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INSTITUTE OF MUSEUM AND LIBRARY SERVICES
OFFICE OF LIBRARY SERVICES: GRANTS AND
ADMINISTRATION
For carrying out subtitle B of the Museum and Li-
brary Services Act, $168,078,000, of which $11,081,000
shall be for projects authorized by section 262 of such Act,
notwithstanding section 221(a)(1)(B).
MEDICARE PAYMENT ADVISORY COMMISSION
SALARIES AND EXPENSES
For expenses necessary to carry out section 1805 of the
Social Security Act, $8,500,000, to be transferred to this
appropriation from the Federal Hospital Insurance and the
Federal Supplementary Medical Insurance Trust Funds.
NATIONAL COMMISSION ON LIBRARIES AND INFORMATION
SCIENCE
SALARIES AND EXPENSES
For necessary expenses for the National Commission
on Libraries and Information Science, established by the
Act of July 20, 1970 (Public Law 91–345, as amended),
$1,495,000.
NATIONAL COUNCIL ON DISABILITY
SALARIES AND EXPENSES
For expenses necessary for the National Council on
Disability as authorized by title IV of the Rehabilitation
Act of 1973, as amended, $2,830,000.
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NATIONAL EDUCATION GOALS PANEL
For expenses necessary for the National Education
Goals Panel, as authorized by title II, part A of the Goals
2000: Educate America Act, $2,000,000.
NATIONAL LABOR RELATIONS BOARD
SALARIES AND EXPENSES
For expenses necessary for the National Labor Rela-
tions Board to carry out the functions vested in it by the
Labor-Management Relations Act, 1947, as amended (29
U.S.C. 141–167), and other laws, $226,438,000: Provided,
That no part of this appropriation shall be available to or-
ganize or assist in organizing agricultural laborers or used
in connection with investigations, hearings, directives, or
orders concerning bargaining units composed of agricul-
tural laborers as referred to in section 2(3) of the Act of
July 5, 1935 (29 U.S.C. 152), and as amended by the
Labor-Management Relations Act, 1947, as amended, and
as defined in section 3(f) of the Act of June 25, 1938 (29
U.S.C. 203), and including in said definition employees en-
gaged in the maintenance and operation of ditches, canals,
reservoirs, and waterways when maintained or operated on
a mutual, nonprofit basis and at least 95 percent of the
water stored or supplied thereby is used for farming pur-
poses.
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NATIONAL MEDIATION BOARD
SALARIES AND EXPENSES
For expenses necessary to carry out the provisions of
the Railway Labor Act, as amended (45 U.S.C. 151–188),
including emergency boards appointed by the President,
$10,635,000.
OCCUPATIONAL SAFETY AND HEALTH REVIEW
COMMISSION
SALARIES AND EXPENSES
For expenses necessary for the Occupational Safety
and Health Review Commission (29 U.S.C. 661),
$8,964,000.
RAILROAD RETIREMENT BOARD
DUAL BENEFITS PAYMENTS ACCOUNT
For payment to the Dual Benefits Payments Account,
authorized under section 15(d) of the Railroad Retirement
Act of 1974, $146,000,000, which shall include amounts be-
coming available in fiscal year 2002 pursuant to section
224(c)(1)(B) of Public Law 98–76; and in addition, an
amount, not to exceed 2 percent of the amount provided
herein, shall be available proportional to the amount by
which the product of recipients and the average benefit re-
ceived exceeds $146,000,000: Provided, That the total
amount provided herein shall be credited in 12 approxi-
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mately equal amounts on the first day of each month in
the fiscal year.
FEDERAL PAYMENTS TO THE RAILROAD RETIREMENT
ACCOUNTS
For payment to the accounts established in the Treas-
ury for the payment of benefits under the Railroad Retire-
ment Act for interest earned on unnegotiated checks,
$150,000, to remain available through September 30, 2003,
which shall be the maximum amount available for payment
pursuant to section 417 of Public Law 98–76.
LIMITATION ON ADMINISTRATION
For necessary expenses for the Railroad Retirement
Board for administration of the Railroad Retirement Act
and 
the 
Railroad 
Unemployment 
Insurance 
Act,
$97,700,000, to be derived in such amounts as determined
by the Board from the railroad retirement accounts and
from moneys credited to the railroad unemployment insur-
ance administration fund.
LIMITATION ON THE OFFICE OF INSPECTOR GENERAL
For expenses necessary for the Office of Inspector Gen-
eral for audit, investigatory and review activities, as au-
thorized by the Inspector General Act of 1978, as amended,
not more than $6,480,000, to be derived from the railroad
retirement accounts and railroad unemployment insurance
account: Provided, That none of the funds made available
in any other paragraph of this Act may be transferred to
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the Office; used to carry out any such transfer; used to pro-
vide any office space, equipment, office supplies, commu-
nications facilities or services, maintenance services, or ad-
ministrative services for the Office; used to pay any salary,
benefit, or award for any personnel of the Office; used to
pay any other operating expense of the Office; or used to
reimburse the Office for any service provided, or expense
incurred, by the Office: Provided further, That funds made
available under the heading in this Act, or subsequent De-
partments of Labor, Health and Human Services, and Edu-
cation, and Related Agencies Appropriations Act, may be
used for any audit, investigation, or review of the Medicare
program.
SOCIAL SECURITY ADMINISTRATION
PAYMENTS TO SOCIAL SECURITY TRUST FUNDS
For payment to the Federal Old-Age and Survivors In-
surance and the Federal Disability Insurance trust funds,
as provided under sections 201(m), 217(g), 228(g), and
1131(b)(2) of the Social Security Act, $434,400,000.
SPECIAL BENEFITS FOR DISABLED COAL MINERS
For carrying out title IV of the Federal Mine Safety
and Health Act of 1977, $332,840,000, to remain available
until expended.
For making, after July 31 of the current fiscal year,
benefit payments to individuals under title IV of the Fed-
eral Mine Safety and Health Act of 1977, for costs incurred
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in the current fiscal year, such amounts as may be nec-
essary.
For making benefit payments under title IV of the Fed-
eral Mine Safety and Health Act of 1977 for the first quar-
ter of fiscal year 2003, $108,000,000, to remain available
until expended.
SUPPLEMENTAL SECURITY INCOME PROGRAM
For carrying out titles XI and XVI of the Social Secu-
rity Act, section 401 of Public Law 92–603, section 212
of Public Law 93–66, as amended, and section 405 of Public
Law 95–216, including payment to the Social Security
trust funds for administrative expenses incurred pursuant
to 
section 
201(g)(1) 
of 
the 
Social 
Security 
Act,
$21,277,412,000, to remain available until expended: Pro-
vided, That any portion of the funds provided to a State
in the current fiscal year and not obligated by the State
during that year shall be returned to the Treasury.
In addition, $200,000,000, to remain available until
September 30, 2003, for payment to the Social Security
trust funds for administrative expenses for continuing dis-
ability reviews as authorized by section 103 of Public Law
104–121 and section 10203 of Public Law 105–33. The term
‘‘continuing disability reviews’’ means reviews and redeter-
minations as defined under section 201(g)(1)(A) of the So-
cial Security Act, as amended.
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For making, after June 15 of the current fiscal year,
benefit payments to individuals under title XVI of the So-
cial Security Act, for unanticipated costs incurred for the
current fiscal year, such sums as may be necessary.
For making benefit payments under title XVI of the
Social Security Act for the first quarter of fiscal year 2003,
$10,790,000,000, to remain available until expended.
LIMITATION ON ADMINISTRATIVE EXPENSES
For necessary expenses, including the hire of two pas-
senger motor vehicles, and not to exceed $35,000 for official
reception and representation expenses, not more than
$7,035,000,000 may be expended, as authorized by section
201(g)(1) of the Social Security Act, from any one or all
of the trust funds referred to therein: Provided, That not
less than $1,800,000 shall be for the Social Security Advi-
sory Board: Provided further, That unobligated balances at
the end of fiscal year 2002 not needed for fiscal year 2002
shall remain available until expended to invest in the So-
cial Security Administration information technology and
telecommunications hardware and software infrastructure,
including related equipment and non-payroll administra-
tive expenses associated solely with this information tech-
nology and telecommunications infrastructure: Provided
further, That reimbursement to the trust funds under this
heading for expenditures for official time for employees of
the Social Security Administration pursuant to section
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7131 of title 5, United States Code, and for facilities or
support services for labor organizations pursuant to poli-
cies, regulations, or procedures referred to in section
7135(b) of such title shall be made by the Secretary of the
Treasury, with interest, from amounts in the general fund
not otherwise appropriated, as soon as possible after such
expenditures are made.
From funds provided under the first paragraph, not
less than $200,000,000 shall be available for conducting
continuing disability reviews.
In addition to funding already available under this
heading, and subject to the same terms and conditions,
$433,000,000, to remain available until September 30,
2003, for continuing disability reviews as authorized by sec-
tion 103 of Public Law 104–121 and section 10203 of Pub-
lic Law 105–33. The term ‘‘continuing disability reviews’’
means reviews and redeterminations as defined under sec-
tion 201(g)(1)(A) of the Social Security Act, as amended.
In addition, $100,000,000 to be derived from adminis-
tration fees in excess of $5.00 per supplementary payment
collected pursuant to section 1616(d) of the Social Security
Act or section 212(b)(3) of Public Law 93–66, which shall
remain available until expended. To the extent that the
amounts collected pursuant to such section 1616(d) or
212(b)(3) in fiscal year 2002 exceed $100,000,000, the
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amounts shall be available in fiscal year 2003 only to the
extent provided in advance in appropriations Acts.
From funds previously appropriated for this purpose,
any unobligated balances at the end of fiscal year 2001 shall
be available to continue Federal-State partnerships which
will evaluate means to promote Medicare buy-in programs
targeted to elderly and disabled individuals under titles
XVIII and XIX of the Social Security Act.
OFFICE OF INSPECTOR GENERAL
(INCLUDING TRANSFER OF FUNDS)
For expenses necessary for the Office of Inspector Gen-
eral in carrying out the provisions of the Inspector General
Act of 1978, as amended, $19,000,000, together with not to
exceed $56,000,000, to be transferred and expended as au-
thorized by section 201(g)(1) of the Social Security Act from
the Federal Old-Age and Survivors Insurance Trust Fund
and the Federal Disability Insurance Trust Fund.
In addition, an amount not to exceed 3 percent of the
total provided in this appropriation may be transferred
from the ‘‘Limitation on Administrative Expenses’’, Social
Security Administration, to be merged with this account,
to be available for the time and purposes for which this
account is available: Provided, That notice of such transfers
shall be transmitted promptly to the Committees on Appro-
priations of the House and Senate.
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UNITED STATES INSTITUTE OF PEACE
OPERATING EXPENSES
For necessary expenses of the United States Institute
of Peace as authorized in the United States Institute of
Peace Act, $15,207,000.
TITLE V—GENERAL PROVISIONS
SEC. 501. The Secretaries of Labor, Health and
Human Services, and Education are authorized to transfer
unexpended balances of prior appropriations to accounts
corresponding to current appropriations provided in this
Act: Provided, That such transferred balances are used for
the same purpose, and for the same periods of time, for
which they were originally appropriated.
SEC. 502. No part of any appropriation contained in
this Act shall remain available for obligation beyond the
current fiscal year unless expressly so provided herein.
SEC. 503. (a) No part of any appropriation contained
in this Act shall be used, other than for normal and recog-
nized executive-legislative relationships, for publicity or
propaganda purposes, for the preparation, distribution, or
use of any kit, pamphlet, booklet, publication, radio, tele-
vision, or video presentation designed to support or defeat
legislation pending before the Congress or any State legisla-
ture, except in presentation to the Congress or any State
legislature itself.
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(b) No part of any appropriation contained in this
Act shall be used to pay the salary or expenses of any grant
or contract recipient, or agent acting for such recipient, re-
lated to any activity designed to influence legislation or ap-
propriations pending before the Congress or any State legis-
lature.
SEC. 504. The Secretaries of Labor and Education are
authorized to make available not to exceed $20,000 and
$15,000, respectively, from funds available for salaries and
expenses under titles I and III, respectively, for official re-
ception and representation expenses; the Director of the
Federal Mediation and Conciliation Service is authorized
to make available for official reception and representation
expenses not to exceed $2,500 from the funds available for
‘‘Salaries and expenses, Federal Mediation and Concilia-
tion Service’’; and the Chairman of the National Mediation
Board is authorized to make available for official reception
and representation expenses not to exceed $2,500 from funds
available for ‘‘Salaries and expenses, National Mediation
Board’’.
SEC. 505. Notwithstanding any other provision of this
Act, no funds appropriated under this Act shall be used to
carry out any program of distributing sterile needles or sy-
ringes for the hypodermic injection of any illegal drug un-
less the Secretary of Health and Human Services deter-
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mines that such programs are effective in preventing the
spread of HIV and do not encourage the use of illegal drugs.
SEC. 506. (a) It is the sense of the Congress that, to
the greatest extent practicable, all equipment and products
purchased with funds made available in this Act should be
American-made.
(b) In providing financial assistance to, or entering
into any contract with, any entity using funds made avail-
able in this Act, the head of each Federal agency, to the
greatest extent practicable, shall provide to such entity a
notice describing the statement made in subsection (a) by
the Congress.
(c) If it has been finally determined by a court or Fed-
eral agency that any person intentionally affixed a label
bearing a ‘‘Made in America’’ inscription, or any inscrip-
tion with the same meaning, to any product sold in or
shipped to the United States that is not made in the United
States, the person shall be ineligible to receive any contract
or subcontract made with funds made available in this Act,
pursuant to the debarment, suspension, and ineligibility
procedures described in sections 9.400 through 9.409 of title
48, Code of Federal Regulations.
SEC. 507. When issuing statements, press releases, re-
quests for proposals, bid solicitations and other documents
describing projects or programs funded in whole or in part
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with Federal money, all grantees receiving Federal funds
included in this Act, including but not limited to State and
local governments and recipients of Federal research grants,
shall clearly state: (1) the percentage of the total costs of
the program or project which will be financed with Federal
money; (2) the dollar amount of Federal funds for the
project or program; and (3) percentage and dollar amount
of the total costs of the project or program that will be fi-
nanced by non-governmental sources.
SEC. 508. (a) None of the funds appropriated under
this Act, and none of the funds in any trust fund to which
funds are appropriated under this Act, shall be expended
for any abortion.
(b) None of the funds appropriated under this Act, and
none of the funds in any trust fund to which funds are
appropriated under this Act, shall be expended for health
benefits coverage that includes coverage of abortion.
(c) The term ‘‘health benefits coverage’’ means the
package of services covered by a managed care provider or
organization pursuant to a contract or other arrangement.
SEC. 509. (a) The limitations established in the pre-
ceding section shall not apply to an abortion—
(1) if the pregnancy is the result of an act of
rape or incest; or
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(2) in the case where a woman suffers from a
physical disorder, physical injury, or physical illness,
including a life-endangering physical condition
caused by or arising from the pregnancy itself, that
would, as certified by a physician, place the woman
in danger of death unless an abortion is performed.
(b) Nothing in the preceding section shall be construed
as prohibiting the expenditure by a State, locality, entity,
or private person of State, local, or private funds (other
than a State’s or locality’s contribution of Medicaid match-
ing funds).
(c) Nothing in the preceding section shall be construed
as restricting the ability of any managed care provider
from offering abortion coverage or the ability of a State or
locality to contract separately with such a provider for such
coverage with State funds (other than a State’s or locality’s
contribution of Medicaid matching funds).
SEC. 510. (a) None of the funds made available in this
Act may be used for—
(1) the creation of a human embryo or embryos
for research purposes; or
(2) research in which a human embryo or em-
bryos are destroyed, discarded, or knowingly subjected
to risk of injury or death greater than that allowed
for research on fetuses in utero under 45 CFR
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46.208(a)(2) and section 498(b) of the Public Health
Service Act (42 U.S.C. 289g(b)).
(b) For purposes of this section, the term ‘‘human em-
bryo or embryos’’ includes any organism, not protected as
a human subject under 45 CFR 46 as of the date of the
enactment of this Act, that is derived by fertilization, par-
thenogenesis, cloning, or any other means from one or more
human gametes or human diploid cells.
SEC. 511. (a) None of the funds made available in this
Act may be used for any activity that promotes the legaliza-
tion of any drug or other substance included in schedule
I of the schedules of controlled substances established by sec-
tion 202 of the Controlled Substances Act (21 U.S.C. 812).
(b) The limitation in subsection (a) shall not apply
when there is significant medical evidence of a therapeutic
advantage to the use of such drug or other substance or that
federally sponsored clinical trials are being conducted to de-
termine therapeutic advantage.
SEC. 512. None of the funds made available in this
Act may be obligated or expended to enter into or renew
a contract with an entity if—
(1) such entity is otherwise a contractor with the
United States and is subject to the requirement in
section 4212(d) of title 38, United States Code, re-
garding submission of an annual report to the Sec-
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retary of Labor concerning employment of certain vet-
erans; and
(2) such entity has not submitted a report as re-
quired by that section for the most recent year for
which such requirement was applicable to such entity.
SEC. 513. None of the funds made available in this
Act may be used to promulgate or adopt any final standard
under section 1173(b) of the Social Security Act (42 U.S.C.
1320d–2(b)) providing for, or providing for the assignment
of, a unique health identifier for an individual (except in
an individual’s capacity as an employer or a health care
provider), until legislation is enacted specifically approving
the standard.
SEC. 514. None of the funds in this Act for the Depart-
ments of Labor, Health and Human Services, and Edu-
cation may be used to make a grant unless the House and
Senate Committees on Appropriations are notified not less
than three full business days before any discretionary grant
awards or cooperative agreement, totaling $500,000 or more
is announced by these departments from any discretionary
grant program other than emergency relief programs: Pro-
vided, That no notification shall involve funds that are not
available for obligation.
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SEC. 515. Section 102 of the Secure Rural Schools and
Community Self-Determination Act of 2000 (16 U.S.C. 500
note) is amended by adding at the end the following:
‘‘(f) STATE CONTRIBUTIONS.—
‘‘(1) SUPPLEMENT, NOT SUPPLANT.—
‘‘(A) IN
GENERAL.—Effective October 1,
2002, the portion of the funds made available to
a State to carry out this section for a fiscal year
that exceeds the baseline funding for the State
shall be used to supplement and not supplant
State (including local) public funds expended to
provide free public education.
‘‘(B) DEFINITIONS.—In this paragraph:
‘‘(i) BASELINE
FUNDING.—The term
‘baseline funding’, used with respect to a
State, means the funds made available to
the State to carry out this section for fiscal
year 2000, increased or decreased by the
same percentage as the percentage by which
the Consumer Price Index for All Urban
Consumers (United States city average),
published by the Secretary of Labor, has in-
creased or decreased by June of the pre-
ceding fiscal year from such Index for June
2000.
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‘‘(i) exceptional or uncontrollable cir-
cumstances such as a natural disaster; or
‘‘(ii) a precipitous decline in the fi-
nancial resources of the State.
‘‘(D) DEFINITIONS.—In this paragraph:
‘‘(i) AGGREGATE EXPENDITURE.—The
term ‘aggregate expenditure’, used with re-
spect to a State, shall not include any funds
received by the State under this Act.
‘‘(ii) BASELINE
EXPENDITURE.—The
term ‘baseline expenditure’, used with re-
spect to a State, means the aggregate ex-
penditure of the State with respect to the
provision of free public education by such
State for fiscal year 2000, increased or de-
creased by the same percentage as the per-
centage by which the Consumer Price Index
for All Urban Consumers (United States
city average), published by the Secretary of
Labor, has increased or decreased by June
of the preceding fiscal year from such Index
for June 2000.
‘‘(iii) FREE PUBLIC EDUCATION.—The
term ‘free public education’ has the mean-
ing given the term in paragraph (1).’’.
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SEC. 516. (a) FINDINGS.—The Senate finds the fol-
lowing:
(1) The Low-Income Home Energy Assistance
Program (referred to in this section as ‘‘LIHEAP’’)
is the primary Federal program available to help
low-income households, the elderly, and individuals
with disabilities pay their home energy bills.
(2) Congress provided $300,000,000 in emer-
gency funding for LIHEAP in the Supplemental Ap-
propriations Act, 2001 because regular appropria-
tions were insufficient to help States offset the in-
crease in high utility bills during the winter of 2000–
2001.
(3) Congress expected that half of the emergency
funding would be made available for targeted assist-
ance to States with the most critical needs, and half
would be given to help States address unmet energy
assistance needs resulting from the extraordinary
price increases in home heating fuels and residential
natural gas, experienced during the winter of 2000–
2001.
(4) In the winter of 2000–2001, there was a 30
percent increase in households receiving LIHEAP as-
sistance in large part due to the high price of home
energy and severe weather.
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(5) In the winter of 2000–2001, the LIHEAP
program was only able to serve 17 percent of the
29,000,000 households eligible for LIHEAP assist-
ance.
(6) In the winter of 2000–2001—
(A) heating oil prices were 36 percent high-
er than in the winter of 1999–2000, and residen-
tial natural gas cost 42 percent more per cubic
foot than in the winter of 1999–2000; and
(B) the weather was 10 percent colder than
in the winter of 1999–2000.
(7) In the winter of 2000–2001, record cold
weather and high home energy bills took a financial
toll on low-income families and the elderly who spend,
on average, 19.5 percent of their annual income on
energy bills, as compared to 3.7 percent for all other
households.
(8) Families in the United States need emer-
gency LIHEAP funding to pay home energy bills
from the winter of 2000–2001 and restore heat as the
succeeding winter approaches.
(9) More citizens will need LIHEAP assistance
in fiscal year 2002 due to the recent increase in un-
employment and the slowing economy.
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(10) States are being forced to draw down fiscal
year 2002 LIHEAP funds in order to address unmet
needs from fiscal year 2001 and help low-income
households pay overdue home energy bills.
(11) Emergency LIHEAP funding will provide
States with critical resources to help provide assist-
ance to residents.
(b) SENSE OF THE SENATE.—It is the sense of the Sen-
ate that the President should immediately release the
$300,000,000 in emergency funding for LIHEAP provided
by the Supplemental Appropriations Act, 2001.
SEC. 517. (a) Section 10 of the Native Hawaiian
Health Care Improvement Act (42 U.S.C. 11709) is
amended—
(1) in subsection (a) in the matter preceding
paragraph (1), by striking ‘‘Kamehameha School/
Bishop Estate’’ and inserting ‘‘Papa Ola Lokahi’’;
and
(2) in subsection (b)(1)(C), by striking ‘‘Kame-
hameha School/Bishop Estate’’ and inserting ‘‘Papa
Ola Lokahi’’.
(b) Section 338K(a) of the Public Health Service
Act (42 U.S.C. 254s(a)) is amended by striking ‘‘Ka-
mehameha School/Bishop Estate’’ and inserting
‘‘Papa Ola Lokahi’’.
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SEC. 518. (a) REPORT.—Not later than 180 days after
the date of enactment of this Act, the Comptroller General
of the United States shall submit a report to the Committee
on Finance and the Committee on Health, Education,
Labor, and Pensions of the Senate and to the Committee
on Energy and Commerce and the Committee on Ways and
Means of the House of Representatives on the matters de-
scribed in subsection (b) with respect to the administrative
simplification requirements of the Health Insurance Port-
ability and Accountability Act of 1996 (Public Law 104–
191; 110 Stat. 2021) and programs administered by State
and local units of government.
(b) MATTERS STUDIES.—For purposes of subsection
(a), the matters described in this subsection include the fol-
lowing:
(1) An assessment of Federal programs adminis-
tered by State and local units of government, includ-
ing local educational agencies, explicitly required to
implement the administrative simplification require-
ments under provisions of the Health Insurance Port-
ability and Accountability Act of 1996.
(2) An assessment of other Federal and non-Fed-
eral programs administered by State and local units
of government, including local educational agencies,
that will be required to implement the administrative
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simplification requirements of the Health Insurance
Portability and Accountability Act of 1996 in order
to exchange electronic health data with private sector
providers and insurers.
(3) An analysis of the costs that will be incurred
by State and local units of government, including
local educational agencies, to implement the adminis-
trative simplification requirements of the Health In-
surance Portability and Accountability Act of 1996
in programs described in paragraph (1) or (2).
(4) An analysis of Federal resources available to
units of State and local government, including local
educational agencies, for implementing the adminis-
trative simplification requirements of the Health In-
surance Portability and Accountability Act of 1996
in programs described in paragraph (1) or (2).
(5) An assessment of guidance provided to State
and local units of government, including local edu-
cational agencies, by the Centers for Medicare and
Medicaid Services and the Department of Health and
Human Services on the implementation of the admin-
istrative simplification requirements of the Health In-
surance Portability and Accountability Act of 1996
in programs described in paragraph (1) or (2).
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(6) An assessment of the coordination between
the Centers for Medicare and Medicaid Services, the
Department of Health and Human Services, and
other Federal agencies on the implementation of the
administrative simplification requirements of the
Health Insurance Portability and Accountability Act
of 1996 in Federal programs administered by State
and local units of government, including local edu-
cational agencies, in programs described in para-
graph (1) or (2).
(c) DEFINITION.—In this section, the term ‘‘adminis-
trative simplification requirements’’ means all standards
for transactions, data elements for such transactions,
unique health identifiers, code sets, security, and privacy
issued pursuant to sections 262 and 264 of the Health In-
surance Portability and Accountability Act of 1996.
SEC. 519. (a) DEFINITION.—In this section the term
‘‘qualified magistrate judge’’ means any person who—
(1) retired as a magistrate judge before Novem-
ber 15, 1988; and
(2) on the date of filing an election under sub-
section (b)—
(A) is serving as a recalled magistrate judge
on a full-time basis under section 636(h) of title
28, United States Code; and
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(B) has completed at least 5 years of full-
time recall service.
(b) ELECTION OF ANNUITY.—The Director of the Ad-
ministrative Office of the United States Courts may accept
the election of a qualified magistrate judge to—
(1) receive an annuity under section 377 of title
28, United States Code; and
(2) come within the purview of section 376 of
such title.
(c) CREDIT FOR SERVICE.—Full-time recall service
performed by a qualified magistrate judge shall be credited
for service in calculating an annuity elected under this sec-
tion.
(d) REGULATIONS.—The Director of the Administra-
tive Office of the United States Courts may promulgate reg-
ulations to carry out this section.
SEC. 520. Nothing in section 134 of H.R. 2217 shall
be construed to overturn or otherwise effect the decision of
the U.S. Court of Appeals for the Tenth Circuit in the case
of Sac and Fox Nation v. Norton, 240 F.3d 1250 (10th
Cir.2001), or to permit gaming under the Indian Gaming
Regulatory Act on lands described in section 123 of Public
Law 106–291 or any lands contiguous to such lands that
have or have not been taken into trust by the Secretary of
the Interior.
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SEC. 521. Amounts made available under this Act for
the administrative and related expenses for departmental
management for the Department of Labor, the Department
of Health and Human Services, and the Department of
Education, shall be reduced on a pro rata basis by
$98,500,000: Provided, That this provision shall not apply
to the Food and Drug Administration and the Indian
Health Service: Provided further, That not later than 15
days after the enactment of this Act, the Director of the Of-
fice of Management and Budget shall report to the Senate
Committee on Appropriations the accounts subject to the
pro rata reductions and the amount to be reduced in each
account.
TITLE VI—EXTENSION OF MARK-
TO-MARKET 
PROGRAM 
FOR
MULTIFAMILY 
ASSISTED
HOUSING
SEC. 601. SHORT TITLE AND TABLE OF CONTENTS.
(a) SHORT TITLE.—This title may be cited as the
‘‘Mark-to-Market Extension Act of 2001’’.
(b) TABLE OF CONTENTS.—The table of contents for
this title is as follows:
TITLE VI—EXTENSION OF MARK-TO-MARKET PROGRAM FOR
MULTIFAMILY ASSISTED HOUSING
Sec. 601. Short title and table of contents.
Sec. 602. Purposes.
Sec. 603. Effective date.
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Subtitle A—Multifamily Housing Mortgage and Assistance Restructuring and
Section 8 Contract Renewal
Sec. 611. Definitions.
Sec. 612. Mark-to-market program amendments.
Sec. 613. Consistency of rent levels under enhanced voucher assistance and rent
restructurings.
Sec. 614. Eligible inclusions for renewal rents of partially assisted buildings.
Sec. 615. Eligibility of restructuring projects for miscellaneous housing insurance.
Sec. 616. Technical corrections.
Subtitle B—Office of Multifamily Housing Assistance Restructuring
Sec. 621. Reauthorization of Office and extension of program.
Sec. 622. Appointment of Director.
Sec. 623. Vacancy in position of Director.
Sec. 624. Oversight by Federal Housing Commissioner.
Sec. 625. Limitation on subsequent employment.
Subtitle C—Miscellaneous Housing Program Amendments
Sec. 631. Extension of CDBG public services cap exception.
Sec. 632. Use of section 8 enhanced vouchers for prepayments.
Sec. 633. Prepayment and refinancing of loans for section 202 supportive hous-
ing.
Sec. 634. Technical correction.
SEC. 602. PURPOSES.
The purposes of this title are—
(1) to continue the progress of the Multifamily
Assisted Housing Reform and Affordability Act of
1997 (referred to in this section as ‘‘that Act’’);
(2) to ensure that properties that undergo mort-
gage restructurings pursuant to that Act are rehabili-
tated to a standard that allows the properties to meet
their long-term affordability requirements;
(3) to ensure that, for properties that undergo
mortgage restructurings pursuant to that Act, reserves
are set at adequate levels to allow the properties to
meet their long-term affordability requirements;
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(4) to ensure that properties that undergo mort-
gage restructurings pursuant to that Act are operated
efficiently, and that operating expenses are sufficient
to ensure the long-term financial and physical integ-
rity of the properties;
(5) to ensure that properties that undergo rent
restructurings have adequate resources to maintain
the properties in good condition;
(6) to ensure that the Office of Multifamily
Housing Assistance Restructuring of the Department
of Housing and Urban Development continues to
focus on the portfolio of properties eligible for restruc-
turing under that Act;
(7) to ensure that the Department of Housing
and Urban Development carefully tracks the condition
of those properties on an ongoing basis;
(8) to ensure that tenant groups, nonprofit orga-
nizations, and public entities continue to have the re-
sources for building the capacity of tenant organiza-
tions in furtherance of the purposes of subtitle A of
that Act; and
(9) to encourage the Office of Multifamily Hous-
ing Assistance Restructuring to continue to provide
participating administrative entities, including pub-
lic participating administrative entities, with the
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flexibility to respond to specific problems that indi-
vidual cases may present, while ensuring consistent
outcomes around the country.
SEC. 603. EFFECTIVE DATE.
Except as provided in sections 616(a)(2), 633(b), and
634(b), this title and the amendments made by this title
shall take effect or are deemed to have taken effect, as appro-
priate, on the earlier of—
(1) the date of the enactment of this title; or
(2) September 30, 2001.
Subtitle 
A—Multifamily 
Housing
Mortgage and Assistance Re-
structuring and Section 8 Con-
tract Renewal
SEC. 611. DEFINITIONS.
Section 512 of the Multifamily Assisted Housing Re-
form and Affordability Act of 1997 (42 U.S.C. 1437f note)
is amended by adding at the end the following new para-
graph:
‘‘(19) OFFICE.—The term ‘Office’ means the Of-
fice of Multifamily Housing Assistance Restructuring
established under section 571.’’.
SEC. 612. MARK-TO-MARKET PROGRAM AMENDMENTS.
(a) FUNDING FOR TENANT AND NONPROFIT PARTICI-
PATION.—Section 514(f)(3)(A) of the Multifamily Assisted
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Housing Reform and Affordability Act of 1997 (42 U.S.C.
1437f note) is amended—
(1) by striking ‘‘Secretary may provide not more
than $10,000,000 annually in funding’’ and inserting
‘‘Secretary shall make available not more than
$10,000,000 annually in funding, which amount shall
be in addition to any amounts made available under
this subparagraph and carried over from previous
years,’’; and
(2) by striking ‘‘entities), and for tenant serv-
ices,’’ and inserting ‘‘entities), for tenant services, and
for tenant groups, nonprofit organizations, and public
entities described in section 517(a)(5),’’.
(b) EXCEPTION RENTS.—Section 514(g)(2)(A) of the
Multifamily Assisted Housing Reform and Affordability
Act of 1997 (42 U.S.C. 1437f note) is amended by striking
‘‘restructured mortgages in any fiscal year’’ and inserting
‘‘portfolio restructuring agreements’’.
(c) NOTICE TO DISPLACED TENANTS.—Section 516(d)
of the Multifamily Assisted Housing Reform and Afford-
ability Act of 1997 (42 U.S.C. 1437f note) is amended by
striking ‘‘Subject to’’ and inserting the following:
‘‘(1) NOTICE TO CERTAIN RESIDENTS.—The Of-
fice shall notify any tenant that is residing in a
project or receiving assistance under section 8 of the
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United States Housing Act of 1937 (42 U.S.C. 1437f)
at the time of rejection under this section, of such re-
jection, except that the Office may delegate the respon-
sibility to provide notice under this paragraph to the
participating administrative entity.
‘‘(2) ASSISTANCE AND MOVING EXPENSES.—Sub-
ject to’’.
(d) RESTRUCTURING PLANS FOR TRANSFERS OF PRE-
PAYMENT PROJECTS.—The Multifamily Assisted Housing
Reform and Affordability Act of 1997 (42 U.S.C. 1437f
note) is amended—
(1) in section 524(e), by adding at the end the
following new paragraph:
‘‘(3) MORTGAGE RESTRUCTURING AND RENTAL
ASSISTANCE
SUFFICIENCY
PLANS.—Notwithstanding
paragraph (1), the owner of the project may request,
and the Secretary may consider, mortgage restruc-
turing and rental assistance sufficiency plans to fa-
cilitate sales or transfers of properties under this sub-
title, subject to an approved plan of action under the
Emergency Low Income Housing Preservation Act of
1987 (12 U.S.C. 1715l note) or the Low-Income Hous-
ing Preservation and Resident Homeownership Act of
1990 (12 U.S.C. 4101 et seq.), which plans shall re-
sult in a sale or transfer of those properties.’’; and
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(2) in the last sentence of section 512(2), by in-
serting ‘‘, but does include a project described in sec-
tion 524(e)(3)’’ after ‘‘section 524(e)’’.
(e) ADDITION OF SIGNIFICANT FEATURES.—Section
517 of the Multifamily Assisted Housing Reform and Af-
fordability Act of 1997 (42 U.S.C. 1437f note) is
amended—
(1) by striking subsection (c) (except that the
striking of such subsection may not be construed to
have any effect on the provisions of law amended by
such subsection, as such subsection was in effect before
the date of the enactment of this Act);
(2) in subsection (b)—
(A) in paragraph (7), by striking ‘‘(7)’’ and
inserting ‘‘(1)’’; and
(B) by adding at the end the following new
paragraph:
‘‘(2) ADDITION OF SIGNIFICANT FEATURES.—
‘‘(A) AUTHORITY.—An approved mortgage
restructuring and rental assistance sufficiency
plan may require the improvement of the project
by the addition of significant features that are
not necessary for rehabilitation to the standard
provided under paragraph (1), such as air con-
ditioning, an elevator, and additional commu-
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nity space. The Secretary shall establish guide-
lines regarding the inclusion of requirements re-
garding such additional significant features
under such plans.
‘‘(B) FUNDING.—Significant features added
pursuant to an approved mortgage restructuring
and rental assistance sufficiency plan may be
paid from the funding sources specified in the
first sentence of paragraph (1)(A).
‘‘(C) LIMITATION
ON
OWNER
CONTRIBU-
TION.—An owner of a project may not be re-
quired to contribute from non-project resources,
toward the cost of any additional significant fea-
tures required pursuant to this paragraph, more
than 25 percent of the amount of any assistance
received for the inclusion of such features.
‘‘(D) 
APPLICABILITY.—This 
paragraph
shall apply to all eligible multifamily housing
projects, except projects for which the Secretary
and the project owner executed a mortgage re-
structuring and rental assistance sufficiency
plan on or before the date of the enactment of the
Mark-to-Market Extension Act of 2001.’’; and
(3) by inserting after paragraph (6) of sub-
section (b) the following:
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‘‘(c) REHABILITATION NEEDS AND ADDITION OF SIG-
NIFICANT FEATURES.—’’.
(f) LOOK-BACK PROJECTS.—Section 512(2) of the
Multifamily Assisted Housing Reform and Affordability
Act of 1997 (42 U.S.C. 1437f note) is amended by adding
after the period at the end of the last sentence the following:
‘‘Notwithstanding any other provision of this title, the Sec-
retary may treat a project as an eligible multifamily hous-
ing project for purposes of this title if (I) the project is as-
sisted pursuant to a contract for project-based assistance
under section 8 of the United States Housing Act of 1937
renewed under section 524 of this Act, (II) the owner con-
sents to such treatment, and (III) the project met the re-
quirements of the first sentence of this paragraph for eligi-
bility as an eligible multifamily housing project before the
initial renewal of the contract under section 524.’’.
(g) SECOND MORTGAGES.—Section 517(a) of the Mul-
tifamily Assisted Housing Reform and Affordability Act of
1997 (42 U.S.C. 1437f note) is amended—
(1) in paragraph (1)(B), by striking ‘‘no more
than the’’ and inserting the following: ‘‘not more than
the greater of—
‘‘(i) the full or partial payment of
claim made under this subtitle; or
‘‘(ii) the’’; and
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(2) in paragraph (5), by inserting ‘‘of the second
mortgage, assign the second mortgage to the acquiring
organization or agency,’’ after ‘‘terms’’.
(h) EXEMPTIONS FROM RESTRUCTURING.—Section
514(h)(2) of the Multifamily Assisted Housing Reform and
Affordability Act of 1997 (42 U.S.C. 1437f note) is amended
by inserting before the semicolon the following: ‘‘, or refi-
nanced pursuant to section 811 of the American Home-
ownership and Economic Opportunity Act of 2000 (12
U.S.C. 1701q note)’’.
SEC. 613. CONSISTENCY OF RENT LEVELS UNDER EN-
HANCED VOUCHER ASSISTANCE AND RENT
RESTRUCTURINGS.
Subtitle A of the Multifamily Assisted Housing Reform
and Affordability Act of 1997 (42 U.S.C. 1437f note) is
amended by adding at the end the following new section:
‘‘SEC. 525. CONSISTENCY OF RENT LEVELS UNDER EN-
HANCED VOUCHER ASSISTANCE AND RENT
RESTRUCTURINGS.
‘‘(a) IN GENERAL.—The Secretary shall examine the
standards and procedures for determining and establishing
the rent standards described under subsection (b). Pursuant
to such examination, the Secretary shall establish proce-
dures and guidelines that are designed to ensure that the
amounts determined by the various rent standards for the
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same dwelling units are reasonably consistent and reflect
rents for comparable unassisted units in the same area as
such dwelling units.
‘‘(b) RENT STANDARDS.—The rent standards described
in this subsection are as follows:
‘‘(1) 
ENHANCED
VOUCHERS.—The 
payment
standard for enhanced voucher assistance under sec-
tion 8(t) of the United States Housing Act of 1937
(42 U.S.C. 1437f(t)).
‘‘(2) MARK-TO-MARKET.—The rents derived from
comparable properties, for purposes of section 514(g)
of this Act.
‘‘(3) CONTRACT
RENEWAL.—The comparable
market rents for the market area, for purposes of sec-
tion 524(a)(4) of this Act.’’.
SEC. 614. ELIGIBLE INCLUSIONS FOR RENEWAL RENTS OF
PARTIALLY ASSISTED BUILDINGS.
Section 524(a)(4)(C) of the Multifamily Assisted
Housing Reform and Affordability Act of 1997 (42 U.S.C.
1437f note) is amended by adding after the period at the
end the following: ‘‘Notwithstanding any other provision of
law, the Secretary shall include in such budget-based cost
increases costs relating to the project as a whole (including
costs incurred with respect to units not covered by the con-
tract for assistance), but only (I) if inclusion of such costs
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is requested by the owner or purchaser of the project, (II)
if inclusion of such costs will permit capital repairs to the
project or acquisition of the project by a nonprofit organiza-
tion, and (III) to the extent that inclusion of such costs
(or a portion thereof) complies with the requirement under
clause (ii).’’.
SEC. 615. ELIGIBILITY OF RESTRUCTURING PROJECTS FOR
MISCELLANEOUS HOUSING INSURANCE.
Section 223(a)(7) of the National Housing Act (12
U.S.C. 1715n(a)(7)) is amended—
(1) by striking ‘‘under this Act: Provided, That
the principal’’ and inserting the following: ‘‘under
this Act, or an existing mortgage held by the Sec-
retary that is subject to a mortgage restructuring and
rental assistance sufficiency plan pursuant to the
Multifamily Assisted Housing Reform and Afford-
ability Act of 1997 (42 U.S.C. 1437f note), provided
that—
‘‘(A) the principal’’;
(2) by striking ‘‘except that (A)’’ and inserting
‘‘except that (i)’’;
(3) by striking ‘‘(B)’’ and inserting ‘‘(ii)’’;
(4) by striking ‘‘(C)’’ and inserting ‘‘(iii)’’;
(5) by striking ‘‘(D)’’ and inserting ‘‘(iv)’’;
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(6) by striking ‘‘: Provided further, That a mort-
gage’’ and inserting the following ‘‘; and
‘‘(B) a mortgage’’;
(7) by striking ‘‘or’’ at the end; and
(8) by adding at the end the following new sub-
paragraph:
‘‘(C) a mortgage that is subject to a mort-
gage restructuring and rental assistance suffi-
ciency plan pursuant to the Multifamily Assisted
Housing Reform and Affordability Act of 1997
(42 U.S.C. 1437f note) and is refinanced under
this paragraph may have a term of not more
than 30 years; or’’.
SEC. 616. TECHNICAL CORRECTIONS.
(a) EXEMPTIONS FROM RESTRUCTURING.—
(1) IN GENERAL.—Section 514(h) of the Multi-
family Assisted Housing Reform and Affordability
Act of 1997 (42 U.S.C. 1437f note) is amended to
read as if the amendment made by section 531(c) of
Public Law 106–74 (113 Stat. 1116) were made to
‘‘Section 514(h)(1)’’ instead of ‘‘Section 514(h)’’.
(2) RETROACTIVE
EFFECT.—The amendment
made by paragraph (1) of this subsection is deemed
to have taken effect on the date of the enactment of
Public Law 106–74 (113 Stat. 1109).
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(b) OTHER.—The Multifamily Assisted Housing Re-
form and Affordability Act of 1997 (42 U.S.C. 1437f note)
is amended—
(1) in section 511(a)(12), by striking ‘‘this Act’’
and inserting ‘‘this title’’;
(2) in section 513, by striking ‘‘this Act’’ each
place such term appears in subsections (a)(2)(I) and
(b)(3) and inserting ‘‘this title’’;
(3) in section 514(f)(3)(B), by inserting ‘‘Hous-
ing’’ after ‘‘Multifamily’’;
(4) in section 515(c)(1)(B), by inserting ‘‘or’’
after the semicolon;
(5) in section 517(b)—
(A) in each of paragraphs (1) through (6),
by capitalizing the first letter of the first word
that follows the paragraph heading;
(B) in each of paragraphs (1) through (5),
by striking the semicolon at the end and insert-
ing a period; and
(C) in paragraph (6), by striking ‘‘; and’’
at the end and inserting a period;
(6) in section 520(b), by striking ‘‘Banking
and’’; and
(7) in section 573(d)(2), by striking ‘‘Banking
and’’.
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Subtitle B—Office of Multifamily
Housing Assistance Restructuring
SEC. 621. REAUTHORIZATION OF OFFICE AND EXTENSION
OF PROGRAM.
Section 579 of the Multifamily Assisted Housing Re-
form and Affordability Act of 1997 (42 U.S.C. 1437f note)
is amended—
(1) by striking subsection (a) and inserting the
following new subsection:
‘‘(a) REPEALS.—
‘‘(1) MARK-TO-MARKET
PROGRAM.—Subtitle A
(except for section 524) is repealed effective October 1,
2006.
‘‘(2) OMHAR.—Subtitle D (except for this sec-
tion) is repealed effective October 1, 2004.’’;
(2) in subsection (b), by striking ‘‘October 1,
2001’’ and inserting ‘‘October 1, 2006’’;
(3) in subsection (c), by striking ‘‘upon Sep-
tember 30, 2001’’ and inserting ‘‘at the end of Sep-
tember 30, 2004’’; and
(4) by striking subsection (d) and inserting the
following new subsection:
‘‘(d) TRANSFER OF AUTHORITY.—Effective upon the
repeal of subtitle D under subsection (a)(2) of this section,
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all authority and responsibilities to administer the program
under subtitle A are transferred to the Secretary.’’.
SEC. 622. APPOINTMENT OF DIRECTOR.
(a) IN GENERAL.—Section 572 of the Multifamily As-
sisted Housing Reform and Affordability Act of 1997 (42
U.S.C. 1437f note) is amended by striking subsection (a)
and inserting the following new subsection:
‘‘(a) APPOINTMENT.—The Office shall be under the
management of a Director, who shall be appointed by the
President from among individuals who are citizens of the
United States and have a demonstrated understanding of
financing and mortgage restructuring for affordable multi-
family housing.’’.
(b) APPLICABILITY.—The amendment made by sub-
section (a) shall apply to the first Director of the Office
of Multifamily Housing Assistance Restructuring of the De-
partment of Housing and Urban Development appointed
after the date of the enactment of this Act, and any such
Director appointed thereafter.
SEC. 623. VACANCY IN POSITION OF DIRECTOR.
(a) IN GENERAL.—Section 572 of the Multifamily As-
sisted Housing Reform and Affordability Act of 1997 (42
U.S.C. 1437f note) is amended by striking subsection (b)
and inserting the following new subsection:
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‘‘(b) VACANCY.—A vacancy in the position of Director
shall be filled by appointment in the manner provided
under subsection (a). The President shall make such an ap-
pointment not later than 60 days after such position first
becomes vacant.’’.
(b) APPLICABILITY.—The amendment made by sub-
section (a) shall apply to any vacancy in the position of
Director of the Office of Multifamily Housing Assistance
Restructuring of the Department of Housing and Urban
Development which occurs or exists after the date of the en-
actment of this Act.
SEC. 624. OVERSIGHT BY FEDERAL HOUSING COMMIS-
SIONER.
(a) IN GENERAL.—Section 578 of the Multifamily As-
sisted Housing Reform and Affordability Act of 1997 (42
U.S.C. 1437f note) is amended to read as follows:
‘‘SEC. 578. OVERSIGHT BY FEDERAL HOUSING COMMIS-
SIONER.
‘‘All authority and responsibilities assigned under this
subtitle to the Secretary shall be carried out through the
Assistant Secretary of the Department of Housing and
Urban Development who is the Federal Housing Commis-
sioner.’’.
(b) REPORT.—The second sentence of section 573(b) of
the Multifamily Assisted Housing Reform and Affordability
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Act of 1997 (42 U.S.C. 1437f note) is amended by striking
‘‘Secretary’’ and inserting ‘‘Assistant Secretary of the De-
partment of Housing and Urban Development who is the
Federal Housing Commissioner’’.
SEC. 625. LIMITATION ON SUBSEQUENT EMPLOYMENT.
Section 576 of the Multifamily Assisted Housing Re-
form and Affordability Act of 1997 (42 U.S.C. 1437f note)
is amended by striking ‘‘2-year period’’ and inserting ‘‘1-
year period’’.
Subtitle C—Miscellaneous Housing
Program Amendments
SEC. 631. EXTENSION OF CDBG PUBLIC SERVICES CAP EX-
CEPTION.
Section 105(a)(8) of the Housing and Community De-
velopment Act of 1974 (42 U.S.C. 5305(a)(8)) is amended
by striking ‘‘through 2001’’ and inserting ‘‘through 2003’’.
SEC. 632. USE OF SECTION 8 ENHANCED VOUCHERS FOR
PREPAYMENTS.
Section 8(t)(2) of the United States Housing Act of
1937 (42 U.S.C. 1437f(t)(2)) is amended by inserting after
‘‘insurance contract for the mortgage for such housing
project’’ the following: ‘‘(including any such mortgage pre-
payment during fiscal year 1996 or a fiscal year thereafter
or any insurance contract voluntary termination during
fiscal year 1996 or a fiscal year thereafter)’’.
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SEC. 633. PREPAYMENT AND REFINANCING OF LOANS FOR
SECTION 202 SUPPORTIVE HOUSING.
(a) IN GENERAL.—Section 811 of the American Home-
ownership and Economic Opportunity Act of 2000 (12
U.S.C. 1701q note) is amended by striking subsection (e).
(b) EFFECTIVENESS UPON DATE OF ENACTMENT.—
The amendment made by subsection (a) of this section shall
take effect upon the date of the enactment of this Act and
the provisions of section 811 of the American Homeowner-
ship and Economic Opportunity Act of 2000 (12 U.S.C.
1701q note), as amended by subsection (a) of this section,
shall apply as so amended upon such date of enactment,
notwithstanding—
(1) any authority of the Secretary of Housing
and Urban Development to issue regulations to imple-
ment or carry out the amendments made by sub-
section (a) of this section or the provisions of section
811 of the American Homeownership and Economic
Opportunity Act of 2000 (12 U.S.C. 1701q note); or
(2) any failure of the Secretary of Housing and
Urban Development to issue any such regulations au-
thorized.
SEC. 634. TECHNICAL CORRECTION.
(a) IN GENERAL.—Section 101(a) of Public Law 100–
77 (42 U.S.C. 11301 note) is amended to read as if the
amendment made by section 1 of Public Law 106–400 (114
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Stat. 1675) were made to ‘‘Section 101’’ instead of ‘‘Section
1’’.
(b) RETROACTIVE EFFECT.—The amendment made by
subsection (a) of this section is deemed to have taken effect
immediately after the enactment of Public Law 106–400
(114 Stat. 1675).
TITLE VII—MENTAL HEALTH
EQUITY
SEC. 701. SHORT TITLE.
This title may be cited as the ‘‘Mental Health Equi-
table Treatment Act of 2001’’.
SEC. 702. AMENDMENT TO THE EMPLOYEE RETIREMENT IN-
COME SECURITY ACT OF 1974.
(a) IN GENERAL.—Section 712 of the Employee Re-
tirement Income Security Act of 1974 (29 U.S.C. 1185a)
is amended to read as follows:
‘‘SEC. 712. MENTAL HEALTH PARITY.
‘‘(a) IN GENERAL.—In the case of a group health plan
(or health insurance coverage offered in connection with
such a plan) that provides both medical and surgical bene-
fits and mental health benefits, such plan or coverage shall
not impose any treatment limitations or financial require-
ments with respect to the coverage of benefits for mental
illnesses unless comparable treatment limitations or finan-
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cial requirements are imposed on medical and surgical ben-
efits.
‘‘(b) CONSTRUCTION.—
‘‘(1) IN GENERAL.—Nothing in this section shall
be construed as requiring a group health plan (or
health insurance coverage offered in connection with
such a plan) to provide any mental health benefits.
‘‘(2) 
MEDICAL
MANAGEMENT
OF
MENTAL
HEALTH BENEFITS.—Consistent with subsection (a),
nothing in this section shall be construed to prevent
the medical management of mental health benefits, in-
cluding through concurrent and retrospective utiliza-
tion review and utilization management practices,
preauthorization, and the application of medical ne-
cessity and appropriateness criteria applicable to be-
havioral health and the contracting and use of a net-
work of participating providers.
‘‘(3) NO
REQUIREMENT
OF
SPECIFIC
SERV-
ICES.—Nothing in this section shall be construed as
requiring a group health plan (or health insurance
coverage offered in connection with such a plan) to
provide coverage for specific mental health services,
except to the extent that the failure to cover such serv-
ices would result in a disparity between the coverage
of mental health and medical and surgical benefits.
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‘‘(c) SMALL EMPLOYER EXEMPTION.—
‘‘(1) IN GENERAL.—This section shall not apply
to any group health plan (and group health insurance
coverage offered in connection with a group health
plan) for any plan year of any employer who em-
ployed an average of at least 2 but not more than 50
employees on business days during the preceding cal-
endar year.
‘‘(2) APPLICATION OF CERTAIN RULES IN DETER-
MINATION OF EMPLOYER SIZE.—For purposes of this
subsection—
‘‘(A) APPLICATION OF AGGREGATION RULE
FOR
EMPLOYERS.—Rules similar to the rules
under subsections (b), (c), (m), and (o) of section
414 of the Internal Revenue Code of 1986 shall
apply for purposes of treating persons as a single
employer.
‘‘(B) EMPLOYERS
NOT
IN
EXISTENCE
IN
PRECEDING YEAR.—In the case of an employer
which was not in existence throughout the pre-
ceding calendar year, the determination of
whether such employer is a small employer shall
be based on the average number of employees
that it is reasonably expected such employer will
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employ on business days in the current calendar
year.
‘‘(C) PREDECESSORS.—Any reference in
this paragraph to an employer shall include a
reference to any predecessor of such employer.
‘‘(d) SEPARATE APPLICATION TO EACH OPTION OF-
FERED.—In the case of a group health plan that offers a
participant or beneficiary two or more benefit package op-
tions under the plan, the requirements of this section shall
be applied separately with respect to each such option.
‘‘(e) IN-NETWORK AND OUT-OF-NETWORK RULES.—In
the case of a plan or coverage option that provides in-net-
work mental health benefits, out-of-network mental health
benefits may be provided using treatment limitations or fi-
nancial requirements that are not comparable to the limita-
tions and requirements applied to medical and surgical
benefits if the plan or coverage provides such in-network
mental health benefits in accordance with subsection (a)
and provides reasonable access to in-network providers and
facilities.
‘‘(f) DEFINITIONS.—For purposes of this section—
‘‘(1) FINANCIAL REQUIREMENTS.—The term ‘fi-
nancial requirements’ includes deductibles, coinsur-
ance, co-payments, other cost sharing, and limitations
on the total amount that may be paid by a partici-
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pant or beneficiary with respect to benefits under the
plan or health insurance coverage and shall include
the application of annual and lifetime limits.
‘‘(2) MEDICAL
OR
SURGICAL
BENEFITS.—The
term ‘medical or surgical benefits’ means benefits
with respect to medical or surgical services, as defined
under the terms of the plan or coverage (as the case
may be), but does not include mental health benefits.
‘‘(3) MENTAL
HEALTH
BENEFITS.—The term
‘mental health benefits’ means benefits with respect to
services, as defined under the terms and conditions of
the plan or coverage (as the case may be), for all cat-
egories of mental health conditions listed in the Diag-
nostic and Statistical Manual of Mental Disorders,
Fourth Edition (DSM IV–TR), or the most recent
edition if different than the Fourth Edition, if such
services are included as part of an authorized treat-
ment plan that is in accordance with standard proto-
cols and such services meet the plan or issuer’s med-
ical necessity criteria. Such term does not include
benefits with respect to the treatment of substance
abuse or chemical dependency.
‘‘(4) 
TREATMENT
LIMITATIONS.—The 
term
‘treatment limitations’ means limitations on the fre-
quency of treatment, number of visits or days of cov-
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HR 3061 EAS
erage, or other similar limits on the duration or scope
of treatment under the plan or coverage.’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect on January 1, 2003 and shall
apply with respect to plan years beginning on or after such
date.
SEC. 703. AMENDMENT TO THE PUBLIC HEALTH SERVICE
ACT RELATING TO THE GROUP MARKET.
(a) IN GENERAL.—Section 2705 of the Public Health
Service Act (42 U.S.C. 300gg–5) is amended to read as fol-
lows:
‘‘SEC. 2705. MENTAL HEALTH PARITY.
‘‘(a) IN GENERAL.—In the case of a group health plan
(or health insurance coverage offered in connection with
such a plan) that provides both medical and surgical bene-
fits and mental health benefits, such plan or coverage shall
not impose any treatment limitations or financial require-
ments with respect to the coverage of benefits for mental
illnesses unless comparable treatment limitations or finan-
cial requirements are imposed on medical and surgical ben-
efits.
‘‘(b) CONSTRUCTION.—
‘‘(1) IN GENERAL.—Nothing in this section shall
be construed as requiring a group health plan (or