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SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE.

    (a) Short Title.--This Act may be cited as the ``Tobacco Smuggling 
Eradication Act of 2002''.

          TITLE I--AMENDMENTS TO INTERNAL REVENUE CODE OF 1986

SEC. 101. AMENDMENT OF 1986 CODE.

    Except as otherwise expressly provided, whenever in this title an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall be considered to 
be made to a section or other provision of the Internal Revenue Code of 
1986.

SEC. 102. IMPROVED MARKING AND LABELING.

    (a) In General.--Subsection (b) of section 5723 (relating to marks, 
labels, and notices) is amended--
            (1) by striking ``, if any,'' and
            (2) by adding at the end the following: ``Such marks, 
        labels, and notices shall include marks and notices relating to 
        the following:
            ``(1) Identification.--The Secretary shall promulgate 
        regulations that require each manufacturer or importer of 
        tobacco products to legibly print a unique serial number on all 
        packages of tobacco products manufactured or imported for sale 
        or distribution. Such serial number shall be designed to enable 
        the Secretary to identify the manufacturer or importer of the 
        product, and the location and date of manufacture or 
        importation. The Secretary shall determine the size and 
        location of the serial number.
            ``(2) Marking requirements for exports.--Each package of a 
        tobacco product that is exported shall be marked for export 
        from the United States. The Secretary shall promulgate 
        regulations to determine the size and location of the mark and 
        under what circumstances a waiver of this paragraph shall be 
        granted.''.
    (b) Sales on Indian Reservations.--Section 5723 is amended by 
adding at the end the following new subsections:
    ``(f) Sales on Indian Reservations.--The Secretary, in consultation 
with the Secretary of the Interior, shall promulgate regulations that 
require that each package of a tobacco product that is sold on an 
Indian reservation (as defined in section 403(9) of the Indian Child 
Protection and Family Violence Prevention Act (25 U.S.C. 3202(9)) be 
labeled as such. Such regulations shall include requirements for the 
size and location of the label.
    ``(g) Definition of Package.--For purposes of this section, the 
term `package' means the innermost sealed container irrespective of the 
material from which such container is made, in which a tobacco product 
is placed by the manufacturer and in which such tobacco product is 
offered for sale to a member of the general public.''.

SEC. 103. WHOLESALERS REQUIRED TO HAVE PERMIT.

    Section 5712 (relating to application for permit) is amended by 
inserting ``, wholesaler,'' after ``manufacturer''.

SEC. 104. CONDITIONS OF PERMIT.

    Subsection (a) of section 5713 (relating to issuance of permit) is 
amended to read as follows:
    ``(a) Issuance.--
            ``(1) In general.--A person shall not engage in business as 
        a manufacturer, wholesaler, or importer of tobacco products or 
        as an export warehouse proprietor without a permit to engage in 
        such business. Such permit shall be issued in such form and in 
        such manner as the Secretary shall by regulation prescribe, to 
        every person properly qualified under sections 5711 and 5712. A 
        new permit may be required at such other time as the Secretary 
        shall by regulation prescribe.
            ``(2) Conditions.--The issuance of a permit under this 
        section shall be conditioned upon the compliance with the 
        requirements of this chapter and the Contraband Cigarette 
        Trafficking Act (18 U.S.C. chapter 114), and any regulations 
        issued pursuant to such statutes.''.

SEC. 105. RECORDS TO BE MAINTAINED.

    Section 5741 (relating to records to be maintained) is amended--
            (1) by inserting ``(a) In General.--'' before ``Every 
        manufacturer'',
            (2) by inserting ``every wholesaler,'' after ``every 
        importer,'',
            (3) by striking ``such records'' and inserting ``records 
        concerning the chain of custody of the tobacco products and 
        such other records'', and
            (4) by adding at the end the following new subsection:
    ``(b) Retailers.--Retailers shall maintain records of receipt of 
tobacco products, and such records shall be available to the Secretary 
for inspection and audit. An ordinary commercial record or invoice 
shall satisfy the requirements of this subsection if such record shows 
the date of receipt, from whom tobacco products were received, and the 
quantity of tobacco products received.''.

SEC. 106. REPORTS.

    Section 5722 (relating to reports) is amended--
            (1) by inserting ``(a) In General.--'' before ``Every 
        manufacturer'', and
            (2) by adding at the end the following new subsection:
    ``(b) Reports By Export Warehouse Proprietors.--
            ``(1) In general.--Prior to exportation of tobacco products 
        from the United States, the export warehouse proprietor shall 
        submit a report (in such manner and form as the Secretary may 
        by regulation prescribe) to enable the Secretary to identify 
        the shipment and assure that it reaches its intended 
        destination.
            ``(2) Agreements with foreign governments.--Notwithstanding 
        section 6103 of this title, the Secretary is authorized to 
        enter into agreements with foreign governments to exchange or 
        share information contained in reports received from export 
        warehouse proprietors of tobacco products if--
                    ``(A) the Secretary believes that such agreement 
                will assist in--
                            ``(i) ensuring compliance with the 
                        provisions of this chapter or regulations 
                        promulgated thereunder, or
                            ``(ii) preventing or detecting violations 
                        of the provisions of this chapter or 
                        regulations promulgated thereunder, and
                    ``(B) the Secretary obtains assurances from such 
                government that the information will be held in 
                confidence and used only for the purposes specified in 
                clauses (i) and (ii) of subparagraph (A).
        No information may be exchanged or shared with any government 
        that has violated such assurances.''.

SEC. 107. FRAUDULENT OFFENSES.

    (a) In General.--Subsection (a) of section 5762 (relating to 
fraudulent offenses) is amended by striking paragraph (1) and 
redesignating paragraphs (2) through (6) as paragraphs (1) through (5), 
respectively.
    (b) Offenses Relating to Distribution of Tobacco Products.--Section 
5762 is amended--
            (1) by redesignating subsection (b) as subsection (c),
            (2) in subsection (c) (as so redesignated), by inserting 
        ``or (b)'' after ``(a)'', and
            (3) by inserting after subsection (a) the following new 
        subsection:
    ``(b) Offenses Relating to Distribution of Tobacco Products.--It 
shall be unlawful--
            ``(1) for any person to engage in the business as a 
        manufacturer or importer of tobacco products or cigarette 
        papers and tubes, or to engage in the business as a wholesaler 
        or an export warehouse proprietor, without filing the bond and 
        obtaining the permit where required by this chapter or 
        regulations thereunder;
            ``(2) for a manufacturer, importer, or wholesaler permitted 
        under this chapter intentionally to ship, transport, deliver, 
        or receive any tobacco products from or to any person other 
        than a person permitted under this chapter or a retailer, 
        except a permitted importer may receive foreign tobacco 
        products from a foreign manufacturer or a foreign distributor 
        that have not previously entered the United States;
            ``(3) for any person (other than the original manufacturer 
        of such tobacco products or an export warehouse proprietor 
        authorized to receive any tobacco products that have previously 
        been exported and returned to the United States) to receive any 
        tobacco products that have previously been exported and 
        returned to the United States;
            ``(4) for any export warehouse proprietor intentionally to 
        ship, transport, sell, or deliver for sale any tobacco products 
        to any person other than the original manufacturer of such 
        tobacco products, another export warehouse proprietor, or a 
        foreign purchaser;
            ``(5) for any person (other than a manufacturer or an 
        export warehouse proprietor permitted under this chapter) 
        intentionally to ship, transport, receive, or possess, for 
        purposes of resale, any tobacco product in packages marked 
        pursuant to regulations issued under section 5723, other than 
        for direct return to a manufacturer for repacking or for re-
        exportation or to an export warehouse proprietor for re-
        exportation;
            ``(6) for any manufacturer, importer, export warehouse 
        proprietor, or wholesaler permitted under this chapter to make 
        intentionally any false entry in, to fail willfully to make 
        appropriate entry in, or to fail willfully to maintain properly 
        any record or report that such person is required to keep as 
        required by this chapter or the regulations promulgated 
        thereunder; and
            ``(7) for any person to alter, mutilate, destroy, 
        obliterate, or remove any mark or label required under this 
        chapter upon a tobacco product held for sale, except pursuant 
        to regulations of the Secretary authorizing relabeling for 
        purposes of compliance with the requirements of this section or 
        of State law.
Any person violating any of the provisions of this subsection shall, 
upon conviction, be fined as provided in section 3571 of title 18, 
United States Code, imprisoned for not more than 5 years, or both.''.
    (c) Intentionally Defined.--Section 5762 is amended by adding at 
the end the following:
    ``(d) Definition of Intentionally.--For purposes of this section 
and section 5761, the term `intentionally' means doing an act, or 
omitting to do an act, deliberately, and not due to accident, 
inadvertence, or mistake, regardless of whether the person knew that 
the act or omission constituted an offense.''.

SEC. 108. CIVIL PENALTIES.

    Subsection (a) of section 5761 (relating to civil penalties) is 
amended--
            (1) by striking ``willfully'' and inserting 
        ``intentionally'', and
            (2) by striking ``$1,000'' and inserting ``$10,000''.

SEC. 109. DEFINITIONS.

    (a) Export Warehouse Proprietor.--Subsection (i) of section 5702 
(relating to definition of export warehouse proprietor) is amended by 
inserting before the period the following: ``or any person engaged in 
the business of exporting tobacco products from the United States for 
purposes of sale or distribution. Any duty free store that sells, 
offers for sale, or otherwise distributes to any person in any single 
transaction more than 30 packages of cigarettes, or its equivalent for 
other tobacco products as the Secretary shall by regulation prescribe, 
shall be deemed an export warehouse proprietor under this chapter''.
    (b) Retailer; Wholesaler.--Section 5702 is amended by adding at the 
end the following:
    ``(p) Retailer.--The term `retailer' means any dealer who sells, or 
offers for sale, any tobacco product at retail. The term `retailer' 
includes any duty-free store that sells, offers for sale, or otherwise 
distributes at retail in any single transaction 30 or less packages, or 
its equivalent for other tobacco products.
    ``(q) Wholesaler.--The term `wholesaler' means any person engaged 
in the business of purchasing tobacco products for resale at wholesale, 
or any person acting as an agent or broker for any person engaged in 
the business of purchasing tobacco products for resale at wholesale.''.

SEC. 110. EFFECTIVE DATE.

    The amendments made by this title shall take effect on January 1, 
2003.

    TITLE II--AMENDMENTS TO THE CONTRABAND CIGARETTE TRAFFICKING ACT

SEC. 201. AMENDMENTS TO THE CONTRABAND CIGARETTE TRAFFICKING ACT.

    (a) Definitions.--Section 2341 of title 18, United States Code, is 
amended--
            (1) in paragraph (2)--
                    (A) by striking ``60,000'' and inserting 
                ``30,000'', and
                    (B) by inserting ``or importer'' after ``as a 
                manufacturer'';
            (2) in paragraph (4), by striking ``and'' at the end;
            (3) in paragraph (5), by striking the period and inserting 
        a semicolon; and
            (4) by adding at the end the following:
            ``(6) the term `tobacco product' means cigars, cigarettes, 
        smokeless tobacco, and pipe tobacco (as such terms are defined 
        in section 5701 of the Internal Revenue Code of 1986); and
            ``(7) the term `contraband tobacco product' means a 
        quantity of tobacco product that is equivalent to or more than 
        30,000 cigarettes as determined by regulation, which bear no 
        evidence of the payment of applicable State tobacco taxes in 
        the State where such tobacco products are found, if such State 
        requires a stamp, impression, or other indication to be placed 
        on packages or other containers of product to evidence payment 
        of tobacco taxes.''
    (b) Unlawful Acts.--Section 2342 of title 18, United States Code, 
is amended--
            (1) in subsection (a), by inserting ``or contraband tobacco 
        products'' before the period;
            (2) by amending subsection (b) to read as follows:
    ``(b)(1) It shall be unlawful for any person--
            ``(A) knowingly to make any false statement or 
        representation with respect to the information required by this 
        chapter to be kept in the records or reports of any person who 
        ships, sells, or distributes--
                    ``(i) any quantity of cigarettes in excess of 
                30,000 in a single transaction or in a series of 
                related transactions, or
                    ``(ii) tobacco products in such equivalent 
                quantities as shall be determined by regulation, or
            ``(B) knowingly to fail to maintain records or reports, 
        alter or obliterate required markings, or interfere with any 
        inspection, required under this chapter, with respect to such 
        quantity of cigarettes or other tobacco products.''; and
            (3) by adding at the end the following:
    ``(c) It shall be unlawful for any person knowingly to transport 
tobacco products under a false bill of lading or without any bill of 
lading.''.
    (c) Recordkeeping.--Section 2343 of title 18, United States Code, 
is amended--
            (1) in subsection (a), by striking ``60,000 in a single 
        transaction'' and inserting ``30,000 in a single transaction or 
        in a series of related transactions, or, in the case of other 
        tobacco products an equivalent quantity as determined by 
        regulation,'';
            (2) by amending the last sentence of subsection (a) to read 
        as follows: ``Except as provided in subsection (c) of this 
        section, nothing contained herein shall authorize the Secretary 
        to require reporting under this section.'';
            (3) in subsection (b), by striking ``60,000 in a single 
        transaction'' and inserting ``30,000 in a single transaction or 
        in a series of related transactions, or, in the case of other 
        tobacco products an equivalent quantity as determined by 
        regulation,''; and
            (4) by adding at the end the following:
    ``(c)(1) Any person who ships, sells, or distributes tobacco 
products for resale in interstate commerce, whereby such tobacco 
products are shipped into a State taxing the sale or use of such 
tobacco products or who advertises or offers tobacco products for such 
sale or transfer and shipment shall--
            ``(A) first file with the tobacco tax administrator of the 
        State into which such shipment is made or in which such 
        advertisement or offer is disseminated, a statement setting for 
        the person's name, and trade name (if any), and the address of 
        the person's principal place of business and of any other place 
        of business; and
            ``(B) not later than the 10th of each calendar month, file 
        with the tobacco tax administrator of the State into which such 
        shipment is made a memorandum or a copy of the invoice covering 
        each and every shipment of tobacco products made during the 
        previous calendar month into such State; the memorandum or 
        invoice in each case to include the name and address of the 
        person to whom the shipment was made, the brand, and the 
        quantity thereof.
    ``(2) The fact that any person ships or delivers for shipment any 
tobacco products shall, if such shipment is into a State in which such 
person has filed a statement with the tobacco tax administrator under 
paragraph (1)(A) of this subsection, be presumptive evidence that such 
tobacco products were sold, shipped, or distributed for resale by such 
person.
    ``(3) For purposes of this subsection--
            ``(A) the term `use' in addition to its ordinary meaning, 
        means consumption, storage, handling, or disposal of tobacco 
        products; and
            ``(B) the term `tobacco tax administrator' means the State 
        official authorized to administer tobacco tax laws of the 
        State.''.
    (d) Penalties.--Section 2344 of title 18, United States Code, is 
amended--
            (1) in subsection (b), by inserting ``or (c)'' after 
        ``section 2342(b)'' and by inserting ``or (c)'' after section 
        2343(a)''; and
            (2) by striking subsection (c) and inserting the following 
        new subsection:
    ``(c) Any contraband cigarettes or contraband tobacco products 
involved in any violation of the provisions of this chapter shall be 
subject to seizure and forfeiture, and all provisions of section 
9703(o) of title 31, United States Code, shall, so far as applicable, 
extend to seizures and forfeitures under the provisions of this 
chapter.''
    (e) Repeal.--The Act of October 19, 1949, entitled ``An Act to 
assist States in collecting sales and use taxes on cigarettes'', 63 
Stat. 884 (chapter 10A of title 15, U.S.C.), is hereby repealed.
Tobacco Smuggling Eradication Act of 2002 - Amends chapter 52 (Tobacco Products and Cigarette Papers and Tubes) of the Internal Revenue Code to require all packages of tobacco products to carry a unique legibly printed serial number by which the Secretary of the Treasury can identify the manufacturer or importer and the location and date of manufacture or importation. Requires tobacco products sold on Indian reservations to be labeled as such.Requires a tobacco wholesaler to have a permit and to maintain certain records.Requires export warehouse proprietors to file certain reports with the Secretary. Authorizes the Secretary to enter into certain tobacco related information agreements with foreign countries.Establishes new offenses relating to the distribution of tobacco.Raises the $1,000 civil penalty under chapter 52 to $10,000.Amends the Contraband Cigarette Trafficking Act to: (1) expand the applicability of such Act from cigarettes only to "tobacco product" (cigars, cigarettes, smokeless tobacco, and pipe tobacco); (2) define "contraband tobacco product" as a quantity of tobacco product that is equivalent to or more than 30,000 cigarettes (currently, 60,000) which bear no evidence of the payment of applicable State tobacco taxes; (3) establish new unlawful acts; and (4) require additional recordkeeping.Repeals Federal law provisions concerning reports required to State tobacco tax administrators by individuals engaged in interstate cigarette commerce.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Family Investment Package''.

SEC. 2. ASSISTANCE FOR LOW-INCOME WORKING FAMILIES.

    (a) Block Grants.--Section 658B of the Child Care Development Block 
Grant Act of 1990 (42 U.S.C. 9858) is amended to read as follows:

``SEC. 658B. FUNDING OF GRANTS.

    ``(a) Authorization of Appropriations.--Except as provided in 
subsection (b), there is authorized to be appropriated to carry out 
this subchapter $2,000,000,000 for each of fiscal years 1997 through 
2002.
    ``(b) Appropriation.--The Secretary shall pay, from funds in the 
Treasury not otherwise appropriated, $1,400,000,000 for fiscal years 
1997 through 2002, through the awarding of grants to States under this 
subchapter for the purpose of providing child care services for 
families who have left the State program of assistance under part A of 
title IV of the Social Security Act because of employment, families 
that are at risk of becoming dependent on such assistance program, and 
low-income working families described in section 658E(c)(3)(D). Funds 
shall be paid under this subsection to the States in the same manner, 
and subject to the same requirements and limitations, as funds are paid 
to the States under section 418 of the Social Security Act (42 U.S.C. 
618).''.
    (b) Grants for Child Care Supply Shortages.--Section 658E(c)(3) of 
the Child Care Development Block Grant Act of 1990 (42 U.S.C. 
9858c(c)(3)) is amended by adding at the end the following:
                    ``(E) Child care supply shortages.--
                            ``(i) In general.--A State shall ensure 
                        that 100 percent of amounts paid to the State 
                        out of funds appropriated under section 
                        658B(a)(2) with respect to each of the fiscal 
                        years 1997 through 2002 shall be used to carry 
                        out child care activities described in clause 
                        (ii) in geographic areas within the State that 
                        have a shortage, as determined by the State, in 
                        consultation with localities, of child care 
                        services.
                            ``(ii) Child care activities described.--
                        The child care activities described in this 
                        clause include the following:
                                    ``(I) Infant care programs.
                                    ``(II) Before- and after-school 
                                child care programs.
                                    ``(III) Resource and referral 
                                programs.
                                    ``(IV) Nontraditional work hours 
                                child care programs.
                                    ``(V) Extending the hours of pre-
                                kindergarten programs to provide full-
                                day services.
                                    ``(VI) Any other child care 
                                programs that the Secretary determines 
                                are appropriate.''.
    (c) Authorization of Appropriations for Low-Income Working 
Families.--
            (1) In general.--Section 658B(a) of the Child Care 
        Development Block Grant Act of 1990 (42 U.S.C. 9858(a)), as 
        amended by subsection (f), is amended--
                    (A) by striking ``Except as provided in'' and 
                inserting the following:
            ``(1) In general.--Except as provided in paragraph (2) 
        and''; and
                    (B) by adding at the end the following:
            ``(2) Child care supply shortages.--There is authorized to 
        be appropriated to carry out section 658E(c)(3)(E), 
        $500,000,000 for each of fiscal years 1997 through 2002.''.
            (2) Conforming amendment.--Section 658(c)(3)(A) of the 
        Child Care Development Block Grant Act of 1990 (42 U.S.C. 
        9858c(c)(3)(A)) is amended by striking ``(D)'' and inserting 
        ``(E)''.
    (d) Report on Access to Child Care by Low-Income Working 
Families.--
            (1) In general.--Section 658K(a)(2) of the Child Care 
        Development Block Grant Act of 1990 (42 U.S.C. 9858i(a)(2)) is 
        amended--
                    (A) in subparagraph (D), by striking ``and'' at the 
                end; and
                    (B) by inserting after subparagraph (E), the 
                following:
                    ``(F) the total number of families described in 
                section 658B(b) that were eligible for but did not 
                receive assistance under this subchapter or under 
                section 418 of the Social Security Act and a 
                description of the obstacles to providing such 
                assistance; and
                    ``(G) the total number of families described in 
                section 658B(b) that received assistance provided under 
                this subchapter or under section 418 of the Social 
                Security Act and a description of the manner in which 
                that assistance was provided;''.
            (2) Secretarial reporting requirement.--Section 658L of the 
        Child Care Development Block Grant Act of 1990 (42 U.S.C. 
        9858j) is amended by inserting ``, with particular emphasis on 
        access of low-income working families,'' after ``public''.
    (e) Effective Date.--The amendments made by this section shall take 
effect as if included in the enactment of the Personal Responsibility 
and Work Opportunity Reconciliation Act of 1996 (Public Law 104-193, 
110 Stat. 2105).
Family Investment Package - Amends the Child Care Development Block Grant Act of 1990 to increase the authorization of appropriations for FY 1997 through 2002 for block grants to States for child care assistance for low-income working families. 
Authorizes separate appropriations for such period for grants to States for specified child care activities in geographic areas with child care supply shortages. 
Authorizes appropriations in a specified amount to the Secretary of Health and Human Services for FY 1997 through 2002 to award grants to States for providing child care services for families who have left the State program of assistance under part A (Temporary Assistance for Needy Families) of title IV of the Social Security Act because of employment, families that are at risk of becoming dependent on such assistance program, and low-income working families. 
Requires States and the Secretary to report on access to child care by low-income working families.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Chesapeake Bay Watershed Forestry 
Program Act of 2005''.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds that--
            (1) trees and forests are critical to the long-term health 
        and proper ecological functioning of the Chesapeake Bay and the 
        Chesapeake Bay watershed;
            (2) the Chesapeake Bay States are losing forest land to 
        urban and suburban growth at a rate of nearly 100 acres per 
        day;
            (3) the Forest Service has a vital role to play in 
        assisting States, local governments, and nonprofit 
        organizations in carrying out forest conservation, restoration, 
        and stewardship projects and activities; and
            (4) existing programs do not ensure the support necessary 
        to meet Chesapeake Bay forest goals.
    (b) Purposes.--The purposes of this Act are--
            (1) to expand and strengthen cooperative efforts to 
        protect, restore, and manage forests in the Chesapeake Bay 
        watershed; and
            (2) to contribute to the achievement of the goals of the 
        Chesapeake Bay Agreement.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Chesapeake bay agreement.--The term ``Chesapeake Bay 
        Agreement'' means the formal, voluntary agreements--
                    (A) executed to achieve the goal of restoring and 
                protecting the Chesapeake Bay ecosystem and the living 
                resources of the Chesapeake Bay ecosystem; and
                    (B) signed by the Council.
            (2) Chesapeake bay state.--The term ``Chesapeake Bay 
        State'' means each of the States of Delaware, Maryland, New 
        York, Pennsylvania, Virginia, and West Virginia and the 
        District of Columbia.
            (3) Coordinator.--The term ``Coordinator'' means the 
        Coordinator of the program designated under section 4(b)(1)(B).
            (4) Council.--The term ``Council'' means the Chesapeake Bay 
        Executive Council.
            (5) Program.--The term ``program'' means the Chesapeake Bay 
        watershed forestry program carried out under section 4(a).
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture, acting through the Chief of the Forest Service 
        and the Coordinator.

SEC. 4. CHESAPEAKE BAY WATERSHED FORESTRY PROGRAM.

    (a) In General.--The Secretary shall carry out a Chesapeake Bay 
watershed forestry program under which the Secretary shall make grants 
and provide technical assistance to eligible entities to restore and 
conserve forests in the Chesapeake Bay watershed, including grants and 
assistance--
            (1) to promote forest conservation, restoration, and 
        stewardship efforts in urban, suburban, and rural areas of the 
        Chesapeake Bay watershed;
            (2) to accelerate the restoration of riparian forest 
        buffers in the Chesapeake Bay watershed;
            (3) to assist in developing and carrying out projects and 
        partnerships in the Chesapeake Bay watershed;
            (4) to promote the protection and sustainable management of 
        forests in the Chesapeake Bay watershed;
            (5) to develop communication and education resources that 
        enhance public understanding of the value of forests in the 
        Chesapeake Bay watershed;
            (6) to conduct research, assessment, and planning 
        activities to restore and protect forest land in the Chesapeake 
        Bay watershed; and
            (7) to contribute to the achievement of the goals of the 
        Chesapeake Bay Agreement.
    (b) Office; Coordinator.--
            (1) In general.--The Secretary shall--
                    (A) maintain an office within the Forest Service to 
                carry out the program; and
                    (B) designate an employee of the Forest Service as 
                Coordinator of the program.
            (2) Duties.--As part of the program, the Coordinator, in 
        cooperation with the Secretary and the Chesapeake Bay Program, 
        shall--
                    (A) provide grants and technical assistance to 
                restore and protect forests in the Chesapeake Bay 
                watershed;
                    (B) enter into partnerships to carry out forest 
                restoration and conservation activities at a watershed 
                scale using the resources and programs of the Forest 
                Service;
                    (C) in collaboration with other units of the Forest 
                Service, other Federal agencies, and State forestry 
                agencies, carry out activities that contribute to the 
                goals of the Chesapeake Bay Agreement;
                    (D) work with units of the National Forest System 
                in the Chesapeake Bay watershed to ensure that the 
                units are managed in a manner that--
                            (i) protects water quality; and
                            (ii) sustains watershed health;
                    (E) represent the Forest Service in deliberations 
                of the Chesapeake Bay Program; and
                    (F) support and collaborate with the Forestry Work 
                Group for the Chesapeake Bay Program in planning and 
                implementing program activities.
    (c) Eligible Entities.--To be eligible to receive assistance under 
the program, an entity shall be--
            (1) a Chesapeake Bay State;
            (2) a political subdivision of a Chesapeake Bay State;
            (3) a university or other institution of higher education;
            (4) an organization operating in the Chesapeake Bay 
        watershed that is described in section 501(c) of the Internal 
        Revenue Code of 1986 and is exempt from taxation under section 
        501(a) of that Code; or
            (5) any other person in the Chesapeake Bay watershed that 
        the Secretary determines to be eligible.
    (d) Grants.--
            (1) In general.--The Secretary shall make grants to 
        eligible entities under the program to carry out projects to 
        protect, restore, and manage forests in the Chesapeake Bay 
        watershed.
            (2) Federal share.--The Federal share of a grant made under 
        the program shall not exceed 75 percent, as determined by the 
        Secretary.
            (3) Types of projects.--The Secretary may make a grant to 
        an eligible entity for a project in the Chesapeake Bay 
        watershed that--
                    (A) improves habitat and water quality through the 
                establishment, protection, or stewardship of riparian 
                or wetland forests or stream corridors;
                    (B) builds the capacity of State forestry agencies 
                and local organizations to implement forest 
                conservation, restoration, and stewardship actions;
                    (C) develops and implements watershed management 
                plans that--
                            (i) address forest conservation needs; and
                            (ii) reduce urban and suburban runoff;
                    (D) provides outreach and assistance to private 
                landowners and communities to restore or conserve 
                forests in the watershed;
                    (E) implements communication, education, or 
                technology transfer programs that broaden public 
                understanding of the value of trees and forests in 
                sustaining and restoring the Chesapeake Bay watershed;
                    (F) coordinates and implements community-based 
                watershed partnerships and initiatives that--
                            (i) focus on--
                                    (I) the expansion of the urban tree 
                                canopy; and
                                    (II) the restoration or protection 
                                of forest land; or
                            (ii) integrate the delivery of Forest 
                        Service programs for restoring or protecting 
                        watersheds;
                    (G) provides enhanced forest resource data to 
                support watershed management;
                    (H) enhances upland forest health to reduce risks 
                to watershed function and water quality; or
                    (I) conducts inventory assessment or monitoring 
                activities to measure environmental change associated 
                with projects carried out under the program.
            (4) Chesapeake bay watershed foresters.--Funds made 
        available under section 6 may be used by a Chesapeake Bay State 
        to employ a State watershed forester to work with the 
        Coordinator to carry out activities and watershed projects 
        relating to the program.
    (e) Study.--
            (1) In general.--The Secretary, in consultation with the 
        Council, shall conduct a study of urban and rural forests in 
        the Chesapeake Bay watershed, including--
                    (A) an evaluation of the state, and threats to the 
                sustainability, of forests in the Chesapeake Bay 
                watershed;
                    (B) an assessment of forest loss and fragmentation 
                in the Chesapeake Bay watershed;
                    (C) an identification of forest land within the 
                Chesapeake Bay watershed that should be restored or 
                protected; and
                    (D) recommendations for expanded and targeted 
                actions or programs needed to achieve the goals of the 
                Chesapeake Bay Agreement.
            (2) Report.--Not later than 1 year after amounts are first 
        made available under section 6, the Secretary shall submit to 
        the Committee on Agriculture of the House of Representatives 
        and the Committee on Agriculture, Nutrition, and Forestry of 
        the Senate a report that describes the results of the study.

SEC. 5. WATERSHED FORESTRY RESEARCH PROGRAM.

    (a) In General.--The Secretary, in cooperation with the Council, 
shall establish a watershed forestry research program for the 
Chesapeake Bay watershed.
    (b) Administration.--In carrying out the watershed forestry 
research program established under subsection (a), the Secretary 
shall--
            (1) use a combination of applied research, modeling, 
        demonstration projects, implementation guidance, strategies for 
        adaptive management, training, and education to meet the needs 
        of the residents of the Chesapeake Bay States for managing 
        forests in urban, developing, and rural areas;
            (2) solicit input from local managers and Federal, State, 
        and private researchers, with respect to air and water quality, 
        social and economic implications, environmental change, and 
        other Chesapeake Bay watershed forestry issues in urban and 
        rural areas;
            (3) collaborate with the Chesapeake Bay Program Scientific 
        and Technical Advisory Committee and universities in the 
        Chesapeake Bay States to--
                    (A) address issues in the Chesapeake Bay Agreement; 
                and
                    (B) support modeling and informational needs of the 
                Chesapeake Bay program; and
            (4) manage activities of the watershed forestry research 
        program in partnership with the Coordinator.
    (c) Watershed Forestry Research Strategy.--Not later than 1 year 
after the date of enactment of this Act, the Secretary, in 
collaboration with the Northeastern Forest Research Station and the 
Southern Forest Research Station, shall submit to Congress a strategy 
for research to address Chesapeake Bay watershed goals, including 
recommendations for implementation and leadership of the program.

SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated to carry out the program 
$3,500,000 for each of fiscal years 2006 through 2012, of which--
            (1) not more than $500,000 shall be used to conduct the 
        study required under section 4(e); and
            (2) not more than $1,000,000 for any fiscal year shall be 
        used to carry out the watershed forestry research program under 
        section 5.

SEC. 7. REPORT.

    Not later than December 31, 2007, and annually thereafter, the 
Secretary shall submit to Congress a comprehensive report that 
describes the costs, accomplishments, and outcomes of the activities 
carried out under the program.

Chesapeake Bay Watershed Forestry Program Act of 2005 - Directs the Secretary of Agriculture, through the Forest Service and the program Coordinator, to carry out a Chesapeake Bay watershed forestry program under which the Secretary shall make grants and provide technical assistance to eligible entities to restore and conserve forests in the Chesapeake Bay watershed, including grants and assistance to: (1) promote forest conservation, restoration, and stewardship efforts; (2) accelerate the restoration of riparian forest buffers; (3) assist in developing and carrying out projects and partnerships; (4) promote the protection and sustainable management of forests; (5) develop public communication and education resources; (6) conduct forest research, assessment, and planning activities; and (7) contribute to the achievement Chesapeake Bay Agreement goals.

Directs the Secretary to designate a Forest Service employee as program Coordinator. Sets forth the Coordinator's responsibilities.

Defines an eligible entity as: (1) a Chesapeake Bay state (Delaware, Maryland, New York, Pennsylvania, Virginia, West Virginia and the District of Columbia), or a political subdivision thereof; (2) a university or other institution of higher education; (3) a tax-exempt organization operating in the Chesapeake Bay watershed; or (4) any other person in the Chesapeake Bay watershed determined by the Secretary as eligible.

Directs the Secretary to: (1) make grants (75% federal maximum) to such entities to carry out specified program projects; (2) conduct a study of urban and rural forests in the Chesapeake Bay watershed; and (3) establish a watershed forestry research program for the Chesapeake Bay watershed.

Authorizes the use of funds under this Act to employ a state watershed forester to work with the Coordinator.