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

Input: Consider Input: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Drug Use Prevention Act of 1997''.

SEC. 2. DEFINITION OF ``RECOMMEND''.

    Section 102 of the Controlled Substances Act (21 U.S.C. 802) is 
amended by adding at the end the following:
            ``(47) A practitioner will be deemed to have `recommended' 
        the use of marihuana if the practitioner offered advice, or 
        responded to a request for advice, suggesting the use of 
        marihuana while acting in the course of his or her professional 
        capacity.''.

SEC. 3. DENIAL OR REVOCATION OF REGISTRATION.

    (a) Denial of Registration.--Section 303(f) of the Controlled 
Substances Act (21 U.S.C. 823(f)) is amended--
            (1) by redesignating paragraphs (1) through (5) as 
        subclauses (I) through (V), respectively, and indenting 
        accordingly;
            (2) by striking ``(f) The Attorney General'' and inserting 
        the following:
    ``(f) Registration of Practitioners to Dispense or Conduct Research 
With Controlled Substances.--
            ``(1) In general.--Subject to paragraph (2), the Attorney 
        General'';
            (3) in the second sentence, by striking ``The Attorney'' 
        and inserting the following:
            ``(2) Denial of registration.--
                    ``(A) Discretionary denial of application.--
                            ``(i) In general.--The Attorney'';
            (4) in the third sentence, by striking ``In determining the 
        public interest'' and inserting the following:
                            ``(ii) Determination of public interest.--
                        In determining the public interest for purposes 
                        of clause (i)'';
            (5) in the undesignated paragraph following subclause (V), 
        as redesignated by paragraph (1) of this subsection, by 
        striking ``Separate registration'' and inserting the following:
            ``(3) Registration for research purposes.--Separate 
        registration''; and
            (6) by adding at the end of paragraph (2), as so designated 
        by paragraph (3) of this subsection, the following:
                    ``(B) Mandatory denial of application.--The 
                Attorney General shall deny an application for 
                registration under this subsection upon a finding by 
                the Attorney General that the applicant practitioner--
                            ``(i) administered, dispensed, or 
                        recommended the use of marihuana to an 
                        individual in violation of Federal or State 
                        law; or
                            ``(ii) has been excluded (or directed to be 
                        excluded) from participation in a program 
                        pursuant to section 1128(a)(5) of the Social 
                        Security Act (42 U.S.C. 1320a-7(a)(5)).''.
    (b) Revocation of Registration.--Section 304(a) of the Controlled 
Substances Act (21 U.S.C. 824(a)) is amended--
            (1) in subsection (a)--
                    (A) by redesignating paragraphs (1) through (5) as 
                subparagraphs (A) through (E), respectively, and 
                indenting accordingly;
                    (B) by striking ``(a) A registration'' and 
                inserting ``(a)(1) Subject to paragraph (3), a 
                registration''; and
                    (C) in the undesignated paragraph following 
                subparagraph (E), as redesignated, by striking ``A 
                registration'' and inserting the following:
            ``(2) Revocation of registration to dispense a narcotic 
        drug.--A registration'';
                and
            (2) by adding at the end the following:
            ``(3) Mandatory revocation of registration.--The Attorney 
        General shall revoke a registration described in paragraph (1) 
        upon a finding by the Attorney General that the registrant--
                    ``(A) administered, dispensed, or recommended the 
                use of marihuana to an individual in violation of 
                Federal or State law; or
                    ``(B) has been excluded (or directed to be 
                excluded) from participation in a program pursuant to 
                section 1128(a)(5) of the Social Security Act (42 
                U.S.C. 1320a-7(a)(5)).''.

SEC. 4. PROHIBITED ACTS RELATING TO MARIHUANA.

    Section 403(a) of the Controlled Substances Act (21 U.S.C. 843(a)) 
is amended--
            (1) in paragraph (3), by inserting before the semicolon ``, 
        including acquiring or obtaining possession of marihuana by 
        means of claiming a medical need, with the intent of selling or 
        distributing the marihuana'';
            (2) in paragraph (8), by striking ``or'' at the end;
            (3) in paragraph (9), by striking the period at the end and 
        inserting ``; or''; and
            (4) by adding at the end the following:
            ``(10) if that person is a practitioner, to prescribe, 
        dispense, or recommend the use of marihuana.''.

SEC. 5. ENHANCED PENALTIES RELATING TO MARIHUANA.

    Section 403 of the Controlled Substances Act (21 U.S.C. 843) is 
amended by adding at the end the following:
    ``(g) In addition to any other applicable penalty, any practitioner 
who violates this section by prescribing, dispensing, or recommending 
the use of marihuana to a person under 21 years of age shall be 
sentenced to a term of imprisonment of not more than 8 years, a fine of 
not more than $60,000, or both.''.

SEC. 6. EXCLUSION OF CERTAIN INDIVIDUALS AND ENTITIES FROM 
              PARTICIPATION IN MEDICARE AND STATE HEALTH CARE PROGRAMS 
              FOR ILLEGALLY DISPENSING MARIHUANA.

    Section 1128(a) of the Social Security Act (42 U.S.C. 1320a-7(a)) 
is amended by adding at the end the following:
            ``(5)(A) Any person (including an organization, agency, or 
        other entity, but excluding a beneficiary, as defined in 
        subsection 1128A(i)(5)) that administers, dispenses, or 
        recommends the use of marihuana to an individual in violation 
        of a Federal or State law.
            ``(B) In this paragraph, the terms `administer', 
        `dispense', `recommend', and `marihuana' have the same meanings 
        as in section 102 of the Controlled Substances Act (21 U.S.C. 
        802)).''.

Output: Drug Use Prevention Act of 1997 - Amends:  (1) the Social Security Act to exclude individuals and entities from participation in Medicare and State health care programs (participation) for administering, dispensing, or recommending the use of marihuana to an individual in violation of Federal or State law; and (2) the Controlled Substances Act (CSA) to direct the Attorney General to deny an application for registration, or revoke a registration, of a practitioner to dispense, or conduct research with, controlled substances upon a finding by the Attorney General that the applicant practitioner administered, dispensed, or recommended the use of marihuana to an individual in violation of Federal or State law or that the applicant practitioner has been excluded (or directed to be excluded) from participation for illegally dispensing marihuana. 
Deems a practitioner to have "recommended" the use of marihuana if he or she offered advice, or responded to a request for advice, suggesting the use of marihuana while acting in the course of his or her professional capacity. 
Amends the CSA to prohibit:  (1) an individual from acquiring or obtaining possession of marihuana by means of claiming a medical need, with the intent of selling or distributing the marihuana; and (2) a practitioner from prescribing, dispensing, or recommending the use of marihuana. 
Directs that, in addition to any other applicable penalty, any practitioner who violates the CSA by prescribing, dispensing, or recommending the use of marihuana to a person under age 21 be sentenced to up to eight years' imprisonment, fined up to $60,000, or both.


Input: Consider Input: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Sacramento Valley Water Storage and 
Restoration Act of 2014''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) The State of California and much of the West are 
        experiencing one of the driest years on record, exacerbating 
        water supply problems caused by a lack of surface water storage 
        infrastructure. The drought conditions have caused reductions 
        in water supplies to almost all water users in the State.
            (2) The Sites Project has been identified by the State of 
        California and the Federal Government as an important component 
        to integrated water management in the Sacramento Valley that 
        would advance the co-equal objectives of improving water 
        management and restoring ecological health for beneficial uses 
        of the Sacramento-San Joaquin Delta and the Sacramento River 
        watershed.
            (3) Among other things, the Sites Project would--
                    (A) increase surface water storage to enhance water 
                management flexibility in the Sacramento Valley;
                    (B) provide flood control benefits;
                    (C) improve conditions for fish, waterfowl, and 
                wildlife in the Sacramento Valley, including anadromous 
                fish in the Sacramento River; and
                    (D) improve the operation of the State's water 
                system to provide improvements in ecosystem and water 
                quality conditions in the Bay-Delta while providing a 
                more reliable water supply for the State of California.
            (4) The Sites Project has been shown to provide 
        approximately 1,300,000 of additional yield when the Sites 
        Project is integrated into the operations of other State and 
        Federal reservoirs upstream of the Bay-Delta.
            (5) Healthy wetlands are of vital importance to wildlife in 
        California and require a reliable supply of water, and 
        additional surface water storage can help meet water supply 
        goals under the Central Valley Project Improvement Act.
            (6) It is in the interests of the United States for the 
        Federal Government to work with the Sites Project Authority, 
        which has been established under laws of the State of 
        California as an independent joint powers authority to, among 
        other things, study, promote, develop, design, finance, 
        acquire, construct, manage, and operate Sites Reservoir and 
        related facilities, in order to advance the Sites Project in 
        the most expeditious and cost-effective manner possible.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (2) Commissioner.--The term ``Commissioner'' means the 
        Commissioner of the Bureau of Reclamation.
            (3) Bureau.--The term ``Bureau'' means the Bureau of 
        Reclamation.
            (4) Authority.--The term ``Authority'' means the Sites 
        Project Authority that entered into a Joint Powers Agreement on 
        August 26, 2010, for the purpose of advancing the Sites Project 
        as a non-Federal facility and includes Glenn-Colusa Irrigation 
        District, Reclamation District 108, the Tehama-Colusa Canal 
        Authority, Maxwell Irrigation District, the County of Glenn, 
        the County of Colusa and Yolo County Flood Control and Water 
        Conservation District.
            (5) Sites project.--The term ``Sites Project'' means the 
        Sites Reservoir in Glenn and Colusa Counties, California, and 
        related facilities, including associated water conveyance and 
        hydropower generation and transmission facilities.
            (6) State.--The term ``State'' means the State of 
        California.
            (7) Central valley project.--The term ``Central Valley 
        Project'' means all Federal reclamation projects located within 
        or diverting water from or to the watershed of the Sacramento 
        and San Joaquin rivers and their tributaries as authorized by 
        the Act of August 26, 1937 (50 Stat. 850), and all Acts 
        amendatory or supplemental thereto, including but not limited 
        to the Act of October 17, 1940 (54 Stat. 1198, 1199), Act of 
        December 22, 1944 (58 Stat. 887), Act of October 14, 1949 (63 
        Stat. 852), Act of September 26, 1950 (64 Stat. 1036), Act of 
        August 27, 1954 (68 Stat. 879), Act of August 12, 1955 (69 
        Stat. 719), Act of June 3, 1960 (74 Stat. 156), Act of October 
        23, 1962 (76 Stat. 1173), Act of September 2, 1965 (79 Stat. 
        615), Act of August 19, 1967 (81 Stat. 167), Act of August 27, 
        1967 (81 Stat. 173), Act of October 23, 1970 (84 Stat. 1097), 
        Act of September 28, 1976 (90 Stat. 1324) and Act of October 
        27, 1986 (100 Stat. 3050).
            (8) Repayment and water service contracts.--The terms 
        ``repayment contract'' and ``water service contract'' have the 
        same meaning as provided in sections 9(d) and 9(e) of the 
        Reclamation Project Act of 1939 (53 Stat. 1187, 1195), as 
        amended.

SEC. 4. FEASIBILITY STUDY AND ENVIRONMENTAL IMPACT STATEMENT.

    (a) Feasibility Study.--No later than June 30, 2015, the Secretary, 
acting through the Bureau, shall finalize and publish in the Federal 
Register, the feasibility study authorized in section 103(d)(1)(i)(II) 
of title I of Public Law 108-361.
    (b) Environmental Impact Statement and Environmental Impact 
Report.--No later than June 30, 2015, the Secretary shall work with the 
Secretary of Commerce, the Army Corps of Engineers and the 
Environmental Protection Agency Administrator to coordinate the efforts 
of the relevant agencies and work with the State, the Authority, and 
other stakeholders to complete and issue the final joint environmental 
impact statement and environmental impact report on the Sites Project.
    (c) Availability of Documents.--The Secretary shall ensure that all 
documents associated with the preparation of planning and feasibility 
studies and applicable environmental reviews under the National 
Environmental Policy Act for the Sites Project shall be made available 
to the Authority.
    (d) Financial Assistance and Other Agreements.--To assist the 
Secretary in meeting the deadlines for completing the feasibility study 
and environmental impact statement identified in this section, no later 
than 90 days following enactment, the Secretary, acting through the 
Bureau, shall enter into such agreements with the Authority, including 
financial assistance agreements, to carry out such work as the Bureau 
and the Authority mutually agree is appropriate to ensure that all 
studies and environmental reviews are completed on an expeditious basis 
and that the shortest applicable process under the National 
Environmental Policy Act shall be utilized, including in the completion 
of the final feasibility study and final joint environmental impact 
statement and environmental impact report on the Sites Project.
    (e) Non-Federal Cost-Share.--The Secretary shall attribute all 
funds expended, or in-kind services provided, by the Authority or the 
State to advance the Sites Project, including the $42,379,999 in non-
Federal funds provided to the North-of-Delta Offstream Storage 
Feasibility Study reflected in the Bureau's fiscal year 2015 Budget 
Justification, to the non-Federal share of cost-share requirements for 
any Federal support provided to the Sites Project.
    (f) Requirements of Existing Law.--Nothing in the section herein 
modifies existing requirements of Federal law.

SEC. 5. CONSTRUCTION.

    (a) Authorization of Construction.--Section 103(d)(1)(B) of title I 
of Public Law 108-361 (the Calfed Bay-Delta Authorization Act, 118 
Stat. 1681) is amended by--
            (1) adding after clause (i) the following:
                            ``(ii) Construction authorization.--If the 
                        Secretary determines the project described in 
                        clause (ii)(I) of subparagraph (A) is feasible, 
                        the Secretary is authorized to carry out the 
                        project in a manner that is substantially in 
                        accordance with the recommended plan, and 
                        subject to the conditions described in the 
                        feasibility study.'';
            (2) striking in clause (iii), ``the project'' and inserting 
        ``a project described in clause (ii)(I) of subparagraph (A)''; 
        and
            (3) redesignating clause (ii) and (iii) as clause (iii) and 
        (iv), respectively.
    (b) Project Partnership Agreements.--At the request of the 
Authority, the Bureau shall--
            (1) enter into a project partnership agreement with the 
        Authority for the Authority to provide full project management 
        control for construction of the Sites Project, or a separable 
        element of the project, in accordance with plans approved by 
        the Secretary; and
            (2) following execution of the project partnership 
        agreement, transfer to the Authority interest to carry out 
        construction of the project, or a separable element of the 
        project--
                    (A) if applicable, the balance of the unobligated 
                amounts appropriated for the Sites Project, except that 
                the Secretary shall retain sufficient amounts for the 
                Bureau to carry out any responsibilities of the Bureau 
                relating to the project; and
                    (B) additional amounts, as determined by the 
                Secretary, from amounts made available to the 
                Secretary, except that the total amount transferred to 
                the non-Federal interest shall not exceed the updated 
                estimate of the Federal share of the cost of 
                construction, including any required design.
    (c) Detailed Project Schedule.--Not later than 180 days after 
entering into a Project Partnership agreement, the Authority, to the 
maximum extent practicable, shall submit to the Secretary a detailed 
project schedule, based on estimated funding levels, that lists all 
deadlines for each milestone in the construction of the project.
    (d) Administration.--All laws and regulations that would apply to 
the Secretary if the Secretary were carrying out the project shall 
apply to Authority, if the Authority enters into an agreement with the 
Secretary to carry out the project under this section.

SEC. 6. NON-FEDERAL PROJECT.

    (a) In General.--At any time, notwithstanding any other provision 
of this Act, if the Commissioner determines and the Secretary concurs, 
that the Sites Project can be expedited by the Authority as a non-
Federal project, and that there is a demonstrable Federal interest for 
the Sites Project to be constructed and operated as a non-Federal 
project, the Bureau is authorized and directed to take any and all 
actions possible to advance the Sites Project as a non-Federal project, 
including, but not limited to, entering into cost-shared financial 
assistance agreements with the Authority to support construction of the 
Sites Project as a non-Federal project.
    (b) Title; Operations and Maintenance.--The Authority shall hold 
title to all facilities constructed under this section, and shall be 
solely responsible for the operation and maintenance costs of such 
facilities.
    (c) Federal Reviews and Permits.--The Bureau shall be the lead 
Federal agency for the purposes of all Federal reviews, analyses, 
opinions, statements, permits, licenses, or other approvals or 
decisions required under Federal law to allow the Authority to 
construct the Sites Project as a non-Federal project.
    (d) Coordinated Operations.--The Secretary of the Interior is 
authorized and directed to execute and implement a long-term agreement 
between the United States of America and the Authority that shall 
provide for the coordination of operations of the Central Valley 
Project and the Sites Project to--
            (1) satisfy any contracts entered into in subsection (e) of 
        this Act;
            (2) help meet any unmet needs for Sacramento Valley in-
        basin water uses;
            (3) help meet any unmet needs of existing Central Valley 
        Project repayment and water service contracts; and
            (4) ensure that any surplus water supplies from the Sites 
        Project are put to full and beneficial use.
    (e) Contracts.--The Secretary is authorized to enter into long-term 
contracts with the Authority to acquire water supplies made available 
from the Sites Project for the purposes of meeting the requirements 
section 3406(b)(3) and section 3408(j) of Public Law 102-575, the 
Central Valley Project Improvement Act, and such other purposes as the 
Secretary may deem appropriate.

SEC. 7. ENVIRONMENTAL REVIEW AND PERMITTING.

    With respect to the Sites Project, the Bureau shall--
            (1) be the lead Federal agency for the purposes of all 
        Federal reviews, analyses, opinions, statements, permits, 
        licenses, or other approvals or decisions required under 
        Federal law to allow either the Bureau or the Authority to 
        construct the Sites Project, including all requirements under--
                    (A) the National Environmental Policy Act of 1969 
                (42 U.S.C. 4321 et seq.);
                    (B) the Endangered Species Act of 1973 (16 U.S.C. 
                1531 et seq.); and
                    (C) any other Federal law applicable to the 
                construction of the Sites Project facilities by the 
                Bureau or the Authority; and
            (2) take such steps as are necessary to ensure that all 
        Federal reviews, analyses, opinions, statements, permits, 
        licenses, or other approvals or decisions required under 
        Federal law to allow either the Bureau or the Authority to 
        construct the Sites Project are completed on an expeditious 
        basis and utilize the shortest applicable process.

SEC. 8. POWER GENERATION.

    (a) Purchase or Market Power.--The Secretary of Energy, acting 
through the Western Area Power Administration, shall determine no later 
than June 30, 2015, if there is a Federal interest in--
            (1) providing power to the Sites Project; and
            (2) purchasing and marketing the power produced by the 
        Sites Project.
    (b) Authorization To Provide, Market and Purchase Power.--If the 
Secretary of Energy determines there is a Federal interest in providing 
power to, and purchasing and marketing power from, the Sites Project, 
the Secretary of Energy is authorized and directed to take such actions 
as are necessary to support that determination.
    (c) Permit Lead and Marketing of Power if Western Area Power 
Administration Forgoes Participation in the Sites Project.--If the 
Sites Project is constructed as a non-Federal project by the Authority 
and the Secretary of Energy determines that there is no Federal 
interest in the Western Area Power Administration managing power 
provided to or emanating from the Sites Project, the Secretary of the 
Interior, acting through the Bureau, is authorized and directed to 
provide such support as is necessary to enable the Authority market the 
energy produced by the Sites Project, including securing all permits 
associated with managing power used and produced by the Sites Project.
    (d) Delivery and Management of Water.--Nothing in this subsection 
shall alter or impede the delivery and management of water, as water 
used for hydropower generation shall be deemed incidental to uses of 
water for which the Sites Project is intended to serve.

SEC. 9. COMPLIANCE WITH ENVIRONMENTAL LAWS.

    Nothing in this Act modifies or alters any obligations under--
            (1) the National Environmental Policy Act of 1969 (42 
        U.S.C. 4321 et seq.); or
            (2) the Endangered Species Act of 1973 (16 U.S.C. 1531 et 
        seq.).

SEC. 10. SAVINGS CLAUSE.

    Nothing in this Act shall be construed to preempt any existing 
State law, including but not limited to area of origin and other water 
rights protections.

Output: Sacramento Valley Water Storage and Restoration Act of 2014 - Directs the Secretary of the Interior, acting through the Bureau of Reclamation, to: (1) finalize and publish in the Federal Register the feasibility study authorized in the Water Supply, Reliability, and Environmental Improvement Act, for enlargement of the Los Vaqueros Reservoir in Contra Costa County, California; (2) work with the Secretary of Commerce, the Army Corps of Engineers, and the Environmental Protection Agency (EPA) Administrator, by June 30, 2015, to coordinate the efforts of the relevant agencies and work with the state of California, the Sites Project Authority, and other stakeholders to complete and issue the final joint environmental impact statement and report on the Sites Project (the Sites Reservoir in Glenn and Colusa Counties, California, and related facilities, including associated water conveyance and hydropower generation and transmission facilities); and (3) enter into agreements with the Authority to carry out such work as the Bureau and the Authority mutually agree is appropriate to ensure that all studies and environmental reviews are completed on an expeditious basis and that the shortest applicable process under the National Environmental Policy Act is utilized, including in the completion of the final feasibility study and final joint environmental impact statement and report on the Sites Project. Amends the Calfed Bay-Delta Authorization Act to: (1) authorize construction of the Sites Reservoir in Colusa County if the Secretary determines that the project is feasible; and (2) direct the Bureau, at the Authority's request, to enter into a project partnership agreement for the Authority to provide full project management control for construction of the Sites Project, or a separable element of the Project, in accordance with plans approved by the Secretary. Authorizes and directs: (1) the Bureau to advance the Sites Project as a non-federal project if the Commissioner of the Bureau determines and the Secretary concurs that the Project can be expedited by the Authority as a non-federal project and that there is a demonstrable federal interest for the Project to be constructed and operated as a non-federal project, and (2) the Secretary to execute and implement a long-term agreement with the Authority for the coordination of operations of the Central Valley Project and the Sites Project.  Directs the Bureau to: (1) be the lead federal agency for the purposes of all federal reviews, analyses, opinions, statements, permits, licenses, or other approvals or decisions required under federal law to allow either the Bureau or the Authority to construct the Sites Project; and (2) take such steps as necessary to ensure that all such reviews, approvals, or decisions required to allow either the Bureau or the Authority to construct the Sites Project are completed on an expeditious basis and utilize the shortest applicable process. Directs the Secretary of Energy (DOE): (1) acting through the Western Area Power Administration, to determine by no later than June 30, 2015, if there is a federal interest in providing power to, and purchasing and marketing power produced by, the Sites Project; (2) if so, to take actions to support such determination; and (3) if not, to provide such support as is necessary to enable the Authority to market the energy produced by the Project.


Input: Consider Input: 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.


Output: 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.