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Q: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Urgent Counter-Terrorism 
Supplemental Appropriations Act, 2002''.

SEC. 2. STATEMENT OF APPROPRIATION.

    The following sums are appropriated, out of any money in the 
Treasury not otherwise appropriated, for fiscal year 2002, and for 
other purposes.

             TITLE I--APPROPRIATION AND TRANSFERS OF FUNDS

SEC. 101. APPROPRIATION.

    In addition to the amounts provided in any other Act, there is 
hereby appropriated $6,548,000,000 to the ``Defense Emergency Response 
Fund'' only for the purpose of upgrading critical defense and 
intelligence capabilities to fight the war on terrorism and to recover 
from the attacks of September 11, 2001.

SEC. 102. TRANSFERS OF FUNDS.

    Notwithstanding any other provision of law or this Act, within 15 
days after the President makes an emergency designation under section 
301 for any amount specified in any section of title II, the Secretary 
of Defense shall transfer the requisite funds appropriated by section 
101 to appropriate accounts in the Treasury in accordance with the 
allocations specified in title II.

                     TITLE II--ALLOCATION OF FUNDS

SEC. 201. ANTI-TERRORISM INTELLIGENCE UPGRADES.

    To upgrade and improve the effectiveness of counter-terrorism 
intelligence collection and analysis, to better protect intelligence 
resources from terrorist attack, and to accelerate the installation of 
real-time linkages between intelligence systems and military 
warfighting platforms, $2,001,000,000 of the funds appropriated in 
section 101 shall be allocated as follows:
            (1) $368,000,000 shall be available only to improve 
        Department of Defense and intelligence agency human 
        intelligence collection capabilities against terrorist 
        organizations to include additional manpower, additional 
        analytical capability, and agent operation expenses.
            (2) $245,000,000 shall be available only to the Director of 
        Central Intelligence to support critical foreign counter-
        intelligence force protection requirements and to provide 
        additional counter-terrorism assistance to the Federal Bureau 
        of Investigation in accordance with law.
            (3) $80,000,000 shall be available only to the Director of 
        Central Intelligence to upgrade counter-terrorism intelligence 
        tasking, processing, exploitation, and dissemination 
        capabilities.
            (4) $55,000,000 shall be available only to the Secretary of 
        Defense to upgrade counter-terrorism intelligence tasking, 
        processing, exploitation, and dissemination capabilities.
            (5) $497,000,000 shall be available only to procure and 
        support the enhancement and deployment of additional 
        Intelligence, Surveillance, and Reconnaissance assets in 
        support of Operation Enduring Freedom and follow-on anti-
        terrorist operations.
            (6) $159,000,000 shall be available only to enhance Navy 
        and Air Force electronic networking of assets and time critical 
        targeting capabilities.
            (7) $182,000,000 shall be available only to procure Link 16 
        systems for tactical ISR platforms to allow real time data 
        exchange between combat and command and control platforms.
            (8) $415,000,000 shall be available only to the Director of 
        Central Intelligence, in consultation with the Secretary of 
        Defense, for intelligence agency physical security upgrades, 
        data survivability/continuity enhancements, and satellite 
        infrastructure improvements.

SEC. 202. CHEMICAL AND BIOLOGICAL WARFARE DEFENSE CAPABILITIES.

    To upgrade and improve the ability of the United States to detect, 
prevent and respond to chemical and biological warfare terrorist 
attacks at home and abroad, $817,000,000 of the funds appropriated in 
section 101 shall be allocated as follows:
            (1) $307,000,000 shall be available only for rapid 
        development and/or procurement and deployment of biological 
        weapons detection systems and chemical/biological 
        decontamination equipment at key military and civilian 
        facilities.
            (2) $82,000,000 shall be available only to accelerate 
        production of anthrax vaccines and smallpox vaccine samples, to 
        develop next generation anthrax vaccines, and to develop, test, 
        evaluate and procure new drug therapies to counter biological 
        threat agents.
            (3) $185,000,000 shall be available only to equip existing 
        Army National Guard Weapons of Mass Destruction Civil Support 
        teams (WMD-CST teams) with mobile analytical laboratory 
        capabilities and to establish, train and equip additional WMD-
        CST teams in the following States and territories in order to 
        complete the objective of establishing WMD-CST teams in each 
        State and territory:
                    (A) Alabama.
                    (B) Connecticut.
                    (C) Delaware.
                    (D) District of Columbia.
                    (E) Indiana.
                    (F) Kansas.
                    (G) Maryland.
                    (H) Michigan.
                    (I) Mississippi.
                    (J) Montana.
                    (K) Nebraska.
                    (L) New Hampshire.
                    (M) New Jersey.
                    (N) Nevada.
                    (O) North Carolina.
                    (P) North Dakota.
                    (Q) Oregon.
                    (R) Rhode Island.
                    (S) South Dakota.
                    (T) Tennessee.
                    (U) Utah.
                    (V) Vermont.
                    (W) West Virginia.
                    (X) Wisconsin.
                    (Y) Wyoming.
                    (Z) American Samoa.
                    (AA) Guam.
                    (BB) Puerto Rico and Virgin Islands.
            (4) $40,000,000 shall be available only for biological 
        weapons proliferation prevention activities under the 
        Cooperative Threat Reduction Program. Of such funds, 
        $30,000,000 shall be transferred to ``Department of State--
        Nonproliferation, Anti-Terrorism, Demining, and Related 
        Programs'' only for the purpose of supporting expansion of the 
        Biological Weapons Redirect and International Science and 
        Technology Centers programs to prevent former Soviet weapons 
        experts from emigrating to proliferant States and to 
        reconfigure former Soviet biological weapons production 
        facilities for peaceful uses.
            (5) $68,000,000 shall be available only to support and 
        equip Marine Corps and Army chemical/biological warfare 
        response teams, including the procurement of additional mobile 
        decontamination units for these teams.
            (6) $25,000,000 shall be available only for the Army 
        Chemical Stockpile Emergency Preparedness Program for State and 
        Federal technical assistance projects to ensure public safety 
        at chemical weapons storage facilities in the following States:
                    (A) Alabama.
                    (B) Arkansas.
                    (C) Colorado.
                    (D) Illinois.
                    (E) Indiana.
                    (F) Maryland.
                    (G) Kentucky.
                    (H) Oregon.
                    (I) Utah.
                    (J) Washington.
            (7) $60,000,000 shall be available only for the procurement 
        of interoperable communications equipment to enable Army 
        emergency response teams to communicate with local emergency 
        response personnel.
            (8) $50,000,000 shall be available only to implement short-
        term facility repairs and improvements at the biocontainment 
        research laboratories of the Army Medical Research Institute of 
        Infectious Disease at Fort Detrick, Maryland, and the 
        facilities of the Army Institute of Pathology (AFIP) at the 
        Walter Reed Medical Center for the purpose of improving quick 
        response to demands for confirmatory and diagnostic testing of 
        potential biological threats and to accelerate the development 
        of treatments and vaccines against biological agents.

SEC. 203. SPECIAL FORCES COUNTER-TERRORISM CAPABILITY.

    To upgrade and improve the ability of Special Forces to 
successfully operate in Operation Enduring Freedom and future anti-
terrorist operations, $755,000,000 of the funds appropriated in section 
101 shall be allocated as follows:
            (1) $50,000,000 shall be available only for the procurement 
        of AN/PRC 112B survival radios for SOF rescue/extraction teams 
        to provide geo-location and low probability of intercept/
        detection communications capability.
            (2) $90,000,000 shall be available only to procure common 
        missile warning systems and improved conventional munitions 
        dispensers for the MH-47 and MH-60 aircraft to enhance rotary 
        wing survivability.
            (3) $125,000,000 shall be available only to support 
        counter-terrorism full mission profile training to increase the 
        probability of mission success and decrease the possibility of 
        fratricide and to provide for shortfalls in flying hours 
        necessary to conduct such training and operations.
            (4) $125,000,000 shall be available only to support 
        survivability and mission enhancement upgrades for C-130, MH-
        53, and other SOF aircraft.
            (5) $165,000,000 shall be available only to procure 
        nonstandard weapons and ammunition, unconventional equipment 
        and supplies, and other SOF unique counter-terrorism 
        enhancements to current capabilities.
            (6) $200,000,000 shall be available only for SOCOM 
        equipment sustainment and refurbishment, and for procurement of 
        additional equipment.

SEC. 204. MUNITIONS AND ESSENTIAL EQUIPMENT REPLENISHMENT AND UPGRADES.

    To ensure an adequate supply of precision guided weapons and other 
weapons and munitions to fully prosecute Operation Enduring Freedom and 
future potential anti-terrorist operations, and to provide for the 
rapid development and deployment of promising anti-terrorist weapons, 
WMD defense capabilities, and added support to key tactical warfare 
systems, $912,000,000 of the funds appropriated in section 101 shall be 
allocated as follows:
            (1) $250,000,000 shall be available only to accelerate the 
        development and procurement of the tactical tomahawk cruise 
        missile.
            (2) $180,000,000 shall be available only for the 
        procurement of laser-guided bomb kits.
            (3) $125,000,000 shall be available only for procurement of 
        Army and Marine Corps small arms, small arms ammunition, and 
        night vision equipment.
            (4)(A) $250,000,000 shall be available only to 
        ``Operational Rapid Response Transfer Fund'', to remain 
        available for obligation until September 30, 2002, only for the 
        accelerated research, development, test, evaluation, 
        procurement, or deployment of military technologies, systems, 
        or other equipment necessary for improving the capability to 
        fight terrorism, protect the force, prepare for and respond to 
        terrorist attacks, or improve the capabilities of key tactical 
        systems.
            (B) The Secretary of Defense may transfer funds under this 
        paragraph only to operation and maintenance accounts, 
        procurement accounts, or research, development, test and 
        evaluation accounts.
            (C) Of the funds under this paragraph, $75,000,000 shall be 
        available only to support quick reaction activities to develop 
        and deploy promising new weapons and other WMD defense 
        capabilities that are recommended by the Department of Defense 
        Combating Terrorism Technology Task Force.
            (D) The Secretary of Defense shall provide 
written notification to the congressional defense committees prior to 
the transfer of any amount under this paragraph in excess of $5,000,000 
to a specific program, project, or activity.
            (E) None of the funds under this paragraph may be obligated 
        for new start projects without prior notification to the 
        congressional defense committees in conformance with normal 
        reprogramming procedures and guidelines.
            (5) $107,000,000 shall be available only to improve secure 
        communications capabilities of the Army Reserve components by 
        providing hardening, redundancy, storage, and information 
        assurance for network infrastructure.

SEC. 205. FORCE PROTECTION AND RECOVERY ACTIVITIES.

    To upgrade physical security at Department of Defense and 
intelligence agency installations, and to accelerate efforts to repair, 
reconstruct, and renovate the Pentagon Reservation, $966,000,000 of the 
funds appropriated in section 101 shall be allocated as follows:
            (1)(A) $800,000,000 shall be available only to finance 
        accelerated building renovation activities for military command 
        centers and related activities at the Pentagon Reservation in 
        order to accelerate completion of the Pentagon renovation 
        project by at least 4 years from the current estimated 
        completion date of 2014.
            (B) None of the funds under this paragraph shall be 
        obligated until 15 days after the Secretary of Defense has 
        submitted to the Congress a revised Pentagon renovation plan to 
        include estimated total costs by year and by function, a 
        comprehensive construction schedule, an assessment of the 
        security and operational benefits derived from an accelerated 
        schedule, and a certification that it is the Secretary's best 
        estimate that expenditure of such funds will accelerate the 
        final completion of the Pentagon renovation by at least 4 
        years.
            (2) $45,000,000 shall be available only to procure patrol 
        boat equipment in support of enhanced Navy capabilities to 
        maintain threat standoff distances in foreign ports.
            (3) $30,000,000 shall be available only to procure security 
        equipment identified by the Navy to be necessary to increase 
        the security of military sealift ships.
            (4) $25,000,000 shall be available only to upgrade 
        firefighting self contained breathing equipment on Navy surface 
        ships.
            (5) $31,000,000 shall be available only for Navy and Air 
        Force anti-access equipment.
            (6) $25,000,000 shall be available only for Army anti-
        access equipment.
            (7) $10,000,000 shall be available only to modernize the 
        USS Comfort and USS Mercy hospital ships.

SEC. 206. ESSENTIAL AIRCRAFT UPGRADES.

    To make essential upgrades and improvements in aircraft 
capabilities for operating in the Central Asia region, $602,000,000 of 
the funds appropriated in section 101 shall be allocated as follows:
            (1) $88,000,000 shall be available only for the procurement 
        of additional decoys, armor, and other self-protection upgrades 
        for Air Force aircraft.
            (2) $55,000,000 shall be available only for the procurement 
        of additional laser detecting sets and other self protection 
        and engine upgrades for Army (including SOCOM) helicopters.
            (3) $48,000,000 shall be available only for the procurement 
        of crashworthy UH-60 helicopter extended range fuel tanks.
            (4) $129,000,000 shall be available only to accelerate 
        planned electronic self protection, communications, navigation, 
        and engine upgrade modifications to combat search and rescue 
        helicopters.
            (5) $67,000,000 shall be available only to procure 
        additional Litening targeting pods for AV-8B Harrier aircraft.
            (6) $70,000,000 shall be available only to upgrade 
        strategic communications systems for the national airborne 
        command post.
            (7) $145,000,000 shall be available only to improve the 
        reliability of B-52 electronics and the maintainability of B-2 
        surfaces.

SEC. 207. OPERATION ENDURING FREEDOM OPERATIONAL COSTS.

    To ensure that the military services are not required to make 
reductions in essential training, readiness, equipment maintenance, 
quality of life, or research and development programs in order to pay 
for the unbudgeted and unpredictable operational costs of Operation 
Enduring Freedom, and to ensure that the aging equipment being used in 
Operation Enduring Freedom is properly maintained, $495,000,000 of the 
funds appropriated in section 101 shall be allocated as follows:
            (1) $220,000,000 shall be available only to supplement the 
        defense working capital funds for increased fuel, base 
        operations, and training costs.
            (2) $200,000,000 shall be available only for additional 
        spare parts to support Operation Enduring Freedom.
            (3) $75,000,000 shall be available only for increased depot 
        maintenance requirements resulting from Operations Noble Eagle 
        and Enduring Freedom.

                     TITLE III--GENERAL PROVISIONS

SEC. 301. EMERGENCY DESIGNATION.

    The entire amount specified in any section of title II--
            (1) is designated by the Congress as an emergency 
        requirement pursuant to section 251(b)(2)(A) of the Balanced 
        Budget and Emergency Deficit Control Act of 1985; and
            (2) shall be available only if an official budget request 
        for the entire amount contained in such section, that includes 
        designation of the entire amount as an emergency requirement as 
        defined in the Balanced Budget and Emergency Deficit Control 
        Act of 1985, is transmitted by the President to the Congress.

SEC. 302. REPORTING REQUIREMENT.

    Within 15 days after the President makes an emergency designation 
under section 301 for the amount specified in any section of title II, 
the Secretary of Defense shall provide to the Congress a report 
specifying the accounts to which the funds involved are to be 
transferred and project level budget justifications for each transfer.

SEC. 303. MERGER OF AMOUNTS.

    Funds transferred under this Act shall be merged with, and shall be 
available for the same time period as, the appropriations to which the 
funds are transferred.

SEC. 304. AUTHORIZATION OF FUNDS FOR INTELLIGENCE ACTIVITIES.

    Funds transferred under this Act to accounts for intelligence 
activities are deemed to be specifically authorized by the Congress for 
purposes of section 504 of the National Security Act of 1947 (50 U.S.C. 
414).

A: Urgent Counter-Terrorism Supplemental Appropriations Act, 2002 - Appropriates additional funds for FY 2002 to the Defense Emergency Response Fund solely for upgrading critical defense and intelligence capabilities to fight the war on terrorism and recover from the terrorist attacks of September 11, 2001.Allocates such funds to the following categories: (1) anti-terrorism intelligence upgrades, including funds for the Department of Defense and the Central Intelligence Agency; (2) chemical and biological warfare defense capabilities, including funds for detection systems, vaccines, mobile laboratories, and public safety at chemical weapons storage facilities; (3) special forces counter-terrorism capability, including for survival radios, common missile warning systems, and nonstandard and unconventional weapons and equipment; (4) munitions and essential equipment replenishment and upgrades; (5) force protection and recovery activities, including renovations of the Pentagon Reservation; (6) essential aircraft upgrades; and (7) Operation Enduring Freedom operational costs.Designates all such funds as an emergency requirement under the Balanced Budget and Emergency Deficit Control Act of 1985, limiting their availability unless Congress receives a presidential budget request for the entire amount in such category.
****
Q: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Pension Interest Rate Relief Act of 
2002''.

SEC. 2. INTEREST RATE RANGE FOR ADDITIONAL FUNDING REQUIREMENTS.

    (a) Amendments to the Internal Revenue Code of 1986.--
            (1) Special rule.--Clause (i) of section 412(l)(7)(C) of 
        the Internal Revenue Code of 1986 (relating to interest rate) 
        is amended by adding at the end the following new subclause:
                                    ``(III) Special rule for 2001 
                                through 2004.--For a plan year 
                                beginning in 2001, 2002, 2003 or 2004, 
                                notwithstanding subclause (I), in the 
                                case that the rate of interest used 
                                under subsection (b)(5) exceeds the 
                                highest rate permitted under subclause 
                                (I), the rate of interest used to 
                                determine current liability under this 
                                subsection may exceed the rate of 
                                interest otherwise permitted under 
                                subclause (I); except that such rate of 
                                interest shall not exceed 120 percent 
                                of the weighted average referred to in 
                                subsection (b)(5)(B)(ii).''
            (2) Quarterly contributions.--Subsection (m) of section 412 
        of such Code is amended by adding at the end the following new 
        paragraph:
            ``(7) Special rule for 2005.--In any case in which the 
        interest rate used to determine current liability is determined 
        under subsection (l)(7)(C)(i)(III) for purposes of applying 
        paragraphs (1) and (4)(B)(ii) for plan years beginning in 2005, 
        the current liability for the preceding plan year shall be 
        redetermined using 105 percent as the specified percentage 
        determined under subsection (l)(7)(C)(i)(II).''
    (b) Amendments to the Employee Retirement Income Security Act of 
1974.--
            (1) Special rule.--Clause (i) of section 302(d)(7)(C) of 
        the Employee Retirement Income Security Act of 1974 (29 U.S.C. 
        1082(d)(7)(C)) is amended by adding at the end the following 
        new subclause:
                                    ``(III) Special rule for 2001 
                                through 2004.--For a plan year 
                                beginning in 2001, 2002, 2003 or 2004, 
                                notwithstanding subclause (I), in the 
                                case that the rate of interest used 
                                under subsection (b)(5) exceeds the 
                                highest rate permitted under subclause 
                                (I), the rate of interest used to 
                                determine current liability under this 
                                subsection may exceed the rate of 
                                interest otherwise permitted under 
                                subclause (I); except that such rate of 
                                interest shall not exceed 120 percent 
                                of the weighted average referred to in 
                                subsection (b)(5)(B)(ii).''
            (2) Quarterly contributions.--Subsection (e) of section 302 
        of such Act (29 U.S.C. 1082) is amended by adding at the end 
        the following new paragraph:
            ``(7) Special rule for 2005.--In any case in which the 
        interest rate used to determine current liability is determined 
        under subsection (d)(7)(C)(i)(III) for purposes of applying 
        paragraphs (1) and (4)(B)(ii) for plan years beginning in 2005, 
        the current liability for the preceding plan year shall be 
        redetermined using 105 percent as the specified percentage 
        determined under subsection (d)(7)(C)(i)(II).''
    (c) PBGC.--Clause (iii) of section 4006(a)(3)(E) of the Employee 
Retirement Income Security of Act 1974 (29 U.S.C. 1306(a)(3)(E)) is 
amended by adding at the end the following new subclause:
    ``(IV) In the case of plan years beginning after December 31, 2001, 
and before January 1, 2005, subclause (II) shall be applied by 
substituting `100 percent' for `85 percent' and by substituting `115 
percent' for `100 percent'. Subclause (III) shall be applied for such 
years without regard to the preceding sentence. Any reference to this 
clause by any other sections or subsections (other than sections 4010, 
4011 and 4043) shall be treated as a reference to this clause without 
regard to this subclause.''
    (d) Amendments to Retirement Protection Act of 1994.--
            (1) Transition rule made permanent.--Paragraph (1) of 
        section 769(c) of the Retirement Protection Act of 1994 is 
        amended--
                    (A) by striking ``transition'' each place it 
                appears in the heading and the text, and
                    (B) by striking ``for any plan year beginning after 
                1996 and before 2010''.
            (2) Special rules.--Paragraph (2) of section 769(c) of the 
        Retirement Protection Act of 1994 is amended to read as 
        follows:
            ``(2) Special rules.--The rules described in this paragraph 
        are as follows:
                    ``(A) For purposes of section 412(l)(9)(A) of the 
                Internal Revenue Code of 1986 and section 302(d)(9)(A) 
                of the Employee Retirement Income Security Act of 1974, 
                the funded current liability percentage for any plan 
                year shall be treated as not less than 90 percent.
                    ``(B) For purposes of section 412(m) of the 
                Internal Revenue Code of 1986 and section 302(e)(9) of 
                the Employee Retirement Income Security Act of 1974, 
                the funded current liability percentage for any plan 
                year shall be treated as not less than 100 percent.
                    ``(C) For purposes of determining unfunded vested 
                benefits under section 4006(a)(3)(E)(iii) of the 
                Employee Retirement Income Security Act of 1974, the 
                mortality table shall be the mortality table used by 
                the plan.''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to plan years beginning after December 31, 2001.

A: Pension Interest Rate Relief Act of 2002 - Amends the Internal Revenue Code and Employee Retirement Income Security Act of 1974 by increasing, for plan years beginning 2001 through 2004, the permissible interest rate range used to determine additional funding requirements for certain benefit plans which are not multiemployer plans.Sets forth a special rule regarding the interest rate used to determine liability for plan years beginning in 2005.Amends the Retirement Protection Act of 1994 to establish special rules relating to funding liability percentages and the mortality table to be used for purposes of determining unfunded vested benefits.
****
Q: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Partial Hospitalization Services 
Integrity Act of 1999''.

SEC. 2. LIMITATION ON LOCATION OF PROVISION OF SERVICES.

    (a) In General.--Section 1861(ff)(2) of the Social Security Act (42 
U.S.C. 1395x(ff)(2)) is amended in the matter following subparagraph 
(I)--
            (1) by striking ``and furnished'' and inserting 
        ``furnished''; and
            (2) by inserting before the period the following: ``, and 
        furnished other than in a skilled nursing facility, residential 
        treatment facility or other residential setting (as determined 
        by the Secretary)''.
    (b) Effective Date.--The amendments made by subsection (a) apply 
with respect to partial hospitalization services furnished on or after 
the first day of the third month beginning after the date of the 
enactment of this Act.

SEC. 3. QUALIFICATIONS FOR COMMUNITY MENTAL HEALTH CENTERS.

    (a) In General.--Section 1861(ff)(3)(B) of the Social Security Act 
(42 U.S.C. 1395x(ff)(3)(B)) is amended by striking ``entity'' and all 
that follows and inserting the following: ``entity that--
            ``(i)(I) provides the mental health services described in 
        section 1913(c)(1) of the Public Health Service Act; or
            ``(II) in the case of an entity operating in a State that 
        by law precludes the entity from providing a service described 
        in such section itself, provides for such service by contract 
        with an approved organization or entity (as determined by the 
        Secretary);
            ``(ii) meets applicable licensing or certification 
        requirements for community mental health centers in the State 
        in which it is located; and
            ``(iii) meets such additional conditions as the Secretary 
        shall specify to ensure (I) the health and safety of 
        individuals being furnished such services, (II) the effective 
        and efficient furnishing of such services, and (III) the 
        compliance of such entity with the criteria described in such 
        section.''.
    (b) Clarification of Criteria for Community Mental Health 
Centers.--Section 1913(c)(1)(E) of the Public Health Service Act (42 
U.S.C. 300x-3(c)(1)(E)) is amended to read as follows:
                    ``(E) Determining the clinical appropriateness of 
                admissions to any inpatient psychiatric hospitals by 
                engaging a full-time mental health professional who is 
                licensed or certified to make such a determination by 
                the State involved.''.
    (c) Effective Date.--The amendments made by this section apply with 
respect to community mental health centers furnishing services under 
the medicare program on or after the first day of the third month 
beginning after the date of the enactment of this Act.

SEC. 4. GUIDELINES FOR ITEMS AND SERVICES COMPRISING PARTIAL 
              HOSPITALIZATION SERVICES.

    Not later than 180 days after the date of the enactment of this 
Act, the Secretary shall first adopt national coverage and 
administrative policies for partial hospitalization services furnished 
under title XVIII of the Social Security Act, using a negotiated 
rulemaking process under subchapter III of chapter 5 of title 5, United 
States Code.

SEC. 5. REFINEMENT OF PERIODICITY OF REVIEW OF PLAN FOR PARTIAL 
              HOSPITALIZATION SERVICES.

    (a) In General.--Section 1835(a)(2)(F)(ii) of the Social Security 
Act (42 U.S.C. 1395n(a)(2)(F)(ii)) is amended by inserting ``at a 
reasonable rate (as determined by the Secretary)'' after ``is reviewed 
periodically''.
    (b) Effective Date.--The amendment made by subsection (a) applies 
with respect to plans for furnishing partial hospitalization services 
established on or after the first day of the third month beginning 
after the date of the enactment of this Act.

SEC. 6. RECERTIFICATION OF PROVIDERS OF PARTIAL HOSPITALIZATION 
              SERVICES.

    (a) In General.--With respect to each community mental health 
center that furnishes partial hospitalization services for which 
payment is made under title XVIII of the Social Security Act, the 
Secretary of Health and Human Services shall provide for periodic 
recertification to ensure that the provision of such services complies 
with applicable requirements of such title.
    (b) Deadline for First Recertification.--The first recertification 
under subsection (a) shall be completed not later than one year after 
the date of the enactment of this Act.

SEC. 7. CIVIL MONETARY PENALTIES FOR FALSE CERTIFICATION OF ELIGIBILITY 
              FOR HOSPICE CARE OR PARTIAL HOSPITALIZATION SERVICES.

    (a) In General.--Section 1128A(b)(3) of the Social Security Act (42 
U.S.C. 1320a-7a(b)(3)) is amended--
            (1) in subparagraph (A)(ii), by inserting ``, hospice care, 
        or partial hospitalization services'' after ``home health 
        services''; and
            (2) in subparagraph (B), by inserting ``, section 
        1814(a)(7) in the case of hospice care, or section 
        1835(a)(2)(F) in the case of partial hospitalization services'' 
        after ``in the case of home health services''.
    (b) Effective Date.--The amendments made by subsection (a) apply 
with respect to certifications of eligibility for hospice care or 
partial hospitalization services under the medicare program made on or 
after the first day of the third month beginning after the date of the 
enactment of this Act.

SEC. 8. DEMONSTRATION FOR COST EFFECTIVE WRAP AROUND MENTAL HEALTH 
              SERVICES.

    (a) Establishment.--
            (1) In general.--The Secretary of Health and Human Services 
        shall implement a demonstration project (in this section 
        referred to as the ``project'') under part B of title XVIII of 
        the Social Security Act under which community mental health 
        centers may offer wrap around mental health services (as 
        defined in paragraph (2)(A)) for purposes of providing for a 
        full continuum of ambulatory behavioral health care services.
            (2) Definitions.--
                    (A) Wrap around mental health services defined.--
                The term ``wrap around mental health services'' means 
                comprehensive outpatient mental health services 
                furnished to an individual pursuant to an 
                individualized treatment plan developed by a mental 
                health professional, in consultation with the family of 
                the individual (if available). Such services are 
                furnished to the individual through a comprehensive, 
                multidisciplinary health and social services delivery 
                system that provides coordinated therapeutic 
                interventions, including medical services, 
                psychotherapy services, occupational therapy services, 
                and social work services.
                    (B) Licensed mental health professional.--The term 
                ``mental health professional'' means any of the 
                following individuals who are licensed by the State in 
                which the individual furnishes services (as that term 
                is defined in paragraphs (1), (2)(M), and (2)(N) of 
                section 1861(s) of the Social Security Act (42 U.S.C. 
                1395x(s))) to design and execute treatment plans 
                described in subparagraph (A) without the supervision 
                of another health care practitioner:
                            (i) A physician, as defined in section 
                        1861(r)(1) of such Act (42 U.S.C. 1395x(r)(1)).
                            (ii) A clinical psychologist, as defined by 
                        the Secretary pursuant to section 1861(ii) of 
                        such Act (42 U.S.C. 1395x(ii)).
                            (iii) A clinical social worker, as defined 
                        in section 1861(hh) of such Act (42 U.S.C. 
                        1395x(hh)).
    (b) Selection of Centers.--For purposes of implementing such 
project, the Secretary shall select for participation in the project 
community mental health centers that serve populations in three 
different States, one of which predominantly serves rural populations.
    (c) Capitated Payment.--The Secretary shall establish and make 
prospective monthly payments of a capitation amount for individuals 
receiving wrap around mental health services under this project.
    (d) Evaluation and Report.--
            (1) Evaluation.--The Secretary shall evaluate the project. 
        Such evaluation shall include an examination of--
                    (A) the project's effect on the health, well-being, 
                condition, and functional level of beneficiaries 
                receiving wrap around mental health services;
                    (B) any savings to the medicare program by reason 
                of capitated payments for wrap around medical services 
                consisting of partial hospitalization services (as that 
                term is defined in section 1861(ff) of the Social 
                Security Act (42 U.S.C. 1395x(ff));
                    (C) the impact of basing payment for such services 
                on a capitated basis; and
                    (D) the project's effect on utilization of 
                inpatient services (including inpatient mental health 
                services) and associated costs.
            (2) Report.--Not later than four years after the date of 
        the enactment of this Act, the Secretary shall submit to 
        Congress a report containing a statement of the findings and 
        conclusions of the Secretary pursuant to the evaluation 
        conducted under paragraph (1), together with any 
        recommendations for legislation the Secretary considers 
        appropriate with respect to--
                    (A) the provision of additional mental health 
                services by community mental health centers under 
                partial hospitalization services; and
                    (B) payment for such services on a capitated basis.
    (e) Duration.--The project shall be conducted for a three year 
period.
    (f) Funding.--The Secretary shall provide for the transfer from the 
Federal Hospital Insurance Trust Fund, established under section 1817 
of the Social Security Act (42 U.S.C. 1395i), of such funds as are 
necessary for the costs of carrying out the demonstration project under 
this section.

A:
Partial Hospitalization Services Integrity Act of 1999 - Amends title XVIII (Medicare) of the Social Security Act to provide for the following: (1) denial of Medicare coverage for partial hospitalization services (for psychiatric treatment) furnished in a skilled nursing facility, a residential treatment facility, or any other type of residential setting determined by the Secretary of Health and Human Services; (2) new qualifications for community mental health centers (centers) as the Secretary is required to specify to ensure the health and safety of individuals being furnished mental health services and their effective and efficient furnishing; and (3) national coverage and administrative policies for partial hospitalization services under Medicare that the Secretary is to first adopt using negotiated rulemaking. 
Directs the Secretary to do the following: (1) provide for periodic recertification to ensure that the provision of such Medicare-reimbursable services by centers complies with applicable Medicare requirements; and (2) implement a specified demonstration project under Medicare part B (Supplementary Medical Insurance) under which centers may offer wrap around mental health services for purposes of providing for a full continuum of ambulatory behavioral health care services.  Provides for funding for demonstration project costs. 
Makes miscellaneous technical amendments concerning criteria for centers under the Public Health Service Act, and periodic physician review of physician written, individualized plans for partial hospitalization services under Medicare. 
Amends SSA title XI to provide for civil monetary penalties for false certification of eligibility for hospice care or partial hospitalization services.
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