMINE RESEARCH.
Section 464N of the Public Health Service Act (42
U.S.C. 285o–2) is amended by adding at the end the fol-
lowing:
‘‘(c) METHAMPHETAMINE RESEARCH.—
‘‘(1) GRANTS OR COOPERATIVE AGREEMENTS.—
The Director of the Institute may make grants or
enter into cooperative agreements to expand the cur-
rent and on-going interdisciplinary research and
clinical trials with treatment centers of the National
Drug Abuse Treatment Clinical Trials Network relat-
ing to methamphetamine abuse and addiction and
other biomedical, behavioral, and social issues related
to methamphetamine abuse and addiction.
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‘‘(2) USE OF FUNDS.—Amounts made available
under a grant or cooperative agreement under para-
graph (1) for methamphetamine abuse and addiction
may be used for research and clinical trials relating
to—
‘‘(A) the effects of methamphetamine abuse
on the human body, including the brain;
‘‘(B) the addictive nature of methamphet-
amine and how such effects differ with respect to
different individuals;
‘‘(C) the connection between methamphet-
amine abuse and mental health;
‘‘(D) the identification and evaluation of
the most effective methods of prevention of meth-
amphetamine abuse and addiction;
‘‘(E) the identification and development of
the most effective methods of treatment of meth-
amphetamine 
addiction, 
including 
pharma-
cological treatments;
‘‘(F) risk factors for methamphetamine
abuse;
‘‘(G) effects of methamphetamine abuse and
addiction on pregnant women and their fetuses;
and
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‘‘(H) cultural, social, behavioral, neuro-
logical and psychological reasons that individ-
uals abuse methamphetamine, or refrain from
abusing methamphetamine.
‘‘(3) RESEARCH RESULTS.—The Director shall
promptly disseminate research results under this sub-
section to Federal, State and local entities involved in
combating methamphetamine abuse and addiction.
‘‘(4) AUTHORIZATION OF APPROPRIATIONS.—
‘‘(A) 
AUTHORIZATION
OF
APPROPRIA-
TIONS.—There is authorized to be appropriated
to carry out paragraph (1), such sums as may
be necessary for each fiscal year.
‘‘(B) 
SUPPLEMENT
NOT
SUPPLANT.—
Amounts appropriated pursuant to the author-
ization of appropriations in subparagraph (A)
for a fiscal year shall supplement and not sup-
plant any other amounts appropriated in such
fiscal year for research on methamphetamine
abuse and addiction.’’.
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SEC. 1732. METHAMPHETAMINE AND AMPHETAMINE TREAT-
MENT 
INITIATIVE 
BY 
CENTER 
FOR 
SUB-
STANCE ABUSE TREATMENT.
Subpart 1 of part B of title V of the Public Health
Service Act (42 U.S.C. 290bb et seq.) is amended by adding
at the end the following new section:
‘‘METHAMPHETAMINE AND AMPHETAMINE TREATMENT
INITIATIVE
‘‘SEC. 514. (a) GRANTS.—
‘‘(1) AUTHORITY TO MAKE GRANTS.—The Direc-
tor of the Center for Substance Abuse Treatment may
make grants to States and Indian tribes recognized by
the United States that have a high rate, or have had
a rapid increase, in methamphetamine or amphet-
amine abuse or addiction in order to permit such
States and Indian tribes to expand activities in con-
nection with the treatment of methamphetamine or
amphetamine abuser or addiction in the specific geo-
graphical areas of such States or Indian tribes, as the
case may be, where there is such a rate or has been
such an increase.
‘‘(2) RECIPIENTS.—Any grants under paragraph
(1) shall be directed to the substance abuse directors
of the States, and of the appropriate tribal govern-
ment authorities of the Indian tribes, selected by the
Director to receive such grants.
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‘‘(3) NATURE
OF
ACTIVITIES.—Any activities
under a grant under paragraph (1) shall be based on
reliable scientific evidence of their efficacy in the
treatment of methamphetamine or amphetamine
abuse or addiction.
‘‘(b) GEOGRAPHIC DISTRIBUTION.—The Director shall
ensure that grants under subsection (a) are distributed eq-
uitably among the various regions of the country and
among rural, urban, and suburban areas that are affected
by methamphetamine or amphetamine abuse or addiction.
‘‘(c) ADDITIONAL ACTIVITIES.—The Director shall—
‘‘(1) evaluate the activities supported by grants
under subsection (a);
‘‘(2) disseminate widely such significant infor-
mation derived from the evaluation as the Director
considers appropriate to assist States, Indian tribes,
and private providers of treatment services for meth-
amphetamine or amphetamine abuser or addiction in
the treatment of methamphetamine or amphetamine
abuse or addiction; and
‘‘(3) provide States, Indian tribes, and such pro-
viders with technical assistance in connection with
the provision of such treatment.
‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—
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‘‘(1) IN GENERAL.—There are authorized to be
appropriated to carry out this section $10,000,000 for
fiscal year 2000 and such sums as may be necessary
for each of fiscal years 2001 and 2002.
‘‘(2) USE OF CERTAIN FUNDS.—Of the funds ap-
propriated to carry out this section in any fiscal
year, the lesser of 5 percent of such funds or
$1,000,000 shall be available to the Director for pur-
poses of carrying out subsection (c).’’.
SEC. 1733. EXPANSION OF METHAMPHETAMINE ABUSE PRE-
VENTION EFFORTS.
(a) EXPANSION OF EFFORTS.—Section 515 of the Pub-
lic Health Service Act (42 U.S.C. 290bb–21) is amended
by adding at the end the following:
‘‘(e)(1) The Administrator may make grants to and
enter into contracts and cooperative agreements with public
and nonprofit private entities to enable such entities—
‘‘(A) to carry out school-based programs con-
cerning the dangers of abuse of and addiction to
methamphetamine and other illicit drugs, using meth-
ods that are effective and science-based, including ini-
tiatives that give students the responsibility to create
their own anti-drug abuse education programs for
their schools; and
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‘‘(B) to carry out community-based abuse and
addiction prevention programs relating to meth-
amphetamine and other illicit drugs that are effective
and science-based.
‘‘(2) Amounts made available under a grant, contract
or cooperative agreement under paragraph (1) shall be used
for planning, establishing, or administering prevention pro-
grams relating to methamphetamine and other illicit drugs
in accordance with paragraph (3).
‘‘(3)(A) Amounts provided under this subsection may
be used—
‘‘(i) to carry out school-based programs that are
focused on those districts with high or increasing
rates of methamphetamine abuse and addiction and
targeted at populations which are most at risk to
start abuse of methamphetamine and other illicit
drugs;
‘‘(ii) to carry out community-based prevention
programs that are focused on those populations with-
in the community that are most at-risk for abuse of
and addiction to methamphetamine and other illicit
drugs;
‘‘(iii) to assist local government entities to con-
duct appropriate prevention activities relating to
methamphetamine and other illicit drugs;
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‘‘(iv) to train and educate State and local law
enforcement officials, prevention and education offi-
cials, members of community anti-drug coalitions and
parents on the signs of abuse of and addiction to
methamphetamine and other illicit drugs, and the op-
tions for treatment and prevention;
‘‘(v) for planning, administration, and edu-
cational activities related to the prevention of abuse
of and addiction to methamphetamine and other il-
licit drugs;
‘‘(vi) for the monitoring and evaluation of pre-
vention activities relating to methamphetamine and
other illicit drugs, and reporting and disseminating
resulting information to the public; and
‘‘(vii) for targeted pilot programs with evalua-
tion components to encourage innovation and experi-
mentation with new methodologies.
‘‘(B) The Administrator shall give priority in making
grants under this subsection to rural and urban areas that
are experiencing a high rate or rapid increases in meth-
amphetamine abuse and addiction.
‘‘(4)(A) Not less than $500,000 of the amount available
in each fiscal year to carry out this subsection shall be made
available to the Administrator, acting in consultation with
other Federal agencies, to support and conduct periodic
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analyses and evaluations of effective prevention programs
for abuse of and addiction to methamphetamine and other
illicit drugs and the development of appropriate strategies
for disseminating information about and implementing
these programs.
‘‘(B) The Administrator shall submit to the committees
of Congress referred to in subparagraph (C) an annual re-
port with the results of the analyses and evaluation under
subparagraph (A).
‘‘(C) The committees of Congress referred to in this
subparagraph are the following:
‘‘(i) The Committees on Health, Education,
Labor, and Pensions, the Judiciary, and Appropria-
tions of the Senate.
‘‘(ii) The Committees on Commerce, the Judici-
ary, and Appropriations of the House of Representa-
tives.’’.
(b) AUTHORIZATION OF APPROPRIATIONS FOR EXPAN-
SION OF ABUSE PREVENTION EFFORTS AND PRACTITIONER
REGISTRATION REQUIREMENTS.—There is authorized to be
appropriated to carry out section 515(e) of the Public
Health Service Act (as added by subsection (a)) and section
303(g)(2) of the Controlled Substances Act (as added by sec-
tion 18(a) of this Act), $15,000,000 for fiscal year 2000,
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and such sums as may be necessary for each succeeding fis-
cal year.
SEC. 1734. STUDY OF METHAMPHETAMINE TREATMENT.
(a) STUDY.—
(1) REQUIREMENT.—The Secretary of Health
and Human Services shall, in consultation with the
Institute of Medicine of the National Academy of
Sciences, conduct a study on the development of medi-
cations for the treatment of addiction to amphetamine
and methamphetamine.
(2) REPORT.—Not later than nine months after
the date of the enactment of this Act, the Secretary
shall submit to the Committees on the Judiciary of
the Senate and House of Representatives a report on
the results of the study conducted under paragraph
(1).
(b) AUTHORIZATION OF APPROPRIATIONS.—There are
hereby authorized to be appropriated for the Department
of Health and Human Services for fiscal year 2000 such
sums as may be necessary to meet the requirements of sub-
section (a).
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CHAPTER 4—REPORTS
SEC. 1741. REPORTS ON CONSUMPTION OF METHAMPHET-
AMINE AND OTHER ILLICIT DRUGS IN RURAL
AREAS, METROPOLITAN AREAS, AND CON-
SOLIDATED METROPOLITAN AREAS.
The Secretary of Health and Human Services shall in-
clude in each National Household Survey on Drug Abuse
appropriate prevalence data and information on the con-
sumption of methamphetamine and other illicit drugs in
rural areas, metropolitan areas, and consolidated metro-
politan areas.
SEC. 1742. REPORT ON DIVERSION OF ORDINARY OVER-
THE-COUNTER 
PSEUDOEPHEDRINE 
AND
PHENYLPROPANOLAMINE PRODUCTS.
(a) STUDY.—The Attorney General shall conduct a
study 
of 
the 
use 
of 
ordinary 
over-the-counter
pseudoephedrine and phenylpropanolamine products in the
clandestine production of illicit drugs. Sources of data for
the study shall include the following:
(1) Information from Federal, State, and local
clandestine laboratory seizures and related investiga-
tions identifying the source, type, or brand of drug
products being utilized and how they were obtained
for the illicit production of methamphetamine and
amphetamine.
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(2) Information submitted voluntarily from the
pharmaceutical and retail industries involved in the
manufacture, distribution, and sale of drug products
containing ephedrine, pseudoephedrine, and phenyl-
propanolamine, including information on changes in
the pattern, volume, or both, of sales of ordinary over-
the-counter pseudoephedrine and phenylpropanola-
mine products.
(b) REPORT.—
(1) REQUIREMENT.—Not later than April 1,
2001, the Attorney General shall submit to Congress
a report on the study conducted under subsection (a).
(2) ELEMENTS.—The report shall include—
(A) the findings of the Attorney General as
a result of the study; and
(B) such recommendations on the need to
establish additional measures to prevent diver-
sion 
of 
ordinary 
over-the-counter
pseudoephedrine and phenylpropanolamine (such
as a threshold on ordinary over-the-counter
pseudoephedrine and phenylpropanolamine prod-
ucts) as the Attorney General considers appro-
priate.
(3) MATTERS
CONSIDERED.—In preparing the
report, the Attorney General shall consider the com-
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ments and recommendations of State and local law
enforcement and regulatory officials and of represent-
atives of the industry described in subsection (a)(2).
Subtitle B—Controlled Substances
Generally
CHAPTER 1—CRIMINAL MATTERS
SEC. 1751. ENHANCED PUNISHMENT FOR TRAFFICKING IN
LIST I CHEMICALS.
(a) AMENDMENTS TO FEDERAL SENTENCING GUIDE-
LINES.—Pursuant to its authority under section 994(p) of
title 28, United States, the United States Sentencing Com-
mission shall amend the Federal sentencing guidelines in
accordance with this section with respect to any violation
of paragraph (1) or (2) of section 401(d) of the Controlled
Substances Act (21 U.S.C. 841(d)) involving a list I chem-
ical and any violation of paragraph (1) or (3) of section
1010(d) of the Controlled Substance Import and Export Act
(21 U.S.C. 960(d)) involving a list I chemical.
(b) 
EPHEDRINE, 
PHENYLPROPANOLAMINE, 
AND
PSEUDOEPHEDRINE.—
(1) IN GENERAL.—In carrying this section, the
United States Sentencing Commission shall, with re-
spect to each offense described in subsection (a) in-
volving 
ephedrine, 
phenylpropanolamine, 
or
pseudoephedrine (including their salts, optical iso-
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mers, and salts of optical isomers), review and amend
its guidelines to provide for increased penalties such
that those penalties corresponded to the quantity of
controlled substance that could reasonably have been
manufactured using the quantity of ephedrine, phen-
ylpropanolamine, or pseudoephedrine possessed or
distributed.
(2) CONVERSION RATIOS.—For the purposes of
the amendments made by this subsection, the quantity
of controlled substance that could reasonably have
been manufactured shall be determined by using a
table of manufacturing conversion ratios for ephed-
rine, phenylpropanolamine, and pseudoephedrine,
which table shall be established by the Sentencing
Commission based on scientific, law enforcement, and
other data the Sentencing Commission considers ap-
propriate.
(c) OTHER LIST I CHEMICALS.—In carrying this sec-
tion, the United States Sentencing Commission shall, with
respect to each offense described in subsection (a) involving
any list I chemical other than ephedrine, phenylpropanola-
mine, or pseudoephedrine, review and amend its guidelines
to provide for increased penalties such that those penalties
reflect the dangerous nature of such offenses, the need for
aggressive law enforcement action to fight such offenses, and
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the extreme dangers associated with unlawful activity in-
volving methamphetamine and amphetamine, including—
(1) the rapidly growing incidence of controlled
substance manufacturing;
(2) the extreme danger inherent in manufac-
turing controlled substances;
(3) the threat to public safety posed by manufac-
turing controlled substances; and
(4) the recent increase in the importation, pos-
session, and distribution of list I chemicals for the
purpose of manufacturing controlled substances.
(d) EMERGENCY AUTHORITY TO SENTENCING COMMIS-
SION.—The United States Sentencing Commission shall
promulgate amendments pursuant to this section as soon
as practicable after the date of the enactment of this Act
in accordance with the procedure set forth in section 21(a)
of the Sentencing Act of 1987 (Public Law 100–182), as
though the authority under that Act had not expired.
SEC. 1752. MAIL ORDER REQUIREMENTS.
Section 310(b)(3) of the Controlled Substances Act (21
U.S.C. 830(b)(3)) is amended—
(1) by redesignating subparagraphs (A) and (B)
as subparagraphs (B) and (C), respectively;
(2) by inserting before subparagraph (B), as so
redesignated, the following new subparagraph (A):
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‘‘(A) As used in this paragraph:
‘‘(i) The term ‘drug product’ means an
active ingredient in dosage form that has
been approved or otherwise may be lawfully
marketed under the Food, Drug, and Cos-
metic Act for distribution in the United
States.
‘‘(ii) The term ‘valid prescription’
means a prescription which is issued for a
legitimate medical purpose by an indi-
vidual practitioner licensed by law to ad-
minister and prescribe the drugs concerned
and acting in the usual course of the practi-
tioner’s professional practice.’’;
(3) in subparagraph (B), as so redesignated, by
inserting ‘‘or who engages in an export transaction’’
after ‘‘nonregulated person’’; and
(4) adding at the end the following:
‘‘(D) Except as provided in subparagraph
(E), the following distributions to a nonregulated
person, and the following export transactions,
shall not be subject to the reporting requirement
in subparagraph (B):
‘‘(i) Distributions of sample packages
of drug products when such packages con-
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tain not more than 2 solid dosage units or
the equivalent of 2 dosage units in liquid
form, not to exceed 10 milliliters of liquid
per package, and not more than one pack-
age is distributed to an individual or resi-
dential address in any 30-day period.
‘‘(ii) Distributions of drug products by
retail distributors that may not include
face-to-face transactions to the extent that
such distributions are consistent with the
activities authorized for a retail distributor
as specified in section 102(46).
‘‘(iii) Distributions of drug products to
a resident of a long term care facility (as
that term is defined in regulations pre-
scribed by the Attorney General) or dis-
tributions of drug products to a long term
care facility for dispensing to or for use by
a resident of that facility.
‘‘(iv) Distributions of drug products
pursuant to a valid prescription.
‘‘(v) Exports which have been reported
to the Attorney General pursuant to section
1004 or 1018 or which are subject to a
waiver granted under section 1018(e)(2).
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‘‘(vi) Any quantity, method, or type of
distribution or any quantity, method, or
type of distribution of a specific listed
chemical (including specific formulations or
drug products) or of a group of listed
chemicals (including specific formulations
or drug products) which the Attorney Gen-
eral has excluded by regulation from such
reporting requirement on the basis that such
reporting is not necessary for the enforce-
ment of this title or title III.
‘‘(E) The Attorney General may revoke any
or all of the exemptions listed in subparagraph
(D) for an individual regulated person if he
finds that drug products distributed by the regu-
lated person are being used in violation of this
title or title III. The regulated person shall be
notified of the revocation, which will be effective
upon receipt by the person of such notice, as pro-
vided in section 1018(c)(1), and shall have the
right to an expedited hearing as provided in sec-
tion 1018(c)(2).’’.
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SEC. 1753. INCREASED PENALTIES FOR DISTRIBUTING
DRUGS TO MINORS.
Section 418 of the Controlled Substances Act (21
U.S.C. 859) is amended—
(1) in subsection (a), by striking ‘‘one year’’ and
inserting ‘‘3 years’’; and
(2) in subsection (b), by striking ‘‘one year’’ and
inserting ‘‘5 years’’.
SEC. 1754. INCREASED PENALTY FOR DRUG TRAFFICKING
IN OR NEAR A SCHOOL OR OTHER PRO-
TECTED LOCATION.
Section 419 of the Controlled Substances Act (21
U.S.C. 860) is amended—
(1) in subsection (a), by striking ‘‘one year’’ and
inserting ‘‘3 years’’; and
(2) in subsection (b), by striking ‘‘three years’’
each place that term appears and inserting ‘‘5 years’’.
SEC. 1755. ADVERTISEMENTS FOR DRUG PARAPHERNALIA
AND SCHEDULE I CONTROLLED SUBSTANCES.
(a) DRUG PARAPHERNALIA.—Subsection (a)(1) of sec-
tion 422 of the Controlled Substances Act (21 U.S.C. 863)
is amended by inserting ‘‘, directly or indirectly advertise
for sale,’’ after ‘‘sell’’.
(b) DIRECTLY OR INDIRECTLY ADVERTISE FOR SALE
DEFINED.—Such section 422 is further amended by adding
at the end the following new subsection:
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‘‘(g) In this section, the term ‘directly or indirectly ad-
vertise for sale’ means the use of any communication facil-
ity (as that term is defined in section 403(b)) to post, pub-
licize, transmit, publish, link to, broadcast, or otherwise ad-
vertise any matter (including a telephone number or elec-
tronic or mail address) with the intent to facilitate or pro-
mote a transaction in.’’.
(c) SCHEDULE I CONTROLLED SUBSTANCES.—Section
403(c) of such Act (21 U.S.C. 843(c)) is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(c)’’; and
(2) in paragraph (1), as so designated—
(A) in the first sentence, by inserting before
the period the following: ‘‘, or to directly or indi-
rectly advertise for sale (as that term is defined
in section 422(g)) any Schedule I controlled sub-
stance’’; and
(B) in the second sentence, by striking
‘‘term ‘advertisement’ ’’ and inserting ‘‘term
‘written advertisement’ ’’.
SEC. 1756. THEFT AND TRANSPORTATION OF ANHYDROUS
AMMONIA FOR PURPOSES OF ILLICIT PRO-
DUCTION OF CONTROLLED SUBSTANCES.
(a) IN GENERAL.—Part D of the Controlled Substances
Act (21 U.S.C. 841 et seq.) is amended by adding at the
end the following:
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‘‘ANHYDROUS AMMONIA
‘‘SEC. 423. (a) It is unlawful for any person—
‘‘(1) to steal anhydrous ammonia, or
‘‘(2) to transport stolen anhydrous ammonia
across State lines,
knowing, intending, or having reasonable cause to believe
that such anhydrous ammonia will be used to manufacture
a controlled substance in violation of this part.
‘‘(b) Any person who violates subsection (a) shall be
imprisoned or fined, or both, in accordance with section
403(d) as if such violation were a violation of a provision
of section 403.’’.
(b) CLERICAL AMENDMENT.—The table of contents for
that Act is amended by inserting after the item relating
to section 421 the following new items:
‘‘Sec. 422. Drug paraphernalia.
‘‘Sec. 423. Anhydrous ammonia.’’.
(c) ASSISTANCE FOR CERTAIN RESEARCH.—
(1) AGREEMENT.—The Administrator of the
Drug Enforcement Administration shall seek to enter
into an agreement with Iowa State University in
order to permit the University to continue and ex-
pand its current research into the development of
inert agents that, when added to anhydrous ammo-
nia, eliminate the usefulness of anhydrous ammonia
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as an ingredient in the production of methamphet-
amine.
(2) REIMBURSABLE PROVISION OF FUNDS.—The
agreement under paragraph (1) may provide for the
provision to Iowa State University, on a reimbursable
basis, of $500,000 for purposes the activities specified
in that paragraph.
(3) AUTHORIZATION
OF
APPROPRIATIONS.—
There is hereby authorized to be appropriated for the
Drug Enforcement Administration for fiscal year
2000, $500,000 for purposes of carrying out the agree-
ment under this subsection.
SEC. 1757. CRIMINAL PROHIBITION ON DISTRIBUTION OF
CERTAIN INFORMATION RELATING TO THE
MANUFACTURE 
OF 
CONTROLLED 
SUB-
STANCES.
(a) IN GENERAL.—Part I of title 18, United States
Code, is amended by inserting after chapter 21 the following
new chapter:
‘‘CHAPTER 22—CONTROLLED SUBSTANCES
‘‘Sec.
‘‘421. Distribution of information relating to manufacture of controlled substances.
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‘‘§ 421. Distribution of information relating to manu-
facture of controlled substances
‘‘(a) PROHIBITION ON DISTRIBUTION OF INFORMATION
RELATING
TO
MANUFACTURE
OF
CONTROLLED
SUB-
STANCES.—
‘‘(1) CONTROLLED
SUBSTANCE
DEFINED.—In
this subsection, the term ‘controlled substance’ has the
meaning given that term in section 102(6) of the Con-
trolled Substances Act (21 U.S.C. 802(6)).
‘‘(2) PROHIBITION.—It shall be unlawful for any
person—
‘‘(A) to teach or demonstrate the manufac-
ture of a controlled substance, or to distribute by
any means information pertaining to, in whole
or in part, the manufacture of a controlled sub-
stance, with the intent that the teaching, dem-
onstration, or information be used for, or in fur-
therance of, an activity that constitutes a Fed-
eral crime; or
‘‘(B) to teach or demonstrate to any person
the manufacture of a controlled substance, or to
distribute to any person, by any means, infor-
mation pertaining to, in whole or in part, the
manufacture of a controlled substance, knowing
that such person intends to use the teaching,
demonstration, or information for, or in further-
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ance of, an activity that constitutes a Federal
crime.
‘‘(b) PENALTY.—Any person who violates subsection
(a) shall be fined under this title, imprisoned not more than
10 years, or both.’’.
(b) CLERICAL AMENDMENT.—The table of chapters at
the beginning of part I of title 18, United States Code, is
amended by inserting after the item relating to chapter 21
the following new item:
‘‘22. Controlled Substances .................................................................
421’’.
CHAPTER 2—OTHER MATTERS
SEC. 1761. WAIVER AUTHORITY FOR PHYSICIANS WHO DIS-
PENSE OR PRESCRIBE CERTAIN NARCOTIC
DRUGS FOR MAINTENANCE TREATMENT OR
DETOXIFICATION TREATMENT.
(a) REQUIREMENTS.—Section 303(g) of the Controlled
Substances Act (21 U.S.C. 823(g)) is amended—
(1) in paragraph (2), by striking ‘‘(A) security’’
and inserting ‘‘(i) security’’, and by striking ‘‘(B) the
maintenance’’ and inserting ‘‘(ii) the maintenance’’;
(2) by redesignating paragraphs (1) through (3)
as subparagraphs (A) through (C), respectively;
(3) by inserting ‘‘(1)’’ after ‘‘(g)’’;
(4) by striking ‘‘Practitioners who dispense’’ and
inserting ‘‘Except as provided in paragraph (2),
practitioners who dispense and prescribe’’; and
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(5) by adding at the end the following:
‘‘(2)(A) Subject to subparagraphs (D), the require-
ments of paragraph (1) are waived in the case of the dis-
pensing or prescribing, by a physician, of narcotic drugs
in schedule III, IV, or V, or combinations of such drugs,
if the physician meets the conditions specified in subpara-
graph (B) and the narcotic drugs or combinations of such
drugs meet the conditions specified in subparagraph (C).
‘‘(B)(i) For purposes of subparagraph (A), the condi-
tions specified in this subparagraph with respect to a physi-
cian are that, before dispensing or prescribing narcotic
drugs in schedule III, IV, or V, or combinations of such
drugs, to patients for maintenance or detoxification treat-
ment, the physician submit to the Secretary and the Attor-
ney General a notification of the intent of the physician
to begin dispensing or prescribing the drugs or combina-
tions for such purpose, and that the notification to the Sec-
retary also contain the following certifications by the physi-
cian:
‘‘(I) The physician—
‘‘(aa) is a physician licensed under State
law; and
‘‘(bb) has training or experience and the
ability to treat and manage opiate-dependent
patients.
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‘‘(II) With respect to patients to whom the physi-
cian will provide such drugs or combinations of
drugs, the physician has the capacity to refer the pa-
tients for appropriate counseling and other appro-
priate ancillary services.
‘‘(III) In any case in which the physician is not
in a group practice, the total number of such patients
of the physician at any one time will not exceed the
applicable number. For purposes of this subclause, the
applicable number is 20, except that the Secretary
may by regulation change such total number.
‘‘(IV) In any case in which the physician is in
a group practice, the total number of such patients of
the group practice at any one time will not exceed the
applicable number. For purposes of this subclause, the
applicable number is 20, except that the Secretary
may by regulation change such total number, and the
Secretary for such purposes may by regulation estab-
lish different categories on the basis of the number of
physicians in a group practice and establish for the
various categories different numerical limitations on
the number of such patients that the group practice
may have.
‘‘(ii)(I) The Secretary may, in consultation with the
Administrator of the Drug Enforcement Administration,
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the Administrator of the Substance Abuse and Mental
Health Services Administration, the Director of the Center
for Substance Abuse Treatment, the Director of the National
Institute on Drug Abuse, and the Commissioner of Food
and Drugs, issue regulations through notice and comment
rulemaking or practice guidelines to implement this para-
graph. The regulations or practice guidelines shall address
the following:
‘‘(aa) Approval of additional credentialing bod-
ies and the responsibilities of credentialing bodies.
‘‘(bb) Additional exemptions from the require-
ments of this paragraph and any regulations under
this paragraph.
‘‘(II) Nothing in the regulations or practice guidelines
under this clause may authorize any Federal official or em-
ployee to exercise supervision or control over the practice
of medicine or the manner in which medical services are
provided.
‘‘(III)(aa) The Secretary shall issue a Treatment Im-
provement Protocol containing best practice guidelines for
the treatment and maintenance of opiate-dependent pa-
tients. The Secretary shall develop the protocol in consulta-
tion with the Director of the National Institute on Drug
Abuse, the Director of the Center for Substance Abuse Treat-
ment, the Administrator of the Drug Enforcement Adminis-
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tration, the Commissioner of Food and Drugs, the Adminis-
trator of the Substance Abuse and Mental Health Services
Administration, and other substance abuse disorder profes-
sionals. The protocol shall be guided by science.
‘‘(bb) The protocol shall be issued not later than 120
days after the date of the enactment of the Methamphet-
amine Anti-Proliferation Act of 2000.
‘‘(IV) For purposes of the regulations or practice
guidelines under subclause (I), a physician shall have train-
ing or experience under clause (i)(I)(bb) if the physician
meets one or more of the following conditions:
‘‘(aa) The physician is certified in addiction
treatment by the American Society of Addiction Med-
icine, the American Board of Medical Specialties, the
American Osteopathic Academy of Addiction Medi-
cine, or any other certified body accredited by the
Secretary.
‘‘(bb) The physician has been a clinical investi-
gator in a clinical trial conducted for purposes of se-
curing approval under section 505 of the Federal
Food, Drug, and Cosmetic Act (21 U.S.C. 355) or sec-
tion 351 of the Public Health Service Act (42 U.S.C.
262) of a narcotic drug in schedule III, IV, or V for
the treatment of addiction, if such approval was
granted.
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‘‘(cc) The physician has completed training
(through classroom situations, seminars, professional
society meetings, electronic communications, or other-
wise) provided by the American Society of Addiction
Medicine, the American Academy of Addiction Psy-
chiatry, the American Osteopathic Academy of Addic-
tion Medicine, the American Medical Association, the
American Osteopathic Association, the American Psy-
chiatric Association, or any other organization that
the Secretary determines appropriate for purposes of
this item. The curricula may include training in pa-
tient need for counseling regarding HIV, Hepatitis C,
and other infectious diseases, substance abuse coun-
seling, random drug testing, medical evaluation, an-
nual assessment, prenatal care, diagnosis of addic-
tion, rehabilitation services, confidentiality, and other
appropriate topics.
‘‘(dd) The physician has training or experience
in the treatment and management of opiate-depend-
ent, which training or experience shall meet such cri-
teria as the Secretary may prescribe. Any such cri-
teria shall be effective for a period of three years after
the effective date of such criteria, but the Secretary
may extend the effective period of such criteria by ad-
ditional periods of three years for each extension if
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the Secretary determines that such extension is appro-
priate for purposes of this item. Any such extension
shall go into effect only if the Secretary publishes a
notice of such extension in the Federal Register dur-
ing the 30-day period ending on the date of the end
of the three-year effective period of such criteria to
which such extension will apply.
‘‘(ee) The physician is certified in addiction
treatment by a State medical licensing board, or an
entity accredited by such board, unless the Secretary
determines (after an opportunity for a hearing) that
the training provided by such board or entity was in-
adequate for the treatment and management of opi-
ate-dependent patients.
‘‘(C) For purposes of subparagraph (A), the conditions
specified in this subparagraph with respect to narcotic
drugs in schedule III, IV, or V, or combinations of such
drugs, are as follows:
‘‘(i) The drugs or combinations of drugs have,
under the Federal Food, Drug and Cosmetic Act or
section 351 of the Public Health Service Act, been ap-
proved for use in maintenance or detoxification treat-
ment.
‘‘(ii) The drugs or combinations of drugs have
not been the subject of an adverse determination. For
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purposes of this clause, an adverse determination is
a determination published in the Federal Register
and made by the Secretary, after consultation with
the Attorney General, that experience since the ap-
proval of the drug or combinations of drugs has
shown that the use of the drugs or combinations of
drugs for maintenance or detoxification treatment re-
quires additional standards respecting the qualifica-
tions of physicians to provide such treatment, or re-
quires standards respecting the quantities of the drugs
that may be provided for unsupervised use.
‘‘(D)(i) A waiver under subparagraph (A) with respect
to a physician is not in effect unless (in addition to condi-
tions under subparagraphs (B) and (C)) the following con-
ditions are met:
‘‘(I) The notification under subparagraph (B) is
in writing and states the name of the physician.
‘‘(II) The notification identifies the registration
issued for the physician pursuant to subsection (f).
‘‘(III) If the physician is a member of a group
practice, the notification states the names of the other
physicians in the practice and identifies the registra-
tions issued for the other physicians pursuant to sub-
section (f).
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‘‘(IV) A period of 45 days has elapsed after the
date on which the notification was submitted, and
during such period the physician does not receive
from the Secretary a written notice that one or more
of the conditions specified in subparagraph (B), sub-
paragraph (C), or this subparagraph, have not been
met.
‘‘(ii) The Secretary shall provide to the Attorney Gen-
eral such information contained in notifications under sub-
paragraph (B) as the Attorney General may request.
‘‘(E) If in violation of subparagraph (A) a physician
dispenses or prescribes narcotic drugs in schedule III, IV,
or V, or combinations of such drugs, for maintenance treat-
ment or detoxification treatment, the Attorney General
may, for purposes of section 304(a)(4), consider the physi-
cian to have committed an act that renders the registration
of the physician pursuant to subsection (f) to be inconsistent
with the public interest.
‘‘(F)(i) Upon determining that a physician meets the
conditions specified in subparagraph (B), the Secretary
shall notify the physician and the Attorney General.
‘‘(ii) Upon receiving notice with respect to a physician
under clause (i), the Attorney General shall assign the phy-
sician an identification number under this paragraph for
inclusion with the physician’s current registration to pre-
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scribe narcotics. An identification number assigned a phy-
sician under this clause shall be appropriate to preserve the
confidentiality of a patient prescribed narcotic drugs cov-
ered by this paragraph by the physician.
‘‘(iii) If the Secretary fails to make a determination
described in clause (i) by the end of the 45-day period begin-
ning on the date of the receipt by the Secretary of a notifica-
tion from a physician under subparagraph (B), the Attor-
ney General shall assign the physician an identification
number described in clause (ii) at the end of such period.
‘‘(G) In this paragraph:
‘‘(i) The term ‘group practice’ has the meaning
given such term in section 1877(h)(4) of the Social
Security Act.
‘‘(ii) The term ‘physician’ has the meaning given
such term in section 1861(r) of the Social Security
Act.
‘‘(H)(i) This paragraph takes effect on the date of the
enactment of the Methamphetamine Anti-Proliferation Act
of 2000, and remains in effect thereafter except as provided
in clause (iii) (relating to a decision by the Secretary or
the Attorney General that this paragraph should not re-
main in effect).
‘‘(ii) For the purposes relating to clause (iii), the Sec-
retary and the Attorney General shall, during the 3-year
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period beginning on the date of the enactment of the Meth-
amphetamine Anti-Proliferation Act of 2000, make deter-
minations in accordance with the following:
‘‘(I)(aa) The Secretary shall—
‘‘(aaa) make a determination of whether
treatments provided under waivers under sub-
paragraph (A) have been effective forms of main-
tenance treatment and detoxification treatment
in clinical settings;
‘‘(bbb) make a determination regarding
whether such waivers have significantly in-
creased (relative to the beginning of such period)
the availability of maintenance treatment and
detoxification treatment; and
‘‘(ccc) make a determination regarding
whether such waivers have adverse consequences
for the public health.
‘‘(bb) In making determinations under this sub-
clause, the Secretary—
‘‘(aaa) may collect data from the practi-
tioners for whom waivers under subparagraph
(A) are in effect;
‘‘(bbb) shall issue appropriate guidelines or
regulations (in accordance with procedures for
substantive rules under section 553 of title 5,
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United States Code) specifying the scope of the
data that will be required to be provided under
this subclause and the means through which the
data will be collected; and
‘‘(ccc) shall, with respect to collecting such
data, comply with applicable provisions of chap-
ter 6 of title 5, United States Code (relating to
a regulatory flexibility analysis), and of chapter
8 of such title (relating to congressional review
of agency rulemaking).
‘‘(II) The Attorney General shall—
‘‘(aa) make a determination of the extent to
which there have been violations of the numerical
limitations established under subparagraph (B)
for the number of individuals to whom a practi-
tioner may provide treatment; and
‘‘(bb) make a determination regarding
whether waivers under subparagraph (A) have
increased (relative to the beginning of such pe-
riod) the extent to which narcotic drugs in sched-
ule III, IV, or V, or combinations of such drugs,
are being dispensed or prescribed, or possessed,
in violation of this Act.
‘‘(iii) If, before the expiration of the period specified
in clause (ii), the Secretary or the Attorney General pub-
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lishes in the Federal Register a decision, made on the basis
of determinations under such clause, that this paragraph
should not remain in effect, this paragraph ceases to be in
effect 60 days after the date on which the decision is so
published. The Secretary shall, in making any such deci-
sion, consult with the Attorney General, and shall, in pub-
lishing the decision in the Federal Register, include any
comments received from the Attorney General for inclusion
in the publication. The Attorney General shall, in making
any such decision, consult with the Secretary, and shall,
in publishing the decision in the Federal Register, include
any comments received from the Secretary for inclusion in
the publication.
‘‘(I) During the 3-year period beginning on the date
of the enactment of the Methamphetamine Anti-Prolifera-
tion Act of 2000, a State may not preclude a practitioner
from dispensing or prescribing narcotic drugs in schedule
III, IV, or V, or combinations of such drugs, to patients
for maintenance or detoxification treatment in accordance
with this paragraph, or the other amendments made by sec-
tion 22 of that Act, unless, before the expiration of that 3-
year period, the State enacts a law prohibiting a practi-
tioner from dispensing or prescribing such drugs or com-
bination of drugs.’’.
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(b) CONFORMING AMENDMENTS.—Section 304 of the
Controlled Substances Act (21 U.S.C. 824) is amended—
(1) in subsection (a), in the matter following
paragraph (5), by striking ‘‘section 303(g)’’ each
place the term appears and inserting ‘‘section
303(g)(1)’’; and
(2) in subsection (d), by striking ‘‘section
303(g)’’ and inserting ‘‘section 303(g)(1)’’.
(c) AUTHORIZATION OF APPROPRIATIONS.—There is
hereby authorized to be appropriated for purposes of activi-
ties under section 303(g)(2) of the Controlled Substances
Act, as added by subsection (a), amounts as follows:
(1) For fiscal year 2000, $3,000,000.
(2) For each fiscal year after fiscal year 2000,
such sums as may be necessary for such fiscal year.
Subtitle C—Cocaine Powder
SEC. 1771. SHORT TITLE.
This subtitle may be cited as the ‘‘Powder Cocaine
Sentencing Act of 2000’’.
SEC. 1772. SENTENCING FOR VIOLATIONS INVOLVING CO-
CAINE POWDER.
(a) AMENDMENT
OF
CONTROLLED
SUBSTANCES
ACT.—
(1) 
LARGE
QUANTITIES.—Section
401(b)(1)(A)(ii) of the Controlled Substances Act (21
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U.S.C. 841(b)(1)(A)(ii)) is amended by striking ‘‘5
kilograms’’ and inserting ‘‘500 grams’’.
(2) 
SMALL
QUANTITIES.—Section
401(b)(1)(B)(ii) of the Controlled Substances Act (21
U.S.C. 841(b)(1)(B)(ii)) is amended by striking ‘‘500
grams’’ and inserting ‘‘50 grams’’.
(b) AMENDMENT OF CONTROLLED SUBSTANCES IM-
PORT AND EXPORT ACT.—
(1) LARGE QUANTITIES.—Section 1010(b)(1)(B)
of the Controlled Substances Import and Export Act
(21 U.S.C. 960(b)(1)(B)) is amended by striking ‘‘5
kilograms’’ and inserting ‘‘500 grams’’.
(2) SMALL QUANTITIES.—Section 1010(b)(2)(B)
of the Controlled Substances Import and Export Act
(21 U.S.C. 960(b)(2)(B)) is amended by striking ‘‘500
grams’’ and inserting ‘‘50 grams’’.
(c) AMENDMENT OF SENTENCING GUIDELINES.—Pur-
suant to section 994 of title 28, United States Code, the
United States Sentencing Commission shall amend the Fed-
eral sentencing guidelines to reflect the amendments made
by this section.
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Subtitle D—Education Matters
SEC. 1781. SAFE SCHOOLS.
(a) AMENDMENTS.—Part F of title XIV of the Elemen-
tary and Secondary Education Act of 1965 (20 U.S.C. 8921
et seq.) is amended as follows:
(1) SHORT TITLE.—Section 14601(a) is amended
by replacing ‘‘Gun-Free’’ with ‘‘Safe’’, and ‘‘1994’’
with ‘‘1999’’.
(2) REQUIREMENTS.—Section 14601(b)(1) is
amended by inserting after ‘‘determined’’ the fol-
lowing: ‘‘to be in possession of felonious quantities of
an illegal drug, on school property under the jurisdic-
tion of, or in a vehicle operated by an employee or
agent of, a local educational agency in that State,
or’’.
(3) 
DEFINITIONS.—Section 
14601(b)(4) 
is
amended by replacing ‘‘Definition’’ with ‘‘Defini-
tions’’ in the catchline, by replacing ‘‘section’’ in the
matter under the catchline with ‘‘part’’, by redesig-
nating the matter under the catchline after the
comma as subparagraph (A), by replacing the period
with a semicolon, and by adding new subparagraphs
(B), (C), and (D) as follows:
‘‘(B) the term ‘illegal drug’ means a con-
trolled substance, as defined in section 102(6) of
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the Controlled Substances Act (21 U.S.C.
802(6)), the possession of which is unlawful
under the Act (21 U.S.C. 801 et seq.) or under
the Controlled Substances Import and Export
Act (21 U.S.C. 951 et seq.), but does not mean
a controlled substance used pursuant to a valid
prescription or as authorized by law; and
‘‘(C) the term ‘illegal drug paraphernalia’
means drug paraphernalia, as defined in section
422(d) of the Controlled Substances Act (21
U.S.C. 863(d)), except that the first sentence of
that section shall be applied by inserting ‘or
under the Controlled Substances Import and Ex-
port Act (21 U.S.C. 951 et seq.)’, before the pe-
riod.
‘‘(D) the term ‘felonious quantities of an il-
legal drug’ means any quantity of an illegal
drug—
‘‘(i) possession of which quantity
would, under Federal, State, or local law,
either constitute a felony or indicate an in-
tent to distribute; or
‘‘(ii) that is possessed with an intent to
distribute.’’.
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(4) 
REPORT
TO
STATE.—Section
14601(d)(2)(C) is amended by inserting ‘‘illegal
drugs or’’ before ‘‘weapons’’.
(5) REPEALER.—Section 14601 is amended
by striking subsection (f).
(6) POLICY REGARDING CRIMINAL JUSTICE
SYSTEM
REFERRAL.—Section 
14602(a) 
is
amended by replacing ‘‘served by’’ with ‘‘under
the jurisdiction of’’, and by inserting after
‘‘who’’ the following: ‘‘is in possession of an ille-
gal drug, or illegal drug paraphernalia, on
school property under the jurisdiction of, or in
a vehicle operated by an employee or agent of,
such agency, or who’’.
(7) DATA
AND
POLICY
DISSEMINATION
UNDER IDEA.—Section 14603 is amended by in-
serting ‘‘current’’ before ‘‘policy’’, by striking ‘‘in
effect on October 20, 1994’’, by striking all the
matter after ‘‘schools’’ and inserting a period
thereafter, and by inserting before ‘‘engaging’’
the following: ‘‘possessing illegal drugs, or illegal
drug paraphernalia, on school property, or in
vehicles operated by employees or agents of,
schools or local educational agencies, or’’.
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(b) COMPLIANCE DATE; REPORTING.—(1) States shall
have 2 years from the date of the enactment of this Act to
comply with the requirements established in the amend-
ments made by subsection (a).
(2) Not later than 3 years after the date of the enact-
ment of this Act, the Secretary of Education shall submit
to Congress a report on any State that is not in compliance
with the requirements of this section.
(3) Not later than 2 years after the date of the enact-
ment of this Act, the Secretary of Education shall submit
to Congress a report analyzing the strengths and weaknesses
of approaches regarding the disciplining of children with
disabilities.
SEC. 1782. STUDENT SAFETY AND FAMILY SCHOOL CHOICE.
Subpart 1 of part A of title I of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 6311 et seq.)
is amended by inserting after section 1115A of such Act
(20 U.S.C. 6316) the following:
‘‘SEC. 1115B. STUDENT SAFETY AND FAMILY SCHOOL
CHOICE.
‘‘(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, if a student is eligible to be served under section
1115(b), or attends a school eligible for a schoolwide pro-
gram under section 1114, and becomes a victim of a violent
criminal offense, including drug-related violence, while in
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or on the grounds of a public elementary school or sec-
ondary school that the student attends and that receives as-
sistance under this part, then the local educational agency
may use funds provided under this part or under any other
Federal education program to pay the supplementary costs
for such student to attend another school. The agency may
use the funds to pay for the supplementary costs of such
student to attend any other public or private elementary
school or secondary school, including a religious school, in
the same State as the school where the criminal offense oc-
curred, that is selected by the student’s parent. The State
educational agency shall determine what actions constitute
a violent criminal offense for purposes of this section.
‘‘(b) SUPPLEMENTARY COSTS.—The supplementary
costs referred to in subsection (a) shall not exceed—
‘‘(1) in the case of a student for whom funds
under this section are used to enable the student to at-
tend a public elementary school or secondary school
served by a local educational agency that also serves
the school where the violent criminal offense occurred,
the costs of supplementary educational services and
activities described in section 1114(b) or 1115(c) that
are provided to the student;
‘‘(2) in the case of a student for whom funds
under this section are used to enable the student to at-
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tend a public elementary school or secondary school
served by a local educational agency that does not
serve the school where the violent criminal offense oc-
curred but is located in the same State—
‘‘(A) the costs of supplementary educational
services and activities described in section
1114(b) or 1115(c) that are provided to the stu-
dent; and
‘‘(B) the reasonable costs of transportation
for the student to attend the school selected by the
student’s parent; and
‘‘(3) in the case of a student for whom funds
under this section are used to enable the student to at-
tend a private elementary school or secondary school,
including a religious school, the costs of tuition, re-
quired fees, and the reasonable costs of such transpor-
tation.
‘‘(c) CONSTRUCTION.—Nothing in this Act or any
other Federal law shall be construed to prevent a parent
assisted under this section from selecting the public or pri-
vate, including religious, elementary school or secondary
school that a child of the parent will attend within the
State.
‘‘(d) CONSIDERATION OF ASSISTANCE.—Subject to sub-
section (h), assistance made available under this section
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that is used to pay the costs for a student to attend a private
or religious school shall not be considered to be Federal aid
to the school, and the Federal Government shall have no
authority to influence or regulate the operations of a private
or religious school as a result of assistance received under
this section.
‘‘(e) CONTINUING ELIGIBILITY.—A student assisted
under this section shall remain eligible to continue receiving
assistance under this section for at least 3 academic years
without regard to whether the student is eligible for assist-
ance under section 1114 or 1115(b).
‘‘(f) TUITION CHARGES.—Assistance under this section
may not be used to pay tuition or required fees at a private
elementary school or secondary school in an amount that
is greater than the tuition and required fees paid by stu-
dents not assisted under this section at such school.
‘‘(g) SPECIAL RULE.—Any school receiving assistance
provided under this section shall comply with title VI of
the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.) and
not discriminate on the basis race, color, or national origin.
‘‘(h) ASSISTANCE; TAXES AND OTHER FEDERAL PRO-
GRAMS.—
‘‘(1) ASSISTANCE TO FAMILIES, NOT SCHOOLS.—
Assistance provided under this section shall be consid-
ered to be aid to families, not schools. Use of such as-
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sistance at a school shall not be construed to be Fed-
eral financial aid or assistance to that school.
‘‘(2) TAXES
AND
DETERMINATIONS
OF
ELIGI-
BILITY FOR OTHER FEDERAL PROGRAMS.—Assistance
provided under this section to a student shall not be
considered to be income of the student or the parent
of such student for Federal, State, or local tax pur-
poses or for determining eligibility for any other Fed-
eral program.
‘‘(i) PART B OF THE INDIVIDUALS WITH DISABILITIES
EDUCATION ACT.—Nothing in this section shall be con-
strued to affect the requirements of part B of the Individ-
uals with Disabilities Education Act (20 U.S.C. 1411 et
seq.).
‘‘(j) MAXIMUM AMOUNT.—Notwithstanding any other
provision of this section, the amount of assistance provided
under this part for a student shall not exceed the per pupil
expenditure for elementary or secondary education, as ap-
propriate, by the local educational agency that serves the
school where the criminal offense occurred for the fiscal year
preceding the fiscal year for which the determination is
made.’’.
SEC. 1783. TRANSFER OF REVENUES.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of Federal law, a State, a State educational agency,
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or a local educational agency may transfer any non-Federal
public funds associated with the education of a student who
is a victim of a violent criminal offense while in or on the
grounds of a public elementary school or secondary school
served by a local educational agency to another local edu-
cational agency or to a private elementary school or sec-
ondary school, including a religious school.
(b) DEFINITIONS.—For the purpose of subsection (a),
the terms ‘‘elementary school’’, ‘‘secondary school’’, ‘‘local
educational agency’’, and ‘‘State educational agency’’ have
the meanings given such terms in section 14101 of the Ele-
mentary and Secondary Education Act of 1965 (20 U.S.C.
8801).
Subtitle E—Miscellaneous
SEC. 1791. NOTICE; CLARIFICATION.
(a) NOTICE OF ISSUANCE.—Section 3103a of title 18,
United States Code, is amended by adding at the end the
following new sentence: ‘‘With respect to any issuance under
this section or any other provision of law (including section
3117 and any rule), any notice required, or that may be
required, to be given may be delayed pursuant to the stand-
ards, terms, and conditions set forth in section 2705, unless
otherwise expressly provided by statute.’’.
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(b) CLARIFICATION.—(1) Section 2(e) of Public Law
95–78 (91 Stat. 320) is amended by adding at the end the
following:
‘‘Subdivision (d) of such rule, as in effect on this date, is
amended by inserting ‘tangible’ before ‘property’ each place
it occurs.’’.
(2) The amendment made by paragraph (1) shall take
effect on the date of the enactment of this Act.
SEC. 1792. DOMESTIC TERRORISM ASSESSMENT AND RE-
COVERY.
(a) IN GENERAL.—The Federal Bureau of Investiga-
tion shall prepare a study assessing—
(1) the threat posed by the Fuerzas Armadas de
Liberacion Nacional Puertorriquena (FALN) and Los
Macheteros terrorist organizations to the United
States and its territories as of July 31, 1999; and
(2) what effect the President’s offer of clemency
to 16 FALN and Los Macheteros members on August
11, 1999, and the subsequent release of 11 of those
members, will have on the threat posed by those ter-
rorist organizations to the United States and its ter-
ritories.
(b) ISSUES EXAMINED.—In conducting and preparing
the study under subsection (a), the Federal Bureau of Inves-
tigation shall address—
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(1) the threat posed by the FALN and Los
Macheteros organizations to law enforcement officers,
prosecutors, defense attorneys, witnesses, and judges
involved in the prosecution of members of the FALN
and Los Macheteros, both in the United States and its
territories;
(2) the roles played by each the 16 members of-
fered clemency by the President on August 11, 1999,
in the FALN and Los Macheteros organizations;
(3) the extent to which the FALN and Los
Macheteros organizations are associated with other
known terrorist organizations or countries suspected
of sponsoring terrorism;
(4) the threat posed to the national security in-
terests of the United States by the FALN and Los
Macheteros organizations;
(5) whether the offer of clemency to, or release of,
any of the 16 FALN or Los Macheteros members
would violate, or be inconsistent with, the United
States’ obligations under international treaties and
agreements governing terrorist activity; and
(6) the effect on law enforcement’s ability to solve
open cases and apprehend fugitives resulting from the
offer of clemency to the 16 FALN and Los Macheteros
members, without first requiring each of them to pro-
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vide the government all truthful information and evi-
dence he or she has concerning open investigations
and fugitives associated with the FALN and Los
Macheteros organizations.
(c) REPORT.—Not later than 30 days after the date
of the enactment of this Act, the Federal Bureau of Inves-
tigation shall submit to Congress a report on the study con-
ducted under subsection (a).
SEC. 1793. ANTIDRUG MESSAGES ON FEDERAL GOVERN-
MENT INTERNET WEBSITES.
Not later than 90 days after the date of the enactment
of this Act, the head of each department, agency, and estab-
lishment of the Federal Government shall, in consultation
with the Director of the Office of National Drug Control
Policy, place antidrug messages on appropriate Internet
websites controlled by such department, agency, or establish-
ment which messages shall, where appropriate, contain an
electronic hyperlink to the Internet website, if any, of the
Office.
SEC. 1794. STATE SCHOOLS.
(a) AMENDMENTS.—Part F of title XIV of the Elemen-
tary and Secondary Education Act of 1965 (20 U.S.C. 8921
et seq.) is amended as follows:
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(1) SHORT TITLE.—Section 14601(a) is amended
by replacing ‘‘Gun-Free’’ with ‘‘Safe’’, and ‘‘1994’’
with ‘‘1999’’.
(2) REQUIREMENTS.—Section 14601(b)(1) is
amended by inserting after ‘‘determined’’ the fol-
lowing: ‘‘to be in possession of felonious quantities of
an illegal drug, on school property under the jurisdic-
tion of, or in a vehicle operated by an employee or
agent of, a local educational agency in that State,
or’’.
(3) 
DEFINITIONS.—Section 
14601(b)(4) 
is
amended by replacing ‘‘Definition’’ with ‘‘Defini-
tions’’ in the catchline, by replacing ‘‘section’’ in the
matter under the catchline with ‘‘part’’, by redesig-
nating the matter under the catchline after the
comma as subparagraph (A), by replacing the period
with a semicolon, and by adding new subparagraphs
(B), (C), and (D) as follows:
‘‘(B) The term ‘illegal drug’ means a con-
trolled substance, as defined in section 102(6) of
the Controlled Substances Act (21 U.S.C.
802(6)), the possession of which is unlawful
under the Act (21 U.S.C. 801 et seq.) or under
the Controlled Substances Import and Export
Act (21 U.S.C. 951 et seq.), but does not mean
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a controlled substance used pursuant to a valid
prescription or as authorized by law.
‘‘(C) The term ‘illegal drug paraphernalia’
means drug paraphernalia, as defined in section
422(d) of the Controlled Substances Act (21
U.S.C. 863(d)), except that the first sentence of
that section shall be applied by inserting ‘or
under the Controlled Substances Import and Ex-
port Act (21 U.S.C. 951 et seq.)’, before the pe-
riod.
‘‘(D) The term ‘felonious quantities of an il-
legal drug’ means any quantity of an illegal
drug—
‘‘(i) possession of which quantity
would, under Federal, State, or local law,
either constitute a felony or indicate an in-
tent to distribute; or
‘‘(ii) that is possessed with an intent to
distribute.’’.
(4) REPORT TO STATE.—Section 14601(d)(2)(C)
is amended by inserting ‘‘illegal drugs or’’ before
‘‘weapons’’.
(5) REPEALER.—Section 14601 is amended by
striking subsection (f).
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(6) POLICY REGARDING CRIMINAL JUSTICE SYS-
TEM REFERRAL.—Section 14602(a) is amended by re-
placing ‘‘served by’’ with ‘‘under the jurisdiction of’’,
and by inserting after ‘‘who’’ the following: ‘‘is in
possession of an illegal drug, or illegal drug para-
phernalia, on school property under the jurisdiction
of, or in a vehicle operated by an employee or agent
of, such agency, or who’’.
(7) DATA
AND
POLICY
DISSEMINATION
UNDER
IDEA.—Section 14603 is amended by inserting ‘‘cur-
rent’’ before ‘‘policy’’, by striking ‘‘in effect on Octo-
ber 20, 1994’’, by striking all the matter after
‘‘schools’’ and inserting a period thereafter, and by
inserting before ‘‘engaging’’ the following: ‘‘possessing
illegal drugs, or illegal drug paraphernalia, on school
property, or in vehicles operated by employees or
agents of, schools or local educational agencies, or’’.
(b) COMPLIANCE DATE; REPORTING.—(1) States shall
have 2 years from the date of enactment of this Act to com-
ply with the requirements established in the amendments
made by subsection (a).
(2) Not later than 3 years after the date of enactment
of this Act, the Secretary of Education shall submit to Con-
gress a report on any State that is not in compliance with
the requirements of this part.
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(3) Not later than 2 years after the date of enactment
of this Act, the Secretary of Education shall submit to Con-
gress a report analyzing the strengths and weaknesses of
approaches regarding the disciplining of children with dis-
abilities.
SEC. 1795. STUDENT SAFETY AND FAMILY SCHOOL CHOICE.
Subpart 1 of part A of title I of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 6311 et seq.)
is amended by inserting after section 1115A of such Act
(20 U.S.C. 6316) the following:
‘‘SEC. 1115B. STUDENT SAFETY AND FAMILY SCHOOL
CHOICE.
‘‘(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, if a student is eligible to be served under section
1115(b), or attends a school eligible for a schoolwide pro-
gram under section 1114, and becomes a victim of a violent
criminal offense, including drug-related violence, while in
or on the grounds of a public elementary school or sec-
ondary school that the student attends and that receives as-
sistance under this part, then the local educational agency
may use funds provided under this part or under any other
Federal education program to pay the supplementary costs
for such student to attend another school. The agency may
use the funds to pay for the supplementary costs of such
student to attend any other public or private elementary
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school or secondary school, including a religious school, in
the same State as the school where the criminal offense oc-
curred, that is selected by the student’s parent. The State
educational agency shall determine what actions constitute
a violent criminal offense for purposes of this section.
‘‘(b) SUPPLEMENTARY COSTS.—The supplementary
costs referred to in subsection (a) shall not exceed—
‘‘(1) in the case of a student for whom funds
under this section are used to enable the student to at-
tend a public elementary school or secondary school
served by a local educational agency that also serves
the school where the violent criminal offense occurred,
the costs of supplementary educational services and
activities described in section 1114(b) or 1115(c) that
are provided to the student;
‘‘(2) in the case of a student for whom funds
under this section are used to enable the student to at-
tend a public elementary school or secondary school
served by a local educational agency that does not
serve the school where the violent criminal offense oc-
curred but is located in the same State—
‘‘(A) the costs of supplementary educational
services and activities described in section
1114(b) or 1115(c) that are provided to the stu-
dent; and
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‘‘(B) the reasonable costs of transportation
for the student to attend the school selected by the
student’s parent; and
‘‘(3) in the case of a student for whom funds
under this section are used to enable the student to at-
tend a private elementary school or secondary school,
including a religious school, the costs of tuition, re-
quired fees, and the reasonable costs of such transpor-
tation.
‘‘(c) CONSTRUCTION.—Nothing in this Act or any
other Federal law shall be construed to prevent a parent
assisted under this section from selecting the public or pri-
vate, including religious, elementary school or secondary
school that a child of the parent will attend within the
State.
‘‘(d) CONSIDERATION OF ASSISTANCE.—Subject to sub-
section (h), assistance made available under this section
that is used to pay the costs for a student to attend a private
or religious school shall not be considered to be Federal aid
to the school, and the Federal Government shall have no
authority to influence or regulate the operations of a private
or religious school as a result of assistance received under
this section.
‘‘(e) CONTINUING ELIGIBILITY.—A student assisted
under this section shall remain eligible to continue receiving
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assistance under this section for at least 3 academic years
without regard to whether the student is eligible for assist-
ance under section 1114 or 1115(b).
‘‘(f) TUITION CHARGES.—Assistance under this section
may not be used to pay tuition or required fees at a private
elementary school or secondary school in an amount that
is greater than the tuition and required fees paid by stu-
dents not assisted under this section at such school.
‘‘(g) SPECIAL RULE.—Any school receiving assistance
provided under this section shall comply with title VI of
the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.) and
not discriminate on the basis of race, color, or national ori-
gin.
‘‘(h) ASSISTANCE; TAXES AND OTHER FEDERAL PRO-
GRAMS.—
‘‘(1) ASSISTANCE TO FAMILIES, NOT SCHOOLS.—
Assistance provided under this section shall be consid-
ered to be aid to families, not schools. Use of such as-
sistance at a school shall not be construed to be Fed-
eral financial aid or assistance to that school.
‘‘(2) TAXES
AND
DETERMINATIONS
OF
ELIGI-
BILITY FOR OTHER FEDERAL PROGRAMS.—Assistance
provided under this section to a student shall not be
considered to be income of the student or the parent
of such student for Federal, State, or local tax pur-
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poses or for determining eligibility for any other Fed-
eral program.
‘‘(i) PART B OF THE INDIVIDUALS WITH DISABILITIES
EDUCATION ACT.—Nothing in this section shall be con-
strued to affect the requirements of part B of the Individ-
uals with Disabilities Education Act (20 U.S.C. 1411 et
seq.).
‘‘(j) MAXIMUM AMOUNT.—Notwithstanding any other
provision of this section, the amount of assistance provided
under this part for a student shall not exceed the per pupil
expenditure for elementary or secondary education, as ap-
propriate, by the local educational agency that serves the
school where the criminal offense occurred for the fiscal year
preceding the fiscal year for which the determination is
made.’’.
SEC. 1796. TRANSFER OF REVENUES.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of Federal law, a State, a State educational agency,
or a local educational agency may transfer any non-Federal
public funds associated with the education of a student who
is a victim of a violent criminal offense while in or on the
grounds of a public elementary school or secondary school
served by a local educational agency to another local edu-
cational agency or to a private elementary school or sec-
ondary school, including a religious school.
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(b) DEFINITIONS.—For the purpose of subsection (a),
the terms ‘‘elementary school’’, ‘‘secondary school’’, ‘‘local
educational agency’’, and ‘‘State educational agency’’ have
the meanings given such terms in section 14101 of the Ele-
mentary and Secondary Education Act of 1965 (20 U.S.C.
8801).
SEC. 1797. INCREASED PENALTIES FOR DISTRIBUTING
DRUGS TO MINORS.
Section 418 of the Controlled Substances Act (21
U.S.C. 859) is amended—
(1) in subsection (a), by strking ‘‘one year’’ and
inserting ‘‘3 years’’; and
(2) in subsection (b), by striking ‘‘one year’’ and
inserting ‘‘5 years’’.
SEC. 1798. INCREASED PENALTY FOR DRUG TRAFFICKING
IN OR NEAR A SCHOOL OR OTHER PRO-
TECTED LOCATION.
Section 419 of the Controlled Substances Act (21
U.S.C. 860) is amended—
(1) in subsection (a), by striking ‘‘one year’’ and
inserting ‘‘3 years’’; and
(2) in subsection (b), by striking ‘‘three years’’
each place that term appears and inserting ‘‘5 years’’.
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SEC. 1799. SEVERABILITY.
Any provision of this title held to be invalid or unen-
forceable by its terms, or as applied to any person or cir-
cumstance, shall be construed as to give the maximum effect
permitted by law, unless such provision is held to be utterly
invalid or unenforceable, in which event such provision
shall be severed from this title and shall not affect the appli-
cability of the remainder of this title, or of such provision,
to other persons not similarly situated or to other, dis-
similar circumstances.
TITLE XVIII—PROTECTION FROM
THE IMPACT OF BANKRUPTCY
OF CERTAIN ELECTRIC UTILI-
TIES
SEC. 1801. SHORT TITLE.
This title may be cited as the ‘‘Emergency Imported
Electric Power Price Reduction Act of 2000’’.
SEC. 1802. FINDINGS AND PURPOSES.
(a) FINDINGS.—Congress finds that—
(1) the protection of the public health and wel-
fare, the preservation of national security, and the
regulation of interstate and foreign commerce require
that electric power imported into the United States be
priced fairly and competitively;
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(2) the importation of electric power into the
United States is a matter vested with the public in-
terest that—
(A) involves an essential and extensively
regulated infrastructure industry; and
(B) affects consumers, the cost of goods
manufactured and services rendered, and the eco-
nomic well-being and livelihood of individuals
and society;
(3) it is essential that imported electric power be
priced—
(A) in a manner that is competitive with
domestic electric power and thereby contribute to
robust and sound national and regional econo-
mies; and
(B) not at a rate that is so high as to result
in the imminent bankruptcy of electric utilities
in a State; and
(4) the purchase of imported electric power by
the Vermont Joint Owners under the Firm Power and
Energy Contract with Hydro-Quebec dated December
4, 1987—
(A) is not consistent with the findings stat-
ed in paragraphs (1), (2), and (3); and
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(B) threatens the economic well-being of the
States and regions in which the imported electric
power is provided contrary to the public policy
of the United States as set forth in the findings
stated in paragraphs (1), (2), and (3).
(b) PURPOSES.—The purposes of this title are—
(1) to facilitate the public policy of the United
States as set forth in the findings stated in para-
graphs (1), (2), and (3) of subsection (a);
(2) to remove a serious threat to the economic
well-being of the States and regions in which im-
ported electric power is provided under the contract
referred to in section 1802(a)(4); and
(3) to facilitate revisions to the price elements of
the contract referred to in section 1802(a)(4) by de-
claring and making unlawful, effective 180 days after
the date of enactment of this Act, the contract as it
exists on the date of enactment of this Act.
SEC. 1803. UNLAWFUL CONTRACT AND AMENDED CON-
TRACT.
(a) IN GENERAL.—Effective on the date that is 180
days after the date of enactment of this Act, the contract
referred to in section 1802(a)(4), as the contract exists on
the date of enactment of this Act, shall be void.
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(b) AMENDMENT OF CONTRACT.—This title does not
preclude the parties to the contract referred to in section
1802(a)(4) from amending the contract or entering into a
new contract after the date of enactment of this Act in a
manner that is consistent with the findings and purposes
of this title.
SEC. 1804. EXCLUSIVE ENFORCEMENT.
(a) IN GENERAL.—Only the Attorney General of a
State in which electric power is provided under the contract
referred to in section 1802(a)(4), as the contract may be
amended after the date of enactment of this Act, may bring
a civil action in United States district court for an order
that—
(1) declares the amended contract not consistent
with the findings and purposes of this title and is
therefore void;
(2) enjoins performance of the amended contract;
and
(3) relieves the electric utilities that are party to
the amended contract of any liability under the con-
tract.
(b) TIMING.—A civil action under subsection (a) shall
be brought not later than 1 year after the date of the amend-
ed contract or new contract.
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TITLE XIX—CONSUMER CREDIT
DISCLOSURE
SEC. 1901. ENHANCED DISCLOSURES UNDER AN OPEN END
CREDIT PLAN.
(a) 
MINIMUM
PAYMENT
DISCLOSURES.—Section
127(b) of the Truth in Lending Act (15 U.S.C. 1637(b))
is amended by adding at the end the following:
‘‘(11)(A) In the case of an open end credit plan
that requires a minimum monthly payment of not
more than 4 percent of the balance on which finance
charges are accruing, the following statement, located
on the front of the billing statement, disclosed clearly
and conspicuously, in typeface no smaller than the
largest typeface used to make other clear and con-
spicuous disclosures required under this subsection:
‘Minimum Payment Warning: Making only the min-
imum payment will increase the interest you pay and
the time it takes to repay your balance. For example,
making only the typical 2% minimum monthly pay-
ment on a balance of $1,000 at an interest rate of
17% would take 88 months to repay the balance in
full. For an estimate of the time it would take to
repay your balance, making only minimum pay-
ments, call this toll-free number: llllll.’.
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‘‘(B) In the case of an open end credit plan that
requires a minimum monthly payment of more than
4 percent of the balance on which finance charges are
accruing, the following statement, in a prominent lo-
cation on the front of the billing statement, disclosed
clearly and conspicuously, in typeface no smaller
than the largest typeface used to make other clear and
conspicuous disclosures required under this sub-
section: ‘Minimum Payment Warning: Making only
the required minimum payment will increase the in-
terest you pay and the time it takes to repay your
balance. Making a typical 5% minimum monthly
payment on a balance of $300 at an interest rate of
17% would take 24 months to repay the balance in
full. For an estimate of the time it would take to
repay your balance, making only minimum monthly
payments, call this toll-free number: llllll.’.
‘‘(C) Notwithstanding subparagraphs (A) and
(B), in the case of a creditor with respect to which
compliance with this title is enforced by the Federal
Trade Commission, the following statement, in a
prominent location on the front of the billing state-
ment, disclosed clearly and conspicuously, in typeface
no smaller than the largest typeface used to make
other clear and conspicuous disclosures under this
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subsection: ‘Minimum Payment Warning: Making
only the required minimum payment will increase the
interest you pay and the time it takes to repay your
balance. For example, making only the typical 5%
minimum monthly payment on a balance of $300 at
an interest rate of 17% would take 24 months to
repay the balance in full. For an estimate of the time
it would take to repay your balance, making only
minimum monthly payments, call the Federal Trade
Commission at this toll-free number: llllll.’
A creditor who is subject to this subparagraph shall
not be subject to subparagraph (A) or (B).
‘‘(D) Notwithstanding subparagraph (A), (B), or
(C), in complying with any such subparagraph, a
creditor may substitute an example based on an in-
terest rate that is greater than 17 percent. Any cred-
itor who is subject to subparagraph (B) may elect to
provide the disclosure required under subparagraph
(A) in lieu of the disclosure required under subpara-
graph (B).
‘‘(E) The Board shall, by rule, periodically recal-
culate, as necessary, the interest rate and repayment
period under subparagraphs (A), (B), and (C).
‘‘(F) The toll-free telephone number disclosed by
a creditor or the Federal Trade Commission under
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subparagraph (A), (B), or (G), as appropriate, may
be a toll-free telephone number established and main-
tained by the creditor or the Federal Trade Commis-
sion, as appropriate, or may be a toll-free telephone
number established and maintained by a third party
for use by the creditor or multiple creditors or the
Federal Trade Commission, as appropriate. The toll-
free telephone number may connect consumers to an
automated device through which consumers may ob-
tain information described in subparagraph (A), (B),
or (C), by inputting information using a touch-tone
telephone or similar device, if consumers whose tele-
phones are not equipped to use such automated device
are provided the opportunity to be connected to an in-
dividual from whom the information described in sub-
paragraph (A), (B), or (C), as applicable, may be ob-
tained. A person that receives a request for informa-
tion described in subparagraph (A), (B), or (C) from
an obligor through the toll-free telephone number dis-
closed under subparagraph (A), (B), or (C), as appli-
cable, shall disclose in response to such request only
the information set forth in the table promulgated by
the Board under subparagraph (H)(i).
‘‘(G) The Federal Trade Commission shall estab-
lish and maintain a toll-free number for the purpose
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of providing to consumers the information required to
be disclosed under subparagraph (C).
‘‘(H) The Board shall—
‘‘(i) establish a detailed table illustrating
the approximate number of months that it would
take to repay an outstanding balance if the con-
sumer pays only the required minimum monthly
payments and if no other advances are made,
which table shall clearly present standardized in-
formation to be used to disclose the information
required to be disclosed under subparagraph (A),
(B), or (C), as applicable;
‘‘(ii) establish the table required under
clause (i) by assuming—
‘‘(I) a significant number of different
annual percentage rates;
‘‘(II) a significant number of different
account balances;
‘‘(III) a significant number of different
minimum payment amounts; and
‘‘(IV) that only minimum monthly
payments are made and no additional ex-
tensions of credit are obtained; and
‘‘(iii) promulgate regulations that provide
instructional guidance regarding the manner in
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which the information contained in the table es-
tablished under clause (i) should be used in re-
sponding to the request of an obligor for any in-
formation required to be disclosed under sub-
paragraph (A), (B), or (C).
‘‘(I) The disclosure requirements of this para-
graph do not apply to any charge card account, the
primary purpose of which is to require payment of
charges in full each month.
‘‘(J) A creditor that maintains a toll-free tele-
phone number for the purpose of providing customers
with the actual number of months that it will take to
repay the consumer’s outstanding balance is not sub-
ject to the requirements of subparagraphs (A) and
(B).’’.
(b) REGULATORY IMPLEMENTATION.—The Board of
Governors of the Federal Reserve System (hereafter in this
Act referred to as the ‘‘Board’’) shall promulgate regulations
implementing the requirements of section 127(b)(11) of the
Truth in Lending Act, as added by subsection (a) of this
section. Section 127(b)(11) of the Truth in Lending Act,
as added by subsection (a) of this section, and the regula-
tions issued under this subsection shall not take effect until
the later of 18 months after the date of enactment of this
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Act or 12 months after the publication of such regulations
by the Board.
(c) STUDY OF FINANCIAL DISCLOSURES.—
(1) IN GENERAL.—The Board may conduct a
study to determine whether consumers have adequate
information about borrowing activities that may re-
sult in financial problems.
(2) FACTORS
FOR
CONSIDERATION.—In con-
ducting a study under paragraph (1), the Board
should, in consultation with the other Federal bank-
ing agencies (as defined in section 3 of the Federal
Deposit Insurance Act), the National Credit Union
Administration, and the Federal Trade Commission,
consider the extent to which—
(A) consumers, in establishing new credit
arrangements, are aware of their existing pay-
ment obligations, the need to consider those obli-
gations in deciding to take on new credit, and
how taking on excessive credit can result in fi-
nancial difficulty;
(B) minimum periodic payment features of-
fered in connection with open end credit plans
impact consumer default rates;
(C) consumers make only the minimum
payment under open end credit plans;
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(D) consumers are aware that making only
minimum payments will increase the cost and
repayment period of an open end credit obliga-
tion; and
(E) the availability of low minimum pay-
ment options is a cause of consumers experi-
encing financial difficulty.
(3) REPORT
TO
CONGRESS.—Findings of the
Board in connection with any study conducted under
this subsection shall be submitted to Congress. Such
report shall also include recommendations for legisla-
tive initiatives, if any, of the Board, based on its
findings.
SEC. 1902. ENHANCED DISCLOSURE FOR CREDIT EXTEN-
SIONS SECURED BY A DWELLING.
(a) OPEN END CREDIT EXTENSIONS.—
(1) CREDIT APPLICATIONS.—Section 127A(a)(13)
of the Truth in Lending Act (15 U.S.C. 1637a(a)(13))
is amended—
(A) by striking ‘‘CONSULTATION OF TAX AD-
VISOR.—A statement that the’’ and inserting the
following: ‘‘TAX
DEDUCTIBILITY.—A statement
that—
‘‘(A) the’’; and
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(B) by striking the period at the end and
inserting the following: ‘‘; and
‘‘(B) in any case in which the extension of
credit exceeds the fair market value (as defined
under the Federal Internal Revenue Code) of the
dwelling, the interest on the portion of the credit
extension that is greater than the fair market
value of the dwelling is not tax deductible for
Federal income tax purposes.’’.
(2) CREDIT ADVERTISEMENTS.—Section 147(b)
of the Truth in Lending Act (15
U.S.C. 1665b(b)) is
amended—
(A) by striking ‘‘If any’’ and inserting the
following:
‘‘(1) IN GENERAL.—If any’’; and
(B) by adding at the end the following:
‘‘(2) CREDIT
IN
EXCESS
OF
FAIR
MARKET
VALUE.—Each advertisement described in subsection
(a) that relates to an extension of credit that may ex-
ceed the fair market value of the dwelling, and which
advertisement is disseminated in paper form to the
public or through the Internet, as opposed to by radio
or television, shall include a clear and conspicuous
statement that—
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‘‘(A) the interest on the portion of the credit
extension that is greater than the fair market
value of the dwelling is not tax deductible for
Federal income tax purposes; and
‘‘(B) the consumer should consult a tax ad-
visor for further information regarding the de-
ductibility of interest and charges.’’.
(b) NON-OPEN END CREDIT EXTENSIONS.—
(1) CREDIT APPLICATIONS.—Section 128 of the
Truth in Lending Act (15 U.S.C. 1638) is amended—
(A) in subsection (a), by adding at the end
the following:
‘‘(15) In the case of a consumer credit trans-
action that is secured by the principal dwelling of the
consumer, in which the extension of credit may exceed
the fair market value of the dwelling, a clear and con-
spicuous statement that—
‘‘(A) the interest on the portion of the credit
extension that is greater than the fair market
value of the dwelling is not tax deductible for
Federal income tax purposes; and
‘‘(B) the consumer should consult a tax ad-
visor for further information regarding the de-
ductibility of interest and charges.’’; and
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(B) in subsection (b), by adding at the end
the following:
‘‘(3) In the case of a credit transaction described in
paragraph (15) of subsection (a), disclosures required by
that paragraph shall be made to the consumer at the time
of application for such extension of credit.’’.
(2) CREDIT ADVERTISEMENTS.—Section 144 of
the Truth in Lending Act (15 U.S.C. 1664) is amend-
ed by adding at the end the following:
‘‘(e) Each advertisement to which this section applies
that relates to a consumer credit transaction that is secured
by the principal dwelling of a consumer in which the exten-
sion of credit may exceed the fair market value of the dwell-
ing, and which advertisement is disseminated in paper
form to the public or through the Internet, as opposed to
by radio or television, shall clearly and conspicuously state
that—
‘‘(1) the interest on the portion of the credit ex-
tension that is greater than the fair market value of
the dwelling is not tax deductible for Federal income
tax purposes; and
‘‘(2) the consumer should consult a tax advisor
for further information regarding the deductibility of
interest and charges.’’.
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(c) REGULATORY IMPLEMENTATION.—The Board of
Governors of the Federal Reserve System (hereafter in this
title referred to as the ‘‘Board’’) shall promulgate regula-
tions implementing the requirements of subsections (a) and
(b) of this section. Such regulations shall not take effect
until the later of 12 months after the date of enactment of
this Act or 12 months after the publication of such regula-
tions by the Board.
SEC. 1903. DISCLOSURES RELATED TO ‘‘INTRODUCTORY
RATES’’.
(a) INTRODUCTORY
RATE
DISCLOSURES.—Section
127(c) of the Truth in Lending Act (15 U.S.C. 1637(c)) is
amended by adding at the end the following:
‘‘(6) ADDITIONAL NOTICE CONCERNING ‘INTRO-
DUCTORY RATES’.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), an application or solicitation
to open a credit card account and all pro-
motional materials accompanying such applica-
tion or solicitation, for which a disclosure is re-
quired under paragraph (1), and that offers a
temporary annual percentage rate of interest,
shall—
‘‘(i) use the term ‘introductory’ in im-
mediate proximity to each listing of the
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temporary annual percentage rate applica-
ble to such account, which term shall ap-
pear clearly and conspicuously;
‘‘(ii) if the annual percentage rate of
interest that will apply after the end of the
temporary rate period will be a fixed rate,
state the following in a clear and con-
spicuous manner in a prominent location
closely proximate to the first listing of the
temporary annual percentage rate (other
than a listing of the temporary annual per-
centage rate in the tabular format described
in section 122(c)) or, if the first listing is
not the most prominent listing, then closely
proximate to the most prominent listing of
the temporary annual percentage rate, in
each document and in no smaller type size
than the smaller of the type size in which
the proximate temporary annual percentage
rate appears or a 12-point type size, the
time period in which the introductory pe-
riod will end and the annual percentage
rate that will apply after the end of the in-
troductory period; and
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‘‘(iii) if the annual percentage rate
that will apply after the end of the tem-
porary rate period will vary in accordance
with an index, state the following in a clear
and conspicuous manner in a prominent lo-
cation closely proximate to the first listing
of the temporary annual percentage rate
(other than a listing in the tabular format
prescribed by section 122(c)) or, if the first
listing is not the most prominent listing,
then closely proximate to the most promi-
nent listing of the temporary annual per-
centage rate, in each document and in no
smaller type size than the smaller of the
type size in which the proximate temporary
annual percentage rate appears or a 12-
point type size, the time period in which the
introductory period will end and the rate
that will apply after that, based on an an-
nual percentage rate that was in effect with-
in 60 days before the date of mailing the
application or solicitation.
‘‘(B) EXCEPTION.—Clauses (ii) and (iii) of
subparagraph (A) do not apply with respect to
any listing of a temporary annual percentage
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HR 833 EAS
rate on an envelope or other enclosure in which
an application or solicitation to open a credit
card account is mailed.
‘‘(C) 
CONDITIONS
FOR
INTRODUCTORY
RATES.—An application or solicitation to open a
credit card account for which a disclosure is re-
quired under paragraph (1), and that offers a
temporary annual percentage rate of interest
shall, if that rate of interest is revocable under
any circumstance or upon any event, clearly and
conspicuously disclose, in a prominent manner
on or with such application or solicitation—
‘‘(i) a general description of the cir-
cumstances that may result in the revoca-
tion of the temporary annual percentage
rate; and
‘‘(ii) if the annual percentage rate that
will apply upon the revocation of the tem-
porary annual percentage rate—
‘‘(I) will be a fixed rate, the an-
nual percentage rate that will apply
upon the revocation of the temporary
annual percentage rate; or
‘‘(II) will vary in accordance with
an index, the rate that will apply after