U.S.C. App. 467) is amended by adding at the end the
following new subsection:
‘‘(d) Except during any period in which a declaration
of national emergency is in effect under section 3—
‘‘(1) the President may not appoint a person as
a member of a civilian local board, civilian appeal
board, or similar local agency of the Selective Serv-
ice System; and
‘‘(2) any such board established under section
10(b)(3) may not meet.’’.
(c) REPORT ON STANDBY REGISTRATION PROGRAM
FOR USE DURING NATIONAL EMERGENCIES.—Not later
than 150 days after the date of the enactment of this Act,
the Director of the Selective Service System shall submit
to Congress a report detailing a standby emergency man-
power mobilization program to be used by the Selective
Service System during periods in which a declaration of
national emergency is in effect for the registration of per-
sons who would be subject to registration under section
3 of the Military Selective Service Act (50 U.S.C. App.
453) during such a period. The report shall include an
estimate of the cost to implement and operate the standby
program and an evaluation of the feasibility of using exist-
ing and emerging information systems available to the
Government to improve the effectiveness of any registra-
tion requirements.
SEC. 212. END OF TAXPAYER SUPPORT FOR DEFENSE IN-
DUSTRY MERGERS.
Expenses incurred by a defense contractor related to
a corporate merger may not be considered to be an allow-
able cost under a Department of Defense contract, and
no funds appropriated to the Department of Defense may
be used to reimburse a contractor for any such expense.
SEC. 213. REDUCTION OF UNITED STATES SUPPORT FOR
WEAPONS SALES ABROAD BY ELIMINATING
FUTURE ASSISTANCE UNDER THE FOREIGN
MILITARY FINANCING PROGRAM.
After the date of the enactment of this Act, no new
loan, grant, or other assistance may be provided under the
‘‘Foreign Military Financing Program’’ account under
section 23 of the Arms Export Control Act (22 U.S.C.
2763).
SEC. 214. LIMITATION ON PROPOSED INCREASES FOR NA-
TIONAL MISSILE DEFENSE TO FISCAL YEAR
2000 LEVELS.
The amount appropriated for the National Missile
Defense program of the Department of Defense for any
fiscal year may not exceed the amount appropriated for
that program for fiscal year 2000, adjusted for inflation.
SEC. 215. REDUCTION OF CENTRAL INTELLIGENCE AGENCY
BUDGET BY 10 PERCENT.
The total amount obligated for programs and activi-
ties of the Central Intelligence Agency for fiscal year 2001
may not exceed 90 percent of the total amount obligated
for programs and activities of the Central Intelligence
Agency for fiscal year 2000.
TITLE III—REDUCTION AND RE-
FORM OF ANTIENVIRONMEN
TAL SPENDING
Subtitle A—Program Terminations
and Fees
SEC. 301. NUCLEAR ENERGY RESEARCH INITIATIVE.
The Department of Energy shall not obligate any fur-
ther funding for the Nuclear Energy Research Initiative.
SEC. 302. NATIONAL IGNITION FACILITY.
The Department of Energy shall not obligate any fur-
ther funding for the National Ignition Facility.
SEC. 303. TOKAMAK FUSION REACTORS.
The Department of Energy shall not obligate any fur-
ther funding for Tokamak fusion reactors.
SEC. 304. DIESEL ENGINE RESEARCH.
The Department of Energy shall not obligate any fur-
ther funding for research on diesel engines for cars and
light trucks.
SEC. 305. NUCLEAR WASTE FUND FEE.
(a) FEE ADJUSTMENT.—Section 302(a)(2) of the
Nuclear Waste Policy Act of 1982 is amended by adding
at the end the following new sentence: ‘‘The Secretary
shall adjust the fee annually for inflation.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect 90 days after the date of
enactment of this section.
Subtitle B—Mining Provisions
SEC. 311. DEFINITIONS.
For purposes of subtitle:
(1) The term ‘‘locatable mineral’’ means any
mineral not subject to disposition under any of the
following:
(A) The Mineral Leasing Act (30 U.S.C.
181 et seq.).
(B) The Geothermal Steam Act of 1970
(30 U.S.C. 100 et seq.).
(C) The Act of July 31, 1947, commonly
known as the Materials Act of 1947 (30 U.S.C.
601 et seq.).
(D) The Mineral Leasing for Acquired
Lands Act (30 U.S.C. 351 et seq.).
(2) The term ‘‘mineral activities’’ means any
activity for, related to or incidental to mineral explo-
ration, mining, beneficiation and processing activi-
ties for any locatable mineral, including access.
When used with respect to this term:
(A) The term ‘‘exploration’’ means those
techniques employed to locate the presence of a
locatable mineral deposit and to establish its
nature, position, size, shape, grade and value.
(B) The term ‘‘mining’’ means the proc-
esses employed for the extraction of a locatable
mineral from the earth.
(C) The term ‘‘beneficiation’’ means the
crushing and grinding of locatable mineral ore
and such processes as are employed to free the
mineral from other constituents, including but
not necessarily limited to, physical and chemical
separation techniques.
(D) The term ‘‘processing’’ means proc-
esses downstream of beneficiation employed to
prepare locatable mineral ore into the final
marketable product, including but not limited
to, smelting and electrolytic refining.
(3) The term ‘‘mining claim’’ means a claim for
the purposes of mineral activities.
(4) The term ‘‘net smelter return’’ shall have
the same meaning as the term defined in section
613(c)(1) of the Internal Revenue Code.
(5) The term ‘‘Secretary’’ means the Secretary
of the Interior acting through the Director of the
Minerals Management Service.
(6) The term ‘‘substantial underreporting’’
means the difference between the royalty on the
value of the production which should have been re-
ported and the royalty on the value of the produc-
tion which was reported, if the value which should
have been reported is greater than the value which
was reported. An underreporting constitutes a ‘‘sub-
stantial underreporting’’ if such difference exceeds
10 percent of the royalty on the value of production
which should have been reported.
SEC. 312. ROYALTIES.
(a) RESERVATION OF ROYALTY.—Production of all
locatable minerals from any mining claim located or con-
verted under the general mining laws, or mineral con-
centrates or products derived from locatable minerals from
any mining claim located or converted under the general
mining laws, as the case may be, shall be subject to a
royalty of 8 percent of the net smelter return from such
production. The claim holder and any operator to whom
the claim holder has assigned the obligation to make roy-
alty payments under the claim and any person who con-
rectly involved in developing, producing, processing, trans-
porting, purchasing, or selling locatable minerals, con-
centrates, or products derived therefrom, subject to this
Act, through the point of royalty computation shall estab-
lish and maintain any records, make any reports, and pro-
vide any information that the Secretary may reasonably
require for the purposes of implementing this section or
determining compliance with rules or orders under this
section. Such records shall include, but not be limited to,
periodic reports, records, documents, and other data. Such
reports may also include, but not be limited to, pertinent
technical and financial data relating to the quantity, qual-
ity, composition volume, weight, and assay of all minerals
extracted from the mining claim. Upon the request of any
officer or employee duly designated by the Secretary or
any State conducting an audit or investigation pursuant
to this section, the appropriate records, reports, or infor-
mation which may be required by this section shall be
made available for inspection and duplication by such offi-
cer or employee or State.
(2) Records required by the Secretary under this sec-
tion shall be maintained for 6 years after cessation of all
mining activity at the claim concerned unless the Sec-
retary notifies the operator that he or she has initiated
an audit or investigation involving such records and that
such records must be maintained for a longer period. In
any case when an audit or investigation is underway,
records shall be maintained until the Secretary releases
the operator of the obligation to maintain such records.
(d) AUDITS.—The Secretary is authorized to conduct
such audits of all claim holders, operators, transporters,
purchasers, processors, or other persons directly or indi-
rectly involved in the production or sales of minerals cov-
ered by this Act, as the Secretary deems necessary for the
purposes of ensuring compliance with the requirements of
this section. For purposes of performing such audits, the
Secretary shall, at reasonable times and upon request,
have access to, and may copy, all books, papers and other
documents that relate to compliance with any provision
of this section by any person.
(e) COOPERATIVE AGREEMENTS.—(1) The Secretary
is authorized to enter into cooperative agreements with the
Secretary of Agriculture to share information concerning
the royalty management of locatable minerals, con-
centrates, or products derived therefrom, to carry out in-
spection, auditing, investigation, or enforcement (not in-
cluding the collection of royalties, civil or criminal pen-
alties, or other payments) activities under this section in
cooperation with the Secretary, and to carry out any other
activity described in this section.
(2) Except as provided in paragraph (4)(A) of this
subsection (relating to trade secrets), and pursuant to a
cooperative agreement, the Secretary of Agriculture shall,
upon request, have access to all royalty accounting infor-
mation in the possession of the Secretary respecting the
production, removal, or sale of locatable minerals, con-
centrates, or products derived therefrom from claims on
lands open to location under the general mining laws.
(3) Trade secrets, proprietary, and other confidential
information shall be made available by the Secretary pur-
suant to a cooperative agreement under this subsection to
the Secretary of Agriculture upon request only if—
(A) the Secretary of Agriculture consents in
writing to restrict the dissemination of the informa-
tion to those who are directly involved in an audit
or investigation under this section and who have a
need to know;
(B) the Secretary of Agriculture accepts liabil-
ity for wrongful disclosure; and
(C) the Secretary of Agriculture demonstrates
that such information is essential to the conduct of
an audit or investigation under this subsection.
(f) INTEREST AND SUBSTANTIAL UNDERREPORTING
ASSESSMENTS.—(1) In the case of mining claims where
royalty payments are not received by the Secretary on the
date that such payments are due, the Secretary shall
charge interest on such underpayments at the same inter-
est rate as is applicable under section 6621(a)(2) of the
Internal Revenue Code of 1986. In the case of an under-
payment, interest shall be computed and charged only on
the amount of the deficiency and not on the total amount.
(2) If there is any underreporting of royalty owed on
production from a claim for any production month by any
person liable for royalty payments under this section, the
Secretary may assess a penalty of 10 percent of the
amount of that underreporting.
(3) If there is a substantial underreporting of royalty
owed on production from a claim for any production
month by any person responsible for paying the royalty,
the Secretary may assess a penalty of 10 percent of the
amount of that underreporting.
(4) The Secretary shall not impose the assessment
provided in paragraph (2) or (3) of this subsection if the
person liable for royalty payments under this section cor-
rects the underreporting before the date such person re-
ceives notice from the Secretary that an underreporting
may have occurred, or before 90 days after the date of
the enactment of this section, whichever is later.
(5) The Secretary shall waive any portion of an as-
sessment under paragraph (2) or (3) of this subsection
attributable to that portion of the underreporting for
which the person responsible for paying the royalty dem-
onstrates that—
(A) such person had written authorization from
the Secretary to report royalty on the value of the
production on basis on which it was reported;
(B) such person had substantial authority for
reporting royalty on the value of the production on
the basis on which it was reported;
(C) such person previously had notified the Sec-
retary, in such manner as the Secretary may by rule
prescribe, of relevant reasons or facts affecting the
royalty treatment of specific production which led to
the underreporting; or
(D) such person meets any other exception
which the Secretary may, by rule, establish.
(6) All penalties collected under this subsection shall
be deposited in the Treasury.
(g) EXPANDED ROYALTY OBLIGATIONS.—Each per-
son liable for royalty payments under this section shall
be jointly and severally liable for royalty on all locatable
minerals, concentrates, or products derived therefrom lost
or wasted from a mining claim located or converted under
this section when such loss or waste is due to negligence
on the part of any person or due to the failure to comply
with any rule, regulation, or order issued under this sec-
tion.
(h) EXCEPTION.—No royalty shall be payable under
subsection (a) with respect to minerals processed at a fa-
cility by the same person or entity which extracted the
minerals if an urban development action grant has been
made under section 119 of the Housing and Community
Development Act of 1974 with respect to any portion of
such facility.
(i) EFFECTIVE DATE.—The royalty under this sec-
tion shall take effect with respect to the production of
locatable minerals after the enactment of this Act, but any
royalty payments attributable to production during the
first 12 calendar months after the enactment of this sec-
tion shall be payable at the expiration of such 12-month
period.
SEC. 313. LIMITATION ON PATENT ISSUANCE.
(a) MINING CLAIMS.—After September 27, 2000, no
patent shall be issued by the United States for any mining
claim located under the general mining laws or under this
Act unless the Secretary determines that, for the claim
concerned—
(1) a patent application was filed with the Sec-
retary on or before September 27, 2000; and
(2) all requirements established under sections
2325 and 2326 of the Revised Statutes (30 U.S.C.
29 and 30) for vein or lode claims and sections
2329, 2330, 2331, and 2333 of the Revised Statutes
(30 U.S.C. 35, 36, and 37) for placer claims were
fully complied with by that date.
If the Secretary makes the determinations referred to in
paragraphs (1) and (2) for any mining claim, the holder
of the claim shall be entitled to the issuance of a patent
in the same manner and degree to which such claim holder
would have been entitled to prior to the enactment of this
Act, unless and until such determinations are withdrawn
or invalidated by the Secretary or by a court of the United
States.
(b) MILL SITES.—After September 27, 2000, no pat-
ent shall be issued by the United States for any mill site
claim located under the general mining laws unless the
Secretary determines that for the mill site concerned—
(1) a patent application for such land was filed
with the Secretary on or before September 27, 2000;
and
(2) all requirements applicable to such patent
application were fully complied with by that date.
If the Secretary makes the determinations referred to in
paragraphs (1) and (2) for any mill site claim, the holder
which a fee is required to be paid under section 2511(e)(2)
of the Energy Policy Act of 1992 (Public Law 102–486;
106 Stat. 3111; 30 U.S.C. 242).
(d) CLAIM MAINTENANCE FEES PAYABLE UNDER
1993 ACT.—The claim maintenance fees payable under
this section for any period with respect to any claim shall
be reduced by the amount of the claim maintenance fees
paid under section 10101 of the Omnibus Budget Rec-
onciliation Act of 1993 with respect to that claim and with
respect to the same period.
(e) WAIVER.—(1) The claim maintenance fee re-
quired under this section may be waived for a claim holder
who certifies in writing to the Secretary that on the date
the payment was due, the claim holder and all related par-
ties held not more than 10 mining claims on lands open
to location. Such certification shall be made on or before
the date on which payment is due.
(2) For purposes of paragraph (1), with respect to
any claim holder, the term ‘‘related party’’ means each
of the following:
(A) The spouse and dependent children (as de-
fined in section 152 of the Internal Revenue Code of
1986), of the claim holder.
(B) Any affiliate of the claim holder.
(f) CO-OWNERSHIP.—Upon the failure of any one or
more of several co-owners to contribute such co-owner or
owners’ portion of the fee under this section, any co-owner
who has paid such fee may, after the payment due date,
give the delinquent co-owner or owners notice of such fail-
ure in writing (or by publication in the newspaper nearest
the claim for at least once a week for at least 90 days).
If at the expiration of 90 days after such notice in writing
or by publication, any delinquent co-owner fails or refuses
to contribute his portion, his interest in the claim shall
become the property of the co-owners who have paid the
required fee.
(g) CREDIT AGAINST ROYALTY.—The amount of the
annual claim maintenance fee required to be paid under
this section for any claim for any period shall be credited
against the amount of royalty required to be paid under
section 312 for the same period with respect to that claim.
(h) PURCHASING POWER ADJUSTMENT.—The Sec-
retary shall adjust all dollar amounts established in this
section for changes in the purchasing power of the dollar
every 10 years following the date of enactment of this sec-
tion, employing the Consumer Price Index for all urban
consumers published by the Department of Labor as the
basis for adjustment, and rounding according to the ad-
justment process of conditions of the Federal Civil Pen-
alties Inflation Adjustment Act of 1990 (104 Stat. 890).
SEC. 315. SAVINGS CLAUSE.
Nothing in sections 312, 313, or 314 shall be con-
strued as repealing or modifying any Federal law, regula-
tion, order, or land use plan, in effect prior to the effective
date of such section, that prohibits or restricts the applica-
tion of the general mining laws, including such laws that
provide for special management criteria for operations
under the general mining laws as in effect prior to the
effective date of such section, to the extent such laws pro-
vide environmental protection greater than required under
the general mining laws.
TITLE IV—AMENDMENTS OF IN-
TERNAL REVENUE CODE OF
1986
SEC. 401. REPEAL OF EXCLUSION OF CERTAIN INCOME OF
FOREIGN SALES CORPORATIONS.
(a) IN GENERAL.—Section 921 of the Internal Rev-
enue Code of 1986 (relating to exempt foreign trade in-
come excluded from gross income) is amended by adding
at the end the following new subsection:
‘‘(e) TERMINATION.—This subpart shall not apply to
any taxable year beginning after December 31, 2000.’’
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to taxable years beginning after
December 31, 2000.
SEC. 402. DENIAL OF DEDUCTION FOR PAYMENTS OF EX-
CESSIVE COMPENSATION.
(a) IN GENERAL.—Section 162 of the Internal Rev-
enue Code of 1986 (relating to deduction for trade or busi-
ness expenses) is amended by inserting after subsection
(h) the following new subsection:
‘‘(i) EXCESSIVE COMPENSATION.—
‘‘(1) IN GENERAL.—No deduction shall be al-
lowed under this chapter for any excessive com-
pensation with respect to any full-time employee.
‘‘(2) EXCESSIVE
COMPENSATION.—For pur-
poses of this subsection, the term ‘excessive com-
pensation’ means, with respect to any employee, the
amount by which—
‘‘(A) the compensation for services per-
formed by such employee during the taxable
year, exceeds
‘‘(B) an amount equal to 25 times the low-
est compensation for services performed by any
other full-time employee during such taxable
year.
‘‘(3) DEFINITIONS AND SPECIAL RULES.—For
purposes of this subsection—
‘‘(A) COMPENSATION.—
‘‘(i) IN
GENERAL.—The term ‘com-
pensation’ means salary, wages, and bo-
nuses.
‘‘(ii) PART-YEAR EMPLOYEES.—In the
case of any part-year employee, the com-
pensation of the employee shall be com-
puted on an annualized basis.
‘‘(B) EMPLOYER.—All persons treated as a
single employer under subsection (a) or (b) of
section 52 or subsection (m) or (o) of section
414 shall be treated as 1 employer.’’
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to taxable years beginning after
the date of the enactment of this Act.
SEC. 403. DISALLOWANCE OF DEDUCTIONS FOR ADVER-
TISING AND PROMOTIONAL EXPENSES RE-
LATING TO TOBACCO PRODUCT USE.
(a) IN GENERAL.—Part IX of subchapter B of chap-
ter 1 of subtitle A of the Internal Revenue Code of 1986
(relating to items not deductible) is amended by adding
at the end the following new section:
‘‘SEC. 280I. DISALLOWANCE OF DEDUCTION FOR TOBACCO
ADVERTISING 
AND 
PROMOTIONAL 
EX-
PENSES.
No deduction shall be allowed under this chapter for
expenses relating to advertising or promoting cigars, ciga-
rettes, smokeless tobacco, pipe tobacco, or any similar to-
bacco product. For purposes of this section, any term used
in this section which is also used in section 5702 shall
have the same meaning given such term by section 5702.’’
(b) CONFORMING AMENDMENT.—The table of sec-
tions for such part IX is amended by adding after the
item relating to section 280H the following new item:
‘‘Sec. 280I. Disallowance of deduction for tobacco advertising
and promotion expenses.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years ending after De-
cember 31, 2000.
SEC. 404. SOURCE OF INCOME FROM CERTAIN SALES OF IN-
VENTORY PROPERTY.
(a) GENERAL RULE.—Subsection (b) of section 865
of the Internal Revenue Code of 1986 (relating to excep-
tion for inventory property) is amended to read as follows:
‘‘(b) EXCEPTION FOR INVENTORY PROPERTY.—
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in this subsection, income derived from the
sale of inventory property shall be sourced under the