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 ``Deficit Reduction Act of 2003''.

         TITLE I--REFORMED BUREAU OF RECLAMATION WATER PRICING

SECTION 101. SHORT TITLE.

    This Act may be cited as the ``Irrigation Subsidy Reduction Act of 
2001''.

SEC. 102. FINDINGS.

    Congress finds that--
            (1) the Federal reclamation program has been in existence 
        for over 90 years, with an estimated taxpayer investment of 
        over $70,000,000,000;
            (2) the program has had and continues to have an enormous 
        effect on the water resources and aquatic environments of the 
        western States;
            (3) irrigation water made available from Federal water 
        projects in the West is a very valuable resource for which 
        there are increasing and competing demands;
            (4) the justification for providing water at less than full 
        cost was to benefit and promote the development of small family 
        farms and exclude large corporate farms, but this purpose has 
        been frustrated over the years due to inadequate implementation 
        of subsidy and acreage limits;
            (5) below-cost water prices tend to encourage excessive use 
        of scarce water supplies in the arid regions of the West, and 
        reasonable price increases to the wealthiest western farmers 
        would provide an economic incentive for greater water 
        conservation;
            (6) the Federal Government has increasingly applied 
        eligibility tests based on income for Federal entitlement and 
        subsidy programs, measures that are consistent with the 
        historic approach of the reclamation program's acreage 
        limitations that seek to limit water subsidies to smaller 
        farms; and
            (7) including a means test based on gross income in the 
        reclamation program will increase the effectiveness of carrying 
        out the family farm goals of the Federal reclamation laws.

SEC. 103. AMENDMENTS.

    (a) Definitions.--Section 202 of the Reclamation Reform Act of 1982 
(43 U.S.C. 390bb) is amended--
            (1) by redesignating paragraphs (7), (8), (9), (10), and 
        (11) as paragraphs (9), (10), (11), (12), and (13), 
        respectively;
            (2) in paragraph (6), by striking ``owned or operated under 
        a lease which'' and inserting ``that is owned, leased, or 
        operated by an individual or legal entity and that'';
            (3) by inserting after paragraph (6) the following:
            ``(7) Legal entity.--The term `legal entity' includes a 
        corporation, association, partnership, trust, joint tenancy, or 
        tenancy in common, or any other entity that owns, leases, or 
        operates a farm operation for the benefit of more than 1 
        individual under any form of agreement or arrangement.
            ``(8) Operator.--
                    ``(A) In general.--The term `operator'--
                            ``(i) means an individual or legal entity 
                        that operates a single farm operation on a 
                        parcel (or parcels) of land that is owned or 
                        leased by another person (or persons) under any 
                        form of agreement or arrangement (or agreements 
                        or arrangements); and
                            ``(ii) if the individual or legal entity--
                                    ``(I) is an employee of an 
                                individual or legal entity, includes 
                                the individual or legal entity; or
                                    ``(II) is a legal entity that 
                                controls, is controlled by, or is under 
                                common control with another legal 
                                entity, includes each such other legal 
                                entity.
                    ``(B) Operation of a farm operation.--For the 
                purposes of subparagraph (A), an individual or legal 
                entity shall be considered to operate a farm operation 
                if the individual or legal entity is the person that 
                performs the greatest proportion of the decisionmaking 
                for and supervision of the agricultural enterprise on 
                land served with irrigation water.''; and
            (4) by adding at the end the following:
            ``(14) Single farm operation.--
                    ``(A) In general.--The term `single farm operation' 
                means the total acreage of land served with irrigation 
                water for which an individual or legal entity is the 
                operator.
                    ``(B) Rules for determining whether separate 
                parcels are operated as a single farm operation.--
                            ``(i) Equipment- and labor-sharing 
                        activities.--The conduct of equipment- and 
                        labor-sharing activities on separate parcels of 
                        land by separate individuals or legal entities 
                        shall not by itself serve as a basis for 
                        concluding that the farming operations of the 
                        individuals or legal entities constitute a 
                        single farm operation.
                            ``(ii) Performance of certain services.--
                        The performance by an individual or legal 
                        entity of an agricultural chemical application, 
                        pruning, or harvesting for a farm operation on 
                        a parcel of land shall not by itself serve as a 
                        basis for concluding that the farm operation on 
                        that parcel of land is part of a single farm 
                        operation operated by the individual or entity 
                        on other parcels of land.''.
    (b) Identification of Owners, Lessees, and Operators and of Single 
Farm Operations.--The Reclamation Reform Act of 1982 (43 U.S.C. 390aa 
et seq.) is amended by inserting after section 201 the following:

``SEC. 201A. IDENTIFICATION OF OWNERS, LESSEES, AND OPERATORS AND OF 
              SINGLE FARM OPERATIONS.

    ``(a) In General.--Subject to subsection (b), for each parcel of 
land to which irrigation water is delivered or proposed to be 
delivered, the Secretary shall identify a single individual or legal 
entity as the owner, lessee, or operator.
    ``(b) Shared Decisionmaking and Supervision.--If the Secretary 
determines that no single individual or legal entity is the owner, 
lessee, or other individual that performs the greatest proportion of 
decisionmaking for and supervision of the agricultural enterprise on a 
parcel of land--
            ``(1) all individuals and legal entities that own, lease, 
        or perform a proportion of decisonmaking and supervision that 
        is equal as among themselves but greater than the proportion 
        performed by any other individual or legal entity shall be 
        considered jointly to be the owner, lessee, or operator; and
            ``(2) all parcels of land of which any such individual or 
        legal entity is the owner, lessee, or operator shall be 
        considered to be part of the single farm operation of the 
        owner, lessee, or operator identified under subsection (1).''.
    (c) Pricing.--Section 205 of the Reclamation Reform Act of 1982 (43 
U.S.C. 390ee) is amended by adding at the end the following:
    ``(d) Single Farm Operations Generating More Than $500,000 in Gross 
Farm Income.--
            ``(1) In general.--Notwithstanding subsections (a), (b), 
        and (c), in the case of--
                    ``(A) a qualified recipient that reports gross farm 
                income from a single farm operation in excess of 
                $500,000 for a taxable year; or
                    ``(B) a limited recipient that received irrigation 
                water on or before October 1, 1981, and that reports 
                gross farm income from a single farm operation in 
                excess of $500,000 for a taxable year;
            irrigation water may be delivered to the single farm 
        operation of the qualified recipient or limited recipient at 
        less than full cost to a number of acres that does not exceed 
        the number of acres determined under paragraph (2).
            ``(2) Maximum number of acres to which irrigation water may 
        be delivered at less than full cost.--The number of acres 
        determined under this subparagraph is the number equal to the 
        number of acres of the single farm operation multiplied by a 
        fraction, the numerator of which is $500,000 and 
the denominator of which is the amount of gross farm income reported by 
the qualified recipient or limited recipient in the most recent taxable 
year.
            ``(3) Inflation adjustment.--
                    ``(A) In general.--The $500,000 amount under 
                paragraphs (1) and (2) for any taxable year beginning 
                in a calendar year after 2002 shall be equal to the 
                product of--
                            ``(i) $500,000, multiplied by
                            ``(ii) the inflation adjustment factor for 
                        the taxable year.
                    ``(B) Inflation adjustment factor.--The term 
                `inflation adjustment factor' means, with respect to 
                any calendar year, a fraction the numerator of which is 
                the GDP implicit price deflator for the preceding 
                calendar year and the denominator of which is the GDP 
                implicit price deflator for 2002. Not later than April 
                1 of any calendar year, the Secretary shall publish the 
                inflation adjustment factor for the preceding calendar 
                year.
                    ``(C) GDP implicit price deflator.--For purposes of 
                subparagraph (B), the term `GDP implicit price 
                deflator' means the first revision of the implicit 
                price deflator for the gross domestic product as 
                computed and published by the Secretary of Commerce.
                    ``(D) Rounding.--If any increase determined under 
                subparagraph (A) is not a multiple of $100, the 
                increase shall be rounded to the next lowest multiple 
                of $100.''.
    (d) Certification of Compliance.--Section 206 of the Reclamation 
Reform Act of 1982 (43 U.S.C. 390ff) is amended to read as follows:

``SEC. 206. CERTIFICATION OF COMPLIANCE.

    ``(a) In General.--As a condition to the receipt of irrigation 
water for land in a district that has a contract described in section 
203, each owner, lessee, or operator in the district shall furnish the 
district, in a form prescribed by the Secretary, a certificate that the 
owner, lessee, or operator is in compliance with this title, including 
a statement of the number of acres owned, leased, or operated, the 
terms of any lease or agreement pertaining to the operation of a farm 
operation, and, in the case of a lessee or operator, a certification 
that the rent or other fees paid reflect the reasonable value of the 
irrigation water to the productivity of the land.
    ``(b) Documentation.-- The Secretary may require a lessee or 
operator to submit for the Secretary's examination--
            ``(1) a complete copy of any lease or other agreement 
        executed by each of the parties to the lease or other 
        agreement; and
            ``(2) a copy of the return of income tax imposed by chapter 
        1 of the Internal Revenue Code of 1986 for any taxable year in 
        which the single farm operation of the lessee or operator 
        received irrigation water at less than full cost.''.
    (e) Trusts.--Section 214 of the Reclamation Reform Act of 1982 (43 
U.S.C. 390nn) is repealed.
    (f) Administrative Provisions.--
            (1) Penalties.--Section 224(c) of the Reclamation Reform 
        Act of 1982 (43 U.S.C. 390ww(c)) is amended--
                    (A) by striking ``(c) The Secretary'' and inserting 
                the following:
    ``(c) Regulations; Data Collection; Penalties.--
            ``(1) Regulations; data collection.--The Secretary''; and
                    (B) by adding at the end the following:
            ``(2) Penalties.--Notwithstanding any other provision of 
        law, the Secretary shall establish appropriate and effective 
        penalties for failure to comply with any provision of this Act 
        or any regulation issued under this Act.''.
            (2) Interest.--Section 224(i) of the Reclamation Reform Act 
        of 1982 (43 U.S.C. 390ww(i)) is amended by striking the last 
        sentence and inserting the following: ``The interest rate 
        applicable to underpayments shall be equal to the rate 
        applicable to expenditures under section 202(3)(C).''.
    (g) Reporting.--Section 228 of the Reclamation Reform Act of 1982 
(43 U.S.C. 390zz) is amended by inserting ``operator or'' before 
``contracting entity'' each place it appears.
    (h) Memorandum of Understanding.--The Reclamation Reform Act of 
1982 (43 U.S.C. 390aa et seq.) is amended--
            (1) by redesignating sections 229 and 230 as sections 230 
        and 231; and
            (2) by inserting after section 228 the following:

``SEC. 229. MEMORANDUM OF UNDERSTANDING.

    ``The Secretary, the Secretary of the Treasury, and the Secretary 
of Agriculture shall enter into a memorandum of understanding or other 
appropriate instrument to permit the Secretary, notwithstanding section 
6103 of the Internal Revenue Code of 1986, to have access to and use of 
available information collected or maintained by the Department of the 
Treasury and the Department of Agriculture that would aid enforcement 
of the ownership and pricing limitations of Federal reclamation law.''.

   TITLE II--TERMINATION OF THE UNIFORMED SERVICES UNIVERSITY OF THE 
                            HEALTH SCIENCES

SECTION 201. TERMINATION.

    (a) In General.--The Uniformed Services University of the Health 
Sciences is terminated.
    (b) Conforming Amendments.--
            (1) Chapter 104 of title 10, United States Code, is 
        repealed.
            (2) The table of chapters at the beginning of subtitle A of 
        such title, and at the beginning of part III of such subtitle, 
        are each amended by striking out the item relating to chapter 
        104.
    (c) Effective Dates.--
            (1) Termination.--The termination of the Uniformed Services 
        University of the Health Sciences under subsection (a)(1) shall 
        take effect on the day after the date of the graduation from 
        the university of the last class of students that enrolled in 
        such university on or before the date of the enactment of this 
        Act.
            (2) Amendments.--The amendments made by subsection (a)(2) 
        shall take effect on the date of the enactment of this Act, 
        except that the provisions of chapter 104 of title 10, United 
        States Code, as in effect on the day before such date, shall 
        continue to apply with respect to the Uniformed Services 
        University of the Health Sciences until the termination of the 
        university under this section.

 TITLE III--TERMINATION OF PRODUCTION UNDER THE D5 SUBMARINE-LAUNCHED 
                            MISSILE PROGRAM

SECTION 301. PRODUCTION TERMINATION.

    (a) Termination of Program.--The Secretary of Defense shall 
terminate production of D5 submarine-launched ballistic missiles under 
the D5 submarine-launched ballistic missile program.
    (b) Payment of Termination Costs.--Funds available on or after the 
date of the enactment of this Act for obligation for the D5 submarine-
launched ballistic missile program may be obligated for production 
under that program only for payment of the costs associated with the 
termination of production under this Act.

SEC. 302. CURRENT PROGRAM ACTIVITIES.

    Nothing in this legislation shall be construed to prohibit or 
otherwise affect the availability of funds for the following:
            (1) Production of D5 submarine-launched ballistic missiles 
        in production on the date of the enactment of this Act.
            (2) Maintenance after the date of the enactment of this Act 
        of the arsenal of D5 submarine-launched ballistic missiles in 
        existence on such date, including the missiles described in 
        paragraph (1).
[A]: Deficit Reduction Act of 2003 - Irrigation Subsidy Reduction Act of 2001 (sic) - Amends the Reclamation Reform Act of 1982 to direct the Secretary of the Interior, for each parcel of land to which irrigation water is delivered or proposed to be delivered, to identify a single individual or legal entity as the owner, lessee, or operator.Allows irrigation water to be delivered at less than the normal per-acre cost to either: (1) a qualified recipient that reports gross farm income from a single farm operation in excess of $500,000 per taxable year; or (2) a limited recipient that received such water on or before October 1, 1981, and that reports gross farm income in excess of such amount.Requires lessees (currently, only owners and operators) of an irrigation district to furnish such district a certification of compliance with the Act. Allows the Secretary to require a lessee or operator to submit for examination a copy of a tax return for any taxable year in which the single farm operation of the lessee or operator received irrigation water at less than full cost.Repeals a provision exempting from Federal reclamation ownership and cost pricing limitations district lands held in trust for a beneficiary or beneficiaries whose interests in the lands served do not exceed such limitations.Directs the Secretaries of the Interior, the Treasury, and Agriculture to enter into a memorandum of understanding to permit the Secretary of the Interior to have access to and use available information collected or maintained by either the Department of the Treasury or Agriculture that would aid in enforcement of the ownership and pricing limitations of Federal reclamation law.Terminates the Uniformed Services University of Health Science.Requires the Secretary of Defense to terminate production of D5 submarine-launched ballistic missiles under the D5 submarine-launched ballistic missile program.


[Q]: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Neutral Cost Recovery Act of 2001''.

SEC. 2. NEUTRAL COST RECOVERY DEPRECIATION ADJUSTMENT FOR CERTAIN 
              PROPERTY PLACED IN SERVICE AFTER DECEMBER 31, 2001.

    (a) In General.--Section 168 of the Internal Revenue Code of 1986 
(relating to accelerated cost recovery system) is amended by adding at 
the end thereof the following new subsection:
    ``(k) Deduction Adjustment To Allow Equivalent of Expensing for 
Certain Property Placed in Service After December 31, 2001.--
            ``(1) In general.--In the case of tangible property placed 
        in service after December 31, 2001, the deduction under this 
        section with respect to such property--
                    ``(A) shall be determined by substituting `150 
                percent' for `200 percent' in subsection (b)(1) in the 
                case of property to which the 200 percent declining 
                balance method would otherwise apply, and
                    ``(B) for any taxable year after the taxable year 
                during which the property is placed in service shall 
                be--
                            ``(i) the amount determined under this 
                        section for such taxable year without regard to 
                        this subparagraph, multiplied by
                            ``(ii) the applicable neutral cost recovery 
                        ratio for such taxable year.
            ``(2) Applicable neutral cost recovery ratio.--For purposes 
        of paragraph (1)--
                    ``(A) In general.--The applicable neutral cost 
                recovery ratio for the property for any taxable year is 
                the number determined by--
                            ``(i) dividing--
                                    ``(I) the gross domestic product 
                                deflator for the calendar quarter 
                                ending in such taxable year which 
                                corresponds to the calendar quarter 
                                during which the property was placed in 
                                service by the taxpayer, by
                                    ``(II) the gross domestic product 
                                deflator for the calendar quarter 
                                during which the property was placed in 
                                service by the taxpayer, and
                            ``(ii) then multiplying the number 
                        determined under clause (i) by the number equal 
                        to 1.035 to the nth power where `n' is the 
                        number of full years in the period beginning on 
                        the 1st day of the calendar quarter during 
                        which the property was placed in service by the 
                        taxpayer and ending on the day before the 
                        beginning of the corresponding calendar quarter 
                        ending during such taxable year.
                The applicable neutral cost recovery ratio shall never 
                be less than 1. The applicable neutral cost recovery 
                ratio shall be rounded to the nearest \1/1000\.
                    ``(B) Special rule for certain property.--In the 
                case of property described in paragraph (2) or (3) of 
                subsection (b) or in subsection (g), the applicable 
                neutral cost recovery ratio shall be determined without 
                regard to subparagraph (A)(ii).
            ``(3) Gross domestic product deflator.--For purposes of 
        paragraph (2), the gross domestic product deflator for any 
        calendar quarter is the implicit price deflator for the gross 
        domestic product for such quarter (as shown in the first 
        revision thereof).
            ``(4) Election not to have subsection apply.--This 
        subsection shall not apply to any property if the taxpayer 
        elects not to have this subsection apply to such property. Such 
        an election, once made, shall be irrevocable.
            ``(5) Churning transactions.--This subsection shall not 
        apply to any property if this section would not apply to such 
        property were subsection (f)(5)(A)(ii) applied by substituting 
        `2002' for `1981' and `2001' for `1980'.
            ``(6) Additional deduction not to affect basis or 
        recapture.--
                    ``(A) In general.--The additional amount determined 
                under this section by reason of this subsection shall 
                not be taken into account in determining the adjusted 
                basis of any property or of any interest in a pass-thru 
                entity which holds such property and shall not be 
                treated as a deduction for depreciation for purposes of 
                sections 1245 and 1250.
                    ``(B) Pass-thru entity defined.--For purposes of 
                subparagraph (A), the term `pass-thru entity' means--
                            ``(i) a regulated investment company,
                            ``(ii) a real estate investment trust,
                            ``(iii) an S corporation,
                            ``(iv) a partnership,
                            ``(v) an estate or trust, and
                            ``(vi) a common trust fund.''
    (b) Minimum Tax Treatment.--
            (1) Paragraph (1) of section 56(a) of such Code is amended 
        by adding at the end thereof the following new subparagraph:
                    ``(E) Use of neutral cost recovery ratio.--In the 
                case of property to which section 168(k) applies and 
                which is placed in service after December 31, 2001, the 
                deduction allowable under this paragraph with respect 
                to such property for any taxable year (after the 
                taxable year during which the property is placed in 
                service) shall be--
                            ``(i) the amount so allowable for such 
                        taxable year without regard to this 
                        subparagraph, multiplied by
                            ``(ii) the applicable neutral cost recovery 
                        ratio for such taxable year (as determined 
                        under section 168(k)).
                This subparagraph shall not apply to any property with 
                respect to which there is an election in effect not to 
                have section 168(k)) apply.''
            (2) Subparagraph (C) of section 56(g)(4) of such Code is 
        amended by adding at the end the following new clause:
                            ``(v) Neutral cost recovery deduction.--
                        Clause (i) shall not apply to the additional 
                        deduction allowable by reason of section 
                        168(k).''
    (c) Coordination With Depreciation Limitation on Certain 
Automobiles.--Clause (i) of section 280F(a)(1)(B) of such Code is 
amended by adding at the end the following new sentence: ``For purposes 
of this clause, the unrecovered basis of any passenger automobile shall 
be treated as including the additional amount determined under section 
168 by reason of subsection (k) thereof to the extent not allowed as a 
deduction by reason of this paragraph for any taxable year in the 
recovery period.''
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after December 31, 2001.
[A]: Amends the Internal Revenue Code to require that the depreciation deduction for tangible property placed in service after 2001 be computed using neutral cost recovery ratios.


[Q]: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Twenty-First Century Distance 
Learning Enhancement Act''.

SEC. 2. EDUCATIONAL USE COPYRIGHT EXEMPTION.

    (a) Exemption of Certain Performances and Displays for Educational 
Uses.--Section 110 of title 17, United States Code, is amended--
            (1) by striking paragraph (2) and inserting the following:
            ``(2) except with respect to a work produced or marketed 
        primarily for performance or display as part of mediated 
        instructional activities transmitted via digital networks, or a 
        performance or display that is given by means of a copy or 
        phonorecord that is not lawfully made and acquired under this 
        title, and the transmitting government body, accredited 
        nonprofit educational institution, or nonprofit library knew or 
        had reason to believe was not lawfully made and acquired, the 
        performance of a nondramatic literary or musical work or 
        reasonable and limited portions of any other work, or display 
        of a work in an amount comparable to that which is typically 
        displayed in the course of a live classroom session, by or in 
        the course of a transmission, if--
                    ``(A) the performance or display is made by, at the 
                direction of, or under the actual supervision of an 
                instructor as an integral part of a class session 
                offered as a regular part of the systematic mediated 
                instructional activities of a governmental body, an 
                accredited nonprofit educational institution, or a 
                nonprofit library;
                    ``(B) the performance or display is directly 
                related and of material assistance to the teaching 
                content of the transmission;
                    ``(C) the transmission is made solely for, and, to 
                the extent technologically feasible, the reception of 
                such transmission is limited to--
                            ``(i) students officially enrolled in the 
                        course for which the transmission is made; or
                            ``(ii) officers or employees of 
                        governmental bodies as a part of their official 
                        duties or employment; and
                    ``(D) the transmitting body or institution--
                            ``(i) institutes policies regarding 
                        copyright, provides informational materials to 
                        faculty, students, and relevant staff members 
                        that accurately describe, and promote 
                        compliance with, the laws of the United States 
                        relating to copyright, and provides notice to 
                        students that materials used in connection with 
                        the course may be subject to copyright 
                        protection; and
                            ``(ii) in the case of digital 
                        transmissions--
                                    ``(I) applies technological 
                                measures that, in the ordinary course 
                                of their operations, prevent--
                                            ``(aa) retention of the 
                                        work in accessible form by 
                                        recipients of the transmission 
                                        from the transmitting body or 
                                        institution for longer than the 
                                        class session; and
                                            ``(bb) unauthorized further 
                                        dissemination of the work in 
                                        accessible form by such 
                                        recipients to others; and
                                    ``(II) does not engage in conduct 
                                that could reasonably be expected to 
                                interfere with technological measures 
                                used by copyright owners to prevent 
                                such retention or unauthorized further 
                                dissemination;''; and
            (2) by adding at the end the following:
            ``In paragraph (2), the term `mediated instructional 
        activities' with respect to the performance or display of a 
        work by digital transmission under this section refers to 
        activities that use such work as an integral part of the class 
        experience, controlled by or under the actual supervision of 
        the instructor and analogous to the type of performance or 
        display that would take place in a live classroom setting. The 
        term does not refer to activities that use, in 1 or more class 
        sessions of a single course, such works as textbooks, course 
        packs, or other material in any media, copies or phonorecords 
        of which are typically purchased or acquired by the students in 
        higher education for their independent use and retention or are 
        typically purchased or acquired for elementary and secondary 
        students for their possession and independent use.
            ``For purposes of paragraph (2), accreditation--
                    ``(A) with respect to an institution providing 
                post-secondary education, shall be as determined by a 
                regional or national accrediting agency recognized by 
                the Council on Higher Education Accreditation or the 
                United States Department of Education; and
                    ``(B) with respect to an institution providing 
                elementary or secondary education, shall be as 
                recognized by the applicable state certification or 
                licensing procedures.
            ``For purposes of paragraph (2), no governmental body, 
        accredited nonprofit educational institution, or nonprofit 
        library shall be liable for infringement by reason of the 
        transient or temporary storage of material carried out through 
        the automatic technical process of a digital transmission of 
        the performance or display of that material as authorized under 
        paragraph (2). No such material stored on the system or network 
        controlled or operated by the transmitting body or institution 
        under this paragraph shall be maintained on such system or 
        network in a manner ordinarily accessible to anyone other than 
        anticipated recipients. No such copy shall be maintained on the 
        system or network in a manner ordinarily accessible to such 
        anticipated recipients for a longer period than is reasonably 
        necessary to facilitate the transmissions for which it was 
        made.''.
    (b) Ephemeral Recordings.--
            (1) In general.--Section 112 of title 17, United States 
        Code, is amended--
                    (A) by redesignating subsection (f) as subsection 
                (g); and
                    (B) by inserting after subsection (e) the 
                following:
    ``(f)(1) Notwithstanding the provisions of section 106, and without 
limiting the application of subsection (b), it is not an infringement 
of copyright for a governmental body, nonprofit educational 
institution, or nonprofit library entitled under section 110(2) to 
transmit a performance or display to make copies or phonorecords of a 
work that is in digital form and, solely to the extent permitted in 
paragraph (2), of a work that is in analog form, embodying the 
performance or display to be used for making transmissions authorized 
under section 110(2), if--
            ``(A) such copies or phonorecords are retained and used 
        solely by the body or institution that made them, and no 
        further copies or phonorecords are reproduced from them, except 
        as authorized under section 110(2); and
            ``(B) such copies or phonorecords are used solely for 
        transmissions authorized under section 110(2).
    ``(2) This subsection does not authorize the conversion of print or 
other analog versions of works into digital formats, except that such 
conversion is permitted hereunder, only with respect to the amount of 
such works authorized to be performed or displayed under section 
110(2), if--
            ``(A) no digital version of the work is available to the 
        institution; or
            ``(B) the digital version of the work that is available to 
        the institution is subject to technological protection measures 
        that prevent its use for section 110(2).''.
            (2) Technical and conforming amendment.--Section 802(c) of 
        title 17, United States Code, is amended in the third sentence 
        by striking ``section 112(f)'' and inserting ``section 
        112(g)''.
[A]:
Twenty-First Century Distance Learning Enhancement Act - Revises Federal copyright law to extend the exemption from infringement liability for instructional broadcasting to: (1) digital distance learning or distance education; and (2) nonprofit libraries (as well as governmental bodies and accredited nonprofit educational institutions, as at present). Excludes from such exemption (thus subjecting to infringement liability) any work produced or marketed primarily for performance or display as part of mediated instructional activities transmitted via digital networks, or a performance or display given by means of a copy or phonorecord that is not lawfully made and acquired, and the transmitting government body, accredited nonprofit educational institution, or nonprofit library knew or had reason to believe was not lawfully made and acquired. Allows under specified instructional conditions the performance and display of reasonable and limited portions of any copyrighted work in an amount comparable to that which is typically displayed in the course of a live classroom session, by or in the course of a transmission.Exempts from infringement liability, under specified conditions, governmental bodies, accredited nonprofit educational institutions, and nonprofit libraries by reason of the transient or temporary storage of material carried out through the automatic technical process of a digital transmission of the performance or display of that material.Extends the current ephemeral recording exemption, under specified conditions, to copies or phonorecords embodying a performance or display in digital and analog form for use in making transmissions authorized by this Act.