TASK DEFINITION: In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
PROBLEM: SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE.

    (a) Short Title.--This Act may be cited as the ``Tobacco Smuggling 
Eradication Act of 2002''.

          TITLE I--AMENDMENTS TO INTERNAL REVENUE CODE OF 1986

SEC. 101. AMENDMENT OF 1986 CODE.

    Except as otherwise expressly provided, whenever in this title an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall be considered to 
be made to a section or other provision of the Internal Revenue Code of 
1986.

SEC. 102. IMPROVED MARKING AND LABELING.

    (a) In General.--Subsection (b) of section 5723 (relating to marks, 
labels, and notices) is amended--
            (1) by striking ``, if any,'' and
            (2) by adding at the end the following: ``Such marks, 
        labels, and notices shall include marks and notices relating to 
        the following:
            ``(1) Identification.--The Secretary shall promulgate 
        regulations that require each manufacturer or importer of 
        tobacco products to legibly print a unique serial number on all 
        packages of tobacco products manufactured or imported for sale 
        or distribution. Such serial number shall be designed to enable 
        the Secretary to identify the manufacturer or importer of the 
        product, and the location and date of manufacture or 
        importation. The Secretary shall determine the size and 
        location of the serial number.
            ``(2) Marking requirements for exports.--Each package of a 
        tobacco product that is exported shall be marked for export 
        from the United States. The Secretary shall promulgate 
        regulations to determine the size and location of the mark and 
        under what circumstances a waiver of this paragraph shall be 
        granted.''.
    (b) Sales on Indian Reservations.--Section 5723 is amended by 
adding at the end the following new subsections:
    ``(f) Sales on Indian Reservations.--The Secretary, in consultation 
with the Secretary of the Interior, shall promulgate regulations that 
require that each package of a tobacco product that is sold on an 
Indian reservation (as defined in section 403(9) of the Indian Child 
Protection and Family Violence Prevention Act (25 U.S.C. 3202(9)) be 
labeled as such. Such regulations shall include requirements for the 
size and location of the label.
    ``(g) Definition of Package.--For purposes of this section, the 
term `package' means the innermost sealed container irrespective of the 
material from which such container is made, in which a tobacco product 
is placed by the manufacturer and in which such tobacco product is 
offered for sale to a member of the general public.''.

SEC. 103. WHOLESALERS REQUIRED TO HAVE PERMIT.

    Section 5712 (relating to application for permit) is amended by 
inserting ``, wholesaler,'' after ``manufacturer''.

SEC. 104. CONDITIONS OF PERMIT.

    Subsection (a) of section 5713 (relating to issuance of permit) is 
amended to read as follows:
    ``(a) Issuance.--
            ``(1) In general.--A person shall not engage in business as 
        a manufacturer, wholesaler, or importer of tobacco products or 
        as an export warehouse proprietor without a permit to engage in 
        such business. Such permit shall be issued in such form and in 
        such manner as the Secretary shall by regulation prescribe, to 
        every person properly qualified under sections 5711 and 5712. A 
        new permit may be required at such other time as the Secretary 
        shall by regulation prescribe.
            ``(2) Conditions.--The issuance of a permit under this 
        section shall be conditioned upon the compliance with the 
        requirements of this chapter and the Contraband Cigarette 
        Trafficking Act (18 U.S.C. chapter 114), and any regulations 
        issued pursuant to such statutes.''.

SEC. 105. RECORDS TO BE MAINTAINED.

    Section 5741 (relating to records to be maintained) is amended--
            (1) by inserting ``(a) In General.--'' before ``Every 
        manufacturer'',
            (2) by inserting ``every wholesaler,'' after ``every 
        importer,'',
            (3) by striking ``such records'' and inserting ``records 
        concerning the chain of custody of the tobacco products and 
        such other records'', and
            (4) by adding at the end the following new subsection:
    ``(b) Retailers.--Retailers shall maintain records of receipt of 
tobacco products, and such records shall be available to the Secretary 
for inspection and audit. An ordinary commercial record or invoice 
shall satisfy the requirements of this subsection if such record shows 
the date of receipt, from whom tobacco products were received, and the 
quantity of tobacco products received.''.

SEC. 106. REPORTS.

    Section 5722 (relating to reports) is amended--
            (1) by inserting ``(a) In General.--'' before ``Every 
        manufacturer'', and
            (2) by adding at the end the following new subsection:
    ``(b) Reports By Export Warehouse Proprietors.--
            ``(1) In general.--Prior to exportation of tobacco products 
        from the United States, the export warehouse proprietor shall 
        submit a report (in such manner and form as the Secretary may 
        by regulation prescribe) to enable the Secretary to identify 
        the shipment and assure that it reaches its intended 
        destination.
            ``(2) Agreements with foreign governments.--Notwithstanding 
        section 6103 of this title, the Secretary is authorized to 
        enter into agreements with foreign governments to exchange or 
        share information contained in reports received from export 
        warehouse proprietors of tobacco products if--
                    ``(A) the Secretary believes that such agreement 
                will assist in--
                            ``(i) ensuring compliance with the 
                        provisions of this chapter or regulations 
                        promulgated thereunder, or
                            ``(ii) preventing or detecting violations 
                        of the provisions of this chapter or 
                        regulations promulgated thereunder, and
                    ``(B) the Secretary obtains assurances from such 
                government that the information will be held in 
                confidence and used only for the purposes specified in 
                clauses (i) and (ii) of subparagraph (A).
        No information may be exchanged or shared with any government 
        that has violated such assurances.''.

SEC. 107. FRAUDULENT OFFENSES.

    (a) In General.--Subsection (a) of section 5762 (relating to 
fraudulent offenses) is amended by striking paragraph (1) and 
redesignating paragraphs (2) through (6) as paragraphs (1) through (5), 
respectively.
    (b) Offenses Relating to Distribution of Tobacco Products.--Section 
5762 is amended--
            (1) by redesignating subsection (b) as subsection (c),
            (2) in subsection (c) (as so redesignated), by inserting 
        ``or (b)'' after ``(a)'', and
            (3) by inserting after subsection (a) the following new 
        subsection:
    ``(b) Offenses Relating to Distribution of Tobacco Products.--It 
shall be unlawful--
            ``(1) for any person to engage in the business as a 
        manufacturer or importer of tobacco products or cigarette 
        papers and tubes, or to engage in the business as a wholesaler 
        or an export warehouse proprietor, without filing the bond and 
        obtaining the permit where required by this chapter or 
        regulations thereunder;
            ``(2) for a manufacturer, importer, or wholesaler permitted 
        under this chapter intentionally to ship, transport, deliver, 
        or receive any tobacco products from or to any person other 
        than a person permitted under this chapter or a retailer, 
        except a permitted importer may receive foreign tobacco 
        products from a foreign manufacturer or a foreign distributor 
        that have not previously entered the United States;
            ``(3) for any person (other than the original manufacturer 
        of such tobacco products or an export warehouse proprietor 
        authorized to receive any tobacco products that have previously 
        been exported and returned to the United States) to receive any 
        tobacco products that have previously been exported and 
        returned to the United States;
            ``(4) for any export warehouse proprietor intentionally to 
        ship, transport, sell, or deliver for sale any tobacco products 
        to any person other than the original manufacturer of such 
        tobacco products, another export warehouse proprietor, or a 
        foreign purchaser;
            ``(5) for any person (other than a manufacturer or an 
        export warehouse proprietor permitted under this chapter) 
        intentionally to ship, transport, receive, or possess, for 
        purposes of resale, any tobacco product in packages marked 
        pursuant to regulations issued under section 5723, other than 
        for direct return to a manufacturer for repacking or for re-
        exportation or to an export warehouse proprietor for re-
        exportation;
            ``(6) for any manufacturer, importer, export warehouse 
        proprietor, or wholesaler permitted under this chapter to make 
        intentionally any false entry in, to fail willfully to make 
        appropriate entry in, or to fail willfully to maintain properly 
        any record or report that such person is required to keep as 
        required by this chapter or the regulations promulgated 
        thereunder; and
            ``(7) for any person to alter, mutilate, destroy, 
        obliterate, or remove any mark or label required under this 
        chapter upon a tobacco product held for sale, except pursuant 
        to regulations of the Secretary authorizing relabeling for 
        purposes of compliance with the requirements of this section or 
        of State law.
Any person violating any of the provisions of this subsection shall, 
upon conviction, be fined as provided in section 3571 of title 18, 
United States Code, imprisoned for not more than 5 years, or both.''.
    (c) Intentionally Defined.--Section 5762 is amended by adding at 
the end the following:
    ``(d) Definition of Intentionally.--For purposes of this section 
and section 5761, the term `intentionally' means doing an act, or 
omitting to do an act, deliberately, and not due to accident, 
inadvertence, or mistake, regardless of whether the person knew that 
the act or omission constituted an offense.''.

SEC. 108. CIVIL PENALTIES.

    Subsection (a) of section 5761 (relating to civil penalties) is 
amended--
            (1) by striking ``willfully'' and inserting 
        ``intentionally'', and
            (2) by striking ``$1,000'' and inserting ``$10,000''.

SEC. 109. DEFINITIONS.

    (a) Export Warehouse Proprietor.--Subsection (i) of section 5702 
(relating to definition of export warehouse proprietor) is amended by 
inserting before the period the following: ``or any person engaged in 
the business of exporting tobacco products from the United States for 
purposes of sale or distribution. Any duty free store that sells, 
offers for sale, or otherwise distributes to any person in any single 
transaction more than 30 packages of cigarettes, or its equivalent for 
other tobacco products as the Secretary shall by regulation prescribe, 
shall be deemed an export warehouse proprietor under this chapter''.
    (b) Retailer; Wholesaler.--Section 5702 is amended by adding at the 
end the following:
    ``(p) Retailer.--The term `retailer' means any dealer who sells, or 
offers for sale, any tobacco product at retail. The term `retailer' 
includes any duty-free store that sells, offers for sale, or otherwise 
distributes at retail in any single transaction 30 or less packages, or 
its equivalent for other tobacco products.
    ``(q) Wholesaler.--The term `wholesaler' means any person engaged 
in the business of purchasing tobacco products for resale at wholesale, 
or any person acting as an agent or broker for any person engaged in 
the business of purchasing tobacco products for resale at wholesale.''.

SEC. 110. EFFECTIVE DATE.

    The amendments made by this title shall take effect on January 1, 
2003.

    TITLE II--AMENDMENTS TO THE CONTRABAND CIGARETTE TRAFFICKING ACT

SEC. 201. AMENDMENTS TO THE CONTRABAND CIGARETTE TRAFFICKING ACT.

    (a) Definitions.--Section 2341 of title 18, United States Code, is 
amended--
            (1) in paragraph (2)--
                    (A) by striking ``60,000'' and inserting 
                ``30,000'', and
                    (B) by inserting ``or importer'' after ``as a 
                manufacturer'';
            (2) in paragraph (4), by striking ``and'' at the end;
            (3) in paragraph (5), by striking the period and inserting 
        a semicolon; and
            (4) by adding at the end the following:
            ``(6) the term `tobacco product' means cigars, cigarettes, 
        smokeless tobacco, and pipe tobacco (as such terms are defined 
        in section 5701 of the Internal Revenue Code of 1986); and
            ``(7) the term `contraband tobacco product' means a 
        quantity of tobacco product that is equivalent to or more than 
        30,000 cigarettes as determined by regulation, which bear no 
        evidence of the payment of applicable State tobacco taxes in 
        the State where such tobacco products are found, if such State 
        requires a stamp, impression, or other indication to be placed 
        on packages or other containers of product to evidence payment 
        of tobacco taxes.''
    (b) Unlawful Acts.--Section 2342 of title 18, United States Code, 
is amended--
            (1) in subsection (a), by inserting ``or contraband tobacco 
        products'' before the period;
            (2) by amending subsection (b) to read as follows:
    ``(b)(1) It shall be unlawful for any person--
            ``(A) knowingly to make any false statement or 
        representation with respect to the information required by this 
        chapter to be kept in the records or reports of any person who 
        ships, sells, or distributes--
                    ``(i) any quantity of cigarettes in excess of 
                30,000 in a single transaction or in a series of 
                related transactions, or
                    ``(ii) tobacco products in such equivalent 
                quantities as shall be determined by regulation, or
            ``(B) knowingly to fail to maintain records or reports, 
        alter or obliterate required markings, or interfere with any 
        inspection, required under this chapter, with respect to such 
        quantity of cigarettes or other tobacco products.''; and
            (3) by adding at the end the following:
    ``(c) It shall be unlawful for any person knowingly to transport 
tobacco products under a false bill of lading or without any bill of 
lading.''.
    (c) Recordkeeping.--Section 2343 of title 18, United States Code, 
is amended--
            (1) in subsection (a), by striking ``60,000 in a single 
        transaction'' and inserting ``30,000 in a single transaction or 
        in a series of related transactions, or, in the case of other 
        tobacco products an equivalent quantity as determined by 
        regulation,'';
            (2) by amending the last sentence of subsection (a) to read 
        as follows: ``Except as provided in subsection (c) of this 
        section, nothing contained herein shall authorize the Secretary 
        to require reporting under this section.'';
            (3) in subsection (b), by striking ``60,000 in a single 
        transaction'' and inserting ``30,000 in a single transaction or 
        in a series of related transactions, or, in the case of other 
        tobacco products an equivalent quantity as determined by 
        regulation,''; and
            (4) by adding at the end the following:
    ``(c)(1) Any person who ships, sells, or distributes tobacco 
products for resale in interstate commerce, whereby such tobacco 
products are shipped into a State taxing the sale or use of such 
tobacco products or who advertises or offers tobacco products for such 
sale or transfer and shipment shall--
            ``(A) first file with the tobacco tax administrator of the 
        State into which such shipment is made or in which such 
        advertisement or offer is disseminated, a statement setting for 
        the person's name, and trade name (if any), and the address of 
        the person's principal place of business and of any other place 
        of business; and
            ``(B) not later than the 10th of each calendar month, file 
        with the tobacco tax administrator of the State into which such 
        shipment is made a memorandum or a copy of the invoice covering 
        each and every shipment of tobacco products made during the 
        previous calendar month into such State; the memorandum or 
        invoice in each case to include the name and address of the 
        person to whom the shipment was made, the brand, and the 
        quantity thereof.
    ``(2) The fact that any person ships or delivers for shipment any 
tobacco products shall, if such shipment is into a State in which such 
person has filed a statement with the tobacco tax administrator under 
paragraph (1)(A) of this subsection, be presumptive evidence that such 
tobacco products were sold, shipped, or distributed for resale by such 
person.
    ``(3) For purposes of this subsection--
            ``(A) the term `use' in addition to its ordinary meaning, 
        means consumption, storage, handling, or disposal of tobacco 
        products; and
            ``(B) the term `tobacco tax administrator' means the State 
        official authorized to administer tobacco tax laws of the 
        State.''.
    (d) Penalties.--Section 2344 of title 18, United States Code, is 
amended--
            (1) in subsection (b), by inserting ``or (c)'' after 
        ``section 2342(b)'' and by inserting ``or (c)'' after section 
        2343(a)''; and
            (2) by striking subsection (c) and inserting the following 
        new subsection:
    ``(c) Any contraband cigarettes or contraband tobacco products 
involved in any violation of the provisions of this chapter shall be 
subject to seizure and forfeiture, and all provisions of section 
9703(o) of title 31, United States Code, shall, so far as applicable, 
extend to seizures and forfeitures under the provisions of this 
chapter.''
    (e) Repeal.--The Act of October 19, 1949, entitled ``An Act to 
assist States in collecting sales and use taxes on cigarettes'', 63 
Stat. 884 (chapter 10A of title 15, U.S.C.), is hereby repealed.

SOLUTION: Tobacco Smuggling Eradication Act of 2002 - Amends chapter 52 (Tobacco Products and Cigarette Papers and Tubes) of the Internal Revenue Code to require all packages of tobacco products to carry a unique legibly printed serial number by which the Secretary of the Treasury can identify the manufacturer or importer and the location and date of manufacture or importation. Requires tobacco products sold on Indian reservations to be labeled as such.Requires a tobacco wholesaler to have a permit and to maintain certain records.Requires export warehouse proprietors to file certain reports with the Secretary. Authorizes the Secretary to enter into certain tobacco related information agreements with foreign countries.Establishes new offenses relating to the distribution of tobacco.Raises the $1,000 civil penalty under chapter 52 to $10,000.Amends the Contraband Cigarette Trafficking Act to: (1) expand the applicability of such Act from cigarettes only to "tobacco product" (cigars, cigarettes, smokeless tobacco, and pipe tobacco); (2) define "contraband tobacco product" as a quantity of tobacco product that is equivalent to or more than 30,000 cigarettes (currently, 60,000) which bear no evidence of the payment of applicable State tobacco taxes; (3) establish new unlawful acts; and (4) require additional recordkeeping.Repeals Federal law provisions concerning reports required to State tobacco tax administrators by individuals engaged in interstate cigarette commerce.

PROBLEM: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Tinnitus Research for Military 
Health Improvement Act''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) Tinnitus, or the perception of sound where no external 
        source of such sound exists, is the most prevalent disabling 
        condition that affects members of the Armed Forces, most 
        notably those members who have been exposed to blast injuries 
        during combat, or other high noise level situations.
            (2) Tinnitus is the leading service-connected disability 
        for returning members of the Armed Forces and the prevalence of 
        tinnitus is continuing to increase at alarming rates.
            (3) An otologic, or ear, injury such as tinnitus has been 
        shown to decrease performance and situational awareness during 
        combat, seriously compromising the ability of a member of the 
        Armed Forces to hear and execute commands properly, thereby 
        jeopardizing not only the affected member but other members as 
        well.
            (4) While certain types of sensory impairment in combat or 
        other military activities may be readily apparent, otologic 
        injuries such as tinnitus may not be easily noticeable, which 
        necessitates the need for more rigorous screening for tinnitus 
        before and after deployment, and for additional research to 
        distinguish tinnitus from other forms of brain injury incurred 
        during combat.
            (5) Medical evidence to date suggests a demonstrated link 
        between tinnitus and post-traumatic stress disorder and 
        traumatic brain injury, such that improved understanding of 
        treatment of tinnitus may also directly advance research 
        efforts to address post-traumatic stress disorder and traumatic 
        brain injury.
            (6) Improving the treatment and prevention of tinnitus will 
        benefit all members of the Armed Forces who are increasingly at 
        risk of injury from high-decibel equipment or explosive 
        devices.

SEC. 3. CENTER OF EXCELLENCE FOR THE STUDY OF TINNITUS.

    (a) Establishment.--
            (1) In general.--The Secretary of Defense shall establish 
        one or more Centers of Excellence (in this section referred to 
        as a ``center'') for the study of tinnitus.
            (2) Location.--The Secretary shall establish a center at a 
        military installation in the United States where members of the 
        Armed Forces perform activities involving high rates of sound, 
        including artillery instruction and other basic combat training 
        related activities.
    (b) Responsibilities.--A center shall have the responsibilities as 
follows:
            (1) To study and enhance existing treatment modalities for 
        members of the Armed Forces with tinnitus, including diagnosed 
        cases of recurrent, chronic, or severe tinnitus.
            (2) To conduct basic and clinical research to prevent, 
        treat, and cure tinnitus, including studies on the neurological 
        changes in the brain associated with tinnitus.
            (3) To coordinate research activities with the Defense 
        Centers of Excellence for Psychological Health and Traumatic 
        Brain Injury in order to establish a tinnitus data registry for 
        members of the Armed Forces affected with tinnitus and other 
        neurological conditions that will enhance scientific progress 
        toward improvements in treatment for tinnitus and associated 
        neurological combat related conditions.
    (c) Reports.--Not later than one year after the date of the 
enactment of this Act, and annually thereafter, the Secretary of 
Defense shall submit to Congress a report on the activities of the 
center.
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $7,000,000 for each of fiscal 
years 2011 through 2016.

SEC. 4. AURAL SCREENINGS FOR MEMBERS OF THE ARMED FORCES.

    (a) In General.--Paragraph (2) of section 1074f(b) of title 10, 
United States Code, is amended by adding at the end the following new 
subparagraph:
            ``(D) An aural screening, including an assessment of 
        tinnitus.''.
    (b) Effective Date.--Section 1074f(b)(2) of title 10, United States 
Code, as added by subsection (a) of this section, shall apply to 
members of the Armed Forces who are deployed or return from deployment 
on or after the date that is 30 days after the date of the enactment of 
this Act.

SEC. 5. GRANT PROGRAM TO ENCOURAGE TINNITUS RESEARCH.

    (a) In General.--Subject to the availability of appropriations 
provided for such purpose, the Secretary of Defense shall establish a 
program to award grants to institutions to assist such institutions in 
conducting research on recurrent, chronic, or severe tinnitus and 
peripheral neurological conditions, including research related to 
neurology, pharmacology, audiology, otolaryngology, and other 
disciplines that the Secretary determines appropriate according to 
newly discovered evidence-based findings.
    (b) Eligibility.--
            (1) Teaching program.--An institution eligible to receive a 
        grant under this section is--
                    (A) a hospital with a teaching program described in 
                section 1861(b)(6) of the Social Security Act (42 
                U.S.C. 1395x); or
                    (B) an educational institution with demonstrated 
                expertise in tinnitus research.
            (2) Application.--To be eligible to receive a grant under 
        this section, an institution shall submit an application to the 
        Secretary of Defense at such time, in such manner, and 
        containing such information as the Secretary may require. The 
        Secretary shall ensure that such applications are peer-reviewed 
        by multidisciplinary tinnitus experts from both the public and 
        private sector.
    (c) Grant Amount.--An institution awarded a grant under this 
section may not receive more than $2,500,000 per fiscal year under this 
section.
    (d) Reports.--Not later than December 31 of each year a grant may 
be awarded under this section, the Secretary of Defense shall submit to 
Congress a report on the grant program, including a summary of the 
research related to tinnitus conducted by each grant recipient.
    (e) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $10,000,000 for each of fiscal 
years 2011 through 2016.

SEC. 6. IMPROVING AURAL PROTECTION FOR MEMBERS OF THE ARMED FORCES.

    (a) In General.--The Secretary of Defense shall examine methods to 
improve the aural protection for members of the Armed Forces in combat.
    (b) Report.--Not later than one year after the date of the 
enactment of this Act, the Secretary shall submit to Congress a report 
on the methods to improve aural protection examined under subsection 
(a).

SEC. 7. EXECUTIVE AGENT FOR TINNITUS.

    (a) Executive Agent.--Not later than 90 days after the date of the 
enactment of this Act, the Secretary of Defense shall designate a 
senior official of the Department of Defense to act as the executive 
agent for tinnitus.
    (b) Roles, Responsibilities, and Authorities.--
            (1) In general.--Not later than one year after the date of 
        the enactment of this Act, and in accordance with Directive 
        5101.1, the Secretary of Defense shall prescribe the roles, 
        responsibilities, and authorities of the executive agent 
        designated under subsection (a).
            (2) Specification.--The roles and responsibilities of the 
        executive agent designated under subsection (a) shall include 
        coordinating common functions related to tinnitus among the 
        military departments.
    (c) Support.--In accordance with Directive 5101.1, the Secretary of 
Defense shall ensure that the military departments, Defense Agencies, 
and other components of the Department of Defense provide the executive 
agent designated under subsection (a) with the appropriate support and 
resources needed to perform the roles, responsibilities, and 
authorities of the executive agent.
    (d) Definitions.--In this section:
            (1) The term ``Directive 5101.1'' means Department of 
        Defense Directive 5101.1, or any successor directive relating 
        to the responsibilities of an executive agent of the Department 
        of Defense.
            (2) The term ``executive agent'' has the meaning given the 
        term ``DoD Executive Agent'' in Directive 5101.1.

SOLUTION: Tinnitus Research for Military Health Improvement Act - Directs the Secretary of Defense (DOD) to establish one or more centers of excellence for the study of tinnitus. Requires such centers to be established at military installations where members of the Armed Forces perform activities involving high rates of sound, including artillery instruction. Outlines center activities, including researching and enhancing treatments for members with tinnitus.

Requires the inclusion, within a current medical tracking system for members deployed overseas, of an aural screening which shall include an assessment of tinnitus.

Directs the Secretary to establish a grant program to assist eligible institutions in conducting research on recurrent, chronic, or severe tinnitus and peripheral neurological conditions. Makes eligible for such grants: (1) a hospital with an approved teaching program as defined under the Social Security Act; or (2) an educational institution with demonstrated expertise in tinnitus research.

Requires the Secretary to designate a senior DOD official to act as the executive agent for tinnitus.

PROBLEM: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Rural Education Development 
Initiative for the 21st Century Act''.

SEC. 2. PURPOSE.

    The purpose of this Act is to provide rural school students in the 
United States with increased learning opportunities.

SEC. 3. FINDINGS.

    Congress makes the following findings:
            (1) While there are rural education initiatives identified 
        at the State and local level, no Federal education policy 
        focuses on the specific needs of rural school districts and 
        schools, especially those that serve poor students.
            (2) The National Center for Educational Statistics (NCES) 
        reports that 46 percent of our Nation's public schools serve 
        rural areas.
            (3) A critical problem for rural school districts involves 
        the hiring and retention of qualified administrators and 
        certified teachers (especially in science and mathematics). 
        Consequently, teachers in rural schools are almost twice as 
        likely to provide instruction in 3 or more subjects than 
        teachers in urban schools. Rural schools also face other tough 
        challenges, such as shrinking local tax bases, high 
        transportation costs, aging buildings, limited course 
        offerings, and limited resources.
            (4) Data from the National Assessment of Educational 
        Progress (NAEP) consistently shows large gaps between the 
        achievement of students in high-poverty schools and those in 
        other schools. High-poverty schools will face special 
        challenges in preparing their students to reach high standards 
        of performance on State and national assessments.

SEC. 4. DEFINITIONS.

    In this Act:
            (1) Elementary school; local educational agency; secondary 
        school; state educational agency.--The terms ``elementary 
        school'', ``local educational agency'', ``secondary school'', 
        and ``State educational agency'' have the meanings given the 
        terms in section 14101 of the Elementary and Secondary 
        Education Act of 1965 (20 U.S.C. 8801).
            (2) Eligible local educational agency.--The term ``eligible 
        local educational agency'' means a local educational agency 
        that serves--
                    (A) a school age population 15 percent or more of 
                whom are from families with incomes below the poverty 
                line; and
                    (B)(i) a rural locality; or
                    (ii) a school age population of 800 or fewer 
                students.
            (3) Metropolitan area.--The term ``metropolitan area'' 
        includes the area defined as such by the Bureau of the Census.
            (4) Poverty line.--The term ``poverty line'' means the 
        poverty line (as defined by the Office of Management and 
        Budget, and revised annually in accordance with section 673(2) 
        of the Community Services Block Grant Act (42 U.S.C. 9902(2))) 
        applicable to a family of the size involved.
            (5) Rural locality.--The term ``rural locality'' means a 
        locality that is not within a metropolitan area.
            (6) School age population.--The term ``school age 
        population'' means the number of students aged 5 through 17.
            (7) Secretary.--The term ``Secretary'' means the Secretary 
        of Education.

SEC. 5. PROGRAM AUTHORIZED.

    (a) Reservation.--From amounts appropriated under section 9 for a 
fiscal year the Secretary shall reserve 0.5 percent to make awards to 
elementary or secondary schools operated or supported by the Bureau of 
Indian Affairs to carry out the purpose of this Act.
    (b) Grants to States.--
            (1) In general.--From amounts appropriated under section 9 
        that are not reserved under subsection (a) for a fiscal year, 
        the Secretary shall award grants to State educational agencies 
        that have applications approved under section 7 to enable the 
        State educational agencies to award grants to eligible local 
        educational agencies for local authorized activities described 
        in subsection (c).
            (2) Formula.--
                    (A) In general.--Each State educational agency 
                shall receive a grant under this section in an amount 
                that bears the same relation to the amount of funds 
                appropriated under section 9 that are not reserved 
                under subsection (a) for a fiscal year as the school 
                age population served by eligible local educational 
                agencies in the State bears to the school age 
                population served by eligible local educational 
                agencies in all States.
                    (B) Data.--In determining the school age population 
                under subparagraph (A) the Secretary shall use the most 
                recent data available from the Bureau of the Census.
            (3) Direct awards to local educational agencies.--If a 
        State educational agency elects not to participate in the 
        program under this Act or does not have an application approved 
        under section 7, the Secretary may award, on a competitive 
        basis, the amount the State educational agency is eligible to 
        receive under paragraph (2) directly to eligible local 
        educational agencies in the State.
            (4) Matching requirement.--Each eligible local educational 
        agency that receives a grant under this Act shall contribute 
        resources with respect to the local authorized activities to be 
        assisted, in cash or in kind, from non-Federal sources, in an 
        amount equal to the Federal funds awarded under the grant.
    (c) Local Authorized Activities.--Grant funds awarded to local 
educational agencies under this Act shall be used for--
            (1) educational technology, including software and 
        hardware;
            (2) professional development;
            (3) technical assistance;
            (4) teacher recruitment and retention;
            (5) parental involvement activities; or
            (6) academic enrichment programs or other education 
        programs.
    (d) Relation to Other Federal Funding.--Funds received under this 
Act by a State educational agency or an eligible local educational 
agency shall not be taken into consideration in determining the 
eligibility for, or amount of, any other Federal funding awarded to the 
agency.

SEC. 6. STATE DISTRIBUTION OF FUNDS.

    (a) Award Basis.--A State educational agency shall award grants to 
eligible local educational agencies according to a formula developed by 
the State educational agency and approved by the Secretary.
    (b) First Year.--For the first year that a State educational agency 
receives a grant under this Act, the State educational agency--
            (1) shall use not less than 99 percent of the grant funds 
        to award grants to eligible local educational agencies in the 
        State; and
            (2) may use not more than 1 percent for State activities 
        and administrative costs related to the program.
    (c) Succeeding Years.--For the second and each succeeding year that 
a State educational agency receives a grant under this Act, the State 
educational agency--
            (1) shall use not less than 99.5 percent of the grant funds 
        to award grants to eligible local educational agencies in the 
        State; and
            (2) may use not more than 0.5 percent of the grant funds 
        for State activities and administrative costs related to the 
        program.

SEC. 7. APPLICATIONS.

    Each State educational agency, or local educational agency eligible 
for a grant under section 5(b)(3), that desires a grant under this Act 
shall submit an application to the Secretary at such time, in such 
manner, and accompanied by such information as the Secretary may 
require.

SEC. 8. REPORTS; ACCOUNTABILITY; STUDY.

    (a) State Reports.--
            (1) Contents.--Each State educational agency that receives 
        a grant under this Act shall provide an annual report to the 
        Secretary. The report shall describe--
                    (A) the method the State educational agency used to 
                award grants to eligible local educational agencies 
                under this Act;
                    (B) how eligible local educational agencies used 
                funds provided under this Act;
                    (C) how the State educational agency provided 
                technical assistance for an eligible local educational 
                agency that did not meet the goals and objectives 
                described in subsection (c)(3); and
                    (D) how the State educational agency took action 
                against an eligible local educational agency if the 
                local educational agency failed, for 2 consecutive 
                years, to meet the goals and objectives described in 
                subsection (c)(3).
            (2) Availability.--The Secretary shall make the annual 
        State reports received under paragraph (1) available for 
        dissemination to Congress, interested parties (including 
        educators, parents, students, and advocacy and civil rights 
        organizations), and the public.
    (b) Local Educational Agency Reports.--Each eligible local 
educational agency that receives a grant under section 5(b)(3) shall 
provide an annual report to the Secretary. The report shall describe 
how the local educational agency used funds provided under this Act and 
how the local educational agency coordinated funds received under this 
Act with other Federal, State, and local funds.
    (c) Report to Congress.--The Secretary shall prepare and submit to 
Congress an annual report. The report shall describe--
            (1) the methods the State educational agencies used to 
        award grants to eligible local educational agencies under this 
        Act;
            (2) how eligible local educational agencies used funds 
        provided under this Act; and
            (3) the progress made by State educational agencies and 
        eligible local educational agencies receiving assistance under 
        this Act in meeting specific, annual, measurable performance 
        goals and objectives established by such agencies for 
        activities assisted under this Act.
    (d) Accountability.--The Secretary, at the end of the third year 
that a State educational agency participates in the program assisted 
under this Act, shall permit only those State educational agencies that 
met their performance goals and objectives, for two consecutive years, 
to continue to participate in the program.
    (e) Study.--The Comptroller General of the United States shall 
conduct a study regarding the impact of assistance provided under this 
Act on student achievement. The Controller General shall report the 
results of the study to Congress.

SEC. 9. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to carry out this Act 
$300,000,000 for each of the fiscal years 2001 through 2004.

SOLUTION:
Reserves a specified portion of grant funds for schools operated by the Bureau of Indian Affairs.
Sets forth an allotment formula for grants to State educational agencies (SEAs) to make grants to eligible LEAs.
Authorizes the Secretary to make direct competitive grants to specially qualified eligible rural LEAs in nonparticipating States.
Requires LEAs or their schools to use grant funds for: (1) educational technology, including software and hardware; (2) professional development; (3) technical assistance; (4) teacher recruitment and retention; (5) parental involvement activities; or (6) academic enrichment programs or other education programs.
Requires SEAs to award grants on a formula basis. Requires that at least 99 percent of such funds be awarded to eligible LEAs in the first year, and 99.5 in the second and in each succeeding year that an SEA receives such a grant. Allows the remainder to be used for State activities and administrative costs related to the grant program.
Requires reports by SEAs, LEAs, and the Secretary.
Directs the Secretary, at the end of the third year an SEA participates in the program, to permit continued participation only if the SEA has met its performance goals and objectives for two consecutive years.
Directs the Comptroller General to study and report to Congress on this Act's impact on student achievement.
Authorizes appropriations.