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SECTION 1. SHORT TITLE.

    This Act may be cited as the ``America's Law Enforcement and Mental 
Health Project''.

SEC. 2. MENTAL HEALTH DIVERSION COURTS.

    (a) Amendment.--Part V of title I of the Omnibus Crime Control and 
Safe Streets Act of 1968 is amended to read as follows:

                ``PART V--MENTAL HEALTH DIVERSION COURTS

``SEC. 2201. GRANT AUTHORITY.

    ``The Attorney General may make grants to States, State courts, 
local courts, units of local government, and Indian tribal governments, 
acting directly or through agreements with other public or nonprofit 
entities, for 25 programs that involve--
            ``(1) continuing judicial supervision, including periodic 
        review at least every 45 days, over preliminarily qualified 
        offenders with mental illness, mental retardation, or co-
        occurring mental illness and substance abuse disorders who are 
        charged with nonviolent misdemeanors, for a period not to 
        exceed 1 year; and
            ``(2) the integrated administration of services, which 
        includes--
                    ``(A) specialized training of law enforcement and 
                judicial personnel to identify and address the unique 
                needs of a mentally ill or mentally retarded offender;
                    ``(B) voluntary diversion into outpatient or 
                inpatient mental health treatment that carries with it 
                the possibility of prosecution of the original criminal 
                charge if the mentally ill or mentally retarded 
                defendant is noncompliant with program requirements;
                    ``(C) centralized case management involving the 
                consolidation of all of a mentally ill or mentally 
                retarded defendant's misdemeanor cases, including 
                violations of misdemeanor probation, and the 
                coordination of all treatment plans of mental health 
                and social service providers; and
                    ``(D) life skills training, such as housing 
                placement, vocational training, education, job 
                placement, health care, and relapse prevention for each 
                participant who requires such services.

``SEC. 2202. DEFINITION.

    ``In this part the term `preliminarily qualified offender with 
mental illness, mental retardation, or co-occurring mental and 
substance abuse disorders' means a person who--
            ``(1)(A) previously or currently has been diagnosed by a 
        qualified mental health professional as having a mental 
        illness, mental retardation, or co-occurring mental illness and 
        substance abuse disorders; or
            ``(B) manifests obvious signs of mental illness, mental 
        retardation, or co-occurring mental illness and substance abuse 
        disorders during arrest or confinement or before any court; and
            ``(2) is deemed eligible for diversion by designated 
        judges.

``SEC. 2203. ADMINISTRATION.

    ``(a) Consultation.--The Attorney General shall consult with the 
Secretary of Health and Human Services and any other appropriate 
officials in carrying out this part.
    ``(b) Use of Components.--The Attorney General may utilize any 
component or components of the Department of Justice in carrying out 
this part.
    ``(c) Regulatory Authority.--The Attorney General shall issue 
regulations and guidelines necessary to carry out this part which 
include, but are not limited to, the methodologies and outcome measures 
proposed for evaluating each applicant program.
    ``(d) Applications.--In addition to any other requirements that may 
be specified by the Attorney General, an application for a grant under 
this part shall--
            ``(1) include a long-term strategy and detailed 
        implementation plan;
            ``(2) explain the applicant's inability to fund the program 
        adequately without Federal assistance;
            ``(3) certify that the Federal support provided will be 
        used to supplement, and not supplant, State, Indian tribal, and 
        local sources of funding that would otherwise be available;
            ``(4) identify related governmental or community 
        initiatives which complement or will be coordinated with the 
        proposal;
            ``(5) certify that there has been appropriate consultation 
        with all affected agencies and that there will be appropriate 
        coordination with all affected agencies in the implementation 
        of the program;
            ``(6) certify that participating offenders will be 
        supervised by one or more designated judges with responsibility 
        for the mental health diversion court program;
            ``(7) specify plans for obtaining necessary support and 
        continuing the proposed program following the conclusion of 
        Federal support; and
            ``(8) describe the methodology and outcome measures that 
        will be used in evaluating the program.

``SEC. 2204. APPLICATIONS.

    ``To request funds under this part, the chief executive or the 
chief justice of a State or the chief executive or chief judge of a 
unit of local government or Indian tribal government shall submit an 
application to the Attorney General in such form and containing such 
information as the Attorney General may reasonably require.

``SEC. 2205. FEDERAL SHARE.

    ``The Federal share of a grant made under this part may not exceed 
75 percent of the total costs of the program described in the 
application submitted under section 2205 for the fiscal year for which 
the program receives assistance under this part, unless the Attorney 
General waives, wholly or in part, the requirement of a matching 
contribution under this section. The use of the Federal share of a 
grant made under this part shall be limited to new expenses 
necessitated by the proposed diversion program, including the 
development of treatment services and the hiring and training of 
personnel. In-kind contributions may constitute a portion of the non-
Federal share of a grant.

``SEC. 2206. GEOGRAPHIC DISTRIBUTION.

    ``The Attorney General shall ensure that, to the extent 
practicable, an equitable geographic distribution of grant awards is 
made that considers the special needs of rural communities, Indian 
tribes, and Alaska Natives.

``SEC. 2207. REPORT.

    ``A State, Indian tribal government, or unit of local government 
that receives funds under this part during a fiscal year shall submit 
to the Attorney General a report in March of the following year 
regarding the effectiveness of this part.

``SEC. 2208. TECHNICAL ASSISTANCE, TRAINING, AND EVALUATION.

    ``(a) Technical Assistance and Training.--The Attorney General may 
provide technical assistance and training in furtherance of the 
purposes of this part.
    ``(b) Evaluations.--In addition to any evaluation requirements that 
may be prescribed for grantees, the Attorney General may carry out or 
make arrangements for evaluations of programs that receive support 
under this part.
    ``(c) Administration.--The technical assistance, training, and 
evaluations authorized by this section may be carried out directly by 
the Attorney General, in collaboration with the Secretary of Health and 
Human Services, or through grants, contracts, or other cooperative 
arrangements with other entities.''.
    (b) Technical Amendment.--The table of contents of title I of the 
Omnibus Crime Control and Safe Streets Act of 1968 (42 U.S.C. 3711 et 
seq.), is amended by inserting after part U the following:

                ``Part V--Mental Health Diversion Courts

``Sec. 2201. Grant authority.
``Sec. 2202. Definition.
``Sec. 2203. Administration.
``Sec. 2204. Applications.
``Sec. 2205. Federal share.
``Sec. 2206. Geographic distribution.
``Sec. 2207. Report.
``Sec. 2208. Technical assistance, training, and evaluation.''.
    (c) Authorization of Appropriations.--Section 1001(a) of title I of 
the Omnibus Crime Control and Safe Streets Act of 1968 (42 U.S.C. 
3793(a)), is amended by inserting after paragraph (19) the following:
    ``(20) There are authorized to be appropriated to carry out part V, 
$2,000,000 for each of fiscal years 2000 through 2004.''.
America's Law Enforcement and Mental Health Project - Amends the Omnibus Crime Control and Safe Streets Act of 1968 to authorize the Attorney General to make grants to States, State courts, local courts, units of local government, and Indian tribal governments, acting directly or through agreements with other public or nonprofit entities, for 25 programs that involve: (1) continuing judicial supervision, including periodic review at least every 45 days, over preliminarily qualified offenders with mental illness, mental retardation, or co-occurring mental illness and substance abuse disorders who are charged with non-violent misdemeanors, for a period not to exceed one year; and (2) the integrated administration of services, which includes specialized training of law enforcement and judicial personnel to identify and address the unique needs of a mentally ill or mentally retarded offender, voluntary diversion into outpatient or inpatient mental health treatment that carries with it the possibility of prosecution of the original criminal charge if the mentally ill or mentally retarded defendant is noncompliant with program requirements, centralized case management involving the consolidation of all of a mentally ill or mentally retarded defendant's misdemeanor cases (including violations of misdemeanor probation) and the coordination of all treatment plans of mental health and social service providers, and life skills training. 
Defines "preliminarily qualified offender with mental illness, mental retardation, or co-occurring mental and substance abuse disorders" to mean a person who: (1) previously or currently has been diagnosed by a qualified mental health professional as having a mental illness, mental retardation, or co-occurring mental and substance abuse disorders or who manifests obvious signs of mental illness, mental retardation, or co-occurring mental and substance abuse disorders during arrest or confinement or before any court; and (2) is deemed eligible for diversion by designated judges. 
Directs the Attorney General to issue regulations and guidelines necessary to carry out this Act, including the methodologies and outcome measures proposed for evaluating each applicant program. 
Sets forth provisions regarding application requirements, the Federal cost share (75 percent), geographic distribution of grants, reporting requirements, and technical assistance, training, and evaluation.  Authorizes appropriations.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Iraq Congressional Oversight 
Enhancement Act''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) On October 16, 2002, the Authorization for Use of 
        Military Force Against Iraq Resolution of 2002 (Public Law 107-
        243) was enacted into law.
            (2) On March 19, 2003, the President, pursuant to the 
        authorities provided to the President by Public Law 107-243, 
        committed United States Armed Forces to combat operations in 
        Iraq.
            (3) On April 9, 2003, Saddam Hussein's Ba'athist regime 
        fell to Coalition Forces.
            (4) On April 16, 2003, the Emergency Wartime Supplemental 
        Appropriations Act, 2003 (Public Law 108-11) was enacted into 
        law, which included $2,500,000,000 for the relief and 
        reconstruction of Iraq.
            (5) On May 12, 2003, the Coalition Provisional Authority 
        (CPA) subsumed the Organization for Reconstruction and 
        Humanitarian Assistance (ORHA), and citing United Nations 
        Security Council Resolution 1483 (2003) and the laws of war, 
        vested itself with executive, legislative, and judicial 
        authority over the Iraqi government until such time as the 
        Iraqi government gained its sovereignty.
            (6) On November 6, 2003, the Emergency Supplemental 
        Appropriations Act for Defense and for the Reconstruction of 
        Iraq and Afghanistan, 2004 (Public Law 108-106) was enacted 
        into law, which included an additional $18,400,000,000 for the 
        relief and reconstruction of Iraq.
            (7) On June 28, 2004, the new Iraqi government gained its 
        sovereignty.
            (8) On January 30, 2005, the Iraqi people successfully 
        elected their first interim National Assembly.
            (9) On March 16, 2005, the 275-member interim Iraqi 
        National Assembly convened to appoint an interim national 
        government and to begin the drafting of a constitution.
            (10) On September 18, 2005, the interim Iraqi National 
        Assembly completed negotiations on the draft constitution.
            (11) On October 15, 2005, the Iraqi people approved the 
        draft constitution by a national referendum.
            (12) On November 30, 2005, the President, through the 
        National Security Council, issued the National Strategy for 
        Victory in Iraq.
            (13) On December 15, 2005, the people of Iraq voted to 
        elect the first permanent National Assembly in accordance with 
        the Constitution of the Republic of Iraq.
            (14) On March 16, 2006, the newly-elected National Assembly 
        convened for their first session.
            (15) On May 20, 2006, the Iraqi Prime Minister-designee 
        named a cabinet, except for the posts of Minister of Defense 
        and Minister of Interior, and the Prime Minister-designee and 
        the cabinet received a vote of confidence from the National 
        Assembly.
            (16) On June 7, 2006, Iraq's National Assembly approved the 
        individuals that the Iraqi Prime Minister nominated for 
        Minister of Defense, Minister of Interior, and National 
        Security Advisor, completing the formation of Iraq's first 
        permanent democratic government.

SEC. 3. STATEMENTS OF POLICY.

    Congress makes the following statements of policy:
            (1) Congress remains supportive of and inspired by the 
        service and sacrifice made by and dedication and commitment to 
        a democratic, stable, and prosperous Iraq displayed by members 
        of the United States Armed Forces and civilian personnel in 
        Iraq and by personnel serving world-wide in support of 
        Operation Iraqi Freedom.
            (2) Congress remains supportive of and inspired by the 
        service and sacrifice made by and dedication and commitment to 
        a democratic, stable, and prosperous Iraq displayed by the 
        military and civilian personnel of Coalition countries serving 
        in support of Operation Iraqi Freedom, and Iraqi patriots 
        working toward a better future for their country and the 
        children of Iraq.
            (3) Congress recognizes the complex and interdependent 
        nature of the challenges associated with the political, 
        security, infrastructure, and economic development of and 
        governance capacity building at and between the national, 
        national capital city, regional, provincial, provincial capital 
        city, and strategic municipal levels of government within Iraq.
            (4) Congress recognizes the achievements to date made by 
        the United States Armed Forces, Coalition Forces, Iraqi 
        Security Forces, and civilian personnel toward the political, 
        security, infrastructure, and economic development of Iraq.
            (5) Congress recognizes the issuance of the President's 
        National Strategy for Victory in Iraq on November 30, 2005.
            (6) Congress supports the formation of a democratic, 
        pluralistic, federal, and united Government of Iraq.
            (7) Congress urges elected Iraqis to maintain their 
        commitment to and preserve a national unity government.
            (8) Congress remains deeply concerned about insurgent 
        attacks and threats against United States Armed Forces, 
        Coalition Forces, Iraqi Security Forces, and civilians in Iraq.
            (9) Congress is concerned about the increase of ethnic and 
        sectarian violence in Iraq following the February 22, 2006, 
        bombing of the Askariya mosque in Samarra, Iraq, and about 
        continued ethnic and sectarian tensions across Iraq and within 
        its cities.
            (10) Congress is concerned about the increasing power that 
        unauthorized politically-aligned militias wield in Iraq, their 
        destabilizing effect on security in Iraq, and the challenges 
        they present to the development of professional Iraqi Security 
        Forces.
            (11) Congress urges the Government of Iraq to continue to 
        pursue policies to promote the development of--
                    (A) a market-based economy in Iraq that increases 
                private-sector employment opportunities for Iraqi 
                workers;
                    (B) private-sector investment opportunities for 
                domestic and international investors; and
                    (C) a government budget process that reflects an 
                appropriate level of investment in the development of 
                and the continued operations and maintenance for Iraq's 
                national infrastructure.
            (12) Congress notes that the National Strategy for Victory 
        in Iraq is not specific regarding vital measures or other 
        benchmarks in Iraq's political, security, infrastructure, and 
        economic development that need to be met to signal to Congress 
        and the American people that victory in Iraq has been achieved 
        and the majority of United States Armed Forces currently 
        deployed in Operation Iraqi Freedom can be redeployed to their 
        peacetime duty stations.
            (13) Congress notes the findings of the reports pursuant to 
        the section entitled ``Measuring Stability and Security in 
        Iraq'' of House Conference Report 109-72 accompanying H.R. 
        1268, Emergency Supplemental Appropriations Act for Defense, 
        the Global War on Terror, and Tsunami Relief, 2005 (Public Law 
        109-13), submitted by the Secretary of Defense (in consultation 
        with other appropriate members of the National Security 
        Council) to the Speaker of the House of Representatives, the 
        Majority Leader of the Senate, and the congressional defense 
        committees that identifies security, economic, and Iraqi 
        Security Force training performance standards and goals, 
        accompanied by a notional timetable for achieving these goals.
            (14) Congress notes the report submitted pursuant to the 
        United States Policy in Iraq Act (section 1227 of the National 
        Defense Authorization Act for Fiscal Year 2006 (Public Law 109-
        163); 119 Stat. 3465-3467), and the current military mission 
        and the diplomatic, political, economic, and military measures 
        that are being or have been undertaken to successfully complete 
        or support that mission.
            (15) Congress reaffirms the findings of the section 
        entitled ``Measuring Stability and Security in Iraq'' of House 
        Conference Report 109-72 and of section 1227 of the National 
        Defense Authorization Act for Fiscal Year 2006, and notes the 
        advantages of consolidating various reports into a single 
        report, from the President, that reflects the requirements of 
        both laws referenced in paragraphs (13) and (14) and that 
        includes the requirements of section 4 of this Act.
            (16) Congress is concerned that the reports submitted to 
        Congress pursuant to the section entitled ``Measuring Stability 
        and Security in Iraq'' of House Conference Report 109-72 and of 
        section 1227 of the National Defense Authorization Act for 
        Fiscal Year 2006, do not provide sufficient content, 
        information, data, and analysis for Congress to comprehensively 
        evaluate the mission in Iraq.
            (17) Congress urges that the reports transmitted pursuant 
        to section 4 of this Act be organized and written to provide 
        content, information, data, and analysis on the mission in Iraq 
        as it pertains to the political, security, infrastructure, and 
        economic development of and governance capacity building at and 
        between the national, national capital city, regional, 
        provincial, provincial capital city, and strategic municipal 
        levels of government within Iraq.
            (18) It is the duty of Congress under Article I, Section 8 
        of the United States Constitution to ``raise and support 
        Armies,'' and that by requiring the President to report to 
        Congress on Operation Iraqi Freedom, Congress is better able to 
        carry out this constitutional duty.

SEC. 4. REPORT.

    (a) Report.--Not later than 90 days after the date of the enactment 
of this Act, the President shall, in accordance with, in support of, 
and to more clearly define the National Strategy for Victory in Iraq, 
transmit to Congress a report that--
            (1) consolidates the requirements of the section entitled 
        ``Measuring Stability and Security in Iraq'' of House 
        Conference Report 109-72 accompanying H.R. 1268, Emergency 
        Supplemental Appropriations Act for Defense, the Global War on 
        Terror, and Tsunami Relief, 2005 (Public Law 109-13) and the 
        United States Policy in Iraq Act (section 1227 of the National 
        Defense Authorization Act for Fiscal Year 2006 (Public Law 109-
        163); 119 Stat. 3465-3467) by containing the information 
        required to be submitted to Congress pursuant to the 
        requirements of such provisions of law;
            (2) identifies the specific or vital measures or other 
        benchmarks that define the terms of completion of and 
        conditions for victory for Operation Iraqi Freedom and their 
        correlation with the strategic objectives and lines of action 
        outlined in the appendix of the National Strategy for Victory 
        in Iraq;
            (3) describes the nature and substance of the programs 
        implemented to achieve such strategic objectives and lines of 
        action; and
            (4) analyzes using metrics the effectiveness of such 
        programs toward achieving the specific vital measures or other 
        benchmarks required to be identified by paragraph (2).
    (b) Update.--
            (1) In general.--The President shall transmit to Congress 
        an update of the report required by subsection (a) not less 
        than once every 120 days after the date on which the President 
        transmits the report required by such subsection until such 
        time as Operation Iraqi Freedom has been completed.
            (2) Contents.--Each update of the report--
                    (A) may reflect adjustments to the specific or 
                vital measures or other benchmarks identified pursuant 
                to subsection (a)(2), or to the nature or substance of 
                the programs described in subsection (a)(3), as 
                realties, circumstances, and events in Iraq change or 
                evolve; and
                    (B) shall include detailed justifications as to why 
                adjustments to such specific or vital measures or other 
                benchmarks, or to the nature or substance of such 
                programs, were made.
    (c) Additional Requirements.--The report required by subsection (a) 
and updates of the report required by subsection (b) shall be--
            (1) organized and written to provide content, data, 
        information, and analysis on the complex interdependent nature 
        of the challenges associated with the political, security, 
        infrastructure, and economic development of and governance 
        capacity building at and between the national, national capital 
        city, regional, provincial, provincial capital city, and 
        strategic municipal levels of government within Iraq; and
            (2) accompanied by a comprehensive all-source intelligence 
        analysis of Iraq that includes information by and from the 
        national, national capital city, regional, provincial, 
        provincial capital city, and strategic municipal levels of 
        government within Iraq.
    (d) Form.--The report required by subsection (a) and updates of the 
report required by subsection (b) shall be transmitted in unclassified 
form but may contain a classified annex.
Iraq Congressional Oversight Enhancement Act - Directs the President to transmit periodically to Congress a consolidated, comprehensive report on the implementation of the National Strategy for Victory in Iraq.

SECTION 1. SHORT TITLE.

     This Act may be cited as the ``Public Employer's Restitution Act 
of 2003'' .

SEC. 2. ALIENATION OF PENSION PLAN BENEFITS TO SATISFY COURT JUDGMENTS, 
              DECREES, OR ORDERS REQUIRING RESTITUTION FOR EMBEZZLEMENT 
              OF STATE OR LOCAL GOVERNMENT FUNDS.

    (a) Amendment to the Employee Retirement Income Security Act of 
1974.--
            (1) In general.--Section 206(d) of the Employee Retirement 
        Income Security Act of 1974 (29 U.S.C. 1056(d)) is amended by 
        adding at the end the following new paragraph:
    ``(6)(A) Paragraph (1) shall apply to the creation, assignment, or 
recognition of a right to any benefit payable with respect to a 
participant pursuant to an embezzlement restitution order, except that 
paragraph (1) shall not apply if the order is determined to be a 
qualified embezzlement restitution order. Each pension plan shall 
provide for the payment of benefits in accordance with the applicable 
requirements of any qualified embezzlement restitution order.
    ``(B) For purposes of this paragraph--
            ``(i) the term `qualified embezzlement restitution order' 
        means an embezzlement restitution order--
                    ``(I) which creates or recognizes the existence of 
                an aggrieved State or local government's right to, or 
                assigns to an aggrieved State or local government the 
                right to, receive all or a portion of the benefits 
                payable with respect to a participant under a plan, and
                    ``(II) with respect to which the requirements of 
                subparagraphs (C) and (D) are met, and
            ``(ii) the term `embezzlement restitution order' means an 
        order arising under a judgment of conviction of an individual 
        by a court of competent jurisdiction of the crime of 
        embezzlement in violation of the applicable laws of the United 
        States or of any State or political subdivision thereof, which 
        provides for restitution to the government of any State or 
        political subdivision thereof of losses sustained by such 
        government in connection with embezzlement of the funds of such 
        government by such individual.
    ``(C) A qualified embezzlement restitution order meets the 
requirements of this subparagraph only if such order clearly 
specifies--
            ``(i) the name and the last known mailing address (if any) 
        of the participant and the name and mailing address of each 
        aggrieved State or local government covered by the order,
            ``(ii) the amount or percentage of the participant's 
        benefits to be paid by the plan to each such aggrieved State or 
        local government, or the manner in which such amount or 
        percentage is to be determined,
            ``(iii) the number of payments or period to which such 
        order applies, and
            ``(iv) each plan to which such order applies.
    ``(D) A qualified embezzlement restitution order meets the 
requirements of this subparagraph only if such order--
            ``(i) does not require a plan to provide any type or form 
        of benefit, or any option, not otherwise provided under the 
        plan,
            ``(ii) does not require the plan to provide increased 
        benefits (determined on the basis of actuarial value), and
            ``(iii) does not require the payment of benefits to the 
        government of any State or political subdivision thereof which 
        are required to be paid to any other entity--
                    ``(I) as an aggrieved State or local government 
                under another order previously determined to be a 
                qualified embezzlement restitution order, or
                    ``(II) as an alternate payee under an order 
                previously determined to be a qualified domestic 
                relations order (as defined in paragraph (3)(B)(i)).
    ``(E) The provisions of subparagraphs (E), (G), (H), (I), and (M) 
of paragraph (3) shall apply for purposes of this paragraph in the same 
manner and to the same extent as such subparagraphs apply for purposes 
of paragraph (3), except that--
            ``(i) any reference to a `qualified domestic relations 
        order` or a `domestic relations order' shall be deemed a 
        reference to a qualified embezzlement restitution order or an 
        embezzlement restitution order, respectively, and
            ``(ii) any reference to an `alternate payee' shall be 
        deemed a reference to an aggrieved State or local government.
    ``(F) Notwithstanding subparagraph (A), paragraph (1) shall apply 
with respect to the creation, assignment, or recognition of a right to 
any benefit payable with respect to a participant pursuant to any 
embezzlement restitution order if the requirements of paragraph (4)(C) 
are met with respect to the plan. In applying paragraph (4)(C) and 
paragraph (5) for purposes of this subparagraph--
            ``(i) any reference to an `offset' shall be deemed a 
        reference to the creation, assignment, or recognition of a 
        right to any benefit payable with respect to the participant 
        pursuant to an embezzlement restitution order,
            ``(ii) any reference to a `judgment, order, decree, or 
        settlement' to pay an amount to the plan shall be deemed a 
        reference to the embezzlement restitution order, and
            ``(iii) any reference to a `violation of part 4' of 
        subtitle B shall be deemed a reference to embezzlement in 
        violation of the applicable laws of the United States or of any 
        State or political subdivision thereof.
    ``(G) For purposes of this paragraph, the term `aggrieved State or 
local government' means, with respect to any plan participant, the 
government of a State or a political subdivision thereof that is 
recognized by an embezzlement restitution order as having a right to 
receive as restitution all, or a portion of, the benefits payable under 
the plan with respect to such participant.
    ``(H) This paragraph shall not apply to any plan to which paragraph 
(1) does not apply.
    ``(I) In prescribing regulations under this paragraph, the 
Secretary shall consult with the Secretary of the Treasury.''.
            (2) Clarification of preemption provision.--Paragraph (7) 
        of section 514(b) of such Act (29 U.S.C. 1144(b)(7)) is amended 
        by inserting ``qualified embezzlement restitution orders 
        (within the meaning of section 206(d)(6)(B)(i)),'' after 
        ``section 206(d)(3)(B)(i)),''.
    (b) Amendments to the Internal Revenue Code of 1986.--
            (1) In general.--Paragraph (13) of section 401(a) of the 
        Internal Revenue Code of 1986 (relating to assignment and 
        alienation) is amended by adding at the end the following new 
        subparagraph:
                    ``(E) Special rules for qualified embezzlement 
                restitution orders.--Subparagraph (A) shall not apply 
                with respect to the creation, assignment, or 
                recognition of a right to any benefit payable with 
                respect to a participant pursuant to an embezzlement 
                restitution order, except that subparagraph (A) shall 
                not apply if the order is determined to be a qualified 
                embezzlement restitution order.''.
            (2) Qualified embezzlement restitution order defined.--
        Section 414 of such Code (relating to definitions and special 
        rules) is amended by adding at the end the following new 
        subsection:
    ``(w) Qualified Embezzlement Restitution Order Defined.--For 
purposes of this subsection and section 401(a)(13)--
            ``(1) In general.--
                    ``(A) Qualified embezzlement restitution order.--
                The term `qualified embezzlement restitution order' 
                means an embezzlement restitution order--
                            ``(i) which creates or recognizes the 
                        existence of an aggrieved State or local 
                        government's right to, or assigns to an 
                        aggrieved State or local government the right 
                        to, receive all or a portion of the benefits 
                        payable with respect to a participant under a 
                        plan, and
                            ``(ii) with respect to which the 
                        requirements of paragraphs (2) and (3) are met.
                    ``(B) Embezzlement restitution order.--The term 
                `embezzlement restitution order' means an order arising 
                under a judgment of conviction of an individual by a 
                court of competent jurisdiction of the crime of 
                embezzlement in violation of the applicable laws of the 
                United States or of any State or political subdivision 
                thereof, which provides for restitution to the 
                government of any State or political subdivision 
                thereof of losses sustained by such government in 
                connection with the embezzlement of the funds of such 
                government by such individual.
            ``(2) Order must clearly specify certain facts.--A 
        qualified embezzlement restitution order meets the requirements 
        of this paragraph only if such order clearly specifies--
                    ``(A) the name and the last known mailing address 
                (if any) of the participant and the name and mailing 
                address of each aggrieved State or local government 
                covered by the order,
                    ``(B) the amount or percentage of the participant's 
                benefits to be paid by the plan to each such aggrieved 
                State or local government, or the manner in which such 
                amount or percentage is to be determined,
                    ``(C) the number of payments or period to which 
                such order applies, and
                    ``(D) each plan to which such order applies.
            ``(3) Order may not alter amount, form, etc., of 
        benefits.--A qualified embezzlement restitution order meets the 
        requirements of this paragraph only if such order--
                    ``(A) does not require a plan to provide any type 
                or form of benefit, or any option, not otherwise 
                provided under the plan,
                    ``(B) does not require the plan to provide 
                increased benefits (determined on the basis of 
                actuarial value), and
                    ``(C) does not require the payment of benefits to 
                the government of any State or political subdivision 
                thereof which are required to be paid to any other 
                entity--
                            ``(i) as an aggrieved State or local 
                        government under another order previously 
                        determined to be a qualified embezzlement 
                        restitution order, or
                            ``(ii) as an alternate payee under an order 
                        previously determined to be a qualified 
                        domestic relations order (as defined in 
                        subsection (p)(1)(A)).
            ``(4) Application of certain provisions.--The provisions of 
        paragraphs (4), (6), (7), (10), (11), and (12) of subsection 
        (p) shall apply for purposes of this subsection and section 
        401(a)(13) in the same manner and to the same extent as such 
        paragraphs apply for purposes of subsection (p) and section 
        401(a)(13), except that--
                    ``(A) any reference to a `qualified domestic 
                relations order` or a `domestic relations order' shall 
                be deemed a reference to a qualified embezzlement 
                restitution order or an embezzlement restitution order, 
                respectively, and
                    ``(B) any reference to an `alternate payee' shall 
                be deemed a reference to an aggrieved State or local 
                government.
            ``(5) Inapplicability of embezzlement restitution orders in 
        the case of certain survivor annuity requirements applicable to 
        spouse.--Notwithstanding section 401(a)(13)(E), section 
        401(a)(13)(A) shall apply with respect to the creation, 
        assignment, or recognition of a right to any benefit payable 
        with respect to a participant pursuant to any embezzlement 
        restitution order if the requirements of section 
        401(a)(13)(C)(iii) are met with respect to the plan. In 
        applying subparagraphs (C)(iii) and (D) of section 401(a)(13) 
        for purposes of this paragraph--
                    ``(A) any reference to an `offset' shall be deemed 
                a reference to the creation, assignment, or recognition 
                of a right to any benefit payable with respect to the 
                participant pursuant to an embezzlement restitution 
                order,
                    ``(B) to pay an amount to the plan shall be deemed 
                a reference to the embezzlement restitution order, and
                    ``(C) any reference to a `violation of part 4' of 
                subtitle B of title I of the Employee Retirement Income 
                Security Act of 1974 shall be deemed a reference to 
                embezzlement in violation of the applicable laws of the 
                United States or of any State or political subdivision 
                thereof.
            ``(6) Aggrieved state or local government.--The term 
        `aggrieved State or local government' means, with respect to 
        any plan participant, the government of any State or political 
        subdivision thereof that is recognized by an embezzlement 
        restitution order as having a right to receive as restitution 
        all, or a portion of, the benefits payable under the plan with 
        respect to such participant.
            ``(7) Subsection not to apply to plans to which section 
        401(a)(13) does not apply.--This subsection shall not apply to 
        any plan to which section 401(a)(13) does not apply. For 
        purposes of this title, except as provided in regulations, any 
        distribution from an annuity contract under section 403(b) 
        pursuant to a qualified embezzlement restitution order shall be 
        treated in the same manner as a distribution from a plan to 
        which section 401(a)(13) applies.
            ``(8) Consultation with the secretary.--In prescribing 
        regulations under this subsection and section 401(a)(13), the 
        Secretary of Labor shall consult with the Secretary.''.
    (c) Effective Date.--The amendments made by this Act shall take 
effect January 1, 2004.

Public Employer's Restitution Act of 2003 - Amends the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code to allow alienation of an individual's benefits under certain pension plans in order to satisfy, in part or whole, court judgments, decrees, or orders requiring restitution for embezzlement of State or local government funds (qualified embezzlement restitution orders).

Gives priority, before payment of such benefits to a State or local government under such an order, to their payment to any other aggrieved State or local government under a previously determined qualified: (1) embezzlement restitution order; or (2) domestic relations order that has such government as an alternate payee.