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

    This Act may be cited as the ``Rural Emergency Acute Care Hospital 
Act''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) According to the University of North Carolina's Center 
        for Health Services Research, 55 rural hospitals have closed in 
        the Unites States since January 2010.
            (2) In 2014, iVantage conducted a study for the National 
        Rural Health Association and found 283 hospitals at risk of 
        closure based upon performance indicators that matched those 
        facilities already forced to close in this decade.
            (3) Researchers at the University of North Carolina 
        identified inpatient volume as a substantial contributing 
        factor to the financial performance of rural hospitals, with 
        many of the at-risk hospitals having an average daily bed 
        census of less than 2.
            (4) Adverse impacts to the local economy and the loss of 
        timely access to emergency medical care are 2 major effects of 
        rural hospital closures.
            (5) According to the National Center for Rural Health 
        Works, the typical rural hospital creates over 140 jobs and 
        generates $6,800,000 in compensation while serving an average 
        population of 14,600.
            (6) The 2014 iVantage study estimates that the 283 at-risk 
        hospitals could result in the loss of 36,000 health care jobs, 
        50,000 community jobs, and $10,600,000,000 in gross domestic 
        product.
            (7) Time is the most critical factor for achieving 
        successful outcomes in emergency medicine, and emergency 
        medical clinicians refer to the time-sensitive period during 
        which successful outcomes may be best achieved as the ``golden 
        hour''.
            (8) The National Conference of State Legislatures states 
        that 60 percent of trauma deaths in the United States occur in 
        rural areas, where only 15 percent of the population is 
        represented.
            (9) The disproportionate percentage of trauma deaths in 
        rural areas is likely attributable in large part to a 
        combination of response time to the scene and distance to the 
        nearest emergency room to stabilize trauma victims.
            (10) The percentage of trauma deaths occurring in rural 
        areas could continue to increase as more rural hospitals close, 
        further limiting access to emergency services and requiring 
        patients to travel longer distances to receive emergency 
        medical care.
            (11) The creation of a rural emergency hospital designation 
        under the Medicare program will allow facilities in rural areas 
        to provide emergency medical services without having to 
        maintain inpatient beds.
            (12) In addition to providing emergency care, rural 
        emergency hospitals could convert the space previously used for 
        inpatient services to provide other medical services including, 
        but not limited to, observation care, skilled nursing facility 
        care, infusion services, hemodialysis, home health, hospice, 
        nursing home care, population health, and telemedicine 
        services.

SEC. 3. RURAL EMERGENCY HOSPITAL PROGRAM.

    (a) In General.--
            (1) Rural emergency hospital and services defined.--Section 
        1861 of the Social Security Act (42 U.S.C. 1395x) is amended--
                    (A) in subsection (e), in the last sentence of the 
                matter following paragraph (9), by inserting ``or a 
                rural emergency hospital (as defined in section 
                1861(iii)(1))'' before the period at the end; and
                    (B) by adding at the end the following subsection:

    ``Rural Emergency Hospital; Rural Emergency Hospital Outpatient 
                                Services

    ``(iii)(1) The term `rural emergency hospital' means a facility 
that--
            ``(A)(i) as of December 31, 2014--
                            ``(I) was a critical access hospital; or
                            ``(II) was a hospital with not more than 50 
                        beds located in a county (or equivalent unit of 
                        local government) in a rural area (as defined 
                        in section 1886(d)(2)(D)), or was a hospital 
                        with not more than 50 beds that was treated as 
                        being located in a rural area pursuant to 
                        section 1886(d)(8)(E); or
                    ``(ii) was a critical access hospital described in 
                clause (i)(I) or a hospital described in clause (i)(II) 
                that ceased operations during the period beginning on 
                the date that is 5 years prior to the date of the 
                enactment of this subsection and ending on December 30, 
                2014;
            ``(B) provides 24-hour emergency medical care and 
        observation care that does not exceed an annual per patient 
        average of 24 hours or more than 1 midnight;
            ``(C) does not provide any acute care inpatient beds and 
        has protocols in place for the timely transfer of patients who 
        require acute care inpatient services or other inpatient 
        services;
            ``(D) has elected to be designated as a rural emergency 
        hospital;
            ``(E) has received approval to operate as a rural emergency 
        hospital from the State under section 1834(r)(3)(A); and
            ``(F) is certified by the Secretary under section 
        1834(r)(3)(B).
    ``(2) The term `rural emergency hospital outpatient services' means 
medical and other health services furnished by a rural emergency 
hospital on an outpatient basis.
    ``(3) Nothing in this subsection or section 1834(r)(3) shall be 
construed to prohibit a rural emergency hospital from providing 
extended care services.''.
            (2) Payment for rural emergency hospital services.--
                    (A) In general.--Section 1833(a) of the Social 
                Security Act (42 U.S.C. 1395l(a)) is amended--
                            (i) in paragraph (8), by striking ``and'' 
                        at the end;
                            (ii) in paragraph (9), by striking the 
                        period at the end and inserting ``; and''; and
                            (iii) by inserting after paragraph (9) the 
                        following new paragraph:
            ``(10) in the case of rural emergency hospital emergency 
        services and services provided by a rural emergency hospital or 
        other provider of ambulance services to transport patients who 
        require acute care inpatient services or other inpatient 
        services from such rural emergency hospital to a hospital or 
        critical access hospital, the amounts described in section 
        1834(r).''.
                    (B) Payment amount.--Section 1834 of the Social 
                Security Act (42 U.S.C. 1395m) is amended by adding at 
                the end the following subsection:
    ``(r) Payment Rules Relating to Rural Emergency Hospitals.--
            ``(1) Payment for rural emergency hospital outpatient 
        services.--
                    ``(A) In general.--The amount of payment for rural 
                emergency hospital outpatient services of a rural 
                emergency hospital is equal to 110 percent of the 
                reasonable costs of providing such services.
                    ``(B) Telehealth services.--For purposes of this 
                paragraph, in determining the reasonable costs of 
                providing rural emergency hospital outpatient services, 
                costs associated with having a backup physician 
                available via a telecommunications system shall be 
                considered reasonable costs.
            ``(2) Payment for transportation services.--The amount of 
        payment for services provided by a rural emergency hospital or 
        other provider of ambulance services to transport patients who 
        require acute care inpatient services or other inpatient 
        services from such rural emergency hospital to a hospital or 
        critical access hospital is equal to 110 percent of the 
        reasonable costs of providing such services.
            ``(3) Requirements for rural emergency hospitals.--
                    ``(A) State approval to operate as a rural 
                emergency hospital.--No payment shall be made under 
                this subsection to a facility, or to a provider of 
                ambulance services providing transportation services 
                from such facility, unless the State in which the 
                facility is located has approved the facility's 
                designation as a rural emergency hospital.
                    ``(B) Certification of rural emergency hospital.--
                            ``(i) In general.--No payment shall be made 
                        under this subsection to a facility, or to a 
                        provider of ambulance services providing 
                        transportation services from such facility, 
                        unless the facility has been certified by the 
                        Secretary as a rural emergency hospital.
                            ``(ii) Certification requirements.--The 
                        Secretary shall certify a facility as a rural 
                        emergency hospital if the facility--
                                    ``(I) meets the criteria for rural 
                                emergency hospitals described in 
                                subparagraphs (A) through (E) of 
                                section 1861(iii)(1);
                                    ``(II) either--
                                            ``(aa) is verified by the 
                                        American College of Surgeons as 
                                        having the resources required 
                                        of a level IV trauma center or 
                                        higher; or
                                            ``(bb) employs healthcare 
                                        professionals that successfully 
                                        completed the Advanced Trauma 
                                        Life Support Course offered by 
                                        the American College of 
                                        Surgeons within the preceding 4 
                                        years;
                                    ``(III) has in effect a transfer 
                                agreement with a level I or level II 
                                trauma center; and
                                    ``(IV) meets such staff training 
                                and certification requirements as the 
                                Secretary may require.
            ``(4) Coinsurance.--
                    ``(A) In general.--The amount of payment for rural 
                emergency hospital services or transportation services 
                made to a rural emergency hospital or other provider of 
                ambulance services under this subsection shall be 
                reduced by the coinsurance amount described in 
                subparagraph (B).
                    ``(B) Coinsurance amount.--The coinsurance amount 
                described in this subparagraph, with respect to an item 
                or service provided by a rural emergency hospital or 
                provider of ambulance services, shall be calculated in 
                the same manner as the coinsurance amount for an 
                outpatient critical access hospital service is 
                calculated under section 1866(a)(2).''.
    (b) Waiver of Distance Requirement for Replacement CAHs; Subsequent 
Redesignation of Rural Emergency Hospitals as CAHs.--Section 1820(c)(2) 
of the Social Security Act (42 U.S.C. 1395i-4(c)(2)) is amended--
            (1) in subparagraph (B)(i)(I), by inserting ``subject to 
        subparagraph (F),'' before ``is located''; and
            (2) by adding at the end the following new subparagraphs:
                    ``(F) Option to waive distance requirement.--
                Beginning on the date of the enactment of this 
                subparagraph, for every critical access hospital 
                located in a State that is certified as a rural 
                emergency hospital under section 1834(r)(3)(B), the 
                State shall have the option of waiving the distance 
                requirement described in subparagraph (B)(i)(I) with 
                respect to another facility located in the State that 
                is seeking designation as a critical access hospital 
                under this paragraph.
                    ``(G) Redesignation of a rural emergency hospital 
                as a critical access hospital.--A rural emergency 
                hospital that was previously designated as a critical 
                access hospital under this paragraph may elect to be 
                redesignated as a critical access hospital (in the same 
                manner that the hospital was originally designated as a 
                critical access hospital) at any time, subject to such 
                conditions as the Secretary may establish.''.
    (c) Studies and Reports.--
            (1) Studies.--The Secretary of Health & Human Services 
        shall conduct 3 studies to evaluate the impact of rural 
        emergency hospitals on the availability of health care and 
        health outcomes in rural areas (as defined in section 
        1886(d)(2)(D) of the Social Security Act (42 U.S.C. 1395ww)). 
        The Secretary shall conduct a study--
                    (A) 2 years after the date of the enactment of this 
                Act;
                    (B) 5 years after the date of the enactment of this 
                Act; and
                    (C) 10 years after the date of the enactment of 
                this Act.
            (2) Reports.--Not later than 6 months after each date that 
        the Secretary of Health & Human Services is required to conduct 
        a study under paragraph (1), the Secretary shall submit a 
        report to Congress containing the results of each such study.
    (d) Effective Date.--The amendments made by this section shall 
apply to items and services furnished on or after the date that is 1 
year after the date of the enactment of this Act.

SEC. 4. INCLUSION OF EMERGENCY MEDICINE AS HEALTH SERVICES UNDER THE 
              NATIONAL HEALTH SERVICE CORPS.

    Section 331(a)(3)(D) of the Public Health Service Act (42 U.S.C. 
254d(a)(3)(D)) is amended by inserting ``, and includes emergency 
medicine provided by physicians in a rural emergency hospital (as 
defined in section 1861(iii) of the Social Security Act)'' before the 
period.

SEC. 5. PERMITTING HOSPITALS WITH APPROVED RESIDENCY PROGRAMS IN 
              EMERGENCY MEDICINE TO INCLUDE TIME SPENT BY INTERNS AND 
              RESIDENTS IN THE EMERGENCY DEPARTMENT OF A RURAL HOSPITAL 
              IN FULL-TIME EQUIVALENT COUNT.

    (a) Indirect Medical Education.--Section 1886(d)(5)(B)(iv) of the 
Social Security Act (42 U.S.C. 1395ww(d)(5)(B)(iv)) is amended by 
adding at the end the following new subclause:
            ``(III) Effective for discharges occurring on or after 
        October 1, 2015, all of the time spent in patient care 
        activities in the emergency department of a rural hospital by 
        interns and residents in emergency medicine from a hospital 
        with an approved medical residency training program (as defined 
        in subsection (h)(5)(A)) in such specialty shall be included in 
        determining the number of full-time equivalent interns and 
        residents in such program if the hospital with such program 
        incurs the costs of the stipends and fringe benefits of the 
        interns or residents during the time the interns or residents 
        spend in that rural hospital in accordance with subclause (II). 
        In this subclause, the term `rural hospital' means a hospital 
        that is located in a rural area (as defined for purposes of 
        paragraph (2)(D)).''.
    (b) Direct Medical Education.--Section 1886(h)(4)(E) of the Social 
Security Act (42 U.S.C. 1395(h)(4)) is amended--
            (1) in clause (ii), by striking the period at the end and 
        inserting ``; and'';
            (2) by inserting after clause (ii) the following new 
        clause:
                            ``(iii) effective for cost reporting 
                        periods beginning on or after July 1, 2015, all 
                        of the time so spent in the emergency 
                        department of a rural hospital by residents in 
                        emergency medicine from a hospital with an 
                        approved medical residency training program in 
                        such specialty shall be counted towards the 
                        determination of full-time equivalency in such 
                        program if the hospital with such program bears 
                        all, or substantially all, of the costs of 
                        training such residents in the rural hospital. 
                        In this subparagraph, the term `rural hospital' 
                        means a hospital that is located in a rural 
                        area (as defined for purposes of subsection 
                        (d)(2)(D)).''; and
            (3) by adding at the end the following new sentence: ``For 
        purposes of this subparagraph, the emergency department of a 
        rural hospital described in clause (iii) is a nonprovider 
        setting.''.
answer:
Rural Emergency Acute Care Hospital Act  This bill amends title XVIII (Medicare) of the Social Security Act to designate as a rural emergency hospital any facility that as of December 31, 2014, was:   a critical access hospital (CAH) or a hospital with at most 50 beds located in a county in a rural area or treated as located in a rural area, or one of such hospitals that ceased operations during the period beginning five years before enactment of this Act and ending on December 30, 2014.  A rural emergency hospital:  must provide 24-hour emergency medical care and observation care not exceeding an annual per patient average of 24 hours or more than 1 midnight, does not provide any acute care inpatient beds and has protocols in place for the timely transfer of patients who require acute care inpatient services or other inpatient services, has elected to be designated as a rural emergency hospital, has received approval to operate as one from the state, and is certified by the Department of Health and Human Services (HHS).  Medicare part B (Supplementary Medical Insurance Benefits) shall cover rural emergency hospital emergency services as well as ambulance services provided by a rural emergency hospital or other provider to transport patients who require acute care inpatient services or other inpatient services from the rural emergency hospital to a hospital or a CAH. Payment for rural emergency hospital outpatient services of a rural emergency hospital, including telehealth and ambulance services, shall be 110% percent of their reasonable costs. Rural emergency hospitals must be approved by the state and certified by HHS. States shall have the option of waiving a specified distance requirement between a CAH certified as a rural emergency hospital and another facility located in the state that is seeking designation as a CAH. Primary health services which the National Health Service Corps may provide under the Public Health Service Act shall include emergency medicine provided by physicians in a rural emergency hospital. Hospitals with approved residency programs in emergency medicine shall include time spent by interns and residents in the emergency department of a rural hospital in the full-time equivalent count with respect to reimbursement for the indirect (stipend, fringe benefit) and direct (all or substantially all training) costs of medical education in subsection (d) hospitals. (Generally, a subsection [d] hospital is an acute care hospital, particularly one that receives payments under Medicare's inpatient prospective payment system [IPPS] when providing covered inpatient services to eligible beneficiaries.)


question:
SECTION 1. SHORT TITLE.

    This Act may be cited as the ``International Cooperative 
Antiterrorism Act of 2002''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) The use of terrorism is detestable and an illegitimate 
        means of political expression.
            (2) International terrorist organizations pose a direct 
        threat to the United States, and this threat is becoming more 
        acute and more difficult to prevent.
            (3) The threat from international terrorism is made far 
        more dangerous by the proliferation of chemical, biological, 
        and radiological weapons and the means to produce those 
        weapons.
            (4) The prosecution of the war against international 
        terrorist organizations must continue until those organizations 
        and the threat they pose to the people and interests of the 
        United States are eliminated.
            (5) The United States can only win the war on terrorism if 
        it receives cooperation from other countries and entities.
            (6) Protecting the United States homeland and United States 
        interests overseas from terrorism is of the highest priority in 
        the foreign relations of the United States.
            (7) Cooperation in the global war against international 
        terrorism must be a primary focus of United States foreign 
        relations, United States assistance, and international security 
        relations.
            (8) Winning the war on terrorism requires cooperation from 
        the international community, especially in the areas of 
        preventing the financing of terror, sharing information on 
        international terror networks, eliminating terror cells, and in 
        preventing the promotion of anti-Americanism and the 
        glorification of terrorism in state-owned media and state-
        controlled schools.
            (9) The promotion of terrorism, intolerance, and virulent 
        anti-Americanism in state-owned media and state-controlled 
        education systems is abhorrent and poses a long-term threat to 
        the safety and security of the United States as well as the 
        community of nations.
            (10) All countries and entities must be encouraged to 
        cooperate in the global war on international terrorism.
            (11) Many foreign governments and entities are doing little 
        to counter proterrorist and prointolerance messages to mass 
        audiences, including to school age children.
            (12) Countries providing direct or indirect assistance to 
        international terrorist organizations undermine the direct 
        security interests of the United States.
            (13) Countries demonstrating indifference to or providing 
        actual endorsement of international terror as a legitimate 
        political tool make a direct threat to the security interests 
        of the United States.
            (14) The National Commission on Terrorism established by 
        section 591 of the Foreign Operations Export Financing, and 
        Related Programs Appropriations Act, 1999, as enacted by Public 
        Law 105-277 (112 Stat. 2681-210), concluded that the United 
        States should strengthen its efforts to discourage the broad 
        range of assistance that countries provide to international 
        terrorists.
            (15) The National Commission on Terrorism further 
        recommends that the President make more effective use of 
        authority to designate foreign governments as ``not fully 
        cooperative'' with the United States counterterrorism efforts.
            (16) United States assistance programs and the transfer of 
        United States Munitions List items are a critical tool of 
        United States foreign policy and winning the global war on 
        terrorism.
            (17) Countries receiving United States assistance and the 
        export of items on the United States Munitions List must be 
        obligated to support the global war on international terror.
            (18) Several existing laws, including the USA Patriot Act 
        of 2001, the Antiterrorism and Effective Death Penalty Act of 
        1996, the Foreign Assistance Act of 1961, the Arms Export 
        Control Act, and the Export Administration Act of 1979 (or 
        successor statute), prohibit the provision of United States 
        assistance, and the licensing for export of items on the United 
        States Munitions List, to countries supporting terror or not 
        fully cooperating in antiterror efforts of the United States. 
        These laws should be expanded to include the definition of 
        ``fully cooperative in the global war against international 
        terrorism'' set forth in this Act, including preventing 
        promotion of terror in state-owned and controlled media and 
        educational systems.

SEC. 3. STATEMENT OF POLICY.

    It shall be the policy of the United States that--
            (1) no United States assistance may be provided to any 
        foreign country or entity that is not making a maximum effort 
        to be fully cooperative in the global war against international 
        terrorism; and
            (2) no license for export of an item on the United States 
        Munitions List to a country or entity may be issued if that 
        country or entity is not making a maximum effort to be fully 
        cooperative in the war against international terrorism.

SEC. 4. PROHIBITION ON UNITED STATES ASSISTANCE AND COMMERCIAL ARMS 
              EXPORTS.

    (a) United States Assistance.--No United States assistance, other 
than humanitarian assistance and cooperative nonproliferation and 
counterproliferation programs, may be provided to any country or entity 
if the President determines that such country or entity is not making a 
maximum effort to be fully cooperative in the global war against 
international terrorism.
    (b) Commercial Arms Exports.--No license for the export of an item 
on the United States Munitions List to any country or entity may be 
issued if the President determines that such country or entity is not 
making a maximum effort to be fully cooperative in the global war 
against international terrorism.

SEC. 5. REQUIREMENT FOR AN ANNUAL REPORT.

    (a) Requirement for Report.--The President, in consultation with 
the Secretary of State, the Secretary of the Treasury, the 
Administrator of the United States Agency for International 
Development, and the Director of Central Intelligence, shall prepare an 
annual report that--
            (1) lists each country or entity for which the President 
        has determined that there is credible evidence that such 
        country or entity is not being fully cooperative in the global 
        war against international terrorism under section 4; and
            (2) describes for each country or entity listed under 
        paragraph (1)--
                    (A) the specific failures of each country or entity 
                to be fully cooperative in the global war on 
                international terrorism;
                    (B) the reasons why such country or entity is not 
                fully cooperative;
                    (C) the efforts being made by the United States 
                Government to promote greater adherence by such 
                countries or entities with the global war on 
                international terrorism; and
                    (D) any removal of a country or entity from the 
                list in paragraph (1).
    (b) Dissemination.--The report required by this section shall--
            (1) be submitted to Congress every year by December 31; and
            (2) not be classified, except that the report may contain a 
        classified addendum, if necessary.

SEC. 6. PRESIDENTIAL WAIVER.

    United States assistance or exports prohibited by section 4 may be 
provided to a country or entity described in that section if the 
President--
            (1) determines that permitting such assistance or exports 
        is essential to the national security interests of the United 
        States; and
            (2) not later than 15 days before permitting such 
        assistance or exports, furnishes a report describing the United 
        States assistance or exports to be provided to the appropriate 
        committees of Congress.

SEC. 7. DEFINITIONS.

    In this Act:
            (1) Expression of support for terrorism against the united 
        states.--The term ``expression of support for terrorism against 
        the United States'' means actions or expressions that are 
        designed to provoke anti-American action, especially of a 
        violent nature, or to glorify the use of violence against 
        citizens or government officials of the United States.
            (2) Fully cooperative in the global war against 
        international terrorism.--The term ``fully cooperative in the 
        global war against international terrorism'' means a country or 
        entity that is--
                    (A) preventing the financing of terrorism, 
                including preventing--
                            (i) direct financial payments to any 
                        terrorist organization;
                            (ii) any terrorist organization or any 
                        entity supporting a terrorist organization from 
                        receiving financial services such as brokering, 
                        lending, or transferring currency or credit;
                            (iii) any person from soliciting funds or 
                        items of value for a terrorist group; and
                            (iv) any humanitarian or other 
                        nongovernmental organization from providing 
                        financial support to terrorist organizations;
                    (B) sharing intelligence information with the 
                United States, including--
                            (i) releasing information to the United 
                        States related to any terrorist organization;
                            (ii) cooperating in investigations 
                        conducted by the United States; and
                            (iii) providing, to the extent possible, 
                        individuals suspected of or supporting 
                        terrorist organizations to United States 
                        investigators; and
                    (C) acting against terrorist organizations, 
                including--
                            (i) preventing terrorist organizations from 
                        committing or inciting to commit terrorist acts 
                        against the United States or its interests 
                        overseas;
                            (ii) preventing terrorist organizations 
                        from operating safe houses or providing 
                        transportation, communication, false 
                        documentation, identification, weapons 
                        (including chemical, biological, or 
                        radiological weapons), explosives, or training 
                        to terrorists; and
                            (iii) in the cases of a country--
                                    (I) investigating suspected 
                                terrorists within its national 
                                territory;
                                    (II) enforcing international 
                                agreements and United Nations Security 
                                Council Resolutions against terrorism; 
                                and
                                    (III) curbing any domestic 
                                expression of support for terrorism 
                                against the United States and its 
                                allies in state-owned media, state-
                                sanctioned gatherings, state-governed 
                                religious institutions, and state-
                                sanctioned school and textbooks.
            (3) Humanitarian assistance.--The term ``humanitarian 
        assistance'' means any humanitarian goods and services, 
        including foodstuffs, medicines, and health assistance 
        programs.
            (4) Terrorist organization.--The term ``terrorist 
        organization'' means an organization designated as a foreign 
        terrorist organization by the Secretary of State under section 
        219 of the Immigration and Nationality Act (8 U.S.C. 1189).
            (5) United states assistance.--The term ``United States 
        assistance'' means--
                    (A) any assistance under the Foreign Assistance Act 
                of 1961 (including programs under title IV of chapter 
                2, relating to the Overseas Private Investment 
                Corporation);
                    (B) sales, or financing on any terms, under the 
                Arms Export Control Act;
                    (C) the provision of agricultural commodities, 
                other than food, under the Agricultural Trade 
                Development and Assistance Act of 1954; and
                    (D) financing under the Export-Import Bank Act of 
                1945.
            (6) United states munitions list.--The term ``United States 
        Munitions List'' means the defense articles and defense 
        services controlled by the President under section 38 of the 
        Arms Export Control Act (22 U.S.C. 2778).
answer:
International Cooperative Antiterrorism Act of 2002 - Prohibits the provision of U.S. assistance (except humanitarian assistance and cooperative nonproliferation and counterproliferation programs), or the issuance of a license for the export of an item on the U.S. Munitions List, to any country or entity that the President has determined is not making a maximum effort to be fully cooperative in the global war against international terrorism. Authorizes the President to waive the requirements of this Act in the national security interests of the United States.


question:
SECTION 1. SHORT TITLE, ETC.

    (a) Short Title.--This Act may be cited as the ``Tax Revision Act 
of 2005''.
    (b) Amendment of 1986 Code.--Except as otherwise expressly 
provided, whenever in this Act 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.
    (c) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title, etc.
Sec. 2. Election to include combat pay as earned income for purposes of 
                            earned income credit.
Sec. 3. Cover over of tax on distilled spirits.
Sec. 4. Authority for undercover operations.
Sec. 5. Disclosures of certain tax return information.
Sec. 6. Deduction allowable with respect to income attributable to 
                            domestic production activities in Puerto 
                            Rico.
Sec. 7. Federal guarantee of certain State bonds.
Sec. 8. Certain tax relief related to Hurricanes Rita and Wilma.
Sec. 9. Gulf Coast Recovery Bonds.

SEC. 2. ELECTION TO INCLUDE COMBAT PAY AS EARNED INCOME FOR PURPOSES OF 
              EARNED INCOME CREDIT.

    (a) In General.--Subclause (II) of section 32(c)(2)(B)(vi) is 
amended by striking ``January 1, 2006'' and inserting ``January 1, 
2007''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to taxable years beginning after December 31, 2005.

SEC. 3. COVER OVER OF TAX ON DISTILLED SPIRITS.

    (a) In General.--Paragraph (1) of section 7652(f) (relating to 
limitation on cover over of tax on distilled spirits) is amended by 
striking ``January 1, 2006'' and inserting ``January 1, 2007''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to articles brought into the United States after December 31, 
2005.

SEC. 4. AUTHORITY FOR UNDERCOVER OPERATIONS.

    Paragraph (6) of section 7608(c) (relating to application of 
section) is amended by striking ``January 1, 2006'' both places is 
appears and inserting ``January 1, 2007''.

SEC. 5. DISCLOSURES OF CERTAIN TAX RETURN INFORMATION.

    (a) Disclosures to Facilitate Combined Employment Tax Reporting.--
            (1) In general.--Subparagraph (B) of section 6103(d)(5) 
        (relating to termination) is amended by striking ``December 31, 
        2005'' and inserting ``December 31, 2006''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply to disclosures after December 31, 2005.
    (b) Disclosures Relating to Terrorist Activities.--
            (1) In general.--Clause (iv) of section 6103(i)(3)(C) and 
        subparagraph (E) of section 6103(i)(7) are each amended by 
        striking ``December 31, 2005'' and inserting ``December 31, 
        2006''.
            (2) Effective date.--The amendments made by paragraph (1) 
        shall apply to disclosures after December 31, 2005.
    (c) Disclosures Relating to Student Loans.--
            (1) In general.--Subparagraph (D) of section 6103(l)(13) 
        (relating to termination) is amended by striking ``December 31, 
        2005'' and inserting ``December 31, 2006''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply to requests made after December 31, 2005.

SEC. 6. DEDUCTION ALLOWABLE WITH RESPECT TO INCOME ATTRIBUTABLE TO 
              DOMESTIC PRODUCTION ACTIVITIES IN PUERTO RICO.

    (a) In General.--Subsection (d) of section 199 (relating to 
definitions and special rules) is amended by redesignating paragraph 
(7) as paragraph (8) and by inserting after paragraph (6) the following 
new paragraph:
            ``(7) Treatment of activities in puerto rico.--In the case 
        of any taxpayer with gross receipts for any taxable year from 
        sources within the Commonwealth of Puerto Rico, if all of such 
        receipts are taxable under section 1 or 11 for such taxable 
        year, then for purposes of determining the domestic production 
        gross receipts of such taxpayer for such taxable year under 
        subsection (c)(4), the term `United States' shall include the 
        Commonwealth of Puerto Rico''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to taxable years beginning after December 31, 2005.

SEC. 7. FEDERAL GUARANTEE OF CERTAIN STATE BONDS.

    (a) State Bonds Described.--This section shall apply to a bond 
issued as part of an issue if--
            (1) the issue of which such bond is part is an issue of the 
        State of Alabama, Louisiana, or Mississippi,
            (2) the bond is a general obligation of the issuing State 
        and is in registered form,
            (3) the proceeds of the bond are distributed to one or more 
        political subdivisions of the issuing State,
            (4) the maturity of such bond does not exceed 5 years,
            (5) the bond is issued after the date of the enactment of 
        this Act and before January 1, 2008, and
            (6) the bond is designated by the Secretary of the Treasury 
        for purposes of this section.
    (b) Application.--
            (1) In general.--The Secretary of the Treasury may only 
        designate a bond for purposes of this section pursuant to an 
        application submitted to the Secretary by the State which 
        demonstrates the need for such designation on the basis of the 
        criteria specified in paragraph (2).
            (2) Criteria.--For purposes of paragraph (1), the criteria 
        specified in this paragraph are--
                    (A) the loss of revenue base of one or more 
                political subdivisions of the State by reason of 
                Hurricane Katrina,
                    (B) the need for resources to fund infrastructure 
                within, or operating expenses of, any such political 
                subdivision,
                    (C) the lack of access of such political 
                subdivision to capital, and
                    (D) any other criteria as may be determined by the 
                Secretary.
            (3) Guidance for submission and consideration of 
        applications.--The Secretary of the Treasury shall prescribe 
        regulations or other guidance which provide for the time and 
        manner for the submission and consideration of applications 
        under this subsection.
    (c) Federal Guarantee.--A bond described in subsection (a) is 
guaranteed by the United States in an amount equal to 50 percent of the 
outstanding principal with respect to such bond.
    (d) Aggregate Limit on Bond Designations.--The maximum aggregate 
face amount of bonds which may be issued under this section shall not 
exceed $3,000,000,000.

SEC. 8. CERTAIN TAX RELIEF RELATED TO HURRICANES RITA AND WILMA.

    (a) Special Rule for Determining Earned Income.--
            (1) In general.--In the case of a qualified individual, if 
        the earned income of the taxpayer for the taxable year which 
        includes the applicable date is less than the earned income of 
        the taxpayer for the preceding taxable year, the credits 
        allowed under sections 24(d) and 32 of the Internal Revenue 
        Code of 1986 may, at the election of the taxpayer, be 
        determined by substituting--
                    (A) such earned income for the preceding taxable 
                year, for
                    (B) such earned income for the taxable year which 
                includes the applicable date.
            (2) Qualified individual.--For purposes of this 
        subsection--
                    (A) In general.--The term ``qualified individual'' 
                means any qualified Hurricane Rita individual and any 
                qualified Hurricane Wilma individual.
                    (B) Qualified hurricane rita individual.--The term 
                ``qualified Hurricane Rita individual'' means any 
                individual (other than a qualified Hurricane Katrina 
                individual) whose principal place of abode on September 
                23, 2005, was located--
                            (i) in the Rita GO Zone, or
                            (ii) in the Hurricane Rita disaster area 
                        (but outside the Rita GO Zone) and such 
                        individual was displaced from such principal 
                        place of abode by reason of Hurricane Rita.
                    (C) Qualified hurricane wilma individual.--The term 
                ``qualified Hurricane Wilma individual'' means any 
                individual (other than a qualified Hurricane Katrina 
                individual or a qualified Hurricane Rita individual) 
                whose principal place of abode on October 23, 2005, was 
                located--
                            (i) in the Wilma GO Zone, or
                            (ii) in the Hurricane Wilma disaster area 
                        (but outside the Wilma GO Zone) and such 
                        individual was displaced from such principal 
                        place of abode by reason of Hurricane Wilma.
                    (D) Qualified hurricane katrina individual.--The 
                term ``qualified Hurricane Katrina individual'' has the 
                meaning given such term by section 406 of the Katrina 
                Emergency Tax Relief Act of 2005.
            (3) Applicable date.--For purposes of this subsection, the 
        term ``applicable date'' means--
                    (A) in the case of a qualified Hurricane Rita 
                individual, September 23, 2005, and
                    (B) in the case of a qualified Hurricane Wilma 
                individual, October 23, 2005.
            (4) Rita and wilma go zone; etc.--For purposes of this 
        subsection--
                    (A) Rita go zone.--The term ``Rita GO Zone'' means 
                that portion of the Hurricane Rita disaster area 
                determined by the President to warrant individual or 
                individual and public assistance from the Federal 
                Government under the Robert T. Stafford Disaster Relief 
                and Emergency Assistance Act by reason of Hurricane 
                Rita.
                    (B) Hurricane rita disaster area.--The term 
                ``Hurricane Rita disaster area'' means an area with 
                respect to which a major disaster has been declared by 
                the President, before October 6, 2005, under section 
                401 of such Act by reason of Hurricane Rita.
                    (C) Wilma go zone.--The term ``Wilma GO Zone'' 
                means that portion of the Hurricane Wilma disaster area 
                determined by the President to warrant individual or 
                individual and public assistance from the Federal 
                Government under such Act by reason of Hurricane Wilma.
                    (D) Hurricane wilma disaster area.--The term 
                ``Hurricane Wilma disaster area'' means an area with 
                respect to which a major disaster has been declared by 
                the President, before November 14, 2005, under section 
                401 of such Act by reason of Hurricane Wilma.
            (5) Earned income.--For purposes of this subsection, the 
        term ``earned income'' has the meaning given such term under 
        section 32(c) of the Internal Revenue Code of 1986.
            (6) Special rules.--
                    (A) Application to joint returns.--For purposes of 
                paragraph (1), in the case of a joint return for a 
                taxable year which includes the applicable date--
                            (i) such paragraph shall apply if either 
                        spouse is a qualified individual, and
                            (ii) the earned income of the taxpayer for 
                        the preceding taxable year shall be the sum of 
                        the earned income of each spouse for such 
                        preceding taxable year.
                    (B) Uniform application of election.--Any election 
                made under paragraph (1) shall apply with respect to 
                both section 24(d) and section 32 of the Internal 
                Revenue Code of 1986.
                    (C) Errors treated as mathematical error.--For 
                purposes of section 6213 of the Internal Revenue Code 
                of 1986, an incorrect use on a return of earned income 
                pursuant to paragraph (1) shall be treated as a 
                mathematical or clerical error.
                    (D) No effect on determination of gross income, 
                etc.--Except as otherwise provided in this subsection, 
                the Internal Revenue Code of 1986 shall be applied 
                without regard to any substitution under paragraph (1).
    (b) Secretarial Authority to Make Adjustments Regarding Taxpayer 
and Dependency Status.--With respect to taxable years beginning in 2005 
or 2006, the Secretary of the Treasury may make such adjustments in the 
application of the internal revenue laws as may be necessary to ensure 
that taxpayers do not lose any deduction or credit or experience a 
change of filing status by reason of temporary relocations by reason of 
Hurricane Rita or Hurricane Wilma. Any adjustments made under the 
preceding sentence shall ensure that an individual is not taken into 
account by more than one taxpayer with respect to the same tax benefit.

SEC. 9. GULF COAST RECOVERY BONDS.

    It is the sense of the Congress that the Secretary of the Treasury, 
or the Secretary's delegate, should designate one or more series of 
bonds or certificates (or any portion thereof) issued under section 
3105 of title 31, United States Code, as ``Gulf Coast Recovery Bonds'' 
in response to Hurricanes Katrina, Rita, and Wilma.
answer:

Tax Revision Act of 2005 - Amends the Internal Revenue Code to extend through 2006 the: (1) election to include combat zone compensation as earned income for purposes of calculating the earned income tax credit; (2) increased cover over (payment) of distilled spirits excise tax to the Treasuries of Puerto Rico and the Virgin Islands; (3) authority for certain Internal Revenue Service (IRS) undercover investigative operations; and (4) authority to disclose tax return information for combined employment tax reporting, for combating terrorist activities, and for student loan repayments.

Extends eligibility for the tax deduction for domestic production activities to such activities in Puerto Rico.

Grants a limited federal guarantee of bonds issued by the states of Alabama, Louisiana, or Mississippi for Hurricane Katrina relief.

Allows a taxpayer election to base eligibility for the earned income and child tax credit on earned income reported in a year preceding the year of Hurricanes Rita and Wilma. Authorizes the Secretary of the Treasury to adjust the application of tax laws to prevent taxpayers affected by Hurricanes Rita or Wilma from losing certain tax benefits.

Expresses the sense of Congress that the Secretary should designate a series of bonds as Gulf Coast Recovery Bonds in response to Hurricanes Katrina, Rita, and Wilma.