In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
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Question: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``SSI Disability Reform Act of 1993''.

SEC. 2. REPRESENTATIVE PAYEE REFORMS.

    (a) Authority of Government Agencies to Become Paid Representative 
Payees.--Section 1631(a)(2)(D)(ii) of the Social Security Act (42 
U.S.C. 1383(a)(2)(D)(ii)) is amended by adding at the end the 
following: ``The term `qualified organization' also includes any 
government agency that meets the requirements of items (aa) and (bb) of 
subclause (II).''.
    (b) Maximum Fee Payable to Representative Payees.--Section 
1631(a)(2)(D)(i) of such Act (42 U.S.C. 1383(a)(2)(D)(i)) is amended by 
striking ``the lesser of--'' and all that follows and inserting ``10 
percent of the monthly benefit involved.''.

SEC. 3. REFORM OF SSI DISABILITY BENEFITS BASED ON SUBSTANCE ABUSE.

    (a) In General.--Section 1611(e)(3) of the Social Security Act (42 
U.S.C. 1382(e)(3)) is amended--
            (1) by striking all that precedes subparagraph (B) and 
        inserting the following:
    ``(3)(A) Notwithstanding paragraphs (1) and (2), a person who (but 
for this subparagraph) would be an eligible individual or eligible 
spouse for purposes of this title solely by reason of disability and 
who is medically determined to be a drug addict or an alcoholic shall 
not be such an eligible individual or eligible spouse until--
            ``(i) the person, through an outpatient rehabilitation 
        program, has undergone treatment appropriate for such condition 
        for 3 months at an institution or facility approved by the 
        Secretary for purposes of this paragraph, and has complied with 
        the terms, conditions, and requirements of such treatment and 
        with the requirements imposed under subparagraph (D); and
            ``(ii) the State in which the person resides determines 
        that--
                    ``(I) the person has made progress towards 
                recovery, or has recovered; or
                    ``(II) if the person has not made progress towards 
                recovery, the person meets such requirements 
                established in regulations as the Secretary deems 
                appropriate to effectuate the purposes of this 
                title.'';
            (2) by redesignating subparagraph (B) as subparagraph (D);
            (3) by inserting after the matter added by paragraph (1) of 
        this subsection the following:
    ``(B) If, after the 3-month treatment period referred to in 
subparagraph (A)(i), the State determines that the person has not 
recovered from the condition treated, then, as a condition of receiving 
benefits under this title by reason of disability, the person must 
continue to comply with the terms, conditions, and requirements of such 
treatment and with the requirements imposed under subparagraph (D), 
until recovery.
    ``(C)(i) A person who fails to continue treatment as required by 
subparagraph (B) shall not be an eligible individual or an eligible 
spouse for purposes of this title by reason of disability, until the 
person has completed 2 weeks of such treatment.
    ``(ii) A person who has become an eligible individual or an 
eligible spouse for purposes of this title by reason of disability 
after clause (i) has been applied to the person, and who fails to 
continue treatment as required by subparagraph (B), shall not be an 
eligible individual or an eligible spouse for purposes of this title by 
reason of disability, until the person has completed 2 months of such 
treatment.
    ``(iii) A person who has become an eligible individual or an 
eligible spouse for purposes of this title by reason of disability 
after clause (ii) has been applied to the person, and who fails to 
continue treatment as required by subparagraph (B), shall not again 
become an eligible individual or an eligible spouse for purposes of 
this title by reason of disability.''; and
            (4) by adding at the end the following:
    ``(E) The Secretary, in consultation with drug and alcohol 
treatment professionals, shall develop standards for drug and alcohol 
treatment programs, and in consultation with States, shall develop 
guidelines to be used to review and evaluate the progress of 
participants in such programs.''.
    (b) Preservation of Medicaid Benefits.--Section 1634 of such title 
(42 U.S.C. 1383c) is amended by adding at the end the following:
    ``(e) For purposes of title XIX, each person who is not an eligible 
individual or an eligible spouse solely by reason of section 1611(e)(3) 
shall be treated as receiving benefits under this title for so long as 
such person would be eligible for such benefits in the absence of such 
section.''.

SEC. 4. MANDATORY MEDICAID COVERAGE OF SUBSTANCE ABUSE TREATMENT 
              PROGRAMS FOR DISABLED SSI BENEFICIARIES.

    (a) In General.--Section 1905 of the Social Security Act (42 U.S.C. 
1396d) is amended--
            (1) in subsection (a)--
                    (A) by striking ``and'' at the end of paragraph 
                (21),
                    (B) by striking the comma at the end of paragraph 
                (24) and inserting a semicolon,
                    (C) by redesignating paragraphs (22), (23), and 
                (24) as paragraphs (25), (22), and (23), respectively, 
                and by transferring and inserting paragraph (25) after 
                paragraph (23), as so redesignated, and
                    (D) by inserting after paragraph (23) the following 
                new paragraph:
            ``(24) approved substance abuse treatment services for 
        certain disabled beneficiaries (as described in subsection 
        (t)(1)); and''; and
            (2) by adding at the end the following new subsection:
    ``(t)(1) For purposes of subsection (a)(24), approved substance 
abuse treatment services for certain disabled beneficiaries are 
services provided to an individual described in section 1611(e)(3)(A) 
through a program approved by the Secretary to provide substance abuse 
treatment services for purposes of enabling such individuals to meet 
the requirements of clause (i) of such section.
    ``(2) No payment shall be made under section 1903(a) to a State for 
medical assistance for approved substance abuse treatment services for 
certain disabled beneficiaries provided to any individual after the 3-
month period that begins on the date the individual first receives such 
services.''.
    (b) 100 Percent Federal Matching Rate.--The first sentence of 
section 1905(b) of such Act (42 U.S.C. 1396d(b)) is amended--
            (1) by inserting ``subject to clause (3),'' after ``except 
        that (1)'',
            (2) by striking ``and (2)'' and inserting ``(2)'', and
            (3) by inserting before the period at the end the 
        following: ``, and (3) subject to clause (2), the Federal 
        medical assistance percentage shall be 100 percent with respect 
        to expenditures as medical assistance for approved substance 
        abuse treatment services for certain disabled beneficiaries (as 
        described in section 1905(t)(1))''.
    (c) Conforming Amendments.--
            (1) Section 1902 of such Act (42 U.S.C. 1396a) is amended--
                    (A) in subsection (a)(10)(A) in the matter 
                preceding clause (i), by striking ``(17) and (21)'' and 
                inserting ``(17), (21), and (24)'';
                    (B) in subsection (a)(10)(C)(iv), by striking 
                ``through (21)'' and inserting ``through (24)''; and
                    (C) in subsection (j), by striking ``through (22)'' 
                and inserting ``through (25)''.
            (2) Section 1903(i) of such Act (42 U.S.C. 1396b(i)), as 
        amended by section 2(b)(2) of the Medicaid Voluntary 
        Contribution and Provider-Specific Tax Amendments of 1991, is 
        amended--
                    (A) in paragraph (10), by striking all that follows 
                ``1927(g)'' and inserting a semicolon;
                    (B) by redesignating the paragraph (12) inserted by 
                section 4752(a)(2) of the Omnibus Budget Reconciliation 
                Act of 1990 as paragraph (11), by transferring and 
                inserting it after paragraph (10), and by striking the 
                period at the end and inserting a semicolon;
                    (C) by redesignating the paragraph (14) inserted by 
                section 4752(e) of the Omnibus Budget Reconciliation 
                Act of 1990 as paragraph (12), by transferring and 
                inserting it after paragraph (11), and by striking the 
                period at the end and inserting a semicolon;
                    (D) by redesignating the paragraph (11) inserted by 
                section 4801(e)(16)(A) of the Omnibus Budget 
                Reconciliation Act of 1990 as paragraph (13), by 
                transferring and inserting it after paragraph (12), and 
                by striking the period at the end and inserting ``; 
                or''; and
                    (E) by inserting after paragraph (13), as so 
                redesignated, the following new paragraph:
            ``(14) with respect to any amount expended for medical 
        assistance for approved substance abuse treatment services for 
        certain disabled beneficiaries (as described in section 
        1905(t)(1)) which are provided in violation of paragraph (2) of 
        section 1905(t).''.
    (d) Effective Date.--The amendments made by this section apply to 
payments under title XIX of the Social Security Act for calendar 
quarters beginning on or after the first day of the second calendar 
quarter that begins on or after the date of the enactment of this Act, 
without regard to whether or not final regulations to carry out such 
amendments have been promulgated by such date.

SEC. 5. EFFECTIVE DATE.

    Except as provided in section 4(d), the amendments made by this Act 
shall apply to benefits payable for months beginning 90 or more days 
after the date of the enactment of this Act.

Answer: SSI Disability Reform Act of 1993 - Amends title XVI (Supplemental Security Income) (SSI) of the Social Security Act (SSA) to:  (1) allow government agencies to serve as paid representative payees; (2) set the maximum fee payable to representative payees at ten percent of the monthly benefit involved; and (3) revise the provision of SSI benefits to the disabled based on substance abuse. 
Amends SSA title XIX (Medicaid) to provide for mandatory Medicaid coverage of approved substance abuse treatment programs for certain disabled SSI beneficiaries.


Question: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Activities Inventory Reform 
Act of 1998''.
SEC. 2. ANNUAL LISTS OF GOVERNMENT ACTIVITIES NOT INHERENTLY 
GOVERNMENTAL IN NATURE.
    (a) Lists Required.--Not later than the end of the third quarter of 
each fiscal year, the head of each executive agency shall submit to the 
Director of the Office of Management and Budget a list of activities 
performed by Federal Government sources for the executive agency that, 
in the judgment of the head of the executive agency, are not inherently 
governmental functions. The entry for an activity on the list shall 
include the following:
        (1) The fiscal year for which the activity first appeared on a 
    list prepared under this section.
        (2) The number of full-time employees (or its equivalent) that 
    are necessary for the performance of the activity by a Federal 
    Government source.
        (3) The name of a Federal Government employee responsible for 
    the activity from whom additional information about the activity 
    may be obtained.
    (b) OMB Review and Consultation.--The Director of the Office of 
Management and Budget shall review the executive agency's list for a 
fiscal year and consult with the head of the executive agency regarding 
the content of the final list for that fiscal year.
    (c) Public Availability of Lists.--
        (1) Publication.--Upon the completion of the review and 
    consultation regarding a list of an executive agency--
            (A) the head of the executive agency shall promptly 
        transmit a copy of the list to Congress and make the list 
        available to the public; and
            (B) the Director of the Office of Management and Budget 
        shall promptly publish in the Federal Register a notice that 
        the list is available to the public.
        (2) Changes.--If the list changes after the publication of the 
    notice as a result of the resolution of a challenge under section 
    3, the head of the executive agency shall promptly--
            (A) make each such change available to the public and 
        transmit a copy of the change to Congress; and
            (B) publish in the Federal Register a notice that the 
        change is available to the public.
    (d) Competition Required.--Within a reasonable time after the date 
on which a notice of the public availability of a list is published 
under subsection (c), the head of the executive agency concerned shall 
review the activities on the list. Each time that the head of the 
executive agency considers contracting with a private sector source for 
the performance of such an activity, the head of the executive agency 
shall use a competitive process to select the source (except as may 
otherwise be provided in a law other than this Act, an Executive order, 
regulations, or any executive branch circular setting forth 
requirements or guidance that is issued by competent executive 
authority). The Director of the Office of Management and Budget shall 
issue guidance for the administration of this subsection.
    (e) Realistic and Fair Cost Comparisons.--For the purpose of 
determining whether to contract with a source in the private sector for 
the performance of an executive agency activity on the list on the 
basis of a comparison of the costs of procuring services from such a 
source with the costs of performing that activity by the executive 
agency, the head of the executive agency shall ensure that all costs 
(including the costs of quality assurance, technical monitoring of the 
performance of such function, liability insurance, employee retirement 
and disability benefits, and all other overhead costs) are considered 
and that the costs considered are realistic and fair.

SEC. 3. CHALLENGES TO THE LIST.

    (a) Challenge Authorized.--An interested party may submit to an 
executive agency a challenge of an omission of a particular activity 
from, or an inclusion of a particular activity on, a list for which a 
notice of public availability has been published under section 2.
    (b) Interested Party Defined.--For the purposes of this section, 
the term ``interested party'', with respect to an activity referred to 
in subsection (a), means the following:
        (1) A private sector source that--
            (A) is an actual or prospective offeror for any contract, 
        or other form of agreement, to perform the activity; and
            (B) has a direct economic interest in performing the 
        activity that would be adversely affected by a determination 
        not to procure the performance of the activity from a private 
        sector source.
        (2) A representative of any business or professional 
    association that includes within its membership private sector 
    sources referred to in paragraph (1).
        (3) An officer or employee of an organization within an 
    executive agency that is an actual or prospective offeror to 
    perform the activity.
        (4) The head of any labor organization referred to in section 
    7103(a)(4) of title 5, United States Code, that includes within its 
    membership officers or employees of an organization referred to in 
    paragraph (3).
    (c) Time for Submission.--A challenge to a list shall be submitted 
to the executive agency concerned within 30 days after the publication 
of the notice of the public availability of the list under section 2.
    (d) Initial Decision.--Within 28 days after an executive agency 
receives a challenge, an official designated by the head of the 
executive agency shall--
        (1) decide the challenge; and
        (2) transmit to the party submitting the challenge a written 
    notification of the decision together with a discussion of the 
    rationale for the decision and an explanation of the party's right 
    to appeal under subsection (e).
    (e) Appeal.--
        (1) Authorization of appeal.--An interested party may appeal an 
    adverse decision of the official to the head of the executive 
    agency within 10 days after receiving a notification of the 
    decision under subsection (d).
        (2) Decision on appeal.--Within 10 days after the head of an 
    executive agency receives an appeal of a decision under paragraph 
    (1), the head of the executive agency shall decide the appeal and 
    transmit to the party submitting the appeal a written notification 
    of the decision together with a discussion of the rationale for the 
    decision.

SEC. 4. APPLICABILITY.

    (a) Executive Agencies Covered.--Except as provided in subsection 
(b), this Act applies to the following executive agencies:
        (1) Executive department.--An executive department named in 
    section 101 of title 5, United States Code.
        (2) Military department.--A military department named in 
    section 102 of title 5, United States Code.
        (3) Independent establishment.--An independent establishment, 
    as defined in section 104 of title 5, United States Code.
    (b) Exceptions.--This Act does not apply to or with respect to the 
following:
        (1) General accounting office.--The General Accounting Office.
        (2) Government corporation.--A Government corporation or a 
    Government controlled corporation, as those terms are defined in 
    section 103 of title 5, United States Code.
        (3) Nonappropriated funds instrumentality.--A part of a 
    department or agency if all of the employees of that part of the 
    department or agency are employees referred to in section 2105(c) 
    of title 5, United States Code.
        (4) Certain depot-level maintenance and repair.--Depot-level 
    maintenance and repair of the Department of Defense (as defined in 
    section 2460 of title 10, United States Code).

SEC. 5. DEFINITIONS.

    In this Act:
        (1) Federal government source.--The term ``Federal Government 
    source'', with respect to performance of an activity, means any 
    organization within an executive agency that uses Federal 
    Government employees to perform the activity.
        (2) Inherently governmental function.--
            (A) Definition.--The term ``inherently governmental 
        function'' means a function that is so intimately related to 
        the public interest as to require performance by Federal 
        Government employees.
            (B) Functions included.--The term includes activities that 
        require either the exercise of discretion in applying Federal 
        Government authority or the making of value judgments in making 
        decisions for the Federal Government, including judgments 
        relating to monetary transactions and entitlements. An 
        inherently governmental function involves, among other things, 
        the interpretation and execution of the laws of the United 
        States so as--
                (i) to bind the United States to take or not to take 
            some action by contract, policy, regulation, authorization, 
            order, or otherwise;
                (ii) to determine, protect, and advance United States 
            economic, political, territorial, property, or other 
            interests by military or diplomatic action, civil or 
            criminal judicial proceedings, contract management, or 
            otherwise;
                (iii) to significantly affect the life, liberty, or 
            property of private persons;
                (iv) to commission, appoint, direct, or control 
            officers or employees of the United States; or
                (v) to exert ultimate control over the acquisition, 
            use, or disposition of the property, real or personal, 
            tangible or intangible, of the United States, including the 
            collection, control, or disbursement of appropriated and 
            other Federal funds.
            (C) Functions excluded.--The term does not normally 
        include--
                (i) gathering information for or providing advice, 
            opinions, recommendations, or ideas to Federal Government 
            officials; or
                (ii) any function that is primarily ministerial and 
            internal in nature (such as building security, mail 
            operations, operation of cafeterias, housekeeping, 
            facilities operations and maintenance, warehouse 
            operations, motor vehicle fleet management operations, or 
            other routine electrical or mechanical services).

SEC. 6. EFFECTIVE DATE.

    This Act shall take effect on October 1, 1998.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.

Answer: Federal Activities Inventory Reform Act of 1998 - Directs the head of each executive agency to submit to the Director of the Office of Management and Budget, not later than the end of the third quarter of each fiscal year, a list of activities performed by Federal Government sources for the agency that, in the judgment of the head of the executive agency, are not inherently governmental functions. 
Requires:  (1) the Director to review the agency's list and consult with the agency head regarding the contents of the final list for the fiscal year; (2) the agency head to transmit a copy of the list to the Congress and make the list publicly available; (3) the Director to publish in the Federal Register a notice that the list is publicly available; and (4) the agency head to publish a notice regarding, make available to the public, and transmit to the Congress, any subsequent change to the list. 
Requires the agency head to:  (1) review the activities on the list within a reasonable time after such a notice of its availability is published; and (2) use a competitive process (with specified exceptions) and ensure that all costs are considered each time that he or she considers contracting with a private sector source for the performance of an activity on the list. 
(Sec. 3) Permits an interested party to submit to an agency a challenge of an omission of a particular activity from, or an inclusion of a particular activity on, a list for which a notice has been published.  Sets forth procedures governing filing challenges, agency decisions on challenges, appealing such decisions, and agency decisions on such appeals. 
(Sec. 4) Provides that this Act shall not apply to or with respect to:  (1) the General Accounting Office; (2) Government corporations and Government controlled corporations; (3) a part of a department or agency if all of the employees of that part are employees paid from nonappropriated funds of certain instrumentalities of the United States under the jurisdiction of the armed forces; and (4) depot-level maintenance and repair of the Department of Defense.


Question: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Benefit Authors without Limiting 
Advancement or Net Consumer Expectations (BALANCE) Act of 2003''.

SEC. 2. FINDINGS.

    The Congress makes the following findings:
            (1) The law of copyright is often described as a 
        ``difficult balance between the interests of authors . . . in 
        the control and exploitation of their writings . . . on the one 
        hand, and society's competing interest in the free flow of 
        ideas, information, and commerce on the other hand.'' Sony 
        Corp. v. Universal City Studios, Inc., 464 U.S. 417, 429 
        (1984).
            (2) Copyright seeks to encourage and reward creative 
        efforts by securing a fair return for an author's labor. 
        Twentieth Century Music Corp. v. Aiken, 422 U.S. 151, 156 
        (1975). At the same time, ``[f]rom the infancy of copyright 
        protection, some opportunity for fair use of copyrighted 
        materials has been thought necessary to fulfill copyright's 
        very purpose, `[t]o promote the Progress of Science and useful 
        Arts . . .''' Campbell v. Acuff-Rose Music, Inc., 510 U.S. 569, 
        575 (1994).
            (3) ``[P]rivate motivation must ultimately serve the cause 
        of promoting broad public availability of literature, music, 
        and the other arts . . . When technological change has rendered 
        its literal terms ambiguous, the Copyright Act must be 
        construed in light of this basic purpose.'' Twentieth Century 
        Music Corp., 422 U.S. at 156.
            (4) Advances in technology have often prompted changes to 
        the copyright laws to maintain the balance. For example, the 
        development of player pianos preceded the enactment of the 
        Copyright Act of 1909. The development of cable television 
        prompted complex reforms to section 111 of title 17, United 
        States Code. Sony, 464 U.S. at 430-31.
            (5) The development of digital technology and the rise of 
        the Internet have once again altered the balance. On the one 
        hand, digital technology threatens the rights of copyright 
        holders. Perfect digital copies of songs and movies can be 
        publicly transmitted, without authorization, to thousands of 
        people at little or no cost. On the other hand, technological 
        control measures give copyright holders the capacity to limit 
        nonpublic performances and threaten society's interests in the 
        free flow of ideas, information, and commerce.
            (6) The Digital Millennium Copyright Act (``DMCA'') was 
        enacted as an attempt to safeguard the traditional balance in 
        the face of these new challenges. It gave copyright holders the 
        ability to fight digital piracy by employing technical 
        restrictions that prevent unlawful access and copying. In 
        practice, however, the DMCA also endangered the rights and 
        expectations of legitimate consumers.
            (7) Contrary to the intent of Congress, section 1201 of 
        title 17, United States Code, has been interpreted to prohibit 
        all users--even lawful ones--from circumventing technical 
        restrictions for any reason. As a result, the lawful consumer 
        cannot legally circumvent technological restrictions, even if 
        he or she is simply trying to exercise a fair use or to utilize 
        the work on a different digital media device. See, e.g., 
        Universal City Studios, Inc. v. Reimerdes, 111 F. Supp. 2d 294, 
        321-24 (S.D.N.Y. 2000) (DMCA failed to give consumers the 
        technical means to make fair uses of encrypted copyrighted 
        works).
            (8) The authors of the DMCA never intended to create such a 
        dramatic shift in the balance. As the report of the Committee 
        of the Judiciary of the House of Representatives accompanying 
        the DMCA stated: ``[A]n individual [should] not be able to 
        circumvent in order to gain unauthorized access to a work, but 
        [should] be able to do so in order to make fair use of a work 
        which he or she has acquired lawfully.'' House Report 105-551, 
        Part I, Section-by-Section Analysis of section 1201(a)(1).
            (9) It is now necessary to restore the traditional balance 
        between copyright holders and society, as intended by the 105th 
        Congress. Copyright laws in the digital age must prevent and 
        punish digital pirates without treating every consumer as one.

SEC. 3. PROTECTING FAIR USE AND CONSUMER EXPECTATIONS IN THE DIGITAL 
              WORLD.

    (a) Fair Use.--The first sentence of section 107 of title 17, 
United States Code, is amended by inserting after ``or by any other 
means specified in that section,'' the following: ``including by analog 
or digital transmissions,''.
    (b) Permissible Uses of Digital Works.--
            (1) In general.--Chapter 1 of title 17, United States Code, 
        is amended by adding after section 122 the following:
``Sec. 123. Limitations on exclusive rights; Permissible uses of 
              digital works
    ``(a) Use of Lawfully Obtained Digital Works.--Notwithstanding the 
provisions of section 106, it is not an infringement of copyright for a 
person who lawfully obtains a copy or phonorecord of a digital work, or 
who lawfully receives a transmission of a digital work, to reproduce, 
store, adapt, or access the digital work--
            ``(1) for archival purposes, if all such archival copies 
        are destroyed or rendered permanently inaccessible in the event 
        that continued possession of the work should cease to be 
        rightful; and
            ``(2) in order to perform or display the work, or an 
        adaptation of the work, on a digital media device, if the work 
        is not so performed or displayed publicly.
    ``(b) Effect of Licenses.--When a digital work is distributed to 
the public subject to nonnegotiable license terms, such terms shall not 
be enforceable under the common laws or statutes of any State to the 
extent that they restrict or limit any of the limitations on exclusive 
rights under this title.
    ``(c) Definitions.--As used in this section, the following terms 
have the following meanings:
            ``(1) A `digital work' is any literary work (except a 
        computer program), sound recording, musical work, dramatic 
        work, or motion picture or other audiovisual work, in whole or 
        in part in a digital or other nonanalog format.
            ``(2) A `digital media device' is any hardware or software 
        that converts copyrighted works in digital form into a format 
        whereby the images and sounds are visible or audible, or 
        retrieves or accesses copyrighted works in digital format and 
        transfers or makes available for transfer such works to such 
        hardware or software.
    ``(d) Construction.--Nothing in this section shall enlarge or 
diminish any of the other limitations on exclusive rights contained in 
this title, including any limitations that relate to archival 
activities by a library or an archives under sections 107 and 108.''.
            (2) Conforming amendment.--The table of sections for 
        chapter 1 of title 17, United States Code, is amended by adding 
        at the end the following new item:

``123. Limitations on exclusive rights; Permissible uses of digital 
                            works.''.

SEC. 4. DIGITAL FIRST SALE.

    Section 109 of title 17, United States Code, is amended by adding 
at the end the following:
    ``(f) The privileges prescribed by subsections (a) and (c) apply in 
a case in which the owner of a particular copy or phonorecord of a work 
in a digital or other nonanalog format, or any person authorized by 
such owner, sells or otherwise disposes of the work by means of a 
transmission to a single recipient, if the owner does not retain the 
copy or phonorecord in a retrievable form and the work is so sold or 
otherwise disposed of in its original format.''.

SEC. 5. PERMISSIBLE CIRCUMVENTION TO ENABLE FAIR USE AND CONSUMER 
              EXPECTATIONS.

    Section 1201 of title 17, United States Code, is amended--
            (1) by redesignating subsections (c) through (k) as 
        subsections (d) through (l), respectively; and
            (2) by inserting after subsection (b) the following:
    ``(c) Circumvention for Noninfringing Uses.--(1) Notwithstanding 
any other provision in this title, a person who lawfully obtains a copy 
or phonorecord of a work, or who lawfully receives a transmission of a 
work, may circumvent a technological measure that effectively controls 
access to the work or protects a right of the copyright holder under 
this title if--
            ``(A) such act is necessary to make a noninfringing use of 
        the work under this title; and
            ``(B) the copyright owner fails to make publicly available 
        the necessary means to make such noninfringing use without 
        additional cost or burden to such person.
    ``(2) Notwithstanding the provisions of subsections (a)(2) and (b), 
any person may manufacture, import, offer to the public, provide, or 
otherwise make available technological means to circumvent a 
technological measure that effectively controls access to a work 
protected under this title or protects a right of a copyright holder 
under this title, if--
            ``(A) such means are necessary to make a noninfringing use 
        under paragraph (1)(A);
            ``(B) such means are designed, produced, and marketed to 
        make a noninfringing use under paragraph (1)(A); and
            ``(C) the copyright owner fails to make available the 
        necessary means referred to in paragraph (1)(B).''.

Answer:
Benefit Authors without Limiting Advancement or Net Consumer Expectations (BALANCE) Act of 2003 - Amends Federal copyright law to: (1) include analog or digital transmissions of a copyrighted work within fair use protections; (2) provide that it is not a copyright infringement for a person who lawfully obtains or receives a transmission of a digital work to reproduce, store, adapt, or access it for archival purposes or to transfer it to a preferred digital media device in order to effect a non-public performance or display; (3) allow the owner of a particular copy of a digital work to sell or otherwise dispose of the work by means of a transmission to a single recipient, provided the owner does not retain his or her copy in a retrievable form and the work is sold or otherwise disposed of in its original format; and (4) permit circumvention of copyright encryption technology if it is necessary to enable a noninfringing use and the copyright owner fails to make publicly available the necessary means for circumvention without additional cost or burden to a person who has lawfully obtained a copy or phonorecord of a work, or lawfully received a transmission of it.