In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.

Q: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Child Custody Protection Act''.

SEC. 2. TRANSPORTATION OF MINORS IN CIRCUMVENTION OF CERTAIN LAWS 
              RELATING TO ABORTION.

    Title 18, United States Code, is amended by inserting after chapter 
117 the following:

 ``CHAPTER 117A--TRANSPORTATION OF MINORS IN CIRCUMVENTION OF CERTAIN 
                       LAWS RELATING TO ABORTION

``Sec.
``2431. Transportation of minors in circumvention of certain laws 
                            relating to abortion.
``2432. Transportation of minors in circumvention of certain laws 
                            relating to abortion.
``Sec. 2431. Transportation of minors in circumvention of certain laws 
              relating to abortion
    ``(a) Offense.--
            ``(1) Generally.--Except as provided in subsection (b), 
        whoever knowingly transports a minor across a State line, with 
        the intent that such minor obtain an abortion, and thereby in 
        fact abridges the right of a parent under a law requiring 
        parental involvement in a minor's abortion decision, in force 
        in the State where the minor resides, shall be fined under this 
        title or imprisoned not more than one year, or both.
            ``(2) Definition.--For the purposes of this subsection, an 
        abridgement of the right of a parent occurs if an abortion is 
        performed or induced on the minor, in a State or a foreign 
        nation other than the State where the minor resides, without 
        the parental consent or notification, or the judicial 
        authorization, that would have been required by that law had 
        the abortion been performed in the State where the minor 
        resides.
    ``(b) Exceptions.--
            ``(1) The prohibition of subsection (a) does not apply if 
        the abortion was necessary to save the life of the minor 
        because her life was endangered by a physical disorder, 
        physical injury, or physical illness, including a life 
        endangering physical condition caused by or arising from the 
        pregnancy itself.
            ``(2) A minor transported in violation of this section, and 
        any parent of that minor, may not be prosecuted or sued for a 
        violation of this section, a conspiracy to violate this 
        section, or an offense under section 2 or 3 based on a 
        violation of this section.
    ``(c) Affirmative Defense.--It is an affirmative defense to a 
prosecution for an offense, or to a civil action, based on a violation 
of this section that the defendant--
            ``(1) reasonably believed, based on information the 
        defendant obtained directly from a parent of the minor, that 
        before the minor obtained the abortion, the parental consent or 
        notification took place that would have been required by the 
        law requiring parental involvement in a minor's abortion 
        decision, had the abortion been performed in the State where 
        the minor resides; or
            ``(2) was presented with documentation showing with a 
        reasonable degree of certainty that a court in the minor's 
        State of residence waived any parental notification required by 
        the laws of that State, or otherwise authorized that the minor 
        be allowed to procure an abortion.
    ``(d) Civil Action.--Any parent who suffers harm from a violation 
of subsection (a) may obtain appropriate relief in a civil action 
unless the parent has committed an act of incest with the minor subject 
to subsection (a).
    ``(e) Definitions.--For the purposes of this section--
            ``(1) the term `abortion' means the use or prescription of 
        any instrument, medicine, drug, or any other substance or 
        device intentionally to terminate the pregnancy of a female 
        known to be pregnant, with an intention other than to increase 
        the probability of a live birth, to preserve the life or health 
        of the child after live birth, to terminate an ectopic 
        pregnancy, or to remove a dead unborn child who died as the 
        result of a spontaneous abortion, accidental trauma or a 
        criminal assault on the pregnant female or her unborn child;
            ``(2) the term a `law requiring parental involvement in a 
        minor's abortion decision' means a law--
                    ``(A) requiring, before an abortion is performed on 
                a minor, either--
                            ``(i) the notification to, or consent of, a 
                        parent of that minor; or
                            ``(ii) proceedings in a State court; and
                    ``(B) that does not provide as an alternative to 
                the requirements described in subparagraph (A) 
                notification to or consent of any person or entity who 
                is not described in that subparagraph;
            ``(3) the term `minor' means an individual who is not older 
        than the maximum age requiring parental notification or 
        consent, or proceedings in a State court, under the law 
        requiring parental involvement in a minor's abortion decision;
            ``(4) the term `parent' means--
                    ``(A) a parent or guardian;
                    ``(B) a legal custodian; or
                    ``(C) a person standing in loco parentis who has 
                care and control of the minor, and with whom the minor 
                regularly resides, who is designated by the law 
                requiring parental involvement in the minor's abortion 
                decision as a person to whom notification, or from whom 
                consent, is required; and
            ``(5) the term `State' includes the District of Columbia 
        and any commonwealth, possession, or other territory of the 
        United States, and any Indian tribe or reservation.
``Sec. 2432. Transportation of minors in circumvention of certain laws 
              relating to abortion
    ``Notwithstanding section 2431(b)(2), whoever has committed an act 
of incest with a minor and knowingly transports the minor across a 
State line with the intent that such minor obtain an abortion, shall be 
fined under this title or imprisoned not more than one year, or both. 
For the purposes of this section, the terms `State', `minor', and 
`abortion' have, respectively, the definitions given those terms in 
section 2435.''.

SEC. 3. CLERICAL AMENDMENT.

    The table of chapters at the beginning of part I of title 18, 
United States Code, is amended by inserting after the item relating to 
chapter 117 the following new items:

``117A. Transportation of minors in circumvention of certain    2431''.
                            laws relating to abortion.

A: Child Custody Protection Act - Amends the federal criminal code to prohibit transporting a minor child across a state line to obtain an abortion (deems such transporting to be a de facto abridgment of the right of a parent under any law in the minors state of residence that requires parental involvement in the minors abortion decision). Makes an exception for an abortion necessary to safe the life of the minor.

Makes it an affirmative defense to a prosecution or civil action under this Act that a defendant: (1) reasonably believed that before the minor obtained the abortion, the required parental consent or notification or judicial authorization took place; or (2) was presented with documentation showing that a court waived parental notification requirements or authorized the minor's abortion.

Defines "abortion" as the termination of a pregnancy with an intention other than to increase the probability of a live birth, preserve the life or health of the child after live birth, terminate an ectopic pregnancy, or remove a dead unborn child who died as the result of a spontaneous abortion, accidental trauma, or a criminal assault on the pregnant female or her unborn child.

Imposes a fine and/or prison term of up to one year on anyone who has committed an act of incest with a minor and knowingly transports such minor across a state line to obtain an abortion.
****
Q: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Colonial New Mexico Commemorative 
Act''.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--Congress finds that--
            (1) in 1598, almost a decade before the first permanent 
        English settlement was established at Jamestown, Spanish 
        colonists entered New Mexico, beginning more than 2 centuries 
        of colonization that would indelibly mark the character of the 
        American Southwest;
            (2) because of the flow of history, New Mexico has remained 
        a unique area of the Spanish borderlands;
            (3) as a result of its remoteness, New Mexico changed more 
        slowly than other settlements and has retained many significant 
        remnants of colonial customs, language, and attitudes; and
            (4) the interaction of the American Indian and Hispanic 
        colonial heritages resulted in customs, architecture, and many 
        other manifestations that are unique to today's American 
        culture.
    (b) Purpose.--In order to enhance the preservation, interpretation, 
and public understanding of various aspects of colonial New Mexico, the 
purpose of this Act is to authorize the Secretary of the Interior to 
formulate a program for the research, interpretation, and preservation 
of various aspects of colonial New Mexico history.

SEC. 3. DEFINITIONS.

    As used in this Act:
            (1) Committee.--The term ``Committee'' means the Colonial 
        New Mexico Preservation Advisory Committee established by 
        section 6.
            (2) Plan.--The term ``plan'' means the comprehensive 
        management plan described in section 5.
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.

SEC. 4. DUTIES OF SECRETARY.

    (a) Plan.--
            (1) Preparation.--The Secretary shall prepare the 
        comprehensive management plan in accordance with section 5.
            (2) Implementation.--In close consultation with the Office 
        of Cultural Affairs of the State of New Mexico and the 
        Committee, the Secretary shall--
                    (A) coordinate the activities of Federal, State, 
                and local governments, and private businesses and 
                organizations, to carry out the plan and the purpose of 
                this Act; and
                    (B) consistent with standards established by the 
                Secretary for the preservation of historic properties 
                and for educational programs, and consistent with the 
                National Historic Preservation Act (16 U.S.C. 470 et 
                seq.), prepare guidelines and standards for projects, 
                as identified in the plan, that will further public 
                understanding of colonial New Mexico history.
    (b) Grants.--
            (1) In general.--From funds appropriated, donated, or 
        otherwise made available to the Secretary, the Secretary shall 
        award grants to tribal, governmental, and nongovernmental 
        entities to conserve and protect structures, objects, and 
        sites, and help support cultural events, that have outstanding 
        significance in the commemoration of colonial New Mexico, 
        except that the Federal share shall not exceed 50 percent of 
        the cost of each project.
            (2) Non-federal share.--The non-Federal share may be in the 
        form of cash or services, including donation of labor for 
        project implementation.
    (c) Surveys and Archaeological Investigations.--The Secretary shall 
contract for surveys and archaeological and historical investigations 
of sites relating to colonial New Mexico, including the preparation of 
reports and maps, and the curation of artifacts.
    (d) Publications.--The Secretary shall publish study reports and 
educational materials.
    (e) Nominations to National Register of Historic Places.--The 
Secretary shall prepare thematic nominations to the National Register 
of Historic Places of colonial sites and resources in New Mexico.
    (f) Staff of Other Agencies.--On a reimbursable basis, the 
Secretary may procure the services of personnel detailed from the State 
of New Mexico or other Federal agencies.
    (g) Donations.--The Secretary may seek and accept donations of 
funds or services from public and private entities to carry out this 
Act.

SEC. 5. COMPREHENSIVE MANAGEMENT PLAN.

    (a) In General.--Not later than 2 years after funds are made 
available for purposes of this Act, the Secretary, in consultation with 
the Committee, the State of New Mexico, units of local government, and 
private groups, shall prepare a comprehensive management plan to 
provide direction for commemorative actions and projects.
    (b) Contents.--The plan shall--
            (1) establish a process and procedures for undertaking 
        research relating to colonial New Mexico and a program for 
        regular publication of research materials and findings;
            (2) develop a survey program to further evaluate known 
        resources and identify sites and features that require 
        additional study;
            (3) identify a core system of interpretive sites and 
        features that would provide a comprehensive overview of the 
        colonial New Mexico story;
            (4) prepare interpretive materials to address the colonial 
        New Mexico story and identify locations where this material 
        will be available to the public;
            (5) evaluate and recommend high priority sites and 
        resources that need protection and assistance;
            (6) with the assistance of site owners, prepare options for 
        the protection and management of high priority colonial New 
        Mexico resources;
            (7) evaluate and recommend highway routes, in existence on 
        the date of the plan, that could be designated by the State of 
        New Mexico as colonial New Mexico tour routes; and
            (8) evaluate the feasibility of and need for developing 
        commemorative centers in New Mexico in accordance with section 
        7(a).

SEC. 6. ESTABLISHMENT OF ADVISORY COMMITTEE.

    (a) In General.--There is established in the Department of the 
Interior the Colonial New Mexico Preservation Advisory Committee to 
advise the Secretary with respect to the administration of this Act.
    (b) Membership.--
            (1) Composition.--The Committee shall be composed of 15 
        members who have knowledge of New Mexico colonial history and 
        culture and who shall be appointed by the Secretary, of whom--
                    (A) three members shall be appointed from 
                recommendations submitted by the Governor of New 
                Mexico, of whom one member shall represent the Office 
                of Cultural Affairs of the State of New Mexico;
                    (B) one member shall be appointed from 
                recommendations submitted by the All Indian Pueblo 
                Council;
                    (C) one member--
                            (i) shall be from the general public; and
                            (ii) shall have knowledge of colonial 
                        history in New Mexico;
                    (D) four members--
                            (i) shall be appointed from recommendations 
                        submitted by local governments in New Mexico; 
                        and
                            (ii) shall represent Hispanic communities;
                    (E) one member shall be appointed from 
                recommendations submitted by the President of the 
                University of New Mexico;
                    (F) one member shall be appointed from 
                recommendations submitted by the President of New 
                Mexico State University;
                    (G) one member shall be appointed from 
                recommendations jointly submitted by the Navajo and 
                Apache tribal governments;
                    (H) one member shall have professional expertise in 
                the colonial history of New Mexico;
                    (I) one member shall have professional expertise in 
                architectural history; and
                    (J) one member shall be the Secretary or the 
                Secretary's designee and shall serve in an ex-officio 
                capacity.
            (2) Chairperson.--
                    (A) In general.--The Committee shall elect a 
                chairperson from among its members.
                    (B) Term.--The chairperson shall serve for a term 
                of 2 years.
            (3) Vacancies.--A vacancy in the Committee shall be filled 
        in the manner in which the original appointment was made.
            (4) Terms.--
                    (A) In general.--Each member of the Committee shall 
                be appointed for a term of 5 years.
                    (B) Members filling vacancies.--A member appointed 
                to fill a vacancy shall serve for the remainder of the 
                term for which the member's predecessor was appointed.
                    (C) Extended service.--A member of the Committee 
                may serve after the expiration of the member's term 
                until a successor is appointed.
            (5) Compensation.--Members of the Committee shall serve 
        without compensation.
            (6) Travel expenses.--While away from their homes or 
        regular places of business in the performance of services for 
        the Committee, members of the Committee shall be allowed travel 
        expenses, including per diem in lieu of subsistence, in the 
        same manner as persons employed intermittently in the 
        Government service are allowed expenses under section 5703 of 
        title 5, United States Code.
    (c) Meetings.--
            (1) In general.--The Committee shall meet at least twice 
        annually or at the call of the chairperson or a majority of the 
        members of the Committee.
            (2) Quorum.--A simple majority of members of the Committee 
        shall constitute a quorum.
    (d) Hearings.--To carry out this section, the Committee may hold 
public hearings, take testimony, and record the views of the public 
regarding the plan and implementation of the plan.
    (e) Termination.--The Committee shall terminate 10 years after 
completion of the appointment of the first group of members.

SEC. 7. COMMEMORATIVE CENTERS.

    (a) In General.--
            (1) In general.--The Secretary may develop commemorative 
        centers, operate educational programs, provide technical 
        assistance, conduct cultural events, and prepare media 
        materials, except that the Federal share of a project shall not 
        exceed 50 percent of the total cost of development.
            (2) Non-federal share.--The non-Federal share may be in the 
        form of cash or services.
    (b) Espanola Plaza Center.--
            (1) In general.--In consultation with the Committee, the 
        Secretary may pay to the city of Espanola, New Mexico, the 
        Federal share of planning, developing, and operating a 
        commemorative center as an element of the Spanish Commemorative 
        Plaza.
            (2) Federal share.--The Federal share may not exceed 50 
        percent of the total cost of the Espanola Plaza project.
            (3) Non-federal share.--The non-Federal share may be in the 
        form of cash or services.

SEC. 8. GALISTEO BASIN STUDY.

    In accordance with the National Park Service document entitled 
``Alternative Concepts for Commemorating Spanish Colonization'' and 
dated February 1991, the Secretary shall undertake a special resource 
study of the major prehistoric and historic sites in the Galisteo Basin 
relating to colonial New Mexico. The study shall include evaluations of 
significance, site integrity, threats, and protection and management 
options.

SEC. 9. PUEBLO TRAIL.

    (a) Redesignation.--The Masau Trail, as designated by title II of 
Public Law 100-225 (16 U.S.C. 460uu-11 et seq.), is redesignated as the 
Pueblo Trail.
    (b) Legal References.--Any reference in any record, map, or other 
document of the United States to the Masau Trail is deemed to be a 
reference to the Pueblo Trail.
    (c) Conforming Amendments.--
            (1) The title heading of title II of Public Law 100-225 (16 
        U.S.C. 460uu-11 et seq.) is amended by striking ``MASAU'' and 
        inserting ``PUEBLO''.
            (2) Public Law 100-225 (16 U.S.C. 460uu et seq.) is amended 
        by striking ``Masau'' each place it appears in sections 201, 
        204, and 510 and inserting ``Pueblo''.

SEC. 10. ANNUAL REPORTS.

    (a) In General.--The Secretary shall submit an annual report to 
Congress that lists with respect to this Act--
            (1) actions taken by the Secretary;
            (2) entities to which any grants were made during the 
        fiscal year and any recipients of technical assistance; and
            (3) actions taken to protect and interpret significant 
        sites, structures, and objects relating to colonial New Mexico.
    (b) Cost Estimates.--The report shall include detailed cost 
estimates of projects that are proposed to be funded under this Act 
during the next fiscal year.

SEC. 11. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Department of the 
Interior $5,000,000 to carry out this Act, to remain available until 
expended.

A: Colonial New Mexico Commemorative Act - Directs the Secretary of the Interior to prepare a comprehensive management plan to:  (1) establish procedures for undertaking research relating to colonial New Mexico and a program for publication of research; (2) develop a survey to evaluate known resources and identify features that require additional study; (3) identify a core system of interpretive sites that would provide a comprehensive overview of the colonial New Mexico story; (4) prepare interpretive materials to address the colonial New Mexico story to be made available to the public; (5) recommend high priority sites that need protection and assistance; (6) prepare options for the management of priority New Mexico resources; (7) recommend highway routes that could be designated as colonial New Mexico tour routes; and (8) evaluate the feasibility of and need for developing commemorative centers in New Mexico. 
Requires the Secretary to award grants to tribal, governmental, and nongovernmental entities to conserve and protect structures, objects, and sites, and help support cultural events, that have significance in the commemoration of colonial New Mexico. Directs the Secretary to prepare thematic nominations to the National Register of Historic Places of colonial sites and resources in New Mexico. 
Establishes the Colonial New Mexico Preservation Advisory Committee in the Department of the Interior. 
Authorizes the Secretary to:  (1) develop commemorative centers, operate educational programs, provide technical assistance, conduct cultural events, and prepare media materials; and (2) pay to the city of Espanola, New Mexico, the Federal share of planning and operating a commemorative center as an element of the Spanish Commemorative Plaza. 
Directs the Secretary to undertake a special resource study of the major prehistoric and historic sites in the Galisteo Basin relating to colonial New Mexico. 
Authorizes appropriations. 
Redesignates the Masau Trail as the Pueblo Trail.
****
Q: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fairness and Accountability in 
International Taxation Act of 2003''.

SEC. 2. DENIAL OF TREATY BENEFITS FOR CERTAIN DEDUCTIBLE PAYMENTS.

    (a) In General.--Section 894 of the Internal Revenue Code of 1986 
(relating to income affected by treaty) is amended by adding at the end 
the following new subsection:
    ``(d) Denial of Treaty Benefits for Certain Deductible Payments.--
            ``(1) In general.--A foreign entity shall not be entitled 
        under any income tax treaty of the United States with a foreign 
        country to any reduced rate of any withholding tax imposed by 
        this title on any deductible foreign payment unless such entity 
        is predominantly owned by individuals who are residents of such 
        foreign country.
            ``(2) Deductible foreign payment.--For purposes of 
        paragraph (1), the term `deductible foreign payment' means any 
        payment--
                    ``(A) which is made by a domestic entity directly 
                or indirectly to a related person which is a foreign 
                entity, and
                    ``(B) which is allowable as a deduction under this 
                chapter.
            ``(3) Domestic and foreign entities; related person.--For 
        purposes of this subsection--
                    ``(A) Domestic entity.--The term `domestic entity' 
                means any domestic corporation or domestic partnership.
                    ``(B) Foreign entity.--The term `foreign entity' 
                means any foreign corporation or foreign partnership.
                    ``(C) Related person.--The term `related person' 
                has the meaning given such term by section 954(d)(3) 
                (determined by substituting `domestic entity' for 
                `controlled foreign corporation' each place it 
                appears).
            ``(4) Predominant ownership.--For purposes of this 
        subsection--
                    ``(A) In general.--An entity is predominantly owned 
                by individuals who are residents of a foreign country 
                if--
                            ``(i) in the case of a corporation, more 
                        than 50 percent (by value) of the stock of such 
                        corporation is owned (within the meaning of 
                        section 883(c)(4)) by individuals who are 
                        residents of such foreign country, or
                            ``(ii) in the case of a partnership, more 
                        than 50 percent (by value) of the beneficial 
                        interests in such partnership are so owned.
                    ``(B) Publicly traded corporations.--A foreign 
                corporation also shall be treated as predominantly 
                owned by individuals who are residents of a foreign 
                country if--
                            ``(i)(I) the stock of such corporation is 
                        primarily and regularly traded on an 
                        established securities market in such foreign 
                        country, and
                            ``(II) such corporation has activities 
                        within such foreign country which are 
                        substantial in relation to the total activities 
                        of such corporation and its related persons, or
                            ``(ii) such corporation is wholly owned 
                        (directly or indirectly) by another foreign 
                        corporation which is described in clause (i).
                    ``(C) Special rule.--
                            ``(i) In general.--A foreign corporation 
                        shall be treated as meeting the requirements of 
                        subparagraph (A) if--
                                    ``(I) such requirements would be 
                                met if `30 percent' were substituted 
                                for `50 percent' in subparagraph 
                                (A)(i),
                                    ``(II) the treaty country is a 
                                member of a multinational economic 
                                association such as the European Union, 
                                and
                                    ``(III) at least 50 percent of the 
                                value of the stock of the corporation 
                                is owned (within the meaning of section 
                                883(c)(4)) by individuals who are 
                                residents of the treaty country or 
                                other qualified foreign countries.
                            ``(ii) Qualified foreign country.--For 
                        purposes of this subparagraph, the term 
                        `qualified foreign country' means any foreign 
                        country if--
                                    ``(I) such foreign country is a 
                                member of the multinational economic 
                                association of which the treaty country 
                                is a member, and
                                    ``(II) such foreign country has a 
                                tax treaty with the United States 
                                providing a withholding tax rate 
                                reduction which is not less than the 
                                withholding tax rate reduction 
                                applicable (without regard to this 
subsection) to the payment received by such foreign corporation.
            ``(5) Exception for corporations with substantial business 
        activities in treaty country.--Paragraph (1) shall not apply to 
        a payment received by a foreign corporation if such corporation 
        has substantial business activities in the treaty country and 
        if such corporation establishes to the satisfaction of the 
        Secretary that the payment is subject to an effective rate of 
        income tax imposed by such country greater than 90 percent of 
        the maximum rate of tax specified in section 11.
            ``(6) Exception for payments received by controlled foreign 
        corporation.--Paragraph (1) shall not apply to any deductible 
        foreign payment made by a corporation if the recipient of the 
        payment is a controlled foreign corporation and the payor is a 
        United States shareholder (as defined in section 951(b)) of 
        such corporation.
            ``(7) Conduit payments.--Under regulations prescribed by 
        the Secretary, paragraph (1) shall not apply to a payment 
        received by a foreign entity referred to in paragraph (1) if--
                    ``(A) within a reasonable period after such entity 
                receives such payment, such entity makes a comparable 
                payment directly or indirectly to another related 
                person,
                    ``(B) such related person is a resident of a 
                foreign country with which the United States has an 
                income tax treaty,
                    ``(C) such related person is predominantly owned by 
                individuals who are residents of such country, and
                    ``(D) the withholding tax rate applicable under 
                such treaty is equal to or greater than the withholding 
                tax rate applicable (without regard to this paragraph) 
                to the payment received by such foreign entity.
        A similar rule shall apply where the payment is includible in 
        the gross income of a related person by reason of a foreign law 
        comparable to subpart F of part III of subchapter N.''
    (b) Effective Date.--The amendment made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 3. TRANSFER PRICE REDUCED BY DEFLECTED TAX HAVEN INCOME.

    (a) In General.--Section 482 of the Internal Revenue Code of 1986 
(relating to allocation of income and deductions among taxpayers) is 
amended by inserting ``(a) In General.--'' before ``In the case of two 
or more'' and by adding at the end the following new subsection:
    ``(b) Special Rule for Related-Party Inbound and Outbound 
Transactions.--
            ``(1) In general.--In the case of property or services to 
        which this subsection applies, the transfer price under this 
        section for such property or service shall be the transfer 
        price determined without regard to this subsection--
                    ``(A) in the case of a related-party inbound 
                transaction, reduced by the deflected tax haven income 
                with respect to such property or service, or
                    ``(B) in the case of a related-party outbound 
                transaction, increased by the deflected tax haven 
                income with respect to such property or service.
            ``(2) Property or services to which subsection applies.--
                    ``(A) In general.--This subsection applies to any 
                property or services if there is a related-party 
                inbound or outbound transaction with respect to such 
                property or services.
                    ``(B) Related-party inbound transaction.--A 
                related-party inbound transaction is any transaction 
                where--
                            ``(i) property is acquired directly or 
                        indirectly by a foreign-controlled domestic 
                        corporation from a foreign related person, or
                            ``(ii) the services are performed directly 
                        or indirectly for a foreign-controlled domestic 
                        corporation by a foreign related person.
                    ``(C) Related-party outbound transaction.--A 
                related-party outbound transaction is any transaction 
                where--
                            ``(i) property is sold directly or 
                        indirectly by a foreign-controlled domestic 
                        corporation to a foreign related person, or
                            ``(ii) services are performed directly or 
                        indirectly by a foreign-controlled domestic 
                        corporation for a foreign related person.
            ``(3) Deflected tax haven income.--For purposes of this 
        subsection--
                    ``(A) In general.--The term `deflected tax haven 
                income' means income (whether in the form of profits, 
                commissions, fees, or otherwise) derived by a foreign 
                related person in connection with any transaction 
                related to property or services to which this 
                subsection applies if such income would be treated as 
                foreign base company sales income (as defined in 
                section 954(d)) or foreign base company services income 
                (as defined in section 954(e)) were such foreign 
                related person treated as a controlled foreign 
                corporation.
                    ``(B) Exception for income subject to foreign 
                taxes.--
                            ``(i) High taxes.--Such term shall not 
                        include any item of income with respect to 
                        which the requirements of section 954(b)(4) are 
                        met.
                            ``(ii) Other taxes.--If the taxpayer 
                        establishes to the satisfaction of the 
                        Secretary that an item of income was subject to 
                        an income tax imposed by a foreign country and 
                        the effective rate of such tax (and such 
                        effective rate was not greater than 90 percent 
                        of the maximum rate of tax specified in section 
                        11), the term `deflected tax haven income' 
                        shall not include the same proportion of such 
                        income as such effective rate of tax bears to 
                        90 percent.
            ``(4) Other definitions.--For purposes of this subsection--
                    ``(A) Foreign related person.--The term `foreign 
                related person' means any foreign person who is related 
                (within the meaning of subsection (a)) to the foreign-
                controlled domestic corporation.
                    ``(B) Foreign-controlled domestic corporation.--The 
                term `foreign-controlled domestic corporation' means 
                any domestic corporation which is 25-percent foreign-
                owned (as defined in section 6038A(c)).''
    (b) Effective Date.--The amendment made by this section shall apply 
to property acquired, and services performed, after ____.

A:
Fairness and Accountability in International Taxation Act of 2003 - Amends the Internal Revenue Code to deny reduced withholding tax treaty benefits to a foreign entity on any deductible foreign payment (deductible payment made by a domestic entity to a related foreign entity) unless such entity is predominantly owned by individuals who are residents of such foreign country. Exempts from such provision: (1) corporations with substantial business activities in a treaty country with specified tax rates; (2) payments received by controlled foreign corporations from U.S. shareholders; and (3) certain conduit payments made by foreign corporations.Provides a special income and deduction allocation rule for related-party inbound (transfer price increased by deflected tax haven income) and outbound (transfer price increased by deflected tax haven income) transactions. Defines "related-party inbound transaction," "related-party outbound transaction," and "deflected tax haven."
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