TASK DEFINITION: In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
PROBLEM: SECTION 1. SHORT TITLE; REFERENCES TO HIGHER EDUCATION ACT OF 1965.

    (a) Short Title.--This Act may be cited as the ``Higher Education 
Assistance Improvement Act''.
    (b) References to Higher Education Act of 1965.--Except as 
otherwise expressly provided, whenever in this Act an amendment or 
reference is expressed in terms of an amendment to, or reference to, a 
section or other provision, the reference shall be considered to be 
made to a section or other provision of the Higher Education Act of 
1965.

SEC. 2. ADDITIONAL PROGRAM FUNDING AUTHORIZATIONS.

    (a) Pell Grants.--Section 401(b)(2)(A) (20 U.S.C. 1070(b)(2)(A)) is 
amended by striking clauses (iv) and (v) and inserting the following:
            ``(iv) $7,500 for academic year 2002-2003; and
            ``(v) $7,900 for academic year 2003-2004,''.
    (b) TRIO.--Section 402A(f) (20 U.S.C. 1070a-11(f)) is amended by 
striking ``$700,000,000 for fiscal year 1999, and such sums as may be 
necessary for each of the 4 succeeding fiscal years'' and inserting 
``$1,460,000,000 for fiscal year 2002 and such sums as may be necessary 
for the succeeding fiscal year''.
    (c) GEAR UP.--Section 404H (20 U.S.C. 1070a-28) is amended by 
striking ``$200,000,000 for fiscal year 1999 and such sums as may be 
necessary for each of the 4 succeeding fiscal years'' and inserting 
``$590,000,000 for fiscal year 2002 and such sums as may be necessary 
for the succeeding fiscal year''.
    (d) Supplemental Education Opportunity Grants.--Section 413A(b) (20 
U.S.C. 1070b(b)) is amended by striking ``$675,000,000 for fiscal year 
1999 and such sums as may be necessary for the 4 succeeding fiscal 
years'' and inserting ``$1,300,000,000 for fiscal year 2002 and such 
sums as may be necessary for the succeeding fiscal year''.
    (e) Graduate Assistance in Areas of National Need.--Section 716 (20 
U.S.C. 1135e) is amended by striking ``$35,000,000 for fiscal year 1999 
and such sums as may be necessary for each of the 4 succeeding fiscal 
years'' and inserting ``$62,000,000 for fiscal year 2002 and such sums 
as may be necessary for the succeeding fiscal year''.
    (f) Thurgood Marshall.--Section 721(h) (20 U.S.C. 1136(h)) is 
amended by striking ``$5,000,000 for fiscal year 1999 and each of the 4 
succeeding fiscal years'' and inserting ``$8,000,000 for fiscal year 
2002 and such sums as may be necessary for the succeeding fiscal 
year''.

SEC. 3. ADDITIONAL APPROPRIATIONS MANDATE.

    It is the sense of Congress that the appropriations for the 
following higher education programs should be increased as follows:
            (1) LEAP.--The appropriations under section 415A(b)(1) (20 
        U.S.C. 1070c(b)(1)) should be doubled to at least $110,000,000 
        for fiscal year 2002 and such sums as may be necessary for the 
        succeeding fiscal year.
            (2) CAMPIS.--The appropriations under section 419N(g) (20 
        U.S.C. 1070e(g)) should be doubled to at least $50,000,000 for 
        fiscal year 2002 and such sums as may be necessary for the 
        succeeding fiscal year.
            (3) Work-study.--The appropriations under section 441(b) 
        (42 U.S.C. 2751(b)) should be increased to at least 
        $1,050,000,000 for fiscal year 2002 and such sums as may be 
        necessary for the succeeding fiscal year.
            (4) National health service corps scholarship and loan 
        repayment programs.--The appropriations under sections 338A and 
        338B of the Public Health Service Act (42 U.S.C. 254l, 254l-1) 
        should be doubled to at least $175,850,000 for fiscal year 2002 
        and such sums as may be necessary for the succeeding fiscal 
        year.
            (5) Perkins loans.--The appropriations under section 
        461(b)(1) (20 U.S.C. 1087aa(b)(1)) should be doubled to at 
        least $200,000,000 for fiscal year 2002 and such sums as may be 
        necessary for the succeeding fiscal year, and the amount 
        available under section 465 for loan cancellation should be 
        doubled to at least $120,000,000 for fiscal year 2002 and such 
        sums as may be necessary for the succeeding fiscal year.
            (6) Javits fellowships.--The appropriations under section 
        705 (20 U.S.C. 1134d) should be increased to at least 
        $20,000,000 for fiscal year 2002 and such sums as may be 
        necessary for the succeeding fiscal year.

SEC. 4. LOAN FORGIVENESS.

    (a) Expansion of Eligibility.--
            (1) Elimination of new borrower restrictions.--
                    (A) FFEL program.--Section 428J(b) (20 U.S.C. 1078-
                10(b)) is amended by striking ``for any new borrower on 
                or after October 1, 1998, who'' and inserting ``for any 
                borrower who performs the qualifying service on or 
                after October 1, 1998, and who''.
                    (B) Federal direct loan program.--Section 460(b)(1) 
                of such Act (20 U.S.C. 1087j(b)(1)) is amended by 
                striking ``for any new borrower on or after October 1, 
                1998, who'' and inserting ``for any borrower who 
                performs the qualifying service on or after October 1, 
                1998, and who''.
            (2) Expansion of eligible service; eliminating delay in 
        service benefit.--
                    (A) FFEL program.--Section 428J(b)(1) is amended to 
                read as follows:
            ``(1) has been engaged--
                    ``(A) in any service that qualifies for 
                cancellation of Federal Perkins Loans under section 
                465(a)(2);
                    ``(B) in full-time employment in service to 
                economically disadvantaged individuals or communities, 
                child and elder care services, social work, public 
                prosecutors and defenders, and police, fire, and rescue 
                services, as defined by the Secretary; or
                    ``(C) in full-time employment in any service that 
                the Secretary recognizes by regulation as providing 
                public service that is comparable to the services 
                described in subparagraph (A) or (B); and''.
                    (B) Federal direct loan program.--Section 
                460(b)(1)(A) (20 U.S.C. 1087j(b)(1)(A)) is amended to 
                read as follows:
                    ``(A) has been engaged--
                            ``(i) in any service that qualifies for 
                        cancellation of Federal Perkins Loans under 
                        section 465(a)(2); or
                            ``(ii) in full-time employment in service 
                        to economically disadvantaged individuals or 
                        communities, child and elder care services, 
                        social work, public prosecutors and defenders, 
                        and police, fire, and rescue services, as 
                        defined by the Secretary;
                            ``(iii) in full-time employment in any 
                        service that the Secretary recognizes by 
                        regulation as providing public service that is 
                        comparable to the services described in clause 
                        (i) or (ii); and''.
                    (C) Perkins loans.--Section 465(a)(2) is amended by 
                adding after the last sentence thereof the following 
                new sentence: ``Whenever the Secretary acts pursuant to 
                section 428J(b)(1)(B) or (C) or 460(b)(1)(A)(ii) or 
                (iii) to recognize by regulation or define additional 
                services as comparable qualifying services under such 
                sections, the Secretary shall, by regulation, recognize 
                such services as qualifying services for purposes of 
                this section.''.
    (b) Amount and Rate of Repayment.--
            (1) FFEL program.--Section 428J(c) (20 U.S.C. 1078-10(c)) 
        is amended by striking paragraph (1) and inserting the 
        following:
            ``(1) Amount and rate of repayment.--The Secretary shall 
        repay the aggregate of the loan obligation on a loan made under 
        section 428 or 428H that is outstanding after the completion of 
        the first complete year of qualifying service described in 
        subsection (b)(1) for which the borrower seeks repayment under 
        this section. Such amount shall be repaid at the rate of one-
        third of such amount for each of the first three years of such 
        service.''.
            (2) Federal direct loan program.--Section 460(c) of such 
        Act (20 U.S.C. 1087j(c)) is amended by striking paragraph (1) 
        and inserting the following:
            ``(1) Amount and rate of repayment.--The Secretary shall 
        cancel the aggregate of the loan obligation on a loan made 
        under section 428 or 428H that is outstanding after the 
        completion of the first complete year of qualifying service 
        described in subsection (b)(1)(A). Such amount shall be 
        canceled at the rate of one-third of such amount for each of 
        the first three years of such service.''.
            (3) Perkins loans.--Section 465(a) (20 U.S.C. 1087ee(a)) is 
        amended by striking paragraph (3)(A) and inserting the 
        following:
    ``(3)(A) The percent of a loan which shall be canceled under 
paragraph (1) of this subsection is at the rate of 33\1/3\ percent for 
each of 3 years of service described in paragraph (2).''.

SOLUTION: Higher Education Assistance Improvement Act - Amends the Higher Education Act of 1965 (HEA) to increase funds available for the provision of student financial assistance.Increases the maximum individual Pell grant amount to: (1) $7,500 for academic year 2002-2003; and (2) $7,900 for academic year 2003-2004.Increases amounts authorized to be appropriated for FY 2002 and 2003 under the HEA student assistance provisions: (1) Federal TRIO programs; (2) Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR UP); (3) supplemental education opportunity grants; (4) graduate assistance in areas of national need; and (5) Thurgood Marshall legal educational opportunity program.Expresses the sense of Congress that appropriations for the following higher education programs should be increased by specified amounts for FY 2002 and as necessary for FY 2003: (1) Leveraging Educational Assistance Partnership (LEAP); (2) Child Care Access Means Parents in School (CAMPIS); (3) work-study; (4) National Health Service Corps scholarship and loan repayment programs; (5) Perkins loans; and (6) Javits fellowships.Expands eligibility under the Federal Family Education Loan (FFEL), Federal direct loan, and Federal Perkins loan programs by: (1) eliminating certain new borrower restrictions; (2) expanding eligible service; and (3) eliminating delays in service benefit. Directs the Secretary of Education to repay or cancel certain amounts of loan obligations under those HEA student loan programs.

PROBLEM: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Opioid Use Disorder Treatment 
Expansion and Modernization Act''.

SEC. 2. FINDING.

    The Congress finds that opioid use disorder has become a public 
health epidemic that must be addressed by increasing awareness and 
access to all treatment options for opioid use disorder, overdose 
reversal, and relapse prevention.

SEC. 3. OPIOID USE DISORDER TREATMENT MODERNIZATION.

    (a) In General.--Section 303(g)(2) of the Controlled Substances Act 
(21 U.S.C. 823(g)(2)) is amended--
            (1) in subparagraph (B), by striking clauses (i), (ii), and 
        (iii) and inserting the following:
            ``(i) The practitioner is a qualifying practitioner (as 
        defined in subparagraph (G)).
            ``(ii) With respect to patients to whom the practitioner 
        will provide such drugs or combinations of drugs, the 
        practitioner has the capacity to provide directly, by referral, 
        or in such other manner as determined by the Secretary--
                    ``(I) all schedule III, IV, and V drugs, as well as 
                unscheduled medications approved by the Food and Drug 
                Administration, for the treatment of opioid use 
                disorder, including such drugs and medications for 
                maintenance, detoxification, overdose reversal, and 
                relapse prevention, as available; and
                    ``(II) appropriate counseling and other appropriate 
                ancillary services.
            ``(iii)(I) The total number of such patients of the 
        practitioner at any one time will not exceed the applicable 
        number. Except as provided in subclause (II), the applicable 
        number is 30.
            ``(II) The applicable number is 100 if, not sooner than 1 
        year after the date on which the practitioner submitted the 
        initial notification, the practitioner submits a second 
        notification to the Secretary of the need and intent of the 
        practitioner to treat up to 100 patients.
            ``(III) The Secretary may by regulation change such total 
        number.
            ``(IV) The Secretary may exclude from the applicable number 
        patients to whom such drugs or combinations of drugs are 
        directly administered by the qualifying practitioner in the 
        office setting.
            ``(iv) If the Secretary by regulation increases the total 
        number of patients which a qualifying practitioner is permitted 
        to treat pursuant to clause (iii)(II), the Secretary shall 
        require such a practitioner to obtain a written agreement from 
        each patient, including the patient's signature, that the 
        patient--
                    ``(I) will receive an initial assessment and 
                treatment plan and periodic assessments and treatment 
                plans thereafter;
                    ``(II) will be subject to medication adherence and 
                substance use monitoring;
                    ``(III) understands available treatment options, 
                including all drugs approved by the Food and Drug 
                Administration for the treatment of opioid use 
                disorder, including their potential risks and benefits; 
                and
                    ``(IV) understands that receiving regular 
                counseling services is critical to recovery.
            ``(v) The practitioner will comply with the reporting 
        requirements of subparagraph (D)(i)(IV).'';
            (2) in subparagraph (D)--
                    (A) in clause (i), by adding at the end the 
                following:
            ``(IV) The practitioner reports to the Secretary, at such 
        times and in such manner as specified by the Secretary, such 
        information and assurances as the Secretary determines 
        necessary to assess whether the practitioner continues to meet 
        the requirements for a waiver under this paragraph.'';
                    (B) in clause (ii), by striking ``Upon receiving a 
                notification under subparagraph (B)'' and inserting 
                ``Upon receiving a determination from the Secretary 
                under clause (iii) finding that a practitioner meets 
                all requirements for a waiver under subparagraph (B)''; 
                and
                    (C) in clause (iii)--
                            (i) by inserting ``and shall forward such 
                        determination to the Attorney General'' before 
                        the period at the end of the first sentence; 
                        and
                            (ii) by striking ``physician'' and 
                        inserting ``practitioner'';
            (3) in subparagraph (G)--
                    (A) by amending clause (ii)(IV) to read as follows:
                    ``(IV) The physician has, with respect to the 
                treatment and management of opiate-dependent patients, 
                completed not less than 8 hours of training (through 
                classroom situations, seminars at professional society 
                meetings, electronic communications, or otherwise) that 
                is provided by the American Society of Addiction 
                Medicine, the American Academy of Addiction Psychiatry, 
                the American Medical Association, the American 
                Osteopathic Association, the American Psychiatric 
                Association, or any other organization that the 
                Secretary determines is appropriate for purposes of 
                this subclause. Such training shall address--
                            ``(aa) opioid maintenance and 
                        detoxification;
                            ``(bb) appropriate clinical use of all 
                        drugs approved by the Food and Drug 
                        Administration for the treatment of opioid use 
                        disorder;
                            ``(cc) initial and periodic patient 
                        assessments (including substance use 
                        monitoring);
                            ``(dd) individualized treatment planning; 
                        overdose reversal; relapse prevention;
                            ``(ee) counseling and recovery support 
                        services;
                            ``(ff) staffing roles and considerations;
                            ``(gg) diversion control; and
                            ``(hh) other best practices, as identified 
                        by the Secretary.''; and
                    (B) by adding at the end the following:
            ``(iii) The term `qualifying practitioner' means--
                    ``(I) a qualifying physician, as defined in clause 
                (ii); or
                    ``(II) during the period beginning on the date of 
                the enactment of the Opioid Use Disorder Treatment 
                Expansion and Modernization Act and ending on the date 
                that is 3 years after such date of enactment, a 
                qualifying other practitioner, as defined in clause 
                (iv).
            ``(iv) The term `qualifying other practitioner' means a 
        nurse practitioner or physician assistant who satisfies each of 
        the following:
                    ``(I) The nurse practitioner or physician assistant 
                is licensed under State law to prescribe schedule III, 
                IV, or V medications for the treatment of pain.
                    ``(II) The nurse practitioner or physician 
                assistant satisfies one or more of the following:
                            ``(aa) Has completed not fewer than 24 
                        hours of initial training addressing each of 
                        the topics listed in clause (ii)(IV) (through 
                        classroom situations, seminars at professional 
                        society meetings, electronic communications, or 
                        otherwise) provided by the American Society of 
                        Addiction Medicine, the American Academy of 
                        Addiction Psychiatry, the American Medical 
                        Association, the American Osteopathic 
                        Association, the American Nurses Credentialing 
                        Center, the American Psychiatric Association, 
                        the American Association of Nurse 
                        Practitioners, the American Academy of 
                        Physician Assistants, or any other organization 
                        that the Secretary determines is appropriate 
                        for purposes of this subclause.
                            ``(bb) Has such other training or 
                        experience as the Secretary determines will 
                        demonstrate the ability of the nurse 
                        practitioner or physician assistant to treat 
                        and manage opiate-dependent patients.
                    ``(III) The nurse practitioner or physician 
                assistant is supervised by or works in collaboration 
                with a qualifying physician, if the nurse practitioner 
                or physician assistant is required by State law to 
                prescribe medications for the treatment of opioid use 
                disorder in collaboration with or under the supervision 
                of a physician.
        The Secretary may review and update the requirements for being 
        a qualifying other practitioner under this clause.''; and
            (4) in subparagraph (H)--
                    (A) in clause (i), by inserting after subclause 
                (II) the following:
            ``(III) Such other elements of the requirements under this 
        paragraph as the Secretary determines necessary for purposes of 
        implementing such requirements.''; and
                    (B) by amending clause (ii) to read as follows:
    ``(ii) Not later than 1 year after the date of enactment of the 
Opioid Use Disorder Treatment Expansion and Modernization Act, the 
Secretary shall update the treatment improvement protocol containing 
best practice guidelines for the treatment of opioid-dependent patients 
in office-based settings. The Secretary shall update such protocol in 
consultation with experts in opioid use disorder research and 
treatment.''.
    (b) Recommendation of Revocation or Suspension of Registration in 
Case of Substantial Noncompliance.--The Secretary of Health and Human 
Services may recommend to the Attorney General that the registration of 
a practitioner be revoked or suspended if the Secretary determines, 
according to such criteria as the Secretary establishes by regulation, 
that a practitioner who is registered under section 303(g)(2) of the 
Controlled Substances Act (21 U.S.C. 823(g)(2)) is not in substantial 
compliance with the requirements of such section, as amended by this 
Act.
    (c) Opioid Defined.--Section 102(18) of the Controlled Substances 
Act (21 U.S.C. 802(18)) is amended by inserting ``or `opioid''' after 
``The term `opiate'''.
    (d) Reports to Congress.--
            (1) In general.--Not later than 2 years after the date of 
        enactment of this Act and not less than over every 5 years 
        thereafter, the Secretary of Health and Human Services, in 
        consultation with the Drug Enforcement Administration and 
        experts in opioid use disorder research and treatment, shall--
                    (A) perform a thorough review of the provision of 
                opioid use disorder treatment services in the United 
                States, including services provided in opioid treatment 
                programs and other specialty and nonspecialty settings; 
                and
                    (B) submit a report to the Congress on the findings 
                and conclusions of such review.
            (2) Contents.--Each report under paragraph (1) shall 
        include an assessment of--
                    (A) compliance with the requirements of section 
                303(g)(2) of the Controlled Substances Act (21 U.S.C. 
                823(g)(2)), as amended by this Act;
                    (B) the measures taken by the Secretary of Health 
                and Human Services to ensure such compliance;
                    (C) whether there is further need to increase or 
                decrease the number of patients a waivered practitioner 
                is permitted to treat, as provided for by the amendment 
                made by subsection (a)(1);
                    (D) the extent to which, and proportions with 
                which, the full range of Food and Drug Administration-
                approved treatments for opioid use disorder are used in 
                routine health care settings and specialty substance 
                use disorder treatment settings;
                    (E) access to, and use of, counseling and recovery 
                support services, including the percentage of patients 
                receiving such services;
                    (F) changes in State or local policies and 
                legislation relating to opioid use disorder treatment;
                    (G) the use of prescription drug monitoring 
                programs by practitioners who are permitted to dispense 
                narcotic drugs to individuals pursuant to a waiver 
                under section 303(g)(2) of the Controlled Substances 
                Act (21 U.S.C. 823(g)(2));
                    (H) the findings resulting from inspections by the 
                Drug Enforcement Administration of practitioners 
                described in subparagraph (G); and
                    (I) the effectiveness of cross-agency collaboration 
                between Department of Health and Human Services and the 
                Drug Enforcement Administration for expanding effective 
                opioid use disorder treatment.

SEC. 4. SENSE OF CONGRESS.

    It is the Sense of Congress that, with respect to the total number 
of patients that a qualifying physician (as defined in subparagraph 
(G)(iii) of section 303(g)(2) of the Controlled Substances Act (21 
U.S.C. 823(g)(2)) can treat at any one time pursuant to such section, 
the Secretary of Health and Human Services should consider raising such 
total number to 250 patients following a third notification to the 
Secretary of the need and intent of the physician to treat up to 250 
patients that is submitted to the Secretary not sooner than 1 year 
after the date on which the physician submitted to the Secretary a 
second notification to treat up to 100 patients.

SEC. 5. PARTIAL FILLS OF SCHEDULE II CONTROLLED SUBSTANCES.

    (a) In General.--Section 309 of the Controlled Substances Act (21 
U.S.C. 829) is amended by adding at the end the following:
    ``(f) Partial Fills of Schedule II Controlled Substances.--
            ``(1) Partial fills.--
                    ``(A) In general.--A prescription for a controlled 
                substance in schedule II may be partially filled if--
                            ``(i) it is not prohibited by State law;
                            ``(ii) the prescription is written and 
                        filled in accordance with the Controlled 
                        Substances Act (21 U.S.C. 801 et seq.), 
                        regulations prescribed by the Attorney General, 
                        and State law;
                            ``(iii) the partial fill is requested by 
                        the patient or the practitioner that wrote the 
                        prescription; and
                            ``(iv) the total quantity dispensed in all 
                        partial fillings does not exceed the total 
                        quantity prescribed.
                    ``(B) Other circumstances.--A prescription for a 
                controlled substance in schedule II may be partially 
                filled in accordance with section 1306.13 of title 21, 
                Code of Federal Regulations (as in effect on the date 
                of enactment of the Reducing Unused Medications Act of 
                2016).
            ``(2) Remaining portions.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), remaining portions of a partially 
                filled prescription for a controlled substance in 
                schedule II--
                            ``(i) may be filled; and
                            ``(ii) shall be filled not later than 30 
                        days after the date on which the prescription 
                        is written.
                    ``(B) Emergency situations.--In emergency 
                situations, as described in subsection (a), the 
                remaining portions of a partially filled prescription 
                for a controlled substance in schedule II--
                            ``(i) may be filled; and
                            ``(ii) shall be filled not later than 72 
                        hours after the prescription is issued.''.
    (b) Rule of Construction.--Nothing in this section shall be 
construed to affect the authority of the Attorney General to allow a 
prescription for a controlled substance in schedule III, IV, or V of 
section 202(c) of the Controlled Substances Act (21 U.S.C. 812(c)) to 
be partially filled.

            Passed the House of Representatives May 11, 2016.

            Attest:

                                                 KAREN L. HAAS,

                                                                 Clerk.

SOLUTION: Opioid Use Disorder Treatment Expansion and Modernization Act (Sec. 3) This bill amends the Controlled Substances Act to revise the requirements for a practitioner to administer, dispense, or prescribe narcotic drugs for maintenance or detoxification treatment in an office-based opioid treatment program. Currently, a practitioner must notify the Department of Health and Human Services (HHS) and certify that he or she is a qualifying physician (i.e., a state-licensed physician with certain expertise), has the capacity to refer patients for appropriate counseling and ancillary services, and will comply with a patient limit. The patient limit is how many patients the practitioner can treat under the office-based treatment program at one time. This legislation expands qualifying practitioners to include nurse practitioners and physician assistants who are licensed in a state, have expertise (such as relevant training or expertise), and prescribe medications for opioid use disorder in collaboration with or under the supervision of a qualifying physician if state law requires physician oversight of prescribing authority. Additionally, it requires a qualifying practitioner to also certify that he or she will comply with reporting requirements and has the capacity to provide directly or by referral, or in another manner prescribed by HHS, all drugs approved by the Food and Drug Administration to treat opioid use disorder. HHS may issue regulations to change the maximum patient limit for a qualifying practitioner. If HHS increases the limit, then a qualifying practitioner must additionally certify that he or she will obtain written consent from each patient regarding available treatment options. HHS must update the treatment improvement protocol containing best practice guidelines for the treatment of opioid-dependent patients in office-based settings. HHS may recommend revoking or suspending the registration of a practitioner who fails to comply with the requirements of this Act. (Sec. 4) The bill expresses the sense of Congress that HHS should consider raising from 100 to 250 the maximum patient limit for a qualifying physician. (Sec. 5) It amends the Controlled Substances Act to allow a pharmacist to partially fill a prescription for a schedule II controlled substance (such as a prescription opioid painkiller) if: (1) it is not prohibited by state law, (2) it is prescribed in accordance with existing laws and regulations, (3) it is requested by the patient or prescribing practitioner, and (4) the total quantity dispensed in partial fillings does not exceed the total quantity prescribed. Additionally, a pharmacist may partially fill a prescription for a schedule II controlled substance in other circumstances in accordance with existing Drug Enforcement Administration (DEA) regulations. (Current DEA regulations permit partial fills when a pharmacist cannot supply a full quantity, a patient resides in a long-term care facility, or a patient is terminally ill.) The remaining of a partially filled prescription may be filled within 30 days or, in the case of an emergency situation, within 72 hours.

PROBLEM: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``ESOP Promotion Act of 1997''.

SEC. 2. PROVISIONS RELATING TO S CORPORATIONS ESTABLISHING EMPLOYEE 
              STOCK OWNERSHIP PLANS.

    (a) Repeal of Provision Making Certain ESOP Benefits Inapplicable 
to S Corporations.--Section 1316(d) of the Small Business Job 
Protection Act of 1996 is repealed, and the Internal Revenue Code of 
1986 shall be applied and administered as if the amendments made by 
such section had not been enacted.
    (b) Repeal of Application of Unrelated Business Income Tax.--
Section 512(e) of the Internal Revenue Code of 1986 is amended--
            (1) by striking ``described in section 1361(c)(7)'' in 
        paragraph (1) and inserting ``described in section 501(c)(3) 
        and exempt from taxation under section 501(a)'', and
            (2) by inserting ``Charitable Organizations Holding Stock 
        in'' after ``Applicable to'' in the heading.
    (c) ESOPs Allowed To Distribute Cash Rather Than Stock.--
            (1) In general.--Section 409(h)(2) of the Internal Revenue 
        Code of 1986 is amended by adding at the end the following new 
        subparagraph:
                    ``(8) Plan maintained by s corporation.--In the 
                case of a plan established and maintained by an S 
                corporation which otherwise meets the requirements of 
                this subsection or section 4975(e)(7), such plan shall 
                not be treated as failing to meet the requirements of 
                this subsection or section 401(a) merely because it 
                does not permit a participant to exercise the right 
                described in paragraph (1)(A) if such plan provides 
                that the participant entitled to a distribution from 
                the plan shall have a right to receive the distribution 
                in cash.''
            (2) Conforming amendments.--Section 409(h)(2) of such Code 
        is amended--
                    (A) by striking ``A plan'' and inserting:
                    ``(A) In general.--A plan'', and
                    (B) by striking ``In the case of an employer'' and 
                inserting:
                    ``(B) Plans restricted by charter or bylaws.--In 
                the case of an employer''.
    (d) Exemptions From Prohibited Transaction Rules Available to ESOPs 
and Shareholder Employees.--The last sentence of section 408(d) of the 
Employee Retirement Income Security Act of 1974 (29 U.S.C. 1108(d)) is 
amended by striking all that precedes ``a participant or beneficiary'' 
and inserting ``For purposes of this subsection,''.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1997.

SEC. 3. AMENDMENTS RELATED TO SECTION 1042.

    (a) Extension of Section 1042 Principles to Stock Received as 
Compensation for Services.--
            (1) In general.--Section 83 of the Internal Revenue Code of 
        1986 (relating to property transferred in connection with 
        performance of services) is amended by adding at the end the 
        following new subsection:
    ``(i) Exception for Transfers of Qualified Securities Sold to 
Employee Stock Ownership Plans.--
            ``(1) Exclusion from income.--Subsections (a) and (b) shall 
        not apply to, and no amount shall be includible in gross income 
        with respect to, the transfer of any qualified security (as 
        defined in section 1042(c)(1)) in connection with the 
        performance of services if, and to the extent that, within 60 
        days after the event which would cause the recognition of 
        income pursuant to subsection (a) or (b) but for this 
        subsection, the transferee sells such qualified security to an 
        employee stock ownership plan (as defined in section 
        4975(e)(7)) and the requirements of section 1042(a) are met 
        with respect to such sale.
            ``(2) No deduction by employer.--Notwithstanding the 
        provisions of subsection (h), the person for whom the services 
        were performed in connection with which any qualified security 
        is transferred shall not be entitled to a deduction with 
        respect to such transfer if, and to the extent that, paragraph 
        (1) applies to such transfer.''
            (2) Conforming amendments.--
                    (A) Section 424(c)(1) of such Code is amended by 
                striking ``or'' at the end of subparagraph (B), by 
                striking the period at the end of subparagraph (C) and 
                inserting ``, or'', and by adding at the end the 
                following new subparagraph:
                    ``(D) a sale to which section 1042 applies.''
                    (B) Section 1042(a) of such Code is amended--
                            (i) by striking ``which would be recognized 
                        as long-term capital gain'' from the first 
                        sentence thereof, and
                            (ii) by adding at the end the following new 
                        sentence: ``Any gain which is recognized after 
                        the application of the preceding sentence shall 
                        be treated as ordinary income to the extent of 
                        the lesser of the amount of such gain or the 
                        amount which would have been treated as 
                        ordinary income but for this section.''
                    (C) Section 1042(b)(4) of such Code is amended by 
                adding at the end the following new sentence: ``The 
                requirements of the preceding sentence shall not apply 
                to qualified securities received by the taxpayer in a 
                transfer to which section 83 or 422 applied (or to 
                which section 422 or 424 (as in effect on the day 
                before the date of enactment of the Revenue 
                Reconciliation Act of 1990) applied).''
                    (D) Section 1042(c)(1)(B) of such Code is amended 
                to read as follows:
                    ``(B) were not received by the taxpayer in--
                            ``(i) a distribution from a plan described 
                        in section 401(a), or
                            ``(ii) a transfer pursuant to a right to 
                        acquire stock to which section 423 applied.''
                    (E) The first sentence of section 1042(d) of such 
                Code is amended to read as follows: ``The basis of the 
                taxpayer in qualified replacement property purchased by 
                the taxpayer during the replacement period shall be 
                reduced by the amount of gain not recognized by virtue 
                of such purchase, taking into account the application 
                of subsection (a) and, if applicable, the application 
                of section 83(i) or section 424(c)(1)(D).''
                    (F) Section 1042(e)(1) of such Code is amended to 
                read as follows:
            ``(1) In general.--If a taxpayer disposes of any qualified 
        replacement property, then, notwithstanding any other provision 
        of this title, gain (if any) shall be recognized to the extent 
        of the gain which was not recognized by reason of the 
        acquisition by such taxpayer of such qualified replacement 
        property, taking into account the application of subsection (a) 
        and, if applicable, the application of section 83(i) or 
        424(c)(1)(D). Such gain shall be treated as ordinary income to 
        the extent of the excess (if any) of the amount which would 
        have been treated as ordinary income but for the application of 
        such sections over the amount treated as ordinary income under 
        the last sentence of subsection (a).''
            (3) Effective date.--The amendments made by this subsection 
        shall apply to sales of qualified securities on or after the 
        date of the enactment of this Act.
    (b) Modification to 25-Percent Shareholder Rule.--
            (1) In general.--Section 409(n)(1)(B) of such Code is 
        amended to read as follows:
                    ``(B) for the benefit of any other person who owns 
                (after the application of section 318(a)) more than 25 
                percent of--
                            ``(i) the total combined voting power of 
                        all classes of stock of the corporation which 
                        issued such employer securities or of any 
                        corporation which is a member of the same 
                        controlled group of corporations (within the 
                        meaning of subsection (l)(4)) as such 
                        corporation, or
                            ``(ii) the total value of all classes of 
                        stock of any such corporation.''
            (2) Effective date.--The amendment made by paragraph (1) 
        shall take effect on the date of the enactment of this Act.

SEC. 4. ESOP DIVIDENDS MAY BE REINVESTED WITHOUT LOSS OF DIVIDEND 
              DEDUCTION.

    (a) In General.--Section 404(k)(2)(A) of the Internal Revenue Code 
of 1986 (defining applicable dividends) is amended by striking ``or'' 
at the end of clause (ii), by redesignating clause (iii) as clause 
(iv), and by inserting after clause (ii) the following new clause:
                            ``(iii) is, at the election of such 
                        participants or their beneficiaries--
                                    ``(I) payable as provided in clause 
                                (i) or (ii), or
                                    ``(II) paid to the plan and 
                                reinvested in qualifying employer 
                                securities, or''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1997.

SOLUTION:
ESOP Promotion Act of 1997 - Repeals provisions of the Small Business Job Protection Act of 1996 which made certain employee stock ownership plan (ESOP) benefits inapplicable to S corporations (certain small business corporations). 
Excludes from gross income transfers of qualified securities in connection with the performance of services if such securities are sold to an ESOP within 60 days of the taxable event. 
Permits ESOP dividends to be reinvested without losing the dividend deduction.